Developing Community-Based Strategies for Economic Re. Engagement: A Network Approach A Solutions Lab Scott Hutcheson Ed Morrison Purdue Extension, Economic & Community Development Ed Morrison Distributed through I-Open with a Creative Commons 3. 0 Attribution License: Please acknowledge source as Ed Morrison and I-Open
Why Networks? Ed Morrison Distributed through I-Open with a Creative Commons 3. 0 Attribution License: Please acknowledge source as Ed Morrison and I-Open
We Live in a Networked World 3
Movies in the Pre-Networked World – Who made the Wizard of Oz? • Metro-Goldwin Mayer 4
Movies in the Networked World – Who Made Spiderman 3? • Columbia Pictures • Marvel Enterprises • Laura Ziskin Productions • Columbia Pictures Industries • Sony Pictures Imageworks (SPI) (special visual effects and animation) • Imageworks (additional visual effects) (as Imageworks India) • USC Centers for Creative Technologies (visual effects) • House of Moves Motion Capture Studios (facial motion capture) • Gentle Giant Studios (3 D scanning) • Cafe. FX (additional visual effects) • Giant Killer Robots (additional visual effects) • BUF (additional visual effects) • Evil Eye Pictures (additional visual effects) • Tweak Films (effects: Mudman) • Furious FX (additional visual effects) • Eden FX (additional visual effects) • LOOK! Effects (additional visual effects) • Digital Dream (additional visual effects) • X 1 fx (additional visual effects) • New Deal Studios (miniature effects) • Lund Background Pictures (translite backgrounds) • Tata Elxsi Visual Computing Lab • Halo Casting casting • Film Art art consulting • Atlantic Cine Equipment Technocrane 15 • Central Casting extras casting • Chapman/Leonard Studio Equipment cranes • Chapman/Leonard Studio Equipment dollies • Deluxe prints • Dolby Laboratories sound post-production • Filmtools expendables • CFrontline Design specialty costumes • Hollywood Studio Symphony orchestra • Inflatable Crowd Company, The inflatable mannequins • Monster Picture Crane stunt rigging crane • Orbit Digital Avids • Packair Airfreight international logistics • Panavision cameras and lenses • Pictorvision stabilized ground head • Port Chester High School Marching Band • Prologue Films main and end titles design • Record Collection soundtrack • Reel Security production security • Reel Team, The loop group • Rockbottom Rentals cell phone, cellular fax, and modem card rentals • SPDE Domain Names domain hosting • Show. Biz Enterprises draperies • Sony Music Entertainment advertising • Sony Pictures Digital website • Sony Pictures Stock Footage stock footage • Sony Pictures Studios Scoring Stage music recorded at • Sony Pictures Studios post-production sound services • Spider-Man 3 Dôin Iinkai advertising • Sylvia Fay/Lee Genick & Associates Casting extras casting: New York • Technicolor Digital Intermediates digital intermediate (as Technicolor Culver City) • Technicolor New York digital intermediate 5
We Live in a Networked World 1 Company Network of 56 Companies 6
Business in a Networked World 7
How Communities Functioned in a Pre-Networked World Townships Workforce Economic Dev. Social Service Cities/Towns Chambers Counties Feds State Higher Ed K-12 8
How Communities Function in Today’s Networked World Townships Workforce Economic Dev. Social Service Cities/Towns Chambers Counties Feds State Higher Ed K-12 9
We need new approaches to build networks in our communities and regions Idaho Workforce Summit: Strategic Doing workshop to align, link and leverage assets within networks 10
Vast job losses are re-making our economy 11
Job losses are deep and wide spread 12
Re-engagement involves charting pathways and making them as productive as possible ‣ This workshop will explore the pathways and the networks needed to make them more productive ‣ You will design your own networks in the discussion
Company refocuses and retrains
Company restructures and lays off large numbers
Employees find work in a closely related firm
Individual retrains for a growth cluster
Individual wants to start a growth company
Individual looks for a life style opportunity
Individual settles for lower pay (but may begin other paths as well)
Individual retires or stops looking
Individual continues to look for a job
Our current situation requires us to innovate and form new re-engagement networks ‣ The economic downturn is more severe and will last longer than our traditional approaches are designed to handle ‣ We cannot scale up by building larger organizations ‣ We can meet the challenges by linking and leveraging assets through networks ‣ We need to focus on designing eight types of re-engagement networks
1. Strategy Redesign Network (Layoff Aversion)
Strategy Re-Design Network (Layoff Aversion) Question: How do we connect those with ideas for new technologies or markets with those who need to diversify? Idea: Workforce, development, economic development, and a research university create a network to identify “capacities” of troubled firms and available technologies at the university, new technology is adopted, existing workers are trained, firm’s bottom line improves Example: Tool & die shops are hurting, research university is doing work in nanostructured coatings technology, tool and die shops adopt new technology and train workers – tool life increases, waste decreases, the shop is more profitable, layoffs averted, and workers have a new transferrable skill – Nanostructured Coatings Technology Certificate
2. Assessment and Guidance Network
Assessment & Guidance Network Question: How do we create new networks to better help people assess their skills and guide them toward training to enhance their skills and positions that are best suited for their skills? Idea: Local one-stops, employers, and training providers create a new network to provide comprehensive assessment and guidance services. Example: The Tecumseh Area Partnership (North Central Indiana’s Regional Workforce Operator) created two REACH (Regional Employment Assessment Center for Hiring) Centers where they work closely with local industry to profile the skills needed for jobs, assess prospective workers skills, identify the gaps, broker training to fill the gaps, then move prospective workers into available jobs.
3. Direct re-employment Network
Direct Re-Employment Network Question: How can we efficiently and effectively move workers from one employer to another to do jobs that require the same skill sets? Idea: Local industry, workforce development, and an economic analysis center partner to form an “industry cluster” based on skills and create a pool of workers that can move fluidly between one employer to another. Example: The Purdue Center for Regional Development is working on a web-based tool to identify “Occupational Clusters” in local regions. Communities can use that information to identify firms that have similar skill requirements. A “Cluster Coordinator” can begin working with those firm to develop skills -based clusters. Firms can work together to do joint training where needed, and pool workers.
4. Growth Cluster Network
Growth Cluster Network Question: How can we anticipate what types of firms a likely to grow, even in a troubled economy and get workers read for the resulting jobs? Idea: Workforce development, economic development, training providers, K-12, and Extension create a new network to identify growing clusters, profile the growth occupations, and develop new training and pipeline programs. Example: Several counties in North Central Indiana are seeing growth related to new wind farms. They have put together several initiatives to train workers for these new jobs - programs in high schools, adults at a new community-based instructional center, and working with firms by adding an Extension Educator focusing on Alternative Energy.
5. Skunk Works Network
Skunk Works Network Challenge: Unemployment is cutting deep with even engineers and highly-trained technical workers being laid off How do we keep them in the community, leverage their brainpower, and launch new enterprises? Idea: An incubator, SBDC, and a university create a network to find new or “orphaned” technologies and create a place for displaced high-tech workers can advance those technologies and make launch businesses Example: Responding to the massive layoffs at Delphi, Kokomo’s Inventrek launched the Skunk Works program that provides lab space, training, and business support services for a group of former Delphi employees. They are working with orphaned Delphi technologies and other innovations to try and launch new business. As a side-benefit they are gaining R&D expeience by forming their own design shop and seeking work from other firms that need design work done.
6. Self-employment Network
Self Employment Network (1) Challenge: Some laid off workers would rather launch their own business than seek another “job. ” How do we create a network to support these individuals? Idea: What if we were able to tweak the unemployment assistance program so that someone could use unemployment support to launch their own business (make a job) instead of applying for work (taking a job). Example: A group in Pennsylvania partnered with their state department of workforce development, U. S. Department of Labor, and their state’s SBDC to get a waiver to create the Self. Employment Assistance Program (SEAP). In a pilot program 2% of unemployed people took this track, 75% of those were successful in launching a new business and were still in business three years later making, on average, $5 K more per year than those who “took a job. ” A significant number grew enough to create additional jobs. All states can adopt this program but legisltation is required to do so.
Self Employment Network (2) Challenge: We know that about 2% of people who loose their jobs would like to start their own business and that a lot of businesses get started out of the home. Local land use ordnances, however, are very restrictive about home-based businesses. Idea: Zoning ordinances could be changed to be more conducive to home-based businesses. Example: Some communities have realized that the best incubators for new business can be the garages and homes of its most entrepreneurial residents. They have set some new zoning standards to allow some businesses to operate out of residential neighborhoods as long as they meet certain criteria. A dislocated salon worker, for instance may be able to do salon work out of her home as long as no more than ten cars come and go each work day.
7. Career Ladder Network
Career Ladder Network Challenge: A community’s only growth in jobs is coming from a perspective big-box retail chain known for hiring mostly lower-skill workers and paying low wages. High employee turnover is part of their business model. Idea: Municipality often place requirements on the big-box retailers related to signage, landscaping, etc. What if the community insisted that the retailer, besides selling their wares, would also be in the talent development business. Example: Some communities are considering talent-based economic incentives along with and sometimes instead of typical tax abatements. Local government, a big-box retailer, and training provider partner to devote some of the space of a new large retail to operating a learning center. The retailer encourages their employees to take classes at the learning center creating a pipeline of better workers ready for higher-skill, higher-wage jobs. Word gets out that this community has a skilled workforce.
8. Career Exploration Network
Career Exploration Network Question: How can we teach people how to use social networking tools to help do career exploration? Idea: A high school class partners with workforce development to teach adults how to use Facebook, Twitter, and text messaging to harness the power of networks to explore career options and find work. Example: A Southern California community is organizing events to bring job seekers together to teach them skills to use social networking tools. Job seekers are beginning to help each other. According to one participant, "With people saying, 'Hey, I found this job; I'm not a good fit. Would you like this position? ' They are able to communicate this information immediately with these new tools. Tools like Twitter and Linked in are a great way to build an online network of contacts. Another participated noted, "If I get other eyes to look for you maybe you'll find a job faster than if you just look for yourself. " - CNN, March 23, 2009
Each re-engagement network has a different purpose Network Purpose Strategy redesign network Help company execute on new or existing strategies Assessment and guidance network Help laid-off or at risk employees assess their skills and career options; introduce the re-employment system Direct re-employment network Help laid-off workers find employment in a closely related business Growth cluster network Prepare individuals for new opportunities in a growing cluster Skunk works network Help individuals launch a growth oriented business Self-employment network Help individuals with self-employment or a lifestyle business Career ladder network Help an individual move up from a lower skill, lower paying job Career exploration network Help an individual explore career and training options
Each re-engagement network has a different set of economic development partners Network Partners Strategy redesign network Economic development organization (EDO) and business retention specialists Assessment and guidance network Economic development organization (EDO) and economic analysis specialists Growth cluster network Economic development organization (EDO) and cluster coordinators Skunk works network Entrepreneurial support organizations, angel networks, entrepreneur networks Self-employment network Small business development organizations, entrepreneur networks Career ladder network Economic development organization (EDO) and economic analysis specialists Career exploration network Economic development organization (EDO) and economic analysis specialists
Your role is to align, link and leverage resources by building these networks Workforce Economic Development Universities Community College Industry Social Services You develop these networks by managing a continuous process of Strategic Doing
What does success look like? No Single Big Strategy Many Modest Strategies Swarm Innovation
Pick a network to design Direct re-employment network Self-employment network Strategy redesign network Growth cluster network Career ladder network Assessment and guidance network Skunk works network Career exploration network
Exercise 1: Define a purpose (10 minutes) What type of network are you designing? Circle one to the right Strategy redesign network Direct re-employment network Growth cluster network Skunk works network Self-employment network Career ladder network Career exploration network What is the purpose of your network? What are the outcomes you are trying to achieve? Write a clear statement of purpose in the space below
Exercise 2: Identify core network partners Identify three key partners who would be willing and able to deliver on your solutions? Partner 1: Partner 2: Partner 3: Thoughts on useful partners:
Exercise 3: Define an agenda for your meeting Develop an agenda for your initial meeting with core partners. Use the Strategic Doing Cycle to guide your thinking. Think through how you will guide the discussion to focus on four components. How will you design an engaging experience for your core team? Agenda Component 1: Asset Mapping: What could we do together? Agenda Component 2: Strategy: What should we do together? Agenda Component 3: Action Planning: What will we do together? Agenda Component 4: Process mapping: How will we learn together? What’s our plan for reconvening? Thoughts on useful partners:
The Strategic Doing cycle Guiding conversations to build networks What could we do together? How will we learn together? Use the Strategic Doing cycle to guide the development of an agenda for your initial network development meeting What should we do together? What will we do together?
Exercise 4: Decide on your next steps Action Step Thoughts on useful partners: Who? When?
We need to move our thinking from events and “programs” to processes…. Communities are moving toward civic process that focus on Strategic Doing
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