Organisational Business Plan

Transcription

1 ORGANISATIONAL BUSINESS PLAN Organisational Business Plan AS AT MARCH 2017

2 Organisational Business Plan (OBP) Contents Introducing Auckland Museum s OBP... 1 Summary vision... 2 How we are going to achieve our goals... 3 How the OBP will support strategic planning... 5 The Strategic Capital Spend Operational perspective... 7 Funding forecast... 9 Managing project risk Delivering on the Plan... 12

3 ORGANISATIONAL BUSINESS PLAN Introducing our Organisational Business Plan Welcome to Auckland Museum s strategic 10-year Plan. The OBP is a capital forecast drafted to maintain and develop the Museum for the people of Auckland, where the population is growing and diversifying. The Plan reflects detailed assessments and planning carried out over successive years and is informed by analysis of the expectations of Aucklanders. - It reflects a careful appreciation of the demand that exists for access to the internationally-significant collections onsite, across Auckland and online - It brings to life how we are investing in the collections, audiences and a Māori dimension as described in the published Future Museum 20-year vision The Museum s Trust Board is accountable under the Auckland War Memorial Act 1996 for the long-term sustainable care of the collections and one of New Zealand s leading heritage buildings. The Plan commits capital that accrues from the year-on-year depreciation of the assets of the Museum, held in an Asset Replacement Reserve (ARR). It is delivered via the Levy in the statutory Annual Plan that covers the first three years of the decade of the planning, and is consulted on with the public and Auckland Council. Beyond what is due under the statutory Levy, the Museum is not claiming any additional capital funding from the people of Auckland, via Auckland Council. To make the capital in the ARR go further, the Museum has raised more than $6 million in additional funding from a combination of other sources since The Trust Board prudently invests the ARR to maximise returns and ensure the best value is obtained for every dollar. To address capital in the later years of the plan, supplementing the ARR, the Museum has established the Auckland Museum Foundation.

4 ORGANISATIONAL BUSINESS PLAN Summary vision The OBP is a high level strategy which guides and informs our capital investment plan. It does not replace the statutory Annual Plan OUR VISION required under the Auckland War Memorial Museum Act Honour our role Why? STRATEGIC GOALS He oranga tangata Ka Ao Enriching Lives: Inspiring Discoveries as a war memorial Open up the collections Reach more people Fulfil our building s potential Inspire audiences Make the Museum sustainable 10 YEARS DRIVING PURPOSE Maximise access to collections Engage with the audience OUR GUIDING PRINCIPLES Manaakitanga Kaitiakitanga Mana whenua DIMENSIONS Teu le Vā Pacific Dimension He Korahi Māori Māori Dimension International Dimension How? SUPPORTING STRANDS Furthering the Museum s vision Respecting the heritage Museum Reaching beyond the Museum s walls Creating a digital Museum Ensuring environmental sustainability VALUES Relevant Connected Innovative Respectful Inspired What? ONSITE OFFSITE ONLINE

5 ORGANISATIONAL BUSINESS PLAN How we are going to achieve our goals Our strategic goals as outlined in Future Museum form the touchstones against which we make investment decisions. Work is underway to ensure the Museum is fit for Auckland s future with the approval of a number of projects to proceed over the next eight years. The Museum s Asset Replacement Reserve fund (ARR) receives the annual depreciation levy. This is invested and committed to the Museum s capital expenditure programme. As ARR funds have accrued in value during the planning phase, benefiting the Museum and Auckland Council, the Museum has been able to plan projects without requesting additional funding from the Council. The Trust Board has undertaken the process of planning for capital expenditure carefully and with due diligence. Now the Trust Board is to use the resources of the ARR for the next phase of development of the Museum, its collections and its facilities for the benefit of Auckland s public. The funds in the present ARR balance and the annual depreciation levy from Auckland Council are committed to be spent between now and The Museum will continue to raise additional funding via trusts, grants, donations and bequests as illustrated by the $6 million raised since Funding from the newly established Auckland Museum Foundation will assist us to complete these projects into the future.

6 ORGANISATIONAL BUSINESS PLAN Achieve the Museum s vision Engage, inform, amaze and connect with our visitors, across the Museum s three dimensions (onsite, offsite, online), including as a place of learning. Working from a solid bicultural foundation and observing the principles of He Korahi Māori. HONOUR OUR ROLE AS A WAR MEMORIAL OPEN UP THE COLLECTIONS REACH MORE PEOPLE FULFIL OUR BUILDING S POTENTIAL INSPIRE AUDIENCES MAKE THE MUSEUM SUSTAINABLE SIGNIFICANT IMPROVEMENTS TO THE PUBLIC EXPERIENCE As a cultural institution which serves its public, we will: - Undertake a programme of gallery renewal which will see at least one third of the Museum s gallery spaces refurbished and revitalised - Increase the gallery space available to the public by a fifth - Provide spaces within renewed galleries to enable public programmes to take place - Address current wayfinding within the Museum enabling people to navigate more easily - Increase access by public transport, cycle and on foot to the Museum from the Domain - Increase the volume of collections available via digital access COLLECTIONS CARE AND RESEARCH As a kaitiaki for Auckland s collections, we will: - Improve spaces in order that collections are housed appropriately - Update technical infrastructure and systems required for cost efficiency - Increase and enhance collection records available online - Work with source communities to unlock the knowledge and stories of their collections - Increase access to Māori taonga for co-curation - Strengthen connections with Pacific peoples via increased access to Island communities collections - Increase digital and physical access to collections through visible storage and associated displays CARING FOR OUR HERITAGE BUILDING As kaitiaki for the heritage building, we will: - Update physical infrastructure and systems required for future sustainability and cost efficiency - Continue investment in heritage maintenance for the benefit of current and future generations SPECIFIC PROJECTS INCLUDE: - Delivering the redeveloped commemoration spaces, Pou Maumahara Memorial Discovery Centre and Pou Kānohi New Zealand at War - Refurbishment of Level 3 Commercial Event space after a decade of commercial use - Creating an Eastern Boulevard to navigate more easily from north to south - Investment in ongoing collection digitisation projects and technical infrastructure, with 2,000 new records added online every month - Advancing Tue le Vā through the Pacific Collections Access Project - Heritage preservation of the Sanctuary in the WWI Hall of Memories, and restoration of the eastern and western parapets - Development of an offsite collection facility to enable improved storage and better access to collections

7 ORGANISATIONAL BUSINESS PLAN How the OBP will support strategic planning The OBP develops the forecasts that appeared originally in Future Museum. It addresses the expectation of our Governing Act, which requires the Museum to plan one year in particular and at least two years beyond. The OBP is an action-centred expression of Future Museum which integrates strands of activity that are highly interdependent and would benefit from co-ordination at a strategic level. The OBP is a key document that represents the delivery plan for Future Museum. It combines and synthesises the components of the Future Museum vision. It is expressing coherent, prioritised proposals for resource allocation. CAPACITY BUILDING: In painting a picture of the future, this plan enables us to develop our capacity for delivering on the Future Museum vision, whether that is through our people, our connections with others, or by developing our resources and assets. EFFECTIVENESS: This plan will ensure synergies are realised and conflicts minimised. If required, it will enable us to say what we propose to do less of or not do at all, and to identify trade-offs. RESOURCE ALLOCATION: The OBP will assist in decision-making on the best use of operational and capital budgets; efficient deployment of the Asset Replacement Reserve; and on the targeting of fundraising efforts, including from the Auckland Museum Foundation. ALIGNMENT: This plan will ensure that the Museum continues to align with Auckland Council s vision for the city. STAGING: The OBP will help us to determine the priorities and sequencing of activities; to establish way-points and milestones; and to enable cross-connections with city-wide initiatives and other strategic partnerships. The OBP will include the following areas: public programming collections care and research digital Māori and Pacific dimensions future people capacity gallery renewal commercial.

8 ORGANISATIONAL BUSINESS PLAN Capital Spend In order to achieve strategic goals, Auckland Museum Capital Expenditure for 2015/2016 to 2019/2020 is outlined by category. Capital Spend 2015/ /2020 $35m $30m $25m $35m $30m $25m $20m $20m $15m $15m $10m $10m $5m $5m /2016 Actual 2016/2017 Budget 2017/2018 Plan 2018/2019 Indicative 2019/2020 indicative 0 Finance, Commercial & People Building Heritage Maintenance Building and Security ICT Collection and Research Public Experience Offsite Collection Facility Future Museum $69,325 $0 $1,225,815 $1,078,284 $3,512,460 $3,732,663 $0 $2,251,372 Total $11,869,919 $275,000 $1,086,000 $810,000 $1,419,000 $2,466,600 $4,053,400 $8,548,000 $7,962,000 Total $26,620,000 $535,000 $550,000 $793,667 $900,000 $3,040,832 $653,000 $2,067,409 $18,236,413 Total $26,776,321 $370,000 $300,000 $957,333 $705,000 $729,000 $100,000 $1,179,609 $29,559,211 Total $33,900,153 $270,000 $300,000 $110,000 $800,000 $867,000 $100,000 $927,197 $8,960,475 Total $12,334,672

9 ORGANISATIONAL BUSINESS PLAN Operational perspective Below are the key operational activities which support the significant amount of capital projects initiated by the Future Museum, our 20-year strategic plan. He Korahi Māori He Korahi Māori invites Auckland Museum to consider, at the earliest moment, a Māori dimension, perspective, approach or idea in everything we do. This initiative requires the Museum to have internal Māori capability in its staff and management to ensure we can access sound Māori advice and guidance in a timely and appropriate way. It requires the Taumata-ā-Iwi to be well supported by the Museum so that they can provide excellent advice to the Museum and act as a conduit for the Museum to external Iwi and Māori communities. In a post-treaty of Waitangi settlement era we will focus our efforts on building robust relationships with Iwi and Māori communities, starting with those in Tāmaki Makaurau and across Aotearoa New Zealand, so that Auckland Museum is seen as a valued Treaty partner that is integral to supporting Iwi and Māori communities to achieve their cultural and heritage aspirations. By doing so, the Museum is in a stronger position to develop and share authentic, unique Māori stories and perspectives with our audiences in partnership with Māori; and to ensure that our care of taonga, which we share kaitiaki guardian responsibilities for with Iwi and Māori, is exemplary. Operating financials summary $50m $40m $30m $20m $10m /17 Digital enhancement 2017/18 OPERATIONAL COST 2018/ / /21 OPERATIONAL REVENUE The aim is to create a Digital Museum for tomorrow where the public reach is extended through the use of technology and social media. To achieve this, the focus will be on building Digital Thinking and innovation as a capability throughout the Museum by means of professional development and change in practice. The investment is therefore one of time. The Museum will seek to also leverage the investment in ICT systems and the increased digitisation of our collections. 2021/ / / /25 Learning and community participation 2025/26 As well as being a unique place for formal and social learning, the Museum s reach is being extended through a growing programme beyond the walls. This takes our vibrant offering for early childhood, schools, families and adults out to communities around Auckland. We are growing our learning and community programme in partnership with a wide range of organisations in order to reach a more diverse and bigger audience, including by developing a digital learning capability and providing increased access to our collections.

10 ORGANISATIONAL BUSINESS PLAN Operational perspective continued Exhibitions and gallery renewal Our vibrant exhibition programme continues to be a primary means of showcasing the collections and serves as a key visitation driver, especially in the main space with high-profile shows which are a mix of Museum-developed and international touring exhibitions. The WWI Centenary exhibitions will continue to be important through to Gallery renewal will see an increase in activity, whether this is through small-case change-outs or via the use of entirely new galleries. Collections access, care and development Our Collections and Research staff are increasingly engaging online with the wider public (both individuals and community groups) around our collections through / web-based enquiries and the development of databases such as Collections Online and He Toa Taumata Rau Online Cenotaph. Our staff encourage and support increased access to our physical collections as well as assisting with outward loans, provision of images and curatorial advice and expertise. We aim to represent Auckland s diverse natural and social environments and their context in the wider world by collection acquisition through purchase and donations as well as from extensive fieldwork. We exercise kaitiakitanga (guardianship) through prudent stewardship of the collections and associated information, including the physical care of our collections and the continuous improvement of storage, display and access systems. An offsite facility will be developed to accommodate collections temporarily displaced as a result of core building works, gallery renewals and essential collection processing and digitisation projects. A range of appropriate quality storage and work environments will be provided to ensure ongoing care and access to collections. Our Human History, Natural Sciences and Documentary Heritage staff undertake original research and develop new knowledge based on our collections, staff scholarships and networks with other centres of expertise. People One consistent strand in enabling us to deliver the proposed investment over the coming years will be the quality and capability of the Museum s people, whether paid staff or volunteers. New skills, new technologies and evolving demographics in our city will create fresh opportunities and challenges for our wider team. With the People and Organisation team providing an essential support service, we will embed a performance management and talent development system that will develop and grow our wider team with training and learning programmes. We will nurture our future leaders at every level through succession planning and continue to prioritise opportunities to enable people to progress in their careers. Our diversity will be broader, deeper and values driven, leading to strength and resilience and stronger communication. Workforce policies will be agile, flexible and principled, connecting with our city and our nation. Sustainability We seek to supplement ratepayer investment with additional revenue-generating streams through commercial access to the Museum and its event spaces, our retail store with an increasing presence online, provision of Māori cultural performances and Museum tours as well as from the development of bequests, donations and sponsorship. We will continue to look to reduce our impact on the environment by adopting further sustainability initiatives reducing waste, water and energy consumption through solar panels and recycling. Marketing, communications, brand and visitor research Auckland War Memorial Museum exists for its public, and our stakeholders, customers and communities are many. Listening to and understanding what our visitors need from us plays a critical part in the Museum s success. Communication with our diverse audiences onsite, offsite and online is a priority, as we seek to drive awareness of and engagement with our collections research and vibrant programming. Revenue generation In order to create a sustainable foundation, we seek to supplement ratepayer investment with self-generated income streams. This will involve promoting the Museum as a commercial venue, or through our retail, café or car park operations; self-generated revenue contributes around 20% of total revenue sources. The Museum has a vital role to play in Auckland s visitor economy, and visitors to the city contribute to self-generated revenue through tourism products such as tours and Māori cultural performances.

11 ORGANISATIONAL BUSINESS PLAN Asset Replacement Reserve Forecast Indicative Balance Asset Replacement Reserve 2015/ /2023 Indicative Forecast ASSET REPLACEMENT RESERVE BALANCE TREND The Museum s approach to funding the strategic capital expenditure is forecast (opposite). The prudent investment of the Museum s existing Asset Replacement Reserve will cover the funding required until 2020/21. Other sources of funding, including sponsorship and investment income will also contribute to our funding forecast. The financial strategy to cover the funding shortfalls forecast in 2025/26 is anticipated to be generated from the activities of the Auckland Museum Foundation. The Foundation, which is incorporated under the Charitable Trusts Act 1957, will receive donations from many charitable sources including donors who support the advancement of the Museum. The Foundation designs fundraising campaigns to facilitate additional revenue for our strategic programme of projects and will build our fundraising reserves after 2025/26 for the benefit of Auckland s future generations. $70m $60m $50m $40m $30m $20m $10m $0 $60.9m 2015/16 $46.3m 2016/17 $31.2m 2017/18 $8.5m 2018/19 $6.4m 2019/20 $4.0m 2020/21 $5.4m 2021/22 $9.7m 2022/23

12 ORGANISATIONAL BUSINESS PLAN Managing project risk Museum s risk management framework The key elements of the Museum s risk management process in respect of our portfolio of projects include: RISK IDENTIFICATION: This identified project risks that could expose the Museum to uncertainty around the achievement of our strategic, operational and financial objectives. We also rated project risks around technical complexity and the Museum s capability to deliver the portfolio of projects. Consideration was given to matters that impact both positively and negatively. RISK ASSESSMENT: We based our assessment upon the likelihood of a given risk event occurring and the consequences if it were to occur. This resulted in the development of an inherent risk matrix. CONTROLS AND MITIGATIONS: Mitigating practices and controls were identified, including all the policies, procedures, practices and processes in place to provide reasonable assurance of the management of the Museum s risks. Where mitigating practices/ controls exist but are not being followed and monitored, then adequate control does not exist, as in order for mitigating practices/controls to be effective they must also be communicated, actioned and monitored. Inherent risk matrix The ratings for likelihood and consequence for each risk have been combined, using the matrix below, to determine the overall risk ranking. LIKELIHOOD 5 M H H H H 4 M M H H H 3 L M M H H 2 L L M M H 1 L L L M H CONSEQUENCE HIGH RISK must complete control evaluation immediately. Requires Trust Board/Executive review. MODERATE RISK management responsibility must be defined. Control evaluation where appropriate. Management review. LOW RISK monitor. Examination of controls is not specifically required. Note: Where likelihood is considered to be rare and consequence considered to be extreme such risks shall be rated as high risk. The residual risk table below provides the Museum with the required level of management attention and recognises when treatment plans are to be developed. Residual risk refers to the level of risk that remains within the Museum after consideration of all existing mitigants and controls. INHERENT RISK HIGH RISK LOW AND MODERATE RISKS Continuous Review No major concern ADEQUATE CONTROLS Active Management Active Management/ Periodic Review Periodic Review INADEQUATE CONTROLS MITIGATING PRACTICES/ CONTROL RATING ACTIVE MANAGEMENT risks where current treatment options require preparation, active review and management on an ongoing basis. ACTIVE MANAGEMENT/PERIODIC REVIEW requires active management where consequence is rated 5; otherwise, periodic review. CONTINUOUS REVIEW control is adequate, continued monitoring of controls to confirm this, i.e. at least quarterly. PERIODIC REVIEW control is not strong but risk consequence is not high. Options to improve control or monitor risk consequence to ensure it does not increase over time.

13 ORGANISATIONAL BUSINESS PLAN Managing project risk Risk profile summary STRATEGIC GOALS 1 Make the Museum sustainable 2 Make the Museum sustainable 3 Make the Museum sustainable Open up the collections 4 Inspire audiences Reach more people 5 Make the Museum sustainable 6 Fulfil our building s potential Make the Museum sustainable 7 Make the Museum sustainable RISK CATEGORY Governance Funding Funding Reputation Delivery Business continuity RISK DESCRIPTION Governance structure for project management is not efficient or effective and fails to meet compliance obligations. Projects fail to obtain full funding and are reconfigured from original proposal. Unable to obtain long-term funding from Auckland Council for Heritage Collection Storage project. Funding and building delays compromise the ability of the Museum to host scheduled exhibitions and programmes. Projects fail to deliver on time and on budget due to contract management risks, dependent projects failing to deliver, complexity of the project and project overruns. Impacts of infrastructure projects compromise the ability of the Museum to continue to operate sustainably through that period. INHERENT RISK RATING H H H H H H MITIGATIONS Projects with strategic significance are subjected to a rigorous process and are regularly monitored by the Executive Team. This team meets regularly to discuss projects, with minutes distributed to key stakeholders. Executive Team members have adequate skills including facilities development, fundraising, commercial, financial and project management. The Museum maintains multiple sources of income including the establishment of the Auckland Museum Foundation, which is expected to raise sufficient finance to fund any shortfalls. Opportunity to have the Museum s Heritage Collection Storage Project included in Auckland Council s Long Term Plan. Funding strategy in place to help ensure funding will be received on time. Committed funding already achieved for the majority of building projects, creating cost certainty. Experienced project management team with fundraising skills in place. Documented programme of key milestones with contingency plans established. Experienced leadership team with appropriate facilities development, procurement, fundraising, financial and project management skills. Documented programme of key milestones with contingency plans in place. Project forecasts with appropriate levels of contingency in place. Appropriate delegations in place as regards authorisation and monitoring of project expenditure. Experienced leadership team with appropriate project management skills in place. Documented programme of key milestones with contingency plans established should delays occur. Delivery Lack of skilled people and adequate funding. H Work undertaken to identify critical capacity. Learning and development programme in place. Ensure adequate governance in place to resolve conflicting demands. RESIDUAL RISK L M M M M L M

14 ORGANISATIONAL BUSINESS PLAN Delivering on the Plan Auckland Museum s approach to this prudent investment programme is sequenced to enable the Museum to remain open throughout. A structured and paced delivery has been designed to achieve early enhancement of the visitor experience and greater access to collections, whilst ensuring cost-effectiveness remains a top priority. Review and update the plan Auckland Museum s Trust Board (with the support of the Executive Team): 1. Select and prioritise the projects for implementation 2. Ensure resources are adequate for the delivery of the projects and covers people, funding and facilities 3. Review, track and monitor delivery of all projects, and assess resource utilisation; in particular, for those projects and programmes that enable Auckland Museum to remain fit for the future 4. Decide on any variations to improve project performance, reduce risks and adjust the portfolio priorities to meet the Museum s goals and objectives. An internal OBP task-force group will review and update the plan on a regular basis. Any enquiries relating to the OBP can be directed to the Museum s Trust Board secretary: TrustBoardSecretary@aucklandmuseum.com