1. 1 Voice Project Presentation June 2015 1.About MTC 2.Why did we need to change? 3.How did we go about changing? 4.What happened? 5.What did we learn? MTC Employment Services Transformation

2. 1.About MTCMTC

5. Delivered Employment Services since Commonwealth Government commenced outsourcing May 1998 We help unemployed people find and keep a job Sydney based Contracts are performance based (“Star Ratings”) Contracts are highly complex and prescriptive Employment Services Division

6. 2.Why did we need to change? Poor culture and morale – a bad place to work Poor and declining Financial Performance Poor and declining Operational Performance (Star Ratings) At Risk of losing part of contract in mid 2013 At Risk of losing entire contract in mid 2015

7. Step 1: 1 st Voice Project Survey conducted January 2013 Deep distrust of Divisional Leadership Leadership “Telling” not Coaching Bullying “In groups” and “out groups” Change Management Strategy based on hierarchy and fear Step 2: Conducted deeper assessment (psychologist) Findings confirmed Step 3: “Regime Change” Voice Project Survey

8. 3.How did we go about changing? Leadership Formal Change Project Management Narrative (Purpose & Values) Rebuild the culture and restore trust Establish Management System (ISO 9001) Performance Management System, including incentives

9. New Divisional Leadership Rebadged as “Support Team” Their Mission = “Remove barriers to performance” “Regional Managers” rebadged as “Regional Coaches” Established formal Plan = “Transformation Project” Appointed Project Manager LEADERSHIP & PROJECT MANAGMENT

10. Narrative based on Values Working for a Charity ≠ Compassion Compassion (a Verb) = What have YOU done today to help someone find and maintain employment? We need to improve or we will not get new contract! Rights, Obligations & Consequences “A problem is an Opportunity to improve” Generally new concepts for most staff! Half moved (or were moved) on NARRATIVE

11. ISO 9001 MANAGEMENT SYSTEM Legislation Management System on Intranet Policies Procedures Forms Guides Internal Audit Management Review Training Contract Strategy Continual Improvement

12. We don’t want ‘the nearest correct entry’

13. PERFORMANCE MANAGEMENT SYSTEM Agree expectations (Position Descriptions and KPIs) Extensive Training Measure performance 1:1 monthly for ALL Staff Performance Management Scaffolding Performance Improvement Plans If unsuccessful, termination

14. 4.What happened? Measure20132014 Overall change+14% Engagement Driver with greatest change (Leadership Team) +34% Voluntary Employee Turnover21%30% Absenteeism1.9 Safety6 Claims1 Claim Productivity (Revenue per FTE)$113K$132K Customer Satisfaction Financial Performance Operations (Star Ratings) …and we won a new contract for 5 years, commencing next month!

15. 5.What did we learn? If Voice Project says things are bad, investigate why Make HR part of the Team Focus on training and helping, not telling If a staff member can’t make it, be fair and try a new job or move them on If you tolerate poor performance and behaviour, good and great performers will be demotivated Winning isn’t everything, but losing isn’t anything!