CORPORATE PLAN 2021-2022 - Transparency Portal
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CORPORATE PLAN 2021-2022
Introduction Leonie Taylor, Chair We, as the accountable authority of the Army and Air Force Canteen Service (AAFCANS) present the 2021-22 AAFCANS corporate plan, which covers the periods of 1 July 2021 to 30 June 2025, as required under paragraph 35(1)(b) of the Public Governance, Performance and Accountability Act 2013. Signed on behalf of the Army and Air Force Canteen Service Board of Management. Leonie Taylor Chair 2021-22 corporate plan Do Not Print or Distribute Page 1
Who are we? About us The Army and Air Force Canteen Service (known as AAFCANS) is a self-sustaining ‘not- for-profit’ corporate Commonwealth entity originally established in 1915. AAFCANS is administered under the Army and Air Force Canteen Service Regulation 2016 and the Public Governance, Performance and Accountability Act 2013 and operates within the Defence portfolio. AAFCANS is answerable to the Minister for Defence, the Minister for Defence Personnel and the Chiefs of the Army and Air Force. AAFCANS is a Commonwealth statutory authority formed to provide goods, facilities, and services to or for the entertainment and recreation of designated members of the Defence community. The Commonwealth Government owns AAFCANS through the responsible Minister, the Minister for Defence Personnel. Our Stakeholders 2021-22 corporate plan Do Not Print or Distribute Page 2
Key Activities
Environment
Current Services responsibilities and accountability for each
provision of service.
Services provided by AAFCANS are designed to
enhance the living conditions and social Whilst messes on base have always provided
environment of Army and Air Force members, meals at subsidised prices, they are increasingly
their dependants and other persons employed providing a range of similar products and
in, or in connection with, Army and Air Force services including convenient Grab & Go
bases. options.
At the end of June 2021, AAFCANS delivered Similarly, offices and break areas operate
services on 27 bases through a variety of automatic coffee machines and sell charity
facilities including canteens, kiosks, mobile food confectionary. These developments are
vans, convenience stores, fuel stations and post mirroring some of AAFCANS’ offer. We expect
offices. that these developments will place increasing
pressure on our offer and revenue over time.
Additional services covering banks, barbers, dry
cleaners, mechanical workshops, post offices AAFCANS addresses this competition through
and clothing retailers were provided at various convenience and product and price
bases through Licensed to Trade agreements. differentiation. We look to increase our ability to
provide snacks, coffee and other products and
The vending program managed by AAFCANS is
services in more convenient locations across key
delivered on 34 bases and has an estimated
bases and in support of deployments and
value of $532,000 for the 2020-21 financial year.
exercises. Our methods of delivery expand
Each quarter the proceeds from this program
each year, adding satellite kiosks and mobile
are distributed to the Army and Air Force welfare
food van runs for service personnel on the larger
trust funds and unit social clubs.
bases. Whilst these initiatives benefit the
productivity of the Defence work environment,
This plan closes out our AAFCANS Strategic Plan
the increasing services impact operational
2018 – 2022. AAFCANS has successfully
costs.
implemented nearly all the strategic objectives
set out in this five year plan. Those that were not Our customers are time poor. Addressing this
implemented were set aside due to a lack of productivity issue is a basic tenet in our future
commercial success during trials. planning of our outlets and our service
throughout the period of this plan.
Prior to the conclusion of the 2021 calendar
We serve 29% of our customers between the
year, the Board will finalise the next five year
hours of 8.00am and 10.00am. Using research
plan.
and customer feedback, we have sought to
improve our business offer and time efficiencies
through customer flow, labour scheduling,
External Environmental Factors
enabling our managers, real time data to
External competition is evident at most bases enhance agility and a streamlined offer. The
immediately outside the base gates, and with aim is to boost efficiencies whilst maintaining
amenities provided by regimental trust funds healthy tasty food ‘on the go’ in a
(RTF) and social clubs. AAFCANS are supporting contemporary environment.
Army and Air Force’s work to align the base
AAFCANS aims to assist unit social clubs by
‘ecosystem’. The outcome will define
providing a compliant, competitive and
2021-22 corporate plan Do Not Print or Distribute Page 3
convenient supply chain in support of their These new technologies assist AAFCANS to serve
funds. our customers with the right product at the right
time quickly.
AAFCANS are working directly with Army and Air
Force through a Liaison Officer (LO) to improve A new coffee supplier with strong ties to the ADF
our knowledge on military activities. Historically, was appointed in October 2020. Full
Defence deployment, training and exercises implementation of the new offer was
constantly change our customer base which completed across our network at the end of
hasmade it difficult to forecast our business. December. Our focus for 2021-22 will be
Outlets at bases where troops are drawn for ensuring a quality consistent coffee product for
operational deployment overseas experience all outlets through overview and increased
significant fluctuations in trade, profitability, and training.
casual staff numbers. Defence infrastructure
AAFCANS continue to improve our planning on
and policy decisions may also impact AAFCANS
bases through increased communication with
operations. With access to planned shifts in
Defence. Better planning will ensure we can be
demographics, AAFCANS will be better placed
more responsive to the changes to base
to understand these movements.
demographics and activity of personnel as well
The COVID-19 pandemic continues to directly as the development of new facilities. With the
impacted AAFCANS trading, not only through advent of the COVID virus, it is essential our
State and Territory shutdowns and restrictions service level and product offer are flexible and
but also as a result of the front-line support scalable, yet tailored to our customers.
Defence provides across Australia. As a
Lessons learned from a base, service or product
consequence, our plans for the coming year
are easily replicated in other outlets: a key
and beyond remain flexible and subject to
benefit in our broad footprint across Australia.
change.
Strong focus remains on our Work Health and
Safety (WHS) and Food Safety programs.
Internal Environmental Factors
Significant improvements have been
Our People and Culture
successfully completed in the operational and
administrative functions of AAFCANS. Cloud- Team members are our most important asset.
based solutions for point of sale, information and We strive to ensure that our Venue Managers
communications technology (ICT) infrastructure, have the tools available to react appropriately
intranet, website, safety and human resource and make the necessary decisions to manage
software are all being utilised. their facilities. All bases are different. Our Venue
Managers are able to tailor our products, align
With the full implementation of our point of sale
hours and fluctuate team member numbers,
system (Bepoz) some AAFCANS outlets now offer
ensuring that we provide our best service to our
online ordering. As the system is fine-tuned,
Defence partners.
additional key locations will be added to the
service. AAFCANS continues to evolve our HR systems.
The recent introductions of our online HRIS
The new app-driven loyalty platform launched
system Employee Connect (EC), Ask AVA
in July 2020 equips AAFCANS with a
(AAFCANS Virtual Assistant) and our online
contemporary method for customer
training platform LITMOS are all available to our
engagement, providing access to the online
team members. The recent upgrade of our time
ordering portal, links to local canteen menus,
management system to the Human Force app
trading hours, google maps and contact
allows team members to accept posted shifts,
information. The platform offers rewards for
see real time rosters and sign in and sign out
brand loyalty, special member promotions and
seamlessly.
a direct feedback channel for two-way
customer communication. The digital wallet The revamp of SharePoint allows our Venue
equips app members with a cash-free card-free Managers and team members to have a one
method of commerce. This new platform has stop shop for all processes, polices and
been specifically developed for AAFCANS with guidelines. It is a communication tool for all the
ADF as a primary focus. team, providing regular updates to inform all our
members.
2021-22 corporate plan Do Not Print or Distribute Page 4
We recently launched our Reward and support to Regimental Trust Funds in PGPA Act
Recognition program. This encourages the compliance along with ease of access,
nomination of a team member as a match to improved capabilities and supply opportunities.
one of our values. This program was one of the These strategies are in their infancy and will
main requests from our recent engagement develop over the coming year.
surveys.
Our Strategic Plan 2018-2022 will be completed
During the pandemic we the initiated an in this year in focus, with all objectives and
Employee Assistance Program. This is free and strategies met or tested and removed. Our
available 24 hours a day, seven days a week. It Board and management team will meet in
ensures our team have someone to talk to in October to develop the strategic plan for the
difficult times. next five years to 2026.
Our key people focus within AAFCANS remains
the development of our internal team, utilising
Financial Performance
our Venue Managers, subject matter experts
(SME) and LITMOS to advance of our skills and AAFCANS are required to be commercially self-
involve the team in our ongoing strategy. sustaining. Our net surplus for the financial year
2020-21 is forecast at $589k excluding the Job
Keeper funds below. This was heavily impacted
Sustainability to Support Our Purpose by COVID-19 and the March 2021 floods in Qld
and NSW.
AAFCANS remains highly focused on
introducing new technology and streamlining A miscommunication in eligibility for the federal
processes, whilst keeping lessons learned Job Keeper scheme in the initial stages of
throughout our regeneration at front of mind. COVID-19 resulted in AAFCANS incorrectly
Since 2013 the organisation has returned a paying and then claiming employee wages in
surplus each year, even when faced with a 2020. This claim was reviewed by the Australian
global pandemic. Changes to improve and Tax Office (ATO). After considering the
expand our services and improve our efficiency evidence and purpose of AAFCANS, the ATO
and cost base are aimed at AAFCANS determined that funds claimed were to be
continuing to be self-sufficient, thereby enabling retained by AAFCANS. This provided welcome
ongoing reinvestment that enhances support to revenue of $927k to our result in the 2020-21
base welfare through modern and inviting financial year.
facitlities, maintaining lower retail selling prices
These funds have been effectively quarantined
and being able to contribute to the local base
by the Board and management to address the
communities.
improvement of outlet environments for team
Balancing our operating results with our members and customers through capital
commitment to our purpose, we are challenged projects and engineering safety controls.
with:
With COVID-19 outbreaks occurring across the
improving ADF productivity by country, the ongoing impact of regional
expanding our services to be shutdowns on our forecast result for 2021-2022
convenient to our customers which in remains difficult to reliably ascertain.
turn increases our cost of operation;
Any operating surplus will be invested back into
in line with Army and Air Force’s
our business to improve our service and into the
expectation, providing welfare support
on-base facilities, increasing our sustainability
to personnel on exercise/deployment
and improving the Defence environment.
at little more than break-even to
enhance the ADFs away-from-home
experience;
operating on small bases that are not
positive contributors.
In addition to our internal sustainability, Defence
and AAFCANS are working together to improve
support to the base ecosystem from a welfare
and amenity perspective, including potential
2021-22 corporate plan Do Not Print or Distribute Page 5
Capability
Workforce Planning while allowing greater scalability, security,
operational efficiency and agility.
Our current workforce modelling is a continual
process to align the needs and priorities of our Our capability is focused on:
organisation with those of our workforce.
Through enabling our teams, we aim to ensure cloud-based electronic Point of Sale
that the wishes of our customers are met in system (ePOS)
tandem with the regulatory and strategic cloud-based Human Resource Information
objectives of AAFCANS. System (HRIS)
Retail Electronic Food Safety System
Capital Investment Strategy (REFSS)
AAFCANS conducts its operations from Defence SharePoint online including Ask Ava
facilities. Supplementary Defence facility Microsoft O365 Office
upgrade funding has ceased. To continue to cloud-based ‘Infrastructure As A Service’
achieve our purpose, AAFCANS must be self- (IAAS) model
sustaining. Surplus funds from trading are AAFCANS APP and Online ordering
presently directed toward facility improvements Our cloud-based sales ePOS software provides
in line with our purpose to provide enhanced greater reporting and business intelligence in a
services to Army and Air Force personnel. more efficient timeframe as well as reducing
Pending financial performance during the manual processes and giving an improved
pandemic, the following capital projects are perspective on product performance and sales.
being considered by AAFCANS, and will It also introduces a valuable reduction in
proceed on a case by case basis: maintenance and improved system reliability.
Latchford Barracks canteen refurbishment The HRIS offers greater integration between the
– expected completion not yet payroll, time and attendance systems and other
determined due to COVID issues. human resource (HR) functions. Improving
4 x 2WD Mobile Food Vans (MFVs) and a efficiency and accuracy on HR processes allows
mobile kitchen trailer the People & Culture team to focus on
Kitchen and front of house equipment supporting the people within the entity.
upgrades and innovations The REFSS retail electronic food safety system
Puckapunyal grocery store renovation along with our OEP Operations excellence
Harry’s canteen, Lavarack upgrade audits assist our operational staff ensure a clean
For new facilities and upgrades, a contractor and contemporary environment.
undertakes the physical fit-outs, however The adoption of cloud applications like
AAFCANS project manages the overall SharePoint online and Microsoft O365 allows a
investment internally. greater ability to communicate across the entity
The MFV project is managed by an internal as well as increased capability in information
appointee. The vans/trailers are constructed by sharing and group collaboration.
expert contractors. IAAS removes the burden of server hardware
ICT Capability ownership, allows redundancy and growth and
provides the IT team the ability to focus on client
AAFCANS information and communications services and improving software systems.
technology (ICT) infrastructure now operates on
a cloud-based model. This has provided
AAFCANS with a reduction in long-term ICT costs
2021-22 corporate plan Do Not Print or Distribute Page 6
Capability Snapshot 2021-22 corporate plan Do Not Print or Distribute Page 7
Risk
Due to the nature of our business with a high Key Business Risks/Opportunities
focus on food service, AAFCANS has historically
AAFCANS has set five criteria for setting its risk
held a conservative approach in terms of
management priorities.
managing risk. However, with a renewed focus
on growth, our appetite has expanded to • Risks affecting the safety, security and health
embrace a higher level of risk within the of AAFCANS’ personnel and visitors to its
sales/opportunity spectrum. premises;
AAFCANS aims to engender and foster the • Risks and opportunities affecting AAFCANS’
ownership of risk identification and reputation, ability to perform or trust in the
management in all staff and to encourage organisation;
proactive initiatives in all aspects of control and
• Risk and opportunities affecting AAFCANS’
review.
management of and accountability for
Framework organisational performance, including its
service delivery obligations, its regulatory
The Board is the ‘accountable authority’ for
framework and business relationships;
AAFCANS. The Board has delegated the
oversight of risk management to the • Risks and opportunities affecting AAFCANS’
Governance and Risk Committee. The performance against strategic priorities; and
Managing Director champions all aspects of
• Risks and opportunities affecting the integrity
governance and risk management.
of AAFCANS’ decisions, processes and
AAFCANS risk framework clearly identifies our information.
strategic business drivers and objectives, their
Risks are controlled and mitigated through the
associated risks, how the business is managing
following plans and initiatives:
the risks and our final assessment of whether risk
is appropriately controlled.
AAFCANS maintains a suite of risk documents
which assist and inform all staff on our risk
management strategies.
Risk Management policies and
framework
Risk Management Plan Risk Register
Fraud Control Plan Fraud Assessment
Business Continuity Plan
Policy and Procedures WHS manual FSP manual
manual
Risk reporting
Job SOPs, newsletters, Checklists,
/incident notification
descriptions, fact sheets, signage, forms,
form and assessment,
code of training & induction schedules
internal audits,
conduct modules
business plans
2021-22 corporate plan Do Not Print or Distribute Page 8
Risk Profile Emerging Risks
Our board committees review our risks at their Looking forward and assessing our future
quarterly meetings. A breakdown of our operating environment, key emerging risks and
identified risks ratings shows the following: their related management are outlined below:
High risk 0 risk identified • Business continuity. With the recent COVID-
19 pandemic, the balance between
(rated 17 – 25)
financial management of the business,
Serious risk 1 risk identified service to our customers, and team members
(rated 12-16) welfare is a key morale consideration.
Moderate risk 11 risks being • Effective stakeholder relationships. Effective
monitored under our relationships with Ministers, Chief of Army,
(rated 5-11)
ongoing Chief of Air Force and stakeholders within the
improvement Department of Defence are key as
program AAFCANS’ position within the Defence
amentities ecosystem is maturing, along with
Low risk 14 risks being shifting responsibilities.. This is an emerging
(rated 1-4) continuously risk as the new structure and its reporting
monitored settles.
• IT Security. The increasing occurrence of
The serious risk identified relates to stakeholder cyber-attacks are a strong focus as global
expectations on our business. Presently our players look to gain any advantage.
agreement with Defence for the next five years
is under re-negotiation, with the new agreement
to remove key funding lines within our business.
As this will materially alter our operational
baseline, ensuring productive engagements
with our Minister and senior Defence leadership
is of high importance during this period of
adjustment.
2021-22 corporate plan Do Not Print or Distribute Page 9Cooperation
AAFCANS is highly reliant upon and directly Technology
impacted by the Department of Defence • Defence
specifically with the Australian Army and the
o Chief information Officer Group (CIOG) –
Royal Australian Air Force. Lines of cooperation network, telephone and security
and reporting occur at a number of levels within communications
Defence. o Australian Signals Directorate (ASD) –
security governance and updates
Closely assisting AAFCANS with its strategic
direction and communications are our two o Australian Cyber Security Centre – security
resources
military directors sitting on the Board, one
o Australian Security Intelligence
appointed from each service, Army and Air
Organisation (ASIO) – access to security
Force. updates
Recently, a Liaison Officer was appointed by the o Business and Governance Liaison Unit –
Army to more closely manage and facilitate our security reports
relationship with both Army and Air Force.
Managing Director and Board
Regular discussions with Defence and other
Government entities occur: Strategic and operational discussions with the
following personnel to ensure AAFCANS is
Operations meeting our partners’ requirements and
• Defence - Senior ADF Officers on each base AAFCANS purpose.
and their delegates, Base Service Managers • Defence
and other key personnel seeking feedback
o Minister for Defence Personnel
and service integration
o AAFCANS Advisory Committee (AAC)
chaired by the Deputy Chief of Army and
People and Culture attended by the Deputy Chief of Air Force
o Deputy Chief of Army and Deputy Chief of
• Defence - Estate & Infrastructure Group Air Force
(E&IG) on each base issuing Defence base o Senior ADF Officer on each base
passes o Director General Estate Service Delivery
• Comcare – WHS matters, insurance and
o Director of Hospitality, Estate &
claims Infrastructure Group
Finance Governance
Reporting financial and performance Ongoing communication regarding compliance
information regularly to associated government and guidance from the following entities:
departments.
• Defence
• Defence
o Office of the Minister for Defence
o Offices of the Minister for Defence and Personnel
Minister for Defence Personnel
o AAFCANS Advisory Committee (AAC)
o AAFCANS Advisory Committee (AAC) Secretariat
Secretariat • Department of Finance - Comcover
o Defence Finance Group insurance
• Australian National Audit Office (ANAO)
• Attorney-General’s Department
• Department of Finance
• National Archives of Australia
2021-22 corporate plan Do Not Print or Distribute Page 10Performance Measures
This matrix is designed to indicate which measures have a limited implementation period and which are
ongoing measures.
In October 2021, a new five year strategic plan will be created. Finalisation of the plan will occur over
the subsequent months. This new plan may impact the measures below.
To provide Defence members
with convenient access to
PURPOSE
quality food, beverage and retail
2021-22
2022-23
2023-24
2024-25
items, and support base welfare
Target Key Performance Measures
Competitive retail selling prices Benchmark retail selling prices
to our customers.
(RSP) against external target
market to show AAFCANS in the
bottom to mid quartile of coffee
sales prices and in the middle
quartile of snack item sales
prices.
Maintain a committed and o Team member retention rate
competently trained workforce of less than 38%, compared to
through team member an industry average of over
engagement. 40%.
Upgrade or establish at least two o Two facilities established or
retail facilities (including satellite upgraded.
kiosks and MFVs) each year. This
may be dependent upon
funding from Defence and
infrastructure processes within
E&IG.
Support Defence personnel with AAFCANS deploys on request in
canteen services on exercise support of at least 2 of the 3
and deployment when major exercises (Exercise Pitch
requested by Army and Air Black, Talisman Sabre and
Force. Hamel).
2021-22 corporate plan Do Not Print or Distribute Page 11Plan Implementation and Acronyms
Monitoring
The AAFCANS Board has the overall AAC AAFCANS Advisory Committee
responsibility for reviewing and evaluating the
AAFCANS Army and Air Force Canteen
implementation of this plan. The impact and
Services
success of the strategic initiatives are reviewed,
and priorities are re-evaluated throughout the ADF Australian Defence Force
year. Strategic planning will be conducted in EBITDA Earnings before Interest, Tax,
late 2021 to develop the next 5 year Strategic Depreciation and Amortisation
Plan. This will form the development of next
ePOS Electronic Point of Sale
year’s corporate plan. Corporate plan
objectives in various formats are discussed at FSP Food Safety Program
each Board meeting. The final corporate plan is FY Financial Year
sent to the Minister for feedback and approval.
HR Human Resource
HRIS Human Resource Information
System
Further Information ICT Information and
Communication Technology
For further information on the AAFCANS 2021-22 IAAS Infrastructure As A Service
corporate plan, please contact the Managing
IT Information Technology
Director, AAFCANS on (07) 3320 2649 or send an
email to cosec@aafcans.gov.au. MFV Mobile Food Van
Further information can be located on the O365 Microsoft Office 365
website www.aafcans.gov.au.
RSP Retail Selling Price
RTF Regimental Trust Funds
SADFO Senior ADF Officer
SOP Standard Operating Procedure
WHS Work Health & Safety
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