Sutherland Shire Hub for Economic Development (SSHED) Precinct
SKILL ECOSYSTEMS EXEMPLAR | Belinda Smith, SmithComyn & Associates
for TAFE NSW ICVET
It is all about looking after the little things, making it work, following through on commitments’
Peter Roberts, College Director of Sutherland College
In this case study Sydney Institute Sutherland College and Sutherland Shire Council initiated the precinct called Sutherland Shire Hub for Economic Development (SSHED). The Council’s Economic Development Committee developed a two-pronged strategy to support local economic development.
The first strategy saw the establishment of the SSHED small business accelerator at the Sutherland College, Loftus Campus. The SSHED has just won Australian Business Incubator of the Year for innovation in business development. 76 new jobs have been created and 10 companies now have over $1 million turnovers.
The second strategy was the establishment of the University of Wollongong (UOW) Loftus Education Centre to be co-located in the SSHED precinct. The co-location of Sutherland College, UOW and the SSHED business accelerator is proving a stimulating environment for the growth of business skills and workforce development resulting in increased economic activity. This case study describes an initiative that shares some features of a skill ecosystem.
Impetus
The Sutherland Shire Council through Council's Economic Development Committee
(EDC) undertook comprehensive economic research and identified that the Shire
needed to attract and develop new types of business. According to Council
research there are only a handful of large-scale employers, such as Caltex,
Sutherland Hospital, Toyota, ANSTO and Council. The vast majority of companies
are small businesses, particularly in retail services and light manufacturing.
The Council research indicated that many local businesses are relocating
to other areas for three main reasons:
- to be near suppliers
- a lack of suitable land
- or to access suitable telecommunication infrastructure
In response to this research SSHED was established. The Business incubator/ accelerator is a not-for-profit organisation established in 2003 for companies working in the knowledge industries. Knowledge industry is defined by SSHED as a business that requires an IT infrastructure to receive, process or deliver their work.
Critical to opening free ranging dialogue with partners is the need to explore all goals and opportunities from a range of perspectives rather than from a purely vocational education and training (VET) point of view.
The SSHED provides a nurturing environment where up to 24 innovative small to medium sized enterprises receive the support and mentoring they need to succeed. SSHED aims to support the economic and social development of the Sutherland Shire by fostering the growth of local business and providing new educational opportunities for skill development in the local community. Located in new premises at Loftus TAFE campus, facilities include individual offices, a meeting room, café, reception area and administrative support.
Businesses selected to join the SSHED are charged a monthly rental fee that covers the cost of office accommodation, IT infrastructure, computer usage, and is below the cost of standard commercial office rental. Businesses that graduate from the SSHED can still access SSHED mentoring and training programs.
UOW offers undergraduate programs in Education and Commerce and a part time Masters in Management program. Sutherland College and UOW jointly deliver a Bachelor of Business - Hospitality, and Bachelor of Business - Event Management programs at the Loftus TAFE campus. The UOW and SSHED access the Sutherland TAFE library, gym and student services utilising existing resources available at the TAFE campus for the benefit of the ‘Precinct’. The integration of SSHED, UOW and TAFE programs and services helps stimulate business networking and ideally, innovation.
Credibility
As discussed in the ICVET eZine article What makes a successful
Skill Ecosystem? commitment at a senior level means partner organisations
move towards participation rather than being pulled along. High-level backing
makes negotiating a formal agreement easier, resulting in less reliance
on individual personalities. The Director of Sutherland College is on Council’s
Economic Development Committee, the Board of SSHED, and is involved with
Sutherland Shire Small Business Awards, reinforcing a positive profile that
TAFE has in the local business community. Building credibility develops
confidence and trust in the advice and services of the member organisations
and strengthens their leadership role.
Involvement in activities that initially have little apparent relevance to TAFE or VET delivery is important as it displays a commitment to the hard work of a partnership and enables TAFE to find opportunities in new areas.
Sydney Institute - Sutherland College views Sutherland Shire Council’s initiative as an opportunity to fulfil their commitment to developing community capacity and increase the credibility of Sydney Institute and Sutherland College with the local business community. The high-level support of the College Director and College managers confirms TAFE’s commitment to local business initiatives. A Director from Sutherland Council is on the Sydney Institute Advisory Committee creating mutual high-level commitment within each organisation.
Cultural Match
Sharing organisational values is a significant factor in the success of
any partnership, and identifying whether potential partners share values
is an important first step. Awareness of and commitment to the value of the
partnership and its long-term goals help staff cultivate a positive view
of the partnership.
Critical to the success of the SSHED initiative is the early engagement of staff and being able to communicate the bigger context throughout the organisation; as where the partnership is heading is not always immediately evident.
High-level commitment is essential in formulating and reiterating shared values for a partnership or skill ecosystem across the TAFE college. Senior management at the college communicate the value and values of the SSHED partnership to other staff in the college. The initial investment in SSHED needs to be explained - benefits are not always apparent in the short term, are often unplanned, and immediate benefits not easily quantifiable.
Trust
Ethical practice is important for building trust and an aspect of the partnership development process involves confirming an ethical match between potential partners. Ethical practice reinforces trust according to Director of Sutherland College, Peter Roberts. 'It is all about looking after the little things, making it work, following through on commitments.' A sense of trust between the partners has led Sutherland College to become involved in other business development initiatives. A strong sense of organisational identity helps to readily identify like-minded companies for successful partnerships.
In this sort of initiative the Institute needs to be able to manage risk takers and support them, as some initiatives will not have an apparent or short-term outcome.
The central innovation of SSHED is the concept of increasing the likelihood of business success through networking and communication between tenants. The SSHED provides a nurturing environment for businesses that need initial start-up support and mentoring. Working collaboratively with other tenants is one of the conditions for becoming a tenant.
An example of this collaboration is Marketing tenants working with IT tenants to market their services and/ or products and in return, the IT tenants provide IT support and advice to the marketers. The aim is to fast track the pace of business growth and increase the possibility of success through workshops, networking, mentoring and coaching.
The requirement for tenants to collaborate sets a framework for future industry clusters to grow. Through the involvement of TAFE and the University these could readily become skill ecosystems.
Ownership
The relationship between the three organisations is formal, involves financial
commitments and a Memorandum of Understanding. The partners meet regularly
at SSHED committee meetings and are involved in activities that may not be
relevant to the individual partner but are relevant to the partnership or
important to one of the partners. Supporting each partner to make sure they
succeed is a strong principle between Sutherland College, Sutherland Shire
Council and UOW. Being part of the team involves participating in the long-term
business planning process, which reinforces a sense of ownership and commitment.
Collaboration
Collaboration between the partners is at early stages and is ongoing with discussions about cultivating further small business networks utilising TAFE NSW facilities and infrastructure. Meetings between the partners provide opportunities to explore ideas for further collaboration. The University shares facilities with the SSHED and both access TAFE services and facilities on a fee-for-service basis. TAFE provides some business training for the business tenants with the proximity creating greater opportunities for future collaboration.
Communication
Face to face communication is important for enhancing personal relationships
and strengthening trust. Communication is regular between partners and the
tenants of the SSHED. The partners regularly inform the local community about
SSHED, TAFE and UOW activities in their newsletters and circulars, reinforcing
a sense of cooperation and success.
Critical to opening free ranging dialogue with partners is the need to explore all goals and opportunities from a range of perspectives rather than from a purely vocational education and training (VET) point of view. Involvement in activities that initially have little apparent relevance to TAFE or VET delivery is important as it displays a commitment to the hard work of a partnership and enables TAFE to find opportunities in new areas. Being pragmatic and reliable have been important factors in this high profile initiative. This encourages new capacity building opportunities and innovative services to evolve.
In this sort of initiative the Institute needs to be able to manage risk takers and support them, as some initiatives will not have an apparent or short-term outcome. Identifying measures for this kind of project is difficult as many of the outcomes are unintentional but valuable, such as the increase in respect for TAFE amongst the business community.
Success
Significantly for TAFE, staff have developed a greater sense of responsiveness
and are moving beyond approaches centred solely on delivering mainstream
courses. Staff are adapting more quickly to the external environment. With
business expectations increasing because of this, there is a greater emphasis
on delivering outcomes for industry. Being innovative can be time consuming
and often there are no system rewards, therefore in this project staff keep
long-term objectives in mind to maintain motivation.
The SSHED has provided Sutherland College students with valuable work placement opportunities and a chance for teachers to tap into current industry ideas and develop an intimate knowledge of local skill needs through contact with the tenants, the SSHED mentors and workshops. Seventy-six new jobs have grown from this initiative with more to come. This initiative embeds TAFE NSW in the direct economic development of a local region as well as enhancing responsiveness and flexibility of the staff involved.
See also
The Sutherland Shire Hub for Economic Development website
Skill Ecosystems | A-Z Resources
PARTNERSHIPS AND ENTREPREURSHIP (Research & Exemplars)
