A Chief Executive Performance Agreement is an essential tool to ensure that there is understanding and agreement between Ministers and Chief Executive Officers (CEOs) on their major tasks and accountabilities. The CEO Performance Agreement sets the agenda for the following year and from this flow the accountabilities of the executive officers.

The Performance Agreement and annual review form the basis for any remuneration increase as determined by the Minister in the implementation of any Statutory and Other Offices Remuneration Tribunal (SOORT) determination.

From time to time, it may be necessary to put in place priority areas of focus for performance in line with Government policy. For the year ahead the priority areas of accountability are:

• development and implementation of a Year 2000 strategy in accordance with established guidelines
• improving occupational health and safety management
• focus on the responsibility for equitable management of staff of the agency
• a whole of government approach to the delivery of outcomes
• management of corporate credit card usage and compliance in agencies.

These priority strategies are to be built into all Chief Executive Performance Agreements and performance measured against how well the targets have been met.

Chief Executive Officers are responsible for developing and implementing a Year 2000 strategy to ensure that information systems comply with the requirements of the Office of Information Technology (Memorandum 98-14 refers).

In line with the Government's commitment to improve occupational health and safety in the public sector, improved management of occupational health and safety is considered a key accountability for Chief Executives. This should be reflected in the Performance Agreements, and related performance measures identified. Where agencies have negotiated specific occupational health and safety improvement targets under the Corporate Services Reform Initiative, targets are to be included in the relevant section of the Performance Agreement.

While the Government's approach to recruitment and selection processes is based on merit and employment equity principles, the equitable management of staff is also considered an essential accountability.

A whole of government perspective to management involves cooperation and collaboration between agencies to achieve outcomes which they could not achieve alone in meeting Government objectives. Chief Executive Officers have a responsibility to cooperate with other agencies to develop whole of government solutions.

Effective 1 January 1999, I have directed that Chief Executive Officers certify the usage of credit cards in agencies has been in accordance with strict guidelines. This requirement is to be included in all Chief Executive Officers' Performance Agreements.

CEO Performance Agreements are living documents. From time to time Cabinet will agree to further initiatives which will impact on them. Ministers and CEOs need to be alert to such changes in Government policy communicated through Memoranda and Circulars and update the Performance Agreements accordingly.

The attached Chief Executive Officers' Performance Agreements Guidelines will assist Chief Executives and Ministers to draw up relevant and fair Performance Agreements. The Guidelines should be used as the primary guide but are not prescriptive. This Memorandum and Guidelines replace Memorandum 95-45 and Guidelines issued in December 1995.

For further assistance please contact Judith Withers on 9228 5514.

Bob Carr

Premier