STATEMENT OF INTENT 2019-2023
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G45 SOI (2019)
STATEMENT
OF INTENT
2019-2023
ISSN 1177-8016 (Print)
nzte.govt.nz
Disclaimer: This document only contains general information and is not formal advice. The New Zealand Government and its associated agencies (‘the
New Zealand Government’) do not endorse or warrant the accuracy, reliability or fitness for any purpose of any information provided. It is recommended
that you seek independent advice on any matter related to the use of the information. In no event will the New Zealand Government be liable for any loss
or damage whatsoever arising from the use of the information. While every effort is made to ensure the accuracy of the information contained herein, the
New Zealand Government, its officers, employees and agents accept no liability for any errors or omissions or any opinion expressed, and no responsibility
is accepted with respect to the standing of any firms, companies or individuals mentioned. JUNE 2019
CONTENTS
02 Foreword
05 Our journey so far
06 Our context
10 Our strategy
11 Our purpose
11 Know-how and know-who
12 Kāhu
14 Our operating models
23 One Global Team
24 Organisational health: People and capability
26 Measuring our performance
27 NZTE’s Performance Framework
28 NZTE’s international network
Our purpose is to grow
companies internationally
— bigger, better, faster —
for the good of New Zealand.
FOREWORD
As a small country with a domestic market of just under 4.8 million people good progress on building and aligning our Our Kāhu strategy is underpinned by the
located at the edge of the world, New Zealand needs to think and act globally operating models, culture, and capabilities concept of mastery, and also by innovation.
with our customers’ needs, and this has come A more competitive and complex international
in order to be economically and socially sustainable. New Zealand depends
through in the results we have achieved with the environment demands more of New Zealand
on trade and investment for our prosperity, so we need to help companies go
completion of our recent ‘Ascent’ programme. business and of NZTE to help them grow into
international, and to attract the capital required to support our economy. those markets and secure funding. It requires
We know however, that the world doesn’t stand
both excellence in our core disciplines that we
still, and neither should our strategy. We have
Trade, investment and innovation have a vital purpose is to grow companies internationally apply to help our customers, and in developing
recently refreshed our strategy and put in place
role to play in meeting the Government’s – bigger, better and faster – for the good of innovative ways of delivering value, including
the next phase of our improvement journey.
vision of building a productive, sustainable New Zealand. through digitalisation. Of course, at the heart
Our new Kāhu strategy builds on the success
and inclusive economy. The Government of our strategy are our people, and through
We see ourselves as an instrument in of the Ascent programme by continuing to
has underlined the importance of building inspiring them and their relationships with
the fundamental diversification of the refine, and evolve, the development of our
exports and export led growth as part of its our customers, and by providing the right
New Zealand economy over recent decades, existing operating models. This underpins
economic strategy. This is focussed on moving knowledge and tools, we will to continue to
from commodities to value-add, and across our commitment to meeting our two top
from volume to value in our traditional export create and deliver value for our customers.
a broader range of geographic markets. Our line performance measures of helping our
industries, and especially on growing more
small domestic market, and often relatively Focus700 customers continue to achieve For us this is our core purpose: growing
value from our primary sector while protecting
weak international connectivity have hindered revenue growth of 3 percentage points over companies internationally – bigger, better, faster –
the environment. It is also about leveraging
New Zealand’s economic productivity and and above a New Zealand export revenue for the good of New Zealand.
new opportunities to help lift productivity and
performance. We see NZTE as having a key benchmark per year1; and investment impact of
exports, and those that are linked to higher-
role to help bridge those gaps for the good $2 billion per year2.
value and more sustainable land use. Many of
of New Zealand. We need internationally 1 International Revenue Growth for our portfolio of Focus700 customers with revenue
OUR JOURNEY SO FAR
Through our successive improvement programmes NZTE has focussed on particular areas to add more
value to our customers. The two most recent improvement programmes, ‘Impact’ and Ascent’, have
resulted in significant improvements in both export and investment outcomes.
Our current Kāhu strategy builds on these gains to take both NZTE and our customers forward to help
grow New Zealand.
EXPORT CUSTOMERS
With NZTE’s
help, our Export
customers achieved
3
$ 1.7b
EXPORT DEALS
917
GROWTH OUTCOMES
Our Focus700
customers rate
us highly
63% +69
NET PROMOTER
Say that NZTE has put them in a
STRONGER POSITION TO SCORE
GROW INTERNATIONALLY
INVESTMENT CUSTOMERS
Investment impact
we achieved for
New Zealand
$ 800m 57
INVESTMENT DEALS INVESTMENT DEALS
Quality of investment
$ 2.3b 1 : 2.8
INVESTMENT BENEFIT RATIO OF DEALS TO
ECONOMIC BENEFIT
3 This was a growth margin of 9.2% above the Export Sector Benchmark in 2017/18.
05
OUR CONTEXT the growing focus on sustainability that is an
emerging theme, albeit to different degrees in
With the focus of the Government’s Economic
Strategy on a more productive, sustainable
different markets. With all these trends, what and inclusive New Zealand, diversifying and
Who we are The broader environment sort of capabilities will our customers require growing our export base will continue to be a
NZTE is the New Zealand government’s The global environment is fluid and complex of us as they look to access global markets? vital contributor to New Zealand’s economic
international business development agency. and becoming increasingly so. At a geopolitical What sort of business models and market entry and social wellbeing into the future. This will
level, we are continuing to see some of the strategies will work best, and what does this underpin a modern productive economy that
Established under the New Zealand Trade and
major global shifts that we identified in our last mean for NZTE, and the skills and capabilities creates growth within ecological limits. The
Enterprise Act 2003, our role is to “support
Statement of Intent continue to play out. While we require, and the way in which we work with Government’s Trade for All Agenda aims to
the development of internationally competitive
trade tensions and the rise of protectionism our customers? ensure that all New Zealanders benefit from
New Zealand business”. NZTE helps companies
have tended to dominate recent headlines, there trade, and this objective is being supported by
to grow internationally through the application So, what does this mean for New Zealand
are also other structural forces at play that are modern trade agreements.
of the ‘know-how’ (knowledge and experience) exporters? It means that the environment
fundamentally changing the way the global
of our One Global Team, and the ‘know-who’ they must navigate is even more complicated, This underlines the importance of economic
economy operates. These major global forces
to make the right connections at the right time complex and changeable. In helping our cooperation and forums like APEC, which
or ‘megatrends’ at work include the rise of the
along the way. As well as our connections with customers operate in this environment, specialist New Zealand is hosting in 2020. As the
digital economy, and the new technologies
New Zealand businesses and international know-how and know-who has become more government seeks to expand its network of
and business models that are disrupting and
markets, we leverage our connectivity important than ever. It is vital for both preparing Free Trade Agreements (FTAs), New Zealand
reshaping established global value chains. The
across both central and local government in companies for internationalisation, and in remains focussed on supporting the World
growth of goods trade is slowing, and services
New Zealand, to help our customers, and to helping them navigate, access and succeed in Trade Organisation (WTO) and rules-based
trade is also growing in importance. The role
support export and investment growth for the global markets. This focus on going deeper and system that underpins international trade. As
of China, and other East Asian and developing
good of the country. working more intensively with our customers is a part of the changing global trade architecture,
economies as they have grown and matured, are
central underpinning of our Kāhu strategy. New Zealand is supporting exporters through
Our know-how and know-who is expressed also reshaping patterns of production and trade.
progressive and regionally based free trade
in our Māori name: Te Taurapa Tūhono. Te Consumption patterns of global consumers are
Export and investment growth agreements. The recent entry into force of the
Taurapa is the stern post of a traditional Māori changing and there is growing recognition of
for the good of New Zealand Comprehensive and Progressive Agreement
waka, which records valuable knowledge, and the environment and social limits of growth.
for Trans-Pacific Partnership (CPTPP) provides
stabilises and guides the craft forward. Tūhono Expansionary monetary and fiscal policy Exports
improved access for New Zealand businesses
represents connections to people and an ability settings and a low interest rate environment Traditionally, New Zealand’s trade has been
into important markets around the Pacific rim
to build relationships. remain a hangover from the Global Financial focussed on commodity exports like dairy and
that account for 30 percent of our goods and
Crisis. Of course, the speed with which change is wool. We’ve been hampered by our distance
As a Crown Entity, we are governed by a board services exports. These sorts of agreements
occurring adds yet another layer of complexity from major markets, and the small scale of
of directors. Our Board provides governance also provide an opportunity to diversify away
to the global operating environment which New Zealand companies also makes it hard
over our strategy and future operating from our traditional trading partners and be
New Zealand companies must navigate. With to compete internationally. As it is, more than
intentions, and monitors organisational part of growing intra-regional trading patterns
change comes opportunity, for New Zealand and 620,0004 New Zealand jobs already depend on
performance. Our Board members have and emerging value chains. CPTPP is also our
for New Zealand exporters. trade. These are reliant on continued access to
extensive international business experience first FTA with Japan, Mexico and Canada. A
diversified markets, connections, knowledge and
and knowledge. NZTE needs to understand these macro- range of other trade negotiations are also
capability, and quality investment.
forces so we can consider how they affect in play, including with the EU, the UK, Latin
The Minister for Economic Development and
our customers and how NZTE can effectively As the global environment evolves, we are America, and with countries in North Asia,
the Minister for Trade and Export Growth have
support customers, while being able to pivot working hard to ensure that opportunities are ASEAN, Australia and India through the Regional
delegated responsibility for NZTE. The Ministry
as needed. For example, what do the rise in identified and leveraged and that any disruption Comprehensive Economic Partnership (RCEP),
of Business, Innovation and Employment (MBIE)
services-based trade, the growth of intra- is minimised. We are carefully watching issues as well as with China to upgrade and modernise
and the Ministry of Foreign Affairs and Trade
regional trade flows, the rise of tech companies like the tensions between the US and China, and the existing FTA.
(MFAT) jointly monitor NZTE.
and digital business models and platforms, not the implications of Brexit, for example.
Subsequent to printing, on 27 June 2019 the Government announced a to mention the changing nature of global value
change in Cabinet responsibilities and the Hon Phil Twyford took over the
Economic Development Portfolio. The Hon David Parker remains Minister for chains, all mean for NZTE’s know-how and
Trade and Export Growth. The Minister for Economic Development and the
Minister for Trade and Export Growth have delegated responsibility for NZTE. know-who in the coming years? There is also 4 Comprehensive and Progressive Agreement for Trans-Pacific Partnership Overview
Factsheet, Ministry of Foreign Affairs and Trade
06 NZTE Statement of Intent 2019-23 OUR CONTEXT 07
In this dynamic environment New Zealand’s Investment
internationalising companies continue Issues of scale and distance also exist for
diversifying into a variety of value-added investment. New Zealand also needs productive
sectors, such as higher-value food and beverage investment to help fuel growth, and we know
and in tech, including Software as a Service. Our that there is a shortage of large-scale investable
distance from key markets has been partially propositions in New Zealand to attract
offset by ongoing economic growth in Asia, overseas investors. The New Zealand economy
and ongoing demand for safe and high-quality is characterised by its capital shallowness
goods and services. and relatively low long-run productivity
performance. Investment promotion is integral
While there are about 12,000 New Zealand
to industry policy,
exporters, most are very small, contributing
4 percent of New Zealand’s total export Foreign direct investment is more than just a
earnings. The material impact to our export flow of capital. There is often no shortage of
economy comes from around 286 companies, footloose capital seeking quality opportunities,
who earn over $25 million a year and contribute but it is important that the capital is more
the majority of New Zealand’s export earnings. than just funding, and that it brings with it the
This underlines the importance for NZTE of knowledge, capability and connectivity that
intensively focussing the bulk of our efforts in is just as important for growing New Zealand
growing more medium-sized export firms that businesses internationally. Productive, high
are committed to internationalising, rather than quality investment helps fuel growth by
diffusing all our relatively limited resources over providing the financial capital needed to
a much wider number of smaller firms. The establish or expand operations into new
growing international opportunity for services markets, enhance the skills and capabilities
and digital products also remains a focus. required to access global markets, and develop
new productive assets to help accelerate
New Zealand needs to grow more companies
growth in our regions, as well as supporting
of scale who can compete globally, so they
sustainable land use and opportunities in the
can create jobs, make a larger contribution
Māori economy. This is not to downplay the
to the economy, and boost standards of
importance of local investors who have a critical
living for all New Zealanders. Compared with
role to play. If anything, offshore investors
their domestically focussed counterparts,
will often look for local investors to provide
exporting and foreign owned firms operating
validation of local investment opportunities,
in New Zealand are typically more productive
before committing their own capital.
and larger5, suggesting that international
connectivity helps facilitate the spread of the
skills and technology that are so important
to help improve New Zealand’s international
competitiveness and productivity.
5 Can the Kiwi Fly? Achieving Productivity Lift-off in New Zealand”,
Paul Conway, NZ Productivity Commission
08 NZTE Statement of Intent 2019-23
OUR STRATEGY Our purpose
At NZTE, we’re here to be part of something in-depth knowledge and experience of how to
that is bigger than ourselves: to grow companies compete in a range of markets. Our people have
internationally — bigger, better, faster — for the sharp commercial, investment and advisory
the good of New Zealand. NZTE is uniquely skills to help lift international growth. This is our
positioned to do this through our global network ‘know-how’.
and our government access.
Our ‘know-who’ is the global network of
We have a network of over 600 people across 50 committed people in New Zealand and
locations, of which 40 are offshore. This gives our around the world who we can call upon in
customers a bigger footprint on the world stage our customers’ interests. This includes our
than they could ever have by themselves, helping NZ Inc partners, industry leaders, local
to overcome the challenges of scale and distance. business people or expat Kiwis. We can
help with connections to experts who are
NZTE’s government ‘imprimatur’ or endorsement
experienced in running international businesses,
often provides credibility and mana to help open
both in New Zealand and in-market, as well as
A PRODUCTIVE, doors for companies in markets around the world.
SUSTAINABLE, partners and distributors, local experts, investors,
WHY… FOR NEW ZEALAND INCLUSIVE and links to other businesses at a similar stage
NEW ZEALAND Know-how and know-who
on their international journey. Our connections
Our global presence enables us to deliver value
To grow companies internationally mean that we know the right person to call upon
NZTE PURPOSE – BIGGER, BETTER, FASTER – to our customers through our ‘know-how’ for
in our customers’ interests. We’re absolutely
for the good of New Zealand international growth and ‘know-who’ to make
committed to increasing our know-how and
the right connections along the way. Having
KNOW HOW & KNOW WHO know-who for the benefit of our current and
people in locations around the world gives us
to grow companies internationally future customers.
FOR FOR
WHAT
EXPORT CUSTOMERS INVESTMENT CUSTOMERS
“Discover, Plan, Perform” “Originate, Prepare, Connect”
Preparing and enabling Originating and preparing
companies to succeed in market investment opportunities that
and sustain international growth we connect to investors
AMBITION DRIVES US
ADVENTURE TEACHES US
HOW HONESTY FREES US
TRUST BINDS US
MANAAKI IS US
10 NZTE Statement of Intent 2019-23 OUR STRATEGY 11
Kāhu
NZTE’s strategy is to continue to build a Our Kāhu programme combines a focus on
customer-centric, professional services mastery, or excellence, in our existing operating
organisation that helps grow value-added models – the Customer Way and the Investment
companies internationally and attracting Way – with innovation. This is applied through
investment for the good of New Zealand. using digital services to deliver value for our
customers and by leveraging our existing
We’ve accomplished a great deal in the last few
knowledge resources. We’ve also established
years. We believe that NZTE’s strategy is sound,
practice areas on e-commerce and sustainability,
but we are not complacent. Much of the hard
where we think there are opportunities for
work is still ahead of us. Growing companies
customers to access greater value.
internationally requires sustained effort over the
long-term. Of course, delivering our programme and value
for customers is dependent on the skills and
To implement our strategy, we have had three
capabilities of our people, so our Kāhu strategy
previous ‘challenge’ improvement programmes:
is underpinned by a real focus on He Tangata
‘Playing to Win’, ‘Impact’ and ‘Ascent’.
(our people – culture, leadership and capability).
Our next evolution of our improvement
programme is ‘Kāhu’, which will take us
forward into the period that this Statement
of Intent covers.
GROWING COMPANIES
INTERNATIONALLY
– BIGGER, BETTER, FASTER –
KNOW HOW & KNOW WHO
EXPORT CUSTOMERS INVESTMENT CUSTOMERS
6% by 2021 $3b by 2021
CUSTOMER WAY INVESTMENT WAY
Mastery of Mastery of
“Discover, Plan, Perform” Kāhu “Originate, Prepare, Connect”
• Strengthening companies for growth • Originate investment opportunities
• Preparing companies for market • Prepare opportunities
• Enabling success in market • Connect to high quality investor networks
DIGITAL KNOWLEDGE PRACTICE AREAS
DELIVERY TO CREATION AND E-commerce
CUSTOMERS CURATION Sustainability
HE TANGATA (PEOPLE)
CULTURE, LEADERSHIP AND CAPABILITY
AMBITION DRIVES US
ADVENTURE TEACHES US
HONESTY FREES US
TRUST BINDS US
MANAAKI IS US
12 NZTE Statement of Intent 2019-23
OUR OPERATING MODELS
We have developed two operating models for our two overlapping groups How we work with export customers (or F700) customers. These are companies
of customers: The Customer Way, and The Investment Way. We have defined Our starting point in working with exporters that have the growth aspirations, commitment,
is that each New Zealand business and their and the capacity and capability to compete
who we work with, how we work with them, the services we deliver, and what
international growth aspirations are different. internationally, and where NZTE and NZ Inc can
outcomes we are aiming for.
We begin our journey with our customers deliver the biggest impact.
through a process of ‘discovery’. The first step
We bring new companies into the Focus700
is to discover and understand their business,
The Customer Way portfolio and support another 4,800 Foundation portfolio when they are ready for intensive
and the opportunities and challenges each
This is how we work with companies growing customers who are ready to start or build their engagement and have the hunger and capability
customer faces. By doing so, the second step
out of New Zealand (export customers) into international growth journey. to grow internationally. We insist that companies
is to work with our customers to develop
international markets. focus and commit to target markets, and we
Our Kāhu strategy is focussed on lifting and agree a ‘plan’ on the best NZTE services,
design customised game plans for each customer
Who NZTE works with performance in our Customer Way model. experts, and connections required to address
and for each market. The Focus700 is regularly
New Zealand’s export economy includes It is about delivering greater impact for our those opportunities and challenges, and how
reviewed, to ensure that our engagement is
almost 12,000 companies exporting goods customers and enabling them to succeed in we can best leverage our partnerships across
continuing to add impact. If a company’s needs
and services internationally. Most of these market. To do this means working more deeply NZ Inc. The third step is the ‘perform’ stage of
have changed, or if we feel we can no longer add
companies earn under $5 million per year. with our customers to really understand their the process – it is about the delivery of the plan,
value, they are transitioned out of the portfolio.
Conversely, a small number of companies earn business and their product/market fit. This is and how we best provide excellent customer
over $25 million per year, but they contribute their value and niche, and how they can set experience and outcomes through the provision We’ve weighted the Focus700 towards tech,
the majority of New Zealand’s export earnings. up and scale for long-term growth in-market of NZTE ‘know-how and know-who’ to help our high-value food and beverage, Māori companies
We need to grow more companies of scale – exporting is no longer the case of dropping customers grow internationally. and specialised manufacturing companies,
who can compete globally, and in turn make goods off at the port, but requires longer-term reflecting the Government’s commitment to
a larger contribution to the export economy. commitment to markets, distribution chains, THE CUSTOMER WAY helping speed the transition that New Zealand
FOR EXPORT CUSTOMERS
and customers. Using local market knowledge needs to make to an increasingly diversified
NZTE works with companies who are committed
and quality connections at the right time can INT’L BUSINESS economy that is sustainable, productive and
to a journey of international growth and DEVELOPMENT MANAGERS
help drive growth for our customers and ensure inclusive. This is a move from volume to value,
where we can make the most difference. We
that these leads are converted into value. EAST
CHINA
the creation of higher-paid jobs, and a greater
have around 700 companies in our Focus700 ASIA
EUROPE
focus on the regions.
LATIN
AMERICA IMEA
INTERNATIONAL In addition to the Focus700, we also engage
MARKETS
NORTH AUSPAC
intensively with coalitions. A coalition is a self-
EXPORT GOODS + SERVICES EARNINGS, YEAR TO DECEMBER 2017* NZTE’s portfolio of around AMERICA
DISCOVER selected, business-led group of companies, who
5,500 companies cuts PLAN
PERFORM
Number of New Zealand across all revenue bands, are willing to work together to attack a common
$46b
with a concentration
IONN
exporters by revenue band opportunity or challenge. Companies who form
CO
COMPANIES
ATTIO
on small to medium- IN NEW ZEALAND
AL
A
a coalition can benefit by sharing knowledge,
ND
ITI
size companies
UN
286 COMPANIES
O
OU
S
N
FFO
and leveraging collective resources, expertise
earn > $25 million
F700 and technology to bolster their chances of long-
term success.
$7b
NZ CUSTOMER
MANAGERS
603 COMPANIES We have a lighter touch engagement with our
earn $5 – $25 million Focus700 Foundation customers, which we’ve segmented
customers
To achieve the most impact, and to use our into ‘Start’ and ‘Build’. Our Foundation customers
$4b
resources most effectively, we’ve segmented are at an earlier stage in their international
10,636 COMPANIES Foundation
customers
our customer base. NZTE works with about journey. They are either committed to getting
earn < $5 million 5,500 of the 12,000 exporters in New Zealand, started, already exporting and wanting to
with 80% of our effort focussed on working become better, or they may be companies who
NUMBER OF NEW ZEALAND EXPORTERS
intensively with what we call our Focus700 prefer a less intense engagement.
14 NZTE Statement of Intent 2019-23 OUR OPERATING MODELS 15
Through our Regional Business Partner We focus our effort in two distinct areas driven THE INVESTMENT WAY Typically, these are long-term projects with
FOR INVESTMENT CUSTOMERS
Network (which includes chambers of by Government rationale and in support of and significant cost and development risk and are
commerce, for example), we also support in collaboration with other NZ Inc agencies and therefore not actively pursued by the private
INT’L INVESTMENT
small emerging businesses which may be the private sector: MANAGERS sector. In many cases, greenfield investment
tomorrow’s international growth success opportunities are located in the regions, and we
• Helping New Zealand growth stage
stories. This partnership also helps provide NA
L DO work closely with local Economic Development
companies expand internationally via TI
O M
a potential pathway for us to engage with Agencies and other local partners to identify
ES
NA
investment, accelerating their ability to scale
TI
ER
C
emerging businesses if and when they begin INVESTORS and accelerate the development of such
INT
and compete
their international journey, and aligns their opportunities, and align them with international
• Helping set up greenfield operations and new ORIGINATE,
needs with the services that we can provide MATCHING
PREPARE,
CONNECT markets and suitable investment partners.
initiatives in New Zealand, providing new
them through our Foundation and Focus700
jobs, growing our regions and driving NEW ZEALAND NZTE Investment adds value to these
S
Customer segments.
SEC
OPPORTUNITIES
ON
new innovation opportunities by helping develop and assess
TO
GI
RE
RS
Under our Kāhu strategy we are focussing on feasibility of business cases, building local
In pursuing these focus areas, our overall goal is
strengthening our offering with our Foundation COMPANIES market context, and making connections to
to Originate, Prepare and Connect investment
Customers with the practical tools, knowledge global sources of capital, access to markets and
opportunities to investors that accelerate the NZ INVESTMENT
and advice they need to start or build their MANAGERS knowledge. In this way NZTE can help mitigate
growth of New Zealand. Our Investment Way
international journey. This is an area where development risk for significant local projects.
operating model was established during our
we believe there are real opportunities to
‘Ascent’ programme, and our learnings from support in accessing bridging capital. NZTE’s Domestic and international investors
build greater connectivity and improve our
the last three years are that we can add more Investment expertise, resources and extensive We leverage our domestic and international
service offering through the provision of digital
value to our customers and for the good of domestic and international networks all work networks to identify investors and connect
products and services.
New Zealand by working more deeply with our together to support in this process. them with the right New Zealand opportunities
customers and being more deliberate in the and attract quality investment, for the good of
The Investment Way The current market landscape drives a distinct
strategic origination of greenfield opportunities. New Zealand.
NZTE Investment is tasked with generating focus towards technology companies, but our
This is as much about putting in place more
productive, sustainable, and inclusive mandate means we will support all growth stage Beyond capital, our investment networks
efficient and effective processes as it is about
investment opportunities to accelerate the companies within NZTE’s focus sectors. provide connections, in-market channels,
developing and growing our people. We need
growth of New Zealand. We do this by building resource transfer of technology and know-
our people’s mastery to truly identify, develop, Our focus on growth-stage companies extends
a sustainable pipeline of quality investment how, and stimulate competitive, innovative and
and match quality New Zealand opportunities to the development of New Zealand’s early
deals and connecting these with the right productive growth.
with the right investors. stage capital markets, both domestically
investors who can help realise the full potential
and internationally. We do this through our NZTE works with a range of investors both in
of the opportunity. Investment promotion is Supporting growth stage companies efforts building the connectivity and creating New Zealand and across NZTE’s global network,
more than just a flow of capital. It comprises We help New Zealand growth stage companies partnership opportunities for domestic venture from angel groups, high net-worth individuals,
a package that includes long-term capital, understand the capital raising process, support capital funds internationally and continue to private equity and venture capital firms, to
technology, market access, knowledge and them through the preparation stage to become connect Venture Capital funds to New Zealand multinational corporations.
capability. Local investors also play a crucial investment ready, and successfully connect them growth stage companies. In doing so we also
role in this process. Their involvement often with capital for internationalisation and scale. These connections are leveraged to support
support the New Zealand Venture Investment
provides the positive signal that international New Zealand companies with their export
Growth stage customers are often cash-flow Fund to deliver on its mandate.
investors are looking for in determining whether goals, and for investment into new greenfield
negative, have limited capability and capacity to
to invest themselves. Initiating Greenfield operations operations in New Zealand, including supporting
access channels and markets to scale, and need offshore Investors to establish their businesses
We also work to originate, develop and
accelerate commercial greenfield investment in New Zealand.
opportunities that capitalise on New Zealand’s
DEAL STAGE 1: STAGE 2: We are continuously working on fostering,
IDEA/DEAL PITCH/DEAL DOCUMENT CONDITIONS
PREPARATION DUE DUE AFTERCARE sustainable competitive advantage. Our focus
GENERATION DEVELOPMENT
& ATTRACTION DILIGENCE DILIGENCE
NEGOTIATION PRECEDENT building and developing our networks (our
is on new operations or initiatives that create
know-who) and looking for new sources
investment and employment opportunities at
of investment for our customers and
INVOLVED NOT INVOLVED INVOLVED scale, generating significant economic benefit
New Zealand opportunities.
for New Zealand.
16 NZTE Statement of Intent 2019-23 OUR OPERATING MODELS 17Focus areas both Māori companies and to New Zealand expertise accessible to our customers – anytime One is focussed on e-commerce, necessitated
We focus on sectors where we can have the from investment deals. Where Māori assets and they need it. A large part of our Knowledge by the global revolution in digital platforms that
greatest impact: where there is investor demand, capital are underutilised, NZTE’s Investment Way work programme has been focussed on are redefining consumer behavior, global supply
where New Zealand has a clear competitive can assist in building the Māori investment story, developing and curating hundreds of articles, chains and logistics, with significant implications
advantage and where there is strong economic helping Māori companies get investment ready videos, features, industry research and case for how New Zealand companies go to market.
benefit to New Zealand. NZTE Investment and generating opportunities for Māori entities, studies that we can serve up to customers,
In an increasingly digital world, we need to help
focuses on seven sectors for investment particularly with underutilised land. based on their individual preferences. We have
our customers access and navigate the digital
attraction: High-Value Food and Beverage, only just begun this work and over the next year
environment, and in a way that helps them
Fibre, Specialised Manufacturing, Technology, Digital we will continue to build this knowledge base as
capture value. As new channels redefine global
Renewable Energy, Advanced Transport, and An increased focus on the digital delivery of part of our Kāhu strategy.
value chains, New Zealand companies need to
Tourism. Across the focus sectors, there is also our offering to customers is a core part of our
Facilitating opportunities for our customers to navigate this carefully and intentionally.
a strong emphasis on sustainable land use, the Kāhu strategy.
learn from each other is another stream in our
regions, and the Māori Economy. The other practice area is focussed on
Over the past few years, NZTE’s digital focus has knowledge strategy. We have just begun piloting
sustainability and offering advisory services
Our focus on the Māori economy and the regions been on improving our IT environment, to ensure a ‘peer-to-peer matching’ initiative, where we
to New Zealand companies in this area. While
is to support a more inclusive New Zealand, our people have access to the technology can help a customer find someone else that has
attitudes to sustainability differ from market
driving investment which will generate greater they need to do their job effectively. Our Kāhu been through a similar experience. Within the
to market, sustainable credentials are growing
impact and lift the wellbeing of these areas. programme is focussed on improving our digital Customer Portal we have also created a forum
in importance as a way for companies to
service offering to our customers. We are for companies to engage with and get advice
differentiate themselves in existing markets and
NZTE’s Māori strategy moving into an increasingly digital environment, from each other. We will continue to look for
accessing new and emerging markets.
As part of the Government’s commitment and our customers are asking for more digital opportunities for companies to learn from each
to Māori economic development, NZTE has services and relationships. For NZTE this has other, to lessen their execution risk. These two areas were identified as key areas
a specific focus on Māori companies and the added benefit of enabling greater reach and of opportunity for our customers to grow
investment, and the implementation of the allowing us to scale at marginal additional cost. Practice areas their businesses internationally. The aim of
Māori-Crown Economic Growth Strategy, As part of our Kāhu strategy, we are gearing the practice areas is to build, grow and apply
A key part of our initial digital service offering
He kei kai aku ringa (HKKAR). ourselves up in two new global practice areas (or knowledge that will add value for our customers,
is the development of an online portal that
Centres of Excellence) where we think there is and identify the best way for them to access and
Māori economic development has huge potential will create a digital window into NZTE for our
enhanced value for NZTE customers. leverage that knowledge to deliver value.
to contribute to New Zealand’s future prosperity, customers. This will provide more information,
and NZTE is committed to growing more connectivity and collaboration in a digital
Māori companies of international scale across environment between NZTE and our customers.
a range of industries. This is a focus area and is For NZTE, these new digital customer
implemented through NZTE’s Te Pora Māori, or relationships will allow us to use the data
Māori Business Group, which works alongside and insights to better service customers and
NZTE’s Māori export and investment customers. improve how we work internally. It will also free
This team has the specialist Māori commercial up our people to have deeper interactions and
and cultural know-how and know-who to higher-quality engagements with customers.
engage with a wide range of Māori companies. Our Customer Portal will be gradually rolled out
At the same time NZTE is also focussed on across our various customer segments.
growing the Māori capability of all our people.
Knowledge
NZTE aims to find ambitious Māori exporters to
An important part of our Kāhu strategy is
bring into the NZTE portfolio and create impact
making sure our knowledge is captured,
for those customers in international markets,
catalogued and distributed in an intuitive and
whether through exports or investment. Our
effective way.
focus is on working with Māori companies to
increase the value of Māori exports year on A benefit of our Customer Portal is that it
year, and to increase the economic benefit to enables us to make more of our knowledge and
18 NZTE Statement of Intent 2019-23 OUR OPERATING MODELS 19What we offer our customers
As part of our operating models, The Customer capability and digital marketing. Where required, Our teams located in international markets assist with developing a fit-for-purpose
Way and The Investment Way, NZTE delivers a we can also provide Focus700 customers with have an in-depth knowledge of their market, coalition and collaborative agreements, as well
range of services, matched to a customer’s specific tailored coaching and support to identify growth appropriate business models, channels and as clarifying objectives, market selection and
needs and stage of their international journey. constraints, focus on priority areas and develop regulations. NZTE teams connect customers appropriate collaborative business models.
or refine business purpose, strategy, goals and with local experts, make introductions and
These services run the full range of the export NZTE helps customers invest in their growth
capital raising needs. facilitate meetings with regulators, potential
development life cycle, as well as leveraging by expanding their networks and growing their
distributors, partners, and customers. With the
the in-depth knowledge and experience of Offshore, we can boost customers’ global reach knowledge of investment and capital options.
imprimatur of the New Zealand government,
our people in how to compete and grow in a by tapping into our local and international Foundation Build customers receive access to
NZTE in-market can help open doors and
range of markets and industries. Onshore, NZTE networks to provide insights and support. The investment readiness advice from investment
overcome commercial barriers.
provides services to better prepare exporters to services we provide include information about managers and help to develop investment
go to market and to strengthen their business trends in markets and sectors, as well as in- Just as important is the peer-to-peer learning plans. For Focus700 customers, we provide
for sustained international growth. This ranges market immersion programmes and access to that we can facilitate. We help customers to bespoke connections with international and
from market research, to connections with NZ export promotion and investment events. For connect with other businesses to learn from local investors and access to co-investment for
Beachheads advisors and workshops on needs Focus700 customers and coalitions, we can their export experiences, as well as partner with specific growth projects that are most likely to
that are common to exporters irrespective of help with tailored market-specific plans and others to create scale and grow together. NZTE contribute to New Zealand’s long-term growth.
the markets they are targeting. These include customised in-market support. can help to identify like-minded businesses,
the fundamentals of exporting, improving sales
COALITIONS
MISSIONS
EVENTS
REGIONAL
ADVISORY
20 NZTE Statement of Intent 2019-23 OUR OPERATING MODELS 21Working with NZ Inc
Our NZ Inc partners are fundamental to
New Zealand. This is through a free online
marketing toolkit to help showcase the unique ONE GLOBAL TEAM
delivering our strategy. They provide expertise value that New Zealand offers the world through
We know that we can only provide optimal It’s about how we do what we do – we want
and services that benefit our customers and our people, culture and character.
value to our customers if our global team is to embody these characters working across
are beyond NZTE’s expertise. NZTE works with The New Zealand Story Group reports to an aligned in terms of how we work together. continents and time zones.
agencies such as the Ministry of Foreign Affairs independent Advisory Group made up of three We share five characters, which guide our
and Trade, the Ministry of Business, Innovation We believe that together, as One Global Team,
private sector members and six government actions and behaviour. It’s what we do and how
and Employment, the Ministry for Primary we can show the world just how big a small
agency Chief Executives, including NZTE (who we treat others. Ambition drives us, Adventure
Industries, and Callaghan Innovation, on a range country can be.
are the funding partners). With the foundations teaches us, Honesty frees us, Trust binds us,
of activities such as resolving non-tariff barriers, in place, the strategy is now focussed on and Manaaki is us.
ensuring companies know how to benefit from the continuous production of new content
Free Trade Agreements, and identifying and creation, communication and distribution of
co-ordinating work with shared customers. stories and content across the domestic and
international channels.
New Zealand G2G Know-How
NZTE’s joint venture with the Ministry of Foreign Expo 2020
Affairs and Trade, G2G Know-How, sells state- Together with our partner agency MFAT, NZTE
sector solutions to partner governments. G2G is organising and facilitating New Zealand’s
AMBITION ADVENTURE HONESTY TRUST MANAAKI
opens new pathways for exports by leveraging DRIVES US TEACHES US FREES US BINDS US IS US
participation at Expo 2020 Dubai. The Expo
Our ambition for Experimentation is We explore Our people may We celebrate the mana
the skills and experience of New Zealand’s will bring together 190 nations and 25 million our customers more powerful than challenges be worlds apart, (strength and dignity)
Government ecosystem and its various agencies. international visitors, from October 2020 is high, and we perfection as only with an open mind. but it’s trust that of each other as being
always rise to the through learning Only when we ask holds us together. equal to or greater
It does this by originating a pipeline of deals to April 2021. World Expos are international occasion. We help from our missteps questions and truly Growing a nation is than our own. We
meet their business can we truly listen can we only possible when strive to enhance mana
between the New Zealand Government and its celebrations of commerce, culture and industry expectations by succeed. That’s why discover we keep promises in everything we do
agencies and our partner governments. In this where participating nations showcase their expecting greatness ‘giving it a go’ is the the right way and honour through our hospitality,
of ourselves. best way to learn. forward. commitments. generosity and mutual
way G2G generates revenue for New Zealand economic and trade capabilities and advance respect.
suppliers and enhances diplomatic relations by their global reputation. New Zealand’s theme at
helping other governments improve their own Dubai is ‘Care for People and Place’. The Pavilion,
state-sector performance. located within the Sustainability precinct at the
Expo, will promote New Zealand as a country
The New Zealand Story to trade and partner with, invest in, study and
The mission of the New Zealand Story is to visit. For New Zealand companies, Expo 2020 is
“create storytelling and build our reputation in a unique high-profile opportunity to align with
international markets”. It is based on our belief the Pavilion’s story, reach a global audience and
in New Zealand as an innovative and creative make a lasting mark in a highly dynamic region
nation that cares for people and place for future and a global hub for travellers.
generations. With many businesses lacking the
skills or tools to build their story and a more
holistic view of the country, the New Zealand
Story Group was established to develop and
share a consistent and compelling story about
22 NZTE Statement of Intent 2019-23 ONE GLOBAL TEAM 23ORGANISATIONAL HEALTH:
PEOPLE AND CAPABILITY
He Tangata public and private sector who are committed to selection, development, management and • Individuals take responsibility for their own
At NZTE, it’s all about the people: He Tangata, raising the value of diversity and inclusiveness retention of all employees. We all contribute to, and others’ health and safety
He Tangata, He Tangata. We have learned that throughout the wider business community. and share in, the success of NZTE. • We proactively identify and regularly review
high engagement of employees means a better We have implemented policies and practices all our hazards
Prioritise the safety and wellbeing
experience for our customers, and we have • We anticipate, plan and prepare for safety for
of our people that include:
evidence of this getting better over time. all activities
The safety and wellbeing of our people is crucial.
• Leadership, accountability and culture
Through the Kāhu programme we have a We want our people to go home from work • We set the standard by what we walk past
• Recruitment, induction and selection
dedicated people strategy (He Tangata) that in the same or better condition as when they • We track incidents, root causes and
arrived. We are looking to invest in new health • Employee development, promotion and
sets out four strategic priorities: resolutions.
and safety technology, to improve the recording transition
• Support the growth of our people Our effort to look after the health and safety
and management of our critical risks. As part of • Flexibility and work design
• Build our ONE Global Team culture of our people is ongoing, and we ensure
our commitment to the wellbeing of our people • Remuneration, recognition and conditions
• Prioritise the safety and wellbeing of that it is kept top of mind through internal
we are also exploring how we might better
• Harassment and bullying prevention
our people communications, our Health and Safety
support their mental wellbeing and are planning
• Safe and healthy environments. dashboard and online training, as well as hazard
• Master our people experience. to roll out an online wellbeing platform, which
and incident management systems. We’re
allows users to monitor healthy habits like sleep,
Supporting the growth of our people exercise and eating well.
Safe and healthy environment continually learning how to keep our people
We’ve learned that our customers value At NZTE, the health and safety of our global safe from potential harm as they embark on
our expertise and our connections. We are Master our people experience team is paramount. We look after ourselves and travel, visit external workplaces, and encounter
continuing to increase the capability of NZTE’s We want to deliver an exceptional people each other. other hazards.
One Global Team through dedicated capability experience that enables our people to do their
NZTE’s Core Health and Safety Principles are: With offices all over the world, we know how
learning and developing programmes for our jobs and focus on what matters most. We
important it is to be prepared for a range of
people, including our leaders. are working to make the people experience • Individuals return home from work in the
natural disasters and business disruptions.
seamless throughout the lifecycle at NZTE, same, or better condition
Build our ONE Global Team culture enabled by great technology, data, processes
As part of our preparedness, we have a
• Leaders lead and create a safe work
When our global team works well together, it comprehensive Business Continuity Plan.
and practices. environment
really makes a difference to our customers. We
have two key focus areas to continue to build, Through these changes we are looking to deliver
namely around the safety and wellbeing of on our overall vision for our people:
our people and in delivering a great employee We have a strong ONE Global Team Culture
experience. This will help build our ONE Global where leaders lead. Our people grow while
team culture, underpinned by a commitment to at NZTE, through new experiences and
diversity and inclusion. challenging work.
Diversity and inclusivity
We are a diverse organisation, with people Good employer requirements
located in 40 countries around the world. We NZTE is committed to being a good employer
want to build an even more diverse and inclusive and an employer of choice. We are proud of
culture. We will do this through activities like our commitment to equality and our focus on
unconscious bias training, changes to the way having an even more diverse and inclusive work
we recruit and specific targets for diversity environment. We promote Equal Employment
of leadership teams. NZTE is a member of Opportunities through organisation-wide
Champions of Change, a group from across the practices relating to the recruitment and
24 NZTE Statement of Intent 2019-23 ORGANISATIONAL HEALTH: PEOPLE AND CAPABILITY 25MEASURING OUR PERFORMANCE NZTE’S PERFORMANCE FRAMEWORK
NZTE’s measurement framework is designed to measure how we are growing
our customers, and the economy, for the good of New Zealand.
We have two headline growth measures that our Focus700 customers with international
are aligned with our two sets of customers: revenues under $500 million, compared A productive, sustainable and inclusive New Zealand
with a New Zealand export revenue growth
• Are export customers growing their
benchmark; and
international revenue? Our purpose is to grow companies internationally
• Are we attracting and matching high
• Potential Direct Economic Impact (pDEI) for – bigger, better, faster – for the good of New Zealand.
investment deals of $2 billion per annum.
quality investment?
We also know that we need to have robust
NZTE’s impact on our customers is the key to
organisational health to achieve the outcomes
achieving growth. We look at measures such as:
we’re striving for. This means keeping our EXPORT CUSTOMERS INVESTMENT CUSTOMERS
Annual F700 Customer Growth Annual Investment Impact
• Are export customers achieving deals finances healthy and keeping a close eye on the % International Revenue Growth $ pDEI
in-market as a result of our efforts? safety, wellbeing and engagement of employees.
• Do our customers perceive that we are
To keep us on track, our Board and Leadership
positioning them for international growth?
Team monitor organisational performance
We have a range of indicators to track our through a monthly dashboard of key
performance indicators.
IMPACT MEASURES: CONTRIBUTIONS TO GROWTH
servicing and engagement, including Net
Promoter Score for our services. The two
At an operational level, a range of team and
headline measures that we use to assess our $ Export # International $ International Growth Customer View: $ Investment
individual dashboards provide information Deals Growth Outcomes Fund: pDEI & rDEI F700 NPS pDEI ratio
performance are:
to monitor and track performance against
• International revenue growth that is 3 individual and team key performance indicators.
percentage points higher per annum for
SERVICING & ENGAGEMENT INDICATORS
# NPS # F700
# % Annual
# # IGF # # Investment Customers
# F700 Businesses # Active customer
Foundation & SIF Foundation Services customers working with
Customers accessing Coalitions reviews
Customers grants Build NPS NPS (completed Callaghan
RBPN completed
deals) Innovation
ORGANISATIONAL HEALTH
% Safety and Wellbeing
# Leadership % Attendance
% Learning incidents and hazards % Challenge
% Employee achieving % Budget Kia Kaha
module reported, investigated Traffic Lights
Engagement 40/40/20 Variance (Cultural
completion and controlled/ (Green)
diversity programme)
closed within 4 weeks
GLOSSARY
F700 Focus700 customers NPS Net Promoter Score SPE Measures
pDEI Potential Direct Economic Impact RBPN Regional Business Partner Network Non SPE Measures
rDEI Realised Direct Economic Impact IGF International Growth Fund
SIF Strategic Investment Fund
26 NZTE Statement of Intent 2019-23 NZTE’S PERFORMANCE FRAMEWORK 27SECTION HEADER SECTION HEADER
NZTE’S INTERNATIONAL NETWORK
OUR IN-MARKET SUPPORT EUROPE EAST ASIA GREATER CHINA AUSTRALIA-PACIFIC
7 regions OFFICES OFFICES OFFICES OFFICES
40 languages Hamburg Bangkok Beijing Brisbane
40 international locations
Istanbul Ho Chi Minh City Chengdu Melbourne
London Jakarta Guangzhou Port Moresby
200 private sector advisors
Madrid Kuala Lumpur Hong Kong Sydney
270 offshore NZTE employees Milan Manila Shanghai, NZ Central
Moscow Seoul Taipei
Paris Singapore
Tokyo
Europe
United Kingdom
Greater China
East Asia
North America
NORTH AMERICA LATIN AMERICA INDIA, MIDDLE EAST
OFFICES OFFICES & AFRICA OFFICES
Los Angeles Bogotá Abu Dhabi
New York Mexico City Dubai
San Francisco Santiago Mumbai Australia and the Pacific
Vancouver São Paulo New Delhi
Washington Riyadh Latin America India, Middle East & Africa
Tehran
28 Statement
28 NZTE NZTE Annual Report
of Intent 2017/18
2019-23You can also read
