The future of our entry level workforce – gloomy

19 10 2006

Will our future entry level workforce be competitive and competent?

Are we ready to build a nation full of entrepreneurs and world class workers?

I highly recommend you read the study published by the The Conference Board, Corporate Voices for Working Families, the Partnership for 21st Century Skills, and the Society for Human Resource Management, entitled:

Are They Really Ready To Work? Employers’ Perspectives on the Basic Knowledge and Applied Skills of New Entrants to the 21st Century U.S. Workforce”

According to this study of 431 companies in the US, representing over 2 million employees in a variety of industries and geographic areas, the future is bleak.

“The future U.S. workforce is here—and it is woefully ill-prepared for the demands of today’s (and tomorrow’s) workplace.”

The basic skills and knowledge identified and considered to be very important elements for future employees include:

  • English Language (spoken)
  • Government/Economics
  • Reading Comprehension (in English)
  • Humanities/Arts
  • Writing in English (grammar, spelling, etc.)
  • Foreign Languages
  • Mathematics History/Geography
  • Science

The applied skills, which are increasing in importance as criteria for success in the future:

  • Critical Thinking/Problem Solving—Exercise sound reasoning and analytical thinking; use knowledge, facts, and data to solve workplace problems; apply math and science concepts to problem solving.
  • Oral Communications—Articulate thoughts, ideas clearly and effectively; have public speaking skills.
  • Written Communications—Write memos, letters and complex technical reports clearly and effectively.
  • Teamwork/Collaboration—Build collaborative relationships with colleagues and customers; be able to work with diverse teams, negotiate and manage conflicts.
  • Diversity—Learn from and work collaboratively with individuals representing diverse cultures, races, ages, gender, religions, lifestyles, and viewpoints.
  • Information Technology Application—Select and use appropriate technology to accomplish a given task, apply computing skills to problem-solving.
  • Leadership—Leverage the strengths of others to achieve common goals; use interpersonal skills to coach and develop others.
  • Creativity/Innovation—Demonstrate originality and inventiveness in work; communicate new ideas to others; integrate knowledge across different disciplines.
  • Lifelong Learning/Self Direction—Be able to continuously acquire new knowledge and skills; monitor one’s own learning needs; be able to learn from one’s mistakes.
  • Professionalism/Work Ethic—Demonstrate personal accountability, effective work habits, e.g., punctuality, working productively with others, and time and workload management.
  • Ethics/Social Responsibility—Demonstrate integrity and ethical behavior; act responsibly with the interests of the larger community in mind.

Excepts from the study:”Business leaders must take an active role in outlining the kinds of skills we need from our employees for our companies and economy to thrive.”

“As business leaders, we must also play a role in creating opportunities for young people to obtain the skills they need. Businesses can partner with schools and other organizations that work with young people to provide internships, job shadowing programs and summer jobs. Businesses can encourage their employees to serve as mentors and tutors. Businesses can invest in programs at the local and national level that have demonstrated their ability to improve outcomes for young people.
Finally, business leaders can use their expertise in innovation and management to help identify
new and creative solutions.”

We assume that our schools are producing graduates with fundamental business abilities, why isn’t it happening?

Are we going to accept that the training of the future workforce is in the hands of private business, and not the educational system?

What is the cost to business when new employees must be given remedial training, just to get them up to entry level?

What is your organization doing right now to ensure, or create talent for the future?

Read the study, pass it around the office and makes sure the boss and human resource people get copies.

This is no longer someone elses’s problem.

“ The numbers don’t bode well for the future—the future of our workforce. It is in our interest to help solve the problem. And business has the capacity to help solve the problem by partnering with education and community leaders to create opportunities for young people to practice the skills they need to be successful.” – Bill Shore, Director, U.S. Community Partners, GlaxoSmithKline

Related Links

The Conference Board: Are they really ready for work?

Are they really ready to work (PDF)

Most young people entering the US workforce lack critical skills essential for success

Young Workforce is “Ill-Prepared”

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Global competitiveness 2006 – Mexico and China

11 10 2006

The Global Competitiveness Report 2006 – 2007 (Link), released by the World Economic Forum on September 26, 2006 has some statistics and rankings of interest if your organization is expanding into new international markets.

Based upon a mix of economic factors, information and the opinions of international business leaders, the report lists how competitive nations are in relation to one another, and compares this to last years ranking.

Mexico has clicked up a notch from 59 in 2005 to 58 in 2006.

  • Mexico’s ranking has remained broadly stable, moving up one place to 58. The country’s somewhat uneven performance over the various pillars of the GCI is shown by relatively high scores for health and primary education, goods’ market efficiency and selected components of technological readiness, e.g., FDI and technology transfer, no doubt reflecting the close links of the Mexican market to the US in the context of NAFTA. However, this is offset by the same institutional weaknesses as are prevalent in the rest of Latin America.”

China is the big surprise, dropping 6 points this year (48 in 2005, 54 in 2006).

  • “On the positive side, China’s buoyant growth rates coupled with low inflation, one of the highest savings rates in the world and manageable levels of public debt have boosted China’s ranking on the macroeconomy pillar of the GCI to 6th place – an excellent result. However, a number of structural weaknesses need to be addressed, including in the largely state-controlled banking sector. Levels of financial intermediation are low and the state has had to intervene from time to time to mitigate the adverse effects of a large, non-performing loan portfolio. China has low penetration rates for the latest technologies (mobile telephones, Internet, personal computers), and secondary and tertiary school enrollment rates are still low by international standards. By far the most worrisome development is a marked drop in the quality of the institutional environment, as witnessed by the steep fall in rankings from 60 to 80 in 2006, with poor results across all 15 institutional indicators, and spanning both public and private institutions.”

Related Links

World Economic Forum

Institute for Strategy and Competitiveness

U.S. tops world competitiveness index 2006





What can we learn from the piracy business model

10 10 2006

Here is a interesting way to view, prepare for and compete against businesses copying and pirating your content or products.

Piracy is a business model. Anne Sweeney, co-chair of Disney Media Networks and president of Disney-ABC Television Group, announced during a keynote address at MIPCOM. While her focus was on the pirating of media content, the same message applies for manufactured goods.

“It exists to serve a need in the market….. Pirates compete the same way we do – through quality, price and availability. We don’t like the model but we realize it’s competitive enough to make it a major competitor going forward.

What’s so amazing about this?

Taking the piracy is a business model approach allows us to analyze the business model and how it is acting or reacting to the economic fundamentals in the market.

Instead of locking up our company secrets and seeking punishments for the pirates, we can analyze why and where our “competition” is taking advantage of us in order to strengthen and modify our business model.

None of this changes the actual situation. But it might change business strategies and planning when you realize they are competitors and they are here to stay.

What are the advantages of being a pirate, and the disadvantages?

Why are there opportunities for them? What should I be doing that I’m not?

How can I change my organization to take back the market from the pirates?

Once weaknesses in the piracy business model are identified they can be exploited. When strengths are discovered, they can be integrated into our own business model.

The fight against piracy should begin with a focused analysis of the market environment, existing business models and new strategies on how to adapt to the changing market conditions and exploit them to your advantage.

We can stop focusing on the individual “pirates” and their control or capture, and move toward competing intelligently against them.

Related Links

The easy way

The power of something extra

Netribution – Disney Co-Chair recognizes ‘piracy is a business model’

Boing Boing – Disney exec: Piracy is just a business model

@MIPCOM Piracy is a business model


 





The power of something extra

5 10 2006

Here is a simple but powerful rule – always give people more that what they expect to get.” – Nelson Boswell

What defines an exceptional leader, a great manager, a super business, or remarkable experience? Something extra.

There are two words (one French and the other Spanish) that convey and represent the concept of something extra, lagniappe and pilon.

Lagniappe (hear it) is the word commonly used in Southern Louisiana and Mississippi. It’s defined by the American Heritage Dictionary as an extra or unexpected gift or benefit.

Pilon is the Spanish word used in the southern US and Mexico to describe a gratuity given by tradesmen to customers settling their accounts, it’s something extra, and not expected.

Incorporating something extra in our actions, results and as a business philosophy can be incredibly powerful.

Something extra:

  • forces creativity and innovation.
  • demands clear understanding what is expected of us by others.
  • focuses our attention of adding value, and not on cutting costs.
  • is positive.
  • is rewarded with good will and positive reactions.
  • will lead to continual improvement.
  • is fundamental to continued success.

Something extra is all about the little things and details.

Something extra is not just something “free”, it must arrive without anticipation, unexpectedly in order for it to be special and make an impact.

Something extra allows you to surprise the customer.

Something extra will make think about your results and expectations. It will make the difference between simple compliance and outstanding results.

Something extra will make you and your results different from all the others.

Embracing something extra and applying it on a daily basis, will make you great.

Giving something extra is not a difficult task. It’s all about applying small acts of innovation and creativity to your results, especially for routine and day-to-day tasks.

The power of something extra can change your life, your products, your processes and how others perceive you.

“If you want to be creative in your company, your career, your life, all it takes is one easy step… the extra one. When you encounter a familiar plan, you just ask one question: What ELSE could we do?” Dale Dauten

Related Links

Motivation – Heroic moments

What defines an exceptional leader





Why you should pay attention to free trade treaties

27 09 2006

Globalization, transnational companies, global sourcing and outsourcing, free trade, do any of these terms sound familiar?

Obtaining products and raw materials for the lowest price possible is a fundamental concept in business. Today organizations are looking for manufacturers and locations worldwide where they can find lower costs of production in order to remain competitive.

Combine the factors of: quality control, low cost production, logistics costs, and the time involved to get the product to market from the factory, and you understand the challenge of doing business and sourcing products in today’s global economy.

To truly determine the final cost of the product, all these factors must be calculated. This will determine which country offers the best competitive advantage. Make sure you are analyzing any existing free trade agreements when you are seeking suppliers globally.

Free trade treaties between countries have a significant impact upon the final cost of goods. These free trade agreements eliminate the tariffs and taxes on imported and exported goods between the countries involved, depending upon their concentration or percentage of “local” or national raw materials (including labor), as specified in the free trade agreement.

Free trade agreements between countries are of great importance and value only if are exclusive and not accepted by all trading countries. The more free trade is embraced by the international community (through treaties or elimination of import and export tariffs) the less impact the current free trade agreements have in determining competitive advantages for a single country.

Here is a simple example of how the NAFTA (North American Free Trade Agreement) free trade treaty between Mexico and the USA, would favor the US supplier over a Chinese supplier.

Example of free trade agreeement competitive advantage:

US supplier to Mexico. If I want to purchase paint made by a US paint manufacturer and have it shipped to my warehouse in Mexico, my total cost to bring the goods to my warehouse in Mexico would be the cost of the paint, plus freight and customs clearing costs. There is no import tariff on this product due to the NAFTA free trade treaty. It would take 4 – 6 days to arrive in my warehouse in Mexico once the product has been shipped from the USA.

US paint $ 20.00 + Freight $ 4.00 + Customs $ 1.00 = $ 25.00 total cost of the US product in my warehouse in Mexico

Chinese supplier to Mexico. If I purchase the same product, from the same transnational company, but it is manufactured in China. Transportation time is 40 days from date product is shipped from China.

Chinese paint $14.00 + Freight $ 8.00 + Customs $ 1.00 + Import tariff (13% of CIF value) $ 2.86 = USD $ 25.86, total cost of the Chinese product in my warehouse in Mexico.

In this example the final cost of the product is $ .86 lower from the US supplier as compared to the Chinese supplier, despite a lower initial product cost. Factor in the financial cost and time required to move the product from the factory to my warehouse, and the lowest final cost in this case would clearly come from purchasing product from the US supplier.

Mexico’s aggressive free trade strategy

Since the 1990’s Mexico has bet heavily on international free trade agreements as a method to improve their competitive advantage and increase their manufacturing base and attract foreign investment.

Mexico has signed 11 existing free trade treaties and 2 complementary economic agreements with 42 countries. It is the only country in the world to have standing free trade agreements with North American and the European community.
The free trade agreements have greatly increased international competition (imports) in Mexico (good for the consumer).

Free trade agreements have allowed Mexican exports to increase and reach destinations and markets that were closed before due to tariffs and costs. There has been increased foreign investment from countries that desired to use Mexico’s free trade competitive advantage for international manufacturing and export projects.

The Mexican manufacturers and suppliers of the national Mexican market were given a “sink or swim” option. Virtually overnight (many of the treaties were phased in over a period of 3 – 10 years), their previous protected market was filled with imported goods (more competition, lower cost, higher quality).

Those that have survived the “invasion”, have had to improve their efficiency, quality and costs. Making them much more competitive in todays global economy.

Britannica’s Definition of free trade:

“Policy in which a government does not discriminate against imports or interfere with exports. A free-trade policy does not necessarily imply that the government abandons all control and taxation of imports and exports, but rather that it refrains from actions specifically designed to hinder international trade, such as tariff barriers, currency restrictions, and import quotas. The theoretical case for free trade is based on Adam Smith’s argument that the division of labour among countries leads to specialization, greater efficiency, and higher aggregate production. The way to foster such a division of labour, Smith believed, is to allow nations to make and sell whatever products can compete successfully in an international market.”

Related Links

Mexico and international free trade agreements