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Payoffs of a College Education

Sunday, June 27th, 2010

Last month, the Department of Labor’s Bureau of Labor Statistics (BLS) released the 2010 version of its bi-annual Occupational Outlook Handbook. This information-packed compendium outlines the state of the U.S. labor market and draws on reams of data and expert opinion to project long-term (through 2018) growth prospects for about 300 distinct occupations. It examines likely growth and declines in the job prospects, how each job is likely to change, the types of education that will best prepare people for these jobs, how much these jobs typically pay, the degree of competition one may face in seeking a specific job and even how best to find and win these positions.

Not to oversell the value of this data, BLS issues all the necessary caveats. The most important are that it is examining long-term trends and that findings are subject to uncertainties inherent in any effort to anticipate, much less quantify the future. Most importantly, it recognizes that unanticipated shocks, such as a global Great Recession, the collapse in the value of a world currency, a major terrorist attack or the implications of an unprecedented environmental disaster could delay or totally derail any such projections. Who, for example could have predicted that when a freshman entered college during the boom years of the mid 2000’s, the world would be mired in the worst recession since the great depression and that newly minted graduates would face the highest unemployment rates since the Depression?

Despite the caveats and uncertainties, the Handbook contains reams of fascinating information which is necessary reading for anybody that is even thinking about working over the next decade. Not just students who are now entering school or graduates attempting to enter the workforce, but virtually anybody who might consider the prospect of changing jobs, or who might be laid off any time over the next decade.

The Lifetime Advantages of Education

Given the value of this information, my next few blogs will examine some of what I consider the most important trends for occupations that typically require a four-year college degree or higher. I am not even going to touch upon the voluminous sections that focus on jobs that typically require only high-school, or what the BLS considers “mixed” educations (those that require some education beyond high school, but less than a bachelor degree).

Why focus exclusively on occupations that typically require bachelor’s, and increasingly, graduate degrees? Chart 2 of the report explains this far more succinctly and poignantly than I ever could. As it shows, every additional level of educational attainment, from less than a high school diploma through professional degree, yields progressively higher, stair-step-like increases in average weekly earnings (from $419 per week to $1,441 in 2006 dollars), lifetime earnings and progressively lower prospects for unemployment. (One interesting anomaly is that those with doctoral degrees tend to earn slightly less money and have slightly higher unemployment rates than do those with professional degrees, albeit still significantly better than those with master’s degrees.)

Although the 2006 year benchmark for the BLS data portrays unemployment rates that appear almost ludicrously low in the current environment (6.8% for less than high school through about 1.5% for bachelor’s and above), the pattern holds—although the differences are just as dramatic, and much more depressing—in 2010. As shown in the BLS’s May 2010 unemployment ratings, these figures are now 15% and 4.7%).

Just as important as the job security and earnings potential attributable to higher levels of education, occupations that require a bachelor’s degree or higher have in the past— and will continue to enjoy—higher growth rates (15% compared with an average of 10%) than occupations with lower educational requirements. And most importantly to many, higher education levels are more likely to give one more flexibility in selecting (at least in normal economic times) the type of work they would like to do and result in more intellectually stimulating and psychically rewarding careers. This does not even begin to account for the non-job-related benefits of college, such as improved health, civic involvement and aesthetic appreciation.

So far, it sounds like a slam dunk. The more education, the better, more lucrative and secure the career. A number of people have gotten the message. According to a Census Bureau survey, the percentage of U.S. workers (defined for this purpose as employed people between 16 and 44 years of age) with college degrees has doubled over the last three decades and the percentage of high-school graduates who are enrolling in colleges and universities has reached an all time high of 70 percent.

The bad news is that this still represents less than 30% of workers (although another 22% has completed at least some level of college, including Associate degrees). In other words, half of all these working adults still have only 12 or fewer years of education at a time when many employment experts agree that all employees should have at least two years of post-high-school education.

Given the economic advantages of higher education, why would anyone not get a college, or even graduate degree?

I will briefly discuss this issue in my next blog (July11). I’ll then shift back to the college-level job data, drilling down into those bachelor-and-above-level occupations that offer the best employment opportunities, the highest earnings potential and the greatest opportunities for intellectual, and ideally psychic fulfillment.

Posted in 21st Century Careers, Business Trends, Creating the 21st Century Workforce, Economic and Political Forces, Economic Forces, Job and Career Opportunities, Societal Forces, Technology's Impact on Job Skills, Universities and Grad Schools, Workforce Trends | 2 Responses »
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IBM’s Plan to Transform University IT Education And Spur Student Enthusiasm in the Process—Summary

Sunday, May 2nd, 2010

This week’s blog is an overview of the findings of my new report, “IBM’s Plan to Transform University IT Education: And Spur Student Enthusiasm in the Process” in which I examine how IBM’s university alliances have evolved to emphasize education in areas that transcend IT skills, and the long-term benefits that IBM is likely to derive from this approach.

IBM started its Academic Initiative in the 1950s when it helped universities create Information Science programs. It extended this program around specific IT and engineering skills and then, in 2003 added a Service Science, Management and Engineering (SSME) initiative.

This SSME initiative went way beyond the university efforts of IBM—as well as most other vendors—that traditionally focused on “hard” science and technology skills, such as around programming, database design, electrical engineering and physics. SSME, in contrast, emphasizes the needs for universities to encourage multi-disciplinary education and the need to develop T-shaped skills, which combine deep skills in one or more fields, plus a high-level understanding across many others. IBM worked with universities to help professors expand the focus of their own courses and departmental curricula and, most importantly, to coordinate curricula across multiple schools within a university.

It, for example, encouraged and helped schools refocus engineering education around real-world problems and train engineers to work in multi-disciplinary teams. It also challenged business schools to evolve their traditional focus on management of manufacturing companies (which now accounts for less than 20% of developed-country economies) to developing a similarly rigorous management science around services (which already account for about 60%). Some 40 universities have are going further, creating truly integrated curricula that cross traditionally sacrosanct boundaries—integrating courses across schools including management, information science, engineering and social science. A few have even begun offering new cross-school degree programs around SSME-related themes.

Smarter Planet—Using SSME to Change the World

IBM’s huge, corporate-wide Smarter Planet initiative is, in many ways, the application of SSME to critical, real-world problems. SSME, after all, is an effort to create a science around decomposing and recomposing service-based processes, optimizing service supply chains and value chains and creating interdisciplinary research centers to design and optimize complex “service systems”—combinations of people, organizational networks and technologies that are aligned around a specific objective, such as designing and managing more livable cities, more effective healthcare systems and more efficient energy networks.

This effectively transforms SSME from an academic discipline into an instrument for addressing societal needs. It provides universities with the tools required to create education tracks and, eventually, degree programs around social goals—thereby attracting and making it easier for students who want to “change the world”. Moreover, IBM’s efforts to help shape educational curricula across Smarter Planet initiatives now transcends traditional information science, engineering and business schools to reach into areas including mathematics, architecture, healthcare management, public service, urban studies, and others.

Although such programs may not attract those students who are driven to become hedge fund managers or musicians, they do have the potential of attracting and providing “employment-ready” educations for millions of other students with similarly strong drives in other fields.

Engineering a Path to an IBM Job

Virtually all corporate university education programs share a common goal—to facilitate the education of students with the skills and perspective required to address the talent needs of the sponsor corporation, its customers and its partners. It’s easy to see the direct benefit that IBM can gain from programs that teach System z mainframe skills, that Intel can gain from multi-core architecture design programs or that Wal-Mart can derive from the University of Arkansas’ supply-chain optimization program.

But what benefits will IBM gain from encouraging universities to launch broad, non-vendor specific programs like SSME, healthcare management and transportation system design? The company’s logo isn’t on or necessarily associated with these programs, nor is IBM the first place most newly-minted graduates would look for a job to solve world hunger—unless, perhaps, you know about IBM’s Smarter Food program and its projects to increase agricultural yields, improve sustainability, reduce waste through the optimization of supply chains and improve food inspection processes.

That’s where some of IBM’s multiple university outreach programs fit in. The company has 4,000 University Ambassadors, typically IBM domain experts, who volunteer to work with universities to engage with faculty members, develop classes around real-world problems, deliver guest lectures, participate in seminars and otherwise engage with professors and students. The company also provides education tools, such as its INNOV8 Business Process Modeling (BPM) simulation game and is adapting many of its other courses to new learning methods, as through support of community portals and wikis, discussion forums, blogs, and Facebook and Twitter communities.

It also has an active university research program through which it funds professors and graduate students to conduct specialized research and all types of fellowship and internship programs in which it works with professors to identify high-potential students. It also partners with universities on IBM’s annual Battle of the Brains competition, the most recent of which attracted more than 28,000 students from 2,000 universities worldwide. These competitions engage interdisciplinary teams to tackle real world problems. The theme of these competitions? Would you guess they are typically aligned around one of IBM’s 21 (and growing) Smarter Planet themes?

IBM will certainly not attract or hire all of the graduates from SSME and Smarter Planet-theme programs. Nor does it want to. Although it hopes, and is positioning itself to identify and recruit some of the most talented graduates, its ultimate objective is to seed the world—its businesses, governments, NGOs and universities—with people who think about the world’s needs (and solutions) in much the same way that IBM does, who have been touched by IBM Ambassadors and programs, who understand IBM products, and who recognize that IBM is dedicated to addressing the same types of needs as are they.

This all leaves me with two questions. When will other corporations recognize the long-term payoffs of this broader approach to partnering with universities? And, how will they reach professors and students in the myriad fields that will be increasingly reshaped and redefined by IT?

Posted in 21st Century Careers, Business Trends, Corporate Social Responsibility, Creating the 21st Century Workforce, Education System and Institutions, Globalization, Immigration and Offshoring, IBM, IT Company Strategies, IT Industry and Companies, IT Industry Role in Education, Job and Career Opportunities, Skills Requirements, STEM Careers, Technology's Impact on Job Skills, Universities and Grad Schools, Workforce Trends | No Responses »
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The Great U.S. Tech Education Debate

Sunday, March 21st, 2010

On March 15, TechCrunch produced a very informative debate between Craig Barrett, former CEO of Intel and huge proponent of technology education, and Vivek Wadhwa, a Duke/UC-Berkeley professor who writes extensively on innovation, entrepreneurship and cross-border movement of technology talent. 

The debate was spawned by a Wadhwa comments in a Scientific American article that claimed there is no shortage of tech talent in the U.S. To summarize a debate, which must be read in its entirety to be fully understood, Wadhwa claims there is plenty of talent in the form of STEM (science, technology, engineering and mathematics) talent in this country. The problem is that much of this talent is in the form of postdocs (post-doctoral fellows) that are bottled up in a broken university technology education system, and in foreign-born PhDs who, once they receive degrees from U.S. universities, find it increasingly difficult or unattractive to remain in the U.S. If the artificial economic and political restraints were removed, and STEM PhDs were actually paid what they were worth, this talent would be unleashed and produce the type of innovation and jobs that the U.S. so desperately needs.

Barrett views things differently. Although he acknowledges that some postdoc PhD’s do not achieve their commercial market potential, he claims that this is due to their decisions to dedicate their efforts to the long, uncertain process of becoming tenured professors at research universities, rather than working at corporations. In his view, the real problem lies in our K-12 education system, which, due largely to the lack of qualified science and mathematics teachers, fails to ignite children’s’ imaginations around the opportunities in these disciplines and fails to provide a foundational knowledge for university study.

Wadhwa certainly acknowledges the limitations in the U.S. K-12 education system and the need to create “excitement about science and engineering at the national level and motivate our best and brightest to become engineers and scientists.” He, however, clams that the biggest problem is pay. The scientific community in general and the educational system in particular, simply do not pay enough to retain the best talent. These people are lured by the huge the huge rewards promised by the financial industry (such as becoming venture capitalists or investment bank “quants “), rather than become research scientists who drive U.S. innovation.

My Interpretation

While the debate is fascinating, it appears to me that Wadhwa over-generalizes the admittedly disturbing dilemma of postdocs. Just because some STEM PhDs remain in poorly paid fellowships (with hopes of earning valued professorships) rather than going to industry, it does not necessarily mean either that:

  • There are not enough jobs for STEM graduates; or that
  • STEM professions do not pay competitively.

True, not all STEM PhDs can become professors at prestigious research universities. On other hand, not all law school graduates can win U.S. Supreme Court clerkships or highly paid posts at premier white shoe law firms. That, however, does not stop students from overwhelming law school admissions offices. Nor do the short odds of becoming professional athletes, actors or musicians prevent millions of young adults from aspiring to these careers.

Even if there are not enough tenured professorships, PhDs who do need jobs can always “stoop” to work in the private sector. Nor should we confine the analysis of STEM jobs to PhDs. There are, after all, far more Bachelor and Master-level STEM graduates than there are PhDs. Most statistics show that newly minted STEM graduates have higher employment rates than other job categories (even during the recession) and that by far, the largest percentage of unfilled jobs utilize STEM-related skills. Moreover, starting salaries for these graduates remain among the highest of those for all degrees. As shown in a March 2010 Association of Colleges and Employers study, for example, engineering and IT jobs account for all ten of the top ten earning degrees. 

Although some segments of the financial services industry certainly pay more for a handful of the best graduates from the best schools, this cannot be viewed as the standard for all STEM jobs—just as Wall Street law firm salaries cannot be viewed as the standards for all JDs from all law schools. These numbers are too small, and their selection criteria too limited to apply to all graduates.

In sum, I generally agree with Craig Barrett that most people—especially young people—are driven as much by their passions as by the immediate opportunities for monetary rewards. There are, however, limits to this idealism. Pay must yield reasonably comfortable lifestyles and must at least be in the same ballpark as reasonably competitive fields. Although most STEM careers probably meet these criteria (except when compared with financial services, professional sports or entertainment), the big exception is in K-12 STEM education.

Unfortunately, it will take much more than competitive salaries to fix this country’s K-12 education system. Its problems are far too complex and ingrained to be solved by the education community alone. As I have discussed in many of my articles, solving these problems will require a huge amount of assistance from the private sector.

A number of private sector companies—especially IT companies, like Intel, Microsoft and IBM—are already doing great work in helping to improve education at all levels, from K through graduate schools. They are giving schools some of the tools and the training required to improve teaching and learning and helping them improve STEM curricula.

Some are even attempting to address the intense social and peer pressures against becoming “geeks” and “nerds” by demonstrating that STEM skills can be instrumental in achieving the goals of many young adults—to make a real difference in the world. As discussed in my report on IBM’s Academic Initiative, IBM is doing particularly interesting work in engaging student’s desire to make a difference in the world by showing how STEM skills are so critical to addressing some of society’s most pressing problems, as around smarter healthcare, energy and food supplies.

With all due respect to Intel’s wonderful commercials, it may be too much to hope to persuade kids to view scientists, engineers and mathematicians with the same admiration and awe as rock stars or professional athletes. It may, however, be possible to engage at least some part of their minds, psyches and self esteem around the idea of helping the world solve real problems. Perhaps someday, children focused on such missions may even earn the respect, if not necessarily the admiration, of their peers.

Posted in 21st Century Careers, Business Trends, Creating the 21st Century Workforce, Economic and Political Forces, Education System and Institutions, Global Forces-General, Globalization, Immigration and Offshoring, IT Industry Role in Education, IT Industry Trends, IT Industry's Role, Job and Career Opportunities, K-12, Political Forces, Skills Requirements, Societal Forces, STEM Careers, Technology's Impact on Job Skills, Universities and Grad Schools, Workforce Trends | No Responses »
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Tom Kucharvy’s 2010 Research Agenda

Sunday, January 17th, 2010

The IT Industry’s Role in Addressing the U.S.’ Technology Skills Gap: How the industry can secure its own future while providing unique value to employees, customers and society

Over the last six months, I have focused my research around two broad questions:

  • What types of skills will U.S. knowledge workers require to build careers that will deliver the highest value and be most sustainable in a global knowledge economy?
  • What must individuals, schools and corporations do to prepare for these jobs?

I recently wrote a report “IT Companies as Catalysts in Creating the 21st Century Workforce”, which I summarized in my January 11 blog. While working on it, I was particularly struck by three key conclusions:

  1. The particular risks that the IT industry will face from a paucity of required skills and the unique role the IT industry can play in creating the next generation workforce;
  2. The combination of foundation skills (including IT, Internet, math and communications) that all knowledge workers will require and how these skills can be most effectively taught and learned;
  3. The critical role that multi-faceted academic (especially university)/private sector partnerships must play in designing and delivering curricula that prepare knowledge workers for tomorrow’s careers.

I have certainly learned a lot from my research over the last six months and, hopefully, readers have valued from my posts and reports. Ultimately, however, this research ended up doing what most research does—it raised more questions than it answered. Some of these new questions are forming the foundation of my 2010 research agenda.

Here’s a peek into what I’ll be working on in 2010.

Q1 2010 Research Agenda

My 2010 research will continue to examine the changing nature of knowledge work in the 21st century and the requirements for the U.S. to build a workforce that will be truly competitive in the Global Knowledge Economy. I will, for example, drill down into a number of issues that I have touched on in my 2009 research including:

  • The skills and attributes individuals need to compete in a world in which knowledge work is increasingly defined by global competition, the automation of increasingly discretionary tasks, a deluge of data and information and the need to collaborate in increasingly fluid physical and virtual teams;
  • The relative roles of academia and the private sector in developing these skills and in creating and enabling the environments in which individuals can contribute ever higher levels of value;
  • The increasingly central role that the IT industry is playing in redefining work requirements and environments and the unprecedented opportunities for IT companies to shape the workforce in accordance with their and their customers’ needs.

Among the primary issues I plan to explore are:

  • Emerging best practices for recruiting, developing and retaining effective knowledge workforces
    • What approaches are proving to be most effective for companies—especially IT companies—in building and maintaining effective development, sales and services teams?
  • Opportunities for building high-payoff private sector/university partnerships
    • What expectations, contributions and commitments must each party bring to effective relationships, what best practices are emerging for collaborative curricula, course and platform development, research and recruiting?
  • Private sector roles in addressing primary and secondary math and science gaps
    • Although university education is critical, educators must instill interest and teach the basic math and science skills on which university educations can build. What role can IT firms play in enabling and facilitating these efforts? What rewards can they gain?
  • Using technology to improve the education process
    • Which types of technologies and techniques can be most effectively employed in schools and universities and how they can best be acquired, taught, implemented and managed?
  • The roles of IT service providers in addressing customer skills shortages
    • How can IT service providers best help clients evolve their own workforces, supplement their skills gaps and prepare new generations of business architects, technical professionals and CIOs?
  • Building and enabling an “innovation workforce”
    • What are the combinations of technology, management practices, collaborative processes and industry skills that will be required and what role can the IT industry play in developing these skills within companies, in conjunction with universities, and across ecosystems and technology and community clusters?
  • The roles of government in addressing—and exacerbating—the U.S.’s technology skills and innovation gaps
    • Can federal, state and local government organizations play productive roles in laying the foundations for addressing educational needs and enabling potential growth industries, or should they just stay out of the way?
  • The IT industry as test bed and role model for new private sector skills initiatives
    • IT vendors are among the leaders in establishing successful private sector/academic partnerships and in developing systematic employee skills development programs. What role can they play as role models for, enablers of or coaches in helping other industries?

Although my primary interest is in understanding the skills that will be required for sustainable 21st century careers, and the roles that IT companies can play in preparing U.S. knowledge workers for these careers, even I do not live on workforce development alone. After 30 years in the IT industry, I still have a deep interest in, and retain an irresistible drive to express my opinion on any of a broad range of industry-related issues. So, interspersed with blogs about jobs, skills, university programs and the globalization of knowledge work, you can also expect occasional discourses on important IT company initiatives, industry trends and especially, the unique opportunities for IT service providers to address a broad range of business and societal needs.

Posted in 21st Century Careers, Business Trends, Community/Other Colleges, Corporate Social Responsibility, Creating the 21st Century Workforce, Education System and Institutions, Globalization, Immigration and Offshoring, IT Industry and Companies, IT Industry Role in Education, IT Industry's Role, Job and Career Opportunities, K-12, Other Schools, Skills Requirements, STEM Careers, Technology's Impact on Job Skills, Universities and Grad Schools, Workforce Trends | 2 Responses »
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Universities as Catalysts for IBM’s National Roadmaps

Sunday, December 20th, 2009

My December 13 blog, IBM National Roadmaps: Creating National Workforce Development Strategies, described the process by which IBM works with countries to create national roadmaps—detailed development plans that identify the types of services in which countries, regions, states or cities have the foundation for comparative advantage and the steps that must be taken to realize these plans.

Although these roadmaps provide detailed recommendations and timelines for achieving them, what will prevent the roadmaps from “enjoying” the same ignominious fate of so many other consulting studies? 

Two things. First, when the study is a prelude to a potential investment by IBM, the initiative is formalized in a Memorandum of Understanding in which each party commits to defined investments and schedules.

More importantly, IBM has at its disposal a not-so-secret weapon—its University Alliances Program. As discussed in my October 2009 report, IBM’s Effort to Create the Workforce of the Future, IBM has made a huge investment in and is actively partnering with universities. It draws heavily on these relationships to turn its National Roadmap visions into reality.

The Batteries of Nations

IBM sees universities as “the batteries of nations”—the primary vehicles for creating and storing a country’s knowledge. Therefore, it selects clusters of some of each nation’s top research universities and partners with them to help:

  • Create the talent required under the roadmap by helping sufficient numbers of students develop the required skills;
  • Pioneer the services systems that will insure that the services developed in the nation will be effective, efficient and sustainable in a global services economy; and
  • Facilitate the creation of the national infrastructure that will be required for the country to achieve its development goals.

Talent development is the most fundamental of universities goals. IBM’s role is in helping these universities identify the types of skills that will be most required for tomorrow’s jobs, helping them create the curricula for teaching these skills and, where appropriate, volunteer IBM domain experts as advisors or adjunct professors. (See How IBM is Helping Universities Develop 21st Century Workforces for a specific discussion of IBM’s University Alliance program and its talent creation efforts.)

Developing the people required to man a world-class services center is a necessary first step. However, as mentioned, producing service delivery providers (and eventually managers and executives) for these centers provides little real value if the center is not capable of maintaining a long-term advantage relative to other countries with lower cost structures.

IBM, therefore, also helps local universities develop the skills required to design and continually upgrade the processes, technologies and organizational models surrounding the services that will be delivered in the country. It works with these universities to create Services Science, Management and Engineering, or SSME curricula, helps prepare professors to teach and lead research projects around these areas and helps the universities create the type of interdisciplinary research centers required to coordinate and drive research around these systems. And since no university (or even cluster of universities) is an island unto itself, IBM also helps create links among universities in other countries with complementary research focuses.

IBM also helps these universities address the host country’s infrastructure requirements by identifying the region within the country that will be most appropriate for a large service facility—typically an urban center with a critical mass of top universities, talent and the foundations for the required IT, communications and transportation infrastructures. 

It helps them identify the infrastructure enhancements that will be required and works with the universities to create research centers (such as around energy, communications or transportation) to focus on these needs. It even participates in programs designed to help countries implement such systems, as with India’s Great Mind Challenge, in which students (under the guidance of professors) donate time to help local governments automate traditionally manual functions.

Conclusions

IBM provides all these services worldwide and uses the same type process for helping design SSME curricula and services centers in all countries, including in the U.S., as for its new Iowa service center.

However, while IBM does appear to have more formalized models than most other companies for handling more of the pieces for helping countries execute on national roadmaps, it is certainly not alone. Many leading management consultancies perform similar analyses for national and regional governments and for corporations. Meanwhile, any large vendor preparing to make the huge investments associated with creating a large service center in a new country or state, will perform similar analyses and establish similar (albeit typically more narrowly focused) alliances with local universities.

Some such studies have even been performed for the U.S. A few have gone beyond studies, generating bi-partisan support and culminating in laws, such as the National Innovation Act of 2006. But given the incredible level of partisan controversy surrounding the last such study and law (The American Recovery and Reinvestment Act of 2009), it is unlikely that we will see many more such studies, not to speak of broad-based support of any type of meaningful plan, in the near future.

That’s a shame. While the U.S. is currently preoccupied with the need to create jobs, it appears that in our current state, we will be satisfied with virtually any job. We can worry later about whether that job will yield high value, provide a viable career path or be sustainable in an increasingly global economy and workforce.

Oh well, perhaps it is better not to have a plan. After all, if we don’t have a plan or a specific goal, any path will get us there. 

Posted in 21st Century Careers, Business Trends, Corporate Social Responsibility, Creating the 21st Century Workforce, Economic and Political Forces, Economic Forces, Global Forces-General, Globalization, Immigration and Offshoring, IBM, IT Company Strategies, IT Industry and Companies, IT Industry Role in Education, IT Industry Trends, IT/Business Consulting/Outsourcing, Job and Career Opportunities, Political Forces, Skills Requirements, STEM Careers, Universities and Grad Schools, Workforce Trends | 1 Response »
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IBM National Roadmaps: Creating National Workforce Development Strategies

Sunday, December 13th, 2009

I’ve written a lot about IBM workforce development efforts over the past few months. My July 27 blog, How IBM is Helping Universities Develop 21st Century Workforces, specifically examined the company’s Academic Initiative. My October 11 blog, IBM’s Role in Creating Tomorrow’s Workforce, as well as in a more detailed report, I assessed the company’s broader approach to workforce development.

IBM’s workforce development efforts, however, extend well beyond helping universities and its own employees prepare for the careers of the future. The company’s National Roadmaps, and associated Innovation Roadmaps, help entire countries develop and jumpstart broad, national workforce development programs.

National Roadmaps

National Roadmaps (and their state, local and regional corollaries) are government-backed economic development plans that define specific development objectives and identify the requirements for achieving them.

Although government bodies can create their own roadmaps, IBM’s Governmental Programs office can help. This integrated corporate group draws on resources from across the company to help governments create and lay the foundations for achieving long-term economic and societal strategies.

These roadmaps, on which IBM has worked with more than 15 countries (including the U.S., U.K., India, Brazil and Australia), can be initiated as a means of addressing current or anticipated needs, as part of an integrated economic development strategy or, more tactically, as a means of attracting IBM and other technology companies to increase hiring in their countries.

The first step in preparing these roadmaps entails working with the government body to identify the country or region’s unique advantages, their primary development opportunities and their highest-payoff approaches for developing sustainable jobs. IBM then uses its Global Business Services’ Component Business Model to identify the region’s current assets, gaps, hotspots (in which investments will yield the greatest benefits) and key performance indicators (with which to measure and assess progress).

The next step is to reach agreement on three primary requirements for achieving the roadmap’s goals. These requirements are the:

  1. Talent, people and skills that will be required;
  2. Infrastructure, including the educational, IT and communications requirements; and
  3. Investment, to ensure the availability of funds to address the agreed upon talent and infrastructure development commitments.

Innovation Roadmaps

An Innovation Roadmap is the necessary first step in any National Roadmap. It specifies the types of services that the country is aspiring to develop, the number of people that must be trained, the “services systems” that will be required to effectively and efficiently deliver services and the role that the government, IBM and other corporations and local universities will play in developing these service systems.

Services systems are the critical component of any effective service-based model. These systems consist of the combination of people, processes and technologies (either within individual, or across multiple organizations) for producing and delivering a service. It ensures that each service process is specifically defined, consistently performed and measurable.

This type of “scientific” service design ensures that each service instance (wherever, and by whomever it is performed) is consistent and that deviations can be immediately detected and addressed. Just as importantly, it allows each service to be continually evaluated and optimized to improve effectiveness and efficiency. This creates the potential for a type of continual improvement (something of a Moore’s Law of services) and for allowing individual countries to maintain comparative advantage relative to competitors with lower cost structures.

Where’s the Beef?

Interesting concept, but what keeps these Roadmaps from being just another academic study—a presentation to which all participants eagerly nod their heads and a nicely bound report that sits on the shelf to collect dust?

That is the subject of next week’s blog.

Posted in 21st Century Careers, Corporate Social Responsibility, Creating the 21st Century Workforce, Economic and Political Forces, Economic Forces, Education System and Institutions, Global Forces-General, Globalization, Immigration and Offshoring, IBM, IT Company Strategies, IT Industry and Companies, IT Industry Role in Education, IT Industry Trends, IT/Business Consulting/Outsourcing, Job and Career Opportunities, Other Schools, Political Forces, Skills Requirements, STEM Careers, Technology's Impact on Job Skills, Universities and Grad Schools, Workforce Trends | 1 Response »
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Preparing for Careers in Cloud Computing and Technical Analytics

Sunday, November 22nd, 2009

My last blog, Business Analytics as a High-Value Career Opportunity, examined the growth and career opportunities inherent in using analytics to improve business functions and processes. However, analytics applications—and the increasingly powerful tools that enable them—are also creating incredible new opportunities for graduates in a broad range of technical disciplines.

Two leading technology vendors, IBM and Google, in cooperation with a government agency, have taken an important step in helping students prepare for careers in these promising new fields. Not coincidentally, this work will help these vendors enhance the IT architectures, create the application development skills and build a base of developers that will instrumental in creating new-generation computing infrastructures and applications on which these vendors hope to build their own futures.

Building the Foundation for Large-Scale Internet Computing

There is nothing new about large-scale technical computing. Scientists and engineers have long used the world’s most powerful supercomputers to perform complex calculations on huge data sets—the type of computations required to model and visualize complex interactions and simulate outcomes.

What is new is that a growing portion of this work is migrating from huge, expensive and traditionally proprietary supercomputers and software, to distributed, cloud-based architectures that consist of clusters of hundreds or thousands of standard PCs, connected through open standard interfaces, and applications developed with open source tools.

In October 2007, IBM and Google partnered to create the IBM/Google Cloud Computing University Initiative, which provided several universities with access to a large cluster running the Hadoop open source distributed computing platform. The companies provided the required hardware, software and services and recruited six leading computer science research organization (University of Washington, Carnegie-Mellon, MIT, Stanford, U of C Berkeley and University of Maryland) to participate in a pilot program. Then, in February 2008, IBM and Google partnered with the National Science Foundation (NSF) to provide grants to academic researchers to explore large-data architectural issues and create applications that could take advantage of this infrastructure.

Technical Analytics Enablement

As of October 2009, the NSF had awarded $5 million in grants to 14 universities for various research projects.. Most of these projects have a dual goal of:

  1. Improving computer science students’ knowledge of highly parallel computing practices; and of
  2. Spurring research into specific aspects of large-scale, data-intensive cloud cluster architectures and application development.

The first award, to the University of Washington, has the broadest, most foundational goal. It is intended to help jumpstart the widespread teaching of large-scale cluster computing to large numbers of computer science and software engineering teachers and students across multiple undergraduate universities. It is creating a 2.5 day workshop that provides course material and curricular support that professors at undergraduate universities around the world can use to develop their own courses.

Most awards, however, are intended to fund advanced research into specific particularly knotty problems that must be addressed for cloud to become a ubiquitous platform. A number of the initial grants focus on search—the primary horizontal application of cloud technology and the foundation of Google’s market position. For example, Carnegie-Mellon, University of California-Santa Barbara and University of Massachusetts-Amherst were each awarded NSF grants for developing more efficient methods of searching and managing queries across the Web. University of California-Irvine received one for research intended to improve the efficiency and accuracy of fuzzy search queries on large text repositories.

A number of awards were focused on issues that underlie a broad range of high-performance, technical computing problems. Examples include grants to:

  • MIT, Yale and University of Wisconsin-Madison for studies of tradeoffs associated with using different approaches for analyzing and extracting information from very large collections of data across large-scale clusters of parallel computers; and
  • University of California-San Diego for improving the performance of dynamic provisioning of data-intensive applications.

But while most grants focused on broad, infrastructure-related issues, a few delved directly into specific scientific analytic applications. For example:

  • One of the University of Washington’s three projects focuses on astrophysics, particularly the analysis of astronomical images, space-time overlaps and the simulation of collisions of galaxies;
  • University of Washington and University of Utah each won grants for projects that will allow ad hoc, longitudinal query and visualization of massive ocean simulation results at interactive speeds;
  • University of Maryland-College Park is conducting a project to develop parallel algorithms for analyzing DNA sequencing; and
  • University of California-San Diego’s aforementioned dynamic provisioning research will include a focus on protein matching in bioinformatics.

Helping Students—Helping Themselves

The IBM/Google Cloud Computing University Initiative, as mentioned, has an immediate objective of stimulating research into areas that will be instrumental in establishing cloud as a ubiquitous computing platform. A few are intended to promote research into specific technical disciplines—some of which may have direct commercial application, others not.

But regardless of the immediate commercial opportunities, many of these projects will serve as platforms for subsequent research by hundreds of other universities and corporate research labs. Research findings, for example, will be published in scientific journals, and be disseminated though conferences and by graduates who move to other universities and into the private sector. Some of the projects will result directly in usable products, such as code that will be available under open source licenses.

All of these projects, however, address another of the supporting vendors’ longer-term goals—to create a generation of students that understand the value and application, and will help drive the adoption of cloud-based computing.

Some of these students—particularly those in disciplines such as computer science and software engineering—are training to become the systems and application architects of tomorrow. IBM and Google will work with professors to identify the most promising of these students, offer them scholarships and internships, and attempt to recruit them into their organizations. (See my November 11 blog and report on IBM’s Academic Initiative (IBM’s Role in Creating Tomorrow’s Workforce) to understand how such efforts fit into that vendor’s broad employee development strategy.)

But only a small percentage of those students who benefit from the Cloud Computing University Initiative efforts will end up working for IBM or Google. Many are likely to end up in working for IT organizations or for other vendors—including competitors of IBM and Google. Meanwhile, students who learn to apply parallel computing tools to other disciplines, such as astrophysics, biochemistry or environmental studies, are likely to apply these techniques to their own private and public sector careers.

All of these graduates, however, can provide at least indirect benefits to the founding vendors. Those who work in customer IT departments will help drive demand for cloud-based solutions. Even those who join competitors have the potential of helping to expand the overall cloud market.

In the end, however, the founding vendors, and all private and public sector participants in all types of technical research, are likely to gain the greatest value from those students in non-IT-related technical disciplines—those that learn to apply high-performance, cloud-based computing clusters to drive innovation in their own fields. Their work, combined with the expansion of the IBM/Google Cloud Computing University Initiative into other academic departments—everything from finance and marketing, though metallurgy and nanotechnology, to architecture and urban planning–will spur new applications, and new innovation in all types of fields.

Although not all this work will directly benefit IBM or Google, it will certainly help to jumpstart the cloud computing market. This will not only provide indirect benefits to the two vendors, it will also create new career opportunities for thousands of IBM/Google Cloud Computing University Initiative graduates plus millions of others that end up in new jobs that will be created by these graduates’ innovations

Posted in 21st Century Careers, Business Trends, Creating the 21st Century Workforce, Education System and Institutions, Google, IBM, IT Company Strategies, IT Industry and Companies, IT Industry Role in Education, IT Industry's Role, Job and Career Opportunities, Skills Requirements, STEM Careers, Technology's Impact on Job Skills, Universities and Grad Schools, Workforce Trends | 4 Responses »
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Business Analytics as a High-Value Career Opportunity

Tuesday, November 17th, 2009

A number of my previous blogs have discussed the importance of quantitative skills in preparing for the jobs of the 21st century. These skills are becoming increasingly critical for all types of jobs in all types of industries. Some industries (such as banking and insurance) and job categories (including accounting, finance and engineering) are almost inherently quantitative.

However, a growing number of jobs—both blue collar and white collar—in virtually every industry increasingly require quantitative skills. This is true whether you are looking for a job in:

  • A marketing department, where you will be increasingly required to interpret customer preferences and trends from vast quantities of real-time point-of-sales data or Internet usage patterns;
  • Government or white-collar law enforcement, such as in identifying hidden patterns to detect increasingly sophisticated fraudulent schemes;
  • A research laboratory, where you are trying to discover the next blockbuster drug or design a green building; or on a
  • Manufacturing plant floor, where employees must continually monitor, interpret and determine how to respond to feedback from increasingly automated, computer-controlled facilities and processes.

While all type of jobs will increasingly require quantitative skills, the highest value, most differentiated use of these skills will be in applying increasingly sophisticated analytics and techniques in a way that will bring new insight to, and in a few cases, totally transform, your particular field. (See, for example, Merv Adrian’s Business Intelligence blog for up-to-date discussions of opportunities and trend. 

Business Analytics Goes Mainstream

Business analytics offer some of the most numerous and diverse of all analytics opportunities for graduates with the requisite skills.

After all, while all companies are already swamped with data, we “ain’t seen nothing yet”. The Internet is spawning as much new data every year as the world has compiled cumulatively, from the dawn of numbers to the invention of computers. Companies are capturing instant information from virtually every consumer transaction and are in the process of “instrumenting” (using sensors to continually capture real-time information from) virtually every type of device in the physical world. Unfortunately, most of this data remains unused and even when executives want to use it, they find the data to be incomplete, inconsistent, incomprehensible or otherwise suspect.

Not surprisingly, vendors from virtually every segment of the IT industry are rushing to help—launching data warehousing solutions, information analysis applications and consulting and outsourcing service offerings.

IBM, for one, has been linking mathematicians and scientists from the company’s research organization with Business Consulting Services consultants for years in an effort to help clients address particularly gnarly problems. It dramatically expanded its own analytics software offerings through acquisitions of companies including Cognos and SSPS. In April 2009, it announced the creation of a new 4,000+ consultant service line—Business Analytics and Optimization Services. This group will use advanced, real-time analytics to help clients across 17 different industries (especially financial services, distribution, industrial, communications and public sector) help clients across 17 different industries (especially financial services, distribution, industrial, communications and public sector) address analytical needs across all business functions (marketing, finance, supply chain, HR, etc.) to drive better, more predictive business decisions and to transform business processes and business models.

IBM is hardly alone among IT vendors in dramatically expanding its business analytics offerings and capabilities. Over the last year, for example:

  • Hewlett-Packard commercialized the data warehousing technologies it inherited from its acquisition of Compaq and combined it with enhanced business intelligence consulting services to create its new Business Intelligence software unit.
  • IT software leaders, including SAP and Oracle, which already had significant analytics capabilities, complemented previous major analytics software acquisitions (Business Objects and Hyperion respectively) with more specialized analytics acquisitions and expanded consulting capabilities.
  • Analytics specialists, such as SAS Institute and a number of smaller firms, including KXEN and Angoss, are being increasingly rumored as acquisition targets of larger firms looking to enhance their own analytics bona fides.

Meanwhile, independent systems integrators, such as Accenture, CSC, Deloitte and Capgemini, are expanding their own analytics services offerings and a growing number of corporations across all industries are developing dedicated analytics staffs and incorporating deeper analytics capabilities across current business units.

Skills Requirements

The dramatic growth in business analytics is creating all types of new career opportunities. For example, it will require highly qualified software architects and developers to create the tools to analyze vast quantities of data and the systems architects to create the increasingly cloud-based systems that will be required to process it.

More importantly, it will require huge numbers of people who understand the type of information that companies will need from the analytics applications and how to capture, present and apply this information to the needs of the business. This requires people with skills in areas including:

  1. Information strategy, as to define a company’s information agenda and determine the type of data that will be required;
  2. Enterprise information integration, to ensure the integrity of information used in data warehouses and analytics applications;
  3. Business performance management, to determine the most effective way to present information to users;
  4. Enterprise content management, to integrate data and workflow into information management strategies;
  5. Advanced analytics, to ensure that information can be used in a way that will allow a company to predict and proactively address needs in real time; and
  6. Business process optimization and transformation, to reinvent processes in a way that will allow the organization to quickly, effectively and efficiently respond to changes and make mid-course corrections.

Most importantly, it will require that virtually every employee, in any function and in any type of organization, must understand the value of analytics to their company, the type of information that will allow them to better perform their jobs, and how to gain access to and make the most effective use of this information.

Posted in 21st Century Careers, Business Trends, Creating the 21st Century Workforce, Education System and Institutions, IT Industry and Companies, Job and Career Opportunities, Skills Requirements, STEM Careers, Technology's Impact on Job Skills, Universities and Grad Schools | 2 Responses »
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IBM’s Role in Creating Tomorrow’s Workforce

Sunday, October 11th, 2009

My October 5, 2009 blog, Technology Vendors‘ Roles in Addressing the College Conundrum,  assessed some of the primary changes that colleges and universities must undergo to help prepare their students to find and to succeed in the knowledge jobs of the 21st century. It explained the critical roles the private sector can play in helping colleges make these changes and why IT vendors are particularly well suited to help.

My July 27, 2009 blog, How IBM is Helping Universities Develop 21st Century Workforces, provided a high-level overview of IBM’s Academic Initiative and Global University program. I recently completed a deeper examination of IBM’s initiative and wrote a more detailed report (IBM’s Effort to Create the Workforce of the Future) that explained these programs within the context of IBM’s employee development program. In this report, I spelled out the benefits the programs will deliver to universities, students, IBM partners and customers—and to IBM itself. The entire report is available for purchase on my web site. To whet your appetite, here’s a summary of the report’s primary findings.

IBM has been one of the leaders in partnering with universities and other organizations to ensure the availability of the type of IT professionals required to build, run and optimize the types of IT infrastructures and solutions that have become the foundations of 20th century organizations. While it is continuing with these efforts, it is now focusing its primary efforts on partnering with universities and adapting its own employee development models to ensure the availability of a new type of professional—what it calls a “T-shaped person”.

These T-shape people, whether IT professionals, business professionals or public service professionals, must be interdisciplinary generalists, rather than narrowly-focused specialists. Although they must certainly have deep skills in specialty (the vertical axis of the T), they must also have sufficient understanding of a broad range of related disciplines (the horizontal axis) to allow them to see contextual linkages, to constructively participate in interdisciplinary teams and to continually adapt their visions and their contributions to rapidly changing conditions and needs. But whatever the individual’s specialty (whether IT, business, scientific or any other field) all must understand how to apply IT tools to the needs of their profession.

Therefore, IBM is adapting how it works with universities to leverage its traditional relationships with IS, engineering and business departments, into all types of disciplines, from psychology, through public affairs through medicine. These new relationships are multi-faceted, including everything from help in designing courses and curricula; providing required hardware and software; funding research, scholarships and internships; and helping to create interdisciplinary research centers that bring together academics, businesses and government officials to address gnarly problems in areas including transportation, energy, food safety and environment.

IBM’s initial goal in creating T-shaped professionals and research centers is to feed the company’s own need for qualified people. It selects future employees from among this expanded pool of graduates and is adapting the company’s internal employee development programs to transform these interdisciplinary graduates into solution-focused professionals who can proceed through any of five broad career paths.

But if these efforts go as anticipated, they will accomplish much more. They will help promote independent research that is aligned around IBM’s primary market objectives, provide solution-focused employees for IBM customers and partners and ideally inspire a new generation of students to understand how they can use IT (ideally IBM’s IT) to bring new value to their own fields. Ideally, many of these fields will align with the rapidly expanding sets of market needs being addressed under IBM’s Smarter Planet initiative. It can, in other words, be a win-win proposition, helping everybody, with the exception of IBM’s competitors.

Posted in 21st Century Careers, Business Trends, Corporate Social Responsibility, Creating the 21st Century Workforce, Education System and Institutions, IBM, IT Company Strategies, IT Industry and Companies, IT Industry Role in Education, Job and Career Opportunities, Skills Requirements, Technology's Impact on Job Skills, Universities and Grad Schools, Workforce Trends | No Responses »
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Technology Vendors’ Roles in Addressing the College Conundrum

Sunday, October 4th, 2009

My September 27 blog, Leveraging University Education into Careers for the New Economy, suggested how college students can structure or supplement their coursework to make them more attractive to potential employers. Many of these approaches, such as selecting appropriate majors and minors, independent study programs and thesis topics and developing strong social networking competencies, are generally within students’ own control. (Even these approaches, however, are dependent on the college/universities’ ability to fund these classes—a condition that can no longer be assumed.)

However, while many of the requirements for creating university experiences that will better prepare students for the knowledge jobs of the future are within the control of students, many others will depend on proactive efforts by the colleges. These include:

  • The teaching of math, statistics and the use of IT tools as core academic offerings and the deep integration of these tools into all coursework;
  • An increasingly interdisciplinary design and delivery of courses; and
  • Availability of proactive career counseling to help students identify career options, career pathways and the types of work that will best prepare students for opportunities in their chosen fields.

Unfortunately, many of these changes are totally antithetical to many universities’ organizational structures and cultures. For example, as I discussed in my previous blog, most universities are organized in discrete stovepipes that implicitly discourage cross-disciplinary collaboration. Professors, meanwhile, are typically hired and rewarded on the basis of their depth of knowledge in their particular specialty (rather than as interdisciplinary thinkers) and many consciously shun practical applications of their work and involvement of corporations in tuning curricula. On the other hand, most university career centers are culturally attuned to these objectives. However, they often lack the number of career counselors and the degree of interaction with the companies most likely to hire their graduates.

What’s a university to do? How can it overcome the inherent challenges of culture, tenure and a lack of resources to provide their students with the help required to prepare them for the careers of the future?

One approach is for universities to actively solicit the help of corporations that are in a position to hire graduates. Many corporations already have large, well established and very active university relationship programs. Some, such as JP Morgan Chase and Wal-Mart, help universities (Syracuse University http://globaltech.syr.edu/ and the Universities of Arkansas and Arizona respectively http://sustainability.uark.edu/15347.php) develop and fund programs under which the university creates and teaches courses and conducts research that are aligned to the company’s needs, and the companies provides internships and job opportunities for selected graduates.

But while all type of companies in virtually every industry offer programs to help universities prepare students for new jobs, as explained in my September 5 blog, The IT Vendor’s Employee Readiness Burden, I believe that IT vendors are particularly well suited to help. Why? Through their products and practices, these vendors are playing disproportionately large roles in shaping the environments in which tomorrow’s graduates will work. These vendors, for example, are developing the technologies that will redefine the nature of knowledge work and pioneering practices, such as globalization and seamless collaboration that will determine the type of students who will be best suited for different types of work. Just as importantly, IT vendors will also have some of the first and greatest needs for graduates with these new skills.

I recently wrote a report (IBM’s Role in Creating the Workforce of the Future) which talks about how IT vendors are helping universities in a myriad of ways. I’ll also continue to follow this topic in future blogs.

Posted in 21st Century Careers, Business Trends, Corporate Social Responsibility, Creating the 21st Century Workforce, Economic and Political Forces, Economic Forces, Education System and Institutions, Global Forces-General, IT Company Strategies, IT Industry and Companies, IT Industry Role in Education, Job and Career Opportunities, Skills Requirements, STEM Careers, Technology's Impact on Job Skills, Universities and Grad Schools, Workforce Trends | No Responses »
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