A New Performance Management Framework

1 S E C T I O N O N E

A NewPerformanceManagementFramework

The Rationale for Change

1 C H A P T E R O N E

The Charter of Public Service in a CulturallyDiverse Society (the Charter) represents anationally consistent approach to ensuring thatgovernment services are delivered in a way thatis sensitive to the language and cultural needsof all Australians. It draws its rationale fromAustralia’s multicultural policy, which wasupdated in December 1999 as theCommonwealth Government’s statement A new agenda for multicultural Australia1

(New Agenda).

A new agenda for multicultural Australia

The New Agenda stresses the Government’scommitment to enhance and focus Australianmulticulturalism to:

• make it relevant to all Australians; and

• ensure that the social, cultural and economicbenefits of our diversity are fully maximisedin the national interest.

The New Agenda says:

The term Australian multiculturalism summarisesthe way we address the challenges andopportunities of our cultural diversity. It is a termwhich recognises and celebrates Australia’scultural diversity. It accepts and respects theright of all Australians to express and share their

individual cultural heritage within an overridingcommitment to Australia and the basic structuresand values of Australian democracy. It also refersspecifically to the strategies, policies andprograms that are designed to:

• make our administrative, social and economicinfrastructure more responsive to the rights,obligations and needs of our culturallydiverse population;

• promote social harmony among the differentcultural groups in our society; and

• optimise the benefits of our cultural diversityfor all Australians.

We have built a social infrastructure ofinstitutions, traditions and processes on ourdemocratic foundation. These are thefoundations of Australian multiculturalism.Cultural diversity is one of our great social,cultural and economic resources. Australian unityin this diversity is based on such moral values asrespect for difference, tolerance and a commoncommitment to freedom, and an overridingcommitment to Australia’s national interests.For multicultural Australia to continue to flourishfor the good of all Australians, multiculturalpolicies and programs should be built on thefoundation of our democratic system, using thefollowing principles:

• Civic Duty, which obliges all Australians tosupport those basic structures and principlesof Australian society which guarantee us our

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1 You can obtain a copy of A new agenda for multiculturalAustralia from the Department of Immigration and MulticulturalAffairs, PO Box 25, Belconnen, ACT 2616 or through its website: http://www.immi.gov.au

freedom and equality and enable diversity inour society to flourish;

• Cultural Respect, which, subject to the law,gives all Australians the right to express theirown culture and beliefs and obliges them toaccept the right of others to do the same;

• Social Equity, which entitles all Australiansto equality of treatment and opportunity sothat they are able to contribute to the social,political and economic life of Australia, freefrom discrimination, including on the grounds

of race, culture, religion, language, location,gender or place of birth; and

• Productive Diversity, which maximises forall Australians the significant cultural, socialand economic dividends arising from thediversity of our population.

The Government established the Council forMulticultural Australia to assist it withdeveloping and implementing a multifacetedplan of action to implement the New Agenda.

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The Charter is a key tool to assist governmentprograms to meet the needs of our culturallyand linguistically diverse society. It integrates aset of service delivery principles concerningcultural diversity into the strategic planning,policy development, budget and reportingprocesses of government service delivery —irrespective of whether these services areprovided by government agencies, communityorganisations or commercial enterprises.

These principles are:

• Access — Government services should beavailable to everyone who is entitled tothem and should be free of any form ofdiscrimination irrespective of a person’scountry of birth, language, culture, raceor religion;

• Equity — Government services should bedeveloped and delivered on the basis of fairtreatment of clients who are eligible toreceive them;

• Communication — Government serviceproviders should use strategies to informeligible clients of services and theirentitlements and how they can obtain them.Providers should also consult with theirclients regularly about the adequacy, designand standard of government services;

• Responsiveness — Government servicesshould be sensitive to the needs andrequirements of clients from diverselinguistic and cultural backgrounds, andresponsive as far as practicable to theparticular circumstances of individuals;

• Effectiveness — Government serviceproviders should be ‘results oriented’,focussed on meeting the needs of clientsfrom all backgrounds;

• Efficiency — Government service providersshould optimise the use of available publicresources through a user-responsiveapproach to service delivery which meetsthe needs of clients; and

• Accountability — Government serviceproviders should have a reportingmechanism in place which ensures they areaccountable for implementing Charterobjectives for clients.

The Charter also incorporates a best practiceguide for achieving and reporting ongovernment services. You can obtain a copyof the Charter from the Department ofImmigration and Multicultural Affairs, PO Box 25 Belconnen, ACT 2616 or through its web site: http://www.immi.gov.au

What is the Charter for Public Service in a Culturally Diverse Society?

The Charter’s performance managementframework

Since 1997, progress on implementing theCharter has been reported in access and equityannual reports. These reports are tabled inParliament by the Minister for Immigration andMulticultural Affairs. While there has beensignificant progress, there is a need for a morecomprehensive assessment of Charter outcomes.Qualitative progress on Charter outcomes can beassured when diversity management isembedded in portfolio agency performancemanagement processes. As a first step inachieving this, a draft performance measurementframework was included in the Access andEquity Annual Report 1999.

During 2000 the new framework has beenrevised and trialed in five agencies. The resultsof this trial are reported in Chapter 3 andAppendix A.

The Access and Equity Annual Report 2000signals an important evolution in theimplementation of the Charter. The Charterhas traditionally been viewed solely as a socialequity tool. While it has continuing relevance assuch, the New Agenda signifies a broader rolefor the Charter that encompasses the activepursuit of the benefits that diversity can bring.The National Multicultural Advisory Councilrecommended in its April 1999 report tothe Government that:

private and community sectororganisations consider how theAustralian Public Service values and the

principles of the Charter of Public Servicein a Culturally Diverse Society might berelevant to their diversity managementand planning processes, and developsimilar charters appropriate to theirspecific environment and the needs oftheir constituents, customers andemployees.2

The Government’s New Agenda indicated that,while government cannot be prescriptive aboutcharters or programs for the private sector,where benefit can be derived from adapting theprinciples of a government program to acompany’s operations, this ought to be pursued.The Council for Multicultural Australia isaddressing this.

The Charter performance management frameworkhas been developed as a tool to assist portfolioagencies to evaluate diversity management. Itdiffers from past reporting practices in that itseeks to identify outcomes achieved within fivecore government roles (policy adviser, regulator,purchaser, provider and employer). It asksportfolio agencies to report on their handling ofany business implications that arise whenlanguage and cultural diversity intersect with thework of the policy adviser, regulator, purchaser,provider and employer.

The performance indicators for the core rolesidentified in the Charter’s framework correlateclosely to the Charter’s principles. This can bemapped as follows:

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2 Australian multiculturalism for a new century: Towardsinclusiveness. You can obtain a copy of this report from theDepartment of Immigration and Multicultural Affairs, PO Box25, Belconnen, ACT 2616 or through its web site:http://www.immi.gov.au

During 2001 the framework will be furtherrefined in consultation with Commonwealthportfolio agencies and State, Territory and LocalGovernments. This will include discussion onhow best to integrate the framework with theCharter itself.


Table 1

Policy Adviser Regulator Purchaser Provider Employer

Access ✔ ✔ ✔ ✔

Equity ✔ ✔ ✔ ✔ ✔

Communication ✔ ✔ ✔ ✔ ✔

Responsiveness ✔ ✔ ✔ ✔ ✔

Accountability ✔ ✔ ✔ ✔ ✔

It is worth noting that the principles of effectiveness and efficiency are an intrinsic part of the broader mandate of all Commonwealthdepartments and agencies and as a consequence they have not been specifically targeted as part of the performance managementframework.

The NewFramework

2 C H A P T E R T W O

Achieving outcomes

The new performance management frameworkbuilds on the increasing focus, at aCommonwealth level, on individual portfolioagencies taking greater accountability forachieving defined outcomes.

Diversity management strategies must contributeto achieving corporate outcomes and the Charterperformance framework has been designed withthis in mind. Its purpose is to assist portfolioagencies to achieve the outcomes defined inPortfolio Budget Statements and it complementsexisting reporting tools such as departmentalannual reports, state of the service (workplacediversity) reports and client servicecharter reports.

Workplace and marketplace diversity is a realityand it makes sense to leverage this diversity. Theneed for practical diversity management tools forboth the private and public sectors to help themto use our diversity to derive economic and socialbenefits is clearly apparent from commissionedresearch, annual diversity reporting andanecdotal sources.

For instance, research commissioned by theDepartment of Immigration and MulticulturalAffairs shows that the vast majority of seniormanagers in the private sector acknowledge thatworkplace diversity (whether internal or external)can be a source of business strength. However,the research also highlights the general lack of

diversity management strategies and indicatesthat management thinking appears to treatdiversity more as a problem than as a resource.

In the Australian Public Service, departments andagencies are required to prepare workplacediversity plans and to keep data about and/orreport on a range of diversity related matters.The subject of such data and reporting embracesmany aspect of human diversity in the workplace— including disabilities, gender, language andcultural background, client demographics andstaff profiles.

Government programs serve the wholecommunity. Subject to the purpose and eligibilitycriteria of individual programs, they ought tobe inclusive. They ought to be available to allAustralians. They must meet the needs of ourculturally diverse society.

In relation to cultural and linguistic diversityinclusion means that portfolio agencies shouldaddress the disadvantages faced by certainindividuals in participating in Australian society(the most common barrier being effectivecommunication) and maximise the benefits ofthis diversity. Addressing disadvantage andmaximising the benefits of diversity areinvestments for the future. A fair society allowsindividuals to reach their potential and to makean increased contribution to society.

The Charter is a reminder to all public sectormanagers that they have a role to play in

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achieving and maintaining such a fair society.Appropriate diversity management strategies areone important indication that managers acceptthis responsibility.

Five core roles

The Charter is primarily concerned with ensuringthat government services are delivered with dueregard to the language and cultural backgroundsof clients. The main focus of implementing theCharter to date has been on the role of theservice provider, although the importance ofother roles has been highlighted from time totime. The new performance managementframework makes explicit the Charter-relatedresponsibilities of five core roles:

• policy adviser;

• regulator;

• purchaser;

• provider; and

• employer.

All portfolio agencies are employers, and all willhave at least one other role additional to that ofthe employer. The responsibilities of someorganisations may cover all five roles, and inmost cases the roles will be decentralised withinthe portfolio agency. Accountability is, therefore,widely distributed within organisations.

The performance management frameworkhighlights this accountability by pointing tohow each role assists in achieving governmentoutcomes, and by specifying performanceindicators.

The framework, including the performanceindicators, was trialed by five portfolio agenciesduring 2000 and revised in accordance with thefeedback received. Wide consultations atCommonwealth, State, Territory and LocalGovernment levels are planned for 2001.


Overview of the performance management framework

Role Performance indicators

The policy adviser is responsible for strategic • Appropriate consultation on policy/program planning and formulating new initiatives proposals.and/or revisions to current government • Potential differential impacts of policy programs and services in response to either proposals identified prior to decision.government policy, identified community • Policy/program proposals have an appropriate needs or both. communication strategy.

The regulator is responsible for implementing • Public information communicated to all the regulatory framework as designed by the Australians.policy function. • Regulatory compliance reporting is in

accessible mediums.

The purchaser ensures that funding is • Appropriate consultation on policy/program allocated on a basis that gives effect to the proposals.established policy framework. • Purchasing specifications are consistent with

the Charter.• Complaints mechanisms are sensitive to

language needs.

Providers of services also work within • Work processes are consistent with the established boundaries, often derived from the Charter.purchasing frameworks that accompany the • Data collections meet statistical standards on receipt of funds. diversity.

• Service standards address any differential impacts.

• Complaints mechanisms are sensitive to language needs.

All portfolio agencies undertake the role of • Corporate governance is consistent with the employer, involving the provision of a range Charter.of work conditions, including wages, in • Employment policies/practices are consistent exchange for the provision of labour to with the Charter.produce goods and services. • Learning programs include a focus on the

benefits of diversity.• Complaints mechanisms are sensitive to

language needs.

Detailed information on each of the core roles and the related performance indicators follows.

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Policy adviser

The roleThe policy adviser role involves developing thepolicy guidelines within which organisationsconduct their business. It is the policy adviserrole that considers the needs of different groupsand sectors and decides the desired impacts andresults (outcomes) that should be achieved forthe community. Common functions of the policyadviser role include but are not restricted to:

• determining and evaluating communityoutcomes;

• deciding broad priorities and developingpolicy parameters;

• managing long-term strategic planning3 forcommunity outcomes;

• holding purchasers accountable for theirperformance;

• being accountable to the community (throughParliament); and

• ensuring the appropriate legislative andregulatory framework is in place.4

Typically policy adviser functions would involvelittle direct interaction with members of thepublic in the form of service delivery operations.However, the policy adviser role has aresponsibility for initiating and developing policythat can directly affect service provision.

Achieving Government outcomesTo achieve the Government’s desired outcome ofaddressing disadvantage and maximising thebenefits arising from cultural and languagediversity, the policy adviser should:

• reflect the culturally diverse nature of thecommunity in the development and review ofpolicy advice including in analysing the rangeof needs;

• actively involve people from a variety ofcultural and linguistic backgrounds (forexample, migrant and Indigenousbackgrounds) in the policy development andreview process whether through directparticipation or via consultation;

• assess and quantify the differential impactsof policy directions on the lives of peoplefrom different cultural and linguisticbackgrounds in the Australian community inthe short, medium and longer term; and

• make publicly available policy informationaccessible, for example, by using ethnic andIndigenous media, translated information,interpreters or multilingual staff.

At times this role will involve taking on aleadership role and a pro-active approach to themanagement of emerging issues and needs.

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3 This includes the identification and specification of servicegaps, changing needs and emerging needs.

4 Funder, Owner, Purchase, Provider – Exploring the Concepts: AGMF Discussion Paper, FOPP Working Group, State Governmentof South Australia, June 1997, p10.

POLICY ADVISER

Performance indicator Performance measure Rating**

Indicator 1: New or revised policy/program Sampling* of new or revised policy/program proposals with a differential impact on the proposals to determine the extent to which lives of people from particular cultural and organisations:linguistic backgrounds are developed in • consider the differential impact of ❑consultation with people from those proposals in terms of the outcome, targetbackgrounds. and alignment of priorities of government

services using both qualitative and quantitative indicators;

• establish reference groups of people from ❑particular cultural or linguistic groups to inform the development of new/revised policy proposals;

• liaise with appropriate representative ❑organisations;

• use focus groups with representation of ❑individuals from a variety of cultural and linguistic backgrounds; and

• distribute discussion papers concerning the ❑proposals through established networks to reach people from particular backgrounds.

Indicator 2: New or revised policy/program Sampling* of new or revised policy/program proposals identify, prior to decision, any proposals to determine the extent to which differential impacts on the lives of people portfolio agencies:from particular cultural and linguistic • document the impact of policy on the lives ❑backgrounds. of people from particular backgrounds;

• use feedback gathered during consultations ❑from people and organisations representing a range of cultural and linguistic backgrounds to develop/modify proposals;

• use case studies of people from a variety ❑of backgrounds to highlight the differential impact of policies; and

• provide funds to facilitate access, such ❑as, interpreters for people who do not speak or read English.

(continued on next page)


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Performance indicator Performance measure Rating

Indicator 3: New or revised policy/program Sampling* of new or revised policy/program ❑proposals have an appropriate proposals to determine the extent to which communication strategy. portfolio agencies:

• use ethnic media and networks to ❑distribution information;

• use plain English to explain the proposal; ❑• translate policy/program information; ❑• use community leaders to disseminate ❑

information in particular communities; and• use imagery rather than text based ❑

communication.

* Note: The sampling strategy should ensure that corporate policy priorities identified in each portfolio agency’s business plan and the PortfolioBudget Statements are represented in the sample.

** Consultation about possible rating scales will be undertaken in 2001. Both numeric and descriptive scales will be considered.


Regulator

The roleThe regulator role5 usually involves theenforcement of legislation or other government‘rules’ which influence the way people behave.Regulations apply to all Australians and are notlimited to primary or delegated legislation, butalso include ‘quasi-regulation’ (such as codes ofconduct, advisory instruments or notes) wherethere is reasonable expectation by government ofcompliance.6 Authority for independent decisionmaking and administration may accompany thisfunction to support the separation of certainpowers from executive government. Common

functions of the regulator role include but are notrestricted to:

• compliance monitoring;

• performance reporting;

• accreditation;

• complaint management; and

• investigation.

Achieving Government outcomesTo achieve the Government’s desired outcome ofgovernment regulation that recognises thecultural and language diversity of Australiansociety, the regulator should:

• ensure information about the regulatoryprocess and associated specifications ispublicly available and in accessibleformats; and

• ensure that performance information isreadily available to the public and inaccessible formats.

5 Some examples of regulators include the Australian Securitiesand Investments Commission, Australian Competition andConsumer Commission and Department of Communications,Information Technology and the Arts.

6 Guidelines for Commonwealth Regulation Impact Statements,Office of Regulation Review.

REGULATOR


Indicator 1: Publicly available information Sampling* of communication strategies used on regulations and quasi-regulations is to convey information about regulations and communicated to all Australians, regardless quasi-regulations to determine the extent to of cultural or linguistic background. which organisations:

• have communication strategies that reach ❑people from a variety of cultural and linguistic backgrounds;

• use plain English and translated material; ❑• use interpreted information; ❑• distribute information through the ethnic ❑

media and networks;• use community leaders to inform members ❑

of particular communities; and• use imagery rather than text based ❑

communication media.

Indicator 2: Regulatory compliance Sampling* of publicly available reports to reporting is in accessible mediums for determine the extent to which organisations:all Australians, regardless of cultural or • have communication strategies for the ❑linguistic background. distribution of regulations that reach

people from a variety of cultural and linguistic backgrounds;

• use plain English and translated material ❑• use interpreted information; ❑• distribute information through the ethnic ❑

media and networks;• use community leaders to inform members ❑

of particular communities; and• use imagery rather than text based ❑

communication media.

* Note: The sampling strategy should ensure that corporate policy priorities identified in each portfolio agency’s business plan and the PortfolioBudget Statements are represented in the sample.


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Purchaser

The roleThe purchaser acts as an agent of the policyadviser. Having been advised of the outcomessought by the policy adviser, purchasersdetermine the precise outputs to be purchased(usually specified in terms of price, volume andquality) and nominate the providers who may bepublic, private or not-for-profit organisations.Common functions of the purchaser role includebut are not restricted to:

• determining conditions of effective servicedesign and delivery (price, quantity, quality,location etc) including the outcomes to beachieved;

• negotiating and contracting with providers forvolume and quality at best price;

• monitoring performance and appropriatenessof services being purchased; and

• encouraging competition between providers.7

Frequently, those who purchase services usemechanisms such as purchase contracts,memoranda of understanding, service level

agreements or partnership agreements. Thesemechanisms are usually supported byperformance monitoring and reportingrequirements.

Achieving Government outcomesTo achieve the Government’s desired outcomeof government purchasing that recognises thecultural diversity of Australian society, thepurchaser should:

• involve the views of people from anappropriate range of cultural and linguisticbackgrounds in the development of the tenderwhere a program may have a differentialimpact on the lives of people due to theircultural or linguistic backgrounds;

• ensure the specifications of both the tenderand purchase contract comply with theCharter; and

• ensure that the complaints mechanismsenable people from all cultural and linguisticbackgrounds to have their issues heard andaddressed.


7 FOPP Working Group, op cit p8. At times market forces mayrequire focus on establishing cooperation between providers toensure the required services can be provided rather than simplyletting market forces dictate.

PURCHASER


Indicator 1: Purchasing processes with Assessment of the major new purchasing differential impacts on the lives of people processes to determine the extent to which from particular cultural and linguistic portfolio agencies:backgrounds are developed in consultation • use reference groups of people from ❑with people from those backgrounds. particular cultural or linguistic groups to

inform the development of purchasing processes;



• liaise with appropriate representative ❑organisations;

• use focus groups with representation of ❑individuals from a variety of cultural and linguistic backgrounds; and

• distribute discussion papers concerning the ❑proposed purchasing specification through ethnic networks to reach people from particular backgrounds.

Indicator 2: Tendering specifications and Assessment of the tendering specifications and contract requirements for the purchase of contract requirements for major new purchasing goods or services are consistent with the processes to determine the extent to which Charter where there may be a differential portfolio agencies:impact on people from particular cultural • highlight the needs of people from ❑and linguistic backgrounds. particular backgrounds and seek a range of

strategies from providers on how to address such needs;

• specify in contracts data collection ❑standards and reporting requirements that enable the needs of people from particular backgrounds to be monitored; and

• ensure contracts require providers to ❑establish complaints handling mechanisms that can effectively respond to people from all cultural and language backgrounds.

Indicator 3: Complaints mechanisms Assessment to determine the extent to which enable people (irrespective of cultural and relevant purchase arrangements provide for:linguistic background) to address issues • the establishment of complaints/grievance ❑and raise concerns about the performance mechanisms;of purchasers and providers. • information on complaints handling ❑

processes and procedures in accessible formats;

• the use of interpreters to assist in the ❑complaints lodgement and hearing process; and

• analysis of the outcomes of complaint ❑processes in terms of cultural or linguistic factors.


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Provider

The roleProviders deliver the services they have beencontracted or mandated to provide underspecified conditions. Common functions of theprovider role include but are not restricted to:

• managing resources effectively to produceand deliver services as specified bypurchasers;

• developing and marketing (if appropriate)services to consumers/users and topurchasers; and

• ensuring viability of their organisations,financially and in relation to long termproductive capacity.8

Achieving Government outcomesTo achieve the Government’s desired outcome ofproviding services that recognise the cultural andlanguage diversity of Australian society, theprovider should:

• evidence an understanding of and a capacityto provide services to people from the rangeof cultural and linguistic backgrounds inAustralian society;

• provide access to culturally and linguisticallyappropriate services;

• have established mechanisms for qualityassurance and quality improvement in placewhich suit our multicultural society;

• have a service charter that defines the roles,responsibilities and accountabilities of boththe provider and consumer. Such a chartershould account for the needs of society inwhich there are people from a range ofbackgrounds;

• have established mechanisms for consideringconsumer satisfaction which suit the diversityof our society; and

• have established complaints handlingmechanisms to address concerns raisedby their consumers which suit ourmulticultural society.


8 FOPP Working Group, op cit, p8.

PROVIDER


Indicator 1: Providers have mechanisms for Assessment of the mechanisms for planning, implementation, monitoring and planning, implementation, monitoring and review of services that take into account the review across major functional areas to Charter principles. determine the extent to which portfolio

agencies:• consider cultural and linguistic diversity ❑

issues in strategic and operation plans of functional areas;

• develop strategies that provide accessible ❑information to individuals from all language and cultural backgrounds;



• establish consultative committees that ❑include people from a variety of backgrounds to advise on the provision of services and the development of new/revised policy proposals; and

• evaluate outcomes and undertake ❑research on the differential impacts of service provision.

Indicator 2: Data collection systems are in Assessment of data collection systems to accordance with the ABS Standards. determine the extent to which:

• provider data collection systems are in ❑accordance with the Standards for Statistics on Cultural and Language Diversity or portfolio agencies are taking action to comply with the Standards.

Indicator 3: Providers have service standards Assessment of provider’s service standards to that identify and respond to any differential determine the extent to which portfolio agencies:impact on people from particular cultural • monitor responsiveness of services to ❑and language backgrounds. ensure that customers receive appropriate

services;• tailor products to respond to the needs of ❑

particular cultural and language groups;• tailor workforce skills to better respond ❑

to the diverse needs of the client base;• include representatives of people from ❑

different cultural and linguistic backgrounds in customer councils; and

• analyse and evaluate the potential for ❑differential impact on people from particular cultural and linguistic backgrounds.

Indicator 4: Complaints mechanisms enable Assessment to determine the extent to which people (regardless of cultural and linguistic portfolio agencies:background) to address issues and raise • establish complaints/grievance mechanisms; ❑concerns about the performance of providers. • provide information on complaints handling ❑

processes and procedures in accessible formats;

• use interpreters to assist in the complaints ❑lodgement and hearing process; and

• analyse outcomes of complaint processes ❑in terms of cultural or linguistic factors.


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Employer

The roleAll portfolio agencies undertake the role ofemployer. The employment role usually involvesthe provision of a range of work conditions,including wages, in exchange for the provision oflabour to produce goods and services. Commonfunctions of the employer role include but arenot restricted to:

• development of employment policies andprocedures;

• recruitment and induction of new staff;

• staff training and development;

• individual performance monitoring;

• payment of wages and salaries; and

• human resource management.

Portfolio agencies are encouraged to highlightand promote the benefits which flow from adiverse workforce (the dividend approach), ratherthan to simply focus on programs to overcomedisadvantage (the deficit approach).

Achieving Government outcomesTo achieve the Government’s desired outcome forrecognising the cultural diversity of Australiansociety, the employer should ensure that:

• corporate governance mechanisms andprocesses give effect to the principlesunderpinning the Charter;

• employment policies and procedures fordepartments and agencies comply with therequirements of the Charter and any diversityrequirements of relevant legislation such asthe Public Service Act 1999 and theCommonwealth Authorities (EEO) Act;

• staff training and development programs(eg induction, supervisory, policydevelopment, contract management,client services) include information ondiversity and the benefits of effectivediversity management; and

• staff training and development programs areaccessible to employees from all cultural andlinguistic backgrounds.


EMPLOYER


Indicator 1: Corporate governance Assessment of corporate governance mechanisms and processes give effect arrangements to determine the extent to which:to Charter principles. • organisational values are consistent ❑

with the Charter ;• strategic and operational plans identify ❑

strategies that respond positively to cultural and linguistic diversity;

• organisational communication strategies ❑and mechanisms take into account cultural and linguistic diversity; and

• performance monitoring mechanisms take ❑into account cultural and linguistic diversity.



Indicator 2: Employment policies, procedures Assessment of new and revised employment and practices comply with the requirements policies, procedures and practices to of the Charter. determine the extent to which:

• employment practices are free of any form ❑of discrimination based on a person’s country of birth, language, culture, race or religion;

• employment policies and procedures are ❑communicated appropriately;

• employee data collection systems are in ❑accordance with the Standards for Statistics on Cultural and Language Diversity; and

• workforce planning strategies consider ❑the demographics of the organisation’s client base.

Indicator 3: Performance and learning Sampling of major learning and development programs give specific focus to strategies programs to determine the extent to which:to maximise the benefits of cultural and • programs highlight any differential impacts ❑linguistic diversity. due to cultural and linguistic factors;

• course design and curriculum incorporates ❑examples and case studies that reflect Australia’s cultural and linguistic diversity;

• learning programs take into account the ❑cultural and linguistic diversity of the workforce; and

• performance development systems have ❑strategies to promote and maximise the advantages of cultural and linguistic diversity.

Indicator 4: Complaints mechanisms enable An analysis of the complaints/grievances to employees (irrespective of cultural and determine whether:linguistic background) to address issues • there is any evidence of a differential impact ❑and raise concerns. due to cultural and linguistic background;

• information on complaints handing is in ❑accessible formats and interpreters are used in the complaints lodgement and hearing process; and

• complaints data collection systems are in ❑accordance with the Standards for Statistics on Cultural and Language Diversity.


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The New FrameworkIn Action

3 C H A P T E R T H R E E

With any new approach in

assessing and measuring

diversity management

performance it is important that

the framework is sufficiently

flexible and robust to account

for the wide range of roles,

responsibilities and functions

undertaken by departments

and agencies.

The framework has been developed to give eachorganisation opportunity to assess diversitymanagement in relation to its core business.The framework is not intended to be prescriptive;its focus is on achieving sustainableimprovements over time.

The trialing process

Trialing the framework was a critical part ofthe development process. It was necessary todetermine the framework’s ability to measurethose functions that have a real and directimpact on effective diversity management aswell as to assess its capacity to be appliedwithin a range of workplaces with differentpriorities and business activities.

The departments and agencies that participatedin the trialing phase were:

• Department of Defence;

• Centrelink;

• Department of Family and CommunityServices (FaCS);

• Australian Taxation Office (ATO); and

• Department of Immigration and MulticulturalAffairs (DIMA).

Each organisation:

• identified which of the core roles it performs;

• determined the areas within theirorganisation responsible for these functions(some organisations involved a range of areaswhile others concentrated on one or two);

• identified how the performance indicatorscould be linked into current performancemanagement systems eg data collectionprocesses, monitoring processes and reportingmechanisms; and

• implemented the performance measuresrelevant for each functional area.

Brief descriptions of the core roles covered byeach organisation participating in the trialingphase can be found in Appendix B. The rolestested by each organisation are listed in thetable below.

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The information analysed in the trialing phase issummarised in Table 3.

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Table 2

Policy Adviser Regulator Purchaser Provider Employer

Defence ✔

ATO ✔ ✔

Centrelink ✔ ✔

FaCS ✔ ✔

DIMA ✔ ✔ ✔ ✔

Note: The roles tested by individual organisations should not be regarded as the only roles undertaken by the organisation — they are asample used for the purposes of refining the performance management framework.

Table 3

Role Examples

Policy Adviser DIMA – Australian Multiculturalism FaCS – Commonwealth Disability StrategyFaCS – International Agreements FaCS – Welfare Reform

Regulator ATO – Excise

Purchaser DIMA – Integrated Humanitarian Settlement StrategyDIMA – Adult Migrant English ProgramFaCS – Family Relationships ProgramFaCS – Disability and Carers SupportFaCS – Community Program

Provider DIMA Centrelink

Employer DIMADefenceCentrelinkATO – Excise

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As a strategy for reviewing welfare policy, anindependent Welfare Reform Reference Groupwas established to explore options forimproving the welfare system. The Group wasasked to address two main issues:

• ways in which welfare arrangementscan help prevent the problems that resultin people needing assistance in the firstplace; and

• how welfare recipients can best be helpedto improve their capacity for self-reliance sothat they can reduce either their extent orduration of welfare dependency.

The Group was assisted by FaCS in theconsultation process. This included:

• public submissions made to the Group inresponse to advertisements placed in the

national and regional press in late October1999. The total number of submissionsreceived from members of the public andorganisations was 366;

• 17 submissions received from organisationsspecifically representing people frommigrant backgrounds;

• the Group met bilaterally with over 25 keynational peak representative groups duringthis time, including with three specificallyrepresenting people from particular culturaland linguistic backgrounds; and

• over 315 individuals and organisationsprovided comments on the interim report viaa feedback questionnaire including six fromorganisations representing people frommigrant backgrounds.

A case study — Policy Adviser

Department of Family and Community Services

The ATO has regulatory responsibilities as acollector of around $19.8 billion per annum inexcise revenue from payments by thepetroleum, tobacco, beer, spirits and crude oilindustries. Information on regulations andquasi-regulations is communicated to allAustralians, regardless of cultural or linguisticbackground through a communication strategy.This strategy includes:

• the provision of information on excisematters on the ATO Assist website. Clientscan ask questions online or requestinformation by facsimile (‘Fax from Tax’) forthe cost of a local call;

• Call Centre staff receive induction trainingon how to use the Translating andInterpreting Service;

• plain English brochures provide potentialclaimants with information on how to claima grant or rebate;

• the development of close links with industryorganisations and associations. Most haveestablished advisory forums with industryrepresentation. The forums ensure thatpolicy information is accessible and publiclyavailable and that forum members areactively involved in the policy developmentand review process; and

• consultation with ATSIC and localIndigenous communities to determine theimpact of the new Diesel Fuel RebateScheme on Aboriginal communities,especially in relation to electricitygeneration.

A case study — Regulator

Australian Taxation Office

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DIMA purchases services under the IntegratedHumanitarian Settlement Strategy (IHSS). Thestrategy is a national framework for bettertargeting and integrating settlement servicesfor humanitarian program entrants. Thepurchasing of individualised case managementservices from providers ensures that thespecial needs of these entrants are met.

The Review of Material Assistance toHumanitarian Program Entrants conducted inearly 1999 carried out community consultationsand sought submissions from the community onlinking humanitarian entrants with theappropriate settlement services.

The IHSS contract requires the provider toconduct client satisfaction surveys to elicitfeedback on the extent to which the servicemeets output specifications and standards andcomplies with the service principles. As part of quality assurance, the Department reservesthe right to conduct random inspections of theaccommodation provided to entrants.

In July 2000, DIMA prepared and circulated fordiscussion a paper on Community Support forRefugees, a component of the IHSS. The paperasks some critical questions about thepotential exploitation of humanitarian entrantsand the need for a code of conduct forCommunity Support for Refugees groups.

All services purchased must conform to theIHSS service principles. These principles arecomprehensive in their coverage of diversityissues. For example, services are designed andadministered so as to promote humanitarianprogram entrants’ mobility and level ofindependence. Furthermore, the purchasecontract requires liaison with the relevant state and territory members of the NationalForum of Services for Survivors of Torture andTrauma to ensure integration and appropriatedelivery of services.

A case study — Purchaser

Department of Immigration and Multicultural Affairs


Centrelink Customer Service Centres provide arange of customer services including incomesupport payments on behalf of a numberof government departments. Centrelink’scustomers include retired people, families, soleparents, people looking for work, people with ashort term incapacity, people with a disability,students, young people, Indigenous people andmigrants. More than 1 million of Centrelink’scustomers were born in a non English speakingcountry. To reflect this customer base,Centrelink has the following strategies:

• when providers are planning, implementing,monitoring and reviewing services, they takeaccount of Charter principles;

• provision of a range of language services(interpreting and translating). Theperformance standard is that 95 percent

of requests for interpreters are metwithin three working days. The currentperformance is 99 percent;

• provision of a National MultilingualCall Centre;

• provision of a range of multilingualcommunication strategies to customers —in person, through printed material, ethnicpress, community and SBS radio, and via theInternet in up to 42 languages; and

• consultative forums are held at local, stateand national levels on multicultural services.The forums are used to seek feedback onperformance standards and to ensureservice delivery and development isinclusive regardless of cultural andlinguistic background.

A case study — Provider

Centrelink

As an employer the Department of Defence hasa number of corporate policies and initiativesthat give effect to the principles underpinningthe Charter. For example, the Equity andDiversity policy instructions and the policyinstructions for preventing, managing andeliminating unacceptable behaviour bothprovide advice on equity, efficiency andeffectiveness.

The Department’s Employee’s IndustrialAgreement 2000–01 commits Defence to helpprevent and eliminate discrimination on thegrounds of race, colour, sex, sexual preference,age, physical or mental disability, maritalstatus, family responsibilities, pregnancy,religion, political opinion, national extractionor social origin.

The Defence APS education and trainingprogram adopts a case management approachwhere a nominee identifies as having specialneeds. The program ensures a range ofdifferent strategies are employed in the designof learning programs. In addition, the languageused in learning programs is appropriate anddoes not give offence to people from particularethnic, religious, or linguistic backgrounds. Theexamples and case studies used reflect thediverse makeup of the workplace and avoidstereotyping.

During the last financial year Defence has hadthree complaints made under the RacialDiscrimination Act and no formal grievances onthe basis of cultural or linguistic background.

A case study — Employer

Department of Defence

Relevance of core roles

In the main the trial group found that it was moreeffective to determine core roles at theorganisational level. An organisational perspectivewas seen to have the following advantages:

• strategies could then be more readilyidentified on how best to engage keyorganisational areas in measuringperformance; and

• more streamlined data collection strategiescould be developed and more broad basedsampling strategies established.

Overall, a performance management frameworkbased on core public sector roles was seen toencourage a much more comprehensive view ofthe organisation’s performance.

Application of the framework

To ensure that the framework can be appliedeffectively, the commitment of all staff, butespecially senior staff, is critical. Managementplays a crucial role in applying the framework today to day operations.

Performance monitoring areas withinorganisations also have a key role to play in thisprocess. They are able to identify how theframework can be integrated with theorganisation’s own performance monitoringprocesses and are often responsible forestablishing data collection systems to supportperformance reporting.

Preliminary results to date

The new performance management frameworkwas seen to have high acceptance withinorganisations — with the linkage of performancereporting to core business activities seen as amajor strength. In addition, the clarity offered bythe framework in providing guidance on what to

report was understood to be beneficial and animprovement on past reporting requirements.

The preliminary findings highlight the potentialbenefits that can be achieved from such anapproach. In addition, the feedback receivedprovides invaluable guidance in further refiningthe performance management framework so asto ensure its relevance and applicability invarious work settings.

Interpretation of results

The following, necessarily tentative,interpretation of the results has been derivedfrom: the trial (see Appendix A); the goodpractice examples from portfolio agencies notinvolved in the trialing (see Chapter 5); and theexperience of past years as reported in accessand equity annual reports. Where necessaryinformation was derived from bilateral meetingsbetween DIMA and other portfolio agencies. In some cases, conclusions are drawn from thelack of reported information.

Aside from reporting on the trialing of theCharter’s performance management framework, a key aim of the 2000 annual report is to developa preliminary assessment of current performanceagainst each of the five core roles. Because thetrial was somewhat limited in scope — it testedonly a sample of functions in five portfolioagencies — there is a degree of subjectivejudgement in these assessments. As the process develops in future years, it should yield assessments which give a surer indicationof performance.

Policy adviser: Policy advisers do not appear toroutinely factor language and cultural diversityissues into their deliberations, except where thepolicy is directed primarily at migrant orIndigenous groups. The overwhelming majority ofthese cases involve programs aimed ataddressing a perceived disadvantage.

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Consultation and communication strategies,where reported, appear soundly based, althoughlimited to the principal target group. There isinsufficient data to gauge if policy advisersroutinely consider the possibility of any potentialdifferential impacts of policy proposals onparticular groups.

Regulator: Regulations apply to all Australiansand key regulatory agencies have a good recordof factoring language and cultural diversity intotheir communication strategies. These strategiesappear to be embedded in normal businessprocesses.

Regulators appear to meet the Charter’sperformance indicators to a fairly high degree,although little is known about regulatoryfunctions that constitute a small proportionof a portfolio agency’s work.

Purchaser: There are many different types ofpurchasing. In many cases it would not benecessary to consider language and culturaldiversity issues in the purchasing process. Inother cases, for instance where a service hasbeen outsourced and is being purchased undercontract arrangements, diversity issues could bequite important and such purchasers appear tobe generally aware of this. A proper assessmentcannot be made, however, without access to arepresentative sample of contracts.

Provider: Service providers who manage across-the-counter types of services appear to begenerally aware of the demographics oftheir clients. Those in the social and welfare

areas typically have very well developedcommunication strategies that take properaccount of the English language proficiency oftheir clients. Strategies are utilised to bothmeet client needs and to achieve operationalefficiencies. Some business related programsmake conscious efforts to leverage diversity.Little is known about other service providers,since they tend not to report in the context ofthe access and equity annual report.

Social and welfare service providers generallymeet the Charter’s performance indicators, andsome business service providers make aparticular effort to broaden service coveragewhen it is linked to increased business activity.

Employer: Many corporate planning documentsinclude references to diversity management.Staff with employer responsibilities seem to begenerally very conscious of language and culturaldiversity and can readily point to good practiceexamples of responding to this diversity. Moredata and analysis is required, however, todetermine what proportion of such corporategovernance arrangements have Charter principlesembedded in them. The good practice examplesprovided are typically designed to addressdisadvantages, including by seeking to overcomeEnglish language proficiency barriers. No data iscurrently available to determine the extent towhich portfolio agencies use employer functionsto leverage workplace diversity for corporatebenefit. However, there are examples in thisreport of recruitment policies and strategies toretain particular staff to increase the capacity tobe responsive to particular clients.


The Next Steps

4 C H A P T E R F O U R

Lessons learnt in the trialing

Trialing the Charter’s performance managementframework in the five portfolio agencies providedmuch valuable information, as a direct result ofwhich, the framework document was simplifiedand a number of performance indicatorswere amended.

The trial also pointed to the imperative of linkingthe management framework to existing corporateoutcomes reporting processes, and of articulatinga cogent business case for developing theCharter’s framework.

Outcomes reportingA key part of the rationale for developing theCharter’s performance management frameworkwas to ensure that the Charter principles addvalue to the work undertaken to achievecorporate outcomes.

The trial confirmed that a considerable amountof useful performance information could begenerated by assessing the impact of Charterprinciples on departmental operations. Portfolioagencies are required to define their outcomesand outputs in the Portfolio Budget Statements(PBS). They are held publicly accountable forachieving these outcomes and are resourced toachieve them through purchasing agreementsthat have been (or are being) negotiated withthe Department of Finance and Administration.In short, the outcomes identified in the PBS

summarise the organisation’s core corporatebusiness.

It is important that the performance indicatorsfor the Charter are directly linked with agencyprocesses for determining performanceindicators, and that responsibility for Charterframework reporting is embedded in normalperformance management processes.

Identifying new performance indicators can be alengthy process and it takes time to build upnew performance information. Where Charterframework reporting entails new measurements,these ought to be developed as part of theportfolio agency’s overall reporting processes.

The most important assessment of performancefor portfolio agencies is the extent to which thecorporate outcomes defined in the PBS areachieved. The trial has highlighted, however, theneed for subsidiary measures. In the case of theCharter, such a measure would be the extent towhich the organisation leverages language andcultural diversity in achieving its corporateoutcomes. This would include assessing howit addresses its customers’ needs.

Diversity management toolsWhere diversity raises issues of businessimportance, management typically looks forguidance or tools to implement a suitablediversity management strategy. The Charter’sperformance management framework is oneof these tools.

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A number of other diversity management toolsand case studies have been, and are being,developed within the Productive DiversityPartnerships Program managed by theDepartment of Immigration and MulticulturalAffairs (DIMA). The Program began in 1999 whenDIMA commissioned a series of research projectsby business educators, in partnership withleading corporations, into various aspects ofdiversity management. The results of thisresearch were presented to the 21st CenturyBusiness — Delivering the Diversity Dividendconference in Melbourne on 13–14 November2000. The conference outcomes are beingfurther developed with a view to producingcurricula material and a range of practicaldiversity management tools. The wealth ofinformation and analysis generated by theProgram will be used and built on in as manyways as possible.

A crucial research finding of the PartnershipsProgram is that Australia’s Chief Executives rankinternal efficiency as the most important strategyfor their company. An effective diversitymanagement strategy is a pre-requisite foroptimising internal efficiency.

The outcomes of the Charter performancemanagement framework and the ProductiveDiversity Partnerships Program are to be furtherdeveloped during 2001.

Consultations

In early 2001 there will be a wide-rangingconsultation on the Charter’s performancemanagement framework. The consultations willbe managed through the InterdepartmentalCommittee on Multicultural Affairs, chairedby DIMA.

This will include discussion aboutimplementation strategies and what baselinedata can realistically be reported on in the 2001

access and equity annual report and built upon infuture years. Discussion will also be needed onhow best to integrate the performancemanagement framework with the Charter.

Review of annual reporting

The New agenda for multicultural Australiapointed to a strong link between the effectiveutilisation of diversity in the workplace andeffective client service to a diverse community.The Government’s approach to diversitymanagement incorporates both an organisation’sworkforce and its clients. It is committed toreviewing the reporting responsibilities foraccess and equity (by DIMA), client servicecharters (by the Department of Finance andAdministration) and workplace diversity (by thePublic Service Commissioner). This review will becommenced in early 2001 and will take intoaccount the differing functions andresponsibilities of these organisations, thevarying accountability obligations on which thereports are based, the varying aims andcoverage of the reports and the differinginterests of stakeholders in them.

While the review may make recommendationsabout how portfolio agencies report on theirdiversity management responsibilities, it doesnot signal a lessening of the Government’scommitment to the Charter’s principles.The review will give active consideration to arange of accountability options, including theincorporation of diversity managementconsiderations in auditing guidelines.

Standardised statistics

In order to evaluate the inclusiveness ofgovernment policies and programs it is crucialthat portfolio agencies have access to robustdata concerning cultural and language factors,including levels of English proficiency. InNovember 1999 the Australian Bureau of


Statistics (ABS) published Standards forStatistics on Cultural and Language Diversity.9

The Standards provides guidance in thecollection and analysis of information relating tothe origins of individuals and cultural diversity.

Indicative implementation timeline

The following table summarises planned futuredevelopment of the Charter’s performancemanagement framework.

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9 Copies are available from the ABS (ABS Catalogue Number1289.0) or through the ABS website www.abs.gov.au

Table 5

Year Action to be undertaken by portfolio agencies

2001 • Examine corporate performance reporting processes for consistency with the Charter’s performance management framework.

• Supplement corporate performance indicators, where necessary, to include those in the Charter.

• Test performance indicators in key areas of the organisation.

2002 • Build the Charter performance indicator information into regular corporate planning processes and performance reports.

• Ensure that all key areas consider and, where appropriate, report against Charterperformance indicators.

• Assess extent to which Charter performance indicators are contributing to corporate outcomes.

2003 • Reassess Charter performance indicators for appropriateness.• Assess extent to which Charter performance indicators are contributing to corporate

outcomes.

A New Performance Management Framework

Health & Medicine

Transcript of A New Performance Management Framework