mckinsey-fullreport.pdf

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munity and
Economic Development in Minneapolis
CITY OF MINNEAPOLIS
Summary of Findings
June 14, 2002
This material was used by McKinsey & Company during an oral
presentation; it is not plete record of the discussion. 0
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EXECUTIVE SUMMARY
Minneapolis faces five critical challenges related munity and economic development
• Over the last decade, housing affordability and availability have decreased, and job growth lagged the suburbs and the national average. Housing and
job creation should be designated top priorities for city resources and investments, and should be the primary drivers of city development
• Transportation, education, munity building are also critical priorities, and – while not the focus of the city’s resources and investments – the
city must track the progress of accountable entities and keep these priorities in mind when designing its own investments and programs
We identified nine major issues the city must address to improve munity and economic development situation
1. The city’s current financial situation and previous development results suggest that Minneapolis will be unable to meet its development priorities using
current development approaches
2. City leadership has not been strong and consistent in setting strategy, making project decisions, and managing the execution of its vision
3. The current approach to development lacks key elements for ess, including clear priorities and measurable short and long term goals
4. The current spending strategy focuses on physical (. real estate) development, neglecting other attractive approaches, levers and tools
5. The city lacks a number of clear development management processes (. project prioritization, development budgeting, strategic planning)
6. Development planning is fragmented across many city entities
7. The city’s anizational structure results in a lack of accountability for meeting citywide goals and targets