Megatrends of Economic Development and How to Compete in ED Today

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STRATEGY MATTERS

Janet Ady

President & CEO

Megatrends of Economic Development and

How to Compete in ED Today

Economic Summit

Norman Economic Development Coalition

Thursday, April 16, 2015

22Norman Economic Development Coalition| © 2015 Ady Advantage | April 16, 2015 2

33Norman Economic Development Coalition| © 2015 Ady Advantage | April 16, 2015

Representative Clients

3


The Site Selection Process

4


Four Drivers of E.D. Projects

5


Five Core Operating Costs for Comparison

6

Region-specific:

1.

2.

3.

Site-specific:

4.

5.



Megatrend #1: Elimination of Risk

8

What’s driving it:

• Avoidance of “surprises”

• Competitiveness of economic development field


Megatrend #1: Elimination of Risk

9

Examples of how it plays out:

• High level of interest in availability and productivity of

people at various skill levels

• Certified Sites programs

• Other forms of “readiness”

• Interest in state’s fiscal position and stability of

regulatory/policy platforms

• Interest in long-term cost and availability of water,

electricity, and natural gas


Megatrend #2: Increasing Role of Regions

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• Availability of data

• Better reflection of labor pools than either state or

local jurisdictions

• Close enough to know the local operating

environment, yet distant enough to have a single POC


Megatrend #2: Increasing Role of Regions

11

Examples of how it plays out:

• Some searches now start at the regional level

Have to wave the flag for the whole state

LEDOs need to treat the region and the state as

“customers”

• Always think in terms of the pooled assets that regions

afford local groups

• Work very hard to make sure stakeholders are on

board – dissonance on this point can break a deal

• The locals will always be at the table at the end of the

day


©2015 Ady Voltedge

State, Regional and Local Roles

in Economic Development

12


“Regionalism does not

mean homogeneity.

It means just the

opposite: celebrating

differences within the

region.”

– Janet Ady


Megatrend #3: Competitiveness Among EDOs

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• The maturation of the economic development field

• The increased sophistication of relocating/expanding

companies, especially as incentives have proliferated

• A very limited pool of relocating and expanding

companies


“Competition for high quality jobs will

intensify in the 21st century and the

communities that are prepared to

address the needs of existing and

relocating businesses will be most

successful in capturing new

investment.”

-- Fantus Study, 1997



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Examples of how it plays out:• Increased emphasis on BRE programs

Your BRE program is your competitor’s business recruitment

program

How you treat your current businesses is the best indicator of

how you’ll treat my client

• Knowing your value proposition is key

• Branding to communicate your value proposition sets you apart

• Absolute synchronization among stakeholders and local, regional

and state players is essential

• More high-profile, direct-by-company searches

• Community image and reputation matter



17

Examples of how it plays out:• Increased emphasis on BRE programs

• Your BRE program is your competitor’s business recruitment

program

• How you treat your current businesses is the best indicator of

how you’ll treat my client

• Knowing your value proposition is key

• Branding is to communicate the value proposition is also required

• Absolute synchronization among stakeholders and local, regional

and state players is essential

• More high-profile, direct-by-company searches


A Peek Into My Inbox

18

3,315 items and counting


“The antidote to risk

is readiness

and alignment.” –

Janet Ady


Dimensions of Preparedness and Alignment

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Organizational Strategy:Budget/Funding

21


Organizational Strategy:Organizational Structure

22


Organizational Strategy:ED Strategic Plan

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Organizational Strategy: Incentives Strategy

24


Economic Assets: Infrastructure

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Growing in importance

Virtually always a key expansion/relocation consideration

Programs are now catching up to the need

In many cases, companies are leading the charge

Economic Assets: Workforce


Economic Assets: Quality of Life

27



“Quality of life doesn’t matter at all…. Until it’s all that matters.”

-- Janet Ady



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Economic Assets: Site Preparedness



30

Positioning:Value Proposition/Targeting


Positioning:Targeting


Positioning:Brand

Much more than a logo, but also, a logo

Brand standards

Brand story

Unique aspects of branding a place


Positioning:Marketing



34

Programs:Business Start-Up

Pick your horses

Leverage other resources



35

Programs:Business Retention and Expansion (BRE)

80/20 rule

How you treat…

Best defense

Reactive, proactive, strategic



36

Programs:Business Recruitment

Zero-sum game?

Increasing stakes

State, regional, local roles

Requires focus and resources

Competition is as strong as it’s ever been

More company-directed searches



Credit: Momastery.com


Thank You

608.663.9218

[email protected]

www.linkedin.com/in/janetady/

39

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Megatrends of Economic Development and How to Compete in ED Today