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Presentation from Wisconsin Basic Economic Development Course on Strategic planning

Presentation from Wisconsin Basic Economic Development Course on Strategic planning


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  • 1. Wisconsin Basic Economic Development CourseStrategic Planning for Economic Development
  • 2. Economic development is not the act of marketing industrial sites.It is the art of building places that attract talentedpeople, business, innovation, and investment, in ways that benefit all community residents.Strategic Planning  Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 2
  • 3. SOME ORGANIZING APPROACHES• Business attraction, retention and expansion strategies• Entrepreneurial development strategies• Value chain strategies• Target industry and industry cluster strategies• Creative economy or knowledge economy strategies• Economic gardening• Main Street – economic restructuring, design, promotion, organization Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 3
  • 4. A CHOICE: STRATEGY OR TRENDBy knowing where we have been and wherewe are today, we can understand where we FUTURE VISIONare headed, and take actions to reach analternative vision of the future. LONG AND PAST CURRENT CONDITIONS SHORT TERM REALITY MARKET FORCES TRENDS FUTURE OUTCOMES Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 4
  • 5. A CHOICE: STRATEGY OR TRENDWill you accept what you get or plan to get whatyou want? When we plan we…• Shape our community’s future• Build support for a common agenda• Define the purpose of a group• Balance community goals with available resources• Simplify decision-making• Provide a base for measuring change Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 5
  • 6. INCITING A CHAIN REACTIONWisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 6
  • 7. WHAT IS A STRATEGIC PLAN?A “roadmap” to where your community can be.• Based on past and current situation and trends• Forward-looking• Vision based in reality• Defined by organizational mission and values• Establishes goals and objectives• Lays out key initiatives with action steps• Identifies needs and assigns responsibilities• Identifies measures and benchmarking standards• Includes a process for evaluation and adjustment Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 7
  • 8. PRE-PLANNING ACTIONSThe following activities will set the stage for theplanning process:• Determine who (individual or team) will convene the strategic planning process• Establish a scope of work – what will be the result of the strategic planning process• Determine who (internal or external) will conduct the strategic planning process• Identify a methodology, activities, and schedule for the planning process Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 8
  • 9. POTENTIAL STRUCTURES• Project Management Team – Usually made up of staff, may work on plan elements or liaison with consultant• Steering Committee – existing board or appointed committee overseeing process and providing direction• Advisory Committee –broad representation to review issues and make recommendations• Task Forces – made up of people with specialized skills or knowledge to oversee specific work activities• Implementation Committee–a separate committee created to oversee the implementation process Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 9
  • 10. SHOULD YOU USE A CONSULTANT?• Advantages – Specialized knowledge and resources (ex., industries and approaches, access to databases and analytical software) – Brings an outside perspective – Experience with the planning process – Neutral party who may be able to build consensus – Can bring credibility to the plan• Disadvantages – Differing quality of consultants and the effort they make – May miss the nuances of local politics – Cost (strategic plans will start at $20,000 for a simple one) Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 10
  • 11. HAVE A COMMUNICATION PLANYou need to manage how the story is told to thecommunity• Create a relationship with the media• Use the internet – website, blog, forum, email• Publish periodic newsletters or flyers• Talk to local organizations and at public meetings• Post information – library, post office, government buildings, project sites, etc.• Respond constructively to criticism Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 11
  • 12. SITUATION  TARGET  PATH VISION-BASED OR GOAL-BASED PLANNING PRIORITIES ASSESS INPUT ACHIEVABLE STRATEGIES & IMPLEMENT- REVISED GOALS OBJECTIVES ACTION PLANS ATION STRATEGIESANALYSIS RESOURCES MONITOR Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 12
  • 13. SCENARIO PLANNINGAn approach used independently or with other planningtechniques• Identify significant trends or external forces• Imagine alternative futures and consider how they may impact the organization and its goals• Suggest ways to respond to these scenarios• Identify common threads in the responses• Select the most likely changes and implement strategies to anticipate them Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 13
  • 14. ISSUE-BASED PLANNINGShort term in nature; tends to be used whenorganizations face internal challenges (ex., lack ofcredibility, poor customer service perception)• Identify current issues facing the organization• Suggest reasonable approaches to address the issues• Compile adopted approaches into a plan• Monitor results and adjust as necessary Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 14
  • 15. ALIGNMENT PLANNINGShort term in nature; often used to tweakstrategies or resolve internal conflicts orinefficiencies• Begin by outlining mission, programs, and required resources• Identify what is working and what is not; consistencies and inconsistencies• Determine what adjustments should be made Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 15
  • 16. STAKEHOLDERS INDUSTRY GROUPS FUNDERS BUSINESS PROPERTY ELECTED OWNERS OFFICIALS ECONOMIC DEVELOPMENT GOVERN- ED STAFF MENT PARTNER ORGANIZ- GROUPS ATIONS CITIZENSWisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 16
  • 17. SEEKING STAKEHOLDER INPUT• Surveys – business/workforce/citizen• One-on-one interviews• Focus group sessions• Workshops or open house events• Exercises – targeted or general audiences• Public informational meetings or listening sessions• Blogs and online forums• Media monitoring Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 17
  • 18. DEALING WITH STAKEHOLDERS SATISFY MANAGE INFLUENCE MONITOR INFORM INTEREST Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 18
  • 19. VISIONING• MISSION – a broad statement of the organization’s reason for existing; used to guide help establish its goals and to guide decision-making• VALUES – operating principles adhered to by the organization; statement of core beliefs• VISION – a long term view of an ideal future scenario; the outcome an organization hopes to achieve through its actions Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 19
  • 20. SITUATIONAL ASSESSMENTWhere are we starting from?• Input from businesses, industry groups, unions, property owners, other “invested” groups• Input from the general public• Review available studies and other information• Reconnaissance and objective assessment (environmental scan)• Analysis of available data – economic indicators, industry, workforce, demographics• Competitive and comparative analysis Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 20
  • 21. SOME ASSESSMENT TECHNIQUES• SWOT – Strengths, Weaknesses, Opportunities, Threats• LAND – Liabilities, Assets, Needs, Desires• PEST/PESTLE – Political, Economic, Social, Technological, Legal, Environmental• STEER – Socio-cultural, Technological, Economic, Ecological, Regulatory• VRIO – Value, Rarity, Imitability, Organization Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 21
  • 22. VRIO VALUE  RARITY  IMITABILITY  ORGANIZATION VALUE RARITY IMITABILITY ORGANIZATION COMPETITIVE IMPLICATION NO DISADVANTAGE YES NO PARITY YES YES NO TEMPORARY ADVANTAGE YES YES YES NO UNEXPLOITED ADVANTAGE YES YES YES YES SUSTAINED ADVANTAGE• Does the asset or capability have VALUE to the customer?• How RARE is the asset or capability?• How easy will it be for others to IMITATE the asset or capability?• Is the ORGANIZATION ready to exploit its advantage? Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 22
  • 23. ASSESSMENT TOOLSPlace Dynamics – Assessment considers up to 275 characteristics • Organizational structure and leadership • Downtown business district • Elected officials and community • Tourism development support • Work force, education, and training • Funding for economic development • Economic development marketing • Economic development research • Communications and outreach • Economic development staffing • Economic development tools • Collaboration and networking • Community infrastructure • Citizen involvement • Buildings and sites • Economic development planning • Quality of life • Economic development • Community appearance implementation • Sustainability • Business attraction, retention, and • Local ordinances and regulatory expansion framework • Entrepreneurship and small business • Disaster susceptibility and mitigation development planning • Retail development Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 23
  • 24. SETTING GOALSGoal – the general purpose toward which anendeavor is directed• Long term, broader in scope, and may be intangible (as contrasted with objectives)• Keep it simple – what, why, and how• Keep it positive – focus on what you will achieve; not what you will avoid Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 24
  • 25. DETERMINING OBJECTIVESObjective – An observable outcome contributing tothe achievement of goals.• SMART – Specific, Measurable, Achievable, Realistic, Timed• By [DATE], [WHO] will [WHAT] resulting in [RESULTS] by [DATE].• Have we anticipated obstacles?• Is it already being done by some other group?• Will it lead to constructive action?• Will the results be commensurate with the effort? Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 25
  • 26. GOAL/OBJECTIVE SETTING TOOLS• Affinity Technique – process used in groups to identify issues and group them into related themes around which goals and objectives can be developed• Nominal Process Technique – a tool used to gather stakeholder comments and jointly rank them• Goal Grid – a tool used to sort issues and determine what to achieve, preserve, avoid, or eliminate• CATWOE – a process for considering multiple viewpoints in decision-making Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 26
  • 27. NOMINAL PROCESS EXAMPLE SOLICIT IDEAS GROUP SIMILAR IDEAS VOTE TO RANK THEM Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 27
  • 28. GOAL GRID NO DO YOU HAVE IT? YES YES YES ACHIEVE PRESERVE DO YOU WANT IT? DO YOU WANT IT? AVOID ELIMINATE NO NO NO DO YOU HAVE IT? YESWisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 28
  • 29. CATWOE• CUSTOMERS – beneficiaries of actions – may be several different groups• ACTORS – people involved in implementation• TRANSFORMATION – the changes that will result, inputs and outputs, process steps• WORLD VIEW – the “big picture” into which the situation fits• OWNER – decision makers, people who can help or hinder progress• ENVIRONMENTAL CONSTRAINTS- logistical, technical, legal, financial, etc. Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 29
  • 30. STRATEGIES AND ACTION PLANSStrategies are comprised of programs or initiatives.These are in turn made up of specific action steps.• Initiatives • Action plans — Value — What is the sequence of steps? — Appropriateness — What outcome is expected? — Feasibility — Who is responsible for what? — Acceptability — What resources are needed? — Cost-benefit — What is the timeline? — Timing — How is progress measured? Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 30
  • 31. STRATEGIC PLANNING TOOLS• Balanced scorecard • Gap analysis• Cause and effect diagram • Pairwise comparison• Critical success factors • Pareto analysis analysis • Risk analysis• Decision trees • Six thinking hats• Force field analysis • Storyboarding• Futures wheel Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 31
  • 32. BALANCED SCORECARDA tool for aligning mission, resources,change, and outcomes (modified): LONG TERM COMMUNITY• Long term community perspective – PERSPECTIVE mission, values, and vision of the organization• Customer perspective – desires and expectations of the INTERNAL organization’s clients CUSTOMER STRATEGY PROCESS• Internal process perspective – PERSPECTIVE PERSPECTIVE resources, staffing, and process• Learning and growth perspective – self improvement; measurement, evaluation, LEARNING & and adjustment GROWTH PERSPECTIVE Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 32
  • 33. CAUSE AND EFFECT DIAGRAM Fishbone diagram - 5 “whys” EFFECT Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 33
  • 34. FORCE FIELD ANALYSIS FORCES FOR CHANGE FORCES AGAINST CHANGE ASSIGN A WEIGHT WHAT CAN BE CHANGED? DESCRIBE THE CHANGE WHAT CAN BE STRENGTHEND? YOU WANT WHAT CAN BE WEAKENED? TO SEEWHAT SHOULD BE THE PRIORITIES? TOTAL _____ _____ TOTAL Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 34
  • 35. IMPLEMENTATIONEvery plan should have an implementation plan, action plan,or work plan that lays out all of the required steps to enactthe strategies, with the following information:• What? – what are the steps involved?• Why? – how do these actions contribute to the strategy?• Who? – what person or organization will lead this effort?• When? – what is the timeline for action?• How? – how are the actions intended to be carried out?• Needs – what resources are required?• Measures – how will progress, and ultimately success be measured? Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 35
  • 36. MEASURING PERFORMANCE• Monitoring – tracking a set of conditions over time to reveal trends or assess current status – Your own “economic indicators” – Pick the best data to measure – availability, timeliness, matched to issues you want to address – Report it to the community• Benchmarking – measuring a set of conditions relative to a set of comparable or competitive places – Not necessarily just data – policies, programs, strategies, etc. – Assess whether strategies are having real impact – Importance of selecting good comparables / competitors; why “the best” may not be right for your community Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 36
  • 37. MEASURING PERFORMANCE Impact Assessment – Sustainably Harvested Wood ProductsType of Capital Indicator MeasureIndividual – How will your strategy impact the stock of skills and physical More producers/suppliers are acquiring new skills in order to capture Measure: Number of producers/suppliers partnering with this project whoand mental healthiness of people in a region? demand. are acquiring new skills. New skills: changed production, operations, logistics practices to participate. Something done differently.Social – How will your strategy impact the stock of trust, relationships, and New institutional partnerships lead to new resources, better strategies, and Measure: Structures in place that create local ownership or influence overnetworks that support civil society? improved regional infrastructure. wealth. Measure we will use – A regional certification support center exists. New allies provide opportunities for value chain construction. Measure: Number of builders and retailers in our emerging value chain and types of help being offered. More deals, where a buyer buys something more than once, in targeted markets the business can serve. Measure: Quantity, frequency, and content of purchases. Measure: Development of networks and networking opportunities among buyers.Intellectual – How will your strategy impact the stock of knowledge, Buyers in regional/urban markets will better understand the value and Measure: Number of buyers who become market partners/allies.innovation and creativity? benefits of being a part of the CA certified wood products value chain. Measure: Number of producers participating in the chain and operating in More people are willing to bend outside of what they do or learn different ways that support wealth creation. things to make this work. Measure: How do producers articulate the benefits to participating in the value chain? How is this different from “business as usual” for them?Natural – How will your strategy impact the stock of unimpaired Improved forest ecosystem health. Measure: Number of landowners actively managing and acreage beingenvironmental assets in a region? actively managed. Measure: New acres under management as a result of the regional certification support center.Built – How will your strategy impact the stock of fully functioning Producers will have the capacity to provide green and local wood products Measure: Investment in new equipment or technology to meet demand.constructed infrastructure? to regional and urban markets. Tracking method: Investments made by buyers, producers, distributors, etc. who become value chain partners are tracked through routine contact.Financial – How will your strategy impact the stock of unencumbered More producers and buyers will increase their earnings through new market Measure: Number and value of producers and buyers that are re-investingmonetary assets at the individual and community level? relationships and re-invest those earnings in their operations. earnings from the value chain in their operations (or in other forms of wealth).Political – How will your strategy impact the stock of power and goodwill More organizational players are engaged in and actively supporting the Measure: Number of organizations engaged and how they’ve participatedheld by individuals or organizations that can be used to achieve desired value chain. (giving referrals, coming to meetings, opening doors, etc.)ends in the region? Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 37
  • 38. EVALUATION & ADJUSTMENT• Annual review – What is the current condition and how does it compare to last year, and the base year of the plan? – Have timelines been followed and initiatives been carried out as outlined in the plan? – Have the strategies and initiatives in the plan had the results that were anticipated? – Have circumstances changed significantly enough to warrant changes to the strategies?• Five-year review – More comprehensive review of progress and conditions – Update goals, strategies, initiatives, work plan Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 38
  • 39. KEYS TO SUCCESS• Commitment from internal and external leadership• Broad support from industry, organizations, partners, and the public at- large• Basis in economic reality• Attainable objectives linked to capability and funding• Focused on the most appropriate activities• Flexibility to adapt as circumstances change Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 39
  • 40. FAILURE – PLANNING PROCESS• Failure to develop an understanding of the procedure before the planning process begins• Not providing meaningful engagement the people and organizations who will be impacted during the planning process• Not including a broad cross-section of leadership in the planning process• Failure to develop goals as a basis for planning• Becoming engrossed in current problems and losing sight of the long term• Creating a wish-list of action items, but failing to address key problems• Failing to make realistic plans• Focusing on short term measures that ignore long term issues Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 40
  • 41. FAILURE - IMPLEMENTATION• Failure to ensure that leaders understand what the plan is and what it can accomplish• Not giving managers and department staff sufficient information and guidance to implement the plan• Not incorporating the plan organization-wide to ensure consistent actions and decision-making• Failing to use plans to measure the performance of those charged with implementation• Doing periodic planning and then forgetting it – letting plans “sit on the shelf”• And of course… it could be that the plan is just not very good Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 41
  • 42. ADDRESSING SUSTAINABILITY• ECONOMY – COMMUNITY – ENVIRONMENT• It is more – much more – than promoting so-called “green industry” or green building practices• How do we use our resources to maximize the benefit to all, both now and in the future?• How do we build long term value and competitive advantage within our community and its businesses?• POLICY COHERENCE – a great place to start Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 42
  • 43. QUESTIONS? MICHAEL STUMPF, CEcD, AICP Principal – Place Dynamics LLC Michael.stumpf@placedynamics.com (262) 510-2131 (720) 413-5801 www.placedynamics.comWisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 43