EXECUTIVE DIRECTOR'S COLUMN


'A Very Simple Equation' for Leadership

Can Americans learn valuable lessons on leadership from someone who is about as physically far removed as possible from the corridors of national power?

We hear a lot about leadership these days, especially as we enter a presidential election year. What we don't hear nearly as much are stories about real leaders.

Nebraska Gov. Dave Heineman

Here's one, and you won't find him inside the Washington Beltway. His name is David Eugene Heineman. He was born May 12, 1948, in Falls City, Nebraska, a rural town that today claims less than 5,000 inhabitants.

He grew up in towns named Fairbury, McCook, Benkelman and Wahoo, where he graduated from high school. He would later graduate from the U.S. Military Academy at West Point in 1970 and serve five years in the U.S. Army. A graduate of the Army's Airborne and Ranger schools, he would rise to the rank of captain.

Following his military career, Heineman began making his mark in another field of public service: politics. He would serve as chief of staff for a member of Congress and dabble in local politics for a while, serving on the Fremont City Council in Nebraska from 1990 to 1994.

After serving nearly seven years as state treasurer and more than three years as lieutenant governor, Heineman received a call to a higher office when Nebraska Gov. Mike Johanns resigned to become the U.S. secretary of agriculture. Heineman took the oath of office on Jan. 21, 2005, as the 39th governor in the history of Nebraska.

Less than a year later, his mettle would be tested in the race of his life — a primary campaign to win the Republican gubernatorial nomination against none other than legendary Nebraska football coach Tom Osborne. Overcoming a 40-point gap in the polls, Heineman edged out Osborne by a 49-to-45-percent margin to claim the primary.

Heineman's next race was a virtual cakewalk, as he defeated Democratic nominee David Hahn on Nov. 7, 2006, with 76 percent of the vote.

Later this month, Heineman will mark his three-year anniversary in Nebraska's highest elected office. But from all outward indications, life in the governor's mansion hasn't changed him.

While interviewing Gov. Heineman for an article in this month's issue of Site Selection magazine, I asked him to name what he felt was his most important contribution to the state he has called home for almost 60 years.

Saving the Family Farm

It didn't take him long to answer. "Since we enacted the Nebraska Advantage program 22 months ago, more than 126 companies have decided to expand or relocate in Nebraska," he said. "That's over $4.5 billion and more than 11,000 jobs added to our economy. And during the last legislative session, we passed the largest tax relief in the history of our state. Half of that came in the form of property tax relief. We repealed the estate tax and eliminated the marriage penalty in state taxes."

Heineman said his entire motivation was "about job creation and wealth creation. By eliminating the estate tax, we can do both. A lot of small business owners and family farm operators are excited because they can pass on the fruit of a lifetime to their children and grandchildren."

The governor says that his formula for stimulating economic development follows "a very simple equation: lower taxes plus fiscal discipline equals keeping young people in your state and expanding companies. Higher taxes plus too much spending equals lack of economic growth. I am very pleased about the job creation that is occurring throughout our state."

In the long run, the biggest contribution made by the governor may be the fact that he has established Nebraska as a pro-business state willing to go out of its way to make a corporate project work and be profitable in Nebraska.

According to Michael Rareshide, executive vice president of Partners National Real Estate Group Inc. in Dallas and site selection consultant for Fortune 500 companies, Nebraska and Kansas are two of the top locations in the country for corporate expansion projects.

"Both states not only have reasonable wage rates and great incentives, but the real estate portfolio of both existing buildings and land sites does provide the user solid opportunities to pursue," Rareshide said. "While it can be argued that all of the Central Plains states are pro-business, these two states do take it up a notch for several reasons."

He listed those reasons as follows:

  • "Very knowledgeable economic development officials that truly understand and anticipate what the site selector requires."
  • "Both states' EDC's are an excellent extension of my site selection consulting."
  • "Very quick response time to any questions or concerns — no matter how minute or technical — about their state."
  • "Keen perspective on the strengths of their communities, based upon direct discussions with all the prior local and state employers that have expanded or relocated."
  • "Great understanding of how to circumnavigate the local, county and state government matrix to help solve the intricate nature of facility relocation."

A Kindred Spirit

Like Nebraska, Kansas is led by another pro-business governor, Kathleen Sebelius. A Democrat, she came into office in 2003 under a pledge to make "the Kansas business climate more attractive to business." She has done just that. In 2005, Time magazine named her one of the top five governors in America.

The common denominator between Heineman and Sebelius, judging from their rhetoric and their resumes, is leadership. But it's not the type of leadership that's on display in speeches or merely recorded in legislation.

In the case of these two Heartland governors, leadership can be defined as the ability to clearly articulate the needs of their states and then turn their words into forceful actions.

Both governors have worked hard to eliminate unnecessary bureaucracy. Both have made strong commitments to invest in education from kindergarten through post-graduate school. Both have empowered state and local economic developers to make the decisions on the ground necessary to get important deals done with companies that have to act quickly.
Ron Starner,
executive director
of IAMC

Both have lowered the tax burden on employers and the people they pay to work. And perhaps most importantly, both have surrounded themselves with extremely knowledgeable and experienced experts who do more than pay lip service to economic development; they perform it regularly by helping industries and companies grow and prosper.

It's no surprise, then, to find that both the Nebraska Department of Economic Development and the Kansas Department of Commerce are associate members of IAMC, and both have been active in IAMC for a long time.

When I asked Heineman to name his state's No. 1 asset, he was quick to give all the credit to Nebraska's people. "Our No. 1 business climate factor is our work force," he said. "We have a great work ethic and worker productivity. Nebraskans don't look at their jobs as 8 to 5. We are team-oriented and goal-focused."

He also trusts his people. When I asked him to name the most important lesson he has learned about Nebraska since becoming governor, he said: "That every one of us can make a difference. I've used the example of a minister and a business leader. One minister in Nebraska struck up a conversation with a major CEO and told him that he should bring his business to Nebraska. We got that deal done, and the company relocated here."

Heineman says his mission now is "to get everyone focused on economic development. I tell our citizens that if you talk about Nebraska, you will make a difference."

Making a difference is what leadership is all about. If you don't believe that, try winning a statewide political campaign against the most revered figure in the history of Nebraska football.

David Eugene Heineman will tell you that it can be done, and he will also be the first to tell you that his work is far from finished.

— Ron Starner

 
 
 
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