- Title page
- Chapter 1: Introduction
- Chapter 2: Recruitment of Members for Boards and Bodies
- Chapter 3: Appointment of Members for Boards and Bodies
- Chapter 4: Removal from Office
- Chapter 5: Induction for Appointees
- Chapter 6: In Support of Board Performance
- Annex: Background for all statutory Crown entity appointments
Chapter 5: Induction for Appointees
What induction should aim to achieve
Induction should start as soon as a board member’s appointment takes effect. A well-designed induction programme is essential to helping new members contribute confidently to their work on the board. But all board members should receive ongoing support and information so they can develop their understanding of the total environment within which they work.
Operating within the ‘Crown environment’ has distinct differences from a commercial or community setting (for instance, all Crown entities, except the Independent Police Conduct Authority, are subject to the provisions of the Official Information Act 1982).
As well as understanding the specific objectives of the board, members should have a proper appreciation of the particular elements and demands of public sector governance, and of the key relationships that will impact on the successful performance of their role.
The State Services Commission has developed a comprehensive and authoritative package of induction material. The primary audience for the induction material is new board members of statutory Crown entities, but it may also be helpful for existing board members and/or for other types of entities. Entities and monitoring departments are encouraged to make free use of the material in full or in part to supplement their current induction programmes: www.ssc.govt.nz/crown-entity-induction-material.
Responsibility for induction and training
Ministers are responsible for ensuring that new board members have an adequate induction and training in order to understand their role and any expectations the Crown might have of them. In practice, Ministers usually delegate this role to their departments, in consultation with the board.
Ministers are likely to want to take a more active role in working with newly-appointed board chairs, to ensure they are aware of the Crown’s expectations for the board and that the key responsibilities and relationships are well understood.
Chairs should brief new board members on the particular environment within which the board operates. Depending on what already has been covered, the chair’s briefing could include the nature of the entity’s business (site visits may be useful), the composition of the board and its various procedures (sub-committees, expected workload, governance and management issues, etc), the member’s responsibilities to the chair and other board members, and relationships with the Minister.
In some cases, responsibility for training new members is specified in legislation, e.g. the New Zealand Public Health and Disability Act 2000 requires District Health Boards to ensure new board members have appropriate training.
Any induction of board members by the monitoring department should be undertaken in consultation with the chair of the board.
At the earliest opportunity, departments should provide new board members with an introductory briefing on the Crown entity environment and the expectations of Ministers. They also should consider covering:
the role of boards in the State sector context; ensuring compliance with the law, and with accountability documents and relevant Crown expectations
the strategic direction for the sector and the entity itself, and any areas of particular sensitivity or high risk
the various planning and public accountability processes
the ongoing management of any perceived, actual or potential conflicts, and the board’s policies towards receiving and offering gifts and hospitality
the individual roles and duties of board members
the collective duties of board members
the roles of and relationships between the key offices and agencies
maintaining appropriate relationships with Ministers, Parliament, the monitoring department and the public
liability for and protection from legal proceedings.
Creating an effective induction programme
An effective induction programme will include:
a meeting with the Minister at his/her discretion
meetings with the board chair to discuss board protocols and the board governance manual
meetings with the chief executive and staff for operational familiarisation
comprehensive information on the activities of the board or body and the organisation concerned, an outline of the sector, the wider implications of operating within the State Services, and the nature and key points of the key documents such as the Crown Entities Act, any specific enabling legislation, the Output Agreement and/or Memorandum of Understanding and/or the Statement of Intent, or Deeds of Trust
current budget, recent annual reports and board minutes, all relevant legislation, planning documents (e.g. Statement of Intent), key challenges and issues, the role of central agencies, delegated authorities, policies on disclosing interests and declaring gifts, meeting timetable and venues, staff structure
the key relationships affecting the successful performance of the board
the impact on the operations of the board and the entity of provisions such as the Official Information Act 1982, and the obligations and protections relating to appearance by staff or board members before a Parliamentary Select Committee (www.ssc.govt.nz/officials-and-select-committees-2007)
a tour of relevant facilities, if appropriate.
Some departments take a combined approach with workshops or seminars for new appointees from a range of boards for which their Ministers are responsible; this can help to underline the importance of a sector-wide approach. Existing board members also could be invited. Development workshops offered by the board, monitoring department, central agencies or an external body, may be other useful steps to assist new members, together with the use of formal or informal mentors.6
6: See also the CabGuide section on making appointmens: www.cabguide.cabinetoffice.govt.nz/procedures/appointments/making-appointments.