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2. Strategic Alignment of Public (WIB) and Private (Corporate HR) Workforce Development Strategies and Resources Christine Purcell Associate Director, Supplier Network, Industry Workforce & Manufacturing Development California Space Authority CWA Meeting of the Minds September 8, 2007, 4PM

3. Agenda Program Objectives – Anne McMonigle and Christine Purcell HR Objectives, Functions, Integration with Corporate Strategy, Concerns and Trends – Christine Purcell (20 minutes) Synopsis of HR Focus Group input and SDWP cases studies – Chuck Flacks (10 minutes) Successful strategic implementation between a WIB and Corporate HR corporate - Kris Stadelman (10 minutes) Q&A and discussion - 20 minutes.

4. Program Objectives: Course Purpose: Increase WIB professional familiarization of HR objectives and fundamentals and how public workforce development recourses and funding can enhance corporate HR Workforce Development plans, creating a tighter alignment of private and public workforce development strategies and resources. Course Objectives – WIB professionals will become more familiar with: History and intent of the Workforce Investment Act (WIA). WIA and Workforce Investment Boards (WIB) resources and how they can integrate and enhance a corporate HR workforce development plan. HR fundamentals, objectives, areas of practice, processes and concerns. How HR strategy is integrated with corporate life cycle, market strategy How the HR and Workforce Scorecards are integrated with the Corporate Balanced Scorecard How public workforce development entities and resources can more tightly align with corporate strategies and programs.

5. Additional Program Background Additional tool – Workforce Investment Act and Workforce Investment Board (WIB) for HR Professionals course material; can be used to customize for briefing to employers Delivery Options 60-90 minute overview of Corporate HR Fundamentals, Workforce Development Strategy and Recourses for WIB professionals – onsite and webinar deliveries 3 hour workshop to include above and additional material regarding HR practice areas, processes, concerns and alignment – and how public resources can integrate in these areas to enhance the corporate HR workforce development plan 6 hour workshop with both WIBs and HR attendees to include the above and development of attendee workforce development plans mapped to public resources

6. Also a version targeted to Corporate HR Professionals; CWA & CSA will be at Pacific West HR Conference – PIHRA and SD SHRM

7. Corporate HR Objectives, Areas of Practice and Functions Objectives - HRs most critical deliverable to the corporation is an optimized workforce to execute corporate objectives Integration of HR Strategy and Systems with Corporate Strategy HR Strategy Alignment with Stage of Business Life Cycle HR Strategy Alignment with Corporate Market Strategy Optimized human capital resources, integrated with technology and processes to meet corporate objectives The right talent at the right time in the right place at the right cost Being the employer of choice Aligned employee engagement – customer satisfaction correlates with employee satisfaction Corporate, HR and Workforce Balanced Scorecards Top Corporate HR Trends and Challenges

8. Areas of Practice and Functions, Alignment among HR Systems and Integration with Corporate Strategy Strategic Management Talent Acquisition - Recruitment – sourcing, selection, hiring, on-boarding Talent and Workforce Development Talent Engagement Performance Management – must calibrate and differentiate Organizational Development, including change management Employee relations Total Rewards – recognition, compensation and benefits Compliance

9. AnalyzeImproveControl Measure Results, Adjust DefineMeasure Gap Analyses: Performance Engagement Talent Are the right leaders and staff in place to execute well, or make corrections early? Are A players in A roles? Have metrics, policies, practices and processes been optimized? Strategic Management Implement and standardize metrics, policies, practices and processes to lay the foundation for success Workforce & Talent Development Performance Management Organizational Development, including change management Recruitment – sourcing, selection, hiring, on-boarding What is the value of the data? Are the metrics correct? Performance Management Rewards – recognition, compensation and benefits Compliance Are Objectives and Goals met? If not, adjust Strategic Management Organizational Development, including change management HRs most critical deliverable to the corporation is an optimized workforce to execute corporate objectives. Environmental Assessment, SWOT, PEST Corporate & Market Strategy Corporate Culture HR implications and integration with Corporate Strategy Define Long term & Short term Workforce Requirements – critical roles (A), competencies, headcount Define metrics to drive desired behaviors Strategic Management Talent Assessment Performance Measurement Change Readiness Employee engagement Workforce & Talent Development Talent Engagement Performance Management Organizational Development, including change management 123456 Integrated HR Processes & Systems using Six Sigma DMAIC Methodology

10. Talent Strategy Employee Life CycleAttract Develop Retain Business Strategy and Objectives Talent Strategy Strategy & Goals Alignment Define Strategic Competencies Optimized Sourcing & On boarding Compensation Organizational Readiness Change Management Engagement Succession Plan Career Development IDPs Rewards & Recognition Performance Management & Calibration Talent Review & Calibration Goal Setting - with cascading goals Effective Feedback and Coaching Competencies Job Families Exit Technical Training Functional Training Management & Leadership Development: Consistent Foundation Strategic Upgrade Individual, team, organization

11. HR Strategy Aligned with Organizational Life Cycle © SHRM 2009

12. HR Strategy Aligned with Organizational Life Cycle

13. HR and Market Strategy Alignment

14. Corporate, HR and Workforce Balanced Scorecard Alignment – Balanced ROI Source: Mark Huselid, The HR scorecard Seminar ©2004 Robert S. Kaplan and David P. Norton popularized the corporate balanced scorecard; Mark Huselid developed and popularized the HR and Workforce Scorecards

15. Workforce Development – objectives, areas of concern and challenges Optimized Human Capital Source Select Develop Retain, Manage Out Behavior-Based Interviewing - The single best predictor of future behavior and performance is past behavior and performance. Costs – HR ROI Engagement – correlated with ROI Succession – Rapid Response from WIBs opportunity

16. Employee Engagement Data 16 Actively Disengaged Up for Grabs 13%76% Fully Engaged 11% Motivation and Commitment Intend to Stay Go Extra Mile The Lack of Engagement Can Be Masked By Low Turnover and Long Work Hours Performance Connections Copyright 2009

17. Further Engagement Research The reduction in employee engagement costs US businesses over $300 billion dollars a year (Gallup) Increasing employee engagement by 5 percent can add 2.4 percent to a business operating margin (Towers Perrin) Psychologists report that one of the most important keys to happiness is engagement (Journal of Applied Psychology) Human capital practices account for as much as 43% of the difference between a companys market-to-book value and its competitors. (Amit & Shoemaker) HR Magazine: Were running as an economy at 30 percent efficiency because so many workers are not fully engaged. The presence or absence of employee engagement significantly impacts the customer 17 Performance Connections Copyright 2009

18. Active Engagement - ACT Accountability and Execution Cascading aligned goals Corporate strategy and value–based goals Clear Communication Feedback Resources and Information to get the job done Change Readiness Flexibility Creativity Innovation Collaboration Empowering Sense of Purpose Performance Connections Copyright 2009

19. Trends – HR Strategies Shift from job descriptions to competency models and job families Jobs functions change, but competency requirements remain Promotes flexible workforce – creates a pool of talent Promotes cross-functional experiential learning Emotional Intelligence competencies are important Integrated experiential/mentoring/formal learning talent development models Strategic Individual Development Plans Succession Plans Planned Job Rotations with Business Objectives & Metrics Managed mentor matching for different development needs Formal training Assessment - accelerate, optimize, improve, manage out Pay for Performance – defined standards, variable pay, individual and organization success incentives

20. Trends – HR Practices Multigenerational Workforce – 4 generations Spiral Career Paths – lattice rather than ladder Multidisciplinary, systems knowledge and problem solving needed – CA Career Readiness Survey - Employer Survey Online Link: http://www.CaliforniaSpaceAuthority.org/html/government_pages/car eer-readiness.html Workforce Allocations Strategy is shifting Flexibility, Scalability, Just in Time Skills Composition Target, such as: 30% employees 30% temporary employees 20% independent contractors 20% outsourced Source: Alvin Toeffler: Future Shock Most important criterion for next job: Interesting work (29%) Meaningful work (18%) Work/life balance (18%) More than half agreed: I dont think in terms of career…I look for work that is satisfying. (52%) I dont expect my employer to provide a clear path for me. (57%) Source: BlessingWhites The State of Career 2007 Report

21. Emotional Intelligence Competencies are Important EQ – Behavioral characteristics, correlated with job success up to 66%, dynamic and increases over your lifetime, comprised of skills that can be learned, uses emotion as well as IQ – Measures internal processing of information, correlated with job success up to 25%, formed by the late teens and cannot be enhanced through experience, relies solely on relies solely cognitive skills, gets you through school The rules for work are changing.. Were being judged by a new yardstick: not just by how smart we are, but by how we handle ourselves and each other. -Daniel Goleman, Working with Emotional Intelligence, 1998

22. Emotional Intelligence Concepts and Competencies Key EQ Components: Self-Awareness Self-Control Social Awareness Social Control Key EQ Competency Areas: Motivation Empathy Flexibility Optimism Many leadership competencies, 2 Mandatory leadership skills: ?????

23. Mandatory Leadership EQ Competencies Key EQ Components: Self-Awareness Self-Control Social Awareness Social Control Key EQ competency areas: Motivation Empathy Flexibility Optimism Mandatory EQ leadership skills: Empathy – the ability to put your self in someone elses place professionally and personally Feedback – the ability to accept, apply and deliver feedback effectively

24. Trends – Employment Market Unemployment rate rose to a 26-year high of 9.4% 16.4% of people are underemployed Unemployment rates rose in 48 states: CA, NV, NC, OR, RI, SC, FL, GA post highest rates ever. Rates will continue to climb until summer of 2010 1/3 of Americans have cancelled vacation plans Average workweek is above 40 hours 46% of Americans say theyre struggling Source: http://money.cnn.com/2009/06/19/news/economy/state_unemployment_report/index.htm

25. Trends – Market and Reactions On pace for the worst recession in post WWII era Deepest global recession in 30 years Federal budget deficit Increasing corporate downsizing Decline in spending on professional development - Source: SHRM Study Some reactions: Trimming Perks and Benefits Upgrading talent rosters Postponing Retirement Transfer of Skills Relocating Going back to the classroom

26. 2007 – CEO Top 10 Global Challenges 1 Excellence in execution38.3% 2 Sustained and steady top-line growth36.8* 3 Consistent execution of strategy by top management 31.8 4 Profit growth28.4 5 Finding qualified managerial talent27.2 6 Customer loyalty/retention26.3 7 Speed, flexibility, adaptability to change25.4 8 Corporate reputation23.7 9 Stimulating innovation, creativity; enabling entrepreneurship18.7 10 Speed to market 18.2 Source: The CEO Challenge, an annual survey of over 500 CEOs worldwide executed by The Conference Board and various partners *In a separate study, ~1100 CEOs surveyed globally, the Number Two threat to Growth is Availability of Key Skills at 72%. Only over-regulation was seen as a greater threat Source: Pricewaterhouse Coopers 10th Annual Global CEO Survey, 2006 Directly impacted by Human Resources Customer loyalty/retention is directly correlated to aligned employee engagement (HR Impact) Customer loyalty/retention is directly correlated to growth and profit

27. Global HR Trends 2008-2009 1. Increasing necessity to mange talent globally 2. Increasing Multiculturalism of the global workforce 3. Increased necessity for global leadership competencies 4. Changing demographics will continue to broaden the variety of work-style preferences 5. Increased pressure on HR professionals to leverage organizational knowledge globally 6. Increased movement of western workers to eastern locations die to the growth of emerging market based multinational companies. Source: SHRM Workplace Forecast (2008)

28. Going Global: Ten Things HR absolutely must do 1. Include people and HR issues in your MA&A due diligence 2. Avoid pushing an HQ-centric agenda 3. Understand local labor issues 4. Learn about cultural and historical issues 5. Use robust compensation and benefit practices 6. Recruit the right people 7. Establish, measure and report relevant local HR metrics 8. Teach the folks back home about the new countries 9. Establish networks and learn from others 10. Create a locally-relevant, retaining work Environment - Source: Lance J. Richards, GPHR, SPHR, Senior Director and Global Practice Leader, Human Resources Consulting, Kelly Services, June 29, 2009 ©SHRM 2009 Local markets are global too – global challenges and practices apply locally

29. Employer Services and Alignment of WIB Resources with Corporate and HR Strategy Workforce development One-stops, public and custom, consortium model Job recruitment and placement – alignment with Corporate and HR strategy Internships, work experience and On the Job Training (OJT) Adults and Dislocated Worker Services Job search skills Counseling and coaching Assessments and labor market advice Occupational skills training Basic skills training Internships and work experience Layoff assistance Aversion strategies Help with layoffs Services to laid off workers Human resource assistance – strategic and tactical, career paths, succession planning alignment, engagement, etc. Rapid Response

30. Employer Services and Alignment of WIB Resources with Corporate and HR Strategy Additional Government Resources Employer Training Program (ETP) and Funding Community College Economic & Workforce Development (EWD) programs Extension services at California State University (CSU) and University of California (UC) Models and Case Examples – WIB and Corporate Workforce Development Alignment and Successes

31. Strategic Alignment of Public (WIB) and Private (Corporate HR) Workforce Development Strategies and Resources Chuck Flacks, Director of Research and Policy, San Diego Workforce Partnership HR Focus Group Summary CWA Meeting of the Minds September 8, 2007, 4PM

32. Biggest Challenges Getting employers to pull trigger and hire HR Departments too reactive, not strategic Commitment by employers to training Employee retention and engagement Management commitment to employees Hiring youth millennials

33. Role of Workforce System One-Stops are key: Source of referrals (diversity, pre-trained, targeted) Good place to refer laid-off employees Safe place to train incumbent workers On the Job and Customized Training

34. Recommendations from HR Communication – make crystal clear what it is we do Alignment between private sector (placement agencies) and public sector workforce systems Focus on incumbent workers – ladders and lattices Help industries understand benefits of training for the future

35. What Should WIBs Know About HR? HR often low on totem pole in companies Needs change more frequently than training is available Human resource planning (and workforce system) are often too reactive – strategic planning needed.

36. Strategic Alignment of Public (WIB) and Private (Corporate HR) Workforce Development Strategies and Resources Kris Stadelman, Executive Director, NOVA CWA Meeting of the Minds September 8, 2007, 4PM

37. As always, its about the relationship First impression may be Rapid Response Can assist in transition from personnel to talent development Boeing example – pipeline mapping