Liability insurance hikes await We Energies
New costs would be passed along to customers

By Steve Jagler, of SBT

Wisconsin Energy Corp. expects to pay more for liability insurance premiums in 2004, and those costs ultimately would be passed along to the business and residential ratepayers of the Milwaukee-based company.
Responding to a request from Small Business Times, however, the company declined to disclose how much it pays for liability insurance or to project how much its premiums will increase next year.
"We are not able to disclose to you the amount of our liability insurance or identify our insurance carriers," said Wisconsin Energy spokeswoman Margaret Stanfield.
The company, which is publicly held and operates a public utility (We Energies), would eventually pass its costs for rising liability insurance along as a cost of doing business to its customers, rather than its shareholders, Stanfield said.
"It is a cost of providing service to our customers, and it is something that would fall in the category of the costs that is covered by the ratepayers," she said.
Wisconsin Energy’s current long-term contracts with liability insurance companies are on the verge of expiring, and the company expects those premiums to increase in the coming year, simply because corporate liability insurance in general is increasing, she said.
"We have had long-term agreements with our insurance providers. We’re coming out of that period, and we will see those increases in the near future," Stanfield said.
In the aftermath of the electricity blackout that left the East Coast and much of the Midwest dark on Aug. 14, public utilities’ liability insurance premiums are likely to increase across the board in 2004, according to Ken Silverstein, director and energy industry analyst for UtiliPoint International Inc., an Albuquerque, N.M.-based consulting firm.
The uncertainties generated by the blackout, combined with the previous stock market nosedive, corporate scandals, major tort awards and threats of terrorism, are creating a market in which insurance companies are becoming less eager to provide coverage to utilities, Silverstein said.
"The threat of lawsuits and the corresponding coverage to protect against them is hitting the corporate sector hard, including utilities," Silverstein wrote in an Aug. 28 column headlined, "Sharks Circle Around Utilities."
"With jury awards jumping and underwriters becoming increasingly nervous about taking risks, the cost of liability insurance has skyrocketed. And conditions won’t change anytime soon," Silverstein said.
Those uncertainties will have impact on public utility companies such as Wisconsin Energy, Silverstein said, even though the firm’s Wisconsin region did not lose power in the blackout.
Liability insurance premiums for utilities have increased 50% to 500% over the past three years, Silverstein said.
"And it’s happening even to utilities that have had good claims experience," he said.
Of course, the business of burning coal and natural gas and generating nuclear energy is not without risks.
In July 1999, a jury issued a verdict ordering Wisconsin Energy to pay $100 million in punitive damages and $4.5 million in compensatory damages to Giddings & Lewis Inc. and the City of West Allis after cyanide was discovered at two sites in West Allis.
Wisconsin Energy officials later acknowledged in court they had grossly understated the amount of liability insurance the company held.
The Wisconsin Court of Appeals overturned the jury’s $100 million punitive award and remanded the claim back to court in September 2001. The plaintiff’s claims eventually were settled last year, when Wisconsin Energy agreed to pay $17.3 million.
According to Wisconsin Energy’s annual report this year, the company filed a lawsuit against its unnamed insurance carriers to recover its costs for the West Allis case.
This year, Wisconsin Energy agreed in April to spend up to $600 million in power plant improvements and make other concessions to settle claims by the US Environmental Protection Agency that the firm had violated federal air pollution laws.
As part of the settlement, Wisconsin Energy also agreed to pay $3.2 million in civil penalties and spend at least $20 million to finance a demonstration project to cut mercury emissions from a coal-fired power plant in Michigan.
In July, Wisconsin Energy filed a request to the Public Service Commission of Wisconsin to increase the utility’s electric rates by $63.5 million (3.5%) and its natural gas rates by $26.2 million (3.9%).
In the filing, Wisconsin Energy said the increases are needed "to recover costs that the company will incur in order to continue providing reliable, safe and environmentally sensitive service to its customers, now and in the future."
Stanfield said the projected liability insurance cost increases were not a factor in the firm’s decision to file for the rate increases.

Sept. 19, 2003 Small Business Times, Milwaukee

A business that truly reflects its customer base reaches the third level of employment diversity

By KeleMarie Lyons, for SBT

We talk and hear a lot about diversity. However, have you ever wondered what it would look like to be a truly diverse business community — one where all cultures work together regardless of race or gender?
While the thought might be overwhelming, it behooves us to take a moment and address what a truly diverse business would look like. Here’s a checklist to get you started on the concept. Does your business or organization:
— Acknowledge diversity at all levels of the business?
— Openly embrace employees of different backgrounds?
— Train employees on intercultural communication?
— Accommodate the needs of all employees’ cultural or religious holidays?
— Seek to eliminate cultural barriers including stereotypes and discrimination?
— Deploy its diversity as an "added value" or as an asset in dealing with customers in the "global economy"?
— Target customers of different ethnicity, backgrounds?
— Recruit suppliers of diverse backgrounds?

At the very fundamental level, we all have God-given attributes, including gender and race. Those attributes naturally make us diverse and give us unique perspectives. History has played a big role in forming the expectations of women and men, as well those of African-Americans, Latinos, Asians and Caucasians, (etc.).
Today, gender and race "expectations" are constantly being tested. Abiding by the government’s Equal Employment Opportunity/Affirmative Action regulations is a must. However, a truly diverse company can rise above those EEO/AA regulations as well as the historical "expectations" to provide opportunities for all individuals, regardless of race or gender.
The second level of diversity entails a commitment by top leadership. It goes beyond race and gender and requires an employer to embrace differences among an individual’s choice of religion, lifestyle, socioeconomic background, learning style, physical appearance and occupation. It is at this level that a company demonstrates its commitment to filling employment positions with the best possible candidate — period.
A business that truly reflects its customer base has taken diversity to the third level. The melting pot we call America is growing increasingly diverse every day, and that would suggest that, as businesses, we are dealing with an increasingly diverse customer base.
The more a company can understand and relate to the background and needs of the people it serves, the more successful the company will be. Therefore, it is important for companies to build a pool of employees that reflects the customer base. At this level, diversity must be an integral part of a company’s strategic plan. A company must look at its customer base and define goals, expectations and measures that will support the desire to provide added value to the customers the company serves.
When a company reaches a point where its demographics reflect those of the community in which it "resides," the firm has achieved the highest level of diversity.
According to Amy Batiste, executive director of the Institute for Diversity Education and Leadership at the University of Wisconsin-Milwaukee (IDEAL Milwaukee), that level of diversity is achieved when you have a company: "where a spirit of diversity permeates the organization’s culture; where the leadership pipeline is diverse and advancement decisions promote diversity; where leaders are viewed as advocates for diversity and inclusion beyond the organization within which they work; where the company is recognized as a model among inclusive, high performing organizations."

KeleMarie Lyons isthe 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.

Sept. 19, 2003 Small Business Times, Milwaukee

General MetalWorks will purchase Mequon real estate

The owners of a Mequon-based metal-fabricating company will use Small Business Administration (SBA) financing to help them purchase the building their company operates in.
The $807,600 SBA 504 bond was approved Aug. 25 by the Milwaukee Economic Development Corp. for Synergy Works LLC, owned by Mary and Eric Isbister.
The Isbisters also own General MetalWorks Corp., a metal-fabricating company at 10245 N. Enterprise Dr. in Mequon (www.genmet.com). Through Synergy Works, the Isbisters will buy the 43,000-square-foot plant on eight acres of land at that address.
General MetalWorks was incorporated in 1993, carrying on a family-owned metal-fabricating business that had been in operation since 1873. The Isbisters bought the company in 1999 but, until now, the former owner retained ownership of the real estate.
General MetalWorks has 47 full-time employees and one part-timer, and expects to increase employment by 10 full-timers and two part-timers. It is currently advertising for new employees. But Eric Isbister said that, while the company is seeking new employees, its competitiveness will continue to rely heavily on the smart use of technology.
He notes that, when he and his wife bought the company, it had $3 million annual revenue and 50 employees. Last year, it had $6 million in revenue with 47 employees.
General MetalWorks has recently invested in new equipment that will allow it to do more with its employee base — and thus remain competitive in the face of growing overseas fabrication and manufacturing.
The work of that foreign competition is increasingly of high quality, Isbister says. "It would be naive to think they are not good," Isbister says.
And while the quality of that foreign work is increasing, the labor costs are a fraction of US labor costs.
"We need the prudent use of technology to keep manufacturing in Wisconsin," Eric Isbister said. "If we just do things the way we always did them — that just won’t cut it."
The company’s clients include original equipment manufacturers such as Oshkosh Truck, Caterpillar, and Motive Equipment, and business in the point-of-purchase industry such as Frank Mayer & Associates in Grafton and The Howard Co. in Brookfield.
Financing through Ozaukee Bank is also being used for the $2,019,000 real estate purchase.
Other loans

In other action Aug. 25, the MEDC Loan Committee approved a $500,000 loan for Twisted Fork LLC, a new restaurant in the Oriental Pharmacy building at 2238 N. Farwell Ave. in Milwaukee (www.twisted-fork.com).
The 7,000-square-foot restaurant was opened Aug. 22 by a business duo that owns the Qdoba Mexican Grill restaurants in Milwaukee. The duo, Michael Pranke and Eric Wagner, formed Roaring Fork LLC in 1995 to develop the Qdoba Mexican Grill concept in Wisconsin and northern Illinois.
Roaring Fork currently owns and operates eight Qdoba Mexican Grills with four currently under construction in the Milwaukee area. With those openings, Roaring Fork will own and operate 13 restaurants. Roaring Fork plans to develop more Qdoba Mexican Grills as well as several new concept restaurants.
Pranke owns 97% of Twisted Fork LLC and of Roaring Fork LLC while wager owns the other three percent. Pranke serves as president and CEO while Wagner is president.
The restaurant expects to have 50 full-time and 75 part-time employees.
The restaurant project has a cost of $1,221,000, with Anchor Bank also involved in the financing.

A $61,350 loan was approved for Yasin B. Mansour, doing business as Yasin Mansour’s Subway Sandwich Shop. Mansour plans to open a Subway in 1,800-square feet of space at 835 W. Mitchell St. in Milwaukee.
He will use the finacing for leasehold improvements, equipment purchase and working capital.
M&I Bank is also involved in financing of the $151,500 project.

A $130,000 loan was approved for Northstar Mfg. Inc. at 3285 N. 32nd St. in Milwaukee. The loan, along with financing from Milwaukee Western Bank, will help company owners Joseph P. DiNardo, Steve D. Zima and Neal Wegner purchase the building in which Northstar operates. The project has a $325,000 cost.

RRD Real Estate Holdings II will receive a $222,000 MEDC loan to help in the purchase of a building at 2730 N. Humboldt Blvd. in Milwaukee. TriCity National Bank is also involved in financing the $580,275 project.
The building will be the new site for the operation of Bella Luna Pasta, which Russell R. Davis operates in 14,400 square feet of leased space at 2073 N. Commerce St., not far from the Humboldt Boulevard building.
Davis will own the Humboldt Avenue building through RRD Real Estate Holdings II and lease it to his operating business. The building, which is owned by the city, offers more space for manufacturing and a retail outlet.
Davis expects to increase full-time employment from six to 10 and part-time employment from one to five.
Davis also owns Cafe Vecchio Mondo on Old World Third Street and the Lakefront Palm Garden restaurant operation inside the Lakefront Brewery.

Sept. 5, 2003 Small Business Times, Milwaukee

Facilities projects
Irgens Development Partners and Jansen Group Inc. have broken ground a new building for Plunkett Raysich Architects on Milwaukee’s far northwest side. The 31,500-square-foot building will be designed as a “pavilion in the park.”
Internally, the building and interior design studios are centrally located in the floor plan, surrounded by support staff of all types. Externally, the building is centered between the twin towers at Park Place, acknowledging the modern simplicity of the towers, while integrating a park-like setting, said Dave Raysich, managing partner at Plunkett Raysich Architects.
“Providing specialized client service and award-winning design has allowed us to grow and become one of the largest architectural firms in Wisconsin,” said Raysich. “The need for a new building was the result of that growth. Our business started in Milwaukee over a century ago, and it will continue in this great city. Our new building will allow us to feature our design talent to existing and future clients.”
Being sensitive to the environment was one of the goals of the building’s design. Extensive use of glass and metal wall panels depict the firm’s contextual and contemporary approach, while deep overhangs shade the south, east and west facades from the heat and glare of the sun, Raysich said. Other green architecture features include exterior, three-season protected courtyards and sustainable landscape features, as well as numerous site and material considerations.
The developer of the site was Irgens Development Partners, LLC, and the general contractor was Jansen Group Inc.
Magill Construction Co., Elkhorn, recently completed a 16,755-square-foot two-story addition and remodeling project at the Aldo Leopold K-5 School for the Madison Metropolitan School District. The addition included 10 classrooms, a computer room, LMC, a new elevator and a rotunda.
The addition of an Aquatic Center at the YMCA in Lake Geneva is another project recently completed by Magill Construction. The 12,780-square-foot addition includes a six-lane pool and learning pool, as well as an aerobics studio, spin studio, whirlpool and remodeled locker rooms.
KVG Building Corp., Pewaukee, has completed construction of Café Forte, an upscale coffee house at 10530 N. Port Washington Rd., Mequon.
KVG Building also has been awarded the remodeling contract for the offices of RBC Dain Rauscher in Mequon.
John, Joyce and Jim Mitchell of East Troy have selected MSI General Corp. of Oconomowoc for the design and construction of their new restaurant on Main Street in East Troy. Mitch’s Prime Time, an 11,230-square-foot restaurant, will feature a supper club approach to dining. The dining will feature contemporary architecture and a wood-fired grill. The restaurant’s bar will have a sports theme. There will be banquet facilities. A December construction completion date is planned.
MSI General will handle an addition and renovation of Farmers & Merchants State Bank in Marshall. The addition will be 1,200 square feet and will include a tower entryway, a training facility and a kitchenette. A secondary rear entrance will be remodeled in relation to the 46 new parking spaces The renovation will include new teller lines, retail space and a community events information area. The building’s exterior will include a new look with prairie-style architecture, two updated drive-through lanes and a drive-up ATM machine.
Briohn Building, Pewaukee, has completed design and construction of a 14,235-squae-foot office and warehouse tenant improvement for Marken International at W231 N2811 Roundy Circle East, Pewaukee.
Briohn Building has won the contract to design and construct a office and distribution center for Superior Coffee and Tea at W232 N2060 Roundy Circle West, Pewaukee.
Briohn Building has been awarded the contract to design and build a 10,300-square-foot office and shipping and receiving facility for UPS at 5801 S. Pennsylvania Ave., Cudahy.
Briohn Building will design and build an 8,200-square-foot furniture warehouse at 5801 S. Pennsylvania Ave., Cudahy, for Tadych Furniture.
Briohn Building has completed major renovations to the façade and parking areas of the New Berlin Plaza shopping center at 3600 S. Moorland Rd., New Berlin.
Briohn Building will design and build a 2,000-square-foot office for Columbia Sportswear Co. at The Brookfield Towne Centre at 3815 N. Brookfield Rd., Brookfield.
Haag Müller Architects, Port Washington, and Welton Construction have completed a remodeling and additions to Beanies Mexican Restaurant in Port Washington, giving the restaurant additional table space. The adjoining building was incorporated, and a wall between the existing restaurant and bar was removed. Many of the building’s historic features were retained, such as the panelized tongue-and-groove wood ceiling and the exposed brick. Restaurant owners Marcia Endicott and Joanie Nigrelli hired local artisan Sally Duback and Keelie Welton to add a Mexican flare to the bar area.
Haag Müller is handling design work on the remodeling of the food court at Gen. Mitchell International Airport in Milwaukee. The architectural master plan called for a park-like setting within the modern space frame and the proposed upcoming retail design.
The Selzer-Ornst construction company of Wauwatosa was the construction manager for the conversion of warehouse and manufacturing space at the Summit Place tenant suites in West Allis. The project was for the Whitnall Summit Co. The 8,800-square-foot project features exposed ceilings in both the public corridors and tenant spaces. The renovated space was designed by Renner Architects, Milwaukee.

Gust carrying on tradition of quality at Louis Hoffmann Co.

By John L. Campbell, for SBT

When Jim Gust purchased the Louis Hoffmann Co. five years ago, one of the smartest moves he made was acquiring the company’s old telephone number.
"I get a dozen or more calls every month on our old Milwaukee line," Gust said, explaining how he purchased the exchange with a 414 area code as a supplement to the company’s regular business lines when the company moved from Milwaukee to Menomonee Falls, where the area code is 262.
"People don’t have the need for architectural fabricators that often. So it’s easy to lose touch with old customers, former clients for whom the company has worked," he says.
Gust knew that the Louis Hoffmann Co. had a long-standing reputation for high-quality work.
The company is one of Milwaukee’s oldest, starting in 1887 primarily as a sheet metal fabricator. For decades, it owned a building on Jefferson Street in Milwaukee.
Through three generations of family ownership, the Louis Hoffmann name in the architectural metals industry became synonymous with superb craftsmanship. The company built a lofty perch for itself in the industry. The recent renovation of the Pabst Theater exterior is a small sample of its work.
"The metal finishes we give our fabrications are Class A," Gust said.
More than 90% of the company’s work is ornamental, with a small percentage classified as structural.
Trying to reduce the level of quality its craftsmen are accustomed to producing to obtain lower priced work is a precarious practice. It’s like changing the culture of the company, according to Gust, who conceded that such changes could be compared to taking democracy to Iraq.
Hoffmann does business with some of the largest architectural and construction firms in the country. Every job is customized, beginning with an estimate of costs. That’s where the design knowledge acquired from years of experience becomes an important factor. Gust does most of the design and estimating himself, although he’s hiring and training personnel who will assume those duties in the future.
"What we do is translate architectural concepts into design and manufacturing processes," Gust said, explaining how an assembled fabrication might have components that are extrusions, forgings, castings and sheet metal.
Functions that can’t be done in-house are jobbed out to ether firms, but Hoffmann assumes the total responsibility for bringing the finished product to fruition. That’s one reason architectural fabricating is a high-risk business. The time it takes to complete a project could be a year or more, beginning with an estimate, followed by detailed drawings.
The ingenuity of the designer plays a role in deciding how ornamental structures are produced and assembled – areas of expertise foreign to the education of an architect.
As an example, Gust cited a project where the architects assumed the use of linear shaped structures fabricated using L-shaped steel bar. Hoffmann submitted his company’s estimate based on the cost of aluminum extrusions instead of fabricated steel.
"Not only was the material lighter in weight, easier to drill, but it looked cleaner and cost less," Gust explained.
Those qualities in the estimate were key factors in Hoffmann being awarded the project. When the value of a job runs into hundreds of thousands of dollars, customer confidence is an essential ingredient to being awarded a contract.
Sub-assemblies are usually of such large size that it takes a flatbed trailer to transport them, which is why most assemblies have to be completed and installed at the construction site.
"The physical size of our projects protect us from foreign competition," said Gust, who is a hands-on manager.
Gust admits he’s been guilty of micro-managing on a few occasions. As a journeyman sheet metal worker who apprenticed with one of the best shops in Milwaukee, Gust knows the work being done and how long it takes to do it. He worked with J.M. Brennan for 10 years.
Brennan supplied some work for Hoffmann, which is how Gust came to know the Louis Hoffmann Co. was for sale.
"This is a detail business," Gust said. "And I try to set up systems that capture those details with weekly reports. Then, I concentrate on the choke-points."
Gust has acquired two university degrees to complement his trade skills. He earned a bachelor’s degree in education with a major in mathematics, a crucial discipline in the sheet metal industry. He also earned an MBA from UW-Milwaukee.
In November 1998, when Gust acquired the company, all the accounting was being done manually. He introduced the office to computerized systems. Anyone who has lived through such experiences knows the pain involved. Now, the accounting is on computer, and all design drawings are produced and printed using computer-aided-design (CAD).
Buying a company with a 100-year-old history exercises all the management muscle Gust can muster.
During the next five years, Gust plans to concentrate on the shop and the development of management personnel. He has already added a few new pieces of equipment.
"I want to be able to buy equipment with money from earnings, not on bank loans," Gust said. "Although, Milwaukee Western Bank has been very good to me."
In the construction business, it’s not uncommon for some projects to take a year or more to complete. Contracts call for progress payments with a final payment retained until the project gets final approval.
"The jobs we get are usually high-end projects," Gust said, relating how some architects manage to generate unique and costly concepts. "One such project involved 80 feet of ornamental handrail that we sold for $4,000 per foot."
Gust is making progress pumping new blood into the company’s employment of 35 people. Along with a couple Milwaukee School of Engineering students working summers and part-time during the school year, Gust has hired a UW-Milwaukee graduate with a degree in architectural engineering.
"She’s doing design, drafting and project management," Gust said, banking on her educational background to help establish rapport with the company’s architectural clients.
Gust’s oldest of three daughters, a recent graduate from UW-Green Bay, is currently working on marketing projects for the company. The company is making monthly mailings to keep its name in front of construction contractors.
"We have a sales representative in Charlotte, N.C.," Gust said, where they have a project under way with the Bank of America. He’s looking for similar representation in New York City. Gust likes making sales calls, where he finds that his experience instills confidence in architectural clients.
The economy hasn’t cooperated by loosening corporate purse strings for new projects. Last year’s sales were a disappointing $2.6 million, down from $3.4, the previous year. "But this year is looking better," Gust said. "In the first seven months, we’ve already reached last year’s sales level."

Sept. 5, 2003 Small Business Times, Milwaukee

Personnel file
Marybeth Cottrill has been promoted to vice president and senior business development officer at Associated Trust Co. for southeastern Wisconsin. Prior to joining Associated Trust Co. in 1998, Cottrill was a consulting analyst and wholesaler for the financial services industry. Cottrill graduated cum laude with a B.S. in economics and environmental science from Carroll College in Waukesha.
Debbie Kraemer has joined HNI Risk Services as self-funded coordinator, servicing and growing HNI’s self-funded employee benefits division. Kraemer returns to HNI after working as an account manager for Frank F. Haack and Associates. She has more than 20 years of experience in the insurance industry, 17 of which dedicated to employee benefits.
Rick Schneider has joined R&R Insurance Services in Waukesha as a commercial account executive. Schneider has more than 20 years of experience in the health care industry, with the majority of his focus having been on managing the practices of physicians who offer occupational health services to employers in the metropolitan Milwaukee area. Through the Occupational Medicine Program at Medical Associates of Menomonee Falls, Schneider started his career practicing medicine as a physician assistant. He then obtained a degree in industrial and environmental hygiene. In 1996, Schneider became the executive director of Chorus Occupational Health Services. Schneider holds an MBA from The Kellogg School of Management at Northwestern University.
Dennis Jantzen has been hired as a project estimator for J.H. Findorff & Son Inc. in Milwaukee. Jantzen is a graduate of UW-Platteville with a bachelor of science degree in construction management. Jantzen, although originally from Wisconsin, relocated from San Diego where he previously worked for Weis Builders.
Seroka Public Relations in Waukesha, a division of Seroka & Associates, has announced the promotion of Amy Hansen to senior PR associate. During the past year and a half, Hansen served as PR associate. She holds a bachelor of arts degree in communications with an emphasis in public relations and a minor in marketing from UW-Whitewater. She has worked in the public relations’ field for over five years.
AQS Inc. in Hartland has added Dave Franson as technical writer and Barb Gartzke as quality assurance specialist. Franson most recently was a senior consultant at divine, Inc. in Milwaukee. Gartzke most recently was an executive assistant.
Aaron J. Krueger has joined Ruekert/Mielke in Waukesha as an engineering technician, civil/municipal department, CAD Group. Krueger is a student in the architectural drafting/construction program at Waukesha County Technical College. He will be participating in the co-op learning program with Ruekert/Mielke as his sponsor.
Laurie Lau has joined Schroeder Solutions, New Berlin, as customer service manager. She had more than 10 years of experience, and previously worked at Quad/Graphics as a facility coordinator.
Thomas L. Doerr Jr. has joined the Banking, Bankrupcty and Business Restructuring Practice Group of the von Briesen & Roper law firm in Milwaukee. Doerr earned his law degree from Marquette University in 2000, and his bachelor’s degree in 1997 from the University of St. Thomas.
Covenant Healthcare has named Steven J. Fish as regional vice president for cardiovascular services. Fish has 19 years of progressive executive health care experience. His most recent position was executive director for Genesis Heart Institute in Davenport, Iowa. He earlier was administrator of The Heart Institute in Omaha and vice president of Immanuel Medical Center in Omaha. He holds a master of hospital and health care administration degree from the University of Minnesota and a bachelor of business administration degree from UW-Milwaukee.
Kelly Mockler has joined Virchow Krause & Co. as an accountant in the Financial Institutions Group. She holds a bachelor’s of business administration degree in accounting and finance, investments and banking from UW-Madison.
John Wallus has joined SafeNet Consulting as branch manager of the Milwaukee office. His experience in the information technology industry includes management, sales and recruiting. He has spent the last seven years with Born in Milwaukee. During his tenure with Born, Wallus was made partner. Prior to that, he was with Management Recruiters International and Hoechst, Marion, Roussel. He holds a bachelor’s degree, earned cum laude, from Cardinal Stritch University.
Wisconsin Lift Truck Corp. has added Brett King as a sales representative for the Milwaukee and Green Bay markets. His most recent experience includes working at Kin-X Construction with his brother for the last seven years.
Brenda B. Brandt has been promoted to partner at the Vrakas/Blum CPA and business advisory firm in Brookfield. Brandt joined the firm in 1989 following graduation from Augustana College.
David Westrup, Linda S. McPike and Lori A. Wink have been named shareholders in the von Briesen & Roper law firm in Milwaukee. Westrup practices in the firm’s General Litigation and Risk Management Practice Group. He received his law degree, cum laude, in 1989, from the University of Michigan Law School, and his A.B. in 1984 from Columbia College of Columbia University. McPike and Wink practice in the firm’s Health Care Practice Group. McPike received a bachelor’s degree in 1989 from UW-Madison and her law degree in 1992 from Northwestern University. Wink received her bachelor’s degree, magna cum laude, in 1986 from UW-Milwaukee and her law degree, cum laude, in 1994 from the University of Minnesota. James M. Bruss has joined the firm as an associate in the General Litigation and Risk Management Practice Group. He received his law degree, cum laude, in 2003 from Marquette University. Rachel N. Schepp joined the firm as an associate in the General Litigation and Risk Management Practice Group. She received her law degree, magna cum laude, in 2003 from UW-Madison.
Jane Marie Alberti has been named meeting manager of the National Funeral Directors Association, based in Brookfield. She was previously senior sales manager for the Radisson Hotel-Milwaukee Airport, and earlier was corporate event manager and event budget planner for the Harley-Davidson Motor Co. She holds a degree in marketing and communications from Milwaukee Area Technical College.
David Byhardt has joined the Fitzgerald, Clayton, James & Kasten insurance agency in Mequon. He was most recently associated with Security Insurance and earlier at Wausau Insurance. Byhardt has more than 17 years of experience in medical malpractice and property and casualty work. He earned a bachelor’s degree in history from UW-Milwaukee.
Lisa Robbins has joined Brady Marketing Group in Menomonee Falls as public relations director. She has more than 15 years of marketing communication experience. Most recently, she was vice president of public relations at McGlinchey & Associates in Brookfield. She holds a bachelor’s degree in journalism, with an emphasis on public relations and broadcast, from UW-Madison.
Landmark Credit Union has promoted Robert Bruemmer, Sharon Mather and Jay Magulski to senior vice presidents. It also announced new responsibilities for David Powers and Robert Hall. Bruemmer began his career at Landmark in April 1987. He served in many areas of the credit union before becoming vice president of information systems in 1998. In addition to his current management of information systems and facilities, Bruemmer will assume management of consumer loans, mortgage loans, and the Member Service Department. Mather joined Landmark in February 1988 and served in many areas of the credit union before becoming vice president of branch operations in February 1998. In addition to her management of branch operations, Mather will assume management of the Marketing Department and Landmark Financial Services, a subsidiary of Landmark Credit Union that specializes in financial planning and investments. Magulski joined Landmark in February 2002 as vice president of business development and training. In addition to those management duties, Magulski will assume the management of the human resources and compliance departments. Powers joined Landmark in June 2002 as vice president of finance. He will assume the additional management of the Internal Audit and Purchasing departments. Hall joined Landmark in March 1998 as branch manager and became vice president of the Member Service Department in February 2003. Hall will assume the position of vice president of traditional branch operations, which includes management of Landmark’s seven traditional branches.
Sept. 5, 2003 Small Business Times, Milwaukee

Oconomowoc company helps keep the peace during Harley celebration

Quest Technologies in Oconomowoc provided four sound level meters and four outdoor noise measurement kits to Harley-Davidson Motor Co. to help the motorcycle manufacturer measure outdoor noise emissions for its 100th anniversary celebration in downtown Milwaukee.
"We respect Harley-Davidson for having the foresight to make these noise measurements," said Dan Webster, president of Quest Technologies. "In years past, we have provided instruments for Harley-Davidson to help them engineer their motorcycles to be in compliance with noise emission laws from around the world. They have always gone to great lengths to keep noise pollution under control. So, it was only natural that they turn to Quest Technologies again to monitor sound levels during the Harley-Davidson 100th anniversary."
Quest Technologies designs, manufactures and sells Quest and Metrosonics brands of industrial hygiene and safety instruments. Quest Model 2900 sound level meters were provided to Harley-Davidson for the 30-day period surrounding the 100th celebration.
"Since the 1980s, the US has taken a lenient stance toward governing noise emissions, yet just last year, US taxpayers spent $442 million to pay hearing disabilities for veterans alone, not including all of the non-vets who have hearing aids as a result of preventable noise," said Webster. "The lack of federal regulations force Harley-Davidson to try to comply with a variety of local noise ordinances in order to protect citizens from the many health impacts of excessive loud noise, including hearing loss, hypertension and related heart problems and endocrine imbalances."

Sept. 5, 2003 Small Business Times, Milwaukee

Listening is a trainable skill that is crucial to successful negotiations

By Christine McMahon, for SBT

Question: I have a new employee who joined our team seven months ago. Recently, we visited a client to negotiate a contract. During that meeting, it became painfully obvious that this individual is not a good listener. Is listening a trainable skill? If so, what can I do to help him?

Answer: The good news is listening is not a talent people are born with. It is a learned skill. With focus, discipline and ongoing practice, your employee can become a great listener. A study was conducted of an adult education class made up mostly of business professionals. After taking a listening skills course, all participants nearly doubled their listening scores.
The place to begin is with understanding why this individual is not a good listener. We have identified three primary causes:
1) The person has not been taught how to listen. Most business professionals have had no formal listening skills training. They are not even aware of what they are not doing. Coaching, feedback and on-going practice activities are needed to develop the awareness, knowledge and personal discipline required to be an effective listener.
2) The person does not understand the value of listening. People confuse making a positive impression with telling people about their expertise, successes or capabilities. Yet, the greatest need business professionals have today is "to be heard." To make a positive impression, begin by asking the other party questions, and then really listen. The other party will always prompt you for the information he or she wants to know.
3) The person does not have the physical, emotional or mental energy available. Listening requires an intense effort. In fact, people who are actively listening show the same physical signs of energy exertion as people who are exercising: increased heart rate, elevated body temperature and faster circulation. After a particularly stressful negotiation, where an intense level of energy was required to listen and process, it’s not unusual for people to sleep or rest. Their bodies are exhausted and require recovery time. When people are physically tired or preoccupied with an emotional issue, they have limited resources available to listen fully.

External distractions
To be a good listener, an individual must manage a host of both internal and external factors. Of these, the external barriers are the easiest to manage. Some of those include:
Noise — A bell dinging every time a door opens or closes. Equipment running. Phones ringing. Intercom interference. Hallway conversations overriding into your space.
Visual distractions — People coming in and out of the room. Activity outside of a window. A piece of equipment working in the same room.
Objects — People playing with pens, pocket change, jewelry, notebook, Palm Pilots, etc.
The other person — The personal mannerisms, gestures, appearance, voice quality of the other party.
The environment — Uncomfortable temperature. Poor seating conditions. Offensive odors. Distance between the two parties.
Most external issues can be eliminated by simple actions. Refuse to tolerate the distractions and suggest changes.
On the other hand, internal issues are more challenging. They require a higher degree of personal awareness and discipline to overcome. When undetected, they either block or distort what the listener hears, creating a gap in the communication.

Internal distractions
When negotiating, some of the most common internal issues include:
Anxiety — Personal issues, worry, concern, feelings of intimidation all create mindful distractions that can interfere with concentration.
Mental laziness — When a person does not feel the information the other party is offering is important, he or she "zones out."
Physical stamina — Lack of rest creates a tired body. A tired body does not have the same capacity as a refreshed body.
Close-mindedness — When the listener does not share the same opinion as the speaker, an emotional wall is triggered creating a barrier to hearing what is said.
Impatience — When the other party speaks slowly or doesn’t formulate his or her thoughts in a clear manner, mind-chatter fills the space.
Self-focus — Intense self-focus makes it difficult to receive information from the other party.
Cognitive dissonance — When the listener’s mental filters transmute the speaker’s information to reflect his or her beliefs.
Once you identify the internal and external factors that may be distracting your team member’s ability to listen well, move into performance improvement areas. Here are five ways your employee can enhance his or her listening skills.
1. Don’t talk. While this may seem obvious, having the employee write these words on a piece of paper that can be looked at during the meeting will help him or her stay focused, especially when old tendencies kick in.
2. Avoid interrupting. It’s rude. It’s distracting. It’s unprofessional. Effective listeners wait until the speaker has finished, take a brief three- to five-second pause, and then ask a question or reply with information.
3. Demonstrate interest in the other party. Sit forward. Take notes. Make eye contact. Acknowledge the speaker’s position by occasionally nodding your head.
4. Eliminate as many distractions as possible. Lower the blinds and turn on the lights. Unplug the phone. Move to another chair. Do whatever you need to do, even request moving to a new location if the environment is not conducive to listening.
5. Establish listening goals. Have the employee set regular goals. For example, if your employee is having difficulties maintaining focus during a conversation, he or she may want to set a goal to listen intently when visiting the next two or three customers. Or, if the employee wants to eliminate the habit of interrupting others, set a goal for the month to make a concerted effort at all sales and customer meetings, not to interrupt anyone. Have the employee keep a log, a simple checklist, of how many times he or she overcame the temptation and kept quiet.
This process will reinforce the importance to the employee of ongoing practice. It will also provide a forum to work together, measuring progress and identifying new areas of opportunity.
Listening skills can be practiced daily with co-workers, direct reports, during meetings or talking with family members and friends. Every conversation is an opportunity to hone listening skills.
Today, it is estimated that business professionals spend more than 40% of their time listening. In a negotiation, knowledge is power. The less you talk, the better your ability to concentrate on what others are saying. Everything the other party says is potentially important. Therefore, the more you listen, the more you learn and the better your chances of obtaining a mutually agreeable outcome.

Christine McMahon is the owner of Christine McMahon & Associates, a training and coaching firm in Milwaukee. She can be reached at 414-290-3344. Small Business Times readers who would like a
negotiating situation addressed in this column can send a fax to 414-290-3330, or e-mail her at:
ccm@christinemcmahon.com. Her column appears in every other issue of SBT.

Sept. 5. 2003 Small Business Times, Milwaukee

Developer says nearby Wal-Mart won’t hurt New Berlin City Center

By Steve Jagler, SBT Executive Editor

The opening a new Wal-Mart store in a next-door shopping center will have a positive impact on the New Berlin City Center project, according to the retail developer of the new site.
Steven Stewart, managing member of Investors Equity LLC, said a new Wal-Mart in Moorland Square – a stone’s throw away – will not be competition for the new City Center, but instead will increase the traffic flow to the smaller retailers and restaurants that will be built at the site.
Real estate sources said Wal-Mart would disclose its plans to open the store when it meets with the New Berlin Planning Commission this month.
The Wal-Mart store will be opened in the space vacated by Kmart earlier this year.
"It won’t be competition at all. I think it’s an advantage for the City Center. It will bring more people down here. The City Center won’t be ‘big-box,’" Stewart said.
Nick Purtell, a principal at RFP Commercial, Milwaukee, which is marketing the office space and banking space at the City Center, agrees.
"Wal-Mart’s going to drive a lot of people there. Somebody’s going to go into Wal-Mart to buy bulk whatever, but the New Berlin City Center is not going to have the type of retail to compete against Wal-Mart," Purtell said.
The retail shops at the City Center will range in size from 1,600 to 6,000 square feet, Stewart said.
Stewart expects to have commitments this month from a variety of national, regional and local retailers to open stores and restaurants at the City Center, which will be constructed east of the intersection of National Avenue and Coffee Road.
The retailers negotiating for sites in the City Center include an upscale bistro restaurant, a restaurant/grill, an ice cream shop, a sandwich shop, a pizza chain, a health spa and a financial services company, Stewart said.
Stewart said he has commitments from three retailers, but confidentiality agreements prohibit him from identifying the companies.
"I would expect to have several contracts finalized by Oct. 1, and then we can break ground," Stewart said.
The retail sites are being marketed by Mid-America Real Estate Corp., Milwaukee.
Like many outlying suburbs in southeastern Wisconsin, New Berlin does not have a downtown. So, the city is going to create one.
Stewart said the City Center would become the "epicenter" of New Berlin.
"New Berlin is pretty much spread out. It’s never really had a city center, a destination point for its people," Stewart said. "There’s no point for people to congregate. The schools are here, the churches are here, city hall is up the road …."
The City Center site is actually owned by two different parties: Stewart’s NB Commercial LLC owns the 26 acres in the "top half" of the site, while a partnership named Decade Partners owns the "bottom half."
In addition to the 35,000 square feet of retail space and 45,000 square feet of commercial office space, the City Center would create a sprawling complex worth as much as $45 million in development, including:
— The $9 million, 48,000-square-foot New Berlin Public Library, which would include a business resource center, a larger meeting room, a computer lab and other amenities;
— Senior citizen housing;
— Condominiums;
— And a farmer’s market.
The site will be linked by an eastward expansion of Coffee Road and will feature retention ponds, lighted walkways, bicycle paths and other public features designed to add value to the project, Stewart said.
"That library will bring people here. I’m really, really glad the library ended up going in there," Stewart said. "There’s going to be a good mixture of residential and commercial."
RFP is in ongoing discussions with several bank companies interested in opening branches in the City Center, Purtell said.
"We’ve got several banks that seem very interested, but a deal’s not done until somebody signs the lease," Purtell said.
The City Center retail development is being designed by The Albion Group, Milwaukee, and will be constructed by Redmond Construction Co., Waukesha.
For Stewart, who has been finagling the system since 1999 to proceed with the City Center development, the project will be worth the wait. The City Center was delayed by two years after the Wisconsin Department of Natural Resources believed the site could be natural habitat for the Butler’s garter snake, a species believed to be endangered in the state.
An agreement has been reached to leave about six acres of the site undeveloped to accommodate the mystery creature, which Stewart has never seen.
"The Butler’s garter snake, among other things, cost us in the millions of dollars," Stewart said. "We have to keep fences up to protect it, and we have to build in culverts to let it move around. It’s a joke. But it’s a real expensive and terrible joke. But it’s time to move on now."

Sells Printing adds Heidelberg 10-color press, cutting system

Sells Printing Co. in New Berlin has began operation of a new Heidelberg SM 102 10 Color sheet-fed perfecting offset press.
The Heidelberg Cutstar system has been added to the press, allowing Sells to us roll paper or cut sheet stock on the press.
The press will print two sides and has Heidelberg’s CP2000 computerized control system. Image quality is guaranteed with the Image Control scanner and color smart technology, said Don Schroeder, president and CEO of Sells (www.sells.com).
"The new Heidelberg Speedmaster demonstrates our continued commitment to invest in solutions to help our customers," Schroeder said. "We are always listening and doing what is in our customers’ best interest."
Dave Wilson, Sells’ senior vice president of sales, said, "This new press will deliver the quality and efficiencies our customers are asking for today."
Because the 10-color prints four process colors on both sides, the extra printing units can be used to make fast version or imprint changes, a specialty at Sells, Wilson said.
John Moebius, Sells’ vice president of sales added, "The new press is part of a growing investment to service our customers more efficiently. We have also added a new high- speed Stahl TD top of the line folder. The folder has electronic intelligence for instant set-up, allowing customer projects to move through our shop as fast as possible."

Sept. 5, 2003 Small Business Times, Milwaukee

Oak Creek company expands as RV sales skyrocket

By Steve Jagler, SBT Executive Editor

Fueled by the growing popularity of recreational vehicles since 9-11, Hanna Trailers Inc. will expand and move to a new 19,000-square-foot building at 7571 S. Howell Ave. in Oak Creek this fall.
The company has outgrown its current site at 8511 S. Howell Ave., according to Al Downs, president of the firm.
"We never thought we’d outgrow this spot when we moved in here in 1990," Downs said. "I think what’s happened is that people are not wanting to fly as much since 9-11. They’re doing more of the shorter trips, staying closer to home, and they’re buying RVs."
Hanna Trailers provides recreational vehicle repairs and parts, in addition to selling and repairing utility trailers, four-wheel carts and gas-powered scooters.
Hanna Trailers grew to $1.8 million in annual revenues last year, Downs said.
US ownership of recreational vehicles is at its highest level ever, according to a recent study by the University of Michigan Survey Research Center. The study estimated that 6.9 million households owned recreational vehicles in 2001, up 7.8% since the previous survey in 1997 and 19% since 1993.
"The strong and enduring appeal of the RV lifestyle is clearly confirmed by these ownership data," said Richard Curin, consumer surveys director of the research center.
"Because RVs provide travelers with greater freedom, flexibility and control, they have demonstrated appeal to Americans in times of national emergency," Curin said in a prepared statement when the study was released in May. "Domestic by its very nature, RV travel is less affected by international crisis and relies less on foreign visitor traffic for support. In spite of uncertainties in the months leading up to the war, RV shipments remained strong. The RV industry is currently in a growth cycle, and the long-term prospects for RV sales remain quite bright."
Today’s typical recreational vehicle owner is 49 years old and married, with an annual income of $56,000, according to the study.
As sales have grown, so to have the needs for repairs and parts, Downs said.
"Things have been pretty strong," he said.
Downs sold his interests in W.J. Kuhn Automotive Center Inc. April 1 to Matt Merschdorf and Scott Brooks. Hanna Trailers had shared space with Kuhn.
About 10,000 square feet of the new building will be devoted to shop and repair space, and the remaining 9,000 will serve as retail space, Downs said.
Downs estimated the value of the new development at $1.25 million, including his purchase of the eight-acre site.
To save costs, Downs is serving as his own general contractor for the pre-cast concrete structure and is hiring several subcontractors for construction.
The building was designed by Torke/Wirth/Pujara, a Wauwatosa-based architectural firm.
Although he has no background in construction, Downs said he has not had any problems dealing with city officials while serving as the general contractor.
When Hanna Trailers, which also operates the Hanna Motor Sports subsidiary, moves into the new building in October, Downs plans to double his current staff of eight employees.

Sept. 5, 2003 Small Business Times, Milwaukee

2004 also will be special for local tourism industry

For the past four years, huge tourism events have been handed to the Greater Milwaukee Convention & Visitors Bureau like gifts on a silver platter.
This year’s gift, of course, was the Harley-Davidson 100th Anniversary celebration, which roared through southeastern Wisconsin with an estimated 250,000 visitors last week.
Last year, Milwaukee hosted Major League Baseball’s All-Star Game. In 2001, Miller Park and the Calatrava addition to the Milwaukee Art Museum opened. In 2000, the Potawatomi Bingo Casino opened in the Menomonee River Valley. In 1999, the Midwest Airlines Center opened its second phase of expansion, enabling the city to attract larger conventions.
Such splendid events have helped the region’s tourism economy to grow by 3% in each of the last two years at a time when tourism declined substantially in most urban areas in a down economy across the nation, according to Vanessa Welter, spokeswoman of the Milwaukee bureau.
"The good news is that we haven’t had a decrease. It has been wonderful," Welter said.
To be sure, last week’s Harley celebration was a once-in-a-lifetime gig.
So, will the Hog party leave Milwaukee with a giant tourism hangover in 2004?
No, according to Welter.
In fact, Welter is quick to reel off three events that will have significant impact in southeastern Wisconsin’s tourism industry next year: A major golf tournament, the launching of a new high-speed ferry and the staging of a very popular historical museum exhibit.
The 2004 PGA Championship tournament to be held at Whistling Straits in Kohler, Aug. 9-15, already has sold out its daily passes for the Thursday, Friday and Sunday rounds.
Welter expects the golf major event’s impact to stretch south to Milwaukee, because the Kohler area will not be able accommodate lodging for the throngs of people. Further, golf fans will be driving through Milwaukee or flying into Milwaukee to get to the tournament.
For a glimpse of the impact the event will have in 2004, one need only look to this year’s PGA Championship, which took place in August in Rochester, N.Y.
The event drew about 50,000 people to the Rochester region, according to Patti Donoghue, spokeswoman for the Greater Rochester Visitors Association.
Nearly all of the region’s 6,500 hotel rooms were booked for the week, and Donoghue said she had heard "horror stories" of normally affordable rooms in chain hotels going for about $400 per night.
About 350 private jets flew into Rochester for the tournament, she said.
"I can tell you that the impact has been phenomenal. It was a wonderful, wonderful opportunity for the area, to be seen on national television and have people come to Rochester who otherwise never would have," Donoghue said.
However, Donoghue warned that the clientele that will flock to southeastern Wisconsin to see the PGA Championship will be much different in personality, purpose and spending habits than the Harley crowd that invaded Milwaukee last week.
"They won’t be partying all night and spending all kinds of money. These people were here to see the golfers. They eat in the restaurants and sleep in the hotels, but it’s a long day. It’s different," Donoghue said.
In addition to the golf tournament, southeastern Wisconsin’s tourism industry also will receive a boost from the Lake Express high-speed ferry. Beginning next June, the Lake Express will have a capacity to carry about 250 passengers and 46 vehicles per trip across Lake Michigan between Milwaukee and Muskegon, Mich., in just two hours and 20 minutes.
"That is going to happen. It’s a done deal. It’s going to open up the whole Michigan market to us," Welter said.
Another significant event for the local tourism industry in 2004 will be the staging of "The Quest for Immortality: Treasures of Ancient Egypt," an exhibit that will begin in April at the Milwaukee Public Museum.
The exhibit will feature 115 objects from the Egyptian Museum in Cairo, the Luxor Museum (Egypt) and archeological sites of Tabis and Deir el-Bahari, many of which have never been on public display or outside of Egypt.
The Milwaukee Public Museum has been named the sole Midwest North American venue to host the world-class exhibition.
"Chicago was not able to get this, and we were. It’s huge," Welter said.
Looking ahead to 2005, the region’s tourism business still looks strong, Welter said, as Milwaukee will host the national conventions for the NAACP and the US Hispanic Chamber of Commerce.
Meanwhile, projects such as the Milwaukee Public Market and the Pier Wisconsin center are on the horizon, Welter said.
"It just keeps coming. We’re thrilled. This city just keeps breaking through," Welter said.

Sept. 5, 2003 Small Business Times, Milwaukee