Cluster Development - Step 1
 As previously indicated in this blog, the fact is that just about any business in any region can benefit form collaborative clustering (or cluster development).
If you are convinced of that, then the next question is how can we go about developing ‘clusters’, particularly in the face of existing competition.
In relation to competitive clusters, the answer lies largely in one word – GOODWILL!
It is only once sufficient goodwill has been established that competitive businesses will be willing to even consider working together to grow the 'whole pie'.
Cluster Development - The 5 Steps
With that overarching idea in mind, here are 5 steps for cluster development.
Step 1 – Assessment of Interest
Step 2 – Preparation
Step 3 – Planning Meeting
Step 4 – Implementation
Step 5 – Maintaining Momentum
Step 1 of Cluster Development
The essential starting point (which we call ‘assessment of interest') is getting the important stakeholders (particularly the decision makers within each of the relevant businesses) to (1) come to a meeting, and (2) be at least somewhat open to listening to the idea (you can't guarantee that they will be totally open but you can take them a step in that direction).
Some important elements of this are:
1. Unless you already have some cluster relationship in place, the invitation should issue from a trusted neutral authority who is not perceived as having anything to gain from the situation. This could be a local council, industry association or maybe an academic institution. Depending on the situation, it may also be one of the businesses themselves.
2. Whichever party is identified as the inviting party, the other parties mentioned in point 1 can support the idea by both communicating support and attending the meeting.
3. The invitation to the 'cluster development' meeting should be clear as to the time frame and benefits of attending the meeting so that people can decide whether to invest their time in this way. The invitation can also attach an agenda. Here is an example for a 60 minute meeting:
- Introduction (Inviting party)
- Interest & Reservation
- Presentation on the ideas including brainstorm of stakeholders
- Questions and interest
- Next steps (if applicable)
- Clos
4. Whatever you do, stick to the time limits. Don’t allow the meeting to go over time.
5. Think about the purpose of the meeting as being to educate not persuade. It is our experience that when people perceive that you are trying to convince them, it often turns them against the idea. So don’t even try.
6. Share your step by step plan for the cluster development.
7. Share the general outcomes that you would expect from this situation. You obviously can’t be specific because that lies in the hands of the participants but you can provide general benefits.
8. Consider brainstorming with the group the relevant stakeholders who should be involved. The way we do this is using the acronym ARE IN - people who have Authority, Resources, Expertise, Information and Need.
9. Share case studies and testimonials of other cluster development and related initiatives.
10. Be realistic about the ongoing time required from the stakeholders. The worst thing you can do is to drive or facilitate such an exercise only to find that it doesn’t have legs due to lack of time. Building this goodwill requires time. If you find that you have planned more time than is needed, you can always reduce it - but it is rarely possible to do the opposite once you are committed to a plan.
11. Share your suggested next step(s).
12. If there are costs involved, be open about what they are and share some ideas for funding. Check if government funding is available.
13. Go around the room and ask for input about what people think of the proposed cluster development.
14. If it is agreed that you should move forward with the idea (even if it is just to the next step) be clear about who is doing what and by when. Don’t leave the room until you have this clarity.
The 5 steps are reflected in our own 5 step cluster development process. More on Step 2 shortly.
Allied Information:
Business Cluster & Economic Development Examples and Case Studies
Our Process for Business Cluster Development
Definition & Benefits of Business Clusters
More Thoughts on the Definition of Clusters The Evolution of Business Clusters
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“I have never seen an approach produce such positive outcomes, goodwill and energy.” 
“It has been a real enlightenment to go through the City Edge process. The identification of ‘common ground’ was an absolute success.”
“Brilliant.”