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A West Michigan Workforce Innovations Lab MCAAA Conference. MCAAA Conference What is WIRED West Michigan One Example - NCRC Q&A. Today’s Presentation. Economic Challenges In West Michigan. Since March of 2001, the region has lost 27,100 jobs, a decline of 4.6%
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A West Michigan Workforce Innovations Lab MCAAA Conference
MCAAA Conference What is WIRED West Michigan One Example - NCRC Q&A Today’s Presentation
Economic Challenges In West Michigan • Since March of 2001, the region has lost 27,100 jobs, a decline of 4.6% • 90% of the region’s job losses occurred in manufacturing. • West Michigan is more than twice as dependent on manufacturing compared to the nation as a whole. 22% of the workforce is in manufacturing. • Between 2000 and 2004, real median income decreased in the region, and the poverty rate rose from 8.4% to 10.1%. • The wages in growing industries are only 50% of the wage levels in declining industries.
Impact on Human Capital Needs • Fewer jobs • Higher skill requirements • More rapid changes in skill requirements • Blurring of traditional discipline boundaries • More collaboration • More frequent career changes
Key Messages • Our economy is in the middle of a transformation that has far-reaching implications • Innovation is at the core of this transformation • We need to redesign and realign our systems to support innovation • We are uniquely positioned to be a national model for workforce development innovation • Our regional mindset is our competitive advantage
The largest macro issue is recognition and understanding that fundamental transformation is required, not incremental tweaking. This involves changing the mindset of the region to understand that the status quo is not an option and that we must develop and implement an innovative action plan for transforming to a knowledge-based economy. Recognizing the need to change will be demonstrated by our region’s willingness to tackle difficult structural issues. WIRED proposes system changes for this reason. Challenges for the Workforce Investment System
Purpose of the WIRED Initiative • Funded by the U.S. Department of Labor, Employment and Training Administration • Transform workforce investment & education systems to support the skill requirements of the innovation economy • More strategically integrate workforce development and economic development • Focus on long-term systems change, not short term job training slots • Rating criteria: (1) Strength of partnership; (2) Statement of need; (3) Strategies for system transformation “The WIRED initiative will help participating regions move to the next level of system innovation and transformation.” (Emily DeRocco)
WIRED West Michigan: Who We Are • Grantee • West Michigan Strategic Alliance • Fiscal Agent • Grand Valley State University • Region • Allegan County • Barry County • Ionia County • Kent County • Muskegon County • Newaygo County • Ottawa County
Overall WIRED West Michigan Goal The overall goal of WIRED West Michigan is to develop and manage an “innovations lab” designed to spawn a wide range of innovations in our regional economic development, workforce development and educational systems. Result: Compete and win in the “innovation economy”
Our Definition of What Makes Something An “Innovation” Performance Improvements It achieves improvements in the performance outcomes and reductions in the cost of outcomes. Financial Sustainability It is based on an economic model that is sustainable on existing resource availability and do not require excessive subsidies over extended time frames. Scalability The innovation can be expanded using a common set of core systems; it is not context-dependent. Systems Change Substantially changes an existing system, or contributes to the creation of a new system.
The Core Innovation Processes 3. Prototype 4. Launch 1. Concept 2. Business Case
Initial portfolio = 12 innovations in four categories Each innovation is treated like a new product development process, following best practice in the private sector. Disciplined process for managing innovations – from concept to business case, prototype and launch. Grant resources = an “R&D investment fund.” Investments are linked to achievement of criteria to move from one stage to another. The design of innovations is expected to evolve, based on new information and opportunities. Not all innovations will be expected to succeed. Resources will be continuously redeployed as appropriate. Our Innovation Framework & Management System
Workforce Innovations Lab Operating Design Workforce Innovations Lab Operating Design • 2006 Innovation Portfolio • InnovationWORKS • Innovation Curriculum • Manufacturing Skills Coop • WorkKeys and Work-Based Learning • Manufacturing Skills Standards • Global School & Accelerated Engineering • Regional Tri-Sector Workforce Development (SOURCE) • Health Care RSA • Entrepreneurial League System®of West Michigan WIRED POLICY COUNCIL Oversight of the Innovation Process & Investment Decisions INNOVATION PROCESS SUSTAINABLE INNOVATIONS 1. Concept Definition 2. Business Planning 3. Testing & Prototype 4. Production & Launch Managing the Innovation Portfolio • WMSA Staffing • Procedure and policy development and management • Stage-gate process • Champion selection • GVSU Fiscal Agent • Innovation Teams • Development of the innovation through the stages • Hosting of the prototype • Regional Advisory Groups • Project Advisors • Portfolio management • Knowledge management • Learning history • IT Infrastructure • Communications • Market Intelligence • Emerging Sector Analysis • Global Supply Chain Analysis • Knowledge Workers and Economic Development
Our Four Categories of Innovations Market Intelligence Better understand the structure of regional employment clusters and the emerging skill requirements for the innovation economy. Workforce System Transformations Restructure key elements of our workforce development and education systems for emerging, existing and transitional workers Innovation Infrastructure Catalyze, support and sustain strategies to support innovation in our regional economy. Enterprise Development Stimulate entrepreneurship and new business creation in key sectors of the innovation economy.
1 -- Market Intelligence Goal: Better understand the structure of regional employment clusters and the emerging skill requirements for the innovation economy. Emerging Sector Skill Analysis Conduct a region-wide assessment of the skill requirements of our emerging economic sectors, including life sciences, alternative energy and sustainable manufacturing. Regional Supply Chain Evolution Analysis Partner with the Supply Chain Council of West Michigan to understand the likely evolution of their supply chains over the next ten years, and what the implications are for our region’s workforce skill requirements. Knowledge Workers & Economic Development Partner with the Work Design Collaborative to develop an economic development strategy to attract and retain knowledge workers through the design of work places.
2 – Innovation Infrastructure Goal: Catalyze, support and sustain strategies to support and build innovation capacity in our regional economy Innovation Curriculum Based on the Innovation Framework for Manufacturing, create a new curriculum for developing the skills needed to support innovation strategies, systems and practices in area companies. • InnovationWORKS • Intellectual Property Commercialization: Develop a community-wide initiative for organizing current and future resources to accelerate the commercialization of intellectual property in West Michigan. • Industrial Design Council: Launch a regional Industrial Design Council to increase the supply and use of industrial design skills in area companies. • Innovation Forum: Bring world-class thinkers on innovation to West Michigan as a means of raising awareness and spurring local stakeholders to action.
3 -- Workforce System Transformations -- Emerging Goal: Restructure key elements of our workforce development and education systems for emerging, existing and transitional workers. Global School Model Design, develop and implement a new “global school” model for the region, based on achieving global performance standards in math, science and technical skills; creating global experiences for all students; and utilizing global sourcing for curriculum content and learning design. Accelerated Engineering Program In partnership with GRCC and GVSU, assess the feasibility of a compressed two-year bachelors degree in engineering, based on the successful model implemented by Richland Community College in Texas (winner of this year’s Malcolm Baldrige national quality award). Performance-Based Credentialing Using WorkKeys Develop a strategy for broad-based implementation of WorkKeys in schools and regional employers, in order to create “transparency” and performance-based alignment between the classroom, the workplace, and college entrance.
3 -- Workforce System Transformations -- Existing Goal: Restructure key elements of our workforce development and education systems for emerging, existing and transitional workers. Regional Manufacturing Skills Co-op Create an employer-driven and managed skill development cooperative that will create organized skill development around “Best in Class” operational excellence practices being used by area firms. Portable Credentials Through the Manufacturing Skills Standards Create a region-wide portable credentialing system for skilled manufacturing workers through implementation of the manufacturing skills standards system recently launched by the national Manufacturing Skills Standards Council.
3 -- Workforce System Transformations -- Transitional Goal: Restructure key elements of our workforce development and education systems for emerging, existing and transitional workers. • Health Care Regional Skills Alliance • Align the region’s workforce development system around the entry-level employment requirements of the health care sector • Include analyzing the health care skill development needs of employers • Build employer partnerships • Implement training programs to meet skill demand in this sector. • Regional Tri-Sector Workforce Development (SOURCE) • Expand the SOURCE model to a collaborative employer regional model to: • Transition employees from welfare • Target populations (such as ex-offenders) • Adapt other transitional situations into entry-level employment
4 -- Enterprise Development Goal: Stimulate entrepreneurship and new business creation in key sectors of the innovation economy. • Entrepreneurial League System® of West Michigan • ELS has demonstrated the capacity to radically increase the success rate of new entrepreneurs through a disciplined skill development system for assessment, coaching and staged development. The ELS accomplishes three objectives: • It creates a pipeline of highly skilled entrepreneurs capable of building successful companies in sufficient numbers to transform a region’s economy and create individual as well as community wealth) • It organizes the private, public sector and non-profit enterprise business service providers into a coordinated and disciplined system to provide entrepreneurs with the right kind of help at the right time and the right price • It develops civic leaders, or community entrepreneurs, capable of creating and managing an entrepreneurial community.
