HOW WE WORK

The Department is developing its capability and capacity to be more efficient and effective, and to be more targeted in order to lift labour market performance. In doing so, we have developed a new operating model and prioritisation approach, and we are continuing to work on measuring our performance.

New operating model

As a result of trying new approaches to address various issues that have arisen in the past two years, the Department questioned its existing model of operation. In doing so, we recognised the need to change the Department’s operating model in order to achieve its outcome of productive work and high-quality working lives, and to fulfil its purpose of creating value for stakeholders by making New Zealand a world leader in workforce and workplace performance.

The Department will achieve its aims through the dynamic interaction and application of knowledge, influence and service provision, as illustrated in Figure 3.

FIGURE 3 – DEPARTMENT OF LABOUR OPERATING MODEL

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Although the model has been created at a time when labour market participation is high, it should also be able to ensure the Department can respond to varying labour market conditions, monitoring changes and their impacts through evaluation, feedback and knowledge processes.

By increasing our knowledge and monitoring changes in the labour market, we will be better placed to anticipate, respond and adapt to current and future requirements, which will provide the optimal service mix and create the most value for New Zealand.
The operating model is currently being used to review how the Department delivers services and to assess the value of this work to the economy, industry, workplaces and the workforce.

It requires the Department to continually evaluate the effectiveness and efficiency of what it does to achieve its goals. This work has led to the development of a prioritisation framework to guide decision-making at all levels of the organisation about what, and how much, we should or should not be doing.

Prioritisation

The Department is improving its ability to prioritise its work and flexibly manage its resources to deliver the most value to its stakeholders, particularly in terms of excellent workforce and workplace performance.

A new approach to prioritisation is taking shape, which should be finalised in late 2006. It looks at:

whether there is a role for government in relation to the work
whether the Department is best placed to deliver or lead it
what the contribution would be to the Department’s goals and outcomes
the level of value creation for stakeholders and across government
the relative value versus the relative effort and risk involved
whether the activity will build our knowledge, influence and service delivery capability
whether the activity will facilitate an integrated, connected Department.

Measuring performance

Measuring outcomes

The Department has made some progress in outcomes measurement, and work is continuing. Having refined our goals and priorities in line with our new strategic direction, we examined the suitability of the measures included in last year’s SOI and in the “Better Work, Working Better” document.

As a result, we revised the measures, focusing our efforts on developing a smaller number of more strategic measures for the goals and medium-term priorities. Progress towards the long-term goals will be assessed by monitoring key environmental measures and associated indicators13, as outlined under each goal.

These will be compared against international trends and benchmarks where possible.

The development of appropriate impact measures and indicators14 for the medium-term priorities is underway. It will be followed by the development of measures for specific interventions.

Research and evaluative activity

As part of the outcomes measurement process, evaluation questions are being developed for areas where there are no suitable measures for determining the overall effectiveness of the Department’s current interventions. Evaluative activity in the Department is likely to increase and be more strategically directed, as the new operating model places a great deal of emphasis on learning from evaluation and feedback.

The Department already has a programme of research and evaluative activity underway and planned, which is and will continue to be helpful in assessing the value of the Department’s initiatives.

Findings from our research programme are used to inform policy development and service delivery across the Department. Examples in the immigration, skills and workplace injury areas are:

Studies into the movements of migrants (People on the Move), the outcomes for employers of skilled migrants and for skilled migrants themselves (Skilled Migrants in New Zealand), help us understand the value of migrants to New Zealand and the importance of policies and service delivery in attracting and retaining them.
The Job Vacancy Monitoring Programme provides insights into skill shortages in New Zealand, identifying which skilled occupations are in shortage, and improving to our understanding of the supply and demand forces contributing to these shortages. This information can then be used to direct our policy development and service provision, such as seeking to attract more skilled migrants in occupations where there are shortages, and working with industry and training sectors to provide students and workers in New Zealand with the skills required.
A study of the long-term labour market outcomes of injured workers found enduring adverse effects, which were worse for women, older workers and workers with lower earning prior to injury. The research has highlighted the importance of vocational and social rehabilitation in assisting injured workers to return to work.

The new operating model signals the need for increased information, evaluation and feedback to enhance policy development and service delivery on an on-going basis. Planned research and evaluative activity is outlined in each long-term goal section that follows.

The cost-effectiveness of the interventions that the Department delivers and administers is currently being examined through the strategic baseline review process, so cannot be reported on this year. The Department will be able to develop meaningful cost-effectiveness measures once the review process is completed. The results will be taken into account in the development of the impact measures, and the process should position the Department well to report on cost-effectiveness next year.

Partnership approach

To achieve the Government’s agendas and the Department of Labour’s outcome, the Department cannot work in isolation, but must engage with a range of stakeholders and partners. This includes the work we do with other government agencies, our social partners, and non-government organisations in developing a range of coordinated incentives and levers that reinforce each other.

Notes:

13. Environmental indicators – indicators of changes in the labour market against which we can measure progress towards our long-term goals.
14. Impact measures – changes in the labour market directly attributable to activities of the Department.