The Joint Venture Way: Lessons FOR REGIONAL REJUVENATION VOLUME 2 Joint Venture: Silicon Valley Network Joint Venture: Silicon Valley Network Designed and Produced by Jacobs Fulton Design Group Printed on recycled paper Joint Venture Acknowledgements Joint Venture was created in 1992 as a dynamic new model of regional rejuvenation. Its vision was to create a community collaborating to compete globally. Joint Venture brought people together from business, SPECIAL THANKS government, education and the community to act on regional issues To the James Irvine Family Foundation and the Morgan Family affecting economic vitality and the quality of life. Foundation for funding this extension to the original “Lessons.” PREPARED BY Phil Turner Board of Directors Jacobs Fulton Design Group As of December, 1998 CONTRIBUTORS Ruben Barrales Co-Chairpersons Tim Cuneo Mayor Susan Hammer City of San Jose Jane Decker Carol Gray Lew Platt Chairman, President & CEO, Hewlett-Packard Co. Susan Hammer Doug Henton Becky Morgan Sharon Huntsman President / CEO Bob Kraiss Connie Martinez John Melville Hon. Ruben Barrales W. Keith Kennedy San Mateo County Supervisor Watkins-Johnson Company Becky Morgan Michael Simkins Carol Bartz Paul Locatelli Autodesk Santa Clara University Glenn Toney Kim Walesh Robert L. Caret Mayor Judy Nadler San Jose State University Santa Clara Robert Cavigli John Neece Erlich-Rominger Architects Building & Construction Trades Council Leo E. Chavez Joseph Parisi Foothill-DeAnza Community Colleges Therma Jim Deichen J. Michael Patterson Bank of America PriceWaterhouseCoopers Charles M. Dostal, Jr. Condoleezza Rice Woodside Asset Management, Inc. Stanford University Katheryn M. Fong Hon. S. Joseph Simitian Pacific Gas & Electric Santa Clara County Supervisor Carl Guardino Steven J. Tedesco Santa Clara Valley Manufacturing Group San Jose Metropolitan Chamber of Commerce S. Reid Gustafson Hon. John Vasconcellos Shea Homes California State Assembly Chester Wang Judith H. Hamilton Pacific Rim Financial Corporation Data Quest Colleen B. Wilcox Jay Harris Santa Clara County Office of Education San Jose Mercury News Mark G. Hyde Lifeguard, Inc. Foreword The region in Northern California known as “Silicon Valley” shares many characteristics with other regions in the United States and around the world. Traditional boundaries that define towns and cities and separate the public and private sectors break systemic economic and quality of life problems into arbitrary fragments. City and county governments, large and small businesses and state governments are regularly frustrated trying to solve problems whose causes and consequences extend beyond their borders or jurisdictions. People within these regions peer out at the world from within their homes, businesses or communities and wonder at the ineffectiveness of existing institutions and established leaders to solve obvious problems. In 1992, leaders in the Valley began to recognize that existing insti- tutions and approaches to complex and economically debilitating trends were not working. A leap to a new set of assumptions and new solutions would be necessary if the Valley was to regain its footing and return to leadership and prosperity. In particular, the barriers between government and business would have to be bridged in new and productive ways. If business were to participate in addressing broader economic and social issues, it would have to participate with government as both a learner and a productive contributor. In fact, the Region would have to be redefined as a larger community with common problems and common goals. The Valley would have to learn by experimentation, including the occasional failure, and would have to invest in a vision that assumed interdependencies among business, government, labor and educational institutions. Finally, the Silicon Valley Region would have to recognize that quality of life issues and the economy rose or fell together. The Joint Venture Way, Volume 1, tells the story of a region coming together as a single community and taking responsibility for addressing and solving its own problems. Volume 2 extends that story. Joint Venture: Silicon Valley Network contributed in important ways to a newly vibrant and prosperous Valley. Joint Venture, the organization, experimented with and pioneered approaches to regional problem solving from which much can be learned. By extending this story an additional three years, from 1995 through the end of 1998, a more complete picture emerges of this unusual effort. The Joint Venture Way: Lessons for Regional Rejuvenation Vol. 2 Forward Results achieved by Joint Venture ranged from visible and tangible improvements to intangible but profound changes in thinking and approaches to problem solving. The 21st Century Education Initiative improved the achievements of thousands of school children in math, read- ing, writing and science while fundamentally affecting the perceptions of business and school leaders about how to work together to change the com- plicated and entrenched public school system. Regulatory Streamlining, another initiative, unified the building code across the cities in the Valley and not only streamlined but used technology to radically reinvent the permitting process. The business and city government leaders involved in this initiative discovered that through trust and collaboration they could dramatically improve systems that they had viewed as unchangeable. The Silicon Valley Economic Development Team brought together business leaders and economic development directors from the cities to affect, as a region, decisions made by business organizations to relocate or remain and expand in Silicon Valley. A perception grew among this group that encouraging a business to locate or remain within one city in the region was a victory for every city. Perhaps the most profound change, for which Joint Venture can take significant credit, is the realignment of people’s understanding of where they live. Silicon Valley, “the region,” has moved to the forefront as an entity that defines an understandable and significant geography. For many people, the region is understood as a more important entity than either the state or their home towns in influencing issues that strongly affect their lives — education, commuting, housing, economic vitality, etc. By adopting a regional perspective, exclusively, by frequently and regularly convening initiatives and other working groups and by engaging the most visible leaders in addressing regional issues, Joint Venture changed people’s “minds.” We, in the Valley, have learned much from other regions and other experiments. We hope that other regions can benefit from the lessons docu- mented in the pages that follow. Creating an extra-jurisdictional, collaborative forum for addressing regional problems is both challenging and satisfying work. The Joint Venture experience would suggest that creating collaborative processes for addressing regional issues is likely to be a necessary element of any region’s progress towards community and sustainable prosperity. The Joint Venture Way: Lessons for Regional Rejuvenation Vol. 2 Forward USER GUIDE How to Read This Document This document extends the original Lessons, published in 1995 and covering the period 1992 to 1995 by three years — to the end of 1998. Much of the background and history of Joint Venture is covered in the original report. Details about structure, governance and budget are also available in Lessons I. Because the lessons themselves were somewhat prelim- inary in that first document, our purpose here is to extend and update the lessons learned from Joint Venture as a result of the additional three years experience. The two “Lessons” documents should be used as a set so we have tried to avoid duplicating information here that was available in Lessons I. Lessons II is organized as follows: Part 1 The Joint Venture Way pg 1 This section provides a brief synopsis of the Joint Venture Way, brings the history up-to-date, and describes the models that influenced its work. Part 2 The Lessons of Joint Venture: Silicon Valley Network pg 11 This section summarizes the lessons learned from the experience of Joint Venture as of December, 1998. They are organized in three sections: Charter, Managing Principals and Renewal. Part 3 Chartering the Regional Collaborative pg 15 With the benefit of hindsight, this section examines lessons relevant to the chartering of a regional collaborative. Part 4 Managing the Regional Collaborative pg 23 This section recasts and extends the lessons from Volume I that were learned from operating Joint Venture. Continued Next Page The Joint Venture Way: Lessons for Regional Rejuvenation Vol. 2 User Guide USER GUIDE How to Read This Document Continued Part 5 Renewing the Regional Collaborative pg 37 As of the writing of Lessons I in 1995, Joint Venture was three years old and the need for renewal was just becoming visible. This section explores both the need for renewal that emerged, how it became visible and Joint Ventures response to the need — Silicon Valley 2010. Appendix 1 The Initiatives — Origins and Status pg 45 Includes brief descriptions of purpose, accomplishments, and status as of the end of 1998. Appendix 2 Three Case Studies pg 49 This section utilizes the stories of three of the initiatives, 21st Century Education, the Economic Development Team, and Regulatory Streamlin- ing, to illustrate the models and principles described above. Appendix 3 Joint Venture’s Vision, Mission, Core pg 55 Values and