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Transformation: The Case for Building a Competitive Workforce Through Strategic Partnerships


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Title: Transformation: The Case for Building a Competitive Workforce Through Strategic Partnerships

Transformation The Case for Building a
Competitive Workforce Through Strategic
  • 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

  • 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
  • Pace of change, driven by globalization, is
  • It has created an intense, globally competitive
    environment driven by innovation
  • This has resulted in significant economic change,
    which demands both strategic and organizational
  • 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

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

Cluster Theory(Understanding Economic
  • 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

Four Forces Driving Change
  1. Globalization
  2. Technology and Telecommunications
  3. Regionalism
  4. Sustainable Development

The Impact of Globalization
  • We won the cold war capitalism prevailed and
    in the process we created 3 billion new
    competitors for the worlds markets and
  • The U.S. is 4 of the worlds market, consuming
    26 of the worlds resources.
  • Most of the worlds natural resources, people and
    capital are somewhere else.
  • Half the worlds population lives on lt 2/day
  • 1 billion people live on lt 1/day

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

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.

Disruptive Technology What it is, why do I care?
Advanced Oil Gas Exploration Hydraulic fracking, creates 4 trillion in new oil gas
Renewable Energy Wind solar, new energy sources declining prices
Advanced Materials Nano Particles
3-D Printing Make plastic products with ink-jet printing techniques
Energy Storage Batteries Capacitors
Next Generation Genomics DNA sequencing, gene mapping
Autonomous Cars Robot cars, sensors in roads
Cloud Technology Server farms serving 2.7 billion internet users
Internet of Things Weblinking devices, HIT
Automoation of Knowledge Work Work activity displacement, all occupations
Mobile Internet Smart phone Interconnections, 24/7 workers
  • The urban landscape has spawned economic regions,
    irrespective of political or geographic
  • Globally competitive regional economies demand
    intergovernmental collaboration, and effective
    public/private sector partnerships
  • Effective regional collaboration requires neutral
    conveners and nontraditional approaches

The Changing Face of the Labor Market Structural
New Business Supply Chain Practices
Labor Market
Tradable Skills Occupational Blending
U.S. Economy Credit Capital
Innovation Technology
Telecommunications Internet/Social Media
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

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.

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
  • ATT Technologies
  • Sunoco
  • Occidental Petroleum
  • ConocoPhillips
  • Procter Gamble
  • Dow Chemical
  • Union Carbide

2013 Fortune 500 Top 25
  • Wal-Mart Stores
  • Exxon Mobil
  • Chevron
  • Phillips
  • Berkshire Hathaway
  • Apple
  • General Motors
  • General Electric
  • Valero Energy
  • Ford Motor
  • ATT
  • 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
Maintaining Our Competitive Workforce
  • Unemployment rate has fallen to 7.3 from 10 in
  • Business has added 7.6 million jobs over the same
  • However, Long term unemployment is up 213 over
    the same time!

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
  • 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
    working-age adults are not participating in the
  • 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

How Has Global Competition Reshaped the
  • 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

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

Defining the Challenge Were 4 of the worlds
  • 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 doesnt count the rest of the world

Defining the Challenge Were projected to lose
population to 2050
  • 12 million undocumented workers
  • 20 million projected shortages from
  • 32 million shortfall to fill current jobs!
  • (Is it time to resolve immigration?)

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

Defining the Challenge Tech training isnt 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

Defining the Challenge Early childhood needs
  • The high school graduating class of 2026 entered
    the public education system this fall
  • Its a 13 year production cycle
  • Kids are born prepared to learn
  • 3rd graders who cant read seldom catch up (and
    generally drop out)

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
  • Nodes support development with complementary
  • Moving from taking the order to anticipating the

Developing our Commercialization Infrastructure
  • Fostering applied research commercializable
  • Establishing industry/academic partnerships
  • Venture capital formation
  • Business technical assistance
  • Entrepreneurial development

Its How Northern California Became Silicon
  • The successful organizations of the next decade
    will be those who learn to collaborate and build

Tom Peters Author
Developing Strategic Partnerships
  • Relationship Building must take place at all
  • Engagement integration of employers (and the
    organizations that represent them) with public,
    higher education, adult education, publicly
    funded workforce investment, voc-tech, post
  • Importance of Systemic Change (not MOUs)
  • Incentivize
  • Open discussion of the M word
  • Foundation for partnership based on Trust

Lessons Learned from National Workforce
  • 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
  • Focus should be to develop replicable,
    sustainable, scalable models
  • Successful models based on collaborative,
    cooperative partnerships
  • Importance of organizational capacity in support
    of business leadership and engagement

Why is Employer Engagementa Challenge?
  • Employers dont use or understand the workforce
    investment system arent engaged with education
  • Employers dont care about the public policies
    that define systems they dont 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

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

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)

When To Engage
  • At the beginning
  • In the planning stage
  • In the selling stage
  • In the implementation stage
  • In the evaluation stage
  • (This isnt your fathers MOU)

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

What You Do When You Engage
  • Plan
  • Organize
  • Staff
  • Direct
  • Evaluate

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

Ten Commandments
  • Simplicity
  • Brevity
  • Credibility
  • Consistency
  • Novelty
  • Sound Texture Matter
  • Speak Aspirationally
  • Visualize
  • Ask a Question
  • Provide Context/Explain Relevance

Positive Messages
  • A childs education everywhere should prepare
    them for life anywhere
  • We need better pay for better teachers
  • We need parental involvement in our schools
  • Its what students learn not what you teach
    results matter
  • We need to go back to basics

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
  • Identify and define the primary stakeholdersyour
    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.

  • There is nothing stronger than the heart of a
  • Colonel Jimmy Doolittle, WWII
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