Leadership for Economic Development A Primer for Policy Makers and Community Leaders

Economic Development Strategies (a partial list!)  Recruit New Business  Help Local Companies Expand  Help Companies Facing Challenges  Help Support New Business Creation  International Trade Development  Promote Tourism and Conventions  Develop Property and Infrastructure  Downtown Revitalization  Workforce training/development  Work to resolve business climate issues (advocacy): taxation, regulation, etc.  Research/Information Clearinghouse As the need or popularity for economic development grows… this list of activities grows as well. Don’t be surprised to see issues like housing & social services get on this list

Economic Development: Why All the Hoopla!? Create Jobs Raise Incomes Raise Tax Base Help Local Industries Stabilize the Economy Avoid Obsolescence Develop Resources Revitalize Community Lots of nonprofits and other organizations are using “return on investment” metrics. As a result we are no longer unique and the competition for funds is stiff.

New Priorities  Ensure strong transportation and utility infrastructure  Offer low cost labor  Assemble constituent groups to finance industrial parks  Attract large businesses with large manufacturing facilities Now:  Ensure strong technology infrastructure: telecomm, incubators, networks, etc…  Offer highly skilled workforce  Build collaborations to leverage human capital and innovation centers  Encourage entrepreneurship and small start-ups Always Be Learning…Bank on Change The industrial recruitment paradigm is dead!

Sitting On Governing Boards & Committees Board Responsibilities: Financial Oversight Strategic Planning Raising Funds Developing Policy Community Relations Monitoring and Evaluation Hiring/firing Executive Director Board Development Providing Counsel/Assistance  Remember Boards Sustain An Organization – Staff Comes and Goes Are you helping sustain the Board and the organization?

Tools for Effective Organizations (codewords for Leadership!)  Time Management: –Clearly understand what is time sensitive, what are the top priorities, and stay focused  Master the ability to work with groups and committees: –Be great facilitators –Empower your peers and participants –Make it worthwhile… be objective oriented and do not meet for the sake of meeting  Run effective meetings: –Did I tell you to be prepared?!?! –Have an agenda –Send important materials out in advance! –Get input from everyone  Manage Change – don’t become a roadblock! You would be surprised how many organizations don’t do this… and the amount of trouble it can cause

Enron & the New World of Accountability Congress passed the Sarbanes-Oxley Act to make Corporations more transparent and accountable. –This act applies to nonprofits All nonprofits should now have: –Document retention policies –Whistleblower protection policies –Conflict of interest policies (signed annually!) For economic development boards you should also have a “confidentiality” policy A confidentiality policy can work side by side with public disclosure requirements… if you are careful!

Accounting and Finance Choose a financial report that is easy to develop and convey: –Suggestion: Use a “Cashflow Statement” Establish internal controls to prevent fraud! –Review bank statements –Have the Board approve financial statements for every month –Two signatures on checks –Establish fiscal policies –Review and approve audits or financial reviews –Review Executive Compensation (the law) –Review and approve IRS form 990 (the law) Does your organization take these (or other ) steps to prevent fraud?

Staffing and Personnel Often the most important component affecting success of the organization Create a fair and formal employment “system” –Job Descriptions –Organizational Chart –Personnel Policies –Evaluations Hiring the right director – what to look for… Getting new staffers off to a good start –Developing goals and sharing expectations Defining expectations for new hires (including management) is as important as finding the right person!

Working in 2012 Recognize that there are several generations in the workforce right now: –Traditional, Baby boomers, Generation Xers, Millenials –Each of these generations have a different attitude towards work Develop generational awareness –How to recruit, motivate, train, retain and supervise changes from generation to generation Anyone who employs a multigenerational workforce understands the challenges first hand

When Generations Collide TraditionalBoomersXersMillenials GoalsBuild LegacyBuild Stellar Career Build Portable Career Build Parallel Career RewardsJob Well DoneMoney, Title, Office Freedom to DoWork with Meaning TrainingLearn Hard Way Train ‘em & they leave Training an incentive to stay Continuous Learning FeedbackNo News Good News Annual Review and data Will ask when wanted Instant Feedback Changing JobsChange a stigma Change puts you behind Change necessary Change a daily routine Life BalanceSupport in shifting and balancing Help me find meaning Give me balance now Not at 65 Flexibility to balance all activities RetirementRewardRetoolRenewRecycle

Principles for Successful ED Organizations Sharkproof Principles For Success (or Survival) Based on over 100+ years of combined practitioner experience Focused on: Partnerships Communication/Public Relations Board Management Organization Program/Personnel

Working with Partners CountyChambers Economic Dev. Councils Business Community SBDC Utilities Port Districts Revolving and Micro-Loan Funds Government (Federal, State, Cities and Tribal) Economic Development Districts Community Action Programs Visitors & Convention Bureau High Schools Community Colleges Vocational Schools Property Development Recruiting Access to Capital Technical Assistance Business Development Coalition Building Funding Business Climate Community Development Tourism Workforce Development Business Climate Quality of Life Business Development Coalition Building Infrastructure Support Development No one has a franchise on economic development!!

Partnership  Get Your Partners Involved!!  Resolve or Avoid “Turf” Issues with Partners!! Spread the Credit around!  ED is a Team Sport -- Spread the Credit around! The more you give the credit away… the more it will come full circle back to you!

 Keep Your Stakeholders Informed!!  Your ED program should tangibly address community issues MUST  Economic development organizations MUST engage in public relations and community education Communications/Public Relations Ask Yourself  What does your organization do to stay in touch with your key stakeholders, members & investors?  Can you and your fellow board members cite your local EDC’s top priorities and recent accomplishments?  What “tools” are available to support public and investor relations?

 Nurture and Grow a Strong Board of Directors  Clearly Define the Board’s Responsibilities  Keep Board members Informed and Educated  Keep Your Board Focused and Involved Board Management Ask Yourself How do you get new Board members plugged in and up to speed?

 Strong Organizations are the Function of Boards, Stakeholders & Staff  Organizations Depend on Quality Leadership  Organizations Are Dynamic so Stay Ahead of the Curve  Healthy Organizations Depend on a Solid Administrative Foundation Organization

 Once the Board Adopts a Program & Budget - Focus on Execution  Build Evaluation Activities Into Your Program  Provide Clear Direction For Management  Invest in Training for Staff  Invest in Technology for Staff  Effective Communication is Key to Staff and the Organization Program/Personnel

One Last Thing One Last Thing! Economic development strategies should ideally be tailored to your region and based on the unique assets you have that can support business growth and wealth creation –Be careful about “cookie cutter” approaches; –Be careful about comparing your community to others; Be patient! Remember the best home run hitters will tell you they don’t focus on hitting it out of the park. If you look to “connect” instead… good things usually happen. You can score a lot of runs with singles!