Cpa Cont Issues Pres

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Contemporary Issues for Organisational

Survival

CPA Public Sector Accountants Group (Vic)

Presented by Wendy Lundgaard, Director

February 2007



Overview

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, 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)



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)



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 indirectshareholders

People issues: talent, attraction,

retention.



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¶.



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)



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.



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



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



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)



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)



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

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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.



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



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.



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



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



For more visit: win-winws.com.au

Presenter: Wendy Lundgaard, Director

February 200

Cpa Cont Issues Pres

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