2017 Business Plan HamptonRoadsEconomicDevelopmentAlliance

500EastMainStreetNorfolk,VA23510

p.757.664.2620

www.hreda.com

HAMPTON ROADS ECONOMIC DEVELOPMENT ALLIANCE – 2017 BUSINESS PLAN 1

ContentsI. ExecutiveSummary.............................................................................................2

Vision...............................................................................................................................................2

Mission............................................................................................................................................2

Strategy...........................................................................................................................................2

GoalsandMetrics............................................................................................................................2

KeyPerformanceIndicators............................................................................................................2

II. StrategicApproachandPriorities........................................................................3

PriorityAreasofFocus....................................................................................................................3

MeasurementandEvaluation.........................................................................................................3

III. GoalsandTargets................................................................................................4

TheFive-YearHigherWageJobCreationStrategy..........................................................................4

Top-LevelMetricsandPerformanceIndicators..............................................................................4

IV. TargetIndustriesandSectors..............................................................................5

V. Strategies,OperationalPlansandTactics............................................................5

MarketingandCommunications.....................................................................................................6

BusinessDevelopmentandSalesPromotion..................................................................................7

BusinessRecruitmentandAttraction..............................................................................................8

ExistingIndustryClusterDevelopment,GrowthAcceleration,ExpansionandRetention................................................................................................................8

BusinessIntelligence.......................................................................................................................8

InvestorRelationsandEvents.........................................................................................................8

ManagementandOperations.........................................................................................................9

BudgetsandFunding.....................................................................................................................10

VI. ExhibitA–PerformanceMeasurementFramework..........................................11

HAMPTON ROADS ECONOMIC DEVELOPMENT ALLIANCE – 2017 BUSINESS PLAN 2

ExecutiveSummary

VisionTheHamptonRoadsEconomicDevelopmentAlliance(theAlliance)isanon-profitpublic-privateregionaleconomicdevelopmentpartnershipcommittedtoamoreprosperousanddiverseregionaleconomy.

MissionTheAllianceoperatingmissionistoaggressivelyattract,growandretainhigherwageindustries,talentandjobs.

TheformalmissionstatementfurtherdescribestheAlliancepurpose:TomarkettheHamptonRoadsareaofVirginiaanditsdynamiccommunitiesasaprimarylocationofchoiceforeconomicinvestmentandbusinessexpansionandserveasthearea’sleadregionaleconomicdevelopmentorganizationtorecruitandencouragenewandexpandedbusinessdevelopmentandatalentedbusinessemploymentpooltolocateinHamptonRoads.

Morespecifically,theAlliancewill:

§ IdentifyandtargetnationalandinternationalcompaniesforrecruitmenttoHamptonRoads§ AggressivelymarketthecompetitiveadvantagesofHamptonRoadstotheworld§ Developandpromotearegionalinclusiveofandbolsteredbyitsindividualcommunitybrands§ Focusonachievingregionalsuccessthatisbroad-basedandinclusiveofeachpartnercommunity§ Helporganize,growandstrengthenhigherwageindustryclustersacrosstheregion§ Maintainaregionaleconomicdevelopmentinformation,researchandresourcecenter§ Helpexistingcompanieswiththeirexpansionneedswhenrequestedbythelocalityorthecompany§ Identifyandsupportregionaleffortsthatleadtoabroadanddiversifiedeconomicbase

StrategyTheAlliancewillaggressivelypursuethehigherwagejobcreationstrategydevelopedthroughabroad-basedandinclusivestrategyandplanningeffortinlate2016.ThisstrategyisbasedonReinventHamptonRoadsindustryclusterresearchandhigherwagejobcreationmodelfocusingontheregion’scurrentandemergingadvancedindustrialclusters.TheAlliancestrategycallsforthecreationof32,000newhigherwageindustryclusterjobsthatwilldrivethecreationof71,000newjobsintheregionoverall.Morespecifically,itcallsfortheAlliance,inconcertwithitspartners,tosupportthecreationof9,500higherwagejobsthroughnew-to-marketbusinessrecruitment.

GoalsandMetrics2017organizationalstretchobjectivescallforcompletionof15economicdevelopmentprojectsthatwill:

§ Create1,196newhigherwagejobs§ Increaseregionalpayrollby$65,000,000§ Increasecapitalinvestmentby$110,000§ Absorb600,000sq.ft.ofexistingand/ornewcommercial/industrialspace

KeyPerformanceIndicators§ Attainanaveragewage$55,000or120%oftheaveragemetrowagefornewjobscreated§ Generate135qualifiedleads,65competitiveprojectsandhost45prospectsintheregion§ Maintainpublicrevenueatorabove2016levels§ Generate$250,000innewprivaterevenue§ Maintainaprivateinvestorattritionrateof4%

HAMPTON ROADS ECONOMIC DEVELOPMENT ALLIANCE – 2017 BUSINESS PLAN 3

StrategicApproachandPriorities

PriorityAreasofFocusInsupportoftheFive-YearHigherWageJobCreationStrategy,theAlliancewilllaunchagloballycompetitivedevelopmentprogramandconcentratetime,energyandresourcesinfiveprioritiesareas.

CompetitivenessImprovement§ RegionalBusinessIdentityandBrand.Launchacollaborativecommunity-basedefforttobetterdevelop,

strengthen,merchandiseandpromotetheregion’sbusinessidentity.§ HigherWageIndustryClusterGrowth.Supportandassistineffortstoorganize,developandaccelerate

growthandcompetitivepositionoftheregion’scurrentandemerginghigherwageindustryclusters.§ CompetitiveProductStrategy.Workwithpartnerstoimprovetheregion’scompetitivepositioninthe

areasofworkforce,talentrecruitment,site/facilitydevelopment,andbroadbandnetworkexpansion.

MarketingandPromotion§ HamptonRoads“Go-to-Market”programandcampaign.Designandimplementmarketingand

communicationprogramstoincreaseconsiderationofHamptonRoadsasabusinesslocation.

BusinessDevelopmentandSalesPromotion§ HighProfileHighImpactrecruitment.Focuscompanyoutreachtowardattractionandrecruitmentofhigh

profilehighimpactcorporatetargetsinthetargetindustrysectors.§ SiteLocaters,ConsultantsandAdvisors.ElevateawarenessoftheHamptonRoadsregionthrough

proactiveoutreachtositelocators,consultantsandindustryadvisors.§ REDTeam.Leverageteamstrengthstodeliverhighvaluelocationoptionstobusiness/industryclients.

BusinessIntelligence§ EconomicForum.OrganizeandlaunchtheEconomicForumtorefinethepeerregionbenchmarking

programandinform/educationregionalleadershipontop-levelcompetitivepositionissues/concerns.§ Enhancedcompany/industryresearchplatform.Strengthenresearchcapabilityintargetsectors.

InvestorRelationsandEngagement§ InvestorRelationsandEngagementTeam.Bringtogetheracrosssectionofinvestorstoreview,analyze

andunderstandinvestorbenefits,andframenewinvestmenttiersandengagementopportunities.

MeasurementandEvaluationTheAllianceapproachtoevaluationincludesthreetypesordimensionsofassessment.

§ MonitorProgress:Successincarryingoutprogramactivitiesonscheduleandwithinbudget.§ EvaluateEffectiveness:Determiningwhethereffortsachieveprescribedobjectives.§ MeasureImpact:Assesspositivechangesintheoverallenvironmentthatrelatetoprogramactions.

Withinthiscontext,theAlliancehasdevelopedasystemofperformanceassessmentsthatevaluatesbothhistoricalperformanceandfunctionsasamanagementtooltodrivefutureactionsandresults.Withaclearunderstandingofwhatperformanceareasshouldbemeasured,theAlliancehasalsodevelopedabestpracticeapproachtosettingspecificperformancetargetsandgoals.Theoverallperformanceframeworkalongwithdetailedkeyperformanceindicators(KPIs)isattachedasanexhibitinthefinal2017BusinessPlan.

HAMPTON ROADS ECONOMIC DEVELOPMENT ALLIANCE – 2017 BUSINESS PLAN 4

GoalsandTargets

TheFive-YearHigherWageJobCreationStrategyTheFive-YearHigherWageJobCreationStrategywasdevelopedthroughabroad-basedplanningeffortin2016.ThisstrategyisbasedontheindustryclusterresearchcommissionedbyReinventHamptonRoadsandwasdevelopedasamodelforsettingjobcreationgoalsintheadvancedorhigherwageindustrialclusters.ThesefuturegoalsbecometheperformancetargetsfortheAlliance’sbusinessrecruitmentandattractionprogram.Overfiveyears,theplancallsforthecreationof32,000newhigherwageindustryclusterjobsthatwilldrivethecreationof71,000newjobsintheregionoverall.Theplancallsfor25%or9,510newhigherwagejobstocomefromtheAlliance’snew-to-marketbusinessrecruitmentandattractionwiththebalancecomingfromacceleratedgrowthandexpansionofclusters.Thechartbelowshowshowthesetargetsarerampedupoverthefive-years.

ProjectedFive-YearJobCreationfromHigherWageIndustrialClusters

Attainingtheabovehigherwagesectorjobcreationgoalsisprojectedtoreturntheregiontoa2%jobgrowthrate.

Top-LevelMetricsandPerformanceIndicatorsThefollowingchartillustratesAlliancegoals,targetsandtop-levelKeyPerformanceIndicators(KPIs)s.

MetricorPerformanceMeasure ThresholdGoals TargetGoals StretchGoals

ProjectsCompleted 6 10 15

JobsAnnounced 500 720 1,196

PayrollAnnounced $22,000,000 $36,000,000 $65,000,000

CapitalInvestmentAnnounced $45,000,000 $75,000,000 $110,000,000

AbsorptionofCommercial/IndustrialSpace 240,000SF 400,000SF 600,000SF

AverageWage $44,000 $50,000 $55,000

LeadGeneration 55 90 135

ProjectGeneration 27 45 65

ProspectsHosted 18 30 45

PrivateInvestorAttritionRate 6% 5% 4%

NewPrivateSectorInvestorRevenue $150,000 $200,000 $250,000

2,840 3,505 4,3255,336

6,5851,1961,475

1,820

2,246

2,772

-1,0002,0003,0004,0005,0006,0007,0008,0009,000

10,000

Year1 Year2 Year3 Year4 Year5

4,0364,980

6,145

7,582

9,357

HAMPTON ROADS ECONOMIC DEVELOPMENT ALLIANCE – 2017 BUSINESS PLAN 5

TargetIndustriesandSectorsJobcreationeffortsarefocusedonthepriorityindustrysectorsshownonthefollowingchart.

BusinessServices

Information,Analyticsand

Security

AdvancedManufacturing

LifeSciencesandHealthcare

Maritime,LogisticsandSupplyChain

Aviation,Aerospaceand

Defense

ProfessionalServicesFinancialServices

SharedServicesManagementConsultingPolicy

AssociationsGovernmentContracting

ContactCenters

CybersecurityModeling,

SimulationandTrainingSoftware

DevelopmentGame

DevelopmentandMobileApp

EnergySolutions

AdvancedManufacturing

AdvancedIndustrial

TechnologiesFoodandBeverageProcessing

SmartSensorsManufacturing

MaterialsScience

SpecialtyPharmaMedicalDevicesBiotechnology

DiagnosticTestingPharmaceuticalsClinicalTrialsBioInformatics

MedicalSimulation

PortRelatedOperationsMaritimeServices

ShipBuildingandShipRepairSupplyChainOperations

DistributionandWarehousing

DefenseActivities

Maintenance,Repairand

Overhaul(MRO)AviationRelatedManufacturingAirService

Development

CorporateandRegionalHeadquarters–CentersofExcellence–ResearchandDevelopment

Strategies,OperationalPlansandTacticsTheAllianceconcentratesitseffortswhereitcanaddvalueintheeconomicdevelopmentbusinesscycle.

HAMPTON ROADS ECONOMIC DEVELOPMENT ALLIANCE – 2017 BUSINESS PLAN 6

ThechartbelowillustrateshowtheAllianceroleshiftsthroughoutthesiteselectionprocess.

MarketingandCommunicationsThe2017programyearistheinitialyearoftheAlliance’senhancedandexpandedregionalidentitymarketingandpromotionalcampaign.Themarkingcampaignisdesignedtocreatemoreopportunitiestopresenttheregion’slocationaladvantagestoqualifiedbusinessandindustryprospects.Theprogramincludesastrongerbrandingprogramalongwithspecificmarketingandpromotionalprogramenhancements.TheAlliancecampaigneffortisfocusedonchangingandenhancingperceptionsabouttheHamptonRoadsregion.Thiswillbeaccomplishedbymarketingthroughavarietyofmeansincludingadvertising,directmail,andwebsitecontent.

HAMPTON ROADS ECONOMIC DEVELOPMENT ALLIANCE – 2017 BUSINESS PLAN 7

Impactmeasureswillincludenewleadsthatcomedirectlyasaresultofthemarketingandpromotionalcampaignwithintargetedindustries.Theultimategoalofthecampaignistoconverttheseleadsintonewbusinessopportunities,newcapitalinvestmentandnewjobcreationfortheregion.TheimagebelowdemonstrateshowmarketingandbrandingeffortsdrivetraffictotheAlliancesalesteamandmanifestsitselfintermsofinquiries,leadsandprospectivebusinessandindustryclients.Thebusinessdevelopmentteam,incollaborationwithpartners,workstoconverttheincreasedtraffic,leadsandprospectsintonewbusinessinvestmentprojects.

ConnectingtheDots:

Actionitems§ WorkwithBusinessDevelopment,BusinessIntelligenceandtheREDTeamtoconductbaselineresearch,

regionalidentity/brandauditandprepareregionalpositioningassessmentandbusinesscase.§ Organizeandframetheregionalidentityarchitecturetodrivedevelopmentaregionalidentityandbrand

strategyplatform,andanoverallregionalmarketingandcommunicationsstrategyandplan.§ Designandimplementdirectmarketingandoutreachtobothconsultantsandc-suiteexecutives.§ Planandexecutemajormarketingandcommunicationsmissionstotopnationalmediamarkets.§ Directlysupportandassistintheimplementationofout-of-marketbusinessdevelopmentmissionsto

spreadtheHamptonRoadsbusinessidentitymessage,positivelychangeperceptionsandgenerateleads.§ RefineandupgradetheAlliancewebsite.§ OrganizeandlauncharegionalpublicrelationsandcommunicationsteamtomerchandiseAllianceand

partnerdevelopmentsuccessesacrosstheregion,theCommonwealthofVirginiaandthenation.§ PlanandexecutiveacomprehensiveregionalandCommonwealthofVirginiacommunicationsprogramto

ensurebusinessandgovernmentleaders,stakeholders,partnersandinvestorsareeducatedandinformedaboutAlliance’seffortstoimplementtheFive-YearHigherWageJobCreationStrategy.

§ StrategicallyinvolveAlliancepartners,stakeholdersandinvestorsinalleffortstohelpspreadthemessageoftheHamptonRoadsbusinessidentity.

BusinessDevelopmentandSalesPromotionTheAlliancehassuccessfullydevelopedandmaintainedaproactivedirectoutreachandprospectingprogramfocusedongeneratingqualityleadsthatcanbenurturedandconvertedintojobcreation,jobdiversificationopportunitiesfortheregion.Insupportofthedirectoutreachandprospectingprogram,theAllianceoffersafullrangeofservicestoassistcompaniesastheyevaluateHamptonRoadsasapremierandhighqualitylocationinwhichtolocateandgrowtheircompanies.Businessdevelopmentactivitiesandstrategiesarefocusedontargetedindustries,andorganizedmarketingandsalespromotioneffortsforbothinboundandoutboundpromotion.

HAMPTON ROADS ECONOMIC DEVELOPMENT ALLIANCE – 2017 BUSINESS PLAN 8

BusinessRecruitmentandAttraction1Actionitems

§ PlanandexecuteacomprehensiveprogramofnationalandinternationalBusinessDevelopmentoutreachmissionstargetinghigh-profilehigh-impactcompaniesinselectmarkets.

§ Planandexecutefocusedoutreachtositeselectors,consultantsandadvisorsinkeymarkets.§ LeverageresourcesbyengagingandcoordinatingbusinessdevelopmenteffortswiththeVirginiaEconomic

DevelopmentPartnership(VEDP),theGreaterRichmondPartnershipandothers.§ Supportandparticipateinpublicpartners’prioritizedmarketsandpromotionalactivities.§ SupportandparticipatedirectlyintheIAMCconferenceinRichmond.§ SupportandparticipateselectVEDPsiteselectorevents.§ Participateinorsponsorboothsatselectedtargetedindustrytradeshows/conferences.§ Supporttheregion’scommunitiesasneededbyhostingselectinternationaldelegations.

ExistingIndustryClusterDevelopment,GrowthAcceleration,ExpansionandRetentionHelpingaccelerateregionalbusinessandindustrygrowthandexpansionisakeycomponentoftheAlliance’sfive-yearhigherwagejobcreationstrategy.Maintainingandgrowingemployment,payroll,capitalinvestmentandcorporatepartnersfosterstabilityintheregionaleconomy.TheAlliancewilladdressexistingindustryneedsprincipallythroughengagementinitsclusterdevelopmentandpromotionefforts.

Sincefierceglobalcompetitionforcesmanycompaniestocontinuallyevaluatethebestlocationfortheirbusiness,theAlliancewillworkinclosealignmentwithitspublicsectorpartnerstoconductoutreachtotargetsectorfirmsandencourage/supporteconomicgrowthandexpansionprojects.OutreachvisitstothesesectorsprovidetheAlliancewithvaluableinsightonbusinessdrivers,workforce,competitiveness,andotherissues. BusinessIntelligenceBusinessIntelligenceisacorefunctionoftheAlliance.TheBusinessIntelligenceprogramofworkencompassesfourprimaryworkstreams:businessdevelopmentprojectsupport,organizationalreporting,economicanalysisandcompany/industryintelligence.Buildingontheprogressmadewiththereorganizationoftheunitin2016,thefollowinginitiativeshavebeenidentifiedtoensureBusinessIntelligencecontinuestobeavaluecenterin2017.

Actionitems§ SupporttheReinventHamptonRoadsindustryclusterworkforcegapanalysisresearchproject.§ OrganizeandlaunchquarterlyEconomicForummeetingstorefinetheregionalbenchmarkingprogram.§ Designanddistributefour(4)issuesofHamptonRoadsInsight,apublicationoftheEconomicForum.§ ProvideaccurateandtimelysupporttoallBusinessDevelopmentRFI/RFPrequests.§ Designandimplementamonthlyreportcoveringregionalprogressandorganizationalperformance.§ Organizeandimplementanenhancedindustry/companyresearchplatformtoanalyzeprioritytarget

sectors,identifycompanytargetsandproducedatadrivenregionalprofilesofeachindustrysector.§ MaintainandenhancetheBusinessIntelligencedatainventoryandresearchbasedwebsitepresence.§ ContinuetheBusinessIntelligenceeconomicanalysisprogram,authorregulareconomiccommentaries

andcoordinatedistributionwithMarketingandCommunications.§ Conductspecializedresearchandpreparereportsasrequired.

InvestorRelationsandEventsTheorganization’svaluepropositionisenhancedbyeffectivelyengagingbothpublicandprivatestakeholders.1Thedetailedbusinessdevelopmentcalendarofactivitieswillbeincludedasanexhibitinthefinal2017BusinessPlan

HAMPTON ROADS ECONOMIC DEVELOPMENT ALLIANCE – 2017 BUSINESS PLAN 9

Actionitems:§ OrganizeandstafftheInvestorRelationsandEngagementTeamestablishedtoreview,analyzeand

understandinvestorbenefits,andframenewinvestmenttiersandengagementopportunities.§ Leadthedevelopmentandimplementationofacomprehensiveinvestorengagement,recruitmentand

retentionprogramthatwill,withinfive-years,generate$1.00percapitainannualprivatefunding.§ Generate$250,000innewprivaterevenuein2017.§ Maintainprivateinvestorattritionbelow4%during2017.§ Plan,organizeandrecruitattendanceforfour(4)InvestorUpdatesessionsacrosstheregion.§ PlanandorganizeBoardofDirectorsmeetingreceptions.§ Organizethe20thAnniversaryCommitteetoplanandconductamajoranniversaryeventin2017.

ManagementandOperationsTheAllianceteamisorganizedaroundthecoremissionofregionaleconomicdevelopmentwithoperatingdepartments(BusinessDevelopmentandSalesPromotion,Marketing/CommunicationsandInvestorRelations,andBusinessIntelligence)reportingtothePresident&CEO.FinanceandAccountingservicesareprovidedbytheHamptonRoadsChamberofCommercewiththeirCFOworkingdirectlywiththePresident&CEO.

HAMPTON ROADS ECONOMIC DEVELOPMENT ALLIANCE – 2017 BUSINESS PLAN 10

BudgetsandFundingTheHamptonRoadsEconomicDevelopmentAlliancebudgetfor2017wasapprovedbytheBoardofDirectorsattheDecember8,2016meeting.Thetop-levelbudgetissummarizedinthefollowingtable.ThedetailedoperatingbudgetwillbefinalizedandincludedasanexhibitwhenexpenditureprogrammingiscompleteinJanuaryof2017.

2016BudgetOutlook2 2017Budget(proposed) Variance

Support&Revenue

CorporateInvestment 835,500 1,014,960 179,460

MunicipalInvestment 1,415,590 1,398,915 -16,675

Miscellaneous 10,600 25,000 14,400

SupplementalAllocation3 599,794 599,794

TotalSupport&Revenue 2,261,690 3,038,669 776,979

Expenses

MarketingandPromotion4 1,699,615 807,209 -892,406

BusinessDevelopment 1,209,236 1,209,236

BusinessIntelligence 377,758 377,758

IndustryClusterPromotion 115,619 115,619

InvestorRelations 69,330 255,835 186,505

GeneralOperations 516,625 273,012 -243,613

TotalofAllExpenses 2,285,570 3,038,669 753,099

Balance -23,880 0 23,880

2BudgetOutlookfigureswillberevisedto“actual”attheendofDecember,2016.3One-timesupplementalallocationofHREDAreservefundsdedicatedtolaunchofFive-YearJobCreationStrategy.4Majorvariancesareduetomorespecificallocationofexpendituresinthe2017budget.

HAMPTON ROADS ECONOMIC DEVELOPMENT ALLIANCE – 2017 BUSINESS PLAN 11

ExhibitA–PerformanceMeasurementFramework

Vision

Mission

Goals

Tactics

Objectives

BusinessDevelopment

Marketing&Communications

InvestorRelations

StrategicInitiatives

FinanceandAdministration

ImpactMeasures

ProgramMeasures

MilestonesandMetrics

§ Ten-yearbenchmarks§ Five-yearbenchmarks§ JobCreation§ Payroll§ CapitalInvestment§ AverageSalaries§ %ofprojectsinTargetSectors§ Clientvisitsandrepeatvisits§ Growthinpublicrevenue§ Growthinprivaterevenue

KeyPerformanceIndicators(KPIs)

§ Leadershipengagement

§ Governanceprocesseffectiveness

§ #and%ofprojectsintargetsectors

§ Clientvisitsandrepeatvisits

§ Conversionrates

§ Effectivenessofmissions,tradeshows

§ Qualifiedinquiries

§ Socialmediatargets

§ Websitetraffictargets

§ Mediainquiries

§ Stakeholderengagement

§ Fundraisingcalls

§ Eventandmeetingattendance

§ Overheadasa%ofrevenue

§ Budgetcompliance

§ Employeeengagement/satisfaction

AnnualMetrics

§ Jobcreation§ Payroll/Ave.salaries§ Capitalinvestment

§ Awareness§ Considerationsettargets

§ Publicrevenue§ Privaterevenue

§ Successonpriorityprojects

§ Cashreserves§ Cleanauditmilestones