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The Role of Workforce Development
in Achieving Business Growth

In January, then President-elect Bush had a meeting with top executives from some of the major technology companies in the country, including Dell Computer, Cisco Systems, Sun Microsystems, Oracle, Hewlett-Packard, IBM and Intel. One major topic that received attention was education. Speaking on behalf of the other executives, Cisco's John Chambers said executives raised alarms about the American workforce. Chambers went on to say, "the jobs will move where the best-educated workforce is,". Noting American students ranking of 19th in math and 18th in science he said, "we believe we've got about a decade to fix this."

A misconception is circulating in many communities that with the extremely low unemployment levels we have today, companies are forced to take whatever "warm body" they find. But from what I see and hear, this is far from the truth. In today's competitive business world -- where quality, innovation, speed and customer satisfaction are a must -- companies will move their businesses to an available labor market before suffering a continuous business loss and corresponding reduction in market value.

A New Competition

Today, just as communities have to compete for new businesses and continued economic growth, so too must existing businesses or segments compete for continued growth and opportunities within their own companies. How do we say to the upper management of our company, "locate that new product line here, not in Texas, or Mexico, or Singapore"? One major way is to demonstrate to corporate management that your organization has the ability to meet its current business commitments. You need to be able to show that your workforce has the skills and abilities to handle the latest technological assignments. And that your workforce and the community have the training and development structure in place to grow skills and knowledge significantly as the business changes.

No high-wage, high-skill business enterprise that I see can continuously meet the needs of the global market place without addressing the need for continuous learning. Without a formal, internal training and development structure and a partnership with the community, which includes all levels of education and government, the task of continually training a large, high-performance workforce is impossible. Though there are many systems and relationships needed to attract, retain and educate a skilled workforce, in this report I will mainly address what the employer can do to meet their own requirements. Relationship Between Business Needs & Education

Performance requirements for any business are created from the company's business needs or strategy. When we compare our desired performance to our current performance, the resulting difference is a performance gap or barrier. There is always some gap and it can usually be attributed to the difference between our knowledge and skills at a given time versus the knowledge requirements attributed to ever-changing technology, customer requirements, markets and general core competencies. The primary role of workforce development within an organization is to minimize the gap between the skills required to meet these requirements and the actual skills of our workforce. This is primarily accomplished through internal and external course work and on-the-job training.

A second gap is created from the difference between the skills and knowledge of the entering workforce and those required to meet business objectives. In President Bush's economic summit, gathered CEO's identified a lack of math, science, and technology as a major workforce gap.

Though there will always be some gap as education monitors, defines and develops curriculum to mirror the real world, the reaction time is the primary determinant in the size of the gap. Just as business must reduce the cycle time of change within an organization in the development and manufacturing of products, education must also reduce the cycle time of curriculum and program changes to meet the needs of it's customers, the public, including employees and employers.

How One Business Builds Workforce Capacity

At 3M, we provide knowledge and skill training to employees in two different ways: on-the-job training (OJT) and classroom training. On-the-job training is used to build the actual job skills the employee needs to do his or her job. We use a structured and formal approach to OJT at the 3M plant. We have conducted job and task analysis on most of our processes and in conjunction with the University of Missouri-Columbia have created "instructor guides" for trainers to use in conducting OJT. This insures that no matter who trains an employee, he or she will receive consistent and complete training. All departments also have a formal operator certification, and in some cases re-certification, program in place to insure that all employees meet the minimum qualifications for their positions. In our rapidly changing environment, the goal of operator certification and on-the-job training is for rapid deployment and re-deployment of trained employees between product lines, as business needs change. The faster an employee can move to a qualified skill level, the faster the product line can meet it's production and yield requirements.

Classroom training at our plant consists primarily of "hard skills". I define hard skills as those skills that can be outwardly demonstrated, such as computer usage and knowledge of Statistical Process Control (SPC) principles. We rarely train in skills that attempt to modify an employee's behavior. Internal, classroom training provides individual training in the areas of: Safety & Security; Management & Supervision; Quality & SPC; Team & Problem Solving; Computer; and Business Training, including oral and written communication.

We have instituted assessment testing with minimum test scores as a requirement for applying for skilled maintenance, Laser technicians and our new Specialty Optical Fiber technicians. These tests cover math, reading comprehension, mechanical aptitude and critical thinking. They test what the individual already knows and is capable of learning. Two years ago we offered similar assessment tests, on a voluntary basis, to allow employees to determine their math skill level. We then offered applied technical math classes to volunteers to allow them to improve their math scores and enable them to qualify for future positions. As new businesses with increased knowledge and skill requirements have been added, product managers are requiring a demonstration of skills and knowledge through testing. Increasingly, the number of positions available to employees who lack the necessary knowledge and skills has diminished.

With all that we attempt to accomplish, I do not consider our business to be an education center. We don't have the resources, capacity or desire to fill the role of an education institution. We also cannot make up for what may amount to a lifetime of underachievement in education. We expect new employees, especially those who have graduated from high school in the last five years, to have the basic knowledge and skill requirements in math, reading comprehension, and science, when they apply at 3M. In the past we have addressed the issue of a lack a basic academic education that does not meet today's high technology and high performance requirements. But, today we are most likely to refer employees to local education institutions through our corporate tuition reimbursement program, to provide them with the education requirements they need. In fact, we are currently working on using the college admissions tests as a way to qualify applicants. For those who do not meet minimum requirements, this also provides a way to identify remedial courses, similar to college course placement.

Where do we go from here?

An organization's ability to meet and exceed it's current, strategic goals and requirements is the first step in demonstrating to upper management it's capacity for expansion and new product allocation. This is best accomplished by having the best-trained and educated workforce "globally". To do this, employers' need to communicate to educational institutions their future employee skill and knowledge requirements. Education must be receptive to new ideas and developments in producing qualified candidates. It must also mirror the business environment in increasing its speed in implementing new programs. This in turn will provide a larger pool of qualified applicants and reduce the employer's cost of training and retraining qualified workers.

Employers and employees need an education system that provides degree programs in areas required by today's businesses, at a time and location that meets the demands of the working adult. Many companies offer tuition reimbursement, but in most cases programs in technical areas such as engineering and science, are not offered at a time or location accessible to today's employed worker.

If technology and businesses are constantly changing, and the cornerstone of any business is it's human capital, then employees must also continually change. The education and training of current and future employees goes beyond the training of skills to also accomplish our goals for motivation, retention, and recruitment. I firmly believe that an American system of business and industry, education, and government, working together in unison can meet current and future global business standards for quality, innovation and speed.

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Authored by: John F. Durboraw, Plant Training & Development, 3M Company, Columbia, MO
Source: Creating Quality Newsletter, Volume 10, Number 5, May 2001

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