1. Skill Ecosystems: What have we learned? Windsor & Associates © 2008 1 Skill Ecosystems: What have we learned? Presentation by Kim Windsor Windsor & Associates 2009

2. Skill Ecosystems: What have we learned? Improved living standards and economic growth can only be achieved through an increase in productivity…significant productivity gains can be made through increasing the skills base of the workforce. Australian Chamber of Commerce and Industry (2007) Skills for a Nation.

3. Skill Ecosystems: What have we learned? Windsor & Associates © 2008 3 Why develop a different approach? Skills don’t necessarily = Productivity –Skills only make a difference if they are effectively used Skills aren’t landing where they’re needed Recent statistics show: –Only 14% of employers have significant problems recruiting people –37% report employees have more skills than they require –Only 5% report employees have less skills than they require Training supplied as a business handout: bad for business, bad for individuals and bad for the economy Windsor & Associates © 2008

4. Skill Ecosystems: What have we learned? Windsor & Associates © 2008 4 Transforming skills into outcomes Windsor & Associates © 2008 Skills Productivity Good jobs The Workplace

5. Skill Ecosystems: What have we learned? Windsor & Associates © 2008 5 Ecosystems: Getting the balance right Windsor & Associates © 2008 Government regulation and policy settings VET, employment, industry development, government purchasing, taxation, trade Industry Norms, practices, ER/IR approaches Education and training Responsive delivery and link to mainstream training policy and practice Business Strategy: High skill Ecosystem Business strategy Technology Value chains HR/IR policies Management Work Organisation Workforce Development Labour Markets People with the skills and knowledge required in the appropriate locations

6. Skill Ecosystems: What have we learned? Windsor & Associates © 2008 6 A Skill Ecosystem Response Windsor & Associates © 2008 Understand context: industry, sector or regional –About shaping the environment that drives individual business responses Address both supply and demand sides of the skill equation –Address the availability or development of skill as well as its application Balance business performance outcomes with positive outcomes for individuals and communities

7. Skill Ecosystems: What have we learned? Windsor & Associates Development Flowchart

8. Skill Ecosystems: What have we learned? Windsor & Associates Some Common Themes Work reorganisation; Job redesign –Expanding labour pools –Redefining career pathways and opportunities –Negotiating new IR/ER arrangements Innovation diffusion –Linking industry with R & D –Redefining business strategies –Supplying a skilled labour pool Supplying skills to fast changing, dynamic industries

9. Skill Ecosystems: What have we learned? Windsor & Associates Readiness Indicators Success FactorsChallenges Existing networks and resources Preparedness to collaborate on shared problems See a stronger industry base can support individual business position Fragmented industry structure with little or no resource base No clear problem and/or preference to find individual solutions See other businesses as direct competition

10. Skill Ecosystems: What have we learned? Windsor & Associates © 2008 10 Windsor & Associates © 2008 Measuring Outcomes: Challenges Traditional measures focus on the individual Transactional measures tell us ‘how’ training is delivered but not ‘what’ it delivers No single stakeholder controls outcomes Outcomes occur at multiple levels

11. Skill Ecosystems: What have we learned? Windsor & Associates © 2008 11 Windsor & Associates © 2008 A Multi-factor Approach to Measurement StakeholderFocus Industry Aggregate productivity measures Training investment Capacity to plan, design and fast track targetted skill development Workplace Skills are aligned to business goals Business/service performance measures More interesting/rewarding jobs Training Providers Responsive to needs Capable of sustaining new approaches Feed into improvement of mainstream training GovernmentCoherent, whole of government policy and program alignment