Rural Industries
Research & Development Corporation

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RIRDC Strategic Plan: 1997 to 2002

Portfolio Management

RIRDC's ability to carry out its job rests on the creativity of its staff. It has an obligation to do this in a way which, when benchmarked, is best practice. It also has an obligation to ensure that RIRDC operations are open and transparent and that Research and Development program outputs are accessible to clients.

Staffing

Program Impact Evaluation

Communications

Objective

To ensure that all our principal stakeholders have access to sufficient information about RIRDC's role, activities and R&D program outputs to make rational choices on adoption within their enterprises or policies.

Background statement

Communicating effectively with our many stakeholders in industry, government, research agencies, the media and the community, located across the length and breadth of rural and metropolitan Australia, poses a special challenge for RIRDC.

Strategies

We shall achieve this objective by:

Performance indicators

We will measure our success by:


Staffing

Objective

To attract and retain an innovative, productive, creative and committed group of staff.

Background statement

Most of RIRDC's staff are headquartered in Canberra but there are program managers who operate on a part-time basis from other parts of the country. It is vital that all of our staff, full-time and part-time, work as a team which delivers value for money.

Strategies

We shall achieve this objective by:

1. recruiting competent people to our staff team by providing a stimulating, safe and healthy work environment, and by appropriate training to regularly update our skills;

2. remunerating our staff team by reference to market movements and personal performance; and

3. supporting our staff team by the provision of leading edge IT services.

Performance indicator

We will measure our success by:

                                

RIRDC CULTURAL STATEMENT

Our cultural vision is to
create a friendly, happy and supportive work
environment. To achieve this we will:


Nurture a climate of mutual trust and respect.

Understand, accept and value individual differences and capabilities.

Recognise and respect the role of a cohesive and cooperative team, built on shared goals, successes and setbacks.

Communicate, question and consult openly and honestly throughout the whole organisation.

Clearly define roles, delegations, responsibilities andaccountabilities.

Support and commit to personal and professional development.

                                 

    

Finance & Administration

Objective

To provide cost-effective and best practice support services for the Corporation.

Background statement

Our finance and administrative support services provide essential back up and accountability for all our activities.

Strategies

We shall achieve this objective by:

Performance indicators

We will measure our success by:


Program Impact Evaluation

Objective

To provide quantification of the impacts of the Corporation's research programs and use these to support more effective decision-making.

Background statement

Program impact evaluation provides an important component of determining whether the research programs are achieving specified performance targets and whether stakeholders funds are achieving measurable impacts.

Strategies

We shall achieve this objective by:

Performance indicators

We will measure our success by:


Serving the Broader Community

A majority of Corporation funding comes from the Federal Government. Other funds come from statutory industry levies and direct contributions from industry partners.

Much of the case for taxpayer investment rests on the market failure aspects of R&D and the public good characteristics of the knowledge developed - its lack of appropriability and wide applicability - enabling spillovers to the community from industry R&D investments.

Without public support, there would be significant under investment and under performance of rural industries and the broader community would be worse off.

In the case of the Corporation, each of its core businesses have strong public good characteristics. Large spillover effects for the wider community and rural communities in particular can be expected. Just one or two new industries in a remote area can overcome the problem of critical mass for a rural town and improve its viability. Also, research ideas discovered in one area can often find wider applicability in the community, delivering safer products produced in a more sustainable way.

And, in serving the broader community interests, we will seek an R&D program where:


Funding the Program

The Corporation has two sources of funds. The first is general funding support from the Commonwealth Government of around $10.5 million each year.

These funds are directed to those industries which do not have statutory research levies in place and to those generic cross-sectoral areas where there are potential benefits to a significant number of rural industries.

The second is statutory levies where the Commonwealth Government matches industry contributions on a dollar for dollar basis up to the maximum of 0.5 per cent of the gross value of production of the product.

The magnitude of the research investment from statutory levies will depend on Industry and Government decisions.

The Corporation will encourage greater industry self-funding and will not maintain funding to industries which do not contribute to the research investment - either via statutory levies or voluntary contributions - after an initial investment period of no more than five years by the Corporation.

The decision of where the Corporation will invest the initial budget allocation from the Commonwealth Government - be it new and emerging industries or the cross-sectoral research agenda - will depend on the anticipated returns from the research investment and knowledge gained from ex-post benefit cost analyses of projects and programs.

While these judgements will be made annually in the context of the Corporation's Annual Operational Plan, the Corporation's intention is that more than half of the general funding support from the Commonwealth Government should be directed to the 'new and emerging' agenda. It proposes this allocation for two reasons:

The very nature of the cross-sectoral agenda means that pay-offs from research can be very high. In addition there will need to be a R&D dimension to the operation of the National Heritage Trust.

But, on balance, our judgement is that the 'new and emerging' agenda should be allocated more than half of general funding support during the period of this Plan.


Corporate Performance Indicators

This Plan sets out performance indicators for each of the key objectives of the Portfolio. In addition there are corporate targets to which we commit ourselves. In the next five years:

Performance Target             Performance Measure                             



We are aiming for:             We will measure our performance by:             



Involvement of end users in    Independent survey of the membership of         

all aspects of R&D investment  Industry Advisory Panels, Representative        

program.                       Organisations and Industry Organisations and    

                               Portfolio Department each two years.            



                               In consultation with industry, development of   

                               Five-year Plans for each of the specific        

                               industry sub-programs by June 1998.             



Translation of research        Independent research impact analyses of         

outputs into industry          projects in the new, emerging and established   

benefits.                      industry programs and future agricultural       

                               systems program with hurdle internal rates of   

                               return of 15%, 20%, 25% and 25%, and/or         

                               average benefit/cost ratios of 2, 5, 10 and 10  

                               respectively.                                   



Review of programs on a        Impact evaluations will be undertaken on a      

four-year rolling evaluation   rolling basis with a separate program targeted  

basis.                         each year. At least ten projects will be        

                               evaluated annually.                             



Expansion of GVP of new and    Comparisons over time and with sector-wide      

emerging industries supported  movements in GVP.                               

by RIRDC programs.                                                             



Strong partnerships with       Level of external funding to new, emerging and  

stakeholders in new, emerging  established industry programs.  In aggregate    

and established industry       terms, at least 50 per cent by June 1999.       

programs.                                                                      



Strong partnership with        Level of external funding in aggregate terms,   

stakeholders in Future         at least 50 per cent by June 2000.              

Farming Systems program.                                                       



Progressive reduction of       Meeting target by end 1998-99.                  

corporate and administrative                                                   

costs and to keep these below                                                  

6 per cent of total budget                                                     

expenditure.                                                                   






Corporate Charter

Core Business

The Board

Stakeholders

Primary Clients

Industry Consultations

Reporting to Stakeholders

There are four key accountability processes to and associated documents for stakeholders:

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Last updated: June 1997
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