Standards Australia's New Business Model PSF Sydney 2009 May 2009 Adrian O’ Connell General 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 Infrastructure Bodies

 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 Standards Australia

Standards Australia 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) STANDARDS AUSTRALIA STANDARDS DEVELOPMENT (SA-SD) STANDARDS AUSTRALIA STANDARDS DEVELOPMENT (SA-SD) AUSTRALIAN INTERNATIONAL DESIGN AWARDS (AIDA) AUSTRALIAN INTERNATIONAL DESIGN AWARDS (AIDA) 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 Sector Operating Plans Sector Operating Plans National Standards Advisory Committee (NSAC) National Standards Advisory Committee (NSAC) Standing and Project Based Committees Cross Sector Forums Regional and International Coordination Groups Audit, Review and Appeal Standards Australia Board Standards Australia Board Council and Members Coordination Groups NEW STANDARDS AUSTRALIA NEW STANDARDS AUSTRALIA Standards Australia STANDARDS INFORMATION AND COORDINATION DESIGN ASSESSMENT AND PROMOTION STANDARDSDEVELOPMENT Watermark

Introducing 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 Food  Mining  Manufacturing and Processing  Building and Construction  Electrotechnology and Energy  Water and Waste Services  Transport and Logistics  Health and Community Services  Consumer Products and Services; Consumer Safety  CiTEC  Education and Training Services  Public 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 Driven Highly 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. Collaborative Specialist 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 Driven High level technical and support services are offered for projects of high Net Benefit and priority. This pathway offers greater contribution from Standards Australia 5. ABSDO Accreditation 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’ Initial phase transformation implemented - significant progress achieved in Engagement Management Engagement Management Project Management Project Management Organisation Capability Organisation Capability Processes & Procedures Processes & Procedures Technology Enablement Technology Enablement The Journey Continues Embed new initiatives & effect cultural change in the organisation & with stakeholders Implement further transformation initiatives Realise transformation benefits with many challenges still ahead Jul-2009 Jun-2010 Oct-2008 Feb-2008 Transformation Approval Sustainable Business contributing to 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.

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