Transcript Strategic Planning for Economic Development

A Journey for Economic
Developers through Strategic
Planning
Indiana Economic Development Course
Ball State University
January 14, 2014
Thayr Richey, Ph.D.
President
Strategic Development Group, Inc.
Two Goals
1. Look at one effective way to plan for
economic development, and
2. As we do that, briefly discuss
economic development theory
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Why Plan?
1.
2.
3.
4.
5.
Understand your local economy
Evaluate possible approaches
Target your limited resources
Set performance objectives
Tell your board, staff and the public what you
are going to do
6. Manage your career
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Many Definitions of Economic
Development
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Most of Those Definitions Are at Best Incomplete
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Why Pursue Economic Development?
1. To give residents an opportunity to
have more money
2. To ensure that our community has an
economic reason for existence
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There Are No Simple Solutions
 New Basic Employer Recruitment
 The Creative Class
 Focusing on workforce development
 Entrepreneurship
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Societies and Economies
Change
Throughout any Midwest
state you can find dead and
dying communities whose
economic reason for
existence has failed.
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A Brief but Important Tangent
 There are lies,
 damned lies,
 and statistics.
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Local Economies Are Volatile
Strategic planning
deals with change
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What a Plan Does
1.
Gives a clear map that
can be changed
2.
Focuses on what can be
controlled
3.
Provides a clear and
stable picture to
volunteers and public
(1 of 2)
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What a Plan Does
4.
Tells staff what to do
5.
Defines expectations for
the board of directors
6.
Creates a
comprehensive view
(2 of 2)
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Economic Development is Not
an End in Itself
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A Community’s Economic
Development Strategy
Must support the community’s vision
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Planning Is a Pejorative
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Planning Obstacles in Economic
Development (1 of 3)
1. Previous bad experiences
2. Action-oriented small business approach
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Planning Obstacles in Economic
Development (2 of 3)
3. Need for “consensus”
4. Lack of a vision
5. Confusing “vision” with “strategy”
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Planning Obstacles in Economic
Development (3 of 3)
6. Misunderstanding of economic
development
7. Confusing a “study” and a “strategy”
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Economic Development Requires
the Actions of Partners
 Local elected officials
 Utility-based operations
 Local/regional businesses
 Developers
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Time Frame for Plan?
 One year
 Three years
 Five years
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Beginning the planning process
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Basic Elements
1.
Mission
5.
Actions
2.
Vision
6.
Organizations &
Responsibilities
3.
Goals & Objectives
7.
Budget
4.
Approaches
8.
Implementation schedule
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From Goals to Action
1. Goals are large, non-measurable concepts
2. Each goal should have measurable
objectives
3. Goals should lead to specific programs and
E.D. approaches
4. Each approach should have a detailed action
plan
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A Few Economic Development
Approaches
1.
2.
3.
4.
5.
6.
7.
Retaining revenue within the community
Infrastructure development
Improving the workforce
New basic employer recruitment
Retention & expansion
Small business development
Tourism
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Planning Principles
The process should be:
A. Transparent
B. Inclusive
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Step One: Know Where You Are
1. Describe the local and regional economy
2. Analyze its major elements
3. Evaluate the current economic strengths
and weaknesses

Include demographic trends, business clusters,
workforce, transportation, etc.
4. Regard macro-economic forces
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Use Primary & Secondary Research
1. Local input (primary research)
a.
b.
c.
d.
Focus groups
Interviews
Surveys
Public meetings
2. Secondary research – explore existing data and
statistics
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Sample Data for Step One
Your Region: Manufacturing Earnings and Employees by County
County
Manufacturing Earnings
Number of Manufacturing
Employees
County 1
$778,465,000
5,357
County 2
$361,754,000
7,000
County 3
$61,898,000
1,459
County 4
$90,366,000
1,561
County 5
$84,744,000
1,194
County 6
$126,316,000
1,745
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Good Secondary Research Sources
 BSU Center for Business & Economic
Research
 http://cms.bsu.edu/academics/centersandin
stitutes/bbrr
 Indiana Business Research Center
 http://www.ibrc.indiana.edu/
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Step Two:
Determine Where You Want to Go
1. List problems and opportunities
2. Consider which are most important
3. Do you have the ability & resources to
solve problems & to build on opportunities?
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Identify Existing Relevant Models
 Examine analogous
communities and regions
 Talk with your
counterparts in those
communities about
lessons learned
 Create hypothetical
outcomes from the new
plan
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Sample Data for Step Two
Case Studies for
Mfg. Innovation
 Solar Valley
Mitteldeutschland
Tech. Innv. Cntr.
 U.S. “Mfg.
Communities”
 Frauenhofer Insts.
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Step Three:
Determine How to Get There
1.
2.
3.
4.
5.
6.
7.
Review the proposed outcomes from Step Two
Break each outcome into a set of general goals
Keep it simple: try to have no more than five goals
Subcommittees research best practice models for each
goal
Don’t reinvent the wheel, if possible
Create the written strategy
Implement & review frequently
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Sample Data for Step Three
Key Programs for R&E:
Additive Manufacturing
Training
Battery Research
Key Program for NBR:
 Solar Component Mfg.
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Step Four: Implement the Plan
 Staff and board
should focus on both
goals and
measurable
objectives
 Board uses the plan
as a governance tool
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Sample Data for Step Four
Implementation Plan Excerpt
Action
Month
1
Month
2
Month Month
3
4
Hire Project Manager
Review Targeted Mkt. Plan
Implement Mkt. Plan
Attend Site Sel. Conf.
Review & Report Progress
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A Summary of a Typical EDO
Planning Process:
1.
2.
3.
4.
5.
Initial research
4-6 Steering Committee
Meetings
Create & Implement
Public Communications
Plan
Develop initial
outcomes
Research models
6. Rethink the outcomes
7. Create a realistic
implementation plan with
measurable objectives
8. Implement the plan
9. Review the plan
periodically
10. Revise the plan as
needed
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Three Questions You Should Ask
1. Can the organization(s) meet the community’s
primary economic needs and opportunities?
2. Do we have board commitment to carry out
this mission?
3. Do we have the resources to carry out a
meaningful plan?
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Common ED Planning Issues
1. Funding new employer site capacity
2. Determining services to established business
3. Improving outreach to prospective employers
4. Working with multi-county, regional partners
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Planning as a Tool
for Professional Survival
1. Establishing realistic objectives
2. Setting and controlling expectations
3. Clarifying the metrics by which you are
evaluated
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Career Planning
1. Where do you want to be in 5 years?
2. What will you need to do to get there?
3. Is your current job an asset or liability?
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Your Choice
1. Depend upon luck
2. Manage your organization and career
with a plan
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Conclusion
Thayr Richey, Ph.D.
President
Strategic Development
Group, Inc.
www.sdg.us
1-800-939-2449
[email protected]