A Journey for Economic Developers through Strategic Planning Indiana Economic Development Course Ball State University January 14, 2014 Thayr Richey, Ph.D. President Strategic Development Group, Inc.

Two Goals 1.Look at one effective way to plan for economic development, and 2.As we do that, briefly discuss economic development theory Thayr Richey 2

Why Plan? 1.Understand your local economy 2.Evaluate possible approaches 3.Target your limited resources 4.Set performance objectives 5.Tell your board, staff and the public what you are going to do 6.Manage your career Thayr Richey 3

Many Definitions of Economic Development 4 Thayr Richey

Most of Those Definitions Are at Best Incomplete Thayr Richey 5

Why Pursue Economic Development? 1.To give residents an opportunity to have more money 2.To ensure that our community has an economic reason for existence Thayr Richey 6

There Are No Simple Solutions  New Basic Employer Recruitment  The Creative Class  Focusing on workforce development  Entrepreneurship Thayr Richey 7

Societies and Economies Change Throughout any Midwest state you can find dead and dying communities whose economic reason for existence has failed. Thayr Richey 8

A Brief but Important Tangent There are lies, damned lies, and statistics. Thayr Richey 9

Local Economies Are Volatile Strategic planning deals with change Thayr Richey 10

What a Plan Does (1 of 2) 1.Gives a clear map that can be changed 2.Focuses on what can be controlled 3.Provides a clear and stable picture to volunteers and public Thayr Richey 11

What a Plan Does (2 of 2) 4.Tells staff what to do 5.Defines expectations for the board of directors 6.Creates a comprehensive view Thayr Richey

Economic Development is Not an End in Itself Thayr Richey 13

A Community’s Economic Development Strategy Must support the community’s vision Thayr Richey 14

Planning Is a Pejorative Thayr Richey 15

Planning Obstacles in Economic Development (1 of 3) 1.Previous bad experiences 2.Action-oriented small business approach Thayr Richey 16

Planning Obstacles in Economic Development (2 of 3) 3.Need for “consensus” 4.Lack of a vision 5.Confusing “vision” with “strategy” Thayr Richey

Planning Obstacles in Economic Development (3 of 3) 6.Misunderstanding of economic development 7.Confusing a “study” and a “strategy” Thayr Richey

Economic Development Requires the Actions of Partners  Local elected officials  Utility-based operations  Local/regional businesses  Developers Thayr Richey 19

Time Frame for Plan?  One year  Three years  Five years Thayr Richey 20

Beginning the planning process Thayr Richey 21

Basic Elements 1.Mission 2.Vision 3.Goals & Objectives 4.Approaches 5.Actions 6.Organizations & Responsibilities 7.Budget 8.Implementation schedule Thayr Richey 22

From Goals to Action 1.Goals are large, non-measurable concepts 2.Each goal should have measurable objectives 3.Goals should lead to specific programs and E.D. approaches 4.Each approach should have a detailed action plan Thayr Richey 23

A Few Economic Development Approaches 1.Retaining revenue within the community 2.Infrastructure development 3.Improving the workforce 4.New basic employer recruitment 5.Retention & expansion 6.Small business development 7.Tourism Thayr Richey 24

Planning Principles The process should be: A.Transparent B.Inclusive Thayr Richey

Step One: Know Where You Are 1.Describe the local and regional economy 2.Analyze its major elements 3.Evaluate the current economic strengths and weaknesses Include demographic trends, business clusters, workforce, transportation, etc. 4.Regard macro-economic forces Thayr Richey 26

Use Primary & Secondary Research 1.Local input (primary research) a.Focus groups b.Interviews c.Surveys d.Public meetings 2.Secondary research – explore existing data and statistics Thayr Richey

Sample Data for Step One Your Region: Manufacturing Earnings and Employees by County CountyManufacturing Earnings Number of Manufacturing Employees County 1 $778,465,0005,357 County 2 $361,754,0007,000 County 3 $61,898,0001,459 County 4 $90,366,0001,561 County 5 $84,744,0001,194 County 6 $126,316,0001,745 Thayr Richey

Good Secondary Research Sources  BSU Center for Business & Economic Research stitutes/bbrr stitutes/bbr  Indiana Business Research Center Thayr Richey

Step Two: Determine Where You Want to Go 1.List problems and opportunities 2.Consider which are most important 3.Do you have the ability & resources to solve problems & to build on opportunities? Thayr Richey 30

Identify Existing Relevant Models  Examine analogous communities and regions  Talk with your counterparts in those communities about lessons learned  Create hypothetical outcomes from the new plan Thayr Richey

Sample Data for Step Two Case Studies for Mfg. Innovation Solar Valley Mitteldeutschland Tech. Innv. Cntr. U.S. “Mfg. Communities” Frauenhofer Insts. Thayr Richey

Step Three: Determine How to Get There 1.Review the proposed outcomes from Step Two 2.Break each outcome into a set of general goals 3.Keep it simple: try to have no more than five goals 4.Subcommittees research best practice models for each goal 5.Don’t reinvent the wheel, if possible 6.Create the written strategy 7.Implement & review frequently Thayr Richey

Sample Data for Step Three Key Programs for R&E: Additive Manufacturing Training Battery Research Key Program for NBR: Solar Component Mfg. Thayr Richey

Step Four: Implement the Plan  Staff and board should focus on both goals and measurable objectives  Board uses the plan as a governance tool Thayr Richey

Sample Data for Step Four Implementation Plan Excerpt Thayr Richey ActionMonth 1 Month 2 Month 3 Month 4 Hire Project Manager Review Targeted Mkt. Plan Implement Mkt. Plan Attend Site Sel. Conf. Review & Report Progress

A Summary of a Typical EDO Planning Process: 1.Initial research Steering Committee Meetings 3.Create & Implement Public Communications Plan 4.Develop initial outcomes 5.Research models Thayr Richey Rethink the outcomes 7.Create a realistic implementation plan with measurable objectives 8.Implement the plan 9.Review the plan periodically 10.Revise the plan as needed

Three Questions You Should Ask 1.Can the organization(s) meet the community’s primary economic needs and opportunities? 2.Do we have board commitment to carry out this mission? 3.Do we have the resources to carry out a meaningful plan? Thayr Richey 38

Common ED Planning Issues 1.Funding new employer site capacity 2.Determining services to established business 3.Improving outreach to prospective employers 4.Working with multi-county, regional partners Thayr Richey

Planning as a Tool for Professional Survival 1.Establishing realistic objectives 2.Setting and controlling expectations 3.Clarifying the metrics by which you are evaluated Thayr Richey

Career Planning 1.Where do you want to be in 5 years? 2.What will you need to do to get there? 3.Is your current job an asset or liability? Thayr Richey

Your Choice 1.Depend upon luck 2.Manage your organization and career with a plan Thayr Richey

Conclusion Thayr Richey, Ph.D. President Strategic Development Group, Inc