©2008 vital economy, inc. — 1 — southern illinois: garden of the gods coi briefing: 2008-2012...

©2008 ViTAL Economy, Inc. — 1 —

Southern Illinois: Garden of the Gods

COI Briefing:2008-2012 Strategic Roadmap

February 19-20, 2008

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


Connect SI: Living the Credo ofMeasurable Outcomes

18 Months of Accomplishments: Aggregating demand with <Iwantmybroadband.com>; many towns and local areas

getting 1st time broadband coverage — after years of being told “it can’t be done” $24 million+ in private sector network provider investments to expand broadband access

into SI communities — resulted in a 41% increase in household coverage of broadband across SI

Attraction of a new out-of-state network provider to SI, which became aware of the work of Connect SI and saw an opportunity to connect the most rural of rural America — towns in at least 2 or 3 COI's are already installed and running

Connect SI awareness building connectivity’s role has caused most newly-connected communities accessing broadband at an initial rate of 40%-60% — double prior take-rates

Utilizing 1st community-based Economic Scenario Model and GIS mapping to create a competitive advantage in company recruitment

Chosen by DCEO as one of two state teams at the Dec ‘07 DOL Driving Transformation conference in Chicago — high visibility

Awarded Governor's Sub-Cabinet Grant: Healthy SI — planning $200k, web-based collaborative tools, Energy Symposiums (3rd this week), first on-line Nursing program

Is SI worth fighting for?Is SI worth fighting for?


Connect SI: Living the Credo ofMeasurable Outcomes

Phase 1: five Milestones, lots of planning in all six COIs is now complete

Phase 2: starts with our strategy and moves into implementation

We are at a crossroads — when all those seeds of ideas begin to germinate and grow

Big Win: We now have a viable long-term strategy to transform our economy!

Phase 1: five Milestones, lots of planning in all six COIs is now complete

Phase 2: starts with our strategy and moves into implementation

We are at a crossroads — when all those seeds of ideas begin to germinate and grow

Big Win: We now have a viable long-term strategy to transform our economy!

18 Months of Accomplishments, cont’d: Applied for DOL Community Based Job Training Grant to address the nursing shortage

across SI — five community colleges collaborated (SICCM) Generated high level of interest with NIU to connect medical facilities in SI — potentially

part of a $21M FCC program

Awarded $250k Regional Innovation Grant from DOL — funding Employer Retention

Survey, purchase of GIS mapping software, and startup of a Transportation, Distribution,

and Logistics industry cluster (linked to Cairo Intermodal study)

Chosen as one of two Illinois WIRED proposals to DOL — due to strong collaborative

effort

Completed RFQ for Route 13 medical offices

Received $20k AT&T Foundation grant



Today’s Briefing

How We Got Here — 18 Months of Hard Work (all 6 COIs) Goals, Assets, Trends, Opportunities SI’s Big Dilemma: Climate of Limited Opportunity

Where We Must Go Vision/Goals/Strategies

Transform SI Mindset and Behavior Transform the SI Enabling Environment Transform SI Economic Performance Transform SI Leadership & Governance Frameworks

What’s It Worth SI’s Potential: Climate of Unlimited Opportunity Transforming SI: ROI CSI: Vision of the Future



COI Perspective: Southern Five

Challenges:• Lack of skilled workforce for

current and future jobs • Lack of cooperation,

collaboration, and regionalism

• Does the region have the assets to grow and retain tech based jobs?

• No sense of urgency• K-12 performance

Opportunities:• Geography, logistics and

transportation • Community College System

and SIU• Local healthcare availability• Tourism, bed & breakfast,

Shawnee National Forest, historical assets, wineries

• Agribusiness opportunities (e.g., ethanol)

Sense of Urgency•Changing our mindset — how we view poverty!

•Stop the bleeding — put a triage process in place for the economy, now!

•How will your children grow up and where will they go?

Sense of Urgency•Changing our mindset — how we view poverty!

•Stop the bleeding — put a triage process in place for the economy, now!

•How will your children grow up and where will they go?

S5 COI 2012 Goals

$90.3 M in New Wages

784 New Jobs @$43,500

4,863 Existing JobsRaised by $5,000/Year

522 jobs at New Average Wage $36,517

Increase Youth Retention:6.9% to 7.2% (15-19yrs)

18.7% to 21.5% (20-34yrs)

Reduce PovertyFrom 14.5% to 12.5%

S5 COI 2012 Goals

$90.3 M in New Wages

784 New Jobs @$43,500


522 jobs at New Average Wage $36,517

Increase Youth Retention:6.9% to 7.2% (15-19yrs)

18.7% to 21.5% (20-34yrs)

Reduce PovertyFrom 14.5% to 12.5%

Regional Economic Benchmarks

2004 2012

Population 58,664 63,000

Total Employed 24,317 26,856

Average Wage $27,959 $37,591

Total Wages $679.9M $1.01B

See: RA Chapter 6



COI Perspective: Southeastern

Sense of Urgency• We MUST stop the decline, we are

asleep at the wheel.

• Shock Value: “If you are going to be poor, this is the place to be!”

• What is our legacy going to be for our children? There is declining infrastructure, tax base declining, demographics getting worse

• WHAT CAN BE? We need to paint a compelling picture of the future

Sense of Urgency• We MUST stop the decline, we are

asleep at the wheel.

• Shock Value: “If you are going to be poor, this is the place to be!”

• What is our legacy going to be for our children? There is declining infrastructure, tax base declining, demographics getting worse

• WHAT CAN BE? We need to paint a compelling picture of the future

Challenges:• Get local gov’t officials involved • Reverse population decline• Increase tax revenue base• Increase average wage• Change age demographic• Increase incentives for broadband

penetration in the rural areas• Low awareness of ICT benefits• Create a more diversified economy• Overcome apathetic attitudes• Limited affordable housing

Opportunities:• Get county boards & city councils

engaged• Show local stakeholders that they

have a “VOICE”!• Further enhance working

relationships with other communities

• Become a positive place to live, work and play

• Promote area as an affordable place to live

• Challenge negative thinking• Promote and develop self-reliance

in our community• Foster entrepreneurship


2004 2012



Average Wage 27,494 40,276

Total Wages $602.2M $1,027B

SE COI2007-2012 Goals

2,158 New Jobs @$43,500


1,438 jobs at the new average wage

$40,276

34% Private Payer Healthcare %

$500M EAV Tax Base

Broadband Penetration Rate – 50%

$44,420,000 Tourism Expenditures

$180,000 Regional Room Tax Revenues

SE COI2007-2012 Goals

2,158 New Jobs @$43,500



$40,276

34% Private Payer Healthcare %

$500M EAV Tax Base

Broadband Penetration Rate – 50%

$44,420,000 Tourism Expenditures

$180,000 Regional Room Tax Revenues

See: RA Chapter 6



COI Perspective: Greater Wabash

Sense of Urgency• Population decline — educate them but

they leave• More jobs outside of the area• Lost appreciation of the area• Rekindling the romance for the area:

o The Beauty of the place that we liveo Our quality of lifeo The positive attitude of the area

• “Live, Work, Play and Stay in Southern Illinois” — and create excellence generation to generation

• Prosper in spite of Springfield!• Stop the population drain — what we can

do now!

Sense of Urgency• Population decline — educate them but

they leave• More jobs outside of the area• Lost appreciation of the area• Rekindling the romance for the area:

o The Beauty of the place that we liveo Our quality of lifeo The positive attitude of the area

• “Live, Work, Play and Stay in Southern Illinois” — and create excellence generation to generation

• Prosper in spite of Springfield!• Stop the population drain — what we can

do now!

Challenges:• Spirit of poverty!• Youth brain drain• Need to change our attitude• No collaboration between risk

takers• Lack of discussion due to

territorial battles• Lack of appreciation of

business by public officials

Opportunities:• Take control of our own destiny• Tap our youth — get them

engaged in this process• Publicize our great assets —

what makes us unique• Tie colleges to skill needs;

educate our parents! • Leverage our renewable

resources in this area; not just raw exports — invest in non-renewable as well

• Fill key gaps (e.g., need Pediatrics, Obstetrics); lots of ripple effects

GW COI2007-2012 Goals

1,381 New Jobs @$43,500


920 jobs at the new average wage

$36,517

$36,406 Per Capital Income

GW COI2007-2012 Goals

1,381 New Jobs @$43,500


920 jobs at the new average wage

$36,517

$36,406 Per Capital Income


2004 2012



Average Wage $26,311 $36,517

Total Wages $694.6M $1.013B

See: RA Chapter 6



COI Perspective: Greater Egypt

Challenges:• Culture of poverty• Increase average wage• Reverse population decline• Youth brain drain• 2000 recent dislocated workers• Lack of quality and

commitment of leadership• Weak region wide

communication• Limited access to public and

private capital

Opportunities:• Highly educated population• Technology transfer from

educational facilities• Quality of place• Energy sector: coal, alternative

fuels, etc.• Value-added agriculture• Foreign student population• Workforce Development

•Man-Tra-Con•SIU & Community Colleges•State and Federal programs

Sense of Urgency•We have got to break the cycle of hopelessness!

•Don’t tell me what we can’t do – tell me what WE CAN do!

Sense of Urgency•We have got to break the cycle of hopelessness!

•Don’t tell me what we can’t do – tell me what WE CAN do!

GE COI2007-2012 Goals

10,468 New Jobs @$43,500



$40,765

Educational Degree Attainment

High School 85.3%Bachelor 25.2%

17.1% Youth Retention (20-29 age group)

12% Poverty Rate

GE COI2007-2012 Goals

10,468 New Jobs @$43,500



$40,765

Educational Degree Attainment

High School 85.3%Bachelor 25.2%

17.1% Youth Retention (20-29 age group)

12% Poverty Rate


2004 2012

Population 253,049 274,432


Average Wage $27,830 $40,765

Total Wages $3.7B $6.4B

See: RA Chapter 6



COI Perspective: Network Providers

Source: Organization for Economic Cooperation and Development (OECD) Broadband Statistics Dec 2005 (Survey of 14 Countries);Pew Internet and American Life Project — Rural Broadband Internet Use Feb 2006

COI Observations:• Competitors have become collaborators• Through collaboration, Connect SI has identified

even more resources and possibilities to improve broadband penetration

• Resources are greater than originally perceived• Connect SI is the focal point:

• Sharing maps and resources• Common goals

COI Results (2006-2007):• Created a demand driven customer aggregation

model generating thousands of open-access sales leads (www.iwantmybroadband.com)

• Over 35+ small towns have received broadband

• Over $24M+ in new private sector broadband infrastructure

• Reached 16% Penetration and 41% Broadband Coverage after only 18 months (starting point was 12% and 25% respectively)

COI Results (2006-2007):• Created a demand driven customer aggregation

model generating thousands of open-access sales leads (www.iwantmybroadband.com)

• Over 35+ small towns have received broadband

• Over $24M+ in new private sector broadband infrastructure

• Reached 16% Penetration and 41% Broadband Coverage after only 18 months (starting point was 12% and 25% respectively)

See: RA Chapter 6

25-to-85% Broadband

Coverage

12-to-54% Penetration

25-to-85% Broadband

Coverage

12-to-54% Penetration

2012 Goals:

0.00

10.00

20.00

30.00

40.00

50.00

60.00

2005

Southern Illinois USA-ruralUSA-average #1 in World

% P

enet

rati

on

of

Po

pu

lati

on

12%

24%

34%

54%Network Provider COI has set an ambitious

goal to increase the SI penetration rate to world class levels!



COI Perspective: Healthcare

COI Vision:Supporting the collaboration and interconnection among healthcare providers and patients to improve:

Healthcare access Health outcomes Provider profitability The qualified healthcare

workforce in Southern Illinois

COI Vision:Supporting the collaboration and interconnection among healthcare providers and patients to improve:

Healthcare access Health outcomes Provider profitability The qualified healthcare

workforce in Southern Illinois

Jobs Earnings GDP

Direct SI impacts 4,676 $214.7M $260.3M

Indirect and induced 2,408 $75.4M $156.3M

TOTAL 7,084 $282.3M $424.5M

COI Results:• Two state healthcare pilot

projects initiated and managed locally

• Collaborate nursing workforce solutions underway

• Prescription Drug Monitoring System

COI Results:• Two state healthcare pilot

projects initiated and managed locally

• Collaborate nursing workforce solutions underway

• Prescription Drug Monitoring System

Potential Impact of New Healthcare Positions by 2012:

Impact of CSI Goals on HealthcareImpact of CSI Goals on Healthcare

Desired SI Future State 2012

Desired SI Future State 2012

1. Economic growth will

improve payer mix

1. Economic growth will

improve payer mix

2. New health jobs will promote

economic growth

2. New health jobs will promote

economic growth

Insured population +10%

Medicaid -26%

Medicare +18%

Uninsured -32%Uninsured -32%

See: RA Chapter 6



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


Wages

41,461 Existing Jobs>$5,000/Yr

41,461 Existing Jobs>$5,000/Yr

27,298 NewHi-Wage Jobs27,298 New

Hi-Wage Jobs

$642 MillionNew KBE Activity

1,600+ Firms


1,600+ Firms

4,500+ Families with Healthcare

Coverage

4,500+ Families with Healthcare

Coverage

Lift 10,000 Citizens Out Of Poverty


$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, 3x’s 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, 3x’s 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



Potential SI Jobsby Sector (1 of 2)

• 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 NPCOI

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 NPCOI

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

Global Workforce

Opportunities

18,750New Jobs

Global Workforce

Opportunities

18,750New Jobs

KBE

8,023New Jobs

KBE

8,023New Jobs

See: RA Chapter 1

**Five Factors are: • High Quality Workforce• College or Universities• Local Amenities• Transportation Infrastructure• Size



Potential SI Jobs by Sector (2 of 2)

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

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

• 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

• Preferred tourism growth sectors indicate SI is

positioned for accelerated tourism growth

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



• Limiting mindset: willingness to accept mediocrity and lack of a sense of excellence

• Insufficient climate of collaboration and trust, making change very difficult

• Continued belief that “the cavalry is coming” despite proof to the contrary

• Losing the best and brightest — youth brain drain• 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 reinforces & funds old economy

strategies, and inhibits 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

Keeps SI From Realizing Its true Potential!

Keeps SI From Realizing Its true Potential!

• Fragmented and poorly leveraged

• Primary focus on local opportunities

• Insufficient # of visionary leaders

• Too many boundaries

Issues Weighing

Down SI

Indigenous

Resources &

Innate Talents

Is SI worth Fighting for?Is SI worth Fighting for?


Guiding Principles Govern SI Behaviorsand Address the Big Dilemma

Transform SI behavior and mindset into to a belief that: SI economic opportunity is unlimited versus limited

SI embraces change rather than fears change

SI does not wait for the cavalry to come

SI is taking control of its own destiny

The only thing holding SI back is its ability to dare to believe that SI’s future

can be brighter than its recent past — this requires: Bold long-term leadership and vision driven by a sense of urgency

Call to action that continually mobilizes thousands to take control of SI’s destiny

Belief that SI and its citizens are worth the risk of striving for a better future

Throwing off the shackles of limited expectations & dependence on others

Commitment to shared investment based on shared reward

SI thinks regionally by connecting & collaborating to create critical mass

Consistent focus and commitment to a long term strategy of transformation



Leadership: the Key to Success

PEOPLE are the most important Connect SI asset who volunteer and commit their time, talent and treasure to achieve SI goals

o Selection: Choice of leaders should be based upon active participation in achieving the CSI Strategy — LAC, COI, cluster & action team leadership should include a mix of styles, connections and influence (see RA Chp. slides 29-30)

o Training: Volunteers should be rewarded with yearly education and self-improvement programs — provides ROI for participation; enhances leadership effectiveness; and improves strategic outcomes

o Support: Leadership is a volunteer effort that requires staff support to achieve desired results — CSI staff needs to proactively engage leaders and fill initiative gaps as identified

o Motivation: Volunteer leaders’ efforts are fueled by recognition of their impact and accomplishments — CSI must regularly highlight leadership and community progress toward goals and celebrate short-term wins

o Focus: CSI staff assist leaders in consistently reinforcing strategic direction, current status, and immediate tasks at hand — maintaining focus yields better results

CSI Leaders, volunteers & staff must function as true catalysts — stimulating the transformation of SI’s economy —



Vision/Goals/Strategies: Intro

The following Vision, Goals, Strategies (and Actions) are a direct result of goals established through strategic discussions in all six COIs

The Readiness Assessment informs Connect SI goals so that strategies and action plans are both targeted, measurable, and achievable

The core message is the transformation of SI These have been structured to:

Address the “SI Big Dilemma” Focus the energies of Connect SI toward making its future Vision a reality Provide a specific sequence — an optimized critical-path to success Make sure Goal #1 is well underway, before implementing Goals #2-4, Get to the action level (4 per strategy) in bite-size pieces

Key next steps for the LAC: Review, prioritize and approve Goals/Strategies/Actions for implementation — must

include how these will be led and managed It is the leadership’s role to communicate the Vision throughout SI, recruit &

resource the action teams, and provide each team with clear direction

The SI Vision, Goals, Strategies & Actions belong to Connect SI — these are your keys to your future —

The SI Vision, Goals, Strategies & Actions belong to Connect SI — these are your keys to your future —



SI Vision 2012

Southern Illinois will: Be the fastest growing economic region in Illinois Be the regional gateway:

From America’s Heartland to the global economy From the global economy to America’s Heartland

Be named a national and regional model for collaborative, regional rural economic transformation

Achieve a positive balance between livability &

sustainable growth

Southern Illinois will: Be the fastest growing economic region in Illinois Be the regional gateway:

From America’s Heartland to the global economy From the global economy to America’s Heartland

Be named a national and regional model for collaborative, regional rural economic transformation

Achieve a positive balance between livability &

sustainable growth

What follows are four Goals to achieve this Vision and transform SI Each Goal has four Strategies (16 total)

Each Strategy has four Actions (64 total)



SI’s Transformation: Four Measurable Goals

GOAL #1: Transform SI Mindset and Behavior – Increase CSI champions and collaborative funding by 300% and build a climate of unlimited economic opportunity through creation of 1,600 KBE firms by 2012

GOAL #2: Transform SI Economic Performance – Increase SI GRP by $3.5 billion/year, its average annual growth rate from 1.34% to 3.85%, and its state and local tax revenues by $200M+ per year by 2012

GOAL #3: Transform the SI Enabling Environment – Create a collaborative regional culture of livable communities with planning and zoning standards; with global best practice broadband penetration; and reduce SI’s #1 ranking in 15 of 18 Illinois Poverty Summit indicators by 50% by 2012 (RA Chp. 1.05)

GOAL #4: Transform SI Leadership and Governance Frameworks – Realize “Crossing the Boundaries” vision of Connect SI by expanding the base of collaborative leaders by 500 persons and implementing regional collaborative governance frameworks to successfully fund, resource and manage a dynamic SI economy; accomplished by 2012



#1: Transform SI Mindset and Behavior

GOAL #1: Transform SI Mindset and Behavior – Increase CSI champions and collaborative funding by 300% and build a climate of unlimited economic opportunity by creating 1,600 KBE firms by 2012

STRATEGY 1A – Develop and implement a regionally-led collaborative funding strategy raising $1.8M+ per year through 2012 and achieve a 4:1 external leverage of regional investment by 2012 (RA Chp. 7.03, slides 28, 29)

STRATEGY 1B – Implement a community engagement strategy that mobilizes 3,000+ Connect SI community champions to support the CSI strategy

STRATEGY 1C – Launch a regional branding and communications strategy that embeds awareness and support of Connect SI across 20% of SI population by 12/31/2009 and 50% by end of 2010

STRATEGY 1D – Shift the focus of SI Community and Economic Development (CED) from declining legacy industries to high growth Knowledge-Based-Enterprise (KBE) innovation sectors by creating 16,000 KBE jobs by 2012, supported by implementation of an Integrated Finance Framework



#2: Transform SI Economic Performance

GOAL #2: Transform SI Economic Performance – Increase SI GRP by $3.5 billion/year, its average annual growth rate from 1.34% to 3.85%, and its state and local tax revenues by $200M+ per year by 2012

STRATEGY 2A – Create 16,379 new jobs at $43,500 by 2012, and an additional 10,919 new jobs from $36,517-$40,785 per year by 2012 — healthcare benefits are to be included with all new jobs

STRATEGY 2B – Improve 41,461 workers incomes by $5,000/year by 2012

STRATEGY 2C – Develop and implement an investment attraction strategy to increase SI global export value by $1Billion/year by 2012 (RA Chp. 5.01, 5.05)

STRATEGY 2D – Shift the ratio of private sector vs. public sector income in SI from 46:54 to U.S. ratio of 65:35 by 2012 to increase SI climate of risk taking and diversify income sources of SI economy (RA Chp. 7)



#3: Transform SI Enabling Environment

GOAL #3: Transform SI Enabling Environment – Create a collaborative regional culture of livable communities with planning and zoning standards; with global best practice broadband penetration; and reduce SI’s #1 ranking in 15 of 18 Illinois Poverty Summit indicators by 50%, by 2012 (RA Chp 1.05)

STRATEGY 3A – Define SI Livable Community Standards by end of 2009 that leverages the planning and design resources of SIU, UI and Urban Land Institute (RA Chp. 3.04)

STRATEGY 3B – Improve regional health outcomes by reducing cardiovascular disease mortality from 215 to 166 per 100,000 by 2012, a 23% reduction (RA Chp. 6.06)

STRATEGY 3C – Achieve a 54% global best practice broadband penetration rate in SI by 2012 and increase Network Providers revenues $45M/year by responding to industry cluster and regional COI connectivity requirements

STRATEGY 3D – Develop a collaborative education and training strategy across SI that achieves a 32% Associate Degree and 85% High School Diploma or higher to meet 2012 workforce requirements (RA Chp. 5.02)



#4: Transform SI Leadership and Governance Frameworks

GOAL #4: Transform SI Leadership and Governance Frameworks – Realize “Crossing Boundaries” vision of Connect SI by expanding the base of collaborative leaders by 500 persons and implementing regional collaborative governance frameworks to successfully fund, resource and manage a dynamic SI economy; accomplished by 2012

STRATEGY 4A – Create a “Crossing Boundaries Institute” focused on training and developing collaborative leaders to manage/drive a 21st century regional SI economy — exhibits 3C behaviors: Collaboration, Connectivity and Changed Spending

STRATEGY 4B – Establish a regional CED planning, strategy and data service for local communities as well as a benchmarking portal to measure SI progress in achieving Connect SI goals and improving SI innovation economy readiness relative to global best practice

STRATEGY 4C – Support, maintain and resource four regional COI’s, Healthcare COI, Network Provider COI, 12 industry cluster teams, and action plan implementation teams (RA Chapter 7.04 slides 27, 32)

STRATEGY 4D – Mobilize, connect and align non-profit community development and social service groups to create a collaborative approach to achieve the 2012 Connect SI CED growth goals



• 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!



Phase 1 Outcomes

GIS Asset Maps

Broadband Strategy

Economic Benchmarks

Regional Economic Strategy

Healthcare Strategy

Regional EconomicFramework

Five-Year Measurable Goals

Implementation &Funding Plan

Phase 1 => Phase 2 => Goals

2012 Goals

Greater EgyptCOI

Southeastern COI

Southern Five COI

Greater Wabash COI

Healthcare COI

Network Provider COI

Connect SI Leadership

Board

COI Transition to Phase IICOI Transition to Phase II

Cluster

Cluster

Cluster

Cluster

Cluster

Cluster

Cluster

Cluster

Cluster

GE COI

SE COI

S5 COI

GW SOI

NP COI

Healthcare COI

Youth Engagement

Strategy

Phase II Structure and Strategy

LEADERSHIP BOARD

Integrated Finance Strategy

Innovation Ecosystem

Industry Cluster

Analysis and Strategy

CrossingBoundaries

Institute

Industry Clusters: See RA Chapter 7 Slide 27


Wages

41,461 Existing Jobs

>$5,000/Yr

27,298 NewHi-Wage Jobs


1,600+ Firms

+4500 Familieswith Healthcare

Coverage



Is SI worth Fighting for?Is SI worth Fighting for?


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 Focus to Achieve SI Goals

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 Education & Training (also supports all the other clusters)



Source: “State of Working Illinois”, by Northern Illinois University (Nov 2005); “21st Century Workforce” (May 2004); IMF; VE research

GD

P A

vera

ge

An

nu

al

Gro

wth

Rat

e %

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

6.89%

M/S#1

M/S#5



Measurable Indicators of ProgressTowards 2012 CSI Goals

It’s Time to Go Global!

0

2

4

6

8

10

12

Exports as a % ofGDP

U.S.

Illinois

SI

11%

8.4%

2.4%0%

10%

20%

30%

40%

50%

60%

70%

Private SectorPayroll & Benefits

Transfer Payments,All Gov't &

Education Earnings

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!



Transforming Southern Illinois: ROI

Achieving 50% or 100% of Connect SI 2012 economic growth goals provides substantial ROI on a five year $9M investment in Connect SI

Percent of Goals Reached by 2012: 50% 100% Annual growth in the economy

Current GRP = $17.6B$1.75B $3.5B

Annual growth in wages Current Wages = $8B

$1B $2B

Annual growth in wage-related tax revenue State and Local Taxes

$82M $164M

Annual growth in assessable tax base Historic EAV growth of 2.72% AAGR

+800M+2.5% AAGR

+1.6B+5% AAGR

Annual SI Return on Investment – 2012 and beyond

What ROI is enough to gain your commitment of time, treasure and talent to transform the SI economy now?

What ROI is enough to gain your commitment of time, treasure and talent to transform the SI economy now?



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



2012: What SI Success Looks Like

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 and lack of access becomes an asset; instead of forgotten by Chicago, Springfield and Washington, SI is a land and lifestyle treasured, respected, sought after and envied — there is only one SI in the World

SI communities see themselves in a new light; they are respectful of their place; they 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



The Call to Action

• These Goals/Strategies/Actions are ambitious but are, in fact, achievable:• Unless you strive for stretch goals — you will never get

to “adequate”

• The key questions each of you must answer:• Is SI worth fighting for? If not now, when?• Are you willing to take control of your destiny?

“Let me assert my firm belief that the only thing we have to fear is fear itself -- nameless, unreasoning, unjustified terror which

paralyzes needed efforts to convert retreat into advance” — FDR 1933 Speech to turnaround the Country’s pessimistic outlook —

“Let me assert my firm belief that the only thing we have to fear is fear itself -- nameless, unreasoning, unjustified terror which

paralyzes needed efforts to convert retreat into advance” — FDR 1933 Speech to turnaround the Country’s pessimistic outlook —



“A Return to Love” by Marianne Williamson

Our deepest fear is not that we are inadequate Our deepest fear is that we are powerful beyond measure

It is our light, not our darkness that most frightens us We ask ourselves, who am I to be brilliant, gorgeous, talented, fabulous?

Actually, who are you not to be? You are a child of God

Your playing small does not serve the world There is nothing enlightened about shrinkingso that other people

won't feel insecure around you We are all meant to shine, as children do

We were born to make manifest the glory of God that is within us It is not just in some of us, it is in everyone

And as we let our own light shine, we unconsciously give other people permission to do the same

As we are liberated from our own fear,our presence automatically liberates others.

The future of Southern Illinois is in your hands!The future of Southern Illinois is in your hands!


©2008 vital economy, inc. — 1 — southern illinois: garden of the gods coi briefing: 2008-2012...

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