CONNECT SI
Southern Illinois: Garden of the Gods
Readiness Assessment
Chapter 3: Enabling Environment
Revised February 15, 2008
ViTAL Economy Alliance
Frank Knott, Project Lead; Stan Halle, Senior Editor;
Jim Haguewood, Rob Beynon, & Neil Gamroth, Principal Economic Researchers
fknottmd@earthlink.net; http://www.vitaleconomy.com
—1—
©2007 ViTAL Economy, Inc.
Table of Contents

EXECUTIVE OVERVIEW: the Big Picture &
Importance of Change in Southern Illinois

READINESS ASSESSMENT (RA)
1. State, National & Global Trends
3.01 Climate of Collaboration
2. Indigenous Resources & Industry Asset Mapping
3. Enabling Environment
3.02 Governance
3.03 Broadband Connectivity
3.04 Livable Communities
4. Climate of Innovation, Incubation & Entrepreneurship
3.05 Adaptability to Change
3.06 Implications &
5. Southern Illinois Competitiveness
Recommendations
6. Regional Perspectives
7. Framework for Success
APPENDICES
—2—
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
In order to take advantage of the trends (Chapter 1) and leverage what makes SI unique (Chapter 2), the key
enablers listed below determine whether the SI climate is able to take advantage of these trends and unique
assets. This Chapter assesses the readiness of these key enablers to support positive economic growth.
Enabling environment performance is the key variable in determining if SI is able to address SI’s Big Dilemma.
Chapter 3:
Enabling Environment
3.01 Climate of Collaboration ………………….. 5
3.02 Governance…………………..…………….. 15
3.03 Broadband Connectivity ………………….. 34
3.04 Livable Communities ……………………… 49
3.05 Adaptability to Change ……………………. 62
3.06 Implications & Recommendations ……….. 75
—3—
©2007 ViTAL Economy, Inc.
Key Enablers to Making Our Future a Reality
3.0 Enabling Environment

Collaboration is the essential behavior of a 21st century “World is Flat”
economy — independent and hierarchical behavior is out — interdependence
is valued as a strength not a weakness

Governance practices must be transformed to support the reality of a 24/7
globally competitive economy — best practice economies are the most
effective and efficient at making it easier for work and workers to compete,
live, learn, innovate, grow & collaborate

Connectivity is the key enabling infrastructure for effective collaborative
regional economies — a mindset as well as an infrastructure that changes
how we transact business, govern, communicate, relate & access resources

Livable, sustainable or gateway communities are welcoming environments
that support innovation, embrace creative culture and attract KBE work and
workers desiring quality of life locations

Adaptability to change is necessary for persons or entities who live and
operate and want to be effective, relevant and successful in fast paced ever
changing 21st Century economic environments
—4—
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
The best performing wealth-creating communities have recognized the strategic implications of moving from a
‘culture of independence’ to one of ‘interdependence and collaboration’. They recognize that technology
convergence has caused the compression and collapse of organizational hierarchy. Collaboration of all kinds
across public/private sectors is the way that individuals and organizations create enough critical mass to
compete in a global marketplace.
Chapter 3:
Enabling Environment
3.01 Climate of Collaboration
—5—
©2007 ViTAL Economy, Inc.
What is Collaboration?
3.01 Climate of Collaboration

Collaboration is the essential leadership and management model of behavior for
people functioning in a global, converging, and chaotic world




It is a lifestyle change that requires us to throw away our command and control
models of behavior, and our desire to control versus share resources
Collaboration is the only organizational model that makes sense in a ‘24/7 World-isFlat Economy’
It is a way of life different than the one we have known
Collaboration means sharing of resources and prioritizing interdependence over
independence

Shared resources include financial, human, information, infrastructure,
organizational, or knowledge assets

Collaboration is a more efficient and effective use of government, not-for-profit,
business or personal resources
“The boundaries between companies, towns and organizations will blur
as they view themselves as part of an ecosystem, supply chain, or value chain”
- Hasso Plattner, SAP
—6—
©2007 ViTAL Economy, Inc.
3.01 Climate of Collaboration
Why Collaboration is Critical
“Neighbors Are No Longer The Competition”
• Rural economies are competing against country strategies
• Provides rural economic regions with the critical mass necessary to compete
with country strategies and mobilize emerging clusters of opportunity
• Builds connections within and between regions — making remoteness an
asset
• Provides a more cost effective way to allocate resources and make critical
decisions
• Aggregates demand to increase access to utility, transport and knowledge
infrastructures expanding opportunity across the region
• Creates critical mass of knowledge assets to promote and nurture the
development of climates of innovation that grow Knowledge Based Enterprises
(KBE), which are replacing the historic commodity-resource based industries of
growth
• Builds a regional Vision which enables a rationalization and alignment of subregional regulatory and tax policies — creates an attractive and effective
economy for workers and work to compete with unified country strategies
—7—
©2007 ViTAL Economy, Inc.
3.01 Climate of Collaboration

In a Collaborative Environment:
Boundaries Disappear — Non-SI Examples
Healthcare:161 healthcare sites across four counties and 10 toll-calling areas collaborate to create
the first toll-free virtual rural healthcare service between doctors, clinics, pharmacies, therapists, labs
and hospitals

Government:

Education: Five K-12 school districts, Peninsula College and private & public workforce
Tasmania creates in one year a 24/7, one stop on-line citizen access to services
from 29 local and State government agencies plus healthcare, education & NGO’s across 26,383 sq.
miles serving 484,000 citizens
development assets collaborate to build the first co-owned business incubator and skills training center

Innovation: Nova Scotia virtually connects every remote fishing village with a college without walls
to Dalhousie University to increase entrepreneurship that leverages its computer science expertise to
develop over 300 village based software companies

Tourism: Collaboration of tourism, agriculture, wineries, seafood distributors and restaurants to
create a local festival leveraging the regions indigenous resources. On-line sales strategies enabled
year round purchases. Dungeness Crab and Seafood Festival now attracts over 30,000 visitors to the
region in one weekend

Natural Resource: Declining forestry industry in Pacific Northwest collaborates to map assets
and link competitive resources to uncover new market opportunities based on indigenous resources
and linking value chain components — expanded employment and new plants built for first time in 30
years
—8—
©2007 ViTAL Economy, Inc.
SI Has a Foundation of Collaboration
3.01 Climate of Collaboration

SICCM is an example of a long standing and successful regional collaboration




The Wine Trail/B&B cross-sector collaboration — marketing & packaging of
assets to capture a larger market
Connect SI leaders have achieved levels of collaboration that have brought SI
statewide & national recognition as well as collaborative funding success




The Southern Illinois Collegiate Common Market (SICCM) is a 501(c)(3) not-for-profit
corporation organized in 1973 to provide a means of sharing human and material
resources in higher education. Articulation agreements,allied health programs, tourism
training, allied grant programs, etc
Members include: John A. Logan, Rend Lake, & Shawnee Colleges; SIC, SIU
Network Providers meeting as a Community of Interest (COI), sharing data for the first
time, setting ambitious goals together — posting of queries for broadband service on a
common server, collaboration to expand broadband across SI
Healthcare Providers meeting as as a COI, sharing data for the first time, setting
ambitious goals together — addressing issues re improving healthcare outcomes,
connectivity, access, and profitability; integrated databases
COI’s sharing information and resources beyond county, town and regional boundaries
Man-Tra-Con has been recognized within and outside the region for its leadership
in building collaborative partnerships for Workforce Development
—9—
©2007 ViTAL Economy, Inc.
SI Examples of Collaboration Success
3.01 Climate of Collaboration

Healthy Community Coalitions across seven counties

REDCO, Electric Co-ops & South Water, Southern Services, etc.

GW, SE and S5 towns collaborating to create critical mass for broadband

On-Line Nursing Program Collaboration — Frontier College, Wabash Valley
College, HC-Skill Shortage Team

Critical Access Hospitals working together — S5 & GW

Integrated Healthcare Critical Skills Training Resources – across all SI

Energy Cluster Team — SI-wide symposia

S5 Clean Coal Gasification Project — S5 cross-town, cross-agency

Regional Creation of the Economic & Healthcare Models — all COIs

Collaboration in development of GIS mapping resources

Preparation of WIRED Proposal — all COIs, Man-Tra-Con, SIU, SIH, etc.

Route 13 Corridor Expansion

World Shooting Complex

Continental University-Rend Lake, SIU & Continental Tire

SIU-reinvigorated outreach partnership with SI region
These examples demonstrate an SI ability to collaborate,
however many SI citizens view SI collaboration as only skin deep
— 10 —
©2007 ViTAL Economy, Inc.
Perceptions of SI Citizens
3.01 Climate of Collaboration
Key findings from a wide cross-section of interviews conducted in SI:
there is a significant lack of collaboration:
People working in ‘silos’; don’t talk with each other, don’t know what the others are
doing; too many rivalries between and within communities
Perception of ‘pie stealing’ rather than ‘making the pie bigger’; banking environment:
‘We swap customers; there’s little growth’
In every sector, public, private, non-profit, being too successful is frowned upon —
We have this attitude of not wanting our neighbours to be successful
Region is fragmented by jealousy, distrust, and a culture of fierce independence
Power resides in a few individuals which limits collaboration
We don’t know how to collaborate; in Missouri, four school districts joined together to
build one high school — instead, our town leaders insist on each having their own, so
nothing modern ever gets built; it is all about power and who controls what
These myopic practices pervade SI — the lack of collaboration has been very costly
Source: RA and EF Hutton Interviews conducted by VE Team
— 11 —
©2007 ViTAL Economy, Inc.
The Primary Barrier to Collaboration
3.01 Climate of Collaboration
Despite the existence of ‘collaboration points-of-light’ in SI there is a pervasive sense that ‘SiloVision’ behavior is a deeply imbedded instinct in SI culture — successful transformation of
SI economy will require a comprehensive strategy to breakdown barriers to collaboration
Education
Health Care
Business
Government
SILO-VISION
— 12 —
©2007 ViTAL Economy, Inc.
Southern Illinois: Collaboration Assessment (1 of 2)
3.01 Climate of Collaboration
Areas of Review
Assessment Rationale
Rating

SICCM is a model for higher educational collaboration.
Further collaboration is required, including K-12 to
meet local and global workforce needs

Competition over a static market has resulted in a lack
of collaboration. CSI Healthcare COI has begun to
change this climate

Limited collaboration between cities, towns, villages
and county governments in SI. The number of taxing
jurisdictions is a disincentive to collaboration

Best practice communities pursue collaboration
between education, healthcare, government, business
and citizens. This enables more effective and efficient
access to services and sharing of resources in a 24/7
globally competitive economic landscape

SIDEZ, REDCO, REDI, regional planning districts are
positive but limited examples of ED collaboration. CSI
has become an expanded model for successful region
wide collaboration, much more is needed
Education Providers
Healthcare Services
Government Agencies
Cross Sector Linkages
Economic Development
= Weak to None
= Improving
= Average
— 13 —
= Good
= Strong
©2007 ViTAL Economy, Inc.
Southern Illinois: Collaboration Assessment (2 of 2)
3.01 Climate of Collaboration
Areas of Review
Detailed Readiness Rationale
Rating

Incubators, SBDC, extension programs, research parks,
entrepreneurship programs and tech transfer resources
have limited or no connection with one another —
budgets are separate and limited in scope

Healthy community initiatives, Access SI and workforce
development partnerships are evidence of ability to
collaborate, but most do not chose to collaborate

SI government institutions, non-profits and many
businesses still function with industrial age,
hierarchical versus flat organizational frameworks
Innovation Assets
Not-for-Profit Partnerships
Flat vs. Hierarchical
Organizations

Collaboration Literacy

Access to Government
Services
SBJ’s One Region – One Vision initiative has been a
singular effort to build collaborative behaviors and
understanding in SI, where such experience is limited
The most effective and efficient globally competitive
communities enable citizens, businesses and
institutions to share resources and access services
seamlessly across boundaries 24/7; for the most part,
this is not a current reality in SI
— 14 —
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
As the world becomes flatter and the pace of change increases, it is imperative that state and local
governments be more nimble and more responsive to business needs. Their role must be to facilitate success,
not erect more road blocks, and to enable a 24/7 world of effectiveness and efficiency. The business climate of
a region is measured in terms of how easy versus how difficult is it for new businesses to be successful and for
established business to remain competitive.
Chapter 3:
Enabling Environment
3.02 Governance
— 15 —
©2007 ViTAL Economy, Inc.
Governance: Intro
3.02 Governance

In an economy where global connectivity resources enable business transactions to take place
in seconds across country political boundaries, its unrealistic to continue to act as if local
geographic or political boundaries still make a difference.

Citizen satisfaction with government services equals the difference between their perception of
what they receive and the expectation of what they want to receive. The more negative the gap
between perception and expectation, the lower the citizens’ belief in the legitimacy of our
governmental institutions. This gap is widening further everyday due to the high level of
expectations created in the simple use of credit cards, cell phones, PC’s and PDA’s. These
devices allow us to shop globally, access our bank accounts, make investments, obtain
information we need at home, work or on the go.

Education is still delivered through industrial aged silo organizations. If the skills of tomorrow’s
workforce are problem identification, problem solving, and strategic brokering, then the way
education and training organizes and acts, not just the curriculum, must reflect the primacy and
delivery of these skills. We need collaboration of resources across the education and training
spectrum to meet the demands of the 21st Century globally competitive just-in-time economy.
“Many forward thinking nations have realized that they cannot make the most of the Information Age with the
creaking governmental machinery of the Industrial Age. In this fast moving, fast changing global economy –
when the free flow of dollars and data sustains economic and political strength, and whole new industries are
born everyday — governments must be lean, nimble, and creative, or they will surely be left behind”
- Former U.S. VP Al Gore, Government Technology Magazine
— 16 —
©2007 ViTAL Economy, Inc.
SI Perceptions of Local Governance
3.02 Governance
Local governments largely ineffective; caught up in the day-to-day; not able to be
proactive; too many petty battles; bureaucratic mind-set
Politicians in SI and Illinois have no “merit” basis for prioritizing projects
State & Federal grant policies do not encourage us to implement a new economy
strategy
Replicating public services every six miles!
Provincialism down to the township level (“it hamstrings us”); territorial thinking
Litigious environment
Things work better in Chicago, Champaign-Urbana or Bloomington — tough to
compete against that!
Competing school systems (again: jealousy) — Saline needs a county-wide system
There is a keen awareness throughout SI that something needs to change
Source: RA and EF Hutton Interviews conducted by VE Team
— 17 —
©2007 ViTAL Economy, Inc.
Overlapping Government Jurisdictions
3.02 Governance




Multiple and overlapping jurisdictions causes confusion and burden on
the business climate

Decision making is bogged down because too many parties are involved

Lack of regional collaboration and planning results in multiple, disconnected
strategies with limited funding

These numerous bodies also add an administrative cost to conducting business in
the region with no clear benefit
Townships vs. counties — lack of funding for county government; most
funding goes to the cities
Even when progressive moves are on the ballot, these are persistently
voted down in some areas, including:

911-systems

School district levies

Zoning and building codes
A deeply rooted fierce independence too often results in myopic and growthlimiting behaviors
Source: RA Interviews and Vital Economy Analysis & Synopsis
— 18 —
©2007 ViTAL Economy, Inc.
Illinois: #1 in Units of Government
3.02 Governance
State as of
June 2002
National
Ranking
Units of Local
Governments
Illinois
#1
6,903
Indiana
#10
3,085
Wisconsin
#11
3.048
Michigan
#13
2,805
Iowa
#15
1.975
Kentucky
#22
1,439
Tennessee
#31
930
Pennsylvannia
#2
5,031
Texas
#3
4,784
California
#4
4,409
Negative Impact
• A significant amount of local
expenditures are being spread across a
small population resulting in a high percapita cost
• Competition between local taxing
agencies for limited funding
• Confusion amongst citizens regarding
tax payments, decisions and priorities
• Multiple taxing jurisdictions in sparselypopulated rural areas do not have
enough critical mass to adequately
finance public services
Units of local government include Counties, Municipalities, townships; School, Fire, Utility,
Parks and Recreation Districts; not all units of government are taxing jurisdictions
Source: U.S. Census of Governments, Individual State Descriptions, 2002, Issued July 2005
— 19 —
©2007 ViTAL Economy, Inc.
616 Home-County Taxing Jurisdictions in SI
3.02 Governance
SI County
#
SI County
#
Alexander
74
Perry
18
Edwards
25
Pope
10
Franklin
50
Pulaski
12
Gallatin
25
Randolph
35
Hamilton
24
Saline
39
Hardin
6
Union
21
Jackson
49
Wabash
19
Jefferson
55
Wayne
65
Johnson
16
White
31
Massac
12
Williamson
30
Taxing Jurisdictions:
• Illinois has about 4,862
taxing jurisdictions in 102
counties; ≈48 per county
• Indiana has 1,950 taxing
jurisdictions across 91
counties; ≈20 per county
• SI is doing a bit better than
Illinois in that it is averaging
about 32 taxing jurisdictions
per county, though still 50%
higher than Indiana
However, SI has one taxing
jurisdiction for every 690 people
vs. 2,529 for Illinois — a very
heavy burden on too few people
Source:http://www.revenue.state.il.us/Publications/LocalGovernment/PtaxStat
— 20 —
©2007 ViTAL Economy, Inc.
The Heavy Burden of Government in SI
3.02 Governance
SI is in transition and its’ governments have not changed or adjusted to it
GDP
Government
% of GDP
Illinois
$590.0B
$56.8B
9.6%
Kentucky
$146.0B
$21.4B
14.7%
Indiana
$248.9B
$24.4B
9.8%
Missouri
$225.9B
$26.1B
11.6%
Tennessee
$23.0B
$25.1B
10.6%
Southern Illinois
$17.6B
$3.5B
20%*
State
IMPLICATIONS:
• Way above average % of
public-based wage earnings
reduces the climate of risk
taking and entrepreneur
business growth
• Business retention and
attraction is negatively
influenced by the # of
government entities, resulting
in a perception of overregulation
• Local governments are
directed and resourced by
Springfield and Washington,
DC which reduce the ability for
local direction and control
“Areas with population declines may retain a governmental structure designed for larger populations
— as the number of residents declines, there may be no automatic trigger to evaluate the need for
the same number of governments or whether other delivery systems might be more appropriate” *
*Source: BEA, Rural Research Report; Illinois Institute for Rural Affairs, Spring 1995
— 21 —
©2007 ViTAL Economy, Inc.
3.02 Governance

Robust Local Economic Development
Resources Are Available
Numerous federal, state, regional and local organizations actively support
and promote SI, including (but not limited to)




Coal Belt Champion Community
USDA
ILDCEO
Delta Regional Authority (which includes the states along the Mississippi as far north as IL and
MO)




These (and other) organizations provide primarily grants for projects, data
and strategic studies


Workforce Investment Areas, Economic Development Regions, and Community College
Districts, and Regional Planning and Development Commissions
SIDEZ (the Southernmost Illinois Delta Empowerment Zone)
County and Municipal Commissions and Organizations
Many grants are for infrastructure improvements
The focus of development has largely been manufacturing investment, even
though it is projected to decline in the region
These agencies recognized that a new organization, Connect SI, was needed to
transcend the silo-funding and provide a region-wide comprehensive approach
— 22 —
©2007 ViTAL Economy, Inc.
Illinois Has a Higher Cost of Doing Business
3.02 Governance
30%
Unem ploym ent Insurance
25%
Worker's Com p Prem ium
20%
State Incom e Tax

Illinois burden of business
cost is 20%-60% higher than
neighboring states
15%
Number of Cities in ‘Top Business Centers**’ by State
10%
5%
is
so
ur
i
M
Ke
nt
uc
ky
In
di
an
a
Ill
in
oi
s
0%
Despite being the 5th largest
state, Illinois trails it
neighboring states in number
of Top 100 Business Centers**

Number of
Centers in:
Illinois
Indiana
Kentucky
Missouri
Top 25
1
7
0
2
Top 50
1
13
4
2
Top 100
4
14
5
5
Population
Ranking
5th
14th
25th
17th
**Forbes relied on economic research firm Economy.com business cost-index-factors in labor, tax, energy and office
space costs. For living costs Economy.com weighs housing, transportation, food, and other household expenditures.
It also supplied five-year historical figures on job and income growth as well as migration trends. Other data was
supplied by Bertrand Sperling, including metro workforce education, presence of four year colleges, quality of life
issues, e.g.: crime rates and cultural and recreational opportunities.
Source: Forbes Magazine, 2007; and Indiana Economic Development Corporation
— 23 —
©2007 ViTAL Economy, Inc.
Illinois Business Tax Climate Ranking:
25th… in the Middle of the Pack
3.02 Governance
Components of the State Business Tax Climate Index, 2007 - #1 Best, #50 Worst
Illinois
Overall
Corporate Tax
Index
Individual Income
Tax Index
Sales Tax
Index
Unemployment
Tax Index
Property Tax
Index
25th
30th
13th
32nd
36th
40th
Source: Tax Foundation, October 2006; Index has 113 variables
— 24 —
©2007 ViTAL Economy, Inc.
3.02 Governance

Public services in Illinois, from education to public safety,
are in trouble:



Illinois Structural Deficit
The problem is not spending — Illinois is a low spending state
ranking 42nd nationally
The trouble is Illinois’ revenue system was developed decades
ago and cannot deal with the costs of funding public services in
the 21st century
Illinois has a tax system so antiquated it does not grow
with the economy


One of the most unfair systems in the nation, placing a larger tax
burden on low and middle-income residents
This means state funding for public services like education and
public safety is unable to grow with inflation and is often cut from
year-to-year
Source: Center for Tax and Budget Accountability, 2007
— 25 —
©2007 ViTAL Economy, Inc.
Illinois Deficit Picture 2008
3.02 Governance
Illinois’ structural deficit makes it imperative that SI develop a culture
of collaborative funding to lessen dependence on State resources
— 26 —
©2007 ViTAL Economy, Inc.
Legal and Courts System Climate
3.02 Governance
State
U.S. Rank
Iowa
4th
Indiana
8th
Wisconsin
10th
Kentucky
33rd




•
•
•
•
•
Missouri
34th
Illinois
46th
Illinois ranks 46 of 50; lawyers regard
business cases as relatively
unreasonable in IL
Indiana, Wisconsin, Iowa all scored in the
top 10
Illinois court system is not regarded as
friendly to business
Medical malpractice issues have reduced
access to medical specialists throughout
SI and have discouraged others from
providing medical services in SI
Workers Compensation rates can be prohibitive
At least 6% of the workforce are repeat abusers versus 2-3% in other parts of the country
SI has doctors who encourage/assist workers in filing false claims taking advantage of the system
Even when we get our rate of incidents down by 50% our claims payouts go up 35%
We have never experienced anything like this anywhere in the U.S.; everyone seems to have a lawyer
- RA Business Leader Interview
Source: Institute for Legal Reform, RA Interviews
— 27 —
©2007 ViTAL Economy, Inc.
Leadership and Governance
3.02 Governance

Connect SI participants and over 940 RA interviewees have identified a
major barrier to transformation — the lack of broad and deep pools of
leadership talent throughout SI communities and organizations

There is a broad based need for leaders with the skills to collaboratively
organize, motivate and lead SI to connect the regions assets and
achieve sufficient critical mass to compete in the global economy

Systems of governance within/between public, private, not-for-profit,
institutional and community development entities cannot be
transformed to lead 21st century regional economies without
understanding & assessing existing leadership styles, and determining
which skill gaps need to be filled to meet new leadership requirements

Following are descriptions of eleven leadership styles needed for a
successful transformation of SI and an assessment of the current base
of leaders
— 28 —
©2007 ViTAL Economy, Inc.
Strong Leaders Ensure Success
3.02 Governance

Vision Leaders grasp and communicate the value of a shared economic vision to a broad base of community and
cluster forces

Innovation Leaders advocate a climate of continuous innovation for each cluster and the overall initiative, as well
as the development of entrepreneurial opportunities

Influence Leaders command the respect of diverse interest groups and whose very presence brings others to the
table to insure cluster and initiative success

Resource Providers value the vision and provide access to resources that enable the vision to succeed at the
initiative and/or cluster level

Research Leaders understand the value of knowledge gathering and knowledge development for the purpose of
crafting the basis for out of the box solutions

Cornerstone Leaders are regulatory, government, business, political and community coalition champions critical
to broad adoption of the cluster and initiative strategies

Collaborative Leaders understand the economic leverage value of shared resources and shared ideas, and
communicate the positive value of such behavior to others

Education Leaders control access to education and training resources and understand the importance of a life
long learning resource in support of the initiative

Economic Leaders understand the importance of changed spending behavior in unleashing traditional spending to
transforming an economy

Connectivity Leaders control access to public and private connectivity resources and champion their linkage to
enable the collaborative development of the local economy

Project Management Leaders are focused on establishing goals and objectives and assuring that cluster-based
project initiatives are managed to a successful conclusion and evaluated in terms of intended outcomes
— 29 —
©2007 ViTAL Economy, Inc.
Southern Illinois: Leadership Assessment
3.02 Governance
Styles of Review
Assessment Rationale
Rating

Limited ability to craft and articulate a vision of the future; exception
One Region - One Vision
Innovation Leaders

Innovation leaders and entrepreneurs are neither prevalent nor
commonly supported — it is safer in SI to remain under the radar
Influence Leaders

A small group of regional influence leaders have committed to lead,
but many are still on the sidelines — even more are needed
Resource Providers

CSI has achieved a record level of collaborative resource support
from dozens of organizations — critical mass has not been achieved
Research Leaders

Knowledge sharing is very limited across SI. Structural systems are
not in place to enable knowledge sharing — tech transfer is weak

The foundation of cornerstone leadership has been laid within CSI
Vision Leaders
Cornerstone Leaders
There is a limited base of collaborative leaders in place — notable
examples of collaboration, but not broad based
Collaborative Leaders

Education Leaders

University and college leaders have committed to lead, but limited
participation from K-12 and non-traditional sectors

The economic leaders are committed to participation, but lack the
training and knowledge and resources to collaborate
Connectivity Leaders

Regional network providers have shown a commitment to lead the
development and implementation of a broadband strategy
Project Management Leaders

Limited number of experienced individuals and organizations to
collaboratively manage/oversee projects to successful conclusion
Economic Leaders
— 30 —
©2007 ViTAL Economy, Inc.
Non-SI Collaborative Governance Examples
3.02 Governance

On-Line Community Services: Columbia County, Georgia was recognized in 2007 as one of five best practice
counties by the Center for Digital Government — has enabled all citizens and businesses to conduct business on-line
24/7 in over 20 service areas (www.columbiacountyga.gov)

Multi-government to Citizen Services: Tasmania creates in one year a 24/7, one stop on-line citizen access to
services from 29 local and State government agencies plus healthcare, education & NGO’s across 26,383 sq. miles
serving 484,000 citizens (www.service.tas.gov.au)

Performance Benchmarking: BC Progress Board tracks changes in the economic performance and social wellbeing of British Columbia —benchmarks BC’s performance against other jurisdictions to determine if BC’s
competitiveness and quality of life are improving (www.bcprogressboard.com)

K-Infinity Education: North Carolina Information Highway enables universities, colleges, high schools, and
workforce development related sites to actively exchange courses across all levels of the educational system without
regard to district, institutional or education level boundaries

Data Portals: State of Oregon provides an on-line integrated data portal for every incorporated municipality inclusive
of infrastructure status, demographic, social and economic data, climate, community development assets, tax rates, and
more — provides comprehensive community profiles

SVETN: Southwest Virginia links 13 rural mountainous counties to create first virtual Governor’s High School, create
on line multi-county and municipal government services network, and just-in-time customized job training for industry
directly to plant floor anywhere, anytime

Rural Health Service: 161+ hospital, clinic, lab, therapist, pharmacist, physician, public health district sites
collaborate across four counties and multiple municipalities in Western New York to create the first rural health service
network — this initiative transformed the economics of healthcare as well as patient outcomes throughout this region

Tourism BC: Rated as one of the world leading destination marketing sites — includes sites for each tourism region;
each regional site is programmed for multiple international visitor interests, includes an integrated booking engine used
by their website, call center and highway and airport tourism information centers (www.hellocbc.com)
— 31 —
©2007 ViTAL Economy, Inc.
Southern Illinois: Governance Assessment
3.02 Governance
Areas of Review
Government
Centers of Excellence
24/7 Citizen Access to
Assessment Rationale
Rating

Other U.S. regions are following business practice of
outsourcing tax billing; assessments to improve service

Citizens no longer have time to stand inline or go from
agency to agency — functioning in a 24/7 world

Residents and businesses need a more effective process
for permit application, review and approval

The only regional data is through SIU or CEDS. State
data is not very comprehensive or accurate for SI region

Few compacts exist for sharing resources across taxing
jurisdictions — resulting in thin & duplicated resources

Connect SI has created the basis for a regional economic
and community development strategy

There are distance learning resources in the region, but
they are significantly under utilized — turf issues remain

Connect SI regional Healthcare COI has created regional
goals — there are existing healthy community initiatives
that cross county borders
Government Services
Integrated Multi-level
Government Permit Process
Regional Data Sharing
Regional Budget &
Tax Sharing System
Regional Economic & Community
Development Strategies
Regional K-Infinity Education
Strategy & Resource Sharing
Regional Healthcare
Strategy and Resource Sharing
— 32 —
©2007 ViTAL Economy, Inc.
Governance: Summary
3.02 Governance

Disparity between policies that support traditional versus emerging new KBE, innovation
economy business, which are the growth engines of 21st Century economies


Illinois structural deficit makes it imperative that SI develop a culture of collaborative
funding to lessen dependence on Illinois resources while expanding SI resources





This leads to inconsistent and unreliable data analysis
Discourages and complicates a regional sense of identity
Makes integrated solution analysis and comprehensive problem solving difficult at best
The leadership gaps are barriers to success unless they are addressed

Youth engagement needs to be part of the leadership development effort

Implementation of collaborative initiatives require a variety of leadership skills
Lack of consistent data analysis across agencies

Very little data was available to SI or its constituent 20 counties
Makes it very difficult to manage or implement a proactive economic strategy

There is a real need for a reliable regional data portal accessible to all levels of government


Long term solutions to the structural deficit are not in the control of SI
Lack of state agency consistency regarding how economic regions are defined


Most current policies support existing, larger businesses tend not to support emerging innovation businesses
There is no governmental strategy in place to support a 24/7 service reality
— 33 —
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
Taking full advantage of the Globalization and eCommerce trends requires access, adoption and
connectivity literacy in the use of broadband throughout SI. The Internet levels the playing field.
Without this basic infrastructure and improved literacy, SI will remain sitting on the sidelines of
economic growth and prosperity.
Chapter 3:
Enabling Environment
3.03 Broadband Connectivity
— 34 —
©2007 ViTAL Economy, Inc.
Broadband Connectivity: Overview
3.03 Broadband Connectivity


The Globalization & eCommerce trends cited in Chapter 1 led to development
of Milestone 5 industry sector growth opportunities
COI goals added additional requirements for linking assets across SI for :












Tourism
Bio-Agriculture
Transportation, Logistics & Distribution
Global Workforce Opportunities
KBE (Advanced Mfg, Creative Arts, Health Products & Services, etc.)
Life Sciences — Plant and Animal
Energy
Mining Technology
Senior Living
Healthcare Services
K-Infinity Education Services
In virtually every sector, broadband infrastructure access and adoption are
critical to enabling each of these sectors to be globally competitive
Connect SI and the Network Providers COI have made significant progress capturing demand,
and fostering the installation of new broadband systems in several communities
— 35 —
©2007 ViTAL Economy, Inc.
SI Comments re: Connectivity
3.03 Broadband Connectivity
Connectivity with students for on-line instruction is poor — it limits students ability
to take advantage of educational resources in the region
Our business partners don’t even have sufficient digital communication lines to
receive distance education to pick up courses for improvement of their workforce
Students are always complaining about off campus access
Most farmers in our county cannot get access to broadband services because we
are too remote, but we are still competing in a global economy
We’ve made more progress in 3 hours than we have in ten years of meetings
trying to get broadband to our communities
This is one of the best efforts of its kind in the U.S. — Connect SI has formed a
collaborative partnership between the network providers and the marketplace
We need Connect SI to help physicians combine our communication needs so
that the network providers can see as as a market opportunity
— 36 —
©2007 ViTAL Economy, Inc.
3.03 Broadband Connectivity
SI Examples of Understanding
the Value of a Connected Region

SIU community data portal collaboration between Center for Rural Health and
Social Services Development, Paul Simon Public Policy Institute & SIU
School of Medicine <www.siumed.edu/medhum/joint%20%20Data%20Project.html>

Carbondale Now-Illinois Area Data Portal <www.carbondalenow.com>

Transitions SI — website for dislocated workers hosted by Man-Tra-Con
<www.transitionssi.com>

Access SI — Community Resource Directory for SI — 1,000+ agencies
<www.accesssi.org>

Shawnee Hills Wine Trail — links nine award winning wineries in Jackson &
Union counties <www.shawneewinetrail.com>
There are connectivity “points-of-light” in SI, but insufficient
critical mass of users who understand the value of connectivity
in changing the way SI lives, works, governs and competes
— 37 —
©2007 ViTAL Economy, Inc.
3.03 Broadband Connectivity
SI Sectors Needing
Connection
Tourism
Connectivity Readiness: a Matter of Literacy,
Not Just Infrastructure
Ratings
24/7 Connectivity Application Availability


Healthcare
eCommerce
eGovernment
K-Infinity
Workforce Development
Innovation Assets
Global Market Access
Economic Development OnLine Portal


Multiple internet portals across SI. No one-stop portal for tourists to learn, plan and book
an SI travel experience
Larger healthcare systems are internally connected — smaller systems are not; limited
access for medical professionals across systems; healthcare customer online access is
very limited
Active e-commerce businesses in SI are in the minority — there are a number of
emerging businesses that are exclusively on-line
There are a number of local governments without web sites and/or access via email —
online government services is very limited

The Illinois virtual high school exists as do a number of distance learning resources, but
they are significantly under utilized

Proactive linkage of training resources, employers, job seekers, industry sector
requirements and credentialing are limited



There are very limited connections between innovation assets across SI — limits
technology transfer and expansion of innovation opportunity
There is limited access to and leverage of global market information or markets
There is no economic development portal for SI — those economic development
websites that do exist are limited in scope and geography
The critical question is: What is the understanding of SI
business, government, NGOs & institutions in the use of connectivity
applications to become 24/7 globally competitive resources for SI citizens?
— 38 —
©2007 ViTAL Economy, Inc.
3.03 Broadband Connectivity
Assessment of SI Addressing
Internet Trends in Tourism
Tourism Industry is an example of SI need for increased understanding
and application of connectivity resources
Internet-Based Traveler Market Trends

Online travel information across multiple venues &
experiences

Online travel planning tools that aid visitor to map an
entire itinerary

Ability to book all aspects of a single trip on-line through
a provider website site

Provides a one-stop inter or intra region travel shopping
experience

Offers lifestyle travel packages with a value packaging
approach

Communicates a quality of brand that can be grasped
by visitor
= Correlation is high
SI Score
= Correlation is low
— 39 —
©2007 ViTAL Economy, Inc.
CSI Network Providers COI Accomplishments
3.03 Broadband Connectivity
Where We Started mid-2006
Where We Are Today
Limited knowledge of network & service
availability
• Entire SI region has networks and assets GIS mapped
including healthcare, population centers, over 40,000 higher
education student and faculty addresses,business,
healthcare and citizen broadband service requests
• Ambitious Goals Set:
Limited broadband deployment objective
& goals
Disaggregated method for people to
request service
• Increase 1.5 Mb penetration from 12% to 54% by 2012
• Increase broadband coverage from 25% to 85% by 2012
• Aggregated paper and online method of gathering needed
information for service request and sharing with all carriers
www.iwantmybroadband.com
No method of gaining community regional
input on where network was needed
• Regional cross-COI meetings held to develop specific
priorities for network builds and application requirements
Low connectivity application literacy
• PR marketing and education program under development
Small communities of under 600 people
were told and believed that they would not
get broadband service in the foreseeable
future
• Small towns (150-300 People) delivered broadband service;
many other communities received expanded services.
• DSL enabled central offices have increased over 100%
• Wireless broadband underway in almost 20 towns
• Cable based broadband expanding in multiple counties
— 40 —
©2007 ViTAL Economy, Inc.
Coverage & Penetration Success of CSI
3.03 Broadband Connectivity
GOALS as of Each Year End
Connect SI
Begins
circa mid-2006
2007
2008
2009
2010
2011
2012
Penetration @ 1MB+ for all
Households
12%
17%
24%
31%
38%
45%
54%
Household Coverage of
Broadband rate @1MB+
25%
35%
45%
55%
65%
75%
85%
ACTUAL Net Gains
2007

Penetration @ 1MB+ for all
Households
16%
9,220
Household Coverage of
Broadband rate @1MB+
41%
31,647
In less than 18 months, Connect SI and the Network Provider COI have



# of Households
Increased household penetration by 33% (from 12% to 16%)
Increased household coverage by 64% (from 25% to 41%)
During the same period 40 additional central offices have turned-on DSL capability
Over $24M of Network Provider investment was made without any public funding
— 41 —
©2007 ViTAL Economy, Inc.
Connect SI Network Provider Collaboration
3.03 Broadband Connectivity
Illinois Century
Network
— 42 —
©2007 ViTAL Economy, Inc.
3.03 Broadband Connectivity
Substantial Broadband Backbone
Already In Place Across SI
GIS mapping has enabled CSI to identify infrastructure assets to leverage to expand
connectivity applications to fuel SI economic expansion
— 43 —
©2007 ViTAL Economy, Inc.
3.03 Broadband Connectivity
GIS Mapping of SI Broadband Resources
— 44 —
©2007 ViTAL Economy, Inc.
3.03 Broadband Connectivity
Backbone Assets Available,
But Underutilized
The Illinois Century Network (ICN) has been an outstanding resource for
deploying broadband to nonprofit and public entities

ICN is a telecommunications backbone providing high speed access to data,
video, and audio connections in:

Schools and libraries

Colleges and universities

Public libraries and museums

Local government and state agencies

More than 5,500 sites are connected regardless of location using standard
local exchange carrier service (aka local phone companies), cable modem,
wireless and dark fiber optic cable and five different connectivity providers

ICN point-of-presences are connected at a bandwidth OC-3 (135 Mb) with
plans to upgrade to OC-12 and beyond
Source: Illinois Institute for Rural Affairs, Sharon Shumacher, Spring 2003
— 45 —
©2007 ViTAL Economy, Inc.
3.03 Broadband Connectivity
ICN Enables Network Providers To Extend
High-Speed Broadband Backbone into SI
Public Schools
3,671
Other Ed. Facilities
680
Private K-12
287
Community Colleges
117
Colleges/Universities
195
Libraries
470
Museums
28
Healthcare Facilities
55
Government
33
Other
138
TOTAL ICN Sites in IL
5,975
96% of over 625 ICN Clients in SI are connected at a T-1 speed or greater
— 46 —
©2007 ViTAL Economy, Inc.
Broadband Connectivity: VE Assessment
3.03 Broadband Connectivity
SI Readiness to Respond to Global Best Practice
Requirements to Enable an Economic Region to
Compete in a A 24/7 World Economy
Household Broadband Network Coverage Access
Household Penetration - Take Rate
Enterprise Broad Band Network Coverage Access
Enterprise Penetration – Take Rate
Network Provider Responsiveness &
Collaboration
Digital Literacy:
(Internet, Computer, Applications, Use)



Household
Enterprise – Includes Businesses
Institutions
Local Government
— 47 —
©2007 ViTAL Economy, Inc.
Broadband Connectivity: Implications
3.03 Broadband Connectivity

Household Broadband Network Coverage & Penetration Rate





Enterprise Broadband Network Coverage & Penetration

Broadband access and use is largely in the Route 13 and I-57 corridors

Healthcare coverage is in the process of being expanded on a number of fronts
Network Provider Responsiveness & Collaboration

Over 30 network providers are collaborating across SI — a record achievement in Illinois

Providers are sharing leads and have committed to meet market demand requirements
Household Digital Literacy


This must dramatically improve especially among adult leaders or SI growth strategy will fail
Enterprise Digital Literacy


Coverage and penetration rates need to continue to expand to meet world class goals
Goal achievement will be critical to enabling a 24/7 globally competitive workforce
Level of literacy is limited — there is a need for expansion of understanding of the role of
connectivity in linking remote assets, achieving improved productivity & accessing larger markets
Local Government Digital Literacy

Most local governments have not adapted their services to a 24/7 flat world reality

Too many elected officials pride themselves on not being digitally connected

KBE work and workers as well as young adults will be put off by digitally illiterate governments
— 48 —
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
One of the most important enablers in a prosperous & growing community is livability — from
infrastructure, to community & natural amenities, to visual appeal & attractiveness, to accessing
good schools, recreation, healthcare, arts & culture.
Chapter 3:
Enabling Environment
3.04 Livable Communities
— 49 —
©2007 ViTAL Economy, Inc.
Livable Communities Intro
3.04 Livable Communities

Livable communities all across America are increasingly popular places in which to live,
work, vacation and retire

In the 1990s, 2 million more Americans moved from metropolitan centers to rural areas
than migrated the other way — communities with natural beauty and a high quality of life
are magnets for businesses, working families and retirees

The vast majority of residents, new and old, feel a strong attachment to the landscape
and the character of their town — want a healthy economy, but not at the expense of
their natural surroundings or community character

Elected officials and residents want to find ways to preserve what they love about their
communities without saying no to jobs and economic development

Across America, there are communities that have found that economic prosperity does
not demand degraded surroundings, loss of community character or becoming a
congested tourist trap

Successful communities are finding that the opposite is true — beauty pays, sustainable
tourism provides more benefits than mass-market tourism, retaining community
character is a key to economic success, and thoughtful management of public resources
and well-planned development can help prosperity occur
Source: National Geographic Center for Sustainable Destinations, Urban Land Institute and The Conservation Fund Survey
— 50 —
©2007 ViTAL Economy, Inc.
AIA Ten Principles for Livable Communities
(1 of 2)
3.04 Livable Communities
1. Design on a Human Scale
• Compact, pedestrian-friendly communities allow residents to walk to shops,
services, cultural resources and jobs while reducing traffic congestion and
improving peoples health
2. Provide Choices
• People want variety in housing, shopping, recreation, transportation & employment
variety creates lively neighborhoods and accommodates residents in different
stages of their lives
3. Encourage Mixed Use Development
• Integrating different land uses and varied building types creates vibrant pedestrian
friendly and diverse communities
4. Preserve Town Centers
• Restoring, revitalizing and infilling town centers takes advantage of existing streets,
services and buildings and avoids the need for new infrastructure — helps curb
sprawl and promote stability for neighborhoods and towns
5. Varied Transportation Options
• Giving people the option of walking, biking and using public transit, in addition to
driving, reduces traffic congestion, protects the environment and encourages
physical activity
Source: AIA The American Institute of Architects: Communities by Design
— 51 —
©2007 ViTAL Economy, Inc.
AIA Ten Principles for Livable Communities
3.04 Livable Communities
(2 of 2)
6. Build Vibrant Public Places
• Citizens need welcoming, well-defined public spaces to stimulate face-to-face
interaction, collectively celebrate and mourn, encourage civic participation, admire
public art. and gather for pubic events
7. Create a neighborhood Identity
• A “sense of place” gives neighborhoods and towns a unique character — it
enhances the walking environment and creates pride in community
8. Protect Environmental Resources
• A well-designed balance of nature and development preserves natural systems,
protects waterways from pollution, reduces air pollution and protects property
values
9. Conserve Landscapes
• Open space, farms, and wildlife habitat are essential for environmental, recreational
and cultural reasons
10. Design matters
• Design excellence is the foundation of successful and healthy communities
Source: AIA The American Institute of Architects: Communities by Design
— 52 —
©2007 ViTAL Economy, Inc.
3.04 Livable Communities
How Rural Places Achieve Economic
Prosperity as Livable Communities

They focus on retaining their scenic beauty, small town values, historic
character and sense of community

They actively involve a broad cross-section of residents in determining and
planning their future

They capitalize on their distinctive assets -- their architecture, history and
natural surroundings rather than trying to adopt a new identity

The most successful places regularly take these actions:

Develop a widely shared vision

Create an inventory of local resources

Build on local assets

Meet the needs of both landowner and community

Team up with public managers

Recognize the role of non-governmental organizations

Provide opportunities for leaders to step forward

Pay attention to aesthetics
Source: Balancing Nature and Commerce in Gateway Communities-Island Press-Jim Howe, Ed McMahon and Luther Propst
— 53 —
©2007 ViTAL Economy, Inc.
Livable Community Benefits
3.04 Livable Communities


Economic Benefits

Invites local spending

Attracts tourists

Attracts investment

Attracts workers


Health Benefits

Cleaner air

More people walk and bike

Activity reduces health risks
Attracts businesses

Obesity reduced

Property values increase

Attracts businesses

Reduced travel costs

More sustainable environment
Environmental Benefits

Balanced transportation

Less miles driven

Reduced air pollution

Compact land development


Social Capital Benefits

More places to socialize

Increased personal interactions

Social network expands
Less habitat fragmentation

Creative networks expand

Less impact to fragile areas

Innovation exchange increases

Less runoff-reduced water pollution

Becomes a people destination
Source: Our Built & Natural Environments, EPA Jan 2001, Centers for Disease Control, www,activeliving.org
— 54 —
©2007 ViTAL Economy, Inc.
What SI Folks Are Saying (1 of 2)
3.04 Livable Communities
Once we get people here, we can’t get them to leave; they love the way of life
Peaceful, quiet and lots of stars in the sky
No traffic congestion — it only takes a minute or so to go a mile here in SI;
compare that to Chicago!
SI quality of life is a major benefit — 80-85% of our workers are outdoorsmen
and enjoy fishing and hunting
I moved here from Southern California, there’s a lot of potential here, but locals
do not realize what they have
Lakes are a draw, state parks are fabulous; we have operation managers from
California that think SI is one of the finest outdoor recreation areas in the U.S.
Serenity, fields, hills, trees, lots of space
We have lots of unique small towns; we should be focusing on what the high
points are of each town and communicating this across and beyond SI to
build pride and opportunity
Source: RA and EF Hutton Interviews conducted by VE Team
— 55 —
©2007 ViTAL Economy, Inc.
What SI Folks Are Saying (2 of 2)
3.04 Livable Communities
We need to deal with the down-and-out look of SI; healthcare professionals who
like the practice opportunity in SI have been astounded at how little respect SIcitizens have for the way it looks
We would have a more attractive community if our politicians would stop focusing
on the next election and start looking towards the next generation
Just look at how we take care of our own community; others would be
embarrassed with the way some of our region looks — always disturbed me
that we live in paradise, yet why do so many of us hate being here?
We should be proud of where we live; where we live is a tremendous asset; we
should have more pride in the appearance of our communities; there is a
culture of low expectation that is pervasive; we need to set higher standards
We loose trained professionals due to limited activities for creative lifestyle folks;
leaders don’t understand what KBE-workers are or want for their families
SI is a gateway to the Garden of the Gods — why do we offer visitors a view of
poverty and devastation
Source: RA and EF Hutton Interviews conducted by VE Team
— 56 —
©2007 ViTAL Economy, Inc.
State & SI Uniform Building Code Issues (1 of 2)
3.04 Livable Communities
Illinois has no uniform, comprehensive building code that is enforced statewide
•
Illinois has over 250 separate laws and administrative rules that control certain aspects
of design and construction
•
•
•
Today, there are two organizations in the U.S. that publish model building codes in each
of the 13 categories recognized by the construction industry
•
•
•
•
It lacks a single code that contains or references all of the guidelines and standards
Most other parts of the country use a single code to help ensure the construction of safe and
healthy buildings
These organizations actually compile, incorporate and reference standards and other
construction-related documents issued by a great number of industry organizations, independent
testing laboratories and federal agencies
The first, formed in 1994, is the International Code Council, or ICC
This second organization is the National Fire Protection Association, or NFPA
Illinois is one of four states left that has not adopted a statewide building code
•
•
•
It has adopted some statewide codes that affect specific areas of design and construction
But, unlike most states, has no uniform, comprehensive family of codes
Generally, zoning ordinances are a companion to the adoption of construction codes
This lack of building codes and zoning is NOT a strength for economic attraction;
it is an economic liability for both housing & business development
Source: International Code Council; interview with Illinois Building Commission
— 57 —
©2007 ViTAL Economy, Inc.
State & SI Uniform Building Code Issues (2 of 2)
3.04 Livable Communities
What options are there for Illinois and the SI counties?
•
First Option: Illinois would take complete charge of the building code system
o
o
o
•
Second Option: “Shared control” of the building code between Illinois and local
governments
o
o
o
•
Centralizing and unifying the processes, interpretations, and rulings concerning a uniform,
comprehensive, statewide code
Creating a “one-stop shop” for the municipalities, general public, product manufacturers and
design & construction industries
The “fierce independence” culture of SI would make this option very difficult to implement and
even harder to enforce
All large municipalities already have adopted a building code, and many have the
administrative structure in place to handle permitting, plan review, inspections, enforcement,
variances and appeals
Most of these local governments currently leave the technical updates of codes to the model
code writing organizations
Makes more sense for SI to piggy-back on this time-tested code — but will still require local
support to implement
Third Option: Legislation that grants exclusive control of a uniform, comprehensive
code to local governments
o
Unfortunately this leaves the impetus in the hands of local folks — therefore requiring a
significant effort to create value & support for setting up code
Source: International Code Council; interview with Illinois Building Commission
— 58 —
©2007 ViTAL Economy, Inc.
Livable Community: Assessment (1 of 2)
3.04 Livable Communities
Access Criteria
Rating
Assessment Rationale
Transportation Options
• The region has complete package of above average
transportation access and infrastructure, including interstate
highways, railways, airports and waterways — outside of GE,
however, public transportation is limited
Healthy Town Centers
• Overall SI downtowns are deteriorating — models for success
exist in SI: SIU School of Architecture provides opportunities for
SI to increase these models of success
Vibrant Public Places
• Opportunities for vibrant public gathering places exist throughout
SI — strategies need to be developed to leverage these locations
Sense of Place
• SI citizens have a narrow belief of the special place and
environment in which they live — a regional branding strategy
could help define this sense of place
Balance of Nature and
Development
• With only 3% of its total land area built up, SI could become a
premium livable community (e.g., double its development), and
still easily retain its rural setting beauty
Open Space
• The region possesses a vast amount of open space, which meet
the criteria for an attractive livable community
— 59 —
©2007 ViTAL Economy, Inc.
Livable Community: Assessment (2 of 2)
3.04 Livable Communities
Access Criteria
Rating
Assessment Rationale
Livable Community
Literacy
• The region has a weak understanding of Livable Community
characteristics — CSI can lead initiatives to educate and
implement key guidelines
Community Codes, Zoning
and Planning Systems
• The region is substantially behind in community planning — SI
will need to enact regional planning to prepare for KBE growth
Life Long Learning Access
• SI is blessed with robust educational resources — the region has
an opportunity to leverage these resources to attract and build
KBE and senior living markets
Housing Options
• SI has an aged housing stock — new housing developments are
underway; diversity of housing options needs improvement; best
practice planning & design standards need to be the basis of
strategy
Creative Class Social
Networks
• The Creative Class is primarily underground in SI, but is growing
— a proactive strategy for leveraging and connecting existing
higher-ed creative assets is critical
Livable Choices
• The region has a narrow offering of livability infrastructure assets
but has robust natural and environment assets
— 60 —
©2007 ViTAL Economy, Inc.
Livable Communities: Summary
3.04 Livable Communities

Planning and zoning is almost non-existent across the region.








There seems to be a certain pride in having no regulation
High value growth businesses want the certainty of planning, zoning & code enforcement
Lack of such tools leads to external view of SI as low value instead of high value
A broad cross section of citizens are not in place to support the development
of livable communities
Examples of livable communities exist in the region, but there are not livable
communities strategies in place
Distinctive assets of architecture, history, natural surrounds and arts and
culture are in abundance — they remain unconnected and not leveraged
Livable community literacy is weak and almost non-existent including the
understanding of the benefit and attraction of high-wage jobs
SI is largely a car friendly economy — public transportation is limited and
workability at the town level is not recognized
With only 3% of its total land area built up, SI could become a premium Livable
Community (e.g., double it’s development), and still easily retain its rural setting beauty
— 61 —
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
One of the most fundamental keys to SI’s growth and prosperity is being adaptable to change —
being willing to change, as well as being flexible and proactive. The pace of change is accelerating
due to globalization and the ten flatteners (Chapter 1). There is an old expression: “even if you’re
on the right track, you’ll get run over if you just sit there”.
Chapter 3:
Enabling Environment
3.05 Adaptability to Change
— 62 —
©2007 ViTAL Economy, Inc.
Adaptability to Change is Essential
3.05 Adaptability to Change
“It's not the strongest nor most intelligent of the species
that survive; it is the one most adaptable to change”
- Charles Darwin
“The definition of insanity is doing the same thing
over and over each time expecting different results”
- Ben Franklin, Albert Einstein & W. Edwards Deming
“When the rate of change outside the organization is greater than
the rate of change inside the organization, the organization is in trouble”
- Jack Welch, CEO GE
The Past is our foundation, but it need not determine our Future!
- VE Team
— 63 —
©2007 ViTAL Economy, Inc.
Adaptability to Change: Perspective
3.05 Adaptability to Change

Adaptability to change in Southern Illinois is the number one prerequisite for
success — transforming your economy & your community CANNOT happen
without proactively embracing change as a new way of life

It is also important to realize that:




Not everyone needs to embrace or accept the change for it to occur



Organizations don’t change — it’s individual leaders and employees who change
Communities don’t change — it’s individual leaders and residents who change
There is no short cut — one-by-one, each person decides whether the change is good for them;
this takes time, focused effort and proof that the change is worthwhile
When 1-to-2% of individuals in a particular group become believers and doers, the change
becomes a real possibility — SI is currently at about 0.4%
Critical mass is reached when 16-18% become believers & doers — it’s at this point when the
change will succeed and endure
Each individual must want the change more than the status-quo — which takes a
combination of a compelling sense of urgency and a compelling sense of
opportunity to provide sufficient motivating force to overcome resistance to change


To reach this shift takes a clear vision of what the change will look and feel like, why it’s
important (motivating forces at both the micro and macro levels), and how to make it happen
(i.e., tools, capability, resources)
The ViTAL Economy approach provides the tools and process for this to occur on an ever
increasing scale —the following slides highlight where SI is today and what needs to change
Source: Leading Change, Overcoming Chaos, Michael Heifetz 1993; The Tipping Point, Malcolm Gladwell. 2000
— 64 —
©2007 ViTAL Economy, Inc.
What SI Citizens Have to Say About Change
3.05 Adaptability to Change
I see our quality of life disappearing because we aren’t willing to change — it is hard to
consider a global picture, when we can’t get along town to town
To get anything done in economic development, you have to be willing to fight the
internal battles at the State level, step on toes, and run the risk later of being
penalized — no one is willing to put their job at risk to accomplish the greater good
It is all about power and who controls what — we have to change this or find a whole new
way to work together
The State just gets in the way; they are clueless, disorganized, slow to respond or
obstructionist — nothing seems to change
We would love to be involved with Connect SI to help define the future we want to have,
however, don’t ask us to get involved in extended processes. Give us a task; pull the
right people together to get it done. People need to be recognized; give us an
opportunity to shine by doing something that really has impact — make SI a
prestigious place to be
75% of the local residents would like something to change in the community, but
they would like someone else to do it
Source: RA and EF Hutton Interviews conducted by VE Team
— 65 —
©2007 ViTAL Economy, Inc.
3.05 Adaptability to Change


Where is SI Today and
Where It Needs to Go
The following two slides capture what we call “SI’s Big
Dilemma”:

Current State = A Climate of Limited Opportunity

Desired Future State = A Climate of Unlimited Opportunity
The remaining slides in §3.05 provide:

An assessment of SI’s progress vs. the Eight Steps to Managing
Change

What changing SI’s thinking means

What needs to change to get to your desired future state

Applying the principles of “The Starfish and the Spider”

Summary: fertile ground for change
— 66 —
©2007 ViTAL Economy, Inc.
3.05 Adaptability to Change
SI’s Big Dilemma:
Climate of Limited Opportunity
Resulted in
only 1.35%
AAGR for last
25 Years
•
•
•
•
•
•
•
•
•
•
Mindset: willingness to accept mediocrity and
lack of a sense of excellence
Insufficient climate of collaboration and trust
making change very difficult
Continuing belief that “the cavalry is coming”
despite proof to the contrary
Losing the best and brightest
Lack of participation in the global economy
Continued focus on traditional economic sectors
in decline rather than rising economic sectors
Climate of economic (and community) despair
Public policy/funding priorities reinforce old
economy strategies, and inhibit new ones
•
SI’s
Current
State
•
Fragmented and
poorly leveraged
Primary focus on
local opportunities
Insufficient # of
visionary leaders
Too many political
boundaries
SI’s future hangs in the Balance!
— 67 —
©2007 ViTAL Economy, Inc.
3.05 Adaptability to Change
SI’s Potential:
Climate of Unlimited Opportunity
Results in over
3.85% or better
AAGR for
NEXT 25 Years
•
•
•
•
•
•
Less willingness to accept mediocrity
Improving climate of collaboration and
trust making change less difficult
Losing fewer of the best and brightest
Less focus on traditional economic
sectors in decline
Less of a climate of economic despair
Public policy/funding priorities shifting
SI’s
Future
State
•
•
•
•
•
•
Growth & prosperity realized!
— 68 —
Linked across SI and
highly leveraged
Active visionary leaders
Collaboration abounds
Boundaries are being
crossed
New behaviors
Global focus
©2007 ViTAL Economy, Inc.
3.05 Adaptability to Change
Eight Steps for Managing Change and
Transforming Your Organization
1.
Establish a Sense of Urgency — builds the motivating force necessary to make the
change worthwhile for each individual and the community as a whole
2.
Form Powerful Guiding Coalitions — provides the necessary leadership to bring
disparate groups together and foster collaboration across boundaries
3.
Create a Vision — aligns leaders and participants to common goals and a
compelling view of the future
4.
Communicate the Vision — builds understanding & participation; the bigger the
network, the more collaboration can occur, the more powerful the change
5.
Empower Others to Act on the Vision — proves to the community-at-large that the
decision-making hierarchy and concentrated power base of the past is changing
6.
Plan for, Create & Communicate Short Term Wins —demonstrates that real
change is occurring and helps those from Missouri (“show me”) to get on board
7.
Consolidate Improvements & Produce More Change —builds momentum, making
it easier for those on the sidelines to “take the risk” in joining the effort
8.
Institutionalize New Approaches — provides the foundation for repeatability as
more and more leaders and potential participants emerge
— 69 —
©2007 ViTAL Economy, Inc.
3.05 Adaptability to Change
Access Criteria
Eight Steps to Managing Change:
Assessment
Rating
Assessment Rationale
Establish a Sense of Urgency
• COI’s have identified a compelling sense of urgency specific
to their sub-region; these need to be more widely reinforced
Form Powerful Guiding Coalitions
• Each of the six COI’s has a functioning leadership team,
however this number needs to grow substantially
Create a Vision
• 3 of the 4 COI’s did “visioning” as part of the Milestone 4
process; these also need to be more widely reinforced
Communicate the Vision
• These visions need to be encapsulated and shared with a
increasingly larger numbers of region citizens
Empower Others to Act on the Vision
• Most COI subteams worked well together; CSI & COI leaders
have not effectively expanded the base of champions beyond
a core group — more are needed to reach the Tipping Point
Plan for, Create & Communicate
Short Term Wins
• Many short-term wins have been identified; these need to be
implemented and celebrated across SI
Consolidate Improvements &
Produce More Change
• Decision making structures across SI have not been modified
based on use of collaborative processes.Leadership is
beginning to revert back to old and familiar command &
control formulas
Institutionalize New Approaches
• The Crossing Boundaries Institute and other Phase 2
activities will help spread the effort toward critical mass
— 70 —
©2007 ViTAL Economy, Inc.
What Changing SI’s Thinking Means
3.05 Adaptability to Change
“The pie is not growing”
“We can & must grow the pie”
FROM:

Too many past economic efforts
that fizzled out

Trading dollars and fighting over
the same customers

Viewing the adjacent towns as
competitors

Lack of awareness regarding
regional assets or leverage
opportunities

Continually waiting for the ‘cavalry’
to arrive and rescue us

Distrust and cynicism — it’s just a
win-lose game

Widespread feelings of apathy &
powerlessness
TO:

Real economic growth tracked by
tangible metrics

Creating whole new markets and
customer bases — globally

Collaborating across the whole
20 county region

Valuing of what makes SI unique &
how to leverage this

Connecting resources and
rescuing ourselves from the ground
up

Growing trust and realizing true
synergy

Widespread feelings of success
and even greater potential
Collaboration builds critical mass and creates a climate of unlimited economic opportunity!
— 71 —
©2007 ViTAL Economy, Inc.
What Needs to Change?
3.05 Adaptability to Change

In order for SI to create a true Climate of Opportunity, several shifts
have to occur:

From deeply held beliefs that you cannot change the circumstances of
your economy or community to a new deeply held belief that we can
change by leveraging the unique value and self-worth of everyone in SI

From multiple, separate, town-based, silo structures & territorial thinking
to regional connected structures that cluster across the value chain
From concentrated power & the limiting behaviors of the past to ‘flatworld’ behaviors of collaboration, flexibility, 24/7, rapid actions,
nimbleness and trust


For Connect SI this translates into three immediate and high priorities:



Expand the leadership base of believers & doers one-by-one
Expand the base of collaborative funding
Communicate, communicate, communicate the sense of urgency, vision,
short-term wins, what needs to change, this RA and your strategy
— 72 —
©2007 ViTAL Economy, Inc.
3.05 Adaptability to Change

Applying the Principles of
“The Starfish and the Spider”
This insightful book provides ten rules for moving from a Spider organization (aka
centralized power and hierarchical structure) to a Starfish organization (aka
decentralized, amorphous, virtual network of collaborators)
Diseconomies of Scale — being small can be better due to nimbleness
The Network Effect — overall value of the network increases with each added member
The Power of Chaos — stimulates creativity and freedom of choice
Knowledge at the Edge — the ‘front-line’ in the rank & file of an organization has the best
understanding of the challenges it faces
5. Everyone Wants to Contribute — give folks the freedom to contribute and they will (e.g.,
Wikipedia)
6. Beware the Hydra Response — Starfish organizations are not easy to ‘kill’; they keep
replicating themselves and spreading
7. Catalysts Rule — they inspire people to action, and leave before power gets centralized
around them
8. The Values are the Organization — take away a Starfish’s ideology and the organization
will crumble
9. Measure, Monitor and Manage — done by a catalyst: a combination of architect, cheerleader and awe-struck observer; it’s better to be vaguely right than precisely wrong
10. Flatten or be Flattened — if you can’t beat them, join them; what looks like entropy at first,
turns out to be one of the most powerful forces the world has seen
1.
2.
3.
4.

Starfish organizations are a key strategy SI can deploy to leverage its unique assets
across the region — see Chap 4 for a Starfish-based Innovation Eco-System and
Comprehensive Connect SI Community & Economic Development Strategy for
more detailed recommendations (to be posted in Feb 2008)
Source: Starfish and the Spider, Brafman & Beckstrom 2006
— 73 —
©2007 ViTAL Economy, Inc.
Summary: Fertile Ground to Change
3.05 Adaptability to Change




Citizens across SI do see the stark reality and understand what needs to
change
The good news:

Awareness of this reality goes far and wide

Folks, young and old, want SI as a region to finally deal with this
The bad news:

There is a deeply held belief that neither individuals, nor SI as a whole, will change

Far too many lifelong SI residents have become numb to the decades of gradual
decline in so many communities
SI is at a crossroads — and there are reasons for hope:

The concept of One Region-One Vision is gaining traction

There are pockets of prosperity — so it can be done

Short-term wins across SI are providing further “proof” that the collaborative
approach works — building momentum is key

Remember Pogo: “We’ve met the enemy and he is us!”

The TIME is now; the CHOICE is yours — all it takes is will and leadership
If you’re going to have a self-fulfilling prophecy, let’s make it a great one!
— 74 —
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
Chapter 3:
Enabling Environment
3.06 Implications & Recommendations
— 75 —
©2007 ViTAL Economy, Inc.
Enabling Environment by Sector
(1 of 3)
3.06 Implications & Recommendations
Attributes in Place for
Success
Global Workforce
Opportunities
KBE Employment
and Businesses
Senior Living
Roadblocks in the Way of
Progress

A robust inventory of education and
workforce development programs and
facilities

No comprehensive strategy and funding
system linking K-12, college and University
programs to a measurable goal

Central North American location


A history and connections to oversees
students, governments, educational
institutions and businesses
Weak linkage and collaboration between
business and education

Limited 24/7 availability of continuing
education programs at graduate level

Natural amenities and location
advantages support KBE firms & workers

Non-existent reputation of SI as a
knowledge-based economy

A major research University within region
with tech-transfer opportunities

State economic development programs
focusing on traditional businesses

Affordable cost of living

No community development standards that
result in lack of predictability

Lower cost of living supported by a mild
climate, lots of active recreation options

Reputation of limited access and quality of
healthcare

Multiple life long learning assets


Growing cultural and unique events in the
region
Low property curb appeal and quality of
public spaces

Narrow understanding of senior living trends
and impacts

Improved network of healthcare assets
— 76 —
©2007 ViTAL Economy, Inc.
Enabling Environment by Sector
(2 of 3)
3.06 Implications & Recommendations
Attributes in Place for
Success
Energy and Mining
Tourism
Roadblocks in the Way of
Progress

One of the largest reserves of coal
resource in North America

Lack of a clear strategic direction with a
defined benefit to industry

An expansive knowledge base and
research regarding energy, coal mining
and oil extraction

Economic development approaches are
focusing on extraction with limited attention
to KBE possibilities

Significant state and national attention
and resources targeting alternative uses
for traditional energy

The energy industry have faced multiple
and complex challenges over the past few
decades that have created more
competition and less collaboration

Multiple unique natural tourism
attractions


A robust collection of historical locations
and knowledge
Lack of regional tourism coordination and
trust reduces the regions ability to attract
attention

Policies and funding systems support a
traditional territorial approach to tourism
organizations which creates a climate of
competition rather than leverage

Lack of balanced and modern tourism
infrastructure around the region

Examples of successful tourism
collaborations in the region; Wine Trail

Financial resource generators are in
place to support a region-wide effort

Location & climate advantages
— 77 —
©2007 ViTAL Economy, Inc.
Enabling Environment by Sector
(3 of 3)
3.06 Implications & Recommendations
Attributes in Place for
Success
Transportation,
Logistics and
Warehousing
Climate of
Economic
Opportunity
Roadblocks in the Way of
Progress

Geographic location, with multiple
highway, rail, marine and air
transportation assets

Projects and infrastructure expansions have
been done independently without
connection to other assets

A significant industry base and critical
mass exist to build upon

Lack of comprehensive planning

Disaggregated workforce and labor issues

Belief that economic pie of opportunity is
very limited. If we share we lose.

Some would rather be in control of a smaller
economy rather than share control in a
larger economy

Public policies have not shifted to meet the
needs of a changed economy

Multiple governmental jurisdictions hinder
the regions ability to collaborate

Inland waterway trends are positive

Connect SI as a framework for a new
economic direction and strategy for the
region

Creating region-wide collaboration

Articulating the vision of the future

Development of a strategy and
measuring progress and impact

Prioritizing application of resources in
the optimum manner

Tracking and informing the region of
national and global trends

Identifying and applying the best
resource for a favorable impact
— 78 —
©2007 ViTAL Economy, Inc.
Enabling Environment Implications
3.06 Implications & Recommendations

Lack of collaboration is hampering prosperity



Listless business climate for retention and attraction



The recent expansion of broadband service, supported by a clearly defined goal is
positioning SI for KBE growth and attraction
SI’s natural environment is not valued or leveraged by a sufficient number of
its citizens or leaders


Illinois’ court system is rated as unreasonable to business
Multiple government and taxing districts cause a confusing business environment
Telecommunications expansion is a marketable opportunity


Creates a climate and reputation of conflict and distrust
Results in an inability to fund or achieve project success due to lack of resources
The region has the largest concentration of natural environment assets in the Midwest, but is not returning its share of benefit
Reluctance to change will guarantee an atmosphere of dependency


The new economy is changing faster than ever before primarily driven by innovation
and technological advancements that will not wait for individuals and companies to
keep pace
Rural regional economies that can effectively meet the workforce needs and
business demands of a KBE economy will be the envy of others
— 79 —
©2007 ViTAL Economy, Inc.
3.06 Implications & Recommendations


Enabling Environment:
Recommendations
Improving the enabling environment is the key to addressing SI’s Big Dilemma

The results of the Readiness Assessment clearly demonstrate that SI behavior and mindset is
the only thing standing in the way

Without the changes proposed in this chapter, SI will be far less able to leverage its unique
indigenous resources to take advantage of current global and national trends
Our primary recommendations:
#1 — Incorporate collaborative funding as a fundamental part of the DNA of SI
#2 — Create a Crossing Boundaries Institute linked into existing leadership programs
#3 — Implement a regional multi-media branding strategy for internal and external markets
#4 — Implement a Youth Engagement Strategy
#5 — Implement broadband connectivity infrastructure and digital literacy strategy
#6 — Establish a Comprehensive SI Data Mining Portal that is a model for Illinois
#7 — Develop an SI livable community forum

See Chapter 7 for more detailed recommendations
The successful transformation of SI from a limited to an unlimited growth economy
depends upon the ability of the Region to change it’s thinking & behaviors
— 80 —
©2007 ViTAL Economy, Inc.