Advisory or user groups (including focus groups) can be used to identify and assess manufacturers needs. Advisory groups are groups of companies in a common industry sector or with a common problem or interest, such as quality. User groups are composed of manufacturers who have received assistance services.

In using an advisory group, the aim is to put together a homogeneous group of industries that represent a dominant industry sector. A program might structure an advisory group by working with some of the major trade associations in its service area or by organizing a group around a large manufacturer, its vendors and suppliers.

The group may be further refined by taking trade association or supplier lists and segmenting according to company size, SIC or geographic region. In service areas not dominated by a particular manufacturer or organized trade association, a program may work with the local chamber of commerce or other economic development organization.

Advisory groups should have a facilitator at their meetings to stimulate discussion and keep it focused on industry needs. The facilitator poses a series of broad, open-ended questions to group members; examples of these questions include the following:

• What are the most critical issues facing your business today?
• What are your firm's or industry's greatest problems?
• What are the most costly components of your operation?
• In what areas do you think your firm or firms in your industry need to modernize?
• What types of assistance are most needed by firms in your industry?
• What are the most important industries in your region?
• What are the most significant unsolved problems that impede manufacturers' growth in this region?
• What are your perceptions of strengths and weaknesses in this region's manufacturing industry?

Next, the information from these group-based needs assessments is analyzed to identify common issues, problems and opportunity areas. (Irrelevant issues beyond the scope of the program-such as inadequate water and sewer capacity-are excluded.) This information is then combined with secondary source data on number of establishments or employment by SIC to help set priorities for industry concentrations.

Virtually all assistance programs have advisory groups with manufacturing representation as part of their organizational structure. User groups are less widespread.

Advisory groups can provide guidance to program managers at any stage in the assistance program process. These groups are particularly useful in generating and reacting to ideas for resource allocation priorities, program offerings, delivery approaches and referral sources. Users groups are appropriate after service delivery as an evaluation feedback mechanism for changing service approaches.

Group processes are also useful as a prelude to additional regional-level needs assessment research. For example, they can assist in designing questionnaires, pretesting and suggesting methods for survey administration.

Connecticut

The Connecticut State Technology Extension Program (CONN/STEP) used a focus group process to help plan program offerings. Initially, a focus group was held with the program's general advisory panel. Because of the wide cross-section of manufacturers represented, however, the continuity of the discussion was difficult to maintain despite the presence of a facilitator. Organizers corrected this problem by holding industry-specific groups directed at common problems such as scrap reduction. Four three-hour groups were conducted.

• A group of ten machining companies, contacted through their trade association, participated in a discussion of scrap rate. The session opened with the vice president of a successful machine shop presenting his company's program for quality enhancement and scrap reduction; it concluded with a discussion of technology problems common to machine shops.
• Seven plastic injection molding companies, contacted through their trade association, participated in a session that opened with an expert from a large firm presenting the latest injection molding techniques; a discussion of common production problems followed.
• A third session was held with six biotechnology companies, opening with a presentation from the head of biotechnology research at the University of Connecticut.
• Twenty-one firms using computer-assisted design/computer-assigned manufacturing (CAD/CAM) technology participated in a fourth session in which the speaker was a CAD/CAM vendor representative.

Organizers found that providing information to the participants in exchange for obtaining their insight on needs and problems was an effective approach. Among the lessons program administrators learned from these discussions were: (1) firms prefer to work with an engineer rather than being told how to implement a change, and (2) group solutions such as flexible networks are more likely to work within some industry segments than others. To investigate the applicability of these findings to the general population of manufacturers, CONN/STEP management is using information from these groups to conduct a statewide needs survey.

Indiana

Indiana Business Modernization and Technology Corporation began its manufacturing extension program with volunteer, broad-based regional advisory groups representing Indiana's manufacturing base and quality networks in each of BMT's 14 regions. BMT has since expanded its advisory boards to include manufacturing representatives from each of the state's 92 counties. These members, along with other public and private sector representatives (bankers, economic development representatives, and so forth), focus on identifying networks and needs.

1. Advisory groups reveal needs not previously thought of by the program administrator.
2. Advisory groups obtain consensus on these needs among key industry players.
3. The advisory group process secures advocates for program offerings and delivery mechanisms.
4. By forming networks of large customers and smaller suppliers, it is much easier for larger customers to communicate needs and for smaller suppliers to resolve problems associated with meeting those needs.

1. It can be difficult to keep the conversation focused in advisory groups. Failure to structure and facilitate these groups greatly diminishes their usefulness. Unstructured group discussions can be dominated by one or two participants.
2. It can be difficult to provide incentives for manufacturers to participate in a group discussion on needs assessment, since the direct payoffs are not as clear as they would be in a discussion on joint production or marketing, for example.
3. Results from advisory groups may not reflect the needs of the population of firms in the state or region.

About the case example:

1. Peter LaPlaca
   CONN/STEP
   368 Fairfield Road
   Storrs, CT 06269-2041
   203-486-2684
2. Robert B. Bassle r
   Indiana BMT Corporation
   One North Capitol, Suite 925
   Indianapolis, IN 46204
   317-635-3058

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