Keeping Score on MEDCO comments by Tom Allin
I
want MEDCO be the most successful Economic/Industrial Development group in the
United States. However, how will I ever know if they are successful if
there is not a set of metrics to measure them by? Metrics is just a business
term for keeping score on how an organization or individual is doing.
Metrics define what is
to be measured. Typically, the metrics tracked are key performance
indicators. Metrics enable us to make
evaluations based on objective, quantifiable data.
Think
about it. When you have an annual
review doesn’t your supervisor review your accomplishments against a set of
performance indicators? These
performance indicators may be: how many sales you made this year, how often you
were on time for work, number of repeat customers you created, etc. If performance indicators measure you and me
and measure our companies, why isn’t MEDCO measured against stated performance
indicators?
The reason stated
numbers rather than off the cuff numbers or descriptive words like, “great,
good, etc” are important is they cause confusion. The following story may be found on the MEDCO Web page:
Weatherford
International moving to Marshall
“MEDCO board member
Rusty Howell, who had been working with Weatherford officials for more than a
year, said the average position will pay $57,000 a year plus benefits. The
Marshall site is expected to employ at least 40 full time positions within the
first year, representing a local payroll of more than $1 million.”
By Marshall
News Messenger and reprinted on the Medco Web page
Wow, fantastic – this is great! Oops, wait a minute. My
calculator shows a payroll of $1M divided by 40 positions equals a $25,000
average salary. The first paragraph of
this MEDCO is Great article states Weatherford will eventually have 60
employees and a $2.5M payroll that my math says is an average salary of
$41,667.
OK, what is the average salary: $57,000 plus benefits or
$41,667 or $25,000?
The good news is Marshall will have new jobs, the bad news
is we don’t know how many of these jobs will be held by Marshall citizens or
what the salary of the jobs will be nor the cost to Marshall to bring the jobs
here.
As the citizens who are
providing the MEDCO budget there is an implied contract between us, the money
suppliers, and MEDCO, the economic/industrial providers. The citizens provide a measurable item,
money, to MEDCO. From year one of
MEDCO’s creation, the citizens of Marshall can show how well we have held up
our end of the bargain by pointing to the yearly sales tax collected. Shouldn’t MEDCO be required to provide a
measurable item to us?
Metrics that will allow MEDCO and us to determine their
success are:
·
Jobs Created: (a) New Employees living
in Marshall and (b) Employees living elsewhere
·
Number of jobs created per dollar
invested by MEDCO
·
Total Capital Investment by the new
firm per dollar contribution by MEDCO
·
Ability to generate breakthrough deals
(When a business like Lowe’s considers coming to Marshall, a city/economic development
group can only botch the deal – the city/e.d. group doesn’t make the deal.)
Other less measurable metrics can include new programs
developed by MEDCO. Four years ago
Midlothian, TX (population 7,480 in year 2000) economic development group established
new programs such as:
·
An infrastructure for new
commercial/industrial reimbursement program,
·
An employment and residence incentive
grant program, and
·
A relocation costs loan and grant
program
Has MEDCO established such programs? If so, how have they been received by
potential new businesses? What programs
are MEDCO providing that will bring new business to Marshall and how is the
success of the programs being measured?
MEDCO cannot be a breakaway success without the input of
all of Marshall: citizens, colleges, the arts, Marshall schools, existing
businesses, the Chamber, and the City Commission. However, how can any of us assist MEDCO in bringing business to
Marshall if we don’t know what Medco is doing?
MEDCO presents no business plan to the City. Medco allows no public comment during its
meetings. Medco has no published
meeting minutes (reference its Web page).
MEDCO has no measurable performance indicators. Medco doesn’t appear to answer to our City
Commissioners.
What can you do to help make MEDCO a world-class
organization, and by its success make Marshall a better place to live and
work? Get involved. Involvement is as simple as calling your
City Commissioners:
·
If you believe MEDCO is responsible
for economic/industrial development and associated job creation, ask your
Commissioners why they do not demand a business plan and most importantly a
yearly metric review of MEDCO.
·
If you do not believe MEDCO is
responsible for economic/industrial development, ask them why we are providing
MEDCO with $1.4 million per year.
Marshall
is your City. City Commissioners
understand phone calls are made by voters.
Tell your Commissioners you want MEDCO recognized as the best
economic development organization in the United States – why would we want
anything less? Then vote. Your call and vote will make Marshall a
better place to live and work.
Tom Allin