Governing strategically: the New Zealand experience

This article describes the evolution of New Zealand's approach to the strategic direction of its public service during a decade of reform. Problems of atomization and short-termism which emerged from the first phase of reform were addressed through the adaptation of the Cabinet and central agency processes for policy, budget and management. © 1998 John Wiley & Sons, Ltd.     

Public management reform and lessons from experience in New Zealand

This article is edited from a speech delivered to the University of Victoria, Wellington—IPMN Workshop on the theme lessons from experience in New Zealand. The author articulates a number of lessons that have been learned, and identifies some lessons that should have been learned. Scott writes from the perspective of having been directly and centrally involved in the development and implementation of what has been characterized as “the New Zealand model” of public management for more than twenty years, a record of service that continues to date. The views expressed also benefit from extensive consulting by the author for governments around the world. Among the lessons learned are (a) the need for clarity of roles, responsibilities and accountability in the implementation of management reform, (b) the importance of matching decision capacity to responsibility, (c) the significance of ministerial commitment and clarity on expectations, (d) the advantages gained from structural innovations within the New Zealand cabinet, (e) the need to analyze disasters carefully for what they teach, (f) approaches to embrace and foibles to avoid in implementing performance specification, (g) problems caused by confusion over ownership and improper assessment of organizational capability, (h) the fact that actually doing strategic management in the public sector is hugely complicated, (i) that it is time to put an end to the notion that there is an “extreme model” of public management in application in New Zealand, and (j) that public management, government and governance innovations in New Zealand are no longer novel compared to those advanced in other nations. With respect to lessons not learned satisfactorily, many are simply the dark shadow of positive lessons, i.e., having not understood or implemented the successes achieved in some parts of New Zealand government into others. The author concludes with an admonition to avoid jumping too quickly, in response to post-electoral rhetoric, to the conclusion that past reforms in have to be modified quickly and radically, and that the New Zealand Model has failed.     

Strategic coalition voting: Evidence from New Zealand

Whereas the classic literature on strategic voting has focused on the dilemma faced by voters who prefer a candidate for whom they expect has little chance of winning a seat, we consider the dilemma faced by voters in PR systems who do not expect their preferred party to be in government. We develop hypotheses relating to strategic voting over multi-party governments that we test using the New Zealand Election Study (NZES) campaign study of 2002. We find evidence that expectations play a role in structuring vote choice. While there is clear evidence of wishful thinking there is also evidence that voters respond to expectations about government formation. These expectations may mobilize voters and lead them to defect from their first preference.     

Sharing natural resource management responsibility: Examining the New Zealand rock lobster co-management experience

Co-management, in which government and resource users share responsibility for managing a natural resource, is attracting considerable attention in both public policy and common pool resource research. However, little is understood about how this approach arises in a mature regulatory setting, or about its strengths and weaknesses. This study uses the experience of the New Zealand rock lobster (Jasus edwardsii and Sagmariasus verreauxi) industry to illustrate what co-management is and how it develops. This is followed by an assessment of co-management in this regime. Development of co-management is an evolutionary process that requires commitment from both government and industry. Strengthened property rights and management expertise provide the incentives and tools to develop a robust co-management regime. However the characteristics of the property rights bundle must be carefully matched to the regime’s biological, social, and regulatory setting.     

Developing a Municipal Performance-Measurement System: Reflections on the Atlanta Dashboard

Under the leadership of Mayor Shirley Franklin, the City of Atlanta introduced a new operating model for municipal government in early 2002. A central component of that effort has been a performance-measurement system—the "Atlanta Dashboard"—designed to assess various aspects of municipal performance and, through that assessment, to improve the efficiency and effectiveness of municipal services.     

Reforming the public sector for leaner government and improved performance: The New Zealand experience

Over the 10 year period from 1984 to 1994 New Zealand has gone through an intense period of restructuring, both of the public sector and of the wider economy. In the process New Zealand has been transformed from a highly protected and regulated economy with a range of intrusive and expensive interventions, to an open and deregulated economy with an efficient and leaned down public sector. The article presents the “New Zealand experience” in restructuring, not necessarily as an example to be copied but as a benchmark to be used in examining the most appropriate restructuring to apply in other circumstances. The stages in the reform are described and the three key success factors set out. One of the key factors is the establishment of a set of clear principles which are then applied with determination. The principles developed in the New Zealand context are set out. The article examines the restructuring of the science sector in New Zealand as one case study; in part because of the author's personal involvement but also because it is a particularly complete example. Areas where work remains to be done are identified including the reforms in education and health and the need for collective action across government. Finally lessons to emerge from the New Zealand experience are discussed. These include especially putting time into fully understanding market characteristics before a market oriented reform is started, carrying reforms through to their conclusion rather than stopping partway, and establishing clear principles to guide the reform process.     

Whither the New Zealand Experiment: Thermidorean Reaction or Rediscovering the Importance of Capacity - Some views from New Zealand

To trace the main trajectory of New Zealand's public management reforms, let us take some recent assessments from two Prime Ministers ‐ one who initiated the reforms, the other who inherited them.

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The Provider/Purchaser Split: A Report from New Zealand

This article focuses on a narrow topic: the provider/purchaser split. It discusses the theoretical arguments justifying the separation of state agencies providing goods and services from the agencies which purchase those services on behalf of government. It also discusses some of the main criticisms of the theory and briefly reviews application of the theory to reform of New Zealand's state sector provision of policy advice, health care and scientific services.     

Proportional representation and attitudes about politics: results from New Zealand

PR systems often are credited with producing more equitable outcomes between political parties and encouraging wider social group representation than majoritarian systems. Theory suggests that this should instill greater trust, efficacy, and faith in the political system. We assume that citizens disadvantaged by majoritarian rules (political minorities) will have a relatively greater shift toward positive attitudes about democracy following a transition from a majoritarian system to proportional representation. We employ panel data from the 1993–1996 New Zealand Election Study (NZES) to test hypotheses about the effects of electoral system change on attitudes about governmental responsiveness, trust in government, and political efficacy. We find that there is a general shift in mass opinion toward more positive attitudes on some measures of efficacy and responsiveness. Political minorities display a greater shift toward feelings of efficacy than other voters.     

Symposium on public management teform in New Zealand:: Reflections on the international public management network/victoria university workshop

The genesis of the workshop on public management reform in New Zealand, held in Wellington on March 10, 2000, was an invitation from the International Public Management Network to the Graduate School of Business and Government Management at Victoria University to organize and co-host a one-day event in Wellington following the Network’s Sydney 2000 Conference. Approximately sixty people attended the workshop. The majority of attendees were senior public servants in the New Zealand government. In addition, there was a representation of academics from New Zealand and Network members who came on from the IPMN conference in Sydney at Macquarie Graduate School of Management March 4–6.The mix of speakers was strongly weighted towards practitioners, as is reflected in the articles in this symposium. The three central agency contributions are all from officials who have a reputation for thinking creatively and critically about the future of New Zealand public management, Derek Gill, Andrew Kibblewhite and Anne Neale. Graham Scott kindly agreed to provide the keynote address. Robert Gregory, a well-known critic of the New Zealand reforms, was the sole academic voice in this small chorus of practitioners. Gregory would be the last to claim that he is “representative” of anyone’s opinion other than his own.     

Effectiveness: the next frontier in New Zealand

Central agencies face a critical test on how to approach the resolution of issues and problems related to improving the New Zealand public sector management systems from the author’s perspective. A decade has passed since the legislative changes were approved that initiated major financial management reform, and much of the initial reform energy has faded. It is time to assess what has and has not been achieved, and to search for ways to continue to move forward. There is a sense of anticipation, as well as some apprehension, across the New Zealand public sector, particularly in light of the election of a new Government. As New Zealand moves into a new phase of reform, one of the key challenges is to take advantage of what has already been achieved. New Zealand has one of the world’s leading public sector management systems, and should take advantage of that foundation. The key issue focused on in this article is effectiveness. A critical part of raising effectiveness is enhancing information. Better information is needed on outcomes, and it should be packaged in more accessible and relevant ways. More disciplined evaluation of the effectiveness of what is done is necessary. Systems that encourage public servants to raise their horizons should be improved or put in place. Managers who understand what they are doing and why are critical to reform success. Purchase agreements—or output agreements—will play a pivotal role, but they need to be improved. A fresh approach to output specification to better accommodate the range of output relationships that exist is required. Central agencies can facilitate customization of output specifications by being clearer about the basic output framework, and more flexible about how that framework is applied. Outcome measures should be refined and used along with outputs where feasible. Better ways must be found for managing problems of inter-agency coordination. Technology offers a new set of tools, but IT facilitates rather than creates effective relationships. Other coordination mechanisms that help agencies to communicate and to make trade-offs must evolve. New Zealand can move into a new phase of building a “world’s best” public sector. The public sector has an appetite for action at the moment, and a willingness to debate the issues. How this potential will be used is, to a great extent, the critical issue faced by the new Government.     

A New Zealand Tragedy: Problems of Political Responsibility

New Zealand's state sector reforms, designed to enhance accountability and efficiency, have attracted considerable international attention. However, an unprecedented tragedy in April 1995 involving the deaths of 14 young people, and which resulted from the failings of the department of conservation, has raised doubts about whether the reforms actually clarified or clouded issues of political and managerial responsibility.     

Lesson-Drawing from New Zealand and Covid-19: The Need for Anticipatory Policy Making

The Covid-19 pandemic has seen most governments worldwide having to think on their feet rather than implementing detailed and well-rehearsed plans. This is notwithstanding the fact that a pandemic was bound to happen, sooner or later (and will happen again). The effectiveness of national responses has varied enormously. Globally, New Zealand has been perceived as setting the gold standard in ‘curve crushing’, and for a short period achieved Covid-free status. For this achievement, much credit is due to the New Zealand government, especially to Prime Minister, Jacinda Ardern. However, post-lockdown the New Zealand government has encountered a number of Covid policy implementation problems (many of which could have been anticipated). Nevertheless, Covid-19 might still turn out to have been a seismic shock to existing policy processes and policy frames (such as austerity). If so, there are grounds for hope that in the future, governments and voters might be less short-term in their outlook. Perhaps anticipatory, rather than reactive policy making, might become more fashionable?