Retailers along South 76th Street are bracing for slow sales as traffic will be narrowed to one lane in each direction when the congested road is reconstructed this summer.
The $5.5 million reconstruction of 76th Street, also known as Highway U, will be paid for jointly by Milwaukee County, the Village of Greendale and the City of Greenfield.
The project will extend from Grange Avenue on the south to 1,000 feet north of Coldspring Road, and along Layton Avenue to the bridge over Forest Home Avenue.
Traffic will be reduced to one lane going each way during the reconstruction and, according to county and municipal officials, the contract with the construction company that submits the winning bid will require project completion before the holiday shopping season kicks off at Thanksgiving.
The reconstructed street will be easier to navigate — and after a second phase of construction in 2004, it also will be more attractive, transportation officials say.
According to Fred Abadi, director of the county’s Transportation Division, traffic navigation will be improved with upgrades in the pavement and signage, but subtle improvements will also be made to the design of 76th Street.
"People will see some improvement in traffic operations because we are extending many of the left-turn lanes," Abadi said.
A second phase of construction will beautify the median strip, according to Abadi.
"In the second phase, we will do the landscaping, decorative street lighting and stamped concrete," Abadi said, describing stamped concrete as concrete colored and stamped to resemble brick.
The brick-like surface will be applied to the two feet just inside the median.
"It looks nice – and when you come in winter and store snow over that, it does not damage the landscaping," Abadi said. "You wind up saving that first two or three feet of grass."
In the meantime, maintaining a decent flow of shoppers amid the dust and orange barrels will be a challenge this summer, according to affected business people.
"We are working on finalizing some plans," said Bud Schneider, manager of Southridge Mall. "I met with our marketing director. We are going to get together with our department stores by mid-April and decide on some strategies."
The owner of one business located in the eye of the hurricane — Cat Morrow of Robert F. Haack Diamonds — plans to take advantage of the construction dust to make some improvements of her building at the corner of Layton Avenue and 76th Street.
Morrow plans to acquire 4,400 square feet of property from a Midas Muffler location next to her location. The property will be paved for additional parking.
"We will do some remodeling inside, and we are going to be upgrading our property on the outside at the same time," Morrow said. "There will be new signage, a new retaining wall, new lighting and landscaping."
While Morrow said some sales during the construction process could still be successful, she fears overall sales volumes will decline during the project. Morrow indicated her business is less dependent on the holiday shopping season than some others in the 76th Street corridor are.
"We are the type of jeweler that does a big bridal business," Morrow said. "We are pretty steady all year round. In May, we have a customer appreciation day, and in August, an annual birthday sale. I expect to hold these events as we normally would."
However, Morrow still has concerns.
"I think we are getting people in from our advertising, word of mouth," Morrow said. "People will still drive to find what they want, but if word gets around that the area is congested, that might be a deterrent."
Once the dust settles, Morrow said, the changes will be positive for businesses in the corridor.
"What they are trying to do to revitalize the area – the street renovation, plus what the city is going to do with the lighting and the median strips – will in the long term be excellent for business. Hopefully it will attract an anchor tenant to the Southridge Mall, which we desperately need."
Milwaukee County Executive Scott Walker shares Morrow’s optimism about conditions in the 76th Street corridor following construction.
"It is as much an economic development issue as a transportation issue," Walker said. "We want to send a message that new things are happening. It is not just for the mall — it is for all the properties all the way north to Greenfield."
The cost of the first phase of the project, which includes reconstruction of 2.16 miles of roadway, will be $3.1 million, according to Abadi. Of that, Milwaukee County will foot the bill for $2.8 million, the City of Greenfield will cover $185,000 and the Village of Greenfield will pay $60,000.
Abadi said the tab for the second phase would come to $2.4 million. The county will pay for $300,000 of the work, the City of Greenfield will pay $1.5 million and the Village of Greendale will pay $550,000.

April 4, 2003 Small Business Times, Milwaukee

For decades, the privately held land surrounding the Port of Milwaukee has resembled an industrial war zone that time has forgotten, a maze of discarded refuse, tangled barbed wire fence, rusty barrels, coal piles and abandoned, crumbling factories and warehouses.
Amid the debris, the grit and the grime, real estate developers such as Tom Short and Jeff Klement are standing tall and asking a rather conceptual question: Can the land around the Port of Milwaukee be developed into a bustling commercial center, replete with hotels, restaurants, shops and office buildings?
To be sure, naysayers would have a long list of reasons for negative responses to that question, ranging from environmental contamination to the lack of a vision for the port by the City of Milwaukee.
No matter.
Short has purchased the former Milwaukee Solvay Coke & Gas Co. site at 311 E. Greenfield Ave., where he is proposing a $1.5 billion development that would include 14 new office towers. (See accompanying article.)
In addition, Short and Klement jointly purchased a 2.6-acre parcel at 435 S. Water St. in February and hope that one day they will be able to construct a hotel at the site.
The former National Warehouse Corp. site south of Milwaukee’s Historic Third Ward is directly west of the port, where the Milwaukee and Kinnickinnic rivers meet.
Klement and Short are tearing down the industrial buildings at the Water Street site.
And they’re dreaming of the possibilities.
“If this site were to be developed as a hotel, it would change the complexion of Milwaukee,” said Klement, a member of the family that operates Klement Sausage Co. in Milwaukee and the founder of Franklin-based Icon Development Corp. “The port is a natural resource. It’s almost tragic that it hasn’t been developed.”
Klement envisions a hotel, where visitors could look out at the port and watch ships and barges depart and arrive from the Great Lakes. Boaters could make use of a marina that could be constructed at the hotel.
Klement’s Icon Development would develop the site.
“I think this area is probably the next frontier in the city of Milwaukee, because of its proximity to the water,” said Michael Krill, development director and general counsel for Icon. “The lake and the rivers are underused resources. It offers an incredible opportunity to the City of Milwaukee, as far as expanding the downtown.”
The developers say the City of Milwaukee should take its cue from other Great Lakes ports, such as Cleveland, Ohio, which have maximized their waterfront resources with mixed real estate uses that coexist with functioning ports.
“If you go down to the port now, it’s crap. That’s the word for it,” Klement said. “I think they can work together, and they can complement each other. There are areas down there that are just sitting there.”
Klement and Short aren’t alone with their visions of the possibilities. Bill Hansen, president of the Hansen Storage Co., anticipates selling his firm’s warehouse at 541 E. Erie St. in the near future to make better use of the riverfront property.
“Where I couldn’t see it happening before, I do now. We know we’re sitting on something that could be significant in the future,” Hansen said.
Hansen also envisions selling his company’s warehouses at 412 S. Water St., across the street from the site owned by Klement and Short, for redevelopment as condominiums. He refers to the area as the “Fifth Ward,” and is discussing the notions of creating a business improvement district (BID) and a tax incremental financing (TIF) district to spur development near the port. The city refers to the area as the Harbor View neighborhood.
Hansen is hoping the momentum of development in the Third Ward extends into the land surrounding the Port of Milwaukee. After all, few people could have envisioned the development in the Third Ward 15 years ago, Hansen said.
However, before the dreams of a viable commercial district coexisting with a functioning port could be realized, the city would need to create its vision of the port.
Julie Penman, commissioner of the Department of City Development, agrees that the land surrounding the port has been underutilized, but the city has its hands full with the Menomonee River Valley redevelopment plan and the rebirth of the land beneath the downtown Park East Freeway, which is being torn down.
From the city’s standpoint, Penman said, the Port of Milwaukee will have to wait its turn.
“It’s a ways off yet,” Penman said. “We would need to put together a master plan that looks out 20 years into the future. We recognize that long-term, there are some parcels we want to look at. It’s on our list of projects. But we don’t want to do it piecemeal.”
The city is not likely to compile such a master plan for the port for at least two years, Penman said.
That’s not soon enough for those who say the redevelopment of the port is already long overdue.
South Town Points Inc., a nonprofit organization established by the Hispanic Chamber of Commerce of Wisconsin, plans to establish a BID to promote economic development on the city’s south side.
Ralph Fleege, president of South Town Points, said the Port of Milwaukee is very much on his organization’s radar screen.
Ted Hutton, a retired Allen Bradley Co. executive who is active with South Town Points, said a redeveloped port would be a catalyst for tourism in Milwaukee.
The port as it exists now is a disgrace for the city, Hutton said.
“When you take the Amtrak into Milwaukee from Chicago, you say, ‘My god, what kind of city is this?’ That’s the first impression of Milwaukee,” Hutton said.
Hutton recruited Brian Vandewalle of Vandewalle & Associates, Madison, to create a schematic of what a revitalized Port of Milwaukee could become.
Vandewalle has a track record for converting dilapidated industrial property into thriving waterfront commercial centers.
In the 1990s, the city of Moline, Ill., embarked on a mission to transform its downtown along the Mississippi River. The site of the worldwide headquarters of John Deere & Co., Moline’s riverfront was an industrial wasteland, much like the Port of Milwaukee.
By the end of the decade, Vandewalle had successfully transformed the site into a bustling commercial district, including The Mark of the Quad Cities Center, the John Deere Pavilion and Store, a Radisson Hotel, two new Class A office buildings, a new transit center, a downtown riverwalk and other commercial and retail venues.
Such a renaissance cannot happen in Milwaukee without a coordinated effort by the city, Klement said.
“It’s going to take time. It’s going to take money. It’s going to take vision,” Klement said.
Of course, even if the city develops that vision, it does not have the dollars to make it happen.
That could ultimately be the point in which a player such as the Forest County Potawatomi Community enters the picture. Jeff Crawford, Potawatomi attorney general, told Small Business Times that Wisconsin’s Native American tribes are poised to invest more than $600 million in economic development in the state. The Potawatomi is considering its options for private development throughout the Milwaukee area, including the port, Crawford said.
Redevelopment of the port would be a boon for Milwaukee, according to Rosemary Wakeman, an associate professor of urban studies and an author at Fordham University in New York.
Proven concept
“I very much believe the port should be open to the public. The ports that have been the most successful are the ones that have opened up their public spaces,” said Wakeman, who has studied successful ports throughout the world. “Office buildings, conference centers, restaurants – they are compatible, but they need to be very unique to the waterfront. When you do that, it’s extraordinary. You’ve got to find the unique qualities of Milwaukee’s lakefront and use that as the theme of the design.
“You just can’t be competitive as a port just taking boxes of shoes off of ships,” Wakeman said. “There’s a real education process that’s needed in a community.”
Ald. Suzanne Breier, whose district includes the Bay View neighborhood, said the private sector is anxious to redevelop the real estate around the port, much like developers took the lead to redevelop the Third Ward over the past decade.
“We’re going to have to get a master plan for the port, and I think we’re going to have to do it this year,” Breier said. “There’s just a whole new feeling for that area.”
Gateway to Bay View
Bay View also should receive a boost when Catherine Rohde, president and owner of Oasis Coffee & Vending Services, redevelops the former Reimers Photo Graphics site at 300 E. Bay St. near the corner of Kinnickinnic Avenue.
Rohde already has moved her business into the prime location from its previous home at 68th Street and Fairview Avenue.
Rohde has applied for a facade grant from the City of Milwaukee and plans to develop mixed uses, including office and retail, at the 10,000-square-foot site, according to leasing agent Bill Dixon of Dixon Commercial Real Estate Services.
The site had an assessed valuation of $289,000 in 2002, and Rohde plans to invest more than $60,000 for its initial facelift.
“This building is going to have a new face, a new look — big time,” Rohde said. “People are going to be impressed. Lots of windows, landscaping. I want it nice. We are the gateway of Bay View. I think Bay View has gotten a bad rap. Let’s start here and work our way up Kinnickinnic.”
April 4, 2003 Small Business Times, Milwaukee

Stephen Provancher has been promoted to the position of vice president at NAI MLG Commercial in Brookfield. Provancher joined NAI MLG Commercial in May of 2000 as a sales associate in the Industrial Group. Prior to joining NAI MLG Commercial, he spent more than 10 years in the commercial banking industry.

Shorewest Realtors has announced the appointments of two new assistant vice presidents and several new associate vice presidents. The Brookfield-based company’s new assistant vice presidents are: Deb Sloane, who is the sales director of the firm’s Waukesha office; and Jim Barth, who is the sales director of Shorewest’s Mequon office. Sloane joined Shorewest in 1988 and was then promoted to communications director and manager of the Menomonee Falls office. Barth began his real estate career in 1972 and was appointed sales manager at Shorewest in 1978. Shorewest’s new associate vice presidents are: Wendy Bruner, Susan Derby, Cheryl Gehringer, Karen Joost Henry, Laura Kruschka, Wendy Manzke, Richard Natrop, Rebecca Patnode, Ray Treinen, Cheryl Whettam and Heather Winser. Shorewest also promoted Marty Hersh to the position of assistant sales director in the company’s northwest Milwaukee office. He previously worked in the banking industry for nine years.
The Whyte Hirschboeck Dudek law firm has added five attorneys to its Milwaukee office. Karen Tidwall and Molly Zillig, formerly of Kravit, Goss, Hovel & Leitner, joined the Litigation and Transportation groups. Thomas J. Niemiec, Mark T. Garsombke and John D’Antico all joined the firm as associates. Tidwall graduated from Creighton University School of Law cum laude and earned her bachelor’s degree from the University of Nebraska at Omaha. Zillig graduated from Creighton University with her bachelor’s and law degrees. Niemiec was a shareholder with the firm of Bassford, Lockhart, Truesdell & Briggs in Minneapolis. He received his JD from the University of Detroit and his B.S. in business administration from Marquette University. Prior to joining WHD, Garsombke served as corporate counsel of Strong Funds. He received his JD from Regent University School of Law in Virginia and his BBA in finance and economics from UW-Milwaukee. He joins the Information Technology, Telecommunications and Intellectual Property groups at WHD. D’Antico, is a member of WHD’s Intellectual Property Group. He has degrees in electrical engineering (Marquette University, B.S., magna cum laude), business (University of Illinois, M.B.A., with honors), and law (University of Florida, JD with honors), and previously served as a nuclear propulsion officer in the U.S. Navy.
Lyle Fenske has joined design/build firm of La Macchia Group, Milwaukee. Prior to joining La Macchia Group, Fenske worked for M&I Bank, Quad Graphics and a private architectural firm.
Leslie Lynch has joined Precision Marketing Partners, Milwaukee, as a retirement plans sales manager for Mutual of Omaha’s defined contribution business. Lynch has more than 15 years of sales and human resource management experience. Prior to joining Precision Marketing, Lynch held several senior management positions at Strong Financial Corp., Menomonee Falls.
Glenn Gerschke has been promoted to division manager of the regional mall group at National Survey & Engineering, a division of R.A. Smith & Associates. Gerschke joined National Survey & Engineering in March 1998 as a project manager. In his new position, Gerschke oversees a staff of 16 engineers and technicians. Gerschke has more than 15 years of civil engineering experience. Gerschke holds professional engineer registrations in 14 states, including Wisconsin. He earned a bachelor of science degree in civil and environmental engineering from UW-Madison. Kerry Hardin has been promoted to project manager. Hardin has been employed with National Survey & Engineering since 1998 as a civil engineer. Hardin has a bachelor of science degree in civil engineering from Marquette University, Milwaukee. Paul McIlheran has been promoted to senior project engineer. He joined National Survey & Engineering in 2000 as a project engineer. He has seven years experience in sitework engineering with a specialty in stormwater management planning and design. McIlheran has bachelor of science degrees in industrial engineering from Marquette University and civil engineering from UW-Milwaukee.
Landmark Credit Union has promoted Jeff Knaub to branch manager of its New Berlin office. Knaub joined Landmark in November, 1997 as a consumer loan officer, having experience as a personal banker at an area bank. Landmark promoted Knaub to the position of management trainee in January, 1999 and then to assistant branch manager in August, 1999. He succeeds Rita Hanusa as branch manager of the New Berlin office. Hanusa retired after 14 years with Landmark. Knaub earned a bachelor of business administration in finance from UW-Milwaukee.
Edward Perlberg Jr. has joined R.A. Smith & Associates as a project manager in the visualization division. Perlberg is a recognized expert in the field of visualization. With more than 15 years of experience, he has been sought as a leading instructor and speaker for this emerging technology. He has provided animation capabilities to professional and collegiate sport teams including the Milwaukee Bucks, the Milwaukee Wave, the Milwaukee Admirals and the Marquette Golden Eagles. Perlberg was most recently employed with MasterGraphics, Waukesha, as a group manager and instructor. He is a graduate of the Milwaukee Area Technical College in the architectural technology program.
Steve Scott has been named program director of Smooth Jazz WJZI (93.3 FM). Scott joined Smooth Jazz WJZI in January of 2002, and immediately took on duties as the station’s music director and host of "Smooth Jazz Sunrise." He became interim program director in May of 2002. For the 12-year period prior to joining Smooth Jazz WJZI, Scott was with WKLH in Milwaukee.
Arlene Canning has joined HomeSale Realty as manager of the Oak Creek office. A 17-year realty veteran, she had been with Shorewest prior to joining HomeSale Realty. John Sedler, also a 17-year realty veteran, has joined HomeSale Realty as manager it its new Hales Corners office.
Michael Albiero has joined Versant marketing communications firm in Milwaukee as its creative director. He had been owner and creative director of Advertising Art & Design in West Bend. Versant has also hired Julie Stern as a media buyer. She is a Michigan State University graduate and previous worked at radio stations in Michigan, Nevada and Colorado. Carmen McKinley has joined the firm’s media department while Ben Hannemann has been promoted from account coordinator to account manager. McKinley, with 18 years of experience in media, previously worked for Direct Marketing Concepts. Hannemann, a UW-Madison graduate, has been with Versant three years.
Walter M. Bartelt has been named sales and marketing manager of the Industrial Group of Kracor Inc. in Milwaukee. Kracor has 31 years of sales and marketing experience in the plastics industry.
Wenda M. Roycraft has been promoted to the position of vice president at Wisconsin Business Bank. Roycraft is a a UW-Oshkosh graduate with a degree in finance and economics. Kevin R. Much has been promoted to the position of assistant vice president at the bank. With a degree in finance from UW-La Crosse, he has worked for other financial institutions.
John O’Brien has joined Cornerstone Consulting as sales and marketing manager. He has more than 25 years of experience.
Simon Mui has joined BankMutual as manager of its Southgate office at 3340 S. 27th St. in Milwaukee. Mui, who attended UW-Madison and Milwaukee Area Technical College, has been in banking four years.

Correction:
Educational information on two lawyers who have joined Weiss Berzowski Brady was incorrectly listed in the March 21 issue of SBT. The correct information follows: Anna M. Pepelnjak and Catherine A. La Fleur have joined the Milwaukee office of the law firm Weiss Berzowski Brady. Pepelnjak had joined the litigation practice group. La Fleur has joined both the litigation and condemnation practice groups. Pepelnjack is a graduate of Marquette University (B.A., 1975, magna cum laude J.D., 1978). La Fleur is a 1988 graduate of UW-Milwaukee (B.A., 1985) and Marquette University Law School (J.D., 1988).

April 4, 2003 Small Business Times, Milwaukee

Question: I’ve made efforts to create change and increase performance. Just about the time I get more involved and set specific goals, I can feel resistance.

Answer: In the last column, in the March 7 issue of SBT, the first four points of sales performance management were reviewed. Those points are: taking an inventory, creating a vision, reengineering the sales process and benchmarking performance indicators.
The remaining six points will take you from goals to outcomes and back again.

5. Set individual goals – This is the line in the sand for a no-excuses performance culture. Set mutually agreed upon "SMART" goals (specific, measurable, attainable, relevant and time-based) relative to the sales process and the individual’s vision, role, developmental level and strengths.
A no-excuses performance culture is about accountability. Start with smaller goals. Focus on reaching them as you foster a renewed belief in a new level of performance. You can always make them bigger.
Practice the no-excuses rule. If you say you’re going to do something or set a goal and don’t follow through, you’re only excuse to the other person or yourself should be to say "It just wasn’t a priority." Learn how to say no and make your "yes" count.

6. Agree on a management style – This is tricky. Much of the unproductive tension in relationships at work or at home is caused by communication styles, misunderstandings, pride, defensiveness and ego. Agreeing on a management style can be difficult if you don’t understand how you see each other. Have the courage to discover your strengths and weakness. You’ll find better ways to communicate, motivate and reduce misunderstandings. Annual 360-degree assessments can be a powerful tool.
Pay attention to developmental levels. When people are learning something new, adopting a more directive approach is usually more effective. As a skill or task is learned, people tend to respond better with a more supportive, less directive style. Then learn to let them fly. Let them run the show when accompanying them on a sales call. Bite your lip if you need to. They need to do it – to learn it. Debrief afterward.

7. Educate and train – Knowledge builds confidence and belief in one’s ability to make a difference. Provide product, market and competitive intelligence on an ongoing basis. Enlist the support of other sales reps, upper management, sales engineers, channel partners and anyone else in the know, including customers.
Doing is the common denominator for top-performing sales forces. Sales performance training focuses on the difference between knowing and doing – helping people do more of what works and less of what doesn’t.

8. Action – A goal without an action plan is a mirage in the desert. Do you have a plan for every day? A former boss of mine always would say, "Nothing happens until you’re on the phone or in front of someone who can buy. Set the goal, create the plan, understand the difference between urgent and important; then do it.

9. Monitor and measure – Are you in the field with sales reps on a regular basis? Do your sales reps have a system to monitor, measure and see their sales pipeline? Sales performance is measured by the ability to go from one step of the sales process to the next until the invoice is paid. Measure outcomes beyond just sales.
Break things down so you can measure the smaller steps in the sales process relative to the goals that have been set. Use ratios between important steps to determine what needs fixed. Give feedback in between the steps of the sales process.

10. Feedback and recognition – Give ongoing, objective feedback. Focus on behaviors and outcomes. Do more of what works and less of what doesn’t. Agree in advance on what will happen if minimum expectations are not met. This will help people feel listened to, understood and respected, while helping you to hold people accountable. There should be no surprises at appraisal time.
Recognize and reward desired behavior. Do you know what motivates your people? How do you know for sure? Have you asked? Have you tested it? Everyone is different. Some respond strongly to explicit motivation like awards. Others may respond better to implicit motivation like being reminded they are a valuable part of the team. How many times do you catch people doing something right?

Bruce Webster is the president of Business Development Partners, a Milwaukee-based sales training, executive search and performance management consulting firm. He is the author and presenter of StopSelling Sales Performance. He can be reached at 414-476-3161, e-mail bruce@stopselling.com.

April 4, 2003 Small Business Times, Milwaukee

Don’t wait for older workers to retire before you develop succession plans

Question: Here’s an issue we need to come to grips with — our key executives are approaching retirement. Additionally, as I look at our managerial team in general, I see more and more gray hair. What concerns me is that we’re not preparing for the exit of these key players. I’d like to see the company implement a formal succession plan. Any suggestions on how we should get started?

Answer: Succession planning is a crucial process for most organizations today. It is the process by which successors are identified for key posts and targeted career development activities are offered. While succession planning has always been a part of human resources programing, it has become increasingly relevant as organizations like yours confront the realities of an aging workforce.
Specifically, the Baby Boomers (i.e., individuals born between 1946 and 1964) are getting older and retirement time is just around the corner. There are major organizational implications in this. By definition, these are experienced individuals (they have been in the workforce for decades). Further, in many cases, they occupy important and strategic positions. So, when they leave, significant "know how" will leave, too.
It is also worth noting that demographic data indicates that there are fewer Generation X (i.e., those born between 1965 and 1981), or Generation Y (i.e., those born after 1982) employees to replace these aging Baby Boomers – the Baby Boomers are simply a larger age cohort. So, unless organizations prepare for it, when the Baby Boomers retire, the gaps may be formidable.
Cast against this backdrop, then, succession planning cannot be something that you are simply pondering or researching – it needs to be something you are actively practicing. Right now. Today.
You cannot afford to wait until tomorrow, because when tomorrow comes, somebody else will have retired and you may not have a ready replacement waiting in the wings.
Some benefits that organizations realize from implementing formal success plans include the following:
— Increased precision in employment selection and placement because of clearer targeting of organizational success factors.
— Comprehensive development of employees by offering systematic and structured developmental opportunities.
— Increased understanding of the skill sets of employees through the use of formal measurement systems.
— Fostering of a collaborative corporate culture based on the sharing of knowledge, insights, and experiences.

Typically, an effective succession planning process is comprised of the following ongoing activities:
Studying and documenting current positions and people – This step is absolutely foundational. The idea is to describe the activities that attached to each position in the organization (i.e., job analysis, role analysis, task analysis) and the characteristics necessary to carry them out (i.e., knowledge, skills, abilities, and personal attributes or behaviors). Some have compared this step to an audit. It is a valid comparison in that data are collected and studied so that gaps or surpluses can be identified.
Forecasting organizational trends – This involves looking forward and anticipating what the future holds. What products or services might be pursued (and eliminated)? What will be the implications of doing so in terms of the jobs the company offers and the people who will occupy them?
Developing a succession chart – In essence, this is analogous to what the Green Bay Packers do each year when they develop their depth chart. Brett Favre is the starting quarterback. Doug Pederson backs him up. Someone else is third string.
The same is done for each position on the team. This same approach is applicable to a business organization. Formally listing "who’s who" provides a structure for planning for the next aspect of succession planning, the creation of individual development plans.
Implementing individual development plans – Drawing upon the Packers example again, knowing that Doug Pederson backs up Brett Favre, the question becomes, "What does Doug need to know, be able to do, etc. to step in when called upon (i.e., when Brett retires)? Perhaps he needs some focused understudy time with Brett where Brett shares his perspectives, insights, best practices, etc.
Perhaps Doug will benefit from building his skills in the area of passing mechanics. And so on. In short, what needs to happen is the creation of a program of ongoing learning and development so that each player learns the "playbook" and builds skills so that he can become a player who makes increasingly responsible contributions.
Evaluating program effectiveness and making fine-tuning adjustments – It is important to note that succession planning is not a one-time activity. It is an ongoing effort because organizational members are perpetually coming and going.
The idea is to build a "system" which is dynamic and adapts and evolves to match changes in both the external and internal business environments. This means studying data gathered from the steps listed above and then making changes to ensure that the succession planning process remains on-target.

A couple of concluding thoughts. Historically, succession plans have been closely held, even secretive. Today, like other organizational processes, succession planning is becoming more open and free flowing. After all, if you are planning someone’s future, it makes sense to include him/her in that planning.
Additionally, if succession planning is well done it has the potential to shape the corporate culture. Think about it.
By following the steps outlined above, the company is, in essence, telling its employees, "You are important to us. We recognize you as a valuable asset. We want to help you achieve your potential. And, we want you to do that here, with us, rather than feel the need to leave us in order to move to the next level in your career."
Finally, succession planning reinforces the concept that employee development is an important duty for any manager within the organization. This message is consistent with the old adage about an effective manager being the one who works himself/herself out of a job.
By emphasizing employee development, the organization is clearly saying that one primary ingredient of the managerial success formula is to hire the best people and then develop them to the fullest.
By following the principles outlined in this article, succession planning can become an important part of the organization’s ongoing strategic agenda, rather than something that is done only when the boss retires.

Daniel Schroeder, Ph.D., of Organization Development Consultants Inc. (ODC) in Brookfield provides "HR Connection." Small Business Times readers who would like to see an issue addressed in a column can reach him at 262-827-1901, via fax at 262-827-8383, via e-mail at schroeder@odcons.com or via the Internet at www.odcons.com.

April 4, 2003 Small Business Times, Milwaukee

In his State of the Union address in January, President George W. Bush proposed two new savings accounts: lifetime savings accounts (LSAs) and retirement savings accounts (RSAs).
As of March, the president’s budget was still being debated by the U.S. Congress. While political commentators analyze the wisdom of the plan and the likelihood of passage, it is not too early to think about the impact of the proposals if they become law.
Here are some important points about each of the proposed savings accounts:
LSAs
— Each taxpayer could contribute $7,500 annually (the $7,500 would be indexed for inflation).
— There would be no income tax deduction for the contribution.
— There would be no age or income limitation on who is eligible.
— Contributions could be made even if the account holder has no earned income.
— Withdrawals could be made at any time for any purpose without payment of federal income tax.
RSAs
— The first three points above would also apply to RSAs.
— RSA contributions could not exceed earned income.
— Only withdrawals after age 58 or death or disability would be free of federal income tax.
Lobbyists representing life insurance companies have been working to change various provisions of the President’s budget bill, including RSAs, LSAs, and the proposed tax exemption for dividends. Why? Life insurance companies sell annuities. Most annuities are purchased with after-tax dollars.
When an annuity is paid out, distributions in excess of the contributions are subject to income tax. LSAs and PSAs would be tax-exempt, not tax-deferred. Assuming the same yield and the same expense ratio, the RSAs and LSAs would provide more value to the owner than an annuity, due to the tax exemption for the distributions.
LSAs and RSAs could also affect the tax-exempt municipal bond industry, as LSAs and PSAs would provide alternatives to a tax-exempt bond or bond fund.
LSAs and RSAs would offer single taxpayers the opportunity to save up to $15,000 annually, with all future growth tax-free. For married couples, the annual savings opportunity could equal $30,000.
The absence of any earnings requirement for the LSA would make this an opportunity for grandparents and family members to make gifts to young children.
Section 529 plans and other tax favored education accounts will still be available. The LSA would provide another option attractive to those who want to maximize investment control and flexibility on spending the distributions. Some commentators are concerned that the flexibility of the LSA would be too great. Instead of using LSAs to save for retirement, disability and education, taxpayers instead may use the account for short-term consumption.
The RSAs would consolidate retirement savings. Existing Roth IRAs would be unaffected, except for a name change. Traditional IRAs could be converted to RSAs (with payment of income tax). If the RSAs become law, unconverted traditional IRAs cannot receive any additional contributions, other than rollover contributions.
Until the legislation is finalized, it is too early to take specific action. If the RSAs and LSAs appear attractive to you, hold off on investments with back-end surrender charges that will make it difficult to use the funds for an LSA or RSA in the future.
If the proposals become law, then it will be time to do a specific analysis of the benefits of the RSAs and LSAs, compared with other options. Wait and make sure that Wisconsin adopts the federal changes.
Traditionally, Wisconsin, like most states, amends its laws to track changes to the Internal Revenue Code. This year might be different. Wisconsin has severe budget shortfalls. If significant cuts are made at the federal level, it’s not automatic that Wisconsin would adopt them.

Sally Merrell, a partner with Quarles & Brady in Milwaukee, is the immediate past chair of the Real Property, Probate and Trust Law Section of the State Bar of Wisconsin.

April 4, 2003 Small Business Times, Milwaukee

Small business owners beware. According to a recent report issued by the Association of Certified Fraud Examiners (ACFE), as many as one in 20 small businesses may be victimized by fraud.
In its 2002 Report to the Nation on Occupational Fraud and Abuse, the ACFE concluded that small businesses are the most vulnerable to occupational, or employee, fraud. In fact, businesses with fewer than 100 people are more likely to be subject to fraud than companies with more than 10,000 employees. And while the largest companies suffered losses of $97,000 on average, small businesses’ losses averaged $127,500.
Employee fraud is only one part of the problem, reports the Wisconsin Institute of CPAs. Small businesses need to be alert for customers and vendors who commit fraud, as well. Here are some of the ways CPAs say you can help protect your company’s assets from the unscrupulous.

Employee fraud
Scrutinize the hiring process. First and foremost, you must make every effort to hire the right employees. Conduct thorough background checks that verify past employment history, references, education and certifications, and the absence of a criminal record. This is particularly important if the employee will be handling inventory and cash.
Create a ‘no tolerance’ culture. The most proactive step you can take in preventing employee fraud is to develop a culture that emphasizes ethical business practices. Let employees know that you are committed to preventing fraud and have in place a written policy that informs employees of the consequences for unethical behavior. Be sure to distribute this policy to all employees.
Separate accounting duties. Small businesses are often vulnerable to fraud because they lack the accounting and management oversight found in larger firms. For example, in many small businesses one person is responsible for all accounting and bookkeeping transactions. Having the same person open mail, make deposits, pay invoices, reconcile bank accounts, and oversee petty cash creates an environment ripe for fraud.
Small business owners should consider having bank statements sent to their home where they can carefully examine them and look for large or unusual deposits or payments. Handing the open statements over to employees in charge makes it clear that they are being reviewed.
Keep in mind, too, that when it comes to check signing, it is wise to require more than one signature on large checks.

Customer fraud
Be alert for stolen credit cards. Purchases made with stolen credit cards are proliferating at an alarming pace. To help protect your business, insist that your employees keep the customer’s card in their possession until they have verified that the signature on the back of the card and on the sales receipt match. Employees should also be trained to look for suspicious behaviors that might point to credit card fraud. These include nervousness, attempts to rush the transaction through just before closing or making multiple purchases of identical expensive items, among others.
Verify Internet orders. If your business accepts online orders, you may want to look into a credit card fraud protection system. The Address Verification System (AVS), one of the most widely used, confirms that the billing address provided by the consumer matches the billing address that the credit card issuing bank has on file for that customer. You can obtain AVS from your merchant account provider. Also, you should be especially vigilant when you are asked to ship merchandise to an address that differs from the credit card billing address.

Vendor fraud, scams
Educate your staff. Businesses are frequently targeted by a number of scams, many of which have been going on for years. The best prevention is to educate your employees about the most common types of scams against small businesses and to limit your purchasing to people you know and trust.
Do your homework on suppliers. If you are considering a new supplier, check the company’s reputation with the Better Business Bureau. Paper pirates, as they are sometimes called by law enforcement officials, often telephone or visit small businesses to sell copier paper and office supplies that are overpriced and ultimately never delivered. Don’t buy from new suppliers without verifying their existence and reliability.
Monitor who chooses and works with vendors. As a business owner, it’s your job to stay on top of all aspects of your business, regardless of how much you may trust your employees. Make sure you periodically review the vendor selection process and ensure that the employee who selects vendors is not the one making all the purchases and payments. You don’t want to find yourself in a situation where an employee is paying himself or herself, instead of the vendor, and taking cash from your business.
Be wary of unusual invoices. Many small businesses are scammed by phony solicitations that come in the form of an invoice requesting payment for a directory listing. These official looking invoices are designed to mislead unsuspecting businesses into thinking that they come from a legitimate publisher. In many cases no such directory exists or, if it does, its distribution is typically very limited.
Train your employees to be on the watch for invoices with disclaimers. By law, an order form that looks like an invoice is required to carry a disclaimer in large type to the effect that, "This is not a bill. You are under no obligation to pay the amount stated unless you accept this offer."
Finally, be sure that those individuals making purchasing decisions know to be suspicious of callers offering bargains that must be acted on immediately.

The above was provided by the Wisconsin Institute of CPAs (www.wicpa.org), based in Brookfield.

April 4, 2003 Small Business Times, Milwauke

Poll: employees not worried about job loss, don’t see anti-Arab expressions

With war raging in Iraq, the latest national "America At Work" poll commissioned by the Employment Law Alliance shows that the vast majority of American workers do not believe the conflict poses a direct threat to their job security.
Scott C. Beightol, CFO of the Employment Law Alliance and a partner in the Labor and Employment Law Practice Area of the Michael Best & Friedrich law firm in Milwaukee, said the poll is believed to be the first national survey in which workers were questioned on the impact of war on the workplace just a few days before the fighting erupted.
Of those polled by the research firm of Reed, Haldy McIntosh & Associates, 84% said they’re not worried about losing their jobs because of the war with Iraq.
Of the nearly 1,000 people contacted by researchers, almost 40% said they personally know someone in their workplace who has been or is likely to be deployed. Highlights of the survey include:

Canal Street, the main east-west thoroughfare in Milwaukee’s Menomonee River Valley, will be redesigned in about half the time an engineering firm would normally take to complete the project.
The street, which currently traverses only about half the length of the valley — will be rebuilt and extended west to Miller Park to facilitate redevelopment of the 1,200-acre industrial valley.
Apart from completing the design process in the 12 months allotted by the city, designers will have to solve a plethora of obstacles, ranging from environmental remediation to flooding and stormwater treatment challenges.
Engineers have to figure out how to reconstruct 1.3 miles of existing roadway from 6th Street to 25th Street – and where to route and 1.5 miles of new roadway from 25th Street to the southeastern corner of Miller Park’s parking lot.
The new and rebuilt Canal Street will be a four-lane road with a 10-foot-wide path along the entire northern side of the road to accommodate bike traffic both ways.
"Normally we would do something like this in 18 to 24 months, instead of 12 months," said Paul Boersma, environmental marketing director for the Milwaukee office of HNTB Corp. "Using a team approach really helps."
HNTB is one-half of Milwaukee Transportation Partners, a joint venture with CH2M Hill.
The two nationwide firms, both of which have offices in the city, joined in June of 2001 and submitted the successful bid to the Wisconsin Department of Transportation for the redesign of the Marquette Interchange.
The partnership was awarded the design contract for Canal Street in January, according to Kristine Martinsek, who is handling community involvement for the project.
"We have formed an advisory committee that has met twice," Martinsek said. "We met once to get a general overview and once to look at design alternatives which will be presented at the public meeting."
The two proposed designs address questions of where the new sections of Canal Street should be routed, according to Martinsek.
Routing questions must address "missing existing utilities, creating more land for economic development, minimizing the size of bridges that need to be made and creating access for all the parcels adjacent to the proposed alignments," Boersma said.
The general public got its first look at design alternatives for Canal Street at a public meeting March 26 at Miller Park’s Uecker Room. However, according to Boersma, even after routing questions are answered, much of the design work remains to be done.
"This project will need to integrate with an overall environmental remediation project to handle contamination in the CNC Shops area (east of Miller Park)," Boersma said. "That will include capping of soils with clean soil caps. … We would expect the whole CNC Shops area to be raised from a few to several feet above its existing level."
While other professionals have already planned a series of created wetlands that will treat the stormwater for the west side of the redevelopment area, stormwater treatment options for the east side of the project are still up in the air, according to Boersma.
"We are much more space-constrained on the east side of the valley, but we would like to integrate some stormwater management features with some open spaces we are creating along the river edge," Boersma said.
The stormwater features will be designed to cleanse stormwater, rather than retain excess rainwater and prevent flooding, but the potential for flooding will influence designs in the west end of the valley, according to Boersma.
"On the west side of the valley, there are some larger flood plain issues that are being evaluated as part of the overall project," Boersma said. "We need to determine how to keep the flood waters from spilling out of the river banks."

April 4, 2003 Small Business Times, Milwaukee

When it comes to money and investing, doing it the right way is essential. Now, one person’s "right way" may not fit another’s, but every investor needs a game plan.
So let me offer some rules that apply whether you are a value investor, a growth investor, an active trader or just someone who believes in capitalism and wants a shot at building a retirement portfolio or a stash for the kid’s college fund.
First and always:
Think before you dig into your pocket. Do your homework. Read, read and read. Don’t rush into any investment, no matter how good it may sound or how many friends have already committed funds to it. Without exception, every investment has pros and cons. Know what they are.
Know what you are buying. Peter Lynch, the legendary mutual fund advisor, once said that he never put money in a company producing a product or service that he didn’t understand. He learned that from Warren Buffet. Both men have done quite well for themselves and investors.
This doesn’t mean that, like Buffet, you should avoid anything that is "technology" oriented. It does mean that you should attempt to learn as much as you can about software, hardware, the Internet and related issues.
And don’t accept somebody’s 30-second explanation of a fancy piece of software that took years to develop. Study everything you can on the company and its products – before you invest.
Don’t be afraid to go against the grain. If all your friends are excited about a particular investment, you might also consider buying it – but do your homework first. If it turns out that each person bought because another recommended it, you might want to consider the motivations of the original source.
Monitor your investments regularly. You don’t need to rush home every evening and punch up your stocks or funds on Yahoo! or America Online. But you should carefully monitor each investment in your portfolio. We have all heard the adage the squeaky wheel gets the oil. Investments that do not perform in line with your expectations should get immediate attention.
Don’t be afraid to admit you made a mistake. If you invest in a stock and it goes the wrong way, don’t be swayed into throwing more money after it. Don’t feel that every investment you make must turn out to be a winner. Cutting your losses early on may save you more in the long run. Consider using stop orders at a predetermined price to limit losses and protect profits. This does wonders to reduce the emotional involvement in the often-difficult decision to sell.
Don’t be afraid to put money into an investment that has experienced a major price decline. But do so only after careful research and only after you have found an investment thesis that makes sense to you. Keep in mind that many investments get beaten up for good reason.
Take all research and chatter about a stock with many grains of salt. That goes for what analysts are saying and for what you may read on a stock chat room. But do read everything you can and learn to synthesize it all. Eventually, you will learn to cut through all the clutter and you will make better decisions more often.
And finally, ask questions – all the time. Never stop pursuing knowledge about the financial markets and investment strategies. When it comes to investing especially, knowledge truly is power.

Michael R. Murray is a certified financial planner, practitioner and a vice president of investments at the Franklin office of Robert W. Baird & Co. He is a member of The Cairns Group, a team of Baird financial professionals and support staff working exclusively on behalf of Baird clients.

April 4, 2003 Small Business Times, Milwaukee

Age: 45
Title: Wisconsin Commissioner of Insurance
Education: 1979 graduate of Pitzer College, Claremont, Calif.; earned law degree in 1986 at the University of Wisconsin-Madison.
work experience: Served as vice president and general counsel of United Government Services, Milwaukee; litigation partner, Michael Best & Friedrich, Milwaukee; assistant district attorney of Milwaukee County; attorney, Legal Action of Wisconsin, Madison.
Family: Lives in Fox Point with wife Loren Leshan, and their son Lorenzo.
hobbies: Wind surfing, sailing and bicycling.
Greatest advice: "My father taught me to be honest in dealing with people and to never sell something you don’t believe in. (Milwaukee County District Attorney) Mike McCann, another mentor of mine, taught me to approach every issue with integrity. And Gordon Baldwin, a constitutional law professor, taught me the importance of being intellectually honest about what the law says and what the law means, and to be fair in its application."

Kenneth Szalli, director of the Port of Milwaukee, readily acknowledges that much of the privately owned land surrounding the port resembles a war zone that time has forgotten.
For centuries, the Port of Milwaukee has served its maritime trading function — ships and cargo come in, and ships and cargo go out.
Indeed, the Port of Milwaukee provides about 2,000 jobs, creating about $94 million in personnel wages and salaries and generating about $80 million in annual revenues, according to a study by the St. Lawrence Seaway Development Corp.
However, other Great Lakes cities have begun to rethink the missions of their ports and the potential uses of the nearby real estate.
Szalli discussed the Port of Milwaukee’s future in a recent interview with Small Business Times executive editor Steve Jagler. The following are excerpts from the interview.

SBT: The Port of Milwaukee continues to function as a viable Great Lakes commercial port. What is the traffic going in and out of the port?
Szalli: A round number – last year, we did 3 million tons of cargo. Over the last 15 years, tonnage in the port has doubled. We are growing, we are healthy and we continue to do our thing here.

SBT: Has the economic slowdown, with Wisconsin manufacturers losing or shifting so many production jobs to China, affected the port? So many manufacturers are shifting production to China, and the Chinese are then pirating that technology and selling it for lower prices, undercutting the American manufacturers.
Szalli: This is the world conundrum. That’s what it is. This is something we’ve been seeing for a number of years. Interestingly enough, the impact of that on the port is not (significant).

SBT: I suppose that if a Wisconsin company outsources some of its production to China, that product ultimately has to come back, and the port would still get the business anyway.
Szalli: Yes, it comes back. Although, I have to admit, that as a citizen, I’m concerned about what I see. I think there is kind of a bargain with the devil that goes on.

SBT: What about the steel tariffs that President Bush imposed on foreign steel to protect American steel? He promised the tariffs when he was campaigning in Ohio and Pennsylvania, and so he threw them that bone. But Wisconsin manufacturers have told me their steel prices have gone up by more than 30% since those tariffs were raised. Has that had an impact on the port?
Szalli: That’s a tragedy. You can quote me on this. That’s one of the dumber things Bush has done. The tariffs have cost more jobs in this country than they saved. At the port, we lost two-thirds of our steel tonnage. We went from 175,000 tons to 47,000 last year.

SBT: I understand that what comes in and out of here changes over time, but the essence of the port, of its function as a Great Lakes port, has remained the same, hasn’t it?
Szalli: Yes. Going back probably to when the first guy came here in a canoe. That’s one of the things that made Milwaukee a great city – to bring things in and out by water. It’s a functioning, thriving port.

SBT: Yes. But have you or the Board of Harbor Commissioners ever given any thought to the notion that the land around the port could be put to a higher, greater use? Today, the land looks like a war zone.
Szalli: First, that’s not port property you were looking at. We only have jurisdiction over our property. On an ongoing basis, we talk to the Department of City Development. Years ago, the port turned over land for public use – the Summerfest grounds.

SBT: Could any more port land be turned over for public use, or has that been cut to the bone?
Szalli: It really is. All the rest is privately owned. For instance, if somebody wanted to go in and buy out Miller Compressing and build an office tower, have at it. They can watch ships come and go on an ongoing basis. That is perfectly acceptable.

SBT: Other cities have developed the land around their ports to become more than just a port. Places like Cleveland, Ohio; Erie, Pa.; and Detroit, Mich.
Szalli: Yes and no. If you look at Cleveland, what they actually did is move their port, to put the Rock ‘n Roll Hall of Fame in, actually. Unfortunately, we don’t have that option here.

SBT: What about the other ports in Wisconsin? Places like Racine, Kenosha and Port Washington are dressing up their ports to be public destinations.
Szalli: Well, they closed their ports for lack of (shipping) business, is what they did. They’re yacht harbors. They were not really functioning ports.

SBT: What about a car ferry? Is it important that Milwaukee be the western destination for a car ferry that goes between Michigan and Wisconsin?
Szalli: Yes. We’ve been heavily involved in the car ferry development and expect to make a positive announcement on that in the next 30 to 60 days. We’ve been working with Sheldon Lubar, and that deal is fundamentally put together. There are a few outstanding issues they need to cover.
This would be a high-speed ferry called Lake Express. It will operate between Milwaukee and Muskegon, and it will carry automobiles and passengers. It would operate from May 1 through Dec. 31, making three roundtrips per day. You’ll get across the lake in about 2-1/2 half hours, dock to dock.
It’ll carry 250 passengers and 46 cars. We’ll build a terminal.

SBT: So, it’s just a matter of working out the details?
Szalli: They are working out the details now. They’ve signed the shipyard contract, and they’re finalizing the long-term financing. The equity is in place.

SBT: From the tourism aspect of it … the ferry will drop people from Michigan off here on the south end of the Port of Milwaukee, at the foot of the Hoan Bridge. There’s a Coast Guard station and a Naval Reserve building. There’s nothing there to make it a tourist destination. Are these poor folks from Michigan just going to be dropped off in the middle of nowhere? Is there any thought of making the area more compatible as the ferry’s landing point?
Szalli: That is Bay View. That is not our jurisdiction. That is the Department of City Development. We will continue to work with the Department of City Development, with the transit people. The plan is not fully developed, but we would request that the county make this a trolley stop.
Some of those things still have to be worked out.

SBT: Would you anticipate discussions about what’s the best use of that surrounding land? Do the Coast Guard station and Naval Reserve building have to be there, or could the land be put to a greater use, to accommodate the car ferry and public lakefront access?
Szalli: In future years? Absolutely. We would think that that would be ripe for discussion.

SBT: The port owns the land on which the Coast Guard sits. What is the lease for that building? What about the lease for the Naval Reserve building?
Szalli: The Naval building, we’re actually redoing that lease right now, but on a more short-term basis. Those leases were 50-year leases. We no longer do those. I think the Coast Guard has 15 more years left on its lease, so that’s not an issue at the moment, which is OK, because it will give the ferry a chance to prove out. We’re hopeful that over time we’ll have two (ferry) ships operating.
Before we get the Coast Guard excited and the Navy excited, we would want to see the direction that (the ferry) moved before we start discomforting them in any respect.
SBT: So there is hope for the south side?
Szalli: I do personally believe that the ferry also could eventually act as a catalyst for Kinnickinnic Avenue.

SBT: You mean Kinnickinnic could eventually be developed with antique shops, cafes, theaters, coffee shops and other businesses to serve the people who would be coming off the ferry?
Szalli: You got it. That’s exactly right. But that’s only going to be if the people in the (Bay View) area want it.

SBT: So, big picture, what about the possibilities? In principle, it seems that you’re saying that there are other types of development around the port that could coexist with the port.
Szalli: I want to be crystal clear on this. I’m not talking about development within the port (property). There are private sites …. I think we can utilize some of these unused places, and I think we’re fully in tune with that and want to see that happen.
(He points to a map of industrial sites around the port) You come down right here, and this is a tragedy. It looks like Berlin after the war, for crying out loud. The Solvay Coke site is a mess.

April 4, 2003 Small Business Times, Milwaukee