Work starts on next phase of major retail center in Kohler
Pine Tree Commercial Realty of Lake Bluff, Ill., has broken ground on Phase III construction for Deer Trace Plaza, a 470,000-square-foot retail center in Kohler. Pine Tree is developing the 14-acre phase to the north of the existing center.
It will have 129,400 square feet of retail space anchored by a 105,000-square-foot Target. Other retailers in Phase III will be Pier 1, 9,000 square feet; Maurices, 4,600 square feet; and Great Clips, 2,600 square feet.Those tenants are expected to open next summer.
Phase I anchor Home Depot, with 120,000 square feet of space, has been open since spring 2001.
Pine Tree Commercial Realty senior vice president Richard Evans called the development pioneering and “bound to change the retail profile of the area,” saying “there is very little commercial development here.” The site is just off the I-43 and Highway 28 intersection, and near The American Club.
Phase II of the project involved a 155,000-square-foot strip center on 14 acres, with the 54,575-square-foot Elder Beerman department store as anchor. Other retailers include T.J. Maxx, 30,362 square feet; Michaels Arts & Crafts, 20,648 square feet; Famous Footwear, 10,400 square feet; Fashion Bug, 8,050 square feet; Dollar Tree, 5,875 square feet; Hallmark, 5,175 square feet; Suncom Cell, 2,530 square feet; Bath & Body Works, 2,500 square feet; and Radio Shack, 2,267 square feet.
The architect was Greenburg Farrow of the Chicago area, with Westra Construction of Waupun as the contractor.
Pine Tree Commercial Realty is at www.pinetreecommercial.com.
Glendale firm gets OK for new office building
Chudnow Druck Lauenstein (CDL), a real estate appraisal company, has received approval from the Glendale Common Council to build a 12,000-square-foot office building at 6373 N. Jean Nicolet Rd.
The new building was needed to accommodate the growth of its residential and commercial appraisal divisions, according to Steve Lauenstein, partner, and will be built directly behind its current building.
According to architect Jermey Bartlett, the two-story building was designed to complement the wooded lot and has a number of amenities for CDL’s employees and building tenants. In addition to CDL’s new offices, Lauenstein said the building will have approximately 6,000 square feet of rentable space.
CDL provides residential real estate appraisals throughout southeastern Wisconsin, the Fox Valley and the Madison areas. CDL also owns Dennis Russell Appraisal Services, which provides commercial appraisals. CDL is owned by Don Chudnow, Bill Druck and Steve Lauenstein.
Berghammer completes two Lakeview projects
Berghammer Construction, Butler, has completed two projects in the Lakeview Corporate Park in Pleasant Prairie. A10,000-square-foot manufacturing, warehouse and office facility was built for CPI Plastics, based in Mississauga, Ontario. The building includes a 45-foot-clear height production area. Architectural design services were provided by Partners In Design Architects, Kenosha.
The second of the two projects was for Yamaha Motor Corp. USA-Midwest Headquarters. The facility known as Lakeview VIII, included a 62,500-square-foot headquarters, warehouse and distribution center. Architectural design services were provided by Eppstein Uhen architects, Milwaukee.
MSI General building Milwaukee church
Blessed Deliverance Baptist Church, Milwaukee, has selected MSI General of Oconomowoc for the design and construction of its new 3,600-square-foot religious facility at 23rd Street and Garfield Avenue. The church was formed in 1985 and has been worshiping at the Samuel Clemens School.
Bukacek completes Carpets Plus Outlet
Bukacek Construction, Racine, has completed a design/build project for Carpets Plus Outlet in Kenosha. The 12,000-square-foot, $800,000 facility includes a showroom, warehouse, offices, and shipping and receiving area. It is at 1241 22nd Ave. Carpets Plus Outlet is owned and operated by Neil and Penny Fuhr.
Towne, Redmond building age-restricted community in Muskego
The Towne Group of Milwaukee and Redmond Residential of Waukesha are building Candlewood Village, a residential community on Moorland Road south of Janseville Road in Muskego.
The project will include 102 single-story ranch homes sold under the Homes by Towne brand name. Homes will be 1,450 square feet to 1,550-square feet. The project will include a community building with a kitchen, conference room and craft room.
Candlewood Village will be an age-restricted community where at least one homeowner must be at least 55 years of age.
The Towne Group is the development arm of Zilber Ltd. while Redmond Residential is part of the Redmond Family of Companies.
Magill Construction starting three projects
Magill Construction Co., Elkhorn, has three new church projects starting this month.
The company is building a 41,000-square-foot worship and educational facility for Alliance Bible Church in Oconomowoc which will include the sanctuary, classrooms, nursery areas, office space and a full-size gymnasium in the lower level.
For Bashford United Methodist Church in Madison, Magill is adding a 3,600-square-foot addition and renovating 15,000 square feet of space.
The United Methodist Church in Marshall project consists of an addition of approximately 3,000 square feet of space with minor remodeling to the existing facility.
Link finishes dealership work in Milwaukee
Link Associates, Waukesha, has completed the construction of an automobile dealership for Don Jacobs’s Mitsubishi. The new facility is at 5757 S. 27th St., Milwaukee. The building is an award-winning design/build project for Link Associates and Connolly Architects.
KPH finishes first phase of hospital upgrade
KPH Construction has completed the first phase of an eight-phase, 30,000-square-foot remodeling project at St. Michael Hospital in Milwaukee.
The project involves renovation of 10 operating room suites on the hospital’s lower level, four of which are now done.
KPH earlier has done general construction and fireproofing at St. Michael.
Sept. 19, 2003 Small Business times, Milwaukee

You can help ensure better meeting results by setting guidelines for participants

By Marcia Gauger, for SBT

Question:
My sales calls involve fact-finding and presenting information to groups and committees of about five or six people. After significant preparation for my last two calls, only half of the participants showed up. It’s not unusual for participants to come and go during my meetings, which is rather disruptive. I find this happening more frequently both with outside and internal customers. Any suggestions?

Answer:
On the first day of school, my daughter brought home a list of class rules that I needed to sign. Although I initially laughed at some of them, on reflection most of the rules seemed applicable to business meeting situations as well.
The notion of having rules for meetings may seem somewhat controlling, yet if positioned correctly could alleviate some of your problems. Most likely, you will have more latitude to suggest rules (let’s call them guidelines) with internal customers. However, positioning expectations with external customers may be beneficial as well.
Here are some suggestions:

Don’t go in cold – Find out who will be in attendance and why they will be there. Ask questions such as, "What is Mary’s role in this project?" "How does the project affect her?" "What input will Mary have in the end decision?"
Adults don’t attend meetings just because they have free time. You need to find out what’s in it for each person individually. Then, tailor your presentation to meet the needs of everyone in the group.

Suggest possible attendees – Don’t rely on your customers to dictate who will be in your meetings. If there is a particular person or role that would help you support your project, suggest that person be invited.

Send "pre-work" – Knowing each attendee’s personal gains and potential risks in attending the meeting, you can use the information to position interest.
Send each participant a pre-meeting agenda with a check sheet of items you would like them to bring, think about or discuss. Make sure you don’t make this a difficult task or you may end up with no attendees.
Be sure to pique interest for each individual by addressing what’s in it for each of them.
For instance, you may make an up-front statement in your communication like, "On Sept. 27 we will be meeting to discuss whether a new computer system would make accounting simpler for your department. To expedite time for all attendees and to make sure we address your individual interests, please be prepared to discuss the following …."

Set expectations before, during and after – Send an agenda to participants with specific timeframes attached including start and finish times.
Consider sending a memo with the agenda stating that everyone’s full participation is critical and request feedback if an attendee is not able to commit to the entire time.
If you know that someone has to leave early, ask that his or her concerns be addressed before they dismiss themselves. Or, ask participants to write one concern or question that they have regarding the meeting on an index card. Use the cards as you progress through the meeting and for follow-up.
At the conclusion, type a follow-up memo with the questions and answers listed. When you start the meeting, reiterate the start and finish times and ask for a commitment from everyone in attendance.

Use a "parking lot" – Attendees can drift during meetings if a participant gets sidetracked on irrelevant issues.
A parking lot is simply a place where you write down topics to be addressed later. This is a terrific way to keep the pace of the meeting going in the direction you need it to.

Meeting norms
If you schedule regular meetings with customers, you may consider establishing norms, which are simply guiding principles. It is best for the group to establish these rather than dictate them. Here are some examples of meeting norms:
–Everyone in attendance must participate by sharing at least one new idea that will benefit the discussion.
— No idea is a dumb one. Throw everything on the table for consideration.
— Be open-minded about information and toward other participants.
— Respect confidentiality; what’s said here stays here.
— Begin session and return from breaks on time.
— Participate and share in group discussions.
— Be prepared to work and have some fun.
— Ask questions and speak freely.
— One person speaks at a time.
— Stripes off at the door.
— No personal criticism.

Marcia Gauger
is the president of Impact Sales, a performance improvement and training company with offices in Wisconsin, Florida and Arkansas. You can contact her at 262-642-9610 or marciag@makinganimpact.com. Her column appears in every other issue of SBT.

Sept. 19, 2003 Small Business Times, Milwaukee

Business owners can manage their Worker’s Compensation costs

The world of Worker’s Compensation insurance buying has taken a 180-degree turn. Underwriters are being much more selective of businesses they will insure. Unprofitable clients are being non-renewed, and the number of businesses in the WC pool has increased.
Since the events of 9/11, business owners have seen significant increases in general liability and property insurance premiums. The pains of the insurance industry overall also impacted the cost of life, auto and homeowners insurance.
And of course, we have all seen the many horror stories about health insurance. Now, the pain of Worker’s Compensation is upon us.
Interesting enough, this is the one line of insurance that business owners have the most control over, but most do not know it.
The involvement of business owners, CEOs and CFOs in the WC insurance buying process is more important now than it has been in the last 15 years.
The question frequently asked, "What am I supposed to do? I hate buying WC. The state, doctors, lawyers and insurance adjusters are out to get me."
Nothing could be further from the truth.
Questions that owners, CEOs and CFOs need to ask include "Are we as good as we can be? How do we know if we are? Do we need to change?"
Change is not easy. Change is uncomfortable. The right change can be healthy and may mean the survival of a business.
Business leaders have to know if their company is managing WC costs as well as they can. The best indicator is your experience modification factor. If your experience mod is 1.00 or higher, you are "average," compared with your peers, at best.
How would you feel if your child came home from school with a report card full of C’s? That is what a mod of 1.00 represents.
The experience modification factor is a measurement calculated by the Wisconsin Work Comp Rating Bureau. It compares each business to the average loss experience of similar businesses in Wisconsin. The base line (average) is 1.00. A mod over 1.00 indicates losses are higher than average.
Every business also has a "lowest possible" mod if it had no losses in the three years used to calculate the factor.
Once owners decide change is needed, then the decision must be made as to what to change. Changing insurance carriers for the sake of change is not the solution.
Some of the questions that need to be asked are:

Local employers bullish on 2004
New MMAC survey indicates strong optimism after sluggish 4th quarter

By Steve Jagler, of SBT

The economic recovery in the second half of this year is slower in coming for Milwaukee-area businesses, but they remain steadfastly optimistic about sales increases in 2004, according to a new survey.
In a poll of 142 local companies, 70% expect sales increases next year, while only 9% foresee declines, according to the Metropolitan Milwaukee Association of Commerce (MMAC) Business Outlook Survey for the fourth quarter.
By industry, non-manufacturers are more likely to forecast 2004 sales gains than manufacturers, said Bret Mayborne, the MMAC’s economic research director.
"There’s a pretty strong positive impression toward the coming calendar year. That’s a reasonably strong number," Mayborne said.
While local businesses are forecasting a rosy 2004, the fourth quarter of this year is not shaping up to be quite as bright as they had hoped.
Fifty percent of the companies surveyed expect sales increases in the fourth quarter compared with the same period a year ago, down from the 65% that predicted sales gains in the third quarter.
"The overall numbers didn’t improve much in the fourth quarter, in general, which I think says to me that things aren’t really going to get better until the next calendar year," Mayborne said.
A sampling of reactions from members of the MMAC’s Council of Small Business Executives echoes the results of the new economic outlook survey.
"The pendulum is on the upswing for us," said Charles Engberg, principal at Engberg Anderson Design Partnership, Milwaukee. "It looks like the fourth quarter is going to be good. The last three quarters were pretty flat. We’re in a relatively good position, and I think we’ve weathered the storm as good as anyone."
Ironically, the federal tax cut enacted by President George W. Bush earlier this year has a negative impact on architectural and construction companies that provide services to public buildings, at least in the short run, Engberg said.
"It may be good for the consumer, but I don’t think it’s been good for businesses and municipalities that depend on federal funding to states and municipalities – like funding for libraries," Engberg said.
Engberg’s firm is beginning the design work for the $40 million historic renovation of Milwaukee’s City Hall.
Michael Herro, chief executive officer and owner of Geo-Synthetics, a Waukesha-based supplier and installer of environmental construction products, also is optimistic about 2004.
"I would agree. At my CEO Roundtable, when we discussed the current and next year, everybody seemed optimistic," Herro said. "Our year this year is definitely stronger than last, and we’re going to expect a bit more of a pickup next year, maybe 6 to 8% growth in sales. I just think the market in general is improving."
Although local companies expect rising sales in 2004, they’ll also face familiar increases in employee health care benefit costs, according to Richard Blomquist, president and CEO of Milwaukee-based Blomquist Benefits.
"The cost of existing benefits is high, and companies are struggling just to maintain those existing benefits," he said.
Blomquist notes the proliferation of cardiac care facilities in southeastern Wisconsin.
"We’re going from four cardiac systems to 12. That doesn’t make a lot of sense to me. That’s overkill. Competition doesn’t occur in the health care market," he said.
Still, Blomquist senses overall optimism from the employers for whom he provides consultation.
Because sales have been more sluggish to rebound than anticipated this year, the revitalization of the state’s employment scenario has been correspondingly stubborn to improve.
Wisconsin’s unemployment rate for July was 5.5%, up from 5.3% in the same month last year, according to the most recent data from the Wisconsin Department of Workforce Development.
In the Milwaukee-Waukesha market, the unemployment rate for July grew to 6.1%, up from 5.8% a year ago. Meanwhile, Racine’s unemployment rate skyrocketed to 7.6%, up from 7.1%.
The national unemployment rate for July was 6.3%, up from 5.9% last July.
Job growth has traditionally lagged behind sales growth, Mayborne said.
"The implication is that the job thing is the last thing to push forward. The job improvement will come later on," Mayborne said.
Although sales growth is creeping forward, the weak employment trends have generated little upward pressure on wages and salaries, Mayborne said. In the fourth quarter, local businesses forecast an average increase in per-employee wages and salaries over the next 12 months of 2%, down slightly from the 2.1% they predicted in both the second and third quarters.
The MMAC’s survey respondents include both large and small companies, with a combined employment of 60,100 people.

Sept. 19, 2003 Small Business Times, Milwaukee

Measurements will show that HR processes, activities help improve a company’s bottom line

By Daniel Schroeder, for SBT

Question:
I appreciated your last article on human capital. Can you offer some additional suggestions for what HR professionals can do to have greater impact and strategic importance?

Answer:
I’m happy to do so. This is clearly a topic about which I feel strongly. For too long, HR professionals have been accorded "second class citizen" standing in many organizations. Is that the fault of the HR professionals or is it an accurate conclusion based upon their strategic irrelevance?
You can answer that question based upon your frame of reference. But let me take this opportunity to point out that like the comedian Rodney Dangerfield, HR professionals "get no respect." With my tongue planted firmly in cheek, let me offer my own version of David Letterman’s "Top Ten" list as to why this is the case:

Top 10 reasons why HR professionals get no respect:
10. They are constantly handing out smiley stickers.
9. They are the driving force behind office birthday parties – complete with bad hats and ice cream cakes.
8. They decorate their offices with motivational posters.
7. They are aggressive advocates of using "I" statements.
6. They are the overly diligent in keeping track of vacation days used.
5. They are the masterminds behind the office luau – complete with complementary grass skirts and coconut bras.
4. They are the authors of the company policy manual that describes in detail how to punch in on time, but offer no assistance in dealing with incorrect payroll checks.
3. They are frequently blood relatives of the owners.
2. They probably know each employee’s IQ.
1. They drain the bottom line — they don’t drive it!

It is this last point that I would like to address in this article. It is worth noting that the "bottom line" for most organizations is some form of financial performance (i.e., "Did we make money this year or not?"). Clearly, HR is not seen as much of a driver of financial performance for many organizations.
Yet, it does not have to be this way. At the heart of things is the extent to which HR professionals are measurement focused. Ultimately, the bottom line is a reflection of the kinds of measurement practices in which the organization engages. HR professionals need to take note of this and align their measurement practices with what the organization is measuring.
Measure it!
As performance improvement expert Geary Rummler has observed, "Measurement is the pivotal performance management and improvement tool. As such, it deserves special treatment." By special treatment, Rummler means special attention-namely that anyone involved in the management of human capital (i.e., employees) better be in the measurement business, too.
As Rummler points out, without measurement we cannot:
— Communicate performance expectations
— Know what is going on inside the organization
— Identify performance gaps
— Provide feedback comparing observed performance to a defined standard
— Recognize performance
— Support decisions regarding resource allocation, projections, and schedules

I would go so far as to say that without measurement, HR professionals cannot demonstrate impact.
And without the ability to demonstrate impact, HR professionals cannot justify their existence.
Under these circumstances, can anyone be surprised that HR professionals get no respect?
The point is that to be part of the organizational "success equation," HR professionals have to provide data that are used in computing that equation. And historically, HR professionals have not done a very good job along those lines. Here’s an example: the Vest Pocket Guide to Business Ratios offers more than 300 pages of material. The only times HR is listed is when it appears as a cost! Need some evidence that HR is a bottom line drain? Just pick up a copy of this widely used resource.
So, what can HR professionals do to turn this trend around?
Stop focusing
on transactions
My advice is: Stop measuring transactions and start measuring activities and processes that relate to the organization’s competitive performance.
As Jac Fitz-Enz, a noted HR strategist has observed, HR professionals must craft a new vision for themselves. To do so, he suggests that four ideas are central:
1. HR exists in an organization because it adds tangible value by providing necessary services at a competitive cost.
2. HR’s charter is to enhance the productivity and effectiveness of the organization from the people-the human capital.
3. HR should drive the organization’s management with regard to people issues.
4. HR is a professional function staffed by professionals who are dedicated to the development of people in ways that are satisfying to the individual and beneficial to the organization.

Clearly, this is a strategic vision.
This is a vision that, if met, links and aligns HR professionals with the important outcomes with which the organization concerns itself (e.g., Return on Investment, Customer Satisfaction, Process/Operations Efficiencies, etc.).
In the final analysis, if you, as an HR professional, want to encourage individual and organizational improvement, then you must move beyond a focus on tactical activities to an emphasis on longer-term, strategic activities.
Use measurement to help your organization move beyond its old approach.
Use measurement to synthesize individual, work area, and organizational objectives.
Use measurement to move "outside the box," and toward adaptation and evolution.

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.

Sept. 19, 2003 Small Business Times, Milwaukee

Usinger’s starts work on new plant

By David Niles, of SBT

Work is under way for construction of a 50,000-square-foot sausage-making plant for Usinger’s Famous Sausage just south of downtown Milwaukee.
Fred Usinger Co. is having the building erected in two phases adjacent to its distribution center at 303 E. Florida St. in Milwaukee’s Florida Yards business park.
The project, on six acres of land, will essentially fill the business park, although a small parcel remains, said Alderman Angel Sanchez, who represents the area.
Redevelopment of the site, which originally was swampland and later served as a railroad yard for many years, was prompted by the Usingers’ desires to expand beyond their downtown site, but stay within the city.
The company built its 22,000-square-foot distribution center in the business park in 1993.
City officials described the creation of the business park as "challenging" due to soil conditions and the land’s use as a railroad yard, but noted the work helped the Usinger family keep their operations within the city limits and eventually offer space for another nearby business , V. Marchese Co., to relocate.
Just behind the parcel that will hold the new Usinger’s building, work is being completed on the V. Marchese produce company’s new 42,000-square-foot warehouse, office and distribution facility.
The Usinger family purchased the six acres for their new building from the city Redevelopment Authority.
The Florida Yards and its surrounding neighborhoods have seen $300 million in development and redevelopment in recent years, said Sanchez. The Usinger investment will add to that – and will add to the flavor of the neighborhood, he said, quipping that "it’s OK to wrap a bratwust in a tortilla," referring to the area’s Latino influence.
Phase I of the new Usinger plant, about 35,000 square feet of space, will be completed next June at an approximate cost of $9 million.
Environmental Structures Inc. of Hartland is the design/build contractor for the project.
Usinger’s retail store, offices and some manufacturing will remain at the company’s present facility – a six-story building at 1030 N. Old World Third St., although all production will eventually be moved to the Florida Yards site, said Deb Usinger, director of retail operations for the sausage maker.
"While I am bittersweet about moving production from Old World Third street, we have a responsibility to our great-grandfather’s dream for this company," she said.
The new site will alleviate the challenges that truck drivers now face maneuvering in and out of the Old World Third Street site. But, more so, it will offer increased operating efficiencies and room for business expansion, said Fritz Usinger, company president.
"This building will give us the latest in sanitary control, a smoother workflow and greater efficiency in the overall operation," he said. "And it will have the space to add new equipment as the business grows."
And it will allow the company to renew its commitment to the city, he said. "We have been a part of the city of Milwaukee since our founding 123 years ago," Usinger said. "The Florida Street site allows us to continue this tradition and take advantage of existing services such as water, gas, electric, sewer and the transit system for our employees who wish to use it. We feel it is important to keep jobs in the city and make use of an existing manufacturing site in order to help preserve Wisconsin’s green spaces."
Mayor John Norquist praised the family’s commitment to the city — and to the quality of its products. "Usinger’s may be the only American company effectively competing with European sausage makers," the mayor said at a groundbreaking ceremony for the new plant.

Sept. 19, 2003 Small Business Times, Milwaukee

Proactive approach
Seven steps for medicating your health insurance cost headache

By Wendell Willis, for SBT

Since 1998, southeastern Wisconsin has witnessed high double-digit increases for health insurance premiums each year. You’ve heard it all before as to why the system is broke.
Hospitals continue to build, and physicians are charging too much. The pharmaceutical companies and insurance companies make too much profit. Some experts say the government needs to step in. Enough already!
With no true relief in sight, while politicians argue and healthcare players continually shift the blame, your business is struggling with how to provide a benefits package to employees that is competitive, comprehensive and within your budget.
Many employers are asking, "What can I do?"
Unfortunately, there is no one solution, but there are no absolutes either. In today’s environment, an employer must be creative and willing to make tough decisions. That may also require more employee involvement. Recognizing the current landscape, the following are seven steps your company can implement to help control benefits costs.

Step 1: Establish goals – When establishing the goals of your plan, consider the following questions:
Where do you want your benefits program to be in one, three, and five years?
What is your goal in providing employee benefits?
What benefits are important to you and your organization?
What do you perceive as the value in providing employee benefits?
What benefits are important to your employees, and of those benefits, which carry the highest priority?

Step 2: Assess your current plan – The key is evaluating your plan when you are not in the renewal process. Have you looked into the total cost of risk for providing employee benefits – not just premium dollars – morale issues, turnover, mis-hires, disability or illness?
What percentage of your company’s revenue does your benefits package comprise?
How is your current plan being utilized, is it over- or under-utilized?
How do employees view the benefits, as a right or as a privilege?
Do employees know how much you’re spending on benefits?
Do your current benefits provide a value to the employees?
Your current plan should be evaluated, and employees should be surveyed to find out what they think about the plan and determine if they understand how the plan works.
Another strategy you may consider is creating an employee committee where their opinions can be voiced. Although management makes the final decisions, employees can express what they value. You may find out you’re paying for bells and whistles that are not necessary.

Step 3: Get informed – You are in your business because you know about your field, not health insurance. You probably had no intention of spending as much time and energy trying to understand the nuances of benefits.
In today’s environment, you have to keep up with marketplace changes that occur. Hopefully your broker, the Internet, or other business owners are assisting you in this process.
Obtain as much information as possible about what’s happening in the industry from a variety of sources. This will allow you to be creative in providing solutions.
Once you have enough ideas regarding varying benefit options, you can make informed decisions and begin to problem solve.

Step 4: Implement a plan and consider benefit plan adjustments – Once you’ve gathered all the information, assessed your current plan and set clear goals, it’s time to take the appropriate steps immediately. The longer you wait, the more your bottom line will be affected.
Identify insurance partners who are aligned with your goals and priorities. Once you’ve selected the right broker, together you will identify the carriers in the marketplace that can meet your needs. That ensures all three partners are focused on the same goals and are working from the same page.

Step 5: Education, education, and education – Now that you’ve taken the time to become informed, it’s time to get your employees up to speed. Companies spend a fortune on benefit costs, and it’s time to invest in employee education.
Whether it is spending time or money, this is crucial in making the plan successful. Educate employees on the state of the industry, the cost of providing benefits and how the decision was made regarding the benefits being offered.
Then educate your employees on the benefits themselves and how they can be best utilized.

Step 6: Strengthen your relationships – Work on developing a solid relationship with your insurance partners, which includes your agency/broker, as well as the insurance company and its representatives.
Your agent should have a solid relationship with the insurance carriers and the representatives working on your account. The more carriers know about your business, the more they are willing to work with you.

Step 7: Review and reevaluate – You want to avoid taking a reactionary approach, which results in temporary solutions. You’ve put a benefits plan in place, and no matter what, it’s costing you money. Take the time every three to four months to review the program you’ve implemented. Reevaluate your plan and make the appropriate changes when necessary.

Through this process, you can initiate a proactive approach that provides long-term strategic solutions that integrate risk management and business planning.
By evaluating your benefits program only at renewal, you’re relying on a reactionary approach that will yield short-term solutions, which end up costing your company more in the long-term.

Wendell Willis is a benefits specialist for HNI Risk Services, a full-service insurance agency in New Berlin, providing insurance, risk management and loss control services to businesses (www.hni.com).

Sept. 19, 2003 Small Business Times, Milwaukee

New Berlin employers launch health insurance pool

More than 600 employers in the city of New Berlin plan to pool their resources in a buying consortium that will negotiate for lower employee health insurance costs.
The New Berlin HR Committee (NBHRC), which was formed six months ago, will create the consortium, according to the organization’s president, Jessica Ollenburg, who also is the president of Human Resource Services, Greenfield.
The NBHRC kicked off its New Berlin revitalization programs during a breakfast event Sept. 9.
The organization was designed by Ollenburg’s firm and is reacting to the interests expressed by the New Berlin Industrial Association (NBIA), which represents about 600 New Berlin businesses, Ollenburg said.
A primary mission of the NBHRC will be to establish the buying consortium to generate better leverage in negotiations for health care insurance, she said.
"That’s one of the areas of greater demand. It’s definitely a primary factor," Ollenburg said.
The industrial association has grown and is now representing businesses beyond the traditional manufacturing companies in its membership, she said.
"The industrial parks in New Berlin have been attracting other businesses, in addition to manufacturing," she said.
Human Resource Services has provided significant resources, contributing the originating strategic plan, mission statement, initial research and committee invitations for the New Berlin organization, she said.
The startup committee for the group includes Ken Matheson, representing the NBIA, and former New Berlin Mayor Tim Tully of Personnel Dynamics.
Focus group participants and/or new committee members include representatives from Schroeder Cos., Tekra Corp., Velvac, New Berlin Plastics, Sax Arts & Crafts, LindenGrove Health Care Centers, Payne & Dolan, Sells Printing, Midland Plastics, Christopher Morgan LLC, OSI Outsourcing, Security Insurance & Financial and the New Berlin Chamber of Commerce.
The NBHRC offers seven startup programs, including an HRM buying consortium, a shared training initiative, an assessment center and a dedicated talent pool.
The programs are designed in both anticipation of and reaction to economic changes, anticipated growth and preservation of corporate resources, Ollenburg said.

Sept. 19, 2003 Small Business Times, Milwaukee

Six steps commercial insurance buyers can take to contain costs

By Tom Baer, for SBT

Since the fourth quarter of 1999, insurance prices have been undergoing a market correction that continues today. As a result, commercial insurance rates keep rising, terms keep tightening and insurance companies keep asking for more and more information about your company’s operations.
A few of the reasons why insurance companies continue to alter the way they do business and have returned to stricter underwriting basics include:
" Insolvencies and consolidation among insurance carriers has reduced competition. There are fewer companies that are able to, or seek to insure commercial accounts.
" Investment income can no longer be counted on to offset underwriting losses.
" Double-digit inflation is impacting claims-related expenses such as medical and repair costs.
" Claim amounts continue to increase due in part to large court settlements.

While these factors propel insurance premiums upward, Wisconsin business owners can implement tactics to combat unnecessary increases. Here are six things commercial insurance buyers should focus on to contain insurance costs.

1. Have a detailed, five-year claim history available for your agent or broker. Understand what caused your losses and be able explain what your company has done to reduce or eliminate similar losses in the future.
Providing a clear financial picture of your company for your agent is also beneficial. "Financials unavailable" can cost you.

2. Improve safety programs. Work with risk managers to reduce loss expenses and document tangible improvements.
To have a positive impact on insurance premiums, safety programs need to be more than just "lip service."

3. Relationships count. Find an agent you trust and feel comfortable with and then work closer than ever with that person. Remember that you’re on the same side.

4. Work with your agent to evaluate the potential benefits and pitfalls of increasing deductibles, purchasing excess coverage and self-insuring some areas of risk. You may find that you’re able to eliminate some coverages all together.

5. Understand that any change in your business structure can impact your insurance needs and costs.
Changes in facilities, workforce sizes, equipment, inventory buildups and other factors need to be constantly monitored and relayed to your insurance carrier. Have a system in place to make sure this happens.

6. Get certificates of insurance and hold-harmless agreements from vendors.

Keep in mind that anything you can do to protect your property can have an impact on insurance premiums. For example, sprinkler systems can protect your inventory and lower your rates. Proper security and supervision of your property can have a positive impact, as well.
If possible, avoid sharing a facility with another tenant. And make sure you have adequate separation from potential exposures such as storage tanks containing flammable/explosive materials.
Begin collecting data and evaluating options as early as possible – at least 120 days before your existing policy expires. That will give your agent time to call in professional risk mangers to help evaluate your risk management position and obtain competitive quotes.

Tom Baer is vice president of AIS Group, an independent insurance agency in Menomonee Falls.

Sept. 19, 2003 Small Business Times, Milwaukee

Wisconsin Athletic Club ponders vacant Kohl’s stores

By Steve Jagler, of SBT

Wisconsin Athletic Club Inc. is on the verge of expanding its waistline in the land of cheese, brats and beer. The West Allis-based company plans to double the size of its Wauwatosa health and fitness club and hopes to build several more clubs in southeastern Wisconsin over the next three years.
Ray O’Connor, chief executive officer of the firm, said he has contacted a real estate broker who is inquiring on his behalf about the availability of several vacant former Kohl’s Food Stores in greater Milwaukee.
In particular, O’Connor wants to know if any of the larger stores of 40,000 square feet or more could be renovated into new locations for the Wisconsin Athletic Club.
"We have expressed interest. We have identified the sites we would be most interested in. We have looked at them," O’Connor said. "We’ve been all over the area, and we’re actively looking for sites."
With one eye on the horizon for new sites, O’Connor and his partners, Keith Nygren and Ted Torcivia, also are focusing on the Wauwatosa expansion at 8700 W. Watertown Plank Rd.
Work will begin on the $4 million expansion to the building in October, and they hope the work will be completed by the first quarter of 2004.
The building is located on the Milwaukee County Grounds and is owned by a partnership that includes Wisconsin Athletic Club, Froedtert Memorial Lutheran Hospital and two private investors, whom O’Connor declined to name.
The complex will be expanded by 42,000 square feet. Wisconsin Athletic Club’s portion of the building will double from its current 25,000 square feet to 50,000.
Froedtert also will expand its Sports Medicine Clinic at the site.
The project will include knocking out part of the structure’s north wall to accommodate the expansion, which will include a new gymnasium, several group exercise rooms and another swimming pool.
The addition has been designed by J.P. Storrs Inc. of West Bend. The general contractor for the project has not yet been selected.
The growth of the Wauwatosa site and Wisconsin Athletic Club’s plans to open new locations are being fueled by the rising popularity of health and fitness programs throughout the region, O’Connor said
"I think clearly the industry has had an up-tick in the last three years," O’Connor said. "People are understanding that every day, you have to do something (aerobic). The bottom line is exercise is good for you, whether it’s chasing your grandchildren around or running in a marathon. The need for exercise is intergenerational."
Of course, the fact that about 59% of the state’s population is either overweight or obese and in need of some type of physical fitness routine doesn’t hurt Wisconsin Athletic Club’s bottom line.
The standard news cliché is that New Year’s Eve partygoers make resolutions and join health clubs the next day, only to slowly drift away from the routines weeks later.
"Our biggest sales day used to be New Year’s Day. That’s no longer true," Nygren said. "Now, people are coming to us much more evenly distributed throughout the year. We help them sustain it. What we tell them is, ‘You didn’t get here over night, and you’re not going to change overnight. The key is sustaining it in a lifestyle change."
Those "lose-10-pounds-in-a-week" products are scams in which consumers quickly regain the weight because their lifestyles have not changed, O’Connor said.
Wisconsin Athletic Club employs a full-time registered dietician who helps club members eat more healthy foods to complement their exercise routines, he said.
Group exercise activities, such as spinning and yoga, are growing in popularity and will receive increased emphasis in the expanded Wauwatosa club and in the new locations the company will open, O’Connor said.
"People come here because people are social," O’Connor said.
The company, which began in 1998 with two clubs and 3,600 members, has grown to five clubs with 11,000 members. Those totals will double with the firm’s new locations to be built over the next few years.
Wisconsin Athletic Club also is tapping into a sub-market by providing custom fitness and health facilities in corporate buildings. The company recently opened a fitness center at Stark Investments’ plush headquarters in St. Francis.
"We provided the design work for the fitness facility they have and ordered all the equipment, and we have personal trainers there when they need them," Nygren said. "They own the equipment. It’s kind of a new concept."
Stark interviewed three fitness club providers before selecting Wisconsin Athletic Club to set up its operation in the headquarters building overlooking Lake Michigan.
"We have three camps of users. There’s the early morning crowd, the lunchtime crowd and the after-work crowd. It’s wonderful," said Linda Gorens-Levey, chief operating officer of Stark. "It’s a great benefit to offer to employees. Being in the money market business, it’s nice to have such a great stress reliever."
Wisconsin Athletic Club is in discussions with the owners of other office buildings in southeastern Wisconsin to provide on-site fitness centers for employees, Nygren said.
In addition, Wisconsin Athletic Club is partnering with more than 100 corporate clients who see the value of a fit workforce and agree to defray the membership costs for their employees.
"Any business can put up four walls, but we’re providing a product that people seem to want," O’Connor said.

Sept. 19, 2003 Small Business Times, Milwaukee

SBA loans

The U.S. Small Business Administration approved the following loan guarantees during August:

Abacus Architects, 1125 Michigan Ave., Sheboygan 53081, $100,000 and $30,0000
Community Bank & Trust;
Action International, 1848 Mountain Ave., Wauwatosa 53213, $50,000, Marine Bank;
Advanced Auto Clinic, 710 Ann St., Delavan 53115, $54,000, Community Bank Delavan;
Advanced Panels & Controls, 300 Travis Ln., Waukesha 53189, $50,000, Waukesha State Bank;
Alpha Investment Consulting, 225 E. Mason St., Milwaukee 53202, $80,000,
M&I Marshall & Ilsley Bank;
Alphagraphics, 17000 W. Bluemound Rd., Brookfield 53005, $345,000, CE Capitol Small Business Finance Corp.;
Americinn, 1708 Eastern Ave., Plymouth 53073, $1.25 million, CIT Small Business Lending Corp.;
Apples of Eden, 13320 Watertown Plank Rd., Elm Grove 53122, $404,000, Wells Fargo Bank;
Carpets Plus Outlet, 1241 22nd Ave., Kenosha 53140, $366,0000, Racine County Business Development Corp.;
Chemstation of Wisconsin, 3841 W. Wisconsin Ave., Milwaukee 53208, $270,790,
St. Francis Capital Corp.;
Continental/Franzen Litho, 5300 Hwy. 42 North, Sheboygan 53083, $250,000 and $750,000, Associated Bank;
C And S Construction, W2983 Hwy. O, Sheboygan 53085, $150,000, Community Bank & Trust;
Decks Plus, N7907 Bowers Rd., Elkhorn 53121, $50,000, First Citizens State Bank of Whitewater;
DMJ Schmidt LTD, 1800 Silvernail Rd., Pewaukee 53072, $1 million; Wisconsin Business Development Finance Corp.;
Durski Chiropractic Health Center, 14999 W. Beloit Rd., New Berlin 53151, $85,723, Anchor Bank;
Efficient Equipment of North America, N5580 Luey Ln., Plymouth 53073, $167,000,
Community Bank & Trust;
Even Services, 180 Valley Rd., Sheboygan Falls 53085, $25,000 and $50,000, Associated Bank;
Express Personnel, 4901 Washington Ave., Racine 53406, $84,000, Community Bank of Grafton;
Fazio Automotive, 2037 N. Farwell Ave., Milwaukee 53202, $10,000 and $76,200, US Bank;
Foot & Ankle Healthcare, 6707 39th Ave., Kenosha 53142, $181,000, $292,000 and $25,000, M&I Marshall & Ilsley Bank;
Fox’s Pizza Den, 1366 E. Summer St., Hartford 53027, $118,000, First Bank Financial Centre;
Future Nails, 7485 W. Layton Ave., Greenfield 53220, $15,000, US Bank;
Gibbsville Implement, W4927 Clearview Rd., Waldo 53070, $669,000, Wisconsin Business Development Finance Corp.;
Grant Accounting Services CPA, 3020 W. Vliet St., Milwaukee 53208, $15,000, Wells Fargo Bank;
Granville Woods Joint Venture, 8170 N. Granville Woods Rd., Milwaukee 53223, $944,000, Milwaukee Economic Development Corp.;
Hair Decisions, 12438 W. National Ave., New Berlin 53151, $150,000, Landmark Credit Union;
Hydraulic Fittings, 1210 Washington Ave., Racine 53403, $100,000, Wells Fargo Bank;
Information Technology Professionals, 5002 Mesa Ct., Waterford 53185, $50,000,
M&I Marshall & Ilsley Bank;
International Industries, 5150 N. 32nd St., Milwaukee 53209, $146,300, Bank One;
JA MAR Electric, 801 Hickory St., Pewaukee 53072, $345,000, Wisconsin Business Development
Finance Corp.;
JB’s Furniture, 1340 N. 6th St., Milwaukee 53212, $100,000, M&I Marshall & Ilsley Bank;
J&D Bros. Inc. and Jude & Sons, 8920 Durand Ave., Sturtevant 53711, $1.52 million,
Community Bank & Trust;
Jeninga Bros. Metal Forming, 1061 Proctor Dr., Elkhorn 53121, $685,000, Wisconsin Business Development Finance Corp.;
Jet Wash, 223 S. 7th St., Delavan 53115, $242,000, Wisconsin Business Development
Finance Corp.;
J&Y International Enterprises, N92 W17420 Appleton Ave., Menomonee Falls 53051,
$1.1 million, Old Kent Bank;
Kirby Internet Consulting Services, 1047 Timberline Ct., Oconomowoc 53066, $63,000, First Bank Financial Centre;
Lotzer & Co., 2611 N. Stowell Ave., Milwaukee 53211, $25,000, Capital One;
May’s Trucking & Snow Removal, 6881 N. Burbank Ave., Milwaukee 53224, $35,000, Capital One;
Northeast Wisconsin Spine Center, 1720 N. 8th St., Sheboygan 53081, $244,000, Investors
Community Bank;
Not Just Soccer, 1226 N. 8th St., Sheboygan 53061, $127,000, Community Bank & Trust;
OMV-USA, 501 Koopman Ln., Elkhorn 53121, $813,000, Wisconsin Business Development
Finance Corp.;
Once Upon A Time, 5620 Broad St., Greendale 53129, $60,000, Layton State Bank;
On-Top Roofing & Chimney, W243 S7175 Cameron Dr., Waukesha 53189, $195,000 and $5,0000, Community Bank & Trust;
Paper Box & Specialty Co., 1505 Sibley Ct., Sheboygan 53081, $375,000, Associated Bank;
Miguel Angel Perez, 2206 W. National Ave., Milwaukee 53204, $24,300, US Bank;
Pizza de Roma Burlington, 180 E. Chestnut St., Burlington 53105, $145,000,
M&I Marshall & Ilsley Bank;
PK Leasing, 15340 Bluemound Rd., Elm Grove 53122, $1,072,000, Wisconsin Business Development Finance Corp.;
Precision Metals and Hardware, 5265 N. 12th St., Milwaukee 53225, $250,000 and $250,000, M&I Marshall & Ilsley Bank;
Quality Landscaping & Lawn Maintenance, 707 Beech St., Grafton 53024, $150,000, Port Washington State Bank;
Quizno’s Subs, 4920 S. 74th St., Milwaukee 53220, $150,000, Bank One;
Rowen Sales, 1050 Carey St., Lake Geneva 53147, $250,000, Community Bank & Trust;
Saffron Indian Bistro, 17395 W. Bluemound Rd., Brookfield 53045, $140,000, Waukesha State Bank;
The Skybox Sports Pub & Grill, 1132 S. 8th St., Sheboygan 53081, $150,000and $550,000, Community Bank & Trust;
The Sleep Shoppe, 1912 N. 7th St., Sheboygan 52081, $20,000, Community Bank & Trust;
Subway, 835 W. Mitchell St., Milwaukee 53204, $136,500, M&I Marshall & Ilsley Bank;
Subway, 2604 W. Capitol Dr., Milwaukee 53206, $100,000, State Financial Bank;
Sunset Portable Restrooms, 3447 Hubertus 53033, $87,500, M&I Marshall & Ilsley Bank;
Super 8 Motel-Germantown, N96 W17490 County Line Rd., Germantown 53022, $1,065,000, Wisconsin Business Development Finance Corp.;
TMI Consulting, 1915 N. Dr. Martin Luther King Jr. Dr., Milwaukee 53212, $40,000 and $100,000, M&I Marshall & Ilsley Bank;
Tripod, 2250 S. Woodward St., Milwaukee 53207, $35,000, St. Francis Bank;
The UPS Store, 6508 S. 27th St., Oak Creek 53154, $150,000, Bank One;
Vac Hut Plus, 5031 W. Howard Ave., Milwaukee 53220, $15,000, Bank Mutual;
Venture Solutions, 1280 Fries Lake Rd., Hubertus 53033, $80,000, M&I Marshall & Ilsley Bank;
Walworth Landing, 680 E. Kenosha St., Walworth 53191, $614,000, Wisconsin Business Development Finance Corp.;
Whitewater City Market, W8924 Townline Rd., Whitewater 53190, $126,200, First Citizens State Bank of Whitewater;
White Hot Design, 621 W. Main St., Lake Geneva 53147, $10,000, US Bank;
Wonderful World, 1022 Michigan Ave., Sheboygan 53081, $90,000, Associated Bank;
Lang Xiong and Ong Xiong EPC, 9536 W. Greenfield Ave., West Allis 53214, $218,400, Comerica Bank;
Yoder’s Amish Furniture & Gifts, N588 Howard Rd., Whitewater 53190, $150,000 and $100,000, First Citizens State Bank of Whitewater;
Zuhar International, 3950 N. Holton Ave., Milwaukee 53212, $725,000, Community Bank & Trust.

Sept. 19, 2003 Small Business Times, Milwaukee

Operations, finance and marketing all have a role in business planning process

by Robert Grede, for SBT

Whether your company is large or small, a good strategic plan is essential. Yet planning is often met with resistance within a company. This opposition is based upon:
1. The sense that there are "more important" things to do.
2. The perception that planning is simply "busy work" and not useful.
3. A reluctance to commit to goals in a rapidly changing environment.

As the owner, you must emphasize the importance of planning to your employees. If the boss isn’t sold on planning, nobody else will be either.
Here are some of the benefits of planning:
— Encourages thinking ahead in a systematic manner
— Sharpens the company’s focus
— Prepares for unforeseen developments
— Leads to better coordination of company efforts
— Helps develop performance standards

How do you start? Every business has three fundamental parts: operations, finance, and marketing. And each has its own part in the planning process.
Ask most entrepreneurs and they’ll tell you that operations is the most important. "Build a better mousetrap and the world will beat a path to your door!" "Without a good product, nothing else matters."
They have a point. No business will be successful unless it satisfies its customers’ needs and wants. Whether a product or a service, you must deliver on your promise.
But talk to your accountant, banker and your company bookkeeper, and they will tell you that money matters most. "It’s the blood that feeds the organization." "Cash flow is everything."
They, too, have a point. Over time, without sufficient income to pay expenses, your company is bankrupt.
Marketing always seems to get shuffled into third place. And that’s wrong. Marketing is the most important.
I admit I’m prejudice. But hear me out.
Without customers, you have no business. It doesn’t matter how good your product is if no one knows about it. It doesn’t matter how well financed your firm is if you have no customers to create cash flow.
Business begins with marketing. When developing a strategic plan, it is the first part that needs to be written.

A good strategic plan begins with sound estimates of your company’s sales objectives. These estimates are based upon a variety of factors:
— Last year’s sales
— An estimate of your promotion campaign’s effectiveness
— New products you will be introducing
— An analysis of your competition
— The economy

Once established, these sales estimates are shared with operations and finance to help them develop their plans.
Too often, companies calculate their manufacturing capacity and tell the sales department how much needs to be sold. This is particularly true in capital-intensive businesses where capacity utilization is critical (e.g. airlines, foundries, printers). This method often results in deep price discounts and declining (or negative) profit margins when sales quotas are not met.
Had they started by estimating their sales, they may have avoided those problems. Knowing in advance that sales may not utilize capacity can help companies plan cost-cutting methods in order to assure profitability.
Begin planning early. It’s not too soon to start developing your 2004 strategic plan. Start by estimating sales for the coming year, and then begin developing the operations and financial plans based upon those assumptions.

Robert Grede teaches Entrepreneurial Management at Marquette University. He develops business plans for companies in a wide variety of industries. www.thegredecompany.com.

Sept. 19, 2003 Small Business Times, Milwaukee