Private RTOs and their networks hunkering down instead of transparency: Anti-leveraging.


copyright-symbols-and-rules-you-need-to-know-04 2015

Intellectual Property of Dr. Bruce D. Watson, DEd Melbourne and attributed authors as noted.

For Private individual use. All rights reserved.


We need to lift the horizons beyond the Public – Private Registered Training Organisations discourse!

As Private RTOs, in particular, come under more and more scrutiny, watch the Private Providers and their networks hunker down.

It is not about denigrating training provision by private registered training organisations (RTOs) – though it must be accepted there are rogue operators using and profiteering from the tax payer funded market.

Nor is it seeking to insulate TAFE Institutes from competition from Private RTOs; which can add useful diversity, innovation and choice to the overall system.

Some Private RTO LinkedIn, Groups and similar, will become closed membership and anyone not ‘towing the preferred line’ will be excluded.

And, remarkably, it seems that they will think that this will help their case and cause.

*What is it, that needs to be hidden?

If ever there was a time for a refreshed and realistic view in the VET System, it is now. There are fundamental flaws in the VET System. The time is right for Private RTO transparency not ‘hunkering down’.

Watch the private college/RTOs associations use the opportunity to show how much they have (not) been doing and flexing their muscle in press releases to try and avoid being tainted themselves, well after the event – “We will de-register any college that etc., etc.” It begs the question, “What checks and balances have been in place by private college/RTOs associations on their membership base prior to the recent events?”

Guided reading:

Extracts from: Creating Reciprocal Value Through Operational Transparency
Ryan W. Buell, Tami Kim, Chia-Jung Tsay, 2014,

Recent studies have begun to tackle the effects of operational transparency, which describes how operating processes are revealed to consumers (Buell and Norton 2011, 2013).

A growing body of experimental research documents the perceptual benefits of showing customers the work conducted on their behalf during service transactions. Revealing the delivery process can improve perceptions of the service provider and of the experience (Buell and Norton 2011, Mohr and Bitner 1995, Morales 2005). An understanding of the time and e↵ort involved can enhance perceptions of outcome quality (Chinander and Schweitzer 2003, Kruger et al. 2004); moreover, visual information can influence and even dominate more relevant metrics of quality (Ambady and Rosenthal 1993, Benjamin and Shapiro 2009, Rule and Ambady 2008, Tsay 2013, 2014).

While transparency may enhance consumer perceptions, a longstanding tenet of operations theory is that contact between consumers and producers diminishes efficiency and production performance (Chase 1978, 1981). Accordingly, organizations often aim to bu↵er their core processes from such environmental disturbances (Thompson, 1967) and to assert greater control over the
process when consumers are likely to introduce uncertainties (Tansik and Chase 1983).

Furthermore, transparency can reduce efficiency by inducing workers to revert to codified but less effective practices (Bernstein 2012), and disrespectful interactions may demotivate workers, undermining their engagement and job performance (Grandey et al. 2004). More recent research suggests that these findings are equivocal; when provided with opportunities for respectful contact with the beneficiaries of their efforts, workers may experience prolonged motivation (Grant et al. 2007), and feel empowered and more satisfied with their jobs (Hartline and Ferrell 1996, Snipes et al. 2005).

The current experiments, conducted with customers and employees in food service contexts, serve as the first empirical investigations (i.e., information gained by experience, observation, or experiment) that support the notion that operational transparency, in the form of access to visual information about service processes, improves both service quality and efficiency.

While other work has hinted at ways in which operational transparency could promote positive subjective experiences for consumers, we find that transparency introduces the possibility of reciprocal gains (Cialdini 2009, Regan 1971, Tidd and Lockard 1978) for both consumers and producers: more positive interactions, greater worker satisfaction, and higher levels of both perceived and actual work performance.

Furthermore, our work highlights the ways in which having reciprocal access to visual information – through operational transparency – generates a positive feedback loop through which value is created for producers and consumers alike.

These findings hold particular promise as significant value may be created and captured collectively, without requiring extensive investments or adjustments to existing operating systems, and without incurring the individual and organizational costs often associated with traditional monitoring strategies and training programs.

….Understanding the contextual factors and boundary conditions that influence the effects of operational transparency on service outcomes remains a fruitful area for future research. Open questions abound. For example, while the present work explores the impact of transparency without interaction, the net effect of interactive operational transparency, in which customers and employees can directly communicate with one another, has not yet been explored. On the one hand, interaction may facilitate information sharing, which could mitigate rework and improve efficiency, while promoting familiarity among customers and employees. On the other hand, interaction may be distracting and foster negative exchanges, worsening experiences and diminishing efficiency.

Another open question is the persistence of these effects. While our results were consistent throughout our period of analysis, the long-term effects of operational transparency among customers and employees remain undocumented. While operational transparency may not foster improvements in all circumstances, our results suggest that by leveraging it to grant producers and consumers reciprocal
access to visual information, organizations have the potential to tap into a virtuous cycle that enhances both perceived and objective service performance.


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