This document outlines an agile strategy called "Strategic Doing" for diversifying the economy of Valdez, Alaska. It discusses increasing the flow of money in the local economy through good money from exports and tourism, neutral money from business-to-business transactions, and reducing bad money spent on outside purchases. The strategy focuses on collaboration over planning through connecting local assets, building trust networks, and pursuing small, measurable goals through ongoing action and learning.

1. Creating an Agile Strategy
for Diversifying the Valdez Economy
Scott Hutcheson, Ph.D.
February 2015 - Valdez, Alaska

5. Seeing the Unseeable

6. Seeing the Unseeable

8. 1) Good Money – Increase the
amount of money coming into
the community.
2) Neutral Money – Increase the
velocity of money circulated in
the region among local
businesses
3) Bad Money – Reduce income
leaving the community via
outside purchases
Good money increases when
products are exported and when
outsiders visit and spend.
Bad money is reduced when
locals invest more at home.
Neutral money speeds up
with business to business
trade.
The Valdez Economy:
Three Flows of Money
Adapted from the work of Ed Morrison & David Morganthaler

12. Strategy
Strategy = the employment of battles to win the war.
- General Carl von Clausewitz

13. I will build a motor
car for the great
multitude. It will be
so low in price that
no man will be
unable to own one.
- Henry Ford

14. Source: Bently Historical Library, Josephine Fellows Gomon Papers, Box 10,
draft manuscript, The Poor Mr. Ford.
In 1928 Henry Ford’s River Rouge
Plant in Dearborn, Michigan
became the world's largest
industrial complex, pursuing vertical
integration to such an extent that it
could produce its own steel. In this
year he also established
“Fordlandia” his rubber tree
plantation in the Amazon Rainforest
The Ford Motor Company

15. The world has changed
a lot since we first
started using strategies
to chart our course

16. Metro-Goldwyn-Mayer
71 cast and crew
members all working
for MGM

17. 17

18. 18

19. What do the military and vertical business
models have in common?
19

20. What do the military and vertical business
models have in common?
20

21. Metro-Goldwyn-Mayer

22. Metro-Goldwyn-Mayer

23. Metro-Goldwyn-Mayer

24. Metro-Goldwyn-Mayer
Cast and crew of
2,000+, hardly any
working for MGM

25. iPhone

28. Strategic
planning often
spoils strategic
thinking.
- Henry Mintzberg

29. 29

31. Strategic Doing enables people to
form action-oriented collaborations
quickly, move them toward
measurable outcomes, and make
adjustments along the way.

32. Thinking, Behaving, & Doing
in New Ways

33. Thinking in New Ways

34. Strategic
Doing
Leverages the
Value of a
Network
10 nodes, 9 connections
10 nodes, 45 connections

35. Grandfather Grandchildren

36. There is no top or bottom in a network

37. Networks move us to new
opportunities

38. Networks move us to new
opportunities

39. http://www.slideshare.net/linkedin/mandel-linked-in-connections-reportnov-2014
The “most-
connected”
communities had
more than double
the job growth of
the “least-
connected”
communities.

40. We Create Networks by Connecting Assets
Kretzmann, J. & McKnight, J. (1999).
Building Communities from the Inside
Out: A Path Toward Finding and Mobilizing
A Community’s Assets.

41. We Create Networks by Connecting Assets

42. We Create Networks by Connecting Assets

43. We Create Networks by Connecting Assets

44. Strategic Doing Recognizes That We Can’t
Predict the Future
Dr. Lowell Catlett
Economist, Futurist, and Professor
New Mexico State University

45. Strategic Doing Recognizes That We Can’t
Predict the Future
One study looked at 7,000 different economic
predictions and found 47% of them was correct.

46. Strategic Doing Recognizes That We Can’t
Predict the Future
Flip a coin and you beat the economists by 3%.

47. Behaving in New Ways

48. Strategic Doing Accelerates Collaboration
Turf
Trust
TIME
Sharing
Resources
Sharing
Information
Mutual
Awareness
Co-Execution
Co-Creation
Acknowledgment Exploration Cooperation Collaboration Innovation
Adapted from Collaboration Continuum from ACT for Youth

49. Building trust takes doing

50. Trust powers innovation

51. Innovating networks produce
increasing returns
Mathematics says the sum value of a
network increases as the square of the
number of members. In other words, as
the number of nodes in a network
increases arithmetically, the value of the
network increases exponentially. Adding a
few more members can dramatically
increase the value for all members.
- Kelly, K. (1999). New Rules for the New
Economy

52. Prosperity is not “winner take all”
Source: Clipart by C Charley-Franzwa -
http://clipartof.com/50191

53. Doing in New Ways

54. Strategic Planning Strategic Doing
Strategic Doing is a strategy
protocol built for networks

55. Alignments emerge

56. Strategy
answers two
questions.

58. A 30/30 commitment drives
learning

59. Strategic Doing Focuses on Small Wins to
Achieve Big Goals
Doubt and dwindling
motivation comes on
quickly when a big
goal is missed. On
the other hand, small
wins lead to the
progress principle -
more confidence,
high performance,
and motivation to
keep moving
forward.
- Teresa Amabile

60. Strategic Doing is
Simple but not easy.
It’s the simplicity on
The other side of
The complexity.

61. Strategic Doing
began in Oklahoma
City in1993

62. Oklahoma City Toda
Photo by: Luke Barrett

64. Kokomo, Indiana

65. Kokomo, Indiana

66. Workforce Innovations in
Regional Economic Development
- Designed & guided 60+ collaborations
- Over 100 partner organizations
- Tracked over 200 metrics
- Hired 2.5 people to manage it all
- 80% of initiatives sustained

71. Kokomo, Indiana
2008 = One of the Fastest Dying US Cities
2014 = One of the Fastest Growing US Cities

75. The key to these successes was th
Rather than focusing on investing in
right projects, we focused on
investing in the right collaboration
Is it…
scalable,
replicable,
sustainable?

76. Strategy becomes a collective habit of ongoing
conversation coupled with action, rather than an
event or a document

77. Practicing Strategic Doing
77

78. • Local & Regional Economic Development
• Workforce Development
• Community & Neighborhood Development
• Cluster Development
• Local/Regional Food Systems
• Community Health
• Innovation Ecosystem Development
• Strategic Alliances
• Inter-Unit Organizational Collaboration
• National Associations
Practicing
Strategic
Doing

79. Strategic Doing in the “Literature”
Hutcheson, S. (2014). Effective Strategy in
Local & Regional Development.
Hutcheson, S. (2914). Effective Strategy Making
In Economic & Community Development.
Morrison E, & Hutcheson, S. (2014). Acceleratin
Civic Innovation with “Strategic Doing.”

80. Purdue’s partners in Strategic Doing

84. To know what you’re
going to draw, you
have to begin drawing.
- Pablo Picasso

85. To learn more and to connect
Scott Hutcheson, Ph.D.
Purdue University
hutcheson@purdue.edu
www.pcrd.purdue.edu
www.strategicdoing.net
www.facebook.com/stratdoing
www.slideshare.net/jshutch
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