How Lack of Communication Causes “Team Environments” to Fail

Some of the times if you take the bits and pieces of information floating around in the media and put it all in one location, it can shed some light on issues. The first excerpt is what was reported in the local newspaper under the title of “73 New Jobs Coming to Town” on October 21, 2009.

Below the online article, you will find two comments apparently submitted by the Rushville Chamber Director in response to the apparent leak of confidential information in the article. The information was obviously not to be release to the media, but the local city elected officials must have gotten so giddy about the possible creation of the 73 jobs, they just could not contain themselves.

The final portion of this posting is the response made to the local newspaper’s article posted in the Monticello newspaper.

Rushville Republican Article

Resolution 2009-14, passed unanimously by the Rushville Common Council Tuesday evening, paves the way for Jordan Manufacturing of Monticello to open a manufacturing operation in Rushville with the help of a state grant.

The manufacturing plant will open in the former Schnadig building on 11th Street. The plant will produce a component currently being manufactured in China.

Concerns over product quality led Jordan Manufacturing to seek state assistance in bringing this manufacturing operation — and ultimately 73 jobs — back to Indiana.

“They are real down-to-earth and went out of their way to give us a tour,” Mayor Mervyn Bostic said regarding a recent trip to Jordan’s Monticello plant.

Councilman Mike Buckley made the motion to approve the resolution with a second from Al Shelton. -- Melissa Conrad, For the Republican

Chamber Director Comments in Comment section below the article

The team assembled to assist with this potential project is saddened by this premature announcement. Hopefully, there will be an appropriate time for an official announcement for this new business, and there will be a press conference with the owners of Jordan Manufacturing, the team facilitating the project, and state officials. As part of an internal expansion project or retention project, certain incentives are offered and acccepted. This grant is one of those incentives. The team working hard for this community consists of Eastern Indiana Development District, Rush County Chamber of Commerce, IEDC, Indiana State Department of Ag, City officials, OCRA, and the Lt. Governors office. We hope to welcome this new business to Rush County in the near future.

Pamela C Leisure
Rush County Chamber of Commerce
Posting date 10/23/2009 1:41 PM
Posted by Pam

In response- The project is a retention/internal project. The owners of the bulding have been the owners for many years. Their tennant moved out and they began having discussions about what to do with the building. They are existing owners simply considering bringing a new line to their facility in Rushville. Since it is an existing building, it fell within the Chamber Guidelines. ECDC has been very supportive and has volunteered to help with the project from day one. The only reason I didnt mention them, was because they were already mentioned several times. There were a lot of folks who have worked on this that weren't mentioned and should have been. The Chamber, ECDC, City and County all wish to promote a "Team Environment". In fact, through most of the discussions, many of the above mentioned persons, along with regional and state officials were present. Mark- thanks for keeping me in line! (Mark is another volunteer who works many hours trying to improve our community- Thanks for all your hard work for the Farmers Market, it was a great success!)

The only reason I posted here was to let the public know that this was a premature announcement. With any project, there is an incentive offering stage. That is the stage where this grant had to be discussed and the resolution passed. I am sorry if there is confusion about the process.

My original post was placed after talking with the client, and at the client's prompting. I hope that most people in the community know that the Chamber (and I am sure the ECDC as well but I do not work for them so I will not speak for them) is working very hard to grow Rushville and Rush County. It saddens me greatly to see the negative comments on these posts. There are many people who work tremendous hours trying to make Rushville a better place. We have great organizations in Rush County, many of whom have primarily volunteer boards, and it is discouraging to see people called to the carpet like they often are in these comments.

To former member: I am very sorry to have lost you as a member. The Chamber of Commerce is always looking for volunteers to help guide us into becoming a better, stronger organization and would welcome your advice as a business owner. You can call the Chamber of Commerce at 765-932-2880 (since I am only part time, I also have my cell phone listed as a contact on the voice mail, if you would happen to call when I am not in the office)

On a final thought, potential clients interested in relocating a business or expanding a business often times search the internet forums and blogs to get a feel for the community. They often make contact with our existing businesses and industries to see how they have been treated. A community only gets one chance to make a great first impression. Sadly, communities have missed out on opportunities because of negative forums and blogs. Rush County already has many challenges when competing for New industries. ECDC needs many tools for enticing new industries to Rushville, like infrastructure, four lane divided highways, land, buildings... these are big items which will take a tremendous amount of time and effort to overcome. Small items like forums and blogs are easier to fix. Perception can easily make or break you.
Posting date 10/27/2009 6:47 AM
Posted by Pam Leisure
Monticello Article

‘We’re not leaving Monticello’
Jordan owner says expansion will not affect local operation.
By SCOTT ALLEN, sallen@thehj.com
Published: Tuesday, October 27, 2009 9:04 AM CDT

Jordan Manufacturing may expand its business beyond White County, but not at the cost of any of its Monticello operations.

“We’re not leaving Monticello,” said owner Dave Jordan. “Our business is good; our industry, for some unknown reason, we’re not as affected as other businesses have been.”

A report in the Rushville Republican announced that Jordan will open a new plant in the southern Indiana city. The newspaper reported the plant would bring 73 new jobs to an existing building. But Jordan said that is an uncertainty at this point.

“The process is not complete,” he said. “It is premature to say that we’re going with Rushville.”

Jordan explained that the expansion process has been ongoing for over 2 years, and is still going because his company is working with entities to clear the way.

“Last year with the economy being very uncertain, we got to a point and pulled our horns in on it,” he said. “However, we’ve continued to work on procedures and methods in order to make this expansion as successful as possible.

“We’ve still got a lot of work to do.”

Though Rushville is a possibility for the new site, other locations are in the running. The reasons, said Jordan, are both proximity to raw materials and incentives offered to locate a plant by the benefitting community.

White County Economic Development Director Connie Neininger explained that incentives offered to a company can vary.

In White County, the possibilities include tax increment financing and funding for infrastructure like water, sewer and roads.

“The most common is tax abatement,” she said. “Some communities have reserves such as funds set aside to provide additional incentives either for training, permitting or just to help with moving costs.”

She said that the Indiana Economic Development Corporation also offers incentives, but usually only to bring companies into Indiana or prevent them from leaving the state.

Jordan explained that the new plant, wherever it is located, will bring work back to the country that’s currently being done in China.

“Like any good business, we’ve always got to be looking at what we can do to enhance our business and be more valuable to our customers,” Jordan said.

Neininger said that though Jordan Manufacturing isn’t looking to locate its new facility in White County, its expansion will be a boon locally.

“Anytime a corporate office is growing, especially in today’s economy, it’s good for everyone,” she said. “Yes, we would love to have the new project here locally, and the city did offer tax abatement … but again a company has to look at what’s best for them.”

In May, the Monticello City Council approved tax abatement for Jordan Manufacturing with the purpose of a new manufacturing facility to make wooden market umbrellas. But that abatement is good for 10 years, and the possibility for continued expansion in Monticello is open.

“We will probably still keep expanding in Monticello,” Jordan said.

Neininger understood that other factors can make a company more attracted to other communities.

“If there’s an existing building and they won’t have to spend a lot to renovate, and … if it’s closer to raw material, anytime they’re looking at expanding, if their corporate office is here we will see that benefit,” she said.

But Jordan was clear that his Monticello facility will not suffer from the expansion.

“We’ve had the best summer here that we’ve had in our history,” he said. “We’ve had more people working in our factory than ever, and we’re looking to expand that.”

“The home office is still going to be here, we’re not cutting anything we’re doing here,” Jordan said.

Questions:

1. So should we congratulate the Mayor or slap him on the wrist?

2. Should a chamber director reprimand the Mayor and Council?

3. Can a chamber director be released by “The Administration” for insubordination?

4. Was the exclusion of the county and the ECDC intentional?

5. In White County the Economic Director comments and in Rush County the Chamber Director comments – why the difference?

6. Did Rush County cause a headache for Mr. Jordan?

7. After reading the compilation, does “73 New Jobs Coming to Town” seem misleading?

8. Does the general public or any of the “Team Environment” members know what internal expansion project or retention project means or how it is defined?

9. Why would the ECDC board members not have a clue regarding the internal expansion or retention project program definitions?

Comments

[Reasoned]

Jordan Manufacturing was not comfortable in its dealings with ECDC, and turned to the
City's chamber. Getting the service and answers from the chamber kept this project alive.
THAT is just good teamwork. Good for Rushville.
As for the ECDC board, there are so many personal agendas, it's a wonder they are able
To define anything they do. When someone PAYS the ECDC to be on their board (and we're
Talking high dollars) they expect something back. One only has to look at who the board
President is to figure out who controls ECDC. No surprise there.
Rushville needs desperately to put aside pettiness, realize that it's a small town that must
Fight for any progress, and allow ECDC and chamber to team up to present the best possible
Image. Both org's have talented leaders, they have the diversity that companies admire,
And the two of them as a "team" could be formidable.

[Skippy]

So if there is such issues with the ECDC, should there be major changes? If a company feels more comfortable with the chamber than ecdc, then how many other companies are we losing? What is interesting is either the chamber is lying or does not know the difference between retention and new companies. Retention would be retaining the same company, not bringing in a new one. So what does the chamber director offer that our ecdc director does not?

[Sam]

Skippy,
Sorry to see that you can't read. It's pretty clearly written above:

The project is a retention/internal project. The owners of the bulding have been the owners for many years. Their tennant moved out and they began having discussions about what to do with the building. They are existing owners simply considering bringing a new line to their facility in Rushville. Since it is an existing building, it fell within the Chamber Guidelines.

Sounds like it can be considered a retention project to me...???

[Its not too late to act like we're not stupid]

Maybe everyone should just shut up before the company changes their minds completely.

[haha]

Maybe the two mystery ECDC men Merv talked about during the election can magically appear and fix all of this!

[VideoGuy]

I am still waiting for the shoe store on main street as promised. :)

[Skippy]

Sam,

So if Harley or Honda wanted to come here and move into an existing building that is retention? Sorry, does not work that way. Retention is keeping the same company here, it has nothing to do with the building. Really, you guys are stretching this thing. And if this project does not happen, blame Merv for violating his confidentiality agreement.

[Sam]

Skip,

They OWNED the existing building! DUH.
The company was ALREADY HERE, in terms of ownership. Harley or Honda are not.
This is not that complicated for anyone with larger than a small mind.

[buford]

So you are saying Jordan is alread here? They have a presence here? They manufacture here? Very quiet company, how many do they employ? Where do they run this manufacturing facility? Again, If they are more comfortable with the Chamber than ECDC, that is fine, but what does it say about our ECDC? I think this was an accidental look into the mess that is our economic future. It all started with the Mayor promising to release his economic plan after the election, an event that never happened, then the two men from Shelbyville and it has collapsed faster than Dougs Flowers. I think we are in a world of hurt and the powers that be will not admit it to themselves or others.