Trans Tasman 2017 New Zealand Government
Departments Review

Peter Hughes Cements Reputation As Public Service Superman

This is the 8th annual review of NZ's Government Departments by the Trans Tasman Editors and Senior Writers and a high profile Independent Board of Advisers.*

Once again the advisers have named Peter Hughes as Public Sector CEO of the Year.

Hughes is the standout among the public service CEOs, having taken the accolade four times already for his work as head of Departments such as Education and Social Development. Now he takes the top honour for his role as State Service Commissioner. He stepped into the role replacing the much maligned and reputationally tarnished Iain Rennie. Last year's 7th annual report called for Hughes to step into the role.

Hughes immediately put his stamp on the entire state sector, with new and innovative ways of managing and motivating the entire workforce. He called all of the sector's leaders together to impart his view of how he wants things done, and there has been a notable lift in performance and morale since he took over.

As the Independent Board of Advisers notes “New Zealand is lucky to have this guy at the top of the public service tree. He embodies what true public service leadership is about.”

But it's not all plain sailing for Hughes. There is still a vast talent gap among CEOs and as the report says “while Hughes is working hard to refurbish the public service framework cheered on, it must be said, by almost all of his senior CEOs and managers, he is also aware of pressures from the Government of the day.”

Much will rest on the broad shoulders of the new State Services Commissioner and whether the “Hughes Effect” will create the necessary change to push the public sector to the next level of data driven, cost effective service.

Government Department of the Year is the Accident Compensation Corporation for the third year in a row. It has been a standout for its financial performance and its ability to bounce back after a nightmare few years in which privacy issues and other matters got in the way of its real task – helping people hurt in accidents get back on their feet.

Under the leadership of Scott Pickering the Corporation has overseen a reduction in levies and a vast improvement in its financial situation. It's master – the Government – and its Minister must be delighted at the turnaround in what was a crisis ridden Department for quite a few of the years National has been in office.

In the Report ACC’s ongoing work in reducing levies, increasing customer satisfaction, and high investment returns has seen it get the top rating overall and value for money. However its overall score of 5.2 is down from 5.7 last year. The CEO’s rating is 5.3, and it gets 5.3 for value and 4.8 for quality of service. The Minister was given a high 5.0 for implementation of their policy agenda.

The Independent Board of Advisers were fulsome in their praise for the Corporation.

“Professional, effective managers of risk.”
“Apart from the odd incident seems to be functioning well. Improved efficiency shows.”
“Well run, doing a good job.”
“Scott is a good leader.”
“Seems to be working now.”
“Strong financial performance.”
“Solid progress and has kept out of the media.”
“Managing assets extremely well without compromising service provision.”
“Strong commercial performer - much improved service delivery and addressed privacy concerns - some communications could be improved around client issues.”
“Making real progress but plenty of room for more efficiency.”

Among other Agencies rated by the Independent Board of Advisers

The Ministry of Business Innovation and Employment copped some flak
“Too business facing, employee interest lost, superficial focus on economics.”
“It used to have a "no wrong door" approach, but now every door seems to be the wrong door. “
“Many in business find it hard to know who is doing what.”
“Poor to respond to requests and don't appreciate view of industry. Seem captured by their Ministers.”

Ray Smith's Department of Corrections also gets the treatment:
“Not a stellar performance.”
“This difficult part of the economy could not be in better hands than Ray Smith.”
“More challenges than CEO can handle. Prisons need reform big time. Gang dominance a big issue.”
“Still struggling.”

The Ministry of Education is a perennial problem child – this year no exception.
“Important role, let's wait and see.”
“Always lost.”
“On the improve but that was needed.”
“MOE still captured by teachers and academics. A shame Peter Hughes did not stay a bit longer.”

The Ministry for the Environment under Vicky Robertson gets some positive notes:
“CEO is a rising star. Doing a great job leading MfE. Not afraid to address the hard issues. Watch out for water.”
“Still early days but has yet to deliver the fundamental change required at MfE.”
“Minister is the biggest threat to the Ministry.”
“Has built a very strong team with some great policy experience and intellectual grunt, now needs to take the next step, but good signs, collaborative.”
“Deserves better than Nick Smith for a Minister.”

Brook Barrington has a vote of confidence at MFAT
“A good choice as CEO. Has steadied the MFAT ship and the organisation is now more adroit at managing stakeholders.”
“Aside from the US immigration issue has been a strong performer - Ministry is more settled and working well.”
“Some are starting to become concerned at increased centralisation and bureaucracy but Barrington is a class act and he has full confidence of Ministers. He has problems at tier 2 and Tier 3 that need addressing fast.”

There's a mixed bag of comments for the Ministry of Health
“Too much restructuring, lost the confidence of the sector - unions, providers and DHBs.”
“The Ministry would achieve more by being more pragmatic and engaged with communities. It could learn a lot from the Health Promotion Agency's approach.”
“Poor to respond, single-minded in approach and despite some notable exceptions, lack capability.”
“CEO not demonstrating good leadership qualities. Needs to lead, not confront. Reflects across the Ministry.”

The Ministry of Maori Development as usual gets some stick
“Very low profile. Not sure of impact.”
“No leadership.”
“No recent scandals so doing well.”
“Little sign of worthwhile activity.”
“Should do better.”

The role of the Ministry for Pacific Peoples is also questioned:
“Why do we need a Min for Pacific Peoples?”
“What does it do?”
“Outputs hard to measure.”

Andrew Kibblewhite's Department of the Prime Minister and Cabinet gets a sound review:
“Effective. Professional. Well led.“
“Solid and dependable. Has had a good year with significant new responsibilities.”
“Always reliable.”
“Will be interesting to see the impact of a change of PM.”
“Good performance.”

Peter Mersi gets some stick as CEO of the Ministry of Transport
“Does not seem to be on top of its game.”
“Sometimes out of touch with reality.”
“Lacks presence and profile.”
“This outfit needs to stop dreaming and start acting before the country grinds to a complete halt needs recalibration.”

And as usual, The Ministry for Women is the target of much of the criticism levelled in the report:
“Trying hard but struggles.”
“Low profile CEO qualities not yet obvious.”
“Trying harder and at least doing some constructive things.”
“Hopeless and useless.”
“Challenged by lack of leadership and measurable objectives”
“Time for Ministry to go.”

The Independent Board of Advisers took a look at Ministerial performance as well:
“Bill English and Paula Bennett both fitting very comfortably into their positions and performing well. Alfred Ngaro and Mark Mitchell are invisible.”
“Great performances by Finlayson and Bridges. Joyce and English did pretty well also. Good final years in the job for McCully and Parata. PM Key should never have promoted Barry. Bill English will have to sort this out. Many grumbles from officials and colleagues about Goldsmith. The main problem is Bill English's close friend Nick Smith. He will not listen...”

*The Review of the Government Departments is divided into two parts.
In the first section a high powered Board of Independent Advisers looks at the state sector from a user's point of view, running their eyes over the agencies based on a number of metrics. They answer a questionnaire, published in the Review, and provide their own rankings and comments on the departments, their CEOs and the Ministers who run those Departments.

The other part of the Review is compiled by Trans Tasman's editorial team - some of the sharpest minds in the game. They take a measured look at the Departments, where they have been over the past 12 months, and where they are going. The two groups have no contact with each other and their views are sometimes contradictory, but more often, coincide with one another on their analysis of the organisations involved.

ends

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