CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission of McKinsey & Company or the Itasca Project is strictly prohibited Overview:

CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission of McKinsey & Company or the Itasca Project is strictly prohibited Overview: Itasca Workforce Alignment Pilot efforts May, 2014

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 1 In 2012, the Itasca Project launched a Minnesota Higher Education Task Force to investigate this issue and several others The Itasca Project An employer-led civic alliance made up of private sector CEOs, the Governor, the Mayors of Minneapolis and St. Paul, County Commissioners, Chair of the Met Council, the leaders of the Higher Education institutions, and the leaders of major foundations and the United Way Generate high quality job growth Improve our regions education system Advance a comprehensive and aligned transportation system Build a thriving economy & quality of life in the metro region Reduce and eliminate socioeconomic disparities Itasca MN Higher Education Strategy Align academic offerings with workforce needs Foster an ecosystem of research and innovation Form new collaborations across higher ed. to optimize system- wide intellectual assets and efficiency Graduate more students Itasca Workforce Alignment Team Who is the Itasca Project Itasca Project goals Itasca general priorities MN Higher Ed priorities Todays focus = Todays focus Source: Itasca workforce alignment team - Confidential and preliminary not for distribution

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 2 2 The Workforce Alignment Team is made of leaders from the employer, higher education, foundation, government, & nonprofit sectors Name OrganizationRole Steve RosenstoneChancellorMinnesota State Colleges and Universities Scott PetersonExec. VP & Chief HR OfficerSchwans Mary NicholsDean, College of Continuing EdUniversity of Minnesota Michelle ChevalierDirector Graduate Business Career CenterUniversity of Minnesota Paul PribbenowPresidentAugsburg College Jeanne Herrmann COOGlobe University Judy WerthauserVP, Human ResourcesTarget Susan BiesVice President, Human ResourcesCargill Ann GibsonVP, Federal Relations and WorkforceMinnesota Hospital Association Collin BarrPresidentRyan Companies Traci TapaniCo-PresidentWyoming Machine Kathy GaalswykPresidentInitiative Foundation Frank ForsbergVP, Community ImpactGreater Twin Cities United Way Andrea FerstanDirector of Income StrategiesGreater Twin Cities United Way Kathy SchmidlkoferChief Operating OfficerGreater MSP Bill BlazarSr. VP, Business Development & Public AffairsMinnesota Chamber of Commerce Amy WalstienDirector, Education & Workforce Development PolicyMinnesota Chamber of Commerce Robin SternbergDirector, Job Creation InitiativeDEED Cynthia BauerlyDeputy of Workforce DevelopmentDEED Deb SerumSupervisor, Analysis & Evaluation OfficeDEED Kevin WaldCEOSpecSys Inez WildwoodChairGovernors WDC Mary RothchildDirector for Strategic Partnerships & Workforce DevelopmentMinnesota State Colleges and Universities Deb BelfryCareer Development DirectorBloomington Public Schools Lynn PlaschkoHR Director, HR Solutions Development and Shared ServicesGeneral Mills Coralea ClineVP, Human ResourcesPentair Business Education Chairs Govern- ment & Community

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 3 Progress to date has been informed and shaped by leaders from the employer, higher education, foundation, government, & nonprofit sectors Source: Itasca workforce alignment team - Confidential and preliminary not for distribution

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 4 600+ stakeholders provided valuable insights about challenges employers, academic leaders and career counselors face in addressing workforce alignment Source: Itasca workforce alignment team - Confidential and preliminary not for distribution NOT EXHAUSTIVE Academic leaders We are extremely focused on understanding & meeting the needs of employers, but we need real time data and better employer engagement to make that happen We truly value our employer program advisory meetings, but we need to find a way to make them more engaging and data driven so the conversation isnt always focused on the loudest voice in the room We need employer feedback to make sure we are teaching the right content, but it is incredibly difficult to get the right people in the room to make that happen Career counselors Working through career counselors and academic advisors is a great way to help a large # of students & job seekers know what skills & jobs are in demand Knowing the top employers and skills in each industry and occupation in real time will make a HUGE difference Accessing real time data will help, but our counselors are completely under-resourced and spend most of their time dealing with non-counseling activities Employers Im tired of being asked about my needs I want to see things CHANGE. Some schools use advisory meetings more to brag and network than to really seek guidance. I think we need more data and less opinions in the room I dont have as much trouble finding fresh college grads I need help finding people with specific experience or technical skills I need help finding which schools have the candidates I need

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 5 We used stakeholder feedback to define success for Workforce Alignment in the state of Minnesota From To Plenty of candidates Shortened time to fill open positions More students and job-seekers informed regarding job demand on educational paths to fill jobs in demand Not enough candidates Long time to fill open positions Students & job seekers not aware of or not interested in growing / hot occupations Candidates with missing skills Difficulty finding candidates with the right skills or experiences to meet changing employer needs Employer frustration and high talent acquisition costs Candidates possess foundational and technical skills needed for the future Employers can hire the talent they need to grow Employers can invest more in developing talent Inconsistent coordination Difficulty identifying academic institutions that can serve as partners to meet talent needs Limited visibility into actions taken by academic institutions based on employer feedback Efficient and strategic coordination Easy for employers to partner and connect with relevant institutions Fact-based decision making focused on faster response time to labor market changes and planning for future needs Goal: We have the right number of graduates and job seekers with the right capabilities needed to meet Minnesotas future workforce needs

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 6 To address this opportunity, the Workforce Alignment team is piloting tools to bring information and enablers to improve decision making and transparency between stakeholders Goal: We have the right number of graduates and job seekers with the right capabilities needed to meet Minnesotas future workforce needs InformationToolsEnablers Higher Education, career counseling and workforce training Students & job seekers Employers Better decisions Better decisions

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 7 We launched a set of pilots in January that involve hundreds of academic, employer and career counseling stakeholders across the state Anoka Hennepin Ramsey Wash- ington Dakota Scott MnSCU colleges Workforce Centers MnSCU universities University of Minnesota Private, includes for-profit ` 20+ Higher Education institutions: University of Minnesota 16 MnSCU colleges 3 MnSCU universities Augsburg College Globe/ MN School of Business 5 Workforce Centers including adults and youths/ high schools Employer Advisory Boards for the following programs: Strommen Center for Meaningful Work First line supervisors of production workers Mobile application development Business Analyst Operations Management Automotive technician Numerous manufacturing programs (CNC, welding, mechatronics, others) Health informatics Many other advisory boards at pilot schools!

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 8 The pilots are testing the impact of new data tools and employer engagement approaches Pilots are testing impact of new data tools and approaches on new program decisions impact of real time job data & cloud-based employer feedback tools on curriculum alignment decisions impact of real time job data and career/ed data on student & job seeker decisions impact of new data tools and engagement approaches on employer advisory boards and decisions Healthcare programs planning at Winona Automotive technician program with the Transportation Center Student success day at MCTC Manufacturing programs advisory groups at South Central ExamplePilot Academic planning process pilot Curriculum alignment process pilot Career planning process pilot Employer advisory process pilot

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 9 Initial feedback has been encouraging from pilot participants SOURCE: Improve Group Pilot kick off surveys

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 10 Pilot participants are using the tools and data as we intended to inform decision-making SOURCE: Improve Group Mid point surveys Pilot participants told us they are using the tools to achieve four primary goals: Increase high level understanding of the labor market Support course or program-related decisions Improve engagement with employer community Help students and job seekers find the careers they want PILOT PARTICIPANT MID POINT CHECK IN

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 11 Students, job seekers and employers are also seeing value in the new data sources to their decision-making processes SOURCE: Improve Group student, job seeker and employer surveys Students and job seekers are finding the data on which skills are in demand by employers to be very valuable in their job search and career planning process Employers found that the new data and information improved the quality of the employer advisory meetings, discussions and guidance they were able to deliver to the academic institution PILOT PARTICIPANT MID POINT CHECK IN

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 12 We are also getting insights into potential barriers and approaches to scaling the pilots efforts SOURCE: Improve Group Mid point check ins DETAILS IN APPENDIX Challenges to roll-out: Stake holder resistance: tendency to trust personal experiences and opinions over new data sources, aversion to focusing on the needs of employers Tool-specific frustrations: difficulty to find the information needed, general complexity Lack of time or resources: competing priorities Approaches to scale: Develop strong change management approach: strong leadership support at every site, arm participants with a change story, target the influencers first, more communications Provide more high quality training: increase frequency of trainings, bring more real-life examples to the trainings Create a strong support network: centralized swat team of data tool experts Create reinforcers to shift behavior: Require data and analysis from the tools in existing processes, celebrate and reward users

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 13 Next steps for our team Learn from the pilots Wrapping up today! Identify which tools and processes have the greatest impact on improving information, engagement and decisions Identify barriers to change, key enablers for success and capture case studies to build momentum Codify and share pilot results and third party evaluation in Q2:2014 Make the effort sustainable Develop approach to ensure ongoing employer higher ed engagement Scale most effective tools & approaches Transition work to long-term owner to ensure momentum and sustainability

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 14 What are your reactions to the progress to date? Where do you see opportunities to incorporate new information sources into academic planning? How would you roll-out any future tools/ information sources? What would be needed to ensure the tools are used at a campus level?

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 15 Appendix Pilot participants Additional detail on pilot approach

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 16 The pilots involve hundreds of academic, employer and career counseling stakeholders across the state Students & job seekers Employers Higher Education Four year colleges & universities: Augsburg College Globe / MN School of Business MSU-Mankato MSU-Moorhead University of Minnesota Winona State University Collaborative efforts with several colleges Transportation Center (4 colleges) 360 Center for Manufacturing (13 colleges) Career counselors from five workforce centers working with adults and youth on training/ education plans Anoka County Minneapolis NE Office of Job/ Training (includes high Schools in Career EdVenture) Academic/ career counselors at colleges participating in pilots Advisory Boards for the following programs: Strommen Center for Meaningful Work First line supervisors of production workers Mobile application development Business Analyst Operations Management Two year colleges: Alexandria Technical & Community College Minneapolis Community & Technical College Riverland Community College Rochester Community & Technical College Saint Paul College South Central College Stearns/ Benton counties SE MN Workforce Development Inc. (6 locations) Automotive technician Numerous manufacturing programs (CNC, welding, mechatronics, others) Health informatics Many other advisory boards at pilot schools!

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 17 Overview of pilots SOURCE: Source PilotChallengeApproach Academic planning process pilot Academic leaders need better information & feedback in order to more quickly meet student and employer needs Test impact of new data tools and approaches on new program decisions Programs launched faster to meet needs of students & potential employers Curriculum alignment process pilot Employers & academic leaders need faster, more scalable ways to work together to align curriculum Test impact of real time job data & cloud-based employer feedback tools on curriculum alignment decisions Aligned curriculum & better prepared graduates Career planning process pilot Career counselors need better tools for helping their clients understand the labor market & their career/ed options Test impact of real time job data and career/ed data on student & job seeker decisions More students & job seekers pursuing high demand jobs Employer advisory process pilot Employers & academic leaders want employer advisory meetings to be more data-driven & strategic w/ more engagement between mtgs. Test impact of new data tools, surveys, and collaboration tools on curriculum advisory decisions Higher impact employer advisory meetings leading to aligned programs & prepared graduates Impact

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 18 Situation # 1 Youve been asked to join the employer advisory committee of a local technical college to help them improve the quality of their manufacturing-related programs The day before the meeting they tell you theyd like you to tell them what production-related manufacturing jobs are in demand You can either share your opinion based on what youve heard from HR & from your peers or Source: Itasca workforce alignment team - Confidential and preliminary not for distribution

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 19 you could discuss data listing the top 20 production-related jobs with the most job postings over the last 4 months & their growth rate vs. last year Top 20 manufacturing production-related jobs w/ most postings over the last 4 months Number of unique online job postings per occupation between 6/17/2013 and 10/15/2013 in Minnesota Occupations First-Line Supervisors of Production & Operating Workers Machinists Helpers--Production Workers Printing Press Operators Computer-Controlled Machine Tool Operators, Metal and Plastic Inspectors, Testers, Sorters, Samplers, and Weighers Welders, Cutters, and Welder Fitters Packaging and Filling Machine Operators and Tenders Electrical and Electronic Equipment Assemblers Team Assemblers Cutting, Punching, & Press Machine Setters, Operators, & Tenders Stationary Engineers and Boiler Operators Assemblers and Fabricators, All Other Molding, Coremaking, & Casting Machine Setters, Operators, & Tenders Sewing Machine Operators Cabinetmakers and Bench Carpenters Production Workers, All Other Tool and Die Makers Print Binding and Finishing Workers Coating, Painting, and Spraying Machine Setters, Operators, and Tenders % change in # of job postings % change vs same 4 months last year Source: Help Wanted Online (HWOL) Part of Wanted Analytics, Itasca workforce alignment team - Confidential and preliminary not for distribution Postings 807 190 172 109 93 77 71 63 59 40 35 33 32 25 22 19 18 17 14

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 20 Situation # 2 When you show up at the meeting, they ask you what skills they should focus on developing in their graduates if they want to target skills that will be useful in a wide variety of production roles. They also want to know what certifications are most valuable You know your answers to these questions, but the institution generates the following report to show that you are not the only one looking for these skills and certifications Source: Itasca workforce alignment team - Confidential and preliminary not for distribution

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 21 Although some production-related roles require certifications, most job postings focus on specific hard & soft skills Top 20 skills for production-related roles in Minnesota # of times skill mentioned in job posting Hard & Soft Skills Operations planning Detail oriented Oral and written communication skills Problem solving Troubleshooting Self-starting / Self-motivated Lean Manufacturing Quality control Blueprints Work independently Good Manufacturing Practice Quality Systems Microsoft Office Process Improvement Dependability Team-oriented, teamwork Preventative maintenance inspections Medical devices Strong leadership skills Organizational skills Mentions 452 436 404 331 243 213 200 186 181 165 164 158 150 129 128 120 108 106 102 89 Certifications Food safety programs Occupational Safety & Health Admin Certification High Capacity Fossil Fuel Fired Plant (Boiler) Operator Material Handling Equipment Forklift certification First Aid certification Science of Baking course Certified Plant Supervisor Six Sigma Green Belt American Production and Inventory Control Society Design for Manufacturability and Assembly National Career Readiness Certificate Six Sigma certification Mining Safety & Health Administration Certification Medical Device Directive Certification Mechanical Inspector Certified Welder Technical Supervisor Automated External Defibrillator Contact Quality Assessment Mentions 156 130 37 33 27 19 13 12 10 9 7 7 7 5 4 4 4 4 3 3 Top 20 certifications for production-related roles in Minnesota # of times skill mentioned in job posting Source: Help Wanted Online (HWOL) Part of Wanted Analytics, Itasca workforce alignment team - Confidential and preliminary not for distribution

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 22 Situation # 3 During the meeting, they are really interested in the first line supervisor role since theres so much demand, however, they want to make sure this years demand isnt an anomaly Luckily, since youre part of an Itasca pilot, you have access this information to add to the discussion Source: Itasca workforce alignment team - Confidential and preliminary not for distribution

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 23 Total monthly postings for first-line supervisors Number of unique online job postings between 6/17/2013 and 10/15/2013 The number of job postings for first line supervisors in Minnesota has grown by 40% per year for the last four years 40% CAGR Source: Help Wanted Online (HWOL) Part of Wanted Analytics, Itasca workforce alignment team - Confidential and preliminary not for distribution

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 24 Situation # 4 Now the school is working to align the curriculum for first-line supervisors with the needs of employers in the region. You (and the other employers on the advisory group) connected some of the school faculty to your best first line supervisors and their managers, who logged into to web-based system to quickly update a list of detailed work activities to help the professors know exactly what first line supervisor students needed to learn how to do. The faculty then uploaded the learning objectives from their existing classes to see how well their courses were aligned with your needs. When you showed up to meet with the professors, they showed you this report Source: Itasca workforce alignment team - Confidential and preliminary not for distribution

Doc ID Last Modified 5/27/2014 4:49 PM Central Standard Time Printed 5/14/2014 2:31 PM Central Standard Time 25 The goodness of fit report highlights some areas to address to make sure our content is focused on the highest value, most relevant topics Sample Degree Program match of learning objectives to skill requirements ILLUSTRATIVE for first line supervisors of production workers in MN (SOC: 51-1011, 11-3051)

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CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission of McKinsey & Company or the Itasca Project is strictly prohibited Overview: