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Foundations of State Sector Strategies Virtual Policy Academy Webinar 1 of 3 Presenters Martin Simon and Erin Andrew NGA Center for Best Practices Nancy Laprade Corporation for a Skilled Workforce Jim Torrens National Network of Sector Partners Kathy Sweeney MN Department of Employment and Economic Development Today’s Focus Why State Sector Strategies? Getting Started Engaging System and State Leadership Engaging Industry Leaders Engaging Public Partners Virtual Policy Academy States CA DE ID LA MO MT NM UT VI WY US Virgin Islands Remaining Webinars Promoting Regional Economies Thursday, August 6, 2:00 – 3:30 PM Eastern Sustainability and Impact Thursday, August 27, 2:00 – 3:30 PM Eastern Topics of Interest 6 4 2 0 Other Resources • • • • Targeted responses to surveys State Sector Strategy Toolkit Other publications Ask for what you need! www.sectorstrategies.org Focus: Why State Sector Strategies? Getting Started Engaging System and State Leadership Engaging Industry Leaders Engaging Public Partners Why State Sector Strategies? • Provide a policy framework for a statewide approach • Support and leverage regional sector initiatives – where the “rubber hits the road” • Identify and reduce/eliminate barriers that get in the way of regional initiatives being successful • Provide opportunity for statewide sector partnerships that are important to all regions of the state (i.e. health care and manufacturing) Why Regional Sector Initiatives? • Address the needs of employers -- by focusing intensively on the workforce needs of a specific industry sector within a region over a sustained period of time, often concentrating on a specific occupation or set of occupations within that industry • Address the needs of workers -- by creating formal career paths to good jobs, reducing barriers to employment, and sustaining or increasing middle class jobs • Bolster regional economic competitiveness -- by engaging economic development experts in workforce issues and aligning education, economic, and workforce development planning • Engage a broader array of key stakeholders -- through partnerships organized by workforce intermediaries • Promote systemic change -- that achieves ongoing benefits for the industry, workers, and community. State Strategy: Framework and Support Regional Sector Initiatives Workforce Intermediary Businesses & Industry Associations *Business Services *Training Services *Support Services *Recruitment Services Workers 13 What’s different about the sector initiative approach? • Sector initiatives are considered highly responsive to industry demand when compared to traditional job-matching and training services because they are: – Problem-oriented, not program-oriented; • Must identify the core challenges (root cause) – Address needs interdependently, not independently; and – Work with industries collectively, not as individual firms. Not another new project or initiative… a new way of doing business Focus: Why State Sector Strategies? Getting Started Engaging System and State Leadership Engaging Industry Leaders Engaging Public Partners Getting Started 10 8 6 Have done 4 Want to do Not a priority 2 0 Decide within Decide within Identify regional Identify key Prioritize a sector Identify industryone department multiple sector initiatives characteristics of strategy at the led workforce to support sector departments to to support and regional sector highest levels of efforts to support initiatives support sector build on initiatives and state government and build on initiatives state sector strategies Getting Started • No single start up model is necessarily better than another • The critical piece to start-up success is developing a sector strategy that builds upon your state's: – Strengths – History – Political environment – Vision and goals Start-up Models Regional Initiatives Scale Up Model Visionary Leadership Model Agency Staff Development Model Private Sector Origination Model Regional Initiatives Scale Up Model Using existing regional sector initiatives to “scale-up” and develop a state level strategy or framework – Advantages • Can use successful regional initiatives to “sell or champion” the value of the model on a statewide basis • Can identify specifically where the state can support regions and “add value” to their initiatives – Challenges • Regions may not welcome what they view as state “interference” in their successful initiative • May be more difficult to weave individual initiatives together into a statewide strategy Visionary Leadership Model Led by Governor, legislature or senior cabinet level appointees – Advantages • Visionary leadership from the top is extremely helpful in catapulting strategy development forward • Helps to brand as a “broad competitiveness strategy”, rather than a “workforce” or “economic development” project • Supports inclusion of various constituents/partners • Originators have the ability to reallocate resources toward the sector strategy – Challenges • Political considerations or goals can prevent the strategy from having adequate time to lay a strong foundation (“not enough ground spaded before implementing”) • Leadership may understand the concept but not understand what it will take to implement • Capacity building- State and local level public partner staff may know little about developing and implementing sector strategies Agency Staff Development Model Originates with senior or mid-level agency staff – Advantages • Staff are likely to have a deep understanding of the sector model and its potential for success • Staff would have access to human resources for development and implementation work • Staff would have some ability to reallocate resources toward the sector strategy – Challenges • Would likely need some evidence of success in their state to get buy-in and additional resources from political leadership • May be viewed as a “project” or “program” (vs. broader systems change) of the originating agency, resulting in challenges around collaboration and buy-in from other units/agencies • May not understand the true nature of a “business led and driven” strategy Private Sector Origination Model Originates with private sector leadership at state level (generally in industry sectors important to the state as a whole- e.g. healthcare, energy extraction, automotive manufacturing) – Advantages • Solidifies the “business led or driven” nature of sector strategies • Once public partner staff gain knowledge about supporting sector strategies, they can expand the model to develop other industry sectors – Challenges • Capacity building- Public partner staff may know little about supporting sector strategies Getting Started: Map and understand your existing sector initiatives • Mapping will provide the base line data you need to identify successes and challenges, and build upon these initiatives to develop a comprehensive state level strategy. • Virtually every state has sector initiatives underway in its regions. • The nature and sophistication of these initiatives will vary greatly – this variation is important to understand Getting Started: Other State Roles • Identifying individuals and/or organizations that would champion the development of a state sector strategy • Engaging leaders from successful regional sector initiatives “What steps can we take to minimize mishaps as we initiate/develop our sector strategies?” Early Pitfall: “We are already doing that” • Public education and training systems often mistake their use of industry advisors for sector initiatives, missing the key element of active partnerships with employers and other stakeholders. • Your response to state level partners can be: – A state level sector strategy that coordinates the sector-focused activities of multiple systems will reduce duplication, close service gaps and make better use of public dollars overall. It will also make it easier for local areas to partner to better serve the needs of industry and workers. Early Pitfall: “We just need more funding” • You will hear from regional system leaders that additional funding is all their programs need to adequately meet industry and worker needs. This may be true to some extent, but if you have mapped and studied the initiatives in your state as a first step, you can respond with the following points: – State sector strategies will “add value” to local initiatives (not discard or re-invent them) by better coordinating funding streams and policies that affect their work; – Sector partnerships at the local level can leverage millions of dollars from public and private stakeholders. Leveraging State Investments: Four Skill Panels (Washington State) 20000 18710 $,000 15000 State Investments 10000 Leveraged Funds 5000 620 0 Early Pitfall: “We tried that and it didn’t work” • Be prepared to explain (repeatedly if necessary) why the “sector partnership” approach is different. Chances are they may have been missing something important the last time around – – – – – – A key partner? A neutral convener? Engaged employers? A clear focus on one industry? State support? Focus: Why State Sector Strategies? Getting Started Engaging System and State Leadership Engaging Industry Leaders Engaging Public Partners Engaging Leadership 10 8 6 Have done 4 Want to do Not a priority 2 0 Identify key state-level partners and roles Engage leaders Convene stateDevelop a from regional level partners common vision sector initiatives, and other leaders and core industry, and/or in a multiprinciples labor in the stakeholder team planning process Provide resources for state level planning and operation Set goals and develop concrete plans to achieve them Engaging System and State Leadership • Successful state sector strategies rely on a set of engaged state system leaders (such as in economic and workforce development, education, human services) who come together: – To discuss common goals in the area of state economic vitality, and – Who understand the value of supporting regional sector initiatives. System leaders must: Develop a "strategic framework” • This framework should: – Articulate a common vision and core principles – Identify key partners and their roles – Identify potential state level resources available to move your strategy forward – Recognize strengths and challenges – Identify champions System leaders must: Create a common vision and core principles • The joint vision should be a statement that maintains the individual integrity of systems or agency missions, but that moves systems toward a common goal. • Core principles could include such things as: – The sector initiatives will be regionally designed and led by employers. – The State will support sector initiatives through policy and funding. – Agencies will be committed to re-allocating existing resources to support sector initiatives. – The sector initiatives will be data driven. State leaders can also: Influence others Communicate and promote sector strategies Leverage and align state resources Provide resources for state level planning and operations System leaders can: Influence Others • Influence their peers or colleagues in other agencies or branches of government, and help them to understand the value of sector strategies. • Even where there is no formal line of authority, leaders can build upon their established relationships or use the “bully pulpit”. State leaders can also: Influence others Communicate and promote sector strategies Leverage and align state resources Provide resources for state level planning and operations State leaders can also: Influence others Communicate and promote sector strategies Leverage and align state resources Provide resources for state level planning and operations State leaders can also: Influence others Communicate and promote sector strategies Leverage and align state resources Provide resources for state level planning and operations State leaders can also: • Communicate and promote sector strategies – “Get the message out” about the value of sector strategies • Leverage and align state resources – Existing program funds can be realigned to meet the common goals of a sector strategy – For instance, economic development or community college funds that previously supported training activities for individual companies can be realigned to support sector initiatives. • Provide resources for state level planning and operations – States should strongly consider providing some base line funding to support the planning and operations of the strategy – the many hours of convening, planning, negotiating, facilitating, researching, coordinating and implementing. “What are effective ways to engage policy makers in Public Education, Higher Education and Industry?” Lessons Learned • Change the nature of the supply side focus to all workers, not just the 5% historically served by the public workforce system • Broaden the financial support of sector strategies beyond WIA funding • Maximize the use of gubernatorial leadership for visibility and traction Lessons Learned • Be inclusive in the membership of your sector strategy steering team and use their time wisely • Include deputy level staff in the leadership steering team planning meetings • Position your sector strategy as a “new way of doing business” that is here to stay Lessons Learned • Align and link effective legacy programs with your sector strategy • Manage transitions in political, administrative and business leadership – Develop “champions” among key industries’ businesses, representatives of labor, and regional leaders – Document your track record and results – Brand the sector strategy and its initiatives as an all-inclusive, broad competitiveness strategy Focus: Why State Sector Strategies? Getting Started Engaging System and State Leadership Engaging Industry Leaders Engaging Public Partners Engaging Industry 10 8 6 Have done Want to do 4 Not a priority 2 0 Engage state-level industry associations and other business and/or union leaders Connect industry associations and Engage industry associations and other business and/or union other business and/or union leaders with state-level partners leaders in promoting or advocating for sector strategies Engaging Industry Leaders • We often think of business engagement as occurring primarily at the regional level, but there are two major categories of engagement at the state level: – Strategy development level: State level business associations and state Chambers of Commerce can be very valuable in bringing a private sector perspective to the state strategy development – State initiative or task force level: Engagement of business associations or groups of industry leaders in a targeted industry for state level initiatives (i.e. health care or manufacturing) Roles of Industry Leaders • Acting as champions of sector strategies – State level business and industry leaders can promote the benefits of the sector approach to their peers, members and constituents at the regional level. • Identifying workforce needs – If recruited and engaged pro-actively, state-level business and industry leaders can help the public partners better understand the strengths, challenges and needs of potential target industry sectors, particularly related to a skilled workforce. Roles of Industry Leaders • Identifying opportunities and barriers – State level business associations can help the state level public partners identify the legislative, public policy, and practice opportunities and barriers that either facilitate or hinder an industry’s ability to be competitive. • Political advocacy – State Chambers of Commerce and business associations can be critical allies in advocating funding for sector strategies with state legislatures. Individual business leaders can also play a crucial role in working with state legislatures to support the development (or eliminate the barriers or disincentives) of sector strategies Key Considerations when Engaging Business Leadership • Respect businesses’ time constraints – Structure the business engagement carefully, making the best use of the business or association leader’s time, expertise, and resources • Add value by using sector data and analysis – Provide early base line labor market data and analysis that acts as a foundation for early discussions and goal setting. • Coalesce business leaders around core principles – Include business leaders as you develop the core principles of your state sector strategy, so that the core principles are demand driven and earn the buy-in by the state and regional business community. Key Considerations when Engaging Business Leadership • Use an intermediary – • Just as regional sector initiatives require an intermediary to convene and coordinate, so does state level sector activity. An intermediary can provide significant assistance to help facilitate and move the state-level strategy forward. Leverage existing relationships in industry associations and networks – Many industries have active associations or groups that meet to identify and solve common industry problems. Public sector partners interested in developing sector strategies should reach out to existing business groups to leverage these existing relationships. Focus: Why State Sector Strategies? Getting Started Engaging System and State Leadership Engaging Industry Leaders Engaging Public Partners Engaging Public Partners • All levels of authority across multiple systems must be engaged in designing and implementing the sector strategy in order to ensure effective policy direction, program design and support to regions implementing sector partnerships. Roles of State Level Public Partners • Fleshing out the policy framework – Once the leadership team establishes the vision, core principles and sector framework, a team of cross-agency management staff will need to flesh out the framework into a strategic action plan - with action steps, persons responsible, resources needed, timelines, etc. • Identifying promising practices – Successful regional sector initiatives exist around the nation. State staff can provide valuable support to their regional initiatives by identifying promising sector initiatives within their own state, in other states, and even globally. Roles of State Level Public Partners • Getting cross-system management “on the same page” – Partner management staff play a crucial role in communicating (and communicating again and again) the common vision and strategic framework to mid-level supervisors, support and field staff. • Providing technical assistance and mentors to regions – State partner staff can provide key technical assistance to their regions. This can take the form of sector academies , one-on-one technical assistance, webinars, or resources provided on web sites, among other forms. Roles of State Level Public Partners • Funding regional sector initiatives – One of the important roles for senior level management is to decide how state level (including federal discretionary) funds will be distributed to regions to support sector partnerships. • Staffing sector steering committees or task forces at the state level – When states have state level sector initiatives in sectors that are important statewide (such as Health Care and Aerospace in Oklahoma), senior management staff often provide staff support or act as intermediaries to these state level partnerships. Tips to Engage State-level Public Partners • Be inclusive but strategic – • As you plan your sector strategy, consider which public partners to “bring to the table.” Err on the side of inclusion but also consider having a smaller “core team” to begin the early development work; then enlarge the team after you have a framework outline. Provide opportunities to develop relationships and camaraderie – It is much easier to reduce turf battles when people know each other in a more personal way. Two day academies or planning sessions can provide an opportunity for informal receptions or a shared dinner experience. Tips to Engage State-level Public Partners • “Spade the ground” and be deliberate about your roll-out – Before you begin rolling out your sector strategy to the regions, be sure you have provided the technical assistance necessary for the regions to be successful. – Planning grants can be an effective strategy • Include middle managers in the development and implementation phases – Since you need middle managers to buy-in to the sector concept, it is important to engage them early in the development process. Next Webinar Promoting Regional Economies Thursday, August 6 2:00 – 3:30 PM Eastern Look for your webinar invitation soon!