Working through Consulting firms: the implications of direct facilitation

1. Working through Consulting firms: the implications of direct facilitation GIPB Event Istanbul, Turkey May 2013

2. Introduction to OCO Global • What are the key activities in investment promotion? • What roles do consultants play? • Working WITH IPIs • Working FOR IPIs • Q&A

3. About OCO • Established 2001 • 50 Staff • Offices in Belfast, London, Paris, New York and Sao Paolo • Services • Site Selection/CLS, Grants/Incentives • Trade and Investment strategy • Business Intelligence • Lead Generation/representation • Clients • IPIs, EDOs, IPAS, • OCO Corporate • International Orgs, NFPs OCO Services Cube

4. Key Activities in Investment Promotion Funding & organisation Research Training Networking Lead generation Product development 1.Policy & Strategy 2.Investment promotion Events & outreach Market & sector prioritisation PR/Media Investment policy Marketing & promotion 4.Aftercare & Reinvestment 3.Investment Facilitation & Landing Monitoring & Intelligence Site visits Incentives Supply chain support Skills & Capabilities Account management Property search After sales/aftercare Connectivity to suppliers/clients Establishment

5. Role of Consultants in Investment Promotion WORKING WITH IPIs WORKING FOR IPIs Many consultants do both!

6. Examples of Consulting Firms

7. WORKING WITH IPIs

8. The Investor’s 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

9. Site Selection Methodology • 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 • Discussion on strategic context and business drivers ACTIONS TOOLS STAGE 1 STAGE 2 STAGE 3 STAGE 4 An IPI Role at Every Stage

10. 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 • 3. Short List of Locations - Investor facilitation – support, research, information provision • 4. Validation Visits • Site visits, more information provision • Then implementation and aftercare!

11. A Company’s Key Location Drivers LOCATION FACTORS LABOR Salaries, On-costs, Attrition, Severage Costs, Benefits, Recruitment COST 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

12. 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

13. GIPB: 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

14. Conclusions Working WITH IPIs • 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

15. WORKING FOR IPIs

16. Good Practice / Weak Practice What consultants can bring to IPIs • Efficiency & Process improvements • Independence (Assessment impacts) • Best practice insights • Networks & credibility • Sector industry expertise What consultants can’t / shouldn’t bring to IPIs • Unfettered access to their clients • Delegated authority to operate in Government organisations • Control over the client relationship • Performance management/MIS • Capacity solutions (in longer term)

17. Different Levels of Focus & Engagement High involvement Policy & Strategy Outsourced investment promotion Training Marketing & PR Lead Generation Incentives & Property Business Intelligence Low involvement High intensity/Long term Low intensity/Short term

18. Trends in Consultants Working for IPIs • Business intelligence and use of data mining tools, CRM & technology platforms to target clients • Partnerships with private sector to fund or second staff where there are mutual gains • Payment by results • Outsourcing of oversees networks/offices and lead generation, events and investor outreach to improve agility/flexibility • Investment in client segmentation and differentiated service levels to improve client reach, conversion and retention • Marketing and propositions – a shift from place marketing to business solutions marketing to a narrower audience

19. Scope for Outsourcing Investment Promotion Phases Plan Pursue Win Retain

20. Agility and operational flexibility are features of the most effective trade and investment agencies today. This means fewer international offices and fixed geographical footprints and more partnership with external specialists. OCO offers a 3-tier service that reflects the different needs, budgets and expectations of our client base. • Full client representative office (Front Office) • Dedicated office and address • Card carrying staff • Trade, Investment and marketing services • Missions and client hosting In-market representation • Sales and marketing support (Middle Office) • Investment lead generation • Trade leads and pipeline development • Market and company profiling and analysis • PR and marketing Sales support & lead generation • Fast track services (Back Office) • Unqualified leads/market watch • Trade and investment missions • Direct marketing/cold calling • Appointment setting FDI and trade fast track services Lead Generation & Representation $$$$ $$$ $$

21. Case Studies

22. Representation: State of Florida, USA • Scope of Work • Since 2005 OCO have been representing the State of Florida in the France, Italy, Benelux and more recently in UK and Ireland. • We operate fully serviced offices and staff working full time on behalf of the state in Paris and London supported by back office services from Belfast. • Role is to provide investment leads from these markets and to connect Florida companies with trade opportunities/buyers from Europe. • Outputs • OCO has investment targets to meet each year in respect of projects, jobs and capex in Florida’s key sectors and a $ value of trade deals which must be introduced. • We also have planned and delivered a number of high level Governor missions to UK, France and Germany. Photos: TOP Governor Rick Scott with Ian King, CEO of BAE System (meeting scheduled by EFI UK); BOTTOM Governor Rick Scott, Gavin Cleary (EFI UK) and Manny Mencia (EFI) with Nigel Stein (CEO of GKN Group), Mike McCann (SVP Business Development of GKN) and Marcus Bryson (President/CEO GKN Aerospace)

23. Managed Services: UKTI • Scope of Work • Since 2011 OCO are part of the consortia led by PA Consulting responsible for delivery of services to investors in the UK. • Our role is to develop the investment propositions for some 50 sectors that UKTI is promoting for investment and trade, and to develop customised responses to the investment enquiries received by UKTI. • Outputs • In our first year of operations to end of March 2012 the UK secured more than 1400 investments from overseas companies and created 100,000 jobs. • OCO have responded to more than 400 enquiries and developed more than 50 investment propositions on the UK that are being used to target investment. • We are heavily involved in training and capacity building for the wider network.

24. Conclusions Working FOR IPIs • Use of consultants and managed service providers can significantly amplify budget, reach and performance among IPIs • Consultants bring agility, connectivity to the industry and operational freedom that cannot easily exist in government • The most effective consulting engagements have built in success fees or incentive award performance • Clients (IPIs) need to adopt professional standards of project management, control and reporting to get the most from their consulting partners • Independence and strategy for managing conflicts are important to discuss and agree at the outset • Clients & consultants need to distinguish between design or development work versus delivery/implementation. The time frames, control and cost profiles are very different.

25. Contact Us OCO Global (Belfast) 6 Citylink Business Park, Belfast BT12 4HB, Northern Ireland Tel: +44 (0) 28 9024 1849    Fax: +44 (0) 28 9024 2597 Key contacts: Judith Walker, Dawn McCoy and Therese McCrory OCO Global (London) 146 Fleet Street, London EC4A 2BU, UK T: +44 (0) 207 8220 710     F: +44 (0) 207 353 1081 Key contact: Gavin Cleary OCO Global (Paris) 65, Rue d'Anjou, 75008 Paris, France T: +33 (0)143 87 56 40 Key contact : Laurent Sansoucy OCO Global (New York) 45 Broadway, 21st Floor, New York, NY10006, USA T: +1 646 350 3490 Key contact: Joe Phillips 65, Rue d’Anjou /angle Boulevard Haussmann,OCO Paris