strategic doing: a framework for economic development strategy
TRANSCRIPT
Strategic Doing:
A Framework for Economic Development StrategyScott Hutcheson, Ph.D.
ANZRSAI 38th Annual Conference
December 2014 - Christchurch, New Zealand
Hierarchy of Complex Systems
• Social Organizations – economics, education, politics
• Individual Human – language capacity, knowledge accumulation, design and use of tools
• Animal – mobility, information processing
• Plants – viability
• Open Systems – matter, energy
• Cybernetics – computers
• Clockworks – engines
• Frameworks – buildings, cells
Co
mp
lex
ity
Boulding, K. (1956). General systems theory—the skeleton of science. Management Science 2(3): 197-208.
Hierarchy of Complex Systems
• Social Organizations – economics, education, politics
• Individual Human – language capacity, knowledge accumulation, design and use of tools
• Animal – mobility, information processing
• Plants – viability
• Open Systems – matter, energy
• Cybernetics – computers
• Clockworks – engines
• Frameworks – buildings, cells
Co
mp
lex
ity
Boulding, K. (1956). General systems theory—the skeleton of science. Management Science 2(3): 197-208.
Hierarchy of Complex Systems
• Social Organizations – economics, education, politics
• Individual Human – language capacity, knowledge accumulation, design and use of tools
• Animal – mobility, information processing
• Plants – viability
• Open Systems – matter, energy
• Cybernetics – computers
• Clockworks – engines
• Frameworks – buildings, cells
Co
mp
lex
ity
Boulding, K. (1956). General systems theory—the skeleton of science. Management Science 2(3): 197-208.
Strategy10
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
Metro-Goldwyn-Mayer
71 cast and crew
members all working
for MGM
14
15
What do the military and vertical business
models have in common?
16
What do the military and vertical business
models have in common?
17
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
24
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
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”
metro regions
had more than
double the job
growth of the
“least-
connected”
metro areas.
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 Catlett
Economist, 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
Sharing
Resources
Sharing
Information
Mutual
Awareness
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
• Think about strategy development strategy
differently
• Accelerate the collaborations
• Create and guide agile, asset-based
strategic action plans to meet a progressive
series of clearly defined objectives
Addressing Economic
DevelopmentStrategy
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 = 3rd Fastest Dying US City
2014 = 3rd Fastest Growing US City
The key to success was that rather
than focusing on investing in the
right projects, we focused on
investing in the right collaborations
Is it…
scalable,
replicable,
sustainable?
Practicing Strategic Doing
70
• 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
The Scholarly Evidence for Strategic Doing
Hutcheson, S. (2014). Effective Strategy in
Local & Regional Development.
Hutcheson, S. (2914). Effective Strategy Making
In Economic & Community Development.
Morrison E, & Hutcheson, S. (2014). Accelerating
Civic 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 University
www.pcrd.purdue.edu
www.strategicdoing.net
www.facebook.com/stratdoing
www.slideshare.net/jshutch
Find these slides