Improving Profitability Through Business-Led Sector Partnerships
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Transcript of 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
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
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.
Skill Gaps - What’s our response? EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT
I. Education ? I. Workforce Development I. Economic Development
Skill Gaps - What’s our response? EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT
I. Education Historically: Train & Pray I. Workforce Development I. Economic Development
Skill Gaps - What’s our response? EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT
I. Education Today: Career Pathways I. Workforce Development I. Economic Development
Designs by
Skill Gaps - What’s our response? EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT
I. Education Career Pathways I. Workforce Development I. Economic Development ?
Designs by
Skill Gaps - What’s our response? EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT
I. Education Career Pathways I. Workforce Development I. Economic Development Historically: Business Attraction
Designs by
Skill Gaps - What’s our response? EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT
I. Education Career Pathways I. Workforce Development I. Economic Development Today: Industry Clusters
Designs by
Industry Clusters
Skill Gaps - What’s our response? EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT
I. Education Career Pathways I. Workforce Development ? I. Economic Development
Designs by
Industry Clusters
Skill Gaps - What’s our response? EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT
I. Education Career Pathways I. Workforce Development Historically: Customized Business Training + Job Matching III. Economic Development
Skill Gaps - What’s our response? EDUCATION, WORKFORCE & 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
A World-Class Talent Pipeline
Agriculture
Healthcare
Manufacturing
Transportation Distribution
Logistics Based on a slide by Maher & Maher, © 2015
Push vs. Pull Supply Side vs. Demand Side
A World-Class Talent Pipeline
Agriculture
Manufacturing
Transportation Distribution
Logistics
Based on a slide by Maher & Maher, © 2015
Healthcare
Service Strategies Aligned to Sector-Based
Career Opportunities
Sectors Sector
Partnerships
36
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
© 2015 Maher & Maher
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
© 2015 Maher & Maher
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
47
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)
51
Train & Pray
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?
DO’S AND DON’TS
58
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?