Atlas Why Metrics Matter 2013
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The document outlines the importance of measuring the outcomes of economic development organizations (EDOs) to validate their contributions to communities, drawing from data collected from over 200 organizations. It identifies key performance metrics, discusses the variance in results across different organizations, and highlights the success of certain top performers in economic development. The report emphasizes the necessity of establishing standardized metrics to foster accountability and enhanced performance in the industry.
Atlas Why Metrics Matter 2013
- 1. PRESENTED BY: HIGHPERFORMANCE ECONOMIC DEVELOPMENT WHY METRICS MATTERA Guide to Measuring the Impact EDO’s Have on Their Communities
- 2. HIGHEST PERFORMING ECONOMIC DEVELOPMENT ORGANIZATIONS IN 2012
- 3. Executive Overview........................................................................................................................4 Do Economic Developers Matter?......................................................................................................5 The Metrics That Matter..................................................................................................................6 2012 Study Participants........................................................................................................... 7 – 9 The 2012 Results................................................................................................................ 10 – 15 What We Discovered: Tremendous Variance in Results.................................................................10 Why Economic Development Performance Can Be So Varied.......................................................11 The Surprising Economics of Economic Development Organizations....................................... 12 – 13 Presenting: The Top Performing EDO’s of 2012.................................................................. 14 – 15 The Factors That Matter........................................................................................................ 16 – 19 Community Size...................................................................................................................16 Budget Size.........................................................................................................................17 Staff Size............................................................................................................................18 The Importance of Driving Conversations...................................................................................19 High Performing Economic Development Organizations.................................................................. 20 – 25 What Are They Doing to Succeed?..........................................................................................20 Case Studies................................................................................................................ 21 – 25 Next Steps for Your EDO ...............................................................................................................26 Appendix.......................................................................................................................... 27 – 31 Why Did Atlas Do This?.........................................................................................................27 How Did Atlas Do This?.........................................................................................................28 Where Did the Data Come From?...........................................................................................29 Can We Trust this Data?........................................................................................................29 About Atlas Advertising..........................................................................................................29 About the Authors......................................................................................................... 30 – 31 Table of Contents >> 3 <<
- 4. High Performance Economic Development is a concept that was born out of Atlas Advertising’s work with 110+ plus economic developers in communities in the United States, Canada, Mexico and Central America. Each community we have worked with over the last 10+ years had the same questions for us: 1. What should our marketing, job creation and capital investment objectives be? 2. How will we know if we are successful? 3. What are the best communities doing to succeed? 4. How can we be more relevant to our investors, boards and stakeholders? Eventually we started to ask ourselves the question: Does anyone collect benchmarked data for the economic development industry? When we could not find any sample of data large enough to help our clients, we decided to build one. We set out to define the industry’s first and largest database of outcomes, and from that exercise, High Performance Economic Development was created. By using this data for the past year and a half, we have learned much about how economic developers around the world are working to make an impact in their communities. Oftentimes efforts and outcomes in our industry can go unrecognized. Oftentimes our communities are not sure what role an ED professional plays, therefore overlooking or misunderstanding our contributions. We at Atlas are inspired by your efforts, and we want to honor you for the work you have done. That is the mission behind this second annual High Performance Economic Development report: to reinforce that you do make a difference, and to provide the tools and metrics to help validate your accomplishments. Thank you and we hope this is helpful to you and your efforts. Here is to making a difference in communities! Executive Overview Ben Wright, CEO, Atlas >> 4 <<
- 5. It’s a question that impacts us all as economic developers — whether we represent a state, large region or a single city or county. Whether our operating budget is ten thousand dollars or ten million dollars: Do we matter? Can economic developers make a difference? Can we really influence location decisions, which in turn drive wealth creation in our communities? Atlas Advertising believes the answer to these questions is a resounding “yes.” However, one question remains: Are we making a difference in every case? Unfortunately, the answer to this question is no — we are not making a difference in enough cases. So how do we remedy this? How do we as an industry validate our existence? How can we show our value and demonstrate the results we directly (and indirectly) impact? We came to the conclusion that in order for our industry to be recognized for the work we do, we needed a standard data set of economic development outcomes. When we could not find any sample of data large enough to help our clients, we decided to build one. Do Economic Developers Matter? “ As an organization, we are relevant to community development and take dollars and invest them back into the community. Be it through infrastructure or quality of life features, like hiking and biking trails. >> CHRISTIAN FLETCHER Marble Falls Economic Development Corporation >> 5 <<
- 6. To emphasize “measured outcomes,” we needed a simple set of metrics that were based on the types of outcomes that economic development organizations could impact. Additionally, we needed metrics that were collectible. After reviewing 80+ possible metrics (see Appendix for more detail), we focused on the following three: • Conversations (defined as discussions with prospective, existing or entrepreneurial companies who are expanding or relocating) that took place in the last 12 months • Jobs announced in the community during the last 12 months • Capital investment announced in the community during the last 12 months GENERATING CONVERSATIONS GENERATING JOBS & INVESTMENT The Metrics That Matter “ Successful economic development strategies have clear long-term goals, but are constantly measuring and tweaking tactics along the way. The team at Atlas is helping us to convert opportunities and to turn traffic into meaningful conversations with companies by applying High Performance Economic Development strategies and metrics. >> KENNY MCDONALD Columbus 2020 >> 6 <<
- 7. Alberta’s Industrial Heartland Assoc. AMP Ascension Economic Development Corporation ATEED Bay Future, Inc. Beaufort County Economic Development Benbrook Economic Development Corporation Bennington Area Chamber of Commerce Birmingham Business Alliance Brenham Economic Development Foundation Brick City Development Corporation Broomfield Economic Development Cabarrus Economic Development Calhoun County Economic Development Corp. Carbon County Economic Development Corporation Carlton County Economic Development Cartersville-Bartow County Dept. of Economic Development CEDA Champaign County EDC Charleston County Economic Development Department Charlotte (NC) Chamber of Commerce Charlotte Regional Partnership Chatham-Kent Economic Development Services Cherokee Area Economic Development Cheyenne LEADS Chippewa County EDC Choose New Jersey City of Janesville Economic Development Division City of Bentonville City of Bowie Economic Development Office City of Centennial City of Cleveland Department of Economic Development City of Fairborn and the Fairborn Economic Development Corporation City of Greenville City of Henderson City of Lebanon, Ohio City of Lewisburg Economic Development City of Loveland City of Madison, Alabama - Planning Department City of Merrill, WI City of Minneapolis Community Planning & Econ. Development (CPED) City of Monticello City of Moraine City of New Richmond City of Palm Bay 2012 Study Participants >> 7 <<
- 8. City of Pittsfield Economic Development City of Prescott City of Riverside, CA City of Rochester Economic Development City of Rohnert Park City of San Jose City of Shoreline City of Waynesboro Economic Development City of Xenia City of Yuba City Clinton Regional Development Columbus 2020 Cowley County Economic Development Partnership Cullman Economic Development Agency DCEDC Development Authority of the City of Milledgeville & Baldwin County Downtown Phoenix Partnership Dwight Economic Development Council East Valley Partnership Economic Alliance Houston Port Region Economic Development Association of Skagit County Economic Development Authority of Western Nevada Economic Development Commission of Florida’s Space Coast Economic Development Corporation serving Tulare County Economic Development Department City of Elk Grove, CA EDC of St. Charles County EDCO Faulkton Area Development Corporation FEDCO Fort Wayne-Allen County Economic Development Alliance Forward Cody Forward Sheridan Frisco Economic Development Corporation Gallatin Economic Development Agency Galveston Economic Development Partnership Grant County Economic Development Council Greater Burlington Partnership Greater Cedar Valley Alliance & Chamber Greater Des Moines Partnership Greater Halifax Partnership Greater Lafayette Commerce Greater MSP Greater Phoenix Economic Council Greater Richmond Partenership, Inc. Greater Wichita EDC Greater Yuma EDC Greene County Development Authority Greene County Partnership Greenspoint District Hamilton County Alliance (Indianapolis MSA) Harrison County Development Commission Huntington County United Economic Development Corporation Huntley Illinois Economic Development Iowa City Area Development Group IVEDC Jamestown/Stutsman Development Corporation Jasper County Economic Development JAXUSA Partnership Jefferson County Development Authority Kenosha Area Business Alliance Kitsap Economic Development Alliance La Plata Economic Development Alliance Lake Area Improvement Corporation Lake Superior Community Partnership Lakeshore Advantage Langlade County Economic Development Corporation League City Department of Economic Development Lincoln Partnership for Economic Development Loudoun County Department of Economic Development Louisiana Office of Community Development Lucas County Development Corp. Macomb County Planning & Economic Development Macon Economic Development Commission Marble Falls Economic Development Corporation Marshall Economic Development Corporation Martin County Alliance for Economic Growth, Inc. McAllen Economic Development Corporation Medina County Economic Development Corporation Meriwether County Development Authority Metro Atlanta Chamber of Commerce 2012 STUDY PARTICIPANTS (continued) >> 8 <<
- 9. Metro Orlando EDC Midland Tomorrow Mineral County Development Authority Moberly Area Economic Development Corporation Monroe County Business Development Corporation Montgomery Area Chamber of Commerce Montgomery Economic Development Corporation Morris County Economic Development Corporation Municipality of Chatham-Kent Municipality of Chatham-Kent Economic Development Services Department Nashville Area Chamber of Commerce Nassau County Economic Development Board NCEDB New Orleans Business Alliance North Carolina Department of Commerce North Carolina’s Southeast North Central Development Center North Florida Economic Development Partnership (NFEDP) Northampton County, Virginia Northeast Indiana Regional Partnership Northeastern Nevada Regional Development Authority Oak Park Development Corporation Office of Economic Development, City of Deltona, Deltona, Florida Ontario County Economic Development Peterborough Economic Development Pflugerville Community Development Corporation Phelps County Development Corp. Phillips County Economic Development Pierce County Economic Development Department Pittsburgh Regional Alliance Plano Economic Development Platte County Economic Development Corporation PNL NEGOCIOS Powell Economic Partnership, Inc. Pueblo Economic Development Corporation Radius Indiana Regional Municipality of Durham Roanoke Regional Partnership Rockford Area Economic Development Council Royal Commission at Yanbu Sacramento Area Commerce and Trade Organization San Joaquin Partnership Savannah Economic Development Authority Schaumburg Center for Economic Development SECRETARIAT OF ECONOMIC DEVELOPMENT OF JALISCO Sherman County Economic Development Shiawassee Economic Development Partnership Silsbee Economic Development Corporation Snake River Economic Development Alliance Sonoma County BEST South Western Kentucky Economic Development Council Springfield Economic Development Agency State of CT Department of Economic & Community Development Stephens County Development Authority Team NEO Terrebonne Economic Development Authority The City of Spartanburg The Economic Development Alliance for Brazoria County The Greene County Partnership The Right Place The Village of Romeoville, Illinois Town of Ajax Business Development Town of Altavista Town of Enfield CT Trego County Economic Development Ulster Development Upshur County Development Authority Wake Forest Chamber of Commerce Economic Development Dept. Walworth County Economic Development Alliance Wharton Economic Development Corporation Whiteside County Economic Development Yakima County Development Association York County Economic Development Board >> 9 <<
- 10. After reviewing the data of 200+ organizations (spread across 40 states and four countries) that completed benchmark studies, we were able to classify and rank each entity based on several common factors. From there we were able to determine which organizations were most successful when it came to conversations tracked, jobs announced and capital investment announced. WHAT WE DISCOVERED: TREMENDOUS VARIANCE IN RESULTS As the data in the second annual High Performance Economic Development report outlines, there is tremendous variance in those most basic metrics (even when controlling for population served, operating budget, staff size): 1. Number of conversations reported 2. Jobs announced 3. Capital investment announced BUDGET LEVEL LOW JOBS ANNOUNCED HIGH JOBS ANNOUNCED LOW CAPITAL INVESTMENT ANNOUNCED HIGH CAPITAL INVESTMENT ANNOUNCED LOW CONVERSATIONS HIGH CONVERSATIONS Under $100,000 20 243 $500,000 $442,000,000 5 214 $100,000 to $249,000 2 1,500 $600,000 $250,000,000 1 400 $250,000 to $499,000 5 5,000 $300,000 $4,500,000,000 3 600 $500,000 to $999,000 4 4,283 $235,000 $2,500,000,000 15 670 $1,000,000 to $2,500,000 35 8,000 $10,000,000 $650,000,000 5 4,000 Over $2,500,000 6 16,835 $1,500,000 $2,200,000,000 3 1,425 As the table shows, it is clear that in some cases, there are breakout performers in all levels of budget investment. However, what is equally clear is that there are just as many breakout non-performers. The 2012 Results >> 10 <<
- 11. WHY ECONOMIC DEVELOPMENT PERFORMANCE CAN BE SO VARIED After reviewing the data, and after further conversations with many leaders in the industry, we believe that there are only a few explanations for how these highly-disparate, highly-varied performance numbers could persist: 1. The definition of what an economic development entity is supposed to accomplish is vague, and varies from community to community. 2. As a result of 1), there has not been a standard for setting, measuring and comparing outcomes in the industry. 3. As a result of 1) and 2), boards, key stakeholders and investors in economic development do not believe that they can hold staff and leadership responsible for specific outcomes. They have not created a culture of accountability. 4. Though there is significant turnover in staff and executive leadership in economic development due to “performance issues,” the replacement of those positions rarely comes with renewed commitment at the board or stakeholder level for the outcomes that should be produced. All of this is happening during a critical time: “ Economic development organizations increasingly operate under much tighter budgets at a time when the need for economic development programming is becoming more crucial to the continued vitality and competitiveness of a community. INTERNATIONAL ECONOMIC DEVELOPMENT COUNCIL in High Performing Economic Development Organizations, 2011 11
- 12. 146 Average number of conversations per organization in the last 12 months $ 234 million Average capital investment per community in the last 12 months 1,293 Average jobs announced per organization, last 12 months The Surprising Economics OF ECONOMIC DEVELOPMENT ORGANIZATIONS 12
- 13. 200+ 175 Communities shared their data Website visits per conversation 15 Value of a conversation, in number of jobs 13
- 14. THE TOP PERFORMERS: WHICH COMMUNITIES ANNOUNCED THE MOST JOBS IN 2012? At first glance, these organizations may look as if they have nothing in common. They’re of different geographies, sizes and organizational structure. However, they have one thing in common: Compared to similar size communities in population, they announced the most jobs in our sample — both attracted and retained. They also have set goals, applied metrics throughout the year and have held themselves accountable to their goals. Congratulations to all six winners. Well done! Over 2,500,000 Gold 1,000,000 to 2,500,000 Gold 250,000 to 1,000,000 Gold 100,001 to 250,000 Gold 25,001 to 100,000 Gold Less than 25,000 Gold Silver Secretariat of Economic Development of Jalisco Bronze Team Northeast Ohio Silver Nashville Area Chamber of Commerce Bronze Pittsburgh Regional Alliance Silver Charlotte (NC) Chamber of Commerce Bronze The Economic Development Alliance for Brazoria County, TX Brick City Development Corporation, Newark, NJ Silver Royal Commission at Yanbu (Saudi Arabia) Bronze York County Economic Development Board Silver Nassau County (FL) Economic Development Board Bronze City of Rochester (NH) Economic Development Corporation Silver Meriwether County (GA) Industrial Development Authority Bronze City of Moraine (OH) 14
- 15. THE TOP PERFORMERS: ACROSS MULTIPLE CATEGORIES Most Website Visits Gold Most Conversations/Inquiries Gold Most Jobs Announced Gold Most Capital Investment Announced Gold Silver Greater Des Moines (IA) Partnership Bronze Cabarrus (NC) Economic Development Silver North Carolina Department of Commerce Bronze Auckland (NZ) Tourism, Events and Economic Development Silver Columbus (OH) 2020 Bronze Nashville Area Chamber of Commerce Silver Imperial Valley (CA) Economic Development Corporation Bronze North Carolina Department of Commerce 15
- 16. DOES COMMUNITY SIZE MATTER? Some of you reading the results of the winners right now are wondering: 1. There’s no way my community could compete with the likes of a Columbus or a San Jose. Or you’re thinking: 2. Where the heck is Marble Falls? Or Romeoville? For nearly two decades, we have been working in or consulting with EDO’s who have in the back of their minds looked at other EDO’s and said “They are so large, they can afford to do what they do” or “We can’t possibly produce the results they do.” No longer does this have to happen. Because now we can look at results generated by population size. Predictably, the data shows that organizations that represent smaller communities generate fewer conversations, announce fewer jobs, and announce less capital investment compared to larger communities. POPULATION CONVERSATIONS PAST 12 MONTHS AVERAGE JOBS ANNOUNCED LAST 12 MONTHS AVERAGE CAPITAL INVESTMENT ANNOUNCED LAST 12 MONTHS Less than 25,000 43 115 $24,951,083 25,001 to 100,000 90 411 $81,263,040 100,001 to 250,000 112 737 $330,501,622 250,001 to 1,000,000 157 1,696 $335,914,394 1,000,000 to 2,500,000 327 3,035 $378,869,231 Over 2,500,000 603 6,134 $502,258,333 AVERAGE FOR ALL SIZES 146 1,293 $234,366,814 The Factors That Matter 16
- 17. DOES BUDGET MATTER? We also have spoken with numerous EDO’s who have said, “Their budgets are so big, they can afford to do that” or “We can’t possibly do that.” Again, for the first, time, we can look at results generated by budget size as well. Interestingly, the data does seem to indicate that as organizations spend more, there is a clear correlation with jobs announced and capital investment announced. However, the correlation breaks down with conversations, as the largest budget organizations (over $2.5 million per year), on average, do not have as many conversations as the organizations with budgets of $1 million to $2.5 million. BUDGET LEVEL AVERAGE CONVERSATIONS PAST 12 MONTHS AVERAGE JOBS ANNOUNCED LAST 12 MONTHS AVERAGE CAPITAL INVESTMENT ANNOUNCED LAST 12 MONTHS Under $100,000 45 85 $67,050,000 $100,000 to $249,000 59 300 $40,047,027 $250,000 to $499,000 85 542 $219,461,767 $500,000 to $999,000 129 712 $210,183,125 $1,000,000 to $2,500,000 335 1,617 $212,146,897 Over $2,500,000 193 3,987 $499,600,294 AVERAGE FOR ALL SIZES 146 1,293 $234,366,814 17
- 18. DOES STAFF SIZE MATTER? Lastly, staffing also plays a role in the performance expectations, and the actual performance that EDO’s have for themselves. Like some of the other measures, the larger the staff size, the greater the results. Perhaps not surprisingly, the largest organizations (those with 20 or more staff) have a disproportionately large number of conversations. STAFF SIZE CONVERSATIONS PAST 12 MONTHS JOBS WON LAST 12 MONTHS NEW ANNUAL WAGES 1 56 176 $45,676,585 2 to 3 85 493 $186,364,000 4 to 9 161 1,696 $267,705,000 10 to 19 184 2,895 $469,212,381 20 or more 199 6,279 $548,110,000 AVERAGE FOR ALL SIZES 146 1,293 $234,366,814 18
- 19. Generating Awareness Generating Conversations Investment Jobs THE IMPORTANCE OF DRIVING CONVERSATIONS If there is one thing that the best EDO’s are doing to drive results, it is focusing on attracting, servicing and converting conversations into meaningful interactions — which means more jobs and capital investment in their communities. How can you drive more conversation? One of the most effective ways is to drive more traffic to your website. As you can see from the graphic, on a daily basis an average EDO receives 98 visits to their website — which converts into (an average of) one conversation every other day with a potential client. We know from this statistic alone that your website can be the workhorse for your marketing efforts. A DAY* IN THE LIFE OF AN ECONOMIC DEVELOPER 98visits to their website 1conversation every other day with companies they have not served before 5 new jobs announced $901,411 in capital investment announced *business day 19
- 20. High Performing Economic Development Organizations WHAT ARE THEY DOING TO SUCCEED? So far in our report, we’ve determined that: • EDO’s can impact their communities • There are very important metrics that need to be consistently measured • Performance can vary in economic development — and the reasons why • Size (community, budget, staff) does indeed matter • Websites are a great tool to drive conversations So you might be asking yourself — what can I be doing right now to drive visits to my website? How can I be generating more conversations with potential clients? And ultimately, what are the best ways to drive conversations, that in turn convert to more jobs and more capital investment for my community? While websites have been shown to be an effective tool for increasing awareness, there are a multitude of marketing tools and tactics that will provide equally successful results — when executed and measured properly. What works best for your community? We do know from working with top performers, and talking with ED professionals throughout the country, the current “best practices” that are driving results, creating jobs and attracting capital investment. The following organizational profiles and case studies will provide an insightful look into what some of the top EDO’s around the nation are doing to generate more conversations. For some it comes down to relationships. For others it’s generating more awareness through digital advertising. And for others it is social media communications channels. Each community is different and each EDO needs to take a holistic approach when building their branding and marketing strategy. Learn from your peers and apply these High Performance Economic Development practices in your community. “ For me, metrics are simply a yardstick of the impact I am having. I am driven to make a difference in communities — it is why I go to work everyday — and metrics help me sleep, or not sleep — at night. SARA DUNNIGAN “Metrics Queen” 20
- 21. A BIAS TOWARD ACTION What is driving more conversations, and therefore more jobs and capital investment, to Columbus, Ohio — more than any other market its size? 1. Columbus, Ohio enjoys a very diverse economy and is not reliant on any one sector, allowing them to adapt and adjust more deftly than economies that are concentrated in one industry or sector. 2. Additionally, extraordinary business leadership (at the highest levels/CEO’s) coupled with public leadership that removes barriers, creates an ideal environment for getting things done in Columbus. 3. From an organizational standpoint, Columbus 2020 has a bias toward action and is always focused on a clear, long-term stake in the ground. 4. They also credit their coordinated existing business outreach and attraction strategies. Focusing on their current businesses while not losing sight of their new opportunities has given them a definite competitive advantage. According to Kenny McDonald, Chief Economic Officer for Columbus 2020, “Successful economic development strategies have clear long-term goals, but are constantly measuring and tweaking tactics along the way. The team at Atlas is helping us to convert opportunities and to turn traffic into meaningful conversations with companies by applying High Performance Economic Development strategies and metrics.“ Kenny McDonald Columbus 2020 INVEST BACK IN COMMUNITY Bigger is not always better. Just ask Marble Falls, Texas. This community of 6,000+ just 45 minutes outside of Austin, announced the most jobs (both attracted and retained) for their size category: under 25,000. Executive Director Christian Fletcher explains that in Marble Falls, it’s not all about job creation. They are more comfortable with 15-20 employee companies and not the large corporations — as they just don’t have space for them. What they have found that works for them is taking care of their existing companies as well as reinvesting dollars locally back into the community. Says Fletcher, “As an organization, we are relevant to community development and take dollars and invest them back into the community. Be it through infrastructure or quality of life features like hiking and biking trails.” And how they measure has made a difference as well. Using an Excel file, the EDC tracks every conversation and keeps track of the prospects that are not a fit, as well as those who could potentially choose Marble Falls as a location. “Even if we can’t help them, we record it as a conversation and track what it is they are indeed needing. Perhaps it’s bigger space or more room to grow.” Christian Fletcher Marble Falls Economic Development Corporation 21
- 22. METRICS RULE — AND PUTTING THEM IN FRONT OF YOU EVERY DAY WORKS Over the past 20 years in Ohio, Virginia, and now as a Transformation Strategist at Chmura Economics, Sara Dunnigan has developed one of the most advanced systems for measuring the impact of economic development organizations. Using a wide variety of metrics, she is able to understand the economies she works in, and the impact that the EDO she is working with has on that economy. “For me, metrics are simply a yardstick of the impact I am having. I am driven to make a difference in communities – it is why I go to work every day — and metrics help me sleep, or not sleep, at night.” Sara’s “metrics wall” when she worked at the Greater Richmond Economic Development Partnership Sara Dunnigan Chmura Economics MATCH ASSETS TO SECTORS Like many other EDO’s, McAllen EDC in Texas says their “secret sauce” for generating conversations is hard work, focus — but most importantly — customer relationships. Says Keith Patridge, President and CEO, “Now more than ever we are creating a quality environment and focusing on building relationships. The numbers will draw the eyes, but it’s the success stories and strategy that will capture the heart.” Patridge recommends to other economic developers that the focus should be on determining what your differentiating community assets are, and matching them to your target sectors — that way you are engaging in more “qualified” conversations.Keith Patridge McAllen Economic Development Corporation 22
- 23. DIFFERENTIATION — AND SEA SALT CARAMELS How does JAXUSA in Jacksonville, FL generate conversations and more than double the number of new jobs in a year? The old fashioned way. By building and maintaining relationships with site selectors over the years, their experienced and seasoned staff has been able to generate some astonishing results in the last twelve months. This past year, each project manager increased their contacts to their assigned group of site selectors, via familiarization tours, industry conferences, or just personal outreach with handwritten notes and gifts of Jacksonville’s own sea salt caramels. In fact, one site selector even commented to a JAXUSA project manager that he has been “trying to find a job” in their market to bring business their way — a sure sign of appreciation. Additionally, JAXUSA believes that differentiating your community from competitors is key to success. Says Cathy Chambers, Senior VP, “Jacksonville is a fairly young market — very up-and-coming. We knew we had an opportunity to build a new brand for our city, rather than try to overcome an old brand, and take this time to focus on our main sub-cluster industries.” JAXUSA also took a different approach with their marketing tactics. Rather than relying on print ads of the past, JAXUSA completely transitioned to the Bizo ad network and saw an increase of 169% in online impressions — in half the time. Additionally, they saw a 163% increase in website visits per day, as well as 43 clicks per day in 2013 vs. 26 clicks per day in 2012. Finally, JAXUSA made concerted public relations efforts this past year and realized more than 600,000 impressions with a media ROI of almost 300%. The difference was the shift from promoting what the organization does, to a more targeted focus on their key industries in trade publications. It paid off in jobs and capital investment as well. JAXUSA saw more jobs come to the Jacksonville area these last 12 months than the previous year, and more than tripled their capital investment: • 4,333 new jobs with 33 different companies and $545 million in capital investment, vs. • 2,183 jobs with 18 companies and $145 million in capital investment the year prior Conversations converting to jobs and capital investment, all while measuring their results. High Performance Economic Development at its best. Cathy Chambers JAXUSA 23
- 24. TARGETING SELECT COMPANIES When trying to generate more conversations, Greater MSP believes in sticking to the basics, including: • Emphasizing relationships with both partners and prospects • Carefully targeting select companies and ensuring they know the needs of those companies • Leveraging regional assets and providing a high level of responsiveness With the large amount of projects their organization works on, Greater MSP decided to institute a tracking system that will allow them to help determine the impact of their involvement. While some projects came to them in the early stages of inquiry, other projects saw them assisting with a connection, or providing a specific resource. Although Greater MSP sees themselves eventually moving away from this measuring system, it has helped them determine where they are making the most difference. “We found that early on in our history, we needed to have a way to explain our involvement in a project. As many projects take time to work and close, early project “wins” had a lighter touch than we would normally have,” said David Griggs of Greater MSP. “To highlight this “lighter” touch, and thus recognize the hard work of other partners, we found a way to highlight the projects as “light, medium and heavy” touches. Criteria do not exist for what constitutes each designation, but rather a “gut test” on our involvement. As we age as an organization, the “light” touches have diminished (we have had none this year to date) and would expect this to become irrelevant in future years as our project management becomes more involved and apparent.” David Griggs Greater MSP A MULTITUDE OF MEDIA TOOLS As an economic development practitioner for over 20 years, Marty Vanags has worked in communities such as Rockford, IL, Bloomington, IL, and Indianapolis, IN. In recent years, Marty has been one of the biggest proponents of using multiple forms of media as tools to develop relationships. Marty has • Hosted ongoing radio shows • Contributed to his own blog • Uses Twitter consistently to communicate “The definition of economic development for me is about developing relationships with, and solving problems for, business. I have worked in communities that have been successful at retention, recruitment and entrepreneurial development, all at different times,” said Marty Vanags. “Social media, blogs and even my own economic development radio show have allowed me to cast a wider net than I could have thought. These tools have helped me to develop and maintain more relationships, and have allowed me to solve more problems for my community.” Marty Vanags The Indy Partnership 24
- 25. RAMP UP DIGITAL COMMUNICATIONS We asked Tracye McDaniel, President and CEO of Choose New Jersey: What was the one thing you did in 2012/2013 that drove your results more than any other effort? “There was no one activity that can be singled out as the most valuable to our 2012/2013 efforts. Rather, it was the expansion of programs into new markets, the ability to reach new audiences and valuable partnerships and collaborations that helped Choose New Jersey drive our results in 2012/2013. Some of these included: • Extending our research based lead generation to 12 countries outside the United States — Canada, Denmark, Finland, France, Germany, Israel, Italy, India, Spain, Sweden, Switzerland and the United Kingdom — to reach a broader, international audience. • Our collaboration and partnership as one of four elements of the New Jersey Partnership for Action (PFA). As the privately funded marketing arm of the PFA, Choose New Jersey’s ongoing collaboration with three government PFA elements — the New Jersey Business Action Center, the New Jersey Economic Development Authority and the Department of Higher Education — gave us the ability to accelerate job growth and capital investment. • Ramping up our digital communications including increased attention to SEO, the addition of world languages and other website enhancements; the development of a robust social media program which includes daily posts to LinkedIn, Facebook and Twitter; the distribution of our NJ Buzz and award-winning NJ Byte e-newsletters; and the addition of two new micro-sites, RFP Watch and ChooseNJSites.com. • The January launch of “New Jersey: A State of Resilience,” a post-Superstorm Sandy campaign that targeted corporate decision makers at the Presidential Inauguration in Washington, D.C., and at the Super Bowl, Mardi Gras and Site Selectors Guild. Tracye McDaniel Choose New Jersey 25
- 26. Armed with this framework, and this data, what should you do to drive results in your own community? Ifyouareaboardmember: ✓ Takethisreporttoyournextmeeting,andaskstaffandyourfellowboardmembers: “How do we measure the impact that we are making on our community?” Ifyouareaneconomicdevelopmentpractitioner: ✓ Benchmarkyourcommunity-getabaseline First, if you haven’t already, get the Atlas Performance Audit by taking the survey at http://Atlas2012BenchmarkingSurvey.questionpro.com. You will receive the report below, benchmarking the performance of your organization against communities that are similar in size. ✓ “PlanforPerformance”™withyourboardandstakeholders Next, translate your current plans that may or may not be geared to drive conversation, into plans that do. This involves a series of powerful workshops, planning steps and actionable goal setting that will increase engagement in your organization, and in your staff. ✓ Staff,trainandinspireyourstafftomakeanimpact We have yet to meet an economic development staff that has extra time to devote to new initiatives. As a result, doing anything new means stopping doing other things. From a staffing perspective, they need to know how to drive conversation, how to prioritize it when they get it, and how to advance it toward a positive outcome for your community. All too often, staff time gets eaten up with standing meetings, passive “shows of support,” and other “time sucks” that don’t drive impact. Next Steps for Your EDO 26
- 27. Appendix WHY DID ATLAS DO THIS? After more than a decade of working in 43 states and 6 countries, we are consistently struck by this fact: There are communities and economic developers everywhere that have led the way — and there are communities and economic developers everywhere that have lost their way. And on the surface, it is nearly impossible to tell which is which. It is only after we have “gotten under the hood” in so many communities that we could find who showed substantial economic growth and results, and who struggled to do so. It is our objective with HighPerformanceEconomicDevelopmentto shed light on the people and organizations that are the superstars of the profession. In recognizing them, we hope to help others understand how economic developers are becoming even more crucial to the continued vitality and competitiveness of a community. “ Now more than ever we are creating a quality environment and focusing on building relationships. The numbers will draw the eyes, but it’s the success stories and strategy that will capture the heart. KEITH PARTRIDGE McAllen Economic Development Corporation 27
- 28. HOW DID ATLAS DO THIS? First, we interviewed dozens of economic developers about the metrics they use to track both their organization’s performance as well as the performance of their local economies. This yielded a list of nearly 80 different metrics — far too many for the average economic development professional to track. Soweranthislistthroughafewfilters: 1. Are these metrics available publicly already? 2. Do organizations track them already? 3. If not, are they trackable without much additional staff or financial investment? 4. Are these metrics predictive? Next,wereducedthelistbyhalfbytakingouttrackingmetricsthathadtodowithmeasuringtheoveralleconomyinour communities.The Census Bureau, the BLS, the BEA, and others do a great job of this and we do not need to duplicate their efforts. This left us with a long list (about 40 data points) that track an EDO’s activity and results directly. It was up to us to simplify this list so that even the organizations with the most limited resources could track them. Wethenarrivedatthefollowing: • Conversations, defined as discussions with prospective, existing, or entrepreneurial companies who are expanding or relocating • Jobs announced in the community • Capital investment announced in the community Thoughwecouldcertainlytrackmore,thesethreemetricsmeetourcriteriaof: • Being tracked already (for the most part) • Trackable (if not done so already) • Predictive (they relate to one another and predict an impact on the community) 28
- 29. WHERE DID THE DATA COME FROM? Actually,itcamefromyouandyourpeers.Here’showwegotit. 1. Atlas developed a simple online survey and distributed it via email 2. We sent five separate emails to our list of professionals over the last 10 months 3. We partnered with numerous state economic development associations to assist in data collection 4. 294 Organizations from 40+ states and 5 countries have now participated over the past two years Haven’ttakenthesurveyyet?Don’tbeleftout. To take the survey, paste this link in your browser: http://Atlas2012BenchmarkingSurvey.questionpro.com CAN WE TRUST THIS DATA? The data used in HighPerformanceEconomicDevelopmentis reported directly from economic developers, each of whom uses their own method of counting website visits, conversations, jobs announced and capital investment announced. We cannot and did not verify every data point in every submission. However, we did do the following: 1. When an answer appeared out of industry norms by orders of magnitude, we did require the respondent to provide evidence of the number. 2. We were explicit about the metrics we were looking for, i.e. jobs announced, rather than organic job growth. High Performance Economic Development is the largest and most comprehensive collection of economic development outcomes ever collected. To get there we must rely on self-reported information. But we do as Ronald Reagan said: “Trust, but verify.” ABOUT ATLAS ADVERTISING Atlas Advertising is a niche economic development marketing agency that serves more than 110 different economic development clients in 43+ states and 6 countries. Founded in 2001, Atlas Advertising helps economic developers reach national and international prospect and site selection audiences. Atlas Advertising delivers branding, website development, mapping, research and creative services professionally, by a staff experienced in economic development. Unlike firms with little or no economic development experience, Atlas Advertising uses a proven mix of economic development marketing tactics that generate interest from site selection audiences. This saves our clients time and money, impresses stakeholders and boards, and delivers better prospect response relative to general or unfocused economic development campaigns. Atlas Advertising’s economic development campaigns have been named among the best in the country by IEDC and Angelou Economics, and have won awards regionally from business-to-business marketing organizations. 29
- 30. ABOUT THE AUTHORS BenWright,CEO As CEO of Atlas Advertising, Ben Wright is obsessed with helping economic developers grow the vitality in their communities. In the 10+ years since he started Denver, Colorado based Atlas Advertising, the company has grown to serve more than 80 different economic development clients, in 43+ states and 6 countries, including the Tennessee Valley Authority, the Savannah EDA, Alabama Power and dozens more. Having worked all over North America, Ben understands how economic development agencies must compete in a global marketplace. He applies this passion for places and knowledge of people into Atlas Advertising’s very core, and thus, into every engagement. Ben is also the lead product innovator at Atlas, having been the driving force behind the company’s strategic services, GIS and Prospect Management products, and more. Ben started his career in economic development as the Chief Economist for the Metro Denver EDC, in Colorado in the early 1990s. Ben helps clients develop and execute innovative marketing strategies, and is a frequent speaker with the International Economic Development Council, Georgia Tech Innovation Institute and various state and regional economic development conferences. Ben is a graduate of Stanford University in California with a degree in economics, and an emphasis on urban studies. Ben lives in Denver, CO, with his wife and three adventurous daughters. He finished the first two triathlons of his life in 2012. ContactInformation: e: benw@Atlas-Advertising.com t: 303.292.3300 x210 @atlasad GuillermoMazier,DirectorofStrategicAccounts Guillermo’s primary objective as Director of Strategic Accounts at Atlas is to represent and oversee the company’s business development activities. He works with new and prospective Atlas clients to provide strategic recommendations on how to increase inquiry levels, prospect activity, and stakeholder engagement through Atlas’ technology suite and service offerings which include GIS mapping, website development, social media, branding, strategy and creative services. On any given day you can find him collaborating with Atlas’ Denver based team, researching (markets, technology etc.), writing proposals, presenting, demoing Atlas products and engaging in high- level discussions with director, VP and C-level executives throughout North America. ContactInformation: e: guillermom@Atlas-Advertising.com t: 303.292.3300 x232 @atlasad 30
- 31. AmyBailey,AccountSupervisor Much of Amy’s career has involved working with cities and regions across the U.S. to develop brand identities, communication strategies, and marketing plans for both tourism and economic development…interspersed with a few ad agency stints working with brands across a range of industries, from financial services and non-profits, to consumer packaged goods and retail. Amy’s passion lies in connecting people with places. At Atlas, her focus is research, brand strategy, and creative development: understanding what makes a community special, and ultimately producing a plan to tell that story in a way that inspires action and drives results. ContactInformation: e: amyb@Atlas-Advertising.com t: 303.292.3300 x239 @atlasad CarolineJoy,DirectorofCommunications Caroline spent most of her marketing and communications career in the financial world, and has developed a keen interest for all things economic development. “I’ve always had a love for writing, but understand that communication is more than just putting words on a page. It involves a great deal of strategic thinking and planning, especially in our message-saturated society.” As Atlas’s communications director, she handles all content – from information architecture, to content audits and development, to full campaign brand-storming. Caroline is the lead writer for Atlas Advertising and loves the process of learning about new places and then conveying that knowledge to local, regional and national audiences. ContactInformation: e: carolinej@Atlas-Advertising.com t: 303.292.3300 x211 @atlasad 31
- 32. 1128 Grant Street, Denver, CO 80203 303.292.3300 | www.atlas-advertising.com communications + technology for world landmarks Atlas Advertising has developed a unique partnership with the International Economic Development Council, and is proud to announce that we are IEDC’s exclusive High Performance Economic Development Marketing Partner. EXCLUSIVE PARTNER IEDCHIGHPERFORMANCE ECONOMIC DEVELOPMENT