Introduction

The New South Wales Government has a goal of achieving a world class public service which delivers value for money, quality services to its customers and the community within the framework of the Govemment's policies.

Reaching the Government's goal requires a four stage process of change in every agency:

1. Creating a customer focus.
2. Delivering improved services for customers.
3. Implementing total quality in all aspects of the agency's operations.
4. Achieving best practice.

Moving from one stage to another does not mean leaving the earlier focus behind: it means embedding the concepts and practices in the operations of the agency and then focussing on changes that will lead to additional improvements. Each agency will move through these stages at different rates.

Whole-of-government initiatives are already in place for the first two stages.

The customer focus stage was initiated in 1992 with the requirement for each agency to publish a Guarantee of Service specifying the agency's services, its customers, the standards of service and the process for making complaints or suggestions. The customer focus requirements are indicated in Premier's Memoranda 92-31, 93-11, 94-2 and 94-44, and the Annual Reports (Departments) Regulation 1986.

The second stage in achieving world class performance is delivering improved services for customers. The Qualify Customer Service initiative (Premier's Memorandum 94-45) requires each agency to make measurable improvements in the quality of service delivery to customers and clients. These improvements need to include front line complaint handing procedures and specifying maximum response times for granting licences and approvals (Premier's Memorandum 95-29).

Development and implementation of stage 3 - implementing Total Quality in all aspects of the agency's management and operations - is now required. This is a key responsibility of agency CEOs.

Total Quality

Quality Customer Service focuses on improvements in one aspect of an agency's performance, that is, measurable improvements for customers. Total Quality broadens the application of quality practices to all aspects of an agency's operations. It requires agencies to implement quality practices and develop a culture of continuous improvement in all facets of their organisation including leadership, policy and planning, people rnanagement, financial and asset management, information management, internal processes, service delivery and relationships with suppliers.

While agencies will be expected to continue to achieve measurable improvements in outcomes for customers they will also be required to demonstrate that they are putting in place strategies aimed at measurably improving the qualify of their performance across all dimensions of their operations. Examples of the types of improvements which might be achieved are: faster, lower cost processing times, reduced cost of rework, lower absenteeism rates for staff and improvements against external benchmarks.

For agencies which do not already have tools for assessing their current level of performance and identifying opportunities for improvement, the New South Wales Government Agency Quality Performance Assessment Matrix, which was recently sent to all CEOs by Premier's Department, can provide a useful starting point. It provides key indicators against which agencies can assess their current level of performance along a number of dimensions. It can also assist them to pinpoint areas where they are performing well and those where they need to focus their attention. As well, the key indicators provide guidance on strategies to improve performance on particular dimensions.

In improving their performance, agencies are encouraged to use a range of recognised quality improvement tools and techniques as appropriate to their needs. These include TQM, quality assurance and business process re-engineering. Sometimes incremental improvement processes such as TQM will be most appropriate, but in other cases a fundamental reappraisal of the agency's purpose and functions and major changes to the work itself will be needed. The implementation of Total Quality maximises opportunities to reduce or eliminate inefficient practices, achieve greater value for money and ensure effective delivery of services to both internal and external customers.

Many larger agencies already employ people with expertise in these issues. For agencies that do not have such resources, expertise is also available in the non-government sector. Although there is no one way of implementing quality, the Australian Quality Council increasingly is adapting its products and services to suit the requirements of the public sector. It has tools and training programs which can assist agencies that do not wish to develop specific performance improvement tools of their own. However agencies should retain the flexibility to use other tools and techniques if they are appropriate to their needs.

Agencies may also wish to compare their performance against external, independent industry standards. The Australian Quality Awards Foundation, for example, plans to expand the range of their Awards to include recognition of entry, intermediate and higher level performance. This will enable organisations at different levels to gain external recognition for their achievements in improving the quality of their performance. Organisations such as Standards Australia may also be of assistance to agencies seeking external certification of performance.

Implementing Total Quality is consistent with the recently released Framework for enterprise bargaining at the organisational level. CEOs will be aware that an objective of the Framework includes quality customer and client service, and that 'Learning Organisations and Total Quality Management' is one of the key priority areas identified in the Framework that may be implemented through enterprise bargaining.

The Premier's Department can assist agencies to implement Total Quality. In addition to the Quality Performance Assessment Matrix, customer service performance measurement guidelines for use by agencies will be published in February 1996 and related management development workshops will be made available. The Department is also planning to develop other forms of assistance which agencies identify as useful in implementing Total Quality. Agencies are invited to contact Ms Sheri Dudley, Director, Service, Performance and Operations Division on (02) 228-4854 with suggestions.

Achieving Best Practice

Once agencies have made a commitment to Total Quality and are applying continuous improvement processes throughout their organisations, the final stage of achieving a world class public sector is to move from quality practice to 'best practice'. From mid-1996, all agencies will be required to put in place benchmarking processes as an element of the Achieving Best Practice stage. The Premler's Department will develop detailed guidelines, timelines and outcome requirements for this stage.

Reporting requirements for Total Quality

Agencies will be required to demonstrate that they are putting in place strategies aimed at measurably improving the quality of their performance across all dimensions of their operations. A progress report will be required in mid-1996, at the same time that agencies are scheduled to report on their measurable improvements in quality of service for customers (see Premier's Memorandum 94-45). The Premier's Department will consult with a Working Party of Chief Executives on ways to assist agencies implement Total Quality as well as developing specific requirements for the progress report.

(K.P. Baxter)
Director-General

Issued by: Service Performance and Operations Division
Contact: Sheri Dudley/Don Munro
Telephone: (02) 228-4854/228-5047
Date: 19 December 1995