A University-Based Organizational Platform to Leverage Regional Economic Development

Over a half century ago Edwards Deming demonstrated that systems engineering concepts can be applied to any business or service enterprise. This paper critically reviews the engagement of an industrial engineering department in the design, development, and implementation of an integrated systems approach to administering regional economic development in the Upper Cumberland. The implementation was based on Deming’s System of Profound Knowledge, the Appalachian Regional Commission definitions of Program Areas, and the Morrill Land Grant Act of 1862 with an expanded definition of economic development. A cohort of industrial engineering seniors were instrumental in the design and development of the system. Similar to an AmeriCorps VISTA engagement, a characterization of the student perspective is the opportunity to strengthen an organization so it can continue to serve the needs of the community after the project has ended. The system includes an organizational platform, a strategic planning process based on quantitative measures of regional employment, and a methodology for prioritizing regional economic development activities. University engagement enables the region to leverage analytical capability and provides Deming’s Constancy of Purpose to regional economic development. I. Regional Profile The Upper Cumberland is at the intersection of the Central Basin, the Eastern Highland Rim and the Cumberland Plateau. As shown in Figure 1, the Upper Cumberland is centrally located the between metropolitan areas of Nashville, Knoxville, and Chattanooga. Interstate 40, one of the nation’s most highly traveled arteries, provides regional access to the national interstate system. Economic needs in the Upper Cumberland include developing infrastructure in remote rural areas; recruiting new companies; supporting and expanding current businesses and industries; improving K-12 educational infrastructure for a diverse economy; and developing a regional “brand identity” to leverage regional economic development activities. Strategic impediments to regional economic development include resources to address needs that have varying levels of complexity that are the result of subtle variations between jurisdictions within the region and sufficient technical support to prioritize regional needs. Economic development stakeholders in the region are represented primarily by the local chambers of commerce and elected officials. The Upper Cumberland Development District (UCDD) and Upper Cumberland Human Resources Agency (UCHRA) have designated state and federal legal authority for coordinating regional development. Important funding sources for Figure 1: Upper Cumberland Region regional economic development include the Appalachian Regional Commission (ARC) which partners with the Tennessee Department of Economic and Community Development (ECD) to assist with administering ARC’s economic development activities in the Upper Cumberland. Higher education for U.S. citizens of average means may be linked directly to the history of land grant colleges. The land grant system was created by the Morrill Act of 1862 that gave states public land to establish a college that taught agriculture and the mechanical arts. One hundred and fifty years later and with a broader definition of economic development, industrial engineering degree programs in regional universities are an ideal platform to support rural development. The remainder of this paper describes a collaborative effort between TTU industrial engineering department and constituents of Upper Cumberland regional development to support objectives of the Morrill Act. II. Regional Economic Development Environment Tennessee Tech University (TTU) received funding in 2011 for an Appalachian Regional Commission (ARC) project to enhance the economic development infrastructure in the Upper Cumberland Region. The grant placed special emphasis on assistance for At-Risk and Distressed counties. In addition to subprojects, the grant supported the design, development, and proof of capability of an organizational platform and processes for administering regional economic development. Project goals were to: 1. Establish a culture of support for regional economic development within the University. 2. Create and nurture economic development partnerships between the University and the region. 3. Encourage faculty to develop economic development internship opportunities and related coursework for students. 4. Pursue funding that enables faculty to support regional economic development. TTU, as a stakeholder in regional development, established Tech-REDI (Regional Economic Development Institute). The Tech-REDI mission was: To leverage University resources that can facilitate efforts of federal, state, and local governments, as well as private industry, to enhance the economic environment in the Upper Cumberland.