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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

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Contemporary issues for organisational survival l.jpg

Contemporary Issues for Organisational Survival

CPA Public Sector Accountants Group (Vic)

Presented by Wendy Lundgaard, Director

February 2007


Overview l.jpg
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)


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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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Not Assets

Not Brand

Not Reputation

Change responsiveness

Innovation

Capability

Productivity

Quality of deliverables.

Success Differentiator


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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’.


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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 (PPP’s) 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



Hr strategy employee engagement l.jpg
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? Ratio’s, 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 @ 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

  • “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.




For more visit win winws com au l.jpg

For more visit: win-winws.com.au

Presenter: Wendy Lundgaard, Director

February 2007


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