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Contemporary Issues for Organisational
Survival
CPA Public Sector Accountants Group (Vic)
Presented by Wendy Lundgaard, Director
February 2007
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Overview
Global trends
Success Differentiators
Contextual issues for Public Sector Contemporary Workforce issues
Predications and Probabilities.
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Globally, what some of the best are
doing:
1. They are focusing on single industries, notdiversifying
2. They are positioning as a major, niche or ultra-
niche for dominance ( master of own destiny)3. They are pursuing unique intellectual property
(directly or as a franchisee) or monopoly/oligopolylicenses (banking, media, gaming)
4. They are outsourcing non-core activities andfunctions.
5. They are jettisoning passive (³hard´) assets,which only provide ³rental´ returns.
(Phil Ruthven, 2004)
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continued
6. They are creating virtual corporations &strategic alliances
7. They are planning from the outside-in not the
inside-out8. They are emulating world best practice for their
industry and, where possible, aggressivelyglobalising their businesses.
9. They are developing unique organisationalcultures.
10.They are leading first and managing second.
(Phil Ruthven, 2004)
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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).
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Success Differentiator
Not Assets
Not Brand
Not Reputation
Change
responsiveness
Innovation
Capability
Productivity
Quality of deliverables.
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Success differentiator
Success differentiator is largely driven
by the ¶people¶ factor.
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Contextual issues for Public Sector
Stakeholder expectations changing
Altered funding models
Mums and Dads as indirectshareholders
People issues: talent, attraction,
retention.
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Stakeholder Expectations
Balancing increased expectations with finiteresourcing
A J Citizen has µcrisis of confidence¶ inauthority (ie church, state/govt, politicians,authority figures)
Better informed about rights via increasededucation
Older, more experienced general public, alertto µspin¶.
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Altered funding models: infrastructure
Est. $900B required in next 20yrs to retainhigh 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) toincrease = on time, to budget
Infrastructure current focus. Future?(P Ruthven Nov 2006)
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Change brings challenges
Macro issues:
± Global skills shortage
± Ageing pop, health, male partic2.4% per decade
± Strong growth expected to continue (China etc) ± Pressure on infrastructure and services.
Micro issues: (at organisation level)
± No room for complacency, no µsilver bullet¶
± Exposes leadership & strategy deficiencies ± Adaptability and change responsiveness
± Scenario planning & effective Workforce Planning.
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Survival Essentials: Workforce Planning
Align STRATEGY With business plan, strategy & goals
Assess skills DEM ANDCurrent & future demand for
resources/ capabilities/locations
Assess current SUPPLY
Identify GAPS
Establish performanceindicators, metrics (S.Melbourne,HRM
onthlyO
ct 06
)
INT: Turnover, age profile, talent
EXT: labour market trends
Close Gaps, IMPLEMENTImplement HR Strategy (Attract,
Retain, Develop). Implement
REVIEW
Prioritise Shortfalls
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Wor f or l i : tr t
Employee E ement
Ali nment
erf orm nce&
r oductivity
Wor pl ce Flexibility &Wellbeing
Attr ction &etention
Gr owing
C p bility
Age M nagement( etir ement)
tr ategy
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HR Strategy: Employee Engagement
Typical profile: ± Engaged (30%),
± the Not Engaged (54%) and
± the Actively Disengaged (16%) Engaged µself directed¶ - responsible &
accountable
Rest µother 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)
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HR Strategy: Employee Alignment
Beyond commitment and engagement
Knowing what to do, how to do it, how itµfits¶ with organisations. goals, & feel
supported by manager Effort and performance of ALL parts are
united mission / goals
E
xternally marketed messages reflectthe reality for employees
Strong Alignment before µchange¶.(J.Garriock, Aust. Financial Review Feb 2007)
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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
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HR Strategy: Workplace Flexibility
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HR Strategy: Age Management
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Females Males
I ue : mature agewor ker health & productivity,
retirement transitions, quality part-time, mentors.
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HR Strategy: Attraction & Retention
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
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HR Strategy: Growing Capability
³Empires of the Future will beEmpires of the Mind´ (Churchill,1943)
Battle for brainpower - people+ their skills
Secondments and overseasassignments
Project ownership
Coaching, mentoring promotion.
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People As Asset or Overhead?
Assets? Deliverables
Clients
Employee engagement
Skills
Culture, Values and
Workplace Practices
Investment? Responsiveness
Retention
Competitive advantage
Managers ability Knowledge, capability &
committment
Relationships at Work
Overhead?
Program costsOvertime
Absenteeism
Turnover
Replacement costs
Liability?
Risks OH&S ± phys & psych
Discrimination
Presenteeism
Conflict at work
IR/ER Reputation
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Sur i al epends on integr ated str ategy
Employee Engagement
Alignment
Perf ormance&
Pr oducti ity
Workplace Flexibility &
Wellbeing
Attr action &Retention
Gr owing
Capability
Age Management(Retir ement)
HRStr ategy
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For more visit: win-winws.com.au
Presenter: Wendy Lundgaard, Director
February 200
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