Surf Life Saving New Zealand Three Year Strategic Overview & Management Plan
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Surf Life Saving New Zealand
Three Year Strategic Overview
& Management Plan
2019/20 – 2021/22
Version: 2.1
Date: 1 May 2019
Surf Life Saving New Zealand Pelorus Trust Sports House, 93 Hutt Park Road, Seaview, Lower Hutt, Wellington 5010
PO Box 39129, Wellington Mail Centre, Lower Hutt 5045. www.surflifesaving.org.nz2019/20 Surf Life Saving New Zealand Strategy Map
Vision No one drowns on our beaches
SLSNZ Purpose To lead and support surf life saving in New Zealand in partnership with member clubs
Movement Purpose To enable all beach goers to enjoy New Zealand beaches safely
SLSNZ Support Clubs to deliver core Operational Excellence & Innovation National Leadership Business Resilience and securing our
Strategic services to agreed standards sustainable financial future
Priorities:
Outcomes • To ensure a focused approach • Improved consultation and decision • While clubs are sovereign entities, the • SLSNZ and member clubs to be in a
with available resources SLSNZ making/ change management movement will gain greater collective secure financial position.
will prioritise: process with clubs and other impact by collaborating and heading in a • SLSNZ to target $0.5m cash added to
o providing support for stakeholders. common direction. working capital each financial year via
club’s core operations • A culture focused on improved • Many voices with the same clear set of income growth, new income streams
that result in saving professional delivery of services and messages to stakeholders, and cost control.
lives on NZ beaches. clubs as the client. sponsors/funders and Government. • Long term aim is to have one year’s
o working with clubs that • Member development pathways are • Improved Internal Communications – the Opex in reserves (approx. $9m).
are struggling to meet attractive and understood. membership is informed about what is • SLSNZ Foundation to build a long term
minimum standards of • SLSNZ innovation focus narrowed to going on and why, in a timely manner. funding base.
service delivery relevant areas that support core service • Improved External communication – more
to their members, • Progress a sustainable funding model
delivery as the priority. people understand what we do and how for the movement with support from
beaches and we operate.
community. • Clubs encouraged to be the source of Central and Local Government.
innovation with SLSNZ to work with • A leading presence in prevention and
them to spread the benefits across education.
the movement.
• Improved health, safety and
wellbeing of staff and members.
Surf Life Saving New Zealand Pelorus Trust Sports House, 93 Hutt Park Road, Seaview, Lower Hutt, Wellington 5010
PO Box 39129, Wellington Mail Centre, Lower Hutt 5045. www.surflifesaving.org.nzSLSNZ Support Clubs to deliver core Operational Excellence & National Leadership Business Resilience and securing
Strategic services to agreed standards Innovation our sustainable financial future
Priorities
Measures • All clubs have a POM in place • Change management/ consultation • Have in place a clear strategic direction • Net Operating Surplus above budget.
for SLSNZ and are meeting it. process in place and working and messaging. • Reserves/Equity above budget.
• Club Health initiatives are in successfully. • A single voice working with Central • Retention of grant funding.
place for all clubs. • Significant core service operational Government and other key stakeholders. • Confirmation of future revenues.
• Delivery of Regional improvements/ innovations • Media coverage enhances the SLS brand • Capital programmes completed as
Management plans. developed and/or implemented by and public understanding of what SLS planned.
• A Volunteer Strategy is SLSNZ. does.
developed and implemented • Staff Satisfaction. • Effective internal communications
• Staff H&S. channels.
• Successful national beach safety
education programmes and campaigns.
Measures • No. of clubs in operational crisis • No. of refreshed lifeguards. • Consistent & aligned messaging • No. of clubs in financial crisis (target =
for the (target = nil) • Retention rate of lifeguards. internally and externally. nil).
movement • No. of club members. • No. of new lifeguards. • Increasing interclub engagement and co-
• No. of beaches & satellite • No. of new IRB drivers. operation (e.g. lifeguarding, sport,
locations patrolled. • No. of refreshed IRB drivers. development initiatives, knowledge
• No. of patrol hours. • No. of First Aid awards. sharing).
• Average hours per lifeguard. • Participation in other awards and dev.
• No. of beach drownings. opportunities.
• No. of drownings between the • No. of serious member injuries.
flags. • No. of member first aids.
• No. of rescues/ lives saved. • Significant operational improvement
• No. of people assisted to ideas/ innovations developed by
safety. clubs.
• No. of first aid patients. • Member/ club satisfaction.
• No. of searches.
• No. of preventative actions.
Values Credible Transparent Passionate AspirationalSLSNZ Management Plan
Strategic Overview:
Our Vision
No one drowns on our beaches
Our Purpose
To lead and support surf life saving in NZ
in partnership with member clubs
Our Values
• Credible
• Transparent
• Passionate
• Aspirational
Strategic Priorities
Support Operational National Business
Clubs to Excellence Leadership Resilience
deliver & & securing
core Innovation our
services to sustainable
agreed future
standards
Surf Life Saving New Zealand Pelorus Trust Sports House, 93 Hutt Park Road, Seaview, Lower Hutt, Wellington 5010
PO Box 39129, Wellington Mail Centre, Lower Hutt 5045. www.surflifesaving.org.nzPriorities High Level SLSNZ Actions
SUPPORT Deliver services and support to members and
clubs.
CLUBS Develop our people.
Deliver a nationwide surf sports programme
Deliver a high performance programme.
OPERATIONAL
EXCELLENCE Operational Excellence.
AND Operational Innovation.
INNOVATION
National Alignment
NATIONAL Improve communications with stakeholders
Position SLS as an essential rescue service and a
LEADERSHIP key player in the community.
Community Education
BUSINESS Maximise/ optimise existing revenues
Diversify income – develop new sources.
RESILIENCE Generate cash to rebuild reserves.
Build SLSNZ capability.Support Clubs to deliver core services to agreed
standards
High Level action 2019/20 2020/21 2021/22
Deliver services Deliver training & development programmes for lifeguards & club administrators:
and support to Skill Development/ member pathways, leadership programmes, PAM.
members and clubs
(Via Regional Provide programmes to assist clubs operate:
Management Plans NZLGB funding, national insurance scheme, preferential purchasing arrangements, co-
ordinating national and regional activities.
and National
initiatives)
Club Health initiatives to drive tailored support for individual clubs and monitor performance
of key functions (e.g. lifesaving capability).
Provide best practice resources via convenient channels:
Focus on priority areas e.g. H&S, member retention & recruitment tools, member protection
templates. Continually look to improve access channels – e.g. online, webinar, workshops.
Follow up Voice of Participant survey results with clubs.
Analyse member retention trends.
Review club development needs. Survey club development needs & use feedback.
Develop our People Ongoing enhancement of Member Pathways – curriculum, communication and member
understanding of them. Review & refresh courses and develop new qualifications.
Deliver Member Recognition programmes - Regional & national Honours & Awards
Deliver BP Leaders for Life programme
Expand range of qualifications on online learning platform.
Promote Duke of Ed Awards to the membership.
Rollout: Rock Rescue, Advanced IRB, 1 day
IRB Crewperson, Event Safety, Surf Official L3,
SAR Flood Rescue training and qualifications.
Develop a Volunteer Strategy. Implement Volunteer Strategy.
Deliver a Deliver a popular, safe and sustainable National & Regional Events programmes.
nationwide surf
sports programme
Improve pathways for surf sport participants – Athletes, Administrators, Coaches and Officials.
Encourage more cross-regional co-operation and support.
Update Sport Strategy.Deliver a high
performance sport Run the High Performance programme to win Rescue 2020 (Italy) and Rescue 2022
(Morocco) World Championship Teams events (assuming the format still exists).
programme
Update High Performance Strategy.Operational Excellence & Innovation
High Level action 2019/20 2020/21 2021/22
Operational Continuously monitor and look to improve national operating standards:
Excellence Operate National & local lifesaving committees, POM’s and audits. Update policies.
Follow new consultation model for change management.
Support clubs in obtaining the best appropriate equipment and facilities:
IRBs, rescue equip, vehicles, first aid, buildings, signage, systems, comms & technology.
Document and implement co-ordinated annual Sport, Lifesaving and Member Education Plans
that clearly set out what the annual actions are.
Run the Regional Lifeguard Programme:
All aspects of this service.
Ongoing enhancements to the PAM database.
Complete BOP, Coromandel and Wellington radio networks as funding allows.
Develop co-ordinated IT Strategy + implement ideas.
Upgrade Health & Safety resources internally and training for clubs.
IRB Injury research project
Update POM format
Operational Actively encourage & support a pipeline of innovation from lifesaving committees.
Innovation
Coastal Public Safety Assessments: Managed Nationwide rollout
Complete assessments for all key beaches: Includes identifying better signage & beach
access, appropriate patrol resources & timings, capability & infrastructure needs outside patrol
hours and relationships with external agencies.
Continue to develop, trial and implement new ideas
e.g. Stand up Paddleboards. Drones IRB enhancements
Rescue water craft licensing for clubs
Work with Councils as Safeswim programme rolls out nationwide
Future Operational Model(s) – Future Operational Future
define options from key Model(s) – consultation Operational
perspectives – clubs, public, (internal & external) on Model(s) –clarify
funders etc potential options/ pathways, pilot-
outcomes. review-refine,
start to
implement.National Leadership
High Level action 2019/20 2020/21 2021/22
National Regular engagement programme for Club Chairs – regionally and nationally. Support local
Alignment committee structures and maintain Regional engagement. Communications the core focus.
Actively facilitate sharing of information, best practice initiatives & collaboration between clubs.
Closer relationships with Northern Region.
Improve Enhance and promote the surf lifesaving brand on a national level.
communications Develop and implement a marketing strategy to better tell our story (what to say and via
with stakeholders what channel) to make sure people know we are a charity, of our youth development and
wider roles and activities, strengthen perceptions and the link between surf sport and
lifesaving, improve brand value and be more externally focussed (e.g. website and app).
Stories to help build pride, excitement & mana of individual lifeguards and also drive
membership, revenue add brand awareness
Proactive internal communications strategy and workplan: Improve effective two –way
communication channels across the movement.
Continue to deliver and enhance the stakeholder relationship strategy:
Stakeholders include members, clubs, commercial partners, funders, local and central
government, sector partners, ILS and international SLS organisations, media locally and
offshore and the general public.
Investigate scholarships for low
income families.
Position SLS as Play a leading role in water safety, SAR, education & lifesaving sectors, esp via WSNZ,
an essential NZSAR and Civil Defence.
rescue service
and a key player
in the community.
Community Enhance and promote core programmes: Beach Ed and if required Surf to School
Education
Develop a Community Education
Strategy
Implement Community Education programmes working closely with partners and other
sector agencies, especially WSNZ on joint initiatives and public education campaigns.
Develop, trial and implement new ideas
Enhance promotion of safety messages & collateral to the general public and develop/ test
new tools to make it easier for people to make better decisions, for example
Rip current mapping. Augmented reality tools (like SLSA).
Self-tests on capability. New immigrant messaging. Online games (like FENZ)
Video education (like MSC).Business Resilience and securing our sustainable
financial future
High Level action 2019/20 2020/21 2021/22
Maximise/
optimise existing Sponsors/ Commercial Partners:
Maintain relationships, improving service delivery, add new revenue dimensions to existing
revenues
relationships and assist sponsors to tell their ‘story’.
TSB partnership renewal
(ends Oct 19)
KFC partnership
renewal (ends May 20)
(ends Aug 17)
Foundation donations
Grants: Maintain relationships, processes and returns from grant applications. Focus on
rebuilding local/regional grants and a strong 2nd tier of national funding sources behind NZLGB.
Fundraising: Where funding available invest more in core programmes, especially Direct
Mail and regular giving programmes to reduce reliance on gaming grants.
NZSAR funding renewal HPSNZ funding Sport NZ funding
Diversify income – Additional ‘Major’ partner and more regional partnerships
develop new
sources
Central Government funding – new model as part of WSNZ Sector approach
Local Government funding – continue to seek more support from Local Govt
Local Govt – provide Coastal Research Assessments and Drowning reports
Local Govt –engage LGNZ & DOC. Enshrine
recognition and obligations in TLA document templates
Define legal
responsibilities of
Central and Local
Govt
Investigate and implement other realistic new initiatives:
Actions include: New commercial partners, new grant sources, new fundraising initiatives,
Alumni initiatives, merchandise/licensing, new ventures.
Maintain a pipeline of new ideas to investigate
Generate cash to Target $0.5m+ per annum free cash after CAPEX to rebuild reserves. Tight control of
rebuild reserves spending with more ‘earn before spending’ evolution of the business model.
Closely monitor risks: analyse ‘what if’ scenarios across all income streams.Build SLSNZ Create capability – structure &
capability people.
Ongoing SLSNZ Staff development, capability & succession planning programme and building
of the team culture – living the values.
Build a talent pool of external resources:
Need access to skilled people on a short term basis who can assist
to get key tasks/ projects completed. Business as usual is taking
up too much time but cannot be neglected.
Strategic Partnerships – define Strategic Partnerships
parameters to the scope of – develop frameworks to
partnerships. evaluate potential
partners.
Strategic Partnerships – build
Behind the scenes improvements/ innovation – Review BAU activities to improve
efficiency. Areas Include: Document management, Regulations, policies, processes,
employee systems, use of IT.
Maintain and build relationships with other emergency service organisations.
Key:
Key initiatives Business as Usual activitiesFinancial Objectives
Below is the last few year’s financial performance for SLSNZ:
Year Revenue Expenditure Profit/ Net Assets Working
(Loss) capital
2014/15 $9.087m $8.436m $0.651m $1.372m $0.248m
2015/16 $8.855m $8.594m $0.261m $1.453m $0.588m
2016/17 $9.542m $9.438m $0.104m $1.557m $0.538m
2017/18 $10.352m $9.955m $0.397m $1.954m $1.045m
2018/19 (est)# $10.486m $9.931m $0.555m $2.510m $1.370m
# Forecast v6
While the last five years have been positive steps in the turnaround, the fundamentals are still weak (e.g.
relatively little working capital/ cash reserves). The key issues are:
The business model that SLSNZ currently operates is not sustainable – operating on short term
sources of ‘at risk’ revenue (mostly 12 month timeframes) when the organisation has long term
cost commitments via staff, buildings, vehicles, programmes etc. Without large reserves this
model is highly vulnerable to income shocks. SLSNZ currently has minimal cash reserves.
Working capital at the end of the last financial year (30 June 2018) of $1.07m equated to 6 weeks
expenditure, well short of the ideal of at least 12 months.
Income Source 2017/18 ($) At Risk Risk Level Comment
Principal funder - NZ Lottery Grants Board 2,814,099 Yes High Annual contestable grant
Other Community Grants 672,686 Yes High Annual contestable grant
Water Safety NZ Inc Grant 165,000 Yes High Annual contestable grant
NZSAR Grant 200,000 Yes Med 3 Year contestable grant
Sponsorship 2,445,319 Yes High Contracts between 1 - 3 years
Council Funded Midweek Lifeguard Services 1,517,848 Yes High Contracts between 1 - 3 years, confirmed annually
Fundraising 488,338 Yes High Mainly direct mail donors - no certainty of receiving
Beach Education - User Pays fees 214,742 Yes Med Depends on takeup of programme by schools
Event Safety at 3rd party events 56,506 Yes Med Fees charged to event organisers event by event
Programmes & Services – Lifesaving 72,372 Yes Low Mainly external course fees on-charged to clubs
Sports events - User Pays fees 603,769 Yes Low Entry fees and rep team travel costs
Sport New Zealand - High Performance 244,632 Yes High 2 Year contestable grant
Sport New Zealand - Community 100,000 Yes Med 4 Year contestable grant
Licensing 18,488 Yes Med Commission on sales of licensed items (e.g. sunscreen)
Sale of Merchandise 45,696 Yes Med Sale of uniforms, IRB motors and equipment to clubs
Sundry Income 202,432 No N/A Mainly on-charge % of insurance premiums to clubs
TOTAL INCOME 9,861,927
At risk 9,659,495 98% 85% High Risk
Certainty beyond 1 year 2,989,951 30% 70% Only certain for up to a year
NZLGB as the main funder of SLSNZ, is subject to the success of Lotto, which is very dependent
on luck – how many large jackpots there are in a year. The level of funding NZLGB provides is
also only finalised in the last week of September each year, well into the financial year. Any
significant downsizing in this revenue stream at that late stage of the year is potentially
catastrophic. Base revenues are well below what they were 7-8 years ago, driven by a drop in gaming-sourced
grant revenue
Year Revenue
2010/11 $10.545m
2011/12 $10.431m
2012/13 $9.515m
2013/14 $9.412m
2014/15 $9.087m
2015/16 $8.855m
2016/17# $8.542m
2017/18* $8.613m
# Excludes one-off $1m grant from Infinity Foundation.
* Excludes one offs of $459k from BP 50th celebration, $175k from TSB rebrand and $615k NZLGB bonus.
Since 2010/11 base revenue has dropped some $1.9 million (18%).
Grant income outside of NZLGB and WSNZ in 2011/12 was $1.659 million, mostly from gaming-
related sources. By 2017/18, is down to $673,000, almost $1 million less.
While commercial sponsorships can fill the gap, these too are vulnerable. The $1 million per year
State Insurance sponsorship that started in 2010/11 lasted for 6 years but left a massive gap
when it ended.
Fundraising activities have had to be refocussed as traditional sources of funding (such as
running lotteries, street collections) have struggled with increasing competition for the donor
dollar. Despite these changes, SLSNZ has still gone backwards.
All the work done to grow other sources of revenue in the meantime has not been able to fill
these gaps. Revenue has slipped backwards and the organisation has had to downsize and
embrace the mantra of ‘doing more with less’.
Operational costs continue to escalate, for example insurance. Driven by earthquakes in
Christchurch and Kaikoura the cost of insuring clubs lifesaving assets (over $110 million) across
New Zealand has gone from under $200,000 per annum before the earthquakes to over
$700,000 for 2018/19, resulting in diversion of more NZLGB funding into this and asking clubs to
pay an increasing share of these costs.
The financial priorities for SLSNZ are very simple:
Security and certainty – removing the huge reliance on short term funding.
Stopping the slide and returning the quantum of revenue to previous levels.
Building a balance sheet with reserves that can better sustain the organisation if a major funding
shock was to occur. In this regard the objective remains a simple one – to as quickly as
possible build SLSNZ working capital to a level of $3.0 million (approx. 4 months
expenditure).
While a ‘game changing’ business model that will reduce the reliance on traditional revenue streams is
being worked on (including a new Foundation and a more direct Government funding model), these are
long term plays and in the meantime we have to work very hard just to stand still.
The reality is that the organisation will remain in a tight financial position for a number of years to come,
and must keep a very close eye on its financial health.
Targets will be aggressive to maintain the pressure on this aspect of performance.BUDGETS ($m)
($m) 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
(actual) (actual) (F/cast)# (Budget) (est) (est)
Revenue 9.54 10.35 10.49 9.97 9.70 9.80
Expenditure 9.44 9.96 9.93 9.51 9.25 9.35
Net Operating Surplus 0.10 0.39 0.56 0.46 0.45 0.45
plus Depreciation 0.34 0.35 0.22 0.25 0.20 0.20
Less Capex 0.50 0.23 0.45 0.15 0.15 0.15
=Cash Surplus -0.06 0.51 0.33 0.56 0.50 0.50
Net Assets (Total Equity) 1.55 1.95 2.51 2.97 3.42 3.88
Working Capital (SLSNZ) 0.54 1.04 1.37 1.93 2.43 2.93
Foundation – accum funds 0.0 0.14 0.20 0.50 1.00 1.50
Working Capital (inc Foundation) 1.57 2.43 3.43 4.43
# Forecast v6
Note: All Capital Expenditure (Capex) has to be funded from the Operating Surplus before any of the
surplus can be directed towards reserves. Operating Surplus figures are before any Balance Sheet
adjustments such as write-downs of assets, but these adjustments do not typically impact cash levels.How will we measure success?
Balanced Scorecards will be used with two levels of KPI’s:
• KPI’s for the performance of the SLSNZ business.
• KPI’s for the ‘health’ of the movement.
Below are the targets for 2018/19. Actual targets for 2019/20 will be set once the actual results for the
2018/19 year are known.
Performance of the SLSNZ business
KPI Area KPI Measure Target
All clubs have a lifeguarding POM In place and meeting it 100%
Support Clubs to Club Health tool in use with all clubs for 18/19 100%
Deliver Core (Target actions to be in place by 30 November 2018)
Services
Delivery of Regional Management Plans 100%
(Delivery of services for clubs completed as planned)
Net Operating Surplus above budget $0.133m
(Net Operating Surplus before adjustments to meet/ exceed budget)
Business Reserves/Equity above budget $1.91m+
Resilience (Year End Net Assets/Total Equity to meet or exceed target)
Retention of Grant Funding $3.288m+
(Grant Income to meet or exceed budget)
CAPEX Projects completed as planned $0.15m
(Budgeted capital spend has been achieved)
Confirmation of future revenues:
• Sponsor renewals (at same or higher value). DHL
• New major sponsor(s) In place by Jun
• SLSNZ Foundation Major donation
• Government Funding LT funding
Operational Staff satisfaction
Excellence & (Staff satisfaction surveys show satisfaction is at a good level) As good as LY
Innovation
Staff health, safety & wellbeing
(Reducing number of serious staff health & safety incidents) Less than LY
Change management process in place and working successfully Working well
Significant core service operational improvements/ innovations developed and/or At least 2
implemented by SLSNZ
National Clear strategic direction and messaging In place
Leadership
Single voice when working with Central Government & other key stakeholders In place
Media coverage enhances the SLS brand and public understanding Positive impact
Effective internal communication channels Working well
Successful national beach safety education programmes & campaigns
(Beach Ed attendances on or above budget – figs excl SLSNR) 23,000
(No. of high profile community education campaigns) TBCHealth of the Surf Life Saving Movement
KPI Area KPI Measure Target
No. of clubs in operational crisis (Requiring assistance to continue Nil
operating)
No. of club members (Same or more than last year) >18,642
No. of beaches patrolled (Same or more than last year) > 80
No. of patrol hours. (Same or more than last year) >230,104
Average hours/ lifeguard (Same or less than last year) 2,375
No. of first aid patients. (Same or more than last year) >2,910
No. of preventative actions. (Same or more than last year) >121,475
No. of searches. (Same or more than last year) >332
Business No. of clubs in financial crisis (Requiring assistance to continue Nil
Resilience operating)
No. of refreshed lifeguards (Same or more than last year) > 4,292
Retention rate of lifeguards (Same or more than last year) > 86%
Operational
Excellence & No. of new lifeguards. (Same or more than last year) >954
Innovation
No. of new IRB drivers (Same or more than last year) >164
No. of refreshed IRB drivers (Same or more than last year) >832
No. of First Aid awards (Same or more than last year) >2,470
No. of members needing 1st Aid (Down 5% on 83 last year)You can also read
