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Part 1: Strategic intentions

Our strategic direction

Chief Executive's and Minister's statements

Executive summary

About our organisation

The reasons for change

Our strategic response


Figure 1: Our strategic direction

Image, Our strategic direction.

Chief Executive's and Minister's statements

In signing this information, I acknowledge that I am responsible for the information on strategic intentions for Statistics New Zealand. This information has been prepared in accordance with section 38 and section 40 of the Public Finance Act 1989.

Liz MacPherson
Government Statistician and Chief Executive
30 September 2016

I am satisfied that the information on strategic intentions prepared by Statistics New Zealand is consistent with the policies and performance expectations of the Government.

Hon Craig Foss
Minister of Statistics
30 September 2016

Executive summary

Unleashing the power of data

New Zealand has started on an exciting evolution to increase the accessibility, usability, and value of its statistical data. The data ecosystem (that is, all of the data and its suppliers and users in New Zealand) is increasingly being called on to deliver greater value to the community. Decision-makers, policy-writers, Māori and iwi, businesses, community groups, and individuals want to enhance their use of the rich data resources held in the data ecosystem to inform thinking and decisions.

Statistics NZ, as co-leader of the data ecosystem, recognises its important role in enabling the unleashing of the power of data so more people can realise its value. We have a goal to increase the value of data to decision-makers tenfold in the next fifteen years. This will require focused and coordinated effort across the data ecosystem.

As New Zealand’s national statistics office (NSO), we are entrusted by the government and the people of New Zealand to lead the Official Statistics System (OSS). In this role, we are responsible for providing official statistics that are the result of a careful statistical production process. We deliver reliable key statistics, such as the consumers price index (CPI) and the gross domestic product (GDP) statistic.

However, we have a broader responsibility as well. We have a responsibility to work with our colleagues in the data ecosystem to ensure our nation’s data services and products deliver to meet the needs of the community. Our role as NSO gives us the mandate to respond to New Zealand’s increasingly urgent data demands. It places us in an exciting position to enable change in the data ecosystem to unleash the power of New Zealand’s data.

Accessible, usable, valuable data

Our customers are demanding more data, more frequently, and in forms that meet their specific needs and the decisions they need to make. Some just want the underlying data, some want more tailored analysis, some want tools that make the underlying stories easier to see and understand. The current government’s aspiration
is to enable evidence-based policymaking with open government data and information systems to support a more competitive and productive economy and better targeted public services for our communities.

The strategic direction described in these strategic intentions sets out Statistics NZ’s plan to support the delivery of this aspiration and that of our other key customers. In this plan we describe a future where we co-lead a data ecosystem that is connected, responsive, and will anticipate and respond to our fast-changing environment as a norm.

In a world of ever-increasing changes in the pace and amount of data being collected and sought, we envisage that, as a system, New Zealand will need a ‘national data exchange’ model. In this model, flexible infrastructure supports supply and retrieval of data, so the value of the data can be unleashed at points and in forms not currently available. This open data model will need to be provided in an integrated, robust, and safe environment to protect the privacy and confidentiality of individuals and businesses, while enabling more people and organisations to supply and access data as it is needed through multiple digital channels.

Our journey to meet New Zealand’s data needs

To meet New Zealand’s data needs, Statistics NZ’s roles and offerings are changing. This is the continuation of an evolutionary journey that began at least five years ago, when we started increasingly focusing on our leadership role in the OSS as part of the Statistics 2020 programme. By articulating the strategic direction in these strategic intentions we have reached another key milestone. However, this is not a journey with a defined start and end point. The quest for internal agility, responsiveness, and effectiveness that anticipates and responds to our ever-changing environment will continue beyond the life of this plan.

What our future looks like

In the future, how we work and our scope of work will change from our historical remit as a provider of official statistics to a new expanded remit focusing on unleashing the power and value of data. We will do this by expanding our role as an enabler, an innovator, and a steward of data. The expected scale of change to achieve this over the next fifteen years is significant (figure 9).

Our change of focus requires us to rethink how we work. We will need to make data available earlier and in more granular form, while continuing to meet privacy standards. To enable data to be unleashed at an increasing number of points in our value chain, our organisation and systems will have to work differently (figure 3). Discovery and exploration will be core to innovation and our new types of relationships within the ecosystem – with suppliers, customers, and intermediaries. We will focus our functions on sustaining, enriching, sourcing, and shaping data from and through the data ecosystem. This will not be a linear process driven by the statistical business process model – although that will remain central to our key official statistics – but will enable a flexible organisational approach to allow data to be unleashed earlier.

As a result of determining how we will unleash data throughout the value chain, we have defined a target operating model to guide our re-focus over the next few years. We have articulated the value and capabilities we think we need to deliver on our strategic direction (figure 7). Our core offerings and roles are fundamental concepts in our new operating model (figure 8). Although we currently provide to some extent all of the four core offerings – statistics for critical decision-making, data services, insights, consulting services – they will need to be grown and strengthened. As will some of our core roles of provider, enabler, steward, and innovator.

The ability to work ‘outside in’ – that is, listen to our customers and the data ecosystem and anticipate and respond to their needs – is central to our new way of working. Our ‘character’, or how we will act (figure 5) and the way we make decisions (figure 6) describe what we want to be like as an organisation to enable this change.

In short, we want to enhance our offerings, the way we work internally and within the data ecosystem, and how we act and make decisions. Developing the capabilities described in the target operating model is how we are going to do it (figure 7).

How we’ll get there

Our strategic direction is compelling and necessary. But achieving it will not be a simple, linear process. We continue to be committed to delivering the statistical services and products with which we are entrusted while striving to achieve government aspirations through our strategic direction. The new strategic direction is a growth story, and doing more will come with higher costs for Statistics NZ. This is balanced by the system-wide benefits that accrue from Statistics NZ as the system provider, enabler, and steward of data and statistics, which will more than offset the requirements to deliver these changes. Our focus is not on ourselves, but on the entire system, and as such future directions are focused on the system as a whole.

It is an exciting time for the data ecosystem in New Zealand, and Statistics NZ is proud to be leading the charge to unleash the power of data to change lives.

About our organisation

Statistics NZ’s purpose is to empower decisions by adding value to New Zealand’s most important data. Our vision is to unleash the power of data to change lives.

We gather data on a wide range of topics such as income, housing, the environment, the economy, education, and social well-being. This rich information helps people decide where to locate a business, what products to sell, and where we need roads, schools, and hospitals. It also measures environmental progress, quality of life, and how families are doing. Statistics are used by all decision-makers, including the government, local councils, Māori, business, and the general public, to help make decisions so that New Zealand’s economy, people, and communities can thrive.

We have traditionally added value to New Zealand through collecting, processing, and analysing data to create official statistics. Due to our expertise in data management and protection, we have also been trusted with the mandate to lead the Official Statistics System (OSS). We have performed this function reliably and with care to provide robust and relevant statistics to inform decision-making in New Zealand. However, our environment is changing and, while we must retain
our core role as a trusted and independent provider of official statistics, we need to grow to respond to our changing environment.

The reasons for change

Our customers are demanding data to drive decisions

Our customers are demanding more data, more frequently, and in forms that meet their specific needs and the decisions they need to make. As a key customer, the government’s aspiration to enable evidence-based policymaking with open government data and information systems to support a more competitive and productive economy and better targeted public services for our communities is an important contributor to the strategic direction of Statistics NZ.

While Statistics NZ has always supported government priorities by providing critical statistics, the increased focus on data-driven decision-making and investment approaches to spending within government has significantly elevated our contribution to central government decision-making.

Data-driven decision-making has moved beyond the use of the statistics that we publish, to requiring datasets that support analysis at a much more granular level. This, for example, enables more targeted spending through policy interventions directed at sub-populations. Taking a customer-centred investment approach to target spending seeks to minimise costs in the long run, through understanding longitudinal patterns and making early interventions. This creates a need for Statistics NZ to develop and steward accessible, integrated datasets that enable these investment decisions to be made.

Among the priorities agreed with the Minister of Statistics, we will ensure Statistics NZ is well positioned to enable New Zealand to unleash the power of data to change lives. Our strategic direction and implementation are directly tied to achieving this priority.

We have started our journey

Over the past five years, we have implemented transformational changes in the way we operate. We have focused on making stronger connections across government, where data will be more actively used in decision-making.

The two major budget bids in this regard were Statistics 2020 (Budget 2011) and Analysis for Outcomes / Integrated Data Infrastructure (Budget 2013).

Statistics 2020 set out four key strategic goals:

  1. Lead the Official Statistics System (OSS) so that it efficiently produces the information that New Zealand needs.
  2. Obtain more value from the country’s investment in official statistics.
  3. Transform the way Statistics NZ delivers statistics.
  4. Be a more responsive, customer-focused, influential, and sustainable organisation.

The programme was split into three key tranches, with the first focusing on ‘laying the foundations’, which emphasised replacing legacy systems and working towards a more integrated and standardised set of platforms that are more readily maintained. Later components of the programme had a stronger OSS focus, particularly in relation to raising the profile of the value of data and building capability in using data.

Meanwhile, the funding provided for Analysis for Outcomes enabled us to further develop the Integrated Data Infrastructure (IDI). This prototype brought together datasets from across government to test and to enable leading-edge data analysis and research to be undertaken, providing insights into some of New Zealand’s more complex decisions.

With Tranche 2 of Statistics 2020 underway in 2014, and the huge success of the IDI, we paused to reassess whether the longer-term directions of Statistics 2020 would deliver everything we need to remain relevant and add value in the emerging data ecosystem.

We drew on the work of the New Zealand Data Futures Forum, explored the trends emerging in New Zealand, and the global trends affecting the production and use of statistics. We challenged ourselves to refresh our strategic direction to increase the value we provide to New Zealand.

Our operating environment is changing

Several factors are driving our strategic response, propelled by the rapid change in our constantly evolving environment that presents both opportunities and challenges. The Statistics Legislative Review has commenced, which will explore how our governing legislation will be fit for purpose, customer centred, and future focused, addressing Statistics NZ’s expanded remit in New Zealand’s changing data environment.

New Zealand is missing out on a data- driven innovation dividend

An increasing number of reports are concluding that New Zealand is not securing the potential benefits of data-driven innovation. The most recent estimated that increased use of data to drive innovation could deliver $4.5 billion in benefits to New Zealand over the next five years.

Drive for citizen-centred public services powered by data-driven innovation

The desire for better integrated, citizen-centred, public services requires the ability to use data-supported, joined-up approaches. Data and information architecture that supports joined-up approaches is essential to achieving these aims. As a result there is increasing demand for Statistics NZ to provide leadership, skills, and expertise in these areas.

Māori-led development is increasing the demand for relevant information and capability building

The Treaty settlement process is fuelling the desire for data for, rather than simply about, Māori, so that Māori can be the agents of their own change. Responding to the needs of Māori customers for a quadruple bottom-line approach to value will challenge the status quo – including what is measured, how it is measured, and how it is communicated.

Social licence

The proliferation of personal data across the data ecosystem is giving rise to questions about citizens’ privacy and confidentiality. A tension exists between the needs of decision-makers to generate insights at much deeper levels than ever before to solve systemic problems – such as the current focus on eliminating child poverty – and the desire of individuals to have their rights and privacy maintained. Our brand as trusted and independent remains strong, and is a foundation that allows us to be successful. However, as we increasingly provide new data-related services, we will need to ensure that we (and the data ecosystem as a whole) maintain our social licence as a trusted steward of the nation’s data and information.

More data is available than ever before

Data is growing exponentially. This has the opportunity to provide greater insights to decision-makers than ever before. Paradoxically, it is increasingly difficult to access the rich information that sits within increasingly larger datasets. Questions are also being asked about the quality of this data and how to manage it so insights can be harnessed, while balancing privacy and confidentiality requirements and individuals’ desire for control over their own data. Decision-makers are increasingly looking to us to provide leadership and advice on:

  • reusing data where possible
  • promoting cooperation in data storage
  • leading the development of data capability
  • providing data integration
  • ensuring that New Zealand’s data management and practices are world leading.

Growing demand for real-time insights

The exponential growth in data is being driven by digital technologies and the embedding of sensors and connectors in products (the internet of things). It has been estimated that by 2020, 50 billion devices will be connected to the internet and that the internet of things will have 5 to 10 times more impact on society than the internet*. Harnessing this real-time data and using it to augment or replace existing statistical output is a critical challenge facing statistical organisations worldwide.

*See ‘The internet of things’ by Dave Evans, on Retrieved 28 September 2016.

Focus is shifting from statistics to data

Our traditional role has been to provide official statistics. Data was valued largely as an input into the production of these statistics. While core statistics remain critically important, increasingly decision-makers want a richness of information that enables them to make more nuanced decisions. This is resulting in a shift from the statistical outputs we produce to the interrogation of the datasets behind the statistics. The value of statistical datasets, and the associated tools and techniques for their analysis, is reaching the level of the statistics themselves in their importance as a service we provide for customers.

Increasing data cooperation and competition

Private and public organisations are increasingly using their own and our data to generate insights. These same organisations may be providing data streams to us, using data and information that we create, and potentially also publicising information, at least in part, in competition to our own services. Organisations are increasingly developing their own data capabilities, which is blurring the lines of relationship, such that the same organisation can be a partner, customer, supplier, and competitor to us. We need to be able to work in this new environment, using fit-for- purpose approaches that maximise the benefits to New Zealand, not crowding out the private sector, and at the same time ensuring the organisation remains sustainable.

A shortage of data analytics capability

Statisticians are ideally placed to extend their repertoire into new data analytics and become data scientists.
Statistics was the data science of its time. As organisations seek to gain advantage over their competitors and increase their understanding of their customers’ needs through data, it is becoming increasingly difficult to attract and retain core statistical staff. This pressure is coming from both the public sector, and increasingly, the private sector. The growth of data analytics as a discipline means that we need to balance our role in supporting the growth of this capability for the good of the data ecosystem, with our need to ensure an ongoing robust statistical core and to provide new statistical and data services.

Growing expectations of customers

The points above mean it is no longer sufficient (if it ever was) for us to push our standard outputs out to customers, or to try to interpret their needs from within the organisation. We need to seek greater understanding of the data needs of our customers and the decisions they need to make. This will require working alongside our customers and co-creating new products and services to meet these needs.

Increasing pressure to reduce the cost of survey collection

The cost of collecting and disseminating information digitally continues to reduce towards zero. This trend is leading to the exponential data growth mentioned earlier. It is also creating a perception that all information needs should be able to be met without the need for direct surveying. Consequently, we need to continue to challenge ourselves on how we integrate and use administrative data, and to become increasingly judicious about the scope and manner of our survey collection – for example by moving to online survey data collection.

Continued funding constraints

We continue to be financially constrained as an organisation. This means that we need to focus on reducing inefficiencies in our collection, production, and corporate processes, to enable us to reinvest into ‘front of house’ services that support our customers to make decisions.

The Statistics 2020 programme was based on the premise that the organisation would co-fund the modernisation and ongoing maintenance of its core statistical systems through efficiency gains. Funding constraints mean that trade-offs will inevitably have to be made between either using efficiency savings to maintain core statistical systems and the
status quo, or responding to customer demand for new services.

A challenge to improve our performance

Performance Improvement Framework (PIF) Review 2014

In addition to changes in our operating environment, the 2014 PIF review further challenged us to consider our preferred future state. The challenges broadly fell under six areas and the thinking and commitments resulting from these challenges have directly informed our strategic response.

Strategy refresh

The PIF review challenged us to establish internal and external clarity around our role and purpose and
accountability for adding value through innovation. We have undertaken a strategic refresh, confirming our high-level strategic direction in our 2015/16 four-year plan and communicating it to a deeper level in these strategic intentions.

Data leadership

The review challenged us to develop a stronger and broader leadership role actively working with others outside the organisation. It suggested we cultivate a more proactive and collaborative role leading developments in broader data management.

Organisational character

The Executive Leadership Team (ELT) was challenged to act with pace, clear prioritisation, and internal and external assertiveness. They were also challenged to develop organisational character that would strengthen innovation, customer-centricity, and agility. The characteristics that the organisation needs to meet these challenges have been identified. They are now being embedded into the organisation. The ELT is working to encourage, model, and celebrate these.

Operating model

We were challenged to redevelop and embed a new operating model that supports our role as a data co- leader and collaborator. The developed target operating model (figure 7, p24) represents our critical systems, processes, and accountabilities, demonstrating customer- centricity and our partnerships across the data ecosystem. The target operating model provides a basis for strategic decision-making, nuanced risk management, and sustainability through ongoing efficiency gains.

Customer value

The review further challenged us to put customers at the heart of everything we do. We have committed to taking an ‘outside in’ view to create new ways of hearing our customers’ voices, so we can better understand their needs and the value of data in their decision-making.

Building capability

The final challenge was to attract, develop, and retain the right capability to deliver our redefined role and operating model, and to work with others to build data analytic capability across the state sector. This plan details how we will deliver this.

In response to the PIF review, the Minister of Statistics signalled the following focus areas for the four-year plan:

  • Redefining Statistics NZ’s role including a refreshed strategic direction, organisation character and culture, operating model, and the development of investment principles.
  • Enhancing Statistics NZ’s customer focus, including implementing new ways of hearing the customer voice and responding to customer needs.
  • Developing and implementing a workforce strategy to ensure that Statistics NZ attracts and develops the right capability and expertise to lead, innovate, and collaborate in the rapidly changing data environment.

We are managing our strategic risks

Managing our strategic risks is an ongoing commitment. As summarised below, strategic risks are also key considerations when determining our strategic direction.

If we do not communicate well with New Zealanders on how government will manage information, we may lose our social licence. We are acutely aware of the need to manage the public’s trust. This risk is mitigated through our messaging on our approach to managing privacy and security, and by retaining our independence, which provides a level of trust not always enjoyed by central government.

If we cannot steward the supply and use of information across the data ecosystem, we may be unable to provide New Zealand with critical data for decision-making. This could significantly reduce trust in the data being produced within New Zealand and internationally. We manage this risk through active partnerships and engagement with other agencies to collaborate on data supply, analysis, and release. Our leadership role in the Data Futures Partnership includes promoting good governance in the data ecosystem.

If we fail to understand and meet the needs of our customer groups, suppliers, and stakeholders, and do not articulate and provide value through innovation, we may lose relevance as a national statistical agency. We continue to advance our business partnering with other organisations, including intermediaries, to add value to data needs. In addition, the Census 2018 Programme is developing and articulating how it can double the value that can be achieved from the output of the 2018 Census.

We may be unable to create the data and statistical system that supports our vision and our purpose if we do not manage our resources responsibly and ensure effective delivery of change. Our business operating model supports our strategic planning and enterprise architecture design work, and active prioritisation ensures we are focused on achieving our vision. Effective financial management remains paramount to ensuring we remain sustainable.

Delivering change and increasing the value of data are reliant on our continued development of workforce capability, leadership ability, and workplace character. We are managing this risk through the core organisational character, with which we continue to build the capability that will allow us to embrace the new operating model. In particular we continue to support the growth and development of our people, especially those in leadership roles, and to mature our health, safety, and well-being practices.

If we do not manage our partnerships well we will become increasingly vulnerable to adverse events in the data ecosystem. We manage the partnership process carefully to ensure we share information values. The review of the Statistics Act 1975 will help get the setting right for future partnerships.

Our strategic response

The strategic response described over the next few pages has been developed with these risks in mind, acting as a counterbalance to ensure the operation of our business and our change agenda do not open Statistics NZ to unnecessary risk.

Our strategic response is a change of remit. In response to the change drivers, the PIF, government priorities, and our strategic risks, we have reframed our strategic direction as detailed over the next few pages and summarised at figure 1.

The scale of change we propose is significant.

But it is necessary change. Without this accelerated evolutionary change, Statistics NZ runs the risk of losing relevance and not delivering the value New Zealand requires.

Our strategic response articulates our vision and what we will achieve, how we will function, how we will act, how we will make decisions, and what we need to become.

Our vision and what we will achieve

Our vision of ‘unleashing the power of data to change lives’ guides our future-building work and the continuous improvement of our core business (figure 2). Our vision encapsulates Statistics NZ’s commitment to be a vibrant contributor to the well-being of New Zealanders by providing and enabling the use of data to drive evidence- based decision-making. Our purpose of empowering decisions by adding value to data drives all that we do. It is fundamental to the decision principles that guide our work. We will know we are on track to deliver our vision when we attain our goals of doubling the value of data by 2018 and creating a tenfold increase in value by 2030.

Figure 2: Our vision, purpose, and goals

Image, our vision, purpose, and goals.

Figure 3: Our value model

Image, our value model.

How we will function

Our value model defines how we will function in the future. Once we had decided on a clear vision, purpose, and goals, our next consideration in our strategic refresh was how we would achieve them. The two key components of the model are the roles we play in the data ecosystem and the strategic functions we perform to add value within the data ecosystem. The two lenses come together to form our value model (figure 3). This model is a significant conceptual shift from Statistics NZ’s traditional role of adding value largely through statistics. The components of the value model are described below.

Our relationship with the data ecosystem

The data ecosystem consists of people and organisations and the data they generate, share, and use. It is made up of individual citizens, businesses, government agencies, non-government organisations, communities, and groups, Mäori and iwi, and international organisations. Statistics NZ is an important co-leader in New Zealand’s data ecosystem. A key change expressed in this value model is the focus given to working within the ecosystem with our customers, suppliers, and stakeholders. While the statistical business process model and quality management toolkit remain key to delivering core statistics, the way in which our organisation functions in and with our data ecosystem will change. The roles and strategic functions express this change.

Figure 4: Our roles

Image, our roles.

Our roles

Our roles (figure 4) are intertwined with our functions and data ecosystem and sit in the middle band of the value model at figure 3. Our set of four roles – provider, enabler, steward, and innovator – were first articulated in our 2015/16 four-year plan alongside our new vision and goals. The four roles have become increasingly visible in our work over the past five years, with our past change initiatives broadly building towards them. Naming them solidifies these roles into key components of our strategic framework. They will play an increasingly important and expanding role in our business as we continue our change journey.

Provider: Continuing to provide trusted and independent data, and developing new products and services for existing and new customers based on customers’ needs.

Enabler: Enabling New Zealand’s decision-makers by better understanding of what customers use data for, empowering customers in data understanding and use, and providing targeted bespoke analysis for decision-makers.

Steward: Working with others to ensure the data ecosystem is robust, and that data is managed as a strategic asset, with its integrity, privacy, and security preserved.

Innovator: Driving value for customers by using innovative tools and techniques for managing, analysing, and communicating data and information.

Our strategic functions

The strategic functions describe how Statistics NZ will engage with the data ecosystem and give effect to our roles.

An important change in this model is that we unleash data and change lives throughout the value model and not just at the end of a traditional linear statistics-production process. We unleash the power of data and statistics to enable data-led innovation across society, the economy, and the environment; and enable all New Zealand decision-makers to have the right conversations and make well-informed decisions to positively change lives.

In the model, the strategic functions of ‘discover’ and ‘explore’ encourage us to foster and enable innovation across our business. These functions are central to the model and inform all of the functions encircling them. Working collaboratively with customers, suppliers, and stakeholders, we will discover, explore, and experiment with new data sources, new methods and processes, new tools, and new products to understand how they might add value and meet changing or emerging needs.

Circling the central core are the strategic functions ‘source’, ‘shape’, ‘enrich’, and ‘sustain’. Through these functions we will efficiently reuse our data assets and access data collected by others to:

  • minimise burden, maintain supply, and ensure one source of truth
  • optimise our preparation of data to ensure it remains in as natural state as possible yet is fit for purpose, usable, visible, accessible, and confidential
  • enrich New Zealand’s most important data and provide quality insights in ways that are meaningful to our customers
  • conserve and optimise data and statistics as strategic assets so they retain their value and are accessible – now and in the future.

How we will act

IDARE (figure 5) expresses the characteristics Statistics NZ will build, embrace, and exhibit as we shift our business to the value model. IDARE is an acronym for inquisitive, driven, agile, resilient, and engaging. It is a state of mind and mode of behaviour that will enable us individually and collectively to continue to perform our core statistical office remit and further expand into our roles of enabler, innovator, and steward. Our aspiration is to respond to the challenge “I dare to unleash the power of data”.

Figure 5: IDARE – Our characteristics

Image, IDARE – our characteristics.  

How we will make decisions

The following decision-making principles provide a lens to help us make decisions in line with our strategic direction (figure 6). These 11 principles will guide us as we consider priorities and opportunities. They will help us move towards the target operating model.

Figure 6: Our decision-making principles

Image, our decision-making principles.

What we need to become

The target operating model brings together our goals, value model, characteristics, and decision-making principles and describes how we will look in the future (figure 7). It is Statistics NZ’s new way of working and provides us with clear goalposts for our change journey.

In this target operating model, our remit is changed. While retaining the strength of our current, trusted products and services, Statistics NZ embraces expanded roles of provider, enabler, innovator, and steward. Our internal functions change. We serve our customers’ needs more comprehensively, quickly, and openly. We empower the data ecosystem we work in by building new types of relationships. And we more readily unleash the power of data to enable evidence-based decision-making throughout the ecosystem.

The target operating model consists of three components – strategy, value, and capabilities (figure 7).

Target operating model strategy

The strategy summarises the broader intentions of the model, explicitly drawing from and reflecting other components of our strategic direction story, including an acknowledgement of the extent and impact of our changing environment and our need to respond.

Target operating model value

The value section of the target operating model comprises our four core offerings, our roles, and our approach to service delivery, intermediaries, and the concept of ‘unleash’.

Figure 7: Our target operating model

Image, Our target operating model.

Our four core offerings are a fundamental component of the target operating model (figure 8). These offerings build on what we do today. Some, such as statistics for critical decision-making, are mature, while others are emerging and their development as core offerings of the organisation will enable us to empower the wider data ecosystem, and help us to double the value of data by 2018.

Figure 8: Our core offerings

Image, Our core offerings.

Target operating model capabilities

To deliver the value propositions above, we must align our organisation’s capabilities with them. The target operating model identifies seven key areas in which we need to grow and develop our capabilities:

  • process
  • organisation
  • technology
  • people capabilities and organisational culture
  • suppliers
  • enterprise performance management metrics
  • authorising environment.

Defining these capabilities has allowed us to develop work-streams that will help us achieve the target operating model and the strategic direction.

What it means for our organisation and our customers and suppliers

The scale of change this new operating model poses is estimated in figure 9. This diagram highlights the shift from our current level of operations to where we want to be when delivering a tenfold increase in the value of data by 2030.

Within our historical remit, which is largely focused on providing statistics, our strategic direction seeks to optimise the traditional methods we use for our current products and services. This is the smallest area of change. The increase in the use of new methods in our historical remit, including digital and big data, is a larger area of change and will require us to rethink how we use data to create statistics in the future.

The largest shift, however, is in expansion into new areas. Here we will use new and old methods, as appropriate, to deliver our expanded and enhanced roles and new functions – particularly as we deliver as an enabler and steward.

Figure 9: Scale of change

Image, Scale of change.

The estimated scale of change at the level of core offerings and roles to reach our 2030 goal is described in figure 10. Our biggest proportional areas of change are as:

  • an enabler of critical decision-making
  • a steward of data services
  • an enabler of insights
  • an innovator in our consultative approach.

The ‘provider of data services’ role is also a significant shift.

We currently deliver to some level in each of these areas. Our strategic direction continues us on our journey of expansion of roles and renewal of functions, focused on the system as a whole. It will enable us to work better with our customers, suppliers, and stakeholders to deliver services that are relevant, increasingly valued, and integral to effective decision-making in New Zealand.

Figure 10: Scale of change by core offerings and roles

Image, diagram of scale of change by core offerings and roles.

Measuring our journey

As we continue on our change journey, we will measure ourselves against our current remit and, further down the road, more fully against our new remit. Our annual reporting over the next four years will be guided by measures defined in two key documents:

  • measures defined in our budget appropriations each year
  • measures defined in our output plan (our performance agreement with our Minister) each year.

These documents are publicly available on our website (output plan) and the Treasury’s website (budget appropriations).

We are currently refreshing our performance framework and reviewing the performance measures for both of these documents in light of our new strategic direction. We expect that, over time, our measures will more closely align with the key changes described in this strategic intentions document.

We have mapped out the results we need to achieve over the next four years to reach our strategic direction, which we will review and adjust on a six-monthly basis. They are incorporated into our output plan. Our journey of accelerated evolution is an agile one, which requires smart planning and adaptable approaches. Our intention is that our approach and how we will measure it will remain relevant throughout our journey.

Sitting above all of these measures are our goals:

  • double the value of the data provided by Statistics NZ to New Zealand by 2018
  • create a tenfold increase in value of the data provided to New Zealand by 2030.

These goals will remain the key focus for measurement across the life of the 2016/17–2019/20 strategic intentions.

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