Wisconsin Energy Corp. has added some fresh political muscle in a final push for approval of its Power the Future expansion plan.
The Milwaukee company is contracting with Wilhelm & Conlon Public Strategies, a high-powered Chicago firm that has hired Thad Nation to be the director of its new Wisconsin office.
Nation, who was the deputy campaign manager of Jim Doyle’s successful Wisconsin gubernatorial campaign last year and was the director of communications for Doyle’s transition team, is now working on a contract basis to serve Wisconsin Energy’s We Energies public utility subsidiary.
“I’ll be working with We Energies, with the Power the Future team and increasingly taking on a role as the media spokesman for the project,” Nation said. “I anticipate being very busy.”
The role became vacant when Michael John resigned as director of public relations and communications at We Energies to become the director of public relations for Menasha Corp. last November.
The addition of Nation and his ties to the new governor’s office updates Wisconsin Energy’s political stable.
The company already employs James Klauser, who was a member of former Wisconsin Gov. Tommy Thompson’s cabinet and was often referred to as the state’s “vice governor.” Klauser was named senior vice president at Wisconsin Energy in 1998.
Wisconsin Energy also named former Wisconsin Assembly Speaker Walter Kunicki as vice president in 1998.
Wilhelm & Conlon brings national connections to Wisconsin Energy’s arsenal. Co-founder David Wilhelm was the national manager of the Clinton/Gore campaign in 1992 and was then named the chairman of the Democratic National Committee.
Co-founder Kevin Conlon was appointed by former President Bill Clinton to serve on the Presidential Advisory Committee on Expanding Training Opportunities.
From its Chicago office, Wilhelm & Conlon is expanding its service territory to include other states in the Midwest, Nation said.
“This is going to be a growing region for Wilhelm & Conlon, and I anticipate taking on a couple more clients in the next year,” Nation said.
Wisconsin Energy is on the stretch run to gain approval for its Power the Future project, which proposes construction of a natural gas-fired generation plant in Port Washington and expansion of its coal-burning generation plant in Oak Creek.
The Oak Creek proposal has been the most controversial component of the Power the Future plan, as critics have argued that expanded coal-burning would pose increased environmental and health risks and would diminish the value of lakefront land in the city.
However, the critics have been losing that campaign in recent weeks.
On March 20, the Wisconsin Public Service Commission denied a legal brief filed by S.C. Johnson & Son and Wisconsin’s Environmental Decade. The brief contended Wisconsin Energy’s application for its Power the Future plan was incomplete, but the PSC disagreed.
Wisconsin Energy then picked up a conditional public editorial endorsement for its proposal from the Milwaukee Journal Sentinel.
The company gained further momentum when it reached a tentative agreement Tuesday with the City of Oak Creek. Under terms of the agreement, Wisconsin Energy will contribute $20 million to the city’s economic redevelopment efforts and pay $2.5 million for construction impact mitigation compensation.
Wisconsin Energy’s agreement with Oak Creek was reached just days before the citizens of the south-side suburb will be voting to elect a new mayor. Outgoing Mayor Dale Richards had lost in the primary election in February and will soon be stepping aside. Three aldermanic races, including two unopposed races, also will be decided in Tuesday’s election.
SC Johnson chairman emeritus Sam Johnson, who told SBT he can see the smoke stacks of the Oak Creek plant from the back yard of his rural Racine home, has vowed to continue his campaign of opposition to the plan, according to officials of Responsible Energy for Southeastern Wisconsin’s Tomorrow (RESET), an organization of opponents to the plan.
“While it is certainly disappointing that Oak Creek would consider going back on its previous, very strong, statements against the coal plans, it’s not wholly unexpected,” said RESET member Susan Greenfield, town chairwoman of the Town of Caledonia. “We Energies is a very large, very powerful company. It’s spending millions of dollars to push its plan and stands to make billions from it. We Energies has an army of paid lobbyists that have undoubtedly spent a great deal of private time with Oak Creek officials and significant financial resources to make things happen in the company’s favor.”
Wisconsin Energy officials lauded Oak Creek’s decision.
“The proposed expansion in Oak Creek will result in cleaner air through reduced emissions, the creation of good paying jobs, provide lasting economic development for the City, and will help Wisconsin become more energy self reliant,” said Larry Salustro, a vice president with Wisconsin Energy.
Gaining tentative approval from the local municipality is likely a key hurdle for Wisconsin Energy, which expects a final ruling from the Public Service Commission in November.
RESET officials have not given up their mission, but they know they face an uphill task in derailing We Energies’ Oak Creek plan. “It appears David has awakened Goliath,” the organization of nearly two dozen health organizations, environmental groups, businesses and others told its members in a letter this week.
The letter predicted We Energies is poised to turn up the intensity of its campaign for the Oak Creek expansion.
According to RESET, We Energies has hired a California-based media company to devise a “significant” radio and television advertising campaign that will begin Sunday.
We Energies also has hired at least 15 lobbyists and four public relations firms to promote its plan, RESET said.
“We expect this new wave of paid advertisements to be hard-hitting and stress the alleged value of dirty coal over cleaner, healthier natural gas,” RESET stated.
By Steve Jagler, of SBT, March 27, 2003

The Waukesha Area Chamber of Commerce (WACC) is spearheading a coalition of businesses promoting freeway expansion.
Calling themselves the coalition for Safety With Increased Freeway Transportation (SWIFT), they support the original plan put forward by the Southeastern Wisconsin Regional Planning Commission (SEWRPC), which includes the addition of 127 miles of lanes to metropolitan Milwaukee’s freeway system.
"Our number one concern is safety — the safety of employees, clients and customers of area businesses," said Patti Wallner, president of the WACC. "Our freeway system is becoming more and more dangerous to drive on because of the congestion. This congestion will only get worse in the years to come. We have an opportunity now to reconstruct the freeway and add lanes which will ease the congestion and make the freeway safe again."

Wallner went on to say, "business leaders are also concerned about Southeastern Wisconsin’s economy. The congestion hurts the bottom line of every business in the area because of lost employee productivity and customers inhibited from making the trek to the commerce centers."

More than 100 area businesses have already added their names to the growing list of members of SWIFT. Wallner said, "I am not at all surprised by the response we have received. Freeway congestion has been an issue for area businesses for a while now. We put the word out about the coalition on Friday. By Monday, 75 businesses had signed on, and the responses keep pouring in."

A Minnesota man and three investment partners have bought the former Milwaukee Solvay Coke & Gas Co. site on the city’s south side, where they plan to build the largest real estate development in the state’s history and change the city’s skyline.
Thomas Short and his partners, whom he declined to identify, recently purchased the long-abandoned industrial site at 311. E. Greenfield Ave.
The investors intend to develop a gargantuan, $1.5 billion, mixed-use complex of 14 20-story towers suited for residential, office, retail and marina use, Short said.
The 46-acre site is located within the shadows of the Rockwell Automation clock tower, directly south Greenfield Avenue, east of First Street and north of the Kinnickinnic River.
Short and his investment partners formed Golden Marina Causeway LLC to acquire the property from Cleveland Cliffs Inc. of Ohio. Real estate sources said the limited liability corporation paid approximately $400,000 for the site and agreed to put additional funds into an escrow account to help pay for demolition and site remediation. The property had a total assessed valuation of $929,900 in 2002.
Short is the managing partner of the new corporation, which is gathering the financing to develop the project.
He tentatively refers to the office tower redevelopment as Gas Light Park.
The investors already have some office tenants who have given preliminary commitments to occupy space in the towers, Short said.
Short, who still resides in St. Paul, Minn., said the property and others like it near the Port of Milwaukee are ripe for development. Short said he was involved in similar industrial rehabilitation projects in St. Paul when that city essentially reinvented itself by capitalizing on its waterfront properties along the Mississippi River.
"When I came here from St. Paul, I looked at the Port of Milwaukee and said to myself, ‘This is just like St. Paul 20 years ago,’" Short said.
Short said he has reached a verbal agreement with Lyle Balistreri, president of the Milwaukee building and Construction Trades Council, AFL-CIO, for the towers to be built by union labor.
Although the investors have acquired the Solvay property, they will face plenty of obstacles in their path to launch the development.
The first issue to be overcome is the environmental contamination at the site.
The site was first developed as an industrial site in 1902, where metallurgical coke was manufactured for use in the production of steel, foundry coke, coal gas and coal tar, according to historical archives at the University of Wisconsin-Milwaukee.
The US Environmental Protection Agency has not declared the site a Superfund site, but the EPA has documented some contamination at the site, which has been vacant since 1982. Contaminants found in the soil, groundwater and sediment, including arsenic, chromium, cyanide and lead, according to the agency.
The City of Milwaukee has classified the Solvay site as a "mothballed brownfield."
Indeed, the site, which is located between two sets of railroad tracks, is riddled with dilapidated buildings, rubbish, barrels and overgrowth.
"It’s a blighting influence and a nuisance," said William Zaferos, spokesman for the Milwaukee Department of City Development.
"We’ve made a deal with the EPA to clean it up," Short said.
The EPA issued an administrative order by consent for Short to remediate the site. Terms of the agreement were not disclosed, but a cost assessment study conducted by the Milwaukee School of Engineering in 2001 estimated the site remediation costs at $10.4 million.
The environmental remediation will be performed by Eli Cos., an environmental and demolition company, which shares an office with Short’s Water Street Holdings LLC near the Port of Milwaukee.
The investors have contracted Earth Tech Inc., an engineering company based in Long Beach, Calif., to be the project manager for the remediation.
"We expect to start cleanup within 30 days and hope to begin development by the end of the year," Short said.
Compared with other types of seeping contamination, soil that is polluted by coal is relatively easy to remove, he said.
In addition to the contamination, the Solvay project also faces the obstacle of gaining the approval of the City of Milwaukee to proceed with development.
The city has not devised a plan for the development of land surrounding the Port of Milwaukee, and Julie Penman, commissioner of the Department of City Development, said the city does not want the port to be developed in "piece meal" fashion.
The Solvay site is zoned by the city for industrial use and had a 2002 property assessment value of $929,900.
A final obstacle for the redevelopment project may be the market. Some real estate officials in Milwaukee question whether the city’s office and residential markets could support such a large-scale development.
To put the scope of the Solvay project into perspective, its projected $1.5 billion cost would be more than three times the value of the Miller Park project, which exceeded $400 million, and would be five times the value of the proposed $300 million Pabst City project at the former Pabst Brewery site in downtown Milwaukee.
The only other development project to rival the Solvay project would be the proposed $1 billion Pabst Farms mixed-use project in Oconomowoc.

April 4, 2003 Small Business Times, Milwaukee

Milwaukee business owners cite taxes as top issue; Clarke most favorable

Taxes, transportation and infrastructure top the list of concerns for Milwaukee small-business owners as they look ahead to next year’s mayoral race. And they want the person who wins that race to be good at building relationships, a person with vision, integrity and business skills.
Those are the findings of a survey Small Business Times commissioned of business owners whose companies are located in the city of Milwaukee.
Business Development Directives, a research firm in Eagle, conducted the telephone survey. Working from a list of SBT subscribers whose businesses are in Milwaukee, researchers completed 103 telephone interviews.
The survey was not an attempt to measure how business owners would vote in next year’s elections; respondents were not included or excluded by whether or not they live in the city. Rather, it was an effort to gauge what business owners as a constituent group would want and expect from the city’s next mayor to improve the community as a place in which to operate a business.
Nearly half of the respondents indicated that a prospective mayor’s business management experience was very important.
Those surveyed also were surprisingly harsh in their judgment of Mayor John Norquist, who is not expected to run again after he completes his current four-year term next year.
Norquist, who first took office in 1988, has generally had the strong support of high-profile business leaders, but in the SBT survey, fully half of those responding gave him only a "C" grade for his performance. And while 22% gave the incumbent an "A" or "B," 29% graded the current mayor a "D" (21%) or "F" (8%).
While the poll was not limited to city dwellers – the only ones who can vote – among all of those surveyed, the mayoral candidate most preferred was Milwaukee County’s relatively new sheriff, David Clarke. Former Congressman Tom Barrett and current Ald. Tom Nardelli ran second and third in preference behind Clarke, who, like Barrett, is not a declared candidate.
When asked about their familiarity with names of people who say they will run for the mayoral post and those whose names are mentioned as potential candidates, the following responses were given, with 5 being the most familiar with the name and 1 being the least familiar: former Congressman Tom Barrett, 4.2; Alderman Tom Nardelli, 3.6; Alderman and Common Council President Marvin Pratt, 3.6; Milwaukee County Sheriff David Clarke, 3.4; Alderman Michael D’Amato, 2.2; Milwaukee County Clerk Mark Ryan, 2.1; State Rep. Pedro Colon, 1.8; developer Randy Roth, 1.3; Municipal Judge Vince Bobot, 1.2; businesswoman Sandy Folaron, 1.1.
The tough grades for Norquist are especially striking, considering the strong support he has had from business leaders in the community. Norquist has actively courted business support through policies that include downtown development efforts, holding down property taxes and vocal support for private school choice in the Milwaukee Public School system.
Some Norquist partisans believe that the slice of business polled in the survey didn’t fairly represent the sentiments of business owners in the city as a whole. They also suggested that smaller businesses may be out of touch with the mayor’s efforts on their behalf. Critics’ responses, Norquist supporters told SBT, suggested they were unaware of many pro-business accomplishments of the administration.
Some of those polled don’t buy that argument. "I think that he’s ignored the needs of a lot of small to medium- sized businesses," said Frank Sabella of DMX Music.
Still, many business owners responding to the survey spoke highly of Norquist. "He’s done a lot of good things for the city," said Walter Dusold, owner of Artisan Wood Working.
The survey asked respondents to list the three top issues facing Milwaukee’s next mayor. Of those who responded, 48% listed taxes among the three issues, 44% listed infrastructure and 32% named crime.
Fully 50% of them listed good relationship skills among the most important attributes the next mayor should possess. The poll asked respondents to name up to five characteristics.
The four other most commonly selected characteristics were categorized as "Strength/vision" (named by 44% of respondents), "integrity" (32%), "business and financial skills" (31%) and "consensus building" (21%).
Half of those who answered said it would be "very important" for the next mayor to have business experience, and another 25% labeled business experience "important."
Despite that, the candidates most familiar to business owners have no extensive business experience. Respondents showed very little familiarity with Sandy Folaron, a west side business owner who has declared her candidacy, or Randy Roth, a developer who has been considering a run for mayor.
The candidates who scored most strongly on a scale of 1 to 5, with 1 representing "not familiar at all" and 5 "very familiar" were Barrett, Nardelli, Ald. Marvin Pratt, Clarke and Ald. Michael D’Amato.
Poll respondents also were asked their preferences among mayoral candidates or potential candidates.
Sheriff Clarke is at the top of that list, the favorite of 24% of those polled. Barrett is No. 2, with 19%, and Nardelli No. 3, with 16%. Of the three, only Nardelli has declared his candidacy. Through a spokeswoman, Clarke declined to comment on the poll results or the prospect of his running for mayor.
Clarke "seems to be able to confront issues," said Norine Weber of Alpha Source.
Barrett’s experience as a member of Congress would make him "an excellent candidate," said Dusold, who lives in the city. Connections with Washington would be valuable in winning federal help for the city, Dusold said.
Ray Fister of 5th Floor Recording Co. said of Barrett and Clarke, "both of them are four-star."
Business owners in the survey were asked whether they expected to keep their businesses in the city in the near term, and 87% said "yes." Another 7% said "no" and 5% said they were unsure.
For the longer term, however, uncertainty grew. Sixty percent said they intended to keep their businesses in the city "in the long term," while 20% said "no" and another 20% were unsure.
Among issues that owners said "might cause" them to move their businesses out of the city, 40% cited taxes, 35% cited "general location," 20% cited incentives offered by other communities, and 15% cited "quality of life."
Respondents who spoke favorably of the Norquist administration’s contribution to businesses in the city cited several accomplishments: increased downtown development, attracting new businesses to the city, holding the line on taxes and projects such as the new 6th Street bridge.
"I think he had a vision," said Joanne Angelici of Amera-Care Transport, citing Norquist’s downtown development efforts and projects such as the Riverwalk. "He’s done some good things for the city."
Yet those respondents were in the minority in the survey. When asked about Norquist’s positive contributions to the city’s business community, more than half – 52% – were unable to cite anything to surveyors. "There’s not a lot that’s been positive," said one respondent. "Nothing. Only large corporations got any attention," said another.
Respondents who spoke unfavorably of the Norquist administration brought up a variety of issues. Some spoke unhappily of what they perceived as a failure of the city to promote itself. Others criticized the tearing down of the Park East Freeway, now under way.
Some responses indicated that the recent round of criminal charges against city aldermen might have further tainted Norquist himself, whose image already had been affected by a sex scandal.
When asked to single out ways in which the Norquist administration hindered business in their view, 33% of respondents cited transportation and infrastructure, 30% cited business development, 27% cited taxes and 21% cited "lack of leadership."
Elaborating on their responses, some complained the current administration "ignored small business" or that the city was "not attractive" for business.
Norine Carlson Weber said rising service fees were a frustration for her company, Alpha Source Inc., and as a result, "the administration doesn’t seem to have been very business friendly."
Wayne Staats of eMapping Solutions said he finds the city’s transportation sorely lacking. "The highways around here are awful, and I blame John Norquist for not attending to that."
But while some who responded criticized sharply the Norquist-led move to tear down the Park East, Staats said he himself has come around on that issue. "Initially I was against it," said Staats. "But after I’ve been thinking about it, and watching it come down, it frees up a lot of property down there. What we gain by ripping it down exceeds what we gained by leaving it up."
Some of the survey findings surprise pro-Norquist people both inside and outside City Hall.
Craig Peterson, president of the downtown public relations firm Zigman Joseph Stephenson, a Republican and a longtime Norquist supporter, told Small Business Times that the survey responses don’t square with the mayor’s record.
The criticisms suggest that the critics in the survey "don’t understand the office of mayor, nor do they have understanding how the office has functioned," Peterson said. "If they really looked at his record, and how he has reduced the size of city government, they would think, ‘This guy’s one of us.’ He could be a small businessman."
Peterson praised the current downtown revitalization and said Norquist deserves much of the credit for making it happen without heavy subsidies from the city. "Other mayors have gone into cities and thrown dollars downtown. [Norquist] doesn’t do that. The mayor has been very practical on how he has approached development."
"The Norquist Administration has reduced the size of city government by more than 750 positions at a time when the state needlessly ran up the size of its workforce," said Norquist spokesman Steve Filmanowicz. "Our budget growth has been right around the rate of inflation, which is no mean feat given the pressures caused by spiking health insurance and arbitrated salary packages."
Julie Penman, Milwaukee commissioner of city development, cited numerous Norquist administration accomplishments. Norquist spearheaded a program to provide emerging businesses greater access to capital through the Milwaukee Economic Development Corp. Since its founding in 1992, 531 firms have benefited from the program, with loans provided by banks, and the city helping to guarantee the loan.
Penman also singled out the administration’s policies to streamline permitting and regulatory processes for developers. Overall, since 1987, the year before Norquist took office, the total number of business operating in Milwaukee has grown by nearly 2,000, to 13,529 today, she said.
At the same time, the city has held tax levy increases below the inflation rate, encouraged policies that have brought more than 3,400 units of new housing downtown, promoted the development of the Riverwalk and promoted redevelopment in areas as varied as Wisconsin Avenue, Martin Luther King Drive and Capitol Drive.
"Either the individuals interviewed are completely oblivious to what’s going on around them," Penman said, "or we have not done a very good job of getting the word out about our success."
Why hasn’t the message resonated? "I think the mayor’s been misunderstood," said Peterson, a public relations professional. Norquist’s cerebral style may work against him from a public relations point of view, Peterson said. "He’s not a Rudy Giuliani, who’s a cheerleader.
"My gut tells me that history is going to look very favorably upon his image."

The 2004 Milwaukee Mayoral Race
Small Business Times asked owners of businesses within the city of Milwaukee to comment on potential candidates to succeed Mayor John Norquist. The list of names includes people who have stated they will run for the position or whose names are being discussed in the community.
— Most familiar names: Tom Barrett, Tom Nardelli, Marvin Pratt, David Clarke, Michael D’Amato
— Most favored potential candidates: David Clarke, Tom Barrett, Tom Nardelli
— Top three issues for the new mayor: Taxes, transportation/infrastucture, crime
— Characteristics the new mayor should possess: relationship skills, strength/vision, integrity, business/financial skills, consensus-building

What poll respondents said about the Norquist administration’s actions for business
"Not a lot that’s been positive."
"Nothing. Only large corporations got any attention."
"Nothing."
"River development.
Water Street. Lakefront."
"More downtown development; 6th Street Bridge."
"Attracted things to Milwaukee; Good mayor."
"Kept taxes down."
"Held taxes at a realistic level."

April 4, 2003 Small Business Times, Milwaukee

Gomez seeks balance in OCI’s philosophy

The son of an insurance agent, Jorge Gomez couldn’t help but have an intuitive sense of the industry he is now charged with regulating.
During his childhood in California, Gomez heard plenty about the insurance business from his father, who owned and operated an agency for more than 25 years.
"He sold all lines of insurance: individual, group, property and casualty and health," Gomez says of his dad, who is now retired. "I never sold insurance myself, but growing up I felt I got to know the industry because I was always surrounded by insurance guys."
Appointed by Gov. Jim Doyle in mid-February, Gomez succeeds Connie O’Connell as insurance commissioner for the State of Wisconsin. O’Connell, who was appointed commissioner by then-Gov. Tommy Thompson in January 1999, recently left her post to join a Madison law firm.
Watching his father run the agency also gave Gomez an understanding and appreciation for the challenges of managing a family-owned business. He carried those early impressions with him when he moved to Wisconsin in the mid-1980s to pursue a career in law.
After earning his law degree at the University of Wisconsin-Madison in 1986, Gomez joined Legal Action of Wisconsin in Madison, where he represented farm workers in employment and income issues. Two years later, he went to work for the Milwaukee County District Attorney’s Office, where he prosecuted cases in all criminal divisions, including homicide.
In 1996, he became a partner at the Milwaukee law firm of Michael Best & Friedrich, pursuing trial work, commercial litigation and white-collar criminal defense. Gomez also represented physicians and physician groups in government regulation compliance issues.
When Doyle called on him to take over insurance regulation for the state, Gomez was working for United Government Services in Milwaukee, a Medicare and Medicaid claims processing company and affiliate of Cobalt Corp. and Blue Cross & Blue Shield United of Wisconsin, the state’s largest health insurer.
At United Government Services, Gomez was responsible for all legal affairs but also oversaw the areas of regulatory compliance, internal audits and quality assurance.
His diverse career history suits him well to regulate the state’s insurance industry, those who know him say.
"Jorge Gomez brought to us a lot of experience, having worked at Michael Best & Friedrich and the district attorney’s office," said Sandy Coston, president of United Government Services. "In those roles he had a lot of exposure to compliance matters and health care related issues with providers and beneficiaries. Based on his organizational skills, his prior experiences and his ability to manage people and multiple projects, he will do very well in the role of insurance commissioner."
In particular, Coston has praise for Gomez’s people skills.
"He has a talent for interacting with people at all levels, not just his peers in the management ranks," she said. "That’s really a very strong suit of his, as well as his negotiation skills and business planning abilities."
As commissioner, Gomez and his staff of 135 are responsible for examining the insurance industry’s financial health, business practices and the market conduct of hundreds of insurance companies operating in Wisconsin.
The department also licenses insurance agents and administers the State Life Insurance Fund, the Local Government Property Insurance Fund and the Patients Compensation Fund.
Although he’s been on the job for little more than a month, Gomez already has had to address a contentious issue over the governor’s proposal for a one-time shift of $200 million out of the Patients Compensation Fund to help eliminate a $3.2 billion state budget deficit.
The proposal would shift the funds to help maintain medical assistance programs for the poor and the elderly. The Wisconsin Medical Society, representing hundreds of Wisconsin physicians, is against the idea, suggesting it would undermine the fund and possibly push the state into a medical malpractice insurance crisis.
The fund helps cover medical malpractice claims against Wisconsin health providers.
In recent testimony before the Legislature’s Joint Finance Committee, Gomez defended the governor’s proposal, noting that the fund currently has assets of $600 million.
"We have evaluated the impact of the one-time fund transfer, and we believe there will be no immediate risk to cover any claims," Gomez said in an interview a day after his testimony. "There is no risk of a patient not being covered by the assets of the fund."
Other issues that Gomez said will be on his department’s "radar screen" include: credit scoring as a form of insurance underwriting; the marketing practices of insurance companies selling products to the elderly; the practice of debt cancellation contracting; and the problems small employers face in obtaining health insurance.
Asked to describe his philosophy as a regulator, Gomez said: "I have a real desire to make sure that consumers are protected in all sorts of insurance-related matters. With that said, I also recognize that the industry, if it is going to be a healthy industry, has to be able to honestly resolve issues with this office. A healthy tension has to be maintained between this office as a regulatory body and the industry so that there is dialog and an understanding that issues will come up from the consumers’ side of the fence."
Some who represent consumer interests hope the new commissioner will not only aggressively regulate the industry to protect the people, but also help Wisconsin residents find – and keep – their health care coverage. Although the state’s uninsured population remains low compared with those of other states, the number of Wisconsin residents going without health insurance is increasing.
"Under its new leadership, I hope OCI takes a more proactive stance on health insurance issues and regulations by working with a coalition of health care stakeholders and by formulating policy before problems arise," said Barbara Zabawa, staff attorney for the Center for Public Representation, a consumer advocacy group.
However, representatives of health insurance companies say the OCI already has a track record of balancing consumer interests with maintaining a financially secure insurance market. Joseph Kachelski, spokesman for the Association of Wisconsin Health Plans, doesn’t think that direction should change under Gomez’s leadership.
"It’s pretty clear that Mr. Gomez understands the role of the agency, and sure, there will be issues that we want to work through (OCI) at some point in time," said Kachelski, whose organization represents HMOs. "We don’t have any reason to doubt that we will have a good working relationship with him."
The new commissioner is better known in health insurance circles than other areas of insurance, said Eric Englund, president of the Wisconsin Insurance Alliance, a trade group and lobbying association for property and casualty insurers.
"He’s not someone we’re previously aware of, but having met with him, he seems to be someone who, because of his work for Cobalt, comes to the industry with a fundamental understanding of how insurance operates. He seems to be a quick study by the nature of his educational and insurance background. We’re looking forward to working with him."

April 4, 2003 Small Business Times, Milwaukee

An organization devoted to helping small Wisconsin manufacturers remain profitable is the target of budget-cutting measures proposed by Gov. Jim Doyle and the Wisconsin Department of Commerce (DOC).
The Wisconsin Manufacturing Extension Partnership (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 is matched by the federal government.
Doyle said he did not make the original recommendation to cut WMEP out of the budget, and he is holding open the notion of resuming funding for the program in the future.
"Most of those recommendations came from the individual departments," Doyle told Small Business Times. "There are some good things we won’t be able to do for a while. Maybe we can start again when there is money in the budget."
However, according to WMEP executive director Mike Klonsinski, the disappearance of state dollars will mean a reduction in federal funding as well.
"While we have managed to expand with the same level of state support over the past few years, complete elimination of state support would have severe consequences," Klonsinski said. "The problem is compounded because cuts in state support also turn into cuts in our ability to draw federal funds. Just as we have been successful in leveraging over $2 in federal dollars for every $1 of state investment — the reverse occurs when we lose state dollars."
WMEP operates with an annual budget of about a $7.5 million, of which $2.6 million comes from the federal government, Klonsinski said.
Apart from the $1 million from the WDC, the remainder comes from fees paid for consulting and training and contributions from other organizations, according to Klonsinski.
Klonsinski said he and his staff were examining their options, including a reduction of services to small manufacturers, price increases and a concentration of services in higher density areas.
"With federal budget pressures as they are, a reduction in our ability to bring federal dollars to the state to support our efforts may become permanent," Klonsinski said.

April 4, 2003 Small Business Times, Milwaukee

Saz’s Catering will open a deli in the Honey Creek Corporate Center on Milwaukee’s west side in May. The 2,500 square foot Saz’s At Honey Creek will be located on the lower level of One Honey Creek Corporate Center. Once the fourth office building in the complex is complete, scheduled for later this year, the office park, just off 85th Street along I-94, will accommodate 1,500 people.

The deli, Saz’s first permanent off-site location catering to employees, will offer a variety of sandwiches, Saz’s signature items including barbecue pork, festival favorites mozzarella sticks and sour cream and chive fries, and daily specials.
"The building’s developer, Opus North, approached us because of our reputation, as well as our ability to prepare and package food that is easy to take to offices," said Steve Sazama, owner of Saz’s. "We wanted to expand our catering business into an office environment, and we are excited that our initial offering in this area is with one of the city’s most upscale and successful business parks."

George Webb Corp. has launched a new marketing campaign aimed at elevating its image as "a restaurant that serves quality, classic American food while delivering a dining experience with personality," the Waukesha-based corporation announced.
The campaign was kicked off with a five-week schedule of heavy television advertising that features new creative from Eichenbaum + Associates. Sunday newspaper inserts, in-store banners, placemats and table tents are also part of the marketing mix.
"We spent many months researching, evaluating and delving into the essence of George Webb," said Dave Stamm, president of George Webb Corp. "In the end, we decided to focus on what we do best. We pride ourselves on the high-quality food that we serve our customers and the friendly, comfortable environment of our restaurants and are more than ready for our advertising reflect that."
As part of George Webb’s new positioning, Eichenbaum + Associates has created a series of three, 30-second television spots. In each of the "Get Comfortable" TV spots, the camera focuses primarily on the food that’s being served, while viewers hear the relaxed, everyday conversations between customers.
Starting April 27, Sunday newspaper inserts will also be used to promote George Webb’s monthly menu feature and deliver coupons. The FSI strategy is a departure from the company’s previous reliance on couponing by franchisees in local newspapers.
Eichenbaum + Associates won the George Webb account last fall after an agency review. This year marks the 55th anniversary of George Webb, which has 42 restaurants in Wisconsin.

The North Central Association of Colleges and Schools has awarded Mount Mary College in Milwaukee continuing accreditation, with the next comprehensive visit to take place in 2012-2013.
"Mount Mary has received this highest possible rating consistently since 1926, and it is extremely gratifying to have Mount Mary’s achievements acknowledged in this significant way," said Patricia D. O’Donoghue, president of the college.

A Famous Dave’s barbecue restaurant has opened at 2137 E. Moreland Blvd. in Waukesha. The store is the seventh Wisconsin location for Minneapolis-based Famous Dave’s, which now has more than 40 company-owned restaurants and 33 franchised locations in 19 states and the District of Columbia. It has signed development agreements for an additional 118 franchised locations.
The Waukesha location is a franchise operation owned by the same company that runs the Appleton location.
Famous Dave’s of America Inc. was founded in 1995 and is traded on the Nasdaq exchange (DAVE). It reported 2002 revenue of $90.8 million and expects 2003 revenues to be between $108 and $110 million.

Two doctors affiliated with St. Francis Hospital have opened the South Shore Women’s Clinic in the new Midwest Medical Surgical Center, 2603 W. Rawson Ave., Oak Creek. The doctors, Walter I. Melnyczenko and Anthony C. Pagedas, remain on the staff at St. Francis, 3237 S. 16th St., Milwaukee.

Ellingsen Brady Advertising in Milwaukee has added Web and interactive specialist Jeff Hall of Milwaukee to its team as the agency opens Web Ellingsen Brady. "We have found an overwhelming demand for good Web design and strategy that is unmet for many of our current and potential clients," said Tim Brady, vice president of the agency.
Hall holds a bachelor of science in communication degree with an emphasis in art, from Miami University of Ohio. He also has a bachelor in art in commercial art degree earned partially from the Milwaukee Institute of Art and Design. Prior to joining Ellingsen Brady, Hall worked as a Web consultant for Compuware in Milwaukee and as a freelance Web architect.

Jefferson Wells International has moved its corporate headquarters away from its namesake intersection in downtown Milwaukee – the nearby corner of Jefferson and Wells streets. The company, which provides temporary help to professional services industries, has moved its offices to 200 S. Executive Dr. in Brookfield.
The company, which is owned by Glendale-based Manpower, said the move would allow all departments to work at the same location.
Jefferson Wells International was founded as Audit Force. After changing its name, it was sold to Manpower by founder Michael Harris, who is now building a human resources company, Capital H. Jefferson Wells International employs more than 1,500 people in more than 35 offices throughout North America.

Peter M. Mukahirn and Gregory S. Koehler have launched US Technologies in Greenfield after acquiring the computer and networking data services and Web-hosting and maintenance services of Roman TechNet, a division of Roman Electric Co. in Milwaukee.
Included in the transaction were Roman TechNet’s servers and computer networking equipment. US Technologies will handle warranty claims of former Roman TechNet customers.
Mukahirn, 31, and Koehler, 30, had been IT project managers with Roman TechNet for more than two years and previously owned their own businesses. Mukahirn operated PC Connect while Koehler ran Computers Made Easy.

Beachcomber Salon has opened in the Old Main Street at Pewaukee Lake development at the beach in Pewaukee. The salon is part of the village’s downtown and lakeside revitalization effort. Carole Riley, with more than 20 years of experience in the salon industry, opened the business. It is at 161 W. Wisconsin Ave.

Heartland Information Research has outgrown its space in the Professional Dimensions Women’s Business Incubator, a program of the YWCA of Greater Milwaukee managed by the Wisconsin Women’s Business Initiative Corp. in Milwaukee. Owned by Kate Hill, Heartland Information Research is now at 6434 W. North Ave. in Wauwatosa. The company specializes in economic and market research, business and strategic planning for small to midsize companies, business profitability analysis and internal process review and procedure development. Hill founded the company in 1998. She holds a master of science degree in operations research and a bachelor of science degree in statistics and operations research from the University of Maryland-College Park.

Muth Mirror Systems of Sheboygan has signed a supply agreement with US Auto Parts to provide Signal Mirror components and technology for replacement Ford Expedition mirrors that will be sold under the Kool-Vue brand name.

The Douglas Avenue location of Econoprint in Racine has moved to 214 State St., the corner of State and Main streets.

April 4, 2003 Small Business Times, Milwaukee

President Bush’s proposal to eliminate the federal tax on corporate dividends would have a more widespread impact on privately held companies in Wisconsin than on publicly traded firms here.
While most of the debate on the corporate dividend tax has been focused on publicly held companies, the tax change would affect any entity incorporated as a Chapter C corporation – including privately held companies.
According to the Wisconsin Department of Revenue, 57,796 C-corps filed state tax returns here in the 2001 tax season. But according to the ReferenceUSA business directory, only 81 publicly held companies are headquartered in the state. That means a corporate dividend tax cut would have a far-reaching effect on Wisconsin’s privately held business community, far oustripping the impact on publicly traded companies.
While the Senate in late March moved to trim Bush’s $726 billion tax cut package, investment experts here feel the president’s proposed elimination of tax on corporate dividends would have mixed results locally.
Ken Evason, president and CEO of Jacobus Wealth Management in Wauwatosa, said the tax cut on corporate dividends would do little to stimulate the economy. But its elimination would have marked effects on the owners of C-corps and on Wisconsin municipalities.
According to Evason, the elimination of dividend taxes would change the rules for private business owners interested in taking money out of their businesses.
"When it comes to receiving income, people in my business always ask: ‘How do we do it most tax-effectively?’" Evason said.
According to a tax expert with Wipfli Ullrich Bertelson, the biggest change that could result from the removal of federal tax from corporate dividends would relate to how owners are compensated.
"The first thing that comes to mind for example is what would people who have C-corporations do with their compensation," said Mark Krueger, a tax and corporate accountant with Wipfli’s Milwaukee office in Wauwatosa. "Someone’s wage is taxed; but if there is no tax on the dividend, you may have people who are reducing their compensation to what the IRS would consider to be unreasonably low amounts and taking more compensation in dividends."
But while taking income out of a business as a dividend may become more efficient, compensating owner-managers in such a fashion might be tricky, particularly when a number of owners have different levels of equity.
"If dividends are distributed to all the owners of the company, it might appear fairer if compensation is paid out on a fair and proportionate way based on ownership," Evason said.
Evason said it is unlikely an elimination of taxes on dividends would induce many companies to reorganize as C-corps.
"I can’t see that they would do that," he said. "While the tax code would not favor S-corps anymore, S-corps are not disadvantaged."
But both Evason and Krueger agree that when it comes to initial incorporations, C-corps could become more popular.
"When people are starting corporations, one of the big drawbacks to the C-corp is the double taxation of dividends as well as these penalties for having a holding company or having an unreasonable accumulation of earnings," Krueger said. "But with the elimination of the tax, a C-corp could become a tax shelter."
According to the experts, tax-free dividends would help the owners of private companies with issues including succession planning and business investment.
"In succession planning, we used to go through great lengths so that redemption would be classified as a complete termination of interest so you could get capital-gain treatment," Krueger said. "But if dividends are not taxed, you could have the redemption taxed as a dividend. Now, all of the work we go through to achieve capital gain treatment in a redemption – we may not do that anymore."
Without a tax on corporate dividends, business owners might also be more inclined to invest in their businesses knowing they could quickly get money back out, according to Evason.
"The change would make it easier to take capital out of a business," Evason said. "In a perverse way, that could induce people to put money into the business. They might say, ‘Let’s buy a new truck’ or ‘Let’s put a new computer in.’ The idea is they could pull the resulting additional profits back out."
Evason stressed, however, that the big losers from the removal of taxes on corporate dividends would be municipalities. Wisconsin’s economically stressed local governments would have a harder time raising money on the bond market.
"The big benefit to buying municipal bonds is that tax-free status," Evason said. "If people can get a higher return and still not pay taxes on the dividend, municipalities will have a hard time raising funds for infrastructure."

April 4, 2003 Small Business Times, Milwaukee

The Wisconsin Manufacturing Extension Partnership (WMEP) estimates its economic impact on small businesses in the last fiscal year at $148 million.
According to manufacturers’ reports to WMEP, consulting by the program provided the leads to $98 million in increased and retained sales; $25 million in investments in new plant and equipment; and $23 million in cost savings.
Many Wisconsin manufacturers consider the WMEP to be an investment in the state’s economy.
Ann Pettibone, chief executive officer of Drewco Corp., Franksville, estimates the impact WMEP has had on her company at more than $500,000 in the last calendar year alone.
That does not include cost savings Drewco realized by working with a WMEP partner firm to reduce health care costs or the sales gains that Pettibone said resulted from a new Web site developed by another partner firm.
The company manufactures work-holding devices used in manufacturing. Products manufactured by Drewco are used by major manufacturers to hold gears and other parts during machining.
Pettibone and Drewco, which employs 25 to 30 people, first worked with WMEP on a strategic plan in 1999.
WMEP is involved with Pettibone on implementing a lean culture program, which involves employees in the process of lean manufacturing.
"We started 18 months ago on a scheduling program," Pettibone said. "We market ourselves as having the shortest lead times in the industry, but if you are going to do that, you have to continually have the shortest lead times. WMEP’s work took our throughput from 23 days to nine days. That is a significant marketing advantage and has helped us enormously."
Pettibone said the company would not have been able to retain a consultant to help it implement lean manufacturing principles without WMEP’s help.
"It is very cost-effective — at least half of what it would have cost to get it somewhere else," Pettibone said. "We looked at other non-state programs and other consulting, and also compared it to other state programs. I was most comfortable and most impressed with WMEP. … Without WMEP, we would have gone ahead and tried to implement these things on our own."
Bill Piernot, president of Wiscraft/Associated Industries for the Blind in Milwaukee, said the lean manufacturing assistance he received from WMEP has helped his business survive in a more competitive environment.
Wiscraft is a 501.c.3. non-profit corporation, which employs legally blind persons in machining, assembly, packaging and order fulfillment.
"In today’s market, we have to be competitive with for-profit businesses," Piernot said. "We have seen a significant amount of work go to China, Mexico and other overseas locations, as well as the southern US."
Piernot worked with WMEP to achieve Wiscraft’s ISO 9001/2000 certification, which Piernot described as "the latest and greatest" of the quality process certifications.
"For ISO, WMEP was about 60% (of the costs) of a for-profit consultant," Piernot said. "The quality was actually better. The personnel we dealt with and the way they implemented it was better than we would have expected elsewhere. We actually wound up getting certified two months ahead of schedule."
Pettibone and Piernot are united in their disapproval of WMEP’s being zeroed out of the state budget.
"I think it is a bad mistake for the Legislature to take this money out," Piernot said. "This is an investment in future jobs in Wisconsin. This is not a program that hands out money. Manufacturing in particular is under duress right now with foreign competition."
"WMEP is a very important program for manufacturers in Wisconsin," Pettibone said. "It would be a great loss to lose this kind of highly-effective organization. I guess I would want to tell them that from the standpoint of a businessperson, WMEP is an economically wise investment that is going to have significant returns for the state’s economy."

April 4, 2003 Small Business Times, Milwauke

Twenty-eight southeastern Wisconsin companies are among 115 nominated statewide in the 9th annual Wisconsin Corporate Safety Awards competition. Winners will be announced at an April 28 banquet which is part of the Safety & Health Congress in Madison, presented by the Wisconsin Council of Safety.
"Wisconsin companies recognize the importance of a proactive safety culture," said Bryan Roessler, WCS director. "Safety is a key to their success and impacts the bottom-line, making them more competitive and profitable."
Wisconsin Corporate Safety Award finalists must submit information regarding their organizations’ safety and health procedures, policies and accomplishments. An independent panel of judges, including leaders in business, health and safety evaluates the nominations.
The awards will be presented in 16 categories based on employment size and type of business, as defined by SIC code. Nominees must be headquartered in Wisconsin, or have significant Wisconsin management presence.
The Safety & Health Congress and Exposition runs April 28-30. Information on the event is available online at www.wischamberfoundation.org.

Local safety award finalists are:
Aldag/Honold Mechanical, Sheboygan
Associated Spring-Milwaukee Division, Milwaukee
Banta Specialty Converting, Milwaukee
Borg Indak, Delevan
C. G. Schmidt, Milwaukee
Clean Power, Milwaukee
Electro-Pro, Cedarburg
Geneva Lakes Cold Storage, Darien
Great Lakes Roofing Corp., Germantown
Johnsonville Sausage-Riverside, Sheboygan Falls
Lucas-Milhaupt, Cudahy
Magaw Electric Construction Co., Sturtevant
Magaw Electric, New Berlin
Martin Petersen Co., Kenosha
Molded Dimensions, Port Washington
Northern Electric, Green Bay
Orbis Corp., Menasha Corp. subsidiary, Oconomowoc
Ranch Community Services, Menomonee Falls
Richardson Industries, Sheboygan
Riley Construction Co., Kenosha
Rockwell Automation-Mequon, Mequon
Rockwell Automation-Milwaukee Campus, Milwaukee
Sentry Equipment Corp., Oconomowoc
Sta-Rite Industries, Delavan
Wachtel Tree Science & Service, Merton
Waukesha Engine, Dresser, Waukesha
We Energies, Milwaukee
Western Products, Douglas Dynamics, Milwaukee

April 4, 2003 Small Business Times, Milwaukee

Businesswoman brings together public and private sectors

In an economy where businesses and non-profit organizations are struggling to make ends meet, Teri Sullivan bravely set out to form her own company and help the community at the same time.
The Cedarburg woman is doing just that.
A veteran of Milwaukee’s nonprofit sector, Sullivan formed Sulli & Associates, a for-profit company that builds partnerships that often involve the public, private and nonprofit sectors.
Sullivan teamed with Kim Abler, art curriculum specialist at Milwaukee Public Schools, to secure a $228,000 grant from the US Department of Education for the 2001-2002 school year. With the grant, they partnered with MPS to launch Cultural Partnerships for At-Risk Youth, a unique arts integration program serving middle school students.
"The program has an impact on many different groups, from artists and arts-based nonprofits to educational institutions, teachers, small businesses and, best of all, students," Sullivan says. "It’s a program that generates real benefits for all."
Originally designed by Abler, the project began as a pilot program that reached students in four Milwaukee middle schools: Lincoln Center Middle School of the Arts; Ralph H. Metcalfe K-8 School; Jackie Robinson Middle School; and Walker International Middle School.
Blending community arts partners such as the University of Wisconsin-Milwaukee, Fitzsimonds Boys & Girls Club, Danceworks and Walker’s Point Center for the Arts with those schools, the pilot program achieved measurable results, including:
— Arts-related opportunities for students were increased by at least 75% at Jackie Robinson Middle School and Metcalfe School and by at least 50% at Walker International Middle School and Lincoln Center Middle School.
— Arts were integrated across the curriculum at the schools.
— Arts community organizations developed educational programming that is more responsive to the needs of at-risk students.
The Department of Education deemed the program a success and expanded it for three years with a $1 million grant. The program now serves six middle schools, one K-8 school and one high school, and the project is growing significantly.
"What I do is listen to someone who has an idea. Then, I put the puzzle pieces together," Sullivan says.
The impact of the arts on learning has been documented.
One researcher, James Catterall, noted in his study, Champions of Change: The Impact of the Arts on Learning, that, "students with high level of arts participation outperform ‘arts-poor’ students by virtually every measure …. It makes a more significant difference to students from low-income backgrounds than for high-income students."
The impact of Milwaukee program goes beyond helping low-income children.
The program has created several options for professional development that MPS teachers can use to enrich their skills to develop an arts integration curriculum by attending courses at the Milwaukee Institute of Art and Design’s Creative Educator’s Institute (CEI).
The CEI is an intensive studio residency for teachers promoting the use of new technology in combination with traditional art and design media and practices. Through the Cultural Partnerships program, 24 teachers will be given scholarships to attend the CEI courses.
"It has been great to be able to build a more sustained relationship with teachers at MPS through the Cultural Partnerships for At-Risk Youth. Not only do we give the teachers direct professional development, but we also can work directly with their students," says Josie Osborne, director of outreach at MIAD.
Another benefit is the impact the program is having on arts organizations and artists in Milwaukee, who are given opportunities to expand their services and ultimately to increase their revenues and sustainability.
The program also is helping Milwaukee’s small-businesses, some of which are securing work to help the project.
With its impact on students, teachers, arts organizations, educational institutions and small businesses, one would think the program would be cumbersome to manage. "The money goes to the program," Sullivan says. "With only 5.44% of the funds utilized for indirect costs, you can see the program is more than just a success for the students — it’s a success for the Milwaukee community as a whole."

KeleMarie Lyons is the founder of Pinnacle XL, a management consulting company with offices in Milwaukee and Chicago. She can be reached via e-mail at kelemarie@pinnaclexl.com.

April 4, 2003 Small Business Times, Milwaukee

What’s the best form of advertising there is? Word-of-mouth. There are hundreds of occasions when people ask others — friends, relatives, business associates — for a recommendation for a doctor, a plumber, a hotel, a restaurant or a movie.
If we trust the person making the recommendation, we often act upon the referral. And some lucky business gets one more customer without having to spend a nickel on advertising or promotion.
Word-of-mouth is the only method of promotion that is of the consumer, by the consumer and for the consumer. Every business owner dreams of having loyal, satisfied customers who brag about his business to others. Not only are they repeat purchasers, but they become walking billboards for his company.
Best of all, it’s one of the lowest-cost forms of promotion there is. Keeping in touch with satisfied customers and encouraging them to talk up your business costs relatively little.
Here are five word-of-mouth marketing tips that can help you build a network of referral sources:
1. Get your customers involved – Encourage your customers to become involved in the process of making or delivering your product or service. This personal experience creates a sense of camaraderie and positive feelings that lead them to talk about your business to their friends.
Solvang, Calif., a popular tourist destination, is the home of at least a dozen candy and fudge shops. One of the most successful has the big marble slab where they mix all the ingredients right in the window, where passers-by can’t miss the display.
Many stores put their mixing table in the window. But what makes this store unique is who mixes the ingredients: kids. Children roll up their sleeves, put on plastic mitts, and start mixing and folding the rich chocolate, creamy caramel and chopped walnuts, all spread on a well-buttered table. Guess which fudge shop gets good word-of-mouth (every pun intended) advertising?

2. You scratch my back, I’ll scratch yours – If your business receives referrals from another business, reciprocate. Refer business to the referrer. Or at the very least, offer the referrer a discount price.
My piano tuner gives me 50% off my next tune if I refer business to him. It’s a good deal. I keep the piano in tune for a reasonable price; my friends get their pianos accurately tuned by a professional; he gets additional business from my piano-playing circle of friends.
If your business can’t offer a discount, there may be other ways to reciprocate. Consider a small gift or gift certificate. One client sends out gift certificates to a clothing store for referrals, an appropriate gift since he is in the dry cleaning business.

3. Tell stories – Stories illustrate a specific idea or selling point. A story is an effective vehicle for spreading reputations because stories communicate on an emotional level. If you have a company newsletter or brochure, include a story or two about your company that readers can pass along.
Nordstrom’s reputation for good service is legend. In her book Fabled Service, Betsy Sanders, a former Nordstrom vice president, recounts the story of a woman in torn and filthy clothes who walked into a store one day. The sharp contrast between the disheveled itinerant and the bodacious abundance of the store drew the attention of a local minister who was shopping nearby.
When the bag lady entered the pricey Special Occasions Department, rather than being asked politely to leave the store as the preacher expected, she was greeted warmly and allowed to try on gown after gown. The salesperson exhibited infinite patience as she offered comments on which evening dress was most appropriate, which was most flattering. The old woman left the department store with her head held high, a spring in her step.
The minister was so impressed, she told the story to her congregation. Later, word of the minister’s sermon, "The Gospel According to Nordstrom," was mentioned in The New York Times. It became so popular that her church eventually sold audio tape copies.

4. Teach your customers – Some companies have found that by educating their customers, they can boost their reputation and customer loyalty. Pick a topic relevant to your best customers and make yourself the source of credible, current information about that topic.
One paralegal services firm I worked with used this technique effectively. In every newsletter, the firm included a column on legislation, either pending or passed, that would affect the legal community.
Research discovered it was the most-often read portion of our newsletter. Lawyers, the firm’s primary customers, looked forward to the "news bites" on legislation in their field. It was a great way for the lawyers to remain current, and a great way to keep our client’s name in front of their best customers.

5. Fix problems fast – Nothing grates more than the slow resolution of a problem. Speedy response is vital to prevent negative word-of-mouth from spreading. Negative feelings about a product or service may linger for years.
Think about a restaurant where the food was awful, or you received exceptionally poor service. You probably wouldn’t recommend the place to friends. More likely, you might tell them to avoid it, even years later, because of the problems you had.
Research shows that for every bad experience, we tell four friends. While for every good experience, we tell, on average, just two and a half. When faced with a complaint, the response of your employees should be, "How can I send this person away happy?"
The best form of advertising is word-of-mouth. And certainly the best way to get positive word-of-mouth is by providing a quality product or service that meets the needs of your customers.
But there are ways to encourage your happy customers to spread the good word.

Robert Grede, author of Naked Marketing – The Bare Essentials (Prentice Hall), teaches marketing and entrepreneurial management at Marquette University. Learn more on marketing at www.thegredecompany.com.

April 4, 2003 Small Business Times, Milwaukee