A strategic plan for integrating state human resource, economic development, and job training services is intended to stimulate increased productivity within the U.S. workplace. Long-term solutions to the competitive challenges can be achieved by changing thinking and behavior of organizations. High performance businesses that have achieved excellence realize the need for these changes and share several important characteristics. These include effective leadership, strategic planning, enlightened human resource management, improved quality assurance systems, and effective information systems. State government should increase its productivity and return on investment. Governors as leaders must promote a commitment to high standards of ethical and professional conduct, efficient use of resources, cooperation and teamwork, and continuous improvement in the quality of state services. Services must be comprehensive and integrated, and complement the commitment of private resources. A strategic plan must set the goals that drive all economic and human resource development activities. An ongoing commitment to upgrade the skills of the state work force improves the quality of state services. Quality assurance techniques should be introduced, performance standards should be established, and states should develop incentives for attaining performance outcomes and sanctions for failing to meet them. Governors can take the lead in fostering a culture of excellence by strengthening state government and supporting leaders in industry, business, and education who share this vision. Recommendations for modernization, technology, financing, and employment support offer a strategic action agenda for reshaping existing state economic development and work force preparation systems. These recommendations will increase the productivity of workers and firms and maximize the return on public investment. (14 references) (NLA)