Economic development organizations have been using economic development performance metrics for years. However, with differing viewpoints, metrics have gotten muddy and misunderstood.
Lucky for the profession...
In 2011, Atlas put together its first survey of EDO outcomes, to assist EDOs in planning their marketing, business attraction, and business retention programs. In 2014, IEDC published "Making it Count," a guide on metrics for high performing EDOs.
But...
In 2016, the general public is still weary about the value of economic development and what we do in our profession.
This presentation is our take on how economic developers can leverage metrics for their day to day and how it impacts the effect that they have on thier economy.
2. About Your Presenters
Guillermo Mazier – VP, Strategic Accounts, Atlas Advertising
• Former economic developer and tourism marketer for the Costa Rican
Investment and Trade Development Board
• Managed economic development and tourism campaign for Tortugero, CR
• Industry speaker, content strategy and digital marketing specialist
guillermom@atlas-advertising.com
www.twitter.com/atlasad
Drew Varnado – Data Innovation Specialist, IMPLAN Group
• Ph.D. in Agricultural Economics (Applied Economics) from Louisiana State
University
• Published in peer reviewed journals, university publications, and in government
agency reports (Bureau of Ocean Energy Management, forthcoming)
3. Introducing Atlas
1. Denver-based marketing services company, specializing in economic development and
tourism marketing
2. Founded in 2001, 30 employees
3. Has worked with more communities than any other economic development marketing
services firm in the past 10 years: 195+ economic development clients in 47 states and 6
countries
4. Specialize in providing branding, marketing planning, digital marketing, and GIS enabled
websites, all for economic development
5. Pioneered the industry’s first metrics based benchmarking approach for marketing, business
attraction, and business retention: High Performance Economic Development Marketing
6. IEDC’s High Performance Economic Development Marketing Partner
7. Frequent public speaker and lead speaker on benchmarking marketing, business attraction,
and business retention programs, as well as on branding, research, digital marketing,
websites, and GIS.
4. Introducing Implan
IMPLAN is the leading provider of economic impact modeling for all types
of users needing to assess the economic impact of events or projects in
any of the 536 IMPLAN industry sectors (corresponding to NAICS).
IMPLAN’s intuitive, online-platform makes constructing multipliers and
social accounts easy. Whether you are working with zip codes, county,
state, MSA or national aggregates, each subscription includes access to
vast economic and demographic variables including employment,
multipliers, tax impacts and more.
IMPLAN has been developing complex databases and software since
1993.
5. View the Slides, Continue the Dialogue
• Continue the Conversation:
– Follow us on Twitter:
www.twitter.com/AtlasAd
– Tweet questions using hashtag
#ASKATLAS
– Join High Performance Economic
Development LinkedIn Group
• View and share the slides with your
colleagues (available now):
www.slideshare.com/wright0405
6. Today’s Presentation
• Connecting metrics and “moneyball”
• A short history of metrics
• How one community is staying true to their metrics
• How to implement metrics for your EDO
• What tools make it easier for you?
– Benchmarking reports
– IMPLAN software
– Scorecards
• Summary: key takeaways
7.
8. The Moneyball Concept
• True story about Oakland A’s 2002
season
• Team lost all their star players and
must rebuild with limited resources
• GM Billy Beane carries daunting task
of winning against teams with triple the
budget
• Beane recruits intern-turned-assistant
GM Peter Brand who has radical new
ideas about how to win
9. The Moneyball Concept
• The answer: Instead of focusing
on buying players, they needed to
focus on buying wins
• In order to buy wins, they needed
to buy runs
• In order to buy runs, they needed
to acquire players that could get
on base
For Billy, the question was, "Which actions correlate
most strongly to winning games?”
10. History of Metrics for Economic
Development
In 2015, the general
public still doesn’t
know the value of
what we do
EDOs have been
measuring their
performance for years
However, with differing
viewpoints, metrics have
gotten muddy and
misunderstood
In 2011, Atlas put
together its first survey of
EDO outcomes, to assist
EDOs in planning their
marketing, business
attraction, and business
retention programs
2011
In 2014, IEDC published
its “Making it Count”
Metrics for High
Performing EDOs
2014
2016
12. Trends in the Profession That Make
Metrics a Moving Target
1. Digital is changing the way communities are being evaluated, and changing our
roles in the process
2. Workforce drives business location, and opens up new ways for EDOs to
influence economies
3. The debate about whether the profession drives outcomes continues, even as the
Great Recession is in the rear view
4. There are more deals happening in communities, leading to more positive
impressions of EDOs
5. The investor/stakeholder mindset is changing, as
demographics of those involved in EDOs are changing
13. How Can Your EDO Go From .250 to .300?
Ø In the sport of baseball, most respectable players bat an average of .250, or
one hit for every four times at bat.
Ø If a .250 batter is also a good fielder, he can expect to do well in the big
leagues.
Ø But, if he hits .300, or three hits out of 10 at bats, he is considered a star. By
the end of a season, only a hand full of players will be at .300 and be honored
as a star.
Consider this: the difference between the truly great players and the average
ones is only one hit out of 20.
What if we were to apply this same principle to economic
development? How could a community know how to achieve its
margin of greatness? And how do we know if, as economic
developers, we’re making a difference?
14.
15. 4 Ways IEDC Defines Performance Metrics
1. Internal Segment (Employee
satisfaction, funding sources)
2. ED Program Segment (Business
Attraction, Business Retention,
Business Creation)
3. Relationship Management Segment
(Relationships with internal and external
stakeholders)
4. Community Segment (Community well
being, in terms of demographics,
workforce, household income, etc.)
16. Atlas High Performance Economic
Development Focuses on the Relationship
Management Segment (Plus Outcomes from
those Relationships)
1. Internal Segment (Employee satisfaction,
funding sources
2. ED Program Segment (Business Attraction,
Business Retention, Business Creation)
3. Relationship Management Segment
(Relationships with internal and external
stakeholders)
4. Community Segment (Community well being,
in terms of demographics, )
Outcomes for jobs announced
and capital investment announced
18. Source: How High Performance Economic Development Creates Exceptional Communities (2015)
The Spread Between High & Low Performing
Organizations is Staggering, at All Sizes
28. Poll Question:
Did your organization meet the metrics that it set in 2015?
Do you believe that those metrics were not as aggressive?
29. Poll Question:
What is stopping you from implementing metrics for your
role within the organization?
30.
31. Steps to Put High Performance into Practice
1. Discuss your organizational priorities for marketing, business recruitment,
and business retention, and start with a simple score card
2. Assign metrics to certain staff
3. Set a plan to influence that metric for each staff person
4. Make the metrics plan transparent to your stakeholders
5. Execute, report, and adjust
33. Assigning Metrics to Staff
What Metrics Does Each Function Influence?
WEB VISITS
INQUIRIES /
CONVERSATIONS
JOBS
ANNOUNCED
CAPITAL
INVESTMENT
ANNOUNCED
CEO/Executive
X X X X
Business
Developer
X X X
Marketer
X X
Researcher
X
34. Setting A Plan So That Each Staff
Person Can Drive High Performance
BUILD
THIS
35. Make the Metrics Plan Transparent to
your Stakeholders
region2000dashboard.org
36. Make the Metrics Plan Transparent to
your Stakeholders
ncdashboard.net
38. Tools to Check Out!
Public Sources
1. U.S. Bureau of Labor Statistics
2. U.S. Census Bureau
3. Bureau of Economic Analysis
4. State research centers/ED departments
5. Area university research centers
6. Atlas benchmarking tool
Proprietary Sources
1. Moody’s Economy.com
2. EMSI (Economic Modeling Specialists
Intl.)
3. Edward Lowe Foundation
(youreconomy.org)
4. IMPLAN Group
It’s unbelievable how much you
don’t know about the game
you’ve been playing all your life.
- Mickey Mantle
39. The metrics that your EDO
selects will drive the impact
that you have on your
community
The impact that you have on your
community will affect the lives of
your stakeholders, and prove the
value of your EDO
41. • Key Industries
• Employment
• Labor Income
• Output
• Total and Per Capita/Employee
• Mul<pliers
• Specializa<on
• Loca<on Quo<ent
• Shannon-Weaver Index
Understanding Your Economy
44. These changes
are the
DIRECT
EFFECTS
The process
begins with a
change in
Production or
Spending
Household
Income
Leakages
Imports
Personal
Taxes
Savings
Spending on Local Goods and
Services causes INDUCED
EFFECTS
Leakages
Payroll Taxes
In-Commuters
Labor Income
The Direct Output Effects are
applied to the Indirect
Multipliers to calculate the
INDIRECT EFFECTS
Leakages
Imports
Taxes
Profits
How Does Impact Analysis Work?
46. Top Five Sectors: Employment
Sector Employment Output Employee Compensa<on
Real estate 7,696 $958,804,688 $43,405,155
Full-service restaurants 7,267 302,299,438 148,285,294
Hospitals 6,960 990,983,032 453,143,005
Limited-service restaurants 5,343 380,082,947 82,896,782
Local govt, educa<on 4,697 $303,959,503 $262,238,342
47. Top Five Sectors: Output
Sector Employment Output Employee Compensa<on
Hospitals 6,960 $990,983,032 $453,143,005
Real estate 7,696 958,804,688 43,405,155
Wholesale trade 3,861 782,788,757 228,740,952
Offices of physicians 4,384 684,782,288 476,147,156
Relay and industrial control
manufacturing 1,686 $627,366,638 $147,647,827
48. Top Five Sectors: Employee Compensa<on
Sector Employment Output Employee Compensa<on
Offices of physicians 4,384 $684,782,288 $476,147,156
Hospitals 6,960 990,983,032 453,143,005
* Employment and payroll of federal
govt, non-military 2,425 420,883,575 269,351,044
* Employment and payroll of local govt,
educa<on 4,697 303,959,503 262,238,342
* Employment and payroll of local govt,
non-educa<on 3,065 219,606,110 189,266,922
Full-service restaurants 7,267 $302,299,438 $148,285,294
49. Loca<on Quo<ent: Specializa<on
Sector LQ Employment
Relay and Control Mfg 39.1 1,686
Sohware reproducing 16.5 193
Breweries 9.1 386
Aircrah engine 3.7 271
Wineries 3.7 216
Greenhouse, nursery, and floriculture
produc<on 3.2 440
Prin<ng 2.7 1,304
Warehousing and storage 2.1 1,838
Hotels 1.6 2,040
Motor Generator Mfg 1.6 663
61. Moneyball for economic development is all about maximizing limited
resources. It's about optimization, for which the key is to find the
one factor that matters most and focus on optimizing that
62. Key Takeaways
• Think differently about how you should
view metrics for your EDO
• Learn to see the game in a whole new
way
• Depend on information to predict
success
• Measure what matters
• Recruit the right players (i.e. your
board, partners, staff)
Intern-turned-assistant GM Peter Brand
played by Jonah Hill
63. How the Moneyball Story Ends
• A’s finish first in the AL West
• Won a record 20 straight wins
• Won as many games as the Yankees (103)
– Yankees = $1.4 million per win
– A’s = $260,000 per win
• Red Sox take note
– Adopt the A’s moneyball philosophy and win
World Series in 2004 (first time since 1918)
64. Thank you!
Contact information:
Guillermo Mazier
Atlas Advertising
guillermom@atlas-advertising.com
303.292.3300 x 232
Drew Varnado
IMPLAN Group
drew.varnado@implan.com