Purpose
- This circular highlights the key issues that an agency should consider when implementing Machinery of Government (MoG) changes with a view to the delivery of fast and efficient outcomes.
- More detailed information is available in the joint Australian Public Service Commission (Commission) and Department of Finance (Finance) guide Implementing Machinery of Government Changes.
Overview
- To support the Government's priorities, MoG changes should be implemented as quickly as possible. They should focus on achieving the best outcomes for the Australian community across the whole-of-government.
- The Government expects MoG changes to be implemented cooperatively and in a timely manner. The agency heads involved are responsible for meeting any deadlines set for the MoG change.
- The Department of the Prime Minister and Cabinet (PM&C), the Australian Public Service Commission (Commission) and the Department of Finance (Finance) will set milestones, as appropriate, to assist agencies with their planning.
- Leaders involved in implementing a MoG change should adopt a risk management approach and avoid letting relatively minor issues delay the resolution of the major areas of negotiation.
- Agencies are encouraged to consider appointing an external third party as an independent facilitator to manage the MoG process and arbitrate on issues that require resolution.
- Agencies should conduct an immediate and thorough due diligence exercise to identify complex issues early.
- Agencies should share all relevant information to inform the due diligence process. Finance may share with affected agencies relevant data from the Central Budget Management System.
Dispute resolution
- PM&C, Finance and the Commission must be advised of any delays in finalising negotiations. In particular, they must be advised if the designated timeframes may not be met.
- Finance and the Commission will, if required, manage milestones and assist in mediating between affected entities as part of the dispute resolution process.
- Where agencies experience difficulty in resolving differences, it is expected that agency heads and Secretaries of the respective portfolio departments will become directly involved.
- Where agreement on the final allocation of resources cannot be reached within the required timeframe, then the matter must be escalated to a committee comprising the Secretaries of Finance and PM&C and the Australian Public Service Commissioner, with the Secretary of PM&C chairing discussions. This committee will arbitrate as required.
- In circumstances where issues remain unresolved it is open to Finance to transfer funds and the Australian Public Service Commissioner to transfer staff, if necessary, without the agreement of agencies.
Principles
- Senior leaders and their agencies must implement MoG changes consistent with the following principles:
- Taking a whole-of-government approach across agencies
- Good faith negotiations
- Open and honest identification of resource implications
- Timely and accurate exchange of information.
- Constructive and open communication with staff
- Provide early advice and assistance to staff
- Consult—employees have opportunities to contribute to the implementation process within the boundaries of the decision/s taken by Government
- Act with integrity.
- Taking a whole-of-government approach across agencies
- Accountability and compliance with legislation and policy
- Follow established procedural frameworks, such as the 'staff follow function' and 'finances follow function' principles whilst taking account of reforms such as shared services
- Ensure adequate records management.
Guidance for practitioners
- Information for practitioners on implementing a MoG change is available at Implementing Machinery of Government Changes (September 2015). The document is currently under review and will be published as a more user friendly, concise and easy to read resource.
Further information
- Further information about:
- financial management is available from Finance's Annual Appropriations team at AnnualAppropriations [at] finance.gov.au.
- people management is available from the Commission's Staffing Policy team at staffingpolicy [at] apsc.gov.au.
Karin Fisher
Group Manager
Employment Policy Group
Australian Public Service Commission
21 September 2015