This document discusses managing development organizations for excellence. It covers identifying an organization's strengths, weaknesses, opportunities and threats through a SWOT analysis. Key aspects of organizational excellence include having a clear mission and vision that is shared by leadership and staff. The document emphasizes the importance of the board of directors in setting policies and priorities to guide the organization. Overall, the document provides guidance on assessing an organization and establishing goals and strategies to achieve excellence.

1. 1
MANAGING THE
DEVELOPMENT ORGANIZATION
Dr. David R. Kolzow
TN BEDC 2013

2. Team Kolzow 2
MANAGING FOR EXCELLENCE IN
AN OUTCOME-BASED
ENVIRONMENT
• Who Are We?
• Who Do We Want to Be?
• How Do We Get There?
• How Do We Know If We Got There?

3. Team Kolzow 3
WHO ARE WE?

4. Team Kolzow 4
TYPES OF DEVELOPMENT
ORGANIZATIONS
• Public/private non-profits
• Chambers of Commerce
• Local governments
• State governments
• Port authorities
• Local redevelopment corporations
• Utility companies
• Empowerment & enterprise zones
• Certified development corporations
• Universities & community colleges

5. Team Kolzow 5
THE EXCELLENT
ORGANIZATION
• Viewed as:
• One of the best
• First-Class
• Highly professional
• Working hard at doing most
things well
• Always striving to be better
Quality is not an act; it is
a habit. Aristotle

6. Team Kolzow 6
EXCELLENCE
“Strive for perfection; be content with
excellence.”
Mediocrity is what happens when you quit
striving for “excellence”

7. MEDIOCRITY
Team Kolzow 7

8. Team Kolzow 8
EXCELLENCE
Attitude is ultimately more important than
knowledge and ability in the quest for
excellence – true or false?

9. Team Kolzow 9
MOVING TOWARDS
EXCELLENCE
Ability is what you’re capable of doing.
Motivation determines what you do.
Attitude determines how well you do it.
Lou Holtz

10. Team Kolzow 10
EXCELLENCE
List those “things“ your organization
does that is superior to other
organizations you are aware of:
•
•
•
•

11. Team Kolzow 11
MANAGING FOR RESULTS
Being an “excellent” organization is more
than mastering certain management
techniques

12. Team Kolzow 12
MANAGING FOR
EXCELLENCE
• Who in a organization is involved in its
management?
• How big does an organization have to be
to have a concern for management
excellence

13. Team Kolzow 13
“Ninety percent of
what we call
„management‟ consists
of making it difficult for
people to get things
done.” – Peter Drucker

14. Team Kolzow 14
THE NONPROFIT
ORGANIZATION
• The Board governs
• The CEO manages
• The staff performs
• The stakeholders, constituents, and
customers benefit

15. Team Kolzow 15
WHO ARE WE?
SWOT
• Organizational Assessment
• Strengths
• Employees with valued skills
• Organizational competencies & capabilities
• Competitive advantages over other organizations
• Unique resources
• Weaknesses – inadequacies in any of the above
• Opportunities – new paths to pursue with clear benefits
• Threats – External situations that can negatively impact
the organization; they must be actively dealt with to
prevent trouble (e.g., economic recession, loss of
funding)

16. • Define org’s “core operations” and functions
• E.g., working with prospects, marketing, BR&E
• Measure your org’s current capability in
successfully handling your core operations
• Determine what gaps need addressing
16
WHAT IS OUR
COMPETENCY?
Team Kolzow

17. 17
WHAT IS OUR
COMPETENCY?
Operation Core Components
Marketing
program
Board
support
Strategies and
performance
measures
Appropriate
targets
Promotion
material
Website Funding
Core Operations
Scoring
1
unacceptable
2
weak
3
basic/
average
4
sound / good
practice
5
Excellent/
outstanding
Team Kolzow

18. Organizational Capacity Components
Strategic leadership Leadership, strategic planning, innovative thinking
Organizational structure Governance & operational structure
Human resources Planning, staffing, developing, appraising and rewarding,
maintaining effective human relations
Financial management Financial planning, financial accountability, financial statements
and systems
Infrastructure Facilities & technology management
Program & services mgmt. Planning, implementing, and monitoring programs/projects
Process mgmt. Problem-solving, decision-making, communications, monitoring
and evaluation
Inter-org. linkages Planning, implementing, and monitoring networks and
partnerships
18
8 AREAS OF ORGANIZATIONAL CAPACITY
AND THEIR VARIOUS COMPONENTS

19. • Determine org’s “core competencies” that give it a
uniqueness and competitive advantage
• Identify skills and capabilities needed to support core
competencies
• E.g., sales training, website development
• Measure your org’s current capability
• E.g., performance evaluations, input from customers
• Determine what gaps need addressing
19
WHAT ARE OUR UNIQUE OR
―CORE‖ COMPETENCIES?
Team Kolzow

20. • Define org’s “core operations” and functions
• E.g., working with prospects, marketing, BR&E
• Determine org’s “core competencies” that give it a
uniqueness and competitive advantage
• Identify skills and capabilities needed to support
core competencies
• E.g., sales training, website development
• Measure your org’s current capability
• E.g., performance evaluations
• Determine what gaps need addressing
20
WHAT IS OUR
COMPETENCY?

21. Team Kolzow 21
ORGANIZATIONAL
ASSESSMENT
Sources of assessment:
• Staff (least objective)
• Board or other stakeholders
• Clients/constituents/members
• Third-party (most objective)

22. Team Kolzow 22
WHO ARE YOUR
STAKEHOLDERS?
• Stakeholder Identification
• Identify existing and potential stakeholders
• What is their interest or stake in the organization?
• What will it take to get them more effectively involved?
• What do they need from the organization?

23. Team Kolzow 23
WHO ARE WE?
THE MISSION STATEMENT
• Brief description of the
basic purpose of the
organization, including
the nature of the work to
be carried out
• It guides basic decision-
making for the
organization, keeping
decisions and policies
focused on its core
purpose

24. MISSION STATEMENT
24
• Who associated with the organization has
the primary responsibility for determining its
mission?
• How does the mission statement improve
accountability?
Team Kolzow

25. Team Kolzow 25
MISSION STATEMENT
√ Basic needs to be filled?
√ Desired outcomes and achievements?
√ Clients and customers?
√ Core values?
√ Organization’s uniqueness?
√ Reason for existence?
How does your organization’s
mission statement measure up to
these preceding questions?

26. Team Kolzow 26
MISSION STATEMENT EXAMPLE
The mission of the Kansas Rural Development Council
is to provide a framework within which public and
private sector resources can be used to promote rural
economic development. The Council will serve as a
forum for effective collaboration between various
entities to meet the needs and identify issues affecting
rural Kansas. The Council will provide leadership in
making strategic use of available resources to achieve
short- and long-term rural economic development. In
addition, the Council will serve as a focal point for
identifying and addressing interdepartmental barriers
to implementing a long-term economic development
strategy.

27. MISSION STATEMENT
EXAMPLE
To attract business investment by generating new business leads
and building regional capacity through product development
and effective regional engagement.
What does this mean?
We are an investor-based organization that supports the region’s
economic development throughout our member counties. The
efforts of the Partnership will:
Leads
Establish the identity and promote the brand of our region as one
of the most business-friendly, innovative, and attractive
regions in the Midwest;
Etc.
27Team Kolzow

28. Team Kolzow 28
BOARD INVOLVEMENT

29. Team Kolzow 29
BOARD GOVERNING ROLES
The most important governing role of a
Board of Directors is setting policy – true
or false?

30. Team Kolzow 30
KEY POLICY AREAS
• Reporting procedures of management to Board
• Process for monitoring & approving expenditures
• Basic employee policies
• Appropriate volunteer involvement in staff or
organization activities
• Process for evaluating performance of program &
chief executive
• How Board meetings are to be conducted
• Who speaks on behalf of organization
• Avoiding conflicts of interest or asking for special
favors

31. Team Kolzow 31
BOARD GOVERNING ROLES
• Establish policy (rules & procedures)
• Determine the direction of the
organization
• Clarify the mission of the organization
• Evaluate performance
• Hire the chief executive
• Establish the organization’s priorities
• Monitor expenditures
• Raise the funds

32. Team Kolzow 32
FACILITATION ROLES OF
BOARD
• Establishing contacts that benefit the
organization
• Promoting the organization in the community
• Providing key advice
• Serving as a bridge between the organization and
the community

33. Team Kolzow 33
BOARD OPTIONS
What is the likely
response of Board
members when
they aren’t clear on
their role?

34. 34
BOARD ORIENTATION
 Discussion of history of organization
 Meeting staff
 Touring the office
 Reviewing the Board manual

35. Team Kolzow 35
WHO DO WE WANT TO BE?

36. Team Kolzow 36
VISION
“There is no more powerful engine driving an
organization toward excellence and long-range
success than an attractive, worthwhile, and
achievable vision of the future, widely shared.”
(Burt Nanus, Visionary Leadership)

37. Team Kolzow 37
VISION
• An ideal & unique view of what the
organization will be about in the
future
• What will the future
require of our
organization?

38. WHAT IS YOUR ORGANIZATION’S
VISION?
Think about your desires for your organization’s future,
or its vision:
◦ What would you like to see your organization doing
in five years that it isn’t doing now?
◦ What changes would you like to see in how your
organization does business?
◦ What future do you see for the funding of your
organization?
◦ What impact is an economic downturn likely to have
on the future of your organization?
38 Team Kolzow

39. Team Kolzow 39
VISION
What/who should be the primary source of
an organization’s vision?

40. Team Kolzow 40
VISION
• Should be widely shared
• Requires strong commitment from
the leadership

41. Team Kolzow 41
EVOLUTION OF A
“SHARED” VISION
PERSONAL
VISION
PERSONAL
VISION
PERSONAL
VISION
COMMUNICATION
SHARED
VISION

42. EXAMPLES: ED
ORGANIZATION VISIONS
• SEDA will be considered by its peers as the best business
solicitation and facility location organization for cities of
comparable size in the country. It will be the guardian of
Savannah’s diverse economy. SEDA understands that the
economy is dynamic and economic development
organizations must adjust to changes in order to remain
successful. SEDA will always be the first to change.
• Create a diversified, sustainable economy generating
wealth, quality jobs and improving quality of life.
(Owensboro KY)
• Comment: the majority of ED orgs. don’t have a vision
statement
Team Kolzow 42

43. EXAMPLE: ORGANIZATIONAL
VISION
The Partnership is one of the top performing
regional economic development organizations in
the nation.
What does this mean?
NEIRP is recognized as one of the top performing
regional economic development organizations in
the nation. It is known for its innovative practices,
its collaborative approach, its customer service,
and its professional excellence. The Partnership
is successfully leading the Northeast Indiana
region to increased economic prosperity and
business investment.
43Team Kolzow

44. Team Kolzow 44
FROM VISION TO PLAN
Visioning clarifies what the organization
wants to become and where it wants to
go;
Strategic planning clarifies how the
organization is going to get there

45. Team Kolzow 45
HOW DO WE GET THERE?
• Customer service
• Continuous performance
improvement
• Teamwork
• Organizational planning

46. Team Kolzow 46
HOW DO WE GET THERE?
SERVING THE CUSTOMER

47. Team Kolzow 47
“EXCELLENT”
ORGANIZATIONS &
CUSTOMER SERVICE
Why is “customer service” probably the
most critical component of an “excellent”
organization?

48. Team Kolzow 48
MOMENT OF TRUTH
Customer contact with the organization
Impression of service

49. 49
CYCLE OF SERVICE
Awareness of
community
Phone contact
with ED org.
Staff answering
phone
Org.’s
Response to
inquiry
Follow-up
contact
Quality of
materials
Ongoing
relationship

50. Team Kolzow 50
MEASURING CUSTOMER
SATISFACTION
• Who are your key customers?
• How do you know what your customers really are
looking for?
• How do you determine when you’re doing a good
job serving your customers?
• How can levels of satisfaction be improved?
• What will our customers need in the future?

51. Team Kolzow 51
MEASURING CUSTOMER
SATISFACTION
• Methods for determining customer needs:
• One-on-one interviews or surveys of key
customers
• Focus groups
• Asking systematically for input from staff who
have customer contact
• Questionnaires that allow for employee
comments
• Feedback from key stakeholders and Board
members

52. Team Kolzow 52
SETTING CUSTOMER
SERVICE STANDARDS
Why is it important to set service “standards” for
dealing with prospects, clients, and customers?
Customer service standards:
• Completeness – essential vs. unnecessary
• Timeliness & responsiveness
• Competitive with other organizations
• Relationship-building for the long term
• Adding value – providing more than expected

53. 53
HOW DO WE GET THERE?
ORGANIZATIONAL PROGRESS
What key steps can we take to continually
improve the effectiveness of our
organization?
He who stops being better stops being good.
Oliver Cromwell

54. Team Kolzow 54
CONTINUOUS PERFORMANCE
IMPROVEMENT
• Viewing work as a process
• Believing the work process can always be
improved
• Research and training in better
understanding of the process and how to
improve it

55. Team Kolzow 55
QUALITY WORK PROCESSES
• Effective – output of process meets
customer needs & expectations
• Efficient – minimizes use of resources &
eliminates waste
• Adaptable – ease of changing processes
to meet future customer requirements &
reduce processing time and costs

56. 56
PURPOSE OF
PROCESS IMPROVEMENT
Delivering
Customer
Value
Analyzing all “key” org.
systems
& processes

57. Team Kolzow 57

58. Team Kolzow 58
PROJECT MANAGEMENT
• Managing use of staff time and talent on projects
• Allocating organizational resources effectively
• Expending funds according to budget
• Staying within the timing constraints
• Knowing where each project is in terms of
progress and achievement

59. Team Kolzow 59
SAMPLE GANTT CHART
TASK Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Prepare
leader survey
Identify local
leaders
Email leader
survey
Phone follow-
up
Tabulate
results
Publish
results

60. Team Kolzow 60
“It is not the strongest
of the species that
survives, nor the most
intelligent, but the
one most responsive
to change.” —Charles Darwin

61. Team Kolzow 61
CONTINUOUS PERFORMANCE
IMPROVEMENT
• Why is training crucial to continuous
performance improvement?

62. Team Kolzow 62
QUALITY TRAINING
• Awareness
• Focused on
providing
information
• Overview rather
than in-depth
• Trying to stimulate
interest in further
learning

63. Team Kolzow 63
QUALITY TRAINING
• Quality (“soft”) skills
• Communication
• Negotiation
• Conflict resolution
• Problem-solving
• Critical thinking
• Team-building
• Collaboration
• Project management
• Customer service

64. Team Kolzow 64
QUALITY TRAINING
• Job specific
• Computer skills
• Using software
• Data management
• Brochure
development
• Research
techniques

65. Team Kolzow 65
HOW DO WE GET THERE?
BUILDING THE ORGANIZATION’S
TEAM

66. Team Kolzow 66
COOPERATION >
COLLABORATION
Is it important to determine how we get the
Board, staff, and other key stakeholders to
work together productively?

67. Team Kolzow 67
CONFLICT
My needs Your needs

68. Team Kolzow 68
CONFLICT
What are the positive aspects of
disagreements and conflict in an
organization?

69. Team Kolzow 69
IMPORTANCE OF CONFLICT
"Strength lies in differences, not
in similarities"
--Stephen R. Covey

70. Team Kolzow 70
CONFLICT
If you have a disagreement or conflict with
another person in your organization,
whose behavior or attitude do you have
the power to change?

71. Team Kolzow 71
MOVING FROM CONFLICT TO
COLLABORATION
• Connection – getting people and organizations to
communicate
• Cooperation – Various organizations or members
within organizations are able to work well with
each other; getting along
• Coordination – Working toward some common
results and goals; trying to reduce overlap or
voids
• Collaboration – Members of organizations attack
and resolve problems together, creatively
exploring alternatives and possibilities – the mark
of an effective “team”

72. Team Kolzow 72
ECONOMIC DEVELOPMENT
PROFESSIONAL
• Why is “collaboration” critical to
continuous performance improvement?
• As a CEO or Executive Director, what is
the difference between “leading” and
“managing” an organization?
• What is the difference between a
facilitative leader and a “boss?”
• What should the executive director of the
organization be doing to build stronger
and better relationships with his/her
Board?

73. Team Kolzow 73
HOW DO WE GET THERE?
ORGANIZATIONAL PLANNING

74. Team Kolzow 74
FROM PRIORITIES TO GOALS
• Who should set the priorities for the
organization?
• How is this best accomplished?
• If the priorities of the Board and stakeholders are
not in agreement with those of the organization’s
executive director and staff, what should be done
to remedy the situation?
• Goals should reflect the organization’s priorities

75. Team Kolzow 75
ORGANIZATIONAL
STRATEGIC PLANNING
• Why is a written strategic plan
important to the organization?

76. Team Kolzow 76
MOVING FROM IDEAS TO
ACTION PLAN
“Strategies that don’t make use of identified
strategic advantages, address key priorities, or
resolve major problems aren’t really strategies,
just nice ideas.”
What do you think
we ought to do?

77. Measures
Indicators of our progress and achievement
Strategic Goals and Actions
How we accomplish our mission and vision
Vision
What we aspire to be
Mission
What we do
THE STRATEGY-FOCUSED
ORGANIZATION

78. PUTTING MISSION & VISION IN
ACTION
• The Vision and Mission set the general
direction for the organization
• They are intended to help shareholders,
customers, and employees understand what the
organization is about and what it intends to
achieve
• But these statements are far too vague to
guide day-to-day actions and resource
allocation decisions
• Organizations start to make the statements
operational when they define a strategy of
how the vision and mission will be achieved78

79. • Get down to a set of quantifiable strategic
outcomes:
Too vague
More precise
• Make sure your outcomes have a direct
relationship to your goals and your goals have a
direct relationship to your vision, mission, and
values.
Before you can develop your
strategies
Improve Customer Service
Improve average customer response
times by 30% by year end
79

80. Team Kolzow 80
HOW DO WE KNOW IF WE
GOT THERE?

81. Team Kolzow 81
MEASUREMENT: KEY TO
PERFORMANCE
IMPROVEMENT
What gets measured gets done,
and what gets recognized gets
done best. Maison Haire

82. Team Kolzow 82
SOURCE OF DEMAND FOR
ACCOUNTABILITY
Who is demanding improved accountability
from the typical economic development
organization ?

83. Team Kolzow 83
EVALUATION
• An ongoing process that helps in decision-
making
• Should be used to improve projects and
programs, not just measure results
• Did we achieve our desired outcomes; if not, why
not?
• Are we meeting our
customer’s expectations?

84. Team Kolzow 84
EVALUATION
• Accountability implies evaluation
• Goals define what you want to accomplish
• Outcomes provide measurable results
• Evaluation tells you what you have accomplished
• Activity does not necessarily
equal progress

85. Team Kolzow 85
MEASUREMENT: KEY TO
PERFORMANCE
IMPROVEMENT
All of us need to know how we perform; the
most important thing is to find out what
we do well so we can do more of it, and
what we do not do well so that we can
stop doing it. If we don’t do it well, we
must accept that maybe we shouldn’t be
doing it.
Peter Drucker

86. Team Kolzow 86
Subscribe to the Daily Dilbert Buy this strip E-mail this strip

87. EDO OUTCOMES
An economic development organization ideally
seeks to accomplish two sets of outcomes:
• Ability to demonstrate that the region’s economy
and quality of life are improving.
• Ability to demonstrate that its actions are leading
to improvement in the regional economy and
quality of life.
Team Kolzow 87

88. EDO OUTCOMES
• Why is it important for your
stakeholders to know and
understand the difference between
the desired outcomes for the
organization and for those of the
community or region?
Team Kolzow 88

89. Measurements Should:
• Translate customer/stakeholder
expectations into measurable outcomes.
• Evaluate the “quality” of organizational
processes.
• Track improvement.
• Focus efforts on customers.
• Clarify and support org. strategies.
Team Kolzow 89

90. MEASURING PERFORMANCE
Team Kolzow 90

91. • How does the organization demonstrate
what it is accomplishing?
• Inputs – allocating our resources (budgeting
for trade shows)
• Activities – our tasks and actions (organizing
for and attending trade shows)
• Outputs – the level of activity (the number of
trade shows attended)
• Results – (the results from trade show
activity)
• why we are doing what we are doing;
• what kind of impact are we having;
• what positive changes occurred as a result of our
work?
Team Kolzow 91
RESULTS-BASED
PERFORMANCE

92. PERFORMANCE CRITERIA
• “Traditional” economic development
criteria are specific values that can be
easily measured
• Examples:
• Number of companies contacted
• Completion of a strategic action by designated
date
• Number of volunteers trained
• Number of responses from an ad
• Number of trade shows attended
Team Kolzow 92

93. PERFORMANCE CRITERIA
• Traditional performance measures don’t
necessarily relate to the desired outcomes, such
as higher incomes or increased tax revenues
• Relevant performance measures lead to the
achieving of desired outcomes; they measure
and quantify progress
• Effective performance measures allow policy-
makers to determine the success or failure of a
program or activity
Team Kolzow 93

94. PERFORMANCE CRITERIA
• Examples of performance measures
leading to desired outcomes:
• Percentage of customers/clients that are
satisfied with the product/service
• Number of workers graduating from the
training program that received higher-paying
jobs
• Awarding of incentives led to desired number
of higher-paying jobs
• Business incubator generates a high rate of
successful graduates
Team Kolzow 94

95. Team Kolzow 95
MANAGING FOR RESULTS
If you don’t measure results, you can’t tell success
from failure.
If you can’t see success, you can’t reward it.
If you can’t reward success, you’re probably
rewarding failure.
If you can’t see success, you can’t learn from it.
If you can’t recognize failure, you can’t correct it.
If you can demonstrate results, you can win public
support.
Tom Peters

96. Team Kolzow 96
CONCLUSION
What will you do different next week in
your organization’s management as
a result of our session?

97. Team Kolzow 97
HOW DO YOU CONTACT
Team Kolzow?
• Telephone:
• 615-972-4801 – Dr. David Kolzow
• E-mail:
• drkolzow@bellsouth.net
• Address:
Team Kolzow, Inc.
505 Leicester Ct.
Franklin TN 37067