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Priority five

Develop organisational capacity to improve productivity

During 2007/08 the Corporation:

  • designed and implemented leadership, learning and development programmes
  • improved Board governance practices for effective Crown entity stewardship
  • introduced new systems, processes and tools
  • reviewed the Corporation's financial governance structure
  • reviewed the documentation of Board processes.

This priority focuses on enhancing the skills, knowledge and capability of the Corporation's staff. The Corporation recognised that its operating model needed to be more customer-focused to provide enhanced service delivery to tenants and other customers. The operating model also needed to consider future development of staff and management, systems, services and support. The model introduced is geared to better deliver on strategic priorities and services to customers. The key performance indicators under this priority will enable this to happen.

The financial costs of this priority can be found on this page.

What was achieved

Staff satisfaction

Staff satisfaction surveys provide a broad overview of the thoughts of staff but are less robust in determining areas of organisational strength and areas that need improvement. For this reason the Corporation decided early in the 2007/08 financial year not to proceed with the staff satisfaction survey. Instead it was decided to conduct an employee engagement survey. The survey looks beyond staff satisfaction and addresses the sources of employee engagement, including the level of loyalty, pride and ownership that a person feels toward his or her organisation. Research indicates that organisations with higher levels of employee engagement also experience higher levels of stakeholder/customer engagement, lower staff turnover, higher productivity and fewer safety incidents.

The measure was to have more than 70 percent staff satisfaction as measured by an annual staff satisfaction survey. This was not measured as the Corporation decided early in 2007/08 to use an alternative tool.

The high-level survey results were made available in September 2008. These results will assist the Corporation to identify key organisational development priorities. The results will also allow the Corporation to compare and benchmark its level of engagement with high-performing organisations.

The Nexus data warehouse project

The data warehouse project will improve access to high quality data and provide a single source of accurate information.

The measure was to develop and implement the Nexus data warehouse project. This measure was achieved. Work continues to define and meet business requirements as the potential of this strategic information system becomes more widely known. An inter-dependent project has also been initiated to help improve data quality. This project includes continued training for users and formation of a key-user group.

The corporate financial governance project

A review of the Corporation's financial governance was carried out with the Department of Building and Housing and the Treasury. The objectives of the review were to:

  • improve the transparency and accountability of funding arrangements
  • assess the appropriateness of the current financial governance structure
  • develop an optimal financial governance structure that will be sustainable for stakeholders
  • present a realistic plan to ensure a smooth and successful implementation to the recommended optimal structure, including an appropriate phasing, where warranted.

The measure was to complete the corporate financial governance project. This measure was achieved. The report identified required attributes of an optimal financial governance framework. The recommendations in the report and the detailed work streams are to be implemented during the 2008/09 financial year.

Staff turnover

As at 30 June 2008, the Corporation employed 1,051.3 fulltime equivalent staff. Of these, 61 percent were women and 39 percent men. Of the164 managers, 34 percent were women and 66 percent men.

Table 4: Fulltime equivalent employees by business group as at 30 June 2008

Business group Fulltime equivalent
Asset Programmes 83.4
Corporate Services 101
Operations Group 734.9
Organisational Development and Communications 30.5
Advisory and Assurance 30.6
Strategy, Policy, Research and Evaluation 53.3
Executive Team/Chief Executive 9
Hobsonville Land Company 6.6
Tamaki Transformation Project 2
Total 1,051.3

Source: Organisational Development, June 2008

The measure was to achieve a turnover rate of 10-15 percent. This measure was not achieved. Staff turnover was 16 percent, up from 15.13 percent in 2006/07. This reflects the tight employment market. Information available from departing employees suggests the majority of staff chose to make a change in their employment for career development or personal reasons. The Corporation has developed a national career progression framework to help improve retention. The framework will provide high performing staff with the opportunity to advance their careers within the Corporation.

Public trust and confidence

The Research New Zealand Public Sector Trust and Confidence Poll is undertaken quarterly, as part of Research New Zealand's omnibus survey. This survey is based on a nationally representative sample of around 500 New Zealanders, aged over 15.

The measure was to achieve a result of 52 percent confidence by the public and 75 percent knowledge about the Corporation. This measure was not achieved. The results showed 51 percent of the public have full trust and confidence in the Corporation, and 72 percent of participants know a reasonable amount about what the Corporation does. The Corporation accepts it will take time for the positive changes from the new operating model to deliver sustained improvement to these two measures.

Management development programme

Effective leadership is the primary determining factor in how an employee views their work, their ongoing commitment to an organisation's overall strategy, and how they conduct themselves on a day-to-day basis. The Corporation is ensuring its managers are competent in how they manage staff, actively model the Corporation's values and behaviours and lead activity in a manner that enhances the Corporation's reputation as a good employer.

The measure was to develop and implement a management development programme. This measure was achieved.

Competency based learning and development system

Increasingly, Corporation staff are looking for greater opportunities to learn and develop. The Corporation aims to support this through the delivery of competency based learning that will develop them for their current roles and also for the future.

The measure was to design and implement a competency based learning and development system. This measure was achieved.

Review of the documentation of Board processes

Effective Crown entity stewardship provides a clear direction and leads to a well-informed work plan for the Crown entity over the planning timeframe. Board decision-making provides the foundation for the Corporation's organisational strategy and service delivery measures.

The measure was to review documentation of Board processes, including delegations, for consistency with the Crown Entities Act 2004. This measure was achieved in part, through training and presentations to the Board about the legislative requirements of the Crown Entities Act and other legislation. The charters of Board subcommittees were also reviewed.

Looking ahead

The work completed under this priority has established strong foundations for a shift towards a people-driven, outcomes-focused organisation. The Corporation will be more responsive to the needs and aspirations of New Zealanders. To achieve this change, a framework will be developed to help improve performance and deliver services more efficiently and effectively. A review of current baseline performance and an external performance assessment by an independent evaluator will be carried out in 2009/10.

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