Part 1: Goal progress reports

This section includes a progress report on each of the six Development Goals:

1 Employer of Choice
2 Excellent State Servants
3 Networked State Services
4 Coordinated State Agencies
5 Accessible State Services
6 Trusted State Services.

The section sets out what achievement of the goal will look like, how the State Services Commission is measuring progress, progress made against the 2007 milestone and towards the goal, and priority actions for agencies to achieve the goal and the 2010 milestone.

Employer of Choice

Development Goal: Employer of Choice	Milestone achieved at June 2007	June 2010 milestone	June 2015 milestone
Ensure the State Services is an employer of choice attractive to high performers, who are committed to service and the achievement of results	A comprehensive guide to good employment practice, developed with input from State Services employers and unions, in place for use across government	The State Services is increasingly recognised as a professionally rewarding and desirable place to work, where high performing State servants are committed to achieving results	State Services agencies are positive, inclusive workplaces populated by engaged, high performing staff focused on current and future results

What does achievement of this Development Goal mean?

Job seekers are attracted to the State Services by its reputation for high achievement, integrity and service. Those who become State servants see that they and their colleagues are led, managed and developed well. They experience a positive, inclusive work environment, are highly productive, engaged in their work and committed to providing excellent services that make a real difference to the lives of New Zealanders.

State servants are well regarded both within their community and by their peers. Their commitment to service excellence attracts like-minded people from the private sector and overseas to work in New Zealand's State Services.

Achieving the Employer of Choice goal is challenging in a tight labour market and against the changing expectations of a new generation of employees and increasing public expectations. It means significant change in how State servants are recruited, developed, engaged and retained.

A successful employer of choice programme will make it easier for high performers to see how they can contribute in a variety of State Services agencies and to know that their skills will be valued and developed within and across those agencies.

How we measure progress

Two indicators measure progress towards this goal. They assess how attractive the State Services is to high achievers with a commitment to service (reputation), and how well the State Services is doing as an employer of high achievers (engagement):

Indicator 1
Reputation: Perceptions of the State Services as a place to work

Indicator 2
Staff engagement: Engagement levels of staff in the State Services agencies.

Progress

Indicator 1
Reputation: Perceptions of the State Services as a place to work

If the State Services wants to attract people with the skills and values needed to excel in delivering services to the government of the day and New Zealanders, we need to understand what they consider are the attributes of employers of choice.

The SSC commissioned independent employment brand research about New Zealanders' perceptions of State sector organisations, compared with perceptions of corporate and not-for-profit organisations, as places to work. Seventy five per cent (75%) of those surveyed had never worked in the State sector. This means the majority of the responses about the State sector were based on perception, rather than experience.

Perceptions of the State sector were generally negative, with 60% of all respondents unwilling to consider working for the State sector in the future. The negative perception was stronger for those who had not worked in the State sector, with 70% of those who had never worked for the sector unwilling to consider working for it in the future. However, the view of those who had previously worked in the State sector was much more positive, with only 37% unwilling to consider working for the State sector again.

These findings were less positive than those for the corporate and not-for-profit sectors and reinforce the gains to be made by improving perceptions of the State sector as an employer of choice.

Employment preferences of people fitting seven different psychographic profiles have been investigated, with the findings showing central government is the second least popular employer across all psychographic profiles.

These profiles can be used by agencies to target their recruitment strategies to different groups as appropriate to their business needs and organisational realities.

Relevant employment brand research findings have been provided to the agencies that participated in the research. A State Sector Brand Identity Group has been established, with a number of agencies starting to use the findings to inform their branding strategy development.

The Department of Conservation (DOC) is an example of an agency that is working to maintain its positive employment brand:

"Department of Conservation's brand is widely recognised and increasingly part of New Zealand's strengthening national identity. DOC recognises that New Zealanders hold a set of perceptions of our organisation in their minds, whether we like it or not, and that these perceptions should be monitored and influenced if necessary. Ensuring this brand or reputation remains positive is essential to gaining favour with the public, prospective and current employees, and to the ongoing success of the Department. The foundation for the success of our brand is a consistent, nationwide, corporate identity that includes signs, vehicles, uniforms, website and other communications. We are increasingly aware that the Department's brand is an asset and that we must manage it carefully for its benefits, not only as our technologies and innovations evolve, but with the changing nature of the workplace and our status as an employer of choice." Alastair Morrison, Chief Executive, Department of Conservation

At a sector level, the findings have been used to inform the upgrade of the New Zealand Government Jobs Online website, www.jobs.govt.nz, and the State Services Summer Internship Programme advertised on this website. The findings can be used to benchmark future progress towards the State Services having an excellent reputation as an employer of choice.

The SSC has also led work to develop a Targeted Recruitment Advertising Guidebook, which is available on the Public Sector Intranet. This guidebook provides easy, practical guidance on how to write a recruitment advertisement to appeal to the type of person best suited for a particular role.

"Whoever did this [ www.jobs.govt.nz ] site really knows what they are doing. I know exactly what it is for and what to do ... a simple task-based site." Gerry McGovern3, 7 September 2007

Indicator 2
Staff engagement: Engagement levels of staff in State Services agencies

Corporate Leadership Council (CLC) research shows that a key factor in becoming an employer of choice is that workplaces are positive, inclusive and engage the support of employees wishing to progress their careers with the employer. This research has found greater employee engagement can lead to increased customer satisfaction.

Research undertaken by The Gallup Organisation has identified organisations with high levels of employee engagement experience lower turnover, achieve customer loyalty and employees demonstrate better productivity.

In other words, engaged employees try harder, perform better and are less likely to leave. As shown in the following quote, engagement surveys provide employers with information about what they need to do to improve the engagement levels of their employees.

"International research tells us that highly engaged employees are one of the most important factors in creating a highly performing organisation. As a Department, we had already used climate surveys to identify improvements and measure our progress, but we knew we could do even better. Using an engagement survey has given us information on what to improve about our people management that would really make a difference. Focusing on addressing the most important issues identified by our people helps us to develop our organisation, deliver better services to our customers and achieve our outcomes." Colin MacDonald, Deputy Commissioner, Inland Revenue

In 2006 the SSC led an across-government tender process to select an engagement survey for use by State Services agencies. This resulted in the selection of the Gallup Q12 Engagement Survey for voluntary use by agencies. The SSC's focus during 2007 has been on ensuring structured implementation of Gallup Q12 and reasonable uptake across the sector. Five agencies had implemented the Gallup Q12 by June 2007, the minimum number needed for Gallup to provide aggregated sector results. Several more agencies have signalled an intention to use the survey by December 2007.

Aggregated results provided to the SSC from the first benchmarking report for the New Zealand State sector database (2004-2006), compared with other databases, for example Gallup Worldwide, New Zealand and public sector (2004-2006), indicate that New Zealand State sector engagement scores lag in a number of areas. The engagement scores are lower than those of other databases in foundation areas such as "knowing what's expected at work" and "having the opportunity to do one's best every day at work". Results appear to be comparable to other sectors in the growth and development questions. However, the Gallup Organisation has urged caution in interpreting the scores because of the relatively small number of agencies included (five), as well as the size of these agencies.

The selection and gradual uptake of a research-based employee engagement survey will deliver benchmark data about the extent to which State Services workplaces are seen as positive and engage the support of their employees. Once the data is available to an agency, the key to improving employee engagement is what is done with that data - the implementation and monitoring of action plans.

Where we are now

Initiatives undertaken during 2006/07 have laid the foundation for developing the State Services as an employer of choice, attractive to high achievers with a commitment to service.

From the employment brand research, State Services agencies have greater knowledge of the characteristics of high achievers and what appeals to them. A number of agencies are using the brand research information to improve their ability to attract the people they need to deliver results.

The employment brand results are also proving useful for recruitment initiatives, such as the New Zealand Government Jobs Online website, www.jobs.govt.nz, and the State Services Summer Internship Programme. Continued use of this information by the SSC and agencies is expected to improve the attractiveness of the sector to those it wants to employ, enabling better results at the 2010 milestone.

The progressive uptake of the research-based common engagement survey, Gallup Q12, will provide benchmark data on the extent to which State Services workplaces engage the support of their employees. The data is also proving useful for other purposes, for example, by providing information on employee learning and development. In future years there will be more comprehensive data showing engagement levels and trends for individual agencies and the State sector overall.

Those agencies that have begun using the engagement survey have information on what they need to do differently to improve the engagement and performance of their employees. The engagement model also helps their conversations with staff on the connections between their work and the results they are working to achieve. Some agencies are seeing real examples of engaged employees delivering excellent customer services, contributing to improved results for New Zealanders.

The importance of career development in attracting and retaining staff was highlighted in the employment brand research as well as the SSC's 2005 Career Progression and Development Survey. The SSC has led work to develop an online, interactive Career Development Framework that is available on the Public Sector Intranet. It provides State servants with a picture of career possibilities in the State sector, together with career tools to assist their career choices and development.

In considering achievement of the 2007 milestone - a comprehensive guide to good employment practice developed with input from State Services employers and unions - the SSC now has a number of foundation tools and frameworks in place for use across the sector:

• a research-based behavioural competency model (Lominger)⁴
• a common research-based employee engagement survey (Gallup Q12)
• the Learning and Development Framework
• the Career Development Framework
• the Targeted Recruitment Advertising Guidebook.

The establishment of these tools and frameworks, in consultation with agencies and the Public Service Association, demonstrates achievement of the guide envisaged in the 2007 Employer of Choice goal milestone.

PRIORITY ACTIONS To achieve this goal and the 2010 milestone, agencies need to: Contribute to sectoral initiatives that promote a positive image of the State Services as an employer of choice, consistent with the employment brand research. - Examples are use of the New Zealand Government Jobs Online website, www.jobs.govt.nz, and the State Services Summer Internship Programme advertised on this website Use the brand research to convey messages about the nature of the workplace and the work, as part of a coordinated organisation-wide approach to attract the people needed to deliver excellent services to Government and New Zealanders Target recruitment communications to specific psychographic groups to enhance the State Services' ability to attract the best candidates - This will increase candidates' level of consideration and keenness to work for the State Services by inspiring them to self-select for roles for which they are best suited Ensure each element of the recruitment experience aligns with expectations - Having established a strong employment brand message at both sector and agency level, it will be important to ensure that actual recruitment (and employment) experience matches expectations Adopt, implement and communicate the benefits of a common research-based engagement survey - The advantages of using the syndicated Gallup Q12 Engagement Survey need to be understood more clearly throughout the State Services to improve employee engagement and, consequently, service delivery. Agencies can contribute by sharing their experiences implementing the surveys and in action planning.

Excellent State Servants

Development Goal: Excellent State Servants	Milestone achieved at June 2007	June 2010 & 2015 milestones
Develop a strong culture of constant learning in the pursuit of excellence	A framework for learning and development across government agencies	See Employer of Choice goal

What does achievement of this Development Goal mean?

Whatever role State servants have in the State Services - front line, support, policy, delivery or management - they are encouraged and supported to achieve excellence.

Mentors and senior State servants provide guidance and advice as State servants' careers progress. State servants are able to move between State Services agencies and initiatives, pursuing interesting and challenging assignments.

If they aspire to more complex and senior roles, State servants are supported and guided on that path. They see the State Services as a unified field of endeavour, with shared values and goals, and are committed to delivering excellent services to New Zealanders.

The agencies of the State Services know their current and future staff capability needs and these are mapped with the whole sector in mind. Agencies invest in development of their staff to reflect these needs and know when staff members are ready to move to the next logical development opportunity - either within the agency or elsewhere in the State Services.

How we measure progress

The three indicators of progress cover individual staff development experiences and agency and sector programmes:

Indicator 1
Staff: State servants' perceptions about the effectiveness of development plans, processes and opportunities

Indicator 2
Chief executive/agency: The extent to which agencies are specifying the competencies they require of their people to meet current and future organisational needs

Indicator 3
Sector: The extent to which a learning and development framework is used across the sector to improve agencies' performance.

As this Development Goal is to be merged with the Employer of Choice goal, future Employer of Choice goal reports will include comment on progress towards developing a strong culture of learning and development. See Part 2 'Preparing for the future' for details about the merged Employer of Choice goal.

Progress

Indicator 1
Staff: State servants' perceptions about the effectiveness of development plans, processes and opportunities

Having the research-based Gallup Q12 Engagement Survey methodology in place is a major achievement. Agencies can use the results from three items in the survey to track staff perceptions of learning and development, and plan specific actions to improve performance. Aggregated agency results can then be used to track progress on this indicator for the whole sector. The three items are:

• There is someone at work who encourages my development
• In the last six months, someone at work has talked to me about my progress
• This last year, I have had opportunities at work to learn and grow.

While initial aggregated results from the survey are encouraging in this area, more data is needed to draw robust conclusions about progress.

Indicator 2
Chief executive/agency: The extent to which agencies are specifying the competencies they require of their people to meet current and future organisational needs

During 2006, the SSC led the tender process to select a research-based behavioural competency model for State Services agencies to use. A sector-wide contract was entered into with the global leadership development organisation, Lominger International, for an intellectual property licence to use its competency material and associated tools. The Lominger model draws on major and continuing international studies on individual and organisational performance, and provides a common language to describe behaviour in the workplace.

While implementation of the model is not mandatory, the SSC is strongly encouraging agencies to use it. A common language to describe expected standards of behaviour (competencies) will be of significant mutual benefit for the State Services by providing a 'whole of sector' approach to people management and enhancing development and career opportunities for employees across the sector. In addition, there are commercial benefits in participating in the sector-wide agreement. For example, agencies no longer need to negotiate and fund their own licence individually and they can negotiate significant discounts to purchase the competency material and associated tools based on economies of scale.

The Ministry of Fisheries shows how using the Lominger competency model is achieving more integration and clarity, and increased levels of employee engagement:

"Implementing the Lominger competency framework provides a useful vehicle for investing in our staff and improving productivity that is good for staff, good for the organisation, good for the wider State Services and ultimately good for New Zealand. In particular, key benefits include: The development of our performance culture and capability development aligned to the future direction of the organisation More clarity for staff around what's expected and valued in the organisation Reduced siloism and greater flexibility as groups adopt common toolsets and a common commitment to performance and development at the individual level Improved staff development with a framework that gives staff more ability to participate in their own development and the support to do so." Stan Crothers, Acting Chief Executive, Ministry of Fisheries

At June 2007, approximately 30 agencies were at one of the following stages:

• a definite decision has been made to implement Lominger as the preferred research-based behavioural competency model and implementation has commenced
• implementation of the Lominger model is being planned
• agencies are continuing with their existing model but supplementing it with research-based, performance improvement information and practical tools provided by Lominger.

The SSC sees this as positive progress since the agreement to use Lominger as the preferred competency model was only signed in December 2006.

Implementing and integrating such a model into all aspects of the employment cycle is a medium-term undertaking, as illustrated by the quote below. This anticipates an implementation timeframe of years rather than months even for agencies that have identified it as a priority.

"The Lominger competency framework is a key tool in developing our integrated people management strategy. Our focus with Lominger is in the development of a Manager Accountability and Competency Framework, which underpins our plan around growing manager capability. This framework will be used to inform recruitment, training, succession planning, talent management, and performance management. Lominger will be a core tool for our managers across the Ministry and we are working now to up-skill them all in how to use Lominger in their day-to-day work." Belinda Clark, Secretary for Justice

A key factor in achieving successful integration of the Lominger competency model is whether Human Resources and/or senior management drive the implementation and ongoing use of the model. Given there are links to individual and organisational performance, it will be vital that senior management understand and actively support the implementation of the model. The Ministry of Agriculture and Forestry has identified a sound 'top-down' approach to rolling-out the Lominger model, whereby all tiers of management are consulted with, and buy in to, the approach taken.

"Our framework using the Lominger model was developed through a comprehensive and highly participative process of 'co-creation' by MAF managers. We defined what it takes to be successful at each level of management and what capabilities we need as a whole organisation. MAF now has strong alignment of Accountabilities, Authorities and Capability, which support our managers to work to role and add value to the people they lead and manage. The Lominger materials have made previously obscure people management concepts accessible and practical to our people - and the results are beginning to show". Murray Sherwin, Director-General of Agriculture and Forestry

Indicator 3
Sector: The extent to which a learning and development framework is used across the sector to improve agencies' performance

People with the right skills are a fundamental requirement for the State Services. The competence of State servants significantly determines the quality of experience New Zealanders have of government. A learning and development framework has been identified as a key enabler for improving New Zealanders' experiences.

The launch of the Learning and Development Framework on 30 June 2007 signalled achievement of the 2007 milestone. The framework provides a guide for agencies to plan, prioritise and structure learning and development activities that contribute to improved organisational performance and to retaining excellent employees. It is too early for the SSC to tell how many agencies are adopting the framework.

It is also too early to assess the effectiveness of agencies that systematically base their learning interventions on the current and future needs of the business for all staff, as the approach has only recently been adopted. In some agencies this more systematic, organisationally-focused approach has been a consequence of significant organisational change where current and future people capability was identified as a priority.

Leadership development, as a component of learning and development, currently lacks traction in many agencies as well as cohesion at a sector level. In addition, assessment of the effectiveness of learning interventions is patchy, with only a small number of agencies indicating to the SSC that they are taking a systematic approach to evaluating their learning and development outcomes.

This is a concern, given the estimated expenditure on learning and development activities within agencies (3-5% of personnel costs) and the lack of 'return on investment' information. There is also a lack of evidence of agencies having a well developed business case for starting such activities.

Aligning learning with business needs and evaluating learning and development outcomes are cornerstones of the Learning and Development Framework. The SSC expects that the concerns outlined above will be alleviated as use of the framework increases over the next 12-24 months.

Where we are now

There has been significant overall progress in the past year towards achieving this goal. Agencies can now use a range of common tools to describe expected behaviour and assess staff satisfaction with learning and development frameworks.

Initiatives undertaken during 2006/07 have laid the foundation for achieving this goal and indicate the development of a strong culture of continuous learning in the pursuit of excellence. These initiatives include:

• Selecting and gradual uptake of a research-based common engagement survey, Gallup Q12, to deliver benchmark data relating to State servants' training and development experiences.
• Procuring Lominger, a research-based behavioural competency model, for use across the State sector, which enables agencies to more clearly describe their current and future capability needs, and make links to individual and organisational performance.

Over time, as more agencies adopt the Lominger competency model, it will provide the basis for integration into the full range of people management practices across the employment cycle. It will also provide sector benefits, for example in relation to developing a career path in the State Services. This will impact on employment brand, career pathways and ultimately the achievement of the Employer of Choice goal, as well as clearly describing behaviours required for achievement of the Accessible State Services and Trusted State Services goals.

• Developing a Learning and Development Framework that enables agencies to more systematically base their learning interventions on the current and future business needs.

PRIORITY ACTIONS To achieve this goal and the 2010 milestone, agencies need to progress implementation of the Gallup Q12 employee engagement survey, the Lominger research-based behavioural competency library and tools, and the Learning and Development Framework. In addition, agencies need to: Share practices in relation to the implementation of the tools and framework Integrate the Lominger competency model into all aspects of people management throughout the employment cycle and track implementation Obtain staff feedback on satisfaction with their development, plan actions to improve development opportunities, provide feedback on progress and encourage further development Prioritise aligning learning with business needs, including a specific focus on leadership development, and evaluate the effectiveness of learning Take an integrated and cohesive approach to leadership development and talent management at the sector level.

Networked State Services

Development Goal: Networked State Services	Milestone achieved at June 2007	June 2010 milestone	June 2015 milestone
Use technology to transform the provision of services for New Zealanders	Networks and Internet technologies are integral to the delivery of government information, services and processes	Government shared infrastructure is used to deliver user-centred services, and support joint results	New Zealanders confirm that their experience of State Services has been transformed through technology

What does achievement of this Development Goal mean?

Agencies regularly use networks and Internet technologies to deliver government information and services, and New Zealanders can interact and transact with government across the variety of channels they are familiar with in their daily lives. They can use call centres, text messaging, email and websites, as well as the more traditional options such as telephone, mail and face-to-face interviews to receive the government services that suit their diverse needs⁵.

Looking forward to 2010, 2015 and beyond, technology will continue to be part of the ongoing transformation of New Zealanders' engagement with government. For agencies, it will contribute to improved results.

State servants will think of themselves as part of a single, user-centred enterprise that has multiple points of delivery and interaction with the people it serves. State agencies will be highly attuned to the many opportunities of evolving network technologies and shared systems, and will seize the chance to transform the way government works with, and for, New Zealanders. Over time the nature of government services will shift in emphasis toward greater participation by New Zealanders in service design and delivery.

The design and delivery of government services will continue to adapt and meet New Zealanders' changing needs. Service providers, along with most New Zealanders, will become increasingly adept at using new network technologies such as social networking tools.

How we measure progress

Three indicators were developed to assess where technology supports quality and service consistency, as well as to provide greater convenience and ease of use:

Indicator 1
Grouping of services/transactions that apply technology to allow an individual - from one place at the same time - to access multiple programmes

Indicator 2
Channel synchronisation of government transactions - within an agency or across government

Indicator 3
The extent to which technology supports a user having to give the same information to government only once.

Progress

The progress of each indicator is illustrated in the SSC's qualitative research. Two case studies from the research are used in this section to illustrate progress for each indicator: a New Zealander returning with his family from overseas and a first-time importer expanding a roofing company to become a product business.

Indicator 1
Grouping of services

Findings from the qualitative research indicate good progress has been made in applying technology to group services at a single entry point, making online access to services more convenient for users. Information is being brought together from different government sources and multiple transactions can take place on one site.

For example, integrating services to enable online company registration has continued. As of 2007, customers forming a company online can register for Goods and Services Tax (GST) and apply for an Inland Revenue (IRD) number at the same time. More importantly, the IRD/GST number is returned to the customer within minutes of the Inland Revenue receiving the data, with all changes updated between Inland Revenue and the Companies Office in real-time. This significant improvement is likely to raise New Zealand's placing in the World Bank's 'Ease of Starting Up Business' survey from its current third ranking to being one of the fastest OECD countries in which to start up a business. The World Bank ranking is significant as it is quantified by both the regulatory and legal hurdles an entrepreneur must overcome to incorporate and register a new firm as well as the procedures, time and cost involved.

In 2007, the SSC redeveloped its portal services, http://newzealand.govt.nz, continuing to transform how New Zealanders access and transact with government. New Zealanders can access government information and services in one place, without knowing in advance which agency provides the resources they want. One of the portal's new features is the all-of-government search mechanism, which searches not only government web pages, news and images, but also some government information sets that are not available on the World Wide Web.

The case studies show the importance of services being grouped conveniently. The New Zealander returning home from overseas noted room for improvement, as quoted below:

"It would have been nice if it was all one body where you put in an application for this and the idea is that it goes through the stages it needs to go through and each agency does talk to each other, so the person coming into the country through immigration, you need an IRD number, here's your IRD number. We've already taken the information out of that one packet that you've submitted and then that packet gets moved along the system such as your health, police checks, security." Returning New Zealander

"We learnt a lot and we definitely got a lot of help and support from Customs ... Customs helped us with The Customs Code and they were extremely helpful. To get the ins and outs or the breakdown of what it costs to import, I dealt with [transport company] and customs brokers to find out the difference between what a customs broker could offer us over what [transport company] could offer us, and they have everything." Small business importer

The small business importer (quoted above) chose to use an intermediary⁶ to arrange logistics for his first import shipment from China.

The online Guide to Online Participation and its introductory booklet, released in September 2007, are responding to New Zealanders' expectations that they will be more involved in the design and delivery of policy and services. It will help State servants navigate the complex and exciting terrain of technology-enabled public engagement and mitigate the risks of online participation. It is meant as a first step in an evolving area of theory and practice, and encourages State servants to lead the way in applying and testing it in order to produce better tested and more responsive policies and services.

If grouping of services is meeting the needs of users better, by 2010 an entrepreneur planning to set up a café will use www.business.govt.nz to check demographic and business data to choose a suitable location for her café. As well as obtaining business advice, forming the company and obtaining IRD/GST numbers, she will also be able to lodge permit applications with the local council, enter details of product and equipment imports with Customs and the Ministry of Agriculture and Forestry, and set up employment contracts based on Department of Labour templates. To manage all these tasks, the entrepreneur will have established a personalised presence on the www.business.govt.nz site to keep track of the various transactions.

Indicator 2
Channel synchronisation

There has been some progress in channel synchronisation in the business sector, allowing New Zealanders to interact with agencies through the use of various channels - such as email, telephone, in person - without any break in service.

One example is the Accident Compensation Corporation (ACC), which serves more than 1.7 million claimants annually. The ACC integrated computer network connects its service centres, standardises claim-related tasks, locates all related information in one place and is accessible by all operational staff regardless of the channel used by the claimant. To manage the volume of transactions across this network, standard operating procedures and customer service principles are applied across all channels, ensuring that the needs of different types of claimants are met in a consistent way.

Applying common data and business standards is essential to achieving integrated processes and consistent data presentation across multiple channels. One example of an all-of-government framework enabling this integration is the e-government interoperability framework (e-GIF). Led by the SSC, the e-GIF is a regularly reviewed collection of policies and standards endorsed for New Zealand government information and communications technology (ICT) systems. The e-GIF aims to make systems, knowledge and experience reusable and encourage online access to government.

The e-GIF plans to use a wiki to allow agencies to work collaboratively on government web standards. This collaborative tool not only offers the potential to speed up standards development, it also opens up the possibility for participation by both technical and policy staff in standards implementation across the State sector.

The returning New Zealander noted that he enjoyed the convenience provided by the Internet and he wished that more services could have been transacted online. He used both traditional and electronic channels to apply for residency/work permits and citizenship for his family. However, he strongly preferred face-to-face contact when urgent attention was required:

"They've only got one operator on ... they just have one person answering questions and obviously there's communications issues with foreign students ... I know they've got an 0800 line you can ring, or you can go online to get questions answered but we had a specific question and we needed a specific answer very quickly so we had to go there ... It was on the Friday and she was flying out on the Sunday and if we needed to buy that visa there and then I had a passport, I was just going to say 'there's the money, there's the passport, please put one in there now' and so that way then I knew it was coming so she wouldn't get stuck." Returning New Zealander

For the small import business, the New Zealand Trade and Enterprise's biz services provided key information both for setting up the original roofing company and for making the transition to an import business. The company used the website www.business.govt.nz, the 0800 number and the printed material, some of which was supplied by the Inland Revenue. In addition to using a variety of channels to access information related to its business, the company also strongly preferred to contact individuals directly within the State Services (by telephone or in person) in order develop an ongoing relationship. This way, it could identify useful people as sources of information, familiarise itself with processes and avoid having to repeat a query on separate occasions.

"Biz info is bloody brilliant mate ... they have a booklet and all sorts of stuff too. I think they're in affiliation with IRD because IRD call up and either a) recommend or b) send out their booklets with their Smart Business Pack." Small business importer

If channel synchronisation is better meeting the needs of users, by 2010 a New Zealander will use online authentication services to check his medical records and entitlements for support or assistance, and then select a local health practitioner, based on attributes such as locality and reputation, and make an appointment with the one most suited to his needs. Following the physical visit and treatment, the health practitioner will receive an email alert that the prescription has been filled by a pharmacy, or if any subsequent treatment has been supplied. The client may also grant approval to other related providers, such as the hospitals he visits, to have access to this information.

Indicator 3
Providing the same information once

The research showed that limited progress had been made in using technology to share information and data across and within government agencies, while still observing privacy law. Ideally, users would provide information only once, rather than providing the same information to different government agencies.

Successful cross-sector work on grouping services at a single point of entry and channel synchronisation, such as www.business.govt.nz, usually implies a significant reduction in barriers to information-sharing among agencies in the back-office.

For instance, the Health sector groups are contributing to the development of the shared Health Practitioners Index. This is a common authoritative directory of health workers, facilities and organisations containing contact information, banking details and services provided, for access by any authorised health organisation across the sector.

Other cross-sectoral initiatives in the Health sector include a shared identity services capability, secure mail and a Health and Disability Information Exchange portal where practitioners will be able to lodge a single transaction that will route appropriate information to relevant health sector groups. Similarly, the National System Development Programme, a major ICT upgrade project for the Health sector, will also provide opportunities to reduce duplication.

The ongoing development of an all-of-government network infrastructure aims to provide a foundation for transformational improvement in service provision, by supporting information-sharing across agencies and, in turn, reducing the transaction burden on the end-user.

Key progress in developing this infrastructure was the launch of the Government Logon Service (GLS) and the approval of funding support for the development of the Identity Verification Service (IVS). These services will provide government agencies with a high level of confidence regarding the identity of the online user, place people in control of their transaction and protect their privacy.

The concept for the future development of the all-of-government authentication programme, which includes the GLS, was awarded a global 2007 IDDY (IDentity Deployment of the Year) Award in October 2007 by the Liberty Alliance.

State sector agencies are also progressively opting into the Government Shared Network (GSN) to take advantage of a high speed inter-agency network that enables them to share information securely and more cost effectively. Over time, participating agencies will also be able to use these interconnections to develop and deploy systems, allowing direct transactions between agencies and with trusted business partners.

Designed and built to the government's own standards, the consolidated use of a shared infrastructure across the public sector will reduce compliance costs by encouraging higher levels of integration and reducing the overall investment in, and the operational costs of, multiple systems across government, as suggested in the Expenditure Review of Government ICT Spending. Specifically, the GLS means agencies will not need to be involved in the management of and investment in ever-changing authentication technologies.

Similarly, the GSN will rationalise duplicated services across government and deliver a suite of secure services at a lower unit cost than that currently available to many agencies through existing supply arrangements.

The returning New Zealander discovered that applying for citizenship is a long process and felt that it involved providing the same information to the Department of Internal Affairs that had previously been submitted to New Zealand Immigration for residency and work permit applications.

"Again it was the case of having to prove who we are, what relationship we're in. The same paperwork really ..." Returning New Zealander

The small business importer used a proactive tactic to avoid repeatedly describing its situation to agencies. He did his best to find out the right questions to ask before contacting the agency. For instance, he felt that while the Inland Revenue is very effective, it only gives answers to specific questions.

"... if you get a new person you have to go through that same process again but I already talked to [name] about that, oh well [name] is on holiday at the moment or something and so what was your problem. ... Once you've got someone to make sure you can try and get back to them, to that person. Also, just keep talking to them and making sure that they understand that they are dealing with a human being and not a number and getting them to acknowledge that. You can do that you just have to have ... skill. ... They're a faceless bureaucrat and that's what they're trained to do for obvious reasons." "The biggest thing to running a business I think is being time efficient. ... By dealing with one person, by getting names, by getting numbers, by getting direct lines, you would be chopping down time, saving time. ... You have to be specific about what you want to know and they will specifically help you. If you ring up ... are they going to be like, huh what did you ring for again?" Small business importer

If information sharing is increasingly benefiting users, by 2010 a family of New Zealanders moving from Auckland to Palmerston North would only need to make one change of address notification. Records held by the ACC, Inland Revenue, the social/education/health systems will all be updated, including their drivers' licences and their dog ownership records in the Dogs Database. In addition, they would also be able to receive automated feeds (RSS) with news from a variety of agencies, including notifications about proposed consultations on issues that are of concern to them.

Where we are now

Technology is now well integrated into the delivery of government information, services and processes, signalling achievement of the 2007 milestone. Where technology may not be fully supporting delivery of services, there is extensive evidence of its use at the infrastructural level. Advances have clearly been made in using ICT for service delivery in some sectors.

However, there is room to improve information-sharing mechanisms among agencies and improve the design of services by taking user needs into account or incorporating direct user participation in the process, rather than taking a 'one-size-fits-all' approach. It is clear from the SSC's qualitative research that having to repeat information submitted to government remains prevalent.

Most of the service users interviewed use the online channel more for accessing information, rather than for transaction purposes. They continue to rely on face-to-face contact when their needs are complex. They are, however, enjoying the results of more effective and efficient service delivery aided by streamlined ICT processes. Examples include shorter waiting times at onsite offices, such as Work and Income and a reduction in onsite visits, for example direct referrals to an ACC case manager via the doctor.

These results reinforce the interdependent nature of the Development Goals. New Zealanders are increasingly using ICT to transact with government, the technology is evolving and more government information is available online. It will become increasingly necessary for government infrastructure to support the collaboration of agencies and their partners to deliver user-centred information and services to achieve joint results. New Zealanders' experiences of State Services will be transformed as online service delivery becomes more transactional and participatory, rather than informational.

PRIORITY ACTIONS To achieve this goal and the 2010 milestone, agencies need to ensure that: Systems and networks are integrated to support seamless delivery of services for New Zealanders Technology helps to address the barriers to sharing information among agencies by streamlining and minimising the collection of duplicate information Service delivery channels are designed to meet the expectations and needs of New Zealanders Business systems are able to provide a single view of a user's full range of interactions with given service providers. Enabling transformation: a strategy for e-government 2006, released by the Minister of State Services in November 2006, sets out the work programme through to 2010 for agencies to transform service delivery, enhance collaboration and increase engagement with New Zealanders. It details the activities to be undertaken by central and local government agencies, individually or in clusters, as well as all-of-government activities aimed at developing common standards or tools. This work programme supports the achievement of the Networked State Services goal.

Coordinated State Agencies

Development Goal: Coordinated State Agencies	Milestone achieved at June 2007	June 2010 milestone	June 2015 milestone
Ensure the total contribution of government agencies is greater than the sum of its parts	Government agencies demonstrating improvement through Managing for Outcomes, including joint outcomes and other shared accountabilities across clusters of agencies	Agencies work together towards jointly-defined outcomes in response to government priorities and increasingly achieve measurable results by sharing capabilities and using effective networks	New Zealanders gain tangible benefits from high performing and effectively-coordinated State agencies

What does achievement of this Development Goal mean?

The vision behind the Coordinated State Agencies goal is that government agencies will provide clear, joined-up responses to complex policy challenges, such as how to transform the economy and promote national identity.

State agencies will meet the evolving expectations of New Zealanders and retain their trust and confidence by providing seamless government services. Service duplication will be reduced for New Zealanders and work effectiveness improved for State servants because agencies understand what each other is doing and why. Through its agencies working effectively together, the government will deliver the right services to the people who need them, at the right time, regardless of which agency people have approached first.

Achieving the Coordinated State Agencies goal means New Zealanders will receive efficient delivery of effective services from State servants committed to working in a more unified State Services and sharing values and goals.

It means a shared understanding and good judgement about who needs to be involved to deliver well for New Zealanders. This understanding and judgement is used to work in an integrated and collaborative way, as appropriate, across and within a range of agencies, as well as with partners such as non-government organisations.

This integrated and collaborative way of working will be consistent from high-level strategy and policy development, to operational policy and service design, right through to service delivery. State servants will see the public management system supporting this way of working, and the performance gains resulting from it.

How we measure progress

Two indicators measure progress towards this goal:

Indicator 1
The extent to which behaviours exhibited by State servants support coordination in pursuit of results

Indicator 2
The extent to which systems support strategy, design and service delivery staff to work together.

During 2006/07, the SSC used information from its engagements with agencies to assess how well the State Services was progressing against these indicators. To supplement this information the SSC also undertook desk top research and some more detailed case studies. Behaviours supporting coordination were found to make the difference for the Coordinated State Agencies goal.

State servants demonstrating coordinating and collaborative behaviours can achieve results in spite of systems. However, coordinated results cannot be achieved without State servants adopting the behaviours that enable coordination.

Behaviours and systems tend to support coordination in combination. Rather than discussing progress against each indicator separately, this section reports progress toward the Coordinated State Agencies goal around four main themes:

Theme 1: Expanding an all-of-government culture

Theme 2: Finding evidence of deeper, more meaningful coordination and collaboration

Theme 3: Developing common language and understanding

Theme 4: Identifying key factors for successful coordination.

Progress

Theme 1: An all-of-government culture

The SSC found strong evidence that an all-of-government culture is developing in support of coordination. There are many areas of work that have contributed to this progress, some of which are discussed elsewhere in this report. To demonstrate the development of an all-of-government culture, we can point to:

- The Government's articulation of its priorities in March 2006, which sets expectations across the State Services and requires government agencies to build these priorities into their planning and performance:

1 Economic transformation - progress our economic transformation to a high income, knowledge-based market economy, which is innovative and creative and provides a unique quality of life for all New Zealanders

2 Families: young and old - all families have the support and choices they need to be secure and able to reach their full potential within our knowledge-based economy

3 National identity - all New Zealanders are able to take pride in who and what we are through our arts, culture, film, sports and music, our appreciation of our natural environment, our understanding of our history and our stance on international issues.

Since 2007 a focus on sustainability underpins these three themes.

All government departments are expected to take these themes into account in their planning and consider how their core business can be aligned to support Government priorities.

- The launch of the new Standards of Integrity and Conduct by the State Services Commissioner, effective from 30 November 2007. Whether State servants work in a Public Service department or in a Crown entity, they must act with a spirit of service for New Zealanders, and always meet high standards of integrity and conduct. Making these standards explicit helps build a shared understanding of the values required of the State Services.

- Sharing information between and among State servants as an aid for coordination has also progressed. Some of the tools being used support the deepening of an all- of-government culture, including:

• The Public Sector Intranet (PSI), which offers a single point through which all government employees can easily and securely collaborate, network and share work related information⁷. As at June 2007, 94 agencies had joined the PSI
• Shared workspaces hosted by the SSC. As at June 2007 there were 85 live workspaces with a membership of over 7400, an increase of about 50% since June 2006.

Taken together, such initiatives are building a collective sense among State servants. In turn, this will help to build behaviours that support coordination as State servants take an all-of-government view. As these initiatives are embedded and take hold within the State Services, it is expected that coordination will become the norm, rather than the exception.

Theme 2: Deeper, more meaningful coordination

As expected, the SSC found significant coordination between State agencies around traditional sector themes such as health, education or social development. Evidence shows that coordination across State agencies has become deeper and more meaningful, which has led to better results. Evidence also suggests that State agencies are coordinating more effectively with less traditional partners, and using innovative approaches to address complex issues. The sustainable economic development of the Auckland region described below is an example:

Auckland as an internationally competitive city is a key part of the Government's economic transformation agenda. Strengthening central government's ability to deliver on a joint economic transformation work programme for Auckland has, therefore, been a key focus for the chief executives whose agencies comprise the Government Urban and Economic Development Office (GUEDO), established in Auckland in 2005. Ministry of Economic Development (MED), supported by the State Services Commission, led a project to position GUEDO as a more collaborative, project-oriented network of agencies, better supported in Wellington. GUEDO is now operating under new governance and strengthened operational arrangements. The Department of Internal Affairs, Inland Revenue and the three central agencies (Treasury, SSC and the Department of the Prime Minister and Cabinet) have joined the four original members of GUEDO (MED, the Department of Labour, the Ministry of Transport and the Ministry for the Environment) as associate members, effective from the start of the 2007/08 financial year. will be complemented by the emerging joint social sector office that the Ministry of Social Development is working towards. This proposal envisages key social sector agencies establishing a joint office in Auckland to engage at the strategic level to better support and contribute to positive social outcomes for the region. The joint social sector office will support and promote sector-wide thinking and action for the Auckland region, both in relation to social services and matters of mutual interest with local government (such as the One Plan for Auckland) and the non-government sector.

Another example of deeper coordination is the Social Sector Forum, which brings together the lead chief executives from the Health, Education, Social Development and Justice sectors. This forum enables the chief executives to share information and experience with other sectors and has led to multi-agency operational initiatives being implemented.

Agencies are also doing more than just meeting and sharing information. They are developing ways and means of planning together, of prioritising their resources together, and of buying into the goals that each agency wishes to achieve. The three central agencies provide an example of such coordination.

The Treasury, the Department of the Prime Minister and Cabinet and the State Services Commission (the departments at the centre of government) have a key role in aligning the activities of the State sector with Government's goals and in making sure that Ministers receive the best possible advice before making decisions. The central agencies have agreed a joint outcome: 'A high-performing, trusted and accessible State sector, delivering the right things, in the right way, at the right prices'. They have deepened their commitment to achieving this outcome by coordinating their planning and prioritising joint activities. Through this collective process, the central agencies have identified two key areas for progress: leadership and support to progress difficult issues - these issues often cut across agency and sector boundaries, and agencies are either separately or collectively finding it difficult to get traction improving elements of the public management system where these can significantly assist Government to deliver on its priorities. Implementation of this work programme is supported by the chief executives of the three agencies, the central agency steering group and a small team of staff from the three agencies.

Theme 3: Common language and understanding

State agencies' leaders are working to develop common language, common approaches and common understanding about the outcomes expected of their own agencies and about joint outcomes shared with other agencies. Managing for Outcomes provides a basis for agencies to develop this shared understanding.

Managing for Outcomes is a results-focused, evidence-based performance framework that State agencies use to identify the strategy they intend to pursue to achieve results for New Zealanders. Border management is one example of how Managing for Outcomes has been used to improve coordination:

How New Zealand's border is managed is a critical shared interest for several State agencies. The New Zealand Customs Service is chairing a new initiative designed to ensure that border activities and services are delivered more effectively by border agencies. Customs is working closely with the Ministry of Agriculture and Forestry, the New Zealand Food Safety Authority, the Department of Labour (which provides immigration services) and the Ministry of Transport to develop a common understanding of border issues and identify new and more effective ways of working together. This initiative involves three work streams: developing a border sector strategic framework that defines the concepts of the border and border management and articulates a coherent border management strategy at the system level mapping border agencies' operational processes to identify and action opportunities for synergies, practical improvements and shared investments agreeing a common approach to optimise the integration and alignment of the Customs', the Department of Labour's and the Ministry of Agriculture and Forestry's IT systems, and apply this approach to current system development proposals.

Theme 4: Identifying factors for successful coordination

As part of its analysis, the SSC has identified the necessary factors for successful coordination. These factors can be grouped according to the three dimensions of mandate, systems and behaviours, as illustrated in the following diagram:

Mandate

For effective coordination, parties must work towards clearly defined and agreed joint outcomes; agency leaders must demonstrate commitment to these outcomes, reinforce the importance of effective coordination and prioritise the coordinated activity within an all-of-government context; and Ministers and other stakeholders must buy into the joint outcomes being pursued.

Systems

For effective coordination, appropriate and documented governance and accountability frameworks must be in place, with a written agreement - such as a memorandum of understanding - outlining the roles, responsibilities and contributions of each agency; sufficient and appropriate resources must be available to deliver the required tasks; and effective indicators to measure the progress and success of the activity from an established baseline must be agreed, with remedial action being taken when necessary.

Behaviours

For effective coordination, State servants need the right skills and competencies to work collaboratively; over time they must come to share common culture, language and values; and the culture of their respective organisations must support them to do so.

Moving forward, the SSC will promote and extend these success factors across the State Services to assist progress towards the Coordinated State Agencies goal.

Where we are now

There has been progress in both the behaviours exhibited by State servants and the systems used to support coordination. Managing for Outcomes thinking has improved as State agencies engage with non-traditional partners, building compelling performance stories and linking coordinated activities with the shared interest of achieving government priorities.

While the 2007 milestone has been achieved, more progress needs to be made in certain areas:

1 Agencies need to articulate their expected performance consistently. That is, they should be setting effective performance measures that demonstrate the links between outputs, impacts and outcomes. Better articulation will lead to stronger reporting of actual performance

2 Improvements are needed in engagements with Ministers so that there is better alignment between Ministerial priorities and agency shared interests

3 There needs to be more focus on those capability aspects that support coordination.

Central agencies will continue to support State agencies to improve their focus on, and alignment with, Ministerial priorities and to provide information demonstrating tangible results for New Zealanders. Significant advances expected closer to the 2010 milestone.

PRIORITY ACTIONS To achieve this goal and the 2010 milestone, agencies need to ensure: They improve the articulation of performance for coordinated activities, by developing appropriate performance measures and monitoring performance Their coordinated activity provides effectiveness and efficiency gains in achieving shared results They focus on developing skills and capabilities that support coordination They effectively engage with Ministers to understand Government priorities, and work with other agencies where there is a shared interest in achieving those priorities They contribute to creating an all-of-government culture through progressing the Development Goals for the State Services.

Accessible State Services

Development Goal: Accessible State Services	Milestone not fully achieved at June 20078	June 2010 milestone	June 2015 milestone
Enhance access, responsiveness and effectiveness, and improve New Zealanders' experience of State Services	No wrong door - any New Zealander accessing government services will be referred appropriately to the agency best able to address their concerns	New Zealanders say agencies are increasingly working with them to design and deliver services to meet their diverse needs	New Zealanders' experience of State Services is characterised by practice and personalised service delivery that meet their diverse circumstances

What does achievement of this Development Goal mean?

When New Zealanders approach a State servant they are treated fairly and in a spirit of service, and they receive information and services appropriate to their needs.

When accessing services New Zealanders can use a range of channels, for example, telephone, email, face-to-face, text, paper or online. Service delivery is personalised and tailored to meet the diverse needs, aspirations and capabilities of New Zealanders. State servants work together and with other partners to bring coordinated services to New Zealanders.

Those State servants whose role is to design services, capture New Zealanders' expectations and experiences to inform ongoing improvements. In this way, agencies increase their capacity to learn what works and what does not in terms of access to services, with the understanding that better access is more likely to make a difference for New Zealanders.

How we measure progress

Three indicators were developed to measure progress towards this goal:

Indicator 1
Accessible State Services: Target group uptake of services

Indicator 2
Responsive State Services: Appropriateness of referral

Indicator 3
Effective State Services: Users' experience and expectations inform service design and improvement.

During 2006/07 the SSC undertook qualitative research in Waitakere, Taranaki and Christchurch to determine the progress made.

Progress

Indicator 1
Accessible State Services: Target group uptake of services

This indicator shows the extent to which people are accessing the services for which they are eligible. In order to deliver on the outcomes sought by government, State Services agencies need to know not only who is 'knocking at the door', but also who is not reaching the door. Agencies need to know whether New Zealanders are accessing their entitlements and/or fulfilling their obligations.

Findings from the research indicate agencies are generally aware of the extent services are being accessed and processes are in place to identify those not accessing services. Access barriers remain for some groups, such as Māori and Pacific groups, as well as some refugees and migrants. Barriers remain for refugees and those admitted under the family reunification quota in particular, rather than for skilled migrants. Often these groups do not approach government services because of mistrust of authority, based on historical experiences or perceptions. Some also fear exposing their own non-compliant behaviour, where they are not fulfilling their obligations.

Agencies are generally aware about the barriers to accessing their services and have strategies and initiatives in place to reduce these barriers. However, what is missing is a more strategic approach to promoting awareness of government services, including increased use of ICT.

Agencies also need to work together more on the design of material and promotional campaigns to reach those needing, but not accessing, their services. One way would be to time campaigns so they do not overlap, or by combining relevant material in their communications.

A good example of using ICT and combining relevant material is the Ministry of Economic Development's 0800 contact centre number. This service can simultaneously help clients with Companies Office and Inland Revenue enquiries by using Inland Revenue's contact centre scripts.

The qualitative research highlighted the importance of intermediaries in helping people access information and services. Intermediaries often have in-depth knowledge of services, as well as strong and trusted links with different families and communities.

Indicator 2
Responsive State Services: Appropriateness of referrals

The June 2007 milestone of 'no wrong door' assumes that all New Zealanders accessing government services will be referred appropriately to the agency best able to address their concerns. This indicator recognises two points:

• New Zealanders may not know which agency provides the service they want
• Some New Zealanders may need to use services currently provided by several or many different agencies.

Where this happens, responsive State agencies will refer appropriately.

The most successful referrals appear to take place where there are well-trained, experienced staff, supported by an accessible and up-to-date knowledge management system. For those with complex needs, the best solution occurs when staff take responsibility for coordinating services, either within their own agency or with different agencies, to bring those services to the client.

Housing New Zealand Corporation (HNZC) provided one example of a woman relocating from one city to another with a special needs child needing multiple agency assistance. By going to Heartlands she was linked to a range of services, including a house from HNZC and a settlement grant from Work and Income. 'ARE you open?' report

Another example of coordination and collaboration happened in response to flooding in South Taranaki in 2004 and 2006. All the agencies came together and were located in one place, meaning the agencies brought the services to the people, instead of people having to go to the agencies. This was well received, as one farmer confirmed: "There were several different agencies that helped us, they were very good ... I thought we were generously looked after." Taranaki farmer

As there is evidence of a small number of inappropriate referrals of clients, the 2007 milestone has not been fully met. These inappropriate referrals were often made to intermediaries who were not always able to help people with complicated needs.

The South Taranaki District Council (STDC) identified a few cases of people being referred to it from a State Services agency for emergency housing, which the STDC does not provide. The STDC thought that if they had been phoned first the person would have been saved an unnecessary trip. 'ARE you open?' report

A number of intermediaries supported the wraparound concept of service delivery where one agency was responsible for the client's total package. As one intermediary explained:

"It would be better if we were dealing with one government department rather than three". 'ARE you open?' report

Many of these intermediaries favoured the Heartlands model or a similar local hub with all services located under one roof.

The qualitative research also identified some evidence of duplication of initiatives that focused on coordinating services. This service duplication has the potential to cause confusion for service users and other State servants, increasing the need for referrals.

Indicator 3
Effective State Services: Users' experience and expectations inform service design and improvement

The expectations and subsequent experiences of those using services are critical in designing services that are effective for them. This indicator looks at the extent to which agencies ensure users' experiences and expectations inform service design and improvement.

The SSC's qualitative research showed agencies understand that much of the knowledge necessary for improving services is held by communities or those using services, and mechanisms exist for capturing service users' experiences and expectations. The use of in-house and external client satisfaction surveys by the Department of Labour (DoL) is an example of how this knowledge is being acquired.

The DoL also undertakes surveys about the different access channels to identify the factors that influence people's preferences. These surveys allow the DoL to identify where, how and why it is doing well, as well as areas for improvement around client satisfaction and access to information.

However, this 'outside-in' information is not always systematically collected or valued by agencies. Some intermediaries reported that suggested improvements were not always acknowledged or acted on, with any action taken as a result of feedback rarely reported back to them. Similarly, client survey information was not always acted on by the agencies collecting it.

Several agencies mentioned the State Services Senior Leaders Development Conference (DevCon), the PSI and the SSC Leadership Forums as useful mechanisms for agencies to share 'outside-in' information and learning.

To facilitate sharing knowledge and to build on the Rotorua Pilot results, the SSC organised a Contact Centre Conference in August 2007. This focused on a strategic view of contact centre service delivery, using New Zealanders' points of view to inform future service design and improvements.

'Outside-in' measurement

As part of building a world class system of State Services, the SSC has adopted an international best practice approach to focus State servants' attention on what really matters for those using their services, as well as what not to focus on.

This included a survey to identify the key factors that drive New Zealanders' satisfaction with the quality of services they receive from public service organisations⁹. The Drivers Survey identified a set of six drivers that have the greatest impact on New Zealanders' overall satisfaction with the quality of service delivery. These are:

1 The service experience met your expectations

2 Staff were competent

3 Staff kept their promises

4 You were treated fairly

5 Your individual circumstances were taken into account

6 It's an example of good value for tax dollars spent.

This set of six drivers accounts for two-thirds (66%) of New Zealanders' satisfaction with service quality. The survey found that New Zealanders assigned different levels of importance to different drivers, as shown in the following chart.

These drivers have been used as the basis for designing a national survey, Kiwis Count, to quantify the presence of the drivers for New Zealanders in relation to a wide range of service experiences. The national survey results will be publicly available in March 2008.

In addition, the SSC has signed a licence with the Institute for Citizen-Centred Service, a not-for-profit Canadian corporation, for the use of the Common Measurements Tool (CMT). The CMT comprises a consistent set of questions and scales, including a set of core questions based on the drivers of satisfaction, which is available for State agencies to use when designing client satisfaction surveys.

By adopting this all-of-government tool, agencies are able to measure themselves against similar agencies and the national Kiwis Count survey, as well as benchmark their organisation internationally. The Canadian experience demonstrates that system-wide measurement tools and benchmarking facilitate greater shared learning between agencies.

Over time, the Kiwis Count survey and the CMT will allow the State Services to measure the service improvements being made by taking action on the 'outside-in' point of view. We will be able to make improvements because we will know the key things we need to focus on, and the things that are not important to New Zealanders. The SSC is encouraging service delivery agencies to use the CMT.

Where we are now

Agencies are committed to improving access for all New Zealanders and recognise that service delivery needs to be designed from an understanding of the different perspectives, capabilities and expectations of the users, rather than agency perspectives, convenience, or structures.

Agencies are increasingly moving from 'inside-out' to 'outside-in' service delivery. They are personalising and tailoring services to ensure more culturally appropriate, widely available and responsive delivery. However, there is still room for improvement.

Agencies are also increasingly working in coordinated ways to reduce the need to refer users between different services and these arrangements are characterised by genuine commitment from agency staff. However, there is still a way to go to increase the effectiveness of such arrangements and making coordinated working integral to the State Services culture will require a significant shift in the thinking and behaviours of all State servants. In addition, agencies need to install systems and processes to support appropriate behaviours, rather than relying on the commitment of individual staff members.

There is also a trend toward working with non-government organisations. These organisations often have the people with an in-depth knowledge of a range of related services, as well as strong and trusted links into different families and communities. It is important that agencies continue to build relationships with intermediaries and community organisations to make the best use of these strengths.

The Accessible State Services goal is linked to the other goals, in particular the Excellent State Servants, Networked State Services and Coordinated State Agencies goals. For the Excellent State Servants goal, this includes agencies recruiting and developing staff with:

• a spirit of service
• the capabilities to build effective networks, including strong teamwork; influencing and negotiating skills; leadership and the ability to connect and integrate different approaches and viewpoints; and
• using a systematic approach to staff training.

The behaviours of staff are critical to the quality of New Zealanders' experience of State Services. Analysis of the Drivers Survey open-ended responses indicated that, where the service user was dissatisfied with their service experience, the suggested improvement was generally around the competence and attitude of the staff member they encountered. The drivers of satisfaction are largely behavioural (staff were competent, kept their promises and treated people fairly).

The Coordinated State Agencies and Networked State Services goals encourage agencies to establish systems and processes so the service quality received by clients is not wholly dependent on the capabilities of responding staff members. To realise the Accessible State Services goal will require achievement in all these goal areas.

PRIORITY ACTIONS To achieve this goal and the 2010 milestone, agencies need to: Take a strategic approach to promoting awareness of government services, including: increasing use of information and communications technology aligning and coordinating promotion campaigns avoiding re-branding initiatives Seek systematic feedback from different communities of interest10 to inform the design and improvement of more personalised services that meet the diverse needs of New Zealanders (including uptake of the Common Measurements Tool), and implement a feedback loop to inform New Zealanders of action taken on suggestions or complaints received Take action on Kiwis Count and the Common Measurements Tool results by focusing resources on the key factors that are important for designing and improving service delivery Join communities of practice to support those managers responsible for service delivery design and improvement, who will be acting on the results of 'outside-in' research and feedback Continue developing shared networks and/or workspaces for sharing knowledge of user experiences and best practice in addressing user needs Build on opportunities for co-location and collaboration, including with intermediaries, in order to deal with the client's set of needs or life event. Where appropriate, staff members will arrange interviews with other agencies on behalf of clients, or bring other agencies together to wrap services around clients.

Trusted State Services

Development Goal: Trusted State Services	Milestone achieved at June 2007	June 2010 milestone	June 2015 milestone
Strengthen trust in the State Services, and reinforce the spirit of service	Agencies of the State Services demonstrate their commitment to earning trust by working with the State Services Commissioner to develop and promote codes of conduct	Agencies have in place the elements essential to support State servants' trustworthy behaviour	New Zealanders increasingly trust State servants to act with integrity

What does achievement of this Development Goal mean?

New Zealanders have confidence in the people, systems and processes of the State Services and the way services are delivered. They trust that agencies will deliver the services they need to go about their lives.

State servants appreciate that trust is hard won; it is easy to erode and difficult to re-establish. They recognise the intrinsic value of integrity and are sincere in ensuring it is reflected in their behaviour. State servants are, and are seen to be, responsible stewards of the State's powers and resources in serving the community.

It is a point of pride to be part of a trusted State Services, with a strong spirit of service to the public.

How we measure progress

Trust operates from two perspectives - from the 'inside-out' and the 'outside-in'. The two indicators for the Trusted State Services goal reflect these perspectives:

Indicator 1
Trustworthiness exhibited by State servants

Indicator 2
The extent of New Zealanders' confidence in the integrity of State servants when delivering services.

The 'inside-out' approach refers to the State Services and its employees exhibiting trustworthy behaviour to New Zealanders. For trustworthiness to be fully demonstrated, agencies must put in place the six elements that support integrity and ethical behaviour. International research suggests all six elements are essential and focusing only on some may increase the likelihood of untrustworthy behaviour.

The six elements are:

• agencies of the State Services have standards of integrity and conduct that meet the State Services Commissioner's minimum standards
• agencies of the State Services promote their standards of integrity and conduct
• standards of integrity and conduct are integrated into the behaviour of State servants
• managers model the standards of integrity and conduct in their behaviour
• consequences for behaviour that breaches the standards of integrity and conduct are known by State servants
• agencies act decisively when breaches occur.

In contrast, the 'outside-in' perspective refers to New Zealanders using services and recognises that New Zealanders need to have confidence and trust in the State Services, its employees and the services it delivers.

Where people lose trust in government they do not seek the help they are entitled to, do not provide information necessary for delivering effective services, resist paying tax and increasingly resent the State Services.

A perceived integrity failure in one part of government can impact negatively on opinions about the State Services as a whole. It is important to understand the extent of New Zealanders' trust in the integrity of State servants and the factors influencing this trust and to seek to increase this over time.

During 2006/07, the SSC undertook research to gain a better understanding of the factors that influence New Zealanders' confidence in the integrity of State servants when delivering services. The Drivers Survey identified the factors, or drivers, of New Zealanders' trust in public service organisations and the drivers of satisfaction with service quality.

Progress

Indicator 1: Trustworthiness exhibited by State servants

In 2007 the SSC undertook the New Zealand State Services Integrity and Conduct Survey to measure the trustworthiness of State servants. Progress for this indicator has been assessed by relating the findings from this survey to the six elements that support integrity and ethical behaviour in the workplace.

The overall findings from the survey are positive and in line with the high regard for the New Zealand public sector shown by international surveys of corruption. Almost all State servants reported that their agencies have written standards of integrity and conduct.

While many agencies have a focus on integrity, there is room for improvement under all six elements essential to supporting trustworthy behaviour. There is a continuing need to promote standards of integrity and conduct. More must be done to integrate these standards into State servants' behaviour. The survey identified the role of senior managers in communicating the importance of integrity and modelling good behaviour as a particular area for improvement. When senior managers are explicit in promoting a strong ethical culture, they motivate their staff to act with integrity. Agencies must act decisively when breaches of standards occur and State servants must be clear about the consequences of breaching standards.

The 2010 milestone for the Trusted State Services goal reinforces the importance of the six elements, stating that agencies will have the elements essential to supporting State servants' trustworthy behaviour in place by this time.

The survey will be conducted every two years to provide a comparison with the 2007 benchmark.

Indicator 2: The extent of New Zealanders' confidence in the integrity of State servants when delivering services

The New Zealand public sector continues to be regarded as one of the most honest and transparent in the world. This view has been validated by the Transparency International Corruption Perceptions Survey and the Gallup Worldwide Corruption Index. However, while the international comparisons are gratifying, they are very broad in nature.

The Drivers Survey measured New Zealanders' overall perceptions of trust in public services. Findings indicate that a positive service experience for New Zealanders does not necessarily translate into increased perceptions of trust in public services. New Zealanders have average levels of trust in public services, but significantly higher levels of trust when basing their ratings on an actual service experience.

The survey identified a set of five drivers of trust in public services:

1 You have confidence that public servants do a good job

2 The public service provides services that meet your needs

3 Public servants treat people fairly

4 The public service keeps its promises - that is, it does what it says it will do

5 The public service admits responsibility when it makes mistakes.

These drivers have been used in a national survey, Kiwis Count, to quantify the presence of drivers for New Zealanders in relation to a wide range of service experiences. The survey results will be publicly available in March 2008.

Information on these drivers will help agencies design and deliver services that strengthen trust in the State Services.

Where we are now

During 2006/2007, agencies met the June 2007 milestone by working with the State Services Commissioner to develop Standards of Integrity and Conduct¹¹. This code of conduct applies to approximately 110,000 employees across the State Services from 30 November 2007. It provides a unifying sense of the values sought by the Review of the Centre in 2001 by building a shared commitment to a trusted State Services across organisations with widely varying functions.

The code was developed in consultation with agencies of the State Services - Public Service departments and Crown entities within the State Services Commissioner's mandate¹². The consultation process included meetings with agencies, chief executives, board chairs, unions and delegates, professional bodies, focus groups consisting of State servants and members of the public, and groups encompassing a range of ethnic perspectives.

The Commissioner has emphasised the importance of implementation throughout the code's development. The SSC, in conjunction with State agencies, has developed resources to support implementation and encourage the code's promotion. One resource is a task checklist built around the six elements essential to supporting trustworthy behaviour.

The code provides agencies with an opportunity to refocus on the behaviour required of State servants, the provisions in place to support integrity, the importance of integrity in everything we do and the way we demonstrate the spirit of service to the public.

The overwhelming majority of State servants act ethically and serve the public honestly and with integrity. We can be proud of that but must never be complacent.

The State Services needs a continuing focus on how it works and affects New Zealanders, if it is to keep earning their trust. The first five Development Goals build towards the sixth goal, Trusted State Services - strengthen trust in the State Services, and reinforce the spirit of service.

Standards of Integrity and Conduct provide the basis for ongoing trust in the State Services. It also protects staff by setting clear expectations so that all staff know their obligations and the behaviour required of them.

PRIORITY ACTIONS To achieve this goal and the 2010 milestone, agencies need to: Give effect to Standards of Integrity and Conduct by maintaining policies and keeping procedures consistent with that code of conduct Ensure the six elements that support integrity and ethical behaviour are in place Develop and implement integrity training programmes that are consistent, genuine and relevant to the needs of State servants. Training programmes should explain the agency's policies and procedures, help State servants handle situations where misconduct might occur and explain how they can get advice about integrity and conduct issues Encourage senior managers to frequently communicate the importance of integrity and model good behaviour to their employees. When senior managers are explicit in promoting a strong ethical culture, they motivate their staff to act with integrity, they foster trust, and they create positive perceptions about their leadership Ensure that their employees know how to make a confidential complaint of misconduct or 'serious wrongdoing'. It is obligatory for agencies to have a protected disclosures policy Maintain the privacy and confidentiality of everyone involved when resolving misconduct, while ensuring learning from the experience is shared with others.

Priority actions for State Services agencies

The following diagram summarises the priority actions in order for State Services agencies to achieve the Development Goals and the 2010 milestones and indicates the interdependence of these actions across the six Development Goals. For further information on these actions see the relevant goal section of the report, as listed down the right hand margin.

Please note that the diagram includes the merged Employer of Choice goal and the new Value-for-Money State Services goal. These goals are detailed in Part 2, 'Preparing for the future'.

(This diagram of priority actions for State Services agencies can be printed and retained for easy reference. (PDF 121.2k)

The new Development Goals framework

This attached diagram (PDF 105.8k) can be printed and retained for quick reference.

³ Gerry McGovern, www.gerrymcgovern.com, is an international commentator on managing web content as a business asset.

⁴ See the following section 'Excellent State Servants' for more information on the Lominger competency model.

⁵ In this report, 'needs' means needs as defined by current legislation, regulation and government policy.

⁶ An 'intermediary' is an organisation that acts between an individual or business and a State Services agency.

⁷ The Public Sector Intranet (PSI) is currently available to State sector employees.

⁸ As there is research evidence of a small number of inappropriate referrals of clients by State agencies, the 2007 milestone has not been fully met. See 'Appropriateness of referrals' later in this section.

⁹ The term 'public service' was used in the survey as previous research indicated this is the term most commonly used by New Zealanders when describing State Services^.

¹⁰ A 'community of interest' is a community of people who share a common interest or aspiration. Examples include families, iwi, hapū and whānau, local communities, non-government organisations and businesses.

¹¹ A code of conduct issued by the State Services Commissioner under the State Sector Act 1988, Section 57.

¹² State Sector Act 1988, Section 57.