Click to edit Master title style 1 World Investment Forum 2012 Better Facilitation for Investment 20...

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Click to edit Master title style 1 World Investment Forum 2012 Better Facilitation for Investment 20 April 2012

Transcript of Click to edit Master title style 1 World Investment Forum 2012 Better Facilitation for Investment 20...

Page 1: Click to edit Master title style 1 World Investment Forum 2012 Better Facilitation for Investment 20 April 2012.

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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

GE

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

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Q

J

P L

I

0

20

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60

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100

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0 20 40 60 80 100 120 140 160 180 200

Qua

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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