The Fundamentals of Community Economic Development

SMART SOLUTIONS GROUP Economic Development consulting firm specializing in the business of economic development … primary services: ▫Strategic business planning ▫Branding, positioning and messaging development ▫Marketing planning and implementation ▫Organizational development Past eight years, worked with over 270 economic development organizations — Missouri, Iowa, Nebraska, Kansas, Oklahoma … including numerous regional economic development organizations

HOW HAS ECONOMIC DEVELOPMENT CHANGED? External Pressures ▫ Access to information ▫ Dramatic increase in competition ▫ Any single location is less critical ▫ “Show me the money!” Internal Pressures ▫Defining economic development - different stakeholders have different expectations ▫Rapid response to opportunities ▫Working collaboratively ▫Maintaining a competitive product

RESPONDING TO CHANGE  Economic development is a highly competitive business.  Successful communities approach economic development as a “business.”  Applying basic business principles to the business of economic development … ◦ M anagement ◦ M arketing ◦ M oney

MANAGEMENT/MARKETING/MONEY … THE 3Ms Businesses succeed or fail for many reasons … majority of causes one of the 3Ms …  Management  Marketing  Money Focusing on these smart business principles... smart business for economic development.

THE 3M’S PRINCIPLES FOR BUSINESS OF SUCCESS  M  Manage resources (human and financial) efficiently and effectively.  M  Market your location (“product”) to achieve sales goals … while addressing your “product” weaknesses.  M  Money (investments) to effectively implement your economic development plan of action.

ORGANIZATIONAL STRUCTURES A mix of approaches ▫Private ▫Public ▫Public/Private Successful organizations … both public and private leaders on boards.

COMMUNITY LEADER = BRAND MANAGER  Everyone should be working to selling the product or further the “brand.”  A brand is not a tagline, a symbol, a shape or the actual product or service. A brand is actually intellectual property—the totality of thoughts, feelings, word/thought associations and expectations that come to mind when the key constituents are exposed to the product, service or location/place.  Good brands are based on facts …Bad brands are based on opinions and speculation.

BRAND MANAGERS CONSIDER… Brand Stature + BrandVitality Knowledge & + Relevance & Esteem Differentiation

DEAL WITH TODAY … LOOK TO THE FUTURE Realistically assess what you have to sell … defining the product ▫Know your assets, weaknesses and opportunities and set realistic goals. Focus on managing time and resources. Continuous improvement efforts … improving the product ▫Revisit your mission and operations. Research, review, discuss trends and how these trends could impact your operations.

KEEP THINGS  Understand and embrace the value of partnering to bring new ideas to your program.  Recognize the need for broad community involvement in economic development activities and leadership.  Find ways to actively involve the business community in your efforts.  And don’t waste each others time. Encourage an “action agenda” versus an “information agenda.”

CONSIDER… Has your community identified groups or individuals who should be partners or involved in some way? ▫If we did get this involvement would our agendas generate interest? ▫How would we sustain involvement?

MISSION Business mission statements are what a business aspires to be and how they intend to realize that vision. It is your most powerful tool …only if you truly live it. Don’t obsess with the words …obsess with the meaning of those words. Use your mission as a decision-making tool.

COMMITMENT TO PLANNING Great things happen if they are planned and nurtured. Start with understand your current situation. Community leaders need to be invested, believing and working to implement your plan. Outline your process. Your fundraising should raise both money and awareness. ROI not contributions. Consider “resource maximization.”

BROADENING SUPPORT Public and private sector leaders agree on a common vision. Growth seen as a priority. Sell the vision to their respective constituencies. Guide/lead/support the community on implementation.

THE BUSINESS OF ECONOMIC DEVELOPMENT The 3M’s provide a “Roadmap” for a successful economic development business in a competitive market. Consider the following 3M’s as they relate to your community.

MANAGEMENT Our community has a comprehensive strategic plan with a mission; measurable objectives; strategies; action steps and timeline; budgets and a continuous improvement process. Our community leaders have a clear understanding of our strategic focus and direction. We keep everyone informed. Performance expectations have been set via a review/evaluation process.

MARKETING Our community has a marketing plan consistent with our strategic plan. Our community has a clear understanding of our current situation including perceptions, image, strengths and weaknesses. Our leadership is committed to supporting the implementation of the plan.

MONEY Our community has a plan to generate the needed resources. Community leaders and other “champions” have been identified to take a leadership role in fundraising. We frequently review budgets and anticipate new needs.

Think About What do external and internal changes mean to your the economic development efforts? Do you lead the growth agenda for your community…who is the champion? How well have you defined/assessed your product, and designed a plan of action for improvement? Is your community structured to reach your development goals? Do you allow time to step back and examine what needs to be done and how you’re going to do it? How well do you partner with others? Is your community mission relevant and working?

How an ED Program “GROWS” G ain the Proper Perspective ▫Renew or create the spirit of local entrepreneurship R efocus Your Efforts ▫Work from a plan…that equals success O pen Your Minds ▫Capitalize creatively on your positives W ork with Existing Business ▫Grow business at home first! S eek Collaboration Opportunities ▫Develop meaningful links with partners and each other