Annual Report 2005-2006 - New Zealand Customs Service

Performance Measurement Model
INPUTS
Are applied
through a
TRANSFORMATION That
In order
PROCESS delivers OUTPUTS to achieve OUTCOMES
Resources
Capability
&
Capacity
Strategies
Processes
&
Activities
Outputs
Border
Assurance
Outcomes
Outcomes
for the
Community
The ongoing development of the
performance measurement system
will be a priority in 2006/07
and beyond. This will encompass
the use of direct measurement
and evaluative activity to help
build a comprehensive picture
of performance, impact,
and cost-effectiveness.
Evaluative Activity
Customs has undertaken a
range of evaluative activity that is
informing decision-making at both
strategic and operational levels.
Participation in Exercises
Customs’ participation in
multi-agency exercises provides
the opportunity for evaluative
activity that enhances Customs’
ability to respond to a range of
risks. Recent exercises have
included simulated responses to
mass illegal migration, pandemic
outbreaks, and the proliferation
of strategic goods. Lessons from
multi-agency exercises highlighted
a requirement for a sophisticated
coordination capability.
This was achieved with the
establishment of an Operations
Coordination Unit in December
2005. Operations Coordination
is now tasked with developing
a comprehensive “lessons
learnt” process that will capture
the continuous improvements
from operations and exercises
in a structured process.
Evaluation of Trade Security Strategy
The post-implementation
review of Customs’ trade security
capability funding found that
trade security standards had
been successfully integrated into
existing trade assurance regimes,
and in voluntary arrangements with
exporters, to reduce the overall
cost and disruption to the trading
sector. This finding confirmed that
the trade security strategy is a
suitable model for wider application.
Customs is now focusing on the
trade security standards developed
by the WCO and is exploring the
benefits of bilateral trade security
agreements with New Zealand’s
other major trading partners.
Evaluation of Enhanced
Inspection Capability
Customs received additional
funding in the 2004/05 Budget to
implement enhanced inspection
capabilities as a key pillar of
the Trade Security Strategy.
The effectiveness of the alignment
of the enhanced inspection
resources and capability was
evaluated in 2005/06. A key
outcome of the evaluation has been
an increased emphasis on forward
planning of inspections to enable
better resource utilisation. The review
also highlighted a need for ongoing
evaluation of the non-invasive
inspection capability including
its appropriateness, its operation,
and where it is deployed.
The latter evaluation identified
existing practices that required
ongoing enhancement as staff
become more proficient in the use
of the equipment. It also found that
the business case assumptions
concerning the placement of the
mobile X-ray trucks still stand true,
and that the mobility of this capability
will enable the intervention rate to be
maintained by moving the equipment
to address identified risk. However
it also noted that the placement of
the equipment should be continually
examined in light of changing
cargo flows and shipping routes to
ensure coverage is maintained.
Risk Management
Risk Management is embedded
across Customs as “business
as usual”. An example of this is
the risk-based trade assurance
compliance programme.
An important component of risk
management is the maintenance of a
risk profile to identify the high level risks
that might prevent the Service from
achieving its vision, outcomes, and
objectives. The risk profile helps ensure
that mitigation strategies and plans are
in place for the key risks identified.
During the year, strategic and
operational risks were reviewed
and reassessed. The risk profile
identified and ranked strategic
and operational risks and provided
input into planning and reporting
processes and the SOI.
22 New Zealand Customs Service – A N N U A L R E P O R T 2 0 0 5 – 2 0 0 6