Regional Development Strategies

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Regional Development Strategies

• B6610 October 30th, 2006
• Sean McCarthy

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Class Outline

• Popular Strategies
• Clusters
• Staples/Stages
• Hub-and-Spoke
• Program-based
• Environmental Management
• Preparing a Regional Development Strategy

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Purpose

• To outline a possible strategies that a region
  can use as a basis for economic development
• Question I Can a strategy overcome fundamental
  shifts in economics?
• Think Fishery China
• Think Resource Based Technology
• Think urbanization
• Question II Are strategies real or sometimes
  just political responses?

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Clusters

• Popularized by Michael Porter
• Similar firms, close enough to interact
• Silicone Valley Why? Ottawa as well?
• Italys Fashion Sector
• Often Sector-Based
• Geographic implications
• Can we create clusters?
• What in NL do we have the basis for clusters
• Marine Related
• Distance Education
• Oil Gas
• Other

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Staples/Stagesagain

• Applying Stages theory to natural resource
  development
• Building on natural resource endowments
• Popular means of diversifying while maintaining
  traditional industries
• Risk Lack of Diversification
• But What Cycle are we in Now?
• Did we use this thinking with the fishery?
• How are we approaching Voiseys Oil Gas?

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Hub-and-Spoke

• The regional centre concept
• Regional development through investment in a
  central location
• Outlying areas become bedroom communities
• Growth Pole Theory
• Governance Implications
• Downside Impact on Small Communities
• What are some examples
• Who seems to prosper most?
• Politically who decides the hub?

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Program-Based

• A strategy without strategic focus
• Defining goals based on development programs
• 1980-90s Rural Development Associations
• Mold strategies to fit funding criteria
• Upside Allows for increased flexibility and
  politically it is easier
• Opportunity Influence Program
• Downside Lack of Strategy
• Many examples around IT, Tourism, Aquaculture

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Environmental Management

• Supply-side development approach
• No preferred sectors or arrangements
• Create a fertile environment
• All development is good
• Let market decide strengths and weaknesses
• Can be right or left wing, or both
• Which way does the Prime Minister think?

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A Couple of Questions

• What approach does the federal government
  espouse? How does ACOA fit?
• What approach does the current provincial
  government now support?
• As a business student, which one do you support?

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Strategic Planning
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Strategic Planning Core Questions

• Where are you?
• Where are you going?
• Where should you be going?
• How do you get there?

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What is Strategic Planning?
Planning is

• a way of managing change
• a means to an end rather than an end in itself
  and
• a systematic way of thinking.

Planning must

• lead to a long-term commitment
• be based on a realistic appraisal of resources
  and environment and
• be based on involvement of all groups and
  interests.

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Why Strategic Planning?

• Quick fixes have not worked
• Communities must be empowered
• Community consensus is needed
• A systematic, measurable approach is essential

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Planning to Plan
Planning to Plan
VISION
INITIATIVES
MONITOR EVALUATE
GOALS
TARGETS
OBJECTIVES
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Planning to Plan

• Set realistic objectives
• Determine how meaningful public involvement can
  be achieved
• Determine the types of professional resources and
  services needed
• Identify the time requirement
• Develop partnerships with stakeholders

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Strategic Planning Visioning
VISION
Planning to Plan
INITIATIVES
GOALS
MONITOR EVALUATE
OBJECTIVES
TARGETS
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The Vision

• is a qualitative statement of community values,
  beliefs, aspirations, and desired quality of
  life
• identifies the desired social, economic,
  cultural, and environmental conditions and
• is defined by the community.

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Effective Vision Statements

• show respect for the past
• are compelling and realistic
• stress challenge and potential and
• are beacons.

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Mission/Mandate
a statement of organizational purpose
1. Why does this organization exist? 2. What is
its operational philosophy? (a)
Leadership? (b) Management? (c) Activities?

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Mission/Mandate (contd)
1. focuses the board 2. gives direction 3. provide
s a framework for activities
Defined by members and directors.
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SWOT Analysis
S - STRENGTHS
INTERNAL
W - WEAKNESSES
O - OPPORTUNITIES
EXTERNAL
T - THREATS
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SWOT (contd)

• based on various sources of information
• municipalities
• RDAs
• governments
• citizen participation
• external market research

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Strategic Issues

• usually embedded in weaknesses and threats
• may include
• employment needs
• education and training
• youth retention
• wealth retention/generation
• quality of life issues

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Strategic Planning Goals and Objectives
VISION
GOALS
INITIATIVES
MONITOR EVALUATE
OBJECTIVES
TARGETS
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Goals

• statements of long-term, desired outcomes which
  provide focus for the planning process within a
  sector or strategy
• building blocks for the vision
• not directly measurable
• progress should be observable
• help focus the planning team
• Local and external expertise contribute to
  developing the strategy

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Objectives

• more tangible outcomes
• qualitative and quantitative statements
• building blocks that support the goals

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Strategic Planning Targets and Initiatives
VISION
GOALS
INITIATIVES
MONITOR EVALUATE
OBJECTIVES
TARGETS
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Targets

• specific, measurable, time specified outcomes
• building blocks that support the objectives

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Initiatives

• specific activities/projects in support of
  targets
• demand implementation capacity
• should be
• self-sustaining
• community-owned
• may generate
• wealth
• employment

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Strategic Plan - Goals to Targets
Goal
general statement of a desirable, longer term
tendency
specific, achievable end states as concrete
contributors to the goal
Objective
Objective
Objective
TARGETS 1.1 1.2 1.3
TARGETS 2.1 2.2 2.3
TARGETS 3.1 3.2 3.3
time lines, extent, degree, quantity, and other
measures indicating contribution toward each
objective
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Strategic Planning Monitoring and Evaluation
VISION
INITIATIVES
GOALS
MONITOR EVALUATE
TARGETS
OBJECTIVES
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Monitoring and Evaluation
The plan should include benchmarks to

• identify progress
• ensure adjustments can be made and
• identify economic and social impacts.

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Monitoring and Evaluation (contd)

• least understood aspect of strategic planning
• often seen as bureaucratic requirement
• basis for adjustments/updates
• provides members with progress snapshot
• allows for identification of partner criteria for
  evaluation

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Monitoring and EvaluationTerminology

• Inputs What resources will we need?
• Outputs What results are expected?
• Outcomes What other results are hoped for?
• Indicators How do you know?

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Why Update?

• Reviews may lead to updates.
• Shifts in economic development priorities occur.
• Potential new opportunities arise.

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Update Strategy

• 1. What sectors are priorities?
• 2. What type of input is needed?
• Public?
• Stakeholder?
• Professional advice?

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Deming
Plan
1. Select Focus Problem 2. Gather Data
Investigate 3. Identify Root Causes 4.
Brainstorm Possible Solutions 5. Develop
Solution Plan
Do
Act
9. Capture Improvements
Standardize 10. Evaluate Team Next Steps
Continuous Improvement
6. Implement Solution Plan
Check
7. Verify Results (Compare with 2.
Above) 8. Confirm Acceptance
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Almost the Last Slide
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Some Last Questions

• All Zone Boards Completed Plans
• Did they work?
• If not, why not?
• Can plans overcome economic fundamentals
• Are plans sometimes just political? If so what do
  we do