©2007 vital economy, inc. 1 southern illinois: garden of the gods readiness assessment chapter 3:...

©2007 ViTAL Economy, Inc.— 1 —

Southern Illinois: Garden of the Gods

Readiness Assessment

Chapter 3: Enabling Environment

Revised February 15, 2008

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


3.01 Climate of Collaboration

3.02 Governance

3.03 Broadband Connectivity

3.04 Livable Communities

3.05 Adaptability to Change

3.06 Implications &

Recommendations

Table of Contents EXECUTIVE OVERVIEW:EXECUTIVE OVERVIEW: the Big Picture & the Big Picture &

Importance of Change in Southern IllinoisImportance of Change in Southern Illinois

READINESS ASSESSMENT (RA)READINESS ASSESSMENT (RA)

1. 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. Framework for Success

APPENDICES


Chapter 3:Enabling Environment

3.01 Climate of Collaboration ………………….. 5

3.02 Governance…………………..…………….. 15

3.03 Broadband Connectivity ………………….. 34

3.04 Livable Communities ……………………… 49

3.05 Adaptability to Change ……………………. 62

3.06 Implications & Recommendations ……….. 75

Southern Illinois — "Garden of the Gods"

In order to take advantage of the trends (Chapter 1) and leverage what makes SI unique (Chapter 2), the key enablers listed below determine whether the SI climate is able to take advantage of these trends and unique

assets. This Chapter assesses the readiness of these key enablers to support positive economic growth. Enabling environment performance is the key variable in determining if SI is able to address SI’s Big

Dilemma.


Key Enablers to Making Our Future a Reality

Collaboration is the essential behavior of a 21st century “World is Flat” economy — independent and hierarchical behavior is out — interdependence is valued as a strength not a weakness

Governance practices must be transformed to support the reality of a 24/7 globally competitive economy — best practice economies are the most effective and efficient at making it easier for work and workers to compete, live, learn, innovate, grow & collaborate

Connectivity is the key enabling infrastructure for effective collaborative regional economies — a mindset as well as an infrastructure that changes how we transact business, govern, communicate, relate & access resources

Livable, sustainable or gateway communities are welcoming environments that support innovation, embrace creative culture and attract KBE work and workers desiring quality of life locations

Adaptability to change is necessary for persons or entities who live and operate and want to be effective, relevant and successful in fast paced ever changing 21st Century economic environments

3.0 Enabling Environment





The best performing wealth-creating communities have recognized the strategic implications of moving from a ‘culture of independence’ to one of ‘interdependence and collaboration’. They recognize that technology

convergence has caused the compression and collapse of organizational hierarchy. Collaboration of all kinds across public/private sectors is the way that individuals and organizations create enough critical mass to

compete in a global marketplace.


What is Collaboration?

Collaboration is the essential leadership and management model of behavior for people functioning in a global, converging, and chaotic world

It is a lifestyle change that requires us to throw away our command and control models of behavior, and our desire to control versus share resources

Collaboration is the only organizational model that makes sense in a ‘24/7 World-is-Flat Economy’

It is a way of life different than the one we have known

Collaboration means sharing of resources and prioritizing interdependence over independence

Shared resources include financial, human, information, infrastructure, organizational, or knowledge assets

Collaboration is a more efficient and effective use of government, not-for-profit, business or personal resources


“The boundaries between companies, towns and organizations will blur as they view themselves as part of an ecosystem, supply chain, or value chain”

- Hasso Plattner, SAP

“The boundaries between companies, towns and organizations will blur as they view themselves as part of an ecosystem, supply chain, or value chain”

- Hasso Plattner, SAP


Why Collaboration is Critical“Neighbors 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 which enables a rationalization and alignment of sub-regional regulatory and tax policies — creates an attractive and effective economy for workers and work to compete with unified country strategies



In a Collaborative Environment: Boundaries Disappear — Non-SI Examples

Healthcare:161 healthcare sites across four counties and 10 toll-calling areas collaborate to

create the first toll-free virtual rural healthcare service between doctors, clinics, pharmacies, therapists, labs and hospitals

Government: Tasmania creates in one year a 24/7, one stop on-line citizen access to services

from 29 local and State government agencies plus healthcare, education & NGO’s across 26,383 sq. miles serving 484,000 citizens

Education: Five K-12 school districts, Peninsula College and private & public workforce

development assets collaborate to build the first co-owned business incubator and skills training center

Innovation: Nova Scotia virtually connects every remote fishing village with a college without

walls to Dalhousie University to increase entrepreneurship that leverages its computer science expertise to develop over 300 village based software companies

Tourism: Collaboration of tourism, agriculture, wineries, seafood distributors and restaurants to

create a local festival leveraging the regions indigenous resources. On-line sales strategies enabled year round purchases. Dungeness Crab and Seafood Festival now attracts over 30,000 visitors to the region in one weekend

Natural Resource: Declining forestry industry in Pacific Northwest collaborates to map assets

and link competitive resources to uncover new market opportunities based on indigenous resources and linking value chain components — expanded employment and new plants built for first time in 30 years



SI Has a Foundation of Collaboration

SICCM is an example of a long standing and successful regional collaboration The Southern Illinois Collegiate Common Market (SICCM) is a 501(c)(3) not-for-profit

corporation organized in 1973 to provide a means of sharing human and material resources in higher education. Articulation agreements,allied health programs, tourism training, allied grant programs, etc

Members include: John A. Logan, Rend Lake, & Shawnee Colleges; SIC, SIU

The Wine Trail/B&B cross-sector collaboration — marketing & packaging of assets to capture a larger market

Connect SI leaders have achieved levels of collaboration that have brought SI statewide & national recognition as well as collaborative funding success

Network Providers meeting as a Community of Interest (COI), sharing data for the first time, setting ambitious goals together — posting of queries for broadband service on a common server, collaboration to expand broadband across SI

Healthcare Providers meeting as as a COI, sharing data for the first time, setting ambitious goals together — addressing issues re improving healthcare outcomes, connectivity, access, and profitability; integrated databases

COI’s sharing information and resources beyond county, town and regional boundaries

Man-Tra-Con has been recognized within and outside the region for its leadership in building collaborative partnerships for Workforce Development



SI Examples of Collaboration Success

Healthy Community Coalitions across seven counties REDCO, Electric Co-ops & South Water, Southern Services, etc. GW, SE and S5 towns collaborating to create critical mass for broadband On-Line Nursing Program Collaboration — Frontier College, Wabash Valley

College, HC-Skill Shortage Team Critical Access Hospitals working together — S5 & GW Integrated Healthcare Critical Skills Training Resources – across all SI Energy Cluster Team — SI-wide symposia S5 Clean Coal Gasification Project — S5 cross-town, cross-agency Regional Creation of the Economic & Healthcare Models — all COIs Collaboration in development of GIS mapping resources Preparation of WIRED Proposal — all COIs, Man-Tra-Con, SIU, SIH, etc. Route 13 Corridor Expansion World Shooting Complex Continental University-Rend Lake, SIU & Continental Tire SIU-reinvigorated outreach partnership with SI region

These examples demonstrate an SI ability to collaborate, however many SI citizens view SI collaboration as only skin deep

These examples demonstrate an SI ability to collaborate, however many SI citizens view SI collaboration as only skin deep




Perceptions of SI Citizens

Key findings from a wide cross-section of interviews conducted in SI: there is a significant lack of collaboration:

These myopic practices pervade SI — the lack of collaboration has been very costlyThese myopic practices pervade SI — the lack of collaboration has been very costly

Source: RA and EF Hutton Interviews conducted by VE Team

People working in ‘silos’; don’t talk with each other, don’t know what the others are doing; too many rivalries between and within communities

Perception of ‘pie stealing’ rather than ‘making the pie bigger’; banking environment: ‘We swap customers; there’s little growth’

In every sector, public, private, non-profit, being too successful is frowned upon — We have this attitude of not wanting our neighbours to be successful

Region is fragmented by jealousy, distrust, and a culture of fierce independence

Power resides in a few individuals which limits collaboration

We don’t know how to collaborate; in Missouri, four school districts joined together to build one high school — instead, our town leaders insist on each having their own, so

nothing modern ever gets built; it is all about power and who controls what


The Primary Barrier to Collaboration

SILO-VISION

Education Health Care Business

Despite the existence of ‘collaboration points-of-light’ in SI there is a pervasive sense that ‘Silo-Vision’ behavior is a deeply imbedded instinct in SI culture — successful transformation of SI economy will require a comprehensive strategy to breakdown barriers to collaboration

Government



= Weak to None = Improving = Average = Good = Strong

Areas of Review Rating Assessment Rationale

Education Providers SICCM is a model for higher educational collaboration.

Further collaboration is required, including K-12 to meet local and global workforce needs

Healthcare Services Competition over a static market has resulted in a lack

of collaboration. CSI Healthcare COI has begun to change this climate

Government Agencies Limited collaboration between cities, towns, villages

and county governments in SI. The number of taxing jurisdictions is a disincentive to collaboration

Cross Sector Linkages

Best practice communities pursue collaboration between education, healthcare, government, business and citizens. This enables more effective and efficient access to services and sharing of resources in a 24/7 globally competitive economic landscape

Economic Development

SIDEZ, REDCO, REDI, regional planning districts are positive but limited examples of ED collaboration. CSI has become an expanded model for successful region wide collaboration, much more is needed

Southern Illinois: Collaboration Assessment (1 of 2) 3.01 Climate of Collaboration


Areas of Review Rating Detailed Readiness Rationale

Innovation Assets

Incubators, SBDC, extension programs, research parks, entrepreneurship programs and tech transfer resources have limited or no connection with one another — budgets are separate and limited in scope

Not-for-Profit Partnerships Healthy community initiatives, Access SI and workforce

development partnerships are evidence of ability to collaborate, but most do not chose to collaborate

Flat vs. Hierarchical Organizations

SI government institutions, non-profits and many businesses still function with industrial age, hierarchical versus flat organizational frameworks

Collaboration Literacy SBJ’s One Region – One Vision initiative has been a

singular effort to build collaborative behaviors and understanding in SI, where such experience is limited

Access to Government Services

The most effective and efficient globally competitive communities enable citizens, businesses and institutions to share resources and access services seamlessly across boundaries 24/7; for the most part, this is not a current reality in SI

Southern Illinois: Collaboration Assessment (2 of 2)3.01 Climate of Collaboration



3.02 Governance


As the world becomes flatter and the pace of change increases, it is imperative that state and local governments be more nimble and more responsive to business needs. Their role must be to facilitate success,

not erect more road blocks, and to enable a 24/7 world of effectiveness and efficiency. The business climate of a region is measured in terms of how easy versus how difficult is it for new businesses to be successful and for

established business to remain competitive.


Governance: Intro

In an economy where global connectivity resources enable business transactions to take place in seconds across country political boundaries, its unrealistic to continue to act as if local geographic or political boundaries still make a difference.

Citizen satisfaction with government services equals the difference between their perception of what they receive and the expectation of what they want to receive. The more negative the gap between perception and expectation, the lower the citizens’ belief in the legitimacy of our governmental institutions. This gap is widening further everyday due to the high level of expectations created in the simple use of credit cards, cell phones, PC’s and PDA’s. These devices allow us to shop globally, access our bank accounts, make investments, obtain information we need at home, work or on the go.

Education is still delivered through industrial aged silo organizations. If the skills of tomorrow’s workforce are problem identification, problem solving, and strategic brokering, then the way education and training organizes and acts, not just the curriculum, must reflect the primacy and delivery of these skills. We need collaboration of resources across the education and training spectrum to meet the demands of the 21st Century globally competitive just-in-time economy.

3.02 Governance

“Many forward thinking nations have realized that they cannot make the most of the Information Age with the creaking governmental machinery of the Industrial Age. In this fast moving, fast changing global economy –

when the free flow of dollars and data sustains economic and political strength, and whole new industries are born everyday — governments must be lean, nimble, and creative, or they will surely be left behind”

- Former U.S. VP Al Gore, Government Technology Magazine

“Many forward thinking nations have realized that they cannot make the most of the Information Age with the creaking governmental machinery of the Industrial Age. In this fast moving, fast changing global economy –

when the free flow of dollars and data sustains economic and political strength, and whole new industries are born everyday — governments must be lean, nimble, and creative, or they will surely be left behind”

- Former U.S. VP Al Gore, Government Technology Magazine


SI Perceptions of Local Governance

Local governments largely ineffective; caught up in the day-to-day; not able to be proactive; too many petty battles; bureaucratic mind-set

Politicians in SI and Illinois have no “merit” basis for prioritizing projects

State & Federal grant policies do not encourage us to implement a new economy strategy

Replicating public services every six miles!

Provincialism down to the township level (“it hamstrings us”); territorial thinking

Litigious environment

Things work better in Chicago, Champaign-Urbana or Bloomington — tough to compete against that!

Competing school systems (again: jealousy) — Saline needs a county-wide system


There is a keen awareness throughout SI that something needs to changeThere is a keen awareness throughout SI that something needs to change

3.02 Governance


Overlapping Government Jurisdictions

Multiple and overlapping jurisdictions causes confusion and burden on the business climate

Decision making is bogged down because too many parties are involved Lack of regional collaboration and planning results in multiple, disconnected

strategies with limited funding These numerous bodies also add an administrative cost to conducting business in

the region with no clear benefit

Townships vs. counties — lack of funding for county government; most funding goes to the cities

Even when progressive moves are on the ballot, these are persistently voted down in some areas, including:

911-systems School district levies Zoning and building codes

A deeply rooted fierce independence too often results in myopic and growth-limiting behaviors

Source: RA Interviews and Vital Economy Analysis & Synopsis

3.02 Governance


State as of June 2002

National Ranking

Units of Local Governments

Illinois #1 6,903

Indiana #10 3,085

Wisconsin #11 3.048

Michigan #13 2,805

Iowa #15 1.975

Kentucky #22 1,439

Tennessee #31 930

Pennsylvannia #2 5,031

Texas #3 4,784

California #4 4,409

Units of local government include Counties, Municipalities, townships; School, Fire, Utility, Parks and Recreation Districts; not all units of government are taxing jurisdictions

Source: U.S. Census of Governments, Individual State Descriptions, 2002, Issued July 2005

Illinois: #1 in Units of Government

Negative Impact

• A significant amount of local expenditures are being spread across a small population resulting in a high per-capita cost

• Competition between local taxing agencies for limited funding

• Confusion amongst citizens regarding tax payments, decisions and priorities

• Multiple taxing jurisdictions in sparsely-populated rural areas do not have enough critical mass to adequately finance public services

Negative Impact

• A significant amount of local expenditures are being spread across a small population resulting in a high per-capita cost

• Competition between local taxing agencies for limited funding

• Confusion amongst citizens regarding tax payments, decisions and priorities

• Multiple taxing jurisdictions in sparsely-populated rural areas do not have enough critical mass to adequately finance public services

3.02 Governance


SI County # SI County #

Alexander 74 Perry 18

Edwards 25 Pope 10

Franklin 50 Pulaski 12

Gallatin 25 Randolph 35

Hamilton 24 Saline 39

Hardin 6 Union 21

Jackson 49 Wabash 19

Jefferson 55 Wayne 65

Johnson 16 White 31

Massac 12 Williamson 30

616 Home-County Taxing Jurisdictions in SI

Taxing Jurisdictions:• Illinois has about 4,862

taxing jurisdictions in 102 counties; ≈48 per county

• Indiana has 1,950 taxing jurisdictions across 91 counties; ≈20 per county

• SI is doing a bit better than Illinois in that it is averaging about 32 taxing jurisdictions per county, though still 50% higher than Indiana

Taxing Jurisdictions:• Illinois has about 4,862

taxing jurisdictions in 102 counties; ≈48 per county

• Indiana has 1,950 taxing jurisdictions across 91 counties; ≈20 per county

• SI is doing a bit better than Illinois in that it is averaging about 32 taxing jurisdictions per county, though still 50% higher than Indiana

Source:http://www.revenue.state.il.us/Publications/LocalGovernment/PtaxStat

However, SI has one taxing jurisdiction for every 690 people vs. 2,529 for Illinois — a very

heavy burden on too few people

However, SI has one taxing jurisdiction for every 690 people vs. 2,529 for Illinois — a very

heavy burden on too few people

3.02 Governance


The Heavy Burden of Government in SI

State GDP Government % of GDP

Illinois $590.0B $56.8B 9.6%

Kentucky $146.0B $21.4B 14.7%

Indiana $248.9B $24.4B 9.8%

Missouri $225.9B $26.1B 11.6%

Tennessee $23.0B $25.1B 10.6%

Southern Illinois $17.6B $3.5B 20%*

“Areas with population declines may retain a governmental structure designed for larger populations — as the number of residents declines, there may be no automatic trigger to evaluate the need for the same number of governments or whether other delivery systems might be more appropriate” *

“Areas with population declines may retain a governmental structure designed for larger populations — as the number of residents declines, there may be no automatic trigger to evaluate the need for the same number of governments or whether other delivery systems might be more appropriate” *

SI is in transition and its’ governments have not changed or adjusted to it

*Source: BEA, Rural Research Report; Illinois Institute for Rural Affairs, Spring 1995

IMPLICATIONS:• Way above average % of

public-based wage earnings reduces the climate of risk taking and entrepreneur business growth

• Business retention and attraction is negatively influenced by the # of government entities, resulting in a perception of over-regulation

• Local governments are directed and resourced by Springfield and Washington, DC which reduce the ability for local direction and control

IMPLICATIONS:• Way above average % of

public-based wage earnings reduces the climate of risk taking and entrepreneur business growth

• Business retention and attraction is negatively influenced by the # of government entities, resulting in a perception of over-regulation

• Local governments are directed and resourced by Springfield and Washington, DC which reduce the ability for local direction and control

3.02 Governance


Robust Local Economic DevelopmentResources Are Available

Numerous federal, state, regional and local organizations actively support and promote SI, including (but not limited to)

Coal Belt Champion Community USDA ILDCEO Delta Regional Authority (which includes the states along the Mississippi as far north as IL

and MO) Workforce Investment Areas, Economic Development Regions, and Community College

Districts, and Regional Planning and Development Commissions SIDEZ (the Southernmost Illinois Delta Empowerment Zone) County and Municipal Commissions and Organizations

These (and other) organizations provide primarily grants for projects, data and strategic studies

Many grants are for infrastructure improvements The focus of development has largely been manufacturing investment, even

though it is projected to decline in the region

These agencies recognized that a new organization, Connect SI, was needed totranscend the silo-funding and provide a region-wide comprehensive approach

These agencies recognized that a new organization, Connect SI, was needed totranscend the silo-funding and provide a region-wide comprehensive approach

3.02 Governance


Despite being the 5th largest state, Illinois trails it

neighboring states in number of Top 100 Business Centers**

Despite being the 5th largest state, Illinois trails it

neighboring states in number of Top 100 Business Centers**

Illinois burden of business cost is 20%-60% higher than neighboring states

Number of Centers in:

Illinois Indiana Kentucky Missouri

Top 25 1 7 0 2

Top 50 1 13 4 2

Top 100 4 14 5 5

Population Ranking

5th 14th 25th 17th

Illinois Has a Higher Cost of Doing Business

Source: Forbes Magazine, 2007; and Indiana Economic Development Corporation

Number of Cities in ‘Top Business Centers**’ by State

3.02 Governance

**Forbes relied on economic research firm Economy.com business cost-index-factors in labor, tax, energy and office space costs. For living costs Economy.com weighs housing, transportation, food, and other household expenditures. It also supplied five-year historical figures on job and income growth as well as migration trends. Other data was supplied by Bertrand Sperling, including metro workforce education, presence of four year colleges, quality of life issues, e.g.: crime rates and cultural and recreational opportunities.

©2007 ViTAL Economy, Inc.— 24 —Source: Tax Foundation, October 2006; Index has 113 variables

Illinois Business Tax Climate Ranking: 25th… in the Middle of the Pack

Components of the State Business Tax Climate Index, 2007 - #1 Best, #50 Worst

Overall Corporate Tax Index

Individual Income Tax Index

Sales Tax Index

Unemployment Tax Index

Property Tax Index

Illinois 25th 30th 13th 32nd 36th 40th

3.02 Governance


Illinois Structural Deficit Public services in Illinois, from education to public safety,

are in trouble: The problem is not spending — Illinois is a low spending state

ranking 42nd nationally The trouble is Illinois’ revenue system was developed decades

ago and cannot deal with the costs of funding public services in the 21st century

Illinois has a tax system so antiquated it does not grow with the economy

One of the most unfair systems in the nation, placing a larger tax burden on low and middle-income residents

This means state funding for public services like education and public safety is unable to grow with inflation and is often cut from year-to-year

Source: Center for Tax and Budget Accountability, 2007

3.02 Governance


Illinois Deficit Picture 2008

Illinois’ structural deficit makes it imperative that SI develop a culture of collaborative funding to lessen dependence on State resources

Illinois’ structural deficit makes it imperative that SI develop a culture of collaborative funding to lessen dependence on State resources

3.02 Governance


Legal and Courts System Climate

Illinois ranks 46 of 50; lawyers regard business cases as relatively unreasonable in IL

Indiana, Wisconsin, Iowa all scored in the top 10

Illinois court system is not regarded as friendly to business

Medical malpractice issues have reduced access to medical specialists throughout SI and have discouraged others from providing medical services in SI

Source: Institute for Legal Reform, RA Interviews

State U.S. Rank

Iowa 4th

Indiana 8th

Wisconsin 10th

Kentucky 33rd

Missouri 34th

Illinois 46th

• Workers Compensation rates can be prohibitive• At least 6% of the workforce are repeat abusers versus 2-3% in other parts of the country • SI has doctors who encourage/assist workers in filing false claims taking advantage of the system• Even when we get our rate of incidents down by 50% our claims payouts go up 35% • We have never experienced anything like this anywhere in the U.S.; everyone seems to have a lawyer

- RA Business Leader Interview

• Workers Compensation rates can be prohibitive• At least 6% of the workforce are repeat abusers versus 2-3% in other parts of the country • SI has doctors who encourage/assist workers in filing false claims taking advantage of the system• Even when we get our rate of incidents down by 50% our claims payouts go up 35% • We have never experienced anything like this anywhere in the U.S.; everyone seems to have a lawyer

- RA Business Leader Interview

3.02 Governance


Leadership and Governance

Connect SI participants and over 940 RA interviewees have identified a major barrier to transformation — the lack of broad and deep pools of leadership talent throughout SI communities and organizations

There is a broad based need for leaders with the skills to collaboratively organize, motivate and lead SI to connect the regions assets and achieve sufficient critical mass to compete in the global economy

Systems of governance within/between public, private, not-for-profit, institutional and community development entities cannot be transformed to lead 21st century regional economies without understanding & assessing existing leadership styles, and determining which skill gaps need to be filled to meet new leadership requirements

Following are descriptions of eleven leadership styles needed for a successful transformation of SI and an assessment of the current base of leaders

3.02 Governance


Strong Leaders Ensure Success

Vision Leaders grasp and communicate the value of a shared economic vision to a broad base of community and cluster forces

Innovation Leaders advocate a climate of continuous innovation for each cluster and the overall initiative, as well as the development of entrepreneurial opportunities

Influence Leaders command the respect of diverse interest groups and whose very presence brings others to the table to insure cluster and initiative success

Resource Providers value the vision and provide access to resources that enable the vision to succeed at the initiative and/or cluster level

Research Leaders understand the value of knowledge gathering and knowledge development for the purpose of crafting the basis for out of the box solutions

Cornerstone Leaders are regulatory, government, business, political and community coalition champions critical to broad adoption of the cluster and initiative strategies

Collaborative Leaders understand the economic leverage value of shared resources and shared ideas, and communicate the positive value of such behavior to others

Education Leaders control access to education and training resources and understand the importance of a life long learning resource in support of the initiative

Economic Leaders understand the importance of changed spending behavior in unleashing traditional spending to transforming an economy

Connectivity Leaders control access to public and private connectivity resources and champion their linkage to enable the collaborative development of the local economy

Project Management Leaders are focused on establishing goals and objectives and assuring that cluster-based project initiatives are managed to a successful conclusion and evaluated in terms of intended outcomes

3.02 Governance


Styles of Review Rating Assessment Rationale

Vision Leaders Limited ability to craft and articulate a vision of the future; exception

One Region - One Vision

Innovation Leaders Innovation leaders and entrepreneurs are neither prevalent nor

commonly supported — it is safer in SI to remain under the radar

Influence Leaders A small group of regional influence leaders have committed to lead,

but many are still on the sidelines — even more are needed

Resource Providers CSI has achieved a record level of collaborative resource support

from dozens of organizations — critical mass has not been achieved

Research Leaders Knowledge sharing is very limited across SI. Structural systems are

not in place to enable knowledge sharing — tech transfer is weak

Cornerstone Leaders The foundation of cornerstone leadership has been laid within CSI

Collaborative Leaders There is a limited base of collaborative leaders in place — notable

examples of collaboration, but not broad based

Education Leaders University and college leaders have committed to lead, but limited

participation from K-12 and non-traditional sectors

Economic Leaders The economic leaders are committed to participation, but lack the

training and knowledge and resources to collaborate

Connectivity Leaders Regional network providers have shown a commitment to lead the

development and implementation of a broadband strategy

Project Management Leaders Limited number of experienced individuals and organizations to

collaboratively manage/oversee projects to successful conclusion

Southern Illinois: Leadership Assessment 3.02 Governance


Non-SI Collaborative Governance Examples

On-Line Community Services: Columbia County, Georgia was recognized in 2007 as one of five best practice counties by the Center for Digital Government — has enabled all citizens and businesses to conduct business on-line 24/7 in over 20 service areas (www.columbiacountyga.gov)

Multi-government to Citizen Services: Tasmania creates in one year a 24/7, one stop on-line citizen access to services from 29 local and State government agencies plus healthcare, education & NGO’s across 26,383 sq. miles serving 484,000 citizens (www.service.tas.gov.au)

Performance Benchmarking: BC Progress Board tracks changes in the economic performance and social well-being of British Columbia —benchmarks BC’s performance against other jurisdictions to determine if BC’s competitiveness and quality of life are improving (www.bcprogressboard.com)

K-Infinity Education: North Carolina Information Highway enables universities, colleges, high schools, and workforce development related sites to actively exchange courses across all levels of the educational system without regard to district, institutional or education level boundaries

Data Portals: State of Oregon provides an on-line integrated data portal for every incorporated municipality inclusive of infrastructure status, demographic, social and economic data, climate, community development assets, tax rates, and

more — provides comprehensive community profiles SVETN: Southwest Virginia links 13 rural mountainous counties to create first virtual Governor’s High School, create

on line multi-county and municipal government services network, and just-in-time customized job training for industry directly to plant floor anywhere, anytime

Rural Health Service: 161+ hospital, clinic, lab, therapist, pharmacist, physician, public health district sites collaborate across four counties and multiple municipalities in Western New York to create the first rural health service network — this initiative transformed the economics of healthcare as well as patient outcomes throughout this region

Tourism BC: Rated as one of the world leading destination marketing sites — includes sites for each tourism region; each regional site is programmed for multiple international visitor interests, includes an integrated booking engine used by their website, call center and highway and airport tourism information centers (www.hellocbc.com)

3.02 Governance


Areas of Review Rating Assessment RationaleGovernment

Centers of Excellence

Other U.S. regions are following business practice of outsourcing tax billing; assessments to improve service

24/7 Citizen Access to

Government Services

Citizens no longer have time to stand inline or go from agency to agency — functioning in a 24/7 world

Integrated Multi-level

Government Permit Process

Residents and businesses need a more effective process for permit application, review and approval

Regional Data Sharing The only regional data is through SIU or CEDS. State

data is not very comprehensive or accurate for SI region

Regional Budget &

Tax Sharing System

Few compacts exist for sharing resources across taxing jurisdictions — resulting in thin & duplicated resources

Regional Economic & Community Development Strategies

Connect SI has created the basis for a regional economic and community development strategy

Regional K-Infinity Education Strategy & Resource Sharing

There are distance learning resources in the region, but they are significantly under utilized — turf issues remain

Regional Healthcare

Strategy and Resource Sharing

Connect SI regional Healthcare COI has created regional goals — there are existing healthy community initiatives that cross county borders

Southern Illinois: Governance Assessment 3.02 Governance


Governance: Summary

Disparity between policies that support traditional versus emerging new KBE, innovation economy business, which are the growth engines of 21st Century economies

Most current policies support existing, larger businesses tend not to support emerging innovation businesses

Illinois structural deficit makes it imperative that SI develop a culture of collaborative funding to lessen dependence on Illinois resources while expanding SI resources

Long term solutions to the structural deficit are not in the control of SI

Lack of state agency consistency regarding how economic regions are defined This leads to inconsistent and unreliable data analysis Discourages and complicates a regional sense of identity Makes integrated solution analysis and comprehensive problem solving difficult at best

The leadership gaps are barriers to success unless they are addressed Youth engagement needs to be part of the leadership development effort

Implementation of collaborative initiatives require a variety of leadership skills

Lack of consistent data analysis across agencies Very little data was available to SI or its constituent 20 counties Makes it very difficult to manage or implement a proactive economic strategy There is a real need for a reliable regional data portal accessible to all levels of government

There is no governmental strategy in place to support a 24/7 service reality

3.02 Governance





Taking full advantage of the Globalization and eCommerce trends requires access, adoption and connectivity literacy in the use of broadband throughout SI. The Internet levels the playing field. Without this basic infrastructure and improved literacy, SI will remain sitting on the sidelines of

economic growth and prosperity.


Broadband Connectivity: Overview

The Globalization & eCommerce trends cited in Chapter 1 led to development of Milestone 5 industry sector growth opportunities

COI goals added additional requirements for linking assets across SI for : Tourism Bio-Agriculture Transportation, Logistics & Distribution Global Workforce Opportunities KBE (Advanced Mfg, Creative Arts, Health Products & Services, etc.) Life Sciences — Plant and Animal Energy Mining Technology Senior Living Healthcare Services K-Infinity Education Services

In virtually every sector, broadband infrastructure access and adoption are critical to enabling each of these sectors to be globally competitive


Connect SI and the Network Providers COI have made significant progress capturing demand, and fostering the installation of new broadband systems in several communities

Connect SI and the Network Providers COI have made significant progress capturing demand, and fostering the installation of new broadband systems in several communities


SI Comments re: Connectivity

Connectivity with students for on-line instruction is poor — it limits students ability to take advantage of educational resources in the region

Our business partners don’t even have sufficient digital communication lines to receive distance education to pick up courses for improvement of their workforce

Students are always complaining about off campus access

Most farmers in our county cannot get access to broadband services because we are too remote, but we are still competing in a global economy

We’ve made more progress in 3 hours than we have in ten years of meetings trying to get broadband to our communities

This is one of the best efforts of its kind in the U.S. — Connect SI has formed a collaborative partnership between the network providers and the marketplace

We need Connect SI to help physicians combine our communication needs so that the network providers can see as as a market opportunity



SI Examples of Understanding the Value of a Connected Region

SIU community data portal collaboration between Center for Rural Health and Social Services Development, Paul Simon Public Policy Institute & SIU School of Medicine <www.siumed.edu/medhum/joint%20%20Data%20Project.html>

Carbondale Now-Illinois Area Data Portal <www.carbondalenow.com>

Transitions SI — website for dislocated workers hosted by Man-Tra-Con <www.transitionssi.com>

Access SI — Community Resource Directory for SI — 1,000+ agencies <www.accesssi.org>

Shawnee Hills Wine Trail — links nine award winning wineries in Jackson & Union counties <www.shawneewinetrail.com>

There are connectivity “points-of-light” in SI, but insufficient critical mass of users who understand the value of connectivity

in changing the way SI lives, works, governs and competes

There are connectivity “points-of-light” in SI, but insufficient critical mass of users who understand the value of connectivity

in changing the way SI lives, works, governs and competes



Connectivity Readiness: a Matter of Literacy, Not Just Infrastructure

SI Sectors Needing Connection

Ratings 24/7 Connectivity Application Availability

Tourism Multiple internet portals across SI. No one-stop portal for tourists to learn, plan and book

an SI travel experience

Healthcare Larger healthcare systems are internally connected — smaller systems are not; limited

access for medical professionals across systems; healthcare customer online access is very limited

eCommerce Active e-commerce businesses in SI are in the minority — there are a number of

emerging businesses that are exclusively on-line

eGovernment There are a number of local governments without web sites and/or access via email —

online government services is very limited

K-Infinity The Illinois virtual high school exists as do a number of distance learning resources, but

they are significantly under utilized

Workforce Development Proactive linkage of training resources, employers, job seekers, industry sector

requirements and credentialing are limited

Innovation Assets There are very limited connections between innovation assets across SI — limits

technology transfer and expansion of innovation opportunity

Global Market Access There is limited access to and leverage of global market information or markets

Economic Development On-Line Portal

There is no economic development portal for SI — those economic development websites that do exist are limited in scope and geography

The critical question is: What is the understanding of SIbusiness, government, NGOs & institutions in the use of connectivity

applications to become 24/7 globally competitive resources for SI citizens?

The critical question is: What is the understanding of SIbusiness, government, NGOs & institutions in the use of connectivity

applications to become 24/7 globally competitive resources for SI citizens?



Assessment of SI Addressing Internet Trends in Tourism

Internet-Based Traveler Market Trends SI Score Online travel information across multiple venues &

experiences

Online travel planning tools that aid visitor to map an entire itinerary

Ability to book all aspects of a single trip on-line through a provider website site

Provides a one-stop inter or intra region travel shopping experience

Offers lifestyle travel packages with a value packaging approach

Communicates a quality of brand that can be grasped by visitor

= Correlation is high = Correlation is low


Tourism Industry is an example of SI need for increased understanding and application of connectivity resources


CSI Network Providers COI Accomplishments

Where We Started mid-2006 Where We Are Today

Limited knowledge of network & service availability

• Entire SI region has networks and assets GIS mapped including healthcare, population centers, over 40,000 higher education student and faculty addresses,business, healthcare and citizen broadband service requests

Limited broadband deployment objective & goals

• Ambitious Goals Set: • Increase 1.5 Mb penetration from 12% to 54% by 2012

• Increase broadband coverage from 25% to 85% by 2012

Disaggregated method for people to request service

• Aggregated paper and online method of gathering needed information for service request and sharing with all carriers

www.iwantmybroadband.com

No method of gaining community regional input on where network was needed

• Regional cross-COI meetings held to develop specific priorities for network builds and application requirements

Low connectivity application literacy • PR marketing and education program under development

Small communities of under 600 people were told and believed that they would not get broadband service in the foreseeable

future

• Small towns (150-300 People) delivered broadband service; many other communities received expanded services.

• DSL enabled central offices have increased over 100%

• Wireless broadband underway in almost 20 towns

• Cable based broadband expanding in multiple counties



Coverage & Penetration Success of CSI

In less than 18 months, Connect SI and the Network Provider COI have Increased household penetration by 33% (from 12% to 16%) Increased household coverage by 64% (from 25% to 41%)

During the same period 40 additional central offices have turned-on DSL capability


Over $24M of Network Provider investment was made without any public fundingOver $24M of Network Provider investment was made without any public funding

Connect SI Begins

circa mid-2006 2007 2008 2009 2010 2011 2012Penetration @ 1MB+ for all

Households12% 17% 24% 31% 38% 45% 54%

Household Coverage of Broadband rate @1MB+

25% 35% 45% 55% 65% 75% 85%

2007 # of Households

16% 9,220

41% 31,647 Household Coverage of Broadband rate @1MB+

ACTUAL Net Gains

GOALS as of Each Year End

Penetration @ 1MB+ for all Households


Connect SI Network Provider Collaboration

Illinois CenturyNetwork



Substantial Broadband Backbone Already In Place Across SI

GIS mapping has enabled CSI to identify infrastructure assets to leverage to expand connectivity applications to fuel SI economic expansion

GIS mapping has enabled CSI to identify infrastructure assets to leverage to expand connectivity applications to fuel SI economic expansion



GIS Mapping of SI Broadband Resources3.03 Broadband Connectivity


Backbone Assets Available,But Underutilized

The Illinois Century Network (ICN) has been an outstanding resource for deploying broadband to nonprofit and public entities

Source: Illinois Institute for Rural Affairs, Sharon Shumacher, Spring 2003

ICN is a telecommunications backbone providing high speed access to data,

video, and audio connections in:

Schools and libraries

Colleges and universities

Public libraries and museums

Local government and state agencies

More than 5,500 sites are connected regardless of location using standard

local exchange carrier service (aka local phone companies), cable modem,

wireless and dark fiber optic cable and five different connectivity providers

ICN point-of-presences are connected at a bandwidth OC-3 (135 Mb) with

plans to upgrade to OC-12 and beyond



ICN Enables Network Providers To Extend High-Speed Broadband Backbone into SI

Public Schools 3,671

Other Ed. Facilities 680

Private K-12 287

Community Colleges 117

Colleges/Universities 195

Libraries 470

Museums 28

Healthcare Facilities 55

Government 33

Other 138

TOTAL ICN Sites in IL 5,975

96% of over 625 ICN Clients in SI are connected at a T-1 speed or greater96% of over 625 ICN Clients in SI are connected at a T-1 speed or greater



Broadband Connectivity: VE Assessment

SI Readiness to Respond to Global Best Practice Requirements to Enable an Economic Region to

Compete in a A 24/7 World Economy

Household Broadband Network Coverage - Access

Household Penetration - Take Rate

Enterprise Broad Band Network Coverage - Access

Enterprise Penetration – Take Rate

Network Provider Responsiveness & Collaboration

Digital Literacy:

(Internet, Computer, Applications, Use)

Household

Enterprise – Includes Businesses Institutions

Local Government

WEAK

IMPROVING

GOOD

AVERAGE

STRONG



Broadband Connectivity: Implications

Household Broadband Network Coverage & Penetration Rate Coverage and penetration rates need to continue to expand to meet world class goals Goal achievement will be critical to enabling a 24/7 globally competitive workforce

Enterprise Broadband Network Coverage & Penetration Broadband access and use is largely in the Route 13 and I-57 corridors Healthcare coverage is in the process of being expanded on a number of fronts

Network Provider Responsiveness & Collaboration Over 30 network providers are collaborating across SI — a record achievement in Illinois Providers are sharing leads and have committed to meet market demand requirements

Household Digital Literacy This must dramatically improve especially among adult leaders or SI growth strategy will fail

Enterprise Digital Literacy Level of literacy is limited — there is a need for expansion of understanding of the role of

connectivity in linking remote assets, achieving improved productivity & accessing larger markets

Local Government Digital Literacy Most local governments have not adapted their services to a 24/7 flat world reality Too many elected officials pride themselves on not being digitally connected KBE work and workers as well as young adults will be put off by digitally illiterate governments






One of the most important enablers in a prosperous & growing community is livability — from infrastructure, to community & natural amenities, to visual appeal & attractiveness, to accessing

good schools, recreation, healthcare, arts & culture.


Livable Communities Intro

Livable communities all across America are increasingly popular places in which to live, work, vacation and retire

In the 1990s, 2 million more Americans moved from metropolitan centers to rural areas than migrated the other way — communities with natural beauty and a high quality of life are magnets for businesses, working families and retirees

The vast majority of residents, new and old, feel a strong attachment to the landscape and the character of their town — want a healthy economy, but not at the expense of their natural surroundings or community character

Elected officials and residents want to find ways to preserve what they love about their communities without saying no to jobs and economic development

Across America, there are communities that have found that economic prosperity does not demand degraded surroundings, loss of community character or becoming a congested tourist trap

Successful communities are finding that the opposite is true — beauty pays, sustainable tourism provides more benefits than mass-market tourism, retaining community character is a key to economic success, and thoughtful management of public resources and well-planned development can help prosperity occur

Source: National Geographic Center for Sustainable Destinations, Urban Land Institute and The Conservation Fund Survey



AIA Ten Principles for Livable Communities(1 of 2)

1. Design on a Human Scale• Compact, pedestrian-friendly communities allow residents to walk to shops,

services, cultural resources and jobs while reducing traffic congestion and improving peoples health

2. Provide Choices• People want variety in housing, shopping, recreation, transportation & employment

variety creates lively neighborhoods and accommodates residents in different stages of their lives

3. Encourage Mixed Use Development• Integrating different land uses and varied building types creates vibrant pedestrian

friendly and diverse communities

4. Preserve Town Centers• Restoring, revitalizing and infilling town centers takes advantage of existing streets,

services and buildings and avoids the need for new infrastructure — helps curb sprawl and promote stability for neighborhoods and towns

5. Varied Transportation Options• Giving people the option of walking, biking and using public transit, in addition to

driving, reduces traffic congestion, protects the environment and encourages physical activity

Source: AIA The American Institute of Architects: Communities by Design



AIA Ten Principles for Livable Communities(2 of 2)

6. Build Vibrant Public Places• Citizens need welcoming, well-defined public spaces to stimulate face-to-face

interaction, collectively celebrate and mourn, encourage civic participation, admire public art. and gather for pubic events

7. Create a neighborhood Identity• A “sense of place” gives neighborhoods and towns a unique character — it

enhances the walking environment and creates pride in community

8. Protect Environmental Resources• A well-designed balance of nature and development preserves natural systems,

protects waterways from pollution, reduces air pollution and protects property values

9. Conserve Landscapes• Open space, farms, and wildlife habitat are essential for environmental, recreational

and cultural reasons

10. Design matters• Design excellence is the foundation of successful and healthy communities

Source: AIA The American Institute of Architects: Communities by Design



How Rural Places Achieve Economic Prosperity as Livable Communities

They focus on retaining their scenic beauty, small town values, historic character and sense of community

They actively involve a broad cross-section of residents in determining and planning their future

They capitalize on their distinctive assets -- their architecture, history and natural surroundings rather than trying to adopt a new identity

The most successful places regularly take these actions: Develop a widely shared vision Create an inventory of local resources Build on local assets Meet the needs of both landowner and community Team up with public managers Recognize the role of non-governmental organizations Provide opportunities for leaders to step forward Pay attention to aesthetics

Source: Balancing Nature and Commerce in Gateway Communities-Island Press-Jim Howe, Ed McMahon and Luther Propst



Livable Community Benefits

Economic Benefits Invites local spending Attracts tourists Attracts investment Attracts workers Attracts businesses Property values increase Reduced travel costs

Environmental Benefits Balanced transportation Less miles driven Reduced air pollution Compact land development Less habitat fragmentation Less impact to fragile areas Less runoff-reduced water pollution

Source: Our Built & Natural Environments, EPA Jan 2001, Centers for Disease Control, www,activeliving.org

Health Benefits Cleaner air

More people walk and bike

Activity reduces health risks

Obesity reduced

Attracts businesses

More sustainable environment

Social Capital Benefits More places to socialize

Increased personal interactions

Social network expands

Creative networks expand

Innovation exchange increases

Becomes a people destination



What SI Folks Are Saying (1 of 2)

Once we get people here, we can’t get them to leave; they love the way of life

Peaceful, quiet and lots of stars in the sky

No traffic congestion — it only takes a minute or so to go a mile here in SI;

compare that to Chicago!

SI quality of life is a major benefit — 80-85% of our workers are outdoorsmen

and enjoy fishing and hunting

I moved here from Southern California, there’s a lot of potential here, but locals

do not realize what they have

Lakes are a draw, state parks are fabulous; we have operation managers from

California that think SI is one of the finest outdoor recreation areas in the U.S.

Serenity, fields, hills, trees, lots of space

We have lots of unique small towns; we should be focusing on what the high

points are of each town and communicating this across and beyond SI to

build pride and opportunity




What SI Folks Are Saying (2 of 2)

We need to deal with the down-and-out look of SI; healthcare professionals who like the practice opportunity in SI have been astounded at how little respect SI-

citizens have for the way it looks

We would have a more attractive community if our politicians would stop focusing on the next election and start looking towards the next generation

Just look at how we take care of our own community; others would be embarrassed with the way some of our region looks — always disturbed me

that we live in paradise, yet why do so many of us hate being here?

We should be proud of where we live; where we live is a tremendous asset; we should have more pride in the appearance of our communities; there is a

culture of low expectation that is pervasive; we need to set higher standards

We loose trained professionals due to limited activities for creative lifestyle folks; leaders don’t understand what KBE-workers are or want for their families

SI is a gateway to the Garden of the Gods — why do we offer visitors a view of poverty and devastation




State & SI Uniform Building Code Issues (1 of 2)

Illinois has no uniform, comprehensive building code that is enforced statewide • Illinois has over 250 separate laws and administrative rules that control certain aspects

of design and construction• It lacks a single code that contains or references all of the guidelines and standards • Most other parts of the country use a single code to help ensure the construction of safe and

healthy buildings • Today, there are two organizations in the U.S. that publish model building codes in each

of the 13 categories recognized by the construction industry• These organizations actually compile, incorporate and reference standards and other

construction-related documents issued by a great number of industry organizations, independent testing laboratories and federal agencies

• The first, formed in 1994, is the International Code Council, or ICC• This second organization is the National Fire Protection Association, or NFPA

• Illinois is one of four states left that has not adopted a statewide building code• It has adopted some statewide codes that affect specific areas of design and construction• But, unlike most states, has no uniform, comprehensive family of codes• Generally, zoning ordinances are a companion to the adoption of construction codes

This lack of building codes and zoning is NOT a strength for economic attraction; it is an economic liability for both housing & business development

This lack of building codes and zoning is NOT a strength for economic attraction; it is an economic liability for both housing & business development

Source: International Code Council; interview with Illinois Building Commission



State & SI Uniform Building Code Issues (2 of 2)

What options are there for Illinois and the SI counties?

• First Option: Illinois would take complete charge of the building code systemo Centralizing and unifying the processes, interpretations, and rulings concerning a uniform,

comprehensive, statewide codeo Creating a “one-stop shop” for the municipalities, general public, product manufacturers and

design & construction industrieso The “fierce independence” culture of SI would make this option very difficult to implement and

even harder to enforce

• Second Option: “Shared control” of the building code between Illinois and local governments

o All large municipalities already have adopted a building code, and many have the administrative structure in place to handle permitting, plan review, inspections, enforcement, variances and appeals

o Most of these local governments currently leave the technical updates of codes to the model code writing organizations

o Makes more sense for SI to piggy-back on this time-tested code — but will still require local support to implement

• Third Option: Legislation that grants exclusive control of a uniform, comprehensive code to local governments

o Unfortunately this leaves the impetus in the hands of local folks — therefore requiring a significant effort to create value & support for setting up code


Source: International Code Council; interview with Illinois Building Commission


Access Criteria Rating Assessment Rationale

Transportation Options

• The region has complete package of above average transportation access and infrastructure, including interstate highways, railways, airports and waterways — outside of GE, however, public transportation is limited

Healthy Town Centers

• Overall SI downtowns are deteriorating — models for success exist in SI: SIU School of Architecture provides opportunities for SI to increase these models of success

Vibrant Public Places

• Opportunities for vibrant public gathering places exist throughout SI — strategies need to be developed to leverage these locations

Sense of Place• SI citizens have a narrow belief of the special place and

environment in which they live — a regional branding strategy could help define this sense of place

Balance of Nature and Development

• With only 3% of its total land area built up, SI could become a premium livable community (e.g., double its development), and still easily retain its rural setting beauty

Open Space• The region possesses a vast amount of open space, which meet

the criteria for an attractive livable community

Livable Community: Assessment (1 of 2)3.04 Livable Communities

©2007 ViTAL Economy, Inc.— 60 —— 60 —


Livable Community Literacy

• The region has a weak understanding of Livable Community characteristics — CSI can lead initiatives to educate and implement key guidelines

Community Codes, Zoning and Planning Systems

• The region is substantially behind in community planning — SI will need to enact regional planning to prepare for KBE growth

Life Long Learning Access

• SI is blessed with robust educational resources — the region has an opportunity to leverage these resources to attract and build KBE and senior living markets

Housing Options

• SI has an aged housing stock — new housing developments are underway; diversity of housing options needs improvement; best practice planning & design standards need to be the basis of strategy

Creative Class Social Networks

• The Creative Class is primarily underground in SI, but is growing — a proactive strategy for leveraging and connecting existing higher-ed creative assets is critical

Livable Choices• The region has a narrow offering of livability infrastructure assets

but has robust natural and environment assets

Livable Community: Assessment (2 of 2)3.04 Livable Communities


Livable Communities: Summary

Planning and zoning is almost non-existent across the region. There seems to be a certain pride in having no regulation High value growth businesses want the certainty of planning, zoning & code enforcement Lack of such tools leads to external view of SI as low value instead of high value

A broad cross section of citizens are not in place to support the development of livable communities

Examples of livable communities exist in the region, but there are not livable communities strategies in place

Distinctive assets of architecture, history, natural surrounds and arts and culture are in abundance — they remain unconnected and not leveraged

Livable community literacy is weak and almost non-existent including the understanding of the benefit and attraction of high-wage jobs

SI is largely a car friendly economy — public transportation is limited and workability at the town level is not recognized


With only 3% of its total land area built up, SI could become a premium Livable Community (e.g., double it’s development), and still easily retain its rural setting beauty

With only 3% of its total land area built up, SI could become a premium Livable Community (e.g., double it’s development), and still easily retain its rural setting beauty





One of the most fundamental keys to SI’s growth and prosperity is being adaptable to change — being willing to change, as well as being flexible and proactive. The pace of change is

accelerating due to globalization and the ten flatteners (Chapter 1). There is an old expression: “even if you’re on the right track, you’ll get run over if you just sit there”.


The Past is our foundation, but it need not determine our Future!- VE Team

“The definition of insanity is doing the same thing over and over each time expecting different results”

- Ben Franklin, Albert Einstein & W. Edwards Deming

“The definition of insanity is doing the same thing over and over each time expecting different results”

- Ben Franklin, Albert Einstein & W. Edwards Deming

Adaptability to Change is Essential

“It's not the strongest nor most intelligent of the species that survive; it is the one most adaptable to change”

- Charles Darwin

“It's not the strongest nor most intelligent of the species that survive; it is the one most adaptable to change”

- Charles Darwin


““When the rate of change outside the organization is greater than When the rate of change outside the organization is greater than the rate of change inside the organization, the organization is in trouble”the rate of change inside the organization, the organization is in trouble”

- Jack Welch, CEO GE- Jack Welch, CEO GE

““When the rate of change outside the organization is greater than When the rate of change outside the organization is greater than the rate of change inside the organization, the organization is in trouble”the rate of change inside the organization, the organization is in trouble”

- Jack Welch, CEO GE- Jack Welch, CEO GE


Adaptability to Change: Perspective Adaptability to change in Southern Illinois is the number one prerequisite for success

— transforming your economy & your community CANNOT happen without proactively embracing change as a new way of life

It is also important to realize that: Organizations don’t change — it’s individual leaders and employees who change Communities don’t change — it’s individual leaders and residents who change There is no short cut — one-by-one, each person decides whether the change is good for them;

this takes time, focused effort and proof that the change is worthwhile Not everyone needs to embrace or accept the change for it to occur

When 1-to-2% of individuals in a particular group become believers and doers, the change becomes a real possibility — SI is currently at about 0.4%

Critical mass is reached when 16-18% become believers & doers — it’s at this point when the change will succeed and endure

Each individual must want the change more than the status-quo — which takes a combination of a compelling sense of urgency and a compelling sense of opportunity to provide sufficient motivating force to overcome resistance to change

To reach this shift takes a clear vision of what the change will look and feel like, why it’s important (motivating forces at both the micro and macro levels), and how to make it happen (i.e., tools, capability, resources)

The ViTAL Economy approach provides the tools and process for this to occur on an ever increasing scale —the following slides highlight where SI is today and what needs to change


Source: Leading Change, Overcoming Chaos, Michael Heifetz 1993; The Tipping Point, Malcolm Gladwell. 2000


What SI Citizens Have to Say About Change

I see our quality of life disappearing because we aren’t willing to change — it is hard to consider a global picture, when we can’t get along town to town

To get anything done in economic development, you have to be willing to fight the internal battles at the State level, step on toes, and run the risk later of being

penalized — no one is willing to put their job at risk to accomplish the greater good

It is all about power and who controls what — we have to change this or find a whole new way to work together

The State just gets in the way; they are clueless, disorganized, slow to respond or obstructionist — nothing seems to change

We would love to be involved with Connect SI to help define the future we want to have, however, don’t ask us to get involved in extended processes. Give us a task; pull the

right people together to get it done. People need to be recognized; give us an opportunity to shine by doing something that really has impact — make SI a

prestigious place to be

75% of the local residents would like something to change in the community, but they would like someone else to do it




Where is SI Today and Where It Needs to Go

The following two slides capture what we call “SI’s Big Dilemma”:

Current State = A Climate of Limited Opportunity Desired Future State = A Climate of Unlimited Opportunity

The remaining slides in §3.05 provide: An assessment of SI’s progress vs. the Eight Steps to Managing

Change What changing SI’s thinking means What needs to change to get to your desired future state Applying the principles of “The Starfish and the Spider” Summary: fertile ground for change



• 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


• 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 SI and 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


Eight Steps for Managing Change and Eight Steps for Managing Change and Transforming Your OrganizationTransforming Your Organization

1. Establish a Sense of Urgency — builds the motivating force necessary to make the change worthwhile for each individual and the community as a whole

2. Form Powerful Guiding Coalitions — provides the necessary leadership to bring disparate groups together and foster collaboration across boundaries

3. Create a Vision — aligns leaders and participants to common goals and a compelling view of the future

4. Communicate the Vision — builds understanding & participation; the bigger the network, the more collaboration can occur, the more powerful the change

5. Empower Others to Act on the Vision — proves to the community-at-large that the decision-making hierarchy and concentrated power base of the past is changing

6. Plan for, Create & Communicate Short Term Wins —demonstrates that real change is occurring and helps those from Missouri (“show me”) to get on board

7. Consolidate Improvements & Produce More Change —builds momentum, making it easier for those on the sidelines to “take the risk” in joining the effort

8. Institutionalize New Approaches — provides the foundation for repeatability as more and more leaders and potential participants emerge




Establish a Sense of Urgency• COI’s have identified a compelling sense of urgency specific

to their sub-region; these need to be more widely reinforced

Form Powerful Guiding Coalitions• Each of the six COI’s has a functioning leadership team,

however this number needs to grow substantially

Create a Vision• 3 of the 4 COI’s did “visioning” as part of the Milestone 4

process; these also need to be more widely reinforced

Communicate the Vision• These visions need to be encapsulated and shared with a

increasingly larger numbers of region citizens

Empower Others to Act on the Vision

• Most COI subteams worked well together; CSI & COI leaders have not effectively expanded the base of champions beyond a core group — more are needed to reach the Tipping Point

Plan for, Create & Communicate Short Term Wins

• Many short-term wins have been identified; these need to be implemented and celebrated across SI

Consolidate Improvements & Produce More Change

• Decision making structures across SI have not been modified based on use of collaborative processes.Leadership is beginning to revert back to old and familiar command & control formulas

Institutionalize New Approaches• The Crossing Boundaries Institute and other Phase 2

activities will help spread the effort toward critical mass

Eight Steps to Managing Change: Assessment



What Changing SI’s Thinking Means

FROM: Too many past economic efforts

that fizzled out Trading dollars and fighting over

the same customers Viewing the adjacent towns as

competitors Lack of awareness regarding

regional assets or leverage opportunities

Continually waiting for the ‘cavalry’ to arrive and rescue us

Distrust and cynicism — it’s just a win-lose game

Widespread feelings of apathy & powerlessness

TO: Real economic growth tracked by

tangible metrics Creating whole new markets and

customer bases — globally Collaborating across the whole

20 county region Valuing of what makes SI unique &

how to leverage this Connecting resources and rescuing

ourselves from the ground up Growing trust and realizing true

synergy Widespread feelings of success

and even greater potential

“The pie is not growing” “We can & must grow the pie”

Collaboration builds critical mass and creates a climate of unlimited economic opportunity! Collaboration builds critical mass and creates a climate of unlimited economic opportunity!



What Needs to Change?

In order for SI to create a true Climate of Opportunity, several shifts have to occur:

From deeply held beliefs that you cannot change the circumstances of your economy or community to a new deeply held belief that we can change by leveraging the unique value and self-worth of everyone in SI

From multiple, separate, town-based, silo structures & territorial thinking to regional connected structures that cluster across the value chain

From concentrated power & the limiting behaviors of the past to ‘flat-world’ behaviors of collaboration, flexibility, 24/7, rapid actions, nimbleness and trust

For Connect SI this translates into three immediate and high priorities:

Expand the leadership base of believers & doers one-by-one Expand the base of collaborative funding Communicate, communicate, communicate the sense of urgency, vision,

short-term wins, what needs to change, this RA and your strategy



Applying the Principles of “The Starfish and the Spider”

This insightful book provides ten rules for moving from a Spider organization (aka centralized power and hierarchical structure) to a Starfish organization (aka decentralized, amorphous, virtual network of collaborators)

1. Diseconomies of Scale — being small can be better due to nimbleness2. The Network Effect — overall value of the network increases with each added member3. The Power of Chaos — stimulates creativity and freedom of choice4. Knowledge at the Edge — the ‘front-line’ in the rank & file of an organization has the best

understanding of the challenges it faces5. Everyone Wants to Contribute — give folks the freedom to contribute and they will (e.g.,

Wikipedia)6. Beware the Hydra Response — Starfish organizations are not easy to ‘kill’; they keep

replicating themselves and spreading7. Catalysts Rule — they inspire people to action, and leave before power gets centralized

around them8. The Values are the Organization — take away a Starfish’s ideology and the organization

will crumble9. Measure, Monitor and Manage — done by a catalyst: a combination of architect, cheer-

leader and awe-struck observer; it’s better to be vaguely right than precisely wrong10. Flatten or be Flattened — if you can’t beat them, join them; what looks like entropy at

first, turns out to be one of the most powerful forces the world has seen Starfish organizations are a key strategy SI can deploy to leverage its unique assets

across the region — see Chap 4 for a Starfish-based Innovation Eco-System and Comprehensive Connect SI Community & Economic Development Strategy for more detailed recommendations (to be posted in Feb 2008)


Source: Starfish and the Spider, Brafman & Beckstrom 2006


Summary: Fertile Ground to Change

Citizens across SI do see the stark reality and understand what needs to change

The good news: Awareness of this reality goes far and wide Folks, young and old, want SI as a region to finally deal with this

The bad news: There is a deeply held belief that neither individuals, nor SI as a whole, will change Far too many lifelong SI residents have become numb to the decades of gradual

decline in so many communities SI is at a crossroads — and there are reasons for hope:

The concept of One Region-One Vision is gaining traction There are pockets of prosperity — so it can be done Short-term wins across SI are providing further “proof” that the collaborative

approach works — building momentum is key Remember Pogo: “We’ve met the enemy and he is us!” The TIME is now; the CHOICE is yours — all it takes is will and leadership

If you’re going to have a self-fulfilling prophecy, let’s make it a great one!If you’re going to have a self-fulfilling prophecy, let’s make it a great one!




3.06 Implications & Recommendations



Enabling Environment by Sector (1 of 3)

Attributes in Place for Success

Roadblocks in the Way of Progress

Global Workforce Opportunities

A robust inventory of education and workforce development programs and facilities

Central North American location A history and connections to oversees

students, governments, educational institutions and businesses

No comprehensive strategy and funding system linking K-12, college and University programs to a measurable goal

Weak linkage and collaboration between business and education

Limited 24/7 availability of continuing education programs at graduate level

KBE Employment and Businesses

Natural amenities and location advantages support KBE firms & workers

A major research University within region with tech-transfer opportunities

Affordable cost of living

Non-existent reputation of SI as a knowledge-based economy

State economic development programs focusing on traditional businesses

No community development standards that result in lack of predictability

Senior Living Lower cost of living supported by a mild climate, lots of active recreation options

Multiple life long learning assets Growing cultural and unique events in the

region Improved network of healthcare assets

Reputation of limited access and quality of healthcare

Low property curb appeal and quality of public spaces

Narrow understanding of senior living trends and impacts






Energy and Mining One of the largest reserves of coal resource in North America

An expansive knowledge base and research regarding energy, coal mining and oil extraction

Significant state and national attention and resources targeting alternative uses for traditional energy

Lack of a clear strategic direction with a defined benefit to industry

Economic development approaches are focusing on extraction with limited attention to KBE possibilities

The energy industry have faced multiple and complex challenges over the past few decades that have created more competition and less collaboration

Tourism Multiple unique natural tourism attractions

A robust collection of historical locations and knowledge

Examples of successful tourism collaborations in the region; Wine Trail

Financial resource generators are in place to support a region-wide effort

Location & climate advantages

Lack of regional tourism coordination and trust reduces the regions ability to attract attention

Policies and funding systems support a traditional territorial approach to tourism organizations which creates a climate of competition rather than leverage

Lack of balanced and modern tourism infrastructure around the region






Transportation, Logistics and Warehousing

Geographic location, with multiple highway, rail, marine and air transportation assets

A significant industry base and critical mass exist to build upon

Inland waterway trends are positive

Projects and infrastructure expansions have been done independently without connection to other assets

Lack of comprehensive planning Disaggregated workforce and labor issues

Climate of Economic

Opportunity

Connect SI as a framework for a new economic direction and strategy for the region

Creating region-wide collaboration Articulating the vision of the future Development of a strategy and

measuring progress and impact Prioritizing application of resources in

the optimum manner Tracking and informing the region of

national and global trends Identifying and applying the best

resource for a favorable impact

Belief that economic pie of opportunity is very limited. If we share we lose.

Some would rather be in control of a smaller economy rather than share control in a larger economy

Public policies have not shifted to meet the needs of a changed economy

Multiple governmental jurisdictions hinder the regions ability to collaborate



Enabling Environment Implications

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 Illinois’ court system is rated as unreasonable to business Multiple government and taxing districts cause a confusing business environment

Telecommunications expansion is a marketable opportunity The recent expansion of broadband service, supported by a clearly defined goal is

positioning SI for KBE growth and attraction SI’s natural environment is not valued or leveraged by a sufficient number of

its citizens or leaders The region has the largest concentration of natural environment assets in the Mid-

west, but is not returning its share of benefit 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



Enabling Environment: Recommendations

Improving the enabling environment is the key to addressing SI’s Big 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 — Incorporate collaborative funding as a fundamental part of the DNA of SI

#2 — Create a Crossing Boundaries Institute linked into existing leadership programs

#3 — Implement a regional multi-media branding strategy for internal and external markets

#4 — Implement a Youth Engagement Strategy

#5 — Implement broadband connectivity infrastructure and digital literacy strategy

#6 — Establish a Comprehensive SI Data Mining Portal that is a model for Illinois

#7 — Develop an SI livable community forum

See Chapter 7 for more detailed recommendations

The successful transformation of SI from a limited to an unlimited growth economy depends upon the ability of the Region to change it’s thinking & behaviors

The successful transformation of SI from a limited to an unlimited growth economy depends upon the ability of the Region to change it’s thinking & behaviors


©2007 vital economy, inc. 1 southern illinois: garden of the gods readiness assessment chapter 3:...

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