Annual Report 30 June 2012

Delivering increased organisational health and capability

Change

Successful implementation of key change programmes.

Following a comprehensive and complex planning, consultation and decision-making process, work is now underway to implement a new business model for the Ministry.
The model introduces new organisational structures and modernises the Ministry’s staffing models and processes that will lead to efficiency gains.
The Ministry is also implementing updated systems for management of resources, including increased devolution of financial and management authority to line managers in Wellington and at overseas posts.

Modernisation of our offshore delivery platform

The Ministry is continuing to invest in modernisation to achieve efficiency gains and improved operational outcomes over the longer term. Key initiatives are:

Review of the number and function of offshore posts has resulted in the closure of one post and significant changes being implemented to how we manage posts
Significant investment in developing a more flexible and modern global network along with enhanced mobile computing
Simplification and streamlining of corporate processes and systems
Modernisation and simplification of financial processes and systems.

NZ Inc coordination

The Ministry continued to lead cross-agency work to develop and implement the NZ Inc country and regional strategies. These strategies strengthen strategic planning and operational coordination among agencies. In 2011/12:

Strategies have been launched and are being implemented for China and India.
NZ Inc agencies worked on country strategies for the US and Australia, as well as regional strategies covering ASEAN and the Gulf Cooperation Council regions.
There has been extensive engagement with business in developing, testing and implementing the strategies. Information seminars on the China strategy took place in nine centres around New Zealand, with more than 650 people participating.

Knowledge management tools and their infrastructure

The Ministry has invested around $5.5 million in developing a more flexible and modern global network environment along with adopting enhanced mobile computing solutions. This comprises:

Implementing a new Global Restricted network across Wellington and all posts (enabling all staff direct access to the internet and intranet)
An upgrade to the Windows 7 and Office 2010 platforms
Implementing a Sharepoint-based interim document management system in preparation for a global document management system
Developing an e-Records capability, and expanding mobile device capability (laptops, iPads, PDAs).

Flexibility: continue to increase the number of mobile tools deployed to users

2010/2011	2011/2012
1,197 at 28 February 2011	864 mobile tools at 30 June 2012, comprising: 560 laptops, 285 mobile phones (including Blackberries and iPhones), 19 iPads.

Reliability of systems:

What we said we would achieve	2010/2011	2011/2012
Maintain a high level of systems availability (>98%) of core systems.	Exceeded	99.51%

Capability and people

We said we would implement a new toolkit for developing capability in the organisation, including a redesigned performance management system, more targeted learning and development opportunities, and a new leadership development framework.

The performance management framework was redesigned and implemented over 2011/12. This framework focuses on recognising and rewarding staff performance based on the achievement of results and through the demonstration of the Ministry’s values. The system is simplified and provides for the delegation of decision making to line managers.

A leadership and management development program has been developed and is being progressively rolled out to support the new leadership development framework. An increased focus on talent management is ensuring that learning and development opportunities are becoming more targeted with higher performers and those with high potential being more actively identified and supported in their development.

The remuneration system, including allowances and benefits, was reviewed and redesigned. The new system enables staff performance recognition based on updated remuneration ranges. A more rationalised approach has been adopted for offshore allowances.

A review of language training has been undertaken to increase the efficiency and effectiveness of the investment. Consultation and decisions on review proposals will occur in the 2012/13 financial year.

	What we achieved
What we said we would achieve	This year 2011/12	Last year 2010/2011
Improvement in the Ministry’s staff engagement score	Engaged 14.4% Ambivalent 57.2% Disengaged 28.4%	Engagement Survey not undertaken
Maintaining the Ministry’s low sick leave rates. (days per person)	5.2 days	4.8 days
Maintaining the Ministry’s low turnover rates. (Core Unplanned)	12.5%	9.2%
Proportion of Employees with annual leave balances >5 weeks	45.0%	39.3%

Note: Measures in this table have been brought into line with the State Services Commission Departmental Comparator Report. Values and the measure related to annual leave have had a calculation methods update to be consistent with those used by the Human Resource Capability Survey.
This methodology will be adhered to in future.

Implementation of changes to the Ministry’s business model for the delivery of official development assistance (ODA)

Over 2011/12 the International Development Group of the Ministry (which manages the delivery of ODA) has undergone profound change. A new business model with streamlined operating and procurement processes has been implemented. Building on the major re-organisation and re-integration within the Ministry in 2010-11, the new structure and roles have been bedded in. Procurement and scholarships functions were reviewed, refocused and restructured. The focus is on the effective and efficient delivery of development assistance. The new business model supports a move towards fewer, larger, more impactful development activities; improved value for money; working more in partnerships with other donors, the private sector and civil society; and increasing the overall results focus and effectiveness of the aid programme.

Equal Employment Opportunities

We place strong emphasis on fostering a diverse workplace and inclusive culture. In representing New Zealand, it is important for us to have an internal culture that respects and reflects the diversity of New Zealand and its society. We are continuously working towards promoting and fostering equality and diversity in our workplace. To this end we continue to negotiate with other governments on reciprocal arrangements for partners of diplomatic officers.

Capital asset management

Over the past 12 months our major capital projects have included:

Technology

Orange Phase 2 - development of Global Restricted network across Head Office and posts
Interim document management system (precursor to global document management to be implemented later in 2012)
Upgrade of all Ministry desktops and laptops to Microsoft Windows 7, Office 2010 & Exchange 2010
Global document management system design
Implementation of e-records technology commenced.