Strengthening Our Capability

Continuing to develop our organisational capability

The process of change is ongoing for the Department as we combine and evolve the groups from which we were formed into one organisation. The building and housing sector is also undergoing considerable change, in large part because of the reforms that are under way. To succeed in this environment and fulfil our role, we are committed to building a sustainable, adaptive organisation, with a culture of pride in professional excellence, a willingness to work with others to build our knowledge and understanding, and to achieve results.

We will continue to build our organisational capability based on the State Services Development Goals .

1. Employer of Choice - ensure the State Services is an employer of choice attractive to high achievers with a commitment to service.
2. Excellent State Servants - a strong culture of constant learning in the pursuit of excellence.
3. Networked State Services - use technology to transform the provision of services for New Zealanders.
4. Coordinated State Agencies - ensure the total contribution of government agencies is greater than the sum of its parts.
5. Accessible State Services - enhance access, responsiveness and effectiveness, and improve New Zealanders' experience of State Services.
6. Trusted State Services - strengthen trust in the State Services, and reinforce the spirit of service.

Our development priorities

Our intention is to develop a flexible and responsive organisation that can adapt to changing circumstances. Our aim is to ensure the organisation is 'fit for purpose' and we deliver on our role in a way that adds value to the Government, sector stakeholders and consumers alike.

We have reviewed our capability with both our Outcome Framework and the State Services Development Goals in mind. We have developed a programme for the forthcoming year and beyond based around five priority areas.

1. Building appropriate staffing capability and skills.
2. Developing leadership and management capability.
3. Strengthening our capability for monitoring and advising on Crown entities and statutory boards.
4. Developing and enhancing business systems to enhance service delivery, improve data and knowledge, and to strengthen capability.
5. Strengthening our relationship building capability with the building and housing sector.

Building appropriate staffing capability and skills

The Department is actively seeking to build its permanent staffing capability and skills. Recruitment of staff is a key priority for the Department. We have in place a Recruitment Strategy that has as a key goal getting the right people with the right skills (or potential to develop the right skills) in place.

The appointment of second- and third-tier managers to drive recruitment and capability building throughout the Department has been a key focus. This focus will continue. In addition, work will be done on better definition of staff roles, and the related authorities, accountabilities and skills needed for these roles. This is to ensure staff training is aligned with organisational skill requirements and delivers value.

Developing leadership and management capability

Effective leadership through change is critical to the successful development of the new Department. Some parts of the organisation have already undergone, or are going through, considerable change (Tenancy Services, Weathertight Homes Resolution Service). Others will follow as the organisation evolves. Change will be a constant. The initial focus has been on the Strategic Leadership Team's role in leading the organisation through change.

In late 2005 the Strategic Leadership Team took part in a leadership development programme which was the first step in establishing a consistent leadership approach and management framework across the organisation and identifying areas for focus. The Strategic Leadership Team has followed its participation in this leadership programme with a series of workshops and is committed to carrying on with this work.

Leadership programmes tailored to the needs of our second- and third-tier managers and team leaders will be run in 2006/07. This will be an ongoing programme and all managers will have the opportunity to participate.

Planning is also under way to develop a core management training programme to assist new managers and existing managers to develop the requisite core financial, human resource, business planning and communication skills.

Strengthening our capability for monitoring and advising on Crown entities and statutory boards

Housing New Zealand Corporation is the single largest landlord in the country. It controls significant financial and other resources and manages housing assets valued at around $11 billion. Our advice on, and monitoring of, the Corporation must be of the highest standard to provide the appropriate support to the responsible Ministers - the Minister of Housing and Minister of Finance. In 2006/07 we will invest further in developing our capability to perform this role, and also to provide advice to the Minister for Building Issues on statutory boards.

Developing and enhancing business systems

Information technology systems are a key contributor to achieving our business strategies and outcomes. We are committed to implementing information technology systems that:

• enhance service delivery: our systems will directly improve the quality of our service, improve access for our clients and enable the Department to better connect with the communities it serves
• grow the sector knowledge-base: our systems will support the development and dissemination of information to and across the sector, as well as gathering and collating information that will enable well-informed policy advice and operational decisions.

Our organisational development priorities over the next 3 years include:

• establishing a national, consolidated voice and data network that will enable us to effectively mobilise our Tenancy Services workforce, extending our services over a greater geographic area
• upgrading our human resource business application systems to better assist managers with more accurate and useful online data
• developing a knowledge management system to better meet our statutory record-keeping requirements, knowledge management initiatives, and e-government metadata standards and principles
• introducing a customer management system to support our nationwide call centre, both now and to provide for future expansion
• enhancing our financial data and reporting systems to better assist managers in understanding and managing their financial responsibilities.

Human resource systems are an important shaper of organisational culture and underpin organisational performance. Work on developing a comprehensive suite of appropriate human resource systems is well advanced. We have designed and implemented new performance development and remuneration systems. Over the coming year we will bed down these systems and deepen staff and managers' understanding of them.

Strengthening our relationship building capability with the building and housing sector

The Department is committed to building its capability to work with the sector to implement reforms in the building sector and at local government level in a way that is practical and 'do-able', and supportive of the changes required. We will develop greater capability (skills and systems) to enable early and active engagement with the sector on policy development and regulatory system design and technical advice. We are working closely with territorial authorities, as regulatory partners, to assist in the development of their systems and skills, and to support the changes they need to make to become accredited building consent authorities.

How we will monitor our organisation's health

We are committed to ensuring we have the capability required to perform our functions and conduct our operations effectively and efficiently. The following table sets out some of the indicators we will use to help us monitor organisational health and capability.

Organisational health indicators
Internal controls The Treasury's Departmental Internal Control Evaluation (DICE) rating
Staff capability and capacity Vacant positions as a percentage of total positions (rolling 12-monthly average) Rolling 12-monthly staff turnover Percentage of approved positions filled by contractors (rolling 12-monthly average)
Health and safety - staff wellbeing Accident frequency Accident severity Sick leave incidence
Performance development Percentage of performance development process expectation letters completed Percentage of performance development process annual review letters completed