Leadership for Leadership for Economic DevelopmentEconomic Development

A Primer for Policy Makers and Community Leaders

Economic Development Economic Development Strategies (a partial list!)Strategies (a partial list!)

Recruit New BusinessHelp Local Companies ExpandHelp Companies Facing ChallengesHelp Support New Business CreationInternational Trade DevelopmentPromote Tourism and ConventionsDevelop Property and InfrastructureDowntown RevitalizationWorkforce training/developmentWork to resolve business climate issues

(advocacy): taxation, regulation, etc.Research/Information Clearinghouse

As the need or popularity for economic development grows… this list of activities grows as well. Don’t be surprised to see issues like housing & social services get on this list

Economic Development: Why All the Hoopla!?

• Create Jobs• Raise Incomes• Raise Tax Base• Help Local Industries• Stabilize the Economy• Avoid Obsolescence• Develop Resources• Revitalize Community

Lots of nonprofits and other organizations are using “return on investment” metrics. As a result we are no longer unique and the competition for funds is stiff.

New Priorities New Priorities

1970 - 2000 Ensure strong

transportation and utility infrastructure

Offer low cost labor Assemble constituent

groups to finance industrial parks

Attract large businesses with large manufacturing facilities

Now: Ensure strong technology

infrastructure: telecomm, incubators, networks, etc…

Offer highly skilled workforce Build collaborations to

leverage human capital and innovation centers

Encourage entrepreneurship and small start-ups

Always Be Learning…Bank on ChangeAlways Be Learning…Bank on Change

The industrial recruitment

paradigm is dead!

Sitting On Governing Boards Sitting On Governing Boards & Committees& Committees

Board Responsibilities:• Financial Oversight• Strategic Planning• Raising Funds• Developing Policy• Community Relations• Monitoring and Evaluation• Hiring/firing Executive Director• Board Development• Providing Counsel/Assistance

Remember Boards Sustain An Organization – Staff Comes and Goes

Are you helping sustain the Board and the organization?

Tools for Effective Organizations Tools for Effective Organizations (codewords for Leadership!)(codewords for Leadership!)

Time Management: – Clearly understand what is time sensitive, what are the top

priorities, and stay focusedMaster the ability to work with groups and

committees:– Be great facilitators– Empower your peers and participants– Make it worthwhile… be objective oriented and do not meet for

the sake of meetingRun effective meetings:

– Did I tell you to be prepared?!?! – Have an agenda– Send important materials out in advance!– Get input from everyone

Manage Change – don’t become a roadblock!

You would be surprised how many organizations don’t do this… and the amount of trouble it can cause

Enron & the New World of Enron & the New World of AccountabilityAccountability

• Congress passed the Sarbanes-Oxley Act to make Corporations more transparent and accountable.– This act applies to nonprofits

• All nonprofits should now have:– Document retention policies– Whistleblower protection policies– Conflict of interest policies (signed annually!)

• For economic development boards you should also have a “confidentiality” policy

A confidentiality policy can work side by side with public disclosure requirements… if you are careful!

Accounting and FinanceAccounting and Finance

• Choose a financial report that is easy to develop and convey:– Suggestion: Use a “Cashflow Statement”

• Establish internal controls to prevent fraud!– Review bank statements– Have the Board approve financial statements for every month– Two signatures on checks– Establish fiscal policies– Review and approve audits or financial reviews– Review Executive Compensation (the law)– Review and approve IRS form 990 (the law)

Does your organization

take these (or other ) steps

to prevent fraud?

Staffing and PersonnelStaffing and Personnel

• Often the most important component affecting success of the organization

• Create a fair and formal employment “system”– Job Descriptions– Organizational Chart– Personnel Policies– Evaluations

• Hiring the right director – what to look for…• Getting new staffers off to a good start

– Developing goals and sharing expectations

Defining expectations for new hires (including management) is as

important as finding the right person!

Working in 2012Working in 2012

• Recognize that there are several generations in the workforce right now:– Traditional, Baby boomers, Generation Xers, Millenials– Each of these generations have a different attitude

towards work

• Develop generational awareness– How to recruit, motivate, train, retain and supervise

changes from generation to generation

Anyone who employs a multigenerational

workforce understands the challenges first

hand

When Generations Collide

Traditional Boomers Xers Millenials

Goals Build Legacy Build Stellar Career

Build Portable Career

Build Parallel Career

Rewards Job Well Done Money, Title, Office

Freedom to Do Work with Meaning

Training Learn Hard Way

Train ‘em & they leave

Training an incentive to stay

Continuous Learning

Feedback No News Good News

Annual Review and data

Will ask when wanted

Instant Feedback

Changing Jobs Change a stigma

Change puts you behind

Change necessary

Change a daily routine

Life Balance Support in shifting and balancing

Help me find meaning

Give me balance now Not at 65

Flexibility to balance all activities

Retirement Reward Retool Renew Recycle

Principles for Successful Principles for Successful ED OrganizationsED Organizations

• Sharkproof Principles For Success (or Survival)

• Based on over 100+ years of combined practitioner experience

• Focused on:• Partnerships• Communication/Public Relations• Board Management• Organization• Program/Personnel

Working with PartnersWorking with Partners

County Chambers

Economic Dev. Councils

Business Community

SBDC

Utilities

Port Districts

Revolving and Micro-Loan Funds

Government (Federal, State, Cities and Tribal)

Economic Development Districts

Community Action Programs

Visitors & Convention Bureau

High Schools

Community Colleges

Vocational Schools

Property Development Recruiting

Access to Capital Technical Assistance

Business Development Coalition Building

Funding Business Climate

Community Development

Tourism

Workforce Development

Business Climate Quality of Life

Business Development Coalition Building

Infrastructure Support Development

No one has a No one has a franchise on franchise on economic economic development!!development!!

PartnershipPartnership

Get Your Partners Involved!! Resolve or Avoid “Turf” Issues with

Partners!! ED is a Team Sport -- Spread the Credit Spread the Credit

around!around!

The more you give the credit away… the

more it will come full circle back to you!

Keep Your Stakeholders Informed!! Your ED program should tangibly address

community issues Economic development organizations MUSTMUST

engage in public relations and community education

Communications/Communications/Public RelationsPublic Relations

Ask Yourself What does your organization do to stay in touch with your

key stakeholders, members & investors? Can you and your fellow board members cite your local

EDC’s top priorities and recent accomplishments? What “tools” are available to support public and investor

relations?

Nurture and Grow a Strong Board of Directors

Clearly Define the Board’s Responsibilities Keep Board members Informed and

Educated Keep Your Board Focused and Involved

Board Board ManagementManagement

Ask Yourself

How do you get new Board members plugged in and up to speed?

Strong Organizations are the Function of Boards, Stakeholders & Staff

Organizations Depend on Quality Leadership

Organizations Are Dynamic so Stay Ahead of the Curve

Healthy Organizations Depend on a Solid Administrative Foundation

OrganizationOrganization

Once the Board Adopts a Program & Budget - Focus on Execution

Build Evaluation Activities Into Your Program

Provide Clear Direction For Management Invest in Training for Staff Invest in Technology for Staff Effective Communication is Key to Staff

and the Organization

Program/PersonnelProgram/Personnel

One Last ThingOne Last Thing!

• Economic development strategies should ideally be tailored to your region and based on the unique assets you have that can support business growth and wealth creation– Be careful about “cookie cutter” approaches;– Be careful about comparing your community to others;

• Be patient!

Remember the best home run hitters will tell you they don’t focus on hitting it out of the park. If you look to “connect” instead… good things usually happen. You can score a lot of runs with singles!