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Putting High Performance Economic Development into Practice: A Guide for Economic Development Leaders and their Boards | EDAC Performance Measurement in Economic Development Seminar
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Putting High Performance Economic Development into Practice: A Guide for Economic Development Leaders and Their BoardsPresented by
EDAC Performance Measurement in Economic Development Seminar
September 25, 2014
About Me
Ben WrightFounder and CEO
Atlas Advertising, Community Systems
[email protected]/atlasad
@BenWrightAtlas
– Former economic developer and tourism marketer for the Metro Denver EDC, and the City of Westminster, CO
– Degree in Quantitative Economics and Urban Studies from Stanford
– Worked for a British MP who focused on urban economic development, housing, and poverty in an inner London Borough
– Industry speaker, business attraction and marketing for economic development
Who is Atlas?1. Denver-based marketing services company, specializing in economic development
2. Founded in 2001, with 25 employees
3. Have worked with more communities than any other economic development marketing services firm in the past 10 years: 140+ economic development clients in 43 states and 6 countries
4. Specialize in providing branding, marketing planning, digital marketing, and GIS enabled websites, all for economic development
5. Pioneered the industry’s first metrics based benchmarking approach for marketing, business attraction, and business retention: High Performance Economic Development Marketing
6. IEDC’s High Performance Economic Development Marketing Partner
7. Frequent public speaker and lead speaker on benchmarking marketing, business attraction, and business retention programs, as well as on branding, research, digital marketing, websites, and GIS.
Who is Atlas? 25 people dedicated to creating community vitality.
How do we help you engage investors, stakeholders, and partners?
1. Partner workshops and charrettes
2. One on one stakeholder interviews
3. Large scale stakeholder and investor events
4. Featured companies and investor programs
5. Collaborative prospect response software with ED partners
6. Public metrics dashboards
Our clients generate superior results and make a greater impact on their communities
About Atlas’ High Performance Economic Development Program 1. Initially developed High Performance Economic Development (HPED) to answer
questions from clients “What should our goals be?”
2. HPED, in its third year, is now the the largest and longest running collection of marketing, business development, and business retention metrics available.
3. Hundreds of EDO’s have used the data to benchmark their marketing, business recruitment and retention efforts and outcomes that can prove ROI for marketing, branding and website efforts within economic development space.
4. On Monday October 6, Atlas will launch High Performance Economic Development Online, an interactive benchmarking tool that will allow EDO’s to enter their data and benchmark their business recruitment and retention outcomes by organizational staff size, budget, community population, region, or any combination of these factors.
View the slides, continue the dialogue • Continue the Conversation:
– Follow us on Twitter: www.twitter.com/AtlasAd
– Tweet questions using hashtag #ASKATLAS
– Join High Performance Economic Development LinkedIn Group
• View and share the slides with your colleagues (available now): www.slideshare.com/wright0405
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What we will cover
1. Who is Atlas? 2. Two comments about change3. The History, Challenges, and Rationale of High Performance
Economic Development 4. Defining High Performance5. Our Analysis of the Data6. How Canada and the Rest of the Sample Compare 7. Profiles of High Performing Communities 8. How to Put High Performance into Practice9. Questions10.How to Get Your Community’s Report11.Exercise: Deciding what type of organization you are, and what
position you will play
Two Comments about Change
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ought
Start
er
Heraclitus of Epheseus, 535 BC – 475 BC
Ronnie Bryant?Albert Einstein?
Steve Jobs?
Jack WelchFormer Chairman andCEO of General Electric
The History, Challenges, and Rationale of High
Performance Economic Development
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History of High Performance Economic Development Methods 1. EDO’s have been measuring their performance for years
2. However, with differing viewpoints, metrics have gotten muddy, and misunderstood
3. In 2011, Atlas put together it’s first survey of EDO outcomes, to assist EDO’s in planning their marketing, business attraction, and business retention programs
4. In 2014, IEDC published its “Making it Count” Metrics for High Performing EDO’s
Challenges to High Performance: Why hasn’t this been done before?1. There is an ongoing debate about the tools that EDO’s use to recruit and retain
companies (incentives), which is really a critique of the value of the procession
2. EDO’s service companies that comprise a very small percentage of their economies.
3. Often, economic developers are the only ED professional / organization in their community, and work on economic development tasks with non-economic developers.
4. Economic development projects have a long lead time to show results.
5. EDO’s and EDO governing boards have multiple, and often ever changing priorities.
6. Each stakeholder defines high performance differently.
EDO’s service companies that comprise a very small percentage of their economies.
186 < 25,000Average companies Served
Typical number of establishments in
a community
Often, economic developers are the only ED professional / organization in their community
Economic development projects have a long lead time to show results.
Company evaluates business
and creates
plan
Company evaluates locations
Company contacts/evaluates finalist
communities
Company makes
and announces decision
Expansion and
relocation real estate
project executed
Company hires staff
Community feels/ realizes impact
1-5 Years
EDO’s and EDO governing boards have multiple, and often ever changing priorities.
Workforce
Entrepreneurship
Business Attraction
Business Retention
Partner outreach
Investor relationsMarketing
Infrastructure
Each stakeholder defines high performance differently.
Internal Audiences Include:
1. Largest employers
2. Community partners
3. Elected officials
4. Business leaders
External Audiences Include
5. Prospective companies
6. Site selectors
How To Vote via TextingEXAMPLE
Poll Question:As a practitioner, how much do you think you impact the overall economic activity in your area?
Why We Believe that High Performance Economic Development is Critical1. The debate rages on: Should our
community fund economic development?
2. It is often required for fundraising
3. Elected officials won’t stop running on a jobs platform any time soon
4. Communities exist in comparison (competition) with other communities
“Economic development organizations increasingly operate under much tighter budgets at a time when the need for economic development programming is becoming more crucial to the continued vitality and competitiveness of a community.”
International Economic Development Council in “High Performing Economic Development Organizations,” 2011
Discussion:
What are the key differences between economic development in Canada and the United States?
Defining High Performance Economic
Development
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Gettin
g to a
core
set
of
met
rics
Defining High Performance
1. What corollaries are there in the world to measure performance?
2. Definitions provided by an international trade organization for economic development
3. The metrics that Atlas High Performance Economic Development focuses on, and our criteria for choosing them
4. Defining what High Performance means for each key audience
5. Should we measure outcomes or not?
Corollaries for High Performance
"That which is measured improves. That which is measured and reported improves exponentially.”
- Karl Pearson
International Economic Development Council in “Making it Count, Metrics for High Performing EDOs,” - 2014
Why do ED trade organizations believe the industry should measure itself?
Four Ways the International Economic Development Council Defines High Performance
1. Internal Segment (Employee satisfaction, funding sources
2. ED Program Segment (Business Attraction, Business Retention, Business Creation)
3. Relationship Management Segment (Relationships with internal and external stakeholders)
4. Community Segment (Community well being, in terms of demographics, )
Atlas High Performance Economic Development Focuses on the Relationship Management Segment, plus outcomes from those relationships.1. Internal Segment (Employee satisfaction,
funding sources
2. ED Program Segment (Business Attraction, Business Retention, Business Creation)
3. Relationship Management Segment (Relationships with internal and external stakeholders)
4. Community Segment (Community well being, in terms of demographics, )
Outcomes for jobs announced and capital investment announced)
The Metrics Included in the Atlas High Performance Economic Development Study
1. Visits to the community economic development website
2. Number of companies served (conversations with companies)
Relationship management
1. Jobs announced in the community
2. Capital Investment announced in the community
Outcomes
Atlas criteria for including a metric:
1. That is is not available from another party
2. That it is comparable from one community to the next
3. That one metric has a causal relationship on another metric: I.e. website visits drives conversations
4. That it includes data that enables business development and promotion focused agencies to benchmark their performance against similar communities.
Metrics that Atlas High Performance Economic Development Does Not Include, and How to Get Them
1. Internal Segment (Employee satisfaction, funding sources
2. ED Program Segment (Business Attraction, Business Retention, Business Creation)
3. Relationship Management Segment (Relationships with internal and external stakeholders)
4. Community Segment (Community well being, in terms of demographics, )
1. Do an employee survey, and audit public v private funding (internal)
2. Hire a consultant to benchmark your Business Attraction, Business Retention, Business Creation program
3. Relationship Management Segment (Relationships with internal and external stakeholders)
4. Benchmark workforce, cost of living, and household income against your peer communities, internally or with a consultant
Exploring IEDC’s Core Community Metrics to Identify High Performing Communities
IEDC Core Community Metrics
1. Business related metrics, including workforce, ratings, new business permits2. Housing metrics, including housing affordability, cost of living, property values
3. Quality of life, including broadband, median household income, crime rates
4. Public Transit, including commute times, access to mass transit
5. Trade and Tourism, including website and social media visits, exports, hotel vacancy rates
6. Environment, including energy incentives, energy use, sprawl, etc.
Defining High Performance by Audience
Internal Audiences
1. High Performance for largest employers
2. High Performance for community partners
3. High Performance for elected officials
4. High Performance for business leaders
External Audiences
5. High Performance for prospective companies
6. High Performance for site selectors
Board Members/Largest Employers: Chris Ciaccio1. Largest board member2. Company planning an expansion3. One of the largest employers in
the Bradenton, FL Area
Vice President of Marketing and Sales– IMG Performance
What Chris needs and doesn’t needWhat Chris Needs
• Access to elected officials• Access to incentive programs• To feel like his company is
valued • Help marketing the area to
attract world class talent• To know he is making a
difference in the community• Projects to work on and own
What Chris Doesn’t Need
• Demographics about the area• A good website• Generalized economic news• Long meetings that drone on
Elected Officials: Mayor John Lewis 1. Entrepreneurial 2. Active in support of economic
development3. Built extensive digital
communications team within Town
Former executive at Apollo Group, University of Phoenix
What Mayor Lewis needs and doesn’t needWhat Mayor Lewis
Needs
• Oversight into the direction of economic development programs
• An active, measured approach to communications
• Full access to projects and deals
• To show a return on budgeted activities
What Mayor Lewis Doesn’t Need
• To execute outbound recruitment marketing himself
• To be targeted using your website
Community Partners: Mike Freeman 1. Former economic developer2. Runs largest incubator in Fort
Collins 3. Works with 75+ companies per
year
CEO at the Rocky Mountain Innosphere, an incubator/accelerator in Fort Collins, CO
What Mike Freeman needs and doesn’t needWhat Mike Needs
• Low cost financing for his space
• Access to partners (Such as Colorado State)
• Investment from City of Fort Collins
• To be aware of ED services for his customers (financing, EZ credits, etc)
What Mike Doesn’t Need
• To be a part of City meetings• To have to go through tons of
reporting red tape
General Business Leaders: Carl Byers 1. Venture Capitalist 2. Never been engaged in economic
development 3. Likely thinks he knows what
economic development is
Venture Partner at Fidelity Biosciences
What Carl needs and doesn’t needWhat Carl Needs
• To know how economic development is relevant to him
• To know when to contact an economic developer
• To understand the difference between EDO and tax collector
What Carl Doesn’t Need
• To be sold on Boston as a good location for biotech
Site Selectors: Tracey Hyatt Bosman
1. Based in Chicago, IL2. Former economic developer 3. Specializes in renewable energy and
data centers
Midwest Practice Leader – Biggins, Lacy and Shapiro
What Tracey needs and doesn’t needWhat Tracey Needs• Contact information• Incentive programs• Tax rates• Recent announcements• Industry-targeted info• Map of your territory• Largest employers• Area colleges and universities
What Tracey Doesn’t Need
• General labor statistics• Secondary source wage
information• Real estate listings• Rankings• Distance to other major cities
Prospect CEOs: W. James McNerney
1. Based in Chicago, IL2. Has held positions at 3M, GE prior to
joining Boeing in 2005. 3. Company has a global supply chain,
with parts manufacture in dozens of countries
CEO and Chairman of the Board, The Boeing Company
What W James needs and doesn’t needWhat W James Needs• Fast response• Available property• Incentive programs• Tax rates• Commitment to long term
infrastructure• Access to area colleges and
universities• Information for relocating
employees • Supplier lists
What W James Doesn’t Need
• Overly technical incentive programs
• To be sold on the quality of life
• Distance to other major cities
Discussion: Should we use outcomes to measure
ourselves?
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Key m
etric
s
debat
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Our Analysis of the Data, 2012/2013
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Who participated
PROVINCE ORGANIZATION
ONChapleau Economic Development Corporation
AB Community Futures Alberta Southwest
ABNewell Regional Economic Development Initiative
MB Town of NeepawaON Tewatohnhi'sakthaBC LEDA
QCCentre Local de developpement Beauharnois-Salaberry
ON Town of Halton HillsNS City of Moncton - Economic DevelopmentAB County of Grande Prairie
ABLloydminster Economic Development Corporation
NL Town of Conception Bay SouthON Town of Oakville
ONCity of Vaughan, Economic Development Department
AB Alberta's Industrial Heartland Assoc.
2012: 197 Communities
2013: 208 Communities 6 Countries, 15 in Canada
Canadian Participants
The Framework: Business Attraction, Business Retention, and Marketing, 2012 Numbers
Sneak Peek at 2013 data: Tremendous variance in results Budget Level
Low Jobs Announce
d
High Jobs Announce
d
Low Capital
Investment
Announced
High Capital Investment Announced
Low Conversations
High Conversations
Under $100,000 12 852 $500,000 $442,000,000 10 214
$100,000 to $249,000
10 3,000 $150,000 $1,100,000,000 4 726
$250,000 to $499,000
15 7,000 $300,000 $4,500,000,000 2 600
$500,000 to $999,000
10 32,000 $235,000 $2,500,000,000 10 10,000
$1,000,000 to $2,500,000
10 11,278 $1,000,000 $1,000,000,000 10 4,000
Over $2,500,000
10 50,000 $1,500,000
$11,700,000,000
15 5,045
Sneak Peek: EDO Performance, benchmarked by population
POPULATION YEARLY WEB VISITS
INQUIRIES PAST 12 MONTHS
AVERAGE JOBS ANNOUNCED LAST 12 MONTHS
AVERAGE CAPITAL INVESTMENT ANNOUNCED LAST 12 MONTHS
Less than 25,000
2,474 80 193 $67,950,000
25,001 to 100,000
11,426 93 503 $81,773,363
100,001 to 250,000
24,864 133 1,120 $187,837,410
250,001 to 1,000,000
33,696 303 2,137 $379,538,874
1,000,000 to 2,500,000
102,913 319 3,679 $482,484,240
Over 2,500,000 71,051 800 14,604 $1,463,092,402
Average for all Sizes
27,063 186 1,882 $271,855,546
EDO Performance, benchmarked by staff size
STAFF SIZE AVERAGE YEARLY WEB VISITS
AVERAGE INQUIRIES PAST 12 MONTHS
AVERAGE JOBS ANNOUNCED LAST 12 MONTHS
AVERAGE CAPITAL INVESTMENT ANNOUNCED LAST 12 MONTHS
1 2,337 68 276 $37,334,722
2 to 3 14,350 106 672 $154,734,368
4 to 9 29,660 372 2,668 $277,386,479
10 to 19 75,592 381 2,477 $483,902,403
20 or more 69,517 324 11,258
$1,214,120,612
Average for all Sizes 27,063 186 1,882 $271,855,546
EDO Performance, benchmarked by budget
Budget Level AVERAGE YEARLY WEB VISITS
AVERAGE INQUIRIES PAST 12 MONTHS
AVERAGE JOBS ANNOUNCED LAST 12 MONTHS
AVERAGE CAPITAL INVESTMENT ANNOUNCED LAST 12 MONTHS
Under $100,000
932 47 181 $44,048,524
$100,000 to $249,000
5,363 82 378 $75,655,476
$250,000 to $499,000
15,127 93 614 $186,704,037
$500,000 to $999,000
19,317 236 1,483 $215,056,038
$1,000,000 to $2,500,000
27,130 293 1,707 $230,341,735
Over $2,500,000
78,591 279 5,471 $657,938,155
Average for all Sizes
27,063 186 1,882 $271,855,546
Who are the highest performers in terms of jobs, and other categories?
Relea
sed
Octob
er 2
1
How Canada and the Rest of the Sample Compare
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Wha
t abou
t
Us?
EDO Performance, Canada Vs. Sample
POPULATION YEARLY WEB VISITS
INQUIRIES PAST 12 MONTHS
AVERAGE JOBS ANNOUNCED LAST 12 MONTHS
AVERAGE CAPITAL INVESTMENT ANNOUNCED LAST 12 MONTHS
Average for Canadian
respondents, 2013
5,605 162 479 $137,470,833
Average for all Sample, 2012
27,063 186 1,882 $271,855,546
Poll Question:Did your organization set measurable goals for your marketing, business development, and business retention programs this year (2014)?
Profiles of High Performing Communities
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e
Studie
s
Loudoun County, VA
Leadership: BUDDY RIZER, Director
Geography: A 520-SQUARE MILE SUBURB
OF WASHINGTON, DC.
Catalyst initiative in 2013: The retention
of the Telos Corporation, which represented a $5
million investment and 460 jobs
Inspiration: Loudoun Virginia is one of the
most dynamic places in the country...always
among the fastest growing in population and
jobs, a top technology location, and home to a
great international airport.
Southwest Michigan FirstLeadership: Ron Kitchens, CEO
Geography: Southwest Michigan comprised of the counties of Berrien, Branch, Calhoun, Cass, Kalamazoo, St. Joseph and Van Buren and representing more than 780,000 community members.
Catalyst initiative in 2013: Our team believes in an open information strategy, meaning that we want to be the teaching hospital version of an economic development corporation
Inspiration: When I was just four years old, tragedy struck our family when my father was killed in an accident at work, leaving my mother as a nineteen-year-old widow with two sons, ages four and two. Oftentimes, food was hard to come by, meaning endless meals of rice and beans. One Christmas gift from a Church food basket—mandarin oranges—that I hid in my desk, became my personal symbol of education and escaping poverty. Today I still keep one, as my daily reminder of my responsibility to create positive change by brining jobs to my community.
City of St. Cloud, MNLeadership: Cathy Mehelich, Economic Development Director
Geography: City of St. Cloud, Minnesota.
Catalyst project in 2013: Expansion of New Flyer of America – World leader in manufacturing of heavy-duty transit buses. Creation of 136 new jobs through expansion of company’s new Midi-bus production line.
Inspiration: My passion is driven by a strong desire to help businesses growth and succeed by understanding and anticipating their unique needs, effectively connecting them to resources, and efficiently facilitating the city development process.
Questions/Discussion
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Steps to Put High Performance into Practice1. Discuss your organizational priorities for marketing,
business recruitment, and business retention2. Assign metrics to certain staff3. Set a plan to influence that metric for each staff person4. Make the plan transparent to your stakeholders 5. Execute, report, and adjust
How Does Your Organization Prioritize Business Recruitment, Retention, and Marketing/Promotion?
Poll Question:
What is your primary function in your organization?
Assigning Metrics to Staff: What Metrics does Each Function Influence?
WEB VISITS
INQUIRIES /CONVERSATIONS
JOBS ANNOUNCED
CAPITAL INVESTMENT ANNOUNCED
CEO/Executive X X X X
Business Developer X X X
Marketer X X
Researcher X
Setting a Plan so That Each Staff Person Can
Drive High Performance
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Organ
izat
i
onal
Effici
ency
Economic Development CEO/ Executive
Metrics He/She Should Influence1. All
Role He/She Plays2. Setting the direction for the organization3. Allocating staff and resources4. Communicating with stakeholders to
ensure board buy in
WEB VISITS
INQUIRIES /CONVERSATIONS
JOBS ANNOUNCED
CAPITAL INVESTMENT ANNOUNCED
Business Developer
Metrics He/She Should Influence1. Inquiries/Conversations with Companies2. Jobs Announced/Conversation3. Capital Investment
Announced/Conversation
What He/She Should Focus On4. Rapid response to prospects5. Investigating prospect needs6. Providing customized responses
WEB VISITS
INQUIRIES /CONVERSATIONS
JOBS ANNOUNCED
CAPITAL INVESTMENT ANNOUNCED
Marketer
Metrics He/She Should Influence1. Website visits2. Ratio of website visits/inquiry
What He/She Should Focus On3. Driving traffic to the website via Search
Engines, social media, email4. Keeping content fresh and creating
opportunities to engage 5. Optimizing the website for conversion
WEB VISITS
INQUIRIES /CONVERSATIONS
JOBS ANNOUNCED
CAPITAL INVESTMENT ANNOUNCED
Researcher/Economist
Metrics He/She Should Influence1. Website Visits2. Jobs Announced3. Capital Investment Announced
Role He/She Plays4. Creating outstanding content for the
marketer5. Providing customized data to the
business developer 6. Managing and reporting on
benchmarked data
WEB VISITS
INQUIRIES /CONVERSATIONS
JOBS ANNOUNCED
CAPITAL INVESTMENT ANNOUNCED
How to Make the Plan Transparent to Your Stakeholders1. Write down a strategic plan for the
next year
2. Outline each staff person’s role in reaching that plan
3. Set activities and outcomes for each person, and for the organization
4. Report quarterly, using a pre-defined dashboard, to your board and stakeholders
5. Benchmark annually
How to Execute, Report, Adjust
1. Report quarterly, using a pre-defined dashboard, to your board and stakeholders
2. Review performance quarterly, including trailing metrics and forward looking metrics
3. Benchmark annually
4. Fold benchmarks back into the annual plan
How to Benchmark Your Community Using Atlas High Performance Economic Development
1. Take the survey here: 2. View your report online, starting Monday October 6, here
Questions/Discussion
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Exercise: Deciding What What Position You Will Play in High Performance
Applicat
io
n
Thank you!
Contact information:
929 BroadwayDenver, CO 80203Contact: Ben Wrightt: 303.292.3300 x [email protected] Profile | LinkedIn Group | Twitter | Blog | Slidespace
