Withheld under section 9(2)(f)(iv) of the Official Information Act

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2 the due diligence process. Resources from the State Services Commission, the Treasury and the affected departments will be applied to a Transition Taskforce that will undertake the due diligence. 5 The due diligence process will consider the following: transition planning to ensure that, following Cabinet decisions by the end of April, that the new Ministry can be established and functioning on 1 July 2012 identifying risks and applying risk mitigation strategies for risks that may hinder the proposal going ahead on 1 July 2012 organisational design to establish the key elements required for start-up on 1 July 2012, including the structure for the new Ministry s senior team Withheld under section 9(2)(f)(iv) of the Official Information Act conducting a cost and benefit analysis to ensure the proposal makes fiscal as well as strategic sense identifying any issues that would impact on the proposal going ahead on 1 July The Transition Management Group will provide a due diligence report to Ministers by 20 April to enable Ministers to report back to Cabinet by the end of April for final decisions. Implementation 7 Following Cabinet s final decisions in April, an implementation process would take place to enable the successful establishment of the new Ministry on 1 July Decisions on detailed financial and employee transition processes would be sought from Ministers towards the end of May 2012, following the Budget moratorium. Core business 8 Ongoing core business activity, such as progressing key result areas, achieving Ministerial priorities, ongoing work processes and risk management would remain the responsibility of individual chief executives. The Transition Management Group would provide a collective mechanism for aligning individual accountabilities to the requirements for transition to the new Ministry. 9 From 1 July 2012, the new chief executive of the Ministry of Business, Innovation and Employment would become responsible for ongoing core business. The new chief executive would also be responsible for achieving the full integration of the new Ministry, a process expected to take between one and two years. 10 Attached to this aide memoire are: 10.1 The current communications approach for the week of the public announcement. Note that this will be finalised following engagement with Ministers offices, with the State Sector Reform secretariat preparing the Prime Minister s Better Public Services announcements, and with the affected chief executives 10.2 The one-page summary approach to moving to the Ministry of Business, Innovation and Employment 2

3 Final Cabinet Paper 11 We would like to make a minor editing change to the paper following Cabinet consideration. This concerns departmental consultation in paragraphs 91 and 105 and reflects that all chief executives will be informed prior to public announcement. Recommendation 12 It is recommended that you: 1 note this briefing Yes / No Liz Sinclair Deputy Commissioner Minister s Comments: Minister s Signature: Date: / / 3

4 DRAFT Discussion document only Moving to the Ministry of Business, Innovation and Employment Timing Implementation Governance Core business NOW Decision Public Detailed Start date End of first quarter Go/no go 1-2 year on due Announce transition for new 2012 decision process diligence ment decisions Ministry October Baseline Update 12 March 15 March 30 April 28 May 1 July 1 Oct FUTURE Small SSC project team making preparations Due diligence by Transition Taskforce Governance and Communications Staff engagement, stakeholder communications etc Functional Analysis - functions - powers - arrangements - stakeholders - funding Cost and Benefit analysis The Ministry of Economic Development has been assigned lead responsibility for the Interacting with the government: Business Services Better Public Services result area Identify any show-stoppers and risk mitigation strategies Transition planning How to transition and when? Organisational design Purpose and what structure to achieve? Key elements required for start-up Structure for senior team The Department of Labour is a contributing agency to the Skills and Employment: NCEA Level 2 and NZQA Level 4 Better Public Services result area Shortly, the Prime Minister and Ministers will agree their priorities for their portfolios over the next three years The Ministry of Economic Development, the Department of Labour, the Department of Building and Housing and the Ministry of Science and Innovation provide important services to Ministers, business and other stakeholders The Ministry of Economic Development, the Department of Labour, the Department of Building and Housing and the Ministry of Science and Innovation have risks that need to be managed for their processes and services. Integrating four departments increases the potential risks for processes and services Withheld sec 9(2)(f)(iv) OI Act Decisions for Ministers * whether to proceed *and, if so: - purpose and priorities - structures - change scale - change pace Implementation work MINISTERIAL OVERSIGHT GROUP and TRANSITION MANAGEMENT GROUP Key strategic planning, alignment and risk management mechanism Senior Leaders People Legal Finance Property Corporate Systems Progressing Key Result Areas Achieving Ministerial Priorities Work Processes Risk Management CE and 2 nd tier change management only Transfer on existing terms and conditions Order in Council to transition only Same Votes with single point of accountability Same buildings, no location changes Existing systems Very limited integration of structures Implementation by Transition Taskforce Will have achieved by Will have achieved by Decisions for Ministers - Detailed decisions on financial implications - Appointment and employee transition processes - Confirm Orders in Council 3 rd and 4 th tier change management + key priority areas (policy, corporate) Progress alignment of terms and conditions Change key contracts Decisions on Vote structure and output classes Decisions on preferred locations for activities, some location changes Agreement of systems for future Some integration of teams Development of some key whole of Ministry policies Responsible Minister(s) Chief Executive of Ministry of Business, Innovation and Employment Central agency performance oversight and support Departments will follow the approach agreed by Cabinet. The Transition Management Group will support individual chief executives to ensure that the Results Action Plan is prepared. The Transition Management Group will provide a collective mechanism for progressing and monitoring the achievement of Result Action Plan activities during the transition period Individual chief executives are accountable to Ministers for achieving portfolio priorities. The Transition Management Group will provide a collective mechanism for ensuring that individual portfolio priorities are progressed alongside the transition process The due diligence process will require chief executives to provide information on business continuity processes. Chief executives are accountable for ensuring business continuity planning is in place. The Transition Management Group will provide collective oversight and ensure consistency of approach The due diligence process will require chief executives to provide information on risk management processes. Chief executives are accountable for ensuring risk management strategies are in place. The Transition Management Group will provide collective oversight and ensure consistency of approach Implementation success as at 1 July 2012 The implementation process will have been well led and disruption minimised The new chief executive will be in place and able to lead the Ministry to achieve the business growth agenda Ministry of Business, Innovation and Employment success More productive, competitive and innovative businesses Government s policy capability in the business development sector will have been strengthened The regulatory environment for business and consumers will have been improved Business-facing service delivery functions will be brought together and businesses will experience less fragmentation The Public Service will be better coordinated internally and there will be reduced duplication of effort Stronger relationships and simpler accountability between the chief executive and Ministers A clear efficiency dividend and avoidance of future costs Evaluation of Success? Clear benchmarking of current performance to enable future performance to be assessed Evaluative programme to assess financial costs and benefits Stakeholder and customer engagement to assess impact of change Ministerial confidence Workforce engagement and productivity Key capabilities (and key people) have been retained Core business success Results Action Plans will be in place and demonstrable progress being made Ministerial priorities will have been progressed Stakeholders and customers will have experienced minimal disruption to services, and any disruption has been well signalled Risks have been identified and mitigated. Any issues arising have been dealt with effectively

5 Announcement Timeline (by actions) Withheld under section 9(2)(g)(i) of the Official Information Act

6 Withheld under section 9(2)(g)(i) of the Official Information Act

7 Withheld under section 9(2)(g)(i) of the Official Information Act

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