1. 1 For the Development Organization Aligning Strategic | Plans Eric Rinehart Economic Development Solutions, inc. E-D-Solutions.com

2. 2 Success Planning Model The Overarching Structure of the Plan Documents Organizational Strategies Critical Success Factors Success Metrics Business Unit Strategic Plan Explicit Strategies Implementation Plans Program Operational Plans Time and Energy Key Results Institutional Strategy Strategic Vision Strategic Goals adapted from Richard Sessions Integrating External Benchmarking Into Your Strategic Planning Process.

3. 3 Blue Print An Organizational Planning Document Vision and Mission Vision and Mission Major Forces Major Forces: Growth Assumptions; Environment Institutional Goals: Institutional Goals: Goals; Objectives; Priorities Philosophy Philosophy: World Class Core Competencies: Core Competencies: Supporting Elements Assessments: Measures of Success

4. 4 … Compared with Typical Outline Reference Overall Singular "Mission" or Desired Result Take Stock Outside and Inside the System (PEST) Analyze the Situation (SWOT) Establish Goals that build on strengths and wards off threats. Establish Strategies to Reach Goals Establish Objectives Along the Way to Achieving Goals Associate Responsibilities and Time Lines With Objectives Write and Communicate a Plan Document

5. 5 Customers, Products, Benefits, etc. The organization needs to determine its mission. Why does it exist? What is it trying - in general terms - to accomplish? The mission statement provides the overall direction for the agency in developing its goals and objectives. organization’s mission

6. 6 Identify Stakeholders and Values Stakeholders l Public at Large l Public at Large Families l Targeted Areas/Groups l Targeted Areas/Groups Welfare of Community l Business Sector l Business Sector Commerce/Industry l Market Institutions l Market Institutions Market Place Core Values l Economic Indifference l Economic Indifference - Laissez Faire l Distribution Failures l Distribution Failures - Inequities in Distribution l Econ. Performance l Econ. Performance - Level of Production l Structural Limits l Structural Limits - Improved Organizations

7. 7 Identify and Segment …CUSTOMERSPRODUCTSLOCATIONSRESULTS External Customers Segments [1st Focus] Current Mandates, Programs, Allocations Local and Regional Availability Intermediate Outcomes: Jobs and Investment Internal Customers [2nd Focus] Requested Programs and Services Self-Service, Case Work, Group Service Final Outcomes: Growth/ Advantage

8. 8.. then Combine into a MissionCUSTOMERSPRODUCTSLOCATIONSRESULTS Public at Large Public Goods City/County Quality of Life Area/Group C’mnty Srvc NeighborhoodEquity/Stability Bus. Sector Business Srvc Market Areas Growth InstitutionsCapacity BldgRegion Area Advantage

9. 9 Influences, Foundations, Theories The economy is a complex, inter- dependent and adaptive system which we can look describe at various levels of analysis detail major influences component foundations regional growth theories assumptions about growth

10. 10 Influences on a Regions’ Economy Profit-Making Interest Business Sector Social Rooted Interest Area/Group Condition Public Interests Government Plural Interests Market Institutions Behaviors-Based Framework

11. 11 Public Goods Public Goods [Gov’ment = Public Interest] Governance/Taxes administration/budgeting Governance/Taxes administration/budgeting Regulations protection/ordinances Regulations protection/ordinances Infrastructure roads/utilities, etc Infrastructure roads/utilities, etc Public Services education; amenities Public Services education; amenities Foundations of Economies Factors of Production Factors of Production [Markets = Plural Interests] Material Resources natural, technology Material Resources natural, technology Capital capital equip; financing Capital capital equip; financing Human Resources labor, technicians, admin Human Resources labor, technicians, admin Organization business climate Organization business climate This Endowment is Finite but not Fixed

12. 12 Community Betterment Community Betterment [Groups = Social Interests] Fiscal Stability positioning Fiscal Stability positioning Area Redevelopment growth management Area Redevelopment growth management Civic Capacity organizations; volunteerism Civic Capacity organizations; volunteerism Economic Opportunity self sufficiency, housing Economic Opportunity self sufficiency, housing Functions of Development Enterprise Growth Enterprise Growth [Business = Profit Interests] Capital Investment private owners of production Capital Investment private owners of production Trade/Export Promotion market based purchasing Trade/Export Promotion market based purchasing Production Operations price based resource system Production Operations price based resource system Entrepreneurship competitive entry and exit Entrepreneurship competitive entry and exit

13. 13 Structure, Trends, Performance, Identify the key factors and trends important for the organization. How will things outside the organization effect those things that the organization wants to accomplish? environmental analysis

14. 14 Competitive Advantage Structure Overall Economic Model Resource Based Economy agriculture and mining Capital Intensive Economy durable and non-durable goods manufacturing and producer services Information & Innovation Based Economy telecommunications and software Competitive Advantage; Ricardo, 1815 Substitute for Industry Composition Data

15. 15 Trends Reflect Goals of Any Economy Supply: Mobility of Resources Demand: Global Competition Production: Information Products Adjustment: Entrepreneur/Technology Substitute for PEST Analysis Paden, 1972

16. 16 Current Performance Based on Measures of Success Industrial Vitality Mfg output had rebounded; Exports are rising New ventures & expansions create most jobs Employment Vitality Labor force will grow slower than job growth High skill occupations as fastest growth segment Substitute for Regional Composition Data

17. 17 Foundations and Functions At this point institutional goals and objectives can be developed that move the organization in the preferred direction, doing so within the context which it has to operate institutional goals

18. 18 Commerce & Community Affairs Leadership: Leadership: Increase the capabilities of practitioners Infrastructure: Infrastructure: Physical social infrastructure improvement Workforce: Workforce: Develop a skilled and adaptive workforce Capital: Capital: Access to capital for business growth/expansion Technology Technology: Provide access to modern business practices Trade Markets Trade Markets: Linkages between customers/ markets Industry Investment: Industry Investment: Retention, expansion and attraction

19. 19 Albuquerque New Mexico efficient service # 1. Provide high quality and efficient service to the public public safety # 2. Improve public safety services. infrastructure # 3. Balance new construction & maintenance of infrastructure economic vitality # 4. Adopt & implement an economic vitality strategy. culture # 5. Foster the expression & appreciation of the culture. stable neighborhoods # 6. Maintain stable neighborhoods; provide affordable housing sustainable development # 7. Achieve sustainable development, balanced development & redevelopment, including infill development. environmental protection #8. Increase environmental protection & resource conservation

20. 20 Public Facilities Governance Taxes/Regulations Infrastructure Social Utilities Market Institutions Competitive Climate Capital Access Human Capital Material Resource Mobility Community Betterment Growth Management Area Redevelopment Employment Opportunity Self Sufficiency Enterprise Growth Capital Investment Trade/Export Promotion Production Operations Entrepreneurial Starts A Typical Strategic Goals Portfolio Similar Strategic Goals because of Similar Models and Interests

21. 21 Hierarchy, Chronology, Urgency Because it is impossible to do everything that needs to be done, strategic planning implies that some organizational decisions and actions are more important than others. set goal priorities

22. 22 Simple Hierarchical Plan

23. 23 Detailed Hierarchical Plan

24. 24 Foundations MaterialResources Access to CapitalTax/Reg.Climate Physical Infrastructure Infrastructure PublicServices Human Resources Functions Recruitment and Retention and Retention Management & Modernization Entrepreneurs & Technology Trade & Tourism Practitioner’s Priorities JobCreation Job Creation & Retention Tax Base Growth

25. 25 World Class, High Performance philosophy

26. 26 Principles for Economic Development Context: Global Economy Industry Cluster Focus Vision: High Quality Job Creation Stable Tax Base Mission: Business Competitiveness Community Excellence Adapted from "Emerging Principles in Economic Development: A Benchmarking Tool", June '95. Goals/Objectives/Scope: Public Facilities Capacity Community Betterment Business Vitality Marketplace Capability Organization: Staff Regional Collaboration Partnerships Process: Comprehensive Strategy Strategic, Mission Driven Customer Orientation Measurement/Evaluation Learning

27. 27 Malcomb Baldridge Approach Visionary Leadership/Public Responsibility Strategic Planning: Focus on the Future; Management by Fact Customer Driven Excellence/Market Focus Information/Analysis: Organizational & Personal Learning Human Resource Focus: Valuing Employees & Suppliers Process Management: Agility, Manage for Innovation Business Results: Focusing on Results/Creating Value

28. 28 World Class Operations FUNCTIONPRINCIPLES Facility MissionBest of Class Products/Services Leading Edge The CustomersCustomer Oriented The BenefitsCost Justified The StaffSkilled, Motivated Competition Adaptive OperationsLean Operations Administration Flat Management Structure FacilitiesIntegrated Processes Risk Analysis Issue Management Financial Plans Minimized Expenses

29. 29 Define the kinds of work which differentiates your organization from others core competencies

30. 30 Competitive Differentiation Product: Specialization Product Quality Brand Identification vs. Low Price Leader Marketing: Distributor Push vs. Consumer Pull Channel Selection Processing: Technological Leadership Vertical Integration Low Cost Position Leveraging External Relations: Relations with Parent Co. Relation to Host Govt

31. 31 Public Agency Competencies Capacity Model (Common at State Level) Delivery System (process/partner) Improvement Customer Responsive Services (customer centered) Capacity/System Expansion Services Model (Common at State Level) Information: Information and Training Consulting: Case Work; Customized Counseling Financing: Grants and Loans

32. 32 Systems Competencies Management Functions Model Planning: Anticipating The Environment Administration: Managing for Success Delivering: Product or Service Quality Evaluating: Tracking Performance Product Life Cycle Model Invest: New Products under Development Growth: Products with Growing Importance Foundation: Products meeting customer needs Harvest: Products no longer at the leading edge

33. 33 Benchmarks and Scorecards assessments

34. 34 Internal Analysis -- SEA Resource Level [Input Objectives, Input Indicators] Inputs are the resources put into an effort Activity Levels [Activity Objectives, Activity Indicators] Activity measurements consider the methods and procedures used to carry out the program. Output Levels [Output Objectives, Product Indicators] Outputs are the direct results, i.e. the products produced from the work performed. Results Levels [Outcome Objectives, Impact Indicators] Outcomes state the benefits GAAP: Service Efforts and Accomplishments

35. 35 Balanced Scorecard Finance Perspective - Leverage - Cost Benefit - Admin Cost Customer Perspective - Customers Served - Customer Satisfaction Learning Organization - Employee Satisfaction - New Initiatives Internal Processes - Performance Metrics - Plan vs. Performance

36. 36 Conclusion Questions Comments