1. Session 10: Delegations of Authority Presented by: Andrew CookePricewaterhouseCoopers

2. What would you like to grow? whatwouldyouliketogrow.com.au Delegations of Authority ANZUIAG Conference 2010

3. What would you like to grow? PwC Setting the scene GFC Growth through better business decisions Risk culture Empowerment of staff Cut through the red tape Make people more accountable 3

4. What would you like to grow? PwC Agenda Delegation of Authority What benefits can it bring A delegation decision model What are some common problems Key insights The USQ experience Questions 4

5. What would you like to grow? PwC Delegation of Authority Authority to make business decision Support accountability and governance Responsibility / accountability / authority Forms the basis of your decision escalation process Single source of truth or guiding principles 5 Successful organisations exhibit characteristics of structural clarity through formal and informal accountabilities Informational accountabilities (Underpinned by leadership style, culture, trust, operating principle/values etc) Formal accountabilities Clearly defined and documented Assigned to expertise with ability to act Congruent across multiple dimensions Open and robust communication Constant learning and educating from failure

6. What would you like to grow? PwC What benefits can it bring Empowers employees Provides or builds on your internal structure Protects your assets from undue risks or liabilities Provides alignment of resources to decision making Embeds risk appetite and tolerance throughout your organisation Provides greater clarity on what is truly important to your organisation 6

7. What would you like to grow? PwC A delegation decision model 7 Decision models Governance structures Delegations of authority Key decisions Organisation structure Policies and standards Skills and competencies Processes and procedure Governance processes Job description DescriptorTermDefinition AAccountablePerson or role who is ultimately accountable for the decision, who owns the outcome from the decision. An Accountable must signoff (Approve) on work that a Responsible provides RResponsiblePerson or role responsible for ensuring that an item is completed / a decision is made. There is typically one role with a participation type of Responsible IInformedPerson or role that needs to kept informed of the status of the decision making process – usually one way communication on completion CConsultedPerson or role whose subject matter expertise, knowledge, information or other input is required in order to make the decision

8. What would you like to grow? PwC What are some common problems Complexity of DoA and business processes Misalignment of DoA and business processes DoA not aligned with organisational structure / decision making Ineffective decision making structures Lack of staff awareness and inappropriate training Failure to enforce (e.g. code of conduct breach) Poorly managed when staff in temporary roles 8

9. What would you like to grow? PwC Key insights Guiding Principle vs Single Source of Truth Guiding Principle – high trust environment where levels of delegation are linked to accountabilities, tend to set parameters and are less prescriptive than a ‘single source of truth’3 Single Source of Truth – the DoA is a single (central) prescriptive document for decision making and operational action Areas typically cover -Budgeted vs non-budgeted -Capital and operating expenditure -HR -Pricing -Contracts and supplier arrangements -Marketing 9

10. What would you like to grow? PwC Key insights 10

11. What would you like to grow? PwC The USQ experience 11 Decision models Governance structures Delegations of authority Key decisions Organisation structure Policies and standards Skills and competencies Processes and procedure Governance processes Job description Strategy Selection RACI Model Council and Mgt Cmttee’s ORMP - Budget System workflow Align for reportin g Contract Perf System Access Code of Conduct ITFacilities Risk / Fraud

12. What would you like to grow? PwC The USQ experience 12

13. What would you like to grow? PwC The USQ experience 13

14. What would you like to grow? PwC The USQ experience 14

15. What would you like to grow? Questions © 2010 PricewaterhouseCoopers. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity