Microsoft Word - Design Studio Notes #1

11/9/2007Slide1

Higher Paying JobsHow many high paying year round professional and staff jobs do you need in 2017 for your town to thrive?

If you graduate 100 students/year, you will have 1000 graduates in ten years.

Assuming 30% of the teens stay or return, you will need 300 professional positions.

Wesetupthisslideasthefirstslideandjustletpeoplelookatitwhiletheyaregathering.

Youneedenoughhighpayingprofessionaljobswithsufficientdiscretionaryincometosupportthelocal

businesseswhenthetouristsarenotpresentotherwisetheywillgooutofbusiness.

Mostpeoplewhohaveknowledgeofvariouseconomicdevelopmentgroupswilladmitthatintheir

visioningsessions,thisfirstquestionhasnotbeenposedtothegroup.Wetendtofocusonlabor

positionsorjustgettingasmanyaspossiblewithoutdistinguishingbetweenlaborandprofessionaljobs.

Atownshouldmultiplethenumbersofgraduatesbyatenyearcycle.Thentheycanestimatethe

percentageoftheiryouththattheywouldliketohavestayorreturnforprofessionalhigherpaying

positionsof$50,000+inadditiontothe$18/hourlaborposition.Thepercentagewillvaryandshould

recognizethatyouwillneedsomeprofessionalpositionsforpeoplewhowhattoimmigratetoyour

townbutwhohaveneverlivedtherebefore.Sothetotalnumberneededinatenyearperiodshould

probablybelarger.

Youcandownloadorviewtheactualpresentationatwww.designstudio.pbwiki.com

Slide2

Higher Paying Jobs

Assuming 50 higher paying staff positions per $10,000,000 in revenue, how many $10,000,000 per year niche companies would you need in the next ten years to get 300 professional positions? (50 professionals/company)

Wemustmakeassumptionsthatwillvarywiththeproductandservices.Forexample,asoftware

companywillhavefewerstaffandprofessionalpositionsthanmanyothercompanies.Andthe

proportionmaydecreaseovertimeasthecompanyimprovesitsproductioncapabilitiesevenina

marketthatisgrowing.Forthesakeofdiscussion,pleaseletsagreewiththe50positionsforeach

$10,000,000inrevenue.

Ifyouneedthreehundredpositions,thenyouneedsix$10,000,000nichecompaniesoverthenextten

years.

Ifyouhaveaspecificgoal,itissometimeseasierorwebecomemoreeffectiveinreachingthatgoal.

Therefore,wewouldencourageatowntotryandanswerthisquestioneveniftheyhavetomake

difficultassumptions.

Slide3

How Much Would You Pay..?

How much would your county pay for an invention that could grow into a $10,000,000 company over ten years ?

How much would your county invest in an invention and a management team that could grow a $10,000,000 /year publicly owned corporation over ten years?

Nowhereiswherethediscussiongetsinteresting.

Ifthecountyortownweretoonlypurchaseandinventionandgrowtheirowncompanyovertime,what

mightthatbewillingtopayforthattechnology?Youneedtoconsiderissueslike:

Typeofpositionsandsalaries Localrevenuesthroughcorporate,realestateandothertaxesthatbenefitthetownorcounty Suppliercompaniesthatmightheadquarterinyourtown

Thesecondquestionisinterestingbecausewecanfindprofessionalmanagerswhowouldmovetorural

Michigantoleadacompany.Theywouldneedafairsalary,bonus,optionnottoexceed25%ofthe

locallycontrolledandpubliclyownedcompany.Thiswouldensurethattheheirsoftheownerswould

notsellthecompanyjusttogetcashwithoutthetowngettingitsfairshare.

MostcommunitiesandEconomicDevelopmentOrganizationsandpoliciesdonotaddressthisprocess.

Slide4

Design Studio Network

The best way to predict the

futureis to create it.

Teensunderstandthisquotationfromtheirexperienceswiththewebandthenewbusinessesthathave

beencreatedbyteensandyoungadults:BillGates,MichaelDell,Google,MyFace,etc.Teensactually

understandbetterthanmostadultsthatteenscancreatethefuture.Theyareseeingithappenbefore

theirveryeyes.IfateenlivesinSiliconValleyorBoston,theyliveinaculturethatexpectsand

challengesthemtocreatethefuture.Michiganfocusesonlaborjobsforadultsnotinnovationbyteens.

Toooftenwereacttowhatishappeningratherthaninfluencingthefuture.

Slide5

Design Studio Network

A distinctive 21st century economic engine fueled by

"gifted & talented" teens collaborating with their peers in

other towns.

Fourkeywordsinthispresentation:

WearepartofaMichigan20thcenturyculturethatfocusedonEXCELLENCE:

Doingtheordinaryexceptionallywell.

1. Distinctive:Doingtheoutoftheordinaryjustwell.

2. Economicnotasocialengine

3. CreativelyGiftedandOrganizationallyTalented

4. Collaboratewithtownsthroughbuildinganetworkoftowns

Slide6

Michigans ProblemIn the first half of the 20th century, Michigan was a center of innovation and a creator of industries and suppliers often in rural towns.

In the second half of the 20thcentury, Michigan was unable to refill the innovation pipeline.

WherewasthethirdhightechventurecapitaloftheU.S.inthe20thcentury?Detroit19001929

WherewasthefourthhightechcenteroftheU.S.aroundaviationin1945?WillowRunAirportin1945.

Theautoindustryhadtheengineering,manufacturingandassemblycapabilitytobuildthebombersfor

WWIIbutdecidedtogetbacktomakingmoneyafterthewar.TheautoexecutivesandtheSTATEdid

notseeacommercialairlinebusinessinthefuture.Instead,theindustrywenttoSeattle.

Educationinthefirsthalfofthe20thcenturywasaninvestmenttocreatealaborforcethat

couldreadmanualsandworkindecimalsaswellasuseacalipertomeasurethings.

Educationinthesecondhalfofthe20thcenturyhasbecomeanextravagantexpensewhere

wefinanceandeducatetalentpoolforAustin,Texas,SanFrancisco,California,Denver,Coloradoand

theResearchTriangleofNorthCarolina.

WhilewehaveGentexCorporationanditsElectrochromictechnology(automaticdarkeningofmirrorsin

yourrearviewmirror)aswellasDowCorningthatemergedinthesecondhalfofthiscentury,wehave

lostourcompetitiveedgeasanindustrycreatorinruralcommunities:HowbigwasBattleCreekin

1909?Dearbornin1907?Midlandin1910?Fremont,etc.

Slide7

Culture of Mastery or Innovation?

Steamships were not created bymastering the technologies of sails and rigging.

Jet aircraft did not result from...mastering piston-propeller aircraft.

Transistors were not invented bymastering vacuum tubes.

Photocopiers did not result frommastering carbon paper.

Principle: Breakthroughs are not created bymastering current products or technologies.

Eachtownmustmakeachoice:MASTERYORINNOVATION

Willyoufocuson20thcenturyengineeringbasedmastery?

Orwillyouhaveatownwhosedrivingforceisinnovationandpioneeringanddesign?

Listentothelanguageofyourtownculture.Itwilltellyoualotaboutyourcorecompetencies.

Clearly,itisnotquitethissimple.Onceaproductisintroduced,theproductlifecycledemands

incrementalimprovementormasterytechniquesbutitcannotbethedrivingforce.AppleandSteve

Jobshashadfourmajorinnovations:PC,Macintoshinterface,PixarandIPOD.MicrosoftandBillGates

boughttheDOSoperatingsystemandsoldittoIBM.WhatwasMicrosoftsnextmajorinnovation?

TheyboughtHotMailandseveralothercompaniesbutwouldyouratherhaveownedMicrosoftor

Applestockoverthelastfiveyearswhenitbeganitsrunat$17/share.

WillwebeaboutMASTERYorINNOVATION?

YouwillnotsucceedwiththeDesignStudioifwetryanddoboth.

Slide8

Culture of Mastery versus Design

Steelcase is an example of

Herman Miller is an example of

SteelcaseCorporationinGrandRapidsisalocalexampleofMASTERY.Theytookthepartialheightwall

designedbyHermanMillerandmanufactureditcheaperandprobablybetter.Theyeventuallygota

largershareofthemarketbutnotthehigherprofitmarginsharethatHermanMillerhad.

Whoneedstheothercompanymore?BillWilkiearguesthatSteelcaseneedsHermanMillertokeep

designingnewproductsfornewmarketssothatSteelcasecanmanufacturethemandcompete.

Withoutnewdesign,themarketdriesup.

HasanyonebeenintheSteelcaseorHermanMillerR&Dfacilities?

PyramidwasbuiltbySteelcase.HermanMillerputitsR&DinaBARNYARD.

Abarnyardisaboutprocreation.Acenterofcreativity.Agreatenvironmentforinnovation.

SteelcasechoseasymbolthatisamonumenttotheDEAD.TheyputtheirR&Dstaffinan

environmentthatshowcasestheachievementsofthepastnottheinnovationsofthefuture.

TheychoseasymbolthatcomesoutofacultureofMasterynotInnovation.

HermanMillerchoseamilieuthatreflectsthecreativeprocessforthefuture.

Slide9

A Competitive-EdgeLocally owned companiesDesigning products and servicesWith higher than normal profitsFor national & international marketsWhere the profits come back home And create higher paying jobs

CompetitiveEdge:thisisWilkiessimpledefinition.Itistheonlywayhehasdiscoveredthatasmall

ruraltowncangetacompetitiveedgeandhaveachancetoproducethedesiredresultsofaTHRIVING

town.Eachtownneedstodefinethecharacteristicsofthatcommunity.

Isthiseasy?NO!Butifyouneverfillthepipelinearound:

DESIGN,REDESIGN,INVENTORSNETWORK,GROWINGOUROWNHEADQUARTERS,THENITWILL

NEVERHAPPEN.

InBillWilkiesanalysisofHomeTownCompetitiveness,theystatedthattheirgoalwastomakeatown

competitive.Thatsoundslikeagoodthing.However,whenyouexaminewhatitreallymeans,itfalls

shortofwhatisnecessarytothrive.IntheNFL,teamsthatareatthebottomwanttobecome

competitive.Theywanttomaketheplayoffs.ButmanycompetitiveNFLteamsneverwinitall.

Eventually,theirfansbecomedisgruntled.Yourtownisnodifferent.Youwillbecomedisgruntledwith

bringinginfranchisesandbranchplants.TheDesignStudioNetworkisdesignedtogiveatowna

COMPETITIVEEDGEsothattheycanwinthebiggamebygrowinglocallyownedcompaniesthatsell

highmarginproductsandservicestonationalmarkets.Seewww.designstudio.pbwiki.com

Slide10

The New X FactorsGifted & Talented Teens

Most creative & underutilized natural resource Most likely (3%-5%) to think outside the box Most likely resource to create jobs/companies

Most of them have gone underground Towns export them and they do not return All of them need to be valued and challenged

YouallknowwhatanXfactoris?Itistheunknownandunpredictable.

Insteadofvaluingtheuniqueresourcethathasbeenplacedineverytown,county,stateandnation,we

haveforcedthemundergroundbecausetheythinkqualitativelydifferentthaneverybodyelse.We

couldhavegiventhemcopingskillsandexplainedthesituationbutnowesaid,Theywillthrive.

Doyourememberthe1st,2ndand3rdgraderwhousedtoraisetheirhandtoansweralmostevery

questiontheteacherasked?Infact,bythirdgradetheywereaskingquestionsthattheteacherdidnot

knowtheanswerto.By4thgrade,theynolongerraisedtheirhandoraskedquestions.Thepeergroup

aswellastheteachershadcommunicatedthattheeducationprocesswasnotcreatedforpeoplelike

them.Thatisnottobecriticalofaneducationprocessdesignedfor95%oftheyouth.Butwein

MichiganallowedtheMICHIGANlegislaturestowithdrawthelineitemforGiftedandTalentedaround

1990.Thattargetedmoneyforthissmallsegmentwenttobuypaper,pencilsandsalariesinstead.

WecanfindtheG&Tteens.BillWilkiebelievesthatwecanengagethemifwewouldvaluethemby

askingfortheirhelparoundareallifeopportunityfortheirhometown.

Slide11

Design Studio?National Trend: Design SocietyApplied think -tankInnovation & RedesignVirtual or on-lineCollaborative

NationalTrend:Wehavemovedfromanagriculturaltoanindustrialtoinformationtoaknowledge

society.Whatisnext?IntenyearsitwillbecommontorefertoDESIGNSOCIETY.WallStreetandselectedpublicationslikeFASTCOMPANYmagazinearealreadytalkingaboutit.www.fastcompany.com

Appliedthinktank:Butonethatlookslikethemessyinventorsgarageandreeksofcreativity.

Virtual:Ateenspeergrouptodayisnotlocal.Itisinternational.Theycananddocommunicate

virtually.Thismaybenewforusbutnotforteens.

Collaborative:TheDesignStudiowilleventuallyhavesomedesignersorinventorswhodonotwork

wellinateam.Butweareinterestedinpromotingacollaborativeteamapproachwithallofitsinherent

powerandbenefits.

Slide12

Design StudioIt is not a teen simulation It is not a volunteer programIt is about the

destiny of their hometown

MichiganhasmanyGiftedandTalentedprogramsthatitfundsincludingfootball,girlsandboys

basketball,baseball,track,etc.Insomehighschool,youalsohavethedebateteam,thedramaclub,

etc.However,theDesignStudioisaseparateinstitutionfromthehighschoolbecauseitisnota

simulationexperienceoravolunteerunpaidprogram.

Veryfewruralcommunitieshavebeenabletogrowlocallyownedheadquartersforproductsand

serviceswithanationalorinternationalmarket.Inmostcases,itisbecausethetowndidnotseea

logicaloraffordablestrategy.Ifasuccessfulentrepreneurhappenedtobasetheircompanyinyour

town,itmightreplicateitselfbutnotveryoften.

TheDesignStudiowilleducateandchallengeahighlycreativeandenergeticteensegmenttoinfluence

thedestinyoftheirHOMETOWN.Itisnotagame.Moreover,wecanhavemorethanoneBIGwinner

inacounty,aregionortheentireStateofMichigan.Itisseriousbusiness.Iftheseteensandtheir

successorsarenoteffectiveoverthenextdecade,theirhometownmaysurvivebutitmaynotthrive.

TheteensintheDesignStudiowillunderstandwhatisatSTAKE.NOPRESSURE!

Keyexecutivesinmajorcorporationsdonotbecomewealthyaroundtheirsalary.Itisthedeferred

compensationpackagesofbonusandstockoptionsthatoftencreatessubstantialwealth.Ifateamhas

asuccessfulproject,theywillreceivecompensation:cash,stockorroyalties.Inaddition,theywillwin

collegescholarshipsasindividualsandteamsbecauseoftheirdistinctiveportfolios.

Slide13

Design Studio Process 15- 30 teens within six months in Virtual teams of 3 to 4 on several projects will Design and redesign products and services Around the passion of a champion Collaborate with other design studios as well as On-line collaboration with teens in the U.S. Selling products to towns and companies For a self-sustaining non-profit Design Studio

3MChampionModel:

Everynewproductdevelopmentprogramfailsonaveragethreetimesbeforeitissuccessful.Whena

teamat3Mencountersaninsurmountablebarriertosuccess,theydismantletheteambutletthe

CHAMPIONcontinueononeadayaweekuntiltheyfindasolution.Thentheyreconstituteanewteam

andsothroughthesameprocessonaveragethreedifferenttimes.Thiswillbeacoreelementofthe

DesignStudio.

SELFSUSTAININGbutNONPROFIT

MichiganPublicAct444allowsa16and17yearoldtoserveasavotingmemberonaBoardofTrustees

aslongasthenumberof16and17yearoldsdoesnotexceedthenumberofadults.

TheNonProfitDesignStudiowillusuallysellaproductorservicetoatownorcorporationforcash,

stockandoraroyaltypaymentthatwilleventuallymaketheDesignStudioselfsustaining.Theycan

alsobeacontractorwithacompanyortownfordesignservicesintheirniches.

Slide14

Beneficial Outcomes One self sustaining non-profit Design Studio One or more specialized for-profit studios. 5-10 niche companies headquartered in town Higher paying jobs created

Labor, professionals and owners Youth invest in the destiny of their hometown Retain a higher percentage of those youth Increase a towns revenue base

Slide15

B ill Wilkies Role in 2008 Identify two teens with communitys assistance

One creatively gifted One organizationally talented

5+ towns meet monthly Three objectives (teach--challengeignite):

1. Functioning Design Studio in 4-6 months2. Train teens to find inventors & create database3. Funding proposal for foundations to accelerate not

createby building on the $47,500,000 Kellogg Foundation challenge grant from 1992-1999 to the Michigan Community Foundation Youth Project & YAC

BillWilkiesroleistoteachchallengeignite.Heknowshowtodothisandhasdoneitwithteens

since1985whenhewroteamanualwithhissonJasonentitled,TheCollegeBoundFootballPlayer.

TheyhaveappearedinUSATodaythreetimesandconductedworkshopsforhighschool8th,9thand10th

gradersaroundtheirpassionforfootballandbasketballuntil1996.

www.footballrecruitingtips.comandwww.nextgenerationseries.com

KelloggsYouthChallengeGrantProjectinthe1990swasawonderfulinfrastructurebuildingproject.

TheYouthAdvisoryCouncilsorYACshasbeenagreataddition.Infact,theygottheMichigan

LegislaturetopassMichiganPublicact444thatallowedunderageteens(16and17yearolds)tolegally

serveontheBoardofTrusteesofnonprofitcorporationswithavote.However,theDesignStudio

NetworkwillemphasizeanewYACYouthACTIONCouncilthatwillfocusoncollaborativeeconomic

developmentACTIONstrategiesforruralMichiganTowns.Aseconddistinctiveelementofthe

foundationproposaldevelopmentprocesswillencouragetheteenstoapproachKelloggFoundation

leadershipearlyaboutdesigningaCOLLABORATIVERATHERTHANANADVERSARIALORCOMPETITIVE

APPLICATIONPROCESS.Thisismoreconsistentwitha21stcenturyapproachtorelationship.

Slide16

Where do you fit in? 3-4 town leaders introduce the project to:

Teens, Parents, leaders and Institutions Each town funds the first year: $3,600/town + Two computers, software, communications, etc. Prepay the first quarter: $900/team Be available to problem solveand mentor Allow teams to selectively access your network

Slide17

Does it make sense to you?

Can it work?

Can you actively support this idea with other decision makers in

your community?

Slide18

???

Next Steps

Slide19

William R. Wilkie471 West Long Lake DriveHarrison, Michigan 48625

989.539.1928 or 517.410.9115wwilkie@lead-users.com

www.designstudio.pbwiki.com

Reference: Dr. Emmett LippeRetired Superintendent

Novi Public Schools 989.539.4062

Slide20

Virtual Design StudioA local self-sustaining nonprofit Design Studio is organized and operated by gifted and talented" teens. Half of the Studios voting trustees are 16 and 17 year olds. (Michigan Public Act 444) Each local design studio is part of the Virtual Design Network. Each studio networks local teens to national peers. Together, they build a network of inventors and bring home their ideas. The studio staff redesigns inventions creating niche companies. Products are sold in national markets returning better than average profits to your HOMETOWN.

Slide21

Examples Bill Gates and Michael Dell

Great Lakes Motor Works www.lead-users.com/GLMW.pdf

Girl Power in Monroe, Michigan -www.lead-users.com/girlpower.pdf

Googles Product Development

BillGatesandMichaelDellaretwoteenswholeftcollegebeforetheyturnedtwentyandshaped

anindustry.WhydowenotexpectteenstodothatinMichigan?

GreatLakesMotorWorksisagoodexampleofgrowingalocallyownedheadquarters.Inwhat

waydoesitdifferfromtheDesignStudiomodel?

GirlPowerhasnowbeenshowcasedinmagazines,newspapersandontheTVprogramTheVIEW.

Sheisasixteenyearoldwhointwoyearshasbuiltawebbaseddesignbusinessthatgenerates$70,000

permonthwithlotsofaccompanyingproblemsbecauseoursocietalsystemsarenotdesignedtohandle

thisexceptionalperson.

GooglesProductDevelopmentprogramrequiresitsyoungR&Dtypestospendonedayaweek

ontheirownpersonalpassion/projectthatmightbenefitthecompany.AccordingtotheirCEO,allthe

newinternallygeneratedbusinesseshavecomefromtheireffortsnottheprojectsdecidedbythe

ADULTexecutivecommittee.