A Crisis is a Terrible Thing to Waste.
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- Jonas Price
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1 A Crisis is a Terrible Thing to Waste. WEDA Fall onference 2012 Tim Chase CEcD, FM Today s Session Where We Are? How Did We Get Here? Seven Ways to Add Value Immediately Why Has Economic Development Changed? Eco. Dev. Research Partnership s Metric Project Where Must We Go From Here? 1
2 Where Do You Fall? GREAT GOOD CONCERNED SCARED SPITLESS Chief Brody JAWS JOBS 2
3 Just Wait it Out Begins Length of Recession Employment Recovery Ends Length of Reces. Months UnEmp Peak Post Reces. Months Emp. Resumed to Pre Reces. Levels Months 1981 July 1982 Nov July 1991 March March 2001 Nov Dec. June ?? Sources: Recession.com, BLS, Mantras Let s all do more with less. Flat is the new up. We can only do less with less. 3
4 Shifting Value Propositions Strategic Dimensions Current Value Proposition Future Value Proposition Final Outcomes Competing for jobs, investment, taxes Helping businesses, communities & institutions add value Organizational Model/Approach Silos of power, wealth and influence Inter-organizational networks alliances, teams EDO s Key Roles Catalyst, deal-maker, climate-shaper, single organization strategist Building system solutions, change leader, managing networks, collaborative strategist Products and Tools Geographic Focus Tangibles including facilities, workforce, financing, physical infrastructure Within communities, regions, states Intangibles human capital, technology & knowledge networks, investment capital Between communities, regions, states, nations Seven Ways To Add Value 1. Stimulate Entrepreneurship 2. Re-think Visioning and Planning 3. Get Serious About Workforce 4. Add Alignment to Your Partnership 5. Speak Truth to Powers 6. Identify SME on Pending Legislation Issues 7. Ask What You Sell and Who Cares Enough to Buy It? 4
5 Stimulate Entrepreneurship Openly Address Resource-Results Ratio Economic Gardening (matchmaker) Broker Stranded Technologies Succession Facilitation Re-think Visioning and Planning Command & Control Moves Too Slowly Vision Analysis vs. Situational Analysis Zero Sum Planning and Strategic Doing Open Networks Learn Faster Create New Measurements of Success 5
6 Workforce Development Get Smarter on Supply/Demand Shift from Occupations to Skills WIBs are from Mars EDOs are from Venus Who s Responsible? Partnerships to True Alignments Interested Parties Partnerships Alignments Members share interests but do not work together on projects and rarely share information. Members routinely cooperate and occasionally share responsibility for the achievement of specific goals. Members mutually allocate resources to dramatically improve results faster using shared set of Values, Practices, and Behaviors. 6
7 Speak Truth to the Powers Leadership is in High Demand and Low Supply Chronic Unemployment Retention Truly is King All Taxes Will Go Up Municipal Revenues Will Suffer the Most Technology s Double Edge Identify SME for Legislation What are the New Questions to Ask You Don t Have to be the SME Create a Forum for Businesses and Politicians to Debate Eligible Projects 7
8 Who Cares Enough to Buy? Treat Your Organization Like a Retail Business Who s Your Competition What s Your Pricing Strategy Donation vs. a Sale A Crisis is a Terrible Thing to Waste. What Has Changed and What we Must Do. 8
9 Why Has Economic Development Changed? Wayne Brenda Kristen You Spencer Johnson MD Why Is This So Difficult? There Are Now Three Economies 1. End of Industrial Economy 2. Knowledge Economy (transitional) 3.The Next Economy Creative Molecular Sharing Flux Me Biotechonomy We Must Have A Foot In All Three Economies 9
10 Open-Source Economic Development Changes Everything Economic Developers made a good living selling themselves and their?_. Open Source is how the Internet was born EDRP Measuring Success Project Part One Literature Review Survey Membership Interviews Members Part Two Missing Metrics? Part Three Best Practices Part Four Additional Metrics Beta Test Menu of Measures Part Five Create a Standardized National Metric Tool 10
11 We Are Not Alone in This Effort The British Chief Economic Development Officers Society (CEDOS) Economic Developers Association of Canada (EDAC). Regional Innovation Acceleration Network (RIAN) Washington, D.C.: Urban Institute Harvard Business Review National Institute of Standards and Technology, Baldrige National Quality Program. Advanced Performance Institute Chief Economic Developers Society of England (CEDOS) Using Benchmarks to Measure Longitudinal Over Time Cross-Sectional Against Others 11
12 3 Quantitative Vs. 100s Qualitative Quantitative Vs. Qualitative Factual Data From Credible Sources Perception Sourced Data 12
13 The Logic Model (Hatry) Inputs Activities Outputs Outcomes Money Staff Volunteers Facilities Equipment Supplies Tourism Business Recruitment International Trade Number of Inquiries Number of Companies Assisted Number of Projects Completed Job Growth Capital Investment Sales Figures of Client Income Growth An International Look Business Support Businesses assisted Business start-ups supported Jobs created/ safeguarded Customer satisfaction Inward Investment Investments Companies assisted Jobs created/ safeguarded Cost per job Customer satisfaction Land & Premises Brownfield land reclaimed Workspace occupancy rate Leverage of external funding Jobs supported Cost per job/ per sq. meter of floor space Business survival Business growth Customer satisfaction Training & Employment Unemployed people going into employment/ full time education Customer Satisfaction 13
14 Shift From Results to Organization Qualitative Results and Actions Organizational Efforts and Patterns Baldrige National Quality Program 14
15 Balanced Score Card Customer Perspective - How do customers see us? Internal Process - What must we excel at? Learning & Development - Can we continue to improve and create value? Financial Perspective - How do we look to shareholders? Top 10 Metrics for Public Sector New Businesses opened Population Jobs created full-time Workforce Inquiries received New Business investment attracted Building permits Commercial Building permits Institutional Business closures Unemployment rates 15
16 Seven Recommendations Select a handful of metrics rather than measuring everything. The metrics selected should reflect the goal of the organization Include a few metrics to show activity and outputs All metrics must have an identified data source Survey your clients Claim only what your organization played a role in Report outcomes over time Summary of State & National Guidelines for PMs EDAC State EDOs CEDOS Few in Number x X Reflect Mission x Reflect Output, Not just Activity x x x Data Collection QC x x x Survey clients x x x Attention to Individual Claim/Partnership x x Report over Time Longitudinal x Report comparisons B/T areas - Cross-Sectional x Rank Activities X Carefully Design Tracking System x Revisit PMs x Define/clarify measures x x x Measure customer satisfaction 16
17 Conclusions Some of These Ideas Can Help Doing Things Right Bias Toward Action Communities Of The Future Need to hear from you to build this program! Tim Chase, CEcD, FM The Real Reason Dinosaurs Are Extinct! 17
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