Performance Measurement
is EDA Priority

The Economic Development Administration (EDA) is developing performance measures for use by its investment partners, including economic development districts.

Recently, NADO Legislative Representative Laura Marshall talked with EDA Senior Adviser Danette Rich about the performance measures initiative and its impact on economic development districts.

Marshall: What are performance measures?

Rich: A performance measure is “a quantifiable indicator of public and customer benefits from an agency’s actions.” These measures focus on “outcomes” rather than “outputs.” For example, when a district offers a job-training course after an economic disaster, it is more valuable to know how many students obtained employment rather than how many completed the course. Job placement is an outcome, while training them is an output.

EDA will have three major performance measure components:

• Establishing performance outcomes;

• Data collection; and

• Performance monitoring.

As a district completes these steps, valuable data will emerge to help refine the measures and adjust activities to achieve better performance.

Marshall: What performance measures are currently in place?

Rich: The Office of Management and Budget required EDA to submit performance measures for FY 2003 before November 15, 2001. EDA examined the system of measurement in place under the Government Performance and Results Act (GPRA). Since most of those measures focused on internal processes rather than outcomes, EDA focused on two important agency-wide goals and will use only a few performance measures for districts in FY 2003.

During FY 2002, the first goal is promoting private enterprise and job creation in economically distressed communities. EDA believes that actions can be measured by examining the amount of private sector dollars invested in distressed communities; jobs created or retained in distressed communities as a result of EDA investments; the amount of state and local dollars invested along with EDA dollars; The percentage of EDA investments in areas of highest distress; and The dollars invested in technology-related projects in distressed areas.

The second goal for districts in FY 2002 is building community capacity to achieve and sustain economic growth. EDA sees the Comprehensive Economic Development Strategy (CEDS) process as one of the best avenues for improving local capacity. Periodically, EDA will measure the percentage of projects implemented from their CEDS and also will measure how many of those projects lead to private investments and jobs.

Performance measures:

• The percentage of sub-state jurisdiction members actively participating in the Economic Development District program; and

• The percentage of EDA investments in areas of highest distress.

Marshall: How will the performance measurement system evolve?

Rich: EDA will refine the FY 2002 performance measurement system for FY 2003 and beyond by working with regional staff and district representatives to establish realistic measures. EDA will convene a small roundtable to discuss agency goals and refine the measurement system for FY 2004 and beyond, and publish the results in late Feberurary 2002.

EDA’s New Investment Policy Guidelines Assistant Secretary of Commerce for Economic Development, David Sampson, has established the following criteria (a.k.a. “The Sampson Seven”) for evaluating proposed EDA investments: Market-based. Proactive in nature and scope. Look beyond the immediate economic horizon, anticipate economic changes, and diversify the local and regional economy. Maximize the attraction of private sector investment and would not otherwise come to fruition absent EDA's investment. Have a high probability of success. Result in an environment where high skill, high wage jobs are created. Maximize Return on Taxpayer Investment.