Donald J. CarstensenSpecial Advisor, Office of the President/COO

Workforce Development, ACT, Inc.

Michigan National Career Readiness Certificate Conference

November 17, 2009

Stand Up For a Skilled Workforce

The brain is an organ that starts working the moment you get up in

the morning and does not stop until you get into the office.

Robert Frost

If the rate of change on the outside exceeds the rate of change on the inside, the end is near.

Jack Welch

Former Chairman and CEO

General Electric Corp.

• Skills Gap

• Preparation Gap

• Belief Gap

• Leadership Gap

Four Challenges

There is a gap between the skills required in a high performance workplace setting and the skills individuals in and seeking to enter the workplace possess.

Disconnect Number 1

The programs of study individuals are choosing to pursue and their preparation are not aligned with the needs of the workplace.

• 4% of students planning to major in computer-related fields of study and IT job opportunities

• 5% of students planning to major in science

Disconnect Number 2

Nearly 1/5 of high school students who plan to major in science do not take three years of mathematics and science courses in high school.

The relationship between course taking pattern in high school and performance in college coursework and on the ACT Assessment is highly correlated.

Disconnect Number 2

There is a disconnect between supply side anddemand side standards.

• Expectations• Focus• Articulation• Alternative credentials

Disconnect Number 3

There is a disconnect between the views of the stakeholders as to the extent and nature of the problem.

– Teachers– Parents– Administrators– Business Leaders

Disconnect Number 4

People seldom improve when they have no other model but themselves to copy after.

Goldsmith

What challenges do employers face?

1. Employees from the “Baby Boom” generation will be leaving the workforce and likely faster than they can be replaced by employees new to the workplace.

What challenges do employers face?

2. Many skills and procedures are not documented. Business history and critical knowledge bases are lost with employee retirements.

What challenges do employers face?

3. The skill requirements and performance expectations for existing positions continue to rise.

What challenges do employers face?

4. The changing nature of the workplace is

•increasing application of technology

•increasing use of group processes

•increasing desire to move the decision-making

prerogative closer to the client or production

transactions

What challenges do employers face?

5. Incumbent employees can require substantial retraining every 5 to 7 years.

What has changed in the workplace?

• The nature of the Workforce is changing

•under prepared/over employed

•aging

•increasing diversity•socioeconomic status divide

What has changed in the workplace?

Employees as narrow specialists

Employees as broad generalists

One occupationfor life

Change in occupationsevery 5-7 years

Job skills acquiredoutside of the

workplace

Job skills acquiredin the workplace

Employees enterworkplace prepared

to be productive

Employees enterworkplace

prepared to learnjob-specific skills

“Knowledge has become the only source of long-run

sustainable advantage, but knowledge can only be

employed through the skills of individuals.”

Lester C. ThurowThe Picture of Capitalism

The Learning Model

Continue building

skills

Assess skills

Skills gap identified

Prepared to

learn

Enter workforce

Select training options

Foundational skills

development

How it works:•Set and communicate clear expectations for workplace preparedness.•Allow multiple entities to focus on building those foundational skills.•Create an induction model to bring those skills in-house.

The Knowledge Supply Chain

Education K-16

Action Steps

• Incorporate skills into curriculum.

• Award NCRC-develop funding strategies.

• Adopt the NAM Skills Certification System.

• Guidance: connecting interest to opportunities.

• Consider recognition strategies.

• Connect to employer community.

Employers•Recommend NCRC to job applicants.

•Incent individual achievement.

If a boy has enough intelligence he should consider studying for the ministry, unless when he goes to the university he is given to carousing, drinking, and wenching in which case he ought to consider law.

J. Collyer, 1761