Lake Erie West 2008 Report Card¹

Elementary Principles - Economic Development 101

Existing Local Businesses

What are we doing to help?

Are We Doing Enough?

• Are We Listening?
• Retention Efforts
  • Infrastructure improvements
  • Skilled, available workforce

Pooling of Effort

• Procurement Efficiencies/Assistance Dealing with
  • Supplies
  • Worker's Comp Rates
  • Accounting
  • Human Resources
  • Legal Matters
  • Governmental Regulations

Are We Facilitating Conversation?

• Encouraging Discussions

New 'Sales' Activity/Recruitment

Weekly Plans

• Who are we going to contact?
• Minimum 25 contacts per staff member per week

Outcomes

• Type of Call (Should have 5 weekly contacts in each category)
  • Introduction/Cold Call
  • Needs Analysis - What is this entity looking for?
  • Further Relationship Building
  • Ask for the 'Sale'/Closing
  • Servicing the Account (See Existing Local Businesses section above)
• What Feedback Did We Receive?
  • Concerns
  • Perceived Benefits
  • Comments
  • Criticisms
  • Objections
  • More Information Requested

Next Steps

• Deliver Requested Information
• Meetings Scheduled
  • In Person
  • Phone
  • Other

TCP Plan

Toledo City Paper has come up with a proposed grade card for evaluating just how we are doing in this economic development area, by monitoring the activity of any claimed economic development entity in our area. This might hold up a mirror to view the entity and allow it to make a difference.

What are we actually selling? What is this Lake Erie West region and what does Northwest Ohio/Southeast Michigan and perhaps even Northeastern Indiana have to offer? Plentiful water. Convenient affordable transportation. Adjacent population mass. An educated work force. Emergent technologies (hey, Newsweek has circled Northwest Ohio as a great leap forward in solar panel technology). Research through educational institutions coupled with government collaboration. Great recreation opportunities and affordable housing.

It’s all here. The question is — will our economic development agencies hold themselves accountable.

First, let’s agree that the only way to enhance and move forward economic development or any other type of sales initiative – after all we are selling this region, Lake Erie West – is by constructing a plan. The need for a plan is twofold. First, it is reviewable by those to whom you might be accountable in terms of the viability of the plan. Are we reaching for enough or could we be more ambitious? Are we contacting enough sure things? That is, entities that already exist in our community, are we doing enough to retain them here?

This brings us to another idea for planning. Why not contact all of the businesses currently within our region and talk to them, directly asking them “How can we help you?” Can we cooperatively work on things such as procurement, the pooling of Workers Compensation costs, the handling of personnel issues including benefits and other reporting on governmental requirements?

These “salespeople” for our region also become “experts” and gather additional information by talking to the businesses in our area. Sector discussions where we highlight all businesses within a certain type and get their feedback, not just the feedback of your competitors.

After the plan is mapped out and reviewed it is important for there to be a mechanism for follow-up evaluation. Is the plan being executed? What is the activity level on pursuing the plan? In short, who did we talk to and what happened as a result of that conversation or communication?

When looking at how these entities are paid, why not pay economic development based upon incentives. After all, most sales organizations work on commission. Certainly there could be some kind of a guaranteed draw, but let’s tie the dollars paid to the benefits received. Community recognition of these benefits and achieving these goals should be highlighted and money should flow to those entities and individuals who are achieving the goals.

Lucas County Organizations

Toledo City Paper interview with Ben Konop :

TCP: Do you think the concept of an economic development agency created to drive the economy forward is outdated? Assuming that’s the problem, what’s the solution?

BK: The problem is there are nine economic development entities in Lucas County, most of which have some public funding component, though the Regional Growth Partnership and Chamber of Commerce are private. But to have nine separate economic development entities is redundant and makes a confusing web of bureaucracy for someone who wants to use the system.

TCP counted the them for you: In Lucas County, there are between 9 - 10 development organizations:

• Lucas County Port Authority
• Regional Growth Partnership
• Chamber of Commerce
• Toledo Metro Area Consortium of Governments
• Lucas County Improvement Corporation
• Northwest Ohio Regional Economic Development Board (NORED)
• City of Toledo
• City of Maumee
• City of Oregon
• City of Sylvania Economic Development arms

References

¹ Mar 5, 2008 Toledo City Paper article.