BDO Nelson Parkhill. Chartered Accountants & COflsulta-nts. Operational - incorporating a Stl'atl~~ili!'~': ifblbill12 ReVie~".'.
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1 JBDO BDO Nelson Parkhill Chartered Accountants & COflsulta-nts Level 21, 2 Market Street Sydney NSW 2000 G:'"JO Box 2551 Sydney NSW 200 I OX 1222 Sydney Tel: Fax Proposal to The Health & R~~ear:~IlE~pfoyees' i~~o~iati.)nof NS~. Operational - incorporating a Stl'atl~~ili!'~': ifblbill12 ReVie~".'.~ ft, "'", BDO Nelson Parkhill HR Consulting Division, April 1996
2 18DO INTRODUCTION The Proposal > This proposal has been prepared at the request of the Health & Research Employees' Association ofnsw. (HREA). > It is the purpose of this proposal to demonstrate to the HREA that BDO can provide them with an innovative, efficient, timely and cost~effective solution to: a.,facilitate the strategic planning process, and '. b.' strategically review their ful! operational processes, work practice~... and structure.. > As a summary, this proposal outlines: - Who BDO Human Resource Consulting Division is; - Our Consulting Methodology; l I, - -" -.-,. '. -." Consulting Review -1 - BDO Nelson Parkhill, 1996
3 IBDO WHY BDO HUMAN RESOURCE CONSULTING DIVISION?... Highly skilled professionals l!>- BDO Nelson Parkhill is one of the country's leading firms of chartered accountants and management consultants. l!>- At BDO, our philosophy is to work with our clients, helping them to define and achieve their business objectives. Our team of highly skilled partners and specialist staff has extensive expertise and experience advising on all aspects of corporate activity. l!>- The BDO Human Resource Consulting Division provides a range of services and products specifically designed around the HR and strategic planning needs of a diverse client base. This includes: - Strategic HR management reviews - Change management consulting - Organisational behaviour & psychology-based consulting - Executive recruitment (Search and Selection) Multi-disciplinary approach...-'.0 -'-H<-:.~;';. './:.:~, l!>- Our consulting team for this project includes rstrategic$ 'planning, business process re-engineering, psychology, acc:ountillg,,!i.i. ld. info~~:t~~ology. -'" "...:->'" - ''',-;- '::, l!>- The scope ofbdo's expertise enables us to help clients identuytbe ~~6iutibh to meet their needs and to provide the independent professional services. ~ In other words, we have specifically designed an appropriate strategy fj.,r],he that the objectives, as outlined in Section 3, will be achieved. This willl1~j~y~r... ' "off-the-shelf' process. ~ Our guidance on strategic HR planning issues is totally ilnpartial with no ri~l<n'f arlitt1%' conflict of interest. ".. 5';:,,", Consulting Review -2- BDO Nelson Parkhill, 1996
4 18DO 43 The Consulting team ~ The project will be run and coordinated by the Human Resource Consulting Division of. BDO Nelson Parkhill. We therefore propose to assign the following consulting staff to the project: Project Manager ~ Mark Werman, National Director -HRConsulting, will be responsible for the implementation of the HREA Review. Mark is a qualified Chartered Accountant with post-graduate Human Resource, Industrial Relations & Change Management qualifications (M.Com - UNSW ). Extensive experience in the implementation of human resource and strategic planning development programs, organisational behaviour programs, change management methodologies and communication/group decision making processes. Of relevance in this instance, is Mark's significant consulting experience within the Australian Union movement, specifically with the LHMU, The NSW Labor Council and the NSW Nurses Association. In addition, Mark will ensure that total quality is maintained throughout the project and the achievement.. objectives. Consultant ~ Coming from a psychology-based background, Dan Glass will be assistii~~* much ofthe Review - and particularly, in facilitating the str;ategip pl:anrlin!~pi:pcess will also add value via his specialist psychology training, With a... i.fi rstcla~js degree in Psychology, Dan is experienced in psychological te!jtiri~,'ou1:pl~f.!ier consulting and executive recruitment as well as the broad range ofijtnltel~c methodologies..-", ~,~~: +~ >... ~ :.'>.".:.1.. I.,. " '.-.,. -:p: Consulting Review -3- BDO Nelson Parkhill, 1996.
5 IBDO CONSULTING METHODOLOGY If an organisation is to achieve its goals, it needs: a) Financial resources, such as money and credit; b) Physical resources, such as buildings and equipment, and c) People - who provide the intelligence and effort For a variety of reasons, managers often neglect the importance of the contribution of its staff to the success of its organisation. Organisations have failed because employers have taken their people for granted. To ensure the healthy operation of an organisation in these times of change, all organisations require a strategic plan. The goal of the HREA is to develop a structure that integrates and unifies all the employee's within the Association - into the strategic plan.bdo will work together with the HREA to review and redefine the work practices so that this critical goal may be achieved. As a result of inefficient work practices and an organisational structure that is l!q1 integrated with the employees, many inefficiencies can be generated, and continue unchecked, will have serious repercussions on the ability of to.achieve its goals: - Job design problems resulting in inefficient allocation of resources - Under/over utilisation of staff - Inadequate systems and procedures - Deficiency in skill levels - Lack of accountability - Reluctance to change - Lack of a clear understanding by the staff of the "whole picture" : ~-, :( '...','" \,,,:~~~r}.~. <:~. Recognising that no organisation operates perfectly, managers often sense that their organisation's performance can be improved, but they are unable to identify what can be. improved and how it can be improved. It is BDO's intention to examine the efficiency of the HREA operations via a process consultation approach so that we can specifically review and redefine the work practices that need improvement. These would include work flow, informal relationships among employees and formal communication channels. We will conduct the ReView by implementing a two-tiered consulting approach: ". i,,1',- " ",..-' ".' Consulting Review - 4- BDO Nelson Parkhill, 1996
6 IBDO 45 Stage 1 - Strategic planning & SWOT analysis The ability of the HREA to compete at speed is now critical due to: ~ Political, socio-economic, technological change ~ Shorter product life cycles ~ Customer/member power - service being the differentiator ~ Five year strategic plans have gone ~ Workplace reform ~ Implementation is where the action is! - and this is where the "people" component in the formula is. "47% of Fortune 500 companies between 1987 and 1989 are no longer there because they were not adaptive enough. In this decade, change or die!" -Warren Bennis. Everyone is doing something to stay ahead - Cost reduction programmes, Downsizing, TQM, Reorganisation, Outsourcing, Flattening, IT investment, Customer satisfaction programmes and Business Process Re-engineeririg, just to name a few. As a result of the many recent changes (and proposed changes) that the HREA is going through, including: - change of government - business reform of internal processes, efficiencies & - proposed organisational restructure - expansion of services to Wollongong.& Newcastle - move to new offices, to name a few ; Ii it is necessary that the HREA has the capacity to: Devolve power down, closer to the members and align activities through a. Have smaller units and manage growth' Encourage innovation and risk and reinforce efficiency and standardisation Encourage change and adaptation and ensure stabilityandpredicability Have local responsiveness and common and international standards Therefore, when assessing the capacity of the Association to operate in a fast changing environment, it is imperative for the organisation to: ~ plan for the future, and ~ consider its strategic options ",, ",~. ' The process by which this is achieved is known 'as the strategic planning process. Consulting Review -5- BDO Nelson Parkhill, 1996
7 IBDO 46 This process comprises of a seven step analysis outlined as follows: Step 1: Step 2: Step 3: Step 4: Step 5: Step 6: Step 7: Capability Analysis - SWOT (Strengths, Weaknesses, Opportunities & Threats) analysis of the organisation COPS Analysis (Culture, Organisation, People & Systems) of the organisation - Where are you now and where do you want to be Develop the mission: What 'businesl!' is the Association in; what Iwho is being satisfied; how are members needs being satisfied? Convert the mission into objectives: financial/strategic performance; long/short term Build a strategy around each of the objectives Implement the strategy Evaluate performance This analysis is one ojthe most fundamental and important par/so/the Review process - jor it is the results oj this analytical process upon which the results fro.", Stage 2 will be compared Performed correctly, this analysis will lay the joundatidri$!otthe, i.:l)ntext oj the whole Review," " ',',,~, :'", i', f:- BDO HR Consulting will assist the HREA in developing a Strategic Plan byjicj:irig as the primary facilitator of the process,',.. ' It is recommended that the process be completed out of Sydney,This will allow for the strategic planning team to focus on the critical issuesa.t'harid ' distracted by the constant flow of day-to-day work issues, '. :". ";. Timeframe: 2 days. ",'.. ',,',, Consulting Review -6- BDO Nelson Parkhill, 1996
8 .. IBDO 47 Stage 2 - Structural & Work Practices Review Levell Level 2 Level 3 Level 4 t - Organisational Objectives f Work practices/ processes - by function. ~ i Jobs L- --t Employees What BDO will b e reviewing a) Review of the HREA formal organisational structure - that is, it's degree of complexity, formalisation and centralisation. b) Review of the work content of the jobs in the Association and the associated functions, processes and work practices by which the ~sociation attempts to achieve its goals. We will also review job redesign issues, so that iilriay be possible for jobs to be made more challenging, interesting and motivating by cpmbining tasks, forming natural work units, establishing member relationships, vertical'lria,dlflg and opening feedback channels.....'.... -'. ':: _ tc"-'~ The above diagram illustrates the nature and scope of our Stage2Revi.~~lilt~vel 2,.. '. utilising our modified business process re-engineering methodologyiuid c)i{t. fl<ic~" ',i',. programs, we will map out precisely the work processes, workloads, reportijlg'iai~'. I, and information flow within the organisation. "i f/;,' ii p.;i:"'- ~~:,~:~'::<.'.,," The Level 3 analysis will determine exactly how the total existing work processesah,; '.. '... the subsequent work load, is divided up into the respective jobs/positions. This analy~t$: becomes particularly useful when assessing both present and future staff levels - and ' even more importantly, the nature and type of staff required to meet the strategic objectives of the HREA ','. The benefits to the HREA, as a result of this effort will be to: 1. Highlight areas which generate inefficiency within the Association; 2. Identify workflow bottlenecks within the Association, and 3. Establish a more effective break-up of functions and delegation of responsibilities across existing employees...,;. "... Consulting Review -7 - BDO Nelson Parkhill, 1996
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