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For the Development Organization

Aligning Strategic | Plans

Eric RinehartEconomic Development Solutions, inc.E-D-Solutions.com

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Success Planning Model The Overarching Structure of the Plan Documents

Organizational Strategies Critical Success FactorsSuccess Metrics

Business Unit Strategic PlanExplicit StrategiesImplementation Plans

Program Operational PlansTime and EnergyKey Results

Institutional StrategyStrategic VisionStrategic Goals

adapted from Richard Sessions Integrating External Benchmarking Into Your Strategic Planning Process.

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Blue Print

An Organizational Planning Document

Vision and MissionVision and Mission Major ForcesMajor Forces: Growth Assumptions;

Environment Institutional Goals:Institutional Goals: Goals; Objectives;

Priorities PhilosophyPhilosophy: World Class Core Competencies:Core Competencies: Supporting

Elements Assessments: Measures of Success

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… Compared with Typical Outline

Reference Overall Singular "Mission" or Desired Result

Take Stock Outside and Inside the System (PEST) Analyze the Situation (SWOT) Establish Goals that build on strengths and wards off

threats. Establish Strategies to Reach Goals Establish Objectives Along the Way to Achieving Goals Associate Responsibilities and Time Lines With

Objectives Write and Communicate a Plan Document

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Customers, Products, Benefits, etc.

The organization needs to determine its mission. Why does it exist? What is it trying - in general terms - to accomplish? The mission statement provides the overall direction for the agency in developing its goals and objectives.

organization’s mission

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Identify Stakeholders and Values

StakeholdersStakeholders

Public at LargePublic at Large Families

Targeted Areas/GroupsTargeted Areas/Groups Welfare of Community

Business SectorBusiness Sector Commerce/Industry

Market InstitutionsMarket Institutions Market Place

Core ValuesCore Values

Economic IndifferenceEconomic Indifference - Laissez Faire

Distribution FailuresDistribution Failures - Inequities in Distribution

Econ. PerformanceEcon. Performance - Level of Production

Structural LimitsStructural Limits - Improved Organizations

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Identify and Segment …

CUSTOMERCUSTOMERSS

PRODUCTSPRODUCTS LOCATIONSLOCATIONS RESULTSRESULTS

External Customers Segments[1st Focus]

Current Mandates, Programs, Allocations

Local and Regional

Availability

Intermediate

Outcomes: Jobs and

Investment

Internal Customers[2nd Focus]

Requested Programs

and Services

Self-Service,

Case Work, Group Service

Final Outcomes:Growth/

Advantage

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.. then Combine into a Mission

CUSTOMERSCUSTOMERS PRODUCTSPRODUCTS LOCATIONSLOCATIONS RESULTSRESULTS

Public at Public at LargeLarge

Public Public GoodsGoods City/CountyCity/County Quality of Quality of

LifeLife

Area/GroupArea/Group C’mnty C’mnty SrvcSrvc

NeighborhoNeighborhoodod

Equity/Equity/StabilityStability

Bus. SectorBus. Sector Business Business SrvcSrvc

Market Market AreasAreas GrowthGrowth

InstitutionsInstitutionsCapacity

Bldg RegionRegion Area Area AdvantageAdvantage

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Influences, Foundations, Theories

The economy is a complex, inter-dependent and adaptive system which we can look describe at various levels of analysis detail

major influencescomponent foundationsregional growth

theories

assumptions about growth

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Influences on a Regions’ Economy

Profit-Making Interest

Business Sector

Social Rooted Interest

Area/Group Condition

Public InterestsGovernment

Plural InterestsMarket Institutions

Behaviors-Based Framework

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Public GoodsPublic Goods[Gov’ment = Public Interest]

Governance/TaxesGovernance/Taxes administration/budgeting administration/budgeting

RegulationsRegulations protection/ordinances protection/ordinances

InfrastructureInfrastructure roads/utilities, etc roads/utilities, etc

Public ServicesPublic Services education; amenities education; amenities

Foundations of Economies

Factors of Factors of ProductionProduction[Markets = Plural Interests]

Material ResourcesMaterial Resourcesnatural, technologynatural, technology

CapitalCapitalcapital equip; financingcapital equip; financing

Human ResourcesHuman Resourceslabor, technicians, adminlabor, technicians, admin

OrganizationOrganizationbusiness climate business climate

This Endowment is Finite but not Fixed

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Community BettermentCommunity Betterment[Groups = Social Interests]

Fiscal StabilityFiscal Stability positioningpositioning

Area RedevelopmentArea Redevelopment growth management growth management

Civic CapacityCivic Capacity organizations; volunteerism organizations; volunteerism

Economic OpportunityEconomic Opportunity self sufficiency, housingself sufficiency, housing

Functions of Development

Enterprise GrowthEnterprise Growth[Business = Profit Interests]

Capital InvestmentCapital Investment private owners of private owners of productionproduction

Trade/Export Trade/Export PromotionPromotionmarket based market based purchasingpurchasing

Production Production OperationsOperationsprice based resource price based resource systemsystem

EntrepreneurshipEntrepreneurshipcompetitive entry and competitive entry and exitexit

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Structure, Trends, Performance,

Identify the key factors and trends important for the organization. How will things outside the organization effect those things that the organization wants to accomplish?

environmental analysis

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Competitive Advantage Structure Overall Economic Model

Resource Based Economy agriculture and mining

Capital Intensive Economydurable and non-durable goodsmanufacturing and producer services

Information & Innovation Based Economy

telecommunications and software

Competitive Advantage; Ricardo, 1815

Substitute for Industry Substitute for Industry Composition DataComposition Data

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Trends Reflect Goals of Any Economy

Supply: Mobility of Resources Demand: Global Competition Production: Information Products Adjustment:

Entrepreneur/Technology

Substitute for PEST AnalysisSubstitute for PEST Analysis

Paden, 1972

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Current PerformanceBased on Measures of Success

Industrial Vitality Mfg output had rebounded; Exports are rising New ventures & expansions create most jobs

Employment Vitality Labor force will grow slower than job growth High skill occupations as fastest growth

segment

Substitute for Regional Substitute for Regional Composition DataComposition Data

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Foundations and Functions

At this point institutional goals and objectives can be developed that move the organization in the preferred direction, doing so within the context which it has to operate

institutional goals

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Commerce & Community Affairs

Leadership:Leadership: Increase the capabilities of practitioners Infrastructure:Infrastructure: Physical social infrastructure

improvement Workforce:Workforce: Develop a skilled and adaptive workforce Capital:Capital: Access to capital for business growth/expansion TechnologyTechnology: Provide access to modern business practices Trade MarketsTrade Markets: Linkages between customers/ markets Industry Investment:Industry Investment: Retention, expansion and

attraction

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Albuquerque New Mexico

# 1. Provide high quality and efficient serviceefficient service to the public # 2. Improve public safetypublic safety services.# 3. Balance new construction & maintenance of

infrastructureinfrastructure# 4. Adopt & implement an economic vitalityeconomic vitality strategy.# 5. Foster the expression & appreciation of the cultureculture.# 6. Maintain stable neighborhoodsstable neighborhoods; provide affordable

housing# 7. Achieve sustainable developmentsustainable development, balanced

development & redevelopment, including infill development.

#8. Increase environmental protectionenvironmental protection & resource conservation

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Public Facilities Governance Taxes/Regulations Infrastructure Social Utilities

Market Institutions Competitive Climate Capital Access Human Capital Material Resource

Mobility

Community Betterment

Growth Management Area Redevelopment Employment

Opportunity Self Sufficiency

Enterprise Growth

Capital Investment Trade/Export

Promotion Production

Operations Entrepreneurial

Starts

A Typical Strategic Goals Portfolio

Similar Strategic Goals because of Similar Models and Interests

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Hierarchy, Chronology, Urgency

Because it is impossible to do everything that needs to be done, strategic planning implies that some organizational decisions and actions are more important than others.

set goal priorities

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Simple Hierarchical Plan

Development

Community Development

Vision

Public Goods

Component

Area/GroupConditionsComponent

Economic Development

Vision

Business Opportunities Component

Econ Marketplace

Component

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Tax/Regulatory

Climate

GovernmentAdministration

BusinessClimate

HumanCapital

Financial Capital

MaterialResources Investment

Trade/Export

BusinessAssistance

InventionInnovation

Civic Organization

Growth Management

EconomicOpportunity

IndustrySectors

CommunityBetterment

BusinessVitality

MarketCapability

PublicCapacity

Recruitment

RetentionExpansion

Program/Administrative Actions

Issues

Scope of Interests

Vigorous EconomicSystem

High Qualityof Life

SocialUtilities

Visions

InfrastructurePublic

Detailed Hierarchical Plan

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FoundationsFoundations

MaterialMaterialResourcesResources

Access toAccess toCapitalCapital

Tax/Reg.Tax/Reg.

ClimateClimatePhysicalPhysical

InfrastructureInfrastructure

PublicPublicServicesServices

HumanHumanResourcesResources

FunctionsFunctions

RecruitmentRecruitment and Retentionand Retention

Management &Management &ModernizationModernization

EntrepreneursEntrepreneurs& Technology& Technology

Trade Trade &&

TourisTourismm

Practitioner’s Priorities

JobJob CreationCreation& Retention& Retention

Tax BaseTax BaseGrowthGrowth

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World Class, High Performance

philosophy

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Principles for Economic Development

Context: Global Economy Industry Cluster Focus

Vision: High Quality Job

Creation Stable Tax Base

Mission: Business

Competitiveness Community Excellence

Adapted from "Emerging Principles in Economic Development: A Benchmarking Tool", June '95.

Goals/Objectives/Scope: Public Facilities Capacity Community Betterment Business Vitality Marketplace Capability

Organization: Staff Regional Collaboration Partnerships

Process: Comprehensive Strategy Strategic, Mission Driven Customer Orientation Measurement/Evaluation Learning

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Malcomb Baldridge Approach

Visionary Leadership/Public Responsibility Strategic Planning: Focus on the Future;

Management by Fact Customer Driven Excellence/Market Focus Information/Analysis: Organizational & Personal

Learning Human Resource Focus: Valuing Employees &

Suppliers Process Management: Agility, Manage for

Innovation Business Results: Focusing on Results/Creating

Value

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World Class OperationsFUNCTION PRINCIPLES Facility Mission Best of Class Products/Services Leading Edge The Customers Customer Oriented The Benefits Cost Justified The Staff Skilled, Motivated Competition Adaptive Operations Lean Operations Administration Flat Management Structure Facilities Integrated Processes Risk Analysis Issue Management Financial Plans Minimized Expenses

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Define the kinds of work which differentiates your organization from others

core competencies

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Competitive Differentiation Product:

Specialization Product Quality Brand Identification

vs. Low Price Leader Marketing:

Distributor Push vs. Consumer Pull

Channel Selection

Processing: Technological

Leadership Vertical Integration Low Cost Position Leveraging

External Relations: Relations with Parent

Co. Relation to Host Govt

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Public Agency Competencies

Capacity Model (Common at State Level) Delivery System (process/partner)

Improvement Customer Responsive Services (customer

centered) Capacity/System Expansion

Services Model (Common at State Level) Information: Information and Training Consulting: Case Work; Customized Counseling Financing: Grants and Loans

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Systems Competencies Management Functions Model

Planning: Anticipating The Environment Administration: Managing for Success Delivering: Product or Service Quality Evaluating: Tracking Performance

Product Life Cycle Model Invest: New Products under Development Growth: Products with Growing Importance Foundation: Products meeting customer needs

Harvest: Products no longer at the leading edge

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Benchmarks and Scorecards

assessments

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Internal Analysis -- SEA Resource Level [Input Objectives, Input

Indicators] Inputs are the resources put into an effort

Activity Levels [Activity Objectives, Activity Indicators] Activity measurements consider the methods and procedures used to carry out the program.

Output Levels [Output Objectives, Product Indicators] Outputs are the direct results, i.e. the products produced from the work performed.

Results Levels [Outcome Objectives, Impact Indicators] Outcomes state the benefits

GAAP: Service Efforts and Accomplishments

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Balanced Scorecard

Finance Perspective- Leverage- Cost Benefit- Admin Cost

Customer Perspective- Customers Served- Customer Satisfaction

Learning Organization- Employee Satisfaction- New Initiatives

Internal Processes- Performance Metrics - Plan vs. Performance

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Conclusion Questions

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