• Summary of current service performance
  VEDP's performance can best be evaluated based on the results of its Performance Measures over time. VEDP maintains two performance measure models, "All State Investment and Jobs Announcements and, more recently, VEDP has created "VEDP Assisted" Performance Measures to better reflect VEDP's direct impact on investment and job creation and also reflect the "vertical" markets in which VEDP will focus its resources. Both measures are reported to the VEDP Board of Directors.
  
  For our Strategic Plan and Annual Report, VEDP will continue to report its historical performance measures of "All State Investment and Jobs Announcements." VEDP has the following three Key Performance Measures:
  
  • Assist with Investment in Virginia by new and existing companies: Average for FY2005 through FY2009 = $3.51 Billion. FY10 Target is $2.60 Billion
  
  • Assist with creating new Jobs in Virginia by new and existing companies: Average for FY2005 through FY2009 = 27,046. FY10 Target is 17,000.
  
  • Number of companies counseled or that have participated in a Trade event: Average for FY2005 through FY2009 = 274. FY10 Target is 225. This represents a 10% target reduction from FY2008 due to budget cuts.
  
  More directly to the point of performance, VEDP performs a vital role in expanding the tax base for the Commonwealth of Virginia by identifying companies ready to expand and locate and ensuring that they do so in Virginia. We operate on a domestic and International stage to bring investment and jobs to Virginians and expand the tax base that creates the wealth to provide funds for other State programs.
• Summary of current productivity
  VEDP's use of technology has been one key to improved productivity. First, with the use of geographically referenced data, VEDP is able to provide company location decision makers with site selection information that has a broader scope and is of a higher quality than our competitors. That richer information is then presented more quickly using spatial technology allowing our prospects to make more informed decisions.
  
  When that spatial data is combined with web-enabled analytical tools, as VEDP has done on its website, YesVirginia.org, then the decision makers have a powerful method for determining if Virginia has sites that fit their needs. This "winnowing out" process allows VEDP's project managers to work on higher quality projects, increasing productivity.
  
  Another productivity strategy continues in FY10 due to past consolidation of resources by the International Divsions. Three examples are: The Frankfurt, Germany office was moved to Brussels, Belgium. The office space and three positions were eliminated, reducing overhead and redirecting the savings to market to all of Europe using contractors and consultants. The Brussels office is co-located with the Port Authority reducing overhead substantially. The second example is in Korea, which was closed in FY09 due to budget reductions. Those markets will be served from other locations. Thirdly, the Tokyo Office was moved to an office services space, reducing rent considerably and eliminating the support position.
  
  General productivity gains have occurred as performance expectations have been raised for all employees while budgets are being cut.

• Summary of Major Initiatives and Related Progress
  WHAT’S NEW FOR FY2010
  
  The following are various initiatives and strategies that will be implemented in this fiscal year:
  
  Marketing
  
  - Continue the Strategic Initiative Program around energy, global logistics, and cybersecurity.
  - Refine and implement the Gold Accounts (high value companies) outreach strategy.
  - Focus resources to implement target sector strategies in key areas of Energy, Advanced Manufacturing, and Information Technology.
  - Fully implement the Virginia Companie Program to develop strategies to retain and grow
  companies which have a presence in the Commonwealth.
  - Initiate a dialogue with selected corporate leadership in target sectors to engage their support
  of the VEDP message and become champions for the message in their corporate and
  political roles.
  - Refine and implement the focused outreach strategy to Site Selection Consultants.
  - Fully sustain and execute the Virginia Energy Marketing Plan through the transition of Administrations.
  - Refine and implement the Executive Pulse tool to assist localities in executing a professional Business Retention & Expansion program.
  - Facilitate development of the Virginia Innovation Alliance (as structured in the SRI Innovation study) by leveraging strategic research assets or other catalysts that enhance Virginia’s business case in the target sectors (i.e. support creation of Centers of Excellence in key areas of Energy, Information Technology, Advanced Manufacturing and Global Logistics)
  - Continue to identify, educate and engage stakeholders on the SRI emerging sectors strategy.
  - Fully implement the Energy Marketing Plan.
  - Produce an enhanced and more comprehensive “Directory of Internationally-Owned
  Companies in Virginia.”
  - Expand the Virginia International Investors Forum (VAIIF).
  - Launch "Visit Virginia" events targeting International Embassy officials.
  - Initiate “Export 3.0”, a new program designed to stimulate Virginia’s companies to sell into
  targeted international markets.
  - Provide enhanced assistance to Virginia service exporters via the VEDP Global Network in
  30+ countries.
  - Initiate “per click” Search Engine marketing to increase YesVirginia.org web traffic.
  - Develop marketing program utilizing social media such as web blogs, RSS feeds, and profiles
  on popular social web sites such as Facebook and LinkedIn.
  - Produce “Results,” a report on Virginia economic development activity in the preceding year
  for use as a marketing tool and to communicate VEDP’s economic impact to stakeholders.
  - Experiment with new uses for VEDP Call Center with prototype activities to conduct vertical
  sector-focused missions and conference call appointment-setting.
  
  Support
  
  - Continue to advance further recommendations of the Governor’s Mega Project Advisory
  Committee to identify, plan, and develop new sites to position Virginia to compete more
  effectively for “Mega” projects.
  - Expand acceptance and usage of the newly-inaugurated Virginia Economic Developers
  Research Network to share best practices and explore issues of importance among research
  practitioners in Virginia.
  - Serve as the economic development resource on the Virginia Community College System’s Career Pathways System task force to bring an economic development perspective to the workforce development system.
  - Serve as knowledge leaders of selected business sectors to be a resource for local and regional economic development allies.
  - Create and leverage networks of business champions that support ,validate and enhance the Virginia business case in strategic sectors.
  - Serve as the convener of the Virginia Tobacco Commission’s Technical Review Panel for its Research & Development Commercialization Grant Program by convening review panel members (higher education, professional services, businesses) to vet and recommend R&D applications to the TICRE Board.
  - Expand Virginia International Firm Directory through outsourced research and enhanced
  display on the website.
  - Expand and upgrade materials and datasets in support of International investment outreach.
  - Upgrade the GIS imagery to the 2009 aerial survey.
  - Create a unified software platform for Marketing, Contact, Prospect and Project Management
  - Provide fail-over capability for production servers.
  - Implement a Storage Area Network (SAN) and consolidate digital storage.
  - Implement a Virtual Server Cluster utilizing virtualization technology.
  - Develop an IT Best Practices and Security and Awareness training program for new and
  existing employees.
  - Extend GIS capability through a data service program on VanillaScan.
  - Provide information to interested market participants regarding Virginia’s corporate income
  tax apportionment formula, specifically focused on the new single sales factor formula.
  
  BUSINESS DEVELOPMENT
  
  In FY2010, Business Development will continue to position Virginia in major market sectors,
  through strategic initiatives, project management, and implementation of a regional alliance
  strategy. Major market outreach strategies include executing over 60 domestic U.S. marketing
  missions, industry specific conferences & special events, the Gold Accounts Program and the
  new Virginia Companie Program. Target industry sectors include Advanced Manufacturing &
  Materials, Transportation, Security and Services & IT, and Science & Research. Strategic
  Initiative Sectors include Energy, Global Logistics, and CyberSecurity. The division will align
  outreach to site selection consultants within these sectors.
  
  Business Development staff has significant experience in the target market areas and thus will
  continue to leverage the higher education stakeholders as key assets. Staff will also grow
  dialogue with private sector leaders in the target sectors, to build a cadre of executives who
  understand and champion Virginia’s message in corporate and political realms.
  
  In a broadened regional alliance strategy, Business Development will continue its leadership role to work with Virginia’s regions and localities on asset-based and target sector marketing. Regional communications will be implemented by agency staff, who communicate the VEDP vision and strategy; who build relationships and leverage state partners in regions; who understand and facilitate strategies for collaborative marketing of assets, and for addressing gaps; and who understand and facilitate communication of marketing partnerships
  
  INTERNATIONAL INVESTMENT
  
  The International Investment team within the Division of International Trade and Investment will conduct an aggressive direct client marketing effort to generate prospect visits to Virginia. The team will conduct 15 marketing missions in 9 countries to recruit foreign-owned firms to Virginia. Staff will focus Virginia’s marketing message around the VEDP’s vertical sectors. The investment team will work to identify internationally-owned Virginia companies through an enhanced and more comprehensive “Directory of Internationally-Owned Companies in Virginia”. The investment team will also contribute to, staff, and manage the 2nd annual Virginia International Investors Forum (VAIIF).
  
  INTERNATIONAL TRADE
  
  The International Trade program is based on the premise that successful international sales are obtained by working with individual companies, one-on-one. To achieve this, the program has three components: 1) increase awareness among the Virginia business community on the importance and benefits of exporting; 2) provide all necessary tools for selling into international markets, from market research to assistance with completing documentation; and 3) enable these companies to participate in trade events that lead to market entry, expansion, and increased international sales. A website (ExportVirginia.org), lists programs, services, upcoming events, and accepts payment for international trade events.
  
  The International Trade Division’s performance measures for FY2010 consist of the following: The Trade Division will generate sales for and/or provide technical assistance to 225 clients. The Trade Division will graduate 15 companies from its Virginia Leaders in Export Trade (VALET) Program, documenting obtained international sales. The Trade Division will graduate 20 companies from the Accessing International Markets (AIM) Program annually. The Trade Division will conduct 10 trade events around the world. A new initiative, “Export 3.0,” will begin and is designed to stimulate target market visits by Virginia companies. The trade team will also contribute to, and staff, trade-related components of the Virginia International Trade Alliance (VITAL).
  
  RESEARCH
  
  The Research Division will provide a broad range of critical services in support of VEDP’s
  marketing and outreach activities. Division staff will be full participants in the planning, research,
  and execution of outreach efforts for VEDP’s established vertical industry markets and specific
  marketing initiatives. An array of updated data content for the VEDP website and targeted
  industry collateral material will be prepared in cooperation with the Communications and
  Promotions Division. Industry sector and firm-level business targets will be presented to the
  International and Business Development Divisions for follow-up as a means of building up the
  project pipeline. Materials and data to support International outreach will be expanded and
  upgraded.
  
  Efforts will continue to improve the accuracy and completeness of VEDP’s real estate database,
  VirginiaScan. The more rigid protocols for ensuring ally verification of data have had a positive
  impact and will be maintained. Upgrades to the VirginiaScan package will be undertaken as part
  of an overall website overhaul process begun last year. Staff will continue improvements to the
  visual appearance and formatting of prospect proposals to succinctly convey needed information
  to our clients.
  
  Selected Division staff will serve as designated VEDP Regional Liaison Representatives; other
  staff will provide appropriate research support to the liaison program to facilitate communication
  of VEDP’s strategies to regional allies and to evaluate the alignment of VEDP’s strategies with
  those at the regional level. Tracking of major competitor state incentives and economic
  development budgets and initiatives will continue. Staff will continue development of a usable,
  integrated database of major Virginia employers. This work will support the new ExecutivePulse
  system used in connection with building a more cohesive statewide existing business and
  industry initiative. An updated Economic Development Handbook for Local Elected Officials will
  continue to be distributed to allies. Staff will continue to participate in local government officials’
  conferences, including VACo and VML, to help communicate VEDP’s role in economic
  development. Fiscal performance information showing the positive return on investment for
  Virginia incentives programs will be released and packaged to support our public relations and
  legislative strategy.
  
  COMMUNICATIONS AND PROMOTIONS
  
  Electronic marketing, public relations, direct marketing, and trade show and event promotion
  remain primary activities of the Communications and Promotions (C&P) Division. Major media
  advertising, a primary marketing tool, will not be utilized for the fifth year in a row due to budget
  constraints.
  
  In conjunction with the other VEDP divisions, C&P will research website best practices and make
  revisions as appropriate. Ally communication is enhanced with the publication of four issues of
  Commerce Quarterly. C&P will also organize the semi-annual VEDP/Ally meetings, as well as
  contact events for regional economic development marketing organization directors. C&P will
  support outreach marketing by providing appointment-setting services to traditional marketing
  missions; however, initiative-based, business sector direct marketing will be introduced at our
  Verizon-supported VEDP Call Center. C&P will manage VEDP’s trade show presence, marketing
  events, and the Governor’s foreign and domestic marketing missions.
  
  INFORMATION TECHNOLOGY
  
  The Information Technology (IT) Division operates and maintains the Partnership’s information
  systems, including the geographic information system (GIS) and the presentation and videoconferencing
  facility. The presentation facilities are supported by GIS data layers developed inhouse
  or obtained from local, state, federal, and commercial sources.
  
  Rapid access to these data and their presentation in an appealing and understandable format is
  essential to Virginia’s superior position in the marketing of sites, buildings, and other information
  products. In addition, the division operates and maintains VirginiaScan, a shared, web-enabled
  site selection, workforce, mapping, and data management tool. This tool is shared with regional
  and local economic development allies, many of whom are utilizing VirginiaScan as their primary
  web based marketing tool for industrial sites and buildings. Providing GIS mapping capabilities
  on VirginiaScan directly benefits VEDP’s economic development allies.
• Summary of Virginia's Ranking
  Virginia consistently ranks as a leader in the United States in categories that impact successful economic development. The following is a sampling of state rankings in FY2010:
  
  For the fourth year in a row, Virginia led the nation in Forbes.com’s “Best States for Business” ranking. The review examines multiple objective measurements, including business cost, regulatory climate, quality of the workforce and economic growth.
  
  CNBC, the leading financial news cable channel that reaches influential business and financial leaders around the world, in July, 2009, designated Virginia as its “Top State for Business.” Virginia ranked No. 1 on CNBC’s ranking in 2007 and second in 2008.
  
  Virginia also received a No. 1 national ranking from Pollina Corporate Real Estate Inc., a top U.S. corporate site relocation expert, and a second place ranking in Directorship magazine’s first annual Boardroom Guide to the Best States for Business.
  
  U.S. News & World Report ranked Virginia among the top five states to start a business.
  
  Cyberstates 2009 ranked Virginia No. 1 in highest concentration of technology workers as a percentage of the private sector workforce.
  
  Three Virginia schools ranked in the U.S. News & World Report “America’s Best Colleges” survey. The schools all ranked in the top 100. The University of Richmond ranked No. 23, The College of William & Mary ranked No. 32 and Virginia Tech came in at No. 71.
  
  Twenty Virginia colleges and universities made the Forbes.com 2009 rankings of 600 American colleges and universities. Compiled by the Center for College Affordability and Productivity, Virginia has two schools in the top 50 nationally -- Washington and Lee University (34) and the College of William & Mary (48), and seven in the top 100, including Hampden-Sydney College (54), University of Virginia (64), Sweet Briar College (69), Virginia Military Institute (79), and Hollins University (95).
  
  Virginia received the top score in the Government Performance Project’s “Grading the States 2008” report, the nation’s only comprehensive, independent analysis of how well each state performs in serving the public. In the first such rating in three years, Virginia achieved an overall grade of A- for performance. Two other states—Utah and Washington—received an A-, and the national average was B. Virginia also received an A- ranking in the 2005 “Grading the States” assessment.
  
  The Virginia Leaders In Export Trade (VALET) was recognized as a premier export program by NASBITE International, a multi-national professional trade organization. The Program Excellence Award is given to recognize innovation and originality in international trade education, counseling, training and research. According to NASBITE officials, the VALET program stood out because of its successful pairing of resources, state funding and private-sector support to promote and expand international sales for Virginia companies.
  
  The Virginia Economic Development Partnership’s International Trade Division was one of only four nationwide recipients of the 2008 “E Star” Award, the most prestigious export award an organization can receive. President George W. Bush and U.S. Secretary of Commerce Carlos M. Guitierrez presented the award May 20 to Secretary of Commerce and Trade Pat Gottschalk and VEDP International Division Director Paul Grossman at the White House.
• Summary of Customer Trends and Coverage
  VEDP’s analysis of active economic development expansion and locations projects continues to show that the average project time to reach a decision continues to shorten to a period of 180 days or less. This is a considerable compression of project timeframe from a few years ago when projects typically took 18 months or more to reach fruition. This has major implications for the way in which VEDP interacts with prospects, the pace of that interaction, and our ability to quickly and efficiently respond to their requests for information. This underscores the investment we have made to becoming more transparent with our data on the website, and also underscores the need for our staff to engage in mass customization and rapid response for project related materials. It has forced staff to engineer new ways to store, manage, retrieve, package, and deliver project materials to clients that is at once clear, readable, and conveys a positive, pro-business message about Virginia.
  
  Material is consistently and increasingly delivered in digital form, but still requires managers to have detailed skills for personal presentations and knowledge of Virginia, its communities, and various attributes about the business case for Virginia. The “hands on” time that our staff spends with clients remains a vital and ongoing aspect of our project management interaction and cannot be fully replaced by technological gains. The relationships built by managers with their clients are still a vital ingredient to our overall success.
  
  This has also required VEDP to focus on those industries that Virginia has assets to attract. By marketing to four major vertical markets, Advanced Manufacturing, Services and Security, Science and Research, and Transportation, VEDP better directs its resources to projects that will create investment and jobs in Virginia. This is true for the International as well as the Domestic markets. To ensure Virginia keeps its attention on the future, VEDP has also identified three strategic market areas to leverage: Energy, Information Technology, and Advanced Manufacturing.
  
  VEDP’s Regional Liaison Network will be modified this year as a result of budget reductions. This Network will be less formally implemented and more targeted toward linking our sector knowledge experts with appropriate regions to develop a cohesive outreach strategy.
  
  International Trade continues to develop programs that expand its ability to identify the needs of Virginia companies seeking to increase sales through exporting.
  
  Virginia's aging population has no impact on VEDP's ability to provide its services to Virginia citizens.

• Summary of Future Direction and Expectations
  Virginia remains one of the most robust and diverse of state economies on a national scale. Recent years have seen a strong growth in the development of a high technology, knowledge based workforce. We have one of the nation’s lowest unemployment rates, usually tracking almost two points lower than the national unemployment rate.
  
  Virginia traditionally is seen as a very cost competitive state with low core business costs. While wages and personal income have grown in recent years, the associated payroll costs for workers compensation and unemployment insurance are among the lowest in the nation. Overall business taxes are low and represent a comparatively low component of business cost. Energy and construction costs likewise are significantly lower than national averages.
  
  These overall business costs give Virginia a built-in natural advantage, especially when combined with a generally favorable business climate, and a strategic geographic location with respect to market access and transportation.
  
  However, we often find ourselves competing for business against states that offer sizeable business incentives in order to overcome many of our advantages. While we can compete very favorably on the long term operating environment, we often find companies are looking at rather short term project returns in order to justify corporate capital commitments, and we find the up-front incentives for cash that many states offer is very attractive. Virginia’s incentive pool is a fraction of many of our competitor states and, as a result, if projects are justified on the basis of a short term time horizon alone, we are not always able to match our competition and have lost projects on the basis of incentives. To our credit, Virginia uses a benefit/cost approach to estimate the State’s return on investment and has garnered a reputation for being a responsible steward of the incentives funds we do have.
  
  The "Mega Projects" legislation enacted in 2009 will enhance our ability to offeer larger incentives for larger projects, if fiscally prudent and appropriate.
  
  Increasingly we also see competitor states adjusting their tax policies in order to help induce economic activity in key market areas. Examples include new sales tax exemptions for computer data centers, lower insurance premium tax rates, and broad application of single sales factor apportionment methods for corporate income taxation. Virginia will need to be diligent in keeping up with trends and make adjustments to our tax policies, as needed, in order to maintain a competitive business case.
  
  New International Investment Markets:
  
  VEDP’s research and “on-the-ground” contacts in China and India strongly indicate that these emerging markets are poised for making investments in the United States economy. In addition, several Latin American countries show promise for investment in the U.S. More needs to be done to keep Virginia in front of the competition for new opportunities to export Virginia products and position Virginia for future investment from those countries. Due to budget constraints, all funding for continued marketing to those markets was eliminated.
  
  International Trade will face increasing demand for its programs and services as businesses engage in the global marketplace. Growth of international trade is a 50-year long trend with no end in sight. Virginia businesses expect three things: more technical and tailored international sales assistance, introductions to newly emerging markets and structured constituency services, the latter to provide advocacy and ongoing support for mature exporting companies.
  
  International Trade needs more resources to aid Virginia businesses in India and China. The weakening dollar provides great opportunities that we cannot seize. The global economy continues to demand American innovation and quality, offering international access for Virginia businesses
• Summary of Potential Impediments to Achievement
  Given Virginia’s assets generally and VEDP’s successful performance, impediments can best be identified as resource related. For example, Virginia’s branding advertising has now been “dark” for several years. This lack of advertising presence has a deteriorating effect on the “top of mind” awareness of Virginia as a player in the competitive economic development market, particularly in the international arena. As the global economy expands, making the world “smaller” in terms of access to information, company expansion decision makers need to know that Virginia is an option. They need to know that Virginia exists beyond its history, mountains, and beaches.
  
  In particular, Virginia has had little ability to take advantage of its leadership in economic development rankings. This is a significant lost opportunity to promote Virginia domestically and internationally.
  
  Advertising Background:
  
  In the early 1990s, the then Virginia Department of Economic Development’s advertising budget was lined out in the face of severe budget reductions. However, by the mid-90s, marketing funding was increased significantly in recognition that Virginia’s economic development marketing had fallen behind much of the competition. This began a number of years of major advertising activity that contributed to Virginia’s ascendancy as a national leader in economic development best practices.
  
  Most significantly was VEDP’s move to targeted television advertising in FY2001. Over a number of years, VEDP (and its predecessor organization), had conducted several waves of primary, quantitative market research comparing favorability as a business location. Consistently, this nationwide polling of senior business managers placed the Commonwealth fifth among directly competing states. Following flights of television advertising targeting C-level executives on CNN, Fox News Channel, and The Golf Channel, research revealed Virginia had moved to second place behind only the State of North Carolina.
  
  In the face of budget cuts beginning in FY2003, VEDP eliminated the major brand advertising program in favor of maintaining other outreach marketing efforts. With the exception of limited industry sector and economic development trade print advertising, Virginia has been without a voice in the marketplace.
  
  Unfortunately, our competition’s marketing is not similarly constricted. During our hiatus, advertising programs in major national business media were underway by Mississippi, Pennsylvania, Tennessee, Michigan, Massachusetts, Arkansas, Ontario, Florida, Texas, Alabama, Georgia, and Maryland, among others.
  
  Closely related is advertising to targeted markets through print media. While VEDP has been able to periodically apply portions of its operating funds toward this vital communication tool, that approach is not sufficient to maintain a consistent presence in the industry trade journals. Virginia needs to communicate to the sectors of the economy, such as Science and Technology and Advanced Manufacturing that create high quality jobs and require significant investment. They and others need to know about Virginia’s infrastructure, labor force, minimal tax burden, quality of life, and other assets that can best be described in print advertising.
  
  As important as advertising are efforts to keep our sales personnel out in the markets that Virginia is trying to attract. Over the last ten years, our marketing budget has continued to erode through budget reductions and inflation. While VEDP has successfully continued to create efficiencies, there comes a time when there are no more efficiencies to realize and additional funding is needed to fulfill the mission. VEDP is at that point now. The Board of Directors has been briefed on these conditions and is developing strategies to address them.
  
  Incentives:
  
  Virginia’s economic development incentive arsenal needs to be 1) fully funded; 2) flexible; and 3) aligned with changing target sectors. Additionally, Virginia should consider creating a sustained funding mechanism for its incentive pool, and creating appropriate incentives for the target sectors.”
  
  The State has been fortunate in its ability to manage the Governor's Opportunity Fund in such a way as to have had sufficient funds to attract projects to Virginia. The last two biennia have seen considerable reductions from the original appropriation of $30 million to just over $15 million. When demand has merited it, Governors have ensured that sufficient funds were available. As the economy recovers it will be critical that the GOF continue to be sufficiently funded, especially if Virginia hopes to make inroads in the alternative energy sector.
  
  Commitments from incentives, such as the Virginia Investment Partnership (VIP), the Virginia Economic Development Investment Grant (VEDIG), the Major Eligible Employer (MEE) and specific funding for the Semiconductor Industry, SRI, and Rolls Royce, were sufficiently funded when the General Assembly acted upon the budget in the last biennium and we expect that the those obligations will continue to be met.
  
  the Virginia Jobs Investment Program (VJIP) incentive is important to VEDP and Virginia as an incentive for attracting investment and jobs. Evidence of other states’ efforts in workforce related programs can be found in an article published by the State Science and Technology Institute, which tracks nationwide issues related to Technology Based Economic Development.
  
  States Commit to Worker Training Programs for Economic Growth
  
  Recognizing the benefits of a skilled workforce to match the new manufacturing and high-tech jobs of the 21st Century, states are turning to worker training and retraining programs in order to remain economically competitive. Last year, Tennessee, Nebraska and Connecticut committed a combined total of $37 million for worker training initiatives. State funding that supplements federal funding is critical, as federal funding is generally less flexible. Support for the Virginia Jobs Investment Program, and for the establishment of a Career Pathways System that crosses state agencies, is important.
  
  International Trade Resource Needs:
  
  The Trade Division, like the entire VEDP budget has been severely reduced for this biennium. The result is that the performance measure for the number of companies assisted with export counsel and with show attendance has been reduced by 10%, from 250 to 225 and a reduction in trade missions from 18 to 12.
  
  New International Investment Markets:
  
  VEDP’s research and “on-the-ground” contacts in China and India strongly indicate that these emerging markets are poised for making investments in the United States economy. This became particularly evident with two Governor’s Missions now to those countries. More needs to be done to keep Virginia in front of the competition for new opportunities to export Virginia products and position Virginia for future investment from those countries. Unfortunately, the requested funding for continued marketing to those markets has not been supported.
  
  Operating Funds:
  
  VEDP has seen a significant erosion of its base operating budget over the last 10 years. On a present value basis, VEDP has lost 33 percent of its operating budget and 22 percent of its personnel since FY2001. This erosion substantially inhibits Virginia’s engagement in various markets and, even without the recent economic slowdown, has had a negative impact on the size of our project pipeline. Part of the operating cost reduction has impacted our international presence, both in established markets and in pursuing emerging markets, such as creating a significant presence in China and India. Restoring funds to effectively undertake our mission will be an ongoing challenge VEDP will need to address with the General Assembly and the Administration in coming years.

• Description of the Agency's Products and/or Services:
  Current Services:
  
  Business Development - Efforts to encourage U.S. businesses to locate to and expand in Virginia in order to create high-quality, high-paying private-sector jobs, increase the Commonwealth’s tax base, and improve the quality of life for its citizens.
  
  International Investment - Efforts to encourage international businesses to locate to and expand in Virginia in order to create high-quality, high-paying private-sector jobs, increase the Commonwealth's tax base, and improve the quality of life for its citizens.
  
  International Trade - Efforts to increase international sales for Virginia companies, thereby, creating private sector jobs, increasing tax revenue, and improving the quality of life for Virginia’s citizens.
  
  Communications and Promotions - Efforts to conduct various marketing and promotion programs directed toward business location decision-makers, and the domestic and international business communities.
  
  Research - Efforts to provide economic and industry data that will enable VEDP to target companies ready to relocate or expand, to prepare client recruitment proposals, and to assist localities to ready themselves for economic development.
  
  Information Technology - Efforts to support VEDP, Virginia Tourism Corporation (VTC), and Virginia National Defense Industrial Authority (VNDIA) in accomplishing their respective missions by providing an effective technology infrastructure within which to work. IT maintains a state-of-the-art presentation facility supported by GIS data layers and maintains a web-enabled data management tool, VirginiaScan.
  
  Administration - Efforts to support VEDP in accomplishing its mission by providing executive leadership and legal, fiscal, personnel and support services. Efforts to support the VTC and VNDIA in accomplishing its mission by providing certain fiscal, personnel, and support services.
• Factors Impacting Agency Products and/or Services:
  A primary factor impacting VEDP’s services is one associated with budgetary constraints. Our effectiveness in the marketplace has been diminished by the lack of advertising and marketing money, the diminution in operating funds related to flat funding as prices for products and services VEDP purchases rise, and the lack of funding to impact emerging markets, like China and India. Over the last several years the International Trade program has also taken its share of budget reductions limiting its ability to reach existing businesses that create a substantial number of Virginia jobs.
  
  A positive factor impacting VEDP’s services is our use of technology to lessen the time it takes for those seeking location information to obtain that information through our website and its various tools. Location consultants and decision makers can quickly evaluate Virginia’s ability to meet the client’s criteria. They can compare Virginia to other states and composite national statistics on education, workforce, tax burden, and the like. Decision makers can look at hundreds of sites and local infrastructure through the web-based site selection tool. Once deciding to contact Virginia, our project management teams can quickly construct proposals using the numerous technology-driven tools that VEDP has developed.
• Anticipated Changes in Products or Services:
  Virginia’s economic development services are constantly changing to meet new client demands. Several examples include:
  
  The Virginia International Trade Alliance (VITAL) that has been created to develop a comprehensive Virginia International Investment and Trade Strategy. The creation of VITAL has been endorsed by the Governor.
  
  The Regional Liaison Network was designed to understand a region's assets and identify industries and companies to match those assets.
  
  Mega Projects: The Governor, recognizing the need for Virginia to be able to compete for very large economic development projects, formed a Mega Projects Advisory Committee. The Committee was made up of State leaders with an interest in the economic impact of attracting a mega project, such as an auto assembly plant. The Committee was charged with developing policy recommendations so Virginia will be ready with financing, competitive incentives, and suitable sites. Virginia's Rural Economic Development Strategic Plan calls for the development of a mega projects policy. The mega projects legislation enacted in 2009 will enhance Virginia's ability to offer largeer incentives for larger projects, if fiscally prudent and appropriate.

• Financial Overview:
  VEDP is funded with substantially all General Funds through an appropriation from the Commonwealth of Virginia. Only two percent of its budget comes through charging fees to companies for participation in various missions and shows and from interest on cash balances. VEDP receives its appropriation in 12 equal installments throughout the year.
• Financial Breakdown:

  	FY 2011			FY 2012
  	General Fund	Nongeneral Fund		General Fund	Nongeneral Fund
  Base Budget	$16,482,457	$0		$16,482,457	$0
  Change To Base	$0	$0		$0	$0
  Agency Total	$16,482,457	$0		$16,482,457	$0

  This financial summary is computed from information entered in the service area plans.

• Overview
  VEDP consists of salaried, wage and contract employees to deliver services to its customers worldwide. A challenge that the agency will face in the future is replacing those employees who retire as employees are becoming eligible to do so.
  
  It should be noted that VEDP does not have an FTE level since VEDP employees are not State employees. However, each year the VEDP Board of Directors authorizes an Operating Plan that includes an employment level. For FY2010, VEDP’s Board authorized an employment level of 102 staff.
• Human Resource Levels

  Effective Date	9/1/2009
  Total Authorized Position level	0
  Vacant Positions	0
  Current Employment Level	0.0
  Non-Classified (Filled)	0
  Full-Time Classified (Filled)	0		breakout of Current Employment Level
  Part-Time Classified (Filled)	0
  Faculty (Filled)	0
  Wage	0
  Contract Employees	0
  Total Human Resource Level	0.0		= Current Employment Level + Wage and Contract Employees

• Factors Impacting HR
  As mentioned above, as some of the current work force ages, finding qualified replacement personnel will be a challenge. Virginia has one of the lowest unemployment rates, making it even more challenging than otherwise. In this unusual climate, due to recent downsizing and layoffs, there is a problem with attracting over-qualified personnel.
• Anticipated HR Changes
  Workforce reductions will occur if the current budget reductions under consideration for FY10 and the 10-12 biennium are enacted.

• Current Operational IT Investments:
  The Information Technology (IT) Division provides integrated information systems support to Virginia Economic Development Partnership, Virginia Tourism Corporation and Virginia National Defense Industrial Authority. IT operates and maintains all network and telecommunications infrastructure, a geographic information system (GIS), and two presentation conference rooms. The 250 node personal computer network and telecommunications infrastructure supports 25 facilities, four web services (YesVirginia.org, ExportVirginia.org, VirginiaAllies.org, and VirginiaScan) and all applications, databases, and programs critical to the economic development marketing process.
  
  The agency’s prospect and decision support management system is supported by GIS data layers developed in-house or obtained from local, state, federal, and commercial sources. Rapid access to these data and their presentation in an appealing and understandable format is essential to Virginia’s superior position in the marketing of location sites and its products and services for export.
  
  In addition, the IT division provides technical and marketing support to the regional and local economic development organizations through, and maintenance of, VirginiaScan, a web-enabled marketing (industrial site development, enhancement, building, selection, and workforce) and data management tool. Currently, VirginiaScan is used as a web-enabled marketing tool by at least nine regional and ten local economic development organizations. An extension is planned to include web-based mapping functionality for both external and internal users.
• Factors Impacting the Current IT:
  The use of technology has always been a priority for VEDP. This is evidenced by its use of technology in every aspect of the economic development process. From the use of automated and web-based research tools, data development for geo-referenced presentation, web-based tools for companies needing location information, and our community-based customers that need assistance in having their site and infrastructure information available to the public.
  
  A singular factor that will continue to challenge IT is a shrinking support budget.
• Proposed IT Solutions:
  It should be noted that VEDP has entered into a Service Level Agreement (SLA) with the Virginia Information Technology Agency (VITA) that recognizes VEDP’s standing as an authority organized within the Commonwealth of Virginia. The enabling legislation creating VEDP precludes it from using the Commonwealth’s Treasury and Comptroller mechanisms and exempts it from the Virginia Public Procurement Act and the Virginia Personnel Act. As a result, VITA and VEDP have agreed to an SLA that commits the parties to cooperation and information sharing and recognizes that an Information Technology Strategic Plan (ITSP) is not required.
  
  Specifically, the exclusion is articulated in the Exclusions and Special Notations section of the Executive Agreement signed by VITA. The section reads as follows:
  
  2.3.2 The VEDP Authority is required to develope annually a Board approved operational plan. Because the Information Technology Division is central to and part of VEDP’s annual operational plan, VEDP is not required to submit an ITSP. This has been the case since the inception of VEDP. A copy of VEDP’s operations plan is available to VITA at any time.
• Current IT Services:

  Estimated Ongoing Operations and Maintenance Costs for Existing IT Investments

  	Cost - Year 1		Cost - Year 2
  	General Fund	Non-general Fund	General Fund	Non-general Fund
  Projected Service Fees	$40,035	$0	$40,635	$0
  Changes (+/-) to VITA Infrastructure	$0	$0	$0	$0
  Estimated VITA Infrastructure	$40,035	$0	$40,635	$0
  Specialized Infrastructure	$0	$0	$0	$0
  Agency IT Staff	$0	$0	$0	$0
  Non-agency IT Staff	$0	$0	$0	$0
  Other Application Costs	$0	$0	$0	$0
  Agency IT Current Services	$40,035	$0	$40,635	$0

  Comments:
  [Nothing entered]
• Proposed IT Investments

  Estimated Costs for Projects and New IT Investments

  	Cost - Year 1		Cost - Year 2
  	General Fund	Non-general Fund	General Fund	Non-general Fund
  Major IT Projects	$0	$0	$0	$0
  Non-major IT Projects	$0	$0	$0	$0
  Agency-level IT Projects	$0	$0	$0	$0
  Major Stand Alone IT Procurements	$0	$0	$0	$0
  Non-major Stand Alone IT Procurements	$0	$0	$0	$0
  Total Proposed IT Investments	$0	$0	$0	$0

• Projected Total IT Budget

  	Cost - Year 1		Cost - Year 2
  	General Fund	Non-general Fund	General Fund	Non-general Fund
  Current IT Services	$40,035	$0	$40,635	$0
  Proposed IT Investments	$0	$0	$0	$0
  Total	$40,035	$0	$40,635	$0

• Current State of Capital Investments:
  VEDP has no plans for capital outlay projects.
• Factors Impacting Capital Investments:
  [Nothing entered]
• Capital Investments Alignment:
  [Nothing entered]

This singular goal summarizes all VEDP Objectives and related Performance Measures and supports its Mission and Vision.

• Be a national leader in the preservation and enhancement of our economy.

This goal ensures compliance with federal and state regulations, policies and procedures for Commonwealth preparedness, as well as guidelines promulgated by the Assistant to the Governor for Commonwealth Preparedness, in collaboration with the Governor's Cabinet, the Commonwealth Preparedness Working Group, the Department of Planning and Budget and the Council on Virginia's Future. The goal supports acheivement of the Commonwealth's statewide goal of protecting the public's safety and security ensuring a fair and effective system of justice and providing a prepared response to emergencies and disasters of all kinds.

• Elevate the levels of educational preparedness and attainment of our citizens.

• We will be prepared to act in the interest of the citizens of the Commonwealth and its infrastructure during emergency situations by actively planning and training both as an agency and as individuals.
  Objective Strategies

  • VEDP's Emergency Coordination Officer will stay in regular communication with the Office of Commonwealth Preparedness, the Virginia Department of Emergency Management, and other Commonwealth Preparedness Working Group agencies.

  Link to State Strategy

  • nothing linked

  Objective Measures

  • Agency Preparedness Assessment Score
    Measure Class:

    Other

    Measure Type:

    Outcome

    Measure Frequency:

    Annual

    Preferred Trend:

    Up

    Measure Baseline Value:

    79

    Date:

    6/30/2008

    Measure Baseline Description: 2008 Agency Preparedness Assessment Results (minimum 75% out of 100)

    Measure Target Value:

    80

    Date:

    6/30/2011

    Measure Target Description: Maintain 80% minimum score

    Long-range Measure Target Value:

    80

    Date:

    6/30/2012

    Long-range Measure Target Description: Maintain 80% minimum score

    Data Source and Calculation: The Agency Preparedness Assessment is an all-hazards assessment tool that measures agencies' compliance with requirements and best practices. The assessment has components including Physical Security, Continuity of Operations, Information Security, Vital Records, Fire Safety, Human Resources, Risk Management and Internal Controls, and the National Incident Management System (for Virginia Emergency Response Team -VERT- agencies only).

• Factors Impacting the Products and/or Services:
  No changes anticipated
• Anticipated Changes to the Products and/or Services
  No changes anticipated
• Listing of Products and/or Services
  • Disburse pass through funds to other state funded economic development organizations.

• Pass through State funds to other economic development entities.
  Objective Description
  This objective is designed to ensure that organizations receiving State funds are paid in a timely manner.
  Link to State Strategy
  • nothing linked
  Objective Measures
  • Percent of periodic payments made to other State economic development entities in a timely and accurate manner.
    Measure Class:

    Other

    Measure Type:

    Outcome

    Measure Frequency:

    Annual

    Preferred Trend:

    Maintain

    Frequency Comment: Percent of payments made

    Measure Baseline Value:

    100

    Date:

    6/30/2008

    Measure Baseline Description: 100% of funds paid for FY08

    Measure Target Value:

    100

    Date:

    6/30/2011

    Measure Target Description: 100% of funds paid by June 30, 2011

    Data Source and Calculation: Appropriations Act and VEDP financial reports.

• Factors Impacting the Products and/or Services:
  Please see the Strategic Plan
• Anticipated Changes to the Products and/or Services
  Please see the Strategic Plan
• Listing of Products and/or Services
  • Please see the Strategic Plan

• We will assist new and existing companies in making investments in Virginia.
  Objective Description
  The purpose of this objective is to assist in having domestic and international companies, currently located in or outside of Virginia, invest capital in Virginia localities. This objective is consistent with VEDP's Mission and Vision of expanding the Virginia economy.
  Alignment to Agency Goals
  • Agency Goal: To recruit new and expanding businesses to invest dollars and create jobs in Virginia and promote international sales of Virginia products and services
  Objective Strategies
  • Aggressively market Virginia and its regions to prospects and consultants to generate active projects
  • Effectively manage projects by strategically utilizing resources
  • Share the project and industry expertise with staff with local and regional allies to assist them in effective marketing
  • Provide superior customer service
  • Increase announced investment in Virginia's distressed communities
  • Market Virginia to new international markets
  Link to State Strategy
  • nothing linked
  Objective Measures
  • Dollars invested by new and existing companies.
    Measure Class:

    Agency Key

    Measure Type:

    Outcome

    Measure Frequency:

    Annual

    Preferred Trend:

    Up

    Frequency Comment: Annual measure target is set by the VEDP Board in June for the next year.

    Measure Baseline Value:

    3.51

    Date:

    Measure Baseline Description: Average of $3.51 billions of dollars of investment for years FY2005 through FY2009.

    Measure Target Value:

    2.60

    Date:

    6/30/2010

    Measure Target Description: $2.6 billion invested by new and expanding companies by June 30, 2010.

    Data Source and Calculation: Amount of dollars Invested by New and Existing Companies is an outcome based measure reported annually. The data source is company investment announcements and is measured by the dollars invested by companies locating to and expanding in Virginia.

• We will assist new and existing companies in creating jobs in Virginia.
  Objective Description
  The objective is consistent with VEDP's mission and vision of expanding Virginia's economy.
  Alignment to Agency Goals
  • Agency Goal: To recruit new and expanding businesses to invest dollars and create jobs in Virginia and promote international sales of Virginia products and services
  Objective Strategies
  • These strategies are identical to assisting companies in investing in Virginia.
  Link to State Strategy
  • nothing linked
  Objective Measures
  • Number of Jobs created by new and existing companies.
    Measure Class:

    Agency Key

    Measure Type:

    Outcome

    Measure Frequency:

    Annual

    Preferred Trend:

    Up

    Measure Baseline Value:

    27046

    Date:

    Measure Baseline Description: 27046 average number of jobs for years FY2005 through FY2009.

    Measure Target Value:

    17000

    Date:

    6/30/2010

    Measure Target Description: 17,000 Jobs created by new and existing companies in Virginia by June 30 2010.

    Data Source and Calculation: Number of jobs created by New and Existing Companies is an outcome based measure reported annually. The data source is company job announcements and is measured by the jobs created by companies locating to and expanding in Virginia.

  • Dollar Unit Cost of Direct Jobs Announced
    Measure Class:

    Productivity

    Measure Frequency:

    Annual

    Preferred Trend:

    Down

    Frequency Comment: Best measured annually along with VEDP's Performance Measures

    Measure Baseline Value:

    796

    Date:

    6/30/2008

    Measure Baseline Description: As calculated using the Measure Methodology with FY08 Actual Data.

    Measure Target Value:

    863

    Date:

    6/30/2010

    Measure Target Description: As calculated using the Measure Methodology with FY10 Budget Data

    Data Source and Calculation: VEDP's costs associated with having companies locate and expand in Virginia divided by VEDP Assisted Direct Jobs Announced.

• We will assist Virginia companies in increasing international sales of their products and services.
  Objective Description
  The purpose of this objective is to assist in having Virginia companies grow through identifying new international markets to sell their products and services. This objective is consistent with VEDP's Mission and Vision of expanding the Virginia economy.
  Alignment to Agency Goals
  • Agency Goal: To recruit new and expanding businesses to invest dollars and create jobs in Virginia and promote international sales of Virginia products and services
  Objective Strategies
  • Recruit Virginia companies to participate in international market visits.
  • Provide service and counselling through the AIM and VALET programs
  • Continue the Virginia International Trade Alliance (VITAL) efforts to establish and implement a State strategy for international trade and investment.
  • Provide one-on-one international sales assistance to Virginia businesses.
  • Provide international research information to Virginia companies
  • Support and participate in Governor-led missions
  • Provide market visit leadership through "Export 3.0"
  Link to State Strategy
  • nothing linked
  Objective Measures
  • Companies counseled or engaged in a Trade event.
    Measure Class:

    Agency Key

    Measure Type:

    Output

    Measure Frequency:

    Annual

    Preferred Trend:

    Up

    Measure Baseline Value:

    274

    Date:

    Measure Baseline Description: 274 average number of companies for years FY2005 through FY2009.

    Measure Target Value:

    225

    Date:

    6/30/2010

    Measure Target Description: 225 companies counciled or that have participated in a Trade event by June 30, 2010.

    Data Source and Calculation: Companies assisted in increasing international sales of their products and services is accomplished through a combination of two outputs; companies counseled and companies participating in a Trade event. Data comes from Client Impact Statements companies complete after receiving export assistance and companies who have participated in a Trade event.

• Ensure that resources are used efficiently and programs are managed effectively, and in a manner consistent with applicable state and federal requirements.
  Objective Description
  The purpose of this objective is to ensure that VEDP applies sound management practices, complies with internal control standards consistent with its stewardship over taxpayer funds, and complies with State and federal requirements.
  Alignment to Agency Goals
  • Agency Goal: To recruit new and expanding businesses to invest dollars and create jobs in Virginia and promote international sales of Virginia products and services
  Objective Strategies
  • Meet the various Administrative Measures criteria required to achieve "Meets Expectations"
  Link to State Strategy
  • nothing linked
  Objective Measures
  • Percent of Administrative Measures marked as ''Meets Expectations'' for VEDP
    Measure Class:

    Other

    Measure Type:

    Outcome

    Measure Frequency:

    Annual

    Preferred Trend:

    Maintain

    Measure Baseline Value:

    100

    Date:

    6/30/2009

    Measure Baseline Description: 100% of Administrative Measures having a score of "Meets Expectations"

    Measure Target Value:

    100

    Date:

    6/30/2011

    Measure Target Description: 100% of Administrative Measures having a score of "Meets Expectations" by June 30, 2011

    Long-range Measure Target Value:

    100

    Date:

    6/30/2012

    Long-range Measure Target Description: 100% of Administrative Measures having a score of "Meets Expectations" by June 30, 2012

    Data Source and Calculation: As described in Virginia Performs Administrative Measures