Performance Development Framework (PDF) Review 2003 Original Treasury PDF Implemented

1. Performance Development Framework (PDF) Review • 2003 Original Treasury PDF Implemented • 2009 November reviewed PDF • Mercer commissioned to conduct PDF review January 2010

2. PDF Review • Mercer’s Brief: • Understand the current PDF Framework • Identify the effective components • Identify ineffective components • Develop a transition plan including: • Recommended changes • Priority areas of focus • Re-branding and re-launching • Benchmark against other jurisdictions

3. PDF Review • Mercer Undertook: • PDF documentation examination • Interviewed senior executives • Held focus groups with operational and policy staff • Conducted an all staff online survey • Provided report and recommendations

4. PDF Effectiveness Survey Results

5. Foundational Sophisticated ELEMENTS Link to Reward & Recognition Audit Objectives Ownership and Administration Process Goal Setting Measurement Link to Talent Management Documentation Communication Feedback Culture Training and Development Eligibility Links to Competencies Comparison against indicative public sector averages Operational Scale Definitions Foundational Foundational performance represents minimal attention to element attainment Operational Operational performance represents a level of functionality that is likely to have a noticeable impact on organisational performance Sophisticated Sophisticated performance represents exemplary attention to element design, development and implementation Indicative public sector average based on Mercer’s consulting experience Treasury’s relative level of element design and development Mercer notes that the above public sector average ratings are only indicative, based on Mercer’s experience in working with various public sector agencies over the past 20 years, in virtually all Australian jurisdictions.

6. Clearly define the purpose of the PDF and its scope Determine roles and responsibilities and ensure participants are held accountable for execution. Develop process maps for the new PDF and streamline / strengthen links to other HR processes. Establish appropriate “break through” or “stretch” goals and targets to create a outcome focused performance based culture. Key Findings and themes

7. Re-design and simplify PDF forms 6. Integrate PDF with business planning processes and other important HR programs and functions. Training program for supervisors and managers to effectively assess performance and provide feedback. Implement communication strategy to inform, lead and involve all staff in the PDF system. Key Findings and themes

8. Communicate rationale for change Implementation of the new Employee Development Framework Change Process Educate and Communicate Acknowledge the change Shape the political dynamics of change Motivate behaviours for change Align corporate processes • Demonstrate SMG and leadership commitment • Engage the right level of participation into planning and implementation • Outline the benefits of the new system • Reward the appropriate new behaviours • Send consistent signals through reporting systems and administration processes • Provide feedback on progress

9. Linkages to HR ProgramsWhere are the important linkages to other HR programs and priorities? Linkage to the organisation strategy Linkage to Rewards PerformanceReview Linkage to career decisions Linkage to individual development

10. Next steps: Complete new EDF format by mid August 2010 Conduct staff survey end August 2010 Assess survey results and incorporate into EDF processes Incorporate Capabilities Leadership Framework Levels into EDF Package. Current Status

11. Questions?