SOI
SPE
NZ TRANSPORT AGENCY STATEMENT OF INTENT 2017–21
3
10 NZ TRANSPORT AGENCY STATEMENT OF PERFORMANCE EXPECTATIONS 2017/18
NZ TRANSPORT AGENCY STATEMENT OF PERFORMANCE EXPECTATIONS 2017/18
11
INTRODUCTION
HOW WE’LL DELIVER
OUR STRATEGY
This statement of intent presents a new direction for the NZ Transport Agency. Although the organisation
Our eight focus areas describe what we will do in the next three to five years to make the changes signalled
is successful, our operating model can be positioned better to meet future challenges for New Zealand’s
in our strategic responses. These areas confirm where we will direct our efforts and resources to deliver
transport system. Our strategy, supported by a new operating model and organisational structure, addresses
measurable outcomes for our customers and citizens.
these opportunities and comes into effect on 3 July 2017.
The focus area Shape the land transport system sets the overall direction for our activities with specialist
Our strategy positions us to meet rising expectations from our customers, businesses and the government
direction setting for safety coming from the Keep people safe focus area. That direction is delivered by
and responds to significant changes in our operating environment. We must adapt to and make the most of
the five areas: Target rapid growth, Connect and develop regions, Improve customer experiences, Deliver
emerging digital technologies and new transport services, and we must balance our response to the rapid
connected journeys, and Keep people safe. Our internal direction is set and delivered by the focus area
pace of growth in urban areas with the needs of regions.
Achieve organisational excellence. However, in 2017/18, the focus area Transform the Transport Agency will
Our new direction enables us to more effectively deliver on the transport sector goal for a transport system
support our transition to our strategy and ways of working.
that maximises economic and social benefits for New Zealand and minimises harm. It will also contribute
We will reflect our progress using indexes of time series data. This makes it easy to understand a change in
to the government’s wider priorities, providing modern infrastructure and services that support a more
performance from one period to the next, and it enables us to compare variables of different magnitude.
productive economy with more jobs, higher incomes and higher living standards.
F16
Over the next three to five years, we’ll be working to deliver three big changes that form the foundation of our
new direction:
• One connected transport system: Transform the performance of the land transport system by integrating
SHAPE THE LAND TRANSPORT SYSTEM
NZ TRANSPOR
digital technology with physical infrastructure to create a safe, connected system that works for everyone.
Shape New Zealand’s land transport system and influence its delivery
• People-centred services: Simplify our customers’ lives and our partners’ work with innovative services and
NZ TRANSPORT AGENCY
experiences that make it easy for them to do what they need to.
WHAT WE’RE AIMING FOR
• Partnerships for prosperity: Unlock social and economic opportunities for customers, businesses and
Through Shape the land transport system we aim to develop a clear, shared and integrated view of
communities through targeted partnerships.
STATEMENT OF INTENT
New Zealand’s land transport system with our partners and then to identify and enable the main changes
ACT
We’ll make these changes through our focus areas, which capture the outcomes we aim to achieve for
to realise that shared view.
DRAFT
THE
New Zealand.
2018–22
OUTCOME
MEASURE
KEY PERFORMANCE INDICATOR*
HISTORIC TREND
DESIRED TREND 2017/18
T A
In particular, we’ll create digital solutions that make it easier to access and use the transport system and
we’ll improve customer experiences by designing and delivering services that are tailored to their needs.
Transport sector
Partner experience
Index of collaborative relationship process
New indicator
Increase
decision-making,
maturity
Baseline 38.8
GENC
For people and businesses in high-growth urban areas, we’ll aim to make travel more efficient and journey
investment and
times more reliable by leveraging new technologies alongside improvements to the road network. We’ll also
regulatory and policy
Our partners feel we have improved the way we work alongside them to deliver outcomes for
interventions are based
work to improve the performance of the existing transport system to ensure predictable connections, so
their communities.
on a shared long-
Y S
freight can reach retail shelves, consumers and factories on time.
term view of the land
T
Travel on regional and interregional networks will also be more efficient and more resilient (quicker to recover
transport system.
A
from adverse events) to facilitate the flow of goods to market and spread the benefits of tourism. We’ll enable
* See appendix 3 for technical details.
TEMENT OF INTENT
broader social outcomes in regional communities by improving access to transport and the services it enables.
HOW WE’LL GET THERE
To create a transport system that is increasingly free from harms, we’ll work on reducing the impact that
Our approach to planning and investing in the land transport system will be unified and have a focus that
transport has on the environment alongside our enduring focus to keep people safe on our roads.
extends beyond physical infrastructure interventions. We will:
This clear focus on outcomes not only drives our day-to-day work, it also supports our commitment to
• influence and collaborate with our investment and delivery partners to develop an aligned view on the
manage the public’s money responsibly and transparently. By focusing on making a measurable difference,
pressures, state and responses (including timing) at national and regional levels for an integrated land
we invest in the activities that get the most value.
transport system
Every day transport has an impact on communities, businesses, the economy and the environment. Our
• plan with the whole transport system in mind (including the most important interventions required to enable
strategy reflects our clear ambition and firm commitment to do our part in creating a better New Zealand.
one land transport system)
• take a consolidated and coordinated approach to the timing and progress of the agreed interventions,
whether regulatory, policy, planning or investment focused.
2017/XX
CHRIS MOLLER
DAME FRAN WILDE
FERGUS GAMMIE
Chair
Deputy Chair
Chief Executive
9 June 2017
9 June 2017
9 June 2017
UNDER
20 NZ TRANSPORT AGENCY STATEMENT OF INTENT 2017–21
NZ TRANSPORT AGENCY STATEMENT OF INTENT 2017–21
21
44 NZ TRANSPORT AGENCY STATEMENT OF PERFORMANCE EXPECTATIONS 2017/18
NZ TRANSPORT AGENCY STATEMENT OF PERFORMANCE EXPECTATIONS 2017/18
45
HOW WE’LL WORK
PROSPECTIVE FINANCIAL
STATEMENTS
To deliver our strategy we’re changing the way we work internally with a new operating model and
PROSPECTIVE STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE
PROSPECTIVE STATEMENT OF FINANCIAL POSITION
TRANSFORM THE TRANSPORT AGENCY
structure. We’re also changing the way we act with the introduction of an organisational ‘DNA’. We’ve also
FOR THE YEAR ENDING 30 JUNE
AS AT 30 JUNE
Create one strategy-led, people-centred organisation that is fit for
OUTCOME
changed the way we work externally, through a new regional relationship model.
PROJECTED
BUDGET
PROJECTED
BUDGET
the future
We have become a
2016/17
2017/18
2016/17
2017/18
We will deliver these changes through our focus area Transform the Transport Agency (page 20). The
$000
$000
$000
$000
people-centred, strategy-led
focus area Achieve organisational excellence (page 19) will help us maintain our organisational health and
organisation that is supported
capability to deliver our strategic and organisational changes.
REVENUE
ASSETS
INFORMATION
WHY WE NEED IT
by a robust strategy-to-
1982 Funding from the Crown
129,537
181,734
Current assets
To move our customers to the centre of everything we do and deliver our
action process.
NEW STRUCTURE AND OPERATING MODEL
Funding from the National Land Transport Fund
2,039,240
2,209,822
Cash and cash equivalents
50,000
50,000
strategy, our organisation must enable an integrated, collaborative, people-
In March 2016, we conducted a self-review based on the government’s Performance Improvement
Debtor National Land Transport Fund
319,806
356,287
centred approach. Everything we do, whether individually or collectively, must
Framework. The review identified that, while our organisation was successful, our operating model did not
Revenue from other activities
196,375
205,623
Debtor Crown
20,082
27,400
contribute to achieving our strategic outcomes.
position us well to meet future challenges for New Zealand’s transport system.
Assets vested from local authorities
51,000
0
Receivables
91,630
93,450
WHAT WE’RE AIMING FOR
The review concluded that, to meet future demands, we needed to change how we think, act and organise
Total revenue
2,416,152
2,597,179
MEASURES
Property assets held for sale
40,000
70,000
ourselves. We needed a stronger focus on being one agency delivering integrated outcomes, becoming
Our focus area Transform the Transport Agency will allow us to
truly customer and citizen focused, enabling innovation and leveraging new technology fully.
EXPENSE
Other current assets
1,100
1,100
collaboratively lead, manage and embed organisational change processes, so
Organisational
Organisational culture
On 3 July 2017, the Transport Agency moves to a value-chain operating model and organisational structure
Personnel costs
100,095
104,202
Total current assets
522,618
598,237
effectiveness
we think, act and organise ourselves as an integrated, strategy-led, people-
centred agency.
(see figure 1). There will be 11 groups, with strategy, systems and customer service functions at our core,
Operating expenses
190,643
180,674
Non-current assets
KEY PERFORMANCE INDICATOR18
alongside groups focused on customer experience and behaviour and on safety and the environment.
Land transport funding
1,652,778
1,730,313
Debtor National Land Transport Fund
1,003,451
1,475,544
HOW WE’LL GET THERE
These groups will be supported by corporate services, people, and governance, stakeholders and
Index of Performance Index of organisational
Interest and finance costs
24,791
33,779
Property, plant and equipment
23,960
21,878
We will realise the opportunities we identified from our assessment against
Improvement
culture
communications groups.
State highway network
33,586,438
35,444,482
Depreciation and amortisation expense
441,800
448,460
the Performance Improvement Framework to lift our performance and meet
Framework
This operating model will enable us to lift our performance and work together across our internal functions
Public-private partnership assets
545,504
1,014,250
the challenges ahead of us.
assessment ratings
to deliver our strategy. It will help us to be more efficient and agile and ensure we have the right resources
State highway asset write-off
13,000
10,000
Intangible assets
34,298
35,530
(effectiveness)
We will change the way we think, act and are organised to become one
in the right place to deliver our business plan.
Assets vested to local authorities
0
88,800
Loans and advances
1,400
1,400
integrated agency, focused on serving customers and citizens in innovative
DESIRED TREND
RELEASED
Total expense
2,423,107
2,596,228
Derivative financial asset
12,098
11,554
ways. In particular, we will:
CUSTOMERS AND CITIZENS
SURPLUS/(DEFICIT)
• be strategy led with business-planning processes and an organisational
Organisational effectiveness Increase
Baseline 2.7
(6,955)
951
Total non-current assets
35,207,149
38,004,638
structure that mean we have the right people and resources in the right
We improve how effectively we use our
CUSTOMER EXPERIENCE AND BEHAVIOUR
TOTAL ASSETS
35,729,767
38,602,875
OTHER COMPREHENSIVE REVENUE AND EXPENSE
places to deliver our strategy
resources to maximise the benefits we deliver to
LIABILITIES
New Zealanders.
Gain/(loss) state highway network revaluations
543,000
560,000
• embed a new way of working, our ‘DNA’, so that our people share the
Current liabilities
beliefs and values that drive the way we deliver on our strategy.
Net movement in cash flow hedges
100,543
5,416
Payables
382,757
399,078
Organisational culture Increase
Baseline 61.0
STRATEGY
SYSTEMS
CUSTOMER
These organisational changes will require all parts of the agency to commit
Total other comprehensive revenue and expense
643,543
565,416
Tolling funds held in trust
3,000
3,000
Our people’s ability to be ambassadors for
SERVICE
to a single plan to achieve our strategic outcomes, new approaches that
Employee entitlements
9,000
9,000
our strategy, culture and operating model will
TOTAL COMPREHENSIVE REVENUE AND EXPENSE
636,588
566,367
incentivise the behaviours we value, and a new value-chain operating model
improve, delivering benefits for our customers and
Borrowing
15,000
47,000
that will influence the way we organise ourselves.
stakeholders.
STRATEGY, POLICY
SYSTEM DESIGN
CUSTOMER DESIGN
AND PLANNING
AND DELIVERY
AND DELIVERY
Total current liabilities
409,757
458,078
More detail on our organisational changes and our new DNA is included
Non-current liabilities
under ‘How we’ll work’ (page 21).
VERNANCE
Payables
100
100
INVESTMENT AND
CONNECTED JOURNEY
TRANSPORT ACCESS
Public-private partnership liabilities
545,504
1,014,250
GO
FINANCE
SOLUTIONS
DELIVERY
Employee entitlements
4,000
4,000
Borrowing
346,385
356,460
Derivative financial liability
112,432
106,158
SAFETY & ENVIRONMENT
Total non-current liabilities
1,008,421
1,480,968
OFFICIAL
TOTAL LIABILITIES
1,418,178
1,939,046
PEOPLE
CORPORATE SERVICES
NET ASSETS
34,311,589
36,663,829
EQUITY
GOVERNANCE, STAKEHOLDERS
General funds
5,606
5,606
AND COMMUNICATIONS
Retained funds
18,296
16,388
Memorandum account – other fees and charges
11,066
8,425
PARTNERS AND STAKEHOLDERS
Equity derived from the state highway network
34,307,941
36,659,314
Figure 1 – Transport Agency value-chain operating model
Cash flow hedge reserve
(31,320)
(25,904)
TOTAL EQUITY
34,311,589
36,663,829
18 See technical notes on page 31.
NZ TRANSPORT AGENCY SOI AND SPE 2018 LAYOUT CONCEPTS
