best practices in business retention
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Best Practices in Business Retention. Best Practices in Business Retention TVA Perspective Business Case for Retention Award Winning Models What’s Next. TVA Perspective. TVA Perspective. Nation’s largest public power producer Over $9 billion in 2006 revenues - PowerPoint PPT PresentationTRANSCRIPT
Best Practices in Business Retention
Economic Developm
ent
Best Practices in Business Retention
TVA Perspective
Business Case for Retention
Award Winning Models
What’s Next
Economic Developm
entTVA Perspective
Economic Developm
entTVA Perspective
•Nation’s largest public power producer
•Over $9 billion in 2006 revenues
•158 distributors, 62 directly served customers
•221 counties in seven states, serving 8.7 million people
•99.999% reliability for seven straight years
Economic Developm
entTVA Mission
Energy – provide affordable, reliable power
Environment - provide environmental stewardship and integrated river management
Economic Development – promote sustainable development
Economic Developm
entTVA Perspective
Economic Development is at the core of TVA’s mission. TVA works together with distributor customers, communities, and state and regional economic development partners to:
attract new companies
retain and grow existing businesses
help communities prepare for growth
Economic Developm
entTVA Perspective
Jobs and capital investment are our bottom line
Industrial recruitment
Business Retention
Technical services
Community Development
Entrepreneurship
Retail development and recruitment
Financial assistance
Economic Developm
ent
The Business Case
Award Winning Models
Economic Developm
entThe Business Case
Fortune 500 Top 25 Sectors – 1982
1. Manufacturing 11
2. Energy 13
3. Communications 1
Fortune 500 Top 25 Sectors –
2007
1. Finance/Insurance 10
2. Manufacturing 5
3. Energy 4
4. Retail 2
5. Health 2
6. Communications 1
7. Technology Services 1
Economic Developm
entNational Manufacturing Trends
548,900 net jobs lost in the US in FY05• 5,330 net job loss in Valley
8,050 manufacturers lost in US in FY05
Shifting manufacturing sectors• Textiles, furniture, light assembly going offshore
Regional disparities occurringBureau of Labor Statistics 2005
Economic Developm
entTennessee Valley Trends
11,325 manufacturing facilities in the Valley
666,000+ manufacturing jobs in the Valley• 21.4% total employment • 32.7% of rural• 16.9% of urban
815,000 additional jobs from multiplier effect
$27.0 billion personal income
Economic Developm
ent
Recruitment Costs
$1,000 – $50,000 per job
Retention Costs
$200 – $4,000 per job
Source: US Department of Labor & Employment, 2006
Cost Benefit Analysis
Economic Developm
entNew Job Creation - Averages
Small Business, 10.0%
Expansions, 75.0%
Recruitment15%
Economic Developm
ent
Got Focused
Driven at the local level
Strong action plan
Got Prepared
Training
Researched Targets
Pre-determined follow up plans
Award Winning Models
Economic Developm
ent
Got Connected
Partnered with industry stakeholders
Learned from the best practices of others
Stayed “connected” to industry
Award Winning Models
Economic Developm
entAward Winning Models
Blane Canada, Ltd
Economic Developm
entAward Winning Models
Economic Developm
ent
Distributor and 2 rural, West Tennessee Counties
Two Unique Strategies Big Results
Success Breeds Success
2007 BREI Winner
Gibson EMC
Economic Developm
ent
New Economic Development Director No Existing Industry Program The Numbers Tell the Story
The Impact of One Call
2005 BREI Winner
0 to 60 in 30 Days
Economic Developm
ent
North Mississippi Industrial Development Association
50% Power Distributors - 50% TVA Industrial Recruitment Focus “So, tell me about your workforce…” 2006 Blane Canada, Ltd Award
NMIDA
Toyota General Electric Peterbilt
Economic Developm
ent
What’s Next?
Economic Developm
entWhat’s next at TVA?
Enhancing our company’s approach to retention Aligning internal resources Equipping distributors and communities Integrating current products and services Creating new products and services Incorporating good energy policy with retention Innovative Partnerships
Economic Developm
entWhat’s next?
Innovation An example: Automotive Research Alliance
Workforce Development and Education Expanding Entrepreneurship IEDC “Innovation Agenda”
Economic Developm
entWhat’s next for you?
Key Account Management? Website Enhancement? Partnerships with economic development? Rate consultation? Retention friendly policies? Industry support?
Economic Developm
ent
BREIBusiness Retention & Expansion
International
Annual Conference
Wichita, KS
June 2-8, 2008
www.brei.org
• www.TVAed.com
•State & local ED Partners
•EDA
•IEDC
•www.appanet.org
What’s next for you?
