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ACE and workforce development in small and medium enterprises John McIntyre ALA Research Fellow www.jamc.com.au. Enterprising ACE. Download report at ALA site or jamc.com.au. ALA’s research brief.
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ACE and workforce development in small and medium enterprises John McIntyre ALA Research Fellow www.jamc.com.au Enterprising ACE 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’)
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)
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
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 3% of total hours 2% of total hours 1% of total hours
Source:NCVER, Australian VET Provider Collection 2010, Students and courses 2010 - publicly funded training providers