Assessment gives MFAT reason for change

John Allen. Photo / Bay of Plenty Times

A damning assessment of the management culture and systems at the Ministry of Foreign Affairs and Trade is likely to give its relatively new secretary, John Allen, more reason to carry out sweeping change.

The ministry, which is regarded as one of the elite in the public service, was praised for its talented individuals whose diplomatic professionalism was held in high regard overseas.

But the ministry was also bagged in an independent assessment essentially for its resistance to change in a fast-changing world and economy, for its failures to rein in costs, to address poor performance, and for its failure to set strategic direction and priorities about what to do and not do.

It is not likely to be seen by the Government as aimed directly at Mr Allen, the former chief executive of New Zealand Post who was brought in to modernise the ministry just over a year ago.

It is more likely to see it as provide Mr Allen with more ammunition and impetus to move more urgently in changing the ministry.

Mr Allen told reporters yesterday that the level of ambition that the Government had for the ministry was''extremely high."

"And therefore the level of expectation is extremely high."

The MFAT assessment was conducted by former head of Treasury Murray
Horn, former diplomat John Wood, and Debbie Francis.

The review indicated that New Zealand's relationship with the fast growing and converging market economies in the Asia Pacific region would take more resources than traditional partners.

"MFAT will need to develop the capability to successfully engage its key stakeholders in difficult decisions about where New Zealand's offshore effort should be focused and, most importantly, what it will not do," the report said.

The MFAT assessment is one of four released by the State Services Commissioner Iain Rennie in the first of a new process of transparent performance reviews.

The others were of Land Information New Zealand, the Department of Conservation and the Ministry of Maori Development, Te Puni Kokiri (TPK). each of which rated generally better than MFAT.

It follows methodology used to measure the performace of the British state sector.

Along with reviews, the relevant ministries each released action plans in response.

Mr Rennie said that by publishing the reviews and action plans, "the
public, minister and stateservices agencies are provided with a more transparent, systematic view of agency performance."

He said the reviews would not figure in the performance pay of chief
executives but their responses to the reviews would.

The impression is that talented staff perform well despite the system.

Its [competitiveness] creates a culture that is relatively closed, individualistic, hierarchical and risk averse.

Incentives to address poor performance are weak.

Stakeholders need to be assured that the ministry is motivated by its mission rather than its own professional and organisational desires.

* Source: Formal review of the Ministry of Foreign Affairs and Trade (MFAT), commissioned by the State Services Commission, the Treasury and the Department of Prime Minister and Cabinet.