Presented by Guillermo Mazier/ Atlas Advertising

About Your Presenters

Guillermo Mazier – VP, Strategic Accounts, Atlas Advertising•  Former economic developer and tourism marketer for the Costa Rican

Investment and Trade Development Board•  Managed economic development and tourism campaign for Tortugero, CR•  Industry speaker, content strategy and digital marketing specialist

guillermom@atlas-advertising.com

www.twitter.com/atlasad

Drew Varnado – Data Innovation Specialist, IMPLAN Group•  Ph.D. in Agricultural Economics (Applied Economics) from Louisiana State

University•  Published in peer reviewed journals, university publications, and in government

agency reports (Bureau of Ocean Energy Management, forthcoming)

Introducing Atlas

1.  Denver-based marketing services company, specializing in economic development and tourism marketing

2.  Founded in 2001, 30 employees

3.  Has worked with more communities than any other economic development marketing services firm in the past 10 years: 195+ economic development clients in 47 states and 6 countries

4.  Specialize in providing branding, marketing planning, digital marketing, and GIS enabled websites, all for economic development

5.  Pioneered the industry’s first metrics based benchmarking approach for marketing, business attraction, and business retention: High Performance Economic Development Marketing

6.  IEDC’s High Performance Economic Development Marketing Partner

7.  Frequent public speaker and lead speaker on benchmarking marketing, business attraction, and business retention programs, as well as on branding, research, digital marketing, websites, and GIS.

Introducing Implan

IMPLAN is the leading provider of economic impact modeling for all types of users needing to assess the economic impact of events or projects in any of the 536 IMPLAN industry sectors (corresponding to NAICS).

IMPLAN’s intuitive, online-platform makes constructing multipliers and social accounts easy. Whether you are working with zip codes, county, state, MSA or national aggregates, each subscription includes access to vast economic and demographic variables including employment, multipliers, tax impacts and more.

IMPLAN has been developing complex databases and software since 1993.

View the Slides, Continue the Dialogue

•  Continue the Conversation: –  Follow us on Twitter:

www.twitter.com/AtlasAd –  Tweet questions using hashtag

#ASKATLAS –  Join High Performance Economic

Development LinkedIn Group •  View and share the slides with your

colleagues (available now): www.slideshare.com/wright0405

Today’s Presentation

•  Connecting metrics and “moneyball” •  A short history of metrics•  How one community is staying true to their metrics•  How to implement metrics for your EDO•  What tools make it easier for you?

–  Benchmarking reports–  IMPLAN software–  Scorecards

•  Summary: key takeaways

The Moneyball Concept

•  True story about Oakland A’s 2002 season

•  Team lost all their star players and must rebuild with limited resources

•  GM Billy Beane carries daunting task of winning against teams with triple the budget

•  Beane recruits intern-turned-assistant GM Peter Brand who has radical new ideas about how to win

The Moneyball Concept

•  The answer: Instead of focusing on buying players, they needed to focus on buying wins

•  In order to buy wins, they needed to buy runs

•  In order to buy runs, they needed to acquire players that could get on base

For Billy, the question was, "Which actions correlate most strongly to winning games?”

History of Metrics for Economic

Development

In 2015, the general public still doesn’t know the value of

what we do

EDOs have been measuring their

performance for years

However, with differing viewpoints, metrics have

gotten muddy and misunderstood

In 2011, Atlas put together its first survey of EDO outcomes, to assist

EDOs in planning their marketing, business

attraction, and business retention programs

2011

In 2014, IEDC published its “Making it Count”

Metrics for High Performing EDOs

2014

2016

25,000

123

Average companies served

Typical number of establishments in a community

Trends in the Profession That Make

Metrics a Moving Target 1.  Digital is changing the way communities are being evaluated, and changing our

roles in the process2.  Workforce drives business location, and opens up new ways for EDOs to

influence economies3.  The debate about whether the profession drives outcomes continues, even as the

Great Recession is in the rear view4.  There are more deals happening in communities, leading to more positive

impressions of EDOs 5.  The investor/stakeholder mindset is changing, as demographics of those involved in EDOs are changing

How Can Your EDO Go From .250 to .300?

Ø  In the sport of baseball, most respectable players bat an average of .250, or one hit for every four times at bat.

Ø  If a .250 batter is also a good fielder, he can expect to do well in the big

leagues. Ø  But, if he hits .300, or three hits out of 10 at bats, he is considered a star. By

the end of a season, only a hand full of players will be at .300 and be honored as a star.

Consider this: the difference between the truly great players and the average ones is only one hit out of 20.

What if we were to apply this same principle to economic development? How could a community know how to achieve its

margin of greatness? And how do we know if, as economic developers, we’re making a difference?

4 Ways IEDC Defines Performance Metrics

1.  Internal Segment (Employee

satisfaction, funding sources)

2.  ED Program Segment (Business Attraction, Business Retention, Business Creation)

3.  Relationship Management Segment (Relationships with internal and external stakeholders)

4.  Community Segment (Community well

being, in terms of demographics, workforce, household income, etc.)

Atlas High Performance Economic

Development Focuses on the Relationship

Management Segment (Plus Outcomes from

those Relationships)

1.  Internal Segment (Employee satisfaction,

funding sources

2.  ED Program Segment (Business Attraction, Business Retention, Business Creation)

3.  Relationship Management Segment (Relationships with internal and external stakeholders)

4.  Community Segment (Community well being,

in terms of demographics, )

Outcomes for jobs announced and capital investment announced

Start With the Big 4, Then Get More

Source: How High Performance Economic Development Creates Exceptional Communities (2015)

The Spread Between High & Low Performing

Organizations is Staggering, at All Sizes

BUILDINGACULTUREOFRESPONSIBILITY

KEEP SCORE

REGIONAL

SCO

RECA

RD

“

”

Poll Question: How many metrics do you use to measure your org?

Poll Question: Did your organization meet the metrics that it set in 2015? Do you believe that those metrics were not as aggressive?

Poll Question: What is stopping you from implementing metrics for your

role within the organization?

Steps to Put High Performance into Practice

1.  Discuss your organizational priorities for marketing, business recruitment, and business retention, and start with a simple score card

2. Assign metrics to certain staff 3.  Set a plan to influence that metric for each staff person 4.  Make the metrics plan transparent to your stakeholders 5. Execute, report, and adjust

What are your Organizational Priorities?

Assigning Metrics to Staff What Metrics Does Each Function Influence?

WEB VISITS INQUIRIES /CONVERSATIONS

JOBS ANNOUNCED

CAPITAL INVESTMENT ANNOUNCED

CEO/Executive X X X X Business Developer X X X

Marketer X X

Researcher X

Setting A Plan So That Each Staff

Person Can Drive High Performance

BUILD THIS

Make the Metrics Plan Transparent to

your Stakeholders

region2000dashboard.org

Make the Metrics Plan Transparent to your Stakeholders

ncdashboard.net

Execute, Report, and Adjust

Tools to Check Out!

Public Sources 1.  U.S. Bureau of Labor Statistics 2.  U.S. Census Bureau 3.  Bureau of Economic Analysis 4.  State research centers/ED departments 5.  Area university research centers 6.  Atlas benchmarking tool   Proprietary Sources 1.  Moody’s Economy.com 2.  EMSI (Economic Modeling Specialists

Intl.) 3.  Edward Lowe Foundation

(youreconomy.org) 4.  IMPLAN Group

It’s unbelievable how much you don’t know about the game you’ve been playing all your life. - Mickey Mantle

The metrics that your EDO selects will drive the impact that you have on your community

The impact that you have on your community will affect the lives of your stakeholders, and prove the value of your EDO

UnderstandingYourEconomy

• DataDrivenApproachtoMeasureTotalImpact•  Evalua<onofProjects• UnderstandingtheImpactofYourOrganiza<onontheEconomy

• DriversoftheEconomy

• KeyIndustries•  Employment•  LaborIncome•  Output•  TotalandPerCapita/Employee•  Mul<pliers

•  Specializa<on•  Loca<onQuo<ent•  Shannon-WeaverIndex

UnderstandingYourEconomy

DefiningyourMetrics

• MeasuresofOpportunity-ImportSubs<tu<onStrategy

•  HouseholdandIndustryDemand•  RegionalPurchasingCoefficients•  InputsintoKeyIndustries

•  ValueChain•  GrowthOpportuni<esbasedonexis<ngdemand

Quan<fyingtheImpact

•  Inputs•  Employment,Investment,Wages

•  Impacts•  Direct•  Indirect•  Induced

•  Employment•  IndustriesImpacted•  Fiscal/TaxImpacts

These changes are the

DIRECT EFFECTS

The process begins with a

change in Production or

Spending

Household Income

Leakages Imports

Personal Taxes

Savings

Spending on Local Goods and Services causes INDUCED

EFFECTS

Leakages Payroll Taxes In-Commuters

Labor Income

The Direct Output Effects are applied to the Indirect

Multipliers to calculate the INDIRECT EFFECTS

Leakages Imports Taxes Profits

HowDoesImpactAnalysisWork?

Baseline:BuncombeCounty,NC

Indicator Smith,TX Buncombe,NC

Output $21,596,609,976 $21,519,741,849

Outputperworker $154,068 $127,890

TotalEmployment 140,176 168,268

AverageHHIncome $118,975 $92,351

Popula<on 218,842 250,539

ShannonWeaverIndex 0.71469 0.74054

NumberofIndustries 265 311

LandArea 929 656

TopFiveSectors:Employment

Sector Employment Output EmployeeCompensa<on

Realestate 7,696 $958,804,688 $43,405,155

Full-servicerestaurants 7,267 302,299,438 148,285,294

Hospitals 6,960 990,983,032 453,143,005

Limited-servicerestaurants 5,343 380,082,947 82,896,782

Localgovt,educa<on 4,697 $303,959,503 $262,238,342

TopFiveSectors:Output

Sector Employment Output EmployeeCompensa<on

Hospitals 6,960 $990,983,032 $453,143,005

Realestate 7,696 958,804,688 43,405,155

Wholesaletrade 3,861 782,788,757 228,740,952

Officesofphysicians 4,384 684,782,288 476,147,156

Relayandindustrialcontrolmanufacturing 1,686 $627,366,638 $147,647,827

TopFiveSectors:EmployeeCompensa<on

Sector Employment Output EmployeeCompensa<on

Officesofphysicians 4,384 $684,782,288 $476,147,156

Hospitals 6,960 990,983,032 453,143,005

*Employmentandpayrolloffederalgovt,non-military 2,425 420,883,575 269,351,044

*Employmentandpayrolloflocalgovt,educa<on 4,697 303,959,503 262,238,342

*Employmentandpayrolloflocalgovt,non-educa<on 3,065 219,606,110 189,266,922

Full-servicerestaurants 7,267 $302,299,438 $148,285,294

Loca<onQuo<ent:Specializa<on

Sector LQ EmploymentRelayandControlMfg 39.1 1,686Sohwarereproducing 16.5 193Breweries 9.1 386Aircrahengine 3.7 271Wineries 3.7 216

Greenhouse,nursery,andfloricultureproduc<on 3.2 440Prin<ng 2.7 1,304

Warehousingandstorage 2.1 1,838Hotels 1.6 2,040MotorGeneratorMfg 1.6 663

ImportSubs<tu<on

Descrip<onSupply Demand Opporunity RPC

Sohwarepublishers $23,103,678 $115,512,649 $92,408,971 19%

Computersystemsdesignservices 29,624,985 88,454,269 58,829,284 32%

Facili<esManagementServices 13,427,471 48,570,165 35,142,694 26%

Technicalconsul<ngservices 9,624,741 35,107,344 25,482,603 27%

Machinedproducts $27,740,564 $44,142,804 $16,402,239 2%

FilteringtheOpportuni<es

Sector Employment OutputPerWorkerLaborIncomePer

Worker

Wirelesstelecommunica<onscarriers(exceptsatellite) 230 $1,555,137 $29,557

Pharmaceu<calprepara<onmanufacturing 145 1,524,176 81,762

Electricpowertransmissionanddistribu<on 154 1,456,327 101,210

Breweries 386 1,014,475 50,807

Aircrahengineandenginepartsmanufacturing 271 $722,305 $78,407

EmploymentImpacts

200 200 200

89131

96

90

96 145

0

50

100

150

200

250

300

350

400

450

500

Brewery AircrahEngine RelayandIndustrialControl

Direct Indirect Induced

LaborIncome

10,553,600

16,286,790 18,185,984

12,268,0635,070,986

4,852,409

5,401,3314,995,429

5,387,628

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

Brewery AircrahEngine RelayandIndustrialControlsDirect Indirect Induced

Output

68,262,918

149,658,502

77,368,953

14,010,567

15,712,151

15,217,16210,293,507

15,417,316

16,627,777

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

180,000,000

200,000,000

Brewery AircrahEngine RelayandIndustrialControlsDirect Indirect Induced

TaxImpacts

$899,286$1,459,038

$739,774

$728,240

$684,265

$949,527

$556,286

$743,312

$801,660

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

Brewery AircrahEngine RelayandIndustrialControls

Direct Indirect Induced

Brewery-KeyIndustriesImpacted:Output

Descrip<on Indirect Induced TotalWholesaletrade $2,308,450 $349,217 $2,657,666

Managementofcompaniesandenterprises $1,595,732 $48,825 $1,644,557Trucktransporta<on $1,363,556 $101,165 $1,464,721Owner-occupieddwellings $0 $1,349,289 $1,349,289Realestate $345,023 $702,027 $1,047,051Lessorsofnonfinancialintangibleassets $823,686 $30,470 $854,157Hospitals $0 $812,404 $812,404

Banking $357,344 $343,700 $701,044

Electricpowertransmissionanddistribu<on $447,746 $157,363 $605,109

BuildingMaintenance $363,376 $94,172 $457,548

Brewery-TopTenGrossInputs

Descrip<on GrossInputs OpportunityRegionalInputs

Metalcans $37,080,663 $37,056,343 $24,319

Glasscontainers 30,365,156 30,365,156 0

Managementofcompaniesandenterprises 24,350,913 15,795,146 8,555,767

Wholesaletradedistribu<onservices 20,360,737 7,892,440 12,468,296

Flour 16,827,231 16,552,766 274,465

Paperboardcontainers 16,549,067 16,141,605 407,462

Grains 10,278,448 10,099,286 179,163

Trucktransporta<onservices 8,883,071 1,422,752 7,460,319

Wetcorn 6,204,752 6,204,752 0

Allothercrops $2,878,644 $1,290,059 $1,588,585

Brewery-TopTenRegionalInputs

Descrip<on GrossInputs Opportunity RegionalInputs

Wholesaletradedistribu<onservices $20,360,737 $7,892,440 $12,468,296

Managementofcompaniesandenterprises 24,350,913 15,795,146 8,555,767

Trucktransporta<onservices 8,883,071 1,422,752 7,460,319

Banking 4,164,534 27,065 4,137,470

Electricitytransmissionanddistribu<on 3,582,662 1,426,725 2,155,937

Naturalgasdistribu<on 2,562,920 432,365 2,130,554

Malt 2,472,651 547,368 1,925,283

Railtransporta<onservices 2,555,302 658,898 1,896,405

Wastemanagementandremedia<onservices 1,871,146 137,159 1,733,987

Allothercrops $2,878,644 $1,290,059 $1,588,585

Indicator Direct Indirect Induced Total

Employment 200 89 90 379

LaborIncome $10,553,600 $12,268,063 $5,401,331 $28,222,994

Output $68,262,918 $14,010,567 $10,293,507 $92,566,992

TaxImpacts $899,286 $726,240 $556,286 $2,183,812

Brewery:ImpactSummary

KeyTakeaways• Haveadeepunderstandingofyoureconomyandhowitworks

•  Interac<onsbetweenindustries•  Buildaneconomicecosystem

• Understandthetruevalueofyourac<vity• Nextwaveofdevelopment

Moneyball for economic development is all about maximizing limited resources. It's about optimization, for which the key is to find the

one factor that matters most and focus on optimizing that

Key Takeaways

•  Think differently about how you should view metrics for your EDO

•  Learn to see the game in a whole new way

•  Depend on information to predict success

•  Measure what matters •  Recruit the right players (i.e. your

board, partners, staff)

Intern-turned-assistant GM Peter Brand played by Jonah Hill

How the Moneyball Story Ends

•  A’s finish first in the AL West •  Won a record 20 straight wins •  Won as many games as the Yankees (103)

–  Yankees = $1.4 million per win–  A’s = $260,000 per win

•  Red Sox take note –  Adopt the A’s moneyball philosophy and win

World Series in 2004 (first time since 1918)

Thank you! Contact information: Guillermo Mazier Atlas Advertising guillermom@atlas-advertising.com 303.292.3300 x 232 Drew Varnado IMPLAN Group drew.varnado@implan.com

Questions?