Greater Egypt Regional COI

1
CONNECT SI
Greater Egypt Regional COI Milestone Meeting 1
Building a Collaborative Regional Economic
Strategy Enabled By Broadband Connectivity Leadin
g With Healthcare
Frank Knott, President ViTAL Economy,
Inc. Fknottmd_at_earthlink.net
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Agenda - CED COI Milestone 1 Meeting
0.00 - Welcome Introductions of
Participants 015 - Overview of Connect SI
Initiative Regional ImplementationSlides
3-12 100 - Setting and Attaining Measurable
Goals..Slides 13-18 130 - Break 145 -
Understanding the VE Approach to Transforming an
Economy..Slides 20-35 230 - Creating a
Sub-Regional Framework for Action Next
StepsSlides 36-44 300 -Adjourn Milestone Meeting
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Population423,670 Workforce195,429
4

Connect SI Strategic Goals

• Create a broadband enabled 20-county economic
  strategy
• Build network provider, CED and health COIs for
  regional economy
• Communicate enabling economic role of
  connectivity to region
• Benchmark impact of healthcare on regional
  economy
• Develop connectivity business case for at least
  3 Tele-health apps
• Create GIS broadband demand aggregation map and
  peering solution
• Build strategies to improve employee retention
  raise wages in SI
• Establish long-term regional framework to
  sustain initiative
• Implement a successful collaborative funding
  strategy

5
Regional Economies Require Connectivity to
Become Integrated Marketplaces
6
Why Collaboration is CriticalNeighbors Are No
Longer The Competition

• Rural economies are competing against country
  strategies
• Provides rural economic regions with the critical
  mass necessary to compete with country strategies
  and mobilize emerging clusters of opportunity
• Builds connections within and between regions - -
  making remoteness an asset
• Provides a more cost effective way to allocate
  resources and make critical decisions
• Aggregates demand to increase access to utility,
  transport and knowledge infrastructures expanding
  opportunity across the region
• Creates critical mass of knowledge assets to
  promote and nurture the development of climates
  of innovation that grow Knowledge Based
  Enterprises (KBE), which are replacing the
  historic commodity-resource based industries of
  growth
• Builds a regional vision that enables a
  rationalization and alignment of sub-regional
  regulatory and tax policies that creates an
  attractive and the effective economy for workers
  and work to compete with unified country
  strategies

7
What Are Examples of Successful Regional
Collaborations?

• Successful regional collaborations
• St. Marys Good Samaritan Hospital
• Shawnee Hill Wine Trail
• Asin/ REDCO/Johnson City
• American Trap Shooting Event. St. Clair,
  Randolph, Perry
• Legislative voting block

8
What Are Examples of Failed Regional
Collaborations?

• Failed regional collaborations
• DeCoin, Pinkneyville Hospital
• SII, Super Chamber of Commerce

9
Connect SI Strategic Engagements
20-County Economic and Community Development
Leadership Engagement
Health Services Community of Interest (COI)
Engagement
Connectivity Provider Community of Interest (COI)
Engagement
Enabled by Collaborative Regional Leadership and
Connectivity Frameworks
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CONNECT SI Draft Rollout Plan Overview
Getting Started and Organized Feb 2006 -----gt
May 2006 Phase 1 Investor Recruitment Feb 2006
--------------------------------------------------
gt Jun 2007 Phase 1 COI Recruitment Feb 2006
------------------------gt Dec 2006 GIS
Initiative Mar 2006
---------------------------------------------gt
Jun 2007 Healthcare COI
Jul 2006 ------gt Mar 2007 Connectivity
Provider COI Jun 2006 -----------------gt Apr
2007 CED COI - Five Milestone Mtgs - Greater
Egypt Region Jun 2006 -----------------gt Apr
2007 - Southeastern Region Jul
2006 -----------------gt May 2007 - Southern Five
Region Sep 2006 -----------gt Jun
2007 -Greater Wabash Region Oct
2006---------gtJul 2007 COI Input to Regional
Strategy Mar 2006 --------------------------
-------------------------gt Aug 2007 Build SI
Regional Strategy Jun
2006------------------------------gt Aug
2007 Phase 2 Implementation Plan Approved
--------------------------------------------------
------------gt Sep 2007
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Community and Economic Development COIGreater
Egypt
1 - VE Vision Workshop, Goal Setting, Jun -
Aug 2006 Issues of Challenge and Opportunity
2 - Develop and Implement Regional
Sep - Nov 2006 Asset Mapping Process 3
- Connected Economy Opportunity Analysis
Dec 2006 - Jan 2007 Leverage Regions
Unique Assets 4 - Economic Opportunity
Industry Sector Feb - Mar 2007
Prioritization Diversification Issues
5- Benchmark Current Economy, Understand
Apr 2007 Future Economy, Establish Regl
Economic Priorities
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ViTAL Economy Recommended Funding Model
Collaborative Investment Builds Regional
Ownership of Strategy Healthcare Providers
Invest 2006/07 _at_ 100,000/Year 200,000
over 2 years Connectivity Providers Invest
2006/07 _at_ 100,000/year 200,000 over 2
years Regl Communities invest 2006/07 _at_
100,000/Year 200,000 over 2
years Corporations/Foundations invest 2006/07
_at_ 100,000/Year 200,000 over 2
years State/Federal Governments invest 2006/2007
_at_ 100,000/Year 200,000 over 2 years
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Beginning the Process of Setting Measurable Goals
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Transforming A Regional Economy by Setting
Measurable Goals Starts With Understanding What
We Want to Become!

• Western New York - Live Where You Want, Work
  Where you Live!
• Rural North Carolina - Rural Internet Access
  Authority transforms rural regions
• New Brunswick - Make remoteness an asset for
  750,000 citizens in the global economy
• Nova Scotia - Networks transform fishing villages
  into e-learning e-business engines
• Tasmania - Resource economy becomes global
  virtual marketplace
• Southwest Virginia - 13 counties become a
  virtual networked economy
• Coachella Valley - Nine communities transform
  desert into a smart economy asset
• Rural Maryland - Networks transform 17 rural
  counties into growth engines
• Olympic Peninsula - Connectivity enables
  reversal of 30 year economic down trend

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Attaining Outcomes, Requires Setting Measurable
Goals at the Regional and Sub-Regional Levels

• Improvement in healthcare access, outcomes,
  revenue and jobs
• Private sector led plan for universal access to
  broadband services
• Measurable goal for raising x of low wage jobs
  by x per year
• Increase regional average wage from 65 to 75
  of state average wage
• Measurable goals for lowering unemployment rates
  in each county
• Establish minimum average wage goal for new jobs
  to be created
• Workforce development goals that increase labor
  participation rate
• Phase 2 plan for industry sector growth and
  economic diversification
• Benchmark of regional gross state product and 5
  year growth goal

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What Measurable Goals Are Important To You and
Why?

• Your ideas
• Age demographic within population segments, 25-44
  benchmark, growth/goal
• Venture capital attraction, benchmark with future
  goal
• Benchmark equity investment in region
• Entrepreneur/small business startup rate
• Angels investment
• Average covered wage
• College education/degree attainment levels in
  population
• Average age within industry categories
• Youth retention factor, by education attainment

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ViTAL Economys Essential Guiding Principle If
You Cannot Measure It, You Cannot Manage It!

• Vision and/or Mission Must Be Achievable,
  Believable and Transforming
• Benchmarks For Where We Are Today Must Be
  Established
• Measurement of Accomplishments Between Benchmark
  and Vision Is Critical
• Goals Must Enable The Realization of the Mission
  and Be Measurable
• Strategies Enable Measurable Accomplishment of a
  Specific Goal
• Action Plans Are Measurable Implementations of a
  Strategy
• All Actions Are Measured and Related Back to the
  Intended Goal, Strategy and Vision

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Connect SI Potential Outcomes, VE Sees As
Possible,If Measurable Goals are Set and Acted
Upon

• Connect SI Possible Five-Year Measurable Outcome
  Goals
• Create 10,000 new jobs paying 43,500/year plus
  health benefits435 million/year
• Raise average wage by 3,400/year for regions
  workforce571.6 million/year
• Reduce region poverty rate to state average of
  10.7 from 16.4 affects 22,000
• Reverse health service revenue migration to
  increase revenues by 100 million/year
• Reduce regions real unemployment rate to state
  average6.1
• Increase broadband penetration rates by 50 to
  finance ubiquitous broadband access

• Projected Five-Year Measurable Outcome Goals
  versus ViTAL Economy Client History
• Job creation goal is 40 of average client
  experience for comparable employment base
• Average wage goal is 52 of average client
  community experience
• Annual wage creation is 42 of average client
  community experience
• Healthcare revenue creation goals are 20 of
  average client community experience
• Unemployment rate goal is 50 of average client
  community experience

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Break
20
ViTAL Economy Process
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Linking Connectivity and Economic Growth
ViTAL Economy Approach Components
Connectivity Enabled Strategy
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Challenges that Define Realities for Regional
Economies

• Global competition in a 24x7 world is
  intensifying.
• Neighbors next door are no longer our competition
• Perception that current economic pie of
  opportunity is limited not expansive
• Knowledge is driving growth even in traditional
  resource sectors
• To compete businesses must become continuous
  innovators.
• Innovative businesses learn to specialize.
• Creation of fertile climates of innovation is
  key.
• Need for sufficient critical mass to compete
  requires collaboration of business sectors,
  governments and community resources

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The Integrated Marketplace Is The Only Sensible
Response
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The World is Flat-10 FlattenersWhy We Must
Change the Way We Organize to Succeed

• Berlin Wall Comes Down November 1989
• When Netscape Went Public, August 1995 from PC to
  Internet Based Platform
• Workflow software enables a global supply chain
• Open Sourcing-Shareware
• Outsourcing-Y2K-Using telecom to contract to
  another firm in another country
• Off Shoring - Moving a U.S. factory to another
  country
• Supply Chaining - Connected throughout the chain
  without owner control
• In Sourcing - UPS into your company
• Informing - The ability to build and deploy your
  own personal supply chain-a supply chain of
  information, knowledge, and entertainment.
  (Google, Yahoo, MSN Web Search)
• The Steroids -Digital, Mobile,Wireless, Personal
  and Virtual

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Successful Response To Integrated
MarketplaceRequires ViTAL Economys 3 Cs for
Economic Development

• Collaboration
• Builds Sufficient Critical Mass to Compete
  Globally, while
• Emerging Cluster Strategies Assure Regional
  Growth
• Connectivity
• Links Geographically Remote Resources to Increase
  Access, while
• Creating Opportunity, Building Diversification,
  Enabling Collaboration
• Changed Spending
• Increases Productivity and Revenues
• Opens New Markets, Expands Opportunity,
• Establishes Measurable Benchmarks and Goals

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Business Cases are Built UsingThe Value Linkage
Process
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What Are the Issues of Challenge in Your Region?

• Your ideas
• Youth brain drain
• Enabling region wide communication
• Ability to adapt to change in economy
• Regionalism projects, initiatives, investments,
  big successes
• The amount of leadership, commitment,
• 2,000 recent dislocated workers
• Access to research and ability to capitalize

28
What Are the Issues of Opportunity in Your
Region?

• Your ideas
• Amount of highly educated citizens
• of foreign and outside region students
  attending SIU
• Technology transfer SIU, others
• Population of young adults that desire to stay in
  the area
• Natural resources
• Retirement destination
• Rural living
• Low cost of business operation

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ViTAL EconomySuccess Cycle
ViTAL Economy
Innovation
Knowledge
Starts With Knowing Who We Are and What Makes Us
Unique
Milestone Meeting 2 3 Activity
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Communities Leveraging Their Economic Advantage

• Coachella Valley, California - Desert Valley,
  Infrastructure, Film
• Nova Scotia, Canada - Youth, Eco-system,
  Environmental Skills
• Western New York - Geography, Connectivity,
  Health Community
• Clallam County, WA - Micro-Climates, Forests,
  Water, Venues
• Karlstad, Minnesota - Red River Valley Spring
  Mud Conditions
• Lanark County, Ontario - Lakes, Clean Air Rights
  and Proximity
• Tasmania, Australia - Micro-Climates, Forest
  Tech, Antarctica
• Singapore - Youth, Fresh Water, Pacific Rim
  Location, Networks

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Economics 101
PProducer CCustomer
Move Up the Value Chain, Capture Greater Share of
Value Chain Margins, Increase Economic Prosperity
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Successful Regions Use TheEight Steps for
Managing Change

• Establish a Sense of Urgency
• Form Powerful Guiding Coalitions
• Create a Vision
• Communicate the Vision
• Empower Others to Act on the Vision
• Plan for, Create, and Communicate Short Term Wins
• Consolidate improvements and Produce More Change
• Institutionalize New Approaches

Source Harvard Business School
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What Will Establish A Sense of Urgency in Your
Region?

• Your ideas
• Recent loss of 2,000 jobs
• Success stories that have been implemented in
  other communities
• Reading The World is Flat
• Kids do not see a bright future
• Average death age in the region
• Aging population healthcare, workforce,
• Regional lack of value of education system and
  results of completion
• Parents that do not care/value their childrens
  education
• Projection of future job losses

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All Strategies, Action Plans and Task Teams
Should

• Enable the region to become a robust integrated
  marketplace
• Exhibit the 3 Cs of a ViTAL Economy
• Leverage the uniqueness of your region
• Move regional economic activity closer to C than
  to P
• Follow the eight steps for managing change
• Apply the value linkage process to define the
  business case for all actions
• Establish and achieve measurable goals
• Move region away from a limited view of economic
  growth to a climate of ever expanding economic
  opportunity
• Take advantage of VE processes for organization
  and self improvement

35
VE Process Creates a Climate of Economic
Opportunity

• The unique thing about ViTAL Economy is the way
  that its process creates an ongoing climate of
  economic opportunity.
• Director of Economic Development

36
Creating a Sub-Regional Framework for Action
Next Steps
37
Connect SI 20-County Phase 1 Roadmap Led By
Connect SI Core Leadership Team
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Understanding Connect SI Phase 1
ActivitiesRelative to Multi-Year VE Initiative
Requirements

• BUILD AWARENESS,
• ASSESS , AND BENCHMARK
• Build Coalitions COIs
• Champion Development
• Establish Regional GDP
• Readiness Assessment
• Asset Mapping GIS
• Build Regional Frameworks
• Benchmarking/Goal Setting
• Funding Strategy
• Visions of Success
• Connectivity Mapping

• STRATEGIZE
• Form Cluster Teams
• Fund Raising
• Rural Cluster Analysis
• Integrated Finance
• Innovation Incubation
• Collaborative Leadership
• Youth Engagement
• Community Branding
• Connectivity Strategy
• Healthcare Strategy

• DEVELOP
• Cluster Business Plans
• Incubation Strategy
• KBE Innovation Strategy
• Finance Strategy
• Collaborative Leadership
• Youth Engagement
• Community Branding

• IMPLEMENT
• Cluster Business Plans
• Collaborative Leadership
• Youth Engagement
• Community Branding
• Integrated Finance
• Incubation Strategy
• KBE Innovation Strategy
• Knowledge Transfer
• Sustainability Plan

• Connect SI has expanded from 17-20 counties
• Readiness Assessments were only conducted for 3
  counties
• Economic Benchmarking Capacity of Region Needs
  Augmentation
• Expansion to Full VE Initiative Requires
  Increased Services

39
Help Connect SI Team Determine What Are the Most
Important Industry Clusters in Your Region
Agriculture Forestry Tourism Technology Alter
native Energy Healthcare Manufacturing Marine
Services Education Senior Living Mining (Coal,
Minerals, Oil Gas) Transportation, Logistics,
Warehousing Distribution
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CED COI Work Plan Prior To September 2006

• Establish a leadership team for this Connect SI
  sub-economic region
• Develop a champion and investor recruitment plan
  to sustain Connect SI
• Identify economic or community development
  reports for Connect SI team
• Clarify how Connect SI could help
  accelerate/benefit existing initiatives
• Define what will enable and sustain regional
  collaboration versus competition

41
CED COI Work Plan Prior To September 2006-contd

• Establish strategies that will address
  challenges to regional collaboration
• Complete, and prioritize issues of challenge and
  opportunity
• Prioritize definition of sub-regions measurable
  goals
• Select the issue that creates the greatest sense
  of urgency for your region
• Focus on collaborations that can result in short
  term wins linked to process
• Define what makes your investment of time, talent
  and treasure worthwhile

42
How Can Your Region Benefit from a Regional
Strategy for Southern Illinois?

• What would make your investment of time, talent
  and treasure worthwhile

43
Community and Economic Development COIGreater
Egypt
1 - VE Vision Workshop, Goal Setting, Jun -
Aug 2006 Issues of Challenge and Opportunity
2 - Develop and Implement Regional
Sep - Nov 2006 Asset Mapping Process 3
- Connected Economy Opportunity Analysis
Dec 2006 - Jan 2007 Leverage Regions
Unique Assets 4 - Economic Opportunity
Industry Sector Feb - Mar 2007
Prioritization Diversification Issues
5- Benchmark Current Economy, Understand
Apr 2007 Future Economy, Establish Regl
Economic Priorities
44
The Reason for Action

• A changing economy impacts the way we
• live, work, learn, govern and connect.
• We cant run a 21st century business, community
  or government
• on 20th century rules.