Competing in Economic Development? Use Benchmarking

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



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



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


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



$234million



1,293

15




>> 10 << >> 11 <<

200+146

175



$234million



1,293

15




>> 10 << >> 11 <<

200+146

175



$234million



1,293

15




>> 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


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


EDO Performance,

benchmarked by budget (2013 Data)

Budget Level AVERAGE

YEARLY WEB VISITS

AVERAGE INQUIRIES PAST

12 MONTHS


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


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


JOBS 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


JOBS 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


JOBS 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


JOBS 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

Economy & Finance

Competing in Economic Development? Use Benchmarking