EDI Strategic Planning 2 Mar 2010 Indianapolis
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Transcript of EDI Strategic Planning 2 Mar 2010 Indianapolis
Advanced Strategic Planning 2
Ed MorrisonEconomic Development Institute
IndianapolisMarch 2010
http://edi-strategy.net/join
Invitation Code: edi
Slides and other materials are available here:
3
Outline of the Course
• Overview of Strategy
• Phase 1: Defining a “Plan for the Plan”
• Phase 2: Assessing Your Options
• Phase 3: Making Choices
• Phase 4: Implementing, Measuring, Updating
• Characteristics of Effective Strategy
4
Start at the beginning: Economic development in a
nutshell
Overview
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Why telling stories makes a difference...
This is how you set your directions with strategy
Overview
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Prosperous stories create a “buzz”
Overview
7
Negative stories become self-fulfilling
Overview
8
Outline of the Course
• Overview of Strategy
• Phase 1: Defining a “Plan for the Plan”
• Phase 2: Assessing Your Options
• Phase 3: Making Choices
• Phase 4: Implementing, Measuring, Updating
• Characteristics of Effective Strategy
Plan for the Plan
Define Options Research: Quantitative Analysis
Strategy: Make Choices(usually includes public comments)
Execute: Implement, Measure, Revise
Phase 1 Phase 2 Phase 3 Phase 4
A Traditional Strategic Planning Process
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1. Developing a core team
2. Defining your region
3. Developing a budget and governance
4. Defining your "stakeholders"
5. Defining a communications strategy
6. Compiling an initial strategic agenda
7. Defining a process and timeline
Phase 1: Defining A Plan for the Plan
Phase 1: Defining a Plan for the Plan
New approaches to defining a core teamTraditional View Emerging View
Centralized Distributed, Shared
Single Leader Many Leaders
Command and control Link and leverage
Lead from the front Lead from the front or rear
Phase 1: Defining a Plan for the Plan
Emerging roles of leadership in a core team
Network Leader Role
Responsibilities
Conveynor Creates neutral space
Connector Links people and assets
Civic entrepreneur Sees new opportunity
Guide, Mentor Maps a complex process
Strategist Reveals larger patterns
Phase 1: Defining a Plan for the Plan
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• Purpose: Why? What’s the purpose?
• Media markets
• Commuting Patterns
• Cluster Anchor Linkages
• Affinities: Mind Share
Defining Your Geographic Scope
Phase 1: Defining a Plan for the Plan
Exercise: What’s the Bluegrass?
Phase 1: Defining a Plan for the Plan
Phase 1: Defining a Plan for the Plan
16
Budget Components
‣ Research: Professional Fees
‣ Research: Data Acquisition, GIS
‣ Facilitation: Professional Fees
‣ Facilitation: Meeting expenses
‣ Consulting
‣ Communications: Print and web design
‣ Other communications
‣ Travel
‣ Validation: Fund raising
Phase 1: Defining a Plan for the Plan
Inspiration.com
Mapping stakeholders
Phase 1: Defining a Plan for the Plan
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Communications Plan Components
‣ Audiences
‣ Key Message points
‣ Channels
‣ Products
‣ Frequency, Reach
‣ Budget
Phase 1: Defining a Plan for the Plan
Mapping a process: Simple
Phase 1: Defining a Plan for the Plan
Mapping a process: More complex
Phase 1: Defining a Plan for the Plan
Mapping a process: About Right
Plan for the Plan
Define Options Research: Quantitative Analysis
Strategy: Make Choices(usually includes public comments)
Execute: Implement, Measure, Revise
Phase 1 Phase 2 Phase 3 Phase 4
Phase 1: Defining a Plan for the Plan
Outline of the Course
•Overview of Strategy
•Phase 1: Defining a “Plan for the Plan”
•Phase 2: Assessing Your Options
•Phase 3: Making Choices
•Phase 4: Implementing, Measuring, Updating
•Characteristics of Effective Strategy
Phase 1: Defining a Plan for the Plan
Phase 2: Assessing Options
‣Using Data to Tell a Story
‣Analytic Tools
Phase 2: Quantitative Analysis
•Analog: Quantitative: People, Businesses and Places
•Digital: Qualitative: Surveys, Interviews, Focus Groups
•Think about the structure of the story from Day 1
Using Data to Tell a Story
Phase 2: Quantitative Analysis
Study what others are doingPhase 2: Quantitative Analysis
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Santa Fe
Phase 2: Quantitative Analysis
27
London, UK
Telling a Story
Some Big Picture Themes
• Is our population growing: | Population
•Are we producing jobs? | Employment
•Are we generating income? | Income
This story, although helpful, only sets the stage
Phase 2: Quantitative Analysis
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Drawing a clear pictureTactic 1: Use benchmark
communities to measure progress
Phase 2: Quantitative Analysis
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Drawing a clear pictureTactic 2: Use growth rates in wage
and salaried employment
Phase 2: Quantitative Analysis
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Drawing a clear pictureTactic 3: Use index to compare
employment growth
Phase 2: Quantitative Analysis
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Navy base closes
Charleston forms a regional alliance
Phase 2: Quantitative Analysis
The story of Oklahoma City in 1 slidePhase 2: Quantitative Analysis
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• Brainpower
• Education and training
• Research
• Innovation
• Entrepreneurship and business development networks
• Physical infrastructure
• Connectivity
• Attractions
Drawing a clear pictureTactic 4: Mapping Your Assets (on
maps)
Phase 2: Quantitative Analysis
Phase 2: Quantitative Analysis
✓ Demographic Indicators
✓ Workforce Indicators
✓ Business Indicators
✓ Economic Base Analysis
✓ Capacity Analysis
✓ Benchmarking Competitors
Checklist of Quantitative AnalysisPhase 2: Quantitative Analysis
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• Traded business (economic base) analysis | Cluster analysis
• Local business analysis: Retail capture and leakage
• Location quotients
• Shift share
• SWOT
• Social Network Analysis
• Regional Asset Mapping
Analytic Tools You Can Use
Phase 2: Quantitative Analysis
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• Identification: Secondary data and location quotients
• Identification: Interviews and focus groups
Traded businesses and clusters generate wealth: Your Economic
Base
Tip: Institute for Strategy and Competitiveness: Competitiveness Data ($) http://www.isc.hbs.edu/
Phase 2: Quantitative Analysis
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• Trade area potential
• Retail leakage
• Transformation to a traded cluster: tourism connection
Local businesses circulate funds and build the unique character of
the region
Tip: Plugging the Leaks: http://www.pluggingtheleaks.org/
Phase 2: Quantitative Analysis
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Location Quotients and Shift Share Analysis compare your economy (county/region) to a reference
economy (usually state or national)
• Two tools to identify your regional strengths
• Location Quotients: Helps you identify areas of specialization in your economy relative to a reference economy. Focus on employment.
• Shift Share Analysis: Helps you spot stronger sectors relative to a reference economy. Focus on job growth.
Phase 2: Quantitative Analysis
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Location quotients measure relative employment concentration
• A simple way to figure out where your economy is specialized
• A location quotient is a ratio comparing the local percentage of employment in a sector to the national percentage of employment in that sector
• It is a measure of relative concentration
• A location quotient > 1 indicates an area of relative strength
Your region is more specialized than the nation as a whole
Phase 2: Quantitative Analysis
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Calculating a Location Quotient
Phase 2: Quantitative Analysis
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BLS Location Quotient Calculator
• You can use a Bureau of Labor Statistics Location Quotient Calculator:
• The BLS LQ calculator uses the quarterly survey of wages and employment (establishment data) to calculate LQs for any state or county in the U.S.
• Try it:
• http://data.bls.gov/LOCATION_QUOTIENT/servlet/lqc.ControllerServlet
Phase 2: Quantitative Analysis
Shift Share Analysis•Answers these questions
• Have industries within the community grown faster than their national counterparts over time?
• Has community growth over time been due to national trends or to improvements in competitive position?
•Employment change = National growth + Industry share + Competitive share
•Provides indication of future growth assuming no change in key factors currently impacting growth
Phase 2: Quantitative Analysis
45
Shift Share: Breaks down growth into three components
Source: Georgia TechTip: Georgia Tech Course on Economic Development Analysis: http://cherry.iac.gatech.edu/6602/xschedule.htm
Phase 2: Quantitative Analysis
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Shift Share: Breaks down growth into three components
Source: Georgia TechTip: Georgia Tech Course on Economic Development Analysis: http://cherry.iac.gatech.edu/6602/xschedule.htm
Phase 2: Quantitative Analysis
47
Shift Share: Breaks down growth into components
Source: Georgia TechTip: Georgia Tech Course on Economic Development Analysis: http://cherry.iac.gatech.edu/6602/xschedule.htm
Phase 2: Quantitative Analysis
SWOT: An Organizing Framework
Source: Angelou Economics
Phase 2: Quantitative Analysis
Phase 2: Quantitative Analysis
Phase 2: Quantitative Analysis
Converting analog to digital
Neil Reid, Ph.D., and Michael C. Carroll, Ph.D., "Structuring a Successful Greenhouse Cluster in Northwest Ohio", The IEDC Economic Development Journal, Fall, 2006
Phase 2: Quantitative Analysis
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Social network analysis helps you understand connections
Tip: The Tipping Point
Phase 2: Quantitative Analysis
Which region is stronger?
Phase 2: Quantitative Analysis
Tip: Council on Competitiveness Guidebook available on http://edi-strategy.net
Phase 2: Quantitative Analysis
Phase 2: Quantitative Analysis
Start at: http://www.econdata.net
Finding Data: Start here....Phase 2: Quantitative Analysis
Finding Data: And here....
http://quickfacts.census.gov/qfd
Courtesy: Ed Morrison & Tim Chase
Phase 2: Quantitative Analysis
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Cluster Maps from Institute for Strategy and Competitiveness
http://www.isc.hbs.edu/
Phase 2: Quantitative Analysis
Purdue Center for Regional Development, Indiana Business Research Center and Strategic Development Group Inc. published a new set of tools this month.This is a great resource for anyone trying to define a regional cluster.
http://www.statsamerica.org/innovation/
Regional Clusters and Innovation
Phase 2: Quantitative Analysis
•Step 1: Define your message
•Step 2: Be clear on the comparison
•Step 3: Choose a chart type
Drawing Charts: Use Each Chart to Tell a
Part of Your Story
Phase 2: Quantitative Analysis
•Be clear and concise about the message
•Focus on the aspect of the data you want to emphasize
•Put the message at the top of the graph
Defining the Message
Phase 2: Quantitative Analysis: Drawing Charts
What’s the message?Phase 2: Quantitative Analysis: Drawing Charts
What’s the message?Phase 2: Quantitative Analysis: Drawing Charts
What’s the message?Phase 2: Quantitative Analysis: Drawing Charts
What’s the message?Phase 2: Quantitative Analysis: Drawing Charts
What’s the message?Phase 2: Quantitative Analysis: Drawing Charts
Outline of the Course
• Overview of Strategy
• Phase 1: Defining a “Plan for the Plan”
• Phase 2: Assessing Your Options
• Phase 3: Making Choices
• Phase 4: Implementing, Measuring, Updating
• Characteristics of Effective Strategy
Phase 3: Making Choices
A process view of strategyPhase 3: Making Choices
Phase 3: Making Choices: A Portfolio View
Potential criteria
•Risk
•Return
•Time frame
•Co-investment, leverage
•Sustainability
•Replicability, scalability
Outline of the Course
•Overview of Strategy
•Phase 1: Defining a “Plan for the Plan”
•Phase 2: Assessing Your Options
•Phase 3: Making Choices
•Phase 4: Implementing, Measuring, Updating
•Characteristics of Effective Strategy
Phase 4: Implementing, Measuring Updating
Phase 4: Implementing, Measuring Updating
Outline of the Course
•Overview of Strategy
•Phase 1: Defining a “Plan for the Plan”
•Phase 2: Assessing Your Options
•Phase 3: Making Choices
•Phase 4: Implementing, Measuring, Updating
•Characteristics of Effective Strategy
How do we know we have succeeded? (are
succeeding?)•Co-investment (Sustainability)
•Network size and density of connections
• Initiatives that are replicable, scalable, sustainable
Appendix
Why Look at Occupation Clusters?
• It is generally accepted that US regional economies must transition to a
• knowledge-based economy so as to remain competitive in the global• context.
• Insight into occupation clusters is critical to • creation of a knowledge economy in rural rural • regionsregions - identify and map nationally.
Experts such as Feser and Markusen have both made the case for targeting occupations as well as industries in regional economic development efforts.
Utility of Occupation Clusters
Understand the local workforce and educational situation within the broader regional economic development context
Use information in bridging the gap between workforce and economic development when constructing a regional economic development strategy
Use local and regional occupational cluster mix to diagnose how well positioned the region and its communities are to participate effectively in a knowledge-based innovation economy
Determine how well occupation and knowledge cluster strengths align with the region’s business and industry cluster strengths
Fifteen Occupation Clusters
The study will focus mainly on the 15 “knowledge-based” clusters:
Next Steps in the Cluster Analysis
Definition of knowledge-based clusters for every US county (3,140 counties).
Location of the clusters on GIS based maps, showing cluster size and concentration (location quotients).
Change in clusters over time. In-depth study of cluster composition and characteristics in YOUR
region. Analysis of Industry Cluster Specific Occupation Clusters (ICOC
clusters) – a new method that we are testing to determine the concentration of occupation clusters within a specific industry cluster. This will help determine the functionality of specific industry clusters (for example, R&D versus Production emphasis in a particular geography).
Each product will be made available for evaluation by pilot region stakeholders.
Sample Cluster Maps for EGR 11
Sample Cluster Maps for EGR 11
EGR 11 Occupation Cluster Chart
EGR11 Leading Clusters
Skilled Production Cluster - Detail
Engineering and Related Sciences Cluster - Detail
The O*NET® Content ModelDetailed OutlineThe Content Model is the conceptual foundation of O*NET. The Content Model provides a framework that identifies the most important types of information about work and integrates them into a theoretically and empirically sound system.
Health Care Occupation Cluster - Detail
Health Care Occupation Cluster - Detail
Health Care Occupation Cluster - Detail
Discussion and Questions
• Contacts for further information:
• Sam Cordes – [email protected] (Overall project)• Christine Nolan – [email protected] (Occupation clusters)• Jerry Conover – [email protected] (Innovation Indicators)• Mark Drabenstott – [email protected] (Investment tools)• Scott Burgins – [email protected] (Stakeholder participation model)
• Project Website for viewing maps, Industry Cluster report, county and region cluster tool: http://www.ibrc.indiana.edu/innovation/