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The Business of Cities and 
Metropolitan Business 
Leadership Organisations 
Greg 
Clark 
Pro-­‐Bogota 
November 
2014
Cities and Business – A Rapidly 
Evolving Relationship 
Ci8es 
and 
commerce 
have 
always 
been 
inextricably 
linked 
….. 
….. 
but 
rapid 
and 
con8nuing 
urbanisa8on 
and 
globalisa8on 
are 
changing 
the 
bonds 
between 
the 
two. 
© 
The 
Business 
of 
Ci8es 
Ltd
Trend 
1 
Ci8es 
are 
Emerging 
Markets 
for 
Businesses 
Trend 
2 
Businesses 
are 
(Re)Urbanising 
Trend 
3 
The 
rise 
of 
Tradable 
Urban 
Services 
Trend 
4 
Businesses 
rebranding 
for 
city 
markets 
and 
consumers 
Trend 
5 
Ci8es 
are 
Hubs 
of 
Business 
Innova8on 
trend 
6 
Businesses 
are 
restructuring 
to 
meet 
City 
goals 
© 
The 
Business 
of 
Ci8es 
Ltd
Ci8es 
are 
Emerging 
Markets 
for 
Businesses 
• Size 
of 
the 
global 
metropolitan 
market 
• 70% 
of 
world 
popula8on 
of 
9 
billion 
by 
2050 
• 70 
million 
people 
per 
year 
added 
to 
developing 
world 
ci8es 
• 2 
billion 
strong 
‘consumer 
class’ 
in 
emerging 
market 
ci8es 
by 
2025 
World’s 
Urban 
Popula0on 
in 
2050 
Source: 
UNICEF 
© 
The 
Business 
of 
Ci8es 
Ltd
Ci8es 
are 
Emerging 
Markets 
for 
Businesses 
• Shi[ 
in 
nature 
of 
economies 
and 
products 
• Technology 
is 
shi[ing 
which 
sectors 
globalise 
and 
how 
they 
do 
so 
• Growth 
of 
service 
economies 
encourages 
commercialisa8on 
of 
urban 
space 
• Ci8es 
are 
the 
natural 
habitat 
of 
innova8on 
(Glaeser, 
Florida, 
Hollis, 
Katz) 
• Customers 
of 
increasing 
importance 
• Expansion, 
upgrading, 
replacement 
of 
infrastructure 
= 
€27 
trillion 
over 
next 
25 
years 
(Booz 
Allen 
Hamilton) 
• Smart 
Ci8es 
market 
= 
$400 
billion 
by 
2020 
(UK 
government) 
• Building 
and 
retrofit 
– 
demand 
for 
advanced 
technology 
and 
innova8ons 
in 
design, 
finance, 
and 
delivery 
of 
city 
systems 
• Purchasers 
of 
huge 
range 
of 
services 
from 
legal 
advice 
to 
landscaping 
© 
The 
Business 
of 
Ci8es 
Ltd
Why 
are 
businesses 
moving 
back 
to 
the 
city? 
Demographics 
and 
lifestyle 
Access 
to 
Talent 
and 
networks 
Transport 
and 
safety 
and 
educa8on 
Improvements 
Changing 
Working 
Prac8ces 
Sustainability 
Concerns 
Policy-­‐driven 
and 
market 
incen8ves 
(eg 
trade) 
Technological 
Advances 
Opportuni8es 
to 
collaborate 
© 
The 
Business 
of 
Ci8es 
Ltd 
Businesses 
are 
(Re)Urbanising 
Agglomera8on 
effects 
are 
much 
bigger 
in 
growth 
sectors 
and 
globalising 
sectors
Rise of Tradable Urban Services 
• Industries 
which 
support 
city 
building 
and 
growth 
have 
become 
important 
tradable 
economic 
clusters 
e.g. 
Planning, 
architecture, 
design, 
energy, 
water, 
infrastructure, 
engineering, 
waste 
management, 
housing 
development. 
• Businesses 
emerged 
to 
meet 
the 
urbanisa8on 
needs 
of 
(now) 
mature 
ci8es. 
• Now, 
rapidly 
interna8onalising 
to 
support 
the 
growth 
of 
emerging 
ci8es. 
Sydney: 
Engineering 
and 
Construc8on 
to 
Dubai 
and 
Abu 
Dhabi 
London: 
Architecture 
and 
Urban 
Design 
Worldwide 
Paris: 
Water, 
Waste 
and 
Energy 
to 
African 
ci8es 
Masdar 
City, 
Foster 
+ 
Co 
Masterplan 
Zaha 
Hadid 
deisgn 
for 
Abu 
Dhabi 
Performing 
Arts 
Centre 
© 
The 
Business 
of 
Ci8es 
Ltd
Business Brands in City Markets 
Sustainability 
/ 
Eco-­‐Ci0es 
Siemens 
GE 
Arup 
Bombardier 
The 
‘City 
of 
the 
Future’ 
Audi 
Deutsche 
Bank 
Microso[ 
Atkins 
GDF 
Suez 
Liveability 
Mercer 
Monocle 
Grosvenor 
Global 
Ci0es 
JP 
Morgan 
Aecom 
AT 
Kearney 
Smart 
Ci0es 
+ 
Networks 
Cisco 
Ericsson 
IBM 
Cap 
Gemini 
Bird 
+ 
Bird 
© 
The 
Business 
of 
Ci8es 
Ltd
Cities are Hubs of Business Innovation 
Urban Spaces Encourage Business 
Knowledge Networks to Form 
Why? 
• Density 
– 
brings 
businesses 
together 
for 
idea 
exchange 
• Assets 
– 
developed 
transport 
and 
comms 
networks 
enable 
increased 
business 
contact 
• Ins8tu8ons 
– 
(Universi8es, 
incubators, 
development 
agencies) 
overcome 
co-­‐ordina8on 
problems 
and 
sustain 
networks 
Examples 
• Tech 
– 
Lisbon, 
London, 
Tel 
Aviv, 
Berlin, 
Amsterdam, 
Nairobi 
• Fashion 
– 
New 
York, 
London, 
Amsterdam, 
Milan 
• Life 
Sciences 
– 
Dundee, 
Dortmund, 
Boston 
• Crea8ve 
and 
Media 
– 
Seoul, 
Manchester, 
Shanghai, 
Lagos 
© 
The 
Business 
of 
Ci8es 
Ltd
Cities are Hubs of Business Innovation 
Cities as Test Markets 
• The 
most 
cosmopolitan 
ci8es 
are 
microcosms 
of 
the 
global 
market 
– 
ideal 
loca8ons 
for 
developing 
/ 
trialling 
products 
• Some 
ci8es 
promote 
their 
role 
as 
regional 
test 
markets 
-­‐ Invest 
in 
Brussels: 
city 
representa8ve 
of 
the 
European 
Market 
-­‐ Jakarta 
– 
densely 
populated, 
high 
consumer 
confidence, 
tes8ng 
ground 
for 
emerging 
markets 
• Others 
have 
become 
renowned 
as 
na8onal 
test 
markets 
-­‐ Columbus, 
Ohio 
– 
US 
fast 
food 
-­‐ Bangalore 
– 
product 
tes8ng 
for 
Indian 
market 
• Diverse 
labour 
forces 
develop 
content 
which 
translates 
across 
cultural 
barriers 
© 
The 
Business 
of 
Ci8es 
Ltd
Corporate Urbanising Structure: 
Internal Reorganisation 
• Ci8es 
divisions 
e.g. 
Siemens 
‘Infrastructure 
and 
Ci8es’ 
sector 
• Representa8ves 
in 
target 
ci8es 
e.g. 
Bank 
of 
America 
‘Market 
Presidents’ 
• Internal 
city 
advisory 
func8ons 
e.g. 
KMPG 
Ci8es 
Global 
Centre 
of 
excellence 
• City 
strategies 
e.g. 
Air 
BnB 
• CRM 
to 
manage 
interac8ons 
with 
ci8es 
“Ci:es 
are 
a 
key 
growth 
market 
for 
the 
future. 
By 
e s t a b l i s h i n g 
t h e 
Infrastructure 
& 
Ci:es 
Sector, 
we’re 
c l e a r ly 
g e a r ing 
ourselves 
to 
the 
market. 
We 
have 
the 
porColio, 
the 
know-­‐ 
how 
and 
the 
consul:ng 
exper:se 
to 
make 
ci:es 
of 
all 
sizes 
greener 
and 
more 
compe::ve…..” 
Roland 
Busch, 
Siemens 
Managing 
Board, 
Infrastructure 
& 
Ci0es 
Sector 
CEO 
© 
The 
Business 
of 
Ci8es 
Ltd
Associated trends 
• Tourism 
is 
re-­‐urbanising 
• Retail 
is 
re-­‐urbanising 
• Housing 
is 
re-­‐urbanising 
• The 
Knowledge 
Economy 
is 
re-­‐urbanising 
• Urban 
Real 
Estate 
is 
now 
an 
Investment 
Asset 
Ci8es 
now 
maper 
much 
more 
to 
business 
and 
© 
The 
Business 
of 
Ci8es 
Ltd
So, 
business 
becoming 
more 
interested 
in 
ci8es. 
But 
are 
ci8es 
becoming 
more 
like 
businesses?
Are Cities Like Businesses? 
• Compete 
in 
contested 
markets 
• Innova8ve 
use 
of 
financial 
resources 
• Clearly 
defined 
goals 
• Networking 
• R 
& 
D, 
Innova8on 
and 
Investment 
• Human 
Capital 
• Brand 
• Leadership 
© 
The 
Business 
of 
Ci8es 
Ltd
Are Cities Like Businesses? 
• Ci8es 
are 
under-­‐powered. 
• Ins8tu8onal 
v 
func8onal 
geography 
• Short 
term 
money 
for 
long 
term 
challenges 
• Complex 
governance 
• Cannot 
choose 
‘customers’ 
• Cannot 
choose 
products 
and 
services 
• Risk 
taking 
is 
controlled 
• ‘Profit’ 
is 
retained 
by 
others 
• City 
leaders: 
• democra8cally 
elected 
and 
accountable 
• may 
have 
limited 
power. 
• Iden8ty 
and 
brand 
shaped 
by 
others 
© 
The 
Business 
of 
Ci8es 
Ltd
Cities suffer from wicked problems that 
businesses don’t always have 
v Short-­‐termism 
and 
over 
poli8cised 
ins8tu8ons….. 
Makes 
them 
risk 
averse 
v Fragmented 
jurisdic8on 
that 
limits 
impact 
of 
leadership 
and 
ini8a8ve 
v Limited 
access 
to 
capital, 
low 
investment 
rate 
v Power 
is 
subordinated 
to 
higher 
8ers 
of 
Government 
v Reputa8on, 
Brand, 
and 
Iden8ty 
influenced 
and 
even 
controlled 
from 
outside 
Fortunately, 
well 
organised 
business 
can 
help 
ci8es 
with 
all 
of 
these 
issues.
Three new roles for business in city development. 
Role #1 Business and City Partnerships an Joint Ventures 
Role #2 Cities use Business Management Approaches and 
Tools 
Role #3 Business and City Governance 
© 
The 
Business 
of 
Ci8es 
Ltd
Business Leadership Groups 
• More 
dynamic 
and 
proac8ve 
than 
tradi8onal 
Chambers 
of 
Commerce. 
• Overcome 
constraints 
which 
bind 
city 
authori8es: 
• Think 
beyond 
short 
term 
electoral 
cycles 
• Look 
beyond 
poli8cal 
geography 
/ 
electoral 
boundaries 
• Members 
have 
experience 
in 
branding, 
sales, 
marke8ng, 
agenda 
setng, 
priori8zing 
• Strong 
bargaining 
posi8on 
with 
central 
government 
as 
‘customers’ 
rather 
than 
subordinates. 
• Develop 
strategies 
and 
advocate 
for 
policies 
to 
enhance 
a 
city’s 
compe88veness. 
• O[en 
work 
collabora0vely 
with 
local 
government 
and 
other 
city 
stakeholders 
• Concerned 
with 
making 
contribu8ons 
to 
urban 
and 
metropolitan 
development. 
© 
The 
Business 
of 
Ci8es 
Ltd
City Business Leadership 
Groups
Partnership for New York City 
Inaugurated: 
1979 
Membership 
size: 
200 
Composi8on: 
CEOs 
from 
top 
corporates 
based 
or 
present 
in 
NYC 
Also 
‘Associate 
partners’ 
-­‐ 
CEOs 
of 
small 
businesses, 
agencies 
or 
organiza8ons 
with 
a 
significant 
profile 
in 
the 
city 
(invita8on 
only) 
Coverage: 
City 
Staff: 
President 
and 
CEO 
supported 
by 
five 
Senior 
staff 
members 
Key 
ini8a8ve(s): 
Fiscal 
stability 
Benchmarking 
Subway 
advocacy 
Partnership 
Fund 
for 
New 
York 
City 
-­‐ 
$110m,
London First 
Inaugurated: 
1994 
Membership 
size: 
~ 
200 
Membership 
composi8on: 
Large 
firms 
which 
make 
up 
25% 
of 
London 
GDP 
Coverage: 
Metropolitan 
region 
Staff: 
Board, 
30 
staff 
Revenue: 
£3.8 
to 
£4.1 
million 
Key 
ini8a8ve(s): 
Promote 
London. 
Cross 
rail 
Teach 
First 
Airports 
Housing 
Supply; 
Economic 
Development 
Plan
Barcelona Global 
Membership 
size: 
~200 
Composi8on: 
Business 
leaders 
and 
entrepreneurs 
from 
companies 
which 
make 
up 
the 
majority 
of 
Barcelona’s 
employment. 
Also 
Individuals 
with 
‘reputa8on 
and 
talent’. 
Coverage: 
City 
Staff: 
1 
manager 
co-­‐ordinates 
daily 
work. 
Board 
of 
30 
– 
50 
elected 
members. 
Working 
groups 
drawn 
from 
Board 
have 
responsibility 
for 
specific 
projects. 
Key 
ini8a8ve(s): 
Barcelona 
Open 
Talent, 
Brand 
Barcelona, 
School 
and 
Business 
Postcard 
to 
Business 
Card
Committee for Sydney 
Inaugurated: 
2003 
Membership 
Size: 
~100 
Composi8on: 
Major 
companies, 
universi8es, 
not-­‐for-­‐profits, 
strategically 
significant 
local 
governments 
and 
key 
cultural, 
spor8ng 
and 
marke8ng 
bodies 
Coverage: 
Metropolitan 
region 
Staff: 
14 
Board 
members 
+ 
4 
staff 
Key 
Ini8a8ve(s): 
Sydney 
2054 
Strategic 
Plan 
and 
Vision 
Sydney 
as 
a 
global 
talent 
hub; 
Financial 
Services 
Knowledge 
Hub
Committee for Auckland 
Inaugurated: 
2001 
Membership 
Size 
~ 
80 
Composi8on: 
Chairs 
of 
Boards, 
Directors 
and 
Chief 
Execu8ves 
corpora8ons, 
ter8ary 
and 
not 
for 
profit 
sector 
Coverage: 
Metropolitan 
Region 
Staff: 
Board 
+ 
7 
staff 
Key 
ini8a8ve(s): 
Governance 
reform 
and 
leadership 
of 
the 
region 
Investment 
system 
Future 
Auckland 
Leaders 
Ci8es 
of 
Migra8on 
Auckland 
Anchors
Toronto Board of Trade 
Inaugurated: 
1845 
Membership 
size: 
~12 
000 
members 
Composi8on: 
Major 
firms, 
business 
associa8ons, 
entrepreneurs 
Coverage: 
Metropolitan 
region 
(Greater 
Toronto 
Area) 
Staff: 
11 
Board 
members, 
11 
staff 
on 
execu8ve 
team, 
21 
Advisory 
Council 
members 
Key 
ini8a8ve(s): 
Think 
Twice, 
Vote 
Once; 
Let’s 
Break 
the 
Gridlock; 
Scorecard 
on 
Prosperity.
Berlin Partner 
Inaugurated: 
2005 
Membership 
size: 
236 
(of 
which 
24 
are 
‘science’ 
partners) 
Composi8on: 
Companies, 
scien8fic 
and 
educa8onal 
ins8tu8ons. 
Open 
to 
any 
company 
‘interested 
in 
working 
together 
for 
Berlin’ 
Coverage: 
Metropolitan 
region 
Staff: 
30 
staff 
plus 
supervisory 
board 
of 
10 
members 
Key 
ini8a8ve(s): 
Capital 
City 
Marke8ng 
and 
Brand, 
Business 
Welcome 
Package; 
Business 
Loca8on 
Centre;
And there’s many more…. 
Bombay 
First 
Greater 
Seaple 
Trade 
Development 
Alliance 
Accelerate 
Cape 
Town 
Commipee 
for 
Melbourne 
Tokyo 
Chamber 
Leaders 
AmCham 
Buenos 
Aires 
Stockholm 
Business 
Region 
And 
new 
organisa8ons 
being 
formed 
in 
Sao 
Paulo, 
Madrid, 
and 
many 
more
What 
unique 
contribu8on 
can 
business 
leadership 
and 
membership 
groups 
make? 
i. Regional/Metro 
Vision, 
Plan, 
and 
Collabora8on. 
Engaged 
in 
pan 
regional 
ac8vi8es 
so 
can 
iden8fy 
and 
encourage 
poten8al 
rela8onships 
and 
broaden 
par8cipa8on 
in 
development 
ii. Advocacy 
and 
strategic 
case 
making 
for 
Cataly8c 
ini8a8ves. 
Can 
advocate 
more 
effec8vely 
with 
higher 
8ers 
of 
government 
than 
local 
government 
can 
because 
they 
represent 
‘customers’ 
rather 
than 
‘subordinates’ 
iii. Business 
aprac8on 
and 
reten8on. 
Can 
ar8culate 
the 
aprac8veness 
of 
a 
city 
from 
the 
persuasive 
‘user’ 
perspec8ve 
iv. Bringing 
business 
innova8on 
and 
know-­‐how. 
Can 
add 
value 
by 
introducing 
exper8se 
such 
as 
marke8ng 
and 
financial 
innova8on 
and 
a 
business 
culture 
of 
leanness, 
meanness 
and 
entrepreneurism. 
v. Interna8onal 
perspec8ve. 
Through 
their 
global 
networks 
businesses 
can 
bring 
examples 
of 
best 
prac8ce 
to 
the 
local 
development 
agenda. 
© 
2010 
Greg 
Clark 
28
What 
unique 
contribu8on 
can 
business 
leadership 
groups 
make? 
vi. Communica8on 
and 
Promo8on. 
Seen 
as 
less 
self-­‐serving, 
especially 
by 
the 
media 
vii. Pay 
for 
certain 
ac8vi8es. 
The 
private 
sector 
may 
be 
able 
to 
pay 
for 
things 
local 
government 
may 
not 
e.g. 
celebri8es, 
adver8sing, 
awards, 
editorial 
viii. Cross 
party 
collabora8on. 
Can 
also 
encourage 
cross-­‐party 
and 
bi-­‐par8san 
consensus 
and 
collabora8on 
because 
they 
are 
non 
par8san 
ix. Broker 
wider 
par8cipa8on. 
Broaden 
the 
base 
of 
par8cipa8on 
by 
encouraging 
Universi8es, 
Airports, 
Cultural 
ins8tu8ons 
etc. 
x. Corporate 
Responsibility 
leaders. 
Can 
organise 
this 
on 
a 
large 
scale 
to 
promote 
key 
causes. 
29
What 
role 
for 
business 
groups 
in 
the 
city 
development 
system? 
Nego8ate 
Advocate 
with 
Gov 
Apract 
& 
reten8on 
Reg 
collab 
Bus 
know 
how 
Comms 
& 
media CSR Int 
best 
prac8ce 
Pay 
for 
ac8vi8es 
X 
Party 
collab 
Wider 
par8cip 
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30
10 ‘Secrets’ of Success for Business Leadership 
Groups 
i. Combine 
long 
term 
vision 
view 
and 
short 
term 
tac8cs. 
ii. Business 
culture. 
Economics, 
compe88veness, 
brand, 
produc8vity, 
ac8on, 
measurement, 
RoI, 
managed 
risk. 
Opportunity 
focussed. 
iii. Focus 
on 
city 
needs 
rather 
than 
narrow 
business 
needs. 
Not 
rent 
seeking. 
Not 
a 
lobby 
for 
business 
but 
a 
lobby 
of 
businesses. 
iv. Broad 
base 
of 
sectors, 
not 
just 
real 
estate, 
or 
finance, 
or 
lawyers, 
or 
retailers, 
or 
hospitality, 
energy, 
IT, 
etc. 
v. Apoli8cal 
and 
able 
to 
face 
in 
all 
direc8ons. 
vi. Not 
publicly 
subsidised 
(not 
tax 
payers 
money). 
vii. Leverage 
business 
skills, 
innova8ons, 
and 
leadership. 
Show 
how. 
viii. Posi8oning: 
customers, 
investors, 
employers, 
not 
subs8tutes, 
subordinates, 
or 
subversives. 
ix. Priori8sa8on 
of 
the 
major 
catalysts, 
but 
not 
fe8shes 
or 
favouri8sm. 
x. Evidence 
led, 
not 
ideology.
www.ci8esandregions.com 
32
within every very successful 
city is well organised 
business leadership 
Good 
Luck 
Pro-­‐Bogota

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1 er Encuentro ProBogotá Region Greg Clark Metropolitan Business Leadership Groups proBogotá

  • 1. The Business of Cities and Metropolitan Business Leadership Organisations Greg Clark Pro-­‐Bogota November 2014
  • 2. Cities and Business – A Rapidly Evolving Relationship Ci8es and commerce have always been inextricably linked ….. ….. but rapid and con8nuing urbanisa8on and globalisa8on are changing the bonds between the two. © The Business of Ci8es Ltd
  • 3. Trend 1 Ci8es are Emerging Markets for Businesses Trend 2 Businesses are (Re)Urbanising Trend 3 The rise of Tradable Urban Services Trend 4 Businesses rebranding for city markets and consumers Trend 5 Ci8es are Hubs of Business Innova8on trend 6 Businesses are restructuring to meet City goals © The Business of Ci8es Ltd
  • 4. Ci8es are Emerging Markets for Businesses • Size of the global metropolitan market • 70% of world popula8on of 9 billion by 2050 • 70 million people per year added to developing world ci8es • 2 billion strong ‘consumer class’ in emerging market ci8es by 2025 World’s Urban Popula0on in 2050 Source: UNICEF © The Business of Ci8es Ltd
  • 5. Ci8es are Emerging Markets for Businesses • Shi[ in nature of economies and products • Technology is shi[ing which sectors globalise and how they do so • Growth of service economies encourages commercialisa8on of urban space • Ci8es are the natural habitat of innova8on (Glaeser, Florida, Hollis, Katz) • Customers of increasing importance • Expansion, upgrading, replacement of infrastructure = €27 trillion over next 25 years (Booz Allen Hamilton) • Smart Ci8es market = $400 billion by 2020 (UK government) • Building and retrofit – demand for advanced technology and innova8ons in design, finance, and delivery of city systems • Purchasers of huge range of services from legal advice to landscaping © The Business of Ci8es Ltd
  • 6. Why are businesses moving back to the city? Demographics and lifestyle Access to Talent and networks Transport and safety and educa8on Improvements Changing Working Prac8ces Sustainability Concerns Policy-­‐driven and market incen8ves (eg trade) Technological Advances Opportuni8es to collaborate © The Business of Ci8es Ltd Businesses are (Re)Urbanising Agglomera8on effects are much bigger in growth sectors and globalising sectors
  • 7. Rise of Tradable Urban Services • Industries which support city building and growth have become important tradable economic clusters e.g. Planning, architecture, design, energy, water, infrastructure, engineering, waste management, housing development. • Businesses emerged to meet the urbanisa8on needs of (now) mature ci8es. • Now, rapidly interna8onalising to support the growth of emerging ci8es. Sydney: Engineering and Construc8on to Dubai and Abu Dhabi London: Architecture and Urban Design Worldwide Paris: Water, Waste and Energy to African ci8es Masdar City, Foster + Co Masterplan Zaha Hadid deisgn for Abu Dhabi Performing Arts Centre © The Business of Ci8es Ltd
  • 8. Business Brands in City Markets Sustainability / Eco-­‐Ci0es Siemens GE Arup Bombardier The ‘City of the Future’ Audi Deutsche Bank Microso[ Atkins GDF Suez Liveability Mercer Monocle Grosvenor Global Ci0es JP Morgan Aecom AT Kearney Smart Ci0es + Networks Cisco Ericsson IBM Cap Gemini Bird + Bird © The Business of Ci8es Ltd
  • 9. Cities are Hubs of Business Innovation Urban Spaces Encourage Business Knowledge Networks to Form Why? • Density – brings businesses together for idea exchange • Assets – developed transport and comms networks enable increased business contact • Ins8tu8ons – (Universi8es, incubators, development agencies) overcome co-­‐ordina8on problems and sustain networks Examples • Tech – Lisbon, London, Tel Aviv, Berlin, Amsterdam, Nairobi • Fashion – New York, London, Amsterdam, Milan • Life Sciences – Dundee, Dortmund, Boston • Crea8ve and Media – Seoul, Manchester, Shanghai, Lagos © The Business of Ci8es Ltd
  • 10. Cities are Hubs of Business Innovation Cities as Test Markets • The most cosmopolitan ci8es are microcosms of the global market – ideal loca8ons for developing / trialling products • Some ci8es promote their role as regional test markets -­‐ Invest in Brussels: city representa8ve of the European Market -­‐ Jakarta – densely populated, high consumer confidence, tes8ng ground for emerging markets • Others have become renowned as na8onal test markets -­‐ Columbus, Ohio – US fast food -­‐ Bangalore – product tes8ng for Indian market • Diverse labour forces develop content which translates across cultural barriers © The Business of Ci8es Ltd
  • 11. Corporate Urbanising Structure: Internal Reorganisation • Ci8es divisions e.g. Siemens ‘Infrastructure and Ci8es’ sector • Representa8ves in target ci8es e.g. Bank of America ‘Market Presidents’ • Internal city advisory func8ons e.g. KMPG Ci8es Global Centre of excellence • City strategies e.g. Air BnB • CRM to manage interac8ons with ci8es “Ci:es are a key growth market for the future. By e s t a b l i s h i n g t h e Infrastructure & Ci:es Sector, we’re c l e a r ly g e a r ing ourselves to the market. We have the porColio, the know-­‐ how and the consul:ng exper:se to make ci:es of all sizes greener and more compe::ve…..” Roland Busch, Siemens Managing Board, Infrastructure & Ci0es Sector CEO © The Business of Ci8es Ltd
  • 12. Associated trends • Tourism is re-­‐urbanising • Retail is re-­‐urbanising • Housing is re-­‐urbanising • The Knowledge Economy is re-­‐urbanising • Urban Real Estate is now an Investment Asset Ci8es now maper much more to business and © The Business of Ci8es Ltd
  • 13. So, business becoming more interested in ci8es. But are ci8es becoming more like businesses?
  • 14. Are Cities Like Businesses? • Compete in contested markets • Innova8ve use of financial resources • Clearly defined goals • Networking • R & D, Innova8on and Investment • Human Capital • Brand • Leadership © The Business of Ci8es Ltd
  • 15. Are Cities Like Businesses? • Ci8es are under-­‐powered. • Ins8tu8onal v func8onal geography • Short term money for long term challenges • Complex governance • Cannot choose ‘customers’ • Cannot choose products and services • Risk taking is controlled • ‘Profit’ is retained by others • City leaders: • democra8cally elected and accountable • may have limited power. • Iden8ty and brand shaped by others © The Business of Ci8es Ltd
  • 16. Cities suffer from wicked problems that businesses don’t always have v Short-­‐termism and over poli8cised ins8tu8ons….. Makes them risk averse v Fragmented jurisdic8on that limits impact of leadership and ini8a8ve v Limited access to capital, low investment rate v Power is subordinated to higher 8ers of Government v Reputa8on, Brand, and Iden8ty influenced and even controlled from outside Fortunately, well organised business can help ci8es with all of these issues.
  • 17. Three new roles for business in city development. Role #1 Business and City Partnerships an Joint Ventures Role #2 Cities use Business Management Approaches and Tools Role #3 Business and City Governance © The Business of Ci8es Ltd
  • 18. Business Leadership Groups • More dynamic and proac8ve than tradi8onal Chambers of Commerce. • Overcome constraints which bind city authori8es: • Think beyond short term electoral cycles • Look beyond poli8cal geography / electoral boundaries • Members have experience in branding, sales, marke8ng, agenda setng, priori8zing • Strong bargaining posi8on with central government as ‘customers’ rather than subordinates. • Develop strategies and advocate for policies to enhance a city’s compe88veness. • O[en work collabora0vely with local government and other city stakeholders • Concerned with making contribu8ons to urban and metropolitan development. © The Business of Ci8es Ltd
  • 20. Partnership for New York City Inaugurated: 1979 Membership size: 200 Composi8on: CEOs from top corporates based or present in NYC Also ‘Associate partners’ -­‐ CEOs of small businesses, agencies or organiza8ons with a significant profile in the city (invita8on only) Coverage: City Staff: President and CEO supported by five Senior staff members Key ini8a8ve(s): Fiscal stability Benchmarking Subway advocacy Partnership Fund for New York City -­‐ $110m,
  • 21. London First Inaugurated: 1994 Membership size: ~ 200 Membership composi8on: Large firms which make up 25% of London GDP Coverage: Metropolitan region Staff: Board, 30 staff Revenue: £3.8 to £4.1 million Key ini8a8ve(s): Promote London. Cross rail Teach First Airports Housing Supply; Economic Development Plan
  • 22. Barcelona Global Membership size: ~200 Composi8on: Business leaders and entrepreneurs from companies which make up the majority of Barcelona’s employment. Also Individuals with ‘reputa8on and talent’. Coverage: City Staff: 1 manager co-­‐ordinates daily work. Board of 30 – 50 elected members. Working groups drawn from Board have responsibility for specific projects. Key ini8a8ve(s): Barcelona Open Talent, Brand Barcelona, School and Business Postcard to Business Card
  • 23. Committee for Sydney Inaugurated: 2003 Membership Size: ~100 Composi8on: Major companies, universi8es, not-­‐for-­‐profits, strategically significant local governments and key cultural, spor8ng and marke8ng bodies Coverage: Metropolitan region Staff: 14 Board members + 4 staff Key Ini8a8ve(s): Sydney 2054 Strategic Plan and Vision Sydney as a global talent hub; Financial Services Knowledge Hub
  • 24. Committee for Auckland Inaugurated: 2001 Membership Size ~ 80 Composi8on: Chairs of Boards, Directors and Chief Execu8ves corpora8ons, ter8ary and not for profit sector Coverage: Metropolitan Region Staff: Board + 7 staff Key ini8a8ve(s): Governance reform and leadership of the region Investment system Future Auckland Leaders Ci8es of Migra8on Auckland Anchors
  • 25. Toronto Board of Trade Inaugurated: 1845 Membership size: ~12 000 members Composi8on: Major firms, business associa8ons, entrepreneurs Coverage: Metropolitan region (Greater Toronto Area) Staff: 11 Board members, 11 staff on execu8ve team, 21 Advisory Council members Key ini8a8ve(s): Think Twice, Vote Once; Let’s Break the Gridlock; Scorecard on Prosperity.
  • 26. Berlin Partner Inaugurated: 2005 Membership size: 236 (of which 24 are ‘science’ partners) Composi8on: Companies, scien8fic and educa8onal ins8tu8ons. Open to any company ‘interested in working together for Berlin’ Coverage: Metropolitan region Staff: 30 staff plus supervisory board of 10 members Key ini8a8ve(s): Capital City Marke8ng and Brand, Business Welcome Package; Business Loca8on Centre;
  • 27. And there’s many more…. Bombay First Greater Seaple Trade Development Alliance Accelerate Cape Town Commipee for Melbourne Tokyo Chamber Leaders AmCham Buenos Aires Stockholm Business Region And new organisa8ons being formed in Sao Paulo, Madrid, and many more
  • 28. What unique contribu8on can business leadership and membership groups make? i. Regional/Metro Vision, Plan, and Collabora8on. Engaged in pan regional ac8vi8es so can iden8fy and encourage poten8al rela8onships and broaden par8cipa8on in development ii. Advocacy and strategic case making for Cataly8c ini8a8ves. Can advocate more effec8vely with higher 8ers of government than local government can because they represent ‘customers’ rather than ‘subordinates’ iii. Business aprac8on and reten8on. Can ar8culate the aprac8veness of a city from the persuasive ‘user’ perspec8ve iv. Bringing business innova8on and know-­‐how. Can add value by introducing exper8se such as marke8ng and financial innova8on and a business culture of leanness, meanness and entrepreneurism. v. Interna8onal perspec8ve. Through their global networks businesses can bring examples of best prac8ce to the local development agenda. © 2010 Greg Clark 28
  • 29. What unique contribu8on can business leadership groups make? vi. Communica8on and Promo8on. Seen as less self-­‐serving, especially by the media vii. Pay for certain ac8vi8es. The private sector may be able to pay for things local government may not e.g. celebri8es, adver8sing, awards, editorial viii. Cross party collabora8on. Can also encourage cross-­‐party and bi-­‐par8san consensus and collabora8on because they are non par8san ix. Broker wider par8cipa8on. Broaden the base of par8cipa8on by encouraging Universi8es, Airports, Cultural ins8tu8ons etc. x. Corporate Responsibility leaders. Can organise this on a large scale to promote key causes. 29
  • 30. What role for business groups in the city development system? Nego8ate Advocate with Gov Apract & reten8on Reg collab Bus know how Comms & media CSR Int best prac8ce Pay for ac8vi8es X Party collab Wider par8cip üüü üü üü üüü üüü ü üü üü üüü üü üüü ü üü ü üü ü ü ü üü üü üüü üüü üü üüü üüü üü üü üü üü üüü üü üü üüü üüü üü ü üü ü üü üüü üüü üü ü üüü üü üüü üü üüü üü üü üü üüü üüü üüü üüü ü üüü üü üü üü ü üüü üüü üüü üü ü üüü üü üü üü ü üüü üü üüü üü ü üü üü üü üü ü üüü ü üü üüü üü üü üü üüü üüü üüü üü üü üüü üü üü üü üü üüü üü üüü üü üüü üü üüü üü ü üü üü ü 30
  • 31. 10 ‘Secrets’ of Success for Business Leadership Groups i. Combine long term vision view and short term tac8cs. ii. Business culture. Economics, compe88veness, brand, produc8vity, ac8on, measurement, RoI, managed risk. Opportunity focussed. iii. Focus on city needs rather than narrow business needs. Not rent seeking. Not a lobby for business but a lobby of businesses. iv. Broad base of sectors, not just real estate, or finance, or lawyers, or retailers, or hospitality, energy, IT, etc. v. Apoli8cal and able to face in all direc8ons. vi. Not publicly subsidised (not tax payers money). vii. Leverage business skills, innova8ons, and leadership. Show how. viii. Posi8oning: customers, investors, employers, not subs8tutes, subordinates, or subversives. ix. Priori8sa8on of the major catalysts, but not fe8shes or favouri8sm. x. Evidence led, not ideology.
  • 33. within every very successful city is well organised business leadership Good Luck Pro-­‐Bogota