Managing in a changeable operating environment

Te Puni Kōkiri’s success is premised on the expectations of, and having strong relationships with, both government and Māori. We focus on strategic and purposeful relationships with Māori communities, to achieve mutual goals of being responsive to local needs while also aligning with government priorities.

Over recent times these expectations have changed as Māori move from pre to post Treaty of Waitangi settlement phases. Currently, there is an emerging emphasis on the devolution of government funded services to Māori delivery mechanisms. On a day-to-day basis, our regional office network provides local level intelligence on emerging issues and expectations among Māori communities, and Ministers are regularly apprised of this information.

We continually strive for excellence, through internal policies and processes that provide our stakeholders with confidence of an efficient and effective agency. Additionally, our relationship with our stakeholders is very important to Te Puni Kōkiri, best reflected in the breadth of our investments and work at the local level.

We have responded well to Government priorities, within an environment of fiscal constraint. On-going prioritisation, together with undertaking a Priority Alignment Review, to address functional and structural issues, has ensured that Te Puni Kōkiri is able to meet agreed government priorities.

Specific measures are underway and will continue across the next two years in order to manage under continued fiscal constraint. These include:

• The continuation of the Priority Alignment Review, focused on ensuring greater efficiency and resource alignment of Te Puni Kōkiri’s regional network to the Ministry’s programme and Whānau Ora implementation responsibilities, and its wider policy work programme; and on improving the Ministry’s contract management capabilities and streamlining its contract management processes. This work is expected to provide the basis for the on-going management of resource constraints;
• A programme of work to develop and analyse measures of effectiveness and efficiency across Te Puni Kōkiri, incorporating Treasury led Better Administration and Support Services programme (BASS) benchmarking and the Review of Expenditure on Policy Advice;
• Managing operating expenditure through a programme of targeted expenditure reviews and active participation in collaborative procurement arrangements offered across the public sector;
• Rationalisation of support service functions through the active consideration of business process improvements, greater use of technology, outsourcing and opportunities for cross-agency collaboration; and
• On-going prioritisation of resource, including a reduction or termination of some work output in order to achieve an agreed and rationalised work programme.
• In addition, Te Puni Kōkiri intends to keep aware of the changeable operating environment throughout the period of this Statement of Intent, by:
• Regularly reviewing its risk exposures and dealing with new consequential risks as they arise;
• Ensuring responsiveness to key stakeholders such as Ministers, state sector agencies, whānau, hapü, iwi, and Māori organisations; and
• Addressing business planning throughout the year so that changes to priorities can occur.

Our Risk & Assurance Approach

Te Puni Kōkiri’s risk management strategy is based on the following objectives:

• To embed risk management practices as integral management functions into all aspects of our business to ensure the timely identification and management of risks; and
• To ensure key internal governing bodies are being informed on a regular basis on the effectiveness and responsiveness of risk management activities.

Our risk management framework has recently been revised following an external review of our practices and procedures. The Chief Executive has directed a level of maturity to be achieved within three years and communication and education programme established to ensure that there is effective involvement from line managers in treating risks or escalating information on risk exposures to the appropriate level.

The key strategic risks relevant to this Statement of Intent are:

STRATEGIC RISKS	RISK RESPONSE
Crown-Māori Relationships – ensure we respond to the evolving nature of Crown-Māori relationships, including our ability to have a positive impact on the state sectors effectiveness for Māori	Focused work programme aimed at increasing the State sector’s effectiveness for Māori; Strong regional networks to provide local level intelligence to inform policy advice; and Regular environmental scanning and strategising by the Executive Leadership Team
Fiscal constraints continue to pressure our ability to meet Government priorities within baseline	Continuous re-prioritisation of the work programme; Revised HR Capability Strategy to ensure continued retention and recruitment of high quality staff; Priority Alignment Review activities focusing on efficiency improvements and resource alignment; Increased use of effectiveness & efficiency measures; and Optimising savings across operating expenditure
Implementation of Whānau Ora; (i) coping with the high demand for whānau-centred practice; and (ii) managing across multiple stakeholder groups	Established a Wahanga dedicated to implementation and related social policy advice; Establish strong governance arrangements (both National & Regional); Implementation of a communications/stakeholder management plan; and On-going risk management approach to activities
Public Sector Reforms – ensure we respond to changes and opportunities arising out of the reform programme in a timely manner	Regular environmental scanning and strategising by the Executive Leadership Team; Continuous re-prioritisation of the work programme; and On-going focus on achieving effectiveness & efficiency of internal operations
Economic recovery is slowed diverting resource due to the disproportionate impact of difficult economic conditions on the Māori labour market, and primary sector asset profiles, increasing the demand for both policy and operational intervention from Te Puni Kōkiri.	Regular environmental scanning and strategising by the Executive Leadership Team; and Continuous re-prioritisation of the work programme and investment strategy

Our Internal Audit function is responsible for evaluating and testing the adequacy and effectiveness of Te Puni Kōkiri’s governance, risk management process, system of internal control, and the quality of performance in carrying out assigned responsibilities.

Internal Audit works to a rolling three-year internal audit plan, with progress overseen by an independent Audit and Risk Management Committee. The plan contains a strong mix of both compliance and efficiency / effectiveness elements.

In addition to the Internal Audit function, other assurance mechanisms within Te Puni Kōkiri include: management monitoring and reporting, quality assurance, peer review, evaluations and external audit.

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