New Thinking
A roadmap for mid-market business owners
Adapting customer loyalty
Australia and the corporate governance experience
Australian and UK rail franchising experiences
Australian Regional Capacity Index
Australia's defence industry and the rise of Asia
Better business reporting – the journey continues
Big Data and why it matters
CHAFTA: Look to China for growth
Chinese Investment in Australia Demystified
Cloud – enabling business strategy
Corporate growth
Critical actions for a positive future
Cyber and digital security
Cyber security – Detect cyber threat
Cyber security – Protect your business
Cyber security – Respond to cyber threats
Cyber security – Secure organisational growth
Digital: A framework for the age of disruption
Digital: Reinventing the customer experience
Digital identity key for unlocking new business
Disrupting the board
Empowering Australians' impacted by their service
Financial reports de-cluttering in ASX200 companies
Financial System Inquiry – Innovation: Digital identity
Financial System Inquiry – Regulatory system
Financial System Inquiry – Superannuation and retirement incomes
Fixing Australia's naval shipbuilding industry
Future of investment management
Global shifts in defence and security
Harnessing the power of disruption
Here comes the M&A boom
Human services: rethinking regulation
Improving cities through urban renewal
Indirect Tax and International Tax – double the trouble?
Infrastructure trends
Leaving leadership development to chance is not worth the risk
Pricing: Defining the right strategy
Promising prospects in Australian corporate finance
Resource sector outlook
Risk transformation: Embracing conscious risk taking
Risk transformation: Engaging the first line of defence
Risk transformation: What makes a great CRO?
Road testing a public service reform agenda
Social media risks
Tax Reform: a call for fundamental change
Tax Reform: a new simplicity for fringe benefits
Tax Reform: a single tax collector
Tax Reform: stopping the fiscal drag
Tax Reform: property services tax
Tax reform – shaping the future
Tax transparency and morality
Technology and growth: working with the 'connected customer'
Technology's impact on investment industry
The constantly changing role of the CIO
The power of population
The private side of public investment
The Road to Paris
Transforming for consumer growth
Urban and regional growth: a smarter way
Utilities: technology is the future
Value of Audit
What is the future for government?
What a Japanese submarine option could mean for Australia
Road testing a public service reform agenda


Road testing a public service reform agenda

The public, private, and not-for-profit sectors are all experiencing an increasing sense of urgency around the public service reform agenda.

Following recent state and federal Budget announcements, we have seen genuine empathy and concern for the disadvantaged and lower socio-economic households and a desire to ensure fairness for those who are impacted.

However there is also a concern that Australians are suffering a 'reality gap' regarding the state of the nation’s finances. At Senate Estimates, the head of the Australian Government Treasury, Dr Martin Parkinson PSM, made the following comments:

"...there is a gap between community expectations and what the government can realistically do and there needs to be a frank and community wide discussion to reset expectations. There is a gap between what citizens want from government and what they are willing to pay for."1

How do we facilitate this dialogue?

In the United Kingdom, we are seeing bold approaches to public sector reform. In England and Wales, 41 Police and Crime Commissioners (known as PCCs) were elected by their community. Their role is to ensure community needs are met as effectively as possible and to improve local relationships through building confidence and restoring trust. The PCCs have responsibility for a combined police force area budget of some £8 million.2

Penny Armytage
"We know citizens are more empowered to participate in the reform debate, and are generally interested in doing so. But do they want some critical public service areas such as policing, child protection, probation and parole to be left in the hands of traditional government?"
Penny Armytage
National Sector Leader, Justice & Security
A much more controversial reform from the UK is the potential privatisation of child protection3 which follows a similar exercise in relation to probation and parole in 2013.4

Would we consider this in Australia?

Or is it a step too far? Do we need to be open to the discussion in an effort to achieve enhanced outcomes? Is it reasonable for the public to demand that we do something different to respond to confronting facts such as 14.2 percent of offenders on community based orders reoffend in two years?5

Reform is not straight forward and does take time. New models of service delivery may be more effective, however, citizens need to be engaged and understand the purpose of the change.

A concept Professor Paul 't Hart calls 'engagement pressure', that is, the evolution of community engagement from an age of ‘tell and sell’ to ‘involve and empower’, will inevitably develop a new and increased capability within the public sector. It may well lead governments here to seriously entertain the type of reforms being considered or implemented in the UK.

A vision for Victoria Police

The Chief Commissioner Ken Lay recently launched the Victoria Police Blue Paper: A Vision for Victoria Police in 2025.6  What this document sets out is the changing nature of crime and how policing needs to evolve to meet these demands, especially in a fiscally constrained environment.

The Blue Paper is a road map to reform and exactly the type of bipartisan debate needed in the community to ensure our public services remain relevant to citizens needs.

5 Productivity Commission, Government Services in Australia 2014

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KPMG works with all levels of government (federal, state, local, agencies) to help them respond to policy and service delivery challenges.