As is the normal procedure with any new policy or program, action is underway to evaluate the effectiveness of the Senior Executive Service as a management improvement initiative. The Senior Executive Service is a major initiative which is intended to improve the performance and productivity of the public sector by changing the structure of rewards and sanctions for senior executives whose work As so critical to agency performance.

The program evaluation will focus on the overall impact of this major initiative on the public sector and how it might be further enhanced. The evaluation is not directed to the individual performance of executives, as this is a matter for ministers and Chief Executives, in the context of performance management systems and performance agreements.

The evaluation is aimed at providing objective measures in such areas as:

• improvements in agency management and performance as a result of the Senior Executive Service;
• the effectiveness of performance agreements in measuring and improving those aspects of the work which are critical to the achievement of the agency's performance;
• improvements in the Government's capacity to recruit and retain skilled executives in the competitive labour market;
• improvements in Chief Executives' capacity to manage their senior resources more flexibly, and to deploy them to the most important priorities;
• the degree of attitudinal and cultural change among senior executives towards more professional and accountable management;
• the adequacy of the policy and legislative basis of the Senior Executive Service;
• the appropriateness and effectiveness of the Senior Executive Service mechanisms, including the contracts, the Code of Conduct, and the job evaluation processes, in supporting the achievement of the SES objectives; and
• the use of the Senior Executive Service as an instrument of change in organisations generally.

Objective measures in these and any other relevant areas will be refined through a program of interviews and questionnaires which will draw on the views of a wide range of 'stakeholders' in the CES and SES, including, for example, Ministers, Chief Executives, Chairmen of Boards, Senior Executives, staff below SES level, and people in the private sector.

Once objective measures are established through this process, the Office of Public Management will continue to monitor progress through a follow up program, to be conducted between July and September each year.

Given the nature and scope of the evaluation, it is necessary that it have independent in t. Following an open competitive tendering process, Coopers and Lybrand Consultants have been selected from a competitive field of 21 tenders to assist the Premier's Department in the evaluation.

Although the Senior Executive Service has been in place for only one year, it is essential that the collection of evaluative material commence as early as possible, both to establish base-line measures and to give the Government early indication of its effectiveness.

Initial interviews with Ministers, and a representative sample of Chairmen and Chief Executives, will take place in October 1990. Coopers and Lybrand will contact Ministers' offices to make these arrangements. The interviews will be conducted by senior consultants from Coopers and Lybrand (Ken Munro, Anne Pender, Paul Forward or Vivienne Swil) and information and ideas provided will be treated confidentially.

In view of the importance of the SES initiative and the need to evaluate its effectiveness, I would appreciate your support in this program. I enclose a copy of the project timetable for Stages 1 and 2 for your information.

DG Humphrey

Date of issue: 14.SEP 19.30