Annual Report 2011 / 12 - New Zealand Trade and Enterprise

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6 NEW ZEALAND TRADE AND ENTERPRISE ANNUAL REPORT 2011/12 Measuring our success Customers In order to contribute to the Government’s goal of a stronger economy, NZTE committed to the key outcome of ‘Increased business internationalisation for our customers’. During 2011/12 we progressed work on measuring the impact we can have on New Zealand’s internationalising businesses by setting up measures to analyse the export growth rates for our intensively managed (Focus 500) customers. For the period 1 April 2011 to 31 March 2012, the total value of export revenue for our Focus 500 customer portfolio grew 9.4% from $19.965 billion to $21.836 billion. For the same period the overall export growth for NZ was 4.8%. 1 Our Focus 500 customer portfolio is made up of a range of small, medium and large exporting businesses. Smaller companies tend to have higher growth rates as they are coming off a lower revenue base, while large more mature companies have much smaller, but more consistent growth rates. The average growth rate 2 of export revenue for companies within our Focus F500 for the 2011/12 year was 31.5%. We have made good progress in improving the ways in which we measure our overall performance and in particular the economic impact of our activities. Having robust metrics and data will enable us to benchmark our performance and clearly demonstrate our impact on businesses and the wider New Zealand economy over time. In 2011/12 we completed 10 case studies that tracked and identified the potential direct economic impact to NZ from 10 of our business customers, and these will be used in coming years to further refine and develop the economic impact methodology. During 2011/12 we also developed a monthly NZTE dashboard, which is used by our Board and leadership team to monitor organisational performance. The dashboard information is reported through a business intelligence portal and tracks 12 key performance indicators. Team-level dashboards have also been developed to provide operational performance information to support and improve decision-making capabilities. Over the past 12 months we have increasingly focused on working with New Zealand businesses that are committed to significant international growth. During 2011/12 we had an active customer portfolio of over 2,000 businesses with an intensive focus on a group of approximately 500 high growth potential companies (Our Focus 500) that were selected according to the customers’ current and future potential, and the impact they can make on the wider economy. We work intensively with these 500 businesses with the long-term goal to double their growth. We provided services to our other customers through a range of delivery mechanisms including a NZTE ‘light touch’ business service. In addition, NZTE also funded business capability building services to a wider range of New Zealand businesses through incubators and our Regional Partner Network. We have continually refined our customer engagement model and processes to improve the value we deliver to our customers and achieve greater effectiveness and efficiency. We have also looked at new and innovative ways to actively identify newer businesses with the potential and desire to grow internationally. Our customers have continued to report satisfaction with our service delivery, with 89% of our Focus 500 and Foundation customers rating our performance as excellent, very good or good. In addition, 90% of our customers were satisfied with NZTE as a whole in 2011/12 compared with 80% last year. Domestic NZTE business development services rated at 94% satisfaction for businesses accessing the Regional Partners Network, with 90% of businesses either having already implemented, or intending to implement business changes as a result of their engagement with the Regional Partners Network. 1. Figure taken from the Balance of Payments data for export of goods and services released by Statistics New Zealand. 2. Average = mean. For the purpose of calculating average growth, we use the middle 95% of growth rates for F500 customers (i.e. we remove the top and bottom 2.5%). This is to remove extreme outliers that skew the data.
NEW ZEALAND TRADE AND ENTERPRISE ANNUAL REPORT 2011/12 7 Services Investment NZTE delivers (or contracts for delivery) a range of services to support New Zealand businesses to develop capability, grow, and contribute to the country’s economy at all stages on their path to internationalisation. Our services are always evolving to make sure they are relevant and in line with what businesses need. We have refocused and rationalised our services during 2011/12 (and will continue to do so in the coming years) to ensure that they are meeting our customers’ needs with the right level of service, at the right time, and adding measurable value. The key is to assemble the right blend of services that deliver the growth results that customers are wanting to achieve at that point in time and then to refine and reblend them as they continue on their journey. To assist in this we have also produced an interactive ‘Services Guide’ for our customer-facing teams, which contains detailed information on our suite of services. During 2011/12 NZTE continued to sharpen the focus of both its international and New Zealand-based investment teams. The new business model has a firm focus on: • Better targeted investment into the Government’s priority growth sectors and MBIE-agreed industry development, including support of selected city and regional initiatives • Capital and capability for our Focus 500 customers under an integrated customer engagement model. In the year ended 30 June 2012 we closed 16 investment deals with a total value of $221 million. The estimated direct economic impact (DEI) to New Zealand of these deals is nearly $1.5 billion, with in excess of 280 jobs potentially created. The DEI calculation measures how an investment into New Zealand directly impacts New Zealand’s wider economy. The majority of the measures underpinning our DEI calculation are in relation to the value of increased profits, wages and supplier spend generated for New Zealand, over and above the actual dollar value of the investment. Our services are always evolving to make sure they are relevant and in line with what businesses need.
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