Plan Guidance for 2017 and 2018: Investment Approach

Plan Guidance for 2017 and 2018: Investment Approach

Last updated 11 November 2016
Last updated 11/11/2016

The Investment Approach is about getting better returns for the Government’s investment in education.

We want to achieve this by focusing on three goals:

  • improving outcomes for learners and…
  • improving economic and social outcomes for New Zealand, underpinned by…
  • more effective system stewardship on the part of the TEC.

In giving effect to the Tertiary Education Strategy (TES), our approach will focus more on outcomes

In changing how we invest, we want to move away from focusing on inputs and outputs and to support better outcomes for graduates and New Zealand. This is in keeping with the message of the Tertiary Education Strategy (TES) that “achieving for New Zealand requires a strong focus on outcomes” (p.7).

We also want to invest in a way that supports a more sustainable and adaptable sector, by creating greater funding flexibility for tertiary education organisations to innovate and contribute to government priorities.

A key part of the Investment Approach is about developing and using better forms of measurement, information and tools for making investment decisions. In the future, this may potentially mean providing funding for different things to achieve our goals.

We’re starting by taking some small steps

But we want to start by making changes at the margins. In the next plan period, we’re focused on six areas where we can introduce operational changes to make some initial gains. We provide more information about these in the remainder of this online publication, and we’ll also be talking and working with you more over the next few months about the best way to get them off the ground.

At the same time, we’ll be seeking your thoughts on the longer-term changes we want to see in the future. We’ve set up a series of initial meetings, and we’ll be in touch soon with more details.

We’ve set up a series of initial meetings, and we’ll be in touch soon with more details.

Investment Approach: overview

The Investment Approach has three goals:
improving learner outcomes
improving social and economic outcomes
improving system stewardship
You've told us – and we agree – we need a tertiary education system that...

... is more learner focused and accessible to all New Zealanders
... makes it easier for learners to move into tertiary study and then on to employment
... has  performance measures that better reflect the education environment and wider marketplace that TEOs operate in
... is joined-up, efficient, sustainable and innovative
We're developing six "quick wins" for 2017–2018

shining a spotlight on fields of study with poor graduate employment outcomes
identifying strategic investment opportunities in SAC level 3+
technical improvements to education performance indicators
reducing compliance costs for private training establishments (PTEs) and community education providers around plan requirements
creating greater value from Investment Managers working with the sector
flexible funding models, including competitive funding at levels 1 and 2 and pilots for levels 3 and 4
And we're thinking about changes for the longer term

simplifying the method of engagement for all parties
funding providers with longer-term certainty where it is deserved
measuring value of investment in terms of outcomes and not simply completions
developing stair-casing capability within the sector
supporting tertiary education organisations to build their international reputations

Go to the next section: Strategic Engagement