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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
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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
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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 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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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
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
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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
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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
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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/
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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. 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
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Sample Data for Step ThreeKey Programs for R&E:
Additive Manufacturing TrainingBattery 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
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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
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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.PresidentStrategic Development Group, Inc.
www.sdg.us1-800-939-2449trichey@sdg.us