EGIN Conference May 2007

1. EGIN ConferenceMay 2007 Employer Attitudes Towards Skills and Training – Changing Behaviours Michael Johnson - Chief Executive, BPIF

2. Behavioural Change • My observations of 5 years in Print • Areas we are falling down • A ‘sea change’ in our approach! • What needs to be done – all hands on deck • Business as usual not an option • We are collectively failing the industry?

3. Print Industry • At a tipping point • Last 5 years good for print • GDP/Advertising growth created benign conditions • Next 10 years far more challenging • Growth of E-media, multimedia, ICT, digital information • Print will find it hard to compete • Skills UK’s seriously big challenge • New forms of graphic vocational education

4. Poor Management Development? Three Causes: • [Companies] running low in management staffing, they do not have the capacity to send people on training • [Companies] do not see the need for management training as VITAL • A lack of realisation that having well-qualified management talent is mission critical for the future

5. What needs to be done? • More ambitious • Less insular • Train better – expect to train – better results • Stretch talent; encourage a different culture • Staff organise themselves/management plan change, refresh business • Define the skills matrix for print managers • Ensure good quality programmes in company

6. Attitude v Behaviour Behaviour (what people see) Attitude (change inside you)

7. Behaviour of Organisations Conceptual Upper MD/CEO Human (supportive) Middle Management Middle Production and Technical Shop Floor Lower Human Capital Development/ Strategic/Conceptual Shape the future of the organisation Focus on stability of organisation Management (good relations) Doing Reference: Katz & Kahn (1966)

8. Case Study • Armed forces – change people’s behaviour • First teach people how to behave – be the best, pride, belief, responsibility, motivation, stimulate learning culture, flexibility • HMS Raleigh – initial skills training • From couch potato to trained individual ready to fight!

9. Educational reformers must understand the needs of the sector • Inter-relationship of system have to be recognised and understood or reform will fail • Requires a shared vision • Leaders assume new roles and master new skills • Requires widespread evaluation and feedback to remain an open and viable system

10. ‘Improve motivation amongst employees’ 110% 80% - Motivated, happy 20% - Output without being motivated Bottom line x4 profit by increasing motivation Frederick Herzberg motivational theory (1983)

11. Motivation • Everyone is different • Motivated by different things • We do not know unless we ask them? • Ask – then give them the environment to perform • Output will increase without investment

13. Herzberg’s Motivators and Hygiene Factors • Sense of achievement 42% • Recognition and research 33% • Responsibility 22% • Interesting work 23% • Promotion/Advancement 14% • Feeling valued/personal growth 8% • Money not a prime motivation factor 5% • Relationship with supervisor 5% • Salary • Status • Security etc Motivators Hygiene

14. Leadership Focus on changing behaviour Lean principles (ViP) Team Leader Training YMP (Young leaders – /PDP Professional Development Plan) Management NVQs 1-4 Diplomas Degrees Leading and Managing

15. The Naval Pyramid (illustrative) Admiral Strategic, Policy, Fleet of ships Small group of ships/HOD Captain Cdr Single command 17 Ranks Administration Lt Cdr Junior Officer Vocational learning Production manager FCPO L/S in charge (6/10 people) eg guns crew LS ‘Leading’ Seaman Entry Level AB

16. Changing Behaviour – 3 case studies • ViP • Print IT! • Oxuniprint

17. What is Vision in Print? • The UK Print and Packaging Industry Forum • Established to improve: • Productivity • Competitiveness DEDICATED TO UK PRINTING COMPANIES • Need established by Print 21 report 2000 • Start-up funding from DTI 2003 • Established by the BPIF • Not-for-Profit with independent Board of Directors • Strategic Advisory Groups of Print Suppliers and Buyers • Supported by all major Print Trade Bodies • Delivers: • In-company profit improvement programmes • Best practice studies • Manages BPIF Business – bespoke consultancy service

18. Vision in Print Improvement Examples • Worked with over 250 UK Printers • Wide range of companies by size, sector and geography • Gained an average of £126,000 per programme added value in first year • Examples • Folding machine speeds increased 100% • Press speeds increased 60% • Estimating lead time reduced 65% • Press make-ready times reduced 40% • Inserting machine make-ready reduced 30% • Newspaper web-press down-time reduced 84%

19. Why companies engage in ‘Lean’ initiatives Recent Aberdeen Group study (March 2006) Key targets for a lean initiative for ‘best in class’ companies: • 66% Reduce non-value added manufacturing and supply chain costs • 38% Improve manufacturing and supply chain flexibility In other words ‘Tactical Cost Reduction’. This has been ViP’s experience of most programmes to date.

20. Typical objectives: Reduce unit cost Reduce material waste Decrease lead times Reduce production bottlenecks Streamline sales order processing Perhaps secondary benefits: Introduce continuous improvement culture Improve morale Lean to gain what? • Short term competitive advantages: • Reduced costs • Regained lost profit margins Tactical and Defensive Yet…

21. But there can be a more significant reason Long term competitive advantage • Win more business • Gain market share • Engage the whole workforce • Develop a more engaged management and workforce • Implement sustainable continuous improvement • Establish developing competitive advantage Strategic and Positive

22. Print IT!Goal: Nurture and expand UK Printing Industry • Average age of staff in printing industry 47 years • Skills “dying” with retiring staff • Low numbers entering industry from school, college or university • Printing industry not “cool” • Dirty, hazardous (chemicals), anachronistic, low pay, low-tech www.printit.org.uk

23. Objectives • To inform GCSE students about the print industry through course-based competition for 15-16 year olds • To present the positive aspects of the industry and to address some of the negative associations • To teach students about the technological advances in print and its role as part of the global communications industry and as an enabling technology for other industries • To highlight the career opportunities which exist and the training courses and qualifications available to young people • To make the print industry the first choice for a new generation of skilled employees

24. PrintIT! – The outcome • Almost 700 secondary schools participated over years 1 & 2 • Nearly 40,000 15-16 year old students “exposed” to the printing industry in its broadest sense • All finalist schools and finalist students received prizes • Extensive editorial coverage in trade press and national press exposure • Helping the print industry to become first choice for the next generation of talented young people • More than 600 schools “twinned” with printers and combined on the project

25. Case study George Thomas

26. Summary • At a tipping point • Need new leaders with a clear vision? • Behavioural change - a broad education with new competencies • We can change attitudes – proven case studies • New EGIN vision urgently needed! 3 potential projects: • Develop new learning curriculum • Roll out Lean principles across EU • Roll out PrintIT! Project across EU

27. Thank you Any questions?