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Performance Measurement for Economic Development: EDAC 2012 Conference Iqaluit, Nunavut, September 29 – October 2 Jay Amer, Amer & Associates Economic Development Magdy ElDakiky, Regional Economic Development Branch, OMAFRA. Content:. Performance Measurement What is it all about?

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  1. Performance Measurement for Economic Development:EDAC 2012 ConferenceIqaluit, Nunavut, September 29 – October 2Jay Amer, Amer & Associates Economic DevelopmentMagdy ElDakiky, Regional Economic Development Branch, OMAFRA

  2. Content: • Performance Measurement • What is it all about? • Why should we care? • Why focus on outcome? • Commitment and leadership • Performance Measurement in Economic Development • Why is it different? • Landscape in Ontario • Performance Measurement Resources Project Highlight

  3. Performance Measurement: What’s it all about? “The tragedy in life doesn't lie in not reaching your goal. The tragedy lies in having no goal to reach.” Benjamin Mays “However beautiful the strategy, you should occasionally look at the result”. Sir Winston Churchill

  4. The New Currency • The ability to report on the “Outcomes” or the impact of our work is being demanded across all organizations (what are we accomplishing for the $ we spend and impacts its having…?) • All levels of governments are increasingly being asked to report on outcomes (what they achieve) rather than outputs (what they do). • Outcomes are often what the general public are really interested in.

  5. Drummond Report From the Drummond Report “the system should be more flexible and work to reduce administrative costs by measuring outcomes rather than inputs” “strategy based on clear targets and performance measures linked to outcomes” “best public service would set clear objectives, use proper metrics to measure progress and provide clear accountability” “As data on outcomes are often poor and inconsistent, it is unclear whether the programs are achieving any economic benefits for Ontario” EDAC report identified the need for performance measurement resources to support economic development. 5

  6. Why should we care about this thing called Performance Measurement?Its About……..

  7. Its about ….. Sometimes when money is on the line… • Mechanism for Accountability – Responds to “new currency” of outcomes and results being demanded by decision-makers. • Provide evidence to decision makers and the public on the impact (Outcomes) resources $, efforts (the work we do), and the impact its having (results achieved) – • Linking activities to outcomes • What we invest ($ resources, people facilities etc) • What we will do (activities) and what is done (outputs) • Why we do it (vision) and what results will be achieved (outcomes) Provides the “Big Picture”view of our EcDev strategy and help us to understand the key drivers that contribute to our economic development outcomes and using that information to monitor manage our efforts and adjust if necessary for overall continuous improvement.

  8. Its About….. Being Relevant ~ • Clearly demonstrates (tangible evidence) of EcDev value: • Measured not in terms of what’s being done…but rather what’s being achieved • Fuels alignment and collaboration across jurisdictions and regions • Tangible evidence based on real data, not anecdotes and subjective judgments • Providing tangible evidence of our value or relevance to our clients or risk being seen as irrelevant!

  9. Now What? • Performance measurement isn't new to economic development. • So what do we need to do to make this work? Here are some of my observations….. • It’s about people and commit to performance measurement. • Leadership – at all levels. • Right information • Collaboration across jurisdictions and regions and sharing best practices

  10. We have a Plan… Now What? • We have an EcDev strategic plan – now let’s focus on our strategies: • What are the outcomes we are trying to affect? How do we measure if we achieved them partially or completely? • How to measure and report on “how much we achieved” rather than “how hard and efficient we worked”?

  11. Landscape? • Increasing pressure for communities to quickly respond/adapt to economic pressures in a rapidly changing global economy • Competition amongst actors for economic development ‘wins’ – while communities often compete with each other, there is increasing attention being given to regional and collaborative approaches. New term Co-opetition is gradually evolving. • Need for better alignment of and reporting on outcomes at local/regional/provincial level. • Increasing emphasis on accountability and results • Very little resources to support economic development professionals

  12. Challenges related to effectively measuring grant performance: A lack of appropriate performance measures and accurate data can limit agencies’ ability to effectively measure grant program performance. This can affect the ability of federal agencies to ensure that grant funds are effectively spent. (Government Accountability Officer GAO and federal inspectors general (IG) of the US September 2012)

  13. Three main objectives for the proposed resources: Support effective and outcome-based Economic Development Consolidate common terms and definitions Create a common platform that will help align regional and local economic development strategies Opportunities for a new EcDev Resources: OMAFRA economic development resources are well recognized and successfully utilized. New resources on PM can be beneficial Rural policy report and discussions with EcDev professionals identified PM as an area where our clients will benefit from EDAC Report highlighted the importance and provided some directions Few initiatives started outcome-based economic development strategies Project Opportunities and Objectives :

  14. PMS Phase I: • Building the foundation bottom-up • Local, national and international literature review • Jurisdictional scan in Ontario • Local (5 most recent EcDev Strategic Plans) • Regional (3 most recent EcDev Strategic Plans) • Web survey for economic development officers (35) • One on one and phone interviews • Focus groups with economic development officers (28) • Draft resources (report and training material)

  15. Focus Groups:

  16. Did your EcDev plan have measurement approaches? Yes 50%No 50% Are we measuring ?

  17. How important we think it is? • How important we think it is? Do you feel that initiating and regularly reviewing the results of a performance measurement process would help you in: • your overall economic development role?Extremely helpful 62%Somewhat helpful 25%Not very helpful 0%Not helpful at all 13% • securing support from elected officials • Extremely helpful 50%Somewhat helpful 25%Not very helpful 13%Not helpful at all 12% • C. more involvement from business community • Extremely helpful 50%Somewhat helpful 25%Not very helpful 13%Not helpful at all 12%

  18. Who measures? Who is best able to measure? Economic development staff 71% Community/ volunteer groups 14% Others 14% • Other: Led by Council and CAO.

  19. Keep it fairly simple, yet accurate, to maintain Technology might be useful. How this could potentially be integrated into databases or systems for tracking Need to agree on the measures we are using, develop a tracking system and develop a reporting system A common approach would be welcome Suggestions on sources of information Don't do it. It is a slippery slope Keeping any metrics as few as possible Most ED departments do not have the time/resources to measure (Funding needed) • Recommendations from EDOs: “When dealing with data, approximately right is better than precisely wrong.” Carl G. Thor

  20. Phase II: • Provincial Resources • Pilot training with Economic Development Officers • Group training delivery across the province • Resources are made available in different formats

  21. Resources: • Guidebook for economic development practitioners • One day training for economic development practitioners

  22. Resources Focus: • Develop Logic Model • Linking activities to outputs and outcomes • Identify Performance Measures • Avoid the boil the ocean approach • Develop Performance Framework • Methodology, data source, custodians, frequency, etc. • Local/Regional collaboration • Attribution • Build Capacity • Building the culture • Accountability

  23. Magdy ElDakiky, PhD Regional Economic Development Branch Ontario Ministry of Agriculture, Food and Rural Affairs 1Stone Rd. West, 3rd SW Guelph, ON N1G 4Y2 Phone: (519) 837-6396 Fax:     (519) 826-4328 magdy.eldakiky@ontario.ca www.omafra.gov.ca/rural Contact Information:

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