Surf Life Saving New Zealand Three Year Strategic Overview & Management Plan - Surf Life Saving NZ
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Surf Life Saving New Zealand
Three Year Strategic Overview
& Management Plan
2018/19 – 2020/21
Version: 1.3
Date: 23 October 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
Support Operational One Business
Clubs to Excellence Movement Resilience
deliver & & securing
core Innovation our
services to sustainable
agreed future
standards
This then leads to the one-page Strategy Map on the following page.2018/19 Surf Life Saving New Zealand Strategy Map
Vision Saving lives in our communities while developing leaders and champions
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 One Movement 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, • SLSNZ and member clubs to be in a secure
with available resources SLSNZ making/ change management the movement will gain greater financial position.
will prioritise: process with clubs and other collective impact by 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 • One clear set of messages to income growth, new income streams and
that result in saving professional delivery of services and stakeholders, sponsors/funders and cost control.
lives on NZ beaches. clubs as the client. Government. • Long term aim is to have one year’s Opex in
o working with clubs that • Improved Internal Communications – • Many voices with the same reserves (approx. $9m).
are struggling to meet the membership is informed about messages. • SLSNZ Foundation to build a long term
minimum standards of what is going on and why, in a timely funding base.
service delivery relevant manner.
to their members, • Progress a sustainable funding model for the
• Improved External communication – movement with support from Central and
beaches and more people understand what we do
community. Local Government.
and how we operate.
• SLSNZ innovation focus narrowed to
areas that support core service
delivery as the priority.
• Clubs encouraged to be the source of
innovation with SLSNZ to work with
them to spread the benefits across
the movement.
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 & One Movement Business Resilience and securing our
Strategic services to agreed standards Innovation sustainable financial future
Priorities
Measures • All clubs have a POM in place • Change management/ consultation • Aligned strategic direction and • Net Operating Surplus above budget.
for SLSNZ and are meeting it. process in place and working messaging to media between • Reserves/Equity vs budget.
• Club Health tool in place in all successfully. SLSNZ and SLSNR. • Retention of grant funding.
clubs. • Significant core service operational • Single voice working with Central • Confirmation of future revenues.
• Delivery of Regional improvements/ innovations Government. • CAPEX vs budget.
Management plans. developed and/or implemented by • Media protocols in place and
SLSNZ. working.
• Staff Satisfaction.
Measures • No. of clubs in operational crisis • No. of refreshed lifeguards. • Consistent & aligned messaging • No. of clubs in financial crisis (target = nil).
for the (target = nil) • Retention rate of lifeguards. across the media.
movement • No. of club members. • No. of new lifeguards. • Media coverage only enhances the
• No. of beaches & satellite • No. of new IRB drivers. SLS brand
locations patrolled. • No. of refreshed IRB drivers. • Degree of interclub engagement
• No. of patrol hours. • No. of First Aid awards. and co-operation (e.g. lifeguarding,
• Average hours per lifeguard. • Participation in other awards and dev. sport, development initiatives,
• No. of beach drownings. opportunities. knowledge sharing).
• 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 Credibility Transparency Passion AspirationSLSNZ Management Plan
Priorities 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 Operational Excellence.
EXCELLENCE Operational Innovation.
Public Education
AND
INNOVATION
ONE National Alignment
Improve communications with stakeholders
Position SLS as an essential rescue service and a
MOVEMENT
key player in the community.
BUSINESS Maximise/ optimise existing revenues
Diversify income – develop new sources.
RESILIENCE Generate cash to rebuild reserves.
Build SLSNZ capability.
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.nzSupport Clubs to deliver core services to agreed
standards
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).
Develop our People
Ongoing enhancement of Member Pathways – curriculum, communication and member
understanding of them.
Deliver Member Recognition programmes - Regional & national Honours & Awards
Deliver BP Leaders for Life programme
Deliver a
nationwide surf Deliver a popular, safe and sustainable National & Regional Events programmes.
sports programme
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
performance sport
programme Run the High Performance programme and win Rescue 2018 (Adelaide) and Rescue 2020
(Italy) World Championship Teams events.Operational Excellence & Innovation
High Level action 2018/19 2019/20 2020/21
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.
Document and implement co-ordinated Annual Sport, Lifesaving and Education Plans that
clearly sets out what the annual actions are.
Increase Health & Safety resources internally and training for clubs.
Complete BOP and Wellington radio networks as funding allows.
Upgrade decision making and consultation processes.
Electronic Systems Strategy Review + implement ideas.
Operational
Innovation Continue to develop, trial and implement new ideas
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.
Public Education
Enhance and promote core programmes: Beach Ed and if required Surf to School
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.One Movement
High Level action 2018/19 2019/20 2020/21
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.
Closer relationships with Northern Region clubs.
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.
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.Business Resilience and securing our sustainable
financial future
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.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.
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
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 $9.862m $9.601m $0.261m $1.818m $1.070m
# Excludes SLSNZ Foundation
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
downsizing in this revenue stream at that late stage of the year is potentially catastrophic, with a
sizeable drop in that $2.8m funding potentially forcing SLSNZ into liquidation with its current level
of reserves. 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 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) (actual) (bud) (est) (est)
Revenue 8.86 9.54 9.86 9.17 9.60 9.70
Expenditure 8.60 9.44 9.60 9.03 9.10 9.20
Net Operating Surplus 0.26 0.10 0.26 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 0.23 0.13 0.15 0.15
=Cash Surplus 0.39 -0.06 0.38 0.22 0.55 0.55
Net Assets (Total Equity) 1.45 1.55 1.82 1.95 2.45 2.95
Working Capital 0.59 0.54 1.07 1.29 1.84 2.39
Foundation 0.0 0.0 0.14 0.20 0.50 1.00
Total Cash incl Foundation 0.59 0.54 1.21 1.49 2.34 3.39
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.
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 vs. 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 Spend vs. Budget $0.15m
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 score in Best Workplaces survey is at a good level) As good as LY
Innovation
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
One Movement Aligned strategic direction and messaging to media between SLSNZ & SLSNR In place
Single voice when working with Central Government In place
Media protocols in place and working Working wellHealth 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
