Driving improved value for money in the New Zealand public sector

Abstract

The new, National-led government is seeking a significant lift in productivity and economic growth. Raising the performance of the public sector is central to achieving such an objective. In our view, improving public sector performance is unlikely if we rely solely on the management tools and approaches introduced some 20 years ago. Nor will periodic budget cuts and reductions in ‘back office’ resources result in the level of improvement desired (Cook and Hughes, 2009). Rather, the focus should be on how the public sector can stimulate innovation and economic transformation through its critical role as the leader of several large, pervasive value chains,  such as health, education, science, justice and social services.