Statement of Intent G45

Transcription

1 Statement of Intent G45

2 New Zealand Trade and Enterprise Statement of Intent

3 2 New Zealand Trade and Enterprise Statement of Intent New Zealand Trade and Enterprise Statement of Intent Foreword It is our belief that New Zealand has many global opportunities for growth. A number of global megatrends are bringing international economies closer to New Zealand, including the rising global demand for safe and secure food supply, the emergence of the Asia century and the rapid advance of digital technologies. However, we have a dilemma and it is scale, even more so than distance. With a limited number of large companies New Zealand struggles to get enough depth to take enough risks to convert these opportunities into sustainable economic growth. For this reason, over the last two years NZTE has focused on growing companies internationally, for the benefit of New Zealand. This commitment has been part of a multi-year work programme to lift our performance and deliver better results. There are four strands to this approach, all of which are closely aligned to the Government s Business Growth Agenda: Working with a dedicated number of individual companies who have the capacity and aspiration to grow internationally Focusing on specific groups of customers who are willing and able to work together to increase their internationalisation Delivering to companies the right portfolio of growth services Acting as one with the other public sector economic development agencies. Over the last two years NZTE has focused on growing companies internationally, for the benefit of New Zealand NZTE targets customers that are, in the main, businesses with some experience in exporting. We provide an intense account management model and a customised set of services to around 500 of these customers, and a lighter touch engagement to a further 1500 customers. This engagement is delivered via a recently launched NZTE Customer Way that is designed to deliver consistent performance, tailored to the specific strategy of an individual business. In addition, NZTE continues to offer services to a far broader range of customers through our regional partners, incubators, mentors and web access. Our second focus is to assist New Zealand companies to scale up by collaborating. Here we work with groups of customers who have a competitive advantage, who are able to co-invest and who are willing to work together; so called coalitions of the willing. Around these coalitions we design High Impact Programmes, of which we intend to support around 10 at any one time. Our third focus is on delivering the right portfolio of services to support business growth, ensuring these services are delivered at the right time and in the right place. These services are delivered both domestically and globally, including strategic positioning, design and branding, market discovery and access, the development of in-market business models, research and market intelligence, and so forth. Through these services we assist businesses at all stages of their development, from growing an export business, through to full international operations. Over this year we will also continue to improve our efficacy in capital markets. This includes assisting NZ companies to raise capital, and also to facilitate the attraction to NZ of high quality foreign investors and multinational companies. Our fourth focus is to contribute to an active NZ Inc multi-agency work program. Key initiatives include the support for the establishment of Callaghan Innovation, the creation, promotion and protection of a NZ Story and Brand, the leveraging of the America s Cup in San Francisco in 2013, the development of Maori business, the rebuild of Christchurch, and the partnership to achieve the deliverables outlined in the MFAT lead NZ Inc country strategies. In each of these endeavours the emphasis is on cause driven cooperation to achieve the best international growth for New Zealand.

4 4 New Zealand Trade and Enterprise Statement of Intent New Zealand Trade and Enterprise Statement of Intent Who we are Our purpose is to unleash the international potential of New Zealand businesses, to build the nation s lasting prosperity. Our focus will be to support our customers businesses to grow bigger, better and faster. To deliver the above we need excellent people with excellent tools. To achieve this we have two parallel programmes of internal reform. The first is a human resource programme designed to achieve agile, astute and adventurous people working as one team to add value to the customer. The second is an information technology strategy designed to deliver a fast, intuitive and secure digital platform, which provides best in class knowledge management. In November 2013 we will be refreshing our overall strategy, and will continue to implement change using a 90 day improvement methodology. The overall intent will remain to add more value to both our internationalising businesses, and to New Zealand as a whole. Andrew Ferrier Chair, NZTE Board Peter Townsend NZTE Board The overall intent will remain to add more value to both our internationalising businesses, and to New Zealand as a whole. New Zealand Trade and Enterprise (NZTE) is a Crown Agency established under the New Zealand Trade and Enterprise Act We are governed and informed by a Board that is jointly responsible to the Minister for Economic Development and the Minister of Trade, while the Ministry of Business, Innovation and Employment (MBIE) and the Ministry of Foreign Affairs and Trade (MFAT) jointly undertake the monitoring role of NZTE. Our Board comprises individuals with significant international business experience and knowledge. NZTE employs 522 full time equivalent (FTE) employees (as at 31 March 2013) in New Zealand and internationally. About 43 percent of our people are located overseas, and most are locally recruited. We are a catalyst for our customers to achieve international success. We do this by connecting government, New Zealand businesses and key players in international markets, by providing access to international knowledge, advice and expertise, growing capability, and developing industry groupings and networks. Our customers New Zealand businesses and their international customers, value the government imprimatur (reputation/mandate). This is especially true when they deal in international markets, or on major transactions that have a heavy foreign government involvement. Our ability to deliver value to business and government resides in our organisation s unique characteristics: We have the Government s imprimatur which can be used to open doors, provide credibility and a New Zealand Government voice for New Zealand businesses engaging in international markets We can reduce transaction costs and replicate the benefits of a large firm to help New Zealand businesses overcome disadvantages of scale and distance We operate for the benefit of New Zealand so can offer access to services to a broad range of businesses We are able to leverage the goodwill of the business community for the benefit of NZ Inc. When we invest, we test that our contribution delivers additional net benefit. We are a catalyst for our customers to achieve international success. We do this by connecting government, New Zealand businesses and key players in international markets. Peter Chrisp Chief Executive, NZTE

5 6 New Zealand Trade and Enterprise Statement of Intent New Zealand Trade and Enterprise Statement of Intent The current business environment Despite continuing international financial uncertainty, the global economic environment continues to offer opportunities for New Zealand s current and future exporters. The Christchurch rebuilding process, the expected recovery in some of our traditional developed markets along with the solid growth occurring in Asia and other developing economies provide opportunities for stronger economic growth in New Zealand. Even with the New Zealand dollar reaching historic highs and the impact from the 2013 drought, international mega-trends are on New Zealand s side. Asia, Africa, the Middle East and Latin America all continue their economic renaissance and a new burgeoning middle class are looking for the safe food and niche products we can supply. There is also significant potential in our traditional markets for New Zealand businesses that focus on niche and added-value opportunities, or can leverage our brand and integrity. Our ability to take advantage of these international opportunities, and the resilience to meet the continuing economic challenges is critical. New Zealand s place in the global economy New Zealand remains in the bottom half of the OECD rankings in terms of GDP per capita and labour productivity growth. Our exports of goods and services currently represent around 30% of GDP. This is around the OECD average but well below the 40 50% of GDP for similar-sized OECD countries. This is not sustainable for us in the long term in a global market, especially if we wish to attain the level of wealth we aspire to as a nation. The current realities of a strong currency and rapidly evolving global manufacturing sector present both challenges and opportunities. Whilst manufactured food exports exhibit strong growth, the story is less consistent for the non-food sector, with some of the traditional segments struggling to compete internationally. However, new opportunities are emerging in the high-value information technology and services sectors and in the commercialisation of public service knowledge and expertise. Many companies also see the strong currency as a motivator to improve their competitiveness and for some an opportunity to invest in new plant and technology to lift productivity. Companies are looking for new opportunities to extract greater value out of our commodity base, increase international competitiveness through innovation, and integrate into and move up global value chains, often in niche or new areas such as commercial services. Our fundamental challenge remains in that we are a very small country with a domestic economy that lacks scale, and we are also a long way from major markets. We also have relatively few businesses that are of a scale to engage internationally. These challenges are unique compared to other developed countries, however, our smallness also means we can adapt quickly and respond to changes in market conditions and customer needs. To be successful New Zealand businesses need to be internationally competitive and a vital component of this is establishing international connections. These connections support knowledge flows from overseas, help foster business relationships, provide markets for exports, and ensure integration into global value chains. The Government s Business Growth Agenda The Government s key agenda is to build a stronger economy by creating conditions for businesses to be more productive and internationally competitive. NZTE s role is to support export led growth and business internationalisation through actioning the Government s goals and priorities. In order to be competitive, businesses depend on six key things: 1. Ideas and innovation to create business opportunities 2. Money to build the business 3. Access to raw materials and resources 4. Skilled people working in safe workplaces 5. Customers who want to buy the products 6. Infrastructure such as electricity, broadband and transport that the business depends on.

6 8 New Zealand Trade and Enterprise Statement of Intent New Zealand Trade and Enterprise Statement of Intent The Business Growth Agenda NZTE s Strategic Framework Export Markets Business Growth Agenda Infrastructure Innovation Business Growth Agenda Growing companies internationally Natural Resources Skilled and Safe Workplaces Capital Markets Focus Foundation customers Right services at right time, in right place Multi-customer, high impact projects Making it easier for firms to access the six critical ingredients needed to help drive growth and productivity is the focus of the Government s Business Growth Agenda. Having access to the critical inputs they need allows businesses to build on their capabilities, and create and capture more value from what they do well. NZTE participates in the Innovation and Skilled & Safe Workplaces areas of the BGA, while Export Markets and Capital Markets fall specifically within our brief. Why Export Markets Matter It is only through exporting that New Zealand, with a small domestic market, can deliver the growth and productivity required to enhance wealth and create more and higher paying jobs. When businesses are able to access a larger market they can benefit from economies of scale, and specialise in areas they have an advantage in. This helps stimulate productivity improvements in our producers, and lifts growth. Analysis by the OECD suggests that a 10 percentage point increase in trade openness the share of exports plus imports to GDP lifts GDP per capita by 4%. New Zealand s trade relationships are critical to growing the economy, so we are finalising the development of the NZ Inc country strategies that target opportunities in key markets. It is important to leverage New Zealand s reputation in other countries and to help open doors for companies that may be too small to access market opportunities on their own. Ensuring that New Zealand is seen by overseas customers and investors as an innovative economy, with dynamic businesses, enhances our international competitiveness. Access to capital Businesses need capital to invest, expand and export and an essential element of the business environment is effective capital markets. Lack of capital is a significant barrier for new, high-tech firms that often face high upfront costs. In a global environment wary of debt, capital becomes even more important. New Zealand s capital markets are small by global standards. Continuing reform of financial services to encourage investment, introduction of the mixedownership model, and encouraging more investment from ordinary New Zealanders will strengthen our capital markets and help high-growth businesses access capital. The Government s message is clear: we need to deliver more to grow exports and investment, for the benefit of all New Zealanders. Our people Digital knowledge platform Delivered with NZ Inc. (Country + Regional plans, Telling NZ Story, Collaborative work plans)

7 10 New Zealand Trade and Enterprise Statement of Intent New Zealand Trade and Enterprise Statement of Intent What we do NZTE helps businesses address challenges they face in their international journey from clarifying purpose to identifying the right business model, from understanding customer needs to improving operational efficiency, and from brand and design to entering new markets. NZTE s strategic framework Our strategic framework was designed to support the BGA, and we are committed to growing companies internationally. As outlined in the foreword, there are four strands to the approach we are taking to do this. These consist of the three main components of our strategy (as per the diagram on previous page), along with our NZ Inc multi-agency work program, all underpinned by our people and technology. To further deliver on our strategy NZTE developed a three-year performance improvement work programme, which was based around 10 Challenges. 2011/12 marked the first year of our delivery of this programme, which covers both internally and externally focused changes to enable us to better deliver on our purpose of unleashing the international potential of New Zealand businesses. In September 2012 we reviewed and refreshed the 10 challenges and consolidated them into a new framework of six challenges that are driving our work programme for the coming year. The focus areas for these six challenges in 2013/14 are: 1. Delivering a high growth customer portfolio 2. Developing services designed for customer needs 3. Creating additional value by supporting collaboration amongst customers 4. Realising the potential of our people 5. Putting our knowledge to work for the customer 6. Delivering to customers as NZ Inc. Our programmes and services are designed to support businesses to grow and succeed internationally and are focused primarily on refining strategy, improving performance, building global networks, and in-market support for business development. While individual services are focused on specific business needs, they are designed to complement each other and are delivered as part of an integrated plan to support a company s international journey. We align services with different stages of a business lifecycle from starting and growing a business, through to exporting and operating internationally. Some services are provided directly by NZTE personnel in New Zealand and around the world, while others are provided through external organisations, such as Regional Business Partners and expert advisors funded by NZTE. The international business environment is constantly changing, and we aim to deliver credible and relevant support that addresses current business needs at the right time and at the right scale for each business. Our services are always evolving to make sure they are relevant and in line with what businesses need. In the years ahead we will continue to refocus and refine our services to ensure they deliver to a defined business need and add measurable value. We will also ensure our services are effectively contributing to the Government s Better Public Services by working with other agencies to implement improvements to the way Government interacts with New Zealand Businesses. Our strategic framework was designed to support the BGA, and we are committed to growing companies internationally. NZTE Customer Way business model Discover Plan Perform Every customer is unique Discover customer needs Customised plan Deliver services Better by Strategy Better by Design Better by Lean Market & supply chain Leadership Finance & capital Strategy & purpose (Boot Camp or Light Touch) Engagement plan International services Pathways Beachheads Procurement Market research Global Leadership Better by Capital International Growth Fund Other NZ inc. services

8 12 New Zealand Trade and Enterprise Statement of Intent New Zealand Trade and Enterprise Statement of Intent Our Services Suite A toolkit of repeatable offers that support customers to grow bigger, better and faster, internationally Better Business Business Basics Regional Business Partners Mentoring Incubator Support Programme Self-serve resources ( Business Development & Better by Design Better by Lean Better by Strategy Leadership Global Executive Leadership Programme International Business Awards Capital Solutions Better by Capital Domestic When looking at the level and type of assistance we can offer a business we consider their level of global experience and their potential to contribute to New Zealand s long-term economic growth, as well as whether or not NZTE and NZ Inc can add value at the current time. We work to promote and unlock opportunities in global markets for our customers by connecting New Zealand businesses (through our network of 37 international offices) with a global network of contacts, information and expertise. As part of NZTE s global account management services, our international and New Zealand teams work together, to provide customised support to businesses at all stages of their internationalisation journey. We develop and distribute market research and market intelligence reports, advise businesses on market entry and expansion, identify their development needs, provide assistance to access capital, help them find partners in market and support them with on-the-ground services. Market Growth Global Reach Market Entry Go to market (under development) Path to Market Global Networks Beachheads Industry Capability Network Project Link Market Insights & Support International services offer Market research Trade missions Country business training Financing International Growth Fund Internationalisation We also organise the New Zealand presence at selected trade shows, as well as targeted workshops, forums, trade missions and market visits by individual businesses and industry groups. NZTE delivers (or contracts for delivery) a range of services to support New Zealand businesses to develop capability, grow, prosper, and contribute to the country s economy at all stages on their path to internationalisation. NZTE s range of services fall into two broad service families: Better Business services designed to develop and improve business capability for international growth (delivered predominantly in New Zealand) Global Reach services to support business within international markets (delivered predominantly in market). NZTE also works to raise the profile of New Zealand as an investment destination and attract quality Foreign Direct Investment (FDI) into New Zealand. Better Business These services focus on growing capability so New Zealand businesses are ready to take on the world. Business basics Regional Partner Network The Regional Business Partners programme makes it easier for businesses to access early stage support that may be available. The national network of 14 Regional Business Partners assist businesses to identify their commercial needs. Businesses are then directed to relevant information, training courses, and other appropriate public and private services. Through joint support from NZTE, the Regional Business Partners offer NZTE Capability Development Vouchers for qualifying businesses to use as partial payment towards the cost of training and business development services. Our aim is to assist business owners and managers to understand what steps they should take to grow their business, and where to find information and assistance to do so. Mentoring Mentors can help businesses step back and look at the big picture, identifying strengths, weaknesses, opportunities and threats that may have been overlooked. They can also serve as a sounding board for ideas and offer advice to help guide the business in the right direction. Providing connections to key business people and customers is another role that a mentor will serve. A successful, growing business brings new challenges such as hiring new personnel, raising new capital and entering new markets. A mentor can offer helpful advice, caution against potential pitfalls and instill confidence in a business s plans. A mentor can help set goals and milestones as well as make the business accountable for delivering on them. Incubator Support Programme NZTE provides funding to help business incubators work with entrepreneurs looking to turn ideas into businesses with global potential. The programme has been running since 2001 with over 300 companies graduating from an incubator over that time. Entrepreneurs that are accepted into an incubator get a tailored programme of support that can include technology and market validation, business planning and development, capability development and investment advice Self-serve resources Our website, is the starting point for general information about how to export. Our range of online business resources covers all elements of exporting and doing business internationally. This includes starting a business, developing a business presence online and beginning to export. We also produce a fortnightly newsletter Export News that customers can subscribe to for the latest market information from our international offices. Business development and performance Better by Design Better by Design helps businesses use design to become more innovative, efficient and internationally competitive. Through our Design Integration Programme and experiential learning events we help New Zealand businesses create value through design. Presented by world-leading design thinkers and practitioners from within the industry, our experiential learning events help to educate and inform participating businesses. Over recent years the Design Integration Programme has evolved from a learning by telling model, where much of the design activities were performed by external consultants, to a learning by doing model where Design Coaches are actively encouraging businesses to integrate design thinking principles and tools into their business. The recent changes to the programme have been specifically designed to build longer lasting capability into the business, with the ultimate goal of creating a more globally competitive, sustainable and viable long term business model.

9 14 New Zealand Trade and Enterprise Statement of Intent New Zealand Trade and Enterprise Statement of Intent Better by Lean The Better by Lean service assists businesses to improve performance, eliminate inefficient processes and activities, and increase customer satisfaction. It emphasises the need to build a culture of continuous improvement for Lean to succeed over the long term. Better by Lean is based on the extremely successful Toyota Production System, which now has proven application within all areas of business operation, and across all business sectors from manufacturing to all types of services. As of 30 June 2013, Better by Lean will be administered by Callaghan Innovation. Callaghan Innovation and NZTE will work together to provide an integrated suiteof-services to support businesses, from innovation to internationalisation. Better by Strategy Better by Strategy is a two-to-three day series of workshops to provide the thinking, processes and tools that can create greater value for businesses. The first one-day workshop is focused on purpose. Here, businesses clarify their purpose and value-creation model. As part of the day businesses will identify their top 10 challenges and these become prioritised objectives that help create a business s future. The next session is a one to two-day workshop on practices. This helps businesses to build on the value creation work from the purpose workshop and implement peak performance practices across all aspects of the business. Businesses will identify their strategies, practices and co-create an action plan to achieve the challenges identified in the purpose workshop. Leadership Global Executive Leadership Programme GELP GELP offers an experiential learning opportunity for CEOs, directors and senior executives of businesses with significant turnover and high growth in global markets. It helps to develop New Zealand businesses on a path of sustained international growth by enhancing the leadership ambition, mindset and capability of the country s foremost leaders. Through GELP businesses will assess and develop a global mindset to enhance management and leadership while increasing their awareness and skills to support international growth. GELP provides access to worldleading experts to help build business capability and discover new innovative practices. It also provides businesses with the opportunity to share international management and leadership practices and skills within New Zealand, to enhance their overall capability. International Business Awards This premium business awards programme has been purposely designed to reflect the new approaches that New Zealand businesses are taking to achieve international success. The awards are run by NZTE, with the support of strategic partner ANZ. By entering the programme there is the opportunity to benchmark businesses against others and receive valuable advice and guidance. It also provides a chance to take an in-depth look at each business and identify areas to strengthen their capability and improve effectiveness. The programme is designed to be rigorous, but all entrants get pragmatic and actionable feedback. There are three stages to the awards process, with only the top scoring businesses moving on to the next stage. Capital solutions Better by Capital The Better by Capital Service is a new NZTE service for 2013/14, which is designed to help New Zealand companies better understand the capital required to fund their growth. It also assists them with how to plan, prepare and access that capital from the right source, at the right time. Global Reach These services offer knowledge and support to New Zealand businesses in market. Market entry Go to Market Go to Market is a suite of tools to assist our customers make better commercial decisions when entering new international markets. Designed from a customer s perspective, and focused on understanding the end consumer, these tools are for use by our customerfacing teams to help businesses with new market entry or who wish to change their existing operations in a market. The end goal is to provoke new thinking and challenge our customer s assumptions about the market, and work together to help them plan for export success. Path to Market Path to Market is a business capability building programme that bundles a range of NZTE services with expertise from the private sector to support capable, proven companies to fast-track their entry into new markets. NZTE runs three to four programmes each year for selected industry sectors with each programme including expertise from the private sector to help businesses develop a smart, robust export strategy for a new market. The international business environment is constantly changing, and we aim to deliver credible and relevant support that addresses current business needs at the right time and at the right scale for each business. Global networks Beachheads Beachheads connects participating companies to a network of private sector advisors in New Zealand and around the world who can act as mentors and provide insights into the realities of growing internationally successful businesses. Our advisors have been there and done that and are a mix of expatriate New Zealanders and local business people. Advisors provide valuable perspective and their insights help our customers shape the direction of their business. Industry Capability Network ICN ICN develops early stage relationships with large projects and supply chains to create interest in internationally competitive New Zealand suppliers and open the door for New Zealand businesses. Through these relationships we provide early warning to businesses of upcoming projects and make valuable early stage introductions. At the same time we help businesses build capability to participate in major projects and international supply chains. ICN also offers a free online service, called Gateway. Visitors to our website at can register and search for projects or business opportunities across Australasia. Alerts are also sent to registered suppliers if ICN has new information on major work packages. ICN also hosts briefing sessions and industry days between buyers and suppliers to bring everyone together and provide an opportunity for networking. Project Link ProjectLink is an online subscription service that can connect businesses to prequalified opportunities in Australia. The service links businesses with the key decision makers at an early stage in the project development and tendering process. The service covers a wide range of sectors that include: construction, shipbuilding and marine, production and processing, infrastructure, utilities, mining, oil and gas.

10 16 New Zealand Trade and Enterprise Statement of Intent New Zealand Trade and Enterprise Statement of Intent Market insights and support NZTE undertakes a range of market research for customers including sector, country and market overviews, trends and forecasts to identify opportunities and help reduce the risk and costs associated with internationalisation. International services offer Our international suite of services helps our customers to unleash their international potential through bespoke services, networks and leverage of government imprimatur. Our international services aim to support a company s international journey and include bespoke services, private sector advice and networks, and leverage of government imprimatur. Through our network of 37 international offices we can provide in-market support in five key areas: market information and insight, expert advice, tactical support, new business development, and international capital support. Market research NZTE publishes an extensive range of freely available facts, data and market intelligence on our website. For more detailed, or customised research, we work with businesses to identify research needs and put together a tailor made report specific to their target market. We can provide initial market insights through our New Zealand desk-based research services, while our international teams can provide a combination of deskbased and in-market insights. Trade missions Trade Missions are coordinated visits by a group of business executives that usually follow a structured programme of business briefings, company visits, networking events and one-on-one meetings. The organisation by NZTE provides an official profile for New Zealand businesses who want to build in-market relationships to either develop business opportunities or open doors for future growth. Country business training Country business training aims to help New Zealand businesses and business people prepare for doing business in specific markets, and succeed. The training includes understanding the local market and how the government and business environment operates, along with navigating language barriers, cultural differences and regional variations. It also covers building and maintaining business relationships and how to work with the local legal, financial and management structures. We have undertaken a comprehensive programme covering business training in China and are planning at least one other market by Financing International Growth Fund IGF The IGF helps businesses accelerate their growth by providing co-funding for projects that bring economic benefit both to the business and New Zealand as a whole. In response to customer feedback NZTE undertook a review of the IGF to address the need for a simpler process, and timelier decision-making. As a result of this review NZTE is implementing the following changes to the IGF: More timely and more targeted business cases, co-developed by customers with their NZTE customer managers Improved turnaround times (incorporating a simplified claim process) Added assurance on progress is provided by the Board sub-committee monitoring higher risk IGF projects, and an IGF measurement dashboard. The result of these changes is a less bureaucratic process for customers, improvements in overall processing time, and better management of customer expectations through the application, business case development and approval process. We have also introduced a new performance measure to calculate the realised Direct Economic Impact from approved IGF grants. Attracting Foreign Direct Investment NZTE works to attract quality Foreign Direct Investment (FDI) into New Zealand and facilitate access to International investment funds. We seek to attract large-scale, high-impact foreign investment into New Zealand, namely importing the new exporters. We do this by promoting New Zealand to international investors and raising awareness of the investment opportunities available. We can provide information and support to potential investors and then facilitate the investments into New Zealand. Introductions to economic development agencies, service providers and other companies are provided along with introductions to potential joint venture partners. We can assist in navigating central and local government regulatory requirements in New Zealand and provide access to the following programmes to aid quality foreign investment: Strategic Investment Fund (SIF) which provides assistance for potential projects with significant benefits to New Zealand and assess the feasibility of establishing significant business in New Zealand Visiting Investors Programme (VIP) which is a managed visit programme for company decision makers and their advisors considering New Zealand as a location for establishing all or part of their value chains Attracting and facilitating strategic investment into New Zealand through both Greenfield projects and Expansion and Development projects is a key focus of our work. We can provide information and support to potential investors and then facilitate the investments into New Zealand. Introductions to economic development agencies, service providers and other companies are provided along with introductions to potential joint venture partners.

11 18 New Zealand Trade and Enterprise Statement of Intent New Zealand Trade and Enterprise Statement of Intent NZTE Customer focus Our customers Export goods and services earnings year to June 2012* $39 billion $6 billion $4 billion * Figures are rounded to the nearest billion. Services exports of travel, transportation and government services are excluded. Source: Statistics New Zealand (generalised) NZTE focuses on working with New Zealand businesses that are committed to significant international growth. We have an active customer portfolio of around 2,000 businesses with a specific intense focus on a group of 500 high-growth potential companies that are selected according to the customers current and future potential, and the impact they have on the wider economy. We work intensively with these 500 businesses with the long-term goal to double their growth. Most of these 500 companies are in the $3m $300m revenue range and already have some experience and scale in exporting. We believe this is where we will deliver the best return for New Zealand. We also support provision of services to our other 1,500 customers, through a range of delivery mechanisms including a NZTE light touch business service. 240 companies earning >$25m 560 companies earning $5 $25m 13,000 companies earning <$5m Focus NZTE customers Number of New Zealand exporters In addition to our 2,000 core customers, NZTE also funds business capability building services to a wider range of New Zealand businesses through incubators and our Regional Partner Network. We are continually refining our customer engagement model and processes to improve the value we deliver to our customers and achieve greater effectiveness and efficiency. We are also looking at ways to actively identify newer businesses with the potential and desire to grow internationally. Collaboration, NZ Inc and our partner agencies NZTE works with partners across New Zealand s economic development landscape. It is our firm belief that only a joined up effort will deliver real impact over time and we all strongly believe that we work for a cause, not an institution. Collaboration with our NZ Inc partners, both within government and in the business community, is central to NZTE s purpose and beliefs. Internationally, NZ Inc (which includes NZTE, MFAT, Immigration New Zealand, Tourism New Zealand and the private sector) share a coordinated approach to promote New Zealand in international markets, and support the international growth of New Zealand businesses. There is currently a gap between how international audiences understand New Zealand and the ideal positioning required to ensure that the world wants to buy New Zealand. We are actively working with other government agencies and business to develop and promote the New Zealand story that supports our businesses internationally. There is currently a gap between how international audiences understand New Zealand and the ideal positioning required to ensure that the world wants to buy New Zealand. We are actively working with other government agencies and business to develop and promote the New Zealand story that supports our businesses internationally. NZTE is working with MFAT, MBIE, MPI and other government agencies to develop and implement a number of NZ Inc country and regional strategies for New Zealand s key markets. We also work closely with MBIE and Callaghan Innovation to enhance the innovation ecosystem, and to support and assist companies progress from commercialisation to internationalisation. We are continuing to align our investment strategies with our NZ Inc partners to effectively deliver on the Government s priorities. We will also work with customers who are seeking capital to support their growth and internationalisation, and attract investors into new projects that meet the Government s objectives. MBIE, MPI, MFAT, Education NZ, Callaghan Innovation and the NZ Export Credit Office are the main agencies we work the most closely with. We work together to identify the key areas of collaboration with each of these agencies and agree joint work programmes. Alongside this, we will continue building a collaborative operating model with Auckland Tourism, Events and Economic Development to support Auckland s growth. We will also continue to work with the Canterbury Earthquake Recovery Authority and other Canterbury based agencies to assist Christchurch with its economic recovery. NZTE also works with other regional economic development agencies, predominantly through the Regional Partner Network, to ensure that support is aligned for New Zealand business in all regions. Achieving a more competitive and productive economy for New Zealanders requires ongoing and extensive inter-agency cooperation.

12 20 New Zealand Trade and Enterprise Statement of Intent New Zealand Trade and Enterprise Statement of Intent What we intend to achieve Our outcomes framework Our outcomes framework shows how our work contributes to the Government s key priority to build a more productive and competitive economy. We can see how our work increases business internationalisation for our customers by identifying the impacts we are trying to achieve and what priorities will best support us to do this. The term internationalisation is broader than just exports and refers to a range of activities: exporting goods and services, investing directly in a foreign firm, and sourcing part of a product s value chain from another country. Or put more simply Exporting is about shipping container loads of goods from New Zealand, while internationalising is about building international businesses with a connection to New Zealand. The diagram below illustrates the link between our output classes and the impacts that result from our interventions. NZTE s Outcomes framework Government key priority Build a more productive and competitive economy Our outcome Increased business internationalisation for our customers Our impacts Enhanced business management capability Increased international revenue for NZTE customers How we will demonstrate our effectiveness Percentage of businesses that have changed or intend to make changes to improve their business as a result of their interaction with a Regional Partner Annual growth in export revenue for NZTE s intensively account managed customers Total value of export deals effected with NZTE involvement Case studies completed that demonstrate positive net economic impact to New Zealand NZTE output classes Services to develop business capability International business growth services Services to support sector development and special events

13 22 New Zealand Trade and Enterprise Statement of Intent New Zealand Trade and Enterprise Statement of Intent Measuring and evaluating our performance We use measures to understand the impact of our interventions, make key operational decisions and ensure improved efficiency and effectiveness. Measuring our efforts is challenging, as it is for any economic development agency, as attribution at the economic improvement level is difficult to quantify. We have therefore placed the majority of our focus on measuring the effectiveness of NZTE activities that we have the most direct control over. We will know we are making progress towards the Government s key priority to build a more productive and competitive economy, and progress towards our outcome to increase business internationalisation for our customers, when our intensively managed key account customers grow their international revenue. We will also know that we have been successful in delivering on the Government s economic goals when there is a positive economic impact to New Zealand resulting from our activities. The current full suite of our output and impact (effectiveness) measures is set out in Section 7. This suite of measures has been selected as it represents the majority of NZTE s spend and reflects the most important aspects of our business and performance. We have endeavoured to retain the same set of measures over the last few years in order to monitor our performance over time. In 2013/14 we are introducing two measures in relation to the value of capital derived for NZTE managed customers, and the estimated value of the direct economic impact from committed investment projects. These two measures will be reporting baseline results for 2013/14. In conjunction with MBIE, NZTE participates in rolling evaluations of our programmes and services. Recommendations from the evaluations are implemented by the responsible business unit, and have been used to: Managing organisational health and capability NZTE is a global employer with 522 FTE employees, across 37 international and 10 domestic locations, as at 31 March We are also actively recruiting for 31 positions. We continually monitor and manage employee numbers to ensure that NZTE remains efficient and productive. Cease programmes (e.g. clusters, enterprise networks) Refine and expand programmes based on learning in the field (e.g. Beachheads) Improve both effectiveness and efficiency through practical changes to programme design and delivery. Internally our Board and leadership team monitor organisational performance through a monthly dashboard. Dashboard information is reported through a business intelligence portal and tracks 12 key performance indicators. Team-level dashboards have also been developed to provide operational performance information to support and improve decision-making capabilities. To ensure a continuing focus on efficiency and costeffectiveness, NZTE introduced the following new value for money measure in the 2012/13 year and will continue to measure this in coming years: measure standard 2013/14 NZTE performance is in the top 50% performers for our cohort for each metric in the annual Administrative & Support Services Benchmarking (BASS) report For 85% of the metrics NZTE is in the top 50% NZTE s ability to assist our customers depends on us having people with the right skills, abilities and commitment, supported by the right structures, policies and systems. The description of our character (as depicted below) is designed as an internal motivation and guide for how employees should behave. The one-team emphasis is necessary for delivering a coherent and aligned set of services both in New Zealand and offshore. The other characters are designed as a circuit breaker to increase our level of speed, risk taking and commercial focus. We aspire to be As outlined in Section 2, our current strategic focus is on delivering the third year of a three-year performance improvement work programme, which is structured around six challenges. Our internal improvements over the next three years are captured in challenges 4 and 5 (Realising the potential of our people, and Putting our knowledge to work) that address the findings of the Improvement Framework review, which was conducted in

14 24 New Zealand Trade and Enterprise Statement of Intent New Zealand Trade and Enterprise Statement of Intent Consultation and reporting to Ministers As a Crown Agency our agenda and direction is set by the Government, therefore we consult and report to Ministers regularly. The performance of our people is at the heart of NZTE s ability to contribute effectively to Government s economic priorities. We want to actively grow leadership management and management skills, and improve business acumen and capability. We want to build clear career paths and talent management opportunities that include our customers and NZ Inc partners, and ensure that we have the right people in the right jobs. During 2013/14 we will also be implementing our new People and Capability framework, which will ensure we develop, attract and reward great people. We re also focused on delivering an environment that promotes and supports the growth and sharing of knowledge across our organisation, partners and customers. Unified communications will support increased connections between individuals and teams. We will continue in 2013/14 to improve and expand delivery channels such as web, intranet, mobile devices, and social media to ensure NZTE people, our customers and our partners are able to securely access NZTE services via channels that work for them and the environment in which they are operating. During 2013/14 we will also be implementing our new People and Capability framework, which will ensure we develop, attract and reward great people. Good employer NZTE is required under the Crown Entities Act 2004 to be a good employer. NZTE meets its obligations by having policies that include: Equal employment opportunities The NZTE standards of integrity and conduct Recruitment and selection Remuneration Flexible working arrangements The NZTE mentoring programme Protected disclosures Anti-harassment safeguards Health and safety. NZTE s health and safety initiatives include access to the Employee Assistance Support programme, workstation assessments and planning for pandemics. We place a strong emphasis on ensuring that we maintain a diverse workplace and inclusive culture, and are committed to equality. We make appointments based on merit and ensure fairness in employment for all people and groups of people. All managers and employees have a responsibility to promote a work culture in which all personnel, whatever their gender, ethnic or social background, sexual orientation or role, are valued, and treated equitably and with respect. NZTE also uses a number of surveys and measures, tracked over time, to monitor organisational health and capability including: Employee engagement surveys Employee turnover and sick leave Employee distribution (NZ-based versus overseas-based) Ratio of client-facing versus back-office employees. Our relationship with Government is dynamic NZTE provides a point of intersection between Government and business and international markets. Our aim is to achieve economic growth for New Zealand businesses The Board and/or the Chief Executive provide the Minister for Economic Development and the Minister of Trade with regular reports. Three quarterly reports will be provided in 2013/14 within 30 days following the end of each quarter (45 days for the December report). These reports will cover: Ministers and relevant government agencies are consulted before NZTE takes a decision in regards to: in a challenging economic environment. Given this, our communications with Ministers must be relevant and provide collaborative and innovative solutions. Progress against the Statement of Intent and NZTE Dashboard Risks and issues around performance and organisational capability (including relationship management) Financial management Other matters as agreed with the Ministers Any material change in the capability and functionality of NZTE s network (in New Zealand and internationally) Any activities that are potentially outside of the scope of appropriations made by Parliament or relevant legislation applying to NZTE Any significant organisational decisions that will give rise to Parliamentary interest or public debate The Board reports to joint Ministers and the New Zealand public annually on full-year progress against the Statement of Intent. This report also includes Board updates in regards to fees and allowances paid, and attendance levels.