Links to Business Objectives

This section of the performance review determines how well the actual work carried out matches the organization's business objectives.

The organization's key objectives may include:

• Stakeholder expectations. For assets in public ownership the customer and the stakeholder may be the same, but are represented by different groups, with the local, state or federal government performing the role of delegated asset owner and the ratepayers or electors performing the role of customer.
• More commercial business drivers. With the commercialization, corporatization or privatization of public service delivery, more emphasis is being put on the commercial performance of the assets. Business drivers are closer to a commercial, private sector activity, with some social obligations required by the stakeholder or the regulator.
• Regulation. All areas of a service authority are subject to a range of different legislative requirements, such as occupational health and safety, accounting standards etc.

The study team need to identify areas in which the performance of the organization will affected by:

• Conforming with the current expectations and regulations
• Identifying possible changes in stakeholder, regulator or customer requirements that will significantly affect the operations, maintenance and capital requirements.

The study team needs to identify the ways in which:

• The organization monitors the expectations of these different groups
• These expectations are fed into their organization planning and total asset management planning approaches.

Business Drivers

The key business drivers include:

• Growth:
  • New customers
  • Unit growth in demand
  • Augmentation to accommodate growth.
• Renewal:
  • Extension of life of assets
  • Improved performance (linked to compliance).
• Compliance/ Regulation:
  • License conditions and requirements including service levels and standards, social issues, response times
  • Other regulations: OH&S, EPA.
• Efficiency/ Improvements:
  • Works that involve investments that will derive savings sufficient to justify the investment.