rural regions

Guiding Rural Regions Guiding Rural Regions

toward Open Innovationtoward Open Innovation

Ed Morrison

Purdue Center for Regional Development

May, 2010

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Slides and other materials available at:http://rural-innovation.strategy-nets.net

Questions: Peggy Hosea phosea@purdue.edu

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Connected this morning

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The Purdue Center for Regional Development is deeply engaged with developing a new generation of rural strategiesand university regional engagement

Slides and other materials available at:http://rural-innovation.strategy-nets.net

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This talk reflects what I have been learning about regions across the country over the past 18 months or so...

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We start our journey with a clear definition of economic development

‣ Where do we stand?

‣ Where are we heading?

‣ How will we get there?

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QuickTime™ and aCinepak decompressor

are needed to see this picture.

Creating wealth in our Grandfather’s economy

Regional food systems

Regional energy systems

Tourism clusters

Innovation hubs

Education innovations

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That means abandoning old ideas of industrial recruitment and developing new approaches to rural innovation and entrepreneurship...

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In our Grandfather’s economy, regions functioned with clear boundaries

Counties

Cities and Towns

Federal Agencies

State Agencies

K-12 SchoolsHigher Education

Institutions

WorkforceBoards

Social ServiceOrganizations

Chambers of Commerce

Economic DevelopmentOrganizations

Foundations

Regional Planning Organizations

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Counties

Cities and Towns

Federal Agencies

State Agencies

K-12 SchoolsHigher Education

Institutions

WorkforceBoards

Social ServiceOrganizations

Chambers of Commerce

Economic DevelopmentOrganizations

Foundations

Regional Planning Organizations

As our Grandchildren’s economy is emerging, regions are not responding all different.

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Our rural regions are covered with invisible fences that no longer work...but continue to constrain us

‣ Where do we stand?

‣ Where are we heading?

‣ How will we get there?

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We are heading to our Grandchildren’s economy which is full of networks

A global map of Internet connections

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The iPhone production

network

Question: Who makes the iPhone? Answer: A network led by Apple

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Question: What is a regional food system?

A regional food system as one that supports long-term connections between farmers and consumers while meeting the economic, social, health and environmental needs of the communities within a region.

Iowa State University

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We need new thinking about rural regions in terms of the networks that sustain them...

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So, what kind of networks do we need?

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With deeper regional collaborations, new horizons of emerge for rural regions as networks connect assets in new and different ways....

Core Core GroupGroup

FocuFocus 1s 1

FocuFocus 2s 2

FocuFocus 3s 3

FocuFocus 4s 4

Initiatives Initiatives

At Purdue, we have used strategic doing to generate over 50 initiatives (each with metrics) in four focus areas...with one administrator

‣ Where do we stand?

‣ Where are we heading?

‣ How will we get there?

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Regions operate on different horizons as they transition toward more open innovation strategies...

Remember the core idea: We are moving from our Grandfather’s to our Grandchildren’s economy...

This transformation is a big deal...

Every few hundred years in Western history, there occurs a sharp transformation.

Peter Drucker, The New Realities (1989)

Grandfather’s Grandfather’s EconomyEconomy

Grandchildren’s Grandchildren’s EconomyEconomy

Hierarchies NetworksCommand and control

Link and leverage

Vertically integrate

Horizontally connect

Transactions RelationshipsProtect boundaries

Strengthen cores

Strategic Planning

Strategic Doing

Changing the narrative involves a deep change in mindsets and a new set of habits

Changing the narrative is important because people move in the direction of their conversations....Besides, our children are listening

Here’s how the California Workforce Association put it last month...

During Horizon 1, leaders are moving away frm our Grandfather’s economy by:

‣Focusing on opportunities, not problems ‣Changing the mindsets from hierarchies to networks;

‣Refocusing on our collective responsibilities to the next generation;

‣Starting new personal habits of “closing triangles”

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Charleston Digital Corridor: fridays @ the

corridor

Youngstown Business Incubator:

Third Thursday at 3

Regions reaching Horizon 2 uncover networks with regular civic forums...guided conversations

Regions reaching Horizon 2 sometimes formalize rules of civility...to create the space we need for complex thinking

In Horizon 2, regions are:

‣Creating a “civic space” for complex thinking

‣Uncovering assets and networks with regular forums

‣Linking assets to define new opportunities

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Strategy answers two questions:

Strategy has never been more important, but how we develop and implement strategy has changed dramatically in the past decade.

Why?

The emergence of networks.

1. Where are we going?

2. How will we get there?

Strategic Planning evolved to handle large hierarchical organizations...It doesn’t work in networks

A small group at the top did the thinking

A larger group at the bottom did the doing

Strategic planning doesn’t work because networks have no tops or bottoms

Strategic Doing is simple, but not easy...It takes discipline, focus and practice

As the teams answer these questions, they generate all the components of a Strategic Action Plan

With Strategic Doing, there’s no separation between thinking and doing Result: Strategic Agendas and Strategic Action Plans that are flexible and change with circumstances

Strategic Strategic Doing Doing

produces produces alignmentsalignments, links and , links and leverageleverage

Strategic conversations generate “link and leverage” strategies

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Here’s a glimpse into one of our strategic doing workshops. What’s wrong with this picture?

Kokomo, IN

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Cape Girardeau, MO

Southeast Missouri used Strategic Doing to shape a strategy for its P-20 Council

In reaching Horizon 3, regions are:

‣Thinking strategically

‣Defining strategic outcomes, metrics and pathways

‣Starting to translate ideas into action

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Guidng networks with strategy is like paddling a kayak in the ocean

The task requires quick strategic assessments and continuous “doing”

We are here

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Innovation with networks is a continuous process of aligning, linking and leveraging our assets toward transformative outcomes

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Remember that rural regions need collaboration in five key areas

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We are continuously mapping and aligning our assets and initiatives

11 22 33

4466

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© 2008, Brian D. Thompson, UWM Research Foundation 10/6/08

Funds

Fluid Transport/ Civil & Ind. Engr.

Detection

Materials

Bioscience

Pumps/ Valves/

Components

Analysis/ Measuring/

Control

Water User

Consumer Products

Treatment/ Processing/ Softening

Utilities

Funding Agencies

Academic Institutions

Private SectorPublic Sector

Milwaukee 7 Water Cluster

DOE

EPA

NSF

USDA

DoD

NOAA/DOC

Interior

World Bank

Foundations

InternationalPartners

NIHGreater

MilwaukeeFoundation

UWM

Marquette

UW-Madison

WATER Inst.Chem & Biosci

School of Freshwater Science

CEAS

Physics

MSOE

Fluid Power

Rapid Proto Center

M7/GMCMMSD

City ofMilwaukee

DNRUNDP

Federal Government

Municipalities

Water Council

Pentair• Filtering & purification

GE

Badger Meter• Water meters• Meter reading systems

Procorp• Water reuse & softening • Phosphate & radium removal

AO Smith• Water heaters

Kohler• Faucets• Materials, coatings, plating• Casting technology

Miller Coors• Intake quality, output quality• Energy consumption

AquaSensorsThermo Fisher

Scientific

Fall River

Great Lakes Water• Water treatment equipment Advanced

Chemical Systems• Ind. wastewater treatment

CH2MHILL• Engineering services

ITT

Sanitarie• Wastewater treatment

design

Flygt• pumps

SiemensJoyBucyrus

Veolia• Water utilities

OpportunitiesEnvironmental• Algae control (& exploitation)• Removal of PCBs from lakes & rivers• Storm water containment, • Road salt• Ship’s ballast – policy/enforcement• Aquaculture• Lake Michigan contamination• Policy issues – metering/incentives

Energy/Efficiency• Ethanol production efficiency• Tar sands water treatment• Elimination of boiler scaling• Increasing brewing efficiency• Increased efficiency of water heating• Speeding treatment for large volumes• Increasing treatment efficiency

Processing/Treatment•Municipal wastewater treatment–Storm water treatment–Reduced use of chemicals•Industrial wastewater treatment–Farm manure, food processing waste, metals–Utilizing sewer sludge•Residential Water Treatment–Residential water treatment, home filtration–Residential Water softening without salt

•Reverse Osmosis•Softening•Ships ballast - treatment•Treatment targets–PCBs in sewer pieps–Desalinzation–Radium in ground water–Pharmaceuticals–Phosphate

Monitoring/Detection• Water security• Real time monitoring • User detection systems• Real time sensing for life forms• Pharmaceuticals

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© 2008, Brian D. Thompson, UWM Research Foundation 10/6/08

Funds

Fluid Transport/ Civil & Ind. Engr.

Detection

Materials

Bioscience

Pumps/ Valves/

Components

Analysis/ Measuring/

Control

Water User

Consumer Products

Treatment/ Processing/ Softening

Utilities

Funding Agencies

Academic Institutions

Private SectorPublic Sector

Milwaukee 7 Water Cluster

DOE

EPA

NSF

USDA

DoD

NOAA/DOC

Interior

World Bank

Foundations

InternationalPartners

NIHGreater

MilwaukeeFoundation

UWM

Marquette

UW-Madison

WATER Inst.Chem & Biosci

School of Freshwater Science

CEAS

Physics

MSOE

Fluid Power

Rapid Proto Center

M7/GMCMMSD

City ofMilwaukee

DNRUNDP

Federal Government

Municipalities

Water Council

Pentair• Filtering & purification

GE

Badger Meter• Water meters• Meter reading systems

Procorp• Water reuse & softening • Phosphate & radium removal

AO Smith• Water heaters

Kohler• Faucets• Materials, coatings, plating• Casting technology

Miller Coors• Intake quality, output quality• Energy consumption

AquaSensorsThermo Fisher

Scientific

Fall River

Great Lakes Water• Water treatment equipment Advanced

Chemical Systems• Ind. wastewater treatment

CH2MHILL• Engineering services

ITT

Sanitarie• Wastewater treatment

design

Flygt• pumps

SiemensJoyBucyrus

Veolia• Water utilities

OpportunitiesEnvironmental• Algae control (& exploitation)• Removal of PCBs from lakes & rivers• Storm water containment, • Road salt• Ship’s ballast – policy/enforcement• Aquaculture• Lake Michigan contamination• Policy issues – metering/incentives

Energy/Efficiency• Ethanol production efficiency• Tar sands water treatment• Elimination of boiler scaling• Increasing brewing efficiency• Increased efficiency of water heating• Speeding treatment for large volumes• Increasing treatment efficiency

Processing/Treatment•Municipal wastewater treatment–Storm water treatment–Reduced use of chemicals•Industrial wastewater treatment–Farm manure, food processing waste, metals–Utilizing sewer sludge•Residential Water Treatment–Residential water treatment, home filtration–Residential Water softening without salt

•Reverse Osmosis•Softening•Ships ballast - treatment•Treatment targets–PCBs in sewer pieps–Desalinzation–Radium in ground water–Pharmaceuticals–Phosphate

Monitoring/Detection• Water security• Real time monitoring • User detection systems• Real time sensing for life forms• Pharmaceuticals

• Joe Aldstadt – analytical methods• Peter Geissinger – detection• Alan Schwabacher– pharmaceuticals in water

• Carmen Aguilar – microbiology• David Petering –metal metabolism • Val Klump

• Rohatgi, Pradeep – adv. castings, lightweight, lead-free • Aita, Carolyn – advanced coatings• Gong, Sarah – polymer materials

• Chen, Junhong – nano materials, sensors

• Li, Jin – pollutant transport modeling• Bravo, Hector – hydraulic modeling• Christensen, Erik – pollutants in water• Amano, Ryoichi - CFD• Pillia, Krisna – porous media modeling• Kevin Renken- mass transfer• Sobolvev – biproducts utilization• Doug Cherkauer – groundwater hydrology

• Jim Waples – water aging• Tom Consi – aquatic robots• Tom Grundle - harbors

• Tim Ehlinger – aquatic systems

• Burlage – PCR environmental test

• Shangping Xu – safe drinking water

Partnerships• Sponsored Research Proj.• Shared equipment• Graduates• Workforce training• Subcontractor/supplier• Extramural grant support• Philanthropic support

Cluster Effects• Shared resources/equipment• Collaborative grants• Improved competitiveness• Translational science

Regions reaching Horizon 4 uncover a new approach to leadership

Grandfather’s Leadership

What we need today

Centralized Distributed, Shared

Single Leader Many Leaders

Command and control

Link and leverage

Lead from the frontLead from front and rear

Lightbulb: We are the leaders we have been waiting for

If your actions inspire others to dream more, learn more, do more and become more, you are a leader.

John Quincy Adams

In reaching Horizon 4, regions are:

‣Regularly revising a Strategic Action Plan‣Uncovering new leaders‣Leveraging Web 2.0

Rule 1: Guide Conversations

Rule 2: No Whining

Rule 3: Create safe civic spaces

Rule 4:

Rule 4: Stop looking for permission

Welcome to

The Permission Room

Rule 5: Close triangles...relentlessly

Bill

You

CathyE-mail introductions take 5 minutes

100 people3 triangles a week per personequals15,600 new links per year

Rule 6: Go slowly now to go faster later

Rule 7: Don’t fear invisible fences

(They don’t work on humans)

Rule 8: Take the Shanghai perspective

Rule 9: Practice Strategic Doing

Rule 10: Don’t forget to have fun

A last word...

"Strategic doing is the next iteration model for strategy.

“I have been using strategic planning models and balance scorecard models for the past twenty years.  All with some degree of noted success.  When I switched to strategic doing for civic good model, I noticed an immediate change in the energy and enthusiasm of shareholders.  It goes straight to the point without overwrought exercises and susceptibility to special interest groups in shaping the plan.

"Perhaps the most poignant difference is the scope and speed of delivery with this model.  You can get from drawing board to results much quicker.  And isn't that the point: to move from Point A to B? Everybody wants to be at Point B.  This model delivers"

Bruce ConnollyDirector - Center for Education Innovation and Regional Economic DevelopmentMilwaukee, WI

Next Steps: Let’s answer some questions

edmorrison@purdue.eduhttp://edmorrison.com

Purdue Center for Regional Developmenthttp://www.pcrd.purdue.edu

Slides available at:http://rural-innovation.strategy-nets.net