Part One – Our Strategy and Performance in 2008/09

In this section

Section One – Strategy, Environment, Leadership, Risks and Organisational Capability

(a) Strategy

The Ministry’s strategy for the 2008 financial year incorporated three intermediate outcomes and seven strategic priorities.3 Following the election in November 2008 the Ministry’s strategy reflected the priorities of the National-led Government. This report therefore includes Ministry performance relating to the current Government’s goals and priorities for the period December 2008 to 30 June 2009.

The core of the Ministry’s strategy is to support a vibrant, sustainable and productive arts, culture and heritage sector. This requires the active participation of artists, audiences, cultures, enterprises and communities. Active participation is supported by quality cultural experiences and cultures in New Zealand that are visible and accessible – to New Zealanders and international audiences. Therefore, the initiatives and services supporting Ministry’s strategy in 2008/09 emphasised:
enhancing the visibility and accessibility of culture and cultural experiences
providing policy leadership to arts, culture, heritage sector; broadcasting, sport, Government and local authority organisations
supporting and monitoring the good governance, sustainability and value for money of funded entities
protection of New Zealand’s cultural heritage

The following strategy map is an overview of how the Ministry’s services provided in the reporting period supported medium and long term goals.4

Strategy Map

3 For further details see pages 8–10 of the 2008 Statement of Intent
4 For further details see pages 6–9 of the 2009 Statement of Intent

(b) Operating environment

Several key trends influence the participation in and funding of arts, culture and heritage activities and, consequently, the Ministry’s strategy:

greater cultural, ethnic, population and community diversity. These changes boost demand for greater diversity and customisation of cultural experiences. This trend supports the continued focus on increasing the use of the Ministry’s online cultural resources, targeting audiences and audience contribution.
an adverse economic and fiscal outlook. This affects the availability of funding for artists and cultural organisations and threatens the development of high quality local cultural content. It also underlined the need to ensure that government funded cultural initiatives provide value for money, stimulate demand for cultural activities and are being delivered by cultural organisations that are sustainable in the long term.
increasing demand for history, culture and heritage experiences. Taking advantage of growing demand for information about New Zealand’s history, people, land, culture and heritage was a priority for the period. Therefore, both reaching a wider audience and ensuring access to national heritage sites were a key focus for the delivery of heritage services.
realising the potential of Māori. Māori culture is a key foundation from which Māori develop their potential economically and socially. To enhance the Ministry’s contribution to realising the potential of Māori, a number of initiatives were implemented aimed at developing the Ministry’s capability to engage confidently with Māori.
the increasing visibility of New Zealand’s culture internationally. Accessing opportunities to promote New Zealand’s identity overseas and advance diplomatic, cultural and economic priorities in key regions continued to be a focus for the cultural diplomacy programme and for NZlive.com, the Ministry’s guide to cultural activity in New Zealand.
rapidly changing online and digital technologies. Managing the transition from analogue to digital television was a priority during the period, with the establishment of an industry-government steering group. Research and analysis was also begun to consult with regional television broadcasters in a fully digital environment.
We expect that these trends will continue to influence the Ministry’s strategy for the next three years.

(c) Sector leadership and research
Providing increased leadership to the sector became an explicit priority for the Ministry following the election. A sector with a clear sense of direction will be better positioned to realise its social and economic contribution to New Zealand. The Ministry’s sector leadership role includes leading policy development, encouraging good governance in the sector, coordinating cross sector initiatives, facilitating consensus on direction and strategy, supporting the increased contribution of Māori and Māori culture, and communicating the social and economic value that cultural activity contributes to the country.
During 2008/09, several work programmes supported the Ministry’s sector leadership role. The operating performance of these programmes is reported in Section Two.
Supporting the Ministry’s sector leadership activities is its programme of research. This informs:

the development of strategy and cultural initiatives
investment in the sector
communicating the social and economic contribution of cultural activities.

The Ministry uses twenty-four cultural indicators to monitor trends in the contribution of cultural activity to the New Zealand society and economy. The cultural indicators are supplemented by targeted research on key producer, consumer and community arts, culture and heritage related influences and trends.

In 2008/09 the Ministry published targeted research on:

Research report	Selected findings
How Important is Culture? New Zealanders’ Views in 2008 – An Overview.	In 2008 there are now more people who strongly agree that: Māori culture and activities are an important part of New Zealand’s national identity (up from 45% in 1997 to 62% in 2008) Culture and cultural activities have a high profile in NZ (up from 23% to 38%) Cultural activities should receive some funding from Government (up from 37% to 49%) information about culture and cultural activities is readily available (up from 23% to 33%).
Employment in the Cultural Sector 2009 – Ngā Mahi ki te Taha Tikanga ā-Iwi.	Between 2001 and 2006: The number of people in paid cultural employment increased by 21 percent, compared with an increase of 15 percent in total employment There was a 26 percent increase in employment in cultural occupations and an 18 percent increase in employment in cultural industries The cultural industries accounting for the most growth were preschool education, architectural services, religious organisations and interest groups.
Demand for Cultural Tourism – Update 2008	Interest in cultural tourism products was generally strongest amongst visitors from the United Kingdom, Germany and North American markets Interest in cultural tourism products was typically stronger amongst female visitors than males Interest in cultural tourism products was most evident amongst the older age groups (45 years +).

(d) Risks

The Ministry’s 2008 Statement of Intent identifies the main risks to the Ministry’s sustained performance. Overall, none of the identified risks to the Ministry’s total performance adversely influenced ongoing performance during the year. The impact on Ministry performance of each risk during 2008/09 was as follows:

Risk	Action Taken
Failure to maintain the quality of policy advice, monitoring and other services to Ministers	Sustaining the confidence of some stakeholders in the quality of policy advice was a challenge during the period. The Ministry sought Ministerial and independent feedback on improving the quality of policy advice and has implemented initiatives to address this risk, including a programme of training, mentoring and peer review.
Loss of reputation for reliability and accuracy of Ministry-developed digital resources	The Ministry received no challenges to the accuracy of its digital resources for the period.
Performance failure at a funded agency	Through a programme of funded entity reviews and performance monitoring the Ministry proactively identified and addressed any risks to entity performance.
Failure to understand or meet the requirements of users of Ministry online resources	The growth in visitors to the Ministry’s online resources and more user generated website content signified that the Ministry continued to understand and meet the needs of users.
Failure to maintain and develop effective networks and robust processes for consultation with stakeholders	As part of its on-going operations the Ministry conducted a number of consultation and feedback exercises with stakeholders.
Major technology failure	The Ministry’s technology platforms and related development projects continued to provide service improvements without significant disruption to normal operations.

(e) Developing organisation health and capability

The Ministry’s five-year organisational health and capability strategy is to sustain the continuous improvement of systems, processes, people, leadership and culture.5 In 2008/09 the Ministry’s initiatives focused on enhancing organisation efficiency, developing leadership capability, strengthening the professional development of staff, developing the internal culture and fostering strong relationships with stakeholders.

Organisation health and efficiency

The organisation health and efficiency objectives, performance measures and actual performance for 2008/09 are:

Objective	Measures	Actual performance
*Organisation health*
The Ministry is considered a desirable place to work (a responsive, productive and focused work culture)	Employee engagement rates	2007/08 – 3.7 out of 5 2008/09 – 4.03 out of 5 (79th NZ Public Sector percentile)
	Average length of service	2007/08 – 3.7 years 2008/09 – 4.3 years
	Average age of staff (proxy measure for staff experience)	2007/08 – 42 years 2008/09 – 43.3 years
*Organisation efficiency*
Average staff cost per output – Total direct salary costs divided by direct staff numbers	Monitor the costs of producing outputs in relation to quality and resources required	2007/08 – $70,386 2008/09 – $80,456
Ratio of staff full-time equivalent (FTE) engaged in output production to corporate support		2007/08 – 3.7: 1 2008/09 – 3.2: 1
Personnel expenses per FTE (whole of Ministry) – Total personnel costs divided by FTE staff numbers		2007/08 – $78,442 2008/09 – $73,890

Overall, these measures indicate that:

the Ministry’s organisational development programmes have had a positive impact upon employee engagement and work culture
the Ministry has staff with sufficient experience to effectively contribute to overall performance
the Ministry’s corporate support activities are being provided at decreasing cost.

Developing capability
The development of staff capability in 2008/09 focused on developing future leaders, increasing staff engagement, professional development of managers and equipping staff to liaise effectively and confidently with Māori. Progress on capability development initiatives either implemented or continued from 2007/08 were:

Initiatives	Actual performance
Continued implementation of the Ministry’s leadership development programme	The Ministry’s Leadership Development Programme for 2nd tier managers has comprised in-house training, external seminars and action learning groups. The programme included developing leadership teams, coaching and engaging with Maori. At an individual level 2nd tier leaders have identified specific learning opportunities to enhance their leadership capability.
Implement staff engagement survey	The results of the April 2008 Engagement Survey were one input in the Ministry’s 2008/09 organisational development plan. The Ministry ran its second Gallup Staff Engagement Survey in March/April 2009. The Ministry’s scored significantly higher in its 2009 ‘Engagement Scorecard’. (For details see Organisation health and efficiency table on page 10)
Expand the professional development programme	The in-house professional development programme for 2008/09 included our regular project management and communications type courses. This year we also introduced a Machinery of Government course that was well subscribed and regarded. As part of enhancing the Ministry’s ability to engage with Māori, the Ministry’s leadership team completed a te reo and mihimihi course and up to 25 staff completed a very successful tikanga course.
Develop a programme to ensure that the Ministry is equipped to liaise effectively and confidently with Māori	The Ministry’s Māori Engagement work programme was finalised during 2008/09 and overseen by a Steering Committee. A part-time Māori Adviser (Pou Arahi Whakahaere) position was established to implement the work programme and a tikanga specialist engaged. A set of competencies focusing on knowledge of Māori culture and language, incorporating Māori engagement into team and project management, and relationship management, were developed. These competencies then informed the training and development priorities for 2008/09 and 2009/10. Consultation/Engagement guidelines were developed to support staff when planning work that may relate to Māori.

Section Two – Operating Performance

The Ministry’s operating performance for 2008/09 covers the initiatives contained in the Operating Intentions section of the 2008 Statement of Intent (pages 11–21).
The measures of operating performance cover the economy, efficiency and effectiveness of the Ministry’s services, specifically:

economy – how well we managed our people, money and assets (inputs)
efficiency – how efficient we were in delivering outputs (quantity) and meeting our service delivery standards6 (quality) during the year
effectiveness – the impact of our services.

The combined operating performance measures, outcome indicators and cost effectiveness measures (Section Three) provide the foundation for assessing value for money.

Appropriation: Heritage Services

This appropriation has a value of $5.750 million, which was invested in three key initiatives - Publishing New Zealand History, Te Ara – The Encyclopedia of New Zealand and the protection and promotion of symbols of nation, movable cultural heritage, historic graves and memorials. These initiatives support outcome one – the diversity, visibility and accessibility of our culture, and participation in cultural experiences, are enhanced.

Initiative One – New Zealand History services: Research and produce information about New Zealand history online (www.NZHistory.net.nz), print and in other media.

New Zealand History Services Operating Performance – Economy and Efficiency Measures 2008/09

Measures	Actual performance 2008/09
Output Costs (including overhead loading)
Oral history interviews :	From Memory (War Oral History Programme): the remaining 10 interviews with veterans of J Force were completed in preparation for work on the book drawn from the interviews; one further interview for the From Memory oral history collection was completed. Vietnam War Oral History Project: a further 22 interviews were conducted with veterans of the Vietnam War and their family members.
Project timeliness:	The History Group met its project deadlines for most projects. The addition and completion of the unplanned 28th Māori Battalion website project (http://www.28maoribattalion.org.nz/) resulted in resources being diverted from other web projects which were delayed until resource became available.

6 For the Ministry’s Statement of Service Peformance see Part Four of this Annual Report

Measures	Actual performance 2008/09
Service performance	All standards of service performance were met during the period. For details on the standards of service performance see Part Four, Section Five Statement of Standards and Service Performance.
Site visitors (unique visitors)
Target audiences – Schools (proxy measure)	Reliable and direct measures of visitors from schools to NZHistory.net are not possible. An indirect measure is the effect of school holidays on visitors to the site. On average, visitors to the site fall approximately 40% during school holidays.
Change in unique visitors:	Unique visitors (unique browsers) increased 29% from the previous year (2008 – 766,107; 2009 – 990,517).
Page views

Measures	Actual performance 2008/09
Change in page views	Page views increased 17% from 2008 (2008 – 4,268,091; 2009 – 5,013,412).
New content	Seventeen new features were added to Nzhistory.net.nz and a new website published for the 28 Māori Battalion (http://www.28maoribattalion.org.nz/).
New and reprinted publications	Works published: The history of C Company, 28 Battalion Māori A guide to the National War Memorial. Delivered to the publisher: The text of the collection of war-related material was completed and the manuscript The text of the history of the Office of the Auditor General was completed and delivered to the publisher The text of a history of civilian life in NZ during the Second World War, based on oral history interviews, was delivered to the publisher. Near completion or book production: The first of the reprinted editions of books of interviews with Second World War veterans appeared, and final production work on another completed The text of the Vietnam War combat and medical history was completed and book production commenced.

Initiative Two – Reference Services: Publish an online encyclopedia and reference works on New Zealand’s people, land, culture and society (www.TeAra.govt.nz)

Reference Services Operating Performance – Economy and Efficiency Measures 2008/09

Measures	Actual performance 2008/09
Output Costs (including overhead loading)
New and accurate content	One additional theme had been completed. Three new regional entries (Southland, West Coast and Otago) were launched, and Hawkes Bay was completed. One publication from Te Ara – The Encyclopedia of New Zealand online content was completed (Māori tribes of New Zealand).
Timeliness of the publication of each theme	The fifth theme of Te Ara – the Encyclopedia of New Zealand, entitled ‘Economy and the City’, was well advanced by the end of June 2009. By that time 84 of a planned 101 entries had been received, and 77 had been checked. A further 73 had been allocated resources and 63 had been edited. 48 entries had been gone through production and design stages. 105 entries were selected for Theme 6, entitled Social Connections, and most had been commissioned by the end of June.
Publications from Te Ara content	2 books were being prepared for publication at 30 June 2009: “New Zealanders and the Sea”, consisting of 34 maritime entries from the second theme of Te Ara “Te Taiao – Maori and the Natural World”; it will include 27 entries on Maori topics from the second and third themes of Te Ara.

Reference Services Operating Performance – Effectiveness (Impact) Measures 2008/09

Measures	Actual performance 2008/09
Site visitors (unique visitors)
Target audiences – Schools (proxy measure)	Reliable and direct measures of visitors from schools to NZHistory.net are not possible. An indirect measure is the effect of school holidays on visitors to the site. On average, visitors to the site fall approximately 40% during school holidays.

Measures	Actual performance 2008/09
Change in unique visitors	Unique visitors (unique browsers) increased 15% from the previous year (2008 – 1,609,994; 2009 – 1,857,483).
Page views
Change in page views	Page views increased 11% from 2008 (2008 – 9,933,868; 2009 – 11,055,385).
Visitors per day	Average visitors per day continued to increase for the period from an average of 7,500 visitors per day for the period July to December 2008, to 10,800 visitors per day for the period January to June 2009.
Service performance	All standards of service performance were met during the period. For details on the standards of service performance see Part Four, Section Five Statement of Standards and Service Performance.

Initiative Three New Zealand Heritage Services: Protection and promotion of symbols of nationhood, movable cultural heritage, historic graves and memorials

New Zealand Heritage Services – Economy and Efficiency Measures 2008/09

Measures	Actual performance 2008/09
Output Costs (including overhead loading)
Service performance	All standards of service performance were met during the period. For details on the standards of service performance see Part Four, Section Five Statement of Standards and Service Performance.

Heritage Operations Services – Effectiveness (Impact) Measures 2008/09

Measures	Actual performance 2008/09
*Protection of movable cultural heritage*
New found Taonga notified to the Ministry
Collectors registered by the Ministry

Measures	Actual performance 2008/09
Permanent and temporary export of items of cultural heritage
*Use of cultural heritage (proxy measures)*
Visitors to National War Memorial (Wellington)

Appropriation: Policy Advice and Monitoring of Funded Agencies

This appropriation has a value of $6.986 million which was invested in services and initiatives for:

providing policy advice on arts, culture and heritage and broadcasting issues;
monitoring the Crown’s interests in sector agencies; and
providing negotiated services to the Minister for Arts, Culture and Heritage and the Minister of Broadcasting.

Arts, Culture and Heritage Policy Advice – Economy and Efficiency Measures 2008/09

Measures	Actual performance 2008/09
Output Costs (including overhead loading)

Measures	Actual performance 2008/09
Negotiations with with the Office of Treaty Settlements and Iwi claimants on the negotiation of Taonga Tūturu Protocols as part of the cultural redress section of historical Treaty of Waitangi settlements	The Ministry also held negotiations with the following iwi: Te Arawa (River); Ngāti Raukawa (River); Ngāti Makino; Ngāti Waitaha; Ngāti Porou; Ngāti Pahauwera (3 iwi); Te Rarawa; Ngāti Apa; Kurahaupō (3 iwi); Taranaki-Tainui (4 iwi); Turanganui-a-kiwa (3 iwi); Ngāti Whare; and Ngāti Manawa
Service performance – Policy	Most standards of service performance were met during the period. For details on the standards of service performance see Part Four, Section Five Statement of Standards and Service Performance.

Service One: The provision of policy advice on arts, culture, and heritage issues – including legislation, major policy proposals and developments of significance in the sector.

During the year the Ministry provided policy advice on arts, culture, and heritage issues – including legislation, major policy proposals and developments of significance in the sector as follows:

Kerikeri Heritage bypass
Advice on regional Museums Policy
Co-production film agreements with South Africa, India, China and Thailand and respond to the UK review
New Zealand’s accession to UNESCO’s Hague Convention on the Protection of Cultural Property in the Event of Armed Conflict
Scoping of issues relating to the repatriation of taonga
Evaluation of the effectiveness of the ‘Policy for Government Departments’ Management of Historic Heritage’
Support specific historic heritage projects – Queen Mary Hospital, Hanmer
Engagement with local authorities and government cultural agencies relating to the cultural well-being purpose in the Local Government Act 2002
Development of cultural indicators
Employment in the Cultural Sector – published the latest edition of the Employment in the Cultural Sector report, based on data from the 2006 Census, in February 2009
Review of the Historic Places Act 1993
Review of the Waitangi National Trust Board Act
Preparation of Relationship Instruments as part of Foreshore and Seabed Settlements
World Heritage sites tentative list
Cultural tourism.

Service Two: Supporting other agencies cultural outcomes (Cross-government support)

During the year the Ministry provided policy advice in support of other agencies’ cultural outcomes as follows:
Media use research – A research project involving the Ministry and Te Puni Kōkiri surveying New Zealanders’ use of new and traditional media was published
Joint Storage for National Collecting Agencies
Development of free trade agreements
Development of Taonga Tūturu Protocols as part of Treaty Settlements – The Ministry continued to work with the Office of Treaty Settlements, and Iwi claimants on the negotiation of Taonga Tūturu Protocols as part of the cultural redress section of historical Treaty of Waitangi settlements. In this time the Ministry established Protocols with: Te Roroa, Waikato-Tainui and Te Pumatanga Trust
Crown land disposals – The Ministry and Historic Places Trust were consulted on the review of the Crown Land disposal process by Land Information New Zealand.

Service Three: Securing the effective delivery of public service broadcasting and local content in a multi-platform environment:

Broadcasting Policy Advice – Economy and Efficiency Measures 2008/09

Measures	Actual performance 2008/09
Output Costs (including overhead loading)
Service performance – Broadcasting	All standards of service performance were met during the period. For details on the standards of service performance see Part Four, Section Five Statement of Standards and Service Performance.

(a) Transition to digital television – management of the analogue switch-off
The Ministry provided advice on the membership of a joint industry/government steering group to guide the switch-over to digital television (DSO), as agreed by the previous government. Agencies represented on the group were advised of the final decisions on the group’s membership and meeting arrangements for the group were set in train. Two meetings of the group had been held by the end of the period, at which the group established its operating procedures and began the selection of an Executive Director. Work was begun to measure take-up of digital television and apply forward projections. This will assist the group in making recommendations to government about the timing for digital switchover.

(b) Management of the digital broadcasting review of regulation
Following a decision to not proceed with a full competition study of the broadcasting market, the Ministry and MED officials completed an analysis of information provided in submissions to the previous government’s Regulatory Review of Digital Broadcasting. Work was begun on options for regional television broadcasters to transition to digital transmission, in coordination with MED’s work on a proposal for post-DSO spectrum allocation.

(c) Review of the TVNZ Charter
A Cabinet paper was prepared securing policy agreement for a TVNZ Amendment Bill to replace the Charter with more general statutory functions, and to enable the re-screening of pre-1989 TVNZ archived works. Advice was provided to the Minister on the nature of those functions, and on the details of the scheme to allow TVNZ to re-screen the pre-1989 works while compensating rights-holders. At year’s end drafting instructions for the bill were in preparation. Advice to the Māori Affairs Select Committee was provided on the possible impacts on Māori content of the Charter’s repeal. The potential implications of Treaty claim (WAI262) for both the Charter repeal and the archived works scheme were discussed with the Crown Law Office, MED and Te Puni Kōkiri.

(d) Development of options for public service broadcasting funding and local content diversity
Advice was provided on options for enhancing contestable funding through NZ On Air, in replacement of funding previously ring-fenced for TVNZ to assist in meeting its Charter obligations. This resulted in the establishment in April of NZ On Air’s Platinum Television Fund, of $15.1 million per annum. The criteria for and monitoring of the Fund are designed to ensure it delivers high quality public broadcasting programmes that are widely visible and accessible by New Zealand audiences.

(e) Strengthened performance expectations for chartered broadcasters and funded agencies in a multi-platform environment.
The Ministry provided advice on the contents of a new Broadcasting Work Programme for 2009–12, to replace the Programme of Action published by the previous government. By year’s end a Cabinet paper had been prepared proposing that the Programme be agreed to and published.

Service Four: Monitoring of arts, culture, heritage, broadcasting and sport funded agencies:

(a) Develop and maintain programmes to enhance the governance, performance and operational capability of funded agencies

Funded Agency Monitoring – Economy and Efficiency Measures 2008/09

Measures	Actual performance 2008/09
Output Costs (including overhead loading)
Currency of Governance e-manual	E-newsletters with relevant updates for board members were published and one information memorandum was sent to all board members. A Governance e-manual developed for arts, heritage, broadcasting and sport board members was maintained on-line at http://www.mch.govt.nz/agency/boards/governance-manual.html.
Induction programme workshops held	The Ministry held three workshops for new board members.
Service performance – arts, culture and heritage funded agencies	All standards of service performance were met during the period. For details on the standards of service performance see Part Four, Section Six Statement of Standards and Service Performance.
Service performance – public broadcasting funded agencies	All standards of service performance were met during the period. For details on the standards of service performance see Part Four, Section Six Statement of Standards and Service Performance.
Service performance – sports funded agencies	All standards of service performance we met during the period. For details on the standards of service performance see Part Four, Section Six Statement of Standards and Service Performance.

Funded Agency Monitoring – Effectiveness (Impact) Measures 2008/09

Measures	Actual performance 2008/09
*(a) Enhancing funded-agency governance*
Number of ‘board ready’ candidates available for nomination	The Ministry maintains a database with 900 entries for potential Board members at year end. This notes the various levels of board experience of the candidates.
Board appointments	The Ministry provided advice to Ministers appointing to arts, heritage, broadcasting and sport Crown entities on vacancies, competencies sought, and strategic issues including board succession planning.
Board Performance	Most funded agencies completed a board self-evaluation, and issues identified through these evaluations are being used to inform advice on future appointments as well as the governance support programme in 2009/10.
Board induction programme feedback	Positive feedback from board members attending workshops was received.
*(b) Developing funded-agency capability*
Board Chairs’ satisfaction with best practice support provided by the Ministry	Two workshops were held for funded agency chairs and chief executives as part of the CEO/Board relationship: Maximising the Partnership programme. An assessment of the impact of our governance work has been taken place by an independent consultant, who conducted in-depth interviews with a sample of agency chairs. Their overall rating was ‘very good’, the highest of the options given. All comments made have been reviewed and considered to ensure they can be positively addressed in 2009/10.
Positive feedback on support programmes	The Ministry has received positive comments on the support provided.
Greater Ministerial confidence in agency performance	Generally, Ministers have not raised concerns with the Ministry regarding agency capability to deliver current and future services.
*(c) Implementation of the broadcasting charter evaluation framework*
TVNZ reported against the agreed charter evaluation framework for the first time in its 2008 Annual Report.

Service Five: Development of the cultural portal www.NZLive.com:

NZLive.com – Economy and Efficiency Measures 2008/09

Measures	Actual performance 2008/09
Output Costs (including overhead loading)
Service performance	All standards of service performance were met during the period. For details on the standards of service performance see Part Four, Section Five Statement of Standards and Service Performance.

NZLive.com – Effectiveness (Impact) Measures 2008/09

Measures	Actual performance 2008/09
Nation-wide events information	NZLive.com has between 3,000 and 3,500 (up from 1500-2000 in 2008) events and attractions on the site at any one time. Events are from across the country and reflect a diverse range of cultures and interests.
Breadth of cultural content	NZLive.com has published more than 60 articles and hundreds of news items about New Zealand culture in the last year.
Site visitors (unique visitors)
Change in unique visitors	Unique visitors (unique browsers) increased 26% from the previous year (2008 – 787,565; 2009 – 994,419).

Measures	Actual performance 2008/09
Number of return visitors	Numbers of return visitors have increased by 41% since the previous period.
Visitors to the Cultural Funding Guide	Visits to the Cultural Funding Guide have increased by 55% since 2007/08.
Page views
Change in page views	Page views increased 10% from 2008 (2008 – 2,442,476; 2009 – 2,684,180).
Directory of organisations	The number of cultural organisations profiled (subscribed) has continued to rise with 650 organisations listed in June 2009 compared to 518 in June 2008.
Range of channels used to market the website	NZLive.com has developed a strategic relationship with Tourism New Zealand to share events, content and resources, to gain maximum exposure for New Zealand culture and cultural organisations. Around 37 websites use NZLive.com content on their sites by taking RSS feeds.

Appropriation: Cultural Diplomacy International Programme

This appropriation has a value of $1.897 million which was invested in the management and delivery of an International Cultural Diplomacy Programme (CDIP) through a series of projects and activities primarily focused on Asia and in particular North Asia.
The CDIP emphasises growing an understanding of and engagement with New Zealand internationally as a means of supporting New Zealand’s economic interests.

Cultural Diplomacy International Programme – Economy and Efficiency Measures 2008/09

Measures	Actual performance 2008/09
Output Costs (including overhead loading)
Contract budget performance	All approved projects were delivered on time and within budget.
Contracts for each activity incorporate clear milestones and evaluation	All contracts incorporated clear milestones and evaluation.
Service performance	All standards of service performance were met during the period. For details on the standards of service performance see Part Four, Section Five Statement of Standards and Service Performance.
Projects delivered	Support for the Prime Minister’s visit to China and the opening of the NZTE business centre in Shanghai Support for the Royal New Zealand Ballet’s tour to China Shanghai Tourism New Zealand Promotion Major trade promotion focus activities in Korea Contemporary Music and associated leveraging activities in Taipei Manila New Zealand Festival Bangkok Film Festival Jakarta Film Festival Singapore New Zealand Festival.

Cultural Diplomacy International Programme – Effectiveness (Impact) Measures 2008/09

Measures	Actual performance 2008/09
Quality of audience (key contacts)	All audiences included key contacts.
Audience and visitor feedback	Positive feedback was received from audience and visitors.
Feedback from diplomatic posts and from offices of Tourism New Zealand and New Zealand Trade and Enterprise	Positive feedback was received from New Zealand’s agencies (e.g. diplomatic posts) offshore.
Breadth and depth of media coverage	There was significant coverage of key projects across a range of media e.g. internet, television, print media.

Section Three – Progress Towards Outcomes in 2008/09

Outcome Indicators are the key five-year trends that illustrate progress towards the Ministry’s outcomes and are the result of the combined impact measures for the Ministry’s initiatives and services.7
Outcome indicators describe the expected contribution of the Ministry’s initiatives and services to progress towards each outcome and answer the question ‘What difference are we making?
The Ministry assesses outcome indicator trends annually using combined impact measures on a “weight of evidence” basis. Longer-term progress (3–5 yr) is subject to formal evaluation.

Outcome One

“The diversity, visibility and accessibility of our culture, and participation in cultural experiences, are enhanced.”

Outcome one emphasises both the diversity and visibility of New Zealand’s culture and participation by New Zealanders and international audiences in New Zealand cultural experiences.

Appropriations: Heritage Services; Policy Advice and Monitoring of Funded Agencies.

Key Initiatives: Making New Zealand history accessible; providing New Zealand cultural experiences, resources and information online; safeguarding New Zealand’s heritage; advising government.

Outcome progress
The key progress indicator for Outcome One is ‘more people accessing more cultural information or experiences more often’. This indicator is measured through the Ministry’s day-to-day operations – for example, use of the Ministry’s digital resources through its websites www.TeAra.govt.nz (The Encyclopedia of New Zealand), www.NZLive.com and www.NZHistory.net.nz. The actual and desired trends for this indicator are:

Key indicator for Outcome One	Desired (target) trend	Assessed trend 2008/09
More people accessing more cultural information or experiences more often
Impact measures contributing to this indicator: Site visitors, page views, additional content, breadth of content, return visitors, events listed, marketing channels, visitors per day, target audiences reached.	Legend: Increasing trend

Monitoring cost-effectiveness
Of the three Ministry outcomes, Outcome One offers the most potential for measuring cost-effectiveness, particularly in relation to the online delivery of digital cultural resources. In this area the Ministry gathers extensive performance information on the use of its online resources. The following table shows the initial cost-effectiveness measure we have developed for Outcome One and the assessed actual trend for 2008/09

7 Performance against Impacts is reported on Section Two – Operating Performance

Cost- effectiveness indicator	Description	Target / desired 5yr trend	Assessed Actual trend 2008
Content cost per user for the Ministry’s websites	As audiences access more online materials, the cost of producing the information is allocated over more users so the cost per user decreases. This indicator is most relevant where the number of visitors and the level of engagement are significant. Visitor data such as number of visits, length of stay, and number of pages viewed provide indicators of the user’s cultural experience.
			Contributing measures
			Average number of visits 2008/09* up 18%
			Average Page views 2008/09* up 11%
			Output Costs (including overhead loading) 2008/09 up 3%
Legend: Decreasing trend: Increasing trend: * www.TeAra.govt.nz; www.NZLive.com; www.NZHistory.net.nz;

As the Ministry’s data-gathering capability increases, we will continue to develop cost-effectiveness measures where appropriate.

Outcome Two

“The programmes, services and products of funded agencies are of high quality and widely accessible.”

Appropriations: Policy Advice and Monitoring of Funded Agencies; Purchasing Advice and Monitoring of Sport and Recreation Crown Entities.

Key Activities: Monitoring of the government’s interest in cultural organisations, arts, heritage, broadcasting and sports agencies. The Ministry’s initiatives for Outcome Two also support:
Value for money for the government’s investment in cultural agencies
Ministerial confidence in funded-agency performance.

Outcome progress
The key progress indicators for Outcome Two are funded agencies’ performance, quality of funded-agency programmes and target audience participation in funded-agency programmes. The third indicator will draw on information from the Ministry’s and funded agencies’ operations and will be reported in 2009/10 when there is sufficient data to assess on an annual basis. The desired trends for the indicators for Outcome Two are:

Key indicators for Outcome Two	Target / desired 5yr trend	Assessed trend 2008/09
Funded agencies’ performance (Governance)
Quality of funded-agency programmes (Capability)
Target audience participation in funded-agency programmes		To be reported for 2009/10
Impact measures contributing to this indicator: Number of ‘board ready’ candidates available for nomination, board appointments, board performance; Board induction programme feedback; Board Chairs’ satisfaction with best practice support provided by the Ministry; Positive feedback on support programmes; Greater Ministerial confidence in agency performance.	Legend: Increasing trend

Outcome Three

“The value and contribution of culture to New Zealand’s social, environmental and economic well-being is recognised.”

Appropriations: Policy Advice and Monitoring of Funded Agencies; Cultural Diplomacy International Programme.

Key Activities: Advising government and other agencies; promoting New Zealand’s cultural presence internationally.

Outcome progress
The key progress indicators for Outcome Three are an appreciation of New Zealand’s strengths, products and services in key regions offshore, and other agencies seeking Ministry input to their work. These indicators draw on the operating performance impact measures from the Ministry’s CDIP operations. The actual and desired trends for the Outcome Three indicators are:

Key indicators for Outcome Three	Target / desired 5yr trend	Assessed trend 2008/09
Appreciation of New Zealand’s strengths, products and services in key regions offshore
Other agencies seeking Ministry input to their work
Impact measures contributing to this indicator: Quality of audience (key contacts); Audience and visitor feedback; Feedback from diplomatic posts and from offices of Tourism New Zealand and New Zealand Trade and Enterprise; Breadth and depth of media coverage; Ministry’s contribution to other agencies outcomes.	Legend: Increasing trend

Annual Report 2009