Managing in a changing environment

We must keep developing our programmes to respond to the changing needs of our clients, while getting value from every dollar spent.

Managing costs

The Ministry has been committed to managing cost pressures through a Value for Money approach since 2007. We have produced consistent efficiencies to manage within our departmental budget since then. However, the task of identifying efficiencies is getting tougher.

We face on-going and additional pressures on a decreasing baseline. The Four Year Plan requires the Ministry to absorb a government efficiency dividend and salary increments through to 2016/2017 while at the same time delivering on a large and complex reform agenda.

Supporting Better Public Services

Wherever possible we will reduce costs and free up resources for specialist staff working intensively with high needs clients.

Straight Through Processing is a key component and will enable the Ministry to deliver common services more efficiently and effectively (with shared accountabilities and resources across service lines). It is intended to provide a central delivery channel supporting client self-service with minimal staff intervention.

Efficiencies through innovation

We need to be able to innovate while at the same time manage risks. We are committed to a far reaching programme of business transformation which relies heavily on information services developments. Making smarter enterprise investments will help us to deliver better services and a more efficient operation.

Procurement opportunities

We will continue to review our procurement of goods and services using a Ministry-wide approach to maximise our purchasing power. These opportunities include property, fleet, travel, telecommunications, information systems, utilities, post services and other administration costs.

In addition, we are also reviewing the procurement of goods and services for welfare recipients. We will continue to help clients get better deals by investigating opportunities for preferred suppliers that may lead to improved access to services, discounts or rebates.

Working across agencies

We will continue to work with other agencies to share resources, expertise and infrastructure to be more effective and efficient. These initiatives include:

• being the functional leader for property and the home to the Property Management Centre of Expertise
• whole-of-government contracts for air travel and legal services
• forming a media monitoring cluster with 18 different agencies
• whole-of-government infrastructure as a service model to save costs on networks and data storage
• providing better, lower-cost core IT services to a number of Crown entities.

For example, the functional leadership role of the Property Management Centre of Expertise has been strengthened to ensure we maximise the opportunities and leverage government’s use of accommodation to support the rebuild of the Christchurch CBD.

The enduring office accommodation programme for Government in Christchurch presents a unique opportunity to co-ordinate office and service delivery networks for those 18 agencies represented in Christchurch. It also represents an opportunity to innovate and demonstrate emerging workplace practices for other Public Sector environments across
New Zealand.

The Property Management Centre of Expertise has engaged with agencies and the local property market to develop an RfP process that will enable an enduring central city office accommodation solution that supports the rebuild and provides:

• an emphasis on collaborative shared space and minimising dedicated spaces
• agile shared infrastructure (hard and soft fit-out, and ICT ) with minimal use of fixed partitions
• innovative workplace practices (such as shared workspaces, remote working and activity based design)
• leading edge occupancy density (13 square metre per FTE)
• consideration of the environment.

Providing assurance

The Ministry’s Risk and Assurance Group provides independent assurance and advice to the Audit Committee, Chief Executive and the Leadership Team. It advises on the systems, processes and controls that the Ministry relies on to deliver effective and efficient services to all New Zealanders.

The Group undertakes a programme of audit, assurance and advisory activity to evaluate and improve risk management, controls and governance processes in the Ministry. The Group also facilitates and supports the implementation of the Ministry’s risk management approach and promotes good risk management practices.

The Ministry’s Audit Committee, operating independently of the Leadership Team, provides expert advice directly to the Chief Executive. The Audit Committee’s independent Chair has extensive private sector business experience.

Governance

The Chief Executive is supported by nine Deputy Chief Executives to form the Leadership Team. The Leadership Team meets weekly to provide Ministry-wide direction and leadership through:

• Leadership Team Forum, which focuses on strategy and topical discussions to ensure appropriate sequencing of activity through sharing operational and sectoral intelligence, and is held twice a month
• Leadership Team Governance meetings, which focus on Ministry-wide strategic decision-making to ensure sufficiency, momentum and balance across the Ministry’s portfolios, and are held twice a month.
  The Leadership Team Governance meeting has a regular standing agenda item giving increased visibility of IT and Information Security matters. This is supported by a Security and Integrity Steering Group.

Risk management

The Risk and Assurance Group completed a comprehensive refresh of the Ministry’s risk management approach in 2012/2013. The aim is to better support quality decision-making and promote good judgment about the risks and opportunities for the Ministry.

Complementing this work is the development of the Ministry’s risk appetite by the Leadership Team. Our risk appetite gives the rationale and guidance for the Ministry’s approach to different types of risk.

There is also renewed emphasis on, and a clearly defined process for, quality information provision to senior management in a comprehensive and consistent format so as to inform decisions on enterprise-wide risk.

That information will inform the regular discussions of the Chief Executive and Leadership Team on strategic objectives, opportunities and risks, and the appropriate strategies to manage them.

Information security

Our success is reliant on public trust and confidence in our ability to manage information responsibly. Better use of information is critical to our ability to progress each of the Government’s reform priorities.

During 2012 the Ministry suffered a security breach. Two independent reviews by Deloitte found that it was not a systemic problem and we now operate in an environment with a much greater awareness of the need for responsible and professional management of privacy and information security. We have committed to a broad programme of work to embed best practice and integrate information security into strategic planning.

One of our Deputy Chief Executives has been tasked with specific leadership responsibilities across the Ministry and we have also appointed a Chief Information Security Officer. The Leadership Team has further and more direct oversight of information security issues through our governance processes and we have set up an independent Expert Advisory Group on Information Security to oversee best practice in the implementation of the Vulnerable Children’s Information System.