Kevin Gaitskell General Manager ESP
The Perfect Storm
Focus Who are we? In what context do we operate? What challenges do we face? What is our response? …..and therefore why are we in a perfect storm?
Who are we? One of the worlds largest isolated power systems Australia’s largest combined Transmission and Distribution business Government Trading Enterprise (GTE) Operating in an immature regulated environment (2006) …. operating from the worlds most isolated capital city
Who are we? Network South West Interconnected System (SWIS) 95,000km power lines 787,000 power poles and towers 224,000 street lights 13,500 substations 22,000 new connections People 3000 employees 500 embedded contractors Fee for Service contractors With challenges associated to an aging infrastructure.
In what context do we operate? 0 GDP % Change (yoy)
In what context do we operate? forecast AA1AA2AA3 Total Expenditure ,000 1,200 1,400 1,600 1,800 2, Aus$ millions (real 2011/2012) actualsTrend forecast
What challenges do we face? Labour market Organisation Shareholder value
Labour market #1 Real skills crisis is still to come Employers warn that Australia is in the grip of skills crisis We are running out of skilled workers WA Businesses hit hard by skills shortage Chronic skills shortage hits workforce
Labour market #2 20,000 80, , ,000
Organisation #1 An aging workforce: 10% of line workers expected to retire in 2011/12 Current turn over 9.5% 14.5% leave within 2yrs …why are they leaving?
Organisation #2 Career development opportunities Remuneration Dissatisfaction with roles Organisational culture
Shareholder
Why is this the “Perfect Storm”
What is our response? Culture Capability Capacity Change Program
What is our response? WP Current Operating Culture 2009 WP Target OCI 2013 Industry (Gas/Electric) OCI Actual 2010
What is our response? Our value proposition Retention Recruitment
Come to WA
A final word
Questions