VENUESWEST

BUSINESS PLAN 2019-20 SUPPORTING OUR STRATEGIC PLAN 2016-2021:

BIGGER THAN OUR BUILDINGS FURTHER THAN THE FINISH LINE

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PRIORITIES FOR 2019-20

The breadth of VenuesWest’s portfolio of assets and its events, programs and services results in a high level of day-to-day activity. To reach our objectives, we will focus on the

projects that provide maximum benefit. The organisational priorities for 2019-20 are:

To understand the condition of assets and fix priority safety and security items

To embed safety into our culture and practices

Digital Transformation delivers a new Financial Management System (FMS) and B2C solution

Determine the long-term future of venues and precincts (focus on SpeedDome and HBF Arena)

Transition a fully operational Motorplex to a new owner/operator

SCORECARD MEASURES

At the macro level, the Board and Executive will assess the performance of the organisation against the Scorecard on a quarterly basis. The Business Plan includes specific success

measures against each initiative which are aligned to the scorecard below.

Customer

Measure Description 2018-19 YTD (up to Q3) 2019-20 Notes

Target Actual Target

Patronage Patronage for our portfolio of venues 3,654,204 4,521,360 5.8m As per budget papers

Elite training and competition hours

Number of hours of elite training and competition for our portfolio of venues 13,523 14,987* 31,000

Figure is greater than STLY with Optus minus HBF Arena Swim Club hours.

*YTD figure does not include WAIS HPSS hours, which are added at EOFY.

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Customer Satisfaction Customer satisfaction by venue and customer type, measured through our customer satisfaction research

88% 92% 90% As per budget papers

Stakeholder Satisfaction Stakeholder satisfaction, measured through our stakeholder satisfaction research

75% 78% TBC Previous measure deleted. Transition to a new framework to measure and monitor

stakeholder sentiment.

World Class Sporting Facilities

The facilities that meet international competition performance requirements that are specified by the official governing body of our targeted sports.

89% 83% 89% Includes SpeedDome in compliance.

Financial

Measure Description 2018-19 YTD (up to Q3) 2019-20 Notes

Target Actual Target

Tickets Sold

Self and Co-managed venues 322,250 370,057 380,842 Based on budgeted events at HBF Park,

HBF Stadium, HBF Arena, Perth Motorplex, and Bendat Basketball Centre

Partner Managed 1,538,533 1,852,135 2,458,602 Based on partners’ Business Plans –

1,752,012 for Optus Stadium and 706,590 for RAC Arena

Avg. Spend per patron Total revenue divided by patronage for Self-managed and Co-managed venues, with an overall average for these venues

$9.46 $8.24 $8.15 Set by Finance as per budget – budget

still to be finalised / approved.

Avg. Cost per patron Total operating cost divided by patronage for Self-managed and Co-managed venues, with an overall average for these venues

$10.98 $9.04 $9.59 Set by Finance as per budget – budget

still to be finalised / approved.

Total revenue to operating expenses

The proportion of operating expenses that are covered by revenue. This includes Partner-managed venues and corporate overheads

73% 76% 87% Set by Finance as per State budget.

This measure includes interest payments.

VenuesWest subsidy to high performance sport training and competition

Percentage of high-performance training and competition costs covered by VenuesWest

- - 72%

New KPI measure. Target as per the State Budget Papers.

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Internal Business Process

Measure Description 2018-19 YTD (up to Q3) 2019-20 Notes

Target Actual Target

Safety

Safety training - Safety induction within two weeks for new starters - Refresher training within four weeks of due date for current

employees

- - 100% New measure

Percentage of Hazards resolved in 30 days - - 80% New measure.

Lost Time Injuries Primary 0 0 0

Secondary 1.37 1.20* 1.19 *Annual target (1.37) exceeded in early

Q4.

Employee Expense Ratio Salary and employee expenses ($) / total operating revenue ≤34% 33% 34% Set by Finance as per budget.

SAM Plan Capital Program progress

The percentage of capital budget that has been committed 84% 64% TBC

Measures to be reviewed – proposing one new measure of effectiveness or

efficiency, number of completed projects. PM to confirm targets once SAM Plan

program finalised.

The number of projects completed - - TBC *New measure

Learning and Growth

Measure Description 2018-19 YTD (up to Q3) 2019-20 Notes Target Actual Target

World Class Events

Sport Number of world class sports and entertainment events held at our venues World class entertainment = national or international tours (COO can make exceptions for one-off shows of note)

57 78 110 As per VL, AEG Ogden and VM business plans. Entertainment 43 44 76

Net culture score Net Culture Score from Pulse survey (three times per year) 75% 80% 75% Survey to remain in place with one new

signature behaviour on safety.

Training budget expended The percentage of training and development budget that has been spent on employee development

80% 35% 100% Quals that are current, core competency

training, Training targets for Digital Transformation

Learning per employee Minimum of one specific learning and development activity per employee (on top of the four core compliancy requirements)

>10.5 13.4 One per

employee

New innovations New services or products. Improvements that increase revenue or reduce costs by >$50K (or 10% of budget).

3 7 8 2 new innovations per quarter

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BUSINESS PLAN INITIATIVES

Strategic Objective 1. Deliver Outstanding Customer Experiences

No. Operational Initiative Success Measure Lead Expected work undertaken

Q1 Q2 Q3 Q4

1.1 Consistently implement outstanding customer service practices across all venues

1.1.1

Deliver customer-based initiatives in line with the Customer Service Framework.

Customer satisfaction averages of 90% and over by venue.

VM ● ●

1.1.2 Launch a new flexible entertainment mode at HBF Stadium.

One entertainment event using the new mode successfully delivered.

VM ●

1.3 Enhance customer experience through the use of technology

1.3.1 Work collaboratively with customer facing areas to identify and map customer journeys to ensure all touchpoints consider automation and value-add activities.

Key end-to-end journeys are mapped. Improved efficiencies through redesigned process and targeted activities.

S&P ● ●

1.3.2 Realise the benefits of the Sales Cloud system to achieve a 360-degree view of the customers and stakeholders and report benefits.

High adoption rate of Sales Cloud by users. Benefits realised and improved stakeholder sentiment.

S&P ● ● ● ●

1.3.3 Realise the benefits of Marketing Automation (MA) to increase conversions and engagement.

All Marketing staff trained and using the system. MA implemented and monitored for all H&F journeys. Swim School customer journeys developed.

S&P ● ● ● ●

1.3.4 Ensure the customers touchpoints are considered in the development and implementation of FMS and B2C.

Marketing represented on the FMS and B2C projects. Customer interfaces are identified and developed e.g. Websites for self-serve, online payments, enrolment and access to accounts details.

S&P ● ●

1.3.5 Research and scope the future role of Wi-Fi in our venues. Recommendations approved and a plan in place for implementation next year.

CS ● ●

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1.4 Work with stakeholders to optimise our customer experiences

1.4.1 Work together with VenuesLive to ensure Optus Stadium delivers a successful year.

Relationship with VenuesLive is positive. VenuesLive performance meets key targets. Regular (monthly and quarterly) performance reviews are conducted and include a focus on safety.

S&P ● ● ● ●

1.5 Seek and act on feedback to understand our customers and continuously improve offerings

1.5.1 Use stakeholder feedback to identify improvements in the capital works and facilities maintenance programs.

Project commencement and close out process developed and implemented. Feedback forms sent on close out and reviewed for improvements.

PM ● ● ● ●

1.5.2 Seek customer feedback through Sales Cloud to identify and facilitate continuous improvement.

New methodology for tracking stakeholder sentiment adopted and monitored quarterly.

S&P ● ●

1.5.3 Identify and meet with key stakeholders on a regular basis.

Interactions captured in SalesCloud. Stakeholder sentiment improves through the year.

VM ● ● ● ●

Strategic Objective 2. Ensure our portfolio of sport and entertainment venues are fit for purpose

No. Operational Initiative Success Measure Lead Expected work undertaken

Q1 Q2 Q3 Q4

2.1 Ensure our venues are safe and well maintained

2.1.1

Understand the condition of our venues and ensure they are safe.

Condition audits and 20-year restorative maintenance forecasts delivered. Critical safety items are rectified.

PM ● ● ● ●

2.1.2

Deliver the security infrastructure program of works. Funded projects are delivered. PM ● ●

2.1.3

On-site contractors are effectively managed to ensure works are safe and completed to a high standard.

Site-specific safety risks provided to contractors. Contractors have addressed site specific safety risks and hazards in their workplans. Contractor works are monitored for safety and quality.

PM ● ● ● ●

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2.1.4

Ensure our venues are well presented.

Key performance measures and regular reviews incorporated in new cleaning contract. 80% customer satisfaction in cleaning.

VM ● ● ●

2.1.5

Review and improve the contract management of cleaning providers.

Contract is actively managed and monitored. Supporting procedures are in place. Internal client satisfaction survey completed and improves 10% over the year.

VM ● ● ● ●

2.1.6

Undertake quarterly site inspections focused on safety, with two checks to be done by personnel external to the venue.

Two checks by internal staff and two checks by external staff completed with items actioned against set priorities.

VM ● ● ● ●

2.1.7

Ensure relevant safety terms and conditions are included in all contracts.

Buyer/Contract Manager provided with improved safety terms and conditions for all procurement.

S&P ● ● ● ●

2.1.8

Review and update Venue Emergency Plans, Risk Management, Security Management Plans and Event Risk Plans for all self-managed venues.

Venue Management Plans are updated and tested. VM ●

2.1.9

Conduct safety review of all Chlorine Gas procedures and implement any recommendations arising.

100% of all aquatic supervisors are inducted in new safe working procedures and attain 100% compliance in spot checks.

VM ● ●

2.2 Develop our venues to meet world class (national and international) standards

2.2.1 Ensure resources and funds are in place to complete the outstanding projects in the Optus Stadium precinct.

90% of outstanding D&C Phase legacy projects (as approved by ERC) are completed.

S&P ● ● ● ●

2.3 Work collaboratively with strategic partners to implement a long-term investment strategy

2.3.1 Monitor utilities usage and pursue opportunities to reduce energy costs and resources.

Meters installed to recoup consumption from tenants. Building Management Systems utilised to identify further saving opportunities.

PM ● ● ● ●

2.3.2

Provide governance and ministerial liaison to enable achievement and support from our key stakeholders on the results of the condition reports and venue and precinct plans.

Minister and key Government stakeholders are aware of VenuesWest asset reports and long-term venue and precinct plans. Funding is obtained to fix safety items.

S&P ● ● ● ●

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2.3.3 Manage and monitor Project Co’s performance to ensure the venue is fit for purpose to accommodate world class sport and entertainment events.

Relationship with Project Co is positive. Project Co’s performance meets key targets. Monthly performance reviews are conducted and include a focus on safety.

S&P ● ● ● ●

2.4 Right management model for the right venue at the right time

2.4.1

Determine and deliver a solution for the future of Motorplex including any contracts or service models.

Motorplex is sold/leased and/ or transitioned to another management model.

VM ● ● ●

2.4.2

Facilitate an effective transition to the future owner/operator of Motorplex.

Transition plan in place and obligations completed. Transition is successful.

VM ● ●

2.4.3

Determine the long-term future of venues and precincts.

Research and assessment of venues completed. Master Plans in place for key venues.

S&P ● ● ● ●

2.4.4 Review management and service delivery models for venues.

Co-management agreement at SNC reviewed. Approach moving forward for the venue agreed.

S&P ● ●

2.4.5 Establish supplier panels for maintenance services and streamline arrangements, where multiple service providers exist and with proprietary products.

Supplier panels are established and deliver quality, value for money and timely services.

PM ● ● ●

2.5 Invest in our venues to make them accessible and cost competitive

2.5.1 Confirm audio solution for HBF Stadium. Solution implemented and sound quality improved. VM ●

2.5.2 Implement maintenance and capital works to facilitate commercial success.

Negotiated scope and timelines for projects developed in consultation with venue managers. Relationship between venue management and portfolio management teams is positive.

PM ● ● ● ●

Strategic Objective 3. Engage a workforce that is aligned, highly capable and adaptable

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No. Operational Initiative Success Measure Lead Expected work undertaken

Q1 Q2 Q3 Q4

3.1 Attract and retain high quality people

3.1.1

Deliver Year 2 of the Workforce and Diversity Plan with a focus on safety and diversity.

Priorities agreed with Executive and plan implemented accordingly.

CS ● ● ● ●

3.1.2 Ensure people and industrial relations impacts of the sale of Motorplex are understood and managed.

Needs identified and plan in place to manage transition of staff.

CS ● ●

3.2 Staff are aligned and work together to achieve organisational priorities

3.2.1 Deliver Phase 2 of the VenuesWest Culture program with a focus on continuous improvement and collective achievement.

AIMS process implemented and every cluster delivering improvements across the organisation. Green Net Culture Score maintained above 70%. Transitioned to self-maintenance platform.

CS ● ● ● ●

3.2.2 Deliver the initiatives outlined in our Reflect Reconciliation Action Plan (RAP).

Initiatives within the plan are completed. Success is celebrated.

CS ● ● ● ●

3.2.3

Embed safety in the culture program.

Safety behaviour is rolled out and measure improves over survey periods.

CS ● ●

3.2.4

Outline and agree a 12-month framework to review and prioritise improvements in safety culture, practice and process across VenuesWest.

Framework is agreed by 31 July 2019. Priorities allocated for action.

CS ●

3.2.5 Review employee recognition awards in line with the VenuesWest Way and safety focus.

Awards aligned with increased collective recognition. Annual award for safety behaviour, improvement or project implemented.

S&P

CS ●

3.2.6

Develop a Hazard Management Framework with supporting procedures and training.

Hazards identified and effectively controlled. TAKE 5 application implemented.

CS ●

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3.2.7

Revised safety induction to occur annually including:

• immediate online induction (new employee).

• face to face induction.

• annual safety refresher learning.

All new staff receive a safety induction. Existing staff completed annual refresher training.

CS ● ● ●

3.2.8

Contract Management Framework includes safety compliance and benchmarks for contractor performance.

Contract Management Framework in place. Contract specific safety requirements and benchmarks are included and monitored.

S&P ●

3.2.9

Commence recognised safety management system audit process for VenuesWest.

Accreditation received by end of Q4. CS ● ●

3.2.10

Develop a Permit to Work Framework.

Framework developed and rolled out across the organisation.

CS ●

3.2.11

Develop a Facilities Management model and structure that delivers safe and well-maintained assets.

Model delivers streamlined and efficient processes. Positions are aligned with delivery of the new model. The review and restructure are effectively managed to ensure limited impact on operations.

PM ● ● ● ●

3.2.12 Ensure our organisation creates a more inclusive community that supports people with disability to achieve their full potential.

A Disability Access and Inclusion Plan (DAIP) is developed, endorsed and implemented.

S&P ● ●

3.2.13

Develop standard and automated reports from the new systems to provide insights on the organisation’s performance.

Performance reports are accurate and available to decision makers in a timely manner.

S&P ● ●

3.2.14 Implement a revised industry best practice program. Program inclusive to all VenuesWest and participants share learnings.

VM ● ● ●

3.2.15 Develop staff by cross training roles across venues.

Four internal transfers within Venue Management identified and exercised.

VM ● ●

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3.3 Invest in staff induction and development

3.3.1

Scope, design and deliver organisational wide learning and development framework that supports safety and digital transformation.

Learning pathways are identified. L&D focus areas agreed and key initiatives delivered.

CS ● ●

3.3.2

Implement a new induction/onboarding process utilising the Learning Management System (LMS) platform.

100% completion of the onboarding learning path by new employees.

CS ● ● ● ●

3.3.3

Implement a Cybersecurity Awareness Program.

All staff complete one module per quarter. Reduction in cyber security incidents.

CS ● ●

3.4 Increase capability and responsiveness through improved business systems

3.4.1

Map and reengineer business processes to deliver improved capacity and productivity savings.

Priority processes for reengineering mapped. Improved efficiencies realised through redesigned processes.

CS ● ● ● ●

3.4.2

Rollout the audit module in CAMMS to improve oversight and management of actions.

All relevant employees use the module to manage and monitor audit recommendations.

CS ●

3.4.3

Procure and implement a new finance system that meets business needs and interfaces with other systems.

New system in place by May 2020. Relevant employees trained.

CS ● ● ● ●

3.4.4

Transition identified services to GovNext:

• WAN and LAN services

• IP Telephony

• Data Centre decommissioned

All venues transitioned to GovNext. CS ● ●

3.4.5 Deliver an automated employee offboarding process. Improvement in audit findings regarding exiting employees.

CS ●

3.4.6 ICT and Systems support in place to ensure the effective implementation of the Digital Transformation Program.

Appropriate ICT support in place for the new systems. CS ● ● ● ●

3.4.7

Improved asset data enables proactive maintenance.

MEX data is standardised and complete. Condition reports complete the data required for future planning.

PM ● ● ●

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3.4.8 The WASCT Act changes deliver the right framework and improvements to VenuesWest’s operations.

Draft amendment Bill prepared and listed for consideration.

S&P ●

●

3.4.9

Digital Transformation projects of 2018-19 transition to business as usual, i.e.. Master Data Management (MDM), Sales Cloud, Marketing Cloud, and Ungerboeck.

New system implemented and adoption/satisfaction is high. Targeted training provided and new user training integrated into LMS. Benefits from the new systems show improved efficiencies.

S&P ● ● ● ●

3.4.10

Maximise the adoption of the Electronic Records Management system and improve the use of the system functionality of CM9. Broaden compliant record keeping process.

Review of licence holders conducted post Ungerboeck implementation. 100% of licence holders are using the new system.

S&P ● ●

3.4.11 Develop a Food Safety Management Plan. Plan completed, implemented and HACCP food safety accreditation achieved (BM Alignment and engagement).

VM ●

3.4.12

Develop B2C project plan, appoint provider and effectively implement the new system.

Project plan developed, Service provider appointed, all staff trained, 100% implementation of new system.

VM ● ●

3.4.13 Develop a strategic procurement approach targeting our top suppliers to realise savings in operational expenditure.

Improved operating expenditure on relevant contracts against budget by 2%.

S&P ● ● ● ●

3.4.14 Develop a contract management framework to ensure suppliers provide an effective and efficient service.

Best practice framework is adopted. Improved contractor performance.

S&P ●

3.4.15 Develop a forward plan for procurement to ensure best practice processes and timeliness.

All contracts deliver the best value for money and desired outcome for the organisation.

S&P ● ●

3.5 Support organisational learning and continuous improvement

3.5.1 Staff are competent in multiple event day roles. Rotational event roster in place across event series to ensure permanent staff regularly work in different event day roles.

VM ● ● ●

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3.5.2

Develop and implement OSH condition audits for Casual Event Supervisors for each event.

Audits completed during each event. VM ● ● ● ●

3.5.3 Identify opportunities to grow content utilising LMS platform.

Additional modules to meet business needs are created. CS ●

3.5.4

Increase benefit and use of the Rapid Global Contractor Management System.

100% contractor sign in with Rapid Global. 100% contractor compliance spot checks meet with VenuesWest’s requirements.

CS ● ● ● ●

3.5.5

Increase benefit and use of the Chemwatch Chemical Management System.

100% of employees with Dangerous Goods responsibilities trained in and using the system.

CS ●

3.5.6

Ensure policy and procedures reviews support the organisation’s key priorities.

Safety related policies and procedures are best practice and current.

CS ● ● ● ●

3.5.7

Develop a Digital Transformation project framework for all future projects through the learning from B2B success and best practice.

Framework provides guidance on research, procurement, governance, user groups, implementation, resourcing and budgets, transition period, benefits realisation and reporting and timelines.

S&P ●

3.5.8 Conduct Strategic Plan review and forecast for next five years to 2025.

New five-year Strategic Plan developed and launched mid-late 2020.

S&P ● ● ●

3.5.9

Monitor the benefits realisation for the new systems. i.e. MDM, SC, MC and B2B.

Performance (time and cost/value) of the new system is monitored and improved.

S&P ● ●

3.5.10 Review contract precedents to ensure best practice practices and savings.

Existing contracts reviewed to ensure alignment and consistency, in particular, HBF Park and Motorplex (if appropriate) agreements.

S&P ● ● ● ●

Strategic Objective 4. Realise commercial success to subsidise high performance sport and enable reinvestment in our venues

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No. Operational Initiative Success Measure Lead Expected work undertaken

Q1 Q2 Q3 Q4

4.2 Directly support high performance (HP) athletes and teams

4.2.1 Build on the success of the Brand Ambassador program by maximising the benefits received from providing support to elite athletes.

Ambassadors showcase VenuesWest support of high-performance sport. Tiered program is considered to obtain a high-profile athlete.

S&P ● ● ● ●

4.3 Pursue commercial success to develop and enable high performance sport

4.3.1

Develop signage strategy for HBF Stadium and Bendat Basketball Centre to address naming rights, commercial, directional and general space and temporary, event and commercial activation.

Strategy implemented at three venues. S&P ●

4.3.2 Deliver an event under a co-pro or self-promote models. Event delivered, positive financial return to VenuesWest. VM ● ●

4.3.3 Audit relevant supplier and service contracts or agreements and negotiate inclusion of additional rebates, cost reductions or additional benefits where appropriate.

Benefit realisation of $100,000. VM ● ●

Strategic Objective 5. Secure World Class events

No.

Operational Initiative

Success Measure

Lead Expected work undertaken

Q1 Q2 Q3 Q4

5.1 Actively pursue world class sport and entertainment events

5.1.1 Develop and implement a Business Development matrix for world class events, major commercial events and second-tier content.

Increased revenue or net return to VenuesWest. VM ● ● ● ●

5.1.2 Deliver content to a high standard and maximise Licensee returns to encourage repeat business.

NRL club secured for multi-year agreement. VM ● ●

5.2 Work collaboratively with partners to secure major events to Western Australia

Page 15 of 15

5.2.1 Work in collaboration with Tourism WA, VenuesLive and AEG Ogden to secure content.

World Class Events secured. VM ● ●

5.3 Activate venues and precincts to support and celebrate world class events

5.3.1 Develop a program to activate venues and precincts for Olympics 2020.

VenuesWest is aligned to supporting world class sport. S&P ●