An outcome-based approach Key elements of reform

2 KEY ELEMENTS OF REFORM

2.1 Introduction

In this chapter, the reviewers have presented a detailed synopsis of the key elements of recommended reform, including: • The proposed outcome-based model • Agreed outcomes, as they relate to animal health and welfare; • Defined performance targets, as they relate to the agreed outcomes; • Tools relevant to the achievement of the performance targets, including improved approaches to risk and incident management; • Compliance imperatives, including accreditation and auditing; • The responsibilities and outputs of the Livestock Export Standards and Compliance Organisation LESCO; and • Compatibility with federal and state legislation.

2.2 Key elements of reform

2.2.1 An outcome-based approach

The ALES documentation is currently modelled on a prescriptive standards approach. As such, it provides detailed information about the actions that should be taken by exporters at each stage of export. This is in direct contrast to an outcome-based approach, where emphasis is placed on outcomes rather than actions. In other words, outcome-based standards describe the results of actions that is, outcomes that should be achieved, rather than the actions themselves. In agreement with the project brief, the reviewers strongly support the adoption of outcome-based standards by industry. This latter methodology is preferred because: • It addresses a range of inherent flaws in the prescriptive standards approach. A detailed critique of these issues, including the management of biological and physical risks, is presented in Chapter 3. • It infers a close and direct relationship between exporter responsibilities and actions on the one hand and levels of animal health and welfare that are considered acceptable to the Australian public on the other. • It is consistent with a general international move in business to reward performance rather than activity. In order to achieve consistency throughout this review, and for the reasons given previously, it is recommended that an outcome-based model is adopted uniformly throughout industry, such that outcomes form the basis of: • Risk management, as it relates to animal health and welfare; • Incident management; • Compliance, both in terms of accreditation and auditing. 23 RECOMMENDATION 1: The reviewers strongly support the adoption of outcome- based standards by industry. In order to achieve consistency throughout this review, it is recommended that an outcome-based model also form the basis of risk management as it relates to animal health and welfare, incident management, and compliance both in terms of accreditation and auditing. The outcome-based model will rely on each of the following elements: • Agreed outcomes, as they relate to animal health and welfare;