Building Partnerships: Workforce and Economic Development

National Association of State Workforce Board Chairs

2004 Summer Meeting

Denver, Colorado

Scott Cheney, NAWB Senior Advisor202.775.0960 x104cheneys@nawb.org

A Little Background

• Developers

• Design/Modules

• Delivery

• Expansion & Next Steps

What We’re Hearing• Issues Of:

– Awareness/Marketing• Many from ED and WFD have limited views of themselves and

the other

– Unclear Value Proposition• Goals & Metrics Differ

• What are the Interrelations between Economic / Community / Workforce Development

– Trust/Culture• “Need-to-Know”

• Driven by the elephants

• Family rivalries

What We’re Hearing• Issues of:

– Planning• Many and competing agendas

• Overlapping and/or uncoordinated R&D efforts

• Many and competing messages to the customers and stakeholders

– Capacity/Resources/On-the-Ground Service Delivery• WIBs are see as sources of money; not much else

• Both have limited staff and funding

• Truth is that each could do more through partnership

– Non-Aligned Service Areas• Downtown vs City vs Region vs Corridor vs …………

• One WIB=Many EDOs

What We’re Hearing• Issues of:

– Leadership• Many state officials don’t fully understand local issues

• Many local LEOs don’t understand ED or WFD, and don’t know how to create a whole greater than the parts

• There are both many potential leaders and few who understand that their leadership is needed

Economic Development Definitions

• WHAT: – Process over time, not an event

– Enhanced quality of life for citizens– Rising standard of living

– New community and business wealth

Economic Development Definitions

• HOW (Examples): – Help regional economies grow, diversify, remain stable– Capitalize on location– Strengthen innovation, entrepreneurship, competitiveness– Minimize poverty, maximize opportunities

– Make productive use of community or firm assets

– Enhance infrastructure to support growth

– Facilitate corporate investments

– Broaden tax base to support local government.

Who Does Local Economic Development (LED)?

• LED organizations are often “generalists” or “brokers”

• LED is result of the collective efforts of the public, private and community sectors

• Local governments (elected officials and government staff) are major players -- investors

• Models involve partnerships– Public-private nonprofits– Public-community based organizations– Intergovernmental (local/state or multi-jurisdictional)

Local Economic Development: The Basics

• No single model effort, strategy process, or set of programs for achieving local economic development

• Communities differ widely in their: – geographic attributes; social organization; economic

resources, structures and performance; and capacity of political institutions.

• Responding to unique set of challenges for economic development in each community.

Core Activities

• Three-legged stool:– Business attraction and recruitment– Business retention and expansion– Business creation and start-up

An Average Local Economic Development Agency(Economic Development Corporations, Chambers, Regional Planning Councils)

• 4.1 FTEs

• $660,851 Average Budget

• 261,000 – Mean Population of Service Area

Source: ACCRA 2004 Survey of Economic Development Organizations

Workforce Development Definitions

• Handout• What?

– Occupational preparation necessary for work– Recruiting, placing, mentoring, counseling– Education, employment, and job training efforts

• How?– Enhance technical, basic, and academic competencies– Coordinate school, company and governmental policies– Strengthen localized talent pool

Role in Economic Transitions

• Anticipate trends in regional economy, labor force• Provide layoff aversion strategies, including

access to broad range of services

• Exchange information about at-risk companies/industries, potential dislocations

• Conduct early interventions, pre-feasibility studies • Deliver rapid response when layoffs occur

• EXAMPLES

References and Cautions

• Specific Citations in the WIA Statute and Regulations – Roles of State and Local WIBs

– Relationship to Economic Development opportunities

• Prohibitions on the Use of WIA Funds– Construction

– Employment generating activities

– Business relocation

– Worker displacement

Perceptions vs. Reality

• Old brand (JTPA) vs. new brand (WIA) – Universal access– WIB private sector representation– Funding availability and use– Incumbent worker training – Target populations– Employers as customers

• Methods of engagement

Comparison: Culture/Language

Economic Developers• Company-focused (firms

and industries)

• Business background

• Tax policy, Financing, Real estate development

• “Return on investment,” “location quotients”

• Time is money, deal making

Workforce Developers• Individual-focused

(occupations and skills)• Social service background• Counseling, supportive

services• “Eligibility,” “self

sufficiency standards,” “terminations”

• Spend quality time with people

Defining Success/ Performance Metrics

• Economic Development– Jobs created and retained

– Public investments made

– Private investments leveraged

– Tax revenues

• Workforce Development– Placement

– Retention after six months

– Earnings after six months

– Skill attainment/Credentials

– Customer Satisfaction

Classic Tensions in Economic (& Workforce) Development

• Equity vs. Efficiency

• People vs. Place

• People vs. Firms

Mutually Beneficial Activities

• Collaboration on planning– WIB as convenor, catalyst

– Align planning activities and use of resources to advance common goals (“Plan in a brochure”)

– Include multiple jurisdictions, regional focus

– Rationalize use of resources, avoid duplication of services

– Create public awareness, sense of urgency

– Define measures of regional “economic health”

Aligning Workforce and Economic Development Plans

• Reconciling what’s required vs. the “big picture”• Reconciling different geography, political

jurisdictions, metrics • Reconciling short-term vs. long term perspective • Sharing data on employer needs and opportunities • Identifying common goals, activities• Using available resources efficiently

Mutually Beneficial Activities

• Collaboration regarding market segmentation– Convene key organizations to identify market targets

– Establish channels for sharing data and information among staff

– Package and distribute labor market information in manner accessible to employers and community

– Organize supply of workers so accessible to employers

Cluster and Industry Sector Strategies

• Used increasingly by WIBs and other intermediaries

• Organize by similar characteristics (geography or industry, expressed needs)

• Understand industry trends and issues

• Identify and address needs in common

• Bring workforce resources and expertise

Mutually Beneficial Activities• Collaboration on service delivery

– Develop single regional website to promote region (North Central Indiana)

– Include WIB in discussions about business attraction strategies and activities

– Host economic development board meetings at One Stop

– Cross train staff re: services, work process, etc.

– Coordinate or make joint field visits to employers– Include economic development organizations in rapid response– Make referrals of companies for services– Identify and promote jointly the top 50 critical occupations for the region

and use as vehicle to raise awareness about regional economy, links to education providers (North Central Indiana)

Business Services Strategies

• “Standard” WIA services typically include:– WIA services to individuals/employers at front end

(i.e., hiring) and back end (i.e., layoff) of employee life cycle

– Assistance with recruiting, interviewing, assessment, screening, placement

– Some additional services to enhance retention (orientation, skills upgrading)

– Transition assistance if layoff occurs

A Broader Array of Business Services

• Initiatives or activities to enhance the competitive position of the company, assist in staying healthy

• Think beyond providing job matching services or training to employers

• Can occur at different phases in the life cycle of a company--don’t have to wait for crisis

• Even when in crisis, firm may shut down or layoff for variety of reasons that don’t mean it is not economically viable still

• Process modernization, equipment upgrades• Conversion to new products/id new markets• Operations and cost reviews• Financial restructuring • Good management practices • Good labor-management relations if unionized• Work-Sharing

Other Needs of Employers

Different Verbs, Different Opportunities

• Level One: Governance:Organizational restructuring (integrate, merge)

• Level Two: Strategic:Aligning mission, functions, resources (align, coordinate)

• Level Three: Tactical: Targeted initiatives to achieve specific objectives

(collaborate, partner, link)

What We’re Hearing• Issues Of:

– Awareness/Marketing

– Unclear Value Proposition• Goals & Metrics Differ

– Trust/Culture

– Planning/R&D

– Capacity/Resources/On-the-Ground Service Delivery

– Non-Aligned Service Areas

– Leadership

State Board Roles• What a Commission can Teach Us

– Bi-partisan; High Visibility; Fact-Based

• Leadership• Facilitation / Holding the Conversation• Education• Connection• Funding

• Seven Key Questions

Final Counsel