John Cairns - Sydney Trains - Differentiating means from ends: Workforce planning and workplace...

1 Commercial in Confidence

John Cairns

Future of Industrial Relations Conference

October, 2014

Differentiating means from ends: Workforce

Planning and Workplace Relations.


What we will cover

Introductory Remarks

Three key considerations

Use workforce planning to take a holistic approach to workplace

relations

Direct attention to the hearts and minds – this IS the role of

management

Consider the approach to bargaining

Concluding remarks


A range of challenges requires a range of solutions

Increasingly complex labour market challenges require a broad range of approaches to workforce management

In 2006, the Victorian Government developed a holistic approach to address such challenges

Such multi-faceted approaches have a number of workplace relations considerations

These broad considerations are relevant as either ïnterests” or “fault lines”.

Developed by the State Services Authority of Victoria


Increasing role of attraction and recruitment strategies

Drivers:

Increasing skill shortages.

Increasing private sector

competition.

Increasing competition

by other states and

countries.

4

Potential directions:

Employment branding strategies.

Reviewing recruitment approaches.

Identifying areas of competitive advantages of public sector employment.

Interests/Fault lines:

External vs Internal selection

Internal wage relativities

Fit for purpose flexibility

Intergenerational difference

Restrictive recruitment rules


Growing labour supply

Drivers:

Decrease in entry to skills development infrastructure (ex courses).

Responsiveness of universities to government employment needs.

Effect of funding arrangements for university training.

Stewardship role in market.

Inflexibility in matching qualification to task

5


Increasing attractiveness of study for selected courses.

Influence university ciriculum to meet needs of Government.

Redesign roles to increase supply from alternative sources.

Develop policy for skilled migration.

Increase voluntarism models.

Developing partnering models


Formal assessment and recognition of skills

Access to overseas skills where in shortage

Improved efforts in co-creation

Demarcations –organisational and functional

Alternative ownership models – PPP’s - skills


Investing in development

Drivers:

Developing staff to meet retirement gaps.

Shifts in build/buy proposition.

Changing skill sets.

Increased demand and complexity of public service.

Loss of corporate and tacit knowledge

6


Return on investment from L&D.

Succession planning.

Developing a knowledge management approach.

Developing common supporting infrastructure.

Creating room for learning.


Streamline training and skills recognition

Targetted vs generalised development

Mutual responsibility to train and learn


Increasing agility in public sector employment

Drivers:

Restrictions in staffing numbers.

Uniform salary arrangements.

Staff movement rigidity.

Increasing use of diffused funding and delivery models.

7


Review staffing and salary caps.

Reviewing salary levels.

Review salary structures.

Developing adaptive capacity to manage redundant skill and knowledge.

Better managing contracting resources.


Pay flexibility for shortage –internal and external relativities

Role of Performance Pay

Flexibility in TCR arrangements

Management of poor performance

Capacity to utilise flexible forms of work


Improving participation, retention and motivation

Drivers:

Expected retirement of experienced public sector staff.

Increasing age of public sector workforce generally.

Increasing separations resulting from tightness of market.

8


Removing barriers and disincentives to increased participation.

Promoting work-life balance and flexible work practices.

Promoting better health outcomes.


Accountability for management behaviour –ex bullying

Win-win flexibility

Fitness, readiness and privacy

Commitment to corporate goals


Improving workforce planning capability and governance

Drivers:

Increasing significance of labour constraint making workforce issues a strategic issue.

Increased emphasis on demand management.

Increased system wide perspective required.

Increasing data requirements.

Increasing skill required to manage the issues.

9


Improve link between policy setting and workforce planning.

Improve link between departments and agencies.

Improve methods, process and procedures to support workforce planning.

Improve workforce projection capability.

Improve workforce planning capability.


Containment vs Engagement


The dynamics of change are difficult

Public

ownership

Amendable

Management

Powerful

unions

• Vince Graham commentary in Australian –

20/8/14 – very instructive

• Reflects on three powerful forces that makes

change difficult in a public sector setting:

• Public Ownership• Amendable managers• Powerful unions

• Directs itself to the things that need to be

managed


Lead the difference

We display leadership in all that we

do

Make a difference

We achieveour goals

consistently

We live our values

through our behaviors

Prepared to make a difference

We actively participate in the planning and execution of work

We exercise all our skills and demonstrate our

expertiseStrategies:

• Employees are aware of the

importance, opportunity and

expectations of working for

Sydney and NSW Trains• Driving greater focus and

mutual responsibility on

employee wellbeing especially

high risk areas• Health and presentation

standards are met

Strategies:

• Ensure all staff have the

relevant competences to do all

work as directed within their

skills and training without

regard to demarcation or other

barriers• Accountabilities are clear and

policies and processes enable a

productive work environment

Strategies:

•Promote pride in being part of the Rail Team•Instilling universal cultural signals and developing understanding within individuals regarding their specific

role in the journey•Behaviours consistent with Sydney and NSW Trains’ values demonstrated

Strategies:

• Business objectives

cascaded through an

aligned planning, goal

setting and PDP process• Fostering an environment

where performance

discussions and feedback

are encouraged, required

and welcomed• All staff have individual

performance goals and are

held to account with known

positive and negative

consequences

Strategies:

• Leadership skill and

aspirations improved at

every level• Sound identification and

development programs to

secure, encourage and

retain high performing

leadership talent• Thought leadership,

innovation and

implementation of new

ideas encouraged and

proactively supported.

The Change Agenda – Cultural underpinnings – how we work

Sydney Trains – A case study in cultural

transformation


Sydney Trains change journey – much of it done in strong industrial

climate

Measuring and

managing culture

Establish Accountability & Performance Planning

Launch & Communicate SPACE

Skills/Talent governance

Absence Control

VSP and Attrition

Re-fresh Capability

Foundation

Work

Pe

rfo

rma

nc

e a

nd

S

kil

lC

ulture

Jan 12 July 2013 Now

Work design changes – ex Depot consolidation

Enterprise Bargain changes

Work

Environ

ment

Launch of

Sydney Trains

Embed momentum

–” the plan”


A well thought through industrial strategy was essential

• Strategic implementation of programs

• Rigorous observance of consultation

arrangements

• No surprises for unions – strategic information

sharing

• Direct communications with staff – never stop

talking

• Improve management accountability

• Responding to flare ups quickly and decisively


But the key is management actively seeking to win the hearts and minds of employees

Public

ownership

Amenable

Management

Powerful

unions

•Vision: clarity and consistency of vision

•Communication Style: One way communication vs two

way engagement

•Accountability of management – Ensuring managers

lead from the front

•Clarity and consistency of behaviors: - articulating and

living the values and behaviors

•Hygiene: Dealing with the elephants in the room

•Welfare: management to understand this is the

responsibility of management


ValuesSafety is at the heart of all

we do; all injuries are preventable

Communicating openly; working effectively together;

sharing ideas and perspectives

Owning our actions; making bold and pragmatic

decisions

Taking pride in our role and in our personal presentation; recognising our value at

work

Striving for excellence; exceeding all expectations;

focusing on the best end result

Strategic

Objectives

Improve customer

experience with rail transport services

Trains on timeImplement

efficiencies across the business

Grow patronage on

public transport

Create and foster

an environment that improves safety

Reform delivery of

rail services

Improve Asset

Reliability

Create an effective

and accountable culture

Drive productivity

and efficient

Create change and resilience

Vision

Our vision is to keep Sydney moving by delivering safe, customer-focused, reliable and clean rail services.

We contribute to the success of transport in NSW by running effective and efficient rail services which exceed our customers’ expectations,

support growth and contribute to the broader community and the economy.

Strategic

ThemesCustomer &

AccessibilityTravel Business Environment Safety Asset People

ExcellenceBehaviours Safety Pride Accountability Collaboration

Vision and clarity of message: Strategy on one page


The role of engagement vs communication can not be under estimated

Hard systems (head/functions)vs

soft systems (heart/people)

Soft Systems Thinking – use of

Processes for Organisation

Meaning (POM) can help

It describes the interrelationship

between discourse, meaning,

action and different ways

participants view things based on

history, culture and expectations


Our first stake in the sand: Performance and Accountability Framework to make explicit

authorities, accountabilities and consequences

Business Performance

Objectives (informed by

RSC)

Business Values (TBC)

Driving achievement through

clear specification of objectives

and KPI’s

Driving culture through the right

behaviours of all based on our

vision and values.

Clarifying authority and

responsibility through the

development of level

performance standards

Identifying and developing talent

to promote succession planning

Disciplined

and aligned

performance

system


Being Accountably for WHAT we do

• At the core of our business planning are the promises we make to each other – this is not just compliance

• Strong alignment to business planning approach

• Differentiate between critical objectives and specific objectives

• Critical objectives to be SMART and specific objectives to be milestone driven

• Initial focus on first round recording of objectives and their assessment

• Focus of attention moving forward– Developing SMART objectives– Making and receiving

promises


Clarity and consistency of behaviours

• How we do things is as important as what we do – Clarity of our expectations– Credibility and trust– A means to call good and bad behaviour– Dealing with the urgent and the important– S.P.A.C.E common sense approach based

on focus group work in the organisation

• Differentiate between three levels of employees – the behaviours are ubiquitous, they way they will manifest themselves will be different

• Already used as part of recruitment as part of PD’s and recruitment process

• Performance process in the initial instance will involve:

– Developing specific commitments of what will be done to demonstrate behaviours

– Manager employee assessment and weighting

– Pulsing to organisation on these behaviours

Safety

Pride

Accountability

Collaboration

Excellence


Further workshops and interviews aided articulation of specific supportive behaviours

of each level (3 of 3)


Organisation Welfare: Dealing with the personal impact of change

Change and wellbeing

ttraditionally seen as mutually

exclusive

Change can positively or

negatively impact on employee

wellbeing through increases

morale, distress and relative job

satisfaction

Wellbeing is affected by a

combination of personal

characteristics, organizational

climate and specific work

experiences

Cotton P and Hart P, Occupational Wellbeing and Performance: A review of organisational Health Research, 38(2003) Aust. Pyscologist 118


Hygiene factors - The elephants in the room

Need to address squarely those things that are barriers to great performance

These are important signalling activities

In Sydney Trains:

Absence Management

Performance Management

Middle Management resistance

Senior Management Capability

Industrially this required:

Clarity of intent and follow through

Respect for rights while maintaining momentum

Pragmatic implementation without compromising objectives


Collective bargaining styles

Will avoid the inclusion/exclusion debate

While recognising legitimate interests – there is still an important trade off to be considered

Distributive bargaining remains predominant –especially in traditional industries

Opportunities to advance in 1980’s have diminished –from employer and union perspectives

The productivity agenda may see a focus in this areas re-emerge –especially where unions retain significant influence

Containment

Engagem

ent

Interest based bargaining

• Bargaining style: interest based (win/win)• Relationships: High trust/open exchange• Domain of discussions: vulnerabilities• Logic of discussion: Building platform for change

Distributive Bargaining

• Bargaining style: zero sum negotiation (win/loose)• Relationships: Low trust/positional• Domain of discussions: Strengths• Logic of discussion: Rules/entitlements

Government

Passive

Management

Powerful

unions


Queensland Health Nurses – a case in point

What was the enabler

2002 failure of negotiations – major conflict and unsatisfactory outcome. Parties dissatisfied with status quo

Union conflicted by impact of industrial action on ”professional identity”

QH politics of shooting bambi and major systemic issues around retention of staff and shortage of health resources

Union and nurses generally too “powerful’ to be ignored

Strong feeling of a higher shared purpose – commitment to health care

How were the discussions different Much more lengthy discussions about interests – very time consuming but

far more productive discussion – exploring/expanding issues rather than narrowing issues

Much more emphasis on joint work – “joint initiatives of high mutual value”– the scope of bargaining significantly expanded

Quality of outcomes better but requires intensive investment


Queensland Health Nurses – a case in point

Challenges

Confronts prevailing operating models

For unions – requires strong leadership:

inconsistent with conflict model

Inconsistent with organizing/representative model

For employer –

Requires high level of trust and information sharing

Requires investment of significant time and

resources

Stakeholders can confuse trust for being soft


Concluding remarks

The realities of the labour market require a holistic

perspective on managing industrial environments in

the public sector

In a number of industrialised public sector

organisations such as rail, considerable change is

being prosecuted in a highly organized industrial

environment

The role of managers to win the hearts and minds of

employees is crucial to this

While most organisations find themselves in a

distributive industrial environment, there may be

opportunities to explore other models to accelerate

change


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John Cairns - Sydney Trains - Differentiating means from ends: Workforce planning and workplace...

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