Statement of Intent 2005 - Strengthening Our Capabilities
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Context
The Ministry is achieving excellent results in placing clients into employment, paying student loans and student allowances, and providing income support, pensions, and the Community Services Card and providing co-ordinated services to families.
We play a significant role in developing and monitoring cross-sectoral social policy, and lead major pieces of work such as the Working for Families package, Opportunity for All New Zealanders, the Single Core Benefit, and Early Intervention for vulnerable children and families.
These achievements reflect our progress towards the two overarching goals we set ourselves when the Ministry was established in 2001:
- in the short term, to consolidate effective delivery of our core business
- in the long term, to establish the structure and systems that will enable us to lead social development and contribute to better outcomes for all New Zealanders.
We have now consolidated our core business, and we have made substantial progress towards achieving our second goal, by:
- aligning policy and service delivery
- moving towards an outcomes-based, rather than a transactions-based, approach
- expanding our structure to take a broader social development focus, with the Ministry of Youth Development, Older People’s Policy Group and Family and Community Services being the most recent additions
- taking on new functions such as the community labour market development function transferred from the Department of Labour.
Over the past year, the focus has been on making the changes that will support our strategic outcomes approach at the policy, service delivery, and corporate levels. Over the next three years, our work to build our capability will focus on:
- taking a strategic approach to recruitment to ensure we can address skill shortages and attract the people we need for the future
- further strengthening our strategic leadership capability by identifying and developing our future leaders
- building structures, frameworks and programmes to further develop staff capability and organisational performance
- maintaining, enhancing and transforming our critical business systems to ensure that they support the Ministry’s current and future needs
- further development of the Ministry’s multi-year funding strategy and associated tools to ensure that we make the best use of our resources.
Strategically focused leadership structure
We have moved away from a leadership structure that drives performance in individual areas, establishing a smaller, more strategic senior leadership team. This structure enables an organisation-wide focus on strategic issues, and a better alignment with our outcomes.
Enhanced policy structure
Our new ‘policy cluster’ brings our social development leadership functions into one group. Each of our other policy groupings has responsibility for one of the outcome groups: children and young people, working age people, older people, families and whanau, and communities, hapu and iwi.
Client-centred approach
We are transforming our service delivery to a model that puts the client at the centre, takes a whole-person, whole-of-life approach, and focuses on outcomes rather than transactions. The client-centred model involves:
- focusing on helping clients achieve economic independence through sustainable employment
- providing specialised services to distinct client groups, such as sole parents, so they can plan for employment as their circumstances allow
- helping clients gain the skills that match labour market demands
- providing support services to clients with, for example, ill health or disability
- moving towards a more integrated service for particular client groups (eg senior citizens).
Strengthened support and governance services
The corporate support and services functions have been brought together to ensure they support the Ministry in focusing on the needs of clients and improving social outcomes for all New Zealanders. Our new governance structure supports our focus on our strategic direction.
Aligning outputs with outcomes
When the Ministry of Social Development was established in 2001, the outputs and performance measures of the former Ministry of Social Policy and the Department of Work and Income were left more or less intact. These separate outputs and performance measures do not reflect our move towards a social development approach or managing for outcomes. The diagram below shows the current relationship between our outcomes and output expenses.
A project is underway to align our outputs and performance measures to our high-level outcomes over the next three years, and we have started to implement some changes that will assist us to make this transition. The recent reorganisation of our structure better reflects our outcomes framework and ensures that each area of our work has a policy and delivery partner. Some of our policy or delivery partners are located in other departments, reflecting the integrated nature of the social sector.
The relationship between MSD’s outcomes and output expenses
Click on the image to enlarge
Realigning the structure of Specialist Services
Specialist Services has responsibility for six service delivery businesses in the Ministry. A review in 2004 identified that the Specialist Services’ structure was aligned with its business outputs and services, rather than with outcomes. Specialist Services has changed its management structure to better align with the Ministry’s outcomes-focused approach, to build its capability, and to better respond to future requirements.
Client Management System
Effective client management requires a client-focused approach that enables collaboration between agencies. However, the Ministry’s current systems and processes do not facilitate an integrated approach to the support and management of individuals, families and communities. Over the next three years we intend to develop and implement a Client Management System that will result in:
- clients receiving more effective management, appropriate to their particular circumstances
- our staff having a model and systems that better support their management of clients.
Government pay and employment equity
The Ministry is committed to the outcomes of the Government Pay and Employment Equity plan of action. We will:
- evaluate pay and employment equity for the Ministry and develop an action plan if required
- work in collaboration with the State Services Commission and the Pay and Employment Equity Unit in the development of pay and employment equity processes in the public service.
Crown Entity Responsibilities
The Ministry provides a range of services to the Minister for Social Development and Employment1 which are designed to assist him to carry out his Crown entity responsibilities.2
In practice this involves:
- participating in the process of setting the strategic direction of each entity they are responsible for, usually by providing advice on the form and content of statements of intent and other accountability documents
- providing purchase advice on the outputs to be purchased from each entity
- monitoring the operation and performance of each entity, and ensuring that risks are identified and effectively managed
- assisting in Crown entity related appointments.
During 2005/06 particular attention will be given to ensuring that entities are aware of and comply with requirements arising out the new Crown entity legislation. We will also be looking at improving the strategic alignment of each entity (e.g through development of a more consistent and complementary outcome framework, and a better understanding of sector wide strategies such as Opportunity for All New Zealanders), and through the development of more integrated sector wide planning processes.
State Services Development Goals
In March 2005 the State Services Commissioner released the development goals for the State Services. The goals have been agreed to by the Government and are designed to encourage co-ordination amongst government agencies. The goals also outline the future direction for state services and focus on improving the overall performance of the public service to ensure the system can meet the needs of New Zealanders, whilst serving the government of the day.
The Ministry actively promotes and supports the achievement of these goals. Our support is visible through the connected and co-ordinated approach we take in all facets of our work.
We have recently expanded the role and scope of Work and Income Regional Commissioners to have a ministry-wide leadership focus within their region and are working on developing integrated regional plans that take a whole-of-ministry view for each region and focus on social development outcomes.
We also have initiatives in place to ensure our services are co-ordinated and are doing more work to encourage and support a ‘no wrong door’ approach to accessing government services.
At a Ministry level we are embedding a ‘whole-of-Ministry’ approach and have implemented monthly forums for regional staff to come together, network and identify opportunities to collaborate. We also hold national fora for our leaders and managers, periodically through the year. These fora focus on both strategic and delivery priorities for the Ministry.
At an inter-agency level we are taking advantage of our large regional presence and are looking at how we can better connect New Zealander’s to the Ministry’s services and social services provided by other government and non-government organisations. Expanding the role of Work and Income Regional Commissioners and establishing Family and Community Services has been a first step towards achieving this goal.
Over the next year we will work on networking the delivery of our services with other agencies. This will mean that clients won’t need to figure out which organisation to contact. Instead they will be guided through to where they need to be regardless of the organisation they approach.
We will also continue to support the collaborative initiatives we already have in place with other government departments and organisations such as the Social Services Cluster, the Health, Education, Social Development and Justice (HESDJ) Chief Executives forum, Heartlands Services, Strengthening Families and Family Funding Violence Circuit Breaker.
The overall goal for the State Service is:
A system of world class professional State Services serving the government of the day and meeting the needs of New Zealanders.
The development goals are:
Employer of choice
- Ensure the State Services is an employer of choice attractive to high achievers with a commitment to service.
Excellent State servants
- Develop a strong culture of constant learning in the pursuit of excellence.
Networked State Services
- Use technology to transform the provision of services for New Zealanders.
Co-ordinated State agencies
- Ensure the total contribution of government agencies is greater than the sum of its parts.
Accessible State Services
- Enhance access, responsiveness and effectiveness, and improve New Zealanders’ experience of State Services.
Trusted State Services
- Strengthen trust in the State Services, and reinforce the spirit of service.
What these changes mean for the Ministry
Our policy functions are better organised to achieve our outcomes and to lead social development and achieve the Government’s social vision.
Our client-centred model and supporting IT infrastructure will enable us to enhance our service delivery to clients, responding to their individual needs while paying full and correct entitlements. Low unemployment and a buoyant economy give us the opportunity to intensify our efforts with specific groups, such as sole parents, people with ill health or disability, and the long-term unemployed.
We will continue to improve our systems, processes, and management, to ensure our frontline staff have the tools to deliver a high-quality service to our more than one million direct clients.
At the corporate level, bringing together our support and services functions is enabling us to take a more consolidated, organisation-wide view of the capabilities we need, and how to develop them. The new structure puts us in a better position to meet the following challenges:
- attracting, retaining and developing the right people in a tight labour market (HR strategy)
- equipping staff to take a social development approach, including work-focused, client-centred case management practices, processes and tools (HR and IT strategies)
- developing IT infrastructure to support the shift from transactions to outcomes (IT strategy)
- implementing a strategic financial management regime that allows us to cope with baseline pressures and to set priorities for resources (Finance strategy).
To improve the way we manage risk, we are adopting a risk management framework and an extensive programme of audits and evaluations. We have a zero-tolerance policy to internal fraud.
Our governance and management structures are improving communication among managers, and creating more opportunities for new and emerging leaders. They also give us the capability to add new services as appropriate, such as the funding programmes being transferred to the Ministry from the Department of Child, Youth and Family Services, and the community labour market development function transferred from the Department of Labour.
Looking ahead
Over the next three years we will further strengthen our capability to lead social development and complete our move to an outcomes-based approach.
At the corporate level, we will take an integrated approach to support the business that will focus on capability development and supporting systems and frameworks.
At the policy level, we will develop a capability strategy for the policy cluster that will assess our current capability and lead to implementation plans to secure skill shortages and develop our people to meet capability requirements.
At the service delivery level, we will strengthen our understanding of clients’ needs and ensure our services are meeting these needs. We will also ensure we have the right people, resources and infrastructure to manage FACS, increased funding role which comes into action on 1 July 2005, by leveraging off existing Ministry capabilities and functions such as contract management expertise. We will continue to work towards integrating client services where this adds value.
Our Strategic Business Plan describes what each business group will do to achieve our outcomes, and describes the enabling strategies that will ensure we have the right people, resources, and capabilities to support our business groups.
Our enabling strategies: backing the business to win
Our enabling strategies are developed and delivered by the People, Capability and Resources; Risk and Assurance; and Corporate and Governance groups. These strategies share the common goal of building the Ministry’s overall capability and enabling the Ministry to achieve its business strategies.
People, Capability and Resources strategy
Our people have the skills, environment, systems and resources they need to achieve outcomes for clients and for government. Our people feel respected, valued and connected to MSD. They have opportunities to reach their full potential and feel appropriately rewarded.
The following Human Resources, Finance, and Information Technology actions work towards this strategic goal.
Human Resources
Building our people capability is critical as our role and functions increase. Our key Human Resources actions are:
- Attracting the right people through effective recruitment strategies supported by clear profiles of the skills and talent required, and by continuing to build our reputation as a good employer.
- Building effective leadership through a leadership framework that will allow us to identify and develop our future leaders and emerging talent. This will include a process to identify and manage our talent that will facilitate ongoing career management supported by development plans, targeted experiential opportunities, and leadership and management development programmes.
- Strengthening staff capability through developing capability frameworks with each business group and supporting the implementation of these plans.
- Working with our people to help them to develop their skills and contribute to our success by providing staff development opportunities supported by an effective performance management framework that rewards and recognises staff achievement.
- Providing integrated and business-focused HR systems through strong partnerships with corporate units and other business groups, supported by effective information management and reporting.
Finance
A year-by-year approach to funding will not be sustainable in the long term, particularly as funding pressures on our baseline increase. Our key Finance actions are:
- costing and prioritising the Strategic Business Plan with a rolling three-year costed plan
- reviewing our 2005/06 baseline, seeking new money as needed, and developing alternative funding options
- building financial management tools and skills, and building the capability of the Finance Group.
Information technology
Our current technology systems and infrastructure are adequate and reliable for our existing business needs, but these business needs are changing rapidly. Our key Information technology actions are:
- supporting client-centred service delivery by improving access to client information and supporting shared delivery with other government agencies
- maintaining and enhancing our business-critical systems so our social assistance business strategies have full IT support
- ensuring each business group has access to relevant and tailored information
- strengthening the Ministry’s corporate capability, and the capability of the IT Group.
Risk Management and Assurance strategy
Our Risk Management and Assurance strategy is about providing assurance, adding value and advising managers on good risk management practices for the Ministry. Its strategic goal is:
Our risk and assurance processes are of the highest standard and the organisation is convinced they are important and relevant to achieving better social outcomes for all New Zealanders. Our monitoring and reporting is sophisticated enough to meet the needs of all stakeholders.
Risk and Assurance has developed a strategy to manage two kinds of risks: risks to New Zealanders not being able to achieve positive outcomes, and risks to the Ministry’s ability to achieve its goals and objectives. The strategy’s actions are to:
- enhance our risk-management processes
- provide robust audit and quality assurance
- prevent and detect internal fraud
- build our capability and capacity.
Corporate and Governance strategy
Our Corporate and Governance strategy is about providing proactive services and governance support that add value to our work. Its strategic goal is:
Active and collaborative corporate services, governance structures and processes. Effective, efficient and environmentally sustainable delivery of outputs.
Changes to our Leadership Team, resulting in more responsibility at Deputy Chief Executive level, and a progressive move to triple-bottom-line reporting, will change the requirements made of Corporate Services and Governance.
The four groups that comprise our Corporate Services and Governance need to act as a closely knitted unit to provide proactive and timely services. The Corporate Services and Governance strategy’s actions are to:
- strengthen our co-ordinated whole of Ministry approach to our work and planning
- encourage business groups to consider the implications of their work across the Ministry, and to work together more collaboratively
- enhance our governance frameworks to support the Leadership Team’s management
- implement systems and processes that support a triple-bottom-line management framework
- implement a communications strategy that promotes the role and functions of the Ministry
- implement a legal strategy to prevent and minimise legal risk
- ensure a “no surprises” and results achievement focus to our corporate processes.
Business strategies
The Ministry’s business strategies are grouped around our policy development and service delivery functions. Each main business group is responsible for leading a particular strategy.
Policy advice, research and evaluation
- Social Development Policy and Knowledge leads a strategy for Social Development Policy Advice, Research and Analysis.
- Social Services Policy leads a strategy for High Quality Social Services Policy Advice.
Service delivery
- Work and Income leads a strategy for Client-Centred Services.
- Specialist Services leads a strategy for Tailored Services for Discrete Nationwide Groups.
- Family and Community Services leads a strategy for Services to Families and Communities.
| Business Strategies |
|||
|---|---|---|---|
| Strategy |
Purpose |
Strategic Goal |
Actions |
| Social Development Policy Advice, Research and Analysis |
Leading policy development of strategic cross-sectoral and regional social policy issues to achieve the Government's social vision. |
Achieving the Government's social vision through leading a whole of government approach to social development. |
|
| High Quality Social Services Policy Advice |
Providing policy advice that supports and strengthens strong families and communities and improves outcomes for children and young people, working age people and older people. |
Sound policy advice on social issues enables the Government to make the right decisions on where and how to invest to achieve its short and long-term social goals. |
|
| Client-Centred Services |
Helping clients achieve economic independence through sustainable employment; and providing clients who are unable to obtain sustainable employment with their full entitlement to financial and other support. |
All Work and Income clients and their families receive the support, interventions and services that enable them to participate fully in the social, cultural and economic life of their communities.
|
|
| Tailored Services for Discrete Nationwide Groups |
Providing tailored services to tertiary students, low-income earners, super annuitants, and veterans; managing and preventing beneficiary debt. |
The benefit system is protected from abuse; New Zealanders are assured that benefits are reaching those who are entitled to receive them; our services deliver what is best for each client group. |
|
| Services to Families and Communities |
Making a difference for families and communities in New Zealand. We work with other organisations to support families and communities to be strong institutions, contributing to an inclusive New Zealand where all people are able to participate in the social and economic life of their communities. |
Strong families: strong communities. |
|
1 The Minister for Social Development and Employment is responsible Minister for the Children’s Commissioner, Families Commission, New Zealand Artificial Limb Board, Retirement Commissioner and Social Worker Registration Board.
2 These are set out in s27 of the Crown Entity Act 2004.
