Central Illinois Regional Economic Development Strategy Setting the Foundation

1. Central Illinois Regional Economic Development Strategy Setting the Foundation Woodford Peoria Tazewell July 26, 2012 ViTAL Economy Alliance Frank Knott - fknott@vitaleconomy.com Steve Martin – steve.martin@intervistas.com Mark Madsen – mmadsen@priorityone-advisors.com Mason

2. Foundation Event Agenda • Welcome – Larry Whitaker, Chair Tri-County RPC and Jim Baumgartner, Caterpillar, Inc. • Extraordinary Point in Time – Larry Whitaker, Chair Tri-County RPC • What Will Be Different? – Frank Knott, ViTAL Economy • Regional Economic Benchmark & SMART Goal Setting – Mark Madsen • BREAK • Start Building the Foundation – Breakout Sessions • Quality of Place Statement • Define the Sense of Urgency • S.M.A.R.T. Goal Setting and Framework • Reconvene, Report and Respond • Closing Remarks – Jim Baumgartner, Caterpillar, Inc.

3. “How We Got to This Extraordinary Point in Time” Larry Whitaker, Woodford County Tri-County RPC, Chair Woodford County Board Member -14 Years Woodford County Board Chair – 2002-2006

4. What We Discovered and What Will Be Different! • Initiative Overview Frank Knott ViTAL Economy, Inc.

5. What You Said You Want to be Different This Time Bottom up and top down input and influence on regional strategy Address CI’s natural economy versus artificial “split” boundaries (i.e., MPO-3, EDD-4, MSA-5, ByWays-10, Transport-6) Include economic gardening, minority businesses and other sub-sets Establish priority industry sectors for targeted focus Use an assessment methodology to revisit measurable strategy & goals Establish clear role definition between cities, counties and region Be truly regional… based on perception and belief that new investment in the region benefits all towns, counties and citizens. Ability to work with other regional jurisdictions beyond Central Illinois

6. Policy Steering Committee HUD-HISC* How Regional Strategy Governance Addresses Your Concerns County Boards • Six Initiative Teams • Framework Teams • RPC, HP, WIB, EDC • Technical Working Group • Data Center of Excellence • Workforce Center of Excellence • Leadership Training Program • Innovation Ecosystem • Equity & Debt Finance System • E-connectivity Strategy • Multiple Action Teams • County Teams • Peoria, Tazewell, Woodford, Mason * HISC = Heart of Illinois Sustainability Consortium

7. 3 of 4 Top Barriers to Collaboration Are in the Control of Tri-County Region Most frequently-cited barriers to success • Typical responses: • “We have internal competition issues that leads to duplicative efforts….” • “Need one unified economic voice for region. Several groups moving in conflicting directions….” • “Lack of willingness by some to work together” Source: Central IL Phase 1 Findings Report, April 12, 2012, ViTAL Economy Alliance

8. Keys for Sustainable 21st Century Regional Economies Process – Based on Best Practices for Regional CED & Collaboration Regional Focus – Enables regions to compete against country strategies Asset-Based – Indigenous assets grow more durable economies Diversified – Makes for a more nimble & resilient economy! Measurable Strategy – Responsive to trends…relevant to region Disciplined & Consistent – All ideas are not equal…priorities matter

9. Issues of Challenge & Opportunity Data Information Knowledge Implications Opportunity Action Demographics – Population mix required for 21st century workforce Workforce – 63% of 2018 workforce will require beyond high school ed. Climate of Innovation – Key to prosperity & economic growth Knowledge Based Enterprises (KBE) – Create most high value jobs Quality of Place – 50% of attraction for KBE worker’s families

10. Implications of Workforce Supply versus Skill Requirements $/hour & skills Developed Economies Labor Market Lack of resources creates tension on the high-skills market Pronounced over-supply of low-skill labor resources creates unemployment Need to increase skills of lower end of workforce Supply of workers Men Women Demandfor workers Number of people available/required by skill level High-Skill Labor Mid-Skill Labor Low-Skill Labor There is an oversupply of low-skill workers and shortage of higher skilled workers

11. 2010 Implications of Demographic Change • 1990-2010 Central Illinois • The prime source of current and future workforce (ages 0-44) declined from 66.1% to 58.2% = 13% decline • The soon-to-retire (age 45-65) went up from 19.9% to 27.0% = 35.6% increase • Over 65 population increased slightly from 14.0% to 14.8 % of total population • Implication – • Where is the future workforce going to come from? Source: Census Bureau

12. Improve Climate of Innovation – Use Performance Metrics to Move Needle “ For adults 25 to 64, most job growth is coming from entrepreneurial companies and start-ups…” Deb Markey, RUPRI 2011 Greater Peoria Scorecard – courtesy Heartland Partnership & Bradley University

13. Regional CED Strategy Initiative Overview • Initiative Overview Frank Knott ViTAL Economy, Inc.

14. Launching a ViTAL Economy Journey Informs Informs Phase I Strategy Phase II Implementation Phase III Institutionalize Each Phase Typically Last 12 – 18 Months Knowledge Transfer Leadership Training Increase Collaborative Leaders Imbed Change Management Regional ED Governance Model Collaborative Funding Sustained Achieve Five Year Goals Establish Innovation Culture VE Journey is Way of Life Establish a Sense of Urgency Leadership Development & Training Economic Benchmark 5-year Goal Setting Economic Vision Quality of Place Vision Prioritized Indigenous Assets Targeted Industry Clusters Industry Cluster Opportunity Innovation Ecosystem Leadership Training Livable Community Strategies Youth Engagement Collaborative Finance Structures Regional Branding Strategies Economic Measurement Systems Integrated Workforce Strategies

15. Phase 1 - Four Milestone Process and Schedule Interim CEDS Report X- Milestone Meetings • Foundation • Leadership Team • Existing Research • Sense of Urgency • Issues of Challenge & Opportunity • Economic Benchmarking & S.M.A.R.T. Goal Setting • Recruitment Plan • Phase I Objectives • Discovery • Regional CED Professionals Asset Mapping Training • Indigenous Resource Asset Mapping, Region, County • Special Topic Asset Mapping • Launch Action Teams • Connect • Analyze Asset Mapping & Develop Leverage Strategies • External Resource Identification • Connectivity Strategy to Link Mapped Assets • Identify Targeted Industry Clusters • Refine Regional Goals • Report • Prepare Final 5-year Report, Budget, Framework, Roadmap • ROI Criteria • Community Strategy Presentation • Recommendations for Phase 2 • Implementation plans Milestone Outcomes • Establish Leadership • Sense of Urgency • Quality of Place • Set S.M.A.R.T. Goals • Identify Unique Assets • Leverage Strategies • Action teams • Regional CED Priorities • Target Industry Clusters • County CED Priorities • Comprehensive, Measureable, Sustainable Strategy

16. Region vs. County Relationships Regional Four Milestone Process Peoria Tazewell Woodford Mason • Counties Teams will: • Characterize the County economy in relationship to the region • Set the County goals as percentage of regional goals • Establish unique County economic indicators & goals • Identify unique high value assets in the County • Build collaboration between Counties, Town, and Villages by linking assets across boundaries • Expand ownership of CED at the County, Town, and Village level

17. Phase 1 Four Milestone Outcomes • Fully Measurable County level Strategies • Fully Measurable Regional Strategies • Implementation Plan and Roadmap • Comprehensive Budget • Collaborative Funding Plan Leads to Phase II – Implementation

18. Needs-based vs. Asset-based CED Strategic Categories Needs-based Asset-based Focus Negative Positive External Local Leadership Others Knowledge Strengthens Confidence Capacity Reinforces Fragmentation Connects Existing Resources Collaboration Resources Moving Target Local Control Growth Limits Speeds Consistent and Relevant Measurement Disconnected

19. Eight Steps for Leading Change are Essential 8. Make it Stick Implementing & Sustaining Transformation 7. Sustain the Change 6. Create Short-term Wins Engaging & Enabling the Whole Community 5. Empower Others to Act 4. Communicate for Buy-in Creating a Climate for Change 3. Define the Change Impacts Start Today! 2. Create the Vision & Build the Guiding Team 1. Create a Sense of Shared Need & Urgency Based on Kotter, John P. Leading Change. Boston: Harvard Business School Press

20. Mark Madsen, ViTAL Economy Alliance Regional Economic Benchmark and S.M.A.R.T. Goal Framework

21. Performance Based Metrics • State & Regional Scorecards • Point in time benchmark, without trend analysis • Limited measurements at the County level • Comparison to “like” communities • Core Performance Metrics • Focus on factors that guide wealth creation/retention • Designed to establish job goals at three levels • New high wage jobs • New average wage jobs • Improvement of existing jobs by $5,000/year • Trend Analysis • Benchmarks • 5-year goal setting • On-going measurement • Region Unique Metrics • Directly linked to region unique challenges and opportunities • Informed by elements of Sense of Urgency and Quality of Place

22. Specific Measurable Achievable Relevant Time Based

23. Linkage S.M.A.R.T. Goal Setting Framework Greater Peoria Economic Scorecard ViTAL Economy Core Economic Indicators Regional Issues of Challenge and Opportunity Population Labor Participation Rate Average Wage Educational Attainment Associates/Technical Certificates 20-45 Age Demographic Immigration Population % TBD by regional leaders 2017 Regional Economic Vision County Goals and Strategic Role Peoria County Mason County Tazewell County Woodford County

24. Industry Sectors Five Year Regional Goals Forestry Ratio of Net Earned income To Total Income ↑ .566 to .65 Increase Median Annual Income AS/some College to $32,000/yr. Increase Median Annual Income Bachelors Degree to $32,000/yr. Increase 20-44 age Employment 20% Increase AS/Tech Certs. For 18-24 age From 38% to 47% Increase Pop of 25-44 ageby 20% Agriculture Healthcare Tourism Information Tech Education Manufacturing Energy Balanced Strategic Approach – Southern Vermont Goals Inform Strategic Components CEDS Planning Business Retention & Expansion Business Recruitment Business Incubation Leadership Training Strategy Action

25. Regional S.M.A.R.T. Goal Setting Example – Southern Vermont 2017 Goals

26. Central Illinois Benchmarks & 2017 S.M.A.R.T. Goals

27. Overview Purpose of Breakout Sessions • Initiative Overview Frank Knott ViTAL Economy, Inc. Regional Sense of Urgency – Frank Knott S.M.A.R.T. Goal Setting – Mark Madsen Quality of Place – Steve Martin

28. Foundation Milestone Calendar Foundation Milestone Event TWG Review Action Teams TWG Review Refine S.M.A.R.T. Goals Initial Regional S.M.A.R.T Goal Setting SC Approval SC Approval Quality of Place Statement TWG Review SC Approval Regional Sense of Urgency TWG Review SC Approval EDC Approval & Submittal Regional CEDS Draft Development* Public Comment * S.M.A.R.T. Goals will continue to be refined after initial CEDS is submitted. CEDS deadline will not be allowed to diminish quality of goal setting action team work effort. Refined S.M.A.R.T. goals will be continuously improved throughout Phase 1 as more information is obtained. Discovery Milestone Event

29. Regional Sense of Urgency Frank Knott ViTAL Economy Create a concisestatement and visual element that gets immediate attention, motivates citizens and energizes participation. The final statement should be compelling with an emotional angle. Facts, themes, impressions that represent the positive (opportunities) or negative (issues) topics facing a community. Draft by August 30, 2012. Foundation breakout session plus 1-2 additional development and refinement conference calls. Objective: Input Content: Timeline:

30. S.M.A.R.T. Goal Setting Mark Madsen, ViTAL Economy Alliance Establish a quantitative economic vision for the region consisting of core and unique performance metrics. S.M.A.R.T. goals principles will be instituted during the development process. • 2010 benchmark and trend data for core and unique indicators. Unique indicators will be determined based upon regional priorities. • Version #1 Draft by August 10, 2012. Version #2 Draft by Foundation breakout session plus 1-2 additional development and refinement conference calls. Objective: Input Content: Timeline:

31. Quality of Place Statement Steve Martin ViTAL Economy Alliance Create a concise statement describing what is special, unique and important about the Central Illinois region to the citizens that live there. What do the citizens value? The statement should include words, themes and impressions that are truthful and authentic to the citizens. • Description opinions, statements and impressions expressed by a wide variety of citizens. • Draft by August 30, 2012. Foundation breakout session plus 1-2 additional development and refinement conference calls. Objective: Input Content: Timeline:

32. Break Announcement • and • Elite Pulses of Hope

33. Elite Mantra – Everyone SHOUT it OUT! Q. What’s your name? Q. Who do you serve? Q. How do you serve? Q. How does respect work? Q. What’s your job? Q. How do you get paid? Q. Where are you going? Q. Who can stop you? No they can’t, because what’s your name?

34. 20 Minute Break Thank you Carl Cannon and the Peoria ELITE Youth Program Please enjoy a 20 minute break and then promptly gather for your assigned breakout session

35. Reconvene, Report & Respond • Quality of Place Statement • Regional Sense of Urgency • S.M.A.R.T. Goal Setting • What did you find new different and important for today's session? • What is worth your time, talent and treasure to participate in the initiative over the next 12 months? Report Respond

36. Workshop Input – Build the Foundation What are the region’s issues of Challenge and Opportunity • Opportunities • Challenges

37. Quality of Place Report Out by... … …

38. Sense of Urgency Report Out by… … …

39. S.M.A.R.T. Goal Setting Report Out by… … …

40. What Did You Find To Be New & Different… What Will Make it Worth Your Time…

41. Thank You • Jim Baumgartner, Caterpillar

42. Wrap-up • Frank Knott, ViTAL Economy

43. The Regional Strategy Policy Steering Committee: Jim Baumgartner Chuck Weaver Diana Hall Eric Turner Jim Montelongo Doug Parsons Steve Morris John Erwin Mike Everett Dan Daly Bola Delano Colleen Callahan Dean Grimm Russ Crawford Jehan Gordon Debbie Simon Mike Unes James Griffin Bob Parsons Norm Durflinger Don Welch Rita Kress Don Forrest Larry Whitaker Mike Phelan Mike Hinrichsen Patrick Urich Gordon Honegger

44. Next Steps Need 10 to 15 people to sign up for each Action Team • Sense of Urgency • Quality of Place • S.M.A.R.T. Goal Setting • Sign up Now! Teams will meet two or three times between now and end of August. ViTAL Economy will provide remote support via WebEX conference call. Results will be integrated into the Interim CEDS document. County level input will be solicited and refined for presentation at the Discovery Milestone Meeting in early October.

45. Thoughts to Take Home With You This Evening: 1. There is widespread and deep public and private support behind this initiative . 2. This process is highly structured and driven by specific, measureable goals and objectives. Your input matters. Each of you can make important contributions. Your community, your county, and your region will achieve real results because of this effort.

46. Not the End – Just the Beginning Empowered Central Illinois citizens, business leaders, and civic leaders working together in collaboration, taking control and stewardship of their economic future.