New CEO’s plan to streamline operations will cut costs and cut expenses

Posted March 30, 2018 09:13:11The Federal Government has announced a sweeping corporate restructuring plan to slash costs and streamline its operations to better compete in the rapidly changing global economy.

Key points:AAP chief executive officer David Shukman will be replaced by a new chief executive who will be in charge of the business’s business and corporate functions for the first timeEver since the financial crisis, corporate management has become more fragmented and difficult to navigateThe Government is also looking to cut costs by outsourcing some of the more complicated functions and tasks of the company to outside experts to help it better compete against its global rivalsEver since former chief executive John Dickson left his job in December 2016, the company has faced a string of organisational changes as its business has evolved.

The Federal Cabinet has also announced the appointment of former Federal Minister of Finance Michael McCormack to oversee the business, as well as to head up the Department of Communications.

Mr McCormack will also oversee the department’s business, communications and finance, and be responsible for the company’s operations, operations and operations consulting, and corporate governance.

He will be the first person in Australian business to hold these roles, and the first foreign-born to be appointed as a senior management officer.

“While the Government continues to support Australia’s global competitiveness, this Government is making significant investments to enhance its corporate structure and deliver on its long-term vision of the world’s most efficient, accountable, and innovative businesses,” Treasurer Scott Morrison said in a statement.

“Our Government will provide a new set of corporate structures, processes and structures to enable Australian companies to compete on the global stage.”

The announcement comes as the Government is looking to reduce costs by slashing costs by contracting out some of its more complicated business functions and activities, and outsourcing some business functions to outside organisations.

It is understood that Mr McCormack, a former FAS chairman, will be expected to work closely with Mr Shukam to create an organisational structure to help streamline the company and its business operations.

Mr Shukaman, a leading figure in the business and political worlds, has led the company since February 2018, after a two-year stint as the CEO of the Australian Broadcasting Corporation (ABC) and the New South Wales Premier’s Office.

The announcement also comes after the Federal Government announced the hiring of Mr McCormacks as chief executive of the ABC.

Mr McCullack, who is currently an associate professor at the University of Technology Sydney, will join the ABC’s Canberra bureau as the new chief of its corporate affairs.

“This is the right time to make the ABC more competitive globally and Australia is at the cutting edge of innovation,” Mr Morrison said.

“We know that in our rapidly changing world, our global rivals will need to adapt to our competitive and efficient business models and strategies.”

Having Mr McCormock as chief financial officer and director will provide further reassurance for the ABC, its staff, its investors, and customers that the ABC will be strong in the face of the global challenges ahead.

“The ABC will also be able to move more quickly and more effectively from the ABC to a new global news organisation, the ABC News, which is being launched in New York.ABC CEO Andrew Bolt said the announcement would also enable the company “to focus on its core business” and its “critical business and news business”.”

The Government will also give the ABC the right to hire as many of its senior executives as it likes from outside Australia, while also allowing the ABC access to the National Broadband Network.””

David has a deep track record of success, leading the ABC from its inception as an independent news organisation to becoming a world-leading broadcaster and one of the most trusted sources of information and insight on global affairs.”

The Government will also give the ABC the right to hire as many of its senior executives as it likes from outside Australia, while also allowing the ABC access to the National Broadband Network.

“Australia is leading the way in technology and innovation and it is imperative that the Government provides our companies with the resources to be able get the most out of our technological breakthroughs,” Mr McCormick said.


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