Corporate Plan

The Corporate Plan 2016-17 to 2019-20 is available in HTML and also as a PDF

Introduction

The accountable authority of the Royal Australian Mint (the Mint) presents the 2016–17 to 2019-20 corporate plan, which covers the periods of 2016–17 and the following three financial years, as required under paragraph 35(1)(a) & (b) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). 

This corporate plan has been developed, in an environment of global uncertainty, to provide direction for the Mint. Through a consultative process with staff, senior managers and board members, the strategic intent was agreed upon and targets set to achieve an acceptable Return on Net Assets.

The focus for the next four years will be to achieve profitable growth by:

  • Delivering value to the shareholders;
  • Understanding and meeting the expectations of customers;
  • Optimising the use of the Mint’s assets including its strongly recognised brand;
  • Maintaining a healthy, safe, secure and environmentally progressive workplace and facility;
  • Simplifying systems and process to become more agile and flexible; and
  • Continuing to recognise and demonstrate the importance and value of staff.

Corporate Planning Process

In developing the corporate plan (originally created in 2013), the Mint conducted a number of workshops with staff, senior managers and board members and in that process drew on a recently established body of research, as well as the experience and knowledge of staff that have been in the minting industry for many years.

A strategic planning review was undertaken during the previous financial year, the outcome of which is this new corporate plan 2016–17 to 2019–20.

While historical performance provided a base from which targets and key performance indicators (KPIs) have been determined, conversations with and feedback from customers, both domestic and international, has also provided valuable input into the planning process.

Description of the Mint

The Mint, based in Canberra, was established in 1965 to produce the newly created decimal currency for the nation and since that time has produced an estimated 15 billion circulating coins. The Mint also produces numismatic coins (collector and commemorative) for Australia and international markets, as well as circulating and numismatic coins for other countries.

The tourism gallery provides visitors to the Mint with an education on the history of the coinage system for Australia and coin production and that, combined with the retail shop, ensures the experience is both enlightening and memorable.

Purpose & Core Functions

The purpose and core functions of the Mint could be described in practical terms such as the production of circulating and numismatic coins but we have chosen to define the activities of the Mint in terms of the use of and experience associated with the collection of coins and the presentation of programs delivered by the Mint.

With that as our intention we have defined the Mint as follows:

Product Function and/or Experience

Circulating Coin

Part of the national currency system of Australia that has real value and acts as a medium of exchange, and on which depict designs of national flora and fauna, heritage or, on occasions, nationally significant historical or contemporary events.

Numismatic coins

Used as a medium that represents real and intrinsic value and on which depict designs that tell stories about Australia, its history, heritage, environment, wildlife, culture and achievements.

Gallery

A community service that provides visitors to the Mint with an education on the history of Australian coinage as well as how technology is being used in a contemporary manufacturing environment to produce metal products.

Services - minting, machining and consulting

A range of associated assets, knowledge and services that is being utilised to ensure the optimisation of the Australian Government investment into the Mint.

Environmental Situation

A thorough analysis of the performance of the Mint, marketplace, economic and regulatory environments was conducted as part of the planning process with the following being a summary of the key outcomes of that process:

  1. The economic environment in which the Mint has operated in over the last four years has been volatile and uncertain. In the last year of the 2013–2016 strategic plan both the domestic and international economic conditions were challenging and set the scene for what has been forecast to be the situation for this new corporate plan. Utilising the Treasury forecast for GDP and commodity prices the Mint is expecting to operate in an environment of ongoing lower economic growth, volatile commodity prices and continuing worldwide uncertainty.
  2. While the Mint doesn’t directly compete for the domestic circulating coin business we do benchmark our cost base against that of potential international competitors. With the commercial business of numismatic, custom minting, international circulating coin supply and investor products we do compete both domestically and internationally against private mints and state-owned sovereign mints in what is becoming an increasingly crowded market.
  3. The core business of the supply of circulating coin is under threat from alternative forms of ‘disruptive’ technology such as contactless payment like ‘payWave’ or ‘PayPass’, digital currency and other forms of transaction capability.
  4. The Mint is in a sound financial position which provides a good base from which to grow and invest.
  5. The governance and control processes are well established and provide a level of oversight that helps to minimise risk.
  6. The ownership by the Australian Government and the associated brand are regarded by the market as significant strengths.
  7. An investment in innovation and creativity, and the development and retention of knowledge is essential.

Strategic Intent

The Mint, inspired by innovation and through the sustainable utilisation of its assets, will provide value for money solutions and experiences that deliver profitable growth. Based on the environmental factors mentioned above and in establishing the targets for the next four
years the Mint has:

  • Allowed for the economic uncertainty in the world;
  • Recognised the changing demographics and demand drivers as well as the introduction of new technologies;
  • Identified the relatively insignificant market share positions that the Mint has in the international market;
  • Focused on the ability to leverage its marketplace strengths;
  • Incorporated major events and marketplace expectations;
  • Acknowledged its responsibility and accountability to its key stakeholder – the Australian Government; and
  • Allowed for the continuing journey to deliver efficiency and effectiveness through capability enhancement and the adoption of the LEAN approach to Continuous Improvement.

Performance Objectives

Intended Results, Strategies and Performance Measures: 2016-17 to 2019-20

To achieve its strategic intent, the Mint will:

Intended result Grow profitable revenue and optimise the use of all leveragable assets
Strategies
  • Building on the capability of the circulating coin supply chain program, implement further supply chain savings facilitated through new contract negotiations with the banks.
  • Using strong and relevant themes, product innovations and new distribution relationships continue to grow market share in domestic and international numismatic markets.
  • Continue to target ‘other’ Pacific Island and near neighbour countries for the supply of circulating coins.
Performance
Measures
  • Grow profitable commercial revenue to $80m.
  • Limit impact of reduction in demand for circulating coin.
  • Increase current ratio.
  • Achieve 300,000 visitors and then sustain.
Targets for
Performance
Measures
  • Total revenue at $160m at an average gross margin of 36%.
Intended result reduce waste
Strategies
  • Continue to identify, prioritise and implement ‘lean’ projects under a formalised and centralised structure.
  • Implement a ‘supply chain approach’ to vendor management program for the core ‘materials’ of blanks.
  • Refine the program of measures to manage using the Balanced Scorecard (BSC) approach and maintain.
  • Further enhance the commitment to and the engagement with systemised planning – all products must be planned for production and sales must be forecast.
Performance
Measures
  • Business-wide adoption of LEAN/Continuous Improvement.
  • Acceptance and adoption of quality management system (QMS).
Targets for
Performance
Measures
  • Productivity per employee.
  • Reduction in rejects and rework by average 5%.
Intended result satisfy stakeholder expectations
Strategies
  • Create and maintain a stakeholder management program.
  • Ensure all reporting is on time.
  • Ensure ongoing conformance to regulatory and governance requirements to avoid surprises.
  • Anticipate and actively communicate.
Performance
Measures
  • 100% compliance.
  • Acceptance of strategic plan.
  • Achieve agreed outcomes.
Targets for
Performance
Measures
  • 95% deliver in full and on time.
  • 85% stakeholder satisfaction.
Intended result Provide a safe, secure and sustainable operational environment
Strategies
  • Maintain investment in safety and environmental best practice.
  • Maintain investment in security.
  • Identify and implement where feasible further opportunities to
  • reduce environmental footprint.
Performance
Measures
  • Business-wide adoption of LEAN/Continuous Improvement.
  • Acceptance and adoption of quality management system (QMS).
Targets for
Performance
Measures
  • Productivity per employee.
  • Reduction in rejects and rework by average 5%.
Intended result Build on brand awareness
Strategies
  • Maintain investment in innovation in products and programs.
  • Increase investment in brand awareness.
  • Utilise new distribution relationships to attract active customers.
  • Continue to conduct programs and events that showcase the Mint and its products.
Performance
Measures
  • Active customer growth.
  • Growth in active customer spend.
  • Controlled growth in visitation.
Targets for
Performance
Measures
  • 60% Net Promoter Score.
  • 80% customer satisfaction.
Intended result Have engaged, motivated and committed staff
Strategies
  • Ensure skills match the existing and future requirements of the Mint.
  • Maintain investment in health and wellbeing program.
  • Maintain investment in leadership development program.
  • Ensure Individual Work Plan (IWP) program is continuously implemented and where required improved.
  • Continue to appropriately recognise staff contribution and in particular exceptional performances.
  • Continue to keep staff informed through regular, open and transparent communication.
Performance
Measures
  • Achieve retention rate target of 70%.
Targets for
Performance
Measures
  • 85% employee satisfaction.
  • Low unplanned absences.
Intended result Be responsive, flexible and agile
Strategies
  • Focus on innovation, research and development.
Performance
Measures
  • Decrease in turnaround time to respond.
  • Deliver in full and on time.
Targets for
Performance
Measures
  • Cost of doing business.

Capability Requirements

In order to achieve the above-mentioned goals, the Mint will require the following:

  1. Ongoing Australian Government support for the strategic plan.
  2. Funds available to continue to prudently reinvest in:
    •    a. research;
    •    b. innovation;
    •    c. new technology, and
    •    d. system improvements.
  3. A quality workforce team, who are engaged, motivated and empowered.
  4. An effective and comprehensive communication program.
  5. An enabling and robust governance structure.
  6. Effective brand and customer relationship management program.
  7. An enabling and effective enterprise solution and IT systems.
  8. Strong and trusting relationships with key stakeholders.

Risk Oversight & Management

The Mint has adopted a Risk Management Policy and Framework, which formalises the Mint’s approach to risk management across the organisation. It is designed to support managers at all levels to anticipate uncertain events, exploit opportunities and respond appropriately to potential weaknesses.

The framework is consistent with Australian/New Zealand Standard (AS/NZS) ISO 31000:2009 and Comcover’s Better Practice Guide for Risk Management (June 2008) as well as the Commonwealth Risk Management Policy.

The Mint is committed to a comprehensive, coordinated and systematic approach to the management of risk. Risk management is not a standalone process but requires ongoing assessment, including the need to review risks in light of new developments. Risk management is an integral part of the Mint’s governance framework, and is considered in the context of the Mint’s strategic outputs and outcomes, business planning and reporting, and in day-to-day decision-making.

The Mint addresses its internal and external risks on a whole of organisation basis. The following are the Mint’s identified risks and their mitigation strategies:

Risk

Inherent

Residual

Mitigation strategies

Failure to fully comply with Mint critical accreditations (safety, quality, environment, financial audits etc.)

Medium

Low

• Timely internal and external audits and actions arising from audit results are completed.
• Continuous education and commitment to agreed business processes and timely reporting.

Diminishing demand for coins due to emerging technologies

High

Medium

• Investigate the options for security underwriting of crypto currency.
• Propose a coin reform program.
• Research and investigate options for digital currency.
• Promote the security and cost benefits of using tangible currency.
• Continue to encourage coin demand through innovative product options.

System failure

High

High

• Replace existing system.
• Implement business continuity plan (BCP).

Severe economic downturn

High

High

• Retain flexible staffing arrangements.
• Diversify into counter cyclical product.

Fraud and/or security breach

High

High

• Ensure all staff are made aware on a continuous basis.
• Ensure all processes are reviewed, tested and approved.
• Communicate immediately.
• Have a communications plan ready to go.

Failure of key materials supplier to meet our requirements

Medium Low

• Have in place alternative suppliers.
• Have sufficient risk management
inventory available.

Negative market reaction to a program

High

Medium

• Test/research the market and if in doubt test
stakeholder reaction.

Organisational Structure

Organisational Chart 2013-2016

The Organisational structure available as a PDF.

Contact Details

Address
Royal Australian Mint
Denison St
Deakin ACT 2600
AUSTRALIA

Visitors are welcome between 8.30 am and 5 pm weekdays and between 10 am and 4 pm on weekends and public holidays. The Mint is closed to visitors on Good Friday and Christmas Day.

Email address
info@ramint.gov.au

Phone
Domestic (02) 6202 6900
International +61 2 6202 6900