SHAPING TALENTS New business prospects, competitiveness and improved employability through lifelong learning

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1 SHAPING TALENTS New business prospects, competitiveness and improved employability through lifelong learning

2 SHAPING TALENTS New business prospects, competitiveness and improved employability through lifelong learning Experiences from the Metal, Engineering and Technology-based industries

3 Members Australia Austria Belgium Croatia Denmark Finland France Germany Italy Italy Latvia Lithuania The Netherlands Norway Portugal Slovenia South Africa Spain Sweden Switzerland Turkey United Kingdom Observers Bulgaria Hungary 2 SHAPING TALENTS SURVEY CEEMET

4 Who are WE? CEEMET is the European employers organisation representing the interests of the metal, engineering and technology-based industries. Its members are national employers organisations and federations, representing 200,000 member companies across Europe. The vast majority of them are SMEs, directly providing some 13 million jobs and covering all products within the metal, engineering and technology- based sector. Together these companies make up the largest industrial sector in Europe, both in terms of employment levels and value added, and are therefore vital in driving forward and securing Europe s future prosperity. Based in Brussels, Belgium, CEEMET is a recognised consultation body and discussion partner of the European Institutions, BusinessEurope, fellow associations from the MET and related industry sectors (ACEA, ASD, CESA, CLEPA, ECEG, EUROFER, FIEC, ORGALIME, Digital Europe), European-level trade unions (IndustriAll European Trade Union), the International Labour Organisation (ILO) and the International Organisation of Employers (IOE). One of CEEMET s key priorities is education and training, communicating the very important role and stake that employers in our multifaceted industry have in this area. Methodology The latest CEEMET study conducted in addressed skills mismatches looking specifically at initial vocational education and training (ivet) and improving cooperation between education institutions and businesses. As a follow-up to the first project focusing on ivet, CEEMET members decided to launch a Europe-wide project with a view to gaining a deeper understanding of how companies approach skills strategies and, on that basis, support companies efforts to address their skills needs in cooperation with education and training institutions across Europe. Between June 2011 and May 2012, a company survey was distributed to CEEMET s national member association network focusing on continuous education and training (CET) to explore the challenges of MET companies and to provide inspiration and evidence of good practice initiatives based on these examples to overcome these challenges. The Shaping Talents survey is divided into two parts. The first part highlights the analysis, conclusions and recommendations from the MET employer s perspective regarding the most common challenges associated with CET. The second part constitutes a selection of good practice examples to be used as inspiration and a guideline for companies. SHAPING TALENTS SURVEY CEEMET 3

5 ABOUT THE PROJEcT In the face of constant development in innovation and technology, changing consumer demands, demographic trends and global competition, companies in the metal, engineering and technology-based industries experience rapidly changing competence needs. As companies skills requirements change, they need to invest in skills, knowledge and competence (SKC) development, adopting a strategic approach to human resource development to stay competitive. Taken together with economic and demographic trends, this has become a pressing challenge for many companies in the MET industry. This report will take a closer look at the SKC challenge in the MET industry, providing sector-specific knowledge and identifying strengths and weaknesses, highlighting the challenges faced by SMEs in particular, and putting forward good practice examples of workplace learning. 4 SHAPING TALENTS SURVEY CEEMET

6 ForeWorD The MET-industry is the heart and engine of Europe s economic strength. It creates technology solutions and quality products that the world needs. It is responsible for our export successes. It creates employment opportunities and stabilises the societies we live in. As of today, Europe has preserved this strength despite increased global competition and despite the turmoil of the financial markets. One of the most significant long-term challenges our industries faces stems neither from a lack of finances nor from a lack of market share ; it stems from the demographic changes we face. Our societies grow older and so do our employees. Our societies will become smaller and so will our workforce. To ensure future sustainable growth and continued competitiveness, we need to stabilise our skilled workforce despite the rapidly changing demographics. The demographic changes are cause for concern, especially when coupled with a decrease in students opting for a VET education as well as the general lack of STEM skills we are witnessing today. Either the MET industries will find a way to adapt to these changes or our future economic success will continually deteriorate. How do we secure a talent pool strong and deep enough to keep Europe s MET industry on the track of sustainable success and how do we ensure that education and training meets labour market needs? By focusing on education, the continuous training of our workforce and a corporate culture that structurally supports these lifelong educational processes. This study, a collective work with contributions from all of CEEMET s members, highlights ways, means and practices by which our companies can cope with new skills, knowledge and competence demands linked to technological development, international competition, and demographic change by focusing their efforts on the ongoing education and training of their entire workforce. For Europe and its companies, there is no simple solution to ensuring the competitiveness of its workforce. However, meeting these challenges will be of the utmost importance for the future of the MET industry in Europe. Let s get started. Sincerely, Martin Kannegiesser President CEEMET SHAPING TALENTS SURVEY CEEMET 5

7 contents List of abbreviations...7 PART 1 1. Introduction... 9 The importance of continuous education and training for competitiveness, growth, and employment BaCKGround...10 New competence needs Training as an investment A shared responsibility Transformation and restructuring for international competitiveness Challenges related to training What challenges are the MET Industry facing with CET and how can they be managed? Shortage of basic skills Continuous education and training provision does not always meet company or learners needs Lack of information need for more strategic business and competence development and effective tools to assess training needs, efficiency and impact of training Lack of culture or motivation for continuous training and investment in learning Management of training funds Training in an economic downturn Meeting the challenge of replacement demand FOCUS : supporting the competitiveness of SMEs Challenges for SMEs in anticipating skills needs Developing a multi-skilled workforce to reduce the dependency on specialists Enhancing cooperation between industry and VET providers, promoting MET sector skills Conclusion SHAPING TALENTS SURVEY CEEMET

8 PART 2 7. good practice examples...22 Austria...27 Australia...28 Belgium...32 Switzerland...35 Germany...36 Spain...43 Finland...51 France...60 Italy...64 Latvia Norway...69 Netherlands...70 Portugal Slovenia...76 Sweden Turkey...87 United Kingdom bibliography...90 LIST OF ABBREVIATIONS 1. CET- Continuous Education and Training 2. cvet- continuous Vocational Education and Training 3. e-learning- electronic learning 4. ESF- European Social Fund 5. HRD- Human Resource Development 6. I-training- Intensive Training 7. ivet- initial Vocational Education and Training 8. LLL- Lifelong Learning 9. MET- metal, engineering and technology-based 10. MNE- Multinational Enterprise 11. R&D Research and Development 12. ROI- Return on investment 13. SKC- Skills, Knowledge and Competences 14. SME- Small and Medium-sized Enterprise 15. STEM Skills- Science, Technology, Engineering and Maths Skills 16. VET- Vocational Education and Training SHAPING TALENTS SURVEY CEEMET 7

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10 PART 1 1. Introduction The importance of continuous education and training for competitiveness, growth, and employment The metal, engineering and technology-based (MET) industry is a key driver of Europe s economy and skilled and motivated people are pivotal in keeping manufacturing innovative and competitive in a globalised market. All in all, the European manufacturing industry accounts for over 75% of total European exports, 80% of all European R&D investment, and 16% of total EU employment. 1 2 Within industry, the MET sector represents the largest industry sector in Europe in terms of employment and value added. Among the MET companies are numerous global leaders, including well-known multinational enterprises (MNEs) as well as a great proportion of small and medium-sized enterprises (SMEs). Together these firms form highly efficient and flexible European innovation systems, creating positive horizontal and vertical spillovers and linkages to the entire European economy. Today, it is estimated that every job in the manufacturing industry creates on average one additional job in the service sector. 2 Overall, the MET industry greatly contributes to ensuring the sustainable competitiveness of the European economy by developing cutting-edge technologies and customer-oriented solutions to tackle the global challenges of today and tomorrow, such as sustainable energy and climate change. The ability to do this is, to a large extent, dependent on having a skilled and motivated workforce. As companies skills requirements change, they therefore also need to invest more efficiently in skills, knowledge and competence (SKC) development, adopting a more strategic approach to human resource development to stay competitive. Taken together with economic and demographic trends, this has become a pressing challenge for many companies in the MET industry. This report focuses on learning while working and is the outcome of a project conducted by CEEMET and its national members, identifying the most common 1 European Commission (2010). European Competitiveness Report 2 European Commission (2011) Background on Sources of growth issues that companies in the metal, engineering and technology-based sectors are faced with in regard to continuous education and training (CET). The report looks at why CET is imperative to the competitiveness of European industry as well as to individual employability and explores a variety of initiatives that companies take in order to further the skills and competences of their employees. It highlights some of the common challenges they run into and puts forward good practice examples and recommendations to stakeholders, including companies, for future activities, bringing new and innovative solutions in the MET sector to the fore. Apart from playing a central role in lifelong learning policies, workplace learning contributes to economic renewal strategies and flexicurity agendas and is therefore of pivotal interest also at the European level. Europe s aspiration to become the most competitive and knowledge-based economy in the world strongly depends on companies and individuals capabilities to adapt to future competence needs as well as the education and training systems ability to provide services that match labour market needs. It is in the interest of all actors at all levels to ensure that the right framework conditions are in place for companies to be able to provide adequate SKC development measures and for individuals to be able to effectively engage in training. Hence, this report is also a timely contribution to the Europe 2020 Strategy and the European-level debate on continuous education and training. The Bruges Communiqué has identified work-based learning as one of the areas that requires increased political attention and strategic action, while the Education Council s adoption of a Resolution on a renewed European Agenda for Adult Learning puts emphasis on how, in the face of constant change and the consequences of the economic crisis, adults regularly need to enhance their personal and professional skills and competences. 3 4 Further, in terms of supporting employment and growth in Europe, the Employment Package of 2012 underscores the importance of taking action to modernise education and training systems, increasing the quantity, quality and relevance of skills supply. 5 3 European Ministers for VET and Social Partners (2010) - The Bruges Communiqué 4 Education Council (2011) - Resolution on renewed European Agenda for Adult Learning 5 European Commission (2012) - Towards a job-rich recovery SHAPING TALENTS SURVEY CEEMET 9

11 Against this background, this report seeks to : contribute to the EU-level debate regarding lifelong learning and the Europe 2020 strategic objectives, adding sector specific knowledge ; promote a better match between skills and labour market needs ; promote better anticipation of future skills needs ; raise awareness about successful cooperation between CET providers and MET employers. Continuous education and training is differently understood in different countries and there is no generally applicable, precise definition across Europe. However, for the sake of this report, continuous education and training will here refer to all types of formal and non-formal learning undertaken by individuals after terminating secondary school or tertiary education, however far this process may have gone and whether they have or have not acquired a certificate. This report does not specifically look at informal learning. While informal learning plays a crucial role in the development of skills, knowledge and competences in the workplace, the cognitive and unstructured nature of this type of learning makes it difficult to capture and define in results and therefore it is not included in this report. 2. Background New competence needs In the face of constant development in innovation and technology, changing consumer demands and global competition, companies have rapidly changing competence needs. Technological development calls for companies and employees to continuously update their capabilities and competence in technology. By the same token, internationalisation and increasing consumer and customer focus has driven the emphasis of competence development initiatives in industry away from concentrating solely on technical competences towards a stronger need to combine technical competences with soft skills, such as the ability to communicate in foreign languages and operate in different business cultures in order to better understand customers, competitors and suppliers at all levels of the value chain. Competence development measures can take many different forms, from company-initiated and run structured and professional training programmes, to learning on the job how to run a new machine, a new task, learning as a trainee to training upon an employee s own initiative on his/her own time and not funded by the employer, to e-learning, coaching, action learning, and so on. What is clear is that most of it takes place in the workplace due to demands arising from changes in professions and companies. Overall, the studies on future labour markets all point, to varying degrees, to a shift towards higher skilled jobs (c.f. Cedefop, 2011). This trend can to a certain extent also be seen in the MET industries. For companies and employees alike, this implies that the skills that an individual has when he or she enters the labour market are often not enough to meet the changing needs of companies over a longer period of time. Furthermore, the EU s effective labour force is predicted to go into steady decline by This is particularly pressing for the MET industry, where since the mid 1990 s until today the proportion of older workers has increased steadily. In the German MET industry, the employment of workers aged 60+ has doubled between 2000 and As a result, a total of 172,900 employees in the German MET sector are likely 6 European Commission (2008) - New Skills for New Jobs 10 SHAPING TALENTS SURVEY CEEMET

12 to retire in the upcoming years. 7 In Finland, the size of the working population (15-65) has since 2010 rapidly begun to decrease, with the Finnish technology industry predicted to lose employees each year in the following five years, taken out of a total workforce of 290,000 employed people. 8 High replacement demand due to an ageing workforce with baby boomers starting to reach retirement age implies a severe loss of competence (know-how) in the MET industry, a high risk of labour shortages, as well as a profound need for companies and countries to pursue actions to encourage the labour force to stay longer in work and to improve the productivity both in the public and private sectors. Arguably, the demographic shift is contributing to a change in the perception of older workers, with MET companies accommodating work practices to retain their older, skilled and competent workers. as the most severe hindrance for business growth in the medium term, expressed through, for instance, having to put off planned expansion and being unable to accept new orders. 9 When difficulties sourcing the right competence become a pervasive problem, such as it is today, this has negative implications upon the already heavily strained economic growth and employment in Europe. In addition to demographic change, sourcing the right competence is also made more difficult by the socalled skills gap whereby initial vocational education and training (ivet) systems in Europe are currently not fully able to respond to labour market needs, thus creating a gap between the supply and demand of industry-relevant skills. (The skills gap and the need to improve ivet across Europe is the focus of another study that CEEMET carried out in 2009, which called for closer cooperation between industry and ivet to improve the quality, attractiveness and relevance of ivet.) Across the different education systems in Europe today, there is often a general failure to attract students to study science, technology, engineering and mathematics (STEM) subjects. This is a genuine problem for the MET industry as STEM skills are a precondition for many highly technical MET sector jobs and necessary in order to undertake continuous education and training in this area. Consequently, even companies in countries with very high levels of youth unemployment report significant unfilled vacancies. In fact, the qualitative and quantitative shortage of skills has for some time now been identified as one of the determining factors hindering economic growth and innovation capacity in the MET industry, not least for small and medium-sized enterprises (SMEs). According to a survey carried out by the TRIOplus program in Finland in 2010, the shortage of skilled workers was seen by the 200 MET company respondents 7 Bundesagentur für Arbeit (2012) Beschäftigungsstatistik 8 Statistics Finland 9 Federation of Finnish Technology Industries : See Attachement FI02 SHAPING TALENTS SURVEY CEEMET 11

13 3. Training as an investment Given the challenging environment of the European MET industry, sustaining access to the best talents and continuously creating, updating, and upgrading new skills, knowledge and competences has become central for MET companies in order to maintain their competitiveness. Encouragingly, companies across Europe are taking action to tackle the skills challenge with many firms in the metal, engineering and technology-based sectors putting increased focus on human resources development and training their employees in order to create the competence needed. The type of training undertaken varies significantly, dependent on country, provider, company and employee. It is also determined by the scope, extent and forms of labour legislation and collective bargaining that in some countries regulate education and training within enterprises, as well as general social partner involvement in workplace learning, and thus varies with national systems of industrial relations. Nevertheless, according to the results of Eurofound s 5th European Working Conditions Survey, in 2010, training funded by employers reached its highest level in the last 15 years, with 34% of employees participating in training within the 12 months prior to the survey Investment in education and training has become a key strategy to retain a competitive workforce and many of the skills that companies require to remain innovative and competitive will be learnt, updated or improved in the workplace. ing, but they also have a responsibility to train and maintain their employability as, following the flexicurity model, we gradually move from job security to employment security. In terms of workplace learning, the MET sector strongly believes that to be competitive both companies and employees need to invest in continuous training and learning for the competence needed in the company as well as the concerned professions. These investments will indeed contribute to an individuals employability in general as well. Making it possible to train and capturing the opportunities to study for general skills outside of company specific needs is, however, the responsibility of governments and individuals. Transformation and restructuring for international competitiveness MET companies growth and development strategies as well as continuous changes in their external environments also imply restructuring in companies, creating new job profiles and competence needs. For instance, a continuous decline in demand for a product or service often requires a company to look for new business prospects or new markets if possible. This can lead to significant restructuring in MET companies with radical internal transformation processes involving changes in organisational and strategic positioning, implying significant labour changes and retraining at all levels. Globalisation has strongly accelerated this process, placing a greater responsibility on companies and employees to commit to lifelong learning and to be flexible regarding career changes in order to retain employability. A shared responsibility While companies continue to invest in lifelong learning, it should be underscored that it is very much a shared responsibility between employers, employees and the state. In terms of working life, lifelong learning benefits both the company as well as the employee, and implies that an employee will have to be motivated and committed to invest in her/his professional development throughout his or her professional life. This motivation and commitment rests, in turn, on an understanding that lifelong learning benefits both the company as well as the employee individually. Employees should have access to train- 10 Eurofound (2010). 5th European working conditions survey 11 Due to the severe financial and economic climate, this level is predicted to have gone down in SHAPING TALENTS SURVEY CEEMET

14 4. Challenges related TO training What challenges are the MET Industry facing with CET and how can they be managed? Overall, training needs are becoming increasingly diverse, with firms developing tailor-made solutions to respond to their specific skill needs. MET employers are strongly promoting human resources development at all skill levels. Although high-skilled workers still account for the largest proportion of investment in skills development, MET companies are increasingly focusing also on providing opportunities for competence development and career advancement for the lower-skilled workforce, based on company specific skills needs. Nevertheless, there are some commonly cited obstacles that companies in the MET sector have to manage in terms of continuous education and training. Shortage of basic skills A lack of basic skills both qualitatively and quantitatively - is a problem when it comes to the effective uptake of CET. Significant problems arise when large parts of the future MET workforce acquire their core competences in ivet and these do not correspond to labour market needs. Further, competence in science, technology, engineering and mathematics (STEM)-related subjects is decreasing as the interest for undertaking STEM studies falls in many EU member states 12. Hence, companies have to train employees in a more fundamental manner and are thus having to correct the failings of primary, secondary and tertiary education and training. Recommendations to national and local actors : Ensure that education and training systems allow for active employer involvement in governance and curriculum development and assessment of students learning outcomes by, for example, enabling or improving the participation of employers on school governing boards. 12 BusinessEurope (2011) Plugging the skills gap the clock is ticking Focus on excellence and raise the general level of ambition for ivet and initial practice oriented HE programmes Establish high-quality, easily accessible guidance for pupils from an early age, involving both schools and industry. This can be done by, for instance, setting up independent career centres, ensuring high quality training (including industry experience) for counsellors and teachers, and capitalising on the possibilities offered by the Internet and social media. Promote a culture of practical learning in primary and lower secondary education to introduce pupils to STEM skills and their potential applications in different professions and VET early on. Both schools and companies must become better ambassadors for careers in STEM and VET subjects to attract more young people into working in the sector. Continuous education and training provision does not always meet company or learner needs Course content and the way of delivering training have to be considered when assessing the problems that companies face in CET. In many instances, training provided by training centres or public education and training institutions is delivered from the centre s/institution s perspective, with a set catalogue of skills, and not according to the companies or employees needs. Considering the competence needs of employees and focusing on training and learning methods is of particular importance regarding those workers who have not trained for a long time or who have negative experiences from traditional education environments. Nevertheless, improving content and delivery does not only imply that training providers have to change the way they work ; companies also have to become better at communicating what they want and need. This in turn requires a stronger focus on strategic thinking and business management. Recommendations to all actors : In order to better meet company and learner needs in terms of content, delivery, and timing (e.g. training for older workers), education and training providers must become more flexible in their approach to content as well as teaching methods, while companies have to become better at communicating their needs. SHAPING TALENTS SURVEY CEEMET 13

15 This in turn requires supportive framework conditions and policies, to be able to respond to labour market requirements. The best way of ensuring that training meets needs is by increasing the cooperation between education and training providers and the labour market, for instance through governance structures. Essentially, both the quality of the training provided to enterprises and the competences of trainers need to be addressed at all policy-levels that concern skill development in order to be successful Ensure that the diversity and flexibility of national education systems and their ability to adapt to changing circumstances - are not jeopardised by EU-level initiatives. Make continuous education and training competitive. For companies, CET is an investment. Hence, CET that pays for itself is usually CET that responds to market needs. Lack of information CEEMET members have noticed that companies as well as employees, especially in SMEs, are not always aware of what exists in terms of training alternatives or how to access them. In Finland, for example, the fund for professional development is underused by MET employees partly due to lack of worker awareness concerning funding, very little knowledge about individual learning paths, delivery of training as well as motivation to train. Social Partners have an important role to play here, as they are vertically integrated on a company, sectoral, regional, national and European level and can access and transmit information more easily, facilitating effective knowledge streams between MET companies, employees, training providers and policy makers, supporting access to CET. Recommendations to Social Partners : Employer organisations and worker representatives, as appropriate, have a greater role to play in improving career guidance and informing both companies and employees about possible training alternatives and how to access them. This is also recognised in the recent European Employment Package, which highlights the importance of pooling resources and focusing on effective partnerships, whereby linking up around similar recruitment and training needs would make groups of SMEs capable of overcoming their individual inability to attract qualified staff and establish joint human resources policies. 13 Increase cooperation with external training providers to raise awareness and provide guidance on financing CET and information on the return on investment (ROI) of different training initiatives Employer organisations and worker representatives can together be more effective in ensuring that individual learning paths become a generally adopted approach in the provision of continuous education and training. Need for more strategic business and competence development and effective tools to assess training needs, efficiency and impact of training To define a human resources development (HRD) strategy a company needs a business vision and a business development strategy, as SKC development does not exist independently from a company s overall competitiveness. However, companies, and in particular SMEs, often lack sufficient business intelligence and thus have limited capacity and personnel to develop key features of an HRD and training strategy. The issue here is to improve the strategic management capabilities of these companies. This may include, for instance, support services to develop business strategies and bring the human resources and training strategies to the heart of the business development. This often requires that there is adequate support to assess skills needs at enterprise (and sector) level and to show that well prepared and delivered continuous education and training is an investment and not simply a cost. In France, UIMM initiated an experimentation to support SMEs in developing their competences needs and thus their training strategies, not only shortterm, but also medium and long-term. Indeed, with its national agreement on the anticipative management of competences and employment (Gestion Prévisionnelle des Emplois et des Compétences), signed with four trade unions in 2010, the metal sector has introduced a new mission for its regional network. In order to raise awareness amongst companies, and especially SMEs, experts belonging UIMM s regional network have been given the task to promote 13 European Commission (2012), Towards a job-rich recovery 14 SHAPING TALENTS SURVEY CEEMET

16 the anticipative approach of skills and jobs in order to help SMEs identify what will be their competences needs in the short and medium term. This action is complemented by several tools which are put at the disposal of companies to support them in their anticipation exercise and in the setting up of their training strategies. One of these tools, called Human Resources Project, is an IT programme dedicated to help companies in their competences diagnosis. This experimentation is financed by the sector. In Finland, the Federation of Finnish Technology Industries introduced the TrioPlus program, which supports the renewal, growth and internationalisation of technology companies, providing managerial and strategic experts, visiting 800 companies and identifying their particular development needs. Help is available for reshaping business strategy, improving board work, mergers and acquisitions, finding partners, or even for developing new e-commerce channels. The program has managed to strengthen strategic cooperation in the value network of companies to overcome labour challenges caused by demand fluctuations. Due to improved cooperation, companies have been able to anticipate their staff needs and adjust production according to others while there also has been a further exchange of competencies among company staff. Furthermore, companies investing in training, independently of whether they are SMEs or bigger companies, are interested in the impact and efficiency of the training, e.g. improved capability of the employees who participated in the training to carry out their jobs, develop their way of working, take up new challenges or contribute to the process and business development, improved motivation and job satisfaction, reduced sick leave etc. In terms of training, the qualitative perspective is more interesting than the quantitative. Not least, the impact of training has strong implications for employers and employees when it comes to investing and engaging in training. In this context, methods of learning, and how learning takes place, is very important. In order for trainingto be efficient, evaluation is needed before and after. What does training give an employee (in learning outcomes) and what does it provide the company with? The impact of training often relates to choosing effective assessment tools as well as cooperation between the various actors. Impact puts emphasis on training providers, but also on employers and employees in terms of assessment. All actors should encourage : Pooling of resources : most countries have established networks of centres of excellence in order to raise SKC levels and the employability of the workforce as well as to provide and exchange innovative training solutions and knowledge of company skill needs between companies. In this context, jointly organised training facilitates the validation and exchange of knowledge and the transfer of skills. Arrangements whereby big companies organise joint training and learning environments with SMEs, supporting the suppliers in their value chain, which they are dependent on from a dayto-day basis. Articulation of needs and expectations between stakeholders. Lack of culture or motivation for continuous training and investment in learning Another problem encountered in workplace learning is a lack of motivation or culture for continuous training, both from employee and company. As mentioned above, this is often linked to the difficulty in measuring the impact of training as well as a mismatch between the training on offer (both content and delivery) and the training needed. It is also linked to detachment in the value chain, with the end product often being far away from work tasks. This can be a problem particularly with formal learning, when participants have a clear idea of what they want to learn and for what purposes. Recommendations: Companies and social partners : Motivation to train may be strengthened by company strategies that bring the value chain into context. Both employers and employees want value for money or time invested and wants to understand what they are training for. Hence, arrangements whereby big companies organise joint training and learning environments with SMEs, supporting the suppliers in their value chain, would help everyone understand their role in the value chain. SHAPING TALENTS SURVEY CEEMET 15

17 Experience from CEEMET members indicates that the availability of good practice examples as a reference tool greatly changes the perception of training as an investment rather than a cost to employers as companies can see a return on investment (ROI). Employer organisations can improve the CET culture through collecting and disseminating successful examples of CET and the benefits of long-term strategic approach to human resources development, so as to raise general awareness among all companies. Companies, social partners and national and EU level policy makers : Business development strategies which link up with HRD strategies not only help companies formulate their needs, but also give employees an understanding of what their next steps could be, increasing the likelihood to train. Companies, social partners, and national and EU level policy makers all have a role to play in creating an environment that supports companies investing in strategic management planning. Strengthened cooperation between training providers and the labour market to enable training providers to meet the needs of companies. This in turn requires supportive policies at all levels, including the European level. Education and training providers, companies and employees should support : Introduction of innovative forms of learning (such as blended learning) that would meet the needs of learners as well as the companies. New combinations of different training methods, such as e-learning, I-training, distance learning and job rotation as well as a combination of formal, informal and non-formal on-the-job and off-the-job learning have been developed and introduced by successful MET companies based on assessment of their needs, and proven to be highly efficient. Distance learning, which increases the participation of workers that cannot be physically present and is thus becoming increasingly important as SMEs are internationalising their operations. On-the-job learning, (as in informal and non-formal learning) which can be inter-departmental or cross-departmental knowledge sharing, or intradepartmental (between the same department) or between companies in a partner network, and is an important alternative to formal learning. It can motivate companies and employees to train, sharing knowledge and broadening the competences of the workforce. Informal and non-formal learning is often supported via job rotation, with the benefit of job enrichment for employees and of broadening the skills and knowledge of the workforce. It further creates internal networks between different departments and levels of management and therefore benefits the flexibility to adapt to global challenges and opportunities and improves business processes There needs to be a fair distribution of training costs (time and money) between all stakeholders. Management of training funds Funding or lack of it is a crucial issue when companies decide on and plan for training, not least when both public and private training budgets are being cut. Funding is available at European, national, regional and sectoral level in many countries, but accessing the funds can be complex and training funds managed by governments or social partners do sometimes not reach small enterprises. In the face of this, many companies simply do a quick cost-benefit analysis with training as the losing option. For instance, in Spain there are a lot of financing possibilities for training in MET companies, but experience shows that not only is awareness very limited, access to joint training funds means meeting very many conditions and going through extensive bureaucratic procedures. Hence, both access to, and management of, training funds have to be improved. The same problem can be identified in Italy. Training in an economic downturn MET companies, when threatened primarily by an unexpected short-term slowdown in demand, often adopt temporary measures to retain the existing workforce in order to facilitate a quick recovery when demand picks up again. Staff retention strategies during short-term periods of low production output are an important tool to retain long term competitiveness. Direct costs associated with staff turnover include recruitment fees, interview time, reference checking, salary differential and medical testing. It is however, the indirect costs which are unmeasured or not taken into account lost productivity from disaffected staff, co-workers and supervisors, the vacancy period and time spent by replacement staff on the learning curve, which have a severe impact. This 16 SHAPING TALENTS SURVEY CEEMET

18 highlights why companies often resist large-scale labour changes during short-term crisis and invest in CET instead. Education and training of the existing staff during these periods further provides firms with an opportunity to upgrade competence levels of the workforce and to become more competitive in the aftermath of the crisis. Recommendations to EU and national level policy makers as well as social partners and companies : Simplify application procedures and instead improve monitoring and impact assessment. Policy makers should reduce red tape to make funding more accessible and less bureaucratic. Public employment services need to be more proactive in offering their products and work more closely with companies, increasingly targeting resources to smoothing transitions, minimising the unemployment period even in the context of major changes in employment prospects due to restructuring. Tax systems should not create unintended disincentives. Make it a strategic option to train in times of crisis and short-time work. Meeting the challenge of replacement demand While companies need to consider their retention strategies, EU and national governments also have a role to play in tackling the replacement demand and skills gap. Ageing workforce In terms of the ageing workforce, recent years have seen a paradigm change in the setting of labour market policies all over Europe. Several member countries are currently increasing their retirement age in order to adjust to skills shortages and increasing pressures of pensioners on benefit. Countries are further smoothening labour market policies to eliminate age discrimination. In Britain the government abolished the statutory retirement age of 65, thus allowing people to stay in work longer. Mobility Several countries, including Austria, the Netherlands, Norway and Luxembourg are driving closer towards full employment with unemployment reaching 5% or less in World class MET companies in tandem with effective industrial relations, quick and pragmatic political decision making and flexible forms of employment have created optimal conditions in these countries to attract investment. 14 As a consequence, capacity limitations due to a lack of qualified workers have a significant impact on sustainable economic growth in these countries, with companies and countries competing fiercely for the best talents. According to WKO (Austrian Chamber of Commerce) increasing workers mobility is now the most significant priority for Austrian MET sector companies. Following an initial analysis of the metal sector in Vienna published in May 2011, the preliminary findings indicate that companies are able to source a sufficient number of qualified workers from Hungary and the Slovak Republic. Nevertheless, job readiness is often significantly limited by language barriers. A stronger anticipation of international competences in initial and continuous vocational education and training is thus an important priority to increase labour market mobility. Essentially, learning mobility in ivet for students and apprentices contributes to the development of important soft skills (language, culture, adaptability) which are crucial in a globalised, technologically fast-paced industry and world. Recommendations for EU and national level policy makers : Facilitate and promote greater mobility and easier exchange and transfer between EU countries for students, apprentices, VET teachers and young professionals (whether to complete their studies or to do on-the-job training in other countries). Continuously work towards improving transparency of qualifications, based on learning outcomes. 14 Eurostat (2012) SHAPING TALENTS SURVEY CEEMET 17

19 5. Focus : supporting the competitiveness of SMEs Small and Medium-sized Enterprises (SMEs) make up a vast majority of European MET sector companies and jobs. They provide vital intermediate products and services to answer the quality demands of their associated customer networks as well as producing highly specialised product solutions, making them hidden champions in their particular niche. SMEs today are faced with responsibility of innovation and continuous improvement of final and intermediate products and services. The strong complexity of European value chains requires flexible MET companies that can respond to increasing technology change. The drive towards high specialisation further increases the level of network interdependencies and the need of each participant to optimise their operational value chain. The strength of the innovation system and the competitiveness of the final product are determined by the capability of all participants to deliver innovative, efficient, high quality products and services. Interdependency creates major challenges for the industry, with the failure of one component supplier in one country having an impact on the entire production line. This in turn affects the productivity and hence competitiveness of all companies in the network. As large assemblers are constantly anticipating changing customer trends and political regulations in a diversity of product markets, they will further need to create new and enhanced communication channels to spread new knowledge efficiently. This will lead to new competency needs and strong investment in research and development (R&D) for SMEs. Overall, SMEs rely more than ever on their ability to reinvent themselves. As a consequence, they need to be highly flexible and specialised at the same time. However, due to factors such as size, market power, managerial and time constraints, SMEs face many workforce limitations, which make continuous training a real challenge. Against this background, there is a strong need to consider the organisational obstacles of SMEs and to provide good practice initiatives and policy support to overcome these constraints. Challenges for SMEs in anticipating skills needs As SMEs are an important driver of Europe s innovative competitiveness there is a profound need to identify and overcome the challenges that hinder the effective SKC creation and development. One of the main obstacles in SME capability and competence development may be associated with their mere market position and size. SMEs also often lack the inhouse HRD resources and pedagogical capacity and are therefore considerably disadvantaged in pooling human resources, financial means for skills funding and in providing resources for training. As SME training needs involve a low number of participants, the effort to apply for funding is often not justified by the amount of training desired or is flawed by complicated red tape. Furthermore, SMEs face restrictions to find tailor made training solutions, as it is often not feasible to hire a trainer for just one person. A lack of managerial expertise and time constraints are further factors that may hinder SMEs to take advantage of good practice initiatives and to fully identify and exploit the channels of support available to them. The provision of tailor made guidance tools to meet SMEs development needs and the availability of good practice initiatives therefore becomes a major factor, in order to increase the availability and effectiveness of training. Nevertheless most guidance systems encounter difficulties to reach a large proportion of SMEs. An additional factor is related to the quality of the guidance initiative. As different stakeholders have different interests, guidance systems do not always meet the specific training needs of SMEs and thus have a limited impact. Developing a multi-skilled workforce to reduce the dependency on specialists SMEs are highly dependent on a limited number of specialists, which are often in short supply on the labour market. They therefore require a high level of multi-skilled employees who are capable of taking on different tasks within the company to overcome labour market risks. Indeed, SMEs often need to optimise the results of their training as they commonly face significant financial and time constraints and a limited supply of tailor made training initiatives. Further, SME s are often located in potentially less at- 18 SHAPING TALENTS SURVEY CEEMET

20 tractive, rural areas, so they would benefit from flexible CET, distance learning and mobile CET providers. Enhancing cooperation between industry and VET providers, promoting MET sector skills Although all MET companies need to anticipate the future demand situation for their products and services and the supply of qualified workers to meet their growth and development targets, SMEs still tend to be more disadvantaged. This is due to the fact that they are usually less known to future graduates and learning outcomes often reflect the needs of large industry players as they have a greater voice and visibility and are easier to reach. As a result, there is a severe threat of a labour market mismatch between future skills and SMEs needs. A closer cooperation between MET sector SMEs and education institutions needs to be anticipated by all stakeholders. Cooperation with schools and training institutions can further provide valuable skills and outside consulting services, replacing the lack of managerial competences and time constrains often found in SMEs to carry out in-depth research and support the development of long-term symbiotic relationships. Outside consulting further provides unbiased views on the company s overall operations and supports SMEs in their need to be multi-skilled to adapt to changes in the business environment and labour shortages and risks. Recommendations to all stakeholders : 1. Support the formation of external knowledge networks : SMEs need to be market responsive and efficient at the same time. The formation of strong networks between customers and suppliers and a strong knowledge about the current and future needs of these groups is critical to raise efficiency and adaptability of the operations and to create competitive advantages through exploiting potential synergy effects. The establishment of trust and the exchange of knowledge between network partners create shared benchmarks. In some cases it is even advantageous to create external co-operations in terms of job sharing with network partners, e.g. to anticipate capacity problems in one company, to enhance mutual learning SME s do not always possess an extensive strategic management base. It is the role of Social Partners and policy makers to provide favourable framework conditions (managerial and strategic) to support SMEs efforts to improve their business intelligence and innovation capabilities, and thus also be able to set up effective and efficient SKC structures. Bringing in outside consultants or mentors to the company to analyse the strategic and managerial needs of the company can be an important factor in improving the competitiveness. Cooperation between industry and VET as well as practice oriented HE, combining academic education with real work experience ( project learning model ), supports SMEs in widening their managerial expertise and organisation bias, while also supporting the development of future talents, raising awareness of MET sector skills. Social partners need to share examples of training solutions via user-friendly and high quality guidance tools and provide companies and employees with information about financing possibilities to overcome financial restrictions of SMEs. 2. Foster non-formal on-the-job training to create a multi-skilled workforce : SMEs face work time restrictions and workload pressures. On the job learning as in non-formal (and informal) learning, which can be inter-departmental/cross-departmental or inter-company knowledge sharing or intra-departmental (between the same departments) is an important alternative to formal learning in order to share knowhow and to broaden the competencies of the workforce. Informal and non-formal learning is often supported via job rotation, with the benefit of job enrichment for employees and of broadening the skills and knowledge of the workforce. It further creates internal networks between different departments and levels of management and therefore benefits the flexibility to adapt to global challenges and opportunities and improves business processes. SHAPING TALENTS SURVEY CEEMET 19

21 6. Conclusion CET systems and the role that employers play in them vary greatly across Europe and beyond. Lifelong learning policies remain a largely national responsibility and adult learning policies are shaped in line with countries different educational traditions, labour markets and industrial cultures. Moreover, companies and employees choose skills, knowledge and competence development to suit their specificities and needs. There is simply no one-size-fits-all in continuous education and training. Companies and employees Both companies and employees are ultimately responsible for their own competitiveness. Their commitment in human resources development and professional development is pivotal in ensuring that HRD activities and continuous education and training will meet both company and employee needs, and that it will lead to a positive impact on business and subsequently create new job opportunities. Many of the challenges that have been identified in this study are in fact primarily challenges for companies to deal with. Nevertheless, as the good practice examples put forward in this report hopefully show the companies in the MET industry are taking action and are investing in many ways in their future Europe s future. Outside of companies, however, actors on the European and national arena, including social partners, policy-makers, education and training providers and individuals, also have a role to play in ensuring a competitive and supportive environment for industry. Social Partners Social Partners play a crucial role in providing information and supporting both companies and individuals in managing their skills, knowledge and competence development. Not least, social partners must work to pool resources among stakeholders, take a greater stake in providing assistance in finding and setting up centres of excellence and encourage cooperation between large companies and SMEs in terms of CET. Social partner monitoring of sectoral skills needs and sharing of good practice initiatives supports the development of effective approaches to competence development and training tools and provides policy support on a national and, as appropriate, European level. Overall, however, the most important role of employers associations in supporting continuous education and training lies in their support for SMEs in developing sound business strategies encompassing HRD strategies. Many good examples are available on how to initiative and promote business development programmes and it is our hope that these can be spread at local level as well as European level. National level and EU level policy makers A handful of recommendations in this report have been aimed at policy-makers at both the national and European level. Overall, the most important challenge at these levels is to ensure that the general framework conditions for a competitive industry are in place. Not least, specifically when it comes to education and training, replacement demand and skills shortages, policy makers have a role to play in implementing lifelong learning, improving VET and in particular the responsiveness of the education and training systems to labour market needs. These actions all contribute to improving the access, uptake and impact of continuous education and training. CEEMET and its members welcome the EU level emphasis on cooperation between industry and VET and university-business cooperation, as well as the work that is being done to reduce the administrative burden for SMEs, and are committed to providing policy makers with sector specific information and good practice to ensure a competitive and thriving MET industry in Europe over the years to come. CEEMETs commitment Ensuring that industry s voice is central in the debate over how best to develop lifelong learning at all levels is a continuous challenge but it is one which must be met given the importance of this issue for Europe s future competitiveness. CEEMET is committed to working for closer cooperation between industry and education and training at all levels, and will continue to bring attention to this issue at European level by : Communicating the views and needs of the MET industry, supporting the exchange of good practice and promoting a true, up to date and future oriented image of the industry ; Coordinating the views of national employers organisations to speak with one voice on education and 20 SHAPING TALENTS SURVEY CEEMET

22 training-related issues which need to be addressed at the European level ; Cooperating with other stakeholders at the European level in different fora, including as appropriate the Sectoral Social Dialogue, to create an EU-wide network of experts and stakeholders working together to improve the quality and impact of vocational education and training and higher education in Europe and strengthening the commitment to invest in continuous training and professional development by companies as well as employees. SHAPING TALENTS SURVEY CEEMET 21

23 PART 2 7. good practice examples # Ref. Cases Name of Company/ Association 1 AT01 Skill shortage- rising demand for mobile workers WKO 2 AU01 3 AU02 4 AU03 Competitive manufacturing implementing lean and productivity improvements HR strategy to attract and retain key and high calibre staff using company skills mapping and staff development The creation of a company-owned training centre to meet skills needs 5 BE01 The transmission and perpetuation of knowledge in business - Boral 6 CH01 Providing excellence in cvet SWISSMEM Coffey International Limited 7 DE01 A blended learning approach to update managerial competencies Miele & Cie. KG 8 DE02 Implementing company-wide staff retention strategies Ford-Werke GmbH Union for the Development of Industry Liege (Collaboration of the Training Fund for the Technology Industry Liege- Luxembourg (IFP) and the Department of Lentic of Ulg) 9 DE03 Open career pathways to the low skilled workforce SKF GmbH Schweinfurt 10 DE04 Investing in Entrance Qualification (EQ) CareFusion Germany 234 GmbH 11 DE05 Introducing lean management during short work Webasto- Edscha Cabrio GmbH 12 ES01 Improving business processes for greater competitiveness 13 ES02 Implementing external, cross-department and intra-department training AECIM (Metal Employers Organization for the region of Madrid) GH Electrotermia, S.A. 14 ES03 Responding to new skills needs GRUPO MONZÓN 15 ES04 Improving customer after-sales services GRUPO PALMA 16 ES05 Retraining the workforce to adapt to new skills for new markets GRUPO VENTO 17 ES06 Training in languages MECANIZADOS, S.A. 18 FI01 Collaborating with students to enhance the networking capability Copax Oy; Projektipaja 19 FI02 TRIOplus offers tools for growth and internationalisation 20 FI03 Teaching sales personnel to adopt a new query-based sales process to better understand the client company s business strategy 21 FR01 Investing in training to retain a competitive workforce during crisis Manitou The Federation of Finnish Technology Industries ; Fenestra Oy; Hydro Aluminium Salko Oy 22 FR02 Training disabled students ALCATEL-LUCENT 23 IT01 Supporting SMEs skills development via Funding - Algol Technics Oy; Symbiosi Partners Oy 22 SHAPING TALENTS SURVEY CEEMET

24 Country Size SME MNE Line of business ; products and services Goals and Objectives Competitiveness Austria - - association x Australia x manufacturing x x Ensuring Skills Supply SME Quality and Impact of VET Australia x construction materials x x Australia x social and physical infrastructure x x Belgium - - association x x x Switzerland - - training provider, employers association Germany x home appliance x Germany x automotive x Germany x rolling bearing x Germany x medical technology x Germany x automotive x Spain training provider, association x x Spain x Capital goods company x x Spain x Spain - - automotive x Spain x business of designing and manufacturing industrial machinery Spain x metal- processing x Finland x metals and mechanical engineering; University x x x Finland x construction; aluminium processing; association x x x Finland x metals and mechanical engineering France x machine handling x x France x mobile, fix and optical technologies Italy x IT consulting x x x x x SHAPING TALENTS SURVEY CEEMET 23

25 # Ref. Cases Name of Company/ Association 24 IT02 Develop new skills for new markets - 25 IT03 Using a blended learning concept to develop high level managers SME from Vicenza region 26 IT04 ITS Foundation - Collaboration between industry partners local authorities and education institutions 27 LV 1 Making training available to all companies MASOC 28 NO01 29 NL01 30 PT01 Raising attention to the MET professions and improving the impact of training Bringing together MET companies and trainers creating virtual networks Retraining the workforce to meet the requirements of a new production department 31 PT02 Improving business processes SELEX GALILEO 32 PT03 Strengthening technical and organisational capabilities LEIRIMETAL 33 PT01-03 Findings and conclusion of Pt (CENFIM Training Initiatives) 34 SI01 Develop a multi-skilled workforce - 35 SI02 36 SE01 Reintegrating retired employees to transfer accumulated knowledge to the next generation An innovative collaboration for a competitive industry between industry, University and a non profit agency Federation of Norwegian Industries, K-Tech FEDA, The Federation of Drive & Automation Sector Organization Indústria de Componentes, SA FABRISCAPE, Fábrica de Escapes para Automóveis, Lda CENFIM - Nimo-Verken AB, University of Skövde, IDC West Sweden AB, manufacturing industry 37 TR01 Creating mutual networks and training groups among companies MESS; TURK METAL TRADE UNION 38 UK01 A blended approach to anticipate a lack of technical skills Siemens Energy 24 SHAPING TALENTS SURVEY CEEMET

26 Country Italy Size SME x MNE Line of business ; products and services control and management systems of methane pipelines Goals and Objectives Competitiveness Ensuring Skills Supply Italy x - x x x SME Quality and Impact of VET x x x Italy x defence electronics x x Latvia x x Norway - - Netherlands - - employers association, training provider employers association, training provider employers association, training provider x x x x x x x Portugal x metallic components x x x Portugal x exhaust systems component producer x x x Portugal x manufacturing x x x Portugal - - employer association, training provider x x x Slovenia x - x x x Slovenia x - x x x Sweden x product developer and manufacturer of laundry room equipment x x Turkey x x social partners joint initiative x x x United Kingdom x energy transmission and distribution division x x SHAPING TALENTS SURVEY CEEMET 25

27

28 Austria AT 01 : Skills shortage - rising demand for mobile workers Association Focus of initiative WKO (Chamber of Commerce Austria) Mobility Project Summary According to WKO (Austrian Chamber of Commerce) increasing workers mobility is now the most significant priority for Austrian MET sector companies. Following an initial analysis of the metal sector in Vienna published in May 2011, the preliminary findings indicate that companies are able to source a sufficient number of qualified workers from Hungary and Slovak Republic, nevertheless, job readiness is often significantly limited by language barriers. Outcome As many jobs in the MET industry involve dealing with clients, an important training need for companies is related to non-technical skills, including soft and civic competencies. A lack of language proficiency hinders the integration of foreign workers in processes requiring team work and management. A stronger anticipation of international competences during initial and continuous vocational education and training is thus an important priority to increase labour market mobility. There are constraints due to national labour market regulations, particular concerning under age apprentices from eastern Hungary, since fiduciary duties hinder the recruitment of these talents. SHAPING TALENTS SURVEY CEEMET 27

29 Australia Situation of the MET sector in Australia Currently, parts of the Australian manufacturing sector (a large employer of metal engineering and technology skills) have been battling weak demand, big cost increases and reduced competitiveness. This is due to the manufacturing sector in Australia enduring weak demand fuelled by global uncertainties and rising interest rates ; rising labour costs which are not backed by productivity gains ; rising electricity and other input costs ; and a high dollar which has pulled the ground out from below our export and import competitiveness. The need for better workforce development is a priority in Australia, with the Federal Government announcing as part of its Budget the Building Australia s Future Workforce package. The package provides a $3.02 billion investment over six years for a new approach to deliver the skilled workers the economy needs and ensure more Australians have the opportunity to share in the nation s prosperity. This is on top of new funding of more than $2 billion over the next four years for Australia s university sector. Contribution of manufacturing to the Australian economy Manufacturing contributed $107,720 million in Total Factor Income to the Australian economy in This constituted 9.3% of Total Factor Income for Australia Manufacturing was the second largest contributor to the Australian economy in 2009 AU01 : Competitive manufacturing implementing lean and productivity improvements Company name - Personnel > 500 Focus of initiative Competitive Manufacturing Initiative (CMI) to improve business management Project Summary Company A invested in an approach known as Competitive Manufacturing Initiative (CMI) training. Competitive Manufacturing Initiative (CMI) is a training programme specifically designed to assist manufacturing businesses to achieve real bottom line results and sets the platform for positive cultural change. Based on Lean Manufacturing principles, the program utilises strong project management techniques combined with proven Lean Manufacturing principles and Six Sigma improvement methodologies aimed at generating continuous and sustainable improvements for business (Six Sigma approach : Describe, measure, analyse, improve and monitor business processes using statistical methods). 28 SHAPING TALENTS SURVEY CEEMET

30 Whether it is lead time improvements, cost reductions, identifying waste, quality and customer service improvements, improved communication between management and employees or inventory reductions, experience demonstrates results from implementing Competitive Manufacturing in the workplace. The programme varies from state to state (in Australia), and takes staff through to completion of a continuous improvement project setting them up to gain a nationally recognised qualification as they learn to apply modern manufacturing excellence in the workplace. Employers may be eligible for government incentives of up to $4,000 per person, upon meeting eligibility criteria to offset the cost of training. Company A reported that the Competitive Manufacturing Initiative led to significant, measurable improvements to business operations, including substantial cost savings. A brief overview of the process undertaken by company A is below. Competitive Manufacturing Initiative (CMI) : The programme is structured in a one year program with fortnightly tuition. Students split into 3 groups based around the business units (kitchen contracting, architectural, precision fabrication and street furniture). The course focuses on real issues facing the business, e.g. quality, cost reduction, on time delivery, housekeeping and safety). To overcome these challenges Company A s staff uses Value Stream Mapping, Problem Solving, Change Management, Cost analysis and waste reduction. Problems were identified, lean tools selected to fix them, staff was trained and tools and solutions were implemented. Outcomes Due to commercial sensitivity the outcomes cannot be divulged but evaluation reports showed that Company A achieved substantial cost savings and productivity improvements. Other outcomes included : Improved team work, new skills to apply to new problems and challenges, staff retention, improved Occupational Health & Safety AU02 : Human resource strategy to attract and retain key and high calibre staff using company skills mapping and staff development as a means of enhancing retention Company name Boral Personnel > 500 Line of business ; products and services Focus of initiative Construction Materials Coaching as a retention strategy Project Summary A key platform of Boral s Australian Construction Materials human resources strategy in the Victoria/Tasmania region is to ensure that staff attraction and retention initiatives are in place. The attraction of high calibre employees in all fields of endeavour, and the maintenance of low levels of staff turnover, is fundamental to business success. Stability in their skill and talent level is essential to ensure productivity levels are improved, that product quality is assured and the confidence of the customer base is maintained. SHAPING TALENTS SURVEY CEEMET 29

31 Identifying and rewarding emerging leaders and the graduate program : A group of emerging leaders has been identified within the region, including high potential employees with the capability for development as future senior managers or those holding positions where there is a high degree of influence over key operations. It was recognised that the ability of the business to grow from a values and skill perspective was dependent on the strength of this group. Accordingly, the turnover level of these emerging leaders also needed to be kept low. There was agreement from all general managers in the region that this group is a shared resource critical to Boral s overall performance. Accordingly, specific training and activities have been organised for this group by the regional HR group. A subset of the emerging leader group is the graduate pool. Activities in the region have focused on experiences as broad and varied as possible during the first two and half years. After completing an appraisal with their manager, the individual s progress is reviewed by the Manager, Human Resources to ensure that development needs are being met and, importantly, that sufficient challenge and stretch is being provided. Mid-year salary increases provide formal reinforcement of performance. Networking opportunities with the immediate peer group and general managers is also provided outside regular meetings of the wider emerging leader group. During the first two year period, the group will attend the emerging leader forum and enrol in the Certificate IV in Frontline Management program. Central to the success of the program has been the commitment of the regional general manager to conduct annual reviews of the turnover and churn in the business to ascertain the number of graduates the business will recruit year-on-year to sustain the program. Coaching as a Retention Strategy : It is estimated that the cost of turnover can vary between 30% and 150% of salary. Direct costs associated with turnover include recruiting fees, interview time, reference checking, and salary differential and medical testing. It is however, the indirect costs which are unmeasured or not taken into account lost productivity from disaffected staff, co-workers and supervisors, the vacancy period and time spent by replacement staff on the learning curve. There is a greater impact in losing employees from the emerging leader group who are being groomed for senior management roles. The learning curve investment by the company has been substantial and the impact of loss from this group is even greater. The void created by departing people, in terms of the lost experience required for succession planning to be effective, can result in a failure to find a suitable internal candidate as the gap to the next wave of graduate appointments can be too great. In this context, retention strategies become critical. Coaching is seen as an important method of instilling a strong performance-based culture throughout Boral s hierarchical levels. The initial group of trained coaches has grown to approximately twenty five across the region since the implementation of the program. Targeted participants of the coaching program are graduates, emerging leaders and employees in key roles who exert influence over others in their operation. Outcome Recent feedback from coached staff has indicated the program provides valuable personal development. It is well understood in the firm that coaching is a high level factor contributing to the retention of employees, and commitment by the senior management team has been important in sustaining this initiative. 30 SHAPING TALENTS SURVEY CEEMET

32 AU03 : The creation of a company owned training centre to meet skills needs Company name Personnel Line of business ; products and services Focus of initiative Coffey International Limited Over 3,000 people working on projects in more than 80 countries ; permanent offices throughout the Americas, Africa, Asia Pacific, Europe and the Middle East Social and physical infrastructure Building a high performance culture Project Summary Coffey International Limited is a listed company, which has grown rapidly from its Australian origin, and is now embarking on globalising its range of specialist businesses in the social and physical infrastructure markets. Coffey sees that developing people is a shared responsibility between the individual, their manager and the organisation. The Coffey Institute was launched in 2008 and is Coffey s internal learning and development function that plays an important role in each employee s development. The Institute aims to build a high performance culture, drive business profitability and competitive advantage by providing best practice learning and development, and professional development programmes. The Coffey Institute works closely with management and technical specialists to ensure learning and development programs meet the needs of Coffey and its people. The Coffey Institute offers a range of courses specifically designed for Coffey including : leadership & management skills, technical skills development, professional development, contract review and initiatives. Employees are also developed through structured and unstructured on-the-job learning, coaching and mentoring from their manager and other peer experts in their field. Outcome This is an investment by Coffey to ensure that they nurture the people to achieve their best and to meet Coffey s business plans, growth plans and financial targets. SHAPING TALENTS SURVEY CEEMET 31

33 Belgium BE01 : The transmission and perpetuation of knowledge in business Association Line of business ; products and services Focus of initiative UDIL (Union for the Development of Industry Liege) Training Provider, Employers Association Guide for companies to improve knowledge transfers in businesses to anticipate the demographic change Project Summary 1. Context : The Training Fund for the Technology Industry Liege-Luxembourg (IFP) in collaboration with the Department of Lentic of ULg (Prof. François Pichault-Celine Remy) initiated in spring 2009 a prospective reflection on the impact of demographic and technology change in terms of qualifications and skills, regardless of economic conditions. 100 companies with over 200 employees were surveyed in the region and the sector : to clarify the demographic situation of the sector ; to identify mutual training needs to improve the impact of training provision ; to identify areas where innovations are needed at the company level and sector level. As a result 1/4th of all workers (2,171 workers out of 8476) have been identified eligible for retirement by To cope with the demographic change, the solutions advocated by most companies are to hire young people, using older workers as trainers or mentors to retain the skills and competences of the workforce. Nevertheless, the study found very few companies are implementing mentoring (tutors), and if this is the case, the transmission of knowledge is not done in a structured and formalized way, which limits its efficiency. 2. The socio-economic issues related to the retention of older workers : Without knowledge of sustainability policy, the following dangers await the company : limited capability to meet production requirements and customer demands ; limited ability to achieve the objectives of quality improvement ; a lack of sharing and transfer of knowledge also leads to > repetition of errors within the organisation > duplication of effort > good practice does not circulate > dependence on key individuals > loss of individual skills > loss of collective skills 32 SHAPING TALENTS SURVEY CEEMET

34 > tacit knowledge forgotten > external skills or knowledge are ignored > very difficult to see what s coming Associated to these problems is another one, the lack of skills of new workers. 3. Specific actions : As part of the anticipation of massive replacement demand, the Training Fund for the Technology Industry of Liege-Luxembourg has implemented a series of specific actions such as briefings to companies, visits to targeted companies, the implementation of training projects between or within companies, and coaching. Many companies from the Liège-Luxembourg region were involved in transmission projects. 4. Setting up the UDIL (Union for the Development of Industry Liege) : In 2011, at the initiative of the office of Jean-Claude Marcourt, the UDIL was set up, operating in five thematic groups. Under the impetus of the work done by the Training Fund for the Technology Industry of Liege-Luxembourg (IFP), one of these themes concerns the transmission of knowledge. Around the table, companies (SMEs and MNEs) and the social partners concerned cooperated to support the structure to organise and to professionalise the steps related to the transmission of knowledge in business. Through its expertise, the Training Fund for the Technology Industry of Liege-Luxembourg (IFP) is leading the network. One of the objectives of the Working Group is notably the development of a methodological and practical guide for the transmission and perpetuation of knowledge in business. 5. Methodological and practical guide for the transmission and perpetuation of knowledge in business : The aim of the guide is to describe a methodology to be used by companies to organise the transmission of shortterm knowledge and knowledge management in the long term. The guide adapts to the specific context of each company and is designed to appeal to all types of businesses (both large companies and SMEs) while providing a precise methodology and described step by step plan. The guide is divided into 5 parts and its reading can be modularised. The first Introduction section aims to describe how to use the Guide. The reader will find in Section 2 Assess Your Business enough information to support the development of new ideas to that should motivate the organisation to implement a strategy of deployment and transmission projects and knowledge sharing. It can also evaluate the business based on representative issues of good practice (diagnostic tools). Four diagnostic tools are available in the Guide : The aim of diagnostic tools is to shed light for companies in their current environment on what plays a role in supporting or opposing a strategic approach to transfer and knowledge sharing. In general, these four diagnostic tools are designed based on the results of the good practice guide to support the development of specific projects and actions. 1. The diagnostic tool Knowledge Transfer is intended to assess the state of the transmission and sharing of knowledge within the company, at its functional entities. It is designed to be used before or after a proposed transfer of knowledge is initiated to assess the impact and raise awareness to all stakeholders. 2. The diagnostic tool Knowledge Management is designed to assess more broadly the state of knowledge management within the company. It is designed to be used at the starting point of a project to assess the needs of all parties concerned in terms of knowledge management. SHAPING TALENTS SURVEY CEEMET 33

35 3. The diagnostic tool cultural maturity is designed to identify the obstacles or facilitators within the company to support the transfer and sharing of knowledge. In other words, it aims to suggest how the company is ripe or ready to engage in cultural activities and the wider culture transmission and knowledge sharing. 4. The diagnostic tool Transmission Strategy and Knowledge Management is designed for the use in both, the optical transmission of a project as well as for the development of project management competences, but its use necessarily occurs after use of the diagnostic tool 1 (in the case of a proposed transmission) or the diagnostic tool 2 (in the case of a draft knowledge management). The importance or need for a transfer or knowledge management tool is established (resulting from previous tools). Its purpose is to help companies to clarify their strategic needs and actions to be implemented. Sections 3 Establish a process of knowledge transfer and Section 4 Deploy strategic management of knowledge address specifically how to install a process of knowledge transfer and develop a program to enhance strategic management and knowledge within a company. Both sections are organised similarly and offer support : to deepen existing knowledge ; to widen the scope of the fields to provide a description of the actual steps. The last section of the guide, Conclusions, recalls the critical success factors in the context of the implementation of transfer projects and/ or strategic management of knowledge. Tools-sheets, illustrations and points of attention are routinely proposed through the guide. The development of the guide has been validated with different organizations and companies. It was enriched with two case studies of SMEs in two provinces of Liege, Luxembourg and the development of a mini guide for SMEs. Outcome 6. Further steps The development of the Guide is not an end in itself. A communication strategy around the guide has been developed (leaflets, seminars ). The goal is to make businesses aware of issues of strategic management knowledge and support them in the development of transmission projects. Each project is unique, fits the context of business and is accompanied by the introduction of various tools (Plan transmission, webcast..). 34 SHAPING TALENTS SURVEY CEEMET

36 Switzerland CH01 : Providing excellence in c VET Association Line of business ; products and services Focus of initiative SWISSMEM Training Provider, Employers Association Flexibility and responsiveness through cooperation Project Summary SWISSMEM, an association representing the mechanical and electrical engineering companies and the metal industry, again received awards at the WorldSkills competition for vocational professions in London in Switzerland ranked third just behind Japan and South Korea, after having been placed second in the previous year. The secret of SWISSMEMs success lies behind its long tradition in vocational training, the strong cooperation with leading to experts, VET schools, technical colleagues and companies to develop up-to-date generic courses covering the company s actual needs. Furthermore, SWISSMEM offers three types of training methods in the field of management, including long term courses, weekly seminars and company specific training and consulting (all for middle and lower management). These three types of training can be combined to the specific qualification objectives, demanded by the labour market. The provision of long term courses allows the development of over 17 different types of leadership, training and coaching qualifications. Weekly seminars support the qualification and the exchange of experience among key personnel to have an immediate effect on productivity by improving business processes. Finally SWISSMEM offers consulting and training services to analyse firms internal management training needs identified in cooperation with the company s management and experts from SWISSMEM to offer on the job training solutions. As SWISSMEM has recently started collaborating with the Kaleidos Fachhochschule (college in economics), the partners are now in the process of developing a Master degree course adjusted to industry specific fields. This will create career pathways for VET graduates to obtain higher qualifications and thus create a direct link between cvet and higher education institutions. Furthermore, this network is set out to respond to the increasing need to combine business and management skills, with technical competencies, creating excellence in leadership skills. SHAPING TALENTS SURVEY CEEMET 35

37 Germany DE01 : A blended learning approach to update managerial competencies Company name Miele & Cie. KG Personnel in Germany > 600 Line of business ; products and services Home appliances Focus of initiative Developing leadership skills/ Blended Learning Project Summary Miele & Cie. KG, a German home appliance manufacturer anticipated a distinct need for more general management knowledge at all levels in order to have greater control over its global operations in regard to the company s strategy for sustainable growth, while at the same time encouraging the entrepreneurial and innovative spirit of each unit. The overall objective of the initiative was to give all new leaders, regardless of their departments, a common perspective on the enterprise- wide procedures and processes, including the knowledge of basic and new management techniques and the enterprise-wide acquisition of soft skills for the successful implementation of management tasks. Learning Outcomes : Understanding of leadership and leadership roles Knowledge of oneself : Who and how I am? How well I know myself (as a manager)? Cornerstone/ instruments of personnel management : organise, motivate, delegate, develop, decide, give feedback, inform, communicate, ask questions, instruct, assess performance and potential Creation of successful teams Develop goal-orientation Practice typical conversational situations with employees / internal (e.g. appreciation and criticism, wage negotiations) as well as learning to deal with the works council manage conflicts learn to use the annual staff appraisal as a management tool for Miele handle day to day situations for newly appointed managers (such as young lead old, from colleagues to manager ) cornerstones/ instruments of managing : culture, strategy, design of organisational structures and processes, planning and control (controlling), measurement and evaluation (indicators, benchmarking), forms of representation in management (e.g. portfolio), Balanced Score Card implement changes successfully Self-management and organisation 36 SHAPING TALENTS SURVEY CEEMET

38 Blended Learning Approach : 1. Classroom training (4 x 2 Intensive Training Days) : In four two-day, consecutive modules the participants are intensively involved in their daily management challenges. New knowledge and ideas can be tried out immediately in practical exercises. Between each two- day module is a multi-week practical phase. This ensures an immediate realisation of the positive attitudinal and behavioural changes resulting from the training on-the-job. So for each participant, the results from the training will be directly tangible and measurable. In the successive praxis module all participants are able to present their new skills and knowledge gained from the initiative. Future education course will build up on these experiences. 2. Interactive web-based training (50 Hours) : Between the practical modules, the content of the lessons of the classroom training is supplemented and deepened via online training. The web content has been designed, so that participants can only enter the next learning steps if they have successfully verified their knowledge (equivalent to 80% correct responses). The web-based training is actively supported by an experienced tutor. 3. Extra-occupational transferable tasks (6 Month) : The practical problem is formulated by the participants in consultation with their manager and implemented directly in the workplace during the six month program. 4. Reminder mailings and coaching calls (Additional 12 Month) : To ensure a sustainable anchoring of the curriculum, even after the end of classroom training, each participant will also receive a follow up , which builds upon the important topics of the training (over a period of one year, every four weeks). This way the participants are also encouraged to implement key aspects of the training or obtain further information by querying, for example to access online support on the topic or to download the associated training reminder card ( after training ). In addition, participants will have the opportunity to clarify questions and receive tips to handle concrete and practical situations with their coach, during and after the training. Two additional coaching calls per subscriber are foreseen in order to facilitate the transfer into sustainable management practices. Evaluation and assessment of the learning outcome and progress is done by the participants manager. 5. The personal preparation of the participants : To fully benefit from the active practice time, the participants receive specific preparation documents. On the basis of specific questions about their personal situation and their personal goals and expectations, they can be optimally prepared for the qualification. At the end of each training day, participants receive a preparatory task for the next training day or the next training module. 6. Role and task of the senior management : The senior management plays a special role. They accompany their employees, by monitoring the learning outcome and success of the workforce and by supporting the employees to find a suitable transfer task and other opportunities to develop. An Information Event involving all managers takes place in advance of the program, to discuss the learning outcome of future managers and to set up the programme in cooperation with the personnel development department and the training partner PROAKTIV. SHAPING TALENTS SURVEY CEEMET 37

39 7. The completion of the qualification : testing and individual level analysis On the last day of the presence phase, participants demonstrate that they can apply the acquired knowledge. Participants are placed into a practise orientated management situations by a coach and another external observer. During role plays and case studies, participants are able to illustrate that they can solve a complex management situation successfully. The results do not just illustrate the completion of the programme ; they also provide the participant with an individual competence analysis. After successful completion of the course, Miele rewards a certificate FÜHRUNG UND MANAGEMENT KOMPAKT to all participants. 8. Persons involved : Responsible for the program and monitoring : human resources development department Training responsibilities and implementation : External partner with a fixed, permanent trainer, e-tutor and back office, content mediation via representatives of human resource development department organisation : human resources development department in close cooperation with external partners Guests : Members of top management as part of a "Meet the Manager 'evening, a member of the award giving ceremony management of participants : monitoring and evaluation of the implementation ; selection and monitoring of the transfer function 9. Cost / budgeting : The cost of the operation bears the respective department of the participant after prior consultation and designation process with the human resources development and human resources department. Budgeting is part of the annual training needs analysis. Outcome Through the training program all newly appointed managers could acquire a uniform base of knowledge and experience. Furthermore, a high value is created and maintained in the network. Feedback and appreciation from the previous participants were very positive, as well as feedback from the managers of the program participants. An evaluation over a longer period of time was not yet possible because the program exists only in the second fiscal year. There were some limitations to the programme concerning a few individual participants, but these could be quickly clarified or corrected. This has mainly been a result of the scope and intensity of the program (in particular the necessary time on the learning platform) which was sometimes underestimated, leading to individual pressure situations, for some participants. As a result the periods between the presence phases were extended for future programmes. A modern, innovative and high quality training program in the form of a blended learning concept in the described manner significantly increases the liability, the acceptance and the willingness to learn. Certified programs and the associated tests and exams further strengthen the effectiveness of this initiative. Since the qualification and their existence is not linked to the actual management contract, the higher learning demands are accepted in a sense of investing in their own abilities by the participants. For further activities, Miele considers implementing a group workshop to be held one year after the training to manifest and reinforce the results. The context and the organisation of the program is constantly monitored and optimised and first experience with international implementation of the training programme will be made shortly. 38 SHAPING TALENTS SURVEY CEEMET

40 DE02 : Implementing company-wide staff retention strategies Company name Ford-Werke GmbH Personnel in Germany > 500 Line of business ; products and services Automotive Focus of initiative Retaining staff to respond to demographic change Project Summary Ford Werke GmbH, identified the need to anticipate an ageing workforce, particularly in its operational departments and to take adjusting measures to prepare its workforce for a longer working life, based on the change in statutory pension in Germany, with the retirement age having risen to 67. Furthermore Ford experienced a challenge to respond to a lack of qualified talents based on the demographic change and a reduction in technical interest among young talents. As a result the company has taken three training initiatives to retain a competitive workforce : 1. Dual System : Ford anticipated a lack of VET graduates to fill positions, by providing needs- tailored custom fit training solutions between technical and managerial training using a dual system of education and creating synergies between the two. Double qualification combine IVET and Higher Education (Including Engineering and Business studies) High efficiency through permanent practical work experience at Ford 2. Target new talents pools : Ford has a strong stake in providing entrance qualifications and support for young people to increase the level of VET graduates and runs successful initiatives such as FIT Frauen in Technischen Berufen (Women in technical occupations) to attract more women to technical fields. EQ : Entrance Qualifications for Youth : 11 month programme designed for disadvantaged youth to carry out value added activities in production Preparation of students for VET, giving students a higher chance of entering into a work contract FIT- Women in technical occupations : Targeting high qualified female graduates Attracting female talents to technical sectors Targeting female graduates is not enough. Creating interest in technical fields for young women has to start at an early school stage and is there a responsibility of schools and parents. SHAPING TALENTS SURVEY CEEMET 39

41 3. Health and integration management : Ford has incorporated health and integration management into its operations and the job profile of its managers in order to reduce the high level of absenteeism of older workers and early retirements due to health issues and to retain the long term employability (Health, Motivation and Performance). Managers were asked to monitor the main health risk and reasons for absenteeism, which were then evaluated at company level with the support of outside specialists. As a next step Ford took company-wide preventive actions to deal with these issues. One of the main objectives is to set up an early warning system for performance changes in the workforce and to reintegrate performance changed employees into the company by either improving the employability or by adjusting job roles. Due to strong workload pressure, the incorporation of health and integration management into the job profile of managers was not universally accepted by all the managers. Therefore the company is now considering hiring a full-time health manager. DE03 : Open career pathways to the low skilled workforce Company name SKF GmbH Schweinfurt Personnel in Germany > 500 Line of business ; products and services Rolling bearing industry Focus of initiative Upgrade low skilled workforce Project Summary SKF GmbH Schweinfurt introduced a voluntary training scheme offered to its employees to become trained CNC machinery or facility leaders. The lack of qualified talents in these professions imposes strong risk for the firms medium term competitiveness due to capacity limitations. As a result the company decided to transform some of its untrained workforce into qualified employees. The company cooperated with a network of regional social partners including employment service institutions on a regional and national level and several education institutions, to provide guidance and financial support. Outcome The approach was very well perceived by the employees and the management, while the main limitation was the limited number of training places available. SKF GmbH Schweinfurt will continue to upgrade the competencies of their workforce in order to prevent future skills shortages. 40 SHAPING TALENTS SURVEY CEEMET

42 DE04 : Investing in Entrance Qualification (EQ) Company name Personnel in Germany Line of business ; products and services Focus of initiative CareFusion Germany 234 GmbH employees Medical Technology Entrance Qualifications Project Summary After experiencing a lack of applications in the field of electro technology, CareFusion Germany 234 GmbH implemented an Entrance Qualification Scheme to support interns to gain experience in technical, social and personal skills with strong support via the management, the trainer and the supervisor of the specific field of the intern. The supervisor must be personally and professionally capable to deal with the needs of the intern and to cooperate with the IHK (Chamber of Commerce) to develop a suitable training plan and to cooperate with the payroll and finance department, make evaluation talks and enter the intern into the VET school at the end of the programme. The supervisor stays in contact with the student until the end of the VET programme and graduation. Outcome As many youth lack the necessary entrance qualifications, this type of project should be strongly supported in terms of funding, as the initiative improves employability of young people while also allowing the company to meet their specific skills needs. Management and other employees need to be sensitised to the stronger need for supervision of the student to achieve a better results vis-à-vis the training. SHAPING TALENTS SURVEY CEEMET 41

43 DE05 : Introducing lean management during short work Company name Personnel in Germany Line of business ; products and services Focus of initiative Webasto- Edscha Cabrio GmbH >500 employees Automotive supplier Lean manufacturing during short work Project Summary Webastio- Edscha Cabrio GmbH experienced a constant need to develop its workforce to respond to negative location factors in the recruitment process in comparison to companies in conglomerate regions, the need to deal with a highly complex product, which requires a continuous update of competencies and new innovations in the field of manufacturing engineering. Objectives : Securing adequate talents through education, even in marginal occupations such as vehicle upholsterer Quality and Lean Management Training in the manufacturing sector for the successful implementation of corporate strategies Specific training to ensure innovation leadership training for the successful implementation of corporate strategies Quality and Lean Management Training in manufacturing : Webasto- Edscha Cabrio GmbH implemented a quality and lean management training scheme in manufacturing during working hours in autumn 2010, planning the contents in cooperation with training providers, plant management and production team leaders in order to respond to the company s internal needs. The approach had the objective to integrate general management knowledge into the technical specifics of the company. The initiative was supported via funding from the employment agency and the European Social Fund (ESF). Outcome The overall motivation of the employees was very diverse, but generally good (some people would have preferred to stay at home during short-time work. The company has seen strong benefits in production and would benefit significantly strongly from investing more time and resources in this training initiative. In the next 5 years, Webasto- Edscha Cabrio GmbH will introduce new apprenticeships and programs on Dual Education. 42 SHAPING TALENTS SURVEY CEEMET

44 Spain ES01 : Improving business processes for greater competitiveness Name of Association Line of business ; products and services Focus of initiative AECIM (Metal Employers Organization for the region of Madrid) Training Provider Lean Manufacturing Project Summary Qualitative Skills demands of Spanish MET Companies : As AECIM has direct contact with its partners, AECIM can study the qualitative needs required by its member companies. In this respect, from the AECIM training department, it was detected that last year businesses demanded training actions that allowed them to widen their business field as well as their competences regarding, for example, a greater efficiency in their assembly line in order to both reduce costs and make possible the provision of higher quality products in less time. Many companies have found a solution to the crisis by exporting their products to other countries. Hence it is of key importance to accomplish training actions on languages, not at a general level, as it had been done so far, but rather at a much more technical and concrete level, fully focused on the job to be performed. The company expansion to further foreign markets without having the possibility to hire new staff urges and requires the maximisation of existing resources within the company. The extremely difficult economic situation in Spain makes more important than ever to provide training to upgrade the personal skills, especially to improve the way to negotiate and deal with customers and suppliers. In line with the above referred factors, AECIM has identified the following skills needs : Training in management systems such as LEAN MANUFACTURING which allow companies to reduce costs, increase the product or service quality in a context of customer-orientation and good working environment. This becomes especially important in those companies whose assembly line are large and thus need an optimisation of both qualitative and quantitative resources. Another training course very demanded by companies was English in the industrial environment ( Communication Techniques Directed to Industry ). This course allowed companies to get familiar with some little tricks facilitating the communication techniques with other partners. Particularly in SMEs, where resources are limited and training one employee is more productive than hiring someone else to cover the specific need, this action was very praised and valorised. In the field of personal skills, AECIM noted the need for both small-sized businesses (SMEs or self-employed persons) and large enterprises to be trained in the field of negotiation. From the point of view of small-sized business, negotiating correctly with suppliers, customers, and even with their own employees, becomes crucial to survive in a more and more global market under the present economic context. SHAPING TALENTS SURVEY CEEMET 43

45 AECIM Training initiative on Lean Manufacturing : This course was chosen because each year companies face a reduction in the number of customers, therefore also in their turnover, and the only way to remain competitive in the market is through the adoption of a management system allowing to reduce costs without decreasing (all the contrary, increasing) the quality of the product or service. For that purpose, companies must adopt a lean management system, based on the elimination or reduction of all those activities that do not generate added value to the final service or product offered. Among the participants in this training action there were a number of heads of departments from different companies, who as a result of the training received, implanted this system in their own production lines. This in turn provided an added value to the training action itself, as they contributed in ulterior courses of the same action sharing their experiences. This course was partially financed (more than 50% of the total cost) through the training credit bonus available for companies. Outcome How effective was the training method used? The above presented training action was successfully implemented and the participants overall satisfaction level (evaluated at the time of the training course) marked 3.7 over a 4 scale. The only limitation that should be emphasized is the need for a shift in the mentality and way of working of operators, as many of them have already an extensive experience in their work, thus having a great difficulty (sometimes also reluctance) adopting new ways of working. The most significant result is probably the high number of participants in the training action referred, in consideration of the relatively new subject concerned. In fact, many people in the market are not even aware that there exists this type of training. This result clearly indicates that companies are seeking alternatives to strengthen and improve their market share particularly through the lowering of costs increasing their competitiveness level visà-vis with competitors. The main support for businesses is undoubtedly the economic aid. Investment in this type of training is often so important that even if companies see the need to put into practice that training, it is impossible for them to assume its cost. 44 SHAPING TALENTS SURVEY CEEMET

46 ES02 : Implementing external, cross-department and intra-department training Company name Personnel in Spain 116 Line of business ; products and services Focus of initiative GH Electrotermia, S.A. Capital goods company External, cross-department and intra-department training Project Summary Due to the advanced technologies applied in the manufacture of special machinery, always with sophisticated technology and in continuous development, the company personnel must be trained from the basis and constantly in full personal and technical development, as well as with regard to the use of computerized tools at all levels, i.e. industrial, commercial, financial and administrative level. Each year, the company elaborates the Annual Training Plan, within the overall Strategic Company Plan. The HR Department first submits a questionnaire, along with the company goals for the year concerned, to all the Company s heads of unit. In contribution with their personnel for which they are in charge, the latest provide the HR department with a set of the specific needs. Those needs are then gathered and completed by the HR department and presented to the Directorate General for its knowledge, consideration and approval of the budget. The annual training plan is used for hiring purposes and its achievement is monitored and evaluated. This is established in the ISO 9001 Procedure and the plan is subject to both an internal audit by the company and an external audit by the certification body. Further to training in Labour Risks Prevention, Environmental Protection and Innovation, the Annual Training Plan has three axes : External, Cross-department and Intra-department. (i) External Training : The selection of the training method depends on the availability of the person(s) beneficiary of the training action, as well as on the HR departments trust on the organism/consultant providing said training action. The company also offers E-learning, I-training and distance-training. As for the investment, the money devoted to certain training actions planned can partially be financed through different Employers Organizations, such as FEMEVAL, via the open training subsidized plans in which the company takes part. Another possibility is to claim the Tripartite Foundation for Training (a public Body) for the corresponding Social Security rebate, though this option is hardly taken by the company due to the tough and demanding conditions to be met for a large company like GH (SMEs are given priority). Training actions can be planned by consultants in accordance with the company goals and their adaptability to meet the company specific needs. Sometimes, specific training actions (technological innovations) are directly proposed by the employees or Heads of Unit to the HR department, which approves them. Training and personal development actions are not implemented in consideration of the budget, but rather according to the identified and approved needs. The Plan remains open to the inclusion of any other relevant action which is deemed to be necessary during the course of the year. The budget is elaborated disregarding the possible bonuses (financing), due to the high bureaucracy that these entails. SHAPING TALENTS SURVEY CEEMET 45

47 Training is mainly given outside working hours, even on Saturdays. Yet the major obstacle is always the lack of availability and opportunity, due to the heavy workload. Examples of External Training Initiatives in 2011 (inside and outside the company) : Languages (English, Germany and Chinese) ; computing processes (SAP implantation in the Commercial department and in the technical assistance service) ; recycle in electrical industrial design ( e-plan ) ; personal development of intermediate-level managers ; innovation within the equal opportunities plan ; new sales strategies and branding ; community manager and online shop ; lean manufacturing and project management ; welding standardization ; talent management ; etc (ii) Cross-department and Transfer of knowledge among the company s departments, since said knowledge refers to specific company developments. Examples : The Induction applications to engineering department (and some others) shared knowledge on R&D+i with the commercial and the technical assistance service departments. (iii) Intra-department Transfer of knowledge among colleagues from a same department to make the most of the training provided to one or two of them. Example : sales strategies in the commercial department ; or program design in the engineering department. Non-formal (but real) training is also possible at any time to get an in-depth knowledge of what other colleagues are doing, in order to improve teamwork. In the GH Group company, it is important that internal training is considered as an investment in productivity and in the flexibility of the company staff. Outcome The GH Group company has always filled its vacancies, but some positions have been more difficult to cover. For example : sales engineers, mechanical design engineers handling 3-D programs. The greatest difficulty is always finding candidates fluent in languages (English, French, German ). The company deems that there is a worrying lack of training as far as social skills are concerned. Similarly, it observes that the candidates considered often show a lack of real motivation to become a qualified professional, irrespective their academic background. 46 SHAPING TALENTS SURVEY CEEMET

48 ES03 : Responding to new skills needs Company name GRUPO MONZÓN, S.A. Personnel in Spain - Line of business ; products and services - Focus of initiative Training to improve competitiveness Project Summary The training initiative was mainly adopted in consideration of the current difficult economic context, affecting every single company, trying to adapt to the new scenario. In times of crisis, companies must optimize their processes. They should be more competitive and provide customers with the best possible service. Having these premises in mind, the participants successfully welcomed the training received by the company, because they felt themselves part in the company changes. Following the business strategy of the organization, improving SKC has been determined by manifold factors such as the following : the absorption of a competitor company ; the entering into new markets ; or the introduction of new products (the company policy of risks diversification has led it to entering into existing markets with new products). Having introduced new products, the company had to train the employees in the technical specificities of those products. The company size, the business organization, the profile of the employees in order to design a skills-based training for them, direct and indirect costs of training, the kind of matter to be taught in the training, etc.. On the other hand, up to 80% of the training provided was subsidized by the Tripartite Foundation for Training, and computerized tools and specific machinery were used for training purposes, according to the requests of the employees responsible for each of the company departments. Outcome The effectiveness of the training was evaluated through several theoretical and practical tests. On the other hand, the impact/benefits of the training provided are still being pondered at present. The main outcome perceived are the greater involvement and motivation of the employees trained. The company hopes that this will in turn improve the productivity level to some extent. The only limitations/obstacles found were the direct and indirect costs of the training actions imparted. There should be a greater financial support from the training institutions. SHAPING TALENTS SURVEY CEEMET 47

49 ES04 : Improving customer after-sales services Company name Personnel in Spain - Line of business ; products and services Focus of initiative GRUPO PALMA Automotive Improving customer after sales service, Motivation (incentives for performance) Project Summary The training initiative was decided and carried out with the aim to improve the after-sales service in times of crisis, which affects especially the automobile sector. It began as a recommendation from the company brand to a certain number of dealers, and soon became an initiative in itself from the company management. Objectives : Further to the company s strategic business plan, the upgrade of its employees skills and competences has been determined by the following factors : Introduction of a program to coordinate the after-sales service, based on the control of technical indicators (occupation, productivity, efficiency) and other associated indicators (turnover, etc.). The goal was to improve the outcomes as far as customers retention and satisfaction is concerned. Adoption of attractive after-sales marketing policies to be in line with those introduced by the company s competitors. Introduction of new work systems based on a fully-oriented service to clients upon their reception. This consisted mainly in an in-depth analysis of the vehicle in the presence of the client, informing him/her about all the observations and conclusions from that analysis, even before the client requests a specific task on the vehicle. Initiative : In order to introduce the above-referred work system, the skills needs were detected by the company at internal management level. 1. Identification of the personnel involved in the implementation of the new work program. 2. Identification of the tasks undertaken on each job position (an analysis was made in this regard). 3. Development of generic and specific training actions that needed to be provided to attain the new objectives. 4. Setting up of daily meetings of intermediate- level managers with the employees they were responsible for as well as weekly meetings of intermediate-level managers with the company management. 5. Development of specific actions to coordinate the after-sales service, etc. The effectiveness of the new method could be assessed every week with the control and monitoring process developed by the company. At present the company is trying to strengthen the Program through the development of better incentive policies on performance at both individual and collective level. The company shouldered all direct and indirect costs arising from these new work systems. 48 SHAPING TALENTS SURVEY CEEMET

50 Outcome Two main visible outcomes were, on the one hand, an increase in the sales volume at the reception and on the other hand a greater motivation and involvement of the employees as they were unexpectedly compensated by their effort. Recommendations : A greater financial support from the training institutions would have been desirable, as the company had to assume the totality of costs incurred as a result of the implementation of the new programs. ES05 : Retraining the workforce to adapt to new skills for new markets Company name Personnel in Spain - Line of business ; products and services Focus of initiative Grupo Vento Business of designing and manufacturing industrial machinery New skills for new markets, retraining Project Summary Against the background of increasing global competition the company identified a generic need for specialisation. One of the main factors for success in this environment lies in the company s flexibility to adapt quickly to changes of the industry and the markets in order to meet the customers needs and expectations (e.g. changes in the customers preferences, emergence of new products, etc.). This required an extensive reorganisation of the company s operations. In order to drive this transition the company s management set up specialised working groups in the following areas. Markets (real and potential) Providers (providers market, capital market, HR market ) Competition (number and importance of competing products and their characteristics, distribution channels, etc.) Congruence between marketing and the real needs of the target market, etc. The restructuring formed the basis of the initiative, requiring a broadening of job profiles combining technical and international skills and competencies and creating a demand for new positions such as international welding engineers and sales agents with proficiency in several languages. The management of this initiative was welcomed with enthusiasm by the company staff, as they could upgrade their qualifications as a consequence, being trained in new knowledge and skills levels, thus setting the path for new career opportunities. SHAPING TALENTS SURVEY CEEMET 49

51 Outcome The effectiveness of the model used was very high. The management gained greater control of its international operations based on the established indicators identified by the work groups and completely fulfilled the companies objectives. The main outcomes of the initiative were : 1. The restructuring of the organisation, making it more flexible and adaptable to market changes 2. A higher and broader skilled workforce which is more flexible to take on different tasks 3. A better positioning of the company vis-à-vis its competitors The obstacles have been minimal, since the employees were very encouraged with the new opportunities for job retraining and the possible economic improvement linked to new opportunities. ES06 : Training in languages Company name Personnel in Spain - Line of business ; products and services Focus of initiative MECANIZADOS, S.A. Metal- Processing Internationalisation to respond to less national customers Project Summary Training in Languages : Due to the change in the type of customer, the company has to deal with less national customers and more international clients. Therefore, an improvement in the knowledge and command of languages is needed at all hierarchical levels involving management and production positions. The management s decision fell on a specific continuing training plan fully adapted to company needs in terms of content, levels and time schedules as training on generic languages was not considered as useful or valid due to the technical nature of the operations and different individual training needs and working time schedules. The company made use of training credits. Outcome The referred particular adaptation to the company real needs has achieved a high level of acceptance among the participants in the training actions, as well as excellent results. 50 SHAPING TALENTS SURVEY CEEMET

52 Finland Unfilled vacancies and problems in recruitment in the Finnish Technology Industry According the sample based yearly survey by the Confederation of Finnish Industries 45 % of all respondents among the Technology Industry companies had faced qualitative or quantitative problems in 2010 in recruiting personnel. The Consulting Engineering and Information Technology companies faced problems in recruitment more often than the other Technology Industry sectors. However, in absolute numbers it seems that mechanical engineering industry needs skilled workers in installation and welding most urgently. The study carried out by the Federation of Finnish Technology Industries in 2010 among the about 1600 member companies also indicates that the situation is most severe in metals and mechanical engineering industries. This is partly due to high retirement rates in these sectors. A shortage of competent information technology personnel and design and planning personnel came up in this study as well and was anticipated in view of the growth potential of digital services and the need to improve the productivity through a better use of ICT both in private and public sectors. The small and medium sized Technology Industry companies faced and foresaw skills shortages and recruitment problems more often than the companies on average. The change in the value of order books remains very uneven among the companies since the 2008 recession. This makes cooperation between industry and education and training institutions also challenging. According to different jobs categories there are skills shortages particularly in the following areas of expertise : Information Technology Personnel : programmers, technical architects, software experts Welding personnel : welders and special welders Technicians and supervisors in metals and mechanical engineering industries Installation personnel : electricians Development, design and consulting in several customer business areas To remain competitive the companies and their personnel increasingly need to master not only a single but several technologies and the latest developments in those expertise areas. Furthermore apart from the technical expertise other competences, such as understanding the customers needs and business, solution and service sales competences, social and communication skills, project management skills, overall system level thinking e.g. in terms of factors having impact on profitability or energy effectiveness, are needed today in all technology industry jobs. According to the survey carried out by the TRIOplus program in 2010 (see FI02) the shortage of skilled workers and expertise needed was seen by the 200 company respondents the most severe hindrance for business growth in the medium term. The Technology Industry companies employ in Finland about people. In the coming five year period employees are likely to retire every year from the Technology Industry. According to the Statistics Finland the size of the working age population (15 65 years old) will rapidly decrease in Finland from 2010 onwards. SHAPING TALENTS SURVEY CEEMET 51

53 FI01 : Collaborating with students to enhance its networking capability Company name Personnel in Finland 10 Line of business ; products & services Focus of initiative Copax Oy - Metals and mechanical engineering ; the manufacture and assembly of welded and mechanised structures SME (cooperation with practice orientated HE) Projektipaja The Seinäjoki University of Applied Sciences project learning model trains engineers in the requirements of the technology industry (automation technology, information technology, mechanical engineering and production technology). 40 companies 20 teachers over 100 projects launched over 350 engineering students involved a total of 1,500 study credits earned Project Summary Copax Oy is an end-to-end subcontractor to the metals and mechanical engineering industry. The company s operational quality and reliability are founded on strong networking. Copax continually enhances its working methods and expertise, for example, in cooperation with students involved in the Projektipaja initiative at the Seinäjoki University of Applied Sciences. Copax Oy s original name, Yrityskehä (Company Circle), is a good description of the company s operating principle : networked SMEs supplement each other s expertise and their shared success strengthens the entire network. When small industrial component providers and subcontractors join forces to market and offer larger product entities, it benefits both the subcontracting firms and their customers. We re able to offer a competitive alternative to major, global industrial companies that are seeking to boost the efficiency of their procurements by reducing the number of subcontractors they employ. Networking enables small businesses to contribute to larger deliveries, and thereby familiarise themselves with the requirements of major companies and forge relationships with larger customers, says Juha Lahtinen, Managing Director of Copax Oy. Developmental targets look further than the next quarter : When the network was launched in 1989, it was a pioneer in networked SMEs cooperating in the mechanical engineering industry. Subcontractors working in different fields of the metals and mechanical engineering industry understood that delivery reliability and quality are issues that can t be compromised on, but can be reinforced through the systematic distribution of expertise. Copax has also recently invested in its own welding and assembly operations, via a merger, so working methods still require further polishing. We need to make continual developments in order to remain competitive. When compared to, for example, mechanical engineering in countries with lower personnel costs, our strength lies in our efficient, flat organisation. However, that alone is not enough. We have to continually develop our expertise in everything we do. 52 SHAPING TALENTS SURVEY CEEMET

54 Lahtinen singles out enhancing flexibility through automation and information technology as one of their most important developmental goals. It s the best way to increase overall efficiency in a flat organisation. When considering both expertise and investments, you have to look further than the next quarter. Copax s strategy is to grow into a company with employees within three years. I believe this to be a realistic growth target, as we ve been operating with a reliable subcontractor network for years, says Lahtinen. Projektipaja analysed core quality systems : Copax is enhancing its operations and expertise in cooperation with the Seinäjoki University of Applied Sciences School of Technology, as part of the Projektipaja framework of learning and collaboration. Cooperation began during a project in which students analysed Yrityskehä s quality systems and developmental requirements. Over the years, we d developed operations and working methods that had never been documented. During the Projektipaja project, we made good inroads into analysing this tacit knowhow and comparing it to our future competence requirements and developmental targets. The students helped us to conduct an analysis that we wouldn t otherwise have had time for. The analysis enabled us to collate our tacit knowhow into an operating manual and then certify it as a quality system, says Lahtinen. Projektipaja is a project learning model that was developed by the Seinäjoki University of Applied Sciences and is supported by The Technology Industries of Finland Centennial Foundation. Students enhance their technical expertise and project skills and capabilities by solving issues in real-life product and production development projects. Teachers and company representatives are responsible for providing guidance and feedback. We always have projects on the go for second- and third-year engineering students. Over 350 students and 40 companies have taken part in the projects. The results have been encouraging. Projektipaja has also received recognition for furthering knowhow of working life, says Kimmo Kitinoja, the teacher leading Projektipaja. Harnessing students innovativeness : Projektipaja offers companies new perspectives and fast and affordable assistance for product or production development. Typical Projektipaja development projects focus on logistics and product flows, production equipment design, manufacturing processes for machine parts, quality and quality assurance, and applied research into alternative materials. Other typical projects also include prototype design and manufacture, and the design and testing of their manufacturing processes. Our teaching programme has been designed to be flexible it s always adapted to the projects and companies in question. Projects can be up to 2 4 months long, and can employ both Finnish and international exchange students and students from several different programmes of study, says Kitinoja. Outcome The presence of students from different fields is an advantage for companies such as ours. The smaller the company, the more multi-skilled it has to be in all of its operations, says Juha Lahtinen. And it s important for the students to be able to gain a genuine understanding of the rules of working life while they re still studying. They re able to practise commitment, shouldering responsibility, and working with an eye to the future. During the projects, students learn planning, accounting and drawing, as well as documentation, team-working skills, how to manage customer relationships, and real-life project management, says Kitinoja. Juha Lahtinen considers activities like Projektipaja to be an excellent way for the company to introduce itself to young people and ensure a solid competence base for the future. It is easy to recruit familiar students as summer trainees and, later, as permanent employees SHAPING TALENTS SURVEY CEEMET 53

55 Projektipaja has been a route to employment for many students, confirms Mikko Ylihärsilä, a former student who participated in the Copax project and is now already working as a project engineer. Students may also end up working for subcontractors or customers, so the image they get of our company during Projektipaja is crucial, says Lahtinen. Kitinoja and Ylihärsilä remind us that one of the most important fruits of cooperation between educational institutions and companies is that the institutions are better able to understand corporate requirements and incorporate them into their study programmes. It s vital that students are able to put their studies into practice and solve real-life challenges and opportunities. Students may have the kind of innovativeness that can be shared with companies. Students dare to ask those stupid questions, says Ylihärsilä. Stupid questions are welcome, as they can generate wise answers. Working with students is rewarding, as they do not yet carry the baggage brought by prolonged routine passion and innovativeness are at their peak, says Lahtinen. FI02 : TRIOplus offers tools for growth and internationalisation Company name Fenestra Oy - Personnel 700 Line of business ; products and services Construction industry ; windows and doors Company name Personnel 47 Line of business ; products and services Focus of initiative Hydro Aluminium Salko Oy - Aluminium processing SME (cooperation with employers association and other partners of the innovation system) Project Summary The Federation of Finnish Technology Industries TRIOplus program supports the renewal, growth and internationalisation of technology industry companies in a changed global market environment. It aims to make 800 corporate visits that will lead to the activation of concrete development projects. Changes in the global market have had the harshest impact on those companies that didn t realise or dare to invest in development and innovation activities during the good years. The TRIOplus program seeks to identify companies developmental requirements, connect stakeholders, and offer tools for development, says the TRIOplus program manager, Harri Jokinen, from The Federation of Finnish Technology Industries. In Finland, the value of order books of companies in the technology industry is still about 40% lower than in As major principal suppliers are downsizing and enhancing their operations, smaller players in the metals and mechanical engineering industry are being forced to consider new approaches to revitalise business. These days, 54 SHAPING TALENTS SURVEY CEEMET

56 success demands more than just component deliveries networking, providing more comprehensive package deliveries, and capabilities related to selling global solutions and services are becoming increasingly important. Knocking strategy and operational functions into shape : TRIOplus offers companies three types of services : tools for growth and development, commercialisation services provided by Centres for Economic Development, Transport and the Environment (ELY Centres), and support for reviving companies under the threat of bankruptcy. For example, help is available for reshaping business strategy, improving board work, mergers and acquisitions, finding partners, or even for developing new e-commerce channels. Services are tailored to each company. During the three-year programme, experts who ve been trained at the Finnish Science Park Association s (TEKEL) local technology centres will visit about 800 companies to help them analyse their developmental requirements. The approximately 500 corporate visits carried out during the first year identified over 1,000 developmental requirements. One of TRIOplus most important goals is to increase SMEs exports. Its growth and development services help companies to analyse their own operations and go international. Over 70 companies are already participating in these developmental efforts. In the initial stages, our program provided support for enhancing operational functions. We re now adding tools to support strategy development, says Jokinen. SMEs do not always enjoy an extensive base of strategic management expertise, so a business analyst who tackles everything right down to strategy can provide a valuable sparring partner. And what s more, all this comes almost for free. On average, companies only pay about 20 per cent of the total costs. Competence analyses reveal developmental requirements : Companies that have undergone TRIOplus growth and development analysis have also undergone a competence analysis, which seeks to reveal key competence development requirements. Companies find that their greatest lack of competence often lies in, for example, strategy development, leadership, exports, sales and marketing, quality management, communications, and forging cooperative partnerships, says Harri Jokinen. Undergoing analysis and considering your own situation with an external expert helps to pinpoint a direction for future development. For example, companies often notice that cooperation with those in other lines of business is also necessary. If companies feel that the assistance offered within the TRIOplus package isn t sufficient, they can purchase additional days from the experts working in the project. There is also separate financing available for good projects, says Jokinen. Cooperation in the value network generates results : Transparent information flow has enabled Fenestra Oy, Hydro Aluminium Salko Oy and Pilkington Oy to boost their network s work efficiency and increase delivery reliability. Cooperation also enables them to ensure the availability of competent workers. Hydro Aluminium Salko Oy supplies Fenestra Oy with aluminium for its windows. Pilkington Oy provides the glass and Fenestra Oy s Kuopio factory the timber. If one of these companies or units encounters problems with production, it will have an immediate impact on the other companies. Therefore, the companies want to take pre-emptive action against any potential problems. The companies in the network established the TRIOplus -forum to improve information flow and cooperation. Company representatives meet once a month to go through the network s shared issues, such as upcoming orders and delivery volumes. Open communication has borne fruit. SHAPING TALENTS SURVEY CEEMET 55

57 Thanks to smooth information flow and shared benchmarks, we ve improved our delivery reliability and work efficiency, and reduced quality errors, say Jyrki Kataja and Jouni Niinikoski, factory managers at Fenestra and Hydro Aluminium Salko. Shared working methods hold a key position : Fenestra Hydro Aluminium Salko Oy, Salko Oy and Pilkington Oy have developed shared benchmarks to measure quality and delivery reliability, and to monitor order backlogs. The companies have also drawn up a shared set of rules. Companies in a value network often consider production and other operations only with regard to their own business. We now follow operations from the perspective of the entire network. We ve begun to understand others operations better and have noticed things that others could change in order to improve the efficiency of the network as a whole, says Niinikoski. Creating a joint forum for three companies has meant a move away from buyer-seller and main-subcontractor relationships towards genuine, equal partnerships. Previously, companies would blame each other for problems within the network, but now everyone knows where the others stand and there s no room for excuses. It encourages every company to take up the gauntlet. No one wants to be the weak link, the two men agree. The challenges of joint expertise : Openness works, because the companies have joint interests. Forethought also helps them to distribute their personnel resources more sensibly. If one section of the value network is experiencing problems, we can decide to do a shorter day tomorrow and stay longer the day after tomorrow, explains Niinikoski. Shared goals also support cooperation in competence development. Our factories are located only a kilometre apart. We ve discussed building up a shared workforce. If one of our factories is experiencing problems and temporarily requires additional personnel, then free personnel from the other factory can join and help to ensure that production doesn t grind to a halt, says Niinikoski. However, such close cooperation requires highly multi-skilled personnel. Not only do they need to be experts in their own field, they also need to learn new skills. A strong network is a good springboard from which to organise joint training and the transfer of expertise. The introduction of social media tools is the next step in making cooperation, internal communications and the acquisition of new skills easier within the network. The new platform, which is called Jobberi, enables employees of all three companies to converse with each other. Outcome We re already seeing the seeds of good results. I believe that it will give rise to both larger and smaller innovations and ideas, better ways of doing things. Of course, we also receive some criticism, which poses challenges for us managers, but it s the only way to develop, says Niinikoski. 56 SHAPING TALENTS SURVEY CEEMET

58 FI03 : Teaching sales personnel to adopt a new query-based sales process to better understand the client company s business strategy Company name Symbioosi Partners Oy - Personnel in Finland 20 Line of business ; products and services Business management consulting ; sales development and monitoring, sales services Company name Algol Technics Oy - Personnel 200 Line of business ; products and services Metals and mechanical engineering industry ; lifting and moving equipment, operational reliability Focus of initiative SME (cooperation with Business Management Consultants) Project Summary Algol Technics Oy has shifted from a product-oriented, argument-based sales technique to a query-based analysis of customers needs. This new sales approach helps customers identify their requirements and teaches Algol Technics sales personnel to understand the company s strategy. Algol Technics Oy offers product solutions and systems for lifting, moving and warehousing, and also provides associated upkeep and maintenance services. In order to remain competitive in the face of increasing competition, Algol Technics has increased its investments in factors that support its customers growth and profitability. We used to be an equipment and system supplier. Now, we also provide the customers with operational reliability, which helps our customers, boost profitability and the efficiency of their own production and logistics processes, even during those critical lean times, says Pekka Järvinen, Managing Director of Algol Technics. The shift from product-oriented operations to a partnership-based, service-oriented approach has meant a complete strategic overhaul. Customers have also been roped in to help. Our customers needs form the entire foundation for the change. We set out to reshape our strategy by approaching major Finnish industrial firms and asking them what they need. Our new strategy stems from customer benefits and our new way of working from a culture based on asking questions, explains Järvinen. Questions and active listening : It s a revolutionary approach that requires new kinds of skills and working methods throughout the organisation. Algol Technics material processing sales organisation plays the central role. Its sales personnel have the task of analysing customers needs and passing them on to Algol Technics other functions. Sales personnel gain an understanding of Algol Technics strategy through listening to customers. We ve developed a query model as a sales tool to support our strategy. The model provides a standard format for customer meetings and is based on questions arising from our strategy that is, identifying customer needs. Active listening and focused questions help us to form a clear image of our customer s situation. Often, the things we hear don t have a direct link to our products, but to our customer s problems, expectations and service requirements. SHAPING TALENTS SURVEY CEEMET 57

59 The sales team breaks down the insights they ve gleaned into our customers needs, decides on how to move forward with any issues that have arisen, and agrees on how to divide up the workload. Collaboration will then be continued with customers to develop the best possible solutions. A team of about twenty people is engaged in actively listening to customers, and they meet once a month to evaluate the effectiveness of their operating model. New sales mode poses a challenge for learning : Järvinen admits that switching from an argument-based sales technique to a query-based approach poses a challenge in an engineering organisation. Sales personnel have to learn to engage with customers without the protective wall afforded by their product. Our new sales process is akin to offering business therapy to our customers, although we mustn t forget our own business interests. It s clear that our new approach requires training and coaching. Sales personnel need to acquire new kinds of dialoguing skills, as well as broader ranging expertise in understanding and quantifying both their own and their customers business, says Pekka Järvinen. Symbioosi Partners Oy accelerates the adoption of the new sales technique : Algol Technics has sought training assistance and support for its new query-based sales process from Symbioosi, a company that focuses on developing and promoting sales. The experts at Symbioosi Partners Oy call themselves the next generation in sales. Their deft team has been involved in mobilising and leading the new sales technique, and team members have also acted as sparring partners for Algol Technics sales personnel. Symbioosi sprang up as an answer to the challenges posed by Finnish companies B2B sales in technological and industrial networks. Sales expertise has not traditionally been a strength in Finnish international trade. There are plenty of different marketing solutions out there, but when it comes to developing sales and facilitating adoption of new approaches to sales, companies have primarily been turning to personnel training and process consultants. Yet in recent years in particular, Finnish industry has became aware of the significance of sales to Finnish competitiveness, says Juha Mattsson, Managing Director of Symbioosi Partners Oy. Symbioosi s business is based on taking a long view with regard to sales development. Customers are offered analytical sales expertise and development, as well as concrete sales resources. Symbioosi offers trained sales personnel to boost companies sales, support sales directors in their work, and provides tools to measure results and develop sales and new sales channels. All of our operations are based on an analytical approach, facts, and research results. We don t, however, satisfy ourselves with a power-point approach we roll up our sleeves and do real sales work, says Mattsson. Competence development as part of customer relations : Juha Mattsson and Pekka Järvinen emphasise that developing sales expertise is vital to the competitiveness of Finnish industry. Yet successfully enhancing sales expertise requires companies to step out of their traditional comfort zones. Competence development often remains a predominately disconnected activity, which doesn t generate any kind of competitive advantage. Competitiveness comes about when competence and its development are integrated into your customers operations, so that your customers benefit, too, explains Järvinen. The brand new sales process has been well received among Algol Technics customers. 58 SHAPING TALENTS SURVEY CEEMET

60 Our key customers have worked with us to create, for example, shared Management Team practices. We meet regularly and work on any issues arising from our sales process, says Järvinen. Studying sales expertise : The creation of Symbioosi Partners Oy is part of the developmental history of Finnish sales expertise. Symbioosi is a spin-off of Sales Project, a joint R&D project run by the Schools of Engineering and Economics at Aalto University and companies in the technology industry. When Sales Project began, sales development in industrial and technological networks became a practical aspect of university teaching and research for the first time in Finland. Outcome Through Sales Project, Aalto University was able to create a full minor subject course on sales and build up a permanent centre of expertise. Students participating in Sales Project undertake joint projects and complete theses on companies sales work and management. During its initial stages, Sales Project focused on, for example, sales competencies, management, and processes. Since then, research and teaching have progressed to innovation sales and the challenges of selling value-based solutions and services. Sales Project seeks to take a scientific approach to sales, but at no stage do we want to remain at a purely academic level. Symbioosi Partners Oy was born because we wanted Sales Project to use not only the standard publication and teaching activities, but also to create new, innovative channels for bringing the expertise and know-how generated during research projects into practical use in the field, says Juha Mattsson, who was actively involved in launching and leading Sales Project. SHAPING TALENTS SURVEY CEEMET 59

61 France Preamble of the Metal Industry Agreement on vocational training signed on 1 st July 2011 The business world has undergone in recent years, profound structural change, accelerated by the economic crisis. Global competition, the acceleration of scientific progress and technological developments reconfigure the industry and its modes of production. This new context requires adaptations and permanent improvements of business, in innovation and value added, in the design, in the processes and in the associated services. The pace of these changes is a daily reality for employees, for large industrial companies, but also for SMEs and very small enterprises which represent the bulk of the industrial fabric. To respond to these changes which constitute further development and growth opportunities, we believe that it is essential to anticipate these changes and skills needs, to professionalise and qualify workers and job seekers, and to accompany, in the interests of securing career paths, internal and external employee mobility. We also consider that a genuine employment and vocational training policy in the branch, is a key lever to create the most favourable framework for the development of the metal industry, its jobs and the skills of its employees and their career path. In this objective, we want to find a balance : on the one hand, to continue to adapt and develop the skills and qualifications of the employees in industrial companies, allowing each of them to acquire knowledge and skills and to update them throughout the working life and on the other hand, to accompany the qualification and requalification of job seekers to meet the needs of skilled labour and to respond to the challenges of renewal in industrial companies, thus allowing their rapid and sustainable reintegration in employment. Following the interprofessional national agreement of 5 October 2009, and the Law of November 24, 2009 guidance and lifelong learning, the signatories decide, with this agreement, on readable and practical measures to adapt the training in the branch to the new economic, technological, demographic, societal and environmental challenges, as well as to the new legislative and conventional context. They agree to put in place the means for the industry to play a major role in anticipation of the evolution of professions and industrial skills, notably through the prospective and analytical professions and qualifications Observatory. They decide to reinforce the efforts, in partnership with all actors of information and vocational guidance, to better communicate on industrial professions and make more attractive scientific, technological and professional initial and continuous training pathways, leading to industrial jobs. In this framework, they reaffirm the major role of the sector and companies in the information, the advice and the vocational guidance of employees in industrial companies. They maintain their willingness to develop joint certification of professional qualifications for employees and job seekers, in the branch, both through training and through the validation of acquired experience. Beyond their anticipation of needs and certification policy, they reaffirm their willingness to adapt training to the evolution of skills needs of industrial companies and their employees for a horizontal vision with various industrial sectors. 60 SHAPING TALENTS SURVEY CEEMET

62 As such, they recognize the particular interest to encourage contractors and subcontractors / suppliers, in a same sector, to engage in a reflection on their respective and mutual professional training needs. They also reaffirm their will to develop partnerships with different actors, notably on co-financing. They thus wish to set an ambitious policy for initial and continuing training, tailored to the skill needs of businesses, in line with the requirements of professionalization of individuals, whatever their status, and allowing access for all employees to vocational training, especially the employees in SMEs and very small companies. Alternating training pathways, including through contracts (contract of apprenticeship or professionalization), and individualised trainings such as those implemented in the individualized technical training hubs (IFTI), constitute, with the system of certification and qualification, the basement of the device of the training policy of the branch. The signatories intend to strengthen the attractiveness of industrial professions, both for young people and for job seekers, including by improved guarantees of wages applicable to contracts in alternation. This agreement constitutes a new stage in the vocational training of the metallurgy industry policy and concretely participates in its ambition to employment and skills development in the industry. Through this unique agreement, the signatories provide, to all companies and their employees, readable and accessible information on the conventional law of vocational training. Finally, they express their confidence in the future of the industry, through the implementation of measures adapted, with growth and development, to effectively support businesses of any size, and their employees, to the realities of the industrial world. FR01 : Investing in training to retain a competitive workforce during crisis Company name Manitou Personnel in France > 500 Line of business ; products and services Focus of initiative Machine handling (industrial lifting trucks, lifting nacelles, compact loaders, material of storing ) Staff retention, competitiveness Project Summary The company business-model articulates around four sales regions (France, Europe, Americas and rest of the world), three markets (construction, agriculture and industries), three professions (designer, assembler, and distributor), five brands (Manitoban, Gehl, Mustang, Loc, Edge) and two world logistic centres of spare parts. Following a large production decline in the aftermath of the 2008 global financial crisis, Manitou decided to take advantage of the situation to improve the level of qualification of its workforce with the objectives : to raise the level of qualification of a large part of the population of workers and their management and to use a period of low activity to train operators via a qualifying training pathway co-financed by the State, the region and the company to maintain the employment levels of the different sites and to prepare the recovery. SHAPING TALENTS SURVEY CEEMET 61

63 The final objective of the training pathway for the operators is to obtain a Joint Qualification Certificate of the metal industry (Certificat de qualification paritaire de la métallurgie). To answer the company s needs in terms of competences, the CQPM that has been chosen is the one on Autonomous team-member of Industrial Production, and this for three reasons : It is a reference frame of competences corresponding to the present and future needs. Its content allows a horizontal approach of the trades (can be applied at different levels and to different professions within the company). Its content gives flexibility in the preparation of the dossier (validation of individual competencies before they are presented to the joint jury, employee can be re-evaluated on a particular qualification). The training sessions focused on qualifications defined and validated jointly, by employers and trade unions at sector level. This allowed the employees concerned to benefit from a certification recognised across all firms in the metal industry, thereby promoting later mobility, even if this was not the main purpose of the training program. The collective dimension is undoubtedly a factor for success. The setting up of this training was a formidable occasion to give the operators of the Manitou group a common content of industrial culture centred on safety, quality and continuous improvement. The certification of skills has been a valuable tool to improve the motivation of employees to participate in the initiative, with a low level of absenteeism (2.1%). Many actions of this type are carried out among the companies of the metal industry, but rarely at such a scale. Outcome The success of the joint initiative has encouraged the company to organise further training pathways, but this time for the management including a logistic technical assistant workshop (65 persons) and a workshop to form team leaders in production and logistics (37 persons) FR02 : Training disabled students Company name Personnel in France > 500 Line of business ; products and services Focus of initiative Alcatel-Lucent Mobile, fix and optical technologies and a precursor in the field of applications and services Reaching the 6% legal threshold for employment of persons with disabilities Project Summary The site of Brest in the West of France, as all non-industrial sites of Alcatel-Lucent, strives to move closer to the 6% legal threshold for employment of persons with disabilities. This is difficult with 95% engineers on the 250 employees, when only 4% of youth with disabilities are following higher education studies. The Group Alcatel therefore renewed in 2009 its three-year agreement with the unions and the administration ; its plans to use a budget negotiated with the AGEFIPH ( Fund Management Organisation for the Professional Integration of People with 62 SHAPING TALENTS SURVEY CEEMET

64 Disabilities ) to develop the integration of the handicapped young people. One point in the agreement concerns 80 recruitments within 3 years, notably through the (with an equal talent). The aim of this initiative is to help young people with disabilities to access a diploma after two to five years of studies after A-level and then to recruit them giving them confidence and placing them on an equal footing with valid employees. To develop this initiative, Alcatel has called upon the support of seven partners : the IUT of Vélizy, four major higher education schools, the rehabilitation centre of Mulhouse (for handicapped) and an association for the disabled. The criteria to choose these partners have been : the adequacy of the courses with the jobs needed in the company, the proximity of an Alcatel centre and the quality of their environment in terms of adaptation to disability. Successful students receive privileged access to the world of the company via a contract of alternating or internships. The company attributes to each young people with a handicap two tutors (one operational and one human resource based) to accompany them during their whole pathway. In addition to online access to the Alcatel-Lucent University training sessions, young people can have adjustments made on their work stations in the company and at the school. The program was launched in October 2010 for 15 students. Outcome Nevertheless the specificities of the company and the structure of its qualifications, with 95% of engineers was a major challenge in achieving the objectives. Companies are often criticized because they do not hire enough employees with disabilities. The difficulty often lies in the fact that the skills of these individuals rarely correspond to profiles that the company needs. It should be noted also that training centers specialized for the disabled are also struggling to complete sections corresponding to the industrial trades ; they lack students. SHAPING TALENTS SURVEY CEEMET 63

65 Italy IT01 : Supporting SMEs skills development via Funding Company name - Personnel - Line of business ; products and services IT consulting Focus of initiative Update skills Project Summary The company works in the IT consulting sector and therefore requires continuous training programs. The evolution in the market requires constant changes in technology and a systematic approach to develop skills and competences of programmers. An annual company training program was established between the managing director and the person in charge of training. The company collaborated with a training centre in order to locate financial support for its training programs. They made use of the funds provided by the bilateral interprofessional fund for industry (Fondimpresa) either having access to the company s account managed by the fund or answering to the notice of competition announced by the Fund. These considerations were based on training issues and professionals involved in the training activities and on the methodology adopted. Outcome On the basis of the results of the questioners, participants seemed very satisfied. All the training activities were conducted with active didactic methodology which included the classic teaching method as well as case studies and practical exercises. The interventions were effective and the company intends to continue to invest in training utilising both lines of financing provided by Fondimpresa. In some cases, if there weren t any financial obstacles imposed by Fondimpresa, like the requirement of a minimum number of participants, traditional classroom activities could be integrated with individual coaching. 64 SHAPING TALENTS SURVEY CEEMET

66 IT02 : Develop new skills for new markets Company name - Personnel - Line of business ; products and services Focus of initiative Control and management systems of methane pipelines Creating technical professionals, languages and marketing competences Project Summary The company works towards the realisation of control and management systems of methane pipelines and requires training both for the development of new markets (Mediterranean Basin) and for the development of technological innovations. On the basis of the company training needs the person in charge of training scheduled an annual training program which was shared with the founders of the company. The company collaborated with a training centre in order to locate financial support for its training programmes making use of the funds provided by the bilateral inter-professional fund for industry (Fondimpresa) either by having access to the company s account managed by the Fund or by responding to the notice of competition announced by the Fund. These considerations were based on training issues, professionals involved in the training activities and on the methodology adopted. The methodology chosen was conducted on the basis of different thematic areas to deal with technical, languages and marketing competences. The company is using both traditional training methodologies and experiential ones such as simulations, role play and case history. Initial feedback was extremely positive. Outcome The company is considering making new investments in training to update and upgrade the employee s competences. As the personnel are mainly composed of engineers the company intends to focus on training regarding new programming technologies and on soft skills integrating with hard ones. SHAPING TALENTS SURVEY CEEMET 65

67 IT03 : Using a blended learning concept to develop high level managers Company name SME from Vicenza region Personnel - Line of business ; products and services - Focus of initiative Blended learning, management training Project Summary Entering into new markets and the opening of new lines of business created a need to develop new managerial competences. The company has written a company training plan and established a specific budget for company training expenses. The company utilizes either consulting training agency and/or training centre. The methodology used is primarily on the job training targeted at high level managers. The training initiatives support the development of new competences regarding the following areas : Employees health and safety and environmental impact ; Technology linked to production ; Development of soft skills ; Computer skills ; Foreign languages And a variety of training methods (blended learning) via meetings, workshops, seminars, self-learning and through on line courses provides flexibility and efficiency in the training plan. The company further makes sure that company tutors are constantly updated about new innovations in learning. Outcome The key results were satisfactory. In order to support company initiatives personnel must be made to feel involved and responsible towards the company s objectives. Individual evaluation via written and practical tests was an effective tool to monitor the training effect and to achieve a high level of satisfaction of participants at the end of each training activity. 66 SHAPING TALENTS SURVEY CEEMET

68 IT04 : ITS Foundation - Collaboration between industry partners local authorities and education institutions Company name Personnel Line of business ; products and services Focus of initiative SELEX Galileo MNE SELEX Galileo, a Finmeccanica company, is a leader in defence electronics markets, with a distinctive strength in airborne mission critical systems and a wide range of capabilities for the battlefield and for homeland security applications. Cooperation between industry, national authorities and VET to improve the competitiveness of the sector Project Summary Selex Galileo updates and creates new skills, knowledge and competences (SKC) developing different kinds of training programmes. A number of recognised centres of excellence in technology development, as well as partnerships with governments, academic institutions and research centres allow the company to offer pioneering customer solutions. One of these training programmes is dedicated to high school students with high potential, and is called ITS Programme set between the end of high school and college. The ITS Programme came into practice following a joint agreement between FINMECCANICA companies and the Ministry of University and Research, aiming to enhance the technical intermediate figures of companies and to strengthen the impact of Continuous Education and Training (CET) to raise the impact of training to meet the needs of Finmeccanica companies as well as other small and large companies in cooperation with local authorities, schools and training institutions. The goal was to create centres of excellence in education and training whose contents are developed in relation to the strategic priorities identified for the country s and businesses economic development. Selex Galileo identified a specific need to develop new skills following a transition from a captive market to a new global market and the search for new business opportunities in emerging countries. The company identified the leading drivers of innovation, integration and internationalisation as a target for the new training activity. This target is pursued by developing scientific, technological, organisational, communication, marketing and language skills in technical resources. Subsequently a notice has been published with the application requirements. The next step consisted of the selection of those who had sent their application. Outcome To assess the effectiveness of training pathways, different kinds of evaluation tests are envisaged, together with the evaluations carried out by the teachers. The expected outcome is the growth of highly specialised technical figures, the so called tecnici superiori, able to operate mainly in the industrialization of mechanical or electronic product/processes and in the field of plant operation and maintenance. SHAPING TALENTS SURVEY CEEMET 67

69 Latvia LV01 : Making training available to all companies Association Network Line of business ; products and services Focus of initiative MASOC (Employers Association) Network of over 50 companies (SMEs and MNEs) Training provider Develop key competences for industry (particular SME) : welding, CNC machining and other special fields, as well as disciplines like project management, IT and languages Project Summary In Latvia, the association of Mechanical Engineering and Metalworking Industries of Latvia (MASOC) cooperates with 50 MET companies to set up a wide range of training activities, such as welding, CNC machining, project management, IT and languages based on national and regional skills needs. MASOC is organising ESF co-financed program which is aimed at improvement of qualification of persons employed in metalworking and mechanical engineering companies. The program was launched in December 2010 and will be running for three years. As the initiative is co-funded by the European Social Fund (ESF), it distributes training costs fairly among participating companies, depending on their size and capabilities through reimbursements and thus particular supports the development of competences in SMEs. 68 SHAPING TALENTS SURVEY CEEMET

70 Norway NO01 : Raising attention to the MET professions and improving the impact of training Association Network Line of business ; products and services Focus of initiative Federation of Norwegian Industries K-Tech Training provider, Employers Association Cooperation between industry and VET and national governments to raise the impact and image of MET sector professions Project Summary The Federation of Norwegian Industries (Norsk Industri) works actively to achieve increased attention to the vocational professions in Norway. Through Industriskolen, initiated by the Federation, courses and learning materials are provided covering several professions. The courses are organised to adapt the needs of the companies, and are at the same time officially approved training in Norway. Quite a few companies use Industriskolen. In Norway there are several examples of good cooperation between different social partners within vocational learning. In Kongsberg there is an industrial cluster which has established a mutual training establishment. This establishment is called K-tech, and covers the different skills needs of the region delivering competent and competitive manpower to the companies in the region. The scheme has shown to be very beneficial to the companies. The apprentices, who are educated in K-tech, become well trained in their different professions and skills. K-tech does not only raise the competence of the apprentices, but also of the 6,000 employees within the Industriskolen network, including other external customers. The training activity include a wide range of disciplines, but all have in common that they are so general, that companies can collaborate via the K-tech network. In 2011 there were approximately 3,500 persons who received such competence by K-tech. In addition competitions within vocational professions have shown to be a positive way of demonstrating the different professions and to promote MET sector skills to young talents. The Norwegian Minister of Education visited the last Norwegian championship as well as the recent WorldSkills arrangement in London. She was also an active promoter for the championships. Outcome A close interaction between business and schools is an obvious success factor for better vocational training. SHAPING TALENTS SURVEY CEEMET 69

71 Netherlands NL01 : Bringing together MET companies and trainers creating virtual networks Association Network Line of business ; products and services Focus of initiative FEDA (The Federation of Drive & Automation Sector Organization) 200 companies including Rexroth (Bosh Group), Siemens, FESTO, ROVC Training provider, Association Exchange of best practice, e-learning, blended learning Project Summary The Federation of Drive & Automation Sector Organization (FEDA) introduced a new program in 2012 based on a research project it underwent in to identify the skills needs of its network of 200 member companies in the Netherlands. The overall objective of the initiative was to drive the development and innovativeness of companies in the Netherlands. As employees are a decisive factor in companies, the continuous increase of the commitment, adaptability and development of employees is crucial for whole Industry. The Masterclass Project : The FEDAcademie facilitates, in a Joint venture with her member companies, the access to lifelong learning. It supports companies to develop technical knowledge and competencies of its workforce. One of the key objectives of the initiative is to connect companies and trainers via virtual networks. Virtual tools, such as e-learning (via website, newsletters and e-tutors (communication over the internet), provides flexible supplements to traditional classroom learning, improving the organization and communication of training initiatives. The approach further provides flexibility in the organization as training can take place at the premises of the trainers, the company or other inspiring environments. Finally a key feature of the e-learning initiative is that it makes it easy to connect experts, trainers and companies, combining theory with practice. This creates additional value, creating demand driven training, depending on the company s real skills needs as well as adding expertise as well as exchanging good practice experience from the results of the research project. Strong cooperation with leading industry partners, including Rexroth (Bosch Group), Siemens, Festo and ROVC and the setting up of four theme days/ year, further provides a platform for the exchange of knowledge and good practice between various industry stakeholders in the technology industry sector and provides a tool for managers to pre-consult each other to evaluate and develop the training program. Outcome The outcome of the initiative are short, flexible, modular and up to date technical training courses, using a blended learning concept combining presentations, case assignments and other materials complemented by a number of relevant templates and tools and providing expertise in the four key areas, mechanical engineering, electrical and electronics, process management and industrial automation. 70 SHAPING TALENTS SURVEY CEEMET

72 Portugal Overview of the Metallurgical and electromechanical industry in Portugal The metallurgical and electromechanical industry in Portugal represents 7% of the gross added value and employment, including 24,827 companies, 227,282 employees with an overall turnover of 25,257 billion euros (source ANEMM, 2008). According to a survey carried out by the national employers association of the Portuguese metallurgical and electromechanical industry (ANEMM) in 2012, the five main training needs identified by companies are leadership and motivation training, reading and interpretation of technical drawings, welding and processes, team management and structural metal work. PT01 : Retraining the workforce to meet the requirements of a new production department Company name INCOMPOL, Indústria de Componentes, SA Personnel 178 Line of business ; products & services Metallic components (mainly stamped parts, serial lathing and components assembly/welding) Cooperate with training centre and employment Focus of initiative services, train new employees and develop existing employees Project Summary The aim of the initiative was to create a new production department to take advantage of new market opportunities. INCOMPOL, Indústria de Componentes, SA became aware of new potential markets, and took a proactive approach to define and design specific training initiatives, meeting their new skills demands. According to the analysis of training needs, applied in the company, the management realised that the existing training providers on the training market were sufficient to fulfil their requirements, although some specific adaption were required. The company chose a Locksmith approach, including training in welding, piping and boiling as the existing skills and competences of the staff were not enough to fulfil the requirements of the new department. The project took two different approaches that have been developed in parallel. One objective was dedicated to the recruitment of new staff, as a way of responding to the new market requests without perturbing the existing work organization and the second objective was to update and upgrade the skills and competences of the existing workforce to meet the needs of the new department. a) Initial training (locksmith approach) : For these initial training the company decided to recruit unemployed people with the support of a local employment centre to supply the right candidates. CENFIM, a training centre, provided further support to recruit and select the right trainers and to be a training partner. On this project the company decides to reconvert an old building in a training area, once again with the technical advice from CENFIM. The locksmith training was used an official curriculum, that provided a double certification for all the trainees, i.e. academic certification and professional certification. The training (about hours) happened during approximately 2 years (35 hours per week, 11 months per year). As this was about initial training for unemployed people, it took place as a fulltime course. SHAPING TALENTS SURVEY CEEMET 71

73 b) Updating and Upgrading Skills and Competences of the existing workforce The company in cooperation with CENFIM tailored a program including 50 courses, each one with an average of 15 hours. The training provided a transversal approach based on a two year plan, including a technical focus for the production area as well as including human resource management, quality, health and safety and ICT training. The training took place twice a week, with a maximum of 2 or 3 hours per day provided by external trainers (CENFIM) and sometimes by internal staff. Most of the training was introduced in mixed timetables in the end of the working day, i.e. 1 hour during production time, and 1 hour after production time. For instance, if the timetable ends at 5 p.m., training session start at 4 p.m. to 6 p.m. All the training session occur inside the company just because they have appropriate facilities. The initiative has been co-financed by the European Social Fund (ESF). Outcome Please see Pt01-03 Findings and Conclusion. PT02 : Improving business processes Company name Personnel 90 Line of business ; products & services Focus of initiative FABRISCAPE, Fábrica de Escapes para Automóveis, Lda Exhaust systems component producer (such as precat pipes, down tubes, centre and rear sections, tail pipes, and other related product) Improve business processes Project summary FABRISCAPE produces exhaust systems components such as pre-cat pipes, down tubes, centre and rear sections, tail pipes, and other related products. The manufacturing involves cutting, bending and welding procedures, supported mainly on tooling developed and produced by Micromolde (company part of the Fabriscape group). This position allows the company to very quickly acquire the necessary means to produce new development products. Almost 100% of the components used are manufactured indoors. This option, despite being very demanding from the production management point of view, allows a great deal of flexibility and independence. Every task, from raw material buying and storing to the production planning and deliveries, is recorded and organised by a custom made software system. The example is about a company that wants to build up its processes to be certified on ISO 9001 Quality and Management. 72 SHAPING TALENTS SURVEY CEEMET

74 As usual, one of the main focuses of this process was about Human Resources and Training, and CENFIM intervention was requested to coach the company on the field of analysis of training needs. Most of the employees of the company belong to the welding production area. In this particular case it was vital to obtain the certification on the specific subjects, e.g. MIG-MAG, etc. Furthermore it was also necessary to develop a training plan tailored to the other transversal sectors in the company, namely : marketing, sales, management, ITC and safety & health. In this case the training was provided inside the company due to appropriate facilities to run training sessions. Moreover the welding training was developed using the welding machines from the company, so in order to avoid interruptions in production activities it was decided and agreed between employees and employer that training should be done on evening courses. So all the training, from production area as well as from clerk area was developed after work. The project involved about 15 training courses, with an average of 30 hours and 10 trainees each one. Outcome Please see Pt01-03 Findings and Conclusion. PT03 : Strengthening technical and organisational capabilities Company name Personnel 41 Line of business ; products & services Focus of initiative LEIRIMETAL Manufacture of machinery for building materials, ceramics and glass Update and upgrade skills and competences Project Summary LEIRIMETAL project intends to provide conditions for professional development of its human resources aimed at strengthening its technical and organisational capabilities. It was also a transversal project that includes the following subjects : Mechatronics Risk analise CA D ITC networks maintenance Pneumatic and hydraulic Industrial automation Pneumatic SHAPING TALENTS SURVEY CEEMET 73

75 Welding Safety & Health and Machinery Directive Part of the training was provided inside the company due to appropriate facilities to run training sessions and a part needed to be provided in an external training centre. The project involved about 23 training courses, with an average of 25 hours and 10 trainees each one. Some of the session had small groups, (about 4/5 due to the specificity of the subjects). When the training was provided inside the company, most of the training occurred in mix timetables in the end of the working session, i.e. 1 hour on production time, and 1 hour after production time. For instance, if the timetable ends at 5 p.m., training session start at 4 p.m. till 6 p.m. When the training occur outside, (in the Training Centre), mostly of the training was after work time. Outcome Please see Pt01-03 Findings and Conclusion. Pt01-03 Findings and Conclusion of Pt (CENFIM Training Initiatives) : Key outcomes of the Initiatives : The following initiatives were selected as a sample of well succeeding projects that should be disseminated in order to encourage other employer to apply a similar process. Because it was about tailored training there was a chance to have an integrated approach on it following the PDCA cycle (plan do check act). According to our experience, as a training center, the projects based on an analysis of training needs tend to have a higher success rate than individual and not integrated initiatives. Analysis of training needs should be done not only at the company level, but mainly at individual level. So in our opinion Training Centers, like CENFIM, should be used as partners in the process, just because they can provide companies with a Return on Investment (ROI) of comparable initiatives to the company s training needs, as training is otherwise almost always considered as a cost to businesses. As training could be expensive, CENFIM may further support companies to find out continuous ways to finance training initiatives, or to reduce training costs via income taxes. Motivation of participants : The Portuguese law obliges companies (no exceptions) to provide 35 hours of training per year per employee. Nevertheless we frequently find 2 kinds of participants, a) The volunteer ones, that understand and get great profit trough the training session, and b) the other that always arise barriers to join the training session. Most of the projects are previously announced to the employees and in most of the situation is based on a common platform of agreement. In most cases, when training occurs inside the company, there are two session a week lasting 2 hours/ each. This can be extended to 3 sessions a week lasting 3 hours if they include after work sessions. However if the training occurs outside the company s premises, it is set up for 3 hours per day, 5 days a week, normally after work (i.e. evening courses). 74 SHAPING TALENTS SURVEY CEEMET

76 As we realize on these 3 samples there were 3 different strategies, namely ; a) Training during the production time (usually 2 hours per session ; b) Mix timetables, in the end of the working day, i.e. 1 hour on production time, and 1 hour after production time. For instance, if the timetable ends at 5 p.m., training session start at 4 p.m. till 6 p.m., and c) 2/3 hours per session after work, twice a week. d) The availability of European Social Fund (ESF) co-funding was a determining factor whether training could be provided on the job (with funding) or had to take place in external training centres Evaluation of the results : The projects developed with CENFIM support has an evaluation, based on the 4 phases Kirkpatrick model, namely : i. reaction of trainees - what they thought and felt about the training ii. learning - the resulting increase in knowledge or capability iii. behaviour - extent of behaviour and capability improvement and implementation/application iv. results - the effects on the business or environment resulting from the trainee s performance The evaluation of level i) and level ii) occurred during and on the end of the training period, and level iii) and iv) occurred only 6 months later in order to obtain the real impact and ROI of the provided training. According to our records, the average evaluation was about 3.5/4 in a 5 scale. So we consider that those projects can be considered as effective, moreover, all the mentioned clients are still working with the same training supplier. SHAPING TALENTS SURVEY CEEMET 75

77 Slovenia SI01 : Develop a multi-skilled workforce Company name - Personnel Focus of initiative SME Competitiveness, knowledge transfer with subsidiaries, e-learning Project Summary Case A examines a SME, which is part of an international conglomerate. The company experienced a strong decline in orders, forcing it to re-evaluate its strategy, preparing for tough times and low capacity usage of its operators. The company used this challenge as an opportunity to anticipate unrealised training needs. Some of the skills and competence needs the company addressed with the approach were to develop a multiskilled workforce able to operate in multiple functions and tasks, having in mind public incentives and rigid labour markets and the implementation of new technologies. In terms of implementation the company consulted itself via the exchange of knowledge and experience within their internal expert networks based on sister companies abroad to ensure the quality of the planned initiative with all its technicalities (including when, where and what results are to be expected). This provided the company of an estimated return of investment (ROI) and allowed them to optimise the training initiative. Knowledge channels were created to ensure the quality and effectiveness of the initiative. The training was then initiated using a diversity of training methods, including workshops, interactive webinars and dynamic websites (e-learning). Outcome The Results greatly exceeded the company s expectations, not only in measurable outputs but also in soft components (mindset, work-oriented satisfaction, number of new ideas, ). 76 SHAPING TALENTS SURVEY CEEMET

78 SI02 : Reintegrating retired employees to transfer accumulated knowledge to the next generation Company name - Personnel SME Focus of initiative Young pensioners as trainers for young talents Project Summary Company B, an export oriented SME, faced tough challenges due to the decline in export demand and rapid technology changes based on tough global competition. This imposed strong needs for a multi-skilled workforce, which is flexible to adapt to continuous changes in the firms external environment. As most of the young workers lacked the basic skills and experience in understanding on how to use technologies and how to handle new machinery, the company decided to lure back its young pensioners. The goal was to transfer accumulated knowledge trans-generational. After initial awkwardness, relationships formed naturally, with the older employees being accepted as mentors. Besides informal and non-formal learning, the company also provided formal learning schooling the workforce for 2 hours per day for 1 month, after which intensity diminished. During this period additional planned activities were taking place (e.g. workshops in situ, with working tools, processes ). Outcome The outcome of the initiative was declared as very satisfactory by the company s director. SHAPING TALENTS SURVEY CEEMET 77

79 Sweden SE01 : An innovative collaboration for a competitive industry between industry, University and a non profit agency Network Personnel Line of business ; products & services Focus of initiative Nimo-Verken AB, University of Skövde, IDC West Sweden AB, manufacturing industry 80 (Nimo-Verken AB) Product developer and manufacturer of laundry room equipment University-industry collaboration, cooperation benefits, lifelong learning, education in production development and process improvement, Lean Learning Academy Project Summary In a knowledge based economy, manufacturing industry has to continuously improve their operations, processes and develop their employees in order to remain competitive in the market. In this context, the collaboration between industry and universities becomes of vital importance. Universities and industry have traditionally maintained fairly informal or formed lose ways of cooperation when it comes to education. This article presents a fruitful cooperation which has been established between the University of Skövde, the Industrial Development Center in the region, IDC West Sweden AB, and the manufacturing industry. The case describes the development, lessons learned and the outcome of more than 3 years experience of close collaboration between the different stakeholders. It presents a methodology, used by the consortium to help manufacturing industries to improve their competiveness using a well defined process including : a company analysis, applied education and long-term coaching. A special focus is put on a long-term commitment by all partners. This alliance has performed more than 140 company analysis, conducted applied education for more than 2500 employees from more than 120 companies and performed coaching of more than 80 companies on site. The trend is that these figures will increase over time. The established collaboration has been strengthened over this period of time by a number of shared research projects. One of these projects involves an evaluation of the impact that this presented consortium has had on the region s industry. Lean Learning Academies is another project that has been funded by the European Union within the Lifelong Learning Program, with the aim to increase the competitiveness of European companies and enhance the employability of students. Introduction : The University of Skövde, the Industrial Development Center in the region, IDC West Sweden AB, and the manufacturing industry of the region of Skaraborg have worked together over the past years following a standardised methodology of collaboration with the main objective of increasing the competitiveness of the industry. This case describes this successful collaboration between the three stakeholders in the region of Skaraborg in Sweden, and the results and lessons learned from this collaboration. 78 SHAPING TALENTS SURVEY CEEMET

80 Background : Sweden as other industrialised nations is highly dependent on an efficient and competitive production industry in order to maintain its welfare and economic growth. The manufacturing industry accounts for about 50% of the Swedish export and employs around 350,000 people. If we include consulting and service companies that work directly with manufacturing companies, the number of employees reaches a total of 700,000. To appreciate the historical and current importance of manufacturing industry, just have in mind that an exceptional amount of global manufacturing companies, in relation to its population, have their roots in Sweden. And up to this days their main operations, including production, is still within Sweden 15. The global competition in the manufacturing industry is increasing. Many nations and regions, also the European Union (EU), are currently making large investments on industrial and academic research to attain competitive advantages. Their contributions to new technologies and new methods with the ambition of increasing flexibility, sustainability and innovation of industrial production poses a challenge to Sweden s competitiveness - a challenge that has to be met quickly and forcefully. To overcome this, academic, industrial and institutional efforts must be directed towards the same goal. This co-operation should be based on a common long-term strategy where industry, academia, and funding agencies agree on important priorities. Several important challenges for the future s Swedish production scene have been identified 16. Some of the identified areas are the need of a sustainable production, the level of flexible production, the role and interaction of humans in production systems, the use of digital & knowledge-based technologies for decision support and analysis, and the importance of parallel development of innovative products and production systems. The on-going globalisation poses, therefore, a huge challenge which brings both possibilities and threats. Today s technology and methods are not sufficient in order to gain advantage of the possibilities and/or solve the problems created by these challenges. Long term co-operation between industry, academia and research institutes is necessary to increase the competitive edge of manufacturing companies. On the other hand, the collaboration between industry and universities is not a new phenomenon. The universities in Sweden have had the task of implementing Triple Helix, cooperation between the academia, the industry and the government, for some decades now. But to be truthful the universities have mostly focused on informing the surrounding society about their activities, instead of building up cooperation that includes all the partners. Therefore, the establishment of a more formal and effective collaboration is still a goal to pursue, and taking into account the challenges, it is something that has become more important over these past years for all the parties involved. Additionally, according to Garrick et al. 17 the industry has recognised the importance of lifelong learning due to the increasing need for innovation and the fierce competition on the global markets. But, nevertheless, industry wants to see a more direct correlation between their investment in learning and improvements on individual and corporate performance. Classroom based training, although still useful, is no longer enough to deal with the new demands for learning at work. New times and challenges require in this case, new ways for continuous learning. In a knowledge-based economy, learning becomes extremely important in influencing the fate of individuals, firms and national economies. Human capabilities for learning new skills and applying them are keys to successfully absorb and adapt to the profitable use of new technologies. Properly-trained researchers and technicians are essential for producing and applying both scientific and technological knowledge. In a knowledge-based economy, the academic world must balance not only its roles of knowledge production (research) and knowledge transmission (education and training) but also its third function, consisting in transferring knowledge to economic and social actors, especially enterprises, whose role is to exploit such knowledge. Economies are putting an increased emphasis on developing linkages between the academic world and the private sector in order to speed knowledge 15 Teknikföretagen (2009) 16 Teknikföretagen (2009) 17 Garrick, J. et al. (2004) SHAPING TALENTS SURVEY CEEMET 79

81 diffusion. In the case of higher education, university/industry collaborations bring with it opportunities to increase the relevance of the university s educational mission and to stimulate new research directions 18. There are, as seen, many reasons for forming industry-university collaboration 19. These reasons include fulfilling an organization s education mission, accessing education and training resources, gaining competitive advantages, addressing business growth, achieving cost savings, enhancing organizational reputation, increasing revenue, accessing research and tool resources, and providing a staffing source. Nevertheless, the focus in the academic world is placed on generation of knowledge, with all its rights, but this emphasis leads many times to that the academic world struggles with building up and sustain a fruitful relations with the Small and Medium size Enterprises (SME). Big companies usually have the needed infrastructure to be in contact with the universities and establish different ways of cooperation, but neither the SMEs nor the universities have well developed infrastructures to define and maintain fruitful relations between each other. This leads to a general view among SMEs that the university is a resource that is far away from their needs and/or reach. This highlights the importance of finding an infrastructure and/or agency that promotes the needed bounding of interaction and communication between the academia and SMEs. According to Abramo, et al. 20 the university industry collaboration brings together individuals from two distant worlds : public research institutes and private industry are characterized by highly divergent missions, organizational structures and management systems. The term ivory tower 21 gives an image of the limited permeability of universities to the external world, including to demands for new knowledge that might arise in industry. Several cases of successful university-industry collaboration are presented in the literature. Interesting is that in a number of cases an intermediate agency is operating with the aim of closing the gap between the academia and industries. This agency has a good understanding of the nearby SMEs needs and has the resources to maintain a fruitful link to the academia. This is the case of The Lean Advancement Initiative (LAI) at Massachusetts Institute of Technology (MIT) which enables enterprises to effectively, efficiently, and reliably create value in complex and rapidly changing environments 22. Another example of an agency working for the regional industry is the North East Productivity Alliance (NEPA) in the United Kingdom 23 which aims to improve the productivity of regional companies to make them globally competitive. COLLABORATION BETWEEN INDUSTRY AND UNIVERSITY Collaboration background : The region of Skaraborg is located in the south west of Sweden and around people lives in the region. Approximately people work in the engineering industry in Sweden, companies are in manufacturing and in services. Most employees, , in the manufacturing companies can be found in Västra Götaland where the region of Skaraborg is included 24.This paper describes the collaboration between three stakeholders with the aim of increasing the competitiveness of the manufacturing industry in the region of Skaraborg in Sweden. The three stakeholders are : Skaraborg s manufacturing industry : In the region of Skaraborg, the manufacturing industry is divided in different sectors mainly companies in the wood, automotive, engineering, electronics, automation and food. Companies are predominantly SMEs and there are around 850, meanwhile the big companies are just few. Small and medium sized companies are important components in the Swedish industry structure. Swedish 18 Organisation for Economic Co-Operation and Development OECD (1996) 19 Mead, N. et al. (1999) 20 Abramo, G. et al. (2009) 21 Zuckerman, S.Z. (1971) 22 LAI (2011) 23 Herron, C. & Hicks, C. (2008) 24 Teknikföretagen (2011) 80 SHAPING TALENTS SURVEY CEEMET

82 manufacturing industry normally functions in long value chains, where the larger companies work together with many small suppliers 25. Industrial Development Center in the region, IDC West Sweden AB : The aim of IDC is to stimulate knowledge transfer and collaboration between companies in Skaraborg, leading to increased competitiveness. It s a nonprofit agency financed by public funding (European Union and local Swedish Governmental organisms) and is owned by more than 100 companies. University of Skövde : The University offers education to students and industry professionals and enhances the research related to the industry s needs. The University of Skövde is a public university located in south-west part of Sweden in the region of Skaraborg. The main education and research areas are oriented to engineering and technology, computer science and technology, nursing and natural science. Other subjects taught at the university are behavioural science, economics and social science and media and humanities. Starting from the foundation of IDC, the University of Skövde has had an active part in the development and operations of IDC. This close collaboration started with the ambition of securing higher competence to the IDC companies. When the global economic crisis hit Sweden in 2008 the scope changed. Sweden has always been dependent on its exporting industry and therefore highly affected by the economic situation of its main international markets. This dependence has increased over the last decades. This means that any global financial crisis combined with a severe international economic downturn has a substantial impact on the Swedish economy 26. In the context of the 2008 crisis, the University of Skövde and IDC decided to work on a closer relationship. The aim was to maintain and develop a global, profitable, competitive and wealthy manufacturing industry in the region and reaching this aim would contribute to retaining competence and future job places. Considering the important number of SMEs in the region, IDC is a key stakeholder for these companies in order to help them access to the university s services and resources. Collaboration process : The collaboration process follows a pre-set number of steps. Despite a fairly standardized process that it is used with all the companies that have enrolled in the IDC program, then work done within these steps is very diverse depending on the unique needs of the enrolled company. This process puts its focus on one step, elaborating short-term measurable actions, but at the same time taking into account what the company has defined in their strategic plans for the long term status and its actual situation. If the company doesn t have a long term plan or vision, the consortium helps them in the development of such plan. Figure 1 : The focus point on the process. 25 Teknikföretagen (2009) 26 Svante, O. (2009) SHAPING TALENTS SURVEY CEEMET 81

83 All activities are aiming at giving companies the prerequisites, the means, and thereby the capability for taking the next step to a higher degree of competiveness. This is done through identifying the company s present status and in a structured manner increasing the overall performance of the company to make the continuous steps. The overall simplified process is the following : Step 1 Presentation and commitment : IDC contacts the company or vice versa and after a formal presentation of the process, a long term commitment is required from the company. Usually this company is a member of the IDC group but also non-members can contact IDC to start the process. Step 2 Analysis : A company analysis is made in three blocks : measurements, revisions and recommendations. All teaching staff at the university s manufacturing engineering group takes regularly part in this process step, as contributing resources and observes, IDC is always taking the lead. A field study is made analysing the production system and the efficiency in the different organisational processes. Step 3.1 Forming improvement program : Before continuing with the process, the company needs to sign a collaboration agreement, since from this step and forward the process phases the most time consuming stage. It is therefore important to ensure the commitment of the company to the process. For an IDC non-member company, this is when becoming a member is suggested. At this step, the company needs to define their goals and schedule their improvement program, including prioritization of required activities. Some major issues are identifying the main process, the needed organization for running the process and the demanded level of competence. A vital issue is to define the target for overall improvements, including the score card. Furthermore, an educational plan covering the company s need is made. Step 3.2 Running improvement program : During this last step the improvement program is run. Taylor made education can be a part of the improvement program, which demands the University of Skövde to take an active part in this part of the process. The education program is modular based, industry oriented and adapted to the student type e.g. managers, team leaders and operators. Beyond tailoring the content, the form and geographic arena is, within limitations, adapted to the companies need. The participants discuss their company s problems during the classes and the teacher helps them to use their newly received theoretical background, contributing with his own industrial experience, to illustrate feasible solutions. This step that is usually extended over one year period includes on site coaching and revisions. These activities give the possibility to see whether the program is on track and/or to identify additional activities needed. The revisions control four chronological steps : The operations system is in place, the operations system works, the trend is correct and finally, the overall target will be reached. After finalizing the process, the communication is maintained between the three stakeholders and continues for a considerable time. IDC offers continuous coaching services and the University of Skövde offers industry oriented education, participation on company convenient research projects (new products, new services or improvements in their processes) and the possibility for the company to offer thesis projects for engineering students within the industry. Fig.2 below presents the different steps, stakeholder participation and common lead time for the different steps. 82 SHAPING TALENTS SURVEY CEEMET

84 Figure 2 : Collaboration process steps, stakeholder participation and expected lead times. Case study : Nimo-Verken AB Nimo-Verken AB is a company that has followed the earlier described process. Their participation started in late 2009 and is still on-going. The company is one of the main product developer and manufacturer of laundry room equipment of Sweden. Some examples of their products are drying cabinets, iron cabinets, cabinets and zincs. The company has been leading the restructuring of this branch and have therefore been growing organically as well as via procurement of additional brands. Nimo- Verken AB is a SME, with 85 employees. Here follows a brief description of the activities that have been conducted together with Nimo- Verken AB : First analysis in early 2010, which included the active participation of both IDC and the University of Skövde. The improvement planning program phase ended with a kick-off in December The improvement program is currently running, and revision three to be completed late in October Nimo-Verken s past and history represent an interesting background to illustrate the advantages with the currently proposed process and collaboration. The company has been involved in a number of initiatives with the aim of reaching a more efficient way of working and a process oriented quality system. The company has attained quality certificates such as ISO 9000, but the gained certificate has mainly indicated that there is a system, not that they work according to that system. There were a discrepancy between the system and the operations. The different embarked initiatives were never successful. They did not prevail and didn t really changed anything ; there where viewed as merely new projects with an ending date, not as a continuous improvement process with the aim of changing the behaviour or their way of working. This meant, naturally, that the company was quite difficult to convince of the future benefits and outcome of this proposed collaboration. In order to overcome this scepticism was the board of directors invited to take part of the process details and early results. The purpose was to create SHAPING TALENTS SURVEY CEEMET 83

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