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AWEX EMI 1157 -6
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Micron 19 1413 +10
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2018 Review of Performance

Australian Wool Innovation’s (AWI) 2018 Review of Performance implementation progress report, which demonstrates the implementation progress of the 82 recommendations included in the independent Review of Performance report 

Welcome to Australian Wool Innovation’s (AWI) 2018 Review of Performance implementation progress report, which demonstrates the implementation progress of the 82 recommendations included in the independent Review of Performance report (the Report).

AWI has a statutory obligation through the Statutory Funding Agreement (SFA) to provide its implementation plan to the Department of Agriculture, Water and Resources by Friday 19 October 2018. The information on this portal has been designed to present each of the 82 recommendations identified in the Report and provide timely updates on the implementation progress of each recommendation item.

The recommendations have been grouped into key themes: Constitution, Governance, Monitoring Evaluation & Reporting, People & Culture, Consultation, ROP recommendations & implementation Collaboration. A status percentage sits alongside each item to represent the progress made.

24 out of 24 recommendations completely implemented

THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Recommended
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
1 Nov 2019 22 Nov 2019 Complete

 

FINDINGS

Our review of the AWI Constitution showed a number of areas where it could be improved – to better reflect ASX’s Corporate Governance Principles and Recommendations, the Corporations Act (Cth) 2001 or to incorporate provisions from other RDC constitutions that better express good corporate governance and are more appropriate for a company of its type.

RECOMMENDATIONS

Review and update the AWI Constitution and SFA obligations to reflect the recommendations set out in Annexure 2 and 9. The Constitution should be updated regularly to remain relevant with the current purpose of AWI and reflect better practice governance standards. This should be renewed following extensive stakeholder input and tabled at the 2019 Annual General Meeting, with proposed amendments to be circulated well in advance.

IMPLEMENTATION PLAN

AWI acknowledges the need to formalize and document the regular review, updating of its policies and procedures as appropriate to ensure its governance standards reflect currently applicable ASX Principles.

To date, AWI has managed requirement by regularly reviewing its framework of corporate governance documents. However, AWI has not recorded the dates of each of these reviews. Going forward, when these reviews are conducted, the date of the most recent review will be recorded to provide greater transparency.

There are a number of recommendations that require minor changes to AWI’s Constitution, subsequently the AWI Board have agreed these will be put to shareholders to adopt.

There are five recommendations that the Board believe will result in significant change to the “DNA” of the company and as such, AWI intend to put options to shareholders for consideration.

As per the rules of the Constitution, all of the recommendations that require a change or repeal to AWI’s Constitution will be put to shareholders to adopt or consider at an EGM in early 2019.

This recommendation also relates to 1.1.2, 1.1.5, 1.9.1, 1.9.4, 1.9.5, 1.9.8, 1.9.10, 1.10.1, 1.10.3, 1.10.4, 1.10.5, 1.11.1-1.11.19 and 1.12.3.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

AWI has revised and published major policies in 2019. There are revisions to the board charter, board nomination committee charter and code of conduct and business ethics and can be found on the website wool.com.

There are diverse amendments to the AWI constitution being put to shareholders at the 2019 AGM. There is full commentary on the changes in the explanatory statement in the Notice of Meeting. The majority of the changes are considered as minor and non-consequential matters which address the commentary in the ROP at Annexure 2 and 9 to the extent that these could be reasonably be considered as applicable to AWI. The proposed change to the AWI constitution have been agreed by shareholders at the 2019 annual general meeting.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Recommended
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
XXX 31 Jan 2019 Complete

 

FINDINGS

Clause 15.4 of the SFA requires AWI to consult with the Commonwealth on amendments to the AWI Constitution. While this is a consultation requirement, it may act as a veto power.

RECOMMENDATIONS

Consider further amendments to clause 15.4 of the SFA in order to allow for greater flexibility in proposing amendments to AWI’s Constitution. This should be implemented by 31st January 2019.

IMPLEMENTATION PLAN

AWI has had a number of discussions with DAWR since July 2018 and have already noted those recommendations which will be put to shareholders for consideration as they require shareholder adoption to change the Constitution.

AWI will continue to discuss these issues with DAWR at joint fortnightly forum established for the purposes of monitoring the implementation of these recommendations (per recommendation 1.14.7), AWI will ensure that DAWR is aware of the proposed resolutions that will be put to shareholders at the EGM in early 2019.

The next SFA will be renegotiated in 2020 and AWI will review 15.4 to ensure it is not prohibitive in proposing amendments to AWI’s Constitution.

This recommendation also relates to 1.11.1-1.11.19.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

The next SFA will be renegotiated in 2020 and AWI will review 15.4 to ensure it is not prohibitive in proposing amendments to AWI’s Constitution.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Recommended
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
XXX 31 Jul 2019 Complete

 

FINDINGS

AWI’s Constitution should be reviewed to reflect the corporate governance recommendations arising from the Financial Services Royal Commission once it has concluded.

RECOMMENDATIONS

Review and update the AWI Constitution in light of the further and final recommendations arising from the Financial Services Royal Commission following its conclusion. This should be completed by 31st July 2019.

IMPLEMENTATION PLAN

AWI acknowledges the need to formalize and document the regular review, updating its policies and procedures as appropriate to ensure its governance standards reflect currently applicable ASX Principles.

AWI is monitoring the Royal Commission's proceedings, its interim report, and will review the final findings once published.

This recommendation also relates to. 1.1.2, 1.1.5, 1.9.4, 1.9.5, 1.9.8, 1.9.10, 1.10.1, 1.10.2, 1.10.3, 1.10.4, 1.10.5, 1.11.1-1.11.19 and 1.12.3

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

There were no items arising from the final report of the Royal Commission that directly impact AWI’s operations and governance. AWI will continue to review its governance on an ongoing basis to reflect applicable standards.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Critical
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Oct 2018 22 Nov 2019 Complete

 

FINDINGS

AWI needs to more actively monitor whether its Constitution and governance practices support a broader skills based Board.

Rule 13.3(d) of the AWI Constitution represents a dilemma for how the Board of AWI is structured in terms of balancing a desire to have deep representation of the wool industry with a requirement of public company independence of Directors and to satisfy its obligations in the SFA to have a broader skills based Board. It is possible that appropriate candidates that satisfy a skills-based matrix would not be able to easily obtain the requisite 100 eligible shareholder signatures required to seek nomination.

RECOMMENDATIONS

Publish the Board’s skills matrix and emphasise to shareholders the importance of a broad skills based Board in all Director election material in line with recommendation 1.9.4.

Delete Rule 13.3(d) of the AWI Constitution that specifies candidates obtain the requisite 100 eligible shareholder signatures required to seek nomination. This would make the AWI Director selection process aligned with other RDCs who do have a broader skills based Board. Industry representation is still a key requirement for the AWI Board and the skills matrix under clause 14.3(b) of the SFA specifically mentions this as a requirement. The purpose of the recommendation is to recalibrate the balance of skills on the AWI Board. This should be implemented by 31st October 2018. Please also refer to and implement in conjunction with recommendation 1.11.3.

IMPLEMENTATION PLAN

AWI acknowledges the first part of this recommendation and has commenced inclusion of a board’s skills matrix, including in the current 2018 Annual Report. AWI considers the second part of this recommendation to be problematic. AWI notes that the recommendation to repeal Rule 13.3(d) of the AWI Constitution, which requires a board candidate to obtain 100 shareholder signatures to seek nomination, is closely related to the process that will be decided for the new Board nomination Committee (BNC) under recommendation 1.12.3.

Recommendation 1.12.3 suggests that the new process of the BNC should be allowed to remove any candidate who was assessed as not meeting the sufficient requirements for the target skills. Currently, any candidate who has obtained their 100 signatures is able to stand for election. AWI believes that this current election process is more open.

AWI will present options to shareholders for their consideration at an Extraordinary General Meeting (EGM) in early 2019.

This recommendation also relates to. 1.1.2, 1.1.5, 1.9.4, 1.9.5, 1.9.8, 1.9.10, 1.10.1, 1.10.3, 1.10.4, 1.10.5, 1.11.3 and 1.12.3

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

AWI acknowledges the first part of this recommendation and has commenced inclusion of a board’s skills matrix, including in the current 2018 Annual Report.

An agreement was reached with industry for retention of the 100 shareholders signatures route. The proposed Extraordinary General Meeting (EGM) in early 2019 did not proceed.

A revised charter for the Board Nomination Committee has been approved in principle by the AWI Board meeting in May and an agreement was reached with industry representatives.

The revised charter is on the wool.com website.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Critical
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Oct 2018 22 Nov 2019 Complete

 

FINDINGS

Clause 14.3 of the SFA requires AWI to have a skills-based Board however this is not reflected in the Constitution.

RECOMMENDATIONS

Include a rule in the AWI Constitution that requires a skills-based Board. This should be completed by 31st October 2018.

IMPLEMENTATION PLAN

AWI acknowledges the benefits of having a skills-based Board and agrees to include a reference to a skills-based Board in the organisations Constitution consistent with the SFA, reflecting its changes from time to time.

This recommendation also relates to. 1.1.2, 1.1.5, 1.9.4, 1.9.5, 1.9.8, 1.9.10, 1.10.1, 1.10.3, 1.10.4, 1.10.5, 1.11.3 and 1.12.3

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

A new clause 14.5 relating to the requirement to have a skills-based board is included in the changes being put to shareholders at the 2019 AGM. The proposed change to the AWI constitution have been agreed by shareholders at the 2019 annual general meeting.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Replaceable rules - no criticality
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 22 Nov 2019 Complete

 

FINDINGS

Not contained in the AWI Constitution

RECOMMENDATIONS

Section 198B be included so that a negotiable instrument is only signed, drawn, accepted, endorsed or otherwise by two or more Directors.

IMPLEMENTATION PLAN

AWI acknowledges this recommendation relates to negotiable instruments, and notes AWI's suite of delegations.

As a minor change to AWI’s Constitution is required to implement this recommendation, this will be taken to shareholders for their consideration at an EGM in early 2019.

This recommendation also relates to 1.10.1 – 1.10.3, 1.11.1 – 1.11.19

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

This recommendation requires a minor change to AWI’s Constitution. The proposed change to the AWI constitution have been agreed by shareholders at the 2019 annual general meeting.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Replaceable rules - no criticality
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 22 Nov 2019 Complete

 

FINDINGS

Consistent. Section 198C also provides that the Board may vary a conferral of powers on the managing Director (which is not covered in Rule 14.1).

RECOMMENDATIONS

The powers to vary be included.

IMPLEMENTATION PLAN

AWI acknowledges that this recommendation relates to including the powers to vary.

As a minor change to AWI’s Constitution is required to implement this recommendation, this will be taken to shareholders for their consideration at an EGM in early 2019.

This recommendation also relates to 1.10.1 – 1.10.3, 1.11.1 – 1.11.19

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

This recommendation requires a minor change to AWI’s Constitution. The proposed change to the AWI constitution have been agreed by shareholders at the 2019 annual general meeting.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Replaceable rules - no criticality
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 22 Nov 2019 Complete

 

FINDINGS

Rule 13.3 provides that a Director will be elected at AGMs. However, only person who is nominated by the Board or by more than 99 shareholders (or a lesser number prescribed by law) who are entitled to vote is eligible to be appointed a Director. This has restricted the number of persons who is eligible to be elected at AGM to be a Director.

RECOMMENDATIONS

Rule 13.3 is amended so that any shareholder can nominate a person to be elected as Director.

IMPLEMENTATION PLAN

AWI notes that this recommendation relating to appointment of directors is closely related to the outcome of 1.10.4 and 1.12.3.

Recommendation 1.12.3 suggests that the new process of the BNC should be allowed to remove any candidate who was assessed as not meeting the sufficient requirements for the target skills. Currently, any candidate who has obtained their 100 signatures is able to stand for election. AWI believes that this current election process is more open.

These options will be taken to shareholders for their consideration at an EGM in early 2019.

This recommendation also relates to. 1.1.2, 1.1.5, 1.9.4, 1.9.5, 1.9.8, 1.9.10, 1.10.1, 1.10.3, 1.10.4, 1.10.5, 1.11.3 and 1.12.3

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

The 100-signature route for director candidates was retained as an element of the industry consensus agreement in March. No constitutional amendments on this point is required.

There is a requirement to amend the constitution to accommodate the external advertisement routes for director candidates. The proposed change to the AWI constitution have been agreed by shareholders at the 2019 annual general meeting.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Replaceable rules - no criticality
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 TBC Complete

 

FINDINGS

Not contained in the AWI Constitution

RECOMMENDATIONS

While section 201K would ordinarily be included in a company’s Constitution to give the Director the flexibility to appoint an alternate if necessary, this is usually on the basis that the Director is representing a particular shareholder or group of shareholders. Given the shareholding structure and purpose of RDCs and AWI in particular, it is not appropriate for AWI to include an equivalent of section 201K in its Constitution.

IMPLEMENTATION PLAN

AWI notes this comment in relation to alternate Directors and agrees with EY that no action is required.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

AWI notes this comment in relation to alternate Directors and agrees with EY that no action is required. AWI considers this recommendation completed.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Replaceable rules - no criticality
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 22 Nov 2019 Complete

 

FINDINGS

Section 203F(1) provides that a person ceases to be a managing Director if they cease to be a Director. Rule 14.1 provides that the managing Director ceases to be a managing Director upon him or her ceasing to hold office as a Director if the Board so resolved.

Section 203F(2) provides that the Directors may revoke or vary an appointment of a managing Director.

RECOMMENDATIONS

Rule 14.1 be amended to incorporate section 203F(1) so the managing director automatically ceases to be a managing director upon him or her ceasing to hold office as a director, and to include the rights of directors under section 203F(2).

IMPLEMENTATION PLAN

AWI acknowledges that this recommendation relates to the termination of appointment of managing director.

As a minor non-controversial change to AWI’s Constitution is required to implement this recommendation, and while AWI does not currently have a managing director, this will be taken to shareholders for their consideration at an Extraordinary General Meeting (EGM) in early 2019.

This recommendation also relates to 1.10.1 – 1.10.5, 1.111.1 – 1.11.19

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

This recommendation requires a minor change to AWI’s Constitution. The proposed change to the AWI constitution have been agreed by shareholders at the 2019 annual general meeting.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Replaceable rules - no criticality
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 22 Nov 2019 Complete

 

FINDINGS

Not contained in the AWI Constitution.

RECOMMENDATIONS

Section 204F be included to make it clear that a secretary holds office on the terms and conditions (including remuneration) that the directors determine.

IMPLEMENTATION PLAN

AWI acknowledges that this recommendation relates to the terms and conditions of office for secretaries.

As a minor change to AWI’s Constitution is required to implement this recommendation, this will be taken to shareholders for their consideration at an Extraordinary General Meeting (EGM) in early 2019.

This recommendation also relates to1.10.1 – 1.10.5, 1.111.1 – 1.11.19.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

This recommendation requires a minor change to AWI’s Constitution. The proposed change to the AWI constitution have been agreed by shareholders at the 2019 annual general meeting.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Replaceable rules - no criticality
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 22 Nov 2019 Complete

 

FINDINGS

Section 248A(1) provides that the directors may pass a resolution without a meeting if all of them entitled to vote on the resolution sign a document stating that they are in favour of the resolution set out in the document.

Rule 15.8 provides that a resolution is valid if it was signed by:

  • all director; or
  • a majority of the directors entitled to vote if notice has been given to all directors.
RECOMMENDATIONS

To demonstrate good corporate governance, Rule 15.8 be amended so that a resolution is only passed without a directors’ meeting if all the directors (as opposed to a majority of directors) entitled to vote sign the resolution.

IMPLEMENTATION PLAN

AWI acknowledges that this recommendation relates to the circulation of resolutions of companies with more than one director.

As a minor change to AWI’s Constitution is required to implement this recommendation, this will be taken to shareholders for their consideration at an Extraordinary General Meeting (EGM) in early 2019.

This recommendation also relates to 1.10.1, 1.10.2, 1.10.3, 1.11.1 -1.11.19.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

This recommendation requires a minor change to AWI’s Constitution. The proposed change to the AWI constitution have been agreed by shareholders at the 2019 annual general meeting.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Replaceable rules - no criticality
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 22 Nov 2019 Complete

 

FINDINGS

Consistent to a large extent except that section 248E(2) also provides that the directors must elect a new chair if a previously elected chair declines to act (as opposed to merely not present at the meeting).

Section 248E(2) used the term “must” which connotes a mandatory requirement for a new chair to be elected while Rule 15.4 used the term “may” which connotes an optional requirement.

RECOMMENDATIONS

Rule 15.4 be amended to be consistent with section 248E(2) to ensure that any meeting will be chaired.

IMPLEMENTATION PLAN

AWI acknowledges that this recommendation relates to chairing directors' meetings.

As a minor change to AWI’s Constitution is required to implement this recommendation, this will be taken to shareholders for their consideration at an EGM in early 2019.

This recommendation also relates to 1.10.1, 1.10.2, 1.10.3, 1.11.1 -1.11.19.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

This recommendation requires a minor change to AWI’s Constitution. The proposed change to the AWI constitution have been agreed by shareholders at the 2019 annual general meeting.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Replaceable rules - no criticality
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 22 Nov 2019 Complete

 

FINDINGS

Section 248F provides that unless the directors determined otherwise, the quorum for a directors’ meeting is 2 directors and the quorum must be present at all times during the meeting.

Rule 15.1(b) provides that the quorum is 2 directors or 50% of the number of directors if the company has more than 4 directors. The only exception to this requirement is that when the directors appoint a new director to increase the number of director so that it is sufficient to constitute a quorum. It also requires a quorum to be present at the meeting.

RECOMMENDATIONS

Rule 15.1(b) be amended to require a quorum to be present “at all times during the meeting”.

IMPLEMENTATION PLAN

AWI acknowledges that this recommendation relates to the quorum at directors' meetings.

As a minor change to AWI’s Constitution is required to implement this recommendation, this will be taken to shareholders for their consideration at an EGM in early 2019.

This recommendation also relates to 1.10.1, 1.10.2, 1.10.3, 1.11.1 -1.11.19.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

This recommendation requires a minor change to AWI’s Constitution. The proposed change to the AWI constitution have been agreed by shareholders at the 2019 annual general meeting.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Replaceable rules - no criticality
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 22 Nov 2019 Complete

 

FINDINGS

Section 249J(4) provides that a notice of meeting sent by fax or other electronic means is taken to be given on the business day after it is sent.

However, Rule 17.2 provides that such notice is considered to have been served when the transmission is sent

RECOMMENDATIONS

Rule 17.2 be amended so that a notice sent by electronic means is taken to be given on the business day after it is sent. This may avoid disputes or complaints when the notice is sent outside the normal business hours.

IMPLEMENTATION PLAN

AWI acknowledges that this recommendation relates to notice given by post or fax.

As a minor change to AWI’s Constitution is required to implement this recommendation, this will be taken to shareholders for their consideration at an EGM in early 2019.

This recommendation also relates to 1.10.1, 1.10.2, 1.10.3, 1.11.1 -1.11.19.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

This recommendation requires a minor change to AWI’s Constitution. The proposed change to the AWI constitution have been agreed by shareholders at the 2019 annual general meeting.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Replaceable rules - no criticality
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 22 Nov 2019 Complete

 

FINDINGS

Section 249J(5) provides that a notice of meeting given to a member by electronic means nominated by the member is taken to be given on the business day after the day on which the member is notified that the notice of meeting is available.

However, Rule 17.2 provides that such notice is considered to have been served when the transmission is sent

RECOMMENDATIONS

Rule 17.2 be amended so that a notice sent by electronic means is taken to be given on the business day after it is sent. This may avoid disputes or complaints when the notice is sent outside the normal business hours.

IMPLEMENTATION PLAN

AWI acknowledges that this recommendation relates to notice given by electronic means

As a minor change to AWI’s Constitution is required to implement this recommendation, this will be taken to shareholders for their consideration at an EGM in early 2019.

This recommendation also relates to 1.10.1, 1.10.2, 1.10.3, 1.11.1 -1.11.19.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

This recommendation requires a minor change to AWI’s Constitution. The proposed change to the AWI constitution have been agreed by shareholders at the 2019 annual general meeting.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Replaceable rules - no criticality
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 22 Nov 2019 Complete

 

FINDINGS

Not contained in the AWI Constitution

RECOMMENDATIONS

Section 249M be included

IMPLEMENTATION PLAN

AWI acknowledges that this recommendation relates to notice of adjourned meetings.

As a minor change to AWI’s Constitution is required to implement this recommendation, this will be taken to shareholders for their consideration at an EGM in early 2019.

This recommendation also relates to 1.10.1, 1.10.2, 1.10.3, 1.11.1 -1.11.19.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

This recommendation requires a minor change to AWI’s Constitution. The proposed change to the AWI constitution have been agreed by shareholders at the 2019 annual general meeting.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Replaceable rules - no criticality
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 22 Nov 2019 Complete

 

FINDINGS

Section 249T(1) provides that the quorum for a general meeting is 2 members and the quorum must be present at all times during the meeting. Rule 11.2(a) provides that the quorum is 60% of all shareholders or 50 shareholders (whichever is lesser) and that no business may be transacted unless a quorum is present at the commencement of the meeting.

Section 249T(2) sets out how quorum is determined. There is no similar provision in the AWI Constitution.

Sections 249T(3) and (4) provide that if quorum is not present within 30 minutes after the meeting time, the meeting is adjourned to the date, time and place as specified by the director (otherwise the same date, time or place). Rule 11.2(b) provides that the meeting is dissolved if quorum is not present within 30 minutes unless the Chairman adjourns the meeting. The adjourned meeting will be dissolved if no quorum is present at the adjourned meeting.

RECOMMENDATIONS
  • Rule 11.2(a) be amended to require a quorum to be present “at all times during the meeting” (as opposed to only at the commencement of the meeting);
  • Section 249T(2) be included; and
  • Rule 11.2(b) be amended to be consistent with sections 249T(3) and (4)
IMPLEMENTATION PLAN

AWI acknowledges that this recommendation relates to quorums.

As a minor change to AWI’s Constitution is required to implement this recommendation, this will be taken to shareholders for their consideration at an EGM in early 2019.

This recommendation also relates to 1.10.1, 1.10.2, 1.10.3, 1.11.1 -1.11.19.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

This recommendation requires a minor change to AWI’s Constitution. The proposed change to the AWI constitution have been agreed by shareholders at the 2019 annual general meeting.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Replaceable rules - no criticality
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 22 Nov 2019 Complete

 

FINDINGS

Not contained in the AWI Constitution.

RECOMMENDATIONS

Section 249W(2) be included.

IMPLEMENTATION PLAN

AWI acknowledges that this recommendation relates to business at adjourned meetings.

As a minor change to AWI’s Constitution is required to implement this recommendation, this will be taken to shareholders for their consideration at an EGM in early 2019.

This recommendation also relates to 1.10.1, 1.10.2, 1.10.3, 1.11.1 -1.11.19.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

This recommendation requires a minor change to AWI’s Constitution. The proposed change to the AWI constitution have been agreed by shareholders at the 2019 annual general meeting.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Replaceable rules - no criticality
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 22 Nov 2019 Complete

 

FINDINGS

Section 250E(1) provides that at a meeting of members of a company with a share capital, each member has 1 vote on a show of hands, and 1 vote for each share they hold on a poll. Rule 12.1(b) and Rule 5.3 provide that on a poll, each shareholder has 1 vote for each whole $100 Rolling Wool Levy Amount registered by the Company at the time of the vote. The Board will make its determination not later than 35 days before the AGM.

Section 20E(3) provides that the chair has a casting vote and any vote they have in their capacity as a members. Rule 5.3 provides that the Chairman does not have a second or casting vote if he or she is a shareholder.

RECOMMENDATIONS

Rule 5.3 be amended so that the Board make its determination before any general meeting (as opposed to AGM only).

IMPLEMENTATION PLAN

AWI acknowledges that this recommendation relates to how many votes a member has and transfers of shares.

As a minor change to AWI’s Constitution is required to implement this recommendation, this will be taken to shareholders for their consideration at an EGM in early 2019.

This recommendation also relates to 1.10.1, 1.10.2, 1.10.3, 1.11.1 -1.11.19.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

This recommendation requires a minor change to AWI’s Constitution. The proposed change to the AWI constitution have been agreed by shareholders at the 2019 annual general meeting.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Replaceable rules - no criticality
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 22 Nov 2019 Complete

 

FINDINGS

Section 1072A(2) provides that the personal representative is entitled to the same rights as the deceased shareholder whether or not registered as a shareholder.

Rule 9 contains similar concepts. However, rule 12.2 provides that the personal representative may vote at the general meeting if he or she satisfies the Board at least 48 hours before the general meeting that he or she is a personal representative.

RECOMMENDATIONS

Rule 12.2 be amended so the personal representative can vote at the meeting as soon as they satisfy the Board that he or she is a personal representative.

IMPLEMENTATION PLAN

AWI acknowledges that this recommendation relates to the transmission of shares on death.

As a minor change to AWI’s Constitution is required to implement this recommendation, this will be taken to shareholders for their consideration at an EGM in early 2019.

This recommendation also relates to 1.10.1, 1.10.2, 1.10.3, 1.11.1 -1.11.19.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

This recommendation requires a minor change to AWI’s Constitution. The proposed change to the AWI constitution have been agreed by shareholders at the 2019 annual general meeting.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Replaceable rules - no criticality
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 22 Nov 2019 Complete

 

FINDINGS

Not contained in the AWI Constitution

RECOMMENDATIONS

Section 1972B be included.

IMPLEMENTATION PLAN

AWI acknowledges that this recommendation relates to the transmission of shares on bankruptcy.

As a minor change to AWI’s Constitution is required to implement this recommendation, this will be taken to shareholders for their consideration at an EGM in early 2019.

This recommendation also relates to 1.10.1, 1.10.2, 1.10.3, 1.11.1 -1.11.19.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

This recommendation requires a minor change to AWI’s Constitution. The proposed change to the AWI constitution have been agreed by shareholders at the 2019 annual general meeting.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Replaceable rules - no criticality
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 22 Nov 2019 Complete

 

FINDINGS

Not contained in the AWI Constitution

RECOMMENDATIONS

Section 1972D be included.

IMPLEMENTATION PLAN

AWI acknowledges that this recommendation relates to the transmission of shares on mental incapacity.

As a minor change to AWI’s Constitution is required to implement this recommendation, this will be taken to shareholders for their consideration at an EGM in early 2019.

This recommendation also relates to 1.10.1, 1.10.2, 1.10.3, 1.11.1 -1.11.19.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

This recommendation requires a minor change to AWI’s Constitution. The proposed change to the AWI constitution have been agreed by shareholders at the 2019 annual general meeting.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Constitution Agree / Industry Agree Replaceable rules - no criticality
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 22 Nov 2019 Complete

 

FINDINGS

Section 1072F(4) provides that the directors may suspend registration of transfer of shares.

RECOMMENDATIONS

Rule 8 be amended to give the directors the flexibility to suspend registration of transfer of shares.

IMPLEMENTATION PLAN

AWI acknowledges that this recommendation relates to directors having the flexibility to suspend registration of transfer of shares.

As a minor change to AWI’s Constitution is required to implement this recommendation, this will be taken to shareholders for their consideration at an EGM in early 2019.

This recommendation also relates to 1.10.1, 1.10.2, 1.10.3, 1.11.1 -1.11.19.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

This recommendation requires a minor change to AWI’s Constitution. The proposed change to the AWI constitution have been agreed by shareholders at the 2019 annual general meeting.

 

IMPLEMENTATION PROGRESS:
100%

24 out of 24 recommendations completely implemented

 

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jul 2019 31 Jul 2019 Complete
 
FINDINGS

The Review was unable to assess section 4.8 of the SFA due to a lack of evidence to demonstrate that licence for material shared with the Commonwealth is obtained. AWI confirmed that their practice for complying with this obligation is that they do not licence any third party intellectual property. However, this is not documented. Better and standard practice is for companies to maintain a register of third party IP that outlines copyright and licences.

 

RECOMMENDATIONS

Document the current process of maintaining a register for licences and regularly review it to confirm that when material is shared with the Commonwealth that this obligation is satisfied.

Maintain a register for third party IP that outlines copyright and licences. Use this register to track licences obtained from third parties and confirm that licences have been obtained for the Commonwealth where this information is provided to the Commonwealth. This should be implemented by 31st July 2019.

 

IMPLEMENTATION PLAN

To date, AWI has managed this SFA requirement by ensuring all information provided to the Commonwealth does not contain third party IP.

However, AWI acknowledges it doesn’t maintain a register of third-party IP for materials that are provided to the Commonwealth.

Going forward to address this recommendation AWI is currently developing a new process which will require material shared with the Commonwealth to be reviewed for third party IP, and in cases where it does contain third party IP, details of this together with any applicable licences will be recorded and maintained in a register of third-party IP.

It is envisaged that this will be fully implemented by March 2019.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.`

 

PROGRESS ON IMPLEMENTATION

AWI has implemented a process whereby a Register will be kept to record compliance with the SFA. In addition, training materials were developed in order to assist AWI staff to understand the SFA obligation

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Critical

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jul 2019 22 Nov 2019 Complete
 
FINDINGS

AWI does not fully comply with section 14.1 of the SFA as they do not adequately maintain, implement and regularly review a framework of good corporate governance practice (as assessed in section 7.9 Corporate governance). Governance documents are reviewed annually however this process is not documented and the Constitution has not been updated since 2011, which is prior to the introduction of the ASX Corporate Governance Principles in 2014.

 

RECOMMENDATIONS

Strengthen corporate governance framework in line with the recommendations and timeframes 1.9.1 – 1.9.10 recommended in Annexure 1.9 Corporate governance. This needs to consider clear ownership of Board review, government framework and approach to regularly refresh frameworks. It should be developed through extensive stakeholder consultations. Updates should be made available on AWI’s website. This should be implemented by 31st July 2019.

 

IMPLEMENTATION PLAN

To date, AWI has managed this SFA and best practice requirement by regularly reviewing its framework of corporate governance documents.

However, AWI has not recorded the dates of each of these reviews.

Going forward, when these reviews are conducted, the date of the most recent review will be recorded to provide greater transparency.

AWI has already commenced this process. It is envisaged that all related corporate documents and polices will be reviewed as appropriate. To further ensure policies are reviewed in the appropriate timeframe, the FAC monitor and ensure compliance.

It is envisaged this will be completed by July 2019.

This recommendation also relates to 1.1.2, 1.1.3, 1.1.5, 1.9.1-1.9.10, 1.10.1, 1.10.3, 1.10.4, 1.10.5 and 1.12.3.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

An extensive consultation process – run through AWI’s Woolgrower Industry Consultative Committee (ICC) – has allowed woolgrowers to identify, agree and ultimately support alternative methods of addressing the intent of the recommendations while protecting the democratic nature of the director election model and shareholder rights.

As a result of this consensus agreement, AWI will no longer be required to hold the extraordinary general meeting (EGM) that had been scheduled for early 2019. The proposed changes to the AWI constitution will be put to shareholders at the 2019 and 2020 annual general meetings. This was deemed to be in the best interests of Australian woolgrowers.

AWI’s policies and charters are currently under review and will reflect the outcome of shareholders’ decisions at the AGM.

AWI has had a policy to review its governance suite for compliance with applicable requirements on a continuous basis. Policy & charter documents placed on the website now record the date of last review/update.

The agenda for the 2019 AGM will include various proposed revisions to the constitution arising from commentary in the Review of Performance and subsequent consultation with industry. These revisions, while largely agreed, require a shareholder vote at a general meeting and so recommendation 1.1.2 will not able to be noted as completed until after the AGM in November.

The proposed change to the AWI constitution have been agreed by shareholders at the 2019 annual general meeting.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Mandatory

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 31 Aug 2019 Complete
 
FINDINGS

AWI does not fully comply with section 14.2 of the SFA as the documented rules on board appointments and composition does not include requirements for diversity, renewal and succession planning.

 

RECOMMENDATIONS

Update the Board Charter to include requirements for diversity, renewal and succession planning. We recommend that diversity is an additional characteristic to be considered as part of the assessment of key skills for the Board. This should be implemented by 31st January 2019.

 

IMPLEMENTATION PLAN

Since the report has been finalised AWI has developed, and the Board has approved, a Diversity Policy which was adopted by the AWI Board at its September 2018 meeting.

AWI will provide guidance to the BNC that in addition to recommending candidates for shareholder consideration, they should also take into account renewal and succession planning as specific factors.

Given AWI’s direct election model by shareholders, AWI cannot guarantee diversity, succession and renewal in the election of future directors, and will recommend the BNC take these factors into account in making its recommendation to shareholders.

This will be implemented prior to the next AWI director elections in 2019.

This recommendation also relates to 1.1.5, 1.9.8 and 1.12.4.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI has developed a Diversity Policy, which was uploaded onto www.wool.com in September 2018 (see https://www.wool.com/globalassets/start/about-awi/who-we-are/corporate-governance/awi-diversity-policy-august-2018.pdf).

Revisions of the Board charter have been compiled and were approved by the AWI Board.

The updated Board charter has been placed on the wool.com website.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Mandatory

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 22 Nov 2019 Complete
 
FINDINGS

AWI does not fully comply with section 14.3 of the SFA as the assessment completed of the board skills does not include legal and compliance.

 

RECOMMENDATIONS

Ensure that the skills being assessed are in alignment with those outlined in the SFA, and in conjunction with other recommendations relating to implementation of Board skills matrix. This should be implemented by 31st January 2019. Please also refer to recommendation 1.10.5 for recommended amendment to the Constitution.

 

IMPLEMENTATION PLAN

AWI recognises that currently no AWI Director has legal and compliance skills, however the Company Secretary and General Manager of Legal Services advise the Board on issues as required. On a broader nature, the Board seeks external expert counsel and advice – including legal counsel - on matters which they or the management team do not possess expertise.

Since the report has been finalised AWI has compiled a Board skills matrix which has been included in the organisation's 2018 Annual Report. The skills criteria in the matrix has included all matters set out in section 14.3 of the SFA. AWI's Board charter will be reviewed to ensure consistency with the requirements in the SFA.

This recommendation also relates to 1.9.4, 1.9.5, 1.12.3.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

Since the report has been finalised AWI has compiled a Board skills matrix which has been included in the organisation's 2018 Annual Report. The skills criteria in the matrix has included all matters set out in section 14.3 of the SFA.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Mandatory

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 30 Jun 2019 Complete
 
FINDINGS

AWI does not fully comply with section 14.4 of the SFA as the Board Nomination Committee Charter conflicts with the requirements of the SFA as it does not have membership of a majority of Independent Directors. The BNC Charter states membership should have two independent Directors and three persons who are not Directors.

 

RECOMMENDATIONS

Amend section 14.4 of the SFA in line with recommendation 1.12.3 for the Board Nomination committee in Annexure 1.12 Assessment of proxies and Board Nomination Committee. This change should be implemented by 31st January 2019.

 

IMPLEMENTATION PLAN

The ASX Principles provide guidance and tests for boards to determine the independence of their directors. AWI’s assessment of its directors based on the ASX guiding principles for independence, is that all of its directors are independent.

EY’s assessment of independence differs from the currently applicable tests in the ASX Principles.

AWI’s rationale for this determination based on the application of EY’s determination of independence could make it difficult for woolgrowers to be considered eligible for director elections.

However specifically in relation to the new BNC model (outlined in recommendation 1.12.3) AWI will meet the intent of this recommendation, by ensuring that the majority of BNC members are not directors of AWI. AWI has proposed that of the five members, only two are directors of AWI, and hence the BNC will have a majority of independent members.

AWI will take this recommendation to its shareholders for their consideration at an Extraordinary General Meeting (EGM) in early 2019.

This recommendation also relates to. 1.1.2, 1.1.5, 1.9.4, 1.9.5, 1.9.8, 1.9.10, 1.10.1, 1.10.3, 1.10.4, 1.10.5, 1.11.3 and 1.12.3

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

An extensive consultation process – run through AWI’s Woolgrower Industry Consultative Committee (ICC) – has allowed woolgrowers to identify, agree and ultimately support alternative methods of addressing the intent of the recommendation while protecting the democratic nature of the director election model and shareholder rights.

The new Board Nomination Committee Charter will be updated to reflect this consensus agreement and will enable AWI to comply with Clause 14.4 of the SFA.

The updated charter has been placed on AWI's website.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
1 Jan 2020 1 Jan 2020 Complete
 
FINDINGS

AWI does not fully comply with section 18.2 of the SFA as they did not agree the Terms of Reference for this performance review at least six months prior to the commencement of the Review. They did however commence negotiations approximately six months prior to the Review commencement

 

RECOMMENDATIONS

Agree Terms of Reference for the next performance review with the Commonwealth at least six months prior to the Review commencing. Amend the SFA to include an option to vary the Terms of Reference through agreement between AWI and the Department. Implement this change beyond 2019.

 

IMPLEMENTATION PLAN

AWI acknowledges this finding and notes that negotiations around the Terms of Reference for the Review of Performance had commenced with government in late 2017. However, due to the nature of broader industry and government discussions at the time, the subsequent Terms of Reference ROP were delayed with the Minister announcing the Terms of Reference in March 2018.

Going forward, AWI will work with DAWR to ensure we meet the timeframe.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

Going forward, AWI will work with the Department to ensure we meet the timeframe, the next Review of Performance is not due until 2021.

Progress on the implementation of the 2018 ROP recommendations will be reported via this ROP Implementation Portal.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 31 Jan 2019 Complete
 
FINDINGS

AWI’s internal SFA compliance reporting is not against all obligations and not all information required to demonstrate compliance is outlined in the reports.

 

RECOMMENDATIONS

Strengthen compliance reporting against the Statutory Funding Agreement so that non- compliance is identified more proactively by AWI and actions are able to be taken sooner. This change should be implemented by the next reporting period following the review and by 31st January 2019.

 

IMPLEMENTATION PLAN

Since 2012 AWI has reported on its compliance against the SFA, to the government. This compliance report was drafted with input from departmental officers at the time and did not include all SFA clauses, but rather only reported against those clauses requiring active reporting.

Since the ROP was delivered, AWI has updated its SFA compliance report and now reports against each SFA clause. This was submitted to the government for the first time in its new form on 27 August 2018. AWI will continue to work with the department to improve this reporting. AWI will publish this report on its website for greater transparency from December 2018.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI has redrafted its SFA compliance report to ensure every clause in the Agreement is reported against.

As per our agreement with the Commonwealth this document is updated after every six-monthly Statutory Finding Agreement meeting.

A copy of this document is provided to the Department after it has been approved by our Internal Finance Audit Committee (FAC).

This process is undertaken to ensure full transparency between AWI, and the Commonwealth occur.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Critical

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
30 Apr 2019 30 Jun 2019 Complete
 
FINDINGS

Independent woolgrower research indicated that 44% of sampled woolgrowers are concerned about the effectiveness of AWI investment of funds. Of this sample, 22% believed that AWI is investing in the wrong areas.

Various stakeholder interviews also revealed some concerns on the lack of alignment regarding aspects of AWI’s role within the Australian wool industry. For instance, some stakeholders questioned whether AWI has gone beyond its remit of a not-for-profit organisation with the development of the WoolQ.

 

RECOMMENDATIONS

Develop definitions and boundaries on what kind of investment activities are considered within AWI’s remit as a levy-funded, not-for-profit organisation.

This should be developed by 30th April 2019.

 

IMPLEMENTATION PLAN

AWI is currently updating the documentation and policies regarding the definitions and criteria used to assess investments in line with AWI's Constitution, purpose, vision and mission statement.

This recommendation also relates to 1.2.1, 1.2.2

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI has created investment protocol guidelines that outline the considerations for investment of AWI funds. This includes definitions of what constitutes market failure and public good considerations. The investment protocols also outline the considerations for identifying collaboration opportunities and IP requirements. This policy has been made available for all employees to access on the AWI intranet, as with all other policies.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance For Shareholder Consideration Critical

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Oct 2018 1 Jan 2020 Complete
 
FINDINGS

There is no maximum length of directorship for Board Members. Better practice indicates that leaping tenure can impact the independence of an individual. The ASX Corporate Governance Principles outline there should be consideration for the length of time someone has been the Director of the entity where his or her independence may have been compromised. It also outlines that after 10 years due consideration should be given to whether or not a director remains independent.

 

RECOMMENDATIONS

Implement maximum periods of Board Membership including for the Board Chair. We recommend ten years. We also recommend a minimum roll off period of two years (period of time Directors must remain off the Board before standing for re-election).

The fact that a Director has served on a Board for a substantial period can mean that they have become too close to management and previous Board discussions to be considered independent. This recommendation should be reflected in the Constitution and applied in practice during the next Director election cycle.

 

IMPLEMENTATION PLAN

The ASX Principles provide guidance and tests for boards to determine appropriate tenure of directors, particularly after serving ten years.

Currently, there is no restriction within the ASX Principles on tenure of directors. The Principles require annual testing of independence after ten years.

AWI currently undertakes this testing in accordance with the ASX Principles with directors who have served more than ten years.

AWI recognizes the potential tension of balancing renewal of the board, with the retention of corporate knowledge of serving directors. AWI will take this recommendation to its shareholders for their consideration at an Extraordinary General Meeting (EGM) in early 2019.

This recommendation also relates to 1.9.10, 1.10.1.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

An extensive consultation process – run through AWI’s Woolgrower Industry Consultative Committee (ICC) – has allowed woolgrowers to discuss alternative methods of addressing the intent of the recommendation while protecting the democratic nature of the director election model and shareholder rights. A motion was put to the 2021 AGM to amend AWI’s Constitution to limit Director tenure to a maximum of 10 years. The motion was agreed to and the Constitution has been amended.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 31 Jul 2019 Complete
 
FINDINGS

There is inadequate guidance for implementation of the Code of Conduct. There is no references made to external communication, social media channels. Further there are a lack of examples provided in plain language and mechanism for people to seek advice. No reference is made to a whistleblowing policy, mechanism and consequences.

 

RECOMMENDATIONS

Review and update the Code of Conduct to incorporate gaps identified from better practice:

• Provide external communication

• Provide social media channels

• Provide examples provided in plain language

• Provide a mechanism for persons to seek advice

• Provide a reference to a whistleblowing policy, mechanism and consequences

These should be implemented by 31st January 2019.

 

IMPLEMENTATION PLAN

AWI will complete a review of its Code of Conduct and Business Ethics and incorporate the recommendations as appropriate taking into account the issues raised in the recommendation including the implementation and associated processes.

This recommendation also relates to 1.9.3, 1.9.6.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

Revisions to the code of Conduct and business ethics were approved at AWI’s June board meeting.

A whistle-blower policy was approved at AWI’s June Board meeting 2019. These policies have been placed on the wool.com website.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 31 Jul 2019 Complete
 
FINDINGS

There is opportunity to improve the process followed in a potential breach of the code of conduct. In line with good governance principles, more transparency of the investigation and recommendations for a potential Code of Conduct breach by a Director would be expected. Independent reviews are commonly used for potential breaches of the leadership of large organisations.

 

RECOMMENDATIONS

Develop an escalation matrix to support treatment of potential breaches of the Code of Conduct. This should include specific guidance on processes and escalations dependent on the role of the person and the severity of the potential breach. The highest escalation of potential breaches, including for Board Members, should be the subject of independent investigation by a reputable third party. These updates should be made by 31st January 2019.

 

IMPLEMENTATION PLAN

AWI will complete a review of its Code of Conduct and Business Ethics and incorporate the recommendations as appropriate taking into account the issues raised in the recommendation including the implementation and associated processes.

This recommendation also relates to 1.9.2, 1.9.6.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

Revisions to the Code of Conduct and business ethics were approved at AWI’s June board meeting.

These revisions included escalation procedures for matters that may be raised. This policy has been placed on the wool.com website.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jul 2019 23 Oct 2018 Complete
 
FINDINGS

AWI has a document that outlines for each Director’s skills against those in the SFA in their Board skills matrix. This is currently not publicly available; however, AWI indicated that this matrix will be included in its Annual Report 2017-18 and thereafter. As outlined in Annexure 1. 1 Legal compliance the skills are also not in alignment with those in the SFA.

 

RECOMMENDATIONS

Publicly disclose the Board skills needed by the Board. Consider if this is disclosed as a narrative, a table, or a combination of narrative and a table. The Board skills matrix should be publicly disclosed by 31st July 2019. As a minimum, ensure that the skills are in alignment with the SFA. This should be disclosed on the AWI website and the Board skills matrix should then be reviewed annually. [Please also refer to recommendation 1.10.4 and 1.1.4 for related recommendations about achievement of a skills based Board.] This recommendation is in alignment with the practices of Dairy Australia which is included as an example in Annexure 14.

 

IMPLEMENTATION PLAN

AWI has compiled a Board skills matrix which has been included in the organisation's 2018 Annual Report. The skills criteria in the matrix has included all matters set out in section 14.3 of the SFA. AWI's Board charter will be reviewed to ensure consistency with the requirements in the SFA.

This recommendation also relates to 1.1.4, 1.9.4, 1.9.5, 1.10.4, 1.10.5, 1.12.3.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI has compiled a Board skills matrix, which has been disclosed in the 2017-18 Annual Report, published on the AWI website.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Critical

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 16 Mar 2019 Complete
 
FINDINGS

AWI currently engages the services of an independent governance advisor who provides advice to the Board on it being a skills-based Board. He also conducts the annual performance review of the Board as a whole and as against each individual Director (assessing also their skills).

However, there is no documented guidance in terms of how to implement a skills based Board. The process to assess the skills of the Board is not outlined and the current assessment is done at a high level.

 

RECOMMENDATIONS

Develop guidelines for implementation of a skills-based Board. These should include how the competencies of each Board Member should be reviewed and assessed, either following completion of a questionnaire by each Director or by some other method. This should be implemented by 31st January 2019.

 

IMPLEMENTATION PLAN

AWI has undertaken a questionnaire method for each Director with peer and external review applied to the Board skills matrix 2018. AWI believes it meets current guidance in ASX Governance Principles. AWI's Board skills matrix has been included in the organisation's 2018 Annual Report.

Going forward it is AWI’s intention to provide further detail of this process to allow greater awareness of the various governance processes undertaken within AWI in its annual reports.

Since the Report has been delivered, the AWI Board has commissioned new external expertise to advise AWI on a range of governance related issues.

This recommendation also relates to. 1.1.2, 1.1.4, 1.1.5, 1.9.4, 1.9.5, 1.9.8, 1.9.10, 1.10.1, 1.10.3, 1.10.4, 1.10.5, 1.11.3 and 1.12.3.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI has undertaken a questionnaire method for each Director with peer and external review applied to the Board skills matrix 2018. AWI believes it meets current guidance in ASX Governance Principles. AWI's Board skills matrix has been included in the organisation's 2018 Annual Report.

Going forward it is AWI’s intention to provide further detail of this process to allow greater awareness of the various governance processes undertaken within AWI in its annual reports.

Since the Report has been delivered, the AWI Board has commissioned new external expertise to advise AWI on a range of governance related issues.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 31 Jul 2019 Complete
 
FINDINGS

The Conflicts of Interest policy is outlined in the Code of Conduct and the Review identified the following opportunities for improvement based on better practice guidelines:

• Has a brief definition and does not describe what real and perceived conflicts are. It does provide examples of when conflicts of interest may occur.

• Does not provide an overview of Directors’ duties

• Does not describe the process for disclosure including the register and a standing agenda item at Board meetings

• Does not provide direction as the point at which conflicts are so material that they effectively prohibit the individual from performing in their roles

• Does not describe what is expected of a Director if the conflict is significant

 

RECOMMENDATIONS

Review and update the Conflict of Interest policy to incorporate:

• More comprehensive definition of a conflict of interest

• An overview of Directors’ duties

• Point of contact for guidance on conflicts, including guidance on how to manage conflicts and consult when the situation changes

• Description of the process for disclosure including the register and a standing agenda item at Board meetings

• Direction as the point at which conflicts are so material that they effectively prohibit the individual from performing in their roles

• Describe what is expected of a Director if the conflict is significant

Current practice to manage conflicts of interest, including general and perceived conflict, can be further strengthened by providing greater clarity and transparency to growers. This should be implemented by 31st January 2019.

 

IMPLEMENTATION PLAN

AWI will complete a review of its Code of Conduct and Business Ethics and incorporate the recommendations as appropriate taking into account the issues raised in the recommendation including the implementation and associated processes. This review will also include enhanced provisions in relation to Conflict of Interests matters.

This recommendation also relates to 1.9.2, 1.9.3.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

Revisions to the Code of Conduct and business ethics were finalised at the June board meeting. These revisions included provisions in relation to conflicts of interest matters. This policy has been placed on the wool.com website.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Critical

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 31 Jan 2019 Complete
 
FINDINGS

The executive performance review process has no documentation provided that outlines this process and provides guidance to company officers. Evidence of the outcome of executive performance reviews was provided to the Review. It is the responsibility of the Remunerations and Appointments Committee to ensure AWI has an effective process as outlined in its Charter.

 

RECOMMENDATIONS

Develop documentation that outlines the executive performance review process and provides guidance to company officers. More generally AWI should review policies and procedures that support the implementation, transparency and effectiveness of governance arrangements. These updates should be implemented by 31st January 2019.

 

IMPLEMENTATION PLAN

Currently AWI has a global performance review process which is documented and reported in the Human Resource (HR) information system. The HR team provides guidance, training and support to all employees and their managers to effectively review staff performance.

Going forward AWI has commenced a review and updated as appropriate, the organisation's Remuneration and Performance Management System Policies. importantly this review will cover items not specifically addressed in individual’s KPIs, such as performance and behaviour aligned to ‘the woolgrower test’ and AWI’s corporate values.

It is expected this will be presented to the Board’s Remuneration and Appointments Committee (RAC) and Board meeting in November 2018.

Following their consideration, implementation of the policies will commence to support a culture of high performance being embedded across the company globally.

This recommendation also relates to 1.6.3 and 1.14.5.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI has always had a performance review process, however as EY have noted, it hasn’t been formally documented. AWI has documented its performance review process into a new policy - the AWI Group Performance Management System - which was approved by the AWI Board in 22 November 2018.

The policy clearly outlines the performance review process for all employees, including the Executive and CEO. The policy also includes demonstration of the Company’s Corporate values and The Woolgrower Test as a performance measure.

The policy is available for all employees to access on the AWI intranet, as with all other policies.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 31 Jul 2019 Complete
 
FINDINGS

AWI largely complies with the ASX Corporate Governance Principles based on review of all governance documentation and activities, however they are lacking a board diversity policy.

Note: the alignment of the constitution with ASX principles has been assessed separately.

 

RECOMMENDATIONS

Where AWI does not align with the ASX Corporate Governance Principles, include documented statements in order to be transparent on where alternative approaches are intentionally being taken to achieve an equivalent outcome. Please refer to recommendation 1.1.3 for recommendation specifically relating to adding a Board Diversity Policy. This update should be implemented by 31st January 2018.

 

IMPLEMENTATION PLAN

Since the report has been finalised AWI has developed, and the Board has approved, a Diversity Policy which was adopted by the AWI Board at its September 2018 meeting.

AWI will provide guidance to the BNC that in addition to recommending candidates for shareholder consideration, they should also take into account renewal and succession planning as specific factors.

Given AWI’s direct election model by shareholders, AWI cannot guarantee diversity, succession and renewal in the election of future directors, and will recommend the BNC take these factors into account in making its recommendation to shareholders.

This will be implemented prior to the next AWI director elections in 2019.

This recommendation also relates to. 1.1.2, 1.1.3, 1.1.5, 1.9.4, 1.9.5, 1.9.8, 1.9.10, 1.10.1, 1.10.3, 1.10.4, 1.10.5, 1.11.3 and 1.12.3

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI has developed a Diversity Policy, which was uploaded onto www.wool.com in September 2018 (see https://www.wool.com/globalassets/start/about-awi/who-we-are/corporate-governance/awi-diversity-policy-august-2018.pdf).

 

IMPLEMENTATION PROGRESS (100%)
1.9.9
  THEME AWI POSITION CRITICALITY Governance Agree / Industry Agree Recommended   EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS 31 Oct 2018 1 Jan 2020 Complete   FINDINGS There is an opportunity to strengthen governance mechanisms of accountability of the board to levy payers   RECOMMENDATIONS Strengthen the mechanisms of accountability of the Board to levy payers, includi...

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Oct 2018 1 Jan 2020 Complete
 
FINDINGS

There is an opportunity to strengthen governance mechanisms of accountability of the board to levy payers

 

RECOMMENDATIONS

Strengthen the mechanisms of accountability of the Board to levy payers, including:

• a new requirement in the Constitution regarding explicit Board performance criteria and a requirement for reporting on performance in the Annual Report. Performance measures should be both annual and strategic for the conduct and operation of the Board, relating to how it discloses its accountabilities to shareholders and levy payers.

• modification of section 18 of the SFA to require the Review of Performance to be commissioned by the Department and the Terms of Reference to include an evaluation of Board contribution to performance This should be implemented by 31st October 2018.

 

IMPLEMENTATION PLAN

Going forward it is AWI’s intention to provide further detail of this process to allow greater awareness of the various governance processes undertaken within AWI in its annual reports.

This recommendation also relates to 1.8.2, 1.9.9

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

There is updated reporting on Board performance criteria in AWI’s Annual Reports. In 2020 the Commonwealth introduce a new standardised 10-year principles based Statutory Funding Agreement (SFA). The new SFA sets out the Terms of Reference for future reviews of performance as being against the five performance principles in the SFA and the KPIs set out in a separate companion document. The Secretary of the Department of Agriculture, Fisheries and Forestry may request any additional items to be included in the performance review.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Oct 2018 1 Jan 2020 Complete
 
FINDINGS

The definition of an independent Director as outlined in AWI’s Board Charter is generally compliant with the guidance outlined in the ASX Corporate Governance Principles. However, there are two areas where there are opportunities to strengthen this definition:

• There is currently no clause that considers the length of directorship which is one of the considerations in the ASX Corporate Governance Principle

• AWI is slightly different to an ASX listed company as its shareholding is similar to a company limited by guarantee as opposed to a company limited by shares only. As the voting entitlement that fluctuates with the WoolPoll means that no individual shareholder could reach a 5% substantial voting entitlement test

 

RECOMMENDATIONS

Enhance the definition of an independent Director included in the Board Charter to:

• Include a clause relating to the length of directorship in line with recommendation 1.9.1

• Revise the clause relating voting entitlements to better reflect that a Directors role as a Woolgrower can impact their independence Include these changes in the Board Charter by 31st October 2018.

 

IMPLEMENTATION PLAN

The ASX Principles provide guidance and tests for boards to determine appropriate tenure of directors, particularly after serving ten years.

Currently, there is no restriction within the ASX Principles on tenure of directors. The Principles require annual testing of independence after ten years.

AWI currently undertakes this testing in accordance with the ASX Principles with directors who have served more than ten years.

AWI recognizes the potential tension of balancing renewal of the board, with the retention of corporate knowledge of serving directors

AWI will take this recommendation to its shareholders for their consideration at an Extraordinary General Meeting (EGM) in early 2019.

This recommendation also relates to. 1.1.2, 1.1.5, 1.9.1, 1.9.4, 1.9.5, 1.9.8, 1.9.10, 1.10.1, 1.10.3, 1.10.4, 1.10.5, 1.11.3 and 1.12.3

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

An extensive consultation process – run through AWI’s Woolgrower Industry Consultative Committee (ICC) – has allowed woolgrowers to discuss alternative methods of addressing the intent of the recommendation while protecting the democratic nature of the director election model and shareholder rights.

As a result of this consensus agreement, AWI has provided additional reporting relating to the testing of director independence in the 2018/2019 Annual Report.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Critical

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
22 Nov 2018 31 Jul 2019 Complete
 
FINDINGS

The use of open proxy votes can have the ability to change the outcome of resolutions, and the outcomes of elections of Directors. This is dependent on how many open proxies shareholders direct to the Chair of the meeting.

 

RECOMMENDATIONS

Open proxy votes allocated to sitting Directors for casting in elections of Directors should be exercised according to the BNC recommendation. The Rules and Procedures Governing the Election of Directors and the Board Nomination Committee Charter should be updated to reflect this change. This should be implemented at the 2018 AGM in preparation for the next cycle of Director elections in 2019

 

IMPLEMENTATION PLAN

AWI considers this recommendation to be problematic.

This requirement undermines the rights of the shareholder to assign their voting entitlement to any individual – including directors – on the basis of trust to the assignment of their vote in accordance with the proxy holders’ determination of the shareholders best interests.

If on the other hand the shareholder intended to vote their entitlement in a specific manner, they would assign a directed proxy.

The issue may be taken to shareholders at an EGM in early 2019.

This recommendation also relates to 1.12.1, 1.12.2

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

An extensive consultation process – run through AWI’s Woolgrower Industry Consultative Committee (ICC) – has allowed woolgrowers to identify, agree and ultimately support alternative methods of addressing the intent of the recommendation while protecting the democratic nature of the director election model and shareholder rights.

This recommendation has been completed and an agreement was reached with industry representatives that a more transparent reporting on proxy voting at general meetings would occur.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Critical

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
22 Nov 2018 16 Mar 2019 Complete
 
FINDINGS

AWI does not disclose the number of open proxies received by the Chair and how these votes are cast in respect to a resolution. Disclosure of this information is not required by law but does it does provide transparency of the will of shareholders.

 

RECOMMENDATIONS

Increase the transparency of the use of open proxies. The Chair should disclose at the beginning of the meeting the number of proxies they hold, how many are directed and undirected and of the undirected ones how he or she intends to vote. This practice should be implemented for the 2018 AGM.

 

IMPLEMENTATION PLAN

It is agreed for the Chair to announce on the floor of the meeting the number of open proxies held and their intention for how they will be voted.

This recommendation also relates to 1.12.1, 1.12.2.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

This recommendation was implemented at the 2018 AGM.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Critical

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Oct 2018 31 Jul 2019 Complete
 
FINDINGS

The current process for member selection of the Board Nomination Committee is inappropriate as the chair of the Board has a substantial influence over the membership of the Committee that then reviews potential candidates for director roles.

 

RECOMMENDATIONS

The Board Nomination Committee (BNC) should comprise:

• A Chair independent of the wool industry and independent from AWI, initially appointed by the Secretary of the Department of Agriculture and Water Resources. This individual should be an eminent person with experience in commerce or government but who has no commercial or family interests in the wool industry

• One Non-Executive Director of AWI, other than the Chair

• A person with significant experience in the wool industry [who should be nominated by the President of the National Farmers Federation]

• A senior executive from an international executive search firm, who should be nominated by the CEO of AWI, and subject to approval by the independent Chair

The intent of the BNC is to identify a pool of candidates that meet the requirements of the Board based on the Board skills assessment. For example, this would include the removal of any candidate who was assessed as not meeting sufficient requirements for the target skills sought by the Board. Potential candidates should be identified through a robust and transparent process including advertising for nominees. The BNC should also consider the independence of candidates in their review in alignment with updated independence criteria as per recommendation 1.9.10. The Board should have the opportunity to put forward candidates for the consideration of the BNC and will have the opportunity endorse the recommendations of the BNC prior to a Director election. The BNC should conduct an executive search function in addition to relying on nominations. The BNC should make a recommendation to shareholders which should be limited to the number of vacancies for Board positions. The Committee should be renewed prior to each election cycle and operate through consensus. The Chair of the Committee should have a casting vote to enable decisions to be made where the committee members are divided. Members should be remunerated according to applicable standards and parties responsible for nominating members of the BNC should consider diversity and other relevant standards for their appointees.The Chair of the BNC may decide to disclose the requisite skills gaps if they deem it suitable to do so. Open proxies should be used in alignment with recommendations of the BNC as per recommendation 1.12.1. The SFA and the Constitution should be updated to reflect these requirements as per recommendation 1.1.5. The recommendation does not intend for the BNC to remove the democratic rights of levy payers. This should be implemented by 31st October 2018 so that it is in operation for the next Director election cycle. Following the first election overseen by this model, the Independent Chair should work with AWI and Department to determine a long term model for an independent BNC without requiring a nominee from the Department.

 

IMPLEMENTATION PLAN

AWI has embraced the intent of the EY recommendation which addresses both the membership and functioning of the BNC to ensure improved practice.

AWI is sympathetic to the intent of the recommendation but have struggled with some elements which AWI believe have unintended consequences of diminishing the democratic rights of the current direct election model, which is a foundation principle of AWI.

BNC Membership: AWI supports the EY recommendation on membership but has proposed an additional member being an AWI director (not including the AWI Chair). This would retain EY’s requirement for the majority of BNC members to be independent of AWI, while ensuring a majority and avoid the situation of the Chair of the BNC having to have a casting vote. The BNC membership would be renewed prior to each election cycle and operate through consensus.

BNC Operations: AWI has proposed a BNC model to DAWR which would ensure a wider pool of candidates while also enabling the current direct election system, ensuring candidates who are supported by AWI shareholders have the opportunity to sit on the board of the company.

This would essentially result in a two-pronged approach for identifying candidates to be considered by the BNC. Firstly, the BNC would advertise to encourage a wider pool of candidates, who would not have to demonstrate shareholder support reflected by 100 shareholder signatures. This would allow candidates not known to shareholders to still be considered by the BNC. Secondly, those candidates who have secured the support of 100 shareholders.

The BNC would review all candidates in the same manner taking into account the board skills matrix, board diversity requirements, and succession planning, renewals and its charter and criteria, recommending a defined number of candidates, limited to the number of positions open for election.

To retain the open election process, all candidates who were able to obtain the 100 shareholder signatures would still be able to stand for election, regardless of whether or not they were recommended by the BNC. However, those candidates who do not have the support of 100 shareholders would only proceed to stand for election, if they were recommended by the BNC.

This model addresses both the intention of EY’s recommendation and remedies the unintended diminishing of AWI’s current direct election model.

Discussions with DAWR are ongoing and AWI expects these to be finalised well in advance of the proposed EGM in early 2019. The next SFA will be renegotiated in 2020 and AWI will review the relevant clauses to ensure it reflects the outcome of this recommendation.

AWI will revise the BNC Charter to address these issues and anticipates this will be finalized prior to the EGM in early 2019.

This recommendation and activity are interconnected with the recommendations relating to the skills-based board, the independence of director, the allocation of Directors proxies and requisite to obtain 100 shareholder signatures to stand for election.

This recommendation also relates to. 1.1.2, 1.1.5, 1.9.4, 1.9.5, 1.9.8, 1.9.10, 1.10.1, 1.10.3, 1.10.4, 1.10.5, 1.11.3 and 1.12.3.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

A revised charter for the Board Nomination Committee was approved by the AWI Board meeting in June. The revised charter has been placed on wool.com website. It remains forth the independent persons who will serve on the BNC in 2019 to be empanelled.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 31 Jul 2019 Complete
 
FINDINGS

The Board Nomination Committee selection process and Director elections are perceived by stakeholders to be ‘controlled’ by the current board.

 

RECOMMENDATIONS

Board members or AWI should not be allowed to campaign for Director nominees. They should, however, be able to note if the Board supports the assessment and recommendations made by the Board Nomination Committee.

This does not restrict the ability for the Board to communicate with shareholders. Members of the BNC should not nominate to be a Director of AWI until at least three years after their membership of the BNC ceases. Additionally, participation on a previous BNC should be included in the Director nomination materials shared with members. This is in line with behaviours of good governance and updates to the Board Nomination Committee Charter and Rules and Procedures Governing the Election of Directors should reflect this change. This update should be implemented by 31st January 2019.

 

IMPLEMENTATION PLAN

The Board’s position on this recommendation will be informed by the outcome of the EGM in early 2019.

This recommendation and activity are interconnected with the recommendations relating to the skills-based board, the independence of director, the allocation of Directors proxies and requisite to obtain 100 shareholder signatures to stand for election. This recommendation also relates to . 1.1.2, 1.1.3, 1.1.5, 1.9.4, 1.9.5, 1.9.8, 1.9.10, 1.10.1, 1.10.3, 1.10.4, 1.10.5, 1.11.3 and 1.12.3.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

An extensive consultation process – run through AWI’s Woolgrower Industry Consultative. The new Board Nomination Committee Charter was approved by the AWI Board meeting in June. The revised charter has been placed on wool.com website. The rules and procedures regarding the election of directors will be updated to reflect this recommendation if required.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
1 Jan 2020 DAWR to action Complete
 
FINDINGS

WoolPoll can be a costly process for the same outcome, where more stability may be more beneficial for both AWI and levy payers.

 

RECOMMENDATIONS

Conduct an independent assessment of the WoolPoll mechanism with an eminent person and involve levy payer and government input. Reduce the frequency from three years to five years, with a further step to be considered in the future that would remove the mandate to hold the WoolPoll at regular intervals, and instead, only conduct the poll if sufficient needs exist, as determined by levy payers. This change could promote stability in levy payer funds and also reduce costs, which could enable better investments of levy payer funds. This shift may also pave the way for more strategic conversations between the Board and the industry, increased focus on accountability of the Board to shareholders and thereby increase the level of shareholder engagement and participation. This should be implemented beyond 2019.

 

IMPLEMENTATION PLAN

AWI notes the DAWR has advised that this recommendation is for the government to respond to and action, and any changes to the WoolPoll mechanism are a decision for wool levy payers.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

The Department of Agriculture and Water Resources have advised AWI that they will assume responsibility for this recommendation, as it is within their role to review such regulatory instruments. As such there is no action required from AWI for this recommendation.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Governance Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jul 2019 1 Jan 2020 Complete
 
FINDINGS

Sources of, and use of funding, have emerged as issues that need to be addressed. A successful RDC would have access to stable sources of funding over the longer term in order to promote sustained investments in areas of greatest need.

 

RECOMMENDATIONS

The Department should consider how to enable AWI to access, utilise, and arrange sources of funding, and how this could be extended to include the ability to access private capital for relevant purposes, such as investment in agreed post-competitive platforms and technologies for commercialisation. A number of RDCs created separate accounts to provide transparency of management of investments and provide effective oversight. This should be implemented by 31st July 2019.

 

IMPLEMENTATION PLAN

AWI acknowledges this recommendation and will explore funding models that seek to deliver stable funding sources to enable sustained investments in areas of greatest need.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI will assess avenues for external funding as they arise.

Accounting for any such initiatives would be dealt with at the relevant time, along with structuring for any such investments.

 

IMPLEMENTATION PROGRESS (100%)

6 out of 6 recommendations completely implemented

 

 

THEME AWI POSITION CRITICALITY
People & Culture (2018) Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jul 2019 31 Jul 2019 Complete
 
FINDINGS

Based on a comparison with a selection of other organisations and standards, AWI’s redundancy benefits and policy appears to be appropriate for an organisation of its type

 

RECOMMENDATIONS

Develop an appropriate delegation of authority regarding ex-gratia payments. This should include a cap on the financial amount on which the CEO should consult with legal counsel prior to making an ex-gratia payment. This change should be made by 31st July 2019.

 

IMPLEMENTATION PLAN

AWI management has reviewed its redundancy policy which has addressed the provision of ex-gratia payments, providing clear guidelines and process to be followed.

It is expected this will be presented to the Board’s Remuneration and Appointments Committee (RAC) at the Board meeting in November 2018.

This recommendation also relates to 1.13.1 and 1.8.3.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

A revised AWI Group Redundancy Policy was approved by the AWI Board on 22 November 2018.

Specifically related to ex-gratia payments, the revised policy outlines appropriate delegation of authority regarding ex-gratia payments. It details roles and responsibilities, including the need to seek external legal counsel before any decision to make an ex-gratia payment is made and a cap on the amount that the CEO can approve in relation to an ex-gratia payment.

The revised policy also includes an increased level of Board approval required in relation to redundancies. The previous redundancy policy stipulated that the Board only needed to approve redundancies in relation to direct reports of the CEO. The updated policy now stipulates that the Board must approve any redundancy in relation to a direct report of the CEO or their direct reports (that is, one level further down).

The policy also includes guidelines for the engagement of employees who have previously been made redundant. For example, an employee made redundant cannot be engaged through a contract for at least six months after they leave AWI.

The policy is available for all employees to access on the AWI intranet, as with all other policies.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
People & Culture (2018) Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jul 2019 31 Jul 2019 Complete
 
FINDINGS

At an aggregate level, AWI’s executive remuneration is above the median when compared against matching positions in companies with an annual turnover between $20 and $100 million. Note this benchmarking was based on relevant domestic data and provides only an indication on the appropriateness of AWI executive level remuneration and does not consider matters such as specialised skills, roles and international staff.

 

RECOMMENDATIONS

Perform remuneration benchmarking against companies with (1) an annual turnover between $80 and $120 million or (2) employee headcount of 150-250 with a similar international reach on a regular basis (annually) so that it is consistent with AWI’s remuneration strategy. This update should be implemented by 31st July 2019.

 

IMPLEMENTATION PLAN

Reflecting the unique nature of the global AWI business, the position descriptions of the executive team and an outline of their respective roles and contribution to the strategic outcomes of AWI,

AWI has engaged Korn Ferry Hay Group to undertake an independent Executive Remuneration Benchmarking review.

This will be presented to the Board’s Remuneration and Appointments Committee (RAC) and Board upon completion which is anticipated in early 2019 or earlier.

This recommendation also relates to 1.9.7.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

Korn Ferry, a global organisational consulting firm, were engaged to benchmark AWI’s Executive Remuneration.

Their approach to remuneration benchmarking relies upon systematic sizing of roles to ensure that the internal and external comparisons made are valid and robust. The Hay Guide Chart and Profile Method of Job Evaluation was applied in this process as it is the most widely used system globally and has been used across diverse industries globally during the past 70 years.

The methodology used in job evaluation provides a clear overviewof the relative size of jobs and allows a trained evaluator to clearly explain the differences between jobs and what is required at different levels of work. It provides a robust link to the external remuneration market and sound comparisons with positions in other organisations, for benchmarking purposes.

Korn Ferry’s benchmarking was completed in the following three phases:

Phase 1 – Business Context and Job Analysis

Documentation including position descriptions, organisational charts, key performance indicators, business plans and associated budgets and, current organisational performance were reviewed and analysed to establish a clear picture of the senior (executive) roles and their work value.

This was followed by business context interviews conducted with the Chief Executive Officer and the Group Manager Human Resources to discuss the senior roles in more detail. These interviews provided Korn Ferry with an understanding of the AWI’s direction and the strategic objectives of the organisation, the management model, the accountabilities of the different roles, current challenges and how these challenges impact the delivery of each role’s specific accountabilities.

In addition to this, a business context interview was conducted with the Chairman of the Remuneration and Appointments Committee to discuss the Chief Executive Officer role.

Phase 2 – Job Evaluation

Using all the information that was collected in Phase 1, and their understanding of the variety of senior roles, Korn Ferry evaluated the roles using the Hay Guide Chart and Profile Method of Job Evaluation. This method is based on observations of the elements common to all roles as described in the supporting appendix. The evaluations are quality assured according to Korn Ferry’s protocols and standards.

Job evaluation provides a logical and defensible basis for the determination and management of internal relativities between roles and for the design of pay structures. However, because role evaluation is based on an analysis of the relevant facts , information collected in an evaluation exercise can also be used for several other purposes, such as organisational design, succession planning/management, training and continuous development.

Phase 3 – Remuneration Analysis and Report

Drawing on the work value outcomes, and the current incumbent remuneration data provided, Korn Ferry then prepared a report covering the Chief Executive Officer and Senior management roles. The report assesses how the current incumbents’ remuneration compares to external market levels.

The market data was extracted from Korn Ferry’s Remuneration database. This extensive database covers all major remuneration concepts (i.e. Base Salary, Fixed Annual Reward, Total Annual Reward etc.) for all levels of staff and provides a range of data using multiple “cuts” – for example, organisational level, national level or can drill down into more specific geographies, industries and job families (e.g. finance, information technology).

Korn Ferry’s database contains data from over 350,000 jobs in more than 470 of Australia’s leading organisations. One of the key features inherent within the remuneration database is that every position included has been sized using Korn Ferry’s methodologies, so the pay comparisons are robust and reliable.

The final remuneration benchmarking reports were provided to the Chairman of the Remuneration and Appointments Committee and this information was tabled at the AWI Board meeting in November 2018.

The Outcomes

The following Senior roles were included in the Korn Ferry remuneration benchmarking exercise:

Chief Executive Officer

Chief Financial Officer

General Manager Western Hemisphere

General Manager Eastern Hemisphere

General Manager Operations

General Manager Research

General Manager Legal Services

General Manager Processing Innovation & Education Extension

Group Manager Human Resources

General Manager Corporate Affairs and International Market Access

General Manager Marketing Communications

General Manager Digital

Company Secretary

Based on the job size of each role, market comparisons of the remuneration arrangements have been provided by Korn Ferry in their report.

The data contained in the report provided a reliable and robust source of information that will facilitate pay decisions that contribute to AWI’s ability to recruit, retain and motivate people of the calibre necessary to drive a high-performance business, whilst also managing remuneration costs within market parameters.

The overall findings from Korn Ferry’s report show AWI’s senior management remuneration is being managed close to the market median (50th percentile). AWI’s remuneration policy is to pay at the 50th percentile, across all roles globally. However, at an individual role level there is variability with a number of roles below the median.

AWI is unique in its structure and needs to compete for talent with the wider general market, covering skills and experience from a variety of sectors, including Agri and Consumer, as well as internationally. It is neither a typical not-for-profit, nor a typical public sector organisation.

Executives selling their skills in the wider market are often rewarded through packages that include incentives. Given the absence of short-term incentives (STIs) for the AWI executive cohort, it seems to be reasonable to adopt a positioning of the median rather than the lower quartile which is typically used for public sector and not-for-profit organisations.

Comparing the CEO to the market inclusive of STIs lowers his comparative ratio considerably, showing his salary to be less competitive.



Appendix I – Korn Ferry’s Job Evaluation Methodology

Concepts

The Hay Guide Chart-Profile Method for Job Evaluation is based on the concept of a universal approach to measurement and provides a common language, that enables jobs in different organisations, functions and countries to be consistently evaluated. It is the ability to consistently classify jobs on a common basis that enables the system to be effective in determining job relativities, both within and between organisations.

The initial development of the Guide Chart-Profile Method in the middle of last century was based on four important observations about the measurement of jobs:

1. While there are many factors one could consider as contributing to a job, the most significant can be grouped as:

a. The knowledge required to do a job

b. The kind of thinking needed to solve commonly faced problems

c. The responsibilities assigned to the position.

2. Jobs can be ranked not only in the order of importance within the structure of an organisation, but so that the distances between jobs can be determined.

3. The relative weighting of the factors appears in patterns that seem to be inherent to certain kinds of jobs.

4. The focus of the process of job classification must be on the nature and requirements of the position itself, rather than on the skills or background or characteristics or remuneration of the position holder.

What evolved was a three-factor structure (Know-How, Problem Solving and Accountability) with a total of eight sub-factors common to all jobs.

Know-How (Input)

• Practical/Technical Knowledge

• Planning, organising & integrating (managerial knowledge)

• Communicating & influencing skills

Problem Solving (Throughput)

• Freedom to think

• Thinking challenge

Accountability (Output)

• Freedom to act

• Nature of impact

• Magnitude (area of impact)

Know-How

Know-How is the knowledge, skill and experience required to fully meet the responsibilities of the position. It consists of three dimensions:

• The practical and technical knowledge and experience required, of techniques, procedures and/or professional and theoretical disciplines;

• The skills required to plan, organise and integrate the diverse and often conflicting requirements of managing and administering complex organisations; and

• The communicating and influencing skills required to work effectively with others and to motivate, develop and influence people.

Problem Solving

Problem Solving examines the way in which the Know How is applied on the job. It considers the complexity of problems faced in the job and the level of analytical, evaluative and creative thought required in the position. It consists of two dimensions:

• The degree to which thinking is constrained or limited by existing policies, procedures and principles; and

• The degree of complexity, variability and creativity involved in Problem Solving.

Accountability

Accountability is the scope given to the position holder to direct resources of all kinds and to influence or determine the course of events. It is the position holder’s answerability for the consequences of decisions made and actions taken. It consists of three dimensions:

• The degree to which there are constraints on the freedom to act of the position holder (for example by direction, policy or legal frameworks);

• The magnitude of the resources or activity areas on which the position most clearly has impact; and

• The degree to which the impact exercised by the position holder is direct or indirect, prime or supportive.

Evaluation Process

Each of the three evaluation factors is assessed using a Guide Chart which covers each of the applicable sub-factors. The Hay Guide Charts provide a consistent framework within which the level and relative weighting of the evaluation elements can be judged for each position. The importance of each of the evaluation factors must be determined in the context of the nature and structure of the organisation concerned.

Descriptions for varying levels of each of the evaluation sub-factors are incorporated into the Guide Charts which are designed as a grid. Selecting the most appropriate definition or descriptor for each sub-factor determines a position on the grid which, in turn, indicates a point score for that factor. The total evaluation score is determined by adding the points from each of the three Guide Charts.

Profile

In addition to the separate evaluation of each factor, a profile for each job is established. This describes the shape of the jobs in terms of the relationship between Problem Solving and Accountability and provides a check on the validity of the initial evaluation.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
People & Culture (2018) Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 15 Oct 2018 Complete
 
FINDINGS

AWI does not have a Chief Operating Officer or Chief of Staff. However, AWI has made a number of changes to the senior roles with the aim of achieving an equivalence in line with recommendations in the previous performance review. Examples of related changes include:

1. Undertook a number of retrenchments to return autonomy to regional offices for Marketing and product development

2. Appointment of a manager Operations and Office

3. Rationalising the number of people with a direct reporting line to the CEO.

The CEO currently has 18 direct reports.

 

RECOMMENDATIONS

Introduce the role of a Chief Operating Officer in line with the recommendation made in the previous performance review. This will allow the CEO to focus on more strategic activities. This should be implemented by 31st January 2019.

 

IMPLEMENTATION PLAN

AWI acknowledges this recommendation and has created the position of General Manager Operations to allow the CEO to focus on more strategic activities. An appointment has been made to this role effective Monday 15 October 2018. As a result, seven direct reports are now reporting into the GM Operations instead of the CEO.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

A General Manager Operations has been appointed and started the role on 15 October 2018 (see https://www.wool.com/about-awi/media-releases/awi-appoints-nigel-gosse-to-new-role-of-general-manager-operations/?category=0&year=0&month=0&page=1)

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
People & Culture (2018) Agree / Industry Agree Critical

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jul 2019 Ongoing Closed
 
FINDINGS

AWI has extensive documentation to support their operations and there are many recommendations to update this documentation as part of this Review. However to successfully implement the change a cultural shift is required. These changes are not just a change due to review but also in response to changes in good practice. As a result they need to implemented by reforming the AWI business, rather than just seeing these matters of procedure or simply adding cost.

 

RECOMMENDATIONS

Exhibit cultural change required to make these changes successful. AWI needs to exhibit behaviours of good governance including accountability, transparency, integrity and stewardship. This should start with leadership agreement to the change followed by staff education and training. Surveys can be used to monitor the cultural change. This should be demonstrated by 31st July 2019.

 

IMPLEMENTATION PLAN

AWI has recently conducted a global Employee Engagement survey. One of the key attributes measured in this survey is organisational culture. AWI commits to conducting Pulse surveys annually, as required, to measure, monitor and track employee engagement.

This recommendation also relates to 1.9.7.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI has reviewed and updated, where relevant, all of its existing policies and implemented many new ones to ensure continued good practice and good governance and is committed now, through Board Committee Charter Compliance Plans, to review these policies annually. The Company’s corporate values and The Woolgrower Test have been embedded in a number of these policies and have also been built into the company’s online performance review. The importance of these values and The Woolgrower Test is regularly communicated to all employees globally. The company launched its first employee engagement survey in September 2018 which measures several key result areas, including that of company culture, strategic alignment and leadership. Annual surveys will be conducted to measure improvement in these areas year on year. The Department of Agriculture, Fisheries and Forestry considers this recommendation closed.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
People & Culture (2018) Agree / Industry Agree Critical

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 31 Jan 2019 Complete
 
FINDINGS

There are 82 recommendations included in this Review. To effectively and successfully implement them and the cultural change required to support them, capability uplift of staff is required.

 

RECOMMENDATIONS

Identify skills gaps relating to areas of significant change. Consider whether these gaps can be addressed through internal training or hiring of new staff and fill these gaps by 31st January 2019.

 

IMPLEMENTATION PLAN

AWI acknowledges the importance of ensuring the business is supported with the appropriate resources to implement the 82 recommendations. The Board and CEO are committed to ensuring strong support and leadership across the business.

AWI plans to undertake a skills assessment across the company to identify key skills gaps. AWI HR will work closely with managers in the business, to identify appropriate measures to address these gaps and link to development plans and integrate into the annual performance review process.

This recommendation also relates to 1.14.5.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI has strengthened the process around the annual performance review, with skills gaps reviewed and addressed on an ongoing basis.

 

IMPLEMENTATION PROGRESS (100%)

16 out of 16 recommendations completely implemented

 

 

THEME AWI POSITION CRITICALITY
Monitoring Evaluation & Reporting Agree / Industry Agree Mandatory

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 30 Jun 2019 Complete
 
FINDINGS

AWI does not fully comply with section 30.2 of the SFA as its strategic plan does not include budget costs over the life of the plan.

 

RECOMMENDATIONS

Update the current Strategic Plan and ongoing Strategic Plans to include expected spending across the life of the plans. Review budget allocations with the ICC and publish these updates by 31st January 2019.

 

IMPLEMENTATION PLAN

In future financial periods, AWI will include a budget forecast for the full life of the organisation's Strategic Plan.

AWI intends to meet the requirements of this recommendation in line with AWI’s next strategic plan in June 2019.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI's budget for the next strategic period is published in AWI's new Strategic Plan 2019/20 – 2021/22.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Monitoring Evaluation & Reporting Agree / Industry Agree Mandatory

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 31 Mar 2019 Complete
 
FINDINGS

AWI does not comply with section 31.1 and 31.2 of the SFA as they did not update its evaluation framework within six months of the agreement date.

 

RECOMMENDATIONS

Review and update the evaluation framework by 31st January 2019. The framework should be developed in consultation with the Commonwealth and AWI should participate in any Commonwealth or collective RDC evaluation projects relevant to its operations.

 

IMPLEMENTATION PLAN

Prior to the commencement of the ROP, AWI was aware that improvement was required of its existing Monitoring and Evaluation Framework, including an executive with overall responsibility and appropriate resourcing.

AWI commenced a comprehensive review of its Measurement and Evaluation Framework in July 2018. An independent advisor was appointed via a Request For Proposal (RFP) to assist AWI in updating and improving the current M&E framework. AWI has used the EY report findings to inform this RFP. This includes identifying gaps in the current system and ways to improve how the organisation measures outcomes and communicates the results, measurable outcomes and information with its stakeholders.

AWI will ensure that as work on the M&E framework progresses, these will be embedded within the business to ensure consistency of reporting and integration within existing business processes.

A small executive team has been established to guide this work under the direction of the CFO with a number of workshops already being held with internal and external stakeholders, ensuring the new M&E Framework addresses not only the internal business needs of AWI, buts also those of external stakeholders.

Balancing the internal monitoring and reporting functions of the M&E Framework, with the development of meaningful and clear reporting to stakeholders remains a key focus of this work.

To support clearer communication and reporting to stakeholders, key program information on a digital platform will be published on the website following the relevant Board reviews. This reporting will focus on more quantitative information against all strategic targets and will also be published within AWI’s future annual reports.

To facilitate greater ease of M&E information at the program and whole-of-organisation level, AWI will explore and deploy an appropriate system or database platform to centralise the capture of data and reporting information.

AWI has identified a skill gap in this area and recruited a Data Analyst to assist in M&E across the business.

The CFO will present initial ideas to the executive strategic workshop in November before finalizing the model, with implementation expected in January 2019. With the new framework to be implemented across the business for use, scheduled to be in place by end of January 2019, ahead of AWI’s next strategic plan commencing 2019/20.

This recommendation also relates to 1.1.8, 1.1.9, 1.3.1-1.3.3, 1.3.5, 1.4.3-1.4.5, 1.6.1-3, 1.7.4 and 1.14.2.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

In September 2018, AWI appointed an external consultant, following a Request For Proposal (RFP) process, to assist with the review of its M&E framework.

The consultants are working with members of the AWI executive team to review current practices, processes and data to identify any gaps and areas for improvement.

On 30 January AWI convened a Strategic Planning workshop attended by representatives of 25 woolgrower groups and a representative from the Commonwealth. A key element of this workshop was to provide a briefing on the M&E framework and receive feedback from grower representatives.

The new M&E Framework was approved by the AWI Board in March and can be accessed at https://www.wool.com/about-awi/how-we-consult/measuring-performance/?id=5100

AWI are also currently collaborating with other RDCs through the Council of Rural RDCs on a cross-RDC impact assessment.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Monitoring Evaluation & Reporting Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jul 2019 31 Oct 2019 Complete
 
FINDINGS

Of the 97 strategic targets in AWI’s previous Strategic Plan 2013-14 to 2015-16, AWI has indicated that in its 2015-16 Annual Report that it is on track for its strategic targets, except for 17 Partly Achieved targets and 2 strategic targets with Minor Slippage. In the sample of strategic targets provided to EY by AWI, we noted that AWI’s progress reporting is generally consistent with the data they have provided.

 

RECOMMENDATIONS

Provide a progress update on all strategic targets, including those that were not considered to be achieved in line with previous Strategic Plans, in future Annual Reports. This should be based on AWI’s Monitoring and Evaluation framework to ensure that a systematic process is in place for assessing and tracking progress, while ensuring that greater transparency to the public is provided. This change should be implemented by 31st July 2019.

 

IMPLEMENTATION PLAN

Additional controls have been identified to ensure reporting to stakeholders via the annual report includes all strategic targets. Included in the review of the Measurement and Evaluation Framework, AWI will investigate opportunities to update the progress achieved against the strategic targets via additional communication channels, possibly similar to the ROP Implementation portal developed to report clearly to stakeholders of AWI’s progress in implementing the 2018 ROP recommendations.

This recommendation also relates to 1.3.1-1.3.3, 1.3.5 and 1.6.2.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

The targets in the current Strategic Plan have been evaluated, in accordance with the 2016-2019 M&E Framework, and have been reported on in the 2018/19 Annual Report.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Monitoring Evaluation & Reporting Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jul 2019 31 Oct 2019 Complete
 
FINDINGS

Some strategic targets have a large quantitative component (e.g. 'develop six new global partnerships for menswear and womenswear'). Although AWI has provided qualitative evidence to support its progress, it is difficult to make inferences whether AWI will be able to deliver within the specified timeframe.

 

RECOMMENDATIONS

Quantify progress to date, especially for strategic targets with a quantitative component, in future Annual Reports, to provide greater transparency. These strategic targets should be linked to benefits so that they are more meaningful to stakeholders. This change should be implemented by 31st July 2019

 

IMPLEMENTATION PLAN

AWI is currently reviewing its existing Measurement and Evaluation Framework to identify gaps in the current system and ways to improve how the organisation measures outcomes and communicates the results, measurable outcomes and information with its stakeholders in a meaningful manner.

This recommendation also relates to 1.1.8, 1.1.9, 1.3.1-1.3.3, 1.3.5, 1.4.3-1.4.5, 1.6.1-3, 1.7.4 and 1.14.2.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

The targets in the current Strategic Plan have been evaluated, in accordance with the 2016-2019 M&E Framework, and have been reported on in the 2018/19 Annual Report. In formulating the new M&E framework for the Strategic period 2019 onwards, consideration has been made to ongoing systematic tracking and reporting requirements to ensure greater transparency.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Monitoring Evaluation & Reporting Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jul 2019 31 Oct 2019 Complete
 
FINDINGS

For AWI’s current Annual Operating Plan 2017-18, 12 programs were identified where progress was not reported at the executive level in the latest Program Activity Report (PAR) dated December 2017:

1. An additional 3.5 million kgs in new demand by 2019

2. Grow the Alumni database by 60 new designers annually

3. Grow media awareness and editorial coverage by $10 million

4. Grow the retailer partner network by 3 new retailers from a base of 11

5. Additional 1.0 million kgs of new demand

6. Effective assistance to producer groups to establish the basis for sustainable long-term vertebrate pest control programs

7. Support for programs which enhance producers ability to efficiently and effectively control Rabbits in the long term Genetic Improvement

8. Broad range of Merino types included in the MLP project representative of industry usage

9. Assess and improve the understanding and application of data collected by sensor technology

10. Develop software to maximise benefits of sensor technology for farmers

11. Continue to provide strong and recognised support for over 50 wool industry events nationwide

12. Development of train-the-trainer programs for greater and more efficient execution

 

RECOMMENDATIONS

Ensure that status updates are provided for all strategic targets from the next quarterly PAR. This is especially important for new targets that were introduced in AWI’s 2017-18 Annual Operating Plan (AOP) as there is no baseline data available to determine progress to date. AWI should also ensure that evidence is provided for each target in their future Annual Reports. Progress reports should be available ahead of all future reviews of AWI’s Strategic Plans. This change should be implemented by 31stJuly 2019.

 

IMPLEMENTATION PLAN

This was raised in a Senior Management Meeting, ensuring all strategic targets are included in all PARs. This point will be re-emphasised at the Executive Strategic Planning workshop in November.

Additional controls have been identified to ensure reporting to stakeholders via the annual report is complete. Included in this review of the Measurement and Evaluation Framework, AWI will investigate opportunities to update the progress achieved against the strategic targets via additional communication channels, to report clearly to stakeholders.

This recommendation also relates to 1.1.8, 1.1.9, 1.3.1-1.3.3, 1.3.5, 1.4.3-1.4.5, 1.6.1-3, 1.7.4 and 1.14.2.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

The targets in the current Strategic Plan have been evaluated, in accordance with the 2016-2019 M&E Framework, and have been reported on in the 2018/19 Annual Report.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Monitoring Evaluation & Reporting Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jul 2019 31 Oct 2019 Complete
 
FINDINGS

The targets set out in the Strategic Plan vary in the degree to which they are clearly meaningful to key stakeholders, in that they do not all provide a clear connection to the impact an individual target will have to a woolgrower’s individual business.

 

RECOMMENDATIONS

Ensure that all strategic targets have a clear link between the target, the projects that will support achievement of the target and the impact to woolgrowers (e.g. how it will positively impact farm gate returns). This should be introduced from AWI's 2019-20 to 2021-22 Strategic Plan and should be linked to AWI’s Monitoring & Evaluation framework in order to facilitate a systematic process for assessing and tracking progress on each strategic target. This should be implemented by 31st July 2019.

 

IMPLEMENTATION PLAN

AWI will take measures in creating the next organisational Strategic Plan to incorporate clear measurable targets and ensure linkage to the impact to woolgrowers and reported in a meaningful manner. This work will be undertaken in conjunction with the work being carried out on the revised Measurement and Evaluation Framework.

This recommendation also relates to 1.1.8, 1.1.9, 1.3.1-1.3.3, 1.3.5, 1.4.3-1.4.5, 1.6.1-3, 1.7.4 and 1.14.2.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

In September 2018, AWI appointed an external consultant, following a Request For Proposal (RFP) process, to assist with the review of its M&E framework.

The consultants are working with members of the AWI executive team to review current practices, processes and data to identify any gaps and areas for improvement. The review will also look to determine standardised metrics and the reporting frequency.

On 30 January AWI convened a Strategic Planning workshop attended by representatives of 25 woolgrower groups and a representative from the Commonwealth. A key element of this workshop was to provide a briefing on the M&E framework and receive feedback from grower representatives.

The new M&E Framework was approved by the AWI Board in March and has been incorporated in AWI’s 2019/2020 – 2021/2022 Strategic Plan.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Monitoring Evaluation & Reporting Agree / Industry Agree Critical

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
30 Apr 2019 1 Jan 2020 Complete
 
FINDINGS

Despite a formal evaluation framework being in existence, benefits are not reviewed frequently enough to effectively communicate results of projects to industry stakeholders

 

RECOMMENDATIONS

Undertake a Post-Implementation Review at the completion of each project instead of at the end of Strategic Planning cycle. This should be implemented by 30th April 2019. This review should also include a calculation of the estimated and actual financial returns achieved on the investment using objectively assessable calculations.

 

IMPLEMENTATION PLAN

Prior to the commencement of the ROP, AWI was aware that improvement was required of its existing Monitoring and Evaluation Framework, including an executive with overall responsibility and appropriate resourcing.

AWI commenced a comprehensive review of its Measurement and Evaluation Framework in July 2018. An independent advisor was appointed via a RFP to assist AWI in updating and improving the current M&E framework. AWI has used the EY report findings to inform this RFP. This includes identifying gaps in the current system and ways to improve how the organisation measures outcomes and communicates the results, measurable outcomes and information with its stakeholders.

AWI will ensure that as work on the M&E framework progresses, these will be embedded within the business to ensure consistency of reporting and integration within existing business processes.

A small executive team has been established to guide this work under the direction of the CFO with a number of workshops already being held with internal and external stakeholders, ensuring the new M&E Framework addresses not only the internal business needs of AWI, buts also those of external stakeholders.

Balancing the internal monitoring and reporting functions of the M&E Framework, with the development of meaningful and clear reporting to stakeholders remains a key focus of this work. To support clearer communication and reporting to stakeholders, key information from AWI’s PARs (Program Achievement Reports) will be published on the website following the relevant Board reviews. This reporting will focus on more quantitative information against all strategic targets and will also be published within AWI’s annual reports.

To facilitate greater ease of M&E information at the program and whole-of-organisation level, AWI will explore and deploy an appropriate system or database platform to centralise the capture of data and reporting information.

AWI has identified a skill gap in this area and recruited a Data Analyst to assist in M&E across the business.

The CFO will present initial ideas to the executive strategic workshop in November before finalizing the model, with implementation expected in January 2019. With the new framework to be implemented across the business for use, scheduled to be in place by end of January 2019, ahead of AWI’s next strategic plan commencing 2019/20.

This recommendation also relates to 1.1.8, 1.1.9, 1.3.1-1.3.3, 1.3.5, 1.4.3-1.4.5, 1.6.1-3, 1.7.4 and 1.14.2.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

In September 2018, AWI appointed an external consultant, following a Request For Proposal (RFP) process, to assist with the review of its M&E framework.

The consultants are working with members of the AWI executive team to review current practices, processes and data to identify any gaps and areas for improvement.

On 30 January AWI convened a Strategic Planning workshop attended by representatives of 25 woolgrower groups and a representative from the Commonwealth. A key element of this workshop was to provide a briefing on the M&E framework and receive feedback from grower representatives.

The new M&E Framework was approved by the AWI Board in March and will be used to track, assess and report targets in AWI’s next strategic plan. The new Framework will be rolled out to the business over the next six months with the relevant systems updated to assist in supporting the ongoing reporting.

The targets in the current Strategic Plan are undergoing evaluation, in accordance with the existing M&E Framework, and will be reported on in the 2018/19 Annual Report. AWI's initial anticipated delivery date was 30 April 2019, however as the reporting requirement in this recommendation aligns with the publication of AWI’s annual report, the anticipated delivery date has been revised to 31 October 2019 when AWI’s Annual Report is published . For ongoing purposes, we anticipate including updates on M&E progress to WICP meetings.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Monitoring Evaluation & Reporting Agree / Industry Agree Critical

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jul 2019 31 Jul 2019 Complete
 
FINDINGS

There is no clear documented view of the total value of investment and returns delivered to each stakeholder group. This information would enhance the ability of AWI to provide transparency of expenditure. According to the Review’s independent woolgrower research, there are opportunities for AWI to increase transparency of benefits delivery:

• 47% noted that the effectiveness of AWI spending decisions is fairly evaluated

• 46% indicated that AWI is open and accountable about the investment decisions it makes

 

RECOMMENDATIONS

Identify key stakeholder groups, and subsequently develop a clear view of investment and return by these groups. Results should be published annually in the Annual Report. This should be implemented by 31st July 2019 for inclusion in the 2018-2019 Annual Report.

 

IMPLEMENTATION PLAN

As part of the review of the Measurement and Evaluation Framework, standardised metrics will be introduced where possible. AWI will explore and deploy an appropriate system or database platform to centralise the capture of data and reporting information. Responsibility for reporting on the total value of the investment and returns has been assigned to AWI's CFO.

Part of the discussions already undertaken by the small executive team (referred to in Rec 1.14.1) included how data will be captured and reported by stakeholder group. Given the number of woolgrower groups within the industry, reporting by each group may not prove as helpful. Consequently, the current discussions are to explore the opportunity to capture and report on a state or wool production system basis.

A small executive group has been established to guide this work under the direction of the CFO with a number of workshops already being held with internal and external stakeholders, ensuring the new M&E Framework addresses not only the internal business needs of AWI, but also those of external stakeholders.

This recommendation also relates to 1.4.5 and 1.6.2.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI has consulted with industry in developing a measurement and evaluation framework to enable transparent evaluation of the clear and measurable targets included in AWI's 2019-20 to 2021-22 Strategic Plan. The targets in the current Strategic Plan are undergoing evaluation, in accordance with the existing M&E Framework, and will be reported on in the 2018/19 Annual Report.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Monitoring Evaluation & Reporting Agree / Industry Agree Critical

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 1 Jan 2020 Complete
 
FINDINGS

Based on EY’s analysis of documentation received and interviews with AWI stakeholders, it appears that the majority of reporting is manually prepared, with limited ability to easily access or understand performance at an program or whole-of- organisation level. This limitation restricts the ability of AWI to make high quality decisions in a timely manner.

 

RECOMMENDATIONS

As part of the future Monitoring and Evaluation framework, AWI should include a range of standardised metrics that are tracked and monitored, supporting timely and quality decision making. This should be completed by 31st January 2019.

 

IMPLEMENTATION PLAN

In addition to the work outlined in associated recommendations for the M&E Framework, to facilitate greater ease of M&E information at the program and whole-of- organisation level, AWI will explore and deploy an appropriate system or database platform to centralise the capture of data and reporting information. Responsibility for reporting on the total value of the investment and returns has been assigned to AWI's CFO.

This recommendation also relates to 1.1.8, 1.1.9, 1.3.1-1.3.3, 1.3.5, 1.4.3-1.4.5, 1.6.1-3, 1.7. and 1.14.2.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

The new M&E Framework was approved by the AWI Board in March and is being used to track, assess and report targets in AWI’s next strategic plan. The new Framework is being rolled out to the business with the relevant systems updated to assist in supporting the ongoing reporting.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Monitoring Evaluation & Reporting Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 31 Mar 2019 Complete
 
FINDINGS

AWI’s current Monitoring and Evaluation framework appears to be out of date and no longer in use. Although AWI have advised that a new framework is being developed and implemented throughout the current strategic planning period, EY have not been able to objectively assess or review any work in progress documentation to verify this.

 

RECOMMENDATIONS

Update and publish the new Monitoring and Evaluation framework on AWI’s website by 31st January 2019 and in line with recommendation 1.1.9. Also regularly release results achieved throughout the Strategic Planning periods in order to keep stakeholders informed

 

IMPLEMENTATION PLAN

Prior to the commencement of the ROP, AWI was aware that improvement was required of its existing Monitoring and Evaluation Framework, including an executive with overall responsibility and appropriate resourcing.

AWI commenced a comprehensive review of its Measurement and Evaluation Framework in July 2018. An independent advisor was appointed via a RFP to assist AWI in updating and improving the current M&E framework. AWI has used the EY report findings to inform this RFP. This includes identifying gaps in the current system and ways to improve how the organisation measures outcomes and communicates the results, measurable outcomes and information with its stakeholders.

AWI will ensure that as work on the M&E framework progresses, these will be embedded within the business to ensure consistency of reporting and integration within existing business processes.

A small executive team has been established to guide this work under the direction of the CFO with a number of workshops already being held with internal and external stakeholders, ensuring the new M&E Framework addresses not only the internal business needs of AWI, buts also those of external stakeholders.

Balancing the internal monitoring and reporting functions of the M&E Framework, with the development of meaningful and clear reporting to stakeholders remains a key focus of this work.

To support clearer communication and reporting to stakeholders, key program information on a digital platform will be published on the website following the relevant Board reviews. This reporting will focus on more quantitative information against all strategic targets and will also be published within AWI’s future annual reports.

To facilitate greater ease of M&E information at the program and whole-of-organisation level, AWI will explore and deploy an appropriate system or database platform to centralise the capture of data and reporting information.

AWI has identified a skill gap in this area and recruited a Data Analyst to assist in M&E across the business.

The CFO will present initial ideas to the executive strategic workshop in November before finalizing the model, with implementation expected in January 2019. With the new framework to be implemented across the business for use, scheduled to be in place by end of January 2019, ahead of AWI’s next strategic plan commencing 2019/20.

This recommendation also relates to 1.1.8, 1.1.9, 1.3.1-1.3.3, 1.3.5, 1.4.3-1.4.5, 1.6.1-3, 1.7.4 and 1.14.2.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

In September 2018, AWI appointed an external consultant, following a Request For Proposal (RFP) process, to assist with the review of its M&E framework.

The consultants are working with members of the AWI executive team to review current practices, processes and data to identify any gaps and areas for improvement. The review will also look to determine standardised metrics and the reporting frequency.

On 30 January AWI convened a Strategic Planning workshop attended by representatives of 25 woolgrower groups and a representative from the Commonwealth. A key element of this workshop was to provide a briefing on the M&E framework and receive feedback from grower representatives.

The new M&E Framework was approved by the AWI Board in March and can be accessed at https://www.wool.com/about-awi/how-we-consult/measuring-performance/?id=5100 The new Framework will be used to track, assess and report targets in AWI’s next strategic plan.

The targets in the current Strategic Plan are undergoing evaluation, in accordance with the existing M&E Framework, and will be reported on in the 2018/19 Annual Report.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Monitoring Evaluation & Reporting Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jul 2019 31 Oct 2019 Complete
 
FINDINGS

Although monitoring and evaluation is a core capability for R&D organisations, no one in AWI is specifically appointed to own this framework. Further, there is no clear documented view of the total value of investment and returns delivered to each stakeholder group. This information would enhance the ability of AWI to provide transparency of expenditure. There is an opportunity for AWI to increase organisational transparency, particularly relating to benefit delivery. According to independent woolgrower research, of woolgrowers interviewed:

• 29% need more information as to where the funds are being invested

• 22% believe they are investing in the wrong areas

 

RECOMMENDATIONS

Develop by 31st July 2019:

• Report on the value of investment and returns by stakeholder group in their Annual Report each year. This should be included in the 2018-2019 Annual Report

• Appoint individuals within AWI to be accountable for understanding monitoring and evaluation of investment activities, and propagate this understanding in AWI and ensure that the M&E framework is effectively implemented

• Educate employees such that there is a consistent understanding of their obligations relating to monitoring and evaluation of investment activities across AWI

 

IMPLEMENTATION PLAN

In addition to the work outlined in associated recommendations for the M&E Framework, to facilitate greater ease of M&E information at the program and whole-of-organisation level, AWI will explore and deploy an appropriate system or database platform to centralise the capture of data and reporting information. Responsibility for reporting on the total value of the investment and returns has been assigned to AWI's CFO.

To support AWI meeting these enhanced M&E activities, AWI will provide training to staff and additional resources as required.

This recommendation also relates to 1.1.8, 1.1.9, 1.3.1-1.3.3, 1.3.5, 1.4.2-1.4.5, 1.6.1-3, 1.7.4 and 1.14.2.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI has consulted with industry in developing a measurement and evaluation framework to enable transparent evaluation of the clear and measurable targets included in AWI's 2019-20 to 2021-22 Strategic Plan.

The targets in the current Strategic Plan have been evaluated, in accordance with the 2016-2019 M&E Framework, and have been reported on in the 2018/19 Annual Report.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Monitoring Evaluation & Reporting Agree / Industry Agree Critical

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 31 Jul 2019 Complete
 
FINDINGS

The Monitoring and Evaluation framework does not provide guidance on standardised metrics for projects and programs. As a result, this Review was not able to compare projects within the project portfolio and identify AWI’s effectiveness in tracking and reporting on progress. This also limits AWI’s ability to have a clear view of the returns being achieved on investments. In many cases, a high frequency is warranted in order to enable better reporting and assessment of AWI performance management and decision making. AWI has advised that a new Monitoring and Evaluation framework is current being developed.

 

RECOMMENDATIONS

Where possible, introduce standardised, quantitative performance metrics as part of the Monitoring & Evaluation framework to enable comparison across AWI's project portfolio and transparency regarding benefits delivered to woolgrowers. These metrics should be monitored and assessed against progress on a regular basis under AWI’s new M&E framework to allow for systematic tracking of AWI’s progress. This should occur by 31st January 2019.

 

IMPLEMENTATION PLAN

As part of the review of the Measurement and Evaluation Framework, standardised metrics will be introduced where possible. To facilitate greater ease of M&E information at the program and whole-of-organisation level, AWI will explore and deploy an appropriate system or database platform to centralise the capture of data and reporting information.

This recommendation also relates to 1.1.8, 1.1.9, 1.3.1-1.3.3, 1.3.5, 1.4.3-1.4.5, 1.6.1-3, 1.7.4 and 1.14.2.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI has consulted with industry in developing a measurement and evaluation framework to enable transparent evaluation of the clear and measurable targets included in AWI's 2019-20 to 2021-22 Strategic Plan. The targets in the current Strategic Plan are undergoing evaluation, in accordance with the existing M&E Framework, and will be reported on in the 2018/19 Annual Report.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Monitoring Evaluation & Reporting Agree / Industry Agree Critical

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
30 Apr 2019 31 Dec 2019 Complete
 
FINDINGS

Analysis of return on investment is only completed at the end of the strategic period.

 

RECOMMENDATIONS

Calculate woolgrower related performance metrics on an annual basis and measure actual performance against estimated performance. This will provide insights to stakeholders on how the investments are performing against targets and enable AWI to reallocate funding and resources if necessary to maintain desired risk levels. This should occur by 30th April 2019.

 

IMPLEMENTATION PLAN

AWI currently reports progress against targets on an exception basis. From the 2018/19 Annual Report more detailed performance metrics against the strategic targets will be included.

This recommendation also relates to 1.1.8, 1.1.9, 1.3.1-1.3.3, 1.3.5, 1.4.3-1.4.5, 1.6.1-3, 1.7.4 and 1.14.2.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI has consulted with industry in developing a measurement and evaluation framework to enable transparent evaluation of the clear and measurable targets included in AWI's 2019-20 to 2021-22 Strategic Plan.

The targets in the current Strategic Plan have been evaluated, in accordance with the 2016-2019 M&E Framework, and have been reported on in the 2018/19 Annual Report.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Monitoring Evaluation & Reporting Agree / Industry Agree Critical

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 31 Oct 2019 Complete
 
FINDINGS

The Monitoring and Evaluation framework does not have an explicit owner. As such, there are opportunities to encourage greater ownership of the framework within AWI to ensure that the framework is applied consistently. AWI has advised that a new Monitoring and Evaluation framework is currently being developed. AWI should provide greater transparency on ROI, BCR, detailed assumptions for the analyses conducted, and the economic effects on stakeholders other than woolgrowers. Other RDCs seem to be further progressed than AWI in this respect.

 

RECOMMENDATIONS

Develop by 31st January 2019:

• Introduce explicit requirements for achieving a minimum confidence level (e.g. 95%) in evaluations of projects

• Establish governance of the M&E framework and link the implementation of this framework to Executive performance to motivate greater ownership and responsibility amongst AWI Executives

• Disclose methodology for evaluation of investment portfolios, assumptions for the analyses, and benefits on stakeholders on AWI's website to provide greater transparency

 

IMPLEMENTATION PLAN

Responsibility for reporting on the total value of the investment and returns has been assigned to AWI's CFO. An internal Measurement and Evaluation Advisory Group has been established to ensure consistent application and transparency across the organisation.

This recommendation also relates to 1.1.8, 1.1.9, 1.3.1-1.3.3, 1.3.5, 1.4.3-1.4.5, 1.6.1-3, 1.7.4, 1.9.7 and 1.14.2.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI has consulted with industry in developing a measurement and evaluation framework to enable transparent evaluation of the clear and measurable targets included in AWI's 2019-20 to 2021-22 Strategic Plan. The targets in the current Strategic Plan are undergoing evaluation, in accordance with the existing M&E Framework, have been reported on in the 2018/19 Annual Report. The annual review of performance metrics for AWI's Executive have been updated to link AWI's M&E framework to Executive performance.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Monitoring Evaluation & Reporting Agree / Industry Agree Critical

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 1 Jan 2020 Complete
 
FINDINGS

Measurement and evaluation data collection is primarily done manually and is not easily accessible to support cross-collaboration decision making.

 

RECOMMENDATIONS

Establish a repository to better capture research data and create knowledge for AWI and cross-RDC collaborations through sharing of research outcomes. This would ensure that AWI is not replicating research, and enable output of research to be accessible by other RDCs. This should be implemented by 31st January 2019.

 

IMPLEMENTATION PLAN

As part of the review of the Measurement and Evaluation Framework. To facilitate greater ease of M&E information at the program and whole-of-organisation level, AWI will explore and deploy an appropriate system or database platform to centralise the capture of data and reporting information.

This recommendation also relates to 1.1.8, 1.1.9, 1.3.1-1.3.3, 1.3.5, 1.4.3-1.4.5, 1.6.1-3, 1.7.4 and 1.14.2.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

The new M&E Framework was approved by the AWI Board in March and is being used to track, assess and report targets in AWI’s next strategic plan. The new Framework is being rolled out to the business with the relevant systems updated to assist in supporting the ongoing reporting.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Monitoring Evaluation & Reporting Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 30 Jun 2019 Complete
 
FINDINGS

There have been stakeholder concerns relating to investments being made in areas where there is no market failure (e.g. WoolQ). Clause 26.2 from the SFA refers to AWI being able to apply levy funds to

‘Other Activities’ related to the industry. This is defined as ‘activities of AWI (other than Marketing Activities and Research and Development Activities) that are supported by levy payers and shareholders that relate to a function for which there is market failure’.

 

RECOMMENDATIONS

Provide greater levels of evidence and transparency that investments are being pursued pre-competitive areas (e.g. where investment would not have occurred by manufacturers). This should be included in both Annual Reports or relevant communication to industry stakeholders, such as through the renewed ICC. This should be implemented by 31st January 2019.

 

IMPLEMENTATION PLAN

AWI is developing new investment protocols which require detailed explanation and rationale for any investments that fall into ‘other activities’ including pre-competitive areas. In cases where AWI invests in these areas, AWI will provide an explanatory note in its annual reports going forward.

This recommendation also relates to 1.1.8, 1.1.9, 1.3.1-1.3.3, 1.3.5, 1.4.3-1.4.5, 1.6.1-3, 1.7.4 and 1.14.2.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI has created investment protocol guidelines that outline the considerations for investment of AWI funds. This includes definitions of what constitutes market failure and public good considerations. The investment protocols also outline the considerations for identifying collaboration opportunities and IP requirements. This policy has been made available for all employees to access on the AWI intranet, as with all other policies.

 

IMPLEMENTATION PROGRESS (100%)

4 out of 4 recommendations completely implemented

 

 

THEME AWI POSITION CRITICALITY
ROP recommendations & implementation Agree / Industry Agree Mandatory

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 31 Jul 2019 Complete
 
FINDINGS

Three recommendations are incomplete within the timeframe specified in AWI’s Response & Implementation Plan. First, AWI has not addressed Conflicts of Interest in its Corporate Governance Policy (Recommendation 4). Second, although AWI has a Board Nomination Committee to assess candidate nomination, there is no evidence of a formal succession planning process in place to identify skill gaps for AWI’s Board in the future (Recommendation 5). Third, the M&E framework is not sufficient to ensure that the process for measurement and evaluation is sustainably embedded into AWI (Recommendation 8). AWI has advised that it is considering mechanisms to inform Government on the progress against the 2015 Response & Implementation Plan.

 

RECOMMENDATIONS

Implement each of the uncompleted recommendations from the 2012-15 performance review by 31st January 2019:

• Conflicts of Interest in its Corporate Governance Policy (Similar to recommendation 1.9.6 in this Review)

• Formal succession planning process in place to identify skill gaps for AWI’s Board in the future (Similar to recommendation 1.1.3 in this Review)

• The M&E framework (Similar to recommendation 1.1.9 in this Review)

Each of these have been made as other recommendations as part of this Review.

 

IMPLEMENTATION PLAN

AWI notes the three recommendations and is progressing with actions to ensure their completion.

While AWI discusses progress on ROP Implementation Plans during formal and informal discussions including the six-monthly SFA meetings. This has included discussions on changes to the initial implementation plan for various recommendations where plans have changed.

To allow greater transparency AWI has developed the ROP Implementation Portal (rop.wool.com) to provide real time progress of all recommendations.

This recommendation also relates to 1.1.3, 1.1.9, 1.9.6 and 1.14.7.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI has consulted with industry in developing a measurement and evaluation framework to enable transparent evaluation of the clear and measurable targets included in AWI's 2019-20 to 2021-22 Strategic Plan. Revisions to the Code of Conduct, inclusive of provisions in relations to conflict of interest, and business ethics have been finalised and approved at AWI's June board meeting.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
ROP recommendations & implementation Agree / Industry Agree Critical

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Oct 2018 31 Jan 2019 Complete
 
FINDINGS

Of the 8 recommendations in the 2012-15 performance review, one recommendation is complete. Specifically, AWI has incorporated communication of strategic benefits in its strategic plan and other engagement channels (Recommendation 2)

 

RECOMMENDATIONS

In AWI’s next future Response & Implementation Plan, specify and report the underlying activities that are required to address each recommendation outlined in this Review. AWI should allocate accountability and responsibility to individuals, and link implementation progress of the Plan to Board performance evaluation in order to encourage individuals to take ownership by 31st October 2018.

 

IMPLEMENTATION PLAN

AWI acknowledges this recommendation and has implemented a Review of Performance Implementation Portal (ROPIP) to report in real time on its progress implementing the 82 recommendations included in the independent review of performance report.

The ROPIP was launched on 10 September 2018 and at that time contained only the EY findings and recommendations. Once AWI finalizes the implementation plan and incorporates feedback from the government, details of the activities underlying each recommendation will be published. Further as progress unfolds against each recommendation, AWI will be publishing weekly updates on actions taken to allow real-time reporting for stakeholders.

This recommendation also relates to 1.8.1, 1.9.9 and 1.14.7.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI has made alternative arrangements in relation to some of the 8 recommendations in the 2015 Performance Review. These are considered complete.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
ROP recommendations & implementation Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 30 Nov 2020 Complete
 
FINDINGS

Adjustments were made to five of the recommendations, such that AWI has made alternative arrangements to the development of a strategic benefit framework, Board skill matrix, the hiring of a COO / CoE, and the Deed of Delegation (Recommendations 1, 3, 6, and 7). AWI has advised that post 2015 ROP period the Department streamlined its SFA meetings with the RDC’s, to ensure consistency and appropriate monitoring and reporting against the SFA requirements. This included the requirement for AWI to report against its implementation and progress implementation to then previous ROP. In 2017 in discussion with the Department, AWI reported a change in its implementation plan.

 

RECOMMENDATIONS

Set out measureable and objective targets that can be tracked over time, and communicate justifications for the adjustments of recommendations in this Review with both the Department and levy payers. AWI should communicate and agree the adjustments with the Department by 31st January 2019. Communication mechanisms may include reporting justifications in AWI’s future Annual reports and to the ICC and the Department.

 

IMPLEMENTATION PLAN

While AWI discusses progress on ROP Implementation Plans during formal and informal discussions including the six-monthly SFA meetings. This has included discussions on changes to the initial implementation plan for various recommendations where plans have changed.

To allow greater transparency AWI has developed the ROP Implementation Portal (rop.wool.com) to provide real time progress of all recommendations from the 2018 ROP.

AWI has developed a Deed of Delegation for the CEO which has been approved by the AWI Board at the October 2018 Board meeting.

This recommendation also relates to 1.8.1 and 1.14.7.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

The new M&E Framework was approved by the AWI Board in March and will be used to track, assess and report targets in AWI’s next strategic plan. Since the report has been finalised, AWI has compiled a Board skills matrix, which was included in the organisation's Annual Reports. A General Manager - Operations has been appointed and started the role in October 2018 (see https://www.wool.com/about-awi/media-releases/awi-appoints-nigel-gosse-to-new-role-of-general-manager-operations/?category=0&year=0&month=0&page=1) The Board approved and executed the CEO Deed of Delegation at the October Board meeting. This ROP Implementation Portal (ROPIP) has been developed to provide greater transparency on the progress of recommendations for the 2018 Review of Performance. AWI has incorporated its detailed implementation plan and incorporated feedback from DAWR and ICC members into the ROPIP, to make it easier for AWI to communicate its implementation and report back on its progress to stakeholders.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
ROP recommendations & implementation Agree / Industry Agree Critical

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Oct 2018 1 Nov 2019 Complete
 
FINDINGS

Ongoing dialogue should be maintained between the Department and AWI. This would provide significant value and support to the transformation outlined in the Review by providing clarification of the intent of the report, open dialogue on the timing of implementation and monitoring and management of risks.

 

RECOMMENDATIONS

Establish a governance forum for the purposes of the monitoring the implementation of these recommendations. This should include representation from AWI, the Department and industry. Any deviation from the recommendations made in this report should be approved through this forum. This should be established by 31st October 2018.

 

IMPLEMENTATION PLAN

Throughout the review DAWR convened a weekly monitoring group to monitor progress of the review and enable timely action to be taken as required.

At AWI six-monthly SFA meeting with DAWR on 27 August 2018 it was agreed that AWI and DAWR should continue to meet fortnightly to discuss this ongoing progress with the implementation plan for the foreseeable future. AWI agrees that the implementation of the recommendations outlined in this plan must be timely and transparent and involve key stakeholders throughout the process.

To assist all stakeholders monitor AWI’s progress on implementing the recommendations in the 2018 ROP, AWI has developed the Review of Performance Implementation Portal (ROPIP), which can be found at rop.wool.com This portal provides the implementation plan, but more importantly provides weekly updates on progress against each recommendation. An indication of total implementation is provided against all recommendations, in addition to individual recommendations.

This recommendation also relates to 1.8.1 and 1.8.2.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI and the Department of Agriculture have agreed to now meet monthly to discuss and report on progress of AWI's implementation against the ROP recommendations.

During the six-month period AWI have convened a number of workshops and ICC meetings with woolgrower representative groups and production groups to request invaluable feedback to the development of AWI’s new consultation model. AWI’s intention was to strike a balanced position, meeting the expectations of woolgrowers, woolgrower representative groups, government and AWI’s business needs.

From this feedback AWI created a two-tiered consultation model, which has a clearly defined purpose to include more groups and bring feedback from the varied regional and organisational perspectives.

The two key consultation forums are a core group of the AWI Woolgrower Industry Consultation Panel (WICP) and a broader group of the AWI Woolgrower Consultation Group (WCG).

 

IMPLEMENTATION PROGRESS (100%)

5 out of 5 recommendations completely implemented

 

THEME AWI POSITION CRITICALITY
Consultation Agree / Industry Agree Critical
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
30 Apr 2019 30 Jun 2019 Complete
 
FINDINGS

The Review notes AWI are compliant with clause 15.1 however the SFA is broad and not specific

• 56% of sampled woolgrowers indicated that AWI communicates well with levy payers about what’s happening

• 43% said that AWI gives me opportunities to have my say about what they do

• 37% indicated that AWI listens to woolgrowers before making its decisions measures are provided.

The review has identified a number of significant opportunities to improve engagement and consultation processes which are outlined in the engagement evaluation in Section 7.5. Submissions received by the Review and our independent woolgrower research indicated that there are opportunities for AWI to develop more effective, respectful and meaningful engagements.

 

RECOMMENDATIONS

Strengthen engagement in line with recommendations and timeframes recommended in Annexure 1.5 Engagement assessment. These include:

• 1.5.1 stakeholder engagement plan with measurements of performance

• 1.5.2 review and update of the ICC to better incorporate the interests of stakeholders and levy payers

This change should be implemented by 30th April 2019.

 

IMPLEMENTATION PLAN

This recommendation highlights that while AWI is compliant with its SFA requirements, it can do more to improve communications and engagement with its levy payers.

In working towards an improved consultation model, including the ICC, AWI has reviewed comments relating to consultation in submissions made by stakeholders to the ROP, in addition to suggestions put forward in recent times particularly by woolgrower representative groups.

AWI has conducted an initial workshop with 20 woolgrower representative groups on 9 October 2018 to further explore ways to improve the model and understand their expectations and needs.

Based on the key principles arising from this workshop and subsequent discussions with the current ICC, AWI will work with these stakeholders to develop a new consultation to ensure it meets industry standards and expectations, whilst also meeting the business needs of AWI.

A key element of this new model will be formalised processes across the business to capture outcomes from consultation with woolgrowers, and a feedback mechanism showing how this information has been used within the business.

AWI’s consultation model encompasses not only the ICC but also other engagement and communication activities undertaken within AWI, and looking at how improved functioning of these and awareness of these by woolgrowers can be achieved.

Appropriate and meaningful metrics will be developed to allow greater transparency of actions taken and the value delivered to woolgrowers and AWI.

This will be discussed by AWI’s management at its strategic planning workshop in November, discussed further with woolgrower representative groups and the AWI, before being finalised and implemented by April 2019.

This recommendation also relates to recommendations 1.5.2, 1.2.1 and 1.5.1.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI has been proactively consulting with woolgrowers and woolgrower representative groups as part of the development of a new ICC model.

AWI convened a workshop of 20 woolgrower representatives and the government on 9 October 2018 to discuss opportunities for improving AWI's consultation model.

AWI convened a special meeting of the ICC on 20 December to consult on AWI's progress on implementing the Review of Performance.

On 30 January AWI convened a Strategic Planning workshop attended by representatives of 25 woolgrower groups and a representative from the Commonwealth. The primary purpose of this workshop was to improve AWI's consultation efforts, while the specific focus on planning for AWI's next strategic plan 2019-2021, discussion and clarity on AWI's role and purpose was addressed.

This feedback has been invaluable to the development of our new consultation model, which strikes a balanced position, meeting the expectations of woolgrowers, woolgrower representative groups, government and AWI’s business needs.

The new ICC model has been developed alongside AWI’s new Strategic Plan for 2019/20 – 2021/22. AWI’s new Strategic Plan highlights Consultation as a new strategic priority area for AWI.

In developing the new model, the objective was to create a consultation model with a clearly defined purpose. We sought to ensure the model was inclusive of more groups, to bring feedback from the varied regional and organisational perspectives, while ensuring there was a core group that AWI could engage more regularly on more specific issues.

As such, the new model has two key consultation forums: a core group of the AWI Woolgrower Industry Consultation Panel (WICP) and a broader group of the AWI Woolgrower Consultation Group (WCG).

The new model was endorsed by AWI’s ICC at its last meeting on 5th June. Details of the new model are available at www.wool.com/consultation

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Consultation Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
30 Apr 2019 30 Jun 2019 Complete
 
FINDINGS

Independent woolgrower research indicated that ROI transparency is a key area of improvement for AWI:

• 44% of sampled woolgrowers are concerned about the effectiveness of AWI investment of funds

• Of this, 30% indicated that investments should be reaping better returns, 29% asked for greater transparency on where the funds are being invested

 

RECOMMENDATIONS

Develop by 30th April 2019:

• A ‘purpose statement’ that clearly outline AWI’s role in the industry moving forward as part of an industry-wide, longer term strategy. These should be developed through stakeholder consultations and focus on pre-competitive services

• A consultation framework outlining how feedback from stakeholder groups will be sought and addressed in AWI’s future investment decisions, in line with Annexure 1.5 Engagement assessment

• A collaboration plan with RDCs in cases where AWI and other RDCs can play to each other’s strengths and expertise in their respective industry, in line with Annexure 1.7 Collaboration assessment. This provides an opportunity to seek collaboration with MLA on a sheep production strategy

 

IMPLEMENTATION PLAN

Since 2009, AWI has made efforts to clearly explain its role as “the research, development and marketing organisation for the Australian wool industry.” AWI’s mission and vision have also remained focused during this time: “to enhance the profitability, international competitiveness and sustainability of the Australian wool industry; and increase demand and market access for Australian wool.”

As AWI moves into its new strategic period 2019-21, AWI will review its purpose within the planning period for AWI’s next strategic plan 2019-2021.

This process will include consultation of an industry 10-year plan, the M&E framework and RDC collaboration model among other things.

AWI is committed to improving its consultation processes and enabling all woolgrowers the opportunity to provide feedback on the organisation's activities and operations.

In working towards an improved consultation mode, including the ICC, AWI has reviewed comments relating to consultation in submissions made by stakeholders to the ROP, in addition to suggestions put forward in recent times particularly by woolgrower representative groups.

AWI has conducted an initial workshop with 20 woolgrower representative groups on 9 October 2018 to further explore ways to improve the model and understand their expectations and needs.

Based on the key principles arising from this workshop and subsequent discussions with the current ICC, AWI will work with these stakeholders to develop a new consultation to ensure it meets industry standards and expectations, whilst also meeting the business needs of AWI.

A key element of this new model will be formalised processes across the business to capture outcomes from consultation with woolgrowers, and a feedback mechanism showing how this information has been used within the business.

AWI’s consultation model encompasses not only the ICC, but also other engagement and communication activities undertaken within AWI and looking at how improved functioning of these and awareness of these by woolgrowers can be achieved.

Appropriate and meaningful metrics will be developed to allow greater transparency of actions taken and the value delivered to woolgrowers and AWI.

This will be discussed by AWI’s management at its strategic workshop in November before being finalised and implemented by April 2019.

The issue relating to RDC collaboration is addressed in recommendations 1.7.1, 1.7.2 and 1.7.3.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI has been proactively consulting with woolgrowers and woolgrower representative groups as part of the development of a new ICC model.

AWI convened a workshop of 20 woolgrower representatives and the government on 9 October 2018 to discuss opportunities for improving AWI's consultation model.

AWI convened a special meeting of the ICC on 20 December to consult on AWI's progress on implementing the Review of Performance.

On 30 January AWI convened a Strategic Planning workshop attended by representatives of 25 woolgrower groups and a representative from the Commonwealth. The primary purpose of this workshop was to improve AWI's consultation efforts, while the specific focus on planning for AWI's next strategic plan 2019-2021, discussion and clarity on AWI's role and purpose was addressed.

This feedback has been invaluable to the development of our new consultation model, which strikes a balanced position, meeting the expectations of woolgrowers, woolgrower representative groups, government and AWI’s business needs.

The new ICC model has been developed alongside AWI’s new Strategic Plan for 2019/20 – 2021/22. AWI’s new Strategic Plan highlights Consultation as a new strategic priority area for AWI.

In developing the new model, the objective was to create a consultation model with a clearly defined purpose. We sought to ensure the model was inclusive of more groups, to bring feedback from the varied regional and organisational perspectives, while ensuring there was a core group that AWI could engage more regularly on more specific issues.

As such, the new model has two key consultation forums: a core group of the AWI Woolgrower Industry Consultation Panel (WICP) and a broader group of the AWI Woolgrower Consultation Group (WCG).

The new model was endorsed by AWI’s ICC at its last meeting on 5th June. Details of the new model are available at www.wool.com/consultation

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Consultation Agree / Industry Agree Recommended

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jul 2019 1 Jan 2020 Complete
 
FINDINGS

AWI’s current strategic plan does not provide a strategic long- term vision. The wool industry has not adopted a long term view, which is different to RDCs in other industries (e.g., in addition to Dairy Australia’s own strategic plan, there is a 5- year industry plan in place (Dairy Moving Forward)).

 

RECOMMENDATIONS

Develop a ten-year wool strategy to inform AWI’s three year Strategic Plans. This will need to be developed with broad consultation across the industry, including levy payers and other RDCs. This will enable AWI to identify major long term opportunities (e.g. sustainability, provenance, productivity improvement, partnerships and risks). AWI must also address how to mitigate industry risks, such as conducting a strategic risk assessment and allocating funds accordingly (e.g. for flystrike prevention research). This plan should reviewed regularly (e.g. every 3-5 years). This may result in a shift to fewer and higher impact projects and a need to move into the pre-competitive space and tackle bigger and higher return opportunities in a more sustained manner. This should be implemented by 31st July 2019.

 

IMPLEMENTATION PLAN

AWI operates on a three-year strategic planning cycle to align with WoolPoll timing and until 2016, the Statutory Funding Agreement.

As part of AWI’s new consultation model, AWI intends to convene a national strategic planning workshop, bringing together industry stakeholders in early 2019 to specifically consult on AWI’s next strategic plan 2019-2021. As part of this forum AWI intends to seek input for the proposed 10-year industry strategy. It is envisaged that the newly formed ICC would play a key role in the consultation and development of an industry strategy.

While acknowledging the merit of this recommendation, AWI does note that at the request of the Australian Government, the Australian wool industry developed the National Wool Research, Development and Extension (RD&E) Strategy. The Strategy defines the priority objectives for the wool industry in the long-term, based on a national collaborative approach to all wool research, development and extension. This strategy informs AWI’s investments.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

In early 2020 external consultants were commissioned to work with the wool industry in developing a 10-year wool strategy. Throughout 2020 the Woolgrower Consultation Group (WCG) met for a series of webinars to discuss key industry issues and to determine the pillars for an industry strategic plan. AWI provided secretariate and financial support to help develop the plan. In November 2020 the wool industry finalised Wool 2030 with a copy of the plan being sent to the Minister for Agriculture. The WCG has established a sub-group to oversee the implementation of the plan. Wool 2030 will help to inform the development of AWI’s three-year Strategic Plans.

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Consultation Agree / Industry Agree Mandatory

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
30 Apr 2019 30 Jun 2019 Complete
 
FINDINGS

AWI provides a stakeholder engagement plan to the public, available on its website. AWI has increased stakeholder engagement and consultation in the latest Strategic Planning period. However, submissions received by the Review and our independent woolgrower research indicated that there are opportunities for AWI to develop more effective, respective and meaningful engagements.

 

RECOMMENDATIONS

Develop by 30th April 2019:

• Develop a stakeholder engagement plan that includes measurements of performance. This plan should be flexible enough to allow for modification to lift performance as required

• Invest in multichannel stakeholder feedback consultation to facilitate two-way conversations and more interactive dialogues (e.g. digital means, such as social media). Develop channels that enable AWI to become more explicit in terms of how decisions are formed

 

IMPLEMENTATION PLAN

AWI is committed to improving its consultation processes and enabling all woolgrowers the opportunity to provide feedback on the organisation's activities and operations.

In working towards an improved consultation mode, including the ICC, AWI has reviewed comments relating to consultation in submissions made by stakeholders to the ROP, in addition to suggestions put forward in recent times particularly by woolgrower representative groups.

AWI has conducted an initial workshop with 20 woolgrower representative groups on 9 October 2018 to further explore ways to improve the model and understand their expectations and needs.

Based on the key principles arising from this workshop and subsequent discussions with the current ICC, AWI will work with these stakeholders to develop a new consultation to ensure it meets industry standards and expectations, whilst also meeting the business needs of AWI.

A key element of this new model will be formalised processes across the business to capture outcomes from consultation with woolgrowers, and a feedback mechanism showing how this information has been used within the business.

AWI’s consultation model encompasses not only the ICC, but also other engagement and communication activities undertaken within AWI, and looking at how improved functioning of these and awareness of these by woolgrowers can be achieved.

Appropriate and meaningful metrics will be developed to allow greater transparency of actions taken and the value delivered to woolgrowers and AWI.

This will be discussed by AWI’s management at its strategic workshop in November before being finalised and implemented by April 2019.

AWI is currently reviewing its existing Measurement and Evaluation Framework to identify gaps in the current system and ways to improve how the organisation measures outcomes and communicates the results, measurable outcomes and information with its stakeholders.

This recommendation also relates to recommendations 1.5.2, 1.2.1 and 1.1.6.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI has been proactively consulting with woolgrowers and woolgrower representative groups as part of the development of a new ICC model.

AWI convened a workshop of 20 woolgrower representatives and the government on 9 October 2018 to discuss opportunities for improving AWI's consultation model.

AWI convened a special meeting of the ICC on 20 December to consult on AWI's progress on implementing the Review of Performance.

On 30 January AWI convened a Strategic Planning workshop attended by representatives of 25 woolgrower groups and a representative from the Commonwealth. The primary purpose of this workshop was to improve AWI's consultation efforts, while the specific focus on planning for AWI's next strategic plan 2019-2021, discussion and clarity on AWI's role and purpose was addressed.

This feedback has been invaluable to the development of our new consultation model, which strikes a balanced position, meeting the expectations of woolgrowers, woolgrower representative groups, government and AWI’s business needs.

The new ICC model has been developed alongside AWI’s new Strategic Plan for 2019/20 – 2021/22. AWI’s new Strategic Plan highlights Consultation as a new strategic priority area for AWI.

In developing the new model, the objective was to create a consultation model with a clearly defined purpose. We sought to ensure the model was inclusive of more groups, to bring feedback from the varied regional and organisational perspectives, while ensuring there was a core group that AWI could engage more regularly on more specific issues.

As such, the new model has two key consultation forums: a core group of the AWI Woolgrower Industry Consultation Panel (WICP) and a broader group of the AWI Woolgrower Consultation Group (WCG).

The new model was endorsed by AWI’s ICC at its last meeting on 5th June. Details of the new model are available at www.wool.com/consultation

 

IMPLEMENTATION PROGRESS (100%)

 

THEME AWI POSITION CRITICALITY
Consultation Agree / Industry Agree Critical

 

EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 30 Jun 2019 Complete
 
FINDINGS

There is scope for AWI to improve its engagement and consultation feedback review process via standardisation. There is currently no standard process for documenting and reviewing feedback from stakeholders, nor notification to feedback providers of any action. This significantly inhibits organisational transparency.

 

RECOMMENDATIONS

Redefine the ICC arrangements to ensure a more independent advisory body. This upgraded advisory body should provide independent advice to AWI on investments made, and to identify and recommend opportunities for AWI to consider. The ICC should be renamed to signal these changes. This should occur by 31st January 2019.

 

IMPLEMENTATION PLAN

AWI acknowledges this recommendation and is seeking industry advice and feedback on elements to be included in a new consultation model to ensure it meets industry standards and expectations.

In working towards an improved consultation mode, including the ICC, AWI has reviewed comments relating to consultation in submissions made by stakeholders to the ROP, in addition to suggestions put forward in recent times particularly by woolgrower representative groups.

AWI has conducted an initial workshop with 20 woolgrower representative groups on 9 October 2018 to further explore ways to improve the model and understand their expectations and needs.

Based on the key principles arising from this workshop and subsequent discussions with the current ICC, AWI will work with these stakeholders to develop a new consultation to ensure it meets industry standards and expectations, whilst also meeting the business needs of AWI.

A key element of this new model will be formalised processes across the business to capture outcomes from consultation with woolgrowers, and a feedback mechanism showing how this information has been used within the business.

AWI’s consultation model encompasses not only the ICC, but also other engagement and communication activities undertaken within AWI, and looking at how improved functioning of these and awareness of these by woolgrowers can be achieved.

The newly formed (and re-named ICC) will remain the key forum for AWI to consult with grower representative groups on grower priorities and AWI’s activities and investments.

Specifically based on the outcomes from the consultation workshop held on 9 October 2018, it is anticipated an independent chair will be appointed, the group will have a well-defined role, mission and charter to improve its effectiveness, contribution to and awareness of AWI activities.

Appropriate and meaningful metrics will be developed to allow greater transparency of actions taken and the value delivered to woolgrowers and AWI.

This will be discussed by AWI’s management at its strategic workshop in November before being finalised and implemented by April 2019.

This recommendation also relates to recommendations 1.5.1, 1.2.1 and 1.1.6.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

 

PROGRESS ON IMPLEMENTATION

AWI has been proactively consulting with woolgrowers and woolgrower representative groups as part of the development of a new ICC model.

AWI convened a workshop of 20 woolgrower representatives and the government on 9 October 2018 to discuss opportunities for improving AWI's consultation model.

AWI convened a special meeting of the ICC on 20 December to consult on AWI's progress on implementing the Review of Performance.

On 30 January AWI convened a Strategic Planning workshop attended by representatives of 25 woolgrower groups and a representative from the Commonwealth. The primary purpose of this workshop was to improve AWI's consultation efforts, while the specific focus on planning for AWI's next strategic plan 2019-2021, discussion and clarity on AWI's role and purpose was addressed.

This feedback has been invaluable to the development of our new consultation model, which strikes a balanced position, meeting the expectations of woolgrowers, woolgrower representative groups, government and AWI’s business needs.

The new ICC model has been developed alongside AWI’s new Strategic Plan for 2019/20 – 2021/22. AWI’s new Strategic Plan highlights Consultation as a new strategic priority area for AWI.

In developing the new model, the objective was to create a consultation model with a clearly defined purpose. We sought to ensure the model was inclusive of more groups, to bring feedback from the varied regional and organisational perspectives, while ensuring there was a core group that AWI could engage more regularly on more specific issues.

As such, the new model has two key consultation forums: a core group of the AWI Woolgrower Industry Consultation Panel (WICP) and a broader group of the AWI Woolgrower Consultation Group (WCG).

The new model was endorsed by AWI’s ICC at its last meeting on 5th June. Details of the new model are available at www.wool.com/consultation

 

IMPLEMENTATION PROGRESS (100%)

3 out of 3 recommendations completely implemented

 

THEME AWI POSITION CRITICALITY
Collaboration Agree / Industry Agree Recommended
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 30 Jun 2019 Complete
 
FINDINGS

While AWI already has a level of communication with cross-collaborators, the current engagement and communication approach is mostly tactical and on a project-by-project basis. There is an opportunity for AWI to lift the overall commitment and engagement level across their collaboration network by applying a more strategic, longer-term, collaborative approach that is appropriate for the type of organisation.

RECOMMENDATIONS
  • In line with recommendation 1.7.3, establish a more sustained, systematic and broader engagement approach for the end-to-end cross-collaboration in order to create deeper and greater levels of engagement and relationships across AWI's collaboration network:
  • Strengthen communication and engagement across multiple channels (e.g. enhance the quality of briefings and feedback sessions to provide greater opportunities for two-way communications)
  • Conduct an early stage dialogue with potential collaborators to provide opportunities to address queries on selection criteria and requirements
  • Consider providing more information in feedback letters (e.g. greater explanation on the rationale for AWI's decision, more context on the specific issue)

This should be implemented by 31st January 2019.

IMPLEMENTATION PLAN

Currently AWI’s project initiation comes from three channels; formal call for proposals, commissioned work and ad hoc submissions throughout the year.

AWI will develop Project Initiation Guidelines for its project managers to enhance AWI’s collaboration opportunities. These guidelines will identify the opportunities for collaboration across key AWI areas; the range of collaborator consultation activities undertaken by AWI staff; outline expectations of staff to support improved partnerships; and record the outcomes in AWI’s updated project management system and tools. AWI will publish these Project Initiation Guidelines and updated processes on its website so it is available to applicants. These will enable AWI to enhance reporting and transparency with stakeholders on how AWI has identified and monitored collaboration efforts.

The Project Initiation Guidelines document will be reviewed annually and listed in AWI’s new Deed of Delegation to CEO policy document.

To further enhance guidance to prospective collaboration partners, AWI will provide clear project selection criteria to applicants on AWI’s Call for Proposals website. This will also guide and enhance the quality of feedback AWI provides to applicants on assessed proposals.

Currently AWI and MLA have formal annual ‘Eureka’ meetings to discuss opportunities for alignment and identify gaps in investment. AWI will formalize the outcomes of these meetings, and hopefully with the cooperation of MLA, make the outcomes public.

Further AWI will ensure the outcomes of these meetings are fed back into AWI’s project initiation process and will use outcomes to improve feedback to potential partners and inform its annual review of its Project Initiation Guidelines.

In September 2018, AWI brought forward its annual call for proposal process by two months to align with MLA’s annual call for RD&A projects. The intention of bringing forward this key activity by AWI was specifically to improve collaboration and strategic alignment of levy payer funds with MLA.

To ensure alignment across AWI operations, management will capture relevant data, including collaboration, within AWI’s project management system. This will be embedded in an updated suite of AWI project management tools.

AWI will formalize its current process for state-based meetings with potential RD&E and commercialisation partners by publishing details of the process on its website. To enhance dialogue and opportunities for further collaboration, AWI will ensure all potential partners (including agencies, universities, RDCs and CRCs etc.) are aware of these meetings and AWI’s processes and guidelines for co-investment.

AWI currently co-invests with other RDCs where strategic objectives align. AWI will develop and publish on its website, an RDC strategic collaboration model which maps AWI priority areas and issues common to other RDCS. This will assist AWI to identify opportunities for working together and may present new areas for co-investment.

This recommendation also relates to 1.2.1, 1.7.2, 1.7.3, 1.8.3 and 1.13.2.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

New Project Initiation Guidelines for Collaboration and for specific RDC Collaboration have been approved. They provide clarity to staff around collaboration expectations. Both documents guide the process for initiating collaborative projects and monitoring the collaboration contribution with the outcome of enhancing AWI’s collaboration opportunities.

The guidelines cover three particular areas:

a) Participate in the opportunities for collaboration - such as greater networking, communication and engagement across the research community to increase collaboration opportunities.

b) Expectations of AWI staff in consultation for collaboration - namely reaffirming that collaboration is the default mode of investment for AWI.

c) Project management for collaboration - including tools and checklists to better identify and document collaboration opportunities and guidance for providing written feedback to proponents that includes an explanation of AWI’s decision and invites a response on the adequacy of the feedback from the proponent.

The Guidelines are publicly available www.wool.com/about-awi/where-we-invest/call-for-proposals/

AWI is tracking and reviewing the implementation of the guidelines and will revise its processes where required to continue to improve its communication and engagement with collaborators.

In addition to the Guidelines, AWI’s new Investment Protocols approved by the AWI Board in May 2019 also outline the considerations for identifying collaboration opportunities. This policy has been made available for all employees to access on the AWI intranet as part of the Investment Protocols Ref 1.2.2), as with all other policies.

 

IMPLEMENTATION PROGRESS:

100%

THEME AWI POSITION CRITICALITY
Collaboration Agree / Industry Agree Recommended
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
31 Jan 2019 30 Jun 2019 Complete
 
FINDINGS

AWI has developed procedures for selecting parties for collaboration. However, through written submissions and stakeholder interviews, some stakeholders indicated a perception that these practices on party selection were not always followed through.

RECOMMENDATIONS

Comply with procedures for selecting parties for collaboration and implement a tracking system to monitor the process and ensure that procedures are correctly and consistently followed through. This should be implemented by 31stJanuary 2019.

IMPLEMENTATION PLAN

To enhance AWI’s improved collaboration (outlined in 1.7.1), AWI will update its suite of project management tools from project initiation to completion to including new fields which will support AWI’s ability to monitor and track compliance with internal procedures and the newly-developed Project Initiation Guidelines.

AWI will publish these Project Initiation Guidelines and processes on its website available to applicants. These will enable AWI to report more transparently on how AWI has identified and monitored collaboration efforts.

This recommendation also relates to 1.2.1, 1.7.1 and 1.7.3.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

New Project Initiation Guidelines for Collaboration and for specific RDC Collaboration have been approved. They provide clarity to staff around collaboration expectations. Both documents guide the process for initiating collaborative projects and monitoring the collaboration contribution with the outcome of enhancing AWI’s collaboration opportunities.

The guidelines cover three particular areas:

a) Participate in the opportunities for collaboration - such as greater networking, communication and engagement across the research community to increase collaboration opportunities.

b) Expectations of AWI staff in consultation for collaboration - namely reaffirming that collaboration is the default mode of investment for AWI.

c) Project management for collaboration - including tools and checklists to better identify and document collaboration opportunities and guidance for providing written feedback to proponents that includes an explanation of AWI’s decision and invites a response on the adequacy of the feedback from the proponent.

The Guidelines are publicly available www.wool.com/about-awi/where-we-invest/call-for-proposals/

AWI is tracking and reviewing the implementation of the guidelines and will revise its processes where required to continue to improve its communication and engagement with collaborators.

In addition to the Guidelines, AWI’s new Investment Protocols approved by the AWI Board in May 2019 also outline the considerations for identifying collaboration opportunities. This policy has been made available for all employees to access on the AWI intranet as part of the Investment Protocols (Ref 1.2.2), as with all other policies.

 

IMPLEMENTATION PROGRESS:
100%
THEME AWI POSITION CRITICALITY
Collaboration Agree / Industry Agree Critical
EY DUE DATE AWI ANTICIPATED DELIVERY DATE STATUS
30 Apr 2019 30 Jun 2019 Complete
 
FINDINGS

Independent woolgrower research showed that 45% of woolgrowers believe that AWI collaborates well with other agricultural Research and Development bodies.

RECOMMENDATIONS

Develop a cross-RDC collaboration model as part of the long-term industry strategy, detailing the following:

  • definition and role of cross-RDC collaboration (e.g. MLA)
  • method of sharing resources
  • method of accessing different markets
  • funding allocation
  • ownership of IP
  • governance and structure
  • sponsorship from Executives
  • reporting of progress and outcomes

This should be developed through extensive consultation with levy payers and implemented by 30th April 2019.

IMPLEMENTATION PLAN

AWI currently co-invests with other RDCs where strategic objectives align. AWI will develop and publish on its website, an RDC strategic collaboration model which maps AWI priority areas and issues common to other RDCS. This will assist AWI to identify opportunities for working together and may present new areas for co-investment.

AWI will include the cross-RDC collaboration model in its Strategic Plan, publish it on the website and provide to any funding proponents which will be informed through collaboration and consultation with levy payers.

This recommendation also relates to 1.2.1, 1.7.1, 1.7.2 and 1.12.1.

Progress on the implementation of this recommendation will be reported each week on AWI’s ROP Implementation Portal.

PROGRESS ON IMPLEMENTATION

The AWI Strategic plan for 2019/20 – 2021/22 has included core elements from its Project Initiation Guidelines published on its Call for Proposals web page https://www.wool.com/about-awi/where-we-invest/call-for-proposals/ (Ref 1.7.1 and 1.7.2. These elements can be found under section 2.4 “Collaboration” in the Strategic Plan and highlight that collaboration is an expectation, what the benefits of collaboration are, the types of collaborators sought and examples of current collaborative projects. In support of the Strategic Plan, the Project Initiation Guidelines are included in AWI’s Investment Protocols published as an internal policy on its intranet (Ref. 1.2.2). They include the definition and role of cross-RDC collaboration, the contractual arrangements for resources, the method for accessing collaborative opportunities, ownership of IP, the mechanism for allocating and recording funding, the sponsorship from Executives, the project governance and tools, the relationship to the Council of Rural RDCs and the reporting of progress and outcomes from collaboration.

IMPLEMENTATION PROGRESS:
100%

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