The Coffee Bean & Tea Leaf(CBTL), Business strategy case study
Cetys Mexico 2
1. New Maps for a Flat World:
New Roles for Higher Education in
Regional Economic Development
November 3-4, 2008
Ed Morrison
Purdue Center for Regional Development
Institute for Open Economic Networks (I-Open)
2. Economic Development in 60 seconds
Economic Development in an Nutshell
Good Money: Increase the volume of
1 income into the region with competitive
traded businesses Rest of the
Neutral Money: Increase the velocity World
2
of money circulating in the region with
local businesses to create more jobs
1
3 Bad Money: Reduce income leaks Sales
by reducing outside purchases,
workers who move out, and
students who drop out Traded
Another
Businesses
region
2
Purchases and paychecks
Brain Drain and
Purchases
Local Businesses 3
Your eco Drop Outs
nomy Dependency
Source: Ed Morrison,
David Morganthaler
3. Economic Development in 60 seconds
Economic Development in an Nutshell
Good Money: Increase the volume of
1 income into the region with competitive
traded businesses Rest of the
Neutral Money: Increase the velocity World
2
of money circulating in the region with
local businesses to create more jobs
1
3 Bad Money: Reduce income leaks Sales
by reducing outside purchases,
workers who move out, and
students who drop out Traded
Another
Businesses
region
2
Purchases and paychecks
Brain Drain and
Purchases
Local Businesses 3
Your eco Drop Outs
nomy Dependency
Source: Ed Morrison,
David Morganthaler
4. Economic Development in 60 seconds
Economic Development in an Nutshell
Good Money: Increase the volume of
1 income into the region with competitive
traded businesses Rest of the
Neutral Money: Increase the velocity World
2
of money circulating in the region with
local businesses to create more jobs
1
3 Bad Money: Reduce income leaks Sales
by reducing outside purchases,
workers who move out, and
students who drop out Traded
Another
Businesses
region
2
Purchases and paychecks
Brain Drain and
Purchases
Local Businesses 3
Your eco Drop Outs
nomy Dependency
Source: Ed Morrison,
David Morganthaler
5. Economic Development in 60 seconds
Economic Development in an Nutshell
Good Money: Increase the volume of
1 income into the region with competitive
traded businesses Rest of the
Neutral Money: Increase the velocity World
2
of money circulating in the region with
local businesses to create more jobs
1
3 Bad Money: Reduce income leaks Sales
by reducing outside purchases,
workers who move out, and
students who drop out Traded
Another
Businesses
region
2
Purchases and paychecks
Brain Drain and
Purchases
Local Businesses 3
Your eco Drop Outs
nomy Dependency
Source: Ed Morrison,
David Morganthaler
6.
7. Every few hundred years in Western history, there
occurs a sharp transformation.
Peter Drucker (1986)
8. Strap on your goggles...
Our story begins with the emergence of our
Grandfather’s economy
13. A downward cycle of economic development
accelerates with a deteriorating civic environment
Business base Deteriorating Civic
gets weaker Entrepreneurial Environment
activity
declines
Businesses
shrink or leave,
start-ups do Higher taxes
not arise Well-paid jobs
decline Tax base erodes
Skilled labor
supply shrinks Skilled people
move out
Civic amenities and
infrastructure
deteriorate
Brain drain as Quality of life
young people deteriorates
drop out and
move out Place develops a
bad reputation
Source: Ed Morrison
14. A prosperous cycle of economic development
accelerates with civic collaboration
Build innovation Collaborative
and entrepreneur Civic Environment
networks Entrepreneurial
activity
increases
New firms emerge,
established firms
grow Well-paid jobs
increase
Lower taxes
Tax base grows
Skilled labor
supply grows
Skilled people
move in
Civic amenities
and infrastructure
improves
Quality of life
Build brainpower improves
with 21st century
work skills Build a quality,
connected place
Source: Ed Morrison
15. Our Grandfather’s economy
created enormous wealth through innovation
Video available at:
http://www.open-video.org/details.php?videoid=4655
16. Our Grandchildren’s economy is emerging
around networks
Video available at:
http://www.youtube.com/watch?v=_MeJ0dHIEfA
17. The S-Curve caught up to our
Grandfather’s economy
‣ Global markets
integrated
‣ Costs collapsed
‣ The Internet exploded
21. The networks leading to our Grandchildren’s
economy are on this base map
Brainpower Innovation
21 Century Talent Entrepreneurship
Networks
Civic
Collaboration
Quality,
Connected Branding
Places Experiences
22. The networks leading to our Grandchildren’s
economy are on this base map
1. Brainpower networks Brainpower
21 Century Talent
Innovation
Entrepreneurship
Networks
2. Innovation and entrepreneurship
networks Civic
Collaboration
3. Quality place networks
4. Branding networks Quality,
Connected Branding
5. Collaboration networks
Places Experiences
23. Open Source Economic Development
Our economy is undergoing fundamental shifts. The integration of global markets, coupled with the explosion of the Internet
in the late 1990's, has created a quot;perfect stormquot; of deep economic change. To thrive in this environment, regional
economies need balanced strategies that encourage new conversations, networks, and investments in the following areas:
Strengthening Brainpower.-- In today's global economy, brainpower provides the only basis for sustainable competitive
advantage. This fact presents us with some clear imperatives. Advances in brain science tell us that, in a knowledge
economy, workforce development begins with a pregnant mother. Every child needs pre-school education and should be
able to read and comprehend well by the third grade. Dropping out of high school creates a lifetime economic disability.
Connecting innovation and entrepreneurship
Innovative Businesses networks.-- These networks convert brainpower into
wealth through new products, new services, new
markets. Innovation provides the process and
entrepreneurship provides the skills to translate ideas
Brainpower Innovation into prosperity.
21 Century Talent Entrepreneurship
Networks
Building quality, connected places.-- Smart people
can live anywhere. They will choose to live in regions
Dynamic Clusters
that respect sound principles of physical development.
Creative People
Civic
Equally important, quality places have thick
Collaboration
connections to other people, other markets.
Promoting an effective brand.-- Prosperous regions
have positive stories to tell. These stories create a
Quality,
Connected Branding
unique experience, a special identity, a common
Places Stories understanding of core strengths, a shared view of
future opportunities.
Strengthening civic habits of purposeful
Hot Spots dialogue.-- In a globally connected economy, no one
can go it alone. Prosperous regions will develop civic
habits of thinking and acting together. Building
collaboration and trust carries real competitive
Ed Morrison developed Open Source Economic Development. It is advantages: the regions that collaborate will spot
freely available under a Creative Commons license. To view a copy of
this license, visit http://creativecommons.org/licenses/by/3.0/
opportunities and move more quickly than regions that
do not.
24. The “theory of change” behind Open Source Economic
Development focuses on aligning networks
The challenge is to build and support
productive, focused networks around strategic issues
Collaboration
Innovation Productivity Prosperity
Brainpower
Innovation networks
Quality, connected places
Effective branding
Collaborative leadership
Accelerating cycle
Source: Ed Morrison, based on Council of Competitiveness
26. Open Source Economic Development
leverages the power of networks
What’s the value of one cell phone?
What’s the value of ten?
27. The “theory of change” behind Open Source Economic
Development focuses on aligning networks
The challenge is to build and support
productive, focused networks around strategic issues
Collaboration
Innovation Productivity Prosperity
Brainpower
Innovation networks
Quality, connected places
Effective branding
Collaborative leadership
Accelerating cycle
Source: Ed Morrison, based on Council of Competitiveness
29. Open Source Economic Development
leverages the power of networks
What’s the value of one cell phone?
What’s the value of ten?
30. Part 1: Finding the New Pathways:
Workforce Leadership in the Age of Networks
Brainpower Innovation
21 Century Talent Entrepreneurship
Networks
Civic
Collaboration
Quality,
Connected Branding
Places Experiences
31. Part 1: Finding the New Pathways:
Workforce Leadership in the Age of Networks
Brainpower Innovation
21 Century Talent Entrepreneurship
Networks
Civic
Collaboration
Quality,
Connected Branding
Places Experiences
33. Here’s a simple definition of Brainpower
Workforce development coordinates the
development and delivery of brainpower
to competitive companies
34. Our Starting Point: Our Grandfather’s pathways
are too rigid, too simple or wrong
K through One
12 Career
K through 4 Years of One
12 College Career
35. Our Starting Point: Our Grandfather’s pathways
are too rigid, too simple or wrong
K through One
12 Career
K through 4 Years of One
12 College Career
36. Here’s a new Brainpower base map
Certificates
Pre- K through 2 years Careers
K 12
4 years
$10.00
per hour
Entry
level
Dependency
Cycle Working
poor
37. Old, rigid thinking produces too many people
below the line.
Certificates
Pre- K through 2 years Careers
K 12
4 years
$10.00
per hour
Entry
level
Dependency
Cycle Working
poor
38. Old, rigid thinking produces too many people
below the line.
Certificates
Pre- K through 2 years Careers
K 12
4 years
$10.00
per hour
Entry
level
Dependency
Cycle Working
poor
39. Remember our starting point: Overcoming some
potent myths from our Grandfather’s economy
The Smart Ones
The Not So Smart Ones
41. We need innovations to expand flexibility and options
Pre School Primary/Elementary/Middle School High School College/University
Community
Tech Prep Work
College
Ages
K-2 3-5 6-8
0-4
College Prep 4 Year College/University
Reading by the end of
Career Pathways
Grade 2
Science and Math Education
Character Education
Entrepreneurship Education
Drop out prevention
Continuous teacher development
42. Open Source Economic Development
develops networks with tight cores and
open boundaries
Forum
43. Open Source Economic Development
develops networks with tight cores and
open boundaries
Forum
44. Open Source Economic Development
develops networks with tight cores and
open boundaries
Forum
45. Open Source Economic Development
develops networks with tight cores and
open boundaries
Forum
46. Part 2: Building Entreprenuership and Innovation
Networks
Brainpower Innovation
21 Century Talent Entrepreneurship
Networks
Civic
Collaboration
Quality,
Connected Branding
Places Experiences
47. Part 2: Building Entreprenuership and Innovation
Networks
Brainpower Innovation
21 Century Talent Entrepreneurship
Networks
Civic
Collaboration
Quality,
Connected Branding
Places Experiences
48. Open innovation
networks move us to
the Second Curve Prosperity
Time
Anchor
Stage 1 Stage 2 Stage 3 Stage 4
Clusters typically Supporting networks Networks continue Cluster continues to
start from a begin to form with to form evolve with split-offs
seed investment public and private by attracting and outside
in a shared support firms and brainpower investment
platform
5 to 20 years
49. A strategy map for colleges and universities
Provides capital
and business Venture
development investor and
Start-up firms expertise entrepreneur
Stage 1 networks
Provides research, ideas, Adds new firms
entrepreneurship to technology clusters
support and smart people from new starts
and spin-outs
Creates wealth
Supports to expand
critical Colleges and investment
mass of universities
smart people
Provides
R&D partners
Supports critical Provides training,
mass of smart people technology support
to clusters
Skilled regional Growth companies
talent pool Stages 2, 3, 4
and clusters
Supports critical
mass of smart people
Source: Ed Morrison and I-Open
50.
51. Our Approach
• Create regional networks that support entrepreneurship
at all levels
• Develop stronger connections among support
organizations
• Increase resources for existing and emerging
entrepreneurs
52. Entrepreneurship Strategies
Educating Future Entrepreneurs
• Entrepreneurship Youth Institute
• STEM-Focused Entrepreneurship Summer Camp (2007
and 2008)
• Classroom Business Enterprise
• Develop Entrepreneurship Program at Regional Career
Centers
57. Industry Cluster Approach
Move Innovations into North Central Indiana
Businesses
• Identify Strongest Regional Clusters
• Identify Relevant Innovations
• Recruit Pilot Businesses
58. Industry Cluster Approach
Use an Enterprise Wide approach:
• Tech Transfer
• Technical Assistance
• Skill Development at all levels
59. Types of Innovations
• Innovations are technologies, processes, business
models, operational procedures, systems change
• Often Bundles of Innovations rather than a
single big idea
62. Provides capital
and business Venture
development investor and
Start-up firms expertise entrepreneur
Stage 1 networks
Provides research, ideas, Adds new firms
entrepreneurship to technology clusters
support and smart people from new starts
and spin-outs
Creates wealth
Supports to expand
critical Colleges and investment
mass of universities
smart people
Provides
R&D partners
Supports critical Provides training,
mass of smart people technology support
to clusters
Skilled regional Growth companies
talent pool Stages 2, 3, 4
and clusters
Supports critical
mass of smart people
Source: Ed Morrison and I-Open
63. Part 3: Building The Capacity to Collaborate
Brainpower Innovation
21 Century Talent Entrepreneurship
Networks
Civic
Collaboration
Quality,
Connected Branding
Places Experiences
64. Part 3: Building The Capacity to Collaborate
Brainpower Innovation
21 Century Talent Entrepreneurship
Networks
Civic
Collaboration
Quality,
Connected Branding
Places Experiences
66. The Realities We Face
➡ Command and Control
will not work
➡ No one can tell anyone
else what to do
➡ We are stuck in old
thinking...To transform,
we will need new
thinking...
68. Workforce development takes place
in a complex system
Here's what economic and
workforce development in Charleston, SC looks like
Benchmark Environmental
Collaborative Groups
Marine
Sciences Business
Investors
MUSC COG
Chamber
Think Chamber
Tec World $
Defense Trade
Industries Center County
Chamber
Alliance
State Partnership
Legislators Digital $
Port County
Corridor
$
Low Country
Graduate Alliance $ County
Center
Workforce
Investment
Board Tourism/
CVB
Higher Ed County County
consortium Low ED ED
Country
Mfg.
Education
Foundation County
Charleston
ED
Other
Mt.
Local and Chamber ED
Pleasant
N. Activities
Base
Charleston Closure
69. Workforce development takes place
in a complex system
Here's what economic and
workforce development in Charleston, SC looks like
Benchmark
Collaborative
Environmental
Groups
Workforce is here
Marine
Sciences Business
Investors
MUSC COG
Chamber
Think Chamber
Tec World $
Defense Trade
Industries Center County
Chamber
Alliance
State Partnership
Legislators Digital $
Port County
Corridor
$
Low Country
Graduate Alliance $ County
Center
Workforce
Investment
Board Tourism/
CVB
Higher Ed County County
consortium Low ED ED
Country
Mfg.
Education
Foundation County
Charleston
ED
Other
Mt.
Local and Chamber ED
Pleasant
N. Activities
Base
Charleston Closure
72. The answer comes in alignment through
“link and leverage” strategies
73. We need to start thinking in terms of networks
Knowledge Person;
Hub
Boundary Spanner
Information
Broker
Knowledge
Person
Knowledge Person;
Hub; Influencer
Peripheral
Person
74. The key to strategy is guiding the conversations
People move in the direction of their conversations...
Strategic doing guides these conversations
Positive
Prosperity conversations
Index
Negative
conversations
Years
Today
Source: Ed Morrison
75. Open Source Economic Development
requires a new approach to leadership
Traditional Leadership Network Leadership
Centralized Distributed, Shared
Single Leader Many Leaders
Command and control Link and leverage
Lead from the front and
Lead from the front
the rear (it depends)
76. And a new set of leadership roles
Network Leader Role Responsibilities
Conveynor Creates neutral space
Connector Links people and assets
Civic entrepreneur Sees new opportunity
Guide, Mentor Maps a complex process
Strategist Reveals larger patterns
79. Civic Deliberation
High
Process
Paralysis
Apathy
Low
Low High
Leadership Direction
80. Civic Deliberation
High
Process
Paralysis
Back Room
Apathy
Politics
Low
Low High
Leadership Direction
81. Civic Deliberation
High
Open Source
Process
Economic
Paralysis
Development
Back Room
Apathy
Politics
Low
Low High
Leadership Direction
82. Well....How do we get there?
‣ Step 1: Create a neutral civic space
‣ Step 2: Establish new habits of “thinking
together”
‣ Step 3: Move from “thinking together” to
“acting together”
83. Step 1: Create a neutral civic space
✓ Form a core team to launch civic
conversations about brainpower
✓ Find a physically neutral space
✓ Establish clear rules of civility
84. Getting started...Civic Forums help you...
‣ Identify networks and map assets
‣ Build civic habits of “thinking together”
Civic forums provide a good way to start
strategic doing
Source: Nead Brand Partners
85. Step 1: Create a neutral civic space
✓ Form a core team with someone with
“convening power”
➡ College and university presidents
➡ Community foundations
➡ Health system executives
86. Step 1: Create a neutral civic space
✓ Find a physically neutral space
➡ Colleges and universities
➡ Libraries
➡ Community centers
87. Step 1: Create a neutral civic space
✓ Establish clear rules of civility
➡ Open boundaries
➡ Treat each other with mutual respect
➡ Transparency, sharing
88. Step 2: Establish new habits of
thinking together
✓ Map your networks and explore new
connections
✓ Guide the conversations about
opportunities
✓ Leverage the Internet: Web 2.0
91. Mapping networks can guide our behavior
across old boundaries
Civic forums help us cross the
quot;invisible fencesquot; (that no longer work)
92. Leveraging the Internet keeps people
connected...opens the door to others
innovatingnetworks.net
93. Step 3: Move to “acting together”
✓ Establish core team with clear roles and
responsibilities
✓ Develop a network of partners
✓ Build habits of strategic doing
96. Replace strategic planning with “Strategic Doing”
We need new habits of thinking
together...Strategic doing
Our grandfather's economy Our grandchildren's economy
97. Strategic Doing is like paddling
a kayak in the ocean
Strategic doing is an open process with
leadership direction that dynamically aligns
98. Strategic Doing focuses on answering four
questions:
1. What could we do together?
2. What should we do together?
3. What will we do together?
4. How will we learn together?
99. Strategic Doing: People move in the direction of
their conversations
Develop ideas about
what we can do
together
Explore
Evaluations Insights
Execute and Choose
measure Execute Focus what to
results do
Action Plans Initiatives
Align
Identify and align
resources to
specific initiatives
100. Strategic Doing: People move in the direction of
their conversations
Develop ideas about
what we can do
together
Explore
Evaluations Insights
Execute and Choose
measure Execute Focus what to
results do
Action Plans Initiatives
Align
Identify and align
resources to
specific initiatives
101. Strategic Doing: People move in the direction of
their conversations
Develop ideas about
what we can do
together
Explore
Evaluations Insights
Execute and Choose
measure Execute Focus what to
results do
Action Plans Initiatives
Align
Identify and align
resources to
specific initiatives
102. Strategic Doing: People move in the direction of
their conversations
Develop ideas about
what we can do
together
Explore
Evaluations Insights
Execute and Choose
measure Execute Focus what to
results do
Action Plans Initiatives
Align
Identify and align
resources to
specific initiatives
103. Strategic Doing: People move in the direction of
their conversations
Develop ideas about
what we can do
together
Explore
Evaluations Insights
Execute and Choose
measure Execute Focus what to
results do
Action Plans Initiatives
Align
Identify and align
resources to
specific initiatives
104. We move around the cycle with a Strategic Doing
Pack of workshop exercises
Develop ideas about
what we can do
together
Explore
Evaluations Insights
Execute and Choose
measure Execute Focus what to
results do
Action Plans Initiatives
Align
Identify and align
resources to
specific initiatives
76
105. We move around the cycle with a Strategic Doing
Pack of workshop exercises
Develop ideas about
Exercise 4 what we can do Exercise 1
together
Explore
Evaluations Insights
Execute and Choose
measure Execute Focus what to
results do
Action Plans Initiatives
Align
Identify and align
resources to
Exercise 3 specific initiatives Exercise 2
76
106. Strategic Doing is not an event...
it’s a disciplined process
Regions are moving toward civic processes
that focus on Strategic Doing
Strategic Strategic Strategic Strategic
Doing Doing Doing Doing
Forum Forum Forum Forum
working groups
30-90 days
Source: Ed Morrison
107. Civic Network Strategies
Conduct Quarterly WIRED Forums around the region
‣ Note: Our Clean Energy Forum and our regional
leadership initiative emerged from these regional forums
Engage Civic Leaders on a Regional Innovation Mission
✓Example: National Renewable Energy Lab visits
108. Civic Network Strategies
Develop a Structure for an On-Going Regional Civic
Network
✓ Civic Entrepreneur Leadership Institute
(developed by IUK)
✓ Use new social network analysis tools
109. Cetys Workshop
November 4, 2008
Cetys Open
Strategic Doing Pack
Ed Morrison
Purdue Center for Regional Development
110. The Strategic Doing cycle
Develop ideas about
what we can do
together
Explore
Evaluations Insights
Execute and Choose
measure Execute Focus what to
results do
Action Plans Initiatives
Align
Identify and align
resources to
specific initiatives
81
111. The Strategic Doing cycle
Develop ideas about Exercise 1
what we can do
together
Explore
Exercise 2
Evaluations Insights
Execute and Choose
measure Execute Focus what to
results do
Action Plans Initiatives
Align
Exercise 4 Identify and align Exercise 3
resources to
specific initiatives
81
112. Workshop Exercise 1:
Map Assets: Explore
Strategic Training Assets
Describe assets that you have to meet the training needs of
employees and employers in the short term
1
2
3
4
5
82
113. Workshop Exercise 2:
Explore
Strategic Collaborations
Strategic Outcome
Describe at least three strategic partners
for us as an “innovation network”
that can collaborate to accomplish this
Describe the outcome in three years
outcome
With our help, we envision we will .... 1
2
3
4
5
83
114. Strategic Outcomes Strategic Outcomes describe a desired state in the
future. Descriptions of the desired state should
include the idea of stretch, measurable goals. What
will REN look like, feel like in 3 years? What will
people be doing? How will people be connecting?
How will REN help transform Indiana?
“A learning community” is not as good a strategic
outcome as “community that accelerates innovation
in rural communities across regions.”
Strategic Strategic Collaboration describes the type of
Collaborations partnerships we need to achieve our Strategic
Outcomes. More specific descriptions will provide
clarity to “who should be at the table”.
84
115. The Strategic Doing cycle
Develop ideas about
what we can do Exercise 1
together
Explore
Evaluations Insights
Execute and Choose
measure Execute Focus what to
results do
Action Plans Initiatives
Exercise 3 Align
Identify and align
resources to
Exercise 2
specific initiatives
85
116. Workshop Exercise 2:
Focus
REN SMART Goals
Strategic Initiatives for REN How should we measure our progress? How
will we know we will be successful?
To achieve our strategic outcomes, we will 1
(do what?)...
2
3
4
5
86
117. Strategic Activities and Strategic Outcomes are just words until we
Initiatives describe what we will actually do to achieve our
outcomes. Strategic activities and initiatives (or
projects) describe what we will do together.
We still need to be more specific though. We need
to mark the path forward with some SMART goals
-- or road markers.
SMART Goals SMART Goals are simple, measurable, aggressive,
relevant and time sensitive. They are milestones to
mark our path.
So a SMART Goal might be: By 2010, we will expand
our on-line professional support to XXX members.
In this exercise, focus on what we need to
measure to keep us focused on our path
ahead.
87
118. The Strategic Doing cycle
Develop ideas about
what we can do Exercise 1
together
Explore
Evaluations Insights
Execute and Choose
measure Execute Focus what to
results do
Action Plans Initiatives
Exercise 3 Align
Identify and align
resources to
Exercise 2
specific initiatives
88
119. Workshop Exercise 3:
Align
Our Strategic Outcome:
Time frame What Who
In the next 6
months
In the next 3
months
In the next 30
days
Next week
89
120. Thank you!
To learn more:
Purdue Center for Regional Development
http://pcrd.purdue.edu
I-Open
http://i-open.org