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People, Process and Product
KAED CONFERENCE: REGIONALISM
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Why InSite – The Voices in our Heads!
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• Bausch and Lomb
• BorgWarner
• Caterpillar
• CertainTeed
• Chicago Pneumatic Tool
• Colgate-Palmolive
• DuPont
• Eastman Kodak
• Fluor
• Freightliner
• Fuji
• General Electric
• General Motors
• Gerber Products
• IAMS Foods
• Levi Strauss
• Mercedes-Benz
• Michelin
• Nanolife Technologies
• Navistar
• Philip Morris
• PPG Industries
• Sumitomo Sitix
• Taiwan Semiconductor
• Volkswagen
EXAMPLE SITE SELECTION CLIENTS
Why InSite – The Voices in our Heads!
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• American Electric Power
• APEG
• Atlanta, TX
• Birmingham, AL
• Camden, AR
• Kentucky Power
• Fargo, ND
• Forth Worth, TX
• Grainger County, TN
• Graves County, KY
• Greenville, NC
• Indy Partnership, IN
• Kentucky Power
• Lee County, VA
• Louisiana Department of Commerce
• Lowndes County, MS
• Lyon, NV
• Myrtle Beach Regional Economic
Development Alliance
• North Carolina’s Southeast
• Northern Alabama Industrial
Development Association
• Pekin, IL
• Sacramento, CA
• Shreveport, LA
• Taney County, MO
• Tucson, AZ
EXAMPLE ECONOMIC DEVELOPMENT CLIENTS
Why InSite – The Voices in our Heads!
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• What does Site Selection mean?
− Company chooses one location out of many for
their capital and job investment
• What does Economic Development mean?
− Being the one location chosen for the investment
in capital and jobs (tax base and putting
unemployed individuals to work)
• Do you have the operational and functional
basics to bring jobs and capital investment to
your community?
Key Questions for Today
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Client’s Frame-of-Mind
Become the CEO for GeneralElectricChoosingNext U.S. Site
• A multi-million dollar RISK ADVERSE decision.
• Mission: Find the best site within 5 states.
• Best of the best with no compromise.
• Report to a board of directors.
• Impacts possibly hundreds of
people’s jobs within the company.
• Impacts her / his job.
Need for You to Have an Out-of-Body Experience
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• Words that Get the Client’s Attention:
− Excess sewer capacity.
− Excess water capacity.
− Electric capacity.
Baseline Expectations of the Client
That YOU Speak Their Language
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• Words that Get the Client’s Attention:
− Attainment Zone.
− Clean Phase 1.
− Regional population and
workforce numbers.
The New Normal-Baseline Expectations of the Client
That YOU Speak Their Language
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• Words that Lose the Client’s Attention:
− I don’t know the excess capacities.
Even worse: “what does that mean?”
− City and county population and
workforce numbers.
Baseline Expectations of the Client
That YOU Speak Their Language
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• Words that Lose the Client’s Attention:
− Quality of life.
− Recreation.
− “We assure you, we will get it there”.
The New Normal-Baseline Expectations of the Client
That YOU Speak Their Language
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• Elimination – motivates the entire process
and it is due to efficiency. Typically 200+
submissions.
• Product is this first round of elimination.
• Product is the most powerful
elimination tool.
Baseline Expectations of the Client
That YOU Speak Their Language
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• Customized On-line Site Selection – Phase 1;
Websites are the first window into your world by the
client and 90 percent don’t speak the client’s
language.
- No “real” product data available.
- City and county data creates great risk for
elimination.
- Local names for industrial park, sites, buildings, etc.
cause you to miss out on a great deal of projects on
the front-end.
Baseline Expectations of the Client
That YOU Speak Their Language
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• RFIs have become computation models:
- They are really fill-in-the-blank tests on your
community and product.
- If you can’t fill them out and use Excel, you
eliminate yourself.
• Confidentiality is a deal-killer.
Baseline Expectations of the Client
That YOU Speak Their Language
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• Schedule – if your team can’t mobilize as fast as the
company – you’re out; schedules are much shorter
putting the focus where it should be – RADICAL PACE.
− Project completion timeframes have shortened
from 9 months to 3 months.
• No wining and dining;
No golf – they are out.
Baseline Expectations of the Client
That YOU Speak Their Language
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• A written, formalized program of work / business plan.
• Budget to allow for ample personnel (minimum of 3).
• Business Retention and Expansion Program.
Baseline Expectations of the Client
Program investment is indicative of E.D. Commitment
YOU Have an E.D. Program that can Handle Their Projects
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• Stand-alone E.D. Website.
• Product and Infrastructure Strategies (short- and
long-term; pipeline sites).
• Formalized local incentive policy – even if there are
none to be granted.
Program investment is indicative of E.D. Commitment
Baseline Expectations of the Client
YOU Have an E.D. Program that can Handle Their Projects
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• The bar has completely changed – it’s Way higher!
− No viable product; No Client! (and no, all the
great labor in the world won’t matter).
− Drastically more competitive.
− Can find what they are looking for so there is no
need for compromise.
− Everyone has a fantastic Quality of Life.
Baseline Expectations of the Client
YOU Have Product that can Handle Their Projects
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Must Haves for your sites to be client-ready:
• In an industrial park with covenants.
• At least 30 acres.
• Outside the100-year flood zone.
• Industrial Zoning or Park Covenants.
Baseline Expectations of the Client
YOU Have Product that can Handle Their Projects
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Must Haves for your sites to be client-ready:
• To the industrial park boundaries: Sewer lines and
- Excess sewer capacity of at least 200,000 gpd.
• To the industrial park boundaries: Water lines and
- Excess water capacity of at least 200,000 gpd.
Baseline Expectations of the Client
YOU Have Product that can Handle Their Projects
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Must Haves for your sites to be client-ready:
• To the industrial park boundaries: Electric lines and
- Excess electric capacity of at least 2 MW.
• Natural gas lines to the industrial park boundaries.
• Fiber infrastructure to the industrial park boundaries.
Baseline Expectations of the Client
YOU Have Product that can Handle Their Projects
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Must Haves” for your sites to be client-ready:
• Completed and clear status archeological study.
• Completed wetlands delineation.
• Documented price.
Baseline Expectations of the Client
YOU Have Product that can Handle Their Projects
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Must Haves for your sites to be client-ready:
• Surrounding uses manufacturing / industrial.
• 1 mile from:
− Residential subdivisions.
− Schools.
− Recreation centers / parks.
Baseline Expectations of the Client
YOU Have Product that can Handle Their Projects
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Must Haves for your sites to be client-ready:
• 1 mile from:
− Daycares.
− Retirement / assisted living.
− Correctional facilities.
− Goats and graves.
Baseline Expectations of the Client
YOU Have Product that can Handle Their Projects
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Must Haves for your buildings to be client-ready:
• 1 mile from:
− Daycares.
− Retirement / assisted living.
− Correctional facilities.
− Goats and graves.
Baseline Expectations of the Client
YOU Have Product that can Handle Their Projects
7. 7
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Must Haves” for your buildings to be client-ready:
• Over 85% of all projects begin with an existing building
search
• Clear height of at least 28 ft.
• Column spacing of at least 40 x 40
• Less than 15 years old
Baseline Expectations of the Client
YOU Have Product that can Handle Their Projects
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Must Haves” for your buildings to be client-ready:
• Have a 6” floor – poured for a spec
• Paved office area parking and entranceway (spec)
• Don’t fall for the virtual building – the client doesn’t
• 10 percent office space
Baseline Expectations of the Client
YOU Have Product that can Handle Their Projects
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Must Haves” for your buildings to be client-ready:
• Expansion capabilities to double the size of facility
• Paint the exterior if necessary
• One floor
• Minimal interior walls
Baseline Expectations of the Client
YOU Have Product that can Handle Their Projects
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Must Haves for your buildings to be client-ready:
• At least 5 dock doors and 3 drive-in doors
• Not a former special use
• No pits
Having Product that is Ready Now to Handle Their Project
Baseline Expectations of the Client
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• What is excess sewer capacity? In volume, total
permitted capacity minus current daily usage to the
park boundaries.
• Is not knowing a fatal flaw? Yes!
• What is excess water capacity? In volume, total
permitted capacity minus current daily usage to the
park boundaries.
• Is not knowing a fatal flaw? Yes!
• What is a fatal flaw? Site characteristic(s) that
eliminates a site from project / location consideration.
Ability to Respond To RFIs Completely and Concisely
Baseline Expectations of the Client
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• Will points be deducted if my electric rate is high? No!
• Will points be deducted if my utility rates are left
blank? Yes!
• Should I include a quality of life
piece even though it was
not requested? No!
Baseline Expectations of the Client
Ability to Respond To RFIs Completely and Concisely
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• Must know excess capacities!
• Must be able to complete an exhaustive RFI.
• Dedicated staff focusing on research and support in
order to effectively and efficiently respond to detailed
RFIs.
• Make no excuses. Always error on the side that any
late response, no matter the personal or professional
situation, will be
eliminated.
Baseline Expectations of the Client
Ability to Respond To RFIs Completely and Concisely
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• Rigid and relentless! Unyielding!
• Concise and specific answers.
• Provide only what is asked for in the requested format.
• No flash drives or videos.
Baseline Expectations of the Client
Ability to Respond To RFIs Completely and Concisely
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• No fluff.
• Seeks and destroys – eliminates risk.
• Must give a response in the RFI. Any cell lacking a
response receives a score of 0.
• The response of N/A receives a
score of 0. Give an explanation.
Baseline Expectations of the Client
Ability to Respond To RFIs Completely and Concisely
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• Unknown or don’t know is unacceptable. It
receives a “0”.
• The response of “see attachment, see above or
see page 3” receives a score of “0”. The
community must interpret the data. The consultant
/ company will not take time to “read through”
then process.
• Client wants to know the answer, community has to
be the source.
• Spell check the RFI before submitting
to consultant / client.
Baseline Expectations of the Client
Ability to Respond To RFIs Completely and Concisely
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• Priority participants: Economic Development Director,
existing industry representative, utility providers, state
project manager, regional project manager and local
official responsible for negotiating and approving
incentives.
• Limit the number of officials and only incorporate allies
when strategically necessary.
• Have your local incentive
package ready to offer.
The Ability to Professionally Close the Deal
Baseline Expectations of the Client
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• Don’t discuss your political persuasion.
• Don’t talk about your hobbies or your personal life.
• Don’t profess to know the company -
if it’s confidential.
• Don’t discuss your or anyone else’s
religion.
Baseline Expectations of the Client
The Ability to Professionally Close the Deal
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• Don’t ever say to the client “catch me up on this
project”.
• Don’t ever use your cell phone / smartphone.
• Do practice with each member that participates in
the client visit on what to say and not to say.
• Don’t ever forget to ask for the sale!!
Baseline Expectations of the Client
The Ability to Professionally Close the Deal
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• Don’t say I hate technology.
• Don’t have a wimpy handshake – practice with
someone who has a commanding one.
• Do pre-plan your route.
• Do start the community welcome
with an existing industry person.
Baseline Expectations of the Client
The Ability to Professionally Close the Deal
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• Don’t start the community welcome with a politico or
high ranking E.D. person.
• Do briefly explain your community vision.
• Do know that community upkeep and gateway
signage matters.
• Do appreciate that downtown
image makes a difference.
Baseline Expectations of the Client
The Ability to Professionally Close the Deal
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• Do know the names and employment levels of all
employers you pass-by while driving.
• Don’t encourage loose lips - one drink limit with the
client.
• Don’t fall asleep at any point during the meeting –
get some coffee (or someone
might take your picture).
• Don’t GD the consultant.
Baseline Expectations of the Client
The Ability to Professionally Close the Deal
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• Do visit companies that have visited your location.
• Don’t do red carpet tours; Do visit consultants and
clients on their turf.
• Don’t provide videos or CDs ever – RFI or visit; Do
answer all the questions on the RFI.
• Don’t send fruit, cookies, and most other gifts.
• Do email information on product with real data.
Definite Dos and Don’ts
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• Do include leadership and stakeholders in training
on best-in-class economic development practices.
• Local advertising is a waste of money.
• 90% of the communities do not get
the message right on their collateral
and sales materials.
• Billboard, really? Don’t!
Definite Dos and Don’ts
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• Having the ability to respond in the beginning
controls your fate – not having it gets you eliminated.
• Having viable product controls your fate –
not having it gets you eliminated.
• Understanding that all your work and focus will be on
the “gap” positions you to win.
• Honesty won’t get you
eliminated but dishonesty
will get you black-listed.
Takeaways