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Cetys Mexico 2

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Slides for the workshop in Open Source Economic Development

Slides for the workshop in Open Source Economic Development

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  • 1. New Maps for a Flat World: New Roles for Higher Education in Regional Economic Development November 3-4, 2008 Ed Morrison Purdue Center for Regional Development Institute for Open Economic Networks (I-Open)
  • 2. Economic Development in 60 seconds Economic Development in an Nutshell Good Money: Increase the volume of 1 income into the region with competitive traded businesses Rest of the Neutral Money: Increase the velocity World 2 of money circulating in the region with local businesses to create more jobs 1 3 Bad Money: Reduce income leaks Sales by reducing outside purchases, workers who move out, and students who drop out Traded Another Businesses region 2 Purchases and paychecks Brain Drain and Purchases Local Businesses 3 Your eco Drop Outs nomy Dependency Source: Ed Morrison, David Morganthaler
  • 3. Economic Development in 60 seconds Economic Development in an Nutshell Good Money: Increase the volume of 1 income into the region with competitive traded businesses Rest of the Neutral Money: Increase the velocity World 2 of money circulating in the region with local businesses to create more jobs 1 3 Bad Money: Reduce income leaks Sales by reducing outside purchases, workers who move out, and students who drop out Traded Another Businesses region 2 Purchases and paychecks Brain Drain and Purchases Local Businesses 3 Your eco Drop Outs nomy Dependency Source: Ed Morrison, David Morganthaler
  • 4. Economic Development in 60 seconds Economic Development in an Nutshell Good Money: Increase the volume of 1 income into the region with competitive traded businesses Rest of the Neutral Money: Increase the velocity World 2 of money circulating in the region with local businesses to create more jobs 1 3 Bad Money: Reduce income leaks Sales by reducing outside purchases, workers who move out, and students who drop out Traded Another Businesses region 2 Purchases and paychecks Brain Drain and Purchases Local Businesses 3 Your eco Drop Outs nomy Dependency Source: Ed Morrison, David Morganthaler
  • 5. Economic Development in 60 seconds Economic Development in an Nutshell Good Money: Increase the volume of 1 income into the region with competitive traded businesses Rest of the Neutral Money: Increase the velocity World 2 of money circulating in the region with local businesses to create more jobs 1 3 Bad Money: Reduce income leaks Sales by reducing outside purchases, workers who move out, and students who drop out Traded Another Businesses region 2 Purchases and paychecks Brain Drain and Purchases Local Businesses 3 Your eco Drop Outs nomy Dependency Source: Ed Morrison, David Morganthaler
  • 6. Every few hundred years in Western history, there occurs a sharp transformation. Peter Drucker (1986)
  • 7. Strap on your goggles... Our story begins with the emergence of our Grandfather’s economy
  • 8. A little background...
  • 9. A little background...
  • 10. A little background...
  • 11. A little background...
  • 12. A downward cycle of economic development accelerates with a deteriorating civic environment Business base Deteriorating Civic gets weaker Entrepreneurial Environment activity declines Businesses shrink or leave, start-ups do Higher taxes not arise Well-paid jobs decline Tax base erodes Skilled labor supply shrinks Skilled people move out Civic amenities and infrastructure deteriorate Brain drain as Quality of life young people deteriorates drop out and move out Place develops a bad reputation Source: Ed Morrison
  • 13. A prosperous cycle of economic development accelerates with civic collaboration Build innovation Collaborative and entrepreneur Civic Environment networks Entrepreneurial activity increases New firms emerge, established firms grow Well-paid jobs increase Lower taxes Tax base grows Skilled labor supply grows Skilled people move in Civic amenities and infrastructure improves Quality of life Build brainpower improves with 21st century work skills Build a quality, connected place Source: Ed Morrison
  • 14. Our Grandfather’s economy created enormous wealth through innovation Video available at: http://www.open-video.org/details.php?videoid=4655
  • 15. Our Grandchildren’s economy is emerging around networks Video available at: http://www.youtube.com/watch?v=_MeJ0dHIEfA
  • 16. The S-Curve caught up to our Grandfather’s economy ‣ Global markets integrated ‣ Costs collapsed ‣ The Internet exploded
  • 17. What happened in my home town The lesson: Markets don’t lie
  • 18. Our Grandchildren’s economy is emerging with wealth created by networks
  • 19. Our Challenge: Finding the pathways to our Grandchildren’s economy Source: Ed Morrison
  • 20. The networks leading to our Grandchildren’s economy are on this base map Brainpower Innovation 21 Century Talent Entrepreneurship Networks Civic Collaboration Quality, Connected Branding Places Experiences
  • 21. The networks leading to our Grandchildren’s economy are on this base map 1. Brainpower networks Brainpower 21 Century Talent Innovation Entrepreneurship Networks 2. Innovation and entrepreneurship networks Civic Collaboration 3. Quality place networks 4. Branding networks Quality, Connected Branding 5. Collaboration networks Places Experiences
  • 22. Open Source Economic Development Our economy is undergoing fundamental shifts. The integration of global markets, coupled with the explosion of the Internet in the late 1990's, has created a quot;perfect stormquot; of deep economic change. To thrive in this environment, regional economies need balanced strategies that encourage new conversations, networks, and investments in the following areas: Strengthening Brainpower.-- In today's global economy, brainpower provides the only basis for sustainable competitive advantage. This fact presents us with some clear imperatives. Advances in brain science tell us that, in a knowledge economy, workforce development begins with a pregnant mother. Every child needs pre-school education and should be able to read and comprehend well by the third grade. Dropping out of high school creates a lifetime economic disability. Connecting innovation and entrepreneurship Innovative Businesses networks.-- These networks convert brainpower into wealth through new products, new services, new markets. Innovation provides the process and entrepreneurship provides the skills to translate ideas Brainpower Innovation into prosperity. 21 Century Talent Entrepreneurship Networks Building quality, connected places.-- Smart people can live anywhere. They will choose to live in regions Dynamic Clusters that respect sound principles of physical development. Creative People Civic Equally important, quality places have thick Collaboration connections to other people, other markets. Promoting an effective brand.-- Prosperous regions have positive stories to tell. These stories create a Quality, Connected Branding unique experience, a special identity, a common Places Stories understanding of core strengths, a shared view of future opportunities. Strengthening civic habits of purposeful Hot Spots dialogue.-- In a globally connected economy, no one can go it alone. Prosperous regions will develop civic habits of thinking and acting together. Building collaboration and trust carries real competitive Ed Morrison developed Open Source Economic Development. It is advantages: the regions that collaborate will spot freely available under a Creative Commons license. To view a copy of this license, visit http://creativecommons.org/licenses/by/3.0/ opportunities and move more quickly than regions that do not.
  • 23. The “theory of change” behind Open Source Economic Development focuses on aligning networks The challenge is to build and support productive, focused networks around strategic issues Collaboration Innovation Productivity Prosperity Brainpower Innovation networks Quality, connected places Effective branding Collaborative leadership Accelerating cycle Source: Ed Morrison, based on Council of Competitiveness
  • 24. Open Source Economic Development leverages the power of networks
  • 25. Open Source Economic Development leverages the power of networks What’s the value of one cell phone? What’s the value of ten?
  • 26. The “theory of change” behind Open Source Economic Development focuses on aligning networks The challenge is to build and support productive, focused networks around strategic issues Collaboration Innovation Productivity Prosperity Brainpower Innovation networks Quality, connected places Effective branding Collaborative leadership Accelerating cycle Source: Ed Morrison, based on Council of Competitiveness
  • 27. Open Source Economic Development leverages the power of networks
  • 28. Open Source Economic Development leverages the power of networks What’s the value of one cell phone? What’s the value of ten?
  • 29. Part 1: Finding the New Pathways: Workforce Leadership in the Age of Networks Brainpower Innovation 21 Century Talent Entrepreneurship Networks Civic Collaboration Quality, Connected Branding Places Experiences
  • 30. Part 1: Finding the New Pathways: Workforce Leadership in the Age of Networks Brainpower Innovation 21 Century Talent Entrepreneurship Networks Civic Collaboration Quality, Connected Branding Places Experiences
  • 31. Here’s a simple definition of Brainpower
  • 32. Here’s a simple definition of Brainpower Workforce development coordinates the development and delivery of brainpower to competitive companies
  • 33. Our Starting Point: Our Grandfather’s pathways are too rigid, too simple or wrong K through One 12 Career K through 4 Years of One 12 College Career
  • 34. Our Starting Point: Our Grandfather’s pathways are too rigid, too simple or wrong K through One 12 Career K through 4 Years of One 12 College Career
  • 35. Here’s a new Brainpower base map Certificates Pre- K through 2 years Careers K 12 4 years $10.00 per hour Entry level Dependency Cycle Working poor
  • 36. Old, rigid thinking produces too many people below the line. Certificates Pre- K through 2 years Careers K 12 4 years $10.00 per hour Entry level Dependency Cycle Working poor
  • 37. Old, rigid thinking produces too many people below the line. Certificates Pre- K through 2 years Careers K 12 4 years $10.00 per hour Entry level Dependency Cycle Working poor
  • 38. Remember our starting point: Overcoming some potent myths from our Grandfather’s economy The Smart Ones The Not So Smart Ones
  • 39. The world is far more complex...
  • 40. We need innovations to expand flexibility and options Pre School Primary/Elementary/Middle School High School College/University Community Tech Prep Work College Ages K-2 3-5 6-8 0-4 College Prep 4 Year College/University Reading by the end of Career Pathways Grade 2 Science and Math Education Character Education Entrepreneurship Education Drop out prevention Continuous teacher development
  • 41. Open Source Economic Development develops networks with tight cores and open boundaries Forum
  • 42. Open Source Economic Development develops networks with tight cores and open boundaries Forum
  • 43. Open Source Economic Development develops networks with tight cores and open boundaries Forum
  • 44. Open Source Economic Development develops networks with tight cores and open boundaries Forum
  • 45. Part 2: Building Entreprenuership and Innovation Networks Brainpower Innovation 21 Century Talent Entrepreneurship Networks Civic Collaboration Quality, Connected Branding Places Experiences
  • 46. Part 2: Building Entreprenuership and Innovation Networks Brainpower Innovation 21 Century Talent Entrepreneurship Networks Civic Collaboration Quality, Connected Branding Places Experiences
  • 47. Open innovation networks move us to the Second Curve Prosperity Time Anchor Stage 1 Stage 2 Stage 3 Stage 4 Clusters typically Supporting networks Networks continue Cluster continues to start from a begin to form with to form evolve with split-offs seed investment public and private by attracting and outside in a shared support firms and brainpower investment platform 5 to 20 years
  • 48. A strategy map for colleges and universities Provides capital and business Venture development investor and Start-up firms expertise entrepreneur Stage 1 networks Provides research, ideas, Adds new firms entrepreneurship to technology clusters support and smart people from new starts and spin-outs Creates wealth Supports to expand critical Colleges and investment mass of universities smart people Provides R&D partners Supports critical Provides training, mass of smart people technology support to clusters Skilled regional Growth companies talent pool Stages 2, 3, 4 and clusters Supports critical mass of smart people Source: Ed Morrison and I-Open
  • 49. Our Approach • Create regional networks that support entrepreneurship at all levels • Develop stronger connections among support organizations • Increase resources for existing and emerging entrepreneurs
  • 50. Entrepreneurship Strategies Educating Future Entrepreneurs • Entrepreneurship Youth Institute • STEM-Focused Entrepreneurship Summer Camp (2007 and 2008) • Classroom Business Enterprise • Develop Entrepreneurship Program at Regional Career Centers
  • 51. Entrepreneurship Strategies Supporting Emerging Entrepreneurs • Regional Business Plan Competition • Entrepreneurship Business Information Network (eBIN) • Entrepreneurship Support
  • 52. Entrepreneurship Strategies Building Support Organizations • Regional Angel Investor Network • Wealth Transfer/Community Development Venture Capital Fund
  • 53. Entrepreneurship Strategies Encouraging Communities to Be “Entrepreneur- Friendly” • Energizing Entrepreneurship • Entrepreneurship & Innovation Compact
  • 54. Entrepreneurship Strategies Equipping existing businesses to act Entrepreneurially ✓ Eureka Winning Ways
  • 55. Industry Cluster Approach Move Innovations into North Central Indiana Businesses • Identify Strongest Regional Clusters • Identify Relevant Innovations • Recruit Pilot Businesses
  • 56. Industry Cluster Approach Use an Enterprise Wide approach: • Tech Transfer • Technical Assistance • Skill Development at all levels
  • 57. Types of Innovations • Innovations are technologies, processes, business models, operational procedures, systems change • Often Bundles of Innovations rather than a single big idea
  • 58. Cluster Innovations Advanced Manufacturing • Healthcare Cost Control • Energy Efficiency Advanced Materials • Nano-structured Coatings Agribusiness, Food Processing • Supply Chain Innovations
  • 59. Clusters – Additional Initiatives • Green Collar Workforce Certification • Eureka Winning Ways
  • 60. Provides capital and business Venture development investor and Start-up firms expertise entrepreneur Stage 1 networks Provides research, ideas, Adds new firms entrepreneurship to technology clusters support and smart people from new starts and spin-outs Creates wealth Supports to expand critical Colleges and investment mass of universities smart people Provides R&D partners Supports critical Provides training, mass of smart people technology support to clusters Skilled regional Growth companies talent pool Stages 2, 3, 4 and clusters Supports critical mass of smart people Source: Ed Morrison and I-Open
  • 61. Part 3: Building The Capacity to Collaborate Brainpower Innovation 21 Century Talent Entrepreneurship Networks Civic Collaboration Quality, Connected Branding Places Experiences
  • 62. Part 3: Building The Capacity to Collaborate Brainpower Innovation 21 Century Talent Entrepreneurship Networks Civic Collaboration Quality, Connected Branding Places Experiences
  • 63. The Realities We Face
  • 64. The Realities We Face ➡ Command and Control will not work ➡ No one can tell anyone else what to do ➡ We are stuck in old thinking...To transform, we will need new thinking...
  • 65. Workforce development takes place in a civic space outside the four walls of any one organization
  • 66. Workforce development takes place in a complex system Here's what economic and workforce development in Charleston, SC looks like Benchmark Environmental Collaborative Groups Marine Sciences Business Investors MUSC COG Chamber Think Chamber Tec World $ Defense Trade Industries Center County Chamber Alliance State Partnership Legislators Digital $ Port County Corridor $ Low Country Graduate Alliance $ County Center Workforce Investment Board Tourism/ CVB Higher Ed County County consortium Low ED ED Country Mfg. Education Foundation County Charleston ED Other Mt. Local and Chamber ED Pleasant N. Activities Base Charleston Closure
  • 67. Workforce development takes place in a complex system Here's what economic and workforce development in Charleston, SC looks like Benchmark Collaborative Environmental Groups Workforce is here Marine Sciences Business Investors MUSC COG Chamber Think Chamber Tec World $ Defense Trade Industries Center County Chamber Alliance State Partnership Legislators Digital $ Port County Corridor $ Low Country Graduate Alliance $ County Center Workforce Investment Board Tourism/ CVB Higher Ed County County consortium Low ED ED Country Mfg. Education Foundation County Charleston ED Other Mt. Local and Chamber ED Pleasant N. Activities Base Charleston Closure
  • 68. When there is no alignment, people get confused
  • 69. A “top-down” leadership group trying to impose a strategy doesn’t work
  • 70. The answer comes in alignment through “link and leverage” strategies
  • 71. We need to start thinking in terms of networks Knowledge Person; Hub Boundary Spanner Information Broker Knowledge Person Knowledge Person; Hub; Influencer Peripheral Person
  • 72. The key to strategy is guiding the conversations People move in the direction of their conversations... Strategic doing guides these conversations Positive Prosperity conversations Index Negative conversations Years Today Source: Ed Morrison
  • 73. Open Source Economic Development requires a new approach to leadership Traditional Leadership Network Leadership Centralized Distributed, Shared Single Leader Many Leaders Command and control Link and leverage Lead from the front and Lead from the front the rear (it depends)
  • 74. And a new set of leadership roles Network Leader Role Responsibilities Conveynor Creates neutral space Connector Links people and assets Civic entrepreneur Sees new opportunity Guide, Mentor Maps a complex process Strategist Reveals larger patterns
  • 75. Civic Deliberation High Low Low High Leadership Direction
  • 76. Civic Deliberation High Apathy Low Low High Leadership Direction
  • 77. Civic Deliberation High Process Paralysis Apathy Low Low High Leadership Direction
  • 78. Civic Deliberation High Process Paralysis Back Room Apathy Politics Low Low High Leadership Direction
  • 79. Civic Deliberation High Open Source Process Economic Paralysis Development Back Room Apathy Politics Low Low High Leadership Direction
  • 80. Well....How do we get there? ‣ Step 1: Create a neutral civic space ‣ Step 2: Establish new habits of “thinking together” ‣ Step 3: Move from “thinking together” to “acting together”
  • 81. Step 1: Create a neutral civic space ✓ Form a core team to launch civic conversations about brainpower ✓ Find a physically neutral space ✓ Establish clear rules of civility
  • 82. Getting started...Civic Forums help you... ‣ Identify networks and map assets ‣ Build civic habits of “thinking together” Civic forums provide a good way to start strategic doing Source: Nead Brand Partners
  • 83. Step 1: Create a neutral civic space ✓ Form a core team with someone with “convening power” ➡ College and university presidents ➡ Community foundations ➡ Health system executives
  • 84. Step 1: Create a neutral civic space ✓ Find a physically neutral space ➡ Colleges and universities ➡ Libraries ➡ Community centers
  • 85. Step 1: Create a neutral civic space ✓ Establish clear rules of civility ➡ Open boundaries ➡ Treat each other with mutual respect ➡ Transparency, sharing
  • 86. Step 2: Establish new habits of thinking together ✓ Map your networks and explore new connections ✓ Guide the conversations about opportunities ✓ Leverage the Internet: Web 2.0
  • 87. Mapping assets helps people see connections
  • 88. Mapping social networks helps people think horizontally
  • 89. Mapping networks can guide our behavior across old boundaries Civic forums help us cross the quot;invisible fencesquot; (that no longer work)
  • 90. Leveraging the Internet keeps people connected...opens the door to others innovatingnetworks.net
  • 91. Step 3: Move to “acting together” ✓ Establish core team with clear roles and responsibilities ✓ Develop a network of partners ✓ Build habits of strategic doing
  • 92. Draw your own circles of engagement
  • 93. Guide conversations to “next steps”
  • 94. Replace strategic planning with “Strategic Doing” We need new habits of thinking together...Strategic doing Our grandfather's economy Our grandchildren's economy
  • 95. Strategic Doing is like paddling a kayak in the ocean Strategic doing is an open process with leadership direction that dynamically aligns
  • 96. Strategic Doing focuses on answering four questions: 1. What could we do together? 2. What should we do together? 3. What will we do together? 4. How will we learn together?
  • 97. Strategic Doing: People move in the direction of their conversations Develop ideas about what we can do together Explore Evaluations Insights Execute and Choose measure Execute Focus what to results do Action Plans Initiatives Align Identify and align resources to specific initiatives
  • 98. Strategic Doing: People move in the direction of their conversations Develop ideas about what we can do together Explore Evaluations Insights Execute and Choose measure Execute Focus what to results do Action Plans Initiatives Align Identify and align resources to specific initiatives
  • 99. Strategic Doing: People move in the direction of their conversations Develop ideas about what we can do together Explore Evaluations Insights Execute and Choose measure Execute Focus what to results do Action Plans Initiatives Align Identify and align resources to specific initiatives
  • 100. Strategic Doing: People move in the direction of their conversations Develop ideas about what we can do together Explore Evaluations Insights Execute and Choose measure Execute Focus what to results do Action Plans Initiatives Align Identify and align resources to specific initiatives
  • 101. Strategic Doing: People move in the direction of their conversations Develop ideas about what we can do together Explore Evaluations Insights Execute and Choose measure Execute Focus what to results do Action Plans Initiatives Align Identify and align resources to specific initiatives
  • 102. We move around the cycle with a Strategic Doing Pack of workshop exercises Develop ideas about what we can do together Explore Evaluations Insights Execute and Choose measure Execute Focus what to results do Action Plans Initiatives Align Identify and align resources to specific initiatives 76
  • 103. We move around the cycle with a Strategic Doing Pack of workshop exercises Develop ideas about Exercise 4 what we can do Exercise 1 together Explore Evaluations Insights Execute and Choose measure Execute Focus what to results do Action Plans Initiatives Align Identify and align resources to Exercise 3 specific initiatives Exercise 2 76
  • 104. Strategic Doing is not an event... it’s a disciplined process Regions are moving toward civic processes that focus on Strategic Doing Strategic Strategic Strategic Strategic Doing Doing Doing Doing Forum Forum Forum Forum working groups 30-90 days Source: Ed Morrison
  • 105. Civic Network Strategies Conduct Quarterly WIRED Forums around the region ‣ Note: Our Clean Energy Forum and our regional leadership initiative emerged from these regional forums Engage Civic Leaders on a Regional Innovation Mission ✓Example: National Renewable Energy Lab visits
  • 106. Civic Network Strategies Develop a Structure for an On-Going Regional Civic Network ✓ Civic Entrepreneur Leadership Institute (developed by IUK) ✓ Use new social network analysis tools
  • 107. Cetys Workshop November 4, 2008 Cetys Open Strategic Doing Pack Ed Morrison Purdue Center for Regional Development
  • 108. The Strategic Doing cycle Develop ideas about what we can do together Explore Evaluations Insights Execute and Choose measure Execute Focus what to results do Action Plans Initiatives Align Identify and align resources to specific initiatives 81
  • 109. The Strategic Doing cycle Develop ideas about Exercise 1 what we can do together Explore Exercise 2 Evaluations Insights Execute and Choose measure Execute Focus what to results do Action Plans Initiatives Align Exercise 4 Identify and align Exercise 3 resources to specific initiatives 81
  • 110. Workshop Exercise 1: Map Assets: Explore Strategic Training Assets Describe assets that you have to meet the training needs of employees and employers in the short term 1 2 3 4 5 82
  • 111. Workshop Exercise 2: Explore Strategic Collaborations Strategic Outcome Describe at least three strategic partners for us as an “innovation network” that can collaborate to accomplish this Describe the outcome in three years outcome With our help, we envision we will .... 1 2 3 4 5 83
  • 112. Strategic Outcomes Strategic Outcomes describe a desired state in the future. Descriptions of the desired state should include the idea of stretch, measurable goals. What will REN look like, feel like in 3 years? What will people be doing? How will people be connecting? How will REN help transform Indiana? “A learning community” is not as good a strategic outcome as “community that accelerates innovation in rural communities across regions.” Strategic Strategic Collaboration describes the type of Collaborations partnerships we need to achieve our Strategic Outcomes. More specific descriptions will provide clarity to “who should be at the table”. 84
  • 113. The Strategic Doing cycle Develop ideas about what we can do Exercise 1 together Explore Evaluations Insights Execute and Choose measure Execute Focus what to results do Action Plans Initiatives Exercise 3 Align Identify and align resources to Exercise 2 specific initiatives 85
  • 114. Workshop Exercise 2: Focus REN SMART Goals Strategic Initiatives for REN How should we measure our progress? How will we know we will be successful? To achieve our strategic outcomes, we will 1 (do what?)... 2 3 4 5 86
  • 115. Strategic Activities and Strategic Outcomes are just words until we Initiatives describe what we will actually do to achieve our outcomes. Strategic activities and initiatives (or projects) describe what we will do together. We still need to be more specific though. We need to mark the path forward with some SMART goals -- or road markers. SMART Goals SMART Goals are simple, measurable, aggressive, relevant and time sensitive. They are milestones to mark our path. So a SMART Goal might be: By 2010, we will expand our on-line professional support to XXX members. In this exercise, focus on what we need to measure to keep us focused on our path ahead. 87
  • 116. The Strategic Doing cycle Develop ideas about what we can do Exercise 1 together Explore Evaluations Insights Execute and Choose measure Execute Focus what to results do Action Plans Initiatives Exercise 3 Align Identify and align resources to Exercise 2 specific initiatives 88
  • 117. Workshop Exercise 3: Align Our Strategic Outcome: Time frame What Who In the next 6 months In the next 3 months In the next 30 days Next week 89
  • 118. Thank you! To learn more: Purdue Center for Regional Development http://pcrd.purdue.edu I-Open http://i-open.org