Contents
- 1 The Role of Strategic Plans in Economic Development
- 2 Step 1: Assess Your Community’s Strengths and Needs
- 3 Step 2: Cultivate an Environment for Strategic Economic Development by Assembling a Team
- 4 Step 3: Craft a Clear, Actionable Plan with Performance Measures
- 5 Step 4: Put Your Economic Development Plan into Action
- 6 Step 5: Keep the Plan Alive with Regular Updates
- 7 ↓ Get the guide ↓
Economic development plans are essential for sustainable growth, job creation, and a thriving community. Without a plan, communities are forced to react to external economic forces rather than proactively shape their future. Having a strategic roadmap ensures that economic growth is intentional, measured, and community-focused.
- A strong economic development plan considers:
- Population trends (growth or decline)
- Economic shifts (booms or stagnation)
- Workforce development and job creation
- Public-private investment opportunities
- Land use and sustainable housing growth
- Arts, culture, and community amenities (don’t underestimate what this can contribute!)But where do you actually start? And what makes an economic development plan actionable? Perhaps most importantly–how can you ensure your plan doesn’t just sit on a shelf gathering dust?
Let’s break it down.
The Role of Strategic Plans in Economic Development
A robust economic development strategy integrates a region’s unique assets, addresses challenges, and sets a long-term vision. It requires leveraging tools that will help to deliver projects on budget and on time (like Envisio Projects), and having a firm understanding of your community and your key collaborators. Through a structured approach, a local government can effectively align resources, partnerships, and policies to create sustained economic impact.
Step 1: Assess Your Community’s Strengths and Needs
Strategic economic development planning is a continuous process, often reviewed annually and updated every 3-5 years to keep up with shifting economic landscapes. If your community doesn’t have a formal plan—or if your current plan is outdated—now’s the time to take action.
Before formal planning begins, initiate informal discussions with key contributors. These conversations help with assessing the local economic landscape, build support, and lay the groundwork for assembling a project team (see step 2).
These early conversations provide:
- Buy-in from key decision-makers to ensure long-term success.
- Insights into community perceptions of local economic development.
- An opportunity to recruit team members for the planning process.
Key Actions:
- Clarify the “why” – Develop a concise statement on why a strategic economic development plan is both timely and necessary.
- Engage key players – Hold informal discussions with local government, business leaders, and community organizations.
- Gather insights – Gather data, identify challenges, opportunities, and diverse perspectives on economic priorities.Understanding the data around your demographics, employment, and infrastructure is an important step in honestly assessing your community’s current economic state, its assets, and its challenges.A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is a common tool at this step, but there are other strategic planning models and exercises you might use. For example, it is common for higher education institutions to use scenario planning.
Example: Denton, Texas
Faced with a rapidly changing economic landscape and the impacts of the COVID-19 pandemic, Denton undertook a strategic economic development planning process. Through wide-ranging engagement (including an Economic Development Partnership Board, extensive consultations with City Council, as well as businesses, educators, and residents), data collection (including Business Retention and Expansion visits and surveys), and a SWOT analysis, the Denton team was able to understand and identify the right focus areas for their community.
The City of Denton’s core strengths were identified as entrepreneurial spirit and cultural vitality.
They also identified their weaknesses, as having limited resources dedicated to economic development compared to surrounding communities.
Opportunities included planned developments like Cole and Hunter Ranch.
The identified threats were largely around economic fallout from the COVID-19 pandemic.
Staff at the city recognized the need to modernize their approach and address resource limitations.
Unlike a simple “more jobs” approach, Denton’s plan focuses on targeted strategies aligned with its guiding principles: core resiliency, future-focused, inclusive growth, entrepreneurial spirit, cultural vitality, connectivity, creativity, sustainability, competitiveness.
Step 2: Cultivate an Environment for Strategic Economic Development by Assembling a Team
Economic development is about creating an ecosystem that supports residents, businesses, and infrastructure for long-term success.
Whether your community is experiencing rapid growth, economic stagnation, or workforce retention challenges, a well-crafted plan provides a blueprint for sustainable prosperity.
But how do you create an ecosystem that supports residents, businesses, and others? Well, you don’t do it alone!
You’ll need a team of key people who bring diverse perspectives and expertise to the table. Think of it as assembling an all-star lineup.
Key players might include:
- Local government representatives (council members, economic development staff)
- Business leaders and entrepreneurs with insight into industry trends
- Community organizations that support workforce and economic growth; it is a good idea to include both business administrations and organizations that work with disadvantaged groups
- Educators and workforce development professionals who understand labor needs
- Regional and state economic development agencies, to ensure broader policy alignment
- Consider also professionals who understand how grants and partnerships work—look to non profits for resources on this
Key Actions:
- Establish roles and responsibilities – Define each team member’s role in the process of the strategic economic development plan. Assign responsibility for specific research, outreach, or coordination efforts.
- Develop an action-oriented approach – Identify “quick start” initiatives—short-term actions that demonstrate momentum; this is important, particularly because this will make it easier to facilitate buy-in with elected officials or other regional partnerships.
- Outline longer-term projects – Looking to the future will help with the overall vision and direction of your plan. Looking at long term projects will also help in responding quickly to funding opportunities as they arise.
A well-structured team is essential for turning ideas into action.
Example: Corinth, Texas
Corinth has taken a strategic approach to economic development by assembling key players across departments and regional partnerships. Their Vision 2030 plan, built on values of accountability, transparency, and a resident-focused approach, prioritizes projects that enhance quality of life and economic vitality.
A strong example of this is their Commons at Agora capital improvement project. The city’s leadership team, including its reorganized Economic Development Department, has worked to ensure that this downtown gathering space balances long-term vision with immediate community benefits. By forming a regional development task force—the Lake Cities Coordinating Council (LC³)—Corinth has fostered collaboration across neighboring communities to strengthen shared services and economic initiatives.
Their dashboard highlights how long-term projects like Agora Commons will support Corinth’s vision while maximizing return on investment. Their plan for long-term, large-scale investments (e.g. their Commons) is made possible through their regional partnerships to enhance economic vitality.
The City of Corinth demonstrates the importance of a well-organized economic development team in turning strategic goals into tangible results.
Step 3: Craft a Clear, Actionable Plan with Performance Measures
Creating an actionable plan serves as the bridge between strategic vision and tangible outcomes.
This stage may involve developing a capital improvement plan (CIP) as an outline for long-term infrastructure investments (roads, utilities, parks, etc). Effective CIPs require careful planning, resource allocation, and, crucially, community engagement. They differ from strategic plans in their focus on specific projects and resource requirements, demanding strong interdepartmental collaboration.
Creating an actionable economic development plan demands careful attention to detail; balancing ambition with pragmatism. A well-structured plan aligns expectations, secures long-term commitment, and ensures accountability. At its core, the plan outline should be built on SMART goals—Specific, Measurable, Achievable, Resourced, and Time-bound—ensuring that objectives are clear and progress can be tracked.
The buy-in obtained earlier now plays a critical role in defining concrete initiatives, assigning responsibilities, and setting realistic timelines.
A strategic economic development action plan outline should be ambitious yet practical. Keep it simple and structured. The plan should be backed by thorough research, including economic and demographic data, market trends, and community input. It should also be flexible enough to adapt to unforeseen challenges and opportunities.
Key Actions
- Develop a concise, structured action plan – This will typically start out as a one-page document (although, we strongly recommend using a tool such as Envisio for translating the plan into a trackable, dynamically updated, “living” plan).
- Categorize actions – Determine which actions are one-time projects, recurring activities, or large-scale initiatives, like a CIP.
- Measure what matters – Define key performance indicators (KPIs) to measure success.
- Assign responsibilities and set realistic timelines – It is better to underpromise, than it is to overpromise.
- Budget, budget, budget – Make a case for why your priorities ought to be resourced by the budget.
Example: City of Corona, California
The City of Corona, California, offers a strong example of how a well-defined economic development action plan can drive results. Their 2021-2026 Strategic Plan established clear priority goals, outlined key actions, and created a framework to track and report progress. Their approach demonstrates the power of structured planning and accountability in local government.
Corona’s plan stands out as a good example of strategic economic development with regards to creating an action plan, because as we can see on their public dashboard, their plan translates broad strategic priorities—such as fostering a high-performing government and improving the sense of place—into concrete actions.
The city’s commitment to KPIs in areas like economic development, public works, and planning & development ensures that progress is measurable and publicly reported.
Step 4: Put Your Economic Development Plan into Action
A strategic plan without execution is just wishful thinking. Implementation is where the magic happens—where strategic vision transforms into real-world impact. For an economic development plan to succeed, it must move beyond policy documents and into actionable steps that generate measurable results.
Key Actions:
- Prioritize projects by categorizing them into short-, medium-, and long-term goals.
- Assign clear responsibilities and deadlines to ensure accountability and sustained momentum.
- Establish a funding strategy by identifying grants, partnerships, and budget allocations.
- Track progress with regular check-ins and updates, using public dashboards and internal reporting to maintain transparency and agility.
Quick-win initiatives, such as launching an annual economic development report card, creating a business directory, or holding business roundtables, help build early momentum. Meanwhile, long-term projects like new business district development, workforce training enhancements, or infrastructure investments drive sustained economic growth.
A well-executed strategic plan is both structured and adaptable. Regular progress reviews, public engagement, and technology-backed reporting tools—like Envisio—help local governments stay on track and demonstrate accountability to their communities.
Example: Frankfurt, Kentucky
Frankfort, Kentucky exemplifies step 4 by taking a structured, goal-driven approach to economic development.
The city has effectively prioritized economic development actions by focusing on key areas such as improving business conditions, making properties “pad ready” for development, and strengthening economic partnerships. Some of their specific actions include:
- Improving the business environment: By reviewing existing policies, streamlining departmental work plans, and strengthening long-standing business relationships, Frankfort has made it easier for businesses to thrive.
- Creating a unified vision for economic growth: City leaders established both short- and long-term goals to attract and retain businesses, using best practices and dedicated resources to drive success.
- Making available property development-ready: Regular meetings with partner entities help ensure that property infrastructure aligns with business needs, supporting long-term investment.
- Developing economic partnerships and community engagement: The city actively collaborates with state agencies, downtown businesses, and local organizations to build economic resilience while increasing resident participation in economic planning.
Frankfort’s structured yet flexible approach to implementation demonstrates the importance of continuous engagement, clear accountability, and strategic prioritization. By leveraging public-facing tools and regular progress tracking, they are ensuring that their economic development vision translates into tangible community benefits.
Step 5: Keep the Plan Alive with Regular Updates
The economy doesn’t stand still, and neither should your economic development plan. It needs to be a living document, agile enough to adapt to changing circumstances while still maintaining a clear focus on your community’s long-term vision.
This means regular reviews, updates informed by economic data and performance metrics, and, importantly, feedback from the community itself. This keeps your approach fresh, relevant, and ensures you maintain momentum.
Keeping a plan like this alive and active can be a challenge. It’s easy for even the best-laid plans to get bogged down in spreadsheets, scattered emails, and disconnected project management tools that lead to a lack of visibility. Using a technology partner can be helpful.
Key Actions:
- Consider getting a central hub – It’s important to have a place where you can consolidate all the elements of your economic development plan. Envisio offers a way to bring everything together – your strategic goals, the specific projects designed to achieve them, and the tracking of progress – all in one place. Envisio also helps to connect individual initiatives to the overall vision so everyone is working towards the same objectives.
- Communicate progress – External-facing dashboards and internal reports help connect the dots between individual initiatives and the bigger picture. Being transparent about performance ensures that all collaborators have visibility into progress and can make data-driven decisions as conditions change or obstacles arise.
A platform for tracking large economic development projects or a CIP (like the one above) is critical for keeping the plan alive.
Economic development is a long game. A strategy implementation and performance management platform provides a long-term view of capital investments, allowing communities to see how these projects will contribute to economic growth over time.
↓ Get the guide ↓
Strategic economic development planning is about taking tangible steps to make your vision a reality. With a clear plan, a committed team, and the right tools, your community can drive real economic growth and create a thriving environment for businesses and residents alike.
Ready to take your economic development planning to the next level? Download our guide on aligning your budget with your strategy, so you can ensure that what gets resourced really gets done.
Mary King
Mary King is a professional writer and researcher based in Toronto. She comes to Envisio with a Masters Degree, where she researched the relationship between the disappearance of urban public spaces, and high level decision-making processes in local governments.
For nearly a decade, Mary has worked as a community organizer, promoter, and supportive researcher in a variety of nonprofits and think-tanks, and her favorite area of focus was in connecting local artists with marginalized youth. Since 2017, her writings and research on policy, local governance, and its relationship to public art and public space has been presented at conferences internationally. She has also served as both a conference chair and lead facilitator on professional and academic conferences across Canada on how to better bridge academic research with local change-agents, policy makers, artists, and community members.
Envisio’s mission of excellence and trust in the public sector maps onto Mary's interest in local government and community mobilization. She loves working at Envisio because she cares about having well organized, strategic, and transparent public organizations and local governments. Mary is also a creative writer and musician and has been supported in her practice by the Canada Council for the Arts. Her stories can be found in literary journals across Canada.
