What are the essential capabilities for those who manage training organisations?

This report develops and tests a management and leadership capability framework for the vocational education and training (VET) sector. The framework emerged from a comprehensive review of research into the characteristics and behaviours of managers and leaders, as well as from interviews and focus group meetings with VET managers.

The management and leadership capability framework which emerged consisted of nine core capabilities:

• corporate vision and direction
• focusses strategically
• achieves outcomes
• develops and manages resources
• change leadership
• interpersonal relationships
• personal development and mastery
• business and entrepreneurial skills
• develops and empowers people

These nine core capabilities and their associated 73 elements were incorporated into a questionnaire sent to managers in the VET sector. A total of 396 managers from all States and Territories rated their actual level of proficiency on each management and leadership capability, and their required level of proficiency. Overall, the high ratings by managers confirmed the validity of the framework and its capabilities for application to the VET sector.

These nine capabilities and their elements are:

Corporate vision and direction

• promotes and communicates a clear vision for the organisation
• effectively involves people in determining how to achieve the vision
• builds a successful corporate team
• establishes clear expectations about the level of performance required of team members to achieve the vision
• inspires people to commit to achieving the vision
• develops an effective strategy at achieving the vision
• supports the vision of leaders above them in the organisation

Focusses strategically

• envisages future trends and their impact on the organisation
• undertakes effective strategic analysis and reviews
• advocates strategic initiatives that keep the organisation ahead of its competitors
• demonstrates a comprehensive understanding of the VET sector, and how new government initiatives potentially impact upon the sector
• evaluates information quickly, critically and strategically
• creates a network of relationships that help to get things done
• assesses a range of solutions rather than selecting the easiest option
• makes a decision about the strategy and moves matters forward without delay
• demonstrates a willingness to look for original solutions 'outside the square'

Achieves outcomes

• achieves results that lead to long-term value for stakeholders
• creates a culture of achievement by ensuring that new initiatives actually produce expected outcomes
• sets and monitors clear performance standards
• inspires others to achieve the highest levels of quality
• develops and implements ongoing evaluation processes to monitor the efficiency, effectiveness and equity of outcomes
• applies a commercial orientation in the organisation by focussing on efficient and effective use of resources
• converts new ideas into value-added products and services
• effectively translates innovative ideas into business results
• holds people accountable for results

Develops and manages resources

• allocates and manages resources to achieve agreed outcomes
• eliminates waste and unneeded cost
• applies innovative solutions to gain the full use of the physical and other resources of the institution
• implements continuous improvement driven by information available from the institution's performance management processes and systems
• overcomes 'road blocks' that reduce the effective use of resources
• uses new technology well to increase organisational performance

Change leadership

• alters organisational structures and practices to meet client needs
• demonstrates a willingness to seek others' views about new initiatives or changes for the organisation
• is confident about using a range of strategies to change the organisation's culture and value systems
• galvanises others to act on required changes
• adopts a planned and staged approach to the management of change
• gains the commitment of staff to the adoption of new practices in the delivery of education and training
• is able to work with ambiguity and uncertainty
• communicates the need for change to staff using a wide range of communication channels and opportunities
• facilitates individuals to work together to identify and achieve common goals
• is willing to challenge the system when change is needed

Interpersonal relationships

• consults and facilitates the sharing of opinions in deciding upon appropriate actions, products or services
• negotiates persuasively
• liaises and communicates effectively
• appreciates the value of diverse views and opinions
• encourages debate that results in others' opinions rather than their own being adopted
• trusts people enough to 'let go'
• is sensitive to differences in the personalities and motivations of staff
• applies high standards of ethical behaviour in dealing with staff and clients

Personal development and mastery

• demonstrates personal integrity and applies ethical practices
• understands his/her own strengths and weaknesses
• recognises and addresses areas for personal development to be a better manager and leader
• as a team player, knows when to lead and when to follow
• admits to mistakes and errors of judgment
• demonstrates self-confidence as a leader
• recognises and accepts the need to seek support and help in their professional development
• shows appropriate emotional responses in a variety of situations
• has the technological knowledge required to succeed in tomorrow's world
• seeks to balance work and home commitments
• engages in positive practices towards the management of the emotional and physical impact of stress

Business and entrepreneurial skills

• uses marketing skills to identify different segments and product mixes for potential customers
• operates as an educational entrepreneur
• promotes the skills and expertise of staff in the organisation to customers
• demonstrates to customers the partnering potential of people in the organisation
• knows how to close a deal
• encourages a sharing of ideas about sources of new business
• views business processes from the ultimate customer prospective (that is, has an 'end-to-end' view)
• operates as a financial manager through the strategic use of budget documents and estimates
• employs financial management systems to make longer term strategic decisions about the business
• practises and encourages fiscal responsibility

Develops and empowers people

• deals effectively with poor performers by delivering appropriate forms of feedback
• identifies and implements programs and activities which meet staff development needs
• seeks opportunities to give advice, coaching or mentoring
• promotes trusting relationships that make staff feel valued
• makes a point of acknowledging good performance
• creates a learning environment for staff that encourages the introduction of innovative products, technologies and systems
• manages external expectations about the performance of staff under one's responsibility
• actively seeks out, encourages and develops talent
• asks people what they need in order to do their work better

In addition, a gap analysis of the required versus actual levels of proficiency revealed a number of training or developmental needs for VET managers. Overall, for the majority of specific capabilities listed earlier, these managers and leaders did not identify major training needs across all areas; rather, the needs that emerged were in certain areas. The major areas of training and developmental needs identified were in the three capability domains of 'corporate vision and direction', 'focusses strategically' and 'achieves outcomes'.

More specifically, these training and development needs were identified as the following:

Corporate vision and direction

• promotes and communicates a clear vision for the organisation
• effectively involves people in determining how to achieve the vision
• establishes clear expectations about the level of performance required of team members to achieve the vision
• inspires people to commit to achieving the vision
• develops an effective strategy at achieving the vision

Focusses strategically

• envisages future trends and their impact on the organisation
• undertakes effective strategic analysis and reviews
• advocates strategic initiatives that keep the organisation ahead of its competitors

Achieves outcomes

• sets and monitors clear performance standards
• develops and implements ongoing evaluation processes to monitor the efficiency, effectiveness and equity of outcomes
• converts new ideas into value-added products and services
• effectively translates innovative ideas into business results

Across the remaining capability areas, other developmental needs that emerged were:

• uses technology well to increase organisational performance
• gains the commitment of staff to the adoption of new practices in the delivery of education and training
• has the technological knowledge required to succeed in tomorrow's world
• uses marketing skills to identify different segments and product mixes for potential customers
• deals effectively with poor performers by delivering appropriate forms of feedback

The developmental needs of the three levels of managers-directors/chief executive officers (CEOs)/managing directors, senior managers and departmental heads-were generally similar. However, directors/CEOs/managing directors were generally more likely than other managers to identify developmental needs in 'corporate vision and direction', 'achieves outcomes' and 'develops and manages resources'. Analysis by State revealed high levels of similarity by management level in their identified training needs.

Finally, the capability framework identified in this report provides a useful summary of the capabilities required to manage and lead effectively in the VET sector. The gap analysis also indicates areas of training and developmental need. In the context of designing appropriate management and leadership development initiatives to close these gaps, this report describes a wide range of strategies for meeting the training and development needs of managers in the VET sector, including presentation methods, hands-on methods, and team-building methods. As training needs were broadly similar across States, this report supports the usefulness in developing national leadership programs that incorporate multiple learning elements like those detailed in the report.