Rethinking Retention: Creating 21st Century R

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Rethinking Retention Creating 21st Century RE
Programs

• Presented to
• Business Retention and Expansion International
  2006 Annual Meeting
• Presented by
• Phillip D. Phillips, Ph.D./CEcD
• Greater Omaha Chamber of Commerce
• May 18, 2006

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The Way We WereThe Greater Omaha
ChamberAmbassador Business Call Program
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Purposes of the Ambassador Program

• To retain and expand businesses, jobs and
  investment in the Omaha area by
• Providing proactive contact with leading local
  businesses.
• Determining the level of satisfaction of Omahas
  business community with the local business
  climate.
• Improving the business climate through input to
  programs.
• Assisting businesses with one-on-one follow up on
  specific company needs.

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History and Goals of the Ambassador Program

• Created in 1995 as part of the Target Omaha
  program
• Conducted annually
• All surveys conducted in person
• Volunteer Ambassadors conduct most surveys
• Goal Contact 400 companies each year
• Goal Immediate response to needs and
  opportunities provided by Chamber staff and allies

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Benefits to Ambassadors

• Improve the business environment of the community
  in which their businesses operate.
• Gaining a better understanding of Omahas
  business community and climate.
• Making business contacts by meeting key business
  decision makers.

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The Ambassadors Commitment

• Attend orientation program.
• Call each assigned company and arrange an
  interview.
• Conduct interviews with at least 4 assigned
  companies.
• Return survey results promptly.
• Contact chamber staff regarding unusual issues or
  opportunities discovered in an interview.

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The Chambers Commitment

• Assign companies to be interviewed and provide
  contact information
• Provide letters of invitation to companies to be
  interviewed
• Provide training and supporting materials
• Provide general follow-up to all companies
  surveyed
• Provide detailed assistance as needed to
  companies on specific issues
• Inform Ambassadors of the outcome of interviews

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Findings 1995 to 2005

• The Omaha Areas Assets
• High labor force quality productivity and
  skills
• High quality of life Midwestern values,
  family environment, cost of living, education,
  and health care
• A diverse and stable economy
• Ratings of the availability of cultural
  activities have been rising
• Area businesses are highly satisfied with local
  utility services (electric, gas, water, sewer)
• Size and quality of the local customer base

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Findings 1995 to 2005

• The Omaha Areas Liabilities
• Labor force availability
• Government tax levels, especially property
• National image/lack of image
• Air connections, especially to the coasts
• Growing number of competitors/small local market
• Hesitancy to accept new businesses/ideas/products
• Climate/culture/outdoor recreation opportunities

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The Way It IsA World of Challenges to RE
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The Way It Is A Multiplicity of Demands

• Impacts of information technology - on the
  businesses we serve, how we communicate with them
  and how successful economic development
  organizations operate.
• More sophisticated and creative use of business
  incentives and increasing challenges to their
  use.
• Increased concern for environmental and growth
  management issues smart growth, sustainable
  development, impact assessment, etc.

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The Way It Is A Multiplicity of Demands
(continued)

• More sophisticated targeting of development
  opportunities industry clusters, etc.
• Emphasis on retail and service activities as well
  as manufacturing and other basic industries.
• Increasing focus on serving minority and
  disadvantaged communities.
• Developing better cooperative relationships at
  the local, regional, state, national and
  international levels.

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The Way It Is A Multiplicity of Demands
(continued)

• External Trends
• Demographic shifts
• Immigration
• Globalization
• Terrorism
• And so much, much more

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The Way It IsA Multiplicity of Demands
(continued)

• Increasing program and funding demands requiring
  a broader portfolio of revenue sources
• Membership dues
• special funding campaigns,
• Government grants and contracts
• Private foundation grants and contracts
• Fees for service

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The Way It Is

• An unstable business environment
• Downsizing
• Rightsizing
• Offshoring
• Acquisitions
• Divestitures
• Bottom line Here today, gone tomorrow applies
  every business in your region

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The Way It Is

• Key components of a 21st century business model
• Intellectual property/better mousetrap
• Management team
• Strategic partners
• Source of capital
• Marketing channels
• Exit strategy

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The Way It Is

• What a 21st century business model seeks to
  avoid
• Employees Avoid long term commitments by
  contracting out non-core functions and using
  contract, contingent and part time employees
• Facilities and equipment Lease, never own
  contract out as much as possible
• This scenario does not fit well with how the
  success of economic development efforts is
  measured!

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The Way We are BecomingThe Evolving Scope and
Shape of the Omahas BRE Program
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Organizational Structure

• Creation of an Economic Development Council
  emphasizing
• Wider involvement of staff, allies and volunteers
• Broader mandates and more varied work program
• Action-oriented call program
• Outreach to non-local corporate headquarters
• More focus on specific sectors (insurance,
  defense, retail, bioinformatics, etc.)
• Greater emphasis on entrepreneurship business
  creation (CRE?)

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The Ambassador Program(Existing Businesses
Target Advisory Group)

• Continuity with the past mission and goals
  enhanced by
• Better data base systems and support
• Orientation to actionable items
• Data bases focus on strategic issues
• More staff involvement in survey process

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The 2006 Ambassador Survey

• Major Survey Sections
• General company information
• Business climate opinions
• Business climate ratings
• Work force
• Expansion plans
• Additional assistance

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Headquarters Target Advisory Group
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Headquarters Target Advisory Group

• Mission
• Encourage the continued operation and growth of
  Omaha facilities of companies with home offices
  outside of the Omaha area.
• Program
• Schedule and conduct headquarter visit trips with
  a focus on providing information on the new
  Nebraska Advantage program.
• Be on constant alert for leads on non-Omaha
  companies that are candidates for a new Omaha
  location
• Be on the alert for and deal proactively with
  corporate acquisitions and realignments.

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Headquarters Visits2005 - 2006 to date

• 3M Existing Maplewood MN
• ADT Security Systems Existing Aurora CO
• Ady International Consultant Park Ridge IL
• Aon Risk Services Existing Chicago IL
• Array Services Group Prospect Sartel MN
• Bank of the West Existing San Francisco CA
• Boeing Corporation Prospect Chicago IL
• Cargill Existing Wayzata MN
• CH2M HILL Prospect Englewood CO
• Corporate Real Estate, Inc. Consultant Eagan MN
• CSG Systems Existing Englewood CO
• Cushman Wakefield Consultant Los Angeles CA
• General Atomics Prospect San Diego CA
• KPMG Consultant Chicago IL
• Location Management Services Consultant Mission
  Viejo CA
• New York Life Insurance Co. Existing New York NY
• Ocean Systems Engineering Existing San Diego CA
• Pacific Life Insurance Company Existing Newport
  Beach CA
• PayPal Existing San Jose CA

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Entrepreneurship Target Advisory Group
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Entrepreneurship Target Advisory Group

• Mission
• To improve Omahas climate for establishing and
  growing new businesses.
• The Omaha area is already served by many
  governmental, non-profit and for-profit
  entrepreneurial assistance groups.
• The Entrepreneurship Target Advisory Group will
  facilitate cooperation, coordination and service
  delivery among these existing organizations.
  entrepreneurs.

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Entrepreneurship Target Advisory Group

• Work Plan
• Review entrepreneurial support services already
  in place
• Conduct a gap analysis to determine what services
  are lacking
• Bring entrepreneurship service providers together
  on a regular basis
• Celebrate entrepreneurs in the Omaha community.
• Enlist the services of the Gallup organization to
  provide input on successful model case studies.

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Entrepreneurship Target Advisory Group

• Work Plan (continued)
• Support legislation to create a friendlier
  business environment for entrepreneurs in
  Nebraska.
• Collaborate with the Education and Workforce
  Development division of the Chamber to better
  prepare employers, employees, and independent
  workers.
• Assist high performance entrepreneurs - those few
  companies having the potential to become the
  major sector employers.