Overview: Itasca Workforce Alignment Pilot efforts

1. Overview: Itasca Workforce Alignment Pilot efforts May, 2014 CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission of McKinsey & Company or the Itasca Project is strictly prohibited

2. = Today’s focus In 2012, the Itasca Project launched a Minnesota Higher Education Task Force to investigate this issue and several others Who is the Itasca Project • The Itasca Project • An employer-led civic alliance made up of private sector CEO’s, the Governor, the Mayors of Minneapolis and St. Paul, County Commissioners, Chair of the Met Council, the leaders of the Higher Education institutions, and the leaders of major foundations and the United Way Build a thriving economy &quality of life in the metro region Reduce and eliminate socioeconomic disparities Itasca Project goals Itasca general priorities Generate high quality job growth Improve our region’s education system Advance a comprehensive and aligned transportation system Itasca MN Higher Education Strategy MN Higher Ed priorities Align academic offerings with workforce needs Foster an ecosystem of research and innovation Form new collaborations across higher ed. to optimize system-wide intellectual assets and efficiency Graduate more students Today’s focus Itasca Workforce Alignment Team Source: Itasca workforce alignment team - Confidential and preliminary – not for distribution

3. 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 • Inez Wildwood Chair Governor’s WDC

4. 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

5. 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

6. Not enough candidates • Long time to fill open positions • Students & job seekers not aware of or not interested in growing / hot occupations • Plenty of candidates • Shortened time to fill open positions • More students and job-seekers informed regarding job demand on educational paths to fill jobs in demand • Candidates with missing skills • Difficulty finding candidates with the right skills or experiences to meet changing employer needs • Employer frustration and high talent acquisition costs • Candidates possess foundational and technical skills needed for the future • Employers can hire the talent they need to grow • Employers can invest more in developing talent • Inconsistent coordination • Difficulty identifying academic institutions that can serve as partners to meet talent needs • Limited visibility into actions taken by academic institutions based on employer feedback • Efficient and strategic coordination • Easy for employers to partner and connect with relevant institutions • Fact-based decision making focused on faster response time to labor market changes and planning for future needs 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…

7. 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

8. Workforce Centers • MnSCU colleges • MnSCUuniversities • University of Minnesota • Anoka • Ramsey • Hennepin • Wash- • ington • Dakota • Scott We launched a set of pilots in January that 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 • `

9. The 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 Healthcare programs planning at Winona Curriculum alignment process pilot … impact of real time job data & “cloud-based” employer feedback tools on curriculum alignment decisions Automotive technician program with the Transportation Center Employer advisory process pilot … impact of new data tools and engagement approaches on employer advisory boards and decisions Manufacturing programs advisory groups at South Central Student success day at MCTC … impact of real time job data and career/ed data on student & job seeker decisions Career planning process pilot

10. Initial feedback has been encouraging from pilot participants… SOURCE: Improve Group – Pilot kick off surveys

11. Pilot participants are using the tools and data as we intended to inform decision-making PILOT PARTICIPANT MID POINT CHECK IN • Pilot participants told us they are using the tools to achieve four primary goals: • Increase high level understanding of the labor market • Support course or program-related decisions • Improve engagement with employer community • Help students and job seekers find the careers they want SOURCE: Improve Group – Mid point surveys

12. Students, job seekers and employers are also seeing value in the new data sources to their decision-making processes PILOT PARTICIPANT MID POINT CHECK IN • Employers found that the new data and information improved the quality of the employer advisory meetings, discussions and guidance they were able to deliver to the academic institution • Students and job seekers are finding the data on which skills are in demand by employers to be very valuable in their job search and career planning process SOURCE: Improve Group – student, job seeker and employer surveys

13. We are also getting insights into potential barriers and approaches to scaling the pilots efforts DETAILS IN APPENDIX • Challenges to roll-out: • Stake holder resistance: tendency to trust personal experiences and opinions over new data sources, aversion to focusing on the needs of employers • Tool-specific frustrations: difficulty to find the information needed, general complexity • Lack of time or resources: competing priorities • Approaches to scale: • Develop strong change management approach: strong leadership support at every site, arm participants with a “change story”, target the influencers first, more communications • Provide more high quality training: increase frequency of trainings, bring more “real-life examples” to the trainings • Create a strong support network: centralized “swat team” of data tool experts • Create reinforcers to shift behavior: Require data and analysis from the tools in existing processes, celebrate and reward users SOURCE: Improve Group – Mid point check ins

14. Next steps for our team Learn from the pilots – Wrapping up today! • 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 and third party evaluation 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

15. What are your reactions to the progress to date? • Where do you see opportunities to incorporate new information sources into academic planning? • How would you roll-out any future tools/ information sources? What would be needed to ensure the tools are used at a campus level?

16. Appendix • Pilot participants • Additional detail on pilot approach

17. The pilots involve hundreds of academic, employer and career counseling stakeholders across the state • Four year colleges & universities: • Augsburg College • Globe / MN School of Business • MSU-Mankato • MSU-Moorhead • University of Minnesota • Winona State University • Collaborative efforts with several colleges • Transportation Center (4 colleges) • 360 Center for Manufacturing (13 colleges) • Two year colleges: • Alexandria Technical & Community College • Minneapolis Community & Technical College • Riverland Community College • Rochester Community & Technical College • Saint Paul College • South Central College • Higher Education • Career counselors from five workforce centers working with adults and youth on training/ education plans • Anoka County • Minneapolis • NE Office of Job/ Training (includes high Schools in Career EdVenture) • Academic/ career counselors at colleges participating in pilots • Students & job seekers • Stearns/ Benton counties • SE MN Workforce Development Inc. (6 locations) • Advisory Boards for the following programs: • Strommen Center for Meaningful Work • First line supervisors of production workers • Mobile application development • Business Analyst • Operations Management • Employers • Automotive technician • Numerous manufacturing programs (CNC, welding, mechatronics, others) • Health informatics • Many other advisory boards at pilot schools!

18. Overview of pilots Pilot Challenge Approach Impact Academic planning process pilot Academic leaders need better information & feedback in order to more quickly meet student and employer needs Test impact of new data tools and approaches on new program decisions Programs launched faster to meet needs of students & potential employers Curriculum alignment process pilot Employers & academic leaders need faster, more scalable ways to work together to align curriculum Test impact of real time job data & “cloud-based” employer feedback tools on curriculum alignment decisions Aligned curriculum & better prepared graduates Employers & academic leaders want employer advisory meetings to be more data-driven & strategic w/ more engagement between mtgs. Test impact of new data tools, surveys, and collaboration tools on curriculum advisory decisions Higher impact employer advisory meetings leading to aligned programs & prepared graduates Employer advisory process pilot Career planning process pilot Career counselors need better tools for helping their clients understand the labor market & their career/ed options Test impact of real time job data and career/ed data on student & job seeker decisions More students & job seekers pursuing high demand jobs SOURCE: Source

19. Situation # 1You’ve been asked to join the employer advisory committee of a local technical college to help them improve the quality of their manufacturing-related programsThe day before the meeting they tell you they’d like you to tell them what production-related manufacturing jobs are in demandYou can either share your opinion based on what you’ve heard from HR & from your peers or… Source: Itasca workforce alignment team - Confidential and preliminary – not for distribution

20. …you could discuss data listing the top 20 production-related jobs with the most job postings over the last 4 months & their growth rate vs. last year Top 20 manufacturing production-related jobs w/ most postings over the last 4 months Number of unique online job postings per occupation between 6/17/2013 and 10/15/2013 in Minnesota % change in # of job postings % change vs same 4 months last year Source: Help Wanted Online (HWOL) – Part of Wanted Analytics, Itasca workforce alignment team - Confidential and preliminary – not for distribution

21. Situation # 2When you show up at the meeting, they ask you what skills they should focus on developing in their graduates if they want to target skills that will be useful in a wide variety of production roles. They also want to know what certifications are most valuableYou know your answers to these questions, but the institution generates the following report to show that you are not the only one looking for these skills and certifications Source: Itasca workforce alignment team - Confidential and preliminary – not for distribution

22. Although some production-related roles require certifications, most job postings focus on specific hard & soft skills Top 20 skills for production-related roles in Minnesota # of times skill mentioned in job posting Top 20 certifications for production-related roles in Minnesota # of times skill mentioned in job posting Source: Help Wanted Online (HWOL) – Part of Wanted Analytics, Itasca workforce alignment team - Confidential and preliminary – not for distribution

23. Situation # 3During the meeting, they are really interested in the first line supervisor role since there’s so much demand, however, they want to make sure this year’s demand isn’t an anomalyLuckily, since you’re part of an Itasca pilot, you have access this information to add to the discussion… Source: Itasca workforce alignment team - Confidential and preliminary – not for distribution

24. The number of job postings for first line supervisors in Minnesota has grown by 40% per year for the last four years Total monthly postings for first-line supervisors Number of unique online job postings between 6/17/2013 and 10/15/2013 40% CAGR Source: Help Wanted Online (HWOL) – Part of Wanted Analytics, Itasca workforce alignment team - Confidential and preliminary – not for distribution

25. Situation # 4Now the school is working to align the curriculum for first-line supervisors with the needs of employers in the region. You (and the other employers on the advisory group) connected some of the school faculty to your best first line supervisors and their managers, who logged into to web-based system to quickly update a list of “detailed work activities” to help the professors know exactly what first line supervisor students needed to learn how to do.The faculty then uploaded the learning objectives from their existing classes to see how well their courses were aligned with your needs. When you showed up to meet with the professors, they showed you this report… Source: Itasca workforce alignment team - Confidential and preliminary – not for distribution

26. ILLUSTRATIVE The “goodness of fit” report highlights some areas to address to make sure our content is focused on the highest value, most relevant topics • Sample Degree Program match of learning objectives to skill requirements • for first line supervisors of production workers in MN (SOC: 51-1011, 11-3051)