Economic development performance measures can be your super power. Here's my presentation to the Ontario East Municipal Conference on best practices in economic development performance measurement.

1. Best Practice in
Economic Development
Performance Measurement
Ontario East Municipal Conference September 13, 2017

2. Economic Developers
are like superheroes

3. Sometimes superheroes can feel like
they are under attack
Source: http://misfitdaydream.blogspot.ca/

4. Performance Measures
4

5. Why Measure Performance?
“Managing knowledge means managing oneself”
5
Photo: http://www.businessnewsdaily.com/

6. Today’s mission
Definition
The case for performance
measures
Choosing the appropriate
measures
Reporting methods
Best practices
6
Photo: http://www.metv.com/

7. Performance Measurement Defined
The process of collecting,
analyzing and reporting
information regarding the
performance of an individual, or
organization
7
Source: startupstockphotos.com

8. 8
The Case for Performance Measures

9. Economic
Development Goal
’To put a region on a path to higher growth by
improving the productivity of firms and people in
ways that leads to better incomes and living
standards for all’ - Brookings Institution
Performance measures should assess movement
towards the region’s goals
9
Source: startupstockphotos.com

10. Why People Don’t Measure
Takes time
Difficult to measure
Difficult to attribute outcomes
Reluctance to share results –
particularly in times of
economic transition
10

11. Challenges 11
Source: adurastrategy.com

12. Economic development activity
includes many intangibles
Agreeing on appropriate measures
Misunderstanding of the economic development
function
Failing to measure
Failing to report
ED Performance
Measurement Challenges
12
Photo: goodnet.org

13. The Strategic Planning Process
13
Situation
Analysis
Stakeholder
Consultation
Strategy
Development
Action &
Implementation

14. The Strategic Planning Process 14
Situation
Analysis
Stakeholder
Consultation
Strategy
Development
Action &
Implementation
Performance
Measurement

15. Part of the strategic planning process
Improve capability to achieve
organization vision
Monitor strategy execution
Supports evidence based decision
making
Build common understanding of the
processes, terminologies and
expectations of ED strategy
15
Source: forbes.com What gets measured gets done or does it?

16. Assess the effectiveness of your
organization
vs previous years/ other regions
Ensure accountability and transparency
for community, Council
Buy in from stakeholders
community, government, funding programs, sponsorship
Support for budget, human resource
requests
16
Source: forbes.com What gets measured gets done or does it?
Part of the strategic planning process

17. OMAFRA’s 4 Steps to effective
performance measurement
Assess Establish/ revisit
economic development strategy
Build consensus
Create Link inputs, actions, outputs & outcomes
Develop performance measurement framework
Source: Performance Measurement for Economic Development, OMAFRA
17
C
B
A
D

18. 18
Choosing the appropriate measures

19. 4 areas to measure
Internal
Ex. Staff size, budget
Relationship Management
Ex. Website visits, client files
ED outcomes
Ex. Jobs created, investment announced
Community
Ex. Population, education level,
household income
19
Noun Project: shashank Shin, Alex Kwa, Arthur Shlain, artworkbean

20. Types of Measures
Quantitative
Percent change, dollar amount or other value
% satisfaction; % completed or attended;
number of new developments, business visits
Qualitative
Subjective evidence, anecdotes from local
businesses, testimonies, comments from
surveys interviews focus groups, case studies
Primary
collected by economic development office
(BR&E & others)
Secondary
Provided by a third party (Stats Can &
others)
20
Source: British Columbia Performance Measurement Tooklkit

21. Measuring what matters
21
Inputs Actions Outputs Outcomes
Resources
What we invest
What we do What we
provide
What
objectives we
achieve
Human,
financial,
organizational &
community
assets
Specific actions
to achieve the
economic
development
goals
Results of the
actions, ie.
workshop
participants,
clients
Impacts on
economy & local
population ie.
expanded tax
base,
employment

22. Measuring what matters
22
Inputs Actions Outputs Outcomes
Money Tourism
Promotion
Inquiries Job Growth
Staff/ volunteers Business
Recruitment
Project Files
Opened
Capital
Investment
Facilities Retention &
Expansion
Corporate Calls Assessment
Equipment/
supplies
Small Business
Advisory
Clients Served Business Start-
ups

23. British Columbia Performance
Measures Toolkit
General business
Business attraction,
creation, retention
Demographics
Development/ investment
Engagement/ relationships
Housing/ real estate
Labour market
Outputs
Quality of Life
Plan Implementation
Taxes
Technology & Innovation
Tourism
Transportation
23
http://www2.gov.bc.ca/
210 Measures

24. Commonly used measures 24
Source: EDAC Development of Performance Measurement Systems for Local and Regional Economic Development Organizations, 2011
48
49
51
53
59
60
61
61
67
73
Funding granted
Unemployment rate
Building permits institutional
Building permits commerical
New business investment
Inquiries received
Jobs created FT
Workforce
Population
New businesses opened
%

25. Unintended Consequences
Measure drives the
activity
Exaggeration of EDO
responsibility
Favours short-term
programs
27
Photo: i.ytimg.com

26. 5 traps of performance
measurement - HBR
Measuring against yourself
Looking backward
Putting your faith in numbers
Gaming the metrics
Sticking to the numbers too
long
28
https://hbr.org/2009/10/the-five-traps-of-performance-measurement
Photo: http://eyerayofthebeholder.blogspot.ca/

27. Assessing your performance
measures
Direct evidence of your goal
Deliberately defined: how
calculated, how interpreted
Consistently implemented
Allow for ‘natural variability’
Correlate with other evidence
29
https://www.staceybarr.com/measure-up/how-to-know-if-you-have-the-right-kpi/
Sorce: www.bigglee.blogspot.ca

28. Selecting Your
Performance Measures
30
Source: Measuring Up! Performance Measurement for Economic Development, A Guidebook for Economic Development Practitioners,
Ontario Ministry of Agriculture, Food and Rural Affairs, p 17
(potential)
Review
(Not Recommended)
Drop
(potential)
Review
(Recommended)
Keep
critical
important
Nice to have
Not very useful
Not at all useful
Importance
impossible
Difficult
Somework
butfeasible
Simple
Alreadydoing
Work to measure, monitor & report

29. 31
Reporting Methods

30. Reporting Methods
Narrative
hard & soft evidence
Case Studies
Scorecards
Efficiency
investment per output/
outcome
Photo: http://allareoneplus.blogspot.ca/2012/03/quote-58-pride-megaphone.html
32

31. Examples: Invest North Bay
33
www.investinnorthbay.ca

32. Examples: Halifax
34
http://www.halifaxpartnership.com/

33. Examples: Minto, ON
35

34. Examples: Calgary, AB
36
http://www.calgaryeconomicdevelopment.com/

35. Examples: Windsor, ON
37
www.choosewindsoressex.com/

36. Examples: Halton Region, ON
38
www.halton.ca/

37. Examples: Adelaide, South Australia
www.economic.priorities.sa.gov.au/priorities/adelaide_-_heart_of_the_vibrant_state/progress_against_objectives
39

38. Examples: Southwest Ontario
Tourism Corporation RTO #1
40
swotc.ca

39. 41
Best Practices

40. 10 Best Practice Tips
1. Align performance measures
with strategic plan
2. Define performance measure
3. Get agreement on measures
4. Establish data source and
frequency of measurement
5. Measure/ report over time
42

41. 10 Best Practice Tips
6. Start small
7. Assign performance
measurement task
8. Determine communication
method
9. Tell your story
10.Revisit measures to confirm
their usefulness
43

42. Resources
 Performance Measurement Toolkit for
Local Economic Development
Province of British Columbia
www2.gov.bc.ca
 Measuring Up!
Ontario Ministry of Agriculture Food
and Rural Affairs
www.omafra.gov.on.ca
 Making it Count: Metrics for High Performing EDOs
International Economic Developers Council
www.iedconline.org
 Development of Performance Measurement Systems for
Local and Regional Economic Development Organizations
Economic Developers Association of Canada
www.edac.ca
44
Photo: http://www.businessnewsdaily.com/

43. Thank you
Aileen Murray Ec.D. (F)
Mellor Murray Consulting
mellormurray@gmail.com
www.mellormurray.ca
519-784-7944
mellormurray