February 2004, Volume: 7, Issue: e/2, ISBN 1527-5175

~~~A top real estate e-newsletter... stated in January, "The market research firm Gartner estimates that one of every 10 jobs at American technology vendors or service providers will move overseas by the end of this year. By 2008, one-quarter of all traditional information technology jobs will be in emerging market nations." Source: NYT, 1/27/04

~~~Years ago... when working for a large not-for-profit, the president was happy to listen to anyone who agreed. Efforts to question a decision or a direction were seldom considered legitimate. New ideas didn't see the light of day. The management style was classic, "My way or the highway." Sadly, one learned to ask forgiveness, not permission. Cultivate dissenting opinions. Without a dissenting opinion, analysis is typically one-dimensional. Opportunities and talent will slip away. Find, even encourage, people to disagree with you, so that all sides of the decision are examined.

~~~Outsourcing... Richard Hoffman, attorney with Chicago law firm Marshall, Gerstein & Borun's, states: "We're seeing a lot of concern over loss of plants and jobs due to outsourcing of work, i.e. call centers, back office operations, software development, etc. going to English-language speaking countries, i.e. New Zealand and India." Certainly, there are many areas affected by the potential benefits of outsourcing. During the past week we've heard of many companies and industries evaluating the pros and cons of outsourcing. How does this observed trend affect your local ED scenario?

Are you sitting on the cusp of change and need to act?

~~~What's in 36 states and 2 provinces?... Synchronist Business Information System software, in both desktop and Internet versions. Check out this unique tool for evaluating and understanding your existing business portfolio. http://www.blanecanada.com/frameset_successstory.html

~~~Technology is never a solution... Unless you have control of the underlying systems, technology only layers on more complexity.

~~~To recall an old English saying... "Where there is muck there is brass." This translates as: if there is a dirty job to be done, there is money to be made. Source: Bill Costerton, Montana State Univ. @ Bozeman as stated in the Fedgazette, September 2003

~~~Local leadership in a changed world... Preparing a community to do battle for corporate investment has changed drastically in the last eight years. These changes impact the role of local leaders. Many community leaders still harbor an economic development vision based on the world of the 80's. The difference you ask? Well, if your community is still acting like a growth company in a growth market, don't look down. If you do, you are apt to discover, like Wiley Coyote, you have out-run the ground. C'est la vie! For a marketer, a fight for market share is different than a fight for growth. Is your leadership engaged in the right fight? Want help engaging them? Call for details on Blane, Canada Ltd.'s new "Leadership Orienteering", an on-site learning exchange. Contact Eric @ 630-462-9222.

~~~"Reality... leaves a lot to the imagination." Quote: John Lennon

~~~Traditional business retention... is so focused on identifying company problems, community problems, helping retain companies, and creating a relationship with company executives that it fails to create real, substantive value for the development organization. True value positions the organization in a leadership role long after the visits are completed. To learn more about building value into R&E, read "The Missing Link". http://www.blanecanada.com/frameset_missinglink.html

~~~Cooperative competition... Competition is a healthy entity on its own, but pair it with a cooperative spirit and the prosperity is endless. Example: Clusters have existed with success for years. The reason is no secret, just solid collaboration.

~~~Clusters... We asked for your opinions or case studies... "The cluster approach gives you a better understanding of the dynamics of your economy and what the key drivers are. But for people to suddenly expect this to fundamentally change things...it's not something that you can turn on, and all of a sudden the jobs start to flow." Lee Munnich, U. of Minnesota - Clusters consultant, Stuart Rosenfeld, states: "... the more generic and geographically dispersed a cluster, the less likely it is to confer any economic benefit." Additional Source: Chris Gibbons, economic gardening guru in CO

~~~The Federal Reserve... brought together 80 industry insiders, academics, analysts, and policy-makers from the U.S. and Canada to discuss "Challenges to the U.S. Auto Industry". The Chicago Fed Letter of March 2004 describes the various scenarios reported by speakers and is worth your reading. The impact of the southerly move by auto suppliers and the post Sept. 11 border tightening were also addressed, as well as targeted worker training. Ford Motor's director of corporate economics and strategic issues stated "emerging markets such as China are just beginning to reach..."take-off" stage, when per capita incomes are sufficiently high to support accelerating vehicle sales growth," which will affect the distribution of production capacity. www.chicagofed.org/news_and_conferences/conferences_and_events/research_conferences_past.cfm

~~~Hi Tech, Low Tech... You've heard many variations of that theme. A new association to respond to market developments is the Michigan Small Tech Assoc. Created a year ago, MSTA is focused on building and promoting micro and nanotechnology sectors (small technology). The National Science Foundation estimates that this field will yield a $1 trillion market within 10 years. "Small Times" magazine ranks Michigan third nationally in the number of MEMS (microeletromechanical systems) and microsystems companies. "Small world applications are as endless as a scientist's imagination, but real world products are in the marketplace today." Source: "Michigan Business Report" by the Michigan Economic Development Corporation, Vol. 2 No. 1

~~~Defining economic development... is not an easy task! So what do you say when someone asks you to explain it? Try adopting the philosophy of BASF Corporation: "We don't make a lot of the products you buy. We make a lot of the products you buy... better!" Similarly in economic development, this is envisioned through attraction, retention, expansion and investment.

~~~Book recommendation... "How Technology Breakthroughs Happen" by Andrew Hargadon, 2003. You've heard of information brokers. This one addresses technology brokers.

~~~It's about time... Rising exports, increased spending on business equipment, healthy consumer demand, increased defense spending, and the need to rebuild inventories underpin what promises to be a good run for manufacturing this year. Source: Jim Hagerbaumer, Ph.D., economist to bankers

~~~Aim... for a relationship built on trust.

~~~Who is the best person... to send into an executive interview? We get this question periodically from clients and readers. The answer is, someone who: a) takes pride in their work, b) follows direction, c) is curious and interested in many different things, e) is willing/able to follow-through. The rest can be taught with some basic training and familiarization.

~~~Plan for your next job... every day. No one looks forward to picking up and relocating, yet it is a fact of life in economic development. We are surprised at the number of calls we get from professionals who do not have a  job search network in place. You, too, can be squeezed out in a local power play. If you are, it will take more than a resume to get the next job. It requires contacts. Active involvement in state, regional, and national associations are important to employment security. Can't afford to belong to all of them? Fine, pick one and get involved. It's your future.

~~~OK... so we guess you don't know any "top" developers. At least that's what we are (not) hearing from readers. First, we asked for nominations of top development professionals. We figured the lack of response was because the scope was too large - presumed to be national. So, the second time we asked readers to nominate the top developer in their state. Surprisingly, we still got very few responses, and in a couple of instances received nearly an entire list of economic developers in two states! Curious. When searching for the "best" programs, leadership, and best practices, who do you try to emulate? Send us the name, title, and organization. nblane@blanecanada.com

~~~Preparing to do battle... for corporate investment, Bill Sproull of Dallas asked a series of insightful questions: What do you see as the implications(s) of this fight for market share? More focus on retention/expansion of what you have? Focusing on a few target industries and growing them?

Great questions, Bill. Increased attention to business retention and business development are both very important elements of these changes. A more sophisticated approach to clusters is absolutely a must for larger communities/regional groups. Pushing more of our marketing dollars internal instead of external is another element of the change. However, probably the most important is the re-education of leadership. They, more often than not, come from the old-school. They are pushing organizations into behavior that is inconsistent with the market realities of today. The potential for conflict is where many economic developers will lose their jobs. Developers see the consequences of the changes. However, you work for leadership. They will not take responsibility for a failed strategy. You'll get that credit along with walking papers. "Leadership" is an ever evolving process.

Blane, Canada Ltd.
1506 Cadet, Suite 100
Wheaton, IL 60187-7380
ph 630.462.9222
fax 630.462.9210

info@blanecanada.com