Wisconsin Manufacturers and Commerce: View from the Inside

The board meetings and the structure of the Wisconsin Manufacturers and Commerce (WMC) is not much different from most boards, be they voluntary, corporate, labor union or nonprofit. If anything is unusual about the WMC board, it is that there is less dissent and more cohesion with a forty-five member board:

• About half the members fail to make all of the annual meetings.
• There is a core group of a half a dozen who control the meetings and the agenda, along with key staff members.
• This same group controls the election of future board members and, in turn, the officers.
• Most of the board members are too busy running their own businesses to carefully research WMC positions or to look for alternatives analysis or viewpoints.
• At the board meetings positions are generally laid out by the staff in a terse summary. Discussion rarely lasts more than ten to fifteen minutes on an individual subject.
• In the rare instances where there is pointed questioning, the dissenters are usually bullied into submission. The clock is ticking and every five minutes of 'wasted' discussion totals two to three hours of the board members' valuable time.
• There are three staff members heeded: Jim Haney, Jim Buchen, and to a lesser degree, Jim Pugh, who is viewed more as the resident pit bull rather than a policy wonk.
• The remainder of the staff is ignored, though there are some bright minds, but they are not in a position where they can interact with the board members.
• Consequently, morale among the staff is low.
• WMC exhibits all of the cultural and organizational characteristics of a staff driven, top down organization. The result is:
  • Little creative thinking 
  • Little concern for external consequences or externalities
  • Sacrifice of long term goals in order to maximize immediate gains
  • A culture that stifles dissent

Comments

[JLaFay]

Does this surprise anyone?

This describes many WIS product producing organizations. Theres a reason the WIS economy has lagged the national in up and down cycles as history details. The top down do nothing until an outside shock wave makes us change is the WIS management style from the top. And we wonder why people leave upon degree in hand? Fairly, some organizations have transformed from reactive to proactive, WMC isnt one of them. There leadership has chosen the political escape route instead of presenting flexible resolutions to enhance the WIS state of commerce, because of that we all lose.

[Fraley]

Paul, you seem to be enjoying your union-sponsored campaign to disrupt WMC's effective pro-job provider agenda.

I'm looking forward to your insight into how the plumbers and electrical unions are run or how SEIU and AFSCME handle their internal operations. Should be fascinating.

[Anonymous]

While reading this it sounded more like an organization ran by the far left then by the right, if in fact any of it is true.

The only reason that I can think you are so obsessed with this is that you are being paid and fed information. I think you should disclose who is behind your vicious attacks on the WMC.

[Resident]

Wow, much useless dialog here.

IF this comment (WMC's effective pro-job provider agenda), has any merit, someone is being fed alot of BS. The agenda does not match the historical results, nor does the agenda involve electing a judge?
The largest commerce boosting group in WIS has a pathetic history of affecting the structural economics of WIS let alone adopting a larger perspective to address change where its needed to even begin to compete with our border neighbors. The resounding thud of failure has forced the WMC to do the only thing they know how, get political by spending resources. Its ineffective.

[John]

How so many here have missed the point is breathtaking. It's now how individual companies manage their business, or how unions representing employees go about negotiating wages and benefits, it's how WMC is influencing the laws of our state. They may have legislators in their back pocket, and that's bad enough, but Justices that tilt the law so that it benefits business destroys the people only protection in this state and country. I can only assume that would not be good. I've posted my own thoughts here, and other points of view as well.

http://democurmudgeon.blogspot.com/2008/07/new-wave-of-corporate-responsibility.html

[none]

Yeah, and WEAC, AFSCME, etc. have no legislators in their "backpockets" or don't influence the laws of our state. Come on, get real. I can't stand WMC and the brand of politics they have been pushing the past few years, but I am smart enough to realize that this isn't simply a one-sided problem. The whole system needs to be cleaned up and we need real reform, and that means dealing with both sides equally.

[Jack Lohman]

As a former member of WMC, I would argue that WMC is controlled by the industries that pay the most in membership fees, and you can count on the insurance industry being right on top. That is exactly why they oppose Healthy Wisconsin, which would be a boon to Wisconsin businesses. So to Fraley, that would not be the case if they really did have a "pro-job" provider agenda. WMC should review the conflict of interest this creates and sit out the health care debate.

[Fraley]

Yeah a 15 billion dollar tax hike on business would be a real boon to business. Good grief.

Jack, you've spent too much time glued to the laptop. Time go get some fresh air, clear your head.

It's laughable how many folks want WMC to sit out, stand down, change their ways... All of you have a clear anti-business, anti-private sector growth agenda that favors increasing the cost, scope and reach of government laws and regulation. Exactly the type of things WMC has successfully fought against.

[Jack Lohman]

Brian, give me a break. Get out your calculator. Yes, a $15 billion tax REPLACES $17 billion in insurance premiums. Now turn the calculator on: that's a net reduction of $2 billion!

Please, if you are going to keep talking about the tax, mention the offsetting savings! This is first-grade math, for crying out loud.

You clearly know that if cash were not changing hands -- between WMC and the insurance industry and between the insurance industry and politicians -- HW or the like would be implemented virtually overnight. No non-conflicted business leader would support the current system or the "free market" approach espoused by the conservatives.

[lukas]

Uh oh Paul, looks like you stirred up some WMC apologists. You must be doing something right.

[jimbo]

Hey Fraley! How many ways are you losing? Let me count the ways. #1...instead of addressing the issue, you change the subject. Your strategy had a pretty long shelf life, but it's now old-school.

Insulting the character of someone who disagrees with you used to work for you. No more, because your preferred policies have been shown to be ineffectual. Go get some fresh air and clear your head. Good grief. Go sell insurance, because what you're selling doesn't sell anymore. You failed.

[Jack Lohman]

Jimbo, don't wait for an answer from Fraley. He likes to drop bombs and run, or half-bombs as is the case here. He's a Republican consultant and knows they've lost it.

[FED UP WITH EPIC]

Let's see how this compares to EPIC:

WMC: About half the members fail to make all of the annual meetings.
EPIC: One person is in charge. There is either 100% attendance or 0%.

WMC: There is a core group of a half a dozen who control the meetings and the agenda, along with key staff members.
EPIC: One person is in charge

WMC: This same group controls the election of future board members and, in turn, the officers.
EPIC: One person controls everything, inlcuding the political opinions of vendors

WMC: Most of the board members are too busy running their own businesses to carefully research WMC positions or to look for alternatives analysis or viewpoints.
EPIC: There is absolutely no interest in alternative analysis or other viewpoints

WMC: At the board meetings positions are generally laid out by the staff in a terse summary. Discussion rarely lasts more than ten to fifteen minutes on an individual subject.
EPIC: There is no discussion allowed, or vendors are fired.

WMC: In the rare instances where there is pointed questioning, the dissenters are usually bullied into submission. The clock is ticking and every five minutes of 'wasted' discussion totals two to three hours of the board members' valuable time.
EPIC: Repeat, there is no discussion allowed, or vendors are fired.

WMC: There are three staff members heeded: Jim Haney, Jim Buchen, and to a lesser degree, Jim Pugh, who is viewed more as the resident pit bull rather than a policy wonk.
EPIC: There is one goddess and only one goddess. I don't know if she is viewed as a pit bull, but it seems likely given her refusal to accept otehr viewpoints.

WMC: The remainder of the staff is ignored, though there are some bright minds, but they are not in a position where they can interact with the board members.
EPIC: Anyone with a different viewpoint is not just ignored, but is fired.

WMC: Consequently, morale among the staff is low.
EPIC: Morale? How is that measured for vendors who have been fired?

WMC: WMC exhibits all of the cultural and organizational characteristics of a staff driven, top down organization. The result is:
Little creative thinking
EPIC: They claim to be this wonderfully creative company, but obviously not when it ocmes to pliticla viewpoints.

WMC: Little concern for external consequences or externalities
EPIC: There is no concern for freedom of expression.

WMC: Sacrifice of long term goals in order to maximize immediate gains
EPIC: Well, the goal is do good, be happy and make money. They seem to be making big pots of money, by overcharging the health crae industry and the healthcare consumers. I guess we can assume they are happy because they are rolling in a lot of money, if that makes them happy.

WMC: A culture that stifles dissent
EPC: A culture that completely kills dissent. It would be a big improvement if it only stiffled dissent.

Nice job Paul. It is so very clear now.

[Jack Lohman]

What total hogwash!!!! Epic is owned by one person and WMC is (supposedly) owned by hundreds. What is it about the difference between a private company and a public association do you not understand??? And a "conflicted" association at that!

[FED UP WITH EPIC]

I completely understand a private company and a public association. I also understand freedom of expression and acceptance of other opinions. For instance, I accept your opinion about EPIC's bullying, even though it is different than mine.

Exactly why should one company try to control a public association? How does that benefit the public? Wouldn't it be better to foster and support freedom of expression? Actually, I think our country was formed based on that belief. We did not want to be controlled by the King and Queen of England.

But now some of us (Cullen for one) are controlled by the goddess of Epic.

[Jack Lohman]

That's still hogwash. The owner of Epic has the right to boycott WMC members. WMC is an association that some of us believe is not working in the best interest of either their members or the public, especially in the area of health care. And they invest in the campaigns in right wing judges like Gableman, who was one of those who recently ruled against the ability of home buyers to sue home sellers when property is misrepresented. Epic is practicing the responsibility right-wingers espouse. (And I am no friend of Epic or any of its employees. I am a former CEO and ex-member of WMC.)

[FED UP WITH EPIC]

And WMC does not have a right to do what they are doing?

Most left-wingers and right-wingers that I know, even though their political views differ, still support freedom of expression.

I am sure all of us could comb through the thousands of cases that each judge is involved in, and find a lot of cases where we would have preferred a different ruling. So what?

The only reason you call Epic's bullying "responsible" is because you agree with their political viewpoint.

I believe Epic's (i.e. Judith Faulkner's) political viewpoint is not relevant. But their suppression of free speech, expression of opinions, and membership in WMC, is disgusting.

By the way happy July 4th, Independence Day!!

[Jack Lohman]

WMC is a member-driven organization, or at least it should be. It should not be driven by the insurance or any other industry to the detriment of its membership.

Yiour so-called "freedom of expression" assumes that 100% of its members are Republicans and supported, say, Gableman. But that's not the case and never is, so WMC (if it had its membership in mind) should sit out all political races. It should lobby on business issues, not get politicians or judges elected.

"So what ... if you preferred a different ruling?" I don't care what a ruling is, as long as it is (a) based on the law and (b) cash did not change hands in the process. That cannot be said about anything WMC does.

And for the record, here is my complete disclosure: http://moneyedpoliticians.wordpress.com/about/

How about yours? Are you a WMC employee or member?

[illusory tenant]

"Gableman ... was one of those who recently ruled against the ability of home buyers to sue home sellers when property is misrepresented."

Not yet. He doesn't assume the position until next month. In the meantime he's still presiding over uncontested traffic tickets in Burnett County.

[Jack Lohman]

You are right, but you can be assured that if he were seated he "would have" voted on the side of the Realtors. That's the way the system is slanted.

[illusory tenant]

"[I]f he were seated he 'would have' voted on the side of the Realtors."

No argument here. It was effectively a campaign promise.

[FED UP WITH EPIC]

As an Epic employee, I prefer to remain anonymous. We all know what would happen to me for expressing my onions.

[Fed UP WITH EPIC]

As an Epic employee, I prefer to remain anonymous. We all know what would happen to me for expressing my opinions.

[Jack Lohman]

I don't know Epic, but you certainly have the option of finding a more likable employer. But having built my own company over a 25 year period, and knowing what I know about WMC as stated above, I'd side with Epic. And I don't know that I agree with their political viewpoint, I'm a McCain Republican.

[Katrina]

My objection to WMC is the power they have been given by the governor (past and present) and legislature. WMC representatives sit at the table as the state agencies that regulate them are writing the rules. I have seen good regulations hijacked by a process that lets the regulated corporations determine the consequences of their noncompliance.

And EPIC: I doubt that working for EPIC is any worse or better than working for any other large corporation. I understand why you don't take the option of other employment but I seriously doubt you are undercompensated.