Economic Development Agencies (EDAs) and Teams play a crucial role in fostering sustainable growth and improving quality of life. But what separates the truly impactful agencies and teams from the rest?
Drawing on my Ph.D. research into what makes these organisations tick, I’ve identified seven core habits that define highly effective EDAs.
By cultivating these seven habits, Economic Development Agencies can become highly effective, impactful forces for positive economic change in their communities.
Habit 1: Master Your Internal Game
Highly effective Economic Development Agencies and Teams understand that success starts from within. They don’t just focus on the programs they deliver; they obsess over their organisational design, how they craft interventions, and their internal institutional interfaces. This means having clear processes, efficient structures, and a strong internal culture that enables effective delivery. Think of it this way: a well-oiled machine produces the best results.
Case Study Example: An Economic Development Team in a rapidly growing tech hub redesigned its internal project management system. By implementing agile methodologies and cross-departmental teams for specific industry clusters, they significantly reduced project delivery times and improved internal communication, leading to more efficient resource allocation for their business support programs and tech incubator initiatives.
Habit 2: Performance Rooted in People and Process
It’s not just about what you do, but how you do it. The most effective Economic Development Agencies and Teams know that their performance isn’t solely defined by a successful grant program or project. Instead, their impact is deeply rooted in their organisational characteristics and processes. This includes everything from how programs are designed and implemented to how they are continuously improved or even retired. An effective organisation, with the right people and processes, is the bedrock of consistent high performance.
Case Study Example: A long-standing Economic Development Agency, initially focused on simply delivering grants, shifted its emphasis to how it designed and implemented its programs. They introduced a rigorous “program lifecycle” process, including market testing and continuous feedback loops with clients, which led to a 30% increase in the success rate of their workforce development programs, as these programs were now better aligned with actual employer needs.
Habit 3: Embrace the External Ecosystem
Economic Development Agencies and Teams don’t operate in a vacuum. The best ones are acutely aware of their complex and ever-changing environment, especially its high political salience. They don’t just react to these external pressures; they recognise and proactively incorporate environmental sensitivities into their operations. This foresight allows them to navigate challenges, leverage opportunities, and build resilience in a dynamic landscape.
Case Study Example: Faced with significant political shifts and fluctuating national funding, a regional Economic Development Agency established a dedicated “horizon scanning” unit. This unit continuously monitored policy changes, economic trends, and community sentiments, allowing the agency to proactively adjust its strategies and communication, thus maintaining strong stakeholder support even during periods of uncertainty.
Habit 4: Adopt an Entrepreneurial Philosophy
Forget outdated, top-down approaches. Leading Economic Development Agencies and Teams are entrepreneurial in their operational philosophy. This means a focus on understanding and responding to client and market demands, maximising local economic opportunities, and consistently striving for sustainable solutions. They work hand-in-glove with the private sector, recognising that economic growth is often about enabling the private-sector; and that the private sector must be incentivised, educated and informed about how to achieve sustainable and inclusive growth.
This is often the reason why “agency” vehicles are chosen for local, regional and city economic development or specific functions such as investment promotion and entrepreneurship – so it is distinct from the public sector or government, that it blends the best aspects of public and private sector values and operations; and is also more relatable for private business.
Case Study Example: A traditional Economic Development Agency that previously offered standardised business support programs transformed into a market-led agency. They conducted in-depth market research to identify specific needs of local SMEs and tailored their services accordingly, resulting in higher engagement from businesses and a measurable increase in local job creation through targeted support. This meant focusing on client and market differentiation, maximising local economic opportunities, and achieving sustainable solutions.
Habit 5: Invest in Your Human Capital
Your people are your most valuable asset. Highly effective Economic Development Agencies and Teams champion this principle by prioritising quality human resources. They actively seek out the best talent with diverse skill sets, from public, private, and non-profit backgrounds. Regularly conducting skills audits ensures they have the right mix of competencies to tackle complex economic development challenges, and they invest in continuous staff development.
Case Study Example: Recognising the evolving demands of economic development, an EDA implemented a comprehensive annual skills audit for all staff. Based on the audit results, they then developed bespoke training programs and recruited new talent with backgrounds in data analytics and digital marketing, ensuring their team had the diverse competencies needed to address modern economic challenges.
Habit 6: Develop Practical, Actionable Strategies
Strategies should be living documents, not dusty binders on a shelf. Effective Economic Development Agencies and Teams formulate strategies that are practical, implementable, and action-oriented. They are grounded in accurate analysis of the local economy and institutional structure, and critically, their policies are not just written but deeply ingrained throughout the entire organisation, ensuring widespread ownership and consistent application.
These strategies might not be the ones you see published on websites! they may be the implicit vision, strategy and delivery plan which Economic Development Agencies and Teams follow. They may also be enshrined in operational philosophies and leadership values.
Case Study Example: An Economic Development Organisation known for producing extensive but often unimplemented strategic plans reformed its approach. They adopted a “strategy-to-action” framework where every strategic objective had clear, measurable actions, assigned responsibilities, and integrated implementation steps from the outset. This ensured that their economic development roadmap, including initiatives for attracting foreign direct investment, was consistently translated into tangible projects.
Habit 7: Cultivate Powerful External Relationships
No Economic Development Agency or Team can go it alone. The most impactful agencies excel at fostering effective external relations, recognising that informal connections are just as vital as formal partnerships. They approach collaborations with clear rationales and objectives, understanding that healthy inter-organisational tensions can even be beneficial. These strong external ties provide invaluable feedback, enhance reputation, and amplify their overall impact.
Case Study Example: An Economic Development Team, operating in a highly fragmented institutional landscape, prioritised building informal and formal partnerships with local businesses, universities, and community organisations. They created a “Partnership Council” with clear objectives for collaboration, leading to successful joint funding bids for infrastructure projects and a more coordinated approach to regional skills development.
