2003 Strategy

2003 Strategy & Business Plan

December 2002

C:\WINDOWS\Desktop\2003 Business Plan.doc Page 2 of 34

Contents

Introduction 3

Overview 4

Mission, Vision and Values 5

2003 Objectives & Action Plans 6

1. Strategic context & orientation 7

2. Right training/qualifications 9

3. Robust quality assurance 11

4. “Smart, snazzy, cool” marketing & communications 13

5. Excellent customer service 16

6. Stakeholders “flying in formation” 18

7. Operational strength 20

Financial budgets 22

Appendices:

A. Situation Summary 25

B. Government’s Tertiary Education Strategy - Overview 29

C. Organisational History 30

D. Organisation Structure

• Governance

• Membership

• Staffing

31

32

33

E. BCITO Health & Safety Policy 34


Introduction

Qualifications and training within the building and construction sector are set to enter an exciting phase – and the Building and Construction Industry Training Organisation [BCITO] is looking forward to working with the sector to continue lifting the numbers of people involved in industry training and extending the range of qualifications available. • There is increasing interest from industry in improving the numbers of trade-skilled staff

working in the sector, and the Weathertightness issue has reinforced the need for improved skill levels. Only around 30% of those working in the sectors represented by the BCITO are trade trained/qualified, and there is significant scope to further increase that level of trained and qualified people within the industry.

• The BCITO is also working to broaden the range of its qualifications, both in terms of

developing qualifications “further upstream” from the standard trade qualifications – including Foreperson/Supervisor, Project Management and Small Business Management – and in terms of developing qualifications in entirely new areas – for example steel housing, roof trusses etc.

The Weathertightness issue – together with the associated debate about industry registration and accreditation – is also likely to have a bearing on the numbers of people involved in training with the BCITO. At minimum, there will be increasing numbers of people who have worked in the industry for some time wanting to get their existing skills recognised. At the other extreme, compulsory registration matched by trade qualification requirements will have a fundamental impact on the industry – and on the BCITO. The Government’s Tertiary Education Strategy 2002-2007 will also have an important bearing on the work of the BCITO. The TES’ six strategies are woven throughout the detailed work streams and activities that appear in the 2003 Plan. We have recently reviewed our ‘Recognition of Current Competency’ policies and procedures so that, should the numbers of people seeking that option significantly increase, we’re ready to respond. As well as having the right mix of qualifications matching industry need, the BCITO is improving its focus on quality assurance – making sure that the training provided to the sector meets the right standards, both off-job and on-job. We’re also increasing our marketing and communications effort, so that more young people (and their parents), those already working in the sector and employers are aware of trade training and career opportunities within the building and construction sector, while also raising the overall societal perception of industry training. Finally, the work we do involves a broad range of industry partners and stakeholders – we look forward to working with our partners this coming year.

Pieter Burghout Chief Executive


Business Plan Overview

2003 Strategy & Business

Plan

1. Strategic context & orientation • Participate in Government policy formation • Participate in Industry Training Federation • Complete changes to BCITO constitution • Develop Maori/Pacific Island peoples’ training policy

• Complete Weathertightness review of BCITO qualifications

2. Right training/qualifications • Qualification development & maintenance programme • Develop e-learning strategy • Research/forecasting methodology • Promulgate subpackaging policy and RCC methodology

• Prepare training strategy, particularly for off-job training provision

3. Robust quality assurance • Moderation programme for:

o Schools o Providers o ITOs o Assessors o Employers

• AMAP review

• Accreditation requirements (new, existing, and reviews)

4. “Smart, snazzy, cool” marketing/communications • Complete BCITO brand strategy • Complete marketing strategy for:

o Schools o Employers

o Industry associations o General

Marketing theme: Learning on job is cool

• Upgrading of BCITO marketing material • Prepare & implement external communications plan

• Target 10% trainee growth targets

5. Excellent customer service • Promulgation of approved service standards & reporting methodology • Implementation of customer satisfaction surveys • Monitoring of discontinuances • NAGs/RAGs organisation and servicing

• Modern Apprenticeship coordination

6. Stakeholders – “flying in formation” • Work with: o CAPITA, to purse opportunities for cooperation & liaison

o Key ITOs

o Key industry associations and employers o Providers

o Skill New Zealand/TEC and NZQA

7. Operational strength • Prepare HR Strategy [performance, training, communication, OSH] • Prepare IT Strategy [needs analysis & implementation] • Robust financial management [operational and capital] • Prepare Business Continuity Plan

• Prepare Corporate Procedures Manual


BCITO Mission, Vision & Values BCITO Mission: To promote, develop and organise relevant, appropriate, effective qualifications and training in the building and construction industry, by being responsive to the training needs of trainees, employers and enterprises. BCITO Vision: To be the leading Industry Training Organisation for the building and construction industry. BCITO Organisational Values: • Leadership • Responsiveness • Integrity & fairness • Excellence in customer service • Professionalism • Adding value & innovation • Investing in people • Team work BCITO ‘Catch-Line’: “We’re building people”


2003 Objectives & Action Plans As highlighted in the Overview on page 4, the BCITO’s 2003 Strategy & Business Plan is focussed on 7 key areas:

1. Strategic context and orientation – ensuring the BCITO is “aware” of the strategic environment it is operating in and pursues opportunities where appropriate to influence that strategic environment;

2. Right training & qualifications – ensuring the BCITO has the right suite of

qualifications that matches industry need and the right mix of training tools/options to support those qualifications;

3. Robust quality assurance – making sure that BCITO trainees are being taught to

the right level, both on-job and off-job, around the country;

4. “Smart, snazzy, cool” marketing & communications – ensuring the BCITO markets appropriately to prospective trainees/apprentices and employers, and continuing to target a minimum of 10% annual growth in trainee numbers;

5. Excellent customer service – the BCITO’s core strengths are it’s strong industry

linkages (through national and regional advisory groups) and regional network of training advisers; we need to be able to measure the levels of client satisfaction with the services we provide;

6. Stakeholders “flying in formation” – ensuring the BCITO works closely with other

key ITOs [both within CAPITA and others], key industry associations and other stakeholders to ensure that we’re all aiming for the same objectives/outcomes;

7. Operational strength – getting the basics of the BCITO business right, particularly in

the areas of people (HR) and IT. The pages that follow give details as to the actions to be taken under each of these seven overarching objectives.


1. Strategic context & orientation

The policy environment for ITOs is likely to change over the medium term. The establishment of the Tertiary Education Commission and the promulgation of the Tertiary Education Strategy (TES) will have implications for the workings of the BCITO and the strategic focus taken. It is important that the BCITO is not only responsive to those changes but that it gives input to the change process.

Three other key objectives in this area centre on achieving further BCITO constitutional change (with a view to securing charitable status with the IRD), developing a Maori Training Policy (contributing to Strategies Two and Five of the TES), and completing the review of the BCITO’s qualifications package as recommended in the Building Industry Authority’s Weathertightness Report.

1.1 Participate in Government policy formation

Actions: • Liaise with SNZ/TEC/Ministers as appropriate, depending on Government policy programme • Prepare submissions as appropriate – either on own account or in conjunction with other ITOs • Continue proactive relationship with TEC members

o Forwarding of relevant BCITO material to Dr Andrew West, Chair, TEC o Continued liaison with other key TEC members (eg John Blakeley, TEC member and CE of

Forestry ITO)

Responsibility: CEO Deadline: On-going (largely dictated by Govt)

KPI(s): • Input into Government/TEC policy programme to satisfaction of Board • Favourable policy environment for BCITO in medium to long term

Financial Budget:

$10,000 (contingency)

People Resources: Pieter Burghout

1.2 Participate in Industry Training Federation

Actions: • Work with ITF on general vocational/industry training communications strategy • Attend appropriate ITF meetings as required to ensure BCITO presence

o

Responsibility: CEO Deadline: Comms strategy prepared June 2003 (led by ITF)

KPI(s): • General vocational/industry training communications strategy finalised • BCITO increasingly seen by ITF as leading ITO – input sought into key ITF work streams

Financial Budget:

Nil People Resources: Pieter Burghout Management team

1.3 Achieve constitutional change

Actions: • Prepare/finalise draft constitution (based on Contracting ITO model) • Adopt constitution at BCITO AGM

o

Responsibility: CEO Deadline: March 2003 KPI(s): • Revised constitution adopted at BCITO AGM •

Financial Budget:

$10,000 People Resources: Pieter Burghout


1.4 Develop Maori/Pacific Island peoples’ Training Policy

Actions: • Initiate internal working group to develop policy/approach • Liaise with other ITOs to determine their policies/approach • Discuss with TEC regarding ITO best practice and Government expectations (if any) • Develop policy

o

Responsibility: CEO Deadline: July 2003 KPI(s): • Maori/Pacific Island peoples’ Training Policy adopted at August meeting of BCITO Board •

Financial Budget:

$10,000 People Resources: Pieter Burghout Bernard Te Paa

1.5 Complete and action review of BCITO qualifications (as per Weathertightness report)

Actions: • Work with contracted independent reviewer to complete review • Liaise with stakeholders to keep appraised of review and to seek their required input • Finalise report in association with Board (and key stakeholders as/if appropriate) • Promulgate recommendations as considered appropriate

o

Responsibility: CEO Deadline: March 2003 KPI(s): • Report on the Review of BCITO Qualifications presented to BCITO AGM March 2003 • Recommendations implemented as approved by Board •

Financial Budget:

$30,000 (balance of project)

People Resources: Pieter Burghout Other national & regional staff as required


2. Right training/qualifications

It is critically important that the BCITO has the right industry qualifications matching industry need (contributing to Strategies Three and Four of the TES). The two key projects under this objective centre on:

• ensuring the BCITO’s qualification development programme is properly resourced and actioned; and

• commissioning a skills forecasting study to determine future industry needs.

2.1 Qualifications development & maintenance programme

Responsibility: Qualifications Manager Business Development Mgr

Deadline: Various – as per schedule below

KPI(s): • Qualifications/resource material developed to satisfaction of relevant NAG/industry body •

Total Budget:

$169,000 People Resources: Grant Jones Ian Shepherd Chris Leach Regional staff

Sector Qualification/Resource Key Outcome Date $ Cost Unit standards & qualification None for 2003 [review due Jan05] NA Nil Carpentry ILWEP None for 2003 [review due Jan05] NA Nil Unit standards & qualification Rolled over to Dec 2005 Cement/Concrete Assessment Manual & Self

Learning Package Review, update, and bring up to ILWEP standard

Jun 03 $10,000

Unit standards & qualification None for 2003 NA Interior Systems Assessment Manual and

Resource Package None for 2003 [for 2004] NA

Nil

Unit standards & qualification Roll over to be approved [3yrs] Jun 03 Solid Plastering Assessment Manual and

Resource Package None for 2003 [for 2004] NA

Nil

Unit standards & qualification Roll over to be approved [3yrs] NA Floor/Wall Tiling Assessment Manual and

Resource Package Review, update, and bring up to ILWEP standard

June 03 Nil

PPCS Unit standards & qualification Advanced qual needs to be linked to new Supervisor/Small Bus

Jun 03 $5,000

Unit standards & qualification Review & consultation Jul 03 $10,000 HSIP Assessment Manual and

Resource Package Review, update, and bring up to ILWEP standard

Dec 03 $15,000

Elementary Const Assessment Manual and Resource Package

Completion and delivery to schools

Jan 03 $4,000

Re-scoping and consultation Feb 03 $5,000 Scaffolding Unit standards & qualification Draft and register July 03 $10,000 Initial scoping & consultation Sep 03 Truss/Wall Frame Unit standards & qualification Draft and register May 04

$15,000

Initial scoping & consultation Oct 03 Metal Frame Unit standards & qualification Draft and register Jun 04

$15,000

First draft Jan 03 Consultation with industry Feb 03

Unit standards & qualification

Complete and register Mar 03

Supervisor [& SBM, Adv etc]

Assessment Manual and Resource Package

First draft Jun 03

$50,000

Building Certifiers Unit standards & qualification Initial scoping & consultation Aug 03 $5,000 Initial pilot using Elementary

Construction unit standards Mar 03 Res Property

Maintenance Unit standards & qualification

Complete & register Oct 03

$10,000

Concrete Houses Unit standards & qualification Initial scoping & consultation Dec 03 $5,000 Review systems & material Sep 03 Codes of Practice Establish electronic system Dec 03

$10,000 Quality Management

Quality Management system None for 2003 [for early 2004] Nil


2.2 Develop BCITO e-learning strategy

Actions: • Continued involvement in Plumbing ITO e-learning project • Initiate internal working group to develop BCITO e-learning policy

o

Responsibility: Qualifications Manager Deadline: July 2003 KPI(s): • BCITO e-learning strategy adopted at August meeting of BCITO Board •

Financial Budget:

$10,000 People Resources: Grant Jones Ian Shepherd Chris Leach Regional staff

2.3 Complete skills forecasting study

Actions: • Contract appropriate organisation to undertake skills forecasting study (based on similar work

completed by CTA) • Work with contracted organisation as study report developed

o

Responsibility: Business Development Manager

Deadline: September 2003

KPI(s): • Skills forecast report completed •

Financial Budget:

$30,000 People Resources: Ian Shepherd Regional staff

2.4 Promulgate Sub-Packaging and RCC policies

Actions: • Finalise Sub-Packing and RCC policies – both at generic level and as applied to each sub-trade • Promulgate policies as required – including BC News and separate promotional literature • Depending on up-take of RCC, review resourcing of management of RCC

o

Responsibility: Business Development Manager

Deadline: March 2003

KPI(s): • Sub-Packing and RCC policies promoted in March issue of BC News • BCITO Board approval sought for any increase in RCC resourcing if so required •

Financial Budget:

$5,000 People Resources: Ian Shepherd Regional staff

2.5 Develop appropriate training strategies to accompany each qualification

Actions: • Draft training strategies prepared – initially for carpentry, before rolling out further to other sub-trade

areas – including determining mix of off-job training options [non-tutored classes, tutored classes, longer block courses] as appropriate for each region and for each trade

o

Responsibility: Operations Manager Deadline: March 2003 KPI(s): • 80% satisfaction with training options [measured through BCITO Satisfaction Survey results] •

Financial Budget:

Nil People Resources: Grant Jones Jim Kirkland Regional Managers


3. Robust quality assurance

The BCITO has an Accreditation and Moderation Action Plan that sets out a five yearly timetable underpinning the BCITO’s moderation and accreditation activities. The AMAP is reviewed on an on-going basis, given that it needs to take into account what’s actually happening on the ground. Moderation is becoming an increasingly important focus for the BCITO, even more so given the increasing number of people teaching/training to our material, including: • 150 accredited providers • potentially 420 schools • 2000+ on-site employers.

3.1 Moderation & Accreditation programme

Actions: • Monitor and manage moderation and accreditation system • Train and work with BCITO regional moderators • Liaise with providers and stakeholders • Work with projects that impact on moderation, assessment and accreditation activities • Continued improvement of quality assurance systems

o

Responsibility:

Moderation Manager Deadline: Ongoing

KPI(s): • RCC moderation procedures completed • Contract assessor pilot project completed • Complete database of assessors • Implement school moderation system • Moderation servicing levels above NZQA/ITO registered average

Financial Budget:

$10,000 People Resources: Donna Fox Mark Sommervell Regional staff

The detailed moderation programme for 2003 is as follows:

MONTH ACTIVITIES TIMELINES PEOPLE

INVOLVED Priority issues for 2003

• Number of schools coming on board (420 schools potentially) • Polytechnic course approvals situation • Contract assessors and RPL numbers

January

Accreditation - ALL YEAR

Set up tracking system regionally for provider moderation as it occurs.

Reports held in regional offices for random sampling.

Moderation planning day for unfinished issues from 2002

• 5 yr plan review. • Contract assessor • RPL

Start notification to providers and schools for moderation 2003

Jan-Feb. All regions

All regions start

Donna & Mark/Les/ Chris

Donna


MONTH ACTIVITIES TIMELINES PEOPLE INVOLVED

February

Continue follow up of notifications • Phone calls • Letters

Send information to regions on providers and schools that will need scheduling for moderation 2003

Complete feedback of new report forms for off-site and on-site mod.

Put into Quality Management System.

Work with NZPPC on course approval issues.

Data systems

All Feb. Donna

Donna

All regions

Chris

Donna Pieter

March National moderation training day

Review feedback contract assessor project and RPL for potential moderation system in place, issues.

Early March

On-going

All moderators

Donna and Ian Shepherd

April

Approach other ITO moderations due and set dates.

Set up internal moderation system for other ITO units used by BCITO.

Work on specialist trade moderations

Start regional training visits

On-going

April or before

Throughout year

Donna Shane and Donna Donna

Donna

May AMAP review & issues arising

May Donna

June

Consider issues that may have arisen from new systems ie on-line moderation, contract assessors, polytech on-site. etc

Prepare NZQA annual report

June onwards

Usually 30th June

Donna

July Review results of school moderations

July-Aug. Donna

August Start work with t/a on moderation visits as required.

Aug-Dec Donna

Sept. Moderation visits etc

Donna

October Planning meeting for 2004 Oct Donna and Moderation Group

Nov. Conference preparation

Nov Donna

Dec. Feedback on 2003 and scheduling activities for 2004

Donna


4. “Smart, snazzy, cool” marketing/communications

The ‘skills market’ is becoming increasingly competitive – both between industries (for example, the building sector competes with the civil construction and transport sectors for workers – both skilled and un-skilled) and within industries. It is important the BCITO has:

• a clear brand strategy, so that people know what the BCITO stands for and that the use of our brand is consistent and professional;

• a marketing strategy, particularly to schools, employers and the industry at large;

• simple, useful, clear and modern marketing products.

4.1 Finalise Brand Strategy

Actions: • Complete brand strategy development work with NBPR

o

Responsibility:

Marketing/Comms Manager

Deadline: February 2003

KPI(s): • Brand strategy completed

Financial Budget:

$10,000 People Resources: Marketing Manager Pieter Burghout

4.2 Marketing Strategy

Actions: • Finalise marketing strategy development work with NBPR • Undertake actions accordingly – including:

o Advertising programme o Direct marketing work with schools – including posters and possible promotional DVD video o Expo programme o Direct marketing to employers (includes completion of employer database) o General marketing/communications to sector at large – in association with industry bodies

as appropriate o Investigation of ‘apprentice discount’ options [eg phones, petrol, safety gear etc]

• Work with ITF on general vocational training marketing/communications strategy o

Responsibility:


Deadline: Strategy finalised January 2003 Actions implemented as per Strategy

KPI(s): • All direct marketing actions to schools completed • All expos attended • All direct marketing to employers completed

Financial Budget:

$205,000 People Resources: Marketing Manager Bernard Te Paa Pieter Burghout


4.3 Marketing material upgrade

Actions: • Finalise upgrade plan with NBPR • Upgrade marketing material as per prioritised schedule

o

Responsibility:


Deadline: As per schedule

KPI(s): • All material upgraded as per schedule •

Financial Budget:

$10,000 People Resources: Marketing Manager Bernard Te Paa Regional staff

4.4 External communications plan

Actions: • Publish 4 quarterly issues of BC News (in to-be-revamped format) • Develop monthly email newsletter for circulation to key BCITO stakeholders • Continue with BCITO Fortnightly Update but circulate to broader audience

o

Responsibility:


Deadline: On-going

KPI(s): • BC News published in March, June, September and December • First monthly email newsletter published January 2003, monthly thereafter •

Financial Budget:

$25,000 People Resources: Marketing Manager All staff

4.5 Achieve 10% trainee number growth targets

Actions: • Prepare individual marketing plans for each trade group, in conjunction with industry bodies • Monitor and report trainee volumes monthly internally and at each Board meeting

o

Responsibility:

Jim Kirkland Deadline: On-going

KPI(s): • 10% growth in trainee numbers achieved • Contracted STM targets achieved

Financial Budget:

Nil People Resources: Jim Kirkland RMs and TAs

The following trainee growth targets have been set for 2003:

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Initial

Conventional only

Total MA

Total Conv

Total

All

MA Conv 835 536 452 341 610 353 Carpentry 515 2324 +45 +48 +56 +35 +76 +30 694 2614 3308 +16% Interior Systems 9 113 +30 +9 +13 +5 +1 +1 19 172 191 +56% Cement & Concrete 3 87 +25 +14 +10 +5 +1 +1 7 143 150 +66% PPCS 0 106 +35 +10 +18 +5 +4 0 0 178 178 +67% Solid Plastering 3 36 +2 +2 +6 0 +4 +4 3 54 57 +46% Walls & Tiling 2 46 +8 +11 0 -1 +1 +3 2 68 70 +46% HSIP 0 415 -35 -30 -44 -10 -27 +7 0 276 276 -34%

Total New +110 +64 +59 +39 +60 +46 FULL TOTALS 532 3127 945 600 511 380 670 399 725 3505 4230 +16%

13% 12% 13% 11% 10% 13% +15%


Trainee Completions As with the previous year, the BCITO is targeting 800 completions for 2003. Skill New Zealand contracted targets Contracted STMs with Skill New Zealand for 2003 are as follows:

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 397 398 398 398

This translates to a total of 1591 STMS, as compared to 1545 STMS contracted in 2002. Skill New Zealand has contracted Modern Apprenticeship numbers of 110 until June 2003.


5. Excellent customer service

Client servicing and satisfaction (both employer and trainee/apprentice) are key requirements for the BCITO to maintain its operations on a sustainable – and growing – basis. The BCITO has recently adopted client servicing standards which set clear servicing performance measures, and these need to be promulgated and delivered against. As well as direct client servicing, the BCITO prides itself on strong industry input through its National and Regional Advisory Groups – professional servicing of these Groups is also critical. Finally, the BCITO has a Modern Apprenticeship role – both directly as an MA Coordinator, and indirectly in terms of working with other MA Coordinators – we need to have systems in place to ensure we meet appropriate service expectations.

5.1 Promulgation of approved service standards

Actions: • Implement ‘servicing’ schedules for each Training Advisor to achieve approved service standards • Ensure database can report on servicing levels

o

Responsibility:

Operations Manager Deadline: February 2003

KPI(s): • Servicing visits completed as scheduled • 80% client satisfaction level achieved

Financial Budget:


5.2 Implementation of customer satisfaction surveys

Actions: • Make amendments as appropriate to surveys once pilot survey in Wellington completed • Implement surveys in March and September 2003

o

Responsibility:

Operations Manager Deadline: February 2003

KPI(s): • Surveys completed as scheduled •

Financial Budget:

$5,000 People Resources: Jim Kirkland RMs and TAs

5.3 Analysis of Trainee Discontinuances

Actions: • Review reasons for discontinuances and report as appropriate to Board meetings •

Responsibility:

Operations Manager Deadline: Ongoing

KPI(s): • BCITO understanding of causes for trainee ‘discontinuances’ •

Financial Budget:



5.4 NAG/RAG servicing

Actions: • Hold National Advisory Group meetings as appropriate for each trade sector, but preferably no

fewer than 2 per year • Hold Regional Advisory Group meetings as appropriate for each region, but preferably no fewer

than 2 per year o

Responsibility:

Operations Manager Deadline: Ongoing

KPI(s): • NAG/RAG meetings held as scheduled • NAG/RAG chairperson satisfaction with organisation and servicing of meetings •

Financial Budget:


5.5 Modern Apprenticeship Coordination

Actions: • Monitor and manage Modern Apprenticeships within BCITO • Liaise with other Modern Apprenticeship Coordinators to ensure integration of systems and

information o

Responsibility:

Business Development Manager

Deadline: Ongoing

KPI(s): • Skill New Zealand satisfaction with MA Coordination provided by BCITO •

Financial Budget:

$5,000 (contingency only)

People Resources: Ian Shepherd Jim Kirkland RMs and TAs


6. Stakeholders “Flying in Formation”

The BCITO can not achieve all of its objectives without working with other sector stakeholders. It is critically important that all these stakeholders ‘fly in formation’ – such that all are working towards the same objective(s), rather than working at cross purposes. The BCITO is also looking to work closely/collaborate with other ITOs to ensure appropriate level of cost efficiencies, economies of scale, and market leverage are achieved.

6.1 Working with CAPITA

Actions: • Continued involvement and input to CAPITA • Encourage CAPITA members, where appropriate, to work/cooperate together to achieve cost

efficiencies, economies of scale, and market leverage • Preparedness to invest in combined projects where value to be gained •

Responsibility:

CEO Deadline: Ongoing

KPI(s): • BCITO recognised for having taken lead role on CAPITA •

Financial Budget:

$20,000 (contingency only)

People Resources: Pieter Burghout Management team

6.2 Working with other ITOs

Actions: • Continue seeking out opportunities to work with other ITOs, either formally or informally –

particularly the key larger ITOs where the BCITO can leverage off investments already made •

Responsibility:


KPI(s): • Recognised support from/input by other ITOs and reciprocated in return by BCITO •

Financial Budget:


6.3 Working with key industry associations

Actions: • Continued involvement and liaison with key industry associations – both nationally and regionally • Regular meetings with association leaders (elected and professional) to ensure BCITO is aware of

industry issues and concerns •

Responsibility:

Pieter Burghout Deadline: Ongoing

KPI(s): • Industry associations satisfied with relationship with BCITO staff at all levels •

Financial Budget:


6.4 Working with Training Providers

Actions: • Continue improving relationship with Training Providers

o Relationship meeting/contact with each Polytechnic/key PTE to occur at least once per year o Include providers on monthly email list

•

Responsibility:


KPI(s): • 80% satisfaction level with BCITO relationship from sample of providers •

Financial Budget:

Nil People Resources: Pieter Burghout Regional Managers


6.5 Working with key Government agencies

Actions: • Continue improving relationship with the Tertiary Education Commission and NZQA

o Relationship meeting with TEC and NZQA at least once per year o

Responsibility:


KPI(s): • 100% satisfaction level with BCITO relationship (evidenced by informal surveying of key agency

staff) •

Financial Budget:



7. Operational strength

Finally, there are a number of internal policies and systems that need to be working efficiently and effectively to support the work of the BCITO, particularly the BCITO’s people (HR) policies and IT systems. The BCITO is also keen to ensure it retains a measure of financial strength to withstand any financial shocks arising from abrupt changes to its external environment. This BCITO objective contributes towards the final strategy of the Government’s Tertiary Education Strategy – Strengthen System Capability and Quality.

7.1 Preparation of HR Strategy

Actions: • Work with HR Committee to develop broader HR Strategy, covering matters such as:

o Performance management system [performance planning and annual appraisals] o Career management o Training o Occupational safety and health

o

Responsibility:


KPI(s): • HR Strategy completed June 2003 • 90% satisfaction rating in staff survey •

Financial Budget:

$10,000 (external consultant)

People Resources: Pieter Burghout Jim Kirkland HR Committee

7.2 Preparation of IT Strategy

Actions: • Work with committee of staff and with external advisers to develop BCITO Information/IT Strategy,

covering such matters as: o Hardware and software requirements o Replacement accounting software o “In the field” use of information technology & training requirements

• Roll-out system once IT Strategy adopted by Board o Pilot region in first instance o All BCITO thereafter

o

Responsibility:

CEO Deadline: Strategy – Feb 2003 Pilot – Mar-May 2003 Full roll out – Jun 2003

KPI(s): • Strategy adopted by Board • Successful roll-out of new IT system to all staff •

Financial Budget:

$50,000 [exclusive of system cost]

People Resources: Pieter Burghout Graham Olds Jim Kirkland IT Committee

7.3 Prepare Business Continuity Plan

Actions: • Set up internal committee to lead process • Develop Business Continuity Plan, managing

o National Office risk o Regional Office risk

o

Responsibility:

Finance Manager Deadline: July 2003

KPI(s): • Business Continuity Plan adopted by Board •

Financial Budget:

$10,000 People Resources: Graham Olds Staff Committee


7.4 Prepare BCITO Corporate Policy/Procedures Manual

Actions: o Work with committee of staff to prepare Corporate Policy/Procedures Manual

o

Responsibility:

Finance Manager Deadline: June 2003

KPI(s): • Corporate Policy/Procedures Manual adopted by BCITO Management Team •

Financial Budget:

$10,000 [contingency]

People Resources: Graham Olds David Moodie Linda Moodie Staff Committee


2003 Financial Budgets

Financial performance budget

2002 2003 Year end Budget Projection INCOME Subscriptions & Fees 1,111,730 1,223,000 Recognition of Prior Learning 120,000 Note 1 Skill New Zealand 2,734,374 3,231,000 Sales of Goods (net) 175,632 160,000 Sponsorship 43,200 35,000

Recognition of Current Competence Provides for the income expected from take up of Recognition of Current Competence policies by the Carpentry and Cement & Concrete trades.

Other Income 255,201 80,000 Interest 128,611 85,000

TOTAL INCOME 4,448,748 4,934,000

EXPENSES Personnel Salaries 1,908,017 2,279,000 Staff Recruitment Costs 48,642 25,000 Other Personnel Costs 34,086 44,000

Total Personnel Expenses 1,990,745 2,348,000

Operating Accommodation 88,962 105,000 Advertising 112,000 Consultancy 99,011 Directors Expenses 39,216 39,000 Meeting Expenses 19,226 20,000 Moderation Costs 47,006 0 Motor Vehicle expenses 61,309 77,800 Motor Vehicle Leases 145,464 181,000 Provider Costs 157,087 300,000 Staff Training 14,116 70,000 Travel 62,247 75,200 Other Operating Expenses 6,536 44,275 Business Plan Projects 645,000 Note 2 Business Plan Projects $000

Total Operating Expenses 852,180 1,557,275 Strategic Issues 60 Qualifications 215 Administration Quality Assurance 10 Accounting/Audit 104,997 10,000 Marketing 250 Minor Assets 7,131 3,600 Customer service 10 Bad Debts 120,055 90,000 Stakeholders 20 Cleaning 9,083 11,000 Operational strength 80 Computer R & M 29,804 25,000 Depreciation 91,947 115,400 Note 3 Equipment Rental 12,308 11,700 Insurance 11,000 13,800 Legal Expenses 17,521 10,000 Postages 35,464 37,200 Power 8,994 9,000 Public Relations 27,144 Rent 164,325 206,000 Repairs & Maintenance 5,066 5,000 Stationery & Printing 75,224 60,000 Subscriptions 14,000 15,000 Sundries 6,482 6,000 Taxation Services 20,750 15,000

Depreciation The estimate of depreciation will be affected by the method determined to fund asset purchases. Two factors should influence this: 1. The tax status of the BCITO. As a tax paying

entity, best practice would be to lease equipment under an operating lease, and payments are fully deductible in the year of payment. If the BCITO secures charitable status, best practice would suggest outright capital purchase;

2. The rate of technical obsolescence of the assets being acquired – the higher the rate, the more likely leasing would be appropriate.

Telephone & Tolls 110,807 134,000 CEO Travel 15,000 25,000 Other Admin Expenses 8,755 6,000

Total Admin Expenses 895,857 808,700

Other expenses Bank Fees & Interest Paid 26,427 4,000 Loss on disposal of assets 1,277

Total Other Expenses 27,704 4,000

TOTAL EXPENSES 3,766,486 4,717,975

Surplus before Tax 682,262 216,025


Financial position budget

2002 2003 YEAR END BUDGET

PROJECTION CURRENT ASSETS

249,733 Cash, Bank & Call Deposits 325,709 2,000,000 Term Deposits 2,400,000

25,000 Sundry Debtors 25,000 347,000 Skill New Zealand 350,000

20,835 Payments in Advance 20,000 231,000 Provisional Tax Payments 37,422

6,000 Interest Receivable 9,500 Development Work in Progress

500,000 Stock on Hand 220,000

$3,379,568 TOTAL CURRENT ASSETS $3,387,631 CURRENT LIABILITIES

350,000 Sundry Creditors 350,000 10,000 Membership fees in advance 15,000

Provision for taxation 25,000 GST Payable 25,000

100,000 Accrued holiday pay 100,000

$485,000 TOTAL CURRENT LIABILITIES $490,000 NON-CURRENT ASETS

300,000 Fixed assets (nett) 446,515 228,588 Training Package (Intellectual Property) 183,588

$528,588 TOTAL NON-CURRENT ASSETS $630,103

$3,423,156 MEMBERS EQUITY $3,527,734

Fixed asset Purchases Depreciation Opening Balance 300,000 Nett Assets Depreciation on existing assets 74,000 Purchases Hardware-Q2 50,000 File Server & peripherals 13,500 Software-Q2 20,000 Database/Accounting 5,400 Hardware-Q3 150,000 Regional PCs 13,500 Software-Q3 100,000 Support software 9,000 320,000 Total Purchases 41,400 Nett Disposals -5,473 To MBS -52,612 To Federation -58,085 561,915 Projected Balance at 31/12/03 115,400


Appendices A. Situation summary

B. Government’s Tertiary Education Strategy 2002-2007 - Summary C. Organisational history


• Governance

• Membership

• Staffing

E. BCITO Health & Safety policy


A. Situation Summary 1. Current Qualifications Level Credits

National Certificate in Carpentry 4 266-303

National Certificate in Carpentry (Advanced) 4 40

National Certificate in Concrete Construction 3 89 or 91

National Certificate in Concrete Construction (Specialist) 3 63-110

National Certificate in Concrete Production 3 73-86

National Certificate in Elementary Construction Skills 2 78

National Certificate in Fibre Cement Linings Fixing 4 81-87

National Certificate in Fibre Cement Linings Finishing 4 81-87

National Certificate In Fibrous Plaster (Installation) 4 167 or 182

National Certificate In Fibrous Plaster (Manufacture) 4 103-123

National Certificate in Floor & Wall Tiling 4 233

National Certificate in Construction Health & Safety & Injury Prevention 4 50, 53 or 81

National Certificate in Plaster Board Fixing 4 90 to 93

National Certificate in Plaster Board Finishing 4 90 to 93

National Certificate in Rigging 2, 3, 4 106, 141, 166

National Certificate in Scaffolding 2 or 4 123 or 176

National Certificate in Solid Plastering 4 141 or 276

National Certificate in Specialist Interiors (SCI) 3 84 or 106

National Certificate in Specialist Interiors (PPI) 4 100 or 122

Registration dates:

Carpentry 1995

Interior Systems 1995

Construction Management 1998

Health & Safety 1999

Solid Plastering 2000

Floor & Wall Tiling 2000

Cement and Concrete 2000

Proprietary Plaster Cladding Systems 2001 2. Current Products

Carpentry Integrated Learning with Employment Package

Carpentry (Practical) Apprenticeship Package

Interior Systems Apprenticeship Package

Solid Plastering Apprenticeship Package

Floor and Wall Tiling Apprenticeship Package

Cement and Concrete Self-Learning Package (Base Level National Certificates)

Cement and Concrete Self-Learning Packages (Specialist Level National Certificates)


Proprietary Plaster Cladding Systems Trainee Package

Construction Health and Safety and Injury Prevention (HSIP) Trainee Packages

Quik Calc card

Qualifications card

BC News

NZS 3604:1999

Marketing material – general BCITO marketing brochures and specific trade-related brochures 3. Market Penetration

Approximately:

• 10 percent of the employers in the industry sectors we cover are involved in formalised training;

• 16 percent of employees are involved in industry training;

• 32% of people working in the industry sectors we cover are trade trained [2001 Census]

These rates of penetration vary around the country – from an estimated average trainee penetration in the Northern region of 11% to 25% in the Southern region.

The Weathertightness issue – and related to it the issues of industry registration/accreditation – may have a major bearing on these levels of penetration in future years, particularly if some form of compulsory registration [and associated qualifications] is required.

4. Market Share

We have an estimated 95 percent market share – ie of those involved in formalised training in the sectors we cover, 95% complete their training through the BCITO.

5. Competitive Situation While the BCITO is the recognised industry training organisation and standards setting body for the building and construction sector, the threat of new entrants and substitutes is relatively high. The ITAB scheme has gained some momentum in Auckland through Unitec, and has continued to extend into other centres. Conversely, a number of off-job training providers have re-aligned themselves with the BCITO and are using BCITO training resources and materials to teach their courses.

The BCITO is keen to pursue opportunities to ‘re-unite’ the apprenticeship courses available to the building and construction sectors.

6. Swot Analysis

Current Corporate Strategies

Building and sub-trade coverage

Pan-industry representation, together with appropriate level of independence from Master Builders Federation

Increasing membership with key trade associations

Securing charitable tax status with IRD

On-going refinement of Integrated Learning with Employment Package resource materials, and extending concept to other trade resource packages

Substantial Government funding of organisation


Main focus on new entrants to industry, but with increasing industry interest in Recognition of Current Competence (RCC) for those with existing skills

On job and off job training options

Differential Strengths

Comprehensive technical trade qualifications

National network of field staff

Substantial industry ownership/input

Adequate Government funding – although, at $2200 per STM, the BCITO has the lowest STM rate of all ITOs [highest STM rate - $3800, average STM rate - $3000]

Established customer base (1800 employers and 3500 plus trainees/apprentices)

Efficient credit collection and registration system

Sound qualifications and resource materials development capability

Good staff retention

Modern Apprenticeship Coordinator role

High market share in carpentry

Skill New Zealand (SNZ) recognition (last renewed in 1998, fast tracked process in 2002 [pending final SNZ Board meeting to approve in December 2002])

Differential Weaknesses

Relatively poor numbers training in all trades, but more particularly so in sub-trades and existing established workers in industry

Dependence on carpentry product

Dependence on Government funding

Quality control varies

Varying service delivery in regions

Lack of industry/public awareness of organisation and products

Relationship with some training providers poor

Lack of formal integrated career/training pathway for new entrants and existing industry workforce

Lack of formal promotional/communication plan

Response to changes in industry training required is slow Opportunities

Development of new qualifications to meet industry need, including non-technical qualifications – eg supervisors, scaffolding, small business

Database of former employers involved in training

Database of prospective employers

Size of Auckland market

Development of comprehensive RCC procedure for existing workforce

Limited credit packages for sub-trades

Improved marketing of vocational training generally, and marketing of the building sector specifically, including the promotion of trade training as an alternative to university and polytechnic study

Extension of non technical training to non carpentry sectors of industry


Encouraging training providers to use BCITO training material, so that irrespective of training option followed, core training is the same

Involvement with CAPITA as a vehicle for joint initiatives in industry training to reduce costs and share resources

Development of joint venture initiatives with key stakeholders in industry training - BRANZ / BIA

Increasing industry user pays for targeted training

Development of qualification for building certifiers in conjunction with BOINZ

Increased training volumes arising from the Weathertightness issue and/or industry registration/accreditation

Working with Certified Builders to encourage re-unification of apprenticeship training

E-learning options for the industry and the BCITO’s role

Threats/Risks

Opposition from (and provision of competing training products by) certain training providers, particularly Unitec

ITaB promotion through Certified Builders

Alternative practical training administration and RCC by other polytechnics/providers

Increase in demand by other ITOs for Government funding

Dealing with the boom/bust cycle within the industry

Trade training least attractive option for school leavers

Unitec group training scheme in Auckland

7. Potential Partners

Painting and Decorating ITO

Joinery ITO

Building Service Contractors ITO

New Zealand Contracting ITO

Design and Construction Consultants ITO

Plumbing & Drainlaying ITO


B. Government’s Tertiary Education Strategy 2002-2007 - Overview The Government’s inaugural Tertiary Education Strategy for the 2002-2007 period contains the following six over-arching strategies: • Strategy One: Strengthen System Capability and Quality – National goals cannot

be achieved unless we enhance the strategic capability and robustness of the tertiary education system as a whole.

• Strategy Two: Te Rautaki Matauranga Maori – Contribute to the Achievement of

Maori Development Aspirations – We need to recognise the unique position of Maori as Treaty partners, and the huge significance that learning and education has for Maori communities. This strategy addresses issues related to skill development, research and capability-building for Maori.

• Strategy Three: Raise Foundation Skills so that all People can Participate in our

Knowledge Society – Improving foundation skills (literacy, numeracy and other basic skills) will ensure that more New Zealanders are able to participate effectively in the economic and social benefits of our vision for national development.

• Strategy Four: Develop the Skills New Zealanders need for our Knowledge

Society – This strategy recognises that we will need high-level generic skills in much of the populace, and more highly-specialist skills in areas of comparative advantage, for New Zealand to accelerate its transformation into a knowledge society.

• Strategy Five: Educate for Pacific Peoples’ Development and Success – Pacific

peoples represent a significant and rapidly-growing proportion of New Zealand’s population. This strategy addresses issues relating to Pacific people’s capability needs and skill development that will ensure their success and development.

• Strategy Six: Strengthen Research, Knowledge Creation and Uptake for our

Knowledge Society – This strategy recognises that research and innovation are key drivers of modern economies, and also that the broader application of new knowledge will enable the achievement of social, environmental and infrastructural goals.


C. Organisational History As a result of the Industry Training Act 1992, BCITO was established in 1993 as a trading division of the Industrial Association of Employers. The organisational form chosen was that of an incorporated society, the members of which were 19 Regional Master Builder Associations and 3 Regional Industrial Associations of Employers.

In 2001 the IAE approved a new Constitution, changed the name of the incorporated society to the Building and Construction Industry Training Organisation Inc, and introduced a category of “Association Members” solely responsible for electing the Directors of the BCITO.



BCITO Governance A Governance CEO Staff

BCITO Board of Directors [6 members]

Elected by Association Members

Make recommendations to Board of Directors

B Industry Representation i. National Advisory

Groups Carpentry Cement

& Concrete

Interior Systems

Comprising representatives of: Floor & Wall

Tiling Solid Plastering

Proprietary Plaster Cladding

Systems

Construction Management

• Trade associations • Training providers • Individual employers • Unions • Manufacturers

Make recommendations to applicable National Advisory Group

ii. Regional Advisory Groups

Northern Waikato/Bay of Plenty

Central North Island

Comprising representatives of:

• Training providers • Individual employers

Wellington Central South Island

Southern

• Apprentices • Trade Associations • Manufacturers


BCITO Membership Structure Voting Members Subscribing Members

• 19 (Regional) Master Builders Associations

• 3 Regional Industrial Associations of Employers

Association Members

Currently 6: • Registered Master Builders

Federation • Cement & Concrete Association • Interior Systems Association • Cladding Institute • NZ Institute of Building • NZ Building Trades Union

Voting rights on all matters except election of Directors Entitlement to net assets on winding up of BCITO

Sole voting rights on election of Directors

Voting rights on all other matters

No entitlement to assets on winding up of BCITO

Non voting Members Corporate Members

• Organisations that are not members of Association Members

Associate Members

• Individuals and Schools


BCITO Staffing

Pieter Burghout Chief Executive

Jim Kirkland Operations Manager

Ian Shepherd Business Development

Manager

Grant Jones Qualifications

Manager

New AppointeeMarketing/Comms

Manager

Donna Fox Moderation/ QA

Manager

Graham OldsFinance Manager

Chris Leach Development Officer

James Kumar Accounts Officer

Sally Reay Accounts Officer Dorothy Walker

National Administrator

National Office

Bernard Te Paa Regional Manager

Malcolm Campbell Training Advisor

Geoff Kindred Training Advisor

Northern Regional Office

David Moodie Regional Manager

Russell Allison Training Advisor

Waikato/ Bay of Plenty

Regional Office

Hakaraia Ihaka Training Advisor

Wayne Pivac Training Advisor

Jim Johnston Training Advisor

Mark Somervell Training Advisor

Linda Moodie Regional Administrator

Warren Buxton Training Advisor

Les Wilson Training Advisor

New Appointee Training Advisor

Tony Greeve Regional Manager

Dave Check Training Advisor

Central North Island

Regional Office

Lynette Clegg Regional Administrator

Darren Dredge Training Advisor

Mark Waterson Training Advisor

Ian Alexander Regional Manager

Michael Baron Training Advisor

Central South Island

Regional Office

Lesley Brittenden Regional Administrator

David Riley Training Advisor

Graham Smith Training Advisor


Holly Townsend Reception/ Administration

Graeme Paton Regional Manager

Darryl Bradford Training Advisor

Wellington Regional Office

Paul Mitchell Training Advisor

Trevor Schaffer Regional Manager

Gavin Good Training Advisor

Southern Regional Office


Penny Moonsammy Regional Administrator

Shane Conquer Training Advisor

Tony Love Training Advisor


E. Health & Safety Policy The Building and Construction Industry Training Organisation [BCITO] is committed to

maintaining a safe and healthy working environment for the safety and health of our employees and other people in our places of work. Health and safety is everyone’s business, and everyone is expected to share in our commitment to avoid all accidents and incidents, which may cause personal injury, property damage or loss of any kind. Every employee is expected to act safely at all times to ensure their own welfare and that of theirfellow employees and others in their workplaces We will ensure the safety and health of our employees by: • Providing and maintaining a safe working environment; • Providing facilities for health and safety; • Ensuring all plant and equipment is safe for use; • Ensuring all employees are not exposed to unmanaged or uncontrolled hazards; • Developing and implementing emergency and evacuation procedures. To achieve this we will:

1. Systematically identify and control all hazards in our places of work. Where there are significant hazards we will take all practicable steps to eliminate, isolate and or minimise these hazards to prevent injury or damage.

2. Inform all employees of these hazards and the hazard controls. 3. Ensure all employees are properly trained and supervised. 4. Inform all employees of emergency procedures and evacuation procedures. 5. Record and investigate all incidents and accidents in our place of work, and take all

practicable steps to prevent these events from happening.

Documents

2003 Strategy