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Document Control Project ID/Name Government Enterprise Architecture of New Zealand

Author Jim Clendon

Title GEA-NZ v3.2 Business Reference Taxonomy

Document Classification: UNCLASSIFIED

Document Approval

Department of Internal Affairs

The GEA-NZ Business Reference Taxonomy is approved by Government Enterprise Architecture Group (GEAG) and Government Enterprise Architect, System Transformation, Service and System Transformation in-line with AoG policy, supporting the Government Chief Technology Officer (GCTO) and the Government Chief Information Officer (GCIO), Department of Internal Affairs, New Zealand.

Contact us: Enquiries regarding this document are welcome to Email: [email protected]

Acknowledgements

The GEA-NZ v3.2 Business Reference Taxonomy was developed by the Government Enterprise Architecture, System Transformation, Service and System Transformation, supporting the Government Chief Technology Officer (GCTO) and the Government Chief Information Officer (GCIO), Department of Internal Affairs, New Zealand.

Produced by Government Enterprise Architecture

January 2018

Government Business Capability Model

Version 2.1

Government Enterprise Architecture of New Zealand

mailto:[email protected]


Document Control Project ID/Name Government Business Capability Model

Author Regine Deleu

Title Government Business Capability Model

Document Classification: UNCLASSIFIED

Document Approval

Department of Internal Affairs The Government Business Capability Model is approved by Government Enterprise Architecture Group (GEAG) and Government Enterprise Architect, System Transformation, Service and System Transformation in-line with AoG policy, supporting the Government Chief Technology Officer (GCTO) and the Government Chief Information Officer (GCIO), Department of Internal Affairs, New Zealand.

Contact us: Enquiries regarding this document are welcome to Email: [email protected]

Acknowledgements The Government Business Capability Model was developed by the Government Enterprise Architecture, System Transformation, Service and System Transformation, supporting the Government Chief Technology Officer (GCTO) and the Government Chief Digital Officer (GCDO), Department of Internal Affairs, New Zealand.

The feedback and suggestions received from a number of experts from various agencies, and the collaboration working sessions, were greatly appreciated.

Purpose This document describes an All-of-Government business capability model for defining and assessing the capabilities and maturity of agencies or government entities.

The Government Capability Model is a key deliverable of the NZ Government Strategic to develop public sector capabilities. The model provides a common foundation for identifying capabilities, collaborating, and creating new capabilities. It supports:

• The Government ICT Action Plan refresh 2014

• The Government ICT Strategy refresh 2015

• Better Public Services Result Areas

Crown copyright ©. This copyright work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. In essence, you are free to copy and adopt the work, as long as you attribute the work to the Department of Internal Affairs. You must also give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use. If you remix, transform, or build upon the material, you may not distribute the modified material. You may not use the original material for commercial purposes. You also agree to abide by the other licence terms. To view a copy of this licence, visit http://creativecommons.org/licenses/by-nd/4.0/. Please note that neither the Department of Internal Affairs emblem nor the New Zealand Government logo may be used in any way which infringes any provision of the Flags, Emblems, and Names Protection Act 1981 or would infringe such provision if the relevant use occurred within New Zealand. Attribution to the Department of Internal Affairs should be in written form and not by reproduction of the Department of Internal Affairs emblem or New Zealand Government logo.

mailto:[email protected]

http://creativecommons.org/licenses/by-nd/4.0/

http://www.legislation.govt.nz/act/public/1981/0047/latest/whole.html#dlm52216


Revision history Version Date Comment Modified by

0.2 October 2015 DRAFT Regine Deleu

0.3 November 2015 After a review period (22/10-9/11) SST teams as well as GEAG members have commented on this piece of work. The changes made after consolidating the comments are:

Start with the description of ‘Capability’ and add examples to Common and Shared capabilities.

Added Change Management Capability at the highest level

Made the description of Generic Enterprise Capabilities less government focussed.

Corrected syntax errors.

Moved the high level “GGC – Legislation and Regulation Enforcement” into “GGC – Legislation and Policy Development” and moved the sub-capabilities into “Government Customer-Centric Services”

Regine Deleu

1.0 November 2015 Approved by the Government Enterprise Architect Group - GEAG Regine Deleu

1.1 February 2016 Requested changes to the overall model: - Changed the Capability Definition paragraph to be aligned with the “Capability within New Zealand Government” document - Change to the Capability Principles:

o They are the building blocks of the business. o They represent stable business functions. o They should be self-contained. o They are abstractions of the organisation. o They capture the business’ interests and will not be decomposed beyond the level at which they are useful. o They are the “what?” and “why?” not the “how?”, “who?”, or “where” o At the highest level they roll up more detailed views. o Capabilities should be categorised using GEA-NZ v3+ reference taxonomies.

- Name change: “Sector / Multi Agency Shared Capabilities” to ”Sector and Multi Agency Capabilities”. Removed ‘Shared” because not all of those capabilities can or will be shared.

- Name change: “Generic Enterprise Capabilities” to “Enterprise Capabilities”. Removed “Generic” because Enterprise Capabilities (in this context) are always generic.

- Added the references to the Enterprise Capabilities as an appendix.

Regine Deleu Jim Clendon

2.0 July 2017 - Changed title, adding ‘Business’ and changed diagram. - Mapped onto GEA-NZ v3.2 - Added Appendix B - Mapping Examples - Added Appendix C - Generic Business Capability Maturity Model

Regine Deleu

2.1 January 2018 Added examples of business capabilities mapping visualisation Regine Deleu

Published by the Department of Internal Affairs www.ict.govt.nz

http://www.ict.govt.nz/


Table of Content Document Control .................................................................................................................................................................................................................................................................................... 1

Capability Definition ................................................................................................................................................................................................................................................................................. 5

Government Business Capabilities ............................................................................................................................................................................................................................................................ 6

Capabilities and GEA-NZ v3+ .......................................................................................................................................................................................................................................................................... 7

Other Definitions ............................................................................................................................................................................................................................................................................................ 8

Business Capability Principles....................................................................................................................................................................................................................................................................... 10

Enterprise Business Capabilities ............................................................................................................................................................................................................................................................. 12

EC01 - Strategy and Planning ....................................................................................................................................................................................................................................................................... 12

EC02 - Change Management ........................................................................................................................................................................................................................................................................ 15

EC03 - Financial Management ...................................................................................................................................................................................................................................................................... 17

EC04 - Enterprise Risk Management ............................................................................................................................................................................................................................................................ 20

EC05 - Communications ............................................................................................................................................................................................................................................................................... 25

EC06 - ICT Management ............................................................................................................................................................................................................................................................................... 28

EC07 - Information and Knowledge Management ....................................................................................................................................................................................................................................... 30

EC08 - Relationship Management ................................................................................................................................................................................................................................................................ 34

EC09 - Procurement ..................................................................................................................................................................................................................................................................................... 38

EC10 - Human Resource Management ......................................................................................................................................................................................................................................................... 40

Generic Government Business Capabilities ............................................................................................................................................................................................................................................. 42

GGC01 - Legislation and Policy Development .............................................................................................................................................................................................................................................. 42

GGC02 - Government Customer-Centric Service.......................................................................................................................................................................................................................................... 44

GGC03 - Government Analytics .................................................................................................................................................................................................................................................................... 47

Behaviour Capabilities ............................................................................................................................................................................................................................................................................ 49

Competency Capabilities ........................................................................................................................................................................................................................................................................ 55

Appendix A - References ........................................................................................................................................................................................................................................................................ 56

Appendix B – Mapping Examples ............................................................................................................................................................................................................................................................ 57

Appendix C – Generic Business Capability Maturity Model ..................................................................................................................................................................................................................... 63

Appendix D – Business Capability Visualisation Examples ....................................................................................................................................................................................................................... 66


Capability Definition The Capability

1 concept, as used in this document, is a top down view of an organisation; in this case a NZ Government organisation. It looks at the major components of an organisation in a holistic manner that

includes people, processes, information, and technology. It is the “what” and “why”, not the “how”, “who”, or “where”.

The definition used for capability in the ICT Action Plan 2014 is: “A capability is what an organisation needs to deliver its business strategy and achieve its outcomes. Capabilities encompass people (competencies), processes, information, and technology.”

The Open Group Capability Based Planning White Paper has the following definition which we find helpful; “A capability is a measurable capacity to employ resources to achieve desired outcomes or goals within a specified context.”

It is the specified context which makes the Capability concept so useful and flexible. We can use it to define areas of interest that directly support the strategic and tactical goals and objectives of the organisation.

For the purpose of this document, when we use the term capability (shown in italics), we mean “business capability” which is commonly used in Enterprise Architecture (EA)2 practice. An example: The term “enterprise capability” should be understood to be “enterprise business capability”.

A “business capability” defines the organisation’s capacity to successfully perform a unique business activity. The “business capability” is high level and assumed to include people, process, information, and

technology capabilities. This is shown in Figure 1 below. The EA term “business capability” can be used interchangeably with the term “organisational capability”3

.

Figure 1

The workforce strategy work being led by the State Services Commission is an example of a specific context that limits the scope to focus on people / workforce capability. In order to implement this strategy, and realise the goals and outcomes needed, it is expected the Human Resources Enterprise Capability will be affected. In turn, changes to the people / workforce capability impact multiple business capabilities all of which have people / workforce as a component.

1

Capability in the State Services Commission (SSC) Workforce Strategy 7C Framework is defined as: Workforce capability refers to the mix of people knowledge, skills, attributes and behaviours the organisation requires to deliver its business results.

2 The Enterprise Architecture Capability is the Enterprise’s ability to develop, maintain, and evolve an architecture, and use that architecture to govern change activity in the enterprise. Reference: Real-world EA: A leader’s Approach to Establishing and Evolving an EA Capability, A White Paper published by the Open Group.

3 Organisational Capability is a term used State Services Commission (SSC) Workforce Strategy 7C Framework.


Government Business Capabilities


Government Enterprise Architecture team has been tasked with defining a set of government capabilities. The Government Business Capability Model includes the capabilities that are realised multiple times across government. It has four business, two people, and two external capability dimensions. These capabilities all support the business processes of a government entity.

Business Capability dimensions:

Business Capability is the capacity, materials, and expertise which an organization needs in order to perform core functions.

The Business Capability dimensions are: o Enterprise Business Capabilities – business capabilities which are needed for any organisation whether it is a corporation, government, non-government, or not-for-profit corporations. o Generic Business Government Capabilities – business capabilities which are needed for a government entity. o Sector and Multi-Agency Business Capabilities – business capabilities which are common between agencies within a sector (Health, Education, etc.) or between multiple agencies, such as

grant management. o Agency Specific Business Capabilities

People Capability dimensions:

People Capability clearly defines behavioural and competency expectations that people need to have to represent the set of attributes that underpin the business.

External Capability dimensions:

Customer Capability is the capability a customer needs to have to be able to interact with the Government.

Supplier Capability is the capability a supplier needs to have to be able to interact with the Government.

Each capability will have its:

Sub-capabilities and descriptions

Resource requirements mapped to GEA-NZ v3+

Specific outcomes - An outcome is a specific, vital, positive organizational or environmental change that moves the organisation forward to its desired future. The outcome must be based on identified issues and they must provide the basis for developing strategies to achieve the outcome. The outcome indicates the direction of change desired (increase, decrease, maintain).

For each capability there will be a mapping to the GEA-NZ v3+ Business, Application and ICT Services, and Data and Information Reference Models.

This will form the basis of future roadmaps of increments to close the gap between the current capabilities and the future capabilities. The roadmaps will include a range of shared capabilities on a continuum from shared standards and communities of practice right through to a single instance of a capability that is shared and used across government.

Capabilities and GEA-NZ v3+ Areas where GEA-NZ v3+ improves:

A clear recognition of different types of capabilities within government

o Business Capabilities

o Application and Software Service Capabilities

o Data and Information Capabilities

o Infrastructure Capabilities

o People Capabilities

A clear delineation between government capabilities and subsets of those capabilities which can be shared or common capabilities as per the common capability continuum, and the roadmap of actions to address gaps.

Capability is a viewpoint through the dimensions of GEA-NZ and covers all the aspects.

Note: Example of mapping business capabilities with GEA-NZ v3+ are found in the appendix of this document.


Other Definitions

Capability Gap A capability gap is the difference between the current capability and what the stakeholders want the capability to be. Once the gap has been agreed and defined options can be explored to close the capability gap.

For example the Minister of Finance at the 2015 SAS Conference expressed the need for evidence based policy advice and the importance of advanced analytics. So potentially there is a gap in the current capability to “Provide advice” and this gap could be made clear by defining a target capability of “Provide advice based on evidence”. In some cases the gap may be so big that we show that we need a completely new capability in place of a current capability.

Capability Increment A capability increment is the result of some action taken to improve a capability. There may be a number of capability increments needed to get from the current capability to the desired capability.

Capability Segment A capability segment is a high level grouping of capabilities into:

Strategy

Management

Development

Operations

Strategy Segment

Each capability needs a strategic segment. The key benefits of a strategy segments are:

have clarity, focus and direction for the capability,

gives drive for high performance of the capability,

gives an understanding of the current state of the capability,

have an agreement on the longer term future of the capability,

identifies the key steps needed to achieve the strategic outcomes of the capability.

Management Segment

Each capability is managed it its own way. The management sub-capabilities of the Management segment align the capability planning, its performance and its resources with that of the organisation’s strategic goals and objectives. The management sub-capabilities create clearly defined and achievable goals. It also makes sure processes are in place to deal with failure or incidents and take corrective action against underperformance (governance).

Development Segment

The sub-capabilities of the Development Segment are around designing and building the capability.

Operations Segment

And the sub-capabilities of the Operations Segment are around the operational part of the capability, like operate, promote, deliver, fix, and charge.


Plan Governance Performance

Strategy and Planning Strategic Roadmap Development Corporate Governance Business Performance Management

Outcome Management

Change Management Transformation Planning Transformation Governance

Change Resistance Management

Benefit Management

Change Readiness Assessment

Financial Management Financial Forecasting and Planning Financial Governance Financial Control

Financial Auditing

Enterprise Risk

Management

Risk Improve Effectiveness Planning

Risk Mitigation Planning

Business Continuity Planning

Risk Management Governance Risk Intervention Monitoring

Security Control

Mitigation Improvement Management

Communications Internal Communication Planning

External Communication Planning

Communication Governance Communication KPI Management

ICT Management ICT Planning

ICT Change Management

ICT Governance ICT Performance Management

Technology Benchmarking

Information and

Knowledge Management

Information and Knowledge Planning Data and Information Governance Knowledge Mapping

Expert Directory Management

Lessons Learned

Best Practice Transfer

Relationship

Management

Stakeholder Engagement Planning Stakeholder Engagement Governance Customer Experience Management

Stakeholder Satisfaction Management

Service Level Agreement Management

Procurement Procurement Forecasting and Planning Procurement Governance Procurement KPI Management

Human Resource

Management

Resource Forecasting and Planning Human Resource Governance Human Resource KPI Management

Selection Criteria Management

Staff Training Criteria Management

Legislation and Policy

Development

Legislation and Policy Development

Planning

Legislation and policy Development

Governance

Legislation and policy Development KPI

Management

Government Customer-

Centric Service

Customer-Centric Service Planning

Collaboration Planning

Customer-Centric Service Governance

Collaborative Governance

Customer satisfaction and measurements

Government Analytics Government Analytics Planning Government Analytics Governance Government Analytics KPI Management Continuous Government Analytics Improvement

Government Analytics Reporting

Government Analytics Strategy Development

Knowledge Protocol Development

Public Relations Development

Event Development

Communication Design

Sourcing and Collaboration Development

Policy Research

Semantic Analysis

Government Analytics Design and

Development

Policy Advice

Legislation Dissemination

Legislation and Policy Enforcement

Stakeholder Engagement Development

Legislation and Policy Strategic Direction

Information and Knowledge Strategy Development

ICT Strategy Development ICT Service Design and Development

ICT Service Transition

Recruitment and Skill Management Strategy

Development

Generic Government Capabilities (GGC)

Customer-Centric Strategy Development

Product and Service Strategy Development

Strategy Management Development Operations

Financial Operations

Design and Build Operate, Promote, Deliver, Fix, and ChargeVision and Objectives

Business Strategy Development

Financial Strategy Development

Programme and Project Management

Requirements Management

Change Communication

Change Coaching and Training

Enterprise Capabilities (EC)

Transformation Strategy Development

Change Sponsorship

Product and Service Delivery

Customer Service Delivery

Strategic Risk Assessment

Risk Portfolio Management

Business Impact Analysis

Risk Management OperationsRisk Mitigation Development

Risk Intervention Development

ICT Service Delivery

Continuous ICT Service Improvement

Continuous Stakeholder Engagement

Information and Knowledge Sharing / Exchange

Information and Knowledge Utilisation

Information Discovery

Communication Operations

Workforce Capability Development Human Resource Operations

Internal Communication Strategy Development

External Communication Strategy Development

Brand Strategy Development

Stakeholder Engagement Strategy Development

Procurement Strategic Development Operational Procurement

Customer-Centric Service Design and

Development


Business Capability Principles In this and related material we have applied the following principles to Capabilities:

They are the building blocks of the business.

They represent stable business functions.

They should be self-contained.

They are abstractions of the organisation.

They capture the business’ interests and will not be decomposed beyond the level at which they are useful.

They are the “what?” and “why?” not the “how?”, “who?”, or “where”

At the highest level they roll up more detailed views.

Capabilities should be categorised using GEA-NZ v3+ reference taxonomies.

Business capabilities are the building blocks of the business Business capabilities are the building blocks of the business architecture, so thinking of capabilities as an architectural blueprint is a good analogy, whereas the process is the implementation of that architecture at any given time. Once this more objective and stable view of the business is established, organisations can understand significantly more about dependencies between capabilities and get a much better understanding of the business: within a line of business, across business units, and over time.

Business capabilities represent stable business functions Both the function and the business capability must be enduring and stable unlike the processes, strategy & initiatives which can change frequently.

Business capabilities should be self-contained It is helpful to think about business capabilities as self-contained pieces of a business that potentially could be sourced from another business unit, another agency, or an external provider. Can it be logically separated and shifted? If not we may be getting too detailed.

Sourcing of capabilities is also something that is worth thinking about – is this something that potentially could be out-sourced from the agency or is it core to the agency? If something could be outsourced why would you do it? Is it because it is a commodity function that could be done more effectively by a specialist provider? Is it something you need to be able to do well but currently don’t have the right skill sets for, so could it be out-sourced for a time before being brought back inside the agency?

Business capabilities are abstractions of the organisation Business capabilities are abstractions of "what" an organisation does that are completely separated from "how" the organisation chooses to implement them. Capabilities exist at many levels of scale, from “Financial Management” at a high level, to "Finical Operations" at a next level, troughs to “Raise an Invoice” at a lower level (The lower level capabilities are not defined in this GCM).

This view of the organisation provides the architect with various aggregations of the enterprise. These make management easier by enabling the architect to see different reusable units and how they interact. Enabling the analyst or architect with this view of reusable units, provides a foundation from where they can react to and change the organisation to adapt to predictable and unpredictable change.

Business capabilities will not be decomposed beyond the level at which they are useful In general we expect the business capabilities to be defined to a level at which it is useful to the stakeholders. Where we want very fine grained detail we would use the GEA-NZ reference taxonomies – yet this is too detailed for many of the stakeholders. While comprehensive it presents functions without any weighting of what may be strategically more important and therefore should be visible.


Business capabilities are “what?” and “why?” not the “how?”, “who?”, or “where” Business capabilities are about defining what needs to be delivered and why it needs to be delivered but does not define the how it will be delivered. Capability is conceptual.

For example as a small business owner with staff I need a “Pay staff accurately on time capability”. The how is not part of the capability; I could implement it by pulling out my wallet and giving staff money, through to having an accounting and time keeping software package that direct credits pay into staff accounts.

Business capabilities at the highest level roll up more detailed views Business capabilities at the highest level roll up some more detailed capabilities and the related underlying business functions.

Business capabilities should be categorised using GEA-NZ v3+ reference taxonomies Business capabilities will be bounded by alignment / categorisation to the relevant GEA-NZ v3+ reference taxonomies. This will allow gaps and overlaps to be readily identified and any duplication avoided, or explained and justified. The GEA-NZ v3+ Data and Information taxonomy is used for information discovery which helps define the capability listing the motivators, the entities, and the activities.

People capabilities are not defined in GEA-NZ v3+.


Enterprise Business Capabilities

EC01 - Strategy and Planning

EC01Strategy and Planning

EC01.01Business Strategy

Development

EC01.02Strategic Roadmap

Development

EC01.03Corporate

Governance

EC01.05Business Performance

ManagementEC01.04

Outcome Management

Capability Description There are two basic questions to ask of management: are we doing things right, and are we doing the right things? Operational management focuses on doing things right, and many tools have been developed to improve this (e.g. TQM, Six Sigma, business process reengineering etc.), including many maturity models. Strategic Portfolio management answers the second question are we doing the right things. In any organisation, it is the strategy, driven from the vision of the leadership that defines what the right things are. Process improvements alone cannot guarantee that an organisation will be successful, or that an agency will achieve its mission. These two aspects of management – strategic and operational – complement each other, so both must be assessed to determine the organisation's total management capabilities and are bridged with the Programme and Project Management capability.

An organisation’s strategy should be:

Valuable: An organisation’s strategy needs to effectively allocate resources to the best investment opportunities, drive performance and raise expectations internally and externally, improve the organisation’s outcomes and add value.

Enduring: In developing a strategy, organisations should consider short-term and long-term cycles and macro-trends while ensuring their plan is resilient and adaptive.

Forward-looking: A solid strategy appropriately anticipates risk, uncertainty and optionality.

Actionable: A high performing organisation ensures their strategy is both intuitive and realistic. It should be easy to communicate the strategy internally and externally and provide an approach that can be acted on by all business units at all levels.


The table below describes the sub-capabilities: Id Name Description

EC01.01 Business Strategy Development

The Business Strategy Development capability focusses on the development of goals, objectives, strategies and tactics based on factual data. The first step in the development of any business strategy is the determination of the goals. For government entities these will be All-of-Government, sector and agency goals. This will set the stage for developing measures and specific actions that the organisation will need to take to achieve these goals. For instance, the goal might be to "Be more customer-centric" and to "Improve customer experience". Once a goal has been established and the actions needed are clear, information is gathered so that the decisions are based on solid facts and data. The situation analysis involves a review of information internal as well as external to the agency. A SWOT analysis needs to be executed to identify the agency's strengths and weaknesses, which are internal; and opportunities and threats, which are external. Based on that information and by prioritising these items, the organisation gets a better sense of the most important areas to focus on. Objectives are the measurable element of the strategy. Objectives indicate, specifically, what outcomes are desired. While goals set a broad direction ("Improve customer experience"), objectives will provide the detail that ensures the team knows when it achieves success. Strategies and tactics will indicate how and what the organisation will need to do to achieve its goals and objectives. Strategies provide general guidance, such as "engage in social media activities," while tactics outline specific tasks that will be done, such as "set up a LinkedIn discussion group".

EC01.02 Strategic Roadmap Development

Strategic Roadmaps are planning tools that identify strategic goals and pathways for improving the overall business and to achieve the strategic goals of the agency. The emphasis of the roadmap development capability is on activities and decisions, as opposed to business planning.

The outcome of the development process will be roadmaps that will identify: - Actionable steps necessary to achieve the desired outcomes. - Interdependencies among steps. - Alternative routes that will optimise opportunities or minimise risks.

When completed, the roadmaps will be used: - As a communication tool to inform key stakeholders on the potential for the agency, sector, and Government and their customers. - To identify the key issues that currently affects the organisation and its ability to improve. - To identify what actionable steps are required to achieve the desired goals and objectives, and within this, which actions and steps have the highest priority and which will give the greatest benefit relative to their cost. - To identify the intermediate steps and interdependencies within the organisation and their business partners.

EC01.03 Corporate Governance Corporate governance refers to the mechanisms, processes and relations by which the agency is controlled and directed. Governance structures and principles identify the distribution of rights and responsibilities among different participants in the agency (such as the board of directors, managers, shareholders, creditors, auditors, regulators, and other stakeholders) and include the rules and procedures for making decisions in corporate affairs. Corporate governance includes the processes through which the agency's objectives are set and pursued in the context of the social, regulatory and economic environments. Governance mechanisms include monitoring the actions, policies, practices, and decisions of the leaders.

EC01.04 Outcome Management Outcome Management is the strategic approach to ensure that initiatives are designed around departmental and government outcomes and that the intended outcomes are achieved. Just as project management deals with the processes necessary to deliver a capability and/or product within a pre-established time frame and budget, Outcome Management adds value to the organisation increasing value is achieved through effective benefits realisation.

EC01.05 Business Performance Management

Business Performance Management is a set of management and analytic processes that enables management of performance to achieve one or more pre-selected goals. Business Performance Management has three main activities: - Selection of the goals. - Consolidation of measurement information relevant to the agency’s progress against these goals. - Interventions made by managers in light of this information with a view to improve future performance against these goals.


Strategic direction Each agency has its own strategic directions, like:

DIA - http://www.dia.govt.nz/SOI/2013/strategic-direction.html

MoH - http://www.health.govt.nz/about-ministry/what-we-do/strategic-direction

The Treasury - http://www.treasury.govt.nz/abouttreasury/strategicdirection

At All of Government level the ICT Strategy and Action plan 2017 and the Better Public Services Results sets out the strategic goals and objectives for the New Zealand Government.

Outcomes A good Strategy and Planning capability will identify and manage the goals and objectives of the organisation so it can achieve their strategic vision. The outcome will enable the organisation's staff to focus on a set of clearly defined goals, objectives, and outcomes in order to achieve the desired results. The organisation benefits from having a carefully crafted plan to gain the following benefits:

New insights from other peoples’ perspectives

Identification of the challenges as the best thinkers see them

New ways of thinking about old problems

Alternatives beyond the resources the organisation has traditionally brought to bear

Buy-in from others

A high focus on critical success factors

Analysis from others’ perspectives on the feasibilities of new goals and objectives

Identification of challenges and barriers

Strategy and Planning drives everything else within the organisation.

The Strategy and Planning capability for a government entity will have to be aligned with the Government ICT Strategy and Action Plan to 2017 and the Better Public Services. Having a clear four-year plan will help the agency improve their performance and will get support from ministers.

http://www.dia.govt.nz/SOI/2013/strategic-direction.html

http://www.health.govt.nz/about-ministry/what-we-do/strategic-direction

http://www.treasury.govt.nz/abouttreasury/strategicdirection


EC02 - Change Management

EC02Change Management

EC02.01Transformation Strategy Design

EC02.02Change Sponsorship

EC02.03Transformation

Planning

EC02.04Transformation

Governance

EC02.05Change Resistance

Management

EC02.06Benefit Management

EC02.07Change Readiness

Assessment

EC02.08Programme and Project

Management

EC02.09Requirements Management

EC02.10Change

Communication

EC02.11Change Coaching and

Training

Capability Description Change Management affects the activities involved in managing changes to how the government conducts its business in providing government services to individuals, businesses and other organisations including managing the resulting changes to business requirements, as well as their impacts on stakeholders of the government business solutions.


EC02.01 Transformation Strategy Development

Developing a transformation strategy includes a comprehensive assessment of current and new processes, technologies, people, and resources. Most transformation strategies are about responding to changes that new technologies cause in our daily lives, individual businesses and organisations, industries and various segments of society. These changes are not brought upon us by the technologies themselves but by people. The ways people use and experience new technologies can have very unexpected consequences. It is important for the success of transformation strategy to put people and processes above technology.

EC02.02 Change Sponsorship Change management requires sponsorship by senior leaders in the organisation. Sponsorship involves active and visible participation by senior business leaders throughout the change management process. Plans and roadmaps for sponsorship activities are needed.

EC02.03 Transformation Planning

Transformation Planning starts at the top of the organisation with strategic goals, objectives, and planning. All strategic decisions have an impact on the organisation and the organisation will have to adapt to achieve those strategic goals and objectives. Transformation Planning is the capability to plan the different changes within the organisation and to make sure they are all aligns with each other so the predicted outcomes are achieved with as less destructive impact to the whole organisation.

EC02.04 Transformation Governance

Transformation Governance is the capability to ensure that the organisational and transformation principles are well applied to design and implementation of the transformation. It also ensures that the organisation meet business and technology objectives and standards. Transformation Governance enables effective alignment of business and technology, manages risk by reducing probability of failures in transformation and incorporates elements of cost effectiveness and value.

EC02.05 Change Resistance Management

Change Resistance management is the capability to manage employee resistance to change. A transformation programme needs to identify, understand, and manage resistance to change.

EC02.06 Benefit Management Benefits management is the capability to increase the successful delivery of quantifiable and meaningful business benefits to an organisation during change. It focuses on how business areas will benefit from change and provides a framework for identifying, planning, measuring and actively managing these benefits.


EC02.07 Change Readiness Assessment

Change Readiness assessments cover a wide range of areas across the organisation from sponsors to organisational culture in order to determine how ready the organisation is for change, and help identify area and factors that can affect the success of the change.

EC02.08 Programme and Project Management

Programme management is the capability to manage several related projects and oversee the implementation of each of those projects into one overall group of outcomes to achieve the organisation's goals and objectives. Project management is the capability to manage people and other resources to deliver the project outcome.

EC02.09 Requirements Management

Requirement management is the capability to document, analyse, trace, prioritise, and agree on requirements for an initiative and communicate with the relevant stakeholders. Requirement management covers functional and non-function requirements, high level through to more detailed requirements.

EC02.10 Change Communication

Change communication is the capability to build awareness of the need for change and to create the desire for change. At each step of the change process the right messages need to be delivered at the right time - this requires careful analysis of the audience and the messages, and a communication plan.

EC02.11 Change Coaching and Training

Change coaching and Training is the capability to gain support from the direct supervisors and managers of employees and provide training in order for employees to be able to implement the change.

Outcomes The outcome of an effective change management is the following:

Return on investment: o The approach to change is re-used for each initiative saving the number of days spent defining a unique approach to each change initiative. o Faster implementation of change as those involved have the confidence to know where to get started, who to involve and can estimate with greater certainty the impact on their

workloads and the level of impact in their area.

Quality of the outcome achieved: o Increased understanding of the impact of the change which ensures that all processes, systems and people that are impacted are consulted, and their requirements incorporated into the

change plan. o Appropriate levels of involvement with agreed responsibilities for making the change happen reduces the resistance to change and increases the rate of adoption, leading to greater

realisation of benefits.

Efficiency of resources: o Clarifies the roles and responsibilities of all those involved in the change effort, ensuring that those with the most relevant skills and experience are given appropriate activities to manage. o Reduction in the number of ‘failed’ change initiatives and the waste of resources involved in making changes that ‘run out of steam’ or get overtaken by other events which had not been

assessed when the change was conceived. o Reduction in the level of activity that is duplication of effort or that is running at cross purposes to other changes being made elsewhere in the organisation. o Enhanced employee morale and a reduction in recruitment and retention costs.


EC03 - Financial Management

EC03Financial Management

EC03.01Financial Strategy

Development

EC03.02Financial Forecasting and

Planning

EC03.03Financial

Governance

EC03.04Financial Control

EC03.05Financial Auditing

EC03.06Financial Operations

Capability Description Financial Management means planning, organising, directing and controlling the financial activities such as procurement and utilisation of funds of the organisation. It means applying general management principles to financial resources.

The scope of Financial Management includes:

Investment decisions - Includes investment in fixed assets and current assets.

Financial decisions - Relates to the raising of finance from various resources which will depend upon decision on type of source, period of financing, cost of financing and the returns.

Dividend decision - Decision making with regards to the net profit distribution. Net profits are generally divided into two: dividend for shareholders and retained profits.

The financial management is generally concerned with procurement, allocation and control of financial resources. The objectives include:

Ensuring regular and adequate supply of funds.

Ensuring adequate returns to the shareholders which will depend upon the earning capacity, market price of the share, expectations of the shareholders.

Ensuring optimum funds utilisation. Once the funds are procured, they should be utilised in maximum possible way at least cost.

Ensuring safety on investment, i.e., funds should be invested in safe ventures so that adequate rate of return can be achieved.

Planning a capital structure that is a fair composition of the capital so that a balance is maintained between debt and equity capital.

The functions within Financial Management include:

Estimating capital requirements: A finance manager has to make estimation with regards to capital requirements of the company. This will depend upon expected costs, profits, future programmes, and policies estimating in an adequate manner which increases earning capacity of the enterprise.

Determination capital composition: Once the estimation has been made, the capital structure has to be decided. This involves short- term and long- term debt equity analysis. This will depend upon the proportion of equity capital an organisation is possessing and additional funds which have to be raised from outside parties.

Choosing sources of funds: For additional funds to be procured, a company has many choices like-Issue of shares and debentures, loans to be taken from banks and financial institutions.


Choosing factors that will depend on relative merits and demerits of each source and period of financing.

Investing funds: The finance manager has to decide to allocate funds into profitable ventures so that there is safety on investment and regular returns is possible.

Disposing surplus: The net profits decision have to be made by the finance manager. This can be done in two ways:

Dividing declaration: It includes identifying the rate of dividends and other benefits like bonus.

Retaining profits: The volume has to be decided which will depend upon expansion, innovation, and diversification plans of the organisation.

Managing cash: Finance manager has to make decisions with regards to cash management. Cash is required for many purposes like payment of wages and salaries, payment of electricity and water bills, payment to creditors, meeting current liabilities, maintenance of enough stock, purchase of raw materials, etc.

Financial controls: The finance manager has not only to plan, procure and utilize the funds but he also has to exercise control over finances. This can be done through many techniques like ratio analysis, financial forecasting, cost and profit control, etc.


EC03.01 Financial Strategy Development

Developing a financing strategy includes a comprehensive assessment of potential new financing options from concessional and non-concessional sources, as well as possible grant inflows, focusing on how to best mobilise the highest quality financing to support priorities and ensure debt sustainability for the organisation. The basis of resource need to be concessional, conditional, predictable, flexible, and focussed on organisational priorities and other policy and procedural criteria.

EC03.02 Financial Forecasting and Planning

Financial Forecasting and Planning starts at the top of the organisation with strategic planning. Since strategic decisions have financial implications, the budgeting process is closely linked to the strategic planning process. Financial Planning is a continuous process of directing and allocating financial resources to meet strategic goals and objectives in order to add value to the organisation. The output from financial planning takes the form of budgets. In order to develop budgets, a forecast needs to be undertaken to see what drives much of the financial activity.

EC03.03 Financial Governance Financial Governance is the combination of institutions, rules, and norms that structure governance in these policy areas. Fiscal governance focusses on directing and approving how budgetary policy is planned, approved, carried out and monitored, generally involving more than the agency. The core of financial governance regulations is the requirement that all financial processes are managed according to a stringent set of rules and regulations, backed by accurate reporting capabilities. This management and recording of internal controls, to work toward compliance, can be set down in a concise and controlled manner and can save the organisation significant time and money.

Financial governance is important for good overall governance because the consequences of failure can be so devastating for the organisation that no matter how good the rest of area's governance may be financial failure can bring it undone.

There are three keys to effective financial governance: - Creating a policy that guides the CEO in developing the business plan including the budget or financial plan – this relates primarily to the operating revenue and costs of the business as well as the cash flow management of the organisation. - Creating a policy that establishes the basis for the organisation’s wellbeing – this relates to the management of the assets and liabilities of the business. - Monitoring processes that provide the organisation with sufficient financial information to be satisfied that the finances are being appropriately managed towards the achievement of both the short and long term goals. This includes establishing key performance indicators and benchmarks for performance evaluation and a framework that provides the board, management and staff with a reporting system in an accurate and timely manner.

EC03.04 Financial Control Financial Control is the capability to track performance and evaluate progress toward the financial goals of the organisation. Financial controls evaluate how well the organisation is following the strategic plans and how valid the strategic decisions were in the first place. Financial controls include tracking progress and evaluating results. During strategic planning, management defines measurable objectives for operations. Financial controls report on these objectives and to what extent they have been met. During the reporting period, managers can impose corrective action if necessary and at the end of the reporting period, the results form part of the overall evaluation of the success of the strategic plan.


EC03.05 Financial Auditing Financial Auditing is the capability to conduct an audit to provide an opinion whether financial statements are stated in accordance with specified criteria. Normally, the criteria are international accounting standards, although auditors may conduct audits of financial statements prepared using the cash basis or some other basis of accounting appropriate for the organisation. In providing an opinion whether financial statements are fairly stated in accordance with accounting standards, the auditor gathers evidence to determine whether the statements contain material errors or other misstatements. The audit opinion is intended to provide reasonable assurance that the financial statements are presented fairly, in all material respects, and/or give a true and fair view in accordance with the financial reporting framework. The purpose of an audit is to provide an objective independent examination of the financial statements, which increases the value and credibility of the financial statements produced by management, thus increase user confidence in the financial statement, reduce stakeholder risk and consequently reduce the cost of capital of the preparer of the financial statements.

EC03.06 Financial Operations Financial Operations is the capability of the day-to day operations of accounting services, financial reporting, payroll, loan collections, taxes, and other financial services.

Outcomes The main outcome of Financial Management within government is to strengthen the linkage between planning, budget, service delivery and accountability. It involves the allocation of resources to agencies based on the specification of the product and services that they will deliver, the intended outcomes to be achieved, and the systematic monitoring and reporting of progress against agreed performance indicators and measures.

Good financial management will help the organisation to:

Make effective and efficient use of resources.

Achieve objectives and fulfil commitments to stakeholders.

Become more accountable to stakeholders.

Gain the respect and confidence of funding agencies, partners and beneficiaries.

Prepare for long-term financial sustainability.

There are four components of good financial management:

A clear finance strategy.

Securing funding and generating income.

A robust financial management system.

A suitable internal environment.


EC04 - Enterprise Risk Management

EC04Enterprise Risk Management

EC04.01Strategic Risk Assessment

EC04.02Risk Portfolio Management

EC04.04Risk Improve Effectiveness

Planning

EC04.05Risk Mitigation

Planning

EC04.07Risk Management

Governance

EC043.08Risk Intervention

Monitoring

EC04.09Security Control

EC04.10Mitigation Improvement

Management

EC04.11Risk Mitigation Development

EC04.12Risk Intervention

Development

EC04.13Risk Management

Operations

EC04.06Business Continuity

Planning

EC04.03Business Impact

Analysis

Capability Description Enterprise Risk Management (ERM) is the capability of agencies to manage their risks through their different business units and functions that identify and manage particular risks. Each risk function varies in capability and how it coordinates with other risk functions. A central goal and challenge of ERM is to improve this capability and coordination, while integrating the output to provide a unified picture of risk for stakeholders and improving the organisation's ability to manage the risks effectively.

The primary risk functions that should participate in an ERM program are:

Strategic planning - identifies external threats along with strategic initiatives to address them.

Marketing - understands the customer to ensure product/service alignment with customer requirements.

Compliance and Ethics - monitors compliance with code of conduct and directs fraud investigations.

Accounting and Financial compliance - identifies financial reporting risks.

Policy - manages legislation and analyses emerging legal trends that may impact the agency.

Insurance - ensures the proper insurance coverage for the organisation.

Treasury - ensures cash is sufficient to meet business needs, while managing risk related to commodity pricing or foreign exchange.

Operational Quality Assurance - verifies operational output is within tolerances.

Operations management - ensures the business runs day-to-day and that related barriers are surfaced for resolution.

Customer service - ensures customer complaints are handled promptly and root causes are reported to operations for resolution.

Internal audit - evaluates the effectiveness of each of the above risk functions and recommends improvements.


Common challenges in ERM implementation

Identify executive sponsorship for ERM.

Establish a common risk language or taxonomy.

Describe business unit’s risk appetite - risks they are willing to take and risk they are not willing to take.

Identify and describe the risks in a risk catalogue.

Implement a methodology to prioritise risks within and across business units and functions.

Establish a risk steering group to authorise and coordinate activities around risk management.

Establish ownership for particular risks and responses.

Demonstrate cost-benefit of the risk management effort.

Develop an action plan to ensure the risks are appropriately managed.

Develop consolidated reporting for the various stakeholders.

Monitor the results of the actions taken to mitigate the risks.

Ensure efficient risk coverage by internal auditors, consulting teams, and other evaluating entities.

Ensure a secure working environment for contractors, partners, and remote employees.


EC04.01 Strategic Risk Assessment

Strategic Risk Assessment is the capability to systematically and continually assessing significant risks facing the organisation. Conducting an initial assessment is a valuable activity for senior management and the board of directors. Current thought leadership on corporate governance and board responsibilities is virtually unanimous that a key board responsibility is to understand the organisation’s strategies and associated risks and to ensure that management’s risk management practices are appropriate.

EC04.02 Risk Portfolio Management

Risk Portfolio Management is the capability of making decisions about risks, investments and policy, matching investments to risk objectives, asset allocation for individuals and institutions, and balancing risk against performance. Risk Portfolio management is all about strengths, weaknesses, opportunities and threats for the organisation.

EC04.03 Business Impact Analysis

Business Impact Analysis is the capability to determine the relative importance or criticality of business functions, operations, supplies, systems, relationships etc. that are required to achieve the organisation's operational objectives. It drives the priorities, planning, preparations and other business continuity management activities.

EC04.04 Risk Improve Effectiveness Planning

Risk Improve Effectiveness Planning is the capability of planning a systematic way of finding how effective an organisation’s current approach to managing risk is. It considers the intentions of the organisation, how they are expressed and communicated and also what happens in practice. This leads to a realistic improvement program plan for the organisation’s risk management framework and each application of the risk management process. The plan has five major steps: Prepare, Elicit and verify, analyse gaps and evaluate, gain ownership and plan, and report to the oversight committee.

EC04.05 Risk Mitigation Planning

Risk Mitigation Planning is the process of developing options and actions to enhance opportunities and reduce threats to the organisation's objectives.


EC04.06 Business Continuity Planning

Business Continuity Planning is the capability that encompasses a loosely defined set of planning, preparatory and related activities which are intended to ensure that the organisation’s critical functions will either continue to operate despite serious incidents or disasters that might otherwise have interrupted them, or will be recovered to an operational state within a reasonably short period.

Business continuity includes three key elements: - Resilience: critical business functions and the supporting infrastructure are designed and engineered in such a way that they are materially unaffected by most disruptions, for example through the use of redundancy and spare capacity. - Recovery: arrangements are made to recover or restore critical and less critical functions that fail for some reason. - Contingency: the organisation establishes a generalised capability and readiness to cope effectively with whatever major incidents and disasters occur, including those that were not, and perhaps could not have been, foreseen. Contingency preparations constitute a last-resort response if resilience and recovery arrangements should prove inadequate in practice.

Some examples of risks: - Single points of failure with the Telco link between NZ and Australia. How will Treasury maintain balance of payments account if it cannot access the Internet via this link or a broken down ICT infrastructure as with Christchurch disaster. - How does petrol and oil get distributed to power the generators if there are poor or broken roads as a result of earthquakes? - How do people access the Government resources that are on their websites if they cannot access it?

EC04.07 Risk Management Governance

Risk Management Governance refers to the institutions, rules conventions, processes and mechanisms by which decisions about risks are taken and implemented. It can be both normative and positive, because it analyses and formulates risk management strategies. Risk Management Governance goes beyond traditional risk analysis to include the involvement and participation of various stakeholders as well as considerations of the broader legal, political, economic and social contexts in which a risk is evaluated and managed. The scope of Risk Management Governance encompasses public health and safety, the environment, old and new technologies, security, finance, and many others.

EC04.08 Risk Intervention Monitoring

Risk Intervention Monitoring is the capability to monitor the process and targeted intervention to: - Identify the organisation's risks and develop a risk library. - Identify and prioritise “risks that matter” to the organisation. - Develop mitigation plans for “risks that matter”. - Develop a risk monitoring process.

EC04.09 Security Control Security Control is the capability to significantly reduce security vulnerabilities. Today’s connected environment introduces various ethical, financial and regulatory pressures to protect the privacy of individuals and the information assets of organisations from internal and external threats and unauthorised access. Successful attacks, whether deliberate or inadvertent, are an increasingly more costly and damaging, both to the organisation and its customers. To meet these challenges, Security Control is a fundamental strategic driver of the business. Security Control defines a conceptual, physical and procedural model of best practices for end-to-end enterprise security.

This includes: - The approach for determining and setting the baseline or threshold of acceptable risk to the business. - Standard methods for ascertaining appropriate classification of information assets. - A base set of policies, processes, standards, and procedures for achieving and maintaining an integrated defense of the organisation's information resources and assets. - The security functions, roles and responsibilities appropriate for each member of the organisation. - The essential skills and knowledge needed to perform information security effectively.


EC04.10 Mitigation Improvement Management

Mitigation Improvement Management is the capability to continuously improve the anticipation of risks, threats, and disasters. Developmental considerations play a key role in contributing to the mitigation and preparation of an organisation to effectively confront those threats and disasters. As a security breach or disaster occurs, risk management, become involved in the immediate response and long-term recovery phases. The four risk management phases illustrated here do not occur in isolation or in this precise order. The phases overlap and the length of each phase greatly depends on the severity of the breach or disaster. - Mitigation - Minimizing the effects of breach or disaster. - Preparedness - Planning how to respond. - Response - Efforts to minimise the hazards created by a breach or disaster. - Recovery - Returning to normal.

EC04.11 Risk Mitigation Development

Risk Mitigation Development is the capability to develop the processes of executing risk mitigation actions. Risk mitigation progress monitoring includes tracking identified risks, identifying new risks, and evaluating risk process effectiveness throughout the project.

EC04.12 Risk Intervention Development

Risk Intervention Development is the capability to create a strong risk culture based on the empowerment of the business. It creates a dedicated risk-culture function within the risk organisation by: - Creating awareness and a common language and identifying improvement levers and implement them, for example, by rolling out a semi-annual or quarterly risk-culture self-assessment. - Launching a program to assess and transform current risk capabilities with the support of a dedicated change team. - Defining specific actions, owners, and milestones, and establishing an ongoing method of monitoring the risk-culture transformation.

EC04.13 Risk Management Operations

Risk Management Operations is the capability of the day-to day operations of risk management data protection, risk event operations, implement risk communication channels, etc.

Outcomes Enterprise Risk Management provides the necessary foundations and organisational arrangements for managing risk across the organisation. It outlines how an organisation effectively and efficiently manages risks. It strengthens the overall practices, decision making and resource allocation.

The benefits of ERM are:

Effective management of adverse events or opportunities that impact on the organisation’s goals and objectives.

Making informed decisions regarding management of potential negative effects of risk and taking advantage of potential opportunities.

Improved planning and performance management processes. This enables the organisation to focus on core business service delivery and implement business improvements.

Ability to direct resources to risks of greatest significance or impact.

Greater organisational efficiencies through avoiding ‘surprises’.

Creation of a positive culture in which people understand their role in contributing to the achievement of objectives.

A good embedded ERM system aims to:

Integrate enterprise risk management within the organisation’s performance management cycle.

Communicate the benefits of risk management.

Convey the organisation’s policy, approach and attitude to risk management.

Set the scope and application of risk management within the organisation.

Establish the roles and responsibilities for managing risk.

Set out a consistent approach for managing risks, aligned with relevant standards and industry best practice.

Detail the process for escalating and reporting risks.

Convey the organisation’s commitment to periodic reviews and verifications of the ERM system and its continual improvement.

Describe the resources available to assist those with accountability or responsibility for managing risks.

Ensure the organisation meets its risk reporting obligations.


The ERM principles guide how effectively and efficiently risks are managed:

Creating and protecting value – ERM contributes to the achievement of objectives and improves performance in areas such as corporate governance, program and project management, and health and safety of staff.

An integral part of all organisational processes – ERM is not performed in isolation. Rather, it is an integral part of our governance and accountability arrangements, performance management, planning and reporting processes.

Part of decision-making – ERM aids decision-makers to make informed choices, prioritise activities and identify the most effective and efficient course of action.

Explicitly addressing uncertainty – ERM identifies the nature of uncertainty and how it can be addressed through a range of mechanisms, such as sourcing risk assessment information and implementing risk controls.

Systematic, structured and timely – ERM contributes to efficiency, consistent, comparable and reliable results.

Based on the best available information – ERM should draw on diverse sources of historical data, expert judgment and stakeholder feedback to make evidence-based decisions. Decision-makers should be cognisant of the limitations of data, modelling and divergence among experts.

Tailored – ERM aligns with the internal and external environment within which the organisation operates, and in the context of the organisation’s risk profile.

Human and cultural factors – ERM recognises that the capabilities, perceptions and aims of people (internal and external) can aid or hinder the achievement of objectives.

Transparent and inclusive – ERM requires appropriate and timely involvement of stakeholders to ensure that it stays relevant and up to date. Involving stakeholders in decision making processes enables diverse views to be taken into account when determining risk criteria.

Dynamic, iterative and responsive to change – ERM responds swiftly to both internal and external events, changes in the environmental context and knowledge, results of monitoring and reviewing activities, new risks that emerge and others that change or disappear.

Continual improvement of the organisation – ERM facilitates continuous improvement of operations by developing and implementing strategies to improve risk management maturity.


EC05 - Communications

EC05Communications

EC05.01Internal

Communication Strategy Development

EC05.03Brand Strategy Development

EC05.04Internal Communication

Planning

EC05.05External Communication

Planning EC05.06Communication

Governance

EC05.07Communication KPI

Management

EC05.08Public Relations

Development

EC05.09Event Development

EC05.10Communication

Design

EC05.11Communication

Operations

EC05.02External

Communication Strategy Development

Capability Description The Communications capability provides strategic communications consultation, media relations efforts, strategic digital communication and planning services on behalf of the organisation.


EC05.01 Internal Communication Strategy Development

Internal Communications serves as a channel or network that links parts of the organisation together. Much of the communication that occurs in an organisation is informal and uncontrollable, other communications are structured and intentional and carefully planned. An internal customer insight mechanism needs to be in place for internal strategy development. The development of the internal communications strategy is to identify: - What are the goals, ambitions and it strategic aspirations for the future? - What do the people in the organisation need to think, feel and do in order to make those goals a reality? - Where are employees now? What needs to change in their current perceptions, attitudes, or access to basic information? - What’s the role of the internal communication function in helping close the gap of what we want for the future, and what we’ve got today? - What are the roles and responsibilities of leaders, managers, employees and communication professionals? - What are the communication activities we’re going to need – and who will be responsible for what? - What resource levels do we need?

EC05.02 External Communication Strategy Development

External Communications Strategy Development refers to policy-making and guidance for consistent information activity between organisations. It includes the organisation’s efforts to understand and engage with key audiences to create, strengthen, or preserve conditions favourable for the advancement of organisation’s interests, policies, and objectives through the use of coordinated programmes, plans, themes, messages, and products.

EC05.03 Brand Strategy Development

Brand Strategy Development is the capability to determine what its brand promises and what its brand values and attributes are. The brand strategy must take into account internal and external audiences, how the organisation will implement the brand promises with both, and how adherence to the strategy and the value of the brand will be measured.


EC05.04 Internal Communication Planning

Internal Communication Planning is the capability to design plans and roadmaps to achieve the internal communication strategic goals and objectives.

EC05.05 External Communication Planning

External Communication Planning is the capability to plan and realise information flow, communication, media development and image care in a long-term. It conveys deliberate messages through the most suitable media to the designated audiences at the appropriate time to contribute to and achieve the desired long-term effect. External Communication Planning has to bring three factors into balance: the messages, the media channels and the audiences.

EC05.06 Communication Governance

Communication Governance capability is a set of regulation that structure the development of communication systems. It covers policy, regulatory, legal and economic aspects of media and communication services.

EC05.07 Communication KPI Management

The Communication KPI Management capability sets out the KPIs for internal and external communications. It focusses on the intended outcome and the shared responsibility. For example, increased inter-departmental communication is a way to gain internal efficiencies. External Communications can be broken down into external communications and marketing functions, corporate branding, identity, effect on stakeholders' relations, media relations, issues management and crisis communications, all with different desired outcomes and therefor KPIs.

EC05.08 Public Relations Development

Public Relations Development capability involves: - Establishing a news release calendar - Reaching out to the media in the form of pitching reporters and placing articles - Contributing articles - Publishing case studies - Speaking at conferences and forums - Writing blogs and participating in social media discussions - Crisis planning is also an essential part of PR development. This should include all possible negative scenarios and the appropriate responses to them.

EC05.09 Event Development Event Development involves the following steps: - Developing event goal and objectives - Organising an event team - Scheduling dates - Branding the event - Creating a master plan for the event - Determining administrative processes - Identifying and establishing partnerships and sponsors - Creating a publicity plan - Determining an evaluation process

EC05.10 Communication Design Communication Design is the capability to design and develop communication with people with media such as prints, crafts, electronic media or presentations. A communication design approach is not only concerned with developing the message aside from the aesthetics in media, but also with creating new media channels to ensure the message reaches the target audience. Some designers use graphic design and communication design interchangeably due to overlapping skills.

EC05.11 Communication Operations

Communication Operations is the capability of the day-to day operations of communications such as sharing of information, event operations, implement communication channels, delivery of information, communication training, broadcasting, scanning online news, etc.


Outcomes

Communication is an instrument of strategy; it helps the organisation share and communicates goals and objectives to internal and external stakeholders. A good internal communication strategy, management, and design create a sense of community and trust with employees, create a line of sight for the employees and engage them to make the business perform successfully.

The outcomes of a good internal communication capability are:

Employees understand the goals and objectives of the organisation. They feel valued, listened to, and are an important part of the overall organisation.

Employees are more productive and there is meaning to their work. As a result, they contribute more and feel better about their contribution and the organisation so they stay on the job and help move the business forward.

Leaders are better able to understand employee needs and how to meet those needs to motivate, inspire and engage them.

Overall benefits - higher levels of performance and better business results.

Almost all major organisations are undergoing some sort of transformation which is predominantly focussed on technology. But new technology does not secure success, the people who are going to use the new technologies who add an unpredictable, complex dimension.

Open and frequent communication is an essential factor in successful transformation. Give people the information they need about the benefits and impact of the transformation, and they will more readily accept and support the effort. Leaders of transformation programs need a strategy that incorporates the communication needs of key stakeholders, the resources and channels required to reach these audiences, and the processes that support an understanding of the goals and benefits of the transformation programme.

It is important to understand that neglecting to provide information to the public represents a serious impediment to governance, and underscoring the benefits of improved government communication has a strong multiplier effect. This point underlies the need to address what incentives the organisation has to share information -both internally and externally- or be held accountable, and explain how improved communication capacity can deliver those benefits.

Government entities have three primary functions of communication: informing, advocating/persuading for policies and reforms, and engaging citizens. Communication represents an important function of government, responsible for improving three principle elements of government:

Effectiveness - building broad support and legitimacy for programs.

Responsiveness - knowing citizens needs and responding to them.

Accountability - explaining government stewardship and providing mechanisms to hold governments accountable.

External communication, with the media and the public, can have a disciplining impact on policy work and help coordinate communication within governments, because consistent internal information is required to communicate efficiently and effectively with external audiences.


EC06 - ICT Management

EC06ICT Management

EC06.01ICT Strategy

Development

EC06.02ICT Planning

EC06.03ICT Change

Planning

EC06.07ICT Service Transition

EC06.04ICT Governance

EC06.05ICT Performance

Management

EC06.08ICT Service Design and

Development

EC06.06Technology

Benchmarking

EC06.10Continuous ICT Service

Improvement

EC06.09ICT Service Delivery

Capability Description ICT Management is the capability to plan, organises, direct, control and coordinate, development, maintenance and use of information, technology and telecommunication systems within the organisation.


EC06.01 ICT Strategy Development

ICT Strategy Development is the capability to create an ICT strategy for the organisation which aligns the priorities of ICT with the priorities of the business, ensures that ICT is capable of fulfilling its role in the business, and aligns the characteristics of ICT with those of the business.

EC06.02 ICT Planning ICT Planning is the capability to design plans and roadmaps for information and technology systems to be aligned with the overall strategic goals and objectives.

EC06.03 ICT Change Management

ICT Change Management is an ICT service management discipline. The objective of ICT Change Management is to ensure that standardised methods and procedures are used for efficient and prompt handling of all changes to control ICT infrastructure, in order to minimise the number and impact of any related incidents upon service. Changes in the ICT infrastructure may arise reactively in response to problems or externally imposed requirements, e.g. legislative changes, or proactively from seeking improved efficiency and effectiveness or to enable or reflect business initiatives, or from programmes, projects or service improvement initiatives. ICT Change Management can ensure standardised methods, processes and procedures which are used for all changes, facilitate efficient and prompt handling of all changes, and maintain the proper balance between the need for change and the potential detrimental impact of changes. ICT Change Management is often associated with ITIL.

EC06.04 ICT Governance ICT governance is the system by which the current and future use of ICT is directed and controlled. It involves evaluating and directing the plans for the use of ICT to support the organisation and monitoring this use to achieve plans. It includes the strategy and policies for using ICT within an organisation.

EC06.05 ICT Performance Management

ICT Performance Management is a capability to monitor and measure relevant performance metrics to assess the performance of ICT resources such as networks, applications, self-learning, and business transactions.


EC06.06 Technology Benchmarking

Technology Benchmarking is the capability to compare the performance of an organisation with best practices and technology of others. Technology Benchmarking focuses on the understanding details of the organisation's processes, and then compare those with that of others analysed. Comparison may also involve best practice based on standards and specifications stemming from the systematic study of science literature, and business literature with the scope to identify relevant information and technologies. In many cases, dedicated journals provide indicators that compare characteristics of similar products / technologies that make a comparison easier.

EC06.07 ICT Service Transition ICT Service Transition is the roll-out of systems, services and project deliverables. They must occur in a controlled manner without compromising data security. This ensures that the roll-out of the deliverables does not jeopardise the business. ICT Service Transition needs to consider different phases of the roll-out for a service or process and the possibility for automation. In roll-outs it is necessary to prepare for unexpected situations by ensuring a roll-back to the previous state is possible should the need arise. ICT Service Transition builds the organisational capabilities for efficient service operation and for keeping the service promise.

EC06.08 ICT Service Design and Development

ICT Service Design and Development is the analysis, design, and development of digital services. ICT Service Design and Development starts by examining how the customer value of an existing service or a new opportunity could be increased. Analysis of user needs and experience should result in a fitting service concept and an appropriate user interface design.

EC06.09 ICT Service Delivery ICT Service Delivery is the capability to operate, promote, deliver, fix, and charge the developed ICT services to the end user. The operational part is the roll-out of systems, services and project deliverables. ICT Service Delivery builds the organisational capabilities for efficient service operation and for keeping the service promise. It also makes sure that the business continuity and disaster and recovery environment are in place and continuously maintained.

EC06.10 Continuous ICT Service Improvement

Continuous ICT Service Improvement is the capability to produces small and big improvements to ICT service quality, operative efficiency and to business continuity. Continuous ICT Service Improvement is possible through transparent measurement of services and service processes, analysis of measurement results and by means of further development in cooperation with the business. Assessment and implementation of ICT service improvement possibilities is a continual process. The Continuous ICT Service Improvement proposals accepted by the business are transferred to service production through service design and service transition. Continuous Service Improvement also includes preparing for changes in the ICT operating environment.

Outcomes The ICT Management capability covers the entire service lifecycle from the identification of business requirements, to designing and embedding a solution to maintaining the new service through continuous review and improvement.

Good ICT management helps with improving product and services by:

Managing business risk and service disruption or failure.

Improving and developing positive relationships with customers by delivering efficient services that meet their needs.

Establishing cost-effective systems for managing demand for product and services.

Support business change whilst maintaining a stable system environment.

Improved ICT management will:

Improve ICT resource utilisation

Increase the overall business performance

Decrease rework and eliminate redundant work

Improve project deliverables and time

Improve the availability, reliability and security of mission critical ICT services

Justify the cost of service quality and improvements

Provide services that meet business, customer and user demands

Integrate central processes

Document and communicate roles and responsibilities in ICT service provision

Learn from previous experience

Provide demonstrable performance indicators.


EC07 - Information and Knowledge Management

EC07Information and Knowledge

Management

EC07.01Information and

Knowledge Strategy Development

EC07.02Information and Knowledge

Planning

EC07.03Data and Information

Governance

EC07.04Knowledge Mapping

EC07.05Expert Directory

Management

EC07.07 Best Practice

Transfer

EC07.06Lessons Learned


Utilisation


Sharing / Exchange

EC07.08Knowledge Protocol

Development

EC07.11Information

Discovery

Capability Description Information and Knowledge management is the capability to capture, develop, share, and effectively use organisational information for decision making to achieve organisational goals and objectives. Information and knowledge management typically focus on organisational objectives such as improved performance, competitive advantage, innovation, the sharing of lessons learned, integration and continuous improvement of the organisation. The information and knowledge management efforts overlap with organisational learning and may be distinguished from that by a greater focus on the management of knowledge as a strategic asset and a focus on encouraging the sharing of knowledge. It is an enabler of organisational learning.


EC07.01 Information and Knowledge Strategy Development

The Information and Knowledge Strategy Development is the capability to develop a strategy that meets the knowledge and information requirements of the organisation and the general public.

EC07.02 Information and Knowledge Planning

Information and Knowledge Planning is the capability to design plans and roadmaps to implement the Information and Knowledge strategy.

EC07.03 Data and Information Governance

Data and Information Governance is the capability to manage the availability, usability, integrity, and security of the data and information employed in an organisation A sound data and information governance includes a governing body or council, a defined set of procedures, and a plan to execute those procedures. The GCIO team has developed a Data and Information Governance Framework and Maturity Assessment and artefacts which provide feedback on the maturity, and a recommended roadmap and tools to improve maturity.

EC07.04 Knowledge Mapping Knowledge mapping is the capability to identify and categorise knowledge assets within the organisation – people, processes, content, and technology.

EC07.05 Expertise Directory Management

Expertise Directory Management is a capability to minimise the amount of time spent looking for critical information and knowledge. Creating an expertise directory is a key step in knowledge management. An expertise directory allows for those in the organisation to begin to identify who in the organisation has critical expertise - "know how" that is needed to ensure that the organisation achieve its strategic goals and objectives. Every organisation has a strong expertise base -- the challenge being in finding a way to identify and tap into experts.


EC07.06 Lessons Learned Lessons Learned is the capability to review or de-brief what happened, why it happened, and how it can be done better by the participants and those responsible for the project or event. Lessons learned are based around events that were not planned or anticipated in the course of doing a piece of work, but that had an impact on the outcome of that work – they can be positive as well as negative, so lessons learned can be about making sure you repeat what worked well, as well as avoiding pitfalls. The capability cover more than just performing a review – it also embed the lessons identified in these reviews into practice, and monitor, report, and define accountability to ensure that lessons identified are followed up and embedded into future practice so that they are truly ‘learned’

EC07.07 Best Practice Transfer Best Practice Transfer is the capability to identify and learn from best practices and applying them in a new configuration or a new location. The key factor in the transfer of best practices is to make the ‘recipients of best practices’ understand the need for the implementation of best practices. Managers of the recipient organisation should focus on how to create this perception among their employees. Essentially, the transfer of best practices demands changes in performance, communication and behaviour. Therefore, the two parties involved in the exchange of best practices, ‘the source’ and ‘the recipient’ should work together on the teaching, learning and improvement process.

EC07.08 Knowledge Protocol Development

Knowledge Protocol Development is the capability to develop a protocol to proof that the knowledge received is true, the source of the knowledge is reliable, and to ensure the reliability of knowledge sent and shared.

EC07.09 Information and Knowledge Sharing / Exchange

Information and Knowledge Sharing/Exchange is the capability through which information and knowledge (namely information, skills, or expertise) is exchanged among people, communities, and organisations. Information and Knowledge sharing is important for an organisation because it constitutes a valuable, intangible asset for creating, improving, and sustaining high performance and quality of product and services. Information and knowledge sharing activities are generally supported by information and knowledge management systems. However, technology constitutes only one of the many factors that affect the sharing of knowledge in organisations, such as organisational culture, trust, and incentives. The sharing of information and knowledge constitutes a major challenge in the field of information and knowledge management.

There are several types of information and knowledge sharing: • Explicit information and knowledge sharing occurs when explicit information and knowledge is made available to be shared between entities. Explicit information and knowledge sharing can happen successfully when the following criteria are met: - Articulation: the information and knowledge provider can describe the information. - Awareness: the recipient must be aware that information and knowledge is available. - Access: the information and knowledge recipient can access the information and knowledge provider. - Guidance: the body of information and knowledge must be defined and differentiated into different topics or domains so as to avoid information overload, and to provide easy access to appropriate material. Information and knowledge managers are often considered key figures in the creation of an effective information and knowledge sharing system. - Completeness: the holistic approach to information and knowledge sharing in the form of both centrally managed and self-published information and knowledge. • Tacit information and knowledge sharing occurs through different types of socialisation. Although tacit information and knowledge is difficult to identify and codify, relevant factors that influence tacit information and knowledge sharing include: - Informal networks such as daily interactions between people within a defined environment (work, school, home, etc.). These networks span hierarchies and functions. - The provision of space where people can engage in unstructured or unmonitored discussions, thereby fostering informal networks. - Unstructured, less-structured or experimental work practices that encourage creative problem solving, and the development of social networks. • Embedded information and knowledge sharing occurs when information and knowledge is shared through clearly delineated products, processes, routines, etc. This information and knowledge can be shared in different ways, such as: - Scenario planning and debriefing: providing a structured space to create possible scenarios, followed by a discussion of what happened, and how it could have been different. - Management training. - Information and knowledge transfer: deliberately integrating systems, processes, routines, etc., to combine and share relevant information and knowledge.

Connection to ICT systems - ICT systems are common tools that help facilitate information and knowledge sharing and management. The main role of ICT systems is to help people share information and knowledge through common platforms and electronic storage to help make access simpler, encouraging reuse of information and knowledge. ICT systems can provide codification, personalisation, and electronic repositories for information and can help people locate each other to communicate directly. With appropriate training and education, ICT systems can make it easier for organisations to acquire, store or disseminate knowledge.


EC07.10 Information and Knowledge Utilisation

Information and Knowledge Utilisation is the overarching term that includes research utilisation and evidence-based practice, pertains to the use of knowledge generated through research for policy and practice decisions. It includes research, scholarly practice, and programmatic interventions aimed at increasing the use of knowledge to solve organisational, social, and economic problems.

EC07.11 Information Discovery

Information Discovery is the capability to distil the organisation’s data and information down to the most pertinent evidence pertaining to a court-related matter or compliance directive. The major information discovery steps include: - Work with subject matter expert to look at all the scenarios, processes, and projects and gather all the information assets used, produced and/or changed during those scenarios, processes, and projects. The Government Enterprise Architect team has designed an Information Discovery process that causes the GEA-NZ v3+ Data and Information Reference Model to efficiently discover information. - Managing the entire data and information asset catalogue in a manner to identify all evidence associated with specific matters to make evidence based decisions. Note: The Information Assets Catalogue template is available through the Government Enterprise Architecture team.

Outcomes The principal outcomes of having an information and knowledge management capability within an organisation are the following:

It enables a better and faster decision-making based on evidence - By delivering relevant information at the time of need through structure, search, subscription, syndication, and support, information and knowledge management environment can provide the basis for making good decisions. Collaboration brings the power of large numbers, diverse opinions, and varied experience to bear when decisions need to be made. The reuse of information and knowledge in repositories allows decisions be based on actual experience, large sample sizes, and practical lessons learned.

It makes it easy to find relevant information and resources - When faced with a need to respond to a customer, solve a problem, analyse trends, assess markets, benchmark against peers, create new products and services, plan strategy, and to think critically, you typically look for information and resources to support these activities. If it is easy and fast to find what you need when you need it, you can perform all of these tasks efficiently.

It identifies the reuse of ideas, documents, and expertise - Once the organisation has developed an effective process, you want to ensure that others use the process each time a similar requirement arises. If someone has written a document or created a presentation which addresses a recurring need, it should be used in all future similar situations. When members of the organisation have figured out how to solve a common problem, know how to deliver a recurring service, or have invented a new product, you want that same solution, service, and product to be replicated as much as possible. Just as the recycling of materials is good for the environment, reuse is good for organisations because it minimises rework, prevents problems, saves time, and accelerates progress.

It avoids redundant effort - No one likes to spend time doing something over again. But they do so all the time for a variety of reasons. Avoiding duplication of effort saves time and money, keeps employee morale up, and streamlines work. By not spending time reinventing the wheel, the organisation can have more time on being innovative.

It avoids making the same mistakes twice - If the organisation doesn't learn from their mistakes, it will experience them over and over again. Information and knowledge management allows the organisation to share lessons learned, not only about successes, but also about failures. In order to do so, the organisation must have a culture of trust, openness, and reward for willingness to talk about what we have done wrong. The potential benefits are enormous.

It takes advantage of existing expertise and experience - Teams benefit from the individual skills and knowledge of each member. The more complementary expertise the team has, the greater the power of the team. In large organisations, there are people with widely-varying capabilities and backgrounds, and there should be a benefit from this. But as the number of people increases, it becomes more difficult for each individual to know about everyone else. So even though there are people with knowledge who could help other people, they don't know about each other. Knowing what others know can be very helpful at a time of need, since you learn from their experience and apply it to your current requirements.

It communicates important information widely and quickly - Almost everyone today is an information worker, either completely or partially. We all need information to do our jobs effectively, but we also suffer from information overload from an increasing variety of sources. How can we get information that is targeted, useful, and timely without drowning in a sea of email, having to visit hundreds of web sites, or reading through tons of printed material? Information and knowledge management helps address this problem through personalised portals, targeted subscriptions, RSS feeds, tagging, and specialised search engines.

It promotes standard, repeatable processes and procedures - If standard processes and procedures have been defined, they should always be followed. This allows employees to learn how things are done, leads to predictable and high-quality results, and enables the organisations to be consistent in how work is performed. By providing a process for creating, storing, communicating, and using standard processes and procedures, employees will be able to use them routinely.

It provides methods, tools, templates, techniques, and examples - Methods, tools, templates, techniques, and examples are the building blocks supporting repeatable processes and procedures. Using these consistently streamlines work, improves quality, and ensures compatibility across the organisation.

It makes scarce expertise widely available - If there is a resource that is in great demand due to skills which are in short supply, information and knowledge management can help make that resource available to the entire organisation. Ways of doing so include community discussion forums, training events; ask the expert systems, recorded presentations, white papers, podcasts, and blogs.


It shows customers how information and knowledge is used for their benefit - Demonstrating to potential and current customers that the organisation has a widespread expertise and has ways of bringing it to bear for their benefit can help build trust and convince the customer to start or continue engaging with the organisation.

It accelerates the delivery of product and services to customers - Information and knowledge sharing, reuse and innovation can significantly reduce time to deliver product and services to a customer.

It stimulates innovation - Creating new knowledge through effective information and knowledge sharing, collaboration, and information delivery can stimulate innovation.


EC08 - Relationship Management

EC08Relationship Management

EC08.01Stakeholder Engagement

Strategy Development


Planning


Governance

EC08.04Customer Experience

Management

EC08.05Stakeholder Satisfaction

Management

EC08.06Service Level Agreement

Management

EC08.08Continuous Stakeholder

Engagement


Development

Capability Description

Relationship Management is the capability to influence and strategically engage with different stakeholders at different levels of the organisation, and external stakeholders, to ensure the success of agreed strategies and initiatives.

Relationship management can be between the organisation and:

Customers - customer relationship management

Business partners - business relationship management

Vendors - vendor management

Agencies – Specifically for government entities, the engaging with senior ICT and business leaders across government.



EC08.01 Stakeholder Engagement Strategy Development

Stakeholder Engagement Strategy Development is the capability to design a strategy and process used to engage with relevant stakeholders for a purpose to achieve strategic goals and objectives. There are five different kinds of stakeholder engagement approaches: Partnership, Participation, Consultation, Push communications, and Pull communications (see diagram).

Each approach is a valid method of stakeholder engagement, but more suited to particular stakeholder types. Pull communications are one-way and depend on stakeholders deciding to access the information. At the other end of the pyramid partnership engagement approaches give shared accountability, decision making, joint learning and actions. Stakeholder Engagement approaches: - Partnership - Shared accountability and responsibility. Two-way engagement joint learning, decision making and actions. - Participation - Part of the team, engaged in delivering tasks or with responsibility for a particular area/activity. Two-way engagement within limits of responsibility. - Consultation - Involved, but not responsible and not necessarily able to influence outside of consultation boundaries. Limited two-way engagement: organisation asks questions, stakeholders answer. - Push communications - One-way engagement. Organisation may broadcast information to all stakeholders or target particular stakeholder groups using various channels e.g. email, letter, webcasts, podcasts, videos, leaflets. - Pull communications - One-way engagement. Information is made available. Stakeholders choose whether to engage with it or not.

EC08.02 Stakeholder Engagement Planning

Stakeholder Engagement Planning is the capability to design plans and to implement the stakeholder engagement strategy and approaches.

EC08.03 Stakeholder Engagement Governance

Stakeholder Governance is the capability to bring stakeholders together to participate in the dialogue, decision making, and implementation of solutions to common problems or goals. It involves the full involvement of all stakeholders, consensus-based decision-making and operating in an open, transparent and accountable manner. Possible characteristics are: (see table on next page).

EC08.04 Customer Experience Management

Customer Experience Management is the capability to track, oversee and organise every interaction between a customer and the organisation throughout the customer's lifecycle. The goal of is to optimise interactions from the customer's perspective and, as a result, foster customer loyalty.


EC08.05 Stakeholder Satisfaction Management

Stakeholder Satisfaction Management is a critical component to the successful delivery of any project, programme or activity. Effective Stakeholder Satisfaction Management creates positive relationships with stakeholders through the appropriate management of their expectations and agreed objectives. It identifies the stakeholder, determines their influence and interest, and prioritises the engagement approach (see quadrant).

Stakeholder Quadrant

Po

wer

Keep satisfied Manage closely

Monitor Keep informed

Interest

EC08.06 Service Level Agreement Management

Service Level Agreement (SLA) Management is the capability to manage, monitor, and report on the negotiated agreements with providers, venders, 3rd parties.

EC08.07 Stakeholder Engagement Development

Stakeholder Engagement Development is the capability to develop an engagement approach for each stakeholder.

EC08.08 Continuous Stakeholder Engagement

Continuous Stakeholder Engagement is the capability to continuously engage with stakeholders according to the strategy and approach set out by the organisation.

Possible Characteristics of Stakeholder Governance

Stakeholder groups

Government Agencies

NGOs Experts Communities Peers / Suppliers (vendors, providers)

Investors Customers Employees

Group Composition

Multi -multiple stakeholder groups involved-

Mono -single stakeholder group involved-

Scope of the participants

Strategic -General business strategy-

Managerial -e.g. CR Strategy-

Operational -specific issues, e.g. health and safety-

Tools Board Multi-stakeholder initiatives

Collaboration / Partnership

Committees / Panels

Dialogue / Forums Meetings / Workshops

Focus groups / Interviews

Surveys / Polls

Level of Engagement

Empower Collaborate Involvement Consulting Information / Communication

Impact Stakeholder power

High -Develop policies, make

decisions-

Medium -Guide policies and KPIs-

Low -Issues identification,

guide reporting-

Vague -Unspecified impact-

None


Outcome

There are several outcomes of the relationship management capability is multiple depending on the specific relationship: customer, vendor, supplier, provider, business partners, 3rd parties, internal staff, agencies, etc.

The outcomes can be grouped as follows:

Encouraging an atmosphere of trust, openness and clear communication and an attitude based on working together and shared objectives.

Proactively looking for ways to improve the relationship and ensure stakeholders feel involved.

Establishing and managing an effective communication framework between all stakeholders.

Ensuring, where possible, that communications at all levels are peer to peer

Managing the resolution of disputes – resolving ‘soft’ tensions between agency and supplier, and "managing upwards" to ensure senior management are informed about issues before they escalate and can intervene as appropriate.

Establishing regular reporting procedures, formal and informal.

Organising forums, seminars, training and other information-sharing activities.


EC09 - Procurement

EC09Procurement

EC09.01Procurement Strategy

Development

EC09.02Procurement Forecasting

and Planning

EC09.03Procurement Governance

EC09.04Procurement KPI

Management

EC09.05Sourcing and Collaboration

Development

EC09.06Operational

Procurement

Capability Description Procurement is the capability to:

Contribute to the continuity of the organisation’s primary business activities

Control and reduce all procurement related costs

Reduce the organisation’s risk exposures in relation to its supply markets, and

Contribute to innovation that improves service delivery.

The 2015 BASS Procurement Capability Maturity Model (CMM) is focussed around elven areas: Strategy and Agency Outcomes, Commercial Leadership, Stakeholder Engagement, Governance, Policy and Practice, Suppliers and Providers, People, and Technology. This framework has been developed by MBIE to improve the difference capabilities of procurement within Government.


EC09.01 Procurement Strategy Development

Procurement Strategy Development is the capability to establish, maintain, and effectively operate the organisation’s total procurement function. The capacity for complex analysis of the organisation’s requirements and its major supply markets as well as how best to organise and resource procurement are required, along with the ability to guide the development of supply solutions that support the organisation’s business.

EC09.02 Procurement Forecasting and Planning

Procurement Forecasting and Planning is the capability to budget, plan and forecast the organisation's long- and short-term procurement goals. - Planning - outlines the organisation's procurement direction and expectations for the next four years. - Budgeting - documents how the overall plan will be executed month to month, specifying expenditures and funding. - Forecasting - uses accumulated historical data to predict procurement outcomes for future months or years.

EC09.03 Procurement Governance Procurement Governance is the capability to drive behaviour towards achieving the procurement goals and objectives of the organisation. Procurement Governance defines and allocates accountabilities, communications, standards and major practices, and institutional responsibilities for procurement.


EC09.04 Procurement KPI Management

Procurement KPI Management is the capability to manage procurement KPIs and set the KPI metrics. Procurement KPIs can be divided into various categories e.g. general procurement measurements, delivery performance, cost measurements, quality, inventory, and people.

EC09.05 Sourcing and Collaboration Development

Sourcing and Collaboration Development is the capability to collaborate and negotiate with different organisations which have similar business processes. To save costs, the organisations with the best function can insource the business process of the other organisation. Since all of the negotiating parties can be outsources or insources the main challenge in this collaboration is to find a stable coalition and the organisation with the best function.

EC09.06 Operational Procurement Operational Procurement is the day to day procurement operations, promotions, delivery, fix, and charges.

Outcomes Procurement capability outcomes are to:

Contribute to the continuity of the organisation’s primary business activities

Control and reduce all procurement related costs

Reduce the organisation’s risk exposures in relation to its supply markets

Contribute to innovation that improves service delivery.

There are three procurement drivers.

Effectiveness reducing the total cost of ownership of external spend using procurement techniques, such as category management, strategic sourcing and supplier relationship management.

Efficiency reducing costs from within the procurement function and procurement processes, for example, through process reengineering, deploying technology and automation.

Customer service providing best value materials and services to internal customers on time, to specification, above expectation and with social responsibility.

NZ Government:

The quality of expenditure, regulation and other interventions by government entities has a significant impact on the living standards of New Zealanders. It impacts both directly and indirectly on New Zealand's stocks of financial and physical capital, human capital, social capital and natural capital. Given the significant impact it has, the State sector needs to do the right things in the right ways at the right time and they must be affordable.

The NZ Government has set a challenge for the State sector to make more progress on a number of key results and to deliver better services within lower allowances for new spending.

Meeting this challenge will depend on focusing on government interventions, whether spending, regulation or government ownership, that have the biggest impact on New Zealanders' living standards and that have benefits that outweigh their costs to society. Keeping this focus on effectiveness and efficiency is important, regardless of the fiscal situation. As raising taxes or debt to finance government expenditure and assets has economic costs, we need to make the most of every dollar that is spent.


EC10 - Human Resource Management

EC10Human Resource

Management

EC10.01Recruitment and Skill

Strategy Development

EC10.02Resource Forecasting and

Planning

EC10.03Human Resource KPI

Management

EC10.04Human Resource

Governance

EC10.05Selection Criteria

Management

EC10.06Staff Training Criteria

Management

EC10.08Human Resource

Operations

EC10.07Workforce Capability

Development

Capability Description Human Resource (HR) Management is the capability to maximise employee performance in service of the organisation's strategic goals and objectives. HR is primarily concerned with the management of people within the organisations, focusing on policies and on systems.


EC10.01 Recruitment and Skill Strategy Development

Recruitment and Skill Strategy Development is the capability to create a strategy that sets out the guidelines for HR around what skills are needed to achieve the overall organisation's goals and objectives by finding and hiring the right people, and then training and managing them in the right way and ensuring the consistency of the process.

EC10.02 Resource Forecasting and Planning

Resource Forecasting and Planning is the capability to budget, plan and forecast the organisation's long- and short-term recruitment and skill needs.

EC10.03 Human Resource Governance

HR Governance is the capability to lead the HR function and manage related investments to: - Optimise performance of the organisation's human capital assets. - Define stakeholders and their expectations. - Fulfil fiduciary and financial responsibilities. - Mitigate enterprise HR risk. - Align the function's priorities with those of the business. - Assist HR executive decision making.

EC10.04 Human Resource KPI Management

HR KPI Management is the capability to manage HR KPIs and set the KPI metrics. HR KPIs can be divided into various categories e.g. hiring, training, skills development, loyalty and rewards, finance, and productivity.


EC10.05 Selection Criteria Management

Selection Criteria Management is the capability to develop selection criteria. These are the standards against which the organisation will measure all candidates to determine whether they have the qualifications to perform a specific job. Selection criteria are developed from the knowledge, skills, and abilities identified in job analysis and stated in the job description.

EC10.06 Staff Training Criteria Management

Staff Training Criteria Management us the capability to set out the criteria the train staff in specific skills needed to achieve the organisation’s goals and objectives. It also will help save staff hours, create more efficient production methods, and improve technical systems and other benefits.

EC10.07 Workforce Capability Development

Workforce Capability Development is the capability to develop the skills and knowledge of the workforce. This includes attributes such as flexibility, service focus, innovation skills, etc.

EC10.08 Human Resource Operations

HR operations are the capability to provide HR services, include administrative services, recruitment, job analysis, and employee relationship management. These HR practices are in place to support management and staff in their day-to-day business activities, and are important to meet the organisation's goals and objectives.

Outcomes The outcomes of a good structure HR management are:

Hiring and training the workforce - Manpower planning is one of the most important responsibilities of the HR department. HR managers devise hiring strategies for bringing in the right kind of people in their organization. They prepare their Job Descriptions which is best suited for the role in the organisation. After hiring they also plan for the employee’s induction with a well laid out training and development plans for them.

Take care of the Performance Management System - HR is responsible for keeping people feel motivated for their work. First, the task of defining an individual’s role then creates an effective feedback mechanism to help the employees to improve their skills. This helps in alignment of the organisational goals and objectives with their own personal goals. An effective PMS helps in recognition and rewarding people's performance.

Help in building culture and values in the organisation - Performance of an individual are dependent on the work atmosphere or culture that prevails in the organisation. Creating a good conducive working environment is expected from the HR department. A safe and clean work culture helps in bringing the best of an employee and creates a higher job satisfaction.

Conflict Management is also an important responsibility of HR - There can be many occasions where there is a disagreement between the employee and the employer. You cannot avoid conflicts from happening. But you can surely try and manage them. Here comes the role of the human resource department in acting as a counsellor and a mediator to sort the issues in an effective manner. The HR takes timely action so that thing does not go out of hands.


Generic Government Business Capabilities

GGC01 - Legislation and Policy Development

GGC01Legislation and Policy

Development

GGC01.01Legislation and Policy

Strategic Direction


Development Planning


Governance

GGC01.04Legislation and Policy KPI

Management

GGC01.05Policy Research

GGC01.08Legislation

Dissemination

GGC01.07Policy Advice

GGC01.06Semantic Analysis

GGC01.09Legislation and Regulation

Enforcement

Capability Description Legislation and Policy Development is the capability to set the scope, defining the problem, consultation, using evidence, to develop and improve policy. This includes project management of the development.

Acts and Legislative Instruments are administered by government agencies which are identified in the Act or Legislative Instrument. All Acts and Legislations can be found on www.legislation.govt.nz and involve all elements described in the Business Reference Taxonomy.



GGC01.01 Legislation and Policy Strategic Direction

Legislation and Policy Strategic Direction is the capability to ensure that the agency has a comprehensive policy regime in place at both a governance and organisational policy level.

GGC01.02 Legislation and Policy Development Planning

Legislation and Policy Development Planning is the capability to plan the development of legislation and policies. The Cabinet Manual summarises the basic process for developing government legislation as follows: - Decision to pursue a policy proposal requiring legislation. - Policy development, including regulatory impact analysis. - Consultation (see the CabGuide section on consultation and paragraphs 7.24-7.45). - Allocation of legislative priority. - Approval of policy proposals by Cabinet. - Preparing drafting instructions and further consultation (see paragraphs 7.48-7.49 of the Cabinet Manual). - Drafting (see paragraphs 7.46-7.47 of the Cabinet Manual). - Approval by the Cabinet Legislation Committee and Cabinet of the draft bill for introduction (see paragraphs 7.50-7.52 of the Cabinet Manual). - Reference to government caucuses and non-government parliamentary parties, as appropriate (see paragraphs 7.53-7.59 of the Cabinet Manual). - Introduction, first reading, and referral to select committee. - Consideration and report by select committee. - Remaining parliamentary stages.

GGC01.03 Legislation and Policy Governance

Legislation and Policy Governance is the capability to protect the investment Government makes on behalf of New Zealand.

GGC01.04 Policy KPI Management Policy KPI Management is the capability to manage policy KPIs and set the KPI metrics. Policy KPIs can be divided into various categories e.g. economic, legal, supporting, and voluntary incentives.

GGC01.05 Policy Research Policy Research is the capability to use analytics and advanced statistics to inform policy development and advice.

GGC01.06 Semantic Analysis Semantic Analysis is the capability to analyse of the Acts and Legislative instruments to determine applicable business rules, what if analysis, looking for inconsistencies etc.

GGC01.07 Policy Advice Policy Advice is the capability to provide policy advice to government (usually ministers) and other agencies, and within agencies on how to improve the related services delivered to New Zealanders.

GGC01.08 Legislation Dissemination Legislation Dissemination is the capability to dissemination Acts and legislative instruments to agencies and within agencies.

GGC01.09 Legislation and Regulation Enforcement

Legislation and Policy Enforcement is the capability to enforce the applicable laws and regulations.

Outcomes Legislation can have many purposes: to regulate, to authorise, to proscribe, to provide or fund, to sanction, to grant, to declare or to restrict. Legislation is regarded as one of the three main functions of government, which are often distinguished under the doctrine of the separation of powers. Those who have the formal power to create legislation are known as legislators; a judicial branch of government will have the formal power to interpret legislation (see statutory interpretation); the executive branch of government can act only within the powers and limits set by the law.

The development of legislation and policy capability serves as a central resource to the Secretary and other agency leaders for strategic planning and analysis, and facilitation of decision-making on the full breadth of issues that may arise across the government.


GGC02 - Government Customer-Centric Service

GGC02Government Customer-Centric

Service

GGC02.01Customer-Centric Strategy

Development

GGC02.04Customer-Centric Service

Planning

GGC02.05Collaboration

Planning

GGC02.06Customer-Centric Service

Governance

GGC02.07Collaborative Governance

GGC02.08Customer Satisfaction and

Measurements

GGC02.11Customer Service

Delivery

GGC02.09Customer-Centric Service Design and Development

GGC02.03Product and Services

Lifecycle Management

GGC02.10Product and Service

Delivery

GGC02.02Product and Service Strategy

Development

Capability Description The future for government ICT is envisaged as information-centric rather than the technology-centric model of today, transcending agency boundaries to deliver smarter customer-centred services and being characterised by:

Citizen and business accounts offering personalisation and customisation.

Government information and services being joined up and easy to access through common customer-centric digital channels.

Processes being defined by end-to-end boundaries from the customers’ perspectives (for example starting a new business).

Business processes being presented as services that can be consumed and aggregated for customers by other processes and parties, including partners.

Security and privacy measures being integrated into the design and adoption of all new services and technologies introduced.

Analytics providing a holistic view that better supports service planning, service delivery and evidence-based policy.

Information being open by default, sharing being widespread, encouraging knowledge creation and innovation.

ICT-enabled business systems deliver the expected benefits.

Agencies focusing on their unique business systems and buying-in more common capabilities.

Non-core/commodity ICT assets being eliminated from agency balance sheets and procured as operational ‘as-a-service’ expenses focussed on reducing unit costs over time.

Stronger central direction supported by collaborative leadership.

Highly standardised cloud computing platforms providing the majority of government’s computing resource.

Assembling and integrating being standard – there will be fewer bespoke developments.



GGC02.01 Customer-Centric Strategy Development

Customer-Centric Strategy Development is the capability to create a strategy that sets out the guidelines to create new and improve existing services that will be aligned with the overall customer-centric strategy of the NZ Government.

GGC02.02 Product and Service Strategy Development

Product and Service Strategy Development is the capability to design a strategy that will meet customer and stakeholder’s' needs now and in the future. There are two main subsets of product and service strategies: - Product and Service Diversification Strategy - This strategy is employed when an organisation's existing customers are saturated, and revenues and profits are stagnant or falling. There is little or no opportunity for growth. A product and service diversification strategy takes the organisation outside its existing business and new product and services are developed for new customers. - Product and Service Modification Strategy - This strategy is generally aimed at modernising existing product and services.

GGC02.03 Product and Services Lifecycle Management

Product and Service Life Cycle management is the capability to reduce time to market, improve product and service quality, reduce prototyping costs, identify potential opportunities and contributions, and reduce environmental impacts at end-of-life. To create successful new product and services the organisation must understand its customers. Product and Service Lifecycle Management integrates people, data, processes and business systems. It provides product and service information for organisations and their extended supply chain enterprise.

The concept of product and service life cycle concerns the life of a product and/or a service in the market with respect to business costs and benefits. The product and service life cycle proceeds through multiple phases, involves many professional disciplines, and requires many skills, tools and processes. Product and Service Life Cycle management makes the following three assumptions: - Products and services have a limited life and thus every product and every service has a life cycle. - Product and service sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller. - Products and services require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage.

The four main stages of a product and service life cycle and the accompanying characteristics are: - Market introduction stage - Growth stage - Maturity stage - Saturation and decline stage

GGC02.04 Customer-Centric Service Planning

Customer-Centric Service Planning is the capability to budget, plan and forecast the organisation's long- and short-term effort to adapt their existing product and services and to create new collaborative and customer-centric product and services.

GGC02.05 Collaboration Planning Collaborative Planning is the capability to set out a collaboration plan between different agencies to combine the intelligence to plan and fulfil customer needs and demand by using common metrics, language and firm agreements to improve efficiency for all participants.

GGC02.06 Customer-Centric Service Governance

Customer-Centric Governance is the capability to ensure the customer has an accurate perception of the product and services being delivered. It shifts the focus away from an issue driven reporting process to a holistic picture of the relationship. It ensures that customers have a clear view of the service they are being delivered - and any items materially impacting that service now and in the future. It ensures that the customer is clear about what the Government is actually doing. It has a strong analytical component – using historical and current data – to learn lessons from the past and forecast future scenarios. It is an approach which demands discipline and rigor on the part of the Government. It delivers happier customers who have more trust in the Government, lower relationship management costs for the Government (less customer service time solving customer issues) and significantly higher overall satisfaction rate. It is an approach increasingly being demanded by customers.


GGC02.07 Collaborative Governance

Collaborative Governance is a form of leadership in which the leaders effectively communicate with all sectors to achieve more than what any one sector could achieve on its own. Collaborative Governance requires support, leadership, and a forum. The support identifies the problem to be fixed. The leadership gathers the forum. Then the members of the forum collectively form an answer. Governance can employ different degrees of public consultation and participation: - Non-participation - the community is unaware of any decisions taken. - Informing - telling the community what is planned and to understand problems, alternatives and solutions. - Consultation - obtain public feedback on analysis, alternatives and/or decisions. - Collaboration - partner with the public to develop alternatives, identify preferred solutions, and make decisions - Empowerment - placing final decision-making into the hands of the public. Collaborative governance is governance with characteristics of both collaboration and empowerment.

GGC02.08 Customer Satisfaction and Measurements

Customer Satisfaction and Measurements is the capability to measure customer satisfaction. There are four key customer satisfaction measurements: - Emotional Measures - How satisfied is the customer with the received product and services? - Affective Measures - Would the customer recommend or communicate, in a positive way about the product and services it has received from the agency/Government? - Effective and Cognitive Measures - How important were these product and services to the customer? And did they satisfy their needs or resolve their issues completely? - Behavioural Measures - Will the customer reapply to receive the same product and services if they have the same needs or issues to resolve or will they try to find another solution?

GGC02.09 Customer-Centric Service Design and Development

Customer-Centric Service Design and Development is the capability to design product and services that meet customers’ current needs yet are flexible enough to anticipate future ones.

GGC02.10 Product and Service Delivery

Product and Service Delivery is the day to day operational capability to deliver product and services to the customers. This includes operations, promotions, delivery, fix, and charges.

GGC02.11 Customer Service Delivery

Customer Service Delivery is the capability to provision services to customers before, during, and after a purchase a product or applying for a service.

Outcomes A customer-centric government has a very granular view of the needs and effort of their customers and the different life/business events which trigger interaction with the government.

The ability to understand those needs and life/business events are critical to developing a customer-centric government.

A deep understanding of customers’ needs and life/business events are reflected in budget priorities, choice of channels and the overall design and delivery of services.

Services are designed around needs and life/business events as opposed to customer needs being fitted to a set of services.

A customer-centric government can clearly articulate the public value outcomes of their decisions.

The focus is on outcomes as opposed to outputs across all aspects of the public value equation: efficiency to manage within tight budgets, quality of services, equity/inclusion and trust in government through security and privacy of information.

A customer-centric government are very good at listening and connecting the dots.

This is achieved through regular two-way communication and use of social media to understand the big issues and trends that have an influence on customers.

Listening and identifying both symptoms and opportunities becomes the norm.

A customer-centric government is focused on “joined up” operations.

They focus relentlessly on simplification, integration and orchestration of multiple government agencies to provide seamless services to the customer.

They are all about collaboration, and about creating and sustaining an ecosystem that is best positioned to design/deliver services.

A customer-centric government helps customers to solve their problems.

They engage with customers from their first interaction with the government till the end of their life/business event journey with the government.


GGC03 - Government Analytics

GGC03Government Analytics

GGC03.01Government Analytics Strategy

Development

GGC03.02Government Analytics

Planning


Governance

GGC03.04Government Analytics KPI

Management

GGC03.05Government Analytics Design

and Development

GGC03.06Continuous Government Analytics Improvement


Reporting

Capability Description

Government Analytics is the capability to perform sophisticated data analyses, draw substantive conclusions and communicate results for the purpose of improving the functioning of the Government.


GGC03.01 Government Analytics Strategy Development

Government Analytics Strategy Development is the capability to design a strategy to use analytics to enable and drive performance and evidence-based decision making to achieve government goals and objectives.

GGC03.02 Government Analytics Planning Government Analytics Planning is the capability to set out a plan for analytics design, implement those analytics, and set the outcome and timeline to provide those analytics.

GGC03.03 Government Analytics Governance

Government Analytics Governance is the capability to address issues surrounding the policies and processes of Government Analytics. These issues include human capital, development, and integration of analytics into the broader organisation, legal and regulatory concerns, and the issues around Open Data Government.

GGC03.04 Government Analytics KPI Management

Government Analytics KPI Management is the capability to manage Government Analytics KPIs and set the KPI metrics. Government Analytics KPIs can be divided into various categories: - Audience - does the analytics fit the audience? - Traffic Sources - do the customer find the analytics easily? - Tracking - Can we easily track the use of the analytics? - Goal and Objectives - Do the analytics meet the goals and objectives of the Government and their customers? - Cost Analysis - Does the cost of the analytics outweigh the benefits? For Government and customers?

GGC03.05 Government Analytics Design and Development

Government Analytics Design and Development is the analysis, design, and development of Government analytics that meet the needs of the Government and the customers.


GGC03.06 Continuous Government Analytics Improvement

Continuous Government Analytics Improvement is the capability to produces small and big improvements to the Government Analytics content, visualisation, usefulness, timeliness, etc.

GGC03.07 Analytics Reporting Analytics Reporting is the capability to report on the analytics at the right time, to the right audience, via the right channels, and with the right visualisation methods.

Outcomes Having a well optimised Government Analytics capability will give the citizens -individuals and businesses- better information that is presented in a more effective way which results in better decision making, reporting and insight. New collaboration tools enable governments to transform relationships with citizens, creating an environment where efficiency and management by performance are the norm.

The outcomes of Government Analytics for government entities are:

More informed policy decisions - By identifying trends and other insights, agencies improve their decision-making. By doing it with streaming analytics tools and other technologies to process data generated in real time, the decisions come more quickly. Without this capability decision-makers may revert back to merely guessing or decision avoidance altogether.

Improved mission outcomes – Government Analytics brings with it the ability to predict results and model scenarios based on the data.

Identify and reduce inefficiencies - Through Government Analytics the agencies can see where they are taking unnecessary steps or where they can reduce cost by collaborating.

Eliminate waste, fraud and abuse - By identifying inefficiencies, agencies can potentially identify and eliminate fraud and abuse.

Improve productivity - Finding information to deliver better services and make decisions that support the mission.

Boost ROI, cut total cost of ownership (TCO) - Government Analytics improve making better use of data that IT systems generate, improve the return on IT investments. By potentially consolidating data silos and analytics tools, agencies can reduce the TCO for their infrastructures.

Enhance transparency and service - Proper handling and processing of Government Analytics allows agencies to make data available not only to public- and private-sector partners, but also to the public. This enables citizens to understand what information the government collects. Processing and sharing Government Analytics also allows agencies to offer information as a service, whether it’s online tax records, census information, weather data or more.

Reduce security threats and crime - Government Analytics is key to helping police, security officials, intelligence analysts and others pinpoint patterns and other hidden information to help identify specific threats.


Behaviour Capabilities

Customer Centric

Capability Description To deliver customer-centric services requires an understanding of the needs and expectations of customers – placing customers at the core of our business - recognising that needs and expectations change depending on the customer’s particular circumstances. Putting the customer at the centre of service design is crucial, and is at the heart of what is expressed in Better Public Services Results 9 and 10. A customer-centric organisation must have a culture that is designed to support customers in their endeavours and provide them with a great experience as they are working towards their goals. The outline and the goals to create a customer-centric organisation must come from executives and leaders. Performance is appraised in accordance with Customer Success. Here are the key behaviours that represent such an organisation:

How to build a customer-centric culture: o Define what customer success looks like. o Understand customer’s life/business event journeys with government as a whole. o Refine operating models to enable customer centricity. o Align technologies and processes to support and optimise customer engagement. o Measure the impact of changes to the customer’s success. o Measure the impact on the customer success with the products and/or services the organisation provides. o Transform culture at all levels. o Integrate disparate business unit cultures. o Focus on development around business targets and behaviour change. o Incorporate customer success as a key metric for performance. o Ensure customer‘s feedback is dealt with through formal processes (e.g. incident vs. problem “root cause”).

Commitment to customer success. o Engage with customers from their first interaction with the government. From a customer’s point of view they interact with the government, not an agency. o Collaboration between agencies is crucial to the success of the customer. Government seen as one organisation. o Be proactive in helping the customer achieve their goals. o Provide customers with relevant support that help them complete their goals and engagement with the government. o Keep customers informed with the progress. o Contact the customer if they need to undertake an action or provide information. o Never close cases till the root cause and all related issues are resolved, all options are reviewed and analysed, and the customer is notified and has acknowledged of the closing of the case. o Listen to the customer’s feedback and act on it. o Make every contact with a customer an opportunity to influence their experience.

Outcomes A customer-centric government has a very granular view of the needs and effort of their customers and the different life/business events which trigger interaction with the government.

o The ability to understand those needs and life/business events are critical to developing a customer-centric government. o Key questions:

What are the customers’ needs to interact with the government? How are these needs changing? What are the live events that trigger the need for customers to interact with government? How can we help them with their life/business event journey?


What those customer success look like for every of those life/business event?

A deep understanding of customers’ needs and life/business events are reflected in budget priorities, choice of channels and the overall design and delivery of services. o Services are designed around needs and life/business events as opposed to customer needs being fitted to a set of services. o Key questions:

Which customer’s needs and life/business events are being served? Who is being left out of the service delivery equation? What are the implications? Does it matter to those customers if they are not being served? Why?

A customer-centric government can clearly articulate the public value outcomes of their decisions. o The focus is on outcomes as opposed to outputs across all aspects of the public value equation: efficiency to manage within tight budgets, quality of services, equity/inclusion and trust in

government through security and privacy of information. o Key questions:

How does it create value to the customer? Does it save time, cost less, provide better service? How will quality of the service be met? Is it secure? How is customer information privacy being maintained? What metrics will indicate that outcomes are being delivered?

A customer-centric government are very good at listening and connecting the dots. o This is achieved through regular two-way communication and use of social media to understand the big issues and trends that have an influence on customers. o Listening and identifying both symptoms and opportunities becomes the norm. o Key questions:

What is the feedback from the customer? How can we inform customers of new or changes to the services? What trends on social media indicate an underlying issue? Can dots be connected to predict issues before they occur? Can success be accelerated?

A customer-centric government is focused on “joined up” operations. o They focus relentlessly on simplification, integration and orchestration of multiple government agencies to provide seamless services to the customer. o They are all about collaboration, and about creating and sustaining an ecosystem that is best positioned to design/deliver services. o Key questions:

How can we get the best minds to work on this problem? How can we engage customers directly and include them in the process? Can we get the private sector to bring their knowledge from other industries? How do we best align our own processes and structure to deliver the service? Should the service be delivered by in-house resources or is a partner better positioned to deliver?

A customer-centric government helps customers to solve their problems. o They engage with customers from their first interaction with the government till the end of their life/business event journey with the government.


Collaborative

Capability Description Collaboration is a strategy—a way to improve the productivity of people and teams and accelerate the flow of information and the delivery of products and services. A customer centric, collaborative service delivery, and information sharing government needs continuous innovation. Innovations emerge in network interaction where diverse groups and individuals share complementary knowledge. Collaboration capability is a fundamental to leverage complementary knowledge.

Collaboration comprises of four core components:

People and culture

Governance and structure

Managing and leveraging relationships

Systems and processes

For collaboration to become core practice each of these must be addressed and be successful, this means that organisations may need to review their operational methods. A set of competencies and capabilities are necessary for effective collaboration. Here is a summary of core collaboration competencies/capabilities and characteristics grouped into four fields:

Getting things done through others: o Communication skills o Relationship skills o Build and maintain o Nurturing o Leadership skills o Process catalyst o Group Process skills o Change Management skills o Negotiation skills (interest based) o Deal constructively with conflict

Analysis and planning o Listening and learning o Problem assessment o Strategic planning o Strategic relationship building o Work planning o Performance measurement and evaluation o Alignment of top down and bottom up processes

Driving the process o Vision setting o Resources o Linking and leveraging relationships o Getting ‘buy-in’ from members o Energise and mobilise o Building coalitions o Modelling elaborative practice o Community building o Managing relationships/ expectations


o Assignment of tasks and people

Personal attributes o Able to ‘read’ interactions and exchanges o Trustworthy o Sense of humour o Empathy (step in shoes) o Flexibility o Patience o Perseverance o Commitment o Cooperative spirit o Strong personal presence o Politically astute/savvy

Outcomes A good collaborative team has the ability to mobilise and energise others to create a common vision to solve problems. They have a mixture of skills: they facilitate the work of others, can read a situation as it unfolds and are instinctively resourceful in that they can identify and tap into the array of assets held by members. Good collaborators listen and take time to learn about the problem before launching into solutions. In so doing, they ‘step into others’ shoes’ and try to appreciate the various perspectives and experiences of members.

A good collaborative team can identify and constructively and group facilitation skills and are capable of big picture thinking, modelling collaborative behaviour and can coach others to work in more collective styles. They can build coalitions around issues by identifying the right mix of people to come together and by subtly these relationships to achieve outcomes. Importantly, they know when to exercise ‘political savvy’, to identify and understand the internal and external politics that may impact on the work of the collaboration. They can align top-down policies and bottom-up issues, know who to include in the collaboration, and can gain the support of people who can legitimise the effort.

Decision Making

Capability Description Decision making capabilities support the achievement of the government, sector, and agency’s goals and objectives. There are important steps to making a good decision:

Identify the decision to be made as well as the objectives or outcome you want to achieve.

Gather as many facts and as much information you can to assess your options.

Brainstorm and come up with several possible choices. Determine if the options are compatible with the organisation’s values, interests and abilities.

Weigh the probabilities or possible outcomes. In other words, what's the worst that can happen? What will happen if I do A, B or C and can we live with the consequences?

Make a list of the pros and cons. Prioritize which considerations are very important to you, and which are less so. Sometimes when you match the pros against the cons you may find them dramatically lopsided.

Solicit opinions and obtain feedback from those you trust or have had a similar situation to contend with. There may be some aspects you haven't thought about.

Make the decision and monitor the results. Make sure you obtain the desired outcome.

Points to consider:

You can never know in advance whether a decision will be the correct on, therefore, you must be prepared to take risks.

Mistake must be viewed as an opportunity to learn what didn't work and why (Lessons Learned).

You might discover in hindsight situations that may have affected your decision had you known about them earlier. This is normal and typical but should not stall your decision-making process.


If you've done everything you can to make a good decision and still can't make up your mind, do not delay making an important decision for fear that you don't know enough or will make the wrong choice.

Sometimes people become so paralyzed with the fear of making a wrong decision that they panic and lose sight of what they're trying to accomplish. This hinders making any decision.

Second-guessing undermines what you're trying to accomplish. Once you've made the decision, let the chips fall where they may. At the very least, you will have learned important lessons.

Outcomes Decision making is a vital component of the business. Decisions that are based on a foundation of knowledge and sound reasoning can lead to long-term prosperity. Decisions that are made on the basis of flawed logic, emotionalism, or incomplete information can quickly put a business out of commission. Making choices must be done in a timely fashion, for as most people recognize, indecision is in essence a choice in and of itself—a choice to take no action. Ultimately, what drives business is the quality of decisions, and their implementation.

Outcome Driven

Capability Description Outcome Driven includes innovative, creative, result driven…

Outcome driven capability is focussed on getting to what is relevant in a short amount of time, allowing agencies to respond rapidly to any technology changes, new trends, change in customer needs and behaviours, etc. Outcome driven capability defines system level outcomes centred on citizens and New Zealand Inc. It aligns stakeholder needs with requirements, provides data analytics and proof of concepts to make better decisions, and delivers pilots, tests, PoCs, and solutions quickly, accelerating time to value for the customers.

Outcome driven capability entails:

Clarifying and aligning specific business outcomes and results that are required to achieve goals and objectives

Approach can be quickly adjusted to handle disruptions.

Demonstrates tangible business value rapidly by means of pilots, tests, Proof of Concepts, etc.

Maximum sharing, reuse, and consolidation of resources.

Outcomes Outcome driven capability is agile and delivery focussed, this enables agencies to quickly make better decisions on the technology, information, process, organisational structure, and budget needed to complete government, sector, and agency’s goals and objectives and to respond to changes rapidly without derailing any ongoing programmes or projects.

Self-Managing

Capability Description The capability of self-management is a substitute of leadership. Individuals manage their own behaviours by setting personal standards, evaluating their performance in terms of these standards, and by self-administering consequences based on their self-evaluations. Specific techniques such as self-observation, goal specification, cueing strategies, incentive modification, and rehearsal can be used to exercise self-management behaviour. Organisational leaders help team members develop self-management skills. The characteristics of self-management are:

Foundational o Be willing to develop and apply new skills o Show commitment to completing work activities effectively


o Look for opportunities to learn from the feedback of others

Intermediate o Adapt existing skills to new situations o Show commitment to achieving work goals o Show awareness of own strengths and areas for growth and develop and apply new skills o Seek feedback from colleagues and stakeholders o Maintain own motivation when tasks become difficult

Adept o Look for and take advantage of opportunities to learn new skills and develop strengths o Show commitment to achieving challenging goals o Examine and reflect on own performance o Seek and respond positively to constructive feedback and guidance o Demonstrate a high level of personal motivation

Advanced o Act as a professional role model for colleagues, set high personal goals and take pride in their achievement o Actively seek, reflect and act on feedback on own performance o Translate negative feedback into an opportunity to improve o Maintain a high level of personal motivation o Take the initiative and act in a decisive way

Highly Advanced o Promote and model the value of self-improvement and be proactive in seeking opportunities for growth o Actively seek, reflect and integrate feedback to enhance own performance, showing a strong capacity and willingness to modify own behaviours o Manage challenging, ambiguous and complex issues calmly and logically o Model initiative and decisiveness

Outcomes Self-management capability shows drive and motivation, a measured approach and a commitment to learn and contribute.


Competency Capabilities

Capability Description The New Zealand Government is adopting SFIA as its IT competency framework. Government has clear ambitions and bold targets to improve Better Public Services (BPS).

Departments are responding through targeted interventions across ten BPS Results, and internal transformation programmes to strengthen their agility and responsiveness to their customers. ICT functions are adopting new business-led Target Operating Models (TOM) to enable this transformation. These new TOMs will drastically transform the nature of skills required to deliver to this new future, in an already fast-moving ICT environment with many scarce and specialist capabilities.

To deliver to departments’ business and ICT outcomes, it is important that the prioritisation of system capability interventions is timely, in order to get the right people, in the right place, at the right time.

Outcomes SFIA will:

Provide common language o Common approach to workforce segmentation o Skill-based and standardised job descriptions o Organisational and system comparability o Internationally recognised language

Enable gap assessment o Assessment of skills o Current state clarity o Forecasting for future needs o Gap analysis of skills and capability

Inform talent management o System analysis o Prioritisation of system interventions o Clear career pathways o Movement and retention of talent across the system

Create a positive and productive workforce


Appendix A - References

Below a list of all the defences that were used to create the Enterprise Business Capabilities:

Business Capability Reference

EC01 - Strategy and Planning

The EC01 - Strategy and Planning capability is based on the Strategic Management Maturity Model (SMMM) from the Strategy Management Group, US. The SMMM contains assessments of performance along eight different dimensions of strategic management: - Leadership - Culture and values - Strategic thinking and planning - Alignment - Performance measurement - Performance management - Process improvement - Sustainability of strategic management

EC02 - Change Management The EC02 – Change Management is based on the Queensland Government - Change management best practice guides who help states and agencies in their change management. http://www.psc.qld.gov.au/publications/subject-specific-publications/assets/change-management-best-practice-guide.pdf

EC03 - Financial Management The reference here is Wikipedia which has regularly been updated since 2007 by the Financial community.

EC04 – Enterprise Risk Management (ERM)

The EC04 – Enterprise Risk Management (ERM) is based on the ISO 31000.

EC05 – Communications The reference here is the head of Communications at Statistics NZ and DIA.

EC06 – ICT Management The EC06 – ICT Management is based on Information Technology Infrastructure Library (ITIL). ITIL is a set of practices for IT Service Management (ITSM) that focuses on aligning IT services with the needs of business. ITIL underpins ISO/IEC 20000 (previously BS15000),

EC07 – Information and Knowledge Management

The reference here is Wikipedia which has regularly been updated since 2011 by the Information Management community.

EC08 – Relationship Management

The EC08 – Relationship Management is largely based on the Victoria Stakeholder Engagement Framework. http://www.education.vic.gov.au/Documents/about/programs/partnerships/stakeholderengagement11.pdf

EC09 – Procurement The reference here is the head of Procurement of MBIE and based on the 2015 BASS Procurement Capability Maturity Model.

EC10 – Human Resource Management

The EC10 – Human Resource Management is based on the HRM Standard 3.4. http://hrcouncil.ca/resource-centre/hr-standards/documents/HRC-HR_Standards_Web.pdf

http://www.psc.qld.gov.au/publications/subject-specific-publications/assets/change-management-best-practice-guide.pdf

http://www.education.vic.gov.au/Documents/about/programs/partnerships/stakeholderengagement11.pdf

http://hrcouncil.ca/resource-centre/hr-standards/documents/HRC-HR_Standards_Web.pdf


Appendix B – Mapping Examples

Business Capabilities are mapped onto the four core dimensions of GEA-NZ v3+ -Business (B), Applications and Software Services (A), Data and Information (D), and Infrastructure (I)-, and onto the skills (S).

Each mapping can have the following indication: P The business capability produces or provides the B/A/D/I/S U The business capability uses or utilises the B/A/D/I/S I The business capability influences or impacts the B/A/D/I/S PU The business capability produces/provides and uses/utilises the B/A/D/I/S PI The business capability produces/provides and influences/impacts the B/A/D/I/S UI The business capability uses/utilises and influences/impacts the B/A/D/I/S PUI The business capability produces/provides, uses/utilises, and influences/impacts the B/A/D/I/S

The tool also provides a heat map that can be used for fact based decision-making4

on change or transformation programmes. It shows:

Which business functions are used a lot by different capabilities and therefore are of high importance that they are as efficient as possible.

The impact on capabilities if the organisation wants to update or replace an application.

Where information is produced and how many capabilities use that information asset.

What are the critical infrastructures of the organisation

What skills are needed

This approach identified the need for common ICT capabilities and the digital investment strategy of the NZ Government.

The business capability research, description, and GEA-NZ mapping has identified a lot of capability touch points and hot spots, which indicate opportunities for sharing and re-using of capabilities.

Below you can find examples of the mapping. The tool -which has the mapping of the generic capabilities-, can be requested through the Government Enterprise Architecture team.

4

See some examples in Appendix D


Example of a mapping of Capabilities (GEC01) and Business Functions (B5)

Example of a mapping of Capabilities (GEC01) and Application and Software Services (A1-A3)


Example of a mapping of Capabilities (GEC01) and Data and Information (D1.01-D2.02)

Example of a mapping of Capabilities (GEC01) and Infrastructure (I1-I4)


Example of a mapping of Capabilities (GEC01) and Skills

Example of a Heat map of the Business Functions


Example of a Heat map of the Application and Software Services

Example of a Heat map of the Data and Information


Example of a Heat map of the Infrastructure

Example of a Heat map of the Skills


Appendix C – Generic Business Capability Maturity Model

The Generic Business Capability Maturity Model tool can be requested through the Government Enterprise Architecture team.

Why use a Business Capability Maturity Model?

Without a model of how an organisation works, which functions it needs, and how those functions interact, it is difficult to lead efforts to improve. This maturity model gives you an understanding of discrete elements in the organisation and helps in decision-making of what, where improvements are needed and how improvement might be achieved.

Top 6 benefits of adopting this Generic Business Capability Maturity Model

Consistency

Provide an approach that enables diverse organisations to drive out real benefits in terms of dramatically improved predictability and consistency. Whilst any or all of the above factors may drive an organisation’s initial interest in the maturity model, the key benefit from implementing the model that executives focus on is consistency in delivery.

Cost Saving

Drive process improvement, deliver real cost savings such as earlier and more effective error detection, and hence reduced cost of remediation, more effective management of change so you spend less on re-work, reductions in schedule variability and increased cost predictabilities may drive an organisation’s initial interest in the maturity model, the key benefit from implementing the model that executives focus on is consistency in delivery.

Self-Improvement

There is also the aspect of self-improvement. Organisation will be able to use the Generic Business Capability Maturity Model as a way of differentiating themselves locally and by achieving a level of maturity will have naturally improved their processes which will make them more effective. Organisations are adopting the maturity model as an enabler to enhanced performance.

Market Demand

Organisations are utilizing the maturity model for best practices and reaping the benefits of it and to best meet the customer’s demands.

Subcontractors providing custom services to companies creating solutions for the federal government should either themselves be following the maturity model or be covered by their client. All the parts of the product delivered to the government should be following the maturity model somewhere in the supply chain.

Performance Demand

Improve the performance of the existing organisational standards, processes and procedures and NOT to redefine or them. The maturity model is meant to help organisations improve on their “capability” to consistently and predictably deliver the products and services their customers want, when they want them and at a high quality.

The model can be applied to create a process improvement solution appropriate to the context of each unique organisation and can provide a path for an organisation to achieve its performance goals.

Process Improvement

Deliver a framework to standardise processes, ensuring that the business’s best practices are captured, shared and adopted so that you can move staff around the organisation and leavers won’t take business critical information away with them.


The Questionnaire contains 34 questions and maturity levels categorised into eight focus areas:

Governance

People and Culture

Technology and tools

Process

Sourcing

Relationship Management

Performance

Information

Characteristics of the Maturity Levels

The maturity levels are based on the globally accepted maturity levels:

Level 1 Initial At the initial level capabilities are ill defined, disorganised, even chaotic. Success is likely to depend on individual efforts, and is not considered to be repeatable, because the capability would not be sufficiently defined and documented to allow them to be replicated.

Level 2 Repeatable At the repeatable level, basic capability techniques are established, and successes could be repeated, because the requisite capability would have been made established, defined, and documented.

Level 3 Defined At the defined level, an organisation has developed its standardised capability practice through greater attention to documentation, standardisation, and integration.

Level 4 Managed At the managed level, an organisation monitors and controls its capability processes through data collection and analysis.

Level 5 Optimising At the optimising level, the capability is constantly being improved through monitoring feedback from current practices and introducing innovative practices to better serve the organisation's needs.


The Analysis sheet will provide you with:

Radar chart to give you an overall view of the capability

A Highest and Lowest Score

And a score per Focus Area and Topic together with the recommended next steps

Note: It is not mandatory to use this maturity model if there already exist a standard maturity model for the capability.


Appendix D – Business Capability Visualisation Examples Here are a few examples how the mapping could be visualised to present to the business.

The first two examples show which business services and information the business capability uses from other capabilities or external parties, which skills are needed, which technologies (applications and infrastructure) are used, and which services and information that specific capability provides.

Operational Procurement


Data and Information Governance


The following examples show how you can get insight into the skills that are needed, the capabilities that are involved in for a certain service, and which capabilities use a specific application.

Capability Why the capability needs accounting skills

Business Strategy Development Accounting skills needed to do the math necessary to handle budget.

Outcome Management Accounting skills needed to deal with the budget side of the strategic approach to ensure that initiatives are feasible.

Business Performance Management Accounting skills needed to set the financial measures.

Transformation Strategy Development Accounting skills needed to provide financial facts and figures.

Benefit Management Accounting skills needed to calculate the financial benefits

Requirements Management Accounting skills needed to do the math necessary to handle budget.

Financial Strategy Development Accounting skills needed to create the financial strategy.

Financial Forecasting and Planning Accounting skills needed to do forecasting and financial planning.

Financial Governance Accounting skills needed to create a governance around financials.

Financial Control Accounting skills needed to identify the controls around financials.

Financial Auditing Accounting skills needed to be part of the auditing.

Financial Operations Accounting skills needed to do the financial operations.

Business Impact Analysis Accounting skills needed to do the financial impact analytics.

Internal Communication Strategy Development Accounting skills needed to provide financial facts and figures.

External Communication Strategy Development Accounting skills needed to provide financial facts and figures.

Brand Strategy Development Accounting skills needed to provide financial facts and figures.

Communication Operations Accounting skills needed to provide financial facts and figures.

ICT Strategy Development Accounting skills needed to provide financial facts and figures.

ICT Planning Accounting skills needed to make sure the planning is financial feasible.

Information and Knowledge Planning Accounting skills needed to make sure the planning is financial feasible.

Stakeholder Engagement Planning Accounting skills needed to make sure the planning is financial feasible.

Procurement Strategy Development Accounting skills needed to provide financial facts and figures.

Recruitment and Skill Strategy Development Accounting skills needed to provide financial facts and figures.

Legislation and Policy Strategic Direction Accounting skills needed to provide financial facts and figures.

Legislation and Policy Development Planning Accounting skills needed to make sure the planning is financial feasible.

Customer-Centric Strategy Development Accounting skills needed to provide financial facts and figures.

Product and Service Strategy Development Accounting skills needed to provide financial facts and figures.

Customer-Centric Service Planning Accounting skills needed to make sure the planning is financial feasible.

Collaboration Planning Accounting skills needed to make sure the planning is financial feasible.

Government Analytics Strategy Development Accounting skills needed to provide financial facts and figures.

Government Enterprise Architecture of New Zealand · Government Business Capability Model v2.0 Page...

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Transcript of Government Enterprise Architecture of New Zealand · Government Business Capability Model v2.0 Page...