A two front battle: How governments can prevail in the fact of the global skills crisis

©2016 IBM Corporation1 3 January 2018
How governments can prevail in the fact of the global skills crisis
A two-front battle
Presenter’s Name | Marquis Cabrera, Global Leader of Digital Government Transformation
Presented to: Danish Ministry of Finance | November 2017

 Three forces are culminating in unprecedented global disruption:
– Rapid advancement of digital technologies;
– Fundamental disruption of industry value chains and business and operating models; and
– Expanding globalization, social commentary and engagement
 This disruption is impacting global skills in three ways:
– Demand for and types of skills required by leaders in both the public and private sectors are changing;
– Availability of skills in labor markets is uncertain; and
– Quality of skills is challenged
 While governments face many of the same skills-related challenges as the private sector, the implications are even greater as they
must fight this battle on two fronts:
– They struggle to develop and maintain workforce with the skills necessary to meet organizational mission requirements, and
– Government executives must also work with ecosystem partners to ensure their regional labor markets remain competitive
 Three factors continue to complicate the issue of skills globally:
– Complacency over the current state of skills;
– Overconfidence in current capabilities to address problems; and
– Disconnects between major ecosystem stakeholders
 If left unresolved, there is potential for severe implications for governments, industries, regional economies and individuals
 To address the global skills challenge, we suggest government leaders join forces with key ecosystem partners and embrace three
high-level strategies:
– Build and strengthen regional ecosystems;
– Prioritize and invest in proven, innovative solutions; and
– Enable and advocate for individual responsibility
Executive summary

1021
Asia Pacific
Western Europe
988
Japan
411
North America
967
Latin America
657
IBM surveyed more than 5,600 executives globally
across 47 countries
Geographical spread of respondents
Nordics
384
CEE
408
Middle East
440
Sample Size : 5,676
Africa
400

Respondents represent 18 industries, including 314
leaders of government organizations
Industry spread of respondents
5,676respondents
Automotive – 4%
Banking and Financial Markets – 6%
Chemicals and Petroleum – 4%
Consumer Products – 4%
Education – 18%
Electronics – 4%
Energy and Utilities – 4%
Government – 15%
Healthcare – 4%
Industrial Products – 4%
Information Technology Services – 4%
Insurance – 4%
Life Sciences/Pharmaceuticals – 4%
Media and Entertainment – 4%
Retail – 4%
Telecommunications – 4%
Transportation – 4%
Travel – 4%

Respondents have representation from four key roles
in the global skills ecosystem
Role of respondents
5,676
respondents
Industry – 64%
CEOs, CFOs, CIOs, CMOs, COOs, CHROs and Heads of
Innovation / Strategic Alliances
Education – 27%
Chancellors, Vice Chancellors, Presidents and Deans of Higher
Education Institutions; Leaders of Technical or Vocational
Schools or Colleges; and Corporate Learning Executives
Workforce Development / Employment Services – 4%
Senior Leaders and Executives from Public Employment Service
Agencies and Workforce Development Organizations
Labor / Workforce Policy – 4%
Government executives responsible for labor / workforce policy

©2016 IBM Corporation 3 January 20186
The gathering storm
State of readiness
Charting a new course
Table of contents

• Rapid advancement of digital technologies
• Fundamental disruption of industry value chains and business and operating models
• Increased globalization, social commentary and engagement
Three forces are culminating in unprecedented disruption

New digital technologies are fundamentally disrupting
the business landscape…
Source: Pursuit of relevance: How higher education remains viable in today’s dynamic world. IBM Institute for Business Value. June 2015.
Biotech
Nanotech
Advanced robotics
Cloud
Cognitive computing
Social
Mobile
3-D printing
Analytics
Advancements in analytics and mobile
allow retailers to track preferences and
tailor experiences
Micro technologies are simultaneously
increasing capacity and reducing size;
3-D printing transforms supply chains
Digitization of healthcare coupled with
mobile and analytics enables real time
health diagnostics and treatment
Traditional value chains are
transforming into mobility ecosystems,
redefining ownership and experience
Healthcare
Retail
Electronics
Automotive
ImpactNew and emerging technologies

…and government executives recognize the
disruptive nature of the digital era and the need for
change
75%
Traditional business models are
no longer sustainable
Partnering is essential to build needed
capabilities
78%
Source: Institute for Business Value 2016 global government executive survey (n=314)
Impact of digital reinvention…

Increased globalization has had significant global
economic, social and political implications
Sources: Multiple. See notes.
Trade Investment
46%
increase
Growth in merchandise trade as a % of
global GDP between 1990 and 2015
Growth in FDI inflows as a % of global GDP
between 1990 and 2015
199%
increase
Migration Connectivity
56%
increase
Growth of migrant stock in developed
regions between 1990 and 2015
Growth in number of Internet users between
2000 and 2015
668%
increase

Digitization is enabling a new phase of globalization
and economic growth
Source: Digital globalization: The new era of global flows. McKinsey Global Institute. February 2016.
Connectivity Participation
45xlarger
Growth in cross-border bandwidth
since 2005
Number of people globally that take part in
cross-border e-commerce
360million
Trade Economic benefit
12%
globally
Global goods trade conducted via
international e-commerce
Estimated impact of cross-border data flows to
global GDP
$2.8trillion

• Demand for and types of skills required by organizational leaders are changing
• Availability of skills in labor markets is uncertain
• Quality of skills is being challenged
This disruption is impacting global skills in three ways

Government leaders believe globalization, and
technology and industry changes will impact skills
Source: IBM Institute for Business Value 2016 Global Skills Study
100%
100%
100%
100%
100%
100%
78%
76%
68%
76%
75%
74%
Advances in industry-specific technologies
Changes in industry business and operating models
Advances in general technology
Expanded trade and global economic specialization
Changes in regulatory requirements
Economic globalization and changing competitive pressures
100%67%Artificial intelligence and cognitive computing
Factors impacting skills demand in the next 5 years

Government execs believe core STEM and basic
computer skills are most critical for the workforce
100%
100%
100%
100%
100%
100%
66%
66%
50%
56%
54%
52%
Basic computer and software / applications skills)
Ability to communicate effectively in a business context
Fundamental core skills around reading, writing and
arithmetic
Willingness to be flexible, agile and adaptable to change
Ability to work effectively in team environments
Technical core capabilities for science, technology,
engineering and mathematics (STEM)
100%46%Time management skills and the ability to prioritize
Most critical skills required for members of the workforce
100%37%Analytics skills with business acumen
100%24%Industry / occupation specific skills
Soft skillsTechnical and core skills

Leaders believe planned immigration and recent
graduates are positively impacting skilled labor
70%
60%
Immigrants resulting from planned
immigration policies / quotas
Influx of recent graduates and Millennials
entering the workforce
61%
68%
Factors positively impacting skilled labor QUALITY and AVAILABILITY
availabilityquality

Conversely, many are concerned about the impact of
unplanned immigration and aging populations
38%
41%
Unplanned immigrants and/or refugees
(including illegal immigrants)
Aging population / individuals retiring from
the workforce
38%
49%
Factors negatively impacting skilled labor QUALITY and AVAILABILITY
availabilityquality

• Governments have been overwhelmed by the extent and depth of the challenge
• Educational institutions struggle to adapt to changing needs of industry
• Private sector has been underinvesting in necessary engagement and training
Leadership in addressing skills challenge has not yet emerged

Leaders believe governments should bear most
responsibility in developing and maintaining skills…
Higher Education
Private Sector
Secondary Education
Governments
Government Executive ViewGlobal Executive View
78%
67%
49%
46%
84%
62%
64%
47%
Who should bear most responsibility in developing and maintaining worker skills
Individuals 39% 42%
+6%
-5%
+15%
+1%
+3%

…however, many governments are currently
overwhelmed in addressing other challenges
Stagnant economic growth
and resource constraints
Economic stagnation and resulting austerity
measures continue to place financial pressures on
government budgets while the shortage of skilled
resources creates further challenges for
governments globally
Growing geopolitical instability and asynchronous
threats are creating increased risks and complexity
in operations while the data explosion is creating
both new opportunities and challenges
Growing and aging populations are creating
increased demand for services while customer
expectations for improved and enhanced access to
services through multiple channels are rising
Increased complexity
Increased demand for
services and citizen
expectations

Confidence in educational systems’ abilities to
address skills challenges is underwhelming…
50%
Industry executives believe secondary
schools are preparing students to be
productive members of the workforce
Executives believe educational systems succeed at…
Updating curricula and
programs to keep pace with
technological changes
Preparing individuals with the
skills they need to compete
upon completion of higher
education programs
Preparing individuals with skills
needed to compete upon
graduation from secondary
education programs
programs to keep pace with
industry changes
Providing programs to ensure
lifelong learning and ongoing
skills development
56%
63%
63%
55%
55%

Industry executives are focused on both sourcing and
developing talent to address skills challenges
100%
100%
100%
100%
100%
100%
66%
65%
46%
62%
57%
48%
Acquiring talent from outside the organization
Reskilling employees based on business priorities
Leveraging apprenticeships and internship programs to train
and develop talent
Leveraging talent and skills through ecosystem partners
Leveraging new and emerging educational programs /
platforms to enhance employee skills
Moving talent across business units and divisions
100%44%Moving talent across geographies
Industry strategies and tactics to address skills challenge
100%43%Applying analytics to analyze and predict skill supply and
demand issues
100%37%Leveraging visa programs to source talent from international
labor markets
100%33%Implementing skills / capability recognition initiatives to
recognize and track skills progressions

…however, industry has not demonstrated the ability
to adequately address these challenges
51%
Industry executives that believe their
business culture supports employee
career development
55%
Executives that believe inadequate
investments from private industry is the most
fundamental challenge in addressing skill
development issues
Industry executives’ greatest challenges related to skills
Addressing gaps in core skills
for newly recruited employees
Keeping workforce skills
current and relevant despite
rapid advancement in
technology
Maintaining skills currency of
long-term employees
Finding appropriately skilled
workers in local labor markets
Accommodating multiple,
diverse learning styles of
employees
55%
60%
60%
49%
51%
Retaining top-performing
employees with critical skills
48%

• Complacency over the current state of skills
• Overconfidence in current capabilities to address problems
• Disconnects between major ecosystem stakeholders
Three factors continue to complicate the issue of skills globally

While most industry executives cite major challenges
in finding workers with required skills…
51%
Industry executives citing finding appropriately skilled workers in local labor
markets among their greatest skills-related challenges
71%
Corporate recruiters that indicated they cannot find applicants with sufficient
practical experience

...paradoxically, respondents report great confidence
in both the quality and availability of critical skills
Technical core capabilities for STEM
Ability to communicate effectively in a
business context
Willingness to be flexible, agile and
adaptable to change
Ability to work effectively in team
environments
Fundamental core capabilities around
reading, writing and arithmetic
Basic computer and software / application
skills
Time management skills and the ability to
prioritize
Availability and quality of most critical skills in your country’s workforce
Analytics skills with business acumen
Capacity for innovation and creativity
Ethics and integrity
Industry / occupation specific skills
availabilityquality
91%
90%
95%
88%
89%
84%
92%
90%
94%
90%
96%
92%
93%
98%
89%
90%
86%
93%
92%
95%
92%
97%

100%
100%
100%
100%
100%
100%
100%
100%
100%
…across regions…
100%
58%
53%
50%
49%
49%
95%
95%
95%
82%
92%
Nordics
Latin America
North America
CEE
Asia Pacific
Finding skilled workers in local labor
markets is a challenge
Availability of critical skills is
competitive in local labor markets
100%
100%
48%
96%
Europe
100%
100%
48%
72%
Arica
100%
100%
40%
96%
Middle East
Availability of critical skills by country

100%
100%
100%
100%
100%
100%
100%
100%
100%
…across regions (cont.)
100%
20%
43%
45%
55%
60%
93%
78%
94%
95%
67%
Middle East
CEE
Nordics
Europe
Africa
100%
100%
60%
94%
North America
100%
100%
63%
90%
Asia Pacific
100%
100%
66%
94%
Latin America
New employees recruited in local
labor markets have requisite skills
Quality of critical skills is competitive
in local labor markets
Quality of critical skills by country

Respondent perceptions of skills in certain regions
do not reflect labor market realities
WEF Human Capital Index median
country score
69%
94% 95%
91%
80%
95% 96% 95%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
40
45
50
55
60
65
70
75
80
85
90
Africa Middle East Latin
America
APAC CEE North
America
Europe Nordics
Respondents that belive quality and availability of critical skills is competitive in local labor markets WEF Human Capital Index 2016 Score

• Which skills are critical;
• The quality and availability of skills and the forces impacting them; and
• Who should be responsible for resolving global skills challenges
There are fundamental disconnects across groups as to…

Many respondents indicate they collaborate with a
variety of ecosystem partners…
Workforce development
organizations
Public colleges / universities
Private sector companies
Private colleges / universities
Government organizations 71%
37%
30%
29%
26%
Other workforce development
organizations
Government organizations 55%
45%
40%
31%
31%
Other public colleges / universities
Industry groups / coalitions
Community and/or technical colleges
Other private colleges / universities 43%
42%
41%
41%
32%
Other private sector companies
Industry groups / coalitions 46%
45%
39%
37%
36%
Workforce Development / Employment Services Key
Ecosystem Partners
Labor / Workforce Policy Key Ecosystem Partners
Industry Key Ecosystem PartnersEducation Key Ecosystem Partners

…however, the perspectives of respondents on skills
issues varied widely across the four major roles
Mean
Perspective spectrum

1. The most critical skills required by members of the workforce;
2. The state of the quality and availability of those critical skills in labor markets;
3. The most fundamental challenges in addressing skill development issues;
4. The impact of industry and economic changes to skills demand; and
5. Who should lead the skills issue and who should be responsible for making required
investments
Respondent perspectives across these four roles
varied widely in five key areas

Perspectives on critical skills varied widely –with
government execs and policy leaders most divided…
4
5
2
7
8
2
1
6
Technical core capabilities for STEM
Basic computer and software / application skills
Ability to communicate effectively in team environments
Fundamental core skills around reading, writing and arithmetic
Ability to work effectively in team environments
Time management skills and ability to prioritize
Willingness to be flexible, agile and adaptable to change
Analytics skills and business acumen
Most critical skills required for members of the workforce
Labor / Workforce
Policy
Workforce
Development /
Employment
Services
Education
Government
Executives
4
5
2
7
8
3
1
5
4
5
2
7
7
3
1
6
4
5
1
7
8
3
1
6

Most respondents agree governments should lead
the skills issue but views of other roles are mixed…
100%
100%
100%
100%
75%
77%
78%
85%
Governments
Labor / Workforce
Policy
Workforce Development /
Employment Services
Education Industry
100%
100%
100%
100%
40%
49%
53%
38%
Private sector
companies
100%
100%
100%
100%
76%
66%
67%
75%
Higher education
institutions
100%
100%
100%
100%
44%
40%
60%
56%
Secondary education
institutions
Who should bear significant responsibility in developing and maintaining worker skills

Despite advocating for their leadership, policy
leaders are the most skeptical of educational
institutions
100%
100%
100%
100%
71%
72%
61%
49%Using new
technologies to
expand access to
educational programs
and enhance learning
experiences
Labor / Workforce
Policy
Employment Services
Education Industry
100%
100%
100%
100%
49%
57%
51%
45%
programs to keep pace
with industry changes
100%
100%
100%
100%
48%
54%
60%
45%
Providing programs to
ensure lifelong
learning and ongoing
skills development
100%
100%
100%
100%
69%
66%
57%
47%
Preparing individuals
with the skills needed
to compete upon
graduation from higher
education institutions
Educational systems succeed at…

Most agree investments are needed but workforce
developers have different views on who should pay
Strategies needed to address skills challenges
100%
100%
100%
100%
41%
52%
52%
49%
Increase government
investments in workforce
training programs
Labor / Workforce
Policy
Employment Services
Education Industry
100%
100%
100%
100%
25%
33%
33%
31%
Increase government
investments in higher education
100%
100%
100%
100%
62%
59%
58%
51%
Increase private sector
training programs

Despite massive disconnects, leaders across
industry only plan to increase collaboration
marginally
Industry groups / coalitions
Workforce development organizations
Private colleges and universities
Other private sector learning organizations
Who ecosystem partner organizations work with to develop strategies and implement interventions
Government organizations
Next 5 YearsToday
43%
43%
28%
38%
37%
37%
26%
22%
42%
49%
46%
42%
45%
42%
33%
30%

• Government organizations will be unable to effectively conduct their missions
• Industries will be unable to innovate, build shareholder value and create jobs
• Regional economies will be unable to recruit and retain industries
• Individuals will not be equipped for higher skilled / higher paying new roles
If left unresolved, there is potential for severe implications

• Build cohesive regional ecosystems comprising strong leadership and common vision
• Define, prioritize and invest in proven, innovative solutions
• Enable individuals and advocate for personal responsibility
Addressing this challenge will require a team effort

Many believe improved ecosystem collaboration is
needed and a majority are already realizing value
84%
Education executives indicating that
improving collaboration among ecosystem
partners has been an impactful strategy
79%
Policy executives indicating that
implementing policies / or programs to
facilitate / orchestrate collaboration among
key partners has been an impactful strategy
Top 5 strategies / interventions most needed to address
skills challenge (Government executive responses)
Increase private sector
investments in training
programs
Increase government
training programs
Connect ecosystem partners so
skills data can be used to
improve outcomes
Improve collaboration between
ecosystem partners
Improve collaboration between
academia and industry in
curriculum development
48%
54%
65%
39%
44%

The skills value chain relies on a new form of
economic structure we refer to as ecosystem
An ecosystem is…
 a complex web of
interdependent enterprises and
relationships aimed to create
and allocate business value
 broad by nature, potentially
spanning multiple geographies
and industries, including public
and private institutions and
consumers
Stakeholders in regional ecosystems (as
opposed to one-on-one relationships) are
able to to more readily overcome barriers
and accelerate establishment of new
initiatives and innovation
"We've created industry
advisory boards for each
discipline for defining
curriculum and also engage
and bring industry leaders to
teach courses."
Chancellor, North American Public
University

Ecosystems create new forms of value in new and
different ways
Markets comprise entities that
operate out of individual self-interest
Ecosystems comprise entities that operate
out of orchestrated, mutual shared-interest
A set of individuals or organizations who
exchange products or services within an
environment governed by the laws of supply
and demand
A set of individuals or organizations who
formally or informally operate together to
produce something of greater value for the
mutual benefit of the ecosystem as a whole
Ecosystems exists because operating in an orchestrated environment, participants
can deliver more value within the ecosystem acting together than acting alone

 Civic engagement and strong leadership from industry
 Strong connections with government leaders, particularly leaders responsible for workforce and
labor policy, regional economic development organizations, workforce development / public
employment service organizations
 Intermediary organizations that serve as the ecosystem orchestrators
– Role is critical to uniting organizations and defining the value proposition of taking action
– NGOs, workforce / economic development organizations, regional colleges / universities,
industry associations, and chambers of commerce are all potential candidates
 Common vision and long-term charter
– Must clearly define commitments and provide for accountability mechanisms through
transparency (e.g., publicly released annual reports)
– Must align with larger economic and workforce development strategies
– Institutionalizing processes and formalizing commitments is critical to sustainability
 Early wins
– Educational institutions and workforce development organizations must demonstrate
commitments and show results early to keep industry engaged as a partner
 Collaborative data sharing to enable better signaling of what jobs and skills are in demand
– Signaling data must shared to educate all ecosystem members, including students and
parents
Several elements are critical to creating and
sustaining effective skills ecosystems

Case example: effective ecosystem collaboration
The Toronto Financial Services Alliance (TFSA) is a
unique, public–private partnership dedicated to
growing Toronto region’s financial services cluster and
building it as a “top ten” global financial services
center. Established in 2001, TFSA is a collaboration
involving, the financial services industry, three levels of
government, and academia.
TFSA works collaboratively with industry and government to build international awareness of
the advantages offered by the Toronto region and to set, drive, and execute cross-sector
priorities for the growth of jobs and investment in the Toronto region financial sector.
To capitalize on the region’s talent advantages, TFSA established the Centre of Excellence
in Financial Services Education. The Centre has a website which is a resource for
information on talent demands, careers and education in the financial services sector in
Toronto. The website features a comprehensive Financial Services Career Advisor, which
allows individuals to explore new opportunities in Toronto’s financial services sector and
provides in-depth information about the state of talent and talent needs in the sector.
Source: Toronto Financial Services Association (TFSA) website.

Case example: orchestrating effective ecosystem
collaboration
The Business-Higher Education Forum (BHEF) is
the nation’s oldest membership organization of
Fortune 500 CEOs, college and university
presidents, and other leaders dedicated to the
creation of a highly skilled future workforce.
BHEF launched the National Higher Education and Workforce Initiative to address the
challenge of a shortage of highly skilled workers in the United States, particularly in the
areas of data science and analytics, cyber security and information technology.
Recognizing the important role that business and academia can play in addressing
workforce challenges together and the need to act based on evidence, BHEF has developed
a robust process for initiating business-higher education partnerships that respond to local or
regional workforce needs. Business and academic partners can use tools to assess their
needs and available resources, and to identify interventions that can be deployed to attract
and retain undergraduates in key emerging fields. BHEF has many regional projects
underway in data science and analytics, cyber security, engineering, and other fields.
Source: Barkanic, Stephen. Aligning Postsecondary Education with Regional Workforce Needs: A Tale of Two States. Business-Higher Education Forum. 2016.

Launched in 1994 by local business and civic leaders
to ensure all students would progress smoothly through
the education systems and into the workforce, the Long
Beach Seamless Education Partnership (the
Partnership) has become a defining feature of the
community and a model for higher education
ecosystem collaboration.
Formed among CSULB, Long Beach City College and Long Beach Unified School District
(LBUSD), The Partnership was seen as a pre-requisite to economic growth a critical enabler
of the economic growth and prosperity objectives of the Long Beach Economic Partnership.
The Partnership has grown to include countless programs and initiatives that seek to provide
world-class education from preschool to graduate school and prepare Long Beach students
for successful engagement in the global knowledge economy
Source: “Improving Education Through Collaboration: A Case Study of the Long Beach Seamless Education Partnership.” Business-Higher Education Forum. 2009.

Since the early 1990s, the Malaysian Ministry of
Education has emphasized the need for collaboration
between the public and private sectors in the areas of
R&D and human capital development to drive
economic growth.
In collaboration with industry partners, the Ministry of Education has enhanced the market
orientation of academic courses to ease student transition into the workforce and to improve
overall student employability.
The Knowledge Transfer Partnership (KTP) program was introduced to facilitate
collaboration between industry and various universities. KTP broadens the industry
experience of university faculty members and provides industrial-based trainings programs
to enhance the practical knowledge, business skills, and employability of graduates.
Source: University-Industry Collaboration Models in Malaysia, 2013.

The Tampa, Florida metro region is economically diverse and
home to multiple public and private sector higher education
institutions. The Region has seen significant economic growth,
due in large part to the collaborative relationships between
higher education institutions and industry leaders.
The University of South Florida (USF) actively engages and
collaborates with industry through industry advisory councils to
ensure the currency and relevance of curricula.1
Hillsborough Community College (HCC) campuses engage the community through a
Council that represents multiple stakeholders (e.g., local businesses, government,
neighborhood associations, corporate partners, educational institutions) and focuses on a
variety of topics from enhancing the student experience and updating the college's mission.2
The Tampa Hillsborough Economic Development Corporation (EDC), the lead economic
development agency for the Region, facilitates collaboration with USF, HCC, other higher
education institutions and industry to facilitate sustainable, diverse job growth, resulting in
increased prosperity and opportunity for the entire metro area.3

 Identify the right partners and empower an “orchestrator”
– Identify key partners from government, education, industry and the non-profit sector, and
then define and empower a strong intermediary to recruit partners and build consensus
 Crystalize the vision, define objectives and gain commitments
– Define and reach consensus on a clear and common vision with clearly defined
commitments across ecosystem partners
– Define ecosystem business intelligence requirements and strategy for addressing data
collection and sharing among partners
 Formalize processes and design for sustainability
– Define and formalize processes and accountability mechanisms to help ensure partners
remain engaged and committed
– Encourage partners to align internal business metrics to the ecosystem vision
Chart the course for your region’s skill ecosystem…

Educational institutions should consider adopting
strategies that have proven to be impactful
Improving the relevance of content in educational programs
Introducing credentials to recognize capabilities learned within
the curricula
Creating more opportunities for experience / practice-based
learning in educational programs
Developing more personalized and targeted training programs
and curricula
Updating curriculum and programs to keep pace with
technological changes
Improving collaboration among ecosystem partners
Developing and tailoring programs to meet demands for lifelong
learning and ongoing skills development
Adoption rates and observed impact of strategies / interventions to address skills challenges
Improving the affordability of educational programs and
resources
Increasing access to educational programs and resources for
underserved populations
ImpactAdoption
48%
40%
47%
17%
54%
51%
46%
50%
47%
84%
76%
70%
72%
72%
70%
69%
68%
67%
Increasing access to educational programs and resources 49% 66%
Using new technologies to expand access to educational
programs and enhance learning experiences 52% 64%

Case examples: deliver relevant and applied learning
experiences and career development opportunities
CRCC Asia is a leading provider of
internships in China that specializes in
connecting China with the global community
through award-winning internships.
CRCC collaborates with more than 400
companies in China to provide students the
opportunity to further their personal and
professional development. CRCC has grown
from a pilot program in 2007 with 20 interns
to over 2000 interns in 2013.
In Canada, vocational education and training
is regulated by the Red Seal program, an
interprovincial standards framework of
programs that meet industry standards.
After completing an apprenticeship program,
students can earn a Red Seal endorsement
by passing a national Red Seal examination
in their field. Red Seal provides recognized
interprovincial standards in Canada for 53
occupations.

Policy executives should consider adopting strategies
that are proven and have demonstrated success
Increased incentives for private sector investments in workforce
training
Implementing formal skills recognition and/or certification
programs
Implementing “bridge building” work-based learning programs
Expanded/enhanced immigration policies to allow for temporary
and permanent visa programs for highly skilled workers
Increased government investments in workforce training
programs
Implementing policies or programs to facilitate/orchestrate
collaboration among key ecosystems partners
Increased government investments in secondary education
Adoption rates and observed impact of policies / programs to bolster labor market competitiveness
Increased government investments in higher education
ImpactAdoption
44%
36%
44%
24%
60%
41%
49%
44%
79%
79%
70%
78%
77%
71%
67%
61%

Case example: leveraging industry partnerships to
deliver relevant and applied learning experiences
The P-TECH School Model is an education
model that integrates high school, college and
workplace learning. Upon completion of this
six year program, students earn their high
school diploma and an industry-recognized
two year postsecondary degree. Students are
also prepared with the knowledge required to
continue their studies in a four year program.
P-TECH is open to all students with pre-admission requirements. During the program each
student is paired with industry mentor where they participate in work site visits, project days,
and skills-based, paid internships. Successful graduates are first in line for jobs with their
industry partner.
IBM launched the first P-TECH school in Brooklyn, New York in 2011. The model has been
replicated to 40 schools in the U.S. with 70 industry partners and will grow to more than 60
schools by the end of 2016. IBM has created www.ptech.org to help public / private
partnerships replicate the model in regions around the world.
Source: Models of Success: An archive of case studies done under Skills for America’s Future highlighting effective partnerships that benefit community colleges, businesses, and
students. The Aspen Institute. March 2016.

Workforce developers should seek ways to adopt
interventions which have demonstrated success
Online training programs
Policies
Classroom training programs
Apprenticeship / internship programs
Adoption rates and observed impact of interventions in addressing skills related issues in area of responsibility
ImpactAdoption
45%
49%
75%
32%
96%
89%
88%
86%

Case example: leading practice in ecosystem-
enabled apprenticeship programs
Despite paying wages higher than other
advanced economies, German manufacturing
succeeds in the global marketplace and accounts
for 20% of national employment and 22% of
GDP. Germany’s manufacturing sector benefits
from a national policy effort to support clusters of
globally competitive manufacturers through
public-private collaboration focused on sustaining
a highly skilled workforce.
The most common career pathway in Germany, the dual system, enables students to obtain
field-specific workplace skills in hundreds of occupations that cover all aspects of the
economy. The dual system participants establish close relationships with employers and on-
the-job training typically comprises two-thirds of the curriculum.
The apprenticeship model in Germany requires investments and commitments from all
ecosystem partners (e.g., employers, chambers of commerce, government, labor
organizations) and provides real rewards and benefits for the economy, industry and
individuals.
Source: Strategies to Strengthen U.S. Manufacturing: Lessons from Germany. The Brookings Institute. 2015.

 Government leaders should assess opportunities for adopting strategies that have proven
to be impactful by government leaders globally, including:
– Working with industry and ecosystem partners to create and expand apprenticeship /
internship programs
– Providing incentives for private sector investments in workforce training
– Implementing formal skills recognition and/or certification programs
– Implementing “bridge building” work-based learning programs
– Expanding / enhancing immigration policies to allow for temporary and permanent visa
programs for highly skilled workers
Next steps to investing in and prioritizing proven,
innovative solutions

Executives have little confidence in individuals taking
responsibility for their skills future…
38%
Government executives that believe a lack
of motivation among individuals to
proactively update and improve skills is one
of the most fundamental skills issue in their
country
42%
Government executives that believe
individuals should bear a significant
responsibility in developing and maintaining
worker skills

… but if individuals don’t take responsibility for their
skills future, who will?
57%
Government executives that indicate
supporting career development is a part of
their organization’s business culture
52%
Government executives that indicate
maintaining skills currency of long-term
employees is one of their greatest
challenges

Case example: Building sustainable programs for
critical technical skills
The National Security Agency (NSA) and the
Department of Homeland Security (DHS) jointly
sponsor National Centers of Academic Excellence
(CAE) at more than 200 higher education
institutions across the United States focused on
building critical skills in cyber security.
The goal of the program is to reduce vulnerability in the nation’s information infrastructure by
promoting higher education in cyber security defense and producing a growing number of
skilled professionals to work in both the public and private sectors. Students attending CAE
schools are eligible to apply for scholarships and grants through the U.S. Department of
Defense Information Assurance Scholarship Program and the Federal Cyber Service
Scholarship for Service Program.
Sources: “NSA/DHS Current National CAE Designated Institutions.” Information Assurance at the National Security Agency website, accessed March 19, 2017.
https://www.iad.gov/nietp/reports/current_cae_ designated_institutions.cfm; “National Centers of Academic Excellence in Cyber Defense.” NSA CSS. NSA website, accessed June
7, 2017. https://www.nsa.gov/resources/educators/centers-academic- excellence/cyber-defense/

Technology is now enabling advancements toward
real personalized learning systems
 Personalized learning has long been the goal for educators and advancements in
cognitive computing technology could contribute significantly
 Cognitive systems can understand, reason, learn and interact with humans naturally to
interpret data while learning from every interaction
 Data-driven cognitive technologies can enable personalized education and improve
outcomes for stakeholders across the skills ecosystem
 Imagine a world where...
Teachers have virtual
assistants to evaluate
learning styles and
needs and help develop
personalized learning
plans tailored to
individual students
Anonymized skills data
is shared between skills
ecosystem partners to
inform policies,
programs and
curriculum changes
Career advisor systems
are available to advise
individuals which
opportunities they
should pursue based
on their lifelong record
of skills and interests
Source: Source: Cave, R., Foden, N., King, M., and Stent, M. Personalised education: From curriculum to career with cognitive systems. IBM Corporation. April 2016.

Case example: leveraging technology to enable
personalized learning and career guidance
MARi is a personal learning platform that
provides an entirely new model for how
knowledge and skills are acquired. Mari acts
like a “personal learning GPS” by learning
precisely the individual’s academic and career
skills and the fastest personalized path to
achieve the desired destinations.
Similar to online finance and healthcare profiles, MARi’s personal learning platform securely
brokers personal attributes for the individual’s benefit. MARi is based on 15 years of R&D
and is a collaborative effort led by a team of data scientists, educators and entrepreneurs.
MARi provides freemium services to academic and non-profit partners and also has a
solution for employers that allows them to create deep-skill job descriptions for positions and
allow candidates to match themselves to job requirements. Mari’s employer solution also
provide employees continuous guidance on how their skills match up to future jobs in the
organization and provide skills feedback to employees.
Source: MARi LLC website.

 Government and Education leaders should work together to:
– Pursue opportunities to leverage advanced technologies such as personal learning assistants
to develop more personalized and targeted training programs and curricula that support
and enable life-long learning for individuals;
– Work to actively promote and educate individuals –both employees and students – of the
importance of life-long learning and ongoing skills development; and
– Pursue partnerships and opportunities to make educational programs relevant,
accessible and affordable for all individuals.
 Government leaders should explore opportunities for leveraging advanced technologies to
enable personalized learning in workforce development programs and incentivizing regional
industry and education partners to develop programs and capabilities that enable life-long
learning.
Next steps to enable and advocate for individual
responsibility

 What is your organization’s strategy for ensuring skills currency and the readiness of your
workforce?
 How is your organization working with stakeholders to implement proven strategies and
interventions to improve skills outcomes in your region?
 To what degree is the education system in your region providing practical and applied
educational opportunities?
 How are new technologies being leveraged to enable personalized learning for individuals
in your organization and your region?
 How engaged and coordinated are ecosystem partners in your region? What can your
organization do to improve ecosystem coordination?
Conversation starters

About the authors
Mike King is the Global Education Industry Vice President for IBM Global
Business Services. He is also an IBM Industry Academy Member. Mike is
responsible for strategy, marketing and sales across schools and higher
education. Mike can be reached at mdking@us.ibm.com.
Dave Zaharchuk is Research Director and Global Government and Education
Industry Leader for the IBM Institute for Business Value. Dave is responsible for
directing thought leadership research on a variety of issues. Dave can be reached
at david.zaharchuk@us.ibm.com.
Tim Paydos is the Global Vice President of IBM’s Government Industry Solutions
Competency and also an IBM Industry Academy Member. Tim leads solutions and
go-to-market strategy for IBM’s global government team and has more than 20
years’ experience working in the government industry. Tim can be reached at
tpaydos@us.ibm.com.
Marquis Cabrera is is the Global Leader of Digital Government Transformation in
IBM’s government industry Center of Competence and also head of the IBM Agile
Government Lab. Marquis leads transformation strategy and asset development
across all government industry segments globally. Marquis can be reached at
mcabrera@us.ibm.com

A two front battle: How governments can prevail in the fact of the global skills crisis

A two front battle: How governments can prevail in the fact of the global skills crisis

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