The Main Thing:

I walked into a restaurant the other day, and as I was waiting to be seated, I looked across the dining room to see several couples and groups of people at their tables. I don't know how many people were in the room, but there weren't many open tables.

The place was a "diner" type of restaurant—you know, the kind that serves breakfast all day and has a hundred items on the menu. So, the clientele was a mix of old and young. The diners were a good demographic mix.

My guess is that at least 70% of them were looking at their 'smartphones.' I find that disconcerting. Does it bother you?

Maybe you have been that person who sits down and automatically reaches for their phone to see anything. Perhaps you have been in the line at the DMV or waiting for your doctor's appointment and need to be "not bored." Hooray—we have something in our hands to entertain us!

On those occasions when we have to wait for an appointment or are tired of counting ceiling tiles, the phone and all the entertainment and news it has to offer are a welcome relief
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The sad thing about this device and how we use it is that it is killing our ability to think, lead, reason, and function as human beings.
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​Read more about this malady here.​

Focus on AI

​Where Humans Still Have the Edge on AI by Marc Zao-Sanders | Harvard Business Review

In an era where AI seems to be mastering everything from chess to language translation, a surprising truth emerges: our most "human" qualities may be our most significant technological advantage. While generative AI excels at processing vast amounts of data and generating instant outputs, four distinctly human capabilities remain our competitive moat - emotional intelligence, handling complexity, physical presence, and authentic creativity. This Harvard Business Review piece explores why these uniquely human traits aren't just surviving the AI revolution - they're becoming more valuable than ever.

Why this matters: Economic development leaders must adopt a more nuanced approach to long-term planning. instead of approaching AI adoption as a binary choice between human workers and automation, economic developers and community leaders can plan for integrated programming where human skills and AI capabilities complement each other. Could an innovation district that supports this type of activity be possible? Maybe incentive programs that reward businesses for effectively combining human and AI capabilities should be considered.

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​LLM on a Budget: How Small Cities Are Leveraging AI by Nikki Davidson | Government Technology

Meet Clive, the green alien revolutionizing how small cities approach economic development. In Covington, Kentucky, this quirky digital assistant isn't just answering questions about zoning and business permits - it's demonstrating how smaller communities can leverage advanced AI technology without breaking the bank. This innovative approach to government service shows that embracing artificial intelligence isn't just for major metropolitan areas anymore. At less than $200 a year, Clive proves that even small cities can think big regarding technological innovation.

Why this matters: This case study demonstrates a significant shift in how smaller communities can access advanced technology. The article reveals that sophisticated AI tools are becoming accessible to smaller economic development offices at surprisingly affordable prices. Using AI has several important impacts, including the ability to provide 24/7 service without increasing staffing costs, consistent delivery of accurate information about zoning, permits, and incentives, and creating a unique brand identity that sets the community apart. Success requires a strategic approach to implementation, focusing on immediate service improvements and long-term community benefits.

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​California city taps AI to streamline government hiring by Kaitlyn Levinson | Route Fifty

In Long Beach, California, where one in five government positions sit empty, and hiring can take up to nine months, an AI solution named Holly transforms how cities approach public sector hiring. The program isn't just another recruitment tool - it's an intelligent platform that analyzes more than 45,000 local jobs to optimize everything from salary recommendations to job descriptions. Cities nationwide are dealing with hiring processes that routinely stretch beyond 100 days and vacancy rates reaching as high as 35% in some departments. Long Beach's experiment with AI-driven hiring is a blueprint for solving one of the public sector's most pressing challenges. This six-month pilot program, running through April, could significantly change how local governments attract and retain the talent they need in their communities.

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​Why this Matters: Hiring is not just a challenge, but a critical and urgent issue facing economic development organizations. Having an adequate staffing level is important as it directly impacts an ED organization's ability to deliver services to prospects and existing businesses. This staffing crisis has several cascading effects on economic development, including response times to business inquiries, which can significantly impact a region's economic competitiveness and ability to attract and retain businesses.

Other Articles of Interest this week:

Economic Development -- Adaptive reuse breathes new life into abandoned schools by Amanda Loudin | SmartCitiesDive -- Repurposed school buildings are home to a variety of groups, including artisans, local governments and restaurants. But funding and getting public buy-in for these projects isn’t always easy.

Green Economy -- How Climate Change Is Complicating a Beloved Midwest Pastime: Ice Fishing by Kristoffer Tigue | Inside Climate News -- Wide temperature swings in Wisconsin and Minnesota have delayed the formation of ice thick enough to support anglers and other outdoor recreationists.

Leadership-- How the Lego Group Built Culture Change: From the Ground Up by Donald Sull and Charles Sull | MIT Sloan Management Review -- The Lego Group took a grassroots approach to defining leadership behaviors that would help the company execute a new business strategy. Chief people officer Loren Shuster shares lessons for success.

Technology -- These two men will lead transportation policy in the Trump administration by Dan Zukowski | SmartCitiesDive -- While transportation policy emphasis is likely to shift, observers say, there may be more bipartisanship than expected.

Mentoring-- Building careers and changing lives: A decade of impact with Generation by McKinsey Blog -- December 18, 2024 Ten years ago, McKinsey created the nonprofit Generation with a simple yet bold mission: to train and prepare adults for lasting, meaningful careers.

Can it Happen Here?

I worked in a community with a University as one of its major employers. Normal, Illinois, is home to​ Illinois State University​, which has over 20,000 students (it’s also my undergraduate alma mater). I enjoyed working and living in a University town.

Economic development in a university town has distinct advantages. There is always a lot of eager talent needing intern positions, and recruiting from the university for entry-level positions is a plus. One of my best employees came to us originally as a graduate-level intern and stayed after getting his degree.

The “Town and Gown” relationship can be tenuous and have potential pitfalls. With its many nuances, the university's decision-making process could sometimes lead to decisions that impacted the local economic development program. It's important to be aware of and carefully navigate these pitfalls.

While Illinois State University is large, it is not as big as a Big Ten University like the University of Illinois, located down the road in Champaign-Urbana (55,000+ students). The University of Illinois is home to world-class research and education.

However, smaller communities, such as Aurora, New York, highlighted in “When Gown Leaves Town,” have also benefited from a university or college presence.

But as you will read in the article, not all is well in Aurora. Wells College has closed, leaving this small picturesque town on one of the New York Finger Lakes wondering if they can survive.

This dilemma is not unlike that of a large manufacturer or company closing and leaving the community. There are distinct similarities, and there are lessons to be learned.

Read this fascinating article and learn more about the town-gown relationship in a small upstate New York town. Then, ask yourself, can it happen in my community? If so, I hope you learn from Aurora’s experience.

Overheard :

“Cauliflower is nothing but cabbage with a college education.”

Mark Twain

AI Webinar

I am working with people smarter than me to create an AI webinar.

The working title is “AI Applications for Economic Developers” or “Practical Ideas for Using AI in Economic Development.”

Who is interested?

If this is a webinar that you think would be helpful to you, answer the poll below:

Rabbit Hole:

An Icy Reception

Do you like Italian Shaved Ice or the American State Fair version, Slushees? I have always fought against the idea that someone would pay money for a mound of ice with surgery syrup poured over it.

Some people would laugh at me and my snobby approach to the type of ice I like in a Manhattan. I am not an 'up' cocktail person. For those unfamiliar, an 'up 'cocktail is a drink typically stirred or shaken with ice and then strained into a glass without ice. It's often served in a tulip glass. On the other hand, I like ice in my drink, preferably a 'rock.'

To settle any arguments about how your cocktail should be served, this article will settle all scores. Ice is not ice, at least when it comes to cocktails.

As for a Slushee, perhaps adding a little bourbon to the recipe might change my mind.
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Bottoms up, Salute, or Cheers, your choice!

Get Jacked

I recently joined a health club and have been going fairly consistently for the past month. I get to the club about three to four times a week. I am not working towards personal bests in the bench press or deadlift. I only want to improve my strength and get some endorphins flowing through my body.

Lately, I have read and heard about how calisthenics, which we did in grade school or junior high gym class (Am I showing my age?), are as beneficial as any new age exercise might be. These exercises included push-ups, toe-touches, and who can forget jumping jacks?

In this article, If You Can Do This Many Jumping Jacks in 60 Seconds, You're in Great Shape, you learn how to measure your fitness through jumping jacks.

If I tried that right now, I think I would blow out my knee or pull a groin. How many can you do in one minute?

I will await your results.

Wouldn't You Rather Have a Kit Kat Bar?

Now, on to dessert. Not desert. You want dessert but don't want to be in the desert. I am unfamiliar with most of the desserts you will see in the following video because I have never been to Japan, but they look interesting.

My favorite in this group is the Kit Kat bar. Who doesn't love a Kit Kat bar? However, here in the USA, you can only get the standard original flavor and the mint chocolate flavor. Why can't we get all those fun flavors?

Please watch this video about Japanese desserts. After you do, you can book your next ticket to Tokyo. While you are there, could you pick up some Kit Kat bars in multiple flavors for me?

Also, Mochi looked interesting. It seems to have the consistency of taffy, and how it's made looks fun.

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​Watch the video here.

Thanks for Reading

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Whenever you’re ready, there are several ways I can help you:

1. Economic Development: If you are looking to supercharge your economic development organization, I can help by strategizing and developing a roadmap to success. Set up a time to talk to me here.

2. Culture Change; Is your organization changing? Would you like to create an asset out of your culture? Do you know how to assess team strengths? Let me help you. I'm a certified culture change practitioner. Set up a time to talk to me here.

3. The Green Economy; The world is changing. Some of it is positive, and some of the change is not. Let me help you develop green economy opportunities for your community. Set up some time to talk about here.​

4. Mentoring Programs: Circles of Seven (C7) is a proven and award-winning model for mentoring. Whether it is for business or your community leadership program, I can develop a mentoring program for you. Let's talk about your situation. Set up a time here. ​

If you have any thoughts or comments regarding any articles in this newsletter please feel free to contact me through email at martin@martinkarlconsulting.com.​

You can review my services and offerings at www.martinkarlconsulting.com​

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