Eric Hansen and Alan Hald

Transcription

1 Accelerated Clustering & Implementation in the New Economy An An Interactive Interactive Workshop Workshop Eric Hansen and Alan Hald Economic Economic Transformations Transformations Group, Group, Inc. Inc. 4 th 4 th th Annual TCI Conference Tucson, Arizona October Neoconomy, Neoconomy,, Inc. Inc.

2 Objectives! How to improve the art of cluster implementation! Challenges to getting to action! National level! State/regional level! Local community region level

3 The Challenge of Implementation Only a few clustering efforts around the world are resulting in profound, sustainable change and improved economic competitiveness. Why? Typically, clustering efforts founder at a critical time in in the transition from the analysis and strategy development phase to the implementation phase. Why? Because moving into action is difficult and most clustering efforts do not succeed in creating the required grass-roots roots commitment of business and government leaders nor do they understand the mechanics of implementation.

4 Typical Phases of Clustering Projects I. Analysis II. Strategy Development III. Implementation Most projects get stuck in analysis or strategy development phases and never get to implementation. Often, the cluster analyses and reports are done, but the stakeholders and beneficiaries are not sufficiently engaged in order to ensure sustainable implementation.

5 What is Implementation Success? 1. How do we measure results? Visible Results (economic performance, capacity indicators) Invisible Results (social capital, confidence, etc.) High performance economies-- --Examples "Arizona "Silicon Valley "Chihuahua

6 Arizona s Growth Model GROWING CLUSTERS VITAL CYCLE DYNAMICS STRONGER FOUNDATIONS

7 Arizona #1 in 2000! Arizona ranks #1 in national job growth! Job Growth: Tucson is #1 Metro in US (4.6%)! Phoenix #2 in Job Growth for large metro areas (>1m pop)! Optics cluster revenues increase from $.5m in 1979 to $750m in 1998

8 Organizing for Action: Public-Private Action Agenda to Rebuild Silicon Valley OBJECTIVE Develop Specialized Infrastructure INITIATIVE Smart Valley, Inc. 21st Century Workforce Silicon Valley Technologies Corp. Reduce Cost of Doing Business Regulatory Forum Council on Tax & Fiscal Policy Health Care Task Force Retain & Expand Existing Industry Defense/Space Consortium Silicon Valley Global Trading Center Economic Development Team Support Growth of New Industry Environmental Partnership Software industry Coalition The Enterprise Network New Business Incubation Clusters

9 Chihuahua Cluster Development

10 Chihuahua: Top 5 in Job Creation Thousdand of Employees FUENTE: IMSS

11 INVESTMENT ATTRACTION PROGRAM Chihuahua Now! # 41 Projects for 1997 # Investment of US$ millions, highest in all of Mexico # Generating approx. 19,105 direct jobs

12 State Competitiveness Index (ITESM) Nuevo León 2 Distrito Federal 3 Jalisco 4 Baja California 5 Sonora 6 Chihuahua 7 Coahuila 1 Nuevo León 2 Baja California 3 Chihuahua 4 Querétaro 5 Coahuila 6 Jalisco 7 Distrito Federal

13 Invisible Results Increase in Social Capital Long term vision and strategic plan Greater confidence in ourselves Greater confidence between us Search for sectoral balance and regional equity The capacity to establish intra- and inter- sectoral alliances and networks

14 Essential Dimensions in the Art of Implementation " The spirit of implementation what really drives implementation? " Leadership " Motivation passion, self-interest, negotiated self- interest " The mechanics of implementation " Overall Process Design " Implementation Framework

15 Key Ingredients for Implementation Integration of Analysis & ACTION Mindset & Behavioral Change Leadership Mobilized Public-Private Private Civic Commitment Overall Human Process Design

16 Implementation Success Factors How well have regions done?! Strength of Core Leadership Group! Arizona, Chihuahua, Silicon Valley, North Dakota! Morocco, Kansas! Public-Private Private Buy-in! Arizona, Silicon Valley, Campeche! Connecticut, North Dakota! Organizational Structure! JV-SV, Campeche,, Morocco! Chihuahua, Kansas! Strength of Cluster Staff Team! JV-SV, Chihuahua! LA, Florida

17 Small Discussion Group Organized into 3 Areas "National-level level clustering "Regional/State-levellevel clustering "Local/community-level level clustering

18 Implementation Session in Action Alan Hald Eric Hansen

19 Questions for Discussion 1. Identify 3 key ideas about implementation that caught your attention today. 2. What are the 3 most important barriers to implementation for your area? 3. Identify 3 most important elements for successful implementation in your area.

20 Report Backs- Barriers to Implementation! Local-level level Clustering Efforts! Total ignorance! Getting business engaged! State/Regional Clustering Efforts! Politics! Geographical preferences/rivalries! Lack of trust among entrepreneurs! What s in it for me: Need for Education about coopetition coopetition! Resistance to change! Lack of social capital! Enrolling and sustaining volunteers to drive the strategy! Status quo old wine in new bottles! National Clustering Efforts! High initial expectations about the process! Lack of sustained support at govt/political level! Lack of understanding and confidence in clustering process

21 Report Backs Key Elements to Successful Implementation! Local-level level Clustering Efforts! Champions! Early success! Communicate success! Market the potential of clusters! State/Regional Clustering Efforts! Celebrate success, identify success stories! Implementation driven by private sector! Need CEO participation & leadership! Ownership and participation at all levels! Establish measurable goals, w/ quick hit! Cooperation of key players (univ( univ.. Govt. Private sector) key role of univ.! Willingness to change and take risks! Motivated and focused leadership team (private sector preferable but, if not go with govt (eg.scottish Enterprise)! Self-interest, $$, ROI to motivate the process! Clearly identified common interests! Strong passionate private company leadership! Buy-in from business, govt,, and academia! Funding $$! Active business leadership! Leverage what exists, don t fantasize! Show them the $$, the bottom line why important to leaders! Construct a future contract between business govt make them sign it.! National Clustering Efforts! Need consistent policy framework across national govt! Building trust and collaboration! Focus on early gains! Govt intervention and partnership to address market failures! Build nat l commitment to collaborate econ dev.! Understanding the the politician

22 What Worked? Achieved order from chaos Common thread to process Natural roles Effective interaction Helped educate each of us Pertinent answers Good use of time FUN! We stayed awake in the afternoon Intense interaction Gained respect for others New contacts Needs Improvement Dots didn t stick, no yellow dots Too many questions Q1 & Q3 were too similar Superficial Session was late the day, Interrupted Happy Hour, more alcohol Report Backs Feedback about the Process Validation from other professionals Teaching us free thinking Sense of collaboration & clustering Cooperation among competitors Cooperation from all disciplines Action and speed Osmosis Free flow of opinions Quick consensus process Clear questions Inclusive Enlightening Too little time to share, explore How to is missing Only 1 woman at our table More consistent instructions Table Moderator & all leadership were women (minority viewpoint)

23 For Further Information: Eric R. Hansen Economic Transformations Group, Inc. Alan P. Hald Neoconomy Inc.