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Title: A1259991049SBhoe

2008 Fall Civic Leadership Forum September 4 6,
2008 - The Woodlands, TX
  • Contents

Attendees.... 2 Public
Perceptions in Remarkable Times.... 3 Welc
ome..... 5 Agenda
.... 6 Process and Ground
Rules..... 7 Houston Our Past As
Prologue .... 8 Pre-Retreat Survey
Results .... 9 Introduction to
Scenario Planning........ 10 Conventional
Wisdoms About Our Future.. 11 Human
Capital Development Fishbowl Dialogue... 17 Ec
onomic Development Fishbowl Dialogue .. 23 Ke
y Issues From the Fishbowl Dialogues... 29
Driving Forces... 32 Generati
ng Scenario Snippets ....... 33 What
Stands Out So Far? ....... 35 Scenar
io Snippets... 37 Intro to
Learning Journeys... 44 Learning
Journey Agenda Categories.. 45 Learning
Journey Plans .......... 50 Retreat
Closing ....... 57 Appendix
.... 58
CHF Fall 2008 Business and Civic Leadership Forum
Session I September 4 - 6, 2008 Page 1
  • Attendees

Bilton, Interim President and CEO, Center for
Houstons Future Andrew Bland, Special Agent in
Charge - Houston Field Office, Federal Bureau of
InvestigationRead Boles, President, Texas Tamale
Company Heather Browne, Director, Corporate
Communications, KBR Randall Butler, Executive
Director, The Institute for Sustainable
PeaceKatherine Cabaniss, Executive Director,
Crime Stoppers of HoustonLorine Clark, Ed.D.,
Global Leader, Diversity and Inclusion,
LyondellBasell Industries Renee Cross, Associate
Director, University of Houston, Center for
Public PolicyAnn Davis, Senior Special Writer,
The Wall Street JournalMoritza Day, CPA, Day
West Associates, Inc.Andres Diamond-Ortiz,
Assistant Vice President, Estrada Hinojosa
Co.Jack Drake, President, Greenspoint Management
DistrictMark Ellis, Director, DEPFA First Albany
Securities, LLCJustin Gannon, Office Managing
Partner, Grant Thornton, LLPPatricia Garris,
Manager, Community Citizenship Texas, State Farm
Mutual Automobile Insurance CompanyAlbert
Gaylor, Vice President, Industry Relations and
Diversity, Sysco CorporationTommy Inglesby,
Associate Partner, McKinsey Co.Jon Iszard,
Chief Executive Officer, The Health MuseumSusan
Kaler, Director, Policy Administration, Houston
Independent School DistrictShannon Langrand,
Principal, Arnold Langrand CommunicationsAntho
ny Love, President and CEO, Coalition for the
Homeless of HoustonVidal Ramirez, II, Financial
Advisor, Merrill Lynch - Global Wealth
ManagementMargaret Robinson, Principal, Asakura
Robinson Company, LLCDavid Ruiz, Senior Vice
President, Community Development Texas/New
Mexico, Bank of AmericaMary Ryder, Senior Vice
President, Strategic Planning, Amegy Bank of
TexasMichele Sabino, Ed.D., Executive Director,
University Advancement, University of Houston
Downtown Department
Juan Torres, Principal, Mir Fox Rodriguez,
P.C.Hector Villareal, Chief Executive Officer,
LuchoHoang Quan Vu, Partner, Banking and
Finance, Mayer, Brown, Rose and Maw LLPEric
Walker, Vice President, Development and Leasing,
NewQuest PropertiesCarla Lena Wyatt,
Environmental Liaison, Harris County Public
Infrastructure Department CHF STAFF Chris
Bilton, Interim President and CEO Jaymie Pedigo,
Director, Development Sandra Wegmann, Manager,
Strategic Planning Claudette Harvey, Coordinator
Leadership and Administration FACILITATION
TEAM Margaret Vaughan Robinson, MCV Consulting
Betty Plevney, MCV Consulting Jessica Timm
Jarvis, MCV Consulting Mick Blasick,
Collaborative Strategies
CHF Fall 2008 Business and Civic Leadership Forum
Session I September 4 - 6, 2008 Page 2
The Fall 2008 Leadership Forum was kicked off on
Monday, August 18th, with a two-hour event hosted
at Rice University. CHF Interim CEO Chris Bilton
gave an enthusiastic welcome to the class and
then introduced CHF Board Chairman George
Martinez who added his own welcome and shared how
his participation in the inaugural Leadership
Forum class of 2000 had substantively changed the
way he engaged as a Houstonian, both personally
and professionally. Forum lead facilitator
Margaret Vaughan Robinson then walked the class
  • Kick Off Meeting Public Perceptions in
    Remarkable Times

through the overall process for the Leadership
Forum and turned the podium over to the events
featured speaker, Dr. Stephen Klineberg,
Professor of Sociology at Rice. Dr. Klineberg
gave his presentation, The Houston Area Survey
1982 2008 Tracking the Economic and
Demographic Changes Through 26 Years of Houston
Surveys. He gave the class important insights
into the economic and demographic transformations
Houston has undergone over the last 27 and what
lies ahead for our city. Below are some
highlights from the presentation and the and
conclusions he left us to consider as we begin
our Leadership Forum experience. For the full
presentation, please go to http//www.centerforho
  • Kick Off Meeting Public Perceptions in
    Remarkable Times
  • Conclusions Houston and America Face some
    formidable challenges
  • This city and nation will need to nurture a far
    more educated workforce and fashion policies that
    can reduce the growing inequalities and prevent
    the rise of a new urban underclass.
  • To attract the most innovative companies and
    talented individuals, Houston must focus on being
    an environmentally appealing urban destination
    and develop the research centers that will fuel
    the critical drivers of the new economy.
  • If the region is to flourish in the 21st
    century, we will need to develop into a much more
    unified and inclusive multiethnic society, one in
    which equality of opportunity is truly made
    available to all citizens and all of its
    communities are invited to participate as full
    partners in shaping the future of the Houston

We met again for Session I of the Fall 2008
Leadership Forum, September 4 - 6, at the
Woodlands Waterway Marriott. Chris Bilton
welcomed the class to the retreat and thanked
everyone for their participation. Over dinner, he
gave us an overview of the work of the Center,
including CHFs key areas of focus and projects
that have been born out of the Leadership Forums
since their inception in 2000. Next, Michael
Jhin, Chairman
  • Welcome

of the CHF Leadership and Engagement Committee,
added his welcome, thanking everyone for taking
this time to invest in the future of the Houston
region. Chris then introduced the facilitation
team that would be working with us throughout the
Leadership Forum Margaret Vaughan Robinson,
Betty Plevney and Jessica Jarvis of MCV
Consulting and Mick Blasick of Collaborative
  • Session 1 Agenda

Following dinner, Margaret walked us through the
Leadership Forum overall process and objectives,
the Session I agenda, and ground rules for our
work together. She then asked us to each take a
moment to introduce ourselves and the
organizations we represent.
  • Process and Ground Rules

  • Houston Our Past as Prologue

We began our work together by taking a look at
the history of Houstons development from its
bold and improbable founding by the Allen
brothers in 1836 to our present as the 4th
largest and most diverse city in the nation. To
help bring that rich history to life, we were
joined by Gene Vaughan, CHF Founding Chairman and
Director Emeritus, and James Calaway, Founding
CEO of CHF. They, along with Michael Jhin and
many others in the class, shared their knowledge
of some of the key events and people that brought
us to where we are as a city and
region today. Together we examined the role civic
leadership has played in the growth and success
of Houston, and noted the patterns, values and
tacit operating principles that are evident
throughout our history. We agreed that there are
many prisms through which to view this history
and that we must make the effort to understand
our regions history and current reality through
as many different lenses as possible. This is one
of the goals of the CHF Leadership Forum
experience. A copy if the History Map is
available at http//www.centerforhoustonsfuture.o
  • Themes
  • Entrepreneurial spirit
  • Civic leaders take central role in development f
    the city
  • Foresight and vision
  • Strong will to push forward against all odds
    impractical ideas prevail
  • Willingness to put together public/private
    partnerships together
  • Perseverance fortitude
  • Practicality / enlightened self interest
  • Business community under girds the civic progress
  • Take advantage of federal funding

  • Pre-Retreat Survey Results

Reconvening again on Friday morning, we received
a warm welcome to the Woodlands from CHF Board
member, Nelda Blair, and Nick Wolda, President of
The Woodlands Convention and Visitors Bureau.
Margaret then led us into our work for the day by
presenting the summary of
results from our pre-retreat survey, including
the class breakdown of native Houstonians versus
transplants, how long we have lived in the
Houston region and our views on the outlook for
Houstons future. Our graphic facilitator, Betty
Plevney, recorded the highlights.
CHF Fall 2008 Business and Civic Leadership Forum
Session I September 4 - 6, 2008 Page 9
  • Introduction to Scenario Planning

We were now ready to dive into the process of
understanding the innumerable challenges and
opportunities that face our region and how we can
address them. To do this, we utilized the
scenario planning process which helps expand our
thinking about how our world might unfold over
the next couple of decades and the implications
of those future possibilities for the strategic
direction we need to set for Houston. Margaret
gave us an overview of the scenario planning
methodology and its usefulness as a strategic
planning tool.
  • Conventional Wisdoms About the Future

We began the scenario planning process by
articulating our official versions of the
future -- the conventional wisdoms and
assumptions we all carry about how the future
will unfold. We came up with outlines of four
different stories about what we think will happen
in the Houston region over the next 10 - 20 years
and then identified the common themes that cut
across them all.
Storyline Title Houston Leads Key Events 1.
Continuing poor education -- rising proportion of
uneducated work force 2. U of H becoming Tier 1
-- political and business leadership will be
driven to improve U of H 3. Combination of
international nature of Houston, political trends
and super energy companies will result in Houston
being one of the centers of the world for
renewable energy 4. Houston becomes center for
nanotech/biotechnology Key Players 1. GHP 2.
Business coalitions work together to invest in
education 3. Major existing and new energy
companies 4. Rice, BioHouston and other
nanotech/biotech companies 5. Local
leaders Themes 1. Business coalitions will form
to adequately address work force issues to avoid
economic and education crises 2. Dirty air
forces create crash program to clean air 3.
immobility forces expansion of high capacity
transit process Implications and Issues for
Consideration 1. higher cost of living to support
infrastructure growth with people making less
money...growing numbers of people below the
poverty level 2. Growth coming from outside not
inside City 3. Houston ISD just became a "chapter
41" school - meaning that it will have to
transfer some of its tax revenue to the state -
how can that be when we have an underprivileged
student population? How do we change the public
school funding problem, and what role can HISD
play in that decision? 4. demographics are
changing...get used to it 5. ability to attract
major national and international events important
for reputation and investment 6. Major donors are
aging...impact on the community 7. engaging and
identify young leaders critical for community
growth and development
  • Conventional Wisdoms About the Future

Storyline Title (no title) Key Events 1.
Hurricane 4 or 5 category - Gulf of Mexico will
advance to the Southbelt 2. Emergence of
alternative energy source that reduces the need
for oil and how it will affect Houston. 3.
Education - growing gap between educated and
un-educated. How will wealth be transferred from
the older more homogenous generation to the
younger multi-ethnic generation? 4. Demographic
Shift - how will wealth and business leadership
transfer. Ties into education. Is the emerging
demographic receiving the education necessary to
take over Houston's business infrastructure? 5.
Current election and the momentum it will create
to diversify political business leadership 6.
Suburban Sprawl coming to a tipping point - will
this be a positive thing for the inner core,
will it create several nodes throughout
Houston? 7. Increase in Air Pollution because of
the increase in population Key Players 1. Will
not be individuals - it will be groups of people
and business alliances 2. Major Corporations 3.
Non-Profit Sector 4. HISD 5. Leaders of the
Medical Center 6. Metro 7. Federal Government 8.
Local Government Theme 1. Debt will hit a tipping
point Implications and Issues for
Consideration 1. Closing gaps...wealth,
education, etc... 2. How many of these events are
driven by actions OUTSIDE of Houston (education
policy, immigration policy, energy policy,
disasters). Are we doing enough to influence
these events given how material they are to
Houston? 3. Funding of the community...non-profits
, arts, etc. 4. quality of life
issues...transportation, education, environment,
faith in leadership, fostering emerging
leaders 5. political shifts in leadership/involvem
ent 6. Population numbers high for minorities,
however, actual economic control not in line with
the population. 7. populationgtresources 8.
environmental responsibility REAL recycling
options, REAL transportation options, REAL
accountability for deleterious choices 9. shift
from individual influencers to groups 10. Where
is state government in all of this? 11. low cost
of living in Houston relative to rest of country
is a major attractor
  • Conventional Wisdoms About the Future

Storyline Title Team Bleakhouse / Keepin it
Real Key Events 1. Population growth 2. Education
gap of incoming/immigrant populations 3. Lack of
bench strength in the local political arena 4.
State of healthcare-specifically folks' access to
quality healthcare 5. Water rights and related
implications scarcity of resources 6. Continued
emergence of India and China as global
powerhouses 7. Houston's position on the energy
stage renewable energy arena 8. Move to mass
transit as the solution to depleting resources
that affect infrastructure growth 9. Maintaining
current position as a leading location for
businesses corporate headquarters Key Players 1.
Elected officials 2. Community leaders and
activists 3. Business leaders Theme 1. Lack of
infrastructure Implications Issues for
Consideration 1. importance of energy/alternative
energy 2. Expanding Infrastructure... Capacity 3.
outsourcing labor 4. In sourcing labor 5.
population/immigration adds stress and shapes
growth 6. Mobility solutions critical to Houston
success in the future 7. Major theme is Houston's
position relative to alternative energy 8.
sustained leadership / growing our own 9. Could
impact of potential for weather related disasters
impact corporate headquarters staying here or
moving here 10. transportation 11. education 12.
Lack of visible leadership from our elected
officials on key topics / issues 13. disjointed
communities 14. It takes a village to build a
city -- need for the involvement of elected and
appointed officials, business leaders, community
advocates and residents. 15. could the virtual
workspace make Houston less relevant 16.
Unbelievable resources, talent, money, spirit
must be harnessed to address existing and
emerging challenges so that we become the world
class city we aspire to be.
  • Conventional Wisdoms About the Future

Storyline Title Avoid the Detroit Demise Key
Events 1. Evolution of the Energy Economy Key
Players 1. Energy companies and alternative
energy leaders 2. Scientists and Technology
Leaders 3. Small Business Entrepreneurs 4. Land
Use Professionals and Civic Planners 5. Consumers
--will they change habits 6. Job Training
Resources People--to retrain the work force and
redirect the young work force Themes 1. Avoid the
Fate of Detroit -- don't lose relevance 2. Fuel
Mix will change and we need to remain innovative
as alternatives are increasingly important 3.
Even if we become an alternative energy leader,
will it be the same boon to Houston's
economy/will it be relevant? 4. Houston may get
complacent and another city comes up with the
game-changing solution 5. But after all, Houston
has been dealt a great hand--even traditional
energy and infrastructure could get MORE VALUABLE
as every drop helps 6. Will Suburbia become
uneconomic and will Houston sprawl become a
bigger liability? Implications and Issues for
Consideration 1. We are assuming, and hopefully
correctly, that Houston already has an advantage
here and the game is ours to lose. 2. Everybody
assumes suburbia will lose relevance, BUT how
about turning Houston's many suburban clusters
into new work-life clusters that make sense in a
more resource constrained world? 3. avoiding
silos by integrating population, promoting
interactions (transportation) 4. Staying
competitive or on top 5. New markets to be
identified for future growth opportunities 6.
Alternative energy focus will impose other
location options for energy corporation
headquarters. 7. Increasing 'suburbanization' and
it's impact on the city center 8. Houston's
competitive advantage... 9. gentrification and
its impact on displaced populations 10. Will
Houston commit to going "green"? 11. Zoning will
become more important to planed development
  • Conventional Wisdoms About the Future

Storyline Title Moving without at MAP!!! Key
Events 1. Major disaster 2. Immigration
movement 3. Infrastructure not adequate Key
Players 1. Government officials 2. Business
leaders 3. HGAC 4. Elected officials 5. Community
leaders Themes 1. Decisions made based on
business and commerce 2. Mobility of people into
the workforce, schools and around the City 3.
Lack of collaboration among educational
institutions Implications and Issues for
Consideration 1. Mobility - relying on shifting
populations 2. Exposure to natural and man-made
disasters 3. catastrophic natural disasters 4.
Growing authority of business - taking
responsibilities that were previously government
owned 5. How do we build a sense of 'Community',
within an active, continuously changing
population? 6. preparedness... lack of?? 7.
pervasive impact of immigration policy and
enforcement 8. controlled growth that's flexible
enough to support new innovate
  • Conventional Wisdoms About the Future

Storyline Title (no title) Key Events 1.
Population explosion double in the next 20 years
immigration policies key as population from S.
America represent largest immigration group. 2.
Shift from conventional to alternative energy
solutions 3. Exposure to Disasters natural
(hurricanes, flooding) man made (terrorism) 4.
Economic shift resulting from population
explosion and energy shift (infrastructure
concerns) gaps among work force, housing,
transportation, educated workforce (skilled labor
and science/math/technology) Key Players 1.
Population explosion Policymakers (immigration,
education) Immigrants (S.America economies)
Business Leaders (infrastructure, future leaders,
emerging entrepreneurs/new business leaders)
Emerging community activists/leaders Themes 1.
Stresses from Growth 2. Consequences of Growth 3.
Fulfillment of Dreams Implications and Issues for
Consideration 1. change in energy industry 2.
Strain on current infrastructure 3. Possibility
of natural disaster(s) significantly impacting
the area 4. Education of workforce important for
diverse job offerings 5. Growing gap between
haves and have nots 6. terrorism event in ship
channel could be devastating 7. adequate
education of workforce 8. Changing Economic
Focus 9. Immigration a must for the Houston area
due to increase in opportunities 10. Adequate
Educational/Training opportunities 11.
Players...."For Profit" and "Not For Profit"
Working Together 12. If the economies of other
countries improve
  • Themes from Conventional Wisdoms
  • Population explosion
  • Growth in immigration
  • Stress on infrastructure from transportation to
  • Void in local leadership
  • Education must be key
  • Need for shift in how we approach creating
    solutions for our civic issues
  • Optimism and pessimism side-by-side
  • Shift to alternative energy evolution of the
    energy economy
  • Inadequate infrastructure
  • Pollution
  • Unequal access to quality healthcare
  • Impact of a major disaster weather, terrorism,

  • Dialogue on Human Capital Development

Having established several versions of how we
think Houston will unfold over the next 20 years,
we were ready to more closely examine the
complex, interrelated sets of issues that drive
the future of our region so we might consider
alternative ways the future could unfold. To do
this, we participated in two Fishbowl Dialogues
- one on the regions education and human capital
development and the second on the regions
economic development. Scott Van Beck, Executive
Director of Houston A Challenge, hosted our
first conversation that looked at the multiple
aspects of education from early childhood
development through higher ed, as well as the
challenges of educating the rapidly growing and
incredibly diverse population in the Houston
SVB I highly recommend the book Disrupting
Class it talks about the concept of Disruptive
Innovation as a mechanism for revolutionary
change we have a lot of Disruptive Innovators
in this fishbowl. What would be your hope for
those children growing up right now here in
Houston? What is the most important innovation we
can offer up to the education system to best
serve them? ASD They need to have a safe,
healthy environment to grow, not a disruptive
educational experience where the child is moving
from school to school continuously. We also need
pre-k for all. ZH Human Development Economic
Development Community Development. Its about
access and opportunity - for everyone, not just
our youth, but for adults and the
disenfranchised. GM Our focus has to be on
math and science. Many companies will require
large numbers of people adept in math science,
and our children need to be proficient in those
areas. I believe we need to get to a place where
were comfortable with technology and the
technology space. We still teach according to an
agrarian calendar and as though all have the same
capabilities and learning needs. We need to
educate them as individuals to find their maximum
potentials. KT We need to consider the
possibility that he American comprehensive high
school must be completely blown up. I dont think
it can be done from within it will take outside
sources - It must be leaders like you. We have to
reconsider the sanctity of the four course
subjects. They need to change fundamentally to
reflect our society. We need to have much greater
use of technology. CB Coopetition is the key.
There needs to be choice for students within
public education. We have to find ways we can
work together in public education AND compete. MF
Weve got a major mindset we need to fix. The
river of life for more kids flows downward - not
upstream. Only 7 of Hispanic kids graduate from
college. Were falling farther and farther
behind. We need to change the general publics
belief about what is possible for students from
disadvantaged areas to achieve. Most Americans
dont see education as a crisis, and we must fix
that. People must understand that it will take
time - there are no shortcuts.
Fishbowl Participants Host Scott Van Beck,
Executive Director, Houston A Challenge,
(http//www.houstonaplus.org/) Guests Chris
Barbic, Founding Director, YES Preparatory
Academies, (http//www.yesprep.org) Mike
Feinberg, Co-Founder and President,
KIPP (http//www.kipphouston.org) Algenita Scott
Davis, Executive Director, Habitat for Humanity
(http//www.houstonhabitat.org) Dr. Zach Hodges,
President, Houston Community College Northwest
Gerald McElvy, President, ExxonMobil Foundation
(http//www.exxonmobil.com/) Carol Shattuck,
President, Collaborative for Children
(http//www.initiativesforchildren.org/) Dr.
Kelly Trlica, Assistant Superintendent, Secondary
Curriculum, Instruction, and Assessment, Houston
Independent School District (http//www.houstonisd
  • Dialogue on Human Capital Development

CS 50 of our children less than 1year old
are in the care of others 75 of those of
preschool age are. The formative brain
development happens from 0 - 4 we are missing
the boat with these children. In addition, we
are putting this incredible economic burden on
lower income families. Even if you can afford
it, only 6 of childcare providers are nationally
accredited. Our state standards for accreditation
are very low. We only require 8 hours of
pre-service training for childcare professionals
versus 600 for cosmeticians and over 1,000 for
the person who cuts your hair. Our values are
skewed. The highest return on investment is in
the early years. SVB - It sounds like we know
what to do, so why arent we doing it? ASD
There isn't the common will to re-evaluate common
resources. There needs to be a demand on our
leaders that they focus on education. Were
watching it now with T. Boone Pickens and his
focus on wind energy AARP and Divided We Fail
are trying to do that same kind of awareness
level raising. Can you imagine if we had those
kinds of focus and commercial efforts on
education? CB Thats absolutely right on. The
politics of schools are huge. There is a whole
lot of conversation about contracts, vendors and
jobs, but the agenda of kids rarely gets talked
about. Theres a lack of leadership at all
levels. Until those agendas take a backseat to
kids agendas, it wont change. Get active in the
political process find out whos on your school
board and get involved. CS We have to invest
earlier in the system. If we invested earlier,
wed be saving money. We spend 385 million
nationally on children repeating grades 1, 2 and
3, not to mention what we pay later down the line
in the criminal system. HISD pays 25 million for
kids to repeat. We know that comprehensive
changes will require a funding shift. We have to
say, Lets stop doing this, so that we can do
whats right. MF As a society, we are losing
the war on talent in education. The most talented
people in society arent becoming social
entrepreneurs and educators. How do we make
education sexy so that our young adults want to
go into it? How do we allow them to innovate
without being beaten down? ZH Everyones got an
opinion on this, but not many people are willing
to work on it. Ask yourself how you can
contribute. Dont forget this can happen one
student at a time. You can make an impact through
smaller scale initiatives. This is an important
component of change. KT Teachers have been
systematically left out. We must go to the people
doing the active work and empower them to make
changes. If you look at the Gen Xers and Yers,
they really do want to do something good for
society. Thats what motivates them. We have to
organize a structure to involve them in the
reform. GM - The key question is How doe we
galvanize collective social will to change
education? Think about Sputnik and how it moved
our nation to get a man on the moon. Or, more
recently, Beijing - the opening ceremonies and
the Birds Nest the collective national will
that took. We need a second Sputnik moment.
There are ideas - weve talked about having
people retire early to give back to education.
We must figure out COLLECTIVELY what is our
national mission and purpose. SVB - I wonder
are we hurting enough yet? Maybe we need to hurt
a little more before were motivated to action.
Talk is talk. Were doing a lot of talking here
in the U.S.. They are running in China. There
are more gifted and talented kids in China than
we have kids in total!
  • Dialogue on Human Capital Development
  • At this point, the dialogue was opened up to the
    whole group.
  • It doesnt necessarily take a national mission
    model to affect change like in China. Lets look
    at the consequences of that approach and be
    cautious. America has had a lot of great
    achievements as movements of individuals, not
    always as a national movement.
  • I think this calls for a national concerted
    effort. A great example is the GI bill. We need a
    government led effort to promote education.
  • Q Why cant we use the KIPP or YES models for
  • KT There is no vested interest In pushing for
    radical change by the majority of people. The
    upper-class will continue to choose schools where
    their children will get the best education.
  • SVB We do have a successful collaboration where
    weve put a YES campus in Lee High School. But it
    takes internal agitation by the leaders inside
    the system to accomplish something like that.
  • CB It hasnt been easy. Weve created the
    policies, the system where talk is all about test
    scores and not about the students. Policy changes
    such as score sharing could help create the
    necessary disruptive innovation.
  • We must stop the Yes, buts. There is some
    tipping point out there and we must figure out
    how to arm the inside agitators so we can reach
  • Q When does the business community put to use its
    resources as a lobbying force to speak out that
    we have a problem that must be fixed?
  • GM We are trying and there is a role for the
    business community, but in Texas most of the cost
    is on the taxpayers not on the businesses. The
    ideal would be for a business to focus on
    something small to create an impact on just that.
  • It seems like something like a 10 corporate
    tithe could be a huge help.
  • Q Where do you see the Latino community in the
    future picture of education in this city?
  • CB This is the sleeping giant. The key will be
    what happens when you get a critical mass of
    educated Latinos and if those individuals get
    involved in leadership.
  • We havent attacked the problem of making our
    city bilingual. ESL is another gargantuan problem
    thats very difficult to break.
  • ZH - HCC is making a huge commitment to the
    Hispanic community.
  • CS Hidalgo High School is a great success
    story ranked 11high school in the country. 1)
    They have invested in creation of a full day
    preschool. 2) They are providing dual language
    throughout high school. 3) There is passion for
    looking at career pathing starting in the 6th
    grade. They go down to the Valley and attract the
    best teachers to get teachers who look like the
  • SVB We have to think about how we keep the
    talent once we attract them. Think of offering
    incentive pay to get teachers that look like the
    students in front of the kids.
  • CB - We may have to change the way we think about
    that. The younger generations change jobs three
    or four times in their lives. The 30-year career
    teacher model is old. Look at the Teach for
    America model. We have to consider that its OK
    if people leave teaching after five years, and we
    have to develop a professional track for those
    who want to stay.
  • Q How do you get people with the pocketbook and
    desire to help the ability to do so?

  • Dialogue on Human Capital Development

  • Dialogue on Human Capital Development

CHF Fall 2008 Business and Civic Leadership Forum
Session I September 4 - 6, 2008 Page 21
  • Dialogue on Human Capital Development

CHF Fall 2008 Business and Civic Leadership Forum
Session I September 4 - 6, 2008 Page 22
  • Dialogue Economic Development

After a break for lunch, we dove into our
fishbowl dialogue on our regions path to
sustained and diversified economic development.
The guests represented a range of sectors
essential to our economic success and vitality in
the 21st Century. Host George Martinez began the
dialogue by asking the question Over the next 20
years what do you see for us as a region?.
DW W have to see the mobilization of
intellectual, financial and physical resources to
bring new business and industries to Houston and
create more employment opportunities. Its clear
that we need to continue to diversify. The key
to our future is diversification of our
economy. JG -Everyone is looking at the high
price of gas and people are becoming more
interested in mass transportation. We need to
develop a more comprehensive transportation
system that will support us and our growth. In
real estate development, were seeing a
tightening of the market, but weve been much
better off than many around the country. Now
were beginning to see problems finishing
projects. Well see less development of single
family properties in the suburbs. Were getting
a huge knee jerk reaction from the regulatory
markets. Well see a conservative move on the
part of lenders both residentially and
commercially. Well have to deal with the glut
in the market. GM - There are many forces
impacting our future. What do you consider the
strengths and vulnerabilities of the region? DW
The Greater Houston Partnership is changing from
being an advocacy organization to being the
economic development agent for the region. GHP
has launched Opportunity Houston whose goal is
to create 600,000 new jobs in the region over the
next decade. Houston is the home of 23 fortune
500 companies - second only to New York - and we
have the second largest port in the county, but
we face some challenges. There are five business
sectors we need to focus on 1. Oil Energy
preserving what we have and growing new
alternative forms. We need to work hard to
preserve our title as the energy capital of the
world. 2. Aerospace its vulnerable today
because Texas doesnt have a single
representative in Congress to protect the Johnson
Space Center from moving.
Fishbowl Participants Host George Martinez,
Chairman, Center for Houstons Future, CEO,
Allegiance Bank, LLC Guests John Guess,
President, The Guess Group (http//guessgroup.net)
Jacqueline Northcut, President and CEO,
BioHouston (http//www.biohouston.org) Dr. Osama
Mikhail, Sr. Vice President, Strategic Planning
UT Health Science Center (http//www.uthouston.edu
) Dan Seal, Executive Director, Technology
Programs, Bay Area Houston Economic
Partnership (http//bayareahouston.com) Michael
Skelly, US Congressional Candidate, 7th District
of Texas, former Chief Development Officer,
Horizon Wind Energy(http//skellyforcongress.com)
Dan Wolterman, CEO, Memorial Hermann Health
System (http//www.memorialhermann.org) and
Chairman of the Board, Greater Houston
Partnership (http//www.houston.org)
  • Dialogue on Economic Development

3. Healthcare in the Texas Medical Center there
are 46 separate institutions. Our central
challenge is to move to a collaborative model.
Houston needs to be the epicenter for
Biotech/Life sciences. Often the research that is
created here gets taken elsewhere once the
technology is developed and ready for
commercialization. We need to change that, and
thats what Jacqueline and her organization,
BioHouston, are working on. 4. IT 5.
Nanotechnology how do we preserve our place as
the Nano capital of the world? The late Dr. Rick
Smalley at Rice University invented the
Buckeyball and received the Nobel Prize for it.
We now have the Smalley Institute at Rice that
continues this work. DW cont. There are several
key challenges we must address. 1. Diversity and
Demographics we havent yet figured out how to
take the diversity of our region and make it a
strength. 2. Education we have to do a better
job of educating our young children and preparing
them to come into a global economy. We need a
tier one public university. Rice is a great tier
one school, but it only enrolls about 5,000
students a year. We need to increase that
capacity tremendously. Think about how many first
class universities exist in Boston or the Silicon
Valley area. Businesses arent going to want to
come to or remain in Houston if we cant develop
the talent they need here. 3. Regional
Collaboration We have to find a way to get the
region to pull together to work in the direction
of focused economic development. GM - What can we
expect in the areas of renewable energy resources
and how it will affect our need for oil? MS
There are 15-20 billion in capital investments
in renewable energy per year, and well see it go
to30 - 50 billion. This is a very
entrepreneurial city, but were missing a venture
capital community. The biggest VC shop in Silicon
Valley is putting 60 of their investments into
renewables. JN Bio and life sciences are in
their infancy globally, not just in Houston.
Predicted to be a real major industry for our
nation and global community. 99 of the research
comes out of the universities research
institutions Texas ranks 3rd and about 2/3 of
that happens in the Houston area. Were trying to
take the benefits of that research and convert
them into products that can be sold and save and
improve lives. Houston has the basic research
that most other cities dont have. We dont have
the talent thats needed, like experience with
FDA regulations. We have to import that talent.
We have to turn the good ideas into venture
capital ready companies. Venture capitalists are
risk averse and want everything to be perfect.
But they are now coming to Houston. The Emerging
Technology Fund was created by Gov. Perry 3
billion invested over the next three years. It
should generate a New York Times article over the
next few years saying this is the place to build
oncology businesses. GM - Healthcare was the
only industry that grew over the past 8 months.
What can we expect as far as the growth of
healthcare in the future? OM We are fortunate
here because we have great population growth.
But, if you dont have the right payer mix within
that population, that wont matter. We are
dependant on the misfortune of others. There is a
growing change in the perception of healthcare.
There is a change happening in healthcare from
treatment to prevention. We really need to think
more about how we improve quality of life and
improve the health of the workforce.
  • Dialogue on Economic Development

There is 5 7 billion in new investment in the
Medical Center in the next few years,150,000
people will be employed there. But regionally
people dont want to come down here because its
so congested. We need the emergence of these
edge community hospitals that can serve people
near where they live. Today the TMC is unique,
but the Chinese want to emulate it and build one
three times as large on the Shanghai Delta.
Medical tourism is growing where people want to
go get treated in nice places. More and more
people are going overseas for services and
procedures. DW The growth in healthcare is
amazing but its vulnerable. 31 of the Houston
population is uninsured. The cost of healthcare
in Houston is greater than any where else -
2,200 more per employee. So companies are simply
not offering insurance. The direction this
country goes in the next four years will either
help healthcare be a boom or a noose for Houston.
We confuse healthcare with hospital care. There
is no payment for prevention and wellness unlike
in most other countries which pay to keep illness
down. Technology is driving people out of
hospitals into outpatient and home care. JG - We
must focus on creating the kind of environment
that people want to live and work and play. We
must have a comprehensive plan. Weve lacked a
real roadmap to mange the growth. At this
point, the dialogue was opened up to the whole
group. Q - How do we deal with the1.5 million
uninsured in Houston? This will bankrupt every
healthcare institution. We need to cut out
administrative overhead. Also quality is abysmal.
Our health outcomes are about 38th best in the
world despite how much we spend as a nation on
healthcare. We need to do three things 1. Make
people personally responsible for their health.
2. Change the system to incent people on health
and wellness. 3. If we start with access there
is one fact that there are not enough healthcare
workers to take care of the pent up demand.
Funnel has been insurance. Without that it cant
be done. America cannot compete in a global
economy with the cost of Healthcare. Q - How are
we doing around regional collaboration? DW
Were trying to reach out. The key is how do we
work collaboratively on quality of life? We also
need to have More collaboration around
infrastructure the Port, airport, railroads.
Mass transit will be one of those areas we need
to collaborate to get communities like the
Woodlands connected. DS We have every reason
to be very optimistic. Texas is as competitive
as any state in the union now in marketing
itself. We have a lot of townships and
municipalities in the Houston area, but two years
ago we came together to form the Houston Region
Economic Alliance (only two others in country).
Were allying to market the region and share
best practices. I cant think of a place more
poised for regional success.
  • Dialogue on Economic Development

  • Dialogue on Economic Development

CHF Fall 2008 Business and Civic Leadership Forum
Session I September 4 - 6, 2008 Page 27
  • Dialogue on Economic Development

CHF Fall 2008 Business and Civic Leadership Forum
Session I September 4 - 6, 2008 Page 28
  • Key Issues Human Capital Development

After our second fishbowl dialogue, Margaret
asked us to type into the laptops what we felt
were the key issues in the areas of Education and
Human Capital Development and Economic
Education and Human Capital Development Key
Issues 1. As an insider at HISD, my perspective
is that we sustain a culture where competence is
punished. A recently Dell funded initiative,
Performance Management, is being implemented
without viable sustainability, which is most
disappointing because adopting genuine
accountability in a system where competence is
punished instead of rewarded has awesome
potential to change HISD's stagnant culture...but
fear is steering the ship off course. 2. Houston
has biggest number of Fortune 500 Companies
outside NYC Let us convince them to put their
formidable influence behind education reform. It
is in their economic interests and in the
interest of our nation. 3. An investment in
early education should be promoted and made as it
will easily be paid for in the long term 4.
education solutions are not insurmountable, but
require more individual action and community
collaboration 5. how do we get companies to
collaborate around education among themselves to
solve problems 6. most people don't know what
they don't know about the education challenges.
7. Solutions for education appear to available,
but community is in denial. 8. thought provoking
comment made about the scalability of charter
schools...100 isn't required, just enough to
motivate change (FedEX/USPS analogy) 9. How can
we encourage change in the school system? 10. Key
to continued success in the Houston area will
require a state of the union public school
system. 11. Strong ties between home ownership,
students moving/stability and academic
performance. 12. there seems to be little
recognized connection between education
performance and economic development
achievements 13. Finding and maintaining the
leadership that has WILL to promote change 14.
The more we talked, the less certain I became
that we had a handle on the true root causes for
the adverse outcomes we are seeing in primary and
secondary education. 15. Who needs to be
responsible for making investment in education
system? 16. The business community can raise 40
million for marketing, but can not come together
for education. 17. Funding and supporting school
choice and incentive based programs such as KIPP
and YES Academy until they are so big that they
can no longer be ignored seems to be the best way
to disrupt the existing educational
bureaucracy. 18. Education is one of the few
remaining industries that still has the paradigm
of education as a career - not job. Most of us
have changed careers multiple times - is it time
for education to shift as well? 19. Educating the
community so that it becomes engaged and involved
in being part of positive and effective
change 20. Until Corporate America buys into
education reform, we get nowhere. Business
should connect a future inadequate workface with
education reform and earmark 10 of its PR.
Lobbying / Advocacy budget to influence elected
leaders to address challenges 21. Realization
that HISD will not provide foundational changes
from within due to self preservation of
staff. 22. There appears to be widespread
agreement on the major issues but how do we get
the community -- leaders in education, health
care, regional planning, etc -- to WALK rather
than just TALK? 23. Any industry that punishes
excellence will fail. We have to break and
remake education 24. Building a community that is
the best n the nation for pubic education and
higher education will create a more educated and
talent pool for companies to employ. 25. Why is
Texas at the bottom of the funding scale per
student? Do we have less resources or are we
spending them elsewhere compared to other
states? 26. How do you get the rich/wealthy who
might not be personally impacted by the quality
of HISD to invest in improving HISD? 27. We all
agree the healthcare system is broken. When will
we address it and reform it? 28. I believe that
more focus must be placed on business and
education working together in a more positive
manner to prepare students and their communities
for new technology world opportunities 29. Since
we have a high drop out rate within the high
school system, what programs can be created to
re-engage these students and get them into post
high school educational programs to support our
economic development 30. Clearly more people need
to know about the importance of an early
childhood education 31. We have avoided talking
about the issue of family strength's influence on
education outcomes. How do we reach the kids who
live in dysfunctional family environments. I
suspect that a large percentage of poor education
outcomes come from this segment
  • Key Issues Human Capital Development

32. I came away convinced that there needs to be
broad scale attention and resources devoted to
preschool education for children in that middle
zone who can't afford preschool and don't qualify
for pre-K programs for the disadvantaged. 33.
Public school systems should consider different
method of finding teachers, such as use of
industry personnel for short term periods. 34.
Let's create forums for cross-sector dialogue and
problem solving - local, state and federal
elected officials from the region must be joined
by business and non-profit leaders at the
table. 35. GHP Chair says "Today, there is no
effective forum" to address Q of L
challenges--transportation, education, health
care, air quality, etc. We should challenge
civic, business and elected leadership to come to
table to get serious about addressing challenges
for good of individual and region 36. How do we
better educate the population about preventative
health and wellness behaviors to limit costs in
healthcare? 37. how can we justify a "college
going culture" when the perception of government
is that higher education is no longer a public
good, but rather a private benefit, placing the
primary responsibility for the costs on the back
of the consumer who is increasingly less able to
pay for that "benefit" 38. In addition to
strategic focuses, tactical applications should
be undertaken which incorporate a partnership
between business and the education community. 39.
The Hidalgo school district example (and others)
given this morning seemed to confirm that the
issue is not that there are too little dollars
invested, but that the system for using those
resources is fundamentally flawed. 40. Business
and non-profit leaders must take the place of
absent parents in thawing out the frozen
bureaucracy of HISD. 41. I think the question
still remains how do we go about executing what
was discussed in each Fishbowl? 42. How can we
create Critical, Mass Awareness about the
importance of positive change in HISD? 43. Early
childhood education must be a major priority. 44.
Are we really a low tax country? When you
aggregate the cost of healthcare and education
born by the individuals, are we really better
off? 45. glad to hear discussion about the
elephant in the room some believe all children
are not created equal 46. One of the things that
stuck out to me was the connection between
immigration, education, and labor. I often heard
that companies have to go out and search for
foreign labor because they couldn't find the
workers. Yet there is a tremendous supply of
workers in Houston - namely, undocumented
students. These students take it upon themselves
to finance their education (they are not eligible
for federal aid), and upon their graduation are
ineligible to work. How inefficient! The
community invests in their education through
grade school, they spend a considerable amount of
money seeking higher education, and then are
denied jobs because of their legal status - which
is often a result of someone else's decision. 47.
Education of parents must also be a priority as
their pre-school children are educated. 48. Early
childhood education may continue to be neglected
as long as that age group is not part of the
high-stakes testing on which the fed/state
accountability systems are based 49. A fair
amount of discussion has been focused on the
Hispanic population, what about the
African-American community? undoubtedly another
significant population in Houston. 50. Sad to
know that some do not realize that wealth alone
doesn't insulate you from inferior quality of
life when it comes to services 51. Initiate
effort to secure corporate support for 10 of
lobbying budgets to go to education reform as
business understands connection between adequate
workforce and education. 52. I would like to
challenge the notion that the KIPPs and YESs are
the answer to solving education woes. Why not
take the talent and leadership that supports
those entities and incorporate them into the
existing public education system? 53. while
college is important, skilled labor is too.
tried to get any services done lately? 54. Why
not have a Fishbowl discussion with HISD Central
Office? 55. Let's create a simplified health care
reimbursement system that pushes the
responsibility for payment of the health care
provider back to the patient as well as
responsibility for seeking reimbursement. This
should be coupled to an online system for
picking insurers and provider networks that
includes stats on outcomes and quality of
care. 56. Teachers must be empowered and not
micromanaged 57. One thing that seems to be
missing from both discussion is how the legal and
criminal justice system impacts both education
and economic vitality. 58. We have not discussed
the Balkanization of Houston, the first signs of
which are showing up, particularly in
transitional neighborhoods - racial and/or ethnic
groups blaming their problems on the "other." 59.
Houston used to sell itself as a low cost
business center. It is now a median cost center.
So what will we do to attract new business?
Perhaps quality of life issues like - mass
transit, green space, education, arts, etc?
  • Key Issues Economic Development

1. Is healthcare a business or a social
obligation? We need to address as a community 2.
Collaboration between the regional
municipalities, cities and counties will be key
to overall infrastructure solutions 3. thought
provoking comment made about ACCESS being the end
not the beginning...appreciated this
perspective 4. We will continue to need the
entrepreneurial spirit to ignite our future
growth 5. So many of the challenges facing our
region must be addressed at a policy level and by
our elected officials and we, quite simply,
don't have the caliber of leaders we need to
effectively address these issues. 6. The medical
center is 46/47 different institutions - when
will they consolidate? 7. I had no idea that
Houston had such a presence and competitive
reputation in bio and nanotechnology 8.
Interesting statistic about less than 10 of an
efficient organization being dedicated to
"administrative overhead" 9. Is there sufficient
collaboration among the different area
municipalities to facilitate the proper expansion
of our light rail and transportation system? 10.
It is encouraging to know about "Opportunity
Houston"...this could spawn additional programs
like this 11. What is being done to share this
info with other business people? Been here 20
plus years. Need a call to action. 12.
Successful regional cooperation is a critical
part of our future success but we're stumbling
here and don't have any real solutions to more
effectively address this issue. Another example
of a failure of political leadership... 13. How
do we get to educating high level science such as
nanotechnology to prepare the future workforce
when we are having difficulty teaching basic
science and math? 14. Pressure on banks lending
criteria is affecting development profoundly. 15.
What is Texas and the city of Houston doing to
provide tax and economic incentives to our
must-keep industries, such as energy and
biotech? 16. Who is going to pay for the money
needed to improve Houston's image/quality of life
when it benefits all but doesn't
specifically/immediately benefit particular
people/organizations? 17. Isn't there a way
business can collaborate with education other
than writing by a check? 18. How do we enhance
the initial reaction people get of Houston when
they travel from our airports to
downtown/Galleria etc.? 19. The medical community
has so many entrenched problems that it must
attack itself, such as waste and inefficiency--it
would make so many other things possible, such as
lowering costs for uninsured people and the rest
of us. 20. Demise of Enron created opportunity
for entrepreneurial ventures remaining in
Houston. 21. Texas has a long history of
individualism -- particularly Houston. How can we
merge our individualism with a wider regional
view among elected officials and voters? 22. 31
uninsured in Houston is astounding statistic. 23.
As we are creating new jobs, how to we insure
that the educational system is prepared to supply
the skilled resources needed for those jobs? 24.
How do we get the community to buy in to a mass
transit system when it helps the city but causes
resistance by specific landowners? There aren't
too many cities that are successful that don't
have one. 25. "Healthcare is the hidden tax". 26.
Better universities would be a big draw to this
region but that type of building progress takes a
very long time. 27. Will we EVER get zoning? 28.
Universal access to healthcare cannot be
sustained by current healthcare
staff/facilities. 29. Building on a historical
theme for Houston, what are the four or five
principles of 'enlightened self interest' that
every business and civic leader in our community
should know, upon which we can build our
solutions? 30. UH needs Tier 1 status! 31. Who is
going to pay for all the infrastructure
improvements that have been discussed today? 32.
Can we get a organization set up that solicit
funds solely for the purpose of improving
Houston's image? 33. We need to make sure the
next Mayor has the same long term vision for
improving the image of Houston 34. Focus more on
prevention than disease/ cure 35. Houston has
plenty of greenbelt and oasis in the downtown
area, we need to better utilize and show off to
visitors 36. We need to protect the aerospace
industry. 37. How do we best attract VCs and
businesses to Houston?
  • Key Driving Forces

Next, we explored the driving forces that we
believe will impact Houston the most over the
next ten years. We broke into small groups to
identify driving forces emanating from within the
city, region, state, U.S., and finally from the
global environment. Each team presented their
analysis, and the results were combined on the
chart below.
  • Immigration policy
  • Energy policy
  • Healthcare reform
  • Weak Dollar
  • Weak Economy
  • Education policies and funding
  • Federal deficit
  • Shifting balance between population and power
  • NASA
  • China, India, Russia other emerging markets
  • Energy resources
  • Lack of prepared political leaders
  • Tax policies
  • The Port of Houston
  • Quality of Life
  • Infrastructure
  • Perceptions of the USA
  • Disparity between insured uninsured
  • Strong individual civic leaders
  • Economy
  • Shifting demographics
  • Trade imbalance
  • Air quality
  • Oil production
  • Competition for skilled forces
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