The Navy’s Vision is · PDF fileoverview (called an organisational profile), which...

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The Navy’s Vision is ‘to be the best small-nation Navy

in the world’. We will be that Navy when we are able toconsistently demonstrate the following characteristics:

● We will be operationally excellent because ourships and people are able to deliver versatile, responsiveand effective maritime military capability across thespectrum of operations where and when it is required.

● Our People will be resilient, motivated, wanting andable to contribute to the Vision through what they know,what they do, and knowing why they do it.

● We will be organisationally excellent because ourassessments against the Baldrige Criteria indicate thatwe are.

Organisational excellence is the foundation fromwhich we deliver operational excellence and on whichwe do the things we need to if we are to develop andretain the right people. This means that the BaldrigeCriteria have an important role in their own right.

We adopted the Criteria in 1999. They provide aframework within which to pursue organisationalexcellence. Consequently, they serve as an importantenabler in inculcating the ‘continuous improvement’culture that the Navy requires if we are to achieve‘organisational excellence’.

The concept of the Criteria is relatively simple. If anorganisation is to be world class in what it does, then itmust use processes and resources as a system and ina way that sustains the delivery of outstanding resultsacross ‘the business’.

This award application is arranged in the order of theseven key areas (criteria) in which world-classorganisations have excelled. It is prefaced by anoverview (called an organisational profile), whichdescribes the Navy and what we do, and sets the scenefor the more detailed explanations that follow. The textof the subsequent six sections follows a series of ‘howdo you …?’ questions - while the seventh section consistsmainly of the key measures we use to chart our deliveryof ‘the mission’ and our passage towards the Vision.

There are a number of advantages in following theBaldrige Criteria approach:

● It is widely used around the world and hasinternational credibility.

● It ‘enables’ bench marking and comparisons.● It provides a systematic approach to organisational

improvement.● It is descriptive and not prescriptive so it can be made

to ‘fit’ the Navy and we don’t have to change to ‘fit’the Criteria.

● It enables progress to be measured towards‘world class’.

This application document, the Navy’s third, shows justhow far we have come over the past seven years onour journey to ‘organisational excellence’. Our firstapplication, in 2001, was to ‘test the water’ and it provedto be very helpful in identifying opportunities forimprovement. Our second application showed we hadmade further improvements. Exploiting the learningsfrom those two applications, and making furtherimprovements from the lessons in the ‘feed-back’reports, we are yet again seeking to measure ourprogress with this application – and searching for thoseopportunities to do things even better.

This is the only document that provides acomprehensive description of how the Navy ‘works’as a complex and, in the New Zealand context,large organisation. It is recommended reading forall those who seek to understand how we do much ofwhat we do.

We can all be proud of what we have achieved andhow far we have come on the improvement journey.This application and the evaluation that follows willenable us to make further progress towards becoming‘the best small-nation Navy in the world’.

DI LedsonRear AdmiralChief of Navy

FORWARD

Rear Admiral DI Ledson

Forward i

Table of Contents ii

Organisational Chart iii

Organisational Profile P1

P.1 Organisational DescriptionP.2 Organisational Challenges

Category 1: Leadership 1

1.1 Senior Leadership1.2 Governance and Social Responsibilities

Category 2: Strategic Planning 10

2.1 Strategy Development2.2 Strategy Deployment

Category 3: Customer and Market Focus 15

3.1 Customer and Market Knowledge3.2 Customer Relationships and Satisfaction

Category 4: Measurement, Analysis, and Knowledge Management 20

4.1 Measurement, Analysis and Review of Organisational Performance4.2 Information and Knowledge Management

Category 5: Human Resource Focus 27

5.1 Work Systems5.2 Employee Learning and Motivation5.3 Employee Well-Being and Satisfaction

Category 6: Process Management 36

6.1 Value Creation Processes6.2 Support Processes and Operational Planning

Category 7: Results 43

7.1 Product and Service Outcomes7.2 Customer Focused Outcomes7.3 Financial and Market Outcomes7.4 Human Resource Outcomes7.5 Organisational Effectiveness Outcomes7.6 Leadership and Social Responsibility Outcomes

Glossary of Acronyms A1

Glossary of Definitions D1

TABLE OF CONTENTS

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ORGANISATIONAL CHART

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P.1 Organisational Description

P.1a Organisational Environment

P.1a(1). Main Products and Services. The RoyalNew Zealand Navy is one of three armed Services thatcomprise the New Zealand Defence Force. Its coreservice is the provision of Maritime Military Capability(MMC) through the maintenance and operation of navalforces for employment by the Government in supportof State objectives. This core service comprises twomain parts: force structure (quantity) and Preparedness(quality) (see Figure P1-1). The force elements of theNavy are the service delivery mechanisms. Operationsconducted are either Navy operating alone, in supportof other Government Agencies, with the Air Force orArmy, or as part of coalition activities.

The Navy conducts operations that span the spectrumfrom peace to war. (see Figure. 3.1-4). These operationsare either ‘small - ‘o’’ operations, such as defencediplomacy and border protection, or ‘big - ‘O’’ operations– those where higher-level military skills and capabilityare required. The latter Operations are conducted underNZDF ‘Output 16’, and are directed by the Governmentthrough the CDF.

Current services required of the Navy are specified inthe Defence Force Output Plan and future services aredescribed in the Defence Force Statement of Intent.Preparedness is a key component of Military Capability,and the Output Plan specifies the Level of Capabilityrequired. The Navy provides its services to the CDF,Navy’s Key Customer, who delivers Defence outputsto Government through the Minister of Defence (seeFigures 3.1-1 and Table 3.1-1).

P.1a(2). Organisation Culture. The Navy’s culture isshaped by its history and maritime environment. Theculture is one of service to the country based on aninherited military tradition set alongside discipline,innovation, improvement, and pursuit of excellence. Itdiffers from the culture of the other Services becausesea service is characterised by crowded livingconditions, and family separations for prolonged periods– sometimes for up to eight months at a time.

An underlying ethos of naval culture, both ashore andat sea, is teamwork, based on the shared experienceof sea service. A warship is a close-knit community, notunlike a village, where many young men and womenco-exist in a confined physical environment. Loyalty tothe Ship’s team is paramount, and it is this force thatbinds the members of the crew together and allows themto live, work, and learn cohesively.

Purpose. The purpose of the Navy is encompassed inits Mission Statement.

‘To contribute to the security and prosperity of all

New Zealanders through the delivery of versatile,

responsive, and effective Maritime Military Capability

across the spectrum of operations.’

Vision. The Navy’s Vision is:

To be the best small-nation Navy in the world

There are three strategic themes associated with thevision: Operational Excellence; OrganisationalExcellence; and our people being fit, resilient, andcapable.

Values. The Navy’s Core Values are known as ‘the 3Cs’:

Courage Commitment Comradeship

The values are articulated by behaviours that provide amechanism for making the values real for employees(see Table 1.1-1).

P1.a(3). Employee Profile. Navy’s people are dividedinto three broad categories. Uniformed service membersare sworn or attested servants of the Crown and areeither Regular Force (RF- full-time) or VolunteerReserve (VR - part-time). Conditions of service foruniformed personnel are prescribed in the Defence Act1990. The remainder of the workforce is made up offull-time or part-time civilian employees (CIV) whoseconditions of employment are administered by the NZDFwithin the Employment Relations Act. There is anemphasis on bi-culturalism, within the context ofa multi-cultural organisation, providing equalopportunities for employees regardless of gender orsexual orientation (see Table P1-1 and Figure P1-2).

ORGANISATIONAL PROFILE

P1

Figure P1-1 The Elements of Maritime Military Capability

personnel, in support roles. Most civilians are permanentemployees except for a small number on short-termcontracts. Half of the permanent civilian personnel areunion members and belong to the Public ServiceAssociation. Bargaining takes place at the NZDF levelfor all Defence civilians.

Special Health & Safety Issues. Warships areinherently hazardous workplaces, eg. they are subjectto external attack, maritime hazards and high voltages,carry munitions, create radiation emissions, and operatehelicopters – all in a constantly moving environment.Ashore, the Navy operates within high-risk areasincluding the Naval Dockyard (an industrial and portarea) and the RNZN Armament Depot at Kauri Point.To mitigate OSH risks, high standards of medical, dental,and physical fitness are maintained and high-qualitytraining is provided, both general (such as fire-fightingand damage control where all uniformed personnelreceive continuous training) and branch/job specific. TheNavy has specific processes and systems to deal withHealth and Safety issues, including SHEMS, HSNO,and mental health strategies. The latter is developedby the NZDF with Navy input. To assist personnel, theNavy Community Organisation coordinates support topersonnel and their families including budgeting advice,social workers, chaplains, child-care and other socialservices.

P.1a(4). Technologies, Equipment, and Facilities.

The Navy’s most complex ships are the ANZACFrigates, with embarked helicopters, which contain anarray of modern technologies related to combat at sea.The fleet replenishment tanker has technologies relatedto fuel management and delivery of fuel to ships at sea.The hydrographic vessels use advanced technology forsurveying. Warfare and bridge simulators supporttactical training ashore. Although the overarchingstrategy is to invest in proven technology, Navy is oftenthe sole user of some technologies, for which there isoften little domestic infrastructure to support them.

Navy communications and Information Technologyinfrastructure is a combination of military andcommercial systems. Military communications, withmultiple levels of redundancy, rely on satellites andworld-wide networks of radio stations. Commercialsystems support computer network communicationsuch as would be found in any comparable New Zealandorganisation; the main exception is the ability tocommunicate with ships at sea.

Equipment. Navy’s prime equipment is ships and thecomponents that provide them with the versatilityrequired for naval service. Navy is currently involvedwith the Ministry of Defence in a major acquisitionprogramme called Project PROTECTOR to procurepatrol and support force vessels. The new vessels willfill many roles and will enable the Navy to better supportexternal agencies such as NZ Customs, the Ministry of

P2

Military Personnel. RF personnel are selectivelyrecruited for their potential, and generally join fromsecondary school and tertiary institutes. The Navyprovides the education and training required forpersonnel to perform their duties. There is an emphasison developing people, both in trade/job skills andpersonal qualities, throughout their careers. Jobs areknown as ‘postings’ and generally last one to three years.

Uniformed personnel are subject to the AFDA, whichprohibits unionisation or bargaining activities by Servicepersonnel. In the absence of a union, Navy has aDivisional System for the management of uniformedpersonnel welfare, and a formal complaints mechanismtailored for EEO, and OSH. There is a strong emphasison superiors ‘looking after’ their subordinates and theredressing of unfair treatment. The rank structuredivides uniformed personnel into officers and ratings.People join both groups at the bottom and work theirway up through promotion to increasingly higher ranks;ratings have opportunities to become officers.

There are three main branches in the Navy: Operations(which includes Aviators and Divers), Engineering, andSupport. In addition, the Navy requires specialistofficers, such as doctors, educators, organisationalpsychologists, construction engineers, lawyers, andchaplains who are recruited once they have completedtheir education and training, and have gainedexperience.

Civilian Employees. Navy employs civilians ashore toprovide expertise, working in partnership with uniformed


Staff Type Officers Ratings Totals

Regular Male 381 1178

Force Female 87 350 1996Total 468 1528

Volunteer Male 75 154

Reserves Female 18 42 289Total 93 196

Civilian Male 253 426Female 173

Total RF, VR & Civ 2711

Table P1-1 Employee Profile Statistics (as at 28 Feb 2006)

Figure P1-2 Regular Force Age Groups

Fisheries, and the Immigration Service for border patrol,MFAT for defence diplomacy, and DOC for remotelocation re-supply. Some of the Navy’s equipment isreplicated ashore for training purposes.

Facilities. The Navy’s prime location is the Naval Basein Devonport which can be likened to a small town; itincorporates a port industrial complex, training schools,accommodation and recreational facilities, a housingestate, a hospital, warehouses (for stores andammunition), churches, offices, a sea-based NoiseRange at Great Barrier Island, a Marae, and a myriadof other facilities. The Navy’s Headquarters is inWellington and shared with the NZDF and otherServices. Other facilities include the WhangaparaoaTraining Centre, Irirangi Naval Communications Facilitynear Waiouru, and recruiting offices and VolunteerReserve facilities in the main centres.

P.1a(5). Regulatory Environment. Navy is requiredto comply with all New Zealand statutes and regulations(however, Navy is exempted from some legislation such

as the Historic Places Act 1993). The key legislationaffecting Navy is the Defence Act, AFDA, Public FinanceAct, Resource Management Act, HSNO and the PublicSector Act. In addition, the Navy is subject to the Lawof Armed Conflict, the Geneva Convention, nationalemergency regulations, international laws of the sea,and bi-lateral and multi-lateral agreements. There area large number of international military standards thatNavy adheres to, to ensure inter-operability with allies.Applicable OSH, accreditation, certification andregistration requirements are at Table P1-2. As agovernment department, Defence is subject to financialconstraints, methodologies and accounting standardsrequired by financial authorities such as Audit NZ andTreasury.

P.1b Organisational Relationships

P1.b(1). Structure and Governance. The governancesystem and reporting relationships are described in theDefence Act 1990. Navy’s CEO, CN, reports to CDF,and is a member of the Chiefs of Service Committee/ELT. CN is CDF’s professional and principal advisor onthe use of MMC. The full governance systems aredescribed in the Eligibility Application.

P.1b(2). Customers. The Navy’s customer is CDF, towhom CN delivers MMC. The Government’s defencepolicy objectives and outcomes are achieved inassociation with numerous other governmentdepartments and military partners. In most situationsthe Navy acts in a supporting role to the otherdepartments, making them in the nature of customers(Intermediaries - see Figure 3.1-1 and NZDF SOI). Thefinal beneficiaries of the Navy’s core service of MMCare the people of New Zealand.

Customer Requirements. CDF’s requirements of theNavy are published in the annual NZDF SOI andexpanded in the annual Output Plan (including asupporting Schedule that is ‘Classified’). CDF alsoprovides CN with an annual directive outlining his‘customer requirements’. Navy refines the informationcontained in these documents into its Fleet Plans andAnnual Plans. Specific requirements and expectationsof CDF and participating stakeholders for operationalmissions are promulgated through a military planningprocess that commences with the issue of a CDFwarning order. The Navy has no autonomy to find newcustomers and cannot be considered a competitivebusiness. CDF’s key requirements and expectationsare a combination of Maritime Military Capability, fiscalresponsibility, a high-level of military professionalism, andreputation management.

P.1b(3). Key Suppliers and Supply Chain Roles of

Suppliers and Partners. The Navy is reliant onsuppliers for products and services ranging fromconsultancy to specialised weapon systems.Consultants are engaged to assist in the Navy’sinnovation processes, and an important strategic partner(VTF) is intimately involved in supporting innovation inengineering services. Supplier roles are described inTable P1-3.

P.1b(4). Partnering Relationships. The Navy has threepartnering relationships:

Military partners: These are other military organisationswith which Navy works closely. Key among these arethe NZ Army and Royal New Zealand Air Force(RNZAF). Also important are the Royal Australian Navy,the Royal Navy, AUSCANNZUKUS (see P.2a(3)) andthe Republic of Singapore Navy.

Business partners: The key relationship is withVTFitzroy (VTF), which manages Navy’s Dockyardunder contract (see 6.1a(4)).

Government Agencies: The NZDF has key partneringrelationships with several other Government Agencies,such as the Ministry of Foreign Affairs and Trade(MFAT), Department of Conservation (DOC), Ministryof Fisheries (MFish), and NZ Customs. Navy supportsthese agencies with its ships and other resources.

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Registrations Unit Affected

GTE under NZQA Naval College

Licensed and Navy HospitalAccredited Hospital

ISO 9001:2000 Ship Repair UnitNaval Supply DepotFleet Repair Group

EEO Trust Navy

ACC Accreditation Occupational Safety& Health Unit

Table P1-2 Accreditations and Registrations

P.2 Organisational Challenges

P.2a Competitive Environment

P.2a(1) & P.2a(2). Competitive Position. As aGovernment maritime military service, the Navy doesnot operate in a competitive market, and does not havecompetitors for service provision, but does compete forfor funding allocation, reputation, commitment to theJoint Effect, and commitment to the whole-of-government approach.

P.2a(3). Performance Comparison. Navy’s firstsources of comparison are the Army and RNZAF whoshare corporate IT systems, manage similar processes(particularly HR and in the HQJFNZ) and contribute todefence and government outcomes. Specificopportunities with the Army and RNZAF include OPRES,

and NZDF OAtS. The Navy has networks andrelationships with the forces of Australia, Canada,United Kingdom, Singapore, and the United States togather comparative data that is utilised mostly atfunctional and operating levels, rather than at thecorporate level. Adoption of the Baldridge CPE, and thesubmission of three award applications, has been astrong corporate performance comparator andbenchmark.

Other sources of comparative data include:

● The NZBEF and some of its corporate members.● Population survey data from professional market

survey companies.● Independent institutions such as the NZ Institute

of Management.● BPIR.

P4


Value Creation Process Key Suppliers Role

Career and Work Systems NZQA, Universities, TOPNZ Specialist training, management models

Logistics System Original Equipment Manufacturers Fuel, weapon system support, food(OEM), BP, Saab, Crean, YASL, provisioning, clothing, office equipment,VTF, Atlantic & Pacific Travel, travel bookings, infrastructure servicesComputer Brokers, Alstrom,Blackwoods (NZDF), Excel

Fleet Readiness VTF, MFAT, MOD, CDF, Customs, Policy direction, capacityMFish, Doc, Fisharies, NMCC,Police, MSA

Leadership Blanchard Consulting Leadership model & training

Leadership NZBEF Networking, advice, evaluation

Table P1-3 Key Suppliers’ Roles in Relation to Value Creation

Key Suppliers & Roles (*-NZDF) Defined by Communication Mechanism

VTF (ship repair & maintenance) 10 year Commercial Integrated project planning teams &Management Agreement appropriate functional area joint meetings

Defence Technology Agency (DTA) NZDF Agency Permanent Liasion Officer. Access toNZDF Systems

BP* (fuel) 5 Years Service Contract NZDF relationship manager, single servicereps., quarterly meetings

Saab Systems (Command and Service Contracts Email, personnel secondmentsControl systems)

Crean (food) 5 year Service Contract Account Manager

YASL* (clothing) 5 year Service Contract Strategic Focus Working Groupsthrough NZDF RelationshipManager, single service reps

Blackwoods* (consumables) 5 year Service Contract

Corporate Express (Stationery 6 years Service Contractand Furniture)

Key Partners Defined By Communication Mechanism

RAN, RSN, USN,RN, RMN, RCN Five Power Defence Direct functional team links, andArrangement, MOU, CDR benchmarking exchanges between SubjectAUSCANNZUKUS, ABCANZ, Matter Experts. Bi-lateral/Multi-lateral fora.TTCP, WPNS Internet. Multi-national exercises.

Personnel exchanges. Conferences.Shared email systems (RAN/RNZN).

USCG MOU Benchmarking

Table P1-4 Key Suppliers & Key Partner Relationships

There are some limitations on the Navy’s ability toobtain relevant data:

● There is no other Navy operating within the NZenvironment. Although data is collected fromoverseas navies, this is often not directly relevantto the NZ Navy’s specific political, economic, orsocietal environment.

● Comparative data with the two other services,particularly HR data, is relevant but not always usefulas benchmarks due to the significant differences inthe organisations operating context.

● Data from overseas navies, particularly capabilitydata, is often classified and is not released to othernavies.

P.2b Strategic Challenges

The Navy’s key strategic challenges are in Table P2-1.Relative priority of challenges is calculated usingpairwise comparison to frame actions to address thechallenges.

P.2c Performance Improvement System

The Naval Leadership Board (NLB) meets monthly toreview performance measures and set strategies forboth improvement and the mitigation of risk to currentprogrammes. Underpinning this system are:● A dedicated business excellence team (Nx),

reporting directly to CN● DPMS perspective owners (champions)● Internal assessment of functional units and force

elements based on CPE (in abeyance since 2004to concentrate on higher priority initiatives)

● The Criteria for Performance Excellence modelintroduced into leadership courses

● Basic and specific improvement tools taught onadvancement courses.

The Navy’s culture is one of learning (ie. OFIs) notblame. Organisational learning is achieved through awide variety of methods, including but not limited to:

P5

● Internal CPE assessments (in abeyance since 2003).● External CPE assessments.● Post activity reports.● Briefings/Debriefings.● Conferences, visits, and seminars.● Internal and External Audits (ie. MOET, MoD

Evaluation, OPRES etc).● Personnel exchanges.

Organisational learning is captured within a well-structured set of operating procedures and policymanuals (DFO, NZBR etc), the Electronic LessonsLearned Database (EARLLs), the NZDF and NavyIntranet, and more recently the use of MicrosoftSharepoint collaboration tools. This latter use oftechnology will be utilised for knowledge managementunder the NZDF sponsored Knowledge ManagementProject.

Evaluation of key processes is achieved through theDPMS scorecards (see Category 4 where the systemis fully described). In addition, units such as MoDEvaluation, Inspector General (Defence), InspectorGeneral (Navy), the RNZN MOET, and externalconsultants (eg. in the ESP Project) conduct audits andevaluation of processes.

Process Improvement is achieved through the Navydeveloped SAPI manuals (see Category 1). For tacticallevel improvement (ie. ships and other force elements)the MOET conducts assessments of force elementcapability and procedures, facilitating organisationallearning and process improvement. NZBEF Awardassessments and use of the RAN and RN equivalentsof the MOET are also important in gaining an externalview of the organisation for identification of OFIs.


Strategic Challenges Details Relative

Priority

Staffing the NavyTo overcome the critical shortfalls in some areas and meet

1the overall requirement for growth to achieve PROTECTOR targets.

Introducing the PROTECTOR FleetTo manage the changes associated with introducing three new classes

2of ship in 2007 so that their potential capability is realised.

Maintaining Combat ViabilityTo maintain a war-fighting focus and capability while the

3constabulary tasks of the PROTECTOR fleet are introduced.

Managing ChangeTo meet the challenges of accelerating change in a holistic

4and systematic way without disruption to output delivery.

Measuring Performance To build on current success to create a more effective measurement5

and Value system for performance management and demonstration of value.

Optimising Investment To ensure that investment and resources are prioritised6

and Resources to provide the best value for the Government.

Table P2-1 Strategic Challenges (as at 1 March 2006)

1.1 Senior Leadership

The Navy’s Chief Executive is the CN. The SeniorLeadership board is the CLE, comprising CN, DCN,MCC, and CFO(N). The CLE is supported by the NLBwho assists CN to lead the Navy.

1.1a Vision and Values

1.1a(1). Vision and Values. The Navy’s Vision and

Values were originally set using a process that involvedthe entire Navy, and are reviewed as part of the StrategicManagement Process (SMP - see Cat 2). The Navy’sCore Values have a set of associated behaviours thatdemonstrate how to ‘live’ the values (see Table 1.1-1).

The Navy’s Vision and Values are deployed throughthe mechanisms in Table 1.1-2. Deployment of Visionand Values to the Navy’s Strategic Business Partner,VTF, is through the multi-level partnership relationshipdescribed in Figure 1.1-1. A public example of howembedded the core values are occurred in Februarythis year. Petty Officer Robert Hewitt was interviewedafter a 75-hour ordeal in the sea off Mana Island. In hisinterview he spoke of the Core Values and what theymeant to him during his ordeal, and how the Navy divers

1. LEADERSHIP

had exemplified the Navy’s Core Values in his rescue.Adherence to the Core Values is measuredorganisationally in the Core Values Index (see 7.6-2).

The Navy’s Vision ‘to be the best small nation Navy inthe world’ has endured for six years. Recent work hasconcentrated on developing a clear description of whatthe ‘best small nation Navy in the world’ will look like in

1

To Employees: To Key Suppliers: To Key Partners:

● Face to face ● Tender documents ● Chiefs of Service Committee (COSC)/ ELT● Written Documents ● Meetings with key personnel ● Formal meetings at working level● Navy Manuals ● Representative visits ● Senior leadership visits to overseas● Signals ● Governance boards partners● Email ● Navy Today ● Benchmarking Visits● Personnel Appraisal Systems ● Navy Today● Navy Magazine (Navy Today)

● Via Command Chain ● Meetings with key personnel ● Chiefs of Service Committee (COSC)/ ELT● Divisional System ● Governance board meetings ● Formal meetings at working level● Complaints and Representations ● Representative visits ● Senior leadership visits to overseas● 4I Chit system partners● Participation in surveys (Your Say) ● Benchmarking Visits● Open forums and meetings ● Navy Today

Table 1.1-2 Communication in Relation to Navy Values, Directions and ExpectationsOb

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Figure 1.1-1 Navy Relationship with VTF

Definitions Associated Behaviours

● Challenge others to do the right thing

To be brave enough to do● Accepting responsibility for what needs to done

what one believes to be right● Being accountable for my actions● Accepting and providing honest feedback● Doing the job despite adverse or hostile conditions

● Setting challenging goals and taking steps to achieve them● Contributing to individual, team and organisational improvement

The state of being involved in ● Promoting the Navy in a positive wayan obligation (or pledge) ● Meeting the needs of my customers and my team

● Carrying out my duties, including difficult or unpleasant ones, to the best of my ability● Working in partnership with the Navy for our mutual benefit

● Helping everyone get a fair go

Companionship with those who● Respecting different ideas, feelings and perspectives

share one’s activities● Encouraging, supporting and helping all in the Navy family and in the wider community● Sharing my knowledge and skills● Supporting Navy social, sporting and cultural activities

Table 1.1-1 Navy Core Values and Behaviours

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actions’ and ‘challenging others to do the right thing’.These Values are further developed in leadership andappropriate specialist training such as financialmanagement and purchasing. Ethical and legalstandards are set out in various manuals (see Table1.1-3), supported by statutory requirements and NZDFpolicy and procedures, whilst regular audits verifycompliance (see Figure 1.2-1). The NZDF disciplinarysystem provides a complementary system for enforcingethical behaviours.

1.1a(3). Business sustainability is addressed bySenior Leaders through the Strategic Management andthe NZDF Budgeting Processes. The NZDF has recentlycompleted a 10 year review to rebuild and sustain theDefence Force to the level required by Government.Macro-level operating and capital budgets have beenagreed with Government, and internal processes put inplace to prioritise and allocate resources to achieve thisoutcome. All new initiatives are planned and costedout to a minimum of five years, tested against theNZDF’s strategic priorities, and then fed (withmilestones and targets) into the Annual Planning and

2

Mechanism Purpose

RNZN Core Values (NZBR 23) Provides value-based guidance for personnel facing ethical and legal issues

DFO 9/2003 Overarching statement of ethical behaviour for all NZDF Personnel

NZDF Code of Conduct Code of conduct specifically for Civilians

DFO 3/2004 Identification and management of conflict of interest, corruption or dishonesty

DFO 7/2005 Maintenance of professional close personal relationships

DFO 52, Chapter 8 Ethics in purchasing within NZDF

DFO 70, Chapter 8 Mechanism for protected disclosure of dishonest, corrupt, grossly negligentor mismanagement of NZDF public funds or resources (aligned to ProtectedDisclosures Act 2000).

Armed Forces Discipline When values, policy, and procedures have failed personnel may be

Act/Criminal Proceedings prosecuted through the Navy’s discipline system or, in the case of civiliancharges, referred to the NZ Police.

Table 1.1-3 Mechanisms for Legal and Ethical Behaviour/Code of Conduct

Figure 1.1-4 SSL Model

order to create focus, communicate long-term direction,and improve understanding. The result of this workdetermined that the Navy’s Vision could be defined bythree key themes: Being Operationally Excellent; whichis achieved by being Organisationally Excellent and ourPeople being resilient, fit, and capable through whatthey know, what they do, and knowing why they do it.Critical characteristics, measures, and Critical SuccessFactors are being developed for the Vision’s key themesand these are will be deployed using the Navy’sperformance measurement system to track progresstowards the Vision. Senior Leaders champion andreinforce the requirements of legal and ethical

behaviour by being role-models (See Figure 7.6-5), aswell as communicating the values through internal andexternal media (see Table 1.1-2).

1.1a(2). Ethical Behaviour. The Navy’s Core Valuesare aligned to legal and ethical behaviour. In particular,the behaviours associated with the Core Value of‘Courage’ include ‘accepting accountability for own

1. LEADERSHIP

Figure 1.1-2 Standard Improvement Tools

Figure 1.1-3 SAPI Booklets

Budgeting process. During a fiscal year, reports againstboth targets and budgets are monitored regularly, withan internal reprioritisation process that re-allocatesfunds to strategic areas of need.

Navy Senior Leadership creates an environment for

performance improvement, accomplishment of

mission and strategic objectives, innovation, and

organisational agility through adoption of the Criteriafor Performance Excellence (CPE) principles Navy wide.This includes internal Navy-developed and deliveredtraining that focuses on performance improvement (SeeFigure 1.1-2); and the SAPI training and handbooks(see Figure 1.1-3). A significant strategic decision, inthe 1990s, was to move from a culture of functionalleadership to one of Situational Leadership (see Figure1.1-4). The model is fully deployed and provides asystem for leading people through stages towards self-committed direction.

To create an environment of organisational agility

the NLB approves ‘pilot’ programmes to fast trackinnovative initiatives that have potential for significantbenefit. In addition, funding is set aside for innovativeideas by the DCN. CN has established a Sailor’sLeadership Team (SLT), comprising experienced SeniorRatings, who are tasked with fast-tracking thedevelopment of initiatives; to Navy’s knowledge, thisinitiative by CN is the first of its kind (see 5.1a(1)). CNplaces an emphasis on operational agility to achievethe mission and exceed the customer’s expectations.He requires deployed Naval Vessels to be ‘deployable’on operations within prescribed response times. A recentexample is the diversion of HMNZS TE KAHA to thePersian Gulf, whilst nearing the end of a four-monthdeployment; TE KAHA responded within 35% of theprescribed response time. The Naval CommunityOrganisation (NCO) enables organisational agilitythrough supporting families during extendeddeployments and unexpectated changes in deploymentprogrammes. Another example is the Navy respondingto the 2001 Prison Service industrial action, where Navypersonnel managed Northern Region prisons at shortnotice (see Figure 7.1-11).

Navy Senior Leadership maintains a well-establishedenvironment of organisational and employee learningthrough continued support of the activities at Table1.1-4, and visible commitment to the principles ofcontinuous improvement (CN sits on the NZBEF Board).The Navy, as an international organisation that operatesin a global environment must maintain internationalrelevancy, and has a strong focus on organisational andemployee learning through sharing with partners. Aparticularly important facet of organisational learning isbuilt on the AUSCANNZUKUS relationship. Employeelearning is particularly strong, and is covered in detailin Category 5.

The Navy is required to develop its senior militaryleadership from inside the organisation. Promotionboards are held at various levels of rank advancement,and Senior Leaders are involved in the selection andidentification of future organisational leaders throughthe promotion board process. In addition, CN holds aformal succession planning conference bi-annually toidentify personnel for senior positions, both to meet theneeds of the Navy as well as plan the development ofcompetencies for potential future leaders. Recentexamples include sending a warrant officer to the UnitedStates Command Master Chief Petty Officer’s course,and agreement for Navy attendance at SingaporeanNavy senior leadership courses. CN personally reviewsall extensions of service for warrant officers; promotionboards for the allocation of lieutenant commander andabove; and senior development courses (eg. NZDF andforeign staff-courses, senior civilian managementcourses, and tertiary study applications). The directinvolvement of CN and other Senior Leaders ensuresthat short and long-term succession planning andprofessional development of future organisationalleaders is effectively managed.

1.1b Communication and Organisational

Performance

1.1b(1). Communication with employees is achievedthrough formal and informal channels (see Table1.1-2). The Navy’s culture, underpinned by thecore value of courage, encourages frank two-waycommunication throughout the organisation. Seniorleaders hold informal meetings with cross-sections ofthe Navy (recent examples include MCC luncheon withjunior officers, and CN luncheon with civilian staff). Navyleaders lead, manage, and motivate through ‘walkingthe shop floor’, which is an integral part of the Navy’steamwork environment; this results in opportunities forfree and frank communication.

Employee ‘opportunities to make a contribution’1

creates a foundation upon which innovation is realisedand organisational performance is improved. Theimplementation of the Situational Leadership model (seeFigure 1.1-4), Naval Excellence (Nx) Tools and SAPI(see Figure 1.1-2 and 1.1-3) as part of the Navy’sadoption of the CPE framework is a key enabler inproviding the environment and tools for individuals andteams to contribute to organisational improvement. Inaddition, the Navy introduced a formal corporate-widesuggestion scheme in 1999 called the ‘4 India Chit’2

that facilitates capturing of performance improvementinitiatives. The 4I process is being reviewed as a Project

3

1. LEADERSHIP

1 Navy considers empowerment to be the ability for

employees to make a contribution.

2 Traditionally, a 4W chit was a form raised to advise

maintenance staff of defective equipment. The 4W chit

mirrors the traditional concept for process.

within the SP to improve focus on process improvement.The review is expected to be completed by end ofFinancial Year 07/08 (Innovation Framework).

Senior Leaders take an active role in employee reward

and recognition to reinforce high performance of bothindividuals and teams within an organisational context.Well-developed mechanisms such as acceleratedadvancement for promotion, selection for competitivetraining courses, and Senior Leader commendationsfor work performance also reinforce this dimension. (SeeFigure 7.6-7 and Table 1.1-5)

1.1b(2). Senior Leaders create a focus on action toaccomplish the Navy’s objectives, improve

performance, and attain the vision by creating anenvironment that fosters innovation and continuousimprovement. Focus on objectives is achieved throughthe design and adoption of a performance measurementframework, supported by a SP (see Category 2) that

measures by fact. Performance improvement andchange-management are required competencies ofNavy’s Senior Leaders and are rewarded byadvancement and promotion. Action plans (Projects)and other initiatives are prioritised by the NLB at monthlymeetings and aligned to strategic objectives at quartelystrategic management meetings.

Senior Leaders focus on creating and balancing

value for customers and other stakeholders throughthe SMP (see Category 2) and setting of targets withinthe DPMS. The focus on balancing value is constrainedby balancing decisions made by Navy’s customer, CDF,who apportions funding to support the NZDF Ouput Planand Capital Plans.

4

1. LEADERSHIP

Method Purpose

ABCANZ Military benchmarking/information sharing

TTCP Scientific benchmarking/information sharing

Tripartite talks UK/NZ/AUS Navy benchmarking/information sharing

International Courses Military courses (professional and management). AUS/UK/US.

AUSCANNZUKUS Military benchmarking/ information sharing/ shared doctrine

CWID, Trident Warrior Technology demonstratiors/ laboratories/ exercises

Personnel Exchanges Long-term (AUS/UK) and short-term (ANZAC (AUS) and Long-look (UK))

Navy-to-Navy talks Malaysia/NZ Navy benchmarking/information sharing (developing)Singapore/NZ Navy benchmarking/information sharing (well established)

RNZN/USCG Benchmarking Benchmarking agreement with US Coast GuardAgreement

ANZOWG NZ/AUS Operations Working Group – Navy to Navy talks

SAN/RNZN Benchmark Visits Benchmarking relationship with South African Navy (developing)

NZ Civilian Management Courses Senior personnel selected by CN for attendance.

Tertiary Studies Board Formal mid-career tertiary training (selection).

Volunteer Education Financial and time support for all personnel to complete approved tertiary -Assistance Study (see Fig 7.4-9 and 7.4-10)

Benchmarking US Coast Guard; Project Compass (360° reporting); BPTW Survey; OtherNZDF services, BPIR website

Various Conferences Western Pacific Naval Symposium; NATO Operations Working Group;Baldridge Quest; Australian Performance Management Conference

Military Exercises Regular International Exercise Programme

NZBEF Evaluations Provision of National Evaluators

Doctrine Adoption of allied doctrine and tactics, adapted for NZ needs

RNZN MOET Internal assessment of war-fighting capability with transference of best-practiceamongst units. Strong relationship with RAN equivalent which provides fortransference of knowledge.

Force Element Workup Force elements (ships, Defence Hydrographic Support Unit, and OperationalDiving Team) conduct periodic ‘workups’ to assess capability. These arenormally a cooperative arrangement between the Australian Navy Sea TrainingGroup and the RNZN MOET, leading to significant organisational learning froma larger partner.

Professional Associations IPENZ, NZ Law Society, NZ Institute of Management, Medical Council of NZ

Navy and Defence Books Repositories for procedures, doctrine, and approaches.of Reference (NZBR & DFO)

Table 1.1-4 Key Opportunities for Employee and Organisational Learning

1.2 Governance and Social Responsibilities

1.2a Organisational Governance

1.2a(1). CN is directly accountable to CDF to raise,train, and sustain the Navy, and CDF is accountable tothe Minister of Defence (see Defence Act s.5 and s.8).The organisation is open to public scrutiny through thechannels provided by the Official Information Act,parliamentary processes, Members of Parliament, andpublic interest groups.

CN formally delegates responsibility for two discreteactivities to two senior commanders: the MCC and the

DCN. The former is responsible to CN for the delivery offorce elements at the CDF’s directed level of capability(DLOC), the latter for the ‘raise, train, and sustain’aspects of the Navy (see Figure P1-1). MCC and DCN,in turn, further delegate responsibility and accountabilityto lower levels of the organisation with monitoringachieved through the DPMS and the NZDF OPRES.

Fiscal accountability is prescribed in the PublicFinance Act, Treasury Instructions, and in severalDefence and Navy process manuals. The processesare rigorous and based on formal delegations, budgetallocations, transparent competitive tendering, in-cyclereview and re-allocations, requiring end-of-year

5

1. LEADERSHIP

Awards & Recognition Purpose

New Zealand Honours and Awards Recognition of an individual’s superior performance and contributionat a National level

CDF Commendation Recognition of an individual’s or groups superior performance andcontribution at a NZ Defence Force level

CN Commendation Recognition of an individual’s or groups superior performance andcontribution at a Navy level

Sailor of the Year Recognition of a sailor’s superior performance and contribution at aNavy level

DCN, MCC, Commanding Officer, Captain Fleet Recognition of an individual’s or groups superior performance andPersonnel Training and Captain Fleet contribution at a subordinate Command or Area levelSupport Commendations

Sailor of the Quarter Recognition of a sailor’s superior performance and contribution at aship level at three month intervals

Personnel Development Board (PDB) awards Recognises a sailor’s repeated, above-standard performance withina ship

Maritime Strategy Course Honours Award Recognises the officer who provides the best final essay

Officer Leadership Development Programme Recognises the officer who demonstrates the best overall staff officerHonours Award potential

Tangaroa Division Prize Recognises the best all round University Scheme officer, graduatingfrom university

Minister of Defence Sword of Honour Recognition of the best all round officer recruit - each term

Junior Officer Common Training Cup Recognition of the most deserving Officer recruit for application,perseverance and positive attitude - each term

Blanchard Leadership Award Recognition of the officer recruit who demonstrates the best leadershippotential - each term

Divisional Officers Leadership Course Award Recognition of the top officer or Chief Petty Officer on the DivisionalOfficers Leadership Course

Spencer Tewsley Cup and Tankard Recognition of the best all round sailor recruit - each term

Commander Leadership Development’s Book Prize Recognition of the most improved sailor recruit - each term

Warrant Officer of the Navy Trophy Recognition of the top Leading Hand on the Petty Officer CommonPromotion Course

Warrant Officers Association Trophy Recognition of the top Able Rating on the Leading Rating CommonPromotion Course

Naval Excellence Awards Recognition of an individual or team improvement initiative thatcontributes to performance improvement

Sportsperson of the Year Recognition of an individual’s superior performance and contributionin sport at a Navy level

Chatham Rosebowl Annual award to the most efficient fleet unit

CDR W.L.J. Smith Trophy Annual award for Support Force Excellence

Promotion Formal, partially merit-based system determined by training andperformance that rewards high-achievers early.

Table 1.1-5 Employee Reward and Recognition

outcomes to be within one percent of budget (see Figure7.3-1). Navy operates within an NZDF corporatefinancial management system (SAP) that providesvisibility of all transactions to CDF’s Chief FinancialOfficer (see 6.2b(1)).

As the Navy does not have a governance structure inthe form of a board of directors, transparency of

operations and selection of disclosure policies isfocused at all employee levels, and is governed bypolicies and procedures set out in DFOs that require,among other things, that conflict of interest be declared.

The CDF manages all financial risk and audit activitiesin the NZDF using the Directorate of Risk andAssurance. It is independent of the three Services andreports to the CDF through the NZDF CFO. The ChiefDefence Auditor can appoint outside specialists to auditwithin Navy. Audit NZ conducts its own auditprogramme and advises CDF of the outcomes. AuditNZ reports to Parliament through the Auditor General.In addition to the normal financial auditing process, thereare a number of internal operational delivery auditteams. The NZDF Inspector General is able to conductnon-financial audits of the Navy and conducts audits ofoperational activities. The heirarchy of auditing agenciesis described in Figure 1.2-1 and covers the spectrumfrom military capability and performance through toorganisational performance.

The Ministry of Defence Evaluation Team conducts non-financial audits on specific activities to ensure theprotection of stakeholder interests, reporting to theMinister of Defence through the Secretary of Defence.Recent examples of MOD evaluation audits applicableto Navy are at Table 1.2-1.

1.2a(2). Senior Leaders’ performance is evaluatedindividually at least once annually by their superiorofficer, in the Officer’s personal report Form MD 68 andthe 360 degree multi-rater survey (currently voluntaryonly) and through monitoring of results of organisationalperformance within the DPMS. The perceived

performance of Senior Leaders is assessed throughYSS and OAts.

Senior Leaders use performance reviews to improve

their personal leadership by attending externally-facilitated leadership programmes, and CN personallyselects current and potential leaders to attend theseprogrammes. A recent innovative initiative was thepiloting of an Emotional Intelligence (EI) module on acommand course, facilitated by the Opra ConsultingGroup. The trial was successful and NLB subsequentlyapproved the deployment of EI training throughout theorganisation, to be integrated with mainstreamleadership training. After a successful period of voluntaryparticipation, the 360 degree multi-rater feedback issoon to be integrated into leadership training as apersonal development tool at specific career milestones.

1.2b Legal and Ethical Behaviour

1.2b(1). The Navy minimises the impact of its servicesand operations on society, in particular within the NorthShore and Auckland environs, but also its operations inports, coastal and international waters, by consideringpotential adverse impacts when:

● The NLB and the MCC develop action plans● Commanding officers and managers execute

daily operations● Project officers develop project plans

6

1. LEADERSHIP

Figure 1.2-1 RNZN Internal and External Audit Organisation

Year Ref Report

1999 247 Navy Sea-shore postings

249 Navy Technical Services

2000 256 Reserve Forces

2001 260 Introduction into service of newcapital equipment

263 Fuel Management

269 Review of Senior Officers overseas travel

271 Naval Training

272 Naval Health Service ClinicalServices Business Unit

2002 1/02 NZDF Health and Safety in Employment

9/02 Purchase by the Navy of Six RigidHull Inflatable Boats

2003 7/03 Review of Arrangements for the Repairof Sea-sprite Helicopter NZ3604

2004 3/04 Naval Deployments to OEF

7/04 Officer Career Management in the NZDF

10/04 Project PROTECTOR: Review of a MajorMulti-Agency Project

16/04 Personnel Retention in the NZDF

17/04 Management of Naval Housing

2005 1/05 Naval Territorial Forces

2/05 Naval Personnel Planning for PostPROTECTOR Fleet

19/05 Health and Safety Management

Table 1.2-1 Ministry of Defence Evaluation Reports - RNZN

● Specifying conditions in the dockyard managementcontract.

Navy actively manages, monitors and addresses theseimpacts through maintaining a strong liaison with thelocal Community Board, the North Shore City Council,Auckland Regional Council, the Ports of Auckland Ltd,and through daily working relationships with maritimeauthorities. Major community impacts potentially arisingfrom Navy services and operations are described inTable 1.2-2.

Navy is exempt from District Planning controls throughthe mechanism of a Defence Designation, howeverNavy has implemented a self-imposed plan ofdevelopment controls that aligns with the local DistrictPlan to provide certainty to the local community. Navyis not bound by the Historic Places Act 1993, but hasits own parallel heritage policy (DFO 32 Chapter 15).Navy anticipates and prepares for public concerns

through:

● A charter with the North Shore City Council thatincludes a ‘no surprises’ clause.

● The employment of an environmental planningmanager, responsible for the development ofplanning controls and ensuring that adverseenvironmental impacts are minimised or mitigated.

● Environmental policies such as the marine mammalmitigation policy, Navy Order 08/06, designed to

7

1. LEADERSHIP

Nature of Risk Source Approach to Mitigation

Public Nuisance Dockyard and Ships in Port Restrict hours of noisy operations.(eg. Noise Pollution) Monitor noise levels.

Ceremonial Minimise Navy Band use and noise from parade training.

Military live firing exercises Conducted at sea.Warnings given in Notices to Mariners.Marine Manual mitigation policy.

Military exercises generally Conducted away from shipping lanes and public areas.

Environmental Pollution Dockyard industrial activity Compliant underground systems.Road sweeping.Hazardous materials, noise and discharge management.Waste Management.

Fuel spillage Independent audits.Highly trained & well-equipped fuelling teams.Emergency equipment available.

Collision or grounding Highly trained watch keepers on ships.Damage control training for all personnel.Modern sensing equipment.

Weapon initiation Detailed NATO regulations for munitionsmanagement/ HSNO

Death/Injury to RNZN facilities Extensive contractor management system.Contractors/Staff & Public Restricted public access.

Safe Site safety programme.

Military activities generally Highest professional standards for safety at sea.

Major Industrial Accident Dockyard Training, supervision, equipment maintenance routines,and established processes.

Armament Depot, Strict adherence to storage and handling regulations forKauri Point hazardous materials/ HSNO/ SHEMS.

Table 1.2-2 Public Responsibility Risks at Sea/Shore

reduce the impact of Naval operations on whalesand dolphins.

● Actively engaging with local community groups,including consultation on proposed infrastructureprojects, or maritime operations that require resourceconsent under the Resource Management Act.

Examples of proactive community consultation andpartnership have occurred at both Whangaparaoa andat Kauri Point. They include regeneration of naturalforest with anti-predator fencing, planting and pestcontrol, in conjunction with the Auckland RegionalCouncil and volunteer groups. By working with theAuckland Regional Council at Whangaparaoa, a pest-free ‘mainland island’ is being created to support birdsmigrating from the nature reserve on Tiritiri MatangiIsland in the Hauraki Gulf. Navy participates in researchinto the accidental and unintentional introduction ofexotic marine organisms into local waters by ships(intake and discharge of cooling fluids), by takingsamples from vessels in the Naval Base dry-dock.

A more recent example of community participation hasbeen the removal of asbestos from areas within theNaval Base – whilst the activity was safe and well withinregulatory guidelines, the Navy though not required todo so, advised Devonport residents of the activity.

Overall legal and regulatory compliance. The primarymethod of managing legal compliance is to allocate

1. LEADERSHIP

8

responsibility to the functional area most affected, andto manage compliance by exception.

Operational and environmental risks are addressedas described in Table 1.2-2. All Navy SOPs are inherentlyfocused on minimising or managing risk and adverseimpacts on society.

1.2b(2). The Navy promotes and ensures ethicalbehaviour through:

● Articulated behaviours associated with the Navy’score values

● The NZDF Senior Leaders behaviour Code of Ethics(DFO 9/2003)

● Civilian employee Code of Conduct● DFOs that define ethical behaviours in purchasing,

employment conditions, harassment and EEOprinciples

● Training in ethics, for example the NZDF SpiritualHuman Ethical factors affecting Leadership, and Lawof Armed Conflict courses

● Enforcement via the AFDA● An inherent openness to public scrutiny, for example,

through media attention, Official Information Actrequests, and Parliamentary Questions

Key processes and measures for monitoring ethical

behaviour are listed in Table 1.2-3.

Navy has a range of avenues for monitoring and

responding to breaches of ethical behaviour. Themonitoring process is part of the Command Chainsupported by the AFDA and DM69 legal instructions.When unethical behaviour is suspected, there is an

Elements Key Processes Measures or Indicators

Purchasing Corporate system SAP Vendor Complaints

Financial Processes Audit Reports to CN/CDF/Minister/Paliament

Personnel EEO facilitation & complaints process Incident rateDisciplinary incidentsRelationships Disciplinary system Your Say Survey

Partners Contract Management Non-conformance reportsWork oversightJoint Planning

Governance Overview by HQ NZDF and Minister using audits Audit reports and disciplinary offenceDisciplinary system records monitor unethical behaviour

Contracting for Preferred contractors list Contractor complaints to:property maintenance Delegations monitored - MPsShip maintenance Minor and Major Tenders Board - Navy

Work Oversight

Table 1.2-3 Monitoring of Ethical Behaviour

escalating range of formal investigation or inquiryprocesses that may be implemented by Commanders,and a range of corrective, remedial, or disciplinarymeasures may be invoked.

1.2c Support of Key Communities

The scope of Navy’s involvement with key communitiesis captured in Table 1.2-4. Navy, at corporate and unitlevel, adopts NZDF community support criteria.

Navy is bound by the Public Finance Act and is unableto provide publicly-funded charitable support, ormaterials to the community. As a result, the focus ofinvolvement is in areas where time and labour can beapplied. In addition to being proactive, Navy considersfavourably any request for assistance, within NZ, thatmeets the following criteria:

● The work is not in competition with any local initiativeor commercial organisation

● The organisation is non profit making● The work will benefit the community● No materials are to be provided● Responsibility for risk mitigation and supervision

of the project (insurances, OSH, permits etc) isborne by the organisation requesting support

● Spare capacity exists to provide the support.

To facilitate the many and varied engagements undertakenby Navy, a Community Engagements Committeemanages the resources required to meet agreed activities.This is co-ordinated by the Navy’s Events, Management,Visits and Protocols Officer and results are reviewedquarterly by the NLB (see Figure 7.6-1).

1. LEADERSHIP

9

Key Communities Approaches

Types of support provided by Navy

Naval Community Organisation of 10 permanently funded specialists

Families of Navy Personnel ● Information and help bureau (24 hour contact) ● Provision of housing● Social welfare and chaplains ● Amenities and family events

(See also Fig. 5.3-1)

Direct liaison, Host Principals meetings on base, and structured support plan

North Shore peninsula ● School visits to Naval base ● Marae Visitsschools (Takapuna ● Use of Naval base facilities ● Role modelling in schoolsGrammar to Devonport) ● Speakers for functions ● Skill assistance with schools

● Staff time permitted ● Mentoring programmes● Base Access and personnel support for Stanley Bay School annual fundraising ‘10km Run;

Direct liaison with Community Board and council

Local Residents ● Supported through community ● Responsive approach engagements committee

A Community Engagements Committee supported by two permanently funded personnel.Annual grants through the Naval Sports & Recreational Council

Local Organisations ● Use of Naval Facilities eg. ● Open base days(sports, cultural, social, Swimming pool (schools and ● Navy Chapel (sea cadets, veterans, funerals)professional) clubs), Damage Control School ● Marae (local iwi and families)

(Fire Service), Sports fields ● Naval relations officers (unpaid) (Sports clubs) ● Bruce Mason Theatre, Takapuna● Share training ● Anniversary Day Regatta Committee – DCN● Partnering ● Navy Band Concerts● Local uniformed presence● Speakers for functions

Support through personnel involvement, leave, and pay systems and encouragethrough career structure

District, Regional and ● Membership of professional organisations (eg. NZBEF, NZOQ, NZIM, Engineering IndustryNational organisations Training Org., NZQA, Institute of Professional Engineers, Institute of Marine Engineers, IPENZ,

Standards NZ, MSA etc.● NZBEF Board of Trustees – Chief of Navy● Maritime Museum – Deputy Chief of Navy

Sharing Best Practice and Benchmarking Directly and Indirectly

Community of Business ● NZBEF Membership involvement ● COER and Massey University with Knowledge Hours and NZBEF benchmarking club Awards Programme ● One-on-one liaison with other NZBEF● Presentations at Conferences members such as ACC, ARC, NZ Fire

Service etc

Support community involvement through Staff time given off to different activites

The Community at Large ● Work Projects ● Selected Charity Support

Table 1.2-4 How Navy Supports and Strengthens its Communities

2.1 Strategy Development

Within the Navy, Strategic Planning is termed ‘StrategicManagement’, acknowledging that the plan is only thestarting point from which to achieve Strategic Goals.Strategic Management follows a systems approach toidentifying and making the necessary organisationalchanges and measuring performance as the Navymoves towards its Vision. Strategic Managementincludes Strategic Planning (the setting of direction) aswell as Strategic Plan deployment, implementation,execution, and monitoring.

2.1a Strategy Development Process

2.1a(1). The Navy conducts its Strategic

Management via the Strategic Management Process(SMP) illustrated in Figure 2.1-1, which includes bothtop-down and bottom-up planning and participation. Theprocess is followed annually in full, and partially at morefrequent intervals to ensure agility. Progress ismonitored quarterly at the NLB, and continuously atlower project management levels, primarily through anintegrated ‘benefits management’1 methodology tailored

2. . . . . STRATEGIC PLANNING

to each action plan. Periodic re-planning and injectionof continuous improvement initiatives are triggered byresults that vary from those planned, or by opportunitiesor threats that were not identified during the SMPpreviously. All new initiatives are prioritised inaccordance with the Navy’s goals and the CN’s guidingprinciples, and are checked against available resourcesbefore being implemented.

The five key process steps are shown in Figure2.1-1, and are named ‘Get It’, ‘Set It’, ‘Move It’, ‘ProveIt’ and ‘Celebrate It’. The first key step, Get It, consistsof two parts: an analysis of the Navy’s purpose and theexpectations of customers and other stakeholders, andsecondly, an analysis of the Navy’s environment, andits strategic capability relative to it. The output of theGet It step is a prioritised list of strategic challenges.The second key step, Set It, involves direction settingand the development of strategies. In Navy planningterms, ‘goals’ are measurable and time-bound end

10

1 Benefits Management is in the early stages of

deployment.

Figure 2.1-1 Navy’s Strategic Management Process

states (the CPE’s ‘strategic objectives’) that are setnormally in response to one or more strategicchallenges; ‘strategies’ are the pathways to reachingthe goals (CPE’s action plans), and ‘objectives’ (CPE’sgoals) are activity milestones or key performanceindicators that mark progress towards the goal (seeFigure 2.1-2). The output of Set It is a SP, a section ofwhich is in Table 2.2-1.

The third key step, Move It, consists of two parts: firstly,deployment, in which the strategic plan is convertedinto a ‘journey map’ that identifies the order thatstrategies will be implemented, underlying assumptions,linkages between strategies, and outcomes that will beachieved along the way. This map tells the story ofhow the strategic plan will unfold. Selected groups ofstrategies (programmes) have their own journey maps,but at a lower level. The map is then used to informbusiness plans such as HR plans or capital investmentplans. The second part of Move It is ‘Implementation’,in which project management or business as usualprocesses are used to implement the plans. Continuousimprovement initiatives are introduced at this step, inbetween full planning cycles.

The fourth key step, Prove It, consists of ongoingevaluation of progress. This includes quarterly NLBreviews, the ongoing monitoring of benefits (promisesin the plan or in business cases) through the benefitsmanagement methodology1, monitoring of the Navy’sDPMS, and other measures as required.

The fifth step, Celebrate It, utilises recognition, reward,and communication mechanisms to highlight theattainment of strategic goals or targets.

To enable the involvement of key participants, and toensure ownership and a credible plan, the SMP takesa number of months to work through (it is not confinedto a single annual strategic retreat), and participantsare involved in different parts of the process and indifferent ways. For example, the CDF participatesthrough issuing the NZDF SP and involvement of hissenior staff as appropriate.

Key participants include all Senior Leaders, functionalarea heads and key managers, subject matter expertsirrespective of rank, key personnel from other parts ofthe NZDF, naval managers of community, partner/supplier and intermediary relationships (Figure 3.1-1),and representatives of naval ratings. The process

identifies potential blind spots through theinvolvement of the wide range of participants whenapplicable, and the use of third party strategic planningprofessionals to review the plan and the process. Blindspots can also be identified during the ‘journey mapping’step, in the development of business cases withassociated benefits maps, and through the use ofdetailed project plans that include stakeholdermanagement plans. Early detection of variancesagainst planned results, conducted as part of normalmonitoring, help to reveal blind spots in time forrectification to occur.

The long-term planning horizon is 20 to 30 years,set by the average life of NZDF capital equipment; aformal plan is not developed over this period, howeversome business plans, such as NZDF’s capital plan,extend towards this, and the long-term view informsmedium-term plans. The medium-term horizon is fiveyears, and this is the horizon for goals within thestrategic plan; this is set to NZDF operating planhorizons. The short-term horizon is one year, alignedto the financial year. The SMP addresses these

horizons by including them in the Get It and Set It steps.

2.1a(2). The SMP addresses factors and collects

and analyses data and information about the Navy’scapabilities and the Navy’s environment, sustainabilityand continuity in emergencies, and ability to executethe plan by:

● Conducting a SWOT analysis based on audits,independent reviews, benchmarking review andanalysis of Key Performance Indicators (KPIs), andsubject matter expertise that involves ‘SWOTing’ theNavy’s resources, structure, processes and systems,culture, and competencies. Performance isanalysed, including findings from NZBEF feedbackreports, and then combined with the SWOT resultsto identify and prioritise strategic challenges, goalsand strategies.

● Conducting a PEST analysis to identify strategicchallenges and to inform goals and strategies. Thisincludes risks and mitigation strategies from theNavy’s Risk Management Matrix (see Figure 6.2-1).


11

1 Benefits Management is in the early stages of

deployment.

Figure 2.1-2 Navy Strategic Management CPE Equivalent

Terms

● Monitoring business case or strategic assumptionsvia benefits management methodology.

● Prioritising goals and checking strategies againstavailable human and other resources in the Set Itand Move It steps.

2.1b Strategic Objectives

2.1b(1). The Navy’s key strategic objectives and

timetable for accomplishment (goals in Navy terms)

are listed in Table 2.1-1 in order of relative importance

(priority). The relative priority of the goals wasdetermined by the CN through the use of AnalyticalHierarchy Process (AHP) pair-wise comparisons.

2.1b(2). The goals address the Navy’s strategicchallenges by aligning them with the challenges, asdescribed in Table P2-1. The goals balance the short

and long-term challenges and opportunities and the

needs of key stakeholders by the inclusion of short,medium and long-term planning horizons in the Get Itand Set It steps in the SMP, and through the inclusion


12

Table 2.1-1 Strategic Goals and Timetable for Accomplishment

of a wide range of participants. Within the Get It andSet It steps, challenges and goals are divided betweenlonger-term shaping or ‘bottom line’ aspects (SCs 3 to6, and SGs 6 to 8), and more immediate or shorter-term ‘sustainability’ aspects (SCs 1 to 3, and SGs 1 to5) see also Figure 2.1-1 ‘Set It’. The grouping of goalsinto shaping and sustainability aspects was achievedas a consequence of the SMP and not by design.

2.2 Strategy Deployment

2.2a Action Plan Development

and Deployment

2.2a(1). Action plans (strategies in Navy terms) are

developed and deployed in the SMP Set It and MoveIt steps. Within the Set It step, the Senior Leadershipsets stretch goals and targets in a top-down approach,and then functional areas, supported by the Nx Officeand the Business Improvement Unit, develop strategiesand objectives ‘bottom-up’ to meet the goals. Goalmeasures can be re-negotiated if the initial ‘stretch’proves to be too demanding on resources.

Resources are allocated in the Move It step, byapplying strategic priorities within NZDF-mandatedfinancial processes in business plans (including capital,such as the Infrastructure Development Plan, andoperating, such as the Annual Plan), and by includingstrategic HR plans in the strategic plan. Furtherrefinement of resource demand and allocation occursthrough the development of detailed business andinvestment cases, and the application of projectmanagement processes. If NZDF decreases Navyresources to meet another NZDF priority, Navyreprioritises remaining resources by assessing therelative strategic priority of competing projects. If theconstraint is the human resource required to implementstrategies, provision can be made to employ short-termcontractors. For example, financial provision for thishas been made within the Defence SustainabilityInitiative (DSI) as a result of Navy identifying a needduring a previous strategic review.

Sustainment of key changes resulting from action

plans (strategies) is ensured through the use ofdetailed investment and business cases that includeconsideration of all impacts, risks, resource demands,costs and benefits of the strategy, or supportinginitiatives. Benefits management methodology, whichis in the early stages of being deployed, also ensuresthat changes are able to be integrated into business-as-usual.

2.2a(2). Modified action plans (strategies) are

deployed through the NLB directing changes basedon quarterly strategic reviews (or more frequently atmonthly NLB meetings if circumstances changebetween quarters), which then enter the Move It step.Directed changes are based on advice provided by thefunctional area head or programme managerresponsible for the execution of a strategy, as identifiedin the SP, and are then deployed through the businessas usual or project management processes.

2.2a(3). Key action plans (strategies) are identifiedin the SP 2006 - 2011, an extract of which is in Table2.2-1. Key changes to services have resulted fromthe Maritime Patrol Review 2001 and the MaritimeForces Review 2002, leading to an emphasis on borderand resource protection services, primarily through thePROTECTOR IPVs and OPVs. A significant additionalchange is the introduction of an amphibious operationscapability in the form of the MRV. The scale of thechange, both in terms of new operating procedures andconcepts, and the actual transition into service of sevennew ships of three different classes delivered in thespace of a year, make this Navy’s second mostsignificant strategic challenge. SG 2 in the strategic planwill be achieved through implementation of the Navy’slargest single action plan, the PROTECTOR TransitionPlan, which consists of over 1,000 tasks.

2.2a(4). Due to the significant investment in Navygrowing its own people, key human resource plans

are contained within the Navy’s strategic plan and aredriven by two HR goals (SG1 and SG3). The key human


13

Table 2.2-1 Excerpt from Navy Strategic Plan 2006 – 2011


resource plan that derives from a non-HR strategic goalis the personnel section of the PROTECTOR TransitionPlan, which includes all actions to man thePROTECTOR ships.

2.2a(5). KPIs (objectives) for tracking progress areincluded in the SP’s goals and strategies (see Table2.2-1 as an example). Alignment is reinforced and

key deployment areas are covered by including allstrategic goal and strategy objectives in DPMSscorecards, or in tailor-made strategic measurementsystems. For example, the PROTECTOR TransitionPlan progress is monitored by a specially developeddashboard that measures progress in all key areas,including progress towards outcomes, and whichprovides information on key contributors to variance,as well as information on risks and issues. As anotherexample, a programme measurement and managementsystem, which focuses on benefits and the attainmentof outcomes is being developed for the EngineeringSupport Project (ESP) in support of SG5. Stakeholdermeasurement occurs through the use of stakeholdermanagement plans in project management processes.

2.2b Performance Projection

Performance projections for each year over the five-year period of the strategic plan are contained in theplan (see Tables 2.1-1 & 2.2-1). Navy is in its earlystages of having a complete picture of current andprojected performance comparisons with other Navies.It has recognised this opportunity for improvement inSG6, strategy 6.5. Performance gaps are inherentlyaddressed by the strategies and goals in the SP.

14

3.1 Customer and Market Knowledge

3.1a(1). In 2004 the NLB addressed an NZBEF-identified OFI through an externally facilitated workshopto determine ‘who are Navy’s customers?’. Thisworkshop reached the conclusion that Navy deliversMMC through the maintenance and operation of NavalForces to the CDF, Navy’s key customer. CDF in turnprovides Military Forces for employment by the

3. CUSTOMER AND MARKET FOCUS

Government in support of state objectives, which mayinclude direct military action, support to multi agencies,or contribution to collective security arrangements. CDFrequires Navy to align its outputs to his customer groupsand ‘market’ segments, as contained in the NZDF SOIand Output Plan, (see Figure 3.1-1 and Table 3.1-1).

Figure 3.1-1 Navy Customer and Stakeholder Relationships

1 Inshore Patrol Craft are being replaced by OPVs and

IPVs under Project PROTECTOR.

15

Output Expense Outputs (if applicable) Force Elements Customer // Intermediary ECs

1: Military Policy ● Ministerial Correspondence HQ NZDF (NAVY) CDF // MoD, DepartmentDevelopment, and Parlimentary questions (Corporate Headquarters) Prime Minister & Cabinet N/ACoordination and Advice ● Strategic Management

of the Navy● Navy Policy● Parliamentary Questions.

2: Naval Combat Force 2. Naval Combat Force TE KAHA, TE MANA and CDF // MFAT, NZPolice,1-5

embarked Navy Helicopters DOC, MFish, NZCS, MNZ

3: Naval Support Forces 3.1. Replenishment Forces ENDEAVOUR CDF // MFAT, NZPolice,1-5

3.2. Amphibious Forces 1 x Multi-role Vessel DOC, MFish, NZCS, MNZand embarked Navy and AirForce Helicopters

4: Mine Countermeasures 4.1. MCM Forces MANAWANUI – KAHU CDF // MFAT, NZPolice,(MCM) and MCM 4.2. MCM Diving Forces Operational Diving Team DOC, MFish, NZCS, MNZ 1-5Diving Forces

5: Naval Patrol Forces 5.1. Offshore Patrol Forces 5 x Inshore Patrol Craft1 CDF // MFAT, NZPolice,5.2. Inshore Patrol Forces 2 x Offshore Patrol Vessels DOC, MFish, NZCS, MNZ 1-3

and embarked Navy Helicopters4 x Inshore Patrol Vessels

6: Military Hydrography, 6.1. Military Hydrography RESOLUTION CDF // NZPolice, MFish,and Hydrographic Data 6.2. Hydrographic Data DOC, LINZ, NZCS, MNZ,

1Collection and Processing Collection and Processing DTAfor LINZ for LINZ

Table 3.1-1 Summary of RNZN Output Expenses, Outputs, Force Elements, and Intermediaries.

Navy Output Expenses group force elements to provideindicative force element employment options. Theseoptions relate mainly to the size (quantity) of forceelements for applicable employment contexts (ECs).ECs are geographically grouped (see Figure 3.1-3)descriptions of representative and illustrative securityevents for which there is a likelihood that the Navy couldbe expected to contribute should they occur.

In the few instances where Navy units have externalcustomers other than CDF (Navy Hospital, BridgeSimulator, and the Joint Geospatial Support Facility(JGSF)), the approach to the identification of thesecustomers is the Customer Focused Systems Approachto Process Improvement (SAPI) tool (see Figure 1.1-3).

3.1a(2). CDF’s broad requirements, and the Whole-of-Government Outcomes he is contributing to, are advisedthrough the NZDF SOI and other documents such asNZDF Doctrine (see Figure 3.1-2 to 3.1-5). Changingcustomer priorities, expectations, and feedback arecommunicated by CDF Directives, and through a widerange of regular high level forums attended by CN; theChiefs Of Service Committee (COSC/ ELT meetings);Chiefs of Service and Minister (COSM meetings); Chiefsof Service – Informal (COSI meetings); and ExecutiveCapability Board (ECB) for capability developmentmatters.

Detailed requirements and feedback are providedthrough working relationships with CDF’s customers,such as the National Maritime Coordination Centre(NMCC) Working Group, which incorporatesrepresentatives from the multi-agencies in Figure

Defence Main Outcome

New Zealand Secure and Protected from ExternalThreats now and in the future.

Primary Mission of the NZDF

To secure New Zealand against external threat,to protect our sovereign interests, our Exclusive

Economic Zone, and be capable of takingaction to meet likely contingencies in our

strategic areas of interest.

Figure 3.1-2 NZDF Main Outcome and Mission.

Spectrum of Operations

Figure 3.1-4 NZDDP-D Spectrum of NZDF Operations (Chart from NZDDP-D 9 Fig.5.2)


16

Figure 3.1-3 EC Geographical Groupings

3.1-1. This ‘customer and market knowledge’ is criticalin enabling the Navy to match what it is capable ofdelivering from its MMC, with what is directed orrequested. Initiatives such as the ‘Whole-of-Government’ Ocean Survey 20/20 project provide otheravenues for interaction with multi-agencies, as does CNrepresenting NZDF on its Chief Executives Board, andCFO(N) representing NZDF on the Working Group. Postactivity reports, verbal debriefs of agency and Defencestaff, and close associations at the executive level alsoprovide Navy with CDF-customer feedback. The finalbeneficiaries of MMC are the people of New Zealand.Because Reputation Management is a key customerrequirement (see P1.b(2)) the Navy surveys the NZPublic for value and satisfaction (see Figure 7.2-2).

Feedback is analysed, and incorporated in the Get Itstep of the SMP, improved SOPs, or direct instructionfor action if deemed beneficial to Navy and its customer(see Figure 2.1-1).

3.1a(3). In the normal course of doing business Navy’sservices do not change significantly. However, whenbusiness direction changes do occur, such asintroduction of the PROTECTOR fleet, listening and


Figure 3.1-5 RNZN Outputs across Spectrum of Operations

17

learning methods are developed in consultation withthe relevant Intermediaries. For example thePROTECTOR Transition Plan includes tasks to developlistening and learning methods with associatedmeasures of service performance in relation to multi-agencies.

3.2 Customer Relationships and Satisfaction

3.2a. Customer Relationship Building

3.2a(1). Navy maintains, rather than builds, itsrelationship with CDF by keeping him well-informedthrough interaction at the COSC, and through providingwritten reports on performance against the Navy’sOutputs. Where CDF acquires new customers requiringMMC, Navy acts on his behalf by building relationships,for example, through the NMCC, to determine itsrequirements and to satisfy its expectations.

3.2a(2). CDF has full access to all information throughthe mechanisms described in 3.1a(2). Publicstakeholders are able to access information through themechanisms detailed in Table 3.2-1. Other governmentdepartments and ministers of the Crown follow


prescribed communication and information-seekingprotocols. These protocols support open, transparentgovernment. Customer and other stakeholder contactrequirements are deployed to all people and processesas appropriate via SOPs, Terms of Reference andthrough training.

3.2.a(3). As the Navy identifies CDF as its onlycustomer, and CDF is able to provide direct andimmediate feedback to CN, complaints managementis focused mostly on other stakeholders. Complaintsarising from Navy activities are brought to Navy’sattention via diverse channels, the most significant beingby or through (1) CDF, (2) another Service orIntermediary department or agency, and (3) a citizen orpublic interest group. At the ‘citizen’ level a complaintcould be made via a phone call, a private letter, anapproach to the media, or a Parliamentary Question.

Approaches to these three types of complaints are asfollows:

(1) CN initiates a response in the form of an internal orindependent Board of Inquiry, based on processesdefined in NZBR 23 and the Defence Act 1990, theresults of which are forwarded to CDF, andcorrective, disciplinary, or process improvementactions are taken;

(2) The appropriate Navy commander or manageraddresses the problem with an informal or formalinquiry, CN is informed of the results, and corrective,disciplinary, or process improvement actions aretaken, and feedback is provided to the complainant;

18

Parliamentary questions ● ●

Ministerial reports/briefing ● ●

Media releases ●

Official Information Act ●

Select committees ●

Operational planning forums ● ●

Correspondence ● ● ●

Navy Annual Report ● ●

Web (www.mil.nz) ● ●

Navy Today (periodical) ● ●

Public complaints process ●

24/7 phone access ● ●

Port Visits/ Ship open to visitors ●

Recruiting activities ●

Lobby/interest groups ● ● ●

Public meetings ● ● ●

Navy Week & Open days ● ●

Make

co

mp

lain

ts

Co

nd

uc

t

bu

sin

ess

Seek

in

form

ati

on

Mech

an

ism

s

IND

IRE

CT

DIR

EC

T

Table 3.2-1 Customer Access Mechanisms

(3) The Navy approach depends on the channel throughwhich a ‘citizen’ complaint is raised, and the natureof the complaint. A complaint received by a shipor shore-based functional unit (including NavalStaff), from any stakeholder other than CDF andNZDF personnel, related to employee behaviours,or negative consequences to Navy activities, issystematically recorded, reviewed, and actioned atthe unit level. Complaints are investigated andescalated to CN only if they cannot be handledlocally. In any event, if a complaint is received or anincident occurs that may result in adverse mediacomment, the receiving organisation is required toraise an ‘incident likely to result in public inquiry’notice to CN and relevant lower-level commander.An example of a local approach to complaints isthe SCINARS recording system in the DevonportNaval Base.

3.2a(4). The approach to building relationships andproviding ‘customer access’ that is aligned with businessneeds and direction is the same as the approach forkeeping listening and learning methods current. Referto 3.1a(3).

3.2b Customer Satisfaction Determination

3.2b(1). The business concepts of customersatisfaction, dissatisfaction, loyalty, and customergroups are not strictly appropriate to the customerrelationship with CDF and his staff. CDF satisfactionand dissatisfaction is received through the processesdescribed in 3.1a(2). Actionable information is capturedwithin OPRES, the key measurement system of MilitaryCapability. CDF satisfaction and dissatisfaction, inconjunction with other feedback, is directly linked toresults captured in OPRES, and translated into prioritiesfor improvement (See Figure 7.1-1).

When considering Navy’s Intermediaries, thedetermination of their satisfaction and dissatisfaction isbeing developed in parallel with the PROTECTORdelivery programme. Before the initiation of thePROTECTOR investment in an increased multi-agencyrole for Navy, ships of the Fleet regularly assistednumerous departments and agencies in their work. Suchoperations were traditionally conducted as a by-productof military capability when resources allowed.PROTECTOR, the NMCC, and NZDF’s Inter-Department/Agency Collaboration policies written underthe Whole-of-Government approach, when coupled withthe continuous improvement philosophy, are improvingthe way Navy responds to and seeks feedback from itsIntermediaries. The design of Navy DPMS Scorecards(see Item 4.1) has the ability to incorporate measuresthat report on performance outputs and levels ofsatisfaction perceived by these stakeholders.

19


The main beneficiaries of MMC are the people of NZ.CDF’s satisfaction with the Navy is partly predicatedon the public’s perceived value and satisfaction withthe Navy contribution. Navy measures these attributeswith a six-monthly omnibus survey (see Figure 7.2-1 &7.2-2).

3.2b(2). In the Navy context, as described above, thefollow up with the key customer and Intermediaries onthe quality of performance and transactionsautomatically occurs through the command chain, orthrough the inter-governmental channels described in3.1a(2).

3.2b(3). & 3.2b(4). As a Government Maritime Militaryservice the Navy does not operate in a competitivemarket and does not have competitors for serviceprovision, but does compete for funding allocation,reputation, commitment to the Joint Effect andcommitment to the Whole-of-Government approach.However, Navy does look outside itself, primarily to theRNZAF and Army but also to other navies, to determineits relative performance standards in delivering itsunique services (see 4.1a(2) on comparisons andbenchmarks).

4.1 Measurement and Analysis of

Organisational Performance

4.1a Performance Measurement

4.1a(1). The Navy selects, collects, aligns and

integrates data and information through the DefencePerformance Measurement System (DPMS) (seeFigures 4.1-1, 4.1-2, 6.1-1, 6.2-1, & Table 6.1-1). TheDPMS describes the Navy as a system involving inputs,processes, and outputs and is a hierarchy of integratedand aligned performance scorecards that uses SAP-Strategic Enterprise Management software (see Figure4.1-1). The approach is similar to the Kaplan and Norton‘Balanced Scorecard’ for translating corporate strategyinto action, but aligns inputs, through the value creationchain, to outputs and outcomes. The Navy has adopteda Vision Achievement Model (the Mission-Visionparadigm) that states that the organisational vision isattained through improving mission delivery.Subsequently, day-to-day and Strategic managementare both supported by the DPMS. Data is collectedautomatically or manually by data-owners. The Navyhas three main levels of performance measurementbroadly aligned with the military levels of War:1

● Tactical. Daily management of processes, systems,equipments and activities within ships. Reported bya combination of routine capability reports(MONICAR), exception, and a monthly report ofproceedings. In addition there is a large number of

4. MEASUREMENT, ANALYSIS AND KNOWLEDGE MANAGEMENT

formal ‘returns’ that are submitted on a periodic basis(see NZBR 4 – List of Returns).

● Operational. Management information relating toactivity and unit output achievement in functionalareas ashore – the Functional Level Scorecards.

● Strategic. Corporate information that includes abalance between ongoing organisationalmanagement and delivery of outputs and theachievement of corporate goals, strategies, andaction plans – the Navy Corporate Scorecard.

Although the DPMS has an implemented softwaresolution (SAP-SEM), aspects of the DPMS areintentionally held in different systems due to thepresence of military classified information. In particular,the key service of military capability (comprising ForceStructure and Preparedness, see Figure P1-1) ismeasured using OPRES. Within OPRES, theReadiness component of Preparedness is currentlymeasured using WARLOC, (this is planned to bereplaced by MONICAR by 30 June 2006). Progressrelative to Strategic Objectives2 and Action Plans3 iseffected through the monitoring and analysis of dataand information in the DPMS against the Strategic Plan,and through bespoke systems such as thePROTECTOR dashboard.

The Navy’s organisational performance measures

are captured in the 25 key measurement areas of theseven perspectives of the corporate scorecard withinthe DPMS (see Figure 4.1-2). For key strategic

Figure 4.1-1 Diagram of Navy’s DPMS Scorecard Structure showing degrees of completeness

20

2 Strategic Objectives are termed ‘Strategic Goals’ in

RNZN (See Category 2)3 Action Plans are termed ‘Strategies’ in RNZN (See

Category 2)

1 Military levels of War are frequently used within Navy

to describe levels of management. They differ from

traditional business management levels and flow, from

top to bottom, of Strategic-Operational-Tactical.

management measures see Category 2. The Navy’skey organisational performance measues are:

● Military Capability (Fig 7.1-1). Military capability isthe power to achieve a desired operational effect ina selected environment and to sustain that effect fora designated period. There are two main elementsof Military Capability: Force Structure andPreparedness (see Figure P1-1). Force Structure

is the quantity element of military capability andincludes personnel and equipment; Preparedness

is the qualitative element of military capability. Theability of Navy force elements to be employed onmilitary tasks is a function of the Preparedness statein which they are held. That is, force elements mustbe held at a level of capability from which they canbe raised to an operational status within a specifiedtime, then deployed for the conduct of a particulartype of military task and be sustained for a specifiedperiod while engaged in that task. There are fouringredients of Preparedness: readiness, combatviability, deployability, and sustainability. Militarycapability, in general and as measured by OPRES,is classified and unavailable to the Public. However,personnel-related measures (Force Structurecomponent) are releasable and are at Category 7.1,and can be summarised as:● Actual paid Strength (Fig 7.1-9). Actual paid

strength will be replaced by ‘staffing to the MasterPersonnel Establishment’ in late 2006 aftercompletion of a SP Strategy.

● % Sea Billets Filled (Fig 7.1-10) and % Shore

Billets Filled (Fig 7.1-11). These measurementsprovide an indication of the Navy’s ability todeliver the personnel-quantity dimension of MMC.

● Sea-days (Fig 7.1-2 to Fig 7.1-8). Sea days are atraditional output-based measurement of Navy’sability to effectively employ the assets that the CDFhas purchased on behalf of the Government ofNew Zealand (Owners). The period of time that aship spends at sea is a balance of training andoperations against the need to provide quality of lifeand sea/shore balance for Navy military personnel,as well as routine Platform maintenance andcapability upgrades. Targets are set annually on aPlatform basis as part of the Defence Budgeting

System, however unexpected occurrences duringthe year can have a significant effect on final delivery(eg. Major equipment defects and Operationaldeployment in response to CDF direction).

● Mission Availability Days. With the imminentintroduction of the PROTECTOR vessels, and thesubsequent expected increase in multi-agencysupport requirements, a new metric has beendeveloped that measures the number of days aforce element is available for operations. Thismeasure will be implemented for the 2006/2007Navy Financial Year1, and subsequently does notfeature in Category 7 results.

● Navy Budget Output Variance (Fig 7.3-1). Navyis required by CDF to maintain a high-level of fiscalresponsibility, and end the year within +/- 1% of theallocated budget.

● Public Value (Fig 7.2-1) and Public Satisfaction

(Fig 7.2-2). Navy surveys the New Zealand publicon a six monthly basis as a proxy for CDF customersatisfaction and to measure reputation management.

● CPE External Evaluation (Fig 7.5-1). CPE externalevaluation provides a valuable measurement forNavy to measure its progress towards visionachievement and being ‘organisationally excellent’(see P.1a(2) and 1.1a(1)).

Data and information from the DPMS, including KeyOrganisational Performance Measures, are used by theNLB to support organisational decision-making

strategy development and innovation. The NLBreviews, by exception, all DPMS measures on a monthlybasis. The Corporate Scorecard includes data andinformation for determining operational performanceand measures those activities for which CN isresponsible.

Shore-based support activities are also monitored andaligned using the DPMS. The senior support functionalleaders meet weekly for co-ordination and planning, andmonthly with the DCN (forming the Naval SupportCommand Leadership Board). The scorecards used atthis level can be viewed at the corporate level and


1 Commences 1 July 2006.

21

Figure 4.1-2 Navy Corporate Scorecard Key Measurement Areas (see DPMS for measures)

vice-versa. (Navy has an open viewing policy forunclassified scorecard data.)

MCC reviews force element performance on a weeklybasis, and this is normally conducted in concert with aVideo Tele-conference with Naval Support CommandHeads of Department. These weekly reviews arecurrently influenced by personnel deficiencies,equipment defects, training progress and forecastprogrammes. The imminent introduction of MONICARfor measuring readiness aligns these issues with navalmilitary tasks, providing a link from causes to outputs.

For discrete strategic programmes or large-scaleprojects tailor-made measurement systems aredeveloped and used for the duration of the programmeor project. Examples include the PROTECTORTransition Plan dashboad and outcomes maps, and theEngineering Support Project (ESP). All data andinformation captured through all the performancemeasurement systems provides critical input todecision-making, and enables management by fact atall levels of the organisation.

4.1a(2). Effective Use of Comparative Data. TheNavy’s primary comparison organisatons are the Armyand RNZAF. They use similar processes, havecomparable objectives, and use the same NZDFcorporate software e.g. SAP, ATLAS and, soon, JEMSas well as measurement systems (SAP-SEM, OPRES,OAtS etc). Other comparison organisations are selectedon the basis of similar process, similar context,accessibility to the data, and measurement credibility,eg. the State Services Commission for retention ratesof Public Servants, and RAN for ANZAC Classfrigate operational performance data (eg. Gunneryperformance results). Where available, comparativedata is used in setting both short and longer-termtargets, as well as identifying opportunities forimprovement (see P2.a(3)).

4.1a(3). Keeping the Performance Measurement

System Current. At the highest level, the SMP setsthe direction from which key targets and any newmeasures emerge (see Category 2). These newmeasures and targets are incorporated into the DPMS.At the working level, the measurement system managercontinually updates and improves the measures to meetmanagement’s changing needs. The Director NavalExcellence (DNx) ensures that the DPMS remainscurrent with business needs and direction. DNx sits onthe NLB and Naval Support Command LeadershipBoard, and is responsible for the SMP. This wideorganisational coverage ensures visibility acrossfunctional silos of changing business needs anddirection.

4.1b Performance Analysis and Review

4.1b(1). Review of strategic organisational

performance occurs quarterly at NLB level. Operationalperformance and capability is monitored by the NLB ona monthly basis. In a similar manner, the heads of thefunctional units in the Naval Support Command (CaptainFleet Personnel and Training, Captain Fleet Support,and the Base Commander) review performance at anoperational level at monthly intervals using theirscorecards. The review of operational performance offorce elements is a continual process conducted byMCC.

Data is reviewed and assessed (analysed) by dataowners and subject matter experts (eg. Fleet PersonnelCorporate Services Analyst), using systems-thinkingapproaches, root cause analysis, statistical modelling,focus groups, and other tools. Senior Leaders are ableto ‘Append Comments’ to the measurement report inDPMS to expand on or confirm the assessment. Withinthe Naval Staff (Corporate Headquarters), each DPMSPerspective (see Figure 4.1-2) is ‘owned’ by a seniorofficer who overseas the corporate level analysis andreporting. These perspective ‘owners’ are responsiblefor providing the expert analysis at the NLB.

Allied to the analysis of data is the Risk Register whichmonitors the effectiveness of mitigation strategiesrelative to the associated risk. A visual ‘Risk Matrix’ isdisplayed to the NLB along with the DPMS reportshighlighting key areas of concern. The NZDF hasadopted the Navy’s risk management model as thedefence standard and in June 2005 a Deloitteconsultant, after reviewing the Navy’s system duringan independent audit, described it as ‘world class’ (seeFigure 6.2-1). Performance reviews are used to informdecisions on reprioritisation of resources, identificationof areas to focus improvement initiatives, as inputs tothe SMP, and to address organisational challenges.

The DPMS reports on the capability and flexibility ofthe Navy as an entire system, as well as its key parts.If, for example, an area is under-staffed its ability torespond to sudden change is compromised. Theinformation provided by the DPMS enables theappropriate response to be made to unexpectedchanges.

4.1b(2). Information from the DPMS is used in the SMP,SWOT and PEST analyses, and is then prioritised usingdecision support tools. Recently, Navy has startedexperimenting with the Analytical Hierarchy Process tohelp with analyses and ongoing investigation into theutility of this tool is being conducted by DTA. At morefrequent intervals the NLB initiates improvements as aresult of problems and risks highlighted in the monthlyreports. The whole process of measurement, analysisand review, creates a climate throughout theorganisation that reinforces accountability and


22

encourages both innovation and the effective use ofresources.

Project and benefits management1 processes are usedto deploy new priorities (see Figure 2.1-1).

The level of dialogue and written communication withsuppliers and partners depends upon their importanceto the Navy. Major supply contracts include clauses onconsultation and joint management (see Figure 1.1-1as an example); conflicts of interest, or requirementsfor change are communicated at regular meetings.Minor suppliers/partners are informed of systemchanges by email, letter, circular or telephone.

4.2 Information and Knowledge Management

4.2a Data and Information Availability

4.2a(1). Data and information are made available by:the NZDF intranet, email, written correspondence,formal military signals, magazines, fleet memorandums,Navy orders, the Filetrak file tracking system, face-to-face meetings, unit briefings, talking walk-arounds, andvideo conferences. The intended audience and theclassification and sensitivity of the material determinethe most appropriate medium (see DFO 51(1)).

Increasing use is being made of communicationsystems such as e-mail and the Internet for Navyemployees to keep in contact with suppliers andpartners. Satellites have allowed data exchangebetween ship/shore, and the ‘Virtual Private Network’enables employees to connect with the NZDF networkfrom anywhere in the world. Table 4.2-1 is an in-exhaustive list of information bearers and mechanisms.

The availability and distribution of operational (military)information is undertaken using dedicated informationnetworks. These include a secure classified network(SWAN) and a Top Secret network. Joint project dataand information integration occurs between VTF andNavy for the exchange of work specifications and projectmanagement which provides facilitated access to Navyengineering and logistic information. There is also ashared Enterprise Resource Planning system. Furtheraccess to data and information is provided through SAP.

Navy has a publication department responsible for themanagement and distribution of electronic and hardcopy publications. Ships that do not have access to theLAN are forwarded data on CD to bring their information-base up to date. All books and manuals have a sponsoror originator to ensure each one is kept current.Increasing use is being made of knowledgemanagement software, and the NZDF has recentlymigrated from Windows Team Services to MicrosoftSharepoint Collaboration tools. Navy is a contributor tothe NZDF knowledge management project that is likely


1 Benefits management is in the early stages of

deployment.

23

Acronym Information Bearer Purpose

MMS Military Message System Military Signals- Satellite- Radio (HF/ VHF/ UHF)

MONICAR Satellite/Intranet Force Element mission requirements.

AMPS/ FMMS Satellite/Intranet Force Element maintenance requirements.

SEE-MAIL Intranet/Internet Capability to send RESTRICTED information via emailto multi-agencies

DEMS Defence Email System Main business communication system.Includes external email.

CITRIX Commercial thin-client Access to corporate, server-based applications

EARLLS Electronic Activity Data Base of improvement initiatives, and lessonsReporting and Lessons learntLearned System

RAS Remote Access Server Provides employees with external access to DIXS

VPN Virtual Private Network from the internet.

SWAN Secure Wide Area Network Secret computer network.

Classified Classified Top-secret computer network.

DIXS Defence Information Exchange System NZDF corporate intranet.

TADIL Tactical Data Information Link Military tactical data link (Ship-Shore/Ship-Ship)(RNZN current mainstream version is Link11 and capable of operating with allies).

CENTRIX Collaboration ‘Five eyes’ military classified network.

GCCS-M Global Command and World-wide military common operating pictureControl System – Maritime (COP) for sharing the Recognised Maritime Picture

(RMP) with allies and within Defence.

Table 4.2-1 Electronic Systems for Internal Communication

to implement a Microsoft Windows Portal Serversolution.

Collaboration between Sea/ Shore is achieved using aLotus / Domino solution within SWAN (NZ-NZ) andCENTRIX (Allied); this approach was a direct result ofmajor AUSCANNZUKUS trials demonstrations (ie.CWID, Trident Warrior etc.) See Table 1.1-4.

4.2a(2). An NZDF organisation (Directorate ofCommunications Information Systems and Strategy –DCISS) co-ordinates the development and deploymentof corporate applications to ensure they are appropriatelytested and conform to the security requirement of thenetworks as described in the Application ApprovalProcess (NZDF 2880/5/1). Intra-Service and Inter-Service sponsors are closely involved with the selectionand evaluation of corporate applications.

Data Reliability. The two main processes that areassociated with ensuring hardware and softwarereliability are the Computer Purchase ApplicationProcess and Software Change Management Proposal.In addition, all hardware and software on ships isrequired to go through the Configuration ChangeProcess (CCP - see Category 6). Hardware or softwareprojects follow documented processes coveringrequirements management, acquisition process, in-house development, certification and accreditation,standards, testing, independent verification andvalidation, and through life support and resources.

The quality of military software and hardware conformsto more rigorous military specifications (MILSPECs), asit is required to have exceptional reliability andinteroperability with allies. ANZAC frigate software andhardware is upgraded and kept aligned with theAustralian ANZAC ships. Each of these upgradesundergoes formal in-house functionality and operabilitytesting over and above what would be required forcorporate software. Software test engineers review,oversee and witness the testing at the developer’sfactory (see NZBR 7).

Data Security. Navy relies on NZDF and Allied (NATO)systems for security of its corporate systems and has aseparate security organisation for military security.Corporate systems are protected from outside influenceby using actively managed firewalls. Internally, a systemof passwords and authorisations is used under themanagement of the Joint Information System Agency(JISA).

User-friendliness. Corporate systems use standardcommercial software using a Windows environment.Other commercial software is available for somespecialised applications. Some software developmentis undertaken for specialist applications. Trainingcourses are available for most standard softwareapplications.

4.2a(3). The NZDF has a ‘Concept of Operations’(CONOPS) to safeguard its networks. It outlines thestrategy for the NZDF in the case of attack, disaster ordegradation. Protection is dispersement of servers, withresources spread between the various defence sitessuch as Devonport and Porirua. Data back-ups areautomatically run each day. These measures maintaindata availability (or enable recovery) for corporatesystems during local emergencies. Systems belowcorporate level are also stored on the main servers andhave the same protection. Key functions such aspersonnel management and data warehousing haveback-up paper systems for short-term management.Although these systems entail a heavy manual effort,they enable the processes to be maintained whilstdisaster recovery procedures are undertaken.

4.2a(4). Keeping Software and Hardware Current.The upgrade of hardware and software is driven by theneed to satisfy user requirements, to maintaininteroperability with partners and other stakeholders,and the need to overcome obsolescence. Theavailability of upgraded software and hardware is eithernotified by central NZDF technology organisations, aswell as being identified from professional publications,at professional forums, or from investigations on theInternet. The relatively rapid obsolescence of softwareand hardware drives a continuous replacement plan thatenables ongoing alignment with changing businessrequirements. In addition, there is a specific role withinNavy (Director of Naval Information Systems) to ensurethat corporate information systems remain appropriatefor current and future needs.

Most new requirements for military application ofsoftware and hardware result from the need to operatewith ships of allied navies. Navy participates in nationaland international forums that identify new software andhardware requirements necessary for communicationand interoperability (see Table 1.1-4). Currency ofInformation Systems, both business and military, isimportant for Navy to maintain interoperability withpartners and allies, and is an area where Navy has ahigh level of experience and international influence. InFY 2004/2005 Navy expended $2.2 million on non-military hardware and software and $15 million onmilitary C4I Systems.

4.2b Organisational Knowledge Management

Collection and transfer of employee knowledge. Jobrotation, ongoing professional development and the useof handover notes ensure the spread of corporateknowledge. Hand-over periods vary with skill level.Civilians fill specific positions to provide continuity ofspecialised knowledge. In addition, meetings, forums(eg. Branch Forums), briefings and debriefings contributeto knowledge transfer. The EARLLS application is in wideuse. Navy is also a key contributor to the NZDFknowledge management project (see 4.2a(1)).


24

Transfer of relevant knowledge. Customers, suppliersand partners interact with Navy as in Table 4.2-2.

Rapid identification, sharing and implementing of

best practices. DPMS has enabled direct comparisonsbuilt into their measurement systems, providingencouragement to seek out the reasons for and waysof achieving better performance, elsewhere.

The identification of best practice is facilitated by:

● Regular attendance at international forums● NZBEF knowledge hours● Postgraduate and other tertiary education● Employment of consultant experts● Navy-to-Navy relationships● NATO publications and doctrine● AUSCANNZUKUS, ABCANZ, TTCP etc● Internal CPE evaluations (in abeyance since 2003)● External CPE evaluations● Internal and External Audits

In addition to the external sharing of best practice listedin Table 4.2-2 and knowledge transfer mechanismsnoted above, internal sharing is facilitated by:

● NZBR / DFO● Annual Innovation Expo● ‘Navy Today’ articles celebrating success stories● Job-rotation system● Continuous career training● Intranet / Sharepoint

The implementation of best practice is facilitated by theprocesses described in Items 2.2, 6.1 and 6.2.

4.2c Data, Information, and Knowledge

Quality

The requirement for accuracy of data is more stringentin certain areas than in others, such as personnel andengineering. For example, in pay calculations andaccounts management, accuracy is ensured byindependent checking and certification. Accuracy incorrespondence is achieved by a ‘final approval andsignature process’. Emails are not checked for accuracyexcept by the originator. Operationally, a number ofspecialist trades are given training in error avoidancewhen handling and compiling data.

Integrity and Reliability is ensured by restricting to aminimum the number of personnel who can input dataand information. In DPMS, access to the Finance,Material Management and HR areas is controlled usingsystem ‘permissions’. In other systems such as DIXS,individual passwords are required. In manuals wheremany of the processes are recorded, the sponsors areresponsible for the accuracy of the contents. InformationSystems are required to conform to standards basedon their criticality to mission (see NZBR 7).

Timeliness is ensured by significant investment inInformation Technology and the use of Defencecommunications facilities. To ensure timeliness of dataand information to deployed force elements Navyinvests in leasing Satellites as well as ‘smart’ IT formaximising available bandwidth. Backup systemsinclude world-wide networks of radio stations for militarymessaging.

Although an increasing reliance is being placed on emailand commercial IT for information transfer, Navy retainsmilitary signals and these are still widely used for thetransfer of important information. To ensure that signal

25


Stakeholder Type of Engagement Knowledge Transfer Mechanism

Customers CDF – Chiefs-of-Service Committee Direct discussion between CDF and the Service ChiefsOther Government Departments Participation in the National Maritime Co-ordination

Centre

Suppliers Business-to-business systems Daily transactions and operator exchanges

Contractor discussions Larger contracts have regular information-exchangemeetings

Defence Industry seminars and Suppliers introduce new opportunitiesproduct demonstrations

Supplier representatives on Base Direct exchanges at operating level

Partners Army and Air Force Joint administrative, training and operational activities

Dockyard Manager Joint planning and collaborative repair activities

Other navies and US Coast Guard International Information Exchange Agreements

Business NZBEF Knowledge hours, direct liaison

Excellence Massey University and AUT Business case study material

Community of Fire Service Regular liaison

Interest NZ Police Secondments, Nx Tools Training

ACC Regular liaison and data exchange

Table 4.2-2 Stakeholder Knowledge Transfer Mechanisms

26


information is delivered to the recipient on time,performance standards are in place. These are:

● Routine, delivery within 24 hours● Priority, delivery within one to six hours● Immediate, delivery within 30 minutes to 1 hour, and● Flash, delivery within 10 minutes

Security of operational data is managed undercomprehensive security rules and regulations and isbased on individual security clearances to differentlevels and a ‘need-to-know’ policy (see DFO 51 Series).Security of personal and sensitive business informationis maintained by limiting access and by physical securitymeasures. Applications for use as corporate systemsundergo rigorous Vulnerability Assessment, and forapplications on the SWAN Network and higher,certification and accreditation of security againstinternational Military Standards. The ‘SEEMAIL’ systemprovides an encrypted email transfer facility betweenthe Navy and multi-agencies at the RESTRICTED levelof classification, and SWAN provides email connectivitybetween the Navy and Australian Defence Force up toSECRET.

Personnel are unable to connect to the Internet fromNavy Intranet computers, but there is the facility foremail. This requires that the user insert the word‘UNCLASSIFIED’ in the subject line of the email beforeit can be released. In any event, all emails that are sentexternally from Navy are automatically scanned forclassified or sensitive information and returned to senderif they do not meet release requirements. Processesare in place to monitor these security aspects.

Confidentiality is further ensured by the use of variousprivacy markings, including Medical-in-Confidence,Staff-in-Confidence, and Commercial-in-Confidence.Additionally, special encryption codes for signalmessages are used where knowledge of the contentcould cause embarrassment to a service member.

5.1 Work Systems

In military organisations high performance work is notonly the effective implementation of operational plans,but also the ability to rapidly and effectively implementchanges in capability (or even to quickly develop newcapability) in support of changing governmentalrequirements. To do this Navy requires to have the RightPerson, in the Right place, at the Right time (R3), andat the Right cost (R4).

The basic elements of Human Resource Management(HRM) that lead to high performance are:

● The quality of the Navy’s people● The quality of the Navy’s training● The Navy’s culture and environment● The Command Chain (a legislated rank structure –

military rank defines the hierarchy representingthe Command)

● Three core Branches (Operations, Technical andSupport - the Branches each contain a number ofsub-trades and specialisations (see P1.a(3)).

The Navy maintains a Master Personnel Establishment(MPE) that lists all positions by rank, trade, skills andpre-requisite qualifications required to optimally operate,maintain, and support each unit. Military personnel aremanaged by career managers through the IntegratedPersonnel Career Channel – IPCC (Figure 6.1-2) that

5. HUMAN RESOURCE FOCUS

rotates personnel between sea and shore posts, enablinggrowth in experience and competencies. Work systemsare integrated with all elements of the IPCC (that is,recruiting, induction and training, career management,retention and resettlement see Figure 5.1-1).

5.1a. Organisation and Management of Work

5.1a(1). Individuals are provided with a combination ofmilitary and trade skills (see Figure 5.1-2). In ships, aWatch and Station Bill organises cross functional teamsfor multiple tasking and work across trade boundaries,which assists with the maintenance of a culture ofcooperation, initiative, innovation, and flexibility.

At the operational level on board ships, work, trainingexercises and directed activities are systematically, butflexibly, managed day-to-day through the PracticalPlanning Process interacting within the Whole ShipOrganisation model (NZBR 9). This process providesthe ability to rapidly meet emerging operationalrequirements, such as:

● Persian Gulf interdictory duties, or other operationaltaskings such as peace-keeping

● Antarctic or other directed patrols● Coastal patrols in support of other government

agencies● Manning prisons or other key industries during

disputes

Figure 5.1-1 Navy Integrated Work Design and Improvement Process

27

● Disaster and humanitarian relief● Search and Rescue and other support for NZ Police

and MNZ● Ceremonial and/or diplomatic support● Unplanned maintenance and repairs

Empowerment within Navy is defined as givingindividuals the opportunity to make a contribution, andis provided through training programmes, individualreadiness assessments, and job handovers. Thepurpose of the Navy-wide leadership model (SituationalLeadership) is to empower individual Sailors by aligningleadership styles with contexts (Figure 1.1-4).

Special cross-functional and cross-rank teams providefor empowerment, innovation, initiative and cooperation.For example, CN utilises a senior rating Sailors’Leadership Team (SLT), unique among allied navies,to gather information from the ‘coalface’ on Navy-wideissues that have a significant impact on personnel. CNinstructs the SLT to investigate and provide options.Under CN’s direction the SLT has providedpresentations on his behalf to the Prime Minister, CDF,and senior leaders of external organisations (eg. theCN of the RAN, RMN, and RSN), with a view todeploying the concept internationally.

Specialist project teams develop and implementinnovations and other initiatives and strategies, andprovide for organisational agility. Recent examplesinclude Projects GAP, ESP, RENT, PARIS, ROME, andthe PROTECTOR Transition Plan.

5.1a(2). Navy’s work system capitalises on the diverseideas and thinking of its people through cross-functionalteams (eg. the SLT). Reports of Proceedings, lessonslearned returns and post-activity debriefs/reports, the4-India Chit process, the Defence Suggestion Scheme,and involving the Runanga O Te Iwi Heramana (thecommittee of the Navy’s Marae, noting that the Maraebelongs to all sailors) provide means for gathering thediverse ideas and thinking of employees. These arecapitalised on through the development of action plans,and the use of project and cross-functional teams,

supported by tools such as the set of Nx Tools (seeFigure 1.1-2).

Ideas from the wider community are incorporatedthrough the integration of the RNZNVR and the diversecommunity of professionals that it draws from, theemployment of an EEO Co-ordinator, two ResidentNaval Officers (RNOs) and a network of Honorary NavalOfficers (HNOs) who are resident in communities andorganisations throughout NZ. The Navy’s recruiters, alsoresident throughout NZ’s regions, continuously interactwith communities, and are able to adjust strategieslocally to capitalise on community diversity.

The Navy has a Bi-cultural Partnership Policy and aCultural Governance Board that guides Navy and Maoritowards achieving a bi-cultural partnership within a multi-cultural context, that respects both Navy and Maoricultural interests, and enables the Navy to capitaliseon diverse cultural thinking and ideas, withoutcompromising critical elements of the Navy’s coreculture. This further aligns the Navy’s work system withits culture and mission.

5.1a(3). Skill sharing is achieved through the practiceof regular job-rotations, normally in a two-year cycle.This includes rotating personnel with recent operationalexperience into training roles. As a result, trainingprogrammes are updated with current techniques.Further skill sharing and communication occurs as aresult of multi-tasking, especially on board naval vessels(see Figure 5.1-2), and through meetings such asstrategic planning and other senior leader meetings.

Project and cross-functional teams, and the system ofJoint NZDF positions (within NZ and overseas) alsoprovide for the capture and sharing of skills. The NZDFIntranet is extensively used to communicate and shareskills, along with the mechanisms described in Table4.2-1 and Table 5.1-2. The PDB shares and developsskills through mentoring.

5.1b Employee Learning and Motivation

Employee Performance Management System. TheNavy employs four foundational performancemanagement systems to provide feedback to itsemployee groups (as listed in Table 5.1-3), supportedby a range of other mechanisms including general 360degree feedback and 360 degree Emotional Intelligence(EI) feedback. Each system reviews performance andincorporates a range of assessment criteria, fromcompetencies through to behaviours. They are tied tojob requirements and tasks by matching individualcompetencies to the MPE.

Rewards and Incentives for High Performance.

Remuneration for all personnel is generally set on a tri-Service, NZDF-wide basis, however Navy does havesome discretion to target groups of employees. In


President of Mess

Chief PettyOfficer Marine

TechnicianAction StationDamage

Control HQ

Divisional CPO

Cruising Engineer Officerof the Watch

Special SeaDutyman

Cable Party

Part of ShipRefrigeration

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Figure 5.1-2 A typical Multi-tasking of an Individual

on a Naval Vessel

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28

addition, each Service administers both common (ie.across all Services) and unique non-financial rewardsystems. Table 5.1-4 lists some rewards and incentivesused to compensate and recognise high performance(see also Table 1.1-5). High performance from civilianemployees is rewarded through a pay progressionsystem wherein a staff member may progress throughthe levels for the salary band of their position on the

basis of an annual assessment against the requiredlevels of proficiency. Military promotion leads toincreased remuneration and extra privileges in somecases since the promotion system is based largely onmerit.

Hiring and Career Progression

5.1c(1). Characteristics and skills required of potentialuniformed recruits are identified by the process at Figure6.1-2. The full range of competencies has beenidentified for all positions in ships through a recentproject. Generally, uniformed personnel are not recruitedfor existing skill, but for aptitude and potential (skilledlateral recruits to fill specific posts being the mainexception). Navy psychologists develop segmentedrecruiting competency inventories to meet changingrequirements.For civilian staff, required skills and competencies areadvertised (as identified in job descriptions and termsof reference) and applicants are matched.

5.1c(2). Recruiting for uniformed personnel isconducted through five regional recruiting offices and amobile Naval Display Unit. All candidates go to a Paper

29


Financial Non Financial

‘Sailor of the Year’ PDB recognition scheme

Extra Skill Factors Acting rank

Special Job Value Commendations presentedFactor formally by senior leaders -

Commanding Officers,NZDF Suggestion MCC, DCN, CN, CDFScheme

Nx Award Scheme Good Conduct Badges

Ex gratia payments Medals and Honours

CFR, Promotions,Postings*

*Non-financial per se, but have financial implicationsCFR means Commissioned From the Ranks

Table 5.1-4 Recognition, Rewards and Incentives

Media Description Media Description

Table 5.1-2 Communication Media to Promote Intra-Navy Knowledge Sharing

CLE CNS Advisory Committee Signal System Formal naval message system

NLB Executive Steering Committee Newsletters Inter branch, NCO Newsletter to families

HODs Heads of Department meetings Electronic knowledge In-house LAN (DIXS) & e-mail, www accessPlatform, Internet

NZDF Web Page Lessons Learned website Branch Conferences 2-way discussions within Brancheson matters of interest

In Sync Monthly newsletter in the Naval Divisional Meetings 2-way discussions within divisions on mattersSupport Command of interest

Navy Today Monthly news magazine COs’ Conferences Exchange of views amongst UnitCommanding Officers

‘With All Navy-wide CN advice of an Ship Internal Longcast, Shortcast, Daily Orders, Face to faceDespatch’ immediate, important or urgent meetings & briefings, Main Broadcast System

nature

Orders and Full electronic access to most INMARSAT Ship/shore/ship telephone for person to personManuals regulations and procedures

Temporary Short-notice changes to routines Correspondence Access to all formal communication filesMemoranda & and procedures. RegistryMinutes Conduct of daily business

Intranet Internal net used by all ‘Clear Lower Deck’ CO share knowledge face to face with Shipsshore-based personnel Companies

Personal Segment Scheme How

Officers & Warrant Officers Report Form Assessments of Leadership & Management behaviourOfficers (MD68-NZDF-wide)

Junior Officers Under Junior Officers Report Form Assessments of Academic & Leadership potentialTraining (RNZN41)

Ratings Performance and Career Assessments of Technical CompetenciesReview (PCR)

Civilians Civilian Staff Performance Achievements of Performance GoalsManagement Scheme

Table 5.1-3: Performance Management Scheme

Selection Board as an initial filter from which Offers ofService are made to successful applicants. Officercandidates who meet the initial screening requirementsattend the Final Officer Selection Board (acomprehensive ‘assessment centre’ process).

Some lateral recruiting occurs to acquire specialist skills(for example, doctors, educators, organisationalpsychologists, construction engineers, lawyers andchaplains) or to meet middle seniority military skillshortfalls (for example, fully trained personnel fromforeign navies, or re-entry of ex-RNZN personnel forsecond careers). A new Lateral Recruiting Cell has beenestablished to focus more emphasis on this avenue ofpersonnel replenishment.

Civilian staff are recruited laterally and internally usingJob Descriptions/Person Specifications and selectionis against these requirements via a selection panel.

Retention. The Navy retains new employees bycreating a sense of belonging and commitment throughan induction process that fosters a sense of identity,esprit de corps, commitment to the Navy’s Vision andCore Values, and a career plan that includes skilltraining, promotion and overseas travel. In addition theDivisional System provides for the care and well-beingof inductees, and is introduced from day one. Thissystem continues to support personnel throughout theircareers.

5.1c(3). At the highest level, succession is planned asdescribed in 1.1a(3). At other levels the Navy’ssuccession requirements are managed through thecareer management system that is tasked with getting

the Right person in the Right place at the Right time atthe Right cost (R4). Individual career managers maintainsuccession plans specific to branches and trades.Civilian succession tends to occur through lateralrecruitment to fill vacancies that arise. The Civil StaffPerformance Management System does howeverinclude career and personal development planningprocesses and tools to support the growing civiliancomponent of the RNZN, and thus the opportunities toadvance to positions of greater responsibility as part ofthe Navy’s integrated workforce are also growing (seeTable 5.1-5 & Figures 7.5-17 & 7.5-18).

5.2 Employee Learning and Motivation

5.2a. Employee Education, Training, and

Development.

Uniformed personnel are recruited for their potential,therefore education and training is key to theachievement of Navy’s mission. At any time, between20 – 25% of uniformed personnel are undergoingtraining (see Figure 7.5-19). The Naval TrainingOrganisation is registered as a Government TrainingEstablishment (GTE). Four groups provide specialistskills training to respective branches, whilst theLeadership Group focuses on military knowledge, skillsand attitudes. A designated group also introduces newtechnologies into training processes, and managesquality assurance, and coordination. In addition to this,the Navy provides a Tertiary Studies Scheme aimed atmid-career personnel, and a Voluntary Education Studyassistance (VESA) scheme which is available toeveryone throughout their career (civil staff also haveaccess to the scheme).

30


Target Group Succession Process Programme/s Managed by Process

Details

Senior Officers Senior Officer Higher level Defence Studies State Services Defence(CAPT+) Promotion Board Commissioner Act

Succession Planning Senior Management Training (for CN only) 1990Meeting CDF

Middle Ranking Officers Promotion Officers Leadership Development CN NZBR8Officers Board Programme; Maritime Strategy

Programme; Joint Service Staff Courses;Overseas Staff Courses

Junior Officers Junior Officer Divisional Officers Leadership Course; Director Naval NZBR8Promotion Board Junior Staff Courses Officer Posting:

Junior OfficerReview Board

Warrant Officers Warrant Officers Divisional Officers Leadership Course CFPT/CN NZBR38Promotion Board Overseas Staff Courses

Ratings Career Management - Branch Training; Common Promotion CFPT NZBR38Course & Promotion CoursesRosters

Civilians Lateral recruitment under Individuals may access any Civilian DFO16coordination of Civilian programme on application PersonnelPersonnel ManagerManager and NavalCivilian Adviser

Table 5.1-5 Succession Planning and Management

5.2a(1). Education and Training in Relation to Action

Plans. The Navy’s Training System’s (RNZNTS) jobanalysis step integrates with the CM system, andensures that training focuses on Fleet requirementsfor the achievement of action plans. Training objectivesare directly linked to the performance managementsystems (see Table 5.1-3) so that job requirements aretaught using both formal and on-the-job training. Skillsare maintained through formal ‘Continuation training’within the operational continuum (see Figure 6.1-4).

Training for Organisational Key Needs Associated

with Performance Measurement, Improvement and

Change. The Navy sponsors tertiary level training whichfacilitates the introduction of expertise required toadvance performance measurement and improvementto keep pace with technological change. Theorganisation is seeded with NZBEF-trained andexperienced national evaluators. At lower levels the useof Nx tool training has been provided to all personnel.Collective training (Unit and team training) ensures thatpersonnel and equipment operational readiness areconducted under prescribed schedules (NZBR 99) andare continually monitored using WARLOC (to bereplaced by MONICAR). A summary of training alignedto key organisational needs, is contained in Table 5.2-1.

Balancing Shorter and Longer-term Needs. Abalance between the Navy’s needs and aspirations ofindividual employees is created through the Navy firstproviding the training to meet its requirements andthereafter - in support of personal development -supporting supplementary education through the VESAprogramme (see Figures 7.4-9 & 7.4-10), funding of shortcourses, and the Tertiary Studies Scheme. VESA andtertiary study approval conforms to the core valuebehaviour of ‘working in partnership for mutual benefit’.

Just-in-time training in the Branch Training Schoolsaddresses Navy’s shorter-term needs while longer-termneeds for succession and career development are metthrough common training, leadership courses, tertiaryeducation, and specialist courses such as the nine-month Marine Engineering Application Course, providedby the UK’s RN, or the Principal Warfare Officer’sCourses that total some 12 months and are providedby the RAN and RN (see Table 5.2-2).

A project to reduce the size of the training pipelinewithout loss of training effectiveness (Project RENT) isin early stages of its life cycle. Although the project hasbeen scoped and resourced, and already muchresearch and several pilots and infrastructure changes

31


Topic Need/Benefit Coverage

Induction Comprehensive orientation for Service personnel 13 or 27 weekscorporate culture Civilians 1 day

Leadership training Appropriate consistent leadership model All, progressively

Occupational Safety & Health Employee Health & Safety awareness Entire workforce repetitivelySpecialist Safety All Service personnel repetitivelyNBCD and Damage Control All Service personnel repetitivelySea Survival

EEO & Diversity Developing a culturally safe working environment Entire workforce repetitively

Anti-Harassment Advisors Providing in-unit support for harassed individuals Selected volunteers

Ethics High ethical expectations Entire workforce repetitively

LOAC Compliance with UN obligation All service personnel

CDPMS Civilian Staff Performance Management All civilian staff and their supervisors

CPE Assessors Internal assessment of Units 12 volunteers per annum

First Aid Personnel safety All Service personnel and civilians

Computer Software and Specific skills needed JIT for current role As required for all personnelWebsite Development

Table 5.2-1 Training for Key Organisational Needs

Course Location

USN Staff Course United States

Australian Defence Force Command and Staff Course Australia

Principal Warfare Officer Course Australia/ United Kingdom

Advanced Logistics Officer Course Canada

Sea sparrow Missile Operation & Maintenance Course Australia

Advanced Nuclear, Biological, and Chemical Defence Course United Kingdom

Defence Resource Management Course United States

RAN Officers Basic Hydrographic Survey Course Australia

Helicopter Warfare Instructor / Qualified Observer Instructor Course United Kingdom

Table 5.2-2 Examples of Overseas-provided Specialist Naval Courses (not exhaustive)

have occurred, it is too early to report organisationalimprovement.

5.2a(2). The Leadership Development Group (LDG)conducts induction training for new recruits and includesorganisational orientation, indoctrination (Navy’s corevalues and expectations – see Figure 7.6-2), genderequity (see Figure 7.6-6), bi-culturalism, sexualorientation, anti-harassment policies, ethics and OSH(see Figure 7.4-11 & Figure 7.4-12) – including stressmanagement (see Figure 7.6-3). Subsequent coursesprovide aligned leadership and management training.Attendance on these courses is a pre-requisite for everyprogressive promotional step. Workplace andenvironmental training is covered as part of specialisttraining.

‘Induction’ training to ensure that new civilian employeesare provided with a positive, planned and effectiveinduction programme on arrival, is the responsibility ofthe immediate manager (see DFO 14/2004).

5.2a(3). Input to Training Education and

Development Needs from Employees and

Supervisors. Education, training and developmentneeds are systematically identified through the TrainingNeeds Analysis process which uses inputs from subjectmatter experts (employees and supervisors) in thedevelopment of training and delivery options. Coursesare piloted and validated using assessments by ExpertPanels and canvassing both internal and externalsatisfaction. Feedback on all training, education andpersonal development is systematically gathered fromtrainees, instructors, on-the-job graduates and theirsupervisors using the Training PerformanceMeasurement System (TPMS) and is an important factorin the results at Figure 7.4-7. Further input is derivedfrom a range of reports, including post-acquisition,operational, tour of duty, course and study tour reports.Navy also benchmarks its approaches by working incooperation with the other single Services1 in itsformulation of training policies and procedures. (For fullexplanation of RNZN Training System see NZBR 38).

5.2a(4). The range of educational and training deliverymethods including formal and informal approaches arelisted in Table 5.2-3. Subject matter experts recommenddelivery options when setting objectives during jobanalysis. A stated objective of the CN is that personnelposted to sea are not to be disadvantaged with respectto their shore-based counterparts. This resulted in‘Project RENT’ that identified ‘blended learning’ as themost suitable approach for naval training in the future.

5.2a(5). In most cases, trainees consolidate theirknowledge and skills through on job training and/ormentoring; progress is monitored using On-the-JobTraining Task Books.

Improvement goals are set and monitored usingperformance management systems. Training andperformance management systems (Table 5.1-3)ensure that job requirements are taught and thatlearning outcomes are managed on the job. Individualand collective programmes of exercises, particularly atsea and often on a daily basis, reinforce knowledgeand enables development and skill retention throughrepetitive practice (see NZBR 99 and MONICAR).

5.2a(6). MOET systematically evaluates all operationalpractices for their overall efficacy and makesrecommendations for improvements. TPMS measuresthe effectiveness of internal training. In addition a stronginformal networking arrangement exists betweensupervisors at sea and trainers ashore, which enablesfeedback on effectiveness. Final training and educationeffectiveness can also be assessed through identifyingcause and effect relationships affecting the Navy’sperformance measures in the DPMS (see Item 4.1).

5.2b Motivation and Career Development

The reward and recognition systems identified in 5.1(b)and the Navy’s employee education training and

32


1 The Joint Education and Training Governance Group

(JETGG) and the Joint Education and Training Working

Group (JETWG).

Employee Overall Objective Educaton/Training Approaches Delivery Methods

Uniformed - Knowledge, Skills, RNZNTS (all prerequisite): Formal Instruction in NZ and- Attitudes for Satisfactory - Comprehensive Induction Training overseas- Job Performance - Technical Training for trade Full time University- Qualifications - Professional Training for rank Working Models

Simulation/emulation/CBTExperiential LearningOn Job Training/Coaching

Civilians Individual knowledge or - Induction Training is common to all Intact Team/Unit Trainingoverseas skill gaps are identified - Special skill upgrade training is Sea Training in NZ and

by CSPMS - sourced as needed with other naviesDistance LearningOutsourced Block CoursesVESA

Table 5.2-3 Training and Education Delivery Methods

development systems and approaches described in5.2(a) are the mechanisms used to help employeesattain job and career related development and learningobjectives. Determining the ‘motivators’ and ‘levers’ ofNavy’s people is achieved through surveys such theRNZN YSS and OAtS which contribute to a MotivationIndex measurement.

A critical component of motivating and utilising the fullpotential of Navy’s people occurs on a daily, routinebasis via direct and personal interaction with careermanagers, divisional supervisors, and managers.Communication of expectations, the provision offeedback, mentoring, support, the provision ofprofessional and personal growth opportunities, andliving the Core Values maximises and realises potential.

5.3 Employee Well-Being and Satisfaction

The Navy work environment demands an holistic andsystematic approach to ensure workplace health, safety,security, and ergonomics, because the ongoingPreparedness and readiness of its personnel are keyto maintaining Navy’s required levels of capability (SG1& 3). Additionally, teams of psychologists, chaplains,social workers and Marae staff provide relevant supportfor the prevention and/or care of non-medical threatsto individuals’ readiness and Preparedness.

5.3a(1). Work Environment

● Medical Health and Fitness. Navy has a dedicatedhealthcare organisation that sets medical and dentalhealth standards, provides medical training,promotes fitness and wellness, and providescomprehensive on site medical (the Naval Hospitaland in ships) and dental (Fleet Dental Centre)services (see Figures 7.4-4 & 7.4-5). Navy providesaccess to both routine (proactive) and acute(reactive) health services in every workplace.Health and fitness assessments are conductedregularly and provide the Director of Naval Medicinewith information on personnel health status andtrends, informing improvement initiatives. The overallmeasure for health and fitness of RF personnel isFitness for Operational Service (Figure 7.4-1).Because physical fitness is a condition ofservice, Navy provides physical fitness trainers anda range of programmes (including Navy’s unique‘Body4Life’ initiative) and amenities (gymnasia,swimming pool, sports facilities) to encouragemaintenance of physical Preparedness of allpersonnel. All RF personnel are trained in first aidand CPR. Time off is given to maintain physicalfitness.

● Occupational Health & Safety (see also P1.a(3)‘Special Health and Safety Issues’). A dedicatedOSH team is responsible for oversight andimprovement of health, safety and ergonomics for

33


all individuals in the workplace (see 7.4-11 &7.4- 12). Provision of a safe and healthy work placeis a leadership function. Each work area has a Safety,Health and Environmental Management System(SHEMS) co-ordinator and each Unit has arepresentative SHEMS Committee to assist,develop, and manage health and safety. Thesecommittees conduct workplace safety audits, and aformal record of proactive safety activity at theworkplace is maintained within the SHEMS register.This data enables senior leaders, managers andthe Unit SHEMS Committees to implementimprovement. Two Units of Navy, the RoyalNew Zealand Naval Armaments Depot Kauri Pointand the Fleet Engineering Centre, have receivedPRINCE Awards (NZ Chemical Industry Council) formaintaining exemplary safety standards.

● Personal Workplace Security. Navy creates aninclusive culture that enables equitable careeropportunities and maximum participation for allemployees through EEO policies. The Core Valueof ‘Comradeship’ drives Navy’s approach to fairnessand equity (see Figure 7.6-6). Navy is a member ofthe EEO Trust, and proactively applies the NZDFEEO policies. An EEO Coordinator oversees fairnessand equity. Anti-Harassment Advisers (AHA),Mediators, and Investigators are selected from allranks, genders and branches, and given formaltraining. Policy requires that units have a minimumof 2% of its personnel trained as AHAs; Navyexceeds this. An example of employees taking partin improvement efforts is the SLT Gender Integrationproject.

Due to the nature of Navy’s business, personnel areexposed to threats to their personal security as a resultof military activity. Comprehensive physical, personaland documentary security arrangements exist, largelyimposed by international protocols.

Sea Safety. Sea safety policies, procedures andtraining (all monitored, evaluated and measuredat operational levels) are coordinated by the MOETin conjunction with the Navy’s Sea SafetyTraining Squadron. Standards and policies incorporatethe requirements of the UN’s International MaritimeOrganisation, Lloyds Register, and MaritimeNew Zealand.

5.3a(2). Navy prepares for workplace emergencies anddisasters at sea and on shore by practising regular,ongoing and progressive fire fighting, damage controland survival-at sea training. The SHEMS programmefor sea and shore Units requires regular audits andinspections of all workplaces, including the checking ofemergency equipment and the MOET conducts annualSafety and Readiness Checks (SARC) of all Ships (seeFigure 6.1-4). Standard approaches to known threatsto internal security (bomb threats, suspicious letters,

34


etc) are regularly promulgated and exercised. Navypersonnel are trained to participate in support of civildefence emergencies and regularly exercise these skillsin time of disaster. Civilian personnel also have accessto fire fighting, disaster control, and first aid training.

5.3b Employee Support and Satisfaction

5.3b(1). An in-house team of industrial psychologistsand HR managers utilise employee surveys (YSS andOAtS) and specific research projects, such as ProjectPARIS (Personnel Attrition and Retention InitiativesStudy) determine key well-being, motivation andsatisfaction factors by employee segments.

5.3b(2). The principal personnel support structure is theDivisional System (see NZBR9 Series) supported bythe PDB. The range of support services, benefits andpolicies offered to the Naval community is contained inTable 5.3-1. Civilian personnel have access to most ofthe services benefits and policies available to Servicepersonnel, except the Divisional and CM Systems.

5.3b(3). The information derived from the methods listedin Table 5.3-2 is used by the subject matter expertsdescribed in 5.3b(1) and is an input to the SMP (seeTable 2.1-1). An ongoing NZDF-sponsored CohortStudy compares its results against OAtS data to further

Method (for all,unless Type Frequency

indicated otherwise)

Your Say (Continuous Formal 6 monthy reportAttitude) Survey to CN & NLB

Exit Surveys Formal Continuous

EEO Organisation Formal Bi-annual to CDF

Naval Community Informal ContinuousOrganisation

Branch meetings/Seminars Informal Bi-annual

Branch Steering Formal As requiredCommittee Surveys

Divisional System Formal Continuous(Service personnel only)

Career Management Formal ContinuousSystems (MD 68, RNZN41, PCR, CSPMS)

Personal grievance Formal Continuousprocedures for Civil Staff

Anti-harassment reports Formal Six-monthlyfrom Advisors

NZDF Complains Formal Continuous -Submissions, and annual reportingGrievance Systems to CDF

NZDF Online Formal Three-monthlyAttitude Survey ongoing attitude

survey

Table 5.3-2 Methods of Gauging Satisfaction, Motivation,

and Well-being

Support Service/Benefits/Policies Support Service/Benefits/Policies

Employees - Naval Information Bureau Sporting & - Fitness Centres & Gymnasiaand Family - Naval Community Organisation Cultural - Qualified fitness instructors

- Naval Community House - Swimming Pool- Naval Chapels & Chaplaincy - Squash, Netball & Tennis Courts- <2yrs & >2yrs Child Care - Sports Complex- Base Library - Command Sports Organisation- Recreational Amenities - 22 sports & cultural clubs- Equipment hire - Bicultural Partnership policy- Museum - Te Taua Moana Marae

Health and Welfare - Free Medical/Dental/Visual care - 24/7 - Naval Chaplainsand Counselling - free inoculations Pastoral - Social Workers

- Navy Hospital provides medical and surgical Care - Family Care Worker- services to Naval (and other NZDF) personnel - Divisional system/Command Chain- Flexible working hours/week- Managed operational tempo for ships Recreational - Holiday Accommodation (Motels)- Parental Leave - Navy Alpine and Ski Club- Compassionate & Bereavement Leave - Fishing Hut- Leave Without Pay and Time Off in Lieu, - Adventure Training- Stand-down leave - Family Camps and Children’s camps- Car Parking (near & on base) (financed by the RNZN Central Fund)

Communication - E-mail to Ships Financial - Group Medical and Home Loan- Private Message Systems - Schemes- Newsletter Community Connection Tuesday - Naval Housing/DTLS/Rent subsidies- and Friday information bulletins (electronic) - Overseas living allowances- 0800 445 5915 (24/7 info line for families) - Financial advisory and Resettlement

- Seminars- RNZN Benevolent Funds (for mortgage assistance, home improvement, etc)- Voluntary Education Study Assistance- NZDF Discount Booklet

Table 5.3-1 Support for Diverse Needs of Employees (Not Exhaustive)

35


inform future strategies to optimise personnelwell-being. Informal assessment and measures ofemployee well being, satisfaction and motivation isprovided for through the operation of the DivisionalSystem, and through the exercise of other leadershippractises that are taught on Navy leadership courses.A significant informal method is the utilisation of theWON to gauge the ‘pulse’ of the Navy and its peoplethrough regular meetings, walk-arounds and tours ofall areas of the Navy.

5.3b(4). Assessment findings are related to businessresults and priorities are identified and HR initiativesare integrated within the SMP.

6.1 Value Creation Processes

6.1a(1). Navy delivers value to its customers andstakeholders through the provision of MMC. Key valuecreation process were identified through the building ofthe DPMS using the philosophy and tools of systems-thinking. A value chain analysis based on Porter’s valuechain model was conducted and resulted in theidentification of the following four systems (collectionsof value creation processes): Career and Work Systems,Logistic Systems, Leadership and OperationalPreparedness. This work is captured in the MissionDelivery Model (Figure 6.1-1 and Figure 4.1-2).

Navy uses these four value creation systems to convertits People and Resources into Outputs and Outcomes.It creates value by bringing Platforms (ships, equipmentand material) and manpower together so that they areable to execute military tasks. The systems areinterdependent and collectively lead to organisationalsuccess, and sustainable and efficient operations.

Career and Work Systems encapsulates theIntegrated Personnel Career Channel (IPCC) and ismore fully described in Category 5.1. This is a through-career system for all uniformed personnel that ensuresthe continuous flow of personnel needed to achieve abalance of organisational requirements and individualneeds, in order to ensure organisational sustainability.Its level of success enables seamless succession at

6. PROCESS MANAGEMENT

progressive experience levels, while simplifying therecruiting of replacement resources against vacancies(see Figure 6.1-2).

Logistic Systems create value by ensuring allPlatforms and infrastructure are materially prepared for,and are sustained in, all operational contexts. Logisticssystems include major and minor capital projects, andDIFOTIS stores supply. The Configuration ControlProcess is a key process for the management ofcapability upgrades. (see Figure 6.1-3).

36

Figure 6.1-1 Navy Mission Delivery Model

Figure 6.1-2 RNZN Human Resource Competency Model for Value Creation

Figure 6.1-3 CCP Process

37


Leadership creates value by setting direction,balancing the needs of stakeholders, managing theother value creation and support processes, andcreating a climate for success. Leadership is integralto the military culture and permeates all facets of Navyoperations, personnel management and supportsystems. The CPE and SMP (Figure 2.1-1) are keycomponent of Leadership. Navy is currently reviewingthe utility of the Leadership process as a discrete ValueCreation Process.

Fleet Readiness creates value by bringing togetherPlatforms and people and working them into a highperforming team capable of fulfilling military tasks.Within Fleet Readiness, force elements develop militarycapability through the Operational Continuum (see

Figure 6.1-4) at periods prescribed through the FleetPlanning Process (see Figure 6.1-5). A recent innovationhas been the development of the MONICAR System,which aligns, automates, and reports the results andachievement of Readiness for all force elements. Thissystem is expected to be deployed by 30 June 2006and has drawn considerable interest from allied andfriendly navies.

6.1a(2). The requirements of the value creationprocesses have evolved over a considerable period oftime of operating Platforms in a wide variety ofemployment contexts across the spectrum ofoperations. Where business direction changes, forexample the introduction of commercially designedpatrol vessels, process reviews are undertaken to

Figure 6.1-4 Operational Continuum

38


determine key process requirements. At appropriatelevels Navy applies SAPI Step 5 to determine processrequirements.

The attributes of Navy’s key Value Creation Processes

are shown in Table 6.1-1.

6.1a(3). Having written established processes is one ofthe methods of managing a complex organisation withshort employment cycles in each job. As a result Navyis a ‘process-oriented’ organisation. The key valuecreation systems in 6.1a(1) comprise multiplesub-processes, most of which have demonstrated theirvalue over a long period. The Navy’s process designphilosophy is based upon incremental improvement ofthese existing processes.

There is an extensive range of manuals containingprocesses, standards and instructions. Many processesare well established and are reviewed and updated tomeet changing needs. Changes to processes driven bythe introduction of new technology are undertaken utilisingthe Configuration Change Process (Figure 6.1-3). Manyof the Navy’s processes, particularly in the maritimeoperational field, have been adapted from allied naviesand NATO to ensure interoperability and to enableleverage off larger organisations.

In other cases special project teams are tasked withredesigning or creating processes to meet changedrequirements. Project team members are selected toensure organisational knowledge is available andapplied to the design process eg. the PROTECTORTransition Plan includes tasks to design entirely newprocesses related to the operation and maintenance of

the seven new ships. Cycle-time, productivity, costcontrol and other efficiency and effectiveness factorsare all inherently considered during process review ordesign eg. using external consultants the PerformanceBased Logistics (PBL) study has involved an extensivereview of ‘as is and to be’ processes for the Navy’sengineering support. New or amended processes aretrialed and modified until there is confidence in theireffectiveness.

Navy has SAPI as an available tool for ensuring thatprocesses meet design requirements. The SAPI Step6 process demands decomposition down tosub-process level by detailing all the steps necessaryto achieve the key requirements. The Step 6sub-processes are:

● Define and confirm process scope● Develop process decomposition diagrams for all

major processes● Determine sub-processes through process

decomposition● Document business transactions (process mapping).

Some specialist functional areas use external processesand certifying bodies to identify key processrequirements, eg.:

● The RNZNTS is used for the design of new trainingcourses, but quality control is assured by adherenceto NZQA moderation processes

● The Fleet Refit Group, Ship Repair Unit and theNaval Supply Depot are ISO 9001: 2000 certified.

Figure 6.1-5 Fleet Planning Process

39


6.1a(4). Key performance measures and indicatorsare found throughout the DPMS scorecards (Figure 4.1-1) and these are visible to all levels of the commandchain. Specific areas use tailored tools, incorporatingin-process and output measures to provide a dailyindication of performance. For instance, using acombination of leading and lag measurementsMONICAR will provide in-process and output measuresof performance for all ships. These measures are usedin process management as described in 4.1a(1).

Customer input is used in process management asdescribed in Item 3.1 and Item 3.2. Partner and supplierinput is provided for in formal mechanisms, includingcontracts eg. the Dockyard Management Contractstipulates how VTF is to be integrated with Navy’sengineering support, including an Alliance Board andjoint operational committees (see Figure 1.1-1).

6.1a(5). Minimising Costs. The overall approach tominimising costs associated with inspections, tests andperformance orders is to evaluate through simulationand modelling (Bridge Simulator, Damage ControlSchool and Tactical Trainer), exercises (Command andControl) and self-diagnostic inspections (MaritimeOperational Evaluation Team). Evaluation processesare benchmarked against allied navies. These

approaches are cost-effective compared to live militaryoperations. Costs are minimised by using qualityassurance methodologies, appropriately skilled internalresources for inspections, auditing to defined criteria,and using in-process measurements to allow time forpreventative action to be undertaken, and to giveconfidence that intended outcomes will be achieved.

Although some audits and inspections are dictated bycalendar requirements, the timing is planned to preventmajor disruption, or impact upon other processes, thusminimising associated cost. Planning enables the co-ordination and optimising of effort and time. Forinstance, there is a family of plans, guidance instructionsand inspections that exist to ensure that ships meetoperational standards (NZBRs 7 and 99).

The Navy uses a Quality Assurance approach to

prevent defects and rework by demanding strictadherence to Preventive Maintenance Routines,Standard Operating Procedures (SOPs), and StandardOperating Checks (SOCs).

6.1a(6). Navy improves its value creation processesand keeps them current by following the processesdescribed in 6.1a(1) to (5). Improvement is shared withother units by using the communication media identified

System or Outputs Output Controlling In-System or In-system or in

Process Measures Mechanism in-process process

requirements measures

Career and Work Right people, right R3 Weekly, monthly, MPE + Training Continuity R1, R2, R3

System place, right time and quarterly Margin as Competency PSI modelmanpower reports modified by the Satisfaction P3, PMI, TPMSOPRES Funded Personnel Efficiency w.i.p.

Level

Fleet Readiness Annual Plan Planned: Actual to PA Timeliness Planned to actualFleet Plan LOCs OLOC Acceptance WARLOC/MONICARSea days Response Time Fleet Plan Achievability OPRESMaritime military OPRES Op orders Flexibility METLscapability Operational (FAMT)

readiness,Deployability,Sustainability, &Combat viability

Logistics Systems Equipment DIFOTIS DFO 52 Timelines Turnaround timesavailability through OPRES NZBR 7 Acceptance Temporal Measuresintegrated OPDEF NZBR 14 Affordability Cycle timesengineering supply Performance NZBR 26processes STORDEM

Performance

Leadership Org alignment, Strategic goal Defence Act, Leadership training PerformanceEconomy of effort, achievement Armed Forces and development Managementclarity of purpose, PA achievement Discipline Act, & Performance systemsClear lines of DFOs feedback Core Valuesaccountability Standard leadership AppraisalCommunication models 360˚ feedbackvalues Knowledge TimelinesNaval Excellence CPE Scores measurement Reporting standards

Nx Programme capability Annual activityProcess capability schedule

Table 6.1-1 Attributes of Navy Value Creation Processes

40


at Table 4.2-1. These include, but are not limited to, theEARLLS database, branch forums, high visibility usingLAN and Intranet, amendments to technical andadministrative reference books and training, checklists,Navy orders, CO’s directives, CO’s forums, andbriefings. All process and documentation amendmentproposals are checked for relevance, ambiguity andclarity before being incorporated as appropriate.

Navy also uses inputs from WARLOC (expected to bereplaced by MONICAR by 30 June 2006), MOET,Weapons Analysis reports and 4 India suggestions, toshare improvements and lessons learned.

6.2 Support Processes and Operational

Planning

6.2a Support Processes

6.2a.(1). Navy determined its key support processesthrough the process of building its DPMS using thephilosphy and tools of Systems Thinking. A value chainanalysis based on Porter’s value chain model wasconducted and resulted in the identification of thefollowing two systems (collections of key supportprocesses): ‘People’ and ‘Resources’, both of which canbe considered as inputs to the value creation systemsin 6.1. This work is captured in the Mission DeliveryModel (Figure 6.1-1).

Not all of Navy’s support systems and processes areintra-Navy. NZDF provides a wide range of supportprocesses to all Services: Information Technology,Clothing, Rations, Fuel, Public Relations, OfficeSupplies, Civilian Staff Administration, Superannuation,and Personnel Policy.

Intra-Navy support systems and processes are listedin Table 6.2-1

6.2a(2). The requirements of support processes haveevolved over time. Where support requirementschange, such as the requirement to have a transparent,integrated financial system, new support technologiesand processes, such as SAP, are introduced. Atappropriate levels Navy applies SAPI Step 5 todetermine process requirements.

The requirements of Navy’s key support processes areshown in Table 6.2-1.

6.2a(3). Like value creation systems, Navy’s supportsystems have well-established processes. The processdesign approach is the same, and is based onincremental improvement. More recently many of theNavy’s support processes have been provided by theNZDF (eg. information technology support) or havebeen modified to align with NZDF requirements.

Key Support Outputs Key Performance In-Process Controlling

processes Requirements Measures Measure Measure

Financial Funds to meet Budget process % Input Budget Timely financial Public FinanceManagement planned activity Account Variance reports Act

managementprocesses FCS DIFOTIS FISCOLBudgetaccountability

Equipment Obtain equipment Within budget Actual as % of Mil Key to schedule DFO 52Asset to maintain or Can be Capability Funding. Budget approval ContractsManagement enhance capability supported Manufacturing

Meets ILS Qualityelement Assurancerequirements checksEthical process

Infrastructure Provide sustainable Within budget Actual as % of Mil Key to schedule DFO 32Asset and appropriate Can be Capability Funding. Budget approval ContractsManagement facilities supported Capital Renewal Index Contractor

Ethical process (Yrs to replace qualityInfrastructure). AssuranceBuildings and Facilities checksCondition Index.Housing ConditionIndex.

Strategic Provide reliable and Refer to Contract KPIs for Refer to DFO 52Partner efficient fleet Dockyard Dockyard in an Index. Dockyard ContractPerformance maintenance Management Management

Contract Contract

Naval Base ServicesSupport Corporate Services Refer to the DPMS NSS ScorecardServices Command Services

Table 6.2-1 Key Intra-Navy Support Processes and Attributes

41


6.2a(4). Key performance measures and indicators forsupport processes are found throughout the DPMSscorecards (Figure 4.1-1) and these are visible to alllevels of the command chain. Specific areas use tailoredtools, incorporating in-process and output measures toprovide a daily indication of performance.

The key performance measures and indicators of somekey support processes are listed in Table 6.2-1. Thecommand chain is the means by which key processowners report on the status of key performanceindicators. For example, in relation to financialmanagement, Financial Advisers and Functional AreaManagers, (responsible for a collection of Cost Centres),report daily on financial issues, and formally on budgetvariances at the end of each month. These reports arereviewed at monthly management meetings, wherecorrective action and improvement options areconsidered. The in-process measurement system forfinance, the Management Information Portal System(MIPS), which is an electronic add-on to SAP, is updateddaily, and is available to all Cost Centre Managers.

6.2a(5). Costs are minimised by using quality assurancemethodologies, internal resources where appropriate,auditing to defined criteria, and using in-processmeasurements to allow time for remedial action, and toprovide confidence that intended outcomes will beachieved. The Navy approach to minimising service

errors and rework is through ensuring strict adherenceto formalised processes.

6.2a(6). The methodology used by Navy to effectimprovement to support processes and to sharelessons learned is the same as that described inresponse to 6.1a(6).

6.2b Operational Planning

6.2b(1). The NZDF is allocated funding from theGovernment to enable it to deliver outputs in accordancewith the annual purchase agreement. Funding

delegation down to Cost Centre Managers is providedvia an ‘Instrument of Delegation’. Funding is allocatedin two parts: operating and capital. The two do notoverlap, nor are funds from one transferred to the other.

Operating costs are those expenditure items used upduring the year and having a life of less than one yeareg. for salaries, fuel, repairs, etc.

The Navy ensures that it has adequate operating

financial resources by developing and costing anannual fleet activity plan, and at the same time costcentres budget against planned activity for theforthcoming year. These are combined as a Navybudget bid to CDF, who balances the overallrequirement, and allocates funding. Navy then adjustsits activity plans to meet the funding provided.

Capital funding. During the fiscal year reports againstboth targets and budgets are monitored within theDPMS and by monthly financial performance reportsCFO(N) to the NLB. There is an internal re-prioritisationprocess that re-allocates funds during the year to areasof Strategic need. Requirements are determinedthrough the development of detailed investment cases,which are then included in the NZDF capital programme(for large scale investments), or the Navy’s capitalprogramme (discretionary) for small-scale investments.Requirements for capital budgets are reviewed severaltimes a year within HQNZDF and endorsed by theGovernment, once a year. Capital funding falls into threecategories:

● Discretionary (>$100k)● Minor ($100k-$7m)● Major ($7m +)

Capital funding is linked to systems such as OPRES(based on the NZDF Capability ManagementFramework (CMF)), and higher level strategic plans (ie.Real Estate Strategic Plan).

The Capital funding process requires that Navyconsiders, among other things, the life-cycle costs ofnew capability and these are factored into the annualbudgeting and planning process (see also 1.1a(3)).

Financial risks are assesed during the developmentof investment cases, and monitored through the use ofthe Navy’s risk register and risk matrix (see Figure 6.2-1 & 4.1b(1)).

The NZDF operates a well-defined risk management

policy (DFO 81) through the NZDF Audit Committee,whose role is to monitor the effectiveness of the NZDF’srisk management framework in identifying andmanaging risks (see Figure 1.2-1). The responsibilitiesof the NZDF Audit Committee and Directorate of Riskand Assurance include, but are not limited to:

● Providing assurance to the CDF that the NZDF hasin place effective and efficient systems for themanagement of risk

● Providing input into the formulation, andmaintenance of, risk management policy andprinciples

● Monitoring compliance with NZDF risk policies,principles and procedures including the prevention

and detection of fraud and compliance withrelevant regulatory and legal requirements

● Providing input into the development of riskprogrammes and procedures

● Providing assurance to the CDF that the NZDF hasin place effective and efficient systems for internalaudit

● Reviewing and considering the draft corporate auditstrategy and supporting annual audit programme.

42


6.2b(2). Contingency plans and procedures for thecontinuation of both organisational and operationalcommitments have been formulated within variouscorporate and functional areas. For instance they caterfor major disruptions in the handling of financial

transactions internally to the service and externallybetween the service and its customers andstakeholders; medical emergencies, and majorbreakdowns in the NZDF communications systems.HQNZDF are part of the Government’s InteragencyPandemic Group (IPG), and NZDF are part of many ofthe sub-working groups, which include health, bordercontrol, legal, law and order, external, logistics.

The Naval Hospital has a responsibility to ensure theprovision of services as agreed in the Service LevelAgreement with the Director of Naval Medicine (DNM),in the event of a major pandemic eg. ‘Bird flu’.

The provision of emergency power generators, disasterrecovery and data back-up policies and procedures,safeguards the continuity of both internal and ship-shoredata links.

Figure 6.2-1 Risk Matrix for the Resources Perspective – DPMS Navy Corporate Scorecard.

7 BUSINESS RESULTS

43

Fig 7.1-1

Fig 7.1-2

Fig 7.1-3

Fig 7.1-4

Preparedness is the Output Quality dimension of MMCand is provided to CDF in the form shown in thisdiagram. Preparedness is classified and actual resultsare not releasable.

The NZDF Output Plan (Customer Requirements)defines outputs as a range of sea-days at defined levelsof capability. Navy may interchange operational tasksbetween outputs, and the CDF may fund additionalcapability to facilitate responses to regional or globalcircumstances. Seadays are also an indication of theefficiency of the fleet planning process (Category 6),balancing the needs of the customer and otherstakeholders (ship’s companies and their families needfor time together, routine maintenance and capabilityenhancements for the owner (NZ Government)). Sea-days are reported as at the end of the Navy FinancialYear (ie. 2005 is period 1 Jul 04-30 Jun 05).

7.1 Product and Service Outcomes. 1999 decrease: CANTERBURY major maintenance andAviation Capability upgrade.2000 increase: East Timor Operation.2001 decrease: CANTERBURY steam plant defects.2002 decrease: early return of deployed Ships to NZpost 9/11 for contingency ops.2003 increase: Operation Enduring Freedom, Persian Gulf.2005 decrease: CANTERBURY major equipmentdefects and early decommissioning.

2000 Increase: East Timor Operation2001 Decrease: Increased time alongside in NZ as arespite from 2000 East Timor Operation2003 Decrease: Major defect rectification2004 Decrease: Installation of new equipment

1999 Decrease: Operation BELISI – extended periodsat anchor.2000 Decrease: Extended periods at anchor conductingDiving Operations and Training.2001 Decrease: Major equipment defects.2002 Increase: Solomon Islands Operation.

Where applicable, result graphs show an arrow toindicate the direction of favourable performance. Wherearrows are shown pointing together favourableperformance is based on achievement of planned ortarget figure (this acknowledges that many of the Navy’sresults are concerned with ‘balance’). In some graphswith arrows pointing together one is longer than the other– this indicates that although the overall objective is tomeet the target, movement towards the direction thatthe longer arrow is indicating is favourable.

44

7 BUSINESS RESULTS

Fig 7.1-6

Fig 7.1-7

Fig 7.1-8

Fig 7.1-9

The RNZNVR manned the IPCs up until April 2005 whenthey were transferred to Regular Force manning toincrease training and develop Multi-agency operationcompetencies to prepare for the introduction ofPROTECTOR vessels. The RNZNVR suffered crewingdifficulties in 2004.

In 2000 the method of hydrographic data collectionchanged with the installation of modern equipment thatenabled the same quantity of data (with improvedquality) to be collected with less than half of the previoussea-days. The contract with LINZ currently specifies anumber of ‘LINZ’ days, either at sea or alongside.

In addition to Hydrography for LINZ, RESOLUTIONcontributes to Naval Operations & Training, and supportsthe Defence Technology Agency for at-sea trials.1999 Decrease: First year of operation of newHydrographic Ship, and incorrect planning conducted.2004 Decrease: Due to major maintenance.

Personnel are a key component of the quantitydimension of MMC provided to CDF. The downwardtrend over 2004 was to meet an imposed ceiling of 1800personnel. The Target line subsequent to that was tomeet the manpower requirements for PROTECTOR. Amore relevant measure is crewing to the MPE, whichdefines the crewing of actual positions. In 2005 a project(Review of Master Establishment) was initiated fromthe SP to ensure validity of MPE data; this is due forcompletion in late 2006.

Fig 7.1-5

Changes were made in 2003/2004, and again in 2005to the way that diving and MCM contribution wasmeasured.

7 BUSINESS RESULTS

Fig 7.1-11

Fig 7.2-1

45

Fig 7.2-2

The decrease in 2001 was due to the emergencyrequirement for Navy to operate Northern RegionalPrisons due to industrial action (a CDF directedrequirement). Recent downward trend (2005) reflectsthe move of personnel to temporary or training positionsto prepare for the introduction of PROTECTOR Vessels.

7.2 Customer Focused Outcomes

The Navy’s Customer (CDF) provides direct feedbackto the CN during their regular meetings (See Cat 3),and as a result Customer Feedback is not formallysolicited. However, as a proxy and to monitor CDF’srequirement for reputation management, the NZ Public(as the final beneficiary) is polled 6 monthly throughthe OMNIBUS Survey.

Public satisfaction is showing a slow but steadyincrease, whilst the comparator is showing a decline.The difference in the two is a direct reflection of thegeographical, political, and societal differences of thetwo countries.

Fig 7.1-10

The % of sea and shore billets filled provides anindication of the improvement in Navy’s ability to deliverthe personnel quantity dimension of MMC. Thesignificant drop in Feb-Sep 05 was caused by thedecommissioning of CANTERBURY (250 personnel)and whilst the ship was alongside, personnel wereremoved and posted to other billets. The trend line ispositive and has been adjusted for the posting ofpersonnel as the ship decommissioned.

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7 BUSINESS RESULTS

Fig 7.3-4

Fig 7.4-1

Navy only uses spare capacity within these three unitsto operate in the market place and in each casecompetes in only a very limited sense. The objective isto obtain a partial offset to operating costs. The hospitaldepends on patient allocation from the Health Providerand Hydrography, while operating under a fixed contactwith LINZ, uses spare capacity to support other outputexpenses.

7.4 Human Resource Outcomes

Fitness for operational service is an important enablerfor delivering MMC. FFOS includes physical fitness,dental fitness, lack of passport, security clearance,medical unfitness, non-citizen of New Zealand,personnel on leave without pay, and other issues.Significant issues for Navy in FFOS includes a lack ofDentists (both in Navy and the NZDF in general) toconduct routine dental checks (required annually) butlack of a dental clearance does not preclude service atsea. This issue is being addressed at a Defence level(Army is responsible for provision of Dentists). Tomanage this issue, personnel who are required to deployon an Output 16 operation are fast-tracked throughdental clearances. Initial trainees (drop in Jan 2006)also have a significant adverse affect, as when theyjoin the Navy they are required to gain operationalfitness (ie. passports, security clearances etc) and thistakes between 3-6 months.

Fig 7.3-2

Fig 7.3-3

The Navy has three Business Units that generaterevenue, whose results are shown at Figs 7.3-2,7.3-3and 7.3-4. The overall contribution of the Business Unitsto Navy revenue is small (less than 2%).

Fig 7.3-1

7.3 Financial and Market Outcomes

The Navy’s KEY financial measure is operating withinbudget (+/- 1%), which has shown constant adherenceover the past five years. This is the key financialperformance measure for CDF.

The ultimate success of the work system is capturedwith the delivery of MMC (see Item 7.1).

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7 BUSINESS RESULTS

Fig 7.4-5

Fig 7.4-6

Fig 7.4-7

Military Sick Leave is allocated by medical staff andtherefore it is an indicator of wellness. The results reflectseasonal trends with peaks during winter sports andtroughs during the main leave period over Christmas.The overall trend is downwards indicating improvedhealth overall. Physical health is a factor in ‘Fitness forOperational Service’, see Fig 7.4-1.

Net Flow Index shows whether the RF strength is increasingor decreasing. The variable target for increase is to providemanpower for the PROTECTOR fleet. This is a keymeasure and it shows that recruiting sufficient numbers tomeet the target is proving difficult in the current buoyantemployment market. There are a number of strategies inplace to assist growth (see Categories 2 & 5).

The OAtS attitudinal survey shows overall satisfactionis increasing and has now assumed the highest resultof the comparative group.

Fig 7.4-2

Fig 7.4-3

This data from the OAtS Survey shows that Navypersonnel are overall more satisfied with their careermanagement than the comparators.

The reducing trend in civilian attrition was disturbed in2004/5 by a Defence Review which transferred Navycivilian staff into Defence positions. These show as aloss to Navy but are not attrition in the overall sense.This graph reflects ongoing target review. Thebenchmark is the mid point of the State ServicesCommission ‘norm’ for the Public Service.

Fig 7.4-4

Civilian staff may take up to 10 days per year as sickleave and can accumulate any balance. Sick leavetaken can be an indicator of commitment and employeesatisfaction. There is a clear trend of reduction in thetaking of sick leave.

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7 BUSINESS RESULTS

Fig 7.4-11

Fig 7.4-12

Fig 7.5-1

While the trend of VESA courses undertaken shows aslight decline, the average cost per course has risenfrom $485 in 2001 to $755 in 2005. Overall thisrepresents an increase of 25% to a total contribution of$249 905 in 2005.

Accidents continue to show a steady decline. Workrelated accidents are low for the number of employeesand fluctuations are not significant.

7.5 Organisational Effectiveness Outcomes

The Navy embarked on the continuous improvementjourney in 1999. Both of Navy’s NZBEF Awardapplications have resulted in a Bronze ‘Progress’ award.In 2003 a significant OFI was the Navy’s ability tomeasure results, and the development of what hasbecome the DPMS was commenced. Whilst stilldeveloping in terms of organisational learning,significant progress has been made in this area. The

Fig 7.4-8

Fig 7.4-9

Regular Force attrition is consistently close to targetlevels. The comparative data shows Air Force hasimproved its retention by selectively extendingemployment contracts and Navy is using this informationto contain and manage its own attrition rate.

Fig 7.4-10

This graph shows that Navy personnel have a highawareness of the Voluntary Education Study Assistance(VESA) opportunity.

Injury rates of RF personnel continue to show a steadydecline, a reflection of robust OSH practices and theNavy’s SHEMS/ HSNO processes.

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7 BUSINESS RESULTS

Fig 7.5-5

Fig 7.5-6

Fig 7.5-4

Active Engineering Change Proposals are engineeringimprovements to ships. This is a process measureshowing that the rate of implementation is exceedingthe rate of project development, meaning the backlogis reducing. As the number of proposals beingdeveloped is reducing, the graph shows there has beenprogressive process improvement.

The Capital Renewal Index reports the number of yearsto replace assets based on current expenditure. Thebenchmark is the US Navy. The graph shows markedimprovement in asset management over the period.

Stores support to ships is a core process and isfundamental to ships being ready and able to operate.DIFOTIS (Delivered in full, on time, and in Specification)measures the on-time delivery as reported by the shipagainst the requested date.

Fig 7.5-2

Navy Hospital was first accredited by Quality HealthNZ in 2002. The graph reflects the outcome of theaccreditation audits in 2002 and 2005 and displays themarked improvement achieved in 2005. On bothoccasions the criteria for compliance with the Ministryof Health’s Health and Disability Sector Standards wereexceeded. Note: ‘Recommendations’ must beimplemented. ‘OFIs’ are optional.

Fig 7.5-3

Although Navy’s KEY financial outcome is within+/- 1% of budget, there is no one manager responsiblefor end-to-end process of output delivery. To overcomethis issue, Navy measures input budget variances tomonitor and control the output budget process, (seeFigure 7.3-1.)

DPMS is now entering the ‘improvement’ phase, withits main benefit being the development of a cultureamong leaders to ‘manage by fact’.

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7 BUSINESS RESULTS

Fig 7.5-10

Fig 7.5-11

Fig 7.5-9

The Hydrographic Survey Ship, RESOLUTION has ahigh availability requirement. The graph showsseasonal leave periods when the Ship’s staff was notavailable to receive material support. The patternreflects the policy of not carrying a full range of sparesfor this vessel but the Defence standard is still metoverall.

When Navy infrastructure projects are funded by NZDF,the projects need to proceed without delay. This ismeasured by expenditure proceeding against thefinancial allocation.

Fig 7.5-7

Combat and deployed ships have the greatest priority.The Defence standard is the economical balancebetween the cost of carrying stock and acceptabledelivery rates. Navy sets a higher delivery target that itachieves through supply chain efficiency.

The Logistic Support Force currently consists of thetanker ENDEAVOUR. Material support enables itprovide fuel to the fleet at sea where and when required.The period of below-target performance occurred whenthe ship was under prolonged maintenance and plannedlead-times for overseas items were exceeded.

Fig 7.5-8

The Mine Countermeasures and Diving Team and itssupport ship MANAWANUI are an operational unit andmaterial support is important to its readiness andavailability.

This graph shows improving project managementresulting in more projects meeting target dates.

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7 BUSINESS RESULTS

Fig 7.5-16

Fig 7.5-15

P$: Operational Performance Index (OPI) is the ratiobetween the cost of the personnel function and thesuccess at providing personnel readiness for each ship(OPI is at 7.5-18). Both a reduction in cost and anincrease in the OPI cause the graph to fall.

The % of RF personnel not employed in effective billets.The RENT Project is seeking ways to reduce this figurebut the growth strategy is putting more people undertraining. In the short term, growth strategies will preventthis target being reached.

The SPI assesses the extent to which support personnelashore meet rank, trade and work experience for theirpositions (1 month in the position) in support of fleetreadiness (R3) see 5.1c(3)) .

Fig 7.5-17

Fig 7.5-13

Fig 7.5-12

As for infrastructure projects, this measure is of timeagainst plans.

Fig 7.5-14

T$:TPI is the ratio between the cost of running thetraining function and the % of people across the Navywho are undertaking training. Both a reduction in costor an increase in TPI (see 7.5-19) for the same costcause the graph to fall.

Similar to infrastructure projects, Minor Capitalprocurements need to be progressed promptly whenfunding is allocated by NZDF. This is measured byexpenditure proceeding against the financial allocation.

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7 BUSINESS RESULTS

Fig 7.6-2

Fig 7.6-3

area and national. This graph combines support to allthree.

Adherence to the core values is assessed at each timeof personal evaluation. Civilians are shown separatelyas a comparison to the Regular Force results. 90% isthe lower end of the acceptable range.

The Your Say attitudinal survey has been conductedsince 2000. After the 2005 annual review it was decidedto run the survey 6 monthly to provide more up-to-datedata and this revised survey will commence in June2006.

Corporate Resilience is a ‘Your Say Survey’ measure.It is made up of a group of questions related to stress.This survey was not conducted in 2005 during whichtime a number of corrective measures have been putin place. The survey will be conducted again at a new6 monthly interval from June 2006.

Fig 7.5-18

Fig 7.5-19

Similar to Support at 7.5-17, this measures the extentto which ships’ establishments are filled by personnelwith the correct rank, trade and experience (3 monthsin the position) (R3) see 5.1c(3)).

This measures the % of people under formal training.The target band is between 18 and 22%. The graphshows an overall reduction, while the short-termvariances are caused by new intakes (rises) and theirsubsequent movement into establishment posts (falls).

7.6 Leadership and Social Responsibility

Fig 7.6-1

The short period covered by this graph results from achange in the measurement system. Communitysupport has exceeded target levels 50% of the timeand noting that December and January involves a leaveperiod. Navy has 3 communities - naval families, local

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7 BUSINESS RESULTS

Fig 7.6-5

Fig 7.6-6

The Defence OAtS Survey shows that the perceptionof RF personnel is that their senior leaders increasinglydemonstrate commitment. This is a measure ofconfidence. The Civilian results are for the whole NZDF.

This OAtS survey indicates that gender does not matterif job skills meet expectations. Results for allcomparators are high.

Commendations are awarded on merit and are formalrecognitions of behaviours and effort that support theNavy core values. In this graph the target is only anexpression of a normal level of activity by SeniorLeaders.

Fig 7.6-7

Sector Award Given By Given to When For

Human Resource Innovation Awards - KPMG RNZN 2001 Creating an inclusiveHighly Recommended workplace

Innovation Awards - KPMG RNZN 2001 Empowering andFinalist enabling our people

Initiative of the Year - Highly RNZN 2002Human Resource

Commended Akld RegionManagement

Manaaki Tangata Award NZEEO RNZN 2001

Environment Prince Gold Chemical Industry Fleet Repair Group 2001 Environmental

Prince Gold Chemical Industry Naval Armament Depot 2003 Safety

Innovation Innovation in the Public Bearing Point Navy 2005 PerformanceSector – Applicant Measurement

Business Bronze Award NZBEF Navy 2001 Progress in

Excellence Bronze Award NZBEF Navy 2003 Business Excellence

Health Accreditation Quality Health NZ Navy Hospital 2005 Quality Health Care

Trade Gold/silver (2) Medals Torque d’Or Individuals 2004 Navy members of

Competitions Bronze Medals (4) Torque d’Or Individuals 2005 NZDF Team

Tertiary Studies Top Stream Students Auckland University Individuals 2004 Electrical & Electronicof Technology Streams

Table 7.6-1 Community Participation and Awards Received

GLOSSARY - ACRONYMS

ABCANZ Australia, Britain, Canada,New Zealand

ACN(CAP) Assistant Chief of Navy (Capability)

ACN(PERS) Assistant Chief of Navy (Personnel)

AFDA Armed Forces Discipline Act

ATLAS Pay and personnel managementsystem

AUSCANNZUKUS

Australia, Canada, NZ, UnitedKingdom and United States

BPTW Best Places to Work

BPIR Business Performance ImprovementResource

C4I Command, Control, Communication,Computers and Information

CatMaNZ Manpower planning modelling tool

CCP Configuration Change Proposal

CDF Chief of Defence Force

CFO(N) Chief Financial Officer (Navy)

CLE Command Leadership Executive

CM Career Manager or Career Management

CMF Capability Management Framework

CN Chief of Navy

CO Commanding Officer

COSC Chiefs of Service Committee

COSI Chiefs of Service Informal

COSM Chiefs of Service and Minister

CPE Criteria for Performance Excellence

CSPMS Civil Staff Performance ManagementSystem

CWID Coalition Warfare InteroperabilityDemonstration

DA Defence Act

DCISS Directorate of Communications andInformation Systems and Strategy

DCN Deputy Chief of Navy

DFO Defence Force Order

DFO(N) Defence Force Orders (Navy)

DIFOTIS Delivered In Full, On Time, InSpecification

DIXS Defence Information ExchangeSystem

DNCS Director Naval Corporate Services

DNIS Director Naval Information Systems

DNx Director Naval Excellence

DOC Department of Conservation

DPMS Defence Performance MeasurementSystem

DRA Directorate of Risk and Assurance

DSI Defence Sustainability Initiative

DTA Defence Technology Agency

ECB Executive Capability Board

EEO Equal Employment Opportunity

ELT Executive Leadership Team

ESP Engineering Support Project

FAMT Fleet Activity Management Tool

FAP Fleet Activity Plan

FEC Fleet Engineering Centre

FFOS Fit for Operational Service

FISCOL Financial management sub-system ofSAP

FMP Fleet Maintenance Plan

GAP Project to ‘bridge the training gap’ fromCANTERBURY decommissioning untilPROTECTOR vessels commissioned

HNO Honorary Naval Officer

HoD Head of Department

HRM Human Resource Management

A1

GLOSSARY - ACRONYMS

HSNO Hazardous Substances andNew Organisms

HQJFNZ Headquarters, Joint ForcesNew Zealand

HQNZDF Headquarters, New Zealand DefenceForce

HQNZDF (NAVY)

Headquarters, New Zealand DefenceForce (NAVY)

IG Inspector General (HQNZDF)

IG(N) Inspector General (Navy)

ILS Integrated Logistics Support

IPCC Integrated Personnel Career Channel

IPENZ Institute of Professional Engineers ofNew Zealand

IPV Inshore Patrol Vessel

JEMS Joint Engineering ManagementSystem

JGSF Joint Geospatial Support Facility

JISA Joint Information System Agency

JIT Just In Time

LTDP Long Term Development Plan

MCC Maritime Component Commander,HQJFNZ

MCM Mine Countermeasures

MD 68 Officer and Warrant OfficerPerformance Reporting System

METLS Mission Essential Tasks Lists

MFAT Ministry of Foreign Affairs and Trade

MFish Ministry of Fisheries

MMC Maritime Military Capability

MNZ Maritime New Zealand

MoD Ministry of Defence

MOET Maritime Operational Evaluation Team

MONICAR Management of Naval IntegratedCapability Assessment Reports

MPE Master Personnel Establishment

MRV Multi-Role Vessel

NATO North Atlantic Treaty Organisation

NCO Naval Community Organisation

NLB Naval Leadership Board

NMCC National Maritime Coordination Centre

Nx Naval Excellence

Nx Tools Improvement Tools

NZBEF New Zealand Business ExcellenceFoundation

NZBR New Zealand Book of Reference(Navy)

NZCS New Zealand Customs Service

NZDF New Zealand Defence Force

NZFP New Zealand Fleet Plan

NZPP New Zealand Practice Programme

NZQA New Zealand Qualifications Authority

OAP Operational Availability Plan

OAtS Ongoing Attitude Survey

OPDEF Operational Defect

OPRES Operational Preparedness ReportingSystem

OPV Offshore Patrol Vessel

OSH Occupational Safety and Health

PA Purchase Agreement

PARIS Personnel Attrition and RetentionInitiatives Study

PDB Personnel Development Board

PDCA Plan, Do, Check, Act

PERSDEF Personnel Defect

A2

GLOSSARY - ACRONYMS

PEST Political, Environmental, Socio-culturaland Technological

R3 Right person, right place, right time

R4 R3 + Right cost

RAN Royal Australian Navy

RCN Royal Canadian Navy

RENT Re-Engineering Naval Training

RF Regular Force

RMN Royal Malaysian Navy

RN Royal Navy

RNO Resident Naval Officer

RNZAF Royal New Zealand Air Force

RNZN Royal New Zealand Navy

RNZNAD Royal New Zealand Navy ArmamentsDepot

RNZNTS Royal New Zealand Navy TrainingSystem

RNZNVR Royal New Zealand Navy VolunteerReserve

ROME Review of Master Establishment

RSN Republic of Singapore Navy

SAN South Africa Navy

SAP Financial management accountingsoftware

SAPI Systems Approach to PerformanceImprovement

SARC Safety and Readiness Check

SC Strategic Challenges

SG Strategic Goal (strategic objective)

SHEMS Safety, Health, EnvironmentManagement System

SLT Sailors Leadership Team

SNCO Senior Non-Commissioned Officer

SOCS Standard Operator Checks

SOI Statement of Intent

SOPS Standard Operating Procedures

SP Strategic Plan or Planning

SMP Strategic Management Process

SWOT Strengths, Weaknesses, Opportunitiesand Threats

TPMS Training Performance ManagementSystem

TTCP The Technical CooperationProgramme

USCG United States Coast Guard

USN United States Navy

VESA Voluntary Educational StudyAssistance

VR Volunteer Reserve

VTF Vosper Thornycroft Fitzroy Ltd

WPNS Western Pacific Naval Symposium

YSS Your Say Survey

A3

BLOC In exceptional circumstance, the CDF may grant approval for a specified period for a forceelement to maintain a lower level of capability than would be otherwise desirable. Thelowest level of military capability is BLOC, and is the minimum level at which militarycapabilities have to be held if they are not to be lost.

Branch Personnel groupings by trade or specialisation.

Command Chain Hierarchal structure by rank and position.

Combined/Coalition Any of the Services working with the military force(s) of another nation.

Divisional System System that supports well-being and morale of personnel by Branch.

DLOC To hold a force element at OLOC on a routine basis is expensive and demanding onequipment readiness and personnel availability. Accordingly, it is possible to derive thelikely time that a force element will have before it must be deployed and start operationsonce committed by Government. This time, known as Response Time (RT), can be usedto raise the level of capability of the force element from some lower level to OLOC. Oncethe actions required to generate OLOC within response time are known, it is possible toderive the level of capability that must be held by the force element on a routine basis, andthis is known as DLOC. It is this level of capability that the Navy is funded to maintain inorder to provide the Government with options for the commitment of military forces.

Force elements Ships and other formations that directly deliver outputs.

Intermediaries Other agencies e.g. NZ Police, Customs, DOC, MFAT, MFish etc.

Joint Two or more of the Navy, Army and Air Force.

Joint Effect The integrated approach that allows the value of a joint force to become more than merelythe sum of its components. The joint effect is applicable to all levels of military operations,but is predominately concerned with the harmonisation of force elements at the operationaland tactical levels.

Level of Capability Level of capability is described in four terms: Operational LOC (OLOC), Directed LOC(DLOC), Basic LOC (BLOC), and No LOC (NLOC).

Multi-agency The RNZN (and NZDF) is not the sole contributor to Defence Policy Objectives or Outcomes,or the security of New Zealand. Other Government departments and agencies alsocontribute; these other departments and agencies, under the Whole-of-Governmentapproach, are known as ‘multi-agencies’.

Navy All ships, personnel and support services of the RNZN.

Navy Orders Short-term (2 years) formal directives.

NLOC As a result of modernisation action, commissioning or decommissioning, a force elementmay not be able to achieve a level of capability. In this case it is classified at NLOC andwould not be expected to be available for military tasks.

Officer Sailor who holds an officer’s commission. Officers are senior in precedence to ratings.

OLOC OLOC is the level of capability that a force element needs to have reached in order tocarry out its military tasks effectively. For a force element to be at its OLOC for a particulartasks means that it has the requisite Preparedness state.

Platform Normally a ship (a weapons delivery Platform).

Preparedness The ability of Navy force elements to be employed on military tasks is a function of thepreparedness state in which they are held.

GLOSSARY - DEFINITIONS

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GLOSSARY - DEFINITIONS

PROTECTOR The project regarding the delivery of seven new ships over the next two years.

Rating Trade specialist and / or lower level leader / manager.

Readiness Readiness is the current proficiency and effectiveness of a force element to conduct arange of activities defined against DLOC, and provides options for employment on militarytasks within a specified response time.

Sailor Any uniformed person in the Navy regardless of rank or branch.

Single-service Either Navy, Army or Air Force.

Tri-service All three services – Navy, Army and Air Force.

WARLOC Software for measurement of ship-borne readiness and Training. To be replaced byMONICAR.

4 India Navy Suggestion Scheme (‘4I’ Chits).

D2

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