Board’s eye view: Speaking from experience

Terry Morgan

Ask Terry Morgan about the value of apprenticeships, and you’ll quickly discover you’re talking to a man with first-hand knowledge. His working life began as a 16 year-old engineering apprentice in the UK car industry. It’s a career that’s taken him from the manufacturing floor to the board room, with managing director positions at both Land Rover and BAE Systems and the top job at Tube Lines.

Throughout his career Terry has upheld a keen interest in skills, urging the view that training is a key ingredient to business productivity. A past Board member of the Qualifications and Curriculum Authority, he sits on both the CBI London Regional Council and the Gateway to London partnership. Terry also Chairs the London First employers group and is a member of the London Skills and Employment Board (LSEB). Later this year he takes up the presidency of the Chartered Management Institute.

Now Chairman of Crossrail, Europe’s largest civil engineering project linking areas east and west of London with a dedicated train line through the Capital, he is as passionate as ever about investing in quality training.

“We’re building a world-class, affordable railway that will bring 1.5 million people within a 60-minute journey of London’s centre. During the construction peak we will employ more than 14,000 people, either in-house or through direct contracts. We estimate the supply chain will support three times as many jobs.

A crucial part of the project’s success rests on creating 42 kilometres of new train tunnels below ground. “We need people with the right skills to achieve this, but we also want to leave a lasting training legacy. This is why we are planning, with help from the Skills Funding Agency, to invest in a Tunnelling and Underground Construction Academy (TUCA) in east London.

“With our construction partners and professional training bodies, we will develop new qualifications that have an enduring impact on industry skills, and I am delighted that we recently announced plans for 400 apprenticeship places.”

Terry also chaired a successful bid for the Railway Industry Association to develop a national skills academy for railway engineering. While still at the business planning stage, expectations are for the academy to have several regional centres, with one in London. By co-locating with TUCA, this will give the Capital an unrivalled comprehensive training offer for railway engineering skills.

The London push on apprenticeships

As a member of LSEB, Terry also backed negotiations with the Department for Business Innovation and Skills for more apprenticeship places. The consequent agreement from the Skills Funding Agency is adding an extra £14m of funding, giving the Capital scope to support 4,000 more places than originally planned.

While the big win is a success the challenge is still to come, as Terry explains: “We have much work to do to get engagement with employers and convert this opportunity into something real.

“Peer pressure will help shift employers’ mindsets. Many employers shy from offering more apprenticeship places because they don’t think they can guarantee jobs. They need to have faith that investing in apprenticeships brings future value and competitive advantage.”

Terry argues from a clear business viewpoint, but does not overlook the personal, intrinsic satisfaction, adding: “Looking back on my career, one of the areas I feel most proud of is my commitment to training, especially apprenticeships and investing in young people.

“When I joined Tube Lines in 2002 we had difficulties with skills shortages. Retention rates were not good and, as a result, we were not meeting objectives well enough. So we invested in a top spec skills centre. When I moved on seven years later, there was no shortfall in well-trained people.”

Returning to the task ahead Terry adds: “As well as lobbying from training enthusiasts like me, we will also need a convincing marketing campaign to get these 4,000 extra places filled. And we need the support in place that will attract people and convert them into apprenticeship candidates.”

Ready for the up

Speaking more broadly about skills in London, Terry notes: “The Capital’s labour market characteristics are distinctly different from the rest of the country. As a world city we lead the way in many industries including finance, insurance, law and media. London therefore has a comparatively high number of people with qualifications at NVQ 4 and above.

“Both as a global business hub and as main tourism and leisure destination we have large demands on our service and transport sectors. We have a lack of people with qualifications up to NVQ 4, and we need to create a skills ladder to help people advance.

“There’s much optimism about London’s potential for growth and recovery as we emerge from the economic downturn. We mustn’t miss the opportunities to grow Londoners’ talents and the extra apprenticeship funding is exactly that.”

Continued Government support

The new Westminster administration’s commitment to apprenticeship training is pleasing news for Terry. “The national target for 50,000 apprenticeships will help kick-start more vocational careers.

“There’s a welcome flexibility with apprenticeships courses today compared with when I did my training. They cover a much wider range of jobs, shaped more towards meeting the skills a trainee needs to gain, rather than being in an apprenticeship for a fixed tenure.

“Of course, the future of other programmes like Train to Gain is less certain. It is likely that we will see a greater responsibility fall to employers. It is a big provision, and we need to understand fully the possible impact of any changes.”

Speaking about other shifts in policy, Terry comments: “Across Government there is a push from regionalisation to localisation. In London, where we have a Mayor with statutory, executive responsibilities for skills and employment, we have to balance the needs of a world class city against local agendas. How we go about setting targets to achieve both needs careful management.

“LSEB is unique in that it draws together a broad church of people with different perspectives on skills and employment services. While this is a great strength and helps us create a rounded strategy, our powers do not extend to funding. Therefore engagement with delivery organisations is critical.

“Crossrail has the potential to bring at least £36bn of economic benefits to the UK. We want Londoners to have the chance to share in that prosperity, and the advantages other regeneration projects will bring. That means getting the future for skills right and turning strategy into substance.”


	Home > E-newsletter > Summer 2010: Board’s eye view: Speaking from experience
Home About Strategy Meetings and minutes E-newsletter Press releases Publications Useful links FAQs Contact us	Board’s eye view: Speaking from experience Ask Terry Morgan about the value of apprenticeships, and you’ll quickly discover you’re talking to a man with first-hand knowledge. His working life began as a 16 year-old engineering apprentice in the UK car industry. It’s a career that’s taken him from the manufacturing floor to the board room, with managing director positions at both Land Rover and BAE Systems and the top job at Tube Lines. Throughout his career Terry has upheld a keen interest in skills, urging the view that training is a key ingredient to business productivity. A past Board member of the Qualifications and Curriculum Authority, he sits on both the CBI London Regional Council and the Gateway to London partnership. Terry also Chairs the London First employers group and is a member of the London Skills and Employment Board (LSEB). Later this year he takes up the presidency of the Chartered Management Institute. Now Chairman of Crossrail, Europe’s largest civil engineering project linking areas east and west of London with a dedicated train line through the Capital, he is as passionate as ever about investing in quality training. “We’re building a world-class, affordable railway that will bring 1.5 million people within a 60-minute journey of London’s centre. During the construction peak we will employ more than 14,000 people, either in-house or through direct contracts. We estimate the supply chain will support three times as many jobs. A crucial part of the project’s success rests on creating 42 kilometres of new train tunnels below ground. “We need people with the right skills to achieve this, but we also want to leave a lasting training legacy. This is why we are planning, with help from the Skills Funding Agency, to invest in a Tunnelling and Underground Construction Academy (TUCA) in east London. “With our construction partners and professional training bodies, we will develop new qualifications that have an enduring impact on industry skills, and I am delighted that we recently announced plans for 400 apprenticeship places.” Terry also chaired a successful bid for the Railway Industry Association to develop a national skills academy for railway engineering. While still at the business planning stage, expectations are for the academy to have several regional centres, with one in London. By co-locating with TUCA, this will give the Capital an unrivalled comprehensive training offer for railway engineering skills. The London push on apprenticeships As a member of LSEB, Terry also backed negotiations with the Department for Business Innovation and Skills for more apprenticeship places. The consequent agreement from the Skills Funding Agency is adding an extra £14m of funding, giving the Capital scope to support 4,000 more places than originally planned. While the big win is a success the challenge is still to come, as Terry explains: “We have much work to do to get engagement with employers and convert this opportunity into something real. “Peer pressure will help shift employers’ mindsets. Many employers shy from offering more apprenticeship places because they don’t think they can guarantee jobs. They need to have faith that investing in apprenticeships brings future value and competitive advantage.” Terry argues from a clear business viewpoint, but does not overlook the personal, intrinsic satisfaction, adding: “Looking back on my career, one of the areas I feel most proud of is my commitment to training, especially apprenticeships and investing in young people. “When I joined Tube Lines in 2002 we had difficulties with skills shortages. Retention rates were not good and, as a result, we were not meeting objectives well enough. So we invested in a top spec skills centre. When I moved on seven years later, there was no shortfall in well-trained people.” Returning to the task ahead Terry adds: “As well as lobbying from training enthusiasts like me, we will also need a convincing marketing campaign to get these 4,000 extra places filled. And we need the support in place that will attract people and convert them into apprenticeship candidates.” Ready for the up Speaking more broadly about skills in London, Terry notes: “The Capital’s labour market characteristics are distinctly different from the rest of the country. As a world city we lead the way in many industries including finance, insurance, law and media. London therefore has a comparatively high number of people with qualifications at NVQ 4 and above. “Both as a global business hub and as main tourism and leisure destination we have large demands on our service and transport sectors. We have a lack of people with qualifications up to NVQ 4, and we need to create a skills ladder to help people advance. “There’s much optimism about London’s potential for growth and recovery as we emerge from the economic downturn. We mustn’t miss the opportunities to grow Londoners’ talents and the extra apprenticeship funding is exactly that.” Continued Government support The new Westminster administration’s commitment to apprenticeship training is pleasing news for Terry. “The national target for 50,000 apprenticeships will help kick-start more vocational careers. “There’s a welcome flexibility with apprenticeships courses today compared with when I did my training. They cover a much wider range of jobs, shaped more towards meeting the skills a trainee needs to gain, rather than being in an apprenticeship for a fixed tenure. “Of course, the future of other programmes like Train to Gain is less certain. It is likely that we will see a greater responsibility fall to employers. It is a big provision, and we need to understand fully the possible impact of any changes.” Speaking about other shifts in policy, Terry comments: “Across Government there is a push from regionalisation to localisation. In London, where we have a Mayor with statutory, executive responsibilities for skills and employment, we have to balance the needs of a world class city against local agendas. How we go about setting targets to achieve both needs careful management. “LSEB is unique in that it draws together a broad church of people with different perspectives on skills and employment services. While this is a great strength and helps us create a rounded strategy, our powers do not extend to funding. Therefore engagement with delivery organisations is critical. “Crossrail has the potential to bring at least £36bn of economic benefits to the UK. We want Londoners to have the chance to share in that prosperity, and the advantages other regeneration projects will bring. That means getting the future for skills right and turning strategy into substance.”