Surf Life Saving New Zealand Three Year Strategic Overview
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Surf Life Saving New Zealand
Three Year Strategic Overview
2018/19 – 2020/21
Version: 1.2
Date: 4 April 2018
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.nzBelow is the Strategic Overview:
Our Vision
Saving lives in our communities while developing leaders and champions
Our Purpose
To lead and support surf life saving in NZ
Our Values
• Credibility
• Transparency
• Passion
• Aspiration
Strategic Priorities
Develop
Save Lives Leaders Engage Sustainability
and Communities
Champions
Leading to Outcomes of:
Vibrant, active clubs with strong membership bases.
Increased capability for operational excellence.
Awareness/ Credibility – the public understands and respects what we do as a
frontline rescue organisation and as a sport.
Sustainability for the movement.
A greater presence in prevention and education.Priorities High Level SLSNZ Actions
SAVE Deliver services and support to members and
clubs.
LIVES Operational excellence.
Operational innovation.
Public Education.
National alignment.
DEVELOP Develop our people.
LEADERS Deliver a nationwide surf sports programme.
Deliver a high performance programme.
AND
CHAMPIONS
ENGAGE Improve communications with stakeholders
Position SLS as an essential rescue service and a
key player in the community.
COMMUNITIES
Maximise/ optimise existing revenues
Diversify income – develop new sources.
SUSTAINABILITY Generate cash to rebuild reserves.
Build SLSNZ capability.Save Lives
High Level action 2018/19 2019/20 2020/21
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, national fundraising platforms (national appeals),
bulk purchasing arrangements, co-ordinating national and regional activities.
and National
initiatives)
Provide best practice resources via convenient channels:
Focus on priority areas e.g. H&S, member retention & recruitment tools, member protection
templates, income generating ideas, legal compliance requirements, planning/ strategy
templates, finance/budgeting tools, coaching programmes, community partnership ideas, IT,
diversity, best-practice. Continually look to improve channels – e.g. online, webinar,
workshops.
Use Club Health tools to drive tailored support for individual clubs and monitor performance
of key functions (e.g. lifesaving capability).
Operational Continuously monitor and look to improve national operating standards:
Excellence Operate National & local lifesaving committees, POM’s and audits.
Run the Regional Lifeguard Programme:
All aspects of this service.
Support clubs in obtaining the best appropriate equipment and facilities:
IRBs, rescue equipment, vehicles, first aid, buildings, signage, systems, communications
(SurfCom project) & technology.
Increase Health & Safety resources internally and training for clubs.
Complete BOP and Wellington radio networks as funding allows.
Upgrade decision making and consultation processes.Save Lives (cont’d)
High Level action 2018/19 2019/20 2020/21
Operational Continue to develop, trial and implement new ideas
innovation Rescue Water craft. Flag stands. SAR flood rescue capability.
Online learning. Stand up Paddleboards. Drones
PAM enhancements. IRB enhancements. GPS tracking.
Coastal Public Safety Assessments: Managed Rollout
Development and implementation of 10 year safety plans for 110 beaches: Includes: better
signage & beach access, appropriate patrols, capability & infrastructure outside patrol hours
and relationships with external agencies.
Actively encourage & support a pipeline of innovation from lifesaving committees, especially in
the use of IT.
Enhance and promote core programmes: Beach Ed and if required Surf to School
Public Education
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
Rip current mapping. Augmented reality tools (like SLSA).
Self-tests on capability. New immigrant messaging.
Corporate messaging.
National Alignment Regular engagement programme for Club Chairs – regionally and nationally. Support local
committee structures and maintain Regional engagement. Communications the core focus.
Actively facilitate sharing of information, best practice initiatives & collaboration between clubs.
Document and implement a co-ordinated Annual Lifesaving Plan that clearly sets out what the
annual actions are including ongoing enhancements and innovation for lifesaving.
Enhance closer relationships with Northern Region clubs.Develop Leaders and Champions
High Level action 2018/19 2019/20 2020/21
Develop our People Ongoing enhancement of Member Pathways – curriculum, communication and member
understanding of them.
(so they can step up
to any challenge and
Ongoing Staff development, capability & succession planning programme and building of the
be champions for team culture – living the values.
their communities)
Deliver Member Recognition programmes - Regional & national Honours & Awards
Deliver BP Leaders for Life programme
Deliver a Document and implement a co-ordinated Annual Sport Plan (as part of the five year Sport
nationwide surf Strategy) that clearly sets out what the annual actions are including ongoing enhancements
sports programme and innovation for surf sport.
Deliver a popular, safe and sustainable National & Regional Events programmes.
Improve pathways for surf sport participants – Athletes, Administrators, Coaches and Officials.
Identify and take opportunities to better promote surf sport, e.g. live streaming.
Encourage more cross-regional co-operation and support.
Deliver a high
Run the High Performance programme and win Rescue 2018 (Adelaide) and Rescue 2020
performance sport
(Italy) World Championship Teams events.
programmeEngage Communities
High Level action 2018/19 2019/20 2020/21
Improve Enhance and promote the surf lifesaving brand on a national level.
communications Develop and implement a marketing strategy to better tell the story to make sure people
with stakeholders 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 branding and be more
externally focussed (e.g. website and app).
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.
Electronic Systems Strategy Review + implement ideas.
Investigate scholarships for low
income families.
Position SLS as
an essential Play a leading role in water safety, SAR, education & lifesaving sectors, esp via WSNZ,
rescue service NZSAR and Civil Defence.
and a key player
in the community.
Develop a better understanding of future delivery expectations, capability required.Be Sustainable
High Level action 2018/19 2019/20 2020/21
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’.
Zespri partnership
renewal (ends Mar 19)
(ends Aug 17)
TSB partnership renewal
(ends Oct 19)
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.
HPSNZ funding renewal NZSAR funding renewal
Diversify income – Additional ‘Major’ partner and more regional partnerships
develop new
sources
Central Government funding – new model as part of WSNZ Sector Capability Review
Local Government funding – develop & implement strategy to better engage with Local Govt.
Touchpoint rollout
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 Behind the scenes improvements/ innovation – Review BAU activities to improve
capability efficiency. Areas Include: Document management, Regulations, policies, processes,
employee systems, use of IT.
Maintain and build relationships with other emergency service organisations.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.
Key:
Key initiatives Business as Usual activitiesTop 5 Priorities
Below is a table that aims to highlight top priority activities for the 2018/19 year:
Rank Priority
1 Support and guide clubs to deliver core services to agreed standards
SLSNZ can’t be everything to everyone. Focus needs to go onto providing support for
clubs core operations that result in saving lives on beaches. Priority to go into helping
clubs that are struggling to meet minimum standards relevant for their beach(es).
2 Professional Execution
Implement an improved consultation and decision making/change management process
with clubs and other stakeholders.
Through the appointment of a Chief Operating Officer drive a culture change which
focuses on improved professional execution and understanding of who is the customer.
Improved internal communications – the membership is well informed about what is
going on and why in a timely manner.
Improved external communications – more people understand what we do and how we
operate (volunteer based charity).
3 One Movement
While we have strength via clubs being sovereign entities we also want to maximise our
collective impact by having all clubs travelling in the same direction.
4 Innovation
Narrow the SLSNZ focus on innovation to areas that support core service deliverables.
Encourage clubs to be more innovative and spread the benefits across the movement.
5 Business Resilience and securing future sustainable funding
SLSNZ to target $500,000# cash added to working capital by the end of the year via
income growth and tight cost control (aiming towards one year’s OPEX in cash
reserves).
o At least one additional ‘Major’ partner.
o Develop significant new income streams (e.g. fundraising initiatives).
o SLSNZ Foundation starting to build long term funding base.
Progress a proposal for a central government sustainable funding model for the Surf Life
Saving movement and SLSNZ.
Continue to seek more support for clubs and SLSNZ from local government.
Note #: Currently the Cash Surplus in the 18/19 budget is $280k below this level (or $130k below if you
include the $150k growth being targeted for the Foundation).Regional Priorities
Below are the priority development activities to be incorporated into the Regional Management Plans for
2018/19:
Eastern
1. Re-sign/maintain a long term sustainable Eastern Region Principal Partner.
2. Maintain Core Regional Services – Focus on achieving 95% + of outcomes on an annual basis
as outlined in Regional Management Plan.
3. Focus on growing culture, capability and application of Health & Safety initiatives across the
Eastern Region Clubs.
4. Increase sustainable funding base for Regional Lifeguard Services to meet future needs. (aligned
to the 2018-2021 LTP submissions).
5. Maintain staff stability and focus on growing capability while creating efficiencies in processes.
Central
1. Enhance and improve the quality and delivery in Sport Events in the Central Region.
2. Develop then implement an accurate and sustainable asset management plan for the region
which includes ongoing maintenance of the SLSNZ buildings at Westshore and Port Taranaki.
3. Build more capability in the membership base in Lifeguarding, including IRB expertise.
4. Develop and implement an effective communications plan for the region.
Southern
1. Ensure staffing structure delivers the needs of the region the most effectively.
2. Deliver on what we say we will do through the management plans and the local sport and
lifesaving priorities.
3. Develop long term funding strategies and relationships for the region.
4. Ensure feedback is asked for, received and taken on board.
Northern
1. Work with SLSNR and clubs to support the priorities in the Region.Financial Objectives
Below is the last few year’s financial performance for SLSNZ:
Year Revenue Expenditure Profit/ Net Assets Working
(Loss) capital
2013/14 $9.412m $8.793m $0.619m $0.721m ($0.290m)
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 (bud) $9.160m $9.040m $0.120m $1.670m $0.870m
While the last three years have been positive steps in the turnaround from 2010/11, 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 – see table below) 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 no
significant cash reserves. Working capital at the end of the last financial year (30 June 2017) of
$540,000 equated to 3 weeks expenditure, well short of the ideal of at least 12 months.
Income Source 2016/17 ($) At Risk Risk Level Comment
Principal funder - NZ Lottery Grants Board 2,200,000 Yes High Annual contestable grant
Other Community Grants 1,566,839 Yes High Annual contestable grant
Water Safety NZ Inc Grant 168,120 Yes High Annual contestable grant
NZSAR Grant 200,000 Yes Med 3 Year contestable grant
Sponsorship 1,743,300 Yes High Contracts between 1 - 3 years
Council Funded Midweek Lifeguard Services 1,402,614 Yes High Contracts between 1 - 3 years, confirmed annually
Fundraising 482,076 Yes High Mainly direct mail donors - no certainty of receiving
Beach Education - User Pays fees 208,033 Yes Med Depends on takeup of programme by schools
Event Safety at 3rd party events 99,749 Yes Med Fees charged to event organisers event by event
Programmes & Services – Lifesaving 92,904 Yes Low Mainly external course fees oncharged to clubs
Sports events - User Pays fees 531,686 Yes Low Entry fees and rep team travel costs
Sport New Zealand - High Performance 112,471 Yes High 2 Year contestable grant
Sport New Zealand - Community 99,610 Yes Med 4 Year contestable grant
Licensing 68,286 Yes Med Commission on sales of licensed items (e.g. sunscreen)
Sale of Merchandise 38,752 Yes Med Sale of uniforms, IRB motors and equipment to clubs
Sundry Income 127,350 No N/A Mainly oncharge % of insurance premiums to clubs
TOTAL INCOME 9,541,790
At risk 9,414,440 99% 80% High Risk
Certainty beyond 1 year 2,155,381 23% 77% 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
downsizing in this revenue stream at that late stage of the year is potentially catastrophic, with a
sizeable drop in that $2.2m funding potentially forcing SLSNZ into liquidation with its current level
of reserves. Revenues have been steadily dropping over the last six years, 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
# Excludes one-off $1m grant from Infinity Foundation
Over the six years revenue has dropped some $2 million (19%).
Grant income outside of NZLGB and WSNZ in 2011/12 was $1.659 million, mostly from gaming-
related sources. By 2016/17, excluding the one-off grant from Infinity Foundation, this was down
to $565,000, some $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
$650,000 for 2017/18, 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 cash reserves to a level of $2.5 million (approx. 4 months expenditure).
While a ‘game changing’ business model that will reduce the reliance on traditional revenue streams is
being worked on (including a new Foundation and a more direct Government funding model), these are
long term plays and in the meantime we have to work very hard just to stand still.
The reality is that the organisation will remain in a tight financial position for a number of years to come,
and must keep a very close eye on its financial health.BUDGETS ($m)
($m) 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
(actual) (actual) (F/cast) (bud) (est) (est)
Revenue 8.86 9.54 9.35 9.17 9.60 9.70
Expenditure 8.60 9.44 9.23 9.03 9.10 9.20
Net Operating Surplus 0.26 0.10 0.12 0.13 0.50 0.50
plus Depreciation 0.34 0.34 0.35 0.22 0.20 0.20
Less Capex 0.21 0.50 0.14 0.13 0.15 0.15
=Cash Surplus 0.39 -0.06 0.33 0.22 0.55 0.55
Net Assets (Total Equity) 1.45 1.55 1.67 1.80 2.30 2.80
Working Capital 0.59 0.54 0.87 1.09 1.64 2.19
Foundation 0.0 0.0 0.05 0.20 0.50 1.00
Total Cash incl Foundation 0.59 0.54 0.92 1.29 2.14 3.19
Note: Forecast ver 6 – excludes BP Every Litre Counts revenue.
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 tentative figures for 2018/19 and will be updated when 2017/18 actuals are known.
Performance of the SLSNZ business
KPI Area KPI Measure Target
Vibrant, active clubs All clubs have a lifeguarding POM In place and meeting it 100%
Club Health tool in use with all clubs for 18/19 100%
(Target actions to be in place by 30 November 2018)
Delivery of Regional Management Plans 100%
(Delivery of services for clubs completed as planned)
Increased Capability Staff satisfaction
(Staff satisfaction score in Best Workplaces survey is at a good level) Better than LY
CAPEX Spend vs. Budget Projects completed
on budget
Awareness/ Credibility Retention of Grant Funding 100%
(Grant Income to meet or exceed budget)
No. of drownings between the flags Zero
Health & Safety Targets met
(Injury reduction targets achieved) Reduction from
17/18
Clean Audit
(Auditors ‘Management letter’ raises no material issues) No big issues
National Sports Event Participation
(Entries at major National sports events are the same or above last year) Entries maintained
Sustainability Net Operating Surplus above budget $0.13m
(Net Operating Surplus before adjustments to meet/ exceed budget)
Reserves/Equity vs. Budget
(Year End Net Equity to meet or exceed target) $1.80m+
Confirmation of future revenues:
• Sponsor renewals (at same or higher value). TSB/ Zespri
• Additional ‘major’ sponsor In place
• Other new sponsors Target $ met
• SLSNZ Foundation Target $ met.
• Government Funding (discussions underway). Taking place
Greater presence in No. of attendees at kids’ education events
prevention/ education (Beach Ed attendance on or above budget) 23,000+Health of the Surf Life Saving Movement
KPI Area KPI Measure Target
Vibrant, active clubs No. of club members (Same or more than last year) >18,723
No. of beaches patrolled (Same or more than last year) > 80
No. of patrol hours. (Same or more than last year) >223,019
No. of searches. (Same or more than last year) >290
Average hours/ lifeguard (Same or less than last year) 3988
Retention rate of lifeguards (Same or more than last year) > 89%
No. of new lifeguards. (Same or more than last year) >994
No. of new IRB drivers (Same or more than last year) >166
No. of refreshed IRB drivers (Same or more than last year) >864
No. of First Aid awards (Same or more than last year) >1737
Awareness/ Credibility No. of rescues/ lives saved (Same or more than last year) >612
No. of people assisted to safety (Same or more than last year) >1,184
No. of first aid patients. (Same or more than last year) >2,443
No. of beach drownings
(End Oct –Easter) (Same or less than last year) 308,464You can also read
