Facilitating change in local and regional communities: an operational viewpoint

Bruce McCollum

Bruce McCollum, & Associates,Goondiwindi

Most people tend to resist change, whether it be political, social or cultural, but where community economic development is concerned, they welcome it!

Our consultations and surveys have consistently shown that people in their local communities have three major concerns:

jobs
quality of life
environment

This came out very strongly during the development of the Central Coast Regional Economic Development Strategy,- which was based on extensive community and focus group workshops, surveys and interviews.

The Vision Of The Central Coast

"The Central Coast, with its outstanding natural beauty and central location between Sydney and Newcastle, will retain, enhance and share its treasured features forever. Sensible, realistic development will be compatible with the environment, jobs will keep pace with population growth and the desire of people to work close to where they live, and a strong and equitable social fabric will provide an enviable quality of life for all. The Central Coast as a " centre of excellence " will combine city advantages with the amenity of open space living in a unique variety of villages, towns and locations, the best of both worlds. "

People in regional, rural and remote areas are not happy with the current situation. They are therefore positively predisposed towards change. They want jobs, for themselves and for young people that are compatible with their lifestyle and environmental aspirations.

The key issue is that very few people know how to go about producing the jobs.

This is our challenge.

The major premise

Development agencies are the facilitators, whereas private sector organisations are the doers. The interaction between them needs to be:

Constructive
Realistic
Mutually beneficial

The key factor is the nature of the interaction between the development agency & the private sector organisation.

The development agency must ensure that its objectives are compatible with the needs of the business
The business must recognise the need for spin-off economic benefits for the community in which they operate.

We are looking for a win-win situation

For the private sector organisation, decisions about a project are made on the basis of questions such as:

Do we really want to do it?
Can we make money from it?
How risky is it?
Are we prepared to put in the extra time & effort?
How much support will we get, & from whom?
Will we be able to find suitable employees?
Where can we get the money from?

From the development agency point of view, the questions are quite different:

How many jobs will it create?
What will be the spin-off benefits for the community?
What can we obtain from Government to help us get started?
Will this help us to retain or increase our funding?
What will the members of the wider community think about this project?

There are four main primary wealth creating and employment generating sectors:

Primary production -agriculture & mining
Value-adding, manufacturing
Tourism
Services traded outside the local area

We should concentrate our activities in these sectors, as the economic benefit from them is much greater than that of the "secondary" sectors such as retail and service industries.

In a perfect market-driven world, purely commercial forces would apply, market opportunities would be identified, and feasible business propositions undertaken. Development agencies would not be necessary. In reality, this does not occur.

Properly focused development agency activity is necessary to achieve improved outcomes. Our task is to facilitate the efforts of people in the private sector who invest and create profit and jobs. What we do should be scaled to suit the size, location and distinctive characteristics of the area in which we work. Within this context, there are several common principles that apply in creating a positive climate and interacting constructively with the private sector:

1. Drive the strategic planning process, based on broad community consultation with maximum private sector input
2. Create awareness, knowledge and interest INSIDE and OUTSIDE the area
3. Identify and work with local proponents to produce investment-ready projects
4. Undertake direct marketing to attract project proponents and investors
5. "Handhold" project proponents through the establishment processes
6. Link investors and financiers with proponents of investment-ready projects
7. Continually identify opportunities and bring together people who can contribute to them

Drive the strategic planning process, based on broad community consultation with maximum private sector input

In areas where there are sensible, practical strategic plans with good acceptance and understanding, results are being achieved.

Outcomes

Opportunities are identified by the people who know an area best
A vision for the area can be conveyed with enthusiasm to those seeking opportunities, inducing a more positive attitude in them
Project proponents know what sort of activities are favoured in a particular area, and which ones are not
Any lack of infrastructure that could impede desired development is identified and addressed
A realistic appraisal of resources occurs
Quality information is produced and made available in user-friendly form for planning and decision-making

Example: Central Coast Regional Econonomic Development Strategy

Highlights are:

The entire community was consulted: public meetings, special interest group meetings, key stakeholder interviews
The process was not rushed: there were several draft stages, with people having plenty of opportunity for input
A coordinated partnership approach was nurtured between the development agencies, councils, government, media & private sector manufacturing and service businesses
The Strategy is genuinely accepted as being representative of the aspirations of the great majority of residents of the area
It is practical and implementable

The Central Coast Regional Economic Development Strategy has lead directly to:

Business After Hours
A Hydroponics Industry Development Plan
A $1.2 million Business Incubator at the Central Coast Campus, University of Newcastle
An active industry attraction & relocation program
An export assistance program
The Central Coast Agriculture Development Plan

Create awareness, knowledge and interest INSIDE and OUTSIDE the area

The classic stages required before a "sale" can be made are awareness, knowledge and f interest. It is just as important for this to occur inside an area as it is outside, since it is the 1 insiders who are the ambassadors; their energy and enthusiasm is essential in convincing the

outsiders that the area offers opportunities and a supportive climate.

Example: Grow Zone industry Attraction Program

23 opportunity identification workshops
Marketing of Grow Zone projects
Web site in partnership with Indelta, USQ
Hard copy materials
Employment of Industry Attraction Officer

Identify and work with local proponents to produce investment-ready projects

Once "hooked", proponents in most cases :still need considerable support and encouragement [ in bringing their projects to fruition. .

Example: Caloundra Wildflower Gardens & Eco-tourism Centre

Feasibility study involving Caloundra City Council, private developers, conservationists & Government agencies
Components –

Sunshine Coast Wildflower Gardens
Commercial native plant production
Enterprise Complex
Nature based tourism
Employment & training

Undertake direct marketing to attract project proponents, investors and purchasers of locally-produced product

When a project or area of development offers opportunities for many participants, development agencies can playa major part in direct marketing of the various opportunities to potential developers, investors and purchasers of product.

Example: Central Coast Hydroponics Development Plan, Lotus Red

"Central Coast: Hydroponics Centre of Australia "
Hydroponics Industry Development Officer
Sales to Singapore, Indonesia. Hong Kong, Malaysia
Attraction of new hydroponic enterprise~;
Hydroponics Research & Development Facility

"Handhold" project proponents through the establishment processes

Many proponents are discouraged from continuing with their projects because it all becomes "just too hard" to make the contacts and. negotiate the processes leading to a successful outcome. Removing some or all of the obstacles can make a significant difference.

Example: Fertiliser hatching plant, Goondiwindi

In one day:

Land inspections, option on suitable block
Introduction to three builders
Introduction to two welders of aluminium
Introduction to Council CEO, all Councillors bar one
Acceptance in principle of project by Council at evening meeting

Link investors and financiers with proponents of investment-ready projects

There are often investment-ready projects that fail or languish through their inability to attract appropriate investment. A pro-active approach to linking developers and investors can lead to successful partnerships that would not otherwise have occurred simply through lack of awareness.

Example: Obi Beef

Organic beef from the Channel country
Future Search workshop idea
Dedicated processing plant at Quilpie
Export to Asia
Grow Zone Investment Roadshow
Interest in providing finance

Continually identify opportunities and bring together people who can contribute to them

Opportunity identification is arguably the single most important process we have at our disposal.

Examples

Future Search workshops
Maranoa Opportunity Identification Project
Goondiwindi Cotton
Row crop guidance system

Summary

Results are achieved by:

Enthusiasm, drive, persistence, leadership
Having a strong and focussed vision
Involving a lot of people in striving to achieve the vision
Adopting a realistic commercial approach
Continually identifying opportunities and putting them forward
Paying as much attention to our internal clients as our external ones

”Its no use being a top pilot if you keep landing at the wrong airport”

We need to be skilled professionals in what we do. The objective way to measure our success is in terms of:

Net gain in jobs
Improved business viability

An example of very focused, measurable: goals comes from the Central Coast Regional Economic Development Strategy:

GOAL N: To generate new industry and business

Targets

150 new industries and businesses in the region by 2002, with an employment average of 20
An average of 600 net gain in jobs per annum from relocated and new industry and business in the period 1997-98 to 2001-02

GOAL E To develop existing business and industry