Archive for June, 2008

The Convergence of Workforce and Economic Development

Monday, June 30th, 2008

By Dean Whittaker

Two worlds are about to collide – the Workforce Development and Economic Development worlds. Can they play nice together?

Demographics, globalization, and economic re-structuring are propelling these two development efforts towards each other with amazing speed. The retirement of baby-boomers is creating a skill shortage in many industries. Globalization is driving the need for higher-level workforce skills as we attempt to move up the value-added food chain to compete for the sourcing of work. At the same time, work is becoming more mobile, segmented and dispersed. Economic re-structuring, with its automation of manufacturing and a shift to a service-based economy driven more by innovation and design, is causing many workers’ skill sets to become obsolete. The business universe is shifting, and suddenly these two worlds, which have typically operated in parallel but separate universes, are coming together in a whole new way.

I saw the potential challenges in this new relationship at a conference sponsored by our local Workforce Development Board, entitled “Building Partnerships: Workforce and Economic Development.” Curious as usual, I decided to attend the session, expecting to see an even mix of economic development colleagues and my new friends from the Workforce Development world. The audience turned out to be heavily weighted towards Workforce Development representatives. The outstanding session was facilitated by two presenters, one from each of the two worlds.

Though both worlds are concerned with business and economics, their language, funding sources, time frames, constituents, strategies and tactics all differ. But Workforce Development, with its focus on reducing poverty, promoting equity, and seeing things from a worker-centric perspective, and Economic Development, with its focus on efficiency, creating wealth, gaining jobs, and increasing tax bases are going to have to work together. The gravitational pull of the millions of dollars being invested by Workforce Investment Boards (WIBs) and the pending talent shortages on the horizon are bound to force the issue.

What do these parallel efforts bring to the party?  The WIBs bring resources, information, alliances, and expertise on the local labor pool. The ED folks bring relationships with existing and prospective firms, sales and marketing skills, and strong access to community leadership.

What mutual benefits can collaboration between these two efforts bring? What is each trying to accomplish? What do they know about each other?  What are the strengths and weaknesses of both? What areas will benefit from collaboration?

A framework to consider in forming a collaborative relationship includes governance (organizational restructuring), strategy (alignment of mission, function and resources), and tactics (targeting initiatives to achieve specific objectives) within business attraction, retention and new-business formation. But clearly, these new partnerships are going to explore worlds where no man has gone before as they hurdle entrenched business cultures and try to work together.  Certainly the benefits to collaboration will far outweigh the cost of getting along.

Have you seen any good examples of these new partnerships? Drop me a note and I’ll share them in future newsletters. Three examples the presenters shared were the Sand Diego Workforce Partnership, The Workplace, Inc. in Bridgeport, CT, and the WorkSource in Jacksonville, FL.

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You Planted the Seed. Be Sure to Water It!

Monday, June 30th, 2008

By Todd Smithee

So you’ve just come across a very good lead that you really felt was a good fit for your company’s product or service.  The prospective customer has a need for your offer.  You can easily cost-justify replacing their existing solution with your offer.  You might even have the perfect industry reference that will rave about your product and customer service.  So what do you do when you make the call and get told “please call me after the first of the year”?  If you are very organized, you will put a note into your calendar to call back on January 2.  If you are like most people, you will put his or her business card on the corner of your desk, where it will stay until it gets pushed into the trashcan.

Remember, leads are like seeds.  Just because you find an acorn does not mean you will have an oak tree the following day.  You need to plant the seed in fertile soil.  You need to make sure it has sufficient sunlight.  Finally, you need to make sure you water it on a regular basis.  This same process applies to your sales leads.  They need to be cared for over an extended period of time to come to fruition.

When you find a quality opportunity that fits your key criteria, remain patient and nurture it.  Stay in regular contact with your prospect.  Learn about the organization, the industry and how you can be of assistance.  Look for ways you can help your prospect do his or her job.  At some point in the future, an opportunity will present itself.  It may be that your prospect’s manager demands change.  There could be a significant service issue with their existing vendor.  Whatever the reason, it is your job to make sure that your prospect thinks of you as a solution provider.  It may take years (it once took me five), but keep the faith.  The time will eventually come and you will be well positioned to close the deal.

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Crossing Borders

Monday, June 30th, 2008

By Joel Burgess

According to the inter-governmental International Organization for Migration, more than 190 million people currently live outside of their home country. This is equal to about one person for every thirty-five people; what’s more is that the number is growing at the rate of three per cent a year.

In the “Borderless Workforce Survey” conducted by Manpower, almost one third of 28,000 employers surveyed in 27 countries expressed concern that talented workers would go and work in another country. Only 15 per cent of employers believed that governments and businesses were “doing enough to slow the outward migration of talent.”

Moreover, more than one third of 31,000 employees questioned said that they would be prepared “to relocate anywhere in the world for a job.” The top motivation for moving was compensation. Other motivations included learning a foreign language and, for executives, the opportunity to add “worked abroad” to their resumes.

According to the survey:

Top 10 Countries for Recruiting Foreign Talent

  1. China
  2. USA
  3. India
  4. United Kingdom
  5. Germany
  6. Japan
  7. Spain
  8. France
  9. Canada
  10. Poland

Top 10 Preferred Destinations for Work

  1. USA
  2. United Kingdom
  3. Spain
  4. Canada
  5. Australia
  6. United Arab Emirates
  7. France
  8. Italy
  9. Germany
  10. Argentina

Source: Financial Times, Manpower

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Process Mapping

Monday, June 30th, 2008

By Jami Miedema

If one were to ask two individuals the steps they perform to achieve the same end result, chances are, they will have different methods of completing the task.  While this may not matter for some assignments, it may be an inhibitor for getting other tasks finished in an efficient manner.  For companies that are process oriented, like Whittaker Associates, it’s important to utilize process maps to guarantee optimum velocity of work flow.

Process maps are similar to flowcharts in that they plot each detail of a procedure.  A person, or group, is assigned to a step, and the entire process can be seen in chronological order from start to finish.  There are several advantages to using process maps, including:

  • Greater understanding of how a task fits into the overall processes of a firm
  • Bridging communication gaps where processes span across several departments
  • Identifying bottlenecks and possible “hand-off” problems that may arise between process steps
  • Reducing unproductive/wasteful/unnecessary tasks
  • Creating standards to ensure a process is performed in the best manner

More often than not, problems with a firm’s end-product arise from faulty underlying processes, not from the individuals doing the work.  Companies that take the time to map their processes ensure that each process task adds value and is executed in the most rapid, cost-effective way.

Ultimately, process maps guarantee a swift, smooth process that is both efficient and effective.  They also aid the firm and the customer in developing an understanding of the project results/deliverables.  A standardized process will increase work pace, leave no odds and ends to ambiguity and make certain that all employees are on the same page.

Several process mapping tools can be found online.  Most of these are easy to use and free of charge. My favorite is Gliffy Online (www.gliffy.com).  If your company needs to examine or change its processes, process mapping is a great place to begin.

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Emergence of the Virtual World: Wii Fit

Monday, June 30th, 2008

By Maria O’Connell

We are all aware that America has a reputation for obesity, and most disturbing may be the rapidly increasing weight of young people. Many studies have placed strong blame on the video-gaming world – namely the idleness that is linked to this favorite pastime.

What may have been true before is not so true now. Nintendo has invented a new, more fun way to play video games. Released in the fall of 2007, Nintendo’s Wii is an interactive way to play in a virtual world. After its release, users were finding sore muscles to be the result of intense virtual play. The active game quickly and inadvertently turned into a form of exercise.

According to Time, Perrin Kaplan, a spokeswoman for Nintendo, claims that while the Wii was meant to get people up off the couch, it was never meant to be an all-out exercise program. However, as users of Wii Sports utilized the system as a source of exercise, Wii designers cooked up another brilliant idea: Wii Fit.

Released in the U.S. in May of 2008, Nintendo’s Wii Fit has already become incredibly popular. With four different modes–yoga, balance games, strength training, and aerobics–the “game” offers you both variety and fun. Through Wii Fit’s balance board, the program will not only measure your weight, balance, and progress, but will also give you specific feedback on your performance. If you are doing an exercise wrong, it might tell you: “you are too stiff on the right side of your body.” This interactive exercise program has already begun to infiltrate certain niches.

An athletic training professor at Florida Southern College reports to a UK newspaper, the Telegraph, that the department is looking to incorporate the Wii Fit into its rehabilitation program for athletes. As typical recovery exercises can often be quite monotonous, the Wii Fit provides entertainment and feedback. This discovery could lead to a faster, more enjoyable recovery from injury.

Populous retirement communities in Florida have also joined the Wii Fit wave. A newspaper in Fort Myers reports local retirement communities have introduced Wii Fit into weekly fitness programs. It has proven to be a useful way to get older citizens who do not feel comfortable going outside to exercise, working out in the comfort of their homes.

While the original Wii still proves to be a great way to stay active, erasing old worries of video-game-causing obesity, the Wii Fit has bumped video gaming to the next level. The rapid popularity of the program suggests that the fitness enterprise for video games will only expand from here. We can expect to see the virtual world expand with it. If we already use virtual reality for military training, medical exploration, and physical exercise, what heights will we reach for next? And how will it impact our economy?

(Sources: http://pokedandprodded.health.com/2008/06/15/test-driving-the-wii-fit/; http://www.telegraph.co.uk/connected/main.jhtml?xml=/connected/2008/06/17/dlwii117.xml;
http://www.news-press.com/apps/pbcs.dll/article?AID=/20080617/HEALTH/806170318/1013;
http://www.canada.com/topics/bodyandhealth/story.html?id=e4cac3b3-1f74-4616-be23-4d3b27afb65b;
http://www.time.com/time/business/article/0,8599,1584697,00.html.)

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Relationship-Building Blocks

Monday, June 30th, 2008

By Jim Bruckbauer

As professionals, we are experienced enough to know how important relationships are to everything we do. Not a lot of people will tell you that they’ve reached personal or professional goals all by themselves. Besides, many will tell you that reaching a goal is more fulfilling when there are other people around to share in your success.

  1. Remember that successful networking involves asking the question: “how can I help you reach your goals?”
  2. Be able to distinguish between genuine relationship-building from the business-card-exchange gimmicks that are usually associated with “networking.”  There’s no single way to connect with everyone, since each person is unique and communicates differently.
  3. Look for mentors and become a mentor. Having someone who will invest time in your professional and personal goals is much more valuable than any monetary compensation. Returning the investment to someone else holds you accountable as a leader.
  4. Discover what’s interesting about yourself and run with it. You are interesting and others like you for it.
  5. Maintain relationships with everyone who’s important to you personally and professionally. Don’t just contact them when you need a favor.
  6. Never eat alone. Every time you eat a meal, you have an opportunity to connect with someone else, whether that is a co-worker or a future contact. This is from a book entitled Never Eat Alone by Keith Ferrazzi.

Decision makers of companies are making decisions that involve people and involve relationships. They will usually gravitate toward people they can trust, and building trust takes time. That’s why our company stresses the importance of building relationships with companies that may have emerging opportunities in the future, as opposed to companies that are very close to making the decisions we’re trying to predict.  This can give your team the greatest opportunity to use Blocks to build relationships.

Our company tries to provide you with a foundation on which you can place your Blocks. Drop us a line and let us know how we’re doing:

info@whittakerassociates.com

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Placing Your Community on the Global Investment Map: Small Steps You Can Take

Monday, June 30th, 2008

By Vidhan Rana

In recent years, economic development professionals have had to face up to the fact that their community is just a small part of the global economy. Marketing your community just within your state or your region is a challenging job in itself, but now ED professionals are required to market their communities all around the globe. Thankfully, there are some tools out there that can make marketing your community or region to global businesses much easier. One such tool is fDi Atlas.

Launched by Financial Times Business in May 2007,  fDi Atlas is a search and reference tool for business executives and professional advisors involved in cross-border expansion decisions. The web-tool provides detailed investment information about regions all around the globe. It helps businesses looking for geographical areas for expansion identify investment locations suitable for their business sector, assess the business environment, measure lifestyle factors, and pinpoint government agencies that facilitate investment in the region. The web-tool allows users to search either by business sectors (quickly eliminating regions of limited interest), or by relevant regions via their interactive maps. The interactive map also lets users create a side-by-side comparison of different regions around the world.

Here’s where the advantage for economic developers comes in. Local and regional economic development agencies can upload information about their community on fDi Atlas and use that to increase traffic to their website and raise awareness of their region globally. The information page about the region includes maps and pictures with a direct link to the ED website for the region.  It consists of sections like fact file, sector strengths, lifestyle, media center and a page for contact information. Within the fact-file section, you can include population statistics, information about local universities and facts about your region’s physical infrastructure.  Another powerful tool offered by fDi Atlas is the sector-strengths section, where an agency can provide information about various industries present in its area, which can be searched by business executives looking for expansion opportunities.

Currently, the website lists over 40 investment-promotion agencies from Cayman Island to Tunisia and from Italy to Australia. The only region listed from the United States is the State of Nevada. The listing was created by the Nevada Commission on Economic Development. The fact that there is only one region from the United States listed on fDi Atlas shows us that economic development organizations in the United States have not yet fully utilized the opportunities presented by globalization.

According to a study by the United Nations Conference on Trade and Development, FDI inflows around the world have increased from $564.08 billion in 2003 to $1,305.85 billion in 2006, an increase of over 130 percent. In the same period, inward investment into the United States increased from $53.15 billion to $175.39 billion, an increase of over 200 percent. Since inward investment into the United States is increasing faster than investment around the world (which was not the case a decade ago), economic development organizations need to understand the potential of FDI and utilize resources like fDi Atlas.

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Should the Price of Fuel Become a Regional Competitive Advantage/Disadvantage

Monday, June 30th, 2008

By James Edmonson

My wife and I are from opposite ends of the country, Louisiana and Michigan, and own a home in both states.  We are blessed with the ability to avoid both the oppressive heat of the south in the summer and the bitter cold of the north in the winter.  Having two homes 1,100 miles apart means our family travels a lot.

We have literally traveled back and forth, and back again, by planes, trains and automobiles.  Our most recent trip in June was by automobile, which reminded us of a long-standing fact: the State of Missouri has the cheapest gas and diesel prices from the Gulf Coast to the Great Lakes.  The principal reason, I am told, is the state tax on fuel is much less in Missouri than in other states.  Just so you know, we haven’t noticed that Missouri’s roads are in any worse condition than those of other states; in fact we would rank them in the upper-middle range for quality.

As always, we passed through Missouri and timed our fill-up there.  With the price of gas in Missouri well below $4.00 and the price in other states at $4.09 to $4.12, I was certainly strategizing around location. I began to think about whether the price of fuel could one day become an important site-location decision.  Could the price of fuel in a given location become another index in predicting corporate behavior?

The price of fuel directly impacts the cost of doing business for any transportation, logistics or delivery service-based business, and indirectly, any company that uses them.  So doesn’t it make sense to locate your base(s) of operation where at least the first tank of fuel is considerably cheaper?  Of course, increased cost can be passed on to consumers, but it may still be a factor to consider.

Another cost is coming to the forefront that until recently was traditionally a hidden cost.  That cost is the one employees pay to get to work.  Let me just say it is beginning to come out of the closet.
Why would employers care?  They do for many reasons.  Happy employees are productive employees.  With the cost of gas cutting into family vacations, food budgets, and extras, it will start getting ugly at work on occasion.  Plus, the increased rate of inflation based on the increased cost of fuel and food forces employers to provide larger cost-of-living increases or risk losing their best and brightest to companies that do.

Maintaining a happy workforce could have been what Michigan’s Governor Granholm was thinking while proposing a four-day, ten-hour-day work week to reduce employees’ costs to get to work.   More evidence of the importance of fuel cost for the workforce is the daily trips of many Southern Californians to Tijuana, Mexico, where gas is $2.50 a gallon and diesel $2.19.  Drivers are installing larger fuel tanks in an effort to reduce the number of trips across the border for fuel.
An important factor to consider when adjusting workforce schedules around the cost of fuel is the new workforce expectation created that may hound employers in the future.  With increased use of compressed scheduling, the workforce will learn to expect three-day weekends and employers requiring a standard 8 to 5, Monday-through-Friday shift may find it difficult to find quality employees.

So here is my list of things to consider regarding the competitive advantage or disadvantage of the price of fuel which, as we are told, is heading to $5.00 a gallon some day:

  • Fuel-sensitive manufacturers, transportation and service companies will favor lower fuel-cost regions.
  • In regions where fuel costs have become critical to the workforce, employers will adjust work schedules with reduced days and work-from-home programs.  Regions in which this occurs are creating another dynamic to the workforce: expectations for flexible schedules and long weekends.  Companies requiring more rigid work schedules will be negatively impacted and vulnerable to relocation.
  • Regions with low-cost fuel can tout the lower cost and a traditional 8-5, M-F, workforce.  These regions can favor companies that are fuel-cost sensitive or demand traditional work schedules.
  • Regions with high-cost fuel can tout new regional workforces capable of working from home and tolerant of flexible scheduling.  These regions may favor professional, scientific, and technical professions that are migrating toward more flexible work arrangements already.  Employers in this category can reduce office space and cost, too, by sending workers home.  This may cause higher vacancy rates, and the domino effect can go on.  Just think of the possibilities.  One bright note for these regions is that the professional, scientific, and technical workforce can typically afford the higher price of gas.
  • Regions with high fuel costs and historically low education-attainment levels and low median incomes will be most severely impacted.

Like most location factors, the advantages or disadvantages of any factor vary depending on the industry sector.  However, I believe a subtle shift in business locations will begin to occur among high-cost and low-cost fuel regions based on adjustments by employers in those regions and the ability of employees to support their transportation costs.  When these shifts begin to occur, the real question is how to measure impact.

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Tips on Reducing Your Grocery Bill

Monday, June 30th, 2008

By Karla Helvie

Over the past few weeks, I have come home from Meijer having spent well above my preferred weekly grocery allowance. I know that this is a symptom of increasing food prices, but this is the first time I have really seen its effects on my checkbook. With experts predicting prices will remain high for two more years, many people—including myself–are looking for ways to reduce their grocery costs.

One way of reducing grocery costs is clipping coupons, which is time-consuming and tedious. However, seven years ago Stephanie Nelson created a website called www.couponmom.com in order to help others collect coupons easily and quickly. With this system, it is possible to reduce your grocery bills by 50% without spending hours looking through newspapers. As food prices increase, her site is gaining more and more users.

The site has several different options and ways of saving. My favorite option allows you to see what is on sale at your local grocery store that week so you can match those items with available coupons, allowing you to save twice over. You can also see what is on sale at national stores such as Target, Rite-Aid, Wal-Mart, CVS and Walgreens for that week. Another option is looking through lists of the site’s coupons, which are available to print and use in any store. Along with this, you can also sign up to receive email newsletters from different brands, such as Eversave and Coolsavings, which then give you access to additional coupons.

Couponmom gives four steps for users to follow in order to save 50% on groceries:

  • Plan. Planning your list before you go to the store will reduce your grocery spending.  Plan your meals using sale items from the weekly list, paying special attention to meat, chicken and fish sales. A plan also allows you to complete your shopping more quickly and efficiently, which has been shown to reduce the amount of money spent on groceries.
  • Get more than one set of coupons. Trade coupons with a friend, ask friends and neighbors who throw their coupons away if they would give them to you, or buy extra copies of the newspaper when there are many coupons you use that week. You can use these extra coupons for staple items for your household, as well as for items you buy to give to charity.
  • Stock up on products you use when they are Best Deals. Buy several of the same item when the prices are low and coupons available, which will prevent you from ever paying full price for staple goods. Your spending may remain constant while you begin to stock up, but will noticeably reduce as your stockpile increases.
  • Try being brand flexible. Buy brands that give you the best deals that week. Compare brands before you shop–many store brands are unadvertised sale items, but are listed on the Best Deals list on the site.

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