The document discusses the transition from an outdated economic model to a new economy, referred to as 'grandchildren's economy,' emphasizing the need for innovative strategies like 'strategic doing' to foster collaboration and 'swarm innovation.' It outlines key components for mapping regional economic strategies, including identifying anchor organizations, strategic outcomes, and initiatives while addressing gaps in current economic development practices. The text stresses the importance of leaders willing to adapt and create action-oriented networks to navigate this economic transformation.

1. Strategic Doing Ed Morrison Purdue University University of Oklahoma Economic Development Institute Advanced Strategy Lab | Indianapolis 2010

2. We are moving from our Grandfather’s to our Grandchildren’s Economy Our economic transformation requires new approaches to strategy Strategic Doing provides the discipline to to generate “swarm innovation” Here’s Strategic Doing in a Nutshell

3. We are moving from our Grandfather’s to our Grandchildren’s Economy Our economic transformation requires new approaches to strategy Strategic Doing provides the discipline to to generate “swarm innovation” Here’s Strategic Doing in a Nutshell

5. Here’s how our Grandfather’s created wealth

6. Here’s how our Grandfather’s created wealth Coal dumper video available on YouTube

7. Here’s what happened to our Grandfather’s economy Global markets integrated Costs collapsed The Internet exploded

8. Name a company in your region that has been caught in the downdraft of our Grandfather’s economy. What do you know about its strategy? How could you use these insights in your business retention program? Questions:

9. Here’s how wealth will be created in our Grandchildren’s economy

10. Here’s how wealth will be created in our Grandchildren’s economy Cisco video available on YouTube

11. The iPhone production network Our Grandchildren’s economy is emerging... Who makes the iPhone? A network led by Apple

12. We are in the midst of a deep transformation

13. Grandfather’s Economy Grandchildren’s Economy Hierarchies Networks Command and control Link and leverage Vertically integrate Horizontally connect Transactions Relationships Mass Production Sustainable Manufacturing Strategic Planning Strategic Doing

14. Questions: Name a company in your region that is catching the wave of our Grandchildren’s economy. What do you know about its strategy? How could you use these insights in your business retention program? What would features of a strategy would you look for?

15. Our challenge is to find the pathways to our Grandchildren’s economy... Connecting our many assets with “link and leverage” strategies

16. In our Grandchildren’s economy, we will need to find ways to align 5 types of networks

17. The 5 factor model of regional economic development Ed Morrison, Purdue Center for Regional Development

18. Tom Peters: “It’s the firm” Michael Porter: “It’s the cluster” New urbanists: “It’s the place” Richard Florida: “It’s the Creative Class”

19. Questions: What are the current components of your ED strategy and how would you map them? How would you map your current levels of investment? Do you gain any insights from mapping your strategy? What patterns do you see? What gaps and disconnects?

20. Mapping a Regional Strategy using the 5 Factor Model You can use the Five Factor model to map your current economic development strategy. By mapping your region’s strategy, you can get a good overview of how well your strategy is balanced, focused and connected. The key components of a strategy map include: Anchor Organizations.-- Which organizations anchor the networks in your strategy? Strategic Outcomes.-- Where are you going with your strategy? For example, does your region have a set of clearly articulated outcomes in developing Brainpower? Strategic Initiatives.-- For each outcome, what are the major initiatives that your anchor organizations guide? What are you doing to achieve your outcomes? Strategic Investment.-- What is the approximate level of investment in each of the areas? You can estimate this in a variety of ways, but it is helpful to focus only on the investments that you can guide through your strategy. It’s also helpful to distinquish between operating expenses and capital expenditures. The 5 Factor Model is inclusive. Any organization or individual concerned with education, workforce or economic development is located somewhere on the map. So, for example, educators, workforce developers and anyone concerned with individual development are in the Brainpower quadrant. Economic developers, incubator managers, and professionals concerned with business development are in the Innovation and Entrepreneurship quadrant. Professionals concerned with physical development -- infrastructure, broadband, industrial parks -- are in the Quality, Connected Places quadrant. Marketing and tourism professionals are located in the Branding Stories quadrant. Leadership programs are located in the middle, under Civic Collaboration. Typically, you will find that the region has rarely articulated clear Strategic Outcomes that align organizations; that organizations are pursuing many disconnected initiatives that fail to link and leverage assets either within or across quadrants; that branding stories are narrow and confused; and that very little (if any) investment is being made to build the networks needed to develop, guide and revise a regional strategy.

21. Mapping a Strategy ANCHOR ORGANIZATIONS STRATEGIC OUTCOMES (Where are you going?) STRATEGIC INITIATIVES (How will you get there?) APPROXIMATE ANNUAL INVESTMENT Brainpower Networks Innovation and Entrepreneurship Networks Quality, Connected Place Networks Branding, Story-Telling, Identity Networks Collaboration, Leadership Networks

22. Here’s an example of how institutions from our Grandfather’s economy are not adjusting well...High school drop-outs are a major problem across the U.S. Dade Orlando Hillsborough Florida U.S.

23. Nearly 104,000 students did not graduate from Florida’s high schools in 2009; the lost lifetime earnings in Florida for that class of dropouts alone total more than $27 billion. Florida would save more than $1.5 billion in health care costs over the lifetimes of each class of dropouts had they earned their diplomas. If Florida’s high schools graduated all of their students ready for college, the state would save almost $193.8 million a year in community college remediation costs and lost earnings.

24. We can start here: Our ideas about career paths are too simple...

25. We need transformation and innovation... 50% to 60% of teenagers are here... 70% to 80% of the jobs are here...

26. We are moving from our Grandfather’s to our Grandchildren’s Economy Our economic transformation requires new approaches to strategy Strategic Doing provides the discipline to to generate “swarm innovation” Here’s Strategic Doing in a Nutshell

27. Strategic Planning evolved to handle large hierarchical organizations A small group at the top did the thinking A larger group at the bottom did the doing

28. Strategic planning doesn’t work because networks have no tops or bottoms

29. Our strategy challenge is like paddling a kayak in the ocean The task requires quick strategic assessments and continuous “doing”

30. We are moving from our Grandfather’s to our Grandchildren’s Economy Our economic transformation requires new approaches to strategy Strategic Doing provides the discipline to to generate “swarm innovation” Here’s Strategic Doing in a Nutshell

31. Strategic Doing guides a loosely connected network with a series of disciplined conversations

32. Strategic Doing keeps us focused on the big issues Nextel video available on YouTube

33. Strategic Doing guides conversations...The key insight: People move in the directions of their conversations

34. We guide these conversations with workshop exercises....Strategic Doing Packs

35. Strategic Doing produces alignments, links and leverage

36. Str Most Strategic Doing Plan and action together Strategic Planning Plan but no action No Strategy Action but no plan

37. As we guide these conversations and make decisions, we generate all the components of a Strategic Action Plan...It is simple, but not easy. Strategic Action Plan v. 0.1 beta

38. Strategic Doing begins when a Core Team of leaders takes responsibility for the Strategic Doing process... The Core Group agrees to use a Strategic Doing process to produce and update a Strategic Action Plan

39. The Core Team identifies focus areas of opportunities to produce dramatically better results....

40. Within each focus area, teams start with initiatives or projects Projects need to be: Replicable Scalable Sustainable

41. 30 Days The process of shaping a strategy is continuous

42. With Strategic Doing, there’s no separation between thinking and doing..the strategic conversations (driven by the four questions) are continuous

43. [email_address] Peggy Hosea

44. Strategic Doing generates Swarm Innovation...Many innovations that link and leverage a region’s assets Disruptive Innovation Swarm Innovation

45. At Purdue, we have used Strategic Doing to generate over 50 initiatives (each with metrics) in four focus areas...with one administrator Core Group Focus 1 Focus 2 Focus 3 Focus 4 Initiatives Initiatives

46. © 2008, Brian D. Thompson, UWM Research Foundation 10/6/08 Funding Agencies Academic Institutions Private Sector Public Sector Water, Water, Water, … Opportunities Funds Fluid Transport/ Civil & Ind. Engr. Detection Materials Bioscience Pumps/ Valves/ Components Analysis/ Measuring/ Control Water User Consumer Products Treatment/ Processing/ Softening Utilities DOE EPA NSF USDA DoD NOAA/DOC Interior World Bank Foundations International Partners NIH Greater Milwaukee Foundation UWM Marquette UW-Madison WATER Inst. Chem & Biosci School of Freshwater Science CEAS Physics MSOE Fluid Power Rapid Proto Center M7/GMC MMSD City of Milwaukee DNR UNDP Federal Government Municipalities Water Council Pentair Filtering & purification GE Badger Meter Water meters Meter reading systems Procorp Water reuse & softening Phosphate & radium removal AO Smith Water heaters Kohler Faucets Materials, coatings, plating Casting technology Miller Coors Intake quality, output quality Energy consumption AquaSensors Thermo Fisher Scientific Fall River Great Lakes Water Water treatment equipment Advanced Chemical Systems Ind. wastewater treatment CH2MHILL Engineering services ITT Sanitarie Wastewater treatment design Flygt pumps Siemens Joy Bucyrus Veolia Water utilities Environmental Algae control (& exploitation) Removal of PCBs from lakes & rivers Storm water containment, Road salt Ship’s ballast – policy/enforcement Aquaculture Lake Michigan contamination Policy issues – metering/incentives Energy/Efficiency Ethanol production efficiency Tar sands water treatment Elimination of boiler scaling Increasing brewing efficiency Increased efficiency of water heating Speeding treatment for large volumes Increasing treatment efficiency Processing/Treatment Municipal wastewater treatment Storm water treatment Reduced use of chemicals Industrial wastewater treatment Farm manure, food processing waste, metals Utilizing sewer sludge Residential Water Treatment Residential water treatment, home filtration Residential Water softening without salt Reverse Osmosis Softening Ships ballast - treatment Treatment targets PCBs in sewer pieps Desalinzation Radium in ground water Pharmaceuticals Phosphate Monitoring/Detection Water security Real time monitoring User detection systems Real time sensing for life forms Pharmaceuticals

47. © 2008, Brian D. Thompson, UWM Research Foundation 10/6/08 Funding Agencies Academic Institutions Private Sector Public Sector Water, Water, Water, … Opportunities Funds Fluid Transport/ Civil & Ind. Engr. Detection Materials Bioscience Pumps/ Valves/ Components Analysis/ Measuring/ Control Water User Consumer Products Treatment/ Processing/ Softening Utilities DOE EPA NSF USDA DoD NOAA/DOC Interior World Bank Foundations International Partners NIH Greater Milwaukee Foundation UWM Marquette UW-Madison WATER Inst. Chem & Biosci School of Freshwater Science CEAS Physics MSOE Fluid Power Rapid Proto Center M7/GMC MMSD City of Milwaukee DNR UNDP Federal Government Municipalities Water Council Pentair Filtering & purification GE Badger Meter Water meters Meter reading systems Procorp Water reuse & softening Phosphate & radium removal AO Smith Water heaters Kohler Faucets Materials, coatings, plating Casting technology Miller Coors Intake quality, output quality Energy consumption AquaSensors Thermo Fisher Scientific Fall River Great Lakes Water Water treatment equipment Advanced Chemical Systems Ind. wastewater treatment CH2MHILL Engineering services ITT Sanitarie Wastewater treatment design Flygt pumps Siemens Joy Bucyrus Veolia Water utilities Environmental Algae control (& exploitation) Removal of PCBs from lakes & rivers Storm water containment, Road salt Ship’s ballast – policy/enforcement Aquaculture Lake Michigan contamination Policy issues – metering/incentives Energy/Efficiency Ethanol production efficiency Tar sands water treatment Elimination of boiler scaling Increasing brewing efficiency Increased efficiency of water heating Speeding treatment for large volumes Increasing treatment efficiency Processing/Treatment Municipal wastewater treatment Storm water treatment Reduced use of chemicals Industrial wastewater treatment Farm manure, food processing waste, metals Utilizing sewer sludge Residential Water Treatment Residential water treatment, home filtration Residential Water softening without salt Reverse Osmosis Softening Ships ballast - treatment Treatment targets PCBs in sewer pieps Desalinzation Radium in ground water Pharmaceuticals Phosphate Monitoring/Detection Water security Real time monitoring User detection systems Real time sensing for life forms Pharmaceuticals Joe Aldstadt – analytical methods Peter Geissinger – detection Alan Schwabacher– pharmaceuticals in water Carmen Aguilar – microbiology David Petering –metal metabolism Val Klump Rohatgi, Pradeep – adv. castings, lightweight, lead-free Aita, Carolyn – advanced coatings Gong, Sarah – polymer materials Chen, Junhong – nano materials, sensors Li, Jin – pollutant transport modeling Bravo, Hector – hydraulic modeling Christensen, Erik – pollutants in water Amano, Ryoichi - CFD Pillia, Krisna – porous media modeling Kevin Renken- mass transfer Sobolvev – biproducts utilization Doug Cherkauer – groundwater hydrology Jim Waples – water aging Tom Consi – aquatic robots Tom Grundle - harbors Tim Ehlinger – aquatic systems Burlage – PCR environmental test Shangping Xu – safe drinking water Partnerships Sponsored Research Proj. Shared equipment Graduates Workforce training Subcontractor/supplier Extramural grant support Philanthropic support Cluster Effects Shared resources/equipment Collaborative grants Improved competitiveness Translational science

48. As we connect assets, something funny happens...Our opportunities actually expand

49. People who use Strategic Doing do not waste time asking permission... Kokomo, IN

50. These folks are working on re-engagement networks for laid-off engineers and manufacturing workers...

51. Here’s an example of an initiative that’s part of “swarm innovation”

52. Here’s an example of an initiative that’s part of “swarm innovation” Purdue guitar video available on Vimeo

53. Cape Girardeau, MO Southeast Missouri used Strategic Doing to shape a strategy for its P-20 Council

54. Denver, CO Colorado used Strategic Doing to explore new connections in its workforce system

55. Michigan used Strategic Doing to explore avenues past the declining auto economy Lansing, MI

56. Boise, ID Idaho used Strategic Doing in their Governor’s Workforce Development Summit

57. If your actions inspire others to dream more, learn more, do more and become more, you are a leader. John Quincy Adams We need leaders willing to step up...now

59. Where we are: In a major economic transformation Where we are heading: To our Grandchildren’s economy and a world of open networks How we will get there: Building action-oriented networks with Strategic Doing What you can do: Choose to lead

60. Where we are: In a major economic transformation Where we are heading: To our Grandchildren’s economy and a world of open networks How we will get there: Building action-oriented networks with Strategic Doing What you can do: Choose to lead

61. Where we are: In a major economic transformation Where we are heading: To our Grandchildren’s economy and a world of open networks How we will get there: Building action-oriented networks with Strategic Doing What you can do: Choose to lead

62. Strategic Doing Pack Describe your focus area for conversation: What brings you together? Strategic Doing Pack Completed By: Today’s Date: Team Members Name Organization e-mail

63. Strategic Doing Question 1: What could we do together? Map your asserts...Connect them to define new opportunities What assets do we have in our networks? People? Organizations? Resources? Experience? What opportunities emerge when we connect these assets in new and different ways? Guide the conversation toward connections...What opportunities emerge that connect and align our assets? List as many as five opportunities that emerge from your conversation Opportunity 1 Opportunity 2 Opportunity 3 Opportunity 4 Opportunity 5

64. Strategic Doing Question 2: What should we do together? Define an outcome with 3 characteristics...Define metrics to measure the characteristics... Define a clear outcome that connects your team What do you hope to accomplish? What’s the Big Hairy Audacious Goal (BHAG) What’s your “elevator speech” to get people excited? Strategic Doing Question 2: What should we do together? Define how you will get to your outcome Decide on a project with 3 SMART Goals Simple Measurable Aggressive Relevant Time sensitive Characteristics that define your Outcome What are the characteristics or features of your outcome? How do you describe it clearly? Metrics to measure your success How would you measure each characteristic? Characteristic 1 Metric 1 Characteristic 2 Metric 2 Characteristic 3 Metric 3 Define the project What are you going to do to achieve your outcome? Define the project pathway with SMART Goals SMART Gaol 1: By ____________________, we will ____________________________________________________________ SMART Gaol 2: By ____________________, we will ____________________________________________________________ SMART Gaol 3: By ____________________, we will ____________________________________________________________

65. Strategic Doing Question 3: What will we do together? Draft an action plan Strategic Doing Question 4: How will we learn together? Decide how you will follow -up Who Action Step By When Follow-up Meeting Date Time Place Internet Details How will you use the Internet to stay connected?

66. This Strategic Doing short form helps you keep focused on the strategic conversation. Remember, your strategic conversation is framed by four questions. If your conversation drifts from these four questions, you can bring it back on track by asking one of the questions. Completing the short form gives you the main components of your Strategic Action Plan. You should add a version number, because a good Strategic Action Plan needs to be revised early and often.

68. Thank you! Ed Morrison [email_address] Purdue Center for Regional Development www.purdue.edu/pcrd