Transcript No Slide Title

Southern Illinois: Garden of the Gods
COI Briefing:
2008-2012 Strategic Roadmap
February 19-20, 2008
ViTAL Economy Alliance
Frank Knott, Project Lead; Stan Halle, Senior Editor;
Jim Haguewood, Rob Beynon, & Neil Gamroth, Principal Economic Researchers
[email protected]; http://www.vitaleconomy.com
©2008 ViTAL Economy, Inc.
—1—
Connect SI: Living the Credo of
Measurable Outcomes
Is SI worth fighting for?
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
©2008 ViTAL Economy, Inc.
—2—
Connect SI: Living the Credo of
Measurable Outcomes
Is SI worth fighting for?
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
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!
©2008 ViTAL Economy, Inc.
—3—
Today’s Briefing
Is SI worth fighting for?
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
©2008 ViTAL Economy, Inc.
—4—
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
Is SI worth fighting for?
Sense of Urgency
•Changing our mindset — how
we view poverty!
$90.3 M in New Wages
•Stop the bleeding — put a
triage process in place for the
economy, now!
•How will your children grow up
and where will they go?
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)
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
©2008 ViTAL Economy, Inc.
S5 COI 2012 Goals
—5—
784 New Jobs @$43,500
4,863 Existing Jobs
Raised 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 Poverty
From 14.5% to 12.5%
COI Perspective:
Southeastern
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
©2008 ViTAL Economy, Inc.
Is SI worth fighting for?
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
Regional Economic Benchmarks
2004
2012
Population
49,454
56,000
Total Employed
21,903
25,500
Average Wage
27,494
40,276
Total Wages
$602.2M
$1,027B
See: RA Chapter 6
—6—
SE COI
2007-2012 Goals
2,158 New Jobs
@$43,500
4,380 Existing Jobs
Raised by $5,000/Year
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
COI Perspective:
Greater Wabash
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 nonrenewable as well
• Fill key gaps (e.g., need
Pediatrics, Obstetrics); lots of
ripple effects
©2008 ViTAL Economy, Inc.
Is SI worth fighting for?
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 live
o Our quality of life
o 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!
Regional Economic Benchmarks
2004
2012
Population
51,421
53,000
Total Employed
26,400
27,746
Average Wage
$26,311
$36,517
Total Wages
$694.6M
$1.013B
—7—
GW COI
2007-2012 Goals
1,381 New Jobs
@$43,500
5,280 Existing Jobs
Raised by $5,000/Year
920 jobs at the
new average wage
$36,517
$36,406 Per Capital
Income
See: RA Chapter 6
COI Perspective:
Greater Egypt
Is SI worth fighting for?
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
©2008 ViTAL Economy, Inc.
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 COI
2007-2012 Goals
10,468 New Jobs
@$43,500
26,937 Existing Jobs
Raised by $5,000/Year
Regional Economic Benchmarks
2004
2012
Population
253,049
274,432
Total Employed
134,685
157,787
Average Wage
$27,830
$40,765
Total Wages
$3.7B
$6.4B
6,979 jobs at the
new average wage
$40,765
Educational Degree
Attainment
High School 85.3%
Bachelor 25.2%
17.1% Youth Retention
(20-29 age group)
12% Poverty Rate
See: RA Chapter 6
—8—
COI Perspective:
Network Providers
Is SI worth fighting for?
2012 Goals:
25-to-85%
% Penetration of
Population
60.00
50.00
54%
40.00
30.00
34%
20.00
10.00
24%
Network Provider COI
has set an ambitious
goal to increase the SI
penetration rate to
world class levels!
Broadband
Coverage
12-to-54%
Penetration
12%
0.00
2005
Southern Illinois
USA-average
USA-rural
#1 in World
COI Results (2006-2007):
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
• 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
©2008 ViTAL Economy, Inc.
—9—
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
Is SI worth fighting for?
Impact of CSI Goals on Healthcare
1. Economic
growth will
improve payer mix
Desired SI
Future State 2012
2. New health jobs
will promote
economic growth
COI Results:

Insured population
+10%

Medicaid
-26%

Medicare
+18%

Uninsured
-32%
• Two state healthcare pilot
projects initiated and managed
locally
Potential Impact of New Healthcare Positions by 2012:
• Collaborate nursing workforce
solutions underway
• Prescription Drug Monitoring
System
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
See: RA Chapter 6
©2008 ViTAL Economy, Inc.
— 10 —
Connecting SI’s Assets and Trends
to 2012 Goals
Regional Assets
• Global growth presents SI with
opportunity to accelerate its
economic growth from 1.34% to
3.85% per year
• SIU - a major R&D university with 60+
years history serving students from
over 100 world cultures supports
global KBE growth
• KBE activity now accounts for 50%
plus of GDP growth, 3x’s growth in
occupations and pays double the
average wage of other jobs
• 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 alternativeenergy assets. SI is a coal leader and
is strong in 2 of 4 areas of projected
alternative energy growth by 2030
CSI 2012
M/S1 Goals*
Global & Nat’l Trends
• Heartland of America location,
equidistant to 2/3 of U.S. markets,
central to economic expansion of the
Americas
• Robust education and training
resources position SI for global
workforce training opportunity
Is SI worth fighting for?
+
• 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
27,298 New
Hi-Wage Jobs
41,461
Existing Jobs
>$5,000/Yr
=
$642 Million
New KBE Activity
1,600+ Firms
>$2 Billion
New Annual
Wages
4,500+ Families
with Healthcare
Coverage
Lift 10,000
Citizens Out
Of Poverty
$200 Million
Information
Technology
Investment
Note: Regional Assets (Chap 2); Trends (Chap 1); * Milestone #1 Connect SI Goals were announced to the Public 26 Feb 2007
©2008 ViTAL Economy, Inc.
— 11 —
Potential SI Jobs
by 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

Is SI worth fighting for?
Global
Workforce
Opportunities
18,750
New Jobs
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



KBE
4 of 5** factors in rural KBE growth are SI strengths
8,023
— 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
New Jobs
©2008 ViTAL Economy, Inc.
See: RA Chapter 1
— 12 —
**Five Factors are:
• High Quality Workforce
• College or Universities
• Local Amenities
• Transportation Infrastructure
• Size
Potential SI Jobs
by Sector (2 of 2)
• 77 million retiring baby boomers present an affluent
senior living growth opportunity for SI
Senior Living
3,676
New Jobs
SI energy assets and knowledge are in the
sweet spot of energy priorities for growth
Energy & Mining
• Preferred tourism growth sectors indicate SI is
positioned for accelerated tourism growth
Tourism


Is SI worth fighting for?
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
5,680
New Jobs
4,450
New Jobs
Log/Trans//Dist
1,675
New Jobs
Climate of Economic Opportunity = an additional 10,210 new jobs
NEW GRAND TOTAL = 50,789 Jobs (vs. 27,298 Jobs Feb ‘07)
©2008 ViTAL Economy, Inc.
See: RA Chapter 1
— 13 —
SI’s Big Dilemma:
Climate of Limited Opportunity
Is SI worth Fighting for?
Resulted in
only 1.35%
AAGR for last
25 Years
•
•
•
•
•
•
•
•
•
•
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
©2008 ViTAL Economy, Inc.
•
•
Fragmented and
poorly leveraged
Primary focus on
local opportunities
Insufficient # of
visionary leaders
Too many boundaries
Keeps SI From Realizing
Its true Potential!
— 14 —
Guiding Principles Govern SI Behaviors
and Address the Big Dilemma


Is SI worth fighting for?
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
©2008 ViTAL Economy, Inc.
— 15 —
Leadership:
the Key to Success

Is SI worth fighting for?
PEOPLE are the most important Connect SI asset who volunteer and commit
their time, talent and treasure to achieve SI goals
o
o
o
o
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)
Training: Volunteers should be rewarded with yearly education and selfimprovement programs — provides ROI for participation; enhances leadership
effectiveness; and improves strategic outcomes
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
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
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 —
©2008 ViTAL Economy, Inc.
— 16 —
Vision/Goals/Strategies:
Intro



Is SI worth fighting for?
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 —
©2008 ViTAL Economy, Inc.
— 17 —
SI Vision 2012
Is SI worth fighting for?
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)
©2008 ViTAL Economy, Inc.
— 18 —
SI’s Transformation:
Four Measurable Goals




Is SI worth fighting for?
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
©2008 ViTAL Economy, Inc.
— 19 —
#1: Transform
SI Mindset and Behavior

Is SI worth fighting for?
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-BasedEnterprise (KBE) innovation sectors by creating 16,000 KBE jobs by 2012,
supported by implementation of an Integrated Finance Framework
©2008 ViTAL Economy, Inc.
— 20 —
#2: Transform
SI Economic Performance

Is SI worth fighting for?
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)
©2008 ViTAL Economy, Inc.
— 21 —
#3: Transform
SI Enabling Environment

Is SI worth fighting for?
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)
©2008 ViTAL Economy, Inc.
— 22 —
#4: Transform SI Leadership and
Governance Frameworks

Is SI worth fighting for?
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
©2008 ViTAL Economy, Inc.
— 23 —
SI’s Potential:
Climate of Unlimited Opportunity
Is SI worth fighting for?
Results in over
3.85% or better
AAGR for
NEXT 25 Years
•
•
•
•
•
•
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
•
•
•
•
•
•
Growth & prosperity realized!
©2008 ViTAL Economy, Inc.
— 24 —
Linked across the region &
highly leveraged
Active visionary leaders
Collaboration abounds
Boundaries are being
crossed
New behaviors
Global focus
Phase 1 => Phase 2 => Goals
Is SI worth Fighting for?
Phase II Structure and Strategy
Connect SI
Leadership
Board
Phase 1
Outcomes
LEADERSHIP BOARD
GE COI
Greater Egypt
COI
Southeastern
COI
Southern Five
COI
Greater Wabash
COI
GIS Asset Maps
SE COI
Broadband Strategy
S5 COI
Economic
Benchmarks
GW SOI
Regional Economic
Strategy
Healthcare COI
NP COI
Youth
Engagement
Strategy
Integrated
Finance
Strategy
41,461
Existing Jobs
>$5,000/Yr
$642 Million
New KBE Activity
1,600+ Firms
Regional Economic
Framework
Cluster
Five-Year
Measurable Goals
>$2 Billion
New Annual
Wages
Cluster
Implementation &
Funding Plan
Cluster
Healthcare
COI
Cluster
Innovation
Ecosystem
Industry
Cluster
Analysis and
Strategy
Cluster
COI Transition to Phase II
Cluster
Cluster
Cluster
Industry Clusters: See RA Chapter 7 Slide 27
©2008 ViTAL Economy, Inc.
27,298 New
Hi-Wage Jobs
Healthcare Strategy
Cluster
Network Provider
COI
2012 Goals
— 25 —
Crossing
Boundaries
Institute
+4500 Families
with Healthcare
Coverage
Lift 10,000
Citizens Out
Of Poverty
$200 Million
Information
Technology
Investment
Phase 2 Industry Cluster Focus
to Achieve SI Goals









Is SI worth fighting for?
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
All new jobs created by
Industry Clusters will be
targeted to include private
payer health benefits for
workers and families
Mining Technology
Transportation, Logistics & Warehousing
Senior Living
Education & Training (also supports all the other clusters)
©2008 ViTAL Economy, Inc.
— 26 —
Taking Control of SI’s Destiny:
Aggregate Results
GDP Average Annual
Growth Rate %
“Stay the Course”
vs.
Is SI worth fighting for?
“Change the Course”
6
5
6.89%
5.62%
4
3
3.85%
3.14%
2
M/S#5
2.19%
1.34%
1
M/S#1
0
AAGR 1977-2001
Worldwide
USA
State-wide
Southern Illinois
AAGR Connect SI
Goals 2008 - 2012
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
Source: “State of Working Illinois”, by Northern Illinois University (Nov 2005); “21st Century Workforce” (May 2004); IMF; VE research
©2008 ViTAL Economy, Inc.
— 27 —
Measurable Indicators of Progress
Towards 2012 CSI Goals
SI is a Global Broadband
Leader
Healthcare Economics
are Transformed!


Insured population
Medicaid
+10%
-26%
Medicare
+18%
60.00
% Penetration
of Population

50.00
Uninsured
54%
40.00
34%
30.00
24%
20.00
10.00

Is SI worth fighting for?
-32%
12%
0.00
2005
Southern Illinois
USA-Average
SI Becomes
an Innovation Economy
USA-Rural
Best in World
It’s Time to Go Global!
70%
U.S.
IL
SI
60%
64%
67%
12
50%
54%
U.S.
46%
40%
30%
36% 33%
20%
10%
0%
10
8
Illinois
6
SI
4
2
11%
8.4%
2.4%
0
Private Sector
Payroll & Benefits
©2008 ViTAL Economy, Inc.
Transfer Payments,
All Gov't &
Education Earnings
Exports as a % of
GDP
— 28 —
Transforming
Southern Illinois: ROI

Is SI worth fighting for?
Achieving 50% or 100% of Connect SI 2012 economic growth goals
provides substantial ROI on a five year $9M investment in Connect SI
Annual SI Return on Investment – 2012 and beyond
Percent of Goals Reached by 2012:

Annual growth in the economy

Current GRP = $17.6B

Annual growth in wages
 Current Wages = $8B

Annual growth in wage-related tax revenue


State and Local Taxes
Annual growth in assessable tax base

Historic EAV growth of 2.72% AAGR
50%
100%
$1.75B
$3.5B
$1B
$2B
$82M
$164M
+800M
+1.6B
+2.5% AAGR
+5% AAGR
What ROI is enough to gain your commitment of time, treasure
and talent to transform the SI economy now?
©2008 ViTAL Economy, Inc.
— 29 —
CSI Participants:
Vision of SI’s Future
LOOK
Construction is going on
 Downtowns look nice
 Sense of pride in our
properties; less trash, more
flowers
 More ideal retail available
 Broadband is everywhere
 Natural beauty, farmlands
are preserved
 New housing
 Maintain our historical
buildings; respect our
heritage
 Good mix of industry and
business
 Healthcare is widely
available
 Smart use of the
brownfields

FEEL
ACT
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

Source: Milestone Visioning Exercise from GW, GE and S5
©2008 ViTAL Economy, Inc.
Is SI worth fighting for?
— 30 —

Positive perception of the
area

Pride in the community

New people feel welcome,
open door feeling

We are a “20 county” region

SI is a world recognized
regional brand

Value education and a
sense of community

High school students feel
good about staying in the
region

A new cultural atmosphere

More young people bring a
vibrancy to the region

Strong small town
environment
2012: What SI Success
Looks Like


Is SI worth fighting for?
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
©2008 ViTAL Economy, Inc.
Source: ViTAL Economy Alliance
— 31 —
The Call to Action
Is SI worth fighting for?
• 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 —
©2008 ViTAL Economy, Inc.
— 32 —
“A Return to Love”
Is SI worth fighting for?
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 shrinking so 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!
©2008 ViTAL Economy, Inc.
— 33 —