A Process for the Analysis of Industry Clusters in the Southwest by warrent


									                                     Attachment 5.2.A

                                  A Process of Strategic Planning
                   for the Workforce Investment Board of San Luis Obispo County

   In response to a request from the Workforce Investment Board of San Luis Obispo County,
the Research Group of the Lancaster County Workforce Investment Board proposes a five-part
process to meet the goals of the Board which include…

      Identification of industry clusters and subclusters in the San Luis Obispo County
       Workforce Investment Area that indicate a regional competitive advantage, potential for
       growth, and/or employment opportunities;
      Projections of future growth and opportunities for these clusters;
      Suggestions about how to reach out to industry to provide value-added services; and
      Integration of these findings into a broader strategic planning process for the Area.

   This process includes…

      Gathering and summarizing the data which is indicated above;
      Bringing the initial information to decision-makers and facilitating a process that will
       lead to the choice of priority industry clusters;
      Additional data gathering on the chosen clusters that will detail occupations and career
       ladders and produce information that can be used for staff, Board, and community
      Consultation with the Board and its staff regarding the incorporation of findings into the
       strategic and operational planning processes of the Board; and
      Additional consultation with the Board on its overall strategic and operational planning

Project Strategy

   Over the last five years, the Research Group of the Lancaster County Workforce Investment
Board has provided this kind of analysis for at least eight of the 22 workforce investment boards
in Pennsylvania. We continue to provide regular analysis for 15 of the 67 counties. We
regularly do similar analyses for economic development entities and private companies in
Pennsylvania and around the country.

   Not only does the Group use information provided by the PA Department of Labor and
Industry but it also uses the Strategic Advantage software for source data and economic
modeling. In addition, it uses proprietary definitions of clusters that have been shown to be
effective in analyzing local economies. The process defined below is based on the
“Understanding Your Industries” assessment process developed by the State and Local Policy
Program at the Humphrey Institute at the University of Minnesota. Its theory base draws heavily
on the work for Michael Porter from Harvard University.

   Scott J. Sheely, Executive Director of the Lancaster County Workforce Investment Board, is
also the primary researcher within the Research Group. Sheely is a doctoral candidate in adult
education at Penn State University and has led a variety of research initiatives over the years.
Interns that staff the Group are economics majors at schools and universities that include
Millersville University, Franklin and Marshall College, Indiana University of PA, Yale
University and others.

   This is a tried and true process which the Research Group has conducted on behalf of many
groups (a customer list is available on request).

Project Design, and Outcomes

   During the first phase of the process, the Research Group will gather data and prepare it for
presentation to decision-makers who are part of the SLO Board. The outputs of this phase will

      A chart of key indicators (growth, percentage growth, location quotient, change of
       location quotient, competitiveness employment change, average wage, and change in
       average wage) for 20 industry clusters that the Research Group has determined normally
       account for 98% of all employment in a local economy;
      A three-dimensional bubble chart graph that plots all the industry clusters using size,
       percentage growth, and location quotient;
      A list of high-growth, highly-competitive drivers (subclusters) for each of the industry
      A projection of growth in all 20 clusters between 2007 and 2017;
      A narrative analysis with recommendations.

   This information will be summarized and put in front of the appropriate group of the SLO
Board with the goal of helping that group prioritize the choice of the industry clusters in which
the Board wishes to invest. This second phase will involve one in-person meeting with this
group and as many telephone conferences as are needed to help the group make a decision.

   Phase three begins after the local committee makes the choice of priority clusters. The
outputs for this phase include…

      An analysis of staffing patterns (occupations and career ladders) in the priority clusters;
      A listing of major employers in the priority clusters;
      A PowerPoint-based presentation that summarizes the information that has been collected
       and which can be used in the public presentation of this information.

    Consultation with the staff to the Board is the next phase of the project. The goal here is to
assure that the results of the study are integrated into the regular planning processes of the Board
at the strategic and operational levels. We see this integrating well into the final phase of the
project which involves the on-site facilitation of a strategic planning event that will lead the
Board to the development of a Strategic and Operational Plan for the Area.


   Our price of $10,000 plus travel includes all of the outputs described above and suggests two
on-site visits to SLO. The price of additional on-site visits can be negotiated. Virtually all of the
costs are related to staff costs and travel.


   Phase one can be completed in two weeks. Phase two depends on the availability of on-site
decision-makers and the ensuing process of choosing priority clusters. Phase three can be
completed in four-six weeks. The timing for phase four depends on the schedule of SLO staff.
We would expect to have the project completed by the end of summer 2007.


   See the attached for examples of the outputs described above.

                  Attachment 5.2.A

               A Process for Strategic Planning
for the Workforce Investment Board of San Luis Obispo County

                     Research Group
       Lancaster County Workforce Investment Board
                    313 W. Liberty St.
                        Suite 114
                   Lancaster, PA 17603

                        Scott Sheely

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