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Aligning Strategic | Plans. For the Development Organization. Eric Rinehart Economic Development Solutions, inc. E-D-Solutions.com . Organizational Strategies Critical Success Factors Success Metrics. Success Planning Model The Overarching Structure of the Plan Documents.
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Aligning Strategic | Plans For the Development Organization Eric Rinehart Economic Development Solutions, inc. E-D-Solutions.com
Organizational Strategies Critical Success FactorsSuccess Metrics Success Planning ModelThe Overarching Structure of the Plan Documents Institutional StrategyStrategic VisionStrategic Goals Business Unit Strategic PlanExplicit StrategiesImplementation Plans adapted from Richard Sessions Integrating External Benchmarking Into Your Strategic Planning Process. Program Operational PlansTime and EnergyKey Results
Blue PrintAn Organizational Planning Document • Vision and Mission • Major Forces: GrowthAssumptions; Environment • Institutional Goals: Goals; Objectives; Priorities • Philosophy: World Class • Core Competencies: Supporting Elements • Assessments: Measures of Success
… Compared with Typical Outline • Reference Overall Singular "Mission" or Desired Result • Take Stock Outside and Inside the System (PEST) • Analyze the Situation (SWOT) • Establish Goals that build on strengths and wards off threats. • Establish Strategies to Reach Goals • Establish Objectives Along the Way to Achieving Goals • Associate Responsibilities and Time Lines With Objectives • Write and Communicate a Plan Document
organization’s mission Customers, Products, Benefits, etc. The organization needs to determine its mission. Why does it exist? What is it trying - in general terms - to accomplish? The mission statement provides the overall direction for the agency in developing its goals and objectives.
Stakeholders Public at LargeFamilies Targeted Areas/GroupsWelfare of Community Business SectorCommerce/Industry Market InstitutionsMarket Place Core Values Economic Indifference- Laissez Faire Distribution Failures- Inequities inDistribution Econ. Performance- Level of Production Structural Limits- Improved Organizations Identify Stakeholders and Values
assumptions about growth Influences, Foundations, Theories The economy is a complex, inter-dependent and adaptive system which we can look describe at various levels of analysis detail major influences component foundations regional growth theories
Plural Interests Market Institutions Social Rooted Interest Area/Group Condition Profit-Making Interest Business Sector Public Interests Government Influences on a Regions’ Economy Behaviors-BasedFramework
Foundations of Economies Public Goods[Gov’ment = Public Interest] • Governance/Taxes administration/budgeting • Regulations protection/ordinances • Infrastructure roads/utilities, etc • Public Services education; amenities Factors of Production[Markets = Plural Interests] • Material Resourcesnatural, technology • Capitalcapital equip; financing • Human Resourceslabor, technicians, admin • Organizationbusiness climate This Endowment is Finite but not Fixed
Functions of Development Community Betterment[Groups = SocialInterests] • Fiscal Stabilitypositioning • Area Redevelopment growth management • Civic Capacity organizations; volunteerism • Economic Opportunityself sufficiency, housing • Enterprise Growth[Business = Profit Interests] • Capital Investmentprivate owners of production • Trade/Export Promotionmarket based purchasing • Production Operationsprice based resource system • Entrepreneurshipcompetitive entry and exit
environmental analysis Structure, Trends, Performance, Identify the key factors and trends important for the organization. How will things outside the organization effect those things that the organization wants to accomplish?
Competitive Advantage StructureOverall Economic Model • Resource Based Economy agriculture and mining • Capital Intensive Economydurable and non-durable goods manufacturing and producer services • Information & Innovation Based Economytelecommunications and software Competitive Advantage; Ricardo, 1815 Substitute for Industry Composition Data
TrendsReflect Goals of Any Economy Paden, 1972 • Supply: Mobility of Resources • Demand: Global Competition • Production: Information Products • Adjustment: Entrepreneur/Technology Substitute for PEST Analysis
Current PerformanceBased on Measures of Success • Industrial Vitality • Mfg output had rebounded; Exports are rising • New ventures & expansions create most jobs • Employment Vitality • Labor force will grow slower than job growth • High skill occupations as fastest growth segment Substitute for Regional Composition Data
institutional goals Foundations and Functions At this point institutional goals and objectives can be developed that move the organization in the preferred direction, doing so within the context which it has to operate
Commerce & Community Affairs • Leadership: Increase the capabilities of practitioners • Infrastructure: Physical social infrastructure improvement • Workforce: Develop a skilled and adaptive workforce • Capital: Access to capital for business growth/expansion • Technology: Provide access to modern business practices • Trade Markets: Linkages between customers/ markets • Industry Investment: Retention, expansion and attraction
Albuquerque New Mexico # 1. Provide high quality and efficient service to the public # 2. Improve public safety services. # 3. Balance new construction & maintenance of infrastructure # 4. Adopt & implement an economic vitality strategy. # 5. Foster the expression & appreciation of the culture. # 6. Maintain stable neighborhoods; provide affordable housing # 7. Achieve sustainable development, balanced development & redevelopment, including infill development. #8. Increase environmental protection & resource conservation
A Typical Strategic Goals Portfolio Similar Strategic Goals because of Similar Models and Interests • Public Facilities • Governance • Taxes/Regulations • Infrastructure • Social Utilities • Market Institutions • Competitive Climate • Capital Access • Human Capital • Material Resource Mobility • Community Betterment • Growth Management • Area Redevelopment • Employment Opportunity • Self Sufficiency • Enterprise Growth • Capital Investment • Trade/Export Promotion • Production Operations • Entrepreneurial Starts
set goal priorities Hierarchy, Chronology, Urgency Because it is impossible to do everything that needs to be done, strategic planning implies that some organizational decisions and actions are more important than others.
Practitioner’s Priorities JobCreation & Retention Tax Base Growth Recruitment and Retention Entrepreneurs & Technology Functions Management & Modernization Trade & Tourism HumanResources Public Services Foundations Tax/Reg. Climate Material Resources Access to Capital Physical Infrastructure
philosophy World Class, High Performance
Context: Global Economy Industry Cluster Focus Vision: High Quality Job Creation Stable Tax Base Mission: Business Competitiveness Community Excellence Adapted from "Emerging Principles in Economic Development: A Benchmarking Tool", June '95. Goals/Objectives/Scope: Public Facilities Capacity Community Betterment Business Vitality Marketplace Capability Organization: Staff Regional Collaboration Partnerships Process: Comprehensive Strategy Strategic, Mission Driven Customer Orientation Measurement/Evaluation Learning Principles for Economic Development
Malcomb Baldridge Approach • Visionary Leadership/Public Responsibility • Strategic Planning: Focus on the Future; Management by Fact • Customer Driven Excellence/Market Focus • Information/Analysis: Organizational & Personal Learning • Human Resource Focus: Valuing Employees & Suppliers • Process Management: Agility, Manage for Innovation • Business Results: Focusing on Results/Creating Value
World Class Operations FUNCTION PRINCIPLES • Facility Mission Best of Class • Products/Services Leading Edge • The Customers Customer Oriented • The Benefits Cost Justified • The Staff Skilled, Motivated • Competition Adaptive • Operations Lean Operations • Administration Flat Management Structure • Facilities Integrated Processes • Risk Analysis Issue Management • Financial Plans Minimized Expenses
core competencies Define the kinds of work which differentiates your organization from others
Product: Specialization Product Quality Brand Identification vs. Low Price Leader Marketing: Distributor Push vs. Consumer Pull Channel Selection Processing: Technological Leadership Vertical Integration Low Cost Position Leveraging External Relations: Relations with Parent Co. Relation to Host Govt Competitive Differentiation
Public Agency Competencies • Capacity Model (Common at State Level) • Delivery System (process/partner) Improvement • Customer Responsive Services (customer centered) • Capacity/System Expansion • Services Model (Common at State Level) • Information: Information and Training • Consulting: Case Work; Customized Counseling • Financing: Grants and Loans
Systems Competencies • Management Functions Model • Planning: Anticipating The Environment • Administration: Managing for Success • Delivering: Product or Service Quality • Evaluating: Tracking Performance • Product Life Cycle Model • Invest: New Products under Development • Growth: Products with Growing Importance • Foundation: Products meeting customer needs • Harvest: Products no longer at the leading edge
assessments Benchmarks and Scorecards
Internal Analysis -- SEA • Resource Level [Input Objectives, Input Indicators] Inputs are the resources put into an effort • Activity Levels [Activity Objectives, Activity Indicators] Activity measurements consider the methods and procedures used to carry out the program. • Output Levels [Output Objectives, Product Indicators] Outputs are the direct results, i.e.the products produced from the workperformed. • Results Levels [Outcome Objectives, Impact Indicators] Outcomes state the benefits GAAP: Service Efforts and Accomplishments
Customer Perspective • Customers Served • Customer Satisfaction Finance Perspective - Leverage - Cost Benefit - Admin Cost • Internal Processes • Performance Metrics • Plan vs. Performance • Learning Organization • Employee Satisfaction • New Initiatives Balanced Scorecard
Conclusion • Questions • Comments