8.3 Matrix Organisations Matrix organisation structures have been embraced by organisations since the late twentieth century to leverage and recognise the professional credentials and expertise of an increasingly specialised workforce. This ensures that elite subject matter experts have the authority and responsibility commensurate with their professional credentials and are not politically buried deep within archaic ‘command and control’ structures. In addition, professional experts are held to account to the standards and ethics of their own profession that can NOT be eroded or ignored by the commercial or other organisational hierarchy. Doctors, lawyers, accountants and human resource specialists etcetera are all sworn to codes of conduct that is core and conditional to their accreditation. Thus, no one could legally override Dr Reid on medical matters at Essendon, and no one could override Andrew Dillon on legal matters at the AFL. The Essendon board and executive were at least implicitly aware of this when they created an organisation that accorded solid line reporting by specialists to their accountable manager whilst with persons and departments which they ‘served and advised’ having dotted line reporting relationships. Solid line accountability and reporting represents authority and responsibility with rights to: · Set policies and procedures to ensure proper compliance with standards their professions demand · Provide the formal Quality Assurance for the provision of their professional expertise · Hire and fire, performance manage and therefore promote and remunerate staff within their department This meant that Hird only had authority over, and responsibility for, Mark Thompson, Brendan McCartney, Simon Goodwin and Sean Wellman. Dotted line accountability denotes consultation, advice and provision of expert services. This meant that Hird could consult with, and seek advice from Dean Robinson and Danny Corcoran. He had no power to admonish, let alone discipline Robinson or Corcoran or anyone in any department other than his own coaching department. Every organisation is subject to legal and regulatory framework that is general to all organisations. In addition, there are legal and regulatory requirements and enforcement agencies particular to specific industries such as professional sport. The board is obliged to ensure the chief executive establishes an organisation, policies and procedures that comply with all legal and regulatory requirements. The appropriate professional is delegated responsibility and authority for designing and enforcing rules and processes to ensure compliance. At Essendon, the line of authority for the supplementation program was Robson, Hamilton and Robinson, with the proviso that Dr Reid could not be overruled. No executive in a line role, as is the football and coaching departments, is expected, or indeed allowed, to establish policies, introduce procedures or intervene or ignore the application of any such rules and regulations. In large corporations there are Board Risk Sub-Committees that are established to ensure a direct line to the board if any staff considers there are breaches of proper practices. For example, this occurred in the David Jones-Mark McInnes matter. In any public company, the chief executive himself could not act in direct contradiction to a formal opinion by a lawyer or accountant that spoke of non-compliance. To illustrate the increasing obligations of major organisations, in the last few years, significantly upgraded OH&S compliance obligations have been imposed on company directors which include criminal and civil penalties for offences. The board and chief executive are obliged to ensure all laws and regulations are enforced and the onus is on them to prove that they were in place and that ALL relevant and affected staff, those impacted as well as those with authority and responsibility is apprised of their respective rights, duties and obligations. 8.4 Hird Background James Hird was appointed senior coach of Essendon Football Club in September 2010. Hird was on his own branch of the Essendon organisation structure and reported directly to Chief Executive Officer, Ian Robson. (see Essendon organisation structure chart on page xxx). Hird had four assistant coaches reporting to him - Mark Thompson, Brendan McCartney, Simon Goodwin and Sean Wellman. The Football Department was on a different branch of the organisation structure from Hird’s coaching branch, and the football department was run by Paul Hamilton, whose title was General Manager – Football Operations. Hird’s Coaching Department, and Hamilton’s Football Department, only had a broken line link. Hird had no link to Hamilton. Hamilton, like Hird, reported directly to CEO, Ian Robson. The Executive Team at Essendon (see attached chart page xxxx) comprised; · EFC Board; (Level1); · Managing Director & CEO, Ian Robson; (Level 2) · Chief Financial Officer; Chief Commercial Officer; General Manager - Football Operations, Paul Hamilton; Chief Operating Officer; and Communications Manager. (Level 3). Although Hird reported directly to the chief executive, Ian Robson, he, unlike those named above, was not a member of the executive. Note the absence of the * alongside Hird’s name on the executive organisation chart. The High Performance Unit was run by Stuart Cormack until June 2011, and then by his replacement, Dean Robinson, from August 2011 until February 2013. The High Performance Unit formed part of the football department and Cormack, and then Robinson, reportedly directly to Hamilton. Essendon lost five matches in a row between 21 May 2011 and 24 June 2011. During a number of casual discussions, President, David Evans; CEO, Ian Robson; General Manager – Football Operations, Paul Hamilton; Football Manager, Danny Corcoran; Senior Coach, James Hird; and Assistant Coach, Mark Thompson, agreed with the media assessment that Essendon players were not big enough, strong enough or fast enough to make the top four, let alone win the flag. There was also a strong belief because of the unusual number of soft tissue injuries that Essendon had to make changes to way it was doing things. Consensus was reached in pre-season 2012, that the football department had to focus more on addressing the lack of strength, size and speed concerns than it had previously. To that end, it was agreed that Essendon would embark on a more scientific approach to its training and preparation - a strategy, no doubt, embraced by every club in the league. Unsurprisingly, the AFL also shared the view that there were some positives to be derived from sports science and the search for the extra edge. On 24 April 2012, the AFL’s General Manager – Football Operations, Adrian Anderson, sent an email to the clubs titled ‘Leading Approach to Sports Medicine and Sports Science in AFL’. The discussion paper that was attached to the email, identified a range of ‘issues’ and possible consequences that had arisen under the existing medical arrangements within AFL clubs. Inter alia, Anderson said: ‘The influence of sport science and search for the extra “edge” has grown in recent years which has some positive and potential negative implications.’ Ian Robson (page 59 of the Interim Report): “It was clear we all felt – all of us felt, coming out of 2011, that the – the players were undersized in terms of their strength.” Paul Hamilton (page 59): “The coaches had identified – I don’t think they were happy with the weights program that had been previously done by the previous regime. Certainly – and Mark Thompson was a big one on this – he wanted – he wanted the players to lift heavier weights… In combination with this focus, Essendon, decided to invest more in the high performance sports science team’.” The bottom line was the coaches and senior executives, including the president and chief executive, had identified a problem. It was the football department’s, led by Paul Hamilton, responsibility, to fix the problem. Identifying the problem was the beginning and end of Hird and Thompson’s official input – although Hamilton invited Hird and Thompson to Robinson’s and Dank’s interview meetings. Hird and Thompson had no responsibilities whatsoever for the high performance unit or the supplementation program, and had no authority to intervene. The Victorian Occupational, Health & Safety Act, the Commonwealth Corporations Act, various agreements signed by the AFL and Essendon, the Essendon matrix organisation structure, and job responsibilities, determined responsibility for providing a safe workplace. ASADA, and the media had no say, although the media’s vicious, unrelenting attacks claiming Hird was responsible, created an opportunity for AFL general counsel, Andrew Dillon, to lodge a series of vexatious allegations against Hird and Thompson. In early June 2011, a member of Hird’s cycling ‘group’ asked Hird whether AFL clubs used peptypes [sic] [peptides] as part of their conditioning program. Hird had never heard the word before and approached the club’s performance dietician and recovery co-ordinator, Benita Lalor, and asked her what she thought of ‘peptypes’. Lalor immediately advised Essendon’s High Performance Manager, Stuart Cormack that she had been approached by Hird and asked about peptides. On 11 June 2011, Stuart Cormack resigned as Essendon’s High Performance Coach, which created an opportunity for Essendon to change focus within the high performance unit by employing someone with better sports scientist credentials to run the high performance unit under Hamilton’s control. On 26 July 2011, Hird approached an ASADA Doping Control Officer (DCO) during a routine drug testing session at Essendon and asked whether any AFL clubs were using ‘peptites’[sic] as he had received information that they were. Hird’s approach was reported by the DCO to his superiors at ASADA. Within a couple of days of Hird’s conversation with the ASADA doping control officer, AFL integrity manager, Brett Clothier, phoned Essendon’s General Manager – Football Operations, Paul Hamilton and requested that he bring Hird to a meeting at the AFL. The phone call was significant in that it clearly demonstrated that the AFL knew Hamilton was more senior to Hird. On 5 August 2011 (page 56), Hird was interviewed by ASADA and AFL Integrity Officers in relation to his enquiry with the DCO. Essendon’s two most senior football department members, Hamilton and Danny Corcoran, also attended the meeting. Hird explained that he had been approached by some colleagues from his cycling group who had asked him about ‘peptites’ [sic] and whether they were permitted to be used. ASADA’s Interim Report inexcusably stated that “At the conclusion of the ASADA interview, The AFL’s Manager Integrity Services ‘re-iterated’ to Hird that peptides were a serious risk to the integrity of the AFL, in the same category as steroids and HGH.’ Mr Clothier told Mr Hird that ‘peptides already appeared to be infiltrating other elite sports in Australia and that [the AFL] we could be next.’ Mr Clothier also ‘implored [Mr] Hird to report to [the AFL] if he came across any information relating to peptides.” This account is substantially different from the accounts of Hird and the ASADA official who attended the meeting. ASADA’s inexplicable decision to accept them as fact, not only proved ASADA’s bias, but corrupted the entire investigation to the point that the investigation should have been aborted. Throughout the interim report, testimony by witnesses is preceded by terms such as “says” or “claims”. This was the only time a witnesses’ comment was accepted as fact. The above Clothier comments were used against Hird by AFL general counsel, Andrew Dillon, and given Hird had no responsibilities within the football department, undoubtedly contributed more to the AFL demanding he be suspended for twelve months than any other factor. This issue is so important, the Minister for Sport, Peter Dutton, should immediately order an investigation to ascertain why ASADA accepted Clothier’s comments as fact when Hird, Hamilton and Corcoran believed the comments were pure fabrication: · The AFL’s Manager Integrity Services ‘re-iterated’ to Hird, implies Hird was told before. That is a lie; · Clothier was an investigator. He had access to all witnesses’ testimonies. As such, ASADA corrupted the investigation by allowing him to testify; · Hird testified on 16 April 2013, and inter alia, discussed what was said at the 5 August 2011 meeting. Hird’s version of the what was said is totally different from what ASADA investigators negligently accepted as fact in their interim report; · Clothier, ‘coincidentally’, testified the very next day, 17 April 2013. As nothing was included in the Interim Report about Clothier’s comments on 17 April 2013, about the meeting on 5 August 2011, it is reasonable to assume he wasn’t asked about it by ASADA or that he couldn’t recall what was said at the 5 August 2011 meeting; · At 12:33pm on 17 July 2013, Clothier sent an email to ASADA investigators. Although, ASADA has not published the full contents of the email and file notes, it claims the above comments by Clothier were part of it. Given the damage the email caused Hird, and given the flood of irrelevant SMSs and email’s between Dank and non-Essendon people included in the report, it is inexplicable that this email was not included in full, in the report; · It is impossible to comprehend how ASADA accepted the email as evidence; · Although a number of lawyers believe Clothier the investigator should not have been allowed to act as a witness, once he was, it is impossible to comprehend that ASADA did not re-interview him (Clothier) about the email – particular as his version was different from the ASADA staff member, who attended the 5 August 2011 meeting. · Given, many witnesses were recalled to qualify things, or refute things, it is mind-blowing that Hird wasn’t recalled to be re-questioned about the issue. Given Hird believes Clothier fabricated his evidence, Hird should have been given an opportunity to refute Clothier’s claim. · Danny Corcoran and Paul Hamilton, whose contemporaneous notes taken at the meeting disagreed with Clothier’s claim, should have been recalled by ASADA to be questioned about the matter. · An ASADA employee attended the meeting with Clothier, Hamilton, Hird and Corcoran and his recollection is totally different from Clothier’s, which ASADA accepted as fact. On page 56 of the Interim Report it states: “According to the ASADA file note ‘Mr Hird stated that he had never heard of the substance before and the opportunity arose to ask ASADA testing staff on the day of the mission on his club on 26.7.11. Mr Hird reiterated that he had no knowledge of the substance whatsoever and was simply making inquiries to satisfy the original question put to him. A general discussion then followed covering off on ASADA’s belief that various forms of peptides were increasingly being detected by Customs and other agencies and that the products were banned in sport.’ (ASADA file note – xxxxxxxxxxxx). · Clothier did not record the above comments in his diary. Those comments were never mentioned to anybody until he trotted them out 711 days later. The comments were deemed to be so damaging to Hird that one of the investigators kindly shared them with Caroline Wilson from the Age which enabled her to include them in her on-line column six hours after ASADA received the email. The leak was obviously in breach of the ASADA Act and was done to damage Hird. · If ASADA had genuinely been interested in the truth instead of focussing on compiling a case against Hird, it would have asked Clothier a series of questions: Ø Why did Clothier falsely claim ‘peptides were in the same category as steroids and HGH.’ All steroids and HGH are banned. Many peptides are not banned. Clothier’s alleged comment for Essendon not to use peptides put Essendon at a severe disadvantage because other clubs were using permitted peptides. Ø As Hamilton was General Manager – Football Operations, and as he was a member of the Essendon executive, and as he was responsible for the high performance unit, why did Clothier warn Hird instead of Hamilton? Ø If you really gave Hird the above warning, why didn’t you inform AFL’s General Manager - Football Operations, Adrian Anderson, in writing about the warning, as you were required to do? Ø If you really gave Hird the above warning, why didn’t you inform Essendon chief executive, Ian Robson, in writing about the warning as you were required to do? Ø As you were responsible for the integrity of the competition, and as the warning contains serious concerns by you, why didn’t you conduct a series of audits at Essendon to ensure it was complying with your demands? Ø If you gave the above warning to Hird, is there any difference between you trusting him to comply, and Hamilton / Hird warning Robinson and Dank not to breach the WADA code, and then trusting them to comply? Ø If Hird is penalised for trusting Hamilton’s Essendon staff, should you receive the same penalty as Hird, for trusting Hird to comply with your request? Bruce Francis