Working through Consulting firms: the implications of direct facilitation GIPB Event Istanbul, Turkey May 2013

Contents 2  Introduction to OCO Global  What are the key activities in investment promotion?  What roles do consultants play?  Working WITH IPIs  Working FOR IPIs  Q&A

3 OCO Services Cube  Established 2001  50 Staff  Offices in Belfast, London, Paris, New York and Sao Paolo  Services  Site Selection/CLS, Grants/Incentives  Trade and Investment strategy  Business Intelligence  Lead Generation/representation  Clients  IPIs, EDOs, IPAS,  OCO Corporate  International Orgs, NFPs About OCO

4 1.Policy & Strategy 3.Investment Facilitation & Landing 4.Aftercare & Reinvestment 2.Investment promotion Research Networking Lead generation Events & outreach PR/Media Marketing & promotion Site visits Incentives Skills & Capabilities Property search Connectivity to suppliers/clients Monitoring & Intelligence Supply chain support Account management After sales/aftercare Establishment Funding & organisation Training Product development Market & sector prioritisation Investment policy Key Activities in Investment Promotion

5 Role of Consultants in Investment Promotion Site selection/ Corporate location PR & Advertising Trade & Investment Strategy Lead Generation/ Representation Business Intelligence WORKING WITH IPIs WORKING FOR IPIs Many consultants do both!

6 Site selection/ Corporate location PR & Advertising Trade & Investment Strategy Lead Generation/ Representation Business Intelligence Deloitte Marsh & Mc Clelland OCO GlobalFrenger Oxford Intelligence KPMGHill & KnowltonPAOCO Global Oxford Economics PwCOSAGOPAIBDGBVD Ernst & YoungDCIErnst & YoungDCIOCO Global Conway DataKPMGROIErnst & Young DTZFT BusinessMc KinseyPAExperian CBREAtlasRegional partnerFT BuckGIS Planning PLI – IBM Tractus Examples of Consulting Firms

7 WORKING WITH IPIs

8 Customer and supplier activity Due diligence: ‘show stoppers’ ‘forward planning’ Government incentives and support Site and property availability Speed of implementation Synergy with existing operations Track record in the sector Labor and skills availability Where to invest? Financial analysis: impact on the bottom line First-mover advantages Alignment with corporate strategy Competence (R&D) availability The Investor’s Point of View

9 Project Design Agreement on key drivers, project objectives Identify candidate locations Long List of Locations Analyse threshold criteria at macro-level Geographic units, scale Interim reporting Short List of Locations Validate desk sources with primary research Analysis at local levels: connectivity, state aid etc Report on recommended cities for visits Validation Visits Validate research through “on the ground” presentations Final Reporting ACTIONS TOOLS STAGE 1 STAGE 2 STAGE 3 STAGE 4 Desk research on location benchmarks Various data sources Location expertise Network of contacts with recruiters, IPIs, current companies, real estate advisors Primary research from recruitment consultants, investment promotion intermediaries Apply weightings, cost / quality score where necessary An IPI Role at Every Stage Site Selection Methodology Discussion on strategic context and business drivers

10 Corporate Decision Process 1. Project Design 2. Long List of Locations -Understand the types of projects you’re competing for -Identify key location factors: quality and cost - Identify, and collect data on benchmark locations - Proposition & website marketing - Get on the short list! 3. Short List of Locations - Investor facilitation – support, research, information provision 4. Validation Visits Proactive Investment Promotion:  Align message and information to corporate location process  Go from reactive approach to proactive approach  Ensure that information given to investor is aligned to actual requirements  Listen to the investor -Site visits, more information provision -Then implementation and aftercare! The IPI Role Aligning to the Corporate Process

11 LABOR Salaries, On-costs, Attrition, Severage Costs, Benefits, Recruitment PROPERTY Rents, Acquisition, Fit-Out, Taxes UTILITIES Electricity, Gas, Water, Telephony, Broadband STATE AID / GRANTSCORPORATE TAX LABOR SKILLS Qualifications, Availability, Universities, Experience, Languages CONNECTIVITY Road and Rail Networks, No. of Flights, Proximity to Airports INFRASTRUCTURE Regulation, Patents, Government Support LABOR FLEXIBILITY Max Hours, Leave, Overtime, Unions ATTRACTIVENESS Visitor Profile, Amenities, Quality of Life RISK Security, Political, Economic COST QUALITY LOCATION FACTORS A Company’s Key Location Drivers

12 Medium cost, medium quality location options Ideal location Low cost, low quality location option High cost, high quality location option Uncompetitive location options Making the Decision

13  Remember, your role is not complete by providing information – that is where it starts and its then time to pursue that lead  Do more research before you get inquiries – know everything there is to know about your location, particularly in your target sectors  Differentiate your presentation – make it slick but don’t overcomplicate – credibility is key  Differentiate the content – benchmarking your location in a good light against competitors is a powerful message GIPB: Optimizing Your Facilitation How Can You Improve? Above all, LISTEN to the investor, UNDERSTAND their needs, and TAILOR your facilitation services specifically for that inquiry

14 Conclusions Working WITH IPIs  Have dedicated research specialists within your organization, so detailed, up-to-date information is continuously available  Put yourself in the guise of the private sector and think like investor – your services should be giving the solutions not tying them down in bureaucracy  Be flexible, learn from your mistakes. Ask companies and consultants about your facilitation  Talk to your existing business base – learn from them and get them involved  Don’t be afraid do ask other organizations for input – but maintain ownership as the key client contact

15 WORKING FOR IPIs

16 What consultants can bring to IPIs  Efficiency & Process improvements  Independence (Assessment impacts)  Best practice insights  Networks & credibility  Sector industry expertise What consultants can’t / shouldn’t bring to IPIs  Unfettered access to their clients  Delegated authority to operate in Government organisations  Control over the client relationship  Performance management/MIS  Capacity solutions (in longer term) Good Practice / Weak Practice

17 High involvement Low involvement Low intensity/Short term High intensity/Long term Lead Generation Policy & Strategy Outsourced investment promotion Business Intelligence TrainingMarketing & PR Incentives & Property Different Levels of Focus & Engagement

18  Business intelligence and use of data mining tools, CRM & technology platforms to target clients  Partnerships with private sector to fund or second staff where there are mutual gains  Payment by results  Outsourcing of oversees networks/offices and lead generation, events and investor outreach to improve agility/flexibility  Investment in client segmentation and differentiated service levels to improve client reach, conversion and retention  Marketing and propositions – a shift from place marketing to business solutions marketing to a narrower audience Trends in Consultants Working for IPIs

19 Activities Effectiveness of consultants Advantages/Disadvantages Policy & strategy ** External perspectives and best practice Access to specialists *** Rarely an ongoing need/framework very effective Training & development *** For larger IPI’s, ongoing so framework contracts effective Research & business intelligence **** Not a constant, can be dialled up or down PR & marketing ** Important to control content but good PR can multiply effectiveness Lead generation *** Client must control, manage and follow up etc.but offers agility/flexibility and reach Site visits * Relies on connectivity to local supply base and government department Incentives/negotiations * Only from a compliance or impact evaluation aspect Supply chain ** Can b e effective with right industry expertise Establishment * Minor role for local chambers, trade outsourced etc. Aftercare * Client relationships must be owned by IPI Plan Pursue Win Retain Phases Scope for Outsourcing Investment Promotion

20 Agility and operational flexibility are features of the most effective trade and investment agencies today. This means fewer international offices and fixed geographical footprints and more partnership with external specialists. OCO offers a 3-tier service that reflects the different needs, budgets and expectations of our client base. Full client representative office (Front Office)  Dedicated office and address  Card carrying staff  Trade, Investment and marketing services  Missions and client hosting Fast track services (Back Office)  Unqualified leads/market watch  Trade and investment missions  Direct marketing/cold calling  Appointment setting Sales and marketing support (Middle Office)  Investment lead generation  Trade leads and pipeline development  Market and company profiling and analysis  PR and marketing Sales support & lead generation FDI and trade fast track services In-market representation $$$ $$$$ $$ Lead Generation & Representation

21 Budget $13 m£75 m£4 m Consultancy expenditure $1.5 m£15 m£1 m Scope Representation services oversees Investment facilitation & landing services in UK Oversees missions & lead generation Providers Varies by territoryPA/OCO Global/BCCVaries by territory Results Top 4 state for investment ROI $17 for $1 Leading EU FDI destination project success Leading Asian city for FDI, volume Case Studies

22 Scope of Work  Since 2005 OCO have been representing the State of Florida in the France, Italy, Benelux and more recently in UK and Ireland.  We operate fully serviced offices and staff working full time on behalf of the state in Paris and London supported by back office services from Belfast.  Role is to provide investment leads from these markets and to connect Florida companies with trade opportunities/buyers from Europe. Outputs  OCO has investment targets to meet each year in respect of projects, jobs and capex in Florida’s key sectors and a $ value of trade deals which must be introduced.  We also have planned and delivered a number of high level Governor missions to UK, France and Germany. Photos: TOP Governor Rick Scott with Ian King, CEO of BAE System (meeting scheduled by EFI UK); BOTTOM Governor Rick Scott, Gavin Cleary (EFI UK) and Manny Mencia (EFI) with Nigel Stein (CEO of GKN Group), Mike McCann (SVP Business Development of GKN) and Marcus Bryson (President/CEO GKN Aerospace) Representation: State of Florida, USA

23 Scope of Work  Since 2011 OCO are part of the consortia led by PA Consulting responsible for delivery of services to investors in the UK.  Our role is to develop the investment propositions for some 50 sectors that UKTI is promoting for investment and trade, and to develop customised responses to the investment enquiries received by UKTI. Outputs  In our first year of operations to end of March 2012 the UK secured more than 1400 investments from overseas companies and created 100,000 jobs.  OCO have responded to more than 400 enquiries and developed more than 50 investment propositions on the UK that are being used to target investment.  We are heavily involved in training and capacity building for the wider network. Managed Services: UKTI

24 Conclusions Working FOR IPIs  Use of consultants and managed service providers can significantly amplify budget, reach and performance among IPIs  Consultants bring agility, connectivity to the industry and operational freedom that cannot easily exist in government  The most effective consulting engagements have built in success fees or incentive award performance  Clients (IPIs) need to adopt professional standards of project management, control and reporting to get the most from their consulting partners  Independence and strategy for managing conflicts are important to discuss and agree at the outset  Clients & consultants need to distinguish between design or development work versus delivery/implementation. The time frames, control and cost profiles are very different.

25 OCO Global (Belfast) 6 Citylink Business Park, Belfast BT12 4HB, Northern Ireland Tel: +44 (0) Fax: +44 (0) Key contacts: Judith Walker, Dawn McCoy and Therese McCrory OCO Global (London) 146 Fleet Street, London EC4A 2BU, UK T: +44 (0) F: +44 (0) Key contact: Gavin Cleary OCO Global (Paris) 65, Rue d'Anjou, Paris, France T: +33 (0) Key contact : Laurent Sansoucy OCO Global (New York) 45 Broadway, 21 st Floor, New York, NY10006, USA T: Key contact: Joe Phillips 65, Rue d’Anjou / angle Boulevard Haussmann, OCO Paris Contact Us