Statement of Intent 1 July 2007 - 30 June 2010
Part 1: Strategic framework (continued)
Measuring our performance - our performance framework
Outcomes and benefits
The Ministry recognises that it would be useful to frame the cost effectiveness information described above in terms of the benefits to the Minister and stakeholder groups, and where practical to adopt a consistent approach for seeking qualitative based information which is aligned to defence objectives and outcomes.
The Ministry intends that its stakeholders are confident that its programmes, projects and activities are:
- improving the performance and capability of the defence sector to achieve security outcomes through effective risk-intelligence based actions and effective military equipment procurement (the descriptive benefits associated with providing intelligence, risk advice and confidence)
- improving the ability of New Zealand to meet national security challenges and achieve intermediate defence force outcomes and defence policy
- providing value for money through provision of information that consistently demonstrates strong linkages between the Ministry’s three output class activities, which is based on robust Ministry-wide risk management and performance management disciplines.
National identity
By focusing on the impacts of the Ministry’s activities in a cohesive and consistent manner, the Ministry will be able to clearly demonstrate how it contributes to the Government’s priority of “National Identity”. “National Identity” is one of three priority themes of government, whereby all New Zealanders are to be able to take pride in who and what we are, through our arts, culture, film, sports and music, our appreciation of our natural environment, our understanding of our history and our stance on international issues.
Development goals
The Ministry will also be able to demonstrate progress towards meeting the Development Goals for the State Services. These outline the future direction for New Zealand’s State Services and aim to ensure a system of world class professional State Services serving the government of the day and meeting the needs of New Zealanders. The Ministry will place particular emphasis on the following goals:
- employer of choice – that ensures the State Services is an employer of choice attractive to high achievers with a commitment to service
- excellent State Services – that develops a strong culture of constant learning in the pursuit of excellence
- co-ordinated State agencies – ensures the total contribution of government agencies is greater than the sum of its parts.
Ministry of Defence’s risks
The Ministry has identified the following key strategic risks:
Failure of acquisition projects
Risk
- A failure in one or more of the Ministry’s acquisition projects, whether in terms of timing, budget (almost invariably very large), deliverables or any other key aspect of a project, will have a significant impact on the Ministry – including in terms of its reputation and credibility. In addition, the Ministry’s acquisition projects frequently require assessment and purchase of high-cost equipment, which is still under development.
Management strategy
- Each project undergoes comprehensive risk analysis and utilises independent risk consultants to identify project-specific risks at the outset of the acquisition process.
- Undertaking effective monitoring and reporting through the project’s duration, including audits by Audit New Zealand and the Ministry’s Evaluation Division.
- Maintaining and enhancing quality and capability of our acquisition project people, through policies which ensure high professional standards, integrity and objectivity and require peer reviews and quality assurance regimes.
- Ensuring each project has appropriate support in terms of suitably qualified staff and satisfactory support arrangements for staff posted overseas.
Failure to recruit and/or retain staff
Risk
- The Ministry is one of the smaller government departments, which means that the Ministry’s staff are “mission critical” to the organisation. Loss of one staff member may have a serious impact on not just major projects, but the full range of all the Ministry’s outputs.
- Recruitment, as well as retention, is increasingly being put at risk as a result of heightened security checks undertaken on prospective employees, which can take up to six months to complete.
- The Ministry’s ongoing ability to attract and retain suitably qualified staff, including staff based offshore, and maintain investment in their development, is at risk if we cannot maintain our competitiveness and attractiveness as an employer.
Management strategy
- High-level engagement to facilitate more efficient and timely security checks.
- Reprioritisation of existing resources to ensure funding for enhanced employment opportunities while exploring opportunities for increased baseline allocation for enhanced employment arrangements.
- Proactive recruitment programme.
- Maintaining and enhancing quality and capability of our people through policies which ensure high professional standards, integrity and objectivity and require peer reviews and quality assurance regimes.
Not maintaining credibility and reputation
Risk
- Any damage to the credibility and reputation of the Ministry would seriously impair its effectiveness, particularly in terms of its role in supporting New Zealand’s defence and security objectives. Such damage could occur as a result of any failure in the Ministry’s outputs, including a failure to adequately respond, react, or envisage changing defence and/or security circumstances or to adequately fulfil our remit to provide robust, independent civilian policy advice.
Management strategy
- Strengthen management and organisational processes within the Ministry and with the New Zealand Defence Force, whilst continuing to retain the statutory independence of the Ministry’s role vis-à-vis the New Zealand Defence Force.
- Provide the necessary corporate and operational support to the Ministry’s acquisition and/or policy areas.
The Ministry’s management of risk is supported by:
- evaluation reports produced by the Evaluation Division on the Ministry’s acquisition activities
- oversight of the policy and acquisition activities by the Executive Capability Board and Office of the Chief Executives (both having joint Ministry and New Zealand Defence Force representation)
- consistent Ministerial and other agency feedback on our activities.
