©2008 ViTAL Economy, Inc. — 1 — Greater Wabash COI: Strategic Roadmap March 19, 2008 Wabash Valley College ViTAL Economy Alliance Frank Knott, Project Lead; Stan Halle, Senior Editor; Jim Haguewood, Rob Beynon, & Neil Gamroth, Principal Economic Researchers Southern Illinois: Garden of the Gods

©2008 ViTAL Economy, Inc. — 2 — COI Perspective: Greater Wabash Sense of Urgency Population decline — educate them but they leave More jobs outside of the area Lost appreciation of the area Rekindling the romance for the area: o The Beauty of the place that we live o Our quality of life o The positive attitude of the area “Live, Work, Play and Stay in Southern Illinois” — and create excellence generation to generation Prosper in spite of Springfield! Stop the population drain — what we can do now! Sense of Urgency Population decline — educate them but they leave More jobs outside of the area Lost appreciation of the area Rekindling the romance for the area: o The Beauty of the place that we live o Our quality of life o The positive attitude of the area “Live, Work, Play and Stay in Southern Illinois” — and create excellence generation to generation Prosper in spite of Springfield! Stop the population drain — what we can do now! Challenges: Spirit of poverty! Youth brain drain Need to change our attitude No collaboration between risk takers Lack of discussion due to territorial battles Lack of appreciation of business by public officials Opportunities: Take control of our own destiny Tap our youth — get them engaged in this process Publicize our great assets — what makes us unique Tie colleges to skill needs; educate our parents! Leverage our renewable resources in this area; not just raw exports — invest in non- renewable as well Fill key gaps (e.g., need Pediatrics, Obstetrics); lots of ripple effects GW COI Goals 1,381 New 5,280 Existing Jobs Raised by $5,000/Year 920 jobs at the new average wage $36,517 $36,406 Per Capital Income GW COI Goals 1,381 New 5,280 Existing Jobs Raised by $5,000/Year 920 jobs at the new average wage $36,517 $36,406 Per Capital Income Regional Economic Benchmarks Population51,42153,000 Total Employed26,40027,746 Average Wage$26,311$36,517 Total Wages$694.6M$1.013B See: RA Chapter 6 Is SI worth fighting for?

©2008 ViTAL Economy, Inc. — 3 — Regional Assets Heartland of America location, equidistant to 2/3 of U.S. markets, central to economic expansion of the Americas SIU - a major R&D university with 60+ years history serving students from over 100 world cultures supports global KBE growth Robust education and training resources position SI for global workforce training opportunity Mild climate, unique natural environment, active lifestyle assets, arts and culture amenities, attractive quality of life characteristics are important factors for KBE, tourism and senior living growth Inter-modal logistics, transportation and distribution resources have a strong foundation in SI SI has plentiful legacy and alternative- energy assets. SI is a coal leader and is strong in 2 of 4 areas of projected alternative energy growth by 2030 Heartland of America location, equidistant to 2/3 of U.S. markets, central to economic expansion of the Americas SIU - a major R&D university with 60+ years history serving students from over 100 world cultures supports global KBE growth Robust education and training resources position SI for global workforce training opportunity Mild climate, unique natural environment, active lifestyle assets, arts and culture amenities, attractive quality of life characteristics are important factors for KBE, tourism and senior living growth Inter-modal logistics, transportation and distribution resources have a strong foundation in SI SI has plentiful legacy and alternative- energy assets. SI is a coal leader and is strong in 2 of 4 areas of projected alternative energy growth by 2030 Connecting SI’s Assets and Trends to 2012 Goals >$2 Billion New Annual Wages >$2 Billion New Annual Wages 41,461 Existing Jobs >$5,000/Yr 41,461 Existing Jobs >$5,000/Yr 27,298 New Hi-Wage Jobs 27,298 New Hi-Wage Jobs $642 Million New KBE Activity 1,600+ Firms $642 Million New KBE Activity 1,600+ Firms 4,500+ Families with Healthcare Coverage 4,500+ Families with Healthcare Coverage Lift 10,000 Citizens Out Of Poverty Lift 10,000 Citizens Out Of Poverty $200 Million Information Technology Investment $200 Million Information Technology Investment Global & Nat’l Trends Global growth presents SI with opportunity to accelerate its economic growth from 1.34% to 3.85% per year KBE activity now accounts for 50% plus of GDP growth, 3x’s growth in occupations and pays double the average wage of other jobs By 2010, the U.S. will have a 10M worker shortfall requiring strong workforce development resources 3 of 4 factors required to support KBE activity in rural America are SI strengths 58% of all U.S. and global tourists want authentic active, historic and cultural experiences (50-80 million) Logistics is a $900 billion U.S. industry in a global $3.43 trillion market growing at 10-15% per year 74% global increase in coal consumption, 138% in coal-to-liquid and 66% in bio-fuels by 2030 Global growth presents SI with opportunity to accelerate its economic growth from 1.34% to 3.85% per year KBE activity now accounts for 50% plus of GDP growth, 3x’s growth in occupations and pays double the average wage of other jobs By 2010, the U.S. will have a 10M worker shortfall requiring strong workforce development resources 3 of 4 factors required to support KBE activity in rural America are SI strengths 58% of all U.S. and global tourists want authentic active, historic and cultural experiences (50-80 million) Logistics is a $900 billion U.S. industry in a global $3.43 trillion market growing at 10-15% per year 74% global increase in coal consumption, 138% in coal-to-liquid and 66% in bio-fuels by = = CSI 2012 M/S1 Goals* Note: Regional Assets (Chap 2); Trends (Chap 1); * Milestone #1 Connect SI Goals were announced to the Public 26 Feb 2007 Is SI worth fighting for?

©2008 ViTAL Economy, Inc. — 4 — Potential SI Jobs by Sector (1 of 2) Global growth opens up opportunities to expand SI economy beyond its traditional growth rate 10 million U.S. worker shortage is an opportunity for SI workforce development resources Growth in services exports enable SI to move away from uncompetitive legacy economic activities Global growth opens up opportunities to expand SI economy beyond its traditional growth rate 10 million U.S. worker shortage is an opportunity for SI workforce development resources Growth in services exports enable SI to move away from uncompetitive legacy economic activities ICT investments contribute 33% to U.S. productivity growth…this validates importance of NPCOI SI’s 64% increase in broadband access can better leverage six-fold increase in e-commerce activity 4 of 5** factors in rural KBE growth are SI strengths — need to be leveraged for SI economic growth Livable community assets present in SI are an attraction asset for KBE, Senior Living and Tourism Alternative energy, global warming and “greening” of society is creating innovation opportunities ICT investments contribute 33% to U.S. productivity growth…this validates importance of NPCOI SI’s 64% increase in broadband access can better leverage six-fold increase in e-commerce activity 4 of 5** factors in rural KBE growth are SI strengths — need to be leveraged for SI economic growth Livable community assets present in SI are an attraction asset for KBE, Senior Living and Tourism Alternative energy, global warming and “greening” of society is creating innovation opportunities Global Workforce Opportunities 18,750 New Jobs Global Workforce Opportunities 18,750 New Jobs KBE 8,023 New Jobs KBE 8,023 New Jobs See: RA Chapter 1 **Five Factors are: High Quality Workforce College or Universities Local Amenities Transportation Infrastructure Size Is SI worth fighting for?

©2008 ViTAL Economy, Inc. — 5 — Potential SI Jobs by Sector (2 of 2) Climate of Economic Opportunity = an additional 10,210 new jobs NEW GRAND TOTAL = 50,789 Jobs (vs. 27,298 Jobs Feb ‘07) Climate of Economic Opportunity = an additional 10,210 new jobs NEW GRAND TOTAL = 50,789 Jobs (vs. 27,298 Jobs Feb ‘07) See: RA Chapter 1 Senior Living 3,676 New Jobs Senior Living 3,676 New Jobs Energy & Mining 5,680 New Jobs Energy & Mining 5,680 New Jobs Tourism 4,450 New Jobs Tourism 4,450 New Jobs Log/Trans//Dist 1,675 New Jobs Log/Trans//Dist 1,675 New Jobs 77 million retiring baby boomers present an affluent senior living growth opportunity for SI Preferred tourism growth sectors indicate SI is positioned for accelerated tourism growth SI energy assets and knowledge are in the sweet spot of energy priorities for growth Significant transportation labor shortages are moving transportation and distribution centers from the coast to the center of North America. SI location and logistics assets position it for growth Is SI worth fighting for?

©2008 ViTAL Economy, Inc. — 6 — Leadership: the Key to Success PEOPLE are the most important Connect SI asset who volunteer and commit their time, talent and treasure to achieve SI goals o Selection: Choice of leaders should be based upon active participation in achieving the CSI Strategy — LAC, COI, cluster & action team leadership should include a mix of styles, connections and influence (see RA Chp. slides 29-30) o Training: Volunteers should be rewarded with yearly education and self- improvement programs — provides ROI for participation; enhances leadership effectiveness; and improves strategic outcomes o Support: Leadership is a volunteer effort that requires staff support to achieve desired results — CSI staff needs to proactively engage leaders and fill initiative gaps as identified o Motivation: Volunteer leaders’ efforts are fueled by recognition of their impact and accomplishments — CSI must regularly highlight leadership and community progress toward goals and celebrate short-term wins o Focus: CSI staff assist leaders in consistently reinforcing strategic direction, current status, and immediate tasks at hand — maintaining focus yields better results CSI Leaders, volunteers & staff must function as true catalysts — stimulating the transformation of SI’s economy — Is SI worth fighting for?

©2008 ViTAL Economy, Inc. — 7 — SI Vision 2012 Southern Illinois will: Be the fastest growing economic region in Illinois Be the regional gateway: m From America’s Heartland to the global economy m From the global economy to America’s Heartland Be named a national and regional model for collaborative, regional rural economic transformation Achieve a positive balance between livability & sustainable growth Southern Illinois will: Be the fastest growing economic region in Illinois Be the regional gateway: m From America’s Heartland to the global economy m From the global economy to America’s Heartland Be named a national and regional model for collaborative, regional rural economic transformation Achieve a positive balance between livability & sustainable growth What follows are four Goals to achieve this Vision and transform SI m Each Goal has four Strategies (16 total) m Each Strategy has four Actions (64 total) Is SI worth fighting for?

©2008 ViTAL Economy, Inc. — 8 — SI’s Transformation: Four Measurable Goals GOAL #1: Transform SI Mindset and Behavior – Increase CSI champions and collaborative funding by 300% and build a climate of unlimited economic opportunity through creation of 1,600 KBE firms by 2012 GOAL #2: Transform SI Economic Performance – Increase SI GRP by $3.5 billion/year, its average annual growth rate from 1.34% to 3.85%, and its state and local tax revenues by $200M+ per year by 2012 GOAL #3: Transform the SI Enabling Environment – Create a collaborative regional culture of livable communities with planning and zoning standards; with global best practice broadband penetration; and reduce SI’s #1 ranking in 15 of 18 Illinois Poverty Summit indicators by 50% by 2012 (RA Chp. 1.05) GOAL #4: Transform SI Leadership and Governance Frameworks – Realize “Crossing the Boundaries” vision of Connect SI by expanding the base of collaborative leaders by 500 persons and implementing regional collaborative governance frameworks to successfully fund, resource and manage a dynamic SI economy; accomplished by 2012 Is SI worth fighting for?

©2008 ViTAL Economy, Inc. — 9 — #1: Transform SI Mindset and Behavior GOAL #1: Transform SI Mindset and Behavior – Increase CSI champions and collaborative funding by 300% and build a climate of unlimited economic opportunity by creating 1,600 KBE firms by 2012 m STRATEGY 1A – Develop and implement a regionally-led collaborative funding strategy raising $1.8M+ per year through 2012 and achieve a 4:1 external leverage of regional investment by 2012 (RA Chp. 7.03, slides 28, 29) m STRATEGY 1B – Implement a community engagement strategy that mobilizes 3,000+ Connect SI community champions to support the CSI strategy m STRATEGY 1C – Launch a regional branding and communications strategy that embeds awareness and support of Connect SI across 20% of SI population by 12/31/2009 and 50% by end of 2010 m STRATEGY 1D – Shift the focus of SI Community and Economic Development (CED) from declining legacy industries to high growth Knowledge-Based- Enterprise (KBE) innovation sectors by creating 16,000 KBE jobs by 2012, supported by implementation of an Integrated Finance Framework Is SI worth fighting for?

©2008 ViTAL Economy, Inc. — 10 — #2: Transform SI Economic Performance GOAL #2: Transform SI Economic Performance – Increase SI GRP by $3.5 billion/year, its average annual growth rate from 1.34% to 3.85%, and its state and local tax revenues by $200M+ per year by 2012 m STRATEGY 2A – Create 16,379 new jobs at $43,500 by 2012, and an additional 10,919 new jobs from $36,517-$40,785 per year by 2012 — healthcare benefits are to be included with all new jobs m STRATEGY 2B – Improve 41,461 workers incomes by $5,000/year by 2012 m STRATEGY 2C – Develop and implement an investment attraction strategy to increase SI global export value by $1Billion/year by 2012 (RA Chp. 5.01, 5.05) m STRATEGY 2D – Shift the ratio of private sector vs. public sector income in SI from 46:54 to U.S. ratio of 65:35 by 2012 to increase SI climate of risk taking and diversify income sources of SI economy (RA Chp. 7) Is SI worth fighting for?

©2008 ViTAL Economy, Inc. — 11 — #3: Transform SI Enabling Environment GOAL #3: Transform SI Enabling Environment – Create a collaborative regional culture of livable communities with planning and zoning standards; with global best practice broadband penetration; and reduce SI’s #1 ranking in 15 of 18 Illinois Poverty Summit indicators by 50%, by 2012 (RA Chp 1.05) m STRATEGY 3A – Define SI Livable Community Standards by end of 2009 that leverages the planning and design resources of SIU, UI and Urban Land Institute (RA Chp. 3.04) m STRATEGY 3B – Improve regional health outcomes by reducing cardiovascular disease mortality from 215 to 166 per 100,000 by 2012, a 23% reduction (RA Chp. 6.06) m STRATEGY 3C – Achieve a 54% global best practice broadband penetration rate in SI by 2012 and increase Network Providers revenues $45M/year by responding to industry cluster and regional COI connectivity requirements m STRATEGY 3D – Develop a collaborative education and training strategy across SI that achieves a 32% Associate Degree and 85% High School Diploma or higher to meet 2012 workforce requirements (RA Chp. 5.02) Is SI worth fighting for?

©2008 ViTAL Economy, Inc. — 12 — #4: Transform SI Leadership and Governance Frameworks GOAL #4: Transform SI Leadership and Governance Frameworks – Realize “Crossing Boundaries” vision of Connect SI by expanding the base of collaborative leaders by 500 persons and implementing regional collaborative governance frameworks to successfully fund, resource and manage a dynamic SI economy; accomplished by 2012 m STRATEGY 4A – Create a “Crossing Boundaries Institute” focused on training and developing collaborative leaders to manage/drive a 21 st century regional SI economy — exhibits 3C behaviors: Collaboration, Connectivity and Changed Spending m STRATEGY 4B – Establish a regional CED planning, strategy and data service for local communities as well as a benchmarking portal to measure SI progress in achieving Connect SI goals and improving SI innovation economy readiness relative to global best practice m STRATEGY 4C – Support, maintain and resource four regional COI’s, Healthcare COI, Network Provider COI, 12 industry cluster teams, and action plan implementation teams (RA Chapter 7.04 slides 27, 32) m STRATEGY 4D – Mobilize, connect and align non-profit community development and social service groups to create a collaborative approach to achieve the 2012 Connect SI CED growth goals Is SI worth fighting for?

©2008 ViTAL Economy, Inc. — 13 — Phase 1 Outcomes GIS Asset Maps Broadband Strategy Economic Benchmarks Regional Economic Strategy Healthcare Strategy Regional Economic Framework Five-Year Measurable Goals Implementation & Funding Plan Phase 1 => Phase 2 => Goals 2012 Goals Greater Egypt COI Southeastern COI Southern Five COI Greater Wabash COI Healthcare COI Network Provider COI Connect SI Leadership Board COI Transition to Phase II Cluster GE COI SE COI S5 COI GW SOI NP COI Healthcare COI Youth Engagement Strategy Phase II Structure and Strategy LEADERSHIP BOARD Integrated Finance Strategy Innovation Ecosystem Industry Cluster Analysis and Strategy Crossing Boundaries Institute Industry Clusters: See RA Chapter 7 Slide 27 >$2 Billion New Annual Wages 41,461 Existing Jobs >$5,000/Yr 27,298 New Hi-Wage Jobs $642 Million New KBE Activity 1,600+ Firms Families with Healthcare Coverage Lift 10,000 Citizens Out Of Poverty $200 Million Information Technology Investment Is SI worth Fighting for?

©2008 ViTAL Economy, Inc. — 14 — All new jobs created by Industry Clusters will be targeted to include private payer health benefits for workers and families All new jobs created by Industry Clusters will be targeted to include private payer health benefits for workers and families Phase 2 Industry Cluster Focus to Achieve SI Goals Tourism Bio-Agriculture Knowledge Based Enterprises (KBE) m Healthcare Technology Products & Services m Advanced Manufacturing m Recreational, Marine, Hunting, Technology Products & Services m Visual Creative & Performing Arts and Services m International Incubation and Innovation m Green Technologies m Homeland Security Response and Services m Life Sciences, Plant and Animal Global Workforce Opportunities Energy Mining Technology Transportation, Logistics & Warehousing Senior Living Education & Training (also supports all the other clusters) Is SI worth fighting for?

©2008 ViTAL Economy, Inc. — 15 — Measurable Indicators of Progress Towards 2012 CSI Goals It’s Time to Go Global! 11% 8.4% 2.4% 54% 33% 36% 46% 67% 64% SI Becomes an Innovation Economy % Penetration of Population SI is a Global Broadband Leader 12% 24% 34% 54% Insured population +10% Medicaid -26% Medicare +18% Uninsured -32% Uninsured -32% Healthcare Economics are Transformed! Is SI worth fighting for?

©2008 ViTAL Economy, Inc. — 16 — 2012: What SI Success Looks Like Southern Illinois is the global location where inter-generation active lifestyle families, visitors & KBE workers choose to live work and play — growth abounds SI’s historic liability of remoteness and lack of access becomes an asset; instead of forgotten by Chicago, Springfield and Washington, SI is a land and lifestyle treasured, respected, sought after and envied — there is only one SI in the World SI communities see themselves in a new light; they are respectful of their place; they see themselves as gateways to a land that is "The Garden of The Gods" Tourism venues, town centers,rural lands, business locations and neighborhoods all demonstrate by their look and feel that SI is a very special place to be preserved and enhanced for all time SI is a place of welcome for people of all cultures whether visiting or living here; in the land of "The Garden of the Gods” all are welcome and of value It is a place many want to be, but only the fortunate choose to take advantage of this unique opportunity; SI becomes a place that is worth a premium, rather than one that feels it must offer a discount to be desired Source: ViTAL Economy Alliance Is SI worth fighting for?

©2008 ViTAL Economy, Inc. — 17 — The Call to Action These Goals/Strategies/Actions are ambitious but are, in fact, achievable: Unless you strive for stretch goals — you will never get to “adequate” The key questions each of you must answer: Is SI worth fighting for? If not now, when? Are you willing to take control of your destiny? “ Let me assert my firm belief that the only thing we have to fear is fear itself -- nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance ” — FDR 1933 Speech to turnaround the Country ’ s pessimistic outlook — “ Let me assert my firm belief that the only thing we have to fear is fear itself -- nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance ” — FDR 1933 Speech to turnaround the Country ’ s pessimistic outlook — Is SI worth fighting for?