Presentation Transcript

1. World Investment Forum 2012 Better Facilitation for Investment 20 April 2012
2. About OCO Global Economic development consultancy incorporated in 2001, 35 staff in 4 international offices. 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: Consulting Strategy; benchmarking; organization development; marketing / propositions; client training Outsource Solutions Trade & investment support and lead generation Analytics Business intelligence , research, insight, and profiling; in-house software solutions (CRM, Websites, pipeline development)
3. The Investors Point of View Alignment with corporate strategy Speed of implementation Synergy with existing operations Due diligence: ‘show stoppers’ ‘forward planning’ Customer and supplier activity Where to invest? Financial analysis: impact on the bottom line First-mover advantages Government incentives and support Labor and skills availability Site and property availability Track record in the sector Competence (R&D) availability
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 ACTIONS TOOLS STAGE 1 STAGE 2 STAGE 3 STAGE 4 An IPI Role at Every Stage
5. Aligning to the Corporate Process Corporate Decision Process The IPI Role 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 Understand the types of projects you’re competing for Identify key location factors: quality and cost 1. Project Design - Identify, and collect data on benchmark locations - Proposition & website marketing - Get on the short list! 2. Long List of Locations - Investor facilitation – support, research, information provision 3. Short List of Locations 4. Validation Visits Site visits, more information provision Then implementation and aftercare!
6. A Company’s Key Location Drivers LABOR Salaries, On-costs, Attrition, Severage Costs, Benefits, Recruitment COST LOCATION FACTORS PROPERTY Rents, Acquisition, Fit-Out, Taxes UTILITIES Electricity, Gas, Water, Telephony, Broadband STATE AID / GRANTS CORPORATE TAX LABOR SKILLS Qualifications, Availability, Universities, Experience, Languages QUALITY ATTRACTIVENESS Visitor Profile, Amenities, Quality of Life LABOR FLEXIBILITY Max Hours, Leave, Overtime, Unions CONNECTIVITY Road and Rail Networks, No. of Flights, Proximity to Airports INFRASTRUCTURE Regulation, Patents, Government Support RISK Security, Political, Economic
7. The Changing Face of FDI Source: fDi Markets and OCO Global
8. Ideal location Making the Decision High cost, high quality location option Medium cost, medium quality location options Uncompetitive location options Low cost, low quality location option
9. 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!
10. 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
11. 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