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CONTENTS
INTrOduCTION Pageno.
Introduction Insidefrontcover
Usingthisdocument 1
Examiningyourperformance 1
Regionalperformance 2
Industryperformance 2
ReadingAppendix1 3
PositioningyourGTOwithintheindustry 4
Readingthegraphs 4
Peerperformance 5
Forecastingfutureprospects 6
Regionalsummarytables 6
Regionalrankings 6
GTOGrowthandthreatstogrowth 7
Optimisationanalysis 7
Reviewingyourstrategicplan 8
SummaryissuesfromStateGTApresentations 8
Furtheradviceandinformation 9
Appendix1ExecutiveSummaryfromtheLooking Aheadreport 10
Appendix2KeyMessagesfromtheLooking Aheadreport 17
The Looking Ahead report commissioned by Group Training Australia was intended to provide a fundamental review of the group training business model after 30 years of operation and a foundation for the industry’s future strategic planning.
Thatdocumenthadmultipleaudiences.Thisguideisintendedspecificallytoassistgrouptrainingorganisationsaccessandusethedatacontainedinthereportfortheirownstrategicreviewsandforplanningpurposes.PresentationstoStateassociationshaverevealedthatmanymembersareinterestedinmakingbetteruseofthereportbutfounddifficultiesaccessingthecontent.Wehopethatthisdocumentwillmakeusingthereporteasierandtherebyassistourmemberstodevelopsoundbusinessstrategiesforthefuture.
WhilethisdocumenthasbeenpreparedforGroupTrainingAustraliabyNIEIR,itdoesnotcontainnewmaterial.Itwillpointgrouptrainingorganisationstokeyrelevantpartsofthereportandhelpthemtoseehowthedatacanbemademorerelevanttotheirorganisation.GTOswishingtoobtainadditionalinformationandarrangeanin-houseseminarfromNIEIRarefreetodosobycontactingtheconsultantsdirectly.
JamesBarronChiefExecutiveOfficerGroupTrainingAustralia
uSINg ThIS dOCumENT
Thisisa‘how-to’document.WehavetriedtoavoidrepeatingcontentalreadyprovidedinthemainLookingAheadreport.Whereverpossible,pagereferenceshavebeenincluded(aswellassection,figureandtablereferences)sothetwodocumentscanbereadtogether.Inthisdocumenttheuseoftheword‘apprentice’denotesatraditionalapprenticeasopposedtoatrainee.
GTOsareencouragedtoworkthroughthedocumentfromstarttofinishwherepossible.ItisintendedasaworkingdocumentthatgeneratesasystematicapproachtousingtheLookingAheadinformationandapracticalpathwaythroughthelargerdocument.
UsersofthisdocumentmayfindthatitjumpsaroundattimestodifferentpartsoftheLooking Aheadreport.Thisisbecausethereportwasdevelopedonadifferentbasistothisdocument.
Wherepossibleitwouldbeadvisabletousethestructureofthisdocumentasaframeworkforreviewingyourindividualstrategicplan(oratleastacomponentofthatreview).Thiswillallowuserstodeveloptheirownworkbookofsupportingdocumentation.
ExamININg yOur pErfOrmaNCE
The starting point for any assessment of where your organisation is heading is to examine where you are today and where you have been.
Tohelpyoudevelopyourownsetofperformanceindicators,thereportcontainsaproposedsetinPartE(page129).ThiscomprehensivesetofindicatorsmaybebeyondthecapabilityofmanyGTOsatpresentbutrepresentanobjectiveforsystematicreportingandbenchmarking.Theindicatorsarearrangedunderfiveheadings:
Generalmeasuresofefficiency
Measuresofcostefficiency
Measuresofstaffefficiency
Marketperformance
Measuresofeffectiveness
Thereportusedaninitialsetofindicatorsdevelopedforthe2009questionnaireofGTOs.IfyoustillhavethematerialsuppliedtoNIEIRin2009itwouldbeworthreviewingthisasitwillhelpyoupositionyourorganisationinthereport’svariousgraphsandtables.Ifyoudon’tstillhavethismaterial,thequestionnaireaskedforthefollowinginformationfor2008.
a.HowmanyFTEGTOstaff
b.Howmanyapprentices
c. Howmanytrainees
d.ApprenticesandtraineesperFTEstaff
e. Completionrates(ofthosewhostartwithyourorganisation,howmanycomplete)
f. Howmanyemployersdoyoudealwithonaregularbasis
g.Whatisyourrevenuefrom:
i. Employers
ii.Government
iii.Other
iv.Proportionoftotalforeachoftheabove
h.Whatisyourcurrentbusinessstrategy
i. Survival
ii.Geographicgrowth
iii.Industrydiversification/specialisation
iv.Growshareinexistingmarkets
v. Increasegovernmentrevenue
vi.Allofabove/other
Thisinformationshouldbeassembledbeforeyoustartworkingyourwaythroughthisguidesoyoucancheckyourrelativeperformanceagainsttherestoftheindustry.Attimestheinformationwillbeusedasratios.
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1UserGuide–LookingAhead
ExamININg yOur pErfOrmaNCE
COMPARInGyOURPERFORMAnCEAGAInSTIndUSTRyTREndS
PartAofthereportexaminestheperformanceofGTOsovertheperiod2001to2009.Ifyouknowyourownperformanceoverthisperiod,youcantrackthatagainstgraphsforallcontractedtraining,includingexistingworkers(Figure1.2,page13)andallcontractedtrainingthroughGTOs(Figure1.3,page13).Youwillnotethatforallformsofsuchtrainingtherewassteadygrowth(apartfromafallincommencementswiththeonsetoftheGlobalFinancialCrisisinlate2008)whereasforgrouptrainingthenumbershavebeenflat(withapronounceddipstartingin2008).Howdoesyourperformancecompare?
Thegrowthofpeopleinvolvedinallformsofcontractedtrainingandlackofgrowthingrouptrainingnumbersmeansthatgrouptraininglostmarketshareoverthisperiod.ThislossofmarketshareappliesequallytothemarketforapprenticesascanbeseeninFigure1.5,page14.ThereareanumberofreasonsforthisthatareanalysedinPartC,Chapter9(page84).Thisanalysisisundertakenonastatebystatebasisalthoughtheconclusions(page90)aregeneralisedforAustralia(strongemploymentgrowth,increasedapprenticeintensityandotherfactorssuchasthegrowthofcompetitorsandsubstitutes).
YoucanusethereporttolookatgrouptrainingperformanceinmarketswhereyourGTOisactive(regionsandindustries–Appendix1).
RegionalperformanceRegionsarebasedonlocalgovernmentareas(LGAs).DetailsofwhichLGAsareincludedinwhichregionsareprovidedinAppendix7(page434).TheyarereferredtoasSORRegionsastheyaretheregionsusedbyNIEIRincompilingitsStateoftheRegionsreportfortheAustralianLocalGovernmentAssociation(ALGA).InwhichState(s)andregionsdoyouhavesubstantialoperations?
ForasnapshotofGTOmarketshareinspecificSORRegionsin2008,gotoTable13.1(page117).ThisshowstheshareofallapprenticesintrainingineachoftheSORregions(shareofAustraliantotal)andtheshareofGTOapprentices(shareofAustraliantotalfromtheNIEIRGTOsurvey).ThefinalcolumninthistableshowstherelativeperformanceofGTOscomparedtotheshareofthetotal
numberofapprenticesinAustraliainthatSORregion.AnegativenumberindicatesGTOshavebelowmarketshareandapositivethattheyhaveabovemarketshare.HowareGTOsperformingintheregionswhereyouareactive?
InPartA,informationisprovidedforverybroadregions(capitalcity,provincialcitiesandrural).Table1.1(whichisalsousedasthebasisforFigure1.9)showshowGTOshaveperformedinthesebroadregions(shareofGTOcommencementsintotalcommencementsexpressedasanindexwith2001beingthebaseyear).InsomeofthesebroadregionsGTOsimprovedtheirsharebutinmanytheydidnot.HowdidGTOsperforminthebroadregionswhereyouareactive?
AtaStatelevel,alotofinformationaboutGTOperformanceisavailableinAppendix1(page148).InformationisavailableforApprentices,Other(trainees)andAlltraining;itisavailableforIn-training,CommencementsandCompletions,and;itshowsperformanceataStatelevelintermsofgrouptrainingmarketshare.Changesinmarketshareareavailableinbothabsolutenumbersandthreeyearrollingaverages.Itisalsoavailablebyindustrysector(seebelow).ThisinformationallowsyoutogainaverycomprehensiveinsightintohowtrainingisdevelopinginthestateswhereyouareactiveandhowGTOsareperforminginthosestates.
IndustryperformanceAtanationallevel,theperformanceofGTOsindifferentindustrysectorscanbeseeninFigure1.7(page16)andFigure1.8(page17).ThisshowsthatinallindustrysectorsGTOslostmarketshare.Figure1.8showsrelativeperformanceusingthreeyearrollingaveragestoeliminatesomeoftheyeartoyearpeaksandtroughs.Howdotheindustrieswhereyouworkperform?
ThereportshowsthatGTOshavedifferentlevelsofsuccessindifferentindustriessoitisimportanttounderstandtheindustrieswhereyourGTOisworking.GreaterinsightintohowGTOsareperformingindifferentindustriescanbegainedbyexaminingthetablesinAppendix1thatbreakthisdatadowntoastatelevel.TablesinAppendix1showchangesinGTOperformancebymajorindustrysectorfortheyears2001to2009.Thisdataisshownforapprentices,other(trainees)andallformsoftrainingusingbothactualnumbersandthreeyearrollingaverages.
2 UserGuide–LookingAhead
HowtoreadthetablesinAppendix1isillustratedbelow:
ReadingAppendix1
APPENDICESAPPENDIX 1: GTO PERFORMANCE BY
STATE AND INDUSTRY SECTOR 1
APPENDICESAPPENDIX 1: GTO PERFORMANCE BY
STATE AND INDUSTRY SECTOR 1Victoria: apprentices
Category FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009
Gta intraining 4,809 4,565 4,687 4,827 5,140 5,326 5,293 5,351 5,126
aLL intraining 35,149 36,137 38,132 40,389 42,587 44,195 45,536 47,773 48,871
Gta commenced 1,389 1,824 1,921 2,108 2,223 2,118 2,010 2,249 1,668
aLL commenced 13,386 14,418 15,981 17,759 17,657 17,414 18,516 20,645 17,735
Gta completed 982 916 1,019 984 909 1,019 1,062 1,100 1,162
aLL completed 5,774 6,573 7,023 7,282 7,614 8,088 8,649 8,851 9,402
Looking Ahead
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Looking Ahead
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APPENDICESAPPENDIX 1: GTO PERFORMANCE BY
STATE AND INDUSTRY SECTOR 1
APPENDICESAPPENDIX 1: GTO PERFORMANCE BY
STATE AND INDUSTRY SECTOR 1Victoria: apprentices (continued)
GT Intraining Industry Share FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009
agriculture, Forestry and Fishing (a) 14.3% 13.2% 12.8% 12.4% 13.0% 13.7% 13.6% 13.0% 12.1%
Mining (B) 12.0% 11.1% 10.6% 10.3% 10.5% 10.9% 10.8% 10.4% 9.9%
Manufacturing (c) 12.4% 11.4% 11.1% 10.8% 11.0% 11.3% 11.0% 10.6% 10.0%
electricity, Gas, Water and Waste services (D) 15.7% 14.5% 13.9% 12.9% 12.4% 12.2% 11.6% 11.2% 10.7%
construction (e) 15.8% 14.6% 14.1% 13.5% 13.5% 13.0% 12.0% 11.4% 10.3%
Wholesale trade (F) 13.9% 12.8% 12.4% 12.0% 12.1% 12.2% 11.9% 11.5% 11.0%
retail trade (G) 10.6% 9.8% 9.7% 9.6% 9.7% 9.8% 9.7% 9.4% 9.0%
accommodation (H) 6.5% 6.0% 6.1% 5.9% 5.5% 5.6% 5.1% 4.0% 3.8%
transport, postal and Warehousing (i) 16.6% 15.3% 14.7% 14.4% 14.7% 14.9% 14.8% 14.4% 14.1%
information Media and telecommunication (J) 14.1% 13.0% 12.5% 11.5% 10.9% 10.7% 10.3% 10.0% 9.6%
Financial and insurance services (K) 15.0% 13.9% 13.5% 12.9% 12.8% 12.6% 12.2% 11.8% 11.3%
rental, Hiring and real estate services (L) 14.4% 13.2% 12.8% 12.6% 12.9% 13.1% 13.0% 12.7% 12.2%
professional, scientific and technical services (M) 15.2% 14.0% 13.5% 12.8% 12.7% 12.6% 12.0% 11.4% 10.7%
administrative and support services (n) 14.9% 13.7% 13.3% 12.8% 13.3% 13.8% 13.6% 12.9% 12.1%
public administration and safety (o) 10.5% 9.7% 9.4% 9.2% 9.5% 9.9% 9.9% 9.7% 9.2%
education and training (p) 14.2% 13.1% 12.7% 12.0% 12.0% 12.2% 11.8% 11.3% 10.6%
Health care and social assistance (Q) 8.0% 7.4% 7.3% 7.1% 7.0% 7.1% 6.8% 6.2% 5.8%
arts and recreation services (r) 13.1% 12.0% 11.7% 11.3% 11.7% 12.3% 12.3% 11.8% 11.1%
other services (s) 14.3% 13.2% 12.9% 12.9% 13.3% 13.6% 13.9% 14.0% 13.9%
Looking Ahead
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Looking Ahead
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IndustrysectordataisprovidedforGTOshare,GTOchangeinshare(threeyearrollingaverages)andasabarcharttoillustratechangeovertime.
Appendix1SectionforeachState
Actualnumbersandalso(nextpage)threeyearrollinggrowthaverages
Sub-sectionfor‘Apprentices’,‘Other’(trainees)and‘All’
ExamININg yOur pErfOrmaNCE
3UserGuide–LookingAhead
Figure6.1:distributionofproductivity
PartCoftheReportcontainsacomprehensiveanalysisoftheindustryperformanceandcarefulexaminationofthisdatawillallowyoutopositionyourorganisationinthisanalysis(basedonknowledgeofyourownperformance).Thissectionusesdifferentstatisticalapproachestoanalysedatacollectedinthe2009GTOsurveyundertakenbyNIEIR.Asaminimum,youwillneedtoknowyourFTEstaffinglevel(thatisallFTEstaffassociatedwithyourGTObusiness);thenumberofapprenticesandtrainees,and;youreffectivecompletionrateforapprenticesandtrainees.
REAdInGTHEGRAPHS
Figure6.1(page48)reproducedbelowshowsthedistributionofproductivityratesbetweenthe67GTOswhocompletedtheNIEIRsurveyin2009.ThefigurehasbeenannotatedtoshowhowitcanbereadtolearnaboutwheremostGTOssitaswellasthehighestandlowestperformingGTOsontheseeachmeasure.
pOSITIONINg yOur gTO wIThIN ThE INduSTry
Almost(47.8%)halfofGTOshavearatioofFTEstafftoapprenticesandtraineesofbetween17and26
TheminimumratioofFTEstafftoapprenticesandtraineesis8
Themaximumratiois47(46.6667)
Themeanormidpointratiois22(22.1798)
4 UserGuide–LookingAhead
Usingthisapproach,individualGTOscanpositiontheirownperformanceintermsofproductivity(Figure6.1),completionrates(Figure6.2),apprenticesandtraineesperclient(Figure6.5)andsoon.Wherethegraphsaresteep,thereisaverytightconcentrationofperformance.Forinstance,Figure6.5showsthatthedistributionofapprenticesandtraineesperclientformorethanhalfoftheGTOssurveyedonlyrangesbetween1.6and2.6eventhoughthemaximumis12.
HavingpositionedyourownorganisationinthegraphsbetweenFigure6.1and6.9itisworthreviewingthegraphsbetweenFigures6.11and6.19toseehowthesevariousfactorsimpacttheperformanceofGTOs.Forinstance,Figure6.11showsthatscaledoesnotnecessarilyimprovetheproductivityofGTOssurveyedforthisreport.
PEERPERFORMAnCE
TheReportspendssometimeevaluatingtheperformanceofGTOpeersbasedontheirresponsestothe2009survey(chapter7).EssentiallythisprocessinvolvedrankingGTOsbasedonasetofinternalandexternaldrivers(setoutonpage68and70)ofefficiency.Theanalysisthenlinkedrelativelyefficientwithrelativelylessefficientcounterparts(GTOsthataremostalike).TheanalysisaimedtodiscoverwhatmakesGTOsthatsharesimilarcharacteristics,relativelymoreefficient.AfulldescriptionofthefindingsissetoutinAppendix2(page272)andasummaryisprovidedinTable7.1(page69).ForconfidentialityreasonsitisnotpossibletoidentifyindividualGTOsinthisanalysis.
SubsequentanalysisinChapter8ranksGTOsbasedontwoperformanceindicators;productivity(apprenticesandtraineesperFTEstaff),and;averageproductivityandcompletionrates.ThisanalysisthenslicestheGTOsintoquintiles(20percent)andanalysesthecharacteristicsofGTOsineachofthequintileslices.AfullreportonthisanalysisisincludedinAppendix3(page274).Thebodyofthereportfocusesonananalysisofthetopandbottomquintile(page77and78)andthemainconclusionsfromthisanalysis(page79).
pOSITIONINg yOur gTO wIThIN ThE INduSTry
5UserGuide–LookingAhead
Part D of the report (page 92) looks at future markets for apprentices and the prospects for group training in this context.
ThisanalysiswillbeusefulinconsideringchallengesandopportunitiesforyourGTOthroughto2020.ThescenariousedfortheemploymentforecastsisdescribedinAppendix4(page293).Thescenariodescriptioncontainstheassumptionsthatunderlietheseforecasts.Thecircumstancesonwhichthisscenariowasconstructedmaychangeovertimesoitisimportanttounderstandthiswhenpreparingyourbusinessstrategy.
TheanalysisinthissectionusestheSORRegionsdetailedinAppendix7.ThefirststepinmakinguseofthismaterialistobeclearabouttheregionsandindustriesyourGTOintendstobeactiveinoverthenextdecade.YouwillneedtolistSORRegionsrelevanttoyourbusinessandtheindustrysectors(basedonANZSICsectorsusedbytheAustralianBureauofStatistics).
REGIOnAlSUMMARyTABlES
Forregionsrelevanttoyourbusiness,itmaybeworthassemblingdatafromvarioustablesintoasummarytablesuchastheonebelowusedinpresentationstoGTAStateassociations(thetablesfromwhichrelevantdatahasbeendrawnisshowninthelastcolumn):
Thefirstlinesshowsforecastemploymentgrowthfortheregion(inthiscaseMelbourneCentral)drawnfromTable10.1(page93);thesecondshowschangesinthe
apprenticeintensity(ratiooftotalapprenticeweightedemploymenttototalemployment)drawnfromTable10.2,and;thelastlineshowsanticipatedapprenticecommencementsforthatregiondrawnfromTable10.3.Inthecaseofemploymentandcommencements,changeintheregion’sshareofthenationaltotalbetween1998and2020arealsoshown.Assemblingthedatainthiswaywillallowyoutogainasnapshotoftheforecastsrelevanttoyourregions.Sofortheregionabove,itisanticipatedtherewillbestronggrowthinbothemploymentandapprenticecommencementswiththeregion’sshareofthenationaltotalincreasingonbothmeasures.Thisisdespiteapprenticeintensityfallingbetween2010and2020.ThistablecanbeproducedforeachoftheSORRegions.
IfyourGTOisinterestedinparticularindustrieswithinparticularregions,forecastsforemploymentgrowthbyindustrysectorbySORRegionareprovidedanAppendix5(page312).Apprenticeintensityandapprenticecommencementforecastsarenotprovidedbyindustrybutsomeinterpretationcanbeappliedtotheemploymentfigures.
REGIOnAlRAnKInGS
Asummarytablerankingregionsbasedonanticipatedchangeinapprenticesintrainingbetween2010and2020isavailableinTable14.1(page124).Thisshowssomeregionshavestronggrowthwhileotherswillexperiencenegativegrowth.
fOrECaSTINg fuTurE prOSpECTS
Table1:MelbourneCentralForecasts
Share Table
2006 2010 2015 2020 1998 2020
Employment 255,259 285,270 321,197 361,649 2.4 2.6 10.1
Apprenticeratio* 87 97 93 88 2007 2020 10.2
Commencements 4567** 3740 4918 7655 6.0 7.3 10.3
*Base:1998=100 **2007
6 UserGuide–LookingAhead
GTOGROWTHAndTHREATSTOGROWTH
Chapter12(page104)looksattheprobabilityforgrowthinGTOapprenticesintrainingthroughto2020foreachStateandTerritory(anationaltotalisalsoprovided).ThisanalysisisavailableforeachoftheSORRegionsinAppendix6(page369).Thesegraphscanbereadasfollows:
Thissectionalsoincludesabarchartshowingsourcesofrisktotheseprojectionsfromtwoprincipalareas;macroeconomicgrowthandcrowdingoutduetodemandforskillsgeneratedbytheresourcesindustry.ThisriskvariesforeachStateandRegion.
OPTIMISATIOnAnAlySIS
Chapter13providesanoptimisationanalysisthatessentiallyindicateswhichregionsarelikelytobefavouredbyorganicgrowthandinwhichregionsGTOswillneedtofindtheirowngrowth.ThisanalysistakesfromotherpartsofthereportthreerulesabouttheperformanceofGTOsintermsorproductivityandcompletionrates.ThesearethatproductivityandcompletionratesofGTOswillimprovewhen(a)thereisslowergrowthinapprenticesinaparticularregion,(b)thelowertheratiobetweenapprenticesintrainingandunemployed,and(c)thehighertheunemployment
rateuptoagiventhreshold.Usingtheserules,theReportlookstooptimisegrowthacrossthewholeGTOsectorbyallocating500additionalfieldstafftoregionswheretheycanhavemaximumimpact.ThestudyfindsthatoptimisationcanincreaseGTOmarketsharebuttherearewinnersandothers.Table13.2(page119)identifiesthewinnersandothersfromthisoptimisationstrategy.Itmeansthatthoseregionsnot‘favoured’bythisstrategyneedtolookforotheropportunitiesandapproachesforGTOstoincreasetheirmarketshareastheywillnotbefavouredbyeconomicconditions.
fOrECaSTINg fuTurE prOSpECTS
Figure12.1(a):newSouthWales:Cumulativeprobability–changeinGTOapprenticesintraining–2010–2020(number)
Rangeofprobableoutcomes
Minimumgrowthexpected2010to2020
Maximumgrowthexpected2010–2020
Meanormidpointgrowthexpected
7UserGuide–LookingAhead
Basedontheforegoing,youshouldnowhavesomedetailedinformationyoucanuseinreviewingyourstrategicplan.AtthispointyoushouldreviewtheindustryanalysiscontainedinPartBoftheLooking Aheadreport.Thiswillrefreshyourthoughtsaboutyourtwomaincustomers(employersandgovernments)andthethoughtsofyourpeersonthreatsandopportunitiesfortheindustry.Chapter5willalsoprovideyouwithawayoflookingatyourbusinessinacompetitiveenvironmentbyreviewingindustrydynamics,yourcustomers,suppliers,barrierstoentry,competitorsandsubstitutes.Atthispointyoushouldhavesomeclearideasaboutthetypeofbusinessmodelyouaretryingtofollow;whetheryouseeyourselfasacommunitygroup,asaregionalbusiness,anindustry-basedoperationorasanationalcorporateentity(whetherforprofitornotforprofit).
Followingthis,youshouldturntoPartE.ThisreviewsthemainfindingsofthestatisticalanalysisandbuildsonthedefinitionoffourGTObusinessmodelsfromPartB.ItstressestheimportanceofbeingclearwhichbusinessmodelyourGTOispursuing,asconfusionaboutthebusinessmodelwillleadtoconfusionaboutstrategy.OfthefourstrategicstepsoutlinedinChapter14(page125),tworelatetounderstandingyourbusinessmodel.Thenextstepistobeclearaboutwhoyourcustomersare,whatservicestheyreallyvaluefromyourorganisationandhowyoucanbuildyourrelationshipwiththosecustomersbyprovidingadditionalservices(consistentwithyourskillsandcapabilities).
OtherstepsyouwillneedtoconsiderinvolvereducingcostsbyamalgamatingservicesthroughmergersorcooperationwithotherGTOsandreviewingtheskillsavailablewithinyourorganisationstoexecuteastrategyinlinewithoneofthebusinessmodels.Thisreport
stressestheopportunityforGTOstoprogressfrombeingacommunityserviceorganisationtoafullworkforcedevelopmentpartner.NotallGTOswillwanttofollowthatpathbutthosethatdowillneedtoreviewtheirstrategy,theirmanagementstructuresandtheirskillsbase.Up-skillingandbuildingrelevantskillsisasimportantforGTOsasitisfortheircustomers.Itwillalsoinvolvechangesinthewayyoutalkaboutyourbusinessandmarketyourservices.Although,itisimportanttorememberthattheexternalbrandneedstobebuiltontheinternalcultureandcompetencies.
SUMMARyISSUESFROMSTATEGTAPRESEnTATIOnS
ThefollowingpointssummariseissuesmadeinStateGTApresentations.
• GTOmodelhasvariablestrengththroughthebusinesscycle,fromregiontoregionandindifferentindustries
• Thefuturewillseechangingdemandbetweenindustriesandregions
• Needclarityofbusinessmodel,targetedstrategy,marketintelligence
• Biggerisnotbetterwithoutmarketandstaffdevelopment
• GTOshavetwocustomerswithdifferentneedsandexpectations
• GTOsneedtotransitionfrom‘whatwedo’to‘howcanwecreatevalueforcustomers’
• GTOscanmovefrom‘problems’to‘solutions’forgovernment(strongpartner)
• AllGTOsneedtocommittoperformancemeasuresandbetterindustrydata
rEvIEwINg yOur STraTEgIC plaN
Community Service WorkforceDevelopment Partner
Service Provider
Community-based GTOs
Industry service organisations
Corporate GTOs
Multi-regional
Community
Industry
Strategic partner
Multiple Service Offer
One-stop-shop
8 UserGuide–LookingAhead
NIEIRcanprovideatailoredpresentationtoanindividualGTOthatwouldformthebasisofahalfday(orfulldayifrequired)strategydiscussionwithyourBoard,seniormanagementteamorboth.Thatdiscussionwouldhelpcraftamediumtolongertermstrategicplanfortheorganisation.Thepresentationcouldincludeallorsomeofthefollowingelements:
AsummarypresentationontheLooking Aheadreport,itskeythemes,rationaleandmessagesthatwouldsetthecontextforthediscussion;
AnanalysisoftheindividualGTObasedoninformationprovidedbythatorganisationaspartofthequantitativesurveyofgrouptrainingorganisationsin2009(assumingtheorganisationparticipated),andanysubsequentinformationprovidedbytheGTO.Elementsofthiscomponentwouldbe;
a. AnanalysisofthebusinessmodelbeingemployedbythatGTOandwhereNIEIRwouldseethatorganisationpositionedintermsofthefourbusinessmodelsidentifiedintheLooking Aheadreport.
b.AnanalysisofwheretheindividualGTOstandsinrelationto(a)itspeers(usingthepeeranalysiscontainedinChapter7ofthereport)and(b)GTOsgenerally(usingthequintileanalysiscontainedinChapter8).Thiswouldprovidesomebenchmarkingfortheorganisationinrelationtopresentproductivityperformanceandarangeofotherfactors(scale,unemploymentrate,hostdensity,otherincome,marketdensity,completionrates,industrydiversity,geographicfocus,completionrates);
AnanalysisoftheGTOcatchmentormaincatchmentsatStatelevelintermsofoverallperformanceand,wheretheGTOoperatesinselectedindustries,industryperformance(basedonAppendix1)
AnanalysisofregionalperformanceforthemainregionswheretheGTOoperatesexplainingemploymentperformance,apprenticecommencementsandGTOshareofapprenticecommencements
AforecastforchangeinthemajorregionswheretheGTOoperatesintermsofemployment,apprenticecommencementsandthepotentialforGTOstogrowmarketshare.
ThismaterialwouldbesummarisedtohighlightwhatNIEIRseesasthemainstrategicconsiderationsfortheGTO.ThesummarywouldsetupastrategicconversationfortheGTOintermsofwhatsortofGTOtheorganisationwantstobe(businessmodel);whattheimplicationsofthisdecisionwouldbeintermsofhowtheGTOisstructuredandbuildsitscapacity,thecustomersitisseekingtoserveandwhatthosecustomersmaybeseekingfromtheGTO.Itwillchallengethisstrategicvisionwithwhatthepotentialmaybeintermsofindustryandgeographicexpansionandtheopportunitiestheremaybetoexpandtheproductorserviceofferoftheorganisation.
Cost:$5,000professionalfeepluscosts(travel,accommodationifnecessaryetc)+GST
Contact:MichaelSpencer,([email protected])
JulieBarker,NIEIR,0394888444
furThEr advICE aNd INfOrmaTION
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9UserGuide–LookingAhead
Recentreportshavehighlightedtheroleofgrouptrainingorganisations(GTOs)as‘intermediaries’inthelabourmarketlinkingemployersseekingtodeveloptheirskilledlabourforcewithemployeesseekingcareersinskilledoccupations.GTOseffectivelyfacilitatethisrelationship;absorbriskandenhanceoutcomesforbothparties.TheNationalWorkforceDevelopmentStrategy1identifiedintermediariesincludingGTOsas‘brokersofbusinessandskillsdevelopment’whiletheNationalResourcesSectorEmploymentTaskforce2sawthemas‘facilitatorsofskillsdevelopment’.ArecentNCVERreporton‘highqualitytraineeships’identifiedthevalueofGTOsas‘contributingsignificantlytothequalityoftraineeshipsandcriticaltosafeguardingemployerinterestswhilealsoprotectingemployeesfrompotentialexploitation’3.
TheseobservationscomeasGTOsstrugglewithcompetingdemandsplacedonthemandabusinessmodelthathasinherentlimitations.Inresponse,manyaretransitioningthemselvestoabroaderandmorecommercialfocustoensuretheirlongertermsurvival.Thistransitionbringsthecompetingdemandsintosharperrelief.Ascommercialorganisations,GTOswillalignthemselveswithwhataddsvaluetothecustomerswhopayfortheirservices(predominantlyemployers)andreduceoreliminateservicesthatdonothaveaclearcommercialdriver(oftentheservicesgovernmentexpectsthemtoprovide).GovernmentpolicymakersexpectGTOstoprovidesuperiorperformance(intermsofpromotingAustralianApprenticeshipsandachievinghighcompletionrates);toworkwiththemoreexpensiveemployersegments(SMEs),todeliverlabourequityprograms,andtoprovideinputtopublicpolicyformulation(allserviceslackingacommercialdriver).
RecognisingtwokeycustomersandreconcilingtheircompetingdemandsisakeyfirststepforGTOsindevisingastrategyforthefutureofgrouptraining.AtpresentthereissomeambivalenceintheattitudeofGTOstogovernmentandviceversa.GTOsgenerallyseegovernmentincomeasaverysmallpartoftheiroverallrevenuebasecomparedtorevenuefromemployers(lessthanfivepercent)butalso(predominantly)seegovernmentfundingandgovernmentpolicydirectionasvitaltotheirfuture.For(most)policymakersGTOshaveaspecialplaceduetothesheernumberofapprenticesandtraineesemployedbuttherelationshipismovingtoamoretransactionalbasis.ThisfollowsapatternidentifiedbytheProductivityCommission4initsrecentreportonthenot-for-profitsector5.GovernmentisconstantlyreviewingitspaymentstoGTOsandlookingforclearermeasuresofperformanceanddemonstrationofoutcomes.ItalsofundsorganisationssuchasAustralianApprenticeshipsCentres(AACs)thatcompetewithatleastsomeoftheservicesprovidedbyGTOs.
Grouptrainingwillnotonlyneedtorespondtothechallengingpolicyenvironmenttodefineitsfuture,itwillneedtorespondtoaneverchangingbusinessenvironmentandlearnfromitsexperiencethroughtheoscillationoftheeconomiccycle.
1 Australian Workforce Futures: A national workforce development strateg y,SkillsAustralia,Canberra,2010.
2 Resourcing the Future: National Resources Sector Employment Taskforce, DiscussionPaper,AustralianGovernment,Canberra,2010.
3 High Quality Traineeships: Identifying What Works,SmithE,ComynP,BrennanKemmisR,SmithA,NationalCentreforVocationalEducationResearch(NCVER),Adelaide,2009.
4 Contribution of the Not For Profit Sector,ProductivityCommissionResearchReport,ProductivityCommission,Canberra2010.
5 GTOsincludeboth‘forprofit’and‘notforprofit’organisations.Governmentpolicyinitiativestendtositmorecomfortablywith‘notforprofit’organisationsbecausetheytendtonothaveastrongcommercialdriverbut‘forprofits’arenotexcluded(asevidencedbytheGTOnationalregistrationsystemandnationalstandardsrequirementstoaccessgovernmentfunding).
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Grouptrainingasaconceptisnow30yearsold,thisstudyshowsthatwhileitcontinuestobeaverysignificantemployerofapprenticesandtrainees,itlostmarketshareovertheperiodfrom2001to2009.Thisreporthasidentifiedthreefactorscontributingtothislossofmarketshare:
• strongemploymentgrowthovertheperiodunderminedthecompetitivenessofthegrouptrainingmodel(grouptrainingwouldappeartobelesscompetitiveinatightmarket);
• grouptrainingdidn’trespondtothegrowthinthemarketforskillstrainingeitherbecauseitchosenottoenternewsegmentsthatemergedoritdidnothavethecapacity;and
• grouptrainingfacedotherchallengessuchastheemergenceofAustralianApprenticeshipsCentres(AACs)promotinglowercostalternativestoemployersthroughdirectemployment.
ExaminationoftheperformanceofgrouptrainingoverthiseightyearperiodhighlightssomeofthechallengesthebusinessmodelfacesandwhymanyGTOsarelookingtoexpandtheirbusinessbase.Theanalysisfoundthat:
• demandforgrouptraining(asmeasuredbygrouptrainingshareofallapprenticecommencements)isnotuniformthroughthebusinesscycleandisnoticeablylessinatightmarketforskilledemployees;
• demandforgrouptraining(samebasisasabove)isnotuniformacrossregionsandisinfluencedbylabourmarketconditions(demandislowerwherethereisahighgrowthincommencementsandgrouptrainingislesssuccessfulwherethereareveryhighorverylowratesofunemployment);and
• demandforgrouptrainingvariesacrossindustriesandtendstobestrongestintraditionalindustriessuchaswholesaletradeandtransport(andtoalesserextentmanufacturing,miningandtelecommunications).
Respondingtothechangingmarketandbusinessenvironment,GTOshaveadoptedarangeofapproachesorbusinessmodelsrangingfromthetraditionalcommunityservicemodeltoamodelthatseesgrouptrainingasoneserviceofferedbyanintegratedcorporateentity.NIEIRhasdefinedfourbusinessmodeltypesforgrouptraining:
• acommunitymodel(reflectingtheoriginsofgrouptraining);
• aregionalmodel(regionally-basedenterprises);
• anindustrymodel(generallyfocusedononeindustry),and;
• acorporatemodel(national,multi-region,multi-product).
Itwouldbewrongtoimplythatthereisoneoptimalbusinessmodelorthatonemodelisrightandotherswrong.Thiswilldependonthecircumstancesoftheindividualorganisation(e.g.size,geographicspread,industryspread,purposeetc.).Whilemodelsmayhavedifferentlevelsofperformanceintermsofoperationalefficiencyandcompletionrates,onemodeldoesnotexhibitoptimalperformanceinboth.
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Ingeneral,thereisamovebyGTOstowardamorediverseserviceofferandgreatergeographicspread.However,responsestothechangingbusinessenvironmentarenotuniform.Oneoftheobjectivesofthisstudywastounderstandthedifferentresponsesandtounderstandthemostperformance-enhancingapproachestocreatingafutureforgrouptraining.TodothisNIEIRinterrogatedstatisticaldata,quantitativesurveydata,qualitativesurveydataandNIEIReconometricmodels.Itappliedarangeofanalyticaltoolstothisdata.Someofthekeyfindingsareasfollows.
• Ingeneralthereisacleartradeoffbetweenhigherlevelsofperformanceintermsofproductivity(AustralianApprenticesperGTOFTEstaff)andcompletionrates(proportionofAustralianApprenticescompletingindenturedtraining).
• ForGTOsofthesamescaleandgeographicstructure,afocusoncommunityobjectives(labourmarketequityprograms)canlowerproductivitybyupto25percentandlowercompletionratesbyfiveto10percentcomparedtoGTOswithnarrowcommercialobjectives.
• CorporateGTOsareover-representedinthebestperformingGTOsforproductivity(AustralianapprenticesperGTOFTEstaff)whileregionalGTOsareover-representedinthegroupwiththelowestperformanceforproductivity.
• Scalebyitselfdoesnotleadtosuperiorperformance.LargescaleGTOsareover-representedamongthelowestperformingGTOs.Expansionbyindustryandregionswillnotsucceedunlessitiswell-resourcedwiththerightpeople,relationshipsandresources.
• Industrydiversificationdoesnotbyitselfimproveperformance.Infact,specialisationwillingeneralimproveperformance.
• ForGTOswiththesamegeographicstructureandsingleindustryfocus,thosethatfocusonhighvaluetradeskills(e.g.construction,mining)haveproductivityandcompletionlevelsofbetween15and30percenthigherthanGTOsthatfocusonlowerskills(e.g.hospitality).
• Geographicdiversitybyitselfdoesnotimproveperformance.Givensimilarscale,GTOswithmoregeographicdiversitywillhave25percentlowerproductivityand(potentially)asimilardeclineincompletionratescomparedtoGTOsthatoperateinoneregion.
CurrentperformanceofGTOswasanalysedbyrankingGTOsbasedoneffectiveness(productivityandcompletionrates)andcomparinggroupsofpeerGTOs(similarsize,structure,focus)withthebestperformingGTOinthatgroup.Itshowedperformancecouldbeimprovedthrough:
• targetedregionaldiversification(based,forinstanceonlabourmarketconditions);
• tighterindustryspecialisation
• generally(withcarefultargeting)increasingAustralianApprenticesperhostemployer;and
• diversifyingservices.
MoreeffectiveGTOstendtobedistinguishedfromtheirlesseffectivepeersbecausethey:
• haveastrongmanagementcultureandclearorganisationalobjectives;
• areoptimisedintermsofscaleand/orregionalmarkets;
• areindustryspecialistsratherthanindustrygeneralists;
• havecustomersinhighskillindustries(withanappropriatescaleofoperation);and
• offeradiversityofservicestomeetcustomerneeds.
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GTOshaveasenseofwheretheirfuturelies.QualitativesurveyworkwithGTOspointedstronglytowardamoreintegratedserviceoffer(grouptrainingplusotherskilledemployment-relatedservices),demonstratedperformance,strongexpertiseandbrand.Thisisbroadlyconsistentwithhowemployersseethefuture.Theywantqualitycandidatestomeettheirskillrequirementswithminimalcomplexityatacompetitiveprice.Theywanttoworkwithtrustedpartnerstodevelopskilledemployees.Partnershipswillbebasedonlong-termrelationships,qualitysupervisionandvalueformoney.Whilesimplystated,deliveringonafutureforgrouptrainingwillrequirefundamentalchangesinhowGTOspositionthemselvesinthemarket,researchtheirmarketsandcustomers,stafftheirorganisations,thinkabouttheservicetheyoffer,manageandleadtheirorganisationsandcontrolcosts.
Thefutureofgrouptrainingorganisationswillbeasgenuineintermediariesinthelabourmarketofferingasuiteofworkforcedevelopmentoptionsthatgeneratelong-termvaluefortheiremployercustomers.Mostwillalsoseektomeettheneedsofgovernmentcustomersasvaluedpartnerswhocanbereliedontodeliversuperiorpolicyoutcomes.Afirststepwillbetodefinethebusinessmodelthatbestsuitseachorganisation.
CommunitybusinessmodelNotallGTOswillbethesame.Thecommunitymodelwilltendtohaveacloseaffinitywithgovernmentpolicyobjectives(labourequityprograms)andworkinareasthatarelesscommercialmakingtheseGTOsmoredependentongovernmentsupport.Towinsupporttheywillneedclearperformancemeasures;notgenericmeasuresbutmeasuresthatdemonstrateperformanceinmorechallengingmarketswherecompletionrateswillbelowerandcostshigher(performancerelativetoaparticularcohortratherthangeneralrates).Thestrengthofthismodelwillbeitsrelationshipswithemployersinthecommunity.Buttheywillneedtounderstandtheirmarketandnottakeitforgranted.Theywillneedtolookattheircostsandcouldimproveefficiencythroughaggregationorsharingofbackofficeservices.Theywillneedtolookattheirserviceofferandopportunitiestostrengthenthisthroughalliancesoragreementswiththirdparties.
CorporatebusinessmodelCorporateGTOswillbydefinitionworknationalmarketsstrategicallyfocusingonthemostopportunesegmentswithacomprehensiveskilledworkforceserviceoffer.Theywilldevelophighlevelrelationshipswithseniormanagersincustomerorganisationstounderstandtheirissuesandrecommendsolutions.Thesolutionstheyoffermaybegrouptraining;outsourcedmanagementofapprentices;recruitment;temporarystafforlabourhire.TheywillbeabletoofferservicesofanRTO,anAAC,aHumanResourceconsultantoranagency(recruitment,temp,labourhire).Thedangerwillbealackofkeymanagementcompetencies,staffcapabilitiesandstrategicdiscipline(toavoidpursuingsizeforthesakeofsizeorgeographicspreadforthesakeofbeingnational).Theywillbeabletospreadcostsoveralargerrangeofservicesbutwillneedtoensurethisopportunityresultsincompetitiveprices.Theywillneedtoputtogethermanagementandstaffteamsthatdeliveraqualityserviceatacompetitivepriceandcapturesynergiesthroughintegrationoftheserviceofferratherthansimplyofferingarangeofservices.Themodeldoesnotnecessarilyabandonthecommunityheritageofgrouptraining.Forinstance,anorganisationmayestablishabusinessunitwithinitscorporatestructuretofocusonlabourequityprogramsorservicesforgovernmentcustomers.Trackingandbenchmarkingperformancewouldbejustasimportanttothismodel.
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RegionalmodelRegionalGTOswillhaveelementsofboththecorporatemodelandthecommunitymodel.Thechallengeherewillbethedisciplineappliedtomarketresearchandunderstandingtheirregionaswellastheopportunitiesforgrowth.RegionalGTOshavethehighestriskofbeingstuckin‘no-man’sland’particularlyiftheyareinaregionwithstaticorshrinkingdemandforapprenticesandtrainees.Intryingtobe‘allthingstoallpeople’theyrisklosingclarityabouttheircustomerbase,whatgeneratesvalueand(moreimportantly)whatdoesnotgeneratevalue(eitherforcustomersorthemselves).Theywillnormallylacksizeandscaletomaintainacompetitivecostbase,developacomprehensiveserviceoffer,anoptimalmanagementstructureandstaffskills.Inattemptingtorespondtochangesintheoperatingenvironmenttheywouldbepronetomakingbadchoicesbecausetheylackcapacitytoevaluatebusinessoptions.Thefactorsthatgivethemanadvantageintheirhomemarkets–relationshipwithemployers–wouldworkagainstthemiftheychosetoexpandtonewregions(lackofrelationships).ForregionalGTOscooperationagreementstosharebackofficeservicesandbroadentheirproductofferwillbemostimportant(ifnotmergersthatachievethesameoutcomes).Theywillbehighlydependentonthenetworkingopportunitiestoacceleratelearningandadaptationtothechangingbusinessenvironment.Solidmarketresearchwillbevitaltodevelopingtheirstrategyforthefuture.
IndustrymodelIndustryGTOshavetheadvantageofgoodrelationshipsandaclearfocusfortheirbusiness.However,thisreportshowsthatsomeindustriesaremoreopportuneforgrouptrainingthanothers.Eveninindustrieswherethereisarelativelystrongopportunityforgrouptraining,relationshipsbuiltonsolidperformancewillbeimportant(andanaffiliationwiththerelevantindustryassociation).Industry-basedGTOstendtobestrongestinconstructionbuthavestruggledinweakerskillareassuchashospitality.Themainopportunityforimprovementisthroughmarketresearchtounderstandcustomerrequirements,lowercostsandbroadentheserviceoffertorespondtomarketopportunities.
Theriskforindustry-basedGTOswillbefailingtodemonstrateclearperformancetocustomers;forotherorganisationsintheindustry(labourhirefirms)toexpandintogrouptrainingor;tofailtosecurecustomerrelationships(creatinganopportunityforcompetitors).
Thereareanumberofissuesthatapplyregardlessofthebusinessmodelselected.Theseincludethefollowing.
PerformancemeasuresThisreporthasstressedtheneedtodevelopamoresolidbasisformeasuringandevaluatingperformanceofGTOs.Thiswillbenecessaryfornegotiationswithgovernment.Itwillalsobenecessaryasadriverforimprovedperformance.CorporateGTOswillneedtotrackperformancerelativetotheirpeers.Aswell,regionalGTOswillneedtounderstandperformancewithintheirmarketandtheirmarketrelativetoothers.SimilarlyindustryGTOswillneedtolookatperformancewithintheirindustryandtheirindustryrelativetootherindustries.Thepresentlevelofperformancetrackingwithintheindustryshouldbeamajorconcerntoparticipants.
PositioninginthemarketAmajorhandicapidentifiedinthisreportistheexternalperceptionofgrouptraining(communicatingthevaluepropositiontocustomers)andtheinternalperception(manyGTOsarelockedintotheconceptofgrouptrainingratherthanunderstandingtheservicetheyoffer).Grouptrainingdescribesawayofoperating(arailway)ratherthanwhatitdoes(transport).GTOsneedtofocusontheservicestheyprovidetocustomers(andhowthatrelatestowhatcreatesvalueforthem)ratherthancommunicatingaconcept.TheprecisewordswouldneedtobethesubjectofaseparateexercisebutessentiallyGTOsofferworkforcedevelopmentsolutionstoemployersandapolicydeliveryplatformtogovernment.EmphasisingservicedeliveryhasthepotentialtoliberatethinkingwithinGTOsandthegrouptrainingmovementgenerallyandfocusoncustomerneeds.
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MarketresearchThereisaconcerninglackofmarketresearch.Scenariosforecastingdemandthroughto2020developedforthisreportshowstherearemajorproblemsonthehorizonforGTOsinanumberofkeymarkets.InmanypartsofAustraliademandforapprenticeswillbestaticorfalloverthenext10yearswhileinotherareasitwillgrowstrongly.Insomeindustries,therewillbelittlegrowthwhileinotherstherewillbestronggrowth.Someindustriesaremoreaccustomedtoworkingwithgrouptrainingandarethereforemoreprospective,othersarenot.GTOsneedtounderstandtheircustomerneedsanddeveloptheinternalcompetencetorespondtothoseneeds.
PeopleandcompetenciesThisreportnotesthatonereasongrouptraininglostmarketsharewasbecauseitfailedtorespondtogrowthintheapprenticemarketoverthepasteightyears.Onereasonwasthatgrouptrainingdidnothavethecapacitytorespondtothismarketshift.GTOswillneedtofundamentallyrethinkandrebuildtheirorganisationsaroundaservicedeliveryrole.CurrentstaffcompetenciescontributetolockingGTOsintotheexistingmodel.AlimitedrangeofcompetencieslimitstheabilityofGTOstorespondtoashiftinthemarketorseeknewopportunities.FewGTOshaveamarketingormarketdevelopmentfunction.Fewhavestaffwiththecapacitytodevelopsuccessfulworkforcedevelopmentstrategiesfortheircustomers.Atleastonehasexperimentedwithhiringdifferent(moreexpensive)personnelandseenrewardsfromthis.Thereisatendency,perhapsstemmingfromthecommunityfoundationofGTOs,toworkwithlowerpaidstaffwithgenerallyexcellentinterpersonalskillsbutlimitedprofessionalcompetenciesin,forinstance,HumanResourcestrategies.
ManagementandleadershipPeopleissuesinGTOsgotothetopinmanycaseswithBoardsthatreflectsolidcommunityfoundationsbutalimitedrangeofprofessionalcompetenciesandseniorstaffwhoareoftendrawnfromwithintheindustryandwhosethinkingmaybelockedintotheexistingbusinessmodel.Oneareaforimprovementidentifiedinthisreportisstrategicfinancialmanagement.GTOsneedtobeabletotrack,benchmarkandimprovetheirperformanceandunderstandtheimpactdifferentdrivershaveontheiroperationssuchasscale,employer(customer)characteristics,marketcharacteristics(size,growth,andunemploymentrates),economicconditions,internalskillandcompetencyneeds.GTOswillneedskillsinmarketresearch,marketing,mergers,acquisitions,alliancesandproductdevelopment.CEOswillneedtothinkholisticallyandstrategicallybutalsounderstandthefinancialdriversoftheirbusinessso‘babiesarenotthrownoutwithbathwater’.
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Governmentwillcontinuetobeakeyrelationshipforgrouptraining.ItwillsetthepolicyenvironmentinwhichGTOsoperateanddevelopitsownworkforcedevelopmentstrategies.GTOshavetheoptiontoworkwithgovernmentpolicymakersaspartners,helpingthemrealisetheirpolicygoals,ormovetoanincreasinglytransactionalrelationship.ToaccepttheofferofapartnershiphoweverwillrequireGTOstoworkwithgovernmentonsolutionsratherthanjustpresentproblemsforpolicymakerstosolve.TheywillneedtoacceptthatGovernment,likeothercustomers,areinterestedinoutcomesratherthanthegrouptrainingmodelforitsownsake.
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Partofthesolutionpolicymakersarelookingforcanbesolvedbydevelopingenhancedperformancemeasuresforgrouptrainingorganisations.Aslongaspolicymakerscanonlyseegeneralacross-the-boardperformancemeasures,GTOswhotakeonhighcostandlowerperformanceelementsofskillsdevelopment(suchaslabourequityprograms,workingwithSMEs,retaining‘outoftrade’apprenticesetc.)willhavetroublecommunicatingtheirperformanceandpolicymakers–nomatterhowsupportive–willhavetroublearguingforongoingsupportwithTreasuryandFinanceofficials.Ontheotherhand,GovernmentneedstobeclearitisaskingGTOstoprovideservicesthatdonothaveacommercialdriverandneedstorecognise(anditlargelydoes)thattheseservicesprovideapublicgoodthatneedstobepaidfor.
WorkingwithgovernmentaspartnerswillassistGTOsgainrecognitionforissuestheyseeasproblemssuchasbuildingtheflowofpeopleintoapprenticeshipsandtraineeshipswithoutadequatereferencetothetypeofpeoplemovingintothesetradesandoccupations.AnumberofGTOshavemadethepointthatsimply‘growingthesizeofthepipe’channellingpeopleintoAustralianApprenticeshipsdoesnotensureanimprovedskillsoutcomeforindustry.EnsuringprogramsareeffectivelytargetedisanareawhereGTOsandgovernmentcanbecomeveryeffectivepartners.ThispartnershipwillnotbeeffectivehoweverifGTOsareseensimplyasprotectorsofthestatusquoasappearstobethecaseinthecurrentdebateovercompetency-basedtraining.
Tomakethisrelationshipwork,GTOswillneedtobeflexibleandtakeabroadperspectiveonworkforcedevelopment(asopposedtogrouptraining).Equally,thereareissuesthatGovernmentwillneedtoaddressandthisreporthighlightsgovernmentfundingforAACsasanissuethatrequiresresolution.ItwouldappeartobeinconsistentwithGovernmentcommitmenttocompetitiveneutralitythatorganisationsfundedbyGovernmentarecompetingwithGTOsintheprovisionofcertainservices(atnocosttoemployers)whenGTOsneedtochargefortheseservices.
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GroupTrainingAustralia(GTA)willhaveakeyroleindrivingthisagendaforwardandprovidingtheleadershiprequiredtostewardGTOsthroughaprocessofevolutionandchange.ItwillbeimportantthatGTAapproachesthetaskconstructivelyandinclusivelycreatingopportunitiesforindividualGTOstochange.TherearetasksthatGTAwillhavetoleadsuchasthedevelopmentofthebrandthatrepresentstheserviceofferbeingprovided,developmentofperformancemeasures,skillsdevelopment,theindustry’sownworkforcedevelopmentstrategyandcreatingopportunitiesforalliancesandotherformsofjointandcooperativeactionbetweenGTOsthatcanreducecostsandenhancetheserviceofferofGTOs.Inshort,GTAwillneedboththecapacityandthemandatetoprovideleadershiptotheprocessofevolvingthefutureofgrouptraining.
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Grouptrainingiscurrentlycaughtbetweencompetingdemandsofdifferentcustomers(employersandgovernments)thatarereflectedindifferentGTOpriorities.Someseetheirfirstobligationascommunityservicewhileothersseetheirfirstobligationasstrongcommerciallyviableintermediariesintheworkforce.TheseobjectivesarenotmutuallyexclusivebutneedtoberecognisedasseparateandcompetingdemandsonGTOs;the‘twocustomers’approach.
ThedifficultyofreconcilingthesedifferentdemandsofGTOsishighlightedbytheobservationthatthereisatrade-offbetweenGTOcommercialandcommunityobjectives.ForGTOsofthesamescaleandgeographicstructure,afocusoncommunityobjectivescanlowerproductivity(AustralianApprenticesperGTOFTEstaff)byupto25percentandcompletionrates(proportionofAustralianApprenticescompletingindenturedtraining)byfiveto10percent.
Thecompetitivenessofgrouptrainingwithotherformsofemployment(e.g.directemployment)isnotthesamethroughthebusinesscycle(itislesscompetitiveinatightmarket).Grouptrainingisnotequallycompetitiveacrossregions(demandislowerwherethereishighgrowthincommencementsandislesssuccessfulwherethereareveryhighorverylowratesofunemployment).Norisitequalacrossindustries(moresuccessfulintraditionalindustriessuchaswholesaletradeandtransport).
Fourgrouptrainingbusinessmodelshavebeenidentified;community,corporate,regionalandindustrymodels.Thereportdoesnotshowthatonemodelisbetterthanothers.TheappropriatenessofeachmodelwilldependonthecircumstancesofeachGTO.However,forGTOstooptimisetheirperformance,theyneedtobeclearwhichmodeltheyarepursuing.
Growingsizeandscale,increasinggeographicorindustrydiversitywillnotbythemselvesstrengthenGTOs.Growthinsizeandscaleneedstobewellresourcedwiththerightpeople,relationshipsandresources.Geographicdiversificationneedstobecarefullytargetedand,generally,industryspecialisationwillbemoresuccessfulthanindustrydiversity.GTOsinindustrieswithhighervaluetradeskillswillbemoresuccessfulthanthoseinindustrieswithlowervalueskills.
Thefutureofgrouptrainingwillbeasagenuineintermediaryinthelabourmarketofferingasuiteofworkforcedevelopmentoptionsthatgeneratelong-termvalueforemployercustomersatcompetitivecosts.Mostwillseektomeettheneedsofgovernmentcustomersasvaluedpartnersinpolicydevelopmentwhocandeliversuperiorpolicyoutcomes.
AmajorimpedimenttoGTOsachievingthisfutureisafocusonthemechanism(grouptraining)ratherthantheservice(workforcedevelopment).EmphasisingservicedeliverytoidentifiedcustomershasthepotentialtoliberatethinkingwithinGTOsandthegrouptrainingmovementgenerally.ItwillallowGTOstothinkbroadlyaboutthevaluetheycreateforemployersanddevelopingbroad-basedlong-termpartnerships.
DeliveringthefutureforgrouptrainingwillrequirefundamentalchangestohowGTOspositionthemselvesinthemarket(theirbrand)andtheservicetheyoffer.Itwillrequirecomprehensivemarketresearchofcustomers(byindustryandregion);developmentofstaffcompetenciesandappropriatestructures,and;managerswhowillleadGTOsthroughaperiodofchange,negotiatesharedserviceagreementsormergers,understandmarkets,innovateandtightlycontrolcosts.
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