THE AREA’S BEST-KEPT SECRET IN TRAINING? FOR BUSINESS PROFILE MAGAZINE PRINTED IN DECEMBER 2003 ISSUE By Iren Kleppe When called in to help a client who had spent astronomical amounts of money on unsuccessful team development, Tom Gospodarczyk, Dean of Corporate & Community Services (CCS) at Sauk Valley College in Dixon knew they could get the teams up and running. However, the college’s price was too low, and the client found it too embarrassing after having spent all that money. And nothing was done.… Can you be too cheap? Obviously so. Complicating the picture is the economic downturn, resulting in funding cuts, cuts in training grants, industry layoffs, and companies holding off on training. Although struggling— like so many of us—to do more with less, these centers are still open for business and ready to help business and industry become more productive and competitive. The community college system continues to be a strong contributor to workforce development in our area. Over the years, the college business and industry (B/I) centers have built an impressive expertise, which is available to their clients through customized training, public workshops, distance learning, small business development, economic and community development, manufacturing and other technical assistance, and more. Preston Morgan, Senior Director of Workforce Development at the Illinois Community College Board (ICCB), explains that the Illinois centers were created through an initiative from the State of Illinois in “an effort to help boost economic development.” Morgan continues: “Whenever companies relocate, one of the chief criteria is a well-trained workforce. It’s important to get the community colleges involved, as they keep the pulse on the needs of the business community and are able to respond—they can jump in and help with training needs. They do it by working with local businesses, having advisory committees and [by participating in] business groups within the community.” The services are organized somewhat differently at the colleges. Morgan explains: “These are local decisions, as long as the business community has direct access to the services. The cookie cutter approach is wrong because each area has unique characteristics; one size does not fit all. The colleges design their organizations to better meet local needs, that’s a strong plus for the communities.” On the economic downturn, Morgan states: “The State of Illinois has a severe budget problem, and as a result, the community college system is affected, taking on cuts like everybody else. Grants to business and industry services have been cut about 40%. Coupled with that is loss of current workforce grants—those funds were consolidated within the Department of Commerce and Economic Opportunity (DCEO). The community college system has worked closely with the DCEO [earlier DCCA], and I feel we have a strong partnership. The DCEO has also taken the Prairie State program and current workforce grants and consolidated them into the Employer Training Investment Program (ETIP). This program has several components, such as a large company and a small company grant,” including “single or multiple company grants.” Morgan adds: “The State is trying to maximize by consolidating for a bigger bang for the buck.” Morgan believes the current economic downturn presents “a chance for the community colleges to work more closely together; internally tearing down the silos, getting non-credit and credit programs to work more closely together. I think there’s a lot more collaboration between and within the colleges, but also with local groups within their districts. For example, community colleges work closely with economic development corporations and other business associations.” For information about the Illinois Community College business and industry services, visit the Business Solutions Network (BSN) web site at www.bsnillinois.com In Wisconsin, Kyle Schwarm, Director of Statewide Marketing for the Wisconsin Technical College System (WTCS), confirms that while regular [credit] enrollment is up, “the economy is impacting the colleges.” He assures us that “the colleges play an expanded role in retooling and retraining displaced and relocated workers.” With Wisconsin suffering from enormous losses of manufacturing jobs over the past
couple of years, the technical college system “is looking to respond right now to the needs of the employers in training to raise the level of production and business effectiveness.” William Rockwell, Educational Director for Manufacturing and Engineering within the Wisconsin Technical College System (WTCS), explains that “the system of vocational technical training has a long history,” and that the “business and industry services have been around since the beginning, with increasing ability and sophistication.” He confirms that, as is the case in Illinois, while “the colleges may do it differently… all offer business and industry services” in the form of customized training and technical assistance. The centers offer “a flexible means to respond to emerging needs of industry, with just-in-time development of curriculum and materials or short-term seminars.” Rockwell says they are “trying to build the system to be flexible and responsive, including …a mixed bag of services developed as needed.” He explains that the Wisconsin B/I centers have been expected to be self-sufficient, cost-recovery centers to begin with. In Wisconsin, training grants are channeled outside the college system. However, Rockwell says the colleges will “work with clients to help get those grants to subsidize training.” The WTCS system also works with the Department of Commerce and the Department of Labor on these matters. Regarding funding cuts, Rockwell explains “there have been cuts at various times, [such as] a cut back of the Carl Perkins funding because of State deficits. The WTCS agency has cut 10% or more in other categories. There were also some million dollars worth of funding that have been restored.” He adds that there is “pressure from taxpayers’ groups to keep taxes at low levels” and that they “have had some cuts and layoffs in the colleges, and have downsized at the State office, trying to make up the deficit.” For more information about the Wisconsin Technical College System, visit www.witechcolleges.com With the demand for services from B/I centers following the ups and downs of industry, we were curious to find out how they are coping with the economic downturn and how it is affecting their operations and their ability to help their clients. We were also curious to learn whether anything good has come out of the situation and what opportunities they might see ahead. Although the situation may be difficult, we did—in fact—find some surprises:
Len Janeski, Director of Kishwaukee College Business & Industrial Development (BID) Center in Malta, Illinois, suggests that the current economic situation represents “not so much a cyclical change of the economy, but a structural change. It appears that if the pace of change keeps up… the trend is that manufacturing employment will mirror what has happened in agriculture…. Low wage countries, because of technology, are able to capture jobs from the U.S. and the only way to compete is through ‘no-wage,’ i.e., complete automation—but that doesn’t employ very many people. The challenge of community college B/I centers, is to try and promote economic development at the individual level, i.e., how do we ensure that individuals are prepared to be able to sustain themselves.” Janeski reflects: “So many managers tend to forget that the organization is the people. And when resources are low, the true character shows. The organization has to be making some profit—or whatever its sustaining goals are—in order to be concerned with anything else. In other words, the organization is not going to be thinking about flex time or day care if it is in a fight for survival.” “Most jobs are created by small companies,” Janeski continues, “so naturally we see a rise in entrepreneurship or in maximizing revenue of small businesses [that are] already existing.” To the question of whether he sees themselves shifting focus from training to more small business development, he responds: “It is difficult to really separate the two. Small business development needs sometimes include a training component for the principals or the employees or both,” adding that “the main mission of our center is to help individuals and companies be competitive, that is our reason for existence.” Janeski explains that the BID Center has “shifted more from trying to offer topics that are trendy or popular to offering more of a consultative approach. One size does not fit all…. Usually an organization presents symptoms that are not the real problem.” He continues that, “customized training leads to a consultative approach where someone in management has a concern…. This leads to a discovery phase, trying to determine what is the bottleneck. Every organization, every system has a bottleneck, otherwise they would
have infinite output. Most often we find that the symptoms are just an expression of a problem in communication, and communication is often taken for granted that it works.” Janeski explains that they follow the “action-research process, providing the means for the organization to become self-directed in their learning.” With their State funding slashed nearly 40%, Janeski explains that they “are trying to keep offerings up, but it's more focused on what the specific client needs.” He continues that “the demand for topics is changing, and computer training is no longer a mainstay. Some leadership development still takes place, but it is not as much in demand. So we are focusing on the individual concerns of an organization, which could be from organizational development to a process problem.” He continues that “the BID Center, like other community college B/I centers, has offered areas of service which have been very broad. We are now becoming more like private industry. The level of effort required is increasing, and the old-fashioned idea of security in education and government is gone. We are today more performance based, and—like everybody—are doing more with less.” He concludes: “In general, our situation is changing because resources are shrinking… the organizations we help are facing greater challenges than ever, and it is not only organizational challenges but personal challenges for the people in those organizations. The trick is not to know everything, but enough to bring in the right resources.” Janeski adds: “It's really exciting to face different challenges. We address a wide range of needs in our district. Everything from helping a company, which has developed a potentially revolutionary metal-cutting technology, to helping a Spanish speaking entrepreneur get started.” For more information about the BID Center, call 815-825-2086 ext. 205 or visit their web site at www.kishwaukeecollege.edu/bid
Ginger Knapp, Business Training Specialist at McHenry County College Center for Commerce and Economic Development (CCED) in Crystal Lake, explains: “Business decreased last year, we have downsized some staff and streamlined some processes. We did not cut any services.” She adds that “it’s surprising how we’ve been able to streamline and get the same amount of work done with less.” Knapp is answering our questions in place of Susan Van Weelden, Dean of the CCED, who is on sick leave at the time of the interview. “Businesses are waiting to hear what’s happening, because training grants are in limbo,” she says. She adds that they are “pleased with training requests right now” and that there may be “a pent up demand for training.” Of specific challenges, Knapp mentions that “there is so much competition in training, also staying ahead, and being able to provide all the services companies need. We have to be ahead of the game, in addition to offering all that we have in the past.” They are currently concentrating more in the technical arena, she explains, with companies needing more technical, mandated assistance. Of good news are the new training grants: “Clients know that this is available and are very excited,” she says. Of opportunities ahead, Knapp mentions “staying in contact with the customers, being aware of their current and future needs, and looking for ways to fill those needs.” She believes “the value-added services they provide” sets them apart from the competition. Knapp firmly states: “We are part of the community, not just here to make a sale; we are part of the big picture.” A recent, exciting project involved helping “a very large company develop the training and provide trainthe-trainer for an in house software system the company had developed.” According to Knapp, this has been a very comprehensive project, including the development of on-line assessments, training materials, training, strategic visioning, and train-the-trainer for nationwide implementation. Another unique program, Grants & Special Projects, recently completed a McHenry County Area Business Climate and Expansion Analysis. They are also very proud of their Future Studies, another unique program. Their “Catalyst” newsletter offers several value-added aspects, such as current issues on what is available on recycling grants. Further, their on-campus workshops and seminars work hand-in-hand with customized training. Knapp explains that courses are made up a few months in advance, so they can react quickly to clients’ needs. In addition, the CCED offers Small Business Development, Procurement Technical Assistance, and Manufacturing Extension. For more information about the CCED, call 815-455-8548 or visit their web site at www.mchenry.edu/cced
Robert Link, Director of Business Outreach at Rock Valley College Business and Professional Institute (BPI) in Rockford, also faces the challenge of lost grant funding. The economy along with college reorganizations has caused staff reductions and the inability to fill vacant positions. Link reports that “the manufacturing community… historically has been our major source of customers,” and continues that “the economic downturn and cuts in the funding to the colleges have resulted in the BPI being directed to become self sufficient.” They are now looking to “do cost cutting… where possible.” They are also changing salary structures of sales positions and pricing structures of their services. “We have no full time faculty but we contract with professional providers, most of whom are local,” says Link, adding that “some of our providers have national or international certifications and experience.” Link explains: “We have been able to fulfill our mission so far… and we are seeking more business, which we are still able to handle with existing staff. Some firms are doing well, and some who are experiencing difficulty are still training their people to be ready for the turnaround in the economy. Many companies have had to put training… on hold, due to the necessity to cut costs to keep from closing down.” At the time of writing, Link says they are waiting for more details from the State on upcoming subsidies to support their outreach efforts. “So far we have not had to consolidate our operations with other departments… but that may be required in the future as budget cuts continue…. Our organization has been reshaped by the directions established by the new administration at the college, and to a lesser degree, by the economic reshaping of our manufacturing and area business climate.” “Our greatest challenge is to become self sufficient and then meet a developing expectation that we will return money to the college…. Doing this at a time when budgets have been heavily cut back, new fixed expenses are part of our cost structure, and demand is soft is a great challenge. A concern is that the only things we will be able to do in the future are those which generate enough revenue to be self sufficient, and we will have to strip many current offerings which are important only to a few,” says Link. “We have not eliminated offerings at this point,” he adds, pondering the challenges of meeting demands with upcoming retirements and staff reductions. On meeting these challenges, Link comments: “We are pursuing new markets, products and services to support our business community. Such state-of-the-art programs will assist our local firms to compete in today’s economy, and are exciting opportunities for us and our clients. There still is a great storehouse of expertise in our community that we can tap for the good of all…. We are developing new programs with the cooperation of local firms to assist them to raise the level of their workers’ skills and performance.” Link concludes: “Needs change and innovation is the response,” adding that “the prospect of working with the new Governor’s Enterprise Centers is another developing opportunity.” For more information about the BPI, call 815-921-7821 or visit their web site at www.rockvalleycollege.edu/bpi
Laurie Gungel, Director of the Business Institute at Highland Community College in Freeport, also faces funding cuts of near 40%. That, and the fact that workforce training grants previously channeled through the Illinois Community College system are now being channeled through the DCEO. There is “no ICCB grant for worker training anymore,” says Gungel, “however, training grants are legislated.” She continues: “The Business Institute has always been a cost-recovery unit, but when the funding was cut, we lost a full-time sales person… a huge hit.” Gungel informs that “we have moved back to campus and are now spread over three buildings. We have been given more responsibility, lost staff, and have more to do— just like our friends in manufacturing.” Gungel continues: “Mostly clients just don’t have money for training. There is more work around layoffs, but this is not a money-generator. We… have put together a worksheet to show clients that we make a difference to their ROI. I am convinced we make a difference on their bottom line.” She explains how the economy has “impacted the whole college.” One of their greatest challenges is the elimination of the Continuing Education department. The Business Institute had earlier been restricted from open enrollment classes, but Gungel asserts they “need to provide those services anyhow.” She adds that “this has expanded areas we can offer classes in. We need open enrollment, it doesn’t work well otherwise.” Gungel concludes: “We can’t do [business] the way we did before,” emphasizing that they need to focus on the needs of their clients, all “with no new staff and limited funding.”
Of positives, Gungel says they have a greater sense of integration, and are “working more closely with the rest of the college.” Earlier, the Business Institute had been the designated area of the college to “go out and deal with businesses.” Now, the college as a whole is “looking for what are all the programs and services businesses need, how do we train people to get jobs, how do we figure out as a whole college what skills people need.” This effect has been amplified by the center’s move to campus. Gungel’s department has also been given responsibility for Highland’s conference center. “We will look to bring in national trainers, now that we have access to a facility where we can do that.” Gungel also mentions partnering opportunities including involvement with local chambers and economic development corporations, especially in Stephenson County where they meet every two weeks. “We are working much more closely. We are also co-sponsoring training with chambers,” Gungel reports, adding: “We’re all in this together, that is exciting.” Highland is doing two job fairs this year [arranged by Highland’s Career Center] instead of one because of the economy. Of exciting news, Gungel informs that Highland won a bid to be the fiscal agent for a program that involves about $2.5 million a year, which provides money for eligible clients to get training. The program is done jointly with Sauk Valley Community College and covers five counties. Gungel has more exciting news: They won a grant last June together with Sauk Valley Community College to be a Small Business Development Center (SBDC). “This is a marvelous partnership,” Gungel concludes. For more information about the Business Institute, call 815-232-1362 or visit Highland’s web site at www.highland.edu In Wisconsin, they “do it a bit differently.” Laura Mosena, Director of Economic Development with the Business & Community Development (BCD) Division at Blackhawk Technical College in Janesville, explains: “Primarily, only technical colleges deliver customized training for business and industry. The B/I centers here do the training, but are not recipients or conduits for grants. We do help link with the Department of Commerce and those at Job Centers who can help apply for grants. Blackhawk has written some grants in the past. The universities have Small Business Development Centers, and also do some training. The State of Wisconsin has some funding for training either directly to business or to Workforce and Job Centers.” On the economic downturn, Mosena comments: “Money and contracts are now going up, we don’t rely a lot on State funding, and are funded through contracts primarily.” She explains that “some businesses aren’t utilizing [these services right now],” adding that “this has caused us to become very creative.” She continues: “We have had a couple of years with less activity in B/I outreach. We did a survey, looking at creative ways to meet people’s needs, looking at who’s out there preparing their workforce for the future. We have to have the resources and foresight, but many are too caught up in dayto-day.” Mosena explains: “The B/I centers are also a well-kept secret in Wisconsin, despite us trying hard [to create awareness]. When there is turnover in organizations, there goes the knowledge of available resources. It is crucial to build personal relationships with client companies and help them see the big picture of all that you can offer. It’s preferable to know several people in an organization, do needs assessments, and even help prioritize, and thus show them how we can help them meet those needs.” Mosena sees their center as “brokers of training services more than specialists.” They have expertise available in a wide range of topics, which they will call upon depending on the needs of each client. While they have trainers on staff, they also use faculty, sub-contractors, and adjunct trainers. In-house resources deliver a third of their training. Mosena sees two major challenges ahead: First, “to understand in this particular economic downturn how to help businesses with economic recovery, to be part of the solution. This is a big challenge, because the answer may be different for each client.” Second, there is the challenge “to market effectively so that businesses know this resource is here to tap.” She also sees opportunities ahead in expanding their capability within manufacturing, and is hoping to get another manufacturing trainer. She stresses the importance of having the “expertise to walk them [manufacturers] through to be successful in the new economy we hope is around the corner.”
The BCD has recently added an outdoors-experiential training program to their repertoire. The Ropes Course is “an effective way to train and change through leadership, teamwork, communication, and problem-solving,” states Mosena. A recent, exciting project involved helping a company install highperformance, self-directed work teams. After putting all of their employees through the Ropes Course, the company wanted to maintain momentum by taking the teams even further and “bringing decision-making down through the levels where work is done.” Mosena explains that the company came to realize they wanted to examine and improve the way they do business. Another, recent exciting project involved helping a client develop a corporate university: “We have done this in three different places as community endeavors with sponsors such as chambers and the like,” explains Mosena. The BCD also does strategic planning—they can either train people to do this or consult in strategic planning. For more information about the BCD, call 608-757-7704 or visit their web site at www.blackhawk.edu/bcd
Surprising results are reported by Edward Knudson, Dean of the Business and Industry Services Division (BISD) at Gateway Technical College. Gateway’s main campus is located in Kenosha, but the Elkhorn campus also offers business and industry services. They have not seen a decline, which Knudson confirms “is unusual since generally, campus enrollment is up and B/I down” in this kind of an economy. “Some businesses in the area have closed,” he adds, but the center has not seen a decline in training. Several factors could contribute to this: “The organizations we deal with know to prepare their workforce for the economic upturn. New customers have also taken advantage because when they were really busy, they didn’t have time for training.” Knudson believes this sets them apart from most of the other technical colleges in Wisconsin, whom he believes “are seeing a decline or status quo.” On the economic downturn, Knudson comments: “The heart of the matter is that manufacturing [has] stabilized, but we don’t see it in employment. Weak companies are out of business, have moved, or have consolidated, and the ones we have now are survivors.” He likes to think that part of the reason for their survival is because they have helped them increase their productivity and competitiveness. “They are doing well but are hesitant about adding workers. The downturn has flattened out, but they are waiting to see. But there’s now a demand for products and services, and they do need to add staff to stay productive.” Knudson sees their greatest challenge as being the industry downturn itself. Looking ahead to the upturn, he thinks “the curve will be a pretty marked increase; the challenge will be meeting their needs.” Knudson adds that “current staff overload at the center is also a challenge; we are booked up to 70-75% capacity for next year easily.” With current demand and staffing, he adds that they “don’t have to go out and actively sell much.” There have been cuts in the college’s overall funding, and “the college is now looking to the B/I center to raise even more money….” Knudson is also dealing with the loss of three positions last year due to funding cuts. It’s “a challenge to become lean and mean,” he says, confirming that they did end up doing more with less. Knudson explains that “their operation is self-sustaining” and that they are not based on grants or State assistance. They do help companies write for workplace education grants, however. As an example, Knudson tells us they “were successful helping a Walworth County company get a grant to set up a learning center to prepare their workforce [which is mainly Hispanic].” “Grants are hard to get,” adds Knudson, informing that their Governor had recently released $10 million for training needs, which he expects will be in the form of grants. [Details were unknown at the time of the interview.] Of exciting news, the BISD received the prestigious Bellwether award last year for their efforts in workforce development, helping a Racine company set up a corporate college. Knudson believes this “shows their ability to deliver” and that it provides credibility. Of opportunities within manufacturing, he says that “companies are starting to look at lean manufacturing methods, cutting waste, processes also.” They are looking at how they can help these clients become more efficient, adding that they are partners with the Wisconsin Manufacturing Extension Partnership (WMEP). They are also developing new programs for the college because of their close relationship with industry. This includes an Industrial System Specialist associate degree, a two-year program currently offered at S.E. Johnson and delivered on site only. They are also involved with the Industrial Mechanical Technology associate degree, offered at the
college. “A side mission of the department is to, when we see a need, bring it back to the college,” explains Knudson. Knudson explains that they offer training “well beyond college courses,” depending on demand. Their plastics program is unique, for example. Another unique program involves bar coding. Knudson is also excited about the college’s new Tech Center in Racine. Of public offerings, they do professional development workshops—several in wastewater, another specialty. They also partner with the Department of Energy for workshops and with the Business Procurement Center to access federal contracts. For more information about the BISD, call 262-564-2990 or visit Gateway’s web site at www.gtc.edu
Over all, despite cuts in funding and training grants, loss of staff, reorganizations, and lower demand for services, the community college B/I centers appear to be adapting to the challenges of the economic downturn. It is also evident that they represent a viable resource for our area’s business and industry to tap into in order to better prepare themselves for the economic upturn. In the words of Preston Morgan: “An unique feature of the B/I staff is that they are a group of entrepreneurs that deal with budget cuts and other barriers before them in entrepreneurial ways. They put their thinking caps on, looking at how they can make it, seeing each [barrier] as an opportunity. None have closed down their services—they are still open for business. They are there to serve their business community using whatever resources they can find.”