Milda Dargužaitė, Managing Director, Invest Lithuania @ TOCICO International Public Sector Effectiveness Conference 2013 Vilnius - Identification of main problems and bottle necks. - Strategy Development. - Strategy Implementation: Setting up goals, Process Optimization and Competencies Allocation. - Results Achieved After one Year. More information - http://pse.lt

1. Maximizing ‚Profit‛ in a
Non-Profit Organization
Milda Dargužaitė
24th October, 2013
1

2. Step 1: Identifying Main Problems
and Bottlenecks
2

3. Facts
Projected pipeline of projects = …
233 Potential Projects!!!!
3

4. Facts
Declared Results in 2010 and 2011
2010
2011
Number of projects by fDiMarkets
42
36
Number of IL projects
19
29
2,220
2,400
193
239
Jobs to be created
Investment, m EUR
4

5. Questions
 How are potential projects defined?
 What is the process for ‚closing‛ potential projects?
 What is the process for measuring results?
 What should the results be indexed against?
 Are they sufficient to measure the effectiveness of the organization?
 How should the goals be set and measured in the future?
5

6. Actual Facts
‚Cleaned-up‛ Project Pipeline at the Beginning of 2012
2
Passive
Failed
145
57
Established
contact
22
7
Lithuania is
short-listed
Real
6

7. Measuring Results
Lithuania vs. Other CEE Countries
9000
8000
1,600
1,463
1,400
7000
1,200
6000
1,000
5000
817
744
4000
0,800
0,600
3000
0,400
395
2000
289
200
1000
0,200
160
54
80
Slovenia
Estonia
60
0
Slovakia
Poland
Hungary Romania
Planned jobs
Czech Lithuania Bulgaria
Republic
Latvia
0,000
Planned jobs per million population
Sources: fDiMarkets, Eurostat
7

8. Measuring Results
‚Cleaned-up‛ Results in 2010 and 2011
2010
2011
19 13
29 18
High
38%
44%
Low
62%
56%
2,200 1,026
2,400 1,594
193 47
239 42
Number of projects
IL contribution level:
Jobs to be created
Investment, mn EUR
8

9. Problem!
 Unreliable data
 No clear strategy
 Questionable goals
 Client complains
 Inefficient processes
 No process for budget allocation
 Focus on process, not on results
 No guiding business principles
9

10. Step 2: Strategy Development
10

11. What is our
role?
What differentiates
us?
What do we
do?
 Attract foreign direct investments
 Support investors already in LT
 Increase Lithuania’s economic
visibility among global business
community
 Greenfield, export-oriented projects
 Business friendly government
institution
 High quality and targeted country
marketing
 Generate new projects: lead generation
 Marketing/ PR campaigns
 Support all potential investors until
decision to invest
 Use financial support prudently
 Provide needed support to ‚smoothen‛
implementation process
 Improve investment environment
11

12. New Organizational Structure
Investment
Development
Project
Implementation/
Investment
Environment Team
Marketing &
Communication
12

13. Step 3: Strategy Implementation
13

14. Internal Restructuring
Cleary define department roles and responsibilities
Competent people matched to relevant responsibilities
Lean internal processes
Implement business - friendly culture
Smart selection of business partners and suppliers
14

15. Generating New Leads
4-Step Approach
4.
3.
2.
1.
Target
countries
Target
industry
segments
Target
companies
Proper
marketing,
communication
and sales
strategy
15

16. Target Countries
1st priority
2nd priority
Nordic
France
UK
Italy
Germany
Israel
USA
Russia
Country selection criteria
 Continuous FDI flows to CEE region
 Lithuania can offer clear benefits to investors:
-
Talent pool
Geographical location
Cost saving business environment
Existing infrastructure
High workforce efficiency
Ukraine
China
16

17. Target Countries
FDI Projects in Lithuania1, 2008 - 2012
20
17
16
No. of projects
15
14
12
12
9
6
6
6
4
3
3
3
3
3
3
3
2
17

18. Target Segments
Priority Segments
Segment selection criteria

Investment flows to the CEE

Existing competences in Lithuania

Similar projects in our portfolio
Manufacturing

Higher value-added projects
SSC
R&D
International
names
18

19. Lead Generation: Integrated Approach
1. Online Awareness Building
IL.com optimization
Landing page (SE)
Google Adwords Campaign
Wikipedia page
LinkedIn Campaign
2. Public Relations Campaign
Factsheet
Publication 1
Press Kit
Publication 2
Publication 3
Journalist visit
3. Lead Generation
Event for Global
Presentation
Consultants in LT
ppt.
Expatriate search (LinkedIn)
Company contacts
(Bisfront)
Nordic SSC
4. Developing Relationships
Roundtable
discussion (LT)
Roundtable
discussion (SE)
Roundtable
discussion (SE)
Reception at
Embassy
Business Club
Company visits (SE)
Company visits (SE)
5. Contacting SE Companies in LT
13.06
13.07
13.08
13.09
13.10
13.11
19

20. Attending Events: Selection Process
Organizers
 SSC
 Manufacturing
 ICT
 R&D
 General (Big names)
Market
 T.1. USA, UK, Scandinavia,
 T.1.
Germany, Continent
General - organised for several
continent markets
 T.1. Gates for other markets
 T.2
Poland, Russia, Ukraine
Israel, France, Italy, China,
CIS: Russia, Ukraine
Wish-list of attending companies
 Over 30%
 Under 30%
Attendees
FILTER 2: SOURCES & OTHER
FILTER 1: IL ACTIVITIES
Sector
1. Consultants
1. Trusted events organizers
2. All others
Recommendation from sources
1. Commercial
consultants, commercial attaches,
IAC members, trusted clients
2. Political
Embassies, political associations,
other IPA'S
Feedback
1. New leads
2. Follow up with existing leads
2. Raising awareness
 C-level
 Middle managers
20

21. Communication Abroad
21

22. PR Project - Germany
PART I. Creating general awareness of the
investment destination:
PART II. B2B approach to the potential investment
Journalist
trip
Business
seminars
Press
releases
Publications, b
y-lined articles
& interviews
Generate leads
to work on
potential
projects
Network
of
business
contacts
22

23. Relationship Management
 Highest level of service
 High quality analytical and unbiased information
 Prompt communication
 Proactive but not zealous approach
 Involvement of business partners
 Full control of the process
 Business friendly interface between investor and government
23

24. Improving Investment Environment
Labour market
Spatial
planning planning
Spatial
Investor-friendly
business
environment
Infrastructure –
related initiatives
Investment
environment –
Investment
related initiatives environment –
related initiatives
24

25. Problem Solving Process
Identification
Solution
implemented
Evaluation
Stakeholder
mapping
Implementation
Policy
advocacy
Partnership
building
Communication
25

26. Guiding ‚Business‛ Principles
Working towards Lithuania’s progress
Boosting knowledge economy
Highest performance standards
Professionalism
Maximizing „profit‚: result orientation
Cost effectiveness: accountable to taxpayers
Time effectiveness: accountable to taxpayers
Transparency
Quality
Team satisfaction and motivation
26

27. Communication Strategy
27

28. Step 4: Measuring Results
28

29. FDI Projects and Jobs Created
2010
2011
2012
2013 (January
- October)
13
18
19
22
1,026
1,594
1,132
1,547
6
11
1
0
High IL contribution level
38%
44%
68%
86%
High economic value projects
62%
61%
89%
77%
-
11%
21%
45%
Number of Projects
Jobs to be created
Failed projects
Shared value investment
29

30. Indexed Results
FDI in Lithuania and other CEE Countries in Jan-Aug’13
7000
700
6000
600
582
558
5000
500
4000
400
380
3000
300
284
158
2000
162
1000
200
177
93
100
92
0
0
Poland
Hungary
Slovakia
Romania
Plenned jobs
Lithuania
Czech
Republic
Bulgaria
Estonia
Latvia
0
Slovenia
Planned jobs per million population
30

31. Shorter Processing Period for
Financial Support Applications
1) Simplified procedures for Investors:
 Shortened and simplified application form
Improved
application process
 Providing methodological support to fill out applications
for financial
 Clear quantitative and qualitative criteria to determine the most
incentives
effective support amount
2) Shorter document review period
37 days
69 days
Average time before signing the Letter of Intent dropped
31

32. Expenditure on events
Events
Attendended 3x more Events
for 4x lower costs!
Expenses
4x lower !
15
15
2010
2011
27
2012
47
2013
32

33. Events in 2013
Country
Events
Participation form
Contacts
Leads
Speaker Stand Meetings
Germany
3
3
-
-
44
4
Norway
3
-
-
-
30
2
Sweden
3
3
2
1
60
1
UK
6
2
2
-
90
2
USA
5
2
-
2
40
4
Lithuania
13
9
1
-
-
-
Europe (Other)
14
7
3
2
99
10
Total
47
26
7
5
363
24
33

34. Germany PR Project - Results
March - July ‘12 vs. March - July ’13 :
 Tone of voice on the Lithuanian topics changed
from negative-neutral to neutral –positive
Negative
Positive
 Articles on LT economy rose from to 700 to 2000
 13 articles in main German media outlets (+ reprints)
 Additionally stimulated interest in Lithuania and appeared in:
videos
34

35. Social Media
Social
network
Followers
(01/01/2013)
Followers
(09/30/2013)
Facebook
800
2,033
Google+
N/A
43
Twitter
100
511
LinkedIn
200
1,041
•
•
•
More noticeable in the newsfeed;
More likely to be shared or commented;
Help create a certain ‛feel’ of our brand.
35

36. Website
900
800
700
Denmark
600
Germany
500
UK
400
USA
300
Finland
200
Norway
100
Sweden
0
May
June
July
August
September
36

37. Website
7000
Unique visitors per month, 2013
6000
Estimated unique visitors to IPA‘s
web per month (on average)
Turkey
9,067
Ireland
5000
7,732
Lithuania
6,073
Czech Republic
5,927
Poland
4000
4,883
Bulgaria
3,259
Latvia
3000
3,115
Greece
2,479
Estonia
1,521
Macedonia
1,369
Hungary
2000
1,257
Ukraine
960
Georgia
796
Slovenia
1000
676
Belarus
Moldova
0
Jan
Feb Mar Apr May Jun
Jul
428
105
Aug Sept
37

38. Cost Effectiveness
2011
2012
Change
8.92
8.7
- 3%
Company visits in Lithuania
60
88
+47%
Number of consultations
178
336
+89%
Analytical reports
31
48
+55%
Total expenses (m Litas)
38

39. Investors‘ Feedback
39

40. External Recognition
40

41. Conclusion
Well-defined
target results
Robust
process of
measuring
and relevant
evaluation of
results
What drives
‚profit‛ in a
non-profit
organization?
Motivated
people in
right
positions
Efficient
internal
processes
Efficient
time
allocation
Efficient cost
allocation
41