Performance Management Framework Reference Guide
Value Chain and Value Model for the
Queensland Public Sector
August 2012
Version 2.1
Introduction
Purpose of this guide
The Value Chain for the Queensland Public Sector (Value Chain) shows how the public
sector organises itself to ensure it is of value to the people in Queensland. The Value Model
for the Queensland Public Sector (Value Model) provides a framework to assist employees,
clients and stakeholders of the Queensland Government and the community to understand
the connections and alignment between parts of the Queensland Government as a whole, or
between the parts of a single agency, or relationships between the parts of a unit within an
agency.
The intent of this reference guide is to:

describe the Value Chain

describe the Value Model which uses the tools of enterprise architects to describe the
components of the Value Chain

describe the various documents, frameworks, policies, etc. (known as, and referred to in
this reference guide as ‘artefacts’) that currently support the Value Model and their
alignment to the Value Model.
Intended audience
This reference guide is intended for a broad audience. It provides guidance for all
Queensland public sector staff, but is particularly relevant to:

senior executives

performance management and planning practitioners

enterprise architects.
Context
Public value thinking includes the capacity to analyse and understand the interconnections,
interdependencies and interactions between complex issues, and across multiple
boundaries. Essentially, it is about applying ‘systems thinking’ in a public sector
environment. Systems thinking is an approach to problem solving, by viewing ‘problems’ as
parts of an overall system, rather than reacting to a specific part, outcome or event, and
potentially contributing to further development of unintended consequences.
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To increase public value for its clients, stakeholders and the community, the Queensland
public sector needs to work as an integrated system. As such it is important to understand
the interconnections, interdependencies and interactions between all parts of the public
sector. The Value Chain and Value Model use enterprise architecture techniques to depict
these relationships.
Enterprise architecture (EA) is the practice of applying a comprehensive and rigorous
description of the components of an organisation including business direction, business
services, information, business processes and information and communication technology
(ICT). EA describes the terminology, composition of these components and their
relationships. The Queensland Government has developed its own EA framework called the
Queensland Government Enterprise Architecture (QGEA). It has four ‘layers’: a business
layer; an information layer; an applications layer; and an infrastructure layer. In this
architecture, the business layer includes business direction, business services, and business
processes.
The Value Chain and Value Model depict the relationships between the primary elements in
the business layer. The Value Model and Value Chain use a pictorial representation of the
Queensland public sector to describe how the public sector organises itself to ensure it is of
value to its clients, stakeholders and the community.
An EA also publishes artefacts including strategies, policies, targets and supporting
methods, tools and techniques to guide behaviour and decision-making across various
business disciplines. Types of artefacts in the Queensland public sector include policies,
frameworks, guidelines, and strategies.
Terminology
The terminology used in relation to the Value Chain and the Value Model has been defined
in the Queensland Public Sector Glossary of Terms, published by the Department of the
Premier and Cabinet (http://www.premiers.qld.gov.au/publications/categories/guides/perf-manageframework.aspx).
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Value Chain and Value Model for the Queensland Public Sector
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Value Chain for the Queensland Public
Sector
The Value Chain for the Queensland Public Sector (Value Chain) (see Figure 1) shows how
the public sector responds to the expectations and opinions of people in Queensland. The
Value Chain depicts the relationship between the external drivers of whole of government
direction and how service delivery creates value for clients, stakeholders and the community:

value for clients – direct recipients of government services will value services if they
receive a benefit, such as an entrepreneur who receives advice on establishing a
business in Queensland, a recipient of a government grant through a fair assessment
process, or a patient who receives treatment that improves their health

value for stakeholders – everyone, including clients (residents, businesses, Ministers,
service delivery agencies) will value Queensland public sector services if they perceive
that they receive a benefit from an action, service or policy of government

value for the community – some services may not benefit individuals but the community
more broadly, such as the protection of the environment.
Figure 1 - Value Chain for the Queensland Public Sector
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The Value Chain illustrates that in order to create value for clients, stakeholders and the
community, the whole of government direction and the direction of its agencies and service
delivery must be informed by client, stakeholder and community expectations and opinions,
and underpinned by appropriate governance, including performance management. Having a
clear line of sight between these elements is essential. Each element informs the next:
The expectations and opinions of clients, stakeholders and the community; political
commitments; and cross jurisdictional policies, drive . . .

whole of government direction. This direction is described in the government’s
objectives for the community (Getting Queensland Back on Track), priorities and
strategies, which in turn drive . . .

agency business direction. This is described in terms of each agency’s purpose,
vision and objectives, which in turn drive . . .

agency service delivery. Services are the products and engagements (or
interactions with clients through instances of service delivery) of an agency which
use capabilities and processes to deliver outputs, outcomes and benefits for the
agency and . . .

create value for clients, stakeholders and the community, influencing trust and
confidence.
Each component of the Value Chain has been developed with the aim of achieving a desired
outcome.
Component
Desired outcome
Client, stakeholder and
community expectations
Services are client centred and are continuously improving and reflecting
the changing needs, expectations and opinions of clients, stakeholders
and opinions
and the community.
Whole of government
direction
The Queensland Government delivers client centred ethical services.
Agency business
direction
Agencies collectively deliver the whole of government direction.
Agency service delivery
Services benefit the community; create value and influence trust and
confidence in public sector service delivery. Where there is alignment
between operational planning and setting the agency business direction,
the delivery of services should create value.
Governance (including
performance management)
Appropriate management and control mechanisms are in place to ensure
that all components of the Value Chain operate efficiently and effectively.
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Value Model for the Queensland Public
Sector
The Value Model for the Queensland Public Sector (Value Model) (see Figure 2) depicts the
Value Chain in more detail and shows the relationship between individual components.
The Queensland public sector is a large, complex and diverse organisation that manages
multiple objectives for a diverse range of client groups within the community. It can be
difficult for each individual part of the organisation to understand how their specific part of
the business relates to and affects all of the other parts. The Value Model provides a
framework to assist employees, clients and stakeholders of the Queensland public sector
and the community to understand the connections and alignment between parts of the
Queensland public sector as a whole, or between the parts of a single agency, or
relationships between the parts of a unit within an agency.
The primary reasons for the development of the Value Model were:

increasing client, stakeholder and community expectations that access to public services
will be seamless and not confusing, and will increase public value

increasing need for internal alignment between whole of government direction, agency
business direction and agency service delivery to improve the effectiveness and
efficiency of public services

the inability to describe succinctly “how everything fits together” for the whole of the
Queensland public sector, or at an agency level or at a unit level within an agency

increasing need for alignment with national performance and reporting frameworks such
as those used in the Report on Government Services and the Intergovernmental
Agreement on Federal Financial Relations

the need to improve alignment between existing public sector artefacts relating to
governance (performance management, risk management and assurance, and
compliance)

expectations of the Queensland Audit Office, Parliamentary Committees and the Council
of Australian Governments (COAG) Reform Council in relation to the objectives and
resulting outcomes of public sector service provision.
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Figure 2: Value Model for the Queensland Public Sector
The Value Model illustrates how the components of the Value Chain link together and
provides a framework for aligning how the public sector functions as a whole. This will
ensure that public servants working in policy development, service delivery, infrastructure,
ICT, and/or other areas understand conceptually all the elements needed to deliver value. It
also establishes a common language for things that public servants do that are the same
across the public sector, such as policy development, project management, risk
management and performance management.
All elements in the Value Model have been carefully defined to ensure that the meaning is
clear. These definitions are included below and are also set out in the Queensland Public
Sector Glossary of Terms (the Glossary). Note that terms in bold font indicate that these
terms are also defined in the Glossary.
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external drivers
Client, stakeholder and community expectations and opinions, political
commitments and cross jurisdictional commitments that influence the whole of
government direction.
client
Person or organisation that receives a service. Note that a client can be internal or
external to the organisation.
Synonyms include: customer, consumer, end user, resident, retailer, beneficiary and
purchaser.
stakeholder
Person or organisation that can affect, be affected by, or perceive themselves to be
affected by a decision or activity.
Stakeholders include business or the community. Note, a decision maker can be a
stakeholder. Stakeholders who are direct or potential service recipients are referred
to as clients.
community
expectations and
opinions
political
commitments
cross jurisdictional
commitments
whole of government
direction
A group of people with a commonality of association and generally defined by
location, shared experience or function.
Activities or outcomes that are expected to be delivered and beliefs that are held.
A pledge by a political party to work towards a particular outcome for its clients,
stakeholders and the community (such as, election commitments).
Agreements with other governments to deliver or work towards a particular outcome
(such as, Council of Australian Governments agreements).
The government’s objectives for the community, whole of government
priorities and whole of government strategies to address current and future
challenges for the government.
The agency business direction must align with the whole of government
direction.
government’s
objectives for the
community
The government is required to prepare and table a statement of the government’s
broad objectives for the community including details of arrangements for regular
reporting to the community about the outcomes the government has achieved
against these objectives for the community (Financial Accountability Act 2009,
section 10).
The government’s objectives for the community are outlined in Getting Queensland
Back on Track.
whole of government
priorities
Focus areas that support the whole of government direction. The whole of
government priorities are informed by the external drivers.
whole of government
strategies
Strategies which describe the way the government intends to achieve its objectives
for the community and whole of government priorities.
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agency business
direction
An agency's strategic direction that aligns with the whole of government direction.
purpose (of the agency)
A statement that specifies the overall aim of the agency. An agency articulates its
purpose in its strategic plan.
vision (of the
Indicates what the agency aspires to be by reflecting on how it wishes to be
agency)
perceived by its clients, stakeholders and the community. This statement takes
into account the current status of the agency and outlines its future direction.
agency objectives
The effects or impacts that an agency seeks to have on its clients, stakeholders
and the community. Objectives should deliver the agency business direction and
contribute to the whole of government direction, and collectively, agencies’
objectives should deliver the whole of government direction.
agency service
delivery
Agencies deliver services to clients using products, engagements, capabilities
and processes, and improve service delivery through managing projects and
programs to deliver changes.
services
The products and engagements undertaken by agencies that deliver outputs and
result in outcomes for clients, stakeholders and the community. Ideally, services
generate benefits for clients, stakeholders and the community and as a result, are
valued by them. The efficiency and effectiveness of service delivery is measured
using service standards.
products
engagements
capabilities
Tangible deliverables created for consumption by clients including stakeholders.
Interactions, connections and relationships developed between government and its
stakeholders (including clients).
Resources of an agency (including human, financial, information, physical assets
and ICT) that are used to their maximum potential for efficient and effective service
delivery.
processes
change portfolio
projects
A series of activities that utilise capabilities to deliver efficient and effective
services.
Programs and projects selected, managed and monitored to improve service
delivery.
A temporary initiative to improve service delivery. Projects that require significant
resources or involve major change should apply the Queensland Government
Project, Program and Portfolio Management Methodologies.
programs
A temporary structure created to coordinate, direct and oversee the implementation
of a set of related projects and activities in order to deliver value for the agency
and/or its stakeholders (including clients). A program produces an end-state and is
finite (albeit, often years) in duration. Guidance on program management is included
in the Queensland Government Project, Program and Portfolio Management
Methodologies.
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governance
Governance has a very broad coverage, including how an organisation is managed,
its corporate and other structures, its culture, its policies and strategies and the way it
deals with its various stakeholders. The concept encompasses the manner in which
public sector organisations acquit their responsibilities of stewardship by being
transparent, accountable and prudent in direction setting, decision making
(including investment decision making), performance management, issue and
risk management and other compliance activities, in providing advice and in
managing and delivering services, programs and projects.
The Financial and Performance Management Standard 2009 (section 7) describes
‘Governance’ as follows:
 incorporates the cultural and operational aspects of an agency that are influenced
by its actions and decisions
 includes the concepts of openness, integrity and accountability; due care; and
public defensibility
 incorporates the ethics principles for public officials under the Public Sector Ethics
Act 1994, section 4
 includes establishing a performance management system, a risk management
system and an internal control structure.
direction setting
At the whole of government level, it is the mechanism by which the government
decides on its whole of government direction through consideration of the external
drivers. The extent to which the direction is achieved is measured using the
Queensland Government Performance Management Framework. Government is
held accountable for its results by clients, stakeholders and the community.
At the agency level, it is the mechanism by which an agency decides on its agency
business direction through developing objectives which contribute to the whole of
government direction. The objectives are described in the agency’s strategic plan
and the extent to which the outcomes meet the objectives are measured using
performance indicators. Accountable officers and statutory bodies are accountable
for their agency’s performance.
At the service level, it is the mechanism by which an agency decides on its service
objectives which contribute to its agency business direction. The service
objectives are described in agency operational plans and the extent to which the
outcomes meet the service objectives are measured using service standards.
To be effective, the direction should be collectively understood by governance bodies
and ensure buy-in across the entire government or the agency through effective
communication and engagement.
investment
decision-making
performance
management
The mechanism by which, at the whole of government or agency level, capabilities
are prioritised in order to deliver services which maximise the value to clients,
stakeholders and the community.
The management and evaluation of information on the efficiency and effectiveness of
whole of government direction, agency business direction and agency service
delivery to improve accountability of government, to inform policy development and
implementation and to create value to clients, stakeholders and the community.
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performance
evaluation
issues and risks
A component of performance management that includes the systematic collection
and analysis of information to make judgements about the effectiveness, efficiency
and appropriateness of activities. Performance evaluation provides advice to the
agency to better inform its business direction and service delivery activities.
Issues: a problem, query or concern that affects the agency.
Risks: a potential event that poses a threat (or opportunity) to the agency.
compliance
value
The degree to which an agency adheres to (acts in accordance with) legislation,
regulation, policy and standards set by the government, agency or industry.
The benefits received by clients, stakeholders, the community, or the agency
from services. Value is determined by the perception of the usefulness and
importance of the benefits. Where public services are valued they will influence trust
and confidence in those services.
output
outcome

Value for clients – direct recipients of public services will value services if they
receive a benefit.

Value for stakeholders – everyone, including clients (citizens, businesses,
Ministers, service delivery agencies) will value public services if they perceive
that they receive a benefit from an action, service or policy of government.

Value for the community – some services may not benefit individuals but the
community more broadly.

Value for the agency – improvements, whether undertaken through formal
projects or through continuous improvements, which are carried out by an
agency to increase its capability to deliver benefits, creating value for the
agency.
Products and/or engagements delivered as part of a service.
The result that was generated as a result of the delivery of services. Performance
indicators measure the extent to which outcomes have achieved the agency’s
objectives.
benefit
An improvement resulting from an outcome, which is perceived as positive by a
client and/or stakeholder of the agency, or by the agency itself. The more a client
or stakeholder benefits from a service, the more it will be valued by them.
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Artefacts supporting the Value Model
Artefacts include strategies, policies, targets and supporting methods, tools and techniques
to guide behaviour and decision-making across the public sector. All current artefacts in the
Queensland public sector should be able to be mapped to the Value Model when applied at
a whole of Government or at an agency or unit level.
Some examples of the whole of Government artefacts are set out below.
Example of artefact
Value Chain component
Value Model element
Getting Queensland Back on
Whole of government direction
Government’s objectives for the
Track
Agency Planning
community
Agency business direction
Requirements
Purpose / vision / objectives of
agency
ICT Resources Strategic
Planning (Information
Standard IS2)
Queensland Government
Agency service delivery
Services
Governance
Performance management
Business Service
Classification Framework
Agency Planning
Requirements
Queensland Government
Performance Management
Framework
In the absence of the Value Model, there is currently no systematic way to identify and
classify whole of government artefacts. For example, the development of a new framework
by the Queensland Government Chief Information Office (QGCIO) under the QGEA involves
engagement with its key stakeholders - Chief Information Officers (CIOs). However, in the
absence of a register of artefacts, it is not always possible for the QGCIO to know that other
artefacts exist which affect the same element of the Value Model and as such, that there
may be a range of stakeholders in addition to CIOs who have an interest in the framework.
This is the case for all agencies that set whole of government policies.
The Value Model provides a way of systematically categorising artefacts at the whole of
government level, or at an agency or sub-agency level. The development of a public sector
artefact register at the whole of government level has commenced and will be published by
the Department of the Premier and Cabinet.
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Agencies intending to develop new or update existing artefacts which apply to more than
one agency, should review the artefact register as part of their environmental scanning
processes. Together with the Queensland Public Sector Glossary of Terms also published
by the Department of the Premier and Cabinet and the use of the QGEA classification
frameworks, this will assist in ensuring that future artefacts and the updates of current
artefacts use common definitions of terms and align to and ideally, integrate with other whole
of government artefacts.
In addition to identifying areas for improved alignment, systematically categorising the whole
of government artefacts will also identify areas of gaps and duplication. Once duplication is
identified, the relevant artefact owners can work together to align and integrate the relevant
artefacts. When gaps are identified, the Department of the Premier and Cabinet can alert
relevant stakeholders to discuss and determine the priority of addressing the gap.
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Acknowledgements in relation to the development of the Value Chain
and Value Model
The Value Chain was informed by performance management frameworks and better
practices of other jurisdictions including the US Government’s Performance Reference
Model and the Public Sector Service Value Chain developed by Heintzman and Marson.
The Value Model has been developed through a collegiate effort between officers of the
Department of the Premier and Cabinet (Performance Unit - Judy Dudurovic, Mandy
Scanlon, Nicole Tabb, Ester Slee), the former Department of Public Works (Public Sector
Development Office - Shane Marshall; ICT Policy and Coordination Office - Vanessa
Douglas-Savage, Ee-Kuan Low and Chris Goh; Queensland Government Chief Procurement
Office – Amanda Clatworthy), and the former Department of Employment, Economic
Development and Innovation (Sally Hall). The Value Model has also been refined through
discussions with officers across a range of agencies and in particular through their
willingness to test the usefulness of the model by applying it to specific units and projects.
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