National Work Readiness Council Overview Minnesota Stakeholders February 22, 2007

1. National Work Readiness Council Overview Minnesota Stakeholders February 22, 2007

2. Outline For Today Who we are and what we do Work Readiness and entry level work History of the National Work Readiness Credential Where we are Positioning MN for success

3. National Work Readiness CouncilVision and Mission Vision The Entry Level Workplace is a platform for individual worker success, business innovation and enhanced customer value. Mission To assure excellence and inspire innovation in the entry level workplace.

4. Assure Excellence Define a new standard for measuring real-world, entry level skills National Work Readiness Profile Measure the skills of job seeker/employees against the standard National Work Readiness Assessment Certify that job seeker/employees have achieved work readiness National Work Readiness Credential �Excellence Demands A Standard� that provides workers and employers the ability to measure and certify the skills necessary to excel at creating customer value.

5. Inspire Innovation Use the Work Readiness Profile as Open Source standard to create a multi-stakeholder dialogue and enhance work readiness practice. Promote work readiness as a key to career mobility in the knowledge and innovation economy. Align work readiness with frontline innovation that generates business growth. Focus on success through value creating relationships. �The standard creates platform for workers and employers to generate entry level work innovations that create new value for customers.�

6. NWRC: National Innovators Louis Soares, Executive Director National Work Readiness Council, louis.soares@workreadiness.com Washington: Pam Lund, plund@wtb.wa.gov District of Columbia: Connie Spinner, cspinner@udc.edu Florida: Andra Cornelius, acornelius@workforceflorida.com JA Worldwide: Darrell A. Luzzo, dluzzo@ja.org New Jersey: Henry Plotkin, henry.plotkin@dol.state.nj.us New York: Maggie Moree, margaret.moree@labor.state.ny.us Rhode Island: Kip Bergstrom, kip@ripolicy.org

7. Entry Level Workplace Thirty million individuals in entry level and frontline jobs 25% of workforce, most in service occupations Interact with customers 100x more than management Productivity, especially in services, is low and little understood Wages are low as a result Customer sacrifices value because of poor entry level infrastructure Employees have limited career mobility Firms face constant turnover and limited competitiveness through promotion Economy loses in terms of productivity loss and lack of innovation through customer insights. What challenges does this present to Adult education and workforce systems?

8. Work Readiness System Today This World has: Systems Sector Strategies Dual Customers Career Ladders Assessments/Curriculum Teacher training Science/Tech v. work ready Fed., State and Local rules It is too complex!! This World lacks: A focus that links employee success and business growth A focus on the value of learning in the workplace A common language A spirit of innovation A facilitator of dialogue It needs simplicity!!

9. Adult Educator Viewpoint Investment 100 million adult learners per year 25 hours/student $1,000 per class 15,000 Community College and community based programs Purpose Focus on challenged individuals Empower low literacy adults to be self-sufficient Help them access education and career ladders Challenge Lack resources Methods to demonstrate success Balance needs of learner with demands of outside stakeholders

10. Workforce Development Viewpoint Investment Federal - $ 12 billion (2004) in adult ed. and workforce development. US DOL, DHHS, DOE, DOA State � $10 million to $200 million in adult ed. and workforce development Purpose Workforce pipeline for knowledge economy 40% work in entry-level, low skill service jobs (USDOL, CES) 30% percent have less than basic literacy (NAAL) High-wage knowledge worker jobs v. low-pay, service economy jobs Significant skills gap among new entrants Challenge Measuring outcomes, not outputs/vendor management Balance serving low skill folks with increasing complexity for all job seekers

11. Open Source Work Readiness Requires a standard that: Is simple enough to be used in real time Provides platform for workers and managers to generate relationship, insight and value Benchmarks performance and outcomes Builds social capital for change Promotes individual success and business growth Allows firms to develop novel human capital strategies while leveraging broad-based competencies Creates a common language with other stakeholders: government, education and philanthropy Innovation requires the National Work Readiness Profile!!

12. EL Work And Business Competitiveness Global Competition Increasing customer options of suppliers to meet needs Decreasing customer loyalty and satisfaction Thin margins on traditional factors: price, quality, features New Competitive Strategies Build customer relationships based on brand loyalty Recreate business models with customer insights Key Resources Strategy and technology as tools to integrate customer data and operations Strong brand with readily understood values Entrepreneurial workforce that embodies values and engages customers

13. Simplicity: A Focus on Value Creating Relationships The key players in entry level worker success are: entry Level workers, frontline managers and customers. Success is based on building relationships that create value for: Worker � apply skills/learn, coaching, company knowledge and access to opportunity Manager � increased workplace productivity, reduced turnover, increase customer loyalty Customer � new customer experience, needs met and expectations exceeded. Value creating relationships are based on a standard that integrates: communication, interpersonal, decision-making and learning skills. Work Readiness is being able to develop relationships the create value. Value creating relationships yield better customer experiences and innovation. They align worker and business success. Tools and assessments should be designed to make it easier for workers and managers to create value in real time.

14. Work Ready builds relationships that increase Customer Value

15. Work Ready Delivers Customer Value To deliver customer value, entry level workers must be able to: Believe in and represent the brand and its values. Engage customers, management and peers. Understand the big picture of business strategy. These abilities are rooted in the work ready standard of: Communication Interpersonal Decision-making Life-long Learning

16. National Work Readiness Profile:A Standard for Value Creating Relationships Communication Skills Speaking so others can understand Listen Actively Read With Understanding Observe Critically Interpersonal Skills Cooperate With Others Resolve Conflict and Negotiate Decision Making Skills Use Math To Solve Problems and Communicate Solve Problems and Make Decisions Lifelong Learning Skills Take Responsibility For Learning Use Information/Communications Technology Acquire and Use Information Use Technology Use Systems Understand systems Monitor And Correct Performance Work With Others Diversity Negotiate Serve Clients Demonstrate Integrity Know How To Learn Take Responsibility Allocate Resources Solve Problems Self-Management

17. Not School But Workplace Skills Secretary�s Commission On Necessary Skills - 1991 What skills does work require in the 21st Century? Define Know How needed in the Workplace in 21st Century. Equipped For the Future - 1998 What do workers need to be able to do to be effective given what work requires? Expands Core SCANS and focus on adapting to change. Work Readiness Profile - 2006 What is required for entry level work effectiveness in a changing workplace? Builds on SCANS, 25 sets of industry skills standards, EFF Creates an Open Source Platform for entry level work innovation

18. National Work Readiness Credential 2003 � 2006 Define Work Readiness Skills Employers continue to have issues with finding job candidates with entry level skills. National Institute For Literacy partners with State Workforce Boards in NY, NJ, WA and FL to define work readiness for entry level jobs. Visionary cross-state partnership to create national credential A cross-industry, business-defined standard for entry level �work readiness�. Process 200 private sector firms 250 frontline managers 20 chambers of commerce 75 workforce boards Publish National Work Readiness Profile and Assessment Assessed 1000 folks so far

19. Assessment Web-Based Assessment Easy to support technology requirements. Colleges and businesses can apply for affordable site license and proctor training. Test-time: 2.5 hours, 4 modules WR-Read with Understanding: 30 min. WR-Use Math to Solve Problems: 30 min. WR-Oral Language Test: 30 min. WR-Situational Judgment Test: 45 min. Value priced assessment: $65 for whole test, maximum $15/module re-take. Results Available within three week. Value Add: Enhance recruitment process with key skills, screening tool. Reduce Cost-per-hire, Time-to-fill, Turnover by ensuring better organization fit. Increase productivity by providing benchmark for right skills mix. Improve ROI on training by targeting skills improvement needs and managing vendor performance. Increase customer satisfaction.

20. Assessment Outputs Individual�s score based on passing all four modules of assessment. Score Options Pass = work ready No Pass = needs more skill development to demonstrate work readiness Development Report Provides information strengths and weaknesses

21. Site Network Washington 7 Florida 4 Rhode Island 1 New Jersey 6 New York 8 Washington D.C. 9 Texas 3 North Carolina 1 Tennessee 2 Pennsylvania 1 Oregon 5 Indiana 1 Ohio 1 Connecticut 1 Minneapolis 1 Maine 1 Massachusetts 2 Kentucky 1

22. Data So Far 1000 test taken Demographics 63% African American 21% White 16% Hispanic Majority of test takers High school or lower attainment 71% HS, GED or below 29% 11th grade or below Observations So Far, test difficulty Math for Decision-making Reading with Understanding Oral Language Test Situational Judgment next

23. Positioning For Success National Work Readiness Profile Easy to understand guide to teaching and training Useful tool for guiding mentoring relationships National Work Readiness Assessment A way for clients to show competency A tool for programs to demonstrate efficacy to funders National Work Readiness Credential A meaningful short hand for real world skills A common language for all stakeholders

24. Minnesota as an Innovator Launching WRC curriculum Committed group of stakeholders Adult education, Workforce Development, Business Building policy from the bottom up: NWRC will work with Minnesota to make your workforce�Work Ready!!

25. Questions & Thank You

26. What We Believe The Entry Level Workplace is part of the knowledge and innovation economy. Employees can excel & innovate on the frontline, build confidence and move up. Excellence provides opportunity for employees and growth for business. Innovation is generated on the frontline with customers. Excellence and Innovation occur when employees and managers build relationships with customers to create value. Value creating relationships are based on a standard that integrates: communication, interpersonal, decision-making and learning skills. Work Ready means being competent in these integrated skills. Entry Level employees and frontline managers learn by doing and reflecting. Employee success, business growth and customer value grow together.

27. Justin Profile

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29. Dad Profile

30. Enhanced Customer Value alignsIndividual Success and Business Growth

31. What We Believe The Entry Level Workplace is part of the knowledge and innovation economy. Employees can excel & innovate on the frontline, build confidence and move up. Excellence provides opportunity for employees and growth for business. Innovation is generated on the frontline with customers. Excellence and Innovation occur when employees and managers build relationships with customers to create value. Value creating relationships are based on a standard that integrates: communication, interpersonal, decision-making and learning skills. Entry Level employees and frontline managers learn by doing and reflecting. Employee success, business growth and customer value grow together.

32. Equipped For The Future 1994 -1998 EFF research project Asked 1500 workers, �What do you need to know and be able to do to be successful in the 21st Century?� Publish landmark Equipped For the Future Applied Skill Standards. Life roles: worker, parent, citizen. Skills areas: Communication, interpersonal, Decision-making and learning 34 states adopt standards over 5,000 educators train to teach to standards. 1998 � 2000 Using the Standards Publish User guide on how to teach with EFF standards. Establish performance levels for standards Begin to explore Worker Role Map and Work Readiness Skills.

33. Valid, Reliable, Legally Defensible

34. Business Viewpoint Investment Estimated $ 10 -15 billion investment in entry level training annually.* Purpose Find and retain the best talent Build stronger customer relationship and value Enhance top and bottom-line performance New products, new markets Challenges Measuring ROI of training, is it useful and applicable? Deciphering education and workforce suppliers, assessments and tools Managing cost and time of up-skilling new and existing team. *New American Workplace, 2006, 10 � 15% of est. $60 billion on training

35. Taxonomy Of Credentials

36. EFF and NWRC History 1994 Goals 2000: Educate America Act enacted White House, Congress and National Governors Association all support Goal 6: Every adult American will be literate and possess the knowledge and skills necessary to compete in global economy, exercise the right and responsibilities of citizenship. National Institute for Literacy to implement Creates a signature project: Equipped For The Future

37. Entry Level Workers Are With Customers More Entry Level or frontline workers interact with customer more than any other part of the organization: ___ x more than?* Frontline management 4x Middle management 25x Executive management 110x Are your workers ready for this responsibility? *McKinsey Quarterly 2006 and Moments of Truth, Collins, 1989