The Race to Competitive?

What Makes a Place Competitive ?

2016 State Business Tax Climate Index – State Ranking (1 is Best, 50 is Worst) Overall Corporate Tax Individual Income Sales TaxProperty Tax Alabama 29th Arkansas 38th Florida 4th Georgia 39th Kentucky 28th Louisiana 37th Maryland 41st Mississippi 20th Missouri 17th North Carolina 15th Oklahoma 33rd South Carolina 36th Tennessee 16th Texas 10th Virginia 30th West Virginia 21st Source: 2016 State Tax Climate Index

Image-Brand-National Rankings? Alabama Overall#38 Workforce#38 Cost of Doing Business#17 Infrastructure#21 Economy#48 Quality of Life#43 Technology and Innovation#36 Education#46 Business Friendliness#30 Cost of Living# 4 Access to Capital#16 Source:CNBC 2016

Image-Brand-National Rankings? Alabama Overall#38#41 Workforce#38#16 Cost of Doing Business#17#16 Infrastructure#21#24 Economy#48#39 Quality of Life#43#49 Technology and Innovation#36#33 Education#46#34 Business Friendliness#30#29 Cost of Living# 4#11 Access to Capital#16#35 Source:CNBC

Worse Performance Than Rank Better Performance Than Rank States By Average Ranks by Forbes, CNBC, and Chief Executive (2015) Plotted Against Actual Performance for Job Growth, Wage Growth and Growth in GDP ( )

Southern States 1-Year Total Employment June 2015 to June 2016 Source: U.S. BLS, July 2016

Southern States 1-Year Manufacturing Employment June 2015 to June 2016 Source: U.S. BLS, July Measured June June 2016

Southern States 1-Year Construction Employment June 2015 to June 2016 Source: U.S. BLS, July Measured June June 2016

Southern States 1-Year Professional & Business Services Employment Changes June 2015 to June 2016 Source: U.S. BLS July 2016 Measured June June 2016

Southern States % GDP Change 2015 Source: U.S. BEA, July 2016

Change in Population (25-44 Year Old) Source: U.S. Census

So What… What is a Community to do?

Economic Leadership LLC Competitiveness Process 18 Establishing a Common Current Reality Envisioning a Common Future Desire Direction, or Compass is driven by the Vision, Mission and Core Values of the organization, place, or business Context examines relative assets and converts comparative and longitudinal information to determine realistic options Change is the group of factors, outside your control, that influences your future, global trends, demographic shifts, changing technology GoalsObjectivesActions Action Plan Matrix What actions will we undertake? Who will be responsible for those actions? What resources do we need to be successful? Where will those resources come from? When will each action start and be completed? What results do we expect? Strategic Action Agenda Reality Filters Compass Context SWOT & PEST Change Control Impact Resources Time Action Choice Filters History & Current Direction Assessment Adjustment Metrics and Measurements (Dashboards) Communications Action Choices Research Assessments Surveys External Input Leadership Assessment and Continuous Improvement Process Information Stage Choice Stage Action Stage

Top Factors for Companies Considering New Investment 1)Availability of skilled labor 2)Labor costs 3)Proximity to major markets 4)State & Local Incentives 5)Availability buildings 6)Highway accessibility 7)Available land 8)Tax exemptions 9)Expedited or “fast track” permitting 10)Shipping costs 11)Accessibility of a major airport 12)Energy availability and costs Source: Area Development 30 th Annual Survey of Corporate Executives, March 2016 Site Selection Consultants

How Some View Their World

Why Some Places Succeed They understand and embrace the journey (to stay competitive)

Why Some Places Succeed They understand and embrace the journey Strong Leadership Teams

We want someone, or some group, we trust, to make sense of all the information we are receiving. We want leaders to take actions that improves our situations or solves our problems Why Do We Want and Need Leadership?

Worst Kept (Yet Often Ignored) Secrets, To Great Leadership Continuous learning Tolerance for ambiguity, complexity, and change Communicate the narrative

Why Some Places Succeed They understand and embrace the journey Strong Leadership Teams Practice collaboration

Collaboration “The act of working with one or more people to produce or create something.” Collaboration is an unnatural act between un-consenting adults

What is a Commitment to Collaborate?

Evolution Of Groups Shared Vision & “Plan” Common Information & Language Shared Specific Tasks Familiarity Personal Connections Action & Trust

Past Behavior Capability Alignment

Collaboration Continuum Nobody Does Anything Collective Impact (Synergies) Coordinated Impacts Individual Impact Disruptive Impact Destroying Impact

Why Some Places Succeed They understand and embrace the journey Strong Leadership Teams Practice collaboration Focus on the future

Economic Trends Industry Trends Competition Political Choices

Why Some Places Succeed They understand and embrace the journey Strong Leadership Teams Practice collaboration Focus on the future They make Choices and take action

Economic Leadership LLC Competitiveness Process 37 Establishing a Common Current Reality Envisioning a Common Future Desire Direction, or Compass is driven by the Vision, Mission and Core Values of the organization, place, or business Context examines relative assets and converts comparative and longitudinal information to determine realistic options Change is the group of factors, outside your control, that influences your future, global trends, demographic shifts, changing technology GoalsObjectivesActions Action Plan Matrix What actions will we undertake? Who will be responsible for those actions? What resources do we need to be successful? Where will those resources come from? When will each action start and be completed? What results do we expect? Strategic Action Agenda Reality Filters Compass Context SWOT & PEST Change Control Impact Resources Time Action Choice Filters History & Current Direction Assessment Adjustment Metrics and Measurements (Dashboards) Communications Action Choices Research Assessments Surveys External Input Leadership Assessment and Continuous Improvement Process Information Stage Choice Stage Action Stage

“ Leadership and learning are indispensable to each other.” John F. Kennedy