Creating an Agile Strategy

for Diversifying the Valdez EconomyScott Hutcheson, Ph.D.

February 2015 - Valdez, Alaska

Seeing the Unseeable

Seeing the Unseeable

1) Good Money – Increase the amount of money coming into the community.

2) Neutral Money – Increase the velocity of money circulated in the region among local businesses

3) Bad Money – Reduce income leaving the community via outside purchases

Good money increases when products are exported and when outsiders visit and spend.

Bad money is reduced when locals invest more at home.

Neutral money speeds up with business to business trade.

The Valdez Economy: Three Flows of Money

Adapted from the work of Ed Morrison & David Morganthaler

Strategy12

Strategy = the employment of battles to win the war. - General Carl von Clausewitz

I will build a motor car for the great multitude. It will be so low in price that no

man will be unable to own

one. - Henry

Ford

Source: Bently Historical Library, Josephine Fellows Gomon Papers, Box 10, draft manuscript, The Poor Mr. Ford.

In 1928 Henry Ford’s River Rouge Plant in Dearborn, Michigan became the world's largest industrial complex, pursuing vertical integration to such an extent that it could produce its own steel. In this year he also established “Fordlandia” his rubber tree plantation in the Amazon Rainforest

The Ford Motor Company

The world has changed a lot since we first started using strategies to chart our course

Metro-Goldwyn-Mayer

71 cast and crew members all working for MGM

17

18

What do the military and vertical business models have in common?

19

What do the military and vertical business models have in common?

20

Metro-Goldwyn-Mayer

Metro-Goldwyn-Mayer

Metro-Goldwyn-Mayer

Metro-Goldwyn-Mayer

Cast and crew of 2,000+, hardly any

working for MGM

iPhone

Strategic planning

often spoils strategic thinking.

- Henry Mintzberg

29

Strategic Doing enables people to form action-oriented

collaborations quickly, move them toward measurable

outcomes, and make adjustments along the way.

Thinking, Behaving, & Doing in New Ways

Thinking in New Ways

Strategic Doing

Leverages the Value of a Network

10 nodes, 9 connections

10 nodes, 45 connections

Grandfather Grandchildren

There is no top or bottom in a network

Networks move us to new opportunities

Networks move us to new opportunities

http://www.slideshare.net/linkedin/mandel-linked-in-connections-reportnov-2014

The “most-connected”

communities had more than

double the job growth of the

“least-connected”

communities.

We Create Networks by Connecting Assets

Kretzmann, J. & McKnight, J. (1999).Building Communities from the Inside

Out: A Path Toward Finding and Mobilizing

A Community’s Assets.

We Create Networks by Connecting Assets

We Create Networks by Connecting Assets

We Create Networks by Connecting Assets

Strategic Doing Recognizes That We Can’t Predict the Future

Dr. Lowell CatlettEconomist, Futurist, and Professor

New Mexico State University

Strategic Doing Recognizes That We Can’t Predict the Future

One study looked at 7,000 different economic predictions and found 47% of them was correct.

Strategic Doing Recognizes That We Can’t Predict the Future

Flip a coin and you beat the economists by 3%.

Behaving in New Ways

Strategic Doing Accelerates Collaboration

Turf

Trust

TIME

SharingResources

Sharing Information

MutualAwareness

Co-Execution

Co-Creation

Acknowledgment Exploration Cooperation Collaboration Innovation

Adapted from Collaboration Continuum from ACT for Youth

Building trust takes doing

Trust powers innovation

Innovating networks produce increasing returns

Mathematics says the sum value of a network increases as the square of

the number of members. In other words, as the number of nodes in a

network increases arithmetically, the value of the network increases

exponentially. Adding a few more members can dramatically increase

the value for all members.

- Kelly, K. (1999). New Rules for the New Economy

Prosperity is not “winner take all”

Source: Clipart by C Charley-Franzwa - http://clipartof.com/50191

Doing in New Ways

Strategic Planning Strategic Doing

Strategic Doing is a strategy protocol built for networks

Alignments emerge

Strategy answers two questions.

A 30/30 commitment drives learning

Strategic Doing Focuses on Small Wins to Achieve Big Goals

Doubt and dwindling motivation comes on quickly when a big goal is missed. On the other hand, small wins lead to the progress principle - more confidence, high performance, and motivation to keep moving forward. - Teresa Amabile

Strategic Doing isSimple but not easy.

It’s the simplicity on The other side of

The complexity.

Strategic Doing began in Oklahoma

City in1993

Oklahoma City Today

Photo by: Luke Barrett

Kokomo, Indiana

Kokomo, Indiana

Workforce Innovations in Regional Economic Development- Designed & guided 60+ collaborations- Over 100 partner organizations- Tracked over 200 metrics- Hired 2.5 people to manage it all- 80% of initiatives sustained

Kokomo, Indiana2008 = One of the Fastest Dying US Cities2014 = One of the Fastest Growing US Cities

The key to these successes was that Rather than focusing on investing in theright projects, we focused on investing in the right collaborations.

Is it… scalable, replicable, sustainable?

Strategy becomes a collective habit of ongoing conversation coupled with action, rather than an event or a document

Practicing Strategic Doing

77

• Local & Regional Economic Development

• Workforce Development• Community & Neighborhood

Development• Cluster Development• Local/Regional Food Systems• Community Health• Innovation Ecosystem Development• Strategic Alliances• Inter-Unit Organizational Collaboration• National Associations

Practicing Strategic

Doing

Strategic Doing in the “Literature”

Hutcheson, S. (2014). Effective Strategy inLocal & Regional Development.

Hutcheson, S. (2914). Effective Strategy Making In Economic & Community Development.

Morrison E, & Hutcheson, S. (2014). AcceleratingCivic Innovation with “Strategic Doing.”

Purdue’s partners in Strategic Doing

To know what you’re going to draw, you have to begin drawing.

- Pablo Picasso

To learn more and to connectScott Hutcheson, Ph.D.

Purdue Universityhutcheson@purdue.edu

www.pcrd.purdue.eduwww.strategicdoing.net

www.facebook.com/stratdoingwww.slideshare.net/jshutch

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