Australian First For Box Hill
The Age
Monday September 16, 1996
FOLLOWING the seismic effects of David Karpin's taskforce report on Australian management just over a year ago, a number of educational institutions with management programs have taken a hard look at his recommendations and sought to respond appropriately through new courses and curriculums.
Box Hill Institute of TAFE's electronics technology division, Diploma in Services Management, which was developed in response to industry requirements, with the support of the Association for Services Management International and Leader Communications, is a case in point.
Developed in 1994, responding to the Karpin Inquiry and industry management survey, this two-year part-time course is the first of its type in Australia and is expected to establish the standard for service managers, says John Bodo, manager of the centre for information technology and applied electronics.
Currently running in Melbourne and Sydney, participating students are from various industries, practicing service managers, supervisors and small-business owners. "We jealously guard our standards," Mr Bodo says. "This is not a Micky Mouse course, but we are focusing on a niche market."
We need courses like this, because organisations are rapidly moving to flatter management structures that bring line supervisors and managers into areas where they must be competent in business management. Traditionally they reach this level as a result of their technical skills but line managers often lack the business know-how needed to effectively develop business.
Companies where supervisors and managers do not contribute to key operations strategy decisions, or make sound financial decisions should consider upgrading their management education. An understanding of the operating costs of a service business, including where and how those costs occur, is essential for these managers and those skills can be taught. Areas such as logistics management, contract preparation, legal aspects of the operations, resource planning and operations structures as well as the development of critical and analytical skills are incorporated in the Box Hill DSM course.
Businesses that fail to educate their managers and who therefore do not have competence in these areas, will find their weakness gives their competitors free runs. Untrained managers are unlikely to recognise the requirements for sustaining a profitable operation, or make sound judgments.
"The vision at Box Hill for the DSM course is that it will draw directly on the experiences facing management today, along with the impact of a rapidly changing and dynamic market - a market which is technology driven, highly competitive and customer oriented," says John Bodo.
A reactive management style may have been acceptable in the past but is no longer appropriate. Any mediocrity in management will cost a company dearly as it faces competition that gives no quarter.
The benefits of properly focused management training that develops business skills will create line managers who are prepared to devolve day to day management issues to responsible subordinates. This enables them to become innovative and proactive, capable of contributing significant value-added solutions to senior management.
Mr Bodo says: "They are a vital link in the management team, providing an influential interface with operations staff. Line managers can also become drivers rather than receivers in the management process.
"A 10 per cent improvement in terms of margins achieved is not an unreasonable expectation for a manager trained and equipped to be more proactive and innovative in achieving an increase in the bottom-line result.
"For example, a business turning over $2 million at a margin of 20 per cent achieves a $0.4 million contribution to profit. A 10 per cent improvement through management training, will realise an additional $0.2 million - an impressive return on investment."
The two-year DSM course is flexible. Not only is there recognition for prior learning, but a custom-tailored course can be arranged.
A special short course, Understanding the Operations Environment, is available for organisations that need to develop staff in sales, marketing and administration roles. A concentrated course for national companies is also available.
The 600-hour course consists of nine units of three to five modules each. A certificate is awarded at the end of the first year and the diploma on completion. Each year costs $2600 and about 80 per cent of the students are sponsored by their companies.
© 1996 The Age