Strategic Doing: A Framework for Economic Development Strategy

Strategic Doing:

A Framework for Economic Development StrategyScott Hutcheson, Ph.D.

ANZRSAI 38th Annual Conference

December 2014 - Christchurch, New Zealand

Hierarchy of Complex Systems

• Social Organizations – economics, education, politics

• Individual Human – language capacity, knowledge accumulation, design and use of tools

• Animal – mobility, information processing

• Plants – viability

• Open Systems – matter, energy

• Cybernetics – computers

• Clockworks – engines

• Frameworks – buildings, cells

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mp

lex

ity

Boulding, K. (1956). General systems theory—the skeleton of science. Management Science 2(3): 197-208.

Hierarchy of Complex Systems

• Social Organizations – economics, education, politics

• Individual Human – language capacity, knowledge accumulation, design and use of tools

• Animal – mobility, information processing

• Plants – viability

• Open Systems – matter, energy

• Cybernetics – computers

• Clockworks – engines

• Frameworks – buildings, cells

Co

mp

lex

ity

Boulding, K. (1956). General systems theory—the skeleton of science. Management Science 2(3): 197-208.

Hierarchy of Complex Systems

• Social Organizations – economics, education, politics

• Individual Human – language capacity, knowledge accumulation, design and use of tools

• Animal – mobility, information processing

• Plants – viability

• Open Systems – matter, energy

• Cybernetics – computers

• Clockworks – engines

• Frameworks – buildings, cells

Co

mp

lex

ity

Boulding, K. (1956). General systems theory—the skeleton of science. Management Science 2(3): 197-208.

Strategy10

The employment of battles to win the war. - General Carl von Clausewitz

I will build a motor

car for the great

multitude. It will be

so low in price that

no man will be

unable to own one.

- Henry Ford

Source: Bently Historical Library, Josephine Fellows Gomon Papers, Box 10,

draft manuscript, The Poor Mr. Ford.

In 1928 Henry Ford’s River Rouge

Plant in Dearborn, Michigan

became the world's largest

industrial complex, pursuing vertical

integration to such an extent that it

could produce its own steel. In this

year he also established

“Fordlandia” his rubber tree

plantation in the Amazon Rainforest

The Ford Motor Company

Metro-Goldwyn-Mayer

71 cast and crew

members all working

for MGM

14

15

What do the military and vertical business

models have in common?

16

What do the military and vertical business

models have in common?

17

Metro-Goldwyn-Mayer

Metro-Goldwyn-Mayer

Metro-Goldwyn-Mayer

Metro-Goldwyn-Mayer

Cast and crew of

2,000+, hardly any

working for MGM

iPhone

Strategic

planning often

spoils strategic

thinking.

- Henry Mintzberg

24

Strategic Doing enables people to

form action-oriented collaborations

quickly, move them toward

measurable outcomes, and make

adjustments along the way.

Thinking, Behaving, & Doing

in New Ways

Thinking in New Ways

Strategic

Doing

Leverages the

Value of a

Network

10 nodes, 9 connections

10 nodes, 45 connections

Grandfather Grandchildren

Networks move us to new

opportunities

Networks move us to new

opportunities

http://www.slideshare.net/linkedin/mandel-linked-in-connections-reportnov-2014

The “most-

connected”

metro regions

had more than

double the job

growth of the

“least-

connected”

metro areas.

We Create Networks by Connecting Assets

Kretzmann, J. & McKnight, J. (1999).

Building Communities from the Inside

Out: A Path Toward Finding and Mobilizing

A Community’s Assets.

We Create Networks by Connecting Assets

We Create Networks by Connecting Assets

We Create Networks by Connecting Assets

Strategic Doing Recognizes That We Can’t

Predict the Future

Dr. Lowell Catlett

Economist, Futurist, and Professor

New Mexico State University

Strategic Doing Recognizes That We Can’t

Predict the Future

One study looked at 7,000 different economic

predictions and found 47% of them was correct.

Strategic Doing Recognizes That We Can’t

Predict the Future

Flip a coin and you beat the economists by 3%.

Behaving in New Ways

Strategic Doing Accelerates Collaboration

Turf

Trust

TIME

Sharing

Resources

Sharing

Information

Mutual

Awareness

Co-Execution

Co-Creation

Acknowledgment Exploration Cooperation Collaboration Innovation

Adapted from Collaboration Continuum from ACT for Youth

Building trust takes doing

Trust powers innovation

Innovating networks produce

increasing returns

Mathematics says the sum value of a

network increases as the square of the

number of members. In other words, as

the number of nodes in a network

increases arithmetically, the value of the

network increases exponentially.* Adding

a few more members can dramatically

increase the value for all members.

- Kelly, K. (1999). New Rules for the New

Economy

Prosperity is not “winner take all”

Source: Clipart by C Charley-Franzwa -

http://clipartof.com/50191

Doing in New Ways

Strategic Planning Strategic Doing

Strategic Doing is a strategy

protocol built for networks

Alignments emerge

Strategy

answers two

questions.

A 30/30 commitment drives

learning

Strategic Doing Focuses on Small Wins to

Achieve Big Goals

Doubt and dwindling

motivation comes on

quickly when a big

goal is missed. On

the other hand, small

wins lead to the

progress principle -

more confidence,

high performance,

and motivation to

keep moving

forward.

- Teresa Amabile

• Think about strategy development strategy

differently

• Accelerate the collaborations

• Create and guide agile, asset-based

strategic action plans to meet a progressive

series of clearly defined objectives

Addressing Economic

DevelopmentStrategy

Strategic Doing

began in Oklahoma

City in1993

Oklahoma City Today

Photo by: Luke Barrett

Kokomo, Indiana

Kokomo, Indiana

Workforce Innovations in

Regional Economic Development

- Designed & guided 60+ collaborations

- Over 100 partner organizations

- Tracked over 200 metrics

- Hired 2.5 people to manage it all

- 80% of initiatives sustained

Kokomo, Indiana2008 = 3rd Fastest Dying US City

2014 = 3rd Fastest Growing US City

The key to success was that rather

than focusing on investing in the

right projects, we focused on

investing in the right collaborations

Is it…

scalable,

replicable,

sustainable?

Practicing Strategic Doing

70

• Local & Regional Economic Development

• Workforce Development

• Community & Neighborhood Development

• Cluster Development

• Local/Regional Food Systems

• Community Health

• Innovation Ecosystem Development

• Strategic Alliances

• Inter-Unit Organizational Collaboration

• National Associations

Practicing

Strategic

Doing

The Scholarly Evidence for Strategic Doing

Hutcheson, S. (2014). Effective Strategy in

Local & Regional Development.

Hutcheson, S. (2914). Effective Strategy Making

In Economic & Community Development.

Morrison E, & Hutcheson, S. (2014). Accelerating

Civic Innovation with “Strategic Doing.”

Purdue’s partners in Strategic Doing

To know what you’re

going to draw, you

have to begin drawing.- Pablo Picasso

To learn more and to connectScott Hutcheson, Ph.D.

Purdue University

hutcheson@purdue.edu

www.pcrd.purdue.edu

www.strategicdoing.net

www.facebook.com/stratdoing

www.slideshare.net/jshutch

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