Turning a Profit

When it comes to innovative government management, New Zealand has led the way. Now American reinventors are trying to learn from the Kiwi example.

Before New Zealand's weather forecasting agency was turned into a state-owned enterprise, it had overspent its budget by $2 million. The organization made a profit for the first time last year, and thanks to the profit-sharing plan, each employee took home $3,000.

Before After
Profits -$2 million $400,000
Number of
employees
360 160
Individual
employment
contracts
0 60% of employees
Pay Automatic
cost of living
Performance pay,
profit sharing
Forecast contracts
with newspapers
0 75% of the
market