Educating the workforce = strategic advantage?

5 12 2007

Yesterday I mentioned the move toward global government investment in education as a means to assume leadership status and to remain competitive in the future.  Link

Are individual companies dedicating resources for the education of their work force in order to insure future success?

There are a multitude of options available to the employer and employee in order to increase knowledge;  graduate degree programs, continuing education courses, specific industry training, seminars, conferences, short courses, books, magazines, blogs, the Internet, mentoring and travel.

How many formal or informal programs are in place at your workplace for employees to increase their knowledge?

Formal programs might include subsidies, grants, loans or co-participation in the employees education costs.  They might be specific courses run by consultants or experts, focused on improving specific skills.

Formal programs also include the participation in seminars, workshops, short-courses and other short term events.  They provide opportunities for networking, information, motivation and even a “breath of fresh air” from day to day operations.

How much money and time are set aside in your business for these education events yearly?   Why?

Who determines which events are important, and is there an evaluation as to which events provided valuable material and concrete results to the company?

Mentoring programs also provide opportunities to pass on knowledge, explore and share ideas in a “non hostile environment” and create valuable internal networks.
Informal programs for learning would include providing books or magazine subscriptions to industry press,  monitoring of industry blogs and the Internet for news and trends, attendance at trade shows and business travel.  These provide opportunities to receive new information, create dialogue, learn about trends and tendencies that are or will influence the business.

After any “educational” event, is there a formal feedback program that asks the employee “how can we implement this in our company” Link?   There is room for improvement here.

Will the continuing education of their workforce result in a more competitive future for the company, or will business always be able to “purchase” top talent in the marketplace without having to invest in education?

Related LinksSerendipity as part of business development

Maximize the impact of business conferences, seminars and special events in your organization

The future of our entry level workforce, gloomy

Our future depends on education





Our future depends on education

4 12 2007

Over the past months I have noticed a new trend among forward thinking governments.

Massive investment in education as a tool to increase their advantage in the world economy.

The trend is on supporting education, and countries are lining up and investing in education to insure they are poised to take advantage of the future.

Read this excerpt from Value Driven by Geoff Colvin in FORTUNE.

“We’ve known for a long time that this day was coming, and now it’s here: Countries are finally realizing that their future prosperity depends not on natural resources or even on financial capital, but on human capital. Companies have been battling for years to attract and keep the best people. Now countries are engaging in the same fight”

Read the entire article here: The battle for brainpower.

For years the USA, Europe and Japan had the money, universities and jobs that attracted talent, and paid for it.

These countries are filled with national and imported global talent, and the benefits can be measured in dollars and cents, Gross National Product, number of patents, and technological leadership.

Things are changing.

What happens when this imported talent stays home?

The ability to attract or retain top talent in a country will result in more patents, more and better processes and products.

The overall increase in education in a country plus the import of talented people, will provide huge economic benefits to a country.

Future economic growth, it’s not about cheap labor anymore.





Top states for business in Mexico – World Bank Report 2007

17 11 2006

I highly recommend that you download and read the Doing Business in Mexico 2007 report, released on November 15, 2006.

For anyone currently doing business in Mexico, or thinking about doing business in Mexico, this is a must read.

The World Bank Group has announced that “Doing business became easier in many Mexican states in 2005-2006, according to the new Doing Business in Mexico 2007 report, released today in Mexico City. The report finds that some states compare well with the best of the world, while others need much reform to become globally competitive.” – November 15, 2006

Quick results of the top ten Mexican states based upon the factors of; starting a business, registering property, obtaining credit, and enforcing a contract include:

  1. Aguascalientes, Aguascalientes (Easiest)
  2. Guanajuato, Celaya
  3. Nuevo Leon, Monterrey
  4. Sonora, Hermosillo
  5. Campeche, Campeche
  6. Zacatecas, Zacatecas
  7. Queretaro, Queretaro
  8. Michoacan, Morelia
  9. Sinaloa, Culiacan
  10. Mexico City (Most difficult)

A full listing of all the 31 Mexican states is available in the report.

Excerpt from the report: “If you were to open a new business in Mexico City, the start-up procedures would take 27 days on average, 8 days fewer than in Shanghai. If you decided to open a business in Guanajuato or Aguascalientes, you would have to wait 12 days—only one day longer than your competitor in Amsterdam. But if you needed to take a customer to court for a simple debt default in Guanajuato, resolving the dispute would take 304 days—far longer than the 217 days it takes in Dublin,1 but significantly shorter than in Baja California Sur where it takes 581 days. These examples illustrate two patterns. First, some Mexican states compare well with the best in the world. Second, many states need much reform to become globally competitive.”

Related Links

Press release on Doing Business in Mexico 2007 (PDF, 75KB)

Doing Business in Mexico 2007 (PDF, 1.26MB)

World Bank Report – Doing Business in Mexico 2005





Sourcing and supply chain strategy – Mexico

16 11 2006

Purchasing from Mexico and Mexican suppliers?

Don Gringo at Catemaco News and Commentary brought these items to our attention.

Sourcing in Mexico gets easier.  The article points out that doing business with Mexico is easier than in the past.

  • The proximity of Mexico to the US markets impacts communication, logistics, costs and time factors.
  • Mexico has a history of dealing with the US, and are familiar with competitive manufacturing techniques.
  • Relationships are critical to success.
  • Beware of stereotypes.
  • Take the time to find the “right” partner.
  • Do’s and don’ts for doing business in Mexico

Does your supply chain strategy include Mexico?  It should.  Al Brown president of SupplyMex writes that Mexico offers:

  • Logistics infrastructure, highways, rail and port system that has been improved over the past 10 years.
  • Free trade agreements with 42 countries.
  • Global production and quality standards.
  • Stable political and economic environment.
  • Skilled workforce.

Thanks Don.
Related Links

Purchasing.com

Why you should pay attention to free-trade treaties 

Maquiladoras in Mexico

Industrial and Business Parks in Mexico





World Corruption Perception Index 2006 – Transparency International

7 11 2006

Interesting look at perceived corruption worldwide.

Transparency International has released their 2006 index of corruption perception on November 6, 2006.

Mexico lands at number 70 on the list, which puts it close to the middle of the pack out of a total of 163 countries.

Since 1995, Transparency International has published an annual Index of perception of corruption ordering the countries of the world according to “the degree to which corruption is perceived to exist among public officials and politicians“. The organization defines corruption as “the abuse of public office for private gain. ” – excerpt from Wikipedia Corruption Perception Index.

As this index is based on polls, the results are subjective and are less reliable for countries with fewer sources. Also, what is legally defined, or perceived, to be corruption differs between jurisdictions: a political donation legal in some jurisdiction may be illegal in another; a matter viewed as acceptable tipping in one country may be viewed as bribery in another. Thus the poll results must be understood quite specifically as measuring public perception rather than being an objective measure of corruption.

Statistics like this are necessarily imprecise; statistics from different years are not necessarily comparable.” – Wikipedia Corruption Perception Index.

Related Links

Internet Center for Corruption Research

Corruption Perception Index – 2006 (EXCEL)

Transparency International

Wikipedia





Mexico manufacturing, US inventories and safety stock

21 10 2006

Manufacturers are returning to Mexico after “experimenting” in the Asia Pacific region. Some of the big reasons for this return are ; to reduce time to market, eliminate the financial costs of inventories in transit, lower the logistics costs, and to strengthen the supply chain by moving closer to just-in-time deliveries.

But moving to Mexico isn’t going to solve all the problems.

A September 2006 article in CFO magazine points out how US businesses are increasing safety stocks “just in case”. Delayed in the USA The article points out how supply chain disruptions are being provoked by an increasingly saturated US highway system and bottlenecks in deepwater ports and railyards.

The good news is that Mexico is close to the USA, a truckload of goods can leave any point in Mexico and arrive at the US destination in as little as 4-5 days. The railyards and new multimodal Interior Port in Guanajuato, Mexico allow manufacturers to establish production facilities in the interior of the country. Exporters can now clear customs and load the sealed container onto the rail-car at the new (2006) high capacity Customs port located in the geographic center of Mexico.

The bad news is that unless the US begins to upgrade their highway, port and rail facilities, supply chain managers in the US will be buying and storing higher levels of inventory to assure continuity of operations, “just in case”.

Related Links

Delayed in the USA – Supply Chain

Industrial and Business Parks in Mexico

AMPIP Mexican Association of Industrial and Business Parks





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”