4. Recommendations
Based on the discussion in Section 3 and the findings of the seven component reports, we propose the following:
4.1 The Future of the BIZ Programme
[1] The BIZ programme should continue in its present form as the principal government mechanism for developing management capability in New Zealand's SMEs.
[2] The "local autonomy" model should continue, with organisations:
- identifying needs in terms of management capacity building (primarily but not necessarily exclusively at a local level) and information referral; and
- delivering services to meet those needs through contractual arrangements with the Crown.
4.2 BIZ Training
[3] The focus of BIZ training should continue to be on assisting communities to design and deliver specific responses to developing general management skills in SMEs at a basic level and across a range of skill areas.
[4] The process of identifying needs in management capability building should be strengthened, involving both providers and, to a lesser extent, the Ministry/Industry NZ. Providers should be required to base future proposals on clear identification of these needs, to a much greater extent than in the initial tender round.
[5] This process should be supported by the development of an explicit framework that assists providers to:
- understand the broad concepts of "management capability" as a way of improving SME performance;
- identify the particular needs of SMEs (whether they are formally "targeted" by the Ministry or not) which are not met by existing services; and
- design programmes that meet the needs of the target groups (whether across a broad range of basic management skills or in specialist areas) and develops existing strengths at both a community and an individual level.
[6] Providers who are offering general management skills should have a greater focus on developing needs-driven, integrated responses, with more emphasis on
- diagnosing the needs of the individual and the business; and
- offering post-training coaching and mentoring
as well as delivering effective training.
[7] General services may be complemented with specialist training (at a local, multi-regional or national level) where a gap in provision is identified.
[8] Serious consideration should be given to broadening eligibility to include start-up and pre-start-up businesses for BIZ training, which has consistently been identified as the major omission from BIZ, with significant potential benefits from an extension. It is acknowledged that any significant provision of services to these groups would require additional funding.
[9] The free-of-charge basis of BIZ training should continue.
[10] Providers should be encouraged to develop mechanisms for meeting the needs of clients who need higher level skills, either by providing these services themselves, or through referrals to other suitable providers. These should not be funded by BIZ however; as clients develop an awareness of their own requirements (and limitations) from basic courses etc, they should be more willing to pay for development of higher level skills.
[11] Industry NZ should develop a distinctive "brand" for the training component of the BIZ programme, separate from BIZinfo and its own organisational identity.
[12] A greater emphasis should be placed by the BIZ Unit and providers on developing the competencies of providers and improve the quality of services delivered, though a provider development agenda - a deliberate process to identify and share best practices, for example performance standards, course frameworks, diagnostic processes, course materials, approaches to marketing etc. We note that this has resource implications, as it may not be possible within current resources.
[13] In the next tender round providers should be required to demonstrate that they have highly skilled trainers, with access to high-quality resources, and effective systems in place and maintained (for example, through a budget for staff training and training material development).
4.3 BIZinfo
[14] BIZinfo should continue to operate as a separate service from BIZ training, in order to provide owners and managers of SMEs with a wide range of business-related information.
[15] BIZinfo should continue to focus on:
- building and maintaining a comprehensive database of business-related information; and
- effectively delivering that information to the different target groups.
[16] Prior to the next contract round the BIZinfo provider and the BIZ Unit should reassess the delivery mechanisms for BIZinfo, in consultation with BIZ providers. From this evaluation, we would emphasise the following.
[17] The BIZinfo database must be recognised as central to the service, and its contents and accessibility continue to be enhanced.
[18] The BIZinfo website should continue to be developed on an ongoing basis.
[19] The 0800 operation should continue. Consideration should be given to operating it through a single national call centre, with an enhanced referral database and further training for call centre staff.
[20] The local BIZinfo centres should not continue in their present form, as the present model of co-location with other business services, resulting in a minimal commitment of staff time at a variety of locations, has not generally been effective.
4.4 Improving Efficiency of BIZ
[21] Provider contracts should have greater standards of performance measures and remedies for non-performance.
[22] Significant enhancements to operations which are recommended include the development of:
- measures of unit costs of service delivery (e.g. costs per training course and/or per seminar or mentoring session) to compare and benchmark providers;
- standards of quality of service delivery; and
- a more robust and standardised method of assessing client satisfaction with courses, professionally designed and operated independently of providers.
[23] A common registration form for prospective BIZ clients should be developed for the purpose of enabling providers to confirm the eligibility of potential clients. This could incorporate the diagnosis or determination of the level of the client for assigning a course that best suits their needs. It could also be useful for audit purposes, capturing data for later evaluation, and directing clients to subsequent assistance.
4.5 Improving Programme Implementation
[24] Future tender rounds need to have sufficient time to permit better preparation of proposals by providers, and careful consideration of them by the Ministry.
[25] Some flexibility for allocating funds during and outside the formal tender process should be retained, to permit the Ministry to initiate new or innovative services and to respond to emerging needs.
4.6 Target Group Delivery
[26] The existing support and funding for services targeted at Maori and Pacific Peoples should continue.
[27] Courses with a specific Maori/Pacific Peoples focus should be directed at entry-level and early-stage business people, as these groups would benefit the most from such a focus.
[28] Eligibility criteria should be defined or interpreted liberally with regard to the types of business, to avoid excluding non-standard types purely because of their legal structure - in particular iwi- and hapu-based businesses.
[29] Targeting of Maori and Pacific Peoples clients for BIZ services should be based around their specific networks, such as churches. Gaining credibility with opinion leaders in Maori and Pacific Peoples communities is critical in this regard.
[30] Women already participate in BIZ services to a considerable extent (comprising 61% of BIZ training participants), and there is no continuing need for targeting towards them.
[31] While the Ministry should continue to identify Maori and Pacific Peoples as specific target groups, the next tender round should also allow providers to specify other groups that are of particular relevance in their communities, e.g. new migrants.
4.7 Other Issues
[32] We note that BIZ is now under the umbrella of Industry NZ. We have no formal recommendations about the future role of BIZ within Industry NZ, as this is beyond the scope of the evaluation.
[33] However, the establishment of Industry NZ does provide an opportunity for BIZ to be repositioned as an important part of a fully integrated programme of business assistance. The development of new initiatives by Industry NZ needs to be managed with care, to ensure that the clear objectives, services and "brand" of the BIZ programme are not lost or subsumed in the broader strategies of Industry NZ.
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