Worst of the Week: Iowa Department of Economic Development

by Tom Flynn on May 26, 2009


iowa_life_changing

Ok, let me start this post out by saying we did not submit a proposal to provide the Iowa Department of Economic Development (IDED) with marketing and public relations services.  We didn’t feel we had the experience, size and, most importantly, political connections needed to earn that business.  We also didn’t have time to read through a 27-page RFP (request for proposal) document that forbade you from even meeting with the people you could potentially be working with for the next one-to-three years. So, no sour grapes in this post!

Typically, we’ve waited until Friday to post our “Worst of the Week”.  Not this week!  We couldn’t see anything trumping the Iowa Department of Economic Development’s decision late last week to hire a Public Relations firm headquartered in TEXAS to help recruit and develop more business within the state of IOWA.

Feel free to read that again.

The company chosen by the Iowa Department of Economic Development to represent the state in growing and recruiting new businesses and new employees for IOWA is Burson-Marsteller, an international PR firm with offices around the globe (but none in Iowa, according to their website).  The decision means at least several dozen Iowans, the same Iowans who pay taxes that the state uses to help recruit new employees and businesses to relocate to our state, will now be out jobs because the IDED helped move those jobs to another state!  Good job of economic development there, huh?

So, who is Burson-Marsteller and what can they do for the state of Iowa?  Well, if history proves anything, it should be an interesting ride.  Rachel Maddow of MSNBC, (one of the media outlets that Burson-Marsteller will be looking to spin about Iowa), describes Burson-Marsteller as “the go-to company when EVIL needs a PR firm”.  She lists a whole lineup of Burson-Marsteller’s past clients – Blackwater, silicon breast implants, Philip Morris, Aqua-Dots (the kids’ toy that turned into the date rape drug), Three-Mile Island, Saudi Arabian Government three days after 9/11 – … you get the picture.

But, this rant isn’t about Burson-Marsteller’s qualifications.  It’s about the Iowa Department of Economic Development thumbing its nose at Iowans.

Does IDED truly believed that there isn’t a marketing communications firm within the state that could do a great job of marketing Iowa to employees and businesses?

Does IDED truly believe an out-of-state PR firm can better pitch business editors and reporters as to why companies should move to Iowa than the people who have chosen to live and work here themselves?

Does IDED truly believe being a third-tier client for an international PR firm is better than getting the full attention of an Iowa company’s best talent?

Who made this call and what were they thinking?  Governor Culver, decisions like this are exactly why people have lost all faith in their government.

Congratulations IDED, you’re our Worst of the Week!

Author: Tom Flynn III

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{ 12 comments… read them below or add one }

Craig O. May 26, 2009 at 8:10 pm

Iowa is lucky to have so many talented marketing and public relations firms and professionals. Bravo to Ad Mavericks for exposing this.

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Karen May 26, 2009 at 9:21 pm

State officials said Burson affiliate Larson-Shannahan-Slifka Group in West Des Moines will act as account executives.

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tomflynn3 May 26, 2009 at 10:05 pm

Karen -
Glad to see the DM Register is reading our blog. Wonder why the state would choose a PR firm that few in Des Moines have heard of … one that has a website still under construction and doesn’t show up in Google search results. Found their website by doing a Google search and linking through one of the principal’s LinkedIn page http://www.linkedin.com/pub/joe-shannahan/5/919/358. Here’s the link to the website http://www.ls2group.com/
Looking at Joe’s background, looks like they have some Iowa political ties.

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Ginger Stevenson May 26, 2009 at 10:08 pm

Agreed. A well written article. Iowa agencies – small and large – have a lot to offer. There are many talented teams here that could have done a great job for IDED.

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Karen May 26, 2009 at 10:16 pm

Hi Tom, Your blog has caused some stir on twitter, and that got me here. Although I might tune in more often now. About IDED… I am not defending the choice, and don’t know anymore about the firm than what you posted. I just wanted to add the information for those coming to read the post.

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Wart Kurner May 26, 2009 at 10:32 pm

Something is rotten in the state of Denmark-to quote “Willy The Shake” maybe there is a PR firm in Belgium that could help them out.
Is it naughty to use the word asshats?

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tomflynn3 May 26, 2009 at 10:39 pm

Thanks Karen. Glad to see there is some connection to Iowa, but my guess is most of the work will be done by people out of state.

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Karen May 26, 2009 at 11:11 pm

FYI… IDED’s response about local companies… http://www.iowalifechanging.com/documents/documents.aspx?id=3

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IDED sucks May 26, 2009 at 11:38 pm

My friends, the biggest problem the Iowa Department of Economic Development has is NOT the agency it picks. Any of them would do a fine job. EXCEPT for one BIG problem. The tubes at IDED are a bunch of bubbling idiots. Not one of them would know their ass from a hole in the ground. Any agency that tries to help them find their ass will soon see that they don’t want to FIND their asses. Only COVER their asses. They truly do not give one shit about creating jobs or getting people to move to Iowa. All they care about is going through the motions of LOOKING like they are doing it.

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Ginger Stevenson May 26, 2009 at 7:22 pm

I’m with Tom. It looks as if on paper and in a release it’s and Iowa choice, but I would wager that the bulk of the work would be done outside the state.

As a local ad professional and one of many ‘victims’ of the current economy, I’d like to see how more of the dollars will be used here as well as spent here.

Personally an explanation of ties to Iowa is nice, but not enough.

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Truth for Iowa May 26, 2009 at 7:56 pm

Karen, caught wind of this all today too. Very interesting. Could be a good story here. Lots of locals following.

You know, if you want the real story from a news media perspective you can always request to look at the proposals and communications with the agencies. It’s all public record.

It may all turn our to be kosher in the end … but the strong ties to the former governor’s office … the legislative ties … and the current IDED team’s political ties seem a little too close when you consider the BM Iowa firm doesn’t even show up on Google. I’m just sayin…

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Alex Thorne May 28, 2009 at 11:38 am

Excellent article blog post. I’ve been through a few of these proposals when I was in New Mexico, and the corruption was pretty bad. It’s all about who you know.

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