The State and Regional The State and Regional Development StrategyDevelopment Strategy

Regional Strategic | Plans

Eric Rinehart, Economic Development Solutions, inc.

A project of the Illinois Department of Commerce & Community Affairs

In partnership with Center for Governmental Studies, Northern Illinois University

#20-OSC#20-OSC

October, 2002

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Presentation Outcomes

Describe: University/State Agency Partnership Describe: Regional Strategic Planning

– Positive Analysis [System Oriented Modeling]– Normative Analysis [Goal/Issue Oriented

Planning]– Instrumental Analysis [Concurrent Decision-Making]

– Summative Evaluation [Qualitative/Quantitative]

Describe: 10 Innovative Planning Techniques– Valuable but seldom used planning tools

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Traditional ApproachTraditional Approach Strategic Planning for Companies

Analysis PEST SWOT Assessment Issue Identification

Vision Set Vision(s) Goals/Objectives

Select Strategies Action Plan Assign Response

Craft Work PlanAllocate Resources

Evaluation Inputs, Processes, Outputs

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Policy Analysis ApproachPolicy Analysis Approach Strategic Planning for Communities

Positive Plan to Plan Customer Segments/ValuesEnvironmental Scan

Normative Situation Analysis Alternative FuturesContent AnalysisPortfolio Analysis

Instrumental Strategy IdentificationFormative Evaluation/DecisionsPerformance PlanningIssue Management

Summative Input, Process, Output, Outcomes

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PLAN TO PLAN

19991999

OUR KEY GOALSOUR KEY GOALS

Focus on identifying/addressing regional issues Focus on identifying/addressing regional issues Develop a model planning process/planning documentsDevelop a model planning process/planning documentsBuild the development capacity of Illinois communitiesBuild the development capacity of Illinois communities

Required Plan Elements:Required Plan Elements:

Major ParticipantsMajor Participants Consult with local officials/organizationsConsult with local officials/organizations Work with other state entities.Work with other state entities.

Key Steps Key Steps Identify improvement characteristics Identify improvement characteristics Recommend growth goals Recommend growth goals Recommend administrative actionRecommend administrative action

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RegionsRegionsdefined bydefined by

Labor MarketsLabor Markets

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University PartnersUniversity Partners Center for Governmental Studies

- Northern Illinois University   Center for Urban Economic Development

- University of Illinois at Chicago  Institute for Public Affairs

- University of Illinois at Springfield   Ctr. for Organizational Research & Development

- Southern Illinois University at Edwardsville Office of Economic and Regional Development

- Southern Illinois University at Carbondale Illinois Institute for Rural Affairs,

- Western Illinois University

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POSITIVE ANALYSIS

Positive Analysis; What is

Regional Regional ConditionsConditions

Plan to Plan to PlanPlan

EnvironmentalEnvironmental

ScanScan

Customer Customer SegmentationSegmentation

20002000

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Customer Segmentation Customer Segmentation [Values Clarification]

Started off with Interest Groupings … Interest Groupings … – Local GovernmentsLocal Governments– Small Business Small Business – Community OrganizationsCommunity Organizations– Development OrganizationsDevelopment Organizations

…Which defined the Scope of Planning Scope of Planning– Political Arena … Public FacilitiesPolitical Arena … Public Facilities– Economic Arena … Business VitalityEconomic Arena … Business Vitality– Sociological Arena … Community ConditionsSociological Arena … Community Conditions– Institutional Arena … Marketplace InstitutionsInstitutional Arena … Marketplace Institutions

#1#1

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Environmental ScanEnvironmental Scan [The New Economy]

Competitive AdvantageCompetitive Advantage StructureStructure– Resource-Based; Capital-Based; Technology-Based

Trends [in Economic Trends [in Economic Behaviors]Behaviors] [Paden 72]– Supply, Demand, Production, Adjustment

Current Economic Current Economic PerformancePerformance – Industrial & Employment Dynamics

Substitute for PEST Analysis

#2#2

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Regional Situation AnalysisRegional Situation AnalysisOrganized/Delivered by University PartnersOrganized/Delivered by University Partners

Review of Current StrategiesReview of Current Strategies– Review of Existing Regional PlansReview of Existing Regional Plans– Review of State Agency ProgramsReview of State Agency Programs

Region Characteristics Region Characteristics – Population ProfilesPopulation Profiles– Employment ProfilesEmployment Profiles– Industrial ProfilesIndustrial Profiles

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NORMATIVE ANALYSIS

Normative Analysis: What ought to Be

Institutional Goals> Portfolio Analysis>Alternative Future NORMATIVE ANALYSIS [ALTERNATIVE FUTURES]

20002000

Situation AnalysisSituation Analysis Organized by North. Ill Univ./Delivered by Organized by North. Ill Univ./Delivered by

UniversitiesUniversities

Community Assets [Strengths and Weaknesses] Public Infrastructure Market Foundations

Programmatic Needs [Opportunities/Challenges] Community Betterment Business Development Workforce Development

SSWOCWOC substitute for substitute forInternal External AnalysisInternal External Analysis

#3#3

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Survey QuestionnaireSurvey Questionnaire Organized/Delivered by University Organized/Delivered by University

PartnersPartners

NIU designed Questionnaire Mailings to over 29,000 individuals

Business Owners Chambers Development Organizations Mayors

Survey Questions Goals and Measures of Success Perceptions of Strengths/Challenges Program/Issue Areas Requiring Action

Component Area SummitsComponent Area Summits Organized/Delivered by University Organized/Delivered by University

PartnersPartners

11stst Step = Vision-Setting [a.m.] Step = Vision-Setting [a.m.] New Economy [Context]New Economy [Context] Small Group Discussion Small Group Discussion Plenary ConsensusPlenary Consensus

22ndnd Step = Identification of Priorities [p.m.] Step = Identification of Priorities [p.m.] Stakeholder Survey Results [Context]Stakeholder Survey Results [Context] Small Group Discussion Small Group Discussion Plenary Group Voting Plenary Group Voting

Alternative Futures Approach Alternative Futures Approach vs Extrapolation of Current Trendsvs Extrapolation of Current Trends

or Classical ‘Problem’ or Classical ‘Problem’ IdentificationIdentification

#4#4

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Content Analysis Content Analysis [Thematic Mapping][Thematic Mapping]

Grouped 90+ Regional Priorities; because:– Wanted to quantify common patterns of conceptsWanted to quantify common patterns of concepts– Aggregate list of issues too large and complex to graspAggregate list of issues too large and complex to grasp

Resulted in 40 Common Objectives, for example:– Invest in and fund advanced broadband & wirelessInvest in and fund advanced broadband & wireless– Invest in that prepare workers for new economy jobs.Invest in that prepare workers for new economy jobs.– Empower organizations to implement best practicesEmpower organizations to implement best practices

#5#5

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Portfolio AnalysisPortfolio Analysis [Affinity Diagramming]Affinity Diagramming]

4 Customer Segments:4 Customer Segments: 4 Groups each 4 Groups each with distinct Scopes of Interest …with distinct Scopes of Interest …

Summit Participants: Summit Participants: 40 Priorities40 Priorities

(Strategic Objectives) from the 19 sessions(Strategic Objectives) from the 19 sessions

Strategic GoalsStrategic GoalsExecutives:Executives: Governor & Director Governor & Director

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Public Facilities Governance Taxes/Regulations Infrastructure Public Services

Market Institutions Capital [Financial] Access Human Capital Technology Resource

Community Betterment Growth Management Area Redevelopment Employment Opportunity Self Sufficiency

Enterprise Growth Capital Investment Trade/Export Promotion Production Operations Entrepreneurial Starts

Institutional GoalsInstitutional Goals[A Strategic Development Framework][A Strategic Development Framework]

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State/Regional Report Organized by Department / Prepared by Organized by Department / Prepared by

UniversitiesUniversities

IntroductionIntroduction The New EconomyThe New Economy

Competitive Structure, Trends, Performance Implications for GovernmentImplications for Government

Foundations and Functions of Development Development Strategies in a New EconomyDevelopment Strategies in a New Economy

15 Strategic Goals/40 Strategic Objectives Area [Regional] IssuesArea [Regional] Issues

Survey Responses on Major Themes

http://www.commerce.state.il.us/bus/research/strategic_planning/5yearplan.html

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INSTRUMENTAL ANALYSISInstrumental Analysis: How to Get There

Formative EvaluationFormative Evaluation[Risk Assessment][Risk Assessment]

Suitability Feasibility Acceptability

Performance PlanningPerformance Planning[Resource Allocation][Resource Allocation]

Technical Assistance Benefactor Advocacy

Strategies IdentifiedStrategies Identified[Problem Solving] [Problem Solving]

Legislative Programmatic Administrative

Issue Management Issue Management [Tools/Techniques][Tools/Techniques]

Strategy Assignment Policy Formulation Action Planning

20012001

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Strategy IdentificationStrategy Identification Organized/Delivered by University PartnersOrganized/Delivered by University Partners

Review of Existing Plans [Some Locations] Consult Key Stakeholders [Some Locations] Practitioner Brainstorming Session

– Morning: Theme Based Small Group Session – Afternoon: Discussion and Prioritization

Field Visits/Field Observations [Some Locations] Web-Based Survey Tool [Some Locations]

Group Problem Solving Sessions; Spring Group Problem Solving Sessions; Spring 20012001

#7#7

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Brainstorming SessionsBrainstorming Sessions Organized/Delivered by University PartnersOrganized/Delivered by University Partners

Plenary Session: Review of Efforts to Date Plenary Session: Review of Efforts to Date Regional Priorities/State Objectives from ‘00Regional Priorities/State Objectives from ‘00

Morning: Small Group DiscussionMorning: Small Group Discussion Brainstorming Strategic Solutions/Project IdeasBrainstorming Strategic Solutions/Project Ideas

Afternoon: Presentation and PrioritizationAfternoon: Presentation and Prioritization Set Priorities for Regional ImplementationSet Priorities for Regional Implementation

1145 participants donated approximately 2.5 years of time1145 participants donated approximately 2.5 years of time

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Development OpportunitiesDevelopment OpportunitiesWorking DocumentWorking Document

Year 2: StatewideYear 2: Statewide 15 Strategic Goals15 Strategic Goals 40 Strategic Objectives40 Strategic Objectives

Year 3: RegionalYear 3: Regional 425 Suggestions425 Suggestions ## Courses of Action ## Courses of Action

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Formative EvaluationFormative EvaluationRisk Assessment ToolRisk Assessment Tool

Acceptable - “Does the organization have a will to act”, considering organizational preferences, excess capacity, and its expertise/capabilities. [Champion]

Feasible – “Is the organizational capable of acting”, considering the competitive environment, operations needs/ requirements, and ability to secure resources required. [Funds]

Suitable - “Is it reasonable to act?” i.e. is not too broad or complex to undertake; has a reasonable time horizon; is of a scale the organization can undertake. [Impact]

#8#8

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Performance PlanningPerformance Planning Resources Allocation ToolResources Allocation Tool

Organizational ChampionOrganizational Champion– Regional OrganizationRegional Organization - University Partner- University Partner– State/Federal AgenciesState/Federal Agencies - Department Team - Department Team

Nature of Efforts RequiredNature of Efforts Required– Advocacy/Brokering Advocacy/Brokering - Research/Exploration - Research/Exploration – Facilitation/AdvisoryFacilitation/Advisory - Trng/Tech Assistance- Trng/Tech Assistance– Grants Packaging Grants Packaging - Champion/Guardian- Champion/Guardian

Resources, Funds RequiredResources, Funds Required– Time and Effort Time and Effort - Volunteers/Pro-Bono- Volunteers/Pro-Bono– External Grants External Grants - New Funds/Tax Expenditure- New Funds/Tax Expenditure

#9#9

Strategies MatrixStrategies Matrix Organized by Department / Prepared by Organized by Department / Prepared by

UniversitiesUniversitiesT

ech Handbook

Tech H

andbookE

duc. Training

Educ. T

raining

Research

Research

Org. A

dvisor O

rg. Advisor

Advocate

Advocate

Dept. T

eamD

ept. Team

Univer. P

artnerU

niver. Partner

External A

gentE

xternal Agent

Regional O

rgR

egional Org

Grant F

undsG

rant Funds

Contract F

undsC

ontract Funds

Statew

ide Impact

Statew

ide Impact

Local/R

egionalL

ocal/Regional

Acceptability

Acceptability

Feasibility

Feasibility

Suitability

Suitability

Risk Impact Funds Champion EffortRisk Impact Funds Champion Effort

Formative Evaluation/Performance Planning

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Regional Reports Regional Reports Organized by Department / Prepared by Organized by Department / Prepared by

UniversitiesUniversities

11stst Report: Executive Summary Report: Executive Summary Brief 4 Page OverviewBrief 4 Page Overview

22ndnd Report: Regional Development Report: Regional Development Development Framework Development Framework The Region The Region Regional Visions/Priorities Regional Visions/Priorities [From 1[From 1stst Year] Year] Development Opportunities Development Opportunities [From 2[From 2ndnd Year] Year] Next Steps: Issue ManagementNext Steps: Issue Management

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ISSUE MANAGEMENTISSUE MANAGEMENT[Project Implementation][Project Implementation]

Set ObjectivesSet Objectives Raise FundsRaise Funds Locate StaffLocate Staff Deliver Product/ServiceDeliver Product/Service Evaluate EffortsEvaluate Efforts

Starting PointStarting PointCourses of ActionCourses of Action

30+ Projects30+ Projects 2-3 in Ea. Region2-3 in Ea. Region 6-8 by Dept. 6-8 by Dept.

20022002

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Initial Viewpoint Initial Viewpoint [Implementation Skills/Techniques]

#10#10

Training/Training/Tech. HandbooksTech. Handbooks

Grant Grant PackagingPackaging

Advocate/Advocate/BrokerBroker

OrganizationOrganizationFacilitationFacilitation

Research/Research/ExplorationExploration

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Current Viewpoint Current Viewpoint [Continuous Improvement Process]

FOCUSo Increase the understanding of customer needs Increase the understanding of customer needs

(i.e. process improvement opportunities)(i.e. process improvement opportunities)o Develop a body of knowledge on key subjectsDevelop a body of knowledge on key subjects

(inventory/compile development information)(inventory/compile development information) PLANo Policy analysis (of the cause and effect relation Policy analysis (of the cause and effect relation

among development policy alternatives)among development policy alternatives)o Document innovative practices and techniquesDocument innovative practices and techniques

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Current Viewpoint Current Viewpoint [Continuous Improvement Process]

IMPLEMENT A SOLUTIONo Direct or convert resources to implementationDirect or convert resources to implementationo Make adjustments (technical assistance)Make adjustments (technical assistance) CONFIRMATION/EVALAUTIONo Evaluate program successes STANDARDIZE ACTIONSo Promote professional development initiativeso Transfer & shape institutional structure

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SUMMATIVE EVALUATIONHow Do We Know We’ve Arrived?How Do We Know We’ve Arrived?

Framework for Development

Quantitative

Measures Products

QualitativeMeasures

Processes

20032003

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Specific MeasuresSpecific MeasuresInputs:Inputs: Participatory: 2,100 participants; 11,000 hours

Process/Practices:Process/Practices: Community Oriented Planning Methodology 10 + Planning Innovations Adapted

Outputs:Outputs: Integrated State Strategy [and Reports] 2- Projects Completed; 40+ Projects Underway

Outcomes:Outcomes: New Development Framework

Participatory Planning[Stakeholder Inputs]

Stakeholder Planning– Defining the Scope– Survey Questionnaire– Priority Setting Summit– Brainstorm Sessions– Performance Planning

Coordination– Vertical– Horizontal

Communications– Yr 1: Plan to Plan– Yr 2: Goals/Obj. Report– Yr 3: Regional Strategies

Freeman, 1984

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Strategic Planning for CommunitiesStrategic Planning for Communities

> Goals Plan> Portfolio Analysis

Future Priorities

NORMATIVE ANALYSIS [ALTERNATIVE FUTURES]

> Actions Plan> Gap Analysis Brainstorm Options

>Work Plans Allocate Resources

Assign to Parties >

INSTRUMENTAL ANALYSIS [ISSUE MANAGEMENT]

Analyze ImpactReview Performance >

Monitor >

SUMMATIVE EVALUATION

Economic ModelCommunity SW-OC>

Clarify Values >

POSITIVE ANALYSIS

Process

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Innovations Tested and ProvenInnovations Tested and Proven Values Clarification: Values Clarification: To Define the Scope of EffortTo Define the Scope of Effort Environmental Scan: Environmental Scan: Impact of the New EconomyImpact of the New Economy Situation Analysis:Situation Analysis: Survey Community SW-OC;Survey Community SW-OC; Alternative Futures: Alternative Futures: Visions & PrioritiesVisions & Priorities Content Analysis: Content Analysis: Aggregated Common PrioritiesAggregated Common Priorities Portfolio Analysis:Portfolio Analysis: Framework of DevelopmentFramework of Development Strategy Identification: Strategy Identification: Participatory ProcessParticipatory Process Formative Evaluation: Formative Evaluation: Decision MakingDecision Making Performance Planning: Performance Planning: Plan Meets NeedPlan Meets Need Issue Management:Issue Management: Project Management Project Management

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Public Facilities Governance Taxes/Regulations Infrastructure Public Services

Market Institutions Capital [Financial] Access Human Capital Technology Resource

Community Betterment Growth Management Area Redevelopment Employment Opportunity Self Sufficiency

Enterprise Growth Capital Investment Trade/Export Promotion Production Operations Entrepreneurial Starts

Development FrameworkDevelopment Framework[for State and Regional Agencies][for State and Regional Agencies]

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For more information

John L. Lewis, Northern Illinois UniversityJlewis@niu.edu

Michael T. Peddle, Northern Illinois UniversityMpeddle@niu.edu

Eric L. Rinehart, Commerce/Community AffairsRinehart@ameritech.net

http://www.commerce.state.il.us/bus/research/strategic_planning/5yearplan.html

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Regional Strategic |Plans

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