Siyeh Corporation
Blackfeet
Nation
Contact:
PO
Box 1989
109
North Public Square
Browning
, MT 59417
Phone:
406-338-5669
Website:
www.siyehdevelopment.com
For
years the Blackfeet Nation struggled to create
sustainable tribal enterprises that could
produce revenue for the Nation and meet the
needs of its citizens for jobs and services.
Many of these efforts did not succeed because
of conflicts within the tribal government.
In 1999, the Nation tried a new strategy.
It established a federally chartered, tribally
owned corporation designed to manage businesses
on behalf of the government and protect those
businesses from inappropriate political influence.
Named after a great Blackfeet warrior known
for his fearless leadership, the Siyeh Corporation
today runs multiple businesses and promotes
economic growth and stability while preserving
Blackfeet cultural and traditional values.
Siyeh is changing the economic landscape of
an impoverished reservation, increasing the
Blackfeet Nation's revenues and enhancing
Blackfeet self-government.
With
its tribal government headquartered in Browning,
Montana , the Blackfeet Nation is located
in a rural and remote part of the state. The
isolated location of the Nation has made employment
opportunities and economic development difficult;
the average income of its tribal citizens
falls well below both the state and national
averages and there are few job opportunities
available locally. To compound the problem,
there is also a higher cost of living in the
area. Many tribal citizens must travel over
a 100 miles to reach a city where basic supplies
like groceries and dry goods are available
at more reasonable prices. In the past, federal
funds constituted a large portion of the Nation's
budget, along with royalties from oil and
natural gas production. However, changing
market conditions and federal priorities have
affected tribal funding and made self-sustaining
economic development efforts ever more pressing.
In
an effort to address these concerns and to
ensure the economic self-sufficiency, the
Blackfeet Nation established a number of tribally
owned and operated businesses over the past
twenty years. Unfortunately, few of these
businesses were able to become well established
or make lasting financial contributions to
the tribal economy. The Nation operated under
a model where the Tribal Council, whose members
were political leaders but not necessarily
experienced business people, made most of
the operating and financial decisions of these
business endeavors. The Nation felt that a
new model of business development and economic
enterprise was needed. In 1999, the Blackfeet
Nation reshaped its approach to sustainable
business activity and improved its economic
growth and established the Siyeh Corporation,
a for-profit business.
As
tribal nations move into the twenty-first
century, economic development remains a top
priority. Rural tribes face increased challenges
to developing businesses and employment opportunities
due to remote locations and lack of reliable
transportation. Additionally, the business
sectors and political sectors of many tribal
governments are not separate and distinct,
often creating upheavals in business endeavors
as political power factionalizes or changes
hands. Creating separate, stable, and independent
environments for business activity helps tribal
nations meet their goals of economic self-sufficiency.
When
the Blackfeet Nation was organized under the
Indian Reorganization Act (IRA) in 1935, it
was established as both a political entity
and business corporation, with every tribal
citizen also a shareholder. Under this organization,
the nine-member Blackfeet Tribal Business
Council manages both the political and the
business affairs of the Nation and is responsible
for protecting and developing the interests,
education, health, well-being, and resources
of its tribal citizens. Part of this responsibility
lies in successfully increasing economic development
and in creating expanded employment opportunities
for its tribal citizens. Due to a variety
of factors, the sustainability of business
ventures has been problematic for the Nation.
The Tribal Business Council recognized the
need to embrace a new strategic vision of
how business activity in the Nation would
be conducted.
In
response to this need for change, a member
of the Board of Directors approached the Blackfeet
Tribal Council with a new model for economic
development that differed dramatically from
the one in place. This model, initially provided
for in the IRA, allows for a separation of
business operations from tribal politics through
the creation of an independent committee to
manage business affairs. In 1999, after a
great deal of struggle and debate, the Blackfeet
Tribal Business Council approved the establishment
of the for-profit Siyeh Corporation as a federally
chartered corporation, under Section 17 of
the IRA.
The
Siyeh Corporation was established to generate
business, produce revenue, spark job creation,
and advance economic self-determination. Taking
its name from a Blackfeet warrior who was
revered for his fearless leadership, the spirit
of Siyeh, according to tribal elders, embodies
independent thinking, shouldering responsibility
for the work to be done, and taking bold action.
The Siyeh Corporation was designed with these
things in mind. Today the Corporation controls
six tribal businesses that all turn profits
and employs over 100 people. In 2004, the
payroll exceeded $1 million.
Several
aspects contribute to the Siyeh Corporation's
ability to achieve its stated mission of “promot[ing]
economic growth and stability for the Blackfeet
Nation while preserving [their] cultural and
traditional values.” Among these important
aspects was the decision to incorporate under
a federal charter to clearly separate the
business from political changes. This allows
the development of a sound business model
based on good business practices, encourages
the strong commitment of the Corporation to
the Blackfeet community and its tribal citizens,
and supports Siyeh's entrepreneurial spirit.
The
Corporation founders knew they needed multiple
layers of protection from potential political
instability so they incorporated under Section
17 of the Indian Reorganization Act. Section
17 provides for the creation of a business
corporation to handle commerce matters separate
from the governmental affairs handled under
a tribal constitution. In approving this process,
the Blackfeet Tribal Business Council is able
to establish a new “hands-off” attitude towards
business practice by the Nation, emphasizing
trust in the ability for separate sectors
to handle specific matters for the overall
increased wellbeing of the Nation.
The
creation of a sound business model allowed
Siyeh to remain independent and to institute
good business practices. The Corporation's
business governance model specifically restricts
Tribal Council members from being a part of
Board of Directors. The Board is comprised
of six tribal citizens appointed by Tribal
Council that serve staggered terms. Board
members are required to either have a four-year
degree from an accredited institution or have
minimum one year of management experience
with a successful business. While the Tribal
Council relinquished authority to direct day-to-day
corporate affairs, the Board of Directors
remains accountable to the Blackfeet Nation
and its citizen shareholders.
The
independence of this model made it possible
for Siyeh to survive a political power change
before it even opened its doors . The Tribal
Council that approved the incorporation documents
and submitted materials to the U.S. Department
of Interior (DOI) was no longer in office.
Every person on that Council was replaced
in the next election. When the DOI approved
the charter and sent the materials back to
the Blackfeet Tribal Council, this new Council
approved the charter as well. To date, Siyeh
has worked successfully under three different
Tribal Councils.
The
soundness of the Siyeh's business model is
also demonstrated by a high level of accountability.
To better provide for the implementation of
basic principles of operations management,
the Board requires the accurate and timely
use of financial statements provided by a
certified public accountant for decision making
and regular external audit schedules. In addition,
Siyeh start reports regularly to the Tribal
Business Council, federal regulators, and
lenders.
Siyeh's success is
also tied to its dedication to an entrepreneurial
spirit and its willingness to explore new
markets and business concepts. This “can-do”
business attitude enables the Corporation
to create new business opportunities. Siyeh
turned several businesses that were on the
verge of closure into profit generating operations.
For example, Glacier Peaks Casino was under
threat of being shut down by the National
Indian Gaming Commission for failing to meet
gaming regulations. Seven months after taking
it over, the Casino not only met all compliance
regulations, but it also began generating
a profit. Today Glacier Peaks employs over
fifty-seven people and is open seven days
a week. In 1999, Siyeh acquired the local
cable television system in the Browning and
East Glacier Park region that was close to
losing programming. Under Siyeh's management,
the renamed StarLink Cable increased its customer
base; upgraded its service; and provided local
programming, including tribal events and activities.
Siyeh has also established a number of new
businesses over five years. Kimi Bottled Water,
Commemorative Coins, the Discovery Lodge Casino,
and Blackfeet Heritage Center & Art Gallery
have all been profitable ventures. By strategically
diversifying its business interests, Siyeh
Corporation has been able to manage and sustain
economic growth while protecting itself from
major setbacks should a future business fail.
A final contributor to Siyeh's success lies
in its commitment to serve the needs of the
community. In 2002, Siyeh established the
Blackfeet Heritage Center & Art Gallery
to exhibit and sell a large selection of authentic,
historical and traditional American Indian
items. The Heritage Center not only promotes
Blackfeet artisans by giving them a place
to market their work, but it also provides
a way for the Blackfeet Nation to share its
heritage with the community and visitors.
The creation of Kimi Bottled Water was a way
to address the poor water quality available
in the region. Kimi offers delivery of five
gallon water jugs and installation of water
dispenser systems to tribal citizens and non-Natives.
Additionally, StarLink provides Native programming
and serves as a community network. From providing
quality Native programming through its cable
company to ensuring its construction is environmentally
conscious, Siyeh exhibits community values
while advancing self-sufficiency.
The Siyeh Corporation has proven that good design
and entrepreneurial spirit can lead a nation
to realizing its goals of economic self-sufficiency
and revenue generation in a variety of business
settings. Incorporating under a federal charter
makes it possible for the Blackfeet Nation to
utilize the government's IRA constitution to
its advantage. By establishing a separate Board
of Directors, Siyeh is able to remain independent
from changes in the political leadership of
the tribe. In doing these things, the Siyeh
Corporation created stable business operations
in a changing political environment. This model
enables the Blackfeet Nation to create much
needed employment opportunities, provide goods
and services for the community, and generate
strong revenues for a better future for its
citizens.
Lessons: