Standards Australia's New Business Model PSF Sydney 2009

May 2009

Adrian O’ ConnellGeneral Manager – Operations, Standards Australia

Presentation Context and Objectives

Introduction to Standards Australia

Overview of New Business Model

Update on WaterMark Scheme

Questions

Standards Australia A Not-For-Profit Company – Membership based; Government; Industry; Community

Standards Australia (SA)

National Association of Testing Authorities (NATA)

National Measurement Institute (NMI)

Joint Accreditation System – Australia and New Zealand(JAS-ANZ)

Australia’s Technical InfrastructureBodies

Recognised as peak standards body by Australian Government

Pre 2003– Developer voluntary standards– Publisher of standards– Certifier of compliance– Provider of standards education services

Post 2003 – separation of publishing and certification

activities from peak body and standards development role

StandardsAustralia

StandardsAustralia

Strategic Challenge Post 2003

Strategic challenge for Standards Australia post 2003 separation from SAI Global:

– Maximise the value of our contribution to the net public benefit of Australia

– Do so within a framework of long term sustainability

» Maintain value of corpus in perpetuity

Challenges driving NBM

Demand for Australian Standards and related international engagement beyond our finite resources

600 committees generating projects; 1,400 active projects of varying size and complexity; not all progressing to satisfaction of stakeholders

No systematic assessment and strategic prioritisation process.

Resources not distributed equitably across all sectors of economy

No effective project or resource management

Need to clarify, define and resource roles of Standards Australia.

STANDARDS DEVELOPMENT

ACCREDITATION

NATIONAL STANDARDS

OFFICE(NSO)

NATIONAL STANDARDS

OFFICE(NSO)

STANDARDSAUSTRALIA

STANDARDS DEVELOPMENT

(SA-SD)

STANDARDSAUSTRALIA

STANDARDS DEVELOPMENT

(SA-SD)

AUSTRALIAN INTERNATIONAL DESIGN AWARDS

(AIDA)

AUSTRALIAN INTERNATIONAL DESIGN AWARDS

(AIDA)

ACCREDITATION BOARD FOR STANDARDS

DEVELOPMENT ORGANISATIONS

(ABSDO)

ACCREDITATION BOARD FOR STANDARDS

DEVELOPMENT ORGANISATIONS

(ABSDO)

Standards Development Committee

(SDC)

Standards Development Committee

(SDC)

Production Management Group

(PMG)

Production Management Group

(PMG)

Australian Design Advisory

Committee

Australian Design Advisory

Committee

SectorOperating

Plans

SectorOperating

Plans

National Standards Advisory Committee

(NSAC)

National Standards Advisory Committee

(NSAC)

Standing and Project Based Committees

Standing and Project Based Committees

Cross Sector Forums Regional and International

Coordination Groups

Cross Sector Forums Regional and International

Coordination Groups

Audit, Review and Appeal

Audit, Review and Appeal

Standards AustraliaBoard

Standards AustraliaBoard

Council and MembersCouncil and Members

Coordination GroupsCoordination Groups

NEW STANDARDS AUSTRALIA

NEW STANDARDS AUSTRALIA

Standards AustraliaStandards AustraliaSTANDARDS

INFORMATIONAND

COORDINATION

DESIGN ASSESSMENT

ANDPROMOTION

STANDARDSSTANDARDSDEVELOPMENTDEVELOPMENT

Watermark

Introducing a New Business Model - April 2008Introducing a New Business Model - April 2008

Stakeholder Engagement

and

Issues Identification

We are changing the way we engage with industry, community and government through sector based strategic relationship management

Twelve industry sectors covers Australian economy

Agriculture, Forestry, Fishing and FoodMiningManufacturing and ProcessingBuilding and ConstructionElectrotechnology and EnergyWater and Waste ServicesTransport and LogisticsHealth and Community ServicesConsumer Products and Services; Consumer SafetyCiTECEducation and Training ServicesPublic Safety, Public Administration and Security

Net Benefit Assessment

Net Benefit is the measure to prove the case for the development of an Australian Standard

Imposts vs benefits of Standard

"having an overall positive impact on relevant communities"

Core policy approach supported by Productivity Commission, the Australian Government and various regulatory reviews

Stakeholders must declare a Net Benefit Case for all future projects

Alternative Pathways- Choice

1. Committee DrivenHighly autonomous committees draft Standards to the requirements of ABSDO with defined technical and secretarial support and access to technical advice and editorial support from Standards Australia

2. Bureau An advanced version of the Committee Driven pathway where most of the responsibilities are held by one proposing organisation

3. CollaborativeSpecialist support products and services are provided under a collaborative agreement to meet market needs and solutions in agreed terms and time frames

4. Standards Australia DrivenHigh level technical and support services are offered for projects of high Net Benefit and priority. This pathway offers greater contribution from Standards Australia

5. ABSDOAccreditation as an Australian Standards developer via the Accreditation Board for Standards Development Organisations (ABSDO)

Alternative Pathways- Choice

Improving Standards Development Performance

Our standards development processes and performance are being dramatically re-engineered

SA investing heavily in a range of improvement initiatives including

- Living Laboratory

- Project Office

- New Technology

- Customer Information Service

- Learning and Development

Transformation ‘Take Off’Transformation ‘Take Off’

Initial phase transformation Initial phase transformation implemented - significant progress implemented - significant progress achieved inachieved in

• Engagement ManagementEngagement Management• Project Management Project Management • Organisation CapabilityOrganisation Capability• Processes & ProceduresProcesses & Procedures• Technology EnablementTechnology Enablement

The Journey Continues

Embed new initiatives & Embed new initiatives & effect cultural change in the effect cultural change in the

organisation & with organisation & with stakeholdersstakeholders

Implement further Implement further transformation transformation

initiativesinitiatives

Realise transformationRealise transformation benefitsbenefits

with many challenges still ahead

Jul-2009

Jun-2010

Oct-2008

Feb-2008 Transformation ApprovalTransformation Approval

Sustainable Sustainable Business Business

contributing contributing to Net Benefitto Net Benefit

Apr-2009

WaterMark

Scheme

SA owns WaterMark Scheme.

Have a MOU with NPRF - concludes in Dec 09.

June 2008 formally advised NPRF of decision to divest ourselves of ownership

Why divest?

• Productivity Commission Report 2006

• House of Representatives Standing Committee on Regulating Plumbing Product Quality 2007

• SA/Commonwealth MOU 2008

SA approach to Divestment

Ensure we manage transition seamlessly and in the national interest

Fulfill our legal and contractual obligations

Maintain good relationships within sector

Minimise financial costs on all parties

Issues for SA Who needs to be consulted besides NPRF?

Who should own WaterMark and how will this be determined?

What are the possible alternative arrangements?

What are the implications of the National Construction Code and review of IGA?

Addressing linkages between ownership of WaterMark scheme and work of WS -014 and WS – 031.

Financial considerations – set up costs and current value of future revenues.

Current Status Agreed with NPRF to work together on issues and solution

Were to have finalised a plan of action by December 2008 and then early 2009

Slow progress with NPRF to-date

SA will still maintain and improve existing system.

Want to know more?

www.standards.org.au adrian.oconnell@standards.org.au Free call 1800 035 822

THANK YOU