It is crucial to understand these groups, as much rests on
their leverage and acceptance. It is the role of the project
team — sometimes with the objective support of consult-
ants — to deliver the facts to the internal and external par-
ties authorized to approve the project. It is the role of the
project team and the economic developers to separate fact
from fiction, communicate balanced messaging to those
concerned about the project’s impact, and to manage miti-
gation as appropriate.
The Decision Chain Evolves during
the Site Selection Process
The underlying process serves as the control point for
managing the decision chain and the changing roles of par-
ties during the project stages, as follows:
STRATEGY: During this stage, the key questions con-
cern project feasibility and rationalization. The decision
chain will most likely be internal to the company and confi-
dential to a core planning team. At this stage, it is critical to
clarify the vision of the project, develop a business case and
roadmap for further actions, and to clearly establish the
stakeholders who will be part of the decision and when they
should be involved. Overall clarity of leadership is essential.
SEARCH: As the process evolves into a feasible plan for
action, other parties may be brought into the decision chain
including consultants, other internal experts, and economic
development organizations. The stakeholders now need to
have a clear understanding of the command and communi-
cations structure. Information overload can be an issue dur-
ing this phase. Sorting through voluminous amounts of —
and often inconsistent — data is frustrating; having a tight
decision process to manage information, messaging, and the
expansion of the decision chain is essential. Many project
teams go off-track by letting the information at hand take
charge of the decision, or by becoming too focused on spe-
cific factors, such as incentives or particular sites.
SELECTION: This is a logical point to selectively
expand the decision chain. Sound location selection practice
includes thorough investigation to identify “fatal flaws” and
evaluate the fit of a location with respect to labor market,
operating climate, site/infrastructure, cost, and other factors
deemed important to the project. Sources of evidence are
essential. This is also the right time for the project team to
position the project with community leaders relative to
incentives and other support.
Limits are usually placed on information sharing to pro-
tect project and client confidentiality. This is perhaps the
most critical time to manage the decision chain so it does
not unintentionally expand to additional parties, such as the
media, competitors and others who could potentially com-
promise the delicate nature of the decision-making process.
IMPLEMENTATION: Once the decision becomes
clear, other parties enter the process. These might include
relocating employees and business parties who will potentially
be impacted by the decision. Some may have been woven in
earlier and, at least, their interests should have been consid-
ered in evaluating the alternatives. Third-party project deliv-
ery providers are also essential at this stage, including the
design/build team, equipment and transportation providers,
attorneys for finalizing property transactions, residential relo-
cation companies, outsourcers, and local resources for
recruiting and training. Other internal corporate parties may
become more involved as well, relative to changes in business
operations, new processes, and enhanced market access. This
is also the time, perhaps starting with a formal announce-
ment, to communicate the project benefits and form long-
term relationships with the community at large.
In Sum
Perhaps the most crucial message is to account for the eventual role and potential impact of each and all of these groups
and how and when they fit into the decision…EARLY in the
process. This brings this discussion full circle back to the first
stage of having a program decision roadmap that logically
considers the “what ifs” of the decision tree and the variability of the players in the decision. This is essential to effectively planning project implementation and to a successful
long-term location decision..
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Lawrence Moretti has over 25 years experience consulting with
corporate end-users, economic development groups, and other parties
to global business geography deployment decisions.