Enterprising ACE ACE and workforce development in small and medium enterprises John McIntyre ALA Research Fellow www.jamc.com.au Download report at ALA site or jamc.com.au

ALA’s research brief How are ACE organisations connecting with SMEs and their workforce skill development needs? How do ACE organisations perceive this kind of business development in relation to their overall philosophy and strategy.

Framework Context and demographic. How do ACE providers understand the local market for their services? Capability. How have ACE providers developed a capacity to meet the skill development needs of SMEs? Customisation. To what extent are ACE providers customising ‘on-demand’ training for SMEs? Client relationships. How do providers build relationships with SMEs compared to other clients? Commercial intelligence. What sources of information are important in developing capability? ACE as business organisations. How do ACE organisations see themselves as small businesses and as social enterprises? How does this influence their work with SMEs?

Research issues What drives ACE organisations to innovate, create new services and reach new clients? What are policy and funding pressures are causing ACE organisations to diversify and innovate? Where is the VET agenda taking ACE? Is this bad or good for organisations? Is it limiting or expanding their social and economic contribution? Now workforce development is the new focus for the VET system, how is ACE positioned to assist with this in SMEs? Why is working with small business the untold ACE story—a hidden contribution?

A hidden contribution? Perception of ACE: bridging and pathway development is uppermost—Bowman identifies five other functions including ‘work skills development’ Sector advocacy emphasises personal and social benefits such as community building, rather than economic outcomes e.g. Allen Consulting 2008 National policy gives no priority to a small business development role for ACE e.g. in the Ministerial Declaration and the ‘VET Roadmap’)

ACE Outcomes (Clemans et al)

Six case studies Aimed to select cases from different States, look for lesser known organisations working with SMEs. Camden Haven Adult and Community Education (NSW) Griffith Adult Learning Association (NSW) Tamworth Community College (NSW) Southern Grampians Adult Education (Victoria) Meadow Heights Learning Shop (Victoria) Caboolture Adult Literacy Group (Queensland)

Tamworth Community College (NSW)

Griffith Adult Learning Association (NSW)

Camden Haven Community College (NSW)

Camden Haven Community College (NSW)

Meadow Heights Learning Shop Inc (Vic)

Factors in success A high strategic priority to engage with local business through strong networks and linkages Build quality reputation through rigour and participant-centred systems Focus on sustainability achieved by diversified funding sources and good business systems Focus on capacity-building to reach new clients through partnership and networked delivery models. Engage in adaptive business development to take ‘niche market’ opportunities opened up by a maturing training system — ‘strategic adaptation’

Conscious capacity-building Quality: building credibility as a provider of first resort Client focus: Delivering training that is client-focused in every respect in (content, venue, mode, cost-effectiveness and quality) Embedding and promoting the organisation in local business networks Retaining quality staff who can assure the quality of design, delivery and assessment of training Making the adult learning experience central in developing educational services

Strategic adaptation Sustainability. The business imperative to diversify, develop as a quality provider of educational services. Community needs. There is a broad view taken of education and training needs of the community Strategic innovation. The capacity to deliver is carefully developed so that the organisation does not overreach itself. Partnership and collaboration. Embedding the organisation through strategic networking, building capability through partnerships and consortia

Implications: Ministerial Declaration Strategically position ACE to deliver vocationally focused courses Remove policy and other obstacles to ACE fulfilling its vocational role Develop pathways and bridging through partnership and auspicing Optimise capacity to deliver …. Promote best practice among ACE providers, share resources and examine flexible learning options Extend participation … Increase participation by socially excluded groups Strengthen the delivery of services—career, employment and skills assessment. Demonstrate quality … Leverage the research base to improve policy and practice eg. barriers to access, issues in service delivery

Recommendations Further research investigate organisational innovation in enterprising ACE organisations, its extent and character Further analysis of the factors that build capability in ACE organisations, especially those associated with qualities of adaptivity and enterprise Greater advocacy ACE’s role in local workforce skills development and its contribution to economic outcomes

Data footnote—ACE in VET New provider level data clearly shows ACE’s role in national publicly funded VET 23 large ACE organisations in the largest 200 providers the ‘top fifty’ ACE providers include innovative orgs TAFE Institutes dominate (66 organisations deliver 80% of all hours)—then a very ‘long tail’ of all other RTOs operating in niche markets ACE is favoured by the emphasis on adult learning in the new ‘workforce development’ agenda Skills for Prosperity (VET roadmap) recommends inclusion of ACE in national funding agreements

ACE in VET perspective 79% of total hours 11% of total hours

Source:NCVER, Australian VET Provider Collection 2010, Students and courses 2010 - publicly funded training providers

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