Re-engagement networks and the NASA Shuttle shutdown

You may have read about the economic dislocations which will take place when the space shuttle ceases operations. President Obama was down in Florida recently to announce his plans for NASA after the shuttle.

You can imagine that the folks in Florida are trying to figure out "what's next?"

The scope of these dislocations overwhelms the capacity of the traditional unemployment and workforce development systems. Those systems have handled -- with relative degrees of success - the economic downturns embedded in the business cycle. But they are not geared for the deep transformations taking place in our economy today.

You can see the challenges, as I do, in the streets of Kokomo, or any Midwest auto community.
To address these challenges, we began to think about what a new system of economic adjustment -- economic re-engagement -- would look like. We designed re-engagement networks and set our challenge in a different light: In communities facing major transformations, we need to design and strengthen different types of re-engagement networks. This kind of thinking heads us in a different direction -- away from the transactional, social service model that provides the foundation for our current systems.

This traditional approach no longer works.

Here's some additional background: http://snurl.com/vw1xq

Today, we expect 250 people. We will be focusing our strategic doing session on developing "re-engagement networks", a concept we developed at Purdue to handle the transformations we are undergoing in places like Kokomo. Here's a card we sent to participants earlier this week. I've also included the slides I'll be using this morning.

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Translating a strategy into action with strategic doing

Strategic doing is a flexible framework that provides a powerful way to translate a strategy into action. Here's an example. 

The AIM2WIN region across Minnesota, Wisconsin and Iowa used strategic doing to help civic leaders launch their strategy. We designed the strategic doing workshop to translate their strategy documents -- developed through a series of reports -- into a set of pragmatic strategic action plans. 

I include a strategic doing pack for one of the strategic focus areas. This strategic doing pack shows you how we guide strategic conversations using timed workshop exercises. 

(Like all the material on edmorrison.com, these slides are distributed under a Creative Commons 3.0 attribution license. That means you are free to modify, copy and use this material for commercial purposes. I ask only that you tell people where you got it. You can attribute these slides as follows: Source: Ed Morrison www.edmorrison.com, Distributed under a Creative Commons 3.0 license.)

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Economic Development: Managing three flows of money

Economic development is about managing three flows of money. "Good money" flows into an economy from businesses that trade outside the community or region. These businesses (which economists call an economy's economic base). 

 "Neutral money" represents the flows circulating within the economy. Economists measure this velocity in terms of an economic development multiplier.  "Bad money" leaks out of the economy when talented people leave or residents make purchases outside the economy that they could make locally. 

An economic development strategy should outline a path to increase the flow of good money; increase the velocity of neutral money; and reduce the flow of bad money. 

I've used this explanation of economic development to break us out of our old patterns of thinking in silos: community development, rural development, economic development, workforce development. 

These old categories are reinforced by traditional federal government programs: community development (Department of Housing and Urban Development); rural development (Department of Agriculture); economic development (Department of Commerce); workforce development (Department of Labor). 

The categories create cleavages within a regional economy that undercut sensible strategies. They are made worse by the lack of experience that federal agencies have in collaborating with each other.  

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The ten rules of Synching

These are the slides that guided a keynote presentation at the Spring 2010 meeting of the California Workforce Association. The conference theme -- Synch or Sink -- focused on the importance of deep collaboration. 

To illustrate this theme, Virginia Hamilton, and John Baker, the conference organizers, arranged for a performance of synchronized swimming. The keynote also tracks this theme. I converted my slides to a video.

Here are the ten rules of Synching:

1. Guide conversations
2. No whining
3. Create a civic space for complex thinking
4. Stop looking for permission
5. Close triangles
6. Go slow to go fast
7. Don't fear the invisible fences
8. Take the Shanghai perspective
9. Help someone to help someone
10. Practice strategic doing

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Open innovation in regional economies

A group of us at Purdue, Penn State and The University of Akron are working on new frameworks for open innovation in regional economies. We are developing a network of practitioners at colleges and universities across the country who are positioned to accelerate innovation in regional economies.

Here's a framework that can help regional leaders understand the interplay of investments required to build an innovation economy. With this framework, regional leaders can map their current strategy, as well as evaluate new strategies. From another perspective, this framework specifies the different dimensions of what some are beginning to call an "entrepreneurial ecosystem".

In today's quickly shifting economy of networks, coherence is more important than vision. That's why these visual tools are important. They provide the strategy maps we need to organize both thinking and action in loosely joined networks.

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Introducing a new approach to strategy to a rural Indiana county

Last week, I was in Morgan County, IN to introduce a group of civic leaders to the disciplines of strategic doing. Jon Speer, my host along with Home Bank, took some notes and video of the session. 

Morgan County is one of the counties surrounding Indianapolis, to the southeast. For the geologically inclined, Morgan County marks the boundary where the glaciers stopped advancing during the Ice Age. 


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John's notes: 

  • Old economic development model, which is primarily recruiting, no longer works in a global economy. Rural communities are suffering because of this.
  • Children are the guides to the “new world”. Focus is on connections and networks.
  • Our grandfather’s economy was centered on moving stuff (e.g. coal, grain, steel)
  • Our grandkid’s economy is knowledge-based--knowledge of networks. The challenge is to connect our grandfather’s resources with grandkid’s knowledge.
  • Brainpower creates a competitive advantage. Converting brainpower to innovation, technology, and entrepreneurship leads to wealth creation.
  • Strategic Planning invented by our grandfathers. It’s dead (or at least dieing).
  • Strategic Doing created by grandkids. Set a direction and move towards it.
  • Strategic Doing cycle: 1) What could we do? 2) What should we do? 3) What will we do? 4) How will we learn?
  • Strategic Doing has no hierarchy--no permission necessary, no gatekeepers, no veto power within the network.
  • Strategic Doing priorities: 1) Generating brainpower / talent; 2) Support innovation / technology; 3) Create healthy environment; 4) Establish new networks; 5) Personal improvements from collaboration.

Jon's videos: 

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New tools for understanding regional innovation and competitiveness

A team, led by the Purdue Center for Regional Development, has developed some new, more flexible tools for understanding regional innovation and competitiveness. The project team, on which I served, represented a collaboration among Purdue, Indiana University, the University of Missouri and EMSI, an economic modeling company.

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Strategic doing to chart pathways for a New Workforce

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My colleagues Linda Fowler and Hamilton Galloway are making a presentation next week to the Heartland Conference, an important workforce development conference that covers the Midwest region.

In their presentation, they will be outlining some of the work that we've been doing in Southeast Wisconsin and in Will County, Illinois. Linda, Hamilton and I are working to develop new frameworks, methods and tools that can bridge the gap between economic and workforce development and among educators, workforce development professionals, economic development professionals and business executives.
It's a tall order.

In our approach, we are merging both new thinking about strategy in open networks -- strategic doing -- with new tools to help define and strengthen the career pathways for individuals to follow. A large part of this task involves designing a new visual language that can connect educators, economic and workforce development professionals, and business executives.

One of the biggest challenges we face is the inadequacy of our current set of tools. Employers cannot easily express what they need in a new hire. Educators cannot quickly evaluate the content of their curriculum in terms that make sense in the workplace. Workforce development professionals labor under a system of measurement that is clumsy and outdated. And economic development professionals are generally ill-equiipped to deal with workforce issues.

The slides above outline the current status of our work.

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What open networks and strategic doing could teach Obama and Congress

By now it's pretty clear that most people are not happy with the ways of Washington. A Washington Post article speculates on the reasons why Congress and the President have been having so much difficulty addressing the major issues of today -- what the administration refers to as "Grand Challenges". 
The article got me to thinking. What lessons could open innovation teach Congress and the President about addressing important public issues are also complex and messy? How could we apply the principles strategic doing -- guiding strategy in open networks -- to Washington's broken policy process?  After all, the principal players in the Washington policy process -- Congress and the Administration -- form an open network in which nobody can tell anyone else what to do. How could leaders guide this network strategically?

What if we viewed Washington's policy breakdown from the perspective of open networks?

I came up with three lessons.

Lesson 1: Define your outcome with a handful of clear characteristics. 

To mobilize the resources in an open network, leaders help the network define clear outcomes with concrete characteristics.  In a network, leaders focus delivering coherence (which is something more than a vision). A network's coherence emerges from answering two questions: Where we going? How will we get there? In the case of NASA's moon mission, President Kennedy answered the first question, while the NASA administrator answered the second.

The problem we are facing in the health care debate arises from our leader's inability to outline clearly where we are going and how we will get there. We don't really know what comprehensive health reform looks like. We have no wide agreement on the characteristics of this reform. 

Unless members of the network can both see and feel deeply connected to where they're going, they will not move. Clear outcomes give us the metrics we need to define what success looks like. Defining outcomes is an iterative process, as members of the network refine their thinking, learn the lessons of "what works", and evaluate what's possible. 

Even so, defining a clear outcome goes only part way to creating coherence for the network. 

Members of the network also need to be convinced that there's a practical pathway to get from here to there. In the health care debate, the process has become a mishmash of ad hoc steps. Not surprisingly, the public is lost confidence in our leadership. We don't have  a clear idea where we are going, and we utterly confused about the process. 

Lesson 2: Design a simple, coherent process with clear next steps. 

In open innovation, the quality of the process drives the quality of the product. Over the last number of years, we have watched as the legislative process has slowly broken down. Arguably, the roots of this breakdown reach back to the 1970s. The legislative process that gave rise to major domestic initiatives in the 1960s bears little resemblance to today's Congress. 

(In 1975, while a legislative assistant to a member of the House Ways and Means Committee, I wrote about the early disintegration of the tax legislative process. The article, which appeared in the Harvard Journal on Legislation, focused on how structural changes taking place in the House undercut traditional approaches to complex legislation.) 

To my mind, there is little chance that Congress will be able to fix its process any time soon. But the recent health care summit between the President and key members of Congress opens a window to a more promising future. The President and Congress could easily convert this event into a process. By meeting every 90 days, they can keep us all focused on articulating clear outcomes -- Where are we going? -- and set reasonable 90 day next steps -- How will we get there? 

These regular policy gatherings can be open so the public can attend and submit questions (a hybrid of the town meeting format). At the same time, the public will be able to see leaders grappling with the hard issues and, at the same time, getting something done. Conducting strategy in open networks is all about following simple disciplines to guide complex conversations.

Lesson 3: Go slow to go fast. 

As we shift our thinking toward networks, we encounter seeming paradoxes. One of the most arresting to my mind is that we need to move slowly at first to go faster later. It all has to do with building trust in an atmosphere of transparency. We build trust through our behavior. 
By taking small, consistent steps that other people observe, we build trust. Taking small, fast steps is important, because trust grows on a foundation of constancy.  

Trust powers open networks. As trust builds, speed accelerates, not linearly, but exponentially. The capacity to take on complex tasks multiplies. Executing a strategy in open networks is all about translating big ideas into small next steps -- continuously. 

Right now, the legislative process in Washington doesn't work because trust has collapsed. To rebuild trusted relationships, the President and Congress need to focus less on winning the grand policy debate (which inexorably dissolves into talking points) and more on taking small steps toward clear outcomes. 

Reforming Washington's policy process

How could we reform Washington's policy process to follow the principles of strategic doing? In complex areas like financial reform, health care reform, immigration reform and education reform. the process should be punctuated by day long gatherings between the President and legislative leaders every ninety days. These gatherings can be structured to refine outcomes and set ninety day goals for both Congress and the Administration. The public and press, as both observers and participants, would be free to blog the session during the day. 

To imagine how this suggestion would work in practice, think of a week devoted every ninety days to aligning the interests of Administration and Congress on the Grand Challenges. On Monday, the President and Congressional leaders meet on education reform. On Tuesday they take on financial reform. On Wednesday, it's health care. On Thursday, immigration reform. On Friday, the President and Congressional leaders focus on the budget deficit. 

In each of these gatherings, the session begins with a brief review of where we stand. The agenda then moves the participants to focus on the key issues of outcomes and initiatives: where we ere going and how we will get there. The meeting next turns to the commitments that Congress and the Administration make to move forward their common agenda over the next ninety days. The last critical issue involves setting the date and place for the next meeting. 

Each session could then end with the press and members of the public asking questions of the participants: an open press conference. The Administration and Congress would commit to reporting their progress on these issues to the American people every ninety days. So, we would have a strategic action plan on health care, for example, that would be continuously refined and updated as legislation is enacted.

Can these reforms work? Only if Congress and the Administration can follow some simple rules. Strategy in loosely joined networks boils down to following a discipline. Open networks can achieve remarkable innovation to meet incredibly complex challenges. But we need to follow some simple rules. Establishing some rules of civility to govern the quarterly policy meetings is a good place to start.

Congress and the Administration have lost the ability to do complex thinking together. The good news is that it costs nothing to move in a new direction.

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The strategic challenges facing Midwest auto communities

Midwest auto communities face a serious time lag. They must build the foundations of a 21st century economy with policy tools developed for a 20th century economy.  Pouring the existing array of federal programs out on the table is a bit like asking an auto mechanic to repair an electronic ignition system with a pair of rusty pliers.

Federal investments are and will continue to be important to financing the transformation of the Midwest’s auto communities. But money alone is not enough. These communities need innovation – new collaborations and networks that can deliver solutions to their strategic challenges. These solutions, to be transformative, must be replicable, scalable and sustainable.  

On March 12, 2010, the Brookings Institution convened four Midwest regions that have been hit hard by downsizing in the domestic auto industry. This session, the “Auto Communities Roundtable”, reviewed different strategies at work in Mid-Michigan, Southeast Michigan, Central Indiana and Northeast Ohio.

The Roundtable participants explored new partnership opportunities among their region, the federal government and national foundations.  You can explore the materials prepared for the Roundtable on this page: http://drop.io/autocommunities

Based on my reading of the presentations in this session, Midwest auto communities need innovative investments in five areas of strategic focus: 

1. Brainpower and Talent: Transforming antiquated education and workforce development systems to be more innovative, flexible and productive.—

 Our current systems produce low rates of literacy, high rates of drop-outs, and weak post-secondary technical skills. We need to develop systems that are more focused on 21st century skills, experiential learning, career pathways, and post-secondary certificates and degrees. 

 2. Innovation and Entrepreneurship: Building responsive supports for innovative companies and entrepreneurs to develop new products and markets. –

 Auto communities need a new generation of economic development supports for existing companies and entrepreneurs. By concentrating on new products and new markets, these firms can reliably grow an economy from the inside out.

 3. Quality, Connected Places: Creating quality, connected hubs of mixed-use investment, while managing the shrinkage of their city. --

 The physical development of auto communities focuses on stimulating economic growth through regeneration and reuse.  This challenge involves balancing abandonment and shrinkage with developing connected concentrations of mixed-use investment.

 4. New Narratives and Networks: Promoting new narratives and clusters of innovation anchored by colleges and universities.—

 The next economy for auto communities will link and leverage the technologies, production capabilities and assets that emerged from building automobiles and parts. These strengths will be combined in open networks of innovation that support the development of high growth firms. 

 5.  Leadership and Collaboration: Strengthening civic habits of collaboration and new forms of regional governance.—

 Midwest auto communities face gaping budget deficits as the cost of public services has outrun the ability of local governments to generate revenue. Innovation in providing government services, not simply cost cutting, points the way ahead. 

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