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EDANZ Future Options Paper - Change by design - June 2017

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Published by info, 2017-05-23 23:12:25

EDANZ Future Options Paper - Change by design - June 2017

EDANZ Future Options Paper - Change by design - June 2017

The Future of EDANZ | An options Paper

June 2017

EDANZ is at a crossroads, the
decisions taken by the Board
now will determine the future of
EDANZ

CONTENTS

1. Executive Summary
2. The do nothing option
3. Can/should EDANZ survive
4. What the research suggests

4.1 Members survey
4.2 International research
4.3 Stakeholder comments
5. Proposal for change
5.1 Principles of change
6. The changes
6.1 Strategic framework
6.2 Membership framework
6.3 What the new framework would look like
6.4 Benefits for members

6.4.1 Individuals
6.4.2 Corporates
6.4.3 Associates
7. Becoming financially sustainable
7.1 Membership fees
8. Achieving the change
9. Governance structure
10. Constitutional change
11. Other Options
12. Recommended model
13. Recommendations for consideration
14. The detail
14.1 Professional development and certification
14.2 Jobs Board
14.3 Networking opportunities at regional level
14.4 Salary Survey
14.5 Code of Ethics
14.6 Policy and Research
14.7 News service
14.8 Best practice
14.9 Awards
14.10 Membership framework
15. Results of member survey
16. Indicative three-year budget
17. Human Resource Plan

2

EXECUTIVE SUMMARY

In 2016 the Board requested that an “Options” paper be developed considering the future of EDANZ.

This paper has been informed by the views of members, partners, key stakeholders within New Zealand and the
practice of sister agencies around the globe.

Based on those views and considerations it is proposed that EDANZ rejects the option to ‘do nothing’, and resolves
to undertake a new strategic direction guided by a three year strategic plan that is informed by this paper.

The proposed measured changes include:

• A broadening of the current membership criteria to include all economic development practitioners in the
public and private sectors

• Establishment of a ‘partnership’ membership category specifically for sister agencies such as RTONZ,
NZCID, Property Council, Chambers of Commerce, Iwi, Māori Asset Holding companies etc.

• Development of an ongoing, comprehensive and stepped series of professional development opportunities
(online and face to face) that would enable (but not insist on) professional certification that is recognised
and valued by employers

• Development of a Policy and Research Advisory Committee made up of a mix of practitioners and
academics in the field with a focus on economic development practice that could guide a new research
portfolio that can influence policy and input into EDANZ submissions on matters of national importance to
economic development

• Creation of networking opportunities both at a national and regional level
• Provision of the latest news and events within ED nationally and internationally
• Introduction of a set of professional standards by establishment of an ethics code
• Undertakes an annual salary survey that enables nation-wide benchmarking of salaries and conditions
• Sharing of best practice via the EDANZ website and Award nominations
• A jobs board that enables members to immediately identify job opportunities within ED around the

country and employers to target ED professionals
• A review of EDANZ branding and name
• Commitment to the development of a three -year strategic plan on the basis of the proposals in this paper
• Regular updates to members via e.newsletters
• Staging of an annual conference with a bespoke designed stream of seminars that reflects practitioner

issues and the research activities of EDANZ
• A review of its governance structure

Lest this be thought to an ambitious agenda, the options paper provides the research upon which the rationale for
change is based, the detail and mechanics as to how each of the above changes may be achieved over the next three
years, and an indicative implementation budget for 2018-2021

3

Following the heartening responses received from both members and key stakeholders this paper ends on an
optimistic note and provides a direction that will enable EDANZ to step up, fulfil its potential and create the value-
add that Board members, practitioners and our partners aspire to.
The paper will form the basis for discussion at a two-hour Board workshop in June. It is hoped that by the end of
that workshop EDANZ will have a ‘way forward’ that will enable it to fulfil its raison d’etre.
Author: Susan Houston, Executive Officer, EDANZ

4

BECOMING THE HOME OF PRACTITIONERS

1. THE CONTEXT

EDANZ has been in a constant state of evolution since its inception. That evolution has included changes
in how ‘members’ are defined, changes to the governance system, significant changes in revenue, changes
in services offered, changes to establishment numbers and changes to its raison d’etre.

Most of that change appears to have been undertaken in an iterative way with the best of intentions in
every instance.

It is the opinion of the author, however, that EDANZ is in essence a ‘small business’ that is now in real
threat of demise due to a raft of changes that ‘taken together’ have undermined its influence, its reach, its
ability to function and its value to the wider constituency. Practically speaking a move to a stronger
business model is now required.

Perhaps the most obvious and tangible impact of the change has been the diminished revenue available to
EDANZ to reinvest in its services, with membership revenue dropping from $287,000 in 2014 to circa
$30,000 in 2016.

Perforce, along with that change in revenue has come a diminished level of service i.e. the demise of the
valued professional development program and conference and an absence of submissions to, or
connectivity with, sister agencies and relative central government ministries and a lack of executive
support to drive the business.

2. THE DO NOTHING OPTION

The future for EDANZ under this option is grim.

A diminishing confidence in it as a national organization will continue, the perception that it
offers little, if no value will become more prominent, members will consider leaving (indeed conversations
with one Board member indicates that this is already underway), practitioners will continue to question
EDANZ’s existence and partners will inevitably fill the vacuum left by a diminished offering.

The above picture is informed in large part from a recent survey of EDANZ members and partners.
Responses to both surveys suggest that communication between EDANZ and practitioners/partners has
suffered with many respondents disengaged and unaware of how or if EDANZ is adding value. The closure
of the EDANZ office and business as usual has not helped in this regard.

In short, it is now evident that the current model is not working for EDANZ, its Board, its natural partners,
or ED professionals.

3. CAN /SHOULD EDANZ SURVIVE?

Whilst EDANZ is a small business, it exists for a ‘public good’. As this respondent put it there is a core
justification for the future of EDANZ:

“To add tangible and measurable value to the work of economic development practitioners and agencies
across New Zealand and in doing so contribute to NZ Inc”.

Encouragingly, recent survey results suggest that respondents wish to see the ‘renaissance’ of EDANZ,
they want to see it become more relevant and proactive in meeting their needs. That undiminished and
yet frustrated appetite for a national agency offers EDANZ the opportunity, and indeed some may say an
obligation, to survive, and prosper, both for our members and NZ Inc.

5

4.0 WHAT THE RESEARCH SUGGESTS

If EDANZ is to grasp that opportunity and meet that moral obligation it will need to review its strategy, its
membership base, its communication tools, its partnerships, its services, its funding model and ultimately
its governance model.

4.1 MEMBER SURVEY

The survey of members has been the first step in that review. As an aside, it is worth noting that few
practitioners responded to the survey. This was in large part due to the fact that not all practitioners
received the survey – a hint of the communication problem that EDANZ currently confronts with busy
CEO’s expected to act as the primary communication conduit.
Nevertheless, of those that did respond 16 were either CEOs (9) or Senior Management (7) and have
decision making for a collective budget of at least $165m and responsibility for over 600 staff. This gives
us some hope that the results are representative and of value. The results that we did receive suggest that
respondents would value the following professional services:

• Professional development opportunities (85% of respondents valued this)
• Networking (60+ % of respondents valued this)
• National research which adds to the body of economic development knowledge (75% of

respondents valued this)
• The sharing of best practice (72% of respondents valued this)

• The latest economic development news (60% of respondents valued this) There was an indifferent

response to the following services, however these are revenue raising opportunities for EDANZ so
should be considered:

• A jobs board (40% of respondents valued this)
• A salary survey (45% of respondents valued this)
• Certification of the profession (50% of respondents valued this)
The full results of the survey are attached.
Respondents also stressed their plea for a ‘business model’ that recognised the difference in size, mandate,
issues, governance structure and funding of economic development agencies and expressed the sentiment
that one size, does not, nor will ever, fit all.

4.2 THE RESULTS OF INTERNATIONAL RESEARCH

Research of services offered by sister agencies across the globe demonstrate a consistent package of wrap
around services for both individual members and corporate members.
The matrix below reflects a consistency of offering and membership structure.

6

New ED IED EDAC BC – EDA EDA IEDC
Zealand Australia UK Canada British Scotland
Columbia Yes Yes
Professional No Yes Yes Yes
Development Yes
No Yes Yes Yes
Certification No Yes Yes Yes Yes No Yes
Jobs Board Yes Yes Yes Yes Yes Yes Yes
No Yes Yes Yes Yes Yes Yes
Resources Yes Yes Yes Yes Yes Yes Yes
No Yes No No Yes Yes Yes
Latest News No Yes Yes No No No Yes
No Yes Yes No No Yes Yes
Events/Conference Yes Yes Yes Yes No Yes Yes
No Yes Yes Yes No Yes
Blog Yes Yes Yes Yes
Yes Yes Yes
Submissions Yes Yes Yes

Policy

Awards
Individual
Membership

Corporate
Membership

4.3 STAKEHOLDER COMMENTS

This paper has also been informed by communications with key stakeholders such as Callaghan Innovation,
RTONZ, Tourism Industry Aotearoa, Universities, Polytecs, MBIE etc.

The key messages coming out of those communications are as follows:

a) Most expressed the wish to see EDANZ become effective in its role as peak organisation representing
ED practitioners

b) Many expressed an interest in partnering with EDANZ in some way i.e. RTONZ, Callaghan Innovation,
TIA

The results of the stakeholder survey are as follows.

Demographics of Respondents:

• 25% Private Sector organizations
• 62% Public Sector organizations
• 13% Trade associations
• 88% of respondents were CEO’s or Executive Managers

Respondents had combined responsibility for $55m annual turnover and 7400 staff.
Respondents were asked to value from 1(being the most valued) to 5 what services their organization
would value and also their staff.

The results were as follows:

7

Salary Survey Organizational Individual
2.8 3.0
2.6
Jobs Board 2.4 2.8
2.6
Networking 2.8 2.6
Awards 2.6 2.8
3.4
Certification 3.0 2.3

Professional Dev 3.6

News service 3.4
Research 3.4

Comments made by stakeholders were:

Unaware EDANZ existed

Need for EDANZ to have stronger sense of purpose
Request for a partnership agreement
Call for greater alignment between regional tourism and economic development
Call for regular catch ups.
Keen to work with EDANZ

5.0 PROPOSAL FOR CHANGES TO EDANZ

The results of the member /stakeholder surveys and research into international practice by sister agencies has
informed the following principles of, and proposal for, change.

5.1 THE PRINCIPLES OF CHANGE

The proposed changes are based upon eight key principles:

1) The need for a strategic framework, and associated performance measures that commits EDANZ
to ‘one agreed direction’ for the next five years, thereby delivering a stability that EDANZ as a
small business requires if it is to be of sustained value to its members. That strategy will then
cascade into all reports, the annual plan, performance measures and budget.

2) Establishment of a membership framework which recognizes that organizations beyond our
existing membership base are active in delivering economic development

3) Making EDANZ relevant to all economic development professionals within NZ

4) Development of constructive partnerships with sister agencies and organizations

5) The need for recognition of economic development practice as a respected profession

6) Establishment of a range of services that add value to the work of both individuals and
organizations engaged in economic development, both in the private and public sectors

7) A sustainable financial model

8) The ability to capture the considerable intellectual capacity that exists amongst ED professionals

9) Effective and sophisticated methods of communication with ‘all’ members.

8

6.0 THE CHANGES

6.1 STRATEGIC FRAMEWORK

EDANZ is ultimately a small business that requires the systems and processes appropriate to a small business.
Fundamental to the stability of the organization is an agreed direction which underpins all reports, the annual
plan, budget and performance targets. This is especially important for a small business whose governance
changes frequently. It is proposed that a strategic plan be implemented over the next three years on the basis
of the proposals in this paper.

6.2 MEMBERSHIP FRAMEWORK

Whilst our current membership makes a substantial contribution to NZ Inc through the delivery of a raft of ED
services, there are many other organizations and individuals, both public and private that share in that work.
For example, the Department of Conservation, the Ministry of Transport, NZTA, MBIE, MPI, NZTE, consultants,
NZCID, Chambers of Commerce, Iwi etc. If EDANZ is to be relevant and add value to the work of all economic
development practitioners it must:

a) Gain an understanding of the scope and work of ED practitioners nationally and internationally.
b) understand their needs
c) communicate effectively with them
d) deliver quality, professional services that they value
e) be appropriately resourced

With the above imperatives in mind it is proposed that EDANZ move from its current membership structure of
14 regional EDA representatives to a multi-layered structure which:

a) enables both individual and corporate membership
b) enables corporate partners and associates
c) still reflects a commitment to regional development
d) ‘professionalises’ the status of the economic development ‘profession’

6.3 WHAT MIGHT THAT LOOK LIKE?

The new membership model would enable a broader membership base that reflects the reality of the myriad
of people/organizations contributing to economic development decision making, funding and delivery across
New Zealand.

For example, it would open membership up to individual practitioners and entities within central, local and
regional government at both a governance and officer levels, the private sector, crown entities and other
organizations engaged in ED, and academic institutions.

It would enable corporate partnerships and sponsors in sympathy with the EDANZ raison d’etre to support the
work of EDANZ through an associate membership status.

In short, the proposal is for three membership categories:

• Individual
• Corporate
• Associates

9

6.4 VALUE PROPOSITION

Inevitably EDANZ needs to be clear about its added value for each of the above categories of membership.
Individual membership would be open to any individual working in economic development. This sole criteria
would be left to the individual to determine based on the value proposition.
It is proposed that individual members be offered the following benefits:

• An ongoing, comprehensive and stepped series of professional development opportunities (online and
face to face) that would enable professional certification that is recognized and valued by employers

• A jobs board that enables members to immediately identify job opportunities within ED around the
country and internationally

• Networking opportunities at a regional and national level
• The development of an annual salary survey that enables nation-wide benchmarking of salaries and

conditions
• The latest news and events within ED nationally and internationally
• Tangible commitment to a set of professional standards
• The opportunity to have input into EDANZ submissions on matters of national importance to economic

development
• An annual conference with a bespoke designed stream of seminars that reflects the issues and

preoccupations of individual practitioners
• Regular newsletters
• The opportunity to have input into the shape of the EDANZ research and policy program
• A national peak body that advocates and speaks with authority on behalf of the interests of practitioners.
• Regular networking opportunities at a regional level
• A right to one vote at the AGM
• Use of post nominals to be determined following rebranding i.e. – M.EDNZ

6.4.1 RESPONSIBILITIES FOR INDIVIDUALS:

As with membership of any organization, entitlements bring certain responsibilities. It is proposed that the
following responsibilities be introduced for individuals:

• A demonstrable commitment to a professional code of ethics upon registration
• A demonstrable commitment upon registration to ongoing professional development through engaging in

a number of hours (to be decided by the Board) of professional development per annum (membership
would lapse if hours not fulfilled)

10

6.4.2 PROPOSED BENEFITS FOR CORPORATES:

Corporate membership is open to any organization that is funding, delivering or facilitating economic development
in New Zealand.

It is proposed that corporate members be offered the following benefits:

• Access to database of CV’s made available by those individuals seeking new opportunities (this would be a
similar system to that offered by SEEK)

• Access to thousands of individuals working within economic development interested in the latest job
vacancies

• The right to one vote at the AGM
• A presence on the EDANZ website
• The opportunity to have input into EDANZ submissions on matters of national importance to economic

development
• The opportunity to have input into the shape of the EDANZ research programme
• The use of the EDANZ logo in economic development material – this would be on the basis of EDANZ

adopting an all care but no responsibility for the activities of its respective corporate members
• The opportunity to engage ‘certified’ practitioners who have an exemplary level of skills, expertise and

knowledge in their chosen field of economic development and are committed to ongoing professional
development
• A level of confidence that in engaging an EDANZ member they are hiring an individual who is committed
to a code of ethics.
• The ability to apply appropriate salary scales via the EDANZ annual salary survey
• An annual conference with a bespoke designed stream that reflects the issues and preoccupations of
corporate members
• A demonstrable commitment via an MOU to supporting EDANZ and its objectives – that support might
come in many forms for example: time off for individual employees to study, financial support for
individual subscriptions to EDANZ or professional development costs, making it a pre-requisite of
employment that individuals are members of EDANZ

6.4.3 BENEFITS FOR ASSOCIATES:

The final proposed category of membership is Associate. Associates will be entities that are sister agencies such as
RTONZ, entities who are in sympathy with the raison d’etre of EDANZ and wish to ‘partner’ with it.

The following benefits are proposed for Associate membership:

• Automatic sponsorship without additional cost of the EDANZ conference
• A presence on the EDANZ website
• An MOU which details how the partnership will operate

Responsibilities of associates

• There are no responsibilities proposed for Associate members other than honouring the partnership
agreement

11

7.0 HOW DOES EDANZ DELIVER THE ABOVE SERVICES AND BECOME FINANCIALLY SUSTAINABLE

One of the key concerns for the Board in recent years has been the considerable operational costs vis a vis revenue.
The following proposals seeks to avoid duplicating that conundrum going forward.

Some of the benefits of membership outlined above generate profit, some are cost neutral
and some will be a cost to EDANZ. Whilst some services didn’t score particularly high on the survey results they
will nevertheless be important to the resourcing of EDANZ. For example, all of the following are not only good for
the profession but will also contribute to the financial sustainability of EDANZ:

• A jobs board
• Certification
• Annual Conference
• Professional Development

All of the above will generate a substantial revenue for EDANZ after a year or so of establishment. The certification
is important to ensure take up of professional development. You can find an indicative three-year budget below
(section 16).

7.1 MEMBERSHIP FEES

Fundamental to a sustainable revenue will be a change in
membership structure and fees.

Earlier in the paper I identified the proposed membership structure
and benefits. The following fee structure is proposed to accompany that structure and benefits.

Individuals: $380 per annum
Corporates: $5000 per annum
Associates: $1000 per annum

This fee structure has been informed by fees adopted by sister agencies internationally.

All fees are ED IED EDAC BC – EDA EDA
British Scotland
in NZ $ Aus UK Canada Columbia

Individual 436 375 unavailable 320 125
Corporate 2183 unavailable 635
Up to Up to
Associates 0 9435 0 9435

0 0

It is proposed that the new fees and structure be introduced in 2018 and supported by a concerted membership
drive that commences in January 2018. This too would require a resource that is reflected in the attached budget.

8.0 ACHIEVING THE OBJECTIVES:

The above objectives cannot be achieved without the support of the current Board of EDANZ. In an effort to provide
the Board with a level of comfort I have also provided details of how the services might be delivered along with a
timeline, budget and sequencing for each service. For now, the matrix below provides the headlines in terms of
timing, resourcing and budget.

12

Service Timing Resource Required Budget

Professional To be developed in It is proposed that the professional Ongoing: The initial setting up of the
Development 2018 and introduced development stream be self - professional development programme
Program and as soon thereafter as sustaining. would cost around $3000 per course. A
Certification possible – where course would not run unless there
possible RTONZ and I envisage engaging a professional were sufficient numbers to make it self
EDANZ to work development coordinator who would sustaining.
together on ‘deliver’ the programme. The salary
development of this for that coordinator would be a mix of Initial Outlay: A co-ordinator would
programme base and bonus. cost around $50,000 per annum, with a
bonus of around 20% of surplus.
Jobs Board To be developed and The jobs board would cost $1500 to Initial outlay: $1500
launched in 2017. introduce. This is largely for IT
support and applications. Ongoing:
Networking To be developed The jobs board would be self -
Opportunities where interest exists Any real costs would be borne by the sustaining with advertisers able to
regional members attending the event publish the jobs themselves.
in 2018 i.e. drink/catering. EDANZ would Initial outlay: $1000 for booking
provide the booking system that function to be added to website.
Annual Salary To be developed in allows regional members to publish
and book a regional event. Ongoing: No ongoing cost. However,
Survey 2020 the Jobs Board has the potential to earn
EDANZ would design and initiate the up to $120,000 per annum. An idea of
survey. EDANZ could conceivably what can be expected in terms of
collate and analyze also. income over the coming three years
can be found in the indicative budget.
Time is the only commitment required
for the annual salary survey.

Code of Ethics To be developed in Time and thought only. 0
2018
A virtual Administration only Time
Policy and To be developed in
Research 2018
Advisory
Committee

World ED To be developed in $1000 cost for service to be added to $1000 only as an initial outlay, no
news 2017 the EDANZ website. ongoing costs.
Rebranding
of EDANZ To be developed in $2000 No ongoing costs.
2018
Membership I envisage engaging a professional A co-ordinator would cost around
Drive Collateral to be development coordinator who would $30,000 per annum, with a bonus
developed in 2017 ‘deliver’ the program. The salary for structure for corporate, individual and
and drive to start in that coordinator would be a mix of associate members brought on board.
2018 base and bonus.

13

9.0 EDANZ – ITS GOVERNANCE STRUCTURE

If these changes become a reality there will be a need to review the current governance structure. This is not an
immediate need but something to be considered by the existing Board at some future date of its choosing.

The following board structure and transition process is proposed for consideration based on the following
principles:

• That the Board be a ‘policy board’ please see link for more information on this model of governance.
• That Board membership not be based on regional representation or membership of public/private sector

or city/rural segmentation but rather the membership structure
• The need for a small, nimble and decisive Board which can facilitate rapid change
• The need for a Board which is elected and reflects the input of all members.
• A Board membership that is highly engaged and committed

9.1ROLE OF THE BOARD:

• to set and oversee implementation of strategy and achievement of organizational KPI's
• to identify and understand the needs of practitioners
• to engage the CEO and monitor performance
• to champion the profession
• to be representative of both public and private sector members
• to understand the ED ecosystem

9.2PROPOSED BOARD STRUCTURE:

A Board of 7 based on the following elected members:

9.1.1 4 Corporate representatives
9.1.2 2 Individual representatives
9.1.3 1 invited Associate member

9.3 ELECTIONS

Elections would be held using Election Buddy (at a cost of $30 per election) all members would have just one
vote.

9.4 TERMS OF BOARD

A two-year term is proposed for all Board members, with any member only empowered to stand for three terms (a
maximum of six years).

9.5 OFFICE BEARERS

The chair would be elected by the Board, the chair would then select the Deputy and Treasurer.

9.5 VOTING BY THE BOARD

Each member of the Board would have one vote. Upon the occasion of a tied vote the Chair holds the deciding vote.

14

9.6 TRANSITION TO NEW BOARD STRUCTURE:

The Board could consider a transition to the proposed structure. That transition could entail moving to a Board of
four RDA’s, two individuals and one associate.

10.THE CONSTITUTION OF EDANZ

If the above changes are accepted, it is proposed that the constitution of EDANZ be reviewed and refreshed before
the end of 2017 in line with the proposal. This may need a transitionary phase to be determined.

11. OTHER OPTIONS?

The two options outlined to date are follows:

a) Do nothing and increasingly struggle to demonstrate value
b) Adopt a range of services that reflects the research findings and meet the needs of all practitioners

There are however other options for the Board to consider. For example, the Board may resolve to adopt some but
not all of the services offered by its international sister agencies.

AN ADVOCACY MODEL

EDANZ could for example, choose to focus on providing thought leadership, becoming a ‘think tank’ that offers the
following services only:

• Research
• Submissions to Government
• Advocacy on behalf of EDAs
• Annual conference possibly

Should this option be adopted the Board would need to revisit its reason for being in a way that spoke specifically
and clearly to its role as advocate and researcher. The membership categories, fees and governance structure
would also need to be revisited to ensure sustainability and appropriate skills around the Board table. And finally,
it would need to consider how its research and submissions could best be grounded in practice.

Conceivably, under an advocacy model, membership would be limited to a range of members and
‘sponsor/partners’ prepared to pay fees to ‘influence’ policy. The governance structure would potentially become
less ‘representative’ with those willing to pay for advocacy possibly influencing activities. Whilst this model has its
attractions it doesn’t reflect the views / needs of respondents to the membership survey.

CAPABILITY BUILDING

Alternatively, EDANZ could choose to focus solely on the individual practitioner and capability growth. In which
case it may choose to provide the following services only:

• Professional Development
• Resources
• Conference

Under this model, the ‘organization’ still has a role to play but an indirect role, as funder of professional
development. ‘The questions of governance structure, fees and ‘reason for being’ remain live, and market demand
would have to be established. Similarly, the Board would need to be convinced that capability development within
the economic development profession is the most pressing need, again, this is not borne out in the research.

15

A MIXED MODEL

The final model that the Board may like to consider is one which represents a mix of both think tank and capability
building models. Under this model, the membership categories could remain as proposed, the governance
structure may need to be more representative of corporates than that proposed and the fees would have to be
considerably increased from those proposed unless other revenue raising activities were pursued i.e. jobs board.
This model has potential but it lacks balance, diversity and the robustness to be found in the recommended model.

12. THE RECOMMENDED MODEL

The recommended model ‘b’ is ‘holistic’ and more importantly it balances the interests, needs and influence of
individual practitioners, organizations and partners.

It weaves together a range of services perceived to be of value to the broadest possible range of membership
categories. Thereby collaborating and connecting with a powerful and diverse range of economic development
‘agents’. It does that in a way that enables the financial sustainability of EDANZ with some services paying for the
delivery of others i.e. surpluses from professional development, conference and jobs board supporting delivery of
research and submissions. In providing a diverse ‘wrap around’ service to all practitioners, EDANZ would evolve
into a robust and sustainable ‘go to’ organization within the economic development ecosystem.

EDANZ is at a crossroads, it cannot continue in its current form or offering. The future lies in becoming a valued
and strong ally of economic development practitioners throughout New Zealand.

The Board is passionate about economic development and making a difference to their communities. Help EDANZ
help you. As leaders within the profession support the changes and strategic direction that will benefit both the
profession and economic development agencies and organizations

13. RECOMMENDATIONS

It is recommended that the Board consider the following changes to the membership and services offered by
EDANZ at its upcoming workshop on the future of EDANZ:

• A broadening of the current membership criteria to include all economic development practitioners both
in the public and private sector

• Development of an ongoing, comprehensive and stepped series of professional development opportunities
(online and face to face) that would enable professional certification that is recognised and valued by
employers

• A jobs board that enables members to immediately identify job opportunities within ED around the
country

• Creation of networking opportunities both at a national and regional level
• Undertake an annual salary survey that enables nation-wide benchmarking of salaries and conditions
• Provide the latest news and events within ED around the country and beyond
• Demonstrate tangible commitment to a set of professional standards by establishment of an ethics code

for members
• Provide members with the opportunity to have input into EDANZ submissions on matters of national

16

importance to economic development
• Stage an annual conference with a bespoke designed stream of seminars that reflects the issues and

development of individual practitioners
• Provide regular updates to members via
• Share best practice
• Develop a Policy and Research Advisory Committee that could guide a new policy and research portfolio
• Undertake a review of its branding and name in keeping with its broader membership framework

• Commit to a three-year strategic plan which sets an agreed direction for EDANZ.
• Notes the indicative three-year budget attached
• Call for a three-year transformational plan and detailed budget in light of those changes accepted at the

workshop
• Agree to a launch of the changes at a) the EDANZ Conference and b) an RTONZ membership meeting in

Auckland in September.
• Approve progression of an MOU with RTONZ that would see encourage greater collaboration

14. DETAIL OF PROPOSAL

What follows is a high level of detail as to how EDANZ might deliver the proposed new services. The detail is
drawn from my experience in introducing the same services in other national organizations.

14.1 PROFESSIONAL DEVELOPMENT

It is proposed that the professional development program be developed in the following way:

◦ All individual members be offered the opportunity to participate in a training needs analysis. Prepared by
EDANZ the analysis would seek to capture both for EDANZ and the individual the areas of training that
individuals identified as gaps or opportunities for professional development in their day to day work. The
training needs survey would step individual members through a series of questions that cover all skills and
understanding typically required across all economic development activities, including marketing and
destination management skills. For example, the survey would include questions that encourage individuals to
consider their strengths / needs in the following:

◦ Inward investment attraction
◦ Talent attraction

◦ Economic development 101, 201 and 301 for elected members
◦ Attracting funding
◦ Capturing the power of local ‘creatives’
◦ Creating the local story
◦ Affordable Housing models
◦ Understanding the role of Monitoring and Evaluation as a bulwark to political interference

17

▪ Creating alignment through effective collaboration
▪ The theoretical underpinning of economic development in the 21 Century
▪ Engaging with Maori
▪ Product development
◦ Shaping the organizational culture from wherever you sit
◦ Managing the media through effective written and verbal communication
◦ Managing the politics
◦ Financial management
◦ Human Resources management
◦ Health and Safety Law
◦ Information technology

The above is far from a complete list but it serves to give the reader a flavour of what might be asked within the
survey whilst individuals will be encouraged to identify any skill not listed.

The individual survey results would be available to individuals, the collated survey results would be available to
EDANZ. The collated survey results would then form the basis of a structured program professional development
offering.

RTONZ would at this point be consulted on how EDANZ and RTONZ might work together to offer a strong PD
program. That structured program would most likely be split into two streams of skills ie. economic development
and organizational skills. Each stream would be offered at a 101, 201 and 301 level. Alongside the core menu of
courses would be a menu of ‘pop up’ courses that focussed on issues that popped up during the
course of the year as a result of various catalysts including but not limited to, rapid changes to the economy,
government initiatives such as funding streams and legislative change, or indeed it might be that EDANZ has
invited an international guest to NZ that members would value hearing from. This pop – up menu would ensure
that the entire program maintains its currency.

Individual members would be expected to undertake 20 hours of professional development per annum with the
aim of achieving certification within three years of registration. Those hours must include a number of ‘core’
courses considered by EDANZ to be fundamental to an effective contribution to economic development and
other courses that the individual selects based on their particular interest/role.

Following the achievement of registration individual members would be expected to explore other aspects of the
professional development program at will and continue commitment to 20 hours of professional development per
annum (those hours could come in the form of attendance at the EDANZ conference).

Each course that EDANZ chooses to offer would be based on best practice within and beyond NZ and be delivered
by an expert in that field.

The courses would typically be a day or at most two days long for some of the more senior classes. Most courses
would initially be offered as face to face in the main centers of population but increasingly the courses would be
filmed and offered online in later years.

Timing and Financial Impact of Professional Development Programme

It is proposed that the professional development program be designed in 2018 and offered as a year-long menu
which members can book in January 2019.

The costs of each day long course to EDANZ would be around $2000 plus venue and catering. The costs of each
course for participants would cover those costs and provide EDANZ with a modest surplus. Courses that failed to
attract sufficient numbers to at least break even would be cancelled within two weeks of the date of the course.

18

It is proposed that a contractor with previous experience in delivering a professional development program be
engaged to deliver the program once it has been designed i.e. engage speakers, book venues, catering, publish
using booking system on EDANZ website. This has been provided for in the three- year indicative budget.

Here is an example of the professional development program that I personally designed in 2014 and is still being
used by NZPI to help a stronger understanding of what is proposed. It yields around $130,000 surplus per annum
for NZPI.

14.2 The Jobs Board

The EDANZ website would include a jobs board. The board would advertise economic development related jobs
throughout NZ and beyond.

It would allow advertisers to load their job online themselves and also pay for that advertisement online, once
registered. The job would automatically expire after one month. In short, this is a totally automated process with
no great resource requirement from EDANZ other than the initial establishment of the technology and ongoing
promotion of the product to advertisers.

Individuals would also need to register to the Jobs Board and in doing so would be able to load their CV’s on site in
a manner that allowed registered employers only to access. I am able to build the above technology into the
EDANZ website at a cost of $1000 for the required applications and any technical support required.

The rack rate for advertisers would be developed in 2017 and would likely be around $200 - $300 per
advertisement. Corporate members could be offered a discount. Yes, this is more expensive than SEEK but we are
delivering an absolute target audience to advertisers and that is highly valued by advertisers such as Haines who
are more interested in a targeted approach than the scatter gun approach offered by SEEK. T

Timing and Financial Impact of the Jobs Board

After the initial outlay of $1000 for technology the Jobs Board is self-sustaining and should yield an annual profit
that increases from year to year as word gets out to advertisers.

From previous experience in developing this product I can advise that the surplus from such an endeavour can
reach beyond $100,000 per annum. The technology could be in place for such a product by the end of 2017 with
promotion underway early in the New Year. An estimated profit from the Jobs Board for the first year
would be approximately $15,000.

Whilst NZPI has yet to update its technology, this link will give you an overview of a jobs board function. It is a
site that we own.

14.3 NETWORKING OPPORTUNITIES

It is proposed that EDANZ consider a regional ‘Branch’ structure for corporates and individuals. A branch
structure would simply encourage organizations and individual practitioners within each of the 14 regions to
create opportunities for informal networking within their respective regions. Each branch would have a local
database of members to enable regional communication and the establishment of regional events.

The regional events may address regional issues, coordinate the regional contribution to a national issue that
EDANZ is working on, or simply be a networking opportunity. Please note that local networking would not
contribute to the individuals Professional Development hours.

Those regional events may or may not involve costs for venue or catering. All costs would be covered by a small
fee to attendees. In short, there is no cost to be borne by EDANZ.

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14.4 AN ANNUAL SALARY SURVEY

The salary survey would be constructed to deliver the following information:

• The median salary range for a number of ED roles across all respondents
• The median salary range for a number of ED roles as evidenced by respondents within the public
• The median salary range for a number of ED roles as evidenced by respondents within the private

sector
• The median value of benefits for roles ED roles as evidenced by respondents within private sector
• The median value of benefits for roles ED roles as evidenced by respondents within public sector
• The median value of salary and benefits for men vis a vis women
• The median value of salary and benefits between regions
• The median value of salary and benefits between years of experience
• Eventually we could add the median value of salary and benefits between certified and non-

certified members of EDANZ.

The salary survey would be designed and distributed in March of each year. The results would be available to all
members (corporate and individuals) in June/July of each year.

Here is an example of the one that I developed and personally analyzed annually from 2011 onwards. Please note
that non-members would be required to pay for a copy of the survey. The salary survey is without cost to EDANZ
although it would be great if we could identify a ‘sponsor’ for the product i.e. a research company that currently
operates in the ED space. This product could be offered in 2020 and there may be an opportunity to ‘piggy back’
off the IEDC survey.

14.5 A CODE OF ETHICS

Individual membership of EDANZ would entail a written commitment to a code of ethics.

The code would outline the responsibilities of the individual, including meeting professional development
obligations. the penalties for breaching the code and the process for determining whether the code had indeed
been broken or not. Such a code could be in place in late 2018.

14.6 THE OPPORTUNITY TO CONTRIBUTE TO EDANZ POLICY AND RESEARCH ACTIVITIES

It is proposed that EDANZ develop an engagement process that allows individual and corporate members input
into the identification of issues of national import requiring national research and ensuing submissions.

The engagement process would also identify how all members would be given the opportunity to contribute to the
content /shape of that research and ensuing submissions.

From that engagement process the CEO’s of the RDA’s would form an advisory group and would be invited to
design and adopt a five-year primary research program that is strongly evidence based and data led and adds value
to the work of our members. The advisory group would be at the cutting edge of thought leadership around ED
issues throughout the country. This could be developed in collaboration with our partners and /or an agreed
research entity. It would also be of value to such a program if we were to reinvigorate the link between IEDC and
EDANZ.

TIMING AND FINANCIAL IMPACT

EDANZ could potentially establish and offer research services beyond those identified, at a cost as it evolves but for
now it is recommended that it uses in house services to develop the five-year program and commence

20

implementation in late 2018.

A budget for this work stream would be developed and advanced to the Board for consideration along with the
five-year program. For now, an indicative budget for support of this group has been included in the draft budget
(section 16)

14.7 ONLINE, UP TO DATE INTERNATIONAL AND NATIONAL NEWS SERVICE

The online news service is already in place given the demand for it and how little it cost to put in place. The initial
outlay was $1000. There are no ongoing costs. It requires no human resources since it is automated. It can be
seen under the ‘news’ menu on the EDANZ website.

14.8 SHARING OF BEST PRACTICE

It is suggested that there be a new menu added to the EDANZ website and that it incorporate:

• the projects that win an EDANZ awards each year
• best practice papers submitted and accepted for the annual conference

14.9 AWARDS

EDANZ has already taken the decision to introduce annual awards.

14.10 MEMBERSHIP FRAMEWORK

It is proposed that the detail of the membership framework and an implementation plan be provided to the
next meeting of the Board.

15. RESULTS OF MEMBER SURVEY

In 2016 the Board called for a paper that provided options for the future of EDANZ.

In a bid to ensure that the future direction of EDANZ has been driven by member needs EDANZ launched a survey
of all members in March 2017. The survey was deceptively simple and ostensibly designed to achieve two sets of
data:

a) how valued were current services offered by EDANZ, and
b) what other services of value to members might EDANZ offer in the future.

The survey has now closed and both data sets have been used to inform the ‘Future Options Paper’ requested by
the Board. The following analysis of the data is offered in support of the direction recommended within the
options paper.

1. Demographics of Respondents
The survey received just 30 responses but as the data below reveals, those responses are truly indicative of
what services members do and do not value.

Governance Models
Of those who responded,

• 38% were members’ RDA’s
• 31% were members’ of EDA’s

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• 3% were members’ of RTO’s
• 27% were members’ of a mix of local and regional government, plus one Charitable Trust

Role of Respondents
Of those who responded,

• 57% were Executives (CEO or GM)
• 13% were practitioners
• 3% were policy advisors
• 7% were project managers
• 3% were administrators
• 17% were a mix of strategic advisors and program managers

Annual Turnover
The following questions were posed to CEO’s only to eliminate duplication.
The CEO’s of each organization only were asked to advise of annual turnover for the year end
2016. Of the CEO’s who responded, the collective annual turnover in 2016 was in excess of
$165 million.

Establishment Numbers
CEO’s only were asked to provide FTE staffing numbers for their respective organization. Of
the CEO’s who responded, the collective establishment numbers were 608.

The above responses serve to provide a level of comfort that the following survey responses are representative of
the views of leaders within the economic development profession.

2. What did members value:

Current Services
Respondents were asked to value a list of current services offered by EDANZ on a scale of 1 to 5 with 5 being
the most valued. The weighted average of all responses received are detailed below:

• Networking via national conference – 2.8
• Latest news and growth of ED profile – 2.8
• Resources such as M & E – 2.7
• Advocacy – 2.6
• Submissions – 2.6

Future Potential Services
Respondents were next asked to prioritise in order of importance/value to their work on a scale of 1 – 10 with
1 being the most important /valued service.

The scores were as follows, in order of how they were valued:
• Professional development – 7.76
• Sharing of Best Practice through EDANZ website – 7.17
• Research into economic development issues at a national level – 7.14
• More networking opportunities – 6.00
• Latest news in ED from around the globe – 5.72
• Certification for ED practitioners – 5.0
• National Awards – 4.59
• Salary Survey – 4.21
• Events Calendar 4.14
• Jobs Board – 3.21

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The next question asked how likely respondents were to use the potential services. The scores were as follows
in order of how likely the service was to be used.

• Research into economic development issues at a national level – 8.0
• Sharing of Best Practice through EDANZ website – 7.03
• Professional development – 6.93
• Latest news in ED from around the globe – 6.31
• More networking opportunities – 6.17
• Events Calendar – 5.14
• Certification – 4.34
• Salary Survey – 3.97
• National Awards – 3.76
• Jobs Board – 3.34

3. Individual Comments:
The final question was a ‘catch-all’ asking ‘what do you think is the greatest opportunity for EDANZ going
forward’.

The following responses were received:

becoming more virtual - webinars, web meetings, groups

a focus on small towns. local tourism opportunities and small town regeneration, business attraction and
investment attraction for practitioners.

helping elected small town members to actually get what economic development actually is..

Move NZ into a leadership position re economic development - keep ahead of what is happening globally and
sharing, driving and facilitating members to use this information, expertise and data.

Re-connect the community of economic development practitioners and get some some conversations
flowing/info sharing going again between them

Networking and best practice

Providing national data broken down to a TLA level.

Research and access to international research on the opportunities for regional development, particularly for
regions with declining and ageing populations.

Ensuring alignment and avoid duplication of RTONZ, especially considering some RTOs are stand-alone and
not part of EDAs.

To become "Economic Development New Zealand" by adding focus on individuals and a broader range of
actors than EDAs. See separate email for my thoughts.

Cohesive collaboration across New Zealand, examples of best practice and reasons why they succeed.

Creating on going contact/communication with those working in Economic development that did not
understand or know about EDANZ

share case studies to encourage best practice and also showing what doesn't work and why

23

Sharing benchmarking e.g. salaries, projects, but also grants from Councils (what is the avg % Councils give
EDA's and DTO/RTO's and helping identify other sources of funding for projects

Bring everyone together to create a consistent and strong coherence to the industry across the country to start
international connectivity opportunities

More regional collaboration

to ensure the regions are heard at a National level

Advocacy being a voice for EDA's.

It needs to expand - bring smaller EDA's on board to meet on a quarterly basis over 1 day. Drop the 14 region
board structure meeting quarterly and instead adopt a board of five individuals to manage governance matters
along with a secretariat.

Provide a credible vehicle through which the ED community can speak with one voice on issues of national
significance.

To become truly relevant, EDANZ has flown under the radar for a long time. As the importance of regional
economic development gains pace, the opportunity is to form an accord with RTONZ and create something
that truly delvers for it's members and which becomes a voice for the regions as national level policy on
economic development is developed and implemented. At the moment, EDANZ does not get recognised
sufficiently by government decision makers as a major player in ED. As RTOs and EDAs merge, there is the
opportunity to change that situation.

EDANZ communications to someone at my level does not filter through. I do not know what EDANZ is doing
and what value they currently provide. So more direct communications would be beneficial. I also feel that
EDANZ should work closely with RTONZ given the new trend of RTOs and EDAs combining. The two functions
still seem very separate and very little in this survey actually references RTO function, which is a huge
oversight given the fact that many have or are in the process of combining. I feel RTONZ have got it right.
There's weekly communications, beneficial events organized for members (ie: RTONZ IBO event and TNZ
Mega Meet), also RTONZ are very good advocates and is available to answer questions and to provide regional
comparisons when needed. They also provide RTO benchmark survey which is a good way to compare regions.

Recognize individuals in the economic development field. I don't feel like I'm part of EDANZ its removed from
my daily life working in Economic/Regional Development. Enable regional bodies to be established to improve
networks and outcomes for economic development at a regional level and in a social way. Look at ways that
the knowledge and expertise of the profession can share to the next generation and the other way around.
Make the profession interesting as a profession and ensure that the skills of the next generation meet the
needs of the profession which is changing with technology and the 'ways' business is being done.

Bring together CEOs of the biggest urban areas to go to central government with a single 'voice' on areas of
interest

Powering up RDAs and re-focussing on professional development

do whatever it does really well. the connectivity with Government is priority - add real value

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4. Analysis of CEO responses

Given the import of responses from CEO’s I have taken the time to provide a snapshot of their collective responses
below in comparison with all responses received

Current Services Valued - Averaged

Networking Advocacy Submissions Resources Latest
News

All respondents 2.8 2.8 2.7 2.6 2.6
CEO’s
2.9 2.6 2.6 3.0 3.2

Future Services Valued - Averaged

PD Awards Networking Research Jobs Salary Certification Events BP Latest

Board Survey calendar sharing EDA

News

All 7.76 4.59 6.0 7.14 3.21 4.21 4.34 4.14 7.17 5.72

CEO’s 8.2 5.6 6.7 8.7 4.0 4.5 3.8 3.8 7.3 7.3

It seems that CEO’s value the following services more highly than all respondents:
• Professional Development
• Awards
• Networking
• Research
• Jobs Board
• Salary Survey
• Best practice sharing
• Latest EDA News

5. Conclusion:

There appears to be a little difference as expected between those services valued depending on the role of the
respondent (as one would expect) overall however there appears to be a measurable appetite for the following
services:

• Professional Development
• National Research
• Sharing of Best Practice
• The Latest ED news
• More networking opportunities
• Awards

25

16. INDICATIVE THREE YEAR BUDGET TO SUPPORT CHANGE

2016/2017 2017/2018 2018/2019 2019/2020
Likely E o Y
Result

Income 1400 1500 2000 2500
Interest 28000 50000 90000 100000
Subscriptions 16000 130000 130000 140000
Conference 30000 60000 80,000
CPD 15000 40000
Jobs Board 60000

Total Income 45400 226,500 322,000 382,500
Expenditure
Advertising 5000 0 0 0
Accounting 4500 4500 4500 4500
Audit 2000 2000 2000
Awards 200 2000 2000 2000
Bank 2000 1000 2000 1000
Conference 85000 110000 120000
Executive Support 200 88,000 95,000 110,000
Entertainment 8000 1000 1000 1000
General 4000 1000 1000 1000
Insurance 2000 2000 2000
Meeting /Travel costs 400 2000 2000 2000
Telephone/Internet 500
PD – co-ordinator 1500 0 0 0
Jobs Board 2000 0 52,000 54,000
World News 1,500
Booking Function 0 1,000 0 0
Policy and Research Advisory Group 1,000 0 0
Rebranding 28,300 3,000 0 0
Membership drive co-ordinator 17,100 2000 3,000 3000
Total Expenditure 30000 0 0
Surplus/(Deficit) before tax 222,000 35000 40,000
6,500 311,500 344,000
10,500 38,500

26

17. HUMAN RESOURCE PLAN

The raft of changes and budget proposed reflect a need for an increase in human resources. The matrix below
shows the role descriptions for all three positions, two of which are proposed as contract positions.

Executive-Director - a full time Membership Drive Co-ordinator Professional Development Co-ordinator –
permanent or contract position Contract and part time – core plus Contract and part time – core plus bonus
bonus for exceeding budgeted for exceeding budgeted surplus
Responsible for the following: surplus
• Support of Board via Responsible for the following: Responsible for the following:
minutes/agendas Development of membership drive Development of contracts for all presenters
• Finance i.e. invoicing, reports, strategy for Board’s consideration
budgeting and Audit Identification of presenters
• Insurance of EDANZ Development of data base
• Drafting of Annual Plan and Development of marketing collateral Publishing courses online
Annual Report Implementation of membership Booking and contracts relating to
• Salary Survey design and strategy venues/catering
analysis Answering all enquiries relating to PD
• Jobs Board
Keeping track of PD undertaken by each
• Conference delivery individual involved in the certification
• Securing sponsorship process
• Measuring satisfaction Developing feedback survey of all participants
and collating results for Board consumption
• Maintaining currency of EDANZ
website Providing participants with all materials
required
• Regular e.newsletter and comms Securing a sponsor for the PD program
with members and partners

• Design of PD program

• Drafting of constitutional change

• Administrative support of Policy
and Research Advisory Group

• Rebranding and profile

• Drafting of media releases

• Conflict of interest registry

• Award nominations and process

• Engagement and management of
contractors

• Supporting Board in
development of strategic plan

27

The future of EDANZ is in your
hands

28


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