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Key capability requirements in DPMC are fairly constant. They are based on our ability to: attract and retain high-performing staff; maintain agency credibility; build and sustain strong networks and effective working relationships; ensure robust infrastructure; and deliver strong information-management.
Significant staff turnover during 2006/07 focused the department’s attention on recruitment and retention pressures and the best way of managing these. Given its need to maintain specialist knowledge and skills in key roles within a small specialist organisation, DPMC is well aware of the risks of unplanned departures.
In the wake of David Henry’s independent review of its security processes (the Henry Report), DPMC had committed to implementing all of that report’s recommendations during 2006/07. Several of the recommendations related to enhancements to existing recruitment and selection processes. In response DPMC undertook a comprehensive review of its recruitment and selection strategy and processes, in order to ensure rigour and continue attracting staff with the right skills, experience and attributes.
Part of our approach has been to promote DPMC as a great place to hone skills and experience in areas such as policy advice and co-ordination, assessments, and Cabinet processes (Development Goal 1 for the State Services). A good indicator of the effectiveness of DPMC’s recruitment strategy and processes is the calibre of people who have been appointed during the year.
The department has introduced changes to its performance management system, with full implementation scheduled for 2007/08. Key changes include the promotion of more frequent performance and development discussions between managers and staff, and more emphasis on the range of development opportunities available to staff (such as extension, secondment, and stepping-up options). DPMC also formalised a special exchange relationship with the Leadership Development Centre (LDC) as part of the department’s commitment to Development Goal 2 for the State Services.
Staff wellbeing is an ongoing priority. The Senior Management Group (SMG) committed to a Health Check Day for DPMC staff in February 2007: there was a high take-up of this, and staff feedback was very positive.
The department also continued its analysis of staff feedback (from climate surveys, the recent PEER survey results, and exit interviews) to determine possible retention issues. No specific concerns were found, although workload and remuneration pressures will continue to be monitored. Most staff feedback indicates that people like working for DPMC, that morale is good, and that when staff leave the department it is primarily for career progression and not because of dissatisfaction.
One departmental priority has been actions to expand capability for improving whole-of-government performance, which is part of DPMC’s commitment to Development Goals 3, 4, 5 and 6 for the State Services. The department has been working more closely with the other central agencies (Treasury and SSC) to improve the exchange of information and to prioritise areas of targeted performance improvements within the state sector. During 2006/07, the department initiated a major infrastructure-resilience project whose overall objective is to find and put in place ways of improving infrastructure-failure protection for communities. In 2007/08, along with the other two central agencies, DPMC will be leading priority projects aimed at improvements to whole-of-government performance.
The new DPMC Audit and Risk Committee, which was established in June 2006, has met five times in 2006/07 – including participating in a risk management workshop with the department’s SMG. The committee has an independent chairperson (Michael Wintringham, former State Services Commissioner) and includes one independent member (Souella Cumming, a KPMG partner).
The Audit and Risk Committee’s main purpose is twofold: to determine the adequacy, efficiency and effectiveness of DPMC’s management, financial and operating systems; and to determine the effectiveness of DPMC’s risk management framework (including legislative and regulatory compliance).
Particular emphasis is placed on providing assurance to the Chief Executive that internal-control measures are working effectively.
A key programme activity for the Committee during the year has been its receipt of progress reports on the full implementation of all security improvements recommended in the Henry Report. In March 2007 an independent review of DPMC’s actions to improve its security processes in response to the Henry Report was commissioned. The review confirmed that action had been taken on all of the Henry Report’s recommendations, and noted a few areas where further work is required.
Staff changes have slowed some of the initiatives that were earmarked for the 2006/07 year. A change not in direction but in how DPMC support arrangements could be improved has come through the GSN (Government Shared Network), and a Memorandum of Understanding for this was signed in late June.
The latter part of 2006/07 saw two separate security audits, one in conjunction with the other four parliamentary agencies and the second as part of Audit New Zealand’s general auditing commitments. These activities have increased the level of assurance around the department’s IT networks.
Internationally there is an increasing number of viruses, spam, and cyber attacks, with some targeted specifically at government agencies. More internal resource time is required to administer and upgrade the defences, and to patch software on a regular basis.
Blackberry usage continues to grow, putting added demands on our support team. Government House has retained its event-management software, to deliver more efficient updating and co-ordination of the Governor-General’s diary.