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

5

Why telling stories makes a difference...

This is how you set your directions with strategy

Overview

6

Prosperous stories create a “buzz”

Overview

7

Negative stories become self-fulfilling

Overview

8








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

10

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


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


13

• Purpose: Why? What’s the purpose?

• Media markets

• Commuting Patterns

• Cluster Anchor Linkages

• Affinities: Mind Share

Defining Your Geographic Scope


Exercise: What’s the Bluegrass?



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


Inspiration.com

Mapping stakeholders


18

Communications Plan Components

‣ Audiences

‣ Key Message points

‣ Channels

‣ Products

‣ Frequency, Reach

‣ Budget


Mapping a process: Simple


Mapping a process: More complex


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



•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 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


Study what others are doingPhase 2: Quantitative Analysis

26

Santa Fe


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


29

Drawing a clear pictureTactic 1: Use benchmark

communities to measure progress


30

Drawing a clear pictureTactic 2: Use growth rates in wage

and salaried employment


31

Drawing a clear pictureTactic 3: Use index to compare

employment growth


32

Navy base closes

Charleston forms a regional alliance


The story of Oklahoma City in 1 slidePhase 2: Quantitative Analysis

34

• 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)



✓ Demographic Indicators

✓ Workforce Indicators

✓ Business Indicators

✓ Economic Base Analysis

✓ Capacity Analysis

✓ Benchmarking Competitors

Checklist of Quantitative AnalysisPhase 2: Quantitative Analysis

37

• 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


38

• 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/


39

• 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/


http://www.pluggingtheleaks.org/

40

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.


41

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


42

Calculating a Location Quotient


43

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


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


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


http://cherry.iac.gatech.edu/6602/xschedule.htm

46

Shift Share: Breaks down growth into three components



http://cherry.iac.gatech.edu/6602/xschedule.htm

47

Shift Share: Breaks down growth into components



SWOT: An Organizing Framework

Source: Angelou Economics




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


52

Social network analysis helps you understand connections

Tip: The Tipping Point


Which region is stronger?


Tip: Council on Competitiveness Guidebook available on http://edi-strategy.net


http://edi-strategy.net/


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


58

Cluster Maps from Institute for Strategy and Competitiveness

http://www.isc.hbs.edu/


http://www.isc.hbs.edu/

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


http://www.statsamerica.org/innovation/

http://youreconomy.org


http://youreconomy.org/

•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


•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












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








Phase 4: Implementing, Measuring Updating

Phase 4: Implementing, Measuring Updating








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



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/

mailto:[email protected]





http://www.ibrc.indiana.edu/innovation/

Documents

EDI Strategic Planning 2 Mar 2010 Indianapolis