Implementing Machinery of Government Changes: A good practice guide

3 Planning

The impact on agencies resulting from MOG changes will range from being relatively minor to substantial. Major MOG changes often involve the transfer of functions from one agency to another either because portfolios are being restructured, or because an agency is to be created or abolished.

It is critical that agencies affected by a transfer of functions start planning implementation of the changes as early as possible. As part of the incoming Government brief, in the case of an election, agencies may wish to address the impact on their portfolio of any MOG changes outlined in Government and Opposition policy statements.

Agencies should contact the Commission and DEWR early to discuss staffing and workplace relations issues that are likely to arise, and should consult the relevant Agency Advice Unit (AAU) in Finance for advice on transfer of appropriations and other financial matters.

3.1 Establishing a steering committee

Gaining agencies should establish a suitably resourced steering committee with clear lines of accountability to oversee implementation of MOG changes.This will be a useful aid to managing the smooth transition of functions, staff and funding while ensuring business continuity.

While the need and scope for this may vary, depending on the scale of the MOG change, the committee could typically include representation from enabling areas (e.g. information technology, legal, finance, people management, property etc.) plus relevant programme managers responsible for receiving the functions. There may also be value in including representatives of the losing agency on the committee to advise on particular issues.

The committee could meet regularly during the transition period, provide advice to the executive, and plan for and coordinate implementation activities to assist in a smooth transition and the best possible outcome for all parties involved.

If needed, working groups reporting to the steering committee could be established to progress specific aspects of the change. For example, it may be useful to establish a small working group within the losing agency immediately after announcement of the MOG change to undertake an initial scoping exercise.

Issues the steering committee and/or subordinate working groups should consider could include:

clarifying respective roles of gaining and losing agencies in relation to the process
ascertaining whether functions will transfer in their current form or in a modified form
articulating the objectives to be achieved by the change
determining what the function’s new direction, core business, structure and staffing arrangements will be
ensuring key stakeholders are involved in the process
conducting due diligence activities associated with transfer of functions (see section 3.2)
developing a communication strategy (see section 3.3) to ensure employees are kept informed of transition arrangements
developing a people management strategy (see section 3.4) including developing realistic timeframes and mapping out differences in conditions of employment between the losing agency and the gaining agency
developing a project plan for implementation activities, including: transfer of finances (including, but not limited to, assets and liabilities) (see section 4) and employees (see section 5); information technology (see section 3.5); physical relocation to new premises if required (see sections 4.8 and 5); and transfer of digital and hardcopy records and data (see section 6)
conducting risk management
maintaining the general principles of natural justice (e.g. that decision-makers act fairly and without either perceived or actual bias)
identifying and quantifying the type and amount of appropriation to be moved from the losing agency to the gaining agency.

The purpose and respective responsibilities of participants in the steering committee and/or working groups should be clarified from the outset. A detailed checklist of responsibilities for gaining and losing agencies working together in special purpose groups is provided in Working Together: Principles and Practices to Guide the Australian Public Service.

3.2 Due diligence framework

Due diligence refers to the need to undertake a detailed examination of all aspects of the function being transferred, including its assets and liabilities, and statutory, contractual and other arrangements, with a view to identifying any issues which may need to be addressed. The steering committee should develop a series of questions or a checklist to ensure all necessary information relating to the activities of the transferred functions is gathered. The types of due diligence issues that should be addressed include:

assets and liabilities
register of all contractual arrangements and funding agreements, including property or equipment leases and provision of goods and services
partnerships or joint ventures
intellectual property issues
disputes and litigation
outstanding taxation matters
identification of existing specific delegated functions and authorisations necessary to ensure smooth transfer of functions
identification of whether specific programmes have a statutory basis or an administrative scheme without specific legislation
outstanding legal action, freedom of information requests and audit reviews (internal and/ or external).

3.3 Communication strategy

It is important to develop an appropriate communication strategy; and that the gaining agency head communicates details of the changes to all employees early in the process to ensure there is no misunderstanding of the reason for, and objectives and extent of, the change.

The approaches agencies should consider include:

conducting a series of meetings or information sessions for affected staff
providing regular email updates (from the gaining agency) to staff of both the losing and the gaining agency
establishing a website dedicated to the transition
establishing a telephone or email hotline to answer specific enquiries.

In some cases it may be beneficial to establish a dedicated communication team (or person) in the gaining agency to take responsibility for effective communication. Establishing a central point of communication will ensure staff do not receive conflicting information from the agencies involved. While the gaining agency might take responsibility for the overall communication strategy, the losing agency should also contribute.

3.4 People management strategy

The gaining agency should work together with the losing agency to develop a people management strategy to ensure a smooth transition for all affected staff. Section 5 provides details of the types of issues to be addressed.

3.5 Information and communications technology strategy

An information and communications technology strategy needs to be addressed early in the planning process as it may involve significant resources and time to implement.

Consideration should be given to:

downloading and re-loading databases, electronic mail and personal drives
diverting electronic mail and phone calls where necessary (generally only necessary if a function has many external stakeholders or where policy guidelines have recently been widely promulgated)
developing programmes to upload personnel data from the losing agency’s human resources system to the gaining agency’s human resources system
arranging for transfer of software (having due regard for any licensing issues) and hardware, including desktop computers, printers and file servers
whether novation of contracts relating to outsourced computer services is required
arranging for employees to transfer to the gaining agency’s systems and products, including provision of training, as required
updating gaining and losing agencies’ internet sites to reflect changes, arranging pointers from the losing agency’s site where needed
updating gaining and losing agencies’ intranet sites
creating new logons and email addresses
arranging for data and records to be transferred from the losing agency to the gaining agency and archived as needed
installing cabling and outlets in new accommodation
providing information on disaster recovery/business continuity plans.

3.6 Records management strategy

The gaining and losing agencies should work together to develop a records management strategy—section 6 provides further details.

Where records are held in physical format, gaining and losing agencies need to make arrangements for movement of records and update of systems that control those records, such as databases, spreadsheets or recordkeeping systems.

Where personnel areas hold forms such as attendance records, medical certificates and leave forms, these need to be transferred to the gaining agency.

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