Operational Plan: Executive Summary, FY 2021 - Virginia Economic Development Partnership Authority
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The Executive Summary of the FY 2021 Operational Plan of the Virginia Economic Development Partnership Authority (VEDP), dated June 30, 2020. It states that the plan marks the third full year of implementation of the Strategic Plan for Economic Development of the Commonwealth of Virginia (FY19-FY23) and contains 11 major initiatives. The goals listed include building clarity and alignment on VEDP's strategic direction and outlining priorities with deliverables and deadlines for the year. The contents list major initiatives, draft performance metrics, a FY21 budget summary and the components of the plan required by the Code of Virginia.
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“Operational Plan: Executive Summary, FY 2021 - Virginia Economic Development Partnership Authority.”
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FY 2021 OPERATIONAL PLAN:
EXECUTIVE SUMMARY
June 30, 2020
TABLE OF CONTENTS
Introduction and overview to the FY21 Operational Plan 3
Major Initiatives 16
Draft Performance Metrics 18
Appendix: FY21 Budget Summary 20
Appendix: Components of the FY21 Operational Plan Required by the Code of Virginia 23
NOTES
2
INTRODUCTION
▪ The Virginia Economic Development Partnership Authority (VEDP) was established by the
General Assembly in 1995 (Code of Virginia, § 2.2-2234 et seq.).
▪ VEDP is given broad powers in its enabling legislation “…to encourage, stimulate and
support the development and expansion of the economy of the Commonwealth.”
▪ This FY21 Operational Plan has been prepared in accordance with Code of Virginia, § 2.2-
2237.1 D.2. and the Virginia Budget, which require that an Operational Plan be completed
and submitted to the Chairmen of the House Appropriations and Senate Finance and
Appropriations Committees and to the Director of the Department of Planning and Budget
prior to July 1, 2020.
▪ This FY21 Operational Plan marks the third full year of implementation of the Strategic
Plan for Economic Development of the Commonwealth of Virginia (FY19-FY23), approved
by the VEDP Board of Directors in late 2017 pursuant to the Code of Virginia, §2.2-2237.1.
The 11 major initiatives contained in this FY21 Operational Plan are largely derived from
the initiatives outlined in the Strategic Plan.
NOTES
3
THE OPERATIONAL PLAN GUIDES VEDP’S ACTIONS THROUGHOUT
THE YEAR
▪ This FY21 Operational Plan is based primarily upon the goals, strategies, and initiatives outlined
in the FY19-23 Strategic Plan. The annual plan is the result of a VEDP-wide effort which identified
improvement areas and new ideas for the coming year and translated those ideas into a plan for action.
▪ The goals of this FY21 Operational Plan include the following:
‒ Build clarity and alignment regarding VEDP’s strategic direction
‒ Outline major priorities with deliverables and deadlines for the year
‒ Ensure improved accountability for performance
‒ Deliver upon numerous improvement opportunities identified by VEDP team members
▪ Progress against this Operational Plan* will be reviewed throughout the year through the
following activities:
‒ Regular updates at senior team meetings
‒ Regular internal meetings of each VEDP division (e.g., Business Investment, Workforce, Trade)
‒ Quarterly update meetings between each division head (e.g., Vice Presidents and Managing
Directors) and their respective reports
‒ Ongoing updates to the Operational Plan tracker
* The implementation timelines outlined in the Operational Plan are subject to adjustment based on VEDP project activities
NOTES
and/or changes in priorities
4
VEDP ORGANIZATIONAL OVERVIEW (1 OF 2)
Division Overview
Business Investment ▪ Collaborates with regional and local partners to identify and convert high-potential leads
and prospects into project opportunities and decisions for Virginia, as well as support the
retention and growth of existing Virginia employers
Marketing and ▪ Manages Virginia’s business brand (and VEDP’s) and builds awareness of the
Communications Commonwealth’s advantages among C-level executives nationally and globally
Research ▪ Creates customized, relevant, and insightful analysis and data visualizations that promote
a common understanding of Virginia’s full value proposition, with a central focus on fast-
turn, high-priority, tailored client service (e.g., RFP responses, site recommendations)
Incentives ▪ Reviews, vets, tracks, and coordinates economic development incentives administered
by VEDP and those offered by the Commonwealth or a locality in conjunction with VEDP
Talent Solutions ▪ Supports the human capital needs of new and expanding businesses by delivering world-
class, customized workforce recruitment and training solutions in partnership with the
Virginia Community College System; managing the Virginia Jobs Investment Program
(VJIP); and developing systemic talent pipeline initiatives to address regional or statewide
talent shortages
International Trade ▪ Supports growth and expansion of Virginia’s local firms seeking international markets
through the administration of targeted programs to increase managerial capabilities and
improve networks in key countries and regions
External Affairs ▪ Cultivates and manages relationships with local, state, and federal elected officials, as
well as VEDP’s economic development partners across the Commonwealth, including
convening work groups and overseeing special initiatives regarding policy development
NOTES
and program implementation
5
VEDP ORGANIZATIONAL OVERVIEW (2 OF 2)
Division Overview
Economic ▪ Develops medium-to-long-term strategies to improve the foundations for state, regional,
Competitiveness and local economic growth
Information Technology ▪ Maintains and updates all internal, web-based applications; provides support for teams
working with outside web applications, such as Salesforce; and supports VEDP network
services and devices
Fiscal and Support ▪ Manages all accounting and budget-related work and provides facilities, fleet management,
Services and procurement services
Human Resources ▪ Manages employee payroll and benefits and coordinates employee hiring, training, and
performance reviews
Legal Services ▪ Advises on legal aspects of legislation, rules, contracts, and other issues; manages legal
activities for VEDP
Internal Audit ▪ Performs periodic audits on operations, accounts, and transactions and reports findings to
the VEDP Board
NOTES
6
VEDP ORGANIZATIONAL CHART
NOTES
7
VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP BOARD OF
DIRECTORS As of June 9, 2020
Ned W. Massee, Chair William “Bill” Hayter
Croatan Advisors President and CEO, The First Bank & Trust Company
The Honorable Brian Ball, Vice Chair April Kees
Secretary of Commerce and Trade, Commonwealth of Virginia, Director, Virginia Senate Finance and Appropriations Committee,
Ex Officio Member Ex Officio Member
Carrie Hileman Chenery The Honorable Aubrey L. Layne, Jr.
Principal, Valley Pike Partners Secretary of Finance, Commonwealth of Virginia, Ex Officio
Member
C. Daniel Clemente Vincent J. Mastracco, Jr.
Chairman and Chief Executive Officer, Clemente Development Partner, Kaufman & Canoles PC
Company, Inc.
Heather Engel Anne Oman
Managing Partner, Strategic Cyber Partners Director, Virginia House of Delegates Appropriations Committee,
Ex Officio Member
Gregory B. Fairchild Dan M. Pleasant
Associate Dean for Washington, DC Area Initiatives at the Chief Operating Officer, Dewberry
University of Virginia, Darden School of Business
Tom Farrell, II John F. Reinhart
President/CEO, Dominion Energy CEO and Executive Director, The Port of Virginia, Ex Officio
Member
Deborah Flippo Xavier R. Richardson
Economic Development Program Manager, Draper Aden Executive Vice President, Corporate Development and Community
Associates, Inc. Benefit, Mary Washington Healthcare President, Mary Washington
Hospital and Stafford Hospital Foundations
Richard “Rick” O. Harrell, III
NOTES
President (retired), R.O. Harrell Inc.
8
OVERVIEW OF THE STRATEGIC PLAN FOR ECONOMIC
DEVELOPMENT OF THE COMMONWEALTH OF VIRGINIA (FY19-23)
▪ On December 1, 2017, VEDP produced its “strategic plan for specific economic
development activities for the Commonwealth as a whole” in accordance with § 2.2-2237.1
of the Code of Virginia
▪ As required by Code, the Strategic Plan identifies specific goals and objectives for VEDP,
as well as quantifiable metrics and performance measures for each goal and objective. The
Plan also includes a systematic assessment of how VEDP can best add value in carrying
out each of its statutory powers and duties
▪ As required by Code, the Strategic Plan was crafted to be responsive to the Governor’s
Economic Development Strategy, called for in § 2.2-205
▪ Key economic development partners were integrally involved in the strategic planning
process, including state, regional, and local economic development agencies and
organizations and international trade organizations
▪ As noted above, there is also considerable alignment between this FY21 Operational Plan
and VEDP’s Strategic Plan as this year’s Operational Plan marks the third full year of
Strategic Plan implementation. The 11 major initiatives contained in this FY21 Operational
Plan are derived from the initiatives outlined in the Strategic Plan
NOTES
9
FRAMEWORK FOR IMPLEMENTING VEDP’S STRATEGIC PLAN
▪ Economic development is a combination of activities intended to create jobs, increase wages, and/or
achieve industry diversification
‒ VEDP will primarily focus on growing the Commonwealth’s economy and bringing the greatest
number of high-quality jobs to Virginia’s regions
‒ VEDP will typically avoid actively recommending incentives or investments in projects that grow
a region, community, or business at the expense of other regions, communities, or businesses
▪ Creating a new Virginia economy requires aggressive, focused leadership from VEDP in three broad
areas of activity:
‒ “Business development” aims to influence the investment and location decisions of corporate
leaders (e.g., marketing, business attraction and recruitment)
‒ “Product development” aims to increase Virginia’s attractiveness for business investment and
economic opportunity (e.g., public policy efforts, community development, site development)
‒ “Trade development” aims to encourage exports of Virginia products and services
▪ Much of economic development is done at the regional or local level (e.g., site selection process,
marketing leverage, business environment, economic relationships)
▪ VEDP will strive to make its incentive and investment recommendations based on public return-on-
investment (ROI) analyses
NOTES
10
STRATEGIC PLAN IMPLEMENTATION
▪ The Strategic Plan for Economic Development of the Commonwealth of Virginia adopted by
the VEDP Board is a five-year plan (FY19-FY23), implementation of which began on July 1,
2018
▪ The Strategic Plan includes five transformational goals, the achievement of which requires
the implementation of 40 initiatives
▪ Some of the initiatives in the Strategic Plan will require new funding to implement
▪ VEDP’s FY21 Operational Plan is based on the initiatives outlined in the Strategic Plan as
well as new initiatives developed in response to the economic impacts of the COVID-19
pandemic
▪ Some of the Strategic Plan initiatives scheduled for implementation in FY21 will not be
funded, slowing progress toward achieving the transformational goals
▪ VEDP is prepared for the third year of implementation of the Strategic Plan and, in Fall
2019, developed a draft of final metrics to track performance. VEDP is working on finalizing
that set of metrics
NOTES
11
TRANSFORMATIONAL GOALS FOR THE COMMONWEALTH AND VEDP
The following five transformational economic development goals were identified for both
VEDP and the Commonwealth of Virginia as part of VEDP’s strategic planning process
completed in FY18
1. Position Virginia to achieve a growth rate (measured by employment and median
earned income of workers) among that of the top 5-10 states in the U.S.
2. Ensure every region participates in the growth of the Commonwealth (i.e., all with
positive growth in employment and median earned income of workers)
3. Restore Virginia to its previous leadership position near the top of the national business
climate rankings (i.e., average position among the top 3-5 states)
4. Reestablish VEDP as one of America’s most effective state economic development
organizations (principally to better enable accomplishment of the top three
transformational goals)
5. Exhibit collaboration and coordination as hallmarks of VEDP (i.e., place a central focus
on the “P” in VEDP)
NOTES
12
FIVE TRANSFORMATIONAL GOALS CAN BE ACHIEVED VIA THE
EXECUTION OF 14 STRATEGIES OVER THE NEXT 5-7 YEARS
Goal Strategy
Cultivate target industry 1. Push new boundaries as a U.S. leader in information technology
growth clusters
2. Assemble a world-class transportation and logistics hub
3. Position Virginia’s manufacturing base to be future-ready
4. Create business services and operations centers of excellence (e.g., HQs)
5. Capitalize on Virginia’s unique assets to become a leader in promising disruptive
technologies (e.g., unmanned systems, genomics, personalized medicine)
Enhance VA's economic 6. Strengthen Virginia’s human capital development engine
competitiveness
7. Assemble an ample, strategic portfolio of project-ready sites and buildings across
Virginia
8. Rigorously assess and steadily improve Virginia’s state, regional, and local economic
competitiveness
9. Leverage public-private partnerships to strengthen Virginia’s digital infrastructure (i.e.,
broadband)
10. Place a special focus on achieving growth in Virginia’s rural regions and small metros
Enhance VEDP’s 11. Cultivate world-class execution at VEDP
capabilities
12. Implement robust marketing/branding, lead generation, and site consultant cultivation
programs
13. Strengthen and expand business and international trade development programs
14. Become a national leader in incentives administration
NOTES
13
PROGRESS HAS BEEN MADE ON ALL FIVE TRANSFORMATIONAL
GOALS, BUT MUCH WORK REMAINS TO FULLY ACHIEVE THEM
Transformational Goal Description Outlook
1. Robust state job growth Position Virginia to achieve a growth rate (measured by employment and
median earned income of workers) among that of the top 5-10 states in
the U.S.
2. Every region wins Ensure that every region participates in the growth of the Commonwealth
(i.e., all with positive growth in employment and median earned income of
workers)
3. Best state for business Restore Virginia to its previous leadership position near the top of the
national business climate rankings (i.e., average position among the top
3-5 states)
4. Top state EDO Reestablish VEDP as one of America’s most effective state economic
development organizations (principally to better enable accomplishment of
the top three transformational goals)
5. Super collaborator Exhibit collaboration and coordination as hallmarks of VEDP (i.e., place a
central focus on the “P” in VEDP)
• On track to achieve long-term goals with no major concerns • Will likely not meet goal (typically due to lack of funding)
• Will make progress against long-term goals but concerns • Not started
(typically due to funding challenges)
NOTES
14
TABLE OF CONTENTS
Introduction and overview to the FY21 Operational Plan 3
Major Initiatives 16
Appendix: Draft Performance Metrics 18
Appendix: Draft Budget 20
Appendix: Components of the FY21 Operational Plan Required by the Code of Virginia 23
NOTES
15
TENTATIVE MAJOR INITIATIVES FOR THE FY21 OPERATIONAL PLAN
# Major initiative Owner Page
1 Refresh FY19-23 Strategic Plan, including addressing post-COVID challenges and Brazier 17
opportunities
2 Finalize and execute strategies to capture post-COVID economic recovery and growth Brazier/ 18
opportunities Moret
3 Implement lead generation Initiatives targeting post-COVID growth industries Barnett 19
4 Embed continuously-refined value proposition in VEDP messaging and marketing materials Melançon 20
5 Leverage the Virginia Talent Accelerator Program to win post-COVID reshoring projects Grundmann 21
and refine program operations
6 Identify and invest in key talent shortages across high-demand occupations Watkins / 23
Harder
7 Develop and execute an outreach strategy to assess local and regional competitiveness Watkins / 25
Harder
8 Cultivate rural and small metro tech centers across Virginia Rodriguez 26
9 In partnership with the Virginia Chamber, complete launch of Team Virginia, an executive- Melançon 28
to-executive 501(c)3 marketing organization
10 Implement a comprehensive talent management program El Koubi / 29
VP of HR
11 Support Virginia businesses through the international trade plan and virtual trade missions Agee 32
NOTES
16
TABLE OF CONTENTS
Introduction and overview to the FY21 Operational Plan 3
Major Initiatives 16
Appendix: Draft Performance Metrics 18
Appendix: Draft Budget 20
Appendix: Components of the FY21 Operational Plan Required by the Code of Virginia 23
NOTES
17
PERFORMANCE METRICS AND GOALS FOR FY21*
FY21 Goal
VEDP-assisted project announcements
Capital investment ($B) TBD
Direct jobs TBD
VEDP-generated leads
Number TBD
Number converted TBD
VEDP International Trade programs
Companies enrolled TBD
Projected international sales ($ million) TBD
Projected trade-supported jobs TBD
* Due to substantial uncertainty with respect to the global and national economic outlook, FY21 metric-based outcome
NOTES goals cannot be reasonably determined as of late June 2020 – they may be settled by the VEDP Board in the fall
18
TABLE OF CONTENTS
Introduction and overview to the FY21 Operational Plan 3
Major Initiatives 16
Draft Performance Metrics 18
Appendix: Draft Budget 20
Appendix: Components of the FY21 Operational Plan Required by the Code of Virginia 23
NOTES
19
VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP FY2021 BUDGET
SUMMARY
Revenue Sources
FY2021 FY2020 Change
Revenue
COV General Fund Budgeted $35,302,309 $35,139,731 $ 162,578
Carry Forward Funds 5,246,128 6,914,243 (1,668,115)
Participation and Mission Fees 365,000 475,000 (110,000)
Other Revenue 324,600 313,100 11,500
Total Revenue $41,238,037 $42,842,074 $ (1,604,037)
NOTES
20
VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP FY2021
BUDGET SUMMARY (CONT’D)
Budgeted Expenditure Summary
FY21 FY20 $ %
Dollars Staff Dollars Staff Change Change
Division Budgets
Talent Solutions (Note) $ 7,967,294 40 $ 4,729,033 26 3,238,261 68%
International Trade 6,924,772 19 6,849,596 19 75,176 1%
Business Investment 6,078,553 32 6,187,073 32 (108,520) -2%
Research 2,874,932 22 2,695,098 22 179,834 7%
Marketing & Communications 4,483,864 11 4,410,817 11 73,047 2%
Economic Competitiveness 999,039 7 1,001,597 7 (2,558) 0%
Information Technology 1,401,537 10 1,405,237 10 (3,700) 0%
Incentives 637,906 5 631,996 5 5,910 1%
Administration 4,307,640 20 4,131,127 20 176,513 4%
Total Division Budgets $ 35,675,537 166 $ 32,041,574 152 3,633,963 11%
Pass Throughs, Grants and Projects 5,562,500 - 10,800,500 - (5,238,000) -48%
Total VEDP Budget $ 41,238,037 166 $ 42,842,074 152 (1,604,037) -4%
Note: New recurring costs for the Virginia Talent Accelerator Program will be avoided until VEDP has
adjusted its budget to account for anticipated state general funding reductions for FY21.
NOTES
21
TABLE OF CONTENTS
Introduction and overview to the FY21 Operational Plan 3
Major Initiatives 16
Appendix: Draft Performance Metrics 18
Appendix: Draft Budget 20
Appendix: Components of the FY21 Operational Plan Required by the Code of Virginia 23
NOTES
22
COMPONENTS OF THIS FY21 OPERATIONAL PLAN REQUIRED BY THE
CODE OF VIRGINIA
This section of the FY21 Operational Plan contains the two components required by statute,
itemized below:
Virginia Code § 2.2-2237.1. Board of directors to develop strategic plan for economic
development; marketing plan; operational plan; submission
2. An operational plan for carrying out the powers and duties of the Authority. The operational plan of the
Authority shall, at a minimum, include:
a. A process to evaluate the Authority's effectiveness in exercising the powers and duties conferred by
this article, including the Authority's ability to work with other state, regional, and local economic
development organizations and international trade organizations; and
b. A strategy for coordinating with state agencies that administer economic development incentive
programs and relevant executive branch committees, councils, authorities, and commissions to
maximize the effectiveness of state economic development programs and activities.
NOTES
23
VEDP WILL CONTINUE TO EVALUATE ITS EFFECTIVENESS IN
EXERCISING ITS POWERS AND DUTIES
VEDP’s approach to addressing this statutory requirement includes four components:
Requirement: 1. Assessment of how VEDP can best
add value relative to its statutory
A. Develop a process to powers and duties
evaluate the Authority's
effectiveness in exercising
the powers and duties
conferred by this article, 2. VEDP functional assessments
including the Authority's
ability to work with other
state, regional, and local 3. VEDP metrics and performance
economic development indicators
organizations and
international trade
organizations
4. Annual stakeholder survey regarding
VEDP’s effectiveness in working with
partners
NOTES
24
VEDP DEVELOPED A STRATEGY FOR COORDINATING WITH KEY
STAKEHOLDERS
VEDP’s approach to addressing this statutory requirement includes two components:
Requirement:
B. Develop a strategy for 1. Approach for coordinating with
coordinating with state local, regional, and statewide
agencies that administer economic development partners
economic development
incentive programs and
relevant executive branch
committees, councils,
authorities, and 2. Strategy for coordinating with
commissions to maximize other incentive-administering
the effectiveness of state agencies
economic development
programs and activities
NOTES
25
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