EDI Strategy Lab Mar 2010

Strategic DoingStrategic DoingEd Morrison

Purdue UniversityUniversity of Oklahoma Economic Development Institute

Advanced Strategy Lab | Indianapolis 2010

Ed MorrisonPurdue University

University of Oklahoma Economic Development Institute Advanced Strategy Lab | Indianapolis 2010

We are moving from our Grandfather’s to our Grandchildren’s Economy

Our economic transformation requires new approaches to strategy

Strategic Doing provides the discipline to to generate “swarm innovation”

Here’s Strategic Doing in a Nutshell

We are moving from our Grandfather’s to our Grandchildren’s Economy

Our economic transformation requires new approaches to strategy

Strategic Doing provides the discipline to to generate “swarm innovation”

Here’s Strategic Doing in a Nutshell

Here’s how our Grandfather’s created wealth

Here’s what happened to our Grandfather’s economy

‣Global markets integrated

‣Costs collapsed

‣The Internet exploded

Name a company in your region that has been caught in the downdraft of our Grandfather’s economy.

What do you know about its strategy?

How could you use these insights in your business retention program?

Questions:

The iPhone production

network

Our Grandchildren’s economy is emerging...Who makes the iPhone? A network led by Apple

We are in the midst of a deep transformation

Grandfather’s EconomyGrandchildren’s Economy

Hierarchies Networks

Command and control Link and leverage

Vertically integrate Horizontally connect

Transactions Relationships

Mass Production Sustainable Manufacturing

Strategic Planning Strategic Doing

Questions:

Name a company in your region that is catching the wave of our Grandchildren’s economy.

What do you know about its strategy?

How could you use these insights in your business retention program? What would features of a strategy would you look for?

Our challenge is to find the pathways to our Grandchildren’s economy...

Connecting our many assets with “link and leverage” strategies

In our Grandchildren’s economy, we will need to find ways to align 5 types of networks

The 5 factor model of regional economic development

Ed Morrison, Purdue Center for Regional Development

Tom Peters: “It’s the firm”

Michael Porter: “It’s the cluster”New

urbanists: “It’s the place”

Richard Florida: “It’s the Creative

Class”

Questions:What are the current components of your ED strategy and how would you map them?

How would you map your current levels of investment?

Do you gain any insights from mapping your strategy? What patterns do you see? What gaps and disconnects?

Mapping a Regional Strategy using the 5 Factor Model

You can use the Five Factor model to map your current economic development strategy. By mapping your region’s strategy, you can get a good overview of how well your strategy is balanced, focused and connected.

The key components of a strategy map include:

Anchor Organizations.-- Which organizations anchor the networks in your strategy?

Strategic Outcomes.-- Where are you going with your strategy? For example, does your region have a set of clearly articulated outcomes in developing Brainpower?

Strategic Initiatives.-- For each outcome, what are the major initiatives that your anchor organizations guide? What are you doing to achieve your outcomes?

Strategic Investment.-- What is the approximate level of investment in each of the areas? You can estimate this in a variety of ways, but it is helpful to focus only on the investments that you can guide through your strategy. It’s also helpful to distinquish between operating expenses and capital expenditures. The 5 Factor Model is inclusive. Any organization or individual concerned with education, workforce or economic development is located

somewhere on the map. So, for example, educators, workforce developers and anyone concerned with individual development are in the Brainpower quadrant. Economic developers, incubator managers, and professionals concerned with business development are in the Innovation and Entrepreneurship quadrant. Professionals concerned with physical development -- infrastructure, broadband, industrial parks -- are in the Quality, Connected Places quadrant. Marketing and tourism professionals are located in the Branding Stories quadrant. Leadership programs are located in the middle, under Civic Collaboration.

Typically, you will find that the region has rarely articulated clear Strategic Outcomes that align organizations; that organizations are pursuing many disconnected initiatives that fail to link and leverage assets either within or across quadrants; that branding stories are narrow and confused; and that very little (if any) investment is being made to build the networks needed to develop, guide and revise a regional strategy.

ANCHOR ORGANIZATIONSSTRATEGIC OUTCOMES(Where are you going?)

STRATEGIC INITIATIVES

(How will you get there?)

APPROXIMATE ANNUAL

INVESTMENT

Brainpower Networks

Innovation and Entrepreneurship Networks

Quality, Connected Place Networks

Branding, Story-Telling, Identity Networks

Collaboration, Leadership Networks

Mapping a Strategy

Here’s an example of how institutions from our Grandfather’s economy are not adjusting well...High school drop-outs are a major problem across the U.S.

DadeOrlando

HillsboroughFlorida

U.S.

Nearly 104,000 students did not graduate from Florida’s high schools in 2009; the lost lifetime earnings in Florida for that class of dropouts alone total more than $27 billion.

Florida would save more than $1.5 billion in health care costs over the lifetimes of each class of dropouts had they earned their diplomas.

If Florida’s high schools graduated all of their students ready for college, the state would save almost $193.8 million a year in community college remediation costs and lost earnings.

We can start here: Our ideas about career paths are too simple...

We need transformation and innovation...

50% to 60% of teenagers are here...

70% to 80% of the jobs

are here...

We are moving from our Grandfather’s to our Grandchildren’s Economy

Our economic transformation requires new approaches to strategy

Strategic Doing provides the discipline to to generate “swarm innovation”

Here’s Strategic Doing in a Nutshell

Strategic Planning evolved to handle large hierarchical organizations

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

Our strategy challenge is like paddling a kayak in the ocean

The task requires quick strategic assessments and continuous “doing”

We are moving from our Grandfather’s to our Grandchildren’s Economy

Our economic transformation requires new approaches to strategy

Strategic Doing provides the discipline to to generate “swarm innovation”

Here’s Strategic Doing in a Nutshell

Strategic Doing guides a loosely connected network with a series of disciplined conversations

Strategic Doing keeps us focused on the big issues

Nextel video available on YouTube

Strategic Doing guides conversations...The key insight: People move in the directions of their conversations

We guide these conversations with workshop exercises....Strategic Doing Packs

Strategic Strategic Doing Doing

produces produces alignmentsalignments, links and , links and leverageleverage

Strategic DoingPlan and action together

Strategic PlanningPlan but no action

No StrategyAction but no plan

As we guide these conversations and make decisions, we generate all the components of a Strategic Action Plan...It is simple, but not easy.

Strategic Strategic Action PlanAction Plan

v. 0.1v. 0.1betabeta

Strategic Doing begins when a Core Team of leaders takes responsibility for the Strategic Doing process...

The Core Group agrees to use a Strategic Doing process to produce and update a Strategic Action Plan

The Core Team identifies focus areas of opportunities to produce dramatically better results....

Within each focus area, teams start with initiatives or projects

Projects need to be: ✓Replicable✓Scalable✓Sustainable

30 Days30 Days

The process of shaping a strategy is continuous

With Strategic Doing, there’s no separation between thinking and doing..the strategic conversations (driven by the four questions) are continuous

phosea@purdue.edu

Peggy Hosea

Strategic Doing generates Swarm Innovation...Many innovations that link and leverage a region’s assets

Disruptive Innovation Swarm Innovation

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

Core Core GroupGroup

FocuFocus 1s 1

FocuFocus 2s 2

FocuFocus 3s 3

FocuFocus 4s 4

Initiatives Initiatives

46© 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

Water, Water, Water, …

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

47© 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

Water, Water, Water, …

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

As we connect assets, something funny happens...Our opportunities actually expand

People who use Strategic Doing do not waste time asking permission...

Kokomo, IN

These folks are working on re-engagement networks for laid-off engineers and manufacturing workers...

Here’s an example of an initiative that’s part of “swarm innovation”

Here’s an example of an initiative that’s part of “swarm innovation”

Purdue guitar video available on Vimeo

Cape Girardeau, MO

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

Denver, CO

Colorado used Strategic Doing to explore new connections in its workforce system

Michigan used Strategic Doing to explore avenues past the declining auto economy

Lansing, MI

Boise, ID

Idaho used Strategic Doing in their Governor’s Workforce Development Summit

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

John Quincy Adams

We need leaders willing to step up...now

‣ Where we are: In a major economic transformation

‣ Where we are heading: To our Grandchildren’s economy and a world of open networks

‣ How we will get there: Building action-oriented networks with Strategic Doing

‣ What you can do: Choose to lead

‣ Where we are: In a major economic transformation

‣ Where we are heading: To our Grandchildren’s economy and a world of open networks

‣ How we will get there: Building action-oriented networks with Strategic Doing

‣ What you can do: Choose to lead

‣ Where we are: In a major economic transformation

‣ Where we are heading: To our Grandchildren’s economy and a world of open networks

‣ How we will get there: Building action-oriented networks with Strategic Doing

‣ What you can do: Choose to lead

Team Members

Name Organization e-mail

Strategic Doing Pack

Describe your focus area for conversation:What brings you together?

Strategic Doing Pack Completed By: Today’s Date:

Strategic Doing Question 1: What could we do together?Map your asserts...Connect them to define new opportunities

What assets do we have in our networks?People? Organizations? Resources? Experience?

What opportunities emerge when we connect these assets in new and different ways?Guide the conversation toward connections...What opportunities emerge that connect and align our assets? List as many as five opportunities that emerge from your conversation

Opportunity 1

Opportunity 2

Opportunity 3

Opportunity 4

Opportunity 5

Strategic Doing Question 2: What should we do together?Define an outcome with 3 characteristics...Define metrics to measure the characteristics...

Characteristics that define your OutcomeWhat are the characteristics or features of your outcome? How do you describe it clearly?

Metrics to measure your successHow would you measure each characteristic?

Characteristic 1 Metric 1

Characteristic 2 Metric 2

Characteristic 3 Metric 3

Define a clear outcome that connects your teamWhat do you hope to accomplish? What’s the Big Hairy Audacious Goal (BHAG)What’s your “elevator speech” to get people excited?

Strategic Doing Question 2: What should we do together?Define how you will get to your outcomeDecide on a project with 3 SMART GoalsSimple Measurable Aggressive Relevant Time sensitive

Define the projectWhat are you going to do to achieve your outcome?

Define the project pathway with SMART Goals

SMART Gaol 1: By ____________________, we will ____________________________________________________________

SMART Gaol 2: By ____________________, we will ____________________________________________________________

SMART Gaol 3: By ____________________, we will ____________________________________________________________

Strategic Doing Question 3: What will we do together?Draft an action plan

Strategic Doing Question 4: How will we learn together?Decide how you will follow -up

Who Action Step By When

Follow-up Meeting

Date

Time

Place

Internet DetailsHow will you use the Internet to stay

connected?

This Strategic Doing short form helps you keep focused on the strategic conversation. Remember, your strategic conversation is framed by four questions.

If your conversation drifts from these four questions, you can bring it back on track by asking one of the questions.

Completing the short form gives you the main components of your Strategic Action Plan. You should add a version number, because a good Strategic Action Plan needs to be revised early and often.

Thank you!

Ed Morrisonedmorrison@purdue.edu

Purdue Center for Regional Developmentwww.purdue.edu/pcrd