Last week came the announcement that Kristofer Johnson was leaving his post as the President of the Saint Paul Chamber of Commerce. Before their board goes on a lengthy search for a new president, I think both chambers need to seriously consider this question: is it time for the Saint Paul Area Chamber of Commerce (SPACC) and the Minneapolis Regional Chamber of Commerce (MRCC) to merge?
I am a former MRCC employee and my business partner, Ellen Watters worked for the SPACC. Both organizations have struggled to be relevant to their member companies while businesses cut back on their association fees. In a community where there are 35+ chambers in the 7-county metro area, this is not easy to do. Larger member companies such as Target, Wells Fargo and Xcel Energy are expected to join each and every one of these chambers.
As the director of the InterCity Leadership Visit (a program sponsored collaboratively by both the MRCC and SPACC) I’ve researched business and economic development associations in such cities as Denver, Seattle, Boston, Dallas, San Diego, Atlanta and Charlotte. The communities that have seen the best successes are cities that have built and supported one regional organization.
In Atlanta, the chamber is the “go to” organization for business support, policy making and professional development/retention of employees. When the public schools were close to losing their talented superintendent, the chamber stepped in and worked in a public forum to produce much-needed reform on their school board. This resulted in a renewed interest in businesses supporting the public schools and also inspired qualified and dedicated business people to run, and win seats on the school board.
What could the MRCC and SPACC do together?
Many people argue that the smaller businesses would lose their “street level” support if the chambers merged. The model to consider gives each city their own “council” and their own board with programs that fit their individual community need. Those small businesses get networking opportunities plus the support of the larger companies’ financial assistance for economic development and policy influence.
The MRCC and SPACC spent the last few years trying to maintain their current offerings. Each chamber has a leadership program, an emerging leader curriculum, small business awards, annual meetings and golf tournaments. Both chambers struggle to find sponsorships and participants for each event and program, while the larger members are challenged to find the right attendees to represent them at so many different occasions. What if there was one large, well-attended regional annual chamber meeting. The metro area networking benefits everyone.
Imagine if there was one regional Leadership program. The applicants would compete for a spot rather than be assigned by their company to attend. Immediately the alumni of each program would double their professional connections by achieving access to others from “across the river” who participated in past programs. Community issues from Minneapolis, Saint Paul, Bloomington, St. Louis Park could be looked at collectively by engaged business and nonprofit leaders and benefit from a regional dialog about solutions.
Beyond networking, is further opportunity for both chambers. Imagine one regional economic development proposal! What if there was only one organization that built a strategic, mutually agreed upon plan that was implemented and supported by all businesses, metro-wide. At the end of the day we shouldn’t be worried about a company relocating to Plymouth or White Bear Lake, but if a business is going to choose Minnesota or Seattle.
Economic realities have produced creative collaboration for public-private partnerships and combined government services. Both chambers could take baby-steps in working closer together. Merging back office operations might be an easy place for both to start. In addition to the InterCity Leadership Visit they could consider additional programming to benefit their organizations and their members.
The United Way did it. Catholic Charities did it. The YMCAs did it. Why can’t the Minneapolis and Saint Paul Chambers do it? I think they can, and they should. What do you think?
Even the chambers need to consolidate in an age where industries and companies are consolidating globally. This is what the current and future business environment demands of both the private, public, non-profit and combinations of these sectors. Scale is important. The business trend is to leverage resources and eliminate duplication (ex: back office activities) and I’m sure there are several functions which both chambers duplicate for the advancement of their respective constituencies in the Twin Cites metropolitan area. Organizational survival is going to be increasingly dependent on strategic mergers which aim to: 1) achieve strategic and operational synergies and 2) building a new platform for growth by rebuilding core businesses and identifying opportunities for sustained growth. The Twin Cities must think in terms of a united metropolitan area and still recognize its unique differences on both sides of the Mississippi River. But then too, I’m a newcomer to MN with no historical attachments or loyalties to this area.
Elizabeth
I am a newer resident of Minnesota and the metropolitan area as I have lived here for 3 years. I am currently a participant in Leadership Twin Cities and am very grateful for all the opportunities, connections and education it has given me. However, being from the “outside” I see both Minneapolis and St. Paul as one large metropolitan area when discussing it as being a chamber of commerce. It is my belief that the chambers should be as one voice, in fact, I thought Leadership Twin Cities was both MSP and St. Paul (how does one know that is new to the area?) The metropolitan area consists of both cities and should be united in a voice advocating for the best interests of all its residents and the community it serves.
For as long as I have been involved with Chambers of Commerce, some 15 years now, the question of Chamber mergers has been talked about. When I ran the Midway Chamber there was talk about merging with the Saint Paul Chamber. When I was at the Saint Paul Chamber there was talk about merging with Minneapolis. While Wendy mentions me in this blog and we have a consulting business together, I have to say I disagree with her on this issue at this time. While many communities do have a dominant, regional Chamber or similar entity, the fact is that Minneapolis and Saint Paul are different. We have two major cities, not one. While there is strong evidence that regional leadership works, I haven’t seen it work where there are two major cities. And, as a Saint Paul loyalist (no offense to my colleauges across the river), there is a long-standing perception among East Metro folks that when we do join with the West, the East Metro gets less than is its fair share. Several years ago, for example, we did an analysis of regional infrastructure investment and found that despite a roughly 60-40 split in population, the West Metro had attracted closer to 70% of that investment. So given that history, if there is a regional Chamber, how do we ensure that the East Metro isn’t relegated to second status? To me, that is the critical question.
Yes, it’s time. Back office integration makes sense as does unified programming, marketing and regional advocacy. Your council model is an interesting one that will be fraught with political challenges in planning and implementation. The river between the two cities is narrowing….and will only hasten when the LRT begins operation. Lean times offer opportunities for creative change. We are in the midst of one of those opportunities. It’s time for the two chambers to leverage it.
Wendy:
I would support a logical combination of the two that preserves the integrity of the mission of both. From a corporate perspective, I agree with the with the challenges potential opportunities you have outlined.
Don
Thank you, Wendy, for once again raising this important issue. The MRCC and the SPACC both provide valuable services to their members. I’ve enjoyed being active in each. I’ve also enjoyed their succesful joint program, the InterCity Leadership Visit. I think the core question is whether the entire business community in the metropolitan region will be even better served if there is a “Single Voice for Business in the Metropolitan Region.” I think the answer is YES. There may (and should) always be a reason for specialized advocacy groups that serve certain geographical portions of our region (just as other Chambers of Commerce in addition to the MRCC and SPACC continue to do today). However, we need a unified voice for the Region. We compete in the world as a region. We would all benefit from a single voice advocating for us. The time is right for a Metro Chamber.