accelerating adoption of sector strategies a state policy development assistance project funded by...

Accelerating Adoption of Sector Strategies

A State Policy Development Assistance ProjectFunded 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 SpeechesSlide 2


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


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


15+ States Using/Developing Sector Strategies

Slide 5


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


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


Impact of Sector InitiativesWorkers: 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


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


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


Slide 11

The project will assist state teams to develop sector strategies. Teams will be selected in

Spring, 2006. For more information, contact:

• Jack Mills, National Network of Sector PartnersNational Economic Development and Law Center

[email protected]

• Martin Simon, Center for Best PracticesNational Governors Association

[email protected]

• Larry Good, Corporation for a Skilled [email protected]


Slide 12

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