Leadership Best Practices Course

Leadership always has been a key differentiator between successful and
unsuccessful organizations. Harvard B-School is planning an interest course on the top for March 20066. Sounds interesting. Too bad it costs ten grand to go.

In today's complex and competitive business environment, achieving and retaining the leadership edge often seems to be an unattainable goal. Leadership Best Practices focuses on proven leadership strategies and takes cutting-edge research one step further by giving participants the tools and techniques needed to both benchmark and enhance their leadership practices and those of their organizations.

The program features several stimulating modules facilitated by HBS faculty who examine the phenomenon of leadership and who have broken new ground in the study of leaders or leadership development. Each expert will unveil his or her latest groundbreaking research.

Topics to be discussed include:

-Strategies for sustainable, innovation-driven growth
-The journey to authentic leadership
-Strategic management of talent – as the key to competitive advantage
-Best practices for winning in China and India
-Leadership with impact
-A success framework for work and life
-Contextual intelligence – the power to leverage global business conditions

Learn more here.

Ohio Studies High Speed Rail...Again

This is one we should have done a long time ago. Hopefully we get it right this time.

The Ohio Rail Development Commission kicked off two studies recently to determine the impact and feasibility of passenger rail service in the state.

The first study will examine what effects passenger rail would have on Ohio's economy. The commission estimates the system would create 1,500 permanent railroad jobs and stimulate 6,000 more jobs as development springs up around rail stations and communities served by trains.

The commission also believes the easier transport of passengers would spur further economic development around the state.

That study is being funded through $500,000 in the commission's budget. One portion of that study is being conducted by Transportation Economic & Management Systems Inc. of Frederick, Md., which served as the original consultant developing the Ohio Hub plan. A parallel study will be conducted by Sam Staley, a professor and former director at the conservative Buckeye Institute for Public Policy Solutions.

Read more here.

Nissan Tennessee Deal: $155,000 Per Job!

Tennessee will give Nissan North America close to $200 million in incentives over 20 or more years as part of the deal that snared the automaker's headquarters and its nearly 1,300 jobs.

That's almost enough money to cover Nissan's headquarters payroll for two years, according to a state-commissioned study by the University of Tennessee's Center for Business and Economic Research.

Read the story here.

OECD's New STructural ANalysis (STAN) database

The STAN database for industrial analysis provides analysts and researchers with a comprehensive tool for analysing industrial performance at a relatively detailed level of activity across countries.

It includes annual measures of output, labour input, investment and international trade which allow users to construct a wide range of indicators to focus on areas such as productivity growth, competitiveness and general structural change.

Through the use of a standard industry list, comparisons can be made across countries.

The industry list provides sufficient detail to enable users to highlight high-technology sectors and is compatible with those used in related OECD databases.

Learn more here.

Caribbean Nations Pitch Internet Gambling

Heads up. Caribbean nations are pitching legalization of Internet gambling.

Here is a clip from a recent article on the issue: "Internet Gaming is one of the limited available options through which Antigua & Barbuda as a small developing state can bridge the digital divide and use Information and Communications Technology (ICT) as an instrument of economic development. Rendering Antigua & Barbuda poorer by unlawfully denying market access to Internet Gaming will not make the United States Richer."

Read more here.

Enterprise Florida Announces New Head

Enterprise Florida, the state's economic development organization, has picked a new president and CEO by early December. John Adams, who has led an economic development organization in Laredo, Texas, for the past seven years, is to replace Darrell Kelley, who served as head of Enterprise Florida for three years.

Mr. Adams' salary has not been finalized, organization officials said. Mr. Kelley earned about $324,000 last year, including a base salary of $120,000 a year from taxpayer funds and about $204,000 from private funding.

Read more here.

Wisconsin Looks to Economic Development Changes

Republican Wisconsin lawmakers have unveiled a $130 package of state incentives designed to encourage economic development in the state.

One of the more notable suggestions is a proposal to eliminate state tax on capital gains.
The plan also includes a suggestion to make it easier to raise equity for private companies.

Read more here.

Automotive: Misery Loves Company

"The global automotive industry is fraught with irony", according to a recent review at Yahoo Finance.

North American OEMs are having some success in Asia (namely China) while floundering at home. Japanese players are meeting with success in North America while remaining relatively passive about the ever-wakening automotive giant in their own back yard - again, China. Indeed, this is ironic, but symptomatic of "global" industries.

Once the yardstick with which automotive engineering was measured, the Germans are suffering from low quality. Who expected that? Amazing what happens when an industry falls apart.

General Motors is second only to the US government in health care spending. The company provides these benefits for more than a million Americans at an annual cost of more than $100 billion; $1,500 of every GM car sold goes to pay for those benefits. And so, GM is trying to wring heathcare costs out of the equation. It's sad, but predictable.

Financial analysts and bond investors think GM has enough cash for its rob-Peter-to-pay-Paul strategy to be sustainable for two or three years, then bankruptcy becomes more of a reality. Keep your fingers crossed. It c-o-u-l-d happen...bankruptcy this is.

GM is also struggling with products that just don't seem that compelling. What else is new?

GM's saving grace may be China where the company has a commanding lead. But that comes at the expense of American jobs!

Ford is focused on cutting jobs and saving cash. The company hopes to stop the hemorrhaging from its North American business which is losing nearly $1 billion per quarter. The most sweeping step so far is the elimination of separate sales and marketing organizations at its Ford and Lincoln Mercury divisions. The company has said it wants to cut as much of 30% of its salaried North American workforce. Ford also may opt to close a few of its North American assembly plants. Not good news for "Ford towns."

Meanwhile Ford also is looking to China for profits but is lagging behind GM, Volkswagen, Honda, Toyota, and even Hyundai for market share.

DaimlerChrysler is on the verge of a changing-of-the-guard when Jürgen E. Schrempp steps down in 2006 and makes way for Dieter Zetsche. Zetsche has been a rainmaker of sorts as the head of the Chrysler division, and it is hoped he can have a similar effect on the beleaguered Mercedes division back home in Germany. Mercedes has been plagued by slow sales, falling market share, and shoddy quality. Meanwhile, spurred by fresh products, Chrysler is enjoying a resurgence.

Volkswagen is suffering from high costs, high sticker prices, and low quality. Its VW brand is in decline both at home in Europe and in North America. The company has even lost its leading position in China to GM. The company has admitted it has problems but like GM its woes stem from powerful labor forces. To be successful VW has to battle powerful German labor unions to lower wage costs, trim jobs, and eliminate its 30% manufacturing overcapacity.

Toyota and Honda bring a little boom to the gloom. The two companies are successful in their home markets as well as those in Europe and North America. They both are leaders in the development of hybrid technology which, as fuel prices soar, will almost certainly be a key product strategy as time goes on. However, the two companies are biding their time in the world's hottest car market, China. Not only are they being outpaced by the likes of Ford and GM, they are being beaten by Hyundai - a second tier player. While Toyota admits it has gotten a slow start in China, did not Toyota and Honda come late to the US market?

Where's the good news in the industry? China, but for how long if things continue on this path. Look for the shakeout. It's coming and it won't be pretty.

Just a heads-up to my economic development friends.

North Dakota: A Lesson in Senior Economics

North Dakota's senior citizens generate annual income of almost $1.9 billion and comprise a growing market for entrepreneurs, a new analysis of census figures shows. Some communities are starting to take notice.

State residents 65 and older have incomes comprising 16.5 percent of the state's total income, according to the North Dakota State Data Center. They also hold more than half of the state's interest income, which includes dividends and rents, an important source of investment funds, said center director Richard Rathge. Read more here.

Northern Kentucky Moves on Clusters

After three studies, Northern Kentucky economic developers are moving forward on an effort to develop clusters in the Kentucky counties just across the Ohio River from Cincinnati. Their top picks: advanced manufacturers, technology-driven companies and office headquarters. Go here to read more.

ED Reading List for Beginners

Books and Reports

Blakely, Edward J, and Ted K Bradshaw, Planning Local Economic Development (Sage Publications Inc., 2002)

Bingham, Richard D, Mier, Robert, Theories of Local Economic Development (Sage Publications Inc., 1993).

Cohen-Rosenthal, Edward, Musnikow, Judy, Eco-Industry Strategies (Greenleaf Publishing,
2003).

Corporation for Enterprise Development, 2004 Development Report for the States
Washington, DC Online Document Viewable at: http://www.cfed.org/focus.m?parentid=31&siteid=1099&id=1099

Harper, David, A., Foundations of Entrepreneurship and Economic Development, (Routledge, UK, 2003).

Iannone. Donald, T., Creating Leadership Advantage for Economic Development, (Amazon.com Publishing, forthcoming 2006). Also available at: http://www.don-iannone.com.

Iannone, Donald, and McKee, Daryl, Marketing Communities in the Information Age, (American Economic Development Council, Chicago, Illinois, 1999.) Available at: http://www.iedconline.org.

Poole, Kenneth E., Erickcek, George A., Iannone, Donald T., McCrea, Nancy, Salem, Pofen
Evaluating Business Development Incentives, (National Association of State Development Agencies (NASDA), Washington, DC, 1999).

Schaeffer, Peter V, and Loveridge, Scott, Small Town and Rural Economic Development (Praeger/Greenwood, 2000)
Seidman, Karl F, Economic Development Finance , (Sage Publications Inc., 2004).

Articles

Jun Koo, “How to Analyze the Regional Economy With Occupation Data,” Economic Development Quarterly, 2005 19: 356-372.

Dan Immergluck, “Building Power, Losing Power: The Rise and Fall of a Prominent Community Economic Development Coalition”, Economic Development Quarterly, 2005 19: 211-224.

Michael J. Mondello and Patrick Rishe, “Comparative Economic Impact Analyses: Differences Across Cities, Events, and Demographics”, Economic Development Quarterly, 2004 18: 331-342.

Maryann P. Feldman and Johanna L. Francis, “Homegrown Solutions: Fostering Cluster Formation”, Economic Development Quarterly, 2004 18: 127-137.

Joseph Cortright and Heike Mayer, “Increasingly Rank: the Use and Misuse of Rankings in Economic Development”, Economic Development Quarterly, 2004 18: 34-39.

John M. McGrath and Ronald Vickroy, “A Research Approach for Tracking Local Economic Conditions in Small-Town America”, Economic Development Quarterly, 2003 17: 255-263.

Important ED Resources You Should Know About

International City/County Management Association (National Professional Association)
777 North Capitol Street, NE
Suite 500
Washington, DC 20002 USA
Phone: 202-289-4262
Website: http://www.icma.org

International Economic Development Council (National Professional Association)
734 15th Street NW
Suite 900
Washington, DC 20005 USA
Phone: (202) 223-7800
Website: http://www.iedconline.org

American Planning Association (National Professional Association)
Economic Development Division
122 S. Michigan Ave., Suite 1600
Chicago, IL 60603 USA
Phone: 312-431-9100
Website: http://www.planning.org/economic/

Economic Development Quarterly Journal (Academic Journal)
SAGE Publications Inc
2455 Teller Road
Thousand Oaks, CA 91320-2218, USA
Tel: 805-499-9774
Website: http://edq.sagepub.com/

Economic Development Futures Journal (Online Journal/Research Center)
Post Office Box 43495
Richmond Heights, Ohio 44143-3495 USA
Phone: 440-449-0753
Website: http://www.don-iannone.com/edfutures

Economic Development Administration (Federal Government Agency)
U.S. Department of Commerce
1401Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202-482-5081
Website: http://www.commerce.gov/eda

Economic Development Directory (Online Global Directory)
Website: http://www.ecodevdirectory.com/

National Development Council (National Training Resource)
51 East 42nd Street
Suite 300
New York, NY 10017
Phone: 212-682-1106
Website: http://www.nationaldevelopmentcouncil.org/

CoreNet Global (Site Selection Professional Association)
260 Peachtree St., Ste. 1500
Atlanta, GA 30303
Phone: 404-589-3200
Website: http://www2.corenetglobal.org/home/index.vsp

Industrial Asset Management Council (Association of Corporate Real Estate Officials)
6625 The Corners Parkway
Suite 200
Norcross, Georgia 30092 USA
Phone: 770-325-3461
Website: http://www.iamc.org/index.shtml

Voices and Choices in NE Ohio

More cooperation between local municipalities in northeast Ohio would help improve the area's economy, residents said at a recent brainstorming meeting.

About 900 people from 15 different counties in the region attended a forum on Saturday sponsored by Fund for Our Economic Future, a collaborative effort involving more than 70 philanthropic organizations. The fund, founded last year, promotes regional economic development through a collaborative approach.

KC Rallies Its State Partners

I like to see this...states working together because they share a metropolitan economy.

The governors of Kansas and Missouri endorsed a plan Wednesday to lure new jobs to the metropolitan area by promoting it as a single unified region despite state boundaries.

The OneKC campaign backed by Kansas Gov. Kathleen Sebelius and Missouri Gov. Matt Blunt aims to promote the business economic incentives of both states and the 18 counties and 50 communities that make up the greater Kansas City area.

Read more here.

Colorado Debates Future Development Path

Local economic development officials and state lawmakers are at odds over how to best recruit and retain companies in Colorado.

The Nov. 1 passage of Referendum C is expected to give lawmakers more leeway on how to spend state funds. But some legislators, heading into an election year, say now isn't the time for new programs that cost the state money.

Read more here.

ED Futures Newsletter, November 13, 2005

Dear ED Futures Subscriber:

The future of the global automotive industry has been very much on my mind for some time. Those who know me are aware that I spent a good piece of my career working in the industry back in the late 1970s and early 1980s.

The industry is teetering, and it can no longer endure the weight of severe global overcapacity any longer.

One bit of advice to my economic development friends: Be aware that whatever growth occurs in the industry at this point in time (and through 2006) is a zero-sum game. This means that one company's growth is at the expense of another, and one place's growth is at the expense of another. So, if you have an auto-related facility about to be shuttered, remember it's because another one is being built somewhere else by another company.

Call it the competitive economic development marketplace if you like, but this is an industry that has gobbled up a huge share of our scarce financing resources over the past quarter century and it will not (cannot) make any long-term commitment to any place where it operates.

What happens in the U.S. , Japanese, German, and Korean automotive industries are not separate issues and decisions. That's because the automotive industry is a global industry. It's all one big ball of string today that is unraveling quickly.

Read the articles I've posted during the past couple weeks and think about what is going on. New plants being built in Texas come at the expense of existing production capacity in Michigan and other places. Headquarters being built in Tennessee come at the expense of those in California. These are not separate decisions. And frankly, it's all about cost-savings, and not innovation and true competitiveness.

This is not the time for more old-line, small-minded economic development thinking. This is the time for a fresh wave of global thinking that allows everyone to see the big picture and how they fit into it. As economic developers, we must change how we think!

Enough of the rant.

Here are some articles from the past week that you might enjoy reading:

Research Triangle Regional Partnership Plays Up Its Recruitment Ranking

Future of Green Building

Nissan Packs for Tennessee

Target Industry Profile: Automotive Manufacturing

Five Keys to Successful Teams

Specialty Retailer Attraction

Target Industry: Pharmaceuticals

Target Industry: Fabricated Rubber and Plastic Products

On a final note, watch future issues for the results of ED Futures' Economic Development Scan and its survey on Economic Well-Being.

Feel free to tell others about ED Futures. They can use this sign-up link.

As always, I look forward to hearing from you.

Sincerely,

Don Iannone
ED Futures Publisher
Tel: 440.449.0753
Email: dtia@don-iannone.com

Research Triangle Regional Partnership Plays Up ED Futures Recruitment Survey Results

Research Triangle Region, N.C. - The Research Triangle Regional Partnership (RTRP) ranks among the top five regional/metro business recruitment programs, according to a new survey of top thought leaders in the field of business recruitment.

"I was not at all surprised at RTRP's strong showing," said Don Iannone, publisher of Economic Development Futures Journal, which conducted the survey. "There has been a good bit written about the region, which has been highly studied as an economic development success, and seen for a long time as a leader in technology-based economic development."

Read the full RTRP story here.

Meanwhile, Indianapolis was disappointed it did not make the list. Go here.

Looming Problems at VW

SEAT SA says it is seeking layoffs as a cost-cutting measure. The company is targeting 1,346 jobs. A subsidiary of Volkswagen AG, SEAT employs about 16,000 people – most of whom work at the company’s assembly site in Barcelona, Spain. More here.

Meanwhile, an auditor's investigation into claims of bribery and kickbacks at Volkswagen detailed more than $1 million in company money that two former executives spent on luxury trips and parties, VW said last week. Read more here.

Auto Watch

Those who follow ED Futures know I have been concerned about the automotive industry for a very long time. I see major changes ahead. Here is the latest sign of major changes ahead in the industry.

I predict 2006 will be a time of great restructuring in the industry as it struggles to deal with it overcapacity issues and failure to innovate. This won't be pretty!

DaimlerChrysler has drawn curtains on its relationship with Japanese car maker Mitsubishi Motor, selling its remaining 12.4 percent stake in the company to Goldman Sachs for an undisclosed price. More here.