Washington County Economic Development Roadmap A PerformanceBased Plan to Guide Economic Development

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Washington County Economic Development RoadmapA
Performance-Based Plan to Guide Economic
Development, 2005-2007

• FINAL PLAN REPORT
• November 4, 2004
• Prepared for the
• Washington County Community Improvement
  Corporation
• By Donald T. Iannone Associates

Washington Countys private and public sector
leaders and citizens working together to
strengthen the Countys economic competitiveness
and increase community prosperity.
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Table of Contents

• Section Page
• I. Purpose 4
• II. Operating Principles 5
• III. Work Process 6
• IV. Strategic Assessment Summary 7
• V. Roadmap Strategic Directions Vision and
  Mission 10
• VI. Economic Vitality, Business and Job
  Development Component 14
• VII. Competitive Economic Development Environment
  Component 18
• VIII. Washington County ED Network Organizational
  Strategy 22
• IX. Implementation Schedule 31
• X. Appendices 33

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Washington County, Ohio Map
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I. Purpose
Purpose

• This report describes Economic Development
  Roadmap for Washington County, Ohio.
• The Roadmap reflects the results of a leadership
  survey, a series of stakeholder meetings, and a
  strategic planning retreat in October that
  assembled the Countys key public and private
  stakeholders for economic development. This is a
  starting plan for Washington County to focus its
  future economic development efforts.
• The centerpiece of the Roadmap is the creation
  of a shared leadership vehicle for economic
  development in the County called the Washington
  County Economic Development Network. The
  Networks central focus is to build teamwork and
  increase focus among countywide and local ED
  organizations.
• Unlike earlier generations of the ED
  organizations, the Network is designed to be
  flexible, innovative, collaborative,
  customer-focused, and performance-based. More and
  more ED organizations nationwide are
  concentrating on building networks to solve
  complex ED problems and develop new opportunities
  for their areas. This is a logical step for
  Washington County as it moves forward to advance
  competitiveness and prosperity across the
  Countys businesses and citizens.

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II. Operating Principles
Operating /Principles

• Washington County economic development leaders
  will follow these operating principles to make
  their County more competitive for future economic
  development
• Countywide, total system view.
• Limited agenda.
• Performance and results driven. One set of team
  results and outcomes everyone commits to.
• Collaboration and teamwork.
• Forward looking, and not focused on the past.
• Private-public partnership.
• Networks and not hierarchies.
• Decision-oriented.
• Knowledge and information based.
• Cost effective efficient use of funds to the
  stakeholders.
• Lack of duplication of services and all efforts.
• Team approach to servicing the customer one
  system from the customers point of view and
  contact.

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III. Roadmap Work Process
Work Process

• Key Action Steps
• Washington CIC pulls together public and private
  sector stakeholders to fund the Roadmap.
• CIC works with stakeholders to define a limited
  set of issues to be given attention.
• DTIA conducts Leadership survey to assess
  priorities and action options.
• Strategic planning retreat held on October 12,
  2004.
• Roadmap report prepared by DTIA for CIC and its
  partners.
• Roadmap reviewed and adopted with agreement to
  move forward with plan implementation.

Washington County ED Roadmap Planning Process
Washington County ED Roadmap
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Washington County Economic Base Influences
Strategic Assessment
Several factors influence the competitiveness of
Washington Countys economic base. The role of
the Countywide ED strategy is to work on the most
important influences that are, at least in part,
within the control of Washington Countys ED
service system.
Strategic Issues Trends for Countys
Driving Industries
Foreign competition Labor market
requirements Technology developments Regional and
County cost realities Industry growth
potential Other industry-specific factors
Washington Countys Economic Base
Ohios Business and Economic Climate
National Global Trends
Tax policy Business regulations State
incentives Ohios image Other state factors
Global growth forecast U.S. growth forecast U.S.
Federal policy and regulations Other factors
Wash. County Economic Climate
Development Resources
Workforce/talent Incentives/financing County
image Local business costs Cooperation and a
plan Other factors
Greatest control is here
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IV. Strategic Assessment Overview Results
Strategic Assessment
Action
Main Discovery
Review Existing Plans And Studies
No Current Countywide Plan In Place Guiding
Economic Development
Washington County Leadership Survey
Public and Private Leaders Agree on Countys
Future Economic Priorities
Leadership Meetings, Decisions on Final
Plan Content and Directions
Focused Action Agenda That Is Implemented Is Most
Important
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Washington Countys Starting ED Strategy
Environment
Strategic Assessment

• County economic base that remains reliant upon
  its existing manufacturing base and that is
  growing slowly in terms of businesses and jobs.
• Limited collaboration among economic development
  players within Washington County.
• No unifying strategy to guide community level
  and countywide economic development efforts.
• Limited shared vision of the Countys economic
  future and future growth potential.
• Several valuable economic development
  organizations EDOs) that have some valuable
  assets and have made some progress in their work.
• Lack of systematic monitoring of ED organization
  and program performance. Results of local efforts
  are not clearly understood. Need for a better
  definition of the return on investment (ROI) of
  public and private economic development efforts
  across the County.
• A growing desire among local and countywide ED
  groups to work together and make a greater
  difference.
• Growing competition for ED opportunities from
  surrounding counties, and an increasing number of
  national and international locations.

Current Economic Development Environment
Washington County Economic Roadmap
Future Economic Development Environment
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V. Overall Strategic Plan Thrusts and Outcomes
Strategic Direction
Washington Countys future economic development
hinges on future progress made in two strategic
thrust areas creating a competitive environment
for economic development and stimulating
increased economic vitality, and quality business
and job growth and development. The two thrusts
go hand-in-hand in improving the Countys future
economic outcomes.
STRATEGIC THRUST Creating a Competitive Environme
nt for Economic Development
STRATEGIC THRUST Stimulating Economic Vitality,
and Quality Business and Job Growth and
Development
INTENDED WASHINTON COUNTY OUTCOMES Increased
Business Competitiveness, Higher Quality Job
Development, Increased Citizen Prosperity and
Wealth Creation, Improved Economic Development
Organization Performance and Accountability
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Key Priorities for the Washington County
Economic Development Plan
Strategic Direction

• The Economic Development Roadmap recommends a
  focus on a limited number of key economic
  development issues facing the County. In this
  way, Washington Countys economic development
  organizations stand a greater chance of being
  successful. The Roadmap will focus on these three
  major issues
• Equip Washington County with a collaborative,
  performance-based, and accountable organizational
  strategy for economic development.
• Focus existing economic development resources and
  organizations on the most important priorities
  related to increasing the Countys overall
  economic vitality and its ability to create high
  quality businesses and jobs.
• Focus existing economic development resources and
  organizations on the most important priorities
  related to increasing the competitiveness of
  Washington County as a future location for high
  quality economic development.

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Washington County ED Roadmap Vision Statement
Vision and Mission
Grow Washington County as a high-quality location
for people to live, work, and play, and where
businesses can prosper and gain a competitive
edge based upon quality, productivity, and
innovation in todays global economy.
The vision statement defines the Roadmaps future
expectations about economic development in
Washington County. The vision relates to the
area, its communities, businesses, and citizens.
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Vision and Mission
Washington County ED Roadmap Mission Statement
Washington Countys Economic Development Roadmap
defines the key action steps and tools that will
help make businesses, local communities, and
residents more competitive for high-quality
economic development, increasing their long term
prosperity and economic well-being.
The Roadmap gives special attention to
accomplishing this mission in a performance-based
manner so that economic development results and
the value and return on investment of these
results is clearly understood in Washington
County.
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Economic Vitality
VI. Economic Vitality Improvement Goals
Goal 1 Strengthen the competitiveness of existing
Washington County businesses by offering new
advantages and resources to these employers.
IMPACT Improved economic development results for
Washington County communities, businesses, and
citizens.
Goal 2 Attract selected new high quality
businesses to Washington County by offering new
advantages and resources to these employers.
Goal 3 Stimulate and assist the growth of
new business startups in growth industries
in Washington County by creating
favorable conditions and resources for these new
ventures.
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Economic Vitality
Strategic Thrust Stimulating Economic Vitality
A manageable action agenda must be adopted in
each of the four priority areas. Washington
County officials should focus their attention,
leadership, and investments to achieve results
in these areas.
65 of resources and attention here
15 resources and efforts here
10 resources and efforts here
Four priorities will be addressed under
Stimulating Economic Vitality. Existing business
competitiveness is clearly the top priority.
10 resources and efforts here
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Economic Vitality Performance Measures
Economic Vitality

• The following measures are suggested as lead
  performance measures for tracking the progress,
  effectiveness, and impact of the Economic
  Vitality Component of the Roadmap
• Business investment in new or expanded
  facilities, equipment, and machinery.
• Ratio of private business investment to public
  sector economic development investment.
• Job quality, as measured by average annual pay
  level.
• Existing jobs upgraded.
• New jobs created.
• Existing jobs retained.
• New payroll generation.
• New local tax revenue generation.
• Number of existing businesses successfully
  assisted.
• Number of new businesses successfully attracted.
• Number of new entrepreneurial starts assisted.
• Number of ED projects completed in distressed or
  redevelopment areas.
• Successful businesses assisted, jobs, payroll in
  Washington Countys target industries/clusters.

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Action Strategy Existing Business Major Account
Management Model

• Existing Business Competitiveness Transform
  existing business retention and expansion efforts
  into a team-based Existing Business Major Account
  Competitiveness Initiative.

Future Coordinated, Focused Model
Existing Fragmented Efforts.
Coordinated, Prioritized Approach
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Competitive Environment
VII. Competitive Environment Improvement Goals
Goal 1 Strengthen Washington Countys workforce
to meet the local growth needs of existing and
new employers.
IMPACT Improved economic development results for
Washington County communities, businesses, and
citizens.
Goal 2 Strengthen Washington Countys
overall technology, transportation, and
other Infrastructure foundations for economic
development.
Goal 3 Strengthen the marketing of the County as
a business location for high-growth and
value-added companies and jobs.
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Strategic Thrust Creating a Competitive
Environment
Competitive Environment
A manageable action agenda must be Adopted in
each of the three priority areas. Washington
County officials should focus their attention,
leadership, and investments to achieve results
in these areas.
30 of resources and attention here
30 of resources and attention here
Three priorities should be pursued under Creating
a Competitive ED Environment. Each is important
in its own right and also has important linkages
with the other priorities.
Marketing program aimed at existing and out of
town businesses.
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Competitive Environment
Competitive Environment Performance Measures

• The following measures are suggested as lead
  performance measures for tracking the progress,
  effectiveness, and impact of the Competitive
  Environment Component of the Roadmap
• Workforce, Education-Economic Development
  Priority
• New partnerships formed to advance the connection
  between workforce development, education, and
  economic development.
• Workers trained and employer and public sector
  dollars invested in the training.
• Incumbent worker skill upgrading.
• Educational attainment (degree and non-degree,
  certifications issues).
• Jobs created and upgraded in Washington Countys
  target industries/business sectors.
• ED Infrastructure Priority
• Prioritized investment in roads, the airport,
  and local technology infrastructure (telecom and
  Internet).
• Local, State and Federal dollars attracted to
  Washington County ED projects.
• Number of existing and new businesses assisted by
  these improvements
• Existing job and payroll retention.
• New job and payroll generation

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Competitive Environment
Competitive Environment Performance Measures

• The following measures are suggested as lead
  performance measures for tracking the progress,
  effectiveness, and impact of the Competitive
  Environment Component of the Roadmap
• ED Marketing Priority
• Public and private sector dollars invested in a
  coordinated Countywide marketing program.
• New investment leads generated by the marketing
  effort.
• New investments made by existing and new
  companies in Washington County as a result of the
  marketing effort.
• Positive change in the perception of Washington
  County as a competitive business location by
  local and external business leaders.
• Impact on the retention and attraction of
  talent to the County.
• Overall ROI from the marketing program on an
  annual basis.

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VIII. Existing Organizational Conditions
Assessment
Organizational Strategy

• Washington County is served by a large number of
  economic development organizations (EDOs), which
  can be categorized into three service area
  groupings
• County-level organizations serving the entire
  County, (Examples Marietta Area Chamber, County
  Govt. ED, Washington State College, others)
• Organizations serving only a sub-area of the
  County, (Example Belpre, Marietta, others).
• Regional, state, Federal organizations serving
  the County, (Example EDA Planning District,
  State of Ohio).
• Current economic development efforts are not well
  coordinated, nor are they guided by a shared
  strategic plan. Limited partnerships and
  collaboration exist presently.
• The public sector (County, local government,
  workforce development organizations) and the
  public sector (private non-profits, chambers,
  utilities, etc.) currently do not share a common
  set of values, working principles, and priority
  agenda for economic development.
• Current ED efforts give greatest attention to
  industrial development existing business
  development training and workforce development
  financial incentives redevelopment projects
  tourism promotion.
• Limited attention is currently being given to
  marketing new business recruitment
  entrepreneurial development strategic planning
  for economic development coordinating workforce
  and economic development.

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Organizational Strategy Goals
Organizational Strategy
Goal 1 Create the Washington County ED Network as
a vehicle to improve the performance and
collaboration of the Countys ED system
IMPACT Improved economic development results for
Washington County communities, businesses, and
citizens.
Goal 2 Create performance-based teams to
strengthen the focus and effectiveness and
impact of Countywide ED activities and efforts.
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Performance-Based Countywide ED Network Option
Organizational Strategy
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Washington County ED Teams Model
Organizational Strategy
Tourism Development Team
New Entrepreneurial Development Team
ED Environment Competitiveness Strategy
ED Marketing Strategy Team
ED-Infrastructure Strategy Team
Workforce-Educ.-ED Strategy Team
New Business Recruitment Team
Existing Business Competitiveness Team
Economic Vitality, Quality Business and Job
Development Strategy
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Washington County ED Network Components
Organizational Strategy
A majority of leaders should be from the private
sector (12)
The other 7 members should come from local
government and education
While some formalized teams would be created, the
Network should encourage any ED group in the
County to draw upon each other as a resource
The Network should spur collaboration,
innovation, and impact by local ED groups.
Strategic Focus Areas
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Organizational Strategy
Organizational Strategy Performance Measures

• The following measures are suggested as lead
  performance measures for tracking the progress,
  effectiveness, and impact of the Organizational
  Strategy Component of the Roadmap
• Washington County ED Network
• For the most part, the Network will be judged by
  the metrics identified under the Economic
  Vitality and Competitive Environment components
  of the Roadmap.
• Ability to encourage and assist local communities
  and their EDOs to join the countywide network
  and form performance-based area councils to work
  in partnership with the Network.
• Ability to build the performance teams to
  accomplish the Roadmap goals, objectives, and
  performance measures that relate to each team.
• Ability to sustain credibility and support from
  its stakeholders, and involve them in its work.
  This should include the general public.
• Ability to develop as a well-recognized leader
  for countywide economic development in Ohio and
  eventually nationally.
• Ability to form dynamic new strategic
  relationships and partnerships with local,
  regional, and state resources to help Washington
  County achieve its Roadmap goals and objectives.

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Approach to Creating a Performance-Based System
for Washington County Economic Development
Organizational Strategy
Performance-based management is a vehicle for
continuous improvement by Washington Countys
countywide and local EDOs. The County should
plan to grow into its system over time.
Step 3 Implement performance management
systems within the Network and member EDOs.
Step 4 Conduct first year reviews of
performance results by the Network and its
partners.
Step 1 Adopt the performance measures defined
in the Roadmap.
Step 2 Work with the Network and its local
partners to set baselines for measuring
future ED performance.
Make adjustments and improvements to the system.
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What Does Performance-Based Mean?
Organizational Strategy

• In the context of the Roadmap, it means that
  economic development efforts can be monitored and
  measured on an ongoing basis in terms of their
• Progress.
• Effectiveness.
• Impact
• It means that all EDOs in Washington County
  associated with the Roadmap plan will adopt more
  performance-based approaches to economic
  development, ensuring that the Roadmaps
  progress, effectiveness, and impact can be
  measured on a regular basis in the future.
• It means that Washington County EDOs will
  establish baselines for building future
  performance-based work efforts. These baselines
  will enable ED stakeholders assess whether the
  Roadmap is having its intended impact over time.
• It means that Washington County EDOs will adopt
  defined performance measures to gauge their
  progress and effectiveness in developing
  businesses, jobs, income, tax base, and other
  measures of economic vitality and growth.

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Link ED Services to Strategic Opportunities
Organizational Strategy
Note Others should be added as identified. Step
to be completed by Washington County ED leaders.
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IX. Key Short Term Action Steps
Implementation Schedule

• Develop consensus to move forward in adopting the
  Roadmap by Washington County leaders.
• Engage major stakeholder groups about their role
  and support (Education, Government, Business,
  State of Ohio, and other groups.)
• Identify and recruit key leaders of the WC-ED
  Network.
• Incorporate the WC-ED Network.
• Prepared detailed work plan to undertake work.
• Set plan in motion to sustain funding of the ED
  Network over time.
• Implement strategic teams and new initiatives.
• Work with partners and Network members to adopt
  key performance measures.

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Proposed Process for Creating the Washington
County Economic Development Network (WC-EDN)
Implementation Schedule
Nov. 2004......Jan. 2005.Feb......Ma
rch.....April
6. NEW WASHINGTON COUNTY ED NETWORK FULLY
IMPLEMENTED AND OPERATIONAL
Leaders communicate with countywide and
local stakeholders and Roadmap and develops plan
support
1. Leadership Approves Roadmap Concept
3. Leadership Adopts Final Roadmap Plan
Leaders continue to give overall guidance
to process.
4. Program Components Detailed
Detailed program components developed by County
leaders.
2. Special Task Force Appointed
Org. Task Force finalizes WC-EDN concept
makes recommendation for final adoption.
5. Matrix Based Teams Formed
Matrix-based teams implement Roadmap recommendatio
ns across County
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X. Appendix Washington County ED Leadership
Survey Report
FULL REPORT AVAILABLE IN SEPARATE FORMAT Major
Conclusions and Recommendations 1.Existing
business retention and expansion is currently the
most important ED priority. 2. New business
recruitment should be given much greater
attention in the future. 3. Roughly 60 of
future efforts and resources should focus on
existing business development. 4. Roughly 25 of
future efforts and resources should focus on new
business recruitment. 5. The remaining 15 of
future efforts and resources should focus on
entrepreneurial development. 6. Many factors
represent current threats to the area's economic
base. Most important threats are perceived to be
major local business closing, loss of young
talent, corporate MA decisions, foreign
competition, and an insufficiently
business-friendly economic development climate in
the County. 7. The same threats are seen in the
future (next three years). 8. Fragmented and
uncoordinated ED system, negative State policies
and business costs, lack of local vision, and
small-mindedness are seen as leading local
obstacles to economic development success.
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X. Appendix Washington County ED Leadership
Survey Report
FULL REPORT AVAILABLE IN SEPARATE FORMAT Major
Conclusions and Recommendations 9. Small to
medium-sized businesses, manufacturing startups,
smaller manufacturers, new service startups,
biotech, and IT companies are seen as the best
future development opportunities for the
area. 10. The area's strongest assets for ED are
seen to be highway access, skilled labor
availability, local higher education resources,
housing quality and affordability, and local
government cooperation. 11. Leadership believes
future ED efforts should become more
performance-based and accountable. A variety of
metrics are seen as important to increasing the
effectiveness of future ED efforts. 12. Key
future priorities for business retention and
expansion are increasing teamwork, a prioritized
approach to company retention, and to create a
"small wins" strategy. 13. Key priorities for
new business recruitment are developing a
coordinated countywide marketing strategy, focus
recruitment efforts on target industries,
consolidate recruitment functions, and form
stronger partnerships with state and regional ED
groups. 14. Key priorities for thinking and
acting entrepreneurially are creating a regional
marketing and branding program, building total
customer care relationships with companies, and
creating a team-based matrix management approach
for ED service delivery.