Economic Development

Best Practices:

Effective Reporting, Tracking

& Goals

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What’s the goal? OG&E’s ED department’s goal is to help build a

better business climate in our service area,

through leadership, strategic planning, lead

development, stakeholder engagement, policy

making, business-friendly legislation, and

competitive utility rates and infrastructure.

Achieving this goal allows us to better serve our

customers and communities to attract jobs,

capital investment and new load on our system.

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Reporting-return on?

• Impact- are communities growing through jobs and capital investment

• Image- customer satisfaction and opinion of the brand

• Investment- MW/kWh load growth

Executive Summary

Mission: To work strategically with stakeholders to create wealth, jobs, load growth, and grow Oklahoma’s economy.

Vision: To build strong OG&E communities through the creation of a sustainable, innovative and strategic economic development department as well as policy and program advocacy.

Operational Excellence: Enhance our capabilities to

create value for our

customers.

Partnership: Create an environment where

our stakeholders value our

efforts.

Advocacy: Champion economic

development in Oklahoma.

Lead Development Develop a lead generation

plan that targets high-value

new customers.

Initiative

#1

Initiative

#2

Initiative

#3

Initiative

#4

Key Goals Key Goals Key Goals Key Goals

• Maintain active RFP project

portfolio and improve

processes.

• Actively engage partners,

companies and consultants

to promote OG&E service

area.

• Lead ED recruitment and

BR&E efforts with partners.

• Recognition as the leader

for ED in Oklahoma.

• Leverage community and

partner involvement for

increased value recognition.

• Leverage the collective

efforts of the State and

regional organizations to

increase project pipeline

• Utilize capabilities of internal

partners to increase project

successes.

• Through leadership

platforms, make economic

development strategic in

Oklahoma.

• Champion high-value added

economic development

efforts.

• Increase role of OG&E and

stakeholders in the creation

of a more attractive

investment and job creation

environment.

• Identify key industry targets

that create wealth, match

value proposition and are

growth industries.

• Leverage OG&E business

development opportunities for

new growth.

• Leverage internal business

and industry intelligence for

lead generation.

• Develop and maintain a lead

generation platform.

SWOT Analysis

THREATS:

1. State image and budget issues

2. Competition from other utilities

3. Lack of leadership and advocacy

STRENGTHS:

1. Strong OG&E brand reputation

2. Acknowledged operational excellence

3. OG&E: high reliability and low rates

4. Compelling value proposition for

strategic industries

WEAKNESSES:

1. Lack of Skilled workforce

2. Lack of quality sites and buildings

3. Lack of adequate staff

4. Lack of adequate resources

OPPORTUNITIES:

1. Owning ED in Oklahoma

2. Leveraging brand value and recognition

3. Management and leadership support

4. Lack of Leadership and Advocacy

Strategy Map “How value is created”

Maximize

OGE Value

Increase

Economic

Impact

Increase

Electric

Customers

Improve

Asset

Utilization

RFP

Response

Recruitment

and BRE

Efforts

Service Attributes

Product

Development

Lead

Partner

Relationship

Public

Image

Brand

Human Capital

Organization & Cultural

Culture Leadership Alignment Teamwork

Leverage

Partnerships

Policy

Advocacy

Operations

Excellence

Policy

Development

Collaboration

and

Development

Wh

at to

acco

mplis

h

Ho

w to

acco

mp

lish

Balanced Scorecard

Financial Perspective

• Increase successes of new and expanding

projects

• Increase economic impact

• Grow and improve economic climate

• Capital Investment

• Announced Projects

• Jobs

• Increased MWH sales

• Set minimum

metrics TBD

Customer Perspective

• RFP response process improvements

• Lead/Partner recruitment and BRE efforts

• Lead ED strategic efforts

• Community product development

• Create/maintain strong partnerships

• Strengthen brand/public image

• Monthly project

portfolio Mgmt..

Participate in 4

external

outreach events

• 5 stakeholder

programs

Inte

rna

l P

ers

pe

cti

ve

Operations Excellence

Leverage Partnerships

Policy Advocacy

• Strive to be a top performing department

• Continuous improvement in processes and

services

• Leverage OG&E’s Oklahoma’s strategic

partners efforts

• Ensure alignment with the needs of

Oklahoma small and medium communities.

• Position OG&E economic development as

the recognized leader in Oklahoma • Recognized OG&E ED vision/mission

• Max 95% O/M

• Documented

plan outcomes

• 4 external

events

• 4 company/

consultant calls

• Customer score

> 7

Collaboration and

Development

• Strong Board of Directors engagement

• Ensure appropriate policies and procedures

are being followed.

• Annual review of activities and results

• TBD

• Monthly reporting of projects

• Actively lead/participate in

recruitment efforts

• Community strategic reviews

• Monthly review of O&M versus

plan

• Quarterly ED plan reviews

• Lead/Participate in strategic

partner events

Balanced Scorecard Continued:

Lea

rnin

g &

Gro

wth

Pe

rsp

ecti

ve

Human Capital

• Increase ED staff to ensure ability to execute

activities.

• Increase funding resources.

• Maintain professional development.

• Key leadership roles and responsibilities

defined.

• Staff attends relevant professional

trainings.

• Elevating avg. bottom-line economic

impact per member.

• Roles and

responsibilities

reviewed

annually

• Staff

demonstrate

applied learning

skills internally

Organizational &

Cultural Capital

• Staff actively involved in leadership

opportunities and viewed as opinion leaders

• Foster departmental collaboration with our

partners.

• Leverage partner involvement to influence

policies and programs

• Joint participation between board of

directors, OG&E Leadership and ED

Department

• Participate on

boards where

appropriate

• Annual

strategic

planning review

with partners

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Project pipeline report

Project

Location

Load

Capital

Investment

Jobs

Costanza

Queens

5

13M

105

Cartman

South Park

15

145M

40

Lebowski

Malibu

1

8M

15

2001

Space

70

250M

185

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OK-Economic Development Results

Wins New Jobs

projected

Average Annual

Wage

New Annual Payroll

Projected

New Investment projected from

Wins

FY 2012 65 9,640 $55,164 $531,780,960 $1,067,618,000

FY 2013 73 7,473 $68,241 $509,964,993 $3,338,893,000

FY 2014 81 7,859 $52,229 $410,467,711 $1,951,960,000

FY 2015 87 7,136 $64,345 $459,165,920 $1,998,032,000

FY 2016 66 5,200 $62,463 $283,519,557 $2,413,186,000

FY 2017 82 3,500 $6,000,000,000

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Summary

• The impact and value of the OG&E Economic Development

department affects many stakeholders and should be considered

extremely critical to the company’s continued success. OG&E

must continue to invest in and grow our economic development

efforts, and continue its efforts to provide the leadership,

expertise, experience, relationships, technical knowledge,

recruitment activities and community engagement to grow our

service area and to be a valuable, strategic partner to so many

community and state organizations.

Thank You

Richard Cornelison

Economic Development Manager

CORNERL@OGE.COM