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Deals with issues beyond entry-level training, that is with the next step in vocational education and training reform. That step is needed to support essential changes to the way work is organised and managed. The goal is to enable enterprises to become process-driven and customer-focused so that they can achieve high performance and total quality management. Devolution of responsibility, accountability, problem-solving, and decision-making will be required. These requirements will have an impact on education and training in terms of: schooling to year 12 and the key competencies; full implementation of the Australian Vocational Certificate Training System (AVCTS); labour market programs which include training; an upgraded, middle-level skills system (diploma level); combination of general and vocational education in the higher education system; flexible, post-school education and training; qualification pathways; streamlined processes for setting standards; and improved recognition of prior learning processes.