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Toward a New Game Plan
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<br />Sixty-billion dollars annually. A comprehensive reorder-
<br />ing of priorities. American business has only 10 years to
<br />make that level of investment in education and training
<br />l if it hopes to remain globally competitive. [] That's the
<br />sobering conclusion of a new book by one of America's
<br />keenest observers of international business competition. Before
<br />you say, "Not my money!" and hide your checkbook, read the
<br />
<br />real-life examples in Hedrick Smith's
<br />Rethinking America: A New Game Plan
<br />]~om the American Innovators (Random
<br />ltouse, 1995).
<br /> Smith, a Pulitzer-prize winner and for-
<br />mcr New York Times correspon-
<br />dent, argues competlingly that dur-
<br />ing thc 1980s America educated its
<br />children the way GM mass-pro~
<br />duced its cars, but both lost their
<br />edge. Now, in an era when indus-
<br />try depends on skilled employees
<br />as never before, and yet most kids
<br />dou't go on to college, U.S. cmn-
<br />panics wilt have to do a better job
<br />developing their workforce.
<br /> S~nith's long-range concern is
<br />that in 10 years America will lmve
<br />nearly four-million fewer workers
<br />aged 25 to 39 than we have today.
<br />With fewer workers, every one will
<br />have to count--literally.
<br /> Smith points out that in highly
<br />industrialized Japan nearly every
<br />high sclnool student studies cal-
<br />culus. In the U.S., that figure is
<br />barely six percent. Japanese kids,
<br />with their longer school years,
<br />graduate from high school with
<br />tine equivalent of four more years
<br />of schooling than their American
<br />counterparts. According to Smith,
<br />Japanese youth and their German con-
<br />temporaries are much better prepared
<br />to step into industry with a marketable
<br />skill than nearly three-quarters of Amer-
<br />ican youth.
<br /> Setting aside schools and basic educa-
<br />tion for a moment, thc answer to why
<br />most U.S. workers will have a difficult
<br />time competing is not hard to find. In the
<br />
<br /> 1980s, says Smith, American industry
<br /> spent some $30 billion annually on edu-
<br /> cation and training, but two-thirds of that
<br /> was concentrated on college-educated
<br /> cmph~yces. Even then, ()ne percent of the
<br />
<br />Smith's long-range
<br />concern is that
<br />in 10 years America will
<br />have nearly four-million
<br />fewer workers aged
<br />25 to 39 than we have
<br />today. With fewer
<br />workers, every one will
<br />have to count literally.
<br />
<br />Hedrick Smith
<br />
<br /> firms accounted for 90 per-
<br /> cent of thc training spending.
<br /> As he did in his excellent
<br /> PBS television series, Chal-
<br /> lenge to Americzt, Smith enu-
<br /> merates in Inis new book the
<br /> ways American industry
<br /> needs to patiently build for
<br /> thc future--or, as he says,
<br /> "how singles beat home
<br /> FUllS."
<br /> When Smith spoke to Minnesota
<br />Technology, Inc.'s annual diuner forum
<br />last fall, he reminded us of the monu-
<br />mental global changes that have taken
<br />place in recent years--changes to which
<br />American industry must respond. "It's
<br />not size that counts, but flexibility," hc
<br />said. "It's m)t mass, but speed. It's not
<br />robots, it's people, h's not cost, it's qual-
<br />
<br />4 MINNESOTA TECHNOLOGY SUMMER 195;5
<br />
<br />ity. It's not the volume of output, but
<br />reliability. It's not individual perfor-
<br />mance, it's teamwork. It's not brilliant
<br />inventions, but a flawless svstcm of pro-
<br />ducing them."
<br /> He spoke of all the inventions Amer-
<br />ica has failed to capitalize on because
<br />somebody else "could produce them bet-
<br />ter.'' }te said, "It's not quick profits, but
<br />patient capital and building market share.
<br />It's not an imperial CEO, but participa-
<br />tion and power-sharing, delegating
<br />authority. It's not labor-management
<br />confrontation, it's labor-management
<br />cooperation, and.., cooperation between
<br />thc public ant{ private sector[si."
<br /> In contrast to the remarks he made at
<br />our forum, Smith says relatively little in
<br />Rethinki,~g America about that last cle-
<br />ment-public-private collaboration. But
<br />viewed from where 1 sit, programs Iike
<br />ours, working with industry, are filling
<br />a gap in the marketplace serving small
<br />and medium-sized manufacturers.
<br />Results--verified by our customers---
<br />show that Minnesota Technology, Inc.,
<br />staff statcwide, cooperating with public
<br />and private partners, have effected well
<br />over $100-miltion ~vorth of positive eco-
<br />nomic impact for Minnesota during thc
<br />past three years.
<br /> As Smitln notes throughout his book,
<br />there arc already home-grown examples
<br />of innovation and high performance
<br />within American schools, businesses, and
<br />government. These we can and must
<br />buildon. Buta new mindset is also
<br />needed. We're not,just competing
<br />against foreign companies, but against
<br />foreign governments and societies, too.
<br />Our challenge, as a country, is to devel-
<br />op a competitive game plan and--indi-
<br />vidually and in our factories, statehous-
<br />es, and schools--to advance that agenda
<br />here at home.
<br /> If you're interested in a free copy of
<br />the highlights of IF ledrick Smith's remarks
<br />to Minnesota industry, call me at (612)
<br />338-7722.
<br /> --Jacques Koppel
<br /> President, Minnesota Technology, Inc.
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<br />PHOTO(;RAI~H BY BRYAN '¢,ENDLAND
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