1. business and industrial

DRAFT OPERATIONS PLAN
OCTOBER 11, 2011
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WEDC
CREATING A PLAN FOR
WISCONSIN’S ECONOMIC
PROSPERITY
EXECUTIVE SUMMARY
The Wisconsin Economic Development Corporation (WEDC) operating plan covers the time
period from July 1, 2011 to June 30, 2012. This plan is guided by the strategic plan
approved by the WEDC Board on June 7, 2011, and by the state budget approved for WEDC
on June 26, 2011. The organizational structure aligns with the six key strategies in the
strategic plan, and this plan includes; performance expectations; key quarterly milestones;
and budgets for each operating division of WEDC. Division plans include a mix of short-,
mid-, and long-range actions intended to realize benefit today as well as a better Wisconsin
economy tomorrow.
The plan is guided by the same four principles that guided the strategic plan:
1.
Be Bold – Wisconsin demands bold, innovative actions to fundamentally change
economic development performance in the state. Accordingly, each WEDC division
plan includes actions to advance long-term benefit as well as achievement of annual
customer deliverables.
2. Engage Business – Wisconsin needs its business community engaged in WEDC
operations to ensure customer input and provide direction. The WEDC operating plan
is built using industry data and includes ongoing business involvement through use of
boards, committees, focus groups, and customer service feedback.
3. Operate as an Extended Enterprise – Achievement of ambitious economic goals
requires the alignment of many economic development entities across the state. This
operating plan treats partners as part of a virtual organization in which partners share
information, planning responsibilities and metrics.
4. Measure and Be Accountable. Wisconsin needs to maximize the return of its
economic development dollars. Accordingly, this plan includes investment in
management systems that support ongoing performance feedback, accountability
throughout the organization and transparency to stakeholders.
WEDC monitors and attempts to influence key macro-economic indicators for the state of
Wisconsin. Those indicators include overall business climate (CNBC annual ranking of
states), business start-up performance (Kaufmann Index for Entrepreneurial Activity and
Wisconsin Department of Financial Institution statistics), business leader confidence (Annual
Corporate Survey and planned quarterly WEDC survey), export growth (US Census Data)
and job growth (Department of Workforce Development). These are important but lagging
indicators of economic intervention.
WEDC performance will be tracked using four key indicators. These metrics are
‘controllable’ by WEDC actions, time appropriate and focused around the core mission.
Additional metrics are captured and used for management and reporting purposes. Those
dashboard indicators are:
•
2
Number of businesses impacted by WEDC – WEDC has a goal of making a positive
impact with 1000 Wisconsin businesses in FY12 (425 reported as receiving direct
financial assistance directly from WEDC in FY11). This is the number of Wisconsin
businesses that receive financial or technical assistance from WEDC or a WEDC
contract partner.
WEDC
CREATING A PLAN FOR
WISCONSIN’S ECONOMIC
PROSPERITY
•
Anticipated job creation or retention – WEDC has a goal of realizing 50,000
anticipated jobs created or retained as reported by recipients of the financial or
technical assistance provided by WEDC or WEDC contractors. (37,000 anticipated
jobs were reported by Commerce in FY11.)
•
Satisfaction with WEDC service (to be implemented in FY12) – WEDC will put in place
a standard measurement and evaluation methodology to obtain customer satisfaction
feedback.
•
Investment leveraged – WEDC has a goal of leveraging co-investment of 2.7:1 with
its resources (2:1 reported as leveraged in FY11).
•
Achievement of quarterly milestones – WEDC will track progress to all operating
division milestones in a simplified green (goal achieved), yellow (progress but not
achieved), and red quarterly progress chart.
Target Outcomes of Plan
The WEDC Operations Plan is designed to achieve the following key objectives:
•
1000 Wisconsin businesses benefitting from WEDC services
•
7 target industry sectors advanced by WEDC
•
50,000 anticipated jobs created or retained as a result of WEDC supported services
•
Launch of a statewide marketing program and industry target marketing promoting
Wisconsin
•
Advancement of an economic policy package including early stage investment capital
expansion
•
Development and implementation of a state international business development plan
•
Establishment of a measurement and evaluation system for real-time performance
feedback for WEDC and partners
•
Expansion of regional revolving loan funds in Wisconsin
•
Rationalization and one-stop access to the Extended Enterprise of Wisconsin economic
development
•
Identify and map economic development entities and develop plan of engagement
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WEDC
CREATING A PLAN FOR
WISCONSIN’S ECONOMIC
PROSPERITY
DIVISION OF ENTREPRENEURSHIP AND INNOVATION
Division Mission
To support Wisconsin’s start-up and emerging growth businesses by improving access to
capital for R&D and business start-up activities and cultivating an effective entrepreneurial
support network.
Division Goals
1. Directly assist 150 businesses in locating resources to support entrepreneur activity
2. Provide direct financial assistance to 45 companies
3. Leverage $250m in capital through financial assistance programs
4. Achieve leverage ratio from financial assistance of 10:1
5. Advance early stage capital investment initiative
Operations Plan
The Entrepreneurship and Innovation (E&I) Division achieves its goals by making early
stage investments in entrepreneurs and technology-based companies and by investing in
partners who provide entrepreneurship support services. E&I will implement programs that
link Wisconsin’s economic development assets and support initiatives that stimulate start-up
companies and angel investment. This Division will invest in companies developing and
commercializing innovative products or services with focus on companies conducting R&D
activities, facing prolonged product development times or with significant regulatory
barriers.
E&I will invest up to $11 million in early stage loans to 40-50 businesses and will manage
the existing portfolio of 186 businesses. Along with its partners, E&I will provide
entrepreneurs and investors with a comprehensive array of resources including: planning
grants, training programs, tax credits, and direct financial assistance.
E&I, with the WEDC policy staff, will benchmark best practices for state-sponsored early
stage capital investment and present options for structure and deployment in Wisconsin.
Resources
1. Budget
E&I is supported by a $1.3 million Operating Budget, including $700,000 in partner
investments, and a Program Budget of $6 million in SSBCI (Federal) funding, and
$5.3 million from WEDC, for a total of $11.3 million. The Division is awaiting
legislative action on the Wisconsin Competiveness Fund.
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WEDC
CREATING A PLAN FOR
WISCONSIN’S ECONOMIC
PROSPERITY
2. Staffing
E&I shall be composed of the divisional Vice President (1), the Technology
Investment Managers (2), Capital Development Director (1) and Entrepreneurship
Services Manager (1).
The Vice President of E&I is responsible for the overall management and direction of
staff, budget, communications strategy, investor relations and other resources.
The Technology Investment Manager is responsible for the design, negotiation, and
implementation of early-stage economic development and financing programs. These
managers will participate in program and project development, public outreach,
dissemination of program information, and account management for all active
entrepreneur investments in the WEDC portfolio.
The Capital Development Director will design and develop investment capital funding
for early stage companies. Additional staff will be hired if a significant investment
capital bill passes this year.
The Entrepreneurship Services Manager is responsible for the extended
entrepreneurial network of managing key partnerships, funding and supporting other
functions of the Division.
3. Partners
The division contracts with the Wisconsin Technology Council, Wisconsin Angel
Network, Wisconsin Entrepreneur Network and Small Business Development Centers.
Partners such as WARF, WiSys, BizStarts, Bioforward, University Office of Corporate
Relations, and local/regional economic development entities, etc. will be leveraged to
support the mission and strategic objectives of this Division.
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WEDC
CREATING A PLAN FOR
WISCONSIN’S ECONOMIC
PROSPERITY
Customer Performance Goals
Milestone
Businesses/Entrepren
eurs engaged by
WEDC E&I staff
Businesses/Entrepren
eurs receiving
financial assistance
from E&I staff and
anticipating job
creation
Q1
Q2
Q3
Q4
37
38
37
38
10
15
15
15
E&I Development Milestones
Milestone
Q1
Q2
Q3
Q4
Facilitate the development of
early to expansion stage
investment capital
Development of
Competitiveness
Fund proposal
Establish funding
criteria and make
initial investments
Launch the SSBCI with WHEDA
Awarded
Continue
investment
activities
Continue
investment
activities
Increase awareness of
entrepreneur support services
statewide
Participate in Early
Stage Symposium
conference
planning and
participate in the
Bioforward Vision
Summit & WiSys
Conference
Obtain legislative
approval by yearend
Finalize program
parameters with
WHEDA
Actively support
Early Stage
Symposium
Participate in the
complete overhaul
of the WEDC Web
site
6
Begin statewide
E&I marketing
activities
Governor’s
Business Plan
Attend
Entrepreneurs
Conference and
Bio Conference
Begin planning for
BIO 2012
Begin statewide
E&I marketing
activities to
promote additional
angel investments
Support education, training and
marketing of angel investment
in the state
Evaluate and implement best
practices to adjust financing
terms in conjunction to business
needs
Begin program
implementation
Preliminary
analysis of
financing
structures and
parameters
Finalize the
development of
financing terms
and analyze the
administrative
impact of these
initiatives
Implement funding
structures
WEDC
Continue
implementation
CREATING A PLAN FOR
WISCONSIN’S ECONOMIC
PROSPERITY
DIVISION OF ECONOMIC AND COMMUNITY DEVELOPMENT
Division Mission
To provide Wisconsin businesses a competitive advantage by enabling a world-class, high
performing state economic development network and investing in high quality job creation
expansion and attraction opportunities
Division Goals
1. Support 470 Wisconsin Businesses through direct financial assistance
2. Incent 21,000 jobs through direct financial assistance to businesses (16,000 FY11)
3. Support 125 Wisconsin communities through financial or technical assistance
4. Active management and support of 460 businesses, 135 communities and 130
economic development organizations
5. Advance alignment of the state’s economic development network by:
a. Deploying LocateInWI to 150 communities with over 11,000 properties
included
b. Deploying Salesforce as a CRM tool with 25 partners
c. Developing and deploy Business Retention and Expansion (BRE) tool for use
statewide
6. Develop regional revolving loan funds (RLFs) in two regions
Operations Plan
The Economic and Community Development Division (ECD) achieves its goals by making
investments in companies that are expanding operations in Wisconsin and by partnering with
municipal, county, and regional economic development organizations to provide incentives
for business expansion and community economic development.
ECD will invest in workforce development and project based opportunities via a consistent
and transparent methodology while utilizing the available resources in a flexible manner so
as to be responsive to the ever changing needs of our business clients. Specifically, ECD will
invest in companies that retain or create family-supporting jobs in the state of Wisconsin.
We will utilize the job creation and retention tier system established for the Economic
Development Tax Credits, as follows, so as to invest in high quality, full time jobs.
•
•
•
Tier 1; Wage Range: $10.88 - $14.50; investment up to $3,000 per job
Tier 2; Wage Range: $14.51 - $18.13; investment up to $5,000 per job
Tier 3; Wage Range: $18.14 and up; investment up to $7,000 per job
The investment will be enhanced if a corporate headquarters opportunity following guidelines
established by the Economic Development Tax Credit program.
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CREATING A PLAN FOR
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PROSPERITY
Additional investment criteria will include business competitiveness, a minimum private
sector investment ratio of 2:1, sector growth, and economic impact. Other factors to
consider will be whether the business is in WEDC’s targeted industries as well as is located in
a community that fosters business growth and supports the project.
WEDC will also invest in workforce enhancements and improved skill sets. We expect to
invest in 470 companies and estimate that these investments will support the creation or
retention of 21,000 jobs.
ECD will continue to invest in brownfield and redevelopment opportunities as well as to
support communities through investments in public facilities and infrastructure. Investments
will emphasize community-wide impacts, regional collaboration, business development, and
downtown development. The Division will continue to support and expand the Main Street
Program as a component of our downtown development efforts by developing a tier system
for delivery of service. We expect to invest in 135 communities.
ECD will invest in the building of a strong state economic development network by
supporting infrastructure, training, and professional development. The Division will commit
staff and resources to support statewide platforms for business relationship management,
site location, economic impact measurement, and customer activity tracking.
ECD supports the alignment of the economic development network and the creation of high
quality jobs through allocation of internal staff resources, engagement of partners
organizations, and/or applying budgeted WEDC funds, federal funds, tax credits, and bond
allocations. We will also leverage the local and regional revolving loan funds to support the
efforts.
Resources
1. Budget
EC&D is supported by an Operating Budget of $3.1 million, including $700,000 in
partner investments. The Program Budget consists of the following:
Community Investments - $18,000,000
Cash Sources
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Cash Uses
WEDC
CREATING A PLAN FOR
WISCONSIN’S ECONOMIC
PROSPERITY
Business Investments - $100,292,000
Cash Sources
Cash Uses
* RLFs managed by regional or community entities
Note: Non-cash investments such as non-refundable tax credits and bond volume cap account for an
additional $333,632,000 available for business development.
2. Staffing
ECD is composed of the divisional Vice President (1), the Regional Account Managers
(8), Community Account Managers and Downtown Development (8), Tech
Support/Trainers (3), and an Administrative Assistant (1).
The Vice President of ECD is responsible for the overall management and direction of
staff, budget and other resources. The VP will also provide the leadership and
support outreach efforts in establishing the world-class network and provide project
support when needed.
The Regional Account Managers are responsible for the extended economic
development enterprise performance by providing training, guidance and assistance
to economic development organizations; facilitate coordination of WEDC, WEDC
partners, state, and regional resources in each region; work with local economic
development organizations to package incentives and support for business expansion
and attraction projects; manage and support a set of economic development and
business ‘accounts’ in a designated region; and lead the development and
implementation of tools to advance regional economic development goals.
The Community Account Managers and Downtown Development staff work with local
economic development networks in negotiating and developing project funding; work
with clients to maximize leveraged investments for WEDC supported projects;
administer the Community Development Block Grant program; and oversee
infrastructure project management.
The Downtown Development staff will provide support to communities in commercial
business development; promote programs for business growth and opportunity; help
communities develop tools; serve as a clearinghouse for business, organization, and
municipality business development related information and resources; and act as
community account managers.
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WEDC
CREATING A PLAN FOR
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PROSPERITY
The Economic Development Trainers will provide support and resources for users
through development of tools to better support the extended enterprise as well as
facilitate training for effective use of resources.
3. Key Partners
The network of partners in which the division will be actively engaged will include the
Wisconsin Economic Development Association (WEDA), Regional and Local Economic
Development Organizations, Regional Plan Commissions, County and Municipal
Governments, Main Street programs, Workforce Investment Boards and the Regional
Revolving Loan Funds all of which will support the business we serve.
Customer Performance Goals
Metric
Businesses receiving financial
assistance from ECD or RLF
funds
Businesses under active
management by ECD
Businesses receiving technical
assistance from ECD staff
Communities receiving
financial assistance from ECD
Communities under active
management by ECD
Communities receiving technical
assistance from ECD staff
Q1
Q2
Q3
Q4
60
100
135
175
350
400
440
460
0
50
75
140
10
20
35
60
65
65
100
135
35
50
75
140
Accelerate Wisconsin Network Milestones
Milestone
Q1
Q2
Q3
Deploy ‘LocateInWI’ for
statewide use
Transition from
WEDA
Integrate into
WEDC site
Property listing to
over 11,000
Deploy Salesforce
as an integrated
CRM tool
Pilot project with
partners
established
Two regional
EDO's implement
Two regional
EDO's and 5
additional partners
150 passwords
and Brownfield
layer created
10 additional
partners and 2
regional EDO's
Deploy BRE tool for statewide
use
Survey and
analyze existing
programs
Partner with
existing BRE users
to select and
finalize
Integrate selected
tool into existing
programs
Statewide
deployment of BRE
tool
Regional RLF Deployment
Evaluate existing
regional programs
Two regions begin
establishing a
regional RLF
One regional RLF
launched
Second regional
RLF launched.
Plans of action
established in all
regions
Establish a Downtown
Development Program
Reorganize
Community
Development
team. Execute all
Main Street
contracts
Develop a tier
system for service
delivery
Ten communities
served in the tier
system
Ten additional
communities
added to tier
system
10
WEDC
Q4
CREATING A PLAN FOR
WISCONSIN’S ECONOMIC
PROSPERITY
DIVISION OF BUSINESS AND INDUSTRY DEVELOPMENT
Division Mission
To develop high quality jobs and significant job growth in Wisconsin by advancing targeted,
high growth business consortia and industry sectors.
Division Goals
1. Engage 25 distinct, targeted-industry sector development opportunities through
criteria-based assessment for high, sustainable economic impact
2. Advance 7 high value industry-led sector opportunities as key priorities
3. Assist 200 unique Wisconsin businesses through targeted industry support
4. Achieve at minimum an overall 3:1 investment leverage ratio
5. Advance DWD – WEDC alignment
a. Coordinate service delivery and messaging
b. One-stop shop for business assistance
c. Shared data and metrics
Operations Plan
The Business and Industry (B&I) Division achieves its goals by allocating staff to target
industry sectors and making leveraged investments in the advancement of these sectors.
B&I will partner with the industry-led consortia of these target industry sectors.
Initiatives supported by B&I must have active industry consortia leadership, private sector
investment, defined charters, and strategic and operations plans with targeted timelines for
achievement of goals.
Twenty-five specific industry sectors and clusters will be assigned to each of the six Business
and Industry Development Managers to drive identified outcomes, and facilitate the build-out
of sector clusters through leveraged WEDC investment and partner expansion.
At least seven high potential targeted sectors will be chartered. The program budget will be
allocated to each sector according to specific investment criteria. The standard protocols and
processes that will be applied, to support the investment of up to $10 million in B&I
matching assistance to the seven key sector cluster targets, are in final development.
B & I, with the executive office, will take the lead on the project to align workforce and
economic development in the state of Wisconsin. This long-term strategic initiative will
identify and implement collaborative opportunities in areas of marketing, service map of
alignment, policy, and measurement.
The division is also responsible for acting on short duration opportunities that have
substantial impact and require the mobilization of resources (e.g. response to large federal
grant, public/private collaborative project, or significant business recruitment opportunity).
Such actions will be coordinated closely with an inter-agency task force to optimize available
agency capabilities and resources.
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One B & I Development Manager is focused on advancement of Minority Business
Development in Wisconsin. The primary focus is to increase the amount of capital available
for minority small business development and entrepreneurship. Our target is to establish
RLFs for the minority community.
B&I also houses WEDC’s industry research staff which supports research needs throughout
the corporation. This team of specialists will monitor, measure and report on key
macroeconomic benchmarks of the state’s overall economic health. Some of this research
will be regular and recurring. Some will be targeted at assessing urgent action, where
identified, for specific economic sectors, industries or regions.
Resources
1. Budget
B&I is supported by an operating budget of $2.8 million, including $1.2 million in
partner investments, and a Program Budget of $10 million to support co-investment
in the industry-led cluster and consortia development activities of the division.
2. Staffing
B&I is composed of the divisional Vice President (1), the Business and Industry
Development Managers (8) and Research Analysts (2)
The Vice President of B&I is responsible for the overall management and direction of
staff, budget and other resources.
Business and Industry Development Managers develop, manage and monitor up to 25
discrete business cluster and consortia “channels”, with related specific assignments
and ownership of these individual market segments. One B & I Development Manager
will be dedicated to minority development.
The Research Analysts support the necessary ongoing and on-demand market and
economic research needed to inform key directional decisions, program budget coinvestment decisions and recurring macroeconomic/microeconomic research at the
direction of WEDC’s Executive Office.
3. Key Partners
The network of partners in which the division will be actively engaged will expand
over time to reflect the dynamic marketplace in which it will operate. However, a
select group of permanent Primary Partners will constitute the core of the network.
These Primary Partners include the Wisconsin Manufacturing Extension Partnership,
Northwest Wisconsin Manufacturing Outreach Center, Minority-Focused Business
Revolving Loan Funds, Wisconsin Women’s Business Initiative Corporation,
Department of Workforce Development, Department of Revenue and WHEDA.
The industry-led associations of established targeted industry sectors (e.g. The Water
Council, BioForward, etc.) will be engaged in Q1-Q2 to define sector development
opportunities for WEDC. These opportunities will be scored and stratified to assure
those that are most promising with greatest potential for positive economic impact
are assigned priority program and project status. Associations and consortia that are
less established and emerging will be evaluated on common criteria and prioritized
along the same lines.
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WEDC
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PROSPERITY
Industry Sector Development Milestones
Milestone
Q1
Businesses Impacted by target
sector advancement
Target Sectors staffed and
supported
Four priority
sectors piloted
High value charters &
investments advanced through
B&I
Put in place and execute a
research plan and capability for
WEDC
Q3
Q4
50
75
75
11 priority sectors
staffed and
supported
18 priority sectors
staffed and
supported
25 priority sectors
staffed and
supported
2 sector
opportunities
charted and
invested
Hire 2 Research
analysts
3 sector
opportunities
charted and
invested
2 sector
opportunities
charted and
invested
Craft quarterly
research plan for
Analyst team
Develop
engagement plan
for identified MBEs
Minority business development
Capitalize
2 minority RLFs
13
Q2
Plan development
Plan deployment
Capitalize or
expand
2 minority RLFs
Capitalize or
expand 1 minority
RLF
WEDC
Capitalize or
expand 1 minority
RLF
CREATING A PLAN FOR
WISCONSIN’S ECONOMIC
PROSPERITY
DIVISION OF INTERNATIONAL BUSINESS DEVELOPMENT
Division Mission
To accelerate the growth of Wisconsin’s economy through increased exports and foreign
direct investments by expanding markets, enhancing export assistance partnerships and
promoting Wisconsin.
Division Goals
1. Deliver direct and partner assisted Export Consultations to 150 Wisconsin businesses
2. Deliver Market Entry services to 150 Wisconsin businesses
3. Deliver Market Development services to 75 Wisconsin businesses
4. Identify 15 Foreign Direct Investment Prospects
5. Create a comprehensive 2 year business plan for international business development
Operations Plan
The International Business Development Division (IBD) achieves its goals by providing
technical assistance and services focused in three critical export development areas: export
education, market entry and market development. Programs will focus on industry sectors
poised for Foreign Direct Investment (FDI) and will include a marketing strategy and material
to promote the advantages of Wisconsin’s business climate.
The state of Wisconsin can benefit from a coordinated international development strategy.
IBD leadership will work with the Governor’s Office and relevant state agencies and partners
to develop a two-year plan for market entry, industry promotion, trade missions, and foreign
direct investment promotion.
IBD will expand the number of businesses provided export assistance by staff and key
partners. IBD will focus its efforts on opening markets and establishing partnerships with
local, federal, and regional resources to expand export assistance capabilities throughout the
state. Trade mission grants will be expanded to support Wisconsin firms entering foreign
markets. The Exportech program will be expanded to advance 30 companies in FY12.
A FDI manager will be hired to forge new investor relationships and to serve as a client
manager for investors actively pursuing Wisconsin.
Wisconsin Foreign Office Directors and/or Representatives will provide market entry and
development services to Wisconsin businesses; and provide WEDC and its customers regular
market intelligence on country specific import regulations, opportunities and advice on
market access and regulatory issues. Offices will also prospect FDI opportunities and
fostering long-term relationships with key investor clients.
IBD will identify advisors from private industry, university, economic development entities,
industry associations and government agencies to provide guidance on increasing the
competitive climate for Wisconsin exports.
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PROSPERITY
Resources
1. Budget
IBD is supported by an Operating Budget of $1.1 million, including $450,000 in
Foreign trade office investments, and a Program Budget of $285,000 to support all
international business development program services delivery.
2. Staffing
IBD will be composed of the divisional Vice President (1), Market Development
Directors (4), Foreign Direct Investment Manager (1), Export Assistance Manager (1)
and the Events and Trade Mission Coordinator(1).
The Vice President of IBD will be responsible for the overall direction and
management of the Division and will assure execution of the Divisional Operating
Plan.
Market Development Directors will be responsible for the strategy and execution of
export development activities in their defined geographic regions.
The Foreign Direct Investment Manager will be responsible for developing a marketing
strategy and material to attract foreign direct investment to Wisconsin. The FDI
manager will forge new investor relationships and serve as a client manager for
investors actively pursuing Wisconsin.
The Export Assistance Manager will provide technical consultations to Wisconsin
businesses on the export process and related export compliance issues. The position
will develop and manage services for new-to-export companies and field export
related requests from businesses.
The Events and Mission Coordinator will plan, prepare and execute all special events
and foreign trade missions executed by the International Business Development
Division including Governor and WEDC led trade missions.
Wisconsin foreign offices and/or representatives will have detailed knowledge of
country specific import rules and regulations as well as contacts with key importers,
distributors, end-users and government officials. Offices will provide WEDC and
customers regular market intelligence on opportunities and advice on trade policy,
market access and regulatory issues that may impact the state’s exports to their
respective market. Offices will also be responsible for FDI prospecting and fostering
long-term relationships with key investor clients.
3. Key Partners
Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP),
Office of the Governor, University of Wisconsin, State Trade Associations, U.S.
Department of Commerce, U.S. Department of Agriculture, Wisconsin Technology
Council, Wisconsin Manufacturing Extension Partnership (WMEP), Northwest
Wisconsin Manufacturing Outreach Center (NWMOC) and regional economic
development entities.
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WEDC
CREATING A PLAN FOR
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PROSPERITY
Customer Performance Goals
Metric
Q1
Businesses engaged by IBD staff
and partners
Businesses receiving substantive
financial assistance from IBD
staff or partners
Businesses receiving substantive
technical assistance from IBD
staff or partners
Q2
Q3
Q4
100
100
200
200
-
-
-
42
45
70
70
45
State International Business Development Milestones
Metric/Milestone
Q1
Q2
Q3
Q4
Development of a business plan
Collect and
analyze export
data
Identify
collaborators.
Define targets and
components of
plan
Develop strategy
and tactics
specified by target
market
Roll out plan
Export assistance enhancement
-
Hire staff.
Analysis & conduct
needs assessment
Identify core
services and
create marketing
material
Foreign Direct Investment
program development
-
Hire manager
Identification of
incentive &
competitive
advantages
Align
representation
with target
markets & needs
Foreign office expansion or
improvement
-
-
Trade missions executed
-
Trade mission
coordinator hired
Creation of global network
16
-
Identify advisors
Creation of
standard technical
documents/templa
tes
Creation of
marketing
material, FDI
package. Begin
prospecting
Draft new
contracts & send
out RFQ
India Trade
Mission
Confirm advisors,
structure and
purpose of
network
WEDC
Conduct first
meeting
CREATING A PLAN FOR
WISCONSIN’S ECONOMIC
PROSPERITY
DIVISION OF MARKETING AND PUBLIC AFFAIRS
Division Mission
To advance job growth by promoting Wisconsin businesses and business climate, and by
advancing policies to create a business growth climate.
Division Goals
1. Launch an integrated marketing campaign that brands Wisconsin as a pro-jobs, probusiness state.
2. Develop an annual policy package to advance Wisconsin business and job growth
3. Receive input from 500 businesses on barriers to, or opportunities for, business
growth
Operations Plan
The Marketing and Public Affairs Division achieves its goals by operating a multi-million dollar
marketing program and by staffing a government relations team to benchmark and advance
business and job-growth policies. The division raises matching dollars to support the
marketing efforts and contracts with a marketing agency to execute the branding campaign.
The division will be hiring a Vice President, raising matching private capital, selecting a
marketing agency to rebrand the state of Wisconsin. The marketing team will immediately
develop and deploy a statewide marketing campaign to be launched in Spring 2012.
Communications staff will support the work of marketing and branding, for both Wisconsin
and the WEDC.
In addition, the division will engage the business community – through a series of focus
groups and one-on-one consultations - to identify policy barriers or opportunities affecting
Wisconsin’s job growth performance. This input occurs through a series of focus groups,
input at WEDC sponsored conferences, and individual meetings. Nationwide surveys and
ratings of state business rankings will be researched to identify opportunities to advance.
The government relations team is researching best practice policy initiatives that can be
applied to Wisconsin. Staff will produce a summary of best practices and work with the
Governor’s office and legislature to adapt best practices for Wisconsin.
Resources
1. Budget
The Division of Marketing and Public Affairs is supported by an Operating Budget of
$2.923 million, with $1.5 million allocated for a marketing and branding campaign,
expected to leverage a private sector dollar match exceeding 2:1.
2. Staffing
The Division of Marketing and Public Affairs shall be composed of the divisional Vice
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President (1), the Government Relations team (4), Communication Manager and
Specialist (2) a Marketing Specialist (1) and an Events Coordinator (1).
The Vice President of Marketing and Public Affairs shall be responsible for the overall
management and direction of staff, budget and other resources.
The Government Relations team is responsible for state and federal government
relations and liaison activities, and for conducting research that offers
recommendations on policy proposals identified internally, introduced by policymakers
and advocated by other stakeholders.
The Communications team directs and support messaging efforts both internally and
externally to a variety of stakeholders, including the business community, the
statewide extended enterprise of economic development entities, policymakers,
statewide and national media, and Wisconsin citizens.
The Marketing team is responsible for efforts that support the branding both of
Wisconsin as a pro-business state in coordination with contracted marketing
consultants, and of WEDC initiatives that support the business community. Forward
Wisconsin brand and organization will be replaced by WEDC marketing.
3. Key Partners
Key partners in advancing the division’s mission primarily include a marketing
contractor that will drive the branding effort for the state’s business climate.
Additionally, private partnerships will be pursued and engaged to provide financial
support for the marketing campaign on an ongoing basis. Forward Wisconsin will
provide support in transitioning its previous functions and resources to the marketing
team.
Key Milestones (KPIs) and Timeline
Milestone
Q1
Q2
Q3
Q4
Number of
businesses engaged
through outreach
100
200
100
100
Hire VP
Hire Marketing
Agency
Sign Contracts with
Forward WI/
Competitive WI
Benchmarking of
other state best
practices
WEDC logo and
branding changed
Marketing program
milestones
WCF proposal
developed
Policy Development
Milestones
WEDC
Communication and
Branding
18
Hire policy analyst
Develop policy
package for end of
2011-12 session
Launch marketing
and branding
Support
advancement of
spring agenda
Develop strategy for
grant opportunities
Develop
communications plan
Develop federal
relationships
Launch quarterly
state of WI economy
Develop messaging
Launch web “sitelet”
Develop business &
assn survey
Conduct media
relations on policy
plan
WEDC
Develop budget and
policy package for
2013-14
Develop federal
agenda
Launch social media
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DIVISION OF FINANCE AND ADMINISTRATION
Division Mission
To elevate the Wisconsin economy by providing WEDC and it economic development partners
the tools, technology and support necessary to meet strategic goals and operational
advantage
Division Goals
1. Put in place monthly performance and financial dashboards
2. Deploy Salesforce.com for all customer activity tracking
3. Develop and implement HR system systems, including performance and professional
development plans and employee engagement survey
4. Establish baselines and systems for productivity gains
Operations Plan
The Division of Finance and Administration (F&A) achieves its goals by enabling most
enterprise functions of the WEDC and its seven operating divisions. Its purpose is to furnish
the needed human resources and associated key competencies, the financial resource
management to deliver operations funding and good stewardship of financial resources and
financial accountability, the technology to fuel operations effectiveness, monitoring and
reporting (as well as key partner integration) and the process improvements needed to
propel progress toward objectives through discipline in standard practices and operating
procedures.
Resources
1. Budget
F&A is supported by an Operating Budget of $3.3 million to support ongoing
operations.
2. Staffing
F&A shall be composed of the Chief Financial Officer (1), the CFO Administrative
Assistant (1), Human Resource Team (2), the Controller’s Office (6), IT Team (4),
Customer Service Team (3), Process Improvement Team (4) and Underwriting Team
(10).
The CFO will be responsible for the execution of the operations plan, overall
management of the division and direction of staff, budget and other resources.
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The Human Resources Team provides support for the advancement and training of
staff. Additionally the team administers recruitment, compensation and benefits.
The Controller’s Office is responsible for all accounting operational functions and
exercises fiduciary responsibility over corporate funds.
The Process Improvement Team is responsible for measuring, evaluating and
improving WEDC processes as well as ensuring compliance with all applicable State
and Federal laws and regulations.
The Information Technology (IT) Team provides technology services for the
organization. These services typically involve any combination of applications
development, systems analysis, IT infrastructure, systems integration, and related
technical support areas.
The Customer Service Team provides customer managements, and provides
information to customers about WEDC and partner products and services. The team
also resolves or refers customer complaints and handles phone and internet inquiries.
The Financial Underwriting Team is responsible for evaluating projects submitted to
WEDC and developing financial incentive packages that support Wisconsin
communities, and encourage businesses to start-up, relocate, expand, or develop new
facilities in Wisconsin.
3. Key Partners
Primary partners will include the UW System, Legislative Audit Bureau, Department
of Administration, and the Wisconsin State Legislature and all relevant committees.
Executive Office
The Executive Office provides leadership, strategic direction, board support, organizational
planning and legal services for the WEDC. In addition, the Executive Office budget supports
the sponsorship and support of key state of Wisconsin economic development initiatives.
The Executive Office consists of the CEO, COO, Chief Legal Counsel, administration support
staff, and limited term employees as needed to support key initiatives.
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Key Milestones (KPIs) and Timeline
Milestone
Human Resource
Development
Q1
Q2
Q3
Q4
Job descriptions
complete
Personnel and
Compensation
policies approved
Performance
expectations set for
all staff
Employee
engagement survey
developed
Year end
performance
evaluations and FY13
expectations
Transition of 300
positions
60% staffing
Staffing
Customer and
performance tracking
systems
80% staffing
Salesforce launched
as replacement CRM
Close out of
Commerce financials
Financial Systems
Measurement and
Evaluation
Launch of new
private based
accounting systems
Close out of
Commerce
performance
Customer Service
Technology and
Infrastructure
Review and
recommend changes
to phone and
computer systems;
transition from state
systems to WEDC
Review space and
facility requirements
21
Full Staffing
Senior Staffing
complete
All staff trained and
customer activity
entered; turn off
Pearl system
Routine use of
Salesforce
throughout WEDC
Public visibility to
select customer
activity
Integration with
partner tracking
System generated
financial statements
produced within 10
days of month end
Loan Management
system fully
functional
Measurement and
evaluation protocol
for all financial
awards
Measurement and
evaluation protocol in
place for all WEDC
business assistance
activities; partner
reporting in
consistent WEDC
format
Customer service 1800 number and
website access
provided for WI
businesses; customer
service staffing in
place
Integration of
customer service with
marketing Wisconsin
Track and set targets
for FY13 productivity
gains
Year-end reports
completed on WEDC
performance
Customer service
reporting
Replace phone
systems with
integrated data and
voice support
Launch space and
facility branding
changes
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WEDC FINANCIAL SUMMARY
Initial Capitalization
The Corporation was initially capitalized with the transfer of remaining Commerce balances.
This transfer of approximately $17.4 million was deposited to the WEDC bank account at US
Bank in August of 2011. An additional $2 million is anticipated after audited close-out.
This transfer was approved to support initial start-up capital, pay for transition costs, and
provide a base for ongoing WEDC operations.
In addition, the assets (primarily loan and grant receivables, equipment and furniture) and
liabilities (remaining loan disbursements, leases) associated with the Department of
Commerce transferred to the Corporation on July 1, 2011.
The Corporation has targeted holding cash reserves of six months or more of operating
expenses and begins the fiscal year meeting that target.
Revenue Sources
Corporation revenues for the 2012 fiscal year (July 1, 2011 – June 30, 2012) are estimated
at $88.4 million supplemented with $9.2 million provided by WEDC from the initial transfer of
funds from Commerce. Principal sources and amounts are:
•
State of Wisconsin General Purpose Revenue (GPR) – The state of Wisconsin taxpayers
will provide the Corporation $34.1 million in FY12 and $32 million in FY13.
•
State of Wisconsin transferred balances – WEDC will allocate $9.2 million of the
transferred FY11 Commerce balances toward FY12 aids and operations.
•
Recycling Fund - $23.2 million will be transferred to the Corporation in FY12 from
recycling surcharges levied on landfill operators.
•
Federal Community Development Block Grant (CDBG) Funds – The Corporation
assumes the responsibility for managing the Community Infrastructure and Economic
Development portions of the CDBG program. Approximately $17 million of federal
funds will be allocated to Wisconsin this year and managed by the Corporation.
Additionally, the Corporation anticipates drawing $7 million from past year
authorizations to support low-to-moderate income and rural projects.
•
Brownfields - This special purpose source of revenue supports Brownfields
redevelopment. $1 million is provided annually to the Corporation from this source.
•
Loan Repayments – The Wisconsin Department of Commerce has provided loans
directly to businesses and indirectly through loans administered by revolving loan
funds throughout the state. Current outstanding loan value is approximately $41
million. Repayments from those loans are estimated to be $5.4million and treated as
revenue in FY12.
•
Administrative fees – The Corporation collects miscellaneous fees for services such as
CDBG management and loan servicing fees.
Total fees are estimated at $700,000 in
FY12.
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Expenses
Corporation expenses for the fiscal year are estimated at $97.6 million.
expenditures are:
Principal
•
Aids to Businesses and Communities – The Corporation will provide approximately $82
million to invest in companies or communities in Wisconsin for the purpose of
expanding business and family supporting jobs.
Principle aids distributions include:
•
Loans for business expansion in Wisconsin –$48.4 million will be distributed
•
Loans or grants for community development or brownfield redevelopment - $18 million
•
Loans for early-stage or start-up business - $5.3 million
•
Grants or loans to advance target industry or high value opportunities - $10 million.
•
Trade Advancement grants - $285,000
•
Operating Expenses – The Corporation will expend $15.6 million to support delivery of
assistance services to businesses as well as general operations.
o Salaries and Compensation - $8.7 million to support the salaries and
benefits for an estimated 94 employees of the Corporation.
o Contracted Services with partners - $3.2 million for contracted services with
organizations that deliver services aligned with the WEDC mission and
metrics.
o Other operating expenses – $3.7 million for travel, supplies, lease, and
other expenses necessary to support WEDC operations. Includes $1.5
million as the Corporation matching portion of a state business marketing
program.
Statement Notes
Potential revenue sources not budgeted include management of a $6 million portion of a
federal grant awarded to the Wisconsin Housing and Economic Development Authority
(WHEDA) and managed by the corporation, private contributions and co-investment, or
fees for Corporation services.
Transition expenses for remodeling, equipment upgrades, personnel costs associated with
the buyout of accumulated sick leave and vacation amounts, start-up systems (financial HR,
CRM, etc.) are treated separately. These are estimated at $2 million.
Operating expenses for FY12 reflect a ramp-up time to full-staffing by the 3rd quarter of the
fiscal year. Staffing expenses are estimated at 60% in quarter 1 and 80% in quarter 2.
Annualized operating expenses at full staffing levels are estimated to be approximately $17
million.
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WEDC Budget Funding Sources
($97,623,900)
WEDC
WEDCBudget
BudgetUses
UsesAllocation
Allocation
($89,923,900)
($97,623,900)
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WEDC Cash Investments
($82,000,000)
Operating Budget by Division
($15,623,900)
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72 Employees
75% Staffing
WEDC Organization Chart
October 10, 2011
Last Modified 10/10/2011
Executive Office
CEO
Paul Jadin
(6)
Assistant to CEO
Helen Stewart
Molly Delaney
Kathie Colbert
COO
Mike Klonsinski
(6)
Strategic Projects &
Policy Advisor
Amy Young
Legal Services
Chief Legal Counsel
Hannah Renfro
(1)
Entrepreneurship &
Innovation
VP Entrepreneurship &
Innovation
Lisa Johnson
(5)
Economic &
Community
Development
VP Economic &
Community Development
Brenda Hicks-Sorensen
(20)
Business & Industry
Development
VP Business & Industry
Development
Marketing & Public
Affairs
VP Marketing & Public
Affairs
International
Development
VP International
Development
Lee Sw indall
(11)
(Vacant)
(9)
Lora Klenke
(7)
Finance &
Administration
CFO
Eric Schroeder
(30)
Admin Assistant
Steve Michels (LTE)
Early Stage
Investment
(Vacant)
Aaron Hagar
Chris Schiffner
Innovation Services
Manager, (Vacant)
Regional Development
Venture Capital
Authority
Tim Cooley (LTE)
Venture Capital (Vacant)
Business & Industry
Development
Governmental
Relations
Kathy Heady
Danielle Jones (LTE)
Shelly Harkins
Gail MacAskill
Cate Rahmlow
Luke Fuszard
Dave Volz, Director
Tarna Gahan-Hunter
Rebecca Deschane
James O'Keefe
Dagmar Beckel
Deb Clements
Frank Frassetto
David Martens
Mary Perry
Mary Gage
RAM SE (Vacant)
RAM NE (Vacant)
Geri Peterson
Tool Support /Research
(Vacant)
Financial Resource Manager
(Vacant)
B&I Development Manager,
(Vacant)
B&I Development Manager,
(Vacant)
Community
Development
Research
Jason Scott
Doug Thurlow
Patrick Sheahan (LTE)
Community Accts Manager,
(Vacant)
Community Accts Manager,
(Vacant)
Jim Engle, Manager
Catherine Dunlap
Joe Lawniczak
JD Milburn
Minority Business
Development
Manager (Vacant)
Seyoum Mengesha
Market Development
Director Europe, Brad
Schneider
Human Resources
Market Development
Director Latin America,
(Vacant)
Controller's Office
Communications
Tom Thieding, Manager
Shauna Breneman
Marketing
Marketing Specialist,
(Vacant)
Events Coordinator
(Vacant)
Market Development
Director,
Stas Pfrang
Lyra Trapp, Manager
Amber Kelsey
Audrey Chase (LTE)Controller
Vacant
Denise Jackson
Bill Ittner
Sue Koberle
Kathy Rabe
Foreign Director Investment
Manager, (Vacant)
Events Coordinator,
(Vacant)
(Vacant)
(Vacant)
Carmi Pietila-Cleary
International Trade
Market Development
Director Asia, Beng Yeap
Export Development
Manager, (Vacant)
IT
Greg Beach, Director
Ryan Baker
Andrew Schmiechen
Sue Yaroch
Process Improvement
and Compliance
Pete Norman, Manager
Josh Fazzan
Process Improvement,
(Vacant)
Compliance, (Vacant)
Customer Service
Manager (Vacant)
Peggy Burke
Customer Service Rep
(Vacant)
Financial Underwriting
WEN/SBDC
WTC
WAN
26
Regionals
WEDA
RPCs
WEDC
MEP
(WMEP, NWMOC)
WWBIC
Minority RLFs
Marketing Contrac tor
Foreign Offic es
China
Mexic o
Brazil
Canada
Steve Sabatke, Manager
Jim Bren
Sandy Herfel
Todd Jensen
Al Rabin
John Roos
Early Stage Underwriter,
(Vacant)
Patti Holden (Project)
Christine McFadzen(Project)
Underw riter, (Vacant)
Underwriter (Vacant)
CREATING A PLAN FOR
WISCONSIN’S ECONOMIC
PROSPERITY