Principle 4: Operations

Corporate Business Plan 2014-2018

We produce a Corporate Business Plan aligned to our strategic direction and Government goals and objectives. It forms the basis for all Directorate and Branch Business Plans and will ensure that planning, delivery, maintenance and operational activities are aligned with corporate direction and priorities. This approach is built on meeting our strategic and future needs and achieving a greater integration of strategic, workforce, operational and financial planning.

The Business Planning process defines how we go about our business and identifies our annual corporate initiatives and actions within a context of a four year timeframe. The Business Planning model (right) shows the relationship between internal business management processes and how they interact with our drivers to achieve our Program Outcomes and Government Goals.

Progress against achievements in the Corporate Business Plan are monitored, reviewed and evaluated which is an important element in the entire process. We have in place a range of initiatives to review our progress in achieving our stated aims occurring on a monthly, quarterly, bi-annually and annually. Reporting varies from scorecard and dashboard style information and analysis through to quarterly staff communiques.

Financial Targets: Actuals Compared to Budget

The following table provides a comparison of the financial targets and outcomes against criteria included in the Resource Agreement between the Commissioner of Main Roads, Minister for Transport and the Treasurer.

(1) As specified in the latest budgets statements relating to estimates for 2013-14.

(2) Explanations of variations:

1. The variation in relation to Total Cost of Services is mainly due to unspent State funds on the following projects: Great Eastern Highway (Kooyong Rd to Tonkin Hwy), South Coast Highway (Ravensthorpe), Lloyd St – Rail Underpass, Mitchell Freeway third lane (Hepburn to Hodges), and Great Eastern Highway & Roe Highway Interchange.
2. The variation in Net Cost of Services is due to the change in payment method of Commonwealth grants under the Nation Building program from a monthly claim approach to a milestone claim arrangement, deferred handover of infrastructure assets from private bodies – Ashburton North Strategic Industrial Area Access Road (Stage 3), and recognition of notional revenue relating to assets not previously recognised in the Statement of Financial Position.
3. The variation in relation to Total Equity relates mainly to revaluation increases in the value of Land Under Roads required under Accounting Standards to prevailing market based fair values.
4. The Net decrease in cash held being higher than budgeted is a result of additional funds received under Western Australian Natural Disaster Relief and Recovery Arrangements for opening and restoration of assets damaged by declared Natural Disasters.

Further explanations are also contained at Note 42 of the Financial Statements.

Integrated Management System

We use a systematic approach to improving business performance based on quality management principles. Our Integrated Management System brings together our third-party certified processes into a single structure. During the year we undertook a full audit of our Management System confirming that we continue to comply with the requirements of International and Australian Standards and thereby maintaining our existing certification through to 2016. Continuous improvement is the cornerstone of all our management processes and procedures.

We are keeping a close watch on the development of new International Standards for Road Safety and Asset Management and during 2014 -15 we will be exploring the feasibility of embedding these into our business practices as part of our Integrated Management System.