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The World is Flat--GSETA 2006 Conference
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The World is Flat--GSETA 2006 Conference

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Impact of Flat World principles on workforce development system

Impact of Flat World principles on workforce development system

Published in Economy & Finance , Career
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  • Could I please have a copy of this slide - The World is Flat
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  • To usadcomputerclass--This is from a live presentation where we more than gave Tom Friedman his due, including showing his book and encouraging participants to buy it.
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  • You should give Thomas Friedman his credit immediately in the presentation.
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  • I agree. Nice stuff!
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  • Excellent presentation, thank you! Summarizes extremely well Thomas Friedman's research for his book The World is Flat.
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  • 1. “ The World is Flat”: How Globalization is Changing Our Workforce System Presented by: The Widing Group Robin Widing Michele Roy Martin
  • 2. Headlines
    • For the month of July 2003, India announced the creation of 30,000 new outsourced jobs.
    • In that same month, US firms carried out 2,087 mass layoff actions resulting in the loss of 226,435 American jobs.
  • 3. SOME STATS
    • Since 2000, 150 million educated workers have entered the global workforce.
    • In India, it costs $700/month to provide wages, medical benefits for an entire family, transportation, lunch and dinner to a worker in a call center.
    • A Chinese production worker brings home $265/month or $3195/year
  • 4. Defining Globalization in 2006
    • Globalization has evolved
    • Market competition is global
    • Turbo-charged environment
    • Business goes where the “talent is”
    • Life-time employment replaced by life-time employability.
  • 5. The Flatteners: Phase 1
    • Created a collaborative platform for information and relationships that were global:
      • Berlin Wall, MS Windows
      • Netscape
      • Software that can “talk” across disciplines
  • 6. The Flatteners: Phase 2
    • Businesses are now building upon a common technological interface and infrastructure to create processes that are more efficient and fuel innovation:
      • Open-sourcing
      • In-sourcing
      • Outsourcing
      • Supply-chaining
      • Off-shoring
      • Information Diving
      • “ Technology on Steroids”
  • 7. How Has Business Changed?
    • Decentralized Organizational Structures
    • Collaborative Partnerships
    • Leverages technology
    • Common data and process standards
    • Functional view of work processes
    • Open communication
    • Emphasis on knowledge & innovation
  • 8. A Globally Competitive Workforce
    • Individuals competing against other individuals.
    • Previously “specialized” skills becoming commodities, performed by the lowest bidder.
    • Workers must possess the knowledge, skills, attitudes and behaviors to continually adapt to ever-changing and escalating labor market requirements.
    • Workers must have the ability to integrate and apply their academic, technical and practical knowledge and skills to solve real-world problems
    • Workers must take charge of their own learning.
    • Ability to work in a team environment and work effectively with customers, coworkers and supervisors.
  • 9. How does this change jobs?
    • OUT
    • Generalists
    • Basic Literacy
    • Occupations & Career Ladders
    • Employee
    • Life-time employment
    • IN
    • “ Versatilists”
    • Workplace Literacy
    • Skill Clusters & Skill Ladders
    • Entrepreneur
    • Life-time employability
  • 10. Value-Add Services for Job Seekers
    • OUT
    • Barrier assessment
    • Basic Literacy development
    • Service plans
    • Geographic job matching— “what local jobs will match our job seeker’s skills?”
    • IN
    • Comprehensive assessment
    • Workplace Literacy development
    • Career Plans
    • Skill matching– “what global jobs might match our job seeker’s skills?”
    • Skill development for a global market— “What skills could our job seekers develop that would make them competitive in a global market?”
  • 11. Value-Add Services for Business
    • OUT
    • Taking job orders
    • Job Matching
    • Job Fairs
    • Job development– “hire our local workers”
    • IN
    • High-level skill analysis
    • Trend and data analysis to stay ahead of workforce trends
    • Job development— “how can we help you find the best workers?”
    • Innovative use of technology
    • Focus on building skills that “fill the pipeline”
  • 12. Implications for LMI Analysis
    • Look at business and industry differently.
    • Look at jobs/occupations differently.
    • Change our definition of “demand-driven.”
  • 13. We Need To . . .
    • Analyze industries and jobs in terms of their “ fungibility ”—what is the likelihood that jobs can be outsourced?
    • Become more knowledgeable about impact of technology and global markets in key industries and occupations
    • Become pro-active and focus on developing “anchored” and “value-add” jobs.
  • 14. Work in the Global Economy
    • “Fungible” Jobs
    • “Anchored” Jobs
    • Value-add Jobs— “To be competitive you have to be more than plain vanilla.”
  • 15. Fungible Jobs (1)
    • Repetitive, skill-based work requiring a minimum of interpretation or decision-making
    • “ As a general rule, the less a job requires independent thought or advanced training , and the more transitory or seasonal its nature , the greater the odds are that job candidates are fungible.”
  • 16. Fungible Jobs (2)
    • Easily digitized (can be done on computer, over phone)
    • Not tied to a particular geographic location ( this is more flexible than you think )
    • Processes can be more “automated”
    • Will tend to go to where labor costs are the cheapest
  • 17. Examples of Fungible Jobs
    • Bill payment/processing
    • Medical transcription
    • Insurance claim processing
    • Hotel/Airline reservations
    • Mortgage loan servicing
    • Computer programming & software design
    • Tax return preparation
    • “ Junior” accounting, legal and architectural activities
  • 18. Sectors Most At Risk
    • Office Support
      • Computer Operators
      • Data Entry
    • Business and Financial Support
    • Computer and Math Professionals
    • Paralegals and Legal Assistants
    • Diagnostic Support Services
    • Medical Transcriptionists
    SOURCE: “The New Wave of Outsourcing”--Fisher Center for Real Estate and Urban Economics (UC-Berkeley)
  • 19. Attributes of Outsourced Jobs
    • No Face-to-Face Customer Servicing Requirement
    • High Information Content
    • Work Process is Telecommutable and Internet Enabled
    • High Wage Differential with Similar Occupation in Destination Country
    • Low Setup Barriers
    • Low Social Networking Requirement
    SOURCE: “The New Wave of Outsourcing”--Fisher Center for Real Estate and Urban Economics (UC-Berkeley)
  • 20. Anchored Jobs
    • Must be performed in a particular geographic location
    • Wages set by local conditions (demand & supply).
    • BUT . . . There are “fungible” parts of anchored jobs that can and will be outsourced.
  • 21. Anchored Jobs—Two Tiers
    • Retail sales clerk
    • Waiter/Waitress
    • Cleaning
    • Landscaping/ Lawncare
    • Hair stylist
    • School bus driver
    • Healthcare--Nurse, PT, OT
    • Automotive Tech
    • Over-the-road Truck Driver
    • Chef
  • 22. Anchored Jobs with Fungible Parts
    • Radiologists in India are reading X-rays for American patients.
    • McDonald’s is outsourcing drive-thru ordering.
    • Hospitals in India now offer reasonably-priced post-surgical sight-seeing trips.
      • They serve 55,000 foreign patients/year
      • 75% are uninsured and underinsured Americans
  • 23. “Value-Add” Jobs
    • Requires:
      • Specialized knowledge and/or skills to perform
      • Adaptability
      • Depth/breadth of skill
      • Life-long learning
      • Development of “Whole New Mind”
    • Definition of “value add” changes as technology and work processes are changing.
    • Economic growth directly tied to region’s ability to attract and retain “value-add” work & workers.
  • 24. LMI in a Round World
    • What are the major industries in our area?
    • What jobs do they say they want to fill?
    • What is the capacity of our area to fill those jobs (demographics, education, etc.)?
    • What do we need to do to fill the pipeline?
  • 25. LMI in a Flat World
    • Which of our local jobs could be done overseas for less money?
    • Which of our local jobs could be done faster or better by a computer?
    • How will technology change the skill and knowledge requirements of our local jobs?
    • Which jobs offer the greatest stability (self-sufficiency wages and “untouchable” status)?
      • Which do we have?
      • Which do we want to attract?
  • 26. Could It Be Done Overseas for Less?
    • Average Salaries of Programmers
    • Country Salary Range
    • Poland and Hungary $4,800 to $8,000
    • India $5,880 to $11,000
    • Philippines $6,564
    • Malaysia $7,200
    • Russian Federation $5,000 to $7,500
    • China $8,952
    • Canada $28,174
    • Ireland $23,000 to $34,000
    • Israel $15,000 to $38,000
    • USA $60,000 to $80,000
    • Source: CIO magazine, November 2002, Smart
    • Access Survey, Merrill Lynch.
  • 27. Could a Computer Do it Faster or Better?
    • Turbo Tax has replaced your accountant.
    • ATMs and on-line banking have replaced your bank teller.
    • E-ticket check-in has replaced your ticket agent.
    • Automation and “do-it-yourself” tests may make Med Techs obsolete.
  • 28. How Does Tech Change the Job?
    • With the Internet you can be your own lawyer.
    • “ Wireless healthcare” changes how medical professionals interact with patients.
    • Automotive technology—workers must be able to work with computerized shop equipment, electronic components and traditional hand tools.
    • Financial Planners—more focus on empathy, ability to work with people.
  • 29. Demand is a Two-Way Street
    • What jobs do we want to keep?
    • What jobs do we want to attract?
    • How can we prepare our workers to fill those jobs?
  • 30. Broaden/Deepen Scope of LMI
    • Global market for talent
      • Who are you really competing against?
      • What is their capacity to provide supply?
      • What jobs do you want to attract?
      • How do you make your region attractive to the kinds of people who want these jobs?
    • Global Demographics
      • Impact on industries and demand for products/services.
      • Impact on local jobs
    • Present and Future Impact of Technology Trends
  • 31. Challenges
    • Skills at a premium
      • Entrepreneurial
      • Engineering, Math & Science
      • Specialized skills
    • The Quiet Crisis
      • Numbers Gap
      • Motivation Gap
      • Education Gap
    • Job Churning
    • How NOT to leave people behind!
  • 32. The Good News!
    • Global Economy not finite
    • Universal Interdependence
    • Capitalism doing well
    • America spawns innovation
    • Change brings opportunity
    • Our workforce system has the capacity to address these changes.