Trans Tasman 2016 New Zealand Government
Departments Review - Many Changes In The State Sector,
But Some Things Remain The Same.

This is the 7th annual review of NZ's Government Departments by the Trans Tasman Editors and Senior Writers and a high profile Independent Board of Advisers.*

This year the Independent Board of Advisers has again selected Peter Hughes from the Ministry of Education, and soon to be State Services Commissioner, as CE of the Year, while the Accident Compensation Corporation is once again Department of the Year.

Hughes has now been named CE of the Year four times, and his work at the Ministry of Education shows how leadership can make a dramatic impact in an agency and how many other agencies are being let down by lack of leadership, not just from their CEs, but also their Ministers.

The Board of Advisers once again casts the finger of blame at the State Service Commission and there is definite relief Commissioner Iain Rennie has decided to step down. Last year the advisers made a strong case for Hughes to step into the hot seat when Rennie's term ended, and this has come to pass.

But Hughes will find it tough going. The Commission is effectively on a last warning. If the country’s best state sector leader can’t boost its performance it is likely to be rolled up and placed under the auspices of the Department of Prime Minister and Cabinet.

The Advisers were once again glowing in their praise for Hughes.

“Education no longer a basket case under his watch, rewarded with the top job as State Services Commissioner.”

“Amazing improvement in a short time.”

“Made great strides to getting Ministry out of the public scrutiny - has much greater focus on what it should be doing.”

“Ministry of Education's loss is New Zealand's gain as he moves to take over the SSC.”

“Hughes a class act.”

The Accident Compensation Corporation is the Government Department of the Year. It is now in a strong position - the advisers were impressed with it and CE Scott Pickering.

“Good operator.”

“Really feel they are getting ahead of the game in terms of an investment approach to reduce long term costs.”

“Pickering has taken the controversy out of ACC - evidenced by a big improvement in public trust and confidence in the agency.”

“Working the best it has for many years. Smart management of funds.”

“Extensive reform programme implemented well.”

“Making good progress off the radar and levies are reducing.”

This year the public service come to the end of an era with the departure of State Service’s Commissioner Iain Rennie. The Report notes “it would be fair to say parts of the public service have been in something of a hiatus in recent years with neither Ministers nor CEOs expressing unalloyed joy with the outgoing Commissioner Rennie. Is this unfair? Possibly, but it is one of the consequences of having someone in a CEO slot for eight years. One of the problems for Rennie is his position has been the focal point for Ministers frustrated by slow progress and departments pushing back at the change he tried to oversee. The Commissioner’s job can be likened to the chief herder of cats – very clever and stubborn cats.”

The Report’s authors add ”continuity is one thing but unless carefully managed and nuanced, it can be limiting. If there is a single element emerging from our survey of the public sector, it is the need for fresh enthusiasm from the top. ‘Let’s engage with new thinking and see how it can mesh with the Government’s intention’ is a common theme.”

Resistance to change is evident, but futile. “To be sure there is frustration in some parts with the Government’s Better Public Services initiatives - but there is also a willingness among the sharper CEOs to get on with the work which underpins the Government’s objectives. There is also recognition with Finance Minister Bill English and now Associate Paula Bennett, there are two individuals who are determined to energise, refresh, innovate and make the differences which matter. It helps English has an intimate comprehension of the how the machinery of Government should work.”

The Board of Advisers again notes a weakness among some junior Ministers. Maggie Barry and Louise Upston are in the firing line this year, both feature twice in the bottom 10 of the rankings for the best performing Minister in terms of having their policy ideas turned into reality.

There is also continuing concern over the rising power of the Ministry of Business, Innovation and Employment and the growth of the Department of Prime Minister and Cabinet

After an initial honeymoon period MBIE is starting to cop a high degree of flak from the advisers:
“Too big, no strategic direction, meetings, meetings. meetings.”
“MBIE epitomises the stereotype of a bloated bureaucracy.”
“Lost momentum as is distracted by its spending excesses.”
“Difficult role as MBIE has turned into such an amorphous beast.”
“Too many unsynchronised moving parts.”
“Things are not tracking in the right direction.”
“Too many silos not working together.”
“MBIE still seem like a disjointed collection of lost souls.”
“It can be quite hard to find the right person dealing with an issue.”

The Department of Prime Minister and Cabinet gets mixed reviews:
“A good year for Kibblewhite and DPMC; some big brains and safe hands housed in this agency.”
“Runs like clockwork.”
“Business as usual.”
“Is DPMC providing the leadership it should and which is necessary?”
“DPMC started out as a think tank but now appears to be more of a briefing tank, a sort of eyes and ears for the PM to keep an eye on Ministers and departments. It would be interesting to return to the original model.”

Some Winners Among other Department CEs
Naomi Ferguson - IRD - UP from 4.85 to 5.08
Liz MacPherson - Statistics NZ - UP from 4.93 to 5.07
Vicky Robertson - Ministry for the Environment - UP from 3.75 to 4.58

Some of the group who went the other way
Pauline Winter - Ministry of Pacific Peoples - DOWN from 3.82 to 3.25
Fergus Gammie - NZ Transport Agency - DOWN 4.92 to 4.17
Graeme Wheeler - Reserve Bank of NZ - DOWN from 4.88 to 4.23

The clear theme to emerge from the report this year is how important the State Service Commission could be in setting the direction for overall performance, especially given the relatively weak performance of some Ministers and CEs. As always, good leadership is the key.

*The Review of the Government Departments is divided into two parts.

In the first section a high powered Board of Independent Advisers looks at the state sector from a user's point of view, running their eyes over the agencies based on a number of metrics. They answer a questionnaire, published in the Review, and provide their own rankings and comments on the departments, their CEs and the Ministers who run those Departments.

The other part of the Review is compiled by Trans Tasman's editorial team - some of the sharpest minds in the game. They take a measured look at the Departments, where they have been over the past 12 months, and where they are going. The two groups have no contact with each other and their views are sometimes contradictory, but more often, coincide with one another on their analysis of the organisations involved.

ENDS

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