Public Service Commissioner's Review

This Annual Report focuses on the Australian Public Service Commission and our performance in meeting our statutory responsibilities and contributing to the Outcome sought from us by the Government.

I believe that the Commission has made significant progress against the strategic directions set in last year’s Corporate Plan and the outputs specified in the 2002—03 Budget. We have strengthened our evaluation capacity and role to provide Parliament and the APS with assurance that the Service is performing effectively, and we are working towards ensuring that the Service has the capability to continue delivering in the future. We have also focused on improving the Commission’s communication capacity and strengthening internal management and expertise.

For the first time the Commission has undertaken an independent client satisfaction survey to measure and review our strategic directions and performance.

The research employed qualitative face-to-face interviews with Agency Heads or their delegates and a simple survey of their heads of corporate services. I will be providing all Agency Heads with a brief summary report on the survey findings in conjunction with the release of our revised corporate plan in September 2003.

Results indicated that clients rate the service overall as satisfactory, emphasising the Commission’s responsiveness, quality of services and the value of the advice. There was a strong sense that the Commission was ‘on track’ and should continue in the same direction, that it was taking a more proactive approach, tackling more strategic issues, being more responsive, visible, future-oriented and facilitative.

Respondents felt that the Commission has made a difference in the last 12 months through its work on organisational renewal, its learning and development initiatives, its tackling of employment issues, its work on APS Values and its commitment to Indigenous public servants. They also felt that the Commission’s two key strategic directions remain relevant as a major focus over the next few years, and are seen as crucial business for the Commission.

Where there was dissatisfaction it focused on occasions of cautiousness, old centralist roles re-emerging, confusion over the Commission’s role in relation to other agencies, some breakdown in the value of advice given and in not adjusting to the specific needs of particular agencies. Small agencies felt they could benefit from a closer relationship with the Commission and that they needed more help.

The majority of clients are happy with the profile of the Commission. Of those not happy, most want the profile to be higher and see the need for stronger leadership and greater penetration into all levels of the public service.

Emerging issues for the APS in the future were seen as workforce demographics, dealing effectively with underperformance, work/life balance, capability building and accountability. It was felt that the Commission could add value to agency efforts in relation to these emerging issues by doing more of what it is already doing, by embarking on more research, reviews and comparative studies around these issues, by supporting debate and sharing initiatives, and by focusing on practical and operational issues and good practice guidelines.

Respondents felt that the Commission could give even higher priority to performance management, career management and leadership development and recruitment and rewards.

These results will be used as a benchmark with follow-ups conducted on an annual basis. Such research is important in helping us to deliver on our commitment to clients. The results of the first survey will also be a significant input to our consideration of strategic priorities for 2003—04 and beyond.

The year in review

The Commission has achieved good progress against its strategic directions during 2002—03 with some significant projects finalised and others progressing or commencing.

Evaluation and assurance

A key challenge for the Commission and all APS Agencies is to "hardwire" the Values, so we can be confident they are, and will continue to be, upheld.

The Commission has completed a project with the purpose of developing a good practice guide to help Agency Heads and senior managers embed the APS Values into their agency's systems, practices and behaviours.

The purpose of the project was to use the experience of six agencies in relation to promoting and upholding the APS Values to produce the guide, which would be useful for all APS agencies. The key message that is evolving from the conclusion of the project is that a strategic and integrated approach is required to embed the Values into agencies’ systems, practices and behaviours and the ingredients of such an approach would include, amongst other things, the need for effective leadership and learning and development strategies; hardwiring the Values into instructions and guidance; and effective control and assurance mechanisms. The guide, Embedding the APS Values, was launched in August 2003 along with the publication, APS Values and Code of Conduct in Practice: A guide to official conduct for APS employees and Agency Heads.

The latter guide is a significant milestone for the Commission. It represents a substantial revision of the 1995 Guidelines on Official Conduct, providing practical guidance on the principles now laid out in the PS Act 1999’s APS Values and Code of Conduct. Delays in finalising the guidelines relate to my desire to ensure wide consultation and support, notwithstanding that they are being issued under my independent statutory role.

There is a strong interest in the APS Values and Code of Conduct, and in our experience in making them work in a devolved environment, both internationally and in the Australian community. I have spoken to a number of fora in Australia and overseas during the year on these issues.

Our major evaluative projects continue to be accepted positively. The 2001—02 State of the Service Report was more substantial than in previous years. The 2002—03 Report, which will be published in October 2003, has adopted an improved agency survey and, as foreshadowed last year, has introduced an APS employee survey. The survey has included specific questions on learning and development which will provide more data to be used for future analysis and synthesis of information. The Workplace Diversity Report and Statistical Bulletin published in October 2002 have also received positive responses. The client survey results suggest some lack of awareness of the material available to agencies in these reports and the Commission will be looking to better target promotion of its information and statistical holdings as part of its assessment for the Parliament and other stakeholders of the efficiency and professionalism of the APS.

Service of the future

A key challenge in our devolved environment is to develop individuals who will become the leadership cadre for a high performing APS into the future. Leadership is about inspiring and motivating, and leading for commitment, not only to organisational outcomes but to the fundamental values and meaning of public service.

The Senior Executive Leadership Capabilities identify five core attributes for successful public sector senior executives: shapes strategic thinking; achieves results; cultivates productive working relations; exemplifies personal drive and integrity; and communicates with influence. These relate explicitly to the managerial needs of the APS of the future: flexibility, results-based management, client and stakeholder management and integration.

In April, the Commission approved the strategic framework for a new Integrated Leadership Strategy. The strategy will clarify the capabilities required at different management levels, and lead to new and revised learning and development activities to be offered by the Commission and through agency arrangements. It will support more careful career planning and succession management. A reference group of Agency Heads is assisting with the development of the strategy. A progress report is planned for later in 2003, with a full outline to be released in mid-2004.

I was pleased to represent the Commonwealth on the Foundation Board of the Australian and New Zealand School of Government (ANZSOG). Our commitment to the School reflects the Government’s view of the importance of a capable, responsive public sector with effective leadership and the ability to meet the challenges of the service of the future.

Encouraging Indigenous employment in the APS is a high priority for the Government and the Commission. To this end, a practical strategy is being developed under guidance of a steering committee to address structural obstacles that are currently thwarting further improvements in Indigenous employment. One positive step has been the successful introduction of the indigenous employees networks. Significant progress has also been made in establishing Indigenous networks in regional areas. A network is well established in NSW and steering committees have been established in WA, Victoria and SA. The Commission has also developed a number of programs designed to assist in career development for Indigenous employees and career development courses were run for APS 1—4 staff. Programs for leadership development aimed at EL 1—2 level and career progression for APS 5—6 are currently under development.

The Commission's commitment to the Management Advisory Committee (MAC) has also met with some success this year. There has been significant interest in the Organisational Renewal report which the Commission contributed to substantially, and has subsequently promoted across the APS through a series of presentations. The Commission is currently assisting MAC in the Whole of Government project which was initiated in early 2003, having been identified in the State of the Service Report as a priority issue. It was pleasing that our client survey revealed 75% of MAC members were satisfied by the services provided by the Commission.

Communications

Improving our communications was a conscious strategic priority in the last year– not in order to raise the profile of the Commission per se–but to help promote the professionalism of the APS, to increase self-awareness amongst APS employees of the importance of their role and their self-confidence in meeting their responsibilities, and to improve the effective use of Commission products, services and advice.

These aims require, of course, not only good communications but credibility of the content and quality of Commission products. The client survey suggests we are getting the mix about right. The higher profile some want us to achieve will require continued effort on the quality of our products and our credibility through close productive relationships with agencies and their Heads.

Considerable emphasis has been placed on a higher Commission presence in regional areas. In order to promote leadership at the senior regional levels, I and other senior Commission staff have undertaken visits to state capitals and other regional areas and encouraged Agency Heads to be guest speakers at Regional Directors Networks. The Commission’s regional teams have been active in promoting and developing networks to increase access to and awareness of Commission advice, products and services. This has led to greater cross-jurisdictional projects, particularly in areas where there is a low APS presence.

Audience surveys show 75% of people think that that Commission publications and presentations are of good quality and relevant. While this result is pleasing, the Commission will continue to work towards better targeted, relevant service delivery.

The Commission has also been working toward better use of the electronic medium. Last year’s Annual Report was one of the first annual reports to be made available on a website in fully functional html format. This focus has led to considerable improvement in the quality and search capacity achieved in the Commission's website and Intranet.

Staff are being encouraged to look at developing material to suit the electronic medium rather than focusing on hard copy publications that are then posted on the website. The Recruitment and Selection Kit is one example of using the electronic medium to its best advantage. The Kit will be given to agencies in electronic format (supplemented by printed material) to encourage insertion of agency specific material to provide a complete information package for line managers.

Work has been undertaken with agencies to improve the data quality of APSED and further develop the internet interface. It is a priority to ensure that the data is as complete as possible as this data is used in the State of the Service Report and other reporting and evaluation, and is drawn upon by MAC and other bodies.

Organisational alignment

One major corporate activity drawing on resources in the Commission has been the development of the Commission’s third certified agreement. The agreement, which was certified in June, was supported by 65% of the staff who voted. While this was a lower than anticipated result, I was pleased with the level of consultation and involvement of staff in the process.

The agreement, which was again made directly with employees, introduced a more structured approach to salary advancement, aimed to support more systematic learning and development to deepen our skills base and the Commission’s capability.

A staff survey conducted in October 2002 indicated some good results in relation to satisfaction with work, pride in the Commission, support for the APS Values, and reasonable understanding of the Commission's role and priorities.

Some improvement in performance management was reported but further work will be needed to address some concerns including about behaviour and stress.

The Commission is dependent upon the professionalism of its diverse staff and will undertake projects to develop the capabilities of employees in 2003—04. This investment is particularly important given that the Commission continues to rely substantially on non-budget revenue, and therefore on the quality and attractiveness of its fee-for-service activity.

Financially, the Commission’s position remains sound. The Commission initiated work on a number of new strategic priorities during 2002—03 and this work resulted in a shift from the pattern of sizeable operating surpluses of recent years to a modest surplus in 2002—03 with an increase of about 15 staff. Notwithstanding investment in these new strategic priorities, the Commission has maintained an accumulated surplus sufficient to cover accrued employee liabilities and to fund possible new initiatives. This position results from increased off-budget revenues and a less risk averse approach to managing the uncertainty surrounding these revenues.

Possible investment of additional accumulated funds in new initiatives was mentioned in the 2001—02 Annual Report and the Commission is planning to access some of these funds during 2003—04, and possibly out years, to invest in developing an integrated approach to leadership development in the APS and improved strategies to increase Indigenous employment in the APS.

Involvement in other projects

In April 2002, I was commissioned by the Presiding Officers in my capacity of Parliamentary Services Commissioner to review the potential for the administration of parliamentary departments to be undertaken more cost effectively. In conducting the review, which was presented to the Presiding Officers in September 2002, I was ably assisted by staff of the Commission. Research undertaken as background to this review led to the publication of the first in a series of occasional papers by Commission staff: Parliament–Master of its own Household? Occasional Paper 1. The Review and the Occasional Paper are available on the Commission’s website.

The Commission contributed a staff member to the Government Review of Statutory Authorities and Office Holders (the Uhrig Review).

Finally, I am very pleased to report that the Commission’s 2001—02 Annual Report was highly commended through the Annual Report Awards conducted by IPAA.

Outlook

Feedback from APS agencies in the Client Satisfaction Survey has confirmed that they agree with the path the Commission set in the 2002—03 Corporate Plan:

• more evaluation work in collaboration with agencies
• building the capability for the APS for the future and
• taking a higher profile in representing the APS.

Emerging issues identified by agencies include workforce planning, improved management of underperformance and work/life balance. The Commission will also be giving particular consideration to the circumstances of small agencies in the coming year.

The Commission’s Corporate Plan will be revised in early 2003—04 to progress these strategic directions. Reporting should be easier in the coming year as the directions of the Commission are now aligned with its structure and budgetary outputs.

The Commission will be looking to further increase our profile in supporting the APS as a key institution, and helping to build its self-confidence. That profile needs to be credible, of course, and we will be looking to continue to build our expertise and our knowledge base.

I believe that the APS Commission is uniquely placed to help build the confidence of the APS. Such confidence requires a clear understanding of the role and responsibilities of the APS, which are reflected in the APS Values, and a high level of credibility with the Government and the public based on the expertise of the APS, use of technology and on a culture that promotes active engagement across and beyond the APS.

Strategic priorities

The following four subheadings summarise the strategic directions for the Commission set out in the revised Corporate Plan for 2003-04. Without displacing our ongoing functions and responsibilities, they will help the Commission progress towards its Vision:

A Commission recognised by Government, Parliament and the APS for its valuable contribution to a confident, high quality and sustainable APS

Evaluation and assurance

In the coming year, there will be continuing work on evaluation and development of the Commission’s complementary evaluation agenda.

The Commission will be focusing on strengthening the evidence base in the State of the Service Report. The 2002—03 report to be released later in 2003 will contain for the first time a survey of employee views on issues relating to APS employment. There will be a continued emphasis on refining data collection to ensure reliable reporting.

I anticipate that the demand for Commission guidance can be expected to continue to increase during the coming years. In addition to the State of the Service Report, the Commission will be introducing a program of specific issue-based evaluation projects. Projects that are under consideration for 2003—04 are examining procedures dealing with underperformance and management of breaches of the Code of Conduct, and factors affecting perceptions of merit.

The publication of the new Guide to Official Conduct is a key to promoting and explaining the APS Values and the Code of Conduct. The Guide is supported by the good practice Guide on embedding the APS Values into agency systems, practice and culture. The two publications will provide practical assistance to agencies and APS employees in ensuring the Values are constantly upheld and the professionalism of the Service is firmly reinforced. The Commission plans to follow up the new publications with extensive briefing and promotion, and by developing a supporting booklet.

Service of the future

We will be giving significant impetus to the work we have commenced on a more integrated approach to leadership development and to our enhanced evaluation function.

Emerging fields of interest for the Commission include implementation of an integrated leadership strategy; building APS capability through promotion of better people management in areas such as workforce planning, succession management, career development and performance management (including following up the MAC Report Organisational Renewal); and promoting whole-of-government capacity to address Government priorities. We will also be considering how the Commission might make further use of our data holdings in contributing to the management of the APS.

Another priority will continue to be the promotion of better practice in recruiting, developing and retaining Indigenous employees through the work of the Indigenous Employment Project and continued support and development of the Indigenous APS Employees Network. I envisage continued Commission involvement in this area.

We also plan to continue our strong involvement in MAC, with particular priorities in the coming year being the Whole of Government project and facilitating development of the MAC agenda. The Commission's Foundations of Organisational Performance research program will be largely completed, complementing the work of the Uhrig Review of corporate governance and providing issues for discussion on areas that can be improved.

The Commission will be promoting the flexibilities in the employment framework and agreement making consistent with expressed Government policy.

Communications

The Commission will be focusing on implementing an information and communication strategy to strengthen our public representation of the APS and to improve our networks across and beyond the APS. This is necessary to provide the infrastructure to involve and to engage the APS and other sectors in issues of the future. It is also necessary if we are to continue a collegiate approach to work and to work in partnership with agencies.

Significant work has been undertaken to enhance our Internet site and a particular priority will now be given to our capacity for e-communications.

Organisational alignment

We will be looking to continue to build our expertise and our knowledge base in order to further increase our profile and credibility in supporting and developing the APS as a key institution.

The staff survey and discussions during the development of our new certified agreement indicated that we need to take a more structured approach to learning and development, including building our people management, performance planning and feedback skills. The need to build on the work we have commenced on workforce planning was also affirmed. Australian Workforce Agreements will also be used to reinforce commitment to the Commission’s strategic priorities and to promote capability building as well as high performance.

Within the Commission, we will be investing in learning and development and improved data systems. We will also be focusing on leadership and management development (including performance planning and feedback skills) and the progress made on workforce planning, continuing to foster our capability in public administration, building our financial management systems and skills and refining our communications. An important element of this work will be a series of residential workshops for all executive level staff to be conducted later this year with a focus on skills development and bedding down our strategic directions and priorities.