Workplace Productivity in the State Services

Workplace Productivity in the State Services sits within the following framework:

• State Services Development Goals
• Partnership for Quality Agreement
• Managing for Outcomes

State Services Development Goals

In March 2005 the Government agreed an ambitious set of Development Goals for the State Services.  The Goals provide a framework for delivering the next generation of State Services.

The overarching goal is to build a system of world class professional State Services serving the government of the day and meeting the needs of New Zealanders.

The overarching goal is supported by six Development Goals:

• Employer of Choice: ensure that the State Services is an employer of choice attractive to high performers, who are committed to service and the achievement of results
• Networked State Services: use technology to transform the provision of services for New Zealanders
• Value-for-Money State Services: use resources and powers in an efficient, appropriate and effective way
• Coordinated State Agencies: ensure the total contribution of government agencies is greater than the sum of its parts
• Accessible State Services: enhance access, responsiveness and effectiveness and improve New Zealanders’ experience of State Services
• Trusted State Services: strengthen trust in the State Services and reinforce the support of service

Achieving the Development Goals will need the momentum and support of State servants across the whole State Services.  Transformation of the way State servants see and undertake their diverse roles, the way agencies design and deliver services and the way systems and networks are structured will present many challenges.  This will only be possible if State servants engage with the challenges collectively.

Partnership for Quality Agreement

The Partnership for Quality (PfQ) Agreement, between the government, Public Service employers and the Public Service Association (PSA), is a commitment to build quality jobs and quality public services.  This relies on genuine engagement of government, employers and the PSA.

The third PfQ Agreement was signed in May 2007.  As well as strengthening the commitments in the previous agreements, this agreement recognises productivity initiatives as a priority.  A productive and responsive public service must include:

• a culture of high trust
• networked services
• being an employer of choice
• good, productive work practices
• support for delegates
• learning environments; support for innovation
• good work design; meaningful work
• development of leadership potential

These features are encapsulated in the PSA’s strategic agenda Democracy at Work.

For more information about the PfQ Agreements see the PSA website (www.psa.org.nz), the State Services Commission website (www.ssc.govt.nz) or the Democracy at Work publication.

Managing for Outcomes

Managing for Outcomes is the public management system for creating public value.  It frames organisational outcomes from the perspectives of citizens and asks how government can achieve better outcomes. 

This includes:

• identifying the most important results for New Zealanders
• managing for these results, including setting clear desired results, implementing plans based upon these results and learning about what works in the process
• agencies working together whenever this helps to achieve the desired results.

How productivity is measured in the State Sector

In the private sector, value is created by selling goods and services.  Success is based on the volume and prices of goods and services sold and productivity is increased when a greater amount of private value is achieved per unit of input.    

In the State Sector, value is created by promoting the public good and by delivering excellent services to citizens.  There are generally no market prices attached to the services delivered and volumes are often difficult or impossible to compare.  This means that it is hard to include the public sector in the official Statistics New Zealand measures of productivity across the economy. 

Ministers and government agencies regularly reassess their outcomes/objectives and evaluate the extent to which their current mix of outputs is achieving the desired outcomes/objectives.  This can be complex given the interaction of outputs from both public and private investment.

Government agencies also measure their efficiency and effectiveness in delivering outputs, including:

• measuring inputs  (e.g. staff, equipment, costs)
• measuring the volume and value of outputs where possible (e.g. call centre volumes and response times)
• evaluating the effectiveness of specific programmes
• evaluating processes and measuring through proxies such as client, customer, and staff satisfaction surveys

While measuring State Sector productivity is not without its challenges, the quest for public value has created impetus to improve data collection and measurement methodology in this area.  There is substantial scope for innovation and learning from collaboration to improve outcomes measurement in the State Sector over time.

In developing projects it is worth thinking about the measures you will use to gauge success.  Some examples are:

• reduced staff turnover/lower sick leave
• better use of technology
• a higher volume of output for the same inputs
• higher trust in the workplace
• better outcomes for services users

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