5.0. SR 08-12-1996~ity of
ver
MEMORANDUM
Item 5.
TO:
FROM:
DATE:
SUBJECT:
Mayor & City Council
Economic Development Authority
Housing and Redevelopment Authority
Utilities Commission
Chamber of Commerce Representatives
Bank Presidents - Dick Gongoll
Jim Simpson
Paul T. Steinman, Director of Economic
Development
July 25, 1996
Strategic Planning
Introduction
Over the past several months, discussion has occurred regarding undertaking
an economic development strategic planning process. The purpose of this
memo is to outline a number of issues regarding undertaking such a process,
and for the City Council to authorize the Economic Development Authority to
begin to take the lead role in this process.
Background
Due to discussions which have occurred over the past several months and
questions which have been raised regarding an economic development
strategy, staff has examined undertaking a strategic planning process for
economic development. Within this examination, staff has attempted to
answer many of the questions associated with strategic planning and how
this process could be a benefit to the City of Elk River.
What follows are several questions which are typically raised regarding the
strategic planning process:
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
Strategic Planning
July 25, 1996
· What is strategic planning?
Strategic planning is defined as "the process by which an organization
env{s{ons {ts future and develops the necessary procedures and
operations to achieve that future." There are three key aspects of this
definition:
"Envisioning" involves a belief that aspects of the future
can be influenced and changed by what we do now.
o
Strategic planning focuses on the process of planning
rather than on the plan that is produced.
3. Strategic planning is never completed.
Strategic planning differs from comprehensive planning in four
fundamental ways:
Strategic planning relies more on identifying and
resolving issues, while comprehensive planning focuses
more on specifying goals and objectives.
Strategic planning emphasizes assessment of the
environment outside and inside the organization far more
than comprehensive planning.
Strategic plans have a "mission" statement, or a "vision of
Success".
Strategic planning is more action oriented than
comprehensive planning.
· Why undertake strategic planning and how would this
process benefit the City of Elk River?
The following are reasons why the City of Elk River should develop
and follow a strategic plan for economic development:
Provide focus and direction for the city.
Provide information on the purpose and direction of the city
to the general public as it relates to economic development.
Strategic Planning
July 25, 1996
Makes city proactive instead of reactive to economic
development.
Provides the general public with a greater opportunity to
help shape the city's economic development programs and
policies.
More clearly defines the roles and responsibilities of
employees, Councilmembers, EDA, and HRA.
Creates more of a "team effort" for everyone in the city
involved in economic development.
Provides a firm foundation for controlled growth in the future
within the city.
· What are we going to accomplish by strategic planning?
The following is a list of items we hope to accomplish by developing a
strategic plan:
Establish a five year economic development goal and
implementation plan.
Establish a two year action plan identifying strategies to
attain such goals.
Identify specific groups and/or individuals and their
respective responsibilities associated with completion of
activities within the two year action plan.
Clearly define the mission of the city regarding economic
development.
· Who would provide the necessary leadership to organize
and undertake the strategic planning process?
Staff is proposing at this time that the Council provide direction to the
Economic Development Authority to assume the position of
steerheading the strategic planning process. Under this scenario it
would be appropriate that EDA President Jeff Gongoll would assume
the role of Chairman of the Strategic Planning Task Force. This
position would be responsible for aiding the facilitator in keeping the
Strategic Planning
July 25, 1996
direction and focus of the group on the relevant issues of strategic
planning. Staff will provide support to the Task Force.
· Who would be represented on the Strategic Planning Task
Force?
Staff is proposing at this time that the following groups or individuals
comprise the members of the Strategic Planning Task Force. It is
further recommended that the assumed Chairman of the Strategic
Planning Task Force, Jeff Gongoll, be allowed to appoint specific
members of the Task Force if determined appropriate.
Mayor and City Council
Economic Development Authority Commissioners
Housing and Redevelopment Authority
Commissioners
Utilities Commission Members
Chamber of Commerce Representatives- (2)
Bank Presidents - Dick Gongoll/Jim Simpson
Total number of members, aside from staff, is nineteen.
What is the work plan of the Task Force?
Staff will be undertaking development of a work plan for the Task
Force. In these discussions it is foreseeable that the work plan may
include about three to six meetings, depending upon the actual size of
the Task Force. Staff anticipates this process to last a total of
approximately three to six months. A preliminary outline of the work
plan, as proposed by potential facilitator Jim Brimeyer, is attached to
this memo for your information.
· Where do we proceed once the plan is in place?
Analyze and update the five year goal plan annually.
Annually realign the five year goal plan to concur with the
next year's forecasted economic conditions.
Analyze the effectiveness and update the two year action
plan.
Market the plan to the general public and business
community.
Strategic Planning
July 25, 1996
In an effort to keep the strategic plan current and recognized by the
community, it may be appropriate that the Task Force reassemble
itself periodically to assist in evaluation and modification of the plan.
Action Requested
Staff recommends the following actions:
1.)
That the City Council authorize the EDA to begin the Economic
Development Strategic Planning process.
2.)
That the EDA provide direction to staff for the expenditure of $3,000-
$4,500 from its 1996 budget for the funding of a facilitator, and that
Jim Brimeyer be hired to act as such facilitator.
Attachments: Proposal for Strategic Planning services from Jim Brimeyer
s:\councilXstrtpln.doc
The Bnmeyer Group, Inc.
EXECUTIVE SEARCH CONSULTANTS
March 29, 1996
904 Mainstreet
Suite 205
Hopkins, MN 55343
Mr. Pat Klaers
City of Elk River
13065 Orono Parkway
Elk River, MN 55330-1900
Dear Pat:
At a meeting several weeks ago you asked for a proposal to conduct a planning session to
develop the City's strategy for economic development. The purpose would be to determine the
course of action that the City, HR.A, and EDA should take and to provide direction for the new
Director of Economic Development.
Enclosed is a general outline as to how this might be done. It follows the model used in
Hopkins 'and some of the work that is being done in St. Louis Park.' The timeframe really
depends on the size of the group. If the group gets much larger than 12-15 or if it is necessary
to "politically' touch base with a larger number of organizations, we will have to talk about the
approach, time, and costs of doing a broader participative process. It is my feeling that since
this is the first time you have done this, that we confine it to a smaller group and see if we
have any success in identifying three to five major strategic issues. If the decision is made to
broaden the participation or extend the timeframe, we can always make that decision at that
time.
I look forward to working with you.
'Very truly yours, ..
ames Brimeyer
· President
(612) 945-0246 · fax (612) 945-0102
The Brimeycr Group, Inc.
EXECUTIVE SEARCH CONSULTANTS
Proposal for Consulting Services
City of Elk River, Minnesota
904 Mainstreet
Suite 205
Hopkins, MN 55343
OBJECTIVE:
To assist the City Council, Economic Development Authority, and Housing Redevelopment
Authority in a planning session to:
1. Develop a strategic plan for economic development for the City of Elk River.
2. Develop a vision or mission statement for economic development for the City of Elk River.
3. Identify a clear set of goals.
4. Establish priorities for the goals and direction of the Department.
5. Develop support for these goals among the City Council, EDA, and the HRA.
6. Develop communication and team work between the three agencies~ the City Administrator,
and the Director of Economic Development.
7. Develop a model for implementation of the goals established by the group.
APPROACH:
'Session 1 - 4 hours
* Develop a mission or vision .statement:using the strategic planning model.
* Identify. stakeholders
Assess the current strengths, weaknesses, opportunities, and threats of the organi:,ation
Session 2 - 4 hours
* Based on the information generated in Session 1, establish a list of issues.
Determine the priorities of these goals and issues.
Identify strategic issues.
(612) 945-0246 · fax (612) 945-0102