THE PACE GROUP PLACES
ANOTHER EXECUTIVE
IN KENTUCKY

Situation Analysis

The Kentucky Cabinet for Economic Development conducted a national search to identify a specialized economic development professional to provide vision, leadership, and consensus building for their Department of Commercialization and Innovation in Frankfort, Kentucky.

The Department of Commercialization and Innovation

The Department of Commercialization and Innovation specializes in New Economy Economic Development for the Commonwealth. The Department works hand in hand with the major research universities within the state to create knowledge based jobs as well as provide the needed infrastructure and environment for these various industries to succeed.

Process Outline

January 10: The PACE Group Pitches Services to the Kentucky Economic Development Cabinet.

The PACE Group presents their services and experience to the Cabinet Secretary, Chief of Staff, and General Council.

January 26: KEDC Selects The PACE Group for Their Executive Search.

February 7, 8, 9, 17, and 18: PACE Creates Needs Assessment.

The PACE Group interviews over 20 leaders including members of the Economic Development Cabinet, Governor’s Office, University of Kentucky President, University of Louisville President, other University leaders, and members of the Economic Development Partnership Board which oversees the Kentucky Cabinet for Economic Development, to create the Needs Assessment.

March 1: PACE Presents the Needs assessment.

The PACE Group provides the needs assessment to Gene Strong, Cabinet Secretary of the Economic Development Cabinet in a written report and discusses the details during a presentation. The needs assessment consists of charts and summaries of the information learned from the interviews. PACE also presents an organizational overview, community profile, and detailed job description.

PACE obtains feedback on this material and observes as the Secretary discusses specific issues and fine tunes his desires and needs for the next Commissioner. This discussion allows the organization to come to solid conclusions about the job responsibilities and required qualifications for the position. The PACE Group then revises the job description so it is tailored to the KEDC specific needs and desires. PACE also receives approval to use the presented materials to market the position and recruit the best candidates in a national search.

April 7: PACE Presents Four Finalists.

PACE provides resumes, pre-interview responses, and interview responses for the four candidates. PACE provides these materials in a binder for each selection committee member and elaborates on each candidate during a formal presentation. The committee is able to ask many professional and personal questions regarding the candidates. The committee also has the opportunity to request for PACE to return to the market in search of more candidates, but the committee is pleased with the finalists and decides to bring in all four candidates for site visits and interviews.

PACE works with the committee to create a solid and consistent formal interview schedule.

April 11: KEDC First Round Interviews/Site Visits.

KEDC decides to bring two candidates back for a second round to meet with the Cabinet Secretary and Kentucky Governor Ernie Fletcher.

April 24-26: KEDC Second Round Interview.

The selected candidates are brought in for second round interviews. KEDC decides to make formal offer to the candidate, and negotiations begin with PACE assistance.

June 8: Kentucky Governor Announces New Commissioner.

Kentucky Governor Ernie Fletcher announces, in a press release, the hire of Deborah Clayton, founding Director of the Charlotte, NC Research Institute, as the new Commissioner of the Department of Commercialization and Innovation.

Keys to This Successful Search

1. Strong Leadership – Private, Public and Academic.

The Kentucky Cabinet for Economic Development and their partners on this executive search committee was made up of very strong leaders—leaders, who are dedicated to the Commonwealth, are extremely well respected throughout the state, and who are focused on common goals. Secretary Gene Strong lead a collaborative effort though he was not required by statutes or regulations to do so. Through Secretary Strong’s and Governor Fletcher’s leadership each of the major research Universities as well as leaders from private industry were brought to the table. They made sure everyone voiced their opinion and then worked to summarize the overall need. They also clearly voiced their goals and expectations for The PACE Group.

2. Consensus Building.

PACE conducted over 20 interviews to ensure everyone had the opportunity to voice their opinion at the beginning of the search. The PACE Group believes “if you are not in on it and up on it; you will be down on it.” The selection committee made sure that PACE interviewed all of the proper partners even though it took two trips to accomplish. Each search is different, and PACE takes pride in obtaining the right fit for each client.

3. All Four Finalists Were Recruited and Did Not Apply.

All were employed. Each candidate had to be sold on Kentucky. One candidate was from Mississippi, one from Utah, one from Iowa, and the selected candidate was from North Carolina, where she ran the research institute on the campus of University of North Carolina at Charlotte. PACE found all candidates through their proprietary network and aggressively pursued each candidate.

4. Selected Candidate With a Diverse Background.

The leading candidate had a great deal of experience in both the university and private industry settings. She had experience dealing with CEO’s and academics. She also had experience closing deals that created jobs. In this new area of economic development it can be difficult to find intellectual property projects that actually lead to job creation. This experience accompanied by tremendous people skills made her and idea candidate.

5. Innovative Program and Flexibility.

“New Economy” Economic Development is still in its infancy stage across the United States. Kentucky and its leadership have realized the opportunities that lie within this sector and have actually united the universities, private industry, and government to accomplish one unified goals. It has not been left up to each university but everyone in the state. The opportunity to also form her own team was a real selling point to the leading candidate. Things were not set in stone and the leadership realized they needed to let the right person work with them to get all of the proper tools in place.

Commonwealth of Kentucky
Cabinet for Economic Development

ERNIE FLETCHER Governor	Old Capitol Annex 300 West Broadway Frankfort, KY 40601	MARVIN E. STRONG, JR. Secretary
June 8^th, 2005 For Immediate Release		Contact: Mandy Lambert 502-564-7670

GOVERNOR ERNIE FLETCHER NAMES NEW COMMISSIONER OF THE DEPARTMENT OF COMMERCIALIZATION AND INNOVATION

Frankfort, Ky. -- Following a national search led by the PACE Group, an executive search firm, Governor Ernie Fletcher has nominated Deborah L. Clayton as the new commissioner of the Department of Commercialization and Innovation (DCI).

Cabinet for Economic Development Secretary Gene Strong has recommended the appointment of Clayton to the Kentucky Economic Development Partnership, which must be approved by their Executive Committee and also reviewed by the Government Contract Review Committee at their next meeting June 14.

"Deborah Clayton brings a strong background in research and development as we seek to bring more high-tech companies and jobs to Kentucky's growing economy," Governor Fletcher said. "Her expertise in combining academic and corporate interests to create high-tech economic opportunities will be an asset in this position."

Deborah Clayton most recently served as the founding executive director for the Charlotte Research Institute (CRI) at the University of North Carolina at Charlotte, where she established an internationally recognized research institute. She was selected as one of the Charlotte Business Journal's 2004 Top Women in Business.

Prior to that, Clayton served as manager of operations at Argonne National Laboratory in Argonne, Ill., associate manager of corporate research with the Department of Energy and co-founder of a high-tech research and development company -- Orchid One Corporation in Illinois.

"I am honored to be recommended as the commissioner of the Department of Commercialization and Innovation," Clayton said. "Considering existing state resources, including available funding, intellectual capital, state of the art facilities, and strong support from Governor Fletcher and Secretary Strong, I anticipate an enhanced sense of partnership and collaborative spirit that will allow me to accomplish this task. I look forward to contributing to the economic growth of Kentucky."

DCI was formerly known as the Office of the New Economy. The Commissioner's responsibilities include development of a knowledge-based economy strategy, oversight of the modernization initiative, recruitment of research and development companies and attraction of high-technology research and development centers. The Commissioner will also work closely with educators state-wide.

"The Department of Commercialization and Innovation is vital to Kentucky's economic future and especially the linkage between higher education and the economy. Deborah Clayton is bringing some exciting ideas and a sense of collaboration that should enhance the relationship between the state's economic activities and our university," said University of Louisville President James R. Ramsey. "I look forward to working with Deborah to promote economic opportunities for the citizens of Kentucky."

"It's exciting to have someone with Deborah Clayton's depth and breadth of experiences in such an important role for Kentucky's future," said UK President Lee T. Todd Jr. "Kentucky's economic future depends on our ability to create sustainable and innovative high-tech jobs. I applaud Gov. Fletcher's commitment to this important initiative."

"The Cabinet was presented with several outstanding candidates for this job," stated Secretary Strong. "Deborah's strong background in research, education and commercialization made her the top choice. We look forward to her joining the Cabinet and know she has the experience and skills to take Kentucky to the next level."

Subject to approval by the Government Contract Review Subcommittee and the Kentucky Economic Development Partnership, Clayton will begin her duties as commissioner on July 1, 2005.

The Kentucky Cabinet for Economic Development is the primary state agency in Kentucky responsible for creating new jobs and new investment in the state. New business investment in Kentucky in 2004 totaled nearly $2.3 billion with the creation of just over 16,600 new jobs. Information on available development sites, workforce training, incentive programs, community profiles, small business development and other resources is available at http://www.thinkkentucky.com/.