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Greater Dubuque Development Corporation Annual Meeting Keynote Speaker Remarks Copyrighted July 17, 2017 City of Dubuque Consent Items # 27. ITEM TITLE: Greater Dubuque Development Corporation Annual Meeting Keynote Speaker Remarks SUMMARY: City Manager submitting remarks of the Greater Dubuque Development Corporation Annual Meeting Keynote Speaker, Dr. Thomas Tuttle. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File ATTACHMENTS: Description Type Remarks for Dubuque Annual Meeting Supporting Documentation Greater Dubuque: A Model for American Communities am honored to participate in this event and I am very grateful to all the people here who enabled me to include the Dubuque story in my book. Mayor Buol, Teri, Mike and Nancy and Rick you could not have been more gracious. I have friends who invite me to dinner under the condition that I will stop praising Dubuque. Tonight, I would like to share with you the reasons that I have been singing your praises from Bahrain in the Middle East to Hagerstown-a city in my home state of Maryland and more. Both Bahrain and Hagerstown and many other cities can learn from your example. First let me place my remarks in a wider frame. In his latest book,the NY Times columnist and celebrated author Tom Friedman lucidly and in great detail explains what he calls the Age of Accelerations that provides both opportunity and challenge for our times. This Age of Accelerations is characterized by exponential change in three powerful forces—Environment and Climate Change; Technology and Data Flow; and Globalization. The interaction of these three forces is driving a rate of change that disrupts virtually everything. For me, although I could not verbalize it at the time,the Age of Accelerations began when in 1969 1 saw this photo of earth taken by the Apollo 11 Astronauts. It was reinforced in the early 90s at a White House Conference on the environment.There I began to grasp the challenge of sustainability when a speaker told us that if the developing world raises their standard of by utilizing the same technologies that the more developed societies have used it will require the natural resources of 7 planet earths. Unfortunately, we have only one. Countries and cities that successfully adapt to the three forces driving the Age of Accelerations will benefit through increased productivity, innovation,job creation,talent attraction and wealth.Those that do not will fall further and further behind. If successful adaptation to these forces does not happen across the entire globe,the resulting inequalities between nations will create risks for both the richer and poorer nations and will accelerate global instability.Already the inequalities between nations account for much of the tension and conflict that we see in the Middle East,Africa and beyond. The rising inequality within nations between those who benefit from the Age of Accelerations and those who do not will also create within-country instability.This helps explain the Brexit vote and the Donald Trump phenomenon in the US. When there is internal stability even when surrounded by high external instability,the nation or local community has a chance to effectively respond and adapt to external change. We should not confuse the idea of stability with "static." In the Age of Accelerations,the concept of stability means "dynamic stability." Dynamic stability results when a living system continually interacts with its environment and makes changes as necessary to maintain or 1 improve system performance. As the former CEO of GE Jack Welch once said—for any organization that is not changing as fast as its environment,the end is in sight. For communities, we can say the same thing. Friedman points out that the ability to thrive in the Age of Accelerations is significantly enhanced if we live in a healthy community. Healthy communities support people as they work to meet their basic needs and once those needs are met supports their ability to learn, grow and develop. Such communities provide safe,trusting environment that challenges and enables individuals and organizations to experiment, fail, learn and experiment again. As he was driving to work and listening to a country song on his Sirius XM radio Friedman discovered the idea that captured the theme for his book. In Brandi Carlile's song "The Eye" she sings a chorus that says: "I wrapped your love around me like a chain But I never was afraid that it would die You can dance in a hurricane But only if you stand in the eye" Healthy communities wrap their love around all of their citizens and enable them to dance in the eye of a hurricane. That brings me to Dubuque. I believe that you have shown the ability to create the dynamic stability that has enabled you to experience almost three decades of sustained success. That is why I have chosen to identify Dubuque as a model for America. What makes Dubuque a role model for America?The first reason is that you have produced measurable economic development results over an extended period of time. Since the Greater Dubuque Development Corporation was established you have increased the number of jobs,the average wage, construction spending, and the population has grown. For me what is even more impressive than these results are that Dubuque's leaders have developed a system for making these results repetitive. Dr. W.Edwards Deming is best known as the quality guru who helped the Japanese create their quality miracle following World War II. He was relatively unknown in the U.S. until Lloyd Dobbins in an NBC White Paper called 'if Japan Can, Why Can't We?' introduced him to American managers. One of Deming's key lessons was that the goal of management is to create a "system of profound knowledge"that can make business results repetitive. To illustrate this point Deming relates the story of Chanticleer the rooster. The barnyard rooster put forth all his energy to flap his wings and crow every morning. Every morning the sun came up. Chanticleer had a theory that his crowing made the sun come up. The connection was very clear. Then one day, Chanticleer was not feeling so well and forgot to 2 get up and crow. He looked out and saw that the sun came up anyway. He was totally shocked and confused. Fortunately, Chanticleer did not cling to his failed theory. He used the "facts" to alter his theory. The importance of this story is that in order to learn, Chanticleer had to first have a theory that could be tested. Fortunately, the visionary business leaders in Dubuque who created the organizational design for the Greater Dubuque Development Corporation realized that the community must create a "big-tent" organization that embraced government, education, labor and not-for-profit organizations.They realized that the problems faced by the city were too big for any one organization to tackle from a single sector perspective. As Dave Lyons described it to me the leaders of the community formed a "close communication process that continues to today. It operates like an inter-locking Board of Directors in a holding company. There are separate operating units but the boards are interlocked. Everyone knows what is going on and they can act very quickly." As I have observed the work of the Greater Dubuque Development Corporation, I have found convincing evidence that you have a theory of how to create jobs, how to address workforce needs, how to support the startup of new businesses, how to spur innovation, and how to succeed at business attraction. Your approach is based on clear goals, disciplined action, data, evaluation, communication and building partnerships. With respect to economic development,the GDDC leads a community-wide "system"that partners with all the organizations represented on its board and with others. Rather than allow the breadth of this board to pull the organization into too many directions,the organization maintains a laser focus on its mission.That stems from its leadership and is reflected in each of the five focus areas of the organization. When Dan McDonald described to me their Info-Action program -where Dan and his team conduct 345 information gathering sessions a year with employers -1 thought this was a brilliant description of a process, but it can't really be this good. So, I asked several business leaders if the problems they surface to Dan and his team were listened to and acted on. The message I heard from the business leaders was a resounding yes. However,this process could not work without the strong public-private partnership between Dan, Rick, Mike Van Milligen and the city team who meet weekly to review the data and take action based on the data obtained from the info-action process. When data is used to drive actions this is how GDDC and the city build trust with the business community and make the results repeatable. This data also informs the GDDC strategic plan and the city budget process. You may hear Dan, Rick and Mike crow a bit— but they really do make the sun come up when it comes to assisting local businesses to create new jobs. I would make the same claim for their Workforce programs, Startup Dubuque, and Sustainable Innovations. 3 This system of profound knowledge owes its success also to a visionary mayor and city council who have developed, with the help of engaged citizens, a compelling collective vision for the city. This has been further aided by the city manager who upon his arrival on the scene led the development of a comprehensive plan for the city that is a truly functional plan aligned with the city's vision. Importantly,that plan and succeeding plans such as the impressive Imagine Dubuque initiative under development have been skillfully executed over the years by the Manager and his team. Other key pieces of this system include the Community Foundation that in addition to its core mission, serves as an internal R&D organization to develop and test new methodologies and approaches for fulfilling the vision of the city. The mayor's emphasis on strategic partnerships led to the creation of unique city position filled by a unique individual who has shown incredible success in developing external partnerships to bring visibility and resources to the city working with the ECIA and other organizations. The name of the game in economic development today is recruitment, development and retention of talent.Another vital element of the community system is the engagement and alignment of the K-12 and higher education community. The work of your community college was recognized nationally this year by the International Economic Development Council along with the leadership of your Mayor. Healthy communities are characterized by safety and security, local leadership that transcends self-interest and that is focused on strengthening the community as a whole. Citizen commitment to the community comes from power sharing through citizen engagement, shared community values, and the existence of widely understood goals, plans and competent implementation of the plans with accountability to all citizens. In addition, healthy communities are characterized by partnerships across sectors that enable "collective action"to address challenges that no individual community group can address on its own. Partnerships serve as a vehicle to align community efforts to attain goals, acquire and focus additional resources. My research on job creation clearly points out that these are the essential conditions for productivity improvement, and sustained economic growth. On the other hand, communities that are characterized by divisive politics,fear, suspicion, and lack of respect for differences will have great difficulty with sustained job creation and sustained economic growth. The GDDC's prospectus for the next capital campaign provides the challenge—Together we succeeded.....but we must not anchor here. As you move forward to continue your success in the Age of Accelerations I see five major challenges. 4 1. You must continue to refine and apply the "system of profound knowledge"that has delivered almost three decades of sustained success and that has created the healthy community that is Dubuque. 2. You must maintain a political environment that will support and nurture your ability to drive positive change and invest in the future. What you have created is both powerful and fragile. You must continue to identify and elect candidates in local elections that will support efforts to learn your way to the future not try to turn back the clock or deny the forces in the Age of Accelerations. 3. You must groom a new and diverse group of community leaders who can transcend self-interest, embrace the values of inclusion, innovation, empathy and performance excellence.As a developmental strategy,you might consider creating a Junior Board of Directors for the GDDC that engages promising next generation leaders who can learn through tackling real community challenges. 4. Talent,Talent,Talent. Over the next 10 years you are projecting a gap between the number of jobs available and the number of people with the skills to fill those jobs. You cannot solve the problem by increasing the birth rate.There are only two solutions. One is to count on automation to reduce the number of people required to do the jobs.The second is to recruit more people into the community either domestically or internationally. Can you develop strategies to convince more of the graduates from local colleges to remain in Dubuque? 5. The people in this room have a history of great generosity in supporting this community.This must continue. Do not fall victim to the budget cutting mentality that views government as the enemy. You cannot cut your way to excellence! You must continue to invest. Driving change and community engagement requires both hard and soft skills—don't neglect roles such as backbone organizations, community engagement coordinators,facilitators, etc. Thank you, Greater Dubuque,for sharing your secret sauce for job creation and community building with me. Living next door to Washington, D.C. it is sometimes hard to remain optimistic about America's future. However, because of communities like you I remain optimistic. The winds of the hurricane will continue to blow—but I know you will show Iowa and America how to find the eye in the storm and keep on dancing!! Thank you. 5 6