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Governing the City State - Chief Minister and Treasury Directorate ...

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Often, to avoid <strong>the</strong>se costs, business managers in <strong>the</strong> ACT Government, systemicallyunderestimate <strong>the</strong> complexity of ICT enabled projects <strong>and</strong> <strong>the</strong> need for specialisedproject management skills. Relatively junior administrative staff are nominated asproject managers for what are wrongly judged as “simple technology” projects,leading to poor project outcomes through delays <strong>and</strong> escalating costs.ICT workforce planning should be part of <strong>the</strong> m<strong>and</strong>ate of <strong>the</strong> proposed <strong>Chief</strong> <strong>Minister</strong>’sDepartment. This workforce planning requires a balance between permanent employees <strong>and</strong>contract staff, periodic decisions as to which ICT functions are best undertaken “in house”which should be delivered through partners <strong>and</strong> an acute awareness of <strong>the</strong> changingtechnological skill sets required. The planning will also include growing a skilled set ofbusiness resources that can parachute into a <strong>Directorate</strong> to assist or oversee projectmanagement on behalf of <strong>the</strong> client business area. This would reflect an approach alreadyimplemented in recognition of <strong>the</strong> growing challenges of ICT projects, by <strong>the</strong> Department ofEducation <strong>and</strong> Training which has created an Information Services Branch to providebusiness leadership to projects.Officials also advocated for a more flexible <strong>and</strong> tailored approach to procurement processes.Officials also heavily criticized <strong>the</strong> current funding model stating that <strong>the</strong> st<strong>and</strong>ard contractadministration fee (four per cent) charged by ACT Procurement Services for constructionprojects is excessive, not competitive with <strong>the</strong> private sector, <strong>and</strong> not in proportion to <strong>the</strong>level of resources allocated by Procurement Solutions to manage projects. Moreover, <strong>the</strong>regulatory <strong>and</strong> service delivery roles performed by Procurement Solutions are not separatelyidentified in <strong>the</strong> fee structure, something that needs to be rectified.The lack of clarity around Procurement Solutions’ role in procurement, contractadministration <strong>and</strong> project management is a core inhibitor of high quality services. Thesethree functions are fundamentally different, requiring different core skills <strong>and</strong> expertise.Officials from across <strong>the</strong> service have highlighted deficiencies in <strong>the</strong> operational “HR”systems – notably <strong>the</strong> failure to process long service leave, to respond to graduated return towork arrangements <strong>and</strong> provide detailed superannuation information on pay slips.Staff turnover <strong>and</strong> lack of training have amplified <strong>the</strong> challenges faced by Shared Services<strong>and</strong> identified opportunities for fur<strong>the</strong>r improvement in <strong>the</strong> areas of employee relations(particularly investigative st<strong>and</strong>ards), injury prevention <strong>and</strong> injury management.Critically, <strong>the</strong> operational deficiencies manifesting in <strong>the</strong> transactional functions of SharedServices are magnified by <strong>the</strong> lack of strategic policy stemming from <strong>the</strong> workforcecapability <strong>and</strong> capability functions.Consideration could be given to embedding Shared Services staff within <strong>Directorate</strong>s todevelop a better underst<strong>and</strong>ing of <strong>the</strong>ir core business.Capability, Capacity <strong>and</strong> Effectiveness: 293

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