Transcript Title of Project or Presentation - Win

Contemporary Issues for Organisational
Survival
CPA Public Sector Accountants Group (Vic)
Presented by Wendy Lundgaard, Director
February 2007
Overview
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Global trends
Success Differentiators
Contextual issues for Public Sector
Contemporary Workforce issues
Predications and Probabilities.
Globally, what some of the best are
doing:
1. They are focusing on single industries, not
diversifying
2. They are positioning as a major, niche or ultraniche for dominance (→ master of own destiny)
3. They are pursuing unique intellectual property
(directly or as a franchisee) or monopoly/oligopoly
licenses (banking, media, gaming)
4. They are outsourcing non-core activities and
functions.
5. They are jettisoning passive (“hard”) assets,
which only provide “rental” returns.
(Phil Ruthven, 2004)
continued
6. They are creating virtual corporations &
strategic alliances
7. They are planning from the outside-in not the
inside-out
8. They are emulating world best practice for their
industry and, where possible, aggressively
globalising their businesses.
9. They are developing unique organisational
cultures.
10. They are leading first and managing second.
(Phil Ruthven, 2004)
Key Themes
• IP (workforce capability + knowledge)
• Unique cultures (effective leadership &
behaviours)
• Outside-In planning (fusion of market
intelligence and customer needs)
• Best practice (goals + performance)
• Leading first (ideas + innovation).
Success Differentiator
• Not Assets
• Not Brand
• Not Reputation
• Change
responsiveness
• Innovation
• Capability
• Productivity
• Quality of
deliverables.
Success differentiator
Success differentiator is largely driven
by the ’people’ factor.
Contextual issues for Public Sector
• Stakeholder expectations changing
• Altered funding models
• Mums and Dads as indirect
shareholders
• People issues: talent, attraction,
retention.
Stakeholder Expectations
• Balancing increased expectations with finite
resourcing
• A J Citizen has ‘crisis of confidence’ in
authority (ie church, state/govt, politicians,
authority figures)
• Better informed about rights via increased
education
• Older, more experienced general public, alert
to ‘spin’.
Altered funding models: infrastructure
• Est. $900B required in next 20yrs to retain
high growth economy
• Political pressure to deliver projects within
election cycles, surplus budgets
• Superannuation funds at $1Trillion (2006),
Infrastructure: attractive & stable asset class
• Public Private Partnerships (PPP’s) to
increase = on time, to budget
• Infrastructure current focus. Future?
(P Ruthven Nov 2006)
Change brings challenges
• Macro issues:
– Global skills shortage
– Ageing pop, health, male partic↓2.4% per decade
– Strong growth expected to continue (China etc)
– Pressure on infrastructure and services.
• Micro issues: (at organisation level)
– No room for complacency, no ‘silver bullet’
– Exposes leadership & strategy deficiencies
– Adaptability and change responsiveness
– Scenario planning & effective Workforce Planning.
Survival Essentials: Workforce Planning
Align STRATEGY
With business plan, strategy & goals
Assess skills DEMAND
Current & future demand for
resources/ capabilities/locations
Assess current SUPPLY
INT: Turnover, age profile, talent
EXT: labour market trends
Identify GAPS
Close Gaps, IMPLEMENT
REVIEW
Prioritise Shortfalls
Implement HR Strategy (Attract,
Retain, Develop). Implement
Establish performance
indicators, metrics (S.Melbourne,HR
Monthly Oct 06)
Workforce Planning: HR Strategy
Employee
Engagement
Age
Management
Alignment
(Retirement)
Growing
Capability
HR
Strategy
Attraction &
Retention
Performance
&
Productivity
Workplace
Flexibility &
Wellbeing
HR Strategy: Employee Engagement
• Typical profile:
– Engaged (30%),
– the Not Engaged (54%) and
– the Actively Disengaged (16%)
• Engaged ‘self directed’ - responsible &
accountable
• Rest ‘other directed’ - compliant or rebellious
• Can no longer afford to sift & sack
• Rehabilitation: manager effort and care of
individual: focus on employee needs of respect,
trust, confidence. (K. Ayers, 2006)
HR Strategy: Employee Alignment
• Beyond commitment and engagement
• Knowing what to do, how to do it, how it
‘fits’ with organisations. goals, & feel
supported by manager
• Effort and performance of ALL parts are
united mission / goals
• Externally marketed messages reflect
the reality for employees
• Strong Alignment before ‘change’.
(J.Garriock, Aust. Financial Review Feb 2007)
Performance & Productivity
• How clear are employees on the strategy /
mission?
• Are employees goals clearly linked to business
objectives? Are rewards appropriately valued?
• How is productivity measured? Ratio’s, metrics,
value for $’s
HR Strategy: Workplace Flexibility
Fertility Rates within Australia 1921 to 2051
3.6
Fertility Rates
3.3
3
2.7
2.4
2.1
1.8
1.5
Years
Years
Years
Years
Years
Years
Years
Years
1921-25 1932-34 1946-48 1953-55 1960-62 1970-72 1980-82 1990-92
Year
1998
Year
2005
Year
2006-51
Years (from 2006 - 51 are projections only)
ABS: Births - 3301.0 - 1998
Issues: Increasing workforce participation through
creative & flexible forms of working.
HR Strategy: Age Management
Expectation of Life from Birth (Years)
Expectation of Life from Birth
1920 to 2051
90
85
80
75
70
65
60
55
Years
Years
Years
Years
Years
Years
Years
Years
1920-22 1932-34 1946-48 1953-55 1960-62 1970-72 1980-82 1990-92
Year
1998
Year
2005
Year
2041
Year
2051
Years (2005 and beyond are projections only)
ABS: Deaths - 3302.0 - 1920-98
Females
Males
Issues: mature age worker health & productivity,
retirement transitions, quality part-time, mentors.
HR Strategy: Attraction & Retention
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Sellers Market- Long term global skills shortage
Unemployment at 4.8% (Full Emplyt @ 5%)
No growth capacity within unemployment sector
Aust & NZ Recruitment industry = $16B pa
Solutions: Retain current, 55+y.o. and mothers
Other Solutions: skills migration, internal
promotion ( = > development), use of temps &
contractors
HR Strategy: Growing Capability
• “Empires of the Future will be
Empires of the Mind” (Churchill,1943)
• Battle for brainpower - people
+ their skills
• Secondments and overseas
assignments
• Project ownership
• Coaching, mentoring →promotion.
People As Asset or Overhead?
Assets?
Investment?
• Deliverables
• Responsiveness
• Clients
• Employee engagement
•Skills
• Culture, Values and
Workplace Practices
• Retention
• Competitive advantage
• Managers ability
• Knowledge, capability &
committment
• Relationships at Work
Overhead?
Liability?
• Program costs
• Risks
•Overtime
• Absenteeism
•Turnover
• Replacement costs
• OH&S – phys & psych
• Discrimination
• Presenteeism
• Conflict at work
• IR/ER Reputation
Survival depends on integrated strategy
Employee
Engagement
Age
Management
Alignment
(Retirement)
Growing
Capability
HR
Strategy
Attraction &
Retention
Performance
&
Productivity
Workplace
Flexibility &
Wellbeing
For more visit: win-winws.com.au
Presenter: Wendy Lundgaard, Director
February 2007