Transcription
London & Partners’2019/20 Business PlanMarch 2019
Contents1.2.3.4.5.6.7.8.9.10.11.Executive summaryFrom strategy to business planOutcomesBrexit prioritiesCore markets prioritiesSectors & growth prioritiesPartnerships and commercial prioritiesTransitioning and governing the organisationBudgetKey milestonesAnnex (Methodology for measuring perception and engagement)London & Partners’ 2018-2021 strategy sets the direction for the years ahead. ThisBusiness Plan explains how we will put the strategy into action in 2019/20 andhighlights priorities for the coming year.2
Section 1Executive summary
Who we areWhat we doInternational promotional companyfor LondonSupporting the Mayor’s priorities bypromoting London internationally asa leading world city in which toinvest, work, study and visit.Not-for-profit companyHalf funded by Greater LondonAuthority, half from other sourcesincluding commercial activity.Trade and GrowthInward InvestmentMajor EventsBusiness TourismHigher Education &TalentLeisure TourismLondon’s global reputation4
What we do and how we measure itInward InvestmentTrade & Business GrowthOutcome Metric: Additional economic benefit (GVA, m)We convince and support internationalbusinesses to expand into London; andsupport existing investors to grow in London.We support London-based start-ups and scaleups to grow and internationalise through twoprogrammes: Mayor’s International BusinessProgramme and Business Growth Programme.5
What we do and how we measure itBusiness TourismMajor EventsOutcome Metrics: Additional economic benefit (GVA, m); engagement and perceptionchange from major eventsWe convince and support internationalcorporate events and conventions to takeplace in London.We convince and support major consumerevents (such as sporting events and festivals)to take place in London.6
What we do and how we measure itLeisure TourismHigher EducationLondon’s brand/reputationOutcome Metrics: Engagements,perception changeOutcome Metrics: Additional economicbenefit (GVA), engagementsOutcome Metrics: Engagements, perceptionchangeWe work with tourism industry partners toattract tourists to visit London.We work with London universities to attractinternational students to London.We build London’s global reputation with ourtarget audiences7
Strategy 2018 – 2021: More Focus1WhereOn core markets: North America, India, China, France andGermany.2WhoOn audiences (businesses, visitors and students) who willhelp us achieve our outcomes: younger, first-timers who willbring the most lifetime value and businesses who willgenerate good growth for London.WhatOn the sectors where London is strongest and will benefitthe most: Finance and Business Services Tech (FBST) Innovation & Life Sciences Creative Urban Tourism34When5HowBy working in partnership with organisations and peoplewho have a stake in London’s promotion.6KeepOn retaining businesses and talent who may be affectedby Brexit.On reaching people earlier in their decision making so wecan influence them to choose London.8
Strategy 2018 – 2021: Progress and Next StepsYEAR 1: 2018/19YEAR 2: 2019/20YEAR 3: 2020/21[see Section 2]Started to shift resourcestowards strategicpriorities.Continue to shift resourcestowards strategic prioritiesComplete shift ofresources towardsstrategic prioritiesOutcomesAchieved targetsAchieve outcome targetsAchieve outcome targets[see Section 3]Developed newoutcomes metricsBusinessTransformationRestructure; leadershipteams; reward; launchnew international marketteamsTechnology transformation;decision-making; culture,engagement and inclusionEmbed technology;culture, engagement andinclusion; data & analyticsResource allocation[see Section 8]9
Priorities, Activity Highlights and Targets for 2019/20Inward InvestmentTrade & Business GrowthExpected contribution to 175m GVA target: 111m in additional economic benefit (GVA)Focus on core marketsFocus on priority sectors500 new companies to be supported across twoprogrammes12 trade missions plannedWork with existing investors to grow in London10
Priorities, Activity Highlights and Targets for 2019/20Business TourismMajor EventsExpected contribution to 175m GVA target: 64m in additional economic benefit (GVA)Trade shows including IMEX, IBTM/ MeetingsShowMarketing campaign targeting US incentive tripmarket, joint with ParisDevelop sales activity in ChinaUse Cricket World Cup to reach Indian audiencesUse American football (NFL), NBA (basketball), MLB(baseball) London games to reach US audiencesBid to host future events in London11
Priorities, Activity Highlights and Targets for 2019/20Leisure TourismTarget: 17m engagements, 8% perceptionTargeting US millennial first-time visitors: jointcampaign with ParisTargeting Chinese millennial first-time visitors:working with Chinese online travel agentsVisitLondon website, social channels, appHigher EducationTarget: 15m GVA, 1m engagementsSummer Schools campaignStudent Welcome campaignLondon’s brand/reputationTarget: 48m engagements, 4% perceptionWorking through a global network of businessinfluencers to share a positive narrative aboutLondon’s futureFocus on modernizing London’s brand in ChinaUse major events to promote London’s brand12
Section 2From strategy tobusiness plan
In 2018 we set out an ambitious three-year strategy to win jobs and goodgrowth for London in an increasingly challenging global environment.We have created a renewed organisation with the structure and skills tosucceed, including a new geographic and sectoral focus in the areaswhich we believe have the biggest opportunities for good growth.ThreeyearstrategicdirectionWe committed to intervening earlier in people’s decision making so thatwe can maximise the chances of them choosing London to invest, work,study or visit.We have entered a new era and are, at the point of writing, three quarters ofthe first year into delivering that bold strategy for London.And we have continued to perform strongly against our targets.Our Business Plan for Year Two shows an organisation fully pivotedtowards delivery.14
London & Partners’MissionLondon & Partners is the Mayor of London's official promotional company.We exist to support the Mayor’s priorities by promoting London internationallyas a leading world city in which to invest, work, study and visit.Our work helps achieve good growth for London and Londoners, as outlined inthe Mayor’s economic development strategy.We do this by: Building London's international reputation . Attracting international audiences and convincing them to choose London. Guiding international audiences to make the most of all that London has tooffer. Helping to retain and grow London’s businesses.We tell London's story brilliantly to an international audience and we do this inpartnership with organisations and people who have a stake in London'sinternational promotion.15
Alignment with the Mayor’s priorities todeliver good growth for LondonOur work with international audiences will contribute good growth for London and Londoners: Retention of international business in London by influencing the balance of locationdecision making for businesses and working with partners including the GLA to encourage theretention of jobs and talent. Attracting and growing businesses in the sectors which will create jobs for the future and drivemore inclusive, sustainable growth by winning high value inward investment, and developingLondon’s biggest export potential scaleups. Growth in the tourism industry where there is capacity by encouraging first time, culturallyengaged visitors to choose London and to experience a wide range of attractions across the city. A diverse cultural scene, supported by increased visitor spend in a wider range of institutions,including by promoting aspects of London’s diverse cultural scene relevant to internationalaudiences. Attracting international students who support London’s universities and who can go on to workin our businesses, or go on to found the next generation of global success stories. To do this we will work closely with the GLA to tell London’s story brilliantly to internationalaudiences by building London’s reputation with a confident, credible and exciting vision forthe longer term future of our city.16
Strategy 2018 – 2021: More Focus1WhereOn core markets: North America, India, China, France andGermany.2WhoOn audiences (businesses, visitors and students) who willhelp us achieve our outcomes: younger, first-timers who willbring the most lifetime value and businesses who willgenerate good growth for London.WhatOn the sectors where London is strongest and will benefitthe most: Finance and Business Services Tech (FBST) Innovation & Life Sciences Creative Urban Tourism34When5HowBy working in partnership with organisations and peoplewho have a stake in London’s promotion.6KeepOn retaining businesses and talent who may be affectedby Brexit.On reaching people earlier in their decision making so wecan influence them to choose London.17
Strategic resource allocation (1/2)We are changing our resource allocation to support our new strategy and have made strong progress. In this BusinessPlan we move further towards our final allocation.Investing in core marketsInvesting to influence decisionsWe will increase the share of spend in coremarkets to 80% by 2020/21. In this BusinessPlan we will achieve 73%.We will increase the share of investment on influencingprior to a decision to come to London is made to 80% by2020/21. In this Business Plan we will achieve 75%.18
Strategic resource allocation (2/2)We are changing our resource allocation to support our new strategy, and have made strong progress. In this BusinessPlan we move further towards our final allocation.Investing in London’s global brandLondon vs Overseas Headcount2017/188%LondonWe will increase the share of marketing spend onpromoting London’s overall brand and reputation to 40%by 2020/21. In this Business Plan we will achieve 30%.2019/2015%OverseasLondonOverseasOur restructure has enabled us to achieved our 2020/21overseas headcount target already in 2019/20. It is now15% compared to 8% in 2017/18.19
This Business Plan was written three quarters into a three-year strategysetting a significantly more focussed direction for the organisation. In thisperiod, we have:Our firstyear ofdeliveringagainstthe 3-yearstrategy Achieved our year-to-date GVA targets. Restructured the organisation so that it is ready to deliver the strategy. Significantly increased our global footprint, putting teams in Paris, Berlin,Bangalore, Shenzhen, Toronto and Chicago for the first time. Organised around the sectors we have identified as highest potential,bringing together our work on inward investment, business growth, tradeand business tourism in these sectors. Worked to retain and grow businesses in the context of Brexit, with aparticular focus on giving businesses impartial advice on access to talent. Created the marketing infrastructure to communicate positive messagesabout London’s future, to our target audiences, at speed, through anetwork of senior international influencers.20
KDD in LondonCase study - bringing business tourism to LondonIn 2018 London welcomed 3,300 delegates for the global dataconference Knowledge Discovery and Data Mining to the city.It was the first time this conference has come to London – and it waswon for the city in a competitive process by London & Partners incollaboration with the Barbican, City of London and Hackney Council.The event grew from an initial 1500 delegates to over 3000, whichmeant it had to be moved to the ExCel from its initial planned Barbicanlocation. It attracted record sponsorship of 1.2 million from more than50 companies for the organisers, and brought 7.7 million in GVA toLondon."KDD 2018 was a huge success, and we managed to significantly exceed both ourattendee and sponsorship records. I have no doubt that was made possible due toour London location, the professional services offered to us by ExCel and thesupport of London & Partners."Douglas McIlwraith, Local Chair for KDD 201821
Stitch Fix in LondonCase study – bringing inward investment to LondonStitch Fix is an online artificial intelligence powered fashion retailer. In2018, they announced their first expansion outside the US, by settingup an office in London.London & Partners helped Stitch Fix choose London for their Europeanbase by providing research on the set-up costs in different cities andintroducing them to London firms who could provide services fromlegal to office search. We expect the company to employ 250Londoners by year three.The team was helpful in connecting us with existing businesses in London to serveas advisers as we figured out how to build out our operations. The costbenchmarks the London & Partners’ team provided relative to other cities inEurope helped us vet London vs. other markets.Stitch Fix22
Seenit win through the Mayor’s International Business ProgrammeCase study - supporting London businesses to exportThe Mayor’s International Business Programme provides mentoring,expert advice and real business opportunities for high-growthcompanies in the life sciences, technology and urban sectors.It is run by London & Partners to focus specifically on firms which havethe potential to deliver good growth and high-quality jobs through trade.Since the programme was founded, our MIBP businesses have seen 130 million in investment, created over 600 jobs and won 19.8 millionin business.Our recent cohort included Seenit, a video production app. As part ofthe programme, they took part in a ‘meet the corporate’ event in Londonwhere they had the opportunity to pitch to senior leadership atUniversal. The result was a trial and a contract for over 100 million.23
London – Paris – a unique city to citymarketing partnershipAttracting first-time leisure visitors to Paris and London Audience: A campaign to inspir
working with Chinese online travel agents VisitLondon website, social channels, app Target: 15m GVA, 1m engagements Summer Schools campaign Student Welcome campaign Priorities, Activity Highlights and Targets for 2019/20 Leisure Tourism Higher Education London’s brand/reputation 12. Section 2 From strategy to business plan . Three year strategic direction In 2018 we set out an ambitious .
