Presentation is loading. Please wait.

Presentation is loading. Please wait.

©2007 ViTAL Economy, Inc. Executive Overview 1 Stay cool Southern Illinois: Garden of the Gods Readiness Assessment Executive Overview December 14, 2007;

Similar presentations


Presentation on theme: "©2007 ViTAL Economy, Inc. Executive Overview 1 Stay cool Southern Illinois: Garden of the Gods Readiness Assessment Executive Overview December 14, 2007;"— Presentation transcript:

1 ©2007 ViTAL Economy, Inc. Executive Overview 1 Stay cool Southern Illinois: Garden of the Gods Readiness Assessment Executive Overview December 14, 2007; revised Feb 14, 2008 CONNECT SI ViTAL Economy Alliance Frank Knott, Project Lead; Stan Halle, Senior Editor; Jim Haguewood, Rob Beynon, & Neil Gamroth, Principal Economic Researchers

2 ©2007 ViTAL Economy, Inc. Executive Overview 2 Terms of Use Limited License: Subject to these Terms of Use, we grant to the local sponsor and its funding partners for this ViTAL Economy Readiness Assessment a non-exclusive, non- transferable, limited license to access and use the information, text, graphics, data, and other content in this report for their personal and noncommercial use. You may also incorporate portions of the content of this report in documents and other works of authorship that are mainly the product of your own intellectual effort, and may distribute and disseminate those documents and other works, but only if neither you nor anyone else receives any payment or other value that is primarily attributable to the content used. Proprietary Rights: You acknowledge that the content of this report is the property of ViTAL Economy, Inc. and is protected by copyright, trademark and other intellectual property laws. You agree not to use this content for any unlawful or unauthorized purpose, or in any manner that would harm the reputation of ViTAL Economy, Inc. or its partners. You agree not to use any name, emblem, logo, or trademark of ViTAL Economy, Inc. in any manner, except in the form of attribution and copyright notice required by these Terms of Use. Copyright Notice: On any print-out, download, or copy of this content you make that does not already include a copyright notice, you agree to include a copyright notice as follows: "Copyright © 2007, ViTAL Economy, Inc. All rights reserved. Executive Overview

3 ©2007 ViTAL Economy, Inc. Executive Overview 3 Executive Overview Table of Contents READINESS ASSESSMENT (RA) Executive OverviewSlide # Letter to Connect SI Leaders.…………………………………………..…. 4 A.Understanding the Readiness Assessment Process..………….. 6 B.The SI Opportunity and Dilemma ………………………………….. 14 C.State, National and Global Trends and Implications for SI..……. 21 D.Assessing SIs Climate to Support Growth …………………………. 25 E.Community of Interest (COI) Perspective and Goals ……….…… 36 F.Connect SI: Crossing the Boundaries ……………………….……. 49 G.How Does SI Organize to Succeed? ………………………………. 56 H.Call to Excellence…a Destiny of Prosperity! ………………….… 61 Stay cool

4 ©2007 ViTAL Economy, Inc. Executive Overview 4 Letter to the Reader This Readiness Assessment (RA) Executive Summary provides a condensed view of the readiness of Southern Illinois (SI) to successfully support and implement the Connect SI Phase 2 multi-year economic development strategy. It summarizes the key findings contained in the detailed RA issued to Connect SI on December The RA is a multi-faceted assessment of SI economic history and current conditions. It involves more than 235 interview sessions with 940+ business, public sector, labor union, community and not-for-profit leaders living and working in SI. It includes a review of over 250 studies of the SI economy. The RA highlights global, national and regional trends critical to understand as Connect SI proposes a five year strategy for transforming the SI economy by The RA assessment process took place between Sept Nov The RA is an independent 360º view of all aspects of the SI economy designed to provide subjective and objective assessments of community vitality as well as economic opportunity. It enables uncomfortable but necessary realities to be reviewed openly, so that Connect SI leaders can plan for long-term success. The RA is the work product of ViTAL Economy, not Connect SI. The results of the RA provide both opportunities and challenges for SI. Opportunities: SI indigenous resources are a perfect match for current global and national market trends. SI has the opportunity to grow its economy at an annual growth rate of 3.85% by 2012 versus its 1.34% growth rate over the past 25 years, resulting in $2 billion in new annual wages, $3.6 billion rise in annual GDP, 43,000+ new high wage jobs, 10,000 citizens lifted out of poverty and over $162 million more annual state and local tax revenue. Challenges: SI has a major dilemma. There is a need to build a better climate of trust so that meaningful collaboration increases and the risk environment for visionary leaders improves. A pervasive willingness to accept mediocrity is evidenced by a lack of excellence in many aspects of SI life. There is an overarching belief that the cavalry is coming despite evidence to the contrary. Policies continue to prioritize & fund initiatives that emphasize declining sectors of the current economy rather than expanding into 21st century economic realities. As discussed in this RA, SI has the opportunity to become a regional gateway for Americas Heartland to the global economy and for the global economy to Americas Heartland, if and only if SI chooses to believe it can. Frank Knott, President ViTAL Economy, Inc.

5 ©2007 ViTAL Economy, Inc. Executive Overview 5 5 We See A Bountiful Southern Illinois Vital Economys View: We have fallen in love with SI. We see it as the land of the Garden of the Gods Prime central North American location in close proximity to over 11M people 425,000 population that produces a $17.6B economy equivalent to a major metro-area Multi-directional Interstate highway, waterway and rail road infrastructure Major research university, robust community college system and workforce development assets Modern and growing healthcare facilities Large national forest and numerous unique tourist attractions Extensive mineral, agricultural and unique natural environmental assets Rich soils, mild climate and abundant water resources Numerous innovative and leading industry companies and an entrepreneurship spirit Special, welcoming, talented and caring people who want better for their families Young and old who see SI for the treasure it is, and desire stewardship that reflects its value ViTAL Economy Conclusion: Southern Illinois has more assets at its disposal than any other region it has advised in 15 years ViTAL Economy Conclusion: Southern Illinois has more assets at its disposal than any other region it has advised in 15 years

6 ©2007 ViTAL Economy, Inc. Executive Overview 6 Southern Illinois "Garden of the Gods" Understanding the Readiness Assessment Process Section A: Understanding the Readiness Assessment Process Executive Overview The What, Why and How of a Readiness Assessment Stay cool

7 ©2007 ViTAL Economy, Inc. Executive Overview 7 Readiness Assessment The Readiness Assessment is a 360° review of an economic region from two perspectives, including: 1.Community internal opinions and impressions 2.Outside-in perspective based upon years of experience and research in other rural communities and a review of national & global trends relative to SI asset mapping results ( ) Internal Insights + External Insightsx VE Analysis = Interviews Local Research/Reports 3 rd Party Observations External Research Connect SI 20-County Economic Strategy Readiness Assessment Phase 2 COI Strategies Greater Wabash COI Southern Five COI Southeastern COI Greater Egypt COI Healthcare COI Network Provider COI

8 ©2007 ViTAL Economy, Inc. Executive Overview 8 Readiness Assessment Process The Readiness Assessment is built from the ground up Assess Economic Development Needs & Local Leadership Vision COI Milestone Meetings Connectivity Assessment Assess Climate of Innovation Livable Community Assessment State, Natl, Global Trends Primary & Secondary Research Assess Knowledge, Service, Infrastructure, Finance, Leadership Gaps Long Term Initiative Readiness to Connect & Collaborate Assess Visionary Leadership Determine Public Sector & NGO Support Determine Private- Sector Support Measure Climate of Success Ability & Will to Collaborate & Fund at Local Level Connect SI Phase 2 Multi-Year Initiative Developed High-Value Jobs Accelerated GDP Growth Transformed Economy SI RA Components

9 ©2007 ViTAL Economy, Inc. Executive Overview 9 The Job of the RA Provide a mirror that reflects to leaders what those they lead are thinking and saying Highlight the opportunities that are before you Communicate an unvarnished view of the challenges Determine if the key ingredients are in place to achieve success, despite the perceived difficulty of the challenges Develop the RA as a qualifying filter for prioritizing choices for the completion and launch of the Connect SI long-term strategy See: RA Chapter 6

10 ©2007 ViTAL Economy, Inc. Executive Overview 10 Readiness Assessment Process in Context June 2006 V I S I O N & G O A L S Year One Year Two PHASE 1 COI Launch COI Milestone Meetings & Goal Setting Asset Mapping Economic Scenario Models Readiness Assessment PHASE 2 Industry Cluster Analysis & Strategies Integrated Finance Strategy Youth Engagement Strategy Collaborative Leadership Institute Innovation Ecosystem Action Implementation Through 2012 You Are Here Now! * Phase 1 Strategy Approved Phase 2 Launch 2008 July 2007 July 2008

11 ©2007 ViTAL Economy, Inc. Executive Overview 11 ACTUAL Client Communities Success Since 1992 (Average) 30-40% increase in regional job base over five years 25-35% growth in average wage 30-40% reduction in rate of poverty 20-25% of lowest wage jobs raised by at least $5,000/year 20-30% increase in families with health insurance 35-50% increase in average wage of new jobs 50-90% increase in annual rate of new business formation Above average acceleration in growth of gross regional product Expanded KBE based innovation economy enabling broadband expansion Improved economic diversification and lower economic risk Increased access to capital for financing of innovation

12 ©2007 ViTAL Economy, Inc. Executive Overview 12 Connect SI – Overall Logic Flow Asset Maps help us understand what makes SI unique! Opportunity Realized Measures of Success Short / Long Term Wins Connect the Dots Barriers Barrier Strategies Local Opportunity Local Innovation Global Innovation Industry / State Best Practices Innovation Who We Are Knowledge The foundation of sustainable economic growth is building on what makes a region unique, NOT copying what others are doing Global Opportunity

13 ©2007 ViTAL Economy, Inc. Executive Overview 13 Asset Maps Focus Opportunity Analysis Enables SI to define how indigenous resources make it unique and special Identifies resources in economic sub-regions to share across SI Helps to filter, prioritize and focus competing economic strategies Defines what industry clusters can be home grown based on local assets Identifies industry value chain assets to be connected across SI Region Natural Human Knowledge Cultural Geographic Excellence Infrastructure Government Natural Human Knowledge Cultural Geographic Excellence Infrastructure Government Map Indigenous Assets + + = = Agriculture Healthcare Tourism Energy Manufacturing Education KBE Firms Logistics Agriculture Healthcare Tourism Energy Manufacturing Education KBE Firms Logistics Map Industry Assets Priority industry clusters with the greatest ability to deliver economic growth goals See: RA Chapter 2

14 ©2007 ViTAL Economy, Inc. Executive Overview 14 What COIs Learned from Asset Maps SIUs 138 year history with students from over 100 cultures positions SI to access expanding global markets which are seeking access to U.S. markets SIUs research centers-of-excellence in energy, environment, materials and neuroscience perfectly align with global priorities for market growth SI has a more significant base of workforce development and research university assets to respond to the 10 million worker shortage than other U.S. rural economies There are more innovation, incubation and entrepreneur assets in SI than anyone imagined; this positions SI to build an Innovation Ecosystem fueling KBE growth Intermodal logistics assets and heartland location align with the redevelopment and expansion of inland waterway logistics connecting to Midwest logistic gateways Regional tourism assets are aligned with authentic and active lifestyle tourism trends involving million annual tourists in the U.S. SIs region has the right mix of assets for attracting the financially independent active retirement demographic, which is fueling the growth of senior living opportunities SI has a significant base of diversified alternative and traditional energy assets, which if collaboratively organized, provide a basis for a diversified energy sector Asset Mapping proves SI already has what it needs to drive its own economic destiny See: RA Chapter 2

15 ©2007 ViTAL Economy, Inc. Executive Overview 15 Southern Illinois "Garden of the Gods" The SI Opportunity and Dilemma Section B: The SI Opportunity and Dilemma This section compares what SI has going for it versus whats in the way painting the picture of the enormous opportunity SI has to transform its economy Stay cool

16 ©2007 ViTAL Economy, Inc. Executive Overview 16 Regional Assets Heartland of America location, equidistant to 2/3 of U.S. markets, central to economic expansion of the Americas SIU - a major R&D university with 138 years of history serving students from over 100 world cultures supports global KBE growth Robust education and training resources position SI for global workforce training opportunity Mild climate, unique natural environment, active lifestyle assets, arts and culture amenities, and attractive quality of life characteristics are important factors for KBE, tourism and senior living growth Inter-modal logistics, transportation and distribution resources have a strong foundation in SI SI has plentiful legacy and alternative- energy assets. SI is a coal leader and is strong in 2 of 4 areas of projected alternative energy growth by 2030 Heartland of America location, equidistant to 2/3 of U.S. markets, central to economic expansion of the Americas SIU - a major R&D university with 138 years of history serving students from over 100 world cultures supports global KBE growth Robust education and training resources position SI for global workforce training opportunity Mild climate, unique natural environment, active lifestyle assets, arts and culture amenities, and attractive quality of life characteristics are important factors for KBE, tourism and senior living growth Inter-modal logistics, transportation and distribution resources have a strong foundation in SI SI has plentiful legacy and alternative- energy assets. SI is a coal leader and is strong in 2 of 4 areas of projected alternative energy growth by 2030 The BIG SI Opportunity >$2 Billion New Annual Wages >$2 Billion New Annual Wages 41,461 Existing Jobs >$5,000/Yr 41,461 Existing Jobs >$5,000/Yr 27,298 New Hi-Wage Jobs 27,298 New Hi-Wage Jobs $642 Million New KBE Activity 1,600+ Firms $642 Million New KBE Activity 1,600+ Firms 4,500+ Families with Healthcare Coverage 4,500+ Families with Healthcare Coverage Lift 10,000 Citizens Out Of Poverty Lift 10,000 Citizens Out Of Poverty $200 Million Information Technology Investment $200 Million Information Technology Investment Global & Natl Trends Global growth presents SI with opportunity to accelerate its economic growth from 1.34% to 3.85% per year KBE activity now accounts for 50% plus of GDP growth, 3xs the growth in occupations and pays double the average wage of other jobs By 2010, the U.S. will have a 10M worker shortfall requiring strong workforce development resources 3 of 4 factors required to support KBE activity in rural America are SI strengths 58% of all U.S. and global tourists want authentic active, historic and cultural experiences (50-80 million) Logistics is a $900 billion U.S. industry in a global $3.43 trillion market growing at 10-15% per year 74% global increase in coal consumption, 138% in coal-to-liquid and 66% in bio-fuels by 2030 Global growth presents SI with opportunity to accelerate its economic growth from 1.34% to 3.85% per year KBE activity now accounts for 50% plus of GDP growth, 3xs the growth in occupations and pays double the average wage of other jobs By 2010, the U.S. will have a 10M worker shortfall requiring strong workforce development resources 3 of 4 factors required to support KBE activity in rural America are SI strengths 58% of all U.S. and global tourists want authentic active, historic and cultural experiences (50-80 million) Logistics is a $900 billion U.S. industry in a global $3.43 trillion market growing at 10-15% per year 74% global increase in coal consumption, 138% in coal-to-liquid and 66% in bio-fuels by = = CSI 2012 Goals* * These Connect SI Goals were announced to the Public 26 Feb 2007

17 ©2007 ViTAL Economy, Inc. Executive Overview 17 Source: State of Working Illinois, by Northern Illinois University (Nov 2005); 21st Century Workforce (May 2004); IMF; ViTAL Economy research Average Annual Growth Rate % 3.85% Stay the Course vs. Change the Course AAGR Connect SI Goals AAGR Worldwide USAState-wideSouthern Illinois 1.34% 2.19% 3.14% 5.62% 2012: increase SIs economy by $3.6B in GDP to $21.2B, which translates into $162M in additional State and Local tax revenue 2012: increase SIs economy by $3.6B in GDP to $21.2B, which translates into $162M in additional State and Local tax revenue Result of Taking Control of SIs Destiny

18 ©2007 ViTAL Economy, Inc. Executive Overview 18 Highest % in rural region Highest poverty rate Highest unemployment rate since 09/03 Lowest % college graduates Highest % enrolled in Medicaid Highest % age 5+ with a disability #1 Highest % of population over age 65 Highest % age 65+ in poverty Highest % age 65+ with a disability Lowest % of population 0-10 Highest % age 0-17 in poverty Highest % households owner burdened #1 #4 Highest % households lack complete plumbing Highest % households lacking complete kitchen Highest % commuting to work from other IL counties Lowest % population work and live in same county Highest % households rent burdened Highest % of Adults with no High School Diploma #1 #3 #1 Source: IL Poverty Summit, 2004 Report on Illinois Poverty, Based on U.S Census or IL Dept of Employment Security data & Atlas of Illinois Poverty Spring 2003 Result Of Not Taking Control Of SIs Destiny Southern Illinois Ranking: 2004 Report on Illinois Poverty

19 ©2007 ViTAL Economy, Inc. Executive Overview 19 We lose the best and brightest, because SI adults tell our children that there will be no 21st century opportunity in SI Losing Your Future Workforce SIU and the community colleges generate an above average year old population This young population leaves the region for more attractive opportunities, despite SI having resources that should help retain them Increasing Your Burden Losing the most productive age group while increasing the resource-demanding demographic Source: U.S. Census Bureau – Table QT-P1: Age Groups and Sex: 2000 and RA Interviews Age Distribution Comparison Increasing Your Burden Losing Your Future Workforce All is not lost SI needs a Youth Retention Strategy

20 ©2007 ViTAL Economy, Inc. Executive Overview 20 Limiting mindset: willingness to accept mediocrity and lack of a sense of excellence Insufficient climate of collaboration and trust, making change very difficult Continued belief that the cavalry is coming despite proof to the contrary Losing the best and brightest youth brain drain Lack of participation in the global economy Continued focus on traditional economic sectors in decline rather than rising economic sectors Climate of economic (and community) despair Public policy reinforces & funds old economy strategies, and inhibits new ones SIs Big Dilemma: Climate of Limited Opportunity Resulted in only 1.35% AAGR for last 25 Years SIs future hangs in the balance! Fragmented and poorly leveraged Primary focus on local opportunities Insufficient # of visionary leaders Too many boundaries Issues Weighing Down SI Indigenous Resources & Innate Talents

21 ©2007 ViTAL Economy, Inc. Executive Overview 21 Less willingness to accept mediocrity Improving climate of collaboration and trust making change less difficult Losing fewer of the best and brightest Less focus on traditional economic sectors in decline Less of a climate of economic despair Public policy/funding priorities shifting SIs Potential: Climate of Unlimited Opportunity Linked across the region & highly leveraged Active visionary leaders Collaboration abounds Boundaries are being crossed New behaviors Global focus Issues Weighing Down SI Indigenous Resources & Innate Talents Results in over 3.85% or better AAGR for NEXT 25 Years Growth & prosperity realized!

22 ©2007 ViTAL Economy, Inc. Executive Overview 22 Southern Illinois "Garden of the Gods" State, National and Global Trends and Implications for SI Section C: State, National and Global Trends and Implications for SI Translating the most relevant trends into potential new jobs for the region Stay cool

23 ©2007 ViTAL Economy, Inc. Executive Overview 23 Chapter 1: State, National & Global Trends 1.01 Globalization: The World is Flat 1.02 eCommerce & Connectivity 1.03 KBE and Innovation 1.04 Livable Communities 1.05 Transformation of U.S. Economy 1.06 Manpower & Immigration 1.07 Aging Population 1.08 Tourism 1.09 Logistics, Transportation & Distribution 1.10 Energy 1.11 Sustainable Economies 1.12 Conclusions Rural communities typically focus on their local geographic area and have limited insight into the larger world around them. This chapter provides key trend information and what it means for Southern Illinois. Each of these trends represents potential opportunities for Connect SI. FYI: From the RA Itself

24 ©2007 ViTAL Economy, Inc. Executive Overview 24 Potential SI Jobs by Sector (1 of 2) Global growth opens up opportunities to expand SI economy beyond its traditional growth rate 10 million U.S. worker shortage is an opportunity for SI workforce development resources Growth in services exports enable SI to move away from uncompetitive legacy economic activities Global growth opens up opportunities to expand SI economy beyond its traditional growth rate 10 million U.S. worker shortage is an opportunity for SI workforce development resources Growth in services exports enable SI to move away from uncompetitive legacy economic activities ICT investments contribute 33% to U.S. productivity growth…this validates importance of NPCOI SIs 64% increase in broadband access can better leverage six-fold increase in e-commerce activity 4 of 5** factors in rural KBE growth are SI strengths need to be leveraged for SI economic growth Livable community assets present in SI are an attraction asset for KBE, Senior Living and Tourism Alternative energy, global warming and greening of society is creating innovation opportunities ICT investments contribute 33% to U.S. productivity growth…this validates importance of NPCOI SIs 64% increase in broadband access can better leverage six-fold increase in e-commerce activity 4 of 5** factors in rural KBE growth are SI strengths need to be leveraged for SI economic growth Livable community assets present in SI are an attraction asset for KBE, Senior Living and Tourism Alternative energy, global warming and greening of society is creating innovation opportunities See: RA Chapter 1 **Five Factors are: High Quality Workforce College or Universities Local Amenities Transportation Infrastructure Size KBE 8,023 New Jobs KBE 8,023 New Jobs Global Workforce Opportunities 18,750 New Jobs Global Workforce Opportunities 18,750 New Jobs

25 ©2007 ViTAL Economy, Inc. Executive Overview 25 Potential SI Jobs by Sector (2 of 2) Climate of Economic Opportunity = an additional 10,210 new jobs NEW GRAND TOTAL = 50,789 Jobs (vs. 27,298 Jobs Feb 07) Climate of Economic Opportunity = an additional 10,210 new jobs NEW GRAND TOTAL = 50,789 Jobs (vs. 27,298 Jobs Feb 07) See: RA Chapter 1 77 million retiring baby boomers present an affluent senior living growth opportunity for SI Preferred tourism growth sectors indicate SI is positioned for accelerated tourism growth SI energy assets and knowledge are in the sweet spot of energy priorities for growth Significant transportation labor shortages are moving transportation and distribution centers from the coast to the center of North America. SI location and logistics assets position it for growth Senior Living 3,676 New Jobs Senior Living 3,676 New Jobs Energy & Mining 5,680 New Jobs Energy & Mining 5,680 New Jobs Tourism 4,450 New Jobs Tourism 4,450 New Jobs Log/Trans//Dist 1,675 New Jobs Log/Trans//Dist 1,675 New Jobs

26 ©2007 ViTAL Economy, Inc. Executive Overview 26 Southern Illinois "Garden of the Gods" Assessing SIs Climate to Support Growth Section D: Assessing SIs Climate to Support Growth There is good news and bad news about what SI has in place focused on Enabling Environment, Innovation & Tech-Transfer, and Competitiveness. VE assessments are based on primary research (interviews), secondary research (regional, national & global studies), best practices, and our professional experience Stay cool

27 ©2007 ViTAL Economy, Inc. Executive Overview 27 Enabling Environment: VE Assessment Chapter 3 of the RA assesses several Enabling Environment Criteria (summarized here) Climate of Collaboration Regulatory, Policy & Governance Business Climate Broadband Access & Penetration Livable Communities Adaptability to Change Global Focus Visionary Leadership Depth & Breadth Climate of Opportunity WEAK IMPROVING GOOD AVERAGE STRONG See: RA Chapter 3

28 ©2007 ViTAL Economy, Inc. Executive Overview 28 Enabling Environment: Implications Lack of collaboration is hampering prosperity m Creates a climate of distrust and conflict m Results in an inability to fund or achieve project success due to lack of resources Unattractive business climate for retention and attraction m ILs court system is rated as unreasonable to business m Multiple government and taxing districts cause a confusing business environment Telecommunications expansion is a marketable opportunity m The recent expansion of broadband service, supported by a clearly defined goal is positioning SI for KBE growth and attraction SIs natural environment is not valued enough or being leveraged m The region has the largest concentration of natural environment assets in mid-America m SI is missing out on substantial tourism, senior living, KBE and other revenues Reluctance to change will perpetuate an atmosphere of dependency m The global economy is changing faster than ever before, primarily driven by innovation and technological advancements that will not wait for individuals and companies to keep pace m Rural regional economies that can effectively meet the workforce needs and business demands of a KBE economy will be the envy of others Lack of visionary leadership will keep SI on the same low-growth economic path m A larger core group of champions must step forward and lead the change for SI

29 ©2007 ViTAL Economy, Inc. Executive Overview 29 Enabling Environment: SI Citizens See the Stark Reality So many things in SI are one-person, one-business or one-organization thin Local population does not want their neighbors to be too successful SI is a risk-averse region if you are too successful, we criticize you and assume success was obtained dishonestly; if you fail you are branded as a failure for life There is a significant lack of unity across the community, including churches, local governments, schools, business interests, etc.; at the municipal level, decisions are based on emotion rather than facts We lack a vision of success we prefer to dwell on our failures Overlapping government at the local and regional level gets in the way of success. Our parochial interests win out over our economic interests People here seem to be afraid to take a chance. They have a great fear of failure. They are deeply concerned at how they will be perceived. This leads to a lack of action. It maintains the status quo If you going to be poor, this is the place to be Source: RA & EF Hutton Interviews; See: RA Chapter 3 Note: Quotes in this RA from interviews & other sources are shown as centered italics

30 ©2007 ViTAL Economy, Inc. Executive Overview 30 Fertile Ground to Change SI citizens across the Region do see the stark reality and understand what needs to change The good news: m Awareness of this reality goes far and wide m Folks, young and old, want SI, as a region, to finally deal with this The bad news: m There is a deeply held belief that neither individuals, nor SI as a whole, will change m Far too many lifelong SI residents have become numb to the decades of gradual decline in so many communities SI is at a crossroads and there are reasons for hope: m The concept of One Region-One Vision is gaining traction m There are pockets of prosperity so it can be done m Short-term wins across SI are providing further proof that the collaborative approach works building momentum is key The TIME is now; the CHOICE is yours all it takes is will and leadership If youre going to have a self-fulfilling prophecy, lets make it a great one! See: RA Chapter 3

31 ©2007 ViTAL Economy, Inc. Executive Overview 31 RA Chapter 4 provides a detailed assessment of SIs Climate for Innovation and Entrepreneurship, summarized here: Entrepreneurship Culture and Networks Financial Literacy Existence of Early Stage Capital for Startups Rate of Business Startups Partnerships and Community Outreach Technology Transfer, Licensing and Commercialization Entrepreneurship Development and Tracking Space and Facility Support Services WEAK IMPROVING GOOD AVERAGE STRONG See: RA Chapter 5 SI Innovation, Entrepreneurship & Incubation: VE Assessment

32 ©2007 ViTAL Economy, Inc. Executive Overview 32 SI Innovation, Entrepreneurship & Incubation: Implications Entrepreneurship culture and networks m Entrepreneurship is not seen as a real job this suppresses a spirit of innovation Financial literacy m Limited risk assessment capacity for KBE soft asset business startups this limits access to capital m Entrepreneurs understanding of equity & debt is low this results in poor deal flow quality Partnerships and community outreach are centered in Carbondale m A regional climate of innovation can not be achieved when the vast majority of resources are centralized Underperformance of technology transfer, licensing and commercialization m SI cannot grow regional KBE innovation firms without regional access to SIU tech-transfer assets Disconnected entrepreneurship development and tracking systems m The Regions business support services are not linked result is KBE firms leave SI or innovations die on the vine m Lack of business startup-tracking demonstrates lack of policy commitment to entrepreneurship m SI cannot manage what it cannot track or measure Limited and unconnected incubation space and facility support services m Incubation resources cannot supply diverse expertise needs of young emerging KBEs m Incubator firms are not linked to potential value-chain partners in other parts of SI m Innovation knowledge is silo-based, not shared and, therefore, not leveraged See: RA Chapter 5

33 ©2007 ViTAL Economy, Inc. Executive Overview 33 Climate of Innovation, Entrepreneurship and Incubation Climate of Innovation*: Zero-sum game mentality exists in the way of collaboration or even basic idea sharing we are fragmented, jealous and secretive and motivated by risk aversion Climate of Entrepreneurship: Entrepreneurship is not considered to be a real job Entrepreneurs exist but mostly underground Early stage capital is limited, access is not well known Research focus at SIUC: high potential for more tech transfer Entrepreneur development resources in SI are very limited Support systems for entrepreneurs need bolstering Climate of Incubation*: There are too few, unconnected incubation resources and staff have limited budgets and business experience; several incubated firms left SI to get access to a system of support SIU is one of the top 100 Research Universities in the U.S 67% of SIU business and engineering students want to stay in SI SIU presents an opportunity to address SIs KBE Worker Gap SIU is one of the top 100 Research Universities in the U.S 67% of SIU business and engineering students want to stay in SI SIU presents an opportunity to address SIs KBE Worker Gap *Source of Quotes: RA & EF Hutton Interviews; chart data from BLS; Note: quotes are shown centered in italics The KBE Worker Gap: SI is well below the State and National Averages for KBE as % of total employment 7.7% 8.5% 4.3% Gap

34 ©2007 ViTAL Economy, Inc. Executive Overview 34 Economic Growth Can Be Greatly Stimulated by Implementing an Innovation Eco-System SI Incubator, Finance & Innovation Starfish Network the KBE-Engine of Connect SI SI Entrepreneurs Served by Shared Regional Network Of Incubator Centers of Excellence Life Cycle Equity and Debt Finance Resources Global Best Practice Technical Support Teams Broadband-Enabled SI Entrepreneurs Served by Shared Regional Network Of Incubator Centers of Excellence Life Cycle Equity and Debt Finance Resources Global Best Practice Technical Support Teams Broadband-Enabled W. Frankfort Business Incubator GE Incubator Tech Transfer Dixon Springs Ag-Tech Incubator SWI Retail Incubator Edwardsville Ethanol Research Center SIU Medical School GW Incubator Coal Research Center S5 SBDC SE SBDC Entrepreneur Center Centralia EC SIUE-EC IMEC Medical Technology Incubator International Incubator See: RA Chapter 4

35 ©2007 ViTAL Economy, Inc. Executive Overview 35 SI Competitiveness: VE Assessment RA Chapter 5 provides a detailed assessment of SIs competitiveness, summarized here: Global Market Readiness Climate for Investment Attraction Workforce Knowledge Infrastructure Location Advantages Connectivity Literacy WEAK IMPROVING GOOD AVERAGE STRONG See: RA Chapter 5 The lack of Global Market Readiness is holding back the region from leveraging its Knowledge Infrastructure and Location Advantages to build a high growth economy

36 ©2007 ViTAL Economy, Inc. Executive Overview 36 SI Competitiveness: Implications Limited Global Market Participation m $1 billion export gap: 2.4% of SI GRP vs. 8.4% of the Illinois GSP participates in the global economy m Global market niches exist in energy technologies, bio-ag, intl innovation and incubation, logistics, etc. Cloudy Climate for Investment Attraction m Long history of a weak, trailing economy and reputation of inferiority limits SIs ability to attract investment m Livable community standards are a fundamental requirement for investment attraction m Targeted, consistent & authentic communications/marketing can shift the internal and external perceptions of SI Solid and Improving Workforce m SIs 66.5% labor participation rate challenges the regions growth opportunities m The incumbent workforce has a strong work ethic and desire to stay in the SI region m SIs extensive workforce development assets are positioned to help address the projected U.S. 10M worker shortfall Robust Knowledge Infrastructure m SI already has a broad array of knowledge assets, but needs to better align towards a common strategic direction m An education Center of Excellence could coalesce regional KBE resources to pursue global workforce opportunities Strong Location Advantages m SI is in a geographic sweet spot to take advantage of major trends m SIs location advantage benefits Tourism, Energy, and Transportation, Logistics & Warehousing sectors Improving Global Connectivity Readiness m SI has begun to transform its connectivity infrastructure but has low connectivity awareness and literacy m Linking NP-COI with all industry clusters can help identify applications to increase competitiveness and market-share Only as a unified region can SI leverage the critical mass already in place to become a formidable force on the global stage Only as a unified region can SI leverage the critical mass already in place to become a formidable force on the global stage See: RA Chapter 5 GRP = Gross Regional Product GSP = Gross State Product

37 ©2007 ViTAL Economy, Inc. Executive Overview 37 Southern Illinois "Garden of the Gods" Community of Interest (COI) Perspective and Goals Section E: Community of Interest (COI) Perspective and Goals Laying out the key demographic and economic picture of SI as a whole and acknowledging the significant work from each of the six Communities of Interest (COIs), as well as Whats In It for Me? Step back and think about SI as a major metropolitan community made up of individual neighborhoods it is the uniqueness of each neighborhood, when combined to make a large whole, that creates a unique sense of personality that we call Minneapolis, Memphis, Boston, San Francisco, etc. When you says these names and close your eyes certain images, impressions, and characteristics come to mind. It is called the Voice and Personality of a Brand this is where SI needs to go Stay cool

38 ©2007 ViTAL Economy, Inc. Executive Overview 38 Regional Perspective… SI is a Potential Giant if it Acts as a Unified Region Population Over 425,000 residents in the region, comparable to a single major city m SI represents 3.3% of total IL population m Median age higher in SI (37.5) than state (34.7) m 61% of population is in Greater Egypt making SI unbalanced Cumulative Population Trend m SI = (-3.0%) Declined! m Illinois = +11.6% m U.S. = +30.5% Labor Force Region average wages are almost 40% lower than the state average m SI region has a 66.5% labor force participation rate, 10% below Illinois m Meaning that 24,995 are employable, but for one reason or another they are not employed Economy SI has a $17.6B economy m SI economy is 3.47% of State GSP m Largest sector of SI GRP is government 20% (11% IL) m 64% of SI GRP is in Greater Egypt m 3% of SI landmass is urban & built Exports Exports are only 1% of state level at $420M m 8.4% of ILs GDP is exports vs. only 2.4% for SI m Matching ILs level would mean +$1.06B See: RA Chapter 6 Sources: U.S.Census Bureau, BEA, & Dept of Commerce 2006 Government Transfer Payments as % of Total Earnings SI IL U.S. Cumulative Population Trend (1980 – 2005) 30.5% 11.6% (-3.0%)

39 ©2007 ViTAL Economy, Inc. Executive Overview 39 Only 46% of SI Personal Income is Generated by Private Sector Employment Conclusions: SI cannot afford the community and economy it wants A 30% increase in private vs. public sector earnings is required to equal U.S. Low % of at-risk sources of personal income creates a risk-averse environment 54% 33% 36% 46% 67% 64% Increasing private sector % of personal income generation is critical to building a climate of innovation Increasing private sector % of personal income generation is critical to building a climate of innovation

40 ©2007 ViTAL Economy, Inc. Executive Overview 40 SI Needs Investment Attraction: Exports SI gap in exports (vs. Illinois) is its biggest opportunity to fill the pool $$$ IMPORT ACTIVITIES Take $ Out bring in goods and services to serve the needs and desires of the community; but capital flows out EXPORT ACTIVITIES* Helps Fill the Pool bring money into the region by selling goods and/or services of value and importance to national or international markets SI Economy *Exports are the only source of new capital that the region can use to pay for goods and services to meet its needs and desires $$$ CONSUMER SERVICES SECTOR Circulates $ Locally activities that directly and indirectly address the consumption demands of the local residents $$$ 11% 8.4% 2.4%

41 ©2007 ViTAL Economy, Inc. Executive Overview 41 Connect SI: Phase 1 Roadmap See: RA Chapter 6 Greater Egypt COI Strategy Southeastern COI Strategy Southern Five COI Strategy Greater Wabash COI Strategy Phase 1 Outcomes GIS Asset Maps Broadband Strategy Economic Benchmarks Regional Economic Strategy Healthcare Strategy Regional Economic Framework Five-Year Measurable Goals Implementation & Funding Plan GIS Mapping Team Supports COIs Connect SI Regional CED COI Strategy Healthcare Providers COI Strategy Network Providers COI Strategy VALUE-ADDED RESEARCH: Regional Economic Model, Healthcare Economic Model, Incubation, Research Park and Entrepreneurship Assessment, 20-county Readiness Assessment >$2 Billion New Annual Wages 41,461 Existing Jobs >$5,000/Yr 27,298 New Hi-Wage Jobs $642 Million New KBE Activity 1,600+ Firms Families with Healthcare Coverage Lift 10,000 Citizens Out Of Poverty $200 Million Information Technology Investment 2012 Goals

42 ©2007 ViTAL Economy, Inc. Executive Overview 42 COI Perspective: Southern 5 Challenges: Lack of skilled workforce for current and future jobs Lack of cooperation, collaboration, and regionalism Does the region have the assets to grow and retain tech based jobs? No sense of urgency K-12 performance Opportunities: Geography, logistics and transportation Community College System and SIU Local healthcare availability Tourism, bed & breakfast, Shawnee National Forest, historical assets, wineries Agribusiness opportunities (e.g., ethanol) Sense of Urgency Changing our mindset how we view poverty! Stop the bleeding put a triage process in place for the economy, now! How will your children grow up and where will they go? Sense of Urgency Changing our mindset how we view poverty! Stop the bleeding put a triage process in place for the economy, now! How will your children grow up and where will they go? S5 COI 2012 Goals $90.3 M in New Wages 784 New 4,863 Existing Jobs Raised by $5,000/Year 522 jobs at New Average Wage $36,517 Increase Youth Retention: 6.9% to 7.2% (15-19yrs) 18.7% to 21.5% (20-34yrs) Reduce Poverty From 14.5% to 12.5% S5 COI 2012 Goals $90.3 M in New Wages 784 New 4,863 Existing Jobs Raised by $5,000/Year 522 jobs at New Average Wage $36,517 Increase Youth Retention: 6.9% to 7.2% (15-19yrs) 18.7% to 21.5% (20-34yrs) Reduce Poverty From 14.5% to 12.5% Population58,66463,000 Total Employed24,31726,856 Average Wage$27,959$37,591 Total Wages$679.9M$1.01B Regional Economic Benchmarks See: RA Chapter 6

43 ©2007 ViTAL Economy, Inc. Executive Overview 43 COI Perspective: Southeastern Sense of Urgency We MUST stop the decline, we are asleep at the wheel. Shock Value: If you are going to be poor, this is the place to be! What is our legacy going to be for our children? There is declining infrastructure, tax base declining, demographics getting worse WHAT CAN BE? We need to paint a compelling picture of the future Sense of Urgency We MUST stop the decline, we are asleep at the wheel. Shock Value: If you are going to be poor, this is the place to be! What is our legacy going to be for our children? There is declining infrastructure, tax base declining, demographics getting worse WHAT CAN BE? We need to paint a compelling picture of the future Challenges: Get local govt officials involved Reverse population decline Increase tax revenue base Increase average wage Change age demographic Increase incentives for broadband penetration in the rural areas Low awareness of ICT benefits Create a more diversified economy Overcome apathetic attitudes Limited affordable housing Opportunities: Get county boards & city councils engaged Show local stakeholders that they have a VOICE! Further enhance working relationships with other communities Become a positive place to live, work and play Promote area as an affordable place to live Challenge negative thinking Promote and develop self-reliance in our community Foster entrepreneurship Population49,45456,000 Total Employed21,90325,500 Average Wage27,49440,276 Total Wages$602.2M$1,027B Regional Economic Benchmarks SE COI Goals 2,158 New 4,380 Existing Jobs Raised by $5,000/Year 1,438 jobs at the new average wage $40,276 34% Private Payer Healthcare % $500M EAV Tax Base Broadband Penetration Rate – 50% $44,420,000 Tourism Expenditures $180,000 Regional Room Tax Revenues SE COI Goals 2,158 New 4,380 Existing Jobs Raised by $5,000/Year 1,438 jobs at the new average wage $40,276 34% Private Payer Healthcare % $500M EAV Tax Base Broadband Penetration Rate – 50% $44,420,000 Tourism Expenditures $180,000 Regional Room Tax Revenues See: RA Chapter 6

44 ©2007 ViTAL Economy, Inc. Executive Overview 44 COI Perspective: Greater Wabash Sense of Urgency Population decline educate them but they leave More jobs outside of the area Lost appreciation of the area Rekindling the romance for the area: o The Beauty of the place that we live o Our quality of life o The positive attitude of the area Live, Work, Play and Stay in Southern Illinois and create excellence generation to generation Prosper in spite of Springfield! Stop the population drain what we can do now! Sense of Urgency Population decline educate them but they leave More jobs outside of the area Lost appreciation of the area Rekindling the romance for the area: o The Beauty of the place that we live o Our quality of life o The positive attitude of the area Live, Work, Play and Stay in Southern Illinois and create excellence generation to generation Prosper in spite of Springfield! Stop the population drain what we can do now! Challenges: Spirit of poverty! Youth brain drain Need to change our attitude No collaboration between risk takers Lack of discussion due to territorial battles Lack of appreciation of business by public officials Opportunities: Take control of our own destiny Tap our youth get them engaged in this process Publicize our great assets what makes us unique Tie colleges to skill needs; educate our parents! Leverage our renewable resources in this area; not just raw exports invest in non- renewable as well Fill key gaps (e.g., need Pediatrics, Obstetrics); lots of ripple effects GW COI Goals 1,381 New 5,280 Existing Jobs Raised by $5,000/Year 920 jobs at the new average wage $36,517 $36,406 Per Capital Income GW COI Goals 1,381 New 5,280 Existing Jobs Raised by $5,000/Year 920 jobs at the new average wage $36,517 $36,406 Per Capital Income Population51,42153,000 Total Employed26,40027,746 Average Wage$26,311$36,517 Total Wages$694.6M$1.013B Regional Economic Benchmarks See: RA Chapter 6

45 ©2007 ViTAL Economy, Inc. Executive Overview 45 COI Perspective: Greater Egypt Challenges: Culture of poverty Increase average wage Reverse population decline Youth brain drain 2000 recent dislocated workers Lack of quality and commitment of leadership Weak region wide communication Limited access to public and private capital Opportunities: Highly educated population Technology transfer from educational facilities Quality of place Energy sector: coal, alternative fuels, etc. Value-added agriculture Foreign student population Workforce Development Man-Tra-Con SIU & Community Colleges State and Federal programs Sense of Urgency We have got to break the cycle of hopelessness! Dont tell me what we cant do – tell me what WE CAN do! Sense of Urgency We have got to break the cycle of hopelessness! Dont tell me what we cant do – tell me what WE CAN do! GE COI Goals 10,468 New 26,937 Existing Jobs Raised by $5,000/Year 6,979 jobs at the new average wage $40,765 Educational Degree Attainment High School 85.3% Bachelor 25.2% 17.1% Youth Retention (20-29 age group) 12% Poverty Rate GE COI Goals 10,468 New 26,937 Existing Jobs Raised by $5,000/Year 6,979 jobs at the new average wage $40,765 Educational Degree Attainment High School 85.3% Bachelor 25.2% 17.1% Youth Retention (20-29 age group) 12% Poverty Rate Population253,049274,432 Total Employed134,685157,787 Average Wage$27,830$40,765 Total Wages$3.7B$6.4B Regional Economic Benchmarks See: RA Chapter 6

46 ©2007 ViTAL Economy, Inc. Executive Overview 46 COI Perspective: Network Providers Source: Organization for Economic Cooperation and Development (OECD) Broadband Statistics Dec 2005 (Survey of 14 Countries);Pew Internet and American Life Project Rural Broadband Internet Use Feb 2006 COI Observations: Competitors have become collaborators Through collaboration, Connect SI has identified even more resources and possibilities to improve broadband penetration Resources are greater than originally perceived Connect SI is the focal point: Sharing maps and resources Common goals COI Results ( ): Created a demand driven customer aggregation model generating thousands of open-access sales leads (www.iwantmybroadband.com) Over 35+ small towns have received broadband Over $24M+ in new private sector broadband infrastructure Reached 16% Penetration and 41% Broadband Coverage after only 18 months (starting point was 12% and 25% respectively) COI Results ( ): Created a demand driven customer aggregation model generating thousands of open-access sales leads (www.iwantmybroadband.com) Over 35+ small towns have received broadband Over $24M+ in new private sector broadband infrastructure Reached 16% Penetration and 41% Broadband Coverage after only 18 months (starting point was 12% and 25% respectively) Executive Overview See: RA Chapter 6 25-to-85% Broadband Coverage 12-to-54% Penetration 25-to-85% Broadband Coverage 12-to-54% Penetration 2012 Goals: % Penetration of Population 12% 24% 34% 54% Network Provider COI has set an ambitious goal to increase the SI penetration rate to world class levels!

47 ©2007 ViTAL Economy, Inc. Executive Overview 47 COI Perspective: Healthcare COI Vision: Supporting the collaboration and interconnection among healthcare providers and patients to improve: m Healthcare access m Health outcomes m Provider profitability m The qualified healthcare workforce in Southern Illinois COI Vision: Supporting the collaboration and interconnection among healthcare providers and patients to improve: m Healthcare access m Health outcomes m Provider profitability m The qualified healthcare workforce in Southern Illinois JobsEarningsGDP Direct SI impacts4,676$214.7M$260.3M Indirect and induced2,408$75.4M$156.3M TOTAL7,084$282.3M$424.5M COI Results: Two state healthcare pilot projects initiated and managed locally Collaborate nursing workforce solutions underway Prescription Drug Monitoring System COI Results: Two state healthcare pilot projects initiated and managed locally Collaborate nursing workforce solutions underway Prescription Drug Monitoring System Potential Impact of New Healthcare Positions by 2012 : Impact of Healthcare Goals Desired SI Future State 2012 Desired SI Future State Economic growth will improve payer mix 2. New health jobs will promote economic growth Insured population +10% Medicaid -26% Medicare +18% Uninsured -32% Uninsured -32% Executive Overview See: RA Chapter 6

48 ©2007 ViTAL Economy, Inc. Executive Overview 48 COI Views: Whats In This for Me? My family gets to stay together, my kids don't even think of leaving because of all the opportunity, self-esteem, and pride in our community We go from surviving to thriving The inhibitive walls ALL come crashing down the boundaries created by narrow-thinking, local rivalry, fighting over crumbs and the belief that poverty-is-an-unaddressable-fact-of-life I will be linked into this wonderful collaborative network & infrastructure, yet feel this amazing sense of creative freedom I want my three valedictorian sons to come back home! Executive Overview See: RA Chapter 6; quotes are from RA & EF Hutton interviews

49 ©2007 ViTAL Economy, Inc. Executive Overview 49 Perspective Connect SI Bottom Line: Until everyone involved sees and believes that this effort is the most important initiative that Southern Illinois has ever undertaken, it will be relegated to a hobby that folks do in their spare time - RA Interview Executive Overview

50 ©2007 ViTAL Economy, Inc. Executive Overview 50 Southern Illinois "Garden of the Gods" Connect SI: Crossing the Boundaries Section F: Connect SI: Crossing the Boundaries Executive Overview Summarizes key findings of RA Assesses SI readiness to pursue a long term strategy that will transform the SI economy Provides recommendations for moving forward

51 ©2007 ViTAL Economy, Inc. Executive Overview 51 Progress Towards One Region-One Vision: Last 16 Months 1,000+ Connect SI participants have worked toward building a foundation for hope through investment of tens of thousands of service hours Collaborative funding from local governments, corporations, NGOs, higher education institutions, small and large healthcare systems, state and federal agencies attests to the desire to achieve a regional vision for a robust SI future Network provider collaboration has increased broadband availability by 64% across the Connect SI Region through over $24 million of private investments Healthcare provider collaboration has achieved significant progress towards addressing critical skills shortages and improved health outcomes by prioritizing cooperation over competition Connect SI asset mapping has enabled COIs to uncover opportunities to collaborate across the SI region that would have never before been possible. This has led to numerous short term wins and long-term strategies for growth Executive Overview

52 ©2007 ViTAL Economy, Inc. Executive Overview 52 Barriers to One Region-One Vision: Last 16 Months Breaking old behaviors in terms of continued reliance on state and federal resources as primary sources of capital to fund long-term initiatives rather than prioritize collaborative funding alliances at the local level Critical mass of Connect SI champions has not yet been achieved need to triple its champions to >3,000 active participants, who believe that a climate of economic opportunity is possible for Southern Illinois Imbedded focus of funding, policy and behaviors on industrial attraction, and big employment announcements as the solution to economic growth vs. growing small employer KBE firms (21st century growth engines) that dont garner big headlines Limited recognition of the depth, breadth and length of commitment needed at the leadership, citizen, government, business and media levels to transform a limited growth old economy into an innovation growth economy of unlimited opportunity Insufficient commitment of the time, talent and resources of existing leadership to the expansion of next generation leadership and to growing the skills necessary to collaboratively lead Southern Illinois to become One Region with One Vision Executive Overview

53 ©2007 ViTAL Economy, Inc. Executive Overview 53 Actions Fundamental to SI Economic Prosperity (1 of 2) Address SI Dilemma transition from a climate of limited potential to unlimited opportunity m SI citizens must believe that they have the ability to take control of their destiny m Education of SI uniqueness and opportunity is critical to turning belief into action Increase SIs private sector contribution from 46% to national level of 65%; reduce SIs dependence on public sector income from 54% to national level of 36% by 2012 m Critical to establish an SI climate of innovation versus a climate of risk-aversion m Requires a 30% increase in private sector wage contribution to personal income Improve global export literacy and double global export value in SIs economy m Required to increase flow of external capital into SI…Investment Attraction m Leverages SI indigenous resources…Sow Our Own to Grow Our Own Implement economic strategies to grow SI economy at 3.85% vs 1.34% annually m Increased prosperity is dependent on accelerated growth m SI infrastructure investments cannot be met without increasing economic growth Executive Overview

54 ©2007 ViTAL Economy, Inc. Executive Overview 54 Actions Fundamental to SI Economic Prosperity (2 of 2) Change economic development focus from legacy (manufacturing & commodity agriculture) to KBE global products and services m This is where the high value, high wage job growth opportunities abound m Emphasizes growth of firms not negatively impacted by Illinois weaknesses Grow breadth and depth of Connect SI visionary leaders and champions m Commitment to passionate long-term vision by more leaders is critical m Critical mass of 3,000+ champions is critical to sustainability of change Expand base of collaborative funding support for Connect SI strategies m Long-term consistency in strategy focus is dependent on regional control m Cavalry-is-coming mentality must be dispelled to transform expectations Support a long-term regional framework to guide regional growth m Regional collaboration can only take place through a regional framework m Access to a broader base of financial, data and human resources is assured Executive Overview

55 ©2007 ViTAL Economy, Inc. Executive Overview 55 LOOK FEEL ACT Source: Milestone Visioning Exercise from GW, GE and S5 CSI Participants Vision of the Future Construction is going on Downtowns look nice Sense of pride in our properties; less trash, more flowers More ideal retail available Broadband is everywhere Natural beauty, farmlands are preserved New housing Maintain our historical buildings; respect our heritage Good mix of industry and business Healthcare is widely available Smart use of the brownfields Construction is going on Downtowns look nice Sense of pride in our properties; less trash, more flowers More ideal retail available Broadband is everywhere Natural beauty, farmlands are preserved New housing Maintain our historical buildings; respect our heritage Good mix of industry and business Healthcare is widely available Smart use of the brownfields More educational opportunities People are doing business outside of the area; world markets Intentionally acting in a collaborative manner Street talk has changed to newest activities and additions to the community Business able to compete in the global economy People are proud of their community Walk the Talk Comfort with risk and entrepreneurship and innovation Middle-aged and older folks are not afraid of IT More educational opportunities People are doing business outside of the area; world markets Intentionally acting in a collaborative manner Street talk has changed to newest activities and additions to the community Business able to compete in the global economy People are proud of their community Walk the Talk Comfort with risk and entrepreneurship and innovation Middle-aged and older folks are not afraid of IT Positive perception of the area Pride in the community New people feel welcome, open door feeling We are a 20 county region SI is a world recognized regional brand Value education and a sense of community High school students feel good about staying in the region A new cultural atmosphere More young people bring a vibrancy to the region Strong small town environment Positive perception of the area Pride in the community New people feel welcome, open door feeling We are a 20 county region SI is a world recognized regional brand Value education and a sense of community High school students feel good about staying in the region A new cultural atmosphere More young people bring a vibrancy to the region Strong small town environment Executive Overview

56 ©2007 ViTAL Economy, Inc. Executive Overview 56 VE Vision of SI Tomorrow Southern Illinois is the global location where inter-generation active lifestyle families, visitors & KBE workers choose to live work and play growth abounds SIs historic liability of remoteness and lack of access becomes an asset; instead of forgotten by Chicago, Springfield and Washington, SI is a land and lifestyle treasured, respected, sought after and envied there is only one SI in the World SI communities see themselves in a new light; they are respectful of their place; they see themselves as gateways to a land that is "The Garden of The Gods" Tourism venues, town centers,rural lands, business locations and neighborhoods all demonstrate by their look and feel that SI is a very special place to be preserved and enhanced for all time SI is a place of welcome for people of all cultures whether visiting or living here; in the land of "The Garden of the Gods all are welcome and of value It is a place many want to be, but only the fortunate choose to take advantage of this unique opportunity; SI becomes a place that is worth a premium, rather than one that feels it must offer a discount to be desired Source: ViTAL Economy Alliance Executive Overview

57 ©2007 ViTAL Economy, Inc. Executive Overview 57 Southern Illinois "Garden of the Gods" How Does SI Organize to Succeed? Section G: How Does SI Organize to Succeed? Suggests the framework to progress into Phase 2 Stay cool

58 ©2007 ViTAL Economy, Inc. Executive Overview 58 All new jobs created by Industry Clusters will be targeted to include private payer health benefits for workers and families All new jobs created by Industry Clusters will be targeted to include private payer health benefits for workers and families Phase 2 Framework is Built Around Industry Clusters Tourism Bio-Agriculture Knowledge Based Enterprises (KBE) m Healthcare Technology Products & Services m Advanced Manufacturing m Recreational, Marine, Hunting, Technology Products & Services m Visual Creative & Performing Arts and Services m International Incubation and Innovation m Green Technologies m Homeland Security Response and Services m Life Sciences, Plant and Animal Global Workforce Opportunities Energy Mining Technology Transportation, Logistics & Warehousing Senior Living

59 ©2007 ViTAL Economy, Inc. Executive Overview 59 Phase 2 Priorities for Success (1 of 2) 1. Expand NP-COI connectivity broadband deployment with professional support for an additional twelve months including expansion of enterprise applications for healthcare, education, R&D and tech transfer research collaboration with private sector 2. Broaden base of Connect SI champions and gain re-commitment of Phase 1 champions repeat January-June 2006 road show using RA data to garner additional support 3. Invest robust resources in a collaborative funding strategy to raise $1.5 million in cash and in-kind resource commitments to Connect SI for each FY 2008 and FY Establish Connect SI as a regional data portal for SI Local municipalities are already benefiting from regional data assembled by Connect SI, which has helped local economic development professionals attract businesses to SI there is no other long-term reliable source for consistent, accurate and integrated data for the SI region 5. Select four industry clusters for Phase 2 research and implementation in Recruit private sector leadership teams during first quarter of 2008 for each industry cluster identify experienced rural industry cluster research teams to guide cluster teams 6. Commit to a sense of urgency that is communicated region wide educate citizens and leaders of the economic realities of the need for change today rather than tomorrow invest in Connect SI marketing strategy in support of broadband, champion development, collaborative funding and private sector recruitment goals

60 ©2007 ViTAL Economy, Inc. Executive Overview 60 Phase 2 Priorities for Success (2 of 2) 7. Leadership Advisory Committee agrees to resource the Healthcare COI to aggressively achieve the transformative qualitative and quantitative goals it established in Phase 1 8. Focus four regional COIs on recruitment of industry cluster participants for prioritized SI-wide industry clusters have COI leadership guide implementation of at least two short term win opportunities every six months, which are connected to achieving COI goals 9. Fund and establish a collaborative leadership institute to address critical shortage of visionary leadership across SI include youth engagement in this, so that youth brain drain can be successfully addressed for the long-term 10. Review RA findings and work with ViTAL Economy to integrate RA findings into the SI-wide economic strategy to be released in 1st quarter Commit to obtain and invest resources required to implement Connect SI Phase 2 economic strategy and achieve qualitative and quantitative goals starting April including approval of Connect SI Phase 2 implementation timelines, funding and professional resources 12. Develop a 501(c)3 framework for Connect SI, so that independent government and foundation funding that cannot be received by SIU or Man-Tra-Con can be accessed particularly critical with regard to approved legislation dealing with digital divide funds from state and federal sources

61 ©2007 ViTAL Economy, Inc. Executive Overview 61 Immediate Action Items 1. Utilize this Readiness Assessment as a resource tool and foundation in support of the Connect SI COIs and strategic actions underway Now! 2. Promote this Readiness Assessment report around the region in a variety of forms; web-posting, presentations, hardcopy, CDs, etc. Now! 3. Assemble and expand the Connect SI Leadership Team to completely understand the Readiness Assessment Ongoing! 4. Commit to a sense of urgency to staff, fund, and lead this initiative through Phase 2 and beyond Ongoing! See: RA Chapters 6 & 7

62 ©2007 ViTAL Economy, Inc. Executive Overview 62 Southern Illinois "Garden of the Gods" Call to Excellence…a Destiny of Prosperity! Section H: Call to Excellence…a Destiny of Prosperity! Stay cool

63 ©2007 ViTAL Economy, Inc. Executive Overview 63 What SIs Future Can Become Its Time to Go Global! 11% 8.4% 2.4% 54% 33% 36% 46% 67% 64% SI Becomes an Innovation Economy % Penetration of Population SI is a Global Broadband Leader 12% 24% 34% 54% Insured population +10% Medicaid -26% Medicare +18% Uninsured -32% Uninsured -32% Healthcare Economics are Transformed!

64 ©2007 ViTAL Economy, Inc. Executive Overview 64 Source: State of Working Illinois, by Northern Illinois University (Nov 2005); 21st Century Workforce (May 2004); IMF; ViTAL Economy research Average Annual Growth Rate % 3.85% Stay the Course vs. Change the Course AAGR Connect SI Goals AAGR Worldwide USAState-wideSouthern Illinois 1.34% 2.19% 3.14% 5.62% 2012: increase of $3.6B in GDP to $21.2B SI economy, which translates into $162M in additional State and Local tax revenue 2012: increase of $3.6B in GDP to $21.2B SI economy, which translates into $162M in additional State and Local tax revenue SI Becomes the National Model for Rural Economic Transformation

65 ©2007 ViTAL Economy, Inc. Executive Overview 65 A Return to Love by Marianne Williamson Our deepest fear is not that we are inadequate Our deepest fear is that we are powerful beyond measure It is our light, not our darkness that most frightens us We ask ourselves, who am I to be brilliant, gorgeous, talented, fabulous? Actually, who are you not to be? You are a child of God Your playing small does not serve the world There is nothing enlightened about shrinking so that other people won't feel insecure around you We are all meant to shine, as children do We were born to make manifest the glory of God that is within us It is not just in some of us, it is in everyone And as we let our own light shine, we unconsciously give other people permission to do the same As we are liberated from our own fear, our presence automatically liberates others. The future of Southern Illinois is in your hands!


Download ppt "©2007 ViTAL Economy, Inc. Executive Overview 1 Stay cool Southern Illinois: Garden of the Gods Readiness Assessment Executive Overview December 14, 2007;"

Similar presentations


Ads by Google