acci productivity leadership forum productivity leadership
TRANSCRIPT
ACCI Productivity Leadership Forum
Productivity Leadership
Robin ShreeveCEOAustralian Workforce and Productivity Agency
12 June 2013
Productivity and enterprises
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The decisions made by individual firms in the Australian economy, and the interactions between them, will be a key driver of future productivity growth.Governments influence the environment in which firms engage with each other and make investment and production decisions. They set the rules of the game, if you like, and affect the incentives that firms face, and their flexibility to respond.
Source: David Gruen and Ben Dolman - Treasury
Insight from Jack Welch
“The best companies now know that real and limitless productivity comes from challenged, empowered, excited and rewarded teams of people ... and from making everyone play a role in the success of the enterprise ... this raises productivity not incrementally, but by multiples”
Jack Welch, Former Chairman and CEO of General Electric
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• Exchange rate fluctuation from 85c to $1.05 increasing export prices
Challenge
• Management set a target to reduce the price of each vehicle to offset exchange rate changes
Goal
• Tailored Cert III for staff
• Entire workforce collaborated together
Solution
• Over 12 months, the price of each truck has reduced by $10k due to improved work processes
Outcome
Example: Kenworth Trucks
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IIPUK/IIPST-Module 1/Slides/V2/2008© Copyright Investors in People UK 2008
Effective Leadership & Management
• Clarity of direction
• Effective HRM systems and processes
• Well defined roles and responsibilities (Skills, Knowledge
& Behaviours)
• Consistent delivery against these requirements
(i.e. “what good looks like” for managers)
IIPUK/IIPST-Module 1/Slides/V2/2008© Copyright Investors in People UK 2008
Effective Leadership & Management
• Clarity of direction
• Effective HRM systems and processes
• Well defined roles and responsibilities (Skills, Knowledge
& Behaviours)
• Consistent delivery against these requirements
(i.e. “what good looks like” for managers)
A top down approach
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Board level
Executive:CEO, CFO, CIO, COO, HR Director etc.
Managers Managers Managers
How can enterprises boost productivity?
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AutonomySupportive management
Skills utilisation
Training to support
productivity
Security of employment
Job satisfaction
FlexibilityMotivation
Working environment
Work‐life balance
What is skills utilisation?
Those policies and practices which support people to participate effectively in the workforce and to develop and apply skills in a workplace context where learning translates into positive outcomes for enterprises, the wider community and for individuals throughout their working lives.
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The key message
Skills utilisation is about how well employers harness and develop their workers’ abilities and talents to gain maximum value and thus improve the organisation’s productivity.
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How is skills utilisation delivered?
Job redesign Employee participation Autonomy
Job rotation Skills audits Knowledge transfer
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What triggers skills utilisation?
External: other factors
Product market
competition
Economic conditions
Regulatory requirements
External: labour market factors
Recruitment & skills shortages
Retention
Internal factorsGrowth & innovation Leadership Reduce wastage
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What critical success factors enable skillsutilisation?
Leadership & management
Culture & values
Employee motivation
Consultation communication, & collaboration
Good HR practices
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What are the outcomes of skills utilisation?
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• Improved job satisfaction• Improved innovation• Increased competitive advantage• Increased productivity
• Reduced staff turnover• Reduced waste
Skills utilisation strategies used by organisations
acQuire• Employee participation and autonomy
The Chia Co• Applying new learning
CSL Australia• Job rotation and multi‐skilling
Dexion• Skill audits and applying new learning
GHD• Mentoring and employee participation
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Skills utilisation strategies used by organisations
Holden• Job rotation and multi‐skilling
Leighton Contractors• Skill audits and multi‐skilling
Murrumbidgee LHD• Job redesign
Pottinger• Autonomy and mentoring
RSPCA• Applying new learning and job redesign
Woodside• Applying new learning and job rotation
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Discussion questions
What are some concerns that prompted or may prompt your organisation to adopt utilisation practices?
What are some skills utilisation practices your organisation has adopted?
How effective are they? What makes them work?