Contemporary Issues for Organisational Survival

1
Contemporary Issues for Organisational Survival

• CPA Public Sector Accountants Group (Vic)
• Presented by Wendy Lundgaard, Director

February 2007
2
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

• They are focusing on single industries, not
  diversifying
• They are positioning as a major, niche or
  ultra-niche for dominance (? master of own
  destiny)
• They are pursuing unique intellectual property
  (directly or as a franchisee) or
  monopoly/oligopoly licenses (banking, media,
  gaming)
• They are outsourcing non-core activities and
  functions.
• They are jettisoning passive (hard) assets,
  which only provide rental returns.
• (Phil Ruthven, 2004)

4
continued

• They are creating virtual corporations
  strategic alliances
• They are planning from the outside-in not the
  inside-out
• They are emulating world best practice for their
  industry and, where possible, aggressively
  globalising their businesses.
  
  
  
  
• They are developing unique organisational
  cultures.
• 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 indirect shareholders
• People issues talent, attraction, retention.

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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.

10
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 (PPPs) to increase
  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 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.

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Survival Essentials Workforce Planning
Align STRATEGY
With business plan, strategy goals
Current future demand for resources/
capabilities/locations
Assess skills DEMAND
INT Turnover, age profile, talent EXT
labour market trends
Assess current SUPPLY
Prioritise Shortfalls
Identify GAPS
Implement HR Strategy (Attract, Retain, Develop).
Implement
Close Gaps, IMPLEMENT
Establish performance indicators, metrics
(S.Melbourne,HR Monthly Oct 06)
REVIEW
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Workforce Planning HR Strategy
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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)

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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)

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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? Ratios, metrics,
  value for s

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HR Strategy Workplace Flexibility
Issues Increasing workforce participation
through creative flexible forms of working.
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HR Strategy Age Management
Issues mature age worker 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 _at_ 5)
• No growth capacity within unemployment sector
• Aust NZ Recruitment industry 16B pa
• Solutions Retain current, 55y.o. and mothers
• Other Solutions skills migration, internal
  promotion ( gt development), use of temps
  contractors

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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.

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People As Asset or Overhead?
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Survival depends on integrated strategy
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For more visit win-winws.com.au

• Presenter Wendy Lundgaard, Director

February 2007