- Title page
- State sector reform legislation
- The Crown entity system
- About this guidance
- What are the monitoring department's functions?
- Appendix 1: Ministers' powers in relation to Crown entities
- Appendix 2: Central agencies' statutory responsibilities
- Appendix 3: Crown entities and accountability to Parliament
- Appendix 4: Glossary of public sector terms
C: Setting expectations and direction
The planning cycle starts with a strategy development phase, during which an effective monitoring department can add real value for the board and Minister, for example through its wider policy, sector and system perspectives. These broader perspectives can be used to inform expectations for the entity over the medium to long term.
The stages in a typical cycle are shown in the diagram below.
The new Statement of Performance Expectations (SPE) contains the annual performance information previously included in the Statement of Intent (SOI). As a result, an entity does not need to produce a new SOI every year. However, the Minister has the option of requiring a new SOI at any time. Accordingly, the monitoring department needs to advise the Minister on whether the SOI needs updating or replacing.
The CEA requires entities to assess and describe their performance, but is less prescriptive than formerly about how to do this. There is now much more flexibility for agencies to express:
- what is intended to be achieved
- how performance is to be assessed
- when performance is reported, and
- where performance is reported.
Requirements such as "set out the specific impacts, outcomes or objectives" an entity seeks to achieve and words such as "measures and standards" have been removed. Entities have many frameworks and methods to choose from that can assist in demonstrating performance. These include: the Investment to Outcomes model; case studies; and special assessment models.
See this section of the Guide for Ministers pages for a discussion of what Ministers should be able to expect from their department on SOIs and SPEs.
A department will advise and support its Minister and the entity through the planning processes shown in the Figure below.
Engagement, for example through a letter of expectations, which triggers a conversation between the Minister and board chair:
Statement of Intent
Annual Statement of Performance Expectations
Source: Ministry for Culture and Heritage
The key levers that the Minister can use in the direction-setting process are shown below.