Cost Effectiveness

LINZ delivers a range of outputs to different stakeholders and customers. It is through the delivery of these outputs that we achieve our outcomes. To manage our resources effectively and efficiently we need to understand the costs and benefits of those and understand the impact and value of what we do.

In the current economic environment it is even more important the state sector is focused, efficient and productive. This means delivering services more cost-effectively and continually focusing on improving the performance of every tax or fee dollar spent.

Over the past decade LINZ has reduced internal costs, our overall staff numbers and the fees for our services through a focus on electronic delivery. In particular, through the programme of electronic lodgement of survey and title transactions, we have been gradually reducing the number of staff in our processing centres and have closed some regional offices. This programme is now nearing completion but our focus on efficiency and cost effectiveness will continue.

We have identified where we can make savings and have offered funding back to the Government. We will continue to focus on where savings can be made and will ensure our work aligns with Government priorities. This means, where appropriate, the reallocation of resources internally.

LINZ receives funding from third party users of our services. We are committed to ensuring we use this money effectively, and demonstrate value and efficiency to our customers. We have structures and processes in place to review the services provided, and the fees required to fund them, based on market projections and trend data.

We also have other ways of measuring our cost effectiveness. A key focus of our regulatory activity is to continue to develop regulatory indicators and targets to evaluate the effectiveness of interventions in achieving outcomes. Our overall regulatory approach also focuses on optimal regulation, with a view to ensuring compliance costs are minimised, given the risk.

Understanding the changing needs of our customers is a key element in delivering cost effective services. Through our Customer Relationship Framework we can proactively identify and manage customer needs so that resources are targeted into the right areas.

Other ways we will manage and measure our cost effectiveness include:

• continually improving the efficiency of our systems and processes to minimise the cost of compliance
• investing in our capability to anticipate emerging trends and their impact on our business
• ensuring our business support and information technology functions align with the needs of the business to deliver our outputs, and
• constantly improving our planning to ensure we focus on the right things and to prioritise our resources.

LINZ is also developing a strategic research and evaluation framework that will assist in the development of performance measures and an evaluation capability. This will provide information that enables better monitoring and reporting of our outputs and their impact on our outcomes, as well as an improved basis for high-quality performance information to managers, decision-makers and the public. We want to ensure there are clear links between the outcomes we are striving to achieve and our day-to-day activities.