FNSACC605 & FNSACC606: NAILSMA Organisational Improvement Report

This report provides a comprehensive analysis of NAILSMA's organisational improvement program, addressing the need to modernise technology systems and improve information sharing. It begins with an executive summary and introduction, outlining the vision, mission, and values of NAILSMA. The report then delves into the analysis and description of the current information systems, user requirements, hardware and software needs, accounting data, and security measures. It examines the strategic plan and identifies key strategic issues. The report details the elements of the improvement program, including short-term and long-term objectives for financial and resource management, using the SMART goal strategy. An external environmental analysis using PESTLE is conducted, considering political, economic, sociological, technological, legal, and environmental factors. A SWOT analysis is presented to evaluate the organisation's strengths, weaknesses, opportunities, and threats, and their financial and resource management implications. The report concludes with recommendations for improving the organisation.

FNSACC605 Implement organisational improvement
programs
FNSACC606 Conduct internal audit
Assessment 3
Written Report
Executive Summary
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NAILSMA, like other organisations, must continually address the issue of aging
technology systems and outdated approaches to providing computing resources.
Older systems can prevent the seamless sharing of information and can pose security
risks.
Our aim is to put in place the tools and systems that will:
 enable better decision making at the service and policy level
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 improve the management of and increase the security of our information and
technology
 create better value from our overall IT investment and
 develop new and improved services both for our own workforce and the NAILSMA
community that we serve.
Our approach
Vision  better information  easier engagement  contemporary technologycapable
people
Focus on priority areas
 Information and data reform
 We want data and information to be available in a way that helps us make good
decisions.
 That means information comes from trusted sources, is accessible and provides
evidence-based insights. Information should be consistent, easy to use, secure and
integrated.
Technology reform
 We want the technology systems we use to be contemporary, secure, foster
collaboration and enable data sharing.
 Standard corporate systems across NAILSMA to reduce cost, improve productivity
and streamline collaboration.
Capability uplift
 We want NAILSMA employees to understand the value of technology and be capable
in procuring contemporary systems.
 That means a strategic understanding of technology procurement, better project
management, an improved understanding of cyber security, and clearer governance.
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Table of contents
EXECUTIVE SUMMARY………………………………………………………………………………………………..2
1. Introduction……………………………………………………………………………………………………………
2. Analysis and Description…………………………………………………………………………………………..
a) The user requirements for information systems……………………………...
b) The hardware and software needs of the organisation…………………..
c) Accounting data and security……………………………………………………….
d) Policy and procedure document……………………………………………………..
l. risks faced by the organisation and the management of those
risks………………………………………………………………………………………….
ll. controls and processes for expenditure
(on capital and expense items)…………………………………………….…
lll. Compliance with legislative and statutory requirements……..
3. Report Conclusion………………………………………………………………………………………………….
4. Recommendation…………………………………………………………………………………………………..
REFERENCE…………………………………………………………………………………………………………………
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INTRODUCTION AND BACKGROUND
The Vision of NAILSMA is:
Northern Australia is a vibrant region where Indigenous traditional knowledge,
cultural values and responsibilities to the land and waters are embedded in all
environmental, economic and resource management policies and practices
(Beauchamp and et. al., 2017).
The Mission and Values Statement of NAILSMA are:
NAILSMA successfully leads innovative and sustainable land and sea management
across northern Australia. Using the strength of the alliance, it supports its members
to improve the livelihood of current and future generations of Traditional Owners
through sustainable conservation, management and development of the lands and
seas of the north.
Review Strategic Plan
The original strategic plan was completed and endorsed by the NAILSMA Board in
April 2017 and was presented to staff in November 2016.The original strategic plan
covered a five-year time frame from 2017 to 2021 but the vision achievement
window was set for a period of 10-20 years.
The review is not a new strategic plan, nor a re-write of the original strategic plan,
but rather a review as to what has already been achieved, consideration of any
changed imperatives that will affect the next two years within the original strategic
plan, and consideration of priorities for the next immediate 12 to 24 months.
As a result of the strategic initiatives completed by the company in the first three
years and the change to the environment of the company, the key strategic issues
were reviewed.
Analysis of the Information Systems
Base on the analysis and user feedback from the previous reports on constrains of
the current information systems, the weaknesses on communication within the
organisation must be improved.
In order to achieve this, the priority is to develop an organisational improvement
program to restructure its information technology systems. The Management aware
that the restructure will modernise the use of technology and processes and reduce
overheads. The functions of communication in an organization are to inform,
persuade, and motivate. Employees need to have effective organizational
communication by having accurate and correct data information in order to achieve
excellent job performance.
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ELEMENTS OF THE IMPROVEMENT PROGRAM
Since goals are defined based on business plans, it is important to provide a well-articulated,
long-term strategic business plan that includes shorter fiscal year operating plans (Bourne,
2016). The “glue” to alignment is having a business plan that is consistent with the
organization’s vision, mission, and values.
Business objectives for NAILSMA are designed to:
 Set targets for the organisation to work towards;
 Give the organisation and its employees direction;
 Motivate employees
On the two elements of the improvement program below, we are now looking:
1. To identify two short-term ( 1-5 years) and two long-term ( 5 years or greater)
objectives
 to achieve for NAILSMA with the use of a SMART goal strategy which set up for
success
 by making it specific, measurable, achievable, realistic, and timely. The SMART
method
 helps to push further, gives a sense of direction, and helps to organize and reach
goals.
 Bear in mind that a short term strategy can be developed into a long term objectives
too.
a) Improving the financial position of the organisation:
i) SHORT -TERM (1-5 YEARS)
 Secure core-funding and top up salary requirements needs for the rest of
2021 in order to improve employee’s performance 10% more.
 Prepare marketing plans/capability brochure Develop better access to data
management and information systems within a year to increase current
market share 15% more.
ii) LONG-TERM ( 5 years and over) Networking and looking for future project funding after 2025 onwards for the
betterment of brand image of the company 10% more. Planning further strategy to fund the upgrade of information technology
beyond 2025 to enhance business profitability by 20%.
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b) Improving the use of organisational resources
Highly effective organizations exhibit strengths across five areas: leadership, decision
making and structure, people, work processes and systems, and culture.
i) SHOR-TERM (1-5 YEARS) and DEVELOP INTO LONG-TERM (5 YEARSAND OVER)
Establish and implement succession planning processes to:
 Strive to secure tenure of staff contracts, to reduce employee turnover by 5% over
the financial year
 Ensure knowledge is shared and corporate knowledge is retained by providing
appropriate training to employees within one year in order to enhance business
productivity 20% more.
ii) LONG-TERM (5 years and over)
 To implement desired variations as changes in business structure to increase
revenue of firm by 15% within next 5 years. To ensure effective use of available resources within 6 years to gain the position of
market leader for enhancing its competitiveness.
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2. Impact of external factors and trends
The Macro Environment is the external environment and includes all elements that the
organisation cannot control (Härter and et. al., 2017). Let now use PESTLE to perform an
external environmental analysis by examining the many different external factors affecting
an organisation.
The six attributes of PESTLE related to impact of external factors and trends:
I. Political – The degree of government intervention in the economy like
taxation rate and expenditure. Political decisions can have an impact on
NAILSMA, if government cut expenditure there will be less opportunity for
NAILSMA to secure more projects funding. Regulation and deregulation
refers to the level of government intervention or regulation in economy
(Khan and Keung, 2016). Regulations can have severe implications for
business. Indeed the overall trend in the Australian economy is towards
deregulation, including the removal of barriers to trade such as tariffs, and a
removal of restrictions and barriers to enter markets to increase competition.
II. Economic- NAILSMA will be affected by the state of the economy and many
other key economic variables like the local, national and world economy
impact. Secure of grant funding will be affected due to the rate if the
economy is contracting, inflation, level of interest rates, unemployment, the
business cycle of recession/expansion/boom/contraction.
III. Sociological- The ways in which a society can affect NAILSMA. Different
cultures have different attitudes to work. Provide a service that becomes a
socially unacceptable for any reason could be disastrous for an organisation
like NAILSMA, so keeping track of social attitudes is crucial. Examples are:
corporate responsibility and greed that may affect the public opinion and
Social attitudes of an organisation.
IV. Technological- Technology now dominates all aspects of business operations.
In particular advances in communications systems have seen the
international marketplace develop. If NAILSMA is slow to react to new
technology, then it will generate the constraints of the current information
systems as mentioned in the previous analysis and description. This written
report is prepared to develop the improvement program to restructure its
information technology to look at the impact of emerging technologies,
impact of the internet such as reduction in communication costs and
increased remote working, online distribution, marketing and advertising,
Research & development activity and impact of technology transfer.
V. Legal- Legal factors represent those restraints placed upon an organisation by
the Australian and international legal system which includes legislation
covering employment and intellectual property law. Legal changes can affect
NAILSMA costs and demand (McLean, Antony and Dahlgaard, 2017). For
example, NAILSMA required to apply for permits to be able to conduct
research on Indigenous owner right region. Occupational Health and safety
regulations are designed to protect employees by providing safe workplaces
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like protective clothing and equipment or safe machinery/workstation, etc.
Registrations of unique designs, trademarks and designs can legally protect
VI. Environmental- The local, national and world environmental issues.
Environmental factors include the weather and climate change, and natural
disasters such as droughts floods, tsunamis, etc. Changes in temperature can
impact on many industries including farming, tourism and insurance
(Molineux, Mirshekary and Scarparo, 2015). The general move towards more
environmentally friendly products and processes is affecting demand
patterns and create opportunities.
Based on the findings of the PESTLE analysis, we are now to produce a SWOT analysis and
evaluate the organisation against its external relationships and environmental factors and
an assessment of the financial and resource management implications for the improvement
program.
SWOT is used to help focus activities into areas of strength and here the greatest of strength
and where the greatest opportunities lie. Conducting a SWOT analysis will help the
organisation to understand the strengths and weaknesses that will influence the
organisations ability to take advantage of a new opportunity. If the business doesn’t have
the capability to seize and opportunity but decides to anyway, it could be damaging or vice-
versa (Pearce, Pons and Neitzert, 2018). This analysis can be used to help decide if and how
NAILSMA restructure its information technology systems.
A financial implication can be defined as an outcome or an impact with respect to
the finances of the organisation. Whereas resource management implications are outcomes
or impact that relate to the organisation's resources.
STRENGTHS WEAKNESESS OPPORTUNITIES THREATS
- NAILSMA has a
track record of
facilitating
partners
- NAILSMA has a
strong reputation
for its work with
Indigenous people
in North Australia
in some
Government
departments
- NAILSMA is
reasonably well
recognised by
communities with
which it works
(Pinnock and et.
al., 2015).
 NAILSMA
-Lack of awareness
of who NAILSMA is
among those who
should know
-Limited resources-
money and time
-Clunky
communications
approval processes
-Too much reliance
on one or two staff
members for media
work
-Lack of
united/uniform
description of
NAILSMA for
different groups
including:
participants,
A coordinated
communications
approach will assist
NAILSMA at
corporate and
program level
-A revised
communications
staffing structure
should allow
NAILSMA to improve
communications at
corporate and
program level
-An updated,
communications
focused website will
make a difference to
explaining NAILSMA
and its work
Continued lack of
acknowledgement by
partners/Government
will undercut
NAILSMA’s fund raising
and communication
efforts
-Short term and/or
politically motivated
funding may see
NAILSMA’s reputation
damaged
-Communications team
already in overload,
danger of spreading
itself too thin
-not getting the right
communications team
together will continue
to hinder
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has
communica
tion officers
for each
program.
 Since the
company
has a
strong
rapport, it
has good
financial
implication
s which
includes
funding
that will be
required for
the
program,
reduced
overheads,
cost of
recruitment
and training
as well as
monitoring
the costs of
the
program
etc.
 This means
that a lot of
people
want to
work for
the
company,
thus it
keeps on
implementi
ng changes
in order
stay
relevant in
the market.
 The owner
partners,
government,
donors and
corporations
 The
company
does not
have a very
strong
security
control
which
means its
data is
under the
risk of
getting
stolen
which will
impact it
greatly.
 Also there
are no
security
guards or
gatekeepers
which
means
anyone can
enter the
organisation
any time.
Thus, the
organisation
is under a
high risk of
getting
affected.
- NAILSMA-through
revised
communications-can
capitalise on its work
in carbon, social and
environmental
issues
-That the process of
succession planning
includes a process of
mentorship(internal)
and cadetships
(external)
 The
respective
organisation
has various
opportunities
like
implementin
g changes
whenever
there is a
need.
 Changes
include
effective
communicati
on, providing
timely
training to
the new
hires,
developing
budgets as
well as
recruiting
new people.
-Scepticism among
some corporates
around Indigenous
organisations and
financial management
-Lack of sustainable
income-too reliant on
project funding
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of the
company
monitors all
the
activities
which
means that
there are
less
chances
that an
employee
will do
something
wrong as all
activities
are
monitored
and
tracked.
 Also, the
company
has strong
policies and
ethics
which the
employees
are
expected to
follow at all
times.
3. Review of internal control systems
In an “effective” internal control system, the following five components work to support the
achievement of an entity's mission, strategies and related business objectives.
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 Control Environment
 Risk Assessment
 Control Activities
 Information and Communication
 Monitoring Activities
Internal controls are put into place so an organization's activities, policies and plans are
efficiently integrated to best achieve business goals. Other purposes of internal control are
to protect a firm from mismanagement or fraud, to ensure the company's actions are within
the bounds of the law, and to compile financial and managerial data that can be evaluated
so that feedback can be given and implemented (Portela and et. al., 2015). Ultimately, the
information gathered will be presented to the company's directors, board and/or
shareholders.
For each component of these internal control system, we will identify one strength and one
weakness for the organisation that could impact on the improvement program as the table
below:
Component Strength Weakness
Control
Environment
This is the tone set by the board
members and management team
of NAILSMA. Managers should
have established policies, like a
code of ethics, and follow these
policies in order for employees to
take the internal controls
seriously. NAILSMA has a strong
rapport and recognised
reasonably well within the
communities it works in which act
as its strengths.
Leaders that lack a strong vision
and that are unable to properly
manage their teams will find it
difficult to achieve their goals.
Employees misuse company
resources.
Risk Assessment NAILSMA faces general financial
risks and specific risks based on
their product and industry.
Identifying risks allows the
company to create policies that
will minimize the damage of fraud
or mistakes (Reames and et. al.,
2015).
Weak security controls for hard
copy information, blank checks
and check stamping equipment
can lead to theft of information,
money or equipment. Identity
theft can result from weak
internal controls and leave the
affected employee in financial
ruin.
Control Activities Control procedures are the way
the company gains access to the
objectives of internal control.
not enforcing separation of
duties internal controls is an
open invitation to
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