The release of the Measuring What Matters framework is a watershed moment for Australia. Australia's first national wellbeing model, and the broader project it's part of, have profound implications for the public sector.
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Five broad themes - health, security, sustainability, cohesiveness, prosperity - draw on about 50 indicators the Treasury will track.
The framework uses more diverse data to bring depth and resolution to the picture drawn by important and familiar indicators that track economic growth, employment, investment and inflation.
Australia's decision to join the plethora of democracies that harness powerful data in the service of living standards, community strength and environmental sustainability, is prudent and timely.
Those who doubt the urgency of this shift need only look to the report of the Royal Commission into the Robodebt Scheme for a glimpse of the harm a data-rich government can do when it is divorced from purpose and direction.
It is just one event in what PMC chief Glyn Davis described as "a year of shocks". The scathing findings of the royal commission reveal the ultimate shortcomings of a top-down focus on compliance that eclipses the needs of the people and communities our public institutions serve.
In May this year Sophie Howe, Wales' inaugural Future Generations Commissioner, outlined the importance of practical and cultural change in the public service as a cornerstone of the successful Welsh wellbeing approach.
Her John Menadue Oration outlined a national discussion that included 10,000 of Wales' 3 million citizens. This discussion distilled the country's collective aspirations into seven national goals and five ways of working. An activity like this would be a valuable way to develop future iterations of Australia's own approach.
The ways of working developed in Wales apply to both elected representatives and public officials, and they guide decision-making in the public service. This approach challenges public servants to consider the long-term implications of their decisions.
The Welsh approach prioritises preventative action to ensure public resources are not drained by the avoidable costs of remediating preventable harms. Involving citizens - beyond boilerplate consultation processes - in co-creating solutions is a key priority.
Public officials are encouraged to collaborate rather than compete. This brings fresh perspectives to previously siloed policy areas, and results in more innovative, holistic, and effective solutions.
Australia can incorporate these lessons in the way we implement our national wellbeing framework.
The Welsh experience is also consistent with research findings. An assessment of 21 global approaches over 50 years conducted by CPD for the Redefining Progress report found four success factors. Leading wellbeing approaches measure what matters, and they use the measurement data to guide decision-making.
They also embed the approach across public institutions, changing how they govern to build institutions that work for people, communities and the environment.
Finally, they build transparent assessment and reporting mechanisms to guide their progress, which ensure frank advice from public servants and robust debate among elected officials.
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The Measuring What Matters statement is a key part of upgrading Australia's public policy and decision-making toolkit. If the traditional economic indicators we have relied on are the street directory of public policy, approaches like these are the GPS.
The release of the national wellbeing framework provides an opportunity for Australia's public institutions - and the people within them - to make more informed decisions that reflect the needs of citizens. It is an opportunity to restore faith in institutions and bring us closer to the country we want for ourselves, our children and future generations.
- Andrew Hudson is the chief executive of the Centre for Policy Development, an independent policy institute that advances long-term wellbeing in Australia and the region.
