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