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Workforce DevelopmentBenchmark Project

State of MinnesotaMinnesota State Colleges and Universities

Prepared By

Kathy YeagerContract Training Edge

[email protected]

www.ctedge.netMay, 2009

mailto:[email protected]

Table of Contents

Executive Summary............................................................................................................1

Major Survey Findings....................................................................................................1

Introduction.........................................................................................................................3

Purpose.............................................................................................................................3

Methodology.....................................................................................................................3

Survey Participants..........................................................................................................4

Demographics......................................................................................................................5

Sales/Cycles/Processes.........................................................................................................7

Revenue..............................................................................................................................11.................................................................................................................................................

Pricing/Products................................................................................................................14

Curriculum.........................................................................................................................16

Customer Profiles..............................................................................................................18

Trainers/Consultants/Faculty...........................................................................................19

Marketing...........................................................................................................................21

Measure Impact of Program and Services .....................................................................22

Evaluations.........................................................................................................................22

Contract Training for Credit ..........................................................................................24

Future Projections ............................................................................................................26

Minnesota Best Practices .................................................................................................31

Potential Growth Areas ...................................................................................................32

Final Thoughts ..................................................................................................................33

Executive Summary

The State of Minnesota and the Minnesota State Colleges and Universities, also called MnSCU, determined they wanted to conduct a Workforce Development Benchmark Study with the Colleges and Universities in the state to see how they compared to the national Workforce Development Benchmark Study conducted by Kathy Yeager in 2006. It was decided that a similar survey would be distributed to the Colleges and Universities, and Kathy Yeager would do an analysis and comparison of the findings from Minnesota against the national study.

The survey was distributed to 32 Minnesota Colleges and Universities via Survey Monkey in March, 2009. Of the 32 Colleges and Universities, 20 completed the survey for a 62.5% response rate.

Major Survey Findings

Minnesota Institutions are surrounded by manufacturing, service and government agencies. Colleges nationally are surrounded by manufacturing, service and healthcare.

Contract Training reps make 3-5 sales calls per week. The same is true nationally.

Proactive sales calls range from less than 10% to 50-74%. Nationally, proactive sales calls are conducted 50-74% of the time by 32% of respondents.

Sales calls target the HR Director, 85%; Training Director, 74%; and CEO, 65%. Nationally the targets were Training Director, 89%; HR Director, 68%; and CEO, 63%.

Minnesota targets the same vertical markets as national organizations—Healthcare, Manufacturing and Government

State Colleges and Universities take 3-4 weeks to close a sale at 35%. Nationally, it took 5-8 weeks to close a sale at 42%. Minnesota has a shorter sales cycle.

Sales staff sells both public seminars and contract training (95%). Nationally, sales staff sell only contract training (52%).

In Minnesota, 80% of sales staff complete the whole process from approach to delivery of training. Nationally, 52% of colleges do not complete the whole process, and use some form of fulfillment assistance.

Contract Training is 100% the largest revenue generator both in Minnesota and nationally.

The average contract sales amount is $1,000-$3,999 in Minnesota. Nationally, the average contract amount is $4,000-$7,999. Minnesota closes smaller contracts than the national average.

The net revenue goal for this area was $100,000 or more both for Minnesota and nationally.

Minnesota responded that contract training is 25-49% of the total revenue generated (35%). Nationally, the number is 50-75% of the total revenue generated (42%). The national contract training revenue generation is higher than in Minnesota.

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The percent of revenue generated by public enrollment classes was the same for Minnesota and the national survey—0-24%.

The top products of the Center include Leadership, Microsoft, Certificate Programs, and Lean. Nationally, the products were Leadership, Microsoft, Customer Service, IT, and Lean.

In Minnesota, 75% of institutions reported that both the Center and external consultants owned the curriculum. Nationally, 72.2% of institutions owned the curriculum.

The top Soft Skills in Minnesota are Change, Conflict and Time Management. Nationally, the list is Change, Conflict, Presentation Skills, Coaching, and Performance Reviews.

The top Computer Classes in Minnesota are Excel, Word and PowerPoint. Nationally, the top classes are Excel, Word and Access.

Referrals is the #1 way to obtain leads nationwide and in Minnesota. Payment for Soft Skills Trainers is $50-$74 across the board Payment for Computer Instructors is $25-$49 (35%) in Minnesota and $50-$75

(52.6%) nationwide. Minnesota pays less for computer instruction than the national average

The target audience for marketing materials is the Training Director and HR Director.

Marketing materials are not tracked according to Minnesota and national findings. Minnesota responded 55% no and 45% yes to measuring ROI. Nationally,

colleges responded 68% yes to measuring ROI. The Level 1 Evaluation is administered at the end of the training everywhere. Both Minnesota and the national survey indicated pre-assessments were given

before the training. The same was true with post-assessments after the training. Credit Contract Training is sold in Minnesota and nationwide. The $300,000 or

more amount is also universal. Top credit classes for contract training include Businesses Courses and Computer

Information Systems in Minnesota and nationwide. If resources were not an issue, Minnesota Colleges and Universities would create

more marketing staff and materials and improve processes. The national response was to hire more sales people and obtain better leads.

Faculty contracts and state policies and procedures keep the Colleges and Universities from running it like a business. Nationally, the response was internal systems like registration, inflexibility of community colleges, certain processes, working in an academic atmosphere, finding qualified instructors, top level support and college structure.

Companies utilize the Colleges and Universities for quality of instructors (95%), quality of programs (95%) and cost (75%). Nationally, the answers were cost (89.5%), quality of instructors (89.5%) and quality of programs (84.2%).

Gross sales projections for this fiscal year, and in three years for Minnesota was $500,000 - $1million. Nationally, the amounts were $1-$2 million.

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Introduction

PurposeThe State of Minnesota and the Minnesota State Colleges and Universities, also called MnSCU, have an ongoing commitment to improving its programs and services. As a result, MnSCU decided to conduct a benchmarking survey with the Colleges and Universities of Minnesota and compare the results to the Workforce Development Benchmark Study conducted by Kathy Yeager at Johnson County Community College in 2006. The purpose of the survey was to gain insight into other colleges and how they conduct their workforce development open enrollment and contract training programs. The survey was designed to gather information concerning all aspects of the sales department, types of products offered, financial goals and achievements of the department, expectations of the college, industries served, payment of instructors, marketing techniques, evaluations, and future success goals. The main goal was to uncover best practices in Minnesota and compare to colleges nationwide.

MethodologyIn March, 2009, the benchmark survey was sent to 32 Colleges and Universities in Minnesota via Survey Monkey. Out of the 32 institutions surveyed, 20 completed the information for a return rate of 62.5%.

From the Survey Monkey results, tables were built and the information was transmitted to Kathy Yeager for analysis and comparison to the national study conducted in 2006. The results are contained in this document, and were presented at the MnCCECT Conference in St. Paul, Minnesota on May 6 & 7, 2009.

Major findings are summarized on the following pages along with the tables generated from the survey data. The list of participating Colleges and Universities in Minnesota is provided and the Minnesota Best Practices is found at the end of the report.

Please direct any questions or comments about this Benchmark Study to:

Kathy YeagerPresidentContract Training [email protected]

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Minnesota Colleges and Universities Responding to the Survey

Alexandria Technical CollegeCentral Lakes CollegeCentury College, Continuing Education & Customized TrainingInver Hills Community CollegeLake Superior CollegeMesabi Range Community & Technical CollegeMinneapolis Community and Technical CollegeMN State College-SE TechnicalMN State Community & Technical CollegeMN State University MoorheadNorth Hennepin Community CollegeNorthland Community & Technical CollegePine Technical CollegeRainy River Community CollegeRidgewater CollegeSouth Central CollegeSt Cloud Technical CollegeSt. Cloud State UniversityVermilion Community CollegeWinona State University

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What is your institution's annual FYE?

Half of the responding Colleges (10 out of 20) in Minnesota had an annual FYE of 1,000-4,999.

Response Number PercentUnder 1,000 4 20%1,000 - 4,999 10 50%5,000 - 9,999 4 20%10,000 - 14,999 1 5%15,000+ 1 5%Total 20 100%

What is your institution's annual unduplicated non-credit enrollment per semester?

Of the 20 institutions who responded to the survey, 45% had under 1,000 unduplicated non-credit enrollments, and 35% had 1,000-4,999. By comparison, the national study showed 47.4% with 10,000 or more enrollments per semester.

Response Number PercentUnder 1,000 9 45%1,000 - 4,999 7 35%5,000 - 9,999 3 15%10,000 - 14,999 0 0%15,000+ 1 5%Total 20 100%

How many FTE's are in your institution's corporate training center?Note: This question was not asked on the national survey

18 responded. Average = 19 FTE, Median = 8 FTE, Range from 0-150

How many part-time employees are in your institution's corporate training center?Note: This question was not asked on the national survey

19 responded. Average = 10 , Median = 2, Range from 0-75

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Does your institution operate, within a single county or multi-county?

Responding Minnesota Colleges operated in multi-county locations 85% of the time. By comparison to the national study, 80% of small institutions operated in multi-counties, while medium and large institutions operated in single counties with 60% and 66.7% respectively.

Response Number PercentSingle county 3 15%Multi-county 17 85%Total 20 100%

Is your institution located in an urban, suburban or rural setting?

In Minnesota, institutions were located in rural settings 65% of the time. By comparison to the national study, smaller institutions were located in urban and rural settings, and medium and large institutions were split between urban and suburban.

Response Number PercentUrban 3 15%Suburban 4 20%Rural 13 65%Total 20 100%

How would you describe the local economy surrounding your institution?

In 2009, Minnesota Colleges described the surrounding economy as both flat and depressed. In 2006, the national study uncovered small institutions indicating robust and flat, medium institutions listed developing and large institutions surrounded by robust economy.

Response Number PercentFlat 9 45%Depressed 9 45%Robust 0 0%Developing 2 10%Total 20 100%

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Sales/Cycle/Process

What is the predominant industry surrounding your institution?

Pick your top 2 or 3

Institutions were predominantly surrounded by manufacturing (60%), Service (50%) and Government (40%). By comparison, the national study had small institutionssurrounded by manufacturing, medium with service, and large with healthcare, banking and manufacturing.

Response Number PercentManufacturing 12 60%Hi-tech 4 20%Service 10 50%Government 8 40%Other (please specify) Health care/social assistance 6 30% Mining 1 5% Food processing 1 5% Small business, mixed 1 5%

How many full-time Contract Training reps are on your sales staff?Note: This question was not asked on the national survey

20 responded. Average = 4 , Median = 3, Range from .75 – 10

How many part-time employees are Contract Training reps?Note: This questions was not asked on the national survey

19 responded. Average = 1 , Median = 0, Range from 0 – 4

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How many sales calls are conducted per week by a Contract Training rep?

Of institutions responding, 40% conducted 3-5 sales calls per week and 35% conducted 1-2 sales calls. By comparison, the national survey showed 36.8% conducted 3-5 sales calls per week followed by 26.3% making 6-8 calls.

Response Number PercentZero 0 0%1-2 7 35%3-5 8 40%6-8 1 5%9-10 0 0%11-15 1 5%More than 15 3 15%Total 20 100%

What percent of sales calls are proactive (CT rep initiates call)?

Of responding institutions, at 26%, 5 reported conducting proactive sales calls less than 10% of the time, 5 reported 25%-40%, and 5 reported 50%-74%. By comparison, the national study showed 32% indicated 50%-74% of their sales calls were proactive.

Response Number PercentLess than 10% 5 26%10% - 24% 4 21%25% - 49% 5 26%50% - 74% 5 26%75% - 100% 0 0%Total 19 100%

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What is the level of the organization targeted for the sales call approach?

(Mark all that apply)

Minnesota Institutions target the Human Resources Director (85%), the Training Director (75%) and then the CEO (65%) for the sales call approach. The national study showed 89% targeted the Training Director, 68% targeted the Human Resources Director and 63% called the CEO.

Response Number PercentCEO 13 65%Human Resources 17 85%Training Director 15 75%Other 4 20%Other (please specify) Manager 1 5% IT 1 5% Decision maker 1 5% Department managers 1 5% Safety Director 1 5% Past participants in other trainings

1 5%

To which of the following vertical markets are sales calls targeted?(Mark all that apply)

Vertical markets targeted in Minnesota included Healthcare at 90%, Manufacturing at 80%, and Government at 65%. The national study had Healthcare and Manufacturing tiedat 66%, followed by Government at 50%.

Response Number PercentInsurance 2 10%Finance 4 20%Healthcare 18 90%Government 13 65%Manufacturing 16 80%Construction 6 30%IT Technical 8 40%N/A - our sales calls do not target vertical markets

1 5%

Other, please specify Mining 1 5% Food processing 1 5% Retail 1 5%

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On average, how long does it take to close a sale?

Of Institutions responding, it takes 3-4 weeks (35%) or 1-2 weeks (30%) to close a sale. The national survey indicated 42% took 5-8 weeks to close a sale followed by 37% taking 3-4 weeks.

Response Number PercentLess than a week 0 0%1 - 2 Weeks 6 30%3 - 4 weeks 7 35%5 - 8 weeks 3 15%9 - 12 weeks 4 20%More than 12 weeks 0 0%Total 20 100%

Does your sales staff sell both public seminars and contract training?

Responding Institutions sold both public seminars and contract training 95% of the time. By comparison, the national study indicated that 52% sold only contract training. However, 60% of small institutions have their sales staff sell both public seminars and contract training.

Response Number PercentYes 19 95%No 1 5%Total 20 100%

Does each sales person complete the whole process, from approach to delivery of training?

Of responding Minnesota Institutions, 80% have the sales person complete the whole process from approach to delivery of training. By comparison, the national study indicated 52% of sales people do not complete the whole process, thus using a fulfillment team. However, 66.7% of large institutions do have sales staff complete the process.

Response Number Percent

Yes 16 80%

No 4 20%

Total 20 100%

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If the sales person is not in charge of the whole process (sales and delivery),where and how in the sale/delivery process does the "hand-off" occur?Note: This question was not asked on the national survey.

At the point when the training occurs

It is currently "sales to delivery" but we are changing it to a more defined business development model.

We oversee the whole process but hire others to actually deliver the training

We do have a logistics person who sets up rooms, contracts, materials, etc.

We don't have a "sales" position. Our customized training reps and department directors handle the initial call and we may turn it over to the appropriate trainer as appropriate.

Contract completion and instructor salary payments.

Once the contract is sold/approved by the customer, dates are confirmed, and instructors are hired/secured for the training - the CT Rep hands off to our Customer Support Specialists/Support Staff.

Revenue

Which three services generate the most revenue for your Center?

(Mark no more than 3 responses)

The top revenue generating services in Minnesota were contract training at 100%, public enrollment classes at 80% and on-line classes at 35%. Nationally, contract training was 100% followed by public enrollment classes at 52% and on-line courses at 21%.


Public enrollment classes 16 80%

Contract training 20 100%

On-line classes 7 35%

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Executive coaching 1 5%

One-on-one consulting 3 15%

Assessments 0 0%

Other (please specify)

Fire Fighting Courses 1 5%

Online development 1 5%

What is the average contract sale amount?

In Minnesota, the average contract sale amount was $1,000-$3,999 (50%), followed by $4,000-$7,999 (30%). Nationally, 52% of institutions reported their average contract sale to be $4,000-$7,999. Small institutions led the average contract amount at 80%.


Less than $1,000 2 10%

$1,000 - $3,999 10 50%

$4,000 - $7,999 6 30%

$8,000 - $14,999 2 10%

$15,000 - $24,999 0 0%

$25,000 - $49,999 0 0%

$50,000 or more

Total 20 100%

What is the CT department's net revenue goal?

Net revenue goals were at $100,000 or more (40%). Nationally, 61.1% had expectations of $100,000 or more annual net revenue. All medium institutions surveyed had this goal.


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$0 - $4,999 3 15%

$5,000 - $9,999 1 5%

$10,000 - $29,999 1 5%

$30,000 - $49,999 3 15%

$50,000 - $74,999 0 0%

$75,000 - $99,999 4 20%

$100,000 or more 8 40%

Total 20 100%

What is the formula to determine the annual net retained revenue?Note: This question was not asked on the national survey

Actual Revenue minus any expenditures

Basic revenue minus expenses. Some dollars to support partial secretarial support not CT area.Cost - expenses = 65% profit

Cost of instruction (instructor, books, materials) x 1.5 (for contract) x 1.33 (for open enrollment) We are raising to accommodate fixed costs. Following LERNs model of 40/60

Gross revenue minus expenses (includes staff costs and shared revenue with departments) = margin (retained revenue)Gross revenue per class/contract less course expenses. The net profit margin for contract needs to be on the average - 48%. The net profit margin for Cont Education needs to be 25% based on minimum student enrollment.No formula. Amount agreed upon by the President and CE/CT Vice President.

Projected sales goals less projected expenses

Revenue exceeds expenses! - very simple formula

Revenue minus expenses (does not include any in-direct expenses).

salary + benefits + operating expenses

This is calculated by our CFO.

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We budget conservatively to break-even at the end of the year. We also must produce annual credit FYE goals for the academic side of the house - the academic side keeps this FYE revenue. Whatever "profits" we may have at year-end get rolled forward into our CE/CT accounts.We use a 50% operating margin.

What are the college or university expectations for annual net revenue for your Center?

Minnesota college or university expectations for annual net revenue was $100,000 or more (50%). Nationally, 68% of institutions expected $100,000 or more annual net revenue. All medium institutions had this goal.


$0 - $4,999 4 20%

$5,000 - $9,999 0 0%

$10,000 - $29,999 1 5%

$30,000 - $49,999 1 5%

$50,000 - $74,999 1 5%

$75,000 - $99,999 3 15%

$100,000 or more 10 50%

Total 20 100%

What percent of total revenue for your Center is generated by contract training?

Minnesota Institutions had 35% report that 25%-49% of revenue was generated by contract training. This was followed closely by 30% reporting that 50%-74% came from contract training. On a national level, 42% indicated 50%-74% of total revenue was generated by contract training.


0% - 24% 3 15%

25% - 49% 7 35%

50% - 74% 6 30%

75% - 100% 4 20%

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Total 20 100%

What percent of total revenue for your Center is generated by public enrollment classes?

Nine Minnesota Institutions reported that 0%-24% of their total revenue was generated by public enrollment classes. These nine represented 45% of respondents. On a national level, over half (52.6%) indicated the smallest portion (0%-24%) came from public enrollment classes.


0% - 24% 9 45%

25% - 49% 5 25%

50% - 74% 5 25%

75% - 100% 1 5%

Total 20 100%

Pricing/Products

Please list the target pricing for the following contract training areas

(either in specific dollar amounts or price ranges):Note: This question was not asked on the national survey

Response Number Average Median

Four-hour soft-skill training module

17 $788 $675

One-day soft-skill training module

17 $1,586 $1,500

One-day computer class 14 $1,130 $1,050

One-day customized training program

15 $1,593 $1,250

Credit course per credit hour 8

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What is the percent of discount for volume sales?

Institutions responded at 60% that volume sales did not receive a discount. Nationally, volume discounts on sales were not applicable in 55.6% of institutions. Of those institutions giving volume discounts, 27.8% gave a 10% discount. When discounts were given, only large institutions gave 5%, 10% or 20%.


5% 1 5%

10% 4 20%

15% 2 10%

20% 1 5%

More than 20% 0 0%

N/A-volume sales do not receive a discount

12 60%

Total 20 100%

What are the top 5 products/areas that produce the most revenue for your Center?

(Mark no more than 5 responses)

Results of the survey showed the top products/areas producing the most revenue in Minnesota included Leadership at 65%, Microsoft Products at 60%, Certificate Programs at 55%, and Lean Manufacturing at 50%. The top revenue producing products/areas nationally included Leadership at 68.4%, Microsoft Products at 52.6%, Customer Service at 42.1%, IT Courses at 31.6% and Lean Manufacturing at 31.6%.

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AchieveGlobal 1 5%

DDI 3 15%

Vital Learning 0 0%

Microsoft 12 60%

Project Management 2 10%

Leadership 13 65%

Customer Service 7 35%

Lean Manufacturing 10 50%

IT 7 35%

Teambuilding 5 25%

Certificate Programs 11 55%

Six Sigma 1 5%


1. Nursing Assistant/Entry Level Healthcare 2. Transportation (CDL & Motorcycle Training) 3. Computer Training 4. Law Enforcement CE 5. Automation Training – PLC6. Servos 7. Mechatronics 8. CPR 9. FA 10. Servsafe 11. EMS/Healthcare 12. Fire 13. Health

14.Welding 15.MFG Processes16. Inservice for K12 teachers and administrators

17. Languages, arts

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18. Lean Healthcare

19. Mining Courses, Safety & Health, Fire Fighting

20. Safety

Who owns the curriculum?

The survey response uncovered that both The Center and external consultants owned the curriculum at 75%. Nationally, the majority of institutions (72.2%) indicated they owned the curriculum.


The Center 5 25%

External consultants 0 0%

Both 15 75%

Total 20 100%

Which soft skills are most in demand by your customers?(Mark all that apply)Minnesota Institutions responded the most demanded soft skills included Change at 70%, Conflict at 70% and Time Management at 55%. Nationally the top performers were Change and Conflict at 57.0% each, Presentation Skills at 52.6% and coaching and Performance Reviews at 47.4%.

Response Number PercentCoaching 9 45%Change 14 70%Trust 4 20%Feedback 1 5%Conflict 14 70%Performance Reviews 4 20%Time Management 11 55%Stress Management 4 20%Personality Profiles 8 40%Presentation Skills 6 30%Business Writing 9 45%Other (please specify)

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Teambuilding/leadership skills

1 5%

Customer Service 1 5% Non-profit administration 1 5% Motivating Workforce 1 5%

Which computer classes are most in demand by your customers?(Mark all that apply)

The most demanded computer classes for Minnesota included Excel at 75%, Word at 65% and PowerPoint at 50%. Comparing to the national study, Excel came in at 89.5%, Word at 63.2% and Access at 52.6%.

Response Number PercentWord 13 65%PowerPoint 10 50%Excel 15 75%Access 9 45%Outlook 7 35%Project Management 4 20%Oracle 1 5%Windows 5 25%Not applicable 2 10%Other (please specify) Computer networking security HTML, Flash, web design, cad Quick Books WEB Marketing

Where do you find your leads? (Mark all that apply)

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Minnesota Institutions found leads primarily from referrals (90%) and then from a response from a marketing piece (80%). Nationally, the largest lead generator came from referrals (94.7%). Large institutions utilized the most resources with referrals, marketing pieces, college representatives and grant leads.

Response Number PercentNewspaper 6 30%Referrals 18 90%Purchased lists 2 10%Chamber lists 10 50%Response to marketing piece

16 80%

College representative gives the lead

9 45%

Grant lead 9 45%Other (please specify) Webpage College foundation, business expos/college fairs Cold calls and exiting customers/relationships President B&I visits

In what industry are your top two customers?(Mark no more than 2 responses)

From the survey, top customers came from Healthcare (60%) and then Manufacturing (55%). The national results found Manufacturing was the leading industry at (36.8%) and then Healthcare at 36.8%.

Response Number PercentBanking & Finance 2 10%Manufacturing 11 55%Healthcare 12 60%Insurance 1 5%Retail 2 10%Technology 6 30%Construction 2 10%Other (please specify) Government (Firefighting, public sector, government, municipalities, K12 schools, State Agencies)

6 30%

Mining 1 5%

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Energy 1 5% Transportation 1 5%

Trainers/Consultants/Faculty

What is the hourly rate for a soft skills trainer?

The state survey indicated that 40% said the hourly rate for a soft skills trainer was $50-$74 per hour. In second place was $100 or more per hour at 30%. Nationally the soft skills trainers received $50-$75 per hour (42.1%) or $75-$99 per hour (36.8%) Forty percent of small institutions paid soft skills trainers $100 or more per hour.

Response Number Percent$15 - $24 per hour 0 0%$25 - $49 per hour 5 25%$50 - $74 per hour 8 40%$75 - $99 per hour 1 5%$100 or more per hour

6 30%

Total 20 100%

What is the hourly rate for a computer instructor?

In Minnesota, some computer instructors made $25-$49 per hour (35%), and some made $50-$74 per hour (30%). The national survey indicated that most computer instructors received $50-$75 per hour (52.6%).


$15 - $24 per hour 0 0%

$25 - $49 per hour 7 35%

$50 - $74 per hour 6 30%

$75 - $99 per hour 3 15%

$100 or more per hour

1 5%

Not applicable 3 15%

Total 20 100%

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Does your CT department have full-time trainers on staff?

The state survey responded that 80% of CT departments do not have full-time trainers on staff. Nationally, 84.2% of institutions said they did not use full-time trainers.


Yes 4 20%

No 16 80%

Total 20 100%

What do full-time trainers teach? (Mark all that apply)If Minnesota Institutions did have full-time trainers on staff, 20% said they were teaching soft skills training or Lean. Nationally, full-time trainers taught soft skills (66.7%) and computer classes (66.7%).


N/A 11 55%

Soft skills training 4 20%

Computer classes 3 15%


Leadership 2 10%

Lean 4 20%

Mfg 2 10%

EMS 1 5%

Safety 2 10%

Health 1 5%

Automation 1 5%

Fire 2 10%

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What is the pay rate for full-time trainers?

If Minnesota Institutions had full-time trainers on staff, they paid them $25-$50 per hour (20%). Nationally, full-time trainers were paid $25-$50 per hour (66.7%). On large institution paid $40,000/year for a full-time trainer.


N/A 13 65%

$10 - $14 per hour 0 0%

$15 - $24 per hour 1 5%

$25 - $50 per hour 4 20%


$70 per hour plus benefits

1 5%

No response 1 5%

Total 20 100%

What audience is targeted by marketing materials?(Mark all that apply)

Marketing materials targeted Training Directors (75%) and HR Directors (60%) in Minnesota. Nationally, the target was the same with 73.7% respectively.

Response Number PercentIT Directors 5 25%HR Directors 12 60%Training Directors 15 75%Sales Directors 4 20%N/A - marketing pieces do not target specific audiences

6 30%

Other (please specify) CEO 2 10% General public 2 10% Target industry 1 5% Decision makers 1 5% Department managers 1 5% Safety directors 1 5% Past training participants 1 5% Target professions, e.g. nurses, police officers, social workers

1 5%

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How are marketing materials tracked? (Mark all that apply)

The state survey response indicated that marketing materials were not tracked (50%). Nationally, 63% of institutions do not track their marketing materials.

Response Number PercentTracking ID number 2 10%Color coded 1 5%Specific name for registration 5 25%N/A - marketing pieces are not tracked

10 50%

Other (please specify) Participant evaluation question "How did you hear about us"

2 10%

Starting or working on this 2 10% Tracking stats for hits to directed websites

1 5%

ZIP code 1 5%

Measure Impact of Program and Services

Is Return on Investment (ROI) measured?

Minnesota Institutions said they did not measure return on investment (55%). However, 45% of institutions said they did measure ROI, and some of the processes are listed below. Nationally, 68% of institutions were measuring ROI. Primarily they were using Lean and Six Sigma, pre and post testing, Kirkpatrick up to Level 3 and technical validation vs. training.

Response Number PercentNo 11 55%Yes 9 45%Total 20 100%Please explain the process: Lean projects have implicit cost and labor savings tools, DDI provides some tool to begin to understand ROI We track detail revenue and expenses for each class, project, etc Students complete a pre and post evaluation in addition to client 30-45 day in-depth evaluation with the option of more intensive study Tracked when required/requested Sometimes ROI of experiential projects

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ROI on each given project.......cost versus revenue generated Margin (net) is determined for each project

Which level of evaluation is used at the conclusion of the training?(Mark all that apply)

Most institutions responded (95%) they used a Level 1 evaluation. Nationally, the same was true—Level 1 evaluation response at $84.2%.

Response Number PercentLevel 1 - Participants complete a form self assessing the value of the program

19 95%

Level 2 - Learning is measured through skill practices, role-plays, simulations

13 65%

Level 3 - Behavior on the job is measured through performance-based objectives

6 30%

Level 4 - Business results measured through output, quality, costs, time, etc.

5 25%

How much do you charge for these evaluations?

On the state level, 95% said they did not charge for the evaluations. Nationally, 94.7% did not charge for the evaluations.

Response Number Percent$5 - $9 0 0%$10 - $24 0 0%$25 - $49 0 0%$50 or more 1 5%

19 95%Total 20 100%

Is a pre-assessment given before the training is provided?

Minnesota Institutions indicated they did give a pre-assessment before the training was provided (70%). Nationally, over 89% gave a pre-assessment before training was provided.

Response Number PercentNo 5 25%Yes 14 70%

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No Response 1 5%Total 20 100%Please explain: When requested 3

Depends on client and training 6

Sometimes 4

Usually/after 2

Is a post-assessment given after the training is provided?

Eighty percent of the state survey respondents gave a post-assessment after the training was provided. On the national survey, 84% gave a post-assessment after the training is provided.

Response Number PercentNo 2 10%Yes 16 80%No Response 2 10%Total 20 100%Please explain: When requested 2

Depends on client and training 5

Sometimes 2

Usually/often 1

More often than pre-assessment 1

Contract Training for Credit

Does your college or university provide contract training for credit at a company's site?

Minnesota Institutions responded they did provide contract training for credit at a company’s site (80%). Nationally, the majority of respondents indicated they do provide contract training for credit on-site (68.4%).

Response Number PercentNo 4 20%Yes 16 80%

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Total 20 100%What percentage? Small percentage (<5%)

6 50%

Medium (5-49%) 3 25% Large (>50%) 2 17% Have capability but no % given

1 8%

TOTAL Responses to percentage

12 100%

What is the dollar volume for contract training for credit per year?

The state survey showed credit contract training was at $30,000 or more per year (40%). Nationally, the results were the same. The dollar volume was $30,000 or more per year (46.2%).

Response Number Percent< $1,000 1 5%$1,000 - $4,999 4 20%$5,000 - $9,999 4 20%$10,000 - $29,999 1 5%$30,000 or more 8 40%No response 2 10%Total 20 100%

What are the top two credit classes you provide through contract training?

Minnesota Institutions provided a wide variety of credit classes for contract training. Some of the top ones included classes for Manufacturing (20%) and classes for Healthcare (20%). In addition, these Institutions provided Business (15%) and Computer Information Services (10%). Nationally, Business Classes (69.2%) and Computer Information Systems (46.2%) were the top two credit classes provided through contract training.

Response Number PercentBusiness 3 15%Computer Information Services

2 10%

Mathematics 1 5%English 1 5%EMS 2 10%

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Other (please specify) Some reported more than one

6 30%

Certified Nursing Assistant

2 10%

Manufacturing 4 20% Health (Practical nurse, lean, not specified)

4 20%

Criminal justice 1 5% Social work 1 5% Engineering 1 5% Management, supervision

1 5%

Technical Certification 1 5% K12 In-Service 1 5%

If resources were not an issue, what one thing would you do to create more business for your Center?(Several respondents gave more than one recommendation.)

On the state survey, respondents said they could create more business if they could increase marketing (staff and materials) and improve processes. On the national survey, Institutions wished they had more sales people (68.4%) and better leads (52.6%).

Response Number

Increase marketing (staff and materials) 10

Develop on-line training 3

Develop specialty areas 4

Improve processes 5

Modify the paper work, increase advertising

Ongoing marketing

Develop more online content

Put more training online. Hire a high-end electronic marketing service and manufacturing trainers.Create an inbound/outbound call center

Develop specialty areas and hire instructors accordingly.

Throw out the teacher contract

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Internal Continuous Curriculum R&D

More sales and support staff

Customer management system (Glad to hear it is coming!)

Implement a Lean project to cut out all the inefficient processes in CTCE!

Hire an additional CT Rep

Lead generator, additional marketing materials, better web resources, more time for program developmentDevelop more certificate programs

Premiere marketing products

More open enrollment and "free" session to market our services.

Develop and market on-line learning courses, degrees, certificates, contract on-line education, etc.Create online non-credit training in areas to complement existing face-to-face training.

Increase marketing activities, e.g., staffing, print, on-line, media, etc.

Hire one person to handle the marketing of our classes and programs.

List 3 things that keep you from running your Center "like a business."

Minnesota Institutions responded that faculty contracts and state policies and procedures keep them from running the Center “like a business”. Nationally, comments included internal systems like our registration system, inflexibility of community college system, certain processes, working in an academic atmosphere, finding qualified instructors, top level support, and college structure.

Response Summary Number

Faculty contracts 10

State policies and procedures 10

MnSCU accounting, registration system 4

Lack of resources (staff, center, infrastructure) 4

Better business operating tools, i.e. CRM or database of instructors

4

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More and timelier marketing 3

Lack of specific institution support 3

Disagree: Do run it "like a business" 3

List the most innovative thing your Center has done to create more business.Note: This question was not asked on the national survey

Partnered with other sister institutions to sell programs that are already developed.

Interactive online training

MJSP grants have really helped to develop capacity which can then be utilized to serve other business & industry

Created and marketed a spring catalog of offerings with ads for customized opportunities

Collaborated with academic departments to provide degree and licensure programs off-campus

Work with Master(s) programs to provide graduate level students to work on projects.

We received a $1.9M advanced manufacturing grant.

Build capacity whenever possible

Use arts and creativity within business. We are a very custom operation - sell few products.

Development of a strategic college-wide business outreach plan in cooperation with college administration, academic areas and college foundation.

We have actually built automation trainers for a large OEM customer....and they use these trainers for their own

Mobile medical simulation lab

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Secure numerous grants for innovative educational courses

Mine Safety and Health consulting services

Build in-house capacity to produce video training and high-end online training.

Listens to the industry needs and develop programs that will meet their goals.

Use of online open enrollment classes

We are breaking down the program silos and having a more integrated approach to selling....relationship selling

Conferencing and institutes

Why do companies use your Center vs. another vendor?(Mark all that apply)

The state survey responses included 95% quality of instructors, 90% quality of programs and 75% cost. Nationally, Institutions listed cost at 89.5%, quality of instructors at 84.2% and quality of programs 84.2%.

Response Number PercentCost 15 75%Convenience 14 70%Quality of instructors 19 95%Quality of programs 18 90%Other - Please specify 8 40% Customer service 4 20% Flexibility and responsive 2 10% Knowledgeable CT staff 1 5% Unique programs available 1 5% Client relationships 3 15%

What do you wish your sales team had now that it does not have?(Mark all that apply)

Minnesota Institutions wished their sales team had more staff (60%), larger budget (60%) and better leads (50%). On the national survey, respondents stated they wished for more staff (68.4%) and better leads (52.6%).


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More staff 12 60%

Larger budget 12 60%

Better leads 10 50%

Someone to do fulfillment 7 35%

No boundaries 5 25%

Sales training 6 30%

Professional development training

7 35%

Other (Please specify) 6 30%

Development of an "real" business development model

Resources to draw from a larger consultant base for instruction

Equipment

Less politics ... a space of our own (including parking)

Customer Relations Management Software

More marketing support

What is the most optimistic level of gross sales success that you can envision for your team this fiscal year?

The state survey listed the most optimistic level of gross sales success for this fiscal year to be $500,000 - $1 million (40%) and less than $500,000 ($35%). Nationally, in 2006, respondents indicated 52.6% would experience $1-$2 million of sales success for the team that fiscal year.


Less than $500,000 7 35%

$500,000 - $1 million 8 40%

$1 - $2 million 3 15%

$2 - $3 million 2 10%

$3 million or more 0 0%

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Total 20 100%

What is the most optimistic level of gross sales success that you can envision for your team in three years?

The three-year projections included 40% saying $500,000 - $1million and 30% saying $1-$2 million gross sales success in three years. Nationally, the vision was $1-$2 million (44.4%) and up to $7 million or more (24%).


Less than $500,000 2 10%

$500,000 - $1 million 8 40%

$1 - $2 million 6 30%

$2 - $3 million 2 10%


Total 20 100%

What is the most optimistic level of gross sales success that you can envision for your team in five years?

The five-year projection for gross sales success included $1-$2 million at 35% and $500,000-$1 million at 25%. Nationally, Institutions envisioned $3-$4 million (42.1%) and up to $7 million or more for small, medium and large institutions.


Less than $500,000 1 5%

$500,000 - $1 million 5 25%

$1 - $2 million 7 35%

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$2 - $3 million 2 10%


Total 20 100%

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Minnesota Best Practices

Of the 20 Colleges and Universities in Minnesota responding to the Workforce Development Benchmark Survey, there are many Best Practices being utilized throughout the State. Many of these Best Practices are compatible with colleges identified in the National Benchmark Study. Best Practices include the following:

Conduct 3-5 sales calls per week

Target viable vertical markets of Healthcare, Manufacturing and Government

Takes 3-4 weeks to close a sale. The national average was 5-8 weeks.

Offers similar top products to the national survey—Leadership, Microsoft, Lean

Top Soft Skills Classes offered are same as the national survey—Change, Conflict

Top Computer Classes are Excel, Word, PowerPoint and Access

The #1 way to obtain leads was through referrals

Offers pre and post-assessments before and after the training

Sells credit contract training, and meets the national average of $30,000

Top credit classes are Business and Computer Information Systems, which is the same on the nationwide survey

Can operate in multi county locations

Partner with sister institutions to sell programs that are already developed

Interactive on-line training

Obtained $1.9 million Advanced Manufacturing Grant

Developed a strategic college-wide Business Outreach Plan with college administration, academic areas and college foundations

Built Automation Trainers for a large OEM customer and they now use these trainers for their own

Mobile Media Simulation Lab

Breaking down program silos and doing more relationship sellingPotential Growth Areas for

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Minnesota Colleges and Universities

The purpose of the Workforce Development Benchmark Study was to determine Best Practices within the Minnesota Colleges and Universities and identify potential growth areas after the study was completed. Some potential growth areas include:

Increase the number of proactive sales calls to customers. Currently, the survey indicated 5 colleges conducting proactive sales calls less than 10% of the time, 4 colleges at 10%-24%, 5 colleges at 25%-49% and 5 colleges at 50%-74%. The wide spread results indicates that many sales calls are still reactive, and could account for the smaller size of contracts being closed.

Approach higher level decision-makers in a company. Target the CEO and VP of a company first, and then approach the Training Director and HR Director. When this happens, there is greater buy-in from upper management and larger contracts are closed.

Increase the size of contracts sold. The average contract sold in Minnesota was $1,000-$3,999. Nationally, the average size contract was $4,000-$7,999. Perhaps the shorter sales cycle in Minnesota was reflected by the smaller size contract which is usually easier and faster to sell.

Sell more contract training. The survey indicated the total revenue sold in Minnesota was 25-49% in contract training. The national average for total revenue sold was 50-75% in contract training.

Perhaps raise the computer instructor payments. Minnesota is below the national average for computer payments at $25-$49 versus $50-$75 nationwide. However, if the quality of instructor is good, stay with this current practice.

Consider relooking at the fulfillment process. Minnesota reported 80% completed the whole process from approach to delivery. Nationally, 52% of colleges do not complete the whole process. Consider having the sales person sell the contract and then work with a coordinator or administrative assistant to fulfill the logistics. An outside consultant or faculty member would deliver the training. This frees the sales person to continue making proactive sales calls.

Look at e-Marketing. Print marketing is costly and time-consuming. In addition, it is difficult to track and the shelf-life is short. E-Marketing is more cost-effective, and the college can track the results while targeting specific groups.

Establish and grow a marketing process. Create a state-wide process for effective marketing. Create a budget and a staff for this purpose.

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Final ThoughtsThe Minnesota State Colleges and Universities (MnSCU) has done a fine job of providing uniformity and structure for the Institutions in the state. Because of this structure, more resources and partnerships are available because of the buying power of the State.

The Workforce Development Benchmark Study really highlighted the strengths of the 20 participating Colleges and Universities. The Study also uncovered a large need for assistance with marketing. Many respondents indicated they wanted to increase the marketing staff and materials, create premiere marketing products, and increase marketing activities. As indicated in the areas of growth—establish a statewide budget and process for marketing the services of the Colleges and Universities

In addition, continue to grow the sales staff at each Institution with proper training, coaching and processes for making proactive sales calls to a target company and speaking only to the decision-maker.

Once the marketing is established and the sales staff is working at full capacity, the State will begin to see additional business, new targeted companies, larger contracts and more long-term relationships.

The results of this Minnesota Workforce Development Benchmark Study could impact future decisions for growth, internal processes, target markets, structure and ability to be more competitive. MnSCU is to be congratulated for benchmarking their Colleges and Universities against the national Workforce Development Benchmark Study.

Please direct any questions or comments about this Benchmark Project to:

Kathy YeagerPresidentContract Training Edge [email protected]

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