The Growth Service Range
16. While the initial emphasis is on integrating the existing growth services offered by the two agencies, there is scope for some changes to service content in the short term. The approach here is to describe the proposed growth services model, and signal the changes that would be required to give effect to this.
Broad Approach
17. Appendix 1 sets out the proposed model for the growth services range. This approach involves:
- A relative emphasis on businesses with significant growth potential, while maintaining access to some assistance for a wider group of SMEs.
- An integrated approach to client management with a team of client managers as the primary interface with clients, providing appraisal and facilitating clients' access to the necessary expertise and resources they require to successfully grow their businesses. The level of engagement with clients will depend on their growth potential and needs. More intensive and proactive client management will be available for high-growth/high-impact potential clients.
- A mix of part-funded in-house and contracted services and the use of grants to part-fund the purchase of external assistance.
- The streamlining and simplification of grants, with the flexibility to address one or more of the barriers to firm growth discussed above.
Eligibility and Targeting
18. Trade NZ and Industry NZ currently maintain two respective approaches to governing access to "growth services":
- access to Trade NZ's International Business Consultancy and Facilitation services requires a potential client to demonstrate that it is both committed to and capable of exporting. Services have been targeted or varied depending on client demand, ability to add value and the client's growth objectives
- access to Industry NZ's Business Growth Service and Fund is based around unrealised growth potential. Because the fund has limited resources, assistance has been targeted where it is likely to generate the greatest net benefits to New Zealand.
19. In both of these cases, access to specialised assistance is also subject to the client's willingness to pay a part-charge for the service or part-fund the costs of a funded project.
20. Following integration, access to the growth services range will be subject to an assessment of a firm's (or group of firms) growth potential and also involve an assessment of the firm's commitment and capability to achieve that growth. The level of engagement with the firm, both in terms of client management time and the level of funding/specialist services available will depend on a more rigorous assessment of the company against agreed criteria. In particular, access to the more substantive Growth Services Fund (see paragraphs 29 - 38) will be governed by a higher-level test of growth potential. Businesses will be assessed against rigorous criteria, and funding will depend on the type and level of need as well as the anticipated impact on the business's growth (funding criteria are discussed later in this paper).
Client Management
21. Underpinning the decision to integrate Trade NZ and Industry NZ has been the call from the business community for a single client interface and stronger follow-through on critical issues throughout a business's development path. This involves a deeper understanding of a client's business, a service range that targets key barriers to firm growth, higher levels of service quality and better relationships. The approach to client management adopted by the new organisation will thus be critical to the success of the integration exercise.
22. We propose that NZ Trade and Enterprise give effect to the following specifications in developing the growth services client management approach:
- Growth services clients should be allocated a client manager who will be the primary interface between the client and the services/assistance offered by the organisation.
- Growth services client managers' role should be to assess eligibility against agreed criteria, undertake or facilitate the appraisal of clients' needs and to determine the appropriate mix of services that the new organisation can provide, provide appropriate mentoring and commercial counselling (but not strategic business advice or advice that would constitute investment advice), and facilitate referrals to specialist services and funding - both within the new entity and from other government business assistance programmes.
- The duration and intensity of client management service should be proportional to the client's growth potential, risk profile and level of need. For the client, this engagement will fluctuate over time as they negotiate difficult transition points or, by contrast, experience periods of stability and consolidation. The client base will change over time with new firms accessing growth services and other firms "graduating" or decreasing their interaction with NZTE.
- As well as working with clients, growth services client managers will need to establish and maintain linkages and partnerships with a range of individuals and organisations. This includes internal integration with other service range areas and supporting networks onshore and offshore, policy departments and other delivery agencies, and non-government providers of trade and business services. The offshore network of Trade Commissioners, working with the wider network of MFAT Posts, will be an important contributor to growth services. Partner organisations and private sector business advisors will be a major source of clients through referrals. In particular, NZTE should maintain the proactive approach to the identification of high growth potential business, working in partnership with local organisations, which has been established through the Fast Forward Programme.
23. Cabinet has signalled that services will need to be accessible and responsive to the needs of Māori, Pacific peoples and women [CAB Min (02) 30/4 refers]. Trade NZ has maintained a dedicated Māori Enterprise Team within its account management system for some years. This service has provided a high-level of responsiveness and effectiveness for Māori clients, and has received positive feedback during the stakeholder consultation process, and this approach will continue within the client management system.
24. The growth services client management system will draw on e-business tools. For example, the e-Business portal will link exporters to client managers and tailored services. The e-Business initiative is the subject of a budget bid for an additional $1.900 million (GST inclusive) as part of the GIF package for 2003/2004 and outyears.
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