Cetys Mexico 2

New Maps for a Flat World:

New Roles for Higher Education in Regional Economic Development

November 3-4, 2008

Ed MorrisonPurdue Center for Regional Development

Institute for Open Economic Networks (I-Open)

Rest of the

Traded

Businesses

Local Businesses

Purchases and paychecks

Your economy

Another

region

Brain Drain and

Purchases

Good Money: Increase the volume of

income into the region with competitive

traded businesses

Neutral Money: Increase the velocity

of money circulating in the region with

local businesses to create more jobs

Bad Money: Reduce income leaks

by reducing outside purchases,

workers who move out, and

students who drop out

Economic Development in an Nutshell

Source: Ed Morrison, David Morganthaler

DependencyDrop Outs

Economic Development in 60 seconds

Rest of the

Traded

Businesses

Local Businesses

Your economy

Another

region

Brain Drain and

Purchases

traded businesses

DependencyDrop Outs

Rest of the

Traded

Businesses

Local Businesses

Your economy

Another

region

Brain Drain and

Purchases

traded businesses

DependencyDrop Outs

Rest of the

Traded

Businesses

Local Businesses

Your economy

Another

region

Brain Drain and

Purchases

traded businesses

DependencyDrop Outs

Every few hundred years in Western history, there occurs a sharp transformation.

Peter Drucker (1986)

Strap on your goggles...

Our story begins with the emergence of our Grandfather’s economy

A little background...

A downward cycle of economic development

accelerates with a deteriorating civic environment

Entrepreneurial

activity

declines

Tax base erodes

Civic amenities and

infrastructure

deteriorate

Higher taxesWell-paid jobs

decline

Quality of life

deteriorates

Skilled labor

supply shrinks

Businesses

shrink or leave,

start-ups do

not arise

Business base

gets weakerDeteriorating Civic

Environment

Skilled people

move out

Brain drain as

young people

drop out and

move out Place develops a

bad reputation

Source: Ed Morrison

A prosperous cycle of economic development

accelerates with civic collaboration

Entrepreneurial

activity

increases

Tax base grows

Civic amenities

and infrastructure

improves

Lower taxes

Well-paid jobs

increase

Quality of life

improves

Skilled labor

supply grows

New firms emerge,

established firms

Build a quality,

connected place

Build brainpower

with 21st century

work skills

Build innovation

and entrepreneur

networks

Collaborative

Civic Environment

Skilled people

move in

Source: Ed Morrison

Our Grandfather’s economycreated enormous wealth through innovation

Video available at: http://www.open-video.org/details.php?videoid=4655

Our Grandchildren’s economy is emerging around networks

Video available at: http://www.youtube.com/watch?v=_MeJ0dHIEfA

The S-Curve caught up to our Grandfather’s economy

‣ Global markets integrated

‣ Costs collapsed

‣ The Internet exploded

What happened in my home townThe lesson: Markets don’t lie

Our Grandchildren’s economy is emerging with wealth created by networks

Source: Ed Morrison

Our Challenge: Finding the pathways to our Grandchildren’s economy

The networks leading to our Grandchildren’s economy are on this base map

Brainpower21 Century Talent

InnovationEntrepreneurship

Networks

BrandingExperiences

Quality, Connected

Places

CivicCollaboration

The networks leading to our Grandchildren’s economy are on this base map

Networks

BrandingExperiences

Quality, Connected

Places

CivicCollaboration

1.Brainpower networks2. Innovation and entrepreneurship

networks3.Quality place networks4. Branding networks5.Collaboration networks

Open Source Economic Development

Our economy is undergoing fundamental shifts. The integration of global markets, coupled with the explosion of the Internet in the late 1990's, has created a "perfect storm" of deep economic change. To thrive in this environment, regional economies need balanced strategies that encourage new conversations, networks, and investments in the following areas:

Strengthening Brainpower.-- In today's global economy, brainpower provides the only basis for sustainable competitive advantage. This fact presents us with some clear imperatives. Advances in brain science tell us that, in a knowledge economy, workforce development begins with a pregnant mother. Every child needs pre-school education and should be able to read and comprehend well by the third grade. Dropping out of high school creates a lifetime economic disability.

Connecting innovation and entrepreneurship networks.-- These networks convert brainpower into wealth through new products, new services, new markets. Innovation provides the process and entrepreneurship provides the skills to translate ideas into prosperity.

Building quality, connected places.-- Smart people can live anywhere. They will choose to live in regions that respect sound principles of physical development. Equally important, quality places have thick connections to other people, other markets.

Promoting an effective brand.-- Prosperous regions have positive stories to tell. These stories create a unique experience, a special identity, a common understanding of core strengths, a shared view of future opportunities.

Strengthening civic habits of purposeful dialogue.-- In a globally connected economy, no one can go it alone. Prosperous regions will develop civic habits of thinking and acting together. Building collaboration and trust carries real competitive advantages: the regions that collaborate will spot opportunities and move more quickly than regions that do not.

Ed Morrison developed Open Source Economic Development. It is

freely available under a Creative Commons license. To view a copy of

this license, visit http://creativecommons.org/licenses/by/3.0/

Networks

BrandingStories

Quality, Connected

Places

CivicCollaboration

Innovative Businesses

ic Clu

Hot Spots

Innovation Productivity Prosperity

Accelerating cycle

BrainpowerInnovation networksQuality, connected placesEffective brandingCollaborative leadership

Source: Ed Morrison, based on Council of Competitiveness

The challenge is to build and support

productive, focused networks around strategic issues

Collaboration

The “theory of change” behind Open Source Economic Development focuses on aligning networks

Open Source Economic Development leverages the power of networks

What’s the value of one cell phone?What’s the value of ten?

Innovation Productivity Prosperity

Accelerating cycle

BrainpowerInnovation networksQuality, connected placesEffective brandingCollaborative leadership

Source: Ed Morrison, based on Council of Competitiveness

The challenge is to build and support

productive, focused networks around strategic issues

Collaboration

The “theory of change” behind Open Source Economic Development focuses on aligning networks

Open Source Economic Development leverages the power of networks

What’s the value of one cell phone?What’s the value of ten?

Part 1: Finding the New Pathways:Workforce Leadership in the Age of Networks

Networks

BrandingExperiences

Quality, Connected

Places

CivicCollaboration

Part 1: Finding the New Pathways:Workforce Leadership in the Age of Networks

Networks

BrandingExperiences

Quality, Connected

Places

CivicCollaboration

Here’s a simple definition of Brainpower

Workforce development coordinates the development and delivery of brainpower

to competitive companies

Our Starting Point: Our Grandfather’s pathways are too rigid, too simple or wrong

K through

4 Years of

College

Career

K through

Career

Our Starting Point: Our Grandfather’s pathways are too rigid, too simple or wrong

K through

4 Years of

College

Career

K through

Career

Here’s a new Brainpower base map

K through

Dependency

Careers

Working

$10.00per hour

2 years

Certificates

4 years

Old, rigid thinking produces too many people below the line.

K through

Dependency

Careers

Working

$10.00per hour

2 years

Certificates

4 years

Old, rigid thinking produces too many people below the line.

K through

Dependency

Careers

Working

$10.00per hour

2 years

Certificates

4 years

Remember our starting point: Overcoming some potent myths from our Grandfather’s economy

The Smart Ones

The Not So Smart Ones

The world is far more complex...

Ages 0-4

Primary/Elementary/Middle School

3-5 6-8K-2

Tech Prep

College Prep

High School College/University

4 Year College/University

CommunityCollege

Pre School

Reading by the end of Grade 2

Career Pathways

Character Education

Entrepreneurship Education

Science and Math Education

Drop out prevention

Continuous teacher development

We need innovations to expand flexibility and options

Open Source Economic Development develops networks with tight cores and

open boundaries

Part 2: Building Entreprenuership and InnovationNetworks

Networks

BrandingExperiences

Quality, Connected

Places

CivicCollaboration

Part 2: Building Entreprenuership and InnovationNetworks

Networks

BrandingExperiences

Quality, Connected

Places

CivicCollaboration

Prosperity

Open innovation networks move us to

the Second Curve

Stage 4Stage 3Stage 2Stage 1

Anchor

Supporting networksbegin to form with public and private

support

Clusters typicallystart from a

seed investment in a shared

platform

Networks continue to form

by attractingfirms and brainpower

Cluster continues to evolve with split-offs

and outside investment

5 to 20 years

A strategy map for colleges and universities

Start-up firmsStage 1

Venture investor and entrepreneur

networks

Colleges and universities

Skilled regional talent pool

Growth companies Stages 2, 3, 4and clusters

Provides research, ideas, entrepreneurship

support and smart people

Provides capitaland business development

expertise

Supports critical mass of

smart people

Supports critical mass of smart people

Adds new firms to technology clusters

from new starts and spin-outs

Provides R&D partners

Creates wealth to expand

investment

Provides training, technology support to clusters

Source: Ed Morrison and I-Open

Our Approach

• Create regional networks that support entrepreneurship at all levels

• Develop stronger connections among support organizations

• Increase resources for existing and emerging entrepreneurs

Entrepreneurship Strategies

Educating Future Entrepreneurs

• Entrepreneurship Youth Institute

• STEM-Focused Entrepreneurship Summer Camp (2007 and 2008)

• Classroom Business Enterprise

• Develop Entrepreneurship Program at Regional Career Centers

Supporting Emerging Entrepreneurs

• Regional Business Plan Competition

• Entrepreneurship Business Information Network (eBIN)

• Entrepreneurship Support

Building Support Organizations

• Regional Angel Investor Network

• Wealth Transfer/Community Development Venture Capital Fund

Encouraging Communities to Be “Entrepreneur-Friendly”

• Energizing Entrepreneurship

• Entrepreneurship & Innovation Compact

Equipping existing businesses to act Entrepreneurially

✓Eureka Winning Ways

Industry Cluster Approach

Move Innovations into North Central Indiana Businesses

• Identify Strongest Regional Clusters

• Identify Relevant Innovations

•Recruit Pilot Businesses

Industry Cluster Approach

Use an Enterprise Wide approach:

• Tech Transfer

• Technical Assistance

• Skill Development at all levels

Types of Innovations

• Innovations are technologies, processes, business models, operational procedures, systems change

• Often Bundles of Innovations rather than a single big idea

Cluster Innovations

Advanced Manufacturing

• Healthcare Cost Control

• Energy Efficiency

Advanced Materials

• Nano-structured Coatings

Agribusiness, Food Processing

• Supply Chain Innovations

Clusters – Additional Initiatives

• Green Collar Workforce Certification

• Eureka Winning Ways

Start-up firmsStage 1

Venture investor and entrepreneur

networks

Colleges and universities

Skilled regional talent pool

Growth companies Stages 2, 3, 4and clusters

Provides research, ideas, entrepreneurship

support and smart people

Provides capitaland business development

expertise

Supports critical mass of

smart people

Adds new firms to technology clusters

from new starts and spin-outs

Provides R&D partners

Creates wealth to expand

investment

Provides training, technology support to clusters

Source: Ed Morrison and I-Open

Part 3: Building The Capacity to Collaborate

Networks

BrandingExperiences

Quality, Connected

Places

CivicCollaboration

Part 3: Building The Capacity to Collaborate

Networks

BrandingExperiences

Quality, Connected

Places

CivicCollaboration

The Realities We Face

➡ Command and Control will not work

➡ No one can tell anyone else what to do

➡ We are stuck in old thinking...To transform, we will need new thinking...

The Realities We Face

Workforce development takes place in a civic space outside the four walls of

any one organization

Alliance

Mt. Pleasant

AlliancePartnership

County ED

Digital Corridor

Chamber

County

County$

BusinessInvestors

County ED

WorkforceInvestment

ThinkTec

Low Country

Defense Industries

MarineSciences

Other Local and Chamber ED

Activities

Tourism/ CVB

Education Foundation

Environmental Groups

Base Closure

Higher Ed consortium

Low Country Graduate

Center

BenchmarkCollaborative

Charleston

N. Charleston

World Trade Center

State Legislators

Here's what economic and

workforce development in Charleston, SC looks like

Workforce development takes place in a complex system

Alliance

Mt. Pleasant

AlliancePartnership

County ED

Digital Corridor

Chamber

County

County$

BusinessInvestors

County ED

WorkforceInvestment

ThinkTec

Low Country

Defense Industries

MarineSciences

Other Local and Chamber ED

Activities

Tourism/ CVB

Education Foundation

Environmental Groups

Base Closure

Higher Ed consortium

Low Country Graduate

Center

BenchmarkCollaborative

Charleston

N. Charleston

World Trade Center

State Legislators

Here's what economic and

workforce development in Charleston, SC looks like

Workforce development takes place in a complex system

Workforce is here

When there is no alignment, people get confused

A “top-down” leadership group trying to impose a strategy doesn’t work

The answer comes in alignment through “link and leverage” strategies

We need to start thinking in terms of networks

Knowledge Person;

Boundary Spanner

Knowledge Person;

Hub; Influencer

Peripheral

Person

Information

Broker

Knowledge

Person

Positive

conversations

Negative

conversations

Prosperity

People move in the direction of their conversations...

Strategic doing guides these conversations

Source: Ed Morrison

The key to strategy is guiding the conversations

Open Source Economic Development requires a new approach to leadership

Traditional Leadership Network Leadership

Centralized Distributed, Shared

Single Leader Many Leaders

Command and control Link and leverage

Lead from the frontLead from the front and the rear (it depends)

And a new set of leadership roles

Network Leader Role Responsibilities

Conveynor Creates neutral space

Connector Links people and assets

Civic entrepreneur Sees new opportunity

Guide, Mentor Maps a complex process

Strategist Reveals larger patterns

Leadership Direction

Civic Deliberation

Low High

Civic Deliberation

Low High

Apathy

Civic Deliberation

Low High

Apathy

ProcessParalysis

Civic Deliberation

Low High

Apathy

ProcessParalysis

Back RoomPolitics

Civic Deliberation

Low High

Apathy

ProcessParalysis

Back RoomPolitics

Open Source Economic

Development

‣ Step 1: Create a neutral civic space

‣ Step 2: Establish new habits of “thinking together”

‣ Step 3: Move from “thinking together” to “acting together”

Well....How do we get there?

Step 1: Create a neutral civic space

✓ Form a core team to launch civic conversations about brainpower

✓ Find a physically neutral space

✓ Establish clear rules of civility

Getting started...Civic Forums help you...

‣ Identify networks and map assets

‣ Build civic habits of “thinking together”

Civic forums provide a good way to start

strategic doing

Source: Nead Brand Partners

✓ Form a core team with someone with “convening power”

➡ College and university presidents

➡ Community foundations

➡ Health system executives

✓ Find a physically neutral space

➡ Colleges and universities

➡ Libraries

➡ Community centers

✓ Establish clear rules of civility

➡ Open boundaries

➡ Treat each other with mutual respect

➡ Transparency, sharing

Step 2: Establish new habits ofthinking together

✓ Map your networks and explore new connections

✓ Guide the conversations about opportunities

✓ Leverage the Internet: Web 2.0

Mapping assets helps people see connections

Mapping social networks helps people think horizontally

Civic forums help us cross the

"invisible fences" (that no longer work)

Mapping networks can guide our behavioracross old boundaries

innovatingnetworks.net

Leveraging the Internet keeps people connected...opens the door to others

Step 3: Move to “acting together”

✓ Establish core team with clear roles and responsibilities

✓ Develop a network of partners

✓ Build habits of strategic doing

Draw your own circles of engagement

Guide conversations to “next steps”

Replace strategic planning with “Strategic Doing”

We need new habits of thinking

together...Strategic doing

Our grandfather's economy Our grandchildren's economy

Strategic doing is an open process with

leadership direction that dynamically aligns

Strategic Doing is like paddling a kayak in the ocean

Strategic Doing focuses on answering four questions:

1. What could we do together?

2. What should we do together?

3. What will we do together?

4. How will we learn together?

Explore

FocusExecute

Evaluations

Action Plans

Insights

Initiatives

Develop ideas about what we can do

together

Choose what to

Identify and align resources to

specific initiatives

Execute and measure results

Strategic Doing: People move in the direction of their conversations

Explore

FocusExecute

Evaluations

Action Plans

Insights

Initiatives

together

Choose what to

Explore

FocusExecute

Evaluations

Action Plans

Insights

Initiatives

together

Choose what to

Explore

FocusExecute

Evaluations

Action Plans

Insights

Initiatives

together

Choose what to

Explore

FocusExecute

Evaluations

Action Plans

Insights

Initiatives

together

Choose what to

Explore

FocusExecute

Evaluations

Action Plans

Insights

Initiatives

together

Choose what to

We move around the cycle with a Strategic Doing Pack of workshop exercises

Explore

FocusExecute

Evaluations

Action Plans

Insights

Initiatives

together

Choose what to

We move around the cycle with a Strategic Doing Pack of workshop exercises

Exercise 1

Exercise 2Exercise 376

Exercise 4

StrategicDoing Forum

Source: Ed Morrison

Regions are moving toward civic processes

that focus on Strategic Doing

30-90 days

working groups

Strategic Doing is not an event...it’s a disciplined process

Civic Network Strategies

Conduct Quarterly WIRED Forums around the region

‣ Note: Our Clean Energy Forum and our regional leadership initiative emerged from these regional forums

Engage Civic Leaders on a Regional Innovation Mission

✓Example: National Renewable Energy Lab visits

Civic Network Strategies

Develop a Structure for an On-Going Regional Civic Network

✓Civic Entrepreneur Leadership Institute (developed by IUK)

✓Use new social network analysis tools

Cetys Open Strategic Doing Pack

Ed MorrisonPurdue Center for Regional Development

Cetys WorkshopNovember 4, 2008

Explore

FocusExecute

Evaluations

Action Plans

Insights

Initiatives

together

Choose what to

The Strategic Doing cycle

Explore

FocusExecute

Evaluations

Action Plans

Insights

Initiatives

together

Choose what to

Exercise 1

Exercise 2

Exercise 3

Exercise 4

Strategic Training AssetsDescribe assets that you have to meet the training needs of

employees and employers in the short term

Workshop Exercise 1:Map Assets: Explore

Strategic Outcomefor us as an “innovation network”

Describe the outcome in three years

Strategic Collaborations Describe at least three strategic partners that can collaborate to accomplish this

outcome

With our help, we envision we will .... 1

Workshop Exercise 2:Explore

Strategic Outcomes Strategic Outcomes describe a desired state in the future. Descriptions of the desired state should include the idea of stretch, measurable goals. What will REN look like, feel like in 3 years? What will people be doing? How will people be connecting? How will REN help transform Indiana?

“A learning community” is not as good a strategic outcome as “community that accelerates innovation in rural communities across regions.”

Strategic Collaborations

Strategic Collaboration describes the type of partnerships we need to achieve our Strategic Outcomes. More specific descriptions will provide clarity to “who should be at the table”.

Explore

FocusExecute

Evaluations

Action Plans

Insights

Initiatives

together

Choose what to

Exercise 1

Strategic Initiatives for RENREN SMART Goals

How should we measure our progress? How will we know we will be successful?

To achieve our strategic outcomes, we will (do what?)...

Workshop Exercise 2:Focus

Strategic Activities and Initiatives

Strategic Outcomes are just words until we describe what we will actually do to achieve our outcomes. Strategic activities and initiatives (or projects) describe what we will do together.

We still need to be more specific though. We need to mark the path forward with some SMART goals -- or road markers.

SMART Goals SMART Goals are simple, measurable, aggressive, relevant and time sensitive. They are milestones to mark our path.

So a SMART Goal might be: By 2010, we will expand our on-line professional support to XXX members.

In this exercise, focus on what we need to measure to keep us focused on our path ahead.

Explore

FocusExecute

Evaluations

Action Plans

Insights

Initiatives

together

Choose what to

Exercise 1

Workshop Exercise 3:Align

Our Strategic Outcome:

Time frame What Who

In the next 6 months

In the next 3 months

In the next 30 days

Next week

Thank you!

To learn more:

Purdue Center for Regional Developmenthttp://pcrd.purdue.edu

I-Openhttp://i-open.org

Cetys Mexico 2

firmsstage

4and clustersprovides

partnerssupports

worldtraded

collaboratebrainpower21

12dependency

networksbrainpower21

innovationnetworksbrainpower21

Business

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