(DES MOINES) – Gov. Terry E. Branstad released today the Iowa Demonstration Fund Combined Economic and Fiscal Impact study. The report is a third-party review that quantifies the impact of the Demonstration Fund on the Iowa economy. The report was authored by Econosult Solutions Inc. and was commissioned by the Iowa Innovation Corporation in partnership with the Iowa Economic Development Authority and the Iowa Innovation Council.

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Through a survey of past recipients of Demonstration Fund investments, information was collected to determine, among other things, how large these companies are now as compared to their pre-investment levels.  Iowans can attribute the growth in size, annual revenues and job creation in part to the technical assistance and funding provided by the Demonstration Fund.

The Demonstration Fund provides financial and technical assistance to encourage high technology prototype and concept development activities that have a clear potential to lead to commercially viable products or services within a reasonable period of time. The Demonstration Fund supports commercialization activities by small and medium-sized Iowa companies in the advanced manufacturing, biosciences, and information technology industries. The primary purpose of the fund is to help businesses with a high-growth potential reach a position where they are able to attract later stage private sector funding.

“It is essential that we have tools in place to help Iowa’s high-growth, innovation-based companies succeed in our state,” said Governor Branstad.  “The Demo Fund is one way we have to do that and because of this report, we know quantifiably that the state is seeing a return on that investment.”

Between 2007 and 2012, the Demonstration Fund awarded $13 million to 101 companies.  The report is based on survey results received from 79 of those companies that collectively received $8.7 million. Some results of the Demonstration Fund Combined Economic and Fiscal Impact Report include:

• 600 new jobs were created by survey respondents
• $2.1 million in tax revenue was generated in 2012 alone by survey respondents
• ROI is calculated at 24%

“The success of the Demonstration Fund was the result of dedicated and motivated industry leaders from across Iowa whose vision was to grow the innovation economy by investing and mentoring emerging tech-based companies,” said Chris Nelson, President and CEO of Kemin Industries and board member of the Iowa Innovation Corporation. “Those of us involved with the applicants soon learned that the real value was the mentoring with the dollars being a close second. Each recipient was asked to provide confidential feedback to the IEDA which confirmed our belief.”

The creation of the Demonstration Fund was an outcome of the Iowa Innovation Council, an industry-led group that develops strategies and long-term plans to ensure that Iowa remains globally competitive in innovation-based enterprises.  The Iowa Innovation Corporation is a private non profit organization created by the Iowa Innovation Council to implement statewide innovation strategies developed by the business community to achieve the goal of “Growing Iowa’s Own”.

The Innovation Corporation has implemented an aggressive campaign to expand the success of companies like the Demonstration Fund recipients by fostering partnerships to create a statewide sustainable innovation network and advocating for ongoing innovation-based resources to grow Iowa’s economy.

Washington, D.C. – Congressman Dave Loebsack issued the following statement in response to the Department of Labor’s announcement that the unemployment rate was 7.6 percent in March and the economy added 88,000 jobs.

“Today’s job report confirms what many Iowans already know – our economy has been hurting and near stagnant for far too long.  This is unacceptable.

“Over the past two weeks, I brought together stakeholders in education, workforce development, labor and business to discuss how we can grow our local economy and put Iowans back to work.  These roundtables allowed people working on the ground to identify the challenges we are facing and come up with solutions as to how to best get the economy back on track.

“What I heard time and again was the need for a better trained workforce.  We have to close this so-called skills gap between the kinds of skills workers have and the kind of skills that businesses need.  This is why I have introduced legislation called the SECTORS Act that links together businesses, labor organizations, local stakeholders, and education and training providers.  This bill will work on the local level to ensure employees are properly trained so they can effectively compete in the 21st Century global economy.  I will continue to work with my colleagues from both sides of the aisle to grow industry here at home and start building things in America again. Washington cannot be allowed to continue to stand in the way.”

Mexico is Illinois’ Third Largest Agricultural Customer

MEXICO CITY – Speaking to an audience of key leaders and decision-makers, Governor Pat Quinn promoted Illinois agricultural exports during his trade mission to Mexico – already one of the state’s biggest agricultural customers. The governor’s trade mission is part of his agenda to drive Illinois’ economy forward and create jobs. Following last night’s event, today the governor will tour Ingredion Inc.’s Mexico City agricultural production facility. Earlier this year Governor Quinn cut the ribbon on the company’s new production facility in Bedford Park, Illinois.

“Agriculture is big business in Illinois, and Mexico is one of our best customers,” Governor Quinn said. “Every year, almost 40 percent of our commodities - the corn and soybeans we grow and the pork and beef we raise - are sold overseas. With sales of $8.2 billion, Illinois currently is the third largest agricultural exporter in the United States, and Mexico is one of our most loyal agricultural trading partners.”

Illinois Department of Agriculture Director Bob Flider and representatives of several Illinois agricultural companies have joined Governor Quinn on the trade mission, including ADM, Tate and Lyle, and Ingredion.  The Illinois delegation is meeting with top Mexican agriculture officials to reaffirm the state’s existing trade relationship and discuss having Mexico purchase more Illinois agriculture and related products. Since 2010, Mexico has purchased $1.9 billion in agricultural products from Illinois, including $780 million in 2012 alone, making it the state’s third largest agricultural export market.

“We are fortunate to have a governor who understands the economic vitality of Illinois depends upon its ability to cultivate global markets,” Director Flider said. “Governor Quinn has set an ambitious goal of doubling Illinois exports by 2015 and created an Export Advisory Council to help achieve it. The Illinois Department of Agriculture is one of two cabinet-level agencies on the council and is playing an instrumental role in creating markets for Illinois food and agricultural products.”

The Illinois Department of Agriculture maintains a trade office in Mexico City where buyers are identified and brought to Illinois for tours of grain, pork and dairy industries. The department also sponsors pavilions in Mexican trade shows and takes Illinois companies there to do business. The trade office works with the Illinois Export Advisory Council, formed by Governor Quinn to help double Illinois exports by 2015, since exports to Mexico are a major part of the council’s efforts.

In the last year alone, the Illinois Department of Agriculture has participated in 13 international and domestic trade shows, led five foreign buyers’ missions, facilitated 5,474 buyer-seller introductions and disseminated 1,741 trade leads. Later this month, Illinois will host the International Biotechnology Conference, where experts, universities and companies will meet to discuss and promote advancements that will help feed the world’s growing population more efficiently and productively. Governor Quinn was named the 2011 BIO International Governor of the Year as a result of Illinois’ efforts to provide feed, fiber and fuel to the world.

The state of Illinois has 36 million acres of land, of which 75 percent is devoted to production agriculture. In a typical year Illinois farmers grow 16 percent, or two billion bushels, of the nation’s corn crop and 14 percent, or 400 million bushels, of its soybean crop, ranking second in production only to Iowa. Illinois farmers also rank fourth in pork production, marketing nearly two billion pounds of the commodity. Illinois ranks first in the country with $162 billion in sales of processed food, and many of the 2,514 plants that produce these sales are located in urban communities.

Illinois also has a large network of agribusinesses that provide the tools farmers need to produce their commodities, from seed, chemical and feed companies to equipment manufacturers and implement dealers. Combined, these agriculture and agriculture-related businesses employ nearly one of every four Illinois workers.

The Mexico trade mission is the latest by Governor Quinn as he seeks to promote Illinois to an international audience. Past missions include China and Japan in 2011, and Canada and Brazil in 2012.

What can business leaders and managers learn from watching the earnings of publicly traded companies?

“Plenty,” says Kathleen Brush, a 25-year veteran of international business and author of “The Power of One: You’re the Boss,” (www.kathleenbrush.com), a guide to developing the skills necessary to become an effective, respected leader.

“When looking at the corporations reporting lower-than-expected earnings, you need to read between the lines. They are not going to admit that the reason is a failure of leadership, but 99 times out of 100 that’s what it is.”

She cites Oracle, the business hardware and software giant, which recently reported a quarterly revenue shortfall based on a decline in new software licenses and cloud subscriptions.

The company is "not at all pleased with our revenue growth this quarter," Oracle co-president Safra Catz told analysts. "What we really saw was a lack of urgency that we sometimes see in the sales force ..."

They are pointing the finger at the employees, but they are really admitting a failure of  leadership, Brush says.

“Do you know how simple it is for managers to motivate sales people? If indeed the lack of sales urgency is the problem. There are dozens of bad leader behaviors that can cause sales to decline,” she explains.

In her work for companies around the country, from restructuring operations to improving profitability, Brush says she sees an epidemic of bad leader behaviors.

“When I point them out, most leaders downplay, or refuse to acknowledge, the impact their behaviors are having on their bottom line. But, in companies where leaders change these behaviors, employees become engaged and motivated. It is really that simple to increase productivity, innovation, and the bottom line,” she says.

“If you’re a boss examining your own lower-than-expected performance, instead of wasting time searching for scapegoats, look in the mirror. Most bosses unwittingly exhibit bad leader behaviors daily that cause their businesses to suffer.”

Here are four increasingly prevalent and damaging behaviors:

• The unethical boss: This is a category that doesn’t just annoy employees, it appalls them. As such, it’s a powerful demotivater. When a boss breaks or fudges the rules, cheats, lies or indulges in behaviors that reveal a lack of moral principles, he or she loses employees’ respect. Without their respect, a boss cannot lead. In addition, when a leader indulges in unethical practices, he gives his employees permission to do the same. Padding mileage reports, splurging on business travel expenses, failing to take responsibility for mistakes – they all become endorsed activities by the boss – the role model.

• The unfair boss: Our current societal efforts to treat people equally – think gay marriage, health care reform, the children of undocumented immigrants – have led to confusion among some leaders about “equality” versus “fairness” in the workplace. “I talked to a manager who gave all his employees the same pay raise because ‘he wanted to be fair,’ ” Brush recalls. He then seemed mystified that the productivity of his best employees declined to that of an average worker. “Rewards can be powerful tools of motivation, but they must be administered fairly.”

• The buddy boss: Bosses can never be buddies with their employees. Ever. Friendships neutralize the boss’s authority and power. They can also cloud a leader’s objectivity and hinder her ability to correct behaviors, to delegate, and to hold employees accountable. When friendships compromise output, it’s the boss who will be accountable. “Be friendly to employees, but do not cross the line that muddies the relationship between boss and friend. It could cost you your job.” Brush says.

• The disorganized boss: Workplaces are filled with employees who lack direction because disorganized leaders don’t deliver and manage plans and strategies to guide their teams. What’s the chance of an unguided team maximizing its productivity to create competitively superior innovative widgets? “What’s the chance of employees being inspired by a leader who leads like a doormat or by random thoughts?” says Brush.

“As a manager, you wield a tremendous amount of power,” she says. “You can be an incredibly negative power or a positive one who’s looked up to by both peers and employees."

“For the latter, bosses have to purge the bad behaviors.”

About Kathleen Brush

Kathleen Brush has more than two decades of experience as a senior executive with global business responsibilities. She has a Ph.D. in management and international studies. Brush has been teaching, writing and consulting on international business and leadership for companies of all sizes, public and private, foreign and domestic.