From transactions to outcomes: the Ministry of Social Development 2007-72.1

When the New Zealand Ministry of Social Development (MSD) was established in 2001, Social Services and Employment Minister Steve Maharey said that it would move the welfare system from a passive income transfer model, to an active investing-in-people approach, and lead the state sector in the direction of social development. MSD’s goal was to build “an inclusive New Zealand where all people are able to participate in the social and economic life of their communities”. Focusing on social development outcomes, rather than specified performance targets, would be a major departure for a Government social agency, and a challenge for the founding chief executive Peter Hughes.

This case gives the background of the transition from a transaction to an outcomes focus and can be used on its own or as an introduction to either or both of the associated case studies that explore the outcomes focus in practice: Responding to a call for help: co-ordinated case management in Papakura and Offering Help; the Ministry of Social Development and Marlborough’s viticulture industry. In turn, those cases can be used for stand-alone discussions.