the department of internal affairs Statement Of Intent 2010–13

MANAGING IN A CHANGING ENVIRONMENT

Operating environment

In addition to the Government’s expectations, there are a number of external factors that will affect our service delivery and the demand for our services. We will continue to monitor several external factors to ensure that our services are responsive and appropriate to the continually changing environment in which we work. Some of the challenges we face in our current operating environment are outlined below.

Economy

The global recession of the past two years has significantly affected the environment in which we work, limiting credit availability, consumer confidence and willingness to spend. In this climate, we will need to continue to find ways to provide our services efficiently and effectively within existing baselines.

Population

We live in an increasingly diverse society. Our communities are evolving and will continue to do so with changing family structures, an ageing population, and increasing ethnic diversity. We will continue to monitor demographic trends to ensure that our services and functions are responsive and accessible.

Technology

Advances in technology enable us to improve our service delivery to customers but also require us to continually adapt our tools and approaches to ensure that our risk management, enforcement, and regulatory activities are effective against offenders’ ever-evolving technology.

Service expectations

Customers’ expectations for services are continually changing. For example, advances in technology mean people have become accustomed to (and expect to be able to) do business at any time of the day, on any day of the week. We will seek to meet customers’ expectations while also providing accurate and effective services.

Environment

Natural and built environmental factors can also impact directly on the way we support people, communities and government. Changes, such as those to land use and vegetation, can either aggravate or mitigate natural processes that create hazards. Weather patterns associated with climate change and other issues will also impact strongly on our role in civil defence and emergency management. We will continue to monitor changes in the environment and will take account of these influences when considering the way we approach our work.

Risk profile 2010–13

The inherent risks for all public sector agencies – performance and productivity, capability investment, capital planning and asset management, technology cost and benefit realisation – are still relevant in the current environment and must be mitigated or managed.

In an environment of economic constraint, when agencies must also respond to the demands of new services and new expectations, these inherent risks become even more critical areas for an agency to actively manage.

The Department’s increased responsibilities in supporting other State sector agencies, such as with shared ICT services, mean that the risks associated with service quality, reliability and cost will be particularly relevant as we move into 2011. We must build on our reputation for delivering secure and effective technology, and demonstrate our expertise and commitment to working collaboratively with all of our clients and agencies to deliver on the Government objectives for the New Zealand public service.

Monitoring our risks

The Department operates a set of risk management practices and methodologies that are applied across the Department within a number of management and planning processes. These risk management processes are designed to provide managers and senior leaders with timely identification and comprehensive evaluation of any significant risks to achieving the Department’s outcomes.

All of the Department’s key projects and programmes are monitored through formal, standardised reporting processes. Potential risks relating to the non-delivery of a project or programme are continually tracked by tools that require progress against expected or forecast positions to be detailed. Any project or programme shown to be at risk is escalated for more detailed scrutiny and deliberation. Mitigation and management of any potential adverse impacts are made in real time, and are themselves tracked and monitored.

Departmental outputs and Statement of Service Performance measures are tracked through standard and formal reporting requirements. All business groups must provide current progress against expected targets and milestones at monthly intervals. Any at-risk target or project requires an explanation and corrective strategy to be identified for review by the Executive Leadership Team.

The following table summarises the key organisational risks over the next one to three years:

Key risks for the Department	Mitigation
Expectations to achieve cost efficiencies and value for money are not met	Performance and Productivity Improvement Programme (PPIP) underway Ensuring clarity and transparency on investment costs and service costs for all stakeholders and customers Strengthening project management to ensure efficient delivery of investment and capital plans Strengthening investment logic and business case disciplines to contribute to the overall State sector capital management capability
Change pressure, and sometimes competing priorities within agencies, can create risks to progressing cross-government initiatives	Early recognition of, and dialogue on, overcoming barriers or disincentives Ongoing relationship management with key agencies Early engagement and formal arrangements such as memorandums of understanding
The quality and responsiveness of services we provide are not maintained	Ongoing consideration of opportunities to improve on current service approaches and efficiencies Ongoing development of service performance measurement and reporting needs
The security and integrity of people, systems and/or information are compromised	Reinforcing and maintaining public service codes of conduct Maintaining and enhancing departmental policies and practices that manage security risk Ensuring security and integrity requirements are rigorously adhered to and there is an immediate and effective response to any lapse or breach
Technology infrastructure and capability are unable to support changing organisational and public sector IT systems and services	New GTS group structure supports a focus on investment delivery, asset management and service delivery for ICT shared servicing ICT governance and assurance mechanisms have been extended to respond to and consider all-of-government, multi-agency and single agency service and support requirements
We are unable to retain or build the necessary capability to deliver agreed outputs	Systematic approach to building key behavioural competencies and the development of a new competency framework Develop our leadership and management capability to respond effectively and productively in a changing operating environment Maintaining the fundamentals of good practice recruitment, retention and engagement of our staff Review and update our People Strategy to build capability and address future needs.

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