Tribal leaders say there needs to be focus on better management and diversification to spur tribal economies

April 19, 2018 9:52 PM
  • Buck Wargo, CDC Gaming Reports
April 19, 2018 9:52 PM
  • Buck Wargo, CDC Gaming Reports

Tribal economies need to diversify their economic offerings to rely on more than just gaming and focus on bettering their management capabilities to ensure the survival of businesses they run.

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That was the major message that emerged at Strategic Planning: A New Vision for Your Tribal Economy, a panel discussion held Wednesday morning at the Indian Gaming Tradeshow & Convention.

“Gaming has been a great pillar for a lot of tribes, but we have reached that stage and age where it is time to move into a broader spectrum,” said Jamie Fullmer, chairman of Blue Stone Strategy Group, which consults with tribes. “I think back to ten years ago, there were tribes already talking about it, but they may not have been ready to actually move into the next stage of diversification. They are today.”

The idea behind building the tribal economy is centered around leadership, governance and planning, Fullmer said.

Larry Wright, chairman of the Ponca Tribe of Nebraska, said that when a tribe appoints members to boards and positions who lack experience and expertise, it makes it more difficult to be successful.

“We have seen that in our tribe, and we tried in the last few years taking a different approach in trying to identify people,” Wright said. “There may not be any tribal members that have (that) skill set. Let’s find people that have that expertise and… we can bring tribal members up, train them and get them in that position, instead of expecting tribal members doing on the job training themselves to make decisions and build a business and economy. That hasn’t worked for us… many have the mentality that it’s our tribe, and we know what’s best… in many cases we don’t. Is it worth it, to reach our goal in three to five years or do we want to languish for fifteen or twenty? … It is about identifying people that have the skills to get us there quickly and in a good way.”

Anthony Reider, president of the Flandreau Santee Sioux Tribe in South Dakota, said tribes need to focus on what’s in front of them first. His tribe got its first local economic competition in 2011, and revenues fell 40 percent for three to four years. They are now coming back thanks to new management more experienced in dealing with competitive markets.

John Mooers, president of Blue Stone Strategy Group, cited a story about one tribe he didn’t mention by name that was “an absolute leader in economic diversification for years… the pinnacle of not relying on one revenue driver, with thirteen active industries and ninety percent of tribal members employed.

“They were run by the council and the council made a decision one day that managing these businesses was difficult and time consuming,” Mooers said. “The tribe decided to set up a board to manage each business, and they went through an appointment process that did not include qualification requirements. You had tribal members (on the boards) with no understanding of business and operations.”

Today, twelve of the thirteen businesses are bankrupt.

“They now have some of the highest unemployment in Indian country,” Mooers said. “They are financially devastated. It’s a sad story. The lesson is that when you are looking at ways to diversify, there are good ways and there are ways that are lack(ing).

“Take a hard look at how your businesses are being managed and overseen. You are responsible for your economy and your people. This tribe is… starting to inch, back but it will take generations.”

Tribes should rely solely on gaming was a message from the session.

Hellyaachwehay “Junior” Quisquis, president of the San Pasqual Economic Development Agency in California, said gaming has “plateau(ed) in certain cases and the market is saturated.”

“All the eggs have been placed in one basket,” Quisquis said. “Gaming has had great growth over the years, but things are starting to change.”  He said that tribal economic development corporations put in place were expanding on that thought to work with the communities so that tribes don’t wind up facing a situation similar to Mooers’ unnamed tribe.

Quisquis said he grew up on the reservation and has seen it go from extremely poor to, now, successful, with homes, roads and infrastructure. Tribes need to expand on their vision of economic development and not rely on gaming, he said.

“Gaming has been great for many tribes, (but for) leaders looking to get into gaming, don’t just look at gaming,” Quisquis said. “We don’t come to Las Vegas (just) for a casino. We come to Vegas for the entire experience.

“Casinos and hotels have been great (for us), but there need to be more. That is the vision for us as a tribe: offering different services, expanding, making a bigger experience.”