1. Workforce Development Benchmark Project Minnesota State Colleges and Universities Presented by Kathy Yeager Contract Training Edge 913-593-5347kyeager@ctedge.net

2. Benchmark Study Best practices in workforce development and contract training in Minnesota Best practices in workforce development and contract training in Minnesota Surveyed 32 Colleges and Universities Surveyed 32 Colleges and Universities Response rate was 62.5% with 20 completing the survey Response rate was 62.5% with 20 completing the survey Compare the results to the national Benchmark Study Compare the results to the national Benchmark Study Results are baseline for processes and best practices Results are baseline for processes and best practices

3. Who Participated? Alexandria Technical College Alexandria Technical College Central Lakes College Central Lakes College Century College, CE & CT Century College, CE & CT Inver Hills Inver Hills Lake Superior College Lake Superior College Mesabi Range Mesabi Range Minneapolis Community and Technical College Minneapolis Community and Technical College MN State College-SE Technical MN State College-SE Technical MN State Comm. & Tech MN State Comm. & Tech MN State U Moorhead MN State U Moorhead North Hennepin CC Northland Community & Technical College Pine Technical College Rainy River CC Ridgewater College South Central College St. Cloud Technical College St. Cloud State University Vermilion CC Winona State University

4. The Benchmark Process Similar survey of National Workforce Development Benchmark Project was distributed via Survey Monkey Similar survey of National Workforce Development Benchmark Project was distributed via Survey Monkey Responses tallied and tables were created Responses tallied and tables were created Analysis and comparison to national study began Analysis and comparison to national study began Result: Printed Benchmark Report and Conference Presentation of findings Result: Printed Benchmark Report and Conference Presentation of findings

5. Major Findings - Sales Sales calls per week – 40% conduct 3-5 and 35% conduct 1-2 per week Sales calls per week – 40% conduct 3-5 and 35% conduct 1-2 per week Nationally, 36.8% conduct 3-5 and 26.3% conduct 6-8 sales calls per week Nationally, 36.8% conduct 3-5 and 26.3% conduct 6-8 sales calls per week Proactive sales calls per week – 5 colleges are proactive on less than 10% of sales calls, 5 colleges reported 25%-49% of sales calls, and 5 colleges reported 50%-74% of sales calls. Proactive sales calls per week – 5 colleges are proactive on less than 10% of sales calls, 5 colleges reported 25%-49% of sales calls, and 5 colleges reported 50%-74% of sales calls. Nationally, 32% conduct 50%-74% proactively Nationally, 32% conduct 50%-74% proactively Many colleges still reactive in sales calls Many colleges still reactive in sales calls

6. Major Findings - Sales Sales call targets Sales call targets Human Resources – 85% -- nationally 68% Human Resources – 85% -- nationally 68% Training Director – 75% -- nationally 89% Training Director – 75% -- nationally 89% CEO – 65% -- nationally 63% CEO – 65% -- nationally 63% Nationally, Solution Selling targeted the CEO Nationally, Solution Selling targeted the CEO Greater buy in Greater buy in Larger contracts Larger contracts Top decision-maker Top decision-maker

7. How Colleges Got Leads Referrals – 90% - Nationally 94.7% Referrals – 90% - Nationally 94.7% Response to marketing piece – 80% - Nationally 60% Response to marketing piece – 80% - Nationally 60% Nationally other lead generators Nationally other lead generators Chamber lists – 57% Chamber lists – 57% College Representative gives the lead – 47% College Representative gives the lead – 47% Grant lead – 42% Grant lead – 42% Newspaper – 31% Newspaper – 31% Purchased list – 21% Purchased list – 21%

8. Vertical Markets and Close Time Top vertical markets Healthcare – 90% -- 66% Manufacturing – 80% -- 66% Government – 50% -- 50% Length of time to close a sale 3-4 weeks 35% 1-2 weeks 30% Nationally – 5-8 weeks 42% Nationally – 3-4 weeks 37%

9. Fulfillment Definition: Sales person finds the lead and when it closes, the lead is passed off to a fulfillment team or person for execution. The sales person may check back in for additional sales later. Definition: Sales person finds the lead and when it closes, the lead is passed off to a fulfillment team or person for execution. The sales person may check back in for additional sales later. 80% of sales people in MN complete the whole process from approach to delivery. Nationally, 52% of colleges do not complete the whole process, and use some form of fulfillment assistance.

10. Fulfillment Team Pros Pros Frees the sales staff to stay in the field to make more sales Frees the sales staff to stay in the field to make more sales Keeps all the paperwork and date changing away from the sales staff Keeps all the paperwork and date changing away from the sales staff Cons Things may fall through the cracks with the pass- off to the fulfillment team. The customer deals with several people instead of just one point of contact

11. Additional Survey Comments on Fulfillment We pass off at the point when training occurs We pass off at the point when training occurs We do have a logistics person who sets up rooms, contracts, materials, etc. We do have a logistics person who sets up rooms, contracts, materials, etc. We don’t have a sales position. Our customized training reps and department directors handle the sales call and then turn it over to a trainer We don’t have a sales position. Our customized training reps and department directors handle the sales call and then turn it over to a trainer We handle through contract completion and instructor salary payments. We handle through contract completion and instructor salary payments.

12. Average Contract Size MN average contract size is $1,000-$3,999-50%; followed by $4,000-$7,999 – 30% MN average contract size is $1,000-$3,999-50%; followed by $4,000-$7,999 – 30% Nationally, 52% reported their average contract sale to be $4,000 - $7,999. Nationally, 52% reported their average contract sale to be $4,000 - $7,999. This indicates colleges are selling individual classes to small groups instead of bundling multiple classes for a long-term contract (one or more years) This indicates colleges are selling individual classes to small groups instead of bundling multiple classes for a long-term contract (one or more years) Note: MN has a faster close rate (3-4 weeks), but closes smaller contracts ($1,000-$3,999) Note: MN has a faster close rate (3-4 weeks), but closes smaller contracts ($1,000-$3,999)

13. Contract Training Top Revenue Generator for the Area When asked which three services generate the most revenue, contract training was 100%, followed by public enrollment, 80% and on-line classes, 35% When asked which three services generate the most revenue, contract training was 100%, followed by public enrollment, 80% and on-line classes, 35% Nationally, contract training was 100%, public enrollment classes were 52% and on-line courses came in at 21% Nationally, contract training was 100%, public enrollment classes were 52% and on-line courses came in at 21% Minnesota and the national survey had the same responses to this question on the survey Minnesota and the national survey had the same responses to this question on the survey

14. Net Revenue Goal for CT Definition of Net Revenue – Revenue left after expenses are taken out Definition of Net Revenue – Revenue left after expenses are taken out Net revenue goal for MN was $100,000 or more – 40%, followed by $75,000 - $99,999 – 20% Net revenue goal for MN was $100,000 or more – 40%, followed by $75,000 - $99,999 – 20% The college expected this annual net revenue from the Center. The college expected this annual net revenue from the Center. Nationally, the response was the same—61.1% had expectations of $100,000 or more annual net revenue Nationally, the response was the same—61.1% had expectations of $100,000 or more annual net revenue

15. % Revenue Generated by CT MN institutions had 35% report that 25%-49% of revenue was generated by contract training. MN institutions had 35% report that 25%-49% of revenue was generated by contract training. MN also reported 30% for 50%-74% came from contract training. MN also reported 30% for 50%-74% came from contract training. Nationally, 42% indicated 50%-74% of total revenue was generated from contract training Nationally, 42% indicated 50%-74% of total revenue was generated from contract training Note: MN collects less money from contract training than national institutions Note: MN collects less money from contract training than national institutions

16. % Revenue from Open Enroll MN reported that 0%-24% was generated by open enrollment classes (45%) MN reported that 0%-24% was generated by open enrollment classes (45%) Nationally, 52.6% indicated the smallest portion (0%-24%) came from open enrollment classes Nationally, 52.6% indicated the smallest portion (0%-24%) came from open enrollment classes Note: Typically open enrollment classes are not a large revenue generator for the college Note: Typically open enrollment classes are not a large revenue generator for the college

17. Top Products Minnesota Leadership – 65% Microsoft – 60% Certificate Programs – 55% Lean Manufacturing – 50% Customer Service – 35% IT Courses – 35% Nationwide Leadership – 68.4% Microsoft – 52.6% Customer Service – 42.1% IT Courses – 31.6% Lean Manufacturing – 31.6%

18. Top Soft Skills and Computer Classes Most demanded soft skills classes Most demanded soft skills classes Change – 70%/57% Change – 70%/57% Conflict – 70%/57% Conflict – 70%/57% Presentation Skills – 0%/52.6% Presentation Skills – 0%/52.6% Coaching – 0%/47.4% Coaching – 0%/47.4% Performance Reviews – 0%/47.4% Performance Reviews – 0%/47.4% Time Management – 55%/0% Time Management – 55%/0% Most demanded computer classes Excel – 75%/89.5% Word – 65%/63.2% Access – 0%/52.6% PowerPoint – 50%/0%

19. Statistics Top customers came from Healthcare and Manufacturing. This was true for MN and nationally Top customers came from Healthcare and Manufacturing. This was true for MN and nationally In MN, 75% reported both the Center and external consultants own the curriculum. Nationally, 72.2% of institutions own In MN, 75% reported both the Center and external consultants own the curriculum. Nationally, 72.2% of institutions own Referrals was the #1 lead generator both for MN and institutions nationally Referrals was the #1 lead generator both for MN and institutions nationally

20. Instructor Statistics Hourly rate for soft skills instructor was $50-$74 per hour – 40%; nationally 42.1% Hourly rate for soft skills instructor was $50-$74 per hour – 40%; nationally 42.1% Computer instructors were paid $25-$49 per hour – 35%; nationally, $50-$75 per hour (52.6%) Computer instructors were paid $25-$49 per hour – 35%; nationally, $50-$75 per hour (52.6%) 80% do not use full-time trainers; nationally, 84% 80% do not use full-time trainers; nationally, 84% If full-time trainers were used, they were paid $25-$50 per hour – 66% If full-time trainers were used, they were paid $25-$50 per hour – 66%

21. Measuring Impact MN Institutions responded with 55% not measuring return on investment, and 45% who were measuring. MN Institutions responded with 55% not measuring return on investment, and 45% who were measuring. Nationally, 68% of institutions were measuring Nationally, 68% of institutions were measuring 94% of MN Colleges used Level 1 evaluations 94% of MN Colleges used Level 1 evaluations MN Institutions did administer a pre- and post- test before and after training. Same results nationally. MN Institutions did administer a pre- and post- test before and after training. Same results nationally.

22. Selling Credit 80% of the colleges sold credit contract training. Nationally the response was 68.4% 80% of the colleges sold credit contract training. Nationally the response was 68.4% The dollar volume for CT for credit per year was $30,000 or more. Same response nationally. The dollar volume for CT for credit per year was $30,000 or more. Same response nationally. Credit courses sold as CT included classes for Manufacturing, Healthcare, Business and Computer Information Services. The top classes nationally were Business and Computer Information Services. Credit courses sold as CT included classes for Manufacturing, Healthcare, Business and Computer Information Services. The top classes nationally were Business and Computer Information Services.

23. Marketing Marketing targets the HR and Training Director Marketing targets the HR and Training Director Over 50% don’t/can’t track marketing Over 50% don’t/can’t track marketing Colleges use direct mail, Colleges use direct mail, e-mail blasts, radio, trade shows, chamber events, website, chotzkeys and TV Recommend looking at social media for marketing Recommend looking at social media for marketing

24. Revenue, Profit, Retained Revenue Cost Recovery and other terms No uniformity of understanding for financial terms across the nation No uniformity of understanding for financial terms across the nation Most college administrators have expectations of “making a profit” for the workforce development area Most college administrators have expectations of “making a profit” for the workforce development area Majority of sales departments had annual retained revenue goals of $100,000 or more Majority of sales departments had annual retained revenue goals of $100,000 or more Pricing becomes difficult when trying to serve the community and still make a profit Pricing becomes difficult when trying to serve the community and still make a profit Colleges surveyed sold between $1M to $10M in their workforce development area Colleges surveyed sold between $1M to $10M in their workforce development area

25. Revenue Projections This Fiscal Year $500,000 - $1Million (40%) Less than $500,000 (35%) Nationally, in 2006, respondents indicated 52.6% would experience $1 million - $2 million of sales success for the team that fiscal year. In Three Years $500,000 - $1 Million (40%) $1 Million - $2 Million (30%) Nationally, in 2006, respondents had a vision for $1 Million - $2 Million (44.4%) and up to $7 Million or more (24%).

26. If Resources Weren’t An Issue.. Minnesota Increase marketing (staff and materials) 10 out of 20 Improve processes 5 out of 20 Develop specialty areas Develop on-line training More sales and support staff Customer management system Nationwide More sales people (68.4%) Better leads (52.6%) Better marketing

27. What Keeps You From “Running It Like a Business”? Faculty contracts Faculty contracts State policies and procedures State policies and procedures MnSCU accounting, registration system MnSCU accounting, registration system Lack of resources (staff, center, infrastructure) Lack of resources (staff, center, infrastructure) Better business operating tools Better business operating tools More and timelier marketing More and timelier marketing Lack of specific institution support Lack of specific institution support Disagree: Do run it “like a business” Disagree: Do run it “like a business”

28. What Holds Workforce Development Areas Back? Internal systems Internal systems Inflexibility of college system Inflexibility of college system Working in a academic atmosphere Working in a academic atmosphere Lack of top level support Lack of top level support Processes and policies Processes and policies Politics Politics

29. Innovative Things Done to Create More Business Partnered with other sister institutions to sell programs that are already developed Partnered with other sister institutions to sell programs that are already developed Interactive online training Interactive online training MJSP grants have helped to develop capacity MJSP grants have helped to develop capacity Collaborated with academic departments to provide degree and licensure programs off-campus Collaborated with academic departments to provide degree and licensure programs off-campus Work with Master(s) programs to provide graduate level students to work on projects We received a $1.9M advanced manufacturing grant Development of a strategic college-wide business outreach plan with college administration, academic areas and college foundation

30. More Innovation Mobile medical simulation lab Mobile medical simulation lab Build in-house capacity to produce video training and high-end online training Build in-house capacity to produce video training and high-end online training Listens to industry needs and develop programs Listens to industry needs and develop programs Use of online open enrollment classes Use of online open enrollment classes We are breaking down the program silos and having a more integrated approach to selling We are breaking down the program silos and having a more integrated approach to selling Conferencing and Institutes Conferencing and Institutes

31. Why Companies Use Your Center vs. Another Vendor Minnesota Quality of instructors (95%) Quality of programs (90%) Cost (75%) Convenience (70%) Nationwide Cost (89.5%) Quality of instructors (84.2%) Quality of programs (84.2%)

32. Other Key Findings Companies use the community college because of cost, quality of instructors and customized curriculum Companies use the community college because of cost, quality of instructors and customized curriculum Institutions wished their sales team had more staff and better leads Institutions wished their sales team had more staff and better leads Most colleges attempt to run the workforce development area like a business in an academic atmosphere. Few are successful. Most colleges attempt to run the workforce development area like a business in an academic atmosphere. Few are successful.

33. “Run it Like a Business” Of those colleges successfully “running it like a business in an academic atmosphere”: Of those colleges successfully “running it like a business in an academic atmosphere”: Upper management full support Upper management full support Proper funding Proper funding Reporting structure to the President Reporting structure to the President Full board support Full board support CE billing system not tied to the college billing system CE billing system not tied to the college billing system No boundaries for sales calls No boundaries for sales calls Pay bonuses to sales staff Pay bonuses to sales staff Try to be entrepreneurial Try to be entrepreneurial

34. Do You “Run It Like A Business”?

35. Minnesota Best Practices Conduct 3-5 sales calls per week Conduct 3-5 sales calls per week Target viable vertical markets of Healthcare, Manufacturing and Government Target viable vertical markets of Healthcare, Manufacturing and Government Takes 3-4 weeks to close a sale. The national average was 5-8 weeks Takes 3-4 weeks to close a sale. The national average was 5-8 weeks Offers similar top products to national survey—Leadership, Microsoft, Lean Offers similar top products to national survey—Leadership, Microsoft, Lean Utilizes referrals to obtain leads Utilizes referrals to obtain leads

36. More Best Practices Offers pre- and post-assessments before and after the training Offers pre- and post-assessments before and after the training Sells credit contract training, and meets the national average of $30,000 Sells credit contract training, and meets the national average of $30,000 Can operate in multi-county locations Can operate in multi-county locations Organization state-wide of MnSCU Organization state-wide of MnSCU Personal development and state-wide training programs available for Colleges and Institutions Personal development and state-wide training programs available for Colleges and Institutions

37. National Best Practices for Sales Working in vertical markets Working in vertical markets Selling both credit and non-credit Selling both credit and non-credit Doing more consulting instead of selling classes Doing more consulting instead of selling classes Utilizing a fulfillment team after the sale Utilizing a fulfillment team after the sale Commission Plans Commission Plans Solution Selling Solution Selling

38. More Best Practices in Sales E-Newsletter sent monthly to targeted segments E-Newsletter sent monthly to targeted segments Pass lead to program developer Pass lead to program developer Get leads from the college president Get leads from the college president Sales staff comes from business background Sales staff comes from business background Flexibility of credit and non-credit for the customers Flexibility of credit and non-credit for the customers

39. Customer Service Best Practices Fast response time Fast response time Customer focused Customer focused “No” isn’t in vocabulary “No” isn’t in vocabulary Clearly communicate Clearly communicate Strive for high repeat ratio Strive for high repeat ratio Reward customers with luncheon, awards, or ball game Reward customers with luncheon, awards, or ball game

40. Potential Growth Areas for Minnesota Colleges and Univ. Increase number of proactive sales calls to customers. Increase number of proactive sales calls to customers. Approach higher level decision-makers in a company Approach higher level decision-makers in a company Increase the size of contracts sold Increase the size of contracts sold Sell more contract training Sell more contract training Perhaps raise the computer instructor payments Perhaps raise the computer instructor payments

41. Potential Growth Areas Consider relooking at the fulfillment process Consider relooking at the fulfillment process Look at eMarketing Look at eMarketing Establish and grow a marketing process Establish and grow a marketing process

42. Next Steps Position the Minnesota Colleges and Universities to be ready when the economy shifts upward. Position the Minnesota Colleges and Universities to be ready when the economy shifts upward. Be ready to meet the needs of companies receiving Stimulus Money Be ready to meet the needs of companies receiving Stimulus Money Examine the current marketing practices and investigate eMarketing and Social Media Examine the current marketing practices and investigate eMarketing and Social Media Continue to grow the sales staff with proper training, coaching and processes Continue to grow the sales staff with proper training, coaching and processes

43. Next Steps Be clear on college expectations for your area Be clear on college expectations for your area Set financial goals for the Workforce Development Area and for the Sales Staff Set financial goals for the Workforce Development Area and for the Sales Staff Measure Return On Investment (ROI) Measure Return On Investment (ROI) Determine how you are better and different from the competition, and use your Unique Selling Proposition daily Determine how you are better and different from the competition, and use your Unique Selling Proposition daily Have fun on the journey! Have fun on the journey!

44. For More Information Kathy Yeager Contract Training Edge 913-593-5347 kyeager@ctedge.net www.ctedge.net Specializing in: Solution Selling Workshops Benchmarking Sales Coaching