Fund for Our Economic FutureFund for Our Economic Future
Phase 3 Strategy Presentation
Steering Committee
May 28, 2009
2
Strategy Process: Time line
45 FunderInterviews
Large group meetingOver 40 Funders
Strategy Direction(Draft) Small
GroupRefine/Partner Outreach
Small Group Review
AdoptStrategy
StrategyPublic
Oct2008
Nov2008
Feb2009
Mar2009
AprilMay2009
June2009
Oct2009
PHASE 3 PRESENTATION• Fund Overview
– Outcomes– Lessons Learned
• Phase 3 – What is the same?– What is different?– Evaluating Outcomes
• The Work Ahead– Goals and strategies– Objectives– Fund Structure– Financial Planning and Principles
3
Outcomes of Fund’s WorkTangible, compounding economic impact
$1.1 BILLION
$>100 MILLION
Outcomes of Fund’s WorkCultural Shift
Growing shared support of regional economic competitiveness agenda
>80 partners in Advance NEO
98% of residents identify with NE Ohio
Increased optimism (26% 2006 to 41% in 2008)
Lessons Learned• System change takes time, sustained
effort, and needs champions
6
Lessons Learned• Direct support of initiatives must be paired with work on
the overall regional system of collaboration, both geographic and programmatic
7
+
8
Phase 3 Work: What stays the same?
Phase 3 Work: What stays the same?
9
Diversity and Inclusion Tools to be used Collaborative Model
Phase 3 Work: What changes?
10
FFEF
Action Area Team Champion
Part of Fund resources will go towards forming regional leadership and action area champions
Phase 3 Work: What changes?
• Communications and engagement focused on community influencers
11
Phase 3 Work: What changes?
12
Respond to economic climate
Intensified focus on priority industry clusters
Assess grantee performance + greater financial sustainability
Evaluating Phase 3 Outcomes
How is the REGION doing against the goals of Advance Northeast Ohio? At the highest level,
2020 goals- Per capita income > national average- Employment growth > national average- Concentrated poverty < 20% in urban areas
By 2013 - Improvement in each of these categories with region out of 4th quartile in at least one of the categories and reduction in urban poverty rate versus 2009
How is the Fund doing?
• Level of community awareness of and leadership around the economic competitiveness agenda priorities
• Grantee performance related to specific goals tied to investment, payroll and job creation
13
Goal 1:
Acceleratejob & incomegrowth
Goal 2:
Reduce impediments to long-term growth
Goal 3:
Sustain economic competitiveness work over long-term
Strategy 1:
Strengthen regional business growth and attraction
Strategy 2:
Enhance regional talent development
Strategy 3:
Spur regional planning and gov’t efficiency
Strategy 4:
Shape and sustain regional leadership for economic competive-ness priorities
Strategy 5:
Educate, engage, empower “influencers” to participate and support work
Specific Phase 3 Objectives
• Economic PerformanceAttract $750 million in venture capitalAttract $300 million in research/
commercialization capital in target industriesIncrease payroll by $125 million: $30 million at
minority firmsGenerate $100 million in growth and
expansion capital (facility expansions and enhancements
15
Specific Phase 3 Objectives
• Sustaining Growth Increase by 70,000 the number of adults
pursuing education certificates/degreesImprove employer understanding of and
satisfaction with the talent system over 2009 base
Implement plan to share new revenue growth in the majority of Northeast Ohio
Implement 10 new government collaborations generating $10 million in annual efficiencies
16
Specific Phase 3 Objectives
• Cultural Change Establish regional champions with the
capacity to lead and organize the region’s response for economic competitiveness within the four areas of Advance Northeast Ohio
Work with partners in business, government, civic and other sectors to build support for these champions to sustain the work of regional economic competitiveness
17
Phase 3 Structure: What Stays the Same
• Three-year member/owner model• Funders Committee as decision making unit with
continued Steering Committee coordination• Three-year phase with minimum of $100,000 to be a
voting member (one member/one vote)• Bulk of the work done through action teams organized
around Advance Northeast Ohio• Possible new initiatives brought to the Fund by its
members through the action teams – no unsolicited proposals
18
Phase 3 Structure: Possible Modifications
Legal Structure• Fund will incorporate and apply to become a
separate 501(c)(3). Resolves administrative strains the current model
places on its long-time administrative “parent” in The Cleveland Foundation
Deepens the region’s sense that there is indeed a broad-based collaborative that is focused solely on the advancement of regional competitiveness
19
Phase 3 Structure: Possible Modifications
Grantee Relations• All Fund grantees will be allowed to approach Funders individually.
20
Phase 3 Structure: Possible Modifications
Designation of Funds• The Fund continue to encourage undesignated
funds because the vast majority of funders have asserted that this practice: Will enhance the value of the collaborative decision-
making Will greatly simplify the Fund’s administrative functions. In the spirit of collaboration, the Funders Committee may
make exceptions to this rule on a case by case basis taking into account individual facts and circumstances.
21
Financial Planning Principles• Phase 3 operations/grant making planning
to be based on $22 million in contributions– Continue to allocate bulk of grant dollars to industry-
building grantees
– Maintain significant allocation to convening, communications and research efforts
– Success is heavily dependent on active participation of Fund members; however availability of loaned staff has decreased significantly and that is reflected in paid staff levels for both Fund operations and ANEO support
– Plan for slightly higher costs: financial admin, space, President’s salary (5.5% of overall budget)
22
Grant Dollar Allocation
Supporting
ANEO
3%Government
7%
Talent6%
Business Growth and Attraction
84%
Supporting ANEO
5%To be
determined5%
Government, 6%
Talent13%
Business Growth and Attraction
71%
Phase 2 YTD Grantmaking
Budget: $24,820,000
Phase 3 Proposed Grantmaking Budget: $20,700,000
Staff Time Allocation
Supporting ANEO44%
Government14%
Talent16%
Business Growth and Attraction
26%
Supporting ANEO27%
Government18%
Talent19%
Business Growth and Attraction
36%
Phase 2 Phase 3
Business Growth and Attraction &
Talent 82%
Resource Allocation – Phase 3 100% = $22.1 million
Entrepreneurship & Innovation
44%
BARE25%
Talent 13%
Government Collaboration
7%
Supporting ANEO7%
To Be Developed4%
"Indirect" WorkBy CoreGrantees
Staff TimeAllocation
Direct Grants
$2,850
$372
$2,000
$165
Phase 2 Phase 3
% of Total Resources
8% 13%
Inclusion Resources - Phase 2 to Phase 3
100% = $1.5mm $5.5mm $9.7mm $2.9mm $1.6mm $1.05mm
Resource Allocation Within Action Areas – Phase 3
26%
61%
13%
SupportANEO
95%
5%
97%
3%
70%
21%
9%
16%
19%
65%
4%0
$1 mm
$2 mm
$3 mm
$4 mm
BARE ENTP Talent GOVT TBD
TBD
Research
Communication& Engagement
New Grantees
Action TeamSupport
ExistingGrantees
$5 mm
$6 mm
$7 mm
$8 mm
$9 mm
$10 mm
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