formulating strategies

8/8/2019 Formulating Strategies

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Formulating

Strategies


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Module 4

Describing a CollaborativeRegional EconomicDevelopment Framework

Leading the Planning Effort

Detecting Regional Advantage

Formulating Strategies

Executing Your Plan

Module Objectives

* Conducting a SWOT analysis

*Identifying & organizing issues

*Prioritizing regional issues

*Visioning

*Defining strategy options

*Beginning Implementation

*Setting Strategic Priorities


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Objectives

Define the strategy formulation process

Conduct a comprehensive SWOT analysis

Identify and organize regional issues and goals to be

addressed

Prioritize regional issues and goals to be addressed

Develop consensus on a vision

Defining strategy options

Set strategic priorities

Begin implementation planning


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I.

Conduct aComprehensive Regional

SWOT Analysis


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SWOT Design Model

Creation of Strategy

Threats &

Opportunities inEnvironment

Key Success

Factors

External AppraisalStrengths &

Weaknesses ofRegion

Distinctive

Competencies

Internal Appraisal

Filtering Process for Potential Strategic Issues

Socioeconomic Data Inputs:

Experiences

Quantitative & Qualitative FactsAnalyses

SWOT


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SWOT Methodology

Regional strategic plan sets out strategy to:

Capture external opportunities by exploiting regional strengths

Counter external threats by addressing regional weaknesses

SWOT makes most sense when focused on specificchallenges

The process of defining SWOT characteristics involves

integrating:

Analysis of regional economic advantage and

Assessment of regional institutional capacity to implement a plan

Combine interpretation of cluster

analysis as input into SWOT


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Economic & Institutional SWOT

Economic AdvantageAnalysis

Key questions:

What are the current andprojected sources of wealth

creation in the region? Which are the regions

economic vulnerabilities thatmust be recognized andaddressed?

How can projected wealthcreation be realized?

Results from analysis of 5building blocks, presented interms of SWOT, and reviewedand revised by leadership &stakeholders

Institutional CapacityAssessment

Key questions:

What are the key organizational

and physical features whichprovide the region with a uniquebenefit

What are the challenges thatmust be overcome to create acompetitive advantage?

How can these be tied tostrategic options?

Results from assessment of visionand goals (as defined byleadership and stakeholders) forachieving prosperity


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II.

Identify and Organize

Regional Issues and Goalsto be Addressed


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Regional Issues and Goals

Summarize

Strengths and Opportunities as Assets

Weaknesses and Threats as Challenges


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Talent

& Knowledge

Capacity

Risk Tolerance Technology

Development &

Deployment

Global

Connections

Global

Capital

Advanced

Business

Facilities

Social

Networks &

Civic Support

Business

Environment

Global Brand

Presence

Unique

Amenities

Inventory of

Regional Assets

and Challenges

Organizing Your StrategicChallenges & Assets


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Definition:The ability for the region and its companies

to compete with the world's best in global markets

Includes Assets and Challenges Related

Global perspective of area businesses, workers, and leaders

Visibility in the global marketplace brand identity

Linkages to global customers (and a critical mass of export-based

activities)

Identification of emerging and existing market opportunities

Access to higher order business services

Complexity of market challenges

Global Brand Presence


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Definition: State of the art commercial and industrialdevelopment capable of supporting a diversified economy,

and that provides full access to a globally-linked

infrastructure


Available buildings that meet the functional needs of emerging clusters

Last-mile access to state-of-the-art telecommunications infrastructure

Relatively easy access to the national/global land, air, and/or sea transportation

networks

Range of available facilities for a wide array of

expanding and start-up companies

Direct linkages to professional business services,

especially for start-up enterprises

Advanced Business Facilities


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Definition:Availability of a range of financial servicesfor companies at different stages of their life cycle


Debt financing institutions and services, especially having

familiarity with unique clusters Established proximate sources of equity (e.g., angel networks and/or

venture capital)

Knowledge of the range of financial needs and expertise to support

smaller companies and the unique needs of firms in growing or

emerging clusters

Global Capital


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Definition: The extent that goods, people, services, and

knowledge link to one another and global markets


Pervasive traditional infrastructure networks

Highways (necessary, but not sufficient)

Multimodal Transportation networks

Passenger air access

Public transportation

Infrastructure to support higher order business services for:

Telecommunications capacity (the physical IT infrastructure)

Continuous/easy information transfer (formal and informal networks thatsupport idea exchange)

Global Connections


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Definition:Fertile environment for new business

formation


Culture that supports both the success and failure inherent in taking

risks

Capital to invest in risk-taking activities

Presence of early technology adopters

Management expertise to translate ideas into commercially viable

ventures

Risk Tolerance


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Definition: Sources and users of new products and/or

processes


Technology creation

Resources devoted to Basic Research

Applied research capacity

Industry has access to external problem solving capacity

Access to research and STEM talent

Technology adoption

Access to information about new product or process innovations Capital for investments

Willingness to take risks

Technology Development & Deployment


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Definition:Ability of businesses and workers tomanage business costs and climate given current

global economic pressures


Coherence of tax structure and business regulation, includingenvironmental regulation

Accessibility of relevant government and business information

Transparency and stability of government

Relative cost of doing business

Stable and open relationship between labor and management

Existence of similar cluster networks

Access to specialized professional business services

Competitive Business Environment


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Definition:Public services adequate to meetcitizen/worker demands


Social Networks and Civic Support

Community services for a

growing population

Water and sewer Affordable housing

Sufficient investments

in public school

facilities

Good, reliable localgovernance

Community services for a

demanding public

High quality public education Safety and security

Day care and public

transportation

Parks and recreation

Environmental quality

Social networks (community) to support

growth & development


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Definition: The current and potential human capital available in areapeople and institutions (i.e., current skills as well as ability to learn

and discover)


The quality of the labor force

Technical and learning skills

New work ethic (that values creativity, ideas, and knowledge over

dependability and rote performance of duty)

Accessible learning opportunities

Secondary/post-secondary

Science, technology, engineering & math

Continuous/easy knowledge transfer

Social networks across diverse cultures/backgrounds

Technology and infrastructure to support idea

sharing

Talent and Knowledge Capacity


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Definition:Assets designed to attract and retain people!

talent aswell as citizens


Attractiveness to workforce (especially the creative class)

Managers

Producers

Service providers

Quality of life for a changing workforce

(the Third Place)

Changing demographics and values

Proximity to attractive downtowns and cultural institutions Access to unique natural environments and related outdoor

activities (e.g., water, beaches, mountains, parks, etc.)

Unique Amenities


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Take a moment and review your own regions assets and

challenges

Which are the 2 most valued assets that make your regionunique?

Which 2 challenges appear to create the greatest concern?

Do your regions assets and challenges fit into the strategy

options we discussed? If not, which ones dont? If so,

which ones do? prior slide?

How do these assets and challenges relate to your regional

advantage?

What Does This Framework Miss?

Prioritizing Issues

Group Exercise


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III.

Prioritize Regional Issues

and Goals to be Addressed


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Regional Issues and Goals

Identify those in which action might makethe greatest impact

Develop a short list of those that the

leadership and citizenry wish to tacklethrough concerted action

Convert these preferred actions to goals

designed to address the priority issues


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Authorizing

Central control (esp. of

resources)

Role of benevolent leader

in making decisions

Voting

The use of secret ballots

Low-tech (using post-it notes or gold stars)

High tech community voting tools Consensus building

Retreats

Summits

Prioritizing Regional Issues and Goals -

Decision-making Techniques


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Gaining buy-in to Decisions

Focus on principles and values instead of the

specific actions

Link priority actions to principles and values in

the vision Keep the full list

! Hold on to all the recommendations in the report

! Emphasize priorities in the Executive Summary


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IV.

Develop Consensus on a

Vision


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Elements of Successful Regional Visioning

Ensuring consensus on important values

Acknowledgement of differences in values

Identification of commonalities

Defining a future prosperity in terms that mean

something

Uniqueness of vision statement

Appropriateness to the region

Incorporation of principles for making strategic choices

Nexus among regional vision, regional assets,articulated goals, and feasibility of action


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Creating Your Own Definition of Future

Prosperity

Shaped by economic, demographic, technology, and

social trends

Key questions to consider when defining future

prosperity of an area:

What industries will serve as the economic bedrock of the

community in the future? Do these industries support

family sustaining jobs?

What skills will be required of the workforce?

How will demographic and social trends impact quality of

life?

How will the region remain competitive in the global

economy?


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Regional Prosperity?


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Process for Agreeing on a Vision

The Vision Thing

Planning vs. Visioning theyre not the same

Techniques for visioning

!

Visualization exercises! Philosophical question and answer discussions

! Scenario building efforts


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Goals and Values

Value identification

Statements of agreed beliefs

Importance in parameter setting

Goal setting

Articulating

Prioritizing

Agreeing (consensus building)


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Elements of a Vision Statement

Timeframe: Consider Desired Future State of the Regional

Economy (10-20 years)

Goals: Need to Prioritize Regional Goals (i.e. make sure

they are Realistic and Limited in Number)

Values: Principles that are important for all to defend in

taking any action

Assets: Understanding of key regional opportunities and

resources that will serve as the foundation forfuture action


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Exercise: Examples of Vision Statements

Northern Kentucky - Vision2015.org

East Midlands

North Carolina Future Forward Leadership Committee

Texoma as a Hometown Hotspot

Market Street Services, Hopkinsville-Christian County in

Kentucky

East-Central Vermont CEDS Committee

(Take a few moments and read the vision statements on the last two

pages in module four. Discuss with those at your table.)


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V.

Formulate Strategy Options


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Mapping strategic responses to the preferred future

Setting priorities (SELECTING VITAL

PROJECTS)

Finalizing decisions

Gaining consensus

Getting commitments

Prioritizing Strategy Options


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Define the Need for Strategy Options

Recognition of broad array of issues that can have

significant impacts on regional economy

Wide array of potential strengths/ opportunities (i.e.,

assets) and weaknesses/threats (i.e., challenges)

Sometimes perspectives of stakeholders focus too

narrowly on traditional assets and challenges

Need for a way to organize the litany of assets andchallenges to manage more efficient stakeholder

discussions


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EnhanceTalent

& Knowledge

Capacity

PromoteEntrepreneurial

Risk-taking

Create&Adopt New

Technologies

ConnectGlobally

AccessGlobal

Capital

DevelopAdvanced

Business

Facilities

BuildSocialNetworks &

Civic Support

Create a

CompetitiveBusiness

Environment

EstablishGlobal Brand

Presence

OfferUnique

Amenities

Strategic Actions

To Achieve

Regional

Advantage

Organizing Your StrategicActions


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VI.

Set Strategic Priorities


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Priority Setting Decision Making Exercise

Building on the previous exercise

Brainstorm a list of actions that might address the

2 challenges that you identified as the greatestconcern in the exercise we just completed.

What approach would you use to narrow the list to 3 and

build consensus?

What 3 actions did you agree on and why?

Why did you discard certain actions?

How do you propose to inform the proponents of these

actions about the discarded actions?


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VII.

Begin the Implementation

Planning


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Elements of Priority Strategy

Implementation Plans

Rationale for Action (Challenges)

The Intended Outcomes (Goals)

The Proposed Initiatives (Strategies)

The Actions and Tasks (Tactics)

Success Measures

-Outcome Metrics-Implementation milestones

Partners (Convener and Stakeholders)

Funding Needs


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Review, Questions and

Discussions


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formulating strategies

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