Letter - State Services Commissionssc.govt.nz/sites/all/files/2015-four-year-plan-guide.docx · Web...

2015 Four-year Plan Guide

August 2014

ISBN: 978-0-478-40960-4

T r e a s u r y : 2 8 9 0 5 7 6 v 1 1

T r e a s u r y : 2 8 9 0 5 7 6 v 1 1

ContentsPart A: Overview1. General Information...........................................................................................................2

1.1 What is a Four-year Plan?..........................................................................................2

1.2 What is the process?..................................................................................................2

1.3 What is the scope of Four-year Plans?.......................................................................2

1.4 What is happening with Four-year Plans this year?...................................................3

1.5 What does a good Four-year Plan look like?..............................................................4

1.6 How will they be used?...............................................................................................5

1.7 How does it all fit together?.........................................................................................6

2. What’s New?......................................................................................................................9

2.1 Key changes this year.................................................................................................9

2.2 Greater ownership by departments...........................................................................10

2.3 Greater alignment with Performance Improvement Framework (PIF) and thestrategic intentions processes...................................................................................10

2.4 Stronger evidence of collective impact and action....................................................10

2.5 Flexibility to account for this year being an election year.........................................13

3. Information to know before starting your Four-year plan.................................................15

3.1 Financial basis..........................................................................................................15

3.2 Sensitive information.................................................................................................15

3.3 Supplementary resources.........................................................................................15

3.4 Other planning documentation..................................................................................16

4. Process and Engagement................................................................................................17

4.1 Agreeing agency-specific approaches to Four-year Plans.....................................18

4.2 Engagement and support from central team on the Four-year Plans.......................18

4.3 Engagement with Ministers during the development of Four-year Plans.................19

4.4 Relationship between the Budget process and 4YPs...............................................19

Part B: Components of the PlanFour-year Plan Components...................................................................................................22

ANNEXES...............................................................................................................................28

Annex 1: Workforce Capability, Capacity and Costs Information...........................................28

Annex 2: Supporting financial information..............................................................................34

Annex 3: Asset management and investment intentions........................................................42

Annex 4: Key Assumptions and Resilience............................................................................44

Annex 5: Crown Entities..........................................................................................................47

Annex 6: Anticipated funding requests...................................................................................48

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Part C: Considerations for developing plansIntroduction......................................................................................................................52

Checklist/Central team feedback questions.....................................................................52

Regulatory Planning Expectations...................................................................................56

Property Management Guidance.....................................................................................57

Information and Technology Guidance............................................................................59

2 01 5 F OU R - YEA R P LA N GU ID E ii

Four-year Plan Part A: Overview

August 2014

P AR T A : O VE RV IE W

1. General InformationThis guidance, refreshed from last year, is a core resource available to assist agencies in producing their Four-year Plan. It has three parts:

A. Overview – useful for all those involved in developing a Four-year Plan.

B. Components of the Plan – provides a template for what should be included in the Plan.

C. Considerations for developing plans – provides more detail on the questions and expectations that the central team have when engaging in and providing feedback on the Plans; including expectations regarding regulatory plans, property management and ICT.

1.1 What is a Four-year Plan?Four-year Plans (hereafter referred to as 4YPs) are designed to provide an integrated view of an agency’s (or sector’s) medium-term strategy. They set out what the agency is seeking to achieve and how it plans to achieve this. It sets out how the agency intends to address the challenges facing the delivery of its strategy, including how it will manage within existing funding levels.

4YPs support the Government’s decision-making around priorities and allocation of resources.

1.2 What is the process? Four-year plans will be in two stages this year:

Stage 1: Draft 4YP due (20 November 2014). These will be a ‘state-of-play’ 4YPs for incoming Ministers which are prepared and signed off by the Chief Executive, and will represent the position prior to engagement with the incoming Minister(s).

New policy initiatives will be collected separately, with the bids identifying consistency with and any implications for the 4YP medium-term strategy.

Stage 2: Final 4YP due (post Budget decisions – by Budget day or as soon as practicable thereafter). Final 4YP, with the strategic intentions endorsed by the Minister, need to be lodged in CFISnet.

1.3 What is the scope of Four-year Plans?Agencies are encouraged to consider how best to reflect the sector(s) they are in. For some this may mean developing a Sector 4YP that covers all the components of a 4YP, for some this may mean developing a common sector strategic direction with the other components of the 4YP being agency specific, and for others this may mean referencing how the agency contributes towards sector objectives and works with others in the sector through the document. If a Sector 4YP is developed then all agencies in the sector and all of their activities need to be visible in the Sector 4YP; in particular in the financial and workforce elements of the plan. In the rest of this guidance document the term “agencies” should be taken to read “agencies or sectors as appropriate”.

2 0 15 F OU R - YE AR P LA N GU I D E 2


Agencies should talk to their central agency team on what approach to take. One thing agencies will need to consider in determining how to structure their 4YP is the whether they also intend to use the strategic intentions component of the 4YP as their published strategic intentions (see section 1.7).

Where a department is funding a Crown Entity through its Votes then the 4YP needs to cover the Crown Entity as well. This could be achieved along the lines mentioned above or through specific reference to the Crown Entities in the agency’s 4YP. At a minimum the 4YP needs to provide an overview, from the monitoring agency’s perspective, of the strategic intentions of the Crown Entity; how the Crown Entity contributes towards the government’s priorities and cross-agency initiatives; an overview of the financial situation; and risks to the achievement of the Crown Entity’s strategic intentions.

All Votes administered by Departments should be included in a 4YP. All appropriations, both departmental and non-departmental are included in the scope. Benefits and other unrequited expenses and borrowing costs should be excluded, unless agencies consider there is specific merit to including these.

There is also an expectation that plans will reflect the stewardship expectations on Chief Executives that now exist as a result of legislation changes. 4YPs should provide a complete view across the next four years of your agency’s strategy and plan for delivery. We recognise that for some agencies a 4YP may be a partial view of a longer-term strategy. Any major risks around sustainability beyond the four year horizon should be identified.

1.4 What is happening with Four-year Plans this year?This guidance outlines a number of changes (see section 2 for more detail) to the 4YP process and expectations. These changes have been driven by the feedback we have received, our evaluations of last year’s plans, our ambitions for the next set of plans, and the fact that this is an election year.

Our ambitions for this year are:

4YPs become the key strategic planning documents for agencies, with stronger links to Four-year Excellence Horizons and providing the strategic intentions for publishing and tabling in Parliament – see sections 1.7, 2.2 and 2.3.

There is stronger evidence of collective impact and action, including agencies indicating how they plan to take a citizen focus and population-based approach to service delivery.

The approach and process is flexible to support post-election briefings and Budget 2015 requirements (see section 2.5).

Stronger feedback loops are provided to agencies from central agencies, Result leads, and functional leads (the central agency team).

4YPs provide greater investor confidence in an agency’s ability to deliver its strategic direction, including contributing towards the Government’s priorities, within its baselines in the most effective and efficient way (“investment ready”).



1.5 What does a good Four-year Plan look like?Good 4YPs are the product of good planning and strategic conversations held within and between agencies. They provide insights into these conversations; in particular where these conversations have landed.

What a 4YP will look like will vary for each agency depending on its particular strategy, what challenges it is facing and where it is at on the strategy cycle. This guidance document sets out the core components that should be included in a 4YP along with a number of Annexes that must be attached.

How your agency sets out the main body of your 4YP is up to you, but each 4YP should:

set out a compelling narrative on what your agency is seeking to achieve and what it will do to achieve this – this could simply summarise your agency’s existing strategic intentions if this is the most up-to-date articulation of its strategy

set out how the agency is drawing from and responding to its Four-year Excellence Horizon

set out how your agency will organise itself to deliver on its strategic intentions over the next four years and demonstrate that it has thought through the challenges in doing so, including highlighting any key decision points, trade-offs and actions arising from key functional areas (eg, workforce, finance)

demonstrate how your agency will contribute towards achieving the Government’s priorities; including the Better Public Services (BPS) Results

demonstrate, where relevant, how the agency is better targeting efforts and improving services for citizens and business; including being able to identify the agency’s customers and the characteristics of the customers that are relevant, and how the agency is using information to take a more evidence-based and solution-focused approach to its set of interventions

demonstrate how your agency is engaging with its sector. In some cases this might be through a shared sector strategy and in other cases how the agency is working with the other agencies in its sector (both within and outside of government)

demonstrate, where relevant, the actions your agency is taking that will contribute towards achieving the leadership strategies/objectives for ICT, procurement and property

provide evidence that your agency can manage within its existing funding levels over the next four-years and sets out the key decisions, trade-offs and actions that are required for it to do so

demonstrate that the agency understands how it is delivering value for money and what its cost drivers and pressures are and how it will manage these, including how it has/will identify its lowest priority activities or any poor performing activities

indicate how the agency will monitor its performance against the 4YP (eg, through the inclusion of deliverables, milestones, measures or a dashboard of key performance metrics).



A good 4YP provides a succinct overview of an agency’s plans to deliver its strategic intentions. A 4YP is not a mechanism for setting out your agency’s bids for new resourcing although it should identify cost pressures and options for managing these. A more detailed set of questions that central agencies will use to engage and provide feedback on 4YPs are set out in the Part C of the Guidance.

1.6 How will they be used?4YPs have a range of uses for agencies themselves, for Ministers and for central agencies, Results leads and functional leads.

For agencies, 4YPs will provide:

a framework for pulling together and integrating the different planning processes that are taking place within agencies

a way of telling an integrated story setting out what the agency wants to achieve and what it will do to achieve it

a platform for engaging with Ministers, central agencies, Results leads and functional leads to profile their medium-term strategy and plan, and to set out the key decisions and trade-offs facing the agency

the strategic intentions story that can be published and presented to Parliament

a base for reference and performance monitoring.

4YPs will be used by Ministers:

to confirm that agencies are clear on their direction, and are organised to deliver over the medium-term within baselines

to understand agencies’ strategy and proposed actions in relation to government priorities (eg, delivering the BPS Results; progressing Canterbury Rebuild; supporting the strategies/objectives for ICT, procurement and property; and taking a citizen and population-based approach to service delivery)

to review the priorities, performance, pressures and risks of agencies

to highlight the strategic choices, options and opportunities that Ministers can progress

as a basis for forward decision-making, including the allocation of resources

to inform the setting of indicative new spending intentions and priorities for Budget 2015 and beyond and to assess the relative value of new initiatives in comparison to existing funding.

4YPs will be used by central agencies, Results leads and functional leads

to understand what agencies will do to achieve Government priorities and objectives and then as a basis to monitor the performance of the agency in achieving these

as a basis for conversations to understand and support agencies to deliver on these priorities, and to manage related resource pressures and challenges (including opportunities, risks and pressures relating to Crown entities monitored by the agency)



to identify and inform advice and decisions at the agency level and whole of system level, such as workforce interventions (where a number of agencies are identifying similar workforce pressures) and opportunities and intentions to deliver or use shared or common capabilities

to support advice to Budget Ministers during the Budget 2015 process on whether they can have investment confidence in agencies (are agencies “investor ready”?) and the relative value of investment proposals from an all of government perspective

to develop an understanding of how Chief Executives are meeting their stewardship responsibilities and as an input into Chief Executive performance management.

1.7 How does it all fit together?By their very nature, 4YPs are snapshots of where an agency or sector is at on its strategy cycle. They should be an output of the strategic planning process that an agency has in place and reflect the key strategic decisions and trade-offs an agency has made or is proposing to make in order to deliver its strategic directive.

Figure 1 on the following page sets out the relationship between the major strategy and planning documents that feed into and come out of an agency’s strategic planning process.

The 4YP should be at the centre of the strategic planning process. It draws from a number of inputs such as Four-year Excellence Horizons, Result Action Plans, all-of-government (AoG) strategies, Sector Strategies and the BASS report. The 4YP is the place where the different elements of how an agency intends to deliver its strategic direction (such as what regulation it intends to introduce or change, what workforce, capital and ICT is required, where and how the agency will deliver its services) come together and the key decisions, trade-offs and actions are reflected.

Depending on where an agency is at on its strategy cycle, it will either have its strategic intentions already published and still relevant (given agencies are now only required to produce strategic intentions at least every three years unless there is a significant change within that period) or it will use the 4YP process to revise these.

It is expected that the draft 4YPs due in November will be based on (and simply summarise) the agency’s existing strategic intentions unless the agency is in the process of revising its strategic intentions. Post election, agencies can engage with their new Minister on the priorities of the Minister and the incoming government, and what these mean for the agency’s 4YP. Being an election year we anticipate that most agencies will need to revise their draft 4YP, including their strategic intentions, in light of these priorities and subsequent budget decisions.

The 4YP process has been designed so that agencies can structure the front part of their 4YP so that it can be used to meet the requirements in the Public Finance Act 1989 (for these requirements see http://www.treasury.govt.nz/publications/guidance/strategy). Agencies that structure their 4YP in this way will be able to subsequently use the front part to fulfil their requirements to publish and present their strategic intentions to Parliament.


http://www.treasury.govt.nz/publications/guidance/strategy



front section published as strategic intentions

existing strategic intentions summarised in FYP if strategic intentions

unchanged

Inputs: Government priorities, Result Action Plans, Sector Strategies, All-of-government strategies, Four-year Excellence Horizons, Annual Report, BASS report

Strategic Intentions:Strategic Direction, Strategic Delivery

Purpose: To communicate an agency’sstrategic objectives and how it intends

to achieve these for external accountabilitypurposes.

Four-year Plans:Strategic Direction, Strategic Delivery,

Financial Summary, Organisational Capability and Workforce Delivery,

Annexes

Purpose: To provide an integrated view of an agency’s strategic direction and how it intends to deliver this. It

supports agency and government decision-making regarding priorities and resource allocation.

Supporting strategies; for example:

Purpose: Internal organisational documents providing more detail on the achievement of an agency’s Four-year Plan. These should be referenced in and attached to the Four-year Plan as relevant.

Workforce Strategy

Financial strategy

Capital Plan ICT Strategy Property Strategy

Annual planning documents:Annual Business Plan / Output Plan / Workforce Plan /

Change Plan...Purpose: Internal organisational documents setting out

what an agency will deliver and what it will do to achieve its Four-year Plan over the coming year.

Estimates

Purpose: External accountability document setting out what will be delivered for each

appropriation and how performance will be assessed

Annual Report

Purpose: External accountability

document setting out how the agency

has performed against its strategic intentions and the

performance expectations set out

in “how performance will be

assessed”

Regulatory Plan

Figure 1: Four-year Plans are at the centre of the strategic planning process


It is expected that agencies will draw on their PIF Four-year Excellence Horizon when developing their 4YP. This is a strategic narrative written by the Lead Reviewers as a way for an agency’s senior team to understand and stay ahead of emerging opportunities and respond to unexpected issues. It is an aggregation of the dialogue between the Lead Reviewers and the people they engage with throughout a PIF review. If you have not received a Four-year Excellence Horizon (or will be doing one in an upcoming PIF review) your 4YP will be an important input into creating the Four-year Excellence Horizon.

Box 1: What is a Four-year Excellence Horizon?

A Four-year Excellence Horizon is a distillation of the few critical performance shifts that an agency needs to make to be successful for New Zealand in four years time. It does this by focusing on four areas: Environment, Business Strategy, Operating Model and Change Capability.

When done well a Four-year Excellence Horizon gives chief executives, senior leaders and Ministers clarity about the most important issues an agency is working on to lift performance, plus a sense of what the agency will look like when it is achieved.

The first Four‐year Excellence Horizon was published in March 2012. Every PIF review since then includes a Four-year Excellence Horizon, including follow-up reviews. Further information on the Four-year Excellence Horizon is available at http://www.ssc.govt.nz/pif-factsheet4.

A 4YP, that is informed from a Four-year Excellence Horizon should:

be consistent unless there are material changes since the timing of the FYEH

demonstrate how the 4YP contributes to achievement of the Business Strategy, Operating Model and Capability components of the FYEH

provide options for delivering the Four-year Excellence Horizon within baselines.


http://www.ssc.govt.nz/pif-factsheet4

http://www.ssc.govt.nz/pif-factsheet4


2. What’s New?2.1 Key changes this yearThe 2014 Election, the quality of last year’s 4YP, and feedback provided from agencies has led to some changes to the timeframe, content, structure and process of 4YP. The key changes to 4YPs this year are:

4YPs will primarily be departmental documents

greater alignment with the Performance Improvement Framework (PIF) process

the process has been designed so that the strategic intentions in the front part of an agency’s 4YP can be used to meet the requirements in the Public Finance Act 1989 for strategic intentions to be published and presented to Parliament

the process has been split into two stages with draft 4YPs due on 20 November and final 4YPs due post Budget decisions – by Budget day or as soon as practicable thereafter

inclusion of a highlights component in the 4YP to identify how the plan has changed from the previous year, how implementation of the existing plan is going and key points from the new plan

separate standalone Annexes on ICT, property or procurement are not required as they should be integrated within the 4YP. The key elements to be considered with respect to these areas are set out in section 2.4 and in Part C

the workforce costs information has been expanded to ask for more detail on the different drivers of costs

a refocus of the risk information section towards on the key assumptions underpinning 4YPs

greater clarity in regards to the information requested on Crown Entities, including a requested separate annex that provides a short (ideally 1 -2 pages) summary on each Crown entity that is funded by non-departmental appropriations

inclusion of regulatory planning expectations into the 4YP process (see Part C)

Budget initiatives are not being submitted with the draft 4YP. The timing of the Budget initiative process will be determined following engagement with the incoming government

inclusion of a checklist on key questions to consider in developing and reviewing 4YPs and the more detailed expectations regarding regulatory plans, property management and ICT.

More guidance on the required content of the Four-year Plan is outlined in the Part B of this Guidance.



2.2 Greater ownership by departmentsTo support 4YPs being the key strategic planning document for agencies, they will be primarily departmental documents with chief executives clearly responsible for how they will organise departmental activities to support the strategic intentions. The strategic intentions in the final 4YP need to be consistent with the policies and performance expectations of the Government, and endorsed by the responsible Minister.

2.3 Greater alignment with Performance Improvement Framework (PIF) and the strategic intentions processes

As mentioned in section 1.7, this year the process has been designed so that the PIF Four-year Excellence Horizon can be a key input into the process and so that the strategic intentions in the front part of their 4YP can be used to meet the requirements in the Public Finance Act 1989 for strategic intentions to be published and presented Parliament.

Following is how the PIF, 4YP and publishing strategic intentions processes fit together:

2.4 Stronger evidence of collective impact and actionThe Government has set a challenge to agencies to deliver the ten BPS Results targets, to work more collaboratively both across and outside of government, to take a citizen and population-based approach to the delivery of services, and to take an evidence-based and solution-focused approach to the set of interventions. Agencies must show how they intend to work together in order to deliver results, improve their effectiveness, and shift their resources accordingly.

Effective, early interventions can present much better outcomes for both the individual and in terms of the return on investment for the taxpayer. To achieve this agencies need to look at solving difficult problems by attacking and focusing on the root causes. Agencies need to show how they are better targeting their efforts and improving services for citizens and business. Agencies should be able to describe their customers and the characteristics of those customers that are relevant.

Each 4YP should contain sufficient information to understand an agency’s contribution to these government priorities, describing in their strategic narrative their commitment where they are the lead or a significant participating agency.

2 01 5 F OU R - YE AR P LA N GU ID E 10


In 2012, three functional leaders were established in the areas of property, procurement, and ICT. These functional leadership roles are recognised as critical levers for the kind of system level change the Government is expecting through BPS. Functional leadership is “aimed at securing economies or efficiencies across departments, improving services or service delivery, developing expertise and capability across the Public Service, and ensuring business continuity” [CAB Min (12) 16/10].

On a number of occasions Cabinet has reinforced the expectation that agencies will contribute to these priorities and factor these into their planning:

“Public Service department Blueprint alignment plans [to the Result 10 Blueprint] would be incorporated into their agency and sector Four-Year Plans.” [CAB Min (14) 23/3]

Result 9 departments will update their Four Year Plans to reflect the agreed Result 9 Roadmap of initiatives [CAB Min (14) 23/3]

“Functional leadership to provide certainty of agency alignment with all-of-government strategies” [CAB Min (12) 23/12]

Chief Executives of Public Service departments, the New Zealand Police, the New Zealand Defence Force, the Parliamentary Counsel Office and the New Zealand Security Intelligence Service are accountable for the alignment between their agencies’ ICT and business strategies and the Government ICT Strategy and Action Plan to 2017 [CAB Min (13) 20/12].

The expectations of the functional leads are outlined below. This year separate standalone Annexes on these areas are not requested, as they should be integrated within the 4YP. However, to avoid duplication you are welcome to refer to and annex other current planning documents to your 4YP (see section 3.4 of this guidance on other planning documentation).

Property Functional Leadership

Agencies are encouraged to consider the following:

How does the agency’s property plan support the delivery of the agency’s business and workforce intentions?

How is the agency achieving efficiency savings through moving to a footprint of 16sqm per FTE or less?

Further detail on what you may consider in meeting these expectations is included in Part C of this guidance.

Procurement Functional Leadership

Agencies are encouraged to consider the following:

To what extent does the agency rely on third party organisations (suppliers, providers and partners) to deliver public services?

What are the most critical third party relationships to the agency?

Are these relationships likely to change significantly in the next four years (for example due to policy implementation or service delivery changes) and if so, what are the implications of this?



ICT Functional Leadership

By 2017, the New Zealand government wants public services to be radically transformed for the benefit of all New Zealanders and ICT1 is a key tool that will make this possible.

ICT is not just about technology – it’s about the ways in which information and technology are used to deliver better services and enhance trust and confidence in government. This is the second year that ICT has been a specific consideration in agencies’ 4YPs and the Government Chief Information Officer (GCIO) wants to see how agencies are equipping themselves and owning the conversation about ICT-enabled transformation.

The following expectations are guided by the Government ICT Strategy and Action Plan to 2017, and key enabling initiatives which include the Result 10 Blueprint. Agencies are expected to, as relevant:

Partner with other agencies to make it easy for citizens and businesses to transact with government in a digital environment.

Ensure service delivery is actively designed by and for customer needs.

Securely manage strategic information assets across the entire lifecycle.

Proactively release information, making it open by default (unless there is a valid reason to withhold it), ensuring it is easily discoverable, accessible and re-usable.

Accelerate adoption of common (AoG) capabilities.

Align and integrate ICT planning with business strategies and government priorities, and leverage common frameworks and standards.

Partner with other agencies to plan, deliver, and leverage shared capabilities.

Establish and strengthen ICT Assurance (planning and monitoring).

Ensure privacy and security pervades business practice and is a core design feature in all business operations, processes and systems.

The GCIO acknowledges that the extent to which each of these expectations is relevant to your 4YP is dependent on your operating environment and strategic objectives. Further detail on what you may consider in meeting these expectations is included in Part C of this guidance. The GCIO will be engaging with you and welcomes further discussion through your 4YP central team, to agree the approach to and coverage of these expectations, as appropriate to your context.

1 ICT spans information management, technology infrastructure, and technology-enabled business processes and services.



2.5 Flexibility to account for this year being an election year

4YPs will be in two stages this year:

Stage 1: Draft 4YP due (20 November 2014). These will be a ‘state-of-play’ 4YP for incoming Minister which is prepared by and signed off by the Chief Executive, and will represent the position prior to engagement with the incoming Minister. This document could, if departments choose, accompany the departmental Briefing to the Incoming Minister. Having a draft plan this early in the process is designed to provide a basis for discussion around priorities, challenges and strategic choices with the incoming Minister and be the starting point for developing the final plan in consultation with the Minister. These draft plans will also be used by central agencies to get a collective sense of fiscal, workforce and other pressures to inform the 2015 Budget process.

Stage 2: Final 4YP due (post Budget decisions – by Budget day or as soon as practicable thereafter). The extent of changes an agency will need to make to its draft 4YP will depend on how much is required to incorporate the incoming Government and Minister’s priorities and the impact of any Budget decisions. Agencies should aim to have their 4YP finalised by Budget day 2015 or as soon as practicable thereafter, so that they are ready to respond to any requests from Parliament’s select committees to provide these 4YPs. Final 4YPs need to be lodged in CFISnet along with a covering letter signed by the Chief Executive and the Minister. A template for this will be provided early in the 2015 calendar year.

If an agency is using the front part of their 4YP as their strategic intentions then they will need the Minister to sign-off that the information on strategic intentions is consistent with the policies and performance expectations of the Government (as per section s39(7)(b) of the Public Finance Act 1989).

Once the Minister has signed-off on the strategic intentions in the 4YP this will trigger the publishing and presenting to Parliament requirements of the Public Finance Act which requires them to be published as soon as practicable (refer s.39 of the Public Finance Act 1989). Further information on this will be provided early in the 2015 calendar year.

If an agency is not using the front part of their 4YP as their formal strategic intentions, the Minister is still required to sign-off that the Final 4YP meets his/her expectations.

It should be noted however, that due to the election process, the swearing in of the incoming Government and Ministers, the timeframes may be subject to change. Exact dates for the Budget 2015 timetable will be confirmed when available.



Guidance released 4 August 2014

Engagement with the central team (central agencies, Result leads and functional leads) as 4YPs are developed

August – October

Draft 4YP to be lodged in Crown Financial and Information System (CFISnet)

20 November

Central team’s analysis of Draft 4YP 20 November – 10 December

Central team advice to the Ministers of Finance and State Services and feedback to agencies on draft 4YPs

by 15 December

New initiatives due TBD

Final 4YP to be lodged in Crown Financial and Information System (CFISnet)

Post Budget decisions – by Budget day or as soon as practicable thereafter

Strategic Intentions published on agency websites and presented to Parliament

Publish on Budget day or as soon as practical thereafter but before 30 June 2015Presented to Parliament as soon as practical after responsible Minister receives it but no later than date on which annual report is presented



3. Information to know before starting your Four-year plan

3.1 Financial basis The financial starting point for 4YPs are the baseline for Votes as at October Baselines Update. All financial information referenced in the 4YP must be anchored to this starting point.

The 4YP should be completed on the basis of no new funding, unless the agency is advised of an indicative allocation for planning purposes. New funding requests should not be relied upon to make the 4YP balance or to achieve the agency’s objectives. If an agency is facing particular circumstances where using this basis for planning would cause difficulties, they should discuss and agree an approach with their Vote Analyst.

Agencies should signal potential funding requests for Budgets 2015 to 2018 in Annex 6 of the 4YP. While these are not formal funding requests they will enable the Treasury to develop a picture of the overall pressures for Budget 2015 and out years.

3.2 Sensitive information 4YPs may include sensitive material. Given the separation of the 4YP and new initiatives this year it is not anticipated that the Treasury will release 4YPs as part of the Treasury’s annual post budget proactive release of Budget papers; therefore it is expected that agencies will determine how best to release their 4YP noting that these are typically requested by Parliament select committees as part of their Estimates consideration. For this reason agencies should aim to have their 4YP finalised by Budget day or as soon as practicable thereafter. Sensitive information however can be appropriately protected according to the provisions of the Official Information Act 1982.

3.3 Supplementary resourcesOther resources available to agencies that support this guidance include:

Strategic Intentions and Statement of Intent guidance available on the Treasury’s website: http://www.treasury.govt.nz/publications/guidance/strategy

PIF Four-year Excellence Horizon - a range of support is available to assist agencies, including the guidance in this document (see section 1.6) and a range of material on the PIF website: http://www.ssc.govt.nz/pif

Organisational Capability and Workforce Strategy resources available on the SSC website - agencies are advised to review this information, especially if they do not have a current workforce strategy at http://www.ssc.govt.nz/workforcestrategy


http://www.ssc.govt.nz/workforcestrategy

http://www.ssc.govt.nz/pif



The Expectations for Regulatory Stewardship available on the Treasury website at http://www.treasury.govt.nz/publications/guidance/regulatory/systemreport/04.htm#_toc1.1. Your agency’s Regulatory System Report (if you have prepared one) also provides information on your agency’s systems and processes for managing the regulatory regimes you are responsible for administering

Government ICT Strategy and Action Plan to 2017 at http://ict.govt.nz/strategy/

Government National Property Strategy at www.pmcoe.govt.nz

3.4 Other planning documentationTo avoid duplication you are welcome to refer to and annex other current planning documents to your 4YP. For example, you could attach:

your Statement of Intent (if this is still current and forms the basis of your planning)

your workforce strategy or similar document

your capital management plan

your regulatory plan

your information systems strategic plan, which ideally will include a capability roadmap that demonstrates adoption of common capabilities.

When attaching documents as above you should describe the relationship between the 4YP and any material or planning documents referred to, and/or annexed to it. For example; how the timing of the document matches the timeframe for the 4YP and areas of divergence. You should also summarise the key messages from the document in the 4YP.


http://www.pmcoe.govt.nz/

http://ict.govt.nz/strategy/

http://www.treasury.govt.nz/publications/guidance/regulatory/systemreport/04.htm#_toc1.1

http://www.treasury.govt.nz/publications/guidance/regulatory/systemreport/04.htm#_toc1.1


4. Process and Engagement This section outlines the expected process and engagement for developing a 4YP.


Set up meeting with central team leads to

discuss and agree scope, process, timeline

and engagement for the Four-year Plan

Guidance document released

Agency develops

its draft 4YP

Agency strategic

planningAugust

September

October

November

December

January

Lodge Draft 4YP

(20 November)

Agencies engage

with central team Agencies engage

with Minister(s)

Central team

review of 4YP

System analysis

(by 15 December)

Update 4YP as

required

February

March

April

May

June

Lodge Final 4YP

(by or soon after Budget day)

Publish strategic

intentions

(post Budget, before June 2015)

Agencies engage

with Minister(s)

Budget discussion

and decisions

Minister(s) endorse

strategic intentions

Central team

feedback and

engagement

Budget Day (TBD)

Budget Initiatives

due (TBD)

Central team

review of 4YP

System analysis

Improvements for

next year


4.1 Agreeing agency-specific approaches to Four-year Plans

Similar to last year, the 4YP process provides flexibility for agencies to present their high level narrative in a way that appropriately reflects their specific operating context.

The degree of flexibility and the specifics of your agency’s 4YP should be formally agreed between you and the central team (consisting of central agencies, Result leads and functional leads) shortly after this guidance is released. This will enable you, in agreement with central team leads, to tailor the 4YP to your agency’s unique operating environment. If you are preparing a sector strategy it would be helpful to discuss your intended approach with your central team contact.

Other than the specific information outlined in the Annexes and the financial summary, agencies are free to agree with your central team how you will approach the presentation of your 4YP and the agency relevant content to include. You may also wish to discuss how your existing planning documents could be used as supporting information for your 4YP.

4.2 Engagement and support from central team on the Four-year Plans

You are encouraged to engage early with central team leads to discuss how you will work together. 4YPs should be the product of an agency’s strategic and planning conversations. Engagement with the central team during this process will enable them to have insight into these conversations and to provide support and assistance in the preparation of your 4YPs. We encourage regular dialogue with the central team over the content and any issues arising in 4YPs.

We will provide feedback on both the draft and final 4YP (the questions we will use in developing this feedback are set out in Part C). This feedback will be based on both the document itself and the engagement that the central team has had with the agency. The feedback on the draft is intended to help agencies determine what more is needed to finalise the plan. Feedback on the final 4YP will provide a platform for improving the overall process and individual plans for the following year.

The central team will use the draft 4YPs to identify any system trends, pressures and challenges. This will feed into advice on a range of matters such as Budget 2015, taking forward functional leadership and progress on delivering the Government’s priorities. It will also be used to determine and provide advice on whether Ministers can have “investor confidence” in an agency. 4YPs will also function as one of the key “touchstones” in the new approach to Public Service chief executive performance management being rolled out from this year.



4.3 Engagement with Ministers during the development of Four-year Plans

With the election scheduled for 20 September, and the possibility of subsequent coalition negotiations leading to the formation of the government, the expectations regarding engagement with Ministers over the 4YP, in particular the draft 4YP, are different compared with previous years.

Agencies may not have much engagement with the Ministers prior to the submission of their draft 4YP. However, the draft will provide a framework for identifying costs, pressures and key deliverables of a department; and so will be a valuable input in engaging with Ministers in the post election period. Agencies should consider whether they wish to provide their draft 4YP as part of their Briefing to the Incoming Minister.

The second stage of the process allows time for agencies to engage with their incoming Minister(s) on the Minister’s and incoming government’s priorities and then incorporate this into their 4YP. It also enables an agency to incorporate any Budget decisions that impact on their 4YP into the document. The extent of change between the draft and the final will be determined by this engagement.

One other significant change for this year’s Plans is that these will be agency documents although the strategic intentions component will need to be endorsed by the Minister.

4.4 Relationship between the Budget process and 4YPsThis year Budget initiatives are not being formally submitted with the lodging of the draft 4YP. However, 4YPs are still the backbone of the Budget process and provide important information on the pressures being faced, choices and trade-offs Ministers will need to make, and whether Ministers can have “investor confidence” in an agency. Ministers are looking for assurance that agencies are focusing on results, managing current expenditure and future pressures, identifying efficiency savings and ways to better deliver their services more effectively, and contributing to bettering the system through cross-government initiatives (eg, uptake of ICT common capabilities). Ministers are also looking for evidence, where relevant, that the agency understands their customers and can describe the characteristics of those customers that are relevant.

While the Budget process has yet to be finalised agencies can expect that new initiatives are likely to be due in January or February; and the information required on new initiatives will be similar to previous years. This is all subject to confirmation once the Treasury has finalised the Budget process with the incoming government.


Four-year Plan Part B: Components of the Plan

August 2014

PAR T B : C OM PO NE N T S OF T H E PL AN

Four-year Plan Components Key Components of a Four-year PlanGood 4YPs are the product of good planning and strategic conversations held within and between agencies. They provide insights into these conversations; in particular where these conversations have landed.

While it is up to an agency how they structure the body of their 4YP, the key components that are expected are:

Highlights: What are the key points in the 4YP?

Strategic direction: What is to be achieved over the medium-term.

Strategic delivery and strategic choices: What an agency will do to achieve its strategic direction; what are the key strategic choices facing an agency.

Risks to sustainability and delivery: The pressures the agency is facing and how it intends to manage these.

Organisational Capability and Workforce Delivery

Financial summary

Annex 1: Workforce Capability, Capacity and Costs

Annex 2: Supporting Financial Information

Annex 3: Asset management and investment decisions

Annex 4: Key Assumptions, Resilience

Annex 5: Crown Entities: We are interested in any risks to the ability of Crown Entities to operate within current funding levels, anticipated changes to the strategic intentions, and any anticipated requests for additional funding or increases in charges.

Annex 6: Anticipated funding requests

Agencies should only provide a level of information that is sufficient to support the overall 4YP performance story. The 4YP should focus on areas of significant change and large cost impact. The focus should be on areas where Ministerial decisions will be sought, or there are material risks to operational delivery that could impact on outcomes. The 4YP should provide sufficient information for Ministers and the central team to assess its robustness. It should also provide sufficient information to enable the agency itself and the central team to monitor an agency’s performance and progress against its 4YP.

Where a component is unchanged from an agency’s current strategic intentions, then a simple statement which affirms the currency of this, along with a high-level summary, will be sufficient. Where an agency is revising its strategic intentions, agencies should consider structuring their 4YP so that the relevant components can be easily used to meet the requirements in the Public Finance Act 1989 for strategic intentions (for these requirements see: http://www.treasury.govt.nz/publications/guidance/strategy).




If you have an existing planning document(s) that includes all the information requested in an annex, you can submit that document in place of the annex. Note that any information/data provided must use the same underpinning definitions as stated in this guide, to ensure that information is consistent across agencies. If you are unsure whether existing documents meet this standard you should consult with the relevant central team contact person.

We recognise that you may still be working through the design and costs for some intended changes. Where this is the case, please include your best estimate of the costs/savings, workforce implications and performance impacts, and outline your key assumptions.

More information on each of these components is outlined below.

Highlights

The 4YP should include a short overview (either in the document or in a cover letter) that sets out:

How implementation of the last 4YP is progressing.

Key changes from last year’s 4YP.

The key strategic challenges and choices in the 4YP.

Strategic direction

The 4YP should describe your agency’s strategic direction; including how it contributes towards the Government’s priorities, sector strategies and/or cross-agency initiatives. This will include your environmental scan (and be drawn from sources such as the PIF Four-year Excellence Horizon); the strategic objectives that your agency intends to achieve or contribute to; and the nature and scope of your agency’s functions and intended operations.

Strategic delivery and strategic choices

The 4YP should set out what an agency will do to achieve its strategic direction. This should focus on:

Describing the customers or businesses that agency is targeting with its strategy.

What interventions (outputs, services and regulation) the agency will deliver; include commentary on any outputs and services where the operational delivery remains unchanged (business as usual) but there is a changing demand for the service.

Any changes proposed to what the agency will deliver, including commentary on:

any new activity that will be funded from within current baselines (further detail on the financial impact of this new activity is requested in the supporting financial information annex)

any activities that your agency will stop or reduce (reprioritisation)

any other significant change that has no baseline financial impact, including any activity undertaken in partnership with another agency that is managing the costs through their Votes, or significant changes to regulations.



How it will deliver these (your operating model) and any changes to your operating model – this should reference how you will be contributing towards the government’s ICT, property, and procurement where appropriate.

Significant actions and trade-offs that will enable the 4YP to balance, including any reprioritisation and operational efficiencies that your agency is making. This should set out the lowest value activities that you will need to stop or reduce in order to present a balance 4YP. If your agency wishes to maintain these activities they should be signalled as new funding requests and considered for inclusion in the Budget Initiatives to be submitted for Budget 2015. Further detail on the financial impact of these changes that will enable the 4YP to balance is requested in the supporting financial information (Annex 2).

Risks to sustainability and delivery

We are interested in an overview of the pressures facing the agency/sector and how the agency intends to manage these. This section should highlight the key assumptions underpinning the 4YP. In Annex 4 we ask for specific detail on the assumptions and risks you have outlined here.

Organisational capability and workforce

The 4YP should show that you have a coherent workforce strategy that is integrated with - and will support delivery – on your wider business and financial strategy. It is important to refer to your organisation’s business planning documents and Four-year Excellence Horizon when completing this section.

You may prefer not to have a separate workforce section in your 4YP and decide instead to weave your organisational capability and workforce strategy into your overall strategic narrative. Alternatively, you may want to include a short overview of your workforce strategy as a separate section if this works better for the flow of the document, or if your want to show a focus on particular aspects of your workforce strategy.

However you choose to cover the workforce component of your 4YP, the overall 4YP should include a description of how your workforce strategy supports your strategic direction and medium-term intentions. This should cover at a high level your agency’s strategy and intentions around:

change leadership

organisational culture and engagement

diversity

workforce capacity

capability, and

costs.

You are encouraged to append your full workforce strategy to your 4YP, as supporting information, where this is available.



Guidance is available on the SSC website, including the SSC Workforce Strategy Framework, which is designed to assist you to work through the key elements of organisational capability and workforce that need to be addressed. We recommend that you take the opportunity to use the website information.

Please provide all the supporting information requested in Annex 1. You do need to repeat information included in the main narrative, although you could refer to the information to highlight particular issues if you wish.

Financial summary

This section of the 4YP provides assurance that you can deliver on your strategic intentions within the financial basis of Plans as described in section 3.1. The following tables provide a high level summary and will be populated from the detailed financial information requested in Annex 2. The 4YP must balance. If your agency needs to stop or reduce its lowest value activity in order to present a balanced plan and your agency wishes to maintain these activities, you should request funding to do this through the 2015 Budget process and indicate your intentions to do so in Annex 6.

It may also be appropriate to include in this section a narrative that supports the information in the tables or to provide an overview of any anticipated changes to third party charges or the impact on any memorandum accounts that you presently operate.

Operating – Departmental2

2014/15$0.000m

2015/16$0.000m

2016/17$0.000m

2017/18$0.000m

2018/19$0.000m

Current operating expenditure baseline

Add any indicative allocation advised of

Equals Total funding level for planning

Financial movements

Add cost of new activity to be funded from current baselines

Add total cost pressures

Subtract significant actions that will enable the 4YP to balance

Add or Subtract vote transfers

Subtract any indicative allocation advised of (as above)

Equals Total funding level for planning

2 To assist with the completion of the financial tables requested throughout the Four-year Plan a spreadsheet model has been provided alongside this guidance on CFISnet. Further information on the use of the spreadsheet model is included on the spreadsheet.



Operating – Non-Departmental

2014/15$0.000m

2015/16$0.000m

2016/17$0.000m

2017/18$0.000m

2018/19$0.000m

Current operating expenditure baseline

Add any indicative allocation advised of

Equals total funding level for planning

Financial Movements

Add cost of new activity to be funded from current baselines

Add total cost pressures

Subtract significant actions that will enable the 4YP to balance

Add or Subtract vote transfers

Subtract any indicative allocation advised of (as above)

Equals Total Funding level for Planning

Capital – Departmental

Increase (Decrease)

2014/15$0.000m

2015/16$0.000m

2016/17$0.000m

2017/18$0.000m

2018/19$0.000m

Operating balance funding available

Add depreciation funding received

Add receipts from sale of assets

Add other (please specify)

Equals total baseline funding available

Subtract capital investments funded from baselines

Equals closing baseline funding available



Capital – Non-Departmental

Increase (Decrease)

2014/15$0.000m

2015/16$0.000m

2016/17$0.000m

2017/18$0.000m

2018/19$0.000m

Baseline funding available for the purchase or development of Crown capital assets

Add capital investments in organisations other than departments

Equals total

The financial summary will be used in system-wide analysis and is linked to the supporting financial information in Annex 2 so we request this section is provided in the format described. There are also some strong alignments between the structure of the information sought in the Strategic delivery section and the supporting financial detail (Annex 2).

This section should include a brief paragraph explaining the sustainability of the plan beyond four years; including any risks to long-term sustainability.



ANNEXESWhile how the agency structures the body of its 4YP is up to the agency, the Annexes need to be completed as outlined below. This is because this information is used to develop a cross-agency perspective which requires the information to be provided in a consistent way.

Annex 1: Workforce Capability, Capacity and Costs InformationPurpose: The information below is requested to support the workforce narrative in your 4YP and to enable analysis of system-level workforce issues and pressures (trends across agencies). It is important that the information is complete. Please ask your SSC workforce contact for any assistance you need to complete this section.

1.1 People Capability

1.1.1 Priority workforce groups

List three areas of your workforce groups/segments that are priorities for your agency. These are the groups/segments that are critical to the achievement of your agency’s results over the next four years.

Provide a narrative around these workforces using the questions below as a guide. Note that these workforces may not necessarily be areas where your agency has pressures or trouble retaining/recruiting, but are vital workforces to achieving goals.

1. Describe why this group is critical to your agency achieving its goals.

2. What are the retention and recruitment levels for this group?

3. What are you doing to address any difficulties maintaining this workforce?

1.1.2 Capability Building

People capability refers to the mix of people knowledge, skills, attributes and behaviours the organisation requires to deliver its business results.

List the top four areas of people capability your agency is seeking to build over the next four years and note what your agency is doing to achieve this shift. Note that building capability could involve developing capabilities of existing employees and/or via sourcing new people. There may be crossover with the priority workforce groups section above.

Examples in previous 4YPs of capabilities include: leadership, collaborative skills, strategic thinking, customer-related skills, agility/flexibility, people management.



1.1.3 Recruitment

Which occupational roles/positions does your agency currently have difficulty recruiting - or expects to have difficulty in recruiting over the next 12 months? Please be as specific as possible (eg use job or position titles) to enable identification of key workforce supply gaps and pressures across agencies. Add as many rows as you need.

Difficult to fill roles/positions Reason for capability gap/pressureeg, ICT system architects Increasing demand across public and private

sectors

eg, Senior policy analyst We are introducing a new policy function and will need more policy skills

Add more rows here if needed.

1.2 Workforce Capacity Please include a brief commentary on why your position numbers, as shown in the table below, will change (or not) over the four year period of the 4YP, including the impact of any budget bids that you are intending to make in Budget 2015:

Please complete the table below.

Forecast Position Numbers1

30 June 20142

(Base-line)

30 June 20153

30 June 2016

30 June 2017

30 June 2018

30 June 2019

Position numbers – departmental

Position numbers – non-departmental4

Total Position Numbers



Definitions 1. Please use positions as per the definition used in the SSC Human Resource Capability

Survey (HRC) – see below.

2. Please enter departmental position numbers as submitted for the June 2014 Human Resource Capability Survey.

3. For 2015 and each of the out-years please provide expected position numbers that are your best estimate based on, and aligned to, your proposed 4YP’s organisational strategy and direction. Please indicate where definitions do not match the HRC definition and the source and timing of the data.

4. For total non-departmental position numbers as at 30 June 2014 please provide figures so that they match the HRC definition as closely as possible. Please indicate where definitions do not match the HRC definition and the source and timing of the data. Please note any gaps in the figures provided.

SSC Human Resources Capability (HRC) Survey Definitions (abbreviated)

The number of positions in the organisation on a Full Time Equivalent ( FTE) basis

Positions are calculated by adding together the number of FTEs and the number of FTE vacancies.

The number of FTE employees at the survey date

An employee as an individual who has an employment agreement with the chief executive, and to whom the usual conditions relating to being employees apply (eg, the organisation can specify hours of work, place of work, supervision arrangements).

Vacancies: The number of vacancies on an FTE basis

Vacancies are defined as those roles in an agency that are unfilled.

1.3 Workforce Costs The purpose of this section is to provide your best forecast of total direct employment costs over a four year period. It will also be used to help understand the key components and drivers of an agency’s workforce costs.

It is recognised that some components of the table below may not apply to every agency and that it may be difficult for some agencies to distinguish between the different drivers of cost changes. Please combine sections where this is more appropriate for your employment arrangements. Central Agencies intend to host a workshop to assist agencies with this section. In the meantime questions can be directed to the SSC Workforce Strategy and Employment Relations Team.

The figures provided will be based on assumptions at the time of preparing the 4YP, please outline the assumptions you have used and identify what factors could impact on the accuracy of these assumptions.



Please briefly describe your expected workforce cost picture and assumptions for the next four years, with a focus on the key factors driving changes in workforce costs:

1.3.1 Direct employment costs – departmental

Definitions:

1. Total direct employment costs – arise from any payments made to employees and this should be the most accurate figures you have of costs over the four years. This includes costs arising from collective employment agreements (including current and forecast settlements) and/or remuneration policies/frameworks. It includes the cost of increments (competency/service/performance based) – as well as material changes to other costs such as allowances or professional fees. Superannuation adjustments and ACC levies should also be included. Please ensure this section of the table is complete, and fill in the components with best estimates.

Components of changes to total direct employment costs

2. Change in costs associated with position number changes – the costs associated with the change in the number of employees (align with section 1.2 on Capacity). Complete this section first and calculate the remaining components accordingly.

3. Change in costs associated with bargaining/remuneration outcomes – known increases arising from current individually or collectively negotiated pay settlements and anticipated costs of future individually or collectively negotiated pay settlements/remuneration forum outcomes or similar. If these include any one-off expenditures (eg, performance payments or one-off payments in bargaining), please include details in the narrative above.

4. Change in costs associated with progression – costs attributable to employees’ progression through pay scales or application of the remuneration policy/framework. (Note: agencies with no collective bargaining may not be able to distinguish this component from remuneration outcomes and therefore this component could be combined with the one above). Where you can, take into account the effect of attrition (new employees starting at higher or lower pay rates than those leaving).

5. Other factors contributing to changes in direct employment costs – this is a balancing item of other factors that affect direct employment costs. These could be changes in workforce ‘mix’ (eg, more, higher skilled roles and fewer low skilled roles); or changes in other employment costs such as ACC levies and employer contributions to superannuation. Provide a brief narrative in the text box above to explain the key changes.



Table 1

Please complete the shaded areas in the table. Completing the remaining components for the years 2016/17 – 2018/19 is not essential, but please do so if you can.

2014/15 2015/16 2016/17 2017/18 2018/19

1. Total direct employment costs – Departmental ($ and % change)

$ $ $ $ $

% % % %

Components

2. Position numbers- departmental

(Copied from section 1.2 on p.29)

Change (%)

[blank]

% % % %

3. Change due to bargaining/ remuneration outcomes

($ and %)

$ $ $ $

% % % %

4. Change in costs associated with progression ($ and %)

$ $ $ $

% % % %

5. Other factors contributing to changes in employment costs (%)

% % % %



1.3.1 Direct employment costs – non-departmental

Table 2

For agencies/sectors with significant non-departmental workforce costs (eg, education and health) it would be useful to provide the table 1 information for the non-departmental workforce.

Where it is easier and appropriate to provide this information by staff group or collective agreement instead of aggregated figures, please do so.

2014/15 2015/16 2016/17 2017/18 2018/19

1. Total direct employment costs – Non-departmental ($ and %)

$ $ $ $ $

% % % %



Annex 2: Supporting financial informationThis information is in line with what was requested in last year’s 4YP but there are some structural adjustments to help improve the flow and fit of the information.

This section will help inform the financial summary in the front part of the 4YP which gives assurance that the delivery of an agency’s strategic intention is achievable within baselines. The information will also allow for an agency-wide view of financial pressures and movements that will support Budget related decision-making and other analysis.

This section should only include the information which would materially affect the financial balance of the 4YP if it were not included. If there are a number of small values that on their own are immaterial, but when added together constitute a material amount, then we recommend including them as an ‘other’ line. Materiality is ultimately a judgement call for agencies to make but central agencies are happy to discuss this further with agencies.

The financial story is split into the following sections:

Information on increased costs that agencies will have to manage within their baseline (new activity and cost pressures)

Information on what agencies are doing within their baselines in order to fund the increased costs (changes to generate savings; such as reprioritisation, increased operational efficiency)

Vote transfers, either in or out, that affect the agency’s funding.

2.1 New activity that will be funded within current baselines

Please complete these tables, summarising the new activity to be funded from current baselines that was described in the strategic delivery component of the agency’s 4YP. Please also consider the potential cost of adopting common capabilities in this annex. New activities can also include changes to existing activities that are within the control of the agency, such as offering a service to a wider group of people than previously or increasing the quality of the service provided.

Some new activity may require a mixture of capital and operating funding. In these instances please include each aspect of the new activity funding requirement in the appropriate table.

Please be mindful of the requirement that 4YPs should be sustainable. Therefore, analysis should be performed to ensure new activities funded within current baselines will not adversely impact your ability to deliver on other outcomes or your long-term sustainability.

Activities funded by indicative allowances should be include here. These will need to be supported by new initiatives bids in due course.

Increased demand for an existing service is not considered new activity for the purpose of the 4YP. This will be included as a cost pressure further on in this Annex.



Departmental – Operating

Intention Name and Brief Description

2014/15$0.000m

2015/16$0.000m

2016/17$0.000m

2017/18$0.000m

2018/19$0.000m

Total Non-Departmental – Operating


2014/15$0.000m

2015/16$0.000m

2016/17$0.000m

2017/18$0.000m

2018/19$0.000m

Total

Departmental – Capital


2014/15$0.000m

2015/16$0.000m

2016/17$0.000m

2017/18$0.000m

2018/19$0.000m

Total

Non-Departmental – Capital


2014/15$0.000m

2015/16$0.000m

2016/17$0.000m

2017/18$0.000m

2018/19$0.000m

Total



2.2 Cost PressuresPlease identify operational cost pressures on your business as usual activity. This is the activity, as described in the strategic delivery component of the 4YP, that is not planned for major change.

Please note that for the purpose of the 4YP cost pressures are the additional costs incurred in providing the same activity, not the total cost of the activity.

Please ensure that where cost pressures accumulate year on year (eg wage adjustments) this is reflected as such.

Identifying and managing cost pressures is a key factor for sustainability. Cost pressures can be either increased costs due to increasing demand for a service or an increase of the costs to provide the same level of service. Analysing your cost drivers and articulating pressures in these terms should be an integral part of your 4YP process.

Cost pressures are not the costs incurred to provide new activities or the costs incurred from operational changes that will generate future savings. If there is a net cost in the early years of operational change to generate future savings this should be included as a negative number in the ‘significant change that will generate savings’ section, further on in this Annex.

We have split cost pressures into four main areas: Cost pressures from increased service demand; Direct employment costs pressures; Operational cost pressures arising from Capital, and Other cost pressures.

Please complete the tables for each section. This will allow for a consistent system-wide view to be formed. The tables immediately below are a summary of the totals of the cost pressures identified in each of the following sections. It will show the total cost pressures that will then inform the financial summaries in the body of the 4YP.

Please complete one table for Departmental Cost Pressures and one table for Non-Departmental Cost Pressures.

Summary Table of Total Operational Cost Pressures

2014/15$0.000m

2015/16$0.000m

2016/17$0.000m

2017/18$0.000m

2018/19$0.000m

From Increased Service Demand

From Direct Employment Costs

From Capital Planning

From Other

Total



2.2.1 Cost pressures arising from increased service demand

These are cost pressures that arise due to an increased demand for a service that you fund from within baselines and plan to continue providing. Please describe the service for the purposes of this section, not the specific costs incurred. The costs should only include the non-workforce related costs arising from the increased service demand. The workforce costs associated with this should be recorded in 2.2.2.

If you do not plan to meet the additional service demand for this service without increased funding then do not include this here. In those cases, include it as a new initiative request.

This should only include costs that are driven by factors beyond an agency’s control rather than changes to the service offering. Changes to the service offering (such as offering the service to a wider range of people) should be included either as a new activity or new initiative request.

As an example: you provide a service to 1,000 people, the total cost of which is $10.000m annually, you expect the demand for that service to increase to 1,500 people over the four year horizon and you plan to continue providing the service. The costs will increase to $12.000m annually as you need to employ additional workers and will also incur additional accommodation costs for them. In this case please describe the cost pressure as “increased demand for service xxx from 1,000 to 1,500 people” and show the accumulating cost pressures of the accommodation costs only. The cost pressure associated with employing additional workers should be included in the direct employment cost pressures.


Only include non-workforce related costs in this table. All workforce related costs should be in table 2.2.2.

Cost Pressures arising from increased demand on service delivery and short description

2014/15$0.000m

2015/16$0.000m

2016/17$0.000m

2017/18$0.000m

2018/19$0.000m

eg increased demand on service XX from 1,000 to 1,500 over four-year horizon

$0.000 $0.500 $1.000 $1.500 $2.000

Total



2.2.2 Cost pressures arising from direct employment costs

These are cost pressures that arise from any payments made to employees. Calculate your cost pressures on the following basis:

estimated FTE position numbers, including any increases required to respond to increased service demand. Do not include any FTE changes resulting from new activities or actions to enable a balanced 4YP

committed remuneration increases (bargaining and/or remuneration forum outcomes) and the cost of current progression/performance-based increases.

your best estimate of future bargaining and/or remuneration forum outcomes based on your current remuneration framework.

This excludes any increased workforce costs dependent on additional funding and/or any changes you intend to make to your remuneration framework or FTE position numbers in order to enable a balanced 4YP. These savings should be included in the significant actions that will enable the 4YP to balance (table 2.3) and any additional costs subject to new funding should be included in the new funding requests section (annex 6).


Cost Pressures arising from Direct Employment Costs

2014/15$0.000m

2015/16$0.000m

2016/17$0.000m

2017/18$0.000m

2018/19$0.000m

Departmental cost pressures

Anticipated % change

Non- Departmental cost pressures

Anticipated % change

Total



2.2.3 Operational cost pressures arising from capital planning

These are cost pressures that may arise from planned changes to an agency’s asset portfolio. They will relate to Depreciation and Capital Charge costs. If the changes result in a reduction of these costs do not include them here, include them in section 2.3 below as a reprioritisation. Cost pressures in this section do not include costs associated with the assets, eg, maintenance, insurance, rates, etc. These will be included in the following ‘Other’ cost pressures section.


Cost Pressures arising from Capital Planning

2014/15$0.000m

2015/16$0.000m

2016/17$0.000m

2017/18$0.000m

2018/19$0.000m

Total

2.2.4 Other cost pressures

In this section identify all other material cost pressures on your business as usual activity. This may include cost pressures relating to Asset Maintenance, Insurance, Rent, Rates, Power, Petrol, etc.


Cost Pressures arising from Other

2014/15$0.000m

2015/16$0.000m

2016/17$0.000m

2017/18$0.000m

2018/19$0.000m

Total



2.3 Actions that enable a balanced 4YPPlease complete this table summarising the changes that will enable the 4YP to balance and be financially sustainable as described in the strategic delivery section of the 4YP. These actions will likely be used to fund new activities that will be funded from within baselines (2.1) and cost pressures (2.2). This is likely to include any changes to the workforce, efficiency savings and reprioritisation (activity that will be stopped or scaled) the agency plans to achieve in order to be financially sustainable over the medium-term. This can also include any proposed changes to third party charges.

We would be grateful if agencies/sectors could provide any supplementary information on the intent. For example, a copy of any efficiency programme the agency has in place.

Departmental

Intention Name and Description

Further information (timing, decisions required etc)

2014/15$0.000m

2015/16$0.000m

2016/17$0.000m

2017/18$0.000m

2018/19$0.000m

Total

Non-Departmental


Further information (timing, decisions required etc)

2014/15$0.000m

2015/16$0.000m

2016/17$0.000m

2017/18$0.000m

2018/19$0.000m

Total

2 01 5 F OU R - YE AR P LA N GU I DE 40


2.4 Vote transfersTo present a balanced 4YP please include any Vote transfers ‘In or Out’. If they are a Vote Transfer ‘In’ make them a positive number. If they are a transfer ‘Out’ make them a negative number. Please ensure that the agency on the other side of the transfer also includes the transfer in their 4YP.

This should also include any transfers between departmental and non-departmental appropriations and any operating-capital swaps.

‘From’ or ‘to’ and name of agency / appropriation on other side of transfer

2014/15$0.000m

2015/16$0.000m

2016/17$0.000m

2017/18$0.000m

2018/19$0.000m

Total



Annex 3: Asset management and investment intentionsPurposeTreasury and SSC intend to provide advice to the Minister of Finance and Budget

Ministers on:

overarching strategy to manage assets and investment intentions, with a focus on individual sector capital strategies

Budget 2015 capital priorities and individual investment3 decisions

allocations from the Future Investment Fund for future Budgets

uptake of common capabilities

when completing this section of the 4YP agencies should also consider any implications from the areas of focus in the Treasury Investment Statement4, the State Sector Act changes, and Government priorities and directions to functional leaders. At the same time it is important to continue to consider the need to:

more actively reprioritising Crown capital to its highest value use

sharpening incentives on State agencies to use existing Crown capital well

continuing to look at introducing private sector capital and disciplines, where appropriate, to help drive up the performance of State assets.

Agencies should be able to draw on existing information and resources to provide the information requested below. For example, up-to-date asset registers and condition assessments, asset management plans, and analysis of capital sustainability (used to assess an agency’s ability, or inability, to absorb new capital costs.

For each section below, we are looking for around 2 – 5 relevant bullet points.

The following information is sought from agencies:

Current state

We would be grateful if agencies/sector could:

describe the existing state of the sector/agency’s asset base

provide an overview of the key sectoral issues relating to capital management

3 This includes all new lines of business, assets, service changes, and asset refreshments, irrespective of funding sources (baseline, private investment, new Crown funding etc) and funding type (capex or opex)

4 For a copy of the 2014 Investment Statement see http://www.treasury.govt.nz/government/investmentstatements/2014/02.htm



describe the current performance of the sector in managing capital and areas for improvement

provide evidence as to how the agency/sector ensures that capital resources (eg, from accumulated depreciation) are allocated to highest priorities within a sector, rather than to individual agencies.

Trends

Please describe:

the key drivers of capital utilisation in the sector/agency over the next 10 years

any other relevant trends that may impact on the use of capital in the sector/agency.

Potential for private sector investment

Please outline:

any examples of the sector using private sector investment or private sector capital disciplines

any opportunities for (further) private sector investment in the sector/agency, i.e. Private, Public, Partnerships (PPPs).

Existing balance sheet

Please describe:

the state of the sector’s balance sheet, including amount of accumulated depreciation

how well the sector uses its existing balance sheet, including whether it is actively prioritising capital to its highest value use

any opportunities to fund future capital pressures from the existing balance sheet.

Major capital decisions/challenges

The Project Portfolio reporting exercise and the 4YP process outlines the sector’s individual capital intentions. We are interested in agencies’ view on the 2-3 major capital decisions or challenges over the next 10 years.

Strategy for managing capital

Taking into account the previous sections, please outline your strategy or “game-plan” for managing the sector’s/agency’s capital needs over the next 10 years.

Other relevant information

Please provide links to any other information relevant to your sector’s/agency’s capital asset management strategy.



Annex 4: Key Assumptions and Resilience4.1 Risk to the assumptions underpinning 4YPsThe financial and other information presented in 4YPs are inevitably based on a number of assumptions (eg assumptions on wage growth, staff turnover, Government priorities, capital costs etc). In order to help form a view on the sustainability and risks to delivery of 4YPs we would like to know more about the key assumptions that plans are based on, and what would be the implications (quantifiable and non quantifiable) should events result in material differences from the assumptions outlined.

Please complete the following table that outlines the key assumptions that underpin your plan and the consequences, likelihood of possible changes to these assumptions. This table should outline any risks to the sustainability of the 4YP beyond 2018/19.

Some illustrative examples of the information we are seeking are outlined below. The areas of key assumptions will differ by agency, for instance some agencies may have a significant capital project underway, others may have workforce pressures, others will have specific parameters that only relate to that agency.

Key assumptions in 4YPs

Risk Consequence Likelihood Mitigation

Example 1Personnel wages grow at xx% pa

Collective employment agreements settle at a higher amount

Every 1% above the x% allowed for in 4YP cost $xxx

Example 2Secure information systems

Information is leaked or distributed inappropriately

Loss of reputation Upgrade of information security underway/planned

Example 3Efficiency savings are continuously achieved every year

Options for efficiency savings become harder over time

4YP becomes unsustainable beyond 2018/19 without a drop in service delivery



We are also interested in any help that the central team can give to help improve the sustainability of 4YPs. If there are any areas where the central team can assist agencies/sectors to help minimise adverse changes to the assumptions listed above, and improve the sustainability of 4YPs please signal these.

In determining likelihood, we be grateful if the following definitions are used:

Almost certain: more than 80% chance of occurrence over the 4 year period

Likely: 50-80% chance of occurrence over the 4 year period

Possible: 30-50% chance of occurrence over the 4 year period

Unlikely: 5 to 30% chance of occurrence over the 4 year period

Rare: less than 5% chance of occurrence over the 4 year period

Long-term: chance of occurrence beyond the 4 year period



4.2 ResilienceTaking the above into account, provide an assessment of the resilience of different aspects of resilience across your agency/sector.

Agency/sector StaffInformation systems

Stakeholder relations/reputation

Physical capability (eg, buildings) Finances

Overall score for agency

If the sector contains several Crown Entities or departments, please provide a resilience rating for each agency (we don’t however expect a rating for individual schools).

By resilience, we mean the capability of your agency to withstand and recover from shocks that could impact on your ability to deliver the Plan. For example how resilient are your staff, your information systems, your stakeholder relations or reputation, your physical capability, and your finances.

We are seeking both an overall score for your agency, and several paragraphs providing your reasoning for this assessment. The following five point scale should be used:

5. Strongly resilient to most possible eventualities, well within risk appetites.

4. Resilient to most eventualities, mainly within risk appetites.

3. Resilient to some eventualities, but need strengthening in some areas to be within risk appetites.

2. Only weakly resilient to most eventualities, exposed to significant risk in excess of appetites.

1. No resilience to many eventualities.



Annex 5: Crown EntitiesIn the past we have found that for some 4YPs the information presented on Crown Entities has been poor. In others good high level information has been provided. We appreciate that Crown Entities are semi-autonomous and that there are numerous Crown Entities in some sectors.

We don’t expect a write-up on each Crown Entity in many sectors (eg schools, tertiary institutions, DHBs etc). What can practically be provided in a meaningful way needs to be discussed between the administering department and Treasury / SSC sector teams.

For Crown Entities that receives Crown funding we would expect a short description of:

3. The strategic intentions of the Crown Entity. If there is an existing document that clearly outlines these intentions, such as an SOI and they are unchanged, then a link to this document is only required. What are most interested in here is whether there are any material changes expected or planned to the strategic intentions.

4. An overview of any risks (either agency specific or strategic risks that impact across government). An assessment of the probability of risk and mitigation strategies for these risks. We are most interested in whether there are any significant risks that impact on the sustainability of the 4YP in regards to the Crown Entities in each sector.

5. How agencies are working with the Crown Entities they fund / monitor to effect the achievement of functional lead expectations.

6. An overview of the financial impact. If the Crown Entity is intending to seek additional funding from the Government, or there will be a planned increases in charges, fees or levies, over the four-year period then supporting evidence justifying these intentions must be provided along with evidence that current activities are aligned to Government priorities.



Annex 6: Anticipated funding requestsThis information does not constitute a Budget bid. They will need to be made in the appropriate Budget process. This information may be used to inform advice on the overall pressures and indicative allowances decisions. It will also facilitate the conversation with your Minister on the key decisions and trade-offs the agency is facing.

There may be activities an agency cannot fund within baselines that would support their strategic direction and add increased value in support of the Government’s priorities. In these instances agencies may signal expected funding requests for Budgets 2015 to 2018 through this template. The 4YP must not rely on these requests to balance financially or achieve its objectives.

Budget 2015

Anticipated Funding Request (Budget 2015)

2014/15$0.000m

2015/16$0.000m

2016/17$0.000m

2017/18$0.000m

OperatingDescription of operating funding sought

Description of non-departmental funding sought

CapitalDescription of capital funding sought

Budget 2016


2016/17$0.000m

2017/18$0.000m

2018/19$0.000m

2019/20$0.000m






Budget 2017

Expected Funding Request (Budget 2017)

2017/18$0.000m

2018/19$0.000m

2019/20$0.000m

2020/21$0.000m




Budget 2018


2018/19$0.000m

2019/20$0.000m

2020/21$0.000m

2021/22$0.000m





Four-year Plan Part C: Considerations for developing

plans

August 2014

P AR T C : C ON SI D ER AT I ON S F OR D E VE LOP IN G PL AN S

IntroductionThis part of the guidance provides more detailed information to support agencies in developing their 4YP in relation to the key questions that the central team will be asking when engaging with and providing feedback on 4YPs. It includes more detail on the expectations relating to regulatory plans, property management and ICT.

Agencies should only provide a level of information that is sufficient to support the overall 4YP performance story. Agencies should consider each question or expectation as appropriate for your agency, and to consider the degree to which it should be reflected in your 4YP. Feedback will be formed based on the quality of your 4YP and the supporting documentation provided, along with conversations held through the central team’s engagement.

If you have any queries over the information sought, or require further more detailed guidance or support, please contact your central team lead.

Checklist/Central team feedback questionsThe questions below provide a useful checklist for agencies in developing their 4YP. The central team will also consider these when engaging on and reviewing 4YPs are outlined below.

Overall

7. Do all parts of the 4YP present an integrated picture of the agency? Does it clearly set out how the set of interventions delivered by the agency are the best combination to achieve the agency’s strategic direction? Does it clearly set out how all the various aspects of resources (people, capital, ICT, money) are best utilised to deliver these interventions?

8. Is there linkage between last year’s plan to this year; and if not, does it explain why?

9. Are the themes of the agency’s PIF Four-year Excellence Horizon incorporated in the 4YP?

Strategic direction

10. Does the 4YP highlight the key factors in the agency’s environment that will impact on its strategy and performance over the medium-term?

11. Does the 4YP provide a compelling narrative of the agency’s strategic direction to deliver on its agreed outcomes?

12. Does the 4YP show how the agency is contributing towards cross-agency outcomes and objectives?

13. Does the 4YP show how their strategic direction assists in achieving the Government’s priorities and delivering on government functional leadership priorities?

14. Does the 4YP (where relevant) show that the agency understands their customers and can describe the characteristics of those customers that are relevant?



15. Does the 4YP set out the nature and scope of the agency’s functions and intended operations and how the agency adds value?

16. Does the strategic plan hold together? Is it clear and is the strategy realistic in that the resources required are committed? (ability to draw a line through the components of the 4YP)

17. Is it a sustainable strategy? (stewardship perspective)

Strategic delivery

18. Is the agency’s operating model(s) fit for purpose in terms of delivering on its strategy?

19. Does the strategic delivery show that an agency, when applying their resources, has considered all of its resources in an integrated way?

20. Does the 4YP identify the cross agency activity that it is involved with?

21. Does the strategic delivery show that the agency has considered different ways (such as contracting out, client centric approaches, online services, collaboration with other parties, regulation) of delivering its set of interventions?

22. Does the 4YP provide a broad overview of their business as usual activity that is expected to continue to be provided in the current way?

23. Does the 4YP show how they are identifying opportunities to reduce costs through improved performance and through achieving efficiencies (eg, shared services, taking a cross-agency approach)? Does it do this for both for both departmental and non-departmental expenditure?

24. Does the 4YP provide evidence that the agency has thought through the challenges ahead (for both the department and also non-departmental expenditure for Crown Entities) and is clear on the key decision points and the trade-offs that may be required?

25. Is the 4YP clear on what the agencies lowest value activities are?

26. Does the 4YP provide evidence that the agency has considered how it will contribute to the Functional leads expectations (as outlined in section 2.2 and the Supporting Information) and highlighted these in the Plan as appropriate? Including:

Has the agency considered, as relevant to their operating environment, each of the nine GCIO expectations (see section 2.4), as agreed with the GCIO?

Has the agency shown how they are equipping themselves for information- and technology-enabled transformation?

Have agencies planned for and allocated funding to future common capability uptake?

27. Is it clear in the 4YP how the agency will evaluate its performance and progress against its strategic intentions and plan; for example through the use of targets, measures, clear deliverables with timeframes, milestones?



Risks to implementation and sustainabili ty

28. Has the organisation provided a succinct overview of its key assumptions that underpin the 4YP?

29. Has this section answered the question, what are the risks to delivery of the 4YP? (not only for departmental expenditure but also non-departmental expenditure, including Crown Entities)

Workforce and organisational capabili ty

30. Does the workforce narrative outlined in the 4YP support the agency to deliver on its strategic direction and the results it needs to achieve?

31. Does the 4YP show a clear change leadership approach?

32. Does the agency have a clear plan to achieve/maintain the culture and engagement required to deliver on its future direction and strategy?

33. Does the 4YP narrative provide a planned approach to the achieving the people capabilities the agency will need now and in the future?

34. Has the agency planned for any key capability risks that could compromise achievement of the agency’s strategy?

35. Does the 4YP provide a clear rationale for the agency’s projected medium-term workforce numbers and mix (supporting information in Annex 1)?

36. Is the workforce costs picture sustainable and within Government Expectations for Pay & Employment Conditions in the State Sector?

37. Does the 4YP show that the agency’s workforce strategy is positioning the agency to prepare for its future workforce needs beyond the medium term?

Financial summary

General

38. Does the 4YP add up correctly?

39. Does it include both departmental and non-departmental expenditure?

Balanced plan

40. Does the 4YP balance financially across the full four year horizon?

41. Does the 4YP only balance:

based on an unspecified balancing item(s)?

at the expense of the agency achieving its objectives?

based on new funding (excluding indicative allocations)?

42. Does the forecast spending reflect previous actual expenditure?



Baseline pressures

43. Are all the new non discretionary activities the agency will undertake in the next four years identified?

44. Are all the expected material cost pressures identified?

45. Does the total identified percentage of cost pressures against baseline seem reasonable?

46. Do the operational cost pressures arising from capital planning align with the capital story?

Changes that will generate savings to offset cost pressures and new initiatives

47. Are the identified changes that will generate savings sufficient and appropriate?

48. Do the changes described evidence a real and specific plan to generate savings or do they simply represent a plan to develop a plan when the problem gets closer?

Sustainability

49. Has the 4YP provided commentary of financially sustainable beyond the Four-year horizon?

50. Does the 4YP agree with CFISnet loaded forecasts from OBU 2014?

Third party charges

51. Where appropriate, does the 4YP detail anticipated changes to third party charges and the overall financial effect these changes will have?

52. Do any anticipated changes seem reasonable and support the Government’s broader strategic fiscal approach? (increased efficiency of service provision etc)?

Capital

53. Is capital baseline funding sustainable throughout and beyond the four year horizon?

54. Are capital cost pressures understood and quantified?



Regulatory Planning ExpectationsThis part of the guidance provides further assistance to agencies in developing their 4YP in relation to their regulatory priorities.

The overall objective of including information on the agency’s regulatory priorities is to ensure that the 4YP provides an integrated view of the agency’s medium-term strategy.

In order to do this a 4YP should show:

the agency/sector regulatory priorities over the plan period including proposals to:

o undertake significant reviews

o introduce or implement new regulatory requirements or major reforms, or

o undertake regulatory maintenance (eg, to improve enforceability or clarity)

a summary picture of how these regulatory priorities were determined and how they fit with its overall strategic objectives and its other interventions

how agency and sector regulatory priorities fit with the government’s overall key targets and strategic priorities

resourcing implications of regulatory priorities including implications for the government’s legislative programme

interdependencies between sectoral regulatory priorities, and

any improvements to the agency’s regulatory management systems that are planned or underway that will assist Chief Executives to meet their Regulatory Stewardship responsibilities.

While it is up to an agency how they structure the body of their 4YP, this information is most relevant to the sections relating to the Strategic Direction, Strategic Delivery and Organisational Capability and Workforce. Also it may be beneficial to include an annex for any more detailed regulatory information.


P AR T C : C ON S ID ER A T ION S F OR D E VE LO PIN G PL AN S

Property Management GuidanceThis table is to guide an agency’s considerations in developing their 4YP; it does not represent a separate annex that needs to be completed.

Por

tfolio

Man

agem

ent

PMCoE Expectation

Suggested 4YP Section

You should demonstrate in your 4YP… This will evidence…

Departments develop and maintain Strategic Property Plans5.

Strategic delivery if your department has a Strategic Property Plan approved by the functional leadership for property in accordance with current Cabinet mandate and whether initiatives and changes detailed in your Strategic Property Plan have been completed, will be completed, or will not be completed, within the timeframe provided in the plan?

...departments are carrying out strategic planning required.

...departments are delivering planned initiatives contributing to system savings.

Strategic intentions how your department is contributing to the BPS Programme (functional leadership for property) through your property planning.

...the high level description of key initiatives, including indicative timeframes, that represent your departments contribution to the Better Public Services programme through functional leadership for property.


if any changes to workforce capability (capacity and competency) are needed to better support meeting requirements under functional leadership for property.

...identification of capability (including people capacity and competency, process, technology, and information) gaps, and how these will be addressed.

Financial information

what funding you have allocated to support functional leadership for property?

...departments are appropriately resourcing costs of functional leadership.

5 In accordance with the Government National Property Strategy incorporating an all-of- government approach, collocation and sharing and spaceless growth



Wor

kpla

ce PMCoE Expectation

Suggested 4YP Section

You should demonstrate in your 4YP… This will evidence…

Departments move to maximum of 16sqm per FTE and apply Workplace Standards & Guidelines published by the PMCoE.

Strategic delivery the savings you will generate by reducing office and public interface accommodation footprint to density within the requirements of the Government National Property Strategy.

…your departments financial contribution to the Better Public Services programme through functional leadership for property.


where you have indicated changes to your workforce, the initiatives in your Strategic Property Plan which will support these changing requirements.

…the integration of property planning with the business, enabling property planning to support workforce planning with efficient and effective workplaces.

Financial information

what OPEX and CAPEX has been specifically allocated to deliver your property change initiatives.

…departments are scoping and resourcing planned initiatives, ensuring delivery of system benefits.



Information and Technology GuidanceThe following guidelines are guided by the Government ICT Strategy and Action Plan to 2017, and the Result 10 Blueprint. This table is to guide an agency’s considerations in developing their 4YP; it does not represent a separate annex that needs to be completed.

GCIO guidelines Discuss in these 4YP sections

Considerations by section The GCIO is looking for… Exemplars

Serv

ices

are

Dig

ital b

y D

efau

lt Partner with other agencies to make it easy for citizens and businesses to transact with government in a digital environment

It may be useful to engage your Service Delivery and Operations Managers (or equivalent) in responding to this expectation.

Strategic direction

This is about the government to citizen and business interactions. Services can be joined up within an agency, with another agency, by intermediaries, or by the citizen or business themselves.Describe your intentions over the next four years to: provide more services in the digital

channel; assist more customers to access digital

services; and provide joined up services to customers

based around life or business events.

Clear intention to: align to BPS R9 and 10 blueprints

(please refer: www.mbie.govt.nz/what-we-do/better-public-services; and www.dia.govt.nz/Better-Public-Services);

assist customers, in line with Result 10's 'Assisted Digital' action (incl. examples);

provide more digital services; and provide direct connect to systems and

information to enable service co-creation and co-delivery (where direct connect is an interface service that provides direct and secure access to appropriate government processes and data).

Result 10 participating agencies are now collaborating on a number of projects to deliver services in line with the Result 10 Blueprint, including: NZ Police collaborating with the

emergency services sector on the Next Generation 111 (NG111) which will provide improved, integrated emergency services to the public. Police is also working with other agencies to provide integrated services to victims in a digital environment.

Departure Information Project, to fully automate departure information requirements - NZ Customs, MBIE and Statistics NZ.

Digital Child Support / Sole Parent Project, to establish a single digital application for both child support and sole parent support - Inland Revenue and MSD.

Contact Centre Optimisation – Voice Biometrics between Inland Revenue and MSD; and a NZ Police led initiative to provide contact services to give an immediate and effective response to mass calling events (eg, natural disaster).

Strategic delivery

What will / are you doing to support digital service delivery - making digital the default primary channel. eg, through rationalising digital entry points; assisting customers through the Assisted Digital initiative; and consolidating non-digital channels.

A high level description of key initiatives, including indicative timeframes, and partner agencies or intermediaries, and how service performance will be measured and continually improved.


What changes to workforce capability (capacity and competency) are needed to better support digital service delivery.

Identification of capability (including people capacity and competency, process, technology, and information) gaps, and how these will be addressed.

Financial summary

What funding have you allocated to support digital service delivery, in line with BPS Results 9 and 10?

'Integrated investment planning targeted towards digital service delivery.




Considerations by section The GCIO is looking for… ExemplarsSe

rvic

es a

re D

igita

l by

Def

ault Service delivery

is actively designed by and for customer needs

It may be useful to engage your Service Delivery and Operations Managers (or equivalent) in responding to this expectation.

Strategic direction

This is about the citizen and business to government interactions. Describe your intentions over the next four years to partner with citizens and businesses to gain insights that inform the service design and delivery of government services and information.

Clear intention to: engage with the customer to ensure

their needs are being met (incl. examples); and

assist customers, in line with Result 10's 'Assisted Digital' action (incl. examples).

The Govt.nz citizen entry point was developed on an iterative basis and has involved user experience and testing throughout. This user input has driven the site's context and development.The Department of Internal Affairs have a commitment to leverage the Govt.nz service and will continue to seek out ways in which we can further tailor our offerings to the public’s need for easy access to government information and services online.The National Library continues to work with libraries across New Zealand to improve customer assistance to access online government services, in line with Result 10's Assisted Digital objectives.

Strategic delivery

What will / are you doing to co-design services with citizens and businesses?

A high level description of key initiatives, including indicative timeframes, and partner agencies.


What changes to workforce capability (capacity and competency) are needed to establish / grow service co-design capability.





Considerations by section The GCIO is looking for… ExemplarsIn

form

atio

n is

Man

aged

as

an A

sset Securely manage

strategic information assets across the entire lifecycle

It may be useful to engage your Knowledge and Information Managers (or equivalent) in responding to this expectation.

Strategic direction

This is about joining up information within the agency, as well as sharing information with other agencies and intermediaries.

Describe your intentions over the next four years to: embed information stewardship

accountabilities and responsibilities through the agency; and

leverage and share information assets, both within and outside the agency, to unlock the potential value and generate new economic and social benefits.

Clear intention to: identify the strategic information assets

and ensure they are securely managed across the entire lifecycle (create, capture, share, use, re-use, transfer, disposal);

provide greater secure access to information assets; and

leverage information assets from other agencies.

The Department of Internal Affairs holds many key information assets including Gazette; the New Zealand government Archives; and identity records in the form of births, deaths, citizen and passports.

There is great value to be leveraged through opening some of these assets for re-use. However, the department is also the custodian of a lot of personal information, which requires appropriate privacy and security protections to be in place, to protect the integrity and anonymity of data.

The Department quickly adopts, leads and champions key government standards, including domain integrity, the web accessibility and usability standards, and those related to privacy and security.

Strategic delivery

What will / are you doing to securely manage strategic information assets and to maximise their re-use.

A high level description of key initiatives, including indicative timeframes, and partner agencies, in particular related to: information management practices,

including information classification, information valuing, and best practice digital record keeping;

information management education and awareness raising;

improving the accessibility and findability of information contained in the assets;

adoption of key standards, including domain integrity and the web accessibility and usability standards, interoperability;

embedded privacy and security controls; and

information sharing initiatives.


What changes to workforce capability (capacity and competency) are needed to improve information stewardship within the agency, and improve the ability to share information with appropriate privacy and security considerations in place.

'Identification of capability (including people capacity and competency, process, technology, and information) gaps, and how these will be addressed.





form

atio

n is

Man

aged

as

an A

sset Proactively

release information, making it open by default (unless there is a valid reason to withhold it), ensuring it is easily discoverable, accessible and re-usable

It may be useful to engage your Information Managers (or equivalent) in responding to this expectation.

Strategic direction

This is about releasing information to the public unless there is a valid reason to withhold it. Ideally information is published in machine readable formats.Describe your intentions over the next four years to release public information assets for re-use.

Clear intention to: release information assets to the public for

commercial and social re-use; and commitment to the Declaration on Open

and Transparent Government, and to the Open Government Partnership objectives.

The Department of Internal Affairs' high value datasets are identified and released for non-government re-use, and are published on data.govt.nz. The department also shares customer research gained in the development of the Govt.nz website, through the New Zealand Government Web Toolkit (https://webtoolkit.govt.nz/) for wider consumption.

Strategic delivery

What will / are you doing to accelerate the release of information assets to the public for commercial and social re-use.

A high level description of key initiatives, including indicative timeframes.


What changes to workforce capability (capacity and competency) are needed to proactively release information, with the appropriate privacy and security considerations in place.






vest

men

t and

Cap

abili

ty a

re S

hare

d Accelerate adoption of common (AoG) capabilities

It may be useful to engage your Chief Information Officer (or equivalent) in responding to this expectation.

Strategic direction

This is about agencies adopting common capabilities.Describe your intentions over the next four years to: adopt available common

capabilities; and plan for uptake of future common

capabilities.

Clear intention to: uptake mandated common capabilities; and investigate non-mandated common

capabilities.

The Department of Internal Affairs proactively adopts common capabilities as they become available. Examples include: The Common Web Platform

(CWP): DIA is the largest consuming agency of the CWP, and now has a total of ten websites on the shared platform. DIA actively contributes to raising enhancements for the platform to evolve the value and potential of the capability for other websites and agencies to leverage.

Desktop as a Service (DaaS): In the department's preparation to migrate to a virtual desktop environment, DIA ensured that they were engaged in the DaaS project. Because of this early engagement and consideration of a future common capability, within six month's of the capability being confirmed, following contract negotiations and solution refinement, DIA was able to rollout DaaS across the department as early adopters of the solution.

Strategic delivery

What common capabilities will / are you leveraging?

1. Commitment, including timeframe, to uptake mandated common capabilities, or plans to increase use if currently using these common capabilities.

2. Intention to explore, including timeframe, of non-mandated common capabilities, or plans to increase use if currently using these common capabilities.

3. Intention to use the common capability panel contracts.

4. Plans to uptake 'coming soon' common capabilities.

For a complete list of available and coming soon products and services, please visit: http://ict.govt.nz/services/

Risks Describe any challenges to further common capability uptake.

implications of each challenge (potentially expressed as time, cost, benefit); and

proposed strategies to overcome identified challenges.


What changes to workforce capability (capacity and competency) are envisaged to result from adoption of common capabilities.

Identification of workforce change, considering: Shift in workforce capacity due to services

being sourced externally; Shift in ongoing competency requirements

(including preparation to transition to the public cloud); and

the impact on the organisational operating model.

Financial What funding have you allocated to the Annex 2 signals how common capabilities will be




Considerations by section The GCIO is looking for… Exemplars

summary (incl. Annexes 2 and 3)

adoption or increased use of common capabilities?

funded from current baselines.Annex 3 signals any investment intentions to uptake common capabilities

Inve

stm

ent a

nd C

apab

ility

are

Sha

red Align and

integrate ICT planning with business strategies and government priorities, and leverage common frameworks and standards

It may be useful to engage your Enterprise Architects (or equivalent) in responding to this expectation.

Strategic direction

This is about:1. Fully integrating ICT planning with

AoG (system), sector, result (cluster), and agency priorities, strategies and plans.

2. Aligning to common standards and practices, in order to better fulfil the collective interest objectives across the sector (i.e. by using GEA-NZ and agreed standards and architectures)

Describe your intentions over the next four years to: integrate strategy and planning; incorporate GEA-NZ into strategy

and planning; and contribute to development of

common architectures and standards.

Clear intention to: integrate strategy and planning; incorporate GEA-NZ into strategy and

planning; and contribute to development of common

architectures and standards.

In order to progress the integration of ICT planning, support of collective interests, and development of common standards, the transport sector has established a portfolio of collaborative work across ICT capability and information sharing. Under the umbrella of a Collaboration and Capability Strategy for the sector (including a vision, goals and objectives across corporate services workstreams), and working via an established ICT/IM forum, the ICT programme includes joint operation centres (accommodation and operational efficiencies), expertise centres (i.e. security standards and frameworks), enterprise search (common solution and procurement), and a programme establishing an information Domain Plan with Statistics New Zealand.


What workforce changes are needed to develop strategy and architecture capability (capacity and competency).

Identification of strategy and architecture capacity and competency gaps, and how these will be addressed. For competency, consider activities primarily related to information strategy, advice and guidance, business strategy and planning, technical strategy and planning, and service strategy and design. Example roles include strategists and architects, service designers.




Considerations by section The GCIO is looking for… ExemplarsLe

ader

ship

and

Cul

ture

Del

iver

Cha

nge Partner with

agencies to plan, deliver, and leverage shared capabilities

It may be useful to engage your Executive Leadership teams, including Chief Information Officer (or equivalent) in responding to this expectation.

Strategic direction

This is about agency collaboration to build or leverage shared capabilities based on common business needs. Shared capabilities can be transactionally oriented or expertise oriented, for example; Centres of Expertise and Communities of Practice.Describe your intentions over the next four years to partner with other agencies to build or leverage shared capabilities.

'Clear intention to: work with other agencies, including the

GCIO, where an opportunity exists for a new shared capability; and

share investment and capabilities with other agencies and across a sector or cluster.

The transport sector has established a Security of Centre of Expertise based on common business needs. Initially drawing upon NZTA security specialist capability and standards, and supplemented by jointly-funded additional resource, the CoE has carried out work for Maritime New Zealand, avoiding duplication and overcoming the issue of scarce skills and the extent of engagement with external providers. Services have matured to as point where they will be offered to others in the sector, illustrating shared investment and capability, and demonstrating a response to a required shift in workforce capacity and capability.

Strategic delivery

What shared capabilities will / are you building or leveraging?

'A high level description of key cross-agency initiatives related to building and/or using shared capabilities, including indicative timeframes and partner agencies, in particular related to opportunities for agency/cluster-specific initiatives to be further federated across government (eg, customer-facing initiatives aligned to R10).


What changes to workforce capability (capacity and competency) are envisaged to result from greater agency collaboration and shared capabilities.

'Identification of workforce change, considering: the shift in workforce capacity due to

greater collaboration and resource sharing; the shift in ongoing competency

requirements; and the impact on the organisational operating

model.




Considerations by section The GCIO is looking for… ExemplarsIC

T Sy

stem

Ass

uran

ce Establish and strengthen ICT Assurance (planning and monitoring)

It may be useful to engage your ICT assurance functions in responding to this expectation.

Strategic direction

This is about embedding assurance activities to provide Chief Executives and Ministers confidence that their investment will realise the intended benefits and return on investment.Describe your intentions over the next four years to embed assurance practices, including ICT assurance, in your agency.

Recognition that robust assurance practices increase value delivery and are promoted through effective governance structures.

Evidence that agencies are working to provide CE's with confidence that their ICT-enabled programmes, projects, and operations are being effectively managed to deliver their expected benefits.

The GCIO is continuing to develop the ICT assurance function in collaboration with agencies and the Corporate Centre. The GCIO ICT Assurance team through published guidance and workshops with agencies will develop appropriate assurance plans which will assist in responding to the 4YP. Please contact [email protected] if you have any further queries.

Risks Describe your organisational risk and assurance approach.

A considered approach to identifying and managing business risks, including ICT-enabled investment and ICT operational risks.


What changes to workforce capability (capacity and competency) are needed to further develop and embed your assurance capability based on the recent guidance in the GCIO Assurance frameworks (see: www.ict.govt.nz/ict-system-assurance/).

Identification of capability gaps (including people, capacity and competency, process, technology, and information), and how these will be addressed.

Privacy and security pervades business practice and is a core design feature in all business operations, processes and systems

It may be useful to engage your Chief Privacy Officer and Chief Information Security Officer (or equivalent) in responding to this expectation.

Strategic direction

This is about embedding privacy and security activities across your agency, to build New Zealander's trust and confidence in public services.Describe your intentions over the next four years to embed roles of privacy and security across your agency.

Clear intention to embed privacy and security practices across the organisation.

Security and privacy guidance has been promulgated across the Department of Internal Affairs, continuing our commitment to embed best practice through training and knowledge across dept. Security requirements, risk, assurance, and testing are already embedded in the department's online system development and upgrades. The Department aligns with the GCIO's expectations, and the recently-appointed Government Chief Privacy Officer's (GCPO) expectations are being integrated in our business.

Strategic delivery

How will privacy and security practices be embedded and promulgated as a priority throughout your agency?How will the profile and awareness of privacy and security be raised across the organisation?

A high level description of key initiatives, including indicative timeframes, and partner agencies and other third parties, in particular related to: providing evidence that agencies are able

to meet the Stewardship expectations of CE's; specifically for information, privacy and security matters to be managed effectively; and

clarifying the roles and governance that will support privacy and security practices.

Risks Highlight any barriers and challenges to: 'a description of the impact of each barrier


http://www.ict.govt.nz/ict-system-assurance/



Considerations by section The GCIO is looking for… ExemplarsIC

T Sy

stem

Ass

uran

ce meeting privacy and security requirements over each of your operations, processes, and systems.

or challenge; and identification of steps required to overcome

or minimise any barriers or challenges.


What changes to workforce capability (capacity and competency) are needed to further develop and embed your privacy and security processes and practices.

identification of capability (including people, capacity and competency, process, technology, and information) gaps, and how these will be addressed; and

consideration of the implications of capability improvement arising from the GCIO review.


Letter - State Services Commissionssc.govt.nz/sites/all/files/2015-four-year-plan-guide.docx · Web...

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Transcript of Letter - State Services Commissionssc.govt.nz/sites/all/files/2015-four-year-plan-guide.docx · Web...