Tourism and Economic Sustainability

I serve on the County Redevelopment Commission (RDC).  The following is a copy of a Guest Column published by the Brown County Democrat on  Sept  20, 2017. The purpose of the letter was to reinforce the need for a collaborative approach when considering development projects that can have long-term impacts on the community.

Economic impact studies of tourism in Indiana and Brown County reinforce the benefits of sustaining a tourism industry. However, tourism, by itself, has not and cannot provide a sustainable economic future for Brown County.  Further, too much tourism can have detrimental effects on the attributes that have attracted pioneers, artists, residents, and visitors to Brown County since 1836.

The Brown County Community Readiness Initiatives, a survey and economic assessment conducted by the Ball State Economic and Research Institute concluded that Brown County’s greatest potential for economic growth is not tourism but as a bedroom community. This option is defined as attracting individuals and families that live in Brown County but can work at home or commute to the higher paying jobs outside the county.

This is not a new phenomenon.  Past economic studies have identified that the majority of citizens in Brown County commute outside the county for employment.  This strategy is among the best strategies for having positive impacts on all five of our Community Vitality Indicators (CVIs) that include:  assessed property value, per capita income, population, school enrollment and educational attainment rates.

The study also reinforced the importance of quality of place that includes good schools and amenities where people want to live.  Identifying and maintaining these attributes must be identified in the county comprehensive plan.

A May 2017 assessment by graduate students of Indiana University School of Public and Environmental Affairs (SPEA) reinforced the conclusions from the Ball State Study to include the importance of expanding the tax base to support the diversification of the business industries residing in the county.

The following chart includes data obtained from the U.S. Government Bureau of Labor Statistics.  The tourism industry is represented in the supersector identified as Leisure and Hospitality.  Comparing 2005 data with 2016 data identifies that the number of the establishments have stayed the same, jobs have decreased and wages are the lowest of the categories. Perhaps most important, the number of establishment in most categories have decreased with increases in the number of jobs in just a few areas.

U.S. Government Bureau of Labor Statistics
Brown County

In the 2014 Strategic Plan for Economic and Community Prosperity in SouthWest Central Indiana,  the Hospitality and Tourism Sector was identified as having 181 establishments in the region employing 3,506 employees with the lowest average wage ($24,477) of all the sectors.

To address the challenges within our region and with funding provided by Lilly Endowment, the Regional Opportunity Initiative (ROI) was established to: “Advance economic and community prosperity in an 11-county area that encompasses Brown, Crawford, Daviess, Dubois, Greene, Lawrence, Martin, Monroe, Orange, Owen and Washington counties.”

To prepare our students for successful careers, the Brown County Schools recently competed for and was awarded a grant from ROI to prepare our students to be qualified for the higher paying jobs.  This can lead to a business climate and a workforce that will help attract new businesses to Brown County.

A Way Ahead

The Brown County Redevelopment (RDC) commission was tasked to identify county wide strategies that would result in improvement in the CVIs.  Strategies will also need to consider courses of action if the tax base continues to decline.

The key priorities for the county include a focus on options that would provide the funding to support the capital improvements required to improve and expand the core infrastructure within the county. This infrastructure includes roads, water, sewer, broadband, police, fire and emergency services which would support the expansion of residential development and contribute to positive trends in the county CVIs.

The critical priority for the county includes broadband. Access to the internet is now considered a vital utility that is critical for leveraging the educational opportunities for our students as well as attracting businesses and new residents.

In support of this aim, the RDC has provided a proposal to the Area Plan Commission (APC) to work collaboratively in developing a comprehensive plan and economic strategy that will produce results where we will all benefit or at least, will not be any worse off.

Commissioners and Council and all their appointed commission and board members need to unite towards a common vision, plan, and strategy that has the support of the citizenry. The trend nationally has been one of polarization by wealth and political affiliation.  The challenges and opportunities facing Brown Countians cannot be successfully addressed with a divided community. The citizens of Brown County should expect the collaboration and action that will lead to a sustainable economic future.

Tim Clark
Brown County Redevelopment Commission

More info:

Survey Information:  2016 Community Readiness Initiative (CRI), Nashville, Brown County Ball State University

More Info ROI GrantGetting ready for the real world: New administrator’s job focuses on teaching workplace skills early

 

 

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Failing to Plan: Planning to Fail

I serve on the County Redevelopment Commission (RDC).  The following is a copy of a Letter to the Editor of the Brown County Democrat. The purpose of the letter was to reinforce the need for a collaborative approach when considering development projects that can have long-term impacts on the community.

Maple Leaf Proposal: Let’s Not Fail to Plan
By Tim Clark

At the June 20, 2017, presentation to a crowd of approximately 100 people on the proposed Maple Leaf Performing Arts Center (MLPAC) at the Brown County Playhouse, Commissioner Diana Biddle stated:

“We have planned ourselves to death: Strategic planning, strategic planning, strategic planning.”   “It is time for strategic doing,”  

Although this statement received a round of applause, and may accurately reflect the perception held by many in the community, there can be more to the story.

The Purdue University, Center for Regional Development has described “strategic doing” as including “engaging the community in building a prosperous, sustainable future for ourselves and future generations.” This future must be identified in a comprehensive plan and strategy. The last revision to the county comprehensive plans was in 2011, and the county does not have a published strategic plan.

Regarding the proposed MLPAC, the community at large has not had the opportunity at official public meetings to provide input on the best investment options for the revenue collected from the inn keepers tax nor were they involved in providing feedback on the size, scope, and location of a venue.

Further, citizens have not been provided with sufficient details on the nature of the $10.2 million dollar debt including information about the right, if any, to remonstrate. Although principal and interest on the debt can be paid with revenues from the inn keepers tax, taxpayers are likely at risk for the total debt.

Despite this lack of community engagement, advocates for the proposed MLPAC are on the Area Plan Commission agenda on August 22 and intend to request a zoning change for the Snyder Farm site.

An initial outline of the “proposed” MLPAC review and approval process was developed by the county attorneys – Barnes and Thornburg.  The Brown County Redevelopment Commission (RDC) initiated a review on the proposed MLPAC in the context of a county wide perspective. This review included an outline of an initial action plan that involves collaboration among all affected government offices to ensure the due diligence expected from taxpayers.

At the July 13, 2017, RDC meeting, Commissioner Biddle stated that the initial process that was outlined by Barnes and Thornburg was changed to the extent that project reviews and approval no longer required the involvement of the RDC.   An updated outline and timeline has yet to be shared with the public.

The RDC is pursuing federal grants to fund updates to the county comprehensive plan and to fund development of an economic development strategic plan.  These plans along with a five-year budgeting capability would include the key elements of a county strategic plan –likely the first ever such plan in the history of Brown County government. Because of the long lead time involved with government grants, self-funding the development of these plans may be an immediate and needed course of action.

To support the aim of “engaging the community in building a prosperous, sustainable future for ourselves and future generations,” either the RDC or another objective third party should be asked to take the lead in facilitating the review and approval process. This will help ensure community support for the proposed MLPAC and its alignment with the existing or updated county comprehensive plan.

For those where planning may be an abhorrent concept, Benjamin Franklin is credited with the axiom that: “If you fail to plan, you are planning to fail!” Let’s not plan to fail.

Disclaimer:  The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any commission or board.

How to make a great country, better

The U.S. system of government is designed to be continually improved with the aim of “We the People” making progress toward “a more perfect Union.” The opportunity is to consider applying a proven method for reducing imperfection that will produce results where we all gain or, at least, are not any worse off.

“We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.”Preamble to the U.S. Constitution

A problem with the word “perfect” is that the term can be used in a context where perfection can be perceived as being obtainable. The U.S. Founding Fathers were careful to prevent citizens from drawing this conclusion by using the phrase “more perfect.” Legendary football coach Vince Lombardi reinforced the “more perfect” theme in his statement: “Perfection is not attainable, but if we chase perfection we can catch excellence.”

A 2016 Gallup survey indicated that 89% of Americans believe in God or a universal spirit. Many of the Founding Fathers were influenced by the biblical philosophy that only God is perfect and that man is imperfect but is expected to improve. Consequently, it might be concluded that life is all about reducing imperfection.

W. Edwards Deming, who is the founding father of many effective quality improvement methods, concluded that if he was to reduce his message to just a few words, it all had to do with reducing variation. Reducing variation is synonymous with reducing imperfection. A description of variation in a context that supports the interrelationship between variation, perfection, excellence, and quality is as follows:

American Society for Quality: What Is the Law of Variation?

“In simple yet profound terms, variation represents the difference between an ideal and an actual situation.

An ideal represents a standard of perfection—the highest standard of excellence—that is uniquely defined by stakeholders, including direct customers, internal customers, suppliers, society, and shareholders. Excellence is synonymous with quality, and excellent quality results from doing the right things, in the right way.

The fact that we can strive for an ideal but never achieve it means that stakeholders always experience some variation from the perfect situations they envision. This, however, also makes improvement and progress possible. Reducing the variation stakeholders experience is the key to quality and continuous improvement.”

Ideals are derived from basic human needs. America’s ideals were identified in the Declaration of Independence:

“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.”

Deming concluded that, without knowledge of common and special cause variation, 95% of actions taken to improve a situation results in no improvement and can make things worse. Knowing the difference between common and special cause variation results in a higher success rate because it leads to improving systems. Further, it leads to knowledge through assessments to determine what worked, what did not work, and what might be done differently next time to successfully reduce variation. (Assess your knowledge of the variation paradigm.)

By implementing the methods proven to be effective in reducing variation, the United States has the potential to surpass and then sustain the economic boom and prosperity it experienced after WWII (1947-1977) when the country had a global competitive advantage. But as Deming often remarked: “It is not necessary to change. Survival is not mandatory.”

Despite the conclusion drawn by major media outlets such as FORTUNE magazine and U.S. News and World Report that Deming’s work represents one of the most fundamental improvements in business if not human history, Deming’s work is still virtually undiscovered.

When Deming described the scope of the needed transformation, he used the term metanoia, which he defined as “penitence, repentance, reorientation of one’s way of life, spiritual conversion.”Norman Todd elaborated on this premise in his paper Metanoia and Transformation II.

A Way Ahead

Perhaps if more leaders recognize the connection between imperfection and variation, they might become more aware of the connection between science and spirituality. This, in turn, might lead to the broader application of Deming’s teachings.

Leading this change will require that a critical mass of leaders embrace the new paradigm for Quality Leadership that will support a Vision for Transformation.

A Critical Flaw in the U.S. System of Government

Note: This article was re-posted on Linkedin (with a few minor word changes) under the title: “How to make a great country, better.”   

The U.S. system of government is designed to be continually improved with the aim of “We the People” making progress toward “a more perfect Union.” The flaw is that we lack a shared method for reducing imperfection that will produce results where we all gain or, at least, are not any worse off.

“We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.”Preamble to the U.S. Constitution

A problem with the word “perfect” is that the term can be used in a context where perfection can be perceived as being obtainable. The U.S. Founding Fathers were careful to prevent citizens from drawing this conclusion by using the phrase “more perfect.” Legendary football coach Vince Lombardi reinforced the “more perfect” theme in his statement: “Perfection is not attainable, but if we chase perfection we can catch excellence.”

A 2016 Gallup survey indicated that 89% of Americans believe in God or a universal spirit. Many of the Founding Fathers were influenced by the biblical philosophy that only God is perfect and that man is imperfect but is expected to improve. Consequently, it might be concluded that life is all about reducing imperfection.

Edwards Deming, who is the founding father of many effective quality improvement methods, concluded that if he was to reduce his message to just a few words, it all had to do with reducing variation. Reducing variation is synonymous with reducing imperfection. A description of variation in a context that supports the interrelationship between variation, perfection, excellence, and quality is as follows:

American Society for Quality: What Is the Law of Variation?

“In simple yet profound terms, variation represents the difference between an ideal and an actual situation.

An ideal represents a standard of perfection—the highest standard of excellence—that is uniquely defined by stakeholders, including direct customers, internal customers, suppliers, society, and shareholders. Excellence is synonymous with quality, and excellent quality results from doing the right things, in the right way.

The fact that we can strive for an ideal but never achieve it means that stakeholders always experience some variation from the perfect situations they envision. This, however, also makes improvement and progress possible. Reducing the variation stakeholders experience is the key to quality and continuous improvement.”

Ideals are derived from basic human needs. America’s ideals were identified in the Declaration of Independence:

“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.”

Deming concluded that, without knowledge of common and special cause variation, 95% of actions taken to improve a situation results in no improvement and can make things worse. Knowing the difference between common and special cause variation results in a higher success rate because it leads to improving systems. Further, it leads to knowledge through assessments to determine what worked, what did not work, and what might be done differently next time to successfully reduce variation. (Assess your knowledge of the variation paradigm.)

By implementing the methods proven to be effective in reducing variation, the United States has the potential to surpass and then sustain the economic boom and prosperity it experienced after WWII (1947-1977) when the country had a global competitive advantage. But as Deming often remarked: “It is not necessary to change. Survival is not mandatory.”

Despite the conclusion drawn by major media outlets such as FORTUNE magazine and U.S. News and World Report that Deming’s work represents one of the most fundamental improvements in business if not human history, Deming’s work is still virtually undiscovered.

When Deming described the scope of the needed transformation, he used the term metanoia, which he defined as “penitence, repentance, reorientation of one’s way of life, spiritual conversion.”Norman Todd elaborated on this premise in his paper Metanoia and Transformation II.

A Way Ahead

Perhaps if more leaders recognize the connection between imperfection and variation, they might become more aware of the connection between science and spirituality. This, in turn, might lead to the broader application of Deming’s teachings.

Leading this change will require that a critical mass of leaders embrace the new paradigm for Quality Leadership that will support a Vision for Transformation.

Business Culture and Financial Success

 

Top Bridgewater exec explains how its intense, unique culture helped the world’s largest hedge fund make $50 billion

Interesting insight on the correlation between culture and success.  Ray Dalio provides further insight in his e-book titled Principles by Ray Dalio,

W. Edwards Deming estimated that only 5% of management actions applying traditional methods resulted in improvement. Appears that Bridgewater has a higher success/failure ratio.

New Administration: Real Improvement This Time?

Throughout my federal career, I had the opportunity to work with and support many presidentially inspired “change initiatives,” with the expectation that change would result in what citizens would conclude is an improvement.

The past initiatives include zero-based budgeting, quality circles, total quality management, Federal Managers Financial Integrity Act (FMFIA), Baldrige Criteria for Performance Excellence, Corporate Information Management, Government Performance and Results Act (GPRA), business process reengineering, reinventing government, Six Sigma, and Lean.

Many of these programs have faded away. The initiatives supported by law (such as GPRA and FMFIA) are still on the books, but they certainly have not achieved their aims. Only the Baldrige program has successfully stayed the course since its inception in 1987.

I’m guardedly optimistic that government reform and improvement under the Trump Administration may have more success in bringing about and sustaining needed improvement.

Newt Gingrich and the Trump Administration

In the 2016 U.S. presidential election, voters voiced their demand for change. Veteran pollster and political strategist Patrick Caddell noted that this race represents another American revolution.

Trump supporters demand revolutionary change. Trump opponents are awaiting evidence that the new administration can make changes in one area without making things worse in others.

Success in achieving real improvement in a political climate that has been described as divisive and polarizing requires new approaches. Newt Gingrich, former Speaker of the U.S. House and advisor to President-elect Donald Trump, might be able to provide them.

When Gingrich was asked about a possible new role in the Trump administration, he remarked that he saw himself as more of a waste, fraud and abuse czar. In The Hill, Gingrich commented:

“I said I want to be the senior planner for the entire federal government, and I want a letter from you that says Newt Gingrich is authorized to go to any program in any department, examine it and report directly to the president.” 

In a follow-up question on the involvement of Gingrich, President-elect Trump stated that “Gingrich is going to be involved in our government.” However, The Washington Post reported that Gingrich intends to focus on “strategic planning” rather than run a federal department. Gingrich remarked:

I want to be free to network across the whole system and look at what we have to do to succeed.”

During his run for president in 2012, Gingrich signed a pledge to adopt Lean Six Sigma in government if elected. By signing the pledge, he promised to:

“eliminate spending deficits and start paying down the national debt by 2017 by deploying Lean Six Sigma waste reduction methods to detect and eliminate 25 percent of spending per year across the federal government.”

As I mentioned in a previous article at FedSmith.com, “Individual and System Performance – Pass or Fail?”, Lean Six Sigma methods and tools can improve efficiency. However, they are not sufficient to bring about the federal-level changes that are needed to positively impact the entire nation. A new quality paradigm is needed.

The New Quality Paradigm

From 1991-1993, Gingrich was a student of the world-renowned quality expert W. Edwards Deming. Deming’s contributions were recognized by U.S. News and World Report as one of the nine turning points in world history and by FORTUNE Magazine as among the greatest contributions in business history. Dr. Deming was also nominated for a Nobel Prize in Economics.

Gingrich met with Deming for about 60 hours over a three-year period to learn how Deming’s principles could be applied to support a quality transformation in America. Gingrich integrated what he learned from Deming in the sixth class (“Pillar Five, Quality as Defined by Deming”) of a 10-session college course titled “Renewing American Civilization.”

Excerpts from that college course have been compiled into the book Readings in Renewing American Civilization (New York: McGraw-Hill, 1993). On page 107, Gingrich defines “The New Quality Paradigm” as follows:

“What Deming offers is the beginning of a new paradigm and a framework for management within it.

His aim is to improve the quality of life and economic situation of all. Some may quibble with the aim, but there are no viable alternatives. Because of interdependencies, everyone will eventually lose unless all can win.

Furthermore, ensuring that everyone wins is not a matter of taking from the rich to give to the poor, i.e., redistributing the outcomes of the process. Rather, it is of working on today’s process so that everyone can get better results tomorrow.

The job is to improve the ability of each and every individual and organization to create value for themselves and for the society that nurtures them.”

New Standard for Quality Leadership

Successful application of “The New Quality Paradigm” requires the application of a new standard for quality leadership derived from the contributions of Walter A. Shewhart and W. Edwards Deming.

Deming concluded that working to achieve optimal levels of performance is all about reducing variation from the ideal. Deming also reinforced that the failure to understand variation results in situations where the majority of not all in some cases, of changes, result in no improvement. This observation was certainly validated by my experiences with change within the government.

During the final years of my career (2011-2014), I wrote a series of articles in FedSmith.com on the need for change and how better methods could be applied to improve the efficiencies and effectiveness of the political system and the administration of its policies, laws, and regulations.

A Way Ahead

The U.S. political system was designed to be continually improved through changes that result in “a more perfect union.” As Gingrich so eloquently expressed, a new paradigm is needed to achieve the types of results where everyone gains or is, at least, not any worse off. This requires the application of a new standard of quality leadership. Leading this transformation in a political climate that is divisive and polarizing has to be considered one of the ultimate challenges—but it is a challenge that the American people will expect to be met.

The mid-term elections in 2018 will provide citizens with the opportunity to provide feedback on the direction and to determine if they are any better off in 2018 than they were in 2016.