Changes to the Local Government Act, and the impending introduction of National Competition Policy, has led Fremantle City Council to develop a single process to meet all these requirements.
“With Principle Activity Plans, competitive neutrality analysis under NCP, benchmarking and changes to the budget process having some overlap with at least one other area, Council believed a single process would avoid duplication of effort,” said Chris Oughton, Executive Officer Corporate Development.
Working well ahead of statutory requirements, in November 1996, Fremantle’s ‘Value for Money’ document was produced.
“This clearly outlined change drivers in the industry and their implications for our activities,” Chris said. “It also detailed Council’s competition policy and how benchmarking would be applied.”
A step by step business planning process, for business units and major trading undertakings, was also included. Through establishing a purchaser/provider split, 34 specific Business Units were identified. They have now developed business plans based on three key performance indicators – volume, efficiency and quality.
Some 65 copies of Fremantle’s ‘Value for Money’, in hard copy and on disk, have now been sold to other Councils. Fremantle is also one of the few Councils in the State with a comprehensive Principle Activities Plan in place. More recently, Council has formed benchmarking teams that are establishing external comparisons to benchmark activities against.
“Prior to the budget next year, we aim to have measured our performance against identified benchmarking partners,” Chris said. “This will pinpoint where we are, or are not, competitive. Areas that are competitive will not be market tested, but those that do not come up to scratch will have to prepare for this.”
He added that, in some areas, Council was experiencing difficulties finding good benchmark partners. In these cases, other measures, such as economies of scale, will be used.
For further information contact Chris Oughton, telephone (08) 9432 9999.
