A Strategic Review of Desert Knowledge Australia - Prepared forthe Northern Territory Department of Business by Charles Darwin University
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Strategic Review of Desert Knowledge Australia - January 2014
A Strategic Review of
Desert Knowledge Australia
Prepared forthe Northern Territory
Department of Business by
Dr Don Zoellner
Northern Institute
Charles Darwin University
A1ice Springs
January 2014
Strategic Review of Desert Knowledge Australia - January 2014
Table of Contents
Table of Contents Page 2
2. Executivesurnmary Page 3
3. Strategic Review Objectives Page 4
4. Desert Knowledge Australia Outcomes to Date/Future Deliverables Page 9
5. Return on Investment to the NT Government Page 19
6. Governance Arrangements of Desert Knowledge Australia Page 21
7. NT Government Commitments to Desert Knowledge Australia Page 26
8. Future Desert Knowledge Australia Scenarios Page 28
9. Alternative Business Operating Models Page 31
10. Directlmpacts on Employment and Economy Page 35
11. National Impact and Related Benefits to the Northern Territory Page 38
12.1nterrelationship Between Desert Knowledge Australia and Ninti One Page 43
13. Options for NT Government Consideration Page 45
14. Appendix One - Terms of Reference Page 48
15. Appendix Two - Conduct of the Research Page 52
16. Appendix Three - Documents Examined Page 54
17. Appendix Four - Confidential Consultations Page 58
18. Appendix Five - Desert Knowledge Australia Staff Numbers/ Year Page 60
19. Appendix Six - Data for NT Government Return on Investment Page 61
20. Appendix Seven - Individual Project Cash Income Page 66
21. Appendix Eight - Chronology Leading to Desert Knowledge Australia Page 68
1997-2004
22. References Page 72
2
Strategic Review of Desert Knowledge Australia - January 2014
Executive Summary
The Desert Knowledge Australia Act(2003) provided the charter for an organisation that
would be based in the Northern Territory but have a national mandate to encourage and
facilitate social and economic change in desert/outback/arid/remote Australia under the
direction of Northern Territory Cabinet Ministers. Even with a miniscule budget and minimal
staff resources, a mostly volunteer Board has joined with a senior management team in a
self-referential belief system that they possess a special capacity to rapidly alter the course
of socio-economic affairs outside of the major coastal cities through a process of devolved
governance reform
In the absence of Northern Territory Government engagement but guided by an open-ended
and overly optimistic piece of legislation, personal causes and trends have provided the
strategic guidance for Desert Knowledge Australia forthe pastfive or six years' A self-
referencing environment dominated by a consistent group of persons has emerged and
contributed to an operational style that is inconsistent with contemporary governance
standards. In spite of indicating that the Northern Territory Government would consult with
the community in a review of Desert Knowledge Australia three years after the legislation
was passed, this is the first such analysis
The review was informed by confidential consultations held with 47 individuals in addition to
the examination of more than 140 documents and websites during December 2013 and
January 2014. The content of this report describes the majorthemes that have arisen from
this extensive accumulation of financial details, opinions and written materials rather than the
opinions of the reviewer. A purposeful decision was taken not to presentthe findings in a
more traditional'management speak' style, but to use a form of descriptive story-telling in an
effort to cutthrough the buzz words, complexity and confused messages that are associated
Desert Knowledge Australia in order to determine what government has inherited
In spite of the loss of connection with the political and public service leadership, Desert
Knowledge Australia has made a significant return on the Northern Territory Government's
investment while helping to diversify/support economic development in Central Australia
As always, there a number of possible scenarios and future operational possibilities
available to government for an organisation like Desert Knowledge Australia. Serious
consideration should be given to a combination of legislative change, board and senior
management renewal and Ministerial direction. The bipartisan foundation al proposition that
organisations and individuals would work together in mutually reinforcing partnerships,
alliances and networks was not only wildly optimistic, but neglected the reality of how
funding is distributed and whattypes of behaviours are rewarded
Ifthe Northern Territory Government envisages a future use for Desert Knowledge
Australia's brand value and the related infrastructure investment, considerable attention will
need to be paid to rebuilding the relationships between the corporation and
. government
. the community
. the knowledge producers and innovators of the Northern Territory
3
Strategic Review of Desert Knowledge Australia - January 2014
Strate ic Review Ob'eatives
Subject to the passage of the legislation by the Assembly, the government will
review the legislation in three years' time. Desert Knowledge is a new and
innovative project, appropriate for an economy moving into the developing field
of knowledge and innovation. It is also a projectthat has been conceived,
nurtured and developed with close community consultation. Accordingly, three
years would seem to be an appropriate time after which the government intends
to once again consult with the community on the legislation
(Clare Martin, Second Reading Speech I May 2003)
This report of the strategic review Desert Knowledge Australia (DKA) provides a
determination whether the original philosophy, intent and the public policy aspirations of the
Northern Territory Government(NTG) and desert communities are being achieved and is
representative of value on investment under the currentfunding arrangements. The views in
this report capture the observations and contributions of those who were consulted and in
the extensive documentation, rather than those of the reviewer, unless otherwise noted. The
structure of the report is based upon the review deliverables that are described in the terms
of reference in Appendix One
In order to make this assessment a wide variety of electronic and hard copy documentary
sources were examined. Consultations were held with nearly 50 individuals. In spite of the
coincidence of the Christmas-New Year period, not a single person rejected a chance to talk
with the reviewer indicating a high level of recognition of Desert Knowledge Australia and
their equally strongly held views - both positive and negative. Appendix Three lists the
documents while Appendix Four describes the individuals and their organisational
affiliations
The options presented for consideration that have been drawn from this review necessarily
reflect the findings and interpretations of a single individual and should be treated as such
However, the collection of information has been extensive and has attempted to capture
both the spirit and the more easily quantified outcomes attributable to Desert Knowledge
Australia. This material has generally been framed in the form of where it has been, where it
is now and where its future might lie
The overallimpression of Desert Knowledge Australia that has emerged from this process
can be summarised as follows
. nothing about Desert Knowledge Australia is at it seems
. its uricritical adoption of 'buzzwords'is irresistible
. Desert Knowledge Australia has moved from being engaged and listening to aloof
and lecturing and
. this is an organisation that has lost its way, most likely due to an initial overly
optimistic assessment of the potential of synergies and collaboration being rewarded
in both financial and operational terms
Desert Knowledge Australia is an organisation that has attracted significant levels of external
funding tied to specific projects, most of which were conceived of and commenced in the
earliest days of planning. The ongoing reality is that Desert Knowledge Australia is totally
4
Strategic Review of Desert Knowledge Australia - January 2014
reliant upon continued Northern Territory Government funding to provide the base from
which the other projects can operate. '
Two features dominate the origins of Desert Knowledge Australia. The first was a desire on
the part of Government(as part of the A1ice in Ten program) to respond to the latest
economic downturn facing central Australia in the late I 990s by looking beyond the
traditional but variable industries of government, primary production, tourism and mining in
order to stabilise and grow the regional economy. The second was a recognition that many
of the issues facing the desert Australia were cyclical and often were like the landscape
itself, with vast distances, sparse population, pockets of significant potential, viewed
differently by different groups and complex understandings had developed in response. In
other words, a 'desert ecosystems' model was developed that would serve as the foundation
for Desert Knowledge Australia
At the risk of oversimplification, ecosystems are built upon sets of complex relationships and
Desert Knowledge Australia was modelled from this style of thinking which, in turn,
determined the types of organisational structures, the layout of the precinct and the business
model. The original intention for Desert Knowledge Australia was to create both an 'umbrella'
mechanism and a place to facilitate interrelationships that acknowledge the special
characteristics of the arid zone. There was also a 'heady','optimistic','romantic' and
'possibly naive' view that there exists a special'desert knowledge'that could be determined
and disseminated to the rest of the world. Desert Knowledge Australia was never conceived
of as a stand-alone, commercially viable organisation. It was to be another tool available to
the Northern Territory Government to support and improve Central Australian social and
economic prosperity. The structure was also envisaged as a means to maximise Northern
Territory control and economic benefit in recognition of the practical reality that many
Commonwealth funded programs prefer to support activities that take place in multiple
jurisdictions
The simple proposition was that more knowledge and better ideas emerge when a group of
people work together rather than leaving isolated individuals to their own devices. Desert
Knowledge Australia was to facilitate this growth in knowledge and ideas by brokering
relationships, building alliances (Societies of Participants), offering a physical space to get
together (the Precinct), sponsoring desert research (the Cooperative Research Centre) and
improving communications between like-minded individuals and organisations (Outback
Business Network and the Virtual Meeting Place). Desert Knowledge Australia was
conceived of as an expert organisation that could build and maintain an ecosystem of
relationships that would bring benefit to the Northern Territory by harnessing the research
and knowledge produced locally and selling it both nationally and even internationally
In order to accomplish these tasks, Desert Knowledge Australia was linked into the very
highest levels of both the Northern Territory Public Service and the Northern Territory
Government. Ministers and senior public servants took a keen interest in and had a strong
commitment to Desert Knowledge Australia and, in return, the governance and management
of Desert Knowledge Australia were highly responsive to the various organisational and
political needs of the Northern Territory Government. However, with changes in key
This position is described in each of the annual audited financial statements prepared by the
Northern Territory AuditorGenerals' office. For example, see p. 16 Desert Knowledge Australia
Annual Reportforthe financial year ended 30 June 2012
5Strategic Review of Desert Knowledge Australia - January 2014
personnel in both Desert Knowledge Australia and the Northern Territory Government, this
close link has not been maintained overtime
This set of concepts was translated into the Desert Knowledge Australia Act(2003, p. I)
The objects of this Act are
(a) to encourage and facilitate education and training, research, commerce and
technology that is relevant to the health, well-being, sustainable economic and
social development and improved livelihoods of all communities in deserts and
arid lands
(b) to develop wealth creation activities in deserts and arid lands in a manner
that promotes harmony in and between communities in deserts and arid lands
while maintaining the economy and environment of deserts and arid lands in an
ecologicalIy sustainable manner and the culture and identity of those
communities
(c) to encourage and facilitate the formation of partnerships, joint ventures,
alliances, networks and other cooperative arrangements forthe purpose of
achieving the objects specified in paragraphs (a) and (b) and
(d) to establish a statutory corporation to carry out activities forthe purpose of
achieving the objects specified in paragraphs (a), (b) and (c)
Most of the recently developed activities that have produced the outcomes summarised in
the next section can be described as intellectually unadventurous. Both the Board and
management have drifted into safe areas that are already well served - school education,
leadership and critiquing government as an institution. Few significantly new or specialised
desert knowledge agendas have been developed by Desert Knowledge Australia since the
initial consortium handed over operations. The one possible exception exists in the Desert
Leadership sub-programs that participants have found to be very stimulating and useful at a
personal level, although few cash donors have maintained a long term relationship with the
program. Nor has the alumni of the program been formally harnessed to promote Northern
Territory Development or major new knowledge been captured and applied as a result of the
leadership series
Desert Knowledge Australia has chosen to operate in spaces that are most similar to social
philanthropy, as opposed to commercial, economic or health development. The manner in
which it operates bears a remarkable resemblance to the nature of seeking and granting
philanthropic funds described by Michael Hooker(1987, pp. 128.35) as "playing a game of
rhetorical persuasion where the rules regarding honesty and candour are suspended or
subtly altered". A "conspiracy of optimism" arises from the strongly shared desire to do
something important. "A conventionalis ation of belief emerges that is mutually supportive
and rejects contrary views and evidence". The participants are afflicted with a "myopic
optimism"
6Strategic Review of Desert Knowledge Australia - January 2014 The 01
Strategic Review of Desert Knowledge Australia - January 2014
potential opportunities on which the DKP partners should focus energy and
Investment in order to develop further into a prospectus
In simple terms the two clear patterns represented
. Clear zones for 'activity areas' or
. Activity areas which are fully integrated
Note: Subsequent to the Studio Sessions, a third clear pattern emerged, namely
a layering of the two clear patterns that emerged from the group work during
Session 2.7
Another example of this seemingly congenital incapacity to clarify and adopt specific
strategies appears in the D/Strategic Review of Desert Knowledge Australia - January 2014
Outcomes to Date/Future Deliverables
The consultations produced two recurring themes in relation to the past decade's outcomes
from Desert Knowledge Australia. The objects of facilitation, encouragement and
development specified in the Act have no easily quantified or universally accepted outcome
measures. Similarly, they are seldom subject to measurement in the short term. Regardless,
many of those consulted feltthat Desert Knowledge Australia was one of the few 'good
news' stories from Central Australia and that the Northern Territory Government could make
much better use of positive accounts of life in the arid zone
While Desert Knowledge Australia has undertaken a variety of smaller activities, mostly to do
with bringing groups together and facilitating cooperative actions and establishing the
business operations of the corporation, the items listed below are the major activities that
have been described in the annual reports. Refer to Appendix Seven for a consolidated list
of the annual current(2012) dollar value income for each of these projects
Desert Knowledge Australia provided low-cost student accommodation using flats at
Priest Streetfrom 2004-08. This activity was wound up because the demand for yearround
accommodation was not present and the program was being subsidised from core funding
The initial assumption was that a largish number of students would be attracted to study and
conductresearch in the precinct and that a lack of affordable accommodation would have
been a barrier to living and studying in A1ice Springs
The Desert Knowledge Precinct has been established as required by the Desert
Knowledge Act. This was achieved by the consolidation of three parcels of land. These
included one lot subject to native title claim, one that was considered by the Northern
Territory Government to be freehold and one that had been apparently 'overlooked' by most
parties in respect to native title. The combined 73 hectare site is subject to a registered
Indigenous Land Use Agreement that was jointly signed by Lhere Artpe, the Central Land
Council, the Northern Territory Government and Desert Knowledge Australia. '
In spite of the clear statement of function from the Act"to establish, develop and manage the
Desert Knowledge Australia Precinct" (Northern Territory of Australia 2003, p. 3), the current
Board and management find it difficult to achieve this task. In addition to believing that"The
Precinctis a risk"; they go onto state in reference to managing and developing the precinct,
"we can't keep trying to do it ourselves - we don't have the time or the expertise"."
Reflective of this type of segregated thinking about the operational responsibilities for the
Desert Knowledge Precinct, even the annual budget separates 'core DlStrategic Review of Desert Knowledge Australia - January 2014
A Regional Video Network was established in 2003 and progressiveIy expanded through
2005 based upon an AUSlndustry cash contribution of $256,000 and a considerable donation
of telecommunications access by Telstra. This video connection linked regional and remote
centres in the Northern Territory, New South Wales, Queensland, Western Australia and
South Australia in order to promote and explore business opportunities and to use what was
then fairly modern technology to meetthe partnership and alliance-building responsibilities
listed in the Desert Knowledge Australia Act. This early activity has in orphed into a long
running series of connections through the Virtual Meeting Place (still supported in-kind by
Telstra) which involves video and teleconferencing on a range of topics. In addition, the
Desert Digital Futures program can trace its origins back to this initial interest in and use of
information and communications technology.
The Outback Business Network has a long history within Desert Knowledge Australia and
its task to establish networks, partnerships and alliances with a goal to improve economic
activities and livelihoods in the arid zone. The then Regional Video Network was built upon
with an additional $40,000 of in-kind telecommunications support from Telstra to establish
the Linked Business Networks Project. " Overtime this initial project has grown into the
Outback Business Network which has attracted some $6,498,500 offunding overthe period
2008-13 and, other than the precinct itself, is the single largest activity of Desert Knowledge
Australia. BHP Billiton has been a major contributor, but has confirmed that it will no longer
support the project as it always viewed its contribution being used as start-up funding and
that other financial sources would need to be found in the future. The sponsor believes that if
businesses found true value in the network, they would help fund it. BHP Billiton's
contribution was given as a way of providing support for Indigenous businesses as part of
their Reconciliation Action Plan. BHP Billiton feels that its corporate objectives have been
met.
Desert Knowledge Australia provided a very useful and structured way for BHP Billiton to
add value to the community in a way that meets their normal pre-investment audit
requirements forthe distribution of financial grants. The capacity of Desert Knowledge
Australia to both meet due diligence requirements of major corporations and philanthropies
and attract monies that would notflow directly to the Northern Territory Government is one of
the strengths of this body. Telstra's 'in-kind' contribution of telecommunications services to
Desert Knowledge Australia is not limited to this project. The donation of a contractualIy
specified amount of services is a purely commercial decision based upon the marketing
assumption that many remote businesses will appreciate that Telstra Country-wide is also
working in a similar environment and will decide to use this corporation's services.
The Outback Business Network has come in for some criticism in the media as to whatis
actually achieved through their activities. The style and content of the network's reporting" is
remarkably similar to that used by the Department of Business when citing the successes of
October Business Month. " Both rely heavily upon testimonials and soft focus stories to
report upon their somewhat related activities of facilitating and encouraging businesses that
are operating in some of the most difficult environments in the nation. The review has been
unable to discover any surveys of Outback Business Network members as to their
Desert Knowledge Australia Annual Report 2003-04, p. 8
Desert Knowledge Australia Annual Review 2012-13, p. 9
htt nunw. obm. nt. ov au/Pa es/default as x
10Strategic Review of Desert Knowledge Australia - January 2014
perceptions of the service or if they are willing to pay for "ongoing marketing, business
benefits for members"" in the future when the BHP Billiton sponsorship ceases. The overall
summary of the outcomes from the Outback Business Network is possibly best described as
'hit and miss', with the positives outweighing the negatives. The network is perceived to be
competing with other groups in the same space such as the Master Builders Association,
tourism bodies, professional associations and various chambers of commerce and industry.
The Desert Knowledge Australia Solar Centre has resulted from an initial study that was
funded in 2005-06 through a grant of $19,500 that was directed to the Centre for Appropriate
Technology. As a resultfunding for solar infrastructure was received, apparently by the
Centre for Appropriate Technology, and in 2008-09 a book value forthe solar equipment of
just under $2 million was transferred to the balance sheet of Desert Knowledge Australia and
recorded as a donation from the Centre for Appropriate Technology. This was followed by
another transfer of about $700,000 for additional solar equipment in 2010-11 (refer to
Appendix Seven)
It is difficult to ascertain if the Board or senior management actually understand the real
costs associated with the ongoing operations of this project. For example, in a personal
communication Desert Knowledge Australia (17 January 2014)indicated that"A separate
depreciation amount is not allocated for the Solar Centre". However, the audited financial
statements indicate an annual depreciation amount of $147,143 and an accumulated
depreciation of $456,864 by 2012. " There is no record or recollection of a project profit and
loss statement being presented to the Board forthe Solar Centre. It is reported that the Solar
Centre had an income of $73,287 and an expenditure of $63,076 in the 2012-13 financial
year. " This income derives from a complex mechanism of charging precinct occupants for a
proportion of the total Power and Water Corporation quarterly bill plus an estimated amount
of electricity generated by the demonstration facility, charged at commercial rates. This
practice is at odds with the income statement described in the annual financial report which
clearly states "This internal project's revenue stream is achieved through feeding of excess
electricity generated back into the main grid. Expenses consisted of management and
maintenancecosts
maintenance costsofofthe
the solartechnoloassets".
solartechnology assets""
In spite of repeated searching, no evidence can be found that the Board or management
understand the real costs associated with generating electricity through this demonstration
facility. The Solar Centre will be revisited in the governance section of this report in relation to
conflicts of interest to do with the transfer of operational costs of the Solar Centre to Northern
Territory Government funding provided forthe operations of Desert Knowledge Australia and the
Desert Knowledge Precinct
In spite of the lack of clarity aboutthe financial operations and potential for conflict of interest
between precinct occupants, Desert Knowledge Australia intends to expand activities in this area
in conjunction with CAT Projects, the original partners. This is based upon the business
objective' to "increase revenue from DlStrategic Review of Desert Knowledge Australia - January 2014
tAustralian Renewable Energy AgencyIfunding to A1ice Springs to build solar capability and
capacity". There is no indication of any risk analysis being undertaken before proceeding down
this path
The Outback Tourism Project operated in 2004 and 2005 with an income of $427,500. In
addition to facilitating the establishment of cross-border relationships, the program produced
an Outback Tourism Strategy - Our Outback. ' Partnerships and Pathways to Success in
Tourism.
While there are various views as to the level of creditthat can be given to Desert Knowledge
Australia for what became known as the A1ice Solar City program, there is no doubtthat
A1ice Solar City would not have come into being withoutthe work that was provided by the
original Desert Knowledge Australia consortium. There are quite specific references in a
number of the interim Board minutes and the projectfacilitation work is described in the
2003-04 and 2004-05 Desert Knowledge Australia annual reports. The total solar city
economic impact on the A1ice Springs economy is estimated to have been just under $93
million (Gerritsen, Zeng & 0'Leary 2012, p. 23)
With the setting up in 2013 of a wholly-owned company, Desert Knowledge Foundation"
the goal of establishing deductable gift recipient status that was first identified in 2004 has
finally been achieved. " Desert Knowledge Australia believes that this provides a mechanism
to receive philanthropic funds and access areas of support that would not be available to
Northern Territory Government agencies. A number of those who were consulted who have
experience with this source of funding cautioned that the philanthropic and corporate giving
sectors require huge amounts of relationship maintenance and the capacity of a small,
remoteIy based organisation such as Desert Knowledge Australia to achieve significant
outcomes would most likely depend upon serendipity and personal contacts rather than a
strategic action
In addition, the foundation is seen as a means of establishing a research agenda guided by
a volunteer research committee (apparently chosen by the now familiar self-referential
processes) as well as a structural/organisational capacity to reallocate operational
responsibility for unspecified Desert Knowledge Australia programs including an "opportunity
to delineate DKA's non-precinct work, (siC) from its Precinct responsibilities"."
The Desert Knowledge Foundation's focus upon a research agenda can also be represented
as an attempt to return to the original purpose of establishing a cooperative research centre
in association with the Desert Knowledge Australia and the precinct. They were each
conceived of as part of a larger endeavourthat would work together to meetthe mandate
laid out in the legislation. As history has demonstrated, the Desert Knowledge Cooperative
Research Centre was able to generate enough finance and ideas to be able to set out on its
own and the optimistic intentions of a research-based contribution to the partnership were
not realised. Not only does the Desert Knowledge Foundation demonstrate the statutory
corporation's preoccupation with seeking out new sources of funding but also the
development of a dedicated source of empirical research to inform the strategies guiding
Submission by Desert Knowledge Australia to the strategic review of DKA, p. 37
Desert Knowledge Australia Annual Report 2005 to 2006, p. 6
DKA transformation plan 2013-14, pp. 5-6
DKA Interim Board meeting number one minutes, p. I
Draft Submission by Desert Knowledge Australia to the strategic review of DKA by its Minister, p. 34
12Strategic Review of Desert Knowledge Australia - January 2014
Desert Knowledge Australia's programs as envisaged in the original optimistic planning
phases.
Societies of Participants and members have not been substantially achieved. There is
virtually no reference to the societies until very recently in Board minutes. The Interim Board
approved using the Desert Knowledge Australia mailing list as the Society of Participants. "
During the course of this review, three different versions of the Societies of Participants were
found. Each included the mailing list and then added, variously, the Desert Knowledge
Precinct Occupants", the members of Lhere Artepe or the Commonwealth and WA, SA, Qld
and NSW Governments. " The most positive descriptions of the concept of the societies
ranged from 'a pain in the burn' to 'wildly utopian'. While the intention to draw a range of
interest groups into the governance activities of Desert Knowledge Australia was recognised,
the solution contained in the existing legislation has proven to be impossible to implement in
any meaningful manner. The resolution of this rather clumsy engagement mechanism's
difficulties will require legislative remedy.
The Indigenous Education and Employment Taskforce, established in early 2006, came
about as a result of "a conversation between the Director of the Central Land Council and
the Chair of Desert Knowledge Australia"" and meets aboutfourtimes per year. " It has
accessed $295,000 from a variety of institutions in order to facilitate the following:
introduction of the A1ice Springs Partnerships for Success and Girls at the Centre
programs in Central Australian high schools
commissioning 'What's Your Dream?' aspirational media campaign that ran in 2008-
09
establishing Ajice Career Connections, a website aimed at building links between
school students and employers
the 2011 A1ice Springs National Aborigines and Islanders Day Observance
Committee Awards.
Many of those consulted are of the view that this task force, although well-intentioned, has
demonstrated little original thinking, has imported knowledge from other jurisdictions that
replicates existing or previously attempted programs and supported an awards program that
actually diverts education funds from students' The website is effectiveIy useless. When
accessed in December 2013, it listed a single employment vacancy from 2011 for a
childcare position and the business list was only sparsely populated. There is no evidence of
increased employment that is attributable to this initiative.
It is impossible to determine the exact roles that have been played by Desert Knowledge
Australia and the Indigenous Education and Employment Taskforce in any of these activities
and there appears to be no ongoing or substantial reporting on the original goal"to achieve
demonstrable improvements in education, training and employment outcomes for local
Aboriginal people"" from this:
26
Desert Knowledge Australia interim Board minutes meeting 2, 30 and 31 March 2004, p. 4
Verbally reported during a visit to the Desert Knowledge Precinct.
'' Desert Knowledge Australia Board meeting number 37 minutes, p. 4
'' Indigenous Education and Employment Taskforce: a brief overview January 2014, p. I
''htt :// desertknowled e. comau/Our-Pro rains/Other- roects/Indi enous-Education---
Em 10 merit-Taskforce
Desert Knowledge Australia Annual Report 2007-2008, p. 8
13Strategic Review of Desert Knowledge Australia - January 2014
Informal coalition of parties committed to change. Each party is independent,
willing to work with other parties, is willing to take into consideration other parties'
interests, and is bound by no obligation, other than to the commitment to
cooperate and contribute to the greatest extent possible. "
The current initiatives of the taskforce include further sponsorship of the A1ice Springs
National Aborigines and Islanders Day Observance Committee Awards, an Indigenous
Mentoring Group that is preparing a handbook for employers and another website, a 'pitch'
for a National Centre of Indigenous Arts and Culture and an Indigenous Educators Group
who are developing a message about Indigenous education aimed at politicians and
bureaucrats. " These activities bear little relationship to the original goals of the taskforce
listed above and demonstrate a recurring pattern of policy drift and unclear strategic
direction. For example, due to the absence of a formal relationship between the Centre for
Remote Health and Desert Knowledge Australia, important empirical information contained
in research reports such as Youth programs in remote central Australian Aboriginal
Communities (Lindeman, Flouris & Lopes 2013)is not used to guide the work of the Desert
Knowledge Australia Indigenous Education and Employment Taskforce. There is a similar
disconnection between the Taskforce and the majorresearch work in pathways to
employment, remote education systems and investing in people being undertaken by Ninti
One programs
This loss of policy motivation and strategic concentration seems a rather inevitable outcome
of Desert Knowledge Australia's "very broad mandate that is open to interpretation and
emphasis"." The following three major outcomes/deliverables arise from the absence of
strategic direction and theoretical innovation that portrays the potential positives of the
desert environment as originally conceived. These programs use a very traditional approach
to identifying and creating problems in forms that are amenable to government action -
either directly or by establishing arm's-length bodies to undertake the work required to
resolve the issue (Bacchi 2009). They also reflect a substantial philosophical and theoretical
shiftfrom a focus upon the positive potential of remote knowledge and experience to an
intellectually unadventurous and typically Australian approach as described by Colebatch
(2006, p. I) - "what is the problem and what is government trying to do to address it?"
Desert Leadership Programs have received financial support of $911,500 since their
commencement with a week long program for 23 National Australia Bank (NAB) executives
in 2006-07. This relationship with NAB continued until 2012 and has spread awareness of
the Northern Territory and Desert Knowledge Australia throughout corporate Australia as
these individuals have moved into different companies. Desert Knowledge Australia was
paid a flat fee of between $15,000 and $20,000 to facilitate each NAB session. In 2009-10,
the program added a heavily sponsored two year course known as the Ajice Springs Desert
Leadership Program. In the following year an Ajice Springs Youth Leadership Program
focused upon four secondary schools was included and this has run two sessions. The Allce
Springs Desert Leadership Program was reconfigured to a one year program in its second
Indigenous Education and Employment Taskforce: a brief overview January 2014, p. 2
Indigenous Education and Employment Taskforce: a brief overview January 2014, p. 2
Draft Submission by Desert Knowledge Australia to the strategic review of DKA by its Minister,
p. 34 revised version in personal communication 17 January 2014
14Strategic Review of Desert Knowledge Australia - January 2014
iteration in 2011-12 and a new variant has emerged in 2012-, 3 called Desert-City
Connections with a target group of corporate clients. At leasttwo dozen 'partners' and
sponsors have been listed as contributing to the operations of the various sub-programs and
appear to have provided the operational budget. It is noticeable that few of these 'partners'
maintain a long term relationship with Desert Knowledge Australia. TIO is currently funding
the leadership programs through an annual grant of $100,000.
In typical Desert Knowledge Australia style, it is difficult to clearly describe what it is that this
suite of activities actually accomplishes as reference to the individual sub-programs
frequently joins disparate parts together. There is no apparent mechanism in existence to
use the alumni of the programs to promote the Northern Territory and its aspirations.
Similarly, even though the participants dedicate significanttime to project work, there is no
evidence that any of the projects have provided formal knowledge or research outcomes that
have been converted to a useful socio-economic purpose. "
While these leadership programs are possibly Desert Knowledge Australia's best known
service, in fact, for many Ajice Springs people, it is the only thing that they can attribute to
the organisation. The experience of being on the program is highly valued by those who
have participated. However, more experienced people noted that the actual contentis
imported into the desert environment and has been described as 'standard Harvard
Business School' or even 'neoliberal'. Some feelthatthe operation of the program is 'flawed'
because it relies too heavily upon 'ticking boxes' to demonstrate achievement. Strategically,
the move by Desert Knowledge Australia into leadership (in response to a perceived
problem of a lack of leadership) was very easy and seductive because it is a lazy policy
proposition. Like training, it is very hard to mount an argument against having better
leadership. Clearly, the Desert Knowledge Australia Act makes no reference to leadership as
a function forthe corporation although there is reference to training.
In addition, while the continual references to 'unique intercultural' characteristics of the
programs may withstand scrutiny in the local community context; they are difficult to sustain
at the national level. For example, Corporateconnect. AB operated by David Liddiard and
Andrea Harms is tightly focused upon working with corporate executives to increase their
capacity to engage with Indigenous Australians with a focus upon employment outcomes"
as well as many other examples that render claims of 'unique intercultural' questionable. "
Repeated references were made to a perceived weakness of these leadership programs
being the lack of engagement of Charles Darwin University and Batchelor Institute of
Indigenous Tertiary Education.
remoteFocus has attracted $1,732,000 in funding from a diverse range of organisations
including Rio Tinto, BHP-Billiton, Rio Tinto Aboriginal Fund and the Western Australian Local
Government Association in the firstinstance. " Further funding was received two years later
'' Desert-city Connections:intercultural leadership and learning, p. 2
36 htt ://WWWCcab. net. au/Cor OrateCOnnect AboutUs
'' personally known to the reviewer include Dare to Lead and the involvement of May O'Brien and
Joe Ross from WA, Enterprise and Career Education Foundation programs and the Community
Matters module of the mental health resource for secondary schools Mind Matters produced as a
result of close involvement of many key non-Indigenous educational leaders and Indigenous leaders
including current Federal MP, Ken Whyatt.
'' Desert Knowledge Australia Annual Report 2007-2008, p. 9
15Strategic Review of Desert Knowledge Australia - January 2014
from the Australian Government and the Pilbara Development Commission '' This program
exemplifies the major departure from the original focus upon a special desert knowledge that
could be harnessed for positive impact across a range of economic and social fields
remote Focus is driven by two considerations. The first is a desire to critique government
while the second resorts to a very familiartechnique of creating a problem for government to
resolve. No longer is the desert considered in a tough but positive light. The socio-economic
status of remote Australia is now described as being in "grave circumstances","in crisis" and
even as having the characteristics of "a failed state, ,.'0
According to the annual reports from 2007-2008 onwards, it appears that the main activity of
remote Focus has been the convening of numerous meetings, workshops, consultations,
presentations, dialogues and conversations resulting in the series of anecdotal exemplars
published in Fixing the hole in Australia's heartland. ' how government needs to work in
remote Australia. The set of proposals contained in that document pay minimal attention to
the extensive literature on public policy implementation, social control and change in favour
of "negotiated compacts" based upon existing governments redirecting significant levels of
authority and funding to other, cross-jurisdictional bodies (Walker, Porter & Marsh 2012, p
63)." The strong focus upon public governance (particularly to do with new public
management and neoliberalism)tends to lead to an intellectually impoverished discussion
and severely constrains consideration of genuine innovation. These are not new ideas as
demonstrated in the local government and self-management paper prepared forthe Royal
Commission into Deaths in Custody (Gerritsen 1990) and previously known as devolution
Currently, Desert Knowledge Australia staff are 'meeting with' a variety of organisations
associated with the Ngaantjatjarra Lands in Western Australia in a bid to "develop and
assess the implementation process around remote Focus and to evaluate
recommendations of the remote Focus report"." The traditional owners of this region have
a long and close association with the Chair of Desert Knowledge Australia who dealt with
this matter as a conflict of interest at Board level discussions by removing himselffrom the
meeting. While Desert Knowledge Australia describes this activity as its "first 'fee for service'
endeavourin the field of remote Focus"" the Australian Government funding body is quite
explicit that their contribution is a one-off grant
Regardless, remote Focus is yet another Desert Knowledge Australia group of self-selected
and self-referential persons who intend to "act as the interface between government and the
community" where they will"co- design the new reality and provide a perpetual petition for
change". Telling Iy, the 2013-17 strategic plan points out some serious structural issues that
need to be resolved aboutremoteFOCUS
. There is a need to clarify ownership. Is Desert Knowledge Australia facilitating a
multi-stakeholder program or does Desert Knowledge Australia own the program?
. Is remoteFocus a group of people?
Desert Knowledge Australia Annual Report 2009-2010, p. 9
Desert Knowledge Australia Annual Report 2007-2008, p. 9
The same ideas were also presented to the NT Government in 'Local government reform the case
for change to a regional authority with a supervising regional board model', p. 3
Desert Knowledge Australia 2012-2013 Annual Review, p. 13
Desert Knowledge Australia 2012-2013 Annual Review, p. 13
Remote Focus Strategic Plan Sept 2013-17, p. 3
16Strategic Review of Desert Knowledge Australia - January 2014
. Oris remote Focus a series of recommendations and research findings?"
In addition, Desert Knowledge Australia's continued promotion of remote Focus as "a
significant capability in government governance"" sits at odds with the Federal Coalition
Government's policy position of"a coordinated approach to policy implementation by the
various governments and tiers of bureaucracy" due to their lack of belief in "a quasi-regional
government authority" (Liberal Party 2013, p. 21)
The final two major recent initiatives of Desert Knowledge Australia have no identified
sustainable income sources and will rely upon finding organisations that are willing and able
to make cash contributions in eXchange for Desert Knowledge Australia's facilitation
Collective Impact had the dubious distinction of being the second most prominent
buzzword of the yearin the field of philanthropy during 2011
This term shows the power of a good buzzword to compel an idea. There's
nothing new about government, non-profits, the public and commercial
businesses working together. Butthe phrase "collective impact, " coined by the
prominent philanthropy advisers Mark Kramer and John Kania, helped focus
attention and raise the idea to prominence again (Bernholz 2011). 47
This program typifies the 'standard operating procedure' of Desert Knowledge Australia and
its inability to resist buzz words and phrases followed by an uricritical adoption of these to
then render simple concepts complex and make them difficult forthe community to
understand. The single activity operating under this program (Early childhood development
pre-birth to four years of age) has an anticipated expenditure of about $100,000 which is
currently receiving about $60,000 from 4 of 11 organisational participants and being
supported by $40,000 of Desert Knowledge Australia's 'pool of accumulated cash funds'. A
second collective was commenced but has ceased operations for financial and operational
reasons on the part of members
Desert Digital Futures
Desert Knowledge Australia has had a long-standing interest in the use of modern
information and communications technologies to better provide products and services to
regional and remote communities of the arid zone. In keeping with its role of encouragement
and facilitation it uses Desert Digital Futures, in yet another display of making the simple
complex, as an umbrella for convening the Broadband forthe Bush Alliance. This facilitation
is funded by other members of the alliance contributing enough cash to employ a person 2
days per week and cover some senior executive time in order to influence the direction and
reach of the National Broadband Network in desert Australia. The major activities have
included a series of meetings, building the membership to 13 organisations and advocating
for increased connectivity through visits to Canberra-based politicians, providing written
submissions and linking the group through two virtual meeting place gatherings. " The future
activities of this program are subject to the continued funding from members of the
Remote Focus Strategic Plan Sept 2013-17, p. 3
Submission by Desert Knowledge Australia to the strategic review of DKA, p. 29
The example described by Kramer and Kania dealing with school education in Cincinnati, Ohio is
well known to the reviewer in a professional sense and having visited the activity alleast six times in
the past eight years. Simply, the 'collective impact' described by the authors is not as it is seems
Desert Knowledge Australia 2012-2013 Annual Review, p. 7
17Strategic Review of Desert Knowledge Australia - January 2014
Broadband forthe Bush Alliance. The exemplar behaviour is the absolute opacity related to
who or what is conducting this lobbying effort - is it Desert Knowledge Australia; something
called Desert Digital Futures or the Broadband forthe Bush Alliance? Key questions include
who knows and, more importantly, who cares?
A related project, the Desert Knowledge Commons" has not been able to be implemented
It is believed by a number of persons associated with Desert Knowledge Australia that the
rapid rise of social media and better communications technologies worked againstthe
success of this idea
This interest in technology is also subject to the use of buzz words and capacity to turn the
simple into the complex with the "virtualis ation of Desert Knowledge Australia" being used to
describe the development of a new website, customer relationship management system and
the automation of some office functions. 50
In summarising this section, Desert Knowledge Australia has been very busy overthe past
decade. However, the future is difficult to predict given the lack of a coherent guiding
strategy, the low priority given to the formal production and dissemination of useful
Knowledge through the standard peepreviewed publications process and the mendicant
nature of the corporation's approach to project establishment and management
In the consultations about outcomes, a commonly expressed view opened more than half of
the discussions - paraphrasing - "I really don't know whatthey do". This was most
frequently followed by a virtual shopping list of activities that Desert Knowledge Australia
"should" be doing. Every single person knew aboutthe organisation and that it had a goal of
doing good things
This suggests that there is significant brand value and recognition. The development of a
modern message describing the achievements and, more importantly, the future direction of
the corporation can be used to reflect positively on the Northern Territory Government's
support for regional and remote areas while providing a cost effective way to engage a
variety of interests with the current priorities of government
Desert Knowledge Australia Annual Report 2010-2011, p. 6
Desert Knowledge Australia annual reportforthe financial year ended 30 June 212, p 5
18Strategic Review of Desert Knowledge Australia - January 2014
Return on Investment to the Northern Territo Government
The assumptions that are used in the calculation of the financial return on the 10 year
investment of Northern Territory Government funds are detailed in the section dealing with
Directlmpacts on Employment and Economy commencing at page 35 of this review while
the financial data is provided in Appendix Six.
In considering return on investment attributable to the operations of Desert Knowledge
Australia, the Northern Territory Government has invested just under $9 million of
operational funding into Desert Knowledge Australia that has resulted in over $130 million of
economic activity overthe decade as expressed in 2012 dollars. This gives an overallreturn
on investment of $14.60 for every Northern Territory Government dollar allocated to Desert
Knowledge Australia.
There are strong feelings and quite divergent opinions on how much Desert Knowledge
Australia contributed to the development and eventual success of the A1ice Solar City
program. On the balance of views of those who were consulted, the minutes of the Interim
Board of Desert Knowledge Australia" and the Desert Knowledge Australia Annual
Reports"from that time, there is little doubtthatit was the same group of people and
organisations who were responsible forthe creation of Desert Knowledge Australia, the
successful application forthe Desert Knowledge Cooperative Research Centre and what
became the A1ice Solar Cities program (with its roots being in the "Desert Knowledge Cool
Community", the "Technical Solutions Knowledge Cluster" and "Towards a Solar Region"
activities"). On the other hand, the A1ice Solar City 2008-13 Final Report" does not mention
Desert Knowledge Australia explicitly but does acknowledge the contributions of a senior
staff member from Desert Knowledge Australia. As with many situations, taking a longer
term view makes it likely that both claims are correct. The A1ice Solar City program would not
have eventuated withoutthe early efforts of Desert Knowledge Australia while the final report
reflects more recentrelationships and day to day management of the program.
With the inclusion of the whole $93 million economic contribution to the Northern Territory
from the A1ice Solar City program (Gerritsen, Zeng & 0'Leary 2012, p. 23)into the
calculation of a return on investment into Desert Knowledge Australia and adding the
Northern Territory Government's increased funding of $2.3 million allocated to the A1ice
Solar City program, the rate of return increases to $19.90 for every dollarfrom the Northern
Territory Government. Again, refer to Appendix Six for details.
Some of those who were consulted feltthat Desert Knowledge Australia had generated
significant'intellectual property' that was of value to the Northern Territory Government.
However, when closely questioned as to the nature of this asset, only general responses
could be provided and it transpired that this 'intellectual property' was not recorded but
resided 'in the heads' of various staff members based upon their experiences. There is little
evidence that this 'intellectual property' can be identified and packaged in a saleable form
nor who or whatthe market might be forthis property.
'' Interim Board meeting number seven minutes 2 February 2005, pp. 4-5
Desert Knowledge Australia Annual Report 2004-05, p. 7
' Interim Board meeting number two minutes 30-31 March 2004, p. 2
''htt .11www. allcesolarcit .coin. au/sites/defaulUfiles/Allce Solar Cit Re ort 2008-
2013%20FINAL%20for%20web of
19Strategic Review of Desert Knowledge Australia - January 2014
As mentioned previously, the brand Desert Knowledge Australia is widely recognised and
associated with good intentions Of not always outcomes). If a new and modern message
could be associated with this brand that was more aligned with Northern Territory
Government existing and emerging priorities, there is some financial advantage when
compared with starting an entirely new campaign or organisational unit
Overall, Desert Knowledge Australia has achieved one of the original goals of providing a
non-traditional stimulus to the Central Australian and Northern Territory economy even when
conservative assumptions are applied to the corporation's expenditure patterns
20Strategic Review of Desert Knowledge Australia - January 2014
Governance Arran ements of DKA
The affairs of Desert Knowledge Australia are to be conducted by a Board as provided for in
Part 2 Section 8 of the Desert Knowledge Australia Act 2003 (Northern Territory of Australia
2003, p. 6). Part 3 of this Act describes the administrative procedures that are to guide the
Board's operations including the provisions in Section 9 forthe Minister to give written
directions to the Board (Northern Territory of Australia 2003, p. 6). There is nothing
remarkable or unusual aboutthe Board and its governance responsibilities as the provisions
in this act are very similar to those provided for in legislation for other public good style
organisations such as the university, colleges or other institutes
Governance in the firstthree years (2003-05) following the formal establishment of Desert
Knowledge Australia was provided by an Interim Board with three members. A full Board of
11 members was established in early 2006 and the number of members has steadily drifted
downwards towards the minimum of 5 provided for in the legislation. "
Over the past decade, the Board's relationship with the Northern Territory Government has
moved from close to distant. It would appearthat a loss of political connection commenced
in the Labor Government from about 2008-09 when the originally promised review of the
Desert Knowledge Australia Act was to be undertaken by the Department of Chief Minister at
the direction of Cabinet, but for reasons that are not clear, the matter was dropped after an
extended period of discussion. " The Board believes that a number of attempts have been
made to re-engage with the current Country Liberal Government with limited success
Regardless, in terms of governance, the now quite long-standing estrangement between the
Board and the owner has allowed for serious policy drift and a lack of direction on the part of
the Board of Desert Knowledge Australia and a reduction of program options and responses
on the part of the Northern Territory Government
While the following observations do not necessarily apply to all Board members at alltimes,
general trends are evident. The Board is almost entirely self-referential. It is a closed shop of
like-minded persons with the inevitable result of cognitive narrowing - they see less and less
better and better. The nominations and appointments to a representative-style board are
likely to point to a misalignment in the legislation and contemporary good governance
principles. The Societies of Participants may not always have the best interests of Desert
Knowledge Australia in mind. A number of unsustained attempts were made at Board level
to employ widely accepted good practice in terms of drawing up a skills matrix and the use of
committees. For example, an audit and risk committee was established in 2008, butthere is
no evidence of the committee meeting or furnishing regular reports to the Board. " In fact,
the Auditor-General's annual audit of the Desert Knowledge Australia financial statements
make repeated reference to the factthat"DlYou can also read
