Empowering New Zealand's water sector: a people-centric approach

This article was authored by Mary Kilkelly (Partner, Deloitte) and Jan Theron (Group Director - Water, AECOM).

The water sector in New Zealand is undergoing a once-in-a-generation transformation with the introduction of Local Water Done Well (LWDW). Councils are nearing the last few weeks of a mandatory process of analysis, decision-making, consultation, and planning. With short timelines and templated deliverables, it is tempting to focus on the immediate tasks and deadlines, rather than the bigger issues, long-term challenges, and fundamental enablers of successful water reform implementation. Reaching a decision around the future shape of local water entities is important, but not nearly as important as bringing your most critical resource – people, and their capabilities – on this transformation journey.

Local government brings valuable water expertise combined with deep community knowledge. However, many teams are not currently resourced or structured to deliver the scale of multi-year organisational change required by new legislative and regulatory reforms. Collaborating with organisations experienced in similar transformations offers valuable insights and guidance for councils and water service providers. This collaboration can provide essential support and strengthen capacity during this significant shift. While this can de-risk the transition to LWDW, it is extremely hard to design all aspects of the shift to your future organisational and water services delivery models with perfect foresight to deal with all the uncertainties, risks and unforeseen events that will be faced in the next decade.

With these considerations in mind, advocate for a people-centric approach, where councils are empowered to assemble skilled teams that maximise existing strengths, foster collaboration, and ensure leadership and the water workforce have the capabilities to address future challenges and uncertainties. In identifying expertise gaps and strategically integrating the right blend of skills and resources, councils can confidently navigate and sustain a successful transition from day one to day 1000 and beyond.

Long-term approach

Achieving sustainable water services requires a long-term commitment from local government – one that extends beyond the immediate needs of the LWDW planning, decision and transition period that is happening over the coming months. This isn’t just about producing a water services delivery plan; it’s about co-creating an enduring service model that meets the community’s expectations and regulatory obligations in the long term.

While councils and water entities face numerous pressures on the path to achieving fiscal sustainability, not all will be resolved during the transition period. Prioritising a people-centric approach enables councils to secure the right blend of skills and experience for the journey, rather than focusing solely on short-term changes at the expense of long-term outcomes. This strategic alignment helps achieve key milestones on the road to success and builds capabilities for the future.

Each council and water entity has unique strengths and challenges. It’s important to focus on developing, supporting and enhancing existing capabilities, beginning with an assessment of the current state of water services and assets across all layers of operations, including people, processes and technology, to identify any gaps in expertise and resources. Understanding the context positions councils to effectively enhance organisational strengths even as water service delivery is being transformed.

Integrating diverse expertise in water, local government, business, regulated industries, and the public sector is essential. Such a multidisciplinary approach enables entities to devise comprehensive solutions tailored to the specific needs of their local regions. Specialists can work closely with current project teams to ensure interventions are well-integrated and aligned with strategic goals. Expertise ranging from engineering and asset management to finance, technology, organisation design and governance is crucial for successfully transitioning and transforming from the current state of water services. Collaborating with specialists proficient in strategy development, financial modelling, risk management, regulatory compliance, technology and technical support, organisation transition and readiness will complement the deep understanding within local government water services of local needs and appropriate local solutions.

Various accelerators, tools, and frameworks can improve speed and quality, and better translate intent into action throughout each phase of the implementation and transition. These resources are designed to streamline operations and decision-making, improve service delivery, and ensure regulatory compliance. Drawing upon the resources and experience from New Zealand and overseas water services and reforms will be beneficial rather than inventing a unique version of best practice. This is a time of renewal for water service providers, and an opportunity to invest in growing and sustaining capabilities that will be critical for future success.

A people-centric approach to the LWDW transition should be grounded in local government’s commitment to developing and supporting existing in-house capabilities and focusing on creating capability for long-term success - rather than short-term change. By identifying expertise gaps and bringing the right blend of skills and resources at the right time, the workforce can be empowered to deliver successful outcomes with the right level of investment. Leveraging integrated expertise, adaptive pathways and accelerators, tools, and strong delivery frameworks will provide further support throughout the transition journey. Collaborative efforts are essential to navigate the complexities of LWDW and achieve long-term success in delivering sustainable water services.