2014 ANNUAL REPORT EDUCATING THE ENABLED PROFESSIONAL

Transcription

1 2014 ANNUAL REPORT EDUCATING THE ENABLED PROFESSIONAL

2 BHEF IS EXPERT AT SEEDING AND NURTURING COLLABORATIONS AMONG HIGHER EDUCATION INSTITUTIONS, GOVERNMENT AGENCIES, AND INDUSTRY. 3 s Message 4 Executive Summary 7 Major Efforts 14 Thought Leadership 17 Looking Forward 18 Financials 20 Membership 22 Chairs of the Business-Higher Education Forum,

3 BHEF 2014 CHIEF EXECUTIVE OFFICER S MESSAGE DEAR COLLEAGUES, In 2014, the Business-Higher Education Forum (BHEF) advanced its work on multiple fronts to create partnerships between business and higher education that align undergraduate education with high-skill, high-demand workforce needs. BHEF and its members brokered groundbreaking initiatives in new fields, including cybersecurity, data science, financial services, and media engineering, which fostered new collaborations and attracted significant new grant funding from public and private sources. Through its National Higher Education and Workforce Initiative (HEWI) and strategic engagement model, BHEF continues to catalyze powerful business and higher education collaborations. BHEF helps its members create undergraduate programs in emerging fields that integrate competency-building workplace experiences to further prepare students for successful careers. BHEF validated and expanded its work through multiple grants in The Bill & Melinda Gates Foundation provided a planning grant to develop a business plan to offer industry-recognized cybersecurity credentials to students pursuing postsecondary degrees. With a grant from the Office of Naval Research, BHEF expanded the Maryland cybersecurity initiative throughout the Metropolitan D.C. region and Tidewater, Virginia. The National Science Foundation provided significant resources to build the multi-campus Undergraduate STEM Interventions with Industry consortium (USI 2 ), a part of HEWI, to address the unique challenges that community college students face as they pursue undergraduate degrees in STEM (science, technology, engineering, and math). These resources fund BHEF s cyber expansion in Massachusetts, among other work. These successes would not have been possible without our members, who continue to provide wise counsel and lead by example. We are grateful to Barbara R. Snyder, president, Case Western Reserve University, and Roger W. Ferguson, Jr., president and CEO, TIAA-CREF, and our executive committee for their enduring support and leadership. We also thank our funders for their generous support, including the Bill & Melinda Gates Foundation, the Alfred P. Sloan Foundation, the National Science Foundation, the William and Flora Hewlett Foundation, Accenture, and the Office of Naval Research, among others. Action is the core of BHEF s mission. BHEF leads the national response to workforce needs by targeting emerging fields; catalyzing ever-broadening collaborations; and leveraging the recognition and support of its business and academic members, government agencies, and private foundations. I invite you to join BHEF as it cultivates talent through exciting new undergraduate pathways to develop enabled professionals who will secure America s future. Regards, Brian K. Fitzgerald, Ed.D. Business-Higher Education Forum HEWI s entrance into new fields strengthened partnerships with leading national and regional industry organizations focused on economic development. The Business Roundtable joined BHEF to launch the Financial Services Industry Workforce Project in New York City. With the Association of Public and Land-grant Universities, BHEF strives to broaden its data science and cybersecurity efforts across the country. Lastly, BHEF is a principal partner with the Aerospace Industries Association and the National Defense Industrial Association as they focus on cybersecurity workforce needs BHEF ANNUAL REPORT CHIEF EXECUTIVE OFFICER S MESSAGE

4 BHEF 2014 EXECUTIVE SUMMARY The rapid pace of innovation is reshaping the American economy and the ways in which business and higher education must engage. BHEF created its National Higher Education and Workforce Initiative (HEWI) to develop solutions to the problems facing our nation s innovation economy, particularly workforce misalignment. Through BHEF s strategic engagement model, its members develop, and help students succeed in, interdisciplinary undergraduate pathways that lead to promising careers for enabled professionals individuals who are proficient in the application of cybersecurity and data analytics tools, for example, and have deep knowledge of finance, marketing, and communications, to name a few disciplines. BHEF conducts extensive market research on not only demand for such professionals across functions within organizations, but also the skills, degrees, and experience valued by employers. This research found that demand is highest for enabled professionals in fields such as cybersecurity, data science and analytics, materials science, and energy sustainability. The research also uncovered two critical insights: (1) demand is greater for individuals who hold baccalaureate rather than graduate degrees and (2) existing undergraduate programs in emerging fields are inadequate to meet demand across public, private, and nonprofit sectors. BHEF s members are uniquely positioned to collaborate and create new programs and pathways in emerging fields to meet this demand. These programs employ high-impact practices, which help all students, particularly minority and low-income students, to persist, graduate, and enter the workforce prepared to succeed in high-performing organizations. Market tests validate HEWI s rigorous methodology and position BHEF to make significant progress. BHEF members know that this rapid pace hinges on commitment, expertise, and investment of resources by motivated stakeholders, and are encouraged as HEWI expands through national partnerships in other regions of the country. CYBERSECURITY BHEF s activities in cybersecurity began in 2012 when it brought together members Northrop Grumman Corporation and the University System of Maryland (USM) to create the Advanced Cybersecurity Experience for Students (ACES). ACES is the cornerstone of the BHEF-USM Cybersecurity Network, which pairs USM campuses with business partners to create undergraduate programs and pathways in cyber. The Office of Naval Research (ONR) noted BHEF s work in Maryland and underwrote BHEF s U.S. STEM Undergraduate Education Model, which drives not only national policy and practice, but also U.S. Navy efforts to strengthen its civilian talent pipeline. In 2014, ONR increased its funding to support BHEF efforts throughout the greater Washington, D.C., area and Virginia. As part of this work, over the next 3 years, BHEF will lead a consortium as it develops cyber competency maps, multiple academic and career pathways, and new undergraduate cyber programs. BHEF secured a significant grant from the National Science Foundation (NSF) in 2014 to launch the Undergraduate STEM Interventions with Industry consortium (USI 2 ), a group of BHEF member-led sites that will engage business and apply combinations of high-impact practices to increase STEM student persistence and completion. Central to this work is student transfer from 2- to 4-year institutions. USI 2 could significantly increase diversity in undergraduate STEM baccalaureate achievement. BHEF s USI 2 sites focus on high-skill, high-demand fields, such as cybersecurity and data science, which can be applied to a variety of industry sectors. DATA SCIENCE After the successes of the BHEF-USM cybersecurity network, Case Western Reserve University (CWRU) and BHEF Chair Barbara Snyder asked BHEF to help CWRU faculty develop an undergraduate program in data science. BHEF completed a comprehensive peer review; convened nearly three dozen companies from various industry sectors to work with CWRU faculty; and facilitated the creation of the first-of-its-kind undergraduate major in data science and analytics and a minor in applied data science. BHEF insights informed Drake University as it established its data science programs. In addition, BHEF member The Ohio State University launched a new interdisciplinary data analytics major, which is jointly administered by the Department of Computer Science and Engineering and the Department of Statistics and was developed by the Colleges of Arts and Sciences, Engineering, and Medicine and the Fisher College of Business BHEF ANNUAL REPORT EXECUTIVE SUMMARY

5 FINANCIAL SERVICES INDUSTRY WORKFORCE PROJECT: MEETING DEMAND FOR DIVERSITY In the past 10 years 141,000 WOMEN LEFT the financial services industry In the same period 389,000 MEN JOINED the finance services industry This trend runs counter to the 4.1% OVERALL GROWTH pattern of women in the workforce In 2014, through a bridge grant from the Alfred P. Sloan Foundation, BHEF explored the opportunity to develop new undergraduate pathways in data science in the New York City region. As part of this effort, BHEF established a data science task force, which is charged with creating new undergraduate learning opportunities in data science and analytics that align with workforce needs from multiple sectors. With the Business Roundtable, BHEF launched its Financial Services Industry Workforce Project to address the need for a more diverse workforce with an expanded set of skills. The effort uses research and consults with industry leaders, financial services organizations, and higher education institutions to (1) prepare a diverse workforce well-trained in data science and analytics; (2) create opportunities for low-income students, minorities, and women; and (3) incorporate 21st-century competencies such as critical thinking, problem solving, analytical reasoning, communication, and working in multicultural teams into the undergraduate experience. THOUGHT LEADERSHIP BHEF members and staff were asked to provide insight and drive the narrative on corporate and higher education collaboration throughout Members shared the dais at high-profile conferences, such as TIAA-CREF s Higher Education and Leadership Conference, and lent their voice to articles in The Wall Street Journal and other media outlets. Additionally, BHEF framed the policy discussion around effective industry-collegiate partnerships at invitation-only events and in special publications. MEDIA ENGINEERING With online or computerized media now drawing more viewers than television, there are significant opportunities for growth in the traditional media workforce. NBCUniversal turned to BHEF for help in addressing its rapidly changing skill needs and its difficulty in finding college graduates who possess the required skills. BHEF worked with Stevens Institute of Technology to create a new academic minor in media engineering that will be offered to students in fall BHEF ANNUAL REPORT EXECUTIVE SUMMARY

6 University of Virginia Teresa Sullivan moderates a panel of member thought leaders on BHEF s response to the talent pipeline. Above: BHEF Vice Chair Roger Ferguson, Jr. leads a discussion on BHEF s Financial Services Industry Workforce Project. Larry Zimpleman, chairman, president, and CEO, Principal Financial Group, joined by Amy Brady, CIO, KeyBank, to examine how BHEF knowledge plays a vital role in large-scale financial firms. Below: Bob Caret, president University of Massachusetts, presents at BHEF s National Cybersecurity Network Summit in Boston.

7 BHEF 2014 MAJOR EFFORTS Through the collaboration of its members Fortune 500 CEOs, presidents of prominent colleges and universities, and other leaders BHEF launched the National Higher Education and Workforce Initiative (HEWI), which consists of regional efforts to build business-higher education partnerships, as well as a national strategy to disseminate findings and scale effective practices. HEWI responds to industry s needs for a diverse, high-skill workforce. Through HEWI, BHEF has innovative regional partnerships in data science and analytics, financial services, cybersecurity, water and materials sciences, energy, and engineering. Backed by some of the nation s most committed business and academic leaders, these partnerships demonstrate how BHEF meets America s higher education and workforce challenges. At the core of this effort is BHEF s model of strategic business engagement with higher education. The model aligns five levers, or strategies, to move from transactional relationships to strategic partnerships between the two sectors. Its framework enables business and higher education to build sustainable, high-impact programs in emerging fields that meet regional high-skill workforce needs, increase undergraduate interest and persistence in the disciplines mentioned above, and help students graduate from college workforce ready. To inform and scale its work, BHEF brings together national leaders to pilot new efforts and enter new geographic regions. BHEF s vision is to sustain a national network of experts from higher education, business, and government who serve as an intellectual core and promote cooperation among the three sectors in emerging fields. CYBERSECURITY The Bill & Melinda Gates Foundation awarded BHEF a multi-year grant to develop a business plan to provide industry-recognized cybersecurity credentials to students as they pursue postsecondary degrees. With support from BHEF member Accenture, BHEF identified five expansion strategies to improve the alignment between undergraduate education and the growing cybersecurity needs in the workforce. The final plan focused on new academic and career pathways that deliver industry-approved credentials and formed the basis for BHEF s broader cyber expansion strategy in the Metropolitan D.C. region. BHEF and its partners will co-create cyber competency maps, multiple academic and career pathways, and new undergraduate cyber programs connecting 2- and 4-year colleges and universities. (Notably, this framework also informs BHEF s work in other fields, such as data science and media engineering.) BHEF created its Cybersecurity Undergraduate Pathways (CyberUP) partnership, a diverse coalition from business, postsecondary education, credentialing associations, and online education providers. Although its plan is applicable across the postsecondary spectrum, CyberUP explicitly seeks to enhance and strengthen pathways for diverse and low-income students interested in pursuing cybersecurity credentials or degrees. BHEF leverages its cybersecurity efforts, including the BHEF-USM Cybersecurity Network and National Cybersecurity Network, through support from members Accenture, Boeing, Lockheed, McAfee, Northrop Grumman, Parsons, and Raytheon. BHEF member Office of Naval Research (ONR) noted this work and asked BHEF to support the Navy s civilian workforce needs. In 2013, as long-time employees retired or moved to the private sector, ONR funded BHEF to build the next generation of the U.S. STEM Education Model, the U.S. STEM Undergraduate Model. This resource helps educators, policy makers, and other key stakeholders to consider how different strategies may influence undergraduate outcomes and the STEM talent pipeline. In 2014, ONR awarded another grant to BHEF to expand its cybersecurity work throughout the greater Washington, D.C., area and to Tidewater, Virginia, home to several critical Navy installations. In September, BHEF convened member companies and institutions to outline its strategy to regional Tidewater higher education institutions and industry. In 2015, BHEF will identify the region s top employers and will reconvene the 2014 participants to map skills and enhance or develop new curricula that will respond to the Navy s needs. Hosted by member University of Massachusetts, BHEF s National Cybersecurity Network held its third annual meeting in December. The group continues to serve as a platform for business and higher education to share information, discuss, and curate undergraduate cybersecurity resources. It also provides a forum for dialogue about persisting gaps in cybersecurity workforce skills and a venue to implement actions to address these gaps BHEF ANNUAL REPORT MAJOR EFFORTS

8 BHEF Executive Committee Member Molly Corbett Broad engages in the 2014 BHEF Member Meeting. Teresa Sullivan, president, University of Virginia quote or image information to come for here. Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh. Euismod tincidunt ut laoreet Byron Auguste, deputy dolore magna aliquam erat director, National Economic volutpat duis autem. Council, meets with a select group of BHEF members in Washington, D.C. Above: Rear Adm. Matthew G. Klunder, chief of Naval Research, announces a significant award to BHEF to expand its cybersecurity work throughout the Washington, D.C., and Tidewater, VA areas. Below: Christine Tovee, Airbus CTO, defines the aviation industry s talent needs in a discussion with her BHEF academic peers. Lee Todd, Jr., president emeritus, University of Kentucky and Jim Clements, president, Clemson University at BHEF s June member meeting.

9 BIG DATA: THE NEXT FRONTIER FOR INNOVATION, COMPETITION, AND PRODUCTIVITY The U.S. needs at least 140,000 DATA-ENABLED scientists and professionals Big data is growing by 40% EACH YEAR with broad sector applications The U.S. needs about 1.5M ADDITIONAL MANAGERS capable of using data science DATA SCIENCE A 2011 report by the McKinsey Global Institute, Big Data: The Next Frontier for Innovation, Competition, and Productivity, notes that big data is growing at a rate of 40 percent each year and has broad application in virtually every sector. It also notes that the United States faces a significant shortage of data scientists and data-enabled professionals, stating that in addition to 140, ,000 experts, the country will need about 1.5 million additional managers capable of using data science in their decision making. 1 BHEF recognizes this need for the enabled professional: someone who can marry a deep background in a particular field (e.g., the arts, business, or health) with a strong understanding of data science. For example, in an apparel company, a production team could use data science to forecast trends, a marketing professional could use data science to forecast consumer demand for revitalized styles, and a senior team could use the data to approve production plans. New York City: Financial Services Based on the success of the National Cybersecurity Network, BHEF and the Business Roundtable joined forces to launch the Financial Services Industry Workforce Project in BHEF and the Business Roundtable consult with industry leaders, financial services organizations, and higher education institutions to prepare a diverse workforce well-trained in one or a combination of the following skills areas: cybersecurity, data science and analytics, and risk management; create opportunities for low-income students, minorities, and women; and, incorporate 21st-century competencies such as critical thinking, problem solving, analytical reasoning, communication, and working in multicultural teams into the undergraduate experience so that students are prepared with the knowledge and experience to succeed in a high-performing workplace. This work stems from the need for the industry to reflect its customers. The financial services workforce, as is common in many industries, is largely male, white, and aging. For example, The Wall Street Journal reports that in the past 10 years, 141,000 women, or 2.6 percent of female workers in finance, left the industry. 2 During the same time period, the number of men in the workforce grew by 389,000, or 9.6 percent, based on data provided by the U.S. Bureau of Labor Statistics. 3 This trend runs counter to growth patterns in the overall workforce. In addition, demographic changes increase the need to employ a more racially and ethnically diverse workforce. The first academic partner is the Zicklin School of Business at the City University of New York s Baruch College. The project will use five levers executive leadership, philanthropy, employee engagement, core competencies, and funded research to improve undergraduate educational outcomes and workforce alignment. Steered by CEOs of BHEF and Business Roundtable members from the banking, investment, insurance, and services sectors, the project will respond to the challenges facing students, higher education, and business. Throughout 2015, BHEF will support the project s working group consisting of CEO-designated senior staff as it collaborates with Zicklin faculty to focus on data science and analytics. In 2015, the working group will develop a matrix of existing undergraduate curricula, enhance existing or develop new courses or pathways, and identify additional partners. 1 McKinsey Global Institute, Big Data: The next frontier for innovation, competition, and productivity; IBM Institute for Business Value, Analytics: The Real World Use of Big Data. 2 Stock, K. (2010). Ranks of Women on Wall Street Thin. The Wall Street Journal. Retrieved from wsj.com/news/articles/sb U.S. Census Bureau. (2012). U.S. Census Bureau Projections Show a Slower Growing, Older, More Diverse Nation a Half Century from Now. Washington, DC: U.S. Department of Commerce. Retrieved from population/cb html BHEF ANNUAL REPORT MAJOR EFFORTS

10 New York City: Regional Data Science Task Force In 2014, BHEF entered a new phase of its data science work. Supported by a bridge grant from the Alfred P. Sloan Foundation, BHEF convened an invitation-only workshop of industry and higher education leaders at the New York Times Conference Center in May. A strong consensus emerged from representatives from some of the region s leading academic institutions and a range of industry sectors: Career opportunities for students with data science skills are expanding rapidly, especially in the New York City (NYC) region. This area is home to major sectors driven by big data, including technology, professional services, media/publishing, financial services, energy, and retail. Despite the sharp demand, both in NYC and nationally, for data science experts and enabled professionals, there are limited opportunities for undergraduates to study the field. To address this issue, the group established and launched a data science task force in February Led by BHEF, the task force identified the workforce needs from these sectors and laid the groundwork for the design and implementation of new undergraduate data science learning opportunities in the NYC region. BHEF seeks to increase the number and diversity of students prepared to enter the workforce and pursue careers as data scientists or data science-enabled professionals. Ohio BHEF helped member Case Western Reserve University work with industry to create an undergraduate degree program in data science. Through experiences inside and outside of the classroom, graduates will be enabled and prepared to succeed in the data science field. Those enrolled in the first cohort in 2014 will receive cutting-edge instruction, select an area of concentration, and experience an extensive capstone project. Upon completion, they will be well prepared to fill entry-level positions for data scientists in a variety of industries. As part of the major, students will receive a foundation in topics fundamental to data science (e.g., mathematics, statistics, and computing algorithms), exposure to allied technical areas (e.g., biology, physics, or engineering), and a focus on a specific domain area (e.g., health, energy, and manufacturing and production). As the program matures, other concentrations such as finance may be added. USI 2 MEMBERS AND THEIR FOCUS AREAS The City University of New York and IBM Large-scale data analytics and urban sustainability Miami Dade College and Next Era Energy IT and cybersecurity Northeastern University and Raytheon Cybersecurity University of Wisconsin and The Water Council Water Science Washington University in St. Louis and The Boeing Company Engineering BHEF member The Ohio State University (OSU) accepted its first cohort for a new bachelor s of science degree in data analytics in fall This new major fits into OSU s Discovery Themes Initiative, a 10-year, multi-million dollar research and education investment in global problems such as energy and environment, food production and security, and health and wellness. Students majoring in data analytics as an interdisciplinary degree will be exposed to a core curriculum in data science that will include foundational courses in mathematics, statistics, and computing. Students will then take additional courses to specialize in biomedical informatics, business analytics, or computational analytics. Depending on their discipline of interest, students will also be exposed to relevant specialized courses in data science such as visual analytics and sense-making, system modeling, pattern recognition, and machine learning. BHEF s data science task force industry partners include Accenture, Google, IBM, KPMG, McGraw Hill Financial, NBCUniversal, Northrop Grumman, SAS, TIAA-CREF, and The New York Times. Two of our public-sector partners include the New York Federal Reserve Bank and Cooper Hewitt. BHEF s education partners include Barnard College, the City University of New York, Cornell University, New York University, Rutgers University, and Stevens Institute of Technology BHEF ANNUAL REPORT MAJOR EFFORTS

11 INDUSTRY S ROLE IN UNDERGRADUATE STEM STUDENT SUCCESS In September 2014, the National Science Foundation awarded BHEF a 5-year grant to build the Undergraduate STEM Interventions with Industry consortium (USI 2 ) to develop new programs and help diverse students obtain the critical skills and undergraduate STEM degrees valued by today s employers. As part of HEWI, the USI 2 will work to raise the number of community college transfer students to 4-year institutions and to provide the support and guidance needed to ensure their completion of an undergraduate degree in a STEM discipline. Community colleges are critical to the nation s ability to increase and diversify its STEM-skilled talent pool. The more than 1,100 community colleges in the United States enroll more than 7.4 million degree-seeking students, who represent 46 percent of all U.S. undergraduates and 41 percent of first-time freshmen. 4 Of those students, 50 to 80 percent plan to transfer and earn a bachelor s degree, making community colleges a principal gateway into 4-year baccalaureate programs. 5 Nationally, 45 percent of community college students are minorities, and 36 percent are first-generation college students. 6 In addition, women account for more than half of all community college students. BHEF research indicates that 14 percent of all high school seniors are interested but not college-ready in math. For many of these students, their first postsecondary institution will be a community college. As reports from the s Council of Advisors on Science and Technology and others indicate, less than 40 percent of the students who declare a STEM major go on to earn a STEM degree. This attrition rate peaks in the first 2 years of the undergraduate experience, particularly for women and minority students. For these reasons, BHEF focuses its National Science Foundation resources at the juncture between 2- and 4-year institutions and explores how business can partner with higher education to increase the number of successful 2- to 4-year transfer students who pursue STEM degrees. USI 2 is a network of BHEF academic members partnered with top businesses firms. Each partnership implements a multidimensional program designed with proven evidence-based interventions to increase student persistence and success. These collaborations focus on high-skill, high-demand fields, such as cybersecurity and data science, which are applicable to a variety of industry sectors. For example, City University of New York, the nation s largest urban university, and IBM will support students transferring from 2- to 4-year programs in data science or urban sustainability. Students will partake in a summer bridge program, complete a capstone/senior thesis project, and participate in internships at IBM. 4 American Association of Community Colleges (AACC). (2015) Fact Sheet. Retrieved from 5 Horn, L. (2009). On Track to Complete? A Taxonomy of Beginning Community College Students and Their Outcomes 3 Years After Enrolling: Through 2006 (NCES ). Washington, DC: National Center for Education Statistics, Institute of Education Sciences, U.S. Department of Education. 6 AACC, 2015.

12 BHEF S NATIONAL PARTNERSHIPS BHEF works with its national partners to launch joint initiatives that prepare college students to become enabled professionals and that strengthen and diversify the talent pipeline. In higher education, BHEF collaborates with the American Council on Education, Association of Public and Land-grant Universities, and Association of American Universities to scale best practices from its work in data science and analytics and cybersecurity. On the industry side, BHEF teams with the Aerospace Industries Association and the Business Roundtable in the areas of financial services, data science and analytics, and cybersecurity. This regional data science corridor will become one of the foundations for BHEF s National Data Science Network. Combined with BHEF s work in New York, Florida, and elsewhere, the network will formally launch in NATIONAL DATA SCIENCE NETWORK PREPARES STUDENTS IN THE THOUGHT PROCESS OF DATA SCIENCE MEDIA ENGINEERING Radio and television as long-time dominant media outlets have lost substantial ground to new media driven by the Internet. As analog transitions to digital, media producers must seek better ways to deliver content to smartphones, tablets, and computers. Although online or computerized media are drawing more viewers than television, this shift provides opportunities for growth in traditional media companies. Coincident with these trends is a need for employees who have the foundational skills of a computer or electrical engineer, combined with technical skills associated with the new media outlets. NBCUniversal (NBCU) decided to address its rapidly changing skill needs and its difficulty in finding college graduates who possess the required skills by partnering with BHEF and Stevens Institute of Technology to develop an innovative solution: an academic minor in media engineering. A project team comprised of NBCU engineers and corporate social responsibility staff, BHEF staff, and Stevens faculty and administrators from the Schaefer School of Engineering & Science and the School of Systems & Enterprises identified the key qualities and skills necessary for a media engineer. This collaboration led to the development of a minor in media engineering, which will be offered to electrical and computer engineering majors in Stevens will be the first undergraduate institution to pilot the program aimed at training more engineers for careers in the ever-evolving media industry. The coursework and hands-on learning experiences will equip students with the skills needed in careers in advanced systems, broadcast networks, and digital media delivery. The curriculum can be customized to meet the needs of other institutions. The minor represents an important step to closing the skill gap between what engineers currently learn at universities and the specific engineering and technology skills they need to be successful in the media industry, which is rapidly changing in the face of new technologies, evolving delivery methods, and changing audience consumption habits BHEF ANNUAL REPORT MAJOR EFFORTS

13 INFLUENCING WORKFORCE OUTCOMES THROUGH MODELING The Aligned Workforce Model is the newest model in BHEF s portfolio. Funded by the William and Flora Hewlett Foundation, the model asks: What would happen if we created policies that align the education and workplace systems? Through simulation, the model examines how workforce outcomes would change if policies were implemented that emphasize 21st-century competencies such as mastery of core academic content, critical thinking and problem solving, collaboration, effective communication, self-directed learning, and an academic mindset. This model tracks individual employees with particular skill sets and provides a visual illustration of the positive benefits of hiring individuals whose skill sets are more closely aligned to workforce needs. Some specific outcomes addressed are unemployment rate, employee turnover and retention, workforce effectiveness and employee happiness, and productivity and profitability. The model works to address the paradox of unemployment and high worker demand in certain fields, such as computer science and nursing. Using an agent-based approach, it tracks individuals as they leave the education system and enter and progress through the workforce. People have varying skill and knowledge levels, receive differing types of professional development and training, and eventually leave the workforce through retirement or job loss. This is important because hiring managers and human resource officers have long used inefficient methods to hire a skilled workforce. Furthermore, today s jobs increasingly require a mastery of core academic knowledge in a given field as well as fundamental workplace competencies. However, these abilities are difficult to measure. Lacking good data, employers will use degrees and credentials as a proxy and will base hiring decisions on the presence of one or more very specific skills (e.g., knowledge of a particular software program, experience with grant writing, or facility in a particular sector). This practice presents a challenge because the rate at which these skills change or evolve is increasing rapidly, often leading to skill obsolescence. Thus, when employees are hired for skills alone, with only credentials as a proxy for more complex abilities, an inefficient system results. Employers that can better align hiring with their workforce needs will have better workforce outcomes. Colleges and universities that produce the knowledge and skills needed by employers will drive the economy. Graduates will find meaningful and consistent employment.

14 BHEF 2014 THOUGHT LEADERSHIP In 2014, BHEF was featured in a number of mainstream, industry, and higher education articles and broadcast segments. Additionally, it participated in high-profile events and invitation-only workshops and contributed to research and policy publications. These opportunities showcased BHEF progress, shared findings, and secured new members and partnerships. BHEF advances policy on behalf of its members through thought leadership that influences national dialogue. Below are highlights of the national press attention paid to BHEF and HEWI. MEDIA On April 7, The Wall Street Journal published a front-page article on BHEF members efforts in cybersecurity and data science. The article discussed the Advanced Cybersecurity Experience for Students (ACES), the nation s first and only undergraduate honors program in cybersecurity. BHEF was instrumental in helping Northrop Grumman and the University System of Maryland (USM) collaborate to develop ACES, which educates future leaders in cybersecurity through rigorous, hands-on learning experiences, an intensive interdisciplinary curriculum, collaborative projects, and professional insight from corporate leaders. On May 16, the Al Jazeera America news network ran a segment on BHEF s work in Maryland. A June 5 story by CNBC reported on how BHEF helped Case Western Reserve University and Cal Poly team with industry to develop new curricula in data science and cybersecurity, respectively. In June, BHEF participated in the National League of Cities meeting, Communities Advancing Postsecondary Success Cross-Site Training Session: Education-Workforce Alignment, in Louisville, Kentucky. The meeting provided city teams with frameworks and tools to build stronger career pathways aligned with the evolving local labor market. BHEF shared insights on its methodology for business-higher education partnerships, as well as its modeling work. In October 2014, the international, peer-reviewed journal, Industry and Higher Education, published the first in a three-part case study on HEWI. Future articles will appear in EVENTS BHEF s semiannual member meetings foster direct peer-to-peer dialogue unlike any other meeting, facilitating strategic business and university engagement across fields and linking leaders together for collective action. BHEF s 2014 winter meeting focused on addressing workforce challenges confronting U.S. businesses in emerging fields that drive innovation and competitiveness. Sessions explored how HEWI addresses these challenges in cybersecurity and data science. The program provided participants with a more nuanced understanding of workforce challenges and offered a powerful case for resolution through strategic business engagement with higher education. The meeting was a launching pad for new BHEF business and academic collaboration in emerging undergraduate programs in data science. In March, Brian Fitzgerald, BHEF CEO, testified before the Maryland General Assembly in support of the E-nnovate bill and an additional $50 million to fund the Maryland Venture Fund. Grounded in the economic theory of comparative advantage, BHEF members develop regional talent pipelines in cybersecurity, data science, and water science as part of HEWI. His testimony highlighted BHEF s role in the creation of successful collaborations among USM, Northrop Grumman, Raytheon, and Parsons to address the state s workforce challenges. BHEF s 2014 summer member meeting showcased HEWI s geographic expansion. Members and distinguished guests engaged participants in robust discussions that demonstrated how BHEF s model of strategic business and higher education engagement can be used to meet the goals of students, higher education institutions, and businesses. In September, Rear Admiral Matthew Klunder, joined by members Northrop Grumman, Parsons, Raytheon, and USM, led an event to mark the expansion of BHEF s cybersecurity networks to the Tidewater, Virginia, region, which was made possible by a major grant from the Office of Naval Research (ONR). Through ONR s support, BHEF and its regional industry and higher education partners will form a new cyber network and will develop new undergraduate courses uniquely designed to meet the region s workforce needs. Several of Tidewater s higher education institutions Old Dominion University, Tidewater Community College, and host Thomas Nelson Community College were on hand for the launch BHEF ANNUAL REPORT THOUGHT LEADERSHIP

15 In November, BHEF developed a panel presentation for the TIAA-CREF Institute s Higher Education Leadership Conference (HELC), Building the Future of Higher Education, to expose participants to BHEF s work. Specifically, the panel discussed how BHEF addresses workforce challenges through innovative undergraduate experiences. HELC is TIAA-CREF s annual, invitation-only event, providing senior institutional leaders with the opportunity to explore emerging strategic issues and challenges impacting the business of higher education. Decision makers gain insights into how to address challenges and maximize opportunities present in higher education. POLICY Strengthening economic growth will require higher rates of college readiness, higher rates of completion among students who enroll in higher education, tighter alignment between higher education and workforce needs, increased investments in research and development leading to innovation, and federal and state policies that support these outcomes. BHEF s 2014 policy priorities reflected this message and focused on the major appropriations and reauthorizations during this period. With HEWI and its strong national partnership model, BHEF is a key player in policy discussions on issues related to preparing a highly skilled workforce. College Access and Completion: Promoting sound higher education policies and funding that support students enrollment in higher education and training, including support for need-based aid, particularly for minorities, women, and veterans through the reauthorization of the Higher Education Act. Competitiveness and Innovation: Increasing the country s economic competitiveness by supporting innovation and evidence-based programs intended to strengthen education, particularly in STEM fields, as well as better align education and the workforce through the reauthorization of the America COMPETES Act. Research and Development: Promoting federal investments in research and development as a strategy to drive the innovation economy, including the pipeline of talented researchers and scientists at the faculty, post doc, graduate, and undergraduate levels. In April, BHEF and ACT, a leader in measuring college and career readiness trends for decades, released a policy brief at the U.S. News and World Report s STEM Solutions event in Washington, D.C. The report includes recommendations for strategic collaboration among business, higher education, and government to create a more diverse workforce for the innovation economy. The brief, Building the Talent Pipeline: Recommendations for the Condition of STEM 2013, based on principles rooted in HEWI, offers recommendations relative to ACT s report, The Condition of STEM The report articulates how emerging fields and the need for enabled professionals cut across industries, including aerospace and defense, financial services, agriculture, health, and energy. BHEF also contributes to Close the Innovation Deficit, an effort of business, higher education, scientific and technology manufacturing leaders concerned about cuts and stagnating federal investments in research and higher education. BHEF understands that innovation depends on funding for higher education to support ideas and the people behind them. These breakthroughs power our economy, create jobs, and ensure the United States role as a global leader. INNOVATION DEFICIT FACTS Over the last 10 years, R&D expenditures as a share of economic output have remained nearly constant in the U.S., but have increased by nearly 50% in South Korea and nearly 90% in China. Source: NSF S&E Indicators 2012, Figure O-3. From 1996 to 2007, R&D expenditures in the U.S. grew by an average of 5.8% annually. During the same time period, China s average annual growth was 21.9%. During the first year of the economic slowdown ( ), U.S. expenditures decreased slightly while China s increased by 27%. Source: NSF Indicators Figure O-4 and Overview. The United States spent up to 17% of discretionary spending. on R&D during the 1960s, in part because of the space program, which resulted in a great deal of spinoff innovation;. in recent years, outlays have fallen to around 9% of the federal discretionary budget. Source: Task Force on American Innovation, American Exceptionalism, American Decline?, December BHEF ANNUAL REPORT THOUGHT LEADERSHIP

16 Patrick Abbas, vice president of consumer analytics, Humana, explains how strategic partnerships with higher education are vital to his company s talent pipeline and success. Above: David Maxwell, president, Drake University, shares how BHEF is helping his institution develop a first-of-its-kind undergraduate program in data science. Below: Mark Wrighton, chancellor, Washington University in St. Louis, stresses the importance of emerging fields to innovation and entrepreneurship in undergraduate education.

17 BHEF 2014 LOOKING FORWARD BHEF is poised to achieve greater results in 2015 as it deepens its efforts in data science and translates its successes into thought leadership. The demand for the enabled professional drew BHEF first to cybersecurity and now to data science. These emerging fields offer opportunities to build new career pathways beyond the traditional STEM major. Not all cyber or data science professionals need to be fully proficient in STEM disciplines; thus, they do not have to pursue a STEM major to advance in the field. For example, BHEF s analyses in cybersecurity show industry needs an array of personnel, from highly skilled, technically trained specialists whose primary function is cybersecurity expertise to managers, policy makers, administrators, and support professionals who are cyber-enabled or cyber-aware. Given these considerations, needed is a fundamentally new approach to talent development that, in consultation with industry, builds literacy through a combination of academic coursework, professional certifications, and work experience. The approach must be flexible and careful about creating overly prescribed or narrow occupational paths that are either unresponsive to an evolving field or that obstruct talent from entering the field, while offering industry a means for recognizing and cultivating talent and recognizing students different pathways to success. BHEF s work in cybersecurity exposed similar and exciting opportunities in the sister field of data science. Data science programs are emerging at colleges and universities throughout the United States. Although most are at the graduate level (offering expert-level instruction in data science tailored to specific disciplines), a handful of new programs are at the undergraduate level. Almost all of these programs were launched within the past 5 years. Yet, despite this rapid growth, there are no widely used or accepted competencies, or standard curriculum at the undergraduate level, for either expert or enabled graduates. As a result, BHEF is exploring expansion of its data science efforts through discussions with its members and partners. Collaborations in data science between business and higher education have the potential to create new majors as well as integrate learning opportunities in data science and analytics into broader liberal arts curricula (e.g., the social sciences and humanities) through minors, concentrations, and certificates. Such strategic partnerships could result in a significantly more diverse talent pool entering the data science and analytics-enabled workforce. BHEF sees tremendous opportunity for the American workforce through the creation of new programs and student experiences (e.g., capstone projects or interdisciplinary team efforts) in data science and analytics for the non-stem undergraduate population. BHEF is working with funders to expand its New York City data science task force in 2015 to new members from the academic, business, and cultural and research communities. In 2015, it will reconvene the task force at a meeting hosted by industry leader SAS. There, the group will deliberate and confirm the focus, structure, and deliverables of its working groups. In 2015, BHEF will work with its members to expand these efforts. Through BHEF, industry leaders and professionals will connect and complement their peers in academia, and together, build groundbreaking pathways in data science and analytics. We invite you to follow BHEF s work at BHEF ANNUAL REPORT LOOKING FORWARD

18 BHEF 2014 FINANCIALS REVENUE AS A PERCENTAGE BY SOURCE 5% Investment Return 18% Grants & Contributions EXPENSES AS A PERCENTAGE OF REVENUE 53% Net Dues 24% Net Assets Released from Restrictions 3% Membership 5% Communications 17% Membership Meetings 75% Program Sevices BHEF ANNUAL REPORT FINANCIALS

19 BHEF reflects our members passionate commitment to the success of our nation s workforce and the undergraduates poised to become our next generation of innovators. Each member brings a credo of excellence that drives our work. BHEF leadership is a true partnership between business and higher education, and our chairs personify the deep respect and admiration between the two sectors. We are deeply grateful to Barbara R. Snyder, president, Case Western Reserve University, and Roger W. Ferguson, Jr., president and CEO, TIAA-CREF, for their wise counsel, heartfelt sincerity, and good humor throughout the past year. We are also grateful to our rising chair, Eduardo J. Padrón, president, Miami Dade College, for his expertise and enduring support. Lastly, BHEF thanks our Executive Committee members for their personal commitments, which ensure that the National Higher Education and Workforce Initiative continues to break ground and forge successful pathways for undergraduates into the known and yet to be known fields that will define innovation and the 21st-century experience.

20 BHEF 2014 MEMBERSHIP Jeffrey D. Armstrong California Polytechnic State University Sondra Barbour Executive Vice, Information Systems and Global Services Lockheed Martin Corporation Jorge L. Benitez Chief Executive United States and Senior Managing Director for North America Accenture Lee C. Bollinger Columbia University Molly Corbett Broad American Council on Education Wes Bush Chairman, CEO, and Northrop Grumman Corporation Bill Cameron Chairman of the Board & CEO American Fidelity Life Insurance Company Robert L. Caret University of Massachusetts Carl Casale and CHS Inc. Christopher M. Chadwick Executive Vice The Boeing Company James P. Clements Clemson University Raymond W. Cross University of Wisconsin System Michael V. Drake The Ohio State University Roger W. Ferguson, Jr. and CEO TIAA-CREF E. Gordon Gee West Virginia University Todd Gebhart Vice Chairman of the Board of Directors McAfee, Inc. Charles L. Harrington Chairman and Parsons Corporation Rev. John I. Jenkins, C.S.C. University of Notre Dame Roberts T. Jones Education and Workforce Policy, LLC Linda P.B. Katehi Chancellor University of California, Davis Thomas A. Kennedy Chairman and Raytheon Company Renu Khator University of Houston Chancellor University of Houston System Michael D. King Vice, Global Education Industry IBM Corporation William E. Kirwan, II Chancellor University System of Maryland Rear Admiral Matthew L. Klunder Chief of Naval Research Office of Naval Research Steven Knapp George Washington University Michael V. Martin Chancellor Colorado State University System David Maxwell Drake University M. Peter McPherson Association of Public and Land-grant Universities James B. Milliken Chancellor The City University of New York Dennis M. Nally Chairman PwC International Ltd. Janet Napolitano University of California Diana Natalicio The University of Texas at El Paso BHEF ANNUAL REPORT MEMBERSHIP