Organising IPA services around investor needs Peter Collens December 2010

2 Overview What does “best practice” look like? Austrade systems for handling investor inquiries Guidelines for handling investor enquiries Providing the information needed CRM system

3 What does “Best Practice” look like? The World Bank identified three key capabilities that were shared by the top performing IPAs: A professional business service culture was fostered with a customer focused approach taken to target, influence and generate productive FDI deals that would provide economic benefit to the IPA’s domestic market. Knowledge management and knowledge sharing initiatives were undertaken to develop deep organisational knowledge in sectors, markets and companies. Systems were developed to ensure professionalism and consistency in the quality of facilitation and customer service. They evaluated best practice in Structure, Process, People, Systems and Technology.

4 Today’s Focus is on the “Process” Process Make facilitation a priority* Develop account managers into reservoirs of knowledge in particular sectors Coordinate facilitation with networks and partners sub nationally and overseas *Facilitation is defined as the provision of information and services.

5 What is involved in facilitation? Facilitation Providing accurate and timely information Providing specific services (FILs, Site Visits, referrals to professional service firms etc.) Managing the quality and efficiency of services delivered Client management Project management Maintaining position of neutrality

6 Investment Promotion and Attraction Set Policy Research Benchmarking Develop Promotional Campaign Market Segmentation Implement Campaign Target Engagement Leads Outcome Set direction for economic development in Australia Source facts around industry development and company international expansion Comparing Australian industry to global industries and trends Identifying markets and target companies to promote Australian opportunities Tailoring specific value proposition and market strategies for promotion Continual promotional activities around proposition Delivering the proposition “Why Australia” Qualified investment projects with intent to invest Verified productive FDI project in Australia Stakeholders provide direction and industry focus (DIISR, NIAB, FIRB, Commonwealth Departments) Conduct gap analysis Source evidence (historical & empirical) Identify Global trends Establish the comparative and competitive advantages of the Australian opportunity Identify key markets Identify target companies Emerging companies vs. mature companies Emerging markets vs. mature markets Develop sales manual Develop specific market propositions using capability analysis Conduct competitor analysis (SWOT) Gain stakeholder endorsement Identify local market considerations (culture, legal, economic) Learn from Case studies Training Match capability with opportunity Refine target list Allocate responsibility around contact and delivery Training Create marketing collateral Events Generate Prospects Direct contact PR/ Advertising Stakeholders Sponsorship e-Channels Provision of Information around needs Client Management Manage FILs Manage Site Visits Corporate Partners Engage Stakeholders Incentives Other Government programmes Measure economic and industry development impact of FDI Feedback loop between policy, strategy and implementation

7 Stages of the Investment Facilitation Process 3. Lead4. Success Invest Stage Description of Activities Originating either offshore or onshore, directed to appropriate staff Investment Qualifying Questionnaire or Investor Service Handbook to be used Pre-qualification done on the investor to ascertain if investor is capable and committed Provided with appropriate information or referrals. Originating either offshore or onshore, directed to appropriate staff Investment Qualifying Questionnaire or Investor Service Handbook to be used Pre-qualification done on the investor to ascertain if investor is capable and committed Provided with appropriate information or referrals. Continued assistance provided to the investor, project seen to progress in seriousness. Main interaction is between investor and offshore investment staff. If information needs are quite detailed ICRs may be given or a site visit discussed. As information needs become detailed and go beyond what is available ‘off-the-shelf’, offshore investment staff will make requests to industry teams for further information. Continued assistance provided to the investor, project seen to progress in seriousness. Main interaction is between investor and offshore investment staff. If information needs are quite detailed ICRs may be given or a site visit discussed. As information needs become detailed and go beyond what is available ‘off-the-shelf’, offshore investment staff will make requests to industry teams for further information. Project has progressed significantly, supply of tailored information to investor (eg. FIL), meetings, event involvement etc. Lead projects are considered likely to proceed to investment success. Investor may be planning a site visit to Australia to meet with interested or related parties and advance their planning. The visit team, industry team and offshore investment staff will to some extent be involved in site visits. Project has progressed significantly, supply of tailored information to investor (eg. FIL), meetings, event involvement etc. Lead projects are considered likely to proceed to investment success. Investor may be planning a site visit to Australia to meet with interested or related parties and advance their planning. The visit team, industry team and offshore investment staff will to some extent be involved in site visits. Project has progressed significantly, such that investor is prepared to sign off on the details of their proposed Australian investment. Investment may have already taken place and they may be signing off on the details thus far. Project has progressed significantly, such that investor is prepared to sign off on the details of their proposed Australian investment. Investment may have already taken place and they may be signing off on the details thus far. Target high yield reinvestment companies, or assist investors seeking help expansion pans. Work with States & Territories on delivery. Target high yield reinvestment companies, or assist investors seeking help expansion pans. Work with States & Territories on delivery. 2.Prospect 3.Lead 4.Success 5.Aftercare 1.Enquiry

8 Front-desk staff are trained to respond to incoming calls by: Understanding Austrade services across Trade and Investment Knowing where is the most appropriate area to refer enquiries to Business Development staff are trained to: Proactively target prospective investors Qualify an investor’s capability and commitment to investing, by asking: 1.About the investor; 2.About their Australian business plans; and 3.About their information requirements. Project support staff are trained to: Provide timely information that meets investor’s requirements Develop supporting capability material Create unique value propositions that differentiate Australia Co-ordinate site visits and other State Government involvement Handling incoming enquiries

9 Protocols for Management of FDI with State Governments Minimum notice period for Site Visit support Visit details sent onshore for support by Visits and Industry Team Visit details sent onshore for support by Visits and Industry Team The Visits Team contacts State Government investment contacts Debrief and follow up The Visits Team coordinates site visit programme Site Visit Offshore qualification and referral to Investment Specialist Offshore qualification and referral to Investment Specialist Lead sent onshore for further support by Industry Team Lead sent onshore for further support by Industry Team State Governments advise their offshore network of projects State Governments advise their offshore network of projects Information provided to Investment Specialist by Industry Team Information provided to Investment Specialist by Industry Team Response to investor & ongoing project management Response to investor & ongoing project management Industry Team engages with State Government Industry Team engages with State Government Investment ProjectsSite Visits

10 Coordination Mechanisms Protocols Commonwealth/State guidelines, lead and site visit protocols, MOUs DFAT, NSW, China, Korea, Japan Committees Commonwealth/State: MCIT, NIAB Commonwealth/State/industry: CMAB, CoMICTA Training courses and workshops Winning Investment for Australia, industry sectoral workshops Reporting and databases Monthly reports, successes, RMS

11 Website as broader promotional tool… Industry capability RSS feeds of investment stories Case studies Data and charts Multimedia content (podcasts, videos, presentations) But also as a lead generation tool Provides basic investment information (visas, taxation, licenses etc.) Funnels more detailed investment enquiries to the right people Provides access point to our offshore network Advertises events and manages registrations Website: austrade.gov.au

12 Industry Capability Reports Aimed at providing more flexible, more responsive system Provide standard info up front, through Industry Capability Reports Use FIL system for follow-up questions, more detail or non-standard info Maintain principle of open info sharing and coordinated responses to clients States/Territories have input into preparation of ICRs, and can use them for own purposes

13 Foreign Investment Lead (FIL) system Austrade Overseas post Austrade Industry team Austrade Industry team Austrade Overseas post Investor Inquiry FIL Sent to all States States decide whether to respond State responses Consolidated response Final response

14 Relationship Management System (RMS) RMS tools include: Organisation Document Libraries to upload and store client, customer and investor documents Outlook Integration to capture communications Advanced Find for customising and generating reports Lists to assist in the organisation of information RMS is a relationship management tool that enables Austraders to build effective relationships with: Clients; Customers; Investors; Service providers; and Allies

Thank you Peter Collens National Investment Manager T: