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1 ViTAL Economy Alliance
CONNECT SI Southern Illinois: Garden of the Gods Readiness Assessment Chapter 3: Enabling Environment Revised February 15, 2008 ViTAL Economy Alliance Frank Knott, Project Lead; Stan Halle, Senior Editor; Jim Haguewood, Rob Beynon, & Neil Gamroth, Principal Economic Researchers 1

2 Table of Contents EXECUTIVE OVERVIEW: the Big Picture & Importance of Change in Southern Illinois READINESS ASSESSMENT (RA) 1. State, National & Global Trends 2. Indigenous Resources & Industry Asset Mapping 3. Enabling Environment 4. Climate of Innovation, Incubation & Entrepreneurship 5. Southern Illinois Competitiveness 6. Regional Perspectives 7. Framework for Success APPENDICES 3.01 Climate of Collaboration 3.02 Governance 3.03 Broadband Connectivity 3.04 Livable Communities 3.05 Adaptability to Change 3.06 Implications & Recommendations 2

3 Chapter 3: Enabling Environment
Southern Illinois — "Garden of the Gods" In order to take advantage of the trends (Chapter 1) and leverage what makes SI unique (Chapter 2), the key enablers listed below determine whether the SI climate is able to take advantage of these trends and unique assets. This Chapter assesses the readiness of these key enablers to support positive economic growth. Enabling environment performance is the key variable in determining if SI is able to address SI’s Big Dilemma. Chapter 3: Enabling Environment 3.01 Climate of Collaboration ………………….. 5 3.02 Governance…………………..…………….. 15 3.03 Broadband Connectivity ………………….. 34 3.04 Livable Communities ……………………… 49 3.05 Adaptability to Change ……………………. 62 3.06 Implications & Recommendations ……….. 75

4 Key Enablers to Making Our Future a Reality
3.0 Enabling Environment Collaboration is the essential behavior of a 21st century “World is Flat” economy — independent and hierarchical behavior is out — interdependence is valued as a strength not a weakness Governance practices must be transformed to support the reality of a 24/7 globally competitive economy — best practice economies are the most effective and efficient at making it easier for work and workers to compete, live, learn, innovate, grow & collaborate Connectivity is the key enabling infrastructure for effective collaborative regional economies — a mindset as well as an infrastructure that changes how we transact business, govern, communicate, relate & access resources Livable, sustainable or gateway communities are welcoming environments that support innovation, embrace creative culture and attract KBE work and workers desiring quality of life locations Adaptability to change is necessary for persons or entities who live and operate and want to be effective, relevant and successful in fast paced ever changing 21st Century economic environments 4

5 Chapter 3: Enabling Environment
Southern Illinois — "Garden of the Gods" The best performing wealth-creating communities have recognized the strategic implications of moving from a ‘culture of independence’ to one of ‘interdependence and collaboration’. They recognize that technology convergence has caused the compression and collapse of organizational hierarchy. Collaboration of all kinds across public/private sectors is the way that individuals and organizations create enough critical mass to compete in a global marketplace. Chapter 3: Enabling Environment 3.01 Climate of Collaboration

6 3.01 Climate of Collaboration
What is Collaboration? 3.01 Climate of Collaboration Collaboration is the essential leadership and management model of behavior for people functioning in a global, converging, and chaotic world It is a lifestyle change that requires us to throw away our command and control models of behavior, and our desire to control versus share resources Collaboration is the only organizational model that makes sense in a ‘24/7 World-is-Flat Economy’ It is a way of life different than the one we have known Collaboration means sharing of resources and prioritizing interdependence over independence Shared resources include financial, human, information, infrastructure, organizational, or knowledge assets Collaboration is a more efficient and effective use of government, not-for-profit, business or personal resources “The boundaries between companies, towns and organizations will blur as they view themselves as part of an ecosystem, supply chain, or value chain” - Hasso Plattner, SAP

7 3.01 Climate of Collaboration
Why Collaboration is Critical “Neighbors Are No Longer The Competition” 3.01 Climate of Collaboration Rural economies are competing against country strategies Provides rural economic regions with the critical mass necessary to compete with country strategies and mobilize emerging clusters of opportunity Builds connections within and between regions — making remoteness an asset Provides a more cost effective way to allocate resources and make critical decisions Aggregates demand to increase access to utility, transport and knowledge infrastructures expanding opportunity across the region Creates critical mass of knowledge assets to promote and nurture the development of climates of innovation that grow Knowledge Based Enterprises (KBE), which are replacing the historic commodity-resource based industries of growth Builds a regional Vision which enables a rationalization and alignment of sub-regional regulatory and tax policies — creates an attractive and effective economy for workers and work to compete with unified country strategies

8 In a Collaborative Environment: Boundaries Disappear — Non-SI Examples
3.01 Climate of Collaboration Healthcare:161 healthcare sites across four counties and 10 toll-calling areas collaborate to create the first toll-free virtual rural healthcare service between doctors, clinics, pharmacies, therapists, labs and hospitals Government: Tasmania creates in one year a 24/7, one stop on-line citizen access to services from 29 local and State government agencies plus healthcare, education & NGO’s across 26,383 sq. miles serving 484,000 citizens Education: Five K-12 school districts, Peninsula College and private & public workforce development assets collaborate to build the first co-owned business incubator and skills training center Innovation: Nova Scotia virtually connects every remote fishing village with a college without walls to Dalhousie University to increase entrepreneurship that leverages its computer science expertise to develop over 300 village based software companies Tourism: Collaboration of tourism, agriculture, wineries, seafood distributors and restaurants to create a local festival leveraging the regions indigenous resources. On-line sales strategies enabled year round purchases. Dungeness Crab and Seafood Festival now attracts over 30,000 visitors to the region in one weekend Natural Resource: Declining forestry industry in Pacific Northwest collaborates to map assets and link competitive resources to uncover new market opportunities based on indigenous resources and linking value chain components — expanded employment and new plants built for first time in 30 years

9 SI Has a Foundation of Collaboration
3.01 Climate of Collaboration SICCM is an example of a long standing and successful regional collaboration The Southern Illinois Collegiate Common Market (SICCM) is a 501(c)(3) not-for-profit corporation organized in 1973 to provide a means of sharing human and material resources in higher education. Articulation agreements,allied health programs, tourism training, allied grant programs, etc Members include: John A. Logan, Rend Lake, & Shawnee Colleges; SIC, SIU The Wine Trail/B&B cross-sector collaboration — marketing & packaging of assets to capture a larger market Connect SI leaders have achieved levels of collaboration that have brought SI statewide & national recognition as well as collaborative funding success Network Providers meeting as a Community of Interest (COI), sharing data for the first time, setting ambitious goals together — posting of queries for broadband service on a common server, collaboration to expand broadband across SI Healthcare Providers meeting as as a COI, sharing data for the first time, setting ambitious goals together — addressing issues re improving healthcare outcomes, connectivity, access, and profitability; integrated databases COI’s sharing information and resources beyond county, town and regional boundaries Man-Tra-Con has been recognized within and outside the region for its leadership in building collaborative partnerships for Workforce Development

10 SI Examples of Collaboration Success
3.01 Climate of Collaboration Healthy Community Coalitions across seven counties REDCO, Electric Co-ops & South Water, Southern Services, etc. GW, SE and S5 towns collaborating to create critical mass for broadband On-Line Nursing Program Collaboration — Frontier College, Wabash Valley College, HC-Skill Shortage Team Critical Access Hospitals working together — S5 & GW Integrated Healthcare Critical Skills Training Resources – across all SI Energy Cluster Team — SI-wide symposia S5 Clean Coal Gasification Project — S5 cross-town, cross-agency Regional Creation of the Economic & Healthcare Models — all COIs Collaboration in development of GIS mapping resources Preparation of WIRED Proposal — all COIs, Man-Tra-Con, SIU, SIH, etc. Route 13 Corridor Expansion World Shooting Complex Continental University-Rend Lake, SIU & Continental Tire SIU-reinvigorated outreach partnership with SI region These examples demonstrate an SI ability to collaborate, however many SI citizens view SI collaboration as only skin deep

11 Perceptions of SI Citizens
3.01 Climate of Collaboration Key findings from a wide cross-section of interviews conducted in SI: there is a significant lack of collaboration: People working in ‘silos’; don’t talk with each other, don’t know what the others are doing; too many rivalries between and within communities Perception of ‘pie stealing’ rather than ‘making the pie bigger’; banking environment: ‘We swap customers; there’s little growth’ In every sector, public, private, non-profit, being too successful is frowned upon — We have this attitude of not wanting our neighbours to be successful Region is fragmented by jealousy, distrust, and a culture of fierce independence Power resides in a few individuals which limits collaboration We don’t know how to collaborate; in Missouri, four school districts joined together to build one high school — instead, our town leaders insist on each having their own, so nothing modern ever gets built; it is all about power and who controls what These myopic practices pervade SI — the lack of collaboration has been very costly Source: RA and EF Hutton Interviews conducted by VE Team 11

12 The Primary Barrier to Collaboration
3.01 Climate of Collaboration Despite the existence of ‘collaboration points-of-light’ in SI there is a pervasive sense that ‘Silo-Vision’ behavior is a deeply imbedded instinct in SI culture — successful transformation of SI economy will require a comprehensive strategy to breakdown barriers to collaboration Education Health Care Business Government SILO-VISION

13 3.01 Climate of Collaboration
Southern Illinois: Collaboration Assessment (1 of 2) 3.01 Climate of Collaboration Areas of Review Rating Assessment Rationale Education Providers SICCM is a model for higher educational collaboration. Further collaboration is required, including K-12 to meet local and global workforce needs Healthcare Services Competition over a static market has resulted in a lack of collaboration. CSI Healthcare COI has begun to change this climate Government Agencies Limited collaboration between cities, towns, villages and county governments in SI. The number of taxing jurisdictions is a disincentive to collaboration Cross Sector Linkages Best practice communities pursue collaboration between education, healthcare, government, business and citizens. This enables more effective and efficient access to services and sharing of resources in a 24/7 globally competitive economic landscape Economic Development SIDEZ, REDCO, REDI, regional planning districts are positive but limited examples of ED collaboration. CSI has become an expanded model for successful region wide collaboration, much more is needed = Weak to None = Improving = Average = Good = Strong

14 Southern Illinois: Collaboration Assessment (2 of 2)
3.01 Climate of Collaboration Areas of Review Rating Detailed Readiness Rationale Innovation Assets Incubators, SBDC, extension programs, research parks, entrepreneurship programs and tech transfer resources have limited or no connection with one another — budgets are separate and limited in scope Not-for-Profit Partnerships Healthy community initiatives, Access SI and workforce development partnerships are evidence of ability to collaborate, but most do not chose to collaborate Flat vs. Hierarchical Organizations SI government institutions, non-profits and many businesses still function with industrial age, hierarchical versus flat organizational frameworks Collaboration Literacy SBJ’s One Region – One Vision initiative has been a singular effort to build collaborative behaviors and understanding in SI, where such experience is limited Access to Government Services The most effective and efficient globally competitive communities enable citizens, businesses and institutions to share resources and access services seamlessly across boundaries 24/7; for the most part, this is not a current reality in SI

15 Chapter 3: Enabling Environment
Southern Illinois — "Garden of the Gods" As the world becomes flatter and the pace of change increases, it is imperative that state and local governments be more nimble and more responsive to business needs. Their role must be to facilitate success, not erect more road blocks, and to enable a 24/7 world of effectiveness and efficiency. The business climate of a region is measured in terms of how easy versus how difficult is it for new businesses to be successful and for established business to remain competitive. Chapter 3: Enabling Environment 3.02 Governance

16 Governance: Intro 3.02 Governance In an economy where global connectivity resources enable business transactions to take place in seconds across country political boundaries, its unrealistic to continue to act as if local geographic or political boundaries still make a difference. Citizen satisfaction with government services equals the difference between their perception of what they receive and the expectation of what they want to receive. The more negative the gap between perception and expectation, the lower the citizens’ belief in the legitimacy of our governmental institutions. This gap is widening further everyday due to the high level of expectations created in the simple use of credit cards, cell phones, PC’s and PDA’s. These devices allow us to shop globally, access our bank accounts, make investments, obtain information we need at home, work or on the go. Education is still delivered through industrial aged silo organizations. If the skills of tomorrow’s workforce are problem identification, problem solving, and strategic brokering, then the way education and training organizes and acts, not just the curriculum, must reflect the primacy and delivery of these skills. We need collaboration of resources across the education and training spectrum to meet the demands of the 21st Century globally competitive just-in-time economy. “Many forward thinking nations have realized that they cannot make the most of the Information Age with the creaking governmental machinery of the Industrial Age. In this fast moving, fast changing global economy – when the free flow of dollars and data sustains economic and political strength, and whole new industries are born everyday — governments must be lean, nimble, and creative, or they will surely be left behind” Former U.S. VP Al Gore, Government Technology Magazine

17 SI Perceptions of Local Governance
Local governments largely ineffective; caught up in the day-to-day; not able to be proactive; too many petty battles; bureaucratic mind-set Politicians in SI and Illinois have no “merit” basis for prioritizing projects State & Federal grant policies do not encourage us to implement a new economy strategy Replicating public services every six miles! Provincialism down to the township level (“it hamstrings us”); territorial thinking Litigious environment Things work better in Chicago, Champaign-Urbana or Bloomington — tough to compete against that! Competing school systems (again: jealousy) — Saline needs a county-wide system There is a keen awareness throughout SI that something needs to change Source: RA and EF Hutton Interviews conducted by VE Team

18 Overlapping Government Jurisdictions
3.02 Governance Multiple and overlapping jurisdictions causes confusion and burden on the business climate Decision making is bogged down because too many parties are involved Lack of regional collaboration and planning results in multiple, disconnected strategies with limited funding These numerous bodies also add an administrative cost to conducting business in the region with no clear benefit Townships vs. counties — lack of funding for county government; most funding goes to the cities Even when progressive moves are on the ballot, these are persistently voted down in some areas, including: 911-systems School district levies Zoning and building codes A deeply rooted fierce independence too often results in myopic and growth-limiting behaviors Source: RA Interviews and Vital Economy Analysis & Synopsis

19 Units of Local Governments
Illinois: #1 in Units of Government 3.02 Governance State as of June 2002 National Ranking Units of Local Governments Illinois #1 6,903 Indiana #10 3,085 Wisconsin #11 3.048 Michigan #13 2,805 Iowa #15 1.975 Kentucky #22 1,439 Tennessee #31 930 Pennsylvannia #2 5,031 Texas #3 4,784 California #4 4,409 Negative Impact A significant amount of local expenditures are being spread across a small population resulting in a high per-capita cost Competition between local taxing agencies for limited funding Confusion amongst citizens regarding tax payments, decisions and priorities Multiple taxing jurisdictions in sparsely-populated rural areas do not have enough critical mass to adequately finance public services Units of local government include Counties, Municipalities, townships; School, Fire, Utility, Parks and Recreation Districts; not all units of government are taxing jurisdictions Source: U.S. Census of Governments, Individual State Descriptions, 2002, Issued July 2005

20 616 Home-County Taxing Jurisdictions in SI
3.02 Governance SI County # Alexander 74 Perry 18 Edwards 25 Pope 10 Franklin 50 Pulaski 12 Gallatin Randolph 35 Hamilton 24 Saline 39 Hardin 6 Union 21 Jackson 49 Wabash 19 Jefferson 55 Wayne 65 Johnson 16 White 31 Massac Williamson 30 Taxing Jurisdictions: Illinois has about 4,862 taxing jurisdictions in 102 counties; ≈48 per county Indiana has 1,950 taxing jurisdictions across 91 counties; ≈20 per county SI is doing a bit better than Illinois in that it is averaging about 32 taxing jurisdictions per county, though still 50% higher than Indiana However, SI has one taxing jurisdiction for every 690 people vs. 2,529 for Illinois — a very heavy burden on too few people Source:

21 The Heavy Burden of Government in SI
3.02 Governance SI is in transition and its’ governments have not changed or adjusted to it State GDP Government % of GDP Illinois $590.0B $56.8B 9.6% Kentucky $146.0B $21.4B 14.7% Indiana $248.9B $24.4B 9.8% Missouri $225.9B $26.1B 11.6% Tennessee $23.0B $25.1B 10.6% Southern Illinois $17.6B $3.5B 20%* IMPLICATIONS: Way above average % of public-based wage earnings reduces the climate of risk taking and entrepreneur business growth Business retention and attraction is negatively influenced by the # of government entities, resulting in a perception of over-regulation Local governments are directed and resourced by Springfield and Washington, DC which reduce the ability for local direction and control “Areas with population declines may retain a governmental structure designed for larger populations — as the number of residents declines, there may be no automatic trigger to evaluate the need for the same number of governments or whether other delivery systems might be more appropriate” * *Source: BEA, Rural Research Report; Illinois Institute for Rural Affairs, Spring 1995

22 Robust Local Economic Development Resources Are Available
3.02 Governance Numerous federal, state, regional and local organizations actively support and promote SI, including (but not limited to) Coal Belt Champion Community USDA ILDCEO Delta Regional Authority (which includes the states along the Mississippi as far north as IL and MO) Workforce Investment Areas, Economic Development Regions, and Community College Districts, and Regional Planning and Development Commissions SIDEZ (the Southernmost Illinois Delta Empowerment Zone) County and Municipal Commissions and Organizations These (and other) organizations provide primarily grants for projects, data and strategic studies Many grants are for infrastructure improvements The focus of development has largely been manufacturing investment, even though it is projected to decline in the region These agencies recognized that a new organization, Connect SI, was needed to transcend the silo-funding and provide a region-wide comprehensive approach 22

23 Number of Cities in ‘Top Business Centers**’ by State
Illinois Has a Higher Cost of Doing Business 3.02 Governance Illinois burden of business cost is 20%-60% higher than neighboring states Number of Cities in ‘Top Business Centers**’ by State Number of Centers in: Illinois Indiana Kentucky Missouri Top 25 1 7 2 Top 50 13 4 Top 100 14 5 Population Ranking 5th 14th 25th 17th Despite being the 5th largest state, Illinois trails it neighboring states in number of Top 100 Business Centers** **Forbes relied on economic research firm business cost-index-factors in labor, tax, energy and office space costs. For living costs weighs housing, transportation, food, and other household expenditures. It also supplied five-year historical figures on job and income growth as well as migration trends. Other data was supplied by Bertrand Sperling, including metro workforce education, presence of four year colleges, quality of life issues, e.g.: crime rates and cultural and recreational opportunities. Source: Forbes Magazine, 2007; and Indiana Economic Development Corporation 23

24 Illinois Business Tax Climate Ranking: 25th… in the Middle of the Pack
3.02 Governance Components of the State Business Tax Climate Index, #1 Best, #50 Worst Overall Corporate Tax Index Individual Income Tax Index Sales Tax Index Unemployment Tax Index Property Tax Index Illinois 25th 30th 13th 32nd 36th 40th Source: Tax Foundation, October 2006; Index has 113 variables

25 Illinois Structural Deficit
3.02 Governance Public services in Illinois, from education to public safety, are in trouble: The problem is not spending — Illinois is a low spending state ranking 42nd nationally The trouble is Illinois’ revenue system was developed decades ago and cannot deal with the costs of funding public services in the 21st century  Illinois has a tax system so antiquated it does not grow with the economy One of the most unfair systems in the nation, placing a larger tax burden on low and middle-income residents This means state funding for public services like education and public safety is unable to grow with inflation and is often cut from year-to-year Source: Center for Tax and Budget Accountability, 2007

26 Illinois Deficit Picture 2008
3.02 Governance Illinois’ structural deficit makes it imperative that SI develop a culture of collaborative funding to lessen dependence on State resources

27 Legal and Courts System Climate
3.02 Governance State U.S. Rank Iowa 4th Indiana 8th Wisconsin 10th Kentucky 33rd Missouri 34th Illinois 46th Illinois ranks 46 of 50; lawyers regard business cases as relatively unreasonable in IL Indiana, Wisconsin, Iowa all scored in the top 10 Illinois court system is not regarded as friendly to business Medical malpractice issues have reduced access to medical specialists throughout SI and have discouraged others from providing medical services in SI Workers Compensation rates can be prohibitive At least 6% of the workforce are repeat abusers versus 2-3% in other parts of the country SI has doctors who encourage/assist workers in filing false claims taking advantage of the system Even when we get our rate of incidents down by 50% our claims payouts go up 35% We have never experienced anything like this anywhere in the U.S.; everyone seems to have a lawyer - RA Business Leader Interview Source: Institute for Legal Reform, RA Interviews 27

28 Leadership and Governance
Connect SI participants and over 940 RA interviewees have identified a major barrier to transformation — the lack of broad and deep pools of leadership talent throughout SI communities and organizations There is a broad based need for leaders with the skills to collaboratively organize, motivate and lead SI to connect the regions assets and achieve sufficient critical mass to compete in the global economy Systems of governance within/between public, private, not-for-profit, institutional and community development entities cannot be transformed to lead 21st century regional economies without understanding & assessing existing leadership styles, and determining which skill gaps need to be filled to meet new leadership requirements Following are descriptions of eleven leadership styles needed for a successful transformation of SI and an assessment of the current base of leaders

29 Strong Leaders Ensure Success
3.02 Governance Vision Leaders grasp and communicate the value of a shared economic vision to a broad base of community and cluster forces Innovation Leaders advocate a climate of continuous innovation for each cluster and the overall initiative, as well as the development of entrepreneurial opportunities Influence Leaders command the respect of diverse interest groups and whose very presence brings others to the table to insure cluster and initiative success Resource Providers value the vision and provide access to resources that enable the vision to succeed at the initiative and/or cluster level Research Leaders understand the value of knowledge gathering and knowledge development for the purpose of crafting the basis for out of the box solutions Cornerstone Leaders are regulatory, government, business, political and community coalition champions critical to broad adoption of the cluster and initiative strategies Collaborative Leaders understand the economic leverage value of shared resources and shared ideas, and communicate the positive value of such behavior to others Education Leaders control access to education and training resources and understand the importance of a life long learning resource in support of the initiative Economic Leaders understand the importance of changed spending behavior in unleashing traditional spending to transforming an economy Connectivity Leaders control access to public and private connectivity resources and champion their linkage to enable the collaborative development of the local economy Project Management Leaders are focused on establishing goals and objectives and assuring that cluster-based project initiatives are managed to a successful conclusion and evaluated in terms of intended outcomes

30 Collaborative Leaders Project Management Leaders
Southern Illinois: Leadership Assessment 3.02 Governance Styles of Review Rating Assessment Rationale Vision Leaders Limited ability to craft and articulate a vision of the future; exception One Region - One Vision Innovation Leaders Innovation leaders and entrepreneurs are neither prevalent nor commonly supported — it is safer in SI to remain under the radar Influence Leaders A small group of regional influence leaders have committed to lead, but many are still on the sidelines — even more are needed Resource Providers CSI has achieved a record level of collaborative resource support from dozens of organizations — critical mass has not been achieved Research Leaders Knowledge sharing is very limited across SI. Structural systems are not in place to enable knowledge sharing — tech transfer is weak Cornerstone Leaders The foundation of cornerstone leadership has been laid within CSI Collaborative Leaders There is a limited base of collaborative leaders in place — notable examples of collaboration, but not broad based Education Leaders University and college leaders have committed to lead, but limited participation from K-12 and non-traditional sectors Economic Leaders The economic leaders are committed to participation, but lack the training and knowledge and resources to collaborate Connectivity Leaders Regional network providers have shown a commitment to lead the development and implementation of a broadband strategy Project Management Leaders Limited number of experienced individuals and organizations to collaboratively manage/oversee projects to successful conclusion

31 Non-SI Collaborative Governance Examples
On-Line Community Services: Columbia County, Georgia was recognized in 2007 as one of five best practice counties by the Center for Digital Government — has enabled all citizens and businesses to conduct business on-line 24/7 in over 20 service areas ( Multi-government to Citizen Services: Tasmania creates in one year a 24/7, one stop on-line citizen access to services from 29 local and State government agencies plus healthcare, education & NGO’s across 26,383 sq. miles serving 484,000 citizens ( Performance Benchmarking: BC Progress Board tracks changes in the economic performance and social well-being of British Columbia —benchmarks BC’s performance against other jurisdictions to determine if BC’s competitiveness and quality of life are improving ( K-Infinity Education: North Carolina Information Highway enables universities, colleges, high schools, and workforce development related sites to actively exchange courses across all levels of the educational system without regard to district, institutional or education level boundaries Data Portals: State of Oregon provides an on-line integrated data portal for every incorporated municipality inclusive of infrastructure status, demographic, social and economic data, climate, community development assets, tax rates, and more — provides comprehensive community profiles SVETN: Southwest Virginia links 13 rural mountainous counties to create first virtual Governor’s High School, create on line multi-county and municipal government services network, and just-in-time customized job training for industry directly to plant floor anywhere, anytime Rural Health Service: 161+ hospital, clinic, lab, therapist, pharmacist, physician, public health district sites collaborate across four counties and multiple municipalities in Western New York to create the first rural health service network — this initiative transformed the economics of healthcare as well as patient outcomes throughout this region Tourism BC: Rated as one of the world leading destination marketing sites — includes sites for each tourism region; each regional site is programmed for multiple international visitor interests, includes an integrated booking engine used by their website, call center and highway and airport tourism information centers (

32 Southern Illinois: Governance Assessment
Areas of Review Rating Assessment Rationale Government Centers of Excellence Other U.S. regions are following business practice of outsourcing tax billing; assessments to improve service 24/7 Citizen Access to Government Services Citizens no longer have time to stand inline or go from agency to agency — functioning in a 24/7 world Integrated Multi-level Government Permit Process Residents and businesses need a more effective process for permit application, review and approval Regional Data Sharing The only regional data is through SIU or CEDS. State data is not very comprehensive or accurate for SI region Regional Budget & Tax Sharing System Few compacts exist for sharing resources across taxing jurisdictions — resulting in thin & duplicated resources Regional Economic & Community Development Strategies Connect SI has created the basis for a regional economic and community development strategy Regional K-Infinity Education Strategy & Resource Sharing There are distance learning resources in the region, but they are significantly under utilized — turf issues remain Regional Healthcare Strategy and Resource Sharing Connect SI regional Healthcare COI has created regional goals — there are existing healthy community initiatives that cross county borders

33 Governance: Summary 3.02 Governance Disparity between policies that support traditional versus emerging new KBE, innovation economy business, which are the growth engines of 21st Century economies Most current policies support existing, larger businesses tend not to support emerging innovation businesses Illinois structural deficit makes it imperative that SI develop a culture of collaborative funding to lessen dependence on Illinois resources while expanding SI resources Long term solutions to the structural deficit are not in the control of SI Lack of state agency consistency regarding how economic regions are defined This leads to inconsistent and unreliable data analysis Discourages and complicates a regional sense of identity Makes integrated solution analysis and comprehensive problem solving difficult at best The leadership gaps are barriers to success unless they are addressed Youth engagement needs to be part of the leadership development effort Implementation of collaborative initiatives require a variety of leadership skills Lack of consistent data analysis across agencies Very little data was available to SI or its constituent 20 counties Makes it very difficult to manage or implement a proactive economic strategy There is a real need for a reliable regional data portal accessible to all levels of government There is no governmental strategy in place to support a 24/7 service reality

34 Chapter 3: Enabling Environment
Southern Illinois — "Garden of the Gods" Taking full advantage of the Globalization and eCommerce trends requires access, adoption and connectivity literacy in the use of broadband throughout SI. The Internet levels the playing field. Without this basic infrastructure and improved literacy, SI will remain sitting on the sidelines of economic growth and prosperity. Chapter 3: Enabling Environment 3.03 Broadband Connectivity

35 Broadband Connectivity: Overview
The Globalization & eCommerce trends cited in Chapter 1 led to development of Milestone 5 industry sector growth opportunities COI goals added additional requirements for linking assets across SI for : Tourism Bio-Agriculture Transportation, Logistics & Distribution Global Workforce Opportunities KBE (Advanced Mfg, Creative Arts, Health Products & Services, etc.) Life Sciences — Plant and Animal Energy Mining Technology Senior Living Healthcare Services K-Infinity Education Services In virtually every sector, broadband infrastructure access and adoption are critical to enabling each of these sectors to be globally competitive Connect SI and the Network Providers COI have made significant progress capturing demand, and fostering the installation of new broadband systems in several communities

36 3.03 Broadband Connectivity
SI Comments re: Connectivity 3.03 Broadband Connectivity Connectivity with students for on-line instruction is poor — it limits students ability to take advantage of educational resources in the region Our business partners don’t even have sufficient digital communication lines to receive distance education to pick up courses for improvement of their workforce Students are always complaining about off campus access Most farmers in our county cannot get access to broadband services because we are too remote, but we are still competing in a global economy We’ve made more progress in 3 hours than we have in ten years of meetings trying to get broadband to our communities This is one of the best efforts of its kind in the U.S. — Connect SI has formed a collaborative partnership between the network providers and the marketplace We need Connect SI to help physicians combine our communication needs so that the network providers can see as as a market opportunity

37 SI Examples of Understanding the Value of a Connected Region
3.03 Broadband Connectivity SIU community data portal collaboration between Center for Rural Health and Social Services Development, Paul Simon Public Policy Institute & SIU School of Medicine < Carbondale Now-Illinois Area Data Portal < Transitions SI — website for dislocated workers hosted by Man-Tra-Con < Access SI — Community Resource Directory for SI — 1,000+ agencies < Shawnee Hills Wine Trail — links nine award winning wineries in Jackson & Union counties < There are connectivity “points-of-light” in SI, but insufficient critical mass of users who understand the value of connectivity in changing the way SI lives, works, governs and competes

38 Connectivity Readiness: a Matter of Literacy, Not Just Infrastructure
3.03 Broadband Connectivity SI Sectors Needing Connection Ratings 24/7 Connectivity Application Availability Tourism Multiple internet portals across SI. No one-stop portal for tourists to learn, plan and book an SI travel experience Healthcare Larger healthcare systems are internally connected — smaller systems are not; limited access for medical professionals across systems; healthcare customer online access is very limited eCommerce Active e-commerce businesses in SI are in the minority — there are a number of emerging businesses that are exclusively on-line eGovernment There are a number of local governments without web sites and/or access via — online government services is very limited K-Infinity The Illinois virtual high school exists as do a number of distance learning resources, but they are significantly under utilized Workforce Development Proactive linkage of training resources, employers, job seekers, industry sector requirements and credentialing are limited Innovation Assets There are very limited connections between innovation assets across SI — limits technology transfer and expansion of innovation opportunity Global Market Access There is limited access to and leverage of global market information or markets Economic Development On-Line Portal There is no economic development portal for SI — those economic development websites that do exist are limited in scope and geography The critical question is: What is the understanding of SI business, government, NGOs & institutions in the use of connectivity applications to become 24/7 globally competitive resources for SI citizens?

39 Assessment of SI Addressing Internet Trends in Tourism
3.03 Broadband Connectivity Tourism Industry is an example of SI need for increased understanding and application of connectivity resources Internet-Based Traveler Market Trends SI Score Online travel information across multiple venues & experiences Online travel planning tools that aid visitor to map an entire itinerary Ability to book all aspects of a single trip on-line through a provider website site Provides a one-stop inter or intra region travel shopping experience Offers lifestyle travel packages with a value packaging approach Communicates a quality of brand that can be grasped by visitor = Correlation is high = Correlation is low

40 CSI Network Providers COI Accomplishments
3.03 Broadband Connectivity Where We Started mid-2006 Where We Are Today Limited knowledge of network & service availability Entire SI region has networks and assets GIS mapped including healthcare, population centers, over 40,000 higher education student and faculty addresses,business, healthcare and citizen broadband service requests Limited broadband deployment objective & goals Ambitious Goals Set: Increase 1.5 Mb penetration from 12% to 54% by 2012 Increase broadband coverage from 25% to 85% by 2012 Disaggregated method for people to request service Aggregated paper and online method of gathering needed information for service request and sharing with all carriers No method of gaining community regional input on where network was needed Regional cross-COI meetings held to develop specific priorities for network builds and application requirements Low connectivity application literacy PR marketing and education program under development Small communities of under 600 people were told and believed that they would not get broadband service in the foreseeable future Small towns ( People) delivered broadband service; many other communities received expanded services. DSL enabled central offices have increased over 100% Wireless broadband underway in almost 20 towns Cable based broadband expanding in multiple counties

41 Coverage & Penetration Success of CSI
3.03 Broadband Connectivity In less than 18 months, Connect SI and the Network Provider COI have Increased household penetration by 33% (from 12% to 16%) Increased household coverage by 64% (from 25% to 41%) During the same period 40 additional central offices have turned-on DSL capability Over $24M of Network Provider investment was made without any public funding

42 Connect SI Network Provider Collaboration
3.03 Broadband Connectivity Illinois Century Network

43 Substantial Broadband Backbone Already In Place Across SI
3.03 Broadband Connectivity GIS mapping has enabled CSI to identify infrastructure assets to leverage to expand connectivity applications to fuel SI economic expansion

44 3.03 Broadband Connectivity
GIS Mapping of SI Broadband Resources

45 Backbone Assets Available, But Underutilized
3.03 Broadband Connectivity The Illinois Century Network (ICN) has been an outstanding resource for deploying broadband to nonprofit and public entities ICN is a telecommunications backbone providing high speed access to data, video, and audio connections in: Schools and libraries Colleges and universities Public libraries and museums Local government and state agencies More than 5,500 sites are connected regardless of location using standard local exchange carrier service (aka local phone companies), cable modem, wireless and dark fiber optic cable and five different connectivity providers ICN point-of-presences are connected at a bandwidth OC-3 (135 Mb) with plans to upgrade to OC-12 and beyond Source: Illinois Institute for Rural Affairs, Sharon Shumacher, Spring 2003 45

46 3.03 Broadband Connectivity
ICN Enables Network Providers To Extend High-Speed Broadband Backbone into SI 3.03 Broadband Connectivity Public Schools 3,671 Other Ed. Facilities 680 Private K-12 287 Community Colleges 117 Colleges/Universities 195 Libraries 470 Museums 28 Healthcare Facilities 55 Government 33 Other 138 TOTAL ICN Sites in IL 5,975 96% of over 625 ICN Clients in SI are connected at a T-1 speed or greater

47 3.03 Broadband Connectivity
Broadband Connectivity: VE Assessment 3.03 Broadband Connectivity WEAK IMPROVING GOOD AVERAGE STRONG SI Readiness to Respond to Global Best Practice Requirements to Enable an Economic Region to Compete in a A 24/7 World Economy Household Broadband Network Coverage - Access Household Penetration - Take Rate Enterprise Broad Band Network Coverage - Access Enterprise Penetration – Take Rate Network Provider Responsiveness & Collaboration Digital Literacy: (Internet, Computer, Applications, Use) Household Enterprise – Includes Businesses Institutions Local Government

48 Broadband Connectivity: Implications
Household Broadband Network Coverage & Penetration Rate Coverage and penetration rates need to continue to expand to meet world class goals Goal achievement will be critical to enabling a 24/7 globally competitive workforce Enterprise Broadband Network Coverage & Penetration Broadband access and use is largely in the Route 13 and I-57 corridors Healthcare coverage is in the process of being expanded on a number of fronts Network Provider Responsiveness & Collaboration Over 30 network providers are collaborating across SI — a record achievement in Illinois Providers are sharing leads and have committed to meet market demand requirements Household Digital Literacy This must dramatically improve especially among adult leaders or SI growth strategy will fail Enterprise Digital Literacy Level of literacy is limited — there is a need for expansion of understanding of the role of connectivity in linking remote assets, achieving improved productivity & accessing larger markets Local Government Digital Literacy Most local governments have not adapted their services to a 24/7 flat world reality Too many elected officials pride themselves on not being digitally connected KBE work and workers as well as young adults will be put off by digitally illiterate governments

49 Chapter 3: Enabling Environment
Southern Illinois — "Garden of the Gods" One of the most important enablers in a prosperous & growing community is livability — from infrastructure, to community & natural amenities, to visual appeal & attractiveness, to accessing good schools, recreation, healthcare, arts & culture. Chapter 3: Enabling Environment 3.04 Livable Communities

50 Livable Communities Intro
Livable communities all across America are increasingly popular places in which to live, work, vacation and retire In the 1990s, 2 million more Americans moved from metropolitan centers to rural areas than migrated the other way — communities with natural beauty and a high quality of life are magnets for businesses, working families and retirees The vast majority of residents, new and old, feel a strong attachment to the landscape and the character of their town — want a healthy economy, but not at the expense of their natural surroundings or community character Elected officials and residents want to find ways to preserve what they love about their communities without saying no to jobs and economic development Across America, there are communities that have found that economic prosperity does not demand degraded surroundings, loss of community character or becoming a congested tourist trap Successful communities are finding that the opposite is true — beauty pays, sustainable tourism provides more benefits than mass-market tourism, retaining community character is a key to economic success, and thoughtful management of public resources and well-planned development can help prosperity occur Source: National Geographic Center for Sustainable Destinations, Urban Land Institute and The Conservation Fund Survey

51 AIA Ten Principles for Livable Communities (1 of 2)
Design on a Human Scale Compact, pedestrian-friendly communities allow residents to walk to shops, services, cultural resources and jobs while reducing traffic congestion and improving peoples health Provide Choices People want variety in housing, shopping, recreation, transportation & employment variety creates lively neighborhoods and accommodates residents in different stages of their lives Encourage Mixed Use Development Integrating different land uses and varied building types creates vibrant pedestrian friendly and diverse communities Preserve Town Centers Restoring, revitalizing and infilling town centers takes advantage of existing streets, services and buildings and avoids the need for new infrastructure — helps curb sprawl and promote stability for neighborhoods and towns Varied Transportation Options Giving people the option of walking, biking and using public transit, in addition to driving, reduces traffic congestion, protects the environment and encourages physical activity Source: AIA The American Institute of Architects: Communities by Design

52 AIA Ten Principles for Livable Communities (2 of 2)
Build Vibrant Public Places Citizens need welcoming, well-defined public spaces to stimulate face-to-face interaction, collectively celebrate and mourn, encourage civic participation, admire public art. and gather for pubic events Create a neighborhood Identity A “sense of place” gives neighborhoods and towns a unique character — it enhances the walking environment and creates pride in community Protect Environmental Resources A well-designed balance of nature and development preserves natural systems, protects waterways from pollution, reduces air pollution and protects property values Conserve Landscapes Open space, farms, and wildlife habitat are essential for environmental, recreational and cultural reasons Design matters Design excellence is the foundation of successful and healthy communities Source: AIA The American Institute of Architects: Communities by Design

53 How Rural Places Achieve Economic Prosperity as Livable Communities
They focus on retaining their scenic beauty, small town values, historic character and sense of community They actively involve a broad cross-section of residents in determining and planning their future They capitalize on their distinctive assets -- their architecture, history and natural surroundings rather than trying to adopt a new identity The most successful places regularly take these actions: Develop a widely shared vision Create an inventory of local resources Build on local assets Meet the needs of both landowner and community Team up with public managers Recognize the role of non-governmental organizations Provide opportunities for leaders to step forward Pay attention to aesthetics Source: Balancing Nature and Commerce in Gateway Communities-Island Press-Jim Howe, Ed McMahon and Luther Propst

54 Livable Community Benefits
3.04 Livable Communities Economic Benefits Invites local spending Attracts tourists Attracts investment Attracts workers Attracts businesses Property values increase Reduced travel costs Environmental Benefits Balanced transportation Less miles driven Reduced air pollution Compact land development Less habitat fragmentation Less impact to fragile areas Less runoff-reduced water pollution Health Benefits Cleaner air More people walk and bike Activity reduces health risks Obesity reduced Attracts businesses More sustainable environment Social Capital Benefits More places to socialize Increased personal interactions Social network expands Creative networks expand Innovation exchange increases Becomes a people destination Source: Our Built & Natural Environments, EPA Jan 2001, Centers for Disease Control, www,

55 What SI Folks Are Saying (1 of 2)
3.04 Livable Communities Once we get people here, we can’t get them to leave; they love the way of life Peaceful, quiet and lots of stars in the sky No traffic congestion — it only takes a minute or so to go a mile here in SI; compare that to Chicago! SI quality of life is a major benefit — 80-85% of our workers are outdoorsmen and enjoy fishing and hunting I moved here from Southern California, there’s a lot of potential here, but locals do not realize what they have Lakes are a draw, state parks are fabulous; we have operation managers from California that think SI is one of the finest outdoor recreation areas in the U.S. Serenity, fields, hills, trees, lots of space We have lots of unique small towns; we should be focusing on what the high points are of each town and communicating this across and beyond SI to build pride and opportunity Source: RA and EF Hutton Interviews conducted by VE Team

56 What SI Folks Are Saying (2 of 2)
3.04 Livable Communities We need to deal with the down-and-out look of SI; healthcare professionals who like the practice opportunity in SI have been astounded at how little respect SI-citizens have for the way it looks We would have a more attractive community if our politicians would stop focusing on the next election and start looking towards the next generation Just look at how we take care of our own community; others would be embarrassed with the way some of our region looks — always disturbed me that we live in paradise, yet why do so many of us hate being here? We should be proud of where we live; where we live is a tremendous asset; we should have more pride in the appearance of our communities; there is a culture of low expectation that is pervasive; we need to set higher standards We loose trained professionals due to limited activities for creative lifestyle folks; leaders don’t understand what KBE-workers are or want for their families SI is a gateway to the Garden of the Gods — why do we offer visitors a view of poverty and devastation Source: RA and EF Hutton Interviews conducted by VE Team

57 State & SI Uniform Building Code Issues (1 of 2)
3.04 Livable Communities Illinois has no uniform, comprehensive building code that is enforced statewide Illinois has over 250 separate laws and administrative rules that control certain aspects of design and construction It lacks a single code that contains or references all of the guidelines and standards Most other parts of the country use a single code to help ensure the construction of safe and healthy buildings   Today, there are two organizations in the U.S. that publish model building codes in each of the 13 categories recognized by the construction industry These organizations actually compile, incorporate and reference standards and other construction-related documents issued by a great number of industry organizations, independent testing laboratories and federal agencies The first, formed in 1994, is the International Code Council, or ICC This second organization is the National Fire Protection Association, or NFPA Illinois is one of four states left that has not adopted a statewide building code It has adopted some statewide codes that affect specific areas of design and construction But, unlike most states, has no uniform, comprehensive family of codes Generally, zoning ordinances are a companion to the adoption of construction codes This lack of building codes and zoning is NOT a strength for economic attraction; it is an economic liability for both housing & business development Source: International Code Council; interview with Illinois Building Commission 57

58 State & SI Uniform Building Code Issues (2 of 2)
3.04 Livable Communities What options are there for Illinois and the SI counties? First Option: Illinois would take complete charge of the building code system Centralizing and unifying the processes, interpretations, and rulings concerning a uniform, comprehensive, statewide code Creating a “one-stop shop” for the municipalities, general public, product manufacturers and design & construction industries The “fierce independence” culture of SI would make this option very difficult to implement and even harder to enforce Second Option: “Shared control” of the building code between Illinois and local governments All large municipalities already have adopted a building code, and many have the administrative structure in place to handle permitting, plan review, inspections, enforcement, variances and appeals Most of these local governments currently leave the technical updates of codes to the model code writing organizations Makes more sense for SI to piggy-back on this time-tested code — but will still require local support to implement Third Option: Legislation that grants exclusive control of a uniform, comprehensive code to local governments Unfortunately this leaves the impetus in the hands of local folks — therefore requiring a significant effort to create value & support for setting up code Source: International Code Council; interview with Illinois Building Commission 58

59 Livable Community: Assessment (1 of 2)
3.04 Livable Communities Access Criteria Rating Assessment Rationale Transportation Options The region has complete package of above average transportation access and infrastructure, including interstate highways, railways, airports and waterways — outside of GE, however, public transportation is limited Healthy Town Centers Overall SI downtowns are deteriorating — models for success exist in SI: SIU School of Architecture provides opportunities for SI to increase these models of success Vibrant Public Places Opportunities for vibrant public gathering places exist throughout SI — strategies need to be developed to leverage these locations Sense of Place SI citizens have a narrow belief of the special place and environment in which they live — a regional branding strategy could help define this sense of place Balance of Nature and Development With only 3% of its total land area built up, SI could become a premium livable community (e.g., double its development), and still easily retain its rural setting beauty Open Space The region possesses a vast amount of open space, which meet the criteria for an attractive livable community 59

60 Livable Community: Assessment (2 of 2)
3.04 Livable Communities Access Criteria Rating Assessment Rationale Livable Community Literacy The region has a weak understanding of Livable Community characteristics — CSI can lead initiatives to educate and implement key guidelines Community Codes, Zoning and Planning Systems The region is substantially behind in community planning — SI will need to enact regional planning to prepare for KBE growth Life Long Learning Access SI is blessed with robust educational resources — the region has an opportunity to leverage these resources to attract and build KBE and senior living markets Housing Options SI has an aged housing stock — new housing developments are underway; diversity of housing options needs improvement; best practice planning & design standards need to be the basis of strategy Creative Class Social Networks The Creative Class is primarily underground in SI, but is growing — a proactive strategy for leveraging and connecting existing higher-ed creative assets is critical Livable Choices The region has a narrow offering of livability infrastructure assets but has robust natural and environment assets — 60 — 60

61 Livable Communities: Summary
Planning and zoning is almost non-existent across the region. There seems to be a certain pride in having no regulation High value growth businesses want the certainty of planning, zoning & code enforcement Lack of such tools leads to external view of SI as low value instead of high value A broad cross section of citizens are not in place to support the development of livable communities Examples of livable communities exist in the region, but there are not livable communities strategies in place Distinctive assets of architecture, history, natural surrounds and arts and culture are in abundance — they remain unconnected and not leveraged Livable community literacy is weak and almost non-existent including the understanding of the benefit and attraction of high-wage jobs SI is largely a car friendly economy — public transportation is limited and workability at the town level is not recognized With only 3% of its total land area built up, SI could become a premium Livable Community (e.g., double it’s development), and still easily retain its rural setting beauty

62 Chapter 3: Enabling Environment
Southern Illinois — "Garden of the Gods" One of the most fundamental keys to SI’s growth and prosperity is being adaptable to change — being willing to change, as well as being flexible and proactive. The pace of change is accelerating due to globalization and the ten flatteners (Chapter 1). There is an old expression: “even if you’re on the right track, you’ll get run over if you just sit there”. Chapter 3: Enabling Environment 3.05 Adaptability to Change

63 Adaptability to Change is Essential
“It's not the strongest nor most intelligent of the species that survive; it is the one most adaptable to change” - Charles Darwin “The definition of insanity is doing the same thing over and over each time expecting different results” - Ben Franklin, Albert Einstein & W. Edwards Deming “When the rate of change outside the organization is greater than the rate of change inside the organization, the organization is in trouble” - Jack Welch, CEO GE The Past is our foundation, but it need not determine our Future! - VE Team 63

64 Adaptability to Change: Perspective
Adaptability to change in Southern Illinois is the number one prerequisite for success — transforming your economy & your community CANNOT happen without proactively embracing change as a new way of life It is also important to realize that: Organizations don’t change — it’s individual leaders and employees who change Communities don’t change — it’s individual leaders and residents who change There is no short cut — one-by-one, each person decides whether the change is good for them; this takes time, focused effort and proof that the change is worthwhile Not everyone needs to embrace or accept the change for it to occur When 1-to-2% of individuals in a particular group become believers and doers, the change becomes a real possibility — SI is currently at about 0.4% Critical mass is reached when 16-18% become believers & doers — it’s at this point when the change will succeed and endure Each individual must want the change more than the status-quo — which takes a combination of a compelling sense of urgency and a compelling sense of opportunity to provide sufficient motivating force to overcome resistance to change To reach this shift takes a clear vision of what the change will look and feel like, why it’s important (motivating forces at both the micro and macro levels), and how to make it happen (i.e., tools, capability, resources) The ViTAL Economy approach provides the tools and process for this to occur on an ever increasing scale —the following slides highlight where SI is today and what needs to change Source: Leading Change, Overcoming Chaos, Michael Heifetz 1993; The Tipping Point, Malcolm Gladwell. 2000

65 What SI Citizens Have to Say About Change
3.05 Adaptability to Change I see our quality of life disappearing because we aren’t willing to change — it is hard to consider a global picture, when we can’t get along town to town To get anything done in economic development, you have to be willing to fight the internal battles at the State level, step on toes, and run the risk later of being penalized — no one is willing to put their job at risk to accomplish the greater good It is all about power and who controls what — we have to change this or find a whole new way to work together The State just gets in the way; they are clueless, disorganized, slow to respond or obstructionist — nothing seems to change We would love to be involved with Connect SI to help define the future we want to have, however, don’t ask us to get involved in extended processes. Give us a task; pull the right people together to get it done. People need to be recognized; give us an opportunity to shine by doing something that really has impact — make SI a prestigious place to be 75% of the local residents would like something to change in the community, but they would like someone else to do it Source: RA and EF Hutton Interviews conducted by VE Team

66 Where is SI Today and Where It Needs to Go
3.05 Adaptability to Change The following two slides capture what we call “SI’s Big Dilemma”: Current State = A Climate of Limited Opportunity Desired Future State = A Climate of Unlimited Opportunity The remaining slides in §3.05 provide: An assessment of SI’s progress vs. the Eight Steps to Managing Change What changing SI’s thinking means What needs to change to get to your desired future state Applying the principles of “The Starfish and the Spider” Summary: fertile ground for change

67 SI’s Big Dilemma: Climate of Limited Opportunity
3.05 Adaptability to Change Resulted in only 1.35% AAGR for last 25 Years Issues Weighing Down SI Indigenous Resources & Innate Talents Fragmented and poorly leveraged Primary focus on local opportunities Insufficient # of visionary leaders Too many political boundaries Mindset: willingness to accept mediocrity and lack of a sense of excellence Insufficient climate of collaboration and trust making change very difficult Continuing belief that “the cavalry is coming” despite proof to the contrary Losing the best and brightest 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/funding priorities reinforce old economy strategies, and inhibit new ones SI’s Current State SI’s future hangs in the Balance!

68 SI’s Potential: Climate of Unlimited Opportunity
3.05 Adaptability to Change Results in over 3.85% or better AAGR for NEXT 25 Years Issues Weighing Down SI Indigenous Resources & Innate Talents 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 SI’s Future State Linked across SI and highly leveraged Active visionary leaders Collaboration abounds Boundaries are being crossed New behaviors Global focus Growth & prosperity realized!

69 Eight Steps for Managing Change and Transforming Your Organization
3.05 Adaptability to Change Establish a Sense of Urgency — builds the motivating force necessary to make the change worthwhile for each individual and the community as a whole Form Powerful Guiding Coalitions — provides the necessary leadership to bring disparate groups together and foster collaboration across boundaries Create a Vision — aligns leaders and participants to common goals and a compelling view of the future Communicate the Vision — builds understanding & participation; the bigger the network, the more collaboration can occur, the more powerful the change Empower Others to Act on the Vision — proves to the community-at-large that the decision-making hierarchy and concentrated power base of the past is changing Plan for, Create & Communicate Short Term Wins —demonstrates that real change is occurring and helps those from Missouri (“show me”) to get on board Consolidate Improvements & Produce More Change —builds momentum, making it easier for those on the sidelines to “take the risk” in joining the effort Institutionalize New Approaches — provides the foundation for repeatability as more and more leaders and potential participants emerge • Economy has changed - Nuala Beck We are not alone-but we need to lead • Access not place defines value • From time value of $ to $ value of time • How to we challenge and energize a congregation of life long learners? • Are we sharing & doing more with less? • Administrative costs of $80-$300 vs. $25.

70 3.05 Adaptability to Change
Eight Steps to Managing Change: Assessment 3.05 Adaptability to Change Access Criteria Rating Assessment Rationale Establish a Sense of Urgency COI’s have identified a compelling sense of urgency specific to their sub-region; these need to be more widely reinforced Form Powerful Guiding Coalitions Each of the six COI’s has a functioning leadership team, however this number needs to grow substantially Create a Vision 3 of the 4 COI’s did “visioning” as part of the Milestone 4 process; these also need to be more widely reinforced Communicate the Vision These visions need to be encapsulated and shared with a increasingly larger numbers of region citizens Empower Others to Act on the Vision Most COI subteams worked well together; CSI & COI leaders have not effectively expanded the base of champions beyond a core group — more are needed to reach the Tipping Point Plan for, Create & Communicate Short Term Wins Many short-term wins have been identified; these need to be implemented and celebrated across SI Consolidate Improvements & Produce More Change Decision making structures across SI have not been modified based on use of collaborative processes.Leadership is beginning to revert back to old and familiar command & control formulas Institutionalize New Approaches The Crossing Boundaries Institute and other Phase 2 activities will help spread the effort toward critical mass 70

71 What Changing SI’s Thinking Means
3.05 Adaptability to Change “The pie is not growing” “We can & must grow the pie” FROM: Too many past economic efforts that fizzled out Trading dollars and fighting over the same customers Viewing the adjacent towns as competitors Lack of awareness regarding regional assets or leverage opportunities Continually waiting for the ‘cavalry’ to arrive and rescue us Distrust and cynicism — it’s just a win-lose game Widespread feelings of apathy & powerlessness TO: Real economic growth tracked by tangible metrics Creating whole new markets and customer bases — globally Collaborating across the whole 20 county region Valuing of what makes SI unique & how to leverage this Connecting resources and rescuing ourselves from the ground up Growing trust and realizing true synergy Widespread feelings of success and even greater potential Collaboration builds critical mass and creates a climate of unlimited economic opportunity!

72 3.05 Adaptability to Change
What Needs to Change? 3.05 Adaptability to Change In order for SI to create a true Climate of Opportunity, several shifts have to occur: From deeply held beliefs that you cannot change the circumstances of your economy or community to a new deeply held belief that we can change by leveraging the unique value and self-worth of everyone in SI From multiple, separate, town-based, silo structures & territorial thinking to regional connected structures that cluster across the value chain From concentrated power & the limiting behaviors of the past to ‘flat-world’ behaviors of collaboration, flexibility, 24/7, rapid actions, nimbleness and trust For Connect SI this translates into three immediate and high priorities: Expand the leadership base of believers & doers one-by-one Expand the base of collaborative funding Communicate, communicate, communicate the sense of urgency, vision, short-term wins, what needs to change, this RA and your strategy

73 Applying the Principles of “The Starfish and the Spider”
3.05 Adaptability to Change This insightful book provides ten rules for moving from a Spider organization (aka centralized power and hierarchical structure) to a Starfish organization (aka decentralized, amorphous, virtual network of collaborators) Diseconomies of Scale — being small can be better due to nimbleness The Network Effect — overall value of the network increases with each added member The Power of Chaos — stimulates creativity and freedom of choice Knowledge at the Edge — the ‘front-line’ in the rank & file of an organization has the best understanding of the challenges it faces Everyone Wants to Contribute — give folks the freedom to contribute and they will (e.g., Wikipedia) Beware the Hydra Response — Starfish organizations are not easy to ‘kill’; they keep replicating themselves and spreading Catalysts Rule — they inspire people to action, and leave before power gets centralized around them The Values are the Organization — take away a Starfish’s ideology and the organization will crumble Measure, Monitor and Manage — done by a catalyst: a combination of architect, cheer-leader and awe-struck observer; it’s better to be vaguely right than precisely wrong Flatten or be Flattened — if you can’t beat them, join them; what looks like entropy at first, turns out to be one of the most powerful forces the world has seen Starfish organizations are a key strategy SI can deploy to leverage its unique assets across the region — see Chap 4 for a Starfish-based Innovation Eco-System and Comprehensive Connect SI Community & Economic Development Strategy for more detailed recommendations (to be posted in Feb 2008) Source: Starfish and the Spider, Brafman & Beckstrom 2006

74 Summary: Fertile Ground to Change
3.05 Adaptability to Change Citizens across SI do see the stark reality and understand what needs to change The good news: Awareness of this reality goes far and wide Folks, young and old, want SI as a region to finally deal with this The bad news: There is a deeply held belief that neither individuals, nor SI as a whole, will change 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: The concept of One Region-One Vision is gaining traction There are pockets of prosperity — so it can be done Short-term wins across SI are providing further “proof” that the collaborative approach works — building momentum is key Remember Pogo: “We’ve met the enemy and he is us!” The TIME is now; the CHOICE is yours — all it takes is will and leadership If you’re going to have a self-fulfilling prophecy, let’s make it a great one!

75 Chapter 3: Enabling Environment
Southern Illinois — "Garden of the Gods" Chapter 3: Enabling Environment 3.06 Implications & Recommendations

76 Enabling Environment by Sector (1 of 3)
3.06 Implications & Recommendations Attributes in Place for Success Roadblocks in the Way of Progress Global Workforce Opportunities A robust inventory of education and workforce development programs and facilities Central North American location A history and connections to oversees students, governments, educational institutions and businesses No comprehensive strategy and funding system linking K-12, college and University programs to a measurable goal Weak linkage and collaboration between business and education Limited 24/7 availability of continuing education programs at graduate level KBE Employment and Businesses Natural amenities and location advantages support KBE firms & workers A major research University within region with tech-transfer opportunities Affordable cost of living Non-existent reputation of SI as a knowledge-based economy State economic development programs focusing on traditional businesses No community development standards that result in lack of predictability Senior Living Lower cost of living supported by a mild climate, lots of active recreation options Multiple life long learning assets Growing cultural and unique events in the region Improved network of healthcare assets Reputation of limited access and quality of healthcare Low property curb appeal and quality of public spaces Narrow understanding of senior living trends and impacts

77 Enabling Environment by Sector (2 of 3)
3.06 Implications & Recommendations Attributes in Place for Success Roadblocks in the Way of Progress Energy and Mining One of the largest reserves of coal resource in North America An expansive knowledge base and research regarding energy, coal mining and oil extraction Significant state and national attention and resources targeting alternative uses for traditional energy Lack of a clear strategic direction with a defined benefit to industry Economic development approaches are focusing on extraction with limited attention to KBE possibilities The energy industry have faced multiple and complex challenges over the past few decades that have created more competition and less collaboration Tourism Multiple unique natural tourism attractions A robust collection of historical locations and knowledge Examples of successful tourism collaborations in the region; Wine Trail Financial resource generators are in place to support a region-wide effort Location & climate advantages Lack of regional tourism coordination and trust reduces the regions ability to attract attention Policies and funding systems support a traditional territorial approach to tourism organizations which creates a climate of competition rather than leverage Lack of balanced and modern tourism infrastructure around the region

78 Enabling Environment by Sector (3 of 3)
3.06 Implications & Recommendations Attributes in Place for Success Roadblocks in the Way of Progress Transportation, Logistics and Warehousing Geographic location, with multiple highway, rail, marine and air transportation assets A significant industry base and critical mass exist to build upon Inland waterway trends are positive Projects and infrastructure expansions have been done independently without connection to other assets Lack of comprehensive planning Disaggregated workforce and labor issues Climate of Economic Opportunity Connect SI as a framework for a new economic direction and strategy for the region Creating region-wide collaboration Articulating the vision of the future Development of a strategy and measuring progress and impact Prioritizing application of resources in the optimum manner Tracking and informing the region of national and global trends Identifying and applying the best resource for a favorable impact Belief that economic pie of opportunity is very limited. If we share we lose. Some would rather be in control of a smaller economy rather than share control in a larger economy Public policies have not shifted to meet the needs of a changed economy Multiple governmental jurisdictions hinder the regions ability to collaborate

79 Enabling Environment Implications
3.06 Implications & Recommendations Lack of collaboration is hampering prosperity Creates a climate and reputation of conflict and distrust Results in an inability to fund or achieve project success due to lack of resources Listless business climate for retention and attraction Illinois’ court system is rated as unreasonable to business Multiple government and taxing districts cause a confusing business environment Telecommunications expansion is a marketable opportunity The recent expansion of broadband service, supported by a clearly defined goal is positioning SI for KBE growth and attraction SI’s natural environment is not valued or leveraged by a sufficient number of its citizens or leaders The region has the largest concentration of natural environment assets in the Mid-west, but is not returning its share of benefit Reluctance to change will guarantee an atmosphere of dependency The new 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 Rural regional economies that can effectively meet the workforce needs and business demands of a KBE economy will be the envy of others 79

80 Enabling Environment: Recommendations
3.06 Implications & Recommendations Improving the enabling environment is the key to addressing SI’s Big Dilemma The results of the Readiness Assessment clearly demonstrate that SI behavior and mindset is the only thing standing in the way Without the changes proposed in this chapter, SI will be far less able to leverage its unique indigenous resources to take advantage of current global and national trends Our primary recommendations: #1 — Incorporate collaborative funding as a fundamental part of the DNA of SI #2 — Create a Crossing Boundaries Institute linked into existing leadership programs #3 — Implement a regional multi-media branding strategy for internal and external markets #4 — Implement a Youth Engagement Strategy #5 — Implement broadband connectivity infrastructure and digital literacy strategy #6 — Establish a Comprehensive SI Data Mining Portal that is a model for Illinois #7 — Develop an SI livable community forum See Chapter 7 for more detailed recommendations The successful transformation of SI from a limited to an unlimited growth economy depends upon the ability of the Region to change it’s thinking & behaviors

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