!0-Step process to prepare an economic development strategy

1. Preparing an Economic Development
Strategy in Ten Easy Steps “Like a well-trained prizefighter,
an economic development strategy
by Charles Eckenstahler
must identify a community’s ‘best
punch.’”
T he truth is, strategic economic
development planning is rather
simple. This article seeks to demystify
Step 3 - What are our problems
and opportunities?
Step 5 - What do we want to be?
Of the ten questions, this one is
One way to answer this question the most difficult. It is most often
preparation of an economic development
is to complete what researchers answered by a carefully worded vision
strategy, simplifying the process into
call a “SWOT” analysis—a list of a statement of a community’s desired
ten easy tasks. By answering simple
community’s economic Strengths, future image. The phrase “Our Future
questions, a group of lay people can
Weaknesses, Opportunities and Threats. Vision is for our community to be the
prepare an economic development
a SWOT analysis might disclose that premier regional location for business
strategic plan for their community.
your workforce is comprised of a high investment in 2015” is an example of a
Step 1 - Who are we? concentration of skilled computer vision statement. This statement tells
operated machine tool makers, or that a big story. First, it proposes that the
yes, we know we are a community of
the farmland designated for industrial community will be the premier location
say, 5,000 people, but do we know
development has no water and sewer for new business investment when
how many employees we have in the
and is not “shovel ready.” compared to surrounding areas. Then
workforce? What jobs they do? Their
it provides a means and a timeframe to
ages and how much/what type of Step 4 - What are our strengths? measure success.
education they have? How many are
Like a well-trained prizefighter, an
unemployed or underemployed? Many
economic development strategy must Step 6 - How do we get there?
of these questions can be answered
identify the community’s “best punch.” The answer becomes a list of specific
by u.S. Census data. according
It might be a unique geographic location actions that either a) eliminates defined
to business site locators, available
affording superior logistic transportation weaknesses, or b) maximizes identified
workforce is one of the top, if not
amenities, or proximity to a nationally strengths. For example, the lack of a
the top, criteria of any firm seeking
rated university. Other times, it might “shovel ready” site can be remedied
to expand or locate a new business
be a young, highly educated available by investment in utilities, roads, and
operation.
workforce, or a recreational or small governmental approvals necessary to
Step 2 - What is our economy? town residential lifestyle. have the site ready for construction
immediately upon receipt of a building
It is usually simple to identify the
permit.
major employers, such as the school
district, hospitals, and city or county
government. However, there is a
large segment of jobs (some estimate
80 percent) provided by small
businesses—and small businesses
are the primary generator of new
jobs. Data from the u.S. Census, u.S.
Department of Commerce and your
state employment agency can be useful
in providing a narrative and quantified
description of the number and type of
jobs in the community. Such indicators
are important for performance
measurement and therefore, knowing
the type of jobs that the community
would like to attract.
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2. Step 7 - What resources do we Step 9 - How much does it cost? Conclusion
have and need? undertaking an economic development Preparing an economic development
Every community has resources. The program costs money, typically more strategic plan is not an overly complex
key is identifying and involving them in than any single organization has within process. There are numerous
developing the economic development their budget. answering this question resources for communities to draw
strategic plan. Prepare a chart listing establishes a budget for each work from, including regional planning
the specific work task, the person or task and identifies who is to provide organizations, MSu Extension, and
organization responsible, the due date, the funding for the task, fostering private consultants. While use of
and the funding source. In our example, collaborative implementation of the outside assistance brings technical
a work task to install infrastructure for strategic plan. skills and greater experience to the
a “shovel ready” site may be assigned process, community representatives
to the city public works department, and Step 10 - How do we know are still required to answer all ten
obtaining necessary planning/zoning when we get there? questions, develop the vision and work
approvals would be a task for the city useful milestones to measure success tasks, and accept responsibilities to
planning department. should be included as part of the complete each work assignment.
strategic plan. Measurement tools and
Step 8 - Who is responsible? a reporting process will “keep the left “This 10 step plan can be easily
The key to successful implementation hand knowing what the right hand is
requires gaining commitments from doing” which is important to avoid implemented by a municipality
specific individuals to complete work duplication and focusing efforts in the for economic development. The
tasks. This “buy-in” is critical to same direction. ‘SWOT’ analysis has been used
success. In our model, the public by organizations with great
works director and city planner would success.”
be named as “responsible parties” and
charged with the duty to complete one –Don Beavers, Manager,
or more specific work tasks.
Village of Caro
ECOnOMIC DEVELOPMEnT STRaTEGIC PLan
Work Tasks
Work Task Description Budget Funding Responsible Completion Progress
Source Party Date Measurement
Tool
Charles Eckenstahler serves on the faculty of the Michigan association of Realtors and Land use Leadership academy, and is a
program trainer for the Michigan association of Planning. you may reach him at pctctecken@comcast.net or by phone at
219-861-2077.
May/JunE 2009 THE REVIEW 27