Eureka! I’ve Found the Secret Sauce of Economic Development
I’ve been in economic development and investment promotion across three decades and been fortunate to work with some of the very best teams around the world - I’m always looking for what makes a difference.
I’ve made a career out of being cynical and critical of the Invest in Anywheres, with their vanilla approaches to inward investment and regurgitation of stock phrases and meaningless claims. So it’s not very often that a Eureka moment stops me in my tracks.
My economic development epiphany came during a week-long tour of East Tennessee and it’s all about ‘the why’. Why do we do economic development? What drives us?
It’s usually about attracting new and better jobs; more companies and projects; greater levels of investment that benefit local communities and drive economic growth. But are you driven by cold numbers and aggregated metrics, or is your motivation more meaningful and personal?
Standing Up and Leaning In
Tennessee is known as the Volunteer State. It’s a nod to their history and continues to inspire residents to live a life of service. What began as ‘military service’ is now far wider and can be seen in all walks of life, especially in economic development.
I spent a few days in and around Knoxville, the state’s third largest city and home to the University of Tennessee (who’s nickname is also the Volunteers or the Vols). From the rural counties of the Smoky Mountains to the science parks and laboratories of Oak Ridge and Knoxville, there was an all-consuming pride of place. All places, be they workplaces; schools and colleges; communities and counties. A pride in all things Tennessee which was overwhelming and which lacked the cynicism you often find elsewhere.
This wasn’t a braggy pride either, it is a measured, humble and sincere one. It is a pride that inspires people to volunteer or as I heard a hundred times, “to stand up and lean in”. This service creates a collective spirit that forges genuinely collaborative partnerships which are nurtured by a warmth and friendliness.
Everywhere talks about the ‘triple helix’ partnership between government, business and academia, but nowhere have I found the depth of common belief and collaboration as evident as in Tennessee. There isn’t the same tension between public and private sector cultures that often blight economic development, instead there is a sense of genuine shared purpose and common goals ahead of political agendas, academic egos and pure profit.
During a visit to Milltek, the British automotive manufacturer from Derby who moved to Knoxville in 2022, I noticed a corner of the factory which had a pile of water bottles, toiletries and nappies. These had been dropped off by customers and suppliers as Milltek had volunteered to be a distribution hub to support survivors of the floods which had decimated rural communities in recent weeks. This wasn’t some top-down CSR program, it’s just volunteers stepping up and supporting people in need. Economic developers talk a lot about embedding investors in the local community and this was a perfect example.
Southern Hospitality
The Volunteer State has a culture of kindness, generosity and community spirit which is all part of what’s known as ‘Southern Hospitality’. It’s something you’ll find across America’s South and it has a particularly strong read across in economic development.
There's something special about the way people treat each other here. Southern hospitality is not a cliche or stereotype, it’s a way of life that is apparent wherever you go. It’s about making people feel at home, irrespective of who they are or where they come from. It’s no surprise that Tennessee has been chosen by more than 1,000 foreign companies as their home.
I came across a blog about Southern Hospitality which listed its key elements - all of which resonated in the economic development context - they are the key ingredients to the Secret Sauce of economic development!
- Art of Conversation and Storytelling
“One of the hallmarks of Southern hospitality is the ability to carry on a good conversation. People in East Tennessee love to talk, and they're great storytellers. But it's also about being a good listener. People take the time to really listen to what others have to say. They ask questions, show interest, and make others feel valued.”
Investment promotion requires a strong narrative, so it’s no coincidence that the people who give us those great storylines in country music, know how to talk about their place in an engaging and entertaining way.
- Respect and Politeness
“Southern hospitality is all about treating other people with respect and kindness. It means using "sir" and "ma'am" when addressing someone older than you, holding open doors for others, and saying "please" and "thank you." It's about being polite and courteous, even when you don't agree with someone. It's about showing consideration for others and their feelings. People go out of their way to make others feel comfortable and at ease.”
Whether it’s dealing with the more formal and hierarchical business cultures of investors from Japan, Korea and Germany; or the more laid back informal approach by British and Irish businesses; being polite, respectful and friendly is a cross-cultural super-strength.
- Gracious Hosting and Entertaining
“When someone comes to your home, it's important to make them feel welcome and comfortable. The goal is to make them feel like they're part of the family. But gracious hosting goes beyond just providing food and drink. It's about creating an atmosphere of warmth and hospitality.”
These are the crucial ingredients to all successful site visits, hosted events and fam tours. Beyond the numbers and the hard facts, it’s often those human touches that make all the difference when potential investors are shortlisting locations.
Of course these things are not unique to Tennessee or the Southern states of the U.S. They’re found in most countries if you know where to look. Lots of places are famed for their friendliness to visitors, think of Ireland, Canada or New Zealand. But what struck me above all else was the ubiquity of these shared values in the people I met - from the Governor, the University Chancellor and local mayors to student volunteers and the people who served me Appalachian cornbread and sweet tea on a porch in the foothills of the Smoky Mountains.
I’ve always told inward investment teams that the most important success factor is entirely within their control and costs nothing: it’s the way you respond, interact and engage with potential investors, key partners and your local communities.
Be More Dolly!
In Tennessee, the secret sauce isn’t created through staff training or customer service handbooks, it’s just how people are naturally. Happier, kinder and warmer people that care. As that most famous of Tennesseans, Dolly Parton, says:
“I was born with a happy heart. I’m always looking for things to be better... Smile!... it increases your face value... If you see someone without a smile today, give 'em yours."
We can all do with more kindness, respect and happiness in our lives!