Leadership for
Economic Development
A Primer for Policy Makers and Community Leaders
Economic Development
Strategies (a partial list!)
Recruit New Business
Help Local Companies Expand
Help Companies Facing Challenges
Help Support New Business Creation
International Trade Development
Promote Tourism and Conventions
Develop Property and Infrastructure
Downtown Revitalization
Workforce training/development
Work to resolve business climate issues
(advocacy): taxation, regulation, etc.
Research/Information Clearinghouse
As the need or
popularity for
economic
development
grows… this
list of activities
grows as well.
Don’t be
surprised to
see issues like
housing &
social services
get on this list
Economic Development:
Why All the Hoopla!?
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Create Jobs
Raise Incomes
Raise Tax Base
Help Local Industries
Stabilize the Economy
Avoid Obsolescence
Develop Resources
Revitalize Community
Lots of nonprofits
and other
organizations are
using “return on
investment”
metrics. As a
result we are no
longer unique and
the competition for
funds is stiff.
New Priorities
1970 - 2000
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The industrial
recruitment
paradigm is dead!
Ensure strong
transportation and utility
infrastructure
Offer low cost labor
Assemble constituent
groups to finance industrial
parks
Attract large businesses
with large manufacturing
facilities
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Now:
Ensure strong technology
infrastructure: telecomm,
incubators, networks, etc…
Offer highly skilled workforce
Build collaborations to
leverage human capital and
innovation centers
Encourage entrepreneurship
and small start-ups
Always Be Learning…Bank on Change
Sitting On Governing Boards
& Committees
Board Responsibilities:
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Financial Oversight
Strategic Planning
Raising Funds
Developing Policy
Community Relations
Monitoring and Evaluation
Hiring/firing Executive Director
Board Development
Providing Counsel/Assistance
Are you helping
sustain the Board and
the organization?
 Remember Boards Sustain An Organization – Staff
Comes and Goes
Tools for Effective Organizations
(codewords for Leadership!)
 Time Management:
– Clearly understand what is time sensitive, what are the top
priorities, and stay focused
 Master the ability to work with groups and
committees:
– Be great facilitators
– Empower your peers and participants
– Make it worthwhile… be objective oriented and do not meet for the
sake of meeting
 Run effective meetings:
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Did I tell you to be prepared?!?!
Have an agenda
Send important materials out in advance!
Get input from everyone
You would be
surprised how
many organizations
don’t do this… and
the amount of
trouble it can cause
 Manage Change – don’t become a roadblock!
Enron & the New World of
Accountability
• Congress passed the Sarbanes-Oxley Act to
make Corporations more transparent and
accountable.
– This act applies to nonprofits
• All nonprofits should now have:
A confidentiality
policy can work
side by side with
public disclosure
requirements… if
you are careful!
– Document retention policies
– Whistleblower protection policies
– Conflict of interest policies (signed annually!)
• For economic development boards you should
also have a “confidentiality” policy
Accounting and Finance
• Choose a financial report that is easy to develop
and convey:
– Suggestion: Use a “Cashflow Statement”
• Establish internal controls to prevent fraud!
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Review bank statements
Have the Board approve financial statements for every month
Two signatures on checks
Does your
Establish fiscal policies
organization
take these (or
Review and approve audits or financial reviews
other ) steps
Review Executive Compensation (the law)
to prevent
Review and approve IRS form 990 (the law)
fraud?
Staffing and Personnel
• Often the most important component affecting
success of the organization
• Create a fair and formal employment “system”
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Job Descriptions
Organizational Chart
Personnel Policies
Evaluations
Defining expectations for
new hires (including
management) is as
important as finding the
right person!
• Hiring the right director – what to look for…
• Getting new staffers off to a good start
– Developing goals and sharing expectations
Working in 2012
• Recognize that there are several generations in
the workforce right now:
– Traditional, Baby boomers, Generation Xers, Millenials
– Each of these generations have a different attitude
towards work
• Develop generational awareness
– How to recruit, motivate, train, retain and supervise
changes from generation to generation
Anyone who employs a
multigenerational
workforce understands
the challenges first
hand
When Generations Collide
Traditional
Boomers
Xers
Millenials
Goals
Build Legacy
Build Stellar
Career
Build Portable
Career
Build Parallel
Career
Rewards
Job Well Done Money, Title,
Office
Training
Learn Hard
Way
Train ‘em &
they leave
Feedback
No News
Good News
Annual Review Will ask when
and data
wanted
Instant
Feedback
Changing Jobs Change a
stigma
Change puts
you behind
Change
necessary
Change a daily
routine
Life Balance
Support in
shifting and
balancing
Help me find
meaning
Give me
balance now
Not at 65
Flexibility to
balance all
activities
Retirement
Reward
Retool
Renew
Recycle
Freedom to Do Work with
Meaning
Training an
incentive to
stay
Continuous
Learning
Principles for Successful
ED Organizations
• Sharkproof Principles For Success (or Survival)
• Based on over 100+ years of combined
practitioner experience
• Focused on:
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Partnerships
Communication/Public Relations
Board Management
Organization
Program/Personnel
Working with Partners
Business Development
Coalition Building
Infrastructure Support
Development
Property Development
Recruiting
Business Climate
Quality of Life
Utilities
Port
Districts
Revolving and
Micro-Loan Funds
Workforce
Development
Government (Federal,
State, Cities and Tribal)
Visitors &
Convention
Bureau
Tourism
Community
Action
Programs
Community
Development
Economic
Development
Districts
Business Development
Coalition Building
Access to Capital
Technical Assistance
Funding
Business Climate
No one has a
franchise on
economic
development!!
Partnership
 Get Your Partners Involved!!
 Resolve or Avoid “Turf” Issues with
Partners!!
 ED is a Team Sport -- Spread the Credit
around!
The more you give the
credit away… the
more it will come full
circle back to you!
Communications/Public
Relations
 Keep Your Stakeholders Informed!!
 Your ED program should tangibly address
community issues
 Economic development organizations MUST engage
in public relations and community education
Ask Yourself
 What does your organization do to stay in touch with your
key stakeholders, members & investors?
 Can you and your fellow board members cite your local
EDC’s top priorities and recent accomplishments?
 What “tools” are available to support public and investor
relations?
Board Management
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Nurture and Grow a Strong Board of Directors
Clearly Define the Board’s Responsibilities
Keep Board members Informed and Educated
Keep Your Board Focused and Involved
Ask Yourself
How do you get new Board members plugged in and up to speed?
Organization
 Strong Organizations are the Function of
Boards, Stakeholders & Staff
 Organizations Depend on Quality Leadership
 Organizations Are Dynamic so Stay Ahead of the
Curve
 Healthy Organizations Depend on a Solid
Administrative Foundation
Program/Personnel
 Once the Board Adopts a Program & Budget
- Focus on Execution
 Build Evaluation Activities Into Your Program
 Provide Clear Direction For Management
 Invest in Training for Staff
 Invest in Technology for Staff
 Effective Communication is Key to Staff and
the Organization
One Last Thing!
• Economic development strategies should ideally
be tailored to your region and based on the
unique assets you have that can support
business growth and wealth creation
– Be careful about “cookie cutter” approaches;
– Be careful about comparing your community to others;
• Be patient!
Remember the best home run hitters will tell you they
don’t focus on hitting it out of the park. If you look to
“connect” instead… good things usually happen. You
can score a lot of runs with singles!