Moderator:

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11 WIRED for the New Economy
Moderator Mark Gorman MCR, Nortel Speakers Mi
chelle Cleveland, WIRED West Michigan Dr. James
Ware, Work Design Collaborative Dr. Charles
Grantham, Work Design Collaborative Len Pilon,
Herman Miller
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The Tri-plex
Muskegon
Grand Rapids
Holland
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60 Growth!
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A Natural Quality of Life
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The Flip Side
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Urban Sprawl
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A Region in Transition
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Whats Next?
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Economic Challenges In West Michigan

• Since March of 2001, the region has lost 27,100
  jobs, a decline of 4.6
• 90 of the regions job losses occurred in
  manufacturing.
• West Michigan is more than twice as dependent on
  manufacturing compared to the nation as a whole.
  22 of the workforce is in manufacturing.
• Between 2000 and 2004, real median income
  decreased in the region, and the poverty rate
  rose from 8.4 to 10.1.
• There are skill shortages for some growth sectors
  such as health care.
• The wages in growing industries are only 50 of
  the wage levels in declining industries.

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The Challenge of Regional Economic Innovation
Although global competition is typically seen as
a national challenge, the front lines of the
battlefield are regional where companies,
workers, researchers, entrepreneurs and
governments come together to create a competitive
advantage in the global economy. That advantage
stems from the prosperity-creating power of
innovation the ability to transform new ideas
and new knowledge into advanced, high-quality
products or services. (Source USDOL ETA WIRED
Request for Proposals)
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First and Second Generation WIRED Regions
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Workforce Innovations for the Innovation Economy

• OUTCOMES
• Economic diversification
• Job growth
• Income growth
• Higher education levels
• Continuous skill upgrading
• Life-long learning
• New business formation

• CHARACTERISTICS OF THE INNOVATION ECONOMY
• Globalized (the flat world)
• Rapid diffusion shorter product cycles
• Multi-disciplinary
• Technologically complex
• Requires high levels of collaboration
• Blurs traditional boundaries

• CURRENT SYTEM CHARACTERISTICS
• Low math, science and technology achievement
• Product-push
• Long development times
• Disconnections between work and learning
• Lack of provider integration
• Outdated credentialing system

• NEW SYSTEM PRINCIPLES
• Continuous innovation
• Compressed cycle times
• Customer-pull vs. product push
• Global awareness, global standards, global
  sourcing
• Integration of providers
• Integration of work and learning

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Purpose of the WIRED Initiative

• Transform workforce investment and education
  systems to support the skill requirements of the
  innovation economy
• More strategically integrate workforce
  development and economic development
• Focus on long-term systems change, not short term
  job training slots

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Purpose of WIRED West Michigan
The overall goal of WIRED West Michigan is to
develop and manage an innovations lab designed
to spawn a wide range of innovations in our
regional economic development, workforce
development and educational systems.
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Core Strategies

• Accelerate the development of innovation
  competencies in firms and individuals
• Connect K-12 learning to the real world and
  global competency standards
• Create portable performance-based credentialing
  suites used at scale in the region
• Develop employer collaboratives that rapidly
  disseminate best practices and effectively
  aggregate demand
• Develop a regional system for developing
  entrepreneurs and managing the enterprise
  development pipeline
• Implement strategies that retain and attract
  knowledge workers

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The Systems We Are Seeking To Change
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Seeding Innovation Throughout the System
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Summary of Innovations
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Summary of Innovations
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Workforce Innovations Lab Operating Design
WIRED POLICY COUNCIL Oversight of the Innovation
Process

• Current Innovation Portfolio
• Emerging Sector Analysis
• Global Supply Chain Analysis
• Economic Development Knowledge Workers
• InnovationWORKS
• STEM Innovation Network
• Manufacturing Skills Coop
• WorkKeys and Work-Based Learning
• Manufacturing Skills Standards
• Regional TEAM
• Health Care RSA
• West Michigan Entrepreneurial League System

INNOVATION PROCESS
SUSTAINABLE INNOVATIONS
1. Concept Definition
2. Business Planning
3. Testing Prototype
4. Production Launch
Managing the Innovation Portfolio

• WIRED Core Team
• WMSA Staff
• GVSU Fiscal Agent
• WIRED Advisors

• Innovation Teams
• Development of the innovation through the stages
• Hosting of the prototype
• Regional Advisory Groups

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Our Definition of A Social Innovation

• Performance Improvements
• It achieves improvements in the performance
  outcomes and reductions in the cost of outcomes.
  
• Financial Sustainability
• It is based on an economic model that is
  sustainable on existing resource availability and
  do not require excessive subsidies over extended
  time frames.
• Scalability
• The innovation can be expanded using a common set
  of core systems it is not context-dependent.

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Why Focus on Workforce Development?
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First, Some Context and a CommercialThe
Challenges Facing Business Today
Publication Date August 2007, by the American
Management Association
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What You Dont Know You Dont Know
Changes in Working Population, 2000 - 2050
Source U.S. Census Bureau, 2000
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What You Dont Know You Dont Know
Source Employment Policy Foundation and BLS data
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What You Dont Know You Dont Know
You need a Workforce Development Strategy NOW!!
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Reports from the FieldWorkforce Crisis - The
Shrinking Labor Pool

• Three Strategies
• Expand the pool
• Improve your company brand
• Raise productivity

Ken Dychtwald, et. al., Workforce Crisis How
to Beat the Coming Talent Shortage for Skills and
Talent, Harvard Business School Press, 2006.
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Reports from the FieldThe Educational System

• And
• Cant analyze news stories
• Cant balance a checkbook
• Dont understand basic documents

College Graduates Demand 18 million Supply 12
million
Daniel Pink., A Whole New Mind Why
Right-Brainers will Rule the Future, Riverhead
Trade Press, 2006.
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What Can Be Done?A Multidimensional Strategy is
Essential
1. Find and develop alternative sources of talent
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What Can Be Done?A Multidimensional Strategy is
Essential
2. Move from outsourcing to insourcing
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Think Regional, Act Regional
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The Corporate Facilities PerspectiveWhat
Environment Do You Want for Your Workforce?
This?
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The Corporate Facilities PerspectiveWhat
Environment Do You Want for Your Workforce?
Or This?
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What is a Remote Work Center?

• Ubiquitous presence of shared officespace and
  services
• A place to go to work.withoutgoing to work
• A facility and service operation
• marketed to corporations for their mobile
  professionals and remote workforce
• and to individuals and small businesses
• Built on successful business models of telework
  centers from the 1990s and customer care centers
  of today
• Its an entrepreneurial business, not a
  government grant program

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The WIRED West Michigan PerspectiveKnowledge
Workers and Economic Development

• Phase One
• Determine whether there is a business case for
  local investors to develop one or more Remote
  Work Centers as a means of attracting,
  supporting, and retaining talented knowledge
  workers.
• Phase Two
• If so, develop the market through a series of
  education and communication programs, as well as
  the preparation of business plan templates and a
  marketing toolkit for local work center sites.

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Potential Remote Work Centers in West Michigan
Newaygo
Muskegon
Ada
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Why Communities?
Daniel Pink., A Whole New Mind Why
Right-Brainers will Rule the Future, Riverhead
Trade Press, 2006.
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How WIRED Can Be Scaled Up
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If We May A Short Editorial

• Businesses need to work collaboratively with
  communities
• Failure to invest in growing social capital
  will produce failure over the long run
• remember the British Empire, the Roman Empire,
  etc.
• If you are focused on reducing cost per square
  foot you are digging in the wrong place
• Puzzles are never solved until all the pieces are
  put together
• Our core principle Move bits, not butts

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Workplace Innovations
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Can Workplaces Foster Innovation?

• Innovationthe heart of the knowledge
  economyis fundamentally social.
• Malcolm Gladwell, author of The Tipping Point

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What Do Organizations Need?

• Finding and Keeping Creative Workers
• workplaces that offer choice and variety
• Identity, Culture, Brand
• workplaces that adapt quickly as corporate
  cultures are created, negotiated, and changed
• create a collective sense of purpose
• build spaces that encourage partnership and
  collaboration

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What Do People Need?

• Need choice and variety in places to work, alone
  or in groups
• Need support for many forms of work
• Need to multitask, learning through networks
  and casual collaboration
• Need both connection and concentrationand the
  ability to adjust quickly the balance between the
  two

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New Office Landscape Planning

• Deliver Choice, Variety, Human Connections

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120-degree New Office Landscape
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Private Workspaces
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Collaborative Spaces
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Technology Support
EASY
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Back Office Services

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Learning and Development
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Social Networking
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Support Services
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Planning with a Holistic View
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Contact Information
Contact Information

• Nortel Networks
• www.nortel.com
• Mark Gorman
• Dallas, Texas
• 1 972.648.2714
• mgorman_at_nortel.com
• West Michigan Strategic Alliance
• www.wm-alliance.org
• Phil Rios, WIRED West Michigan Project Grand
  Rapids, Michigan
• 1 616.331.6968
• prios_at_wiredwestmi.org

• Work Design Collaborative, LLC
• www.thefutureofwork.net
• Charlie Grantham
• Prescott, Arizona
• 1 928.771.9138
• charlie_at_thefutureofwork.net
• Jim Ware
• Berkeley, California
• 1 510.558.1434
• jim_at_thefutureofwork.net
• Herman Miller, Inc.
• www.hermanmiller.com
• Len Pilon
• Zeeland, Michigan
• 1 616.654.3214
• len_pilon_at_hermanmiller.com