Deck Generation overview deck May 27 2016 pdf

MCKINSEY SOCIAL INITIATIVE
Generation Overview

MCKINSEY SOCIAL INITIATIVE 2
Contents
What is Generation?
How will we achieve our goals?
What is our current status in the US
and future plans?
Will you be a part of the
change?
MCKINSEY SOCIALINITIATIVE 2

What is Generation?

Generation seeks to close the
skills gap for young people.
WHATIS GENERATION?
We are implementing a program to place disconnected young adults in jobs,
giving them the skills and support they need to achieve lifelong personal and
professional success—and fundamentally change their life trajectories.

WHATIS GENERATION?
Generation is built upon deep research into the
best ways to address youth unemployment
• McKinsey & Company study of
150 employment programs in
25 countries, and surveys of
over 15,000 employers,
educators, and young people
• Education to Employment:
Designing a System that
Works report summarizes
findings
• Independent nonprofit
McKinsey Social Initiative
(MSI) founded by McKinsey
& Company
• Youth unemployment chosen
as first issue for MSI:
Generation is born.
• Generation is live in
eight cities across five
countries (India, Kenya,
Mexico, Spain, and US),
with plans to rapidly
expand
2013 TODAY2014

WHATIS GENERATION?
Generation’s goals are ambitious
young people trained and
placed into promising careers
countries
years
methodology to enable others
to expand the impact to millions
more youth around the world

How will we achieve our goals?

8
HOW WILLWEACHIEVEOURGOALS?
Generation addresses two areas of need for
the youth employment field
MCKINSEY SOCIALINITIATIVE

9MCKINSEY SOCIALINITIATIVE
The Generation approach has seven components
A community that
follows graduates into
the workplace
5-12 weeks of technical,
behavioral, mindset &
professional presence
skill training
Social support
services & mentorship
along the way
1
3
4
5
Jobs & direct
employer engagement
from the start
2
Recruit students
based on intrinsics,
effort, and employment
standards for the
profession
Return on
investment
for employers,
students, and
society
6
GENERATION PROGRAM OVERVIEW
9
7
Data at
the center

10
1010
10
Generation is assessing three types of ROI, working with
Gallup to plan and execute a long-term research agenda
▪ Cost effectiveness of different
interventions
▪ Immediate job success
▪ Financial impact
▪ Physical & mental well being
▪ Long term career path
▪ Lower training and recruiting
costs
▪ Higher productivity and quality
▪ Lower turnover, abseentism, and
tardiness
Program
impact on
participants
Impact of
Generation
program
variations
Return on
investment
for employers
We are committed to
tracking ROI of our
participants for 15
years. Once we’ve
created the highest
impact program, we
want Generation to be
“open-source” so that
anyone who wants to
adopt the approach
anywhere in the world is
able to do so
10

Cumulative number of students enrolled by month
479
822
220 319
964
308
291
430
0
500
1,000
1,500
2,000
2,500
3,000
125
102
148
329
Dec-
15
174
1,114
94
466
284
May-
16
2,628
595
Mar-
16
1,880
220
106
82
Jun
-15
313
30490
Sep-
15
746
0001283 0
36
0
95
256
Dec-
14
220
44
Mar-
15
00
ES MXKEUS IN
# cohorts
(launched
to date)
Total students enrolled
by May 2016:
We supported 1200 youth in our first year of
operation, and have doubled to reach over 2600 in
the last five months
5 10 14 32 44 81 100
Wehave 90 percent job
placement for our graduates
by graduation day, with 90
percent who continue to be
employed nine months out

Examples of our impact to date (1/3)
Spain
Role: Digital marketers and web designers (9 week program)
• 90 percent of first cohort of graduates continue to be employed nine
months out (and counting) – this is 3X the employment rate of local youth
employment programs for the same professions
• More than 75 percent of Generation’s employed graduates are working in
over 50 small and medium-sized businesses (70 percent of Spain’s
private sector jobs are in small and medium enterprises)
12
Kenya
Role: Sales for financial and insurance products (6 week program)
• 100 percent of first nine cohorts (800 youth) received job offers by
graduation day, with two-thirds receiving multiple offers
• Our bank employers typically only extend offers to 10 percent of
university interviewees; however, these same employers made job
offers to 60 percent of the Generation graduates whom they
interviewed, the majority of whom have only a secondary school or pre-
university certificate and had a C or below grade at school
• Less than 10 percent voluntary attrition of graduates by the end of
month three on the job, in contrast to 35-50 percent attrition for peers
at same employers
• Employers have begun paying 25 percent of the operating cost as of
2016 Q1

13
Role: Nurse assistants (8 week program)
• Nurse supervisors report that Generation graduates:
– Save 30-60 minutes of their time per shift
– Perform 3X better than their peers on patient care and patient
safety, and 7-10X better than their peers on courtesy and
professionalism
• Over 80 percent of nurse supervisors state they want to hire more
Generation graduates
• Employers have begun paying up to 30 percent of the operating
cost as of 2016 Q1
USA
Role: Certified nurse assistants (8 week program)
• 90 percent passed the state certification exam vs. national
average of 50 percent
• 85 percent employed by graduation day and 80 percent of
graduates continue to be employed six months out
• 80 percent of supervisors rate Generation graduates as above
average employees compared to other staff members with
similar experience
• Cost of recruiting and training a Generation graduate is 2-3X
cheaper than the equivalent at our employer partners
India

14
Role: Retail cashiers (3 week program)
• 250 graduates with an 80 percent placement rate as cashiers
• Generation cashiers outperform their control group on all
dimensions:
– Generation graduates score 40 percent higher than the control
group on customer orientation
– Generation graduates close the day with an average deviation
(money in the till) that is 50 percent lower than the control group
– Generation graduates have zero attrition and zero abseentism
at the two month mark
• 94 percent of supervisors state they would hire a Generation
graduate again
Mexico

Generation is designed for self-sustainability
Catalytic
philanthropy
Phase 1
Phase 2
Shared Cost
Self-sustainability
Phase 3
Financial and in-kind
support to prove the
Generation model and
ROI
Transition to innovative cost
sharing with employers and
students
100% self-financing by end of
Year 2, with employers,
students, and government
sharing full cost
15

What is our current status in the US
and future plans?
A MCKINSEY SOCIALINITIATIVE 16

The Generation US goal is to support 200K
US youth by 2020
Context
• Today, more than 6.7 million
young adults (ages 18-29) in the US
are out of work, and three times as
many are underemployed.
• At the same time, 40% of employers
say a skills shortage is leaving
them with entry-level vacancies.
The Generation US goal
Young adults trained and placed into meaningful
career pathways
75,000
60,000
40,000
25,000
20192017 201820162015
Number
Cumulative lives
changed by 2020
200K
500
WHATIS OURCURRENTSTATUS INTHE US ANDFUTURE PLANS?
17

18
Our initial focus is on four sectors
Generation’s approach works in any middle-skill
profession in any city in any part of the world.
Healthcare
Customer
service
Technology
Advanced
manufacturing
▪ Machinist1
▪ Industrial
machinery
mechanics1
1 Preliminary MCKINSEY SOCIALINITIATIVE
▪ Computer support
specialist (help desk)
▪ Computer network
support specialist
▪ Digital marketer
▪ Web
designer/programming
▪ Certified nursing
assistant
▪ Customer service
retail associate
▪ Front desk
associate
▪ Pharmacy
technician

19
Examples of the broad coalition of
employers with whom we work
Current & target employer partners
San Jose, CA Wilmington, DE
Skills mappings:
San Jose, CASan Francisco, CAMiami, FLPittsburgh, PA
National
Our target professions
assistant
▪ Computer user
support specialist
▪ Computer network
support specialist
▪ Web designer
associate
▪ Front desk clerk
Healthcare
Technology
Customer
service
Active discussions

Active and target cities
Target cities
Confirmed cities
New Orleans,
LA
Wilmington, DE
Atlanta, GA
Houston, TX
Jacksonville, FL
San Francisco, CA
Miami, FL
Pittsburgh, PA
San Jose, CA
Chicago, IL New York, NY
Washington
D.C.
Las Vegas, NV
Generation USA scaled across the
United States
GENERATION IMPACTTODATE

170
Current
students
80%Graduation
rate
342
Graduates
7Cities
30
Cohorts
78%Employed 30
daysafter
graduation
40+Employer
partners
Generation US has graduated 342 students in
just over 15 months
3
Professional
programs
GENERATIONIMPACTTODATE

22
Early returns from Gallup supervisor surveys indicate
Generation graduates are overall performing above
average relative to peers
Initial findings
93 percentof supervisors would recommendtheir employerhire Generation
graduates again
80 percentof Generation graduates were ranked above average relative
to non-Generation employeeswith similarlevelsof experience
100 percentof graduates were recognizedfor complying with safety/
regulatorypractices
67 percentof customerservicegraduates were significantlybetterat
establishinga warm and welcomingenvironmentaccordingto supervisors
67 percentof healthcaregraduates werebetter or significantlybetterat having
a positive attitudewhen attending to patients

23
Likewise, employers have provided enthusiastic
feedback about the quality of Generation graduates
Shyla's got a good attitude, a great smile, and is always looking after customers. She sought out Home
Depot because of their benefits and practice of promoting internally. She plans to apply to their
management training program and eventually get a bachelor’s degree in business. I would love to have
more employees just like her
As an example of an exceptional Generation graduate, our recent hire (Kacedrine) is avid to learn
and grow; and pushes herself to make the best out of the opportunity she’s earned. We can easily
appreciate this by the way she presents herself every day, her big smile and engagement with
our team and the job at hand. She has very impressive results from her guest interaction as well
Leona consistently hustles while at work, and creates a warm, encouraging environment forher
coworkers. On top of that, Leona’s got a smile and a laugh that’s infectious, and our guests love being
able to spend a few moments chatting with her. Typically, we review our new-hires 90 days into their
career with the hotel and then we decide whether we will keep, or let that employee go. Leona has
not yet made it to her 90 day mark with the Hyatt, but she’s already been promoted to help open
a brand new Outlet in the hotel. Long story short, we’re lucky to have Ms. Leona and love having
her energy and spirit as part of our team!
Juan has been doing exceptionally well since joining the Inktel team. He has a lot of desirable
characteristics that I would like our other employees to demonstrate. We look forwardto future
partnerships that help produce effective/productive employees that we can add to the team, and we
also look forwardto watching these candidates grow and mature as they take on new challenges.”

24
Student input indicates Generation is also improving
young people’s career prospects and well being
Hector Flores, 1st Retail cohort
San Jose
I knew for a long time that I wanted a job
in retail or hospitalitybut wasn’t getting
anywhere so took anyjob I could get. I used
the persistence and future orientationskillsI
learned as a Generation studentto follow up
with employers, and I got a job offer with
the Fairmont, my top choice.”
Yannick Janal, 1st Retail cohort
Miami
“Before Generation, I saw my job ( at the
store) as simply bagginggroceries. Now I see
my job as putting smileson faces.
My manager noticed this change and
has asked me to join the manager training
program.”
Sheila Diaz, 2nd Healthcare cohort
Wilmington
“I took this opportunityto make a betterlife
for me and my daughter. It is helping me
support my family. If it wasn’t for this
program, I don’t know how I would do it. I
was working a dead end job. Generation
opened the door for me to move forward in
life.”
Jessica Dubois Miller, 1st Healthcare cohort
Pittsburgh
“I learned aboutmyself andmy strengths,
and gained the skills do great things. Due to
my growth mindset and abilityto apply his
new skills like being proactive and persistent,
I am being considered for promotion
to Assistant Manager
On a ten rung ladder from worst to best possible life, participants evaluated their life almost a rung and a half higher on the
ladder between beginning and graduatingfrom theprogram
Gallup well-being evaluation

CNA students outperform their non-
generation peers
Healthcare
90% Generation
pass rate for
state certification
exam vs. 50%
national average
80% Generation
graduates
employed or still
in school
Generation
graduates
demonstrate
above average
professional
skills (e.g.
professionalism,
empathy)
Our latest
Wilmington cohort
had a 100%
retention rate vs.
73% retention
rate for cohort 1,
evidence of our
continuous
improvement
efforts

Customer service has already impacted
more than 225 students
Customer
service
147 students
have enrolled in
2016, a figure
which will
continue to grow
quickly
Graduated 73
young people in
2015, of which 56
are currently
employed
95% retention
rate in 2016 vs.
78% last year, a
reflection of
effective
continuous
improvement
efforts
Improved
problem solving
confidence: 81%
of students said
they could “find
lots of ways
around any prob-
lem” at gradua-
tion vs. 62% at
program start

Building
coalitions in
cities across the
US to build
Generation into
TechHire
applications
Received grants
to launch in 3
cities (Miami,
Jacksonville, San
Jose) in March
2016
8+ employers
have played an
active role in
skills mappings
Program will
certify
graduates with
nationally
recognized
certifications
(Comp TIA A+
and/or Comp TIA
Network+)
Technology recently launched on
both coasts
Technology
27

GENERATION US PROGRAM OVERVIEW
We continue to secure funding to deliver
new programs and scale existing ones
Current funding partners
assistant
▪ Delaware WIB
▪ Entry-level helpdesk
▪ Computer support
specialist
▪ Web designer
▪ Sobrato Foundation
▪ Miami Dade Idea Center
▪ CareerSource NorthEast Florida
(Jacksonville WIB)
associate
▪ Pharmacy technician
▪ Walmart Foundation
▪ N/A
▪ Delaware Department of Health
and Social Services
▪ Longwood Foundation
▪ McKinsey & Co.
Technology
Healthcare
Customer
service
Profession-
agnostic
Our target
professions

We have created unique data tools and student tracking
processes to bring analytical rigor to our work
Track critical KPIs across the
student/graduate journey
Analyze leading indicators of
success to predict performance
Validate elements of the
Generation model
▪ Student recruitment
▪ Attendance and in-class
performance
▪ Placement in jobs
▪ Graduate performance on the
job vs control (e.g. retention,
productivity/quality outcomes)
▪ Counter-intuitive success
factors
▪ Link between in-class and on-
the-job success
▪ Effectiveness of recruiting
channels and assessments
▪ Reach into youth most in need
and likely to benefit

Will you be a part of the change?
A MCKINSEY SOCIALINITIATIVE 30

WILLYOUBE PARTOFTHE CHANGE?
Change lives.
Transform business.
Make Generation a movement.
Help us change a million lives,
and bring vibrant new talent into
our workforce for the long term.
31

Generation is the first program of the McKinsey Social Initiative, a non-profit that focuses
McKinsey’s problem-solving expertise on the world’s most complex social challenges.
32

33
APPENDIX

* representative sample
WHERE AREWE TODAY?
Funders Employers*
Implementers
Fixing youth
unemployment
takes all of us, so
we work with
a growing, global
partner coalition
JDG
34

Individual performance
increases
Reduction in
absenteeism and
disciplinary actions
Internal promotion of
candidates to higher level
jobs rather than costlier
external new hires
fees
Reduction in required
interview hours, ads, use of
recruiting agencies, etc.
Better trained
professionals who are
productive from day one
Fewer hires who leave
in a short amount of
time (<1 year)
By proving the ROI case to employers, we can make
Generation self-financing by introducing commensurate
Return on
Investment
Recruiting
Professionalism Turnover
Access to
High Level
Human Capital
Quality of Work
Training
35

WHATIS GENERATION?
What kind of jobs do we target for our
students?
• High growth industries and/or high
employer demand
• Medium skill level required, possible to
fully train in an 8-12 week program
• Provides a livable wage (i.e., above local
minimum wage) and viable career
• Interesting and attractive to young
people in our target population
• Marked by high scarcity or high churn,
so that employers are committed to
closing the existing skills gap

Who are the young adults we recruit?
• Aged 18-29, both men and women
• Unemployed or underemployed
• Disconnected and discouraged
• Dealing with life circumstances that are
barriers to education
• Has not found success in the education
to employment track
• At risk of falling off of the path towards a
fulfilling and sustaining career
Contact: Ronald M. Allen, 609-247-2799 Ronald@McKinseySocialInitiative.org

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