improving profitability through business-led sector partnerships

Businesses CAN Improve Profitability via …

Michael Baker Manager – Strategic Planning & Innovation Office of Employment & Training Illinois Department of Commerce & Economic Opportunity [email protected] Some slides based on Illinois Sector Partnership Regional Training presented by Lindsey Woolsey, The Woolsey Group & Emily Lesh, Colorado Workforce Development Council

THE WHY: Common vision, common goals for Regional Economic Prosperity

2

Educational Systems

Economic Development

Workforce System

Targeted Demand Sectors`

THE WHAT: A World-Class Talent Pipeline

Agriculture

Healthcare

Manufacturing

Transportation Distribution

Logistics

Sector-Based Career Opportunities Students/Jobseekers

Based on a slide by Maher & Maher, © 2015

© 2015 Maher & Maher

THE HOW:

Presenter

Presentation Notes

Today’s Sector Partnerships: Are industry driven

Are regional, without regard to political boundaries

Are convened by a credible third party

Act as a coordinating body across multiple education, workforce development, economic development and other programs

Create highly customized, highly accurate responses to a target industry’s needs

They are about more than workforce training or education

Treat employers as partners, not just customers

Sector-Partnerships are different from: State & local

workforce investment

boards

Regional or city economic

development boards

Chambers of Commerce

Industry associations

Community College

Advisory Boards

Career pathway employer

groups

Where are they operating?

Established in 2013 by more than 50 businesses and 20 public partners to address common industry issues

Industry-led Sector Partnership in Action: NoCo Manufacturing Vocational and Technical Skills Committee

Education and Business

Collaborating`

Created skill panels for 10 critical occupations to identify key competencies or KSAs (Knowledge, Skills, Abilities): • Assembler • Machinist • Tool/Die Maker/Senior

Machinist • Technicians • Welder/Fabricators • Quality Control Analysis • Engineering Technician • Engineers • Managers • Sales

Industry: What’s the Goal? • Industry Leadership

in developing the agenda, the priorities and the strategies for action.

• Industry Partnership demonstrated in a willingness to collaborate together (B 2 B) and with support partners.

• Industry Commitment in implementing action areas, including commitments of time, in-kind and funding commitments as required to realize goals.

Industry Leadership

“Move industry from

Stakeholders to

STOCKholders” Rick Maher

Skill Gaps - What’s our response? EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT

I. Education ? I. Workforce Development I. Economic Development


I. Education Historically: Train & Pray I. Workforce Development I. Economic Development


I. Education Today: Career Pathways I. Workforce Development I. Economic Development

Designs by


I. Education Career Pathways I. Workforce Development I. Economic Development ?

Designs by


I. Education Career Pathways I. Workforce Development I. Economic Development Historically: Business Attraction

Designs by


I. Education Career Pathways I. Workforce Development I. Economic Development Today: Industry Clusters

Designs by

Industry Clusters


I. Education Career Pathways I. Workforce Development ? I. Economic Development

Designs by

Industry Clusters


I. Education Career Pathways I. Workforce Development Historically: Customized Business Training + Job Matching III. Economic Development


I. Education Career Pathways I. Workforce Development Today: Sector/Industry Partnerships III. Economic Development

Designs by

Industry Clusters

Designs by

Industry Clusters

Sector Strategies Coming of Age: EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT

I. Education Career Pathways I. Workforce Development III. Economic Development

Industry-Led Sector Strategies

Career Pathways

A Single Sector Partnership at Work

A World-Class Talent Pipeline

Agriculture

Healthcare

Manufacturing


Logistics Based on a slide by Maher & Maher, © 2015

Push vs. Pull Supply Side vs. Demand Side

A World-Class Talent Pipeline

Agriculture

Manufacturing


Logistics

Based on a slide by Maher & Maher, © 2015

Healthcare

Service Strategies Aligned to Sector-Based

Career Opportunities

Sectors Sector

Partnerships

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Clusters of companies in a like

industry (need the common

framework)

Employers engaged as partners

(Stockholders) (not just customers)

Shared agenda is opportunity for

growth and competitiveness,

including a skilled workforce

Priorities and activities are

business-driven & community supported

Civic entrepreneurs are key

(it’s about people and relationships)

Dynamic evolution is expected

(vs. one right model)

Regions lead and own;

State provides support and “the right conditions”

Guiding Principles

Role of State Leadership: create right conditions for sector partnerships to effectively serve industry and jobseekers

Shared vision and goals

Good industry data and analysis

Performance metrics tools

Training and capacity building

Communication and awareness

Changes to administrative

policies

Changes to legislative

policies Funding and investments

Shared promising

practices and success stories

State-Regional communication

Strategic Level From:

• Programs and funding streams drive goals and strategies

• Disparate plans, policies, and investments among partners

• Siloed program administration

• Board as functionary

• Transactional, “one-off” employer engagement 41

To:

• Regional workforce, economic, and education needs drive goals and strategies

• Partner’ plans, policies, and investments are aligned to shared targets

• Coordinated, customer-focused talent pipeline development

• Board as catalyst, convener, and champion

• Deep and sustained partnerships with groups of businesses


Service Delivery Level From:

• Business services are localized, single-agency, and focused on labor exchange

• Training investments are individualized and not aligned to growth sectors

• Credential attainment not linked to target sector needs

• Career Center organization and service delivery not tied to career opportunities and pathways in target sectors

• Job placement as goal and service end point 42

To: • Business services are regionalized and

coordinated among partners to deliver diverse solutions

• Training is driven by industry and business needs (Demand-Driven)

• Credential attainment aligned to identified industry needs and targets

• Sector focus reflected in Career Center organization, partnerships, customer flow, and service planning and delivery

• Long-term career development along clear pathways in targeted industry sectors


www2.illinoisworknet.com/partners/sectorstrategies

“In theory, Theory and Practice are the same. In practice, they are not.” - C Reid

44

This slide created by Collaborative Economics, Inc.

46

Data & (Employer) Demand Driven

Current employment

Short-term change in jobs (2-

years) Long-term change in jobs (10-years)

Current & past Location Quotients

Current wages

No. of establishments

Average no. of jobs per

establishment

Job demand projections (growth +

replacements) Occupational data Local knowledge

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KEY DATA ELEMENTS Use as many as you have available

DEMAND

Labor Market Info

US BLS & Locally Gathered Data

Industries No. Employers

No. Employees

Occupations No. Openings: New & Replacement

Commuting Patterns

Supply

Education & US Census

Annual Education Production

K-12 Industry Recognized Credentials Associate’s Degree Bachelor’s & Beyond

Population Demographics

Average Age Gender Ethnicity Educational Attainment 48

DATA DRIVEN-Start with Baseline Analysis

Employer Demand Driven Pull Model

What Occupations

Competencies

Where Proximity to labor pool & training providers

When Expected hire dates

Cycle

How Many Quantity by competencies (credentials)

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Train & Pray

The Data Says, “This Works!”

Neutral Convener Neutral Facilitator

Sector Strategies Recipe

ALERT!

3 VITAL Topics for Sector CEOs to Consider 90 Minute Launch Meeting 3-100 Sector Businesses

3. ESTABLISH A GAME PLAN How are we going to hang together

and organize for real outcomes? What are we going to do together?

2. IDENTIFY PRE-COMPETITIVE ISSUES

What do we ALL need to ensure our companies stay competitive?

1. IDENTIFY SECTOR OPPORTUNITIES What’s going on in our industry,

particularly in this region? What are the big opportunities for growth in our companies right now?

FROM THIS CHAOS… “Hello. I’m from the GOVERNMENT and…”

TO THIS STREAMLINED APPROACH

1 voice Many Employers

Greater Leverage for Change

Sector Partnership

DO’S AND DON’TS

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Will Rogers, Jr.

“I don’t make jokes. I just watch the government and report the facts.”

Milton Friedman

“The government solution to a problem is usually as bad as the problem.”

Sen. Daniel Patrick Moynihan

“The single most exciting thing you encounter in government is competence, because it’s so rare.”

Ronald Reagan

“The nine most terrifying words in the English language are, “I’m from the government and I’m here to help.”

1. Are you satisfied with the quality & quantity of job applicants? 2. Do you know the $ cost of filling positions? 3. Do your current workers have all the skills they need? 4. What key competencies do you need in your workers? 5. What industry recognized credentials do you know & value? 6. What is the source of your “good applicants”? 7. What is the quality of graduates and overall responsiveness from regional education partners and training providers?

8. Are your hiring requirements for each position in line with what you really need?

9. How do you predict personnel needs?