How Metics Will Save Economic Development

How Metrics will Save Economic Development

Presented by

Your Hosts

Ben Wright CEO, Atlas Advertising

[email protected] www.twitter.com/atlasad

Guillermo Mazier Director,

Strategic Accounts, Atlas Advertising

[email protected] www.twitter.com/atlasad

Tim Terrentine, Vice President

Southwest Michigan Frist

Presenting From Elkhart, Indiana

2009

2014 – Unemployment rate

About Atlas

Atlas Advertising helps economic developers reach national and international prospect and site selection audiences. We deliver branding, website development, GIS mapping, research, social media, and creative services professionally and with a staff experienced in economic development. Unlike firms with little or no economic development experience, Atlas Advertising uses a proven mix of economic development marketing tactics that generate interest from site selection audiences.

Atlas Advertising is led by a former economic development practitioner and has worked with 140+ different economic development clients in 43+ states. Our approach and experience means that our campaigns generate an average of three to ten times the response of other campaigns.

Featured clients include:

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Outline

1.  Introductions

2.  Metrics Context – The Trouble with Metrics

3.  3 Organizations That are Succeeding with Metrics

4.  3 Things That Organizations Can do More of

5.  Metrics Case Study: Southwest Michigan First

6.  ED 101 for your board

7.  Wrap up/Questions

That which is measured improves.

That which is measured and reported

improves exponentially.

Karl Pearson

Metrics Context

Over 50% of EDOs Don’t TRACK

their performance

80% of “Non Trackers” have considered metrics at one

point

Most widely used metrics: Jobs, Capital Investment, Tax Base, Personal Income

300 menu of metrics provided by the

IEDC

Nearly 2/3rds of EDO’s evaluate their performance

Lack of accurate

data

The Challenges of Metrics

No Standardized

reporting system

Pressure to show big

wins

Our board misinterprets the

data

If we live by just jobs, do we die by jobs

Time to report data

Measuring ROI

Need More Funding? Why Not Use Metrics? “As with many other large corporations, we believe we have a responsibility to a wide scope of stakeholders—to invigorate the economy and address significant social and environmental problems in the communities where we live and work. And as one of the largest financial services companies in the world, we feel uniquely positioned to deliver on this responsibility: to use our strength, global reach, expertise and access to capital to support our clients and communities and invest in them.”

Amy Bell, Executive Director and Head of Principal Investments for J.P. Morgan’s Social Finance business unit.

Biggest Trend and Need for Metrics – Impact Investing

3 Things Chase Invests in and has metrics for: 1.  Education = Test scores

2.  The Arts = Engagement, memberships, visits

3.  Economic Development = NONE

Nashville Organizations are Adapting to Today’s Competitive Landscape: Recruiting Workforce

Greater MSP - Organizations are Setting Big, Hairy, Audacious Goals

Columbus 2020 - Organizations are Exhibiting an “If Not Us, Then Who” Mentality

3 Organizations that are succeeding with Metrics

WE ARE SETTING A BOLD COURSE

1)  Return our rate of job growth to be above national average

2) Job growth to meet or exceed peer competitor regions

3) Provide significant ROI for investors

15

A TOTAL INCREASE OF 100,000 NEW JOBS

2012 2016

100,000 new jobs

Margin of excellence

Projected regional job growth

25% Margin of Excellence

http://www.slideshare.net/Columbus2020/columbus-region-economic-update-2014-april

http://www.nashvillechamber.com/Homepage/AboutUs/AnnualReports.aspx

Economic Developers are Slow to Adopt Digital Tactics

There is Too Much Discussion About Whether or Not Economic Developers are Essential

The Spread Between High Performing and Low Performing Organizations is Staggering

200+146

175

Communities shared their data

Average number of conversations per organization in the last 12 months

$234million

Average capital investment per community in the last 12 months

Website visits per conversation

1,293

15

Average jobs announced per organization, last 12 months

Value of a conversation, in number of jobs

The Surprising EconomicsOF ECONOMIC DEVELOPMENT ORGANIZATIONS

>> 10 << >> 11 <<

200+146

175

Communities shared their data

Average number of conversations per organization in the last 12 months

$234million

Average capital investment per community in the last 12 months

Website visits per conversation

1,293

15

Average jobs announced per organization, last 12 months

Value of a conversation, in number of jobs

The Surprising EconomicsOF ECONOMIC DEVELOPMENT ORGANIZATIONS

>> 10 << >> 11 <<

Fact about digital economic development:

Budget Level LOW JOBS ANNOUNCED, 2012

HIGH JOBS ANNOUNCED, 2012

Under $100,000 20 243

$100,000 to $249,000 2 1,500

$250,000 to $499,000 5 5,000

$500,000 to $999,000 4 4,283

$1,000,000 to $2,500,000 35 8,000

Over $2,500,000 6 16,835

Source: Atlas Report - Why Metrics Matter, 2013

Average difference:

978x

A Case Study on Metrics: Southwest Michigan First

"The person who says it cannot be done should not interrupt the person doing it.” - Chinese Proverb

Tim Terrentine, Vice President

catalytic counting SOUTHWEST MICHIGAN’S ACCOUNTABILITY TO ECONOMIC GROWTH

Governor Snyder’s statewide initiative in 2011 to provide more access to capital, assistance for existing companies and program development joined the seven counties of Southwest Michigan together. Southwest Michigan First engaged with more than 1,000 leaders to elevate economic development in our region and help determine our strategy.

Why are we here?

Who are we as a region?

778,384 People

Source: U.S. Census Annual Estimates, 2011


Source: Michigan Department of Labor and Economic Growth, July 2013, Unemployment – Not Seasonally Adjusted

343,074 Jobs


Source: National Center for Education Statistics | Integrated Postsecondary Education Data System, Fall 2012

56,421 College Students


Source: U.S. Department of Commerce, U.S. Census Bureau, Private Non-Farm Establishments, 2011

15,875 Companies


Source: Individual County Data

186 Cities, Townships & Villages


74 School Districts

Source: Michigan Department of Technology, Management & Budget, Michigan School Districts and Intermediate School Districts Map


19 Economic Development Groups

Source: Individual County Data


7 Counties

Source: State of Michigan Map


5 Community Colleges



3 Private Colleges & Universities



1 Research University


q  Commitment (Follow the why)

q  Conviction (Core and enabling)

q  Context (Short term, long term)

q  Consistency in Capturing –  W.E. Upjohn Institute Relationship

q  Communication –  Different strokes for different folks

Building a culture of accountability requires:

√ √ √ √

√

Establish a reporting system that works for you

Keeping score

What We Measure

Internally

What We Measure

Externally

REGIONAL 2022 GOALS | snapshot scorecard

Business Growth

Vital Urban Cores

Capital Formation

Education

Local Government

Unemployment People New & Accelerated Companies New Jobs Household Income

New Capital Growth

Urban Anchor Projects Urban New Investment Residents in Urban Cores Earning $50,000+

Annual Internships Number of College Grad Citizens

Top 10 Governments Achieve Financial Stability Community Satisfaction

Bureau of Labor Statistics U.S. Census Southwest Michigan Partners Bureau of Labor Statistics American Community Survey

Southwest Michigan First

Southwest Michigan First Southwest Michigan First American Community Survey

Southwest Michigan First American Community Survey

Plante Moran Gallup-Healthways Well-Being Index, State of Well-Being, 2011

5.2% 850,000 100 47,767 $62,520

$500,000,000

8 $200,000,000 60%

2,000 Top 100

TBA Top 20%

7.8% (10/13) 778,384 83 10,540* $45,005

$35,046,500

2 $30,500,000 32%

45 #216

TBA Top 40%

9.2% (12/11) 778,384 46 -2,276 $45,005

$30,846,500

0 $0 32%

45 #216

TBA Top 40%

01.01.2013 11.30.2013 2022 Goal Source

The greatest force for change is a job

6,244 direct jobs 9,336 indirect jobs 15,560 total jobs

$1.17 billion in new investment

159 2012+2013 announcements

What We Measure

Relationships

What We Measure

Community | Quality of Life

ECONOMIC DEVELOPMENT 101 - FREE DRAWING

1.  How to use metrics to lead and educate others in your community 2.  How to use modern commuications to engage stakeholders and

prospects

Question for Tim: Whats the conversation like with your board when you are behind

with your metrics?

Question for Tim: Why did you initiate a metrics

program in the first place?

Get the report: http://www.slideshare.net/wright0405/atlas-high-performance-

economic-development-white-paper Take the survey to participate: http://atlas-advertising.com/

Community-Benchmarking-Study.aspx

Questions

Thank you! Contact information: 1128 Grant St Denver, CO 80203 Contact: Guillermo Mazier t: 303.292.3300 x 232 [email protected] www.Atlas-Advertising.com LinkedIn Profile | LinkedIn Group | Twitter | Blog | Slidespace

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