July 19, 2005

Community Preparedness:Helping Community Leaders Prepare

for Industrial Prospects

Community Preparedness:Helping Community Leaders Prepare

for Industrial Prospects

2005 Community and Economic Development Conference

American Public Power Association

Phil ScharreManager, Community Development

Tennessee Valley Authority

Overview of TVA

• Established 1933

• 30,000+ megawatts

• Diverse assets:– Hydro Electric– Fossil– Nuclear– Renewable Generating Resources

One Source. Seven States.

TVA Mission

• Supporting sustainable economic development

• Supplying affordable, reliable power

• Managing a thriving river system

One Source. Seven States.

TVA Today

• $7.5 billion in annual revenue

• 80,000 square miles of service area

• 158 distributors, 8.5 million residents

• 62 directly-served industrial customers

• TVA is completely self-financed– Receives no taxpayer dollars

One Source. Seven States.

Economic Development Overview

One Source. Seven States.

• Goals– Jobs– Capital Investment

• Mission– Increase Jobs– Increase Wealth

Services and Programs

• Marketing Development

• Technical Services

• Business Development

• Community Development

• Loan Funds

www.TVAed.com

www.TVAsites.com

One Source. Seven States.

Community Preparedness

Today’s Session will help you understand:

• The need for Community Preparedness

• The key components of Community Preparedness

• The process being used to implement Community Preparedness

One Source. Seven States.

What are the common mistakes made by communities in handling industrial prospects (inquiries, visits, responses, etc.)?

Common Mistakes…

• Inadequate or untimely response to inquiry or RFP

• Lack of appropriate and ready information on the community and/or site

• Wrong people involved in site visit

• Lack of ability to present a unified community

• Inability to make decisions or close the deal

• Poorly planned and handled site visit

Common Mistakes…

• Focus on irrelevant features of community

• Not making the “business case” for location

• Not using existing industries in the process

• Not using regional assets to help sell

• Failure to involve nonlocal economic development partners

• Failure to differentiate community from competitors

• Poor sales behaviors (too much selling, not enough listening)

What are the reasons why communities make these mistakes?

Reasons why…

• No controlled sites or buildings

• Poorly-prepared sales team

• No clear agenda for site visit

• Lack of ability to respond to proposals

• Inadequate technology to prepare information and materials

• Inadequate web site

• Lack of understanding of the site selection process

Reasons why…

• Lack of understanding of responsibilities among community leaders

• Lack of understanding about the prospect and their industry

• A weak business/industry retention program

• Lack of regional partnerships

• Poor relations with nonlocal economic development partners

• Limited development/training for local economic development professional and community leader

Key Components of the Community Preparedness Program

• Training Workshop

• Action Planning Workshop

Training Workshop

• Module 1 Site Selection Process

• Module 2 Community Sales Team

• Module 3 Preparing for the Prospect

• Module 4 Selling Your Community

• Module 5 Site Selection

Consultant’s Perspectives

and Q&A

Module 1 Site Selection Process

• How Firms Make Their Decisions

• Three Phases of the Site Location Process

• Factors Considered in the Site Location Process (Country/Regional, Business, Community, Site)

• Activity: Mock Prospect Presentation

Module 2 Community Sales Team

• Assembling the Team – Characteristics and Guidelines

• Responsibilities/roles of Team Members

• Team-selling Tips

• Activity: Scenario Discussions – The Ego Issue, The Unannounced Visit, Confidentiality, Regionalism, The Prospect Meeting

Module 3 Preparing for the Prospect

• Three Areas of Prospect Handling – Prepare, Present, Close

• Planning for the Visit – Assess the Prospect, Get Organized, Prepare Agenda

• Conducting the Prospect Visit – Guidelines

Module 3 continued

• Five Steps to Closing the Deal – Pre-visit Preparation, Opening the Visit, Smart Questioning, Selling, Closing

• Understanding the Competition

• Activity: Selling and Closing Practice

Module 4 Selling Your Community

• Strategic Approach

• Key Factors in Economic Development Marketing

• Staying on Message

• Using the Internet

• Retention and Expansion

• Regionalism

Module 5 Site Selection Consultant’s Perspectives and Q&A

Site Selection Process:

1. When do quality of life factors become important?

2. What role does technology play in the site selection process?

3. What are the issues communities should be aware of when dealing with a foreign prospect?

4. What examples can you share to demonstrate how communities have successfully differentiated themselves in the site selection process?

5. Is there a typical size/investment level that most companies would engage a site selection consultant to conduct their search?

Typical Questions:

Module 5 Site Selection Consultant’s Perspectives and Q&A

Community Preparation:

8. Discuss the importance of available buildings, including spec buildings, in enhancing the community’s marketability.

9. What kind of marketing materials should a community have to effectively promote themselves?

10. Discuss the importance of a strong, united and informed leadership team in supporting the local economic development professional.

Incentives:

6. Describe the role incentives play in the site selection process.

7. What are some examples of effective/creative incentives that you have encountered?

Module 5 Site Selection Consultant’s Perspectives and Q&A

Generating Prospects:

12. What can a community do to find prospects? Discuss the role of the state economic development office, the utility, etc. in prospect generation and how the local economic development office can generate their own leads.

13. Discuss the importance of a community to identify specific industries to market their communities too.

Small Community Strategies:

11. What can small communities do to be more competitive?

Module 5 Site Selection Consultant’s Perspectives and Q&A

Community Visits:

14. What are some common mistakes communities make in the site selection process? Describe your worst and best community visits.

Closing:

16. What are the current trends in the site location game?

17. What are your key observations (strengths and weaknesses) about this community?

Regionalism:

15. Why is it important for communities to make their “boundaries disappear”? Share some stories about when communities were successful and unsuccessful.

Action Planning Workshop

Identify action plan including these topics:

• Marketing

• Sites and Buildings

• Community Support

• Partnerships

• Prospect Handling/Sales Team

Key Characteristics of the Community Preparedness Program

• Focus on understanding site selection process and how to determine the project's key criteria 

• Emphasizes local roles and responsibilities 

• Illustrates how to prepare for a prospect visit 

• Emphasizes need to differentiate from competitors

Key Characteristics of the Community Preparedness Program

• Training includes hands-on, practical activities

• Utilizes site selection consultant

• Involves range of community leaders (approx. 20)

• Action planning component