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Industry Partnerships and Strategic Planning

Purpose without action is a daydream; action without purpose is a nightmare.

– Anonymous

A cluster-based approach to thinking about economic and workforce development has become increasingly popular since the late 1990s.  Industry clusters — networks of geographically concentrated firms and the infrastructure that supports them — bring the private, public, and quasi-public sectors together to catalyze action at the international, national, state, and local scales[1]. 

The concept behind this approach is that the whole is greater than the sum of its parts — that regions and individual firms can capitalize on their competitive advantage when companies that usually are competitors create collaborative solutions to common problems and collectively drive policy decisions and economic growth.  Successful industry clusters are guided by a strong purpose and create and measure change.  The functions of successful industry clusters are threefold[2]:

1.      Understanding and benchmarking a regional economy

2.      Gathering key industry stakeholders together to address specific issues

3.      Providing high-value, specialized services to key industries

Strategic planning, usually reserved for individual firms or organizations, can be an invaluable tool in creating the vision of an industry cluster and focusing its and the region’s resources to have maximum impact.  Both the strategic planning process and the document itself provide benefits to the industry cluster.

The strategic planning process builds the required social capital among competitive firms necessary for success and provides the opportunity for partnership members to objectively analyze their situation and formulate appropriate strategies.  The strategic plan itself provides the roadmap for the industry partnership to implement its strategy.

One example of a successful industry cluster strategic planning process is the South Central Workforce Investment Board’s (SCWIB) 2005 healthcare industry planning process.  The Hill Group facilitated the SCWIB Healthcare Regional Steering Committee’s strategic planning process by soliciting input from key stakeholders including the SCWIB and CareerLink staff, health care providers, and educational institutions.  The plan outlines goals, objectives, and measures for each of the strategic areas identified through the process including examining the region's educational system capacity and developing and retaining the incumbent health care workforce.

The strategic plan provides the Steering Committee and the industry partnership with focus, direction, and a framework to produce tangible results in the areas identified including:

  • Providing training for 760 front line supervisors representing 110 employers with incumbent worker training funds

  • Creating four geographically-based sub-consortia to implement the initiatives of the strategic plan at the local scale  

  • Developing a regional education team of five colleges and universities that collectively work to meet the training and education needs of area employers

  • Providing a first-ever coordinated outreach to high school students and prospective employees during Health Careers Awareness Week 

  • Encouraging competing organizations and individuals to leverage their strengths to collectively improve the region's healthcare workforce

To learn more about industry partnerships strategic planning processes, please contact our consultant specializing in workforce and economic development initiatives, Kelly L. Glass.  Kelly can be reached at 412.722.1111 or via email at kglass@hillgroupinc.com.



[1] Porter, Michael. (2000). Location, Competition, and Economic Development: Local Clusters in a Global Economy.  Economic Development Quarterly.  14(1), p. 15-34.

Morgan, Jonathan. (2004). Clusters and Competitive Advantage: Finding a Niche in the New Economy. Popular Government. Spring/Summer, p. 43-54.

[2] Waits, Mary Jo. (2000). The Added Value of the Industry Cluster Approach to Economic Analysis, Strategy Development, and Service Delivery. Economic Development Quarterly. 14(1), p. 35-50.

 
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