T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
November 2011
Presented By:
• Timothy Theberge, U.S. Department of Labor - ETA
• Jeff Ryan, U.S. Department of Labor - ETA
The New ETA Vision for Rapid Response
T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
The PROMISE
of the Workforce Investment
System
When you need us most,
we will be there.
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Why are we here?
• Our mission is to establish a comprehensive, collaborative effort to improve the Rapid Response system throughout the country by promoting consistent, high quality, timely and innovative responses to economic transition.
• We are “America’s Backstop”
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
March 2011
Rapid Response: Transition Management
T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
What Is Rapid
Response?
Rapid Response • Required state function under the Workforce
Investment Act (WIA); funded by reserving up to 25% of the state’s WIA Dislocated Worker allotment
• Provides direct reemployment services and facilitates additional services and resources; carried out by states and local workforce development organizations in partnership with One-Stop Career Centers.
• Arranges for the provision of support services such as unemployment insurance, health care, home heating assistance, legal aid, financial advice, and other forms of critical assistance to affected workers and communities
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
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Faster engagement
= Better results
AND….
Rapid Response is a primary gateway to the workforce system for both dislocated workers and employers
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Legislative Authorization
Sec 665.300 WIA Final Rule
(a) Rapid response … “activities necessary to plan and deliver services to enable dislocated workers to transition to new employment as quickly as possible”
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From the Regs…
T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
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Timely, consistent and high-quality services to workers and businesses
• Timely and Consistent • Providing the right information and
services, when, where and how needed to best serve workers and businesses
• It does not mean cookie-cutter or one-size fits all solutions
• High-Quality
• Proactive, comprehensive solutions that meet the needs of workers and businesses
Customized Consistency
T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
March 2011
Rapid Response: It’s not just for layoffs anymore.
T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Rapid Response is PROACTIVE
• Prepared • Delivered through a well-developed service
infrastructure
• Fully integrated Layoff Aversion strategies
• Early Intervention • Engaged with the regional economy
including:
• Labor
• Economic Development
• Business Community
• Local WIBs & One Stops
• Education
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Don’t wait for WARN…
T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
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Solution-Based Approach for Managing Transitions in an Evolving Economy.
• Addresses the needs of employers, workers, and community through development of ongoing strategies to ensure long-term economic stability and growth
• Employs strategies gained from expertise, perspectives, and efforts of extensive network of partners and stakeholders
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Solutions-Based
Transition Management
T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
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It is NOT event-driven; it is a pro-active approach to planning for and managing economic transitions. Rapid Response requires:
• Ongoing efforts to build relationships with employers and other community stakeholders
• Knowledge of labor market trends and economic forecasts
• Strategic planning, data gathering and analysis designed to anticipate, prepare for, and manage economic transition
• Understanding workforce assets and needs
• Convening, facilitating, and brokering connections, networks, and partners
• Planning for and responding to layoffs, minimizing their impacts wherever possible
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Bend the Curve
T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Rapid Response
Throughout the Business
Cycle
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
March 2011
An orientation does not Rapid Response make. If it does, you’re doing
it wrong.
T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
OVERALL PROCESS High Level “Reader’s Digest” Version
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Research &Discovery
Research &Discovery ActivationActivation
Employer Contact
and/or Layoff Announcement
Employer Contact
and/or Layoff Announcement
Meet withEmployer/Company
Meet withEmployer/Company
Determine Intervention Required
Determine Intervention Required
TailorPlan
TailorPlan
Determine & FacilitateAdditionalServices
Determine & FacilitateAdditionalServices
T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Things to Keep On Your Radar Tracking and Evaluation
(Continuous Improvement) Follow-Up
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
LWIB - Local Workforce Investment Board
NEG - National Emergency Grant
OSCC - One-Stop Career Center
TRA - Trade Readjustment Act
UI - Unemployment Insurance
WIB – State Workforce Investment Board
Rapid Response Flow Chart
T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Research and Discovery Forecasting (identifying indicators)
• Networks, non traditional networks, WARN notices, etc.
• Look at market, LMI data for area, etc.
• Labor, Economic Development, WIBs
• GOALS:
• Collect with as much relevant information/data as possible before meeting with the employer
• Seek opportunities to be proactive and avert or minimize layoffs
Research and Discovery Forecasting (identifying indicators)
• Networks, non traditional networks, WARN notices, etc.
• Look at market, LMI data for area, etc.
• Labor, Economic Development, WIBs
• GOALS:
• Collect with as much relevant information/data as possible before meeting with the employer
• Seek opportunities to be proactive and avert or minimize layoffs
Research and
Discovery
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Research and
Discovery(cont’d)
Importance:• Provides foundation for developing a
broad strategic approach
• Creates opportunities for being PROACTIVE
• Early discovery provides information needed to take appropriate action
• Gives insight for targeted outreach & information dissemination
• Raising awareness of your Rapid Response services and network of resources encourages participation and information sharing
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Who Should Be Involved:
• ALL relevant information sources, formal and informal
Key Things To Consider:
• INFORMATION IS POWER
• Get information OUT so employers & workers are aware of services
• Get information IN to proactively create
strategies & services
• MUST be able to articulate “What’s in It For Them” & the value proposition
• This step is not always in response to a specific event
• ALWAYS stay aware of the workforce and economic indicators
Research and
Discovery(cont’d)
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Activation
Activation:• Awareness of a pending event
• Layoff announcement, WARN, or information provided through partners or early warning mechanism
• Assess the Situation• Gather information/facts, prepare materials,
contact company and identify potential tactics for layoff aversion, expansion, or layoff minimization (PROACTIVE Vs. Reactive)
• Customize strategy for specific event• Begin to tune your response to the customer’s
needs and your service strategy
• Engage/Connect with local area (WIBs)
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Activation(cont’d)
Importance:• Begins “movement” toward a strategy/
solution
• Continues information gathering and assessment of the situation with input from other partners (Local WIB, etc.)
Who Should Be Involved In Step 2?
• WIBs/Local Areas
• Sources of information that can “fill in the blanks” regarding information about the employer
• Preliminary contacts to key partners
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Key Things To Consider: • Tools MUST already be in place
• “Tools” such as partnerships/a resource network, collateral materials, etc., are necessary for proceeding in a timely and consistent manner
Activation(cont’d)
Summon your inner Boy Scout: ALWAYS BE PREPARED!
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Initial Employer Contact and/
or Layoff Announcement
Includes:• Contact employer, set up a meeting, etc.
• Can be the result of a layoff announcement or a chance to offer services to a growing or declining company (Proactive)
• GOAL: Face-to-face meeting with employer representatives w/decision-making authority
Importance:• Relationship with employer or employee
starts here
• Remember, you only have one chance to make a first impression
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Key Things To Consider:• Preparation is Key
• It is ESSENTIAL gather information about employer/company before this step
• It Can Be Challenging• Employer may not want to meet
• Presenting a solid value proposition and articulating “What’s In It for Them” is critical
• “Do or Die”• Instilling trust with the employees and
employers from the start is a MUST
Initial Employer Contact and/
or Layoff Announcement
(cont’d)
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Meeting with Employer/Company
Includes:
• Great Rapid Response starts with asking one question: “What’s happening in your company?”
• Leverage your partnerships
• This is where layoff aversion, Trade, NEG, and more come into play
• Coordinate with union/labor representatives
• Explore layoff aversion and minimization possibilities
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Meeting with Employer/Company
(cont’d)
• Determine and coordinate with partnerships/resources the company already has in place (outplacement firms, etc.)
• Determine the severance package and how it may effect UI
• Ask about the demographics of the workforce (ex., language barriers, other special needs)
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Importance:
• An opportunity to demonstrate your value to the employer or employee
• Offers insight on other potential partners/resources that can be used to provide services to the employer/ employees
• Further develops the relationship with the employer
Meeting with Employer/Company
(cont’d)
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Key Things To Consider:
• Investigate/explore how the pending layoff or plant closure will affect other outside companies and/or other facilities that they own in other locations
• Again, a PROACTIVE approach can result in the acquisition of valuable information
• Tracking and Evaluation are critical here (tracking company information, who you meet with, how many employees are served, etc.)
Meeting with Employer/Company
(cont’d)
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Determine Intervention Required:
Compile Information and Notify System
Partners
Includes:
• Establish working partnership with the company/union
• Develop 1.)Transition Plan or 2.) Layoff Aversion Plan
• Plans need to remain fluid and flexible
• Determine other workforce programs that may need to be notified/involved (Trade, NEG, UI, etc.)
• Coordinate with Local Area/WIB
• Determine funding needs and from where it will come
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
• For Transition Plans:
• Determine other outside partners to involve (EDA, TAA for Firms, Unions, MEP, etc.)
• Conduct a pre-feasibility study
• GOAL: Leverage time onsite prior to the layoff to provide as many services as possible (i.e. onsite transition center)
Determine Intervention Required:
Compile Information and Notify System
Partners(cont’d)
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
• For Aversion Plans:
• Conduct a pre-feasibility study
• ESOPs
• (Workshare)
• Incumbent Worker Training Programs
• Company Matching
• Staff Training
• And Many More…
Determine Intervention Required:
Compile Information and Notify System
Partners(cont’d)
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Importance:• This is where you align your team,
strategy, and your plan
• Working partnerships are truly established at this step – you become part of their solution
• You are assembling the components for your plan
Who Should Be Involved?• WIBs, One-Stops, UI, Unions… EVERYONE
– all relevant partners*
* BEWARE of the Entourage Effect when meeting with employers
Determine Intervention Required:
Compile Information and Notify System
Partners(cont’d)
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Key Things To Consider:
• Leverage as much time as possible prior to the layoff “onsite, on company time”
• Seek opportunities to avert or minimize a layoff, i.e., company match, workshare, etc.
• GOAL: To walk away from the process with the company as a partner
Determine Intervention Required:
Compile Information and Notify System
Partners(cont’d)
* This is a good time to look for company contributions
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Tailoring the Plan
Includes:
• Determine union/employer coordination
(Labor/Management Committees, etc.)
• Bring other companies into the mix/onsite to match skills
• Coordinate with other on-site providers (e.g., outplacement, etc.)
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
• For Aversion Plans – coordinate with economic development agencies, UI (Workshare), MEP, & others to provide services
• Transition from onsite services to One-Stop Career Center services
“Know when the time is right to let go.”
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Tailoring the Plan(cont’d)
T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Tailoring the Plan(cont’d)
Importance:• Explore every option• Allow for customized solutions – serving
the employer/employee’s specific needs
Who Should Be Involved:• Again, WIBs, One-Stops, UI, Unions…
everyone providing solutions specific to your plan
Things To Consider:• GOAL: Develop a “lifelong” partner – a
working relationship that continues into the future and remains valuable throughout all stages of the business cycle
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Determine Additional Services
Includes:
• “JUST DO IT”
• Maintain relationships developed throughout the process - stay in touch, make sure all needs were met, look for new opportunities to work together
• Ongoing talent management (throughout the business cycle)
Importance:
• Cements relationships for future endeavors
Things To Consider:
• GOAL: Make it so they cannot imagine doing business without you.
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
March 2011
Quality Principles of Rapid Response
T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
1 TimelinessThe quicker information and services are provided, the quicker workers can start the reemployment process
2Internal and External Partnerships
• Help communities pull together
• Provide access to a wide range of resources
• Build collaborative opportunities
3 Leveraging Resources
Creates strong community support network that goes beyond Rapid Response and One-Stop activities
4Seamless Service Delivery
Ensures efficiency and productivity in providing services and getting people reemployed
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10 Quality Principles +1
T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
10 Quality Principles +1
5 Active Promotion
Marketing services through materials, media, websites, social networking, meetings, events, etc.
6 Layoff Aversion
Potential strategies that help retain/save jobs:
• Instant labor exchange / Reemployment
• Self-Employment Assistance (SEA)
• Prefeasibility studies
• Incumbent worker training
• Workshare
• Linkages to loan programs and other business assistance programs
• Management or employee buyouts using ESOPs or conventional financing
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
10 Quality Principles +1
7Consistent and Accurate Information
Information specific to the worksite and community and includes non-job-specific referrals to services and agencies
8 ConvenienceMeeting the schedules and location(s) that meets worker and business needs; connecting to One-Stops
9 Customer Choice
Customizing services to meet local or event-specific requirements enhances the success of helping people transition back to employment
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
10 Quality Principles +1
10 Measure of Success
Measurable goals provide valuable feedback
• Collect measurable data (ex.: How many individuals were served?)
• Determine if activities are successful
• Identify potential problems
• Make changes to ensure continuous improvement
+1 INNOVATE Re-evaluate, Re-vise, Evolve!
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
March 2011
Layoff Aversion 2.0
T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Defining Layoff
Aversion
From TEGL 30-09:• ETA considers a layoff averted
when: • 1) a worker’s job is saved with an
existing employer that is at risk of downsizing or closing; or
• 2) a worker at risk of dislocation transitions to a different job with the same employer or a new job with a different employer and experiences no or a minimal spell of unemployment.
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
What is Layoff
Aversion?
• Layoff aversion activities exist as a continuum of potential approaches
• Layoff Forecasting/Early Warning Networks
• Full layoff aversion (rare)
• Pre-feasibility studies, buyouts, ESOPs, etc
• Lessening the impact of a layoff (the norm)
• Workshare Programs
• Company Match (growing employers with layoff employers)
• Incumbent Worker Training
• On-the-Job Training
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Saving the Company or Jobs
BROADER IDEA: Lessening the Impact of Layoffs
• Lessening the number of employees that the company needs to layoff
• ESOPs - Employee buyouts
• Finding a buyer for the closing business
• Linking with Economic Development
• Incumbent worker programs
• Workshare*
• Fewer people filing for UI benefits
• Claimants filing for fewer weeks
• Linking with other companies that are hiring (Company Match)
• OJT programs-linking with growing companies
• Early warning networks
• Effective partnerships
1 2
* Not currently available in Ohio.
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Instant Labor Exchange
• Skill set analysis mapped to regional economy will result in the identification of career pathways
• Short-term training with sufficient notice/awareness of layoff will allow for workers to be trained prior to actual layoff
• Real world examples already happening
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Company Match
• Minimize the impact of the layoffs that are occurring at a particular plant closing or downsizing by placing employees in new jobs prior to layoff
• Minimize the length of unemployment if not placed prior to layoff
• Matching the skills of employees who have been notified of a layoff (and not yet laid off) with those of companies that are in need of skilled employees. – Direct Match
• Masco/Kenworth
• Express Loan/Equity Trust
• Training employees and placing them in new careers prior to layoff – Customized Training
• Polaroid/Bose
• Avon
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
March 2011
Unemployment Insurance as Workforce Investment
T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
UI = Workforce
Development
• UI Training Waivers• Allows UI claimants to participate in WIA, TAA
and other training programs to improve employability
• Additional Benefits during Training (ABT)• Additional, state-funded benefits for
individuals in approved training (7 states)• State funds available for training
purposes• Usually targeted to incumbent workers• Ohio Department of Development
• Workshare (Short-Term Compensation)• Allows employers to retain skilled workers• 21 states; 1 pending
• Self-Employment Assistance (SEA)• Allows entrepreneurship training while
receiving UI (9 states)
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
March 2011
Rapid Response: Partnering For Success
T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Rapid Response Initiated
Programs
• Response to company closures and layoffs
• Layoff Aversion / Company Matching
• Rapid Response Set-Aside
• National Emergency Grants
• Trade Adjustment Assistance• For Firms• For Workers
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Building Partnerships
• Private Outplacement
• Economic Development
• Business Community
• Other State and Local agencies
• Community-based Organizations
• Faith-based Organizations
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Partnering With
Outplacement Firms
• Companies have ongoing relationships with outplacement.
• Outplacement can benefit from partnering with Rapid Response.
• Outplacement firms work with companies in the planning of services for upcoming layoffs.
• One of the questions when first meeting with a company is whether outplacement is involved
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
• Early intervention services allow dislocated workers the best chance of re-entering the workforce with the least amount of time and money lost.
• 31 states currently owe $41b in UI loans to the USDOL• Rapid Response services in
Massachusetts saved the MA UI Trust Fund an estimated $6.6m in PY2008
Rapid Response & The Bottom
Line
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
• Sharing information on company closings and layoffs.
• Sharing information of company expansions.
• Working together to enhance business growth.
• Identifying reasons companies leave and stay.
Linking With Economic
Development
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
March 2011
Wrapping Up
T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Lessons Learned
• Get into the companies as early as possible before signs of trouble.
• Have one point of contact or designated lead to coordinate all of the available economic development tools.
• Think of Rapid Response funding as one of many economic development tools.
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T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
If the worst economic condition since the
GREAT DEPRESSIONisn’t enough motivation, what’s it going to take?
“If you do what you’ve always done, you get what you always
got.” – Roger von Oech
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The Time to Innovate
Was Yesterday
T H E N E W E T A V I S I O N F O R R A P I D R E S P O N S E
Thank You!
Jeff RyanOffice of National ResponseU.S. Department of LaborEmployment and Training [email protected]
Timothy ThebergeBoston Regional OfficeU.S. Department of LaborEmployment and Training [email protected]@gmail.comSkype: tim.theberge
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