After Project Concentrus, what happens next?

  • By John Wolcott SCBJ Freelance Writer
  • Thursday, January 27, 2011 10:27am
  • Business

EVERETT — Appearing relaxed, confident and brimming with enthusiasm, new economic development executive Troy McClelland said he is eager to begin yet another new life adventure into uncharted territory.

Just over a year ago, McClelland won election as a new Port of Everett commissioner,

his first political office.

Ten months ago, he and his wife, Nicole, welcomed their first child, Jack, into their family, initiating McClelland into the new world of fatherhood.

On Jan. 17, McClelland traded his free enterprise life as the director of corporate procurement for Fluke C

orp. in Everett for his first venture into the nonprofit world.

That’s the day he officially became the first president and chief executive officer of the so-far-nameless nonprofit “economic vitality enterprise” that will soon emerge from the melding of the Economic Development Council of Snohomish County, the Everett Area Chamber of Commerce and the South Snohomish County Chamber of Commerce.

On Jan. 18, McClelland gave his first in-depth media interview to the Snohomish County Business Journal, explaining why he applied for the new position, what the new venture means for the county’s business community, how he expects it to develop and what he expects it will accomplish.

“I try not to use cliches, but I have always had a passionate interest in economic development because it is so vital for building healthy communities. It’s a key enabler,” he said. “I came to Everett almost 20 years ago and recently I thought a lot about how I could serve the community. That’s why, after a lot of research, I ran for the port commission because ports are so much a part of economic development.”

McClelland, 42, is a U.S. Naval Academy graduate who majored in ocean engineering, became assistant construction officer for the development of Naval Station Everett and once served as director of engineering for a Navy Joint Special Operations Task Force in the Philippines.

He holds a master of science in engineering (civil) and is a licensed civil engineer in Washington state, has a master of business administration degree from the University of Washington’s Foster School of Business and is the former chair of the university’s MBA Employee Advisory Board.

After leaving 10 years of active Navy duty, he helped launch a software startup company, then joined the Fluke Corp. in 2002, where he held executive roles until this month.

“I have the background to do a number of professional things but for my son’s future and those who come behind me I want to be involved in creating sound practices and policies focused on economic development,” McClelland said. “One of the reasons I wanted this job is that I’ve seen organizations like this one work in other communities.”

Until now, the proposed merger of the EDC and the county’s two largest chambers of commerce has carried the Project Concentrus label. To clarify the purpose of the venture, McClelland and other supporters of the concept now refer to it as an economic vitality enterprise. A permanent name will evolve soon as McClelland and others develop and define the enterprise’s new identify.

“I’ve lived in Fairfax County, Virginia, just outside of Washington, D.C., and I’ve visited San Diego, Calif., extensively and lived there for nine months. In each of those areas, I’ve seen communities that have developed a vision and delivered on it, which has in part formed my point of view on economic development,” he said.

“They’ve discovered that establishing good education and a good place for business means creating a place where people want to live and work and do business. They’ve aligned and pursued specific goals that recognize the value of creating, maintaining and growing jobs. They’ve recognized that with a consistent vision and approach they can create an economic environment that raises all boats,” he said.

Other communities in Washington state also are discovering the increased influence and power of merged business organizations.

Four years ago, the Spokane Area Economic Development Council and Spokane Regional Chamber of Commerce became the state’s first economic development groups to merge, forming Greater Spokane Inc.

Since then, GSI has assisted with 10 company expansion and retention projects that resulted in more than 421 new direct jobs; helped attract One Earth Starch, a manufacturer of biodegradable packaging products; assisted 80 new business clients; produced 19 business workshops; and connected $23 million in government contracts to local companies through the Procurement Technical Assistance Center, a federal contracting program already available through the Snohomish County EDC.

At the same time, GSI retained 93 percent of the two organization’s prior membership and set a 10-year record for new membership growth; hosted career exploration days for more than 50 companies and 1,400 students; and created 15 Teach the Teachers workshops that hosted 159 area educators.

In mid-2010, the Ellensburg Chamber of Commerce and the Economic Development Group of Kittitas County merged to establish a more united voice for supporting local business. Recently the Bellingham-Whatcom Chamber of Commerce & Industry and the Northwest Economic Council announced plans to begin consolidating their efforts into one agency.

“It’s been my experience that in creating an alignment or realignment of organizations you have to start with a vision and strategy,” McClelland said. “I view the nonprofit world as important work and critical for our region’s future. That feeling outweighs any potential minuses of making a career change like this.”

A crucial first step, he said, is determining what things are most important to businesses.

“How do we retain jobs and create and grow the number of quality jobs. … You need to have an idea of what you’re doing and what it’s going to look like. Once we’ve done that, what’s most important is to measure the results, define success and turn that into a work plan,” McClelland said.

Some of that work is already under way, he said, with one committee of EDC and chamber leaders looking at naming the new organization and other committees “helping us to understand what we’re trying to accomplish in the near term, what the new organization should be like, then putting together the work plan and executing it. … Another group will work on vision and strategy.”

During the first 30 days, McClelland expects to put together a work plan and then, by summer, have a business plan in place with some clear successes in hand, as well as some definite goals established.

“I think in terms of 30 days out, then 60 and 90 days, when we should be able to list our early successes,” he said. “You need a baseline and benchmarks along the way to measure successes as you put a plan in place to create and retain local jobs.”

He said it’s also important to get supporters enthused about the new group and what’s being planned and, later, what’s being accomplished.

Signs of that enthusiasm and support seem to be evident already.

“The reactions I’ve seen and heard about McClelland’s selection have been nothing but positive, from labor unions to our investors and potential investors,” said John Monroe, the EDC’s interim president and CEO. “They tell us what a great guy he is and that his background reads like the kind of guy we want.”

Continued business community support and confidence is essential for making the merged organization successful, Monroe said, noting that much of the funding for the new group will come from business leaders who are already invested in the EDC, as well as support from hundreds of chamber members.

“Those existing investments, or memberships, will transfer from the EDC and chambers to the new organization, a really important move,” Monroe said. “What’s interesting to me is that response to our usual fall annual membership renewal letters for the EDC is running about 30 percent ahead of usual. That shows me there’s a lot of support from the business community for the way this is being structured. This (consolidation) move is something our community wants us to do. If they were questioning it, they’d sit on their checkbooks.”

McClelland has said he will continue in his port role as well as accepting the mantle of CEO for the county’s newest, largest and most ambitious business support and development organization.

“The port is vital for the community’s continued prosperity and … drives economic development, enables industry that provides the finest jobs for our citizens and enhances the quality of life in our community,” he said. “This new post and my port role are mutually supportive. I’m really excited for the opportunity.”

A Northwesterner by birth and choice, McClelland was raised in Yakima and has been a resident of Everett for nearly 20 years. His wife, Nicole, also is a longtime resident of Everett and a strong supporter of his new job, he said.

“She said she’s proud I’m making this move to do something that is important to our community. She’s always been a part of my life and career decisions. She thinks regionally as well as locally and we made these choices together. She knows this is something that is important to the community where we’ve chosen to live. She grew up in Everett. It’s her hometown, where her grandfather started Morris Boats in the Port of Everett,” he said.

As for McClelland’s personal goals, the challenges, risks and rewards of venturing into uncharted territory are clear.

“What is rewarding to me is the opportunity to create a value proposition that small and larger businesses can get behind, so there’s an understanding of what we’re trying to accomplish and they have the belief that the right efforts are being put toward those goals. From that comes their excitement and willing investment in this new organization,” he said.

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