New L.A. Chamber CEO Gary Toebben Wishes to Lead L.A. Business into the 21st Century

What are the 21st century challenges for the L.A. Area Chamber?

The first challenge is getting the business community to speak with one voice on issues that are important to business and economic growth. We have such a large population and so many businesses that are so spread out, sometimes it becomes difficult for business to get its message across, particularly to elected officials. Our board and I want to find ways to partner with the many other chambers of commerce and business organizations in this community so that when there is an issue of importance to business we can make it clear to elected officials.

When TPR interviewed incoming CEO Rusty Hammer and then-chair Charlie Woo in 2001, Charlie Woo said, "most entrepreneurs will engage in the Chamber if they think it's relevant . . . but if the Chamber continues to go through the motions and concentrates on historic programs, the entrepreneurs will find someplace else to put their energy. The challenge is to devise a new set of programs and create an environment where entrepreneurs can exchange ideas and create exciting dialog." Does that challenge remain?

This question addresses the Chamber's second challenge. Charlie's statement deals with another important aspect of this Chamber of Commerce-and all chambers of commerce-and that is to provide a forum for businesspeople, entrepreneurs, and others to discuss common issues, learn from each other, and, as a result, partner with others to make changes. All chambers of commerce need to be involved in two things: influencing public policy and helping members grow and prosper.

You arrived several months ago after leading the Northern Kentucky Chamber of Commerce. What are your first impressions? How do you get your arms around the country called ‘Metropolitan Los Angeles'?

I have had an exciting first four months. When I am introduced to someone and they find out that I moved here from Kentucky, 85 percent of the time the response is, "that must be quite a change!" And my response is that it's just a few more cars. It is amazing how many transplanted Midwesterners live in Los Angeles-either they were born in the Midwest or their parents were. So in nearly every case when I meet someone, I will eventually find a connection that relates to one of the three states I've been in, Nebraska, Kansas, and Kentucky, and the Cincinnati area of Ohio as well. I haven't found the move overwhelming at all.

The region presents a challenge for any regional organization. Does L.A.'s size and diversity confound the Chamber's priorities?

The challenge of creating a sense of community in Los Angeles is bigger here than most anywhere else in the nation. Because we are so spread out, the amount of time that it takes to travel discourages people from coming together on a personal basis. It encourages people to come together on more of a neighborhood basis, because that's easier. That is one of the reasons why there are so many different business organizations and chambers of commerce in this area, and one of the reasons why it is difficult to get businesses interested in regional issues.

Businesses have at least three sets of issues: first, their own internal issues; second, issues in the immediate geography of their business, including labor, traffic, safety; and third, depending on the business, a national or an international set of issues.

Our chamber cannot be involved in all of those issues, but we can be involved with those issues that are important to the L.A. region and to some extent with those issues that relate to international trade and how L.A. connects with the rest of the world.

How have chambers' roles throughout the country evolved with technology, the internet, and globalization? Is it tough for intermediary organizations like the chamber to remain the voice of local business?

The mission of chambers of commerce in their respective communities has not changed significantly. But, specific activities and how chambers carry out that mission has changed dramatically.

When chambers were created, most of their members were primarily interested in issues facing the immediate vicinity of their business. Most of their sales were in close proximity to the plant, store, or office. So there was a real self-interest in the health and vitality of the community, both as an economic marketplace and as a place to live.

Today, many businesses deal nationally and internationally. They care about a much broader set of issues, and it is much more difficult to get the CEO of a major company to be involved with local issues. The Chamber often focuses on quality of life issues with that CEO because his/her company stills need to attract good people to their business.

The second major change has been in communications. There was a time when chambers of commerce were the reservoirs for all the economic data and all the information about the community. Today, information about communities is so readily available on the internet that you don't have to go through the "intermediary" of the chamber of commerce. So while the L.A. Chamber has that kind of information, it's typically on our website for anyone to access without calling us.

TPR carried an interview with LAEDC President Bill Allen, who said that in the last 25 years the county of L.A. has added over 2.5 million people but only a half-million jobs, while the city of L.A. has added 1 million of those people but none of those jobs. What's the job of the Chamber if those statistics are accurate?

We are assuming that those statistics from SCAG are accurate. As soon as I heard these numbers, I started using them in my speeches. The role of the Chamber is to share this information largely with elected officials and cause them to ask the question, "Why?"

This information is so important, because elected officials often believe that if there are more houses and cars on the street, we must be business friendly. The fact is that over the years a collection of new regulations, passed one at a time, have contributed to Los Angeles's reputation as not being business-friendly.

In addition, large enterprises like the city often take way too long, in my estimation, to process permits and the kinds of approval that businesses need to take action. Time is money for business, so it's important to have the mayor and other elected officials focused on ways to streamline the process at City Hall.

I'm encouraged by two things in this regard and discouraged by others. I'm encouraged by the fact that the mayor has recently appointed an economic development advisory group headed by Russell Goldsmith; he calls the group the Los Angeles Economy and Jobs Committee. I am hopeful that this committee will address some of the significant issues in our community and provide recommendations to the mayor that will be helpful.

I'm also encouraged by a small committee that councilmembers Parks and Wesson have created to analyze why companies leave Los Angeles and what we can do to reverse that trend. Those two initiatives mean that the mayor and the Council are paying some attention to the numbers you cited earlier. On the other hand, the recent introduction of an ordinance that would cause the city's prevailing wage law to be implemented in private hotels near LAX is a step back and tells business that L.A. city government may in the future extend its reach into the management of their business.

Obviously the Chamber has taken a strong interest in the November ballot because it includes a package of infrastructure investments. This interview takes place before the election, but could you elaborate on how the Chamber has engaged in this election campaign?

Propositions 1A-1E have been a high priority for us for several years. It was the focal point of our trip to Sacramento this past spring. It is so important to the business community because we understand as well as anyone the importance of investing in infrastructure: streets, highways, transit, education, water supply, and housing. They are all lynchpins of the economy and essential for economic growth.

Not only was the Chamber involved in lobbying to place these propositions on the ballot, we immediately supported them and have been speaking in support at a myriad of press conferences and in all of our communications.

You traveled with the mayor to Asia in October. What insights did you gain from that trip?

As I visited major cities in Asia, the speed of change slapped me across the face. It was my fifth trip to Asia, but my first trip to China. I kept remembering previous trips to Korea, Japan, India, Pakistan, and Thailand, and I was in awe at how much physical and economic progress was taking place.

At the same time, I couldn't help but think how long it takes us to move forward on significant community initiatives. I was reminded of Will Rogers's quote, "you may be on the right track, but if your train is not moving fast enough, you'll get run over anyway." That summarized everything I saw on the trip with the mayor.

What I saw in Asia caused me to reflect on how challenging it is to create economic change and progress in a participatory democracy like the United States. Every good idea meets with objections from people who, for a host of reasons -all of which make perfect sense to them-are uncomfortable and sometimes angry about change and try hard to maintain the status quo.

In Asia, and especially China, central planning is utilized in the development of cities. Leaders look at the cities as a whole in planning their developments. One of the challenges we face in the United States is balancing the needs of adjoining neighbors with the overall needs of the community. Today's leaders in America's cities must be skilled in addressing neighborhood concerns while still finding a way to move the city as a whole forward.

Who went on the trip with the Mayor, and what business deals may result because of the relationships established between LA business leaders and their far eastern counterparts?

What impressed me was the number of business relationships we already have. A number of Chinese businesspeople from L.A. participated on this trip, and this was old hat to them. They already have relationships there, and the same thing in Korea and Japan. I was struck by how small the world is for people of Chinese, Korean, or Japanese descent who make these trips all the time, much like someone here might travel to New York.

These relationships are going to continue to grow. The mayor has a list of specific deliverables from the trip, but for me our meetings with the American chambers of commerce in Beijing, Shanghai, Hong Kong, and Seoul were important and pointed out what a great resource they are. We also visited with the consulates or embassies in every city we visited. We met with their commercial officers, all of whom were very informative and can be very helpful to our members who are looking to do more business overseas.