2002 Business Cases

InternetNZ 2002-03 Business Cases

Status: Submitted to Council June 14 2002 [Referred to Chairs for further discussion, Section 6 - ICoP Task Force established, Council Meeting August 30, 2002]

Version 1.2

Author: Sue Leader

[Note: the hourly rate allocations in all sections are notional, and the hours volunteered by the Officers in Section 1 are token estimates only. E.D.]

Table of Contents

Introduction	p. 2
1. Management of InternetNZ & Supporting Membership Participation	p. 3
2. Management of .nz	p. 14
3. Supporting International Participation	p. 22
4. Supporting Internet Community Information and Issues Management	p. 29
5. Representation to Government	p. 35
6. Supporting Industry Self-Regulation	p. 42
7. Supporting Internet Groups & Projects	p. 48

Business Cases - Introductory Notes

Purpose

This document has been prepared to assist Council with its approval of the Society's involvement in a range of activities. It sets out

• the business rationale for each activity
• the deliverables and benefits to members, the stakeholder community and the Society's operations
• the direct expenditure - the required budgetary commitment, and
• the indirect expenditure - the commitment required from the Society's Council, Committees and permanent staff resources expressed as a notional cost.

 Background

While the activity descriptions do embrace 'new' systematically-developed strategic initiatives, for the most part they comprise

• 'business as usual'
• responses to organisational re-structuring
• quality or performance improvement initiatives
• responses to externally-generated demand or opportunity.

The Business Cases contain all these elements, and should therefore be viewed as baseline documents which capture our major activities as we enter the 2003 financial year, and provide the information needed for informed discussion of organisational, operational performance, resource and budgetary issue

Notes on Presentation

The Society is not primarily focused on economic return - the Return on Investment.

As an Incorporated Society our focus is on establishing to the NZ Internet community that the revenues we receive - and the Society's resources - are being systematically and efficiently deployed to achieve outcomes which have been identified and validated by the community.

The business cases have been constructed using a template from the Project Control Guidelines. Each business case starts with a brief Executive Summary, setting out what is being delivered, the key benefits and the direct and indirect expenditure. This is followed by a more detailed review of strategic and operational issues, addressing alignment with the Society's Aims and Objectives, resourcing plans and risks.

The resourcing plans capture the time commitments of the Society's Council, Committees and permanent staff resources. By providing a notional cost for these commitments we can better dimension the scale of overall resource allocation to an activity, and make comparisons between the activities that make up our work portfolio.

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1. Management of InternetNZ and Supporting Membership Participation

Executive Summary

Proposal

This proposal covers the activities associated with InternetNZ's strategic and operational functions. This area of operations is integral to cost effective and professional management of InternetNZ, and underpins all areas of the Society's work.

Background

This is a core requirement for InternetNZ. This function encompasses Membership Participation, and the Governance and Operational activities of the Society through the Council and Office of InternetNZ. This work is resourced primarily by one full-time contractor (the Executive Director), with one full-time employee (the Administration Manager) and one part-time contractor (the Technical Manager), and the President and Administration Committee of InternetNZ.

The activities provide the transparency and reporting required for members to be assured that InternetNZ:

• Meets its obligations as an Incorporated Society
• Operates within its Constitution and By-Laws
• Maintains appropriate governance mechanisms
• Works to effective and professional financial management standards
• Maintains good information flows in an open and transparent manner
• Assures membership participation in all activities, discussions, and policy development
• Offers unbiased and accurate information in response to member and stakeholder inquiries
• Maintains a high and increasingly positive public profile

N.B. Other management activities normally reported in this Area are now split out into Areas 2-7.

Expenditure

Direct Expenditure $284,870

Indirect Expenditure $33,671.50

Summary of Approval Requests

Deliverables

A. Financial

1. Annual Business Plan
2. Annual Budget
3. Annual (Audited) Accounts
4. Regular Reports:
5. GST and PAYE
6. Prompt payment of accounts, expense claims, honoraria, etc

B. Council Support

7. Servicing of Council, Committee, Working Group etc meetings
8. Officer and Councillor Support
9. Project planning

C. Event Management

10. AGMs, SGMs, EGMs

• Other events such as Summits and Conferences now covered under the Project Area

D. Membership Services

11. Operational

• Maintain up-to-date Membership database
• Receive new membership subscriptions
• Invoice members prior to renewal date
• Answer membership inquiries

12. Democracy Services (online, offline, and/or physical)

• Consultations
• Surveys, straw polls, and votes
• Information creation for lists, website etc to support Democracy Services
• Audio and/or video recording and/or transmission of meetings

E. Communications

13. Internal:

• Email
• Mailing lists (22 at present)
• Website
• Phone and fax
• Face to face

14. External

• As for #13 (5 lists at present)
• Printed publicity material
• Media releases
• Co-ordinate with Domainz and DNC on their releases
• Interviews: print, radio, TV (on and off-line)

F. Public Profile (other than covered in specific Project Areas)

15. Public speaking
16. Attendance of industry or government meetings and consultations
17. Representation of InternetNZ on external bodies
18. Liaison with sibling Organisations
19. Attendance of Conference/Seminars/events of relevant external organisations

G. Administration

20. Oversight and management of employees and contractors
21. Day to day routine functionality (e.g., Stock Maintenance)
22. Manage hireage of Boardroom
23. PCs, servers, and network maintenance

Key Benefits

1. Reinforced and extended public profile (Brand Development and Protection)
2. Effective information flows to and between members and stakeholder groups (Stakeholder Relationship Management)
3. Maximum opportunities for members and stakeholders input into work and decisions of InternetNZ
4. Smooth and effective support of Council activities
5. Professional Financial Management of InternetNZ's income and expenditures
6. Optimised cost and budget management - InternetNZ and Domainz/Registry
7. Informed and effective decision making
8. Management of Institutional Knowledge
9. Capability-building for Project work
10. Maintenance of clear central communications point at InternetNZ's Offices.

Budget Provisions

Staff	169,000
Office Expenses	53,370
Honoraria	23,500
Council Meeting Expenses	25,000
AGM & Planning	11,500
Non-project Committee expenses	2,500
TOTAL	$284,870

Review of Strategic and Operational Issues

This activity is consistent with all of the Society's core Aims and Objectives and provides the operational capacity to achieve them.Further, this activity makes a significant contribution to Brand Development and Protection and Stakeholder Relationship Management.

Benefits

Revenue Generation

• Membership fees represent c 2.5% of current InternetNZ income, a figure which needs to increase.
• Partnership opportunities with strengthened brand (e.g., Internet2 (NZ) Capability Study and IndustryNZ - $100,000)

Revenue Protection

Membership services must be maintained and enhanced to generate membership income. The Membership is why InternetNZ exists.

Cost Reduction

Efficiencies in services and capability-building lead to more Staff or Council time availability for other Project work and/or reduce the need to pay for external contractors.

Improving Membership Services

This is a core function. By maintaining these capabilities we continue to be responsive to members' wants and needs.

Brand Strengthening and Reputation

Consistent information delivery and branding, together with accuracy of information ensure that InternetNZ is regarded as the source of expertise in relation to the Internet in New Zealand.

Stakeholder Impact

Stakeholder workload

This activity does not generate significant demands on stakeholders.

Effect on Membership Fees

This is neutral in relation to membership fees, recognising that it is timely to review membership fee levels in the light of the restructuring activities in relation to .nz

Alternatives

Do nothing/Abandon this area of activity

This is not a realistic alternative. It would mean abandoning a core responsibility of the Society.

Status Quo

This is chiefly a status quo proposal. The improvements in operational and management processes and reporting are quality improvements rather than significant new initiatives.

Alternative Options

No alternatives have been identified.

Implementation and Resourcing Plans

Key Tasks	Resourcing
A. Financial
1. Annual Business Plan	Executive Director Council and Committee
2. Annual Budget	Executive Director Council and Committee
3. Annual (Audited) Accounts	Executive Director Office Staff Treasurer
4. Regular Reports: Monthly Income and Expenditure and Profit and Loss Cashflow as needed	Executive Director Office Staff Treasurer
5. GST and PAYE	Executive Director Office Staff
6. Prompt payment of accounts, expense claims, honoraria, etc	Executive Director Office Staff
B. Council Support
7. Servicing of Council, Committee, Working Group etc meetings
Notices, Agendas	Executive Director President Secretary
Travel and accommodation arrangements	Executive Director Office Staff
Receive reports and post out to Councillors	Executive Director Office Staff
Convert reports and upload to website	Executive Director Office Staff
Room preparation and food	Office Staff
Audio record meeting	Office Staff
Meeting Minutes	Executive Director Office Staff
Follow-up Action items	Executive Director
8. Officer and Councillor Support
Administration support, e.g. editing, printing, mailouts, travel	Executive Director Office Staff
Research and information gathering	Executive Director
Feedback and analysis	Executive Director
9. Project planning:
Business case	Executive Director Council and Committee
Budget	Executive Director Council and Committee
Evaluation	Executive Director Council and Committee
C. Event Management
10. AGMs, SGMs, EGMs
As for #7	See #7
Online and offline voting mechanisms	Executive Director Council and Committee Office Staff
Online participation by members	Council and Committee Executive Director Office Staff
Other events such as Summits and Conferences now covered under the Project Area	See each area
D. Membership Services
11. Operational
Maintain up-to-date Membership database	Office Staff Executive Director
Receive new membership subscriptions Add to aliases and mailing lists Letter of welcome If Corporate add to webpage and mailing list	Office Staff Executive Director
Invoice members prior to renewal date	Office Staff Executive Director
Answer membership inquiries: Current - change of details etc Potential	Office Staff Executive Director
12. Democracy Services (online, offline, and/or physical)
Consultations	Council and Committee Executive Director Office Staff
Surveys, straw polls, and votes	Council and Committee Executive Director Office Staff
Information creation for lists, website etc to support Democracy Services	Executive Director
Audio and/or video recording and/or transmission of meetings	Executive Director Office Staff
E. Communications
13. Internal:
Email	Executive Director Officers Office Staff
Mailing lists (22 at present)	Executive Director Office Staff
Website	Executive Director Office Staff
Phone and fax	Executive Director Office Staff
Face to face	Executive Director Office Staff Council and Committee
14. External
As for #13 (5 lists at present)	See #13
Printed publicity material	Executive Director Office Staff
Media releases	Executive Director President Officers
Co-ordinate with Domainz and DNC on their releases	Executive Director Officers
Interviews: print, radio, TV (on and off-line)	Executive Director President
F. Public Profile (other than covered in specific Project Areas)
15. Public speaking	Executive Director Council and Committee
16. Attendance of industry or government meetings and consultations	Executive Director Council and Committee
17. Representation of InternetNZ on external bodies	Executive Director Council and Committee
18. Liaison with sibling Organisations	Executive Director
19. Attendance of Conference/Seminars/events of relevant external organisations	Executive Director Council and Committee
G. Administration
20. Oversight and management of employees and contractors	Executive Director President
21. Day to day routine functionality (e.g., Stock Maintenance)	Executive Director Office Staff
22. Manage hireage of Boardroom	Executive Director Office Staff
23. PCs, servers and network maintenance	Executive Director Office Staff

Risk Management

Member Impact Risk

There is a real risk that membership numbers will decrease if membership services are decreased because of insufficient income. There is an equal risk that membership numbers may decrease if membership fees are increased as recommended. On the other hand, an increase in line with the recommendation would bring the fee into par with similar professional Societies, which may actually enhance potential member's impression of the value of membership of InternetNZ, and hence lead to an increase in membership numbers.

Operational Risks

As InternetNZ relies heavily on 2.5 paid personnel any absence, for example, holidays, has significant impact on the functioning of the Society. Resourcing increases are becoming critical to maintain capability in this area.

Commercial and Supplier Risk. e.g. contract and contractor management

• InternetNZ currently has its contractors on short-term (Executive Director) or part-time (Technical Manager) contracts which limits forward planning and stability.
• InternetNZ has one employee (Administration Manager) with whom a good employer relationship must be maintained.

 Financial Summary

Revenue Gain

• This maintains status quo and recommends moves towards better matching cost or services with level of membership fees.

Expenditure

• Direct Expenditure
  $284,870

Indirect Expenditure

• Indirect expenditure arises from the commitment of InternetNZ resources. (Note: Council Meeting attendance times not included. Non-Officer/Staff email reading not included.)

Input	Hours	Rate	Total
Council and Committee President Secretary Treasurer Officers	425 55 11 13 456.50 ------ 960.50	$35	33617.50
Office Staff	[2486.50*]	$25	[62162.50]
Executive Director	[2280.00*]	$45	[102,600.00**]
TOTAL			$33,671.50

*Total = $164,762 which is covered in the Direct Expenditure Budget. Figures are included in this table to give indication of time and resource allocation.

** note payment is actually capped over $12500 below this figure - maximum 2080 hours are paid for.

Recommendation

• That Council approve direct expenditure of $ 284,870 and indirect expenditure of $33,671.50 on the activities associated with:

A. Financial

1. Annual Business Plan
2. Annual Budget
3. Annual (Audited) Accounts
4. Regular Reports:
5. GST and PAYE
6. Prompt payment of accounts, expense claims, honoraria, etc

B. Council Support

7. Servicing of Council, Committee, Working Group etc meetings
8. Officer and Councillor Support
9. Project planning

C. Event Management

10. AGMs, SGMs, EGMs

• Other events such as Summits and Conferences now covered under the Project Area

D. Membership Services

11. Operational

• Maintain up-to-date Membership database
• Receive new membership subscriptions
• Invoice members prior to renewal date
• Answer membership inquiries

12. Democracy Services (online, offline, and/or physical)

• Consultations
• Surveys, straw polls, and votes
• Information creation for lists, website etc to support Democracy Services
• Audio and/or video recording and/or transmission of meetings

E. Communications

13. Internal:

• Email
• Mailing lists (22 at present)
• Website
• Phone and fax
• Face to face

14. External

• As for #13 (5 lists at present)
• Printed publicity material
• Media releases
• Co-ordinate with Domainz and DNC on their releases
• Interviews: print, radio, TV (on and off-line)

F. Public Profile (other than covered in specific Project Areas)

15. Public speaking
16. Attendance of industry or government meetings and consultations
17. Representation of InternetNZ on external bodies
18. Liaison with sibling Organisations
19. Attendance of Conference/Seminars/events of relevant external organisations

G. Administration

20. Oversight and management of employees and contractors
21. Day to day routine functionality (e.g., Stock Maintenance)
22. Manage hireage of Boardroom
23. PCs, servers, and network maintenance

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2. Management of .nz

14 June 2002

After consultation with the Domain Name Commissioner (DNC), this draft section has been removed. The DNC Office, following its formal establishment on July 1 will, in conjunction with the .nz Oversight Committee, produce a detailed Business Plan. The Business Plan will be based on documents already presented to, and approved by, Council.

Sue Leader
Executive Director
InternetNZ

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 3. Supporting International Participation

 Executive Summary

Proposal

For InternetNZ to ensure that its interests are properly understood and taken into account, it is essential to participate in the international forums at which Internet strategy, governance and operational policy is developed.

The proposal covers the resourcing of:

• Consultation on international relationships (online).
• The development and maintenance of an international relations strategy.
• As part of this strategy, the development of an understanding of the potential roles that NZ local Internet community may play when interacting with and/or representing its Pacific Island neighbours.
• Attendance at key meetings in which Internet strategy, governance and operational policy is developed.
• The follow up activities arising from meetings.

 Background

The proposal has its origins in actual and proposed changes to international governance.

InternetNZ already has established relationships with its counterparts in many Pacific Island countries. We wish to consolidate and leverage these relationships, while recognising that we have resource constraints that will preclude any large-scale involvement.

Expenditure

Direct Expenditure $5000 (International Participation budget)

$88,965 (.nz budget)

Indirect Expenditure $45210

Summary of Approval Requests

Deliverables

1. Consultation with members and stakeholder community on international issues
2. A strategic plan for NZ's international relationships, with special emphasis on Pacific Island relationships
3. Membership fees for ICANN, APTLD, ccTLD, DNSO and CENTR
4. Participation in all public ICANN meetings
5. Participation in all relevant APTLD meetings
6. Recommendations for attendance at additional meetings in which Internet strategy and policy is developed
7. Reports from attendees - both verbal to Council and in electronic format
8. Ad hoc follow up activities (e.g. reports, submissions, follow-up communications, correspondence)
9. A Communications Plan covering the above deliverable

Key Benefits

1. The current independence of the .nz delegation will be maintained.
2. Compliance costs will be minimised.
3. The risk that international decisions will adversely affect New Zealand will be reduced.
4. International reputation will be enhanced.

Budget Provisions

	International Participation Budget	.nz Budget
Travel		55,000
Legal	5000	5,000
Subscription Fees
ICANN		11,965
ccTLD		6250
APTLD		5,000
CENTR		2500
DNSO		1250
Subtotal fees		26,965
International Affairs Committee		2,000
TOTAL	$5,000	$88,965

 Review of Strategic and Operational Issues

This activity is consistent with six of the Society's core Aims and Objectives :

2.1 To promote the competitive provision of Internet access, services and facilities in an open and uncaptureable environment.

2.5 To coordinate activities at a national level pertaining to good management of centralised systems and resources which facilitate the development of the Internet, including, but not limited to, the Domain Name System.

2.7 To develop and maintain formal and informal relationships with the international Internet community, including the Internet Society.

2.8 To represent the common interests of the wider New Zealand Internet community both nationally and internationally.

2.9 To promote widely and generally available access to the Internet.

2.10 To liaise with other organisations, New Zealand Government authorities, and the general public for coordination, collaboration and education in effecting the above projects.

Further, this activity makes a significant contribution to international and national Brand Development and Protection and Stakeholder Relationship Management.

Benefits

• Cost reduction
• Compliance costs will be optimised.
• Improving Membership Services
• The current independence of the .nz delegation will be maintained.
• The risk that international decisions will adversely affect New Zealand will be reduced.

Brand Strengthening and Reputation

• This activity will further the national and international reputation of the InternetNZ brand.

Stakeholder Impact

• Effect on Membership Fees
• This proposal will have no effect on membership fees

Alternatives

• Do nothing/Abandon this opportunity
• Failure to participate internationally would seriously undercut our .nz management responsibilities.

Status Quo

• This is essentially a status quo option.

Alternative Options

• No significant alternatives have been identified.

Implementation and Resourcing Plans

Key Tasks	Resourcing
Consultation with members and stakeholder community on international issues	International Affairs Committee Executive Director
Develop a strategic plan for NZ's International relationships, including roles and relationships with its Pacific Island neighbours	International Affairs Committee Executive Director
Participate in all public ICANN meetings	International Affairs Committee Executive Director Domain Name Commissioner
Participate in all relevant APTLD meetings	International Affairs Committee Executive Director
Develop recommendations for attendance at additional meetings in which Internet strategy and policy is developed	International Affairs Committee Executive Director Domain Name Commissioner
Prepare verbal and electronic reports on outcomes of meetings	International Affairs Committee Executive Director Domain Name Commissioner
Receive reports from attendees - both verbal to Council and in electronic format	Council and Committee Executive Director Domain Name Commissioner Office Staff
Ad hoc follow up activities (e.g. reports, submissions, follow-up communications, correspondence)	International Affairs Committee Executive Director Domain Name Commissioner Office Staff
Develop a Communications Plan covering the above deliverables	Executive Director

Risk Management

Financial Risk

• The threat with this proposal is indirect. It comes from InternetNZ delegates aligning .nz to policies, strategies or specific commitments which will incur non-budgeted expenditure in the current financial year, or which may result in increases in our costs in the future. This risk can be controlled through the use of strict terms of reference and delegations for representation.

Legal Risk

• Operating in an unstructured and unpredictable international environment brings a small but appreciable threat to the Society's status as an incorporated society. The Society must operate within its Constitution. Positions taken, or commitments made, on the international stage must be checked for consistency with the Society's constitution.

Communications Risk

There is a threat that stakeholders may not see the benefits of representations, or may feel disenfranchised from policy and positioning discussions. This would result in a decrease in stakeholder confidence and impact on the InternetNZ brand and reputation. This risk can be addressed by thorough consultation and the preparation of a structured communications plan whose scope extends to all the deliverables associated with this proposal.

Financial Summary

Direct Expenditure

• Covered under .nz Budget
• Membership fees for ICANN, APTLD, ccTLD, DNSO and CENTR
• Participation in all public ICANN meetings
• Participation in all relevant APTLD meetings
• Legal advice
• International Affairs Committee Budget
• TOTAL $88,965

Covered under International Participation Budget

• Legal $1,000
• Sponsorship for Pacific Island initiatives $2,000
• Travel subsidies for Pacific Island peers to visit
• NZ/ICANN/APTLD as appropriate $2,000
• TOTAL $5,000

Indirect Expenditure

• Indirect expenditure arises from the commitment of InternetNZ resources. (Note: assumes 3.5 ICANN meetings/year and that Domain Name Commissioner attends one of them).

Input	Hours	Rate	Total
Council and Committee International Affairs Committee Chair	50 364 ------ 414	$35	$14,490
Office Staff	166	$25	$4,150
Domain Name Commissioner	127	$65	$8,255
Executive Director	407	$45	$18,315
TOTAL			$45,210

 Recommendation

That Council approve direct expenditure of $5,000 (International Participation budget), $88,965 (.nz budget) and indirect expenditure of $45,210 (of which $8,255 is indirect .nz management) on the activities associated with

1. Consultation with members and stakeholder community on international issues
2. A strategic plan for NZ's international relationships
3. Membership fees for ICANN, APTLD, ccTLD, DNSO and CENTR
4. Participation in all public ICANN meetings
5. Participation in all relevant APTLD meetings
6. Recommendations for attendance at additional meetings in which Internet strategy and policy is developed
7. Reports from attendees - both verbal to Council and in electronic format
8. Ad hoc follow up activities (e.g. reports, submissions, follow-up communications, correspondence)
9. A Communications Plan covering the above deliverables

4. Supporting Internet Community Information and Issues Management

N.B. This area was called 'Education' in previous planning documents. It has been re-titled to better reflect the nature of the activities undertaken. It includes the information areas of Area 7 "Anti-Spam Activities" and Area 11 "Digital Divide" as determined at the Planning Day.

Executive Summary

Proposal

This proposal covers the activities associated with InternetNZ undertaking three closely related roles -

1. A 'clearing house' - receiving and processing requests from individuals and organisations for information about the Internet in NZ.
2. Advice and advocacy for individuals and organisations who have Internet-related problems.
3. Issues management - where InternetNZ has identified Internet-related societal and educational issues affecting its members and stakeholders, and which must be addressed by the Society owning and managing an intervention with government agencies, the Internet industry, the media and/or other groups.

Background

The activities associated with these roles are consistent with those undertaken by similar not-for-profit organisations.

The clearing house role generates significant work volumes. It has been undertaken by the office in an ad hoc manner. This consumes staff time which could be used on more value-adding activity.

Advice, advocacy and issues management activities have been characterised by individuals and groups making direct contact with individual members of the Society's office staff, committees and Council - and relying on these individuals for the tasks of communication, coordination and synthesis. This is an inefficient process.

There is consensus that these roles could be undertaken more efficiently - and with a greater stakeholder value-add - through a portal-based approach.

Expenditure

• Direct Expenditure $10,000
• Indirect Expenditure $9,780

Summary of Approval Requests

Deliverables

1. A portal website for information on the Internet in New Zealand, providing an overview of the history, organisation, growth indicators, list of ISPs, contact information, etc.
2. A portal-based "hotline" area for complaints about service, consumer protection, objectionable material, abuse, etc.
3. A portal-based repository of standard documentation - forms, contracts, Codes of Practice, AUPs, etc relating to Internet use or security.
4. General information clearing house, advisory, advocacy and issues management activities consistent with InternetNZ's role as an Incorporated Society.

Key Benefits

1. A 'One Stop Shop' for anyone interested in information about the Internet in NZ.
2. A resource that can be used by providers in the primary, secondary and tertiary education sectors.
3. A 'One Stop Shop' for links to organisations which deal with problems experienced in relation to the Internet.
4. Strengthening of the InternetNZ brand and reputation
5. Supports more efficient use of staff, Committee and Council resources.

Budget Provisions

• Website development $10,000

Review of Strategic and Operational Issues

• This activity is consistent with all of the Society's core Aims and Objectives.

Benefits

Revenue Protection

• This is a value-adding activity which has the potential to make a contribution to retaining members and attracting new membership.

Cost Reduction

• While not reducing costs directly, the channelling of activity through a portal will contribute to a more efficient use of staff resources.

Improving Membership Services

• The functionality offered by the portal-based services (e.g. availability of information, standard documentation and forms) extends the range of services offered to members.

Brand Strengthening and Reputation

• This activity makes a significant contribution to Brand Development and Protection and Stakeholder Relationship Management.

Stakeholder Impact

• Stakeholder workload
• This activity does not generate significant demands on stakeholders.

Effect on Membership Fees

• This activity will not result in an increase in Membership Fees

Alternatives

• Do nothing/Abandon this area of activity
  This is not an acceptable alternative because this area of activity is closely aligned with the Society's Aims and Objectives.
• Status Quo
  This is an alternative. The inefficient use of staff, Committee and Council time in this activity area would continue.

Alternative Options

• The portal approach could be substituted by lower-level functionality (eg. A designated email for a specific task, e.g. Complaints@ . This approach, coupled with internal process improvements may partially overcome the inefficient use of time.

Implementation and Resourcing Plans

Key Tasks	Resourcing
Develop design brief for portal	Council and Committees Executive Director Office Staff Third Party Contractors and Consultants
Develop Operational Support Plan for Portal	Executive Director
Develop budget for portal development and operation	Executive Director
Secure approval for portal strategy and budget	Council and Committees Executive Director
Build portal	Third Party Contractors and Consultants Executive Director Office Staff
Launch portal	Council and Committee Executive Director
Revision of job roles, processes to support information clearing house, advisory, advocacy and issues management activities	Executive Director Office Staff
General information clearing house, advisory, advocacy and issues management activities consistent with InternetNZ's role as an Incorporated Society.	Executive Director Office Staff

 Risk Management

Member Impact Risk

• Information and issues management is a value-adding activity, and is likely to have a positive impact on member confidence and membership levels.
• For continued support, members must perceive that this activity represents a good use of Society funds - that they would not be better used elsewhere.
• This creates the requirement to achieve alignment between the volumes of the transactions undertaken, satisfaction rates and operational support costs. The design brief, operational support plan and budget must be optimised to ensure this outcome.

Operational Risks

• To maintain its usefulness and reputation the portal will require frequent updates of content and links to maintain its currency and usefulness. The trade-offs between user satisfaction, content scope, frequency of updates and operational support costs must be fully understood, and thoroughly documented in the operations support plan.
• There is a measure of general operational risk if the workload from ad hoc general information clearing house, advisory, advocacy and issues management activities is not managed efficiently - with the result that scheduled, higher priority work is compromised.
• The boundaries - and links - between the portal and the Domainz and/or Registry call centres need to be clearly established in the design brief.

Commercial and Supplier Risk. E.g. contract and contractor management

• A measure of risk is associated with any contracting out of design and development work. This is managed through effective contracts focusing on deliverables and quality requirements.

Financial Summary

Revenue Gain

• No revenue gain is anticipated in the short-term, though partnership projects with other information providers may be possible once site is live.

Expenditure

• Direct Expenditure
  Website development - external third party contractors $2800 of the $10,000
• Indirect Expenditure
  Indirect expenditure arises from the commitment of InternetNZ resources.

Input	Hours	Rate	Total
Council and Committee	26	$35	$910
Office Staff	182 (at least 40 hours will be over budget and therefore be internal contractor rates)	$25	$4,550
Executive Director	96	$45	$4,320
TOTAL			$9,780

Recommendation

That Council approve direct expenditure of $2,800 and indirect expenditure of $9,780 on the activities associated with the development and maintenance of:

1. A portal website for information on the Internet in New Zealand, providing an overview of the history, organisation, growth indicators, list of ISPs, contact information, etc.
2. A portal-based "hotline" area for complaints about service, consumer protection, objectionable material, abuse, etc.
3. A portal-based repository of standard documentation - forms, contracts, Codes of Practice, AUPs, etc - relating to Internet use or security.
4. General information clearing house, advisory, advocacy and issues management activities consistent with InternetNZ's role as an Incorporated Society.

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5. Representation to Government

Executive Summary

Proposal

This proposal covers a range of activities and deliverables associated with InternetNZ representing Internet users and providers to the Government.

Background

InternetNZ is recognised by the Government as both an 'industry body' and a body representing the interests of Internet users.

We have a 'Thought Leadership' position which we must maintain. Through building effective liaison with the Government and policy makers we have opportunities to achieve a favourable regulatory environment for the industry, and to ensure that the interests of the user community are properly considered as legislation is developed.

Our representation and lobbying is proactive in nature. We cover issues as they emerge - before they have received extensive media coverage. This is a 'business as usual' activity, which is a key part of our value proposition to stakeholders. With the advent of e-Government, a significant number of consumer issues in the spotlight and a developing e-Economy we anticipate continued growth in our workload.

Expenditure

• Direct Expenditure $17,500 (Representation to Govt budget)
• $5,000 (.nz budget)
• Indirect Expenditure $23,950

Summary of Approval Requests

Deliverables

To develop and maintain capabilities, processes, web site enhancements and systems which allow InternetNZ to proactively:

1. Monitor and analyse bills and regulations
2. Consult Society members and the stakeholder community on emerging issues
3. Liaise with other industry bodies, professional organisations and consumer groups to develop awareness of respective positions
4. Develop tactical plans in conjunction with other organisations where relevant
5. Develop briefing and position papers for members and stakeholders
6. Make submissions to select committees
7. Make representations to Ministers
8. Build up relationships with key Parliamentary spokespersons
9. Provide an alert service to members, the Internet industry and users on key issues
10. Collate input for submissions
11. Co-ordinate campaigns as appropriate
12. Foster relationships with key technology and political media.

Key Benefits

1. Timely, fit-for purpose legislation and regulations for the Internet industry and consumers.
2. Strengthening of the InternetNZ brand and reputation.
3. Efficient coordination of responses

 Budget Provisions

	Representation to Government budget	.nz budget
Legal advice fees	2,000	5,000
Legal & Regulatory Committee: Work agenda Meetings Total	8,000 2,000 --------- 10,000
Advertising/promotion	2,500
Political Liaison Working Group: Meetings Product (manual) Total	1,000 2,000 -------- 3,000
TOTAL	$17,500	$5000

 Review of Strategic and Operational Issues

This activity is consistent with four of the Society's core Aims and Objectives :

2.1 To promote the competitive provision of Internet access, services and facilities in an open and uncaptureable environment

2.8 To represent the common interests of the wider New Zealand Internet community both nationally and internationally.

2.9 To promote widely and generally available access to the Internet

2.10 To liaise with other organisations, New Zealand Government authorities, and the general public for coordination, collaboration and education in effecting the above projects.

Benefits

• This activity contributes to InternetNZ's Brand Development and Protection and Stakeholder Relationship Management. It represents a significant part of our value proposition to members.

Stakeholder Impact

• This activity will not result in an increase in Membership Fees

Alternatives

• Do nothing/Abandon this opportunity
  Doing nothing is not an option - this would result in the Society not meeting its Aims and Objectives. In addition the Society would throw away established credibility, undercutting future relationships and Brand Development and Protection.
• Status Quo
  This is essentially a status quo proposal, but building a more systematic and professional approach.
• Alternative Options
  No alternative options have been identified.

Implementation and Resourcing Plans

Key Tasks	Resourcing
Monitor and analyse bills and regulations	Legal and Regulatory Affairs Committee Executive Director
Consult Society members and the stakeholder community on emerging issues	Council and Committee Executive Director Third Party Contractors and Consultants
Liaise with other industry bodies, professional organisations and consumer groups to develop awareness of positions	Council and Committee Executive Director Third Party Contractors and Consultants
Develop tactical plans in conjunction with other organisations as relevant	Council and Committee Executive Director
Develop briefing and position papers for members and stakeholders	Council and Committee Executive Director Office Staff
Make submissions to select committees	Council and Committee Executive Director
Make representations to Ministers	Council and Committee Executive Director
Build up relationships with key Parliamentary spokespersons	Executive Director
Provide an alert service to members, the Internet industry and users on key issues	Office Staff Executive Director
Collate input for submissions	Council and Committee Executive Director Third Party Contractors and Consultants
Co-ordinate campaigns as appropriate	Office Staff Executive Director
Foster relationships with key technology and political media.	Executive Director
Develop Stakeholder Communications Plan	Executive Director

Risk Management

• Member Impact Risk
  This activity has a small, but significant threat from the alignment of InternetNZ public position with the position of industry stakeholders and members.
  We could lose support from some members and/or membership if our perceived political stance is not consistent with their values and beliefs. Some members may see alignment and coordination with other interest groups as compromising their independence or weakening the value provided by the Society. This risk is mitigated by an effective communications plan.
  There is also the threat that poorly managed activities in this area may result in the Society losing its reputation with the Minister, Select Committees and other parliamentary/government stakeholders. In this case we will be perceived by our members as not delivering value with possible loss of support from members and/or membership. This risk is mitigated by a thorough, well-managed process.
• Legal Risk
  A threat arises if external advice may not be of a high quality. In this case there may be a number of potential impacts, chief of which is credibility of the Society and the flow-on effects that come from a damaged reputation.
• Communication Risk
  There is a significant threat of misrepresentation in lobbying activities. For example, groups or individuals consciously or accidentally claiming to represent constituencies which have not been consulted. Another example would be an individual making a representation that has not been discussed or endorsed by members.

The result of such events is a loss of member confidence in this area of the Society's work.

A well-managed process mitigates this risk.

Financial Summary

Direct Expenditure

	Representation to Government budget	.nz budget
Legal advice fees	2,000	5,000
Legal & Regulatory Committee: Work agenda Meetings Total	8,000 2,000 --------- 10,000
Advertising/promotion	2,500
Political Liaison Working Group: Meetings Product (manual) Total	1,000 2,000 -------- 3,000
TOTAL	$17,500	$5,000

 Indirect Expenditure

Indirect expenditure arises from the commitment of InternetNZ resources.

Input	Hours	Rate	Total
Legal & Regulatory Affairs Committee Political Liaison Working Group Total	238   44 -------- 282	$35	$9,870
Office Staff	70	$25	$1,750
Executive Director	274	$45	$12,330
TOTAL			$23,950

Recommendation

That Council approve direct expenditure of $22,500 (of which $5,000 is from the .nz budget) and indirect expenditure of $23,950 on developing and maintaining capabilities, processes, web site enhancements and systems which allow InternetNZ to proactively:

1. Monitor and analyse bills and regulations
2. Consult Society members and the stakeholder community on emerging issues
3. Liaise with other industry bodies, professional organisations and consumer groups to develop awareness of positions
4. Develop tactical plans in conjunction with other organisations where relevant
5. Develop briefing and position papers for members and stakeholders
6. Make submissions to select committees
7. Make representations to Ministers
8. Build up relationships with key Parliamentary spokespersons
9. Provide an alert service to members, the Internet industry and users on key issues
10. Collate input for submissions
11. Co-ordinate campaigns as appropriate
12. Foster relationships with key technology and political media.

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6. Supporting Industry Self-Regulation

N.B. This area was called "Industry Co-ordination" in previous planning documents. It has been re-titled to better reflect the nature of the activities undertaken.

Executive Summary

Proposal

This proposal covers a range of activities that the Society would coordinate to facilitate Internet industry self-regulation. These activities include:

• Undertaking industry-wide consultation in order to revise and update the Internet Code of Practice.
• Investigating the establishment of an Internet Code of Practice Complaints Board.
• Bring together relevant parties to endorse updated code and complaints board.
• Associated communications.

The proposal assumes that the Complaints Board, if endorsed, will be self-funding.

Background

An industry code of practice was first launched in 1995, revised in 1998 and subsequently re-launched.

In the last few years the Government has continued to press for widespread industry sign-up and compliance. In 2001 the Internet Industry Forum endorsed InternetNZ moving forward on this issue. The scope of the revised code needs to include spamming, privacy and intellectual property.

Expenditure

• Direct Expenditure $40,000
• Indirect Expenditure $13,000

Summary of Approval Requests

Deliverables

1. A Consultation Plan
2. A Consultation Summary
3. A Draft Revised Code of Practice for industry review and endorsement
4. A Certification Framework and associated logos and promotional material
5. The Terms of Reference for a Complaints Board, including

6. The draft budget for the Complaints Board
7. A National Summit to discuss and endorse the Code of Practice, Complaints Board and the associated administrative support
8. An Industry Advertising campaign
9. A register of industry participants in the revised Code of Practice
10. A Re-launch
11. Consumer advertising
12. A Communication Plan covering the above deliverables.

Key Benefits

1. Industry self-regulation lessens the chances of direct government intervention and/or regulation.
2. The Code of Practice provides business rules for providers to incorporate in service provision, content and screen design.
3. The Code of Practice provides a reference point and baseline standards for consumers.

Budget Provisions

• ICoP Task Force $5,000
• Revised ICoP and Summit $20,000
• Advertising and promotion $15,000
• TOTAL $40,000

Review of Strategic and Operational Issues

This activity is consistent with three of the Society's core Aims and Objectives :

3. To develop, maintain evolve and disseminate effective administrative processes for the operation of the Internet in New Zealand.

8. To represent the common interests of the wider New Zealand Internet community both nationally and internationally.

2.10 To liaise with other organisations, New Zealand Government authorities, and the general public for coordination, collaboration and education in effecting the above projects.

Benefits

• Brand Strengthening and Reputation
  The proactive and effective management of this activity by InternetNZ has the potential to make a significant contribution to Brand Development and Protection and Stakeholder Relationship Management.
• Membership and Stakeholders
  Industry self-regulation lessens the chances of direct government intervention and/or regulation.

The Code of Practice provides business rules for providers to incorporate in service provision, content and screen design.

Stakeholder Impact

• The Code of Practice provides a reference point for consumers.
• There will be no effect on Membership Fees.

Alternatives

• Do nothing/Abandon this opportunity
  This alternative is not acceptable because the Government has quite clearly signalled its expectations of the industry.
• Status Quo
  The Status Quo is not acceptable because the current code is not comprehensive, and levels of compliance and consumer awareness are not satisfactory.
• Alternative Options
  No other options have been identified. Deferment is not an acceptable option.

Implementation and Resourcing Plans

Key Tasks	Resourcing
Consultation to seek input	Council and Committee Executive Director
Draft revised code	Council and Committee Executive Director Third Party Contractors and Consultants
Develop Certification Framework and logos	Council and Committee Executive Director Third Party Contractors and Consultants
Develop Terms of Reference for Complaints Board	Council and Committee Executive Director
Establish budget for Complaints Board	Council and Committee Executive Director
Run National Summit	Office Staff Executive Director
Run Industry Advertising	Executive Director
Secure sign-up by industry	Council and Committee Executive Director
Public re-launch	Office Staff Executive Director
Run consumer advertising	Executive Director Third Party Contractors and Consultants
Develop Stakeholders Communication Plan	Executive Director

Risk Management

• Member Impact Risk
  There is a threat that some members may feel that the Society is exceeding its mandate. This may impact membership levels. This can be addressed through an effective communications plan.
• Financial Risk
  There is a small but significant threat that estimates for this initiative may not be adequate if scope creep is allowed. This would result in budget over-runs. This can be addressed by closely monitoring scope and expenditure.
• Legal Risk
  There is a range of legal actions which might arise if, in executing its coordination role for the new code of practice, the Society fails to consult and publicise diligently, with a result that a commercial entity or consumer is in some way disadvantaged, and seeks recompense. This risk must be managed through the communications plan.
• Project Risk
  Extensive consultation and communication with a wide range of stakeholders will be required to achieve the required outcomes. The resourcing of these tasks is of critical importance. The risk can be managed through use of a stakeholder communications plan which - by identifying events, target groups, messages, channels, etc. enables the identification of work volumes and the competencies required.

Financial Summary

Direct Expenditure

Task Force meetings	$3000
Revise ICoP	$400
ToR Complaints Board	$400
Certification Framework	$4,000
Logos	$1,600
PR company (2 campaigns)	$3200
Media placements (2 campaigns)	$10,000
Summit	$15,000
Complaints Board seed funding	$2,400
TOTAL	$40,000

Indirect Expenditure

Indirect expenditure arises from the commitment of InternetNZ resources.

Input	Hours	Rate	Total
Council and Committee	100	$35	$3,500
Office Staff	56	$25	$1,400
Executive Director	180	$45	$8,100
TOTAL			$13,000

Recommendation

That Council approve direct expenditure of $40,000 and indirect expenditure of $13,000 on the activities associated with -

1. A Consultation Plan
2. A Consultation Summary
3. A Draft Revised Code of Practice for industry review and endorsement
4. A Certification Framework and associated logos and promotional material
5. The Terms of Reference for a Complaints Board, including

6. The draft budget for the Complaints Board
7. A National Summit to discuss and endorse the Code of Practice, Complaints Board and the associated administrative support
8. An Industry Advertising campaign
9. A register of industry participants in the revised Code of Practice
10. A Re-launch
11. Consumer advertising
12. A Communication Plan covering the above deliverables.

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7. Supporting Internet Groups and Projects

N.B. This area is an amalgamation of the following areas from previous planning documents as determined at the Planning Day:

• Area 8 "Supporting Internet Groups and Projects"
• Area 9 "Running Internet Public Good Projects"
• Area 10 "Technology Incubator"
• Area 11 "Digital Divide" (Internet2 (NZ) Steering Group section)

Executive Summary

Proposal

This proposal is for the establishment of policies and processes to ensure that:

• the Society's involvement in, and financial contribution to, Internet research and other 'public good' initiatives meets the needs and expectations of its members, and
• the selection of projects is conducted in a manner which is consistent with good governance practice.

Background

The Society receives many requests for project funding each year. At present these are considered on a case-by-case basis.

Members and Council have indicated the need for a more systematic approach to approving, funding and monitoring research and other 'public good' projects.

Expenditure

• Direct Expenditure $39,250
• Indirect Expenditure $4,080

Summary of Approval Requests

To develop and maintain capabilities, processes, web site enhancements and systems which allow InternetNZ to:

• Undertake periodic qualitative surveys of members and stakeholders to establish research priorities and the outcomes required of research and 'public good' programmes.
• Maintain a list of research and 'public good' project priorities
• Maintain a fund to support research and 'public good' projects.
• Advertise the availability of funds, the terms of funding and invite proposals.
• Evaluate proposals.
• Assess compliance of the outputs of projects with quality requirements.
• Publicise and promote project outcomes

Key Benefits

1. Enhanced reputation for InternetNZ as a 'thought leader'
2. More efficient and defensible use of Society funds

Budget Provisions

• Social Impact Committee Meetings and Projects $15,000
• Identified additional Projects 2002-03:
  Internet2 (NZ) steering Group $5,000
  ThinkQuest $3,000
  NZ Maori Internet Society $250
  Subtotal $8250
• Advertising/promotion $2500
• TOTAL $25,750

Review of Strategic and Operational Issues

This activity is consistent with five of the Society's core Aims and Objectives :

2.1 To promote the competitive provision of Internet access, services and facilities in an open and uncaptureable environment.

2.7 To develop and maintain formal and informal relationships with the international Internet community, including the Internet Society.

2.8 To represent the common interests of the wider New Zealand Internet community both nationally and internationally.

2.9 To promote widely and generally available access to the Internet.

2.10 To liaise with other organisations, New Zealand Government authorities, and the general public for coordination, collaboration and education in effecting the above projects.

Benefits

• Cost Reduction and Cost Avoidance
  This process will promote efficient use of InternetNZ resources. It will also provide a measure of control to prevent InternetNZ funding projects that may be better aligned with the interests of other sponsors.
• Brand Strengthening and Reputation
  This activity will further the national and international reputation of the InternetNZ brand.
  InternetNZ brand will benefit from the publicity associated with research outcomes and from undertaking funding in a manner that is consistent with good practice for not-for-profit organisations. Alignment with 'public good' projects will also contribute to brand development and recognition.

Stakeholder Impact

• Stakeholder Benefits
  The Internet community will benefit from the outcomes of quality-assured, relevant research. The Internet industry will indirectly benefit from a continuous stream of 'public good' projects, which will encourage a perception that the industry is aware of its societal responsibilities.
• Effect on Membership Fees
  This proposal has no impact on membership fees.

Alternatives

• Do nothing/Abandon this opportunity
  Doing nothing is not an option - this would result in the Society not meeting its Aims and Objectives.
• Status Quo
  This is essentially a status quo proposal, but building a more systematic and professional approach which will allow Council Committees and Working Groups to attain a clearer basis for determining work focus each year.

Alternative Options

• No alternative options have been identified.

Implementation and Resourcing Plans

Key Tasks	Resourcing
Commission qualitative research to identify research and 'public good' project areas which members and stakeholders regard as high priority	Executive Director Third Party Contractors and Consultants
Establish funding cycle and the key business rules associated with the funding process	Council and Committee Executive Director
Document funding levels as part of the Society's budgeting process	Council and Committee Executive Director
Develop and maintain the terms of reference and quality expectations of Society-sponsored projects	Council and Committee Executive Director
Advertise to invite proposals	Executive Director Office Staff
Evaluate proposals	Council and Committee Executive Director
Assess compliance of the outputs of project with quality requirements	Council and Committee Executive Director
Publicise and promote project outcomes	Executive Director
Develop Stakeholders Communication Plan	Executive Director

Risk Management

• Member Impact Risk
  There is a threat that members may not see the sponsoring of research (or some areas of research) or 'public good' projects as being a legitimate or priority task of the Society. This may have a negative impact on member confidence and/or membership levels. This risk is mitigated through the use of the qualitative survey, which captures the wants and expectations of members and stakeholders.
• Financial Risk
  Funds must be made available on a permanent basis, and there needs to be a measure of assurance to the research community in particular that the scale of funding will not change. This most probably requires a fixed sum to be identified. The Society needs to identify this sum, and assess the financial risk posed by a continuous commitment to research and 'public good' projects.
• Legal Risk
  The Society needs to develop a clear understanding of its legal position as sponsor of research. There are two areas of concern which are common to all sponsors of research:
  • What the Sponsor will do in the event that research is not conducted in a professional manner
  • The position that the Sponsor will take with regard to any recommendations that may form part of the outputs or outcomes of a research project.

Financial Summary

Expenditure

Direct Expenditure

Survey	$6500
Social Impact Committee meetings	$2000
Existing identified projects	$8250
Advertising	$1250
Promotion of outcomes	$1250
Grants Funding Pool	$20,000 (of which 6,500 is already in budget)
TOTAL	$39,250

 Indirect Expenditure

Indirect expenditure arises from the commitment of InternetNZ resources.

Input	Hours	Rate	Total
Council and Social Impact Committee	76	$35	$2660
Office Staff	1	$25	$25
Executive Director	31	$45	$1395
TOTAL			$4080

Recommendation

That Council approve direct expenditure of $39,250 and indirect expenditure of $4080 to develop and maintain capabilities, processes, web site enhancements and systems which allow InternetNZ to:

• Undertake periodic qualitative surveys of members and stakeholders to establish research priorities and the outcomes required of research and 'public good' programmes
• Maintain a list of research and 'public good' project priorities
• Maintain a fund to support research and 'public good' projects
• Advertise the availability of funds, the terms of funding and invite proposals
• Evaluate proposals
• Assess compliance of the outputs of projects with quality requirements
• Publicise and promote project outcomes

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© 2001 InternetNZ
Last updated 2 September 2002