The action is led by Kim Ngārimu, who is supported by Peter Winder and Kathy Grant.
We've scoped what needs to be considered and have secured legal advisors to begin preparing advice on the requirements, process and timing.
The Establishment Board will consider how the Parent/Subsidiary operating model will be led and make initial decisions to set the IST up for success, including:
Some of these issues are critical, while others (for example, investment plan cycle for subsidiaries) are not necessary for 1 April. Discussions regarding TEC relationship managers suggest that these relationships are intended to continue – IST will need to form a view on how that might align with the parent/subsidiary relationship. Reporting, accountabilities and communication in the subsidiary/ parent accountability space is a critical issue – a suitable framework will need to be developed and clearly articulated prior to 1 April – there are clear links to consideration for CEs roles and decision-making, noted below.
The Establishment Board will need to consider how to lay a foundation of financial health for the IST while giving effect to government direction regarding the use of regionally accumulated assets. Some considerations include:
IST will need to identify any litigation or claims both against the ITP and by it with others, as well as any areas of non-delivery with TEC/NZQA that may result in a claim back or other payment to TEC/NZQA. The Board will need to understand any joint ventures or partnerships that have on-going obligations or expectations and financial commitments (for example, MIT has a complex three-way partnership with the Counties Manukau DHB which the DHB will expect to continue).
Critical issues have been identified although guidelines will need to be articulated in relation to gifted land – jointly owned assets – which may become cash if there are relevant pre-emptive rights that are exercised.
At the CE level, the Establishment Board will consider the current arrangements in place with CEs to understand the level of continuity that can be expected during transition, along with how best to ensure that all employees are well supported through the transition. Some considerations include:
As part of understanding continuity, the Board will also note any tier 2 positions that are acting or short term. The Board will seek to understand the State Services Commissioner’s role with respect to collective employment agreement negotiation to make sure that we are aligned to public sector expectations. The Board will consider what change management resource needs to be in place to ensure that employees are well supported through transition.
Understanding current CEs’ tenure and employment agreements together with identifying relevant delegations are critical to ensuring continuity during transition. The IST will need to form a view on process and decision rights relative to the subsidiary Boards.
The IST will need to understand the range of non-TEC revenue that each ITP is earning. There are a range of government funding streams beyond TEC, as well as a range of real commercial activities and it is wise to understand their scope, nature and risks alongside the forecasts of other revenue.
Similarly the IST will need to understand the nature, extent and timing of cost control and cost reduction activities in each ITP that are aimed at balancing their books. The Establishment Board will need a very good picture of cash requirements and how current boards are addressing operating losses. A short list of considerations includes:
The Board will need to understand capital and non-cancellable operating commitments. For non-cancellable operating commitments, the Board will need to consider the appropriateness of a threshold.
The Board will need to set:
An inventory of intellectual property ownership and rights will be gathered.
The Board will prioritise gathering information for the IST on:
The Board will consider present accountabilities and where they should sit in the new structure.
The Board will consider learning environment and performance expectations for the first year into transition: what decisions will need to be made prior, and what decisions ought to be deferred, such as:
The IST will need to start to understand the qualifications and courses that each ITP is delivering - this will be a big issue post 1 April. The Board will begin the process to understand:
The IST will need to build a picture of fees for each programme. They will differ across the country and one of students’ key concerns will be what we need to do to harmonise fees. Prior to 1 April 2020 the Board will prioritise information gathering.
The Establishment Board’s priority will be information gathering on:
The Board will gather and understand IRD, NZBN, Provider numbers and other compliance matters.
The Establishment Unit will use its in-house communications resource to build a full communications strategy across two periods – current to 01 April 2020, and 1 April 2020 through to 31 December 2022.
The Establishment Unit will seek to understand the nature of competition between the ITPs and consider how to manage it post 1 April 2020. Ongoing marketing activity will be linked to the 'Name and Brand' workstream.
The Board will identify the timing, nature, and scope of major decisions that ITPs are currently considering and expect to consider prior to 1 April 2020 and after 1 April 2020.
The Board will develop the constitution for each subsidiary, including rules, decision-making, shareholder rights and decisions, reflection of the legislative obligations of NZIST, and other relevant matters.