Table of contents - Sport Australia...What does success look like for a sport? Digital A ‘whole of...

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Transcript of Table of contents - Sport Australia...What does success look like for a sport? Digital A ‘whole of...

Table of contentsIntroduction.......................................................................................................................3

Strategy..........................................................................................................................3

Whyisa‘wholeofsport’strategyimportantforeachlevelofthesport? 3Whatdoessuccesslooklikeforasport? 3Howdosportsachievethis? 4Whatistheintendedoutcomeofa‘wholeofsport’strategyandhowwillthisimprovetrustamongtherespectivebodies? 4Whatarethespecificcharacteristicsthatwouldbeassessedthatwilldetermineifasportisunifiedinstrategy? 5

DigitalandTechnology....................................................................................................5

WhyareunifiedbehavioursinDigitalandTechnologyimportantforeachlevelofthesport? 5Whatdoessuccesslooklikeforasport? 6Howdosportsachievethis? 7Whatistheintendedoutcomeofa‘wholeofsport’DigitalandTechnologyapproachandhowwillthisimprovetrustamongtherespectivebodies? 7WhatarethespecificcharacteristicsthatwouldbeassessedthatwilldetermineifasportisunifiedinDigitalandTechnology? 7

Commercial.....................................................................................................................8

Whydoesasportneeda‘wholeofsport’commercialframework? 8Whatdoessuccesslooklikeforasport? 8Howdosportsachievethis? 9Whatarethespecificcharacteristicsthatwouldbeassessedthatwilldetermineifasportisunifiedwithitscommercialframework? 9

FinancialManagement....................................................................................................9

Whyisa‘wholeofsport’financialmanagementsystemimportantforeachlevelofthesport? 9Whatdoessuccesslooklikeforasport? 10Howdosportsachievethis? 10Whatistheintendedoutcomeofa‘wholeofsport’financialmanagementsystemandhowwillthisimprovetrustamongtherespectivebodies? 10Whatarethespecificcharacteristicsthatwouldbeassessedthatwilldetermineifasportisunifiedinfinancialmanagement? 11

Introduction TheASChashistorically focusedonstructuralgovernance reformtodrive improvement inthe Australian sports sector. Following the implementation of the Mandatory SportsGovernancePrinciplesforthetop23fundedASCsports,andconsultationwiththesector,ithas been identified that the next key area of focus of governance reformwill be unifiedwholeof sport behaviours. The term ‘unifiedbehaviours’ reflects individual organisationsoperating for the common good of the entire sport; through unifying key behaviours, allentitieswillultimatelybenefit.

GovernanceReforminSportdetailsaunifiedapproachforsportsbyfocusingonintegratedbehaviours, processes and supporting systems. The ASC considers that these are mostcriticalintheareasofstrategy,digital,commercialandfinancialmanagement.Theseunifiedbehaviours, once adopted, will ensure that a unifiedwhole of sport approach is adoptedwhich will enable the sport to develop and execute participation and high performanceactivitiesforthebenefitofallmembersofthesportthroughoutAustralia.

Strategy

Why is a ‘whole of sport’ strategy important for each level of the sport? Regardless of the sport’s governance structure, strategy is the fundamental enabler forunifiedbehaviours.Anational‘wholeofsport’strategyenablesalllevelstooperatewiththesamepurposeanddirectionforthebenefitofthesportasawhole.Itenablesallinvolvedtohaveaclear,specificandinspiringunderstandingofwhatthesportaspirestoachieveand,importantly,howtheycollectivelyhelptoachievethis.

WhenanNSOengageswithmemberbodiesandotherkeystakeholderstoprovideinputintothe direction of the sport, the sport will collectively be more likely to develop a unifiednational direction, in turn assisting the delivery of the ‘whole of sport’ strategies. Theinvolvementofstateandlocalsportingaffiliatesalsoenrichestheplanbecausethesegroupsbringadifferentandvaluableperspectiveinthedeliveryofsportingopportunities.

What does success look like for a sport? • The ability to clearly communicate ‘whole of sport’ short, medium and long-term

objectives

• Stakeholders understand what is required to achieve the sport’s goals – this meansclearly spelling out the sport’s operating environment, its objectives, barriers toachievingitsgoals,strategiestoovercomethosebarriers,andtasksdelegatedeffectivelytoachievetheobjectives

• Provideasituationanalysisandcontext;aroadmaptoachieveobjectives;agapanalysiswhich identifies performance barriers and separates symptoms from the underlyingcauses

• Identifykeyrisksandprioritiesforresourceallocation

• Providestakeholderswithanaccountability framework in termsofwho isaccountableforeachgoal;therolesandresponsibilitiesofkeycontributors;andtheprocessorientedgoalsortargetswhichdefineandquantifyprogressbeingmadetowardsthemajorgoals

• Ensure alignment at all levels tomake certain that the right structures are inplace tosupport the key leaderswhohave the appropriate authority and resources to achievewhatisexpectedofthem

• Providealiving,breathingdocument,whichisreferredtofrequentlyandgivesdirectionandfocus

How do sports achieve this? • Leaders provide a clear and well-articulated purpose and vision for the whole of the

sport

• Engagementofcriticalpeoplethroughouttheprocess

• Earlyandfrequentconsultationwithpartnersandstakeholderstofacilitatebuy-in

• Ongoing,planned,formalandinformalmonitoringandreviewoftheunifiedstrategy

• Periodicindependentmonitoringandevaluationofprogressandperformance

• Promptanddecisiveresponsetoevidenceincludingoftheneedforchange

• Abilitytoprioritiseresourcestoachievecriticaloutcomes

• In linewith the unified direction,maintaining the flexibility for states to address localcontext,andapplyarelativeimportanceofobjectivesbasedonNSO/SSOrequirements

What is the intended outcome of a ‘whole of sport’ strategy and how will this improve trust among the respective bodies? Theaimofa‘wholeofsport’strategyistoensureall levelsunderstandhowtheworktheyare doing fits into the broader objectives of the sport. By continually involving all keystakeholders in thedevelopmentof the strategy, itengagesandmotivatesall in the sporttowardsachievingtheagreedunifiedoutcomes.Therespectivebodieswillalsohaveasenseofownershipover theplansandaremore likely toembrace the resultingdirectionof thesport.

What are the specific characteristics that would be assessed that will determine if a sport is unified in strategy? • Wastheplandevelopedwithsignificantengagementwithallkeystakeholders?

• Whereindividualplansexistacrossnationalandstatebodies, isthereconsistencywiththekeystrategicpillarsandperformancemeasures?

• Isthereregularmonitoringandevaluationoftheplanwithkeystakeholders?

Digital and Technology “Digital should be seen less as a thingandmoreawayofdoingthings. To helpmake thisdefinitionmore concrete,we’vebroken itdown into threeattributes: creatingvalueat thenewfrontiersofthebusinessworld,creatingvalueintheprocessesthatexecuteavisionofcustomer experiences, and building foundational capabilities that support the entirestructure.”(KarelDörner,McKinsey&Company)

Tosupportthis‘DigitalWorld’sportsmustadoptnewanddifferenttechnologies.

Why are unified behaviours in Digital and Technology important for each level of the sport? As technology adoption changes across Australia, customers' expectations of businesseshave increased. Customers expect high-quality communication, engaging content andseamlessonlineexperiences,aswellasinnovativemobilecommercetoolsandapplications.These influenceson the consumer landscapearehavingadisruptive impacton the sportssector.

Australiansarelookingtotechnologyplatformssuchasmobiledevices,wearablesandsocialmedia to connect with sports and sporting activities. These Australians are the fans,participants, elite athletes, administrators, volunteers and recreationalusersof sport. Thisnewwayofconnectingcreatesopportunitiestomarketandadvertisesportmoreeffectivelybutwiththisevergrowinglevelofdatabeingcreatedbysports,itmustadopttechnologieswhichenablethemtounderstand,leverageandwhereappropriatecommercialisethisdatatoremainrelevantintoday’sbusinesslandscape.

Perhaps the most important factor with digital disruption for sport is, just like otherindustries such as retail and accommodation, the consumer can create direct accesschannels to any level of sport. No longer do they need to call orwrite a letter, they canpublicly influence outcomes and become mass promoters/dissenters independent of thesport.Thisbehaviourhighlightsthegreaterneedwithinsportforconsistent‘wholeofsport’policies,businessrulesandsupportingtechnologies.

Managingthesetypesofintegratedconnectionsthroughvariousplatforms,althoughcritical,canbedifficultandexpensiveinisolation.Sportsworkingincollaborationwiththeirsystemcan adopt cutting edge technologies and therefore sharing the cost and revenue fromaligningsuchplatforms.

Themost crucial questionwith unilateral increase in data collection channels for sport is,who owns the data and who has rights to use the data. Essentially, data belongs to theindividual who on request provides permission subject to them being able to opt-out of

receiving any further communication. The sportmust provide a clear explanation ofwhatthedatawillbeusedfor,thisexplanation isnot limitedto justsponsormarketingbutalsootherusessuchas:

• Internalaccountingandadministration;

• Regulatoryreportingandcompliance;

• Providingbenefitstomembersthroughcommercialpartners;or

• Identifyingotherservicesthatmaybeofbenefittomembers.

As with all aspects of the sports system, each layer has a role to play in the Digital andTechnologyspacewithchangesimpactingeachlayerdifferently.Forexample:

Participant

The participant, more today than ever expects a seamless, easy and efficient ways ofregistering, paying, staying informed and managing their own data as this is provided totheminalmosteveryotherwayintheirlives.

Club

Communitylevelsportischallengedbyaneverincreasingandconfusingstableofplatformsacrosssocialmedia,commerce,membermanagementandcompetitionmanagement.Intheclubitself,volunteers,officialsandadministratorsrelyondigitalcapabilityintheirownlivesandincreasinglytheyexpectthisaccesstobeavailableattheclub.

SSO

The state level is generally responsible fordatamanagement, integrity anddistributionofinformationdirectlytotheclublevel. It isatthis levelthattargetedcommunicationsexistsand the management of digital and technology resources to deliver sport across theirjurisdictions isdeployed.SSOs faceallof the issuesdigitally theclub facesbutatonestepremovedfromtheparticipantaddingtotheneedfordigitalsolutions.

NSO

The NSO has the traditional role of interacting with athletes and stakeholders within theHigh Performance pathway where data management is imperative to success. ButincreasinglywiththeevolvingwaysinwhichAustraliansconnectandtheneedforclearandeffectivecampaignstopromotethesport,NSOscriticallyneedtoleadtheirentiresystemtoleverageefficiencyandcostsinbothdigitalandtechnologyresourcing.NSOsfacealloftheissues digitally the SSOs and Clubs face but again further removed from the participantaddingtotheneedfordigitalsolutions.

What does success look like for a sport? Digital

A ‘whole of sport’ digital strategy enabling seamless connection of customers, fans,participantsandstakeholderstotheentiresportinordertocreateasingleviewofasportscustomer.Thisisachievedthroughunderstandinghowandwhytheseconnectionsneedtohappenandthetechnologyneededtoenabletheseconnections.

Technology

• Integrated connected customer relationship management platform for all sportparticipants, including active and passive participants, competing and recreationalmembers, officials and volunteers, to inform strategy development and serviceprovision.

• Commonplatforms,database,anddecisionrightsthroughbusinessrulescompliantwiththePrivacyAct.

• Consistentcollection,distributionandanalysisofdataacrossthewholesport.

How do sports achieve this? • Development of a whole-of-sport digital strategy and roadmap to achieve technology

needs.

• Aroadmaptoachievetechnologyneedswithidentificationofpreferredplatforms,andmigrationontotheseplatforms.

• Creation of business rules on access to the database within the sport, includingagreementsonwhocancontactdatabasemembers.

What is the intended outcome of a ‘whole of sport’ Digital and Technology approach and how will this improve trust among the respective bodies? A ‘wholeofsport’DigitalStrategywithasubsequentTechnologyStrategywillprovidethesport with the roadmap to adopt capability driving outcomes for commercial, financialmanagementandparticipationgrowthacrosstheentiresport.

What are the specific characteristics that would be assessed that will determine if a sport is unified in Digital and Technology? • A Digital Strategy developed in consultation with users providing a roadmap for the

wholeofsporttoachieveitsrequiredtechnologyoutcomes.

• Technology such as a CRM or other platforms in place which aligns with the sportsDigitalStrategyandismanagedinaccordancewiththePrivacyActbyallusersprovidingasingleviewofthesportscustomer.

Commercial

Why does a sport need a ‘whole of sport’ commercial framework? A ‘whole of sport’ commercial frameworkwill help the sport tomanage and articulate itsvaluesandassetseffectively.Consistencyandmanagementstrengthensthebrand,creatingastrongerandmoreappealingvaluepropositiontoconsumersandcommercialpartners.

ByverticallyintegratingtheassetsfromtheNSOthroughtheSSOsandintoclubdeliveryasseen in theprofessionalsports,helpscreateaclear linearcommercial frameworkthatcanbetakentomarket,resultingin:

• Greateropportunitiestoattractandretainhighervaluesponsors

• Realisesignificantincreaseincommercialrevenuethroughaselectnumberofnationallyalignedassets

• MoneyflowingthroughtheNSOtotheStatesandClubs

• Reduced conflict between commercial partners: i.e., a car company is less likely tosponsoraSSOiftheNSOisalreadysponsoredbyarivalcarcompany

• The collection and collation of data for participants and audiences: a digital strategywould aggregate and clean the data from all the different bodies so that it can bemonetised

• CreatenationalproductslikeNetSetGo

• Theabilitytodemonstratereturnoninvestmenttosponsors.

What does success look like for a sport? Sponsorsseektoreachandengagetargetaudienceswithmeaningfulcontent,andtocreatepositivebrandalliancesattheexclusionofcompetitors.Therefore,successforsportsinthisspaceincludes:

• Brandingconsistencyacrosstheentiresport.

• A‘wholeofsport’commercialframeworkinplaceandagreedtobytheNSOandallstateassociationswhichprovides:

o Verticallyintegratedassetmodelthatmaximisesthecommercialvalueofassetsownedbythesport(rightsholder)

o Shared financial outcomes,with an underlying principle that states can be noworseoff.

o Brandintegrityandcontinuityinthemarketplaceforthesportandagreedsub-brandsforproducts.

o Transparency in the rights and obligations to the sport, including costs andbenefitsofallcommercialarrangements.

How do sports achieve this? • All major stakeholders contribute and commit to a nationally aligned commercial

framework, noting that categories will be available for exploitation nationally andcertainprotectedcategorieswillbeexploitedatstate/clublevels.

• TheNSOtoleadanauditofcommercialassetsacrossthesport.

• TheNSOtoleadanauditofexistingcommercialagreementsacrossthesport.

• Development of an overarching commercial framework identifying whole-of-sportproperties with exclusivity, and other properties states can sell in line with theframework.

• ThesporttodeveloparevenuesharingmodelacrosstheNSOandstates.

What are the specific characteristics that would be assessed that will determine if a sport is unified with its commercial framework? • VerticalintegrationofassetsfromtheNSOthroughtothestatesandintoclubdelivery.

• An NSO-led commercial approach which includes access to all state bodies and theirprograms.

• Notallsponsorshipagreementswillbeofferednationally,onlythosemostlikelytobeofmaximumvalueifofferedexclusivelyinacategorynationally.

• Smallercategoriescanpotentiallybemaximisedbylocaldeals.

• A signed MOU between the states and the NSO agreeing to the ‘whole of sport’commercialframework.

Financial Management

Why is a ‘whole of sport’ financial management system important for each level of the sport? • Provides an understanding of the whole-of-sport financial situation, including the

relativestrengthsandweaknessesofindividualstakeholders.

• Aidsdecision-makingwhenseekingtoidentifyandallocateresourcesto‘wholeofsport’strategicinitiatives.

• Allowsforpotentialefficienciestobeachievedthroughstreamliningofprocessesaswellastheadoptionofstandardpoliciesandsystems.

What does success look like for a sport? • Alignmentoffinancialyears,forecastingandbudgetperformancereporting.

• Integrated financial systems to streamline the operation of a sport’s financialmanagement.

• A standard chart of accounts that makes it easier and more efficient to present andcompareaccountinginformationacrossasport.

• Adoptionofcommonbestpractice financialmanagementpoliciesandprocedures thatresult in consistent treatment of accounting data and information at all levels of thesport.

• Asinglesetofconsolidated financial statements thatdetails the financialperformanceandpositionoftheNSOandallSSOs.

• Collective understanding of the benefit of a ‘whole of sport’ financial managementsystemwithanunderlyingprinciplethatstatescanbenoworseoff.

How do sports achieve this? • Conduct an assessment of current financial management arrangements within the

sport’s NSO and SSOs to identify gaps and barriers to a ‘whole of sport’ financialmanagementsystem.

• Designnew,alignedfinancialmanagementarrangements.Asexamplesthiswill includeagreeing a standard chart of accounts, IT system requirements, common policies andprocedures, and stakeholder roles and responsibilities formanaging and consolidatingaccountinginformation.

• Developadetailed implementationplan to transition to thenewarrangements,whichmayrequirethecreationofNSO-SSOservicelevelagreements.

• Monitor implementation and refine as appropriate in consultation with all keystakeholders.

What is the intended outcome of a ‘whole of sport’ financial management system and how will this improve trust among the respective bodies? • Provides a ‘whole of sport’ financial overview of the sport to support viability and

sustainabilityassessmentsofthesport.

• Disclosure of each stakeholder’s financial position and performance encouragestransparencyandreducesriskofmisconceptions.

• Potentiallyloweradministrationcostsfromimplementingintegratedarrangements.

• Adoption of best practice financial management practices and behaviours across thesport.

What are the specific characteristics that would be assessed that will determine if a sport is unified in financial management? • Financialbudgetingandperformance reporting that includes informationpresentedat

both‘wholeofsport’andstakeholderlevels.

• A single set of consolidated financial statements that combines the annual financialresultsfortheNSOandeachSSOtoproducea‘wholeofsport’financialreport.

• Adoptionofstandardfinancialmanagementpoliciesandproceduresacrossthesport.

• EvidenceofregularNSO/SSOmeetingstodiscussfinancialmatters.

• Agreedprocesstocreatealignedfinancialyearendsforallstakeholderlevels.