Performance – Strategic Direction 4

Enabling balanced growth through innovation, empowering community groups and volunteers, and fostering a resilient, thriving and vibrant local economy.

Community Focus

Youth Centre

New direction for Shire Youth Services

We are improving the way we deliver youth services on the Mornington Peninsula with the aim of expanding opportunities for young people to connect and belong.

At the 2 September Council Meeting, councillors decided to partner with a range of external providers to deliver a more targeted and flexible mix of services for our young people. This new model will provide more opportunity for them to connect with services at a time and place that suits them. 

web_traffic New direction for Shire Youth Services

Realignment sets Council up for the future

Mornington Peninsula Shire Council CEO Mark Stoermer announced a major organisational restructure aimed at delivering improved customer service and long-term financial sustainability.  The new structure aligns the organisation to the Council Plan and Council strategies.

web_traffic Realignment sets Council up for the future

Strategic Objective Updates

Strategic Objective 4.1 – A financially sustainable, high-performing and well-governed Council

Performance Measures

check_circle $69,433,000 Net Operating Expenses (YTD forecast $71,533,000)

check_circle $12,134,000 Expenditure on Capital works projects (YTD forecast $11,229,000)

check_circle 80% of Annual Action Plan actions completed or on track (Target – 80%)

cancel 15.5% of Council decisions made at meetings closed to the public (Target - <10%)

cancel 91% of Freedom of information requests resolved within statutory timeframes (Target - >95%)

check_circle 2.5% Voluntary staff turnover (Annual target - <10%)

do_not_disturb_on 5.6% Position vacancy rate (no target)

Annual Actions

4.1.1.1 Develop the Financial Plan with identified levers for achieving financial sustainability

  On Track

The draft Financial Plan was presented to Council and placed on Public Exhibition throughout Q1. The public exhibition closes on 8 October and will go to Council for adoption on 30 October 2025.

4.1.1.2 Develop the Revenue and Rating Strategy

  Monitor

Following the adoption of the Revenue and Rating Plan in June 2025, we are working on a revised rating strategy in line with Council’s recommendation to update ahead of the next budget for 2026-27. An initial workshop with Councillors has already taken place, and we will present draft options to the Council in the upcoming quarter. Community consultation is expected to occur in December 2025.

4.1.1.3 Review the Procurement Policy

  On Track

The review of the Procurement Policy is ongoing and was distributed to an internal working group, which has provided feedback. The draft Policy is on track to progress to a Council Meeting for adoption by December 2025.

4.1.1.4 Progress the Future Workplace Project 

  On Track

Officers have completed a business case evaluating the delivery of a consolidated workplace in Hastings, in accordance with the Council resolution of 11 March 2025.

The business case indicates that the capital costs of developing a facility that meets the endorsed functional requirements for an organisation of the Shire's size are significant. Considering the Council's current financial position and future commitments, the project is not expected to deliver a net financial benefit over a 20-year period.

As a result, the project requires a strategic reset to explore all available options for the Council. This process will reassess the issues the project aims to address and revisit its objectives in the context of the new organisational structure and financial plan.

Officers will collaborate with Davidson Advisory, who will lead the strategic reset. This will include organising a workshop for Councillors to inform recommendations on the next steps. This workshop is scheduled for the end of November.

4.1.1.5 Explore key commercial opportunities to increase revenue

  Monitor

The exploration of key commercial opportunities is ongoing, but has been deferred until completion of the Organisational Structure Review in October.

4.1.1.6 Implement Contract Management Plans across all contracts

  On Track

Training has been provided to all Contract Managers, emphasising the importance of contract auditing as a tool for effective contract management. This includes the adoption of the new contract auditing framework that was presented to the Audit and Risk Committee. We are on track for the implementation of Contract Management Plans by December 31, 2025.

4.1.2.1 Implement the Good Governance and Decision making Framework

  Not Started

Action due to commence in Q2

4.1.2.2 Review the Enterprise Risk Management Framework

  On Track

The Risk Appetite Statement was drafted and presented to the Executive for endorsement. The Audit and Risk Committee (ARC) approved the Statement in August 2025. Feedback from both the Executive and ARC has informed the final version of the Risk Appetite Statement.

4.1.3.1 Implement the Integrated Strategic Planning and Reporting Framework including a review and consolidation of Council Strategies and Plans

  On Track

The Council Plan 2025-2029 and the Annual Action Plan were finalised and adopted by Council. These are key documents in the Integrated Framework that set the future strategic direction for Council.

Work progressed includes updating reporting processes, in preparation for the Community Report and development of updated performance monitoring dashboards.

In the upcoming quarter, we will start work on an integrated Business Planning Process for the 2026-2027 Financial Year, alongside the budget and complete a review of current strategies and plans to ensure alignment with the Council Plan 2025-2029.

4.1.4.1 Review the Shire's Workforce Plan

  On Track

The first stage of this project is the implementation of the Organisational Structure Review which is due to be completed in October.

Background work and planning for the review will be undertaken in Q2 with work on the Shire’s Workforce Plan due to start in early 2026.

4.1.4.2 Review and deliver a new Gender Equality Action Plan

  On Track

The Gender Equality Action Plan is due to start in early 2026. The project plan is on track and the data background work, which will inform the Action Plan, is underway.

4.1.5.1 Develop and deliver the IT and Digital Strategy

  On Track

The IT and Digital Strategy has been adopted in principle by Executive and is scheduled to be formally considered by Executive in the following quarter. The strategy has been designed to incorporate work that has already started and is within the operating budget.

Strategic Objective 4.2 – Community-centred, responsive and fit-for-purpose services

Performance Measures

check_circle 81% of Customer requests actioned within timeframe (Target – 80%)

check_circle 7.9 days, on average, for customer requests to be completed (Target – decrease)

check_circle 4.2 out of 5 for voice of customer satisfaction score (Target – increase)

check_circle 50% First contact resolution for telephone calls (Target – increase)

check_circle 50% First contact resolution for telephone calls (Target – increase)

do_not_disturb_on 1,278,650 customer interactions across all channels (in person, phone, correspondence, webchat and web page visits) (No target)

Annual Actions

4.2.1.1 Implement the Service Review program

  Off Track

The delivery of Service Reviews has been paused due to the Organisational Strategy and Structure Review. This delay has significantly impacted the program, with four reviews currently on hold and two scheduled reviews yet to start. The Shire’s Service Improvement Team is working with the Executive to review the schedule.

The Service Review of the Shire’s Youth Services was presented at the Council Meeting on 2 September 2025. During this meeting, Councillors decided to partner with external providers to offer a more targeted and flexible mix of services for young people in our community.

4.2.2.1 Implement the Customer Strategy

  Not Started

Our Customer Strategy remains on track with good progress across key priority areas. Key actions delivered in support of the Customer Strategy include:

  • Customer journey mapping. We commenced mapping the customer journey for high-volume enquiry types in collaboration with key business units. This will help us identify pain points, streamline processes and improve service delivery.
  • Exploring technology and AI opportunities. We continue to explore how generative AI can enhance service efficiency and customer experience through tools like Penny AI and myLot. Since its launch in February 2025, Penny AI has handled 4,973 webchats - with faster response times (47 seconds vs. 55 seconds for human officers) and a customer satisfaction score of 3.8/5. Meanwhile, myLot consistently achieves 62–75% completion rates on weekly planning enquiries, with strong uptake across suburbs including Mount Eliza, Mount Martha, Rye and Dromana, demonstrating broad community engagement. We have increased interactions with the tool by 94 per cent since launching in April 2025.
  • Staff capability and culture. To strengthen our customer-focused culture, we’ve invested in staff training and development. We launched new Customer Service/Customer Experience E-Learn modules to build customer experience awareness and to embed best-practice service principles across the organisation.
  • After-Hours service review finalised. We completed a review of our after-hours customer service arrangements. Following this review, we have awarded the contract to the same external supplier, based on their continued ability to meet our service requirements. The review process has also provided improved insights into reporting and performance monitoring, which will support ongoing enhancements to after-hours responsiveness and service delivery. 

4.2.3.1 Implement a Continuous Improvement Program

  Monitor

Key actions delivered to support our Continuous Improvement Program include:

  • Starting our A3 problem solving projects. A3 problem solving is a structured, collaborative, and visual lean manufacturing method that uses a single sheet of A3-sized paper to document a problem's analysis, root cause, potential solutions and implementation plan.
  • Launching the Obeya Room. An obeya room is a centralised physical or digital space for cross-functional teams to collaborate, manage projects and make decisions quickly using visual management principles.

Further work has been deferred until the completion of the Organisational Structure Review in October.