Southern 5 COI: 2008-2012 Strategic Roadmap

1. Southern 5 COI:2008-2012 Strategic Roadmap March 12, 2008 Shawnee Community College Southern Illinois: Garden of the Gods ViTAL Economy Alliance Frank Knott, ProjectLead; Stan Halle, Senior Editor; JimHaguewood, Rob Beynon, & Neil Gamroth, Principal Economic Researchers fknottmd@earthlink.net; http://www.vitaleconomy.com

2. S5 COI 2012 Goals $90.3 M in New Wages 784 New Jobs @$43,500 4,863 Existing Jobs Raised by $5,000/Year 522 jobs at New Average Wage $36,517 Increase Youth Retention: 6.9% to 7.2% (15-19yrs) 18.7% to 21.5% (20-34yrs) Reduce Poverty From 14.5% to 12.5% COI Perspective: Southern Five Is SI worth fighting for? • Challenges: • Lack of skilled workforce for current and future jobs • Lack of cooperation, collaboration, and regionalism • Does the region have the assets to grow and retain tech based jobs? • No sense of urgency • K-12 performance • Opportunities: • Geography, logistics and transportation • Community College System and SIU • Local healthcare availability • Tourism, bed & breakfast, Shawnee National Forest, historical assets, wineries • Agribusiness opportunities (e.g., ethanol) • Sense of Urgency • Changing our mindset — how we view poverty! • Stop the bleeding — put a triage process in place for the economy, now! • How will your children grow up and where will they go? See: RA Chapter 6

3. Global & Nat’l Trends • Global growth presents SI with opportunity to accelerate its economic growth from 1.34% to 3.85% per year • KBE activity now accounts for 50% plus of GDP growth, 3x’s growth in occupations and pays double the average wage of other jobs • By 2010, the U.S. will have a 10M worker shortfall requiring strong workforce development resources • 3 of 4 factors required to support KBE activity in rural America are SI strengths • 58% of all U.S. and global tourists want authentic active, historic and cultural experiences (50-80 million) • Logistics is a $900 billion U.S. industry in a global $3.43 trillion market growing at 10-15% per year • 74% global increase in coal consumption, 138% in coal-to-liquid and 66% in bio-fuels by 2030 27,298 New Hi-Wage Jobs 41,461 Existing Jobs >$5,000/Yr $642 Million New KBE Activity 1,600+ Firms >$2 Billion New Annual Wages 4,500+ Families with Healthcare Coverage Lift 10,000 Citizens Out Of Poverty $200 Million Information Technology Investment Connecting SI’s Assets and Trends to 2012 Goals Is SI worth fighting for? CSI 2012 M/S1 Goals* Regional Assets • Heartland of America location, equidistant to 2/3 of U.S. markets, central to economic expansion of the Americas • SIU - a major R&D university with 60+ years history serving students from over 100 world cultures supports global KBE growth • Robust education and training resources position SI for global workforce training opportunity • Mild climate, unique natural environment, active lifestyle assets, arts and culture amenities, attractive quality of life characteristics are important factors for KBE, tourism and senior living growth • Inter-modal logistics, transportation and distribution resources have a strong foundation in SI • SI has plentiful legacy and alternative-energy assets. SI is a coal leader and is strong in 2 of 4 areas of projected alternative energy growth by 2030 + = Note: Regional Assets (Chap 2); Trends (Chap 1); * Milestone #1 Connect SI Goals were announced to the Public 26 Feb 2007

4. Potential SI Jobsby Sector (1 of 2) Is SI worth fighting for? • Global growth opens up opportunities to expand SI economy beyond its traditional growth rate • 10 million U.S. worker shortage is an opportunity for SI workforce development resources • Growth in services exports enable SI to move away from uncompetitive legacy economic activities Global Workforce Opportunities 18,750 New Jobs • ICT investments contribute 33% to U.S. productivity growth…this validates importance of NPCOI • SI’s 64% increase in broadband access can better leverage six-fold increase in e-commerce activity • 4 of 5** factors in rural KBE growth are SI strengths — need to be leveraged for SI economic growth • Livable community assets present in SI are an attraction asset for KBE, Senior Living and Tourism • Alternative energy, global warming and “greening” of society is creating innovation opportunities KBE 8,023 New Jobs • **Five Factors are: • High Quality Workforce • College or Universities • Local Amenities • Transportation Infrastructure • Size See: RA Chapter 1

5. Senior Living 3,676 New Jobs Energy & Mining 5,680 New Jobs Tourism 4,450 New Jobs Log/Trans//Dist 1,675 New Jobs Potential SI Jobs by Sector (2 of 2) Is SI worth fighting for? • 77 million retiring baby boomers present an affluent senior living growth opportunity for SI • SI energy assets and knowledge are in the sweet spot of energy priorities for growth • Preferred tourism growth sectors indicate SI is positioned for accelerated tourism growth • Significant transportation labor shortages are moving transportation and distribution centers from the coast to the center of North America. SI location and logistics assets position it for growth Climate of Economic Opportunity = an additional 10,210 new jobs NEW GRAND TOTAL = 50,789 Jobs (vs. 27,298 Jobs Feb ‘07) See: RA Chapter 1

6. Leadership: the Key to Success Is SI worth fighting for? • PEOPLE are the most important Connect SI asset who volunteer and commit their time, talent and treasure to achieve SI goals • Selection: Choice of leaders should be based upon active participation in achieving the CSI Strategy — LAC, COI, cluster & action team leadership should include a mix of styles, connections and influence (see RA Chp. slides 29-30) • Training: Volunteers should be rewarded with yearly education and self-improvement programs — provides ROI for participation; enhances leadership effectiveness; and improves strategic outcomes • Support: Leadership is a volunteer effort that requires staff support to achieve desired results — CSI staff needs to proactively engage leaders and fill initiative gaps as identified • Motivation: Volunteer leaders’ efforts are fueled by recognition of their impact and accomplishments — CSI must regularly highlight leadership and community progress toward goals and celebrate short-term wins • Focus:CSI staff assist leaders in consistently reinforcing strategic direction, current status, and immediate tasks at hand — maintaining focus yields better results CSI Leaders, volunteers & staff must function as true catalysts — stimulating the transformation of SI’s economy —

7. SI Vision 2012 Is SI worth fighting for? Southern Illinois will: • Be the fastest growing economic region in Illinois • Be the regional gateway: • From America’s Heartland to the global economy • From the global economy to America’s Heartland • Be named a national and regional model for collaborative, regional rural economic transformation • Achieve a positive balance between livability & sustainable growth • What follows are four Goals to achieve this Vision and transform SI • Each Goal has four Strategies (16 total) • Each Strategy has four Actions (64 total)

8. SI’s Transformation:Four Measurable Goals Is SI worth fighting for? • GOAL #1: Transform SI Mindset and Behavior – Increase CSI champions and collaborative funding by 300% and build a climate of unlimited economic opportunity through creation of 1,600 KBE firms by 2012 • GOAL #2: Transform SI Economic Performance – Increase SI GRP by $3.5 billion/year, its average annual growth rate from 1.34% to 3.85%, and its state and local tax revenues by $200M+ per year by 2012 • GOAL #3: Transform the SI Enabling Environment – Create a collaborative regional culture of livable communities with planning and zoning standards; with global best practice broadband penetration; and reduce SI’s #1 ranking in 15 of 18 Illinois Poverty Summit indicators by 50% by 2012 (RA Chp. 1.05) • GOAL #4: Transform SI Leadership and Governance Frameworks – Realize “Crossing the Boundaries” vision of Connect SI by expanding the base of collaborative leaders by 500 persons and implementing regional collaborative governance frameworks to successfully fund, resource and manage a dynamic SI economy; accomplished by 2012

9. #1:TransformSI Mindset and Behavior Is SI worth fighting for? • GOAL #1: Transform SI Mindset and Behavior – Increase CSI champions and collaborative funding by 300% and build a climate of unlimited economic opportunity by creating 1,600 KBE firms by 2012 • STRATEGY 1A – Develop and implement a regionally-led collaborative funding strategy raising $1.8M+ per year through 2012 and achieve a 4:1 external leverage of regional investment by 2012 (RA Chp. 7.03, slides 28, 29) • STRATEGY 1B – Implement a community engagement strategy that mobilizes 3,000+ Connect SI community champions to support the CSI strategy • STRATEGY 1C – Launch a regional branding and communications strategy that embeds awareness and support of Connect SI across 20% of SI population by 12/31/2009 and 50% by end of 2010 • STRATEGY 1D – Shift the focus of SI Community and Economic Development (CED) from declining legacy industries to high growth Knowledge-Based-Enterprise (KBE) innovation sectors by creating 16,000 KBE jobs by 2012, supported by implementation of an Integrated Finance Framework

10. #2:TransformSI Economic Performance Is SI worth fighting for? • GOAL #2: Transform SI Economic Performance – Increase SI GRP by $3.5 billion/year, its average annual growth rate from 1.34% to 3.85%, and its state and local tax revenues by $200M+ per year by 2012 • STRATEGY 2A – Create 16,379 new jobs at $43,500 by 2012, and an additional 10,919 new jobs from $36,517-$40,785 per year by 2012 — healthcare benefits are to be included with all new jobs • STRATEGY 2B – Improve 41,461 workers incomes by $5,000/year by 2012 • STRATEGY 2C – Develop and implement an investment attraction strategy to increase SI global export value by $1Billion/year by 2012 (RA Chp. 5.01, 5.05) • STRATEGY 2D – Shift the ratio of private sector vs. public sector income in SI from 46:54 to U.S. ratio of 65:35 by 2012 to increase SI climate of risk taking and diversify income sources of SI economy (RA Chp. 7)

11. #3:TransformSI Enabling Environment Is SI worth fighting for? • GOAL #3: Transform SI Enabling Environment – Create a collaborative regional culture of livable communities with planning and zoning standards; with global best practice broadband penetration; and reduce SI’s #1 ranking in 15 of 18 Illinois Poverty Summit indicators by 50%, by 2012 (RA Chp 1.05) • STRATEGY 3A – Define SI Livable Community Standards by end of 2009 that leverages the planning and design resources of SIU, UI and Urban Land Institute (RA Chp. 3.04) • STRATEGY 3B – Improve regional health outcomes by reducing cardiovascular disease mortality from 215 to 166 per 100,000 by 2012, a 23% reduction (RA Chp. 6.06) • STRATEGY 3C – Achieve a 54% global best practice broadband penetration rate in SI by 2012 and increase Network Providers revenues $45M/year by responding to industry cluster and regional COI connectivity requirements • STRATEGY 3D – Develop a collaborative education and training strategy across SI that achieves a 32% Associate Degree and 85% High School Diploma or higher to meet 2012 workforce requirements (RA Chp. 5.02)

12. #4:Transform SI Leadership and Governance Frameworks Is SI worth fighting for? • GOAL #4: Transform SI Leadership and Governance Frameworks – Realize “Crossing Boundaries” vision of Connect SI by expanding the base of collaborative leaders by 500 persons and implementing regional collaborative governance frameworks to successfully fund, resource and manage a dynamic SI economy; accomplished by 2012 • STRATEGY 4A – Create a “Crossing Boundaries Institute” focused on training and developing collaborative leaders to manage/drive a 21st century regional SI economy — exhibits 3C behaviors: Collaboration, Connectivity and Changed Spending • STRATEGY 4B – Establish a regional CED planning, strategy and data service for local communities as well as a benchmarking portal to measure SI progress in achieving Connect SI goals and improving SI innovation economy readiness relative to global best practice • STRATEGY 4C – Support, maintain and resource four regional COI’s, Healthcare COI, Network Provider COI, 12 industry cluster teams, and action plan implementation teams (RA Chapter 7.04 slides 27, 32) • STRATEGY 4D – Mobilize, connect and align non-profit community development and social service groups to create a collaborative approach to achieve the 2012 Connect SI CED growth goals

13. Phase II Structure and Strategy LEADERSHIP BOARD Connect SI Leadership Board Youth Engagement Strategy 27,298 New Hi-Wage Jobs GE COI SE COI S5 COI GW SOI NP COI Healthcare COI 41,461 Existing Jobs >$5,000/Yr Integrated Finance Strategy Southeastern COI Greater Egypt COI Network Provider COI Southern Five COI Greater Wabash COI Healthcare COI $642 Million New KBE Activity 1,600+ Firms Innovation Ecosystem >$2 Billion New Annual Wages Cluster Cluster +4500 Families with Healthcare Coverage Cluster Industry Cluster Analysis and Strategy Cluster Lift 10,000 Citizens Out Of Poverty Cluster Cluster $200 Million Information Technology Investment Crossing Boundaries Institute Cluster Cluster Cluster Phase 1 => Phase 2 => Goals Is SI worth Fighting for? 2012 Goals Phase 1 Outcomes GIS Asset Maps Broadband Strategy Economic Benchmarks Regional Economic Strategy Healthcare Strategy Regional Economic Framework Five-Year Measurable Goals Implementation & Funding Plan COI Transition to Phase II Industry Clusters: See RA Chapter 7 Slide 27

14. Phase 2 Industry Cluster Focus to Achieve SI Goals Is SI worth fighting for? • Tourism • Bio-Agriculture • Knowledge Based Enterprises (KBE) • Healthcare Technology Products & Services • Advanced Manufacturing • Recreational, Marine, Hunting, Technology Products & Services • Visual Creative & Performing Arts and Services • International Incubation and Innovation • Green Technologies • Homeland Security Response and Services • Life Sciences, Plant and Animal • Global Workforce Opportunities • Energy • Mining Technology • Transportation, Logistics & Warehousing • Senior Living • Education & Training (also supports all the other clusters) All new jobs created by Industry Clusters will be targeted to include private payer health benefits for workers and families

15. Healthcare Economics are Transformed! SI is a Global Broadband Leader • Insured population +10% • Medicaid -26% • Medicare +18% • Uninsured -32% 54% % Penetration of Population 34% 24% 12% SI Becomes an Innovation Economy It’s Time to Go Global! 67% 64% 54% 11% 46% 8.4% 36% 33% 2.4% Measurable Indicators of ProgressTowards 2012 CSI Goals Is SI worth fighting for?

16. 2012: What SI Success Looks Like Is SI worth fighting for? • Southern Illinois is the global location where inter-generation active lifestyle families, visitors & KBE workers choose to live work and play — growth abounds • SI’s historic liability of remoteness and lack of access becomes an asset; instead of forgotten by Chicago, Springfield and Washington, SI is a land and lifestyle treasured, respected, sought after and envied — there is only one SI in the World • SI communities see themselves in a new light; they are respectful of their place; they see themselves as gateways to a land that is "The Garden of The Gods" • Tourism venues, town centers,rural lands, business locations and neighborhoods all demonstrate by their look and feel that SI is a very special place to be preserved and enhanced for all time • SI is a place of welcome for people of all cultures whether visiting or living here; in the land of "The Garden of the Gods” all are welcome and of value • It is a place many want to be, but only the fortunate choose to take advantage of this unique opportunity; SI becomes a place that is worth a premium, rather than one that feels it must offer a discount to be desired Source: ViTAL Economy Alliance

17. The Call to Action Is SI worth fighting for? • These Goals/Strategies/Actions are ambitious but are, in fact, achievable: • Unless you strive for stretch goals — you will never get to “adequate” • The key questions each of you must answer: • Is SI worth fighting for? If not now, when? • Are you willing to take control of your destiny? “Let me assert my firm belief that the only thing we have to fear is fear itself -- nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance” —FDR 1933 Speech to turnaround the Country’s pessimistic outlook —