Just when you feel like you've got things figured out, everything changes.  

We believe strongly that the rules of economic development have changed dramatically over the past five years.  In the past, it was about creating jobs.  Generating tax base.  Business incentives.  Cheap labor.  Cheap land.  Access to natural resources.  Actually, pretty simple stuff. Today, economic development is far more complex.

What Has Changed?
Two trends that have shaken the foundation of the traditional economic development world: 1) changes in the workforce and 2) the technology revolution.

Demographic Changes.  Despite recent increases in the number of unemployed, demographics clearly show that our region will have a substantial labor shortage in the next decade.  Bottom line, there just aren't enough people.  Minnesota created more jobs in the recent past than we did Minnesotans (births)!  We can keep all our kids home, and put all our unemployed to work, and we still will not have solved the labor shortage issue.  Listening to our companies also gives you a clear sense of the change.  Nearly 70 percent of northwest Minnesota companies plan to grow sales in the next five years, and plan to do it with the same or fewer employees. 

Technology.  Technological advances over the past decade have changed everything -- including economic development.  What has changed?  Two key things:

• First, technology has changed businesses' locational decisions.  In the past, companies were focused on four-lane highways, access to natural resources, and in a large market area.  In many cases, companies simply couldn't locate in rural areas.  Now, technology has opened doors for rural communities.  Location decisions are now being focused on workforce, technology, and quality of life.  This change is a tremendous opportunity for us.
• Second, technology has changed who our competition is.  No longer are we competing with our neighbors (except during high school football games).  Now our competitors are communities world-wide, and those who were our competition may now need to be our partner.

The New Model for Economic Development

At the HRDC, we have developed a new model for economic development that guides our efforts throughout the region.  The following pyramid gives you a sense of that model. 

On the top of the pyramid we have very traditional economic development activities….incentives, infrastructure, workforce training, etc.  It's important to note that we are not suggesting traditional economic development activities aren't important.  Quite the contrary.  A community needs to become great at providing traditional economic development services.  But traditional economic development activities are not enough to build a successful region.

The HRDC has been focusing its economic development efforts on what we are calling "positioning activities" which are showing in the bottom of the pyramid.  We need to become the best at:

• Talent.  For most businesses, it's about the resources not natural resources.  We have to figure out, in this Region, how to raise the education and skill level of our workforce.  In Tupelo, Mississippi, the poster child for successful community economic development, they started by declaring "education = jobs."
• Technology.  Technology has created huge opportunities for rural areas -- that is if they have access to it.  Communities without access to advanced telecommunication services have a very long row to hoe.
• Quality of Place.  People can chose to live virtually anywhere they want.  Why here?  Why the Headwaters Region?
• Innovation.  Creating a culture that supports and nurtures innovation and entrepreneurship is critical.

Be the best at these -- Knowledge and Skills, Technology, Quality of Place, and Innovation -- and you will set yourself apart.

The final element to effective community economic development is what we are calling "Leadership Alignment”. From our experience, finding communities with strong leadership alignment is very rare.  It's hard work, but it is the key to sustained community success.

What is leadership alignment?  It's ensuring that your community's economic development efforts are based on a foundation of clear community vision and strong, committed leadership.

• Community Vision.  Too many communities have no idea who they want to be when they grow up.  They have what we like to call a "fuzzy identity."  Ask ten people what their community aspires to be, and you will likely get ten different answers.  Successful communities in the future will need a laser-like focus on who they want to be, and how they will get there.
• Leadership.  We don't mean just any leaders, we need "stewards."  Stewards are:

“Special leaders committed to the long term well being of their communities. They cross boundaries, take an integrated approach, and build coalitions for action.  They have 360 degree vision, recognizing the interdependencies between the economy, the environment and social equity.  Stewards operate at the center of tough issues, not on the edges.  They are risk takers.  They are passionate and energetic.  They are people of vision."

The Challenge . . . .

Being great at traditional economic development activities will get you in the game; excelling in knowledge and skills, innovation, technology and quality of place will set you apart; and having laser-like focus, leadership alignment and committed stewards will put you over the top. 

That’s what the HRDC is striving for in our region.  The annual report will help you see some of the key “positioning” work we are doing throughout the region.

The Center for Community Stewardship continues to expand as more communities decide they already own the keys to success - they just need to unlock the doors and walk through them together to arrive at their own destinies.

Advantage Alexandria! reviewed progress on an initial 13 goals at a mini-retreat in May, and is considering fine tuning and adding more to the list. Up for discussion are adding affordable housing, community beautification, a Runestone Events Center, decreasing industrial land costs for business attraction and growth, ethnic/economic diversity, regional airport/road systems and youth development. For more go to www.alexareastewards.com.

Appleton stewards have come together to form Energize Appleton. This group is still finalizing community goals, but based on a community survey, some initial goals are to become a communication technology hub for western Minnesota and a family recreation destination for the state. Appleton also will embrace small town values with public safety, open space and customer service and will lead the way for western Minnesota in healthy lifestyle opportunities. See www.appletonmn.com.

Bemidji Leads! now Bemidji Leads! 2.0 provided the model when it was established three years ago. Last year, Bemidji Leads! won the National Excellence Award from the U.S. Chamber of Commerce and Alliance for Regional Stewardship and also the Innovation Award from the National Association of Development Organizations. Bemidji Leads! 2.0 is the centralizing force on five key initiatives: growing and attracting talent, creating prosperity, promoting wellness, building a livable community and encouraging civic engagement. For more, go to www.bemidjileads.com.

Forward Fergus Falls’ number one goal is to create and support 100 new jobs each year for the next five years. More broadly, this stewards group hopes to create a team and a sense of common unity. For more, go to www.forwardfergusfalls.org.

The Center for Community Stewardship is fostering a new stewards group in Marshall. Stay tuned!

Progress Park Rapids, along with Bemidji Leads!, is one of the “legacy” stewardship efforts in the Headwaters region. Recently, stewards have focused on an educational excellence initiative through school/community collaboration and creating local access to post-secondary education opportunities. Learn more at www.progressparkrapids.com.

Sponsored by the Stevens County Board of Commissioners, Stevens FORWARD is working to create a brighter future for all residents of the county and communities of Alberta, Chokio, Donnelly, Hancock and Morris. As part of the stewards’ commitment, a 2010 goal is adoption of a Statement of Interdependence to guide entities toward greater efficiencies among public institutions and services. See more at www.stevensforward.org.

TRForward community stewards has identified a collective vision for the Thief River Falls area. These stewards have set goals and timelines for work in three primary areas: livable community, economic opportunity and social inclusion/working together. See www.trforward.com.

Progress Park Rapids

This wonderful group of local leaders meet at 7 a.m. one Monday a month and 20 people or better show up at every meeting – this group must think they are doing something important!  And, in fact, they are.

Over a year ago this group of community stewards held a retreat to develop a set of community goals we call a community agenda. These priorities are meant to drive change in areas key to the community’s success. These 2009-2010 goals are:

• Increase local student achievement levels through school/community collaboration
• Create local access to post-secondary education opportunity
• Implement a major arts/culture initiative that makes Park Rapids the “arts capital” of rural Minnesota
• Develop a major community center
• Seek to become the best wired community in Minnesota
• Implement a downtown revitalization initiative
• Implement a parks plan.

Terrific work has been underway with several initiatives over the last year:

• Local leaders are working together to create local access to post-secondary education with Minnesota State College, Detroit Lakes. Pilot classes are expected to be offered late this summer.
• A group of school and community leaders are finding ways to collectively improve 4 year on-time high school graduation rates. A pilot project should be operational in the next several months.
• Three years ago the community started creating a vision for downtown Park Rapids once the city proceeded with replacing aging infrastructure. Subsequently, detailed plans were developed, and construction will start August, 2010.

In fall 2009 a marketing and promotions committee also began developing ideas to minimize the impact on business when the work starts. Volunteers began fundraising to help with an awareness campaign and members of the Downtown Business Association pulled together on new promotions to generate interest and foot traffic before and during construction. The city has worked closely with both groups to minimize the impact on business.

When the project ends, the community looks forward to a renewed and vibrant downtown.

Progress also has been made on developing a private-owned civic center in a portion of the former armory building, creating more arts events and activities, and implementing plans for city parks.

“Progress Park Rapids is a sustainable leadership team that works with community groups for the greater good,” said Mayor Nancy Carroll. “Working together is the new model for economic growth, community health and wellness.  We are working on goals that will benefit the Park Rapids area well into the future.”

The Park Rapids stewards truly believe the community’s best days are ahead. See more at www.progressparkrapids.com.

“This wonderful group of local leaders meet at 7 a.m. one Monday a month and 20 people or better show up at every meeting – this group must think they are doing something important!  And, in fact, they are.”

“Progress Park Rapids is a sustainable leadership team that works with community groups for the greater good,” said Mayor Nancy Carroll. “Working together is the new model for economic growth, community health and wellness.  We are working on goals that will benefit the Park Rapids area well into the future.”

Nancy Caroll,
Park Rapids Mayor

Shared Vision has achieved one enviable goal - visibility.

In less than a year, 108 businesses and agencies in the Bemidji community have signs in their stores, words on their doors and other displays of Ojibwe words and their English meanings. The campaign delivers a subtle message that the community cares.

Michael Meuers, a member of the cultural understanding subgroup of Shared Vision and a public relations person for the Red Lake Band of Chippewa, came up with the idea of Ojibwe/English signage in the community. “Some of the ideas the group was coming up with seemed rather daunting to me,” Michael said. “I was trying to think of something simple, but meaningful, and able to be put into action quickly to show that Shared Vision just might be different.”

Cabin Coffeehouse & Café owner Noemi Aylesworth was the first to entertain the idea, adding the Ojibwe greetings Aaniin and Bozhoo to the English Welcome on her door. Meuers gave Aylesworth a sheet on which several Ojibwe words were printed in case she wanted to add more signage. Aylesworth immediately had the idea to put the word sheets in “table tents” as a fun way to educate her customers a bit more about the area’s first residents.

A short time later, she shared some customer responses to the table tents. “A tourist from the state of Virginia asked what Ojibwe was so I explained. She thought that was really interesting. Today a family from Los Angeles was in to eat. The grandmother (originally from France) came to me and asked if she could please have a copy of the Ojibwe words. She wanted to share it with others back home. She was very grateful! That is so cool!"

More recently, state agencies, including MnDOT, the DNR headquarters, Bemidji and Itasca State Parks and Bemidji State University and Northwest Technical College in Bemidji, have come on board with the idea. “Their signs are permanent,” Michael said, explaining his hope is that the idea is sustainable city-wide.

Don Day, Tony Treuer and others are also giving Dispel the Myth presentations, subtitled, “Everything you wanted to know about Indians but were afraid to ask.” During the 2009-2010 academic year, Don gave 10 presentations himself or with others to groups including Russian nursing educators, Bemidji Sunrise Rotary Club, Red Lake and Robbinsdale high school teachers and at Northwest Technical College. In addition, presentations were given at the Log Cabin Coffee House, a MnSCU Diversity & Student Affairs Conference, the BSU American Indian Resource Center and two BSU human relations classes.

Don said most of the questions were basic: Do all Indians speak their language? Are all Indians rich because of casinos? Do Indians pay taxes? What are your experiences like in 2010 as an American Indian? Do Indians still experience racism? Do Indians believe in education? Are Indian elders well respected? About the only surprise question he was asked was why he doesn’t have a ponytail.

“I found the participants generally interested in knowing more about American Indians from a historical and contemporary sense,” Donald said.

Seventy people from the Bemidji area also are participating in Blandin Foundation training on Leadership in Ethnically Diverse Communities (LEDC). The program is four sessions spread over two months. The purpose of the program is “to develop the leadership capacity in ethnically diverse communities for the purpose of building intentional inclusion.” There is additional information along with the program brochure on the Blandin Foundation website: ledc.blandinfoundation.org.

“We are seeing wonderful relationships and networks forming,” said Becky Adams, who is in charge of leadership programs and recruitment for the Blandin Foundation.

The sign program, Dispel the Myth presentations and leadership training are among specific initiatives in the Shared Vision community agenda for change. Other specific initiatives have been identified in four areas: 1) cultural understanding and respect, 2) educational attainment and skill development, 3) civic engagement and leadership and 4) economic opportunity.

For more information, go to www.sharedvisionbemidji.com.

There is growing awareness among regional leaders that future prosperity requires a regional alignment of strategy and collective leadership among a diverse group of leaders. Out of that awareness, Impact 20/20 was created. With leadership from the Northwest Minnesota Foundation, private and public leaders came together to adopt three initiatives to address regional concerns. These initiatives address workforce availability and quality, access to broadband, and increasing the regional talent pool.

The HRDC has decided to claim ownership of the strategies needed to increase talent. The emphasis placed on this issue is understandable: our access to talent in the next 30 years is the limiting agent to economic growth. Although those of us fortunate to live here think it is the best place in the world, for many, northern Minnesota can be an acquired taste. We can’t afford to export all the talent we’ll need and it’s unlikely Northwest Minnesota will import people from Tallahassee or San Diego to work here. Similarly, most entrepreneurs are home-grown, not people from other parts of the country.

IMPACT 20/20’s initiative to address the talent issue will create four to five pilot projects throughout the region to increase on-time high school graduation rates and graduate more students from two- and four-year colleges. Candidate sites are Bemidji, Park Rapids, Thief River Falls and Win-E-Mac with an additional one to be chosen soon. Success will require community effort, not just school involvement.

Among the businesses and organizations that have invested time and resources in the initiative are Paul Bunyan Telephone Cooperative, Alerus Financial, Border State Bank, Sjoberg Cable, the White Earth Reservation Tribal Council, the University of Minnesota Crookston, Bemidji State University, Northland Community and Technical College, Northwest Service Cooperative, Pine-to-Prairie Cooperative, Red Lake Public Schools, the Northwest Private Industry Council, Rural Minnesota CEP, the Department of Employment and Economic Development, the Northwest and Headwaters Regional Development Commissions and the Northwest Minnesota Foundation.

This effort, also known as strategy aligned management, is a bold local effort to move the County from a service-oriented culture to an outcome-oriented one. Anyone familiar with local government operations knows how daunting that transition can be. With help from HRDC staff, the initiative was completed this past year.

What does that shift look like in real terms? Well, it could mean that an environmental services office is focused on improving water quality, not on just administering regulations. For human services staff, the shift might suggest that the goal is not to provide clients with public assistance, but to help families live independent of government assistance.

With new approaches and strategies developed, the county’s next challenge will be to integrate the budgeting process into this new framework.

The county’s leadership is transforming the nature of county government, not just in Beltrami, but in numerous other counties. We appreciate the county’s leadership and we’re grateful to be part of its effort.