For over two decades, the Itasca Project served as the quiet, influential engine behind some of Minnesota’s most significant regional policy shifts. Comprised of a heavy-hitting alliance of CEOs, philanthropic leaders, and public sector officials, the organization was often cited as a national gold standard for cross-sector collaboration. However, in a move that has sent ripples through the Twin Cities’ civic and business communities, the leadership of the Itasca Project has officially announced the dissolution of the initiative.
The decision to "graduate" its work to other regional entities marks the end of an era for a specific brand of CEO-led civic activism. While the organization’s leaders frame the move as a natural evolution and a testament to the strength of the ecosystem they helped build, the shutdown raises pressing questions about the future of corporate leadership in public affairs and the shifting dynamics of regional governance.
Main Facts: The Dissolution of a Civic Powerhouse
On Friday, October 25, 2024, a 10-paragraph memo was dispatched to the Itasca Project’s working teams and financial backers. The message was clear and final: the executive leadership council (ELC) had reached a unanimous decision to retire the Itasca Project as a standalone initiative.
The timing of the announcement was particularly striking given the leadership transition that occurred just one year prior. In October 2023, Steve Grove—the publisher of the Minnesota Star Tribune and former Commissioner of the Minnesota Department of Employment and Economic Development (DEED)—was appointed as the project’s chair. At the time, Grove expressed optimism about growing the initiative’s impact. However, after a seven-month period of strategic deliberation, the council concluded that the landscape of civic engagement had changed fundamentally since the project’s inception in the early 2000s.
Key Details of the Shutdown:
- Leadership: The decision was led by Steve Grove (Chair) and Jake Blumberg (Managing Director), supported by an executive council including leaders from McKinsey & Co., Mortenson, and former executives from U.S. Bank and Medica.
- The "Graduation" Model: Rather than simply ceasing operations, the Itasca Project is transferring its core programs to other organizations. Greater MSP, the regional economic development agency, will absorb several key leadership initiatives.
- Reasoning: Leadership cited the proliferation of other capable organizations—such as the GroundBreak Coalition—and a desire to see civic work led by individuals with more diverse "lived experiences and identities" than the traditional CEO-heavy roster of the Itasca Project.
- Transition of Staff: Jake Blumberg, who served as managing director, has already transitioned out of the role to launch a private consulting firm.
Chronology: Two Decades of Influence
To understand the weight of this dissolution, one must look at the trajectory of the Itasca Project from a "virtual" entity to a formalized powerhouse.
The Formative Years (2004–2010)
The Itasca Project began as an informal, invitation-only group of CEOs who wanted to tackle regional problems that government alone could not solve. It operated without a permanent office or a large staff, relying instead on the "pro bono" consulting power of McKinsey & Co.
In 2008, the group achieved one of its most visible victories. By researching transportation funding models in other states, the Itasca Project provided the data and political cover needed for the Minnesota Legislature to pass the largest transportation investment in state history, which included a critical increase in the gas tax.
Institutionalization and Expansion (2011–2021)
In 2011, the Itasca Project birthed Greater MSP, a formal regional economic development organization. While Greater MSP focused on business recruitment and regional branding, Itasca remained focused on "social-economic" issues like housing, transit, and education.
During this decade, the project launched "Mind the Gap," a data-driven campaign that forced the local business community to confront racial and socio-economic disparities. It also established the "Business Bridge" initiative, encouraging large corporations to direct their procurement spending toward local, small, and minority-owned businesses.
The Push for Structure (2022–2023)
By 2022, under the leadership of then-chair Lynn Casey (former chair of Padilla), the Itasca Project sought to move away from its "virtual" roots. Casey argued that the complexity of modern problems required more oversight and accountability. This led to the creation of a formal Executive Leadership Council, a permanent office space within Greater MSP, and the hiring of full-time staff.
In October 2023, the organization celebrated its 20th anniversary with a high-profile event at St. Paul’s Union Depot, titled "Catalyzing Civic Leadership." More than 300 leaders attended, and there was little outward sign that the organization was entering its final year.
The Strategic Pivot (2024)
Following the anniversary, the leadership embarked on a seven-month strategic review. According to Jake Blumberg, this period involved "community connections and feedback" to determine if the Itasca Project was still the right vehicle for regional progress. This culminated in the October 2024 announcement that the project would sunset.
Supporting Data: A Legacy of Measurable Impact
The Itasca Project’s model was built on "task forces"—short-term, high-intensity working groups that produced well-researched reports. Over 20 years, these efforts left a measurable mark on the state:
- Transportation Funding: The 2008 gas tax increase, influenced by Itasca’s research, provided billions in long-term funding for Minnesota’s roads and bridges.
- Economic Disparities: The "Mind the Gap" reports became the foundational documents for regional DEI (Diversity, Equity, and Inclusion) efforts, providing the statistical backbone for the argument that racial equity is an economic imperative.
- Leadership Pipelines: The Minnesota Young American Leaders Program (MYALP), a collaboration with Harvard Business School, has trained hundreds of emerging leaders. This program will continue under the stewardship of Greater MSP.
- Regional Growth: By founding Greater MSP, the Itasca Project created a permanent infrastructure for regional economic competition that has outlasted the project itself.
Official Responses: Graduation vs. Decline
The official narrative from the Itasca Project leadership is one of success and "mission accomplished." In the Friday memo, the council stated, "The task force model that Itasca pioneered to address issues has been fully adopted by Greater MSP and others… It is inspiring to see this work continue in countless ways."
The Leadership’s Perspective
Jake Blumberg elaborated on the decision via LinkedIn, suggesting that the traditional CEO-led model needed to make room for new voices. He noted that civic engagement is now "best carried forward by numerous other organizations… especially those led by folks with different lived experiences and identities than those who have predominantly led those efforts historically."
Steve Grove, the current chair, echoed this sentiment, framing the move as a way to "grow the impact" of the work by embedding it into more permanent regional structures.
The Critical Counter-Perspective
However, not all observers view the shutdown as a simple "graduation." Some business leaders have expressed concern that the dissolution of the Itasca Project signals a retreat by top-tier CEOs from the civic arena.
In a February 2024 article in Twin Cities Business, concerns were raised that modern CEOs are increasingly consumed by the "complexity and intensity of the corporate environment," leaving them with less bandwidth for regional civic leadership than their predecessors. Lynn Casey, while supporting the dissolution, noted in that same article that the evolution of the corporate world has changed how executives engage, shifting responsibilities to those below the CEO level.
Implications: The Future of Minnesota’s Civic Ecosystem
The disbanding of the Itasca Project occurs at a precarious time for Minnesota. The state is currently grappling with anemic population growth, significant fiscal challenges in its major cities, and deep political polarization regarding public safety and education.
1. The Decentralization of Influence
With the Itasca Project gone, there is no longer a single "table" where the region’s most powerful CEOs meet specifically to solve social problems. While Greater MSP and the GroundBreak Coalition (a group focused on closing the racial wealth gap) are stepping up, the influence is now decentralized. This may lead to more diverse perspectives, but it could also result in a lack of the "concentrated firepower" that the Itasca Project used to move the needle on state legislation.
2. The Shift in DEI Leadership
Blumberg’s comments about "lived experience" suggest a conscious shift in who is allowed to lead civic initiatives. The Itasca Project was often criticized for being "pale, male, and stale"—a reflection of the corporate boardrooms of the early 2000s. Its dissolution may pave the way for organizations like the GroundBreak Coalition, which are designed with equity at the center rather than as a secondary task force objective.
3. The McKinsey Model
For years, the Itasca Project was synonymous with McKinsey & Co.’s pro bono work in Minnesota. With the project ending, it remains to be seen if the global consulting giant will maintain the same level of local civic investment, or if that specific pipeline of data-driven policy research will dry up.
4. A New Model for Corporate Citizenship
The "graduation" of the Itasca Project may be the ultimate proof of its success—it built an ecosystem so robust that it is no longer needed. Conversely, it may be a warning sign that the era of the "Civic CEO" is over, replaced by corporate leaders who are more focused on global ESG (Environmental, Social, and Governance) metrics than on the specific infrastructure and social fabric of their headquarters’ home turf.
In the coming weeks, the executive leadership council plans to hold virtual meetings to allow for "dialogue" among stakeholders. While the Itasca Project name will fade, the regional leaders now face the challenge of proving that the "spirit of Itasca" can survive without the formal structure that sustained it for two decades.
