Transcript Senior Leader Career Development

Extending functional leadership to
Crown entities
Decision & resolution process
June 2014
Background
 Section 107 directions under the Crown Entities
Act can be issued by the Ministers of State
Services and Finance to apply a whole of
government approach for the following purposes:
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to
to
to
to
to
improve (directly or indirectly) public services
secure economies or efficiencies
develop expertise and capability
ensure business continuity
manage risks to the Government's financial position
 Extending Procurement, ICT and Property
functional leadership beyond core Public Service
departments to Crown entities is consistent with
these purposes
Definitions of terms

“Requirement” means a requirement specified within a section
107 direction to apply a whole of government approach to
particular entities.
A direction may have one or more
requirements
(Examples: requirement to seek agreement of the GCIO to ICT
strategic plans and investment intentions; requirement to apply
the Government Rules of Sourcing)

“Escalation” means a stepped process of engagement to reach
agreement on how a particular Crown entity is to comply with a
requirement specified in a section 107 direction
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“Disapply” means rescinding one or more of the requirements
specified in a direction, or the whole direction, after they have
been confirmed by Ministers. This can occur only through the
issuing of a new or amended direction by the Ministers of State
Services and of Finance to 3 or more entities
Decision processes

Applying new requirements: A CEA s107 direction process is required
before the Ministers of State Services and Finance issue new requirements,
in addition to any existing requirements, in a direction applied to Crown
entities
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Disapplying existing requirements: A CEA s107 direction process is also
required before the Ministers of State Services and Finance disapply any
existing requirements (meaning the Crown entities no longer have to
comply with them)
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Any direction to apply a new requirement, or disapply an existing
requirement, must be applicable to no fewer than 3 Crown entities
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Substantive changes to the content of existing requirements may be
made by agreement of the Ministers of State Services and Finance, in
consultation with relevant responsible Ministers

Administrative changes to existing requirements of a process or
technical nature, which do not substantively change the intent or impact of
those requirements, can be made by the Functional Leader
Who is responsible for what?
Ministers of State
Services & Finance
Responsible Minister for
entity
Responsible Minister
for Functional Leader
Answerable to the
House for the
overarching mandate
for Functional
Leadership as it applies
to Crown entities
Answerable to House for the
performance of the entity in
complying with
requirements specified in a
section 107 direction
Answerable to House for
the performance of the
Functional Leader, eg in
leading the application
of specified FL
requirements
SSC and Treasury
Entity Board
Functional Leader
Responsible for
quality of advice on
the overall mandate
for Functional
Leadership as it
applies to Crown
entities
Responsible for the
performance of entity in
complying with the
specified requirements
Responsible for leading
the application of the
specified requirements
Responsible for advice
on FL requirements
within a section 107
direction
Resolution process
Who?
How?
Ministers of State Services
& Finance
Entity
Responsible
Minister
FL
Responsible
Minister
Entity
Board
Functional
Leader
Entity
chief
executive
Entity
function
team
Functional
Leader
FL
team
• The FL and CE of the entity have joint
responsibility for resolving concerns about how
directions are being applied at the lowest
decision-making level possible. Central agencies
may assist.
•
Advice
HoSS
Central
agency
officials
Area of
concern
Resolution is by consensus, or other mutually
agreed process. The expectation is that this
process of engagement should suffice in almost
every case.
• Escalation to the next level only occurs in
exceptional cases, when other avenues have been
exhausted. Both the FL and the entity should be
parties to any escalation.
• If required, the HoSS, or delegated agent with
relevant expertise, may be called on to help
resolve any dispute between the FL and entity
before escalation to Ministers. (Payment for any
external expertise is by whoever asks for it).
• Disputes must be escalated to the Ministers of
State Services & Finance if changes to the
direction are envisaged (& a new direction
process, if warranted).
Factors for consideration
Functional Leader perspective
Entity perspective
Impact on the delivery of services and
results for the system, eg:
• Scale of entity may bring cost benefits
to all participating agencies
• Standardisation may support citizencentric service design across agencies
• Investment alignment may enable new
common capabilities to be developed
faster
• Security capability uplift may improve
system level public confidence
Impact on delivery of entity services and
results, eg:
• Fit with business strategy and
investment plans
• Impacts on operational effectiveness
• Timing, eg for current contracts and
replacement of capabilities etc
Fiscal implications across government,
including contribution of entity to
system-wide benefits and savings targets
Financial implications for the entity,
including compliance and other costs
compared with benefits
Consistency with FL mandate and
decision-making approach across system.
Adequacy of engagement with entity on
decisions
Fit with board duties, responsibilities and
decision-making. Adequacy of
engagement with FL on decisions