Investment choices and decisions need to be informed by disciplined processes across the system and agency level in order to optimise value generated from new and existing investments, increase the efficiency and effectiveness of the investment management system and enable investments to achieve their specific investment objectives.
System performance is about the extent to which an agency has met the investment system objectives and expectations.
The Treasury will consult with relevant assessment partners to ascertain an agency’s score.
The assessment will require demonstrated compliance with the objectives, rules and expectations in Cabinet Office circular CO(15)5. This lag indicator also takes account of information from various sources on the extent to which the agency has appropriately applied any relevant directions issued under s107 of the Crown Entities Act (if relevant), and any other relevant Cabinet-endorsed standards or norms (including corporate centre standards).
The circular itself requires investment choices and decisions to be informed by disciplined processes across the system and at an agency level in order to:
- optimise value generated from new and existing investments
- increase the efficiency and effectiveness of the investment management system, and
- enable investments to achieve their specific investment objectives.
Further, the circular states that the investment system must:
- enable Cabinet and agencies to prioritise and coordinate significant investments according to government and State services long term priorities
- establish, disclose and then deliver the agreed value from particular investments
- promote good stewardship of Crown resources
- enable Ministers, agencies, and the corporate centre to exercise their required roles in a flexible and efficient manner, and
- make systematic use of performance information in corporate centre and agency investment management and decision-making processes.