Accelerating Adoption of Sector Strategies A State Policy Development Assistance Project Funded by The Ford and C. S. Mott Foundations February 24, 2006 A project of the National Governors Association, the National Network of Sector Partners, and the Corporation for a Skilled Workforce Presentation to the National Association of State Workforce Board Chairs

Accelerating Adoption of Sector Strategies A State Policy Development Assistance Project A Major and Ongoing Issue for States Global and national trends have increased the challenge states face in creating strong economies. Many Governors highlight economic development, and the ability of their states’ workforces to meet the needs of growing, high- wage industries, as an important issue. –Source: 2004 State of the State Speeches Slide 2

Accelerating Adoption of Sector Strategies A State Policy Development Assistance Project What Governors Are Saying MA: “I recommend the creation of... an industry- driven workforce training program. –Governor Romney, 2005 PA: “We want to help Pennsylvania employers create new jobs and new opportunities for our hard- working men and women. Bringing employers together to form strategic partnerships will not only create new jobs, but also foster innovation and give Pennsylvania a competitive advantage in global markets.” –Governor Rendell, 2005 Slide 3

Accelerating Adoption of Sector Strategies A State Policy Development Assistance Project Michigan’s Strategy “Bring coherence to the public response to worker shortages, skill shortages, training mismatches, and other problems faced by industries of importance to the economy of a region.” Slide 4

MA, PA, & MI – States With Sector Strategies Sector strategies Foster innovation and competitive advantage in global markets Create new jobs and new opportunities for hard- working men and women Bring coherence to the public response to problems faced by industries of importance to the economy of a region California Illinois Kentucky Indiana Louisiana Massachusetts Maryland Michigan North Carolina Ohio Oklahoma Oregon Pennsylvania Washington Wisconsin Accelerating Adoption of Sector Strategies A State Policy Development Assistance Project 15+ States Using/Developing Sector Strategies Slide 5

Accelerating Adoption of Sector Strategies A State Policy Development Assistance Project Design Principles for Sector Strategies Encourage/provide incentives for regional partnerships Support regional collaboration across systems for industry analysis, planning, and implementation Target specific, critical industries Focus on occupations in which workers can achieve self-sufficiency, and occupations leading to them Allow flexibility so programs can meet industry and worker needs Establish accountability measures designed to ensure investments generate intended outcomes Slide 6

Accelerating Adoption of Sector Strategies A State Policy Development Assistance Project Sector Strategies Support Sector Initiatives Key Characteristics of Sector Initiatives: They focus intensively on a specific industry over a sustained time period, customizing solutions for multiple employers in a region They strengthen economic growth and industry competitiveness, benefit low income individuals by creating new pathways into the industry and up to good jobs and careers, and sustain/increase middle-class jobs They are led by a strategic partner with deep industry knowledge They promote systemic change that achieves benefits for the industry, workers, and the community Slide 7

Accelerating Adoption of Sector Strategies A State Policy Development Assistance Project Impact of Sector Initiatives Workers: Aspen Institute evaluation of sector initiatives showed: Median annual earning for those employed 39% higher than the previous year, and 381% higher than in the year before training 48% moved out of poverty based only on earnings 82% report that their job prospects are improved Employers: Third party evaluation of sector initiatives in Massachusetts showed: 41% reduction in turnover 19% reduction in rework 23% reduction in customer complaints 100% of companies reported that partnerships with other companies was valuable Slide 8

Introducing: “Accelerating State Adoption of Sector Strategies” Partnership of the National Governors Association, the National Network of Sector Partners, and the Corporation for a Skilled Workforce Supported by the Ford and C.S. Mott Foundations January 1, 2006 – December 31, 2007 Accelerating Adoption of Sector Strategies A State Policy Development Assistance Project Slide 9

“Accelerating State Adoption of Sector Strategies” (continued) Three Goals: 1.Accelerate the pace of states’ adoption of sector strategies 2.Improve the quality and effectiveness of sector strategies 3.Make sector strategies a systemic change initiative across the states Accelerating Adoption of Sector Strategies A State Policy Development Assistance Project Slide 10

“Accelerating State Adoption of Sector Strategies” (continued) A Three-Tier Strategy – the project will: 1.Operate a Learning Network for states with a year or more experience 2.Conduct a Policy Academy for states just getting started 3.Provide information through Dissemination tools and products for states considering sector strategies Accelerating Adoption of Sector Strategies A State Policy Development Assistance Project Slide 11

The project will assist state teams to develop sector strategies. Teams will be selected in Spring, For more information, contact: Jack Mills, National Network of Sector Partners National Economic Development and Law Center Martin Simon, Center for Best Practices National Governors Association Larry Good, Corporation for a Skilled Workforce Accelerating Adoption of Sector Strategies A State Policy Development Assistance Project Slide 12