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  • Long before I came into this position, a dialogue was started about the critical relationship that education, workforce preparedness, economic development had to one another. There has long been an intuitive notion that the three legs on this “quality of life stool” needed to be better positioned… better aligned, for California’s economy to thrive, and for it’s residents to be able to take full advantage of the California Dream. I would like to take a few minutes of your day today to talk about a practical method for creating that alignment and see if it makes as much sense to you as it does to me. Specifically, I want to introduce you to the Industry Clusters of Opportunity. Before I do that, I want to explain a bit about how this framework…this methodology… evolved from work that has been percolating over the past 10 years or so.

Regional Roundtables   Final Aq Regional Roundtables Final Aq Presentation Transcript

  • Framing the Future Together Shared Vision – Shared Goals Transformation Roundtables Presented by Barbara Halsey, Executive Director California Workforce Investment Board
  • Premise
    • Attracting, developing, and retaining a competitive workforce demands systemic change based on strategic, collaborative partnerships
    The pace of change, driven by globalization, is unprecedented It 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 competitiveness 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 Source: Transformational Forums; Seattle, Washington, November 27-29, 2007
    • “ 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
    Transformation is Not a Choice, it’s a Must Source: Transformational Forums; Seattle, Washington, November 27-29, 2007
  • Impacts of Globalization
    • 1 billion people live on less than $1/day
    Source: Transformational Forums; Seattle, Washington, November 27-29, 2007 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
  • Defining the Challenge : The U.S. is 4% of the World’s Population There are 3 billion people in China , India , and Russia if 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 Source: Transformational Forums; Seattle, Washington, November 27-29, 2007 if 10% are highly educated that’s only 30 million China India Russia United States U.S.
  •  
  • Source: Transformational Forums; Seattle, Washington, November 27-29, 2007
  •  
  • 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, 2007
  • Defining the Challenge: Educational Attainment Levels
    • 93% 87% Black
    • 53% Hispanic
    • Drop outs: 1 every 29 seconds, 6000 each school day
    California High school drop out rates Anglos 23% African Americans 43% Hispanics 40% 1 student drops out of school every 29 seconds 6,000 each school day.
  • Defining the Challenge: Tech Training Isn’t Cool Manufacturing was 49% of U.S. GDP after WWII WWII % of Total GDP Present Day Today it is only about 6% - 8% The Lack of qualified workers is driving jobs offshore Scientists are critical But 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 Partnerships Engagement – 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
  • Talent Development Higher Education Industry Workforce System Other Adult Education 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 Development
    • Job 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
  • Talent Development System Collaborate Coordinate Innovate Business Demand Workforce Development Economic Development Education
  • 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 Example
    • The following slides capture the experiences of the North Coast in putting the methodology to work.
    CA Workforce Investment Board Targets 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…?
    Source: Humboldt WIB Slide Show for State Board Meeting 7/26/07
  • 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.
    Source: Humboldt WIB Slide Show for State Board Meeting 7/26/07
  • 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.
    Source: Humboldt WIB Slide Show for State Board Meeting 7/26/07
  • Redwood Coast Region: People and commerce moves from the mountains west Source: Humboldt WIB Slide Show for State Board Meeting 7/26/07
  • What are Targets of Opportunity? Source: Humboldt WIB Slide Show for State Board Meeting 7/26/07
  • 5 Bells To Ring: How Targets of Opportunity Were Identified Source: Humboldt WIB Slide Show for State Board Meeting 7/26/07 IMPORTANT RELATIONSHIPS AND COMMON NEEDS Related to other sectors in important buyer-supplier or complementary partnering relationships. Share a common workforce, markets, or others. Key Linkages OCCUPATIONAL DISTRIBUTION AND DYNAMICS Occupational 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. Career Potential STRONG AND/OR GROWING REGIONAL SPECIALIZATION A 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. Improving Competitiveness JOB QUALITY High 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 Growing Quality JOB GROWTH Shows how various industries have weathered market forces and their subsequent employment generation FIRM GROWTH Growth in firms can indicate a change in organization of an industry, a surge in local entrepreneurship, or attraction of outside investment to the region Expanding Opportunity INTERPRETATION CRITERIA
  • 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
    Source: Humboldt WIB Slide Show for State Board Meeting 7/26/07
  • 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
    Source: Humboldt WIB Slide Show for State Board Meeting 7/26/07
  • 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
    Source: Humboldt WIB Slide Show for State Board Meeting 7/26/07
  • Humboldt Export Industry Clusters: 9 of 7 Growing Source: Humboldt WIB Slide Show for State Board Meeting 7/26/07
  • Targets of Opportunity are 51%+ of Private Sector Wages in All Counties Source: Humboldt WIB Slide Show for State Board Meeting 7/26/07
  • 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 infrastructure Source: Labor Market Information Division, EDD
  • Health Science and Services Example from Bay Area Region Source: Humboldt WIB Slide Show for State Board Meeting 7/26/07
  • Diversified Health Care 33% 28% 39% Source: Humboldt WIB Slide Show for State Board Meeting 7/26/07
  • 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 forward
    Source: 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.
    Source: Humboldt WIB Slide Show for State Board Meeting 7/26/07
  • 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
    Source: Humboldt WIB Slide Show for State Board Meeting 7/26/07
    • 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