Board outcomeBudget, Strategy and Resource Realignment

We need a significant

realignment of our work and to

efficiently find ways to fulfil our

mission and strategy.

This includes a need to realign

our resources, including people,

in line with our revised strategy

and approach.

Our objective

Professor Garry JenningsInterim CEO

Since 25 August we have been on a journey

Organisational Architecture Framework

Value delivery(Customers, service offering, value proposition & brand)

Financial Model (Profitability, investments, finances)

PurposeVision

Strategy

Capability and Capacity(Skills , knowledge,

attributes & staffing levels)

Culture(Mindsets & behaviour)

External Alliances (Delivery partners &

champions)

Governance and structure (Roles &

accountabilities)

Business processes (Customer facing &

internal)

Business intelligence Technology

Physical and intangible

assets

Why we exist and the choices made to enable this

How value is delivered

The core enablers to achieve success

How financial performance is determined

The people elements that drive results

How did we get here… ? We asked and listened…

Inputs & consultation

Informed by• Staff input• Strategy• Guiding Principles• Focus Groups• Internal SME advice• Financial modelling and

ongoing cost analysis• Group CEO and Board

inputs• Combined local CEO’s

recommendations report • Specific functional

leadership input • EG and LG inputs• Operational Plans• Organisational Charts• Deloitte consultations and

principles 2017

Decision making criteria & conceptual

design

Informed by• Working Group• P&C• The Adapt Group

Conceptual design pressure tested

refined, confirmed

Informed by

• Internal SME’s & leaders

• Working Group

• CEO

• Executive Group

• Leadership Group

• Financial modelling

Current actions

Organisational structure conceptualised, tested & refined• CEO• CFO/COO• GM P&C• Working Group• SME’s

Recommended conceptual

framework for board approval

Informed by• CEO• Supported by

CFO/COO/GM P&C

Communications, Planning & Support - GM P&C, supported by CEO and CFO/COO, Internal Communications & Working Group

Operating Model Design Principles

*Adapted from Deloitte Consultation 2017

What was the consultation process?

Draft conceptual structure

LAB / LG / EG / CEO feedback

Financial budgeting &

modellingRecommended

Structure Options Board Paper

• Informed by significant consultation, research and review

• Guided by the Operating Model Design Principles and Decision Making Framework

• Supported by in-depth financial modelling and activity ROI analysis

• Post presentation on Conceptual Structure, Guiding Principles and Decision points.

• Various emails and Zoom consults to gather feedback, to ask and respond to questions

• Feedback collated with commonalit ies identified.

• Finance and Leadership working through programs and budgets to identify relevant savings.

• Financial modelling input to Board paper.

• Reworked conceptual structure in response to feedback.

• Tested options against the agreed framework -design principles and decision points.

• Provided high level options and rationale for CEO consideration.

• Progress update, business case rationale and high level recommendations inputted to the Board paper.

• Note this is conceptual structure, not fleshed out department / team roles.

Multiple streams of work occurring simultaneously in this phase

Inputs & consultation

• Staff input• Strategy• Guiding Principles• Focus Groups• Internal SME advice• Financial modelling and

ongoing cost analysis

• Group CEO and Board inputs• Combined local CEO’s

recommendations report • Specific functional leadership

input • EG and LG inputs• Operational Plans

• Organisational Charts• Deloitte consultations and

principles 2017

Decision Making FrameworkCore business only

• Is the activity / program / function core business for the heart foundation?

• We question and challenge what we do

• Identify potential partnership organisations for valuable but non-core business.

Financially viable and evaluated

• Evidence-based financial analysis.

• No assumptions on cost savings (e.g.Assuming digitizing a project will cost less).

• Positions and structures must be able to evidence a return on investment (ROI), relating to financial return, health return, reputational impact and/or management

of risk, depending on the function / role purpose.

Clearly support the strategy

• Provides clear and direct links to existing strategy.

• Supports current and future capability needs.

Informed by SME’s

• Expert input to deciding roles.

• Connecting to knowledgeable stakeholders

• Robust assessment / evaluation by the right SME’ s

Enables effective ways of working

• Prioritise decisions to establish and maintain a minimum viable FTE per location

• Avoid ‘ single point sensitivity’

• Informs culture, engagement and health & safety.

Manages or mitigates risk

• Governance

• Compliance

• Reputation

• Workplace relations

• Retention

• Culture

Is scalable and replicable

• Consider efficiencies, future growth and needs

What does this mean for the Heart Foundation?

Our situationCurrent vs future financials

• We have heard from the CEO and the Board that our current operations are not financially sustainable

• Our annual revenue is $50M and forecast expenditure is $67.1M. To be sustainable –these must align

• There is a need to reduce costs across all areas to achieve a balanced budget by 2022.

• This requires $17M in savings to expenditure by December 2022

Our vision, mission and purpose remain unchanged. Our work and resources will be realigned to achieve the Connecting Hearts 2023 strategy more efficiently.

The focus will remain on heart health promotion and research.

Where possible, activities and programs will move towards more efficient delivery models including online to maximise impact and ROI across our community.

Where appropriate, partnerships will be further leveraged and, in some areas, activities will be ceased.

Costs will reduce significantly to deliver a break-even budget and $17 million more favourable result compared to current forecasts for FY2021.

Our future focus

Changes to Heart Health Activities

Heart Health

Research Reduce investment in Research funding from $60 million to $50

Risk Reduction Continue Heart Health Checks promotions (Toolkit, Recall program and Heart Age Calculator) – predominantly digital

Cease development/establishment of business case for national CVD screening program

Support and CareContinue with My Heart My Life – Reshape offerings to predominantly digital delivery

Review viability of Helpline

Heart Healthy Lifestyle

Continue with digital Walking and Nutrition plans (e.g. personalised walking plans, recipes and meal plan journey)

Continue externally funded walking groups – review in 2022

Finalise HeartFoods business case (cease additional investment in establishment of business case).

Review viability of FoodTrack program

How will this impact the way our organisation will work?

• Our focus is to improve the way we work together, adopting a leaner, focussed and integrated approach, to deliver our national strategy.

• With heart health activities at the centre of what we do, our operational pillars will support our vision and mission.

• Our supporting pillars will leverage our knowledge, influence and relationships, to increase our sustainability, reputation and legacy for the future.

• We are committed to maintaining a local presence across Australia with a national focus on program deliverables.

Office of the CEO

CEOBoard SecretariatGeneral Counsel

Chief Medical Advisor

Revenue Optimisation

These functions exist to generate revenue through commercial opportunities and growth of a sustainable network of Heart

Foundations supporters. Thus enabling the long term operation of the Heart Foundation and ensure

delivery of our work.

External facing, these functions exist to maintain and further develop an

influential position and strategic relationships on the national and local stage with respect to policy and key

external heart health decision makers

Strategic Relationship Management

Heart Health

Health is at the core of the Heart Foundation.

This function drives innovation, evidence based knowledge and

programs to support positive health outcomes. Heart Health is integral to

the Heart Foundation being the trusted credible voice necessary for relationships and revenue.

Business Services and Operations

These functions exist to serve the entirety of the organisation, to protect

the organisation from risk and to provide service delivery to achieve the

overall success of the organisation.

• Bequests• Philanthropy• Individual Giving• Corporate Partnerships• Community Programs

• Partnership development (external facing e.g. institutions, foundations etc)

• Local Engagement• Local Advisory Boards (LABS)• Advocacy & Grants

• Research Program• Risk Reduction• Support & Care• Evidence

• Finance • Legal / Risk & Governance• P & C • Marketing, Comms & Media • Data & Technology• Strategy (internal facing)• Insights• Facilities / Procurement

Conceptual Structure

How will this impact our structure?

• There will be a reduction of duplication and

activities as we stop activities and programs

of work that do not serve our core purpose or

are not feasible in terms of delivering value for

money.

• There will be a need for redundancies,

attrition or redeployment across our

organisation, as we ensure that our workforce

is the right size and have the right skills to

deliver our strategy moving forward.

• We will work with leaders to define roles and responsibilities:

• Some roles will merge gaining synergies in skills, focus and deliverables, particularly in localised operations.

• New opportunities will be created and opportunities for redeployment will be identified.

• To meet the challenges set by the Board, a *35% reduction in staffing levels to our current FTE is required, forecast across both teams and location. Some of these reductions will met through the Voluntary Redundancy process, others by attrition, merged roles and by filling externally funded vacancies internally.

*indicative, based on current financial modelling

How will this impact our structure?

How will this impact our structure?

• There is a strong emphasis on centralisation, to

enable efficiency and consistency, which is

combined with a smaller local presence to

enable tailoring to the State/Territory

jurisdictional requirements.

• To ensure a truly national presence, where

practicable, senior leadership positions will be

based in any major capital cities. Subject to

job-sizing, these roles, will also play a vital role

in the local jurisdiction, including liaison with

Local Advisory Boards.

Voluntary redundancies

• We are currently working to confirm our organisational structure to

inform our ability to accept submitted Expressions of Interest for

Voluntary Redundancy.

• We will approve Expressions of Interest wherever possible. If your

position is one that is business critical and will be needed into the

future, we may not be able to approve your Expression of Interest.

• During the week commencing 4 October, we will communicate

Voluntary Redundancy outcomes with applicants.

• If your expression of interest is accepted, your finish date will be

agreed with your People Leader , considering both the need of the

organisation and your personal circumstances.

Next Steps and Timeline

W/C 4th Oct 2021

W/C 27th

Sept 2021W/C 11th

Oct 2021 Nov 2021 Dec 2021

Board reviews proposal and implementation plan

Cascade CEO Briefings1. LG Meeting2. People Leaders3. All team

Structure department role level phase 1 – working meetings 26th Sept – 6th Oct

Commence communication of structural changes and commence implementation of detailed planning

LG meeting to walk through the structure complete with roles

From this week - commence communication with impacted individuals, explore redeployments

From this week - share with Heart Foundation team new role opportunities and final structure.

Continue communication with impacted individuals and broader organisation

Appointments and redeployments

Commence transition to new structure

All notifications of redundancy to be completed by end 1st week December (Friday 3rd)

Finance adjustments of severances up to 31st December

Structure department team level phase 2 - working meetings 4th - 11th Oct

Detailed planning for change process continues

Communicate Voluntary Redundancy outcomes with applicants

Transitioning through change

The change and transition journey is hard and we will all experience it differently.

Much of the speed of transition will depend on an individual's self perception, locus of control, and other past experiences, and how these all combine to create their anticipation of future events.

The more positive you see the outcome, the more control you have (or believe you have) over both the process and the final result the less difficult and negative a journey you have. John Fisher, Process of Personal Transition, 2012.

Transitioning through change

• Accept that we are still working through this change and that currently not all questions will have a definitive answer

• Understand that nothing has been set in stone and that the realignment team are working to understand and enable the best solutions for the Heart Foundation moving forward

• Ask Questions by emailing people@heartfoundation.org.au

• Set realistic expectations about timelines and processes for the next few weeks

• Be kind - to yourself and others. There’s a lot going on for all of us right now, kindness goes a long way to maintaining our wellbeing and relationships.

Discussion and consultation

Questions?