SMU Commencement Weekend, Part 3 - Commencement Address
HBR on The Talent Curse

HBR: State Street and Social Responsibility

HBRMayJune2017I enjoyed this article about State Street's innovative approach to create employment for at-risk youths, in the May-June 2017 issue of Harvard Business Review. (The result is called Boston WINs, which stands for "workforce investment network.") The key, the article explains, is a system to support kids as they move through school and into the workforce. State Street has developed a highly original process where it has enlisted five nonprofits to support at-risk youths in a manner akin to a relay race: each nonprofit focuses on what it does best, for instance teaching study skills or finding a good fit for college or applying to university, and then passes off the student to another nonprofit to fulfill different needs. It allows each nonprofit to focus on what it does best and create meaningful impact for the students.

In the words of State Street CEO Joseph Hooley: "Getting students through schools, into college, and then into good jobs requires managing a series of handoffs and transitions, just as runners in a relay race have to pass the baton."

The five partners ultimately selected to be part of the experiment were: Year Up, which provides "intensive skills training for low-income young adults", UAspire, which helps students "find ways to finance college, The Boston Private Industry Council, which helps "students obtain workplace experience and find a path from school to work", College Advising Corps, which "assists students with the college search and application process", and Bottom Line, which "helps low-income and first-generation students get to and through college." 

In its first year, Boston WINs served close to 20,000 youth and State Street hired over 200 of the Boston WINs graduates (note that not all 20,000 graduated in their first year.) 20 schools are participating this year, and the students have a list of 12 milestones they much reach by certain dates. State Street "opened a facility at the University of Massachusetts that allows students to work part-time, gaining job experience and giving us a look at how they work." It also has "more than 50 interns from Bunker Hill Community College in any given time." The program launched in June 2015 and State Street has committed to four years of funding, so the program is at its halfway mark now, but it seems highly promising, if two years can ever be enough to judge such things.

In some ways, it reminded me of recent approaches to innovation, especially for pharma, where big pharmaceutical companies have developed agreements with universities where the universities, funded by big pharma, focus on early-stage innovation and big pharma gets first look for commercialization. Obviously there are many differences too but it touches upon specializing, focusing on what one does best. I wonder if we'll see a continuation of this trend toward more segmentation of the R&D pipeline, with different companies becoming responsible for different stages. The difficulty would be to work out the monetary compensation aspects. But maybe a time will come where this makes business sense.

Here's to hoping Boston WINs continues for many more years!

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