1. Workforce Innovation in Regional Economic Development (WIRED) Slide 1 Workforce Innovations 2007 Implementing NCRC in the West Michigan WIRED Region

2. Workforce Innovation in Regional Economic Development (WIRED) Slide 2 Workforce Innovations 2007 Implementing NCRC in the West Michigan WIRED Region Phillip Rios, Project Manager - WIRED West Michigan Bill Guest, Innovation Champion, NCRC Pam Tate, President, CAEL Presentation Team

3. Workforce Innovation in Regional Economic Development (WIRED) Slide 3 Workforce Innovations 2007 Implementing NCRC in the West Michigan WIRED Region WIRED West Michigan, Phillip Rios NCRC, Bill Guest Business Model, Pam Tate Q&A, Team Today’s Agenda

4. Workforce Innovation in Regional Economic Development (WIRED) Slide 4 WIRED West Michigan One of the 13 Generation One WIRED Grants

5. Workforce Innovation in Regional Economic Development (WIRED) Slide 5 WIRED West Michigan: Who We Are Grantee –West Michigan Strategic Alliance Fiscal Agent –Grand Valley State University Region –Allegan County –Barry County –Ionia County –Kent County –Muskegon County –Newaygo County –Ottawa County

6. Workforce Innovation in Regional Economic Development (WIRED) Slide 6 THE WIRED WEST MICHIGAN STORY WIRED West Michigan supports the people, ideas and training necessary to attract and retain innovative employers and skilled jobs across our region. Our economy has undergone many changes, yet the key strengths of its workforce, a diversity of culture, talent and spirit, remain. WIRED West Michigan is focused on aggressively equipping the region’s industries with the jobs and talent and vision necessary to compete in a changing economy. WIRED West Michigan was designed to help communities transform themselves at every level – from the boardrooms to the classrooms – and create new thinking about how we live, learn, work and play. WIRED West Michigan: Who We Are

7. Workforce Innovation in Regional Economic Development (WIRED) Slide 7 WIRED Update: Motion and Progress FUNDAMENTAL BOTTOM LINE: Talent Attracts Economic Growth

8. Workforce Innovation in Regional Economic Development (WIRED) Slide 8 WIRED POLICY COUNCIL Oversight of the Innovation Process & Investment Decisions 2006 Innovation Portfolio SUSTAINABLE INNOVATIONS INNOVATION PROCESS 1. Concept Definition 2. Business Planning 3. Testing & Prototype 4. Production & Launch Managing the Innovation Portfolio WIRED Update: Motion and Progress Innovation Definition Testing & Prototype Production & Launch Business Planning Concepts, Ideas, Frameworks, Hypotheses Goals, Metrics, Strategies, Tactics, Budgets Micro-Level Macro-Level

9. Workforce Innovation in Regional Economic Development (WIRED) Slide 9 Workforce System Transformations Restructure key elements of our workforce development and education systems for emerging, existing and transitional workers. Market Intelligence Better understand the structure of regional employment clusters and the emerging skill requirements for the innovation economy. InnovationWORKS Catalyze, support and sustain strategies to support innovation in our regional economy. Enterprise Development Stimulate entrepreneurship and new business creation in key sectors of the innovation economy. Emerging Sector Skill Analysis Global Supply Chain Analysis Knowledge Workers & Economic Development Innovation WORKS Commercialization Infrastructure Innovation Curriculum Innovation WORKS Design Council Global School & Accelerated Engineering Health Care RSA Manufacturing Skill Development Coop NCRC/WorkKeys & Work Based Learning Regional Tri-Sector Workforce Development Initiative (TEAM) Entrepreneurial League System® Innovation Categories WIRED West Michigan: Motion and Progress Planning complete, policy council review pending Innovation complete, report submitted Phase II implementation

10. Workforce Innovation in Regional Economic Development (WIRED) Slide 10 WIRED Update: Motion and Progress Key Innovation “Tipping Points” SCALABILITY SUSTAINABILITY REGIONAISM

11. Workforce Innovation in Regional Economic Development (WIRED) Slide 11 WIRED West Michigan: What’s Innovative about NCRC? Innovation: Using Known Tools in New Ways: National Career Readiness Certificate (NCRC)/WorkKeys WIRED West Michigan NCRC innovation aims to secure regional employers cooperation in using the NCRC as part of their organizations employee support system. Bottom Line: “Employer Focused” A Pull not Push Approach

12. Workforce Innovation in Regional Economic Development (WIRED) Slide 12 WIRED West Michigan: What’s Innovative about NCRC? Innovation: Using Known Tools in New Ways: National Career Readiness Certificate (NCRC)/WorkKeys WIRED West Michigan NCRC innovation aims to secure regional employers cooperation in using the NCRC as part of their organizations employee support system. Bottom Line: “Employer Focused” A Pull not Push Approach

13. Workforce Innovation in Regional Economic Development (WIRED) Slide 13 West Michigan Strategic Alliance Workforce Innovation in Regional Economic Development (WIRED) Initiative Funded by the Employment and Training Administration of the U.S. Department of Labor Greg Northrup, President, West Michigan Strategic Alliance www.wm-alliance.org, 616.356.6060 Phil Rios, Project Manager, WIRED West Michigan, www.wiredwestmi.org, 616.331.6968 Career Readiness Certificate (CRC) Presentation, Revised: July 7, 2007 Bill Guest, WorkKeys Innovation Champion, 616.430.0828, bill.guest@metricsreporting.com Rachael Jungblut, WorkKeys Program Manager, GRCC, 616.234.3623, rjungblu@grcc.edu Liz Stegman, Program Administrator, (HELP Desk!), 616.234.3471, liz.stegman@metricsreporting.com The Career Readiness Certificate (Powered by WorkKeys®)

14. Workforce Innovation in Regional Economic Development (WIRED) Slide 14 West Michigan

15. Workforce Innovation in Regional Economic Development (WIRED) Slide 15 WMSA Region Allegan Barry Ionia Kent Muskegon Newaygo Ottawa

16. Workforce Innovation in Regional Economic Development (WIRED) Slide 16 M-MIT Region Bay Clinton Eaton Genesee Huron Ingham Lapeer Livingston Midland Saginaw Sanilac Shiawasee Tuscola

17. Workforce Innovation in Regional Economic Development (WIRED) Slide 17 Workforce Innovations Lab Operating Design INNOVATION PROCESS 1. Concept Definition 2. Business Planning 3. Testing & Prototype 4. Production & Launch Managing the Innovation Portfolio STRATEGIC ADVISORY TEAM Oversight of the Innovation Process WMSA Stage-gate decisions Investment decisions Champion selection Innovation Champions Development of the innovation through the stages Hosting of the prototype Development of implementation resources Regional Engagement & Outreach Learning from the process Contributing to development Application environments Innovation Portfolio Innovation Institute: Innovation Curriculum IP Commercialization Innovation Forum Industrial Design Council WorkKeys and Work-Based Learning Global School Accelerated Engineering Manufacturing Skills Standards Manufacturing Skills Coop Regional SOURCE Health Care RSA West Michigan Entrepreneurial League System SUSTAINABLE INNOVATIONS Market Intelligence Emerging Sector Analysis Global Supply Chain Analysis Knowledge Workers

18. Workforce Innovation in Regional Economic Development (WIRED) Slide 18 What is our common language? Employers say “New hires need more math.” Educators ask “How much more?” Employers say “We need better reading skills.” Educators ask “How much better?” We all know these can be endless discussions. This communication problem extends throughout the entire Workforce Development System.

19. Workforce Innovation in Regional Economic Development (WIRED) Slide 19 Why a Career Readiness Certificate? We need a trusted common language. What do we mean by Qualified Candidates? New hires Promotions and internal moves Career development programs Occupational training Job specific training How do we measure qualifications?

20. Workforce Innovation in Regional Economic Development (WIRED) Slide 20 Do you have Qualified Candidates? How successful are training classes? Are all employees prepared for audits? Are team leaders helping weak employees too much? Are data entry errors hurting the information system? Having trouble with hiring, promoting, or training? Again, how do we measure qualifications? Why a Career Readiness Certificate?

21. Workforce Innovation in Regional Economic Development (WIRED) Slide 21 WorkKeys is a measurement tool. WorkKeys quantifies skills in the following categories: Applied Mathematics Applied Technology Business Writing Listening Locating Information Observation Reading for Information Teamwork Writing

22. Workforce Innovation in Regional Economic Development (WIRED) Slide 22 The WorkKeys Measurement System Assess job requirements - Assess individual skill levels - Train to eliminate gaps

23. Workforce Innovation in Regional Economic Development (WIRED) Slide 23 Career Readiness Certificate in Context Reading for Information Job Specific Training Occupational Training Applied Mathematics Locating Information WorkKeys Measures Foundational Skills

24. Workforce Innovation in Regional Economic Development (WIRED) Slide 24 The Career Readiness Certificate (CRC) and Jobs WorkKeys Skill Levels: Bronze Silver Gold Reading for Information3 45 Applied Mathematics3 45 Locating Information 3 45 Job Readiness* 30% 65% 90% * Job Readiness indicates the % of jobs in the occupational database that holders of these certificates are qualified to apply for. The CRC is a credential.

25. Workforce Innovation in Regional Economic Development (WIRED) Slide 25 From: www.careerreadinesscertificate.com, revised June 2006. CRC Deployed:CRC in Progress:Interested in CRC: Kentucky Indiana Virginia Louisiana Missouri North Carolina Oklahoma Alabama Tennessee New Mexico North Dakota South Carolina Wyoming District of Columbia West Virginia Iowa Nevada Washington Kansas Ohio Colorado Arizona Georgia Michigan California Delaware Maryland Rhode Island Illinois Montana Minnesota Oregon Idaho Mississippi Florida New York Alaska Nebraska Arkansas Vermont Utah New Jersey Pennsylvania 10 States 14 States 19 States

26. Workforce Innovation in Regional Economic Development (WIRED) Slide 26 What Every Worker Must Know Reading for Information Applied Mathematics Locating Information MVC

27. Workforce Innovation in Regional Economic Development (WIRED) Slide 27 A Common Skills Currency

28. Workforce Innovation in Regional Economic Development (WIRED) Slide 28 How do we get every employer to use the same target?

29. Workforce Innovation in Regional Economic Development (WIRED) Slide 29 Career Readiness Certificate Project Schedule CONCEPT DEFINITION Concept development of the Career Readiness Certificate target and the focus on employer demand. BUSINESS PLANNING National Best Practices identified and implemented. Prototype planned, organized and launched. Performance metrics defined. TESTING AND PROTOTYPE County teams work with selected employers to test the effectiveness of WorkKeys and the CRC to improve the Workforce. Plan WBL. PRODUCTION AND LAUNCH Broad based launch of WorkKeys and the CRC in West Michigan. Launch of Work- based Learning. 3/1/065/1/0610/1/066/30/071/31/09 Local Success Stories

30. Workforce Innovation in Regional Economic Development (WIRED) Slide 30 Career Readiness Certificate Employer Options Three Levels of Employer Engagement: Entry Level Engagement: Require CRCs based on: ACT Occupational Database (WorkKeys Consultant can help), or O*NET Job Zone (with help from your MichiganWorks! office): Bronze for O*NET Zone 1 Jobs Silver for O*NET Zone 2 Jobs Gold for O*NET Zone 3 Jobs (and above) Active Engagement: Require CRCs for hiring and advancement based on job assessment tools such as: Profile, SkillMap, or Estimator. Power User: Require CRCs for key jobs and use WorkKeys as an integral human resources and employee training and development tool.

31. Workforce Innovation in Regional Economic Development (WIRED) Slide 31 How do we improve our workforce? Assess foundational skills Use WIN software Use KeyTrain software Provide learning coaches for support Use practice tests in WIN and KeyTrain Issue Career Readiness Certificates

32. Workforce Innovation in Regional Economic Development (WIRED) Slide 32 Prototype Teams County Teams: Allegan Barry Ionia Kent Muskegon Newaygo Ottawa Special Teams: Healthcare RSA and HFC Ex-offender Re-entry The SOURCE Special Needs Population GED Inner-city

33. Workforce Innovation in Regional Economic Development (WIRED) Slide 33 Career Readiness Certificate Steps Reading for Information Job Specific Training Occupational Training Applied Mathematics Locating Information The Learner’s Perspective Steps to Success Goals

34. Workforce Innovation in Regional Economic Development (WIRED) Slide 34 Michigan Merit Examination (MME) Summary Table * The new Michigan Merit Examination will be utilized in all Michigan Schools beginning the Spring of 2007

35. Workforce Innovation in Regional Economic Development (WIRED) Slide 35 Master Degree Bachelor Degree Associate Degree Some College High School Diploma Some High School NOTES: Unemployment and earnings for workers 25 and older, by educational attainment; earnings for full-time wage and salary workers Source: Bureau of Labor Statistics Education and Training Pay $1,064 $396 $900 $554 $622 $672 2.9% 3.3% 4.0% 5.2% 5.5% 8.8% Unemployment Rate in 2003 Median Weekly Earnings in 2003

36. Workforce Innovation in Regional Economic Development (WIRED) Slide 36 Notes: $23,000 at “9” and $50,000 at “15” results in a gain of $4500 per point. Data is based on RI, AM, and LI scores from the ACT Occupational Database (with 5 or more Profiles) and Median income data from the O*NET. Example: 3, 3, 3 = 9; 5, 5, 5 = 15; etc. DRAFT Combined Score Qty. of Profiles

37. Workforce Innovation in Regional Economic Development (WIRED) Slide 37 Example Occupations for CRC Holders BRONZEBRONZE SILVERSILVER GOLDGOLD

38. Workforce Innovation in Regional Economic Development (WIRED) Slide 38 Emerging Workforce (K-12 and Colleges) Transitional Workforce (MWAs and Agencies) Incumbent Workforce (Employers) Employers (Chambers & EAs) DemandSupply

39. Workforce Innovation in Regional Economic Development (WIRED) Slide 39 Employer Demand – Market Channel Partners 1.High Schools (K-12 System) 2.Colleges and Universities 3.Michigan Works Agencies (MWAs) 4.Private Employment Agencies 5.Chambers of Commerce 6.Economic Development Agencies 7.Employers Associations 8.Literacy and Adult Education Organizations 9.State Agencies and Partners 10.National Agencies and Partners

40. Workforce Innovation in Regional Economic Development (WIRED) Slide 40 Employer Letter of Commitment Basic Commitments: □ We will ask job applicants “Do you have a Career Readiness Certificate?” □ We will recognize the Career Readiness Certificate in hiring, promotion, and employee development practices for selected positions. □ We give WIRED West Michigan permission to use our name in public awareness efforts to promote the Career Readiness Certificate. Extraordinary commitments: □ We will include Career Readiness Certificate preparation programs in our tuition refund plan and/or provide assistance and an incentive for our employees. □ We will provide special treatment for individuals with Career Readiness Certificates, such as, taking five minutes to warmly greet them when they fill out an application. □ We will provide financial support for a promotion campaign, such as, a billboard or advertisement. □ We will promote this program with our supply chain and recognize those suppliers that make this commitment to employee development. □ We will test and certify ______ % employees. We employ _______ employees. □ We will track and report data for purposes of statistical summaries for our region. □ We will join and utilize the ACT Job and Talent Bank.

41. Workforce Innovation in Regional Economic Development (WIRED) Slide 41 West Michigan Long-term Goals (2007-2012) 1. Gain and document 500 employer commitments with a signed Letter of Commitment (LOC) by December 2008. 2. Gain commitment of all high schools in West Michigan to add Locating Information to the MME and offer ACT National Career Readiness Certificates to all students. This is 10,000 to 15,000 certificates per year. 3. Gain commitment of our six regional Michigan Works! agencies to utilize WorkKeys and the Career Readiness Certificate as a means of defining “qualified applicants” for all job placements in West Michigan. 4. Issue 50,000 Career Readiness Certificates to incumbent and displaced workers by 2012. 5. Participate in and support the state-wide movement led by the Michigan Career Readiness Certificate Advocates (MiCRCA).

42. Workforce Innovation in Regional Economic Development (WIRED) Slide 42 Questions & Discussion www.michigancrc.org “We” vs. “They”

43. Workforce Innovation in Regional Economic Development (WIRED) Slide 43 Conventional View K-12 Education College or Apprenticeship Work The Reality for Most Students K-10 Education College or Apprenticeship Work 11-12

44. Workforce Innovation in Regional Economic Development (WIRED) Slide 44 Aligning K-12 education to college and careers. K-12 Education College or Apprenticeship Work WK 11-12 ACT

45. Workforce Innovation in Regional Economic Development (WIRED) Slide 45 Morningstar Foods, LLC division of Dean Foods, Inc. Dallas, TX Robin L. Fiddes, SPHR Senior Corporate Human Resource Manager Appendix A: Case Study from the WorkKeys National Conference May 2006

46. Workforce Innovation in Regional Economic Development (WIRED) Slide 46 A snapshot of Morningstar Foods’ use of WorkKeys™ In 2003 Morningstar’s Mt. Crawford, VA facility began the use of WorkKeys™ as an internal and external selection tool. Once the program was initiated, our first examination of WorkKeys was a comparison of incumbent worker’s and external candidate’s pass rates for the first year of use. (2003 – 2004)  We found that our incumbent workers passed at a rate of 61%, while our external candidates passed at a rate of 65%. In addition to studying pass rates, we analyzed retention rates between tested and non-tested new hires. 85% 50%  In the tested new hire group, their first year of employment showed an 85% retention vs. the non-tested new hires with a 50% retention rate.

47. Workforce Innovation in Regional Economic Development (WIRED) Slide 47 35% 8.5% 50%.By 2005, the Mt. Crawford facility had experienced a 35% reduction in turnover, an 8.5% reduction in absenteeism, and a reduction in on-the-job training time of up to 50%. (2003 vs. 2004) In February of 2005, fifty-two (52) of our employees were awarded Career Readiness Certificates in a ceremony held with our community college partner and the State of Virginia. In 2005, 172 additional CRC’s were awarded to our current employees as well as to prospective employees. In the hiring process, a candidate that brings a CRC to the table will reduce our testing cost by 64%.  In 2005, that would have accounted for a total savings of $10,860.00.

48. Workforce Innovation in Regional Economic Development (WIRED) Slide 48 What has WorkKeys brought to Morningstar Foods? When hiring an individual that has passed the requisite WorkKeys tests, we know that they are going to have the necessary aptitudes for our positions.  The on-the-job training costs for these new hires has been reduced by 50% (or better, depending on position).  Our OJT cost was reduced to between $1,280.00 - $2,560.00 per employee.  During 2005, that savings would have equated to between $128,000.00 to $256,000.00 in strictly regular, hourly wages required to pay another employee to handle the OJT for our new hire. This does not count production efficiencies gained by returning the trainer to producing product.

49. Workforce Innovation in Regional Economic Development (WIRED) Slide 49 Morningstar Foods’ future plans Implementation of WorkKeys™ testing, as a selection tool, in our other facilities across the nation. 2006Sulphur Springs, TX Newington, CT Murray, KY Frederick, MD TBDfacilities in AL, CA, MN, NY, WI With the growth our company is facing, to have a credentialing tool available in our locations makes the hiring process streamlined -- with a known, immediate return on investment to the business.

50. Workforce Innovation in Regional Economic Development (WIRED) Slide 50 Appendix B: WMSA WIRED WorkKeys Turnover Reduction Examples

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55. Workforce Innovation in Regional Economic Development (WIRED) Slide 55 Appendix C: WMSA WIRED WorkKeys Increased ROI Examples

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60. Workforce Innovation in Regional Economic Development (WIRED) Slide 60 Appendix D: WMSA WIRED WorkKeys Improved Productivity Examples

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65. Workforce Innovation in Regional Economic Development (WIRED) Slide 65 Appendix E: WMSA WIRED WorkKeys Miscellaneous Slides

66. Workforce Innovation in Regional Economic Development (WIRED) Slide 66 WKs Level 4 (Silver) Literacy WKs Level 5 (Gold) Source: Dept. of Labor, Education and Training Administration, Common Measures Policy (17-05), February 17, 2006

67. Workforce Innovation in Regional Economic Development (WIRED) Slide 67 Source: Dept. of Labor, Education and Training Administration, Common Measures Policy (17-05), February 17, 2006 Level 5 – Gold Basic Reading and Writing Numeracy Skills Functional and Workplace Skills Level 4 – Silver Basic Reading and Writing Numeracy Skills Functional and Workplace Skills

68. Workforce Innovation in Regional Economic Development (WIRED) Slide 68 Career Readiness Certificate & WorkKeys Partners Career Readiness Certificate Michigan: www.michigancrc.org ACT National: www.careerreadinesscertificate.org CRC Consortium: www.crcconsortium.org ACT WorkKeys, www.act.org/workkeys Steve Anderson, 563.391.3742, steve.anderson@act.org John Nelson, 319.321.9705, john.nelson@act.org KeyTrain, www.keytrain.com Rick Harris, 888.480.4883, rick@keytrain.com Justin Saylor, 877.842.6205, justin.saylor@keytrain.com The Council for Adult & Experiential Learning (CAEL), www.cael.org Pam Tate, President, 312.499.2680, ptate@cael.org Joel Simon, Consultant, 312.499.2678, jsimon@cael.org

69. Workforce Innovation in Regional Economic Development (WIRED) Slide 69 Elements of West Michigan NCRC/WorkKeys Model Focus on building employer demand Collaboration with public workforce system, high schools, community colleges, economic development agencies and chambers Development of sustainable business model, including potential new funding sources after WIRED –Philanthropic Foundations –State support –Revenue from Educational Content Providers –Revenue from NCRCs Earned –Consulting Services

70. Workforce Innovation in Regional Economic Development (WIRED) Slide 70 Elements of West Michigan NCRC/WorkKeys Model (cont.) Hosted by Grand Rapids Community College Advise and consultation on business model from CAEL (Council for Adult and Experiential Learning) Building collaborative relationship with ACT and KeyTrain

71. Workforce Innovation in Regional Economic Development (WIRED) Slide 71 Replication Emerging or Established NCRC Initiatives in WIRED Regions

72. Workforce Innovation in Regional Economic Development (WIRED) Slide 72 Seeding Replication: What is Needed? Committed regional and state leadership Clear and targeted employer communication and a toolkit for implementation Startup funding –WIRED, Foundations, Workforce Development agency, Economic Development agency Key Partners –Employer champions, Workforce Systems (state or regional), Educational delivery infrastructure, ACT, KeyTrain Leveraging promising practices –From the WIRED world and elsewhere