1Voice Project Presentation June 2015

1. About MTC2. 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

1. About MTC

• 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

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

Step 1: 1st 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

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

• 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

• 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

ISO 9001 MANAGEMENT SYSTEM

Legislation

Management System on Intranet

• Policies• Procedures• Forms • Guides

Internal Audit

Management Review

Training

Contract

Strategy

Continual Improvement

We don’t want ‘the nearest correct entry’

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

4. What happened?Measure 2013 2014

Overall change +14%

Engagement Driver with greatest change (Leadership Team)

+34%

Voluntary Employee Turnover 21% 30%

Absenteeism 1.9 1.9

Safety 6 Claims 1 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!

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!