Most importantly, we need to measure the preparedness of the force elements of the Navy, Army and Air Force to achieve the directed level of operational capability (DLOC)⁵ for use on operations - Operational Preparedness.
We need to measure our ability to effectively and efficiently manage a large and complex business - Corporate/Organisational Effectiveness.

Secondly, it must measure its performance in achieving its agenda for change through realisation of its Strategic Objectives.

Thirdly, it must measure its performance in impacting on our Main and Intermediate Outcomes, cumulatively, over the longer-term.

These performance measurement requirements are inter-related and allow for the performance management of impacts, outcomes and objectives, cost-effectiveness of interventions and organisational health and capability of the NZDF.

The system used to measure the performance of the NZDF is multi-faceted. The overarching system that the NZDF uses is the Defence Performance Management System (DPMS). The DPMS integrates information from many other sub-systems/components of the Performance Management Framework, including:

Operational Preparedness Reporting System (OPRES),
Personnel Management Systems,
Financial Management Systems,
Project Portfolio Management Systems,
Logistic Management Systems,
Activity, Training and Lessons Learnt Management Systems,
Risk Management Systems (both Operational and Business focus),
Unstructured data inputs from Audit, Evaluation and Assessment Reports.

The key characteristics of the DPMS are:

alignment of NZDF organisational performance and activities with the NZDF strategic and short-term plans;
measurement of the performance of both strategic priorities and operational imperatives;
integration of the reporting requirements of performance management, programme management, risk management and capability management;
sufficiently flexible to adapt to changing business requirements;
provision of a basis to effectively manage the current and future level of organisational change; and
performance measures are valid, reliable, timely and materially complete.

Performance in Achieving Strategic Objectives

The NZDF uses an enterprise Balanced Scorecard Card (BSC) and Strategy Map to communicate strategic intent and to measure performance in achieving its Strategic Objectives, through the implementation of Strategic Initiatives, across the four perspectives; Our Stakeholders, Enabling Processes, Resources, and Learning and Growth. The BSC approach is a comprehensive performance management system; not just a measurement system. Each Strategic Initiative is based on an assumption that it will improve performance in either the short or long-term; essentially to “close the performance gap”. Several measurement principles have been developed to ensure that the NZDF BSC measures will effectively track the success of our strategy.

Performance in Achieving Operational Preparedness

The NZDF Operational Preparedness and Reporting System (OPRES) continues to be the key measurement system for the preparedness of the force elements of the NZDF to undertake operations that the Government may call on it to perform. OPRES involves the measurement of all Force Elements of the Navy, Army and Air Force against the four Key Performance Areas (KMAs) of Preparedness (Readiness, Combat Viability, Deployability and Sustainability)⁶, and, within each of these, looks at the detailed Key Performance Indicators (KPIs) that relate to the KMA (Personnel, Equipment and Training and Sustainability). OPRES also involves a performance rating scale (the “P”-rating scale) and this scale is used internally in the NZDF and externally in forecasting and reporting. The NZDF OPRES provides robust feedback to the NZDF Executive Leadership Team (ELT) and the Minister of Defence on the ability of the NZDF to deliver military capability. The measures involved in OPRES are covered in Part 2 (Details and Expected Performance for Output Expenses) of the Supporting Information to the Estimates of Appropriations for Vote Defence Force⁷.

Performance in Achieving Organisational Effectiveness

The NZDF DPMS allows the measurement of our ability to effectively and efficiently manage a large and complex business. This allows high level visibility of corporate performance (including both effectiveness and efficiency metrics) of the key mega and major business processes that link resource inputs to output achievement and includes both financial and non-financial performance information of organisational health and capability and cost effectiveness measures.

Measurement of Achievement of Defence Main and Intermediate Outcomes

As explained in Section 3, the NZDF Strategic Plan cascades, within Strategic Themes, from Strategic Perspectives, through Strategic Objectives, to Strategic Initiatives. Like Defence Outcomes, the Strategic Perspectives, per se, are too high-level to measure successfully. At the other end of the scale, the Strategic Initiatives are too low-level as they are really annual or short-term priorities. The NZDF Strategic Objectives, on the other hand, are objectives that are set for the mid-to-long term and will not alter, with any significance, from year to year. They, together with the results of OPRES, therefore seem to provide the most appropriate gateway through which the NZDF can measure its overall performance in achieving the longer-term Defence Main and Intermediate Outcomes (the longer-term results required by the Government for the people of NZ).

A Whole of Government⁸ Approach to Defence and Security Outcomes

The achievement of Defence Outcomes under the Whole of Government approach is, generally, reliant on the contributions from a large number of government departments and agencies that have an interest in wider defence and security issues. In order to adequately measure the wider security outcomes, higher-level indicators and impact measures need to encompass input from all relevant sources. The MoD, DPMC, MFAT, NZ Police, NZ Customs Service, Ministry of Fisheries, the Immigration Service, and other departments and agencies involved in the greater “security of New Zealand and its people”, and actual decision-making by the Cabinet⁹, all have a significant part to play in determining the overall results for Government - the Defence (NZ Security) Outcomes. While it will be some time before a robust, truly Whole of Government approach on this can be achieved, the Ministry of Defence, in conjunction with the NZDF, is promoting moves in this direction¹⁰ and a project on this, sponsored by the MoD, is progressing. The NZDF will continue to identify the indicators and impact measures that are applicable to Defence contributions to national security - in its widest sense. The mid-2008 issued “Framework for NZ Inc Operations Offshore Charter” re-emphasise the benefits of maximising opportunities and minimising risks for New Zealand through whole of government approaches for advancing national interests and national identity offshore. NZDF Defence Attachés and Advisers are aware of this and will work closely with their respective Heads of New Zealand Missions to advance this approach.

Information on the collaboration of the NZDF with other government departments and agencies is included at the end of this section.

Notes

⁵See Section 6 for an explanation of the Levels of Capability.

⁶See the definitions of these terms starting on page 64.

⁷See also under Section 6 of this Statement of Intent (the Operational Preparedness Framework).

⁸Whole of Government denotes government departments and public service agencies working across portfolio boundaries to achieve a shared goal (or outcome) and an integrated government response to particular issues or situations. Whole of Government expects the State sector to work like a single, integrated organisation, rather than a collection of seemingly independent service providers. Whole of Government approaches work on the assumption that responses (to problems) will be more effective if we combine the efforts of all relevant agencies into a single coordinated strategy.

⁹For example, a decision by Cabinet to contribute NZDF force elements to various operational missions.

¹⁰In this regard, the Defence Capital Asset Management Practice (DCAMP) Review (completed in late 2006) recommends that a Whole of Government Approach for the security sector of New Zealand should be pursued.

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This page was last reviewed on 30 June 2009, and is current.

Measurement of the NZDF’s Performance