Resting on your laurels will ensure loss of market share
Core Creative
This is the eighth in a monthly series of marketing tips from southeastern Wisconsin.
This month’s advice is from Bruce Bock of Core Creative, of Milwaukee. Each month, the featured firm is also providing a commentary on a specific area of business
marketing.
Regardless of size, companies content to rest on their laurels often lose market share to those executing well-strategized public relations and advertising plans. Like any marketing vehicle, public relations efforts require thoughtful planning to achieve positive results. So it pays to take a good long look at how to get your company’s PR efforts off the ground.
Ask 100 practitioners to define what public relations is, and you’re likely to get 100 different definitions. Textbook definitions describe PR as everything from “the shaping of perception through communication for the achievement of positive goals” to “the art of communication.” Essentially, PR is a way to shine a light on your product, service or issue. But from the viewpoint of a budget-conscious marketing manager, PR is simply this: non-paid media communications.
Why use PR?
Public relations has a number of benefits that make it a highly-effective tool. It is broad reaching and cost effective. Consequently, there are no excuses for your company to be without some realistic, workable PR plans in place.
For example, a single well-written news release can generate feature news coverage and thousands of exposures for your product, service or issue. In addition, PR is an effective tool for delivering multiple, complex messages – something hard to do in one-page ads. Perhaps most important in the ever-changing world of business, PR is flexible in terms of its execution. One feature article placement can be reprinted and used as a direct mail piece, incorporated into a Website, or used as background material for media relations efforts.
When to use PR
The obvious time to use PR is when you need to create awareness for a new product or service. However, PR can also be used to help maintain or increase market share once it has been secured. PR should also be used when credibility or legitimacy is desired. That is achieved via the implied, unbiased third-party endorsement that newsworthy media placements carry. PR is also an effective tool to lessen or manage the effects of unfavorable publicity. Keep in mind that PR doesn’t produce an immediate payoff like direct mail often does.
What do you want to achieve?
Setting realistic goals and objectives is necessary to keep your company’s efforts on track. Review the following:

Industar’s Rao sees new wireless solutions for business
For a technological visionary, Kailas Rao reacts like anyone else when he gets an $80 phone bill for making an international phone call.
“When you travel abroad, you realize the importance of communications,” says Rao, who is on the verge of launching his own digital wireless phone service in Milwaukee.
“The phones don’t work, and when they do work, it’s very expensive,” Rao says.
If all goes according to plan, Rao intends to be at the forefront of a digital revolution that, among other things, will allow a business person to dial four digits to place a call to the office from anywhere in the world.
He predicts that in the not-so-distant future, he will be able to place that same call for $8. Additionally, wireless users will have a single phone device that performs multiple functions, and a single number that follows them wherever they go.
To Rao – a former UWM professor who made his mark by establishing the Computer Bay franchise – those are not far-off visions of the future, but rather are pending realities that he intends to capitalize on.
As he stands on the verge of launching his $160 million Milwaukee-based wireless phone service, Industar Digital PCS, Rao has an impressive list of investors behind him who believe in his ability to deliver on a complex technological vision.
Those investors include Hughes Network Services, a division of General Motors, which is contributing $5 million in cash and $60 million in infrastructure financing to Industar; not to mention Japanese super-bank Kanematsu and cordless phone maker Uniden Corp. – both of which are contributing $5 million to the effort.
Locally, the list of investors includes Fiserv CEO George Dalton, Super Steel Chairman Fred Luber, and baseball commissioner Allan “Bud” Selig.
They’re all banking on Rao’s proven ability to take a budding technology and bring it to the masses the way he did with Computer Bay, a franchise he founded here 18 years ago that sold personal computers to business customers. By the time he sold it in 1992, Computer Bay was a national network of 350 stores in 44 states and Canada. Annual sales for Milwaukee area operations alone were $100 million.
This time, the plan is to take digital wireless technology and create a model here in southeast Wisconsin that can be duplicated again and again.
Same vision, different technology.
“Kailas is a pretty tenacious person,” Dalton said in an earlier published report. “He dreams and see things – and then he makes them happen.”
A revolution is coming
In recent years, technology pundits have predicted the convergence of the Internet, cable television, personal computers and the telephone. Given the magnitude of this coming together of four major mediums, such a day would seem a long way off.
But when it does happen, Rao’s backers are betting that he will be at the forefront of this melding of technologies. That could take shape in the form of a wireless phone capable of performing multiple functions.
“What I’m talking about here with Industar is a killer application,” Rao says from his spartan office in downtown Milwaukee at the corner of Mason and Van Buren. “We’re going to merge the Internet and cable and telephones all into one. It’s going to change the way we do business – how productive and how creative we become. It’s going to be the greatest revolution since the introduction of the automobile.”
When the company begins operation sometime in the first quarter of this year, Industar will start as a digital wireless telephone company, providing the usual array of services one might expect, but with one important twist: Just as he did with Computer Bay, Rao will target business customers, which are a tougher, longer sell, but a very lucrative market once they become established customers.
“We understand business, and how they want to be serviced,” Rao says. “We don’t want to be like the other stores, where it’s just hard retail sales.”
Rao sees vast potential in developing wireless applications for business that improve productivity and translate to the bottom line. Instead of chasing after a market that is already saturated – that being the cellular/digital consumer – Industar is going after business customers by selling wireless as a productivity tool. Over time, this will evolve into more than voice phone service, but data applications, as well.
“Our initial focus will be the phone, but we are going to find vertical applications,” says Rao, a native of Hyderabad, India who came to Milwaukee in the 1970s to teach accounting and business information systems at UWM. “We are going to find a niche in the marketplace. The pie is so large that if you try to be everything to everybody, you are not going to succeed.”
Serving that niche might include giving utility companies the ability to replace their meter readers by placing an automatic device on a water or electric meter which can transmit data automatically. Rao estimates he can do that as cheaply as $5 per home.
On the voice side of the equation, Industar one day will be able to install a cell in the ceiling of an office, enabling callers to dial a four-digit number to reach the office from anywhere in the world.
Or, Rao says users will soon have the ability to type a letter on the computer and then send it via wireless phone.
Rao recalls a meeting he had with Steve Jobs back when Apple Computer was still in its early stages. He told Jobs that the business applications for his personal computer were enormous, demonstrating it by putting a spreadsheet program on the computer.
“I told him, ‘I can reduce your cost of operations by 10 percent before you blink your eyes,'” Rao recalls. “He said ‘Show me,’ and I did.”
It’s that same entrepreneurial spirit that is the brains behind Industar.
Getting it right
In 1996, Rao paid $60 million in an FCC auction for a 30 MHz license for the bandwith to launch his wireless service. Since then, the long and expensive process of establishing the network infrastructure has been ongoing. That means establishing 63 cell sites in the seven-county area of southeastern Wisconsin at a cost of $500,000 per site. Calls are routed downtown to Industar’s switch, which was purchased from Alcatel Communications of France for $15 million.
Rather than begin operations with a service that is not completely bug-free and ready to go, Rao has pushed back the launch of Industar several times – from the end of last summer, to sometime in fall – in order to ensure that the service is seamless once it begins.
Industar will use the digital technology of Time Division Multiple Access (TDMA) for its service platform – the same technology used by AT&T Wireless, with which Industar has a roaming agreement. (Industar customers will note the service has the look and feel of AT&T wireless).
TDMA has advantages over analog cellular technology, including: increased call capacity; higher quality voice transmissions with fewer dropped calls; longer battery life, secure voice transmissions; and, the ability to support enhanced features and more versatile product offerings.
When it comes to building its technical infrastructure, Industar is traveling first-class. Alcatel is the number one switch provider in the world, and Hughes is a leader in base stations. And, then there’s the roaming agreement with AT&T.
“We want to do this one more time,” Rao says of his stated intention to franchise Industar, “and I think we can.
“We have come a long way, and we are close to turning the system on,” he adds. “And, we have placed a big emphasis on putting the right people in the right place.”

The shortage of computer programers and information technology (IT) workers has brought employers to their knees, as today’s IT workers have almost unprecedented clout as they move from job to job in search of ever greener pastures.
“If a typical IT person is making $50,000, and, all things being equal, if they can go somewhere and make $60,000, they will go to that place and make more,” says Bob White, president of Impact Solutions, which recruits IT workers.
“In this job environment, people have many opportunities,” adds Marlene Haigh, a Racine human resource specialist. “There is always someone out there trying to attract your people away.”
Back when employers were calling the shots, White met with companies and determined their needs, and then came up with people to fill those positions. Not anymore. Now White tries to find workers with exceptional skills, determines what they are looking for, and then finds a home for them.
“It’s become a candidate-driven market instead of a company-driven market,” White says.
According to a recent survey by RHI Consulting in Milwaukee, average annual turnover within a typical IT department is 19%, with many companies reporting annual attrition rates of 25% or more.
White says IT employers must move to streamline their hiring processes, as most good candidates are lost because a company didn’t move fast enough.
“When you take somebody in this field who is good or exceptional, their shelf life might only be two weeks,” White says. “I talked to one guy in the morning, and three phone calls later, he was hired that afternoon. When someone is willing to make a change, employers have to move very quickly to hire that person.”
In another case, one company made an offer five minutes before a competitor made an equal offer. The first company got the employee. Small to mid-sized companies can use their size and flexibility to their advantage, White says, as they can generally move faster to hire an IT candidate.
They want to be challenged
By the time an existing employer comes back with a counteroffer to an IT employee who has received a job offer, it’s almost always too little, too late, White says. More often than not, the reason the IT worker is leaving is because he was not satisfied with the projects he was working on, or he was not kept up to date with new technologies because the company was not willing to spend money on it.
Troy Wyss left Fiserv, Inc., to work for M&I Data Services two years ago after 17 years with the Brookfield financial services data processing company. The 38-year-old started with Fiserv in 1980 as a programer, and was fortunate in that he was always able to move into new areas when he would become bored with a particular technology. But when he was moved into a new position in 1996 that examined new technologies, it broadened his horizons.
When Wyss felt Fiserv was not moving fast enough on investing in technologies for alternate platforms, he left for a job with M&I.
“I didn’t feel that they were going to move on things immediately, and then I heard of another job where they were already using the technology I was exploring,” Wyss recalls.
But after five months with M&I, Wyss was offered more money to return to his old employer, along with the ability to pursue the leading-edge technologies he had thought the company was dragging its feet to get.
“I am much more comfortable than when I left that I made the right decision,” Wyss says of his return to Fiserv. “In my field, the ability or the opportunity to work on leading-edge technologies is essential to motivation and retention.”
The unfortunate reality is, most employers tend to look at technology expenditures from a bottom-line standpoint, White says. When they fail to make a capital expenditure for cost reasons, they risk losing dissatisfied IT workers down the road.
“It becomes more a matter of being more in tune with the employee’s needs, what would make them happy as far as providing them with the tools to get the job done,” White says.
“The whole thing that is driving this is, if they are in a situation where they don’t like their manager or the technology they work with, they can change [jobs] relatively quickly assuming they are a good employee and have good skills,” White adds.
After he paid for the education and technical training of an employee, Rick Schmaelzle of PrismaGraphics Inc. saw the employee leave shortly thereafter for greener pastures.
“If I had to do it again, I’d probably be less generous,” says the president of the specialty printer at 24th and Clybourn in Milwaukee. “I’m not down on training people, but there are just too few people in that business. Loyalty is questionable. We make the investment, and then they find out that they have some skills that are very marketable.”
Be flexible
Deluxe Electronic Payment Systems in Glendale is retaining more of its 1,200-employee workforce by being more flexible and listening to what its information systems workers are saying in terms of their individual needs, says vice president of human resources Jill Zoromski. Today’s technology workers are just as interested in quality of life concerns as they are making more money, she maintains.
“When people come to me and say ‘I can get 30% more from a consulting firm, with benefits,’ we’ve been winning that with the quality of life argument,” Zoromski says. “In Wisconsin, we have a very family-oriented community, and I think people like being here and not traveling all of the time.
“There’s an extreme amount of flexibility here,” Zoromski adds. “Instead of having a one-size-fits-all approach, we have done a good job of listening to what people need in terms of flexible starting times, changing career paths, or being exposed to new company initiatives. A lot of it has to do with communication. It’s a matter of having your managers talk to their people.”
That type of approach has helped stem turnover at Deluxe, which also has operations in located in New Berlin. In April 1997, Deluxe had 44 people leave the company. One year later, in April of 1998, eight people left. In March of 1997, 43 people left the company compared to eight people who left in March of 1998.
“To say IS people don’t have any loyalty, who do you think started that?” Zoromski asks. “It was stuff like corporate downsizing at the drop of a hat. And, you’re not going to win the battle where the company says ‘Have my values.’ It is really difficult to change somebody’s values, but it is much more achievable to ask somebody what they want, and then deliver on that.”

The building has both a 6,100-square-foot lower and first floor level. Construction has commenced and completion is scheduled for spring.
PIC Wire & Cable, a division of the Angelus Corp., has broken ground at the site of the firm’s new corporate headquarters on Corporate Circle in the new Sussex Corporate Center Industrial Park.
DBI, Inc., a Pewaukee-based design/build firm, will manage the construction of the building. The 12,000-square-foot facility will house offices, production, and warehouse.
PIC Wire & Cable, which was founded in 1970, designs, manufactures, and supplies electronic cable and cable assemblies engineered for the aviation industry.
Fleming Companies, Inc.-Milwaukee Division has selected MSI General Corp., of Oconomowoc, for the design and construction of a new 54,265-square-foot Sentry Food Store to be located at 741 S. Taylor Dr. in Sheboygan. The new store will be the first Sentry Foods Store in Sheboygan. It will be a part of the retail shopping center, Pine Tree Plaza, which is currently being developed by Pine Tree Commercial Realty of Lake Bluff, Ill.
– MSI General will also handle design and construction of an approximately 1,900-square-foot addition and major remodeling to the Sentry Foods Store located at 6700 W. State St. in Wauwatosa.
– Fleming Co. is also currently renovating the Supersaver store located at 4275 S. 76th St. in Greenfield through MSI General. The renovation consists of a major interior remodel and the addition of two entrance canopies. The Supersaver store remains open throughout the renovation work.
– MSI General has completed the exterior renovation to its office facility, MSI General Business Center, W215-W225 E. Wisconsin Ave., near Oconomowoc. The exterior renovation consisted of a new overhead canopy, new windows, a patio with a fieldstone half wall and columns supporting an overhead trellis, new landscaping, parking lot and flagpole.
The office facility, formerly known as the Oak Del Business Center, is home to Space Innovations and MSI General. MSI General moved into the building in 1970 as a tenant. In the late 1970s, Benchmark Leasing, an affiliate of MSI General, purchased the building. Through the years, MSI General has acquired additional space in the building.
T-3 Group, of Milwaukee, has contracted to build the new 16-unit addition to the Nicolet Parc Condominiums in Glendale. The two-bedroom units will be completed in spring.
– T-3 Group has signed a design/build contract for a new Jimmy John’s restaurant. The new sandwich shop will be its first store in the Milwaukee area and will be located at 3129 N. Oakland Ave.
– T-3 Group has also contracted to provide interior of the common areas of the County Building in Schlitz Park. This work is currently in progress with completion scheduled for this month.
– T-3 Group has contracted with Dollar-Rent-a-Car for the exterior renovation of its facility building located at 4939 S. Howell.
The Jansen Group, of Milwaukee, was recently selected to complete construction projects for the following companies:
Hartford Recreation and Family Aquatics Center, Hartford – This 56,000-plus-square-foot masonry construction is designed to blend in with the historic downtown district. The center will be open to the public and includes two pools, a gymnasium, classrooms and offices. Construction is expected to be completed in January 2000.
Schauer Arts and Activities Center, Hartford – This project, located at 147 N. Rural Rd., consists of a 35,000-plus-square-foot renovation. The project includes the renovation of an existing industrial facility. The construction utilizes heavy timber construction. The center will include a 600-seat theater, art gallery and area for the school of the arts.
John Michael Kohler Arts Center, Sheboygan – This project, located at 6089 New York Ave., is a multi-discipline arts center incorporating state-of-the-art systems for performances, music, education, dance and visual arts. The project includes the remodeling of existing historical facility to improve use of space, plus the addition of approximately 40,000 square feet which will contain a storage area, gallery, studio and performance space.
Nowakowski, Franklin – The Jansen Group completed construction of a 33,000-square-foot metal fabrication facility in August. The Nowakowski facility, a masonry building, is located at 9909 S. 57th St.
St. Elizabeth Ann Seton, New Berlin – Jansen was chosen to complete construction of a 17,000-square-foot addition to the St. Elizabeth Ann Seton’s existing church.
Troyk Printing, Franklin – Jansen began construction in August of a 33,000-square-foot facility to house Troyk Printing, custom screen printing and plant offices. The new facility, located in Franklin Industrial Park, is slated to be completed at the end of this month.
Cliff Bergin & Associates, Inc., Mequon – The Jansen Group has been chosen to complete construction of a 20,000-square-foot building for Cliff Bergin & Associates to be used for plumbing, heating, warehouse and storage. The construction is all masonry and concrete floors. The project is expected to be completed in February.
McCloud Construction, Inc., of Brookfield, has completed work on a 2,300-square-foot addition in the Town of Brookfield. The space, expanding WFS, Inc., is in the Westown Professional Building at 21675 Longview.
– McCloud will build a 4,950-square-foot Hollywood Video on Oakland Avenue in Shorewood. Construction was to begin this month, with a March completion planned. The property is owned by Boulder Venture of Milwaukee. DJR Architecture is providing architectural services.
Gerald Nell Inc., Waukesha, has been chosen for the following design/build projects:
– A 14,000-square-foot manufacturing and office addition to PowerTest Inc., Menomonee Falls;
– A 30,000-square-foot multi-tenant office and industrial building in the Silver Spring Corporate Center, Menomonee Falls, for Pak Investments;
– A 53,000-square-foot multi-tenant office and industrial building in the Franklin Industrial Park for Stout Development;
– A 9,000-square-foot office build-out for F.M. Marketing, Pewaukee;
– A 15,000-square-foot office remodeling project for Shorewest Realty – Mequon office;
– Floral, beverage and produce remodeling for Grasch Foods, Brookfield;
– A 45,000-square-foot multi-tenant office and industrial building for Sunset Investment Co., located in the Gateway West Industrial Park, Brookfield.

In today’s wireless world, the competition is tighter and the enhancements of digital mean better technology and service – and more confusion because the choices are no longer so simple.
Ask Oz
Get some real answers to your questions about wireless options. Here are some questions to help you assess your needs:
1. What is your primary reason for wanting a wireless phone?
The type and style of use will be a large factor in determining which carrier and plan is appropriate for your needs.
2. Will the majority of use be local or out-of-town?
This question addresses the biggest change in the wireless industry: the improvement from cellular to digital. The basic differences between digital and cellular lie in the technology each uses. Digital technology provides a clearer, sharper voice transmission that is as dramatic as the difference in sound quality between cassette tapes (analog) and compact discs (digital). Digital also has enhancements in power requirements, reliability, accessories and features, as well as in privacy and security.
Simply put, analog services have only one remaining advantage over digital: availability. For the moment, however, digital penetration is more concentrated in metropolitan areas. Users also wanting service in rural areas will need dual-mode phones capable of functioning on both digital and cellular networks. The time frame for the increased penetration of the digital networks into rural settings is estimated between 18 and 24 months.
3. How many minutes will you use each month?
Users who spend a great deal of time on their phones may want to consider requesting a contract. Several companies offer business plans that have reduced charges for high-volume use. Some users have found advantages in pre-purchasing their minutes each month.
4. What will your peak use time be?
Many companies charge a higher per-minute rate during high-usage times of day and lower rates during evening and weekend hours. Don’t let the house drop on you here. If you have a high-usage rate plan, your discounted or free minutes may only count during off-peak times.
5. Find out which features you want and what the costs will be.
Take a look at available features. Many companies offer plans that include various accessories with the initial cost of your phone. Or you may want to indulge yourself. PrimeCo has a phone that can play a tune, give stock quotes or even a joke of the day. Nextel has Direct Connect, allowing you to instantly connect with one or all of your co-workers with the push of a button. Sprint’s Touch Point phone – a day, address and phone book in one – lets you point, click and connect.
Pay attention to the men behind the curtains
Don’t get carried away in the maelstrom of fancy offers for free phones and great-sounding prices that will get you and your little dog, too. Somewhere over the rainbow there may be a place where there really are such things as “free phones”; here it’s not going to happen. Even ruby slippers can’t get you out of the contracts that may accompany such deals.
Other things to watch out for are activation fees, network surcharges, monthly administration fees, and with cellular or dual-mode phones, the costs of roaming.

Strauss brothers target end-users with case-ready veal products
Walk along the meat counter of any grocery store and you’ll see plenty of beef, chicken and pork. The veal selections, however, probably won’t catch your eye. That is, if the grocer even has any veal displayed.
Randy and Tim Strauss are out to change all that. And in the process, they’re changing the way their 62-year-old Franklin-based Strauss Veal is doing business – and, possibly, how the entire meat industry does business.
Strauss who?
Unless you’ve seen its logo on an upscale restaurant’s menu, or have seen a semi-trailer with the words “Strauss Veal” emblazoned upon it heading down I-94, you might not have known of the firm, or that it’s in the top-three in volume among the nation’s 17 veal processors. Since its founding in 1937, Strauss Veal has been a low-key operation, originally operating out of Milwaukee’s Menomonee Valley and then relocating to South 60th Street, just south of Ryan Road, in Franklin.
“We’ve been a low-key business. But now we need to be more consumer-oriented,” says 33-year-old Randy Strauss, who with his brother Tim, 31, serves as co-president of the family-owned firm.
That change in direction is being carried out through this month’s introduction of case-ready veal products, complemented by a private-label line of gourmet sauces.
“Our new product line will revolutionize how veal is perceived and used,” Tim Strauss says. “We’re making it simple and convenient for anyone to prepare a delicious meal with veal by including cooking directions on our packaging, and offering the best-tasting ready-to-use sauces available.”
It’s an entirely different focus than their grandfather Milton Strauss had for the company in its early days. But it’s also a natural progression, note the younger Strausses, who are in the process of taking ownership of the 100-employee firm from their father Richard Strauss.
When Milton Strauss ran the firm, his customers primarily bought dressed carcasses. The local meat market or grocery store butcher would then cut up a carcass, displaying various cuts in his meat case.
By the time Richard Strauss was running Strauss Veal, buyers were asking for parts of the carcass, which they would then divide.
Now, portion control is the name of the game, with buyers, particularly restaurants, wanting individually-packaged servings of veal rather than, say, a veal leg.
“No one but us has to do anything now,” says Randy, whose first job with the firm was unloading calves. “We do more cutting than in the past. It makes it a lot easier for the restaurants. No one has to do anything but us.”
And now, the Strauss brothers hope, grocery-store owners will enjoy that same convenience. The Strausses say there’s an incentive for the stores to carry the case-ready products. Meat that’s cut up, wrapped and displayed at the local store has a shelf-life of two to three days, and it’s labor-intensive. The case-ready Strauss Veal products, however, have a shelf-life of 21 days, due to the way the product is handled at the Franklin plant and how the portions are hermetically sealed.
“The grocer doesn’t have to worry about taking a loss on reduced-priced meat that’s at the must-sell date,” Tim Strauss says. “He doesn’t have to worry about turning a $7 meat sale into a $2 sale.”
And consumers will be demanding more of the type of product, the brothers believe.
“We seen an incredibly rising demand for meat that is not cut at the store,” Randy says, noting consumers’ fears of foods which might become contaminated. “The question is, How do we present it?”
How they are presenting it is both upscale and consumer-friendly. While the black-and-red packaging is intended to position the meat in an elegant fashion and to make the product stand out among the myriad offerings in meat cases, the step-by-step cooking directions, seasoning tips and accompaniment suggestions are intended to make the products appealing to anyone.
“Veal is an anonymous item,” Tim says. “If it’s not on your grocery list, you don’t see it in the meat case. People don’t even know it’s there; we’re out to change that. With our case-ready products, you’re sure to see it. Will you buy it? Maybe. The chances are now better than before that you will.”
The products include osso buco, chops, scaloppini, shoulder steaks, stew and ground veal. To complement those cuts, the Strausses are selling masala, tomato basil and picatta sauces.
“Our goal with this new case-ready product line is to dispel certain consumer misconceptions,” Randy says. “We’re doing this to surprise the multitude of home cooks who may never have given a second thought to veal as part of their everyday menu planning. Yes, we want existing veal-consumers to buy more. But we also want others to try it.”
The sauces to accompany the veal are made to the brothers’ specifications. “We eat veal all over the world,” says Tim, noting the firm’s international sales. “We’ve tasted the best recipes, and we feel are sauces reflect the best.”
The venture into case-ready distribution is a “no-lose” proposition, the brothers believe.
In the Milwaukee area, some Pick ‘n’ Save stores, Sendiks and Grasches will be carrying the products initially. And Wal-Mart Supercenters is interested in test-marketing the products in some of its grocery sections.
While Strauss Veal is one of the nation’s largest veal processors – it handles 300 to 500 calves per day – the brothers have also seen market conditions change. As with many other products today, veal is becoming a commodity impacted by competitive market pricing. By creating a branded consumer-ready product, Strauss Veal will be better able to control profit margins.
Along with the sales and marketing that the firm is undertaking, Tim and Randy Strauss expect the new veal products to garner considerable attention in newspaper and magazine food sections, which could further drive demand.
“This will get attention; there’s nothing like this,” Tim says, noting that some of the firm’s client restaurants are already asking for bulk orders of the Strauss sauces.
In their 48,000-square-foot facility in the Franklin Industrial Park, the brothers have created a “clean room” for packaging the case-ready products. That room now includes one packaging machine for modest production volume.
They don’t expect to be using that space for long. “My prediction is that in a year we’ll be breaking ground for an addition to handle this. And that, in two years, we’ll be going 24-hours-a-day on this line of products,” Randy says, noting that the operation is “already busting at the seams.”
The brothers are so confident that the new line will be a success that they are not worrying about allocating resources for its production. Rather, they’re worried about how they will keep up with the expected demand.
“The fear is that so many people will like it so fast that we’ll have to worry about how to handle the demand,” Tim says. Part of that worry concerns the availability of the foreign-made equipment that packages the case-ready meats.

Robert A. Ornst Jr. has been appointed chief executive officer of Selzer-Ornst Co., a Wauwatosa-based construction services firm.
Ornst succeeds his father, Robert A. Ornst Sr., who remains chairman of the board.
Ornst Jr. has been president of the company since 1993 and is the third-generation of the family to run the firm.
Burt Trouteaud has been appointed as the executive director of the Glendale Association of Commerce. He became active in the early 1980s as a business member of the association, then known as the Glendale Business Council.
Trouteaud has volunteered the last 12 years as the association secretary and editor-in-chief of the Community Development Authority. He retired from his own manufacturing business in 1995.
Gary L. Hanneman has been named vice president-commercial banking at Johnson Bank.
Most recently, Hanneman served as vice president-corporate banking with Associated Bank in Milwaukee. Prior to that, he was with Bank One, Racine, also as a vice president.
A resident of Racine, Hanneman graduated from the University of Wisconsin-Madison with a bachelor of science degree in finance and accounting. He currently serves as a member of the Racine Founders Rotary Club.
Milwaukee Protestant Home has announced the appointment of a new team of vice presidents. Marge Gozdowiak has been named vice president of health services, Ed Hida has been appointed vice president of residential services, David Hopkins has been named vice president of finance/chief financial officer, and Phyllis Petri has assumed the role of vice president of human resources.
Michael DiCastri has joined Johnson Trust Co. as assistant vice president-senior trust operations analyst. DiCastri has four years of trust experience, most recently with M&I Trust where he was a mutual fund trader. A graduate of the University of Wisconsin-Milwaukee, DiCastri received his master’s degree in economics. He resides in Milwaukee.
Barbara Armstrong has joined the Milwaukee office of Kahler Slater Architects as director of operations. She holds a master’s degree in architecture from the University of Wisconsin-Milwaukee School of Architecture & Urban Planning. Prior to joining Kahler Slater, Armstrong was quality improvement officer for YW Works at the YWCA of Greater Milwaukee.
McGlinchey & Associates, Brookfield, has promoted Melissa McGlinchey, CBC, to vice president, client services. McGlinchey joined the marketing communications agency in November of 1992. She holds a degree in journalism from the University of Wisconsin-Madison. An active board member and treasurer of Milwaukee’s BMA (Business Marketing Association) chapter, McGlinchey will serve as chairperson to its 1999 Bell Awards competition.
Stephen Rudolph has been named vice president-corporate sales and service at Associates for Health Care, Inc., in Brookfield. Previously, he was vice president-special projects for AHC. He is a fellow of the American College of Healthcare Executives.
IVM, Inc., formerly Video Wisconsin, of Brookfield, has announced the promotion of Patrice Nault to vice president of operations, and the formation of a new management team for the purposes of guiding the corporation into the future. The leadership team is made up of John Barto, president; Craig Swartwout, vice president of technology and development; Angie Haber, vice president of sales and marketing; and Nault.
Sal Corrao has been named general manager of the Russ Darrow Superstore at 8380 N. 76th St. in Milwaukee. The Superstore handles Pontiac, Nissan, Isuzu, and KIA automotive lines. Corrao and his wife Patricia reside in Milwaukee.
Cindy Barber has been named assistant vice president-private banking officer at Johnson Bank. Barber will be located at the main office in Kenosha. She joined Johnson Bank in 1978, holding various positions. Most recently, she was assistant vice president-personal banker/business development. Currently pursuing a business administration degree at Carthage College, Barber resides in Kenosha. She serves on the board of directors of Women’s Horizons, Kenosha Night at the Brewers, and is a member of the Kenosha West Rotary and the Kenosha Women’s Network.
William Menzel has joined NCL Graphic Specialties, Inc., Waukesha, as vice president of human resources. A Vietnam veteran, Menzel is a graduate of the University of Wisconsin-Milwaukee and a resident of New Berlin.
The law firm of Godfrey & Kahn, S.C., announced the election of Carol A. Gehl and Daniel B. Geraghty to become shareholders effective Jan. 1. Gehl has been a member of the Securities team since 1992 and Geraghty with the Tax and Employee Benefits team since 1994.
Bernard E. Adee has been elected to the board of directors of Ridgestone Financial Services, Inc., and its subsidiary, Ridgestone Bank. He retired in Sept. 1998 as a first vice president of Robert W. Baird & Co. in Milwaukee. Previously he spent more than 25 years as a bank regulator and as a senior executive in several Wisconsin bank holding companies.
Bonnie Thielecke has joined EPIC Staff Management of Milwaukee as human resources director. EPIC Staff Management is a professional employer organization (PEO) that provides medium-sized and small companies with human resources, safety, payroll, benefits and training services that range from telephone support to comprehensive solutions. She is a graduate of Cardinal Stritch College with a bachelor’s degree in business administration. Thielecke is a member of the society of Human Resource Management and the Human Resources Management Association of Wisconsin. She is a past board member of Milwaukee-area Big Brothers and Big Sisters.
Gordon Pierce, of New Berlin, has been promoted to vice president of the Milwaukee-based office of the architecture/engineering firm of Hammel Green and Abrahamson, Inc. (HGA). Pierce leads HGA’s Great Lakes Office Engineering department. He holds a bachelor of science degree in civil engineering from California State University, San Diego, and an associate of arts degree in architectural structural technology from Madison Area Technical College.
Raymond Sachs, of Wauwatosa, has been promoted to associate vice president at the Milwaukee-based office of Hammel Green and Abrahamson. Sachs is a member of HGA’s architectural staff, serving as a project manager. He holds a bachelor of science degree in architectural engineering from Milwaukee School of Engineering.
Jeffrey Raasch, of Mequon, has been promoted to associate vice president at the Milwaukee-based office of Hammel Green and Abrahamson. Raasch is a member of HGA’s architectural staff, serving as a designer. He holds a master of architecture degree and a bachelor of science degree in architecture from the University of Wisconsin-Milwaukee.
Timothy J. Gasperetti has been promoted to the position of vice president of construction services at Irgens Development Partners, in Wauwatosa. He has been with the firm since 1990.

Donna Wolf Steigerwaldt, chairwoman and CEO, Jockey International, Kenosha, $525 million;
Ruth Michels, CEO, Michels Pipeline Construction, Brownsville, $140 million;
MaryJo Cohen, president, National Presto Industries, Eau Claire, $108.6 million;
Helen Gaudiosi, chairwoman, Dawes Transport, Milwaukee, $88,685,00;
Valerie Carter, president and CEO, V&J Foods, Milwaukee, $70 million;
Kelly Murphy-Simon, president, Rollette Oil Co., Janesville, $57 million;
Jane Bierman, president, Lincoln Wood Products, Merrill, $50 million;
Susan Lipp, president, Full Compass Systems, Middleton, $40 million;
Marilyn Mueller, president and CEO, Mueller Graphic Supply, Milwaukee, $33.4 million;
Marie Blakeman, vice-president, treasurer, Nor-Lake, Hudson, $31 million;
Carol Ann Schneider, chairwoman and CEO, SEEK, Grafton, $31 million;
Susan Marks, CEO, president, ProStaff, Brookfield, $23.1 million;
Maryjoy Madrigrano, president, Beer Capitol Distributing, Milwaukee, $23 million;
Darlene Ballweg, president, Ballweg Chevrolet, Oldsmobile, Pontiac, Buick, Sauk City, $22 million;
Mary Cavicchi, president, CEO, MJ Care, Racine, $20 million;
Beth O’Malley, president, O’Malley Oldsmobile, Cadillac, Honda, Suzuki, Wausau, $20 million;
Sandra Fuchs, president, Fuchs Holding, Sauk City, $19,322,508;
Monica Garbo Principe, president, Garbo Motor Sales, Racine, $18.9 million;
Nancy Frank Osterman, co-president, Mary S. Frank, vice president, A.D. Schinner Co., Milwaukee, $18,770,263;
Lucia Schaub, president, Security Travel, Sheboygan, $17,904,540;
Marsha Lindsay, president, Lindsay, Stone & Briggs, Madison, $17.2 million;
Doran Gendelman, CEO, Interplan, Milwaukee, $16.9 million;
Carolyn Victor, CEO, Fedco Electronics, Fond du Lac, $16,441,144;
Theresa Grandlic, CEO, Joe Van Horn Chevrolet, Plymouth, $16,276,253;
Karen Isaacson, president, Maryjoy Madrigrano, secretary, vice-president, Triangle Wholesale Co., Racine, $15 million;
Mary Ennis, president, Frontier Motor Cars, Milwaukee, $15 million;
Kristine Sexton, president, Directions, Inc., Neenah, $14 million;
Joan Schaupp, majority stockholder, vice chairman, LCL Transit Co., Green Bay, $13 million;
Karin La Freniere, president, Quality Customs Broker, and Quality Freight Services International, St. Francis, $12,658,945;
Rebecca Naugler, president, Kathy Olson, vice president, Elizabeth Ranger, vice president, Goli’s Avenues of Travel, doing business as Carlson Wagonlit Travel, La Crosse, $12,547,141;
Cynthia Heberling, CEO, Custom Computer Systems of Wisconsin/Inacomp, Madison, $12.5 million;
Leota Ester, president, Ester Leota Employment Specialist, doing business as Landmark The Staffing Resource. Appleton, $12.5 million;
Carlene Kolbe, president, owner, The Veltra Corp., Racine, $12.4 million;
Mary Stanek Wehrheim, president, Stanek Tool, Brookfield, $12 million;
Nancy Nell, president, Nan Sea Enterprises of Wisconsin, Cedarburg, $11,720,000;
Nancy Zieman, president, Nancy’s Notions, Beaver Dam, $11,719,769;
Miriam Meyer Allison, president and CEO, Sunstone Financial Group, Milwaukee, $11,612,000;
Mary Schmidt, Schmidt Engineering & Equipment, New Berlin, $11.3 million;
Barbara Thompson, president, Miller & Thompson Forwarding, Milwaukee, $11 million;
Donna Kolocheski, president, Kay Beer Distributing, DePere, $10.9 million;
Darlene Thurley, president, Plainfield Trucking, Plainfield, $10.5 million;
Susan Horn, president, Travel Associates, Milwaukee, $10 million;
Isabelle Polacheck, president, Reliable of Milwaukee, Milwaukee, $10 million;
Jean McKey, president, McKey Perforating, New Berlin, $10 million;
Ruth Metz, president, Animart, Beaver Dam, $10 million;
Susan A. Kirsch, chairwoman and CEO, E.G. Artz, Brookfield, $9,854,098;
Elizabeth Little, president, Barbara Lock, vice president, V. Richard’s Market, Brookfield, $9.6 million;
Deborah Teglia, president, Paving Mix and Construction, Oak Creek, $9.5 million;
Elizabeth Pulitzer, president, XMI Corp., Chippewa Falls, $9 million;
Norma Knollenberg, president, Top Brands, Oshkosh, $9 million;
Catherine Johnson, president, Sanborn Tube Sales, Waukesha, $9 million.

The Milwaukee Economic Development Corp.’s (MEDC) Loan and Finance Committee has approved six loans, including one for an Ace Hardware store on West North Avenue in Milwaukee.
Cunningham’s Ace Hardware received a $300,000 MEDC loan to convert the former Uptown Shop-Rite grocery store at 5020 W. North Ave. into a 13,300-square-foot Ace Hardware store in the Washington Heights neighborhood.
Members of the Cunningham family will offer hardware products and repair services that appeal to the owners of older homes surrounding the store.
The business expects to employ four full-time workers and will add seven part-time employees.
Lincoln State Bank is also participating in the $1 million project.
MEDC’s loan committee also has approved financing totaling $1,119,900 that will leverage $4.3 million in investment in other projects.
Gilo Photography, Inc., received a $122,000 loan from MEDC to assist with a move to 621-23 S. Second St.. The new location is a two-story building that was completely renovated to accommodate the residential and business needs of the company.
Jane and David Geilenfeldt started Gilo Photography, Inc., in 1985. The business specializes in high-quality commercial and advertising photography for advertising agencies and corporations around the state.
The company employs two full-time people and expects to add one employee full-time to accommodate growth.
Participating in the $306,000 project is Layton State Bank.
St. Paul Veterinary Clinic, located at 2620 W. St. Paul Ave., has been operating since 1986 at that site. The business has no parking and the practice is at capacity in its current space. The owner, Marie Losch, will use a $204,000 MEDC loan to construct a new 5,700-square-foot veterinary clinic at 431 N. 27th St., which is around the corner from the current business location.
The new site will have an extra 2,700 square feet of clinic space over its present 3,000 square feet of rental space. The business will double the number of operating rooms, provide more kennel space and eliminate current parking problems by adding space for 40 parking stalls. The company expects to add five full-time jobs to its staff of 16 employees.
Tri City National Bank also participated in the $540,000 project.
Old World Brewery received a $300,000 MEDC loan. The opportunity arose to purchase a new building for the business in City Hall Square at 769-71 N. Water St.
Old World Brewery will be a 225-seat restaurant and brewpub. The three-story building has 24,000 square feet of space.
Lincoln State Bank also participated in the $1,510,000 venture.
National Baking Co. Inc., received a $131,000 MEDC loan to finance expansion at 3200 S. 16th St. and at a second retail location at 12430 W. National Ave. in New Berlin.
MEDC had originally reviewed a loan for the company’s operation on South 16th Street in November 1997. The company re-evaluated its original plans and has decided to expand at both locations.
The company expects to add two full-time employees to its current staff of 26 full-time and 17 part-time workers.
Firstar Bank participated in the $328,000 amendment of the project.
Lakefront Brewery, Inc., received a $62,900 loan amendment from MEDC for improvements made to the 23,000-square-foot City Forestry building at 1872 N. Commerce St. along the Milwaukee River on the north edge of downtown Milwaukee.
Lakefront Brewery produces approximately 3,000 barrels of beer annually. The facility improvements will help give the business more visibility with the public, enhance tours of the facility and add exposure to Lakefront Brewery products.
The company has six full-time employees and expects to add three more.
Park Bank participated in the $628,606 amendment of the project.
SBA loans
The following loans guarantees have been approved by the U.S. Small Business Administration for Wisconsin during November:
Amundson Insulation, 8667 N. 107th St., Milwaukee 53224, $98,000, Ozaukee Bank;
Animal Emergency Center, 7320 W. Florist Ave., Milwaukee 53218, $557,000, Wisconsin Business Development Finance Corp.;
Burger Boy, Highway 33, Port Washington 53074, $300,000, Firstar Bank;
Dave Heather Oshkosh, 425 Fond du Lac St., Waupun 53963, $740,000, State Bank of St. Cloud;
Five Star Fitness & Fun, 125 Pine St., Lake Mills 53551, $40,000, The Greenwoods State Bank;
Heus Manufacturing Co., W155 Kiel Rd., New Holstein 53061, $500,000, National Exchange Bank & Trust;
HIE Inc., 4230 W. Loomis Rd., Milwaukee 53221, $100,000, Bank One;
Himalaya Enterprises, Highways 31/50, Kenosha, $576,000, Racine County Business Development Corp.;
HT Enterprises, 139 E. Sheboygan St., Campbellsport 53010, $1 million, National Exchange Bank & Trust;
Lockhart Enterprises, N6424 Highway 12/67, Elkhorn 53121, $342,000, Firstar Bank;
Matco Tools, 7557 S. 68th St., Franklin 53132, $55,000, Associates Commercial Corp.;
MHZ USA, S83 W18346 Saturn Dr., Muskego 53180, $110,000, Citizens Bank of Mukwonago;
Midwest Medical Claims Service, 5225 N. Ironwood Rd., Glendale 53217, $20,000, Norwest Bank;
Racine Auto Body, 7300 Washington Ave., Mt. Pleasant 53406, $504,000, Racine County Business Development Corp.;
Riverwest Pottery Works, 6103 W. Mequon Rd., Thiensville 53092, $20,000, Bank One;
Sentra Protective Systems, 3055 N. Brookfield Rd., Brookfield 53045, $50,000, St. Francis Bank;
Therm Tech of Waukesha, 301 Travis Ln., Waukesha 53189, $150,000, Waukesha State Bank;
Traditions Coffee House, 141 Front St., Beaver Dam 53916, $12,000, M& Bank South Central;
Watertown Collision Center, 409 Clyman St., Watertown 53094, $163,000, First Bank of Oconomowoc;
West Bend Lakes Golf Club, 1241 Hwy. 33, West Bend 53095, $607,000, Wisconsin Business Development Finance Corp.;
Wisconsin Truck Equipment, W4484 Potter Rd., Elkhorn 53121, $82,000, Amcore Bank, Clinton;
Wisconsin Petroleum, 540 E. Burnett St., Beaver Dam 53916, $598,000, State Bank of St. Cloud;
Wise Photography, 788 Bragg St., Fond du Lac 54935, $127,500, Bank One;
Woodcraft, 1725 S. 108th St., West Allis 53214, $300,000, AT&T Small Business Lending Corp.;
Yelle, 115 Lincoln Ave., Sheboygan 53081, $70,400, Bank One.
Minority loan
Patterson Training and Consulting, Inc. (PTC), Milwaukee, has received an $83,000 loan from the state’s Minority Business Development Fund for an expansion project.
The project is expected to create 33 jobs over the next three years, and leverage $277,000 in additional investment.
PTC’s clients have indicated a need for information technology and technical skill development. The company will use the loan to help finance the necessary equipment to open and operate a New Horizons Learning Center franchise in Kenosha County or Racine County. New Horizons Worldwide, Inc., the franchiser, is the largest computer training company in the world.
Training grant
Walenta Grinding, Inc., of Brookfield has received an $18,272 Customized Labor Training grant from the state.
The company operates a high-quality grinding service for original equipment manufacturers and subcontractors which produce parts for OEMs.
Walenta Grinding has recently purchased CNC and centerless grinding equipment. The new equipment provides the company with an opportunity to win additional market share.
It will use its grant money to train 10 current and three new employees on the equipment.
The training project will leverage $18,272 in private funds.

WMEP bridges productivity gap for small manufacturers
SBT Associate Editor
Before he heard about a program that helps businesses improve their manufacturing operations, Richard Pettibone says the lead time at Drewco Corp. in Franksville used to be three to four weeks.
Through a business associate, he heard about the Wisconsin Manufacturing Extension Partnership (WMEP), which provides small manufacturers with a low-cost assessment of their operations.
After Drewco received guidance in how to set up cell manufacturing, the maker of special holding fixtures for machine tools has seen its lead times reduced to one week.
“Before, all of our manufacturing areas were separated from one another,” says Pettibone, the president and owner of the 28-employee firm. “All we did was rearrange the machines. Because the machines are so close together now, communication has improved. So if there’s a problem, they can correct it immediately. The results have been very, very good.”
Aside from the manufacturing improvements, WMEP advisers helped Pettibone establish a five-year business plan, with the goal of doubling business over that time period. The plan takes into account everything Drewco will need – from equipment, to floor space to managers and computers.
“Now we have a plan, and some sequence of events that have to happen to make this business grow,” Pettibone says.
As crucial as smaller manufacturers are to the economy, the productivity gap between large and small firms is growing. According to a National Research Council report, many small firms are operating far below their potential, despite using modern manufacturing equipment, methodologies and management practices. Limited resources, lack of in-house expertise and lack of access to the newest technologies are some of the significant barriers faced by smaller manufacturers.
WMEP aims to bridge the productivity gap by working directly with manufacturers to provide expertise and services tailored to their most critical needs, which range from process improvements and worker training, to business practices and applying information technology. Solutions are offered through a combination of direct assistance from WMEP staff and assistance from outside consultants, many of them from technical colleges.
WMEP has its own field staff, and is supplemented by the resources of area technical colleges, says Mike Klonsinski, executive director of the private, not-for-profit organization which started in Wisconsin in 1995, and is part of a national network of manufacturing assessment centers linked to the National Institute of Standards and Technology.
“We come to small companies with small-company expertise, but with the larger knowledge of what they need to compete,” says Gina Catalano, regional manager for WMEP in southeastern Wisconsin. “Because we do this a lot, we can marshal resources faster than a company can do it themselves.”
Based on their findings, WMEP advisers offer follow-up advice and on-site assistance. The typical engagement period for a manufacturer with WMEP is six to nine months, although it can be longer, Catalano says. It’s not unusual for WMEP to start working on a project with a company and then find that additional projects crop up.
That was the case with Milwaukee Precision Corp., a manufacturer of precision machined parts and measuring instruments. The company’s challenge was to eradicate the Year 2000 problem from all of its systems by April of this year. WMEP assisted in the selection of a Y2K software system. The process also led to re-evaluating numerous other operations within the company, including replacement of long-outdated program language.
WMEP helped Milwaukee Precision Corp. form a cross-functional team to evaluate its operating methods and helped the company make changes to incorporate along with its software. Beyond the Y2K problem alone, WMEP’s helped Milwaukee Precision revise its goals to improve operations companywide, Catalano says.
“These are people who have been in manufacturing for a long time, and who have a wealth of experience,” adds Drewco’s Pettibone.
Of the eight full-time WMEP field agents in southeastern Wisconsin, each one has no less than 25 years experience in his field, Catalano says. The agents have backgrounds in engineering, manufacturing management, labor-management relations and finance.
Jordan Controls on Milwaukee’s northwest side has always been interested in process improvements. But the manufacturer of electric actuators met with mixed success in those efforts, says president Bob Seidell. (Electric actuators take a signal and tell a valve on a boiler to close, for example).
Enter WMEP, which assisted Jordan Controls in determining the most critical areas that required improvement. At the outset, WMEP brought in a team of five people who went around the company and interviewed employees. That was followed by an assessment, which recommended the formation of cross-functional teams to determine and solve the problems.
The company was then assigned a facilitator from MATC, who conducted a series of offsite meetings with the company’s entire management team and supervisors.
Jordan Controls used the prioritization techniques suggested by WMEP in order to break down the problem areas. That involved forming seven process improvement teams.
The areas that were addressed included improving internal training, scheduling and delivery, improving sales order entry, setup reduction in the machine shop, making the transition to cellular manufacturing, and mapping the information flow of an order all the way to shipment in order to reduce lead times.
While it’s still a little early to see results, Seidell says the product scheduling team that ordered a new front-end order system has realized instantaneous results, as on-time deliveries have improved.
“The soft benefits are that it certainly helped us analyze, distill and focus on the most important areas for process improvements,” Seidell says. “They taught us a methodology of how to form our own cross-functional improvement teams. The model that WMEP taught us is one we will probably use forever.”
While WMEP has been involved with Jordan Controls for well over a year, consultants are always available. According to Seidell, the $3,000 cost for WMEP’s involvement was “astonishingly low.”
“In fact, it was so low, we thought it couldn’t be any good at that price,” he shrugs.
Evidence suggests that the manufacturing extension partnership is a bargain. A report by the Center for Economic Studies at the Bureau of Census showed that 1,559 firms which used the MEP service realized an growth of anywhere from $9,017 to $2,334 per employee. That compares to an average growth rate of $508 in added value per employee for non-MEP client firms. Using the most conservative estimates, total impact on the economy from 1,559 firms in two states over a five-year period resulted in additional economic output of $1.268 billion, the study said.
“One client who came to us by word-of-mouth told us we’re like a best-kept secret, that we need to start advertising our services,” Catalano says.
To request the help of WMEP, call the WMEP regional office at (414) 906-9637.

Some firms still hesitate, but electronic commerce is the future of business
Electronic commerce is more than just ordering a book through amazon.com. “To me, electronic commerce is the automation of the buying and selling process through the Internet,” says Rick Saindon of Greenbrier & Russel, Inc., an information technology consulting firm.
As more businesses engage in electronic commerce, or e-commerce for short, others who will want to do business with those firms are also getting into the act.
“We’ve found in a number of cases, we start talking about the consumer to business (e-commerce), and they say, ‘Wait a minute. We have distributors, we have resellers, wholesalers,'” Saindon says. “And they get a little nervous when we begin to offer products directly from the manufacturer to the end-customers through them.”
In effect, many manufacturers are reluctant to cut off their wholesalers and distributors, key components of their sales force.
Reasons for hesitancy
Saindon listed several additional reasons why companies have hesitated to begin using e-commerce.
Formative years. Saindon readily admits that some of the companies that were pioneers of e-commerce as little as two years ago may have gotten burned by the high cost and relatively cumbersome operating platforms used. Few canned solutions were available, so most companies were forced to develop their own e-commerce systems. Because each system was highly proprietary, the individuals that developed them could command higher salaries elsewhere for having developed the system, leaving the original companies without skilled individuals to maintain their systems.
Not ready for mission critical. Issues such as reliability, availability and security had to be addressed before companies became confident that the system would work.
Evolution. Earlier proprietary e-commerce platforms were so complicated the cost of evolving the application to reflect changes in the business were not only very costly, but time consuming, Saindon says.
Support costs. If the company is selling to global markets, the site should be maintained 24 hours a day, seven days a week by professional technicians. “However, businesses that just sell in the United States can say, ‘We’re going to guarantee our e-commerce site is up from 6 a.m. to 8 p.m.,’ so that reduces some of that support burden,” Marc Blazich, Milwaukee branch manager for Greenbrier & Russel, says.
Internet connection costs. Saindon estimates that an e-commerce site going full tilt would need wider bandwidth, costing a business between $2,000-$2,700 per month.
The wrong people are making the decisions. “The people who are interested aren’t the managers of Information Services or Technology Group, it’s the CEOs and the (big picture) people,” Blazich says. “They’re the people that are more concerned about what their competitors are doing, more than the head of IT.”
“To the guy in IT,” Saindon adds, “it’s a whole new technology and another project and more burden and more support.”
Y2K. Companies are racing to get their systems Year 2000 compliant, which leaves little time to invest in the technology required for a good e-commerce site. But Saindon thinks that companies should position themselves with e-commerce technology as a cheap insurance policy against the potentially crippling effects of the Year 2000 bug. “In other words,” Saindon says, “the traditional business-to-business interfaces may break down in which case this new mechanism could be sitting on the shelf waiting for establishing a quick link where those traditional, existing links have broken (down).”
Reasons to jump in
Of course, there are reasons why companies are eager to try e-commerce as well.
Target marketing and advertising. The site can change its look depending on who is accessing it (through log-on information). If distributor A buys 10 items consistently, the site can display those items up front, versus distributor B who purchases items on a more random basis and may need a browsing feature on his Web site view. That also enables the business to target its advertising efforts depending on who is accessing the site.
Beating your competition to the Web. As time goes on, more and more companies will sense their competition moving to the Web, forcing them to set up a site as well.
Streamlining the business and customer service. “They (customers) want to be empowered,” Saindon says. “They want the opportunity to take control of the situation themselves. They don’t want to wait in a queue, waiting for the next available representative to talk to. They can go out and find it (information) when they want it.” It also reduces overhead costs in providing customer service because less staff is needed due to the self-service element of e-commerce.
Managing growth and reducing overhead. “As you grow a company traditionally, you don’t want linear growth in the overhead mechanisms that it takes to support that growth,” Saindon says. “You want non-linear so you can grow the company with something less in terms of the overhead costs. Electronic commerce is a way to apply technology as a way to do that.”
Reducing operational costs with fewer steps. Saindon uses Microsoft’s MS Market, an e-commerce procurement tool, as an example of the cost-savings of e-commerce. The industry standard for processing purchase orders (POs) is $104 per PO. The cost for processing POs with MS Market is $5 per PO. After Microsoft implemented MS Market, it re-allocated 27 people from its procurement department to other areas within the company. Microsoft processes 291,000 transactions per year, for a net savings of $28,809,000 using MS Market. “And they’re running this whole thing on one server and one sequel server,” Saindon says. “So it’s not a huge platform to handle this volume of transactions, but they’re saving a ton of money.”
Increased revenues. Electronic commerce reaches out to the global market and is available 24 hours a day, seven days a week.
Trickle down mandates from large customers. Companies like General Motors or Sam’s Club require vendors to use e-commerce.
Built-in controls. E-commerce sites can be customized down to the individuals ordering from them. So if individual A is only authorized to buy $1,000 at a time or buy certain items, that’s all the site will allow him to do.
At minimum, a company needs a couple of PCs, an Internet connection and about $4,200 for Microsoft’s Site Server, Commerce Edition 3.0. It would also need Windows NT and some other basic operating software to get up and running. (Other programs available require more hardware and are more expensive according to Saindon and Blazich.)
For companies that are still hesitant in investing in an e-commerce experiment, there are hosting services available where companies can “test drive” an e-commerce site for as little as $500 a month. An Internet connection is the only thing required of the company testing the service.
Saindon recommends the Microsoft product for several reasons including cost, ease of use, support software companies and the Microsoft’s track record in developing new technologies. “I’m banking on (Bill) Gates because over time he’s proved again and again that he has the staying power and the resources – whether or not he’s the best product doesn’t matter to me – he has the vision and the ability to win the game,” Saindon says. “I’m going to ride him as far as he’ll take me.”

New corps guiding Waukesha into new millennium
A lifelong Waukesha resident. A La Crosse native and a Milwaukee native. A transplanted Californian.
They’re the new kids on the block, relatively speaking, in Waukesha government: the mayor, the superintendent of schools, the executive director of the Chamber of Commerce and the chief of police, respectively – and they’ve got big plans for the city.
But more than that, these new heads of their various departments within the city of Waukesha are working together to realize their goals for the city, which center around community-building and cultivating a sense of city pride.
Although Mayor Carol Lombardi took office just this past April, she’s been involved in some aspect of Waukesha government since 1954, when as a senior in high school at what was then Waukesha High School, she took a job as a secretary for then-Mayor C.C. Smith. Her post-high school hope was to become an elementary school teacher, but instead she stayed on as the mayor’s secretary for six years. Later on, she was able to get into the education field by working first as a reading aide at Whittier School and then as a counselor aide at Waukesha South High School. Lombardi held additional employment within the Waukesha School District as an administrative secretary to the superintendent of schools.
Five years ago, after retiring from the school system, Lombardi returned to City Hall, this time a member of the Waukesha Common Council. Today, she is Waukesha’s mayor.
“I love this city and I love the people who live here,” Lombardi says. “I want to be as involved as I can in making this city as great as it can be.”
Having lived her whole life in Waukesha, Lombardi knows quite well the history of Waukesha, going all the way back to the city’s founding in 1896, through the time when Waukesha was known as “Cow County, USA,” because its farms raised some of the world’s most prized cows, up to present times. She wants other Waukesha residents to be well-versed in the city’s history, too, and City Hall is the best place, in Lombardi’s opinion, to teach that history. She’s started a City Hall beautification project through which she hopes to turn Waukesha City Hall into a public museum of sorts – a welcoming place through which visitors can walk, taking in bits and pieces of Waukesha history, as well as the works of local artists and students.
In addition to the City Hall project, Lombardi and the Waukesha Common Council have created a city administrator position, with the goal of improving efficiency within the city government, Lombardi says. A city the size of Waukesha – 62,800 souls and growing – cannot be without a city administrator, Lombardi believes.
For Lombardi, team work is the only way she sees her goals being attained, and the most successful team, she says, is the one which operates according to a philosophy of mutual respect.
“We can do a lot in this city, but we have to do it as a team,” Lombardi says. “There’s a real sense of respect among the leaders in this city. I feel a very positive vibe here.”
Dave Schmidt understands the value of involving the community, parents and business in the education of a city’s children. Having spent nine years as the assistant superintendent of the Appleton school district, a district known for its decentralized structure and its commitment to the “Village Partnership” – a program in which schools connect with businesses and parents – Schmidt, a La Crosse native, came to Waukesha in July to begin his duties as the new superintendent of the Waukesha school system, with a plan that can be summarized in two words – decentralization and collaboration.
Schmidt and the school board are in the process of writing the parameters by which next year’s budget will be decentralized for participating schools. In Schmidt’s philosophy, individual schools can best educate their students if given more control to deal with the issues faced by that particular school.
From the collaboration end, in February the Waukesha Area Chamber of Commerce will facilitate tours and dialogue between Waukesha teachers and business people, and Schmidt says plans for mentoring and job shadowing programs are in the works. Additionally, Schmidt is working with the Waukesha Police Department to start a police-school liaison program.
“Public education and business need to learn more about each other,” says Schmidt. “The students are future employees for these businesses, and the businesses have the jobs that the students will need. Business people here are very open to working with the schools because they know that what and how the students learn will affect them.”
The community involvement ethics carries over to the Waukesha Police Department, where Chief Leslie Sharrock, the oldest of the new kids in terms of time in office – he’s been Waukesha’s police chief since March of 1997 – is working to install in Waukesha what he terms the “community policing concept.” It’s an idea Sharrock brings from Moorhead, Minn., where he was police chief before coming to Waukesha, and the basic premise centers around the idea that police must partner with the community in order to address issues and solve problems effectively.
To that end, in the summer of 1997 a police substation was opened in downtown Waukesha and a bike patrol was implemented to have police more visible and accessible in the downtown area and throughout the community, Sharrock says. In February of 1998, Waukesha received a $450,000 federal Community Policing Grant to be used over a three-year period. Starting in January, Sharrock will visit all the neighborhood block clubs in an attempt to raise their level of involvement in community policing.
“I surveyed our department and the community, and one of the main things I found was that both the police and the residents wanted more interaction between the community and police,” says Sharrock, whose career in law enforcement began 33 years ago in the San Francisco Bay area, where Sharrock was a police officer.
In March of 1998, the Waukesha Police Department started a 10-week Citizen Police Academy program, in which citizens come to the police department one night a week for three hours to learn about what police do.
“It’s good for people to get a realistic view of what police work involves,” says Sharrock. “It’s not like ‘NYPD Blue’ and we don’t solve homicides in 30 minutes.”
Like Schmidt and Lombardi, Sharrock believes in the need to collaborate with city leader in order to achieve his goals. He mentions the development of a police-school liaison program as one of his main goals for 1999, and Lombardi spent a day with Waukesha police officers learning what a day in their lives is like.
Ann Nischke has been active in the Waukesha Area Chamber of Commerce since 1990, when she came to Waukesha to be the CEO of the Waukesha YMCA. In 1994 she was elected president of the Chamber, and today she is the Chamber’s executive director.
“I’ve always known how dynamic this organization is,” says Nischke, who worked for 15 years with the Milwaukee and Waukesha YMCAs before becoming CEO of the Waukesha branch. “The genius is in the many councils and committees it has. It serves the smallest businesses up to large corporations such as G.E.”
Strategic planning focus groups have come together at the Chamber to determine what is needed in Waukesha to help businesses, says Nischke, and workforce development and employee retention are two issues she’s found to be very important to the community. As part of a plan to address these issues, Nischke is working with Waukesha’s Workforce Development Center and the Waukesha school board.
“Many other leaders in this city are very progressive and want to see change happen,” Nischke says. “They understand that good change will only happen by working together.”