Ed Morrison’s Garage

A site for early ideas on open source economic and workforce development 

What a managed regional network looks like

Today, in Evansville, I will be talking to a core group of regional leaders from a three state region touching Indiana, Illinois and Kentucky.

Top of mind, I suspect will be their concern about how you manage a complex strategy in this large a region. I will be showing them the attached drawing, which illustrates how we managed a 14 country region around Purdue.

Thomas Malone from MIT calls this organizational structure a "loose hierarchy". I prefer the term "managed network".

(download)

Loading mentions Retweet

Comments [0]

The networks needed for regional competitiveness

Building prosperity in a network-based economy requires us to align, link and leverage assets within five different types of networks. These networks include: brainpower networks; innovation out or ship networks; quality, connected place networks; strategy and narrative networks; and civic leadership and collaboration networks.

Notice that this framework transcends the old categories of community development, workforce development, economic development, and physical planning. These are old categories, largely defined by state and federal governments decades ago. Thinking in these terms simply replicates the "silo" mindset that inhibits the formation of new networks.

Think of this representation as a "strategy base map". A community or regional strategy can be plotted on this map. All of the assets within the region can be mapped on this map. Regional outcomes can be depicted on the map. I have also used the map to show civic leaders their portfolio of investment.

The map provides a good tool to see whether a community or regional strategy is balanced and connected.

Presenting a regional economy in terms of these five networks has certain advantages. Most important, the representation is inclusive. Virtually anyone in the community or region interested in building prosperity can find themselves somewhere on this map. The map also demonstrates how more elaborate strategies build out from a core. 

The framework also shows the danger of fads. Richard Florida, for example, preaches the importance of creative people, but he is promoting only a partial solution to building a balanced, competitive economy. 

(download)

Loading mentions Retweet

Comments [0]

The regional transformation toward open innovation

Yesterday, I went on a whirlwind visit to the Penn State and the wonderful people at the Office of Economic and Workforce Development: http://oewd.psu.edu/

During my presentation, I introduced a framework for thinking about how regions evolve toward open innovation. The first horizon involves changing the prevailing narrative to emphasize the importance of collaboration and finding new pathways. The second horizon involves establishing one or more civic spaces and practicing civility. During this phase, regions start uncovering their networks.
In the third phase, a region starts moving toward more strategic habits of thinking and doing. They abandon old models of strategic planning and begin to learn faster, more agile disciplines of strategic doing. At the fourth horizon, regions establish a regular process of conducting strategic conversations and translating ideas into action. They continuously update their strategic action plan.
In the region around Purdue, we have gone through these four phases, and we are now continuing this work. Other regons around the country are at different points in their transformation.
In my talk yesterday, I focused on what universities can do to move regions ahead.

Loading mentions Retweet

Comments [2]

Speaking this week at Penn State

This week, I have the wonderful opportunity to introduce my work on open innovation and strategic doing to my colleagues at Penn State.

I'll be focusing my talk on the stages of development that regions move through as they first discover and then embrace more open models of collaboration and strategy.

(download)

Loading mentions Retweet

Comments [0]

Exploring regional innovation more deeply

1What Matters_ Mapping innovation clusters

A while back some folks at McKinsey published an interesting — albeit incomplete — map of “innovation clusters”. At the Purdue Center for Regional Development, we’ve been spending a lot of time looking an how regions establish “ecosystems” that support open innovation. You can see some of our latest work here.

The McKinsey map is interactive and it accompanies a good article on innovation. The authors have read too much into their data, so their grand categories are flawed. At the same time, they do a good job of recognizing the different types of formation patterns.

The key issue, from my perspective, is the role of universities in shaping the regional innovation landscapes. For too long, economists have been focused too narrowly on patents — because the data are available and easy to measure — or on small business births (or a subset, spin-outs), also easy to measure.

An effort is now underway among universities to develop a better description of how they leverage knowledge in a region through a range of activities. Penn State has been convening a group of universities, including Purdue, to explore these issues. As Sean Safford at the University of Chicago has clearly outlined in his comparison of Akron and Rochester, universities shape their role in regional economies differently.

You can access the McKinsey article here:

Building an Innovation Nation

Loading mentions Retweet

Comments [0]

The power of economic transformation: Oklahoma City circa 1993

To show you what's possible and economic development, let me take you back to 1993. For a decade, Oklahoma City had been caught in a backwater. The collapse of oil prices in the early 1980s sent the economy into a slow walk.

By the mid-1990s, a new mayor, Ron Norrick, began to shift the attention of the leadership in the city toward a new future based on investment of both public and private dollars.
He came up with a bold plan called MAPS. A dynamic publicly led economic developer strategy, MAPS created some key infrastructure investments and established new anchors to guide development in downtown.

At the same time, the Greater Oklahoma City Chamber of Commerce hired me to design a companion economic strategy, one that was privately-led and publicly-supported. Our privately-led strategy focused on diversifying the economy, as well as stimulating the type of private investment needed to build a vibrant downtown. My friend Charles Van Rysselberge headed the chamber and helped me design a strategy for the Chamber that could work. (Charles is now head of the chamber in Charleston, SC and doing remarkable things there.)

I remember the day the Chamber selection committee interviewed me and later told me that they had decided to hire me. Staring out on a sterile cement courtyard next to the downtown parking garage where the chamber was located, I remember distinctly thinking to myself, "What have I gotten myself into?"

Slowly, a small group of us went to work to build a new strategy for Oklahoma City. We worked to get MAPS passed by the voters, and to raise the $15 million we needed for the Chamber's strategy. It was a difficult time because I was certain that some of the board members of the chamber actually wanted us to fail.

Here's how bleak it was. A couple of years ago, civic leaders in Lexington, Kentucky asked me to accompany them to Oklahoma City to learn about how a city transforms. I got a chance to have lunch with former Mayor Norrick. I recall telling him that in the depths of the 1990s, when we were just starting out, there were days when I was staying at the downtown hotel, and I was convinced that I was the only person in the hotel. Ron looked at me and said, "You probably were."

A few weeks before we were to launch our strategy, disaster struck with the Oklahoma City bombing. Nobody predicted what would happen, but the tragedy actually strengthened the city and the resolve of its leaders.

Fast forward 10 years, and you can see how the combined strategy of the City in the Chamber transformed Oklahoma City.

Now if you go to downtown Okalhoma City you will see a vibrant city. All of this is possible with sensible strategies that focus on leverage points and opportunities that emerge from connecting assets.

Memories of staring out at blank cement came to mind when I saw a new article in Fast Company magazine on the transformation taking place in Oklahoma City. The economic transformation has been remarkable. http://bit.ly/c6fDog

Here's a graph the shows how per capita incomes rose started to accelerate about 2002.

(download)

Loading mentions Retweet

Comments [0]

The Rural Roots of Strategic Doing

Yesterday, in a conversation with a friend, I had a chance to recall how some of the basic practices of Strategic Doing emerged from my work in rural counties in Kentucky and Louisiana.

By the mid-1990s, the pressures of globalization were hitting rural counties hard, especially in the South. The reason was simple. In the first wave of industrial decentralization after World War II, manufacturers moved from major urban centers to low-cost locations, mostly in the rural South. (This migration actually started during World War II, but the construction of the Interstate Highway System accelerated the move.)

In the early 1980's U.S. multinational companies began developing global manufacturing networks. (During these early years of the 1980's, I was working for a corporate strategy consulting firm, and much of my work with clients like General Electric involved shutting down U.S. plants and moving them to low cost locations, like Mexico.)

By the 1990s, the inexorable pressures of globalization pushed more of these manufacturers to even lower-cost locations offshore. Southern counties saw an accelerating loss of shoe, textile and apparel plants, in much the same way that the New England states lost their manufacturing base a generation earlier.

For seven years, beginning in the early 1990s, I led an initiative for the Kentucky Cabinet for Economic Development, called their community assessment program. Under this initiative, we assembled teams of volunteer economic development professionals to conduct two-day assessments in Kentucky's poorer counties. These were places left largely untouched by the prosperity emerging in Kentucky's metro areas.

We conducted 3 to 4 assessments a year. We would move into the county for two days and compile a strategic action plan. Six months later, we scheduled a follow-up visit. Over the years, we conducted 23 assessments. The Cabinet later determined that 18 of these assessments led to measurable progress.

We were successful because we focused our strategies on the basic principles that now shape Strategic Doing. First, we leveraged the competitive strengths of the county. We started our assessment with a focus on assets. We built our strategies around people with a track record for getting something done.

Second, we quickly defined clear outcomes, measurable results, and next steps. Our assessments were not "visioning" sessions. They were strategy sessions designed to focus on a limited number of potentially transformative initiatives.

Third, we built a narrative. Stories help us understand the complexity we face. Building a strategy really amounts to telling a story. We designed these narratives quickly -- over a period of two days -- to demonstrate that the process of developing a strategic action plan does not take weeks or months. The authenticity of these narratives played a large role in keeping people focused and moving forward.

So, for example, in Estill County, we identified the importance of strengthening the leadership base within the community. In Spencer County, we brought together a new network of leaders determined to preserve the rural character of the county against the relentless pressures of ex-urban sprawl.

In Lewis County, Kentucky we confronted the very serious problem of a shoe factory closure which left largely illiterate factory workers unemployed. In Pike County, we leveraged the strength of the regional hospital to develop new initiatives for transformation. In Ohio County, we confronted the challenge of strengthening the civic habits of collaboration without which not much is possible.

Throughout these experiences, I confronted the gritty details that often determine whether a strategy works or not: a self-absorbed county judge, an economic development professional with a drinking problem, business leaders unwilling to talk to each other, political leaders trying to undercut each other, tightfisted elites unwilling to change.

I took many of the lessons that I was learning in Kentucky and applied them to my work in Louisiana.

  • In Ascension Parish, Louisiana, the strategy process focused on building momentum for the enactment of parish wide zoning. To cut through the fear that surrounded enactment of a zoning ordinance, we defined clear outcomes.
  • In West Feliciana Parish, we addressed the challenge of an outdated parish government largely controlled by the descendants of the planter class.
  • In Ouachita Parish, we confronted the racial challenges of crafting a shared strategy. Through it all, I learned that -- now matter how desperate the situation appears at first -- you can find the threads you need to weave a new picture of the future.

Here is an example of the strategic action plans that I generated with my colleagues to give you some sense of the rural roots of Strategic Doing.

(download)

Loading mentions Retweet

Comments [0]

Defining a new language system for education and workforce development

One of the major challenges we face in strengthening a region's competitive performance comes in defining new career pathways. .
That requires developing the new language of skills and career pathways. The language will be more precise, measurable. In addition, the new language will be much more visual. Because of the complexity, we will turn to visual representations to define these pathways.
Last week, we launched a new initiative in Will County, IL to build these pathways. Here's an example of the types of ideas we are working to develop. We see multiple applications in assessing career options for dislocated workers, charting career options for high school students, evaluating composite curriculums for clusters, and strengthening communication links between business managers and educators.

Loading mentions Retweet

Comments [0]

Kokomo Innovates

Yesterday, we moved our WIRED initiative forward. (WIRED stands for Workforce Innovation in Regional Economic Development, a DOL initiative under the Bush Administration.
We are now launching the Hoosier Heartland region. Kokomo is the capital of the Hoosier Heartland. Here's what we've been doing to transform our region. This initiative is one of over fifty we have launched.

Loading mentions Retweet

Comments [0]

Energy efficiency and conservation strategy for Shreveport: An application of Strategic Doing

Last week, I was down in Shreveport with my colleague Kim Mitchell. Kim and others are designing an open strategy process for energy efficiency and conservation across the city.
I include an Appendix of the submission they have prepared for the Department of Energy. It does a very good job in illustrating how strategy in open networks is flexible, adaptive and iterative.

(download)

Loading mentions Retweet

Comments [0]