North Central Indiana WIRED Network

Purdue University
Quarterly Narrative Progress Report Q1, 2009

Section I: General Grant Information

A. Grant information

Grantee Name: Purdue University via the Indiana Department of Workforce

Development
Name of Project: North Central Indiana (NCI) WIRED Network
Agreement #: WIRED-5-59
CFDA#: 17.261
Quarterly Reporting Period: January 1 – March 31, 2009
Date:
Contact Persons: Scott Hutcheson
Purdue University
hutcheson@purdue.edu
(765) 494-4277

Ed Morrison
Policy Advisor
efmorris@purdue.edu
(216) 650-7267

Peggy Hosea
Purdue University
phosea@purdue.edu
(765) 236-0955

B. Summary of General Grant Activities

As our region, our state and our country face financial uncertainty and
dramatic increases in unemployment, the NCI WIRED region finds itself
with an unmistakable advantage that stemmed from the WIRED grant.
Our ability to react quickly to change, to pull together key civic leaders to
address current issues and to develop action plans has been significantly
improved by the activities of the past three years.

The dense network of committed individuals and organizations created in the region has
positioned our efforts for rapid turn-around and increased efficiency. Whether reviewing
programs such as the Inventrek Skunk Works (a concept in September 2008 and an
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actuality in Q1 2009) or the formation of a team committed to re-engage and re-direct
the workforce, the NCI region has exhibited a swiftness to take action that many other
communities lack.

Understanding the need for actionable workforce data and information, NCI had already
undertaken a complete study prior to the worst of the economic downturn. That report,
now nearing completion, will have real-time relevant data that has been constructed to
help guidance counselors and educators better comprehend the needs of employers
and how to modify curricula to meet those needs. Communities will also find this report
invaluable to assess the state of the workforce in their area, identify gaps and create
action plans.

Throughout this report, you‟ll find examples of the payoff now being seen from the
WIRED efforts. Current programs continue to yield measured outcomes. And with
diligent evaluation of the investment portfolio and reallocation of our financial
commitments, programs that have been in queue are in final stages of development.
New programs stretch the reach of our boundaries and will provide unique learning
opportunities for our workforce.

As the WIRED banner gradually descends throughout 2009, the Regional Leadership
Institute is gaining recognition and is positioned to continue the role of an active Civic
group that will address key issues.

C. Status Update on Strategic Partnership Activities

Partnership updates follow: Business Innovation

Energy Systems Network:

The Energy Systems Network (ESN) is a partnership of private firms,

research institutions and public agencies focused on bringing new
energy technologies to market, leveraging Indiana‟s strong
manufacturing sector, R&D capabilities, and heritage of engineering
advanced energy systems. (Read more about Governor Daniel‟s announcement here.)

Paul Mitchell, former policy advisor to Governor Daniels (and previous WIRED lead at
the state level), now serves as President and CEO of the ESN.

To maintain and strengthen the connections between the WIRED region (an early
partner) and the state‟s Energy movement, IESN hosted a fireside chat in West
Lafayette on March 11th. Prospective entrepreneurs and businesses within the
emerging alternative energy and electric and hybrid electric vehicle markets were
invited to participate in this skill-building event.
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Those in attendance learned about successfully launching and running “energy-related”
businesses in the current highly volatile market. John Waters, President/CEO of Bright
Automotive, appointed by Governor Daniels as Indiana‟s Energy Entrepreneur in
Residence, discussed key challenges in the electric and hybrid electric vehicle arena;
Mike Hudson, CEO of I Power Energy Systems, addressed distributed power as well as
the ability to leverage distributed sources of bio-gas for power production; Scott Prince
with EnerTech – Heartland Energy Fund provided information about the dramatically
evolving ability to tap capital markets for energy firms.

With concentrated work needed in this emerging field, activities of the strong leadership
at ESN will prove beneficial to the NCI region in multiple ways.

Industrial Energy Efficiency:

As more employees are trained in the skills of maximizing

Energy Efficiency, the significant ROI of this training is
noted and NCI companies are spreading the word. During
the 1st quarter, two additional companies have committed
their employees to the training program bringing the total #
of companies to 26 with 317 worker-days of time invested.
The return on that investment now exceeds $2M per year in terms of the energy savings
resulting from the participants‟ new skills.

A new module has been created for individuals who do not deal with the technical
aspects of energy-intensive equipment such as boilers and compressors, but who are
involved in financial decisions affecting them. The new module is entitled „Incorporating
Energy Efficiency into Financial Decision Making‟ and incorporates several activities to
engage attendees. Early feedback was very positive and additional sessions are
planned.

Success of the program is being touted in various media such as INside Edge, BizVoice
and GreenBiz.com. Read the GreenBiz article here.

Green Worker Certification:

The first delivery of the Green Generalist (G101) training was conducted at
Drug Plastics, Inc. in Oxford, Indiana, with fourteen managers and supervisors
participating. The Company was sufficiently impressed to prepare a written
endorsement of the training and has expressed their intent to send
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employees to the Specialist training.

To seek continued input about the material that has been developed and evaluate the
applicability, the Indiana Offices of Energy Development and Environmental
Management were invited to attend two public forums held at Purdue Research Park.
Employees from companies participating in other TAP programs have also participated
and provided feedback.

Six modules of the Specialist training are now complete. The newest module „Material
Management and Solid Waste‟ features a “dumpster-diving” waste sorting activity that
has recently been popularized by local zero-Landfill company Subaru of Indiana
Automotive (SIA).

SME certificate assessment is on schedule. To date they have interviewed numerous

individuals who are actively engaged in greening their company, and have completed
their validation of the Body of Knowledge assembled by the Purdue team. A survey will
be developed to send to sustainable business experts in Q2 which will measure the
importance of each part of the BoK to being an effective „green‟ worker. This
information will be used to apportion content of the final certificate exam.

The term „Green Worker‟ is becoming a common term, but a true definition has been
lacking. The SME certification will go a long way in filling that gap. Purdue TAP‟s
efforts in this area are becoming widely known and interest has been expressed by
several organizations including WIRED regions in Kansas, Michigan, South Carolina
and Vermont. Discussions have also been held with the third-party administrator of
the Green Supplier Network for NIST MEP.

Healthy Workforce:

To verify and expand the Hispanic version of the Healthy Workforce

training, employees for one company have been recruited to
participate and provide feedback. In addition, the possibility of working
with an auto manufacturer in Kokomo is being pursued. Fee-for-
service offerings are being created to sustain the program after WIRED investments are
complete.

To date, the Healthy Workforce program has nine active manufacturing partners. The
value of the program is verified by the 100% implementation rate after the assessments
and recommendations were made. As another testament to the value, all of the
companies implemented the training using some portion of company time, in some
cases 100%. Changes that were made to the working environment will increase the
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skills and productivity of workers not only by reducing down time but by actually
increasing efficiency. Human resources issues and costs are also reduced.

Partnership updates follow: Developing 21st Century Talent

New Tech High

Prior to the transformation of Zebra New Tech High in Rochester, IN,

the school had faced not only less-than-desirable test scores but also
experienced declining attendance and a steady issue of disciplinary
problems.

Now when asked to name the single change that has had the most impact on the
school, Superintendent Dr. Deb Howe is quick to respond „student engagement’. In
fact, she states that „student engagement has exploded‟ creating a positive culture for
learning and impacting all three areas noted above. Students are more accountable,
attendance rates have increased significantly as have test scores.

Grade Ten students‟ Math scores have jumped from 69% to 73.5% and Language Arts
from 69.1% to 74.8%. The percentage of students passing both Math and Language
Arts has risen from 61.2 % to 67.3%.

The engagement of students has also resulted in a reduction in the number of

suspensions and expulsions by more than 50%. All of these facts point to the validity of
Zebra New Tech High‟s belief that R X R X R = Student Success. The „R‟s‟ in the
equation represent Relationship, Relevance and Rigor. Strong student-teacher
Relationships with Relevance of work to the topic and Rigor (depth of the topic) is the
way to increase student achievement. Based on the continued success seen in
Rochester, the equation works.

To date, over 300 principals and administrators have toured NTH and ten additional
tours will be scheduled before year end. Additionally NTH Rochester has been selected
as a training site for New Tech Schools in Indiana and nationally. Recognizing the need
for workforce retraining, plans are underway to create a Community Learning Center
that will serve adults as well as high school students. The Center will have vocational,
dual college credit, and credentialing courses offered.

Partnership updates follow: Encouraging Entrepreneurship

One of the four strategic initiatives adopted by NCI WIRED was to develop a culture of
entrepreneurship throughout our region. Recognizing the opportunity to train
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entrepreneurship skills and create curriculum that provides a lasting impact on the
learners was the goal of multiple programs.

Doubling ‘E’ at IUK

Addressing the need to incorporate much stronger business formation elements into
various college classes, Indiana University Kokomo embedded entrepreneurship into
four majors and now has 144 students who have received the enhanced education, well
on their way to literally doubling the original number.

Classroom Business Enterprise

Impacting the future workforce is the Classroom Business Enterprise

training that has been completed by 50 teachers who are
incorporating what they have learned into their own classrooms.

Business plans, profit, loss, human resources, and many more

economic terms are becoming familiar topics as teachers help their learners experience
being entrepreneurs first-hand. Based on the success of the fifty teachers already
trained, an additional 50 teachers will be trained in 2009. Those 100 teachers are
reaching large numbers of learners to help them „make a job‟ as they enter the
workforce.

Entrepreneurship Academy at Kokomo Area Career Center

One of several programs designed to reach individuals entering the

workforce is the curriculum created at the Kokomo Area Career Center.
Learners now have the opportunity to understand what it means to be an
entrepreneur, the rewards and risks of going into business for yourself and
the background, characteristics, and skills of successful entrepreneurs.

This curriculum is being shared with other Career Centers in the region.
To date approximately 100 learners have gone through this Academy.

Entrepreneurship Talent Development Network

Continuing to gain momentum with each passing month, the sixteen Entrepreneurs
engaged in this peer network program are developing skills to increase their knowledge
of business management. WIRED partner SBDC formed the group, known as Echelon,
and works with each business owner to evaluate their current level of knowledge. The
curriculum then creates a stepped effect as they collectively climb towards more
successful business practices.

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Two members giving Echelon excellent reviews are Andy Baker and
Mark Koors, owners of AndyMark, Inc. The focus of AndyMark is to
design, invent, and sell components for robotics and mobility
applications and the two have steadily built their business using their
combined 45 years of engineering experience. Despite forming their
company in 2004, they have valued the opportunity to participate in the
Echelon sessions and comment that the program has been extremely
helpful.

Skunk Works

Transformation of the traditional workforce system is underway in the United States and
that is certainly true in Kokomo, IN. A new and innovative strategy to further develop
skills and job opportunities for dislocated engineers from the changing landscape of the
auto industry is positioning these displaced workers for success in a different
environment.

The „Skunk Works‟ is on-track to providing alternative means of employment through a

multi- pronged approach. During a „triage‟ process, WIRED partner Inventrek
Technology Park works directly with engineers and engages them in a course of action
that capitalizes on their experience and assesses their future learning and employment
needs. The approaches include:

1. Development of job opportunities in new businesses formed through IP

developed by the engineers, or in some cases Delphi Electronics, by
providing extensive training, process and facilities to encourage
entrepreneurship.

2. Linking entrepreneurs with business development specialists and Angel

Investors. .

3. Use of a process developed by WIRED funding, Innovations Link, to seek out

opportunities developed by Purdue and made available in the Purdue Office
of Technology Commercialization.

4. Registering the dislocated workers in a database allowing them to be

connected with firms nation-wide and internationally that need engineering
services but do not keep engineers on their payroll.

Intensive efforts have been required to identify and connect with the dislocated workers
due to confidentiality issues for Delphi and their outplacement service. In addition to
traditional methods of reaching out, new technology such as social networking websites
such as FaceBook has played a big part in this process.

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Innovations in Top Line Growth

Companies with employees who are forward thinking and continually seeking new
products and services to offer their customers are much better positioned to handle the
challenges of sustained business viability.

Helping organizations to develop their workforces‟ ability to strategically focus on such

new ideas is the domain of Purdue Technical Assistance Program‟s partnership with the
Eureka Ranch Winning Ways program. In the NCI region, facilitator Rich Meyer has
successfully led ten employee teams through the process with more than 645 growth
ideas created. Four specific companies have reported on progress to date. In addition
to the new skills developed, 8 new jobs have been created and 38 current jobs have
been retained. Significant cost savings and projected sales have also been recorded.

The NIST/MEP network and Eureka! Ranch have asked Rich to join a select group of
Eureka trainers to preview and provide feedback on new Eureka! Ranch products.
More information about the impact of this program can be found in the Successes
portion of this report.

Partnership updates follow: Civic Leadership

Hoosier Heartland Regional Leadership Institute

Building on the listening sessions that were held in every county and the book reading
group discussion groups that followed, the Regional Leadership Institute had a very
active quarter as they traveled to three locations that have innovative regional initiatives.

Best practice trips were taken to Grand Rapids, Michigan, to meet with leaders of the
West Michigan Strategic Alliance, Greensboro, North Carolina, home of the Piedmont
Triad Partnership and Covington, Kentucky, where Vision 2015 is housed.

Each trip was well planned, allowing an inside look at how other areas engage in
regional and leadership development. Meeting with elected officials, business and
industry partners and economic development officials, the teams returned to Indiana
energized and ready to take action.

The membership of the Institute has continued to grow with a total of 68 individuals are
now taking part. The group activities have helped to cement their emerging partnerships
and anticipation is building for the May 7th & 8th event that will bring them all together
again.

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The spring event will lead the participants through a visioning process where they will
determine the mission, vision and goals of the Institute prioritize projects and ready
themselves for action.

See the visit to the Piedmont Triad here, the Michigan trip here and the Kentucky trip
here.

To learn about the book the group read which outlines the challenges facing the
Midwest (Caught in the Middle by Richard Longworth), visit this link.

Multiple Partner Activities:

WIRED has played a key role in convening the right audience for the right message. As
an example, when the CEAP (Community Economic Adjustment Program, a unit of the
EDA University Center) program was announced and the University of Michigan needed
to hold focus meetings, they turned to WIRED. We were able to form a meaningful
interaction with the team that could benefit most from CEAP program offerings.

Another example is the multi-organizational efforts in Howard County to address the

need to keep dislocated workers engaged. By determining their training needs and
related issues, the community will find new and different ways to reach out to the
workers and their families. Spurred by a state-wide effort from PCRD (Scott Hutcheson
and Ed Morrison), the group formed and has quickly become an action-oriented asset to
the area. Overnight, WIRED was able to get an informative website up and running,
maintained with the most current information. The Chancellor of Indiana University at
Kokomo and our Workforce Development Partner will co-chair this endeavor with
WIRED assistance.

Kokomo has recently gone through a difficult but necessary reorganization of the
multiple entities that had been involved in economic development activities. The
formation of the Greater Kokomo Economic Development Alliance is explained here.
Ed Morrison and WIRED staff have been instrumental in facilitating this challenging
task.

D. Status Update on Leveraged Resources

(Attachment: NCI WIRED Leveraged Resources 3.31.09)

NCI Partners have reported gains in leverage dollars this quarter for a cumulative total
over $16,000,000. Through a review of the leverage funds as reported by WIRED sub-
contractors with Indiana Department of Labor, it is noted that only a portion of those
funds will be reported on the matched funds document to the state though all reported
leverage supports WIRED goals and is identified on the enclosure.
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Section II: Regional Metrics
(Attachment: NCI WIRED Summary Metrics 3.31.09)

The number of individuals impacted by WIRED has continued to climb, far exceeding
the goals in each of the target measurements. Over 15,000 individuals have
participated in the training efforts, 7,600 have completed training with 1,198 of those
resulting in a degree or certificate. Over 3,500 workers have been placed to date.

Complete details of these measurements and other accomplishments that have been
tracked can be reviewed on the NCI WIRED Summary Metrics for the quarter ended
March 31s, 2009.

Section III: Challenges to Progress

Without a doubt the most significant challenge to emerge this quarter is the severity of
the economic downturn. Three years ago, when we began our WIRED effort, we would
not have predicted this economic situation, especially in Indiana which was faring better
than most other Midwestern states. The good news, as articulated in this report, is that
the civic habits we‟ve cultivated during the WIRED effort has helped North Central
Indiana react much more quickly than we otherwise would have. Although no amount of
regional collaboration can counteract the impact of a global economic crisis, we have
been more resilient and agile in our response.

Another challenge that emerged this quarter is the reduction in staff supporting the
WIRED effort. Not only did WIRED‟s Project Administrator complete his assignment, but
other key supporting partners ended their contractual obligations to WIRED. There was
some concern that these partners would disengage but that has proved to be an
unfounded concern. The network of workforce, economic, and higher education
professionals who have helped lead the effort, continues to lead the effort even now
when some are not contractually obligated to do so. This is another testament to
WIRED‟s commitment to sustainability.

Section IV: Promising Innovation Processes and Success Stories

(Attachment: NCI WIRED Success Story PowerPoint 3.31.09)

A. Promising Approaches, Processes, and Lessons Learned

By building capacity within existing organizations, the WIRED grant has been
administered by a remarkably lean team of individuals. This has proven to be a very
effective means of engaging experienced professionals and ensuring a rich diversity of
thought. Note that in Q1 of 2009, Mark Smith, Project Administrator, completed his
assignment. Project management responsibilities have been assumed by existing staff.
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Efficient processes put in place for tracking the operational issues of the WIRED grant
have permitted this reduction in personnel.

In response to the lay-offs of auto workers, Purdue recently announced a new program
at the Kokomo campus of the College of Technology that would allow students to
receive a 4 year degree in 2 years by making the program their full time job. Again,
students would be able to continue receiving unemployment compensation and the
classes would be paid for with TAA grant funds. The concept was quickly developed
and classes are scheduled to begin in August with 25 students.

Wind Energy has made a positive impact on many areas in the NCI
region with announcements and progress reports seen daily in local
news. A recent groundbreaking in White County was reported here and
the first phase of the Fowler Ridge Wind Farm in Benton County is fully
operational. Read More or Watch as Inside INdiana Business took an in depth look at
the state's emerging wind power industry shortly after construction on the Fowler Ridge
Wind Farm started last year.

With the advent of more wind turbines in the area, skilled workers will be need for
operation, maintenance and repair in addition to manufacturing capacity. Job fairs and
forums are being held in the Midwest that will be attended by many from the NCI region
to determine how best to align our educational resources and workforce planning.
Examples of two pending activities are below.

The WINDPOWER 2009 Job Fair, May 5 - May 7, connects top wind
energy companies with job seekers of all experience levels and also
includes the Careers in Wind Seminar, with presentations by leading
industry professionals about the varied career opportunities in wind
energy. Job seekers are encouraged to sign up and post their resumes
at www.careersinwind.com.

B. Sharing Success Stories

A Company ready to grow:

A company that stamps metal pieces for furniture and construction is not joining other
similar companies in singing the blues about economic troubles. The B. Walter &
Company of Wabash, Indiana, undertook the Eureka! Winning Ways program in early
2008 with one of their product ideas resulting in a new product to sell to furniture
makers. The company has now hired an engineering firm, completed a full design of
the product, and is beginning the process of selling the product.

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While many of B Walter‟s competitors are losing business with no prospects of
immediate improvement, Art Jasen, President of the company, is singing a different
tune. They‟ve got a new product in the pipeline that is different than anything they‟ve
done before. He expressed that it was nice to be in a position to be proactive when
most companies are cutting back on growth projects.

Sustaining WIRED programs:

Throughout this report there have been references to the way our program partners
plan to sustain their training efforts after WIRED funding is no longer available. One
outstanding example is the Entrepreneurship Academy program which has received
much acclaim for their work in teaching entrepreneurship principles to an unlikely
audience: students who are very strong in the STEM disciplines. The Academy was
launched in 2007 and was supported almost entirely by WIRED. In the second year,
WIRED‟s funding commitment remained the same but additional support allowed the
program to expand. The 2009 Academy will continue the expansion but will be funded
entirely through corporate sponsorships. This sustainability plan was built into the
original funding request and reiterated through the many reviews. More about the
Academy can be found here.

Creating Career Opportunities in Energy:

For the past two years, White, Carroll, Clinton and Tippecanoe counties have
successfully facilitated the WIRED Clean Energy Forum. During that time, local
economic development organization representatives assisted in the development of
Biotown, USA; planned and delivered Clean Energy Forums in two counties; visited the
National Renewable Energy Lab in Denver, Colorado, and facilitated monthly meetings
of Forum members.

Building on the accomplishments of the Forum, a proposal was just approved that will
support the creation of new jobs and career opportunities in Clean Energy Industries by
driving regional energy initiatives. The newly created position of Regional Director of
Renewable Energy Initiatives will increase adoption of existing energy programs and
promote innovation of next-generation solutions for regional economic growth including
skill analysis and training needs.

Attachments:

NCI WIRED Investment Portfolio and Projections 3.31.09

NCI WIRED Leveraged Resources 3.31.09
NCI WIRED Outcomes Chart 3.31.09
NCI WIRED Success Story PowerPoint 3.31.09
NCI WIRED Summary Metrics 3.31.09
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