MEDC OK’s loan for new Oasis Coffee site

Oasis Coffee Service and Oasis Vending Service will use a $112,000 loan from the Milwaukee Economic Development Corp. (MEDC) to help finance development of its new location in the city’s Bay View neighborhood.
The MEDC Loan Committee approved the loan, and four others, at its May 5 meeting.
Oasis owner Cathy Rohde is purchasing and renovating a 9,578-square-foot warehouse and office building at 300 E. Bay St. – the corner of Bay and Kinnickinnic Avenue. The company had been on Fairview Avenue on Milwaukee’s west side.
The business provides commercial coffee makers and sells coffee supplies to companies in throughout metropolitan Milwaukee. It employs two people full-time and four part-time.
Ozaukee Bank is providing an additional $243,000 in financing for the projects.
The MEDC Loan Committee also approved a $290,000 loan for FS Enterprises which plans to purchase a building in Milwaukee’s Riverworks industrial area for a American Auto Beauty Carstar business.
Ferdinand and Susan Jones own the company and currently operate American Auto Beauty Carstar at 2108 N. Farwell Ave. on the city’s east side. They plan to purchase a building at 3866-3870 N. Fratney St. which has 6,360 square feet of office space and 33,372 square feet of warehouse space.
The company would occupy 20,585 square feet of the building, with the remaining space occupied by Absolute Custom Extrusions, a current tenant.
American Auto Beauty Carstar now employs 12 people full-time and one part-time. It would add six full-time employees at the new site.
M&I Bank will finance $362,500 for the move while the Joneses will use another $72,500 in equity financing.

A loan of $49,000 was approved for The Soup Market of 189 N. Milwaukee St. The Soup Market is a new business formed to continue the operations of The Soup Kitchen, a soup wholesale and retail business started in 1999 by David Jurena. Jurena sold his products at local farmers markets and to several coffee shops and cafes in the area. He was leasing food preparation space from Bella Luna Pasta when that business was sold, leading to the loss of his lease for manufacturing space.
Bella Caffe owners Tim Talsky and Jim Nowlen plan to reopen The Soup Kitchen under the new name The Soup Market, in rented space in Bay View.
The Soup Market will sell made-from-scratch soups, stews and chilis through wholesale accounts, through its retail location at 2211 S. Kinnickinnic Ave., through farmers markets and at special events.
The business will use a $74,000 Park Bank loan in addition to its MEDC financing.

In other action, the MEDC Loan Committee approved a $53,660 loan for Maddie Turner Sr., who operates Ebony Man’s World Hair Salon I and II. He plans to buy a 5,440-square-foot building at 7526 W. Appleton Ave. in Milwaukee for a third location. The hair salon would occupy the first floor and basement while offices on the second level would be rented out.
Ebony Man’s World Hair Salon I, which is now owned and operated by Turner’s son, is at 3517 W. Townsend St. while Ebony Man’s World Hair Salon II is at 4476 N. 60th St.
Turner will use a $153,000 loan from Columbia Savings & Loan in addition to the MEDC financing.

The MEDC Loan committee also approved a $60,000 loan for KRP Development Corp. to purchase property at 3002-08 N. Dr. Martin Luther King Jr. Dr. in Milwaukee. The corporation, formed by Paul Kharouf and Casey Dembowick, will buy the property, which includes an 18,350-square-foot building.
Riverwest Engineering, of which Dembowick is part-owner, will occupy half of the building. The company now employs two people full-time and one part-time. It plans to hire three more full-time employees and two more part-time workers.
Continental Savings Bank is providing $75,000 in financing for the project, while another $15,000 in equity capital is being applied.

May 16, 2003 Small Business Times, Milwaukee

How to respond to negotiation ploys

By Christine McMahon, for SBT

Question: What are some common underhanded ploys people use to get leverage in a negotiation? How do you recommend responding to such tactics?

Answer: Fortunately, the majority of business negotiations are forthright. People want to preserve the relationship, so they look for mutually agreeable solutions.
However, there are people who use ploys and tricks to get the upper hand. Sometimes it works to their advantage — in the short-run they get what they want.
Other times it backfires and they compromise a relationship.
People have long memories. When they feel the other party played by a different set of rules, trust is broken and resentment builds. It’s only a matter of time before the tricksters "get what they deserve."
Ploys are only limited by the imagination of the wily. While the list may be ever changing, we have identified six common tactics. They include:

1. Intimidation tactics – This is when the other party is abusive, insulting, hostile, loud or incessantly demanding. All of those are bully tactics. It’s not easy — in fact, it’s sometimes impossible — to negotiate with someone who is overbearing.
The best approach to dealing with this type of negotiator is to match the person’s voice tone and volume, stand up and say, "Jack, I want to continue our discussion, but not like this. If we can’t talk in a respectable manner, than I will need to leave until you are in a better state of mind!"
When you do that, if the other party continues to talk right on top of you, then say his name loud three times, "Jack. Jack. Jack." Pause. "I want to work with you in finding a mutually agreeable solution, but not like this." Pause. "If you continue, I will leave."
Usually saying the person’s name three times at the same intensity and volume as he is speaking will interrupt his brain just enough that he will stop.
If that doesn’t work, then pick up your things and say, "Jack, when you ready to talk and are more in control of yourself, call me." Then walk out.
I once had a boss who was just like this. Intimidation was his tactic of choice. I was young and inexperienced. Then I read a book about how to handle difficult people. It only took two confrontations to end his insulting and belittling behavior. The key was practicing until the shaking stopped and I felt confident.
The first time I used the tactic, I interrupted him saying his name, and told him I was going to leave. He threatened to fire me. I swallowed my fear and said, "Jim, I do my job and gets results. I deliver. I am not paid to be insulted and belittled by you. Fire me if you must. But know that I will make sure every executive in this company knows exactly what you said to me and how you said it. I promise I won’t leave a detail or insult out."
I was shocked – it worked!
The next time he raised his voice and started to insult me, I only had to say his name once and he just shut up.
It’s been my experience that most people who threaten you or use anger as a tactic have a weak negotiating position they are trying to hide. Or they are trying to see just how strong of a backbone you have. Best advice: Hold your position. Have staying power. Let your confidence rule.

2. Stonewalling – This is when the other party refuses to budge from their position. You have three options.
First, explain the dire consequences of not investigating other possible options. In some cases, the dire consequences may be that you will be forced to walk away and let the negotiation fail.
The second option is to stonewall your position. The risk in taking this approach is that the focus of the negotiation becomes one of posturing rather than resolution. Rarely does it facilitate movement toward an agreeable solution.
The third option is to walk away. Say, "John, I’d like to find a way for us to explore some possible solutions. If we are unable to talk through the issues, then you will force me to walk away. I would prefer not to do that, but I am prepared to do so."

3. Evasion Tactics – You can expect some degree of evasion in every negotiation. This is often purposeful so the other party can assess your negotiating acumen at the bargaining table. What matters is the motive behind the evasion. What is the person avoiding? What would this information disclose that would impact your position or decision? How does this work to the other party’s advantage?
A consistent pattern of evasion is often a veil to hide something of importance.
If you are unsuccessful, tell the other party that you are at a standstill unable to move forward unless you receive the information you requested.
Assuming you are not satisfied with the response, you must walk away and let the negotiation fail.
If you do proceed, be sure to include in the written agreement any provisions you feel are necessary to protect your interests.

4. Stalling tactics – These are often used when the other party knows you have a deadline. Their intent is to slow the process down so they garner a better deal from you.
If this is the case, you may want to inform the other party that you have found a new option that has promising potential and you need to know whether he or she is still interested in talking or not.
If you find that you can’t get through to that person directly, leave a voice-mail message. In your message, state that if you don’t hear back by a certain date, you will assume he or she is not interested.
That almost always gets a return telephone call. If the person doesn’t call, then at the very least you know he’s not interested.

5. Deadline pressures – This is when the other party uses a deadline as a threat to get you to accept unreasonable demands. They make an unreasonable offer and then give you a short timeframe with which to make a decision.
You can turn this to your advantage by saying, "Since you have a deadline and can’t discuss the issues, I’ve given you my best offer. Let me know by your deadline if it’s acceptable."
That leaves the next move up to the other party. You can bet if it was a ploy, they will come back with a restatement of their position.

6. Taking you out of the loop: This is when someone goes around you and tries to negotiate the deal with someone else in your organization. It’s usually because they didn’t like the terms you presented. They want to find someone else who might be a softer touch.
The best approach is for the new negotiator at your company to listen intently to everything the other party says.
Your associate needs to ask probing questions to learn about motives and outcomes. Then he or she needs to tell the other party, "I appreciate you contacting me. At this time I am not prepared to respond. Where can I reach you on __?" (Give yourself at least two days.)
Your associate should then discuss that conversation with you.
Then on the scheduled date, call the other party and say, "It appears that it is our company policy not to get involved with another employee’s negotiation unless invited by that co-worker. You will need to resume negotiation discussions with that person."

These are some of the most common tricks and ploys. Rarely are these effective in building relationships. In fact, they can be the trigger that causes the negotiation to fail. Once respect is lost, the negotiation becomes personal. The original intent to achieve some degree of win/win is negated. It now becomes a fight over pride and territory, and no one really wins.

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.

May 16, 2003 Small Business Times, Milwaukee

Support business by supporting the arts

by Jo Hawkins Donovan, for SBT

Many people I coach hold leadership positions in arts organizations in my community. It is a privilege to work with these executives who are so highly committed to their work.
I remember when I first moved to this city, more than 20 years ago, how impressed I was with the caliber of visual and performing arts available. I know we have a world-class museum, a world-class institute for art and design, a ballet company, a symphony orchestra, opera companies and theatre groups that fill us with delight and pride.
The business case for the arts is pretty well broadcast around this and any other city. We know when we want to attract new professionals to our town, we "show off" our many artistic venues. It’s quite well documented that our outstanding cultural community adds to the attraction and thus the growth, of our city.
Richard Florida has published a timely perspective on the relationship between creativity and the future of a city’s economy. His book, The Rise of the Creative Class, makes a good case for regional leaders taking a new look at creativity as an economic engine. Florida says we’ve got to be seen less as an industrial center and more of a creative center. "Fill the factories with art and music. Let’s be wild", he urges. "It’s not just about the amenities of a city," says Florida. He sees creativity and commerce as the same things.
Beyond business though, even beyond delight and pride — and more significant, is that part in each of us, that slice of your humanity and mine, that is touched by the experiences afforded us through these non-profit organizations.
Who has not felt time stand still when being drawn into a painting or transported by a breath-taking performance? I have so many memories of standing and applauding for all I’m worth, thinking how proud I am to be a part of this human race. I’ll think, yes, we are capable of slimy, deceitful behavior, we human beings. And yet we are capable of this too, this excellence, this collaboration, this giving from the top of our talents and the bottom of our hearts.
I always want every child in town to have that experience, to be in the presence of excellence, to resonate with the finest that we can produce as a species. Nearly every arts organization here supports programs designed toward that end. I think they bend over backwards to make it possible for anyone 4 or 94 years old to have access to the high level of achievement that flows out of artistic expression. "Come; leave your struggles behind for a while. Absorb the magic of a Georgia O’Keefe, or feel your spirit dancing atop the strings of Samantha George’s violin."
So no problem, you might be thinking. We are immersed in that rich and diverse cultural community, true. The problem is that all of these arts groups are feeling the pinch of the economic squeeze that is disturbing the whole country.
Business owners who are announcing hiring freezes and salary cuts may feel they have to slash the amounts they customarily contribute toward our arts community. I encourage them to take a longer view, and consider the connection between supporting the arts and breathing new life in the economy. We need these groups and we need the quality that emanates from them to grow ever stronger, not to be diluted for lack of funding.
Commerce in our city has provided the oxygen that allowed the arts organizations to thrive. As a city, we need that life force to continue strong. We can’t expect our city to shine as brightly without our arts organizations. And we can’t expect them to forever provide us with the same caliber of inspiration and delight if funds are shrinking.
Granted, it may take creative thinking to figure out how to continue that support. I’ll bet though, that employees would enjoy being a part of that kind of brainstorming. I’ll bet too, that every arts organization in town would welcome collaborative partnerships in seeking solutions. It is just too important to cross our fingers and hope.
Then there are the rest of us (a bow to Jacqueline Mitchard). When fretting over our individual budgets, we can choose to "cut" somewhere else, and continue our support for the arts, through cash contributions and season subscriptions. We can give a birthday gift of a pair of symphony tickets instead of some useless trinket. We can respond to the many invitations we receive in the mail for fund-raising events. We can attend more of them — and be entertained well in the process. We can simply be mindful that this is the time for us to demonstrate our appreciation for all we have. It will not magically continue.
We can honor these words of Johann Wolfgang von Goethe: "One should, every day at least, hear a little song, read a good poem, see a fine picture and, if possible, speak a few reasonable words."
I wish you many days filled with the best of song, pictures and words.

Jo Hawkins Donovan has a coaching and psychotherapy firm in Whitefish Bay, and can be reached at 414-332-0300, or jo@hawkinsdonovan.com. The firm’s Web site is www.hawkinsdonovan.com. Hawkins Donovan will respond to your questions in this column. Her column appears in every other issue of SBT.

May 16, 2003 Small Business Times, Milwaukee

Sydney Hih building assessment hits $1.6 million
Eisenberg threatens lawsuit against alderman

By Charles Rathmann, of SBT

Attorney Alan Eisenberg is threatening to sue Ald. Paul Henningson over Henningson’s discouraging remarks to potential tenants of the Sydney Hih Building at 300 W. Juneau Ave. in downtown Milwaukee.
Eisenberg and at least one potential building tenant claim Henningson not only suggested the building would be torn down as a result of an adjacent redevelopment project, but refused to even bring applications for liquor licenses for lessors before the city’s Utility and Licenses Committee.
The building, which has offered low-cost office, gallery and studio space since the 1970s, is within a 26-acre redevelopment area created by the removal of the Park East Freeway spur.
Last November, Henningson told Small Business Times he had never claimed the building would be demolished, but he did make other remarks about the property, referring to it as "a cancer on the neighborhood."
Henningson also claimed that Eisenberg, whose Knapp Street Realty has the building listed for sale, is likely to "sit" on the property until it impacted redevelopment plans for surrounding land enough for someone to offer Eisenberg the $1 million asking price.
"Right now, he wants a million dollars for it, and that is absolutely absurd," Henningson said. "The place across the street, which used to be a Car-X, sold for $600,000, and that was twice the space. So ostensibly, his land is worth $300,000. And the building isn’t worth a penny."
However, in May, the assessed value of the building rose to $1.6 million from $722,000, according to a city assessment database, and one potential lessor came forward and confirmed that Henningson was claiming the building would be torn down.
"It’s just a matter of time, and we are going to sue him," Eisenberg said of Henningson.
Henningson, who was indicted in January of last year for extortion and embezzlement, did not return a reporter’s recent phone calls regarding the matter.
Eisenberg said several major restaurateurs expressed interest in the property or actually signed leases until they found Henningson would block a liquor license. While one potential lessor mentioned by Eisenberg – Il Mito owner Michael Feker – denied license issues kept him out of the building, one businessman who had plans for a nightclub at the site confirmed Eisenberg’s account.
"I never got to talk to the alderman," nightclub owner Darcius Young said. "His assistant – she told me that he said he would not be for a license there. There may be some other places downtown. He (Henningson) doesn’t have a problem with development, but that place, it was a no-no. He didn’t even have the courtesy to call me or put me on the calendar to even be heard. I filled out an application for a class B license, and I never heard back from them. … On the application, it says they get back to you in six to eight weeks."
Young, who at the time owned a nightclub at the intersection of 17th and Chambers streets on the city’s north side, already had a liquor license he wanted to transfer to the Sydney Hih site. The building was the site of the Mine Shaft night club in the 1970s and 1980s.
"I was told it was going to be for redevelopment – that building might not be there," Young said. "I was told by Alan Eisenberg that the building was not going to be torn down. But I feel (the city) kind of started their redevelopment plans with the building still there."

Analysis says Sydney Hih redevelopment could be lucrative

According to an analysis performed by a University of Wisconsin-Milwaukee architectural student, the Sydney Hih Building – actually a collection of buildings known as the Nicholas Senn Block – could be profitably transformed through an adaptive reuse process.
The analysis assumes total redevelopment costs of just over $3.3 million, including a purchase price of $850,000.
Peter Sadowski, who presented his master’s thesis on a nearby property May 9, has been studying reuse options for the building since September of last year.
According to Sadowski, factors that would work in favor of redevelopment of the Sydney Hih building at 300 W. Juneau Ave. include the availability of historic preservation tax credits and the fact that new construction would certainly be much more expensive than redeveloping the existing structure.
The building’s location near the Bradley Center on a high-traffic intersection, with an average 24-hour traffic count of 14,200 vehicles is key, with access to the Riverwalk, the Water Street entertainment district and other amenities, according to Sadowski.
Properly redeveloped, the Sydney Hih could support a lease rate of $38 per square foot, Sadowski concluded.
However, challenges for the Sydney Hih building will include parking. The most logical solution, according to Sadowski, would be to purchase adjacent property from the City of Milwaukee, adding that "in efforts to encourage the restoration of this particular property, the city has acknowledged the willingness to contribute either monetarily or with land rights. There may be a good chance that the city would contribute land rights to the north or west, since it will cost them nothing and they will receive a maintained, renovated showcase building that represents the original downtown."
Other challenges would include the need for redesigned exits to comply with international building codes, the need for new mechanicals and plumbing and the fact that floor plates between the different structures in the building are uneven, necessitating a system of false floors to make the space more usable, Sadowski said.

May 16, 2003 Small Business Times, Milwaukee

Dysfunctions in a management team
Five ways your managers can be failing – and how to correct the deficiencies

By Harry S. Dennis III, for SBT

TEC International and the Milkin Institute sponsored an electrifying conference recently that brought to one location many of the best management and economic thinkers of our time. One of them, Patrick Lencioni, offered some penetrating remarks about "dysfunctional" management teams.
This month, I share them with you at a time in our economic cycle when I believe that the ability of management teams to be "functional" is of the highest priority. Let me address the five culprits, one by one:

Dysfunction No. 1: Inattention to results
Companies suffering from this team malaise are seen in businesses that have stagnated, where competitors are winning the game, where good employees are leaving and where distractions abound everywhere.
The remedy is leadership that publicly declares the results that are needed and then produces results-based rewards.
Contrarily, members of functional, trusting teams find ways to satisfy and retain achievement-oriented employees, minimize individualistic behavior, avoid petty distractions and resent failure at any level.
A Madison TEC member realized he had a president who was very good at focusing on the "process" of business, but not the results of business. He fired him. The business, under the guidance of a new president with a new functional team, has made a dramatic turnaround; 2003 will see the best results for this company in its 40-year plus history!

Dysfunction No. 2: Avoidance of accountability
Lack of management accountability won’t slip under the rug. Everyone sees it. Bill comes in late on Mondays, seems to have an excuse to get home early on Fridays, and leaves team projects dangling. He’s the No. 2 guy so no one can say anything.
Impact? Well, the message is that mediocrity is OK. The fact that deadlines come and go doesn’t seem to mean anything and, in general, the team leader is seen as powerless and ineffectual.
The remedy is the publication of goals and standards, regular progress reviews, team rewards and an insistence by the team leader that r
egardless of one’s position on the team, each member is accountable to the other.
Contrarily, members of trusting teams let the poor performer, regardless of his or her status, feel the pressure to improve. They challenge one another’s approach to problems and they do so sooner than later. They work from a platform of respect, not from a platform of accusation, denial or avoidance.
A Green Bay TEC member put his son, who was head of sales, in a two-day management development "fierce conversation" seminar. He later said his son had to either "put up or shut up" as a member of his management team. It’s a work in progress as this article is being written.

Dysfunction No. 3: Lack of clarity
The team has no directional sense and seems to retrace the same issues over and over again. There’s a lot of analysis going on here and there, and the common complaint is, "We can’t seem to get the pieces to come together." Lots of "second-guessing" going on, too.
The remedy is to set and meet deadlines, to "cascade" messages a little bit at a time but all pointing in the same direction, to develop "worst-case" and "best-case" portraits, and then for the team leader to go at it, even in the absence of full-team consensus.
Contrarily, members of trusting teams set clarity around direction and priorities, get themselves aligned around common objectives, move forward quickly and change direction without hesitation or guilt.
The owner of a well-known Wisconsin paint company faced an impossible battle against the EPA regarding lead contamination dating back 50 years and was close to total business failure. He mobilized his team around a very specific objective: to make the business an attractive acquisition to a deep pocket partner, who could assume the challenge of the on going EPA battle. He succeeded!

Dysfunction No. 4: Fear of conflict
Controversial topics are ignored, there is a prevailing "hidden agenda," only selective team member opinions are solicited and a lot of the team’s energy is devoted to "behind door" discussions, never out in the open among all team members.
The remedy is to actually "mine" for conflict, to permit and encourage disagreement, but to use it in a constructive manner to push toward team goals, without criticizing any party to the conflict.
Contrarily, members of trusting teams have lively, interesting meetings, exploiting the ideas of all team members, debating issues spontaneously and saving the critical points for unified team action.
A Milwaukee TEC member recently faced a two-plant consolidation issue due to economic uncertainties. The question on the table was, "Which plant do we shut down?" His senior group has spent three months debating the pros and cons of Plant A versus Plant B. They needed to reach a decision by April 1. Both plant managers were on the decision team. The decision was reached, they have regrouped and are moving forward.

Dysfunction No. 5: Absence of trust
Concealing team weaknesses and mistakes, not asking for helpful feedback, holding grudges, dreading meetings for fear of exposure, giving answers that don’t answer anything and so on are signs of a lack of trust.
The remedy is for the team leader to openly display vulnerability to the other team members and for each team member to "come clean" about his or her concerns, reservations and trepidations about the team process. In addition, the team must open itself up to self-scrutiny by putting it all on the table and doing so believing that trust in this process will prevail.
Contrarily, trusting teams take risks with one another, ask for help, admit shortcomings, avoid politics and give one another the benefit of the doubt. They keep it all on the table.
A central Wisconsin TEC member recently laid off more than 10% of his workforce. There had never been a layoff in this company. It was critical that his management team keep the lay off information in total confidence for the four-month period during which the lay off deliberations – among the management team – transpired. A difficult decision, and the action was handled with little repercussion.
Until next month, I wish you good team functioning!

Harry S. Dennis is the president of TEC (The Executive Committee) in Wisconsin and Michigan. TEC is a professional development group for CEOs, presidents and business owners. He can be reached at 262-821-3340.

May 16, 2003 Small Business Times, Milwaukee

Manufacturing program wins legislative support
But state lawmakers deal a blow to small business insurance pool

One beneficiary of legislative activity in the powerful committee is the Wisconsin Manufacturing Extension Partnership (WMEP). The Madison-based technical support organization had been zeroed out of the Department of Commerce (DOC) budget by Gov. Jim Doyle.
However, Sen. Bob Welch (R-Redgranite), was behind a measure that pulled $100,000 from the Department of Commerce’s Main Street program and restored it to the WMEP.
"I am a big fan of WMEP," Welch said. "WMEP was zeroed out by the governor. … The Governor has since sent us a letter that said he would like to restore his cut to WMEP."
Because of the program’s popularity, Welch said the committee would likely comply with the governor’s wishes.
"It is likely that we would restore even more now that the governor has backed off his early cut," Welch said.
According to Sen. Ted Kanavas (R-Brookfield), the governor requested $500,000 be returned to the WMEP.
"At that point, I would like to take the $100,000 we allocated and put it back in the Main Street program," Kanavas said.
The WMEP provides subsidized consulting services and training to small manufacturers interested in implementing lean manufacturing processes. The organization received about $1 million in funding from the state in 2002.
State funding and additional revenue from fees charged to manufacturing clients for consulting and training are matched by the federal government.
According to WMEP executive director Mike Klonsinski, the disappearance of state dollars would mean a reduction in federal funding, which is allocated in proportion to revenue from the state and fee revenue.
"We have looked at things and determined we could still keep up with our mission with half-funding," Klonsinski said. "But a full cut gets to the very core of WMEP. To get at it, we would have to increase revenue by seeking larger contracts with larger manufacturers."
According to Klonsinski, the average size of a consulting contract WMEP executes with manufacturers is worth about $5,000 to $6,000.
Meanwhile, Welch and other members of the Joint Finance Committee pulled the plug on a program strongly supported by the governor – the Private Employer Health Care Purchasing Alliance.
The idea of an insurance pool similar to those implemented in other states originated as part of former Gov. Tommy Thompson’s final biennial budget bill. The proposal was hobbled due to technical problems, which were resolved in the version delivered to former Gov. Scott McCallum as part of his budget proposal.
While the pool was to be a self-funded private industry initiative, the biennial budget proposal included an $850,000 loan from the State Life Insurance Fund, which McCallum characterized as unconstitutional.
McCallum vetoed provisions for the loan, as well as other portions of the program, including restrictions on the degree small business health insurance premiums could fluctuate above or below a midpoint.
Earlier this year, the Wisconsin Private Employer Health Care Coverage Board, the agency responsible for overseeing the pool if it is implemented, commissioned a study from the Institute for Health Policy Solutions in Washington, D.C., to identify steps necessary to implement the pool.
However, the Joint Finance Committee shot down Doyle’s budget provision for the pool on a 12-4 vote, instead earmarking over $300,000 to fund a task force hand-picked by the Republican legislature to analyze the potential for a pool.
Kanavas said he was not aware that a study had been commissioned or recommendations regarding the pool had been tendered.
Welch said the state has spent about $1.4 million on the program, even though previous funding was vetoed.
"My understanding is that perhaps some of it is not spent, but to a legislator’s understanding, once it is given to a state agency, it is gone," Welch said.
However, Welch said he supports the pool in principle.
"I like the idea," Welch said. "It is universally popular to have some type of pooling opportunity available to small employers. But to do that, you have to cross a few boundaries that nobody wants to cross. It starts looking more like socialized medicine."
A Doyle spokesman was critical of the committee’s stance on the pool.
"The governor is strongly committed to the program," Doyle press secretary Dan Leistikow said. "He was disappointed that the first thing the legislature did when they took up the budget was to cut a health care program that is designed to make health insurance affordable for small businesses."
According to the state representative of the National Federation of Independent Business, the committee’s move is a setback.
"I certainly would have preferred that they let it pass through," said NFIB Wisconsin state director Bill Smith.

May 16. 2003 Small Business Times, Milwaukee

Creating a culture of entrepreneurialism
Conference promoters say Wisconsin has the elements in place for a more vibrant economy

By David Niles, of SBT

Wisconsin’s risk-averse culture is changing, but more needs to be done if the state is to have an economically viable future, say members of a group organizing an upcoming entrepreneurs conference in Milwaukee.
"The culture is changing," says John Byrnes, executive managing partner of Mason Wells, a Milwaukee-based venture capital firm.
But much needs to be done to foster more change and capitalize on the results, they say. Thus the development of this year’s Wisconsin Entrepreneurs Conference, set for June 3-4 at the Hyatt Regency in Milwaukee.
Efforts to change the culture are coming from both the private and the public sectors, noted Byrnes and Cory Nettles, the new secretary of the state Department of Commerce.
Nettles said the state would create an Office of Entrepreneurship to support development of cutting edge businesses, and would marshal its forces to support the financing of new businesses.
"We need to rethink the way we allocate resources," Nettles said at a recent press conference outlining the upcoming Entrepreneurs Conference. "There are things we can do to make lenders and investors more comfortable with risk."
Wisconsin ranks poorly when it comes to new business; it’s 47th in new-business formation and 36th in venture capital investment, according to Wisconsin Technology Council reports.
Those numbers are indicative of a risk-averse business climate in Wisconsin that must be changed, Nettles said. "We want to do everything we can to change that culture," he said.
The elements of change are in place, Byrnes said, noting that Wisconsin produces as many patents per capita as other parts of the country which are more identified with entrepreneurialism. "But we don’t turn those patents and ideas into businesses," he added. Thus, the state loses out on wealth-creation that such transfers foster, he said.
Byrnes, who has been in the venture capital arena for more than 25 years, also said Wisconsin needs to develop a deeper admiration for entrepreneurship and business in general. "We have a service industry mentality; here in Wisconsin we say, ‘Mothers don’t let your babies grow up to be businessmen,’" he said.
The Entrepreneurs Conference will take a new approach.
In the past, entrepreneurs made lengthy presentations on their ideas at entrepreneurial conferences. This year, it will be the venture capitalists who will make the presentations, telling the would-be entrepreneurs what it would take to get financing from them.
"We thought we’d turn the tables and put the focus where it ought to be," Byrnes said. "The key resource isn’t capital – it’s people."
Nettles said the conference "will help entrepreneurs find the strategies, tactics and tools to turn their ideas and innovations into thriving new businesses."
The conference will kick off a year-long focus on entrepreneurship, including the first Governor’s Wisconsin Business Plan Contest and the first Wisconsin Visionary Awards. It will also mark the first public appearance in Wisconsin of representatives of Frazier Technology Ventures, the Seattle-based firm that will manage about $60 million in venture capital for the State of Wisconsin Investment Board.
Entry of Frazier into Wisconsin is one of the signs Byrnes cited in noting the changing entreprenuerial culture in the state. By the end of this summer, Wisconsin will have four venture capital groups operating here.
Byrnes said he is also witnessing a return of creativity in Wisconsin.
And he says many of the components of the economy of the future are in place in Wisconsin, including high-technology and biomedical infrastructures.
"We already have a leadership position; let’s take advantage of it," he implored.
For the business plan contest, the group hopes to raise "a couple hundred thousand dollars," Byrnes said. Prizes would be awarded in phases as businesses progress in their plans.
The Wisconsin Technology Council and its subsidiary, the Wisconsin Innovation Network-Milwaukee, are organizing the June 3-4 conference.

More information on the conference can be found at www.winfoundation.org.

May 16, 2003 small Business Times, Milwaukee

East Troy manufacturer moving to Oklahoma
Owners cite incentives, proximity to clients

By Charles Rathmann, of SBT

Custom Mechanical Equipment LLC plans to move from its East Troy site to Ponca City, Okla., this summer.
The company manufactures chillers for HVAC systems, mostly as replacements for equipment in existing buildings. The chillers are sold through contractors in the United States and Canada and go into schools, hospitals and other large facilities.
When CME moves to Oklahoma, about six employees will move southwest with the firm. The other 20 or so employees will be on their own.
"We are working overtime every day," CME president Dick Peitz said. "Unfortunately, we are not having to work Saturdays just yet, but we are quite busy."
The slower construction economy actually helps CME’s business, according to Peitz, as aging plants need replacement mechanicals.
"Replacement actually helps our business," Peitz said. "We do new buildings, but not as many as we do replacements. It is probably 80-20."
The company is relocating for a variety of reasons. According to Peitz, much of the company’s work is shipped to the Southwest, and it makes sense to move closer to the firm’s client base.

Incentives to move
In addition, the people at the Ponca City Area Chamber of Commerce (PCACC) made the decision to move easier, he said.
"They have many different things – tax advantages for a period of years," Peitz said. "They would give six acres of land to build a building on and pay for training of the people – to a certain amount of income – for five years."
According to Tim Burg, PCACC assistant director of economic development, local and state initiatives were leveraged to create an attractive package for the defecting Wisconsin manufacturer.
"The State of Oklahoma is very aggressive," Burg said. "They offer a five-year hiatus on personal property, equipment and real estate taxes for manufacturers. And the state offers tax credits based on what the manufacturer pays out in payroll. They offer a 4-5% rebate if they bring their company here and pay more than $2.5 million in payroll a year. But there is another program, the Small Employer Jobs Incentive Act, that CME will qualify for."
Ponca City also has funds from a .5% sales tax, which are earmarked for economic development and incentives.
The chamber and city have aggressively pursued business relocations since the oil industry in the region declined in the 1980s.
Big scores during the early days of Ponca City’s program to land relocations included poultry processor Thorn Apple Valley Inc., of Southfield, Mich., which employed 600, and Sykes Enterprises, a management solution company that moved a 600-job call center from Miami, Fla.

Recruitment
However, smaller firms such as CME are just as important as the large ones to the Oklahoma community, according to Burg.
"We did a project in Ponca City about two years ago," Peitz said. "The chamber of commerce started visiting with us then. We got a few calls from the lieutenant governor and several people from the State of Oklahoma came to visit with us about the move."
The firm’s new 54,000-square-foot building in Ponca City is under construction. Peitz said the company plans to move from its leased 16,000-square-foot facility in East Troy in the next three months.
"If I were a small business and facing the tax burdens I see in the state of Wisconsin …. The state does not seem very interested in influencing new industry," Peitz said. "If I were a small business owner who paid 100% of the cost of health care – well, this is a high health care area, too – I would be looking around to see what other people would do for me. It is a struggle to keep things going. One important thing for people to have is health care. That runs in the hundreds of thousands a year."
Peitz said he contacted the State of Wisconsin about incentives to stay.
"Unfortunately, we did talk to the State of Wisconsin, and they have nothing to offer," Peitz said. "They offered us an SBA (Small Business Administration) loan, which we don’t need. There are a lot of other states who have some pretty good offerings for moving."
However, Wisconsin Department of Commerce (DOC) spokesman Tony Hozeny said no one from CME ever contacted his agency.
"CME never contacted this department," Hozeny said. "They never approached us about this and asked us about any incentive."
Hozeny stressed that all of the incentives offered up by the State of Oklahoma and Ponca City are available here in Wisconsin – including free land.
"You couldn’t say free land is available in every part of the state," Hozeny said. "If you are a community and you think that is an incentive you need, you are going to use it. … You are probably not going to find free land in Pleasant Prairie or somewhere along the border, but as you look toward the center of the state, you are probably going to find it."
Hozeny stressed that non-policy factors are probably more important to CME in its decision than anything the state or local government could do.
"The fact that most of their customers are in the Southwest, to me, that sounds more like a reason for moving," Hozeny said.

May 16, 2003 Small Business Times, Milwaukee

Condo developer says partnerships crucial for development

By Steve Jagler, of SBT

The condo king of downtown Milwaukee is on the verge of expanding his empire.
Barry Mandel, president of Mandel Group Inc., has plans to develop more than 1,000 new upscale condominiums or apartments downtown with a total value of more than $300 over the next five to seven years.
"It’s a big pipeline," Mandel said. "The market is softening, and it’s going to take developments that are the very best at the very best locations that will be successful. We will phase them in as appropriate."
Mandel’s "pipeline" of new condominium and apartment projects includes:
— 560 apartments and condominiums, with a total value of $125 million, at the former Pfister & Vogel tannery in the 1500 block of North Water Street;
— 50 luxury condominiums, with a total value $65 million, at the University Club Tower along North Prospect Avenue in the parking lot of the University Club. The condo units in the 25-story lakefront tower are being sold for $700,000 to $2.5 million each — the priciest condos in Wisconsin. Mandel says he has commitments for about 25 of the units. His partners in the project include Blaine Rieke, Chris Smocke and Peter Mahler;
— 108 condominiums and 40,000 square feet of office space, with a total value of $30 million, at the Marine Terminal building, formerly the Stearns Co. building, 120 N. Broadway in the Historic Third Ward. The condos will be of various sizes and range in price from $250,000 to $450,000, Mandel said.
— 50 condominiums and 138 apartments, with a total value of $36 million, at the Gas Light Lofts project, 136 N. Milwaukee St., in the Third Ward.
— 120 condominiums, apartments or retirement housing units, with a total value of $30 million, at the corner of Prospect and Ogden avenues on Milwaukee’s east side.
— 60 condominiums, with a total value of $20 million, in the RiverCrest development at 2800 N. Commerce St. just north of downtown.
In addition, Mandel is looking west, with the following developments in Brookfield: the Norhardt Crossing Condominiums, with 48 new units and a total value of $20 million at 1861 Norhardt Dr.; the Georgetown Square Apartments, with 145 luxury apartments and a total value of $18 million at 16400 W. Wisconsin Ave.; and the Georgetown Loft Condominiums, with 70 luxury loft units and a total value of $17.5 million at 16300 W. Wisconsin Ave.
Mandel acknowledged that some people question whether there is enough affluent demand to support his upscale condominium developments in downtown Milwaukee. The market will prove to be the determining factor, he said.
The tenants in his condos are a mix of empty-nesters, aging baby boomers, "Gen-Xers" who value diversity and young people from "Gen-Y" who are the well-heeled children of baby boomers, Mandel said.
As the condos are built and occupied, downtown Milwaukee will see a surge of retail development over time to accommodate the expanding affluent population, Mandel said.
"I think there will undoubtedly be more retail. The market will dictate that there will be more retail," he said.
Pointing to his previous successes with the Library Hill and East Pointe developments in downtown Milwaukee, which were made possible by partnerships between the public and private sectors, Mandel said joint ventures such as tax incremental financing (TIF) districts work for the common good of the community.
"I think the TIF is one of the most important tools for redevelopment," Mandel said. "As the public sector becomes more confident in the TIF as a redevelopment tool, there is a greater willingness to move forward with TIFs, and communities are benefiting.
"The job of the city is to provide for the infrastructure. The public sector gets paid back in real estate taxes over time," Mandel said.
New public-private partnerships will be needed downtown to help create affordable housing developments that are in high demand, but are not very profitable for developers, Mandel said.

May 16, 2003 Small Business Times, Milwaukee

Strong plans expansion of headquarters
Expanded TIF district to spark $150 million in development

By Steve Jagler, of SBT

Strong Financial Corp. plans to expand its plush headquarters and add up to $150 million in new development at its Heritage Reserve complex in Menomonee Falls.
The ambitious new development, spread across 120 acres, will include a hotel or conference center, a medical service building, upscale retail, a bank, a senior housing complex, several more office buildings and upscale apartments and condominiums.
The new projects will be linked by a series of streetscaping improvements, ponds and walkways along Good Hope Road and Appleton Avenue.
Although the financial services industry has been trying to weather three consecutive years of a declining stock market, Strong eventually will need to expand its headquarters to meet future demands, according to Bruce Behling, senior vice president of Strong Capital Management.
"If our assets grow, and the lines of services expand, we’ll need to expand to the north, eventually," Behling said. "We’ll hit one of those growth periods again in the future, and then we’ll struggle like hell to build another building."
Strong has grown from six employees when it was founded in 1981 to 1,350 today, Behling said.
A developers agreement was finalized in March to expand the existing tax incremental financing (TIF) district at the Heritage Reserve site by 120 acres, clearing the way for a host of new projects, including:
— $60 million in development on 32 acres in a parcel north of the Strong headquarters and south of North Hills Country Club. The site could be the home of an expanded Strong headquarters or could be the home of another company’s corporate headquarters, Behling said.
— $40 million in development on 30 acres in a parcel south of Good Hope Road, west of 124th Street and east of Appleton Avenue. The site will include a hotel or a conference center and more office buildings, Behling said.
— $20 million in development on 30 acres in a parcel north of Good Hope Road, west of Appleton Avenue and south of North Hills Country Club. The site will be a mixed-use development that will include some upscale condominiums, some upscale retail and some commercial development. The possibilities include restaurants, a grocery store, a dry cleaning store, a bookstore and a bank, Behling said.
— $30 million in development on 38 acres in a parcel south of Good Hope and west of Appleton Avenue. The site will include a senior housing complex, some office buildings and a medical service center, Behling said.
In recent years, Strong has been acquiring the land surrounding its headquarters to preserve the value of its original investment, according to Behling.
The new development at Heritage Reserve will receive another $12 million in TIF funding over 10 years for infrastructure to accommodate the new projects, Behling said.
"We hope that we can liquidate this (TIF financing) by 2112," Behling said. "We could have 10,000 jobs out here when it’s all said and done."
With the new TIF agreement in place, the infrastructure improvements to Good Hope Road and Appleton Avenue near U.S. Highway 45 will begin with $4.8 million in work this year, according to Steve Holzhauer, a principal at Eppstein Uhen Architects, which has been hired to design uniform streetscaping at the site.
"There will be a real visible corridor, with improvements to create a uniform look and feel, with trees, pedestrian paths, berms, unified landscaping, unified lighting, ponds and walkways," Holzhauer said. "There are doctor groups interested in developing possibly a women’s health center or possibly something related to the senior housing development that will go there. We’re looking at condos, retail, an upscale grocery store, and a hotel still makes a lot of sense there."
A second dedicated electrical supply line will be extended to the Heritage Reserve site to minimize any power interruptions in the complex, Holzhauer said.
The partners in the extended TIF district are the Village of Menomonee Falls, the Menomonee Falls School District, Waukesha County and the Waukesha County Technical College District.
Strong bought the site of its current headquarters in 1986 and moved out of its downtown Milwaukee site at 815 E. Mason St. to the wooded, rolling prairie near Highway 45 a year later.
"We could not find suitable rental space in existing buildings we could buy in downtown Milwaukee that met our criteria, which included flexibility, ease of travel, efficiency and technology," Behling said. "We were trying to recruit people from all over the world. We have found this area to help us tremendously in recruiting and retention."
Shortly after moving to Menomonee Falls, the company, in the midst of a booming economy, began acquiring adjacent land.
"The next thing we knew, there’s a piece of land for sale next to us. They were going to put in a Jiffy Lube or something. We started accumulating the land around us, almost in a defensive stance. We set out to create the highest-quality office park," Behling said.
That office park became the Woodland Prime development in Heritage Reserve.
Heritage Reserve would not have been developed without the support and vision of former Menomonee Falls Mayor Joseph Greco, Behling said.
Greco played an instrumental role in establishing the original TIF district that paid for the $5 million in infrastructure needed to develop the land near Good Hope Road, Behling said. That TIF funding will be repaid by 2006, Behling said.
When the extended TIF district is repaid, the prime real estate developments will add substantially to the property tax base of the village, Behling said.
"Joe Greco — all of this could not have happened without him. You’ve got to have strong leadership and municipal leaders have to share the vision," Behling said. "The partnership we entered into made a lot of sense for the village of Menomonee Falls."
The project also received $20 million in assistance in road development from federal, state and local funds that were guaranteed by the private sector.
The Heritage Reserve development stands as the ultimate example of a productive partnership between the private and public sectors, Behling said.
"We ran the numbers, and we couldn’t afford to build the infrastructure to develop all of the land we had acquired," Behling said. "Good Hope Road needed to be improved. It wasn’t safe, and it implied an image that you were leaving civilization.
"We could not have created this ‘Field of Dreams’ without the help of this public/private partnership," Behling said. "We think we’ve got a model now that can be used by others, a cooperation between public and private partners and a cooperation between different municipalities."

May 16, 2003 Small Business Times, Milwaukee

SBA loans
The U.S. Small Business Administration approved the following loan guarantees during April:
Advanced Orthodontics, N64 W24050 Main St., Sussex 53089, $150,000, Waukesha State Bank;
Anchor Ventures, 5010 W. Vliet St., Milwaukee 53208, $172,000, First State Bank of Round Lake;
Bella Lawns, 8655 N. 43rd St., Brown Deer 53209, $494,460, Legacy Bank;
Beres, 1720 Hwy. 164, Waukesha 53188, $681,000, Wisconsin Business Development Finance Corp.
The Best Fireplace Co., 9840 S. 27th St., Oak Creek 53154, $348,500, US Bank;
CI Digital Wide Graphics, location to be determined, Kenosha 53144, $250,000, Bank of Kenosha;
Client Tele, 12725 W. Cleveland Ave., New Berlin 53151, $75,000, St. Francis Bank;
Cousins Subs, 1001 N. Old World Third St., Milwaukee 53233, $210,000, M&I Marshall & Ilsley Bank;
Crescent City Beignets, 741 N. Milwaukee St., Milwaukee 53202, $276,800, Wells Fargo Bank;
Dairy Queen, 245 E. Hampton Ave., Whitefish Bay 53217, $150,000, North Shore Bank, $25,000, M&I Marshall & Ilsley Bank; and $132,000, M&I Marshall & Ilsley Bank;
Deutsch & Sons Co., 2172 S. 43rd St., Milwaukee 53219,$150,000, Investors Bank;
Dollar Shop, highways 120 and 12, Lake Geneva 53147, $94,500, M&I Marshall & Ilsley Bank;
Elliott Vision Center, 5630 Washington Ave., Racine 53406, $250,000, Community State Bank;
Express ATM, 1609 N. Prospect Ave., Milwaukee 53202, $75,000, M&I Marshall & Ilsley Bank;
Fast Cat Trucking, 3530 S. Sylvania Ave., Sturtevant 53177, $47,600, M&I Marshall & Ilsley Bank;
The Gotham Grill, 600 E. Ogden Ave., Milwaukee 53202, $385,000, Wells Fargo Bank;
Greg Markim Inc., 830 N. 109th St., Wauwatosa 53226, $50,000, M&I Marshall & Ilsley Bank;
Harwood Creative, 216 N. Water St., Milwaukee 53202, $50,500, First Bank Financial Centre;
Industrial Cooling Systems, 4825 N. 32nd St., Milwaukee 53209, $100,000, M&I Marshall & Ilsley Bank;
Inn Between Bar & Restaurant, 1520 and 1522 Beckman Dr., Delavan 53115, $605,000, M&I Marshall & Ilsley Bank;
Inspired Media, 2821 N. 4th St., Milwaukee 53212, $10,000, US Bank;
I&Z Properties, 922 N. 8th St., Sheboygan 53083, $920,000, Community Bank & Trust;
J&B Express, 2738 S. 31st St., Milwaukee 53234, $50,000, St. Francis Capital Corp.;
Jayp, 9025 W. Appleton Ave., Milwaukee 53212, $765,000, Community Bank & Trust;
Kick It Soccer Shop, 406 Falls Rd., Grafton 53024, $40,000, Community Bank of Grafton;
Koconis Industries, 12600 W. Burleigh Rd., Brookfield 53005, $317,000, Wisconsin Business Development Finance Corp.
Level-Headed Carpentry, 1000 E. Stonegate Dr., Oak Creek 53154, $65,700, Bank One;
Mark David’s Bakery and Café, 619 Genesee St., Delafield 53018, $150,000, Delafield State Bank;
Moxy, 2219 N. Farwell Ave., Milwaukee 53202, $25,000, US Bank;
The Napa Vineyard, 259 Broad St., Lake Geneva 53147, $25,000, M&I Marshall & Ilsley Bank;
Quality Inn & Suites Waukesha, 2417 W. Bluemound Rd., Waukesha 53186, $71,000, Wisconsin Business Development Finance Corp.;
Silver Spring House, 6655 N. Green Bay Rd., Glendale 53209, $500,000, US Bank;
Signature Ceramics, 6596 Lakeside Rd., Lake Geneva 53190, $15,000, First Banking Center;
South Star, 4011 W. Capitol Dr., Milwaukee 53216, $50,000, M&I Marshall & Ilsley Bank;
Superior New Fashions, 1926 Superior Ave., Sheboygan 53081, $50,000, Community Bank & Trust;
Tek News Agency, 2517 S. 94th St., Milwaukee 53227, $25,000, Capital One;
US Biologies, 170 Progress Dr., West Bend 53095, $275,000, West Bend Savings Bank;
Village Auto Repair, 7061 Main St., Merton 53056, $228,000, Associated Bank;
Weld-Fab Manufacturing, 709 W. Wisconsin St., Hartford 53027, $50,000, Bank One;
Webley Chiropractic Clinic, 181 Commerce St., Burlington 53105, $236,000, Community State Bank;
Wiltneben Auto Service, 2125 Maryland Ave., Sheboygan 53081, $9,200, Community Bank & Trust;
Wolf Pack Adventures, 607 Goldfinch Ln., Howards Grove 53083, $149,000, Community Bank & Trust.
May 16, 2003 Small Business Times, Milwaukee

Positive development
Maybe appreciating what already works in your company is a way to grow in these uncertain times

By Steve McCombs, for SBT

Throughout the last six decades the focus on most management improvement systems promulgated by business authors, consultants and managers themselves has been on fixing problems in organizations in order to improve them.
Even well respected management gurus such as Tom Peters have been quoted as saying "If it ain’t broke, you ain’t looked!
Could problem-solving indeed be the problem?
Maybe Appreciative Inquiry (AI) could be just the push your company needs to help you get out of the doldrums created by the state of the economy. David Cooperrider, professor of organizational behavior at Case Western Reserve University who originated this technique, says that problem-solving always asks people to look backward at yesterday’s failures and their causes, and rarely results in a new vision.
That’s not to say that problem-solving is useless. On the contrary, when used properly it can improve your organization’s performance and even prevent disaster.
Seat belts, air bags and tamper-proof packaging are among the best examples I can think of that have improved our lives by solving problems.
To reap the benefits of AI, train your employees to look at what is, and has been working well in your organization, and then discover ways to apply those concepts to improve your performance in a way that will get your customers’ attention.
Cooperrider calls this the "4-D" cycle of appreciative inquiry. Here is how you might approach it:
— Discovery: Gather your workforce into groups of no more than seven and facilitate a discussion about experiences that made them feel like the company was really succeeding.
Encourage all to share an anecdote or tell a story about and incident or a time when they felt they and the company were at their best. Then work together to create a new one to five-year vision based on those successes.
— Dreaming: Ask the "miracle question." Ask your employees to imagine waking up tomorrow and your company was exactly the way they would like it to be concerning the four main areas of your business: management, operations, sales and finance.
Ask them what they see and how they know it is different. Put this all together and talk through a way that these dreams connect to the most pertinent of the visions.
— Design: Get your employees to now talk about how the organization will truly look based on this combination of visions and what its driving values and principles would be.
— Destiny: Ask your employees "How do we move forward to create this new reality for our company? What do you see as your role?"
In other words, once you have brought your employees this far, the process may take on a life of its own.
Be sure to empower your employees by letting them know what their limits are in terms of time, money, people, and equipment so that they can take the initiative without having to ask for approval at every turn.
What I believe makes this process so powerful is that it follows the human being’s natural thought process, that is: to focus on the positive.
The way I like to illustrate that point in my talks on positive employee discipline is to tell the audience, "Don’t think about a yellow horse!" Then I immediately ask them what is in their heads. With out exception the response is "a yellow horse."
Why? Because, we are programmed to think only in positive terms.
That’s why telling people what not to do can, in many cases, be counter-productive.
Just as focusing on what kinds of behaviors and skills you want your employees to use is more productive than a list of "don’ts," AI focuses on a positive vision for the organization rather than listing all the things that are wrong and must be fixed, which can, in and of itself, create a climate of negativity and blame-placing.
Even though these times seem uncertain and not conducive to growth, it just might be a good idea for you and your employees to rediscover what made you great in the first place and then look for ways to recreate the conditions that supported that success. What we all need is way to get off the dime and differentiate our service or product in a way that will show our prospects and customers how we can improve their condition.

Steve McCombs, consultant, author and speaker, is president of Beyond Performance, a management and performance consulting practice in Milton. He has more than 20 years experience in quality assurance, management consulting and employee development. He can be reached at 608-868-4565 or stevemccombs@netscape.net.

May 16, 2003 Small Business Times, Milwaukee