Eco Devo Strategic Planning Flashcards
Strategic Planning is
The art & science of strategic change-making in which leaders proactively invent their community’s economic development future.
It provides a living vehicle for leaders to think strategically, make sound decisions, focus efforts, and develop consensus for collaboratively solving problems.
What questions does strategic planning address?
Where are you and what is your potential? Where do you want to go in the future? Why do you want to go there? What do you want to do? Who will help you get there? How should you go about getting there? What will success look like?
What is the call to action for strategic planners?
Call to explore untapped potential (help inventors commercialize ideas; help entrepreneurs launch successful enterprises; help employers grow operations; help individuals achieve meaningful careers; help investors maximize ROI)
Call for continual adaptation (look for the opportunity for creative reinvention to meet the ever-changing needs of communities / citizens)
Call for the ongoing pursuit of excellence (deliberate efforts; high expectations; inventive creativity; continual improvement; striving for excellence)
What are the benefits of strategic planning?
1) Shapes a community’s future
2) Defines a community’s purpose
3) Provides a 1-stop shop information base
4) provides realistic appraisal
5) Lays the foundation for effective & practical economic development efforts
6) Provides framework for mutually accepted goals and common agenda
7) Balances community goals with realistic assessment
What is the aim of strategic planning?
To create a living tool and sustainable process for ongoing community innovation and transformation. It should lead to strategies that are: Compatible Feasible Implementable Change-making Innovative
Strategic Planning is a ___________, not an event.
Process
What are the 11 steps to the Strategic Planning Process?
1) Organize
2) Create Vision
3) Assess
4) Identify Issues, Goals & Strategies
5) Prioritize
6) Publicize
7) Develop Action Plans
8) Implement
9) Monitor, Evaluate & Implement
10) Retool, Adjust & Implement
11) Publicize, Progress & Outcomes
What is consensus and what does it involve?
Consensus is support, justification and validation for the strategic plan
Building consensus requires all stakeholders to be involved and engaged; fulling informed and empowered to participate; it requires negotiation to find common ground in order to solve problems or pursue opportunities
What is the main goal of economic development?
To improve the economic well-being of a community through efforts that entail job creation, job retention, tax base enhancements and quality of life.
Who are stakeholders?
Individuals, groups, organizations with a vested interest in the overall future of the community or project.
What are some common characteristics when selecting stakeholders in the planning process?
Well-respected Known for getting things done Successful in launching new ventures Able to recruit others Reputation for being fair, just and ethical Genuinely respectful of others
While the planning process needs to be inclusive, it also needs an ____________ & _____________ leadership team to champion the process.
Accountable & Transparent
The responsibilities of the planning leadership team
Determine the implementation structure
Take responsibility for the process deliverables
Make final approval of goals, strategies, projects & programs
Raise funds to support the costs of the strategic planning process
The Advisory Team is made up of whom?
Subject matter experts called upon to examine various aspects of an issue, provide advice on strategic and technical matters & make recommendations to the core leadership committee.
Why are Task Forces used in the planning process?
They form the work groups to examine specific issues, support specific work activities or execute specific parts of the plan.
They are the ‘meat & potatoes’ of the process and do the work.
Why are consultants used in the planning process?
Design the planning process Facilitate the implementation Conduct data research / analysis Survey and gather input Facilitate consensus building Bring outside perspective / objectivity Provide impartial expertise Offer new ideas / insights Validate / Confirm / Refute suggestions
Hiring a consultant is ____ a substitute for community involvement.
Not
What information should be conveyed to the public through the strategic planning process and when?
Throughout the process from inception, during development, through implementation and during all future phases. Overall plan Key milestones Progress reports Successes of the plan Obstacles to implementation
One of the main challenges to strategic planning?
Building Consensus
What are the steps in the Consensus Organizing Model?
1) Bring all stakeholders to the table
2) Create a purpose statement to focus efforts
3) Ensure all participates have the same information / knowledge base
4) Let everyone have a say
5) Identify next steps to maintain momemtum
Resolving __________ is core to enabling the type of collaboration that is required for successful and strategic change-making
Conflicts
Assessment of the local economy determines
1) Challenges being experienced
2) Competitive advantages of the community
3) Obstacles to attaining eco devo goals
4) Environments in which the economy exists
5) Local resources available
6) Opinions and perceptions of the community
Information obtained from studying the local economy can be used for
1) Identifying assets and liabilities that impact development
2) Forecasting local economic trends
3) Monitoring economic performance over time
An economic development profile is only a ___________ of a local economy.
Snapshot
The structure of the economy tomorrow may not resemble its structure today.
Population characteristics and trends provides insights into
The potential workforce pool
The nature of the local market
The potential need for goods / services
The ______________ is one of the most important resources available to investors in the community
Workforce
_______________ are typically the leading source of income for local government.
Property Tax Revenues
Business climate reflects
How supportive the local economic environment is to businesses.
How can quality of life be described?
The cultural, historical, recreational, natural and other characteristics of a community.
No universal definition
Subjective
A community’s potential for economic development depends on what 3 infrastructures?
1) Human Capital Infrastructure
2) Physical Infrastructure
3) Public Policy Infrastructure
What are the 4 primary ways to gather information in assessing the community?
1) Collecting secondary data from federal, state or local sources (quantitative data)
2) Surveying local businesses / residents (qualitative data)
3) Holding focus groups with leaders (qualitative data)
4) Conducting 1:1 interviews with key stakeholders (qualitative data)
Qualitative data helps
Clarify what the quantitative data reveals
Local perception
____________ are the basic reporting units for federal and state information.
Counties
What are the shortfalls of data analysis?
1) Not geared to the Local Level (the smaller the geographical area, the less data is available)
2) Datedness (info constantly changes)
3) Standardizing (different classification of data)
4) Geographical changes (areas covered change over time)
5) Real vs. Nominal Values (Real dollars = inflation-adjusted data; Nominal dollars = no inflation adjustment)
6) Inconclusive
The 4 main types of surveys
Telephone interview (hi response rate but difficult to schedule)
In-person (hi response rate but cost more to conduct)
Mail/Fax (low response rate, slow but less expensive)
E-mail/Web-based (low response rate but significantly less expensive)
The smaller the sample size the _________ the reliability of the information obtained.
Lower
Why would you want to include focus groups in a conducting a survey?
To vet out perceptions on the issues/topics/questions.
What is trend analysis and what are 2 ways to calculate trends?
Trend analysis explains how factors change over time. Absolute Change (difference b/w 2 numbers) Percentage Change (rate of change over time)
What is economic base analysis?
It’s a theory that says activities in an area are divided into basic and non-basic. Basic industries are those exporting from the region and bringing wealth from outside, while nonbasic (or service) industries support basic industries.
What does the Location Quotient (LQ) compare?
It compares sectors of the local economy to that of a larger economy to determine concentration, competitive advantage, underrepresentation or growth.
It assesses industry concentrations based on employment by industry.
What are the 3 LQ results and what do they mean?
1) LQ >1 = local economy has a concentration of the industry compared to the larger reference; competitive advantage
2) LQ <1 = local economy is less specialized in the industry; community importing goods / services from outside the economic base
3) LQ = 1 = community’s concentration of industry is on par with larger reference
For industries where LQ reveals a competitive advantage, what are some logical next steps to evaluate?
1) Determine whether industries are growing / declining over time
2) For industries in growth mode, how does the LQ compare with peer communities
Shift Share Analysis includes what components?
National Growth (change in the national economy) Industrial Shift (identifies industry growth/decline) Competitive Share (identifies competitive advantage of an industry)
The Prosperity Index compares
Job Growth to Wage Growth
Input Output Analysis
Assesses links b/w industries
Reveals extent to which a change in demand affects local output, income & employment
Develops multipliers that estimate resulting jobs, income, output
Suppliers in one industry are often _____________ in another industry.
Consumers
What are Industry Clusters?
Inter-connected businesses who find it beneficial to locate in close proximity to each other, to share information, resources, technology, employment, services & activities.
Why are industrial clusters important to the nation’s economy?
- Higher wages
- Higher productivity
- Higher business creation
- Higher competitiveness for talent & investors
- Higher innovation among existing firms
What is the multiplier effect?
The principle behind economic impact analysis. It’s the increase in employment in an export industry that leads to an increase in employment in the non-export industry.
The basis for the theory is that a positive change in export industries increases the dollars circulating in the local economy, which increases the demand for the products and services provided by non-export industries.
What are some of the ‘key ingredients’ that make an industry cluster?
- Higher educational institutions that develop and transfer knowledge
- Anchor companies that transform knowledge into new products or services
- Suppliers that support the anchors
- Marketing and distribution channels to deliver products to customers
- Productive interrelationships among firms for knowledge creation and knowledge sharing
What steps are involved in identifying and measuring industry clusters?
- Define the Region
- Determine Criteria (based on community vision)
- Inventory Assets (hospitals; universities)
- Evaluate Economic Data (basic or non-basic; growth rate or export industries; supply chain relationships, etc)
- Map Groupings (group key exporting industries)
- Gather Firm Input (Add’l info to refine data & collect data on business climate)
- Analyze Competition (how cluster compares to others; competitive position)
Every community’s competitive position is a function of what?
Internal and External factors
Strengths - internal - current condition - give a community a competitive advantage
Weaknesses - internal - current condition - put a community at a competitive disadvantage
Opportunities - external - potential future condition - chances to advance an economy or lead to future success
Threats - external - potential future condition - factors that could have negative consequences for an economy
A SWOT Analysis will help determine:
- Existing and potential competitive advantages
- Challenges in the economy
- Obstacles to attaining economic goals
- Environments in which the economy exists & impact
- Resources available to implement plans
Why is creating a community vision so important in the strategic planning process?
A vision statement provides the foundation upon which all economic development activities will be built.
It should act as the beacon that illuminates the road ahead, guiding the community’s journey into the future.
It encompasses common values the stakeholders believe are important.
It’s a call to action for the community.
What is the purpose of a mission statement?
It conveys the image and core reason for the entity’s existence. It expresses the group’s purpose, activities and values.
Define Goals
Goals are the outcome you want to achieve. They represent the overall vision and desired results of the economic development planning process.
They communicate the intent of economic development efforts.
Qualitative
Define Objectives
They set performance standards and define what is to be accomplished.
They are directional statements that support the vision and the steps taken to reach the goals.
Quantitative, specific and easy to measure.
Define Strategies
Strategies are the general direction or plan that determines how to achieve the established economic development goals and objectives.
Answers ‘How do we get there?’
Realistic and built around SWOT.
How is Force Field Analysis used in prioritizing goals?
Each goal is analyzed by considering the driving forces that favor change and the restraining factors that resist change. This helps determine the feasibility, associated cost & resources required for each goal.
SMART Objectives meet what criteria?
Specific Measurable Action Oriented Realistic Timely
Strategies should be based on:
- Goals and Objectives
- Assets
- Available Resources
- Constraints
- Desired direction for economic growth
What is the lead agency’s responsibility in the strategic planning process?
They agree to be the lead organization and serve as the primary implementer / coordinator for a particular goal, objective or strategy.
They aren’t necessarily solely responsible, but do organize and motivate efforts to achieve certain goals or objectives.
Determine what action steps will be taken, the timeline for each and the proper designation of responsibility.
What are the 3 stages of the strategic planning project cycle?
1) Identification
2) Assessment
3) Implementation
What criteria should be reviewed when considering program or project alternatives in strategic planning?
- how well does it meet the specific goals
- impact on the local economy
- timeline to complete the project
- operating expenses, financial requirements, opportunity costs
- support from public officials, business leaders and residents
- available technical skills, infrastructure, knowledge
How are cost-benefit analysis and fiscal-impact analysis different?
Cost-benefit compares costs associated with a project or program with the benefits arising from the project. It’s useful in comparing alternative projects and determining the most efficient use of resources.
Fiscal-impact compares the public costs and benefits of a project from a local gov’t perspective.
What is net present value (NPV)?
NPV is the result of calculations used to find today’s value of a future stream of payments.
If the net present value is positive for the calculation (meaning the benefits outweigh the costs), the action or decision will generally be a good investment. If negative, the opposite is likely true.
Define Time Value of Money
A dollar today is worth more than a dollar tomorrow due to its earnings potential in the interim.
This is because money can grow only through investing. An investment delayed is an opportunity lost.
What question does the Cost Effectiveness Analysis ask?
What is the least costly way of achieving an objective?
It considers the costs of a project rather than the benefits.
Define Action Plans
The physical actions to implement a strategy.
Which step/stage is the most critical in the economic development planning process and why?
Implementation Stage
Strategic Planning is all about executing new initiatives in order to move the community forward.
Prior steps are useless if the plan isn’t put into action and adequate resources aren’t allocated to its implementation.
Successful implementation of the strategic plan depends on:
- Adequate resources
- Flexibility for changes as needed
- Quick problem resolution
- Coordination among agencies involved
- Defined responsibilities
What is the best way to keep a strategic plan alive?
By keeping it visible and alive in the minds of the community.
What are the objectives of monitoring and evaluation in strategic planning?
- promote effective implementation of the plan & projects
- ensure goals & objectives are met
- minimize delays by detecting problems early on
- provide feedback for solving problems
- determine if plan revisions are warranted
They also help to:
- ensure projects are on track
- justify the costs involved
- determine if adjustments need to be made
- enable promotion of successful outcomes
- sustain community support
True of False
Monitoring is essential for carrying out the evaluation of projects.
True.
List the 7 key reasons for measuring performance:
- What gets measured gets done
- If you don’t measure results, you can’t tell success from failure
- If you can’t see success, you can’t reward it
- If you can’t reward success, you’re probably rewarding failure
- If you can’t see success, you can’t learn from it
- If you can’t recognize failure, you can’t correct it
- If you can demonstrate results, you can win public support.
When should program evaluation occur?
Before, During and After implementation.
Why are pre-implementation evaluations conducted?
- to test the feasibility and impact of the planned projects
- assess the allocation of resources to ensure its adequate
- determine baseline info for future benchmarking
- identify specific metrics to measure and define success
Why should on-going monitoring be conducted?
- to measure progress of goals & objectives
- to assess project relevance & effectiveness
- provide insights on needed adjustments to the plan
Why are post-implementation evaluations conducted?
To determine how the projects or programs have performed in terms of costs, timing, benefits and in meeting initial goals.
_____________, or the extent to which a program service is responsible for a certain outcome, is a major problem of all evaluation techniques.
Causality
Program success rests on what 4 performance factors?
- Organizational efficiency & effectiveness
- Economic impact
- Customer satisfaction
- Return on investment
What do measures of organizational efficiency and effectiveness assess?
Activities or productive output for a program.
How many people have been served through the program;
How well an organization is managed;
What does economic impact measure?
The outcome of a project.
Determines whether the community is better off as a result of the program or project.
Uses benchmarks based either on the situation prior to starting the program or project, or on a preset standard or best practice.
Customer satisfaction is measured for what reason?
To determine the quality of the services provided by the program or project.
Questions include: experience of staff; comprehension of client needs; qualify of service; willingness to help; location/hours of services; processes, etc.
Why are Return on Investment measures important?
They are critical for communicating the plan’s progress, sustaining current support and recruiting future support.
Be careful not to assume causality, but measure correlations.
(i.e. ratio of program expenditures per actual jobs created)
Define Benchmarking
The process of comparing project data to measurable baseline indicators or ‘benchmarks’ in order to measure the achievement of or progress toward meeting goals and objectives.
Comparing project performance & outcomes to pre-established standards.
What are the 3 types of Benchmarks?
Baseline Benchmarks - use prevailing situation before the start of the project as the basis for comparison. It compares the prevailing situation with the changes resulting from the project.
Pre-Established Standards - based on accepted levels of performance, often set by a funding or regulatory body (i.e. CDBG job creation standards).
Best Practice Benchmarks - come from other areas or organizations that have already successfully undertaken initiatives or programs with similar goals or objectives. It compares those standards to your situation & outcomes.
What are the benefits in developing a pre-disaster economic preparedness plan?
- it prepares a community for disaster situations with a focus on the business community and the local economy
- it defines the roles and lays out action steps to take
- it allows a community to respond more quickly and efficiently to help jumpstart the recovery process and limit the disaster’s negative impacts
List the 7 action steps in planning an economic preparedness plan.
- Identify lead organization to facilitate planning process
- Identify all key stakeholders & hold kick-off meeting
2A - Create stakeholder groups
2B - Establish goals and timelines - Evaluate potential impact of a disaster
3A - Identify community assets
3B - Perform economic vulnerability analysis
3C - Conduct scenario planning for redevelopment - Develop action strategies and steps
- Develop a communications plan
- Develop list of possible funding sources
- Follow up with the plan
7A - Integrate with other relevant plans
7B - Monitor, evaluate and update the plan
How long after a disaster should a post-disaster strategic plan be started?
3 - 6 months is recommended in order to take advantage of the urgency surrounding rebuilding efforts and the existing momentum within the community.
List the 3 action steps in planning a post-disaster economic recovery plan.
- Conduct a post-disaster economic impact study
- Identify lead organization
2A - Identify key stakeholders
2B - Identify roles & responsibilities of stakeholders
2C - Establish working groups to gather data
2D - Produce a complete economic analysis - Create a plan with action strategies
3A - Coordinate plan with effective communication strategies
Why should a community conduct a post-disaster economic impact study?
It provides intelligence for local decision-makers and support any request for Congress to appropriate funds for rebuilding/recovery.
It assesses both physical damage and economic damage to the economy.
