Footprints are important to Thomas Schumpert. The kinds that leave a mark – that recognize he has been somewhere, done something. Schumpert is one to seize opportunity. Five years ago he ran the Boston Marathon.
”No matter how you slice it, 100 years from now no one will remember Tom Schumpert,” he told Providence Business News last July. “But if they are researching the 99th Boston Marathon they’ll see number 8399, 10 hours and 43 minutes Someone will research DBR and they’ll see Tom Schumpert was there. So I’m leaving footprints and that’s important to me. That’s sentimental, but it is.”
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Last Tuesday afternoon, Gov. Lincoln Almond tapped Schumpert to be the next director of the Economic Development Corporation – at an annual salary of $109,787.
Schumpert’s brief tenure at the state Department of Business Regulation – he came on board last June — will be a memorable one. By all accounts, he handled the Harvard Pilgrim insurance mess as well as anyone could.
In fact, it is the work he did regarding the failing health insurers that seems to be fueling the outpouring of support for his appointment.
On Wednesday morning, April 12, Providence Business News conducted a special “Executive Poll,” asking some of the state’s top business leaders if they supported Almond’s selection. The results were overwhelmingly positive.
One respondent to the poll wrote: “I do not know Mr. Schumpert personally. However, based upon my observations of his handling of both the Harvard Pilgrim and Tufts health care problems, I’ve been very impressed. He appears to be a person who listens, considers the facts, decides and acts.”
The poll’s lone negative response questioned whether Schumpert in fact had any track record of bringing in new business to the state, or holding onto businesses already here.
Schumpert worked long hours to resolve the Harvard Pilgrim dilemma, ultimately reaching an agreement in principle with the state of Massachusetts on payment in full for service providers to members of Harvard Pilgrim Health Care in New England. Some had felt that Schumpert would have been lucky to get a fraction of the money he, and the state, was after — he got it all.
It was during that time that he earned the deep respect of Almond. That made a difference, when a couple of months ago, Schumpert saw another opportunity present itself.
Opportunity seized
The search for a new director at EDC began early this year – after John Swen resigned during the first week of 2000. Swen’s departure was the result of both political and public fallout from his admission that he and members of his staff had used state credit cards inappropriately.
The committee charged with finding a replacement for Swen received more than 100 resumes for the position that is chiefly responsible for assisting existing businesses and luring new ones to Rhode Island. One of them came from Schumpert.
Almond made it clear during a press conference last Tuesday that Schumpert had impressed him during his tenure at DBR. He was a straight shooter, and Almond enjoyed working with him. When the governor interviewed for the EDC post, Schumpert got right to the point with his boss.
”Governor, I want this job very bad,” he said.
Almond knew his national search had ended. His ideal candidate to run the EDC was about a mile away, on Richmond Street at the DBR’s offices in the capital city’s Jewelry District.
”He has never seen a challenge he can not meet,” said Almond. “He has tremendous leadership and negotiating skills. When it comes to business, Tom really knows how to close a deal.”
Experienced in economic development
Prior to taking over as director of the state Department of Business Regulation in the late spring of 1999, Schumpert was president and founder or TS Associates, Inc., a Boston management consulting practice. His specialty there was commercial lending, economic development and business finance.
In addition, Schumpert served as president of the Massachusetts Minority Enterprise Investment Corp. While at MMEI, Schumpert developed a lending, venture capital and technical assistance operation to provide access to banking for minority-owned small businesses in Massachusetts. He also served as senior vice president at two banks, including Bank of New England in Boston. He was as an assistant vice president with Fleet National Bank in Rhode Island.
Schumpert served in the U.S. Air Force in Vietnam from 1965 to 1966. He earned a management degree from Rutgers University in New Jersey.
Almond expects the next head of the EDC to focus on developing Quonset Point/Davisville to its fullest potential. Almond expects to hear back from consultants this spring – with a report that should tell the governor whether a shipping port at the former Navy base is economically feasible, under guidelines established by the state. He also expects to see more diversified economy, a better climate for the telecommunication industry and more workforce development programs.
The reaction from business and political leaders at the press conference to announce Schumpert’s appointment – was as positive as the Providence Business News poll results. Schumpert is not expected to run into problems during Senate confirmation hearings.
Frank Montanaro, president of the Rhode Island AFL-CIO, said he liked what he heard from Schumpert. Montanaro was quick to credit the work of M. Paul Sams, the agency’s interim director, but said that it was important a permanent director be put in place.
”I guess we can get moving forward,” he said. “We agree that the state needs to move quickly at Quonset Point/Davisville,” said Montanaro. “That is where the economy is going to grow in Rhode Island.”
Kip Bergstrom, director of the Rhode Island Economic Policy Council, said he was looking forward to working with Schumpert. I look forward to working with him,” he said. “I’ve heard great things about him.”
Rep. Melvoid Benson, a North Kingstown Democrat, said she is looking forward to working with Schumpert and to determining how to best capitalize on Quonset Point/Davisville.
“We need leadership and we need jobs,” she said.
“My proudest moment”
Schumpert said his tenure at DBR has been an invaluable experience. He had been in the private sector for many years, and wondered if the public arena would be as fulfilling. He found that it was – and more.
”I have learned that state government can help individual citizens,” he said.
Economic development, said Schumpert, is a return to his roots. He has worked on economic development projects throughout the country, including Chicago, Los Angeles, Philadelphia and Boston.
”My vision of economic development is to build a sustainable, diversified economy,” he said. “An economy that will not just survive, but thrive in the future.”
Schumpert talked about technology. He talked about creating jobs in the state’s urban communities. And he talked about workforce development.
”We need to keep our young, talented people in Rhode Island,” he said.
The fact that Schumpert is African American was brought up at the press conference last Tuesday afternoon. Almond dismissed the issue out of hand.
”This is not about a minority appointment. It is about the Economic Development Corporation,” he said.
Schumpert called his appointment his “proudest moment.”
He plans to meet with EDC staff members and each member of the EDC’s board of directors in the coming days. He said he doesn’t foresee any wholesale management changes at the agency, the infamous credit card fiasco notwithstanding.
”My intention, should I be confirmed, is to hit the ground running,” said Schumpert.
Running into an opportunity – leaving a mark.
