Cetys Mexico 2
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Transcript of 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)
1
Rest of the
World
Traded
Businesses
Local Businesses
Purchases and paychecks
Your economy
Another
region
Brain Drain and
Purchases
Sales
3
2
1
2
3
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
1
Rest of the
World
Traded
Businesses
Local Businesses
Purchases and paychecks
Your economy
Another
region
Brain Drain and
Purchases
Sales
3
2
1
2
3
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
1
Rest of the
World
Traded
Businesses
Local Businesses
Purchases and paychecks
Your economy
Another
region
Brain Drain and
Purchases
Sales
3
2
1
2
3
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
1
Rest of the
World
Traded
Businesses
Local Businesses
Purchases and paychecks
Your economy
Another
region
Brain Drain and
Purchases
Sales
3
2
1
2
3
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
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 little background...
A little background...
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
grow
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
Brainpower21 Century Talent
InnovationEntrepreneurship
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/
Brainpower21 Century Talent
InnovationEntrepreneurship
Networks
BrandingStories
Quality, Connected
Places
CivicCollaboration
Innovative Businesses
Cre
ati
ve
Pe
op
le
Dyn
am
ic Clu
sters
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
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
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
Brainpower21 Century Talent
InnovationEntrepreneurship
Networks
BrandingExperiences
Quality, Connected
Places
CivicCollaboration
Part 1: Finding the New Pathways:Workforce Leadership in the Age of Networks
Brainpower21 Century Talent
InnovationEntrepreneurship
Networks
BrandingExperiences
Quality, Connected
Places
CivicCollaboration
Here’s a simple definition of Brainpower
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
12
4 Years of
College
One
Career
K through
12
One
Career
Our Starting Point: Our Grandfather’s pathways are too rigid, too simple or wrong
K through
12
4 Years of
College
One
Career
K through
12
One
Career
Here’s a new Brainpower base map
K through
12
Dependency
Cycle
Careers
Working
poor
$10.00per hour
2 years
Certificates
4 years
Pre-
K
Entry
level
Old, rigid thinking produces too many people below the line.
K through
12
Dependency
Cycle
Careers
Working
poor
$10.00per hour
2 years
Certificates
4 years
Pre-
K
Entry
level
Old, rigid thinking produces too many people below the line.
K through
12
Dependency
Cycle
Careers
Working
poor
$10.00per hour
2 years
Certificates
4 years
Pre-
K
Entry
level
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
Work
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
Forum
Open Source Economic Development develops networks with tight cores and
open boundaries
Forum
Open Source Economic Development develops networks with tight cores and
open boundaries
Forum
Open Source Economic Development develops networks with tight cores and
open boundaries
Forum
Part 2: Building Entreprenuership and InnovationNetworks
Brainpower21 Century Talent
InnovationEntrepreneurship
Networks
BrandingExperiences
Quality, Connected
Places
CivicCollaboration
Part 2: Building Entreprenuership and InnovationNetworks
Brainpower21 Century Talent
InnovationEntrepreneurship
Networks
BrandingExperiences
Quality, Connected
Places
CivicCollaboration
Time
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
Supports critical mass of smart people
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
Entrepreneurship Strategies
Supporting Emerging Entrepreneurs
• Regional Business Plan Competition
• Entrepreneurship Business Information Network (eBIN)
• Entrepreneurship Support
Entrepreneurship Strategies
Building Support Organizations
• Regional Angel Investor Network
• Wealth Transfer/Community Development Venture Capital Fund
Entrepreneurship Strategies
Encouraging Communities to Be “Entrepreneur-Friendly”
• Energizing Entrepreneurship
• Entrepreneurship & Innovation Compact
Entrepreneurship Strategies
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
Supports critical mass of smart people
Adds new firms to technology clusters
from new starts and spin-outs
Provides R&D partners
Supports critical mass of smart people
Creates wealth to expand
investment
Provides training, technology support to clusters
Source: Ed Morrison and I-Open
Part 3: Building The Capacity to Collaborate
Brainpower21 Century Talent
InnovationEntrepreneurship
Networks
BrandingExperiences
Quality, Connected
Places
CivicCollaboration
Part 3: Building The Capacity to Collaborate
Brainpower21 Century Talent
InnovationEntrepreneurship
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
Chamber
Chamber
County
County
County$
$
$
BusinessInvestors
$
County ED
County ED
WorkforceInvestment
Board
ThinkTec
Low Country
Mfg.
Port
MUSC
Defense Industries
MarineSciences
Other Local and Chamber ED
Activities
Tourism/ CVB
Education Foundation
Environmental Groups
COG
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
Chamber
Chamber
County
County
County$
$
$
BusinessInvestors
$
County ED
County ED
WorkforceInvestment
Board
ThinkTec
Low Country
Mfg.
Port
MUSC
Defense Industries
MarineSciences
Other Local and Chamber ED
Activities
Tourism/ CVB
Education Foundation
Environmental Groups
COG
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;
Hub
Boundary Spanner
Knowledge Person;
Hub; Influencer
Peripheral
Person
Information
Broker
Knowledge
Person
Positive
conversations
Negative
conversations
Years
Prosperity
Index
People move in the direction of their conversations...
Strategic doing guides these conversations
Today
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
Low High
High
Leadership Direction
Civic Deliberation
Low
Low High
High
Apathy
Leadership Direction
Civic Deliberation
Low
Low High
High
Apathy
ProcessParalysis
Leadership Direction
Civic Deliberation
Low
Low High
High
Apathy
ProcessParalysis
Back RoomPolitics
Leadership Direction
Civic Deliberation
Low
Low High
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
Step 1: Create a neutral civic space
✓ Form a core team with someone with “convening power”
➡ College and university presidents
➡ Community foundations
➡ Health system executives
Step 1: Create a neutral civic space
✓ Find a physically neutral space
➡ Colleges and universities
➡ Libraries
➡ Community centers
Step 1: Create a neutral civic space
✓ 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
Align
FocusExecute
Evaluations
Action Plans
Insights
Initiatives
Develop ideas about what we can do
together
Choose what to
do
Identify and align resources to
specific initiatives
Execute and measure results
Strategic Doing: People move in the direction of their conversations
Explore
Align
FocusExecute
Evaluations
Action Plans
Insights
Initiatives
Develop ideas about what we can do
together
Choose what to
do
Identify and align resources to
specific initiatives
Execute and measure results
Strategic Doing: People move in the direction of their conversations
Explore
Align
FocusExecute
Evaluations
Action Plans
Insights
Initiatives
Develop ideas about what we can do
together
Choose what to
do
Identify and align resources to
specific initiatives
Execute and measure results
Strategic Doing: People move in the direction of their conversations
Explore
Align
FocusExecute
Evaluations
Action Plans
Insights
Initiatives
Develop ideas about what we can do
together
Choose what to
do
Identify and align resources to
specific initiatives
Execute and measure results
Strategic Doing: People move in the direction of their conversations
Explore
Align
FocusExecute
Evaluations
Action Plans
Insights
Initiatives
Develop ideas about what we can do
together
Choose what to
do
Identify and align resources to
specific initiatives
Execute and measure results
Strategic Doing: People move in the direction of their conversations
Explore
Align
FocusExecute
Evaluations
Action Plans
Insights
Initiatives
Develop ideas about what we can do
together
Choose what to
do
Identify and align resources to
specific initiatives
Execute and measure results
We move around the cycle with a Strategic Doing Pack of workshop exercises
76
Explore
Align
FocusExecute
Evaluations
Action Plans
Insights
Initiatives
Develop ideas about what we can do
together
Choose what to
do
Identify and align resources to
specific initiatives
Execute and measure results
We move around the cycle with a Strategic Doing Pack of workshop exercises
Exercise 1
Exercise 2Exercise 376
Exercise 4
StrategicDoing Forum
StrategicDoing Forum
StrategicDoing Forum
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
Align
FocusExecute
Evaluations
Action Plans
Insights
Initiatives
Develop ideas about what we can do
together
Choose what to
do
Identify and align resources to
specific initiatives
Execute and measure results
The Strategic Doing cycle
81
Explore
Align
FocusExecute
Evaluations
Action Plans
Insights
Initiatives
Develop ideas about what we can do
together
Choose what to
do
Identify and align resources to
specific initiatives
Execute and measure results
The Strategic Doing cycle
Exercise 1
Exercise 2
Exercise 3
81
Exercise 4
Strategic Training AssetsDescribe assets that you have to meet the training needs of
employees and employers in the short term
1
2
3
4
5
Workshop Exercise 1:Map Assets: Explore
82
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
2
3
4
5
Workshop Exercise 2:Explore
83
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”.
84
Explore
Align
FocusExecute
Evaluations
Action Plans
Insights
Initiatives
Develop ideas about what we can do
together
Choose what to
do
Identify and align resources to
specific initiatives
Execute and measure results
The Strategic Doing cycle
Exercise 1
Exercise 2Exercise 3
85
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?)...
1
2
3
4
5
Workshop Exercise 2:Focus
86
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.
87
Explore
Align
FocusExecute
Evaluations
Action Plans
Insights
Initiatives
Develop ideas about what we can do
together
Choose what to
do
Identify and align resources to
specific initiatives
Execute and measure results
The Strategic Doing cycle
Exercise 1
Exercise 2Exercise 3
88
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
89
Thank you!
To learn more:
Purdue Center for Regional Developmenthttp://pcrd.purdue.edu
I-Openhttp://i-open.org