Cabinet decides to locate relevant services in a particular agency (possibly a new vehicle) to get best joined-up service delivery.
The basics
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When to use this tool
- Service provision is the most important way to group/divide agencies
- The service can be easily separated from and transferred to another agency
- The problem justifies significant disruption, upfront cost, and potential exit costs
- Where the problem involves organisations other than departments (for example, Crown entities) the functions are able to be transferred into another entity
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How to agree goals/outcomes
- Cabinet decision
- Order in Council
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Governance model required
- Department
- Business unit
- Branded business unit
- Departmental agency
- Interdepartmental venture (between partner agencies)
- Crown entity
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Ministerial relationships required
- Usually a separate minister
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Incentives required
- Annual reporting and audit under Public Finance Act 1989
- Ministerial accountability
- Recognition for CE
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How to manage the funding
- Separate appropriation
About this model
A new organisational model (the interdepartmental venture) was established through the Public Service Act 2020 as an option for strengthening joint working arrangements. This model makes relevant public service chief executives jointly responsible to the appropriate minister for the operation of the venture. This model was created because Public Service departments are not distinct legal entities but separate administrative units of the same legal entity (the Crown). No interdepartmental ventures have yet been established.
Case Study: Whaikaha Ministry of Disabled People
This new ministry is a departmental agency hosted by the Ministry for Social Development that initially brings together the Office for Disability Issues (from MSD), the Disability Services Directorate (formerly in the Ministry of Health) and the work underway in several parts of New Zealand to implement a Mana Whaikaha/Enabling Good Lives approach, where people living with disabilities are able to determine the support they need. Over time it will increasingly take a leadership role on strategic disability policy across government.
Whaikaha will have ongoing arrangements to ensure its work remains driven by people with disabilities (the ‘nothing about us without us’ principle of Enabling Good Lives).