©2007 ViTAL Economy, Inc.— 1 —
Southern Illinois: Garden of the Gods
Readiness Assessment
Chapter 7: Roadmap to Success
January 8, 2008; revised February 17
CONNECT SI
ViTAL Economy AllianceFrank Knott, Project Lead; Stan Halle, Senior Editor;
Jim Haguewood, Rob Beynon, & Neil Gamroth, Principal Economic Researchers
[email protected]; http://www.vitaleconomy.com
©2007 ViTAL Economy, Inc.— 2 —
7.01 Readiness to Support a Long-term
Connect SI Initiative
7.02 Impact of Achieving 2012 Goals
7.03 Path Forward & Overall Timeline
7.04 Organizing to Succeed
Table of Contents EXECUTIVE OVERVIEW:EXECUTIVE OVERVIEW: the Big Picture & Importance of Change in SIthe Big Picture & Importance of Change in SI
READINESS ASSESSMENT (RA)READINESS ASSESSMENT (RA)
1. State, National & Global Trends1. State, National & Global Trends
2. Indigenous Resources & Industry Asset Mapping
3. Enabling Environment
4. Climate of Innovation, Incubation & Entrepreneurship
5. Southern Illinois Competitiveness
6. Regional Perspectives
7. Roadmap to Success
APPENDICES
©2007 ViTAL Economy, Inc.— 3 —
Chapter 7:Roadmap to Success
7.01 Readiness to Support a Long-Term Connect SI Initiative …. 5
7.02 Impact of Achieving 2012 Goals ………………..………….…. 8
7.03 Path Forward & Overall Timeline …………………………….. 18
7.04 Organizing to Succeed ………………………………………… 31
Southern Illinois — “Garden of the Gods”
Chapter 7 summarizes key recommendations from the RA that should act as a prioritizing filter for Connect SI’s Long-Term Economic Strategy, which is to be released by VE in February
2008 and will contain the budget and timeline for Phase 2 implementation.
©2007 ViTAL Economy, Inc.— 4 —
Purpose of RA Recommendations
Confirm SI regional readiness to launch Phase 2 of a ViTAL Economy initiative — implementing of Comprehensive and Collaboratively-funded Community and Economic Development Strategy
Suggest definable and measurable long-term goals
Establish priority initiatives for achieving success
Provide guidance to Connect SI with regards to expanding the base of community champions, industry cluster leaders, and collaborative funding
Define the Connect SI organizational framework that fosters short-term wins and long term sustainability
Communicate VE’s vision of a robust SI future
7.0 Roadmap to Success: Introduction
©2007 ViTAL Economy, Inc.— 5 —
Chapter 7:Roadmap to Success
7.01 Readiness to Support a Long-Term
Connect SI Initiative
Southern Illinois — "Garden of the Gods"
As the six preceding Chapters in this RA have shown, SI has made important progress towards establishing the foundation of a SI-wide transformation. However, unless the barriers
identified in RA are mitigated, the unique assets of SI may languish and the rich global opportunities identified in this RA may pass the region by.
©2007 ViTAL Economy, Inc.— 6 —
SI Progress Towards Readiness
1,000+ Connect SI participants have worked toward building a foundation for hope through investment of tens of thousands of service hours
Collaborative funding — from local governments, corporations, NGO’s, higher education institutions, small and large healthcare systems, state and federal agencies — attests to the desire to manifest a robust SI future
Network provider collaboration has increased broadband availability by 64% across SI through over $24 million of private investments
Healthcare provider collaboration has achieved significant progress towards addressing critical skills shortages and improved health outcomes by cooperating instead of competing
Connect SI asset mapping has uncovered opportunities to collaborate across the Region that would not have been possible before — leading to numerous short-term wins and long-term opportunities for growth
7.01 Readiness to Support a L/T Connect SI Initiative
©2007 ViTAL Economy, Inc.— 7 —
SI Barriers to Readiness
Continued reliance on state and federal resources as primary sources of capital to fund long-term initiatives rather than to prioritize collaborative funding alliances at the local level — breaking old behaviors is essential
Critical mass of Connect SI champions has not yet been achieved — need to triple its champions to >3,000 active participants, who believe that a climate of economic opportunity is possible for Southern Illinois
Imbedded focus of funding, policy & behaviors on industrial attraction and big employment announcements as the solution to economic growth — versus growing small employer KBE firms (21st Century growth engines) that don’t garner big headlines
Limited recognition of the depth, breadth and length of commitment needed at the leadership, citizen, government, business and media levels to transform a limited growth old economy into an innovation growth economy of unlimited opportunity
Insufficient commitment of the time, talent and resources of existing SI leadership to expand the next generation leaders and to grow the skills necessary to collaboratively become One Region with One Vision
7.01 Readiness to Support a L/T Connect SI Initiative
©2007 ViTAL Economy, Inc.— 8 —
Chapter 7:Roadmap to Success
7.02 Impact of Achieving 2012 Goals
Southern Illinois — "Garden of the Gods"
The net effect of creating 43,300+ new jobs in Southern Illinois is enormous — in terms of stimulus to SI’s economy, increased taxes, and overall prosperity. This section summarizes
SI regional assets, major trends, potential impact of Milestone #1 goals vs. Milestone #5 industry cluster targets, industry cluster priorities, overall impact, and key measures of success.
©2007 ViTAL Economy, Inc.— 9 —
Milestone #1 Goal Setting vs. Milestone #5 Industry Cluster Targets
Milestone #1 focused on a top-down approach to goal setting: Set overall goals for population, labor participation rates, job growth, job
improvement, etc. Did not look at specific industry sectors Defined a sense of urgency and a compelling vision for transforming SI economy Communicated SI top-down goals, urgency and vision publicly on 26 Feb 2007
Milestone #5 focused on a bottoms-up approach to setting industry cluster targets:
Assessed impact of local, regional, national and global research on achieving top-down goals
Summarized results of regional COI work efforts from Milestone#2-4b meetings and COI work groups
Validated SI's ability to achieve and exceed 26 Feb 2007 top-down goals by priority industry sectors
Established more targeted goals for Phase 2 implementation which would assure achievement of Connect SI compelling vision
The following slides illustrate the impact on SI first from the original Milestone #1 goals and then from the Milestone #5 industry cluster targets
7.02 Impact of Achieving 2012 Goals
©2007 ViTAL Economy, Inc.— 10 —
Regional AssetsRegional Assets
• Heartland of America location, equidistant to 2/3 of U.S. markets, central to economic expansion of the Americas
• SIU - a major R&D university with 60+ years history serving students from over 100 world cultures supports global KBE growth
• Robust education and training resources position SI for global workforce training opportunity
• Mild climate, unique natural environment, active lifestyle assets, arts and culture amenities, attractive quality of life characteristics are important factors for KBE, tourism and senior living growth
• Inter-modal logistics, transportation and distribution resources have a strong foundation in SI
• SI has plentiful legacy and alternative-energy assets. SI is a coal leader and is strong in 2 of 4 areas of projected alternative energy growth by 2030
• Heartland of America location, equidistant to 2/3 of U.S. markets, central to economic expansion of the Americas
• SIU - a major R&D university with 60+ years history serving students from over 100 world cultures supports global KBE growth
• Robust education and training resources position SI for global workforce training opportunity
• Mild climate, unique natural environment, active lifestyle assets, arts and culture amenities, attractive quality of life characteristics are important factors for KBE, tourism and senior living growth
• Inter-modal logistics, transportation and distribution resources have a strong foundation in SI
• SI has plentiful legacy and alternative-energy assets. SI is a coal leader and is strong in 2 of 4 areas of projected alternative energy growth by 2030
Connecting SI’s Assets and Trends to 2012 Goals
>$2 BillionNew Annual
Wages
>$2 BillionNew Annual
Wages
41,461 Existing Jobs>$5,000/Yr
41,461 Existing Jobs>$5,000/Yr
27,298 NewHigh-Wage Jobs
27,298 NewHigh-Wage Jobs
$642 MillionNew KBE Activity
1,600+ Firms
$642 MillionNew KBE Activity
1,600+ Firms
4,500+ Families with Healthcare
Coverage
4,500+ Families with Healthcare
Coverage
Lift 10,000 Citizens Out
of Poverty
Lift 10,000 Citizens Out
of Poverty
$200 Million Information Technology Investment
$200 Million Information Technology Investment
Global & Nat’l TrendsGlobal & Nat’l Trends
• Global growth presents SI with opportunity to accelerate its economic growth from 1.34% to 3.85% per year
• KBE activity now accounts for 50% plus of GDP growth, three times the growth in occupations and pays double the average wage of other jobs
• By 2010, the U.S. will have a 10M worker shortfall requiring strong workforce development resources
• 3 of 4 factors required to support KBE activity in rural America are SI strengths
• 58% of all U.S. and global tourists want authentic active, historic and cultural experiences (50-80 million)
• Logistics is a $900 billion U.S. industry in a global $3.43 trillion market growing at 10-15% per year
• 74% global increase in coal consumption, 138% in coal-to-liquid and 66% in bio-fuels by 2030
• Global growth presents SI with opportunity to accelerate its economic growth from 1.34% to 3.85% per year
• KBE activity now accounts for 50% plus of GDP growth, three times the growth in occupations and pays double the average wage of other jobs
• By 2010, the U.S. will have a 10M worker shortfall requiring strong workforce development resources
• 3 of 4 factors required to support KBE activity in rural America are SI strengths
• 58% of all U.S. and global tourists want authentic active, historic and cultural experiences (50-80 million)
• Logistics is a $900 billion U.S. industry in a global $3.43 trillion market growing at 10-15% per year
• 74% global increase in coal consumption, 138% in coal-to-liquid and 66% in bio-fuels by 2030
++ ==
CSI 2012 M/S1 Goals*
Note: Regional Assets (Chap 2); Trends )Chap 1); * Milestone #1 Connect SI Goals were announced to the Public 26 Feb 2007
7.02 Impact of Achieving 2012 Goals
©2007 ViTAL Economy, Inc.— 11 —
Job Creation Impact on SI Economy based on Milestone #1 Goals
Industry SectorNew
Jobs
New
Wages (M)
Healthcare 5,000 $221.7
Tourism 2,537 $69.0
Logistics & Distribution 955 $55.6
Global Workforce Opportunities
10,688 $642.1
Education & Training 336 $10.7
Construction 2,451 $133.1
Energy 1,371 $79.8
Mining 1,867 $74.0
Senior Living 2,095 $113.9
Industry SectorNewJobs
NewWages (M)
KBE 16,000 $752.0
Bio-Agriculture Recreational, Marine, Hunting, Technology Products
& Services Innovation Ecosystem Healthcare Products and Services Green Technologies Homeland Security Response and Services Life Sciences, Plant and Animal Visual and Creative Arts Advanced Manufacturing
CSI-wide Milestone #1 Goals16,379 new jobs at $43,500; 10,919 new jobs between $36,517-$40,785
Improve 41,461 existing jobs by $5,000/yr; $642M new KBE Activity = 1,600+ firms
Over $2B New Annual Wages
CSI-wide Milestone #1 Goals16,379 new jobs at $43,500; 10,919 new jobs between $36,517-$40,785
Improve 41,461 existing jobs by $5,000/yr; $642M new KBE Activity = 1,600+ firms
Over $2B New Annual Wages
Note: New wages based upon current SI wages plus 2% AAGR from 2008-12. Total wages exceed $2B due to applying this growth rate.
7.02 Impact of Achieving 2012 Goals
©2007 ViTAL Economy, Inc.— 12 —
New Jobs Increase Taxes:Federal, State and Local
Each CSI Milestone #1 job adds approximately $10,500 in taxes
64% in federal taxes 36% in state and local taxes
SI original Milestone #1 goal of 43,300 new jobs, at increased income, generates (per year):
$293 million in federal taxes $162 million in state and local
taxes
Analysis includes all taxes: income, consumption, and other
Each New Projected SI Job Generates $10,500 in Taxes
Source: InterVISTAS Development Economics; Northeast Midwest Institute
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
State/Local
Federal
36%
64%
7.02 Impact of Achieving 2012 Goals
©2007 ViTAL Economy, Inc.— 13 —
• Global growth opens up opportunities to expand SI economy beyond its traditional growth rate
• 10 million U.S. worker shortage is an opportunity for SI workforce development resources
• Growth in services exports enable SI to move away from uncompetitive legacy economic activities
• Global growth opens up opportunities to expand SI economy beyond its traditional growth rate
• 10 million U.S. worker shortage is an opportunity for SI workforce development resources
• Growth in services exports enable SI to move away from uncompetitive legacy economic activities
ICT investments contribute 33% to U.S. productivity
growth…this validates importance of NP-COI
SI’s 64% increase in broadband access can better
leverage six-fold increase in e-commerce activity
4 of 5** factors in rural KBE growth are SI strengths
— need to be leveraged for SI economic growth Livable community assets present in SI are an
attraction asset for KBE, Senior Living and Tourism Alternative energy, global warming and “greening”
of society is creating innovation opportunities
ICT investments contribute 33% to U.S. productivity
growth…this validates importance of NP-COI
SI’s 64% increase in broadband access can better
leverage six-fold increase in e-commerce activity
4 of 5** factors in rural KBE growth are SI strengths
— need to be leveraged for SI economic growth Livable community assets present in SI are an
attraction asset for KBE, Senior Living and Tourism Alternative energy, global warming and “greening”
of society is creating innovation opportunities
See: RA Chapter 1
**Five Factors are: • High Quality Workforce• College or Universities• Local Amenities• Transportation Infrastructure• Size
Potential SI Jobs by Industry Sector (1 of 2)(Milestone #5 Industry Cluster Targets)
Global Workforce
Opportunities
18,750New Jobs
Global Workforce
Opportunities
18,750New Jobs
KBE
8,023New Jobs
KBE
8,023New Jobs
©2007 ViTAL Economy, Inc.— 14 —
Climate of Economic Opportunity = an additional 10,210 new jobsNEW GRAND TOTAL = 50,789 Jobs (vs. 27,298 Jobs Feb ‘07)
Climate of Economic Opportunity = an additional 10,210 new jobsNEW GRAND TOTAL = 50,789 Jobs (vs. 27,298 Jobs Feb ‘07)
See: RA Chapter 1
• 77 million retiring baby boomers present an affluent
senior living growth opportunity for SI
• 77 million retiring baby boomers present an affluent
senior living growth opportunity for SI
• Preferred tourism growth sectors indicate SI is
positioned for accelerated tourism growth (Chp 1.08)
• Preferred tourism growth sectors indicate SI is
positioned for accelerated tourism growth (Chp 1.08)
SI energy assets and knowledge are in the sweet spot of energy priorities for growth
SI energy assets and knowledge are in the sweet spot of energy priorities for growth
Significant transportation labor shortages are moving transportation and distribution centers from the coast to the center of North America — SI location and logistics assets position it for growth
Significant transportation labor shortages are moving transportation and distribution centers from the coast to the center of North America — SI location and logistics assets position it for growth
Potential SI Jobs by Industry Sector (2 of 2)(Milestone #5 Industry Cluster Targets)
Senior Living
3,676New Jobs
Senior Living
3,676New Jobs
Energy & Mining5,680
New Jobs
Energy & Mining5,680
New Jobs
Tourism4,450
New Jobs
Tourism4,450
New Jobs
Log/Trans//Dist1,675
New Jobs
Log/Trans//Dist1,675
New Jobs
©2007 ViTAL Economy, Inc.— 15 —Source: “State of Working Illinois”, by Northern Illinois University (Nov 2005); “21st Century Workforce” (May 2004); IMF; VE research
Ave
rag
e A
nn
ual
G
row
th R
ate
%
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
3.85%
“Stay the Course” vs. “Change the Course”
AAGR Connect SI Goals 2008 - 2012
0
1
2
3
4
5
6
AAGR 1977-2001
Worldwide USA State-wide Southern Illinois
1.34%
2.19%
3.14%
5.62%
Milestone #1 Goals Increase GRP by $2.9B (2012); $162M in additional State & Local tax revenue
Milestone #5 Targets Increase GRP by $5.2B (2012); $292M in additional State & Local tax revenue
Milestone #1 Goals Increase GRP by $2.9B (2012); $162M in additional State & Local tax revenue
Milestone #5 Targets Increase GRP by $5.2B (2012); $292M in additional State & Local tax revenue
Taking Control of SI’s Destiny: Aggregate Results 7.02 Impact of Achieving 2012 Goals
6.89%
M/S#1
M/S#5
©2007 ViTAL Economy, Inc.— 16 —
Measurable Indicators of ProgressTowards 2012 CSI Goals
It’s Time to Go Global!
0
2
4
6
8
10
12
Exports as a %of GDP
U.S.
Illinois
SI
11%
8.4%
2.4%0%10%20%30%
40%50%60%70%
Private SectorPayroll & Benefits
TransferPayments, All
Gov't & EducationEarnings
U.S.
IL
SI
54%
33%36%
46%
67%64%
SI Becomes
an Innovation Economy
0.00
10.00
20.00
30.00
40.00
50.00
60.00
2005Southern Illinois USA-RuralUSA-Average Best in World
% P
enet
rati
on
o
f P
op
ula
tio
n
SI is a Global Broadband Leader
12%
24%
34%
54%
Insured population +10%
Medicaid -26%
Medicare +18%
UninsuredUninsured -32% -32%
Healthcare Economics are Transformed!
7.02 Impact of Achieving 2012 Goals
©2007 ViTAL Economy, Inc.— 17 —
Big Impact for Southern Illinois:10,000 Citizens No Longer in Poverty!
SI Poverty Rates When 2012 Goals Are Reached
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
AlexanderGallatinHamilton
HardinJacksonJeffersonJohnsonMassacPope
PulaskiRandolph
Saline Union White
WilliamsonFranklin
Perry WayneEdwardsWabash
2000 Poverty 2012 Poverty
Illinois Average 10.7% (2000)
U.S. Average 12.7% (2000)
2000 SI Poverty: # of SI Counties: 1 - lower than Illinois poverty rate
4 - lower than U.S. poverty rate
2000 SI Poverty: # of SI Counties: 1 - lower than Illinois poverty rate
4 - lower than U.S. poverty rate
14.4% Poverty
Decrease
14.4% Poverty
Decrease
2012 SI Poverty: # of SI Counties: 4 - lower than Illinois poverty rate10 - lower than U.S. poverty rate
2012 SI Poverty: # of SI Counties: 4 - lower than Illinois poverty rate10 - lower than U.S. poverty rate
Source: 2000 US Census; Center for Rural Health & Socal Services; VE analysis
7.02 Impact of Achieving 2012 Goals
©2007 ViTAL Economy, Inc.— 18 —
Chapter 7:Roadmap to Success
7.03 Path Forward & Overall Timeline
Southern Illinois — "Garden of the Gods"
This section outlines the key steps in transforming SI’s economy from a Climate of Limited Opportunity to a Climate of Unlimited Opportunity. The “Collaboration” theme discussed
throughout this RA is fundamental to SI’s future success — not just in leveraging the unique assets of the Region, but in demonstrating the willingness of all sectors (public & private) to be integral
participants in manifesting that success.
©2007 ViTAL Economy, Inc.— 19 —
Actions Fundamental to SI Economic Prosperity (1 of 2)
Address SI Dilemma — transition from a Climate of Limited Opportunity to a Climate of Unlimited Opportunity
SI citizens must believe that they have the ability to take control of their destiny Education of SI uniqueness and opportunity is critical to turning belief into action
Increase SI’s private sector contribution from 46% to national level of 65%; reduce SI’s dependence on public sector income from 54% to national level of 36% by 2012
Critical to establish an SI climate of innovation versus a climate of risk-aversion Requires a 30% increase in private sector wage contribution to personal income
Improve global export literacy and double global export value in SI ‘s economy Required to increase flow of external capital into SI, hence investment attraction Leverages SI indigenous resources — from Sow Our Own to Grow Our Own
Implement economic strategies to grow SI economy at 3.85% vs 1.34% annually Increased prosperity is dependent on accelerated growth SI infrastructure investments cannot be met without increasing economic growth
7.03 Path Forward and Overall Timeline
©2007 ViTAL Economy, Inc.— 20 —
Actions Fundamental to SI Economic Prosperity (2 of 2)
Change economic development focus from legacy (manufacturing & commodity agriculture) to KBE global products & services
This is where the high value, high wage job growth opportunities abound
Emphasizes growth of firms not negatively impacted by Illinois weaknesses
Grow breadth and depth of Connect SI visionary leaders & champions Commitment to a compelling long-term Vision by more leaders is critical
Critical mass of 3,000+ champions is critical to sustain this fundamental change
Expand base of collaborative funding support for Connect SI strategies Long-term consistency in strategy focus is dependent on regional control
“Cavalry is coming” mentality must be dispelled to transform expectations
Support a long-term regional framework to guide regional growth Regional collaboration can only take place through a regional framework
Access to a broader base of financial, data and human resources is assured
7.03 Path Forward and Overall Timeline
©2007 ViTAL Economy, Inc.— 21 —
• Mindset: willingness to accept mediocrity and lack of a sense of excellence
• Insufficient climate of collaboration and trust making change very difficult
• Continuing belief that “the cavalry is coming” despite proof to the contrary
• Losing the best and brightest• Lack of participation in the global economy• Continued focus on traditional economic sectors
in decline rather than rising economic sectors• Climate of economic (and community) despair• Public policy/funding priorities reinforce old
economy strategies, and inhibit new ones
SI’s Big Dilemma:Climate of Limited Opportunity
Resulted in only 1.35%
AAGR for last 25 Years
Resulted in only 1.35%
AAGR for last 25 Years
SI’s future hangs in the balance!SI’s future hangs in the balance!
• Fragmented and poorly leveraged
• Primary focus on local opportunities
• Insufficient # of visionary leaders
• Too many political boundaries
Issues Weighing
Down SI
Indigenous
Resources &
Innate Talents
SI’s Current
State
7.03 Path Forward and Overall Timeline
©2007 ViTAL Economy, Inc.— 22 —
SI Enabling Environment Challenges are at the Core of the SI Dilemma
Lack of collaboration is hampering prosperity Creates a climate and reputation of conflict and distrust Results in an inability to fund or achieve project success due to lack of resources
Listless business climate for retention and attraction IL’s court system is rated as unreasonable to business Multiple government and taxing districts cause a confusing business environment
Connectivity expansion is a marketable opportunity but literacy must increase The recent expansion of broadband service, supported by a clearly defined goal is
positioning SI for KBE growth and attraction — coupled with an investment in connectivity literacy
SI’s natural environment is neither widely respected nor being leveraged The region has the largest concentration of natural environment assets in the Mid-
west, but is not reaping the benefits Reluctance to change will guarantee an atmosphere of dependency
The new economy is changing faster than ever before primarily driven by innovation and technological advancements that will not wait for individuals and companies to keep pace
Rural regional economies that can effectively meet the workforce needs and business demands of a KBE economy will be the envy of others
7.03 Path Forward and Overall Timeline
©2007 ViTAL Economy, Inc.— 23 —
Enabling Environment RecommendationsAre The Solution To SI Dilemma
Improving the enabling environment of SI is the key to addressing the SI dilemma The results of the Readiness Assessment clearly demonstrate that SI behavior and mindset is the
only thing standing in the way
Without the changes proposed in this chapter, SI will be far less able to leverage its unique
indigenous resources to take advantage of current global and national trends
Our primary recommendations:
#1 — Implement a regional Multi-Media Branding Strategy for internal and external markets
#2 — Create a Crossing Boundaries Institute linked into existing leadership programs
#3 — Implement a Youth Engagement Strategy
#4 — Incorporate Collaborative Funding as a fundamental part of the DNA of SI
#5 — Establish a Comprehensive SI Data Mining Portal that is a model for Illinois
#6 — Implement Broadband Connectivity Infrastructure and Digital Literacy Strategy
#7 — Develop an SI Livable Community Forum
The successful transformation of SI from a limited to an unlimited growth economy depends upon the ability of the Region to change its thinking & behaviors
The successful transformation of SI from a limited to an unlimited growth economy depends upon the ability of the Region to change its thinking & behaviors
7.03 Path Forward and Overall Timeline
©2007 ViTAL Economy, Inc.— 24 —
• Less willingness to accept mediocrity• Improving climate of collaboration and
trust making change less difficult• Losing fewer of the best and brightest• Less focus on traditional economic
sectors in decline • Less of a climate of economic despair• Public policy/funding priorities shifting
SI’s Potential:Climate of Unlimited Opportunity
• Linked across the Region & highly leveraged
• Active visionary leaders• Collaboration abounds• Boundaries are being
crossed• New behaviors• Global focus
Issues Weighing Down SI Indigenous Resources &InnateTalents
Results in over 3.85% or
better AAGR for NEXT 25
Years
Results in over 3.85% or
better AAGR for NEXT 25
Years
Growth & prosperity realized!Growth & prosperity realized!
SI’s Future State
7.03 Path Forward and Overall Timeline
©2007 ViTAL Economy, Inc.— 25 —
Phase 2 Priorities for Success (1 of 2)
1. Expand NP-COI connectivity broadband deployment with professional support for an additional twelve months; this includes expansion of enterprise applications for healthcare, education, R&D and tech transfer research collaboration with private sector
2. Broaden base of Connect SI champions and gain re-commitment of Phase 1 champions. Repeat January-June 2006 road show using RA data to garner additional support
3. Invest robust resources in a collaborative funding strategy to raise $1.5 million in cash and in-kind resource commitments to Connect SI for FY 2008 and for FY 2009
4. Establish Connect SI as a regional data portal for SI. Local municipalities are already benefiting from regional data assembled by Connect SI, which has helped local economic development professionals attract businesses to SI. There is no other long-term reliable source for consistent, accurate and integrated data for SI
5. Select four industry clusters for Phase 2 research and implementation in 2008. Recruit private sector leadership teams during first quarter of 2008 for each industry cluster. Identify experienced rural industry cluster research teams to guide cluster teams
6. Commit to a sense of urgency that is communicated region wide. Educate citizens and leaders on the economic realities and need for change today rather than tomorrow. Invest in Connect SI marketing strategy in support of broadband, champion development, collaborative funding and private sector recruitment goals
7.03 Path Forward and Overall Timeline
©2007 ViTAL Economy, Inc.— 26 —
Phase 2 Priorities for Success (2 of 2)
7. Leadership Advisory Committee agrees to resource the Healthcare COI to aggressively achieve the transformative qualitative and quantitative goals it established in Phase 1
8. Focus four regional COI’s on recruitment of industry cluster participants for prioritized SI-wide industry clusters. Have COI leadership guide implementation of at least two short term win opportunities every six months, which are connected to achieving COI goals
9. Fund and establish a collaborative leadership institute to address critical shortage of visionary leadership across SI. Include youth engagement in this, so that youth brain drain can be successfully addressed for the long-term
10. Review RA findings and work with ViTAL Economy to integrate RA findings into the SI-wide economic strategy to be released in 1st quarter 2008
11. Commit to obtain and invest resources required to implement Connect SI Phase 2 economic strategy and achieve qualitative and quantitative goals starting April 1 2008. This includes approval of Connect SI Phase 2 implementation timelines, funding and professional resources
12. Develop a 501(c)(3) framework for Connect SI, so that independent government and foundation funding, that cannot be received by SIU or ManTraCon, can be accessed. This is particularly critical with regard to approved legislation dealing with digital divide funds from state and federal sources
7.03 Path Forward and Overall Timeline
©2007 ViTAL Economy, Inc.— 27 —
All new jobs created byIndustry Clusters will be
targeted to include private payer health benefits for
workers and families
All new jobs created byIndustry Clusters will be
targeted to include private payer health benefits for
workers and families
Phase 2 Industry Cluster Priorities for Achieving 2012 Connect SI Goals
The following Industry Clusters emerged from the extensive COI asset mapping and opportunity assessment activities during Phase 1:
Tourism Bio-Agriculture Knowledge Based Enterprises (KBE)
Healthcare Technology Products & Services Advanced Manufacturing Recreational, Marine, Hunting, Technology Products & Services Visual Creative & Performing Arts and Services International Incubation and Innovation Green Technologies Homeland Security Response and Services Life Sciences, Plant and Animal
Global Workforce Opportunities Energy Mining Technology Transportation, Logistics & Warehousing Senior Living
7.03 Path Forward and Overall Timeline
©2007 ViTAL Economy, Inc.— 28 —
Collaborative Investment Rationale
• Collaborative funding of Connect SI initiatives is one of the most critical
determinants of SI’s ability to sustain a long term transformation of Southern
Illinois’ economy
• Successful collaborative funding starts at the local and regional level and is
only then matched by state, federal and foundation investments — this is
critical to reversing SI’s decades long sense of external dependency
• ViTAL Economy initiatives, which commit to collaborative funding as a core
principle, experience anywhere from a 5:1 to 12:1 ratio of
external-to-local/regional investments — the average ratio over 15 years is
≈7:1
• A $1,500,000 annual collaborative funding goal is recommended — a strategy
for accomplishing and exceeding this goal is on the following slide
• Connect SI leadership commitment to this strategy is critical. While ViTAL
Economy can help guide and train leaders to implement this strategy, it must
be locally led by a committed group of SI-based leaders
7.03 Path Forward and Overall Timeline
©2007 ViTAL Economy, Inc.— 29 —
Collaborative Funding Strategy: Goals
Source # ‘08/‘09/‘10 $/Year FY 2008 FY 2009 FY 2010
Large Local Governments 5/7/9 $5,000 $25,000 $35,000 $45,000
Mid-Size Local Government 20/25/30 $2,500 $50,000 $62,500 $75,000
Moderate Size Local Gov’ts 30/40/50 $1,000 $30,000 $40,000 $50,000
Small Local Governments 100/120/140 $500 $50,000 $60,000 $70,000
SI Public Citizens 2K/3K/4K $25 $50,000 $75,000 $100,000
Gen’l Business & Industry 20/30/40 $1,000 $20,000 $30,000 $40,000
Healthcare COI N/A $75,000 $75,000 $75,000 $75,000
Network Provider COI N/A $75,000 $75,000 $75,000 $75,000
Financial Service Firms 20/30/40 $5,000 $100,000 $150,000 $200,000
Private Sector Cluster Match 4/4/4 $60,000 $240,000 $240,000 $240,000
Southern Illinois University N/A $200,000 $200,000 $200,000 $200,000
Not-for Profits 50/75/100 $500 $25,000 $37,500 $50,000
State Government N/A N/A $300,000 $350,000 $400,000
Federal Government N/A N/A $300,000 $350,000 $400,000
Foundations 2/4/6 $50,000 $100,000 $200,000 $300,000
In-Kind Services N/A N/A $250,000 $250,000 $250,000
Total Investment/Year N/A N/A $1,890,000 $2,230,000 $2,570,000
7.03 Path Forward and Overall Timeline
©2007 ViTAL Economy, Inc.— 30 —
Phase 2 Implementation Timeline
PHASE 2Implement Collaborative Funding ($1.5 Million/year)
Extend Broadband Connectivity (NP COI)
Recruit More Champions & Leaders (>3,000)
Implement COI Action Plan (through 2012)
Develop/Implement Regional Framework
Develop/Launch Collaborative Leadership Institute
Implement Regional Branding Strategy
Form/Implement Industry Cluster Strategy (10-12 @ 4 minimum/year)
Establish SI Regional Data Portal
Implement Youth Engagement Strategy
Develop/Implement Innovation Ecosystem
Develop/Launch Integrated Finance Strategy
Set Up SI Livable Community Forum
7.03 Path Forward and Overall Timeline
VISION
&
GOALS
VISION
&
GOALS
Year Two Year ThreeJan 2008
Jan 2009
Jan 2010
©2007 ViTAL Economy, Inc.— 31 —
Chapter 7:Framework for Success
7.04 Organizing to Succeed
Southern Illinois — "Garden of the Gods"
One of the most powerful organizing concepts to deploy in Southern Illinois is the “Starfish” — described in Chapter 3.05 Adaptability Slide 73. This approach can greatly facilitate collaboration, leverage assets spread across SI, and provide an effective pathway around other cultural barriers. This Section applies a starfish-hybrid to a SI Regional Framework and an Innovation Eco-System
— ending the RA with the COIs & ViTAL Economy’s vision of SI’s future.
©2007 ViTAL Economy, Inc.— 32 —
Recommended Connect SI 501(c)3 Regional Framework: Starfish Hybrid**
7.04 Organizing to Succeed
**Source: Starfish and the Spider, Brafman & Beckstrom 2006
Connect SI Implementatio
nPartners
Connect SI501(c)3 BoardCollaborative
Funding Partners
Industry Cluster
Steering Committee
Industry Cluster “A”
Industry Cluster “B”
Industry Cluster “C”
Industry Cluster “D”
REGION-WIDEFOCUS
HealthcareCOI Leadership & Sub-Teams
GW COILeadership
Team
Other GE Action Teams
GW Action Team “A”
GW Action Team“B”
GW Action Team “C”
GW Action Team “D”
Future GW Action Teams
COI-Specific FOCUS
S5 COILeadership
Team
Other GE Action Teams
S5 Action Team “A”
S5 Action Team“B”
S5 Action Team “C”
S5 Action Team “D”
Future S5 Action Teams
SE COILeadership
Team
Connect SI Strategy
Other GE Action Teams
SE Action Team “A”
SE Action Team“B”
SE Action Team “C”
SE Action Team “D”
Future SE Action Teams
Cross-Regional Collaboration
Network ProvidersCOI Leadership &
Sub-Teams
Connect SIStrategy
GE COILeadership
Team
Other GE Action Teams
GE Action Team “A”
GE Action Team“B”
GE Action Team “C”
GE Action Team “D”
Future GE Action Teams
©2007 ViTAL Economy, Inc.— 33 —
Recommended Connect SI 501(c)(3) Regional Framework: Notes
• Framework insures that long term success is not dependent on what government is in power
• Connect SI: o Advisory board positions are as currently designated with addition
of two industry cluster reps from the Industry Cluster Steering Committee
o Staff and leadership are responsible for collaborative funding & CED strategy
o Project implementation occurs through regional collaborative partners
o Remains an initiative sponsored by SIU as a regional partner• Region specific activities managed by regional COIs• SI Region-wide activities serving all COIs managed by
Connect SI 501(c)(3)
7.04 Organizing to Succeed
Source: Starfish and the Spider, Brafman & Beckstrom 2006
©2007 ViTAL Economy, Inc.— 34 —
Economic Growth Can Be Greatly Stimulated by Implementing an Innovation Eco-System™
SI Incubator, Finance & Innovation Starfish Network
— the KBE-Engine of Connect SI —
SI Entrepreneurs Served by SharedRegional Network
Of Incubator Centers of Excellence
Life Cycle Equity and Debt
Finance Resources
Global Best PracticeTechnical Support
Teams
Broadband-Enabled
SI Entrepreneurs Served by SharedRegional Network
Of Incubator Centers of Excellence
Life Cycle Equity and Debt
Finance Resources
Global Best PracticeTechnical Support
Teams
Broadband-Enabled
W. FrankfortBusinessIncubator
GE IncubatorTech Transfer
Dixon SpringsAg-Tech Incubator
SWI Retail Incubator
Edwardsville
Ethanol Research
Center
SIU MedicalSchool
GW Incubator
Coal ResearchCenter
S5 SBDC
SE SBDC
EntrepreneurCenter
Centralia EC
SIUE-EC
IMEC
MedicalTechnologyIncubator
InternationalIncubator
7.04 Organizing to Succeed
Source: Starfish and the Spider, Brafman & Beckstrom 2006
©2007 ViTAL Economy, Inc.— 35 —
Innovation Eco-System™: Benefits
A self-sustaining system whose individual members benefit from each others
participation via symbiotic relationships
Relationships established across different industries become mutually
beneficial and self-sustaining
GOAL: to generate entrepreneurial ventures within the economy
served by the Ecosystem
Composed of a series of connected but separately controlled innovation assets:• Business Incubators• Technology Transfer Resources• University Research Centers of Excellence• Entrepreneur and Innovations Assets• Workforce Development Assets• SBDC Resources• Community Colleges• Integrated Equity & Debt Finance Framework
The SI Ecosystem becomesa first-mover/pioneer that is
very difficult for other regions to emulate
The region exhibits network effects establishing lock-inmaking the cost of moving
prohibitive
SI takes on gazelle-like
behaviors (speed & agility) that
attract and retain entrepreneurs,
venture capitalists and students
1 2
37
45
6
7.04 Organizing to Succeed
©2007 ViTAL Economy, Inc.— 36 —
LOOKLOOK FEELFEELACTACT
Source: Milestone Visioning Exercise from GW, GE and S5
CSI Participants: Vision of SI’s Future
Construction is going onDowntowns look niceSense of pride in our
properties; less trash, more flowers
More ideal retail availableBroadband is everywhereNatural beauty, farmlands
are preservedNew housingMaintain our historical
buildings; respect our heritage
Good mix of industry and business
Healthcare is widely available
Smart use of the brownfields
Construction is going onDowntowns look niceSense of pride in our
properties; less trash, more flowers
More ideal retail availableBroadband is everywhereNatural beauty, farmlands
are preservedNew housingMaintain our historical
buildings; respect our heritage
Good mix of industry and business
Healthcare is widely available
Smart use of the brownfields
More educational opportunities
People are doing business outside of the area; world markets
Intentionally acting in a collaborative manner
Street talk has changed to newest activities and additions to the community
Business able to compete in the global economy
People are proud of their community
“Walk the Talk”Comfort with risk and
entrepreneurship and innovation
Middle-aged and older folks are not afraid of IT
More educational opportunities
People are doing business outside of the area; world markets
Intentionally acting in a collaborative manner
Street talk has changed to newest activities and additions to the community
Business able to compete in the global economy
People are proud of their community
“Walk the Talk”Comfort with risk and
entrepreneurship and innovation
Middle-aged and older folks are not afraid of IT
Positive perception of the area
Pride in the communityNew people feel welcome,
open door feelingWe are a “20 county” regionSI is a world recognized
regional brandValue education and a
sense of communityHigh school students feel
good about staying in the region
A new cultural atmosphereMore young people bring a
vibrancy to the regionStrong small town
environment
Positive perception of the area
Pride in the communityNew people feel welcome,
open door feelingWe are a “20 county” regionSI is a world recognized
regional brandValue education and a
sense of communityHigh school students feel
good about staying in the region
A new cultural atmosphereMore young people bring a
vibrancy to the regionStrong small town
environment
7.04 Organizing to Succeed
©2007 ViTAL Economy, Inc.— 37 —
VE’s Vision of SI’s Future
Southern Illinois is the global location where inter-generation active lifestyle families, visitors & KBE workers choose to live work and play — growth abounds
SI’s historic liability of remoteness & lack of access becomes an asset; instead of forgotten by Chicago, Springfield and Washington, SI is a land & lifestyle that is treasured, respected, sought after and envied — there is only one SI in the World
SI communities see themselves in a new light — are respectful of their place, see themselves as gateways to a land that is "The Garden of The Gods"
Tourism venues, town centers,rural lands, business locations and neighborhoods all demonstrate by their look and feel that SI is a very special place to be preserved and enhanced for all time
SI is a place of welcome for people of all cultures whether visiting or living here; in the Land of "The Garden of the Gods", all are welcome and of value
It is a place many want to be, but only the fortunate choose to take advantage of this unique opportunity — SI becomes a place that is worth a premium, rather than one that feels it must offer a discount to be desired
Source: ViTAL Economy Alliance
7.04 Organizing to Succeed
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