A Journey for Economic Developers through Strategic Planning

A Journey for Economic Developers through Strategic Planning

Indiana Economic Development Course Ball State UniversityJanuary 14, 2014

Thayr Richey, Ph.D.PresidentStrategic 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

Thayr Richeywww.sdg.us

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Why Plan? 1. Understand your local economy2. Evaluate possible approaches3. Target your limited resources4. Set performance objectives5. Tell your board, staff and the public what you

are going to do6. Manage your career


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Many Definitions of Economic Development

4Thayr Richeywww.sdg.us

Most of Those Definitions Are at Best Incomplete

Thayr Richey www.sdg.us

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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

Thayr Richeywww.sdg.us 10

What a Plan Does (1 of 2)

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


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What a Plan Does (2 of 2)

4. Tells staff what to do

5. Defines expectations for the board of directors

6. Creates a comprehensive view

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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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3. Need for “consensus”

4. Lack of a vision

5. Confusing “vision” with “strategy”



6. Misunderstanding of economic development

7. Confusing a “study” and a “strategy”


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

2. Vision

3. Goals & Objectives

4. Approaches

6. Actions

7. Organizations & Responsibilities

8. Budget

9. Implementation schedule


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From Goals to Action

1. Goals are large, non-measurable concepts2. Each goal should have measurable

objectives3. Goals should lead to specific programs and

E.D. approaches4. Each approach should have a detailed action

plan


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A Few Economic Development Approaches

1. Retaining revenue within the community2. Infrastructure development3. Improving the workforce4. New basic employer recruitment5. Retention & expansion6. Small business development7. Tourism


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Planning Principles

The process should be:

A. Transparent

B. Inclusive


Step One: Know Where You Are

1. Describe the local and regional economy2. Analyze its major elements3. 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. Focus groupsb. Interviewsc. Surveysd. Public meetings

2. Secondary research – explore existing data and statistics


Sample Data for Step One

Your Region: Manufacturing Earnings and Employees by County

County Manufacturing EarningsNumber of Manufacturing

EmployeesCounty 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


Good Secondary Research Sources

BSU Center for Business & Economic Research http://cms.bsu.edu/academics/centersandins

titutes/bbrr

Indiana Business Research Center http://www.ibrc.indiana.edu/


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


Sample Data for Step Two

Case Studies for Mfg. Innovation

Solar Valley Mitteldeutschland Tech. Innv. Cntr.

U.S. “Mfg. Communities”

Frauenhofer Insts.


Step Three: Determine How to Get There

1. Review the proposed outcomes from Step Two2. Break each outcome into a set of general goals3. Keep it simple: try to have no more than five goals4. Subcommittees research best practice models for each

goal5. Don’t reinvent the wheel, if possible 6. Create the written strategy7. Implement & review frequently


Sample Data for Step ThreeKey Programs for R&E:

Additive Manufacturing TrainingBattery Research

Key Program for NBR:Solar Component Mfg.


Step Four: Implement the Plan Staff and board

should focus on both goals and measurable objectives

Board uses the plan as a governance tool


Sample Data for Step Four

Implementation Plan Excerpt


Action Month 1

Month 2

Month 3

Month 4

Hire Project Manager

Review Targeted Mkt. Plan

Implement Mkt. Plan

Attend Site Sel. Conf.

Review & Report Progress

A Summary of a Typical EDO Planning Process:

1. Initial research2. 4-6 Steering Committee

Meetings3. Create & Implement

Public Communications Plan

4. Develop initial outcomes

5. Research models


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6. Rethink the outcomes7. Create a realistic

implementation plan with measurable objectives

8. Implement the plan9. Review the plan

periodically10. Revise the plan as

needed

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


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


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?


Your Choice

1. Depend upon luck

2. Manage your organization and career with a plan


Conclusion

Thayr Richey, Ph.D.PresidentStrategic Development Group, Inc.

[email protected]

A Journey for Economic Developers through Strategic Planning

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