The Future of Work Implications for Economic Developers
Dr. Charles Grantham Executive Producer Work Design Collaborative
IEDC Master Deck
The Panel
• Charlie Grantham – Founder, Work Design Collaborative – Co-lead, WIRED Knowledge Workers and Economic Development
• Mark Lautman, CEDC – Director of Economic Development, Mesa del Sol – The new economic development paradigm
• Noreen Moore – Director of Economic Development, Routt County, CO – Location Neutral Workers: Case Study
• Cindy Larsen – President, Muskegon (MI) Chamber of Commerce – Knowledge Workers and Downtown Vitality
© Copyright 2007 by The Work Design Collaborative. All rights reserved
-1Haworth Executive Briefing August 2007
Something’s Happening Here . . . What it is, is not exactly clear* An Assertion: The economy is in the early stages of a fundamental transformation in the way work is organized, managed, and performed.
A Belief: The creative, integrated management of workers, the places they work, and the technology they rely on can reduce workforce support costs by as much as 40% while substantially improving productivity, effectiveness, worker satisfaction and retention, and organizational agility. © Copyright 2007 by The Work Design Collaborative. All rights reserved
*From “What It’s Worth,” by Buffalo Springfield
-2Haworth Executive Briefing August 2007
But First, Some Shameless Self-Promotion Three Business Imperatives
Reducing Fixed Operational Costs
Virtual Work
Closing the Talent Gap
Institutionalizing Innovation Publication Date: August 2007, by the American Management Association
Š Copyright 2007 by The Work Design Collaborative. All rights reserved
-3Haworth Executive Briefing August 2007
The facts
• There is a long tem labor shortage in the US—especially among knowledge workers
• The workforce has different attitudes about where they work and where they live
• Baby boomers and Gen Y’ers both are migrating to small, more rural areas
© Copyright 2007 by The Work Design Collaborative. All rights reserved
-4Haworth Executive Briefing August 2007
What You Don’t Know You Don’t Know U.S. Labor Force - Demand and Supply in Millions 250 200 150
Labor Needed
100
Labor Available
50
2030
2028
2026
2024
2022
2020
2018
2016
2014
2012
2010
2008
2006
2004
2002
0
Source: Employment Policy Foundation and BLS data © Copyright 2007 by The Work Design Collaborative. All rights reserved
-5Haworth Executive Briefing August 2007
People
Workforce Values and Expectations* This is not your father’s workforce TRADITIONAL WORKER
VALUES Career
EMERGENT WORKER
Promotion
Company’s Responsibility Tenure
Employee’s Responsibility Merit
Retention
Security
Growth
Management Style
Paternalistic
Peer
Organization Chart
Admire
Ignore
Changing Jobs
Fear
Advancement
Type of Worker
1997
Emergent
20%
22%
31%
Migrating
46%
49%
48%
Traditional
34%
29%
21%
1999
2003
2007 (projected)
52% 40% 8%
* http://www.spherion.com/corporate/aboutus/newsevents/EWFrelease.jsp © Copyright 2007 by The Work Design Collaborative. All rights reserved
-6Haworth Executive Briefing August 2007
Where and When Will Work Be Done?
Corporate Facilities 30%
In Between 35%
At Home 35%
• Work will be accomplished in a wide range of locations, and on the go
• Work will be spread throughout the day and week (24x7); no more 8 to 5 agricultural schedules
• Work will take place in shorter “chunks,” down from months to weeks—pay for project performance © Copyright 2007 by The Work Design Collaborative. All rights reserved
-7Haworth Executive Briefing August 2007
Where they will be
Š Copyright 2007 by The Work Design Collaborative. All rights reserved
-8Haworth Executive Briefing August 2007
One Vision of What’s To Come
• Work will be much more distributed – and will happen in many more places
• Work will be much more collaborative • The workforce will be much more diverse • Social and economic bonds between workers and organizations will be weaker, shorter, and more fluid
• Employment laws will reflect the new reality of the “free agent nation”
© Copyright 2007 by The Work Design Collaborative. All rights reserved
-9Haworth Executive Briefing August 2007
The new economic development model
• It’s not about attracting businesses • It’s about a community that attracts these new workers • It’s about building a place that is a magnet • ……………………………. • ………………………………. • …………………………….. Mark, this is where you can start
© Copyright 2007 by The Work Design Collaborative. All rights reserved
- 10 Haworth Executive Briefing August 2007
Mark slide #1
Š Copyright 2007 by The Work Design Collaborative. All rights reserved
- 11 Haworth Executive Briefing August 2007
Mark slide #2
Š Copyright 2007 by The Work Design Collaborative. All rights reserved
- 12 Haworth Executive Briefing August 2007
Noreen Moore / Steamboat Springs / Routt County, Colorado
• Routt County, Colorado: – population ~22,000 – an attractive place to live and work – 1st to 4th Generation Economy (Jonathan Schechter) 9Ag – mining – tourism - lifestyle
• Motivation for the Location Worker Study 9My
neighbor works for Pepsi but he does not drive the truck 9Census Data (Place of work – Place of Residence) / BEA Data – Professional/Information Income increase © Copyright 2007 by The Work Design Collaborative. All rights reserved
- 13 Haworth Executive Briefing August 2007
The Growth of “Location-Neutral” Businesses Creating a “Hidden Economy”
• Location-Neutral: – employees live here, businesses based there – owner lives here, employees based anywhere
• Case Example:
Routt County, Colorado:
– population ~22,000 – an attractive place to live and work – 700 “remote work” households (10% of the total) averaging well over $100,000 in household income – location-neutral businesses contribute $35 million to the local economy, creating over $600,000 in sales tax revenue Sources: “The Easiest Commute of All,” Business Week, December 12, 2005 “Location Neutral Businesses: Survey Results,” Routt County Economic Development Cooperative, March 2006 © Copyright 2007 by The Work Design Collaborative. All rights reserved
- 14 Haworth Executive Briefing August 2007
The New Frontier
• What’s happening now – • It is a part of the community’s language (Speaker series to •
educate) How has this changed our economic development program – Focus on “Economic Gardening” has yielded a new perspective on our economy – (RCEDC) – “Sense of Community as an economic asset” 9 Livability Index
• Ideas for the future – – – –
Design criteria for downtown Creation of “watering holes” (Intellectual stimulation – creative class) Housing / Affordability / Quality of life
© Copyright 2007 by The Work Design Collaborative. All rights reserved
- 15 Haworth Executive Briefing August 2007
Muskegon Michigan—WIRED Project
• Muskegon Redevelopment – Affordable ‘cool’ loft apartments, live entertainment, free beaches – Culinary School downtown – Safe for young families – Good Public Schools • Importance of these knowledge workers – Increased demand from companies – Technology Skills – Creative solutions – World view perspective – High energy © Copyright 2007 by The Work Design Collaborative. All rights reserved
- 16 Haworth Executive Briefing August 2007
Muskegon Scorecard Numbers Dashboard Population
170,000
Growth Rate
7.1%
Employment
75,376
Knowledge Workers
4,457
Out of Area Workers
17,788
Funding Availability Public Private Philanthropic Support Variables Economic Development Community Environmental Impact
Note: These figures based on 2000 US Census data Š Copyright 2007 by The Work Design Collaborative. All rights reserved
- 17 Haworth Executive Briefing August 2007
Development plans
• Remote Work Center(s) • Residential and Commercial Development • Regionalization • Support – Large business – Entrepreneurs
www.muskegon.org © Copyright 2007 by The Work Design Collaborative. All rights reserved
- 18 Haworth Executive Briefing August 2007
Why should you care
• Create jobs and nurture new businesses – attract high-quality labor – attract innovative organizations and employers – help local talent stay local (while exporting services and growing the economy)
• Maintain jobs and job sources • Revitalize the local business district • Make the community a “talent magnet” • Supplement the tax base • Develop new sources of sustainable revenue
© Copyright 2007 by The Work Design Collaborative. All rights reserved
- 19 Haworth Executive Briefing August 2007
For Further Information Dr. Charles Grantham Prescott, Arizona +1 928 771 9138 office +1 928 533 9149 mobile charlie@thefutureofwork.net www.thefutureofwork.net
Š Copyright 2007 by The Work Design Collaborative. All rights reserved
- 20 Haworth Executive Briefing August 2007
Where to Go to Learn More Publication Date: August 28, 2007 American Management Association 256 pages ISBN #0814409113
Š Copyright 2007 by The Work Design Collaborative. All rights reserved
- 21 Haworth Executive Briefing August 2007