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Last updated: 31 January 2007
Implementing Machinery of Government Changes: A good practice guide
This publication has been updated.
The Second edition is available at www.apsc.gov.au/publications10/machineryofgovernment.htm
2 Principles and approach
The APS Values, under the PS Act, provide for an APS that is responsive to the Government in providing frank, honest, comprehensive, accurate and timely advice and in implementing the Government’s policies and programmes.The Public Service Commissioner’s (Commissioner) Direction 2.7 specifies that Government decisions be implemented professionally and with integrity.
Consistent with the APS Values, the principles guiding agency heads in effectively implementing MOG changes are:
- Taking a whole-of-government approach across agencies and with central agencies working to an agreed objective
- Good faith negotiations
- Open and honest identification of resource implications
- Timely and accurate exchange of information
- Constructive and open communication with staff
- Providing early advice and assistance to staff
- Consultation – employees have opportunities to contribute to the implementation process within the boundaries of the decision/s taken by Government
- Acting with integrity – keeping promises that have been given
- Accountability and compliance with legislation and policy
- Following established procedural frameworks, such as the ‘staff follow function’ principle
- Ensuring adequate recordkeeping
- Ensuring appropriate delegations and Chief Executive’s Instructions are in place.
2.1 Whole-of-government approach
A key to achieving good results in implementing MOG changes is for agencies to take a whole-of-government approach. The need to take a cooperative and collegiate approach underpins the whole-of-government process whereby agencies are encouraged to work together across organisational barriers to achieve Government objectives. It is expected that agencies will communicate openly with one another, and with central agencies, to achieve the best outcome for the APS.
2.1.1 Good faith negotiations
Negotiations between the gaining agency and the losing agency should be undertaken in good faith, balancing equity and fairness for each agency against the need to achieve the best outcome for the APS.
The publication, Working Together: Principles and Practices to Guide the Australian Public Service (Australian Government 2005, at http://www.apsc.gov.au/mac/workingguide.htm), provides valuable information to assist agencies in this regard.
2.1.2 Open and honest identification of resource implications
The general principle of ‘staff follow function’ applies to MOG changes, as does the principle of ‘records follow function’.
While identification of programme funding and related staff can be relatively straightforward, mapping of support functions (e.g. corporate services areas) or mapping of functions or programmes that have been split can be more problematic. Agencies should recognise the need for cost sharing (e.g. sharing of fixed costs) and reach an agreement that will meet the test of reasonableness.
As well as identifying staff numbers, pay and conditions and funding, agencies need to comprehensively identify all resources, including details of staff on leave or temporarily reassigned, assets and liabilities, contracts registers, intellectual property (e.g. access to, and licensing arrangements for, relevant databases) and information and communications technology.
2.1.3 Timely and accurate exchange of information
Successful completion of activities is heavily dependent on the quality and timeliness of information—particularly staff numbers and funding information—the losing agency provides. At the earliest opportunity, losing agencies need to provide gaining agencies with detailed and current information about:
- structure charts and staffing lists, to aid understanding and estimating staff resource distribution in the losing agency
- affected programmes and policy responsibilities, most critically before negotiations on financial and other resource transfers take place
- all associated activities, such as service delivery arrangements, and their significance
- records and data documenting the functions that are being transferred
- existing audit issues
- existing budget measures.
In line with whole-of-government objectives, information should be shared and discussed as openly as possible.
2.2 Constructive and open communication with staff
To facilitate a smooth transition it is important to establish constructive and open communication with staff by providing early advice and assistance and by acting with integrity.
2.2.1 Providing early advice and assistance to staff
It is a feature of APS employment that staff can be moved from one APS agency to another (or into or out of the APS) as a result of a MOG change. The Commissioner can exercise powers under section 72 of the PS Act to give effect to an administrative re-arrangement. The general principle is that staff follow the function being transferred. Agencies should ensure all staff are aware of this by providing appropriate information prior to engagement and in induction or training programmes. Staff should be encouraged to identify both as employees of their own agency and as members of the APS more broadly.
A key issue in the smooth transition of staff from one agency to another is provision of open and timely information and assistance to affected staff to keep them up to date and informed.
2.2.2 Consultation
The Commissioner’s Direction relating to APS Value (i) on communication and consultation with employees provides that staff have appropriate opportunities to contribute their view on issues affecting their workplace while recognising agency heads’decision-making responsibilities.
Workplace systems and structures that enable staff to contribute their views and maximise their input to meeting organisational objectives underpin effective workplace relations.
Agencies should identify areas where there would be value in allowing staff to contribute to the implementation process, for example, in matters affecting their working environment such as accommodation and other transitional issues.
2.2.3 Acting with integrity
Communicating and consulting with employees requires good faith in order to build effective workplace relations. Agencies should ensure all decisions relating to staff, such as staff movements and accommodation, are carefully considered, and that commitments are not made to staff until the agency head is able to ensure they can be upheld.
2.3 Accountability and compliance with legislation and policy
It is vital to comply with legislation and policy and to be accountable and transparent by following established procedural frameworks, ensuring adequate recordkeeping and appropriate delegations are in place.
2.3.1 Following established procedural frameworks
The legislative and policy framework with which agency heads must comply is outlined in Foundations of Governance in the Australian Public Service. This document can be found at http://www.apsc.gov.au/foundations.
2.3.2 Ensuring adequate recordkeeping
Section 6 of this publication provides information on records management.
2.3.3 Ensuring appropriate delegations and Chief Executive’s Instructions are in place
It is essential that each agency review its instruments of delegation and authorisation to ensure they cover all matters and legislation to be administered by that agency.
In the case of a transfer of functions from one agency to another, delegations and authorisations of power to people in the losing agency will cease to have effect on the date the AAO becomes effective. New and/or interim delegations and authorisations will need to be made in favour of people performing the relevant functions in the gaining agency, recognising that those people performing the functions may still be in the losing agency for a period of time. New instruments of delegation and authorisation should be made without delay.
Section 4.7 ‘Delegations under the FMA Act’ provides advice on financial delegations and section 5.11 ‘Delegations and authorisations’ provides information on Australian Government Solicitor advice on delegations and authorisations following a general election.
Chief Executive’s Instructions (CEIs) are issued by the Chief Executive of an FMA Act agency under the authority of section 52 of the FMA Act and Regulation 6 of the Financial Management and Accountability Regulations 1997 (available at: http://www.comlaw.gov.au). These instructions provide operational guidance, focusing on the agency’s particular needs, in order to promote the efficient, effective and ethical use of Commonwealth resources.
Both losing and gaining agencies should review their CEIs to ensure that they reflect the MOG changes. For further information refer to: Finance Circular 2004/15: Chief Executive’s Instructions (available at http://www.finance.gov.au).
