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Enhancing capability and improving our performance

Achieving the goals and outcomes identified in this Statement of Intent means the Ministry must continue to develop its capability and improve its performance.

Capability in this context is the ability to attract, develop and retain the right combination of people; to involve the whole community in the governance of the environment; and to operate robust, future-proof, practical systems and structures.

To do this we need to:

  • provide a clear strategic direction, lead by example and appropriately measure our achievements
  • constantly engage with our stakeholders
  • treat our staff with utmost importance, reward them appropriately and provide opportunities for them to grow
  • continue to improve our corporate systems thus making us more transparent and efficient.

Capability in setting strategic direction

Environmental governance issues are complex. It can be difficult to determine the most effective points for government intervention and there are often no direct causal links between outputs and the outcomes we seek. This means we may need to develop our capability to produce better information to help Ministers prioritise activities so they make the greatest contribution to achieving the Government’s outcomes.

The previous Statement of Intent saw our outcomes refined from 13 to seven. This year we have retained the same outcomes, giving greater consistency to our work programmes and our ability to reach our long-term objectives. This Statement of Intent also more clearly aligns our key work programmes with the outcomes and relevant tools for measuring progress.

Also clearer within this Statement of Intent is how we will measure our progress. We recognise that it is important to measure both what we do, in terms of our outputs, as well as measuring the state of the environment, in terms of our work areas. This higher-level measurement, which is affected by more than just the Ministry’s actions, is often very difficult to undertake, particularly for a policy-focused entity. However, such measurement will make us more efficient in developing our strategy, and is important knowledge to gain. Such gains will almost certainly have flow-on effects for other stakeholders involved in managing for the same environmental outcomes.

Over the next three years we will focus on:

  • identifying and using opportunities to improve capability and performance
  • aligning activities with outcomes
  • aligning with, measuring and reporting on outcomes
  • developing cost-effectiveness measures
  • developing measures of our work programmes.

Partnering with stakeholders

We share the environment stage with a variety of stakeholders, each with their own charter and responsibilities. Working and communicating successfully with them is integral to the Ministry’s success.

Good governance of the environment requires collaboration with many stakeholders, so that together we can achieve the best possible environmental outcomes.

We will continue to focus on strengthening our relationships with stakeholders, while maintaining traditional relationships with Ministers. We will achieve this by strengthening and maintaining open lines of communication and continuing to develop working relationships with a broader range of stakeholders. We will also do this by “getting out there” engaging, consulting and running such events as the Talk Environment Roadshow. In partnership, we will develop a common approach to awareness, governance and intervention.

Human resources capability

The Ministry needs the staff capability to achieve its goals and outcomes. To be recognised and respected sufficiently to influence the behaviour of others, we must build our leadership capability while significantly developing our ability to build strong working relationships with a wide range of groups and organisations, both within and beyond the public sector. To reach these goals the Ministry will need to be considered an employer of choice to gain the right mix of people.

We have a human resource strategy designed to:

  • continue to develop our leadership and management capability
  • encourage an innovative culture that motivates people to make things happen and reinforces a spirit of service to New Zealand and its community
  • ensure we recruit and retain high quality staff with the capability to deliver our outcomes
  • create an open, friendly work environment
  • enhance human resource information systems to provide more effective management human resource information.

Key investments to implement this strategy are:

  • a leadership programme for all staff
  • extensive investment in staff development – training and coaching programmes encouraging a strong culture of constant learning
  • a climate survey that monitors staff morale and areas for improvement
  • a graduate recruitment programme
  • regular social activities to ensure staff interaction
  • an on-line Human Resource system available to all staff – eg leave and training modules
  • staff performance assessment.

Robust corporate systems

To support a culture of leadership, capability and excellence, appropriate corporate systems are needed. The Ministry continually works towards having systems that provide staff with the support they need, while ensuring that rigorous management checks and measures are maintained. Our systems will reflect our design to integrate seamlessly with a whole-of- government system. Our focus for the next three years will be on:

  • implementing the Ministry’s information strategy
  • refining corporate support systems to match changing requirements
  • maintaining appropriate and flexible financial and human resource management systems
  • where possible, automating functions and reporting.

Quality standards for policy advice

The Ministry has a number of policies, standards, best practice documents and standard operating procedures to ensure that its service performance remains at an optimum level. These standards are applied to all aspects of our organisation, and are maintained through internal processes to ensure the quality of our policy advice. Such processes include peer review, and consultation within the organisation and with relevant external agencies.

The General Managers also regularly work with the Chief Executive and the Deputy Chief Executive, with all issues discussed at weekly meetings to ensure that work programmes remain consistent with the Ministry’s core objectives. One change in the near future will be the requirement for all monthly reporting to be on an outcome rather than output basis.

Measuring success

It is important for the Ministry to know how we are doing and to demonstrate what difference we have made. We make use of rigorous monthly reporting on all activities and monitor our organisational performance in terms of our strategic goals. In this Statement of Intent, we have an increased focus on measuring our progress over three years, with greater emphasis placed on linking our measurement to our Annual Report.

The focus of our organisational performance measurement is on:

  • achievement against planned targets
  • meeting stakeholder needs, particularly output delivery for Ministers
  • the strength and quality of stakeholder relationships
  • creating value in outcomes for stakeholders (making a difference)
  • robust management controls.

Risks to achieving success

The greatest strategic challenge facing the Ministry is determining and delivering on our given mandate and where we can make the greatest difference – as opposed to what we ‘can do’ or ‘could do’ to enhance the management of the environment. There is a constant risk that we will get pulled in too many directions and end up stretched too thinly. While the expectations of our stakeholders are high, they often have conflicting values. This can create an ongoing tension in dealing with environmental issues and governance.

The key business risks are:

  • We will continue to be under pressure to adopt new priorities and consider new issues. While there will sometimes be new tasks that we must take on, we need to keep to our strategic focus and complete what we start.
  • Our aim is to work more closely with other organisations – such as other central government agencies, local government, community and industry – not all of whom agree on the issues or agree with our approach. Developing the respect of others and maintaining effective working relationships with them is critical to our effectiveness.
  • To achieve the outcomes and goals in this Statement of Intent, we need to recruit and retain highly skilled and knowledgeable staff. They must be able to provide leadership and work in partnership with stakeholders who have differing views and priorities. However, we are competing in a labour market of high demand that places a premium on the skills we need and value.

The key operational risks are:

  • We must focus on the environmental issues seen as the greatest risks and manage them appropriately. This also requires an emphasis on timely action.
  • We must be aware of, and respond to, the economic, social and political context in which we are working. We must recognise the economic impact of any regulatory intervention, including the economic and health benefits of appropriate action.

Crown risk

Alongside the departmental risks mentioned in the previous paragraphs, there exists a financial risk with the Kyoto liability. This relates to our contribution under the Kyoto Protocol, in which New Zealand committed to reduce emissions in the period 2008-2012 down to the levels in 1990. The provision for this liability is affected by key factors that include the exchange rate and the international price of carbon. Other factors influencing the position of this liability include changes in oil prices, the weather, economic growth and changes in forestry activities, all of which are outside of the Ministry’s control.

Cost-effectiveness

The Ministry is currently investigating options for developing and implementing effectiveness and efficiency measures and monitoring for key environmental programmes with an aim to communicate this in next year’s Statement of Intent. One of the challenges we will be working through is how to measure the effectiveness of individual programmes when many environmental issues are complex and often have long time lags before good environmental outcomes are apparent.

Major evaluative activities

Evaluating our priorities and work programmes is very important to the Ministry, not only for our internal processes and the functioning of the entities we monitor, but also that we are peer-evaluated to ensure we are on the right track to achieve our desired outcomes. Major evaluative activities that have occurred in the last financial year include reviews of climate change policy, the policies and procedures of the environmental legal assistance fund, a review of our policies for contracting with non-governmental organisations, and a review of New Zealand’s environment centres, particularly with respect to the centres’ alignment with the Ministry’s desired outcomes and priorities. The results of all of these have been, or are being, implemented.

We assist with SSC-led reviews of agencies over which we have monitoring responsibility. In the past year, this has included reviews of the Bioethics Council and of the energy sector (including the role played by EECA).

We also contribute to international reviews of New Zealand’s environmental performance. Each decade or so, for example, the OECD peer reviews each participating country’s environmental performance, and New Zealand’s environmental performance is currently under review. The OECD report will be finalised in late 2006 and published in early 2007. It will cover all aspects of environmental performance, including:

  • water quality
  • waste
  • nature and biodiversity
  • the environment – economy interface
  • implementing environmental policies
  • social and the environment
  • international cooperation.
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