NZDF

Measurement of the NZDF’s Performance

The NZDF needs to measure its performance across three layers.

Firstly, it must measure the performance of its mission delivery across the following broad dimensions:

  • 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 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 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 four areas of Preparedness (Readiness, Combat Viability, Deployability and Sustainability).6 Within each of these elements, measures are applied to, predominately, Personnel, Equipment and Training). OPRES also involves a performance rating scale (the ‘P’-rating scale) and this scale is used 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 Defence Performance Management System 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

The NZDF Main and Intermediate Outcomes are currently not linked to a formal set of measures. However, as stated at Section 1, a MoD-sponsored study to develop a set of measurable New Zealand Security Outcomes (drawing on the work of the Defence Review) to which the NZDF will contribute, will be developed. Notwithstanding, the measures surrounding the current NZDF Strategic Objectives, coupled with the aggregated results of OPRES, provide a reasonably robust, yet informal, measure as to the health of the NZDF and an indication as to progress in achieving its outcomes.

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 outcomes. In concert with the MoD-sponsored study mentioned in the preceding paragraph, the NZDF will continue to identify the indicators and impact measures that are applicable to Defence contributions to national security - in its widest sense.

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.

 

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This page was last reviewed on 27 June 2010, and is current.