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Challenges and opportunities of moving towards demand driven delivery John Churchill Enterprise Registered Training Organization Association(ERTOA)

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Page 1: Challenges and opportunities of moving towards demand ...vetinfonet.dtwd.wa.gov.au/tpf/Documents/2014 Downloads... · Challenges and opportunities of moving towards demand driven

Challenges and opportunities of moving towards

demand driven delivery

John Churchill

Enterprise Registered Training Organization Association(ERTOA)

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Moving towards demand-driven delivery

challenges and opportunities

Page 3: Challenges and opportunities of moving towards demand ...vetinfonet.dtwd.wa.gov.au/tpf/Documents/2014 Downloads... · Challenges and opportunities of moving towards demand driven

Skills for All contributed to a 46 per cent increase in vocational

education in South Australia from 2012-13.

TAFE SA and private providers reached the SA government target of

100,000 additional Skills for All enrolments three years ahead of

schedule. As of September last 2013, there were 145,800 enrolments

TAFE SA now faces massive budget cuts, course closures and

redundancies due to over delivering Skills for All funded courses

This was hailed as a good news story - targets met, etc, etc

All this activity caused a large blow-out in the state’s training budget.

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Moving towards demand-driven delivery - challenges and opportunities

Individual Government Industry Community Providers

How and when is demand identified?

Who is responsible for its identification?

What are the objectives of demand driven delivery?

What measures are used to confirm the successful achievement of those objectives?

Does demand driven delivery really represent value for money?

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The enterprise is registered as an RTO

The employees of the enterprise are the primary recipients of the training and assessment services provided by the RTO

The principal business of the enterprise is not training and development

The enterprise is a legal business entity within Australia

The enterprise RTO

The RTO is embedded as a function within the business

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4,700 Private (fee-for-service) providers

240 enterprise RTOs

60 TAFE Institutes

There are ~ 5,000 RTOs across Australia

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CORPORATE MISSION

Business Processes

& Procedures

STRATEGIC GOALS

BUSINESS OBJECTIVES

Work Level Standards

Capability Register

Position Description

Work Instructions

Policy & Procedure

Manual

External Legislation & Licensing

Training Content

& Materials

Training Programs

& Interventions

Individual & Team

Training Plans

TRAINING DELIVERY

JOB PERFORMANCE

EVALUATION OF TRAINING OUTCOMES

Feedback process

COMPETENCY ASSESSMENT

Mapping

Training Package

Competencies

Training Package

Assessment Elements

Mapping

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50.4%

22.9%

11.0%

3.8%5.1%

2.1% 1.3% 0.8% 0.0% 0.8% 0.0% 0.8% 0.0% 0.0% 0.8%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Perc

en

tag

e o

f E

RT

Os

Number of Training Packages on Scope

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0%

42%

29%

12%11%

0%0%

36% 35%

14%12%

2%

Cert I Cert II Cert III Cert IV Diploma Adv Diploma

Distribution of qualifications issued by AQF Level

- 2009 Survey

- 2011 Survey

Page 10: Challenges and opportunities of moving towards demand ...vetinfonet.dtwd.wa.gov.au/tpf/Documents/2014 Downloads... · Challenges and opportunities of moving towards demand driven

The purpose of the Certificate III qualification type is to qualify individuals

who apply a broad range of knowledge and skills in varied contexts to

undertake skilled work and as a pathway for further learning.

to undertake skilled work

a pathway for further learning

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‘We began by looking at the match between what people study and the jobs they get. Here we found that the match was pretty poor in most occupational groups—technicians and trades workers being the exception rather than the rule.’

‘the majority of graduates do not end up in the occupation which is the ‘intended’ occupation for the course.’

‘Is VET vocational? The relevance of training to the occupations of vocational education and training

graduates’ (Tom Karmel, Peter Mlotkowski and Tomi Awodeyi, NCVER, 2008)

NCVER

Table 5

Intended occupation of training activity

Employed in intended occupation

%

Managers and administrators 6.2

Professionals 17.5

Associate professionals 19.5

Tradespersons and related workers 78.9

Advanced clerical and service workers 8.2

Intermediate clerical, sales and service workers 42.9

Intermediate production and transport workers 4.9

Elementary clerical, sales and service workers 34.1

Labourers and related workers 25.1

Total 43.1

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NQC VET ASSESSMENT REPORT 2008

16% said immediately

Larger businesses with more sophisticated selection processes claim that their

expectations are more likely to be met because they have systems and processes to

review potential employees’ skill levels. That is, they place less reliance on the qualification

as a marker of skills and more emphasis on their own assessment

Some interviewees were more critical of graduates who had taken an institutional pathway

in order to obtain their qualification

Work readiness Respondents were asked how long they expected it would take someone who had

graduated with a VET qualification to be competent in a job role in their organisation, following appropriate induction and support.

21% said within 1-2 months

40% said within 3-6 month

26% said between 6-12 months

Generally employers felt that it was part of their role to support people to become

competent in their workplace and that it was unreasonable to expect that VET graduates

would be immediately competent in their workplace.

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BRANSON’S BUSINESS SCHOOL

‘Hire for ATTITUDE

Train for SKILL’

RULE #3

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Onboarding Program

PHASE 4

Active

Development

PHASE 3

Learning the essentials

for your role

PHASE 2

Getting to know

our business

PHASE 1

Getting to know

your workplace

Assessment 1 Assessment 2 Assessment 3

+ 5 months + 7 months + 9 months

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Monthly performance report

Measure Target Result

Recipe for success Achieving minimum

requirements

Achieving minimum

requirements

File audits 95% 98%

Productivity TBA 633

MO3 Costs 2683 2967

FAS TBA 58%

CTM1 60% 84%

GOS 80% 82%

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Moving towards demand-driven delivery - challenges and opportunities

How and when is demand identified?

Who is responsible for its identification?

What are the objectives of demand driven delivery?

What measures are used to confirm the successful achievement of those objectives?

Does demand driven delivery really represent value for money?

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Moving towards demand-driven delivery

challenges and opportunities

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Moving towards demand-driven delivery - challenges and opportunities

Ensure demand is real and supply is adequate

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Under Future Skills WA students will decide the course they want to study

and they will be guaranteed their training will be subsidised if:

the course has been identified as a State priority course;

a State Training Provider (formerly TAFE) or a preferred private training

provider has a training place available; and

the student meets the normal entrance requirements

The Government will not limit the number of training places they subsidise,

except where there is evidence that the number of enrolments may lead to an

oversupply of graduates.

The numbers enrolling in State priority courses will continue to be monitored.

If there is a real or potential oversupply of people with certain qualifications,

the Government may, with prior notice, stop subsidising new enrolments in

that course.

There are more than 600 training courses currently identified as State priority

courses, and 80 priority industry qualifications.

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Moving towards demand-driven delivery - challenges and opportunities

Ensure demand is real and supply is adequate

Define valid objectives and performance measures

Facilitate an ‘enterprise-directed’ funding model for training delivery

Demonstrate ‘value-for-money’ results

www.ertoa.org.au