REGIONAL INDICATORS: Examples for small group discussion Partnership for Regional Opportunity April 30, 2014 CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission of McKinsey & Company is strictly prohibited

Like most best practice regional indicators San Diego’s are organized into categories 4 overall categories, 20 metrics to describe & measure those categories San Diego’s indicators are prominently displayed on the homepage of the regional economic development organization Oriented to tell story of region’s talent (talent has its own category, above economy) We talked to six best practice regions (Austin, Pittsburgh, Kansas City, Nashville, Research Triangle and Charlotte) The result – 9 common themes (5 environmental levers, 4 process levers) Environment levers – key elements of your region’s economic infrastructure Process levers – how you leverage your region’s assets to drive economic growth We then assessed the Twin Cities’ against these 9 levers – the results indicated in the scorecard shown Key ratings: Above average in terms of human capital and quality of life On par with peer regions in terms of infrastructure and culture of innovation Below average in cost of doing business – mainly driven by our tax climate, cumbersome regulatory and permitting process and high wage rates. We also identified a clear gap: lack of a regional vision and economic development capabilities, including externally marketing our region. SOURCE: SanDiegoBusiness.org/Research; Io.inc, McKinsey Cities Initiative 1 1

Atlanta chose its metrics in each area to gauge its progress to specific goals Atlanta’s Plan 2040 identified these five key goals against which to measure progress (see details on next slide): Promote places to live with easy access to jobs and services Identify innovative approached to economic recovery and long-term prosperity Improve energy efficiency while improving the region’s environment Increase mobility options for people and goods Foster healthy, educated, well-trained, safe and secure population In addition, Atlanta has created an interactive map that compares the region to 100 other top regions in the U.S. SOURCE: Atlanta Regional Commission

Atlanta has metrics behind each goal Proximity to jobs Average commute % HH income spent on housing and transportation Access to Arts (number of “creative establishments per capita) Exports Patents Percentage of “knowledge jobs” (knowledge, logistics, production, and entertainment1 Unemployment GMP Home price index Percentage of commuters with “green commutes”2 Air quality Cost of congestion Congestion index Average annual hours delay per commuter Higher education Mismatch between education jobs require (based on Brookings Institute data) High school graduation rates Obesity 1 Identified by partners within Atlanta as being clusters targeted by state and local economic development agencies 2 Defined as commutes by transit, walking, biking, or teleworking SOURCE: Atlanta Regional Commission

London’s set of indicators is focused on sustainable development, which it defines broadly SOURCE: London Sustainable Development Commission

San Antonio San Antonio’s dashboard provides the user with current status towards 2020 goals in 11 categories. SOURCE: www.sa2020.org

Northeast Indiana NE Indiana offers one of the most compact models we’ve seen. SOURCE: http://www.neindiana.com/vision/resources/regional-dashboard

MN Compass draws on several sources for a comprehensive view of the state and its regions This is the view for the state. The same data is available by region, but not in this format (with trend indication and national rank) Main data sources: Census Bureau Deccenial census IPUMS American Community Survey State of MN Health Education DEED In addition, Compass relies on several surveys for its data: Current population survey, BLS Minnesota student survey, MN Dept of Health Bush Foundation State Survey SOURCE: Source