Alcoa case study
40 PEOPLE & STRATEGY
Case Study
Smart Manufacturing and Smarter Talent Acquisition
and Development: Extending Alcoa’s Talent Pipeline into
Communities
By Scott Hudson
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VOLUME 37/ISSUE 3 — 2014 41
tions for automotive, aerospace, and building and construction.
In 1952, Alcoa established Alcoa Foundation with an endowed fund as the company’s global nonprofit arm. Since its inception, the Foundation has become one of the largest corporate-endowed foundations in the U.S., with assets of approximately $470 million. The work of the Foundation is enhanced by Alcoa’s employee volunteers who contribute their talents and time in 24 countries to make a difference in communities. In 2013, the Foundation contributed more than $22 mil- lion to nonprofit organizations throughout the world, building innovative partnerships to improve the environment and to educate tomorrow’s leaders for careers in manufac- turing and engineering.
In 2008, Alcoa created the talent acquisition center of excellence to coordinate special- ized services for the three business groups:
campus and experienced hire recruitment; capability development and performance workforce planning; and leadership and high-potential development. In 2010, the Foundation aligned its educational portfolio with Alcoa’s talent acquisition and develop- ment priorities by adding guidelines and metrics for workforce development and sci- ence, technology, engineering, and math (STEM) initiatives. Alcoa Foundation’s STEM and workforce development interests are translated into key themes and metrics (see Exhibit 1).
More alignment was achieved in 2013 when the Foundation and Alcoa’s human resources, environment, health, and safety groups came under the same organizational umbrella. The restructuring coordinates Alcoa and the Foundation’s workforce development prac- tices and programming, especially those tied to the transportation and aerospace end markets.
M anufacturing companies are using the principles of Smart Manufacturing to pursue inno-
vative advancements with products and manufacturing processes (Sujeet & Davis, 2010). Smart Manufacturing is a proactive and disciplined approach to implementing advanced process manufacturing technolo- gy. Part of the Smart Manufacturing approach focuses on the identification and development of high-quality talent required to drive innovation with products and processes.
“Alcoa’s transformation into a lightweight multi-material innovation powerhouse is in part powered by a skilled workforce of top engineering and manufacturing talent,” said Alcoa Foundation President Esra Ozer. “To sustain the transformation, Alcoa and Alcoa Foundation are pursuing innovative practices to extend Alcoa’s talent pipeline into com- munities, through public–private partner- ships, and with leadership and employee engagement.”
Alcoa and Alcoa Foundation are aligned to innovate with the third “P”—people, by driv- ing shared value practices to talent acquisi- tion and development within communities and Alcoa.
In 2013, Alcoa celebrated its 125th anniver- sary as a global leader in lightweight metals technology, engineering, and manufactur- ing, with operations in 30 countries. The company innovates multi-material solutions to advance automotive and aerospace trans- portation, enables high-performance build- ings, and improves industrial and consumer electronics products. Alcoa’s three principal business groups are global primary products to make aluminum; global rolled products for air and ground transportation and pack- aging; and engineered products and solu-
Manufacturers are facing a talent acquisition crisis. Global companies like Alcoa are leading
initiatives to increase engineering and manufacturing talent in their communities. Employer-based
initiatives provide opportunities to tap the expertise and resources of corporations, educational
institutions, training providers, and governmental agencies. Together, these stakeholders can help
streamline and improve education and training and revitalize interest in a field where competition
for engineering and manufacturing talent is only going to grow.
EXHIBIT 1. STRATEGIC EDUCATIONAL THEMES AND METRICS EXHIBIT 1: Strategic Educational Themes and Metrics
# of individuals who acquire certification in a manufacturing field. # of individuals who gain employment or improve their employment status in a manufacturing field. # of individuals who acquire entry-level or advanced engineering credentials. # of individuals who gain employment or improve their employment status in an engineering field. # of individuals, organizations or communities impacted.
# of individuals who acquire certification in a manufacturing field. # of individuals who gain employment or improve their employment status in a manufacturing field. # of individuals who acquire entry-level or advanced engineering credentials. # of individuals who gain employment or improve their employment status in an engineering field. # of individuals, organizations or communities impacted.
Workforce Development – Provide education and training opportunities which lead to employment in engineering and manufacturing.
# of youth who gain transferable STEM skills or continue their education in pursuit of a career in STEM. # of teachers trained or assisted. # of schools impacted. # of individuals, organizations or communities impacted.
# of youth who gain transferable STEM skills or continue their education in pursuit of a career in STEM. # of teachers trained or assisted. # of schools impacted. # of individuals, organizations or communities impacted.
STEM – Support innovative education and training programs and teaching curriculums in Science, Technology, Engineering and Math to support careers in these disciplines.
Invest in educational and training endeavors where Alcoa, as a lightweight metals technology, engineering and manufacturing company, can offer our expertise and make
a difference, specifically in the areas of:
2
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42 PEOPLE & STRATEGY
Context for Shared Value
The Manufacturing Institute and Deloitte estimate that “as many as 600,000 well- paying manufacturing jobs are going unfilled” because companies cannot find the right tal- ent for entry to experienced levels (Deloitte and the Manufacturing Institute, 2011). Across its global businesses, Alcoa faces tal- ent acquisition challenges unique to manu- facturing due to:
• Growing disconnect between the skills needed for advanced manufacturing careers and how educational institutions and training providers are preparing students
• Poor public image, with manufacturing seen as dirty and dangerous with limited career advancement potential
• Heightened competition for engineering and manufacturing talent as more baby boomers retire over the next 10 years.
So, to what extent can a corporation’s talent acquisition challenges and priorities be addressed through its philanthropic contri- butions? The rule of thumb is that a compa- n y ’s c o r p o r a t e c o n t r i b u t i o n s c a n n o t ultimately benefit the company. For example, a company’s foundation cannot award a grant to a community college if the company is requiring the school to select top students to be hired by the company. However, a com- pany’s foundation can provide funding to the school for workforce development programs to prepare students for manufacturing careers in general without any stipulations for hiring.
To address the talent acquisition challenges and priorities, Alcoa and the Foundation have adopted the concept of “shared value” (Porter and Kramer, 2011) to build partner- ships that extend the talent pipeline into com- munities while addressing larger training and education and employment gaps for engi- neering and manufacturing careers. The STEM and workforce development opportu- nities can be broadly grouped into three types of community benefits that bridge Alcoa’s talent acquisition priorities with the Founda-
tion’s STEM and workforce development goals:
• Promote high-paying STEM capable careers
• Extend access to next–generation talent pipelines
• Engage untapped pools of talent
Alcoa’s talent acquisition priorities and the Foundation’s primary educational themes used for grant making are aligned with opportunities to extend the talent pipeline into the community (see Exhibit 2).
The community benefits are aligned with Alcoa’s and Alcoa Foundation’s STEM and workforce development interests.
Engage Untapped Pools of Talent: Women in Engineering
Alcoa invested $13 million to expand its wheel manufacturing plant in Hungary to meet growing demand for its lightweight,
durable, low-maintenance aluminum truck wheels. The expansion enabled Alcoa to increase employment at the facility and pro- duce twice as many Dura-Bright EVO surface-treated wheels in Europe by early 2015, compared with current production levels.
In Hungary, Alcoa and other companies face stiff competition for engineers. To increase the supply of talent in engineering and techni- cal careers, Alcoa undertook two initiatives:
• POWEngR. Alcoa initiated this program to achieve greater gender diversity in all occu- pations and to improve business results through diversity. The initiative kicked off with a workshop for interns and female employees and resulted in the launch of the Ambassador Program, which engages 11th and 12th grade students in discussions about technical and nontechnical careers.
• Association of American University Women (AAUW). As a complement to POWEngR, Alcoa Foundation’s partner- ship with AAUW in Hungary led to a men- toring and summer STEM program for girls that was created with local Alcoa employees, college and university faculty at
EXHIBIT 2. BRIDGING THE SHARED VALUE DIVIDE EXHIBIT 2: Bridging the Shared Value Divide
3
Community Extend Access to Next Generation Talent Pipeline
(K-18)
Community Promote High-Paying
STEM Capable Careers
Community Engage Untapped
Pools of Talent
Alcoa Talent Acquisition Priorities •Prepare & connect with potential recruits
•Increase competitiveness & talent pipeline
Alcoa Foundation Educational Themes •STEM capable careers
•Workforce Development - engineering & manufacturing talent
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Budapest University of Technology and Economics, secondary school educators, local community organizations, and AAUW partner organizations. The girls are learning about engineering and manufac- turing careers, and have support on their journeys to prepare for these careers.
The AAUW initiative was replicated in Barber- ton, Ohio, another Alcoa wheel and transpor- tation products location, and builds on Alcoa’s customized operator training program with Stark State College. Barberton schools are part of a tri-city partnership where teachers and guidance counselors develop workshops and conferences for middle– and high–school girls and their caregivers to learn about engineering and manufacturing careers requiring two- and four-year degrees.
By the end of 2015, 800 girls (grades 6 through 9) and their parents in Ohio and Hungary will complete a day-long STEM enrichment pro- grams and receive the mentoring and guidance to continue their interest and engagement in STEM subjects and careers. Plus, networks of teachers, guidance counselors, and caregivers will have the capability to design and imple- ment local programs.
Promote High-Paying STEM Capable Careers: Youth
Around the world, 13.1 percent of youth (ages 18–24) are unemployed because they lack workforce experience, industry-required training and education, and direction for longer-term career preparation (International Labor Organization, 2014). Through the FLEX-Internship Program managed by the Institute for International Education with a Foundation grant, 500 youth (ages 18–24 years) are matched with 10 nonprofit organi- zations in eight countries: Australia, Brazil, Canada, France, Russia, Spain, the United Kingdom, and the United States. The nonprofit organizations offer youth programs with job readiness training, career counseling, and internships with manufacturing companies.
Prior to the program, the youth lack informa- tion about high-paying careers in manufac- turing and the education available to prepare
for these careers. Through their training and experience with internships, youth become knowledgeable peer-to-peer advocates about high-paying careers in manufacturing.
One requirement for the FLEX-Internship program is that youth are placed in intern- ships with small- and medium-sized manu- facturers (SMM) that offer entry-level openings yet have difficulty filling these posi- tions. Although SMMs represent 85 percent of all manufacturing companies, they often lack the talent acquisition and development expertise and resources to attract and retain manufacturing talent.
For larger manufacturers, many SMMs make up their supply chains. Broader community use of programs such as FLEX can decrease competition among manufacturers for a lim- ited talent pool by creating greater awareness about and access to education, training, and employment opportunities.
To date, 128 SMMs have mentored and trained 200 interns who either are enrolled or have completed their programs. The mid- term evaluation will highlight how FLEX- Internships are tailored to youth employment in the10 different labor markets and measure how the internships have translated into youth employment and continued career preparation.
Extend Access to Next Generation Talent Pipeline: Advanced Manufacturing
By the end of 2014, Alcoa in Davenport, Iowa, will have completed a $300 million expansion that will add 200 employees by mid-2015 to supply aluminum to the auto- motive industry, which is rapidly increasing its aluminum content in vehicles. Aluminum
body sheet content in North American vehi- cles will quadruple by 2015 and increase tenfold by 2025 (compared to 2012 levels). The trend translates into a short- and long- term need to build a qualified talent pipeline with Alcoa and SMMs.
For its skilled workforce development, Alcoa created a tailored apprenticeship program with the Blong Technology Center to train electrical and mechanical talent, and provided on-the-job training and classes with Alcoa technicians. Timed to the growth in the busi- ness, the location used Alcoa Foundation funds to help rebrand manufacturing and to e x t e n d t h e t a l e n t p i p e l i n e i n t o t h e community:
• Junior Achievement (JA) of the Heartland. The JA Advanced Manufacturing and Agriculture Careers Expo initiative reach- es 1,600 students, 250 of whom are pledg- ing to pursue advanced manufacturing training at Muscatine Community— another college where Alcoa recruits skilled technicians.
• The East Tennessee Historical Society. The Museum of East Tennessee History updated its exhibit about the history and future of manufacturing, “100 Years of Manufacturing in East Tennessee: And a Look Ahead at the Next 100 Years.” The exhibit raises awareness about the evolu- tion of manufacturing, with an emphasis on STEM curriculum to promote career options in manufacturing to students and teachers.
FLIP IT: Alcoa Leadership and Staff Practices
The Alcoa and Foundation alignment is also being leveraged to develop Alcoa staff’s com-
Alcoa and Alcoa Foundation are part of a larger corporate movement whereby manufacturers champion employer-led initiatives to increase engineering and manufacturing talent in communities.
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munity relations skills, to engage Alcoa’s expertise and leadership within community groups, to inform the design of initiatives with Alcoa’s workforce research, and to cul- tivate public–private partnerships support- ing the reemergence of manufacturing The Foundation’s workforce development and employee engagement programs can be lev- eraged with Alcoa’s interests with staff development, thought leadership, work- force research, and public–private partner- ships (see Exhibit 3).
Public–Private Partnerships
In 2013 and 2014, Alcoa assumed leadership roles with two public–private partnerships championed by President Barack Obama: Advanced Manufacturing Partnership (AMP) 2.0 and the American Lightweight and Mod- ern Metals Innovation Institute (ALMMII).
AMP 2.0 (Alcoa, 2013)
In 2013, President Barack Obama tapped Klaus Kleinfeld, Alcoa’s chairman and CEO, to join the President’s Advanced Manufactur-
ing Partnership (AMP) Steering Committee 2.0, part of a continuing effort to maintain U.S. leadership in the emerging technologies that will create high-quality manufacturing jobs and enhance America’s global competi- tiveness. Within AMP 2.0, Alcoa, the Dow Chemical Company, and Siemens have formed a coalition to build regional appren- ticeship models and to develop a “playbook” for companies and community colleges to develop robust apprenticeship programs. Alcoa also is contributing to other groups working on certification and advanced man- ufacturing opportunities for U.S. veterans.
ALMMII (Alcoa, 2014)
In 2014, Alcoa became a founding member of ALMMII, the country’s first manufactur- ing institute focused solely on light metals. Alcoa’s experts at the Alcoa Technical Center (ATC) and ALMMII are focusing on develop- ing technologies to secure the future of key industries, such as transportation and aero- space. With the other 60 ALMII members, including Boeing, General Electric, Honda North America, and Lockheed Martin, Alcoa is establishing science, technology, and engi- neering curricula to educate the next genera-
tion of manufacturing operators and engineers; and streamline certification and training to enable up to 10,000 jobs.
Staff Development
For community investment and employee engagement, Alcoa Foundation has a four- phase, year-long process to secure partner- ships and initiatives and to organize employee events. Exhibit 4 (page 46) shows the Foun- dation’s community investment steps from planning to grant making to reporting and communicating partners’ progress and achievements with funded initiatives.
Within these activities there a number of opportunities for staff to develop their skills and to gain experience, which are formally laid out in employees’ Individual Develop- ment Plans. The Foundation’s activities are incorporated into the individual develop- ment plans to advance more proficient skills in project management, community relations, and communications.
• Community Investment Teams. Employees serve on location teams to create the com- munity investment plan, determine local
EXHIBIT 3. COMMUNITY TALENT PIPELINE WITH ALCOA LEADERSHIP AND STAFF
EXHIBIT 3: Community Talent Pipeline with Alcoa Leadership & Staff
STAFF DEVELOPMENT Alcoans develop leadership, project
management & communication skills
Example: Individual development plan around Alcoa Foundation programs & activities & skilled volunteering with nonprofit partners
WORKFORCE RESEARCH Alcoa locations’ talent acquisition and
development practices are identified, showcased, replicated
Example: 2013 survey of Alcoa talent acquisition and development practices for engineering & manufacturing talent
THOUGHT LEADERSHIP Alcoa leadership presentations and
articles with Alcoa Foundation partners
Examples: Alcoa panel presentation at Society of Women Engineers’ Annual Conference; and Brookings Institute & American Institute of Contemporary Studies - Skills & Industry: A New American Model
PUBLIC-PRIVATE PARTNERSHIPS Alcoa Foundation partners and linkages
with global & national initiatives
Examples: World Economic Forum; Advanced Manufacturing Partnership 2.0; American Lightweight and Modern Metals Innovation Institute
4
Alcoa Foundation •Global STEM & Workforce Development Programs •Local STEM & Workforce Development Programs •General Volunteering •Skill-based Volunteering
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46 PEOPLE & STRATEGY
References Sujeet, C. & Davis, J. (2010, August). “What is Smart manufacturing?”
Deloitte and the Manufacturing Institute (2011). “Boiling point? The skills gap in U.S. manufacturing”
Porter, M. & Kramer, M. (2011, January– February). “Creating shared value: How to reinvent capitalism—and unleash a wave of innovation and growth.” Harvard Business Review.
“Global Employment Trends 2014.” Interna- tional Labour Organization (January 2014).
“President Obama Taps Alcoa’s Kleinfeld to Help Advance US Manufacturing” (Alcoa, 2013)
“Alcoa Founding Member of the First Light- weight Metals Manufacturing Institute in the United States” (Alcoa, 2014)
Scott Hudson is a principal manager with Alcoa Foundation, one of the larg- est corporate foundations in the United States. He manages the global work- force development and STEM portfo- lio, strategically linked with Alcoa’s talent acquisition and development priorities, and oversees community investment in 22 countries. He can be reached at Scott.Hudson@alcoa.com.
partnerships and initiatives to be funded with an Alcoa Foundation grant, and orga- nize volunteering events.
• Employee Engagement Events. Employees select volunteer opportunities with com- munity-based partners that Alcoa location teams promote and monitor against targets established for different opportunities: “Action” for group volunteering, “Bravo” for individual volunteering, and events called Green Works and Month of Service. Some of these opportunities are in skilled volunteering where employees use their professional expertise to consult with part- ners or serve as board members who can offer specialized oversight and guidance.
• Classroom and Youth Group Presenta- tions. Employees talk with students, teach- ers, and parents about Alcoa and careers in manufacturing and engineering, as well as how to prepare for them. As a complement to K–12 presentations, the Foundation provides staff with instructional tools for teachers with autodidactic, hands-on activ- ities developed by Junior Achievement (7th through 10th grades, global) and the Acad- emy of Model Aeronautics (5th through 8th grades, global).
At Alcoa’s location in Mosjoen, Norway, employees are teaching high school students about lean manufacturing to increase pro- ductivity and effectiveness in work processes. In Massena, New York, the location collabo- rated with Clarkson University for high school students interested in engineering to “bust the myths” about manufacturing.
Next Steps Alcoa and Alcoa Foundation are part of a larger corporate movement whereby manu- facturers champion employer-led initiatives to increase engineering and manufacturing
talent in communities. At the community level, employer-based initiatives provide opportunities to tap the expertise and resources of corporations, educational insti- tutions, training providers, and governmental agencies. Together, these stakeholders can help streamline education and training to employment pathways, create greater aware- ness about career options, and inform the scope and design of government-funded training programs.
The recent passage of the Workforce Innova- tion and Opportunity Act also promotes employer-led initiatives and employer involvement to better inform educational and training programs that lead to employ- ment. Alcoa and the Foundation have a workforce research initiative focused on promising practices with community-based programs and internal talent acquisition and development initiatives. Promising practices most closely align Alcoa’s talent priorities for entry (high school to college graduate) and mid-level (five to 10 years of experience) talent with the Foundation’s workforce and STEM programs and employee engagement opportunities. The scope of the research covers
• The identification of high-impact promis- ing practices that can be replicated
• Scaling the practices to be even more stra- tegically aligned with Alcoa’s need for top engineering and manufacturing talent
Alcoa and other manufacturers involved with the Advanced Manufacturing Partnership also encourage the sharing and replication of employer-led initiatives that add to the body of knowledge of how companies and com- munities prepare the next generation of engi- neering and manufacturing talent. Together, we can rebuild manufacturing’s workforce in the United States and around the world.
EXHIBIT 4. ALCOA FOUNDATION’S COMMUNITY INVESTMENT ACTIVITIES
Planning Community Investments
November—February
Making Community Investments
March—July
Impact Measurement &
Reporting
Ongoing
Communicating Community Investments
Ongoing
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