Assessment of the use of a training program

The Department of Finance, Services and Innovation (DFSI) and Service NSW's use of Franklin Covey's '7 Habits' program (the Program) met identified business needs according to a report released today by the Auditor-General for New South Wales Margaret Crawford.

‘Both agencies negotiated value for money contracts for the delivery of the Program when compared to other available options for training all staff’, said Ms Crawford.

‘However, the agencies did not document evidence to show that training all staff members was necessary to meet their business needs, as compared with training fewer staff members at a lower overall cost. As a result, we are unable to form a view on whether the approach to train all staff members was economical’.

The agencies are collecting the data they need to evaluate the Program and there is some evidence that the Program is achieving its objectives in Service NSW. DFSI introduced the Program after Service NSW and does not yet have enough information about the Program’s achievements.

The Department is paying $1,320,700, over three years, for up to 5,600 staff to participate in the Program ($235.84 per person). Service NSW is paying $595,000, over two years, for up to 2,400 staff to participate in the Program ($247.92 per person).

Both agencies procured the Program through direct negotiation, as opposed to a competitive tender process. The audit recommends that DFSI improve the guidance it provides to NSW Government agencies engaging in direct procurement negotiations.

This audit responded to a request from the Hon. Victor Dominello MP, Minister for Finance, Services and Property to assess the effectiveness and economy of the Department of Finance, Services and Innovation's, including Service NSW's, use of the Franklin Covey ‘7 Habits’ program.

Further information

Barry Underwood, Director, Office of the Auditor-General, on 9275 7220 or 0403 073 664 and email