Transcript No Slide Title

CONNECT SI
Southern Illinois: Garden of the Gods
Readiness Assessment
Chapter 7: Roadmap to Success
January 8, 2008; revised February 17
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
—1—
©2007 ViTAL Economy, Inc.
Table of Contents

EXECUTIVE OVERVIEW: the Big Picture & Importance of Change in SI

READINESS ASSESSMENT (RA)
1. State, National & Global Trends
2. Indigenous Resources & Industry Asset Mapping
3. Enabling Environment
4. Climate of Innovation, Incubation & Entrepreneurship
5. Southern Illinois Competitiveness
6. Regional Perspectives
7.01 Readiness to Support a Long-term
Connect SI Initiative
7. Roadmap to Success
7.02 Impact of Achieving 2012 Goals
7.03 Path Forward & Overall Timeline
APPENDICES
7.04 Organizing to Succeed
—2—
©2007 ViTAL Economy, Inc.
Southern Illinois — “Garden of the Gods”
Chapter 7 summarizes key recommendations from the RA that should act as a prioritizing
filter for Connect SI’s Long-Term Economic Strategy, which is to be released by VE in February 2008
and will contain the budget and timeline for Phase 2 implementation.
Chapter 7:
Roadmap to Success
7.01 Readiness to Support a Long-Term Connect SI Initiative …. 5
7.02 Impact of Achieving 2012 Goals ………………..………….…. 8
7.03 Path Forward & Overall Timeline …………………………….. 18
7.04 Organizing to Succeed ………………………………………… 31
—3—
©2007 ViTAL Economy, Inc.
Purpose of RA Recommendations
7.0 Roadmap to Success: Introduction

Confirm SI regional readiness to launch Phase 2 of a ViTAL Economy
initiative — implementing of Comprehensive and Collaborativelyfunded Community and Economic Development Strategy

Suggest definable and measurable long-term goals

Establish priority initiatives for achieving success

Provide guidance to Connect SI with regards to expanding the base
of community champions, industry cluster leaders, and collaborative
funding

Define the Connect SI organizational framework that fosters shortterm wins and long term sustainability

Communicate VE’s vision of a robust SI future
—4—
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
As the six preceding Chapters in this RA have shown, SI has made important progress towards
establishing the foundation of a SI-wide transformation. However, unless the barriers
identified in RA are mitigated, the unique assets of SI may languish and the
rich global opportunities identified in this RA may pass the region by.
Chapter 7:
Roadmap to Success
7.01 Readiness to Support a Long-Term
Connect SI Initiative
—5—
©2007 ViTAL Economy, Inc.
SI Progress Towards Readiness
7.01 Readiness to Support a L/T Connect SI Initiative


1,000+ Connect SI participants have worked toward building a foundation for
hope through investment of tens of thousands of service hours
Collaborative funding — from local governments, corporations, NGO’s, higher
education institutions, small and large healthcare systems, state and federal
agencies — attests to the desire to manifest a robust SI future

Network provider collaboration has increased broadband availability by 64%
across SI through over $24 million of private investments

Healthcare provider collaboration has achieved significant progress towards
addressing critical skills shortages and improved health outcomes by
cooperating instead of competing

Connect SI asset mapping has uncovered opportunities to collaborate across
the Region that would not have been possible before — leading to numerous
short-term wins and long-term opportunities for growth
—6—
©2007 ViTAL Economy, Inc.
SI Barriers to Readiness
7.01 Readiness to Support a L/T Connect SI Initiative


Continued reliance on state and federal resources as primary sources of capital to
fund long-term initiatives rather than to prioritize collaborative funding alliances at
the local level — breaking old behaviors is essential
Critical mass of Connect SI champions has not yet been achieved — need to triple
its champions to >3,000 active participants, who believe that a climate of economic
opportunity is possible for Southern Illinois

Imbedded focus of funding, policy & behaviors on industrial attraction and big
employment announcements as the solution to economic growth — versus growing
small employer KBE firms (21st Century growth engines) that don’t garner big
headlines

Limited recognition of the depth, breadth and length of commitment needed at the
leadership, citizen, government, business and media levels to transform a limited
growth old economy into an innovation growth economy of unlimited opportunity

Insufficient commitment of the time, talent and resources of existing SI leadership to
expand the next generation leaders and to grow the skills necessary to
collaboratively become One Region with One Vision
—7—
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
The net effect of creating 43,300+ new jobs in Southern Illinois is enormous — in terms of
stimulus to SI’s economy, increased taxes, and overall prosperity. This section summarizes
SI regional assets, major trends, potential impact of Milestone #1 goals vs. Milestone #5 industry
cluster targets, industry cluster priorities, overall impact, and key measures of success.
Chapter 7:
Roadmap to Success
7.02 Impact of Achieving 2012 Goals
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©2007 ViTAL Economy, Inc.
7.02 Impact of Achieving 2012 Goals



Milestone #1 Goal Setting vs.
Milestone #5 Industry Cluster Targets
Milestone #1 focused on a top-down approach to goal setting:

Set overall goals for population, labor participation rates, job growth, job
improvement, etc.

Did not look at specific industry sectors

Defined a sense of urgency and a compelling vision for transforming SI economy

Communicated SI top-down goals, urgency and vision publicly on 26 Feb 2007
Milestone #5 focused on a bottoms-up approach to setting industry cluster
targets:

Assessed impact of local, regional, national and global research on achieving topdown goals

Summarized results of regional COI work efforts from Milestone#2-4b meetings
and COI work groups

Validated SI's ability to achieve and exceed 26 Feb 2007 top-down goals by
priority industry sectors

Established more targeted goals for Phase 2 implementation which would assure
achievement of Connect SI compelling vision
The following slides illustrate the impact on SI first from the original
Milestone #1 goals and then from the Milestone #5 industry cluster targets
—9—
©2007 ViTAL Economy, Inc.
Connecting SI’s Assets and Trends to 2012 Goals
7.02 Impact of Achieving 2012 Goals
Regional Assets
Global & Nat’l Trends
• Heartland of America location,
equidistant to 2/3 of U.S. markets,
central to economic expansion of the
Americas
• 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, three times the
growth in occupations and pays
double the average wage of other
jobs
• 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 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*
+
• 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
High-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
— 10 —
©2007 ViTAL Economy, Inc.
Job Creation Impact on SI Economy
based on Milestone #1 Goals
7.02 Impact of Achieving 2012 Goals
CSI-wide Milestone #1 Goals
16,379 new jobs at $43,500; 10,919 new jobs between $36,517-$40,785
Improve 41,461 existing jobs by $5,000/yr; $642M new KBE Activity = 1,600+ firms
Over $2B New Annual Wages
New
Jobs
New
Wages (M)
16,000
$752.0
New
New
Jobs
Wages (M)
Healthcare
5,000
$221.7
Tourism
2,537
$69.0

Bio-Agriculture
955
$55.6

Recreational, Marine, Hunting, Technology Products
& Services
10,688
$642.1

Innovation Ecosystem

Healthcare Products and Services
336
$10.7

Green Technologies
Construction
2,451
$133.1

Homeland Security Response and Services
Energy
1,371
$79.8

Life Sciences, Plant and Animal
Mining
1,867
$74.0

Visual and Creative Arts
Senior Living
2,095
$113.9

Advanced Manufacturing
Industry Sector
Logistics & Distribution
Global Workforce
Opportunities
Education & Training
Industry Sector
KBE
Note: New wages based upon current SI wages plus 2% AAGR from 2008-12. Total wages exceed $2B due to applying this growth rate.
— 11 —
©2007 ViTAL Economy, Inc.
7.02 Impact of Achieving 2012 Goals


64% in federal taxes
36% in state and local taxes
$12,000
SI original Milestone #1 goal of
43,300 new jobs, at increased
income, generates (per year):



Each New Projected SI Job
Generates $10,500 in Taxes
Each CSI Milestone #1 job adds
approximately $10,500 in taxes


New Jobs Increase Taxes:
Federal, State and Local
$10,000
$293 million in federal taxes
$162 million in state and local
taxes
36%
$8,000
$6,000
$4,000
64%
$2,000
Analysis includes all taxes:
income, consumption, and other
$0
State/Local
Fe de ral
Source: InterVISTAS Development Economics; Northeast Midwest Institute
— 12 —
©2007 ViTAL Economy, Inc.
Potential SI Jobs by Industry Sector (1 of 2)
(Milestone #5 Industry Cluster Targets)
• 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
Workforce
Opportunities
18,750
New Jobs
ICT investments contribute 33% to U.S. productivity
growth…this validates importance of NP-COI

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
See: RA Chapter 1
— 13 —
**Five Factors are:
• High Quality Workforce
• College or Universities
• Local Amenities
• Transportation Infrastructure
• Size
©2007 ViTAL Economy, Inc.
Potential SI Jobs by Industry Sector (2 of 2)
(Milestone #5 Industry Cluster Targets)
• 77 million retiring baby boomers present an affluent
senior living growth opportunity for SI

SI energy assets and knowledge are in the
sweet spot of energy priorities for growth
• Preferred tourism growth sectors indicate SI is
positioned for accelerated tourism growth (Chp 1.08)

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
Senior Living
3,676
New Jobs
Energy & Mining
5,680
New Jobs
Tourism
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)
See: RA Chapter 1
— 14 —
©2007 ViTAL Economy, Inc.
Taking Control of SI’s Destiny:
Aggregate Results
7.02 Impact of Achieving 2012 Goals
Average Annual
Growth Rate %
“Stay the Course”
vs.
“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
— 15 —
©2007 ViTAL Economy, Inc.
Measurable Indicators of Progress
Towards 2012 CSI Goals
7.02 Impact of Achieving 2012 Goals
SI is a Global Broadband
Leader
Healthcare Economics
are Transformed!


Insured population
Medicaid
60.00
+10%
% Penetration
of Population

-26%
Medicare
+18%
50.00
30.00
Uninsured
34%
20.00
10.00

54%
40.00
-32%
24%
12%
0.00
2005
Southern Illinois
USA-Average
SI Becomes
an Innovation Economy
U.S.
IL
SI
70%
60%
50%
40%
30%
20%
10%
0%
64%
USA-Rural
Best in World
It’s Time to Go Global!
67%
12
54%
46%
U.S.
36% 33%
10
8
Illinois
6
SI
4
2
Private Sector
Payroll & Benefits
Transfer
Payments, All
Gov't & Education
Earnings
11%
8.4%
2.4%
0
Exports as a %
of GDP
— 16 —
©2007 ViTAL Economy, Inc.
7.02 Impact of Achieving 2012 Goals
Big Impact for Southern Illinois:
10,000 Citizens No Longer in Poverty!
SI Poverty Rates When 2012 Goals Are Reached
2000 Poverty
2012 Poverty
30.0%
25.0%
20.0%
U.S. Average
12.7% (2000)
15.0%
10.0%
Illinois Average
10.7% (2000)
5.0%
Ha
rdi
n
Ja
ck
so
n
Je
ffe
rso
n
Jo
hn
so
n
Ma
ss
ac
Po
pe
Pu
l as
ki
Ra
nd
olp
h
Sa
lin
e
Un
ion
W
hit
e
W
illia
ms
on
Fr
an
kl i
n
Pe
rry
W
ay
ne
Ed
wa
rds
W
ab
as
h
Ale
x
an
de
r
Ga
lla
tin
Ha
mi
lto
n
0.0%
2000 SI Poverty: # of SI Counties:
1 - lower than Illinois poverty rate
4 - lower than U.S. poverty rate
14.4%
Poverty
Decrease
2012 SI Poverty: # of SI Counties:
4 - lower than Illinois poverty rate
10 - lower than U.S. poverty rate
Source: 2000 US Census; Center for Rural Health & Socal Services; VE analysis
— 17 —
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
This section outlines the key steps in transforming SI’s economy from a Climate of Limited
Opportunity to a Climate of Unlimited Opportunity. The “Collaboration” theme discussed
throughout this RA is fundamental to SI’s future success — not just in leveraging the unique assets
of the Region, but in demonstrating the willingness of all sectors (public & private) to be integral
participants in manifesting that success.
Chapter 7:
Roadmap to Success
7.03 Path Forward & Overall Timeline
— 18 —
©2007 ViTAL Economy, Inc.
Actions Fundamental to SI Economic Prosperity (1 of 2)
7.03 Path Forward and Overall Timeline



Address SI Dilemma — transition from a Climate of Limited Opportunity to a
Climate of Unlimited Opportunity

SI citizens must believe that they have the ability to take control of their destiny

Education of SI uniqueness and opportunity is critical to turning belief into action
Increase SI’s private sector contribution from 46% to national level of 65%;
reduce SI’s dependence on public sector income from 54% to national level of
36% by 2012

Critical to establish an SI climate of innovation versus a climate of risk-aversion

Requires a 30% increase in private sector wage contribution to personal income
Improve global export literacy and double global export value in SI ‘s economy



Required to increase flow of external capital into SI, hence investment attraction
Leverages SI indigenous resources — from Sow Our Own to Grow Our Own
Implement economic strategies to grow SI economy at 3.85% vs 1.34% annually


Increased prosperity is dependent on accelerated growth
SI infrastructure investments cannot be met without increasing economic growth
— 19 —
©2007 ViTAL Economy, Inc.
Actions Fundamental to SI Economic Prosperity (2 of 2)
7.03 Path Forward and Overall Timeline




Change economic development focus from legacy (manufacturing &
commodity agriculture) to KBE global products & services

This is where the high value, high wage job growth opportunities abound

Emphasizes growth of firms not negatively impacted by Illinois weaknesses
Grow breadth and depth of Connect SI visionary leaders & champions

Commitment to a compelling long-term Vision by more leaders is critical

Critical mass of 3,000+ champions is critical to sustain this fundamental change
Expand base of collaborative funding support for Connect SI strategies

Long-term consistency in strategy focus is dependent on regional control

“Cavalry is coming” mentality must be dispelled to transform expectations
Support a long-term regional framework to guide regional growth

Regional collaboration can only take place through a regional framework

Access to a broader base of financial, data and human resources is assured
— 20 —
©2007 ViTAL Economy, Inc.
7.03 Path Forward and Overall Timeline
SI’s Big Dilemma:
Climate of Limited Opportunity
Resulted in
only 1.35%
AAGR for last
25 Years
•
•
•
•
•
•
•
•
•
•
Mindset: willingness to accept mediocrity and
lack of a sense of excellence
Insufficient climate of collaboration and trust
making change very difficult
Continuing belief that “the cavalry is coming”
despite proof to the contrary
Losing the best and brightest
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/funding priorities reinforce old
economy strategies, and inhibit new ones
•
SI’s
Current
State
•
Fragmented and
poorly leveraged
Primary focus on
local opportunities
Insufficient # of
visionary leaders
Too many political
boundaries
SI’s future hangs in the balance!
— 21 —
©2007 ViTAL Economy, Inc.
7.03 Path Forward and Overall Timeline

Lack of collaboration is hampering prosperity




The recent expansion of broadband service, supported by a clearly defined goal is
positioning SI for KBE growth and attraction — coupled with an investment in
connectivity literacy
SI’s natural environment is neither widely respected nor being leveraged


IL’s court system is rated as unreasonable to business
Multiple government and taxing districts cause a confusing business environment
Connectivity expansion is a marketable opportunity but literacy must increase


Creates a climate and reputation of conflict and distrust
Results in an inability to fund or achieve project success due to lack of resources
Listless business climate for retention and attraction


SI Enabling Environment Challenges
are at the Core of the SI Dilemma
The region has the largest concentration of natural environment assets in the Midwest, but is not reaping the benefits
Reluctance to change will guarantee an atmosphere of dependency


The new economy is changing faster than ever before primarily driven by innovation
and technological advancements that will not wait for individuals and companies to
keep pace
Rural regional economies that can effectively meet the workforce needs and
business demands of a KBE economy will be the envy of others
— 22 —
©2007 ViTAL Economy, Inc.
7.03 Path Forward and Overall Timeline

Enabling Environment Recommendations
Are The Solution To SI Dilemma
Improving the enabling environment of SI is the key to addressing the SI dilemma

The results of the Readiness Assessment clearly demonstrate that SI behavior and mindset is the
only thing standing in the way

Without the changes proposed in this chapter, SI will be far less able to leverage its unique
indigenous resources to take advantage of current global and national trends

Our primary recommendations:
#1 — Implement a regional Multi-Media Branding Strategy for internal and external markets
#2 — Create a Crossing Boundaries Institute linked into existing leadership programs
#3 — Implement a Youth Engagement Strategy
#4 — Incorporate Collaborative Funding as a fundamental part of the DNA of SI
#5 — Establish a Comprehensive SI Data Mining Portal that is a model for Illinois
#6 — Implement Broadband Connectivity Infrastructure and Digital Literacy Strategy
#7 — Develop an SI Livable Community Forum
The successful transformation of SI from a limited to an unlimited growth economy
depends upon the ability of the Region to change its thinking & behaviors
— 23 —
©2007 ViTAL Economy, Inc.
7.03 Path Forward and Overall Timeline
SI’s Potential:
Climate of Unlimited Opportunity
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
SI’s
Future
State
•
•
•
•
•
•
Growth & prosperity realized!
— 24 —
Linked across the Region
& highly leveraged
Active visionary leaders
Collaboration abounds
Boundaries are being
crossed
New behaviors
Global focus
©2007 ViTAL Economy, Inc.
Phase 2 Priorities for Success (1 of 2)
7.03 Path Forward and Overall Timeline
1. Expand NP-COI connectivity broadband deployment with professional support for an
additional twelve months; this includes expansion of enterprise applications for healthcare,
education, R&D and tech transfer research collaboration with private sector
2. Broaden base of Connect SI champions and gain re-commitment of Phase 1 champions.
Repeat January-June 2006 road show using RA data to garner additional support
3. Invest robust resources in a collaborative funding strategy to raise $1.5 million in cash
and in-kind resource commitments to Connect SI for FY 2008 and for FY 2009
4. Establish Connect SI as a regional data portal for SI. Local municipalities are already
benefiting from regional data assembled by Connect SI, which has helped local economic
development professionals attract businesses to SI. There is no other long-term reliable
source for consistent, accurate and integrated data for SI
5. Select four industry clusters for Phase 2 research and implementation in 2008. Recruit
private sector leadership teams during first quarter of 2008 for each industry cluster. Identify
experienced rural industry cluster research teams to guide cluster teams
6. Commit to a sense of urgency that is communicated region wide. Educate citizens and
leaders on the economic realities and need for change today rather than tomorrow. Invest in
Connect SI marketing strategy in support of broadband, champion development,
collaborative funding and private sector recruitment goals
— 25 —
©2007 ViTAL Economy, Inc.
Phase 2 Priorities for Success (2 of 2)
7.03 Path Forward and Overall Timeline
7.
Leadership Advisory Committee agrees to resource the Healthcare COI to
aggressively achieve the transformative qualitative and quantitative goals it established in
Phase 1
8.
Focus four regional COI’s on recruitment of industry cluster participants for
prioritized SI-wide industry clusters. Have COI leadership guide implementation of at least
two short term win opportunities every six months, which are connected to achieving COI
goals
9.
Fund and establish a collaborative leadership institute to address critical shortage of
visionary leadership across SI. Include youth engagement in this, so that youth brain drain
can be successfully addressed for the long-term
10.
Review RA findings and work with ViTAL Economy to integrate RA findings into the
SI-wide economic strategy to be released in 1st quarter 2008
11.
Commit to obtain and invest resources required to implement Connect SI Phase 2
economic strategy and achieve qualitative and quantitative goals starting April 1 2008.
This includes approval of Connect SI Phase 2 implementation timelines, funding and
professional resources
12.
Develop a 501(c)(3) framework for Connect SI, so that independent government and
foundation funding, that cannot be received by SIU or ManTraCon, can be accessed. This
is particularly critical with regard to approved legislation dealing with digital divide funds
from state and federal sources
— 26 —
©2007 ViTAL Economy, Inc.
Phase 2 Industry Cluster Priorities for Achieving
2012 Connect SI Goals
7.03 Path Forward and Overall Timeline

The following Industry Clusters emerged from the extensive COI asset
mapping and opportunity assessment activities during Phase 1:

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
— 27 —
All new jobs created by
Industry Clusters will be
targeted to include private
payer health benefits for
workers and families
©2007 ViTAL Economy, Inc.
Collaborative Investment Rationale
7.03 Path Forward and Overall Timeline
• Collaborative funding of Connect SI initiatives is one of the most critical
determinants of SI’s ability to sustain a long term transformation of Southern
Illinois’ economy
• Successful collaborative funding starts at the local and regional level and is
only then matched by state, federal and foundation investments — this is
critical to reversing SI’s decades long sense of external dependency
• ViTAL Economy initiatives, which commit to collaborative funding as a core
principle, experience anywhere from a 5:1 to 12:1 ratio of external-tolocal/regional investments — the average ratio over 15 years is ≈7:1
• A $1,500,000 annual collaborative funding goal is recommended — a strategy
for accomplishing and exceeding this goal is on the following slide
• Connect SI leadership commitment to this strategy is critical. While ViTAL
Economy can help guide and train leaders to implement this strategy, it must
be locally led by a committed group of SI-based leaders
— 28 —
©2007 ViTAL Economy, Inc.
Collaborative Funding Strategy: Goals
7.03 Path Forward and Overall Timeline
# ‘08/‘09/‘10
$/Year
FY 2008
FY 2009
FY 2010
5/7/9
$5,000
$25,000
$35,000
$45,000
Mid-Size Local Government
20/25/30
$2,500
$50,000
$62,500
$75,000
Moderate Size Local Gov’ts
30/40/50
$1,000
$30,000
$40,000
$50,000
100/120/140
$500
$50,000
$60,000
$70,000
SI Public Citizens
2K/3K/4K
$25
$50,000
$75,000
$100,000
Gen’l Business & Industry
20/30/40
$1,000
$20,000
$30,000
$40,000
Healthcare COI
N/A
$75,000
$75,000
$75,000
$75,000
Network Provider COI
N/A
$75,000
$75,000
$75,000
$75,000
20/30/40
$5,000
$100,000
$150,000
$200,000
Private Sector Cluster Match
4/4/4
$60,000
$240,000
$240,000
$240,000
Southern Illinois University
N/A
$200,000
$200,000
$200,000
$200,000
50/75/100
$500
$25,000
$37,500
$50,000
State Government
N/A
N/A
$300,000
$350,000
$400,000
Federal Government
N/A
N/A
$300,000
$350,000
$400,000
Foundations
2/4/6
$50,000
$100,000
$200,000
$300,000
In-Kind Services
N/A
N/A
$250,000
$250,000
$250,000
N/A
N/A
$1,890,000
$2,230,000
$2,570,000
Source
Large Local Governments
Small Local Governments
Financial Service Firms
Not-for Profits
Total Investment/Year
— 29 —
©2007 ViTAL Economy, Inc.
Phase 2 Implementation Timeline
7.03 Path Forward and Overall Timeline
PHASE 2
Implement Collaborative Funding ($1.5 Million/year)
V
I
S
I
O
N
Extend Broadband Connectivity (NP COI)
Recruit More Champions & Leaders (>3,000)
Implement COI Action Plan (through 2012)
Develop/Implement Regional Framework
Develop/Launch Collaborative Leadership Institute
Implement Regional Branding Strategy
&
Form/Implement Industry Cluster Strategy (10-12 @ 4 minimum/year)
Establish SI Regional Data Portal
G
O
A
L
S
Implement Youth Engagement Strategy
Develop/Implement Innovation Ecosystem
Develop/Launch Integrated Finance Strategy
Set Up SI Livable Community Forum
Jan
2008
Year Two
Jan
2009
Year Three
— 30 —
Jan
2010
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
One of the most powerful organizing concepts to deploy in Southern Illinois is the “Starfish” —
described in Chapter 3.05 Adaptability Slide 73. This approach can greatly facilitate collaboration,
leverage assets spread across SI, and provide an effective pathway around other cultural barriers.
This Section applies a starfish-hybrid to a SI Regional Framework and an Innovation Eco-System
— ending the RA with the COIs & ViTAL Economy’s vision of SI’s future.
Chapter 7:
Framework for Success
7.04 Organizing to Succeed
— 31 —
©2007 ViTAL Economy, Inc.
Recommended Connect SI 501(c)3
Regional Framework: Starfish Hybrid**
7.04 Organizing to Succeed
Connect SI
501(c)3 Board
Collaborative
Funding
Partners
Connect SI
Strategy
Network Providers
COI Leadership &
Sub-Teams
Industry
Cluster
Steering
Committee
Connect SI
Implementatio
n
Partners
GE COI
Leadership
Team
GW COI
Leadership
Team
Healthcare
COI Leadership
& Sub-Teams
S5 COI
Leadership
Team
SE COI
Leadership
Team
Industry
Cluster “A”
GE Action
Team “A”
GW Action
Team “A”
S5 Action
Team “A”
SE Action
Team “A”
Industry
Cluster “B”
GE Action
Team“B”
GW Action
Team“B”
S5 Action
Team“B”
SE Action
Team“B”
Industry
Cluster “C”
GE Action
Team “C”
GW Action
Team “C”
S5 Action
Team “C”
SE Action
Team “C”
Industry
Cluster “D”
GE Action
Team “D”
GW Action
Team “D”
S5 Action
Team “D”
Future GE
Other
GE
Action
Teams
Action Teams
Future GW
Other
GE
Action
Teams
Action Teams
REGION-WIDE
FOCUS
Future S5
Other
GE
Action
Teams
Action Teams
COI-Specific FOCUS
**Source: Starfish and the Spider, Brafman & Beckstrom 2006
— 32 —
Connect
SI
SE Action
Team “D”
Strategy
Future SE
Other
GE
Action
Teams
Action Teams
Cross-Regional Collaboration
©2007 ViTAL Economy, Inc.
7.04 Organizing to Succeed
Recommended Connect SI
501(c)(3) Regional Framework: Notes
• Framework insures that long term success is not
dependent on what government is in power
• Connect SI:
o Advisory board positions are as currently designated with addition
of two industry cluster reps from the Industry Cluster Steering
Committee
o Staff and leadership are responsible for collaborative funding &
CED strategy
o Project implementation occurs through regional collaborative
partners
o Remains an initiative sponsored by SIU as a regional partner
• Region specific activities managed by regional COIs
• SI Region-wide activities serving all COIs managed by
Connect SI 501(c)(3)
Source: Starfish and the Spider, Brafman & Beckstrom 2006
— 33 —
©2007 ViTAL Economy, Inc.
7.04 Organizing to Succeed
SI Entrepreneurs
Served by Shared
Regional Network
Of Incubator
Centers of Excellence
Life Cycle
Equity and Debt
Finance Resources
Global Best Practice
Technical Support
Teams
Broadband-Enabled
Economic Growth Can Be Greatly Stimulated by
Implementing an Innovation Eco-System™
Centralia EC
Ethanol
Research
Center
W. Frankfort
Business
Incubator
SIUE-EC
Edwardsville
International
Incubator
Medical
Technology
Incubator
GW Incubator
SE SBDC
Coal Research
Center
GE Incubator
Tech Transfer
Dixon Springs
Ag-Tech
Incubator
SIU Medical
School
SWI Retail Incubator
Entrepreneur
Center
IMEC
S5 SBDC
SI Incubator, Finance & Innovation Starfish Network
— the KBE-Engine of Connect SI —
Source: Starfish and the Spider, Brafman & Beckstrom 2006
— 34 —
©2007 ViTAL Economy, Inc.
Innovation Eco-System™: Benefits
7.04 Organizing to Succeed
2
1
GOAL: to generate entrepreneurial
ventures within the economy
served by the Ecosystem
A self-sustaining system whose individual
members benefit from each others
participation via symbiotic relationships
3
Composed of a series of connected but
separately controlled innovation assets:
SI takes on gazellelike behaviors
(speed & agility)
that attract and
retain
entrepreneurs,
venture capitalists
and students
7
• Business Incubators
• Technology Transfer Resources
• University Research Centers of Excellence
• Entrepreneur and Innovations Assets
• Workforce Development Assets
• SBDC Resources
• Community Colleges
• Integrated Equity & Debt Finance Framework
6
4
The region exhibits network
effects establishing lock-in
making the cost of moving
prohibitive
5
Relationships established across
different industries become mutually
beneficial and self-sustaining
— 35 —
The SI Ecosystem becomes
a first-mover/pioneer that is
very difficult for other
regions to emulate
©2007 ViTAL Economy, Inc.
CSI Participants: Vision of SI’s Future
7.04 Organizing to Succeed
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
— 36 —

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
©2007 ViTAL Economy, Inc.
VE’s Vision of SI’s Future
7.04 Organizing to Succeed



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 & lack of access becomes an asset; instead of
forgotten by Chicago, Springfield and Washington, SI is a land & lifestyle that is
treasured, respected, sought after and envied — there is only one SI in the World
SI communities see themselves in a new light — are respectful of their place, 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
— 37 —
©2007 ViTAL Economy, Inc.