When is APS work ‘core’ work?
It sounds so simple, especially when we all think we have a good idea of what ‘core APS work’ is. I wanted to check my thinking, so I went looking for a simple list, maybe two distinct columns, showing what is to be done in-house, and what can be commissioned from external suppliers.
It turns out that it’s not as simple as I expected.
My search started with the APS Strategic Commissioning Framework, released in 2023 to guide agencies as they implement the government’s commitment to reducing inappropriate outsourcing and strengthening APS capability.
The framework makes clear statements about APS-wide core work, as follows:
APS-wide, there are core tasks and functions that must be done by the APS and must not be outsourced to an external workforce. These include:
developing cabinet submissions, once they are in a cabinet-classified environment
drafting cabinet submission recommendations at any stage of policy development
drafting legislation and regulation
leading policy formulation
roles that are on an agency’s executive team.
Other core APS functions should be brought back in-house as a priority, noting arrangements may take time to adjust. These include:
undertaking procurement and managing contracts
undertaking standard cost/benefit analysis — external site (excluding major capital, infrastructure, complex IT and secure assets such as defence)
delivering programs and managing grants.
Noted: this is a very clear list.
However, considering the many different types of work APS employees perform, it is also quite a short list. This is where the definition of core work can vary, from agency to agency, depending on what they do. All decisions regarding what is agency-specific ‘core work’ outside of that described above, need to be made by the agency.
As an owner and partner in a consulting firm, the support and service we offer don’t fall into these categories of work, but we always need to check this, and we can see where and how the lines could be blurred depending on which department you are working in.
Through our engagement with government clients at all levels and across multiple types of work, we can see some easy pitfalls that might undermine the government’s drive to develop that core APS capability within each agency. Here we translate the pitfalls into actions agencies can take or key points they may need to consider when determining what core work is for them:
1. Strategically identify what your core work is, and create your first column
When you are under pressure to get an initiative or project moving, as a Branch particularly, it can be very easy to focus on your own project’s capability needs, which may sit well beyond your local team’s areas of expertise. We would not expect a branch focused on data analysis to lead an organisational design, manage a suite of changes unsupported, or identify and initiate actions towards their ideal culture — but what type of organisation are you strategically, and how does your initiative fit in with the wider organisation’s strategy and objectives?
However, if you work within a data analysis branch within a large organisation, that has a strategic transformation agenda, regularly restructures, has widespread culture challenges, or needs to manage ongoing changes, then these may well be considered core skills and work for the organisation, and the onus could be seen to be on your Branch to support your agency in developing this internal capability.
If everyone approaches it strategically, and together you identify and support the development of capabilities to deliver tasks and activities that are consistently required over time, then as the emerging core capability grows, expands, and becomes normal practice, your workforce alignment to strategy improves and you set yourselves on the right path to building the core-work capability for your specific agency.
It will take time. But so does not doing it.
Aligning your understanding of core work with your business plan and 3-5 year strategy is key to ensuring you are able to establish, grow and maintain a workforce that will deliver for you now and in the future.
2. Build that core work capability for, or across the organisation
Once you are clear on what your agency-specific core work is, derived from your organisation’s strategy, then it’s easier to confidently justify, and invest in building that capability.
This is likely to take the form of either a centralised, enabling team — or renewed focus on the identified core skills in organisational training. My guess is it will need a formal strategy that is reported on regularly.
Once your agency is clear on the core work capabilities you are seeking to build, be clear with all contractors and consultants that support you in the interim, that capability transfer is an important part of their contracts. Most of us want to support the transition to in-house capability — because we know you can still seek support for the non-core, second-column work.
3. Be clear on what is not core work, and create the second column
It would be helpful for all managers to have this non-core-work list, specific to your agency, so they can confidently approach the market when they need to, without second guessing themselves or their authority to do so.
This non-core work is likely to be a short-term need to supplement existing capability, or a one-off longer-term need, or a need where you have internal capability, but the situation demands a higher level of expertise not usually required — then call in the support.
It could also be support to perform your core work — while you focus on that, your external team can support you with the project, stakeholder, communication, or change management. They can also design and facilitate the workshops you need to bring all the voices together. Complementary support for your core work enables internal experts to focus on content and core delivery and is likely to accelerate delivery.
4. Communicate to set expectations
Defining core and non-core work may already be well underway in your agency and well-understood by those driving workforce planning initiatives. As with everything, making sure everyone understands organisational expectations of them, and how they will contribute to the core-work capability-building process, is critical for success.
The dual goals of developing the core-skilled workforce that you want and need while also drawing on external support when it’s non-core and more efficient or effective are underpinned by that clear understanding of what goes into column 1 and column 2.
5. Approach the market with confidence
There’s still APS caution around approaching the market for support, which is why a clear understanding of what is allowable for your agency would be helpful.
There is also an encouragement to approach the market — and especially the SME market which is more likely to be Australian-owned, as detailed in Katy Gallagher’s recent announcement that includes the go-ahead for departments and agencies to sole source from SMEs up to the value of $500,000.
In conclusion, it will probably take a while for agencies to be clear on their two columns of what is and what is not core work for each specific department — beyond those clearly stated in the APS Strategic Commissioning Framework, and listed above.
However, it’s helpful to remember that when you go to market, the power is always in the buyer’s hands, and suppliers will work with you to shape the way they support you to get the best outcomes for your department.
