Will Murray Look To Combine Business Groups?
PHOTO/Matt Pilon
Former Lt. Gov. Timothy P. Murray on his first day at the Worcester Regional Chamber of Commerce..
In 2011, a prominent Worcester attorney sparked debate among local business groups when he suggested they consolidate to have a more focused approach to economic development.
In a white paper, Michael Angelini, chairman of the law firm Bowditch and Dewey, recommended a merger of the Worcester Regional Chamber of Commerce, Worcester Business Development Corp. (WBDC), Worcester Redevelopment Authority, Massachusetts Biomedical Initiatives (MBI) and Central Massachusetts Convention & Visitors Bureau.
At the time, Angelini wrote that the merger would help reduce redundancies, improve collaboration and help shore up some of the organizations that had been struggling financially or had lost funding.
The proposal won the support of Lt. Gov. Timothy Murray, for whom Angelini had helped lead an election transition team in 2006, as well as the backing of City Manager Michael O'Brien.
But a grand consolidation, which made some members of the groups apprehensive about diluting their respective missions or influence, never happened.
Murray couldn't have known at the time that, less than two years later, he would take the reins of the Worcester Regional Chamber of Commerce.
So, does the 45-year-old former mayor and city councilor with a Rolodex the size of a box truck, a man who once seemed a shoe-in to replace Deval Patrick, bring new energy to the merger discussion?
Some hope so, but don't expect to see an actual merger of business groups, business leaders and city officials told the Worcester Business Journal. It's more likely the individual groups will increase their level of collaboration on economic development.
"I don't know how it will all fall out, but I think Tim will surely be a tremendous and welcoming ingredient to pull it all together," said Kevin O'Sullivan, CEO of MBI and a former state representative.
John Merrill, president and CEO of Fidelity Cooperative Bank and an executive committee member and officer of both the chamber and the WBDC, said one reason the merger idea was brought up was to encourage greater coordination between the groups. But the second reason was to have a more focused approach to attracting new businesses, something he said the chamber has never had the resources to add to its member services focus.
But Merrill, part of the small group who negotiated Murray's hiring, hopes the chamber's economic development focus will grow with Murray at the helm. The chamber is hoping to allocate new resources to the effort.
"What's needed — and I'm really excited about having Tim's leadership to help fill that void — and the chamber board and membership needs to get behind him to do it, is to provide an organization that not only provides great member services, but also helps recruit, retain and grow businesses," Merrill said.
Merrill hinted that Murray's presence may inspire members with resources to commit them (though he said that doesn't mean raising membership dues).
"There are members of the business community that would see the value of what Tim could do with some additional resources," he said. "This is about investment in what the chamber can be versus what it is today."
That could mean additional staff, but Merrill said it's too early to say. Murray needs to develop a strategic plan with the board and go from there. He has a lot on his plate already in aiming to continue the momentum built by his predecessor, Richard Kennedy, Merrill said. Any kind of merger needs to happen more naturally, he said. Demand should be identified before major organizational structures are changed, he said.
A New Desk
In an interview last week at the chamber's downtown offices, Murray said he supported exploring the concept of a merger in 2011, but said there's plenty of room for closer partnerships between and among the groups.
"Maybe over time there are synergies and compatibilities; things like co-location that can be looked at," Murray said. "We need to continue to have conversations about exploring possibilities for economic efficiencies within the organizations."
One approach to attracting new businesses that he hopes to try is to send small teams to meet with business prospects within and outside New England. That might mean Murray, WBDC President Craig Blais, Worcester's chief development officer, Timothy McGourthy, and Quinsigamond Community College President Gail Carberry meeting with a health science company interested in locating near QCC's new downtown health and workforce development campus, Murray said. Or it may mean convening a different mixed group to meet with a transportation company that wants to locate near the CSX intermodal terminal on the city's East Side.
If a business reaches out to any one of the parties, the point is to continually share information and figure out how the groups can help one another, he said.
O'Brien, the city manager, said Murray's leadership will help the city "lure in new and exciting opportunities."
"Having his skills, abilities and reach available at this time in our history, with so much going on, is positives all around," O'Brien said.
O'Brien feels he may have pushed too hard in 2011 in advocating a merger, but he still holds out hope that the groups can find more efficiencies and collaborative projects.
"As we look out, I still believe there is opportunity for consolidation and streamlining, and I believe the city should be in that mix, (in which) my economic development team focused on business recruitment and retention and it's seamlessly integrated (with the business groups)," he said. "I believe there's a future for this plan that was (originally) outlined."
Increasing Collaboration
While the business groups share a number of members across their boards, a more formal group has emerged that includes the heads of the organizations. The Economic Development Coordinating Council, led by McGourthy, has been meeting for more than a year to discuss ongoing or potential developments.
The group includes the WBDC, MBI, the chamber, the city and others. The council has organized several events to attract life sciences companies to the city, including a life sciences commercial broker event in March, and McGourthy said there will be more in the future.
"I think having everyone around the table and talking about the various projects and setting priorities and trying to align efforts has been a great positive," McGourthy said.
Murray said the council, on which he will sit as chamber CEO, is off to a good start.
"I think it's getting its sea legs and it's about expanding and improving on it," Murray said.
Angelini, who started the merger discussion two years ago, is pleased with the emergence of the coordinating council.
"I guess my current thinking is that the line between centralization, which I was proposing and which I understand is drastic, and meaningful collaboration, the space between those two, is not necessarily a big space," Angelini said. "We now have a process for collaboration. It gets us to the same place."
He thinks Murray's hiring shows that the chamber and the city are serious about economic development.
"That's the value proposition I think is now transparently in front of us," he said. "I really do think we're in the right spot now."
Stabilizing Finances
While collaboration is helpful, Murray must also focus on the chamber's membership and finances.
The organization ran deficits in 2010 and 2011, according to its most recently available tax filings. Its dues revenue fell 5 percent from 2009 to 2011 and it cut several staff members over that time.
But several board members said recently the organization's financial picture has stabilized over the past two years.
Murray said declining membership is a challenge faced by many chambers and other organizations.
"That's endemic to any organization in today's society," he said. "People are working more; businesses are trying to do more with less."
Murray: Chamber Will Remain Relevant
But Murray said chamber membership is worth it. The chamber played an important role in many city projects during his tenure as lieutenant governor, and he plans to keep it relevant.
While some in the city are sad to have lost Murray as an advocate for Worcester on Beacon Hill, he has no plans to stop pushing for geographic equity.
"I think as the governor and the administration (have) made decisions, they have, more so, than any other administration in probably 50 years, focused on regions outside of the Greater Boston area," he said. "I'll be pushing that agenda, albeit in a little bit of a different way and in a different seat."
Read more
Worcester Chamber Hires Lt. Gov. Murray
Murray Pledges Aggressive Approach To Business Development
Worcester Chamber Launches Economic Development Fund
WBJ Web Partners
Most Recent
Most Recent
0 Comments