TAFE Making choices
-1-
Onscreen - white - small room.ppt
Gerhard Vorster
Deloitte
3 September 2009

Where do we start from?

VET overview

How to manage value

Choices

Applying choices

Get on with it
-2-
Onscreen - white - small room.ppt
Agenda
Where do we start from?
http://www.youtube.com/watch?v=rAaWvVFERVA

The Spotlight has been on the tertiary education sector

Australian VET an international leader in establishing industry-wide
training standards and qualifications

Bradley Review a vision for a broader, more dynamic and integrated
tertiary education sector, under Commonwealth jurisdiction

Economic constraints and the funding gap

Roadmap towards a national TAFE system is uncertain

In this environment, standing still is not an option

While there is no ‘one size fits all’ formula for success, there are
common issues and opportunities in operation across the sector

The strategic debate requires much wider consideration.
-4-
Onscreen - white - small room.ppt
VET overview
The Bradley review signals a towards a more competitive and dynamic tertiary
education sector, increasingly exposed to market and economic forces…
Revenue trends
Increased competition
• Aging workforce and war for talent
• Funding volatility and uncertainty
• Diversification of student market
• Skill demands
• Long term under-investment
• De-regulation of student funding
• Increasing student-staff ratio
• Constrained govt spending
• Private and international providers
• Improved short term domestic
demand
• Economies of scale & specialisation
Policy directions
• Tension between government
regulation and market freedom
• Bradley response – Commonwealth
jurisdiction? Unified tertiary model?
• Diversification and differentiation
Engagement & impact
Australian
TAFE
• Collaboration imperative with private
sector, Universities and communities
• Promoting access & regional delivery
• Increased participation through
enhanced pathways
Market diversification
• Basic training vs workplace
innovation roles
Organisational
efficiency
Technology &
information
• Rise in self-employed and microbusiness sector
• Rise of administrative & capital
costs
• Web 2.0 challenge; user generated
content, open networks
• Lifelong, work integrated learning
• Support capabilities
• E-learning development
• Baby boomer re-training
• Change readiness / business agility
• Asia-Pacific industrialisation
• Professional staff skills
• Rising competitive importance of
ICT
-5-
• Increasing information management
/ reporting requirements
Onscreen - white - small room.ppt
Workforce change
How to manage value
Value Improvement
Levers and Action Items
Value Drivers
VET Value
Funding &
Revenue Growth
Operating Margin
Asset Efficiency
Performance &
Capabilities
 Academic programs;
funding levels; revenue
diversification
 Marketing, general &
administrative costs;
cost of program
delivery; tax
 Human capital;
intellectual property &
assets; property, plant
& equipment;
receivables &
payables
 Institutional strengths;
external impact; quality
outcomes
 Program focus and
alignment
 Shared services &
operational excellence
 Talent management
 Governance
 Student experience
 Outsourcing
 Planning, budgeting &
forecasting
 Program portfolio
 Procurement
 Information
management and data
analytics
 Innovation &
commercialisation
 Diversified delivery
 Campus and asset
models &
management
 Program & project
mgmt
 Change management &
agility
 Strategic partnerships
Choices
Funding

Quality

Access ability

Capability

Operating model
Strategic choices
-7-
Onscreen - white - small room.ppt

So will it be done by you or to you?

Outsourcing the responsibility for own future is a strategic choice

If the decision is not to do so, the dynamics of strategy have changed
quite significantly
Plan
Organise
Control
Anticipate
Formulate
Operate
Accumulate
-8-
Onscreen - white - small room.ppt
To
What are these strategic choices?
External choices
(Where to compete)
Strategy
Internal choices
-9-
Onscreen - white - small room.ppt
(Resource allocation)
Institutes will need to enhance their capability to making the right strategic choices
about where to compete and how to ensure alignment and performance against the
strategy
TAFE Value Pipeline
Today
Tomorrow
Granular Market &
Portfolio Selection
Future
Policy Priorities &
Market Opportunities
External
Strategy
Choices
Granular
performance
management
Innovation
System
- 10 -
Onscreen - white - small room.ppt
Internal
Scale-up
capability
Institutes will need to enhance their capability to making the right strategic choices
about where to compete and how to ensure alignment and performance against the
strategy
TAFE Value Pipeline
Today
External
Strategy
Choices
Tomorrow
Future
Granular Market
& Portfolio
Selection
Policy Priorities &
Market
Opportunities
Consolidation
Scale-up
capability
Fill-in
Exploratory
Options
Internal
Granular
performance
management
Innovation
System
- 11 -
Onscreen - white - small room.ppt
Exit & Divestment
- 12 -
Onscreen - white - small room.ppt
VET sector impact and capability diagnostic
- 13 -
Onscreen - white - small room.ppt
VET sector impact and capability diagnostic
- 14 -
Onscreen - white - small room.ppt
VET sector impact and capability diagnostic
- 15 -
Onscreen - white - small room.ppt
VET sector impact and capability diagnostic
Get on with it …

It is granular in nature

It is based on sober optimism

It understands the “profitable core” concept

It logically translates into tactics

It is done with a huge sense of urgency
- 16 -
Onscreen - white - small room.ppt
Strategy in volatile times
is about superior tactics,
superior implementation
and superior people
…but these choices have to be made and implemented by people
Personal responsibility
- 17 -
Onscreen - white - small room.ppt
Deny, defend, justify,
alibi, blame, rationalise
Fundamental capabilities of strategy in volatile times

Teamwork and partnerships – collective action within and across the
value chain

Active anticipation

Innovation in processes, products and services and business models

A combination of organic and non-organic options

Explore and exploit simultaneously

“Mistakes are feedback from the gods” - do, learn, do.
- 18 -
Onscreen - white - small room.ppt
Management has to be the organisational
shock absorber during the bumpy ride.
….and with the knowledge that Black Swans will be the norm
- 19 -
Onscreen - white - small room.ppt
Preparedness
over
prediction
“How you cling to your purity, young man! How
afraid are you to soil your hands! All right, stay
pure! What good will it do? Why did you join us?
Purity it an idea for a yogi or a monk…To do
nothing, to remain motionless, arms at your side,
wearing kid gloves. Well, I have dirty hands. Right
up to the elbows. I’ve plunged them in filth and
blood. But what do you hope? Do you think you
can govern innocently?”
– Jean Paul Sartre
Note:
Source:
Discussion
About Deloitte
‘Deloitte’ refers to the Australian partnership of Deloitte Touche Tohmatsu and its subsidiaries. Deloitte, one of Australia’s leading professional
services firms, provides audit, tax, consulting, and financial advisory services through over 4000 people across the country. Focused on the
creation of value and growth, and known as an employer of choice for innovative human resources programs, we are dedicated to helping our
clients and our people excel. For more information, please visit Deloitte’s web site at www.deloitte.com.au.
Deloitte is a member of Deloitte Touche Tohmatsu (a Swiss Verein). As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor
any of its member firms has any liability for each other’s acts or omissions. Each of the member firms is a separate and independent legal entity
operating under the names “Deloitte,” “Deloitte & Touche,” “Deloitte Touche Tohmatsu,” or other, related names. Services are provided by the
member firms or their subsidiaries and affiliates and not by the Deloitte Touche Tohmatsu Verein.
Copyright © 2008 Deloitte All rights reserved.