Manly Hydraulics Laboratory (MHL) was established in 1944 under the then NSW Department of Public Works (DPW now Public Works Advisory), to undertake hydraulic studies of the Oberon Dam. MHL is now a business unit within the Water Division of the Department of Climate Change, Energy, the Environment, and Water.

In 1991, as part of the NSW government’s annual Program Performance Reviews, we were engaged to conduct a systematic review of the overall effectiveness and efficiency of MHL operations as well as the appropriateness of administrative and accounting systems.

Our review comprised, amongst other things, a program of interviews concerning current management, operations, workforce and financial arrangements, as well as an assessment of existing policies and procedures. Attention was given also to high level analysis of existing workflow and “sales” pipeline matters.

The review produced a set of recommendations covering anticipated needs and change requirements for the next few years. The main conclusion was that, since it was established as a full cost recovery business in 1989, and although its commercial performance had been good, the inevitable constraints imposed by Government on public sector business enterprises, had significantly reduced the effectiveness of some aspects of MHL management and operations.

Among a number of proposed changes to current operations our primary recommendation was that a formal Operational Charter, providing a more flexible and robust management system for MHL, free from arbitrary corporate interventions, should be agreed with Government as soon as practicable.

The recommendations of our review were incorporated into the MHL Business Plan and business planning process.

Completion of this work concluded our first major professional engagement for management advisory services.