INTRODUCTION

ENVIRONMENTAL SCAN HIGHLIGHTS

and

CAREER DEVELOPMENT SYSTEM REPORT CARD

for

The Strategic Planning Process

of
The Kalamazoo - St. Joseph Michigan Works! Area

August, 2000

Environmental Scan Highlights & Career Development System Report Card

Prepared for

The Kalamazoo - St. Joseph Workforce Development Board

& Michigan Works! Agency

Prepared by

Gerry Geik, Principal Consultant

InsightsPlus Consulting

8400 North 26^th St.

Kalamazoo, MI 49004

This material was developed with the support of grant funds awarded by

the Michigan Department of Career Development.

August, 2000

ENVIRONMENTAL SCAN TEAM MEMBERS

Irv Cumming, Assistant Superintendent, Kalamazoo Regional Educational Services Agency

Gerry Geik, Principal Consultant, InsightsPlus Consulting

Penny Miller, Director of Workforce Training, M-TEC, Kalamazoo Valley Community College

Judy Moore, Executive Vice President, Kalamazoo Chamber of Commerce

Dr. Jay Newman, Superintendent, St. Joseph Intermediate School District

Craig Schreuder, Deputy Director, Kalamazoo-St. Joseph Michigan Works! Agency

Jan Smith, Special Projects Coordinator, Kalamazoo-St. Joseph Michigan Works! Agency

Sharon Smith, Professor, Glen Oaks Community College

INTRODUCTION

To help place the contents of the Environmental Scan Highlights and Career Development System Report Card document in proper context, the following is offered as background.

The Michigan Department of Labor and Economic Growth (MDLEG) has conceptualized Michigan’s Career Development System as having 3 subsystems:

Career Preparation System -- delivered by K-12 School Districts, Community Colleges, Private Technical Schools, Colleges and Universities;

Workforce Development System -- delivered by Michigan Works! Services, Adult Education Programs, Work First Programs, and Workforce Investment Act Programs; and

Worker Enhancement System -- delivered by employer-based training programs and customized training activities.

Each Michigan Works! Area (MWA) has several governing bodies, agencies and institutions involved in establishing and delivering an array of programs and services that make up the 3 subsystems listed above. It is expected by the MDLEG that through strengthened partnerships among the organizations involved in each MWA, coordination of career development services will be enhanced, allocation of available resources will be optimized and career development system outcomes will be improved.

In an effort to move this expectation forward, the MDLEG recently asked each of the State’s 25 Workforce Development Boards (WDB) and their respective Michigan Works! Agencies (MW Agency) to begin an extensive community-based strategic planning process that would invite and involve all the partners in the Career Development System. The thrust of this request is "Building Strategic Partnerships for Career Development". Additionally, the MDLEG has defined the nature of the strategic planning process it wishes all MWAs to follow. The process includes:

Developing an Environmental Scan and Career Development System Report Card -- creating a synthesis of key community trends and system performance trends that provides an intelligence framework for decision-making and agreement in the community about important facts.
Conducting a Community Outreach/Consensus effort -- publicizing the environmental scan and proposed goals and measures included in the Report Card in order to receive public comment and gain community support.
Determining Strategic Assets and developing a Comprehensive Plan -- identifying and providing evidence for those programs/institutions whose performance is going in the direction of desired outcomes and developing a plan on how each institution will focus/re-deploy its resources to achieve mutually desired outcomes.

Further, the MDLEG has prescribed the scope and content categories for the Environmental Scan and has provided grant funding to support the strategic planning efforts of each WDB.

In order to accommodate the MDLEG’s request, the Kalamazoo - St. Joseph Michigan Works! Agency applied for grant funding in March, assembled an Environmental Scan Team in May, and contracted the services of an Independent Consultant to complete the "Environmental Scan and Report Card" phase of the strategic planning process.

THE PROCESS OF STRATEGIC PLANNING - A PERSPECTIVE

Although commonly used in conversation, the term "Strategic Planning" is not commonly understood with distinctness. As a form of planning, strategic planning can be unconditionally distinguished from other forms of planning such as program planning, comprehensive planning, project planning, and annual planning. The essence of strategic planning is crafting long-term strategies that, when followed, will favorably position the organization/system to thrive in a future rationally anticipated through analysis of internal and external trends and issues.

Inherent in the process is: being clear about mission and values; apprehending relevant elements of the future; establishing broad long-term measurable goals; creating and crafting strategies based on threats/opportunities and organizational assets; and thoughtfully developing, financially supporting, and vigorously implementing ‘Plans of Action’ for each strategy.

ENVIRONMENTAL SCANNING - A CONCEPTUAL VIEW

Environmental scanning is a systematic process for gathering and analyzing information about an organization’s external environment [The External Scan] and relating it to that system’s internal environment [The Internal Scan]. Environmental scanning exposes key opportunities and threats confronting a system so planners can formulate strategies to take advantage of opportunities and avoid or reduce the impact of threats. An Environmental Scan will not necessarily give answers about what to do, but bring to the surface many of the issues that will be communicated and discussed widely as the system develops its strategies and plans.

An Environmental Scan can provide information on emerging issues and trends relevant to a system’s long-term well-being, develop partnerships among scanners and their organizations, educate participants/stakeholders about issues and trends relevant to a system’s viability and effectiveness, and provide a useful information base for planning strategically.

THE CAREER DEVELOPMENT SYSTEM REPORT CARD - A DESCRIPTION

The "Career Development System Report Card", defined and required by the Michigan Department of Career Development, lists proposed Career Development System goals based on conclusions from the External and Internal Environmental Scans. It presents strategic goals tentatively considered to be "priority" for the Kalamazoo - St. Joseph Michigan Works! Area. It also presents the historical performance trends and 3-year improvement targets associated with each goal.

The thrust of the "Community Outreach and Consensus" phase of the MDLEG’s strategic planning process is eliciting community comment and support regarding the content of the Report Card.

STRATEGIC PLANNING

ENVIRONMENTAL SCAN / SYSTEM REPORT CARD PHASE

MISSION STATEMENT

The mission of the Kalamazoo - St. Joseph Michigan Works! Area is to develop, sustain, and continually improve a Career Development System that produces workforce members who possess the skills essential to participating in gainful employment and enhancing the region’s economy.

ASSUMPTIONS

A healthy business climate enables community well being.

Highly skilled workers are essential for business success.

Workers considered to be "highly skilled" possess both skills specific to the occupied job and skills general to virtually all workplace settings.

In today’s culture, the greatest opportunity to effectively transmit general workplace skills is in the formal education system.

One’s income and quality of life is dramatically influenced by the skills and knowledge one possesses.

ENVIRONMENTAL SCAN HIGHLIGHTS

Significant Trends

Conclusions

We are living in a new, ever-changing globally-competitive economy -- powered by technology, fueled by information, and driven by knowledge.

The Area’s employment histories and forecasts show less growth than the State’s.

The Area’s worker earnings and per capita income are not keeping pace with neighboring counties.

More people are moving out of the Area than are moving in; those moving in have less income than those moving out.

While employers find it difficult to recruit proficient employees, some employment-related placement rates from technical/occupational programs are less than optimum.

Some essential workplace skills possessed by the Area’s entry-level workers are weak or weakening.

K-12 Education test scores (MEAP) are not keeping pace with State averages.

Although slightly less than State averages, persistent and significant poverty levels continue to exist in the Area.

In the skills-intensive economy of the 21^st Century, one thing is clear: knowing means growing. Indeed, the correlation between education attainment and income is becoming stronger and stronger. It has been difficult in the past and it will be virtually impossible in the future for individuals with low levels of education and workplace skills to vigorously participate in the economy.

The improvement of education levels and workplace skills will become an increasingly critical force for propelling the local economy into a growth pattern equal to or better than neighboring economies. Optimized learning at all levels and for all populations holds the promise of moving families out of poverty, improving per capita income, enhancing the local economy, and bettering the over-all quality of life for the Area’s residents.

Learning improvement, skills enhancement, and vigorous employment for those participating in the Career Development System’s education and training activities are prevailing themes of the strategic goals that follow.

CAREER DEVELOPMENT SYSTEM REPORT CARD - PROPOSED STRATEGIC GOALS

GOAL 1. Enhance workplace readiness skills.

Data from the Environmental Scan indicate employers view some workplace skills as weakening in entry-level employees and find it difficult to recruit proficient employees.

Relevant Historical Trends

Performance Targets

Workforce Readiness - LACK HISTORICAL TREND DATA

Results of 1998 Survey of Regional Employers:

Workplace % of Employers Indicating

Know-how Skill Skill is Weakening

Attendance 49.9

Punctuality 40.6

Initiative 40.0

Common sense 39.6

Positive attitude 36.5

Responsibility 35.9

Flexibility 35.3

Problem solving 35.0

Over-all employment-related placement rates for Community College Technical/Occupational students:

1996 1997 1998

57.4% 59.1% 64.8% (rev. 9/9/00)

IDENTIFIED DATA GAP -- There is no valid mechanism in place for objectively assessing and historically tracking workforce readiness skills.

Year 1

Secure a reliable, valid workforce readiness assessment tool (e.g., WorkKeys). Pilot test the selected tool, collect data, and share results and benefits.

Placement-rate for Community College Technical/Occupational students -- At least a 66% average

Year 2

Expand use of the selected workforce readiness assessment tool. Collect data and share results.

Placement-rate for Community College Technical/Occupational students -- At least a 67% average

Year 3

Expand use of the selected workforce readiness assessment tool. Collect data and share results.

Placement-rate for Community College Technical/Occupational students -- At least a 68% average

GOAL 2. Increase academic performance.

Data from the Environmental Scan indicate many K-12 levels/areas tested with the MEAP are not keeping pace with state averages, many adults need adult education services, and too many college students are in need of developmental education.

Relevant Historical Trends

Performance Targets

MEAP - Percentage of score comparisons made between the MWA and the State showing our Area’s scores better than State scores:

95/96 96/97 97/98 98/99 99/00

50% 50% 67% 75% 25%

Adult Education completion rates: (based on locally-obtained data)

96/97 97/98 98/99 99/00

18.5% 23.6% 22.7% 18.6%

[NOTE: Single-year completion rates for Adult Education are based on a comparison of the number of participants completing programs and the total number of students. Generally, it takes multiple years for an individual to finish a high school completion program.]

1990 Census Data:

Number of individuals in the MWA 18 years of age and older with less than 9^th grade education -- 10,768

Number of individuals in the MWA 18 years of age and older with at least 9^th grade but less than a high school diploma -- 27,024

Community College developmental education success rates: (based on data obtained)

95/96 96/97 97/98 98/99 99/00

62.7% 56.4% 62.2% 68.1% 63.4%

Year 1

MEAP - At least an average equal to the state average in each level/area tested

Adult Education completions - At least an average of 3% increase over previous year average in each program

Community College Developmental Education success rate - At least an average of 2% increase over previous year

Year 2

MEAP - At least an average exceeding the state average in each level/area tested

Adult Education completions - At least an average of 3% increase over previous year average in each program

Community College Developmental Education completions - At least an average of 2% increase over previous year

Year 3

MEAP - At least an average of 2 points higher than the state average in each level/area tested

Adult Education completions - At least an average of 3% increase over previous year average in each program

Community College Developmental Education completions - At least an average of 2% increase over previous year

GOAL 3. Improve employment and income circumstances for Workforce Development program participants.

Data from the Environmental Scan indicate persistent poverty levels, less than desirable growth in per capita income levels and less than desirable wages for lower-income workers.

Relevant Historical Trends

Performance Targets

K/SJ MWA 1994-1998 growth in per capita income -- 15.5%

Neighboring counties -- 19.9%

Wages at 90-day follow-up for "Work First Program" participants:

94/95 95/96 96/97 97/98 OMW 98/99 OMW

$5.74 $6.04 $6.06 $6.45 $1.30 $6.87 $1.72

Wages at 90-day follow-up for "JTPA IIA Adult Program" participants:

94/95 95/96 96/97 97/98 OMW 98/99 OMW

$5.96 $6.47 $6.93 $8.61 $3.46 $9.27 $4.12

Wages at employment for "JTPA Older Worker Program" participants:

94/95 95/96 96/97 97/98 OMW 98/99 OMW

$6.70 $8.82 na $7.69 $2.54 $7.75 $2.60

Wages at employment for "8% SECG Program" participants:

94/95 95/96 96/97 97/98 OMW 98/99 OMW

$5.80 $6.64 $8.01 $8.88 $3.73 $8.61 $3.46

OMW = over minimum wage

[NOTE: Individuals eligible to participant in the above programs are from low-income circumstances.]

Year 1

Wages for participants -- At least an increase over previous year average equal to the annual cost of living adjustment plus 1 percentage point

Year 2

Wages for participants -- At least an increase over previous year average equal to the annual cost of living adjustment plus 1 percentage point

Year 3

Wages for participants -- At least an increase over previous year average equal to the annual cost of living adjustment plus 1 percentage point

GOAL 4. Strengthen incumbent worker skills.

Data from the Environmental Scan indicate employers consider workforce training a critical need.

Relevant Historical Trends

Performance Targets

Skills gained in training - LACK HISTORICAL TREND DATA

Employer-identified 5-year training needs for employees:

Skills Responses Percent

Computer skills 226 24.0

Communication skills 139 14.9

Basic academic skills 183 19.6

Continuous improvement 42 4.5

Work ethic 38 4.1

Customer service 36 3.9

2000 Survey of Chamber of Commerce members:

Biggest challenge?

Recruiting/retraining employees (one of the top five responses)

What can the Chamber do?

Training for workforce; also recruiting/retention tips (one of the top five responses)

What would you like to see as focus for the Chamber?

Training (one of the top five responses)

Demand for training -- from 1996 through 1999, an average of $319,362 per year in EDJT grant funds were accessed for incumbent worker training in the Area

IDENTIFIED DATA GAP -- There is no valid mechanism in place for objectively assessing and historically tracking skills gained from incumbent worker training activities.

Year 1

Design skills assessment methodology for incumbent worker training activities. Pilot test methodology. Collect data and make appropriate design modifications.

Year 2

Expand implementation of modified methodology. Collect data and share benefits.

Year 3

Implement continued use of developed methodology. Continue to collect data.