Crafting a Resident-Centric CX Strategy for Michigan

Last week, I shared an idea about one idea to shape growth, talent development, and performance in Michigan through labor productivity improvements. This week, I’ve tried to illustrate how CX practices can be used to inform talent attraction and retention at the state level.

The post is below, and it’s a ChatGPT write-up of an exercise I went through to rapidly prototype what a CX approach might actually look like. In the spirit of transparency, there are two sessions I had with ChatGPT: this this one on talent retention. I can’t share the link for the one on talent attraction because I created an image and sharing links with images is apparently not supported (sorry). It is similar.

There are a few points I (a human) would emphasize that are important subtleties to remember.

1. Differentiating matters a ton. As the State of Michigan, I don’t think we can win on price (i.e., lower taxes) because there will always be a state willing to undercut us. We have to play to our strengths and be a differentiated place to live.

2. Focus matters a ton. No State can cater to everyone, and neither can we. We have to find the niches and do something unique to win with them. We can’t operate at the “we need to attract and retain millennials and entrepreneurs” level. Which millennials and which entrepreneurs? Again, we can’t cater to everyone - it’s too hard and too expensive. It’s just as important to define who we’re not targeting as who we are targeting.

3. Transparency matters a ton. As a State, the specific segments we are trying to target (and who we’re deliberately not trying to targets) need to be clear to all stakeholders. The vision and plan needs to be clear to all stakeholders (including the public) so we can move toward one common goal with velocity. By being transparent on the true set of narrow priorities, every organization can find ways to help the team win. Without transparency, every individual organization and institution will do what they think is right (and is best for them as individual organizations), which usually leads to scope creep and a lot of little pockets of progress without any coordination across domains. And when that happens, the needle never moves.

4. It seems like the State of Michigan is doing some of this. A lot of the themes from ChatGPT are ones I’ve heard before. Which is great. What I haven’t heard are the specific set of segments to focus on or what any of the data-driven work to create segments and personas was. If ChatGPT can come up with at least some relatively novel ideas in an afternoon, imagine what we could accomplish by doing a full-fidelity, disciplined, data-driven, CX strategy with the smartest minds around growth, talent, and performance in the State. That would be transformative.

I’d love to hear what you think. Without further ado, here’s what ChatGPT and I prototyped today around talent attraction and retention for the State of Michigan.

—

Introduction: Charting a New Course for Michigan

In an age where competition for talent and residents is fierce among states, Michigan stands at a crossroads. To thrive, it must reimagine its approach to attracting and retaining residents, and this is where Customer Experience (CX) Strategy, intertwined with insights from population geography, becomes vital. Traditionally a business concept, CX Strategy in the context of state governance is about understanding and catering to the diverse needs of potential and current residents. It's about seeing them not just as citizens, but as customers of the state, with unique preferences and aspirations.

Understanding CX Strategy in Population Geography

CX Strategy, at its essence, involves tailoring experiences to meet the specific needs and desires of your audience. For a state like Michigan, it means crafting policies, amenities, and environments that resonate with different demographic groups. Population geography provides a lens to understand these groups. It involves analyzing why people migrate: be it for job opportunities, better quality of life, or cultural attractions. This understanding is crucial. For instance, young professionals might be drawn to vibrant urban environments with tech job prospects, while retirees may prioritize peaceful communities with accessible healthcare. Michigan, with its rich automotive history, beautiful Great Lakes, and growing tech scene, has much to offer but needs a focused approach to highlight these strengths to different groups.

Applying CX Strategy: Identifying Target Segments

The first step in applying a CX Strategy is identifying who Michigan wants to attract and retain. This involves delving into demographic data, economic trends, and social patterns. Creating detailed personas based on this data helps in understanding various needs and preferences. For instance, a tech entrepreneur might value a supportive startup ecosystem, while a nature-loving telecommuter may prioritize scenic beauty and a peaceful environment for remote work. These insights lead to targeted strategies that are more likely to resonate with each group, ensuring efficient use of resources and increasing the effectiveness of Michigan's efforts in both attracting and retaining residents.

In the next section, we'll explore the importance of differentiation in attraction and retention strategies, and delve into the specific segments that Michigan should focus on. Stay tuned for a detailed look at how Michigan can leverage its unique attributes to create a compelling proposition for these key resident segments.

Importance of Differentiation in Attraction and Retention

Differentiation is crucial in the competitive landscape of state-level attraction and retention. It’s about highlighting what makes Michigan unique and aligning these strengths with the specific needs of targeted segments. For attraction, it might mean showcasing Michigan’s burgeoning tech industry to young professionals or its serene natural landscapes to nature enthusiasts. For retention, it involves ensuring that these segments find ongoing value in staying, like continuous career opportunities for tech professionals or maintaining pristine natural environments for outdoor lovers.

In focusing on segments like automotive innovators or medical researchers, Michigan can leverage its historic strengths and modern advancements. By tailoring experiences to these specific groups, the state can stand out against competitors, making it not just a place to move to but a place where people want to stay and thrive.

Overlap and Distinction in Attraction and Retention Strategies

The overlap and distinctions between attracting and retaining segments offer nuanced insights. Some segments, like tech and creative professionals, show significant overlap in both attracting to and retaining in urban settings like Detroit. This indicates that strategies effective in drawing these individuals to Michigan may also foster their long-term satisfaction. However, for segments with minimal overlap, such as medical researchers (attraction) and sustainable farmers (retention), strategies need to be distinct and targeted to their unique needs and lifestyle preferences.

Successful implementation teams will use these insights to create nuanced strategies for each segment. Avoiding a one-size-fits-all approach and recognizing the different motivations between someone considering moving to Michigan and someone deciding whether to stay is key. The primary pitfall to avoid is neglecting the distinct needs of each segment, which could lead to ineffective strategies that neither attract nor retain effectively.

Deep Dive into Experience Enhancements

Let’s delve into two specific segments: nature-loving telecommuters for attraction and tech and creative young professionals in Detroit for retention. For the nature-loving telecommuter, Michigan can offer unique experiences that blend the tranquility of its natural landscapes with the connectivity needed for effective remote work. Imagine "remote worker eco-villages" scattered across Michigan’s scenic locations, equipped with state-of-the-art connectivity and co-working spaces, set against the backdrop of Michigan's natural beauty. This not only caters to their desire for a serene work environment but also positions Michigan as a leader in innovative remote working solutions.

For tech and creative young professionals in Detroit, the strategy should be about fostering a dynamic urban ecosystem that offers continuous growth opportunities and a thriving cultural scene. Initiating a Detroit Tech and Arts Festival could serve as an annual event, bringing together tech innovators, artists, and entrepreneurs. This festival, coupled with collaborative workspaces and networking hubs, would not only retain existing talent but also attract new professionals looking for a vibrant, collaborative, and innovative urban environment.

Conclusion: Michigan’s Path Forward

Michigan is uniquely positioned to become a beacon for diverse talents and lifestyles. By adopting a resident-centric CX Strategy, informed by population geography, Michigan can tailor its offerings to attract and retain a dynamic population. It’s about moving beyond generic policies to creating experiences and opportunities that resonate with specific segments. The call to action is clear: Let's embrace innovation, leverage our unique strengths, and build a Michigan that’s not just a place on a map, but a destination of choice for a vibrant and diverse community. With these strategies, Michigan won’t just attract new residents – it will inspire them to stay, contribute, and flourish.

Attraction Segments Table:

Retention Segments Table:

How Might We Boost Labor Productivity in Michigan?

What is Labor Productivity and Why Does it Matter?

I want you to care about labor productivity at the state level. Here’s a ChatGPT-supported primer on what labor productivity is and why it matters.

Labor productivity, the measure of output or value produced per unit of labor input, holds crucial significance at the state level. This economic metric directly impacts a state's health, competitiveness, and overall prosperity. States with higher labor productivity levels tend to experience robust economic growth, attracting businesses and creating job opportunities. This growth leads to tangible improvements in living standards, healthcare, infrastructure, and education, enhancing the quality of life for residents.

Conversely, low labor productivity can signal inefficiencies, hindering job creation and potentially leading to stagnant economies. In such cases, residents may face reduced access to quality healthcare and education, limited infrastructure development, and a less favorable living environment. Therefore, labor productivity serves as a vital tool for state-level policymakers, guiding their decisions on resource allocation, workforce development, and policies aimed at fostering economic growth. By prioritizing productivity, states can elevate the well-being of their citizens and build stronger, more prosperous communities.

Stanley Fischer, former Vice Chairman of the Federal Reserve Board of Governors, gave a talk in July 2017, titled "Government Policy and Labor Productivity." He expounded on the importance of labor productivity, stating that it is a basic determinant of the rate of growth of average income per capita over long periods. To understand the impact of productivity growth, consider this rule of thumb: divide 70 by the growth rate to estimate the doubling time of productivity. For instance, during the 25 years from 1948 to 1973, labor productivity grew at 3.25% annually, doubling in just 22 years. In contrast, from 1974 to 2016, the growth rate slowed to 1.75%, doubling the time to 41 years. This illustrates the significant difference in economic prospects across generations, highlighting the importance of productivity.

How has labor productivity been trending in the State of Michigan?

Overall, Michigan is not among the leading states with respect to it’s long run growth rate for labor productivity. Here’s an example that puts it into perspective.

Imagine two businesses, one in Michigan and the other in North Dakota, starting in 2007 with 100 units of output per unit of labor. Over the next 15 years, their paths diverge significantly. In Michigan, the average annual growth of 0.8% sees modest progress, reaching 113 units by 2022. In North Dakota, with a 2.7% growth, the productivity soars to 149 units of output per unit of labor. That difference is real money, real wealth, and real prosperity. This stark contrast in growth trajectories illustrates the transformative power of productivity rates.

For a more detailed analysis of recent trends (and data related to the thought experiment above), check out what the Bureau of Labor Statistics has published about state-level labor productivity, including the effects of the COVID-19 pandemic and specific changes in 2022. They’re fascinating.

The Opportunity

There is an opportunity to increase the long-run labor productivity growth rate in the State of Michigan.

Targeted strategies, rather than broad, sweeping changes, are more likely to yield positive results. The complexity of labor productivity issues necessitates a cross-sector vision and strategy, aligning efforts from the private sector, government, academia, the social sector, philanthropy, and the educational sector around a coordinated mission.

As I see it, taising labor productivity at the state level involves three distinct phases of work, with an assumption of continuous iteration.

The first phase is to deeply understand the problem. Michigan's world-class research universities should conduct research to understand what drives and hinders labor productivity in the state. This includes quantitative and qualitative research, examining factors like capital investment, skills development, and innovation, as well as under-utilized assets for improving productivity. We need to understand labor productivity deeply - by industry, by job type, by geography, and more.

The second phase involves a cross-functional group of major stakeholders and citizen groups selecting areas of focus (e.g., industry, types of jobs, regions of Michigan) that present unique opportunities for improving labor productivity. Success metrics and data infrastructure should be established early on to allow for dispassionate evaluation of implemented solutions. The cross-functional group could then moves to ideation, brainstorming solutions within each of the focus areas. Prioritization criteria - developed in advance - should then be used to narrow down possibilities, aiming to identify a set of small, quickly testable experiments.

This is worth nothing, the goal shouldn’t be to have huge transformation and an endless slate of big splash initiatives. At the beginning, learning is more important. And the best way to learn is to deploy small-scale programs quickly and cheaply.

After about a year, the group would start phase three by reconvening to assess the experiments, deciding what to scale, stop, or further test. This process will likely reveal systemic blockers, informing a data-driven policy agenda. The group can then iterate and scale the most effective strategies and pursue the most promising policy innovations for increasing labor productivity in Michigan.

I am excited about what’s happening in Michigan. A deep, cross-functional examination of labor productivity could bring together our most capable institutions and thinkers to collaborate and make our state more prosperous. We have great assets across sectors; all we need is the will and a framework to collaborate productively. Labor productivity matters and is a simple concept that can create an organizing framework and sense of shared purpose for driving transformational collaboration across sectors. We should strive to raise labor productivity together, at the state level.

In conclusion

Understanding and improving labor productivity is not just an economic concern; it's a pathway to enhancing the quality of life for everyone in Michigan. Let's not just witness the change – let's be the architects of it. There are so many exciting ideas (like the UM Detroit Innovation Center or the Growing Michigan Together Council) which might create opportunities for influencing labor productivity that are just starting in Michigan. Reach out, contribute your thoughts, and let's turn these ideas into actionable strategies. Together, we can forge a future where economic growth and prosperity are shared by all.

You can reach me at hello@neiltambe.com or leave a comment. I’m excited to hear from you.