Summary
In summary, while progress has been made in the right direction, significant change is required for the Treasury to be able to fully realise its leadership contribution to New Zealand's economic strategy and the State sector Better Public Services strategy...
The Treasury is at a critical point in the repositioning of the organisation under its new leadership, which, if not addressed, will create real risk for the organisation. The leadership has a clear vision for the future but has yet to implement it. There is therefore still a strong disconnect between the leadership articulation (internally and externally) of the vision and intent the Treasury has for New Zealand and the State services, and the actual frontline delivery.
The new medium-term economic strategy work provides a very positive platform for the future. However, it must be translated into real policy, be integrated into the organisation and used as a lens to prioritise, focus, and draw conclusions. The new 'higher living standards for New Zealanders' framework has the potential to be very powerful but at the time of the review it is underutilised and significant work is required to embed it into the organisation and use its logic to drive the Treasury prioritisation internally and externally.
The Treasury to date has 'reserved its position' in regard to its future role and accountabilities in the Corporate Centre. It needs to step up to this new configuration and recognise it as the new operating paradigm for the State sector which it needs to lead from the front.
To deliver on these challenges the Treasury must address its role and operating model in the new State sector context, realign the deep 'DNA'/culture that underpins its current modus operandi, and redefine and develop capability to support the new operating model.
The challenge in this is not to be underestimated and the CEO and ELT will require the appropriate support and expertise to assist them to achieve this. However, the prize will be worth it for New Zealand and the leadership of the Treasury (CEO and ELT) are committed to deliver on this challenge. Further, external stakeholders are also committed to supporting this transformation and the current leadership of the Treasury. Increased urgency is required to drive this transformation to mitigate the risk associated with a change programme of this magnitude.
