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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
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!
Purdue Center for Regional Developmentwww.purdue.edu/pcrd