Hartford Business Journal

20 Hartford Business Journal • October 3, 2016 www.HartfordBusiness.com OPINION & COMMENTARY EDITORIAL Corporate subsidies can't replace better business climate G ov. Dannel P. Malloy's administration deserves credit for hatching the $220 mil- lion incentive package to keep Sikorsky Aircraft firmly implanted in Connecti- cut through at least 2032. While we're apprehensive about the large incentives Malloy has doled out to businesses during his tenure, we understand the state's ability to grow jobs organically has been hampered by a lackluster business climate. Executives from Sikorsky's parent Lockheed Martin, for example, said the company needed the incentives to offset approximately $400 million in extra costs to build its CH-53K helicopters in Con- necticut rather than competing states. Those numbers underscore the com- petitiveness issues Connecticut faces in maintaining and adding high-quality jobs. But as we head into the Nov. 8 elections, voters must ask if corporate welfare as a chief economic development strategy is the answer to long-term job growth in Connecti- cut. Most would agree, particularly those in the business community, it is not. Connecticut's slow recovery from the Great Recession (we still haven't recovered all the 119,000 jobs lost from that period) offers some proof to that point. While economic incentives have become commonplace across the country (remem- ber, Boston and the state of Massachusetts offered General Electric as much as $145 million in tax breaks and grants to move its headquarters north from Fairfield), their use has been amplified in Connecticut under the Malloy administration. In August, for example, Malloy released a report that showed his First Five economic development program has doled out $256 million to 13 corporations, which created 3,757 jobs and retained 13,349 others. Malloy said the numbers and return on investment show the program has been a success, although it doesn't take into account whether the companies would have made the capital improvements or added jobs even in the absence of government aid. Of course, many recipients claim they would be forced to move without public funds, but we can't verify if that's always true. It's also nearly impossible to determine whether the state or companies receiving incentives negotiated the better deal. At the end of the day, taxpayers are left to trust that government bureaucrats weren't taken advantage of by corporate dealmakers. To his credit, Malloy has helped secure major employers like Sikorsky and Pratt & Whitney with state-aid packages, but the mission would be easier — if not less cost- ly and fairer — if Connecticut was a more attractive place to invest capital. That, of course, would require lowering the cost of doing business, reducing or streamlining regulations, adopting more fiscally sound budgets, among other efforts. Indeed, an economic development policy that puts so much emphasis on grants and loans to create and retain jobs gives the executive branch, which is subject to the whims of political pressures, significant power in choosing winners and losers. We aren't saying Connecticut should take itself out of the corporate welfare game (to do so would ignore the competitive environment between states), but we need a more bal- anced policy strategy that relies less on government to seed job growth and preservation. As the economy weighs heavily on voters' minds this election season, state legisla- tive candidates should be asked to bare their strategy on how to promote economic growth with less help from government handouts. n OTHER VOICES Why Baldrige Principles are still relevant today By Don Mroz M alcolm "Mac" Baldrige left us a legacy of excellence. Now, more than ever, his name, which graces Post Univer- sity's School of Business, and the principles for which he stood, should be top of mind for everyone today. Why? Consider: As secretary of commerce during the presidency of Ronald W. Reagan, former Waterbury "native son" Malcolm Baldrige recognized the need for companies nation- wide to focus on qual- ity and innovation if America were to maintain a leadership position in an expanding global marketplace. Not your usual, run-of-the-mill government appointee, Baldrige was a straight-talking cowboy who had a knack for understanding how businesses could maximize effectiveness by focusing on consumers. It was that intuitive, good business sense that catapulted a ranch hand and rodeo star — a Professional Rodeo Man of the Year who was inducted in the Nation- al Cowboy Hall of Fame — into one of the most respected commerce secretaries in U.S. history. The principles he championed — manag- ing for innovation, ent repreneu r sh ip, c u s t o m e r - d r i v e n excellence, integrity, visionary leadership, creating value, agili- ty, societal responsi- bility, and a focus on the future — became known as the Bald- rige Principles. In a word, they all point to "quality." Those principles were honed in Con- necticut when Bald- rige, then chairman and CEO of Scovill Inc. in Waterbury, followed them while transforming a financially strapped brass mill into a suc- cessful diversified manufacturer of indus- trial, housing and consumer goods. While serving as secretary of commerce, Bal- drige was asked about the difference between the Washington circuit versus the cowboy cir- cuit, to which he bluntly replied: "Cowboys don't talk much unless they have something to say." When Baldrige spoke, Washingtonians tended to listen. His accomplishments as secretary of com- merce included reforming the nation's antitrust laws, spearheading passage of the "Export Trading Company Act of 1982," and chairing a Cabinet Trade Strike Force aimed at ending unfair trade practices. All based upon the principles in which Baldrige believed, and placed both his faith and his trust. Fast forward to today. A myriad of Ameri- can businesses not only must compete with each other, they're in competition with the world. In order to succeed, they need every edge, every advantage. They need to embrace and practice the Baldrige Principles. In Baldrige's own words: "Success is find- ing something you really like to do and caring enough about it to do it well." Think about the characteristics most fre- quently associated with successful global busi- nesses today. Innovation. Forward thinking. Visionary. Agile. Entrepreneurial. Customer- focused. Socially responsible, appear on most every list. Principles Baldrige advocated for decades ago and were written into the "Mal- colm Baldrige National Quality Improvement Act of 1987," which was enacted shortly after Baldrige's death. The act provides the framework for perfor- mance excellence, management, organization quality and ongoing improvement. It led to the creation by Congress of the Malcolm Baldrige National Quality Award, an award that — to this day — remains the country's highest honor to recognize innovation and perfor- mance excellence among U.S. companies. Developed from Baldrige's principles for business excellence, the award evalu- ates organizations based upon: leadership; strategic planning; customer focus; measurement, analy- sis and knowledge management; work- force focus; opera- tional focus; and the results achieved. That the award is among the most prestigious any busi- ness can receive is a testament to the last- ing relevancy of Bald- rige's ideals. Business success has been the cornerstone of our nation's economy since its inception. That's more true today that ever, which is why American busi- nesses need to assume leadership roles in all those areas Baldrige outlined in the 1980s. In other words: Be like Mac! While the Baldrige Principles were born in business, they are applicable in every field — from the arts and theater, to engineering, health care and beyond. Yes, Mac is as relevant today as he was in 1982, and undoubtedly will continue to be for as long as we, as the human race, populate this planet. His vision is a lasting one. n Don Mroz is the president of Post University in Waterbury. HARTFORDBUSINESS.COM POLL Do you plan to use Aer Lingus' trans-Atlantic flight out of Bradley? ● Yes ● No To vote, go online to HartfordBusiness.com. Last week's poll results: Is Sikorsky's proposed $220M financial aid package a good deal for CT? 62.5% Yes 37.5% No Don Mroz ▶ ▶ Success is finding something you really like to do and caring enough about it to do it well. Send Us Your Letters The Hartford Business Journal welcomes letters to the editor and guest commentaries for our opinion pages. Electronic submissions are preferred and welcome at: editor@HartfordBusiness.com. ▶ ▶ An economic development policy that puts so much emphasis on grants and loans to create and retain jobs gives the executive branch, which is subject to the whims of political pressures, significant power in choosing winners and losers.

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