strategic planning presentation

Wisconsin Basic Economic Development Course

Strategic Planning for Economic Development

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

SOME ORGANIZING APPROACHES

Wisconsin Basic Economic Development Course Madison, Wisconsin 10-13 September 2012 3

• 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

A CHOICE: STRATEGY OR TREND


MARKET FORCESPAST CONDITIONS

LONG ANDSHORT TERM

TRENDS

CURRENT REALITY

LONG AND

SHORT TERM

STRATEGIES

FUTURE VISION

LONG ANDSHORT TERMTRENDS

FUTUREOUTCOMES

By knowing where we have been and where we are today, we can understand where we are headed, and take actions to reach an alternative vision of the future.

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

INCITING A CHAIN REACTION


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

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

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

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)

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

SITUATION TARGET PATH


GOALS

INPUT

ANALYSIS

ACHIEVABLEOBJECTIVES

IMPLEMENT-ATION

PRIORITIES

RESOURCES

ASSESS

MONITOR

REVISEDSTRATEGIES

STRATEGIES &ACTION PLANS

VISION-BASED OR GOAL-BASED PLANNING

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

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

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

STAKEHOLDERS


ECONOMICDEVELOPMENT

INDUSTRY GROUPS

BUSINESS

ELECTED OFFICIALS

GOVERN-MENT

ORGANIZ-ATIONS

CITIZENS

PARTNER GROUPS

ED STAFF

PROPERTY OWNERS

FUNDERS

INSIGHT

GRIDLOCK

CONSENSUS

SUPPORT

VISION

LEADERSHIP

OBSTRUCTION CONNECTIONS

EXPERTISE

IGNORANCELEGITIMACY

UNDERMINING

ACCESS

DISSENT

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

DEALING WITH STAKEHOLDERS


INFL

UEN

CE

INTEREST

SATISFY MANAGE

MONITOR INFORM

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

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

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

VRIO


VALUE RARITY IMITABILITY ORGANIZATION

• 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?

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

ASSESSMENT TOOLS

• Organizational structure and leadership• Elected officials and community

support• Funding for economic development• Economic development research• Economic development staffing• Collaboration and networking• Citizen involvement• Economic development planning• Economic development

implementation• Business attraction, retention, and

expansion• Entrepreneurship and small business

development• Retail development

• Downtown business district• Tourism development• Work force, education, and training• Economic development marketing• Communications and outreach• Economic development tools• Community infrastructure• Buildings and sites• Quality of life• Community appearance• Sustainability• Local ordinances and regulatory

framework• Disaster susceptibility and mitigation

planning


Place Dynamics – Assessment considers up to 275 characteristics

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

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?

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

NOMINAL PROCESS EXAMPLE


SOLICITIDEAS

GROUPSIMILAR

IDEAS

VOTETO RANK

THEM

GOAL GRID


PRESERVE

ELIMINATE

ACHIEVE

AVOID

DO YOU HAVE IT?

DO YOU HAVE IT?

DO

YOU

WAN

T IT?DO

YO

U W

ANT

IT?

YES

YESYES

YESNO

NO

NO

NO

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.

STRATEGIES AND ACTION PLANS


Strategies are comprised of programs or initiatives. These are in turn made up of specific action steps.• Initiatives

— Value— Appropriateness— Feasibility— Acceptability— Cost-benefit— Timing

• Action plans— What is the sequence of steps?— What outcome is expected?— Who is responsible for what?— What resources are needed?— What is the timeline?— How is progress measured?

STRATEGIC PLANNING TOOLS


• Balanced scorecard• Cause and effect diagram• Critical success factors

analysis• Decision trees• Force field analysis• Futures wheel

• Gap analysis• Pairwise comparison• Pareto analysis• Risk analysis• Six thinking hats• Storyboarding

BALANCED SCORECARD


A tool for aligning mission, resources, change, and outcomes (modified): • Long term community perspective –

mission, values, and vision of the organization

• Customer perspective – desires and expectations of the organization’s clients

• Internal process perspective – resources, staffing, and process

• Learning and growth perspective – self improvement; measurement, evaluation, and adjustment

STRATEGYCUSTOMERPERSPECTIVE

INTERNAL PROCESS

PERSPECTIVE

LONG TERM COMMUNIT

Y PERSPECTIV

E

LEARNING &GROWTH

PERSPECTIVE

CAUSE AND EFFECT DIAGRAM


Fishbone diagram - 5 “whys”

EFFECT

FORCE FIELD ANALYSIS


DESCRIBETHE

CHANGE YOU

WANTTO SEE

FORCES FOR CHANGE FORCES AGAINST CHANGE

ASSIGN A WEIGHT

TOTAL _____ _____ TOTAL

WHAT CAN BE STRENGTHEND?

WHAT CAN BE CHANGED?

WHAT CAN BE WEAKENED?

WHAT SHOULD BE THE PRIORITIES?

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?

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

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 and mental healthiness of people in a region?

More producers/suppliers are acquiring new skills in order to capture demand.

Measure: Number of producers/suppliers partnering with this project who 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 networks that support civil society?

New institutional partnerships lead to new resources, better strategies, and improved regional infrastructure.New allies provide opportunities for value chain construction.

More deals, where a buyer buys something more than once, in targeted markets the business can serve.

Measure: Structures in place that create local ownership or influence over wealth. Measure we will use – A regional certification support center exists. Measure: Number of builders and retailers in our emerging value chain and types of help being offered.

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, innovation and creativity?

Buyers in regional/urban markets will better understand the value and benefits of being a part of the CA certified wood products value chain.More people are willing to bend outside of what they do or learn different things to make this work.

Measure: Number of buyers who become market partners/allies. Measure: Number of producers participating in the chain and operating in ways that support wealth creation.

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 environmental assets in a region?

Improved forest ecosystem health. Measure: Number of landowners actively managing and acreage being 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 constructed infrastructure?

Producers will have the capacity to provide green and local wood products to regional and urban markets.

Measure: Investment in new equipment or technology to meet demand.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 monetary assets at the individual and community level?

More producers and buyers will increase their earnings through new market relationships and re-invest those earnings in their operations.

Measure: Number and value of producers and buyers that are re-investing 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 held by individuals or organizations that can be used to achieve desired ends in the region?

More organizational players are engaged in and actively supporting the value chain.

Measure: Number of organizations engaged and how they’ve participated (giving referrals, coming to meetings, opening doors, etc.)

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

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

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

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

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

QUESTIONS?


MICHAEL STUMPF, CEcD, AICPPrincipal – Place Dynamics LLC

[email protected]

(262) 510-2131(720) 413-5801

www.placedynamics.com

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