Principle 3: Organisational structure

The organisation’s structure serves its operations

The quality of an organisation's governance will depend to a large part on whether its organisational structure is suitable for what the organisation was set up to do. It should reflect the organisation's main operational objectives and do so in a coherent way while at the same time being flexible enough to respond to changes in the organisation's strategy or mission. 

Operational element Requirements to achieve organisational performance and accountability Additional resources
3.1  Policies ensure that the organisation’s structure serves its key strategic goals and outcomes Public Sector Management Act 1994 (sections 7(b) to (f), 8 and 29(1)(c) to (f) )  
3.2  Processes exist to manage structural change and the relationships between business units  Public Sector Management Act 1994 (section 36)  
3.3  Performance measures identify how well the structure delivers against strategic plans

Financial Management Act (Part 3, Division 4 and 5)


Treasury Instruction 902: Statement of compliance


Treasury Instruction 904: Key performance indicators


CEO Performance Agreements


Public Sector Management Act 1994 (section 31)


Financial Management Act (Part 5, Division 2)


Public Sector Commissioner's Circular: 2018-01 Annual Reporting

Annual reporting guidelines



Page last updated 11 June 2018