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Formulating
Strategies
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Module 4
Describing a CollaborativeRegional EconomicDevelopment Framework
Leading the Planning Effort
Detecting Regional Advantage
Formulating Strategies
Executing Your Plan
Module Objectives
* Conducting a SWOT analysis
*Identifying & organizing issues
*Prioritizing regional issues
*Visioning
*Defining strategy options
*Beginning Implementation
*Setting Strategic Priorities
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Objectives
Define the strategy formulation process
Conduct a comprehensive SWOT analysis
Identify and organize regional issues and goals to be
addressed
Prioritize regional issues and goals to be addressed
Develop consensus on a vision
Defining strategy options
Set strategic priorities
Begin implementation planning
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I.
Conduct aComprehensive Regional
SWOT Analysis
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SWOT Design Model
Creation of Strategy
Threats &
Opportunities inEnvironment
Key Success
Factors
External AppraisalStrengths &
Weaknesses ofRegion
Distinctive
Competencies
Internal Appraisal
Filtering Process for Potential Strategic Issues
Socioeconomic Data Inputs:
Experiences
Quantitative & Qualitative FactsAnalyses
SWOT
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SWOT Methodology
Regional strategic plan sets out strategy to:
Capture external opportunities by exploiting regional strengths
Counter external threats by addressing regional weaknesses
SWOT makes most sense when focused on specificchallenges
The process of defining SWOT characteristics involves
integrating:
Analysis of regional economic advantage and
Assessment of regional institutional capacity to implement a plan
Combine interpretation of cluster
analysis as input into SWOT
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Economic & Institutional SWOT
Economic AdvantageAnalysis
Key questions:
What are the current andprojected sources of wealth
creation in the region? Which are the regions
economic vulnerabilities thatmust be recognized andaddressed?
How can projected wealthcreation be realized?
Results from analysis of 5building blocks, presented interms of SWOT, and reviewedand revised by leadership &stakeholders
Institutional CapacityAssessment
Key questions:
What are the key organizational
and physical features whichprovide the region with a uniquebenefit
What are the challenges thatmust be overcome to create acompetitive advantage?
How can these be tied tostrategic options?
Results from assessment of visionand goals (as defined byleadership and stakeholders) forachieving prosperity
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II.
Identify and Organize
Regional Issues and Goalsto be Addressed
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Regional Issues and Goals
Summarize
Strengths and Opportunities as Assets
Weaknesses and Threats as Challenges
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Talent
& Knowledge
Capacity
Risk Tolerance Technology
Development &
Deployment
Global
Connections
Global
Capital
Advanced
Business
Facilities
Social
Networks &
Civic Support
Business
Environment
Global Brand
Presence
Unique
Amenities
Inventory of
Regional Assets
and Challenges
Organizing Your StrategicChallenges & Assets
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Definition:The ability for the region and its companies
to compete with the world's best in global markets
Includes Assets and Challenges Related
Global perspective of area businesses, workers, and leaders
Visibility in the global marketplace brand identity
Linkages to global customers (and a critical mass of export-based
activities)
Identification of emerging and existing market opportunities
Access to higher order business services
Complexity of market challenges
Global Brand Presence
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Definition: State of the art commercial and industrialdevelopment capable of supporting a diversified economy,
and that provides full access to a globally-linked
infrastructure
Includes Assets and Challenges Related
Available buildings that meet the functional needs of emerging clusters
Last-mile access to state-of-the-art telecommunications infrastructure
Relatively easy access to the national/global land, air, and/or sea transportation
networks
Range of available facilities for a wide array of
expanding and start-up companies
Direct linkages to professional business services,
especially for start-up enterprises
Advanced Business Facilities
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Definition:Availability of a range of financial servicesfor companies at different stages of their life cycle
Includes Assets and Challenges Related
Debt financing institutions and services, especially having
familiarity with unique clusters Established proximate sources of equity (e.g., angel networks and/or
venture capital)
Knowledge of the range of financial needs and expertise to support
smaller companies and the unique needs of firms in growing or
emerging clusters
Global Capital
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Definition: The extent that goods, people, services, and
knowledge link to one another and global markets
Includes Assets and Challenges Related
Pervasive traditional infrastructure networks
Highways (necessary, but not sufficient)
Multimodal Transportation networks
Passenger air access
Public transportation
Infrastructure to support higher order business services for:
Telecommunications capacity (the physical IT infrastructure)
Continuous/easy information transfer (formal and informal networks thatsupport idea exchange)
Global Connections
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Definition:Fertile environment for new business
formation
Includes Assets and Challenges Related
Culture that supports both the success and failure inherent in taking
risks
Capital to invest in risk-taking activities
Presence of early technology adopters
Management expertise to translate ideas into commercially viable
ventures
Risk Tolerance
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Definition: Sources and users of new products and/or
processes
Includes Assets and Challenges Related
Technology creation
Resources devoted to Basic Research
Applied research capacity
Industry has access to external problem solving capacity
Access to research and STEM talent
Technology adoption
Access to information about new product or process innovations Capital for investments
Willingness to take risks
Technology Development & Deployment
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Definition:Ability of businesses and workers tomanage business costs and climate given current
global economic pressures
Includes Assets and Challenges Related
Coherence of tax structure and business regulation, includingenvironmental regulation
Accessibility of relevant government and business information
Transparency and stability of government
Relative cost of doing business
Stable and open relationship between labor and management
Existence of similar cluster networks
Access to specialized professional business services
Competitive Business Environment
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Definition:Public services adequate to meetcitizen/worker demands
Includes Assets and Challenges Related
Social Networks and Civic Support
Community services for a
growing population
Water and sewer Affordable housing
Sufficient investments
in public school
facilities
Good, reliable localgovernance
Community services for a
demanding public
High quality public education Safety and security
Day care and public
transportation
Parks and recreation
Environmental quality
Social networks (community) to support
growth & development
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Definition: The current and potential human capital available in areapeople and institutions (i.e., current skills as well as ability to learn
and discover)
Includes Assets and Challenges Related
The quality of the labor force
Technical and learning skills
New work ethic (that values creativity, ideas, and knowledge over
dependability and rote performance of duty)
Accessible learning opportunities
Secondary/post-secondary
Science, technology, engineering & math
Continuous/easy knowledge transfer
Social networks across diverse cultures/backgrounds
Technology and infrastructure to support idea
sharing
Talent and Knowledge Capacity
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Definition:Assets designed to attract and retain people!
talent aswell as citizens
Includes Assets and Challenges Related
Attractiveness to workforce (especially the creative class)
Managers
Producers
Service providers
Quality of life for a changing workforce
(the Third Place)
Changing demographics and values
Proximity to attractive downtowns and cultural institutions Access to unique natural environments and related outdoor
activities (e.g., water, beaches, mountains, parks, etc.)
Unique Amenities
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Take a moment and review your own regions assets and
challenges
Which are the 2 most valued assets that make your regionunique?
Which 2 challenges appear to create the greatest concern?
Do your regions assets and challenges fit into the strategy
options we discussed? If not, which ones dont? If so,
which ones do? prior slide?
How do these assets and challenges relate to your regional
advantage?
What Does This Framework Miss?
Prioritizing Issues
Group Exercise
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III.
Prioritize Regional Issues
and Goals to be Addressed
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Regional Issues and Goals
Identify those in which action might makethe greatest impact
Develop a short list of those that the
leadership and citizenry wish to tacklethrough concerted action
Convert these preferred actions to goals
designed to address the priority issues
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Authorizing
Central control (esp. of
resources)
Role of benevolent leader
in making decisions
Voting
The use of secret ballots
Low-tech (using post-it notes or gold stars)
High tech community voting tools Consensus building
Retreats
Summits
Prioritizing Regional Issues and Goals -
Decision-making Techniques
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Gaining buy-in to Decisions
Focus on principles and values instead of the
specific actions
Link priority actions to principles and values in
the vision Keep the full list
! Hold on to all the recommendations in the report
! Emphasize priorities in the Executive Summary
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IV.
Develop Consensus on a
Vision
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Elements of Successful Regional Visioning
Ensuring consensus on important values
Acknowledgement of differences in values
Identification of commonalities
Defining a future prosperity in terms that mean
something
Uniqueness of vision statement
Appropriateness to the region
Incorporation of principles for making strategic choices
Nexus among regional vision, regional assets,articulated goals, and feasibility of action
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Creating Your Own Definition of Future
Prosperity
Shaped by economic, demographic, technology, and
social trends
Key questions to consider when defining future
prosperity of an area:
What industries will serve as the economic bedrock of the
community in the future? Do these industries support
family sustaining jobs?
What skills will be required of the workforce?
How will demographic and social trends impact quality of
life?
How will the region remain competitive in the global
economy?
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Regional Prosperity?
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Process for Agreeing on a Vision
The Vision Thing
Planning vs. Visioning theyre not the same
Techniques for visioning
!
Visualization exercises! Philosophical question and answer discussions
! Scenario building efforts
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Goals and Values
Value identification
Statements of agreed beliefs
Importance in parameter setting
Goal setting
Articulating
Prioritizing
Agreeing (consensus building)
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Elements of a Vision Statement
Timeframe: Consider Desired Future State of the Regional
Economy (10-20 years)
Goals: Need to Prioritize Regional Goals (i.e. make sure
they are Realistic and Limited in Number)
Values: Principles that are important for all to defend in
taking any action
Assets: Understanding of key regional opportunities and
resources that will serve as the foundation forfuture action
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Exercise: Examples of Vision Statements
Northern Kentucky - Vision2015.org
East Midlands
North Carolina Future Forward Leadership Committee
Texoma as a Hometown Hotspot
Market Street Services, Hopkinsville-Christian County in
Kentucky
East-Central Vermont CEDS Committee
(Take a few moments and read the vision statements on the last two
pages in module four. Discuss with those at your table.)
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V.
Formulate Strategy Options
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Mapping strategic responses to the preferred future
Setting priorities (SELECTING VITAL
PROJECTS)
Finalizing decisions
Gaining consensus
Getting commitments
Prioritizing Strategy Options
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Define the Need for Strategy Options
Recognition of broad array of issues that can have
significant impacts on regional economy
Wide array of potential strengths/ opportunities (i.e.,
assets) and weaknesses/threats (i.e., challenges)
Sometimes perspectives of stakeholders focus too
narrowly on traditional assets and challenges
Need for a way to organize the litany of assets andchallenges to manage more efficient stakeholder
discussions
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EnhanceTalent
& Knowledge
Capacity
PromoteEntrepreneurial
Risk-taking
Create&Adopt New
Technologies
ConnectGlobally
AccessGlobal
Capital
DevelopAdvanced
Business
Facilities
BuildSocialNetworks &
Civic Support
Create a
CompetitiveBusiness
Environment
EstablishGlobal Brand
Presence
OfferUnique
Amenities
Strategic Actions
To Achieve
Regional
Advantage
Organizing Your StrategicActions
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VI.
Set Strategic Priorities
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Priority Setting Decision Making Exercise
Building on the previous exercise
Brainstorm a list of actions that might address the
2 challenges that you identified as the greatestconcern in the exercise we just completed.
What approach would you use to narrow the list to 3 and
build consensus?
What 3 actions did you agree on and why?
Why did you discard certain actions?
How do you propose to inform the proponents of these
actions about the discarded actions?
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VII.
Begin the Implementation
Planning
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Elements of Priority Strategy
Implementation Plans
Rationale for Action (Challenges)
The Intended Outcomes (Goals)
The Proposed Initiatives (Strategies)
The Actions and Tasks (Tactics)
Success Measures
-Outcome Metrics-Implementation milestones
Partners (Convener and Stakeholders)
Funding Needs
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Review, Questions and
Discussions
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