EMBARGOED _ t. l-TIL DELIVERY CHECK AGAINST DELIVERY
ADDRESS TO STUDENTS RESIDENT
AT THE AUSTRALIAN ADMINISTRATIVE
STAFF COLLEGE MT ELIZA
FEBRUARY 1987
LADIES AND. GENTLEMEN
I AM DELIGHEED TO VISIT THE COLLEGE AGAIN AND TO MEET ALL OF YOU
INVOLVED W: TH THE MANAGEMENT DEVELOPMENT PROGRAM. IT IS NOW
FIFTEEN YZA7A: S SINCE I LAST VISITED THE COLLEGE, AS A GUEST
SPEAKER FROMl THE ACTU, THOUGH FOR THE PRECEDING DECADE I HAD BEEN
A REGULAR VISITOR HERE. SO IT IS A PLEASURE TO RENEW MY
ACQUAINTA1NCE WITH THE COLLEGE AND TO ADMIRE THE WAY IT HAS GROWN.
ON MY EARLIER VISITS TO THE COLLEGE I ENJOYED THE EXPERIENCE OF
ADDRESSING PEOPLE INTERESTED IN IMPROVING THE WAY BUSINESSES,
UNIONS AND BUREAUCRACIES FUNCTION. I KNOW THE COLLEC, IS
CELEBRATING ITS 30TH BIRTHDAY THIS YEAR AND CONTINUES TO PROVIDE
MANAGERS " vI' 2H A HIGH LEVEL OF TRAINING AND INSIGHT INTO THE
CRUCIAL TASvKS THEY CONFRONT.
AND THEY ARE CRUCIAL. INDEED IT IS MY OPINION THAT MANAGEMEN\ T
SKILLS ARE MORE IMPORTANT THAN EVER IN TODAY'S WORLD. AUSTRALIA
IS FACED WI1TH AN URGENT NEED TO RE-STRUCTURE ITS ECONOMY. THE
RECENT SHARP DOWNTURN IN AUSTRALIA'S TERMS OF TRADE IS A TIIIELY
REMINDER THAT WE MUST IMPROVE-THE DIVERSITY AND THE
COMPETITIVENESS OF OUR INDUSTRIES.
OUR OVER-RELIANCE ON PRIM4ARY PRODUCTS AND PROTECTED MANUFACTURING
INDUSTRY HAS PLACED US IN DANGER OF LOSING OUT ON THE ADVANTAGES
OF OUR POSITION ON THE PACIFIC RIM THE MOST DYNA1MIC GROWTH AREA
IN THE WORLD. WE CAN BETTER EXPLOIT THOSE ADVANTAGES IF WE LEARN
TO LOOK OUTWARDS, TO COMPETE, TO EXPORT, NOT JUST IN PRIMARY
PRODUCTION B3UT IN MANUFACTURED GOODS AND IN SERVICES.
WE CAN NO LONGER RELY ON THE INWARD LOOKING POLICIES AND
ATTITUDES OF THE PAST. WE HAVE TO REALISE AUSTRALIA IS A SMALL
ECONOMY RELIANT ON TRADE FOR ITS PROSPERITY.
BUT THE PATH OUT OF OUR DIFFICULTIES IS A LONG ONE.
FUNDAMENTALLY WE N4EED MASSIVE STRUCTURAL CHANGE AND A TIGHT FOCUS
ON THE IMPROVEMENT OF OUR PRODUCTIVE EFFORT. ACHIEVING THAT
CHANGE HAS BEEN A CONSISTENT AND CONSTANT THEME OF MY
GOVERNMErZT'S EFFORTS SINCE WE WERE ELECTED NEARLY FOUR YEARS AGO.
BUT CHANGE ALSO REQUIRES THE CO-ORDINATED AND CO-OPERATIVE EFF~ ORT.
OF ALL SECTIONS OF THE COMMUNITY.
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AND IN PARTICULAR IT PLACES A GREAT ONUS ON MANAGEMENT ACQUIRING
THE SKILLS OF IMPLEM~ ENTING NEW AND MORE PRODUCTIVE METHODS OF
WORK. THIS IS WHY E'DT; CATION FOR MANAGERS IS SO VITALLY IMPORTANT. TO A
VERY LARGE EXTENT IT WILL BECOME THE RESPONSIBILITY OF MANAGERS
TO IDENTIFY AREAS WITH POTENTIAL FOR GROWTH, TO ENSURE THAT
AVAILABLE RESOURCES ARE DIRECTED IN THE MOST EFFECTIVE MANNER,
AND TO ADJUST INDUSTRIES AND BUREAUCRACIES TO THE CHANGED
ECONOMIC ENVIFRGNMENT.
MAY I SUGGEST THREE MAJOR CHALLENGES WHICH FACE PRIVATE SECTOR
MANAGERS IN AUSTRALIA TODAY. I BELIEVE A GROUP SUCH AS THIS IS
WELL PLACED TC CONSIDER AND RESPOND TO THESE CHALLENGES.
FIRST, MANAGER~ S M'UST LEARN TO EXPLOIT NEW MARKETS.
THE SUBSTANTIAL REAL DEPRECIATION OF OUR CURRENCY, IN CONJUNCTION
WITH NOMINAL WAGE RESTRAINT, HAS CATAPULTED AUSTRALIAN INDUSTRIES
INTO AN ENTIRELY NEW MARKET SITUATION.
IN PARTICULAR OUR MANUFACTURERS AND OUR SERVICE INDUSTRIES NOW
HAVE OPPORTUNIT'ES OPEN TO THEM WHICH PREVIOUSLY COULD NOT EVEN
BE DREAMED OF.
BUT THE ESSENTIAL POINT IS THAT THOSE OPPOR~ TUNITIES ARE WORTHLESS
TO BUSINESS, TO THE COUNTRY UNLESS MANAGERS ARE PREPARED TO
BREAK OUT OF rTu: SECURITY OF SERVICING TRADITIONAL MARKETS AND
SEEK OUT AND WIN NEW SALES IN UNFAMILIAR MARKETS.
THE SECOND CHALLENGE IS PEOPLE MANAGEMENT. I HAVE LONG STRESSED
THE VIRTUES OF CO-OPERATION AND CONSENSUS IN PUBLIC LIFE
ESPECIALLY COO'PARED TO THE BARRENNESS OF CONFRONTATION AND
DIVISION. THAT HAS BEEN TE~ E KEY TO OUR APPROACH TO INDUSTRIAL RELATIONS AND
OUR ECONOMIC PERFORMANCE SINCE 1983 BUT IT ALSO HAS AN
IMPORTANT NEW DIMENSION IN MEETING AUSTRALIA'S NEEDS IN 1987.
LAST SEPTEMBER I CALLED A UNIQUE MEETING OF THE PEAK EMPLOYER
BODIES AND THE ACTU TO DISCUSS THE REFORM OF WORK AND MANAGEMENT
PRACTICES. THIS TASK IS NOW URGENT : IT PROVIDES A SURE VEHICLE
TO RAISING PRODUCTIVITY AND THUS PRESERVING OUR NEW
COMPETITIVENESS INTO THE LONGER TERM.
CHANGE IS ALWAYS EASIEST TO ACCOMPLISH WHEN BOTH THE NEED FOR AND
THE CONSEQUENCE~ S OF IT ARE WELL UNDERSTOOD.
THIS NEED FOR GOOD COMMUNICATION IS ALL THE GREATER WHEN
TECHNOLOGICAL CHANGE IS INVOLVED AND IT IS THE MANAGEMENT OF
TECHNOLOGY WHICH IS THE THIRD OF THE GREAT CHALLENGES FACING
AUSTRALIAN PRIVATE SECTOR MANAGERS TODAY.
THROUGHOUT THE US AND EUROPE, BUSINESS MANAGEMENTS ARE
RECOGNISING THAT SURVIVAL AND PROSPERITY DEPEND UPON THEIR
BECOMING MORE INNOVATIVE AND MAKING BETTER USE OF TECHNOLOGY.
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BUT IN AUSTRALXA, WE HAVE BECOME LOCKED INTO TRADITIONAL PRODUCTS
WITH LITTLE SCOPE FOR PRODUCT DIFFERENTIATION. WE HAVE
TRADITIONALLY CONCENTRATED ON USING TECHNOLOGY TO CHIP AWAY AT
WASTE AND INEFFICIENCY THROUGH AUTOMATION AND COST CUTTING, FOR
EXAMPLE WHICH IS AN INADEQUATE RESPONSE TO THE NEED TO RESTORE
COMPETITIVENESS. THERE IS NO SUSSTITUTE FOR IN-HOUSE RESEARCH AND DEVELOPMENT,
WHICH MUST BE; SEEN AS A CENTRAL, INTEGRAL AND CONTINUING PART OF
EVERY MANUFACTURING COMPANY'S OPERATIONS.
AS FOR THE PUBLIC SERVICE, LEST ANYONE IMAGINE THAT WE ARE
FAILING TO PRiACTICE WHAT WE PREACH ABOUT THE NEED FOR IMPROVED
MANAGEMENT, ME POINT IN PASSING TO THE VERY CONSIDERABLE
SUCCESS WE HAVE HAD IN STREAMLINING THE COMMONWEALTH BUREAUCRACY.
I NOTE THAT A NMTBER OF COMM2ONWEALTH ORGANISATIONS HAS SENT
PEOPLE HERE ' TO UPGRADE THEIR SKILLS.
ALL OF US, IN TH1E PRIVATE AND THE PUBLIC SECTORS, MUST WORK TO
DEVELOP A NEW BUSINESS STYLE IN THIS COUNTRY IF WE ARE TO TAKE
ADVANTAGE OF THIE OPPORTUNITIES BEFORE US.
IN HELPING MANAGEMENT MEET THESE CHALLENGES I HAVE OUTLINED,
INSTITUTIONS SUCH AS THE ADMINISTRATIVE STAFF COLLEGE HAVE A
GREAT ROLE TC ? LAY.
THE GOVERNlEIT IS COMMITTED TO ENSURING THAT M4ANAGEMENT EDUCATION
CONTINUES AND EXPANDS IN AUSTRALIA.
HAVING MET YOU TODAY I HAVE EVERY CONFIDENCE YOU RECOGNISE THE
NEED FOR SOUND MANAGEMENT PRACTICES AND ARE WELL PLACED TO
PROMOTE THEM.
MAY I CLOSE THEN BY WISHING YOU GOOD LUCK BOTH IN YOUR STUDIES
HERE AND, EVEN MORE IMPORTANTLY, WHEN YOU RETURN TO YOUR
MANAGEMENT TASX( S IN THE OUTSIDE WORLD.