| | Assistant Secretary for Economic Development David A. Sampson Remarks - Department of Labor Region 1 Conference October 26, 2001 | Back |
| Good morning. Thank you Ms. Shea for your kind and gracious introduction. It is a genuine pleasure to be with you today to discuss how we can better link economic development and workforce development strategies and efforts into a seamless and complimentary system. The need for this linkage was great when we were enjoying a robust economy led by a strong technology sector and marked by historic low unemployment rates. But linking workforce development and economic development strategies is equally, if not more important in this time of economic recovery.It is an honor to serve as President Bush's Assistant Secretary of Commerce for Economic Development. The Economic Development Administration (EDA) at Commerce is working hard to fulfill President Bush's agenda to leave no geographic area or demographic sector of our nation behind when it comes to achieving the American dream.Our mission at Commerce's Economic Development Administration is to help our partners across the nation (states, regions, and communities) create wealth and minimize poverty by promoting a favorable business environment to attract private capital investments and high-skill/high-wage jobs through world-class capacity building, planning, infrastructure investments, research grants and strategic initiatives.I am passionate about economic and workforce development as is Commerce Secretary Don Evans - a man who has spent his entire career in the private sector and who knows what it is like to risk capital and create jobs. Economic development supports two important public policy objectives: creating wealth and minimizing poverty. The creation of wealth enables people to be economically self-sufficient and provides the resources needed for building safe, healthy, convenient and attractive communities in which people want to live, work, and raise their families. Minimizing poverty is important because poverty is not only de-humanizing, it is extremely costly in terms of underutilized human resources, welfare transfer payments, soaring public healthcare costs, crime and declining neighborhoods that lose their value. Thus, the public sector has a legitimate interest in supporting efforts, and strategies to bring economic opportunity to all segments of our society.President Bush has said, "Washington needs to be a results oriented world." To that end, the nation's economic development and workforce development programs need to be results oriented.In order to produce results we must first clearly define what we mean by economic development and workforce development. Absent a clear definition and destination, talk about results is meaningless.Economic development is the intentional process of finding, sustaining, and capitalizing upon locational advantage to create wealth and minimize poverty. When the private sector invests capital to produce goods and services and increase productivity, the demand for high-skill/high-wage jobs goes up as well.Workforce development is the intentional process of strengthening the localized talent pool of workers to match private sector investments in technology, capital, and product improvement. The mission of workforce development initiatives is to connect job seekers with job providers; and to connect job seekers and job providers with education and training providers in order to continuously update the skill level of employees.Understood in these terms, the nexus between economic development and workforce development becomes not only clear, but inseparable.The challenge we are faced with is how to create more career opportunities for workers of all skill levels and a ready pipeline of quality workers to meet employers' immediate and long-term needs. From a public policy perspective, the stakes in education and workforce development for this country are high: "The illiterate of the 21st century will not be those who cannot read, but those who cannot learn."The economy of the 21st century is driving the need for more academically rigorous, flexible, and nimble education and workforce development systems. The economy of the 21st century is based on high productivity, rapid technological change, deregulation and market liberalization, the global marketplace and the mobility of capital and labor.Beginning about 1983, the U.S. experienced a "Skill Biased Technology" change. Technology has been the key to U.S. economic growth over the past decade. As a result, the workforce has changed. High-skill jobs have dramatically increased while low-skill jobs declined.This revolution has dramatically increased the value of skill and knowledge in the economy since 1983. Today, high-skill jobs pay 80% more than non-skilled jobs.Thus, the basic equation in today's economy is:"KNOWLEDGE EQUALS VALUE AND WEALTH."Knowledge and skills will have increasing value in the 21st century; thus we need to develop strategies to expand access to knowledge in ways that are faster, better, cheaper, and that are continuing in nature.The critical component to build this kind of workforce development systems is quite simply…LEADERSHIP. The role of a leader is:- To Define Reality: and,
- Provide Hope
Is there a place for leadership in a system governed by law and regulations? I believe the answer is yes. The key objective of leadership in the workforce development system, as I see it is to move from a culture of compliance to a culture of performance.In order to do this we must first understand and fulfill the purpose of leadership in four key areas:- Reading the Compass
- Setting the Direction
- Moving from Strategy to Action
- Rallying the Troops
Work of Leadership - Reading the CompassWhen I talk about reading the compass I mean that we as leaders must always concentrate on the broad view and the central features of the problem at hand. As Winston Churchill said "It is a good thing to stand away from the canvass from time to time and take a full view of the picture." To read the compass you must first understand your environment. In workforce development that means that you must have a systems perspective, adopt a strategic approach to your work, and be clear about the difference between strategy and compliance.Systems thinking in contrast to traditional analysis focuses on how the thing being studied interacts with other elements of the system. It is a very effective approach in dealing with the most difficult types of problems, including those involving complex issues, helping many actors see the big picture and not just their part in it. The workforce development system is complex and comprised of many actors at the federal, state, and local level. In recent years efforts have been focused on creating a system rather than a collection of independent services and initiatives. It therefore becomes very important that we change our way of thinking and analyzing accordingly. A systems perspective sets the stage for a strategic approach.A strategic approach is not just the development of a strategic plan "document." It is a way of thinking, a mindset that guides how you approach your work. Strategic thinking creates an organizational vision and mission and develops a blue print for achieving them. In other words, strategic thinking asks questions that lead to a meaningful dialogue such as, What are we trying to create? What is the environment in which we will achieve this success? What is the process by which we will achieve success?Strategic thinking leads to the development of shared vision. Having a shared is important for at least four major reasons. First, it focuses our limited resources. Second, it tells us what to say "No" to. Third, it keeps down competing agendas. And fourth, it explains why we act the way we do.In reading the compass leaders must be clear about the difference between compliance and strategy. Compliance is the cost of doing business with the federal government. It is the consequence of receiving public money. But we are not in the business of compliance. Compliance defines the limits within which you must operate. But within those limits you have multiple options and multiple possibilities for operation. Compliance planning and compliance objectives are part of strategic planning and strategic options. But they are not strategy.Leaders set the stage for success by understanding that the environment in workforce development today requires a systems perspective and a strategic approach to managing what we know to achieve results.The Work of Leadership - Set the DirectionThere is no substitute for vision. As Theodore Hesburgh has said "The very essence of leadership is that you have a vision. It's got to be a vision you articulate clearly and forcefully on every occasion. You can't blow an uncertain trumpet." As leaders in the workforce development system, you must first have a clear understanding of your purpose and responsibilities. Know "your reality," the mix of strategic versus operational responsibilities. Develop a clear vision of how you can best balance and shape reality to focus on issues of strategic importance to the workforce development system. I go back to what I said at the very beginning, that the essential role of the leader is to define reality and provide hope.You as leaders must set the boundaries and determine the non-negotiables of your system. For me, some of those boundaries and non-negotiables include operating according to appropriate law and regulation at the state and federal level; collaboration with partners at the federal, state and local level; and achieving excellence in relationships, processes analysis and outcomes.I would urge you to seek counsel and feedback from key stakeholders and partners. When, then Governor Bush first appointed me as chair of the Texas Workforce Investment Board, I made it my priority to meet with all the key stakeholders of the Texas Workforce Development System, including the Governor's staff, the chairs of the appropriate state legislative committees and their staff; as well as the executive directors of our state partner agencies. They clearly articulated the role they expected me and the State Workforce Investment Board to play as an early warning system and a think tank on workforce development issues. They looked to us to provide strategic vision and coordination among all the state partners. And since we had no turf to protect, they looked to us to provide an objective third party analysis as to the effectiveness of the state's system.That feedback from key stakeholders and partners helped us to distill our responsibilities into four key strategic functions: - System planning,
- System evaluation,
- System review; and
- System research and development.
Let me recap the work of leadership: It is to first read the compass, second, set the direction and third -The Work of Leadership - Moving from Strategy to ActionIn my view, the true "Person of the 20th Century" was Winston Churchill. He said, "Decisiveness depends on the person at the top. Every decision must be forced to a clear cut issue." The leader "Must continually drive the vast machine forward at its utmost speed. To lose momentum is not merely to stop but to fall."As a leader in the workforce development system it is important for you to know who does what, to have a clear delineation of responsibilities. Develop a work plan to put strategy into action. Identify outcomes for the year. Organize by key functions (planning, evaluation, review and research) that are consistent with your priorities.When I was chair of the Texas Workforce Investment Board, I used a meeting plan to maintain a strategic focus and to enable effective work. We used meetings as a learning strategy. The danger of the board is often to get caught up in operational detail. What I tried to do was to determine key strategic issues for the year and bring in leading thinkers as presenters for the benefit, not only of the board, but for partner agencies and key stakeholders who are so often caught up in operational detail that they don't see things from the system perspective, the 30,000 feet level. Above all, the work of the board should maintain a purposeful focus on the strategic. Meetings should be a tool to keep the focus on issues of strategic importance and to shape the context in which all actions are considered. I believe that a yearly meeting plan/timeline that corresponds with the work plan will keep board members focused on the strategic issues and on the outcomes. If state and local workforce development boards are to fulfill their potential, meaningful participation of board members in key decisions and actions is critical.Delineating responsibilities, having a work plan and implementing a meeting plan will help avoid the trap of getting mired in operational detail and will help consistently articulate strategic priorities.To recap the work of leadership is to first, read the compass, set the direction, move from strategy to action and finallyThe Work of Leadership - Rallying the Troops.Theodore Roosevelt once said "The best executive is one who has sense enough to pick talented people to do what he wants them to do and self-restraint enough to keep from meddling with them while they do it."As leaders read the compass, set the direction, and organize activities to put strategy into action they must continually endeavor to create common understanding/cause, sensitize players to priorities and create urgency for movement. An effective leader is a change agent that encourages, rewards innovations, maintains changes and discourages the status quo.The challenging economic times that lie ahead of us demand that we create a dynamic organizational culture by recognizing that leadership is a shared function. Shared leadership organizes and rallies the entire team to move toward the vision and allows the board to organize its work to accomplish the mission. An effective leader encourages and utilizes the leadership capabilities of all members of the board.Summary and Closing ThoughtsLet me return to the initial question about the importance of leadership in an environment governed by rule and regulation. Leaders in workforce development must create a culture of performance. That has never been more critical than it is now. We must focus on results and the only acceptable result is a pipeline of skilled workers - a world-class knowledge supply chain. The stakes are high. The result is global competiveness, a strong economy and a high quality of living for our citizens - or not.
As one person has said "In communities where men build ships for their own sons to fish or fight from, quality is never a problem." Ladies and gentlemen, as leaders of America's workforce development system you are building the ships from which your sons and daughters will fish or fight from. Therefore, quality is not optional.Let me leave you with a few closing thoughts on leadership. It is not enough to simply learn the job of being a leader in today's workforce system - define it. "Do not become the passive matrix upon which others impose their designs," Said Winston Churchill. Always look for opportunities to advance bold, new initiatives. Incremental change and marginal improvements in the workforce development system will not enable America to maintain its economic strength. Therefore, the advice of Winston Churchill is very appropriate to us. "Do not fritter away your energies on small schemes."And finally, never underestimate the critical role that you as leaders play. General H. Norman Schwarzkopf said, "Leadership is a combination of strategy and character. If you must be without one, be without the strategy."Thank you very much. |
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