Contemporary Issues Impacting SME Survival ANNE-MARIE ORROCK APRIL 2008

2. Overview�. Welcome: House keeping: Door Prize � Add Cards to Box Give Away at end of presentation Thank Colin for inviting me to speak.....as he said... Anne-Marie Orrock � BIOGRAPHY Align Expectations of Audience My style for the night is as well as delivering you some food for thought, I will also be challenging your thinking on new concepts. This is a large topic and I have a lot of information that I am squeezing down to fit the time allowable, however would like to invite sharing of ideas and experiences. We are hear to learn from each other. What are you expecting to get out of this presentation? Go around the room Go through overview.....it will address some of your expectations and will add value in areas you were not expecting. LETS START! Welcome: House keeping: Door Prize � Add Cards to Box Give Away at end of presentation Thank Colin for inviting me to speak.....as he said... Anne-Marie Orrock � BIOGRAPHY Align Expectations of Audience My style for the night is as well as delivering you some food for thought, I will also be challenging your thinking on new concepts. This is a large topic and I have a lot of information that I am squeezing down to fit the time allowable, however would like to invite sharing of ideas and experiences. We are hear to learn from each other. What are you expecting to get out of this presentation? Go around the room Go through overview.....it will address some of your expectations and will add value in areas you were not expecting. LETS START!

3. Global Trends Globalisation Speed & IP are the new currency Management practices are shifting Values changing Exit Baby Boomers...enter Gen Y Declining birth rate/ageing population DECLINING BIRTH RATE: DECLINING BIRTH RATE:

4. Globalisation The training wheels are coming off! Driven up competition & quality Driven down prices 24x7 is old hat � �any,any,any� Communicate/share exponentially Increased mobility/ breaking down boarders GLOBALISATION � THE TRAINING WHEELS ARE COMING OFF. Over the last 10 years we have been getting used to how globalisation can impact our business community. We are now realising how we can really leverage every area of life through globalisation. From ability to communicate and work across time zones, service customer s 24x7, Catch cry has become �Anything, anytime, anywhere�...no wonder Gen Y�s have great expectations...we set them up for it...but more on that later! survey has revealed Australian workers are prepared to go to almost any lengths to get the right job.According to the survey, by global recruitment firm Kelly Services, almost three in four Australian workers say they would be prepared to relocate to a different city to find work � and more than half would be willing to move overseas.The survey also found that many Australian workers are willing to devote long periods travelling to and from work, with 14% prepared to spend at least two hours a day commuting.The global survey sought the views of 115,000 people in 33 countries, including almost 19,000 in Australia, about their patterns of travel to and from work, their capacity to move to find the right job and the main factors preventing them from relocating.High degree of mobilityKelly Services country manager James Bowmer said the survey reveals a high degree of mobility in the workforce, with many people very comfortable with the idea of moving considerable distances for the right job.�With a more globalised workforce, there is increasingly a recognition that people may have to relocate to find the right work or to advance their career,� Bowmer said.�There are many skills that are easily transferable across borders including in areas such as banking and finance, IT, science and engineering.�Key findingsKey findings of the survey showed: 71% of people would consider relocating to a different city for work 55% would consider relocating to a different country for work 40% would consider relocating to a country where they didn�t fluently speak the local language 14% of people say they are prepared to spend two hours or more each day commuting to and from work 60% of people say they would like to stay living and working where they currently live until they retire. �For many workers, the chance to move to a different city or country can be a rewarding professional experience as well as a good lifestyle choice,� Bowmer said.�Employees, in general, have become much more mobile and willing to be flexible in both their travel and living arrangements to find the right job.' The survey found those workers most likely to move were aged up to 34 years. Typically, they have fewer family and other commitments that prevent them from relocating. Males were more willing to relocate than females.Family issuesWhen asked to rank the main complicating factors in moving to another country for work, the overwhelming issue was �family� (cited by 61% of respondents), followed by �language barriers� (39%), �children�s schooling� (21%), �property ownership� (16%), �tax complications� (11%), and �pension/superannuation rights� (9%).Bowmer said the finding that many workers are willing to be highly mobile in their search for work is good news for employers. �At a time of relative skills shortages, globally, targeting employees from another city or internationally can be one of the most effective ways of filling gaps in the labour market,� he said.Move awayThe survey also found that Australians are also likely to be mobile in ways not related to work. It found 40% of people say that, before they retire, they would like to move away from the place where they currently live and work. Females are keener to move than males. �This suggests that significant numbers of people will be actively looking to change their jobs, homes and lifestyles, with implications for employment, urban planning and transport infrastructure,� Bowmer said.Travelling times to and from work are a key consideration for employees and the vast majority (61%) are not willing to spend more than 45 minutes, each way, commuting. However 25% are willing to spend 45�60 minutes and 14% are willing to spend 60 minutes or more each way. Females are much less tolerant of longer travelling times than males. Q: DO YOU THINK WE WOULD HAVE REACHED THE LEVEL OF GLOBALISATION THAT WE HAVE WITHOUT THE INTERNET?GLOBALISATION � THE TRAINING WHEELS ARE COMING OFF. Over the last 10 years we have been getting used to how globalisation can impact our business community. We are now realising how we can really leverage every area of life through globalisation. From ability to communicate and work across time zones, service customer s 24x7, Catch cry has become �Anything, anytime, anywhere�...no wonder Gen Y�s have great expectations...we set them up for it...but more on that later! survey has revealed Australian workers are prepared to go to almost any lengths to get the right job.

5. Speed & IP Priced & Valued Creates greater productivity Drives up demand for: More work/projects/profit Shorter deadlines/timelines 90�s � �Greed is Good� (Gecko, Wall Str.) 00�s � �Speed is Good� (Ackmahl, comedian) Combined are powerfully Advantageous Dangerous SPEED � Speed & IP are what sets us apart as a generation from our grandparents and generations before. We have been able to advance and achieve due to our ability to increase speed and our knowledge and to put a price and value on it. My grandmother at my age could not have dreamed that it would be possible to travel across the world within 24 hours by air, with 200 other passengers, watching a colour movie, with Special Effects, with a glass of champagne!!!! � but speed and Intellectual Property enabled this to become a reality today. Great news is that our software development approaches mean that we can get ever more done than ever before, completing projects in a third of the time than previously. What does that do? It actually drives up demand enormously through companies choosing to take on more projects. We live in a society where speed and knowledge are highly valued and has created heightened expectation in performance, productivity & choice. Examples of where Combined they can be advantageous: Medical Science � Save lives Create more money � time is money! Internet a simple example � increase knowledge faster More examples?.... Q: Can anyone give examples where combined they can be powerfully dangerous? drugs & trafficking Let me give you a real scary one.........the speed at which your employees can find a job opening and leave you with your IP � powerfully dangerous! SPEED � Speed & IP are what sets us apart as a generation from our grandparents and generations before. We have been able to advance and achieve due to our ability to increase speed and our knowledge and to put a price and value on it. My grandmother at my age could not have dreamed that it would be possible to travel across the world within 24 hours by air, with 200 other passengers, watching a colour movie, with Special Effects, with a glass of champagne!!!! � but speed and Intellectual Property enabled this to become a reality today. Great news is that our software development approaches mean that we can get ever more done than ever before, completing projects in a third of the time than previously. What does that do? It actually drives up demand enormously through companies choosing to take on more projects. We live in a society where speed and knowledge are highly valued and has created heightened expectation in performance, productivity & choice. Examples of where Combined they can be advantageous: Medical Science � Save lives Create more money � time is money! Internet a simple example � increase knowledge faster More examples?.... Q: Can anyone give examples where combined they can be powerfully dangerous? drugs & trafficking Let me give you a real scary one.........the speed at which your employees can find a job opening and leave you with your IP � powerfully dangerous!

6. Management Practices MANAGEMENT PRACTICES � 1) Industrial Revolution � 1960�s Mgt by Instruction 2) 1960- 2000 � Mgt by Objectives 3) 2000 + Mgt through Values MANAGEMENT PRACTICES � 1) Industrial Revolution � 1960�s Mgt by Instruction 2) 1960- 2000 � Mgt by Objectives 3) 2000 + Mgt through Values

7. Values Values held from one generation to next can and do vary and impact organisational effectiveness. Workplace values have shifted.

8. Values Shift As a business community in 1988 these where the values held broadly through a research project by Hewitt and Associates. Who would like to chance a guess why I may have put some in Blue and some in Red and what they may represent??? And what is the single main factor that has caused this shift the business context?? YES! ENTER THE GEN Y�SAs a business community in 1988 these where the values held broadly through a research project by Hewitt and Associates. Who would like to chance a guess why I may have put some in Blue and some in Red and what they may represent??? And what is the single main factor that has caused this shift the business context?? YES! ENTER THE GEN Y�S

9. �What is happening to our young people? They talk as if they alone knew it all....� Socrates

10. Enter the Gen Y�s... Each Generation has: differing work ethics, career expectations management styles Significant change in these areas in the work place has been influenced by the entry of Gen Y into the work force. They know what they want and they want it now!

14. Gen Y�s currently make up 20% of work force.... in next 5 years their presence will double

15. Exit Boomers� In 2008 the first of Australia�s baby boomers start to retire. Peak year of boom 1947 turn 55 Government focus on budget, aged pensions & healthcare lead us to think problem is a way off 2012 - Critical date for cost of pensions - Baby Boomers turn 65

16. From 2008 onwards more Australians will leave the work force than will enter it. Due to declining birth rate over the last 20 years Gen Y taking �Gap Year� Brain Drain expats Retirement Mini boom occurring now taking women out of circulation. Exit Boomers�

17. Companies seeking stability, continuity and growth are: focusing on single industries, not diversifying positioning as a major, niche or ultra-niche for dominance pursuing unique intellectual property outsourcing non-core activities and functions employing interim external expertise to bolster IP/IC creating virtual corporations & strategic alliances Phil Ruthven 2004

18. planning from the outside-in not the inside-out emulating world best practice for their industry and, where possible, aggressively globalising their businesses stepping up & utilising HRM as a strategic part of their business developing unique organisational cultures leading first and managing second Phil Ruthven 2006

19. Local Factors � IR New Government wiping Workchoices and unifying state and federal IR laws and IR landscape nationally. Compliance Structure of employment Policy Procedures Potential hostility between employer/ees

20. Local Factors -ITC Specific School leavers applying for and taking up IT related degrees and qualifications are declining dramatically. Intake has decreased by over 50% in the last 6 years. Impact realised now � next 3 years ITC is suffering a critical image problem

21. Success Differentiators Change responsiveness Innovation Capability Productivity Quality of deliverables.

23. Skill shortages here to stay... Recruitment will remain difficult Need for scenario planning & effective Workforce Planning Values & expectations in workforce are shifting Workforce continually mobile Work is being done in a different way Exposes leadership & strategy deficiencies New IR Laws Calls for adaptability and change responsiveness

24. What is the message to SME�s? There is NO�.

25. There is NO�.

26. There is NO�.room for complacency or old attitudes!!!!!!

27. HR as a Strategic Function

28. The Way Forward Change your attitude no room for complacency or old attitudes! Time & Effort Planned focus Process driven strategy lead CHANGE YOUR ATTITUDE! GET BEYOND YOUR OWN ATTITUDE WHAT RESISTANCE COMES UP IN YOUR MIND TO STRATEGIES AVAILABLE? �Don�t have time�, �Thats too HR�y� �Don�t want older candidates � we are a young culture!� or vice versa. �We are not a big company � only big companies do that� , �We want a �relaxed� culture� WHAT IS THE EFFECT OF YOUR ATTITUDE OR LIMITING BELIEFS? WHAT IS THE EFFECT OF ONGOING VACANCIES? Reduced productivity Reduced Quality Growth Plans restricted Pressure on existing staff leads to morale problems. Play �Strip Attitude� game: Rules: Each time your little negative friend comes up with an objection, negative attitude or �I know this� you must take off a piece of clothing. Write it down on a piece of paper. Are you exposed? Are you exposing your business to complacency.CHANGE YOUR ATTITUDE! GET BEYOND YOUR OWN ATTITUDE WHAT RESISTANCE COMES UP IN YOUR MIND TO STRATEGIES AVAILABLE? �Don�t have time�, �Thats too HR�y� �Don�t want older candidates � we are a young culture!� or vice versa. �We are not a big company � only big companies do that� , �We want a �relaxed� culture� WHAT IS THE EFFECT OF YOUR ATTITUDE OR LIMITING BELIEFS? WHAT IS THE EFFECT OF ONGOING VACANCIES? Reduced productivity Reduced Quality Growth Plans restricted Pressure on existing staff leads to morale problems. Play �Strip Attitude� game: Rules: Each time your little negative friend comes up with an objection, negative attitude or �I know this� you must take off a piece of clothing. Write it down on a piece of paper. Are you exposed? Are you exposing your business to complacency.

29. HR an investment or overhead?

30. The HR Lifecycle

31. Attraction Strategy

32. Define Job Roles Determine: critical tasks and then the related tasks. outcomes expected from those tasks. Know exactly what skills/competencies and experience you need to ensure that those job tasks are undertaken to the maximum quality level.

33. Develop Solid Job Descriptions Define and rank task importance Allocate percentages and weight with in the role. Link each task or area of responsibility to the strategic goals and outcomes of the organisation. Include behaviours and attitude expected in undertaking the role that reflect your company values.

34. Average company only uses 2-4 channels to source candidates. SEEK Staff referrals/internal Recruitment agency Website Candidates use 5-7 channels to find jobs Best companies use 7-10+

35. Expand Sources of Candidates Industry Associations: provide free job services and free postings. Get an editorial in your industry association newsletter about the growth of your company and how you are looking for quality staff. Talk about the culture of your organisation and make it attractive to readers to join. Educational Institutions University Job Boards/Alumni groups Grad Link TAFE Employers Job Service Donate an Award/scholarship

36. Leverage your Partnerships and Alliances. Enter into an exchange program or secondment to develop skills and bring in fresh sources of network capability. Associated industries/businesses Cast net wider Look for talent that can move sideways Your company website: Review and update your site. Include a succession chart and ask for applicants for that role to �park� in a future position.

37. Expand Sources for Candidates Develop an incentive plan for staff to professionally network and build a pipeline. Advertise on specialist recruitment sites. Recruitment Referrals Link Me Linked In Virtual Careers Expo

38. Recruitment Referrals website

39. Link Me website

40. Virtual Careers Expo.

41. Virtual Careers Expo � sales force eg.

42. Virtual Careers Expo � sales force eg.

44. Develop an EVP What is an EVP? More than a list of benefits Promise �P,P,P� (price, positioning, product) Selling the employment experience Values, Culture, Rewards, Emotional experience Foundation of employer branding strategy

45. Customware EVP

47. Atlassian Careers Page

48. Tonkin Careers Page

49. Freshview Software � Careers Page

50. Your website CEO/MD blog. company the culture Recent achievements Candidates want to know who is steering the ship and understand the kind of person you are. List awards prominent place in your site as well as your careers page. Explain what the awards mean.

51. Blog - Atlassian

52. Aconex - Awards

53. Aconex � Awards (cont)

54. Aconex � Awards (cont)

56. Awards � EDI

59. What distinguishes Best Employers from others? Have highly committed leaders who actually believe, and are passionate about, the rhetoric of employees being their most important asset; Create a compelling employment experience for their employees, being clear about what they stand for and delivering on that promise to their people; Connect their people with the organisational strategy; Inspire and maintain a passion for outstanding achievement among their people, and in doing so, create a differentiated high� performance culture; Align their people practices with business objectives. Hewitt Assoc. Study 2006

60. �It is not the big that beat the small....it is the fast that beat the slow�...

61. Thank you! Anne-Marie Orrock Corporate Canary HR Consulting www.corporatecanary.com.au