2008 9.17 Team NEO Emerging Leaders Advisory Council

Becoming a Team Member Team NEO Emerging Leaders Advisory Council Meeting Kickoff Meeting September 17, 2008

Is Cleveland “Dying”?

According to Forbes.com, Cleveland, Canton and Youngstown are among America’s 10 Dying Cities despite the facts…

Cleveland Plus is ALIVE

Positive NEO GRP Growth: 30% Higher than 15 Years Ago

Growing Industries, Diversifying Economy:

Professional, Scientific & Technical Services up 74%

Information Industry up 64%

Management of companies and enterprises up 88%

Strong Industrial Real Estate Market: Low Vacancy Rate

More than $4 Billion in Active Investments/Projects

Regional Vitality:

29 Colleges/Universities:175,000 students, 26,000 degrees/yr

Largest performing arts center in US outside of NYC

Downtown Cleveland housing: 93% occupancy/10,000 units +

Cleveland Plus Earns Top Honors:

Ranks better for Young Professionals than Orlando, Las Vegas, Miami

Top 20% of best cities for outdoors

Ranked above LA, San Fran, NYC, Minneapolis and Orlando for Entrepreneurs

Ohio has more VC firms than any state not on the coast

Agenda

Introductions

Deeper Dive: Regional Economy

Team NEO: Mission, Metrics

Cleveland Plus Business: Our Work, Next Steps

Advisory Council: Objectives

Projects for Consideration

Next Steps

NEO Per Capita Income in Top Third of All Metro Areas NEO Atlanta Portland Charlotte Raleigh

Northeast Ohio Gross Regional Product (GRP) Increasing

Higher Skilled Employment Growing

Growth Industries

Team NEO: Mission, Metrics, Work

NEO Regional Economic Development System Funding and Leadership: Greater Cleveland Partnership,FFEF *(Other Metro Chambers in part) One Regional Brand: (Created by GCP, Positively Cleve CVB, Team NEO) Retain/Grow Largest Industry (Manufacturing): Grow Existing Businesses: Chambers of Commerce, Local Govt. Attract New Businesses : Attract Venture Capital for Emerging BioMed Industry: Launch Entrepreneurship: Incubate future technologies: Goal: Accelerate NEO Economic Growth

Regional Business Attraction Agent: - Northeast Ohio’s Sales Force

Mission: Unite the Region to Attract High Growth Businesses to Northeast Ohio

Objectives: Increase high quality targeted lead flow and execute effectively to increase NEO investment

Strategies:

Targeted marketing leveraging Cleveland+ brand

Focused sales team sells business case by connecting prospects to State and local resources

Institute Economic Dev System to close deals

Engage and Inform NEO Business Community as Ambassadors, Partners

15 Employees

$3 Million Budget Funded by:

30% Fund for our Economic Future

25% Cleveland Plus Marketing Alliance

25% Metro Chambers of Commerce/ED Orgs

10% Private Support

Serve and Promote 16 County Region

Joint Venture Metro Chambers of Commerce

22 Person CEO Regional Board of Trustees

Small Organization Serving Large Region

Partners/Funders: The Greater Team

Team NEO Metrics and Goals: 3 Year Plan Increase Business Investment Opportunities and Annual Payroll for Continuous Regional Benefit *5% will be Minority-Owned Businesses $46M 37 95 2007 Actual $70M $50M $25 M New Payroll Added 9 36 2007 Goal 100 100* New Qualified Leads 20 13 Leads to Short List 2009 Goal 2008 Goal Objectives

Cleveland Plus Business: Our Work

What is Cleveland Plus?

Cleveland Plus = Inclusive, Excellence, Positive

Covering 16 Counties

6000 Square Miles to Promote

Business + Travel + Talent Recruitment

One Cohesive Marketing Campaign

One Positive Attitude

The Case for Regional Marketing

Competition among regions intensified - effective marketing a key differentiator (St. Louis, Nashville, Kansas City, Indianapolis)

NEO out-spent and out-hustled on marketing by other regions that do not have the assets we have

Our lack of competitive marketing was an impediment to the economic health and development of the region,

because it:

Hinders recruitment and retention at all levels

Negatively affects decisions about investment, expansion, and relocation

Dampens tourism

Umbrella brand: identity and messaging

Research based, regionally inclusive

Developed tools for local use: chambers, EDOs, CVBs, attractions, businesses

Business recruitment (Team NEO)

National “earned media” story placement

Talent attraction and retention

In-region fact-based campaign

Visitors/Convention advertising

Marketing Campaign Tactics Increase Awareness and Advance Perception of Region

Aultman Hospital

AultCare

Cleveland Clinic

Cleveland Foundation

Cleveland Mus of Art

Cleveland Orchestra

Cleveland Playhouse

Charter One

Developers Diversified

Eaton Corporation

Ernst & Young

First Merit

Parker Hannifin

Playhouse Square

Positively Cleveland

RPM International

Sherwin Williams

Squire Sanders & Dempsey

Steris

Team NEO

Timken

The Cleveland Foundation

University Hospitals

Westfield Insurance

Cleveland+ Support: $2.5 Million/yr. Budget

First Energy

Forest City Enterprises

GAR Foundation

George Gund Foundation

Grtr Cleveland Partnership

KeyCorp

Lubrizol

Medical Mutual of Ohio

Mercy Medical Center

National City Corporation

Ohio Bus Dev Coalition

What is Cleveland Plus Business?

Cleveland Plus Business

Northeast Ohio’s Business Climate and Opportunity

Targeted New Business Recruitment Effort

16 Counties Collaborating, Earning Equal Opportunity

6000 Square Miles to Promote

One Cohesive External Marketing Campaign

Business Attraction Process Lead Management Process Prospecting Lead Generation Lead Execution

Attend target-rich events

Targeted brand-building efforts

Invest in national trade media

Invest in PR – in and out of the region

Proactively contact individual companies that are identified

By Industry

By “Trigger Event” at Company

Through Leveraging an Existing Relationship

Market the region to site selectors based on benefits through

Industry Events

Location Trips

Fam Events

Leverage in-region marketing campaigns and events to cultivate referral sources

Team NEO qualifies the Lead

Entity commits resources

FTE or consultant

Timeline

18-36 months

Revenues ≥$10M

Capital Investment ≥ $M

Jobs ≥ 20

Team NEO Assesses NEO’s alignment with Lead

Qualify NEO in eyes of site selector

Qualify and Assemble sites

Assemble data of regional assets such as work force and logistics

Lead Creates a Short List

Team NEO Facilitate Site Visits

Lead Selects Site

Metrics

Number of New Qualified Lead

Number of qualified leads that result on short list

Leads' contribution to new payroll in NEO

Generate Impressions Sales: NEO Region Economic Development System Close Deal # qualified leads # short list $Payroll Metrics Qualify Leads Qualify NEO Negotiate Deal Increasing Local Role

Direct Attraction Increases Leads in Growth Areas: Improves Close Potential Support Regional Effort Cleveland+ Business Tiered Marketing Strategy Increases Qualified Leads, Opportunity Highly Targeted Industry Attraction -Collateral, Web, PR -Site Visits, Events -Research, Creative Core Marketing Needs Site Consultant Targeted Marketing Full Year: -6 Mkt Visits -2 Big FAM, 6 Mini -Core SS Industry Events Key Industry/Market Infusion -Key Industry Collateral -Partner Event Support

Core Attraction Marketing: Support ED System Direct Marketing Collateral for Regional Use Trade Show Booth, Event Presence “ Do the Math” Video Tells Story Clevelandplusbusiness.com Designed for Site Selection

Core Marketing Needs: Engaging Community

Annual State of the Region Meeting: (April)

150+ regional C-level executives and civic leaders discuss regional economy with major urban mayors

Economic Development Impact Awards: (June)

Attracts 350+ NEO community leaders to recognize the best achievements in economic development – those adding jobs and adding positive economic growth.

Economic Outlook Conferences (November)

Traveling conference to share economic update/outlook with 300+ regional professionals in 3 areas of NEO

Regional Economic Reviews:

Only source of up-to-date economic information for the entire 16-county region; covered by all regional media, distributed to 10,000 professionals nationally quarterly

Monthly e-newsletter: reporting regional economic development news to 3000+ business and community professionals

Advisory Councils: Senior Leaders, Emerging Leaders, Marketing, Real Estate

Site Selectors Offer Low Hanging Fruit

From the outside, it is difficult to identify companies actively researching sites

In reality, many companies have no interest in expanding or relocating to a new site

Companies can be reached through Site Selectors. They are known to be interested

Set Of Companies That Could Potentially Be A Fit For NEO Company Interested in sites for expansion or relocation Company with no interest in expansion or relocation Site selector clients ? Interest level in sites is unknown to Team NEO ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?

Site Selector Conducts On-Going Research Site Selector begins working with company Company Operates at Current Site Company Researches Potential Sites Through Site Selector Company Researches Potential Sites Internally Company Creates a Short List Company Selects a Site Site Selection Process Marketing To Site Selectors Can Influence Current As Well As Future Searches Example: Site Selection for ONE Company Company Operates at Current Site Company Researches Potential Sites Through Site Selector Company Researches Potential Sites Internally Company Creates a Short List Company Selects a Site ? Company Operates at Current Site Company Researches Potential Sites Through Site Selector Company Researches Potential Sites Internally Company Creates a Short List Company Selects a Site ? Company Operates at Current Site Company Researches Potential Sites Through Site Selector Company Researches Potential Sites Internally Company Creates a Short List Company Selects a Site ? Company Operates at Current Site Company Researches Potential Sites Through Site Selector Company Researches Potential Sites Internally Company Creates a Short List Company Selects a Site ?

Key Market Infusion and Targeting

Beginning Stages:

BioMedical (Cardiovascular, Imaging)

Minority-Owned Businesses

Future:

Advanced Energies (Wind Turbine Mfg.)

Chemicals/Polymers

Increased International Attention

Results To Date: Perceptions Changing

FROM:

My perception was of a struggling rust-belt town.

I didn’t know anything about it, so I couldn’t describe it.

Very industrial, blue-collar town. Major manufacturing with limited quality employment base.

Not particularly excited about the region - primarily due to a lack of knowledge and info.

Perceptions of high cost, union workforce, rust-belt, primarily manufacturing focus, economically challenged due to loss of legacy manufacturing.

TO:

Progressive, tech savvy, cultural, regional

Will probably lead me to come back and entice customers to the area.

More diverse than previously thought. More confident in selling NE Ohio.

Cost of living and doing business more favorable than previously perceived.

Northeast Ohio is in a place to support expansion!

Cleveland Plus has tremendous potential as a progressive region with variety of great sites and wonderful cultural arts.

You succeeded in positively impacting my perceptions.

Generate Impressions NEO Region Economic Development System Close Deal Qualify Leads Qualify NEO Negotiate Deal $46M New Annual Payroll 1500 Jobs *Goal $25M Total Regional Benefit $100 M Per Year 95 New Qualified Leads *Goal - 30 2007 Metrics # qualified leads # short list $Payroll

Generate Impressions NEO Region Economic Development System Close Deal Qualify Leads Qualify NEO Negotiate Deal $15.6M New Annual Payroll 249 Jobs: $63K/yr Avg. Salary 57 New Qualified Leads 2008 YTD Metrics # qualified leads # short list $Payroll

2008 Wins

Company Primary Business Employment

Group Travel Planning Corporate Event Planning 25

M2M Imaging Imaging Components 30

ViewRay Image Guided Radiation Therapy 93

Glenda* Medical Device for Heart Treatment 25

Clear Catheter Medical tubing 15

Affymetrix Pharmaceutical reagents 61

*Client has requested that we keep company name confidential

Business Attraction : Project Updates

Get Smart

Global Media Monitoring company

135 jobs & $5.0 MM payroll

University partnership with MBA and Ph.D.

Keys: Location, Talent & Costs

Breeze

International Wind Turbine manufacturing company

150 jobs, $5.6 MM payroll, $25MM investment

Lead generated through relationships with local business, ED pros and ODOD

Keys: Location, Workforce, Transportation & Logistics, State Energy Policy

Business Attraction : Project Updates

Irish

Steel processor, fabricator, and cutter

100 jobs and capital investment of $30 MM

Keys: Location, workforce, logistics

Callie

Contact center outsourcer with first US operation

400 jobs & $6.5 MM investment

Partner generated lead

Keys: Workforce, real estate

Cleveland Plus Business: Next Steps OBJECTIVE: Increase high quality targeted lead flow and execute effectively to increase NEO investment

Best in Class Regional Business Attraction

Lead Generation

Extensive knowledge, strong pitch on key industries, assets, issues

High national visibility of key industries, assets, Globally active

Strong working relations with site consultants, R/E professionals

High impact campaign at targeted companies

Easy, comprehensive web-based information

High visibility in the community and with other Lead Generators

Lead Execution

Ability to convene and influence “all the players”, work as a Team

Visible, trusted lead-sharing and management process

Fast, accurate response presenting the right regional assets

Effective relations with State, Counties, Cities, Chambers

Effective relations with Real Estate, Workforce providers

Engaged business/community leadership to “make the sale”

Consistent process across the region, roles clear and followed

Team NEO’s Strategic Plan Update Is Focused On Achieving Long Term Sustainability The Objective The Challenge Update Team NEO’s current strategy to achieve long term sustainability Engagement Overview: Objectives

Achieve a balanced budget for 2009 and determine a sustainable financial plan for the future

Achieve alignment among the key stakeholders as to Team NEO’s:

Scope and scale of operations and mix of services

Evaluation metrics

Sources of funding

Governance structure and board engagement

Key Topics Talent Attraction, Scale of International Attraction, Creating Regional System, Increasing Regional Business Engagement

The Work Plan Allows for Collaboration Within And Across Issue Teams Engagement Overview: Timeline Summary Define Strategic Intent Define Transition Needs Define Strategic Plan Define Implementation Plan Finalize 2009 Budget Develop Long-Term Budget Prepared for the Teams

Strategic Intent

Initial Fact Base

Project Plan

Compile Fact Base Evaluate Options Issue Team Activities for Board Retreat Board Retreat I Agenda

Fact Base Presentations (by Issue Team)

Large group dialogue

Issue Team Breakout Sessions to refine Strategic Hypotheses & Evaluation Plans

Board Retreat II

Each Issue Team:

Evaluate Hypotheses

Refine Strategy

Integrate with other issue teams

Prioritize Initiatives

Identify Required Resources (people & funding)

enlight/Issue Teams Work Based On Feedback enlight/Steering Committee Compile To Present At Board Retreat II

Refined Strategies, Priorities, and Resource Needs from Each Issue Team

Holistic Strategy

Revised 2009 Budget (if nec.)

Proposed Long-Term, Sustainable Funding Plan

Board Retreat II Agenda

Share Strategy

Present 2009 Budget

Propose LT Funding Plan

Attain Buy-In

Develop Transition Plan Priorities

Phase I Phase II Phase III Issue Team Activities Staff Retreat Refine 2009 Balanced Budget Evaluate Hypotheses Refine Strategy Develop Fact Base Form Strategic Hypotheses Balance Initial 2009 Budget Board Retreat I June July August September October November December January

Emerging Leaders Council Mission, Projects and Discussion

Team NEO Emerging Leaders Advisory Council Mission

Team NEO’s Emerging Leaders Advisory Council will serve as a platform for Northeast Ohio’s next generation of business leadership to provide insight and input to regional business attraction so as to further accelerate our region’s growth.

Project/Discussion Topics