Regional Roundtables Final Aq

Framing the FutureTogetherShared Vision – Shared Goals

Transformation Roundtables

Presented by Barbara Halsey, Executive DirectorCalifornia Workforce Investment Board

PremiseThe pace of change, driven by globalization, is unprecedentedIt 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 competitivenessAttracting, developing, and retaining a competitive workforce demands

systemic change based on strategic, collaborative partnerships

Source: Transformational Forums; Seattle, Washington, November 27-29, 2007

Brazil

Russia

India

China

GDP Growth Rate

Four Forces Driving Change

1. Globalization

2. Technology and Telecommunications

3. Regionalism

4. Sustainable Development


“If the pace of change inside the organization is slower than the pace of change outside the organization…the end is near.”

Jack WelchRetired CEO

General Electric

Transformation is Not a Choice, it’s a Must


Impacts of Globalization

1 billion people live on less than $1/day


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 only 4% of the world’s market yet it consumes 26% of the

world’s resources.Half the world’s population lives on less than $2/day

$2/day

$1/day

http://rds.yahoo.com/_ylt=A0S020mGbAZIMYMAEduJzbkF;_ylu=X3oDMTBybTJwajA5BHBvcwMxMQRzZWMDc3IEdnRpZANJMDg0XzEwNg--/SIG=1i840e1f1/EXP=1208466950/**http%3A//images.search.yahoo.com/images/view%3Fback=http%253A%252F%252Fimages.search.yahoo.com%252Fsearch%252Fimages%253Fp%253DRussian%252BFlag%2526fr%253Dyfp-t-501%2526ei%253Dutf-8%2526js%253D1%2526x%253Dwrt%26w=150%26h=112%26imgurl=www.voanews.com%252Fspanish%252FArchive%252Fimages%252Fxenomax_russian_flag_waving_09jan02_eng_150.jpg%26rurl=http%253A%252F%252Fwww.voanews.com%252Fspanish%252Farchive%252F2002-12%252Fa-2002-12-16-2-1.cfm%26size=4kB%26name=xenomax_russian_flag_waving_09jan02_eng_150.jpg%26p=Russian%20Flag%26type=JPG%26oid=0342a96fe6f27900%26no=11&tt=14814

Defining the Challenge:The U.S. is 4% of the World’s Population

There are 3 billion people inChina,India, and Russiaif 10% are highly educated, that is

There are 300 million people in the

300 million.And that doesn’t include the rest of the world


if 10% are highly educated that’s only

30 million

ChinaIndiaRussiaUnited States

U.S.

is greater than the entire population of

North America.

The top 25% of China’s Population, in terms of IQ…,

330,000,000

ETA Innovation Academy

Source: Transformational Forums; Seattle, Washington, November 27-29, 2007Transformational Forums; Seattle, Washington, November 27-29, 2007

Defining the Challenge: Educational Attainment Levels

California High school drop out rates

Anglos23%African Americans

43%Hispanics

40%1 student drops out of school every 29 seconds6,000 each school day.

Defining the Challenge:

Tech Training Isn’t Cool

Manufacturing was 49% of U.S. GDP after WWII

WWII

% ofTotalGDP

Present Day

Today it is only about 6% - 8%The Lack of qualified workers is driving jobs offshoreScientists are criticalBut so are machinists

“The successful organizations of the next decade will be those who learn to collaborate and build partnerships.”

Tom Peters Author

Collaborate and Build Partnerships

The New Strategic Approach

Development of public policy that supports a talent development system which will secure our economic competitiveness well into the future.

We are committed to:

A vision that we all share. Clearly articulated goals.Soliciting broad input.Continuous engagement and networking between the state,regional, and local partners (Private and Public Sectors).

Developing Strategic Partnerships

State and Regional PartnershipsEngagement – integration of employers with public, higher education, adult

education, publicly funded workforce investment, voc-tech, post secondary

Systemic Change

Incentivize actions that make a difference

Higher Education

IndustryWorkforce

SystemOther

AdultEducation

Talent Development

A comprehensive strategy to develop regional talent development systems

that drive regional economic competitiveness, job growth and

new opportunities for American workers.

Pre-School, K - 12

Lifelong Learning

Job Training vs. Talent DevelopmentJob Training Transactional Individual Jobs that exist NOW Immediate results Workforce System

operates more independently

Talent Development: Strategic Sector focused Designed to CREATE

jobs Longer-term,

sustainable results WIS operates with and

through partners Transformative in

nature

“Someone has got to do something …

And it’s just incredibly pathetic that it’s got to be

us.” The Grateful Dead

Workforce Developm

ent

Economic Developm

ent

Education

Collaborate

Coordinate

Innovate

Business Demand

Talent Development System

A System Based Upon Data An effective Talent Development

System must support the connection between workforce development, economic development, and Education organizations.

The basis that can compel these connections is data.

The value of data is enhanced by the different perspective each partners brings to its interpretation.

The data must lead to insights about the economy which prove meaningful to business and must be validated with leaders in industry.

“We are drowning in data and starving for insight.”

“Clusters of Opportunity Methodology” is not simply more data.

Regionalism“ The Worlds top competitors are not cities, states, or countries per se, but regions. Economic regions are defined not by political boundaries, but economic resources such as industry concentrations, labor markets, and common infrastructure.”

-“Building Regional Competitiveness Through Economic Innovation”,

Alliance for Regional Stewardship

The North Coast ExampleThe following slides capture the

experiences of the North Coast in putting the methodology to work.

CA Workforce Investment BoardTargets of Opportunity

July 26, 2007

Source: Humboldt WIB Slide Show for State Board Meeting 7/26/07

Why Do Another Study? We noticed disconnects, a mythology, a

barrier to workforce and economic goals.

• “There are no jobs here.”• But employers desperate for talent…

• “The timber and fishing industry are dead (There’s nothing else).”• But we have fast growing entrepreneurial companies …

• “Our children are leaving.”• But data contrary, leaving home can be good, coming back for Quality of Life…

• “There’s nothing up there but dead fish and dead trees.”• Why would anyone want to invest in us…?


Why Do Another Study? (Cont.)

Common notions can influence decision making with long term implications.

Business and community leaders had been asking for this information for a long time.


Why do This Study? Economic development sophisticated in

Humboldt.• Export industry clusters identified• Success on the ground with cluster development,

business incubation and funding• Strong entrepreneurship and innovation

How to get at careers, link clusters needs to actual program design, job seekers, training, etc. not so clear.

Our region as defined by state didn’t fit for us, but the Clusters of Opportunity work looked excellent and we wanted to connect with the Regional Economies Project.

A locally-defined region becoming apparent.


Redwood Coast Region: People and commerce moves from the mountains west


What are Targets of Opportunity?


5 Bells To Ring: How Targets of Opportunity Were Identified

CRITERIA INTERPRETATION

Expanding Opportunity

JOB GROWTHShows how various industries have weathered market forces and their subsequent employment generationFIRM GROWTHGrowth in firms can indicate a change in organization of an industry, a surge in local entrepreneurship, or attraction of outside investment to the region

Growing Quality

JOB QUALITYHigh average payroll per employee relative to the regional average indicates a sector with relatively high productivity per employee. Additionally, pay is a reflection of job quality and indicates the amount of training and skill required to perform the job

Improving Competitiveness

STRONG AND/OR GROWING REGIONAL SPECIALIZATIONA concentration of greater than 1 indicates that employment in the region is more specialized in the industry compared with U.S. or California. Specialization generally reflects competitiveness and outward orientation.

Career Potential

OCCUPATIONAL DISTRIBUTION AND DYNAMICSOccupational opportunities spread across higher, mid, and lower-levels, suggesting possible pathways for upward mobility. Occupations that are highly-concentrated and/or fast-growing are of particular interest.

Key LinkagesIMPORTANT RELATIONSHIPS AND COMMON NEEDSRelated to other sectors in important buyer-supplier or complementary partnering relationships. Share a common workforce, markets, or others.


Six Targets of Opportunity on the Redwood Coast

Diversified Health Care Building and Systems Construction and

Maintenance Specialty Agriculture, Food, and Beverage Investment Support Services Management and Innovation Services Niche Manufacturing


Surprised at What We Found

• 6 fast growing industries• 53% of private sector payroll and

almost 40% of jobs• Grew jobs 37%, new firms 23% and

wages up to 26% (compared to 4%, 1.5% and 6% in the overall regional economy)

• All pay above the median, and fast rising


Surprised at What We Found (Cont.)

• All with appealing, robust career spans…All have people working in occupations that are projected to be among the top 50 fastest-growing jobs in the region in the coming decade.

• Some familiar, but grouped in a more powerful way

• Some new export opportunities that we hadn’t seen before

• Some totally new industries for economic/workforce development to address


Humboldt Export Industry Clusters: 9 of 7 Growing

Dairy and Ranching

623

Manufacturing

3,851

Tourism

11,414

Information Technology

168

Arts and Culture

2,994

Specialty Agriculture

3,597

Education and Research

1,742

Fishery and Aquaculture

6,350

Forestry & Logging

6,160

-1

0

1

2

3

4

5

6

7

-0.06 -0.04 -0.02 0 0.02 0.04 0.06 0.08 0.1

Average Annual Growth (1990-2002)

Conc

entr

atio

n (1.

0 is

sam

e as

CA

)


Targets of Opportunity are 51%+ of Private Sector Wages in All Counties

Targets of OpportunityShare of Total Private Sector Wages by County

58% 58%

51% 51%

43%

0%

50%

100%

Mendocino Del Norte Humboldt Siskiyou Trinity


Occupations & Skills Research

Staffing Patterns Occupations

Identify occupations within each 4 digit NAICS Code

Refine spreadsheets for each cluster

Analyze staffing patterns to identify high, medium, and low-wage distribution

Develop chart for each cluster depicting wage distribution

Develop data tables of high, medium, and entry-level wage occupations

Use projections to identify occupations with growth potential

Identify STEM occupations

Use the CREP Consultant Tool Box skills template to pinpoint most common skills, tasks, knowledge, abilities, work activities

Develop chart or tables showing skills data

Compare skills set using “Fun with O*NET” graph

Skills Final Report

Summarize findings using occupational mapping

Display key components of a cluster

Include major industry sectors, support sectors, key occupations, and infrastructureSource: Labor Market Information Division, EDD

Health Science and Services

Industries

Support Sectors

Occupations

Higher Level

Mid Level

Entry Level

Infrastructure

Employment Growth 1990 - 2002: 80,000

jobs (32%)Total Jobs: 330,400

Average Wage: $75,300

Doctors' Offices

Emergency and Relief Services

Home and Residential Care

Services

Research Universities

Specialized Clinics

Biomedical Research

Hospitals and Acute Care

Medical Equipment and Supplies Mfg

Education and Training

Scientific Research and Development

Medical and Diagnostic Labs

Pharma and Medicine Mfg

Family and General Practitioners

Medical Scientists Microbiologists Biochemists and Biophysists

Medical and Clinical Lab Technicians

Psychiatric Technicians

Dental Lab Technicians

Biological Technicians

EMT's and Paramedics

Nursing Aides, Orderlies and Attendents

Personal and Home Care

Aides

Physical Therapist Aides

Psychiatric Aides

Pharmacy Aides

Example from Bay Area Region


Diversified Health Care

33%

28%

39%


Significance of What We Found

The data and input… Supported anecdotal evidence Debunked myths Far more compelling than we expected Foundation for BIG thinking

• Sustained structural shift in our economy

• Tremendous opportunity

• Inspirational…reason to look forwardSource: Humboldt WIB Slide Show for State

Board Meeting 7/26/07

Immediate Impacts of What We Found

Got into action right away on a few projects that came up in focus groups, as the report evolved…regional branding, trucking backhaul coordination, etc.

5 new private sector CEO-types stepped forward to be on the WIB the week after report was released.

Moved the WIB beyond WIA-compliance to Engagement.


Immediate Impacts of What We Found (Cont.) Compelling platform for…

Regional collaboration Stimulating training institutions to change Engaging and connecting businesses Developing useful tools that connect

people to careers Evolving economic and workforce

development thinking


To stay current on the changing economy:

www.dof.ca.gov/research/research.php

The Department of Finance conducts economic, financial and demographic research and provides monthly updates and projections for California’s economy.

www.labor.ca.gov/panel The CA Economic Strategy Panel’s website provides regional and

statewide economic reports, industry cluster studies, and monographs on key economic and workforce issues. The Panel’s website also has links to a broad range of economic data.

www.labormarketinfo.edd.ca.gov/

LaborMarketInfo is the website of the Employment Development Department’s Labor Market Information Division (LMID). Their website provides a wealth of employment, labor force, unemployment and occupational information.

Where to Find Information

Roundtable Discussion

1. What relationships/partnerships/programs have been developed at the local/regional level which have proven to be most effective in the addressing your local/regional business demands for workforce?

2. How did these relationships/partnerships/programs develop? 3. Where do you see a need for policy development or revision to enable the system to work more effectively and flexibly to meet workforce demand? 4. What existing practices or systemic trends can be identified from these examples? 5. What measures would you use to test and prove the effectiveness of this system? 6. How, as local and regional leaders (e.g., Local Workforce Investment Boards), are you establishing demand-driven initiatives, and what are the tangible ways that you are able to move those initiatives to your One-Stop Delivery System? 7. How do the existing workforce system and the local K-12 system work together to address preparing today’s students to be competitive in the workplace of the future?

STIMULUS QUESTIONS

8. What other information do you have to share that would be critical in developing a comprehensive workforce development strategy for California? 9. Last year, the Fresno County Workforce Investment Board polled 700 employers in Fresno County and found that efforts to fill up to 27,000 job openings in the next three years could be imperiled by a lack of skilled applicants. The survey examined six industry sectors; all demonstrated an unprecedented demand for employees. From your regionally unique perspective, have you experience similar findings or suspect your region can anticipate similar findings? If so, what is needed in your regional/local area to address these demands for a skilled workforce in your region? What is needed from the State to meet such a daunting task?

STIMULUS QUESTIONS

Regional Roundtables Final Aq

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