Statement of Intent 1 July 2008 - 30 June 2011
Operating intentions
This section of the SOI applies the requirements of section 40 (c) (i) of the Public Finance Act 1989, which requires a statement of ‘how the department intends to perform its functions and conduct its operations to achieve those impacts outcomes or objectives'.
Outcome 1: The Government has security, defence and capability policy options that allow it to respond to the international, regional and local security environment appropriately.
What we are seeking to achieve
With this outcome the Ministry intends that whenever the Government needs to make a decision relating to the achievement of its defence and security sector objectives, it understands the context of the environment within which it has to make decisions and has choices available to it to achieve its desired outcomes.
Specifically, whenever the Government is required to make a decision relating to the achievement of its objectives it will have:
- a range of policy options available to it
- sufficient knowledge to allow it to make the decision with an understanding of the opportunity costs involved and the trade-offs with other areas of policy that may have to be made
- an understanding of the economic implications involved in the options
- confidence that the options presented to it are complete and that each will achieve the desired outcome
- confidence that the options presented to it have been fully consulted between all interested Departments
- confidence that possible unintended consequences have been considered and mitigated against or explained fully.
What we do to achieve this
The Ministry has in place:
- systems to monitor and analyse the international security environment. This ensures that the best possible knowledge of the present and future international security environment is available
- close relationships with like-minded states. These reinforce our own surveillance and analysis of the region through the exchange of information and ideas
- developing relationships with some of the future leaders of the Asia-Pacific region such as China, Japan, Korea, India and Indonesia. These give us additional insights into regional events and attitudes
- processes to assess the validity of capability proposals made by the New Zealand Defence Force. These ensure that rigorous independent scrutiny is given to such proposals from a range of perspectives
- a continuing programme of long-term studies designed to illuminate areas of defence activity that will become important in the future, even if they are not yet salient. These include studies on potential demographic issues and problems (such as recruitment and retention) within the armed forces and on the possible strategic environment looking 30 to 35 years into the future.
How we demonstrate success in achieving this
The Ministry's policy advice is successful if:
- the outcomes at which the advice is aimed occur as intended, within the constraints imposed by factors outside the Ministry's control
- the advice is accepted by stakeholders as realistic and useful
- the advice contributes effectively to the analysis of the issues.
Performance Indicators
The Ministry's performance under outcome 1 is measured by the following key indicators (which take measures of the quality of the intervention as a proxy for cost effectiveness):
- obtaining feedback from stakeholders as to the output quality, timeliness and effectiveness of our work
- identifying key risks associated with capability and performance
- reviewing levels of direct costs and resources as appropriate to production of the output.
Outcome 2: The New Zealand Defence Force is equipped with those major systems and equipments it needs to meet the Government's defence and security sector requirements.
What we are seeking to achieve
The New Zealand Defence Force receives the major equipment items it needs to contribute to government defence policy requirements.
This outcome is based on the statutory requirement for the Ministry of Defence to acquire major capital equipment for the New Zealand Defence Force. Unless these acquisitions are managed effectively, the New Zealand Defence Force will not have the equipment to give military options for the Government to implement its policy choices. This links directly with Outcome 1.
What we do to achieve this
To ensure the success of this outcome the Ministry:
- assesses all equipment proposals against government policy
- ensures that all equipment proposals are analysed in detail to ensure they are technically suitable and financially affordable
- establishes project teams to manage all aspects of equipment procurement
- builds linkages with the New Zealand Defence Force to ensure that the equipment received is the equipment needed and that there is a seamless transition from equipment specification through equipment acquisition to its introduction into service.
How we demonstrate success in achieving this
This outcome is successful if:
- the equipment enters service on time, to budget and with the capabilities agreed by the Government
- the equipment meets the expectations of the New Zealand Defence Force
- there is a seamless handover of the equipment from the project acquisition team to the end user for entry into service.
Performance Indicators
The Ministry's performance under outcome 2 is measured by the following key indicators (which take measures of the quality of the intervention as a proxy for cost effectiveness):
- obtaining feedback from stakeholders as to the output quality, timeliness and effectiveness of our work
- self-review and external evaluations of performance
- maintaining ISO 9001 accreditation in relevant work areas
- identifying key risks associated with capability and performance
- reviewing levels of direct costs and resources as appropriate to production of the output.
Outcome 3: The Government is provided with independent audit advice on the performance of the New Zealand Defence Force and the procurement activities of the Ministry of Defence.
What we are seeking to achieve
Confidence, through provision of assurance, or recommendations leading to improvement, in the efficiency and effectiveness of management systems within the New Zealand Defence Force and the procurement activities of the Ministry of Defence.
This outcome is based on the statutory requirement for the Secretary of Defence to arrange for the assessment and audit of any function, duty or project of the New Zealand Defence Force and of the procurement activities of the Ministry of Defence. We will deliver a range of assessments and audits when required by, or to a programme approved by, the Minister of Defence.
We will also undertake audits of the controls on hazardous substances under the control of the Minister of Defence, as required by the Hazardous Substances and New Organisms Act 1996.
What we do to achieve this
The Ministry maintains a specialist evaluation unit that assesses and audits the performance of the New Zealand Defence Force and the Ministry of Defence in areas such as:
- the delivery by the New Zealand Defence Force of its outputs
- the effectiveness of New Zealand Defence Force management systems and practices
- the management by the Ministry of Defence of major capability acquisition projects
- the system of controls over hazardous substances.
How we demonstrate success in achieving this
This outcome is successful when:
- key stakeholders have confidence in New Zealand Defence Force and Ministry management processes because of the breadth and depth of our audits
- assessments and audits identify areas of needed change in management practices
- assessments and audits are completed according to an approved schedule or as required by the Minister of Defence.
Performance indicators
The Ministry's performance under outcome 3 is measured by the following key indicators (which take measures of the quality of the intervention as a proxy for cost effectiveness):
- meeting annual targets for audit reports
- obtaining feedback from stakeholders as to the output quality, timeliness and effectiveness of our work
- identifying key risks associated with capability and performance
- reviewing levels of direct costs and resources as appropriate to production of the output.
