Cleveland Area Development Groups Explore Re-Organization Options

The Cleveland Plain Dealer reported yesterday that the Greater Cleveland Growth Association, Cleveland Tomorrow and the Greater Cleveland Rountable are exploring new relationship and organizational options. Why? Because the economic development environment has shifted radically and a new business model is needed to respond more effectively. Amidst all this, the new Team NEO is coming on stream.

For those of you who read ED Futures regularly, you know that we have been talking about the need for a new partnership-based "network" economic development model for sometime, especially on a regional scale. This would seem to be a logical move for Greater Cleveland. Pittsburgh has already gone down this path, and so has San Diego. Baltimore considered consolidation, but decided against it. Restructuring is going on everywhere.

Does that mean a merger and strict amalgamation of these groups is the best solution? Probably not in my judgment. Does it make sense to tighten up links in the network and re-focus attention and resources? That is what I would recommend as an outside observer to this situation.

Here is what I would suggest:

1. Finalize the new regional economic development agenda. There has already been considerable thought given to it by the groups mentioned above, as well as area foundations and other organizations likely to weigh in on these decisions.

2. Define realistic outcomes that the region can achieve over the next 24-36 months in light of the economy, available resources, the changing competitive environment, political considerations and other factors.

3. Look at existing organizational capabilities (core competencies) and build "teams" that span the three organizations and other players (including Team NEO) to achieve these outcomes.

4. Build the new network with the team model. Set the teams into motion. They will need to grow into their new roles and responsibilities. While it may be tempting to define things to the "nth degree," avoid that temptation. The new economic development model is all about "strategic relationships." Greater Cleveland needs to move beyond itself and build new national and global ties that relate to funding resources, new business opportunities and other assets that matter to our ability to compete.

5. Retain flexibility in "how" you approach things in the future. Experiment with new strategies. Build tighter relationships to key actors, decision-makers and information sources in each of the region's strategic industries.

6. Encourage the State of Ohio to create a set aside within each of its economic development funding programs, including Third Frontier, to provide funding for joint ventures among regional, state, national, and global organizations. The new strategy should reward organizations and organizational networks that collaborate and work together in achieving "team results." That is the best thing the state can do for NE Ohio and other Ohio regions at this point in time.