The document discusses strategic planning for economic development. It provides an overview of strategic planning, including that strategic planning involves choosing a future vision rather than accepting trends, and establishing goals and initiatives to achieve that vision. Additionally, it discusses organizing approaches to economic development strategies, the strategic planning process, stakeholder input, and developing a vision and situational assessment.

1. Wisconsin Basic Economic
Development Course
Strategic Planning for Economic Development

2. Economic development is not the
act of marketing industrial sites.
It is the art of building places that
attract talented
people, 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
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4. A CHOICE: STRATEGY OR TREND
By knowing where we have been and where
we are today, we can understand where we FUTURE
VISION
are headed, and take actions to reach an
alternative 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 TREND
Will you accept what you get or plan to get what
you 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
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6. INCITING A CHAIN REACTION
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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 ACTIONS
The following activities will set the stage for the
planning 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
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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
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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)
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11. HAVE A COMMUNICATION PLAN
You need to manage how the story is told to the
community
• 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
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12. SITUATION  TARGET  PATH
VISION-BASED OR GOAL-BASED PLANNING
PRIORITIES ASSESS
INPUT
ACHIEVABLE STRATEGIES & IMPLEMENT- REVISED
GOALS
OBJECTIVES ACTION PLANS ATION STRATEGIES
ANALYSIS
RESOURCES MONITOR
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13. SCENARIO PLANNING
An approach used independently or with other planning
techniques
• 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
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14. ISSUE-BASED PLANNING
Short term in nature; tends to be used when
organizations face internal challenges (ex., lack of
credibility, 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
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15. ALIGNMENT PLANNING
Short term in nature; often used to tweak
strategies or resolve internal conflicts or
inefficiencies
• 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
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16. STAKEHOLDERS
INDUSTRY
GROUPS
FUNDERS BUSINESS
PROPERTY ELECTED
OWNERS OFFICIALS
ECONOMIC
DEVELOPMENT
GOVERN-
ED STAFF
MENT
PARTNER ORGANIZ-
GROUPS ATIONS
CITIZENS
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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
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18. DEALING WITH STAKEHOLDERS
SATISFY MANAGE
INFLUENCE
MONITOR INFORM
INTEREST
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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
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20. SITUATIONAL ASSESSMENT
Where 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
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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
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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?
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23. ASSESSMENT TOOLS
Place 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
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24. SETTING GOALS
Goal – the general purpose toward which an
endeavor 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
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25. DETERMINING OBJECTIVES
Objective – An observable outcome contributing to
the 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?
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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
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27. NOMINAL PROCESS EXAMPLE
SOLICIT
IDEAS
GROUP
SIMILAR
IDEAS
VOTE
TO RANK
THEM
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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? YES
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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.
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30. STRATEGIES AND ACTION PLANS
Strategies 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?
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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
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32. BALANCED SCORECARD
A 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
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33. CAUSE AND EFFECT DIAGRAM
Fishbone diagram - 5 “whys”
EFFECT
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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 SEE
WHAT SHOULD BE THE PRIORITIES?
TOTAL _____ _____ TOTAL
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35. IMPLEMENTATION
Every plan should have an implementation plan, action plan,
or work plan that lays out all of the required steps to enact
the 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?
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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
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37. MEASURING PERFORMANCE
Impact Assessment – Sustainably Harvested Wood Products
Type of Capital Indicator Measure
Individual – 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 who
and 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 over
networks 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 being
environmental 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-investing
monetary 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 participated
held 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?
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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
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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
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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
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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
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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
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43. QUESTIONS?
MICHAEL STUMPF, CEcD, AICP
Principal – Place Dynamics LLC
Michael.stumpf@placedynamics.com
(262) 510-2131
(720) 413-5801
www.placedynamics.com
Wisconsin Basic Economic Development Course  Madison, Wisconsin  10-13 September 2012 43