In recent speeches, he said it will be a "top-to-bottom" evaluation over the next 45 days.
Hagerty, who took office Jan. 15, said the intent is to make the agency more effective and efficient.
He also said the department plans to focus on rural job creation and tailor efforts to the "unique assets" of each region.
Hagerty said success in the current economic environment will depend on "focus, focus and more focus."
He spoke to the Tennessee Chamber of Commerce and Industry and the Tennessee Economic Development Council.
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