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2011 8.30 JobsOhio Presentation
The document outlines a meeting led by Tom Waltermire, CEO of Team Northeast Ohio, addressing the need for job creation and economic development reforms in Ohio. Key discussions included the establishment of JobOhio, a new organization aimed at improving customer service, streamlining processes, and fostering private sector involvement to enhance economic growth. The meeting concluded with plans for ongoing community engagement and the operational launch of JobOhio by October 1, 2011.
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2011 8.30 JobsOhio Presentation
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- 2. WelcomeTom WaltermireCEOTeam NortheastOhio (Team NEO)
- 3. AgendaWelcome- Tom Waltermire,CEO, Team NEO
- 4. The Vision- MarkD. Kvamme, Interim Chief Investment Officer and President, JobsOhio
- 5. Our Rationale- KristiTanner, JobsOhio
- 6. Our Findings andFuture of Ohio Department of Development- Christiane Schmenk, Director, Ohio Department of Development
- 7. JobsOhio Structure- MarkD. Kvamme
- 8. Team NEO StrategicPlan and Role as a Network Partner- Tom Waltermire, CEO and Christine Nelson, Vice President
- 9. Question and AnswerSession The VisionMark D. KvammeInterim Chief Investment Officer and PresidentJobsOhio
- 10. Why Change? Customerservice is severely lacking
- 11. Slow andcumbersome approval process
- 12. Proactive salesefforts are seemingly non-existent
- 13. Participation fromC-level execs is limited
- 14. Coordination withregions needs improving
- 15. Inability tomaintain confidential information We Must Reform Our ApproachGrow What We Have – Build a coordinated retention and expansion program across the state Going on the Offense – Create a proactive sales team that aggressively pursues new opportunities Fast and Smart – Lead the market Peer to Peer – Leverage private involvement
- 16. The Way toReform Create JobsOhio Creating a winning strategy, being proactive to land more investment and jobs in Ohio Provide Sustainable FundingReliable, ongoing revenue stream for economic development, along with private sector support Equip it with the best Talent, Tools, & ProcessesTop talent and an economic development toolbox that’s more competitive and wins more deals
- 17. JobsOhio MetricsNet newjob creation and increased payroll New capital investment to OhioReturn on investment
- 18. JobsOhio Board MembersGaryR. HemingerPresident & CEO, Marathon Petroleum Corporation Mark D. KvammeSpecial Limited Partner, Sequoia Capital Bob McDonaldChairman of the Board, President & CEO, Procter & Gamble Pamela SpringerPresident & CEO,Manta MediaJames C. BolandRetired Vice Chairman, Ernst & YoungFormer President, CEO & Vice Chairman, Cavaliers Operating Company Steven A. DavisChairman of the Board & CEO, Bob Evans Farms Inc. E. Gordon GeePresident, The Ohio State University C. Martin Harris, M.D.Chief Information Officer, Cleveland ClinicChairman, Information Technology Division
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- 20. Rationalization CriteriaFour Questionsto Guide DecisionsWho is the Customer?What is the Source of Funding?Federally funded programs and services geared toward communities and individuals will remain with the state. Many of these programs have a more indirect impact on job creationState funded programs and services that serve the business community and have a direct, high impact on job creation will move to JobsOhioWhat is the Impact of Job Creation?What do Program Customers and Stakeholders Prefer?
- 21. Our Findings andOur FutureChristiane SchmenkDirectorOhio Department of Development
- 22. Rationalization CriteriaFour Questionsto Guide DecisionsCommunity Development
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- 25. Governor’s Office ofAppalachia
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- 29. Policy, Research &Strategic Planning
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- 35. Strategic Business InvestmentBusiness LoansInfrastructure Grants“Close the Deal” FundsInnovation & Investment(Third Frontier, Edison Institutes, etc.)Small & Minority Business and Export Assistance OfficeTax Credits, Servicing and Workforce Development OfficeUrban and Site Development OfficeHousing and Partnerships OfficeEnergy OfficeCommunity Services OfficeGovernor’s Office of AppalachiaJobsOhio Regional NetworkContract for Economic DevelopmentOutsource Loan Servicing (possible 2012)Tourism Ohio (2012)Ohio Business Development Coalition
- 36. Guiding PrinciplesFocus oncustomersContinuously find efficienciesProvide a “pace of business” link to JobsOhioProvide assurance of strong oversight of JobsOhioGreater leverage of limited resourcesMetrics-driven and outcome focused
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Editor's Notes
- #5 What is JobsOhio and what are we going to do differently? The why, what and how…
- #6 WHY change to a private model? Why not just make incremental improvements within the government structure? Because incremental improvements won’t get us to where we need to be… it won’t help us make up for the losses we’ve experienced as a state over the last few years. 47th in economic growth2nd highest in job lossesWe’ve lost $14B in payroll We need to fundamentally change the way we approach economic development in order to leapfrog our competitors and knock the rust off the belt In Jan/Feb we asked national site selection consultants how Ohio ranked in terms of the quality of our overall sales team… taking out incentives, just the quality of the people they dealt with across the state (not just ODOD). They consistently ranked Ohio 4th on a scale of 1-10, with 10 being the best. (told 2-3 different things, quality)What else did we hear? (list on slide)Customer service – need to build the right team, unfortunately a government structure doesn’t allow you to attract and keep the best talentSlow process - need to simplify and streamline, It can take 2-3 months to get through the approval process and another 3 or more to close a loanProactive sales are nearly non-existent. Current structure is 98% reactive. We must go on the offense, proactively seek out investment/job creating opps Participation from C-level execs – lot of great fortune 1000 and smaller entrepreneurial execs that can help sell our state if we get them involvedCoordination w/regions – strong regional partnerships will help to build vibrant local economies – we want to help reinforce those regions and tap into their expertise at the local levelMaintain confidential information – critical (example)Speed of the market vs. speed of statute
- #7 Here’s WHAT we have to do….Grow what we have – 80% or more of our new capital investment and job creation comes from our existing business base. Yet there’s no current state-wide strategy for retention and expansion. JobsOhio will change this, and we’ll help put you – Dayton Development Coalition in partnership with the local economic development organizations) in the drivers seat. (giving you the tools you need through the JobsOhio Network)Going on the offense – JobsOhio will build a marketing and sales strategy to aggressively pursue new investment opportunities --- change perceptions, build recognition for the positive business climate changes, with a targeted, focused sales team to bring in dealsFast & smart – speed of the market, using smart tools like ROI calculator and others to help us make better decisions Peer to peer – private organization and a private board will not only help bring in private investment, but allow us to leverage their industry knowledge and expertise – evangelistic
- #8 HOW will we get there?Create JobsOhio – HB1 passed in Feb created frameworkFiled articles & first board mtg in JulyEstablishing the organization and transition over the next 4 monthsFully operational first of year – along w/our regional JobsOhio Network, DDCSustainable Funding – Transfer of state’s wholesale liquor enterprise system will provide ongoing dedicated source of funding for economic development moving forward 1/3 to economic development programs, the rest used to grow governmentWe already use liquor profits to fund many of our ED activities – dedicating the revenue source provides stable funding so we’re investing in our future firstDedicating these profits exclusively for job creation will provide unparalleled resources for job creation without raising taxes and without diverting existing funds from other state programs. Equip it w/the best talent, tools & processes – We will recruit the best talent Build the best strategy and toolsSeek out our best opportunities for economic growth
- #9 HOW will we measure our success? Net new job creation and increased payroll – among our portfolio of targeted industries in Ohio New capital investment to Ohio – Mark, we have some challenges in defining “net new” capital investment, we’ve been working w/E&Y’s public tax division to get their thoughts but in the meantime we suggest not using it.ROI – on a deal by deal basis AND in the longer term, measuring our overall track record on a cumulative basis… making sure that the companies that received assistance actually fulfilled their commitments and (maybe) went beyond. -- Also on the ROI – we plan to extend beyond just the state ROI look, which is what we currently use for state incentives. We plan to modify the tool and share it with our regional and local partners so YOU can use it to see on a deal by deal basis what return your getting for your investment in local incentives.
- #10 WHO will lead JobsOhio?A couple of slides ago we talked about equipping JobsOhio with the best talent… we’ve started at the top with a fantastic board – engaged, energized and ready to lead (May want to mention there will be a ninth member to be named in the next few weeks).
- #12 HB1 charged Dept w/task of reviewing all programs & functions, determining which ones should move to JobsOhio, which should remain with the state and which ones should be eliminated.In thinking about what criteria to use to rationalize the dept, we came up with four questions to guide our decisions. First… who is customer… (bown fields, CRA/EZ, job ready sites – vs. – direct incentives, business development services Second…source of funding… (CDBG, HEAP – vs – GRF or FEF)Third… impact on job creation….(both import – strong communities supports business retention/expansion and attraction)Last… what do our stakeholders think (48 stakeholder groups)Summary statements….This criteria was shared w/TechSolve, one of OH’s Edison Centers and experts in process management and we asked them to help us evaluate the department and make recommendations on what programs and functions should move to JobsOhio or what should stay w/the state. Our new director of dev. will review w/you the results…. Intro CS
- #13 Thank you KristiThe establishment of JobsOhio allowed the Ohio Department of Development to reorganize and determine how we can better serve our customersWorking with TechSolve, one of our Edison Centers, we reviewed our divisions and their functions, sought stakeholder evaluations of the divisions and determined six guiding principles for our department
- #15 The chart represents the division of functions between JobsOhio and ODSA. Many of our functions have been combined and we see the final organization of ODSA being divided into three divisions: the Business Services Division, the Community Services Division, and the Operations Division. The functions within these divisions are aligned based on the primary customers they serve. Those with a strong interface with businesses or employees of business are in the Business Services Division. Those with a strong interface with communities, local governments, and community action or support agencies are in theCommunity Services Division. Finally, those functions with a customer internal to the department are in the Operations Division. We believe this reorganization will make us more efficient and provide communities and businesses with better customer service
- #16 Focus on its customers. There must be a focus on the end customer; the business, the community recipient of grants, the individual receiving energy subsidy and the peer agencies within the state.Continuously find efficiencies. Left unattended, the tendency is for bureaucracies to expand in size and evolve policy and procedure in an overly burdensome way. There must be a focus on continuously seeking efficiencies while supporting customers effectively.Provide a “pace of business” link to JobsOhio. The process for growing jobs must move at the pace of business. For those functions in the process that will remain in the state, the pace must be that of business, not of bureaucracy, in order to be a valued partner by JobsOhio.Provide assurance of strong state oversight of JobsOhio. While being a valued partner to JobsOhio, the agency must also serve to provide oversight of JobsOhio, ensuring the interests of the Ohio taxpayer are well served.Create greater leverage of limited resources. The Agency must find the highest possible leverage of resources managed by the Department and by doing so, extend the benefits of the Departments programs to a larger population.Be metrics-driven and outcome focused. The Agency must hold itself and its partners accountable for outcomes to its customers through continuous monitoring of metrics.
- #17 What is the JobsOhio Network?The JobsOhio Network is a regional economic development partnership funded by the Ohio Third Frontier, in collaboration with the newly founded nonprofit organization JobsOhio, to support the shared vision of growing the state’s key targeted industries, aiding in job creation and economic prosperity for Ohio. The Network will support and grow the state’s economy, with a heavy focus on technology and innovation.PartnersThe goal of JobsOhio is to partner with regional economic development organizations to assist in the attraction, expansion, and retention of businesses for job- and wealth-creation in the state, helping to promote each region’s assets. In order to accomplish the goal, the Ohio Third Frontier Commission has issued an RFP for the JobsOhio Network, targeting the following six economic development agencies to lead this regional effort: Cincinnati USA Partnership Columbus 2020! Appalachian Business Council Dayton Development Coalition Team NEO Toledo Regional Growth PartnershipThe lead regional organizations were selected due to their strong background in economic development activities in their respective region. Each organization is expected to identify collaborating organizations to be part of the Network. Funding and EvaluationThe Ohio Third Frontier Commission will provide $24 million over two years to the six regional partners for staffing and other operating expenses. The Ohio Third Frontier considers this effort an important investment in supporting the state’s technological ecosystem and achieving shared goals with JobsOhio. Regional proposals are being independently reviewed against a set of competitive standards set forth by Ohio Third Frontier. The standards ensure that the proposed activities will result in six highly effective regional economic development strategies that support JobsOhio. OversightThe Ohio Third Frontier Commission is establishing JobsOhio as the functional manager of the JobsOhio Network. The JobsOhio Network is a partnership between the Ohio Third Frontier and JobsOhio to oversee the regional partners, ensuring that the shared goals of the Network are met.
- #19 These are the industries where Ohio has clear strengths and where JobsOhio will focus… along with the business functions where we have traditional strength and concentration – manufacturing with our heritage (example of Wright Bros. in Dayton, below), logistics and distribution given our location and proximity to market, along with 61 Fortune 1000 companies HQ’d in Ohio and many back office operations.Aerospace & Aviation – Ohio has a long tradition in aerospace, started here in Dayton with Wright Bros – (read http://www.ohiohistorycentral.org/entry.php?rec=3480 - two entrepreneurs that figured out how to manufacture things designed and built the machinery they needed – printing press, Wright Flyer bicycles, and finally the engine they needed to propel their biplane. Automotive – assembly and suppliers Banking and Insurance –BioHealth – Builds from Ohio’s strength in top hospitals across the state. Over 1300 bioscience firms in Ohio, includes medical devices and equipment, testing and laboratory facilities, pharmaceuticals & therapeutics, Ag biotech andnutraceuticalsare all part of this industry.Consumer Goods – Companies like P&G, Limited, etc… this is just as much about attracting corporate HQ’s than it is production – supporting businesses/services, human capitalEnergy – Includes alternative energy – photovoltaics, wind, batteries/fuel cells & batteries (fuel cells/batteries that are near market is where we’ll focus), and clean coal technologies. We’ll also have a heavy focus on natural gas with shale gas development in eastern Ohio – including their byproducts (ethylene, methane, butane and isobutene) and the down stream industries that those byproducts will supply, polymers including paints, adhesives, coatings, fertilizers, etc. (Could give the impact by mentioning how much Chesapeake has invested in mining rights in OH)Food Processing – starting with our strength in agriculture – exploring and development w/AgBio and bio materials, to the traditional food processing and manufacturing. Information Services (IT)- all about location….and Ohio has it. With it’s central located within.. Polymers – Ohio is the rubber capital of the world – and we’ve helped transform this industry from tires to advanced materials like flexible LCD’s that can be used in helmets and windshields
- #20 WHAT IS THE ORGANIZATIONAL STRUCTURE OF JOBSOHIOJobsOhio will be a matrix organization…it will combine industry strategy with project management in conjunction w/a statewide network of partnersGeneral Managers – JobsOhio will be vertically integrated around industry clusters Six general managers will be charged w/developing industry strategy focused on two areas: building a retention & expansion portfolio of companies that we must keep and grow in Ohio, and they’ll work with our regional network to make sure we meet with those companies every year targeted attraction strategy –the GM’s will build and implement a proactive sales strategy – targeting companies outside of Ohio, around the world, to consider OH for their next investment Project Managers - Project managers – will be experienced economic development sales professionals that know how to manage deals & structure competitive incentive packagesJobsOhio Network Partners – You, our regional partners are on the ground, you know the landscape best and can react quickly - you are the local experts Put all this together….. we form a powerful alliance that can keep, attract and win more than our fair share of deals for Ohio
- #21 This is our sales funnel, what happens after we’ve identified a prospect. (a prospect is someone that has voiced an interest in an Ohio project, a new investment lead – attraction or retention) This is what a deal coming in from the region will look like, showing who’s involved at each stage of the deal process. Our regional partners are going to help identify and vet projects, build the local deal team, and engage the state/JobsOhio Regions will have a dedicated JobsOhio person on board trained When we look to the Dayton Development Coalition, we’re looking to be sure it includes all our local economic development partners… and we’ll be measuring them accordingly to be sure they’re doing this (like maybe a 360 kind of review on an annual basis, along with in process measures like how they’re preforming on deal activity, how well they’re engaging all of you in the region, etc)THIS IS YOUR LAST SLIDE BEFORE INTRODUCING JEFF HOAGLAND
- #23 NorTech is a regional nonprofit technology-based economic development organization serving 21 counties in Northeast Ohio. As a catalyst for growing Northeast Ohio's emerging technology industries, NorTech is leading efforts to develop regional innovation clusters that create jobs, attract capital and have a long term, positive economic impact.clusters are "geographic concentrations of interconnected businesses, suppliers, service providers, and associated institutions in a particular sector."Advanced energyFlexible electronicsThe Commission on Economic Inclusion, a program of the Greater Cleveland Partnership, is a broad-based coalition of more than 100 Northeast Ohio employers who are committed to making the region’s diversity a source of economic strength. Our members, listed below, have a combined workforce of close to 200,000 individuals in Northeast Ohio and more than 575,000 employees throughout the U.S. The Commission serves as a catalyst for advancing economic inclusion in the Northeast Ohio business community. Our key objective is to achieve demonstrated successes that lead to positive, measurable outcomes including: Increases in board, senior management, workforce and supplier diversity among our members that include Northeast Ohio public-sector entities, private-sector companies and nonprofit organizations Increases in the total revenue, value, size, and number of employees for minority-owned businesses
- #24 NorTech is a regional nonprofit technology-based economic development organization serving 21 counties in Northeast Ohio. As a catalyst for growing Northeast Ohio's emerging technology industries, NorTech is leading efforts to develop regional innovation clusters that create jobs, attract capital and have a long term, positive economic impact.clusters are "geographic concentrations of interconnected businesses, suppliers, service providers, and associated institutions in a particular sector."Advanced energyFlexible electronicsThe Commission on Economic Inclusion, a program of the Greater Cleveland Partnership, is a broad-based coalition of more than 100 Northeast Ohio employers who are committed to making the region’s diversity a source of economic strength. Our members, listed below, have a combined workforce of close to 200,000 individuals in Northeast Ohio and more than 575,000 employees throughout the U.S. The Commission serves as a catalyst for advancing economic inclusion in the Northeast Ohio business community. Our key objective is to achieve demonstrated successes that lead to positive, measurable outcomes including: Increases in board, senior management, workforce and supplier diversity among our members that include Northeast Ohio public-sector entities, private-sector companies and nonprofit organizations Increases in the total revenue, value, size, and number of employees for minority-owned businesses