— 1 — © 2012 vital economy, inc. best practices for community economic development 25 april...

— 1 —© 2012 ViTAL Economy, Inc.

Best Practices for Community Economic Development

25 April 2013

ViTAL Economy Alliance Frank Knott - [email protected]

Jim Haguewood – [email protected] Madsen – [email protected]

Economic Development Organization Readiness Assessment Tool

SeVEDS


Terms of Use

Limited License. Subject to these Terms of Use, we grant to the local sponsor and its funding partners for this Best Practice for Community Economic Development, Readiness Assessment Tool a non-exclusive, non-transferable, limited license to access and use the information, text, graphics, data, and other content in this report for their personal, noncommercial use. You may also incorporate portions of the content of this report in documents and other works of authorship that are mainly the product of your own intellectual effort, and may distribute and disseminate those documents and other works, but only if neither you nor anyone else receives any payment or other value that is primarily attributable to the content used.

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Table of Contents

Economic Development: Art and Science........................................ 4

Fundamentals................................................................................... 5

Open Systems Planning Model........................................................ 6

How to Use the Assessment Tool..................................................... 7

10 Best Practices of Regional CED.................................................. 8 & 9

Assessment Questions ................................................................... 10-29

What we do really well?.................................................................... 31

Where can we improve? How? By When....................................... 32


Economic Development: Art and Science

This assessment tool is intended to assist economic development organization Directors and Leadership in elevating their organization and regional CED system through a disciplined comparison against industry best practices in CED, thereby benefiting the entire region.

Nothing is more critical to your success as regional agents for change than an honest assessment of your region’s practices conducted in the spirit of TQM continual improvement principals.

This assessment tool compares the regional CED system against Ten CED Best Practices

• Each of the ten elements poses four qualitative and/or quantitative questions for depth of analysis

• Each question should enable the CED system and partner organizations to identify areas where they excel, need improvement, and where they can introduce new standards of excellence that will benefit their region


Fundamentals

CED – Community Economic Development is a holistic balanced approach which addresses Economic Vibrancy, Human Capital, and Quality of Place, all in the context of an Innovation Ecosystem fostering a 21st Century Knowledge Based Economy.

Collaboration in a transformative CED effort requires significant effort to reach out across traditional geo-political boundaries to empower Private, Public, and Non-Profit sector leaders and citizens to take responsibility for their own regional economy.

True collaboration requires a commitment to Open Systems Planning where each collaborator willingly and openly shares information and resources. Open systems can efficiently exchange information, resources and knowledge, closed systems cannot.

This Readiness Assessment tool has been adapted from the ViTAL Economy Regional CED Best Practices™ guide with input from the National Association of Development Organizations (NADO). The objective is to assist regional CED organizations to adapt best practices into their organization that will be of significant benefit throughout the entire region as they work to improve their community and economy.

Total Quality Management (TQM) principles use strategy, data, and effective communication to integrate quality improvement principles into the culture and activities of the CED system and partner organizations. The regional CED Best Practices elements presented herein are TQM principles applied to Community Economic Development.


Vital Economy Open Systems Planning Model

Input OutputTransformation

• Market Needs Local => Global

• Indigenous Resources & Assets

• Knowledge & Creativity

• Entrepreneurs

• Workforce Skills & Capacity

• Access to Capital

• Attitudes, Hopes & Fears

• Barriers & Enablers to business

• Innovation, Entrepreneurship, Incubation

• Tech Transfer, Producing Products & Services

• Leveraging Indigenous Resources

• Connecting the Dots Collaboration & Critical Mass

• Mobilizing across regions and industry sectors

Feedback Loop = Fueling the Future

Effective Open Systems Planning leverages shared

information rather than controlling information

• Community vision & goals

• Products & Services

• Jobs, Wages & Benefits

• Quality of Place

• Community Prosperity & Civic Pride

• Economic Growth

• Capital Generation for Reinvestment

Regional CEDS


This assessment tool is best employed in a peer-facilitated review. It is recommended that the assessment be conduced in a group setting to obtain a broad perspective and enable an system-wide learning occasion. You are assessing your regional CED system, inclusive of the individual partner organizations which collaborate on a consistent basis for economic development.

1. For each question, rank the CED system for its performance over the past 2-5 years.

2. List major barriers the system faces for each of the Ten Best Practice elements

3. Highlight areas of strength – What does the CED system do really well? The answer may lie outside the questions posed by the assessment tool. Answers may come from a particular strength of one or more partner organizations

4. Discuss and record areas for improvement and actions for implementing Best Practices into the CED system and partner organizations

5. Prioritize actions and next steps.

6. These actions and next steps become a guide to continual improvement in the spirit of Total Quality Management (TQM) principles.

Using the Assessment Tool


Regional CED Best Practices – #1-5

1. Regional Collaboration: Meaningful & sustainable grass-roots collaboration across public, private, non-profit and traditional political boundaries

2. Leadership Excellence: Empowers proactive leadership to take ownership of their economy; grows leaders with accountability, authority, legitimacy & transparency

3. Change Management: Adopts the eight steps critical to managing change that enables the region to more effectively participate and compete in the global economy

4. Balanced Approach: Integrates economic development, education & workforce development assets with the private sector to build effective knowledge based economic, human capital & quality of place centers of excellence

5. Asset Based Approach: Identify, connect and leverage tangible and intangible assets to sustainably grow and transform the regional economy


Regional CED Best Practices # 6-10

6. Measurable Outcomes: Employs measurable benchmarks, goals and strategies which transform the region through measurable outcomes

7. Innovation & Entrepreneurship: Builds innovation ecosystems that create a lasting regional climate of entrepreneurship, risk taking and innovation

8. Life Cycle Finance: Provides access to a life cycle of equity and debt financing for regional public, private and non-profit ventures

9. Regional Brand Promise: Defines, creates, communicates and delivers on a clear brand promise that promotes & sustains regional competitive advantages

10.Regional Transformation Mindset: Sustains commitment to CED as a journey that is a marathon not a sprint, transformative not incremental


Regional CED Best Practices – #1


Questions Low1 2

Med3 4

High5

Examples of substantial Public/Private collaboration across the CED system over the last 5 yrs.

Low1 2

Med3 4

High5

Examples of substantial Non-Profit Collaboration in CED over the last 5 years

Low1 2

Med3 4

High5

Demonstrated results of Public Sector collaboration across political boundaries for CED

Low1 2

Med3 4

High5

How effective has the CED system been in fostering broad-based collaboration?

Low1 2

Med3 4

High5




11

Perceived Barriers: Advances in collaboration have come primarily because of individuals sitting in individual chairs.We need to institutionalize a culture of collaboration!

Comments: Examples of Collaboration:• SeVEDS & BDCC with state and several towns• Waterline extension business plan competition Brooks House• BF Waypoint center• MS Chamber with two towns and several private businesses• Bi town effort

We’re moving the needle. Collaboration efforts are a lot different then five years ago• EDA grant• Co-op building• Grafton Cheese• Pending major hospital collaboration• EDA Flood Grant• Molly Stark, CT River byway• Route 100 byway• CDBG-DR• Whitingam/Wilmington school collaboration• WRC Brownfields program




Questions Low1 2

Med3 4

High5

Does the CED system’s leadership body consist of 60% Private and 20% Non-Profit sector leaders.

Low1 2

Med3 4

High5

Are leaders involved in strategy development and implementing sub-committees?

Low1 2

Med3 4

High5

Is there a consistent leadership development system in place?

Low1 2

Med3 4

High5

Does the CED system employ the Open Systems Planning Model?

Low1 2

Med3 4

High5



13

Comments: #SeVEDS is majority private sector and BDCC is also – WRC is municipal representationLeaders involved in strategy development and impose committee – SeVEDS on its way

Perceived Barriers: Not enough younger people involved. Don’t have a leadership development process.Don’t have a habit of identifying and engaging potential leadersWeak networkNot enough change – change creates opportunities for people to rise up.





Questions Low1 2

Med3 4

High5

Record of willingness to embrace change and proactive responsibility for economy

Low1 2

Med3 4

High5

Examples of analysis of regional economic change in the face of global economic forces

Low1 2

Med3 4

High5

Understanding of change management concepts and its role in CED

Low1 2

Med3 4

High5

Is there a defined and measurable sense of urgency that has been communicated

Low1 2

Med3 4

High5




15

Comments: We might have groups willing to embrace change – but in aggregate it can be dysfunctional as various groups aren’t going in the same direction Attempts at looking at responding to energy global economic forces – businesses are good at it Is there a defined sense of urgency that has been communicated – how do you measure it? I think it’s getting out there There is some sense that people come here because there is no change. Things remain stagnant - People know something’s is wrong – that don’t necessarily make the connect to economic developmentPeople define it in terms of their property taxes Perceived Barriers: We get in our own way




Questions Low1 2

Med3 4

High5

Does the CED system engage Education & Workforce Development entities in CED?

Low1 2

Med3 4

High5

Is the CED system focused on economic strategies & opportunities vs. managing projects

Low1 2

Med3 4

High5

Are Quality of Place values integrated into CED strategies in a meaningful way?

Low1 2

Med3 4

High5

Are there assets that rise to the level of Excellence identified and integrated into CED

Low1 2

Med3 4

High5




17

Comments: • We’re just getting started (workforce & education integration)• Strategies vs: projects – SeVEDS is strategy driven – outside of that – project driven

• Quality of place – always the first thing that gets brought up, don’t have a strong history of strategies hard to see quality of place integrated, Quality of place are core value – little more gruesome on this one – quality of place resistance as opposed to opportunity, doesn’t contribute to good public dialogue – we need to show how this integrates into strategies We need to better define quality of place – depends on who you ask, by age – we think we’re all good because we’re

• Assets: Scenic Beauty, Made in Vermont

Perceived Barriers: Activism gets in the way of true QofP strategy.Need a common language of QofPPerception doesn’t match reality




Questions Low1 2

Med3 4

High5

Has the region engaged in an initiative to map unique tangible and intangible assets?

Low1 2

Med3 4

High5

Have assets been linked to industry clusters and priorities for economic potential?

Low1 2

Med3 4

High5

What is the level of engagement of the CED system in broadband deployment and utilization?

Low1 2

Med3 4

High5

Examples of regional assets that have been leveraged and linked to outside markets.

Low1 2

Med3 4

High5




19

Comments: We did asset mapping Broadband – in pockets, in development, schoolsRegional assets that have been leveraged – ski resorts, SIT linked to outside resorts

Perceived Barriers:


Regional CED Best Practices # 6


Questions Low1 2

Med3 4

High5

Do economic metrics exist that link to primary regional issues of challenge and opportunity?

Low1 2

Med3 4

High5

Does every strategy and action have metrics and goals?

Low1 2

Med3 4

High5

Does the CED system regularly use economic impact & data analysis tools?

Low1 2

Med3 4

High5

Examples of implemented strategies which have successfully reached goals to grow the economy.

Low1 2

Med3 4

High5




21

Comments: SeVEDS in the process of developing strategies as part of the CEDS. Did not answer questions 6.2 and 6.4

Perceived Barriers:




Questions Low1 2

Med3 4

High5

Has the entrepreneurial climate been assessed (breadth and depth)?

Low1 2

Med3 4

High5

Does the region know its Innovation Index Rating, and its regional drivers of innovation.

Low1 2

Med3 4

High5

Does the region facilitate the interaction of entrepreneurs and opportunities?

Low1 2

Med3 4

High5

Does the region have a method of building external innovation alliances?

Low1 2

Med3 4

High5




23

Comments: Some effort through early SeVEDs processVMEC at state level

Perceived Barriers: Not much of a risk taking culture




Questions Low1 2

Med3 4

High5

Does the organization offer any financing services?

Low1 2

Med3 4

High5

Does the region have connections to life-cycle equity funding (angel, venture, etc)?

Low1 2

Med3 4

High5

Is the CED system actively engaged in connecting opportunities with sources of funding?

Low1 2

Med3 4

High5

Does the CED system engage and have relationships with traditional debt finance sources?

Low1 2

Med3 4

High5




Comments: BDCC plays this role to some extent –really no place unless you know where to askHospitality – no funds availableLife Cycle Equity funds – we do this on a project to project basis as opposed to systematic

Perceived Barriers: We don’t have any communities’ banks, we have lost bank connections – we can get everyone else around the table but the bank




Questions Low1 2

Med3 4

High5

Is there a clear understanding of regional identity that has been in place for more than 5 years?

Low1 2

Med3 4

High5

Is the brand unique to the region, based on assets, and applied across multiple sectors

Low1 2

Med3 4

High5

Does the region have an active, focused communication strategy (internal and external)?

Low1 2

Med3 4

High5

How do you rate the effectiveness (ROI) of the communication strategy?

Low1 2

Med3 4

High5




27

Comments: Clear unofficial regional brand – arts and creative economy, gateway to Vermont This is not the same as a CED oriented brand

Did not answer questions 9.3 and 9.4 as SeVEDS does not yet have a brand strategy to measure.

Perceived Barriers:

Jim Haguewood

Is the region engaged in a CED intaitve?Is their a brand? Was it developed from the asset mapping and community input.Is the brand authentic, regionally unique?Does the region have an active and purposeful communication strategy, internal and external.Does the region have a list of strategic goals and objectives in respect to the brand and communication strategy


Regional CED Best Practices #10

10. Regional Transformation Mindset: Sustains commitment to CED as a journey that is a marathon not a sprint, transformative not incremental

Questions Low1 2

Med3 4

High5

Has the CED system had sustainable and growing funding over the past 5 years?

Low1 2

Med3 4

High5

Examples of vision & goal based strategies that have led to economic transformation

Low1 2

Med3 4

High5

Is there a systematic and disciplined process for regional prioritization of CED projects?

Low1 2

Med3 4

High5

Has the CED system adopted consistent processes to evaluate & improve their performance?

Low1 2

Med3 4

High5



10. Regional Transformation Mindset: Sustains commitment to CED as a journey that is a marathon not a sprint, transformative not incremental

29

Perceived Barriers:

Comments: SeVEDS funding is a lot of grants and one time funds so we lack sustainability so far.

Since SeVEDS is just getting started with setting strategies as part of the CEDS, we did not answer question 10.2, 10.3, or 10.4


Cumulative Assessment Bar Chart

Best Practice CategoriesLow

1 2Medium

3 4High

5

Regional Collaboration

Leadership Excellence

Change Management

Balanced Approach

Asset Based Approach

Measureable Outcomes

Innovation & Entrepreneurship

Life Cycle Finance

Regional Brand Promise

Regional Transformation Mindset

Organization: SeVEDS

2.5

2.75

2.75

1.75

3

1.75

2

2

1.5

2.75


What we do really well?


Where can we improve? How?

Where can we improve?Example: Engage education system in CED.

How will we improve?Example: Within 3 months gain a commitment by a college president to be active in leadership

This is a process of continual improvement. Prioritize five (5) areas identified for improvement that are most important for the organization. Define the action(s), how you will implement and the timeframe.


Assessment Summary

Participants:Patrick Moreland, Barb Sondag, Bill Colvin, Martin Langeveld, Adam Grinold, Laura Sibilia, Stephan Morse, Jeff Lewis, Pat Moulton-Powden, Gail Nunziata, Rachel Selsky, Jenna Pugliese, Susan McMahon, Drew Richards, Bob Stevens, Jill James, Chris Moore, David Alstadt, Jesse Woosley, Tap Barnhill, Bill Anton, Gretchen Havreluk

— 1 — © 2012 vital economy, inc. best practices for community economic development 25 april...

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