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Tourism proposal lacks good sense
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Published: May 28, 2008
We thought, because we had power, we had wisdom. -- Stephen Vincent Benét
Years ago I began my career as an insurance underwriter, assessing risks for life insurance. One aspect of training for the position involved reading a book by an insurance executive, Charlie Will, titled Does It Make Sense? It provided the foundation for making good underwriting decisions. The question of all questions Will taught underwriters to ask, when reviewing an application for insurance, was this: Does it make sense? In other words, does the information provided on the application make the case for the coverage applied for, for the reason indicated and the named beneficiary? If not, more information was needed or the application was declined. The intense disagreement over Ted Kaplan's proposal to change how the Forsyth County Tourism Development Authority operates prompts me to question the reason behind what has been stated for the change.
After I have read numerous e-mail messages supporting the authority, an evaluation of its performance and articles and editorials in this newspaper; and after I have talked to people about the situation, it appears to me that somebody is either misinformed or not fully disclosing the truth about how the authority operates or the real motivation for changing its structure.
Kaplan, a Forsyth County commissioner, declares that the authority is building a bureaucracy -- i.e., too many people are on the payroll -- that should be reduced. He says that the savings should be redirected as additional grants to support agencies such as The Arts Council of Winston-Salem and Forsyth County and the Old Salem Museum, and for activities such as sports marketing. The mission of the authority is broader than granting funds to organizations and promoting tourism, and Winston-Salem as a destination is important, too.
Visit Winston-Salem is the marketing arm of the authority. According to Bob McCoy, the TDA president, employees are directly responsible for generating increased visitation to Forsyth County by developing and implementing destination-marketing initiatives and by direct sales to various conventions, meetings, special events, sporting events and market segments. Each employee is assigned a goal for which he or she is accountable.
McCoy has provided evidence that demonstrates that the authority operates within its charter, carries out its mission and documents the benefits it has produced. One point of contention in this dispute is the 10 percent cap on administrative expenses. Kaplan argues that the authority is exceeding the cap; that is, if you include salaries and benefits. The problem with that is that the state law covering the Forsyth County occupancy tax that provides funds for the authority's activities doesn't specify salaries and benefits as part of those expenses. And according to McCoy, it has never exceeded the cap. My underwriter instinct is kicking in; something does not make sense.
Recently the authority's board approved a budget for the next fiscal year by a 7-1 margin. The dissenting vote, Kaplan's. Now, he has escalated his threat to repeal the hotel-occupancy tax and effectively put the authority out of business. That is not good business. It is unclear how the money would be redirected, because the proposals he has put forward continue to change. Kaplan wants to redefine how the authority operates, and now he wants to fast-track the changes if his demands are not met.
Caught in the middle of this clash of personalities, politics and uncertainty are real people whose jobs are in jeopardy if Kaplan plays his hand out and gets his way. Just like that, a different point of view about how an organization operates, and people, projects and business relationships are hanging in the balance. That bothers me. It isn't the discussion about the authority, what it is charged to do and whether it does that effectively, that is troubling, but how this is being handled. By threat: My way or the highway. However this ends up, the Winston-Salem brand has a dent in its reputation, a reputation that officials have worked hard at shaping. Business is being impacted by the uncertainty, and people face the possibility of suddenly looking for employment.
Last year, the TDA hired a professional consulting company, specific to its industry, to conduct an audit of its operating procedures, policies, staffing levels and mission. David Camner was recommended to the TDA by the International Association of Convention & Visitor Bureaus executive staff as a highly respected, experienced and qualified analyst of performance of convention and visitor bureaus. According to his report, available to the public for review, by comparison to like-size bureaus, the Convention Visitors Bureau (CVB) is significantly shy of the capital and operating budgets it needs to more fully accomplish its mission. The report also indicates that given more funding, it could generate an even greater return, and that the staff and leadership demonstrate a solid commitment to success, proving they are up to the task.
Kaplan believes that the organization is top heavy, so let's redirect the funds and send employees home packing. On the other hand, dedicated employees are doing their job, producing results and, compared to those in organizations of similar size and character, are under-compensated.
Something does not make sense.
■ Nigel Alston is a Dale Carnegie trainer and motivational speaker. He can be reached at nalston1@triad.rr.com.
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