Alberta Motor Vehicle Industry Council Business Plan
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1 Business Plan Approved by AMVIC Board March 8, 2017
2 TABLE OF CONTENTS 1. INTRODUCTION LINKING BUSINESS PLAN GOALS TO THE STRATEGIC PLAN LINKING BUSINESS PLAN GOALS TO THE 2016 REPORT ON GOVERNANCE AND OPERATIONS BUSINESS PLAN GOALS DELEGATED ACTVITIES PERFORMANCE MEASURES THREE YEAR FINANCIAL PLAN... 11
3 1. INTRODUCTION The Alberta Motor Vehicle Industry Council, AMVIC, is Alberta s automotive industry regulator. AMVIC is an independent delegated authority and is accountable to the Alberta Government through a delegation agreement with the Minister of Service Alberta. AMVIC was incorporated under the Alberta Societies Act on February 12, 1999 as a not-for-profit organization for the purpose of administering motor vehicle industry regulations as outlined in the Fair Trading Act. Pursuant to section 136(5) of the Fair Trading Act, the Director of Fair Trading has delegated to AMVIC the powers, duties, and functions of the Director under the Fair Trading Act, the Automotive Business Regulation, the Cost of Credit Disclosure Regulation and the Internet Sales Contract Regulation, in relation to the regulation of automotive businesses. With respect to automotive businesses, AMVIC s powers duties and functions under the Fair Trading Act include: Licensing (businesses) and registration (salespeople) administration under the Fair Trading Act and the Automotive Business Regulation. Investigations, claims and enforcement arising from complaints under the Fair Trading Act, the Automotive Business Regulation, the Cost of Credit Disclosure Regulation and the Internet Sales Contract Regulation. Establishment and administration of the Consumer Compensation Fund. Establishment of educational programs for consumers and industry members in relation to automotive businesses. Two major activities took place during the last year that are reshaping AMVIC s business planning priorities. These two activities are as follows: The AMVIC board of directors approved a new Strategic Plan which refocuses AMVIC s strategic priorities, which in turn refocuses some of AMVIC s business priorities. George B. Cuff & Associates Ltd. delivered its report regarding AMVIC Governance and Operations (Cuff Report). This report provided several recommendations to make AMVIC more effective as a regulator. These recommendations have been accepted, in principle, by the Minister of Service Alberta and the AMVIC board of directors. Management is also supportive of the recommendations. The outcomes of these two activities are directed at refocusing AMVIC for the future and are the drivers and major focus of this business plan. 2. LINKING BUSINESS PLAN GOALS TO THE STRATEGIC PLAN In November 2016, the AMVIC board of directors approved the Strategic Plan (Strategic Plan). The Strategic Plan provides clarity that AMVIC s mandate is consumer protection. The Strategic Plan focuses on four main strategic goals to support AMVIC s mandate of consumer protection and improve AMVIC s effectiveness as a regulator. The four strategic goals and objectives are as follows: 2
4 Reform the governance model of AMVIC to ensure clarity of stakeholder expectations to enable a governing model of the board. Align stakeholders to the strategic outcomes AMVIC is seeking to achieve. Enhance the organizational capacity to become a full regulatory body. Enhance AMVIC s focus on consumer protection. Strategic Goal 1: Reform the governance model of AMVIC to ensure clarity of stakeholder expectations to enable a governing model of the board. Statement of intent: Given the increasing level of complexity, AMVIC s system of governance needs to be able to effectively reconcile multiple viewpoints of diverse stakeholders in policy direction, strategic monitoring and decision-making processes. Reforming the governance model of AMVIC is essential in order to address historical role ambiguity in the governance model. Business plan activities: Contract a governance coach to guide the board to: o Develop a contemporary governance charter outlining a new model of governance. o Engage stakeholders in the reform process. o Assist the board to conduct annual performance self-evaluations. o Coach the board on governance best practices. o Assist the board to set governance related learning goals. o Assist the board in designing a strategic monitoring system. Enhance communications and information with all AMVIC stakeholders including society member organizations, licensees, registrants, consumers and Service Alberta by: o Communicating the scope of AMVIC s jurisdictional authority. o Promoting AMVIC s consumer protection mandate. o Assisting the automotive industry to understand the legislative environment they operate in. o Making consumers aware of their rights and protections under the Fair trading Act. Strategic Goal 2: Align stakeholders to the strategic outcomes AMVIC is seeking to achieve. Statement of intent: AMVIC recognizes that there are many important stakeholders that influence decisions and are critical to the organization s success. These stakeholders include consumers, automotive businesses, salespeople, government and broad societal stakeholders. By continuing to align the needs and expectations of the stakeholders to the mandate and priorities of AMVIC, it will continue to build confidence in the mandate and functions of AMVIC among stakeholders of the automotive industry. Business plan activities: Position AMVIC as a trusted and respected regulatory body by: o Strengthening human resource assets by hiring new employees in areas that are understaffed and strengthening internal educational programs for employees. o Conducting a benchmark survey to determine consumer awareness and satisfaction of AMVIC. o Enhancing communications and information with all AMVIC stakeholders. 3
5 Engage in projects and initiatives that strengthen relationships with stakeholders and increase trust and confidence in the mandate, role and services of AMVIC by: o Enhancing communications and information with all AMVIC stakeholders. o Building relationships with consumer organizations, industry organizations and media in Alberta. Strategic Goal 3: Enhance the organizational capacity to become a full regulatory body. Statement of intent: AMVIC prides itself on the hard work and dedication of its people. The board, management and staff are passionate about what they do and are committed to providing exceptional service. By enhancing and redeveloping AMVIC s strategic monitoring system to reflect AMVIC s commitment to aligning stakeholders to the strategic intent and outcomes of the organization, it will demonstrate and validate AMVIC s ability to operate as a full regulatory body. In addition to the monitoring system, aligning the communication strategy of the organization to the complexity of the stakeholder environment is critical. Business plan activities: Enhance AMVIC s strategic monitoring system to provide stakeholders with the necessary information to support AMVIC s strategy and performance by: o Contracting a governance coach to guide and assist the board in designing a strategic monitoring system. Align AMVIC s communication strategy to the complexity of the stakeholder environment by: o Conducting a benchmark survey to determine consumer awareness and satisfaction of AMVIC. o Enhancing communications and information with all AMVIC stakeholders. o Building relationships with consumer organizations, industry organizations and media in Alberta. Enhance AMVIC s organizational capacity and organizational design to perform its services in alignment to its mandate by: o Strengthening human resource assets by hiring new employees in areas that are understaffed and strengthening internal educational programs for employees. Strategic Goal 4: Enhance AMVIC s focus on consumer protection. Statement of intent: AMVIC exists to provide consumer protection in Alberta s motor vehicle industry and build trust and confidence with the industry and government. AMVIC must continue to build awareness of its mandate and authority in efforts to safeguard consumers rights and concerns. In a world of increasing complexity, however, mandate clarity is critical to the efforts of aligning the multiple and diverse stakeholders to the role, focus, function and resources of AMVIC. Business plan activities: Enhance awareness building initiatives and strategies by: o Strengthening internal educational programs for employees. o Conducting a benchmark survey to determine consumer awareness and satisfaction of AMVIC. 4
6 o Alberta Motor Vehicle Industry Council Building relationships with consumer organizations, industry organizations and media in Alberta. Build understanding of AMVIC s role as a regulator by: o Communicating the scope of AMVIC s jurisdictional authority. o Promoting AMVIC s consumer protection mandate. o Assisting the automotive industry to understand the legislative environment they operate in. o Making consumers aware of their rights and protections under the Fair Trading Act. Empower consumers through education initiatives that increase awareness of rights and obligations in motor vehicle transactions by: o Promoting AMVIC s consumer protection mandate. o Making consumers aware of their rights and protections under the Fair Trading Act. o Building relationships with consumer organizations in Alberta. o Conducting a benchmark survey to determine consumer awareness and satisfaction of AMVIC. o Strengthening AMVIC s human resource assets by hiring new employees in areas that are understaffed and strengthening internal educational programs for employees. o Enhancing communications and information with all AMVIC stakeholders 3. LINKING BUSINESS PLAN GOALS TO THE 2016 REPORT ON GOVERNANCE AND OPERATIONS In August 2016, the Minister of Service Alberta appointed George Cuff to lead a review of AMVIC. In early December 2016, Mr. Cuff delivered his report on AMVIC Governance and Operations (Cuff Report). This report provided several recommendations to make AMVIC more effective as a regulator. These recommendations have been accepted, in principle, by the Minister of Service Alberta and the AMVIC board of directors. Management is also supportive of the recommendations. The following is a general summary of the recommendations from the report: Several recommendations concerning improving AMVIC s governance. Review current legislation and recommend changes: o Ensure businesses that should be licensed are required to be licensed. o Enhance consumer protection and level the playing field in the industry. Separate the role of the Director of Fair Trading as delegated from the role of the CEO by hiring a registrar. Appoint a part time board chair. Hire a human resource manager. Re-focus the relationship between AMVIC and Service Alberta. Review AMVIC s IT. Place an increased emphasis on alternate dispute resolution. Communicate AMVIC s message to the public. Continue to review the Consumer Compensation Fund. 5
7 Business plan activities: Contract a governance coach to guide the AMVIC board to: o Develop a contemporary governance charter outlining a new model of governance. o Engage stakeholders in the reform process. o Assist the board to conduct annual performance self-evaluations. o Coach the board on governance best practices. o Assist the board to set governance related learning goals. o Assist the board in designing a strategic monitoring system. Enhance communications and information with all AMVIC stakeholders including society member organizations, licensees, registrants, consumers and Service Alberta by: o Communicating the scope of AMVIC s jurisdictional authority. o Promoting AMVIC s consumer protection mandate. o Assisting the automotive industry to understand the legislative environment they operate in. o Making consumers aware of their rights and protections under the Fair Trading Act. o Conducting a benchmark survey to determine consumer awareness and satisfaction of AMVIC. o Build relationships with consumer organizations, industry organizations and media in Alberta. Strengthen AMVIC s human resource assets by hiring new employees in areas that are understaffed and strengthening internal educational programs for employees. o Hire a registrar and human resource manager. o Continue formal training of consumer services employees in alternate dispute resolution. o Engage frontline employees to evaluate IT requirements. Support a comprehensive review of Alberta s automotive sector legislation through a legislative review panel to be established as per the Cuff Report recommendations. Work with stakeholders to continue the review of the Consumer Compensation Fund as per the Cuff Report recommendations. 4. BUSINESS PLAN GOALS Goal One: Enhance Governance and Stakeholder Alignment Key activities: Contract a governance coach to guide the board to: o Develop a contemporary governance charter outlining a new model of governance. o Engage stakeholders in the reform process. o Assist the board to conduct annual performance self-evaluations. o Coach the board on governance best practices. o Assist the board to set governance related learning goals. o Assist the board in designing a strategic monitoring system. Outcome measures: All the key activities are to be completed during Progress will be reported by the board chair at each regularly scheduled board meeting. 6
8 Goal Two: Enhance Stakeholder Relationships Key activities: Enhance communications and information with all AMVIC stakeholders including society member organizations, licensees, registrants, consumers and Service Alberta by: o Communicating the scope of AMVIC s jurisdictional authority. o Promoting AMVIC s consumer protection mandate. o Assisting the automotive industry to understand the legislative environment they operate in. o Making consumers aware of their rights and protections under the Fair Trading Act. o Conducting a benchmark survey to determine consumer awareness and satisfaction of AMVIC. o Building relationships with consumer organizations, industry organizations and media. Outcome measures: All of the key activities will be continually conducted in the three year duration of the business plan. Quarterly progress will be reported in the communications operations report at board meetings. Goal Three: Strengthen the Organization Key activities: Strengthen AMVIC s human resource assets by hiring new employees in areas that are understaffed and strengthening internal educational programs for employees. o Strengthen resources by hiring the following employees: Registrar Human resource manager Administrative assistant for registrar Three investigators Licensing officer Fill the vacant in-house counsel and legal assistant positions Investigator Investigations coordinator (Calgary) Industry standards officer (field inspector) Consumer services officer Licensing advisor Compensation fund claims adjuster/records management/foip Investigator Industry standards officer (field inspector) Consumer services officer o Continue formal training of consumer services employees in alternate dispute resolution (all three years). Engage frontline employees to evaluate IT requirements (all three years). o Refine the AMVIC Online portal user interface ( ). o Continue development of AMVIC s CRM system (all three years). 7
9 o Evaluate a unified communications strategy. Work collaboratively with stakeholders to develop a permanent and sustainable funding model ( ). This funding model will enable AMVIC to do the following: o Strengthen its organization as proposed in the Cuff Report recommendations. o Eliminate the projected deficits during the term of this business plan s three year financial plan. Outcome measures: Quarterly progress will be reported in the HR operations and finance report at board meetings. Goal Four: Improve Legislation Key activities: Support a comprehensive review of Alberta s automotive sector legislation through a legislative review panel to be established as per the Cuff Report recommendations ( ; ). Facilitate a better understanding of legislation for all stakeholders ( ). Outcome measures: Progress will be reported by the legislation review panel chair at each regularly scheduled board meeting. Goal Five: Review the Consumer Compensation Fund Key activities: Work with stakeholders to continue the review of the Consumer Compensation Fund as per the Cuff Report recommendations. The goal of the review is to make the fund more accessible to consumers while mitigating risks to the fund ( ). Outcome measures: Progress will be reported by the compensation fund committee chair at each regularly scheduled board meeting. 8
10 5. DELEGATED ACTVITIES PERFORMANCE MEASURES Licensing & Registration Licensing (businesses) and registration (salespeople) administration under the Fair Trading Act and the Automotive Business Regulation. Performance Measure Percentage of licence applications processed within ten days (after business package is received) Percentage of registration applications processed within ten days Percentage of renewals and applications processed online Last Actual % 85% 85% 85% 74% 80% 85% 85% 99% 99% 99% 99% Percentage of licensees that renew on time 63% 65% 67% 70% Percentage of registrants who renew on time 54% 60% 65% 70% All new licensing files stored digitally 100% 100% 100% 100% Compliance & Enforcement Investigations, claims and enforcement arising from complaints under the Fair Trading Act, the Automotive Business Regulation, the Cost of Credit Disclosure Regulation and the Internet Sales Contract Regulation. Performance Measure Matter resolved by consumers services (includes complaints abandoned by consumers) Last Actual ,100 1,300 Licensee inspections Curber files investigated (completed) Consumer complaints investigated (completed) 1,041 1,170 1,345 1,425 9
11 Consumer Compensation Fund Administration Establishment and administration of the Consumer Compensation Fund. Performance Measure Last Actual Grow fund to a sustainable level $4 million $4 million $4 million $4 million Reimburse consumers in accordance with approved policies 100% 100% 100% 100% Stakeholder Education Establishment of educational programs for consumers and industry members in relation to automotive businesses. Performance Measure Last Actual Annual number of website page requests 279, , , ,000 Proactive consumer and industry awareness activities by AMVIC (interviews, newsletters, industry/consumer bulletins, news releases)
12 6. THREE YEAR FINANCIAL PLAN 2015/ / / / /2020 Actual Forecast Budget REVENUE Licensing 2,976,095 3,086,555 3,086,555 3,179,152 3,338,109 Levy 2,836,952 2,642,425 2,642,425 2,774,546 2,913,274 Educations Course 546, , , , ,127 Other 62,719 97,828 90,000 92,700 97,335 TOTAL REVENUES 6,422,566 6,361,368 6,353,540 6,596,995 6,926,845 EXPENSES Licensing 536, , , , ,937 Consumer Services 253, , , , ,767 Investigations 1,882,006 1,856,996 2,256,065 2,658,289 2,886,413 Industry Standards 418, , , , ,319 Registrar , , ,564 Communications/Education 433, , , , ,895 Compensation Fund 56,834 17,747 16,000 77,288 81,152 Board 118, , , , ,973 Administrative/Executive/ Legal/Finance/HR/IT 1,981,664 2,190,607 2,268,680 2,392,880 2,485,435 TOTAL EXPENSES 5,680,829 5,839,336 6,770,030 7,732,940 8,340,455 TOTAL NET SURPLUS (DEFICIT) 741, ,032 (416,490) (1,135,945) (1,413,610) CAPITAL INVESTMENTS Vehicles 56,128 88, , , ,750 Technology 57,962 35, , , ,000 Furniture, Fixtures & Leasehold Improvements 59,291 8,478 25, ,000 30,000 TOTAL CAPITAL INVESTMENTS 173, , , , ,750 11
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