Competing in Economic Development? Use Benchmarking
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Guillermo Mazier, Director of Strategic Accounts at Atlas Advertising, discusses the company's focus on benchmarking in economic development marketing. Atlas, established in 2001, has pioneered a metrics-based approach to evaluate marketing effectiveness, helping over 140 economic development organizations improve their performance. The upcoming launch of their High Performance Economic Development online tool will allow organizations to benchmark their business recruitment and retention outcomes against various factors.
Competing in Economic Development? Use Benchmarking
- 1. Competing in Economic Development? Use Benchmarking.
- 2. About Me Guillermo Mazier Director Strategic Accounts Atlas Advertising, Community Systems guillermom@atlas-advertising.com www.twitter.com/atlasad – 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 @GuillermoMazier
- 3. 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.
- 4. Our clients generate superior results and make a greater impact on their communities
- 5. 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.
- 6. 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
- 7. 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
- 8. Poll Question: What is your primary function in your organization?
- 9. Poll Question: As a practitioner, how much do you think you impact the overall economic activity in your area?
- 10. 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
- 11. Defining High Performance Economic Development
- 12. 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?
- 13. Corollaries for High Performance
- 14. 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, )
- 15. Atlas High Performance Economic Development Focuses on the Relationship Management Segment, plus outcomes from those relationships. 1. Internal Segment (Employee satisfaction, funding sources 2. ED Program Segment (Business Attraction, Business Retention, Business Creation) 3. Relationship Management Segment (Relationships with internal and external stakeholders) 4. Community Segment (Community well being, in terms of demographics, ) Outcomes for jobs announced and capital investment announced
- 16. The Metrics Included in the Atlas High Performance Economic Development Study Relationship management 1. Visits to the community economic development website 2. Number of companies served (conversations with companies) Outcomes 1. Jobs announced in the community 2. Capital Investment announced in the community
- 17. 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.
- 18. Metrics that Atlas High Performance Economic Development Does Not Include, and How to Get Them 1. Internal Segment (Employee satisfaction, funding sources 2. ED Program Segment (Business Attraction, Business Retention, Business Creation) 3. Relationship Management Segment (Relationships with internal and external stakeholders) 4. Community Segment (Community well being, in terms of demographics, ) 1. Do an employee survey, and audit public v private funding (internal) 2. Hire a consultant to benchmark your Business Attraction, Business Retention, Business Creation program 3. Relationship Management Segment (Relationships with internal and external stakeholders) 4. Benchmark workforce, cost of living, and household income against your peer communities, internally or with a consultant
- 19. 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
- 20. 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
- 21. 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
- 22. 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
- 23. 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
- 24. Poll Question: Should we use outcomes to measure ourselves?
- 25. Our Analysis of the Data, (2012, 2013)
- 26. Who participated 2013: 197 Communities 2014: 208 Communities, 6 Countries
- 27. The Framework: Business Attraction, Business Retention, and Marketing, 2012 Data
- 28. The Surprising Economics OF ECONOMIC DEVELOPMENT ORGANIZATIONS The Surprising Economics OF ECONOMIC DEVELOPMENT ORGANIZATIONS 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 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
- 29. The Surprising Economics OF ECONOMIC DEVELOPMENT ORGANIZATIONS 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 200+ 175 Communities shared their data Website visits per conversation 15 Value of a conversation, in number of jobs
- 30. 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
- 31. 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
- 32. EDO Performance, benchmarked by staff size (2013 Data) STAFF SIZE AVERAGE YEARLY WEB VISITS AVERAGE INQUIRIES PAST 12 MONTHS AVERAGE JOBS ANNOUNCED LAST 12 MONTHS AVERAGE CAPITAL INVESTMENT ANNOUNCED LAST 12 MONTHS 1 2,337 68 276 $37,334,722 2 to 3 14,350 106 672 $154,734,368 4 to 9 29,660 372 2,668 $277,386,479 10 to 19 75,592 381 2,477 $483,902,403 20 or more 69,517 324 11,258 $1,214,120,612 Average for all Sizes 27,063 186 1,882 $271,855,546
- 33. EDO Performance, benchmarked by budget (2013 Data) Budget Level AVERAGE YEARLY WEB VISITS AVERAGE INQUIRIES PAST 12 MONTHS AVERAGE JOBS ANNOUNCED LAST 12 MONTHS AVERAGE CAPITAL INVESTMENT ANNOUNCED LAST 12 MONTHS Under $100,000 932 47 181 $44,048,524 $100,000 to $249,000 5,363 82 378 $75,655,476 $250,000 to $499,000 15,127 93 614 $186,704,037 $500,000 to $999,000 19,317 236 1,483 $215,056,038 $1,000,000 to $2,500,000 27,130 293 1,707 $230,341,735 Over $2,500,000 78,591 279 5,471 $657,938,155 Average for all Sizes 27,063 186 1,882 $271,855,546
- 34. Poll Question: Did your organization set measurable goals for your marketing, business development, and business retention programs this year (2014)?
- 35. 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
- 36. How Does Your Organization Prioritize Business Recruitment, Retention, and Marketing/ Promotion?
- 37. 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
- 38. Setting a Plan so That Each Staff Person Can Drive High Performance
- 39. Economic Development CEO/ Executive WEB VISITS INQUIRIES / CONVERSATIONS JOBS ANNOUNCED CAPITAL INVESTMENT ANNOUNCED 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
- 40. Business Developer WEB VISITS INQUIRIES / CONVERSATIONS JOBS ANNOUNCED CAPITAL INVESTMENT ANNOUNCED 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
- 41. Marketer WEB VISITS INQUIRIES / CONVERSATIONS JOBS ANNOUNCED 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 CAPITAL INVESTMENT ANNOUNCED
- 42. Researcher/Economist WEB VISITS INQUIRIES / CONVERSATIONS JOBS ANNOUNCED CAPITAL INVESTMENT ANNOUNCED 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
- 43. 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
- 44. 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
- 45. 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
- 46. Thank you! Contact information: 929 Broadway Denver, CO 80203 Contact: Ben Wright t: 303.292.3300 x 210 guillermom@Atlas-Advertising.com www.Atlas-Advertising.com LinkedIn Profile | LinkedIn Group | Twitter | Blog | Slidespace