Hiring the top dogs in economic development

There are a number of top positions available or coming available in Atlantic Canada after the Nova Scotia shakeup/reorganization and the coming departure of ONB’s current CEO.

These are very strategic roles within government (or quasi-government) and the occupants tend to stick around for a number of years so it is very important to get it right.

So, based on my 30 years of research into effective economic development organizations, here are a few of my thoughts - if I was being consulted on the ideal candidates for these economic development CEO roles.

#1 Resist the temptation to hire a ‘former VP of Fortune 1000 company x”. I have seen this done in many larger communities/jurisdictions and can be really hit and miss. The idea is to bring in someone with private sector experience at the highest level but it’s not clear a) these folks can work within the strictures of government or b) they understand how a provincial economic development organization can truly influence economic growth. I’m not saying rule out the ‘former VP of Fortune 1000 company x” but be very careful. A lot of times these guys/gals will view the government job as a pre-retirement gig - an easy, government job with no real accountability.

#2 Previous economic development experience should be either a must have or something close to must have. To an executive looking at the job, it looks easy from the outside but as I say above it is critical they understand how a provincial economic development organization can truly influence economic growth. Without any experience doing it, they would be on a steep learning curve. One example from Ontario where a former VP from a tech company was hired into an economic development CEO position and basically turned the shop into a high level marketing agency - brochures, pitch decks, videos, etc. In 2022 Atlantic Canada, that would not be acceptable.

#3 The new CEO must understand the 2022-2030 context. This is not 2000 and it certainly is not 1990. The most successful jurisdictions moving forward will be those that have the strongest talent pipeline (local, national and international - aligned with growth opportunities). The challenge is these new CEOs need to be able to walk and chew gum at the same time. In addition to playing a significant role in the development of the talent pipeline (either directly such as ONB’s immigration team or indirectly by working with all key partners to build a top talent pipeline); we still need export-focused growth industries. If you look at New Brunswick’s lost decade between 2007-2016 (ish) there was a decline in both exports (interprovincial and international) and business investment. The new CEO must have a clear vision for the role that government and other partners can play to make a jurisdiction attractive for business investment. I believe there is considerable opportunity to develop natural resources and knowledge-based industries in the years ahead but this ain’t 1990. Trying to entice firms to hire more staff with grants and loans is not the solution. Working to define growth opportunities based on a jurisdiction’s USP, build a unique value proposition around those opportunities and then sell those opportunities to entrepreneurs and business leaders locally, nationally and internationally - is still the best approach. This applies to everything from mining projects to apple farming and cybersecurity and even tourism investment.

#4 The ideal candidate might be internal. There is a view among some folks that you must go outside to rejuvenate the organization. That’s not always the case - particularly given issues #1-#3 above.

#5 Metrics matter. I’m seeing a lot of stuff these days passing as economic development. I’m not going to get into a debate with you about this as everything can be given a ‘justification’. But in the end, a provincial economic development agency should get clear direction from the Premier and Cabinet about the broad vision for economic development - GDP growth, tax base growth, under-developed areas’ focus, etc. and then develop a clear plan to get there. Again, circa 2022 that will likely involve a wide spectrum of issues such as housing, rural immigration, etc. but it is up to the provincial agency to clearly map out for Cabinet how that gets done. When it comes to economic development ‘staying in our lane’ should be struck from the vocabulary. This doesn’t mean NSBI or ONB should be building houses but if housing is a barrier to economic development, they should be championing solutions.

Finally, I would suggest you avoid the aforementioned pre-retirement hires - the person looking for a few years’ work before retiring. This isn’t an absolute rule - I loved the idea of Francis McGuire at the head of ACOA for example - but I think given the current context a younger, passionate and deeply committed person might be the best. By younger, of course, I mean 40s-50s. The person must have some executive-level experience.

In general, I would avoid the big talkers. In my experience there are two types of candidates for any job - those that are superb candidates (resume/interview) and those who are superb at the job itself. Many times they are not the same person. Keep the BS-O-Meter at the ready. You do want someone who can fire up the team - this is one of the most exciting times to be involved in economic development - and the CEO must have a fully engaged and passionate team.

Go out and hire the best candidate - pay them a decent salary - and then set the bar high.

The stakes are high. Particularly in New Brunswick and Nova Scotia we can’t afford a repeat of the early 2000s. We need the 2020s and 2030s to be years of opportunity and growth in this region - if we want to raise enough taxes to sustainably fund public services and public infrastructure.