RedPrairie Corp., Waukesha, has integrated its LENS global visibility solution with active radio frequency identification (RFID) technology from RF Code, Inc. and Avery Dennison. The agreement will allow RedPrairie to provide a total solution for global asset and inventory visibility and security, integrating its software and optimization tools with active RFID reader technology from RF Code and the active RFID Secure Strap from Avery Dennison for container security.
RedPrairie Corp., Waukesha, has integrated its LENS global visibility solution with active radio frequency identification (RFID) technology from RF Code, Inc. and Avery Dennison. The agreement will allow RedPrairie to provide a total solution for global asset and inventory visibility and security, integrating its software and optimization tools with active RFID reader technology from RF Code and the active RFID Secure Strap from Avery Dennison for container security.
Froedtert Hospital
The Friends of Froedtert Hospital Foundation received $40,000 from the Lance Armstrong Foundation (LAF) to help fund Froedtert Hospital’s palliative care program for cancer patients. The Froedtert Hospital palliative care program was awarded grants for adolescent/young adult issues, physical activity, survivorship education and palliative and end-of-life care. The Froedtert Hospital palliative care unit opened in 1998 and offers inpatient and outpatient services, including pain management and symptom control, medical decision-making and coordination of care for quality of life.
Creative Colors International, Inc.
Creative Colors International, Inc. (CCI), Milwaukee, has added a fifth mobile unit, expanding the company’s operation from Sheboygan to Kenosha. The mobile units are equipped with tools to provide material repair services, including an air compressor, generator, air hose retractor and heat guns and dyes. The additional mobile unit purchase was prompted by sales growth. CCI, established in 1999, announced 2003 sales exceeding $400,000 and plans to surpass $500,000 in sales for 2004.
Mercury
Mercury, Elm Grove, has developed two educational videos for the Wisconsin Council on Children and Families and the Wisconsin Department of Public Instruction. Mercury wrote, produced and directed the videos in conjunction with the "Think Big. Start Small," statewide public outreach campaign designed to increase awareness of the importance of quality early education and care. One video promotes collaborative community approaches to 4-year-old kindergarten in Wisconsin. The second video educates viewers on the advantages of inclusion of all 3 to 5-year-olds with disabilities in Wisconsin to early education settings. Recipients of the videos include school administrators, early education staff, Head Start and child care directors, legislators and members of business organizations.
Ameripay Payroll Ltd.
Ameripay Payroll Ltd., Elk Grove Village, Ill., has opened its first Milwaukee-area office, located in Summit Place at 6737 W. Washington St., Suite 1111, West Allis. The payroll and human resource services company targets small and mid-sized businesses. Ameripay has had more than 60 metropolitan Milwaukee clients since it began its Milwaukee sales one year ago, and expects to have more than 100 clients by January 2005 and more than 200 by 2006. Tom Quinlan is the sales manager for the new office.
Meyer & Wallis
Meyer & Wallis, Milwaukee, has gained media placement responsibilities for WCGV-TV UPN 24 and WVTV-TV WB 18. Both companies are owned by Sinclair Broadcast Group, Inc. Meyer & Wallis will place advertisements supplied by both The WB and UPN television networks as well as those created by the station’s in-house team. The advertisements will support programs such as "That 70’s Show," "Frasier," "The Simpsons," "Everybody Loves Raymond," "Friends," and "WB 18 News at Nine."
Promotional Marketing Group, Ltd.
Promotional Marketing Group, Ltd., Mequon, has developed an online promotional merchandise catalog (E-MPG), which interfaces with enterprise resource planning (ERP) procurement software. The company distributes promotional merchandise such as pens, clothes and mugs. The E-MPG allows Promotional Marketing Group to reduce the cost of producing promotional merchandise orders for clients, streamline the procurement of promotional items, eliminate waste and increase the return on investment (ROI) of the ERP system.
Piper Jaffray & Co.
Werner Brandenburg, assistant vice president of investments for Piper Jaffray & Co., Milwaukee, has formed an in-office partnership with Tom Warden, a financial advisor for the company, called Brandenburg-Warden. The team advises clients on financial strategies including retirement planning, estate planning, third party money management, asset allocation, banking and insurance services. Brandenburg has been with Piper Jaffray since 1989 and Warden since 1997. Combined, Brandenburg-Warden has more than 50 years of experience.
SKF Precision Technologies
SKF Precision Technologies, Pa., is relocating to Grafton and received a $24,000 Economic Diversification Loan (EDL) grant from the state for a training program. The grant is part of Gov. Doyle’s Grow Wisconsin initiative and will pay for the manufacturing company to train 20 new full-time employees on the production and assembly processes for precision hydraulic actuators. The total cost of the training program is $48,000. The EDL program provides financial assistance to Wisconsin businesses interested in improving and expanding their operations.
Johnson Level and Tool
The Mequon-Thiensville Chamber of Commerce gave the 2004 Business of the Year award to Johnson Level and Tool, Mequon. Johnson Level and Tool has supported community projects including Crossroads Presbyterian Church’s youth mission program for Habitat for Humanity and constructing a playground in Milwaukee’s Berryland development. Bill Johnson is the owner of the company. The other nominee recognized for the Business of the Year award was Art Escape Gallery, Thiensville, for providing the community with a new venue for original art. Owners Kyle Zubatsky and Diane Arenberg are involved with Homestead High School’s student art exhibit and internship program, the senior art league exhibit, Camp Heartland and the Tartan Ball.
United Way
Beverly Njuguna, a self-sufficiency portfolio manager for United Way of Greater Milwaukee, received the 2004 Warner Bloomberg Award. Njuguna serves as lead staff in working with volunteers to oversee the impact of 60 programs in the areas of youth development, older adult disabilities, and employment. The Warner Bloomberg Award recognizes individuals at the national and international level who promote a vision of the future on the principles of social justice. Njuguna has been with United Way since 1999 and was chosen for the award based on her commitment to human rights, leadership and public service. She is the vice chair of the Milwaukee County Commission on Aging and a member of the Wisconsin Council on Long Term Care Reform, a former director of The Center for Successful Child Development in Chicago and a former regional field specialist for the Young Women’s Christian Association (YWCA).
K.B. & Associates
Kathy Bornheimer, owner of K.B. & Associates, Milwaukee, has written and published, "The Street Smart Approach to Job Search," a book based on articles she has written for the Employment Times when it was owned and published by Small Business Times. "The Street Smart Approach to Job Search" was released for public sale in September through Dorrance Publishing and discusses topics including career transitions, self defense for lay-offs and nontraditional approaches to job searches. Bornheimer is a career coach and public speaker.
Planning and Design Institute, Inc.
The Wisconsin Chapter of the American Planning Association (WAPA) presented awards to the Planning and Design Institute, Inc., Milwaukee, for three projects that featured plan development and urban design work by the company. One award was for the Fond du Lac and North Neighborhood Comprehensive Plan, which was recognized for being an outstanding planning document for a large jurisdiction. The second award was for the Westown Guidelines for the educational, informative and innovative elements of the planning tool. The guidelines include illustrations, explanations and color-coded "fa?ade-zones" to help simplify the process for applicants. The third award was for the River Shores Master Plan, a 38-acre industrial site in West Bend that is being redeveloped into a traditional mixed-use neighborhood. The master plan includes a central village green as well as a riverwalk with public vantage points overlooking the Milwaukee River.
Hays Companies of Wisconsin
Hays Companies of Wisconsin, Milwaukee, has developed a specialized property/casualty insurance brokerage unit to target clients in the construction industry. Kevin Carl, a recent hire at Hays, will head the unit. Carl has 10 years of experience working with business insurance for contractors. The unit will assist in creating balance between risk transfer insurance and risk retention to reduce the cost of risk and serve construction clients in the areas of loss control, claims management and risk consulting.
Reinhart Boerner Van Deuren, s.c.
Delos Lutton, an attorney for Reinhart Boerner Van Deuren, s.c., Milwaukee, was named president-elect of the Union Internationale des Avocats (UIA), an international association of lawyers, bar associations and law societies. Lutton is the third American elected president since the association was founded in 1927. The UIA is headquartered in Paris, France. Lutton practices corporate and international law, working with clients on international transactions including joint ventures and acquisitions, distribution and license agreements, export licensing, customs and international trade finance issues. He advises foreign businesses and investors on U.S. regulation of foreign investment and legal aspects of operation in U.S. markets. Lutton is a graduate of DePauw University and received his law degree from the University of Chicago Law School.
Shorewest Realtors
The Taxman Investment Company (TIC) has made Shorewest Realtors, Brookfield, its exclusive marketer for the Bayside Commons condominium development located at 905 W. Fairy Chasm Rd. The condominium community has 20 two-bedroom, two-bathroom units and heated underground parking. TIC specializes in real estate investment and management.
WomenConnected
Betty Arndt, vice president of communication for Johnson Controls, was recently named chairperson, and Mary Lodes, vice president of inpatient services at Waukesha Memorial Hospital was named chair-elect of WomenConnected, an organization of philanthropic women who support essential health care programs. WomenConnected enables women to pool their gifts to fund and direct the expansion of health care services at Waukesha Memorial Hospital. The 2004 funds for grants are expected to total more than $55,000.
Manpower, Inc.
Jeffrey Joerres, chairman and chief executive officer (CEO) of Manpower Inc., Milwaukee, was named Strategic Partner of the Year by The Business Council, an affiliate of the Metropolitan Milwaukee Association of Commerce (MMAC) dedicated to assisting with the development of Milwaukee-area minority businesses. Joerres was recognized for Manpower’s commitment to developing minority-owned businesses in the Milwaukee-area, including helping minority-owned companies increase the volume of their business through expansion.
Kingshead
Kingshead, a Milwaukee hair and wellness salon, has added a new hair extension system to its line of products for women. The extension system is called Hairdreams and is a patented advanced system that creates added hair strength, volume, body and length. The product originated in Europe and was recently introduced in the U.S.
Traveling Bags
Traveling Bags, Milwaukee, has moved from its location at 9227 W. Beloit Rd., Milwaukee, to a new location, 3314 W. Loomis Rd., Greenfield. The new location allowed for Traveling Bags to expand its retail space and offer new retail luggage lines and travel accessories.
Independent Insurance Agents of Wisconsin
Jeffrey Thiel of Fitzgerald, James & Kasten, Inc., has been elected as the president for the Independent Insurance Agents of Wisconsin. Thiel has been a member of the organization for 10 years and has served on the executive committee as president-elect and secretary-treasurer. He has also served on a number of committees including the best practices committee and the larger agencies committee. The Independent Insurance Agents of Wisconsin is a professional insurance trade association with 5,000 member agents.
R.A. Smith & Associates, Inc.
R.A. Smith & Associates, Inc., Brookfield, has been selected as one of the nation’s winners in CE News magazine’s "Best Civil Engineering Firms to Work For," for 2004. R.A. Smith & Associates and its National Survey & Engineering division ranked No. 12 out of 50 companies selected for recognition and had the highest ranking among Wisconsin firms on the list. Ninety-five companies competed. Other civil engineering firms from Wisconsin that made the list were Ruekert/Mielke, Waukesha; Mead & Hunt, Madison; and Kapur & Associates, Milwaukee.
Medical College of Wisconsin
The Medical College of Wisconsin department of biophysics has received a four-year, $260,000 scientific development grant from the American Heart Association to develop a multi-disciplinary non-invasive cardiac imaging program. Dr. Ming Zhao, assistant professor of biophysics, is the principal investigator of the grant, which is titled, "Development of a Targeted Contrast Agent for High Resolution Imaging of Myocardial Apoptosis by Magnetic Resonance Imaging (MRI). His research focuses on molecular imaging and development of target-specific contrast agents. Zhao has been with the Medical College faculty since 2003 and holds a doctoral degree in biochemistry from the University of Cambridge, U.K.
BIZNOTES FOR 10/15
Ouch!
Families in Wisconsin are spending more money on health care insurance premiums than they were four years ago, while their wages have risen at a much slower pace, according to a report recently released by Families USA, a nonprofit group for health care consumers.
The report says the average Wisconsin family is paying 49.3 percent more for health insurance premiums in 2004 than in 2000, while the same family’s earnings only rose 12.2 percent during that time.
Kathleen Stoll, director of health policy for Families USA, said the study has shown not only a dramatic increase of workers without health coverage, but also large numbers that are under-covered.
"They don’t have real security," she said. "We’re seeing a thinning of coverage, and in the end they will pay more one way or another."
According to the study, only seven states, including Minnesota and the District of Columbia, had higher health care premiums than Wisconsin during the same time.
That means Wisconsin’s workforce is being squeezed from both ends, as health care costs rise and wage increases can’t keep up, according to John Goldstein, president of the Milwaukee County Labor Council.
"The most dramatic change is that we have tens of thousands of workers that had health care coverage that no longer do," Goldstein said. "There are employers that no longer offer plans. And second, as employers require higher co-pays, there are fewer that can afford them."
Many workers are being told when they are hired by companies to directly apply for the state-run Badger Care, because the employer is no longer offering health coverage.
And even for middle-class workers whose employers offer health coverage, the costs can be staggering.
"Middle class workers are being squeezed on college tuition for their kids, gas costs, so many different places," Goldstein said. "No place is bigger than what they are contributing to their health care in terms of deductibles, prescription costs and copays. Some of the stories are pretty tragic when you talk to workers about health care. You can talk to someone who thinks they have a pretty good job, but their personal finances are devastated by a chronic illness even though they are insured."
People who have lost their jobs during the recession are even worse off, said Roger Hinkle, dislocated worker service manager for the Private Industry Council of Milwaukee County.
"I see plenty of people without insurance once they are laid off," he said. "That’s a humongous worry for people … Cobra coverage is very expensive. Whatever cushion was there is gone -you’re picking up the whole bill."
While workers are feeling the pinch from higher premiums, employers say there isn’t much they can do because health care costs are rising so much that they are forced to pass more of the costs on to their employees.
Joseph Priote, owner of the Layton Fruit Market on Milwaukee’s south side, has 10 full-time employees. He said the company, which has both a produce market and mail-order business, was again hit with skyrocketing employee health insurance rates this year, and he needed to explain that to his employees.
"They (the employees) pay $12.50 per week toward the insurance, and we pay the rest," he said. "It’s wonderful for them. But the biggest problem with that is they don’t understand what it’s costing the company. I was explaining to them that we’re paying $2.88 per hour for every employee for their health insurance, and they had no idea."
Priote said his company will likely have to raise the employees’ deductible or switch to a major medical style policy, resulting in him and his employees paying more out of their pockets for health care.
He’s bracing himself for more increases in the future.
"The full coverage (policies) like you used to have, you will never see again," he said. "Every year, we’re taking less service so our premiums go up 12 or 13 percent rather than 30 percent. You’re getting less service for more money."
Deron Butler, co-owner of Joseph Douglas Homes, is in a similar situation. His company, which has been in business since 1999, has only had a staff of full-time employees for two years.
Now, with 18 employees, Butler has had to deal with rising health insurance costs by both changing plans and raising deductibles.
"Every year, it’s getting harder to do," he said. "We’re running out of options. We’ve changed the styles of plans, and the employees and company are paying more."
Butler said his company will be going through the same cycle this year, as he and his partner review carriers and their rates. Ultimately, both his company and his employees will be paying more out-of-pocket costs for health care.
While small companies might be forced to deal with the issue on their own, some large companies in southeastern Wisconsin, including Rockwell Automation Inc., Harley-Davidson Inc. and Miller Brewing Co. have formed the Business Health Care Group of southeast Wisconsin. The group, which is seeking lower health care rates for its members, was formed as a limited liability corporation in January 2003.
Dianne Kehl, executive director of the group, said about 45 corporations have joined the coalition, working to make health care more affordable for employers and consumers in the Milwaukee area.
The coalition recently compiled a list of its goals, Kehl said. They are:
¥ To transform the health care delivery system through developing market driven strategies.
¥ Creating data transparency.
¥ Supporting consumerism.
¥ Collective purchasing.
¥ Promoting accountability for the consumer, the provider, the employer/sponsor and the administrators.
"The business community understands that it needs to stay united, stay active and involved in negotiating its health care costs," Kehl said. "They were passive in the past. That’s how we ended up with the providers being in control. We’re in the process of getting that control back."
Four of the group’s members have already implemented maximum allowable charges. Kehl said the group also is intending to start collective purchasing for its laboratory work, as well as for pharmaceuticals.
"One of our strategies is to create a high-performance network to work closely with the provider community," Kehl said. "We want to work together to create a solution that is focused on good outcomes."
Those outcomes are in both the best interests of the corporations and employees that are purchasing health insurance, Kehl said.
"It’s a severe economic issue for our community," she said. "If they (health providers) drive jobs out of Milwaukee, they’ll be the loser, because no one will be there to buy their services."
October 15, 2004, Small Business Times, Milwaukee, WI
Catch the ‘Spirit’
There’s a positive buzz about Milwaukee. The word is spreading. We’re a great place to visit. That’s what happens when a city invests $2.5 billion in new tourism attractions.
When working to attract conventions, meetings and tourists to Milwaukee, we’re engaged in a daily competitive battle with other mid-sized Midwestern cities such as Cincinnati, Indianapolis, Cleveland, Columbus, Kansas City, St. Louis and Minneapolis-St. Paul. How do we separate us from this competitive clutter and convince these groups to make Milwaukee their destination of choice?
First, we have to differentiate our city from the competitors by highlighting what’s new and different. We’ve been successful in moving people’s perceptions of Milwaukee as just another old rust belt industrial town because of our investment and commitment to improving our tourism product. We’re really a "turnaround" city.
Two recent events illustrate what we’re doing at the Greater Milwaukee Convention & Visitors Bureau to market the city.
A piece of Wisconsin came to the nation’s capital last month when Milwaukee resident, film and television composer Peter Buffett brought his spectacular homage to the American Indian, "Spirit – The Seventh Fire" to the National Mall to coincide with the opening of the Smithsonian’s National Museum of the American Indian. The show, a dramatic blend of music, dance and film, enjoyed a successful run at our lakefront before heading to Washington.
We used this special Milwaukee-originated project to showcase our city to about 75 key association executives and meeting planners in the Washington, D.C., area on Sept. 23.
Peter attended the GMCVB-sponsored reception and dinner prior to the performance, gave some remarks on the creation of the show and explained that he and his wife, Jennifer, chose many years ago to make their home in Milwaukee vs. any other place in the world because it provides the diversity and cultural and creative environment that is often void in other places such as Hollywood.
The dinner was followed by a performance of the show on the Mall before a capacity and enthusiastic crowd. The energy that night was electric, and the Buffets and Milwaukee all received curtain calls and rave reviews from our invited guests.
We had another opportunity to get in front of key meeting planners when we showcased five new Milwaukee area tourism products during the American Society of Association Executives (ASAE) recent annual meeting (held this year in Minneapolis). More than 700 exhibitors participated in the marketplace expo, including representatives from most major cities throughout North America.
With this many exhibitors, standing out from the crowd presents a challenge.
Each year we exhibit, we try to showcase what’s new and different in Milwaukee to help create a buzz and differentiate us from the pack of mid-sized cities. This year was no exception. We constructed a booth around the new Milwaukee Public Market (scheduled to open next year in the Third Ward). The booth was stocked with fresh fruit, produce and flowers. We created the booth around the theme, "Watch Milwaukee Grow" and showcased four other future Milwaukee area attractions – Pier Wisconsin (2005-06), the Bayshore Mall Expansion (2006-07), Pabst City (2006) and the Harley-Davidson Museum (2007-08).
The booth, designed and built by Milwaukee-based Derse Exhibits, took home second-place honors in a very competitive field and generated quality leads and requests for proposals.
These five projects alone represent close to $1 billion in new tourism investment and provide us with the "tools" needed to give us a competitive advantage when marketing the city. Pabst City and Bayshore play an important role in our tourism mix because retail accounts for about 32 percent of all visitor dollars spent in the area. The Bayshore Mall and Pabst City project fill an important gap in that area as visitors continuously tell us we can use more shopping options.
The Harley-Davidson Museum, like the Rock and Roll Hall of Fame and Museum in Cleveland, represents a one-of-a-kind tourism attraction that will truly help set us apart from our competitors.
Like our theme, we need to continue to develop unique visitor attractions that will build positive awareness for our city and continue to "grow" our convention and tourism business and increase the economic impact our industry brings to the Milwaukee area. This is our mission at the GMCVB. And while construction has begun for Pier Wisconsin, the Milwaukee Public Market and Bayshore, we need to keep this positive momentum going with Pabst City and the Harley-Davidson Museum. The more shovels we have in the ground, the faster we will "grow" as a tourism destination.
In town this month
This month, Milwaukee plays host to the following conventions that collectively bring in about 13,000 people and pump approximately $4.7 million into the local economy:
¥ Wisconsin Counties Association, Oct. 3-6
¥ Society of Women Engineers, Oct. 12-18
¥ Reiman Media Group, Oct. 22-23
¥ National Coalition of Title One Parents, Oct. 25-Nov. 1
Doug Neilson is president and chief executive officer of the Greater Milwaukee Convention & Visitors Bureau. For more information on what’s happening in Milwaukee or comments on this column, please check our Web site at www.milwaukee.org.
Ocober 15, 2004, Small Business Times, Milwaukee, WI
The ultimate health care motivator: CA$H
Like many other Milwaukee-area companies, Helwig Carbon Products Inc. has seen the cost of its health insurance premiums increase 14 to 15 percent annually in recent years.
"We had a very generous health insurance program for our employees over the years," said Paul Casper, general manager for Helwig Carbon Products. "It was a family-run business, and they took care of their employees."
However, those generous health benefits, combined with a sluggish economy, were hurting the northwest Milwaukee manufacturing firm’s bottom line. In addition to asking employees to pay a greater share of their health insurance costs, Helwig executives decided that improving the health of their employees, and therefore reducing their utilization of the health care system, would help reduce health insurance claims.
Reduced claims ultimately would lead to lower health insurance costs, the executives thought.
The question was, how could Helwig motivate its employees to become healthier?
The company turned to one of the oldest motivators of all time. Cash.
The firm offered its employees a reimbursement of up to $250 per year to join a health club, receive acupuncture treatments, take part in a weight loss or a smoking cessation program or receive any other form of health care not covered by insurance.
However, the response from Helwig employees was tepid. Only about 10 percent of them took advantage of the reimbursement.
"It wasn’t as big as we would have liked," Casper said.
The firm has had more success in convincing its employees to participate in a health risk assessment program. Employees were paid $25 to participate in the program.
"You establish a baseline and measure your progress from there," Casper said.
Employees who stay on the program will have less money deducted for health care premiums from their paychecks. Single employees, for example, will pay about $20 less per month.
So far, about 75 to 80 percent of the company’s employees are participating in the health risk assessment wellness program.
To help employees improve their health, the company also made changes in its cafeteria to offer healthy food options, including a salad bar. About 15 percent of the employees participate in a lunchtime walking program. Eventually, the company plans to offer wellness classes for employees on things such as losing weight and smoking cessation.
In a typical health risk assessment program, employees get their cholesterol level, blood pressure, height and weight measured. They also fill out questionnaires about their lifestyles and their family medical history. The results of the tests and surveys are confidential and are only provided to the employees. The company receives a report summarizing the overall health status of its employees, but no information about specific employees.
The employees then receive counseling from firms hired by their employer to administer the tests, on how to improve their health. Employees with serious health concerns are referred to physicians.
Harley-Davidson Inc. has had success using small incentives to encourage employees to participate in the company’s wellness program, said Rosemary Curtin, health promotion and wellness manager for the motorcycle manufacturer.
Harley provides free pedometers, which cost the firm about $9 each, to employees who participate in the company’s walking program. Employees who stick with the program receive rewards such as duffel bags, athletic socks, water bottles, healthy cookbooks, T-shirts and $20 book store gift certificates.
The company has tried giving away leather jackets in a raffle for walking program participants. The company also once gave a mountain bike and helmet to the winner of a raffle among its top walkers.
Those bigger prizes, which only a few received, did not generate the same interest as the smaller prizes that many employees received, Curtin said.
"Incentives worth over $25 are not any more affective than those that are worth $25 or less," she said. "It really worked better for us if every employee gets a little something."
The Greendale School District offers incentives to employees who participate in its wellness program. The employees must undergo a health risk assessment, promise not to smoke and exercise three times a week for 30 minutes. The employees are on an honor system.
Those who participate have their health insurance payroll deduction reduced by about 13 percent. That means about $160 in the pocket of an average employee, said Erin Gauthier-Green, director of business services for the school district.
"We started this last year," she said. "All but one of the teachers signed up to do this. They know it’s something they should be doing anyway. With a little incentive, (they think) ‘How can I not do it?’"
The district shared the costs of pedometers for employees and included the wellness incentive in its teacher contract negotiations.
"Our (health insurance costs) have gone up 50 percent in three years," Gauthier-Green said. "That’s a huge increase. We have to come to a way of getting some control over these increases."
Wisconsin Film & Bag, based in Shawano with a division in Hartland, recently started a wellness program. The company plans to do a health risk assessment of its employees and break down the employees into three groups, based on their levels of health. The healthiest employees will pay less for health insurance than moderately healthy employees, who in turn will pay less than unhealthy employees.
"People who score better get a lower rate," said James Feeney, general manager for Wisconsin Film & Bag’s Hartland division.
Businesses with wellness programs see them as a tool to reduce their health care costs.
However, for years, many Milwaukee-area businesses did not think wellness programs were worthwhile, said Jo Steinberg, president of Milwaukee-based Midland Health, which provides on-site wellness testing and follow-up services for business that have health risk assessments for their employees.
That view has changed in recent years as health care costs have risen dramatically.
"In the past three to four years, rates have gone up so high, businesses are throwing up their hands and saying, ‘Oh, my God. What do I do now?’ Then we walk in the door and help them," Steinberg said.
The return on investment for a corporate wellness program is about $1.50 to $4.50 for every dollar spent, Steinberg said. Preventative medicine costs much less than treating an illness or disease.
"Once (businesses) see the value and the results, they continue doing it," she said.
However, the wellness programs are also a benefit that improves the health of employees. In some cases, the health risk assessments catch serious health problems, such as diabetes or extremely high cholesterol levels, that employees were not aware of and need treated right away.
Preventing a serious health problem can not only save an employee’s life, it eliminates a major health care expense. About $65,000 can be saved by preventing a heart attack, Steinberg said.
"Eight percent of your employees take up 80 percent of your health care costs," said Daniel Burkwald, president of Burkwald & Associates Inc., a Pewaukee-based benefits advisory firm.
Businesses are becoming more creative with the incentives they offer their employees to participate in wellness programs, Steinberg said. Some firms make health risk assessments mandatory before employees can receive health insurance coverage.
Others offer contributions to an employee’s health savings account of $20 to $50, she said. Some employees get time off for participating in wellness programs.
Some businesses hand out $20 or $10 gas cards as incentives if their employees and their spouses take a health risk assessment, said Courtney Schulteis, communications specialist for Burkwald & Associates.
Gift certificates to a healthy restaurant, a grocery store or a sporting goods store, as well as lower health insurance paycheck deductions or simply cash incentives are used by different companies as wellness incentives, she said.
"The more money you allocate toward incentives, the more eager people are to participate," Schulteis said.
The wellness programs have paid off for the businesses that convince their employees to participate, Burkwald said.
"We are seeing clients being rewarded with single-digit renewals (for health insurance) in a double-digit environment," he said.
"The ones that took a gamble on it and did it have reaped the rewards," Steinberg said.
October 15, 2004, Small Business Times, Milwaukee, WI
Leadership credibility
Question:
Our executive team is made up of four people. We meet regularly to discuss company performance and related issues. Outside of these meetings, the president and the vice president of finance and accounting spend the most time together. Here’s the problem: they seem to have a different view of how things should be run than the vice president of operations and me (the vice president of sales and marketing).
This plays itself out in many different ways. Here’s an example: at the last management team meeting, we got into the topic of performance appraisal and how we need to identify the poor performers in each work area so we can meet our goal of 6 percent forced turnover this year. It’s not a real popular idea, but one that is financially driven. Here’s the problem: during the discussion, as some people were talking about how hard this policy is to carry out at a personal level, the president said something close to the following, "You have to come to grips with this. It’s time to stop complaining and start acting. If I had to, I could go around this room and identify the poor performers. I could do it right now and eliminate the people I’d identified. That’s what all of you need to do." This was a bombshell with a lot of fallout. The story got out to a lot of the employees. I think a more sensitive response would have been the right way to go. It would have appeared that he had a heart. Instead, he came across unfeeling and cold.
Other issues have to do with his ideas about how things should be run. He said things like, "We need to start acting like leaders and tell people what to do. We’re doing too much hand-holding of these crybaby employees. We’re in charge, they’re not." These statements directly contradict our mission statement and ongoing process improvement practices. There are so many examples like these that I’ve lost count.
The bottom line is that tension is high in the executive team. Morale and trust are very low among the managers. Yet, he walks around like everything is rosy and we’re really doing it. The reality is that most people can’t wait until he leaves.
What is your take on this situation?
Answer:
This is a very difficult situation. As I have noted in a number of my recent articles, corporate culture is shaped from the top. The tone at the top in your company appears to be one of detachment, conflict and heavy-handedness. This is exacerbated if your actions (i.e., eliminate 6 percent of the employees) are at odds with your words (i.e., a mission statement that emphasizes how important the employees are to the company). In short, these kinds of contradictions erode credibility and trust.
When there is executive-level strife, this ripples throughout the organization at-large. That is why team charters are so important. The team has to commit to certain principles and actions and hold itself accountable. It sounds to me like this is not happening. It sounds like there is a lot of power-based maneuvering going on.
This is a short-term approach. Results may be generated, but they will be in spite of the executive behavior, not because of it. Over time, punitive, intimidating actions wear thin. Individuals who act this way are inevitably viewed in unfavorable terms. In short, they are not viewed as credible. Employees don’t like them. Employees don’t trust them. And, employees don’t want to be around them.
James Kouzes and Barry Posner have done a lot of work over the years on leadership practices. Among their many excellent published works are "The Leadership Challenge," "Encouraging the Heart," and Credibility." This last work was updated in a 2003 edition.
Over 20 years of research has led these authors to conclude that credibility is the building block upon which all leadership is built. Cast in today’s business climate, where ethics and values are being examined with renewed seriousness, I would say that a leader’s credibility is more important than it has ever been.
Kouzes and Posner suggest that there are four fundamentals to developing leadership that has credibility. They are:
Â¥ Character counts
The following anonymous poem illustrates the importance of character. "Be careful of your thoughts, for your thoughts become your words. Be careful of your words, for your words become your deeds. Be careful of your deeds, for your deeds become your habits. Be careful of your habits, for your habits become your character. Be careful of your character, for your character becomes your destiny."
Â¥ Individuals act, organizations create cultures
Consistent with the poem cited above, individuals need to take care of their own actions. This means doing the right thing all of the time, not just some of the time. Someone once said the definition of character is, "doing the right thing when no one else is looking." When an organization is comprised of people who do the right things, a powerful corporate culture is built, culture being the organizational equivalent to individual character.
Â¥ Our system is based on trust
In the wake of the financial scandals of the past few years, many people have come to doubt the information and data that their companies give them. Skepticism about the books being "cooked" is common. Worry about the company’s future is common, too. Only when we have faith in our leaders and their actions do we have trust. Only then do employees feel connected with the company.
Â¥ Leadership is a dialogue, not a monologue
For so many reasons, one-way communication (i.e., top-down) is simply not the mode to use when leaders wish to relate to employees. If organizational initiatives are perceived to be something that are done to the employees, rather than with them, today’s, "what’s in it for me?" workers are simply not going to tolerate that for very long. This aspect of corporate culture (i.e., inclusion, participation, openness) is clearly influenced by the actions (and in-actions) from the executive suite.
So, how does your leadership stack up against Kouzes’ and Posner’s four fundamentals? Not very well, I’m afraid.
What to do about it? Well, one way to get this out in the open is to gather feedback from various sources in the organization and present it for discussion within your executive team. A survey, some focus groups, some interviews, etc. could be undertaken to collect perspectives. Discussion of the findings by the executive team might lead to acceptance of the situation and ownership of the issue.
Subsequently, some action steps could be outlined to begin to rebuild the credibility that has been lost. That is, of course, entirely dependent upon each individual being willing to take care of his or her part. This includes the president, who is the most important person in the organization in terms of shaping the corporate culture.
Ultimately, each of you in the executive team has to reflect on the cost of carrying on as you have. As Lao-Tzu observed long ago in the Tao Te Ching, "Harsh interventions are a warning that the leader may be uncentered or have an emotional attachment to whatever is happening. A special awareness is called for. For even if harsh interventions succeed brilliantly, there is no cause for celebration. There has been injury. Someone’s process has been violated."
What will you do to build a process of leadership credibility?
Daniel Schroeder, Ph.D., of Organization Development Consultants Inc. (ODC) in Brookfield, provides "HR Connection." Small Business Times readers who would like to see an issue addressed in an article may reach him at (262) 827-1901, via fax at (262) 827-8383, via e-mail at: schroeder@odcons.com or via the internet at www.odcons.com.
Ocober 15, 2004, Small Business Times, Milwaukee, WI
More Mito
Michael Feker, who opened his Il Mito restaurant in Walker’s Point about four years ago, wants to replicate his retail magic by adding to the recent real estate development in the Cathedral Square area in downtown Milwaukee. Feker is planning a mid-November opening for his newest venture, Los Mitos, at 790 N. Jefferson St. The space was formerly occupied by Ed Debevic’s and then Judy’s Family Restaurant.
The location for the new restaurant was particularly attractive, Feker said, because of its close proximity to Cathedral Square, an area with several office complexes and several well-known lunch spots.
Lunches, he said, will be a rich offering at Los Mitos.
"Think of lunch at Il Mito," he said. "Both will be similar in price, but the flavors and cuisine will be different."
The similarities between the two restaurants will stop there, Feker said. While Il Mito focuses on coastal Italian cuisine, Los Mitos will combine Mexican and South American flavors with "a twist of Californian," which Feker said will highlight the flavors of fresh ingredients.
"My wife is Mexican," he said. "I am in love with Mexican, South American and Argentenian cuisine. My palette is interested with these basic flavors, and I will let them speak for themselves."
Feker said the office development just around the corner from his new restaurant made the space on Jefferson Street ideal for his latest eatery.
"I have seen the tremendous growth," he said.
Construction of the office space at Cathedral Place, a 19-story office and condominium building, was completed in late 2003. In addition to about 205,000 square feet of office space, the tower also boasts 28 condo units on seven floors, 1,000 parking stalls and 16,000 square feet of retail space.
The Cathedral Square project was a joint venture between Van Buren Management, Inc., and New Land Enterprises. Van Buren Management also owns the building in which Feker is building Los Mitos.
Feker said the significant growth of the East Towne area was another reason to put his new, $320,000 restaurant in that section of downtown.
"Many people have paved the way, and I feel the area is ready for my kind of food, my approach to dining," he said. "Hopefully I will complement the area, the neighborhood and will have a chance to grow with it."
Steve Looft, director of development with Van Buren Management, said Feker’s restaurant was a perfect addition to the neighborhood.
"Michael is a wonderful chef – his culinary skills are incredible, and he has a great deal of ingenuity," he said. "The balance he and Los Mitos brings … the creative, interesting food will be an interesting development. It fits East Towne."
The two previous restaurants in the location were unable to create lasting success, but Feker believes that the area, and Milwaukee as a whole, is ready for his newest creation.
"Many of my patrons’ palettes have been taken for granted," he said.
While the restaurateur already is busy with the operations at Il Mito, often showing up for work there at 7 a.m., he said the extra effort to create the new eatery is not weighing him down.
"I am in love. I am so happy," he said. "I am hands on, and my contractor (Sinuhe Construction) is hands on with me. Now that everything is coming together, the details are all beautiful."
The new restaurant will be housed in about 4,900 square feet of space, with about 3,000 square feet devoted to seating between 100 and 120 customers. Additional seating will be available on Los Mitos’ patio along Jefferson Street during warm months.
Feker said diners who had been in the previous restaurants in the space that will house Los Mitos will be treated to a new experience because of extensive remodeling.
"What myself and the architects (have designed), they will not recognize it any more," he said.
The restaurant’s interior is a storm of activity, with workers creating its bar and finishing dining room fixtures in recent weeks. Much of the work on the kitchen is complete, large appliances such as the grills and an exhaust system will soon be delivered.
The success he has experienced with Il Mito has made opening his new restaurant possible, Feker said, but has required him to take a step back.
"Il Mito is the foundation for what I will do. It’s my baby," he said. "This will be the second. And after seeing the first able to walk, it doesn’t need me to hold its hand."
The success of Il Mito has also made it possible for Feker to open Los Mitos without a loan. The $320,000 budget he is working with for the new restaurant is his own money, much of which was made through Il Mito, he said.
Some might be cautious about using their own funds for a new restaurant, but Feker said his experience in opening restaurants in Milwaukee, California and elsewhere has given him all the tools he needs.
"I hate working for the banks," he said. "It’s like a carriage. You need all four wheels running really smooth. You need to know all it takes."
While Feker has worked over the past year on his new project, he has been working on the restaurant’s menu for about 12 years, developing its blend of cuisines and flavors into something truly unique.
"I have taken the approach of the Argentenian and South American cuisine with the influences of the Spanish and Italian and my Californian training," he said. "It is different, how you can relate the food, the complex flavors, the sense of the mouth."
The resulting combination, he says, will be an experience that Milwaukee’s diners have never had before.
"Every part of you will say, ‘Wow, what is that? How the hell did he do that?’" Feker said. "That’s what I’m going for. I want to be the one."
Los amigos build Los Mitos
A crew of about five men are working daily to ensure that Los Mitos, a new restaurant under construction along Jefferson Street in downtown Milwaukee, is ready to open for business in November.
While the new restaurant is a result of the vision, ideas and creativity of owner Michael Feker, its construction has been a reflection of a friendship.
Feker hired Sinuhe Cervantes-Razo’s Sinuhe Construction firm to build the interior of the restaurant, and the two men have been working together for months to get ready for the opening.
"We’re great friends, and we also see things eye-to-eye," Feker said. "Now that it’s all coming together, the details are beautiful."
While the job is the first large restaurant for Cervantes-Razo’s fledgling company, he has worked with family members on restaurant development and redevelopments such as La Fuente, La Hacienda and more.
Sinuhe Construction is based in Milwaukee and has four employees other than Cervantes-Razo working on the Los Mitos project.
Feker said that Cervantes-Razo was able to understand his vision for the restaurant from the beginning, making their work together easy even when the job itself was not. Cervantes-Razo said their friendship has made him want to do anything he can to make Los Mitos successful.
"We’re trying to make his ideas true," Cervantes-Razo said. "He’s really understandable. We’re watching all the details, trying to give what he’s looking for."
Cervantes-Razo also said he values the relationship with Feker even more than any positive advertisement he could get from working on the restaurant, which is in turn making him work harder there.
"I’m trying to work to give the best I’ve got because of the close relationship – that’s the most important part to me," Cervantes-Razo said. "He’s kind of an angel in my life. He not only supports me in business, he helped me in my personal life. And I have gratitude to him."
– Eric Decker
October 15, 2004, Small Business Times, Milwaukee, WI
State GOP’s “Jobs Agenda” includes plans to reduce health care costs
Three proposals to help reduce the soaring costs of health care are part of the "100 Day Jobs Agenda," which Republican leaders in the state Legislature will pursue during the start of the next legislative session in January.
The health care planks in the nine-point GOP agenda are:
¥ Making health savings accounts exempt from state taxes. Health savings accounts (HSAs), set aside by individuals for health care expenses, are already tax deductible at the federal level. However, Democratic Gov. Jim Doyle vetoed a state health savings account tax deduction bill passed during the last legislative session.
¥ Elimination of state taxes on the money individuals pay in health insurance premiums.
¥ Expansion of the health care co-op program. Last year, the legislature created, and Doyle signed, legislation for a pilot health care insurance cooperative program. The pilot program allows businesses and governments to join together to form health care cooperatives that take advantage of economies of scale to lower health care costs. The Republican leaders in the Legislature want to expand the program to allow more health care purchasing cooperatives statewide.
Making HSAs exempt from state taxes and eliminating state taxes on the money individuals pay in health insurance premiums would cost the state about $20 million in annual revenue, Sen. Majority Leader Scott Fitzgerald (R-Juneau) said.
"I think it would be $20 million well invested," he said. "(Rising health care costs) is a concern for individuals, but more than anything it’s a drag on the economy."
Sen. Minority Leader Jon Erpenbach (D-Middleton) criticized Republicans for failing to approve a proposal during the last session to help small businesses pool together to lower their health care costs.
"When you kill the small-business health care plan, like Republicans did last session, you better come up with some solid new proposals that actually help real working people get health care coverage," he said "This agenda lacks those kinds of serious new health care initiatives."
Erpenbach said the state should try to convince the federal government to allow the importation of prescription drugs from Canada. In addition, he said the state should require insurance companies to offer the same rates to small companies that they do to larger firms.
"If they can do it for the large company, they should offer it to the smaller company at the same price," he said.
Earlier this year, when he vetoed the proposal to make HSAs exempt from state taxes, Doyle said HSAs could decrease employer-sponsored insurance coverage, which he said were only viable for people with higher incomes and lacked a clear economic benefit. The Legislative Fiscal Bureau said the cost of the HSA tax exemption would cost $38.7 million over an eight-year period.
"We were in a very tight fiscal time," said Melanie Fonder, press secretary for Doyle. "The governor believes it is irresponsible to propose that much in tax breaks without knowing the benefits."
Assembly Speaker John Gard (R-Peshtigo) said Republicans will try to change Doyle’s mind about the proposed HSAs tax exemption.
"People are going to pay taxes on the money they set aside for health care. It’s unfortunate," Gard said. "We need to offer ways for small businesses and their employees to find savings in health care. This has the potential to be the most important piece of health care legislation in this state in a long time."
Republicans want to find a way to fix the private health care system, instead of going to a universal health care system funded by the government.
"The alternative for some is to just have the government pay for it," Gard said. "If you think health care is expensive now, just wait until it’s free."
Erpenbach said he does not support a total government takeover of the health care system, but he said the government should make sure everyone has health insurance.
"It’s not a luxury, it’s a right," he said. "Solving the problems with health care is the key to turning around the state’s economy."
Republicans control both the state Assembly and state Senate. It is unlikely that will change after the November election. Therefore, the elements in the Republicans’ 100 Day Jobs Agenda have a good chance of reaching Doyle’s desk.
The other elements of that agenda include proposals to:
¥ Freeze property taxes.
¥ Create more regulatory reform under the Job Creation Act Part 2. During the last session, Doyle and the Republican-controlled legislature agreed to pass the Job Creation Act, a regulatory reform package. Critics said the new law weakens the state’s environmental protections. But Doyle and Republican supporters said excessive red tape stifles economic development and job creation. Now, Republicans say more regulatory reform is needed to further stimulate the state’s economy.
¥ Provide a research and development tax credit.
¥ Expand workforce training and retraining programs at the state’s technical colleges.
¥ Create a rural finance authority to provide financial assistance to farmers and agri-businesses. Republicans say the plan is modeled after a similar program in Minnesota.
¥ Establish uniform training standards for health care worker training programs at the state’s technical colleges.
"The tax cuts and regulatory reforms we passed last session are working to give our job creators an assist and our economy a boost," Gard said. "(In) January, we’re going to pick up right where we left off and keep working to make sure existing jobs stay in Wisconsin and new jobs come here."
October 15, 2004, Small Business Times, Milwaukee, WI
Marcoux says more office buildings are coming to downtown Milwaukee
Despite what he described as a "fairly high" vacancy rate of office space in the downtown area, new Department of City Development Commissioner Richard "Rocky" Marcoux says several developers are interested in developing new office buildings downtown. Many of the office projects being contemplated would be mixed-use developments, he said.
The 18-story Cathedral Place building, a mixture of office and residential space developed by New Land Enterprises and Van Buren Management Inc. at 545 E. Wells St. is a recent example of a new downtown mixed-use building.
"There’s a number of projects on the table for additional office square footage downtown," Marcoux said. "There is a feeling these vacancies will be filled."
In his first weeks on the job, Marcoux said he has met with several developers planning downtown projects.
"I’ve been speaking about half the time with the downtown development community and half the time with neighborhood developers," he said.
Some city residents have complained that city neighborhoods have been overlooked in recent years while downtown attracted several developments. Mayor Tom Barrett has said improving the city’s neighborhoods is a priority of his administration.
At the same time, Marcoux said downtown development still must continue to maintain the economic health of the entire city and the region.
"Downtown is extremely important to the entire metro area," he said. "Every person in metropolitan Milwaukee has got to consider downtown as part of their neighborhood."
Marcoux said his department is reviewing several proposed projects, but he declined to disclose information about any of them.
City officials are still awaiting a formal proposal for PabstCity, the redevelopment of the Pabst Brewery on the west side of downtown. Marcoux said he has had discussions about the project with Wispark LLC, one of the project’s developers.
"PabstCity is an incredibly exciting opportunity for the city," Marcoux said. "Because of the complexity of that development Wispark is mulling its options. Do we have a plan the mayor can comment on? No. We’re expecting one."
Barrett and some aldermen have expressed concern about the $75 million in tax incremental financing Wispark said it needed for the project.
"The level of subsidy required to move that forward is going to be looked at very carefully," Marcoux said.
Barrett is examining the city’s policy for approving TIF districts.
"Those (projects) that are requesting taxpayer subsidy will be looked at very critically in terms of the public good," Marcoux said. "This is not going to stop development or inhibit development. We’ll be issuing a policy direction shortly."
Marcoux said he is excited about the potential for downtown to continue its renaissance. Projects such as the redevelopment of the Park East Freeway corridor and PabstCity will continue to spur development in surrounding neighborhoods, including Walkers Point, Brewers Hill, the Menomonee Valley and the Fond du Lac and North avenues area, he said.
The downtown area should continue to attract more residents, and hopefully some families, Marcoux said. The rising downtown population has already helped attract more stores at the Shops at Grand Avenue and more bars and restaurants in the downtown area, he said. Those new amenities should help lure even more residents.
"We hope this (downtown population) influx not only continues, but actually accelerates as more people realize downtown is an absolutely great place to be," Marcoux said.
Menomonee Falls
Milwaukee Western Bank plans to build a new headquarters and full-service banking center at the southeast corner of Appleton Avenue and Water Tower Place, according to village officials. Milwaukee Western Bank executive vice president Dave Davis declined to comment. The bank will build a two-story, 10,000-square-foot building on the 2.25-acre site. About 10 people are expected to work in the building. The bank plans to lease out space in the second floor temporarily and eventually grow into that space. Milwaukee Western Bank was established in 1914 and is owned by Capital Commerce Bancorp Inc. The bank’s current headquarters is at 6001 W. Capitol Drive, Milwaukee, and the bank also has a branch in Hartland.
Goodwill Industries plans to build a 19,000-square-foot store at the southwest corner of Water Tower Place and Monarch Lane.
Tate and Kim Boho plan to operate a bed and breakfast at N88 W16954 Main St. Tate Boho owns Design 2 Construct in Jackson.
Hartford
Don Seib plans to build an 18-hole miniature golf course south of Highway 60 and west of High Road. The project still must be approved by city officials. "Highway 60 is a fairly well-traveled highway," he said. "I just thought it would be something to add to the community." Seib owned a miniature golf course with batting cages, a driving range and a fitness center in Richfield, which he sold last year.
Kenosha
Bank of Kenosha plans to open two full-service bank branches at 8056 39th Ave. and 7201 120th Ave. early in 2005. They will be the first branches built by the company besides its headquarters branch at 5117 Green Bay Road. The 39th Avenue branch will be in a 5,000-square-foot building that was formerly occupied by the Department of Motor Vehicles. The 120th Avenue branch will occupy 2,500 square feet in a strip mall being built near I-94. The branches will expand the bank’s market presence on the west and south sides of the city, Kenosha Bank president and chief executive officer Gary R. Hutchins said. Established in 2000, Kenosha Bank now has $134 million in assets. "We’ve had a great four years so far," Hutchins said.
Milwaukee
Concordia University recently opened an adult education center with six classrooms, a bookstore, student lounge and office space above two clothing stores and a jewelry store at 4135 N. 56th Street, in the Midtown Center development. All of Concordia University’s adult learning degrees, including management and communications, liberal arts, criminal justice and human resources management, are available at this location.
Brookfield-based QPS Companies, Inc. recently opened a recruiting office at 3875 S. 27th St. The new office will mostly be used to recruit candidates for QPS’ office, professional and technical divisions.
Mt. Pleasant
Walgreens plans to build a store at the southwest corner of County Trunk Highway C and Highway 31. The Redmond Co. is the developer. The store will be built near a vacant shopping center where a Kohl’s Food Store closed last year and a Kies Pharmacy and a hardware store closed about two years ago.
New Berlin-based Anderson-Ashton Inc. is designing and will build a 13,700-square-foot retail center and 3,450-square-foot bank, southeast of Highways 11 and 31, near Regency Mall. Leases are still being finalized with several national retailers said Brian Fisher, project manager for Anderson-Ashton. Fisher declined to disclose the name of the developer or the potential tenants. A village official said the tenants will include Bank Mutual and Qdoba Mexican Grill. A gas station and two houses will be demolished to clear space for the development.
Richfield
Richfield-based Helsan Development Co. LLC recently purchased 100 acres in the Town of Richfield to develop a business park with commercial and industrial lots. The Endeavor Business Park will be located on the south side of Highway 145, adjacent to Highway 41 and within one mile of Highway 45.
Sussex
Madison-based Anchor Bank plans to build a branch at N64 W24879 Silver Spring Dr. The project still must be approved by village officials.
Andrew Weiland is the managing editor of Small Business Times. Send news about commercial real estate to andrew.weiland@biztimes.com or by calling him at (414) 277-8181 ext. 120. News can also be sent to Andrew Weiland, Small Business Times, 1123 N. Water St., Milwaukee, WI 53202.
October 15, 2004, Small Business Times, Milwaukee, WI
Keeping the faith
For the three Christian sisters who own the SB Fitness Complex at 8940 N. 85th St., Milwaukee, their business is a blessing.
After nine years of financial hardship involved with starting a health and fitness business, Joyce Harvey Davis, president, Barbara Harvey Carter, vice president of finance, and Elnora Harvey Wilson, vice president of administration, finally have success at their current 20,000-square-foot location.
The sisters’ story is one of faith and perseverance.
They ran a pilot program for one year in 1994 at the Milwaukee Enterprise Center, and for another year in 1995 at the Boys and Girls Club in Milwaukee.
"The six-week programs had participants coming in three times a week," Carter said. "We just wanted to see if it was possible, if people would come in for our workout sessions. We had 50 or 60 participants in the first year."
In 1996, the sisters purchased a small 2,500-square-foot site on Fond du Lac Avenue and Townsend Street and opened in 1997 what would be the first of three locations for SB Fitness.
"We decided to start a fitness business because of a combination of my background and the success of the pilot program," Davis said. "We had also conducted surveys that concluded that many African American men and women did not feel comfortable going to a fitness center, and we wanted to provide a place where they did feel comfortable."
Davis was an aerobic instructor for the Milwaukee County Parks Department when the sisters decided to go into business together. Combined, their backgrounds created the platform for running their business. Wilson has a background in human resources, finance and administration. Carter has a master’s degree in business administration and is a certified nurse. Davis has a bachelor’s degree in business management and is a certified personal trainer.
The sisters had success drawing in participants of all backgrounds and sizes for both the pilot programs and SB Fitness when the business began.
In 2000, SB Fitness leased a larger, 5,000-square-foot location on 64th Street and Capitol Drive in Milwaukee. In early 2002, somebody else bought the building where they were leasing space, and the sisters contemplated moving.
However, a fire at that building in June 2002 destroyed all of their equipment.
Even that disaster was not enough deter the three sisters.
"We always look at the glass as half full, not half-empty," Carter said.
With high expectations, Davis, Carter and Wilson combined their own contributions with $350,000 in loans from Legacy Bank, the Milwaukee Economic Development Corp. (MEDC), the Small Business Administration (SBA) and the Wisconsin Department of Commerce, to purchase their current building from the Wisconsin Athletic Club later in 2002.
Although Wisconsin Athletic Club owned the building, it had been vacant since 1999, when Bally Total Fitness pulled out.
SB Fitness and the three sisters have not looked back since reopening on 85th Street in 2003.
"We thought people would be lined up at the door when we first opened because we are the only fitness center that is a short distance from businesses and residences in the area," Wilson said. "But after opening, we realized that we are the new kid on the block and have to establish some name recognition."
By the end of 2003, SB Fitness had $250,000 in revenue and 400 members. So far in 2004, the membership has grown to 750. Carter declined to disclose this year’s revenues.
Although the sisters are targeting a market that can afford a private health club, SB Fitness stands out from its competition as a holistic health center focused on health, stress management and love.
SB stands for "spiritually beautiful."
"I had a dream in 1984 where the name ‘spiritually beautiful’ was given to me," Davis said. "Nothing came of it until 1991, but until then, I just kept that moment with me."
The sisters’ holistic approach transcends into the club. As members release tense energy on the Stairmaster, their minds are treated to jazz, big band and gospel music played over the loud speakers. The entire facility is decorated in a tropical theme, complete with a juice bar and an aquarium.
Wilson said focusing on the body, mind and spirit is both relaxing and can improve the health of the entire person.
"Many people are so busy throughout the day that they don’t take time to relax," Wilson said. "We can provide stress management exercises for them."
According to Davis, every exercise class begins with prayer and scripture reading and ends with stress management exercises and sharing.
"Most people know we are a Christian-based company," Davis said. "They can sense the environment is different here. They know that we do not force God upon them, we only show them love."
"We have members that are all different types of religions here," Carter said.
However, the biggest reason SB stands for spiritually beautiful may be because the club is not promoting rock-hard abs or losing 60 pounds in 60 days.
"It all goes back to too many people leading sedentary lifestyles," Davis said. "We as fitness experts need to teach them the seriousness of obesity and the risk factors that are involved. We need to tell them until they understand that if they do nothing, then nothing will be done."
SB Fitness stands apart from its competition beyond its holistic approach. The sisters also promote individualized service and a range of membership plans with daily, monthly and annual options.
The sisters have big plans for SB Fitness as the growth continues, including a socialization room, an outreach room for seniors and youth, an indoor pool and sauna and three quiet rooms with massage chairs or rocking chairs.
"If the demand is right, we would spend and expand. We already have aerobics instructors on a waiting list," Carter said. "We have wonderful plans but we have to be patient. Once we increase membership, we will have the money to saturate the market."
"It will happen sooner than we think," Davis said.
October 15, 2004, Small Business Times, Milwaukee, WI
Outsourcing help
When you stop to think about it, the truth is companies have been outsourcing business functions forever. If they didn’t, every business would have its own internal CPA firm, janitorial service, ad agency and print shop. It would be nearly impossible for small and mid-size companies to compete under such circumstances.
Businesses choose to outsource so they can hire an expert that they may not need for the long term. Sometimes they realize that the function is simply detracting from their core business. Bottom line, most businesses choose to outsource services to reduce costs and gain access to the specific talents and resources they need.
Sanjay Ahluwalia contends that the recent rise in outsourcing information technology (IT) services is no different. His firm, The Orb Group, helps small and mid-sized companies take advantage of the value and benefits IT outsourcing can provide.
"Large companies have greater access to the global marketplace," he said. "What we are really trying to do is serve as a bridge between small to mid-size American companies and Indian information technology resources."
An Indian-American, Ahluwalia saw the opportunity to blend his understanding of India’s culture with his knowledge of information technology and seized it. So far, his hunch has been a success. Providing services, including software development, supplemental IT staffing and business process outsourcing, The Orb Group exceeded budget project projections in its first two years by an average of 10 percent. This year, Ahluwalia says the company is right on target to meet its objectives.
He likes to consider himself a career entrepreneur and admits that his working style is not one that follows the status quo. Whether it’s the nearest Starbucks or the balcony of his condo in the city, The Orb Group’s business model allows him to work from anywhere. His schedule is one that requires him to work limited hours during the day to communicate with American clients and late nights to communicate with his team in India.
"When it comes to IT projects, companies have fears about losing control – about losing the ability to have the hands-on, internal, day-to-day contact with the professionals working on their projects." Ahluwalia said. "We take the lead to make sure everything goes right on behalf of our clients. We are a local firm, so they can talk to us, see us, whenever they want to be sure everything is progressing smoothly."
Client confidentiality is paramount. Currently, the firm is working with a national brand to develop an e-commerce Web site. The site will offer consumers a wide range of flexibility to "build their own" product, Ahluwalia said.
"In this particular case, the client needed the work done fast, had a limited budget and quite honestly, most firms would not take on such a complicated job under those circumstances," Ahluwalia said. "Not only did our team complete the job within their scope and parameters, but we were able to save them two-thirds of what other firms would have charged them."
While it’s doubtful that companies will seek to outsource regulated or core business functions, they will continue to seek resources to fill gaps in their skill sets. The single greatest benefit of outsourcing continues to be total added value – having access to a wider pool of resources or expertise at a competitive price.
KeleMarie Lyons is the founder of Pinnacle XL, a management-consulting company with offices in Milwaukee and Chicago. She can be reached via e-mail at kelemarie@pinnaclexl.com.
Ocober 15, 2004, Small Business Times, Milwaukee, WI
Just a Minute with Michael Wilson
Company address: 1918 MacArthur Road, Waukesha, WI 53188
Company Web site: www.graphics-factory.com
Industry: Commercial printing
Number of employees: 32
What was the smartest thing your company did in the past year?
"We upgraded our offset printing technology and computerized our bindery equipment."
What’s new at your company?
"We installed a 30-pocket computerized saddle stitch that sets up in less then two minutes. A new 6 color 23"x29" offset press with aqueous coating and complete computer controls. Pre-flight software accessible via our Web site for customer file transfers, automatic pre-fighting and soft proofs, all in less then two minutes. Xerox DocuColor with variable data. "
Do you plan to hire any additional staff or make any significant capital investments in your company in the next year?
"We have added three additional employees this year and plan to add two more in October. We plan on adding all new mailing equipment in 2005 and purchasing an 8,000-square-foot warehouse.
What will be your company’s main challenges in the next year?
"I think the challenges that we face are the same for all printing companies today. To continue to upgrade all equipment to meet the customers’ demand for faster turnaround times and control costs. I think Graphics Factory accomplished that in 2004."
What’s the hottest trend in your industry?
"Variable data printing and mailing services."
Do you have a business mantra?
"Always be innovative."
From a business standpoint, who do you look up to?
"Two people. The first is my father. He was also in the printing business for 45 years. The second person is a friend’s father. I watched everything he did from the sidelines. He’s the one who inspired me to start my own printing company in 1977."
What was the best advice you ever received?
"My friend’s father told me to never work for an hourly rate and never be the producer. What he meant was, don’t put yourself in a situation where you produce the income, like a doctor or attorney who bills an hourly rate. He also told me to surround myself with the best people, which I have."
What’s the funniest thing that ever happened to you in your career?
"It was 1970’s and I was working for a printing company in downtown Milwaukee. The Performing Arts Center asked me to print some stage money – $5’s, $10’s and $20’s. I laid out one of each on an 8.5×11 sheet and printed 500 sheets of green bond in black ink. At the time, we were printing this project, in walks a FBI agent. This company produced business cards for the agents in Milwaukee. He asked what we were printing. I laughed and said, ‘Money, today. ‘ He said, ‘Let’s see one.’ He looked it over and stated that I wouldn’t fool a blind man. I told him it was just stage money, and he left. About 2 hours later, two FBI agents walk in with a warrant for my arrest for counterfeiting. It took me 15 minutes to convince them that I meant no harm."
What do you like to do in your free time?
"I would like to race Indy cars, skydive and do extreme mountain skiing, but I don’t. I play golf with my best friend and wife, Kathy. Next would be playing golf with my kids, and last thing would be playing golf with anyone that will play with me."
Bavaria trip to reveal how business, environment co-exist
The Wisconsin Department of Natural Resources will lead a delegation of governmental, environmental and business leaders to Bavaria this month to study opportunities made available by the passage of Wisconsin’s new "Green Tier" legislation.
Green Tier is a Wisconsin initiative that seeks to improve both environmental and economic gain by encouraging and allowing responsible companies to improve their environmental performance while boosting productivity and cutting costs. German regulators and businesses have been working cooperatively for years in ways that mirror Wisconsin’s Green Tier legislation. In fact, the legislation borrowed ideas from Bavaria.
We want to understand how and why Bavarian businesses and regulators have worked together to further economic and environmental goals and examine specific initiatives and strategies that could energize economic development efforts that complement Wisconsin’s commitment not only to protect the environment, but to enhance it.
We are particularly interested in how a cooperative approach to growth and development works in situations where population densities are high and there are challenges to accommodate multiple needs such as energy, commerce, housing, transportation and environmental protection.
Wisconsin consumers have repeatedly told us they want us to co-locate public infrastructure facilities whenever possible as sound land use practice. We are interested in learning about Bavaria’s planning process, where it has succeeded and where its remaining challenges mirror those in Wisconsin.
We hope to learn from each other about the installation and operation of multiple elements of linear infrastructure in a single corridor (such as transmission lines and highways) and in multiple use corridors (such as rail, energy, communications and natural restoration). We will be speaking with officials in both the public and private sectors to learn how they work together.
Wisconsin is engaged in a critical effort to protect, sustain and ultimately to improve the economic well-being of its citizens. The success of this effort hinges on the state’s ability to address the needs of economic enterprises and their employees, while continuing to protect, sustain and enhance the environmental, social and aesthetic quality of its citizens’ lives.
Advocates of Green Tier argue that the magic of the legislation is that it posits the idea that these twin objectives may be complementary rather than competitive. Green Tier, they say, provides hope that it is possible, with the development of new cooperative procedures, to improve performance in both environmental and business endeavors.
We hope to prove those advocates correct and are confident that what we learn in Bavaria will go a long way toward helping provide Wisconsin with the economic development opportunities it seeks while also enhancing the environment. We also hope that someday our friends in Bavaria will be able to visit Wisconsin to see how their ideas have been modified and applied for the benefit of our state.
Mark Williamson is vice president of American Transmission Co. in Waukesha. His comments originally appeared at Wisbusiness.com, a business news partner of Small Business Times.
