competing in economic development? use benchmarking
DESCRIPTION
As economic developers, each one of us is interested in what our peers are doing. The most admired EDOs always seem to be doing things a little bit differently, a little bit better. During this webinar, we will show you how certain communities are taking the time to find new, meaningful ways to measure their impact, adjust their tactics, and play on an entirely different level. Find out who the highest performing economic development organizations in the country are and what they are doing to stay on top.TRANSCRIPT
Competing in Economic Development? Use Benchmarking.
About Me
Guillermo Mazier Director Strategic Accounts
Atlas Advertising, Community Systems [email protected]
www.twitter.com/atlasad
@GuillermoMazier
– Former economic developer and tourism marketer for the Costa Rican Investment and Trade Development Board
– Managed economic development and tourism campaign for Tortugero, CR
– Industry speaker, content strategy and digital marketing specialist
Who is Atlas?
1. Denver-based marketing services company, specializing in economic development
2. Founded in 2001, with 25 employees
3. Have worked with more communities than any other economic development marketing services firm in the past 10 years: 140+ economic development clients in 43 states and 6 countries
4. Specialize in providing branding, marketing planning, digital marketing, and GIS enabled websites, all for economic development
5. Pioneered the industry’s first metrics based benchmarking approach for marketing, business attraction, and business retention: High Performance Economic Development Marketing
6. IEDC’s High Performance Economic Development Marketing Partner
7. Frequent public speaker and lead speaker on benchmarking marketing, business attraction, and business retention programs, as well as on branding, research, digital marketing, websites, and GIS.
Our clients generate superior results and
make a greater impact on their
communities
About Atlas’ High Performance
Economic Development Program 1. Initially developed High Performance Economic Development (HPED) to
answer questions from clients “What should our goals be?” 2. HPED, in its third year, is now the the largest and longest running collection of
marketing, business development, and business retention metrics available. 3. Hundreds of EDO’s have used the data to benchmark their marketing,
business recruitment and retention efforts and outcomes that can prove ROI for marketing, branding and website efforts within economic development space.
4. On Monday October 6, Atlas will launch High Performance Economic
Development Online, an interactive benchmarking tool that will allow EDO’s to enter their data and benchmark their business recruitment and retention outcomes by organizational staff size, budget, community population, region, or any combination of these factors.
View the slides, continue the dialogue
• Continue the Conversation: – Follow us on Twitter: www.twitter.com/AtlasAd – Tweet questions using hashtag #ASKATLAS – Join High Performance Economic Development
LinkedIn Group
• View and share the slides with your colleagues (available now):
www.slideshare.com/wright0405
What we will cover
1. Who is Atlas? 2. Defining High Performance 3. Our Analysis of the Data 4. How to Put High Performance into Practice 5. Questions 6. How to Get Your Community’s Report
Poll Question: What is your primary function in your organization?
Poll Question: As a practitioner, how much do you think you impact the overall economic activity in your area?
EDO’s service companies that
comprise a very small percentage of
their economies. ""
186 < 25,000 Average companies served
Typical number of establishments
in a community
Source: Atlas 2014 Benchmarking Study
Defining High Performance
Economic Development
Defining High Performance
1. What corollaries are there in the world to measure performance?
2. Definitions provided by an
international trade organization for economic development
3. The metrics that Atlas High
Performance Economic Development focuses on, and our criteria for choosing them
4. Defining what High Performance
means for each key audience 5. Should we measure outcomes or not?
Corollaries for High Performance
Four Ways the International Economic
Development Council Defines High
Performance
1. Internal Segment (Employee satisfaction,
funding sources
2. ED Program Segment (Business Attraction, Business Retention, Business Creation)
3. Relationship Management Segment (Relationships with internal and external stakeholders)
4. Community Segment (Community well being,
in terms of demographics, )
Atlas High Performance Economic Development
Focuses on the Relationship Management
Segment, plus outcomes from those
relationships.
1. Internal Segment (Employee satisfaction,
funding sources
2. ED Program Segment (Business Attraction, Business Retention, Business Creation)
3. Relationship Management Segment (Relationships with internal and external stakeholders)
4. Community Segment (Community well being,
in terms of demographics, )
Outcomes for jobs announced and capital investment announced
The Metrics Included in the Atlas High
Performance Economic Development Study
1. Visits to the community
economic development website
2. Number of companies served (conversations with companies)
Relationship management
1. Jobs announced in the community 2. Capital Investment announced in
the community
Outcomes
Atlas criteria for including a metric:
1. That is is not available from another party 2. That it is comparable from one community to the next
3. That one metric has a causal relationship on another metric: I.e. website visits drives conversations
4. That it includes data that enables business development and promotion focused agencies
to benchmark their performance against similar communities.
Metrics that Atlas High Performance Economic
Development Does Not Include, and How to Get Them
1. Internal Segment (Employee
satisfaction, funding sources
2. ED Program Segment (Business Attraction, Business Retention, Business Creation)
3. Relationship Management Segment (Relationships with internal and external stakeholders)
4. Community Segment
(Community well being, in terms of demographics, )
1. Do an employee survey, and audit
public v private funding (internal)
2. Hire a consultant to benchmark your Business Attraction, Business Retention, Business Creation program
3. Relationship Management Segment (Relationships with internal and external stakeholders)
4. Benchmark workforce, cost of living, and household income against your peer communities, internally or with a consultant
Defining High Performance by Audience
Internal Audiences 1. High Performance for largest employers
2. High Performance for community partners
3. High Performance for elected officials 4. High Performance for business leaders
External Audiences 1. High Performance for site selectors 2. High Performance for prospective
companies
Site Selectors: Tracey Hyatt Bosman
1. Based in Chicago, IL 2. Former economic developer 3. Specializes in renewable energy and data centers
Midwest Practice Leader – Biggins, Lacy and Shapiro
What Tracey needs and doesn’t need
What Tracey Needs • Contact information • Incentive programs • Tax rates • Recent announcements • Industry-targeted info • Map of your territory • Largest employers • Area colleges and universities
What Tracey Doesn’t Need • General labor statistics • Secondary source wage information • Real estate listings • Rankings • Distance to other major cities
Prospect CEOs:
W. James McNerney
1. Based in Chicago, IL 2. Has held positions at 3M, GE prior to joining Boeing
in 2005. 3. Company has a global supply chain, with parts
manufacture in dozens of countries
CEO and Chairman of the Board, The Boeing Company
What W James needs and doesn’t need
What W James Needs • Fast response • Available property • Incentive programs • Tax rates • Commitment to long term infrastructure • Access to area colleges and universities • Information for relocating employees • Supplier lists
What W James Doesn’t Need • Overly technical incentive programs • To be sold on the quality of life • Distance to other major cities
Poll Question: Should we use outcomes to measure ourselves?
Our Analysis of the Data,
(2012, 2013)
Who participated 2013: 197 Communities
2014: 208 Communities, 6 Countries
The Framework: Business Attraction, Business
Retention, and Marketing, 2012 Data
200+146
175
Communities shared their data
Average number of conversations per organization in the last 12 months
$234million
Average capital investment per community in the last 12 months
Website visits per conversation
1,293
15
Average jobs announced per organization, last 12 months
Value of a conversation, in number of jobs
The Surprising EconomicsOF ECONOMIC DEVELOPMENT ORGANIZATIONS
>> 10 << >> 11 <<
200+146
175
Communities shared their data
Average number of conversations per organization in the last 12 months
$234million
Average capital investment per community in the last 12 months
Website visits per conversation
1,293
15
Average jobs announced per organization, last 12 months
Value of a conversation, in number of jobs
The Surprising EconomicsOF ECONOMIC DEVELOPMENT ORGANIZATIONS
>> 10 << >> 11 <<
200+146
175
Communities shared their data
Average number of conversations per organization in the last 12 months
$234million
Average capital investment per community in the last 12 months
Website visits per conversation
1,293
15
Average jobs announced per organization, last 12 months
Value of a conversation, in number of jobs
The Surprising EconomicsOF ECONOMIC DEVELOPMENT ORGANIZATIONS
>> 10 << >> 11 <<
200+146
175
Communities shared their data
Average number of conversations per organization in the last 12 months
$234million
Average capital investment per community in the last 12 months
Website visits per conversation
1,293
15
Average jobs announced per organization, last 12 months
Value of a conversation, in number of jobs
The Surprising EconomicsOF ECONOMIC DEVELOPMENT ORGANIZATIONS
>> 10 << >> 11 <<
Sneak Peek at 2013 data: Tremendous variance in results
Budget Level Low Jobs Announced
High Jobs Announced
Low Capital Investment Announced
High Capital Investment Announced
Low Conversations
High Conversations
Under $100,000 12 852 $500,000 $442,000,000 10 214
$100,000 to $249,000 10 3,000 $150,000 $1,100,000,000 4 726
$250,000 to $499,000 15 7,000 $300,000 $4,500,000,000 2 600
$500,000 to $999,000 10 32,000 $235,000 $2,500,000,000 10 10,000
$1,000,000 to $2,500,000
10 11,278 $1,000,000 $1,000,000,000 10 4,000
Over $2,500,000 10 50,000 $1,500,000 $11,700,000,000 15 5,045
Sneak Peek: EDO Performance,
benchmarked by population
POPULATION YEARLY WEB VISITS
INQUIRIES PAST 12 MONTHS
AVERAGE JOBS ANNOUNCED
LAST 12 MONTHS
AVERAGE CAPITAL INVESTMENT
ANNOUNCED LAST 12 MONTHS
Less than 25,000 2,474 80 193 $67,950,000
25,001 to 100,000 11,426 93 503 $81,773,363
100,001 to 250,000 24,864 133 1,120 $187,837,410
250,001 to 1,000,000 33,696 303 2,137 $379,538,874
1,000,000 to 2,500,000 102,913 319 3,679 $482,484,240
Over 2,500,000 71,051 800 14,604 $1,463,092,402
Average for all Sizes 27,063 186 1,882 $271,855,546
EDO Performance,
benchmarked by staff size (2013 Data)
STAFF SIZE AVERAGE
YEARLY WEB VISITS
AVERAGE INQUIRIES PAST
12 MONTHS
AVERAGE JOBS ANNOUNCED
LAST 12 MONTHS
AVERAGE CAPITAL INVESTMENT
ANNOUNCED LAST 12 MONTHS
1 2,337 68 276 $37,334,722
2 to 3 14,350 106 672 $154,734,368
4 to 9 29,660 372 2,668 $277,386,479
10 to 19 75,592 381 2,477 $483,902,403
20 or more 69,517 324 11,258 $1,214,120,612
Average for all Sizes 27,063 186 1,882 $271,855,546
EDO Performance,
benchmarked by budget (2013 Data)
Budget Level AVERAGE
YEARLY WEB VISITS
AVERAGE INQUIRIES PAST
12 MONTHS
AVERAGE JOBS ANNOUNCED
LAST 12 MONTHS
AVERAGE CAPITAL INVESTMENT
ANNOUNCED LAST 12 MONTHS
Under $100,000 932 47 181 $44,048,524
$100,000 to $249,000 5,363 82 378 $75,655,476
$250,000 to $499,000 15,127 93 614 $186,704,037
$500,000 to $999,000 19,317 236 1,483 $215,056,038
$1,000,000 to $2,500,000 27,130 293 1,707 $230,341,735
Over $2,500,000 78,591 279 5,471 $657,938,155
Average for all Sizes 27,063 186 1,882 $271,855,546
Poll Question: Did your organization set measurable goals for your marketing, business development, and business retention programs this year (2014)?
Steps to Put High Performance
into Practice
1. Discuss your organizational priorities for marketing, business recruitment, and business retention
2. Assign metrics to certain staff 3. Set a plan to influence that metric for each staff
person 4. Make the plan transparent to your stakeholders 5. Execute, report, and adjust
How Does Your Organization Prioritize Business
Recruitment, Retention, and Marketing/
Promotion?
Assigning Metrics to Staff: What Metrics does
Each Function Influence?
WEB VISITS INQUIRIES /CONVERSATIONS
JOBS ANNOUNCED
CAPITAL INVESTMENT ANNOUNCED
CEO/Executive X X X X
Business Developer X X X
Marketer X X
Researcher X
Setting a Plan so That
Each Staff Person Can Drive
High Performance
Economic Development CEO/ Executive
Metrics He/She Should Influence 1. All Role He/She Plays 1. Setting the direction for the organization 2. Allocating staff and resources 3. Communicating with stakeholders to ensure
board buy in
WEB VISITS INQUIRIES /CONVERSATIONS
JOBS ANNOUNCED
CAPITAL INVESTMENT ANNOUNCED
Business Developer
Metrics He/She Should Influence 1. Inquiries/Conversations with Companies 2. Jobs Announced/Conversation 3. Capital Investment Announced/Conversation What He/She Should Focus On 1. Rapid response to prospects 2. Investigating prospect needs 3. Providing customized responses
WEB VISITS INQUIRIES /CONVERSATIONS
JOBS ANNOUNCED
CAPITAL INVESTMENT ANNOUNCED
Marketer
Metrics He/She Should Influence 1. Website visits 2. Ratio of website visits/inquiry What He/She Should Focus On 1. Driving traffic to the website via Search Engines,
social media, email 2. Keeping content fresh and creating opportunities
to engage 3. Optimizing the website for conversion
WEB VISITS INQUIRIES /CONVERSATIONS
JOBS ANNOUNCED
CAPITAL INVESTMENT ANNOUNCED
Researcher/Economist
Metrics He/She Should Influence 1. Website Visits 2. Jobs Announced 3. Capital Investment Announced Role He/She Plays 1. Creating outstanding content for the marketer 2. Providing customized data to the business
developer 3. Managing and reporting on benchmarked data
WEB VISITS INQUIRIES /CONVERSATIONS
JOBS ANNOUNCED
CAPITAL INVESTMENT ANNOUNCED
How to Make the Plan Transparent
to Your Stakeholders
1. Write down a strategic plan for the next year
2. Outline each staff person’s role in reaching that plan
3. Set activities and outcomes for each person, and for the organization
4. Report quarterly, using a pre-defined
dashboard, to your board and stakeholders 5. Benchmark annually
How to Execute, Report, Adjust
1. Report quarterly, using a
pre-defined dashboard, to your board and stakeholders
2. Review performance
quarterly, including trailing metrics and forward looking metrics
3. Benchmark annually 4. Fold benchmarks back into
the annual plan
How to Benchmark Your Community Using
Atlas High Performance Economic
Development
1. Take the survey here: 2. View your report online, starting Monday October 6 here
Thank you!
Contact information: 929 Broadway Denver, CO 80203 Contact: Ben Wright t: 303.292.3300 x 210 [email protected] www.Atlas-Advertising.com LinkedIn Profile | LinkedIn Group | Twitter | Blog | Slidespace