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Transcript of Click to edit Master title style 1 World Investment Forum 2012 Better Facilitation for Investment 20...
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World Investment Forum 2012
Better Facilitation for Investment
20 April 2012
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About OCO Global
Clients include IPIs across the world as well as private sector clients.
OCO’s services to companies are focused on LOCATION ADVISORY and international market assessments.
OCO’s services to IPIs include:
– ConsultingStrategy; benchmarking; organization development; marketing / propositions; client training
– Outsource SolutionsTrade & investment support and lead generation
– AnalyticsBusiness intelligence , research, insight, and profiling; in-house software solutions (CRM, Websites, pipeline development)
Economic development consultancy incorporated in 2001, 35 staff in 4 international offices.
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Customer and supplier activity
Due diligence:‘show stoppers’‘forward planning’
Government incentives and support
Site and property availability
Speed of implementation
Synergy with existing operations
Track record in the sector
Labor and skills availability
Where to
invest?
Financial analysis: impact on the bottom line
First-mover advantages
Alignment with corporate strategy
Competence (R&D) availability
The Investors Point of View
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Project
Design
•Agreement on key drivers, project objectives
•Identify candidate locations
Long List of
Locations
•Analyse threshold criteria at macro-level
•Geographic units, scale
•Interim reporting
Short List
of Locations
•Validate desk sources with primary research
•Analysis at local levels: connectivity, state aid etc
•Report on recommended cities for visits
Validation Visit
s
•Validate research through “on the ground” presentations
•Final Reporting
ACTIONS TOOLS
• Discussion on strategic context and business drivers
STA
GE
1S
TAG
E 2
STA
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3S
TAG
E 4
• Desk research on location benchmarks• Various data sources
• Location expertise• Network of contacts with recruiters, IPIs,
current companies, real estate advisors
• Primary research from recruitment consultants, investment promotion intermediaries
• Apply weightings, cost / quality score where necessary
Corporate Location Methodology
An IPI Role at Every Stage
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Corporate Decision Process
1. Project Design
2. Long List of Locations
- Understand the types of projects you’re competing for
- Identify key location factors: quality and cost
- Identify, and collect data on benchmark locations
- Proposition & website marketing- Get on the short list!
3. Short List of Locations
- Investor facilitation – support, research, information provision
4. Validation Visits
Proactive Investment Promotion:
Align message and information to corporate location process
Go from reactive approach to proactive approach
Ensure that information given to investor is aligned to actual requirements
Listen to the investor
Aligning to the Corporate Process
- Site visits, more information provision- Then implementation and aftercare!
The IPI Role
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A Company’s Key Location Drivers
LABOR Salaries, On-costs, Attrition, Severage Costs, Benefits, Recruitment
PROPERTY Rents, Acquisition, Fit-Out, Taxes
UTILITIES Electricity, Gas, Water, Telephony, Broadband
STATE AID / GRANTS CORPORATE TAX
LABOR SKILLS Qualifications, Availability, Universities, Experience, Languages
CONNECTIVITY Road and Rail Networks, No. of Flights, Proximity to Airports
INFRASTRUCTURE Regulation, Patents, Government Support
LABOR FLEXIBILITY Max Hours, Leave, Overtime, Unions
ATTRACTIVENESS Visitor Profile, Amenities, Quality of Life
RISK Security, Political, Economic
COST
QU
ALIT
Y
LOCA
TIO
N F
ACTO
RS
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The Changing Face of FDI
2003
2010
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
43%
23%
57%
77%
Location Determinants for All Projects 2003 & 2010
Cost Factors Quality Factors
Source: fDi Markets and OCO Global
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AF
DC
BE
H
G
K
RNO
M
Q
J
P L
I
0
20
40
60
80
100
120
140
0 20 40 60 80 100 120 140 160 180 200
Qua
lity
scor
e (a
vera
ge o
f all
loca
tion
s = 1
00)
Operating Cost Index (Average = 100)
Operating Cost vs Quality
Making the Decision
Medium cost, medium quality location options
Ideal location
Low cost, low quality location option
High cost, high quality location option
Uncompetitive location options
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Optimizing Your FacilitationWhere Do IPIs Sometimes Fall Down?
Responsiveness. An IPI that does not:
– Initially respond to emails / telephone call
– Show enthusiasm for a project
……..has little chance of repairing the damage
On occasions, information provision can:
– Lack detail
– Not be relevant to the project / not address the questions asked
– Not be specific enough, giving general data that the company could find themselves
– Not be well consolidated, so it is easy to digest for the company or consultant
– Not be provided in a timely manner
– Not do enough do showcase the location – IPIs are sales people!
But lets not forget many IPI provide high levels of service!
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Optimizing Your FacilitationHow Can You Improve?
Remember, your role is not complete by providing information – that is where it starts and its then time to pursue that lead
Do more research before you get inquiries – know everything there is to know about your location, particularly in your target sectors
Differentiate your presentation – make it slick but don’t overcomplicate – credibility is key
Differentiate the content – benchmarking your location in a good light against competitors is a powerful message
Above all, LISTEN to the investor, UNDERSTAND their needs, and TAILOR
your facilitation services specifically for that inquiry
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Optimizing Your FacilitationPractical Steps to Make Those Improvements
Have dedicated research specialists within your organization, so detailed, up-to-date information is continuously available
Put yourself in the guise of the private sector and think like investor – your services should be giving the solutions not tying them down in bureaucracy
Be flexible, learn from your mistakes. Ask companies and consultants about your facilitation
Talk to your existing business base – learn from them and get them involved
Don’t be afraid do ask other organizations for input – but maintain ownership as the key client contact