benchmarking excellence for gt bedc 03-26-10 · in partnership with the international economic...

BENCHMARKING EXCELLENCEBENCHMARKING EXCELLENCE

Georgia Institute of Technology43 d A l B i E i D l t C43rd Annual Basic Economic Development Course

Friday, March 26, 2010

Copyright 2010 Georgia Tech Research Corporation

Do Your Best!

“The only things that evolve by themselves in an organization are disorder, friction,

and malperformance ”and malperformance.

Peter Drucker– Peter Drucker

Do Your Best!

“The difference between a successful [organization] and others is not a lack of [organization] and others is not a lack of strength, not a lack of knowledge, but

rather in a lack of will ”rather in a lack of will.

Vi t L b di– Vincent Lombardi

“In Search of Excellence”

Managing for ambiguity…A bias for ACTION (and sense of urgency)A bias for ACTION (and sense of urgency)Close to the customerAutonomy entrepreneurship and innovationAutonomy, entrepreneurship, and innovationProductivity through peopleHands-on value drivenHands-on value drivenStick to the knitting (the business you know)Simple and leanSimple and lean…“Loose-tight” – loose in terms of adaptability, tight in terms of culture

- Thomas J. Peters & Robert H. Waterman

The Basic Formula: From The Expertsp

Excellence is the norm, not the exception…in every ti itactivity.

People [at every level] walk, talk, and breathe excellence.Empowerment, innovation, inclusivity are not “fads.”p , , yPeople are developed beyond their function.C ti i t i Continuous improvement is core.Learning is part of the culture.g p

Obstacles: From The ExpertsLack of engaged leadership (at the community and EDO level)Poor planning – strategic and operationalPoor planning strategic and operationalLack of focusLack of flexibility and adaptabilityy p yPoor communication systemsLack of openness (for innovation and continuous improvement)Culture of blame, rather than culture of learningNon-emphasis on professional development of all staffP l ti hi ith t ffPoor relationships with staffIneffective relationships with partnersLack of appropriate measurement systemsLack of appropriate measurement systemsLack of understanding of what excellence is

Malcolm Baldrige Criteria

LeadershipStrategic PlanningCustomer and Market FocusInformation and AnalysisHuman Resource FocusProcess ManagementBusiness ResultsBusiness Results

Calibrating For ExcellenceEnterprise transformation…Applying 7 Baldrige Criteria plus three others:Applying 7 Baldrige Criteria plus three others:

LeadershipHuman Resource FocusStrategic PlanningCustomer and Market FocusU f T h lUse of TechnologyPerformance Tracking System (rename of Information and Analysis)Communications SystemyProcess ManagementPartnerships and RelationshipsResults

Including specific metrics relevant to EDOs

Benchmarking Excellence

In partnership with the International Economic Development Council (IEDC) ( )Survey of Accredited Economic Development Organizations (AEDOs)

“The Best of the Best” survey – Winter 2009Updates benchmarks from 2006 survey of AEDOs127 indicators based on AEDO, Malcolm Baldrige, ISO 9000, and input from IEDC and Enterprise Innovation Institute

Acknowledgements IEDC: Elizabeth Thorstensen, Sharon Ward and the AEDO Committee17 AEDO f 10 f th 12 t t ith AEDO17 AEDOs from 10 of the 12 states with AEDOsGeorgia Rural Economic Development Center at East Georgia CollegeLocal economic development leaders in GeorgiaGeorgia Tech colleagues

“The Best of the Best”The Beacon Council (Florida)Berks Economic Partnership (Pennsylvania)Business Development Board of Palm Beach County, Inc. (Florida)Cabarrus Regional Partnership (North Carolina)City of Virginia Beach Department of Economic Development (Virginia)F d d L C t E i D l t C ti (Wi i )Fond du Lac County Economic Development Corporation (Wisconsin)Greater Conroe Economic Development Council (Texas)Hampton Roads Economic Development Alliance (Virginia)Jefferson Economic Development Commission (Louisiana)Jefferson Economic Development Commission (Louisiana)Laredo Development Foundation (Texas)Muncie-Delaware County Economic Development Alliance (Indiana)North Carolina's Eastern Region (North Carolina)North Carolina s Eastern Region (North Carolina)Sacramento Area Commerce & Trade Organization (California)State of Delaware Economic Development Office (Delaware)State of Louisiana Economic Development (Louisiana)State of Louisiana Economic Development (Louisiana)Tulare County Economic Development Corporation (California)Tyler County Chamber & Economic Development Council (Texas)

Overall ScorecardKey Quality Management Areas

Overall Average Ratings

Customer and Market Focus

Partnerships and Relationships

ResultsResults

Communications System

Use of Technology

Process Managementg

Strategic Planning

Leadership

Human Resources

1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0

Performance Tracking System

S G i T h E t i I ti I tit tSource: Georgia Tech Enterprise Innovation InstituteBenchmarking Survey of AEDOs 2009

Overall Scorecard

Weighted Average (5 = Best)

Customer and Market Focus 4.4Partnerships and Relationships 4.3Results 4.3Communications System 4.3Use of Technology 4 3

AEDOs score well (4.0 and above)

i ll 10 k f Use of Technology 4.3 Process Management 4.3Strategic Planning 4.1

in all 10 key areas of Quality Management.

g gLeadership 4.1Human Resources 4.0P f T ki S t 4 0Performance Tracking System 4.0

Top 3 Comparison

Weighted Average2009

Customer and Market Focus 4.4Partnerships and Relationships 4 3Partnerships and Relationships 4.3Results 4.3

2006Customer and Market Focus 4.4R lt 4 3Results 4.3Partnerships and Relationships 4.3

Leadership

“Management is doing things right. L d hi i d i th i ht thi ” Leadership is doing the right thing.”

- Peter Drucker- Peter Drucker

Leadership According to Jim Collins

Level 5 Executive – Greatness through professional humility and professional will driven by the causehumility and professional will driven by the cause

Level 4 Effective Leader – Catalyzes commitment to and vigorous pursuit of clear and compelling visionand vigorous pursuit of clear and compelling vision

Level 3 Competent Manager – Organizes people and resources toward the effective pursuit of objectivesresources toward the effective pursuit of objectives

Level 2 Contributing Team Member – Contributes individual capabilities to team, works effectively with p , yothers

Level 1 Highly Capable Individual – Talent, g y pknowledge, skills, good work habits

Leadership

“Great leadership means great service…It’s where he or she can serve the best and

add the most value to other people ” add the most value to other people.”

– John Maxwell

Leadership

Are community leadership supportive of economic development?development?Does the Board reflect the diversity of the community?Does the Board articulate a clear vision and mission to all Does the Board articulate a clear vision and mission to all existing members and newcomers?Does the Board have reasonable expectations of all team members?Does the Board work to remove barriers to progress?D th B d ti l k t t Does the Board actively work to secure more resources to support implementation?Does the Board embrace change and accept new ideas?Does the Board embrace change and accept new ideas?Does the Board have a leadership succession plan?

Leadership Scorecard

Weighted ScoreAVERAGE = 4.1

TOP THREE1 Board has reasonable expectations of staff 4 41. Board has reasonable expectations of staff 4.42. Community leadership supports EDO 4.33. Outcomes evaluated according to annual objectives 4.3

BOTTOM THREE1 Board participates in appropriate board training 3 61. Board participates in appropriate board training 3.62. Community leadership embraces change and new ideas 3.83. Board tolerates and accepts mistakes with new ideas 3.8

Note: This category included 14 indicators.

Human Resources

The “Hedgehog Concept” by Jim Collins

Passion

RTh B t At Resources (Time, Energy,

& Talent)

The Best At

)

Human Resources

Translation of Jim Collins:1. Address the “Who” question first, before the

“What.” Get the right people on the bus who are self disciplined and self motivated Get the wrong self-disciplined and self-motivated. Get the wrong people off the bus…

2 A i l di t (1) h t th ’ 2. Assign people according to (1) what they’re passionate about and (2) what they’re best at.

3 B F ll i 1 d 2 b ill b 3. By Following 1 and 2, team members will be most likely to devote their fullest resources (time, energy, and talent) to the effortand talent) to the effort.

Human Resources

Does the EDO have adequate staff support?D th B d d t ff j b d i ti ?Does the Board and staff agree on job description?Does staff keep board informed?Does staff have ability to influence organization’s program of work?D t ff l l t d l id ?Does staff regularly create and apply new ideas?Does the EDO support professional development?D th EDO t t ff ti f t il ?Does the EDO compensate staff satisfactorily?Does the EDO enable successful leadership transition at all staff le els?staff levels?Is staff turnover not a problem?

Human Resources ScorecardWeighted ScoreAVERAGE = 4.0

TOP THREE1 B d i f d b t ff i t t ti l i 4 31. Board informed by staff on important operational issues 4.32. Staff provided with effective orientation and training 4.33. Staff encouraged in their professional development 4.3g p p

BOTTOM THREE1. Staff are provided incentives for “clean commuting” 2.62. Staff have everything they need to do their jobs 3.93. Practices for successful staff leadership transition 3.93. Practices for successful staff leadership transition 3.9


Strategic Planning

“The Law of Navigation” by John Maxwell

“First rate navigators always have in mind that other people are depending on them and their ability to chart a good course ” They:good course. They:

1. Draw on Past Experience2. Examine the Conditions Before Making Commitments3. Make Sure Their Conclusions Represent Both Faith

d F t and Fact

Strategic Planning

Is the EDO guided by well-conceived strategic plan?Does the EDO engage diverse stakeholders in Does the EDO engage diverse stakeholders in developing, implementing and updating plan?Do stakeholders fully understand and are they committed y yto implementation of the plan?Are satisfactory resources (talent and funding) for i l t ti ?implementation?Are partners engaged to assist with implementation?D th EDO l l bli i d Does the EDO regularly publicize success and progress to internal and external stakeholders?Is performance tracking is embedded into the plan?Is performance tracking is embedded into the plan?Is there ongoing modification based on feedback?

Strategic Planning ScorecardWeighted ScoreAVERAGE = 4.1

TOP THREE1 EDO regularly monitors and tracks implementation 4 51. EDO regularly monitors and tracks implementation 4.52. The plan adequately addresses marketing & recruitment 4.53. EDO is guided by well-conceived strategic plan 4.4

BOTTOM THREE1 The plan adequately addresses tourism 3 41. The plan adequately addresses tourism 3.42. The plan adequately addresses sustainability / green 3.43. The plan adequately addresses downtown development 3.5



“No enterprise can exist for itself alone. It ministers to some great need it It ministers to some great need, it

performs some great service…failing therein it ceases to be profitable and therein, it ceases to be profitable and

ceases to exist.”

– President John Calvin Coolidge


Is the EDO accessible?Is the CUSTOMER is at the HEART of the development and implementation of services at all times?Are the EDO staff known for being “customer friendly”?Are information and marketing materials designed according to what’s important to Customer (not EDO)?Do services reflects good understanding about the current market and changing market dynamics?Are services modified according to customer feedback?.Is “How can we do better?” an every day question?

Customer and Market Focus Scorecard

Weighted ScoreAVERAGE = 4.4Area of Excellence:

TOP THREE1 EDO’s office is easy-to-find in a central location 4 7

All metrics rated 4.0 +

1. EDO s office is easy-to-find, in a central location 4.7 2. EDO effectively understands needs of prospects 4.63. EDO’s office provides privacy for conferences 4.6

BOTTOM THREE1 EDO effective at addressing needs of visitors / newcomers 4 01. EDO effective at addressing needs of visitors / newcomers 4.02. EDO effective at understanding needs of workforce 4.2 3. EDO effectively understands needs of citizens 4.2


Use of Technology

“The first rule of any technology used in business is that automation applied to an business is that automation applied to an

efficient operation will magnify the efficiency The second is that automation efficiency. The second is that automation

applied to an inefficient operation will magnify the inefficiency ”magnify the inefficiency.

– Bill Gates

Use of Technology

Is the EDO viewed as a leader in the use of technology?Is the Web identity what you want it to be?How can technology be used as a tool to better serve How can technology be used as a tool to better serve and stay engaged connected with those you serve?How can technology be used to keep team members How can technology be used to keep team members connected and engaged?How can technology be incorporated to make your How can technology be incorporated to make your processes more efficient and effective…to make your operational life easier?p

Use of Technology Scorecard

Weighted ScoreAVERAGE = 4.3G 3

TOP THREE1. Effective use of Web-based services 4.62. EDO provides online services to customers 4.5 3. Adequate communications tools for staff connectivity 4.5

BOTTOM THREE1. EDO viewed as community leader in use of technology 3.81. EDO viewed as community leader in use of technology 3.82. EDO has satisfactory budget for technology upgrades 4.03. EDO disposes of old technologies in sustainable manner 4.1


Performance Tracking

“When you start with an honest and diligent effort to determine the truth of your effort to determine the truth of your situation, the right decisions often

become self evident ”become self evident.

Ji C lli– Jim Collins


“The Power of Performance Measurement” by David Osborne and Ted Gaeblery

1. What gets measured gets done.2. If you don’t measure results, you can’t tell success from

failure.3 If you can’t see success you can’t reward it3. If you can t see success, you can t reward it.4. If you can’t reward success, you’re probably rewarding

failure.5. If you can’t see success, you can’t learn from it.6. If you can’t recognize failure, you can’t correct it.6 you ca ecog e a u e, you ca co ec7. If you can demonstrate results, you can win public

support.


Does the EDO utilize an effective performance tracking system?system?Do the Board and staff have information they need to do their job effectively?their job effectively?Does performance tracking include metrics identified in the strategic plan and program of work, and measure the g p p g ,impact of specific strategies and actions?Does the EDO make appropriate changes to work plans?Does the EDO make adjustments to staff salaries and bonus scales based on performance tracking?Does performance tracking helps decision makers make decisions about future investment of time and funding?

Performance Tracking Scorecard


TOP THREE1 Board / staff receive all information needed to work well 4 21. Board / staff receive all information needed to work well 4.22. EDO has effective performance tracking system 4.23. System has all information to measure EDO work quality 4.1

BOTTOM THREE1. System measures impact of new ideas 3.9 2. System used to adjust salaries and bonuses 3.93. System used to make changes to strategic plan / program 3.9

Note: This category included 10 indicators. Large percent of don’t know or NA replies.

Communications

“There is a simple way to package information that under the right information that, under the right

circumstances, can make it irresistible.”

– Malcolm Gladwell

Communications

Are there effective communications among and between your Board and staff?your Board and staff?Are community stakeholders adequately informed on EDO activities and progress?activities and progress?Are state, regional and federal partners adequately updated?pIs the EDO’s Web site updated, easy to navigate, and ranked highly on Internet search engines?Does the EDO implement an adequate communications plan with the public?

Communications ScorecardWeighted ScoreAVERAGE = 4.3

TOP THREE

1 EDO l l i l l tt t 4 51. EDO regularly issues news releases, newsletters, etc. 4.52. EDO Web site easy to navigate 4.53. EDO Web site regularly updated with all key information 4.5g y p y

BOTTOM THREE

1 EDO ff ti t i f i l bli 3 91. EDO effective at informing general public 3.92. Community stakeholders adequately informed 4.03. EDO Web site ranks highly on key search engines 4.2g y y g


Process Management

“An organization’s ability to learn, and translate that learning into action rapidly translate that learning into action rapidly, is the ultimate competitive advantage.”

– Jack Welch

Process Management

Does the EDO have the ability to respond in a timely and effective manner?effective manner?Does the EDO have an effective referral system with partners?partners?Does the Exec have adequate control over operations?Do non-Exec staff have adequate control over their areas Do non-Exec staff have adequate control over their areas of purview?Does the EDO effectively utilize internal and external Does the EDO effectively utilize internal and external sources of knowledge?Are changes made based on outcomes and stakeholder gfeedback…is there accountability?

Process Management Scorecard

Weighted ScoreAVERAGE = 4 3AVERAGE = 4.3

TOP THREE1 EDO d t t i ti l ff ti 4 61. EDO responds to customers in timely, effective manner 4.62. EDO has effective referral system with partners 4.63. Executive Director has adequate control over EDO 4.5

BOTTOM THREE1. EDO implements recycling and other green practices 3.6p y g g p2. EDO has adequate level of reserve funds 3.93. EDO has adequate staff and resources 4.1


Partnerships

“The way a team plays as a whole determines its success You may have the determines its success. You may have the

greatest bunch of individual stars in the world but if they don’t play together the world, but if they don t play together, the

club won’t be worth a dime.”

– Babe Ruth

Partnerships

Does the EDO have effective relationships with internal and external partners?internal and external partners?Does the EDO collaborate effectively with other EDOs in the region?EDOs in the region?Are EDO board members and staff actively engaged in other community-based organizations?g g y gDoes the EDO collaborate effectively with other community based organizations?Has the EDO been able to expand resources through relationships with alternative funding

?sources?

Courtesy Joy Wilkins, Georgia Tech

Partnerships Scorecard

Weighted ScoreAVERAGE 4 3AVERAGE = 4.3

TOP THREE1. EDO has effective relationship with partners 4.62. EDO has effective relationship with local government 4.63. Board members active in other community organizations 4.5y g

BOTTOM THREE1 EDO expands funding resources through relationships 3 81. EDO expands funding resources through relationships 3.82. EDO collaborates effectively with other CBOs 4.23. Staff actively involved in other community organizations 4.2


Results

“You can’t build a reputation on h t ’ i t d ” what you’re going to do.”

- Henry Ford

Results

Does the EDO display high standards – doing your best…?D th EDO di l hi h thi d i it i ht ?Does the EDO display high ethics – doing it right…?Does the EDO know what success looks like – meet or exceed annual objectives?exceed annual objectives?Are Board and staff satisfied with performance?Are community leaders and citizens satisfied with performance?I th li bl f di t t ?Is there a reliable funding structure?Is the EDO considered a local expert on economic development matters?development matters?

Courtesy Joy Wilkins, Georgia Tech

Results ScorecardWeighted ScoreAVERAGE = 4.3

Top Three in 2009 were also the Top Three in 2006

TOP THREE 1 EDO obeys laws and regulations 4 7

the Top Three in 2006

1. EDO obeys laws and regulations 4.72. EDO demonstrates high standards and ethics 4.73. EDO has positive impact on community’s development 4.6

BOTTOM THREE1. EDO has reliable funding structure from several sources 3.72. Citizens are satisfied with performance 3.93. EDO receives fair and adequate media coverage 4.0


Innovation Management


TOP THREE

1. EDO effectively utilizes internal knowledge sources 4.52. EDO shares and receives ideas with other EDOs 4.53 EDO is innovative 4 43. EDO is innovative 4.4

BOTTOM THREE

1. Community leadership embraces change and new ideas 3.82. Board tolerates and accepts mistakes when trying ideas 3.83 Board expects and rewards innovative performance 4 03. Board expects and rewards innovative performance 4.0

Note: Interwoven among the 127 indicators were 11 indicators related to innovation.

Top 10 Best Practices

Weighted Score

1. EDO obeys laws and regulations 4.72. EDO demonstrates high standards and ethics 4.73. EDO has easy-to-find office in central location 4.74. EDO effectively understands needs of prospects 4.75 EDO has effective relationship with partners 4 65. EDO has effective relationship with partners 4.66. EDO’s offices provide privacy for conferences 4.67. EDO is customer-friendly 4.68. EDO is responsive to customers and stakeholders 4.69. EDO has had positive impact on community ED 4.610 EDO is considered local expert on economic matters 4 610. EDO is considered local expert on economic matters 4.6

Takeaways…

CHAMPION ORGANIZATIONS display enterprise excellence by focusing on the customer leveraging excellence…by focusing on the customer, leveraging partnerships, and achieving results.

AEDOs scored well (4 0 or above) in all 10 key areas of AEDOs scored well (4.0 or above) in all 10 key areas of quality management, signaling enterprise excellence.

O ll 2009 ti iti th 2006Overall, 2009 ratings more positive than 2006.

Greatest opportunities for improvement in the Performance T ki H R d St t i Pl iTracking, Human Resources, and Strategic Planning.

AEDOs received high marks for being innovative.

AEDOs received low marks for “green” practices.

The Call for Transformation

“It is not necessary to change. Survival is not mandatory.”

– W. Edwards Deming

The Call for Transformation

“Culture changes when the organization is g gtransformed; the culture reflects the realities of the people working together every day.”p p g g y y

- Frances Hesselbein

Why Be Good…

When You Can be Great?

“Good-to-great transformations never happened in one fell swoop…

Sustained great results depend upon building Sustained great results depend upon building a culture of self-disciplined people who take

disciplined action ”disciplined action…- Jim Collins

THANK YOU…

Joy Wilkins CEcDJoy Wilkins, CEcDGeorgia Tech Enterprise Innovation InstitutePhone: 404-895-6115Email: [email protected]

benchmarking excellence for gt bedc 03-26-10 · in partnership with the international economic...

Documents