Review for the New Zealand Transport Agency Waka Kotahi - Performance Improvement Framework
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Performance Improvement
Framework
Review for the
New Zealand Transport Agency
Waka Kotahi
April 2018
Performance Improvement Framework – Review for the New Zealand Transport Agency a
Contents
Accepting the Challenge 3
The New Zealand Transport Agency’s commitment 4
Central Agency support 9
The Challenge 11
Four-year Excellence Horizon 12
Performance Challenge 14
What will success look like? 20
Strengths and Opportunities 24
Overview 25
Strengths and opportunities in detail 27
Appendices 53
Lead Reviewers’ acknowledgement 54
About the New Zealand Transport Agency 55
Framework Questions 56
Ratings Scale 57
Interviewees 58
Introducing the New Zealand
Transport Agency’s Lead Reviewers
Dr Paul Reynolds Dr Keith Turner
Dr Reynolds currently serves as Deputy Chair of Landcare Research Dr Turner is a professional director and is currently Chair of Fisher
Limited, director of AgResearch Limited, Chair of the Sir Peter Blake and Paykel Appliances Limited and Chair of specialist engineering
Trust, a trustee of the Eastland Community Trust and Chair of the Our consultancy Damwatch. He has several Australian directorships:
Land and Water National Science Challenge. South Australia Power Networks; NSW TransGrid and Victoria
Power Networks Pty Limited. He has recently completed his term
He was Chief Executive at the Ministry for the Environment (MfE)
as a director of Chorus Limited and has previously served on the
from 2008 to 2015, when he also led the Natural Resources Sector
Board of Spark Infrastructure, an Australian listed company, as
Group of Chief Executives and served as chair of the Leadership
Chair of Emirates Team New Zealand and Deputy Chair of Auckland
Development Centre and the Advisory Board to the Victoria University
International Airport Limited.
of Wellington School of Government. Previous senior public service
roles were at the Ministry of Research, Science and Technology Dr Turner has 40 years’ executive experience in the New Zealand
and the Ministry of Agriculture and Forestry. Dr Reynolds began his power industry, including as CEO of Meridian Energy, from its
career as a research scientist at the University of Missouri, then at the establishment in 1999 to 2008. He holds a PhD in electrical
Department of Scientific and Industrial Research and HortResearch. engineering and is a Distinguished Fellow of the Institute of
He holds a PhD in Biochemistry from the University of Otago. Professional Engineers of New Zealand.
He has been a Lead Reviewer for the PIF Reviews of Ministry for He has been a Lead Reviewer for the PIF Review of Ministry of
Pacific Peoples, Crown Law Office, Ministry for the Environment and Transport.
Ministry of Transport and for the PIF Follow-up Review of the Ministry
of Culture and Heritage.
Published April 2018. ISBN 978-0-478-43488-0 (Online) Web address: www.ssc.govt.nz/pif-reports-announcements
© Crown copyright
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Performance Improvement Framework – Review for the New Zealand Transport Agency
The Performance Improvement Framework (PIF) enables
State Service leaders to identify opportunities for
improvement, building positive outcomes for
New Zealand.
PIF is designed for agencies in the New Zealand State sector.
The PIF Review is a valuable tool that helps leaders drive organisational change.
Change that will improve future agency performance, resulting in the delivery of
better public services.
Independent reviewers lead each PIF Review. They have significant leadership
experience across New Zealand’s public and private sectors. Their fresh
perspective helps to stimulate ‘new thinking’ amongst agency leaders as they
grapple with the critical issues and challenges that lie ahead for their agency.
The Review is a future-focused exercise. The reviewers consider the questions:
what is the contribution New Zealand needs from this agency and what is the
performance challenge to make that contribution over the next four years?
Taking a four-year horizon encourages medium-term strategic thinking and
helps leaders and agency staff to understand what success would look like.
Then, by considering current capability to meet future challenges, the reviewers
evaluate the agency’s preparedness for the future and describe its performance Peter Hughes
improvement priorities. State Services Commissioner
Each PIF Review delivers a published report, ensuring transparency and
supporting accountability to New Zealanders.
The PIF Review is a valuable tool that helps
leaders drive organisational change.
Performance Improvement Framework – Review for the New Zealand Transport Agency 1
Performance Improvement Framework
Four-year Excellence Horizon
What is the agency’s performance improvement challenge?
Delivering Government Priorities
How well is the agency responding to government priorities?
Delivering Core Business
In each core business area, how well does the agency deliver value to its customers and New Zealanders?
In each core business area, how well does the agency demonstrate increased value over time?
How well does the agency exercise its stewardship role over regulation?
Organisational Management
How well is the agency positioned to deliver now and in the future?
Leadership and Delivery for Relationships People Financial and
Direction Customers and Development Resource
New Zealanders Management
Purpose, Vision Customers Engagement with Leadership Asset
and Strategy Operating Model Ministers and Workforce Management
Leadership and Sector Development Information
Collaboration and
Governance Partnerships Contribution Management Management
of People Financial
Values, Behaviour Experiences of
Performance Management
and Culture the public
Engagement with Risk Management
Review
Staff
Performance Improvement Framework – Review for the New Zealand Transport Agency 2
Accepting the
Challenge
1
In this section:
New Zealand Transport Agency’s commitment
Central Agency support
Performance Improvement Framework – Review for the New Zealand Transport Agency 3
New Zealand Transport
Agency’s commitment
He Waka Kotahi, He Technology is making rapid changes The challenge now is to ensure
to the way people connect and the effective implementation of the
waka eke noa transport choices they have. organisational changes we have
‘Together on one These fundamental changes are
made to bring the strategy to life and
maintain the trajectory and increase
canoe with no inevitable, and exciting, and require
the pace of improvements.
revolutionary as well as evolutionary
exception moving in responses. The changes we are We welcome the reviewers’
the right direction’ making are so we are well-positioned endorsement of our strategy and
Every organisation should to adapt to what customers and operating model and agree with
continuously look to the future of citizens need from us today and them that effective implementation of
where it wants to be and what it tomorrow. the operating model is a significant
needs to achieve. Our 2016 PIF Self- challenge. We are well aware that
The essence of our strategy is to
assessment set us on a path of being success depends on our leaders,
think: system rather than networks;
ready for the future and as a result in particular, living the three DNA
people rather than vehicles; and
the NZ Transport Agency made some attributes and implementing a ’team-
partnerships to create more customer
significant and fundamental changes of-teams’ approach to bring the full
value. The desired behaviours to bring
to our strategy, culture and operating potential of the operating model to life.
the strategy to life are to be curious,
model. The 2017 independent PIF collaborative and customer-focused.
Review has validated those changes Locking in these changes is our new
and provided valuable insights for operating model that, together with a
further improvement. supporting organisational structure,
We are grateful to the many staff, business processes and delegations,
customers, council co-investment took effect from 3 July 2017.
partners, and other stakeholders and These changes mean that we are
service providers who provided their now even better placed to play our
perspectives to the reviewers. The role on behalf of the Government The essence of our
feedback and the reviewers’ insights
have provided us with well-grounded
of enabling journeys that provide
efficient, affordable and safe access
strategy is to think:
outside-in perspectives about the to housing, healthcare, education and system rather than
challenges and opportunities we face,
our strengths, and the areas where
jobs and support social and economic
development generally. Our foundation
networks; people rather
we can lift our performance. Such is we have become a complete end-to- than vehicles; and
feedback is essential to being relevant
and delivering better connected
end planner-designer-builder-operator-
regulator. We’re able to deliver any
partnerships to create
journeys for customers and citizens. type of land transport infrastructure more customer value.
We are on the cusp of a
and services. The desired behaviours
transport revolution to bring the strategy to
The world is changing. Customers’ life are to be curious,
expectations are changing and they
expect the NZ Transport Agency to
collaborative and
understand and meet their needs. customer-focused.
Technology is also changing at a rapid
rate – and today’s transport system
has technology at its core.
Performance Improvement Framework – Review for the New Zealand Transport Agency 4
How we will respond More broadly, we are implementing will inform system-focused thinking.
our system-focused approach by This year we will use the current
to the challenges integrating transport decision-making LTSV in the development of the
and opportunities set within wider urban form needs so that 2018-21 National Land Transport
transport investment and services Programme as a source of evidence
out in the Four Year support urban development objectives for projects and programmes that
Excellence Horizon and improve the quality of the urban may come forward in Regional Land
The reviewers set out five key areas living environment. Transport Plans.
for the NZ Transport Agency to We are well placed to develop The LTSV (version two) will be a
focus our efforts on – identified as and implement system-focused step change, more comprehensive
the Four Year Excellence Horizon, solutions. We are shifting to and in a more user-friendly format. It
together with five key action areas take a comprehensive approach will contain system-wide and place-
to meet our challenges. The NZ that balances the provision of based assessments of the land
Transport Agency’s high-level new infrastructure with travel transport system and connections
responses to these are organised demand management and network beyond the land transport system,
under the umbrella of our strategy - optimisation, leveraging off digital incorporating information about
System, People, Partnerships - along technologies and travel information. pressures, opportunities and
with actions identified to meet our A more enabling investment policy possible future responses at
organisational development needs. setting is needed to support a true a transport system level. It will
The responses are interdependent system focus and we look forward support the Ministry of Transport’s
and together identify how we will to playing our role to ensure policy strategic thinking across the wider
give effect to our customer-centred aligns with strategic intent. transport system for New Zealand,
approach and lift our performance to incorporating and building from
meet our challenges. Primary actions we are taking to
the Ministry’s transport futures
embed a system focus fall in two
thinking. The LTSV (version two)
System-focused solutions areas: system-level planning and
will underpin development of the
harnessing technology.
We welcome the reviewers’ identifying 2021-2024 National Land Transport
the increased value we can provide by Programme.
System-Level Planning
taking consistently a system-focused,
customer-centric and technology- Planning is underway to co-create
enabled approach to the performance with partners and stakeholders
and development of the land transport version two of the Long Term We welcome the
Strategic View (LTSV), which has a
system. A systems approach will
lead to improved customer service ten- to 30-year wide view, pulling in reviewers’ identifying
offerings – particularly rapid transport to focus on a ten-year outlook. We the increased value we
and other multi-modal options, as
well as better utilisation of existing
anticipate engaging with partners
and stakeholders on version two
can provide by taking
networks – for people, for vehicles of by late 2018. We will focus on the consistently a system-
all types, and of travel modes.
A systems approach will incentivise
collaborative effort required to bring
it together to ensure its sector-wide
focused, customer-
investment decision-making in system acceptance and uptake and we centric and technology-
performance gaps rather than will prioritise a system focus and
Resilience, Accessibility and Safety
enabled approach to
network links.
perspectives. the performance and
We expect the value of the LTSV to development of the
partners and stakeholders and to
us will increase over time and that it
land transport system.
Performance Improvement Framework – Review for the New Zealand Transport Agency 5
Harnessing technology People-centred services be a key enabler for us to contribute
a step-change in improving safety
We are developing a customer- The reviewers noted opportunities and public health outcomes
centric Transport Technology for the Agency to up its game in for our customers and reducing
Future Plan to operationalise future smart analysis of data to support a environmental harms in our
technology that enables new and customer-centric focus. As part of communities. The reviewers identified
enhanced choices to move around our organisational transformation, some positive initiatives underway
in a safe, efficient and healthy our new Customer Experience & and signalled what could be achieved
manner for our customers. The Behaviour Directorate will gather with a more enabling authorising
plan will identify actions to help us data and generate insight into the environment. Early activities for the
transition to a technology-enabled preferences, needs and behaviours 2018/19 financial year include a new
transport system and to energise of our customers and how well the sector road safety and harm reduction
new and existing service providers transport system is performing for strategy, a safer networks programme
to deliver more and more tailored them, enabling the Agency to better (designing and delivering safer roads)
customer offerings, leveraging off target system performance gaps and initiatives to ensure safer and
the investments we will make. and customer groups experiencing cleaner vehicles.
difficulty. To ensure our solutions work
We will work closely with the Our business planning and therefore
for customers, we are now embedding
Ministry of Transport and others so delivery emphasis over the next three
expertise – like behavioural
that the regulatory and investment years aims to:
psychologists and economists,
policy settings enable innovative
ethnographers, and service designers • reverse the trend of the
technology solutions.
– into key projects, in particular to unacceptable number of road
The two broad initiatives we will support customers to shift modes deaths and serious injuries,
pursue initially are: in urban areas (travel demand underpinned by the ethical
management) and to intuitively operate principle that no-one should die
• widening our operating system
safely. or be seriously injured on the land
to capture and share information
as part of a multi-modal transport Early activities for the 2018/19 transport system, and
system financial year include roll out of • reduce carbon emissions from land
• expanding the Mobility as a customer groupings that enable transport through improving vehicle
Service marketplace offering, Agency projects and teams to fuel efficiency, supporting low
ensuring it plays its role in understand and design for the emission vehicles, facilitating uptake
moving people and goods and diversity of customers using the of public transport, shared mobility,
encouraging others to provide transport system; establishing a walking and cycling, and managing
mobility services on the platform. customer panel and segment networks speeds to optimal levels. We intend
that enable us to gather deep insight to continue to mitigate the adverse
quickly and test or co-create new impact of the land transport system
ideas; and setting up an analytics on the natural and built environment.
forum to co-create an evidence The reviewers have identified
base with and for local government the opportunity to improve our
partners. We will also ramp up regulatory systems to ensure they
capability around smart analytics and are both relevant and responsive
integrated modelling, focusing both to current and future customers
on delivering to priority initiatives and and technologies. We are excited
creating foundations for faster, smarter by the potential for positive change
analytics in the future. in this area. We will work closely
Safety is fundamental to a system with the Ministry of Transport and
designed for people. A new Safety others to identify the customer value
and Environment Directorate will from a change to a principles-based
Performance Improvement Framework – Review for the New Zealand Transport Agency 6
regulatory system. A regulatory Partnerships with others to A whole-of-government joined-up-
management strategy, framework and create value approach to developing the LTSV and
prioritised programme of work are using it to inform investment priorities
in development, to complement and The reviewers have identified will enable us to contribute to wider
support the Ministry of Transport’s the opportunity to improve our outcomes in cities and regional
role in regulatory stewardship for relationships with planning and communities. This is our opportunity
the transport system, with the first investment partners and stakeholders. to inform shared understanding and
deliverable to be the strategy by We have more to offer to ensure coordination of wider government
mid-2018. that transport plays its full role investment interests (e.g. transport,
in supporting wider government health, education, housing,
We will also commence a outcomes. environment) and support integrated
comprehensive review of new and
We will strengthen our partnerships decision-making to optimise public
used vehicle entry certification
with public sector colleagues to value over time.
processes focussing on how we get
the most from the current regulatory ensure that transport investment We will ensure that our traditional and
system and identifying opportunities and services contribute to wider enduring partnerships, particularly
to enhance the regulatory settings to social and economic development, with local government agencies,
deliver benefits to citizens. particularly for urban development. are strategic and have a long-
The primary focus will be on using term outlook. We already stretch
The analysis supporting the regulatory
development of the LTSV (version beyond merely transport outputs,
work programme will inform,
two) as an opportunity to collaborate as evidenced by our partnerships
consolidate and focus on those parts
with central and local government with local authority spatial planning
of the regulatory system where we
and with other transport partners partners and by our support for the
need to deliver better customer value
and stakeholders to build a shared Government’s housing initiatives
as soon as possible, such as: online
understanding of the transport and investments. Ensuring a thriving
services; a more effective approach to
challenges ahead. The goal is that Auckland is vital and we will continue
compliance across the land transport
the LTSV becomes a sector tool to work with Auckland and deliver the
regulatory system and updating the
that is co-created with our partners, transport solutions it needs.
rail regulatory framework.
accepted by them, and used as the
shared evidence base for our short- to
medium-term investment and delivery
decisions as well as our long-term
planning.
We will ensure that
our traditional and
enduring partnerships,
particularly with local
government agencies,
are strategic and have a
long-term outlook.
Performance Improvement Framework – Review for the New Zealand Transport Agency 7
Organisational development We will finalise, and begin The value we deliver at the NZ
implementation during 2018 of, Transport Agency is to be part
The reviewers have identified the need of creating a better New Zealand
our Business Technology Plan.
to implement fully the organisational by enabling “Great Journeys to
Initiatives will include increasing
changes that underpin achieving the Keep New Zealand Moving”. The
online customer-centric services
challenges set out in the Four Year PIF Review has been timely, the
and generating more effective
Excellence Horizon. The scale of reviewers’ insights helpful, and central
customer insights. In addition, the
organisational change is significant. agency and Ministry of Transport
plan will cover the provision of more
We know that strong leadership commitments to support us necessary.
effective corporate systems and tools
across the Senior Leadership Team
to support collaboration, improve
is essential. Our business plan for We are excited about being able to
information management and core
2018/19 to 2020/21 will continue the play our role more effectively over the
financial services processes, as
current organisational development next four years, helping people get
well as the necessary investment in
focus as we transition fully to the the most out of life and supporting
foundational technology services,
desired behaviours and ways of business.
such as cyber-security, service
working and develop the underpinning
management and collaboration tools.
enterprise systems and processes to
bring our operating model to life. We will also undertake work to identify
the longer-term investment options
Particular emphasis over the next needed to support a truly digital
year is to: organisation in the future.
• complete our Workforce Strategy,
including a Capability and
Capacity Plan, by mid-2018
• start implementation by supporting
Diversity and Inclusion
• develop and retain the necessary
capability and capacity to deliver
and support data analysis and
digitally-enabled services in the
We are excited about
future. being able to play our
role more effectively
over the next four years,
helping people get the
most out of life and
supporting business.
Dame Fran Wilde Fergus Gammie
Acting Chair Chief Executive
Performance Improvement Framework – Review for the New Zealand Transport Agency 8Central Agency
support
The New Zealand Transport Agency MoT and the three Central Agencies, Technology as an
(NZTA) leads infrastructure build State Services Commission, the
and management and regulatory Treasury and the Department of enabler
functions on behalf of the Government the Prime Minister and Cabinet, The reviewers highlight the significant
to deliver and maintain an effective, will provide effective support and opportunities presented by new
efficient and safe land transport assistance to NZTA to respond to mobility options and embedded
system for New Zealand. It is a well- its performance challenge. Of the smart technology, and challenge
regarded high-performing agency five areas of focus for NZTA, three in NZTA to improve its capability to
and it has already recognised the particular provide a major opportunity take advantage of new technologies.
need to change its strategy, culture for NZTA and MoT to work more MoT has an important role to play,
and operating model to meet current closely together. in shaping regulatory settings to
and future transport challenges and accommodate new technologies,
opportunities for its customers and for The transport and in developing policy and
New Zealand. strategy system investment settings through the
Those challenges include: increasing Government Policy Statement (GPS)
The reviewers challenge NZTA to
customer expectations, the need to on land transport that guide NZTA’s
iterate its own Long-Term Strategic
co-create transport solutions with investments. MoT and NZTA will need
View with the work of MoT as it
others, the differing needs of each to collaborate closely for MoT to
develops the medium-term strategy
region, disruptive and transformative develop a strong strategic framework
for the New Zealand transport system.
technological developments, the for technology as part of its wider
MoT will lead a process with NZTA,
impact of natural hazard-related system leadership role.
other transport agencies and across
events and climate change. the broader public sector, liaising with The regulatory
The Lead Reviewers commended Ministers, to co-create a strategic
NZTA’s recognition of, and vision for transport over the medium- system
commitment to, the need to change (and longer-) term. The reviewers also highlight the
fundamentally how it views and This work will produce a strategic opportunities presented by moving
undertakes its role in the transport approach and outcomes framework the regulatory model for the transport
system. They identified, for the that reflect the widest set of public system away from a prescriptive
agency’s performance challenge, five policy objectives. It will be a truly approach towards a more flexible
areas of focus in the next four years. multi-modal, systemic approach. This model. MoT is very focused,
will need NZTA’s unique insights into consistent with its own PIF Review, in
There is a high level of alignment
customer experiences, how regulatory leading a review of regulatory design
between this PIF Review and
and investment settings operate in and practice. MoT looks forward to
that of the Ministry of Transport
practice in the land transport system, working closely with NZTA in fulfilling
(MoT) published in January 2018,
and the challenges of building and this challenge.
highlighting a real opportunity for
the two agencies to step up their managing transport infrastructure that
respective roles together to transform delivers value over time.
the transport system, working with NZTA also has strong channels to,
other key players across national and presence in, regional and local
and local government and the private communities, and works in partnership
sector. with a wide range of stakeholders.
Success will require each agency to
play to its strengths and to recognise
and value what others bring to the
process.
Performance Improvement Framework – Review for the New Zealand Transport Agency 9The Central Agencies are committed to providing support to NZTA, where able to
do so, including:
• in conjunction with MoT, supporting a work programme that creates an
effective policy, regulatory and fiscal environment that allows NZTA to make
investment decisions leading to better transport outcomes
• supporting key strategic issues and projects such as implementing the GPS
and significant investments requiring direct central government intervention or
financial support
• ensuring that NZTA’s work is joined up with other government agencies
and processes and that we leverage NZTA’s contribution to policy work
programmes.
Peter Hughes Peter Mersi Gabriel Makhlouf Andrew Kibblewhite
State Services Secretary for Transport Secretary to the Treasury Department of the Prime Minister and
Commissioner Cabinet
Performance Improvement Framework – Review for the New Zealand Transport Agency 10The Challenge
2
In this section:
Four -year Excellence Horizon
Performance challenge
What will success look like?
Performance Improvement Framework – Review for the New Zealand Transport Agency 11Four-year Excellence
Horizon
In undertaking this PIF Review the Lead Reviewers considered: “What is the
contribution that New Zealand needs from the New Zealand Transport Agency
(NZTA) and, therefore, what is its performance challenge? And, if NZTA meets
the performance challenge, what would success look like in four years?”
Context Due to geography and history, there is In New Zealand, funding for land
a high usage of private road transport transport services provided by the
Transport systems are entering a compared to public transport by Government comes primarily from
time of disruptive change driven New Zealanders. Over 3.5 million light hypothecated taxes. These are
by, amongst other things, the rapid passenger vehicles (light passenger collected via fuel excise, road user
emergence of new technologies and cars and vans) contribute 75% of road charges (applied to diesel-powered
increasing global demands for de- travel. Ownership of light vehicles vehicles only), tolling, motor vehicle
carbonisation. Industry is engaging (light passenger vehicles and light registration and licensing fees and
actively with new technologies that goods vehicles) in New Zealand is management of Crown land. This
allow improved and/or innovative the highest per capita in the world. revenue is supplemented by Crown
service delivery and cost reduction. The average age of the light fleet is appropriations from time to time in
Some consumers are early adopters; 14.1 years, considerably older than special cases. With pressure to reduce
others will follow as new technologies in comparable countries (Canada, the use of fossil fuels it is likely that
and technology-enabled services Australia and USA). New technologies the funding from fuel excise duty and
deliver better travel experiences, may assist in addressing the current road user charges will decline.
greater access and efficiency, geographic challenges and have the Technological developments provide
improved safety and cost savings. potential to reduce or, perversely, to new options to address the challenges
Depending on how it is delivered, reinforce New Zealanders’ attachment of access pricing and the funding
transport can be an enabler for, or to private transport options. required to build and maintain the
impede, economic growth and social infrastructure needed and to ensure
There are increasing pressures
participation and cohesion. There equitable access within and across
on the country’s land transport
are particular transport infrastructure generations.
infrastructure, including in the regions,
challenges in New Zealand due arising from population, tourism and There will be ongoing public scrutiny
to the country’s geography, small economic growth, with consequential of the acquisition and usage of
population for its land mass, as well increases in freight. Recent major transport corridors, infrastructure
as the concentration of around 30% earthquakes and weather events have investment and asset maintenance,
of the population in Auckland and the highlighted inherent weaknesses in operation of the State highway
balance widely dispersed throughout the resilience of that infrastructure and network, public transport options and
the rest of the country. Individuals and in the robustness of the network and the development and enforcement of
businesses make location decisions alternate transport options. land transport regulations.
and choose what transport modes
Safety has been an important driver
to use and what to invest in vehicles
for the regulatory model for land
based on the quality and efficiency of
transport in New Zealand. But there
surrounding transport infrastructure,
are challenges under the current
land transport links and, in urban
regulatory regime to allow for
centres, public transport options.
innovative vehicles and transport
services, as well as the needs of
differently abled drivers and a wide
range of highway, urban and rural
driving conditions. In addition, some
smart technology innovations may be
stifled by a preoccupation with risk
minimisation.
Performance Improvement Framework – Review for the New Zealand Transport Agency 12…within this context As a consequence, it is difficult to This Review has been
predict the level of success of this
This Review has been conducted transformation at this early stage conducted at a time when
at a time when there is fundamental
transformation underway inside
in the journey. However, there are there is fundamental
many attributes about the changes
NZTA. It is being reorganised from underway that are timely and designed transformation underway
an organisation that operated
largely in functional silos to a value
to overcome past organisational inside NZTA.
weaknesses, including the challenge
chain organisation. Central to the of meeting customers’ ever-increasing
value chain is a focus on design demand for efficient transport
and delivery of customer service, services, especially in Auckland
as distinct from its historical role of and in regional centres. There are
delivering products such as road a number of issues associated with
infrastructure, public transport the transformation itself meeting its
subsidies and regulation with limited objectives that are identified later in
understanding as to whether these this report.
products individually and collectively
met the needs of users. The performance challenge and
success scenario outlined below are
This is a far-reaching and provided in this context.
fundamental transformation both of
the agency’s objectives and in the
way it undertakes its business and
processes.
Performance Improvement Framework – Review for the New Zealand Transport Agency 13Performance
Challenge
Performance Performance We think NZTA paints a compelling
picture for its future. In developing
challenge - outcomes challenge – agency our Four Year Excellence Horizon for
New Zealanders want an effective, In its own four-year excellence NZTA we have focused on five key
efficient transport system that meets horizon developed to support its areas where the agency needs to
their economic, social-cultural transformation and to inform this focus its efforts in order to meet the
and environmental needs now and Review, NZTA identified five high-level challenge it has set itself. These areas
adapts to meet changing needs challenges: are:
and aspirations; that demands a • the transport strategy system
• increasing customer/citizen service
step change. It means an integrated
expectations • transport disruption driven by new
transport system that:
• government expectation that NZTA mobility options and embedded
• provides the platforms and co-creates wider outcomes with smart technology
processes enabling New Zealanders others • the transport regulatory system
to gain equitable access to goods,
• the relative importance of Auckland • organisational transformation
employment and services
• the pace of digital platforms and • stakeholder management.
• optimises the potential of all modes
services becoming available that will
• increases utilisation of the land improve customer journeys The transport strategy
transport infrastructure for which
• responding to significant natural
system
NZTA is responsible
hazard and climate change-related NZTA, as part of its current
• is resilient events. organisational transformation, has
• is safe for customers to use, It identified its response to these developed its Long Term Strategic
delivering them seamless journeys challenges in three domains: View. This has a 10-year plus outlook
• takes advantage of technology as it and was developed with some limited
• a system response that delivers input from local government. To be
becomes available
one connected transport system effective this work must iterate with
• anticipates disruptive change and
• a service response that sees the work of the Ministry of Transport
makes the most of it for the benefit
people-centred services (MoT) as that organisation develops its
of users of the transport system and
• a community response that ‘Mezzanine’ or medium-term strategy
New Zealanders.
sees NZTA unlocking social for the New Zealand transport system.
and economic opportunities NZTA will bring to MoT valuable
for customers, businesses and operational context and MoT should
communities through targeted bring to NZTA a broad transport policy
partnerships. perspective, informed by the wider
economic, environmental, social and
cultural outcomes that the Government
is seeking. This will help bring NZTA
firmly into the transport system.
Performance Improvement Framework – Review for the New Zealand Transport Agency 14Other stakeholders, partners and Transport disruption driven Smart analytics – NZTA needs to
customers need to be brought into by new mobility options and up its game in smart analysis of
development of NZTA’s Long Term embedded smart technology its data. For example, it needs to
Strategic View to ensure that it is both derive insights about customers’
widely informed, widely supported Transport is undergoing significant wants and needs from data
and highly regarded. This will drive a disruption, driven by the intersection collected that reveal customer’s
more strategic approach to Regional of three phenomena: preferences, needs and behaviours.
Land Transport Plans, encouraging • The first is the new mobile The challenge here is not just a
the agency to leverage those ‘hardware’ appearing in the system technical one; it also demands new
partnerships and achieve improved - electric vehicles, autonomous capability (behavioural economics,
asset management, network utilisation vehicles, drones, platoons1, and so market analytics, industrial
and customer service. on. psychology) and a customer-centric
focus.
Such an interlinking approach • The second is the smart technology
to strategy will better inform the embedded in everything from new Technology foresight – NZTA
Government Policy Statement on mobile hardware, to the horizontal needs to develop further its
Land Transport (GPS), leading to infrastructure itself, to the devices technology foresighting function.
shifts (over time) in the National carried by people journeying on A lot of innovation is happening
Land Transport Programme, making transport networks. internationally that New Zealand
it more multi-modal and inclusive of • The third, particularly in urban is well behind on. Much of this
future technology. Even where the centres, is a customer-desire shift. is embedded technology (for
GPS is not directing investment in Some people are now open to a example, sensor signs, RFID chips)
infrastructure for rail, sea, air, self- wider choice of mobility options – that has the power to change
propelled and ’3D-Land’ transport, and these shared service options the way in which people use the
it needs to be intelligent about the are made more visible and attractive transport system. Technology also
intersections between modes to now on new technology platforms. puts power into the customers’
ensure there is an integrated, resilient, hands to demand and select the
The performance challenge for NZTA
customer-focused, multi-modal transport services they need. Smart
in this area lies in three dimensions:
transport system. New Zealand and technology has the potential to
users of the transport system need to Information systems – NZTA needs enable much better utilisation of
be able to take full advantage of all to position itself to make use of the the capital-intensive infrastructure
modes operating as a system. datasets it holds. These datasets already built, freeing up funding to
are currently distributed and drive much smarter services, at the
The time has come to develop a
separately compiled and NZTA has same time giving customers wider
genuine all-of-transport strategy
a challenge to develop an integrated choices of access and service for
system across all modes that will
approach to the way in which those mobility.
shift the focus from simply providing
datasets are gathered, assembled
infrastructure to one where transport Overall, NZTA needs to improve
and stored.
is a key enabler of New Zealanders’ its capability to take advantage of
success in their lives, environments disruption in transport due to new
and enterprises. As the largest mobility options and embedded smart
operational agency in the system, technology, driving intelligence out
NZTA has a key role to play. of it and using it for risk management
purposes.
1 ‘Platoon’ in this context refers to the concept of a number of trucks using smart technology to drive in close
formation at a constant speed. There is interest in this overseas, especially for long-haul cross-continental freight
journeys, with expected benefits claimed being improved safety, lower overall fuel consumption and more efficient
use of roading networks.
Performance Improvement Framework – Review for the New Zealand Transport Agency 15The regulatory system • alive to the need to regulate We believe the journey
different things (e.g. for drones
The current regulatory system is enforcing the first 400 feet, or the agency is on, bringing
exhaustively prescriptive with many
rules written into legislation. This
extending regulatory coverage ‘service’ and ‘the customer’
to the first 1000 feet, or how
means that even developmental transportation information is to be the central focus, is
changes in regulations may require
changes to legislation. This is a
gathered and managed). the right one.
NZTA cannot do this work alone.
significant barrier to achieving a
Reflecting the change in its
flexible regulatory model that can
operational model, it needs to do this
be adapted in the same timeframes
as apply in the present disruptive
work with partners, stakeholders and The size of this
customers. In particular, it will need
environment. The cadence between
regulatory change and technological
to be in lockstep with MoT and be transformation challenge
innovation is completely out of
supplying data and analysis to support is a large one, and to
regulatory change.
balance. achieve this challenge
To shift the regulatory model is a Organisational will require a sustained
significant challenge. It will require a transformation
change in attitude and skill within the leadership effort,
We believe the journey the agency
agency and amongst its key policy
is on, bringing ‘service’ and ‘the demanding agility,
partners. The current regulatory
system, whilst it may be archaic, customer’ to be the central focus, is emotional intelligence and
the right one. Without the changes
needs a good shove. As much as
being driven now in the operating persistence, over the next
can be achieved, within the current
legislation, needs to be achieved. model, the agency will not be able to four years.
There is no incentive to change respond to technology shifts and the
legislation just to make the work of the accompanying change in demands of
agency easier. The need for change customers.
must be manifest and the opportunity Transformation is a leadership
costs of ‘no change’ must be exposed. challenge. While NZTA has a well-
All of the thinking and analysis driven earned reputation amongst many of
by the new customer focus of the its stakeholders as a high-performing
agency needs to be brought to the organisation with a strong focus on
table to design a regulatory system product delivery, over the next four
that is: years there are many aspects of
NZTA’s business that will need to be
• principles-based in much better and different shape,
• responsive in the face of ongoing and managed by the new organisation
disruption and open to extending in a better way than has been the
the regulatory frame where justified case in the past. The size of this
• multi-modal and focused on journey, transformation challenge is a large
not mode one, and to achieve this challenge
will require a sustained leadership
effort, demanding agility, emotional
intelligence and persistence, over the
next four years. Board monitoring of
progress will be important.
Performance Improvement Framework – Review for the New Zealand Transport Agency 16The agency has core strengths, which The change in operating model The challenge for the agency is to:
it can build on. NZTA needs to identify means that leaders in the agency
• reconnect with stakeholders and
and nurture these strengths. For have dependencies on each
explain to them how they can
example, NZTA’s embedded, widely other if they are to deliver on their
interact with NZTA going forward
acknowledged capabilities around individual accountabilities. Access
outcomes-based contracting and to, and transparency in, information • engage stakeholders in the change
alliancing should be taken forward systems is critical to support them the agency is going through,
and, as appropriate, adapted for use in this endeavour. There needs to explaining the rationale, the process
as NZTA contracts for services to be consistency across the board and the time it will take to bed in the
enable and deliver seamless journeys. and common rules and assumptions new operating environment
Such capability will also help it build underpinning everything through all of • enlist stakeholders in the journey
alliances with the other government the corporate functions of the agency. the agency is on, which after
transport agencies and its Safer all is about delivering a resilient
We say much about NZTA’s
Journey partners. transport system that serves those
transformation journey in other parts
stakeholders and their customers.
Another strength that will be of this report. The success of this
If stakeholders own the need for
fundamental to success is the current transformation will not be apparent
change, then change will be durable
pride and enthusiasm of staff for immediately and will likely be one area
and deliver value.
the work of the agency. There is of focus in the PIF Follow-up Review
something special and empowering as it is integral to progress on all other This means the work ethos of NZTA
about NZTA’s customer-centric focus aspects of the performance challenge. has to be one in which collaboration,
that should resonate intuitively for partnership and co-production are the
staff who are already proud to work Stakeholder management norm. Thinking and acting alone is no
for NZTA. Given a behaviour shift and longer part of the organisation’s DNA.
A common theme across many of the
culture change is required, retaining
conversations we had with partners
the pride and enthusiasm of staff will
and stakeholders of NZTA was that
be possible if they understand the
the agency has become inward-
new purpose and direction and what
looking of late. There is confusion
it means for their role and they are
about the change process itself and
supported to make the journey.
concern that interacting with NZTA is
We believe that an ‘underpinning’ becoming more complex, with no clear
performance challenge for NZTA, as touchpoint.
it drives this change, lies in getting
Given that much of the message to the
its information management systems
agency in this report is about pursuing
up to the task. There is no enterprise
a genuine multi-modal system, working
layer of supporting systems in the
with partners and stakeholders
agency. Rather, it has a stack of
and being responsive to the needs
mostly point solutions, acquired
of customers, it is clear that good
over time and largely from a project-
stakeholder management is mission
driven environment. There has been
critical.
underinvestment at the corporate
level.
Performance Improvement Framework – Review for the New Zealand Transport Agency 17Implementation …activating medium term Going forward NZTA will need to think
thinking and connecting it to proactively about the information
The prescription of the Four Year
the transport system it actually needs, to enable a
Excellence Horizon outlined above customer-centric, multi-modal
is demanding. It is a challenge that Implementation of a genuine pan- system of transport that enables
NZTA is already embracing and is transport strategy system should see New Zealanders to achieve in their
making changes in its operating a number of actions emerge over the lives, environments and enterprises.
model to achieve. Underpinning period of the Four Year Excellence
corporate functions, the enablers, Horizon: NZTA will need to use its foresighting
are now together. The core functional capability to be ready to take
• a multi-modal operational approach advantage of increasing embedded
capability of infrastructure design
to the business of NZTA technology across the whole transport
and delivery remains, but now sits in
a value chain of strategy – systems • increased utilisation of the existing system. That capability is present in
– customer service, alongside transport network; for example by the Connected Journey Solutions
policy and planning, investment and giving consideration to dynamic Group. The thinking being driven there
finance and customer design and pricing systems needs to infuse the whole agency.
delivery. Areas of new focus have • a focus on journey not mode of
been elevated and made visible in the transport …making regulation relevant
operating structure: • considering a shift in the funding
and responsive
• Customer experience and behaviour model to achieve a dynamic source To make progress on a fit-for-purpose
of funds (for example e-Road User regulatory system NZTA needs
• Connected journey solutions
Charge) to focus on building the case for
• Transport access delivery change. This will require it to work
• change in the scope of the GPS
• Safety and environment. with others, critically with MoT, with
• optimisation of the system, by
This is positioning NZTA to obtain other regulatory agencies and with all
broadening supporting analysis
and better use customer insight to parties subject to regulation.
beyond the current heavy reliance
co-design solutions that work for on benefit-cost methodologies. It will need to build an alternate
customers. To realise its ambitions regulatory system that will be
and meet the Four Year Excellence …lifting the game in data resilient and responsive in the face
Horizon, we think NZTA needs to acquisition and analysis of change, as well as efficient and
focus on five key action areas: easily implemented. This will require
Over the period of the Four Year
• Activating medium-term thinking Excellence Horizon NZTA needs to a total shift in regulatory capability.
and connecting it to the transport put in place the information systems The new system may be focused on
system necessary to support the agency itself some completely different things. Not
(its corporate core), the work it does only will stakeholders and customers
• Lifting the game in data acquisition
with others, the regulatory system it need to be convinced but also their
and analysis
operates and the procurement and support for change must be enlisted.
• Making regulation relevant and Considerable thought will be needed
contracting environment needed to
responsive to understand the future data required
support its core operational activities.
• Working collaboratively with to support the system. The principles
stakeholders Establishing these systems is developed to underpin the model
necessary, but not sufficient. NZTA must be durable over time and take
• Harnessing technology tools to
will need to lift its capability and advantage of the technology sets
underpin the future transport
its capacity in data analytics and widely used elsewhere. NZTA will also
system, including making a step
insights. Much of the information need to remain alert to weak signals in
change in safety.
available now is not used or not used the system that may require new, and
to its full potential; that is a dividend different, regulatory attention.
sitting on the table.
Performance Improvement Framework – Review for the New Zealand Transport Agency 18Practically, NZTA must remain NZTA needs to work closely with MoT
committed to the current framework to widen interaction with government
and innovate to get as much out of stakeholders to include agencies
the existing system as it is able. The driving outcomes for which transport
opportunity costs of not changing is a key enabler, for example,
need to become clear to all. education, health, welfare.
NZTA will need to develop a level of
…working collaboratively sophistication in how it manages its
with stakeholders relationships with stakeholders, as
To move NZTA’s relationship it may be, simultaneously, funder,
with stakeholders to be in the regulator, partner and collaborator.
collaboration space, the agency will
need to reset its relationships in the …harnessing technology
post-transformation environment. tools to underpin the future
Importantly, it holds the broadest transport system
range of relationships for the
The disruption and opportunity
Government’s transport agencies.
afforded by new technologies are a
It must clarify the regional-central
recurring theme in this PIF Review.
dynamic so stakeholders understand
Working with MoT, NZTA will need to
how NZTA wants to interact with them
make the case for where it invests
and how NZTA intends to continue to
in technological infrastructure to
foster the strong partnership approach
underpin a step change in safety,
that has been key to its success.
regulatory management and new
The effectiveness of stakeholder
transport delivery options. Case
engagements will improve as NZTA
studies about opportunities to deploy
works to increase, and share, its
new technologies are included in the
understanding of customer.
next section.
Performance Improvement Framework – Review for the New Zealand Transport Agency 19What will success look
like?
Here we outline some of the shifts that The regulatory system will be more NZTA will be taking a ‘best teams’
will be visible both within NZTA and effective and better able to match approach in all of its work. It will be
more broadly across the transport the pace of change the sector is highly collaborative, working with
system, as it meets the performance experiencing. NZTA will, through other regulators, policy agencies,
challenge. This is not a list of things transparent processes and smart councils and stakeholders. It will be
that must be done; rather it is a design of the system, have maintained clear about what role it plays and what
picture describing the attributes of and improved the societal licence for role it enables others, in the public
success that will be visible to all. regulation. and private sectors, to play.
A comprehensive transport strategy New approaches to funding that retain
system will be in place with NZTA certainty, but that are dynamic and
…and the outcomes
playing its role in supporting and resilient in the face of change, will be Over the next four years and beyond,
continuing to develop it. The GPS will under consideration or being trialled. New Zealand’s land transport system
be evolving with the system it drives increasingly supports:
Large projects will be driven by a
ensuring an all-of-system multi-modal
wider system context and the place • individuals and families to choose
approach is maintained.
of customer. Procurement will shift to efficient, safe, seamless journeys
Technologies will be in place that consider the life cycle value of those that provide equitable access to
increase the utilisation of current projects. goods, employment and services,
transport assets across all of the so they can make the most out of
The aggregation of data and
modes. The rate of uptake of new their lives
generation of insight will be
technologies that drive efficiencies • businesses to grow faster due to
coordinated across the value chain of
will have increased. NZTA’s focus a reliable, connected multi-modal
NZTA.
on the customer journey, combined transport system that enables
with technology services to enable Strong collaboration between NZTA delivery of their goods and services
customers to search out the and Auckland Transport will see full when and where their customers
most efficient ways to undertake integration of transport management need them
a journey, will be driving this across all modes (both private and
increase in utilisation. Through public) in Auckland, supported by • New Zealand to benefit from
technological developments informed intelligent, embedded data-gathering cost-effective, environmentally
by its customer insights work, systems. sustainable land transport that is
NZTA will have provided improved adaptive, resilient and increases the
NZTA will have deployed enterprise utility of the whole transport system.
access to, and utility of, the land
level solutions that support the
transport system for those who are
thinking, running and doing of the
disadvantaged by the current system.
agency.
Dr Paul Reynolds Dr Keith Turner
Lead Reviewer Lead Reviewer
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