Transcript Defining the Challenge

Transformation: The Case for Building a
Competitive Workforce Through
Strategic Partnerships
Presentation
December 3, 2013
Workforce Professional Development Academy
Leadership Training
Orlando, Florida
_______________________________________
Wes Jurey
•President & CEO, Arlington Chamber of Commerce
•Chair. of the Texas Workforce Investment Council
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“If the pace of change inside the
organization is slower than the pace of
change outside the organization…
the end is near.”
Jack Welch
Retired CEO
General Electric
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Premise
Pace of change, driven by globalization, is unprecedented
It has created an intense, globally competitive environment
driven by innovation
This has resulted in significant economic change, which
demands both strategic and organizational change
Intellectual capital (quality of workforce), as developed
through our education and workforce training systems, will
define our competitiveness
Attracting, developing, and retaining a competitive
workforce demands systemic change based on strategic,
collaborative partnerships
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What are we going to talk about?
Understanding economic development
Understanding the forces driving change
Understanding the changing structure of the U.S.
economy and its effect on our workforce
Shaping our response: Defining our challenge
Developing strategic partnerships among
government, education and business
Selling change
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Cluster Theory
(Understanding Economic Development)
Wealth generating cluster
Aligned with integrated suppliers & service providers
(wealth recirculation)
Supported by economic foundations:
Public & regulatory policy
Access to capital
Access to Infrastructure
Access to Technology
Trained, Educated, Competitive Workforce
Dependent upon
Mobility
Logistics & Distribution
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Four Forces Driving Change
1.
2.
3.
4.
Globalization
Technology and Telecommunications
Regionalism
Sustainable Development
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The Impact of Globalization
We won the cold war – capitalism prevailed; and in the
process we created 3 billion new competitors for the
world’s markets and resources.
The U.S. is 4% of the world’s market, consuming 26% of
the world’s resources.
Most of the world’s natural resources, people and capital
are somewhere else.
Half the world’s population lives on < $2/day
1 billion people live on < $1/day
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Does the Global Economic Slowdown Matter?
Percent of 2011 Revenue Outside U.S.
YUM Brands 70%
Wal-Mart 26%
IBM 64%
Boeing 41%
Intel 84%
General Electric 54%
Bank of America 20%
Ford 51%
Dow Chemical 67%
Microsoft 46%
Apple Inc. 61%
JNJ 56%
Caterpillar 64%
Dell 48%
ExxonMobil 45%
McDonalds 66%
Amazon 45%
General Motors 46%
Nike 50%
Hewlett Packard 65%
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Technology & Telecommunications
Technology and innovation have
historically been the drivers of economic
development
The internet, discovered in a federal lab,
is the single greatest factor driving and
enabling global competition.
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Disruptive Technology What it is, why do I care?
Advanced Oil & Gas
Exploration
Renewable Energy
Advanced Materials
3-D Printing
Energy Storage
Next Generation Genomics
Autonomous Cars
Cloud Technology
Internet of Things
Automoation of Knowledge
Work
Mobile Internet
Hydraulic fracking, creates $4 trillion
in new oil & gas
Wind & solar, new energy sources &
declining prices
Nano Particles
Make plastic products with ink-jet
printing techniques
Batteries & Capacitors
DNA sequencing, gene mapping
Robot cars, sensors in roads
Server farms serving 2.7 billion
internet users
Weblinking devices, HIT
Work activity displacement, all
occupations
Smart phone Interconnections, 24/7
workers
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Regionalism
The urban landscape has spawned economic
regions, irrespective of political or geographic
boundaries.
Globally competitive regional economies demand
intergovernmental collaboration, and effective
public/private sector partnerships
Effective regional collaboration requires neutral
conveners and nontraditional approaches
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The Changing Face of the Labor Market
Structural Transformations
New Business
& Supply
Chain Practices
Globalization
Demographics
Regional
Tradable Skills
& Occupational
Blending
Labor
Market
Economy
Innovation
Technology
Energy
U.S. Economy
Credit &
Capital
Telecommunications
Internet/Social Media
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Sustainable Development
We are running out of natural resources – we face water and energy
shortages based on increased demand and dwindling supply
Federal entitlements that became competitive grants are becoming
seed and venture funding, to enable and incentivize collaborative
capacity development within regions, rather than ongoing support for
programs and projects
Public policy has to focus on renewable resources in a consumption
based economy
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The Changing Structure of the
US Economy
Fundamental changes in the U.S. and global economy are
ongoing;
Until mid- 2001, the U.S. experienced the strongest growth
and development in history –record lows in unemployment
and record growth in per capita income;
Fortune 500 companies made up 26% of nonagricultural
workforce 40 years ago and those firms have lost over 12
million jobs; and
In the past decade, medium and small companies
accounted for all of the net job growth across the country.
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1980 Fortune 500: Top 25
Exxon
General Motors
Mobil
Ford Motor
Texaco
Chevron
Gulf Oil
IBM
General Electric
Amoco
ITT Industries
Atlantic Richfield
Shell Oil
US Steel
Conoco
DuPont
Chrysler
Tenneco Automotive
AT&T Technologies
Sunoco
Occidental Petroleum
ConocoPhillips
Procter & Gamble
Dow Chemical
Union Carbide
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2013 Fortune 500: Top 25
Wal-Mart Stores
Exxon Mobil
Chevron
Phillips
Berkshire Hathaway
Apple
General Motors
General Electric
Valero Energy
Ford Motor
AT&T
Fannie Mae
CVS Caremark
McKesson
Hewlett-Packard
Verizon Communications
UnitedHealth Group
J.P. Morgan Chase & Co.
Cardinal Health
International Business Machines
21Bank of America Corp.
Costco Wholesale
Kroger
Express Scripts Holding
Wells Fargo
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Maintaining Our Competitive Workforce
Unemployment rate has fallen to 7.3%
from 10% in 2009
Business has added 7.6 million jobs over
the same time
However, Long term unemployment is
up 213% over the same time!
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Maintaining Our Competitive Workforce
What Kind of Jobs Are Coming?
Demand for skilled workers will only intensify; 42% of U.S. jobs today require
technical or academic degrees, up from 29% in 2000
What Kind of Workers Are Needed?
All but one of the top 10 business sectors that have the fastest employment growth
are service sectors
 2 are in social services, 2 are in health care, 3 are in information technology, 2 are in other
services, and 1 is in utilities
Where Will They Come From?
A potentially untapped workforce
 According to BLS, in addition to “officially” unemployed Americans, more than 75.7 million workingage adults are not participating in the workforce
 Another 24.2 million are “part-timers” potentially interested in working increased hours
 Another 2.3 million are marginally attached
SOURCE: U.S. Bureau of Labor Statistics
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How Has Global Competition
Reshaped the Workplace?
Automation, to drive productivity, is responsible for
more jobs lost than outsourcing
Outsourcing has penetrated higher skilled – higher
paid sectors (example: engineers in India,
comparably trained, make 20% of U.S. wage)
Lack of technically trained workers has escalated
wages in U.S., increasing the speed at which jobs
move offshore
Industry is consolidating to areas of U.S. where
they can remain competitive
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What is IT?
Is this IT?
Shaping our Response:
Defining Roles & Missions
Premise: Education is workforce development, which equals
economic development
Business – industry defines both the challenge and need
(demand) putting capital at risk to create wealth and jobs
Education – provides the skills and knowledge (supply)
required to succeed in marketplace
Government – workforce system moving from talent
placement to talent development. Determines public policy,
establishes regulatory framework, funds infrastructure
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Defining the Challenge:
We’re 4% of the world’s population
3 billion people in China, India, Russia – 10%
highly educated = 300 million
300 million people in U.S. – 10% highly
educated = 30 million
And that doesn’t count the rest of the world
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Defining the Challenge: We’re
projected to lose population to 2050
12 million undocumented workers
+20 million projected shortages from retirement
32 million shortfall to fill current jobs!
(Is it time to resolve immigration?)
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Defining the Challenge: Educational
attainment levels for the majority minority
Percent of high school graduates ages 25-29
in the U.S.
Anglo – 93%
Black – 87%
Hispanic – 53%
Drop outs in the U.S.
1 every 29 seconds, 6000 each school day
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Defining the Challenge:
Tech training isn’t cool
Manufacturing was 49% of U.S. GDP after
WWII – today it is 6-8%
Lack of qualified technically trained workers is
driving jobs offshore
Scientists are critical – but so are machinists
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Defining the Challenge:
Early childhood needs attention
The high school graduating class of 2026
entered the public education system this
fall
It’s a 13 year production cycle
Kids are born prepared to learn
3rd graders who can’t read seldom catch
up (and generally drop out)
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State & Regional Response
Moving from Hunting to Gardening (slowly)
Focusing on Industry Clusters
Emerging Clusters of Knowledge & Competency
Asset Mapping – linking assets
Hubs & Nodes – understanding the value chain
Hubs – sufficient critical mass to drive development
Nodes – support development with complementary process
Moving from taking the order to anticipating the
order
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Developing our Commercialization
Infrastructure
Fostering applied research – commercializable
discoveries
Establishing industry/academic partnerships
Venture capital formation
Business & technical assistance
Entrepreneurial development
It’s How Northern California Became
Silicon Valley”
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“The successful organizations of the
next decade will be those who learn to
collaborate and build partnerships.”
Tom Peters
Author
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Developing Strategic Partnerships
Relationship Building – must take place at all levels
Engagement – integration of employers (and the
organizations that represent them) with public, higher
education, adult education, publicly funded workforce
investment, voc-tech, post secondary
Importance of Systemic Change (not MOU’s)
Incentivize
Open discussion of the “M” word
Foundation for partnership based on Trust
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Lessons Learned from National
Workforce Initiatives
Challenge to sustain a grant funded approach; funding must be
integrated in operations of partners at all levels – state, region,
local
Challenges posed by existing public policy – need to resolve
and align at federal, state, local levels
Focus should be to develop replicable, sustainable, scalable
models
Successful models based on collaborative, cooperative
partnerships
Importance of organizational capacity in support of business
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leadership and engagement
Why is Employer Engagement
a Challenge?
Employers don’t use or understand the workforce
investment system; aren’t engaged with education
Employers don’t care about the public policies that define
systems they don’t use or are not engaged in
Employers are hard to reach by educational institutions
and other workforce development agencies who try to
engage them one at a time
Need to engage employer intermediaries – they get paid to
organize employers
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Systemic Change: “Walking the Walk”
The path to strategic partnerships
The tipping point
Focus on commonality
Define the relationship(s)
Importance of full disclosure
Integrate your organizational charts
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How to Engage Partners
Start at the top
Face to face
Full disclosure (open kimono)
Defined case for support
Put the “M” word on the table (face up)
(No one said it would be easy)
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When To Engage
At the beginning
In the planning stage
In the selling stage
In the implementation stage
In the evaluation stage
(This isn’t your father’s MOU)
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Who To Engage
Business:
Chambers of Commerce
Economic Development Corporations
Trade Associations
Business Roundtables
Innovation Intermediaries
Education/Workforce Investment
Early Childhood/Pre-K
K-12
Adult Education and All Postsecondary
Workforce Investment Boards
Government
City
County
State
Federal
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What You Do When You Engage
Plan
Organize
Staff
Direct
Evaluate
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Selling Change:
Your Message Matters
“Every child in America deserves an
opportunity to learn in a great school with
a great teacher, preparing them for life;
in a crime free drug free atmosphere,
supported by parental involvement.”
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Ten Commandments
Simplicity
Brevity
Credibility
Consistency
Novelty
Sound & Texture Matter
Speak Aspirationally
Visualize
Ask a Question
Provide Context/Explain Relevance
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Positive Messages
A child’s education everywhere should
prepare them for life anywhere
We need better pay for better teachers
We need parental involvement in our schools
It’s what students learn – not what you teach
– results matter
We need to go back to basics
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Things You Can Do…
Define the convener
Define the incentive – for each partner
Identify and define your economic drivers/industry clusters at state
and regional levels
Identify and define the primary stakeholders—your potential
partners.
Define your expectations of them, and what they can expect from
you – discuss the “M” word
Educate members, funders, investors, constituents, public
Remember: employer organizations provide a structured, organized
framework for employer engagement and involvement.
Get started.
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There is nothing stronger than the heart
of a volunteer”
Colonel Jimmy Doolittle, WWII
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