2008 9.17 team neo emerging leaders advisory council
TRANSCRIPT
Becoming a Team Member
Team NEO Emerging Leaders Advisory Council Meeting Kickoff Meeting
September 17, 2008
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Is Cleveland “Dying”?
• According to Forbes.com, Cleveland, Canton and Youngstown are among America’s 10 Dying Cities despite the facts…
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Cleveland Plus is ALIVE• Positive NEO GRP Growth: 30% Higher than 15 Years Ago• Growing Industries, Diversifying Economy:
– Professional, Scientific & Technical Services up 74% – Information Industry up 64% – Management of companies and enterprises up 88%
• Strong Industrial Real Estate Market: Low Vacancy Rate• More than $4 Billion in Active Investments/Projects• Regional Vitality:
– 29 Colleges/Universities:175,000 students, 26,000 degrees/yr– Largest performing arts center in US outside of NYC – Downtown Cleveland housing: 93% occupancy/10,000 units +
• Cleveland Plus Earns Top Honors: – Ranks better for Young Professionals than Orlando, Las Vegas, Miami– Top 20% of best cities for outdoors– Ranked above LA, San Fran, NYC, Minneapolis and Orlando
for Entrepreneurs– Ohio has more VC firms than any state not on the coast
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Agenda• Introductions
• Deeper Dive: Regional Economy
• Team NEO: Mission, Metrics
• Cleveland Plus Business: Our Work, Next Steps
• Advisory Council: Objectives
• Projects for Consideration
• Next Steps
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NEO Per Capita Income in Top Third of All Metro Areas
Akron
NEO
Canton-Massillon
Youngstown-Warren
Cleveland-Elyria-Mentor
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
360 Metropolitan Statistical Areas
PC
PI
NEOAtlanta
PortlandCharlotteRaleigh
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Northeast Ohio Gross Regional Product (GRP) Increasing
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Higher Skilled Employment Growing
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Growth Industries
Team NEO: Mission, Metrics, Work
One Regional Brand:
(Created by GCP,Positively Cleve CVB,
Team NEO)
Retain/Grow LargestIndustry (Manufacturing):
Grow Existing Businesses:Chambers of Commerce,Local Govt.
Attract NewBusinesses:
Attract Venture Capital for Emerging
BioMed Industry:
Launch Entrepreneurship:
Incubate future technologies:
Goal:Accelerate NEO
Economic Growth
NEO Regional Economic Development System
Funding and Leadership:Greater Cleveland Partnership,FFEF*(Other Metro Chambers in part)
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Regional Business Attraction Agent: - Northeast Ohio’s Sales Force
• Mission: Unite the Region to Attract High Growth Businesses to Northeast Ohio
• Objectives: Increase high quality targeted lead flow and execute effectively to increase NEO investment
• Strategies: – Targeted marketing leveraging Cleveland+ brand – Focused sales team sells business case by connecting
prospects to State and local resources– Institute Economic Dev System to close deals– Engage and Inform NEO Business Community as
Ambassadors, Partners
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• 15 Employees
• $3 Million Budget Funded by:– 30% Fund for our Economic Future
– 25% Cleveland Plus Marketing Alliance
– 25% Metro Chambers of Commerce/ED Orgs
– 10% Private Support
• Serve and Promote 16 County Region
• Joint Venture Metro Chambers of Commerce
• 22 Person CEO Regional Board of Trustees
Small Organization Serving Large Region
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Partners/Funders: The Greater Team
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Team NEO Metrics and Goals: 3 Year PlanIncrease Business Investment Opportunities and Annual Payroll for Continuous Regional
Benefit
Objectives 2007 Goal
2007 Actual
2008 Goal 2009 Goal
New Qualified Leads 36 95 100* 100
Leads to Short List 9 37 13 20
New Payroll Added $25 M $46M $50M $70M
*5% will be Minority-Owned Businesses
Cleveland Plus Business:Our Work
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What is Cleveland Plus?
Cleveland Plus = Inclusive, Excellence, PositiveCovering 16 Counties
6000 Square Miles to PromoteBusiness + Travel + Talent Recruitment
One Cohesive Marketing Campaign
One Positive Attitude
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The Case for Regional Marketing
• Competition among regions intensified - effective marketing a key differentiator (St. Louis, Nashville, Kansas City, Indianapolis)
• NEO out-spent and out-hustled on marketing by other regions that do not have the assets we have
• Our lack of competitive marketing was an impediment to the economic health and development of the region,
because it:o Hinders recruitment and retention at all levelso Negatively affects decisions about investment,
expansion, and relocationo Dampens tourism
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• Umbrella brand: identity and messaging– Research based, regionally inclusive– Developed tools for local use: chambers, EDOs,
CVBs, attractions, businesses
• Business recruitment (Team NEO)
• National “earned media” story placement
• Talent attraction and retention
• In-region fact-based campaign
• Visitors/Convention advertising
Marketing Campaign TacticsIncrease Awareness and Advance Perception of Region
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• Aultman Hospital
• AultCare
• Cleveland Clinic
• Cleveland Foundation
• Cleveland Mus of Art
• Cleveland Orchestra
• Cleveland Playhouse
• Charter One
• Developers Diversified
• Eaton Corporation
• Ernst & Young
• First Merit
• Parker Hannifin
• Playhouse Square
• Positively Cleveland
• RPM International
• Sherwin Williams
• Squire Sanders & Dempsey
• Steris
• Team NEO
• Timken
• The Cleveland Foundation
• University Hospitals
• Westfield Insurance
Cleveland+ Support: $2.5 Million/yr. Budget
• First Energy
• Forest City Enterprises
• GAR Foundation
• George Gund Foundation
• Grtr Cleveland Partnership
• KeyCorp
• Lubrizol
• Medical Mutual of Ohio
• Mercy Medical Center
• National City Corporation
• Ohio Bus Dev Coalition
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What is Cleveland Plus Business?
Cleveland Plus Business Northeast Ohio’s Business Climate and Opportunity
Targeted New Business Recruitment Effort16 Counties Collaborating, Earning Equal Opportunity
6000 Square Miles to PromoteOne Cohesive External Marketing Campaign
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Prospecting Lead Generation Lead Execution
Attend target-rich events
Targeted brand-building efforts
Invest in national trade media
Invest in PR – in and out of the region
Proactively contact individual companies that are identified
By Industry By “Trigger Event” at Company Through Leveraging an Existing
Relationship
Market the region to site selectors based on benefits through
Industry Events Location Trips Fam Events
Leverage in-region marketing campaigns and events to cultivate referral sources
1.Team NEO qualifies the Lead Entity commits resources
–FTE or consultant Timeline
–18-36 months Revenues ≥$10M Capital Investment ≥ $M Jobs ≥ 20
2.Team NEO Assesses NEO’s alignment with Lead Qualify NEO in eyes of site selector
–Qualify and Assemble sites–Assemble data of regional assets such as work force and
logistics
Lead Creates a Short List
3.Team NEO Facilitate Site Visits
Lead Selects Site
Metrics
Number of New Qualified Lead
Number of qualified leads that result on short list Leads' contribution to new payroll in NEO
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Business Attraction Process
Lead Management Process
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Generate Impressions
Sales: NEO Region Economic Development System
CloseDeal
# qualified leads # short list $Payroll
Metrics
Qualify Leads
Qualify NEO
Negotiate Deal
Increasing Local Role
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Direct Attraction
Increases Leads in Growth Areas: Improves Close Potential
Support Regional Effort
-Collateral, Web, PR
-Site Visits, Events
-Research, Creative
Core Marketing Needs
Site Consultant Targeted Marketing
Full Year:
-6 Mkt Visits
-2 Big FAM, 6 Mini
-Core SS Industry Events
Key Industry/Market Infusion
-Key Industry Collateral
-Partner Event Support
Cleveland+ Business Tiered Marketing Strategy Increases Qualified Leads, Opportunity
Highly Targeted IndustryAttraction
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Core Attraction Marketing: Support ED System
Direct Marketing Collateral for Regional Use
Trade Show Booth, Event Presence
“Do the Math” Video Tells Story
Clevelandplusbusiness.com Designed for Site Selection
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Core Marketing Needs: Engaging Community
•Annual State of the Region Meeting: (April)•150+ regional C-level executives and civic leaders discuss regional economy with major urban mayors
•Economic Development Impact Awards: (June)•Attracts 350+ NEO community leaders to recognize the best achievements in economic development – those adding jobs and adding positive economic growth.
•Economic Outlook Conferences (November)•Traveling conference to share economic update/outlook with 300+ regional professionals in 3 areas of NEO
•Regional Economic Reviews:•Only source of up-to-date economic information for the entire 16-county region; covered by all regional media, distributed to 10,000 professionals nationally quarterly
•Monthly e-newsletter: reporting regional economic development news to 3000+ business and community professionals•Advisory Councils: Senior Leaders, Emerging Leaders, Marketing, Real Estate
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Site Selectors Offer Low Hanging Fruit
Company Interested in sites for expansion or relocation
Company with no interest in expansion or relocation
Site selector clients
? Interest level in sites is unknown to Team NEO
From the outside, it is difficult to identify companies actively researching sites
In reality, many companies have no interest in expanding or relocating to
a new site
Companies can be reached through Site Selectors. They are known to be
interested
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Set Of Companies That Could Potentially Be A Fit For NEO
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Company Operates at Current Site
Company Researches Potential Sites Through Site Selector
Company Researches Potential Sites Internally
Company Creates a Short
List
Company Selects a Site
? Company Operates at Current Site
Company Researches Potential Sites Through Site Selector
Company Researches Potential Sites Internally
Company Creates a Short
List
Company Selects a Site
? Company Operates at Current Site
Company Researches Potential Sites Through Site Selector
Company Researches Potential Sites Internally
Company Creates a Short
List
Company Selects a Site
?
Site Selector Conducts On-Going Research
Site Selector begins working with company
Company Operates at Current Site
Company Researches Potential Sites Through Site Selector
Company Researches Potential Sites Internally
Company Creates a Short
List
Company Selects a Site
?
Company Operates at Current Site
Company Researches Potential Sites Through
Site Selector
Company Researches Potential Sites Internally
Company Creates a Short List
Company Selects a
Site
Site Selection Process
Marketing To Site Selectors Can Influence Current As Well As Future Searches
Example: Site Selection for ONE Company
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Key Market Infusion and Targeting
• Beginning Stages:– BioMedical (Cardiovascular, Imaging)
– Minority-Owned Businesses
• Future:– Advanced Energies (Wind Turbine Mfg.)
– Chemicals/Polymers
– Increased International Attention
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Results To Date: Perceptions Changing
FROM:• My perception was of a struggling rust-
belt town.
• I didn’t know anything about it, so I couldn’t describe it.
• Very industrial, blue-collar town. Major manufacturing with limited quality employment base.
• Not particularly excited about the region - primarily due to a lack of knowledge and info.
• Perceptions of high cost, union workforce, rust-belt, primarily manufacturing focus, economically challenged due to loss of legacy manufacturing.
TO:+ Progressive, tech savvy, cultural,
regional
+ Will probably lead me to come back and entice customers to the area.
+ More diverse than previously thought. More confident in selling NE Ohio.
+ Cost of living and doing business more favorable than previously perceived.
+ Northeast Ohio is in a place to support expansion!
+ Cleveland Plus has tremendous potential as a progressive region with variety of great sites and wonderful cultural arts.
+ You succeeded in positively impacting my perceptions.
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Generate Impressions
NEO Region Economic Development System
CloseDeal
Qualify Leads
Qualify NEO
Negotiate Deal
$46MNew Annual Payroll
1500 Jobs*Goal $25M
Metrics
# qualified leads # short list $Payroll
Total Regional Benefit$100 M Per Year
95 New Qualified Leads
*Goal - 30
2007
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Generate Impressions
NEO Region Economic Development System
CloseDeal
Qualify Leads
Qualify NEO
Negotiate Deal
$15.6MNew Annual Payroll
249 Jobs:$63K/yr Avg. Salary
Metrics
# qualified leads # short list $Payroll
57 New Qualified Leads
2008 YTD
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2008 WinsCompany Primary Business EmploymentGroup Travel Planning Corporate Event Planning 25M2M Imaging Imaging Components 30ViewRay Image Guided Radiation Therapy 93Glenda* Medical Device for Heart Treatment 25Clear Catheter Medical tubing 15Affymetrix Pharmaceutical reagents 61
*Client has requested that we keep company name confidential
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Business Attraction: Project Updates• Get Smart
– Global Media Monitoring company– 135 jobs & $5.0 MM payroll– University partnership with MBA and Ph.D.– Keys: Location, Talent & Costs
• Breeze– International Wind Turbine manufacturing company– 150 jobs, $5.6 MM payroll, $25MM investment– Lead generated through relationships with local
business, ED pros and ODOD – Keys: Location, Workforce, Transportation &
Logistics, State Energy Policy
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Business Attraction: Project Updates• Irish
– Steel processor, fabricator, and cutter– 100 jobs and capital investment of $30 MM – Keys: Location, workforce, logistics
• Callie– Contact center outsourcer with first US operation– 400 jobs & $6.5 MM investment– Partner generated lead– Keys: Workforce, real estate
Cleveland Plus Business:Next Steps
OBJECTIVE: Increase high quality targeted lead flow and execute effectively to increase NEO investment
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Best in Class Regional Business AttractionLead Generation
• Extensive knowledge, strong pitch on key industries, assets, issues• High national visibility of key industries, assets, Globally active• Strong working relations with site consultants, R/E professionals• High impact campaign at targeted companies• Easy, comprehensive web-based information • High visibility in the community and with other Lead Generators
Lead Execution• Ability to convene and influence “all the players”, work as a Team• Visible, trusted lead-sharing and management process• Fast, accurate response presenting the right regional assets• Effective relations with State, Counties, Cities, Chambers• Effective relations with Real Estate, Workforce providers• Engaged business/community leadership to “make the sale”• Consistent process across the region, roles clear and followed
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Team NEO’s Strategic Plan Update Is Focused On Achieving Long Term Sustainability
TheObjective
TheChallenge
Update Team NEO’s current strategy to achieve long term sustainability
Engagement Overview: Objectives
Achieve a balanced budget for 2009 and determine a sustainable financial plan for the future
Achieve alignment among the key stakeholders as to Team NEO’s:Scope and scale of operations and mix of servicesEvaluation metricsSources of funding Governance structure and board engagement
Key Topics Talent Attraction, Scale of International Attraction, Creating Regional System, Increasing Regional Business Engagement
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The Work Plan Allows for Collaboration Within And Across Issue Teams
Engagement Overview: Timeline Summary
June July August September October November December JanuaryDefine Strategic Intent
Define Transition Needs
DefineStrategic Plan
Define Implementation Plan
Finalize 2009 Budget
Develop Long-Term Budget
Prepared for the Teams
• Strategic Intent• Initial Fact Base• Project Plan
Compile Fact Base Evaluate Options
Issue Team Activities for Board Retreat
Board Retreat I Agenda
• Fact Base Presentations (by Issue Team)
• Large group dialogue
• Issue Team Breakout Sessions to refine Strategic Hypotheses & Evaluation Plans
Boa
rd R
etre
at I
I
Each Issue Team:• Evaluate Hypotheses• Refine Strategy• Integrate with other
issue teams• Prioritize Initiatives• Identify Required
Resources (people & funding)
enlight/Issue Teams Work Based On Feedback
enlight/Steering Committee Compile To Present At Board Retreat II
• Refined Strategies, Priorities, and Resource Needs from Each Issue Team
• Holistic Strategy• Revised 2009 Budget (if nec.)• Proposed Long-Term,
Sustainable Funding Plan
Board Retreat II Agenda
• Share Strategy• Present 2009
Budget• Propose LT
Funding Plan• Attain Buy-In• Develop Transition
Plan Priorities
Phase I Phase II Phase III
Issu
e T
eam
Act
ivit
ies
Sta
ff R
etre
at
Refine 2009 Balanced Budget
Evaluate Hypotheses
Refine Strategy
Develop Fact Base
Form Strategic Hypotheses
Balance Initial 2009 Budget
Boa
rd R
etre
at I
Emerging Leaders Council Mission, Projects and Discussion
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Team NEO Emerging Leaders Advisory Council Mission
Team NEO’s Emerging Leaders Advisory Council will serve as a platform for Northeast Ohio’s next generation of business leadership to provide insight and input to regional business attraction so as to further accelerate our region’s growth.
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Project/Discussion Topics
• Increasing Business Community Engagement– Spreading the Message, Increasing
Ambassadorship is Critical
• Business Attraction– Next generation of business leaders – Smaller/Entrepreneur companies growing
• Talent Attraction: Filling the tech gap– Attracting 25-40 year olds to NEO
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Advisory Council Next Steps:
• 2009 Meeting Schedule
• Topics of Interest: Follow Up and Special Projects
• Ongoing Communication
Thank You