Transcript Slide 1

May 5, 2010
Presentation to BSP Quarterly
Regional Economic Transformation:
Applying the BSP Approach to Community
Solutions
Outcomes Today
• Share research on regional economic transformation
• Share one practical application of the research
• Underscore your role as a BSP in positive change
Research
• What is economic transformation ?
• What do experts in regional economic transformation
profess?
• Why this research is relevant to you as a BSP?
• What are some strategies for regional economic
transformation?
• Why knowing the research is not enough?
What is economic
transformation ?
• The ability to move your community from one stable
economic environment to another.
• The ability to move your community from an
unsustainable economic environment to a sustainable
economic environment.
• Your definition…might
be assuring
your family and friends
continue to
have good jobs.
• Other definitions…
What the research says
Sustainable prosperity, wages, and productivity in advanced
economies are determined by:
1. Regional factors and characteristics.
2. Networks of companies, input suppliers, service
providers, and public institutions all contributing to
innovation capacity on a regional basis.
Purdue University
What the research says
• Regional approaches cannot be successfully mandated.
In other words… economic transformation can’t be
imposed, it takes political will within your region.
A successful approach must build on the power of
information, dialogue, networking and high-level
collaboration to form partnerships across and within both
the public and private sectors.
Purdue University
What the research says
• Existing development initiatives, programs, and
services—including those in the economic development
arena— nearly all focus on individual communities, firms,
and governmental jurisdictions. *
• At the same time, the scholarly literature and real world
observations make it abundantly clear that today's
problems and tomorrow's opportunities transcend this
narrow, compartmentalized approach.*
Purdue University
* Narrow approach: One cause is who funds local economic development ?
Strategies for Regional E.T.
From Mark Drabenstott – Past Silos and Smokestacks: Transforming the Rural Economy
in the Midwest
Caution: This research doesn’t apply to me – I work/live in an urban area. In
the new economy regions cut across the “old” jurisdictional lines.
MSU Land Policy Institute Economies 101 Training
• Seize regional economic advantages. It is all about assets.
• Act regionally to compete globally there are numerous synergies
that agglomerate at the regional level, not at a township, village, city
or county line.
• Spur innovation to transform a region’s economy, innovation is a
distinctly regional phenomenon, shaped by unique institutional and
business features that shape the region’s landscape, history and
culture.
Drabenstott…
The OECD (Organization for Economic Cooperation and
Development) 2009 and the BARCA Report conclude:
Regional economic growth rests on …
1. The network effect , being able to benefit from growth
occurring elsewhere because of transportation, energy,
IT information, and communication technologies, and
other connections.
2. Networks of complex connections to compete effectively
including clusters, engines of innovation, capital
markets, and above all regional, national and
international markets.
Why Regional Research on E.T.
is relevant to you as a BSP ?
Revisit: … economic transformation can’t be imposed, it
takes political will within your region.
A successful approach must build on the power of information,
dialogue, networking and high-level collaboration to form
partnerships across and within both the public and private sectors.
Which parts of your training and experience can be applied
to community change?
What skills do you now possess, or are now sharpened by
the training that c(s)ould be applied to helping your
communities thrive? Economic transformation is now
the new team sport.
Why knowing the research is not
enough !
• Unapplied research is an obsolete asset of the old
economy. You will see in a moment a powerful but idling
–unconnected asset. (RY)
• The new economy requires connecting the research to
application.
• The new economy is moving at unprecedented speed,
so connecting today has to happen more quickly to
assure sustainability tomorrow. (PRSC)
Engines and Transmissions
• The word connections was the key in all the research!
• With the speed of today’s economy we have to connect
our regional power (assets) to our markets
• That takes a holistic paradigm shift - in developing
dialog, trust, and strategies within and among our local
communities.
+
=
Power
Connection
Traction: Progress
Practical Application: Regional
Engines and Transmissions
YOUR SAFE PLACE
TO CONVENE
REGIONAL
LEADERS
agriculture
+
How do the
Educational
Agricultural
Chemical
Manufacturing
Work Force
Economic Dev’l. +
Financial
=
Local chemical plants
Manufacturing
LEADERS WORK
TOGETHER TO
CREATE DIVERSE
GLOBAL
PRODUCTS?
REGIONAL
ECONOMIC
TRANSFORMATION
Practical Application of the
Research
The BSP training put forth the following 5 Steps when
Demand (business) has a need:
1. You (BSP) enter a process that will respond to that need
2. You proceed through a discovery of the issues
3. You lead a design of solution for the client(s)
4. You implement the design
5. You follow up to make sure the need has been met
Practical Application of the
Research
• What if you took the 5 step BSP process and applied it to
community need?
• How could the 5 step BSP process be applied to regional
economic transformation where the need is to establish
sustainability?
• Is there a model for this that exists?
Revisit and apply: A successful approach must build on the
power of information, dialogue, networking and highlevel collaboration to form partnerships across and within
both the public and private sectors.
Purdue University
The Partnership for
Regional Solutions Center
(PRSC)
2002
2005
2008
2009
2010
SCMW! Arrival of Christine Quinn, who leading by example, starts to model
collaborative relationships among regional workforce, economic
development, education, and human services assets. . .
Arrival of L14. Brings BSP Model to SCMW! Rumor has it he was
flying between Detroit and Allegan, fell out of the plane, and SCMW took
him in! Was screaming on the way down BSP which was b*%# stinking
parachute, and after hitting his head kept repeating those letters finally
finding another use for them as part of his recovery.
SCMW Board accepts recommendation to support PRSC
Regional leaders come together on May 8th to begin focusing on regional
solutions to our challenges.
PRSC rolling out regional work in support of economic transformation.
:
Mission
To ensure that the South Central Michigan area is effectively meeting the
current and future needs of our Communities through economic transformation
by utilizing collaboration, integration and Partnerships.
“The PRSC will collaboratively develop and advance the transformation agenda
for the region.” Consensus statement PRSC regional leadership committee.
It is essential to have a Think and Do Tank that helps our already
excellent civic organizations:
 Pool their wisdom in a way they have never done before
 Find solutions to our challenges, and seize upon the
opportunities that assure our economic sustainability.
Revisit and apply: The new economy is moving at unprecedented
speed, so connecting today has to happen more quickly to assure
sustainability tomorrow Biggest premise of PRSC, convene,
communicate in a safe environment, find consensus, ACT !
Robust Interdisciplinary Representation from
the Region: PRSC Oversight Committee
Regional Members
Marcus James, Dow Automotive
Dan Phelan, Jackson Community College
Jim Lautenschleger, SCMW
Christine Quinn, SCMW
James Videto, Jackson County Commission
Scott Fleming, The Enterprise Group
Jan Maino, Jackson County Community Foundation
Jackson
KZ Bolton, Lenawee County Commissioner
Jim Gartin, Lenawee Economic Development
Corporation
Tom Gannon, United Bank & Trust
Hillsdale
Lenawee
Reb Turner, Hillsdale IDC
Christine Bowman, City of Hillsdale Economic Developer
Robert Henthorne, Superintendent Hillsdale ISD
Duke Anderson, Hillsdale Health Care Community Center
Why Begin the PRSC Now:
The Economic Tsunami
Past:
We saw an Economic Tsunami
coming but didn’t have the
collaborative infrastructure
to plan ahead:
•
Education transformation tied to future jobs
•
Regional workforce plus economic development partnerships to retain,
diversify, and attract jobs
•
Real time communication with the private sector to understand their
needs
Analysis
Analysis: Why didn’t Our Region
act sooner?
We defined our challenges
within our own county borders,
our own municipal borders and
within our own organizational domains.
Tomorrow’s Issues
“The system that learns how to quickly
retool their available workforce is the one
that will have an outstanding economic
development advantage.”
Jim L14
For level of system, focus on regions
Beware
• “The short-term challenge is to learn from the global
financial crisis and recession.”
• “ With budgets soaring higher in state capitals and in
Washington D.C. rural areas will almost certainly face
smaller public investments going forward.”
• “ More of the burden must be carried by rural places
themselves, or they must be prepared to make a highly
compelling argument for the public investments they
need.”
Mark Drabenstott.
During Traditional Economic
Cycles…
Today’s Economic Cycles
New Economy – New Paradigm
Accessing the wisdom of our best and brightest in our
region, let’s us keep pace with change. The real
Ideal…to get ahead of the curve
Economic
Development
Human Services
Education
Non Profits
Workforce
Development
Shared
wisdom
Regional Solutions
How can the PRSC help with
Change?
Speed of collaboration
versus
Speed of economic
change today
PRSC ROLE: Convene, Be A Booster Rocket,
Form Critical Mass, Find $, Drop
Into The Ocean
Practical Application: Regional
Engines and Transmissions:
SCMW Region Farm-to-Factory
PRSC: OUR SAFE
PLACE TO CONVENE
REGIONAL LEADERS
Agriculture
+
How do the :
REGIONAL
Educational
ECONOMIC
Agricultural
TRANSFORMATION
Chemical
Manufacturing
Work Force]
Economic - Development
Financial
=
Local chemical plants
LEADERS WORK
TOGETHER TO CREATE DIVERSE
GLOBAL PRODUCTS
Manufacturing
What If ?
• Baseline Public Investment. What if after ARRA we see less
funding than the base line public investment before ARRA?
• More of the burden must be carried by rural places
themselves, or they must be prepared to make a highly
compelling argument for the public investments they need. “
Mark Drabenstott
2010
ARRA
Funding
• Regions should start planning now.
2012+
Services
Level I Services
•
•
Available To regional businesses and
organizations
Initial Assessment Labor market information
•
•
•
Consulting assistance
Information and referral to services
Follow-up services
Level II Services
•
Comprehensive and specialized assessment
Plans
•
Individual and group planning
•
Short-term strategic planning
Level III Services
• Development of Co-strategic planning
• Provision of regional forecasts
• Development of asset mapping
• Product or customer diversification
• Scenario Planning
PRSC as a Convener and
Connector
The PRSC will convene regional stakeholders 4 – 6 times a year
along with setting meetings for the processing of regional solutions.
• Helping our regional leaders define what economic
transformation means for region
• Helping our regional stakeholders select areas of work
where regional solutions can be designed and
implemented
Take Aways
• Economic change is here to stay, economic
transformation is not mandated
• Your BSP training is essential to helping regions find and
maintain sustainability.
• You can help your economic developers working to help
individual companies thrive, and that training is the
foundation for you to help your community thrive
• You have the tools to help your economic developer
when she/he needs you, YOU are a trained asset to your
region.