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Thursday, July 4, 2024

Professor Robert MacCulloch: 1st Year Performance Review - Luxon is a good team leader & people manager...


1st Year Performance Review: Luxon is a good team leader & people manager, but not a "PM" who's designing rules & incentives to improve the nation's efficiency and fairness, which is his KPI.

A political leader is a person who has the power to change the rules & laws that govern our lives. A person who sets the rules of the game. That is what defines good government - it sets up the institutional framework of a nation that allows private individuals to prosper.

Having done so, politicians should not choose the teams. Just like how governing bodies of sporting groups, like rugby, Formula 1, or cricket, that are responsible for setting the rules of the games, don't choose the teams. Yet across all spheres of government, Luxon is looking more like a PM who accepts rules and tries to up performance, taking those rules as given. In other words, he is turning out to look more like someone who is comfortable managing, and less like someone who is comfortable governing.

What's the evidence? Luxon has already boycotted ACT's David Seymour's proposed legislation that we should be equal under the law. Rule changes on such matters are not territory Luxon likes to enter. Moreover, he is going to keep Health NZ intact, thinking its problems can be solved by putting up a sign, "Under New Management". This week he said that he wants to see “big change” within [Health NZ] given the billions it received in the Budget & current state of the system. “Health NZ needs to be a high-performing organization, because we’re putting big money [in] and I want to make sure it’s a high-performing organization with a great leadership team.” Health NZ is only a big organization receiving big money because of the rules laid down by the government. Those rules ensure that NZ has a highly centralized system, where the government not only pays the bills, but also provides most health services. NZ's system, like the UK's National Health Service, is failing. New rules need to designed. The government should keep paying health bills, either directly or through a social insurance scheme, but the rules must be changed to allow us to individually choose our own health provider, whether it be public or private. The providers should compete on quality. Such a system is ruled out in NZ.

When it comes to Kiwi Rail, the Minister of State Owned Enterprises, Paul Goldsmith, has stated the rules will not be changed. It will not be privatized & neither will any of the State Owned Enterprises in NZ. Instead, Luxon & Goldsmith believe that replacing the Chair & Senior Leadership Team can resolve its problems. Again it is "Under New Management", but rule changes have been ruled out. When Richard Prebble was Minister of State Owned Enterprises, he privatized 22 of them. National will privatize zero.

On and on it goes. It has become clear that the National Party under Luxon will not greatly change the rules of the game that govern banking, nor supermarket, competition. Quite the opposite, the managers running the Big Banks have been canonized by the PM as good, "A- Lister" types, and invited on business trips with him. They've been quietly assured that the rules governing their industry will not be greatly changed.

Will the PM at some stage realize his Key Performance Indicator is not to choose Senior Leadership Teams, but instead design laws & rules that incentivize others to work hard & compete, to create level playing fields & opportunity for all, regardless of how big or small is their firm, regardless of whether they are an A- or C-Lister, regardless of whether they work in the public or private sector, and regardless of their background & ethnicity? From what we know, that is not how he sees his job description. The one he has defined for himself is follows: "I want to make sure it’s [government] a high-performing organization with a great leadership team". Yet most who voted National, ACT & NZ First would prefer government barely existed as an organization & don't care about its leadership teams. But they do care about the rules & laws that govern their everyday lives.

Sources
https://newsroom.co.nz/2024/07/02/adams-health-nz-departure-big-loss/?utm_medium=Social&utm_source=LinkedIn#Echobox=1719947436-2


Professor Robert MacCulloch holds the Matthew S. Abel Chair of Macroeconomics at Auckland University. He has previously worked at the Reserve Bank, Oxford University, and the London School of Economics. He runs the blog Down to Earth Kiwi from where this article was sourced.

13 comments:

Kiwialan said...

Robert, Luxon is a gutless fence sitter who is not doing the job that National were given the mandate to do. The maorification of the Country is continuing, te reo still forced onto school kids and us big people through woke govt departments, newspapers, TV and radio, Hosking being the exception. He has the power to sack the top propagandists in the education system, the idiots at the Reserve Bank and the woke apologist police commissioner but does nothing. David Seymour will be getting both of my votes next time, I am a very disappointed lifelong National supporter. Kiwialan.

Reggie said...

In short Luxon’s not a statesman, and maybe not even a leader. He’s really just a manager. Seymour would be a better PM because he is a statesman. He sets the rules to use your terminology. Seymour is clearly smart and formulates sound, rational policies. Sadly he gets virtually no press coverage from our biased MSM.

Luxon just disappoints. I still don’t have a good sense of what he stands for, what his main values and ideas are. He just seems to tip toe around trying to please everyone, but by doing so pleases no one! And his strong spiritual back drop fills me with trepidation…

Anonymous said...

Succinct and on the money, as usual.

Luxon, like all narcissists, hasn’t and can’t read the room. As Enoch Powell once said, all political careers end in failure. For Luxon that failure now looks far more eminent than it should have otherwise been if he’d stuck to his electioneering mantra of getting us “back on track.” He has (very shortly it will be, had) the opportunity to really turn the country around and leave a lasting legacy for the ultimate benefit of all New Zealanders. But it appears he won’t and will continue sitting on the fence pandering to the aspirations of a certain cohort of part-Maori that seek to divide the country for their benefit.

Like Ardern, history will not remember him fondly, but I suppose his ‘A Lister’ “mates” might throw him a bone, if they deem he hasn’t outlived his usefulness.

DeeM said...

Classic National.
Promise to change everything bad then keep most of it.

Luxon lacks vision and is happy to maintain the status quo, even when that discriminates against 83% of the population, rather than sort out the diabolical mess Labour left the country in.
He's happiest in his executive meeting room, aka Cabinet room, away from the coal-face, directing his legion of upper and middle level managers.

Nothing substantial will change under a National led government. Exactly what I expected.

Basil Walker said...

Mr Luxon PM, needs to be enlightened by the Coalition partners that the Coalition have a long term view and desire to stear NZ to better times for the citizens and a healthy NZ fiscal position as they implied in their election manifesto .

The issues of co governance and ethnicity are difficult but achievable because NZ is the winner .
It may be that Coalition supporters have to apply to the High Court for Declarations of Inconsistency to enable difficult issues to then be tabled in Parliament and follow through the Select Committee process and a decision in Parliament .
If it is possible for the PM to extend his stay indefinitely at the NATO summit , NZ would be better off with the Coalition ready and able to GOVERN.
NZ expected better than corporate ideology.

Anonymous said...

Kiwialan - your description of Luxon is spot on - I throughly endorse your comments.

Anonymous said...

Luxon - high speed programmed platitudes - incomprehensible babble.

Anonymous said...

I agree with the comments.

Question - who is going to lead NZ out of its quagmire and when and how?

The more embedded the mess becomes the more accepted and normalised it becomes.

Why have Peters and Seymour gone quiet? Do they still even exist?

In my humble opinion there is a good chance Luxon may continue for a long time - the facade of a nice, sensible controlled approach to matters NZ all of which disguises the rot and disintegration.

Anonymous said...

'create a level playing field and opportunity for all'

Hear, hear.
That's exactly what National should be doing. Not implementing policy for corporates.

Anonymous said...

The old problem of Labour leaving a big mess, the Nats just tidying around the edges is now so traditional that few expect anything else. Just look at the latest polls. It is obvious that Luxon is not a leader and never will be. Maybe we will see a major switch of votes away from National and into some of the smaller, more vigorous parties next election. Not that that will stop our rapid slide into irrelevancy. Hang on to your hat!

Anonymous said...

Commenting as Auckland small busines owner (F):
I find Chris Luxon's leadership lacking and frankly cringe-worthy, especially with his TikTok appearances and the empty promises. While mentioning Estonia and other nations showed some potential vision, it's not enough. New Zealand has greater capabilities, but we need a prime minister who can level the playing field. Otherwise, it's good night nurse before the next election. I'm leaning towards voting for Act, hoping for leaders who aren't complacent and actually have a vision."

robert Arthur said...

He seems quite adept at disposing of or sidelining maori managers of major corporations and departments so has some notable merit. I am longing for him to start on RNZ then I might be able to enjoy it all the time, as of old.

Anonymous said...

1st Year Performance Review - KPIs, all facets of Management by Objectives (MBO).. Deming and Scholtes were absolutely right, MBO is actually the abdication of leadership - thought say that to any HR person and they would want you burnt at the stake. That said

Robert says: "Luxon has already boycotted ACT's David Seymour's proposed legislation that we should be equal under the law. Rule changes on such matters are not territory Luxon likes to enter."

To repeat of a previous comment made on this subject:
"... where is Luxon? Well, currently he is "Mr Nothing to see here" on any of this kind of subject, the indoctrination, cogovernance and the bleeding of the Country dry via the claimants' gravy trains. The true measure of the man, his party and the getting of things "back on track" will not be the handling of the economy, rather it will be how they handle these issues. Should they fail us in this regard then the economy will eventually head back down the proverbial toilet along with the future of NZ and all its people bar the select few who will continue bleeding it dry. He and we are very fortunate to have his coalition partners working on our behalf as without them present, Luxon would have absolutely no chance of pulling off the miracles that are sorely needed."

Fashion that little lot into a KPI/associated objectives and let us review Luxon against that in a few month's time