Overview: Workforce Alignment

1. Overview: Workforce Alignment Senate Higher Education and Workforce Development March 13, 2013 CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission of McKinsey & Company or the Itasca Project is strictly prohibited

2. Implementation teams Higher education has been a focus of Itasca’s work since late 2011 Task force gathered facts Task force developed priorities Steering committee TF TF SC • Report “Higher Education Partnerships for Prosperity” issued July 2012 • Taskforce launched October 2011 • Focused on understanding and scoping issue in first ~3 months • Taskforce developed priorities • Consulted with Advisory Group of ~40 stakeholders statewide to refine and vet priorities • Implementation teams launched against 3 priorities • Taskforce converted to a steering committee to provide guidance to implementation teams Source: Itasca workforce alignment team - Confidential and preliminary – not for distribution

3. Minnesota can be a globally competitive center of talent and innovation if business and higher education unite around four strategic priorities • Outputs from state higher education will increase in value and relevance to Minnesota’s economy • Inputs to state higher education will be used with greater efficacy and efficiency • Align academic offerings with workforce needs • Form new collaborations across higher ed. to optimize system-wide intellectual assets and efficiency • Business communicates workforce needs to higher education, and the two work hand-in-hand to see • that occupational and foundational skills • students gain through programs ranging • from certificates to graduate / professional degrees prepare them not only for a good and fulfilling career • hat meet the states future • workforce needs • Higher education strengthens Minnesota’s world-class position in core industries by leveraging unique program strengths across institutions to create • a sum greater than its parts, and by pursuing • system-wide operational efficiencies that • help moderate costs born by students • and increase return on investments • Foster an ecosystem of research and innovation • Graduate more students, and • demonstrate their capabilities • Research, innovation and graduate / • professional education foster economicdevelopment, create new knowledge and • enhance learning; institutions partner with business • to pursue common lines of inquiry, translate research, • disseminate cutting-edge knowledge, and solve real- • world problems • Institutions of higher education have • higher student persistence and completion • rates, and provide objective measures of • learning outcomes to better ensure graduates’ • development of capabilities and communicate these • to potential employers Minnesota will drive long-term economic prosperity with a higher education ecosystem that brings educators and employers together to create world-class clusters of talent and innovation Source: Itasca workforce alignment team - Confidential and preliminary – not for distribution

4. PRELIMINARY Strategy: Workforce Alignment • Align academic offerings with workforce needs Over the past 18 months, this taskforce has worked with employers, students, career centers and higher ed institutions across the state to identify tools / information sources that could facilitate engagement and collaboration to meet future workforce needs. These tools are being piloted around the state, with findings expected mid-summer. Source: Itasca workforce alignment team - Confidential and preliminary – not for distribution

5. The Workforce Alignment Team is made of leaders from the employer, higher education, foundation, government, & nonprofit sectors Name Role Organization • Steve Rosenstone Chancellor Minnesota State Colleges and Universities Chairs • Scott Peterson Exec. VP & Chief HR Officer Schwan’s Education • Mary Nichols Dean, College of Continuing Ed University of Minnesota • Michelle Chevalier Director Graduate Business Career Center University of Minnesota • Paul Pribbenow President Augsburg College • Jeanne Herrmann COO Globe University Business • Judy Werthauser VP, Human Resources Target • Susan Bies Vice President, Human Resources Cargill • Ann Gibson VP, Federal Relations and Workforce Minnesota Hospital Association • Collin Barr President Ryan Companies • Traci Tapani Co-President Wyoming Machine Govern-ment & Community • Kathy Schmidlkofer Chief Operating Officer Greater MSP • Bill Blazar Sr. VP, Business Development & Public Affairs Minnesota Chamber of Commerce • Mary Rothchild Director for Strategic Partnerships & Workforce Development Minnesota State Colleges and Universities • Amy Walstien Director, Education & Workforce Development Policy Minnesota Chamber of Commerce • Kathy Gaalswyk President Initiative Foundation • Andrea Ferstan Director of Income Strategies Greater Twin Cities United Way • Deb Belfry Career Development Director Bloomington Public Schools • Frank Forsberg VP, Community Impact Greater Twin Cities United Way • Robin Sternberg Director, Job Creation Initiative DEED • Kevin Wald CEO SpecSys • Cynthia Bauerly Deputy of Workforce Development DEED • Lynn Plaschko HR Director, HR Solutions Development and Shared Services General Mills • Deb Serum Supervisor, Analysis & Evaluation Office DEED • Coralea Cline VP, Human Resources Pentair Source: Itasca workforce alignment team - Confidential and preliminary – not for distribution • Inez Wildwood Chair Governor’s WDC

6. The Workforce Alignment effort is focused on ensuring we have the right number of graduates and job seekers with the right capabilities needed to meet Minnesota’s future workforce needs • Higher Education, career counseling and workforce training • Employers • Students & job seekers • GOAL: • Workforce demand = workforce supply Source: Itasca workforce alignment team - Confidential and preliminary – not for distribution

7. Progress to date has been informed and shaped by leaders from the employer, higher education, foundation, government, & nonprofit sectors Source: Itasca workforce alignment team - Confidential and preliminary – not for distribution

8. NOT EXHAUSTIVE 600+ stakeholders provided valuable insights about challenges employers, academic leaders and career counselors face in addressing workforce alignment “I’m tired of being asked about my needs – I want to see things CHANGE.” “Some schools use advisory meetings more to brag and network than to really seek guidance. I think we need more data and less opinions in the room” “I don’t have as much trouble finding fresh college grads – I need help finding people with specific experience or technical skills” Employers… “I need help finding which schools have the candidates I need” Academic leaders… “We are extremely focused on understanding & meeting the needs of employers, but we need real time data and better employer engagement to make that happen” “We truly value our employer program advisory meetings, but we need to find a way to make them more engaging and data driven so the conversation isn’t always focused on the loudest voice in the room” “We need employer feedback to make sure we are teaching the right content, but it is incredibly difficult to get the right people in the room to make that happen” “Working through career counselors and academic advisors is a great way to help a large # of students & job seekers know what skills & jobs are in demand” “Accessing real time data will help, but our counselors are completely under-resourced and spend most of their time dealing with non-counseling activities” “Knowing the top employers and skills in each industry and occupation in real time will make a HUGE difference” Career counselors… Source: Itasca workforce alignment team - Confidential and preliminary – not for distribution

9. Not enough candidates – long times to fill open positions • Shortened hiring times – more students and job-seekers informed regarding job demand on educational paths to fill in demand jobs • Candidates with missing skills – difficulty finding candidates with the right skills or experiences to meet changing employer needs • Candidates possess the needed foundational and technical skills – leading to enhanced business and community growth driven by talent advantage • Unclear where to turn for help – difficulty identifying academic institutions that can serve as partners to meet talent needs • Appearance of lack of responsiveness – limited visibility of actions taken by academic institutions based on employer feedback • Efficient and strategic coordination between academic institutions, candidates and employers – easy for employers to partner and connect with relevant institutions • Collaborative partnerships between employers and higher ed– fact-based decision making focused on faster response time to labor market changes We used stakeholder feedback to define success for Workforce Alignment in the state of Minnesota • Goal: We have the right number of graduates and job seekers with the right capabilities needed to meet Minnesota’s future workforce needs • From… • To… Source: Itasca workforce alignment team - Confidential and preliminary – not for distribution

10. To address this opportunity, the Workforce Alignment team is piloting tools to bring information and enablers to improve decision making and transparency between stakeholders • Goal: • We have the right number of graduates and job seekers with the right capabilities needed to meet Minnesota’s future workforce needs • Employers • Students & job seekers • Higher Education, career counseling and workforce training • Better • decisions • Better • decisions Information Tools Enablers Source: Itasca workforce alignment team - Confidential and preliminary – not for distribution

11. A set of pilots are testing the impact of new data tools and employer engagement approaches Pilot Pilots are testing… Example Academic planning process pilot … impact of new data tools and approaches on new program decisions IT programs planning at RCTC Curriculum alignment process pilot … impact of real time job data & “cloud-based” employer feedback tools on curriculum alignment decisions Operations management degree at the University of MN Employer advisory process pilot … impact of new data tools and engagement approaches on employer advisory boards and decisions Shaping a new advisory board at Augsburg College Post-secondary advisory with area high schools with the NE Career Edventure program … impact of real time job data and career/ed data on student & job seeker decisions Career planning process pilot Source: Itasca workforce alignment team - Confidential and preliminary – not for distribution

12. Workforce Centers • MnSCU colleges • MnSCUuniversities • University of Minnesota • Anoka • Ramsey • Hennepin • Wash- • ington • Dakota • Scott The pilots involve hundreds of academic, employer and career counseling stakeholders across the state • 20+ Higher Education institutions: • University of Minnesota • 16 MnSCU colleges • 3 MnSCU universities • Augsburg College • Globe/ MN School of Business • 5 Workforce Centers including adults and youths/ high schools • Employer Advisory Boards for the following programs: • Strommen Center for Meaningful Work • First line supervisors of production workers • Mobile application development • Business Analyst • Operations Management • Automotive technician • Numerous manufacturing programs (CNC, welding, mechatronics, others) • Health informatics • Many other advisory boards at pilot schools! • Private, includes for-profit • ` Source: Itasca workforce alignment team - Confidential and preliminary – not for distribution

13. Next steps for our team Learn from the pilots • Identify which tools and processes have the greatest impact on improving information, engagement and decisions • Identify barriers to change, key enablers for success and capture case studies to build momentum • Codify and share pilot results in Q2:2014 Make the effort sustainable • Develop approach to ensure ongoing employer – higher ed engagement • Scale most effective tools & approaches • Transition work to long-term owner to ensure momentum and sustainability Source: Itasca workforce alignment team - Confidential and preliminary – not for distribution