Creating a new organisation is not the finish line; it’s the foundation on which long-term success depends, writes Jaron Shaw, Establishment Programme Director for Waikato Waters.
The establishment of New Zealand’s newest water organisations provides valuable insights for local government leaders navigating water reform.
On 1 July, Waikato Waters took responsibility for delivering water and wastewater services on behalf of the South Waikato, Waitomo and Waipā district councils. Matamata-Piako will join on 1 October, followed by Hauraki and Ōtorohanga in July next year.
While every transition is unique, establishing Waikato Waters highlights several lessons for councils and future water service organisations across the country.
Alignment doesn’t happen by accident
At first glance, the Waikato grouping appears ideal for a smooth transition. The councils are geographically connected, of similar scale and face many of the same challenges and opportunities. But alignment must be deliberately created and actively maintained.
Long before formal set-up activities began, our councils invested significant time exploring options, understanding the benefits of a regional approach and building confidence in a shared future. That early phase rarely receives attention once programmes are underway, yet it’s often the most important.
Once a commitment’s been made, maintaining alignment is an ongoing task. Each council has its own priorities, planning cycles, financial pressures and community expectations. Keeping a regional perspective requires discipline, communication and governance.
Waikato Waters held fortnightly meetings with all six council chief executives, fortnightly meetings with council transition leads and quarterly meetings with our Shareholder Representative Forum. This ensured issues were raised early and resolved quickly.
The blueprint already exists
One advantage for organisations embarking on water reform today is that much of the establishment architecture is already developed. Guidance from central government and the experience of early adopters means governance models, workstream structures and transfer processes are increasingly mature.
The Ministry for Cities, Environment, Regions and Transport has produced useful guidance, and new water entities are generally willing to share their experiences. No one’s competing – everyone benefits from smoother transitions across the sector.
Design for the organisation you want to become
A key principle for Waikato Waters was designing for the long‑term operating model, not just for day one. This shaped decisions about enterprise systems, business processes and organisational design.
Rather than implementing temporary arrangements that would later require replacement – at significant cost and disruption – we focused on building foundations capable of supporting future growth.
Our asset management system is a good example. We could have selected one council’s existing register and migrated the others. Instead, we invested in a modern, integrated system that will allow us to standardise asset data, improve lifecycle planning and reduce manual processes. Over time, this will enable more accurate renewals forecasting, better capital planning and more efficient maintenance scheduling.
Not everything needs to move on day one
One of the most effective strategies was phasing the transition. Instead of transferring all six councils at once, we began with three in July, followed by a fourth in October and the final two next year. This spreads the workload and reduces pressure on staff, systems and governance.
We also decided not to transfer every function to the new organisation simultaneously. Essential systems such as finance, payroll and compliance were prioritised for day one. Billing and most customer interactions, however, remain with councils for the first year under formal service level agreements.
This gives us time to design and implement our own billing system. Having inherited six pricing regimes and six different billing cycles, it’s complex. The extra time ensures we get it right.
Get the right people and get them early
Two areas were critical: financial independence and workforce transition. Having experienced leaders in finance and people and capability on board from the outset is essential.
Early financial capability enables a new organisation to establish funding arrangements, financial controls and long-term investment planning. Workforce transition is equally important. Investing time in early engagement with councils, developing the organisational structure, and establishing clear staff transition processes reduces programme risk.
Experienced employment relations and change specialists are invaluable. At Waikato Waters, every staff member transitioning from one of our councils was given a change partner to support them through the process.
After transition, we soon realised we needed to bolster training. Many staff were familiarising themselves with new devices and systems, some having used paper‑based processes until that point. On‑site training sessions were crucial in the first few weeks.
Measure readiness by capability, not milestones
A simple question told us if we were ready: Can the organisation perform its essential functions safely, legally and effectively from day one?
Rather than viewing readiness as the completion of 150‑plus deliverables, we tested how they combined to create end‑to‑end capability. For example, the ability to pay staff accurately or manage health and safety effectively.
For boards and executives, a capability‑based approach provides a clearer picture of readiness and risk.
Seek clarity on what you’re inheriting
A newly-established water organisation inherits responsibility for a significant portfolio of assets, regulatory obligations and operational risks.
Independent risk assessments gave our Board a clear picture of compliance, asset condition and health and safety risks. This builds confidence that decisions are based on the best available information and helps identify gaps early enough to address them.
Expect data quality challenges
There’s one lesson across nearly every workstream; assume data will require more attention than expected.
Asset information, customer records, contracts and operational datasets often need verification and remediation before they can be confidently transferred to new systems.
Start earlier than you think you need to and accept data gaps and quality issues will need attention beyond transition.
Plan for life after establishment
The strongest reflection from the Waikato Waters experience is establishment planning doesn’t end at transfer. The transfer date is an important milestone, but it’s only the beginning of the organisation’s operational journey. Procurement, council onboarding, system implementation and project delivery continue well beyond the start.
Future programmes may benefit from treating the first year of operation as part of establishment itself, rather than a separate phase.
For water reform across this country, that may be one of the most important lessons: creating a new organisation is not the finish line. It is the foundation on which long-term success depends.