Proactive Technologies Report – December, 2019

“Full Job Mastery” means “Maximum Worker Capacity” – A Verifiable Model for Measuring and Improving Worker Value While Transferring Valuable Expertise

by Dean Prigelmeier, President of Proactive Technologies, Inc.

It is no secret that with the traditional model of “vocational” education, the burden of the job/task-specific skill development falls on the employer. It is not economically feasible nor practical for educational institutions to focus content on every job area for every employer. So they, instead, focus rightly on core skills and competencies – relying on the employer to deliver the rest. This is where the best efforts of local educational institutions and training providers begin to break down even if highly relevant to the industry sector.

Employers rarely have an internal structure for task-based training of their workers. Even the most aggressive related technical instruction efforts erode against technological advances as every month passes. If core skills and competencies mastered prior to work are not transformed quickly into tasks the worker is expected to perform, the foundation for learning task performance may crumble through loss of memory, loss of relevance or loss of opportunity to apply them.

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New workers routinely encounter a non-structured, rarely focused, on-the-job training experience. Typically, the employer’s subject-matter-expert (SME) is asked to “show the new employee around.” While highly regarded by management, the SME (not trained as a task trainer and having no prepared materials) has difficulty remembering the nuances of the tasks when explaining the process to the new employee, since that level of detail was buried in memory long ago. Each SME, on each shift, might have a different version of the “best practice” for processes, confusing the trainee even more – rendering the notion of “standardization” to “buzzword” status.

Initially, new employees have difficulty assembling, understanding and translating the disjointed bits of recollection into a coherent process to be replicated. Each comes with their own set and levels of core skills and competencies, and learning styles vary from the self-learner/starter to the slow-learner worker who, with structure to make sure they learn the right best practice, may become loyal, high-quality workers.

The more time the SME spends with the new employee in this unstructured, uncontrolled and undocumented experience, which is the prevailing method of on-the-job training, the more the employer is paying two people to be non or minimally-productive. Adding employees can actually lower short-term productivity and add little to long-term productivity for an organization, but the costs will attract notice internally and may lead management falsely believe the problem is cost related. Read More


Algorithms for Hiring, Credit..What Next? Perhaps Caution Should be Exercised

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.

We are pushed from all sides to embrace advancing technology meant to impact every aspect of our lives. Peer pressure – from friends, family, colleagues, industry “experts” drive us to consider embracing “our future” – often explaining away the disruptions it causes to our present. Sometimes naïve, but always enthusiastic, media compete to be the first to break the news, bombard us with everything from subtle shaming to industry-driven pushes to accept and use technology – even if lacking thorough testing or proper consideration of all ramifications from its usage. If the technology causes damage, shoulders are shrugged and the horizon is scanned for the next.

Driven by massive amounts of marketing cash -often to create the illusion of trends when market acceptance is tepid – who is helped and who is hurt by the innovation is a distant afterthought. The damage can be done and those promoting the technology push to broaden its acceptance. If press coverage is too harsh when its promise comes up short and shareholder interest wanes, abandon it and move on to fabricate the next “trend.” 

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Take, for example, the recent examples of Apple and Goldman Sachs credit cards, which it appears  issued lower credit limits to spouses of husbands who shared the same credit score. “A tech entrepreneur, David Heinemeier Hansson, first raised the issue when he tweeted that the Apple Card’s algorithms discriminated against his wife, giving him 20 times the credit limit it had given to her.” His wife’s credit score was much better than his own. This, also, happened to the spouses of Apple cofounder Steve Wozniak and other prominent figures.


…the Goldman credit card story is “not the best example of this huge problem.”
Nick Thompson
Wired Editor-in-Chief


Some banking algorithms utilize around 400 attributes in its determination of creditworthiness. And that might be made up of many we wouldn’t expect, but we will never know since it is considered a “trade secret.” But, as in most cases of machine learning, a lot of trust and faith is afforded the technological advancement which is only rocked when something tragic, abnormal or, in this case anti-social and potentially illegal, is discovered. Read More 


Tips for Workforce Developers – Partnerships That Matter…and Last

by Dr. Dave Just, formally Dean of Corporate and Continuing Education at Community Colleges in MA, OH, PA, SC. Currently President of K&D Consulting

Having partnered with Proactive Technologies, Inc. on workforce development projects for the past 20 years, it gave me a chance to innovate and learn what works, what efforts are most appreciated by the employer, trainee and employee, and which projects utilized resources most efficiently and effectively. There are numerous resources available from many sources that can impact a trainee with varying effectiveness, but the secret is selecting those that are appropriate for the project outcome the employer expects.

As Dean of Corporate and Continuing Education at community and technical colleges in Massachusetts, Ohio, Pennsylvania and South Carolina, at the start of each assignment I had to first learn what resources our school had available for the sectors we were targeting, and how current and relevant the courses, materials and instructors were for the specific skills employers were seeking. To be honest, in some areas our products and services were weaker than expected, so the determination needed to be made whether we had the resources and will to upgrade what we had or develop what we needed. We also had to consider if it would be more economical to strategically partner with outside providers who always had the current technical expertise and already created solutions we could incorporate into our offerings.

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Too often there was internal resistance and a lack of understanding of how important being relevant was to workforce development. Many institutions grew complacent to change or were discouraged by shrinking budgets or misaligned priorities from innovation. Always feeling a sense of urgency to overcome the ubiquitous “skills gap” that cast a shadow on all education and workforce development efforts, there are some important steps that I developed for myself to help me better assess each employer’s need and provide solutions client employers appreciated. This is the reason most employers we worked with kept us engaged year after year. We earned, and maintained, their respect and gave them confidence in our solutions, which ensured our continued role in their business model. This provided a continued revenue stream for the school to continue, improve and expand those efforts.

1) Listen carefully to the employer’s description of the need – not every employer has a clear grasp of their need, but if you listen to their frustration in the context of your experience gained from concerns of other employers facing similar symptoms, you can help the employer discover the root cause. Then a solution that makes sense can be developed; Read More  


Economic Development Opportunities – An Important Incentive in Attracting Companies to Your Region

by Dean Prigelmeier, President of Proactive Technologies, Inc.

When organizations try to create new jobs in their area – working with companies that are considering moving to, expanding to or expanding within their areas – skilled labor availability for many regional economic development strategies may include an offering that consists of one part skills assessment, one part general skill classes and a sprinkling of worker tax credits or grants. That seems to be what most incentive packages include, but is that because: A) that is what the other offers look like; b) it has been like that for decades; C) it is assumed that is all that is available; or D) all of the above?

For over thirty years headlines sounded the alarm that those institutions that were training the workforce of tomorrow were not succeeding in their effort as discussed in, “An Anniversary That You Won’t Want to Celebrate: 30 Years Later and The Skill Gap Grows – Is it Finally Time to Rethink The Nation’s Approach?“). Many skilled workers that are available to work do not have the skills that employers need today. Not completely satisfied with their answer to the inevitable question regarding the region’s skilled labor availability and how workers with specific skill needs will be found or developed, some economic development organizations are exploring other options and opportunities.

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“Whether attracting new companies and helping them thrive and expand, or helping existing business to do the same, this approach is an important component of any economic development strategy.”


It is important to understand that the types of skills that employers are most concerned with – especially employer-specific task-based skills – most likely have not been in the local workforce, nor have any programs been available in local institutions to develop them, simply because these new jobs, with new skill requirements, have never been in the area. The types of skills needed for most modern manufacturing and advanced manufacturing have never been developed because the need was not present nor the data on these jobs available. Even if the need was present, by the time the skill is recognized, a program developed and a worker completed the learning, manufacturers either moved on or moved out. Read More


Proactive Technologies Announces Significant Turnkey Project Discount Program – October 15th – December 20th, 2019!

“No-Risk” Discount Pilot Program – Witness Approach for One of Your Specific Job Classifications Before You Decide to Expand
by Proactive Technologies, Inc. Staff
Due to the success of our last discount offers, and many requests from companies that could not act before the end of the last discount offer early this year, Proactive Technologies Inc. is once again offering a generous discount offer of up to 40% to employers from October 15th to December 20th, 2019!

This  accelerated transfer of expertise™ approach is a tremendous offer without the discount but with it, it can help any employer to:

1. quickly and completely train the skilled workers they need;
2. realize an increase in worker capacity, work quantity/quality and
compliance with quality programs such as ISO9001:2015, TS16949, AS9100D, NADCAP, etc., as well as engineering specifications and safety;
3. reduce the internal costs of training!

New-hires and incumbent workers are driven to full job mastery and higher levels of return on worker investment (ROWI). The task-based, structured on-the-job training infrastructure is perfect for apprenticeships; instead of marking the calendar for “time-in-job,” job-relevant tasks are mastered and documented.

As if anyone needs one more reason (i.e. in addition to live online presentations, onsite presentations) to decide whether to move forward with structured on-the-job training to boost their training strategy: Read More

Read the full December, 2019 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – November, 2019

Reluctant to Reshore Due to Apparent Shortage of Skilled Labor? Don’t Be

 by Dean Prigelmeier, President of Proactive Technologies, Inc.

These are uncertain times for some manufactures with supply chains that transcend borders to countries subject to punitive tariffs, and/or social, political and economic unrest. Knowing where to invest time and precious resources isn’t as clear as it was a couple of decades ago, yet that is the situation many are in.

We all remember how quickly companies relocated part (in some cases all) of their operations, and/or prodded their suppliers to do the same, to lower wage, lower regulation and lower property cost environments – regardless of the transport costs, and risks of regional instability and supply chain disruption. As those economies developed and the associated operational costs increased, those perceived savings continued to erode. And as regional instability rose, many employers started to strategize their next move.

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One over-hyped and inaccurate factor in the U.S. is the shortage of skilled labor, which some workers see as a veiled attempt to justify importing labor who will take the job for significantly less. There are plenty of skilled labor available who were displaced during the Crash of 2008, or recently displaced by the trade wars, and who had to change career course to feed their families. Many of these workers are still waiting, and could be quickly and easily “re-tooled” for today’s manufacturing jobs with a focused structured on-the-job training program. Some are kept from seeking out these opportunities by wages and benefits for the job they once had now offered at 50% – hardly enough to attract skilled candidates back- not to mention for retaining a “skilled worker.”

Some see this as a sort of hypocrisy; the publicized, frantic search for “skilled” and “talented” workers, while offering these skilled workers less for the job they once held with that employer or a similar employer in the industry. So, for now, many of those workers that are that skilled and talented abandoned the career of their choice for the career that pays the bills. Read More


Have You Captured The Expertise of Your Critical Hourly and Salary Positions?

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.

Starting in the late 1980’s, employers became increasingly concerned with succession planning; ensuring salary workers were being groomed to replace critical senior employees in the event of retirement or voluntary/involuntary separation. It was realized that the potential disruption – direct and the ripple effects – caused by an unplanned void in the leadership chain might be perceived as a threat to shareholder value. Shareholders, too, wanted assurances that maximizing a firm’s performance was not tied to one or two invaluable people.

Compounding the concern was the realization that the workforce was aging at all levels, and that retirements were a certainty. Prior to the Crash of 2008, employer’s concern over this was amplified by anecdotal reports from other employers already experiencing the impact. A movement toward a remedy began to take shape, and not just for high ranking salary positions, but technically critical salary positions and even hourly positions that with a loss of one or a few technical experts might disrupt operations and impair a firm’s viability.

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For decades prior to the Crash of 2008, Proactive Technologies, Inc. worked with a lot of employers by job/task analyzing their critical job classifications – initially hourly positions but a growing salary class of positions as well. This approach “captured the expertise” of the aging workers to use it to develop the tools which would allow the company to train nearly anyone with a sufficient core skill base, replicating experts as needed.

Then the Crash of 2008 happened and employers found themselves unexpectedly and unwillingly accelerating the loss of technical experts at all levels. For employers late to the game, there was no longer time to capture expertise; it had already left the building.

In a Plant Services 2019 Workforce Survey report, almost 50% of employers surveyed answered that knowledge capture/transfer was one of their “organization’s biggest workforce challenges” – a number rapidly growing. Read More

The US DOL Wants States To Expand Apprenticeships. Will, and Can, Community Colleges Support Truly Employer-Focused Apprenticeships?

Dr. Dave Just, formally Dean of Corporate and Continuing Education at Community Colleges in MA, OH, PA, SC. Currently President of K&D Consulting

In an article entitled, “A New Breed of Apprenticeships,” several community colleges were celebrated for their vision in expanding apprenticeship programs to non-traditional areas, in this case healthcare.

In reviewing the article’s “Five Key Elements” of an employer-based apprenticeship, I wonder if the understanding exists of what is most important to the employer. Something that isn’t “front-and-center” as an element is the need to ensure that the apprenticeship program, at a minimum, results in a worker who has mastered all of the tasks for the apprenticeship employer host’s job classification. Without that assurance, the employer will be underwhelmed, if not disappointed, and may disband the program leaving current apprentices without a program to finish and those who targeted the program without the special status they were expecting.

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The article’s author rightly pointed out that apprenticeships have been around for around 4,000 years. They were built around the job classification in the beginning because that is all that there was. There were no community college for core and industry-general skill development; just a subject matter expert transferring expertise to a fresh recruit. It was effective because training was one-on-one in relatively low- traffic work environments. Expertise, tribal knowledge, work wisdom and known safety rules were all transferred while transferring each task’s best practice, so there was no doubt how these components fit together.

This approach became more difficult to manage as enterprises grew in size, scope and complexity. For profit-motivated employers, a 10 or 15 year apprenticeship was unthinkable. Labor unions tried to focus training more into an 8 or 9 year apprenticeship, but it was still hard to administrate and non-union shops showed no interest at all.

In general, employers drifted father and farther from the concept of expert-to-novice expertise transfer, opting instead for the very informal, unstructured and occasional one-on-one prevalent in most firms. Never mind the obvious contradiction with other contemporary management strategies such as LEAN, Total Quality Management and Continuous Improvement applied to capital investments. Most employers seemed to settle on the “hope for the best” strategy when it came to human assets, hoping further that the local educational institutions would come up with a solution while they raced forward to be competitive – dragging this anchor behind them. Read More


Proactive Technologies Announces Significant Turnkey Project Discount Program – October 15th – December 20th, 2019!

“No-Risk” Discount Pilot Program – Witness Approach for One of Your Specific Job Classifications Before You Decide to Expand

by Proactive Technologies, Inc. Staff

Due to the success of our last discount offers, and many requests from companies that could not act before the end of the last discount offer early this year, Proactive Technologies Inc. is once again offering a generous discount offer of up to 40% to employers from October 15th to December 20th, 2019! The accelerated transfer of expertise™ approach is a tremendous offer without the discount but with it, it can help any employer to:

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quickly and completely train the skilled workers they need;

realize an increase in worker capacity, work quantity/quality and compliance with quality programs such as ISO9001:2015, TS16949, AS9100D, NADCAP, etc., as well as engineering specifications and safety;

reduce the internal costs of training;

New-hires and incumbent workers to full job mastery and higher levels of return on worker investment (ROWI).

The task-based, structured on-the-job training infrastructure is perfect for apprenticeships; instead of marking the calendar for “time-in-job,” job-relevant tasks are mastered and documented. As if anyone needs one more reason (i.e. in addition to live online presentations, onsite presentations) to decide whether to move forward with structured on-the-job training to boost their training strategy: Read More


Read the full November, 2019 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – October, 2019

Labor Costs Expected to Increase, So Will Challenges to Worker Development

by Dean Prigelmeier, President of Proactive Technologies, Inc.

In an article by David McCann of CFO.com entitled, “Labor Costs Will Skyrocket Over the Next Decade”, the author cited new research from consulting firm Korn Ferry  projecting new challenges for employers in the coming years. “Organizations around the world could add more than $2.5 trillion to their annual labor costs within 12 years as a result of the global shortage of highly skilled workers. The report follows up on the recruiting and workforce management firm’s forecast in May that the talent shortage could cost companies $8.5 trillion in unrealized annual revenue by 2030.

This is a rolling crisis that started several decades ago – the repercussions are just now being articulated in terms employers can relate. Employer’s awareness of the approaching crisis appeared for retiring baby-boomers and the anticipated loss of expertise and critically unique task-based skills mastered over decades of performance. Add to that the rise of millenials, the continual introduction and evolution of technology and the disruptive effects of the Crash of 2008. Now employers are finding themselves rebuilding their workforce, in many cases with tools and techniques that haven’t evolved all that much and still without really understanding the seriousness of the challenge, let alone the labor and opportunity costs to their operation.

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The report continues, “The crisis is not something that’s far off in the future. Even in 2020, the U.S. wage premium is expected to reach $296 billion. By 2025, the gap will total $400 billion, according to the report.” What can companies do to mitigate the trend and minimize the effect? “Employers will need to concentrate on reskilling lower-level workers,” Thompson (author of the report) notes. “That involves identifying those who are adaptable and flexible enough to be successful in the new world of work and putting in place robust training and workforce plans.” Read More


More Employers Finding Ways To Strategically Ensure Fair Pay

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.

In an article appearing in IndustryWeek entitled “Trying to Ensure Fair Pay, Employers Are Changing Policies,” it noted that according to a recent employer survey “2018 Getting Compensation Right,” “60% of U.S. employers are planning to take some action this year to prevent bias in hiring and pay decisions.” Further, 53% “are planning on or considering adding a recognition program.”

The report went on, “37% percent are planning on or considering changing criteria for salary increases. Among employers not redesigning their programs, most are making changes to the importance of factors used to set base pay increases.

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In short, the report led one to believe that employers overall wanted to make pay fairer, but one got the impression that there was no clear path. It is difficult in this environment to talk about raising workers wages without shareholders mounting a revolt. But with the reported shorted of skilled labor, the difficulty in training workers with a lean staff and no structure, strategy or record keeping, etc. an area of compromise has to be reached. If not, skilled workers will not apply, or stay, and the shareholder profits will definitely be affected. It is the “bullet that needs to be bit” to get the economy working like it did so well post World War II when everyone felt they had a chance at doing well for themselves and their family.

One easy-to-set-up, easy-to-implement, low investment/high return strategy for paying workers for the documented value the employee has accumulated has been discussed in previous Proactive Technologies Report articles, most recently “A Pay-for-Value Worker Development Program – Fair to Management and Workers, and Effective Too!”  and previously in “Pay-For-Value Employee Programs.”

Developing each worker should be a linear process in spite of inputs from all direction. Read More


Developing the Maintenance and Other Technically Skilled Workers That You Need; To Specification, With Minimal Investment

Dr. Dave Just, formally Dean of Corporate and Continuing Education at Community Colleges in MA, OH, PA, SC. Currently President of K&D Consulting  

In the March, 2016 Proactive Technologies Report article, “Grow Your Own Multi-Craft Maintenance Technicians – Using a ‘Systems Approach’ to Training” I described how Proactive Technologies, Inc. has often joined forces with universities, community colleges (many were schools for which I lead the customized training and workforce development departments) and other related technical instruction providers to setup and implement the “hybrid model” of worker development.  This approach has proven itself highly effective for technical job classifications such as Maintenance,Chemical Operators, Press Operator, Tool & Die, NC Machine Operator, Quality Control, Supervisor and others.

This “systems approach” to worker development is simple in its structure but includes metrics and quality control points to ensure that worker development outcomes are clearly defined, progress measured and reported monthly, and goals reached – no matter if the job changes or people change jobs. Although this approach can be used for any job classification in any setting, together we have applied this approach effectively for Maintenance and many other critical technical positions, as well as often neglected supervisor and first-line management positions, for many clients over the last 2 decades.

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The approach is unique in that it sets-up for its clients the task-based structured on-the-job training programs. There is no “cut and paste;” each job/task analysis is specific to that job classification, for that company, and incorporates already established process documents and specifications to ensure compliance with quality programs such as ISO/TS/AS and safety requirements.  Proactive Technologies provides the technical implementation support and accurately reports progress for each trainee’s individual pursuit of “Job Mastery” – allowing the business client to focus on its business while we ensure the employer gets the skilled staff they need, when they need them. As a bonus, incumbent workers are base-lined to the structured on-the-job training program requirements and a customized path is established to drive them, along with the new-hires, to full job mastery. Read More


Pre-Employment Physical Ability Tests Can be a Legal Liability If Not Done Right

by Jim Poole, President of Lifetime Learning, LLC

David Sparkman of EHS Today wrote in a July 20, 2018 article entitled “EEOC Cracks Down on Pre-Employment Physical Testing” that “If your company uses pre-employment physical stress tests for job applicants that result in the rejection of female applicants, you could be in a world of hurt if the Equal Employment Opportunity Commission (EEOC) finds out.” He described the story of Hirschbach Motor Lines, “which used a pre-employment back assessment to screen and reject applicants it believed would be unable to work as truck drivers. Applicants were tested for their ability to balance and stand on one leg, touch their toes while standing on one leg, and to crawl… The company eventually agreed to pay $3.2 million to a class of female applicants after the EEOC filed a lawsuit alleging the strength and fitness tests they took impacted women disparately. Earlier this year another case involving physical ability testing required by a police department resulted in a nearly $2.5 million settlement for female applicants.”

EEOC’s aggressive pursuit of cases demonstrates why it is important that employers understand the legal issues surrounding physical ability tests(PATs). Extreme care should be exercised when selecting and validating such tests. Sparkman quotes experienced lawyers representing clients in these types of cases, “’If a PAT has a disparate impact-for example, if women fail the PAT at a statistically significantly higher rate than men-an employer has the burden of demonstrating that use of the PAT is job-related and consistent with business necessity,’ explain attorneys Mallory Stumpf and Sarah Smith Kuehnel of the Ogletree Deakins law firm.”

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The EEOC announced last year in its Strategic Enforcement Plan (SEP) that for the next several years, it will continue to focus on class-based recruitment and hiring practices that discriminate. Read More


Explaining Your Process Training to Auditors, Prospects and Clients

by Proactive Technologies, Inc. Staff

For most organizations, the general notion is that training is going on in every corner of the organization, for every worker at any time of the day or night. One person is showing another person how to perform a process, operate a piece of equipment or software, fill out a form or, yes, make a copy using the new copy machine just installed. Have you ever walked by a copy machine and seen someone standing in front of it, staring at the control panel…then the sky as if seeking divine intervention.

When the resident expert masters a task and it becomes routine, there is a tendency for them to marginalize the task as so easy that the next trainee should learn it by osmosis. If not, maybe the new-hire “just doesn’t seem to want to learn.” Somehow, the organization may get by. In this case, like so many, it may sound like an insignificant example of training, but not to the person who needs the copy and who may be judged if a meeting is waiting for it.

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Same too are the more critical and complex tasks of the job, requiring compliance with so many factors such as engineering specifications, quality control requirements, safety requirements and company policies. Without a deliberate task-based training infrastructure in place, training might be ad hoc, informal, unstructured and rarely documented. Add to this the periodic worker cross-training that allows workers to train in, and master, tasks in multiple job areas and the amount of critical, but undocumented, training can be tremendous.

In the event of an audit by by an internal department, a certifying agency, a client or a prospective client, explaining how a worker is trained to master a task critical to a repeated high level of quality might be difficult to impossible. And answering how a worker, who is thought to have mastered a task, is updated when the process is improved, redesigned, affected by changes in technology, changeover of product line or part of an orchestrated improvement program might be even more difficult. Read More


Read the full October, 2019 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – September, 2019

How Much Would “Full Worker Capacity” Through Full Job Mastery Be Worth to Your Firm?

by Dean Prigelmeier, President of Proactive Technologies, Inc.

According to Ed Timmons, CEO of the National Association of Manufacturers, “ our labor costs in the U.S. are still 20% too high.” If he means that employers may be paying too much for unused or unusable worker capacity, and they should seek methods to develop it, I can agree with that. If he means employers should focus on spending enormous amounts on finding alternatives to labor, or randomly cutting workers, or asking workers to work for less wages and less benefits, I would say “hold on a minute.”

Given the growing discontent by workers who still haven’t recovered from the Crash of 2008 and are still trying to come back to the wage level they once had for the talents they possess as their employer and their shareholders built great profits, workers might want a seat at that discussion. Many families, today, are challenged by rising prices of nearly everything and stagnating or eroding wages. This preoccupation with driving down labor costs, while reporting to Wall Street record quarterly profits, may benefit shareholders in the short-run, but it is surely self-destructive and illusionary in the long-run. 

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As recently reported in Industry Week, a group of CEOs from major U.S. corporations, The Business Roundtable, released a statement saying that shareholder value is no longer its primary focus – shifting their practices to line up with their new definition of the “purpose of a corporation.” The new vision emphasizes investing in employees, supporting communities, dealing ethically with suppliers and providing customers with value. “The group signed the  Business Roundtable’s new Statement on the Purpose of a Corporation. It’s a sea change that moves companies away from the age-old philosophy that companies’ main goal is to look after shareholders.”


There is an effective, proven alternative to cutting labor costs through gutting organizational capacity. 


Focusing solely on shareholder profits has stunted the long-term viability of many a thriving organization. Under the cover of “making the firm more efficient,” when more profits could not be derived from expanding the market and market penetration, some investors forced cuts on firms that determined a firm’s long-term capability to compete, take advantage of emerging market opportunities, and adapt to changing markets and turbulent economic forces. Read More


Task-Specific Performance Reviews – An Accurate Metric for a Structured On-Job-Training Outcome

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.

We have all been through it. For decades this has been the topic of comedy shows and movies…the dreaded annual performance review. And when it is over, we might tell our confidants how non-reflective of reality and unfair it was. We calm down over the next few months and grow more anxious each month as we get closer to the next one thinking we are at its whim.

Why are they used? Are they supposed to be a good measure or performance or just a way to meet a human resources department obligation. More times than not they seem like a justification for not giving a wage increase than guidance on how an employee can continually improve and contribute to the organization.

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It is bewildering why management would spend the time and money, and risk employee morale time and again, on a employee measurement that isn’t.


Conceptually, the performance review has a purpose. It is to measure employee performance during a review period, identify areas of weakness and strength, and offer guidance on how an employee can improve on shortcomings and expand potential. But that is only possible if it is accurate to the job classification against which an individual is measured.

Several decades ago, performance review criteria became a template – one form fits all. In order for that to be possible, the metrics had to become more general, such as whether the individual “works well with others,” “completes projects on time,” “shows initiative.”  At best, these types of measures leave the reviewed wondering whose job performance is being discussed. At worst, these subjective measures leave a lot of latitude for the reviewer who sometimes deliberately or inadvertently punishes an otherwise good performing employee.

Studies have shown that performance reviewers rarely have a method to gather performance history for each employee throughout a review period, so they rely on their memory. Read More 


Classes Alone Will Not Close the “Skills Gap,” But Structured On-the-Job Training Can…Every Time!

by Proactive Technologies, Inc. Staff

Proactive Technologies. Inc. works with many employers, a large number of them manufacturers, to set up structured on-the-job training programs designed to their exact job classification(s), built to train incumbent and new-hire workers to “full job mastery” – still the most elusive goal most employers face and the key to” closing the “skills gap.” Under-capacity of workers is an enormous source of untapped value and unrealized return on worker investment. 

The accelerated transfer of expertise™ approach can help any employer quickly and completely train the skilled workers they need AND realize an increase in worker capacity, work quantity/quality and compliance (ISO/TS/AS, engineering specifications and safety) while reducing the internal costs of training. New-hires and incumbent workers are driven to full job mastery and higher levels of return on worker investment (ROWI). The task-based, structured on-the-job training infrastructure is perfect for apprenticeships; instead of marking the calendar for “time-in-job,” job-relevant tasks are mastered and documented. AND, unlike classroom or online training, the cost per trainee decreases with each added trainee once set up. 

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This approach makes a worker’s mastery of the job the focus, integrating into the company’s existing systems and standards by building structure around the loosely arranged worker development activities already in place. By structuring the unstructured worker training to make it work effectively and efficiently, this approach maximizes the use of resources already in place. Read More 


Supervisors and First Line Management Need Structured On-The-Job Training, Too

by Dean Prigelmeier, President of Proactive Technologies, Inc.

It seems every organization is scrambling to “lean” the operation these days. This implies producing the same amount of output, or more, with decreased amount of inputs by fine-tuning logistics, internal work flows and processes. Workers get moved around or out, and processes get reorganized and relocated.

Changes to the operation signal that the workers responsible to implement changes will need to know the new way of doing things. All affected workers, all shifts. Yet, often very little thought is given to the effectiveness of improvements if not everyone is one the same page.

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“One of the supervisors who participated in the program development said with clear certainty, ‘[I wish you had this when I started. When you hired me, I was just shown my desk and told to call HR or the manager if I had any questions. Yes, you had me attend some management classes on leadership, quality and striving for excellence, but I really couldn’t connect what was learned to my job since I had not yet learned what I was supposed to do and how to do that well. Until we completely analyzed all of the tasks that make up my job, I really had no idea which tasks I never have had a chance to learn or even knew I needed to learn them.’ “


What should be an obvious “must,” the notion that increasing worker capacity at all levels through task-based, deliberate, documented, measurable and verifiable structured on-the-job training is often usurped. It is replaced by a policy of hopefulness that workers will learn to perform the tasks of their job on their own or by osmosis or, even less effective and disappointing, attending a class here and there in expectation of closing the “skills gap.” I often discuss this in the context of production or service workers, but this extends to all levels of most organizations. The impact doesn’t go unnoticed by controllers and CEO’s under pressure to increase revenue or lower costs, but measures to correct this imbalance are seldom explored let alone utilized.Invariably, the most target-rich environment for harvesting huge savings and significantly increasing capacity is bypassed – either from a lack of understanding of what it takes to be a “subject matter expert” or entrenched neglect. Ignoring the need for structured on-the-job training is like investing in a state-of-the-art machine, then waiting for it to set-up and program itself. Even artificial intelligence needs someone to train it the first time to do the things expected in the proper way.

When one considers the serious collateral damage caused by underdeveloped or underutilized worker capacity (e.g. scrap, rework, loss of “tribal knowledge” when someone retires or moves on, loss of customer confidence, loss of employee confidence), red flags and alarms should be going off continuously, since all of these are present on a daily basis. Read More


Read the full September, 2019 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – August, 2019

Thirteen Good Reasons Why Structured On-The-Job Training Should be Part of Your Business Strategy

by Dean Prigelmeier, President of Proactive Technologies, Inc.

Many articles have appeared in the Proactive Technologies Report covering how Proactive Technologies’  PROTECH© System of managed human resource development can address many of the workforce development scenarios; from individualized, customized structured on-the-job training for a specific employer for specific job classification(s), to regional partnerships servicing multiple employers while partnering with regional educational institutions, private training providers, workforce development and economic development agencies to provide the related technical instruction. There are many winners with this approach, but none so important as the employer and the employee.

Several articles have appeared in the newsletter explaining how Proactive Technologies sets up for each client a unique, structured on-the-job training program, provides implementation support to ensure it is running effectively and provides documentation and monthly reporting to drive each employee’s progress toward full job mastery. The most recent article appearing in the February, 2017 issue entitled “Tips for Establishing Your Company’s Training Strategy – Practical, Measurable, Extremely Economical and Scalable“. While the article hints on some of the benefits to the employer-employee stakeholders, it might be more advantageous to focus on the benefits themselves rather than leave them nuanced. More can be found in other articles at the News and Publications page of the Proactive Technologies, Inc. website.

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There are many significant reasons that structured on-the-job training will help any employer really maximize the value of each worker employed with the company, improve operational efficiency and lower the risk of non-compliance (ISO/TS/AS, Safety Mandates, EEOC Mandates). These are not just buzzwords. Here are thirteen reasons (not in any order of importance, since some may be more important to different stakeholders) to consider. Read More 


The High Cost of Employee Turnover

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.

Most companies are dealing with uncomfortably high levels of turnover. When one separates out those employers that facilitated high turnovers to lower labor costs, there are many reasons for this. However, there is no denying the many costs associated with this that exist and the effects that often compound. These costs are often unknown and unmeasured, but all employers should keep an eye on this challenge and explore its full impact on the organization.

It seems counter-intuitive, but there are some who even recently promoted a business strategy that encouraged employee turnover. In a July 21, 2015 Forbes article entitled “Rethinking Employee Turnover,”  author Edward E. Lawler III, “Indeed, the turnover of some employees may end up saving an organization more money than it would cost to replace that employee. The obvious point is that not all turnover should be avoided-some should be sought.” The question is how to determine which ones to keep and which to encourage to leave. Without accurate measures of costs and values of a worker, good employees may be pushed out along with the “bad” and then the true costs of this action realized by the employer after it is too late.

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Last year, Christina Merhar of ZaneBenefits wrote in her blog entitled “Employee Retention – The Real Cost of Losing an Employee,”  “Happy employees help businesses thrive. Frequent voluntary turnover has a negative impact on employee morale, productivity, and company revenue. Recruiting and training a new employee requires staff time and money. According to the Bureau of Labor Statistics, turnover is highest in industries such as trade and utilities, construction, retail, customer service, hospitality, and service.”


“For the costs associated with the loss of 1 or 2 employees, the company can establish a holistic approach to worker selection, development and retention that will significantly lower both turnover rates and turnover costs, AND increase the value of all employees in that job classification.”


“Studies on the cost of employee turnover are all over the board. Some studies (such as SHRM) predict that every time a business replaces a salaried employee, it costs 6 to 9 months’ salary on average. For a manager making $40,000 a year, that’s $20,000 to $30,000 in recruiting and training expenses. Read More

Ensuring Worker Training Complies With ISO, AS, TS and Other Quality Mandates

Proactive Technologies, Inc. – Staff

Each of the quality programs typically modeled by manufacturers and service organizations is rooted in the American National Standards Institute(“ANSI”) program for quality assurance and control that served us up to the 1980’s. What each of the subsequent models tries to achieve is simplicity, standardization and verifiability. Audits are used to ensure these attributes are present.

When compliance with ANSI requirements became inconsistent among manufacturers, International Standards Organization (“ISO”) rewrote the standards to make them more compliable and encouraged an international acceptance of the standards. ISO models allow the host to be certified to a part/process, or to its people performing a process or as an overall facility producing and product(s)/service(s) for export. In any model from a worker’s contribution to the product or service, the fundamental standard is whether there are clear, compliable processes in place to control and measure a repetitive, consistent level of quality. The next standard is whether the host makes a documented effort to train/retrain workers to the processes (when changes occur). The third standard is whether the host has a records system that accurately tracks each worker’s progress toward “mastery” of the processes they are responsible to perform.

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ISO was the basis for first the QS model (automotive industry) that later became the TS16949 model. The TS and AS9100D (aerospace industry) models are similarly structured when it comes to training. During audits, the auditor looks for evidence that all three requirements are met, seeking a pattern of consistency in past records that the system appears to have the attributes that will lead to the same consistency going forward. Customers may use similar techniques to audit vendors and suppliers. The new National Aerospace and Defense Contractor Accreditation Program NADCAP (for prequalifying defense and commercial aerospace industry suppliers to a higher level of consistency) as well as other industry-specific standards developed or being developed have similar requirements for training. The reason that all of these models follow a quality standard for worker training is that it is measurable, unlike the old days when auditors encountered a drawer full of rosters or a partially current Excel spreadsheet – with no real evidence of  the connection between training, the work to be performed and the worker to perform it.

Taking a class on even closely related theory does not prove a worker can perform a process, but it might show the worker has the core knowledge and possibly lower-order skills to learn the unique processes to be performed, which is a good basis upon which to start task-based training. From a quality assurance perspective, documentation showing that process-based on-the-job training was recently delivered (and any process revisions were since conveyed) correlates to the decreased odds of non-conformance for that process. That is the reason quality assurance and control models seek that evidence in an audit. Read More 


From Innovation to Implementation – Success Depends on Preparedness of Those Executing

by Dean Prigelmeier. President of Proactive Technologies, Inc.

How often does a product or service go straight from research and development to service implementation or product production? A skilled, experienced worker may be able to overcome the ambiguity of this hand-off, but it seems there is, today, a shortage of skilled, experienced workers; baby boomers finally decided they can, or have to, retire, or some companies experience high turnover rates of replacements, or most employers say they lack of skilled candidates…or even someone skilled enough to train them.

There are many reasons that this loosely organized hand-off still exists:

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  • Perhaps from a sense of futility, with engineers seeming to have given up on the notion of training workers first to ensure immediate output quantity, quality and consistency;
  • Perhaps it is from knowing that the organization lacks a “system” in place to facilitate the transfer;
  • Perhaps it is from the belief that, especially in the early stages, the product or service may go through many changes before a coherent, repeatable process settles in and when it does the next product or service has been introduced;
  • Perhaps from a sense of superiority, that “I know how to do this [because I designed it] so everyone else should know what to do.”

For those who recognize the need for worker training and try to incorporate it manually while trying to keep up with engineering and technological innovations, it is common to find a training program released well into the last days of the life cycle – just in time to train workers for the things they made and serviced years before. Manual methods just do not keep up anymore, and they haven’t for the last 30 years. This doesn’t mean we should “leap-frog” to Artificial Intelligence or online training. The cost alone would dissuade anyone from utilizing it for this type of task-specific training, never mind the inappropriateness.

The most efficient and effective path to expediting a process from development of the process (including all pertinent aspects) to implementation is displayed. The task should be the central focus, with each stakeholder department contributing its input and metrics of accurate performance. Simply stated, the engineer can draft a process, then the other departments can add their components in order. Once all inputs are in, everyone can review and make changes based on each other’s observations and comments before a final document is released.

Too often departments are the focus of process development and implementation. Each department may contribute, but each department may also have its protocol, maybe even separate software or manual system, and each creating its own support document. A process making its way through this maze – back and forth with revisions and corrections – may take months. Making changes to it, for things learned in implementation, may not make it through the maze before the next request for change is submitted. Read More


Read the full August, 2019 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – July, 2019

Do U.S. Productivity Measures Measure Productivity?

by Dean Prigelmeier, President of Proactive Technologies, Inc.

A disturbing emerging trend, particularly in the last three decades, concerns the accuracy and quality of the economic statistics reported to the public. You probably have noticed lately that monthly statistics such as Gross Domestic Product, U.S. International Transactions, Unemployment and Job Creation have been issued with encouraging numbers one month only to be quietly revised downward a few months later. Businesses, consumers and policy makers can only implement effective strategies and correct potential dangerous courses if working with accurate data. One of those measures concerning worker relevance, development and effectiveness is “productivity.”

Think tanks have sprung up in Washington issuing reports and policy statements, and some put a cloak of perceived “credibility” around statements they release meant to support a policy direction or change its course – both to the benefit of a segment of subsidizing interests. Confusing us even more is the media’s propensity to report, as “news,” press releases emanating from these think tanks as if accurate, unbiased and inherently factual. Some may be, but when they are reported through the same careless filter, it throws them all into suspicion. The decrease in the number of accurate, readily available sources of news and facts can derail a life or business strategy.

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Take for example the daily explanations by news and business show anchors of why the stock market gyrates up or down, as if the collective market can always be explained simply as, “the stock market reacted to the federal reserve’s decision to not act,” or “the stock market tumbled because of the results of the presidential election” – only to recover fully the next day. Could another simple explanation be that the market moved one way or another because groups with large holdings decided to move them?


Unfortunately, however, figures on productivity in the United States do not help improve productivity in the United States.”
W. Edwards Deming


Another example is the preoccupation with what is referred to as “inflation,” which is based on the consumer price index (“CPI”). Read More


Decreasing the Cost of Turnover WHILE Increasing Worker Capacity, Work Quality and Compliance…With One Approach!

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.

One of the blowbacks of persistently low compensation (i.e. hourly wage rate plus benefits and opportunity for advancement) is the corresponding high rates of employee turnover. The cost of turnover these days can be burdensome for any organization, and most encountering it express that they would like to minimize it.

In a previous article entitled “The High Cost of Employee Turnover” the causes, the costs and solutions were discussed. A handy way to estimate the cost of turnover to the organization was expressed. The Aspen Institute released a “Cost of Turnover” estimate tool of their own to assign a dollar figure to a firm’s level of turnover, to understand to what degree it is currently impacting operations and to explain to how turnover presents barriers to expansion or market adjustments.

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Organizationally, things can be done to add window dressing that will attract candidates, but only a worker perceiving job stability and income sufficiency will stay away from actively seeking a better opportunity. Additional education and job-specific training opportunities may keep the worker from dwelling on the inadequate compensation for a while, but not adjusting compensation for the earned skills and value can fuel resentment.

One need only to revisit the Abraham Maslow’s Hierarchy of Needs of college lectures to understand the powerful influence income instability or insufficiency can have on an individual’s decision making. The Crash of 2008 drove most of the workforce to despair from higher tiers down to the fundamental first tier of Maslow’s pyramid. Jobs were lost, homes were lost, dignity and self-worth was stolen and to this day few have felt that they gained that back. Read More


The Skills Gap Solution; Employers Still Reluctant to Commit to Role Only They Can Fill  

by Staff

Education cannot, and should not be asked to, close the “skills gap” on their own. Employers have been concerned about the “skills gap” since the 1980’s, and the nature and location of the job has continued to change…at an accelerating rate. Employers have convinced themselves to wait for education to close the gap. In the meantime, tremendous resources continue  to be expended, but the gap continues to grow.

Educational institutions are not suited, staffed, funded and equipped to train workers for every job, for every employer, nor should they be. Educational institutions do their best work when they build the labor supply with strong, relevant basic and core skills (including STEM), and industry-general skills. Whether those efforts are worthwhile and the resources well-spent depend on two important things: 1) does an employer see value in hiring a graduate, and 2) is there a method in place to ensure those skills are integrated into mastery of the job-tasks the employer needs performed; the value that will influence the employer to retain them.

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Only employers can train the worker on tasks they need performed and that affect their bottom line. They have the need, the facilities, the most current equipment for their operation and the personnel with current expertise. Yet, in reality most employer’s methods amount to hardly more than pairing two people and hoping for the best. This is where the gap is most profound and continues to grow. Read More


Apprenticeships – An Alternative to the “400 Hours For Drill Press” Training Model

by Dean Prigelmeier, President of Proactive Technologies, Inc.

“Time-in-Job” Does Not Equal “Tasks Mastered.” It does not reveal much about the level, quality, relevancy and transferability of the “on-the-job experience.” It is akin to students tests being graded on how long they sat in the classroom. But yet this approach endures. Don’ get me wrong, it is better than no on-the-job training effort. However, I think we all agree that it leaves a lot of opportunity on the table.

An unfortunate hold-over from the traditional U.S. apprenticeship is the standard practice of defining the on-the-job training requirement in terms of “number of hours.” General work areas that are thought of as representative of the job are selected, a number of total hours for each area totaling the on-the-job training requirement are prescribed, and this with the required related technical instruction are registered.

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We all know that we have worked, or are now working, next to co-workers who have been in the job classification for many years but for one reason or another seemed to not be able to perform all of the required tasks of the job. Some are called “area specialists,” but may have specialized in only the tasks they like to perform. Some might not have had an opportunity to learn and master certain tasks. When they are asked to train the next worker, their scope is limited to the tasks for which they specialized, and the pattern continues when that new person becomes a trainer later on. When Proactive Technologies sets-up a structured, task-based on-the-job training program and assesses incumbent workers to discover any gaps that might exist so that the on-the-job training can close them, it is common to find some long-time workers in the job classification that may have only mastered 20 or 30% of the total tasks that make up the job classification.

So what does the number of hours spent in a job area tell a person about the skills attained by the apprentice? How is this seemingly subjective metric measured and how is it tracked? Does it matter? Read More


Read the full July, 2019 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – June, 2019

The US is Ranked 12th in Talent, Topped By Those Pesky Socialist Countries. What’s  Gone Wrong?

by Dean Prigelmeier, President of Proactive Technologies, Inc.

In an IndustryWeek article entitled, “Top 10 Countries For Talent,” it was reported that the IMB World Talent Ranking for 2018 placed the U.S. at 12th, behind many of those countries that are considered “socialist.” How can that be? Could it be that countries 1-11 found a better balance between a thriving model of capitalism and an economy that filters down to all?

It appears that these countries have deliberate strategies for sustained growth. They cultivate relationships with trading partners to “lift more boats” than just those at the top, and seem to do pretty well with their form of democracy. Their societies reflect this stability in the standards of living, mortality rates, health of their people, lower crime rates and lower numbers of suicides and mass incarceration.

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It wasn’t all that long ago that the United States set a high bar for educational attainment, upward mobility, access to healthcare and income security during working years and in retirement. But by most of these measures, the U.S. has continued to slide embarrassingly backward – sometimes as low with some measures to what the world considers a “developing country.” 

In 2018, the Organization for Economic Cooperation and Development announced the results of its 2015 rankings of 72 participating countries for the PISA (Programme for International Student Assessment ) test. The U.S. ranked as follows: Reading – 35th; Math – 24th; Science – 25th.

So it was really no surprise when it was revealed that the U.S. ranked 12th in talent in 2018. Read More


Thinking Past the Assessment – Unfinished Goals and Unrealized Expectations

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.

Literally speaking, an “assessment” is the process of measuring the value, quality and/or quantity of something. There are many types of assessments,  and methods for assessing. In theory, it is the process of evaluating one thing against a set of criteria to determine the match/mismatch.
There are assessments for risk, for taxes, vulnerability. There are psychological, health, and political assessments. There is a group of educational assessments that measure a variety of outcomes such as educational attainment – assessments of course content mastery, assessment of grade level attainment, assessments of Scholastic Aptitude Tests (“SAT”) that compare a student to their peers nationally and a variety of college readiness exams.

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“Determining that you, indeed, hired the right person for the job will not automatically ensure the person is successful in learning and mastering the job. The most important step in the employment process is seeing to it that the individual’s core knowledge, skills and abilities are applied in learning and mastering the tasks which they were hired to perform. That is where the money is made.” 


Educational assessments have been adapted for use in workforce development and employment, used to assess a prospective employee’s suitability for a job opening. They often measure more of what, if anything, a student learned and retained before graduating than how they match the employer’s actual job opening. Psychological assessments have been adapted to measure a prospective employee’s sociability to the workplace, morphing into a new category called “psychometric assessments.” Read More


Is the “Gainful Employment” Requirement For Education Realistic?

by Dr. Dave Just, formally Dean of Corporate and Continuing Education at Community Colleges in MA, OH, PA, SC. Currently President of K&D Consulting

In May, the U.S. Education Department sent out reminders to universities of the July 1 deadline to update their websites to include specific information to comply with U.S. Obama-era “gainful employment” regulations. A few weeks later it was revealed that the U.S. Department of Education is expected to publish, soon, its final regulation to eliminate the so-called gainful employment rule. However, it may not go away entirely. Proponents of the rule say Congress might later choose to alter the regulation in the reauthorization of the Higher Education Act (HEA), which would require the department to again address the issue. 

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Like a lot of policy discussions of today, the confusion over gainful employment – which ought to be a given – mistakenly focuses on the “supply-side” of the equation. No matter how much tinkering goes on with the rule, if employers and government policy fail to provide the quality jobs with quality compensation levels for which the focused college learning is directed, gainful employment may remain an unachievable goal.

In the 1990’s, computers and microprocessors began to appear in more and more aspects of a broader range of occupations. The alarms went off that this was going to dramatically and significantly alter the nature of work and the skills required in the future. Education at all levels began to reexamine its learning models and content in an, often, futile attempt to “keep up with change,” never mind get ahead of it.

“Futile” since, concurrent with this transformation, government was compounding this disruption with trade agreements and incentives to a smaller and smaller concentration of corporations that encouraged the exportation of the jobs that education programs were targeting. Additionally, employers imported workers to fill these positions (through visa programs) who would perform the same work at a fraction of the established compensation levels – many of whom attended the same U.S. education institutions.  Read More


Is an Apprenticeship Without Structured On-The-Job Training an Apprenticeship?

by Dean Prigelmeier, President of Proactive Technologies, Inc.

Career and vocation-focused training is a pivotal point in every current and future worker’s life. This world is overwhelmed by forces that make the effort more difficult for the education and training providers, more urgent and critical for the learner, more scrutinized by the employer and constantly measured against time; how long the training takes (which determines costs) and the relevance of the skills acquired to the targeted job which is always moving to the next level of technology. If the training is not “continuously improved” and maintained to be predominantly current and accurate, the graduate may find that jobs for which the new-found skills were targeted now marginally or, even worse, no longer exist.

In theory, apprenticeships offer a promising approach for traditional trades and crafts. As of 2008, more jobs can be registered as apprenticeships with new models accepted by the U.S. Department of Labor. If the program is based on a sound structure and methodology (one that can work for any type of job classification), an apprenticeship capstone – the job-related, employer-based training – would be maintained current and accurate for at least the employer apprenticeship host. Without this component, an apprenticeship experience may be as hollow as some of the for-profit educational chains which are often criticized for high costs and low placement rates.

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“No one would ride in a plane flown by a pilot with only classes and simulator time, have surgery by a surgeon that hasn’t yet operated on a live human, or receive a root canal from a dentist with no “live-patient” time. Certified mastery of the tasks that define each of these jobs is what makes the ‘license to practice’ credible. And there is a difference between ‘a pilot” and ‘the pilot.’ Having a pilot license certifies you to fly planes, not a specific plane; you still have to have training and be certified to apply your craft to flying that plane. With the hybrid approach to apprenticeships, both are accomplished at the same time.”


The term “apprenticeship” has taken on many new meanings in the rush to increase the number of apprentices in the United States. Some 2-year community college programs that have been around a while have been re-branded in an effort to give new life to the same programs of worker development. Some have been thrown together to position an organization for the anticipated flood of grant dollars to find apprentices. Many of these are less “employer-centric” and more “industry-friendly” in spirit. Yet, it is important to remember that the ultimate beneficiaries of an apprenticeship should be the apprentice, the employer, the community, the industry and then the workforce development community, in that order. This should always be the focus and priority. Read More


Read the full June, 2019 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – May, 2019

The Connection Between Worker Capacity, Organizational Capacity and Output

by Dean Prigelmeier, President of Proactive Technologies, Inc.

The term “capacity” has many meanings. The business dictionary defines capacity for different applications, but generally defines it as “specific ability of an entity (person or organization) or resource, measured in quantity and level of quality, over an extended period.” What is often missed is that each application measured for capacity is made up of important contributors that, too, have capacity.

For example, the capacity of a company can be stated as the output measured quarterly or annually, but attempts to improve it without considering the make-up of the people, the equipment, the leadership, the strategy and resources would be difficult. The output would be affected by: 1) the availability of resources; 2) the level of staffing; 3) the quality of the staffing; 4) the output attainable by the equipment in use; 4) the allocation of all resources; and many more factors. The level of improvement for overall company capacity possible is reliant on the level of control of the inputs in use.

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Thinking of a company as being made up of building blocks helps to visual this relationship. Fundamental to it all is the worker, and worker capacity. Worker capacity fits the definition above, but seldom do companies have a definition and control of a worker’s capacity. More often than not, companies view a workers contribution as placeholder for a position defined in terms of hours worked, dollars spent or an expected output based on the history of predecessors. 

But worker capacity is much more than that. It relates to the range of tasks the worker is expected to masterfully perform, on equipment and using tools provided, meeting all standards and specifications, and in a safe and risk-adverse manner. It is affected by internal factors such as the company’s strategy, policies, management technique, working environment, company culture and perception of fair compensation. It can be affected, as well, by the worker’s external influences such as well-being, well-being of family members, health, finances and any number of unexpected disruptors.

Fundamental to all of these factors are two specific factors: Read More


Are Advances in Technology Distracting, Rather Than Assisting, HR From the Fundamentals of Worker Selection and Development?

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.

Billions of investment dollars are driving the advancements in technology into every corner of our lives, including the selection and development of workers. Predictably, the emphasis often seems more on the technology and the money it can make for investors than the practicality for the end-user or those it effects.

It is not just the refrigerators that talk to your grocery store, or watches that talk to the phone in your pocket. Wall Street, with an accumulating mountain of cash, can drive any idea to fabricate a “trend” that often dissipates as quickly as it emerges, sometimes leaving disruption in the wake but yields a return for investors. For investors it is the means to an end. To many, it may negatively affect their life and their future.

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In the 1990’s, investors started to look at the National Security Agency’s and Central Intelligence Agency’s “key-word search” capabilities used to scan millions of documents from around the world for specific words and phrases to expand their intelligence gathering reach. They saw applications of this technology in the civilian world, including scanning the mounds of resumes and employment applications employers had to filter in order to find a few new-hires. On the surface, this seemed to be a godsend. 

Soon employers and employment candidates saw what the developers of this technology did not. The technology first had to count on employers having accurately designed job descriptions in consistent formats, using standardized terms, words and phrases to describe pre-hire knowledge, experience, skills and abilities of interest. The fact was reality couldn’t have been farther from this, with job descriptions written 50 years prior, written precisely for someone the employer wanted to hire (not so reflective of the actual job requirements), or cut & pasted from a handy library resource. 

Next, this technology had to rely the applicant knowing the right words and phrases to describe their own pre-hire knowledge, experience, skills and abilities of interest to the employer for the algorithm to recognize a closeness or match. In truth, most candidates even knew less about the difference between a skill and ability, knowledge and a trait, having “experience with” versus being “acquainted with,” or being “fluent” in a topic or having a passing knowledge. Read More


The Key To Effective Maintenance Training: The Right Blend of Structured On-The-Job Training and Related Technical Instruction


by Dr. Dave Just, formally Dean of Corporate and Continuing Education at Community Colleges in MA, OH, PA, SC. Currently President of K&D Consulting

I spent a lot of my career as Dean of Corporate and Continuing Education at community and technical colleges, in several states. Where we could, we tried hard to provide the best core skills development delivery for technical job classifications the employers in our community requested. We often did this working off the limited, and often suspect, job information the employer could provide to us.

Often we were up against budgetary constraints that limited our efforts to customize programs and keep the programs up to date when the instructor was willing to maintain the relevance of the program. If that wasn’t enough, school leadership often showed ambivalence toward adult and career education due in part to the fact that its demand was driven by gyrations in the economy. Furthermore, the institution was built upon, more familiar with and understood better credit courses for the more stable subjects such as math, science, literature, history and the social sciences.

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We tried a lot of innovative programs for employers in the community within the constraints mentioned, but if I was to be honest we rarely kept up. What we thought we knew of the targeted job classifications and their requirements, and upon which our programs were built and measured, seemed to become increasingly misaligned within just a few years. Not only was advancing technology putting pressure on the content of our learning materials and program design – a constant push toward obsolescence – the employers were continually rethinking the design of their job classifications to meet their business goals and budgets. We were finding less and less similarity in job classifications between employers, by job title and job content.

Inevitably, and not from lack of effort or desire, it was difficult to keep technical curriculum current to within 5-10 years. The “Maintenance” job classification was a perfect example and could be incredibly different from company to company. Read More


Enterprise Expansion/Contraction and Worker Development Standardization

by Dean Prigelmeier, President of Proactive Technologies, Inc.

One challenge faced when expanding, contracting or acquiring an enterprise is adjusting the scale of the workforce development strategy(ies) that already exist(s) to the increase/decrease in the number of workers while maintaining a consistent ratio of output, quality yield, safe performance and process compliance. Contrary to an accountant’s perspective on staffing level adjustment, there should be serious consideration given to the range and depth of each worker’s acquired skills; an “inventory” of each employee prior to the official act of expanding or contracting. We take a physical inventory of product, equipment, parts, etc. to assess value, so why would we treat a human asset any different?

Obviously an expansion strategy is different than a contraction strategy, but when it comes to determining the value of a worker it is similar for both strategies. How an organization addresses the development, measurement and maintenance of that value may differ widely. Let’s look at both scenarios.

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For companies expanding, if a sound structured on-the-job training infrastructure is in place it is simply a matter of scaling. More work means more employees that have to be trained before adding value to the operation. Sometimes expansion includes a segway from straight-line scaling, such as new products and services requiring new equipment, which in turns requires new/improved core skills before structured, task-based on-the-job training can be implemented to build upon incumbent worker skill sets. A solid structured on-the-job training infrastructure can easily adapt to new work, new tasks, new technologies and new trainees.

For companies contracting, one would think this would just be scaling but in a negative direction. It usually ends up more complicated than that when work for three different areas are consolidated on top of the work performed by the workers in the fourth area. If left alone this will produce an obvious bottleneck to say the least. With consolidation of the jobs, and therefore the consolidation of the tasks required of workers in each, intuitively it would stand that recipients of these tasks should be trained on the best practice of these new processes and necessary compliance. Otherwise contraction of an enterprise will continue as overall capacity dwindles and decreasing output results.

In a third scenario, when a company acquires another site or other sites, the acquiring enterprise usually brings in an expert who can unify HR and HRD strategies and already knows how to analyze what is needed. Read More


Read the full May, 2019 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

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Proactive Technologies Report – April, 2019

More Education Won’t Fix Flat or Declining Wages, But Appropriate Compensation and Stable Job Markets Can Make College Worth It


by Dean Prigelmeier, President of Proactive Technologies, Inc.

Having several degrees myself, I can say that I am a strong believer in higher education. I sometimes take issue with the quality and relevancy of courses or degree programs, but I would always encourage an individual to consider the value of acquired knowledge to their life plans and the additional doors it may open.I say this even though many of us who have achieved a higher degree silently questioned how much of their degree really mattered, or how much was forgotten for lack of application when an opportunity to apply it came along too late.

All said, two major trends influence my need to add a caveat to my encouragement to pursue higher education. First, be aware of the endless increases to the cost of higher education and, second, be cognizant of the instability of target job classifications and careers that not only renders a two or four-year degree irrelevant but, today, may leave the graduate empty handed and swamped with student loan debt. Even if the graduate is able to find a job it their expected field, the shock of unexpectedly low and flat wages may harness them to an unfulfilling job for life and sliding backward with all-consuming debt.

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According to the Huffington Post, the cost of a college degree in the United States has increased “12 fold” over the past 30 years, far outpacing the price inflation of consumer goods, medical expenses and food. Referencing a Bloomberg study, college tuition and fees have increased 1,120 percent since records began in 1978. Using a chart to explain its findings, Bloomberg reports that the rate of increase in college costs has been “four times faster than the increase in the consumer price index.” It also notes that “medical expenses have climbed 601 percent, while the price of food has increased 244 percent over the same period.” Additionally, according to the National Center for Education Statistics, since 2013 the tuition costs continued on its upward path. 

While education costs have skyrocketed and with student loan debt reaching $1.5 trillion, wages for graduates have continued to stay flat or decline. While it is still true that advanced degrees have a tendency of leading to higher starting wages and higher wage caps for the field, the number of fields this still holds true for are dwindling as these jobs are redefined, relocated or staffed with foreign workers invited to work for less. This makes working out of student loan debt slow, laborious in itself and often impossible. Read More


Your “Resident Expert” May Not Be an Expert Trainer, But Easily Could Be

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.

Just because a worker is informally recognized as a “star performer,” it doesn’t necessarily follow that they can be an effective trainer. Employers like to think it is as easy as that, but seldom does it turn out to be the case. However, with a little structure, some tools and a little guidance these resident experts can, and often do, become expert trainers.

If one thinks about how an expert is measured and recognized, it is usually by subjective, mostly anecdotal measures. The worker performs job-related tasks quickly, consistently and completely. This implies few mistakes, performance that is mostly within specifications and standards of performance, and no one can remember anything rejected or returned as scrap or rework.

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Thinking it through a little further, one might struggle to explain how the expert performer developed these traits. Someone showed them how to perform a task, and repetitive performance developed new, retained skills. They are now operating as a “robot” while performing a task, seldom thinking about the subtleties and nuances of each task (filed in memory long ago), which makes them fast, consistent workers – something the employer can notice an appreciate.

But if we ask “who trained this expert,” “how was he or she trained,” or “what specifications and standards were emphasized,” we come up empty. By just playing the role of a trainee, and allowing one of these experts to train you on a task, will reveal a lot as to what the new-hire or cross-trainee can expect. If we compare this expert’s task performance to other peer experts, we probably will notice slight differences in performance between them, which means workers that each trained may be trained differently on the same task. Sometimes these differences can be subtle and of no consequence, sometimes they become a point of contention, lead to confusion and/or unsafe and incorrect task performance. 

Every work environment is less than ideal for learning. Production pressures, personality clashes, learning style and teaching style differences, and departmental boundary incursions do not make it easy for a trainer to train or a trainee to learn without structure and guidance. If any of our experts train the next wave of new-hires or cross-trainees without structure, tools and standards – the building blocks of “best practice” performance – some of the expertise might not transfer and the differences between them become more obvious with each wave. Read More


Put Yourself in a Trainee’s Shoes

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.

It is fun to watch a popular TV show on CBS called “Undercover Boss,” reruns and all. Watching a CEO or executive of a major corporation slip into disguise and enter the world of their workers is interesting and entertaining. Sometimes they find the organization needs a little “tweaking,” and sometimes it needs major rethinking.

The entertainment value, I suppose, comes from watching these individuals being tossed into a job classification – alien to most of them – and, while cameras are rolling, receiving a crash coarse in performing various job tasks. Some are performed close to the customer. Not only do leaders get a rare look at what it is like at the lower rungs of the organization, in some cases they get a look at the sub-par performance most of their customers experience and how tenuous the corporation’s existence is – sustained only by the initiative a few loyal, but mostly self-interested, employees who try to make up for the corporation’s short-comings as if their job and future depend on it…which they do. If the company fails, they lose their job, plain and simple. Some put up with the company’s shortcomings in pursuit of the next opportunity.

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It is interesting to see CEO’s marvel at how difficult it is to learn the job tasks they previously thought were inconsequential and not worthy of attention. Previously known only as a word on a report, the fact that how the tasks are performed by these neglected employees are the reason the corporation exists goes unnoticed and unappreciated. Some look like episodes of the popular television shows of the 50’s and 60’s, “I Love Lucy.”

A typical Undercover Boss episode might display: Read More


Worker Capacity; Malperformance Cause-Effect

by Dean Prigelmeier, President of Proactive Technologies, Inc.

How often do we stop and ask ourselves why a worker is malperforming,under-performing or over-achieving? My guess is far too infrequently. Perhaps it is because of the hectic world we live in, with little time to study things deeper or explore an event closer. Perhaps because some of us feel helpless to do anything to correct it or exploit it (in the case of the over-performer) so we leave it alone. Perhaps the internal experts we rely on for answers lack the proper training themselves (in training program development, implementation, performance measurement) to be helpful.However, so much of what separates a high performing company from a mediocre or failing company depends on the collective effectiveness of the workforce. And the underlying desire to correct bad task performance, and proactively develop and maintain good task performance to replicate star performers, seems common, logical and ubiquitous.

Generally speaking, when we troubleshoot an error in performance, we would like to get to the cause, such as “operator error,” “equipment malfunction,” or “flawed material.” But this is more like isolating the area in which the error happened. We can troubleshoot a machine or send material to the lab for testing, but often the analytical “tools” to dive deeper into the human factor are lacking or inadequate, and the will of management to devote the time soft. The notion of worker “capacity” is a very useful tool that can help a company be proactive in preventing most of the common employee-related errors.

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According to the Business Dictionary, “capacity” (in a manufacturing sense) is defined as, “Highest sustainable output rate (maximum number of units per month, quarter, or year) that can be achieved with current resources, maintenance strategies, product specifications, etc.” This is fairly easy to relate to a piece of machinery, a department, or a company. But when applied to a single worker, some loose variables that apply broadly need to be tightened to be useful.

There are several ways a worker can learn to perform. Read More

Read the full April, 2019 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – March, 2019

Eight Scenarios That Would Make You Wish You Had a Structured OJT System

by Dean Prigelmeier, President of Proactive Technologies, Inc.

I think one can confidently say that most employer’s focus on training the workers they need – to perform the tasks they were meant to perform – has become detrimentally blurry, counterproductive and often non-existent. There are many reasons for that – some legitimate. But without a deliberate, measurable strategy for quickly driving each worker to mastery of the entire job classification, an employer’s labor costs (not just wages, but opportunity costs and undermined return on worker investment as well) can be substantial and act as a drag on an organization’s performance.

Many employers are still waiting for the educational institutions to solve the problem. After all, look at all of the money spent on education directed at “training the workers of tomorrow.” Yet a lot of the institutional strategies appear to include repackaged tools from the past…and not the ones far enough past that seemed to work. For example, the recent comments made by education insiders saying we should have kept the  high school vocational programs that were relatively effective until the late 1970’s in place. These were phased out when the push to prepare students for college took priority. Now, there is a push for community colleges to “pump out” more apprentices which, if done only to meet numbers but not emphasizing quality of the general training, could be another waste of scarce resources of time, money and opportunity for the trainee, the employer and communities. Another decade lost.

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Still, no matter how well or how poorly institutions prepare the workforce for employers, the employer cannot deny their responsibility to continue the training process and train the worker for the organization’s specific use. The degree to which they take this responsibility seriously will determine the success of the institution’s efforts to prepare workers, how much value the worker adds to the operation, and how well the operation performs in the market. Any apprenticeship that lacks an aggressive structured on-the-job training program cannot be the robust experience it is meant to be. By definition, an apprenticeship without structured on-the-job training really isn’t an apprenticeship. 

But the success/failure doesn’t stop there. A successfully and fully trained (to the tasks required) staff prepares, and keeps, the organization prepared to seize opportunities, adjust to disrupters and weather unforeseen forces. Failure at preparing and maintaining each worker’s job mastery, as part of system, can exacerbate an organization’s challenges and, potentially, lead to failure or irrelevance of the organization. Read More


Employers Say They Struggle With a “Skills Shortage,” Yet They Cut the Training Budget. What Gives?

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.

Everywhere you read these days, you find commentary on the “skills gap” that employers seem to face when trying to find the workers they need for their critical job classifications. Either there is a skills gap or there isn’t, and more and more economists are challenging that premise. Some, like Nobel prize winning economist Paul Krugman, say that if there is such a skills gap creating a shortage of skilled labor, then wages should be skyrocketing for those positions in a capitalistic, free market model.

Some point to the exploitation of loop-holes in the U.S. H-1B visa program, recently highlighted in a  CBS 60 Minutes episode entitled “You’re Fired” that allows employers to replace long-time, experienced employees with lower-wage temporary workers (with no benefits) from countries such as India – even requiring the laid off worker to train their replacement or forego severance pay.

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Yet other companies, genuinely experiencing a shortage of skilled workers in their region, seem to either accept the skills gap theory as the norm or have made assumptions that the right skilled workers already came through the front door. Some surprise everyone by redirecting training dollars that should be used to make sure each employee can perform the tasks for which they were hired to programs that are meant to improve performance – skipping the obvious. Trying to improve the performance of employees before being certain they can perform each task exactly seems incredibly counter-intuitive. Focusing dollars on LEAN, Kaisan, Six Sigma, etc. before being certain that employees have mastered each required task may be not only be a waste of money but probably will need to be repeated if the employees finally do master each task, since by then they will have forgotten any improvement techniques or how to apply them to the processes they are performing.

Some wonder why companies have not added to, or are even cutting, their training budgets in response to the challenge. Many of these companies seem to be forgoing structured on-the-job training that only they can deliver, hoping the local educational system, with all they federal funding they have received, will somehow wave a wand and all the skilled labor needed will appear. In a January, 2017 issue of the Proactive Technologies Report entitled “An Anniversary That You Won’t Want to Celebrate: 30 Years Later and The Skill Gap Grows – Is it Finally Time to Rethink The Nation’s Approach?” the point was made that employers having been waiting on solutions from other than their own operation for decades, but to no avail.

It is also significant to note that the U.S. is currently in a new presidential administration that seems to be set on cutting the funding for many of the Departments of Education and Labor workforce training programs these employers have come to rely upon. Read More


Some Community Colleges Moving Back Toward 70’s Approach to Vocational Programs; Why Did it Take So Long?

by Dr. Dave Just, formally Dean of Corporate and Continuing Education at Community Colleges in MA, OH, PA, SC. Currently President of K&D Consulting

In a recent article in the Community College Daily News entitled, “A Shift Back to Trades,” , which is an excerpt from an article by Matt Krupnick entitled, “After Decades of Pushing Bachelor’s Degrees, U.S. Needs Mores Trades People,” it appears that many in institutions of higher learning are accepting the realization that not everyone is suited for college or a career requiring 4-year, or more, college degrees. Some people learn better, faster and become more productive from a program focused on training rather than the conveyance of knowledge.

Societies have always had a natural division of labor, represented at one end of the spectrum by those who predominantly work with their hands (e.g. craftsman, builders, fixers) and those who primarily work with their accumulated knowledge (e.g. managers, lawyers, teachers). Closer to the center of the spectrum, some of these types of labor overlap, requiring the application of knowledge in practical uses, such as doctors, accountants, software programmers. Traditionally, careers in the latter required a 4 -year education or more and experience in the field since the positions were heavy on knowledge requirements and industry-general standardized practices.

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At the other end of the spectrum, training is focused on tasks routinely required of the worker – this becomes the focus of mastery of specific tasks of the job area. This is what an employer values and which make workers valuable. Knowledge conveyed at the point of utilizing it in the task, coupled with the convergence of core skills and core abilities, followed by repetitive practice of precise procedural steps develops trade-specific, higher-order skills. These skills yield a meaningful unit of work that is marketable to an employer in the industry. While one can say that occupations at the other end of the spectrum perform units of work as well, the type of work performed is more “situational” and less repetitive the higher up the organizational chart.

Leading up to the 1970’s, this was understood. In fact, many high schools around the country had very effective “vocational” programs, in many cases as good and relevant as the local community colleges. Read More 


Can’t Find The Right Workers? Why Not Train Workers To Your Own To Specification?

by Dean Prigelmeier, President of Proactive Technologies, Inc.

According to a recent report by Career Builder.com, more than half of the employers surveyed could not find qualified candidates: 71% – Information-Technology specialists, 70% – Engineers, 66% – Managers, 56% – Healthcare and other specialists, 52% – Financial Operations personnel. According to the National Federation of Independent Businesses, nearly half of small and mid-size employers said they can find few or no “qualified applicants” for recent openings. And anecdotal evidence from manufacturing firms echoes the same challenge with specialty manufacturing jobs such as maintenance, NC machining and technical support positions. This, in large part, can be attributed to the upheaval caused by the Great Crash of 2008 and the following disruption of several million careers. Sidelined workers saw the erosion of their skill bases while waiting years for an economic recovery that, for many, has not reached them yet.

However, many or most of these workers can be “reskilled” or “upskilled” for the current workforce. The solution lies not in waiting for the labor market to magically produce the needed qualified candidates, but rather in each company investing a little to build their own internal system of structured on-the job training. With such an infrastructure, any candidate with strong core skills can be trained quickly and accurately to any employer’s specifications. Furthermore, a strong training infrastructure has factored into it methods of acceptable basic core skill remediation when the benefit outweighs the cost.

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No matter how you examine it, an employer is responsible for training workers to perform the essential and unique tasks of the job for which they were hired. It is not economically feasible or practical for education systems to focus this sharply. Waiting for them to do so or allowing it to happen by osmosis is risky and costly for the employer, since every hour that passes is one more hour of wage for unproductive output. Add to that the hourly wage rate of the informal on-the-job training mentor/trainer efforts multiplied by the number of trainees and this becomes a substantial cost that should attract any manager’s attention. Read More 


Read the full March, 2019 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.

Posted in News