Strategic Development and Management

Planning

Stepping up from the foundations laid in ECU's initial Strategic Plan, the ECU Strategic Plan 2003-2007: A Stronger ECU was endorsed by Council in October 2002 and implemented in 2003. The new Plan was the result of a deliberate decision to streamline both the Plan itself and the planning processes flowing from it. The outcome is an integrated, whole-of-University Strategic Plan aligned to a clearly-stated mission for ECU. The new Plan focuses on five Strategic Priorities which provide direction for all other functional and operational planning:

1. Enhancing teaching, learning and research
2. Engaging with the professions and professional life
3. Building partnerships, pathways and precincts
4. Improving outcomes for students and staff
5. Strengthening enterprise and the resource base

A consolidated Planning Framework was developed in 2003, setting out a structured system of functional and operational plans which are reviewed and updated according to a cyclical calendar. The planning framework has been developed in accordance with the principles of Quality @ECU, particularly the Plan-Do-Review-Improve cycle. For more information on Quality@ECU, click here.

Campus consolidation has been a major part of ECU's strategic activities in recent years. Guided by research and long-term strategic planning, a decision was made to consolidate ECU's metropolitan campuses, a process which was expected to take at least eight years and cost in the order of $175 million. Rationalising the campuses will close operations at Claremont and Churchlands Campuses, with ECU progressively consolidating its operations at its Joondalup, Mt Lawley and South West (Bunbury) Campuses.

The year 2003 saw a major milestone in ECU's campus consolidation program with the opening of Building 2 (Faculty of Business and Public Management) and Building 1 (Chancellery) at Joondalup. Since 2001, about 2,500 students and 500 staff members have transferred and an investment of nearly $90 million in capital has been made at the Joondalup and Mt Lawley Campuses. The campus consolidation program offers many benefits to ECU and its stakeholders, including:

• further enhancement of the University's public image, particularly through the Joondalup Campus development
  
  
• strong positioning of ECU in the high-growth northern metropolitan corridor of Perth , which is home to many potential first generation university students
  
  
• efficiencies gained through the running of fewer campuses
  
  
• greater critical mass and enhanced student life on campus.

As each campus is part of a larger educational precinct, the campus consolidation program also offers opportunities for an increased focus in marketing, planning and professional and community engagement on three educational precincts, each with a different focus and character.

By 2005, Joondalup is expected to be accommodating 6,000 students. The new administrative headquarters now provide a focal point for ECU. These buildings include general teaching space, central administration and Chancellery, a new bookshop and conference facility and other University services and amenities.

By 2007 the final consolidation of activities to Joondalup in the northern suburbs and Mt Lawley should be complete. ECU is the largest employer in Perth 's northern corridor, and a major contributor to the community through such projects as the business incubator for fledgling local small business, and a community psychology centre.

At Mt Lawley, the $8 million New Theatre development for the Western Australian Academy of Performing Arts (WAAPA) is expected to attract worldwide recognition. Already in use, this building will be officially opened in 2004.

New student housing on the South West Campus at Bunbury, designed to provide double the current amount of accommodation, was officially opened in 2003. The aim of this project is to enrich the sense of community and overall university experience for students who have moved away from home to complete their studies.

The WA Planning Commission has begun the process to change the Churchlands Campus land use zoning from University Purposes to Urban, and the City of Stirling has also agreed to rezone the land for mixed residential uses. These amendments are expected to be in place during 2004, and it is hoped site works will commence in September-October 2004. Staged demolition of some campus buildings will begin in early 2005, with the University's final exit from Churchlands expected in 2007. For more information on Campus Consolidation, click here.

Many key recommendations of the Integrated Transport Plan prepared by the Facilities and Services Centre in consultation with the State Department of Planning and Infrastructure, local governments, specialist consultants and ECU stakeholders, were implemented during 2003. These included the appointment of a Travelsmart Officer, creation of a shuttle bus service between the Joondalup Campus and the train/bus station, enhanced Transperth bus services and the provision of improved facilities for cyclists. In addition to improving campus access for staff and students, encouraging travel options other than cars has made an important contribution to the sustainability objectives of ECU's Environmental Charter.

Detailed surveys during 2003 confirmed further improvement in the utilisation of teaching space in addition to the 15-20 per cent improvement achieved in recent years and which represents a cost saving of around $5 million.

During 2003 the University was closely engaged with the debate on the Commonwealth Government's higher education reform package Our Universities: Backing Australia 's Future. ECU made a submission to and appeared before the Senate Inquiry into the reform package, setting out the advantages of the policy to the sector, and some concerns, including: workplace relations reforms linked to future funding; National Governance Protocols also linked to funding; and an overly labour-market driven course mix.

ECU also:

• hosted a federal Department of Education, Science and Training (DEST) Profiles visit by senior DEST officers, providing an opportunity to showcase its new Joondalup Campus and supply contextual information on ECU's recent and proposed future developments;
  
  
• hosted a visit by senior staff of the WA Department of Education Services; and
  
  
• made a submission to DEST on approaches to an allocation methodology for new fully-funded Commonwealth places.

Quality@ECU

ECU's approach to quality has been the subject of much work over the past several years, culminating in the updated Quality@ECU brochure, distributed throughout the University community in April 2003. The brochure depicts the key elements of ECU's approach to quality. In summary, these key elements are:

• commitment to seven quality principles which have been customised from the Australian Business Excellence Framework and which cover core activities and enablers;
  
  
• adoption of a plan-do-review-improve cycle; and
  
  
• an ultimate focus on improving outcomes.

Fundamental to ECU's approach to quality is that all staff are responsible for quality. All staff members and all work units are expected to continuously seek to improve their processes, and the quality of their services and outcomes.

At the strategic level, during 2003 a new KPI Framework was implemented. KPIs are an important component of ECU's approach to quality. These will help both Council and the Vice-Chancellery Team monitor progress against the strategic priorities in the 2003-2007 Strategic Plan.

Benchmarking is also recognised as an important aspect of ECU's approach to quality. ECU in 2002 engaged in international benchmarking in the areas of governance, risk management and audit, student services and international, and in 2003 extended this activity to leadership development, change management and strategic alliances. ECU recognises that it would be beneficial for more benchmarking to be undertaken at the faculty and centre level. To this end, consultation took place in 2003 on a Benchmarking Framework which indicates ECU's encouragement of benchmarking and helps clarify arrangements that individual faculties and centres might put in place to engage in meaningful benchmarking in priority areas. The framework is expected to be finalised and adopted in early 2004.

During 2003 a second Guided Self-Assessment against the Australian Business Excellence Framework was commissioned to assess progress (the previous GSA was conducted in 1999). Overall, the results were highly favourable, showing an improvement in the organisational assessment score found on all seven dimensions of the ABEF, with the report making particular mention of:

• shared executive and senior management leadership processes to articulate and derive organisational direction
  
  
• direction and sense of purpose are more clearly understood
  
  
• integrated and linked planning processes with increased involvement and ownership
  
  
• quality framework driving review and improvement processes
  
  
• KPI development and a reporting framework increasing accountabilities
  
  
•   increased focus and measurement of customer feedback.

During 2003 ECU updated its Area of Scholarship Review Policy and developed supporting guidelines and protocols. The guidelines for faculty and centre annual reviews were also further streamlined.

A major activity for ECU during 2003 has been preparation for an audit by the Australian Universities Quality Agency (AUQA) which is scheduled for March 2004. Preparations included development of a comprehensive Performance Portfolio and carrying out a Mock AUQA Audit. The formal Performance Portfolio is to be submitted by 11 December 2003 . Preparation for the AUQA audit has helped focus attention on ECU's quality framework and has highlighted both areas of achievement and areas offering opportunities for improvement. For more information on Quality@ECU visit: www.ecu.edu.au/Quality @ECU/

Finance and Financial Management

ECU, along with other Australian universities, continues to operate in an environment that is increasingly resource-constrained and competitive and in which the global environment is more uncertain.

To support the University in meeting its strategic priorities in this environment, the following key financial management objectives were planned for 2003

•   improve and further streamline the budgeting/planning processes
  
  
• fully implement the University's Asset Tracking System
  
  
• implement and gain acceptance of our Activity Based Costing system
  
  
• centralise and standardise the University's debtor system
  
  
• identify system and process improvements and efficiencies prior to the upgrade of the core financial system
  
  
• continue the improvement of the timeliness and relevance of financial reporting
  
  
• partner and support the business units of the University with the provision of commercial advice
  
  
• co-ordinate, efficient and effective working cashflow management across the University to deliver funding for operational and capital needs
  
  
• develop and implement key financial policies and procedures
  
  
•   continue to lower the University's cost of risk through innovative and appropriate risk financing strategies
  
  
• continue the alignment of the whole of University strategic procurement processes to achieve better value for money in our purchasing .

We are pleased to report that against the planned objectives noted above the following were achieved in 2003:

• The University's budget process was completed and approved by Council in the year prior to operation. The level of accountability in budget planning and development was increased for all business units in 2004.
  
  
• The fixed asset tracking system has been implemented across the University. This system will enable improved accountability in the management of University assets.
  
  
• Activity Based Costing reports were produced for all business units. The process enabled managers to identify strong performing units and allows for better accountability of the University's outputs.
  
  
• The first stage of centralising University debtors has been undertaken with further work planned for 2004 which will include implementing Debtor Policies and Procedures.
  
  
• A Solutions Value Assessment (SVA) was undertaken by an independent consultant to identify opportunities to improve business systems and processes. The findings from the SVA will be implemented as part of the upgrade of the University's financial system in 2004.
  
  
• Financial reports were delivered within agreed timeframes to all business units.
  
  
• Several key financial policies and procedures were revised/developed in 2003, including Revenue Recognition, Debtor Management and Asset Management Planning and Control. Implementation of these policies will occur in early 2004.
  
  
• Worked closely with Faculties to review and set the 2004 fees for fee paying courses, ahead of required timelines.
  
  
•   Assisted with financial/commercial advice to achieve outcomes on several major commercialisation projects during 2003.
  
  
• Strong cashflow management has delivered both better than benchmarked returns and funding for all operational and capital programs with minimal drawdown of our approved borrowing facility.
  
  
•   Strong management of our Risk Financing arrangements have again delivered to the University the low premiums, no diminution to our level of cover or increases to our deductibles for 2003/2004.
  
  
• Strategic procurement processes have continued to grow our preferred supplier base and deliver savings to the University.

Financial Outcomes

The University's operating surplus of $9.0 million in 2003 compares very favourably in a tight fiscal year with the operating surplus of $15.2 million for the previous year. The 2002 operating result was higher largely due to the recognition as revenue of $4.0 million for Capital Development Pool funding.

This result has produced a solid Operating Margin in 2003 of 4.3 per cent. This compares favourably to a sector-wide Operating Margin in 2002 of 4.3 per cent.

The University's liquidity position continues to remain solid. The current ratio for 2003 is 0.88 compared to the current ratio in 2002 of 0.76. As noted above strong cashflow management has delivered both better than benchmarked returns and funding for all operational and significant capital programs with minimal drawdown of our approved borrowing facility.

(Please refer to the Financial Statements and notes for detailed explanations of the 2003 financial outcomes for the University).

Risk Management and Audit

Risk Management and Audit Assurance (RMAA) is active across all areas of the University's operations. Major areas of involvement for RMAA in 2003 included assisting in the development of quality assurance processes for offshore offerings, determining ECU's response to the SARS virus, realigning the Anti-Fraud and Corruption Policy to ensure compliance with the Public Interest Disclosure Act and improving RMAA certification processes for faculty or centre projects undertaken with external bodies.

RMAA is currently implementing a strategy for the rollout of systematic risk management practices across ECU. The first mega-faculty audit has been conducted and a faculty audit protocol developed. Late in 2003, RMAA began work on a compliance framework for ECU.

Resource Base

In its goal to strengthen the level of enterprise and broaden its resource base, ECU is relying on a number of initiatives to deliver improvement. One is a greater drive to attract development funds, especially through the University's not-for-profit ECU Foundation. Donations to this body are wholly directed towards ECU's educational outreach programs, research efforts and scholarships.

In 2003 corporate funds were raised for the National Nursing Research Institute, set up by ECU, and private funds pooled into the Foundation were raised through the Path of Honour project, centred on commemorative tiles in the forecourt of the new Chancellery.

From among the ranks of its alumni, ECU secured an increased level of financial support and commitment during 2003, including bequests and scholarship donations focused on regional and indigenous students.

Computing and Information Technology

Maintaining state-of-the-art computing and information technology is a vital component of ECU's operations. A successful initiative in 2003 of the Knowledge and Information Technology Services Centre (KITS) was the completion of tasks by several improvement teams focused on developing measured solutions to pressing service issues. Teams worked on communication, staff recognition and customer service. Outcomes achieved were:

• provision of a single printing system for students in the Megalabs and Libraries
  
  
• creating library staff ability to reset passwords
  
  
• establishing a policy to incorporate staff HECS fee payment as a part of professional development
  
  
• creating awards to encourage staff to excel in service ethics, professional standards and enterprise
  
  
• increased centre newsletter frequency.

Major technology improvements included the large scale roll-out of the new Apple Standard Operating Environment and an upgrade of multimedia teaching equipment with over 60 new LCD projectors installed. New security measures assist in protecting this investment.

Annual network uptime averaged over 99 per cent in 2002 and its high performance ensured the Internet was responsibly managed in 2003. The flow-on effect is protecting the University from potential copyright litigation as downloads of music and movie files were prevented.

Two major library system improvements went live in 2003:

• an e-reserve system to enable hosting of electronic copies of library materials in a controlled environment – improving access for online students and enabling responsible copyright management
  
  
• an authentication directory system jointly developed with the other four University libraries in Perth to enable improved access to students using non-home campus library systems.

The new system is called the Western Australian Library Authentication Project (WALAP) and will deliver improved benefits to students and staff by inter-library resource sharing. The Library also commenced a project to enable the University to participate in the Australian Digital Thesis Project where theses will be electronically published for students.

Overall customer satisfaction continued to grow with almost 80 per cent of students being satisfied or very satisfied with both Library and IT services (see graph below) . This improvement has been registered consistently in all surveys since 2002. However, challenges exist in improving the electronic collection, Help Desk and Megalab services. These will be addressed more completely in 2004.

A major 2004 initiative is the deployment of over 2,000 new Intel-based computers for students and staff – the largest computer roll-out of its kind in WA. Its most dramatic improvements will be in Megalab services to students.