Sterns see mission in filling vacant urban properties
When Sam and Nathan Stern look out over their third-floor office in Milwaukee’s Riverwest neighborhood, two things stand out in the panorama.
One is the distant view of downtown – an area infused with millions of dollars of redevelopment money over the last decade and an area with a seemingly very bright future.
The other scene is of Humboldt Yards across the street, arguably a blighted area where railroad engines and cars of the Milwaukee Road once gathered, and where neighbors once bought gravel and sandbox sand from a corner-lot business operated by Norman Pipkorn. The vacant site is now the center of controversy over the potential establishment of a Jewel/Osco retail operation there, alongside residential development.
But behind those scenes of downtown redevelopment and the highly publicized Humboldt Yards prospects lie scores of properties awaiting attention. The Sterns have made it their mission to bring attention to those sites, to be catalysts in redeveloping what some would say are the less-attractive parts of the community.
The critical difference is, the Sterns don’t see those areas as unattractive. On the contrary, they see the central city as laden with amenities for businesses. And they believe it’s incumbent for business to support the central city.
“We believe it is important that, if the suburbs are going to be strong, the center of the community has to be, too,” says Sam Stern, Nathan’s father and the originator of the duo’s business, Stern and Associates. “You can’t have a strong suburban economy if the head is weak. All the limbs of the body have to be strong.”
But how do you make the head strong? The Sterns believe the ingredients are in place for that to happen. And they don’t see the “head” as being totally down and out.
“Milwaukee has done a great job of holding itself together, “Nathan says. “But where is it going from here?”
Sam adds, “The suburbs have grown at the expense of the head, and it’s time that the head compete.”
The right marketing in commercial real estate dealings can makes things happen, the Sterns say.
“It takes more than putting up a sign on a property; you have to be willing to market your offerings as would any new industrial park in the suburbs, and maybe more so,” Sam says, lauding efforts of the city to do just that in some parts of town, such as the 30th Street Industrial Corridor.
The perceptions of crime, which they’ve noted are misperceptions, have to be dealt with head-on, they say.
“The reality is much better than the perception, in a business sense,” Sam says. Those misperceptions, he says, foster economic depression in central city areas and impose unnecessary costs on businesses. “They’ve allowed their fears to cost them money.”
What business owners will find in city commercial buildings, the two say, are favorable cost-per-square-foot terms, in-place infrastructure, and a nearby labor pool which doesn’t require extraordinary transportation to a plant.
The Sterns don’t say that a city location is the right move for every business.
“While I have lived in the suburbs and while there can be good reasons for a business to be in the suburbs, there are businesses that should be in the city and which would benefit from being in the city,” Sam says.
The Sterns last year – their first year of business – handled close to $2 million in transactions, and they have a number of properties in Milwaukee County which they’re now marketing, including the old Geiser Potato Chip plant at 30th and Burleigh in Milwaukee – a 142,000-square-foot, food-grade facility that now lies vacant after a trucking/warehousing firm declined to renew its lease for the space. They’ve been in talks with prospective tenants about the space.
They’re also marketing space in the building they operate from at the southwest corner of Humboldt and North avenues, a building owned by Damian Zak that was originally built in the 1800s as a Jos. Schlitz Brewing Co. tavern.
Interest in city properties has picked up, they say.
“In the last six months we’ve had inquiries from people who need crane buildings, and who need to save on fixed costs, and who need workers,” Sam says. “And they’re considering leaving the suburbs because the square-foot rate of being west of the beltway is a lot of money in comparison to what it is in the city.”
Marketing properties in older areas of the city can be challenging.
High on the list of those challenges are regulations related to polluted lands -regulations that must be changed if America’s cities are to survive, say Sam and Nathan Stern of Stern & Associates in Milwaukee.
“No one wants to drink polluted water, or to have their children or themselves exposed to contaminants,” Sam observes. “But there are situations where pollution causes no harm.”
In those cases, the two say, redevelopment must be made easier.
It can be made easier by indemnifying property owners from liabilities for past polluting practices, they add.
“The present laws which will not indemnify against future liability make it impossible to transfer title, so lenders won’t touch such deals,” Sam notes.
But the second issue, he adds, is that there are properties that might be polluted but which pose no health threat. The question then becomes, what’s the real cost – to a community’s economic vitality – of not developing those sites?
“Those sites become unbuyable for people who could use them,” Nathan says. Unused, he says, the sites only foster further economic degradation, a point community leaders throughout the nation realize. “City governments realize that, without indemnification, major portions of cities will never have a use.”
May 1998 Small Business Times, Milwaukee

Joppe Logistics, LLC, a new distribution company, has leased 137,500 square feet of the former Briggs & Stratton facility at 12000 W. Burleigh St. in Wauwatosa, according to Mooney LeSage & Associates which handled the transaction.
The company commenced business in February, according to owner James Joppe Jr.
In addition to serving Briggs & Stratton, the company offers distribution, logistics and warehousing.
The company has signed a long-term lease.
Other leases announced by Mooney LeSage include:
– 42,000 square feet of space at 960 E. Milwaukee St. in Whitewater for Eco-Tech;
– 32,300 square feet of space at S66W14328 Janesville Rd. in Muskego for Meurer Bakeries of Milwaukee;
– 30,000 square feet of space at 1171 Universal Blvd. in Whitewater for Trek Bicycle Corp.
The Polacheck Co. of Milwaukee has announced the following leases:
– 1,847 square feet of retail space in the Riverview Centre at 827 S. Rochester Rd. in Mukwonago for Einar C. Svang III, DDS;
– 2,820 square feet of office space at 8350 N. Stevens Rd. in Milwaukee for Barrientos Architects;
– 1,150 square feet of retail space at 1677 N. Farwell Ave. in Milwaukee for Starbucks Corp.;
– 11,241 square feet of office space at 4915 S. Howell Ave. in Milwaukee for Sky Alland Marketing;
– 2,681 square feet of office space in the Riverfront Plaza at 1110 N. Old World Third St. in Milwaukee for CBS Cable; CBS Corp.;
– 1,780 square feet of office space at 5485 S. Westridge Dr. in New Berlin for Aid Association for Lutherans;
– 2,289 square feet of retail space at The Pavilion in Mequon for Scando Enterprises, d/b/a The Tinder Box;
– 6,400 square feet of industrial space at 11711 River Ln. in Germantown for Mero Structures, Inc.
– 2,738 square feet of office space at 250 N. Sunnyslope Rd. in Brookfield for Banc One Financial;
– 23,500 square feet of retail space at Rivercrest Drive and Appleton Avenue in Menomonee Falls for Office Max, Inc.;
– 2,000 square feet of retail space at Timmerman Plaza at 10442 W. Silver Spring Dr. in Milwaukee for Advance America, Cash Advance;
– 10,400 square feet of space at 1000 N. Water St. in Milwaukee for New Resources Corp.;
– 4,800 square feet of retail space at 6800 Washington Ave. in the Racine County Town of Mount Pleasant for Aurora Health Care, Inc.
Building Projects
Golden Leaves, LLC, is constructing a 15,000-square-foot retail and professional office building in downtown Hartland. The property, at 350 Cottonwood Ave., will be the home of Benning’s Books, adjoined by Heidi’s Café and Gourmet Coffee, Inc. The project also includes interconnected professional office suites and a luxury second-level apartment.
Ludwig Ridder Design, an architectural firm, will occupy one of the suites.
The development is a venture of Dianne Benning, who started Benning’s Books five years ago, and partner Karen Zernan. Golden Leaves will also manage the building.
Beyer Construction of New Berlin is handling interior office construction for the Helen Bader Foundation at the century-old Saddlery Building at 233 N. Water St. in Milwaukee. The foundation is locating from the Firstar Center. Architectural work is by Kahler Slater Architects of Milwaukee.
– Beyer is nearing completion of a project at Eaton Corp./Cutler Hammer Products, 4201 N. 27th St., Milwaukee. The project, which began in December, involves renovation of the second floor elevator lobby and complete reconstruction of the cafeteria and servery areas. Work includes installation of new servery fixtures and food service equipment, and new lighting and furniture. Quorum Architects of Milwaukee handled design.
Selzer-Ornst Co. of Wauwatosa is completing the renovation for Interim Health Care in Wauwatosa.
KCM, Inc., of West Bend has completed the design and has been awarded the contract for a 10,000-square-foot professional office and retail mall to be located in Jackson. B.E.K. & Associates, owners, are in the process of leasing the space.
– KCM has also been awarded a contract for a 13,000-square-foot industrial building in Jackson. The owner, Sierra Grinding, manufactures grinding wheels.
Z-Teca Fresh Mexican Grill Restaurant of Milwaukee chose MSI General Corp. of Oconomowoc to complete the tenant build-out for a Mexican restaurant at 3101 N. Oakland Ave. in Milwaukee. An April opening was scheduled. The restaurant will be operated by Roaring Fork, LLC, which is owned by Mike Pranke and Eric Wagner and which holds the exclusive Wisconsin franchise for Z-Teca. The restaurant firm is based in Denver. Founded in 1995, it plans to have about 300 locations in the US by the year 2000. It features made-to-order entrees.
– MSI General has also been selected by Custom Products Corp. of Menomonee Falls for the design and construction of a 33,502-square-foot addition to its manufacturing facility at the corner of Lilly Road and Silver Spring Drive. The expansion is Phase I of a program to provide additional manufacturing space. New orders from Cummins Engine and others were the catalyst for the project.
When John Iverson purchased the company in 1972, it had three employees and 8,000 square feet of space. It now occupies more than 300,000 square feet and employs more than 650 people. With expected growth, the company is planning a Phase II addition, as well.
Venture Development of Waukesha has completed the new office space for Relations Systems in Brookfield.
– Venture Development has also completed an interior remodeling project for Burton & Mayer, Inc., in Brookfield.
ASI General, Inc., of Waukesha has completed a new office building for Wisconsin Retail Lumber Association at W175 N11086 Stonewood Dr. in Germantown. The building includes 6,000 square feet of offices for the association and 4,000 square feet for tenant space.
The Lang Group of Lake Mills has been selected by the Sheboygan Redevelopment Authority to develop 14 condominiums with individual entrances on the Sheboygan River in the downtown area. The project will be known as River’s Edge. Each home will have a boat pier in the backyard with access to Lake Michigan.
Moves
George Webb Restaurants has moved to a new corporate office and commissary in the Bluemound East Industrial Park, south of I-94 in Pewaukee. The 16,350-square-foot building features expanded warehouse space plus rooms for training, conferencing and a full test kitchen. The chain now has 45 restaurants in Wisconsin.
Image Makers Advertising has moved from its Elm Grove location to its own renovated building at 139 E. North St. in Waukesha. The historic building was constructed in the 1880s as an out-building for a woolen mill.
Maglio & Co., a full-service wholesaler and distributor of produce, has relocated its offices and warehouse to 4287 N. Port Washington Rd. in Glendale.
The company had operated for 50 years on Commission Row in Milwaukee’s Third Ward. A second location was added in 1985 in the Walker’s Point neighborhood. Both those locations were vacated.
By the end of the year, the company expects to add 15 people to its current staff of 52.
The Glendale site was purchased from Johnson Controls last May. A 21,000-square-foot addition was constructed, adding 10 truck doors. The completed facility has 80,000 square feet of operating space with more than 30,0000 square feet dedicated to refrigerated storage.
With the added capacity, the company plans to expand its service territory and product lineup.
May 1998 Small Business Times, Milwaukee

At Jorgensen Conveyors in Mequon, business is booming. The firm, which makes custom-designed conveyor equipment used in the metal-working industry, employs about 120 individuals. It moved from Milwaukee to Mequon in 1985.
“Getting qualified employees is a challenge,” said Marc Jorgensen, president of Jorgensen Conveyors. “It is one of our main issues, especially as a constraint to growth. We are in an environment here where you have to be as creative as possible in finding new workers.
You can’t just sit back and rely on traditional methods.” To build his workforce, Jorgensen got involved with the Ozaukee County Transportation Management Association.
“It has really helped us,” Jorgensen said. “We’ve got about four people each day riding the system. I know it’s helped other businesses even more than us.” The other path Jorgensen took to increase his labor pool was through the Workforce 2010 program, which allows high school students to get apprenticeships at local businesses. A consortium of businesses along with the local high schools developed curricula in the schools and at various worksites to teach students basic skills they need to succeed in the workplace.
In addition, Jorgensen is working with the Milwaukee Area Technical College and the Wisconsin Regional Training Partnership to recruit under-employed and unemployed workers, as well as those involved with the Wisconsin Works (W-2) program. In late March, a welder from Jorgensen spoke to a group of about 50 prospective employees about working at Jorgensen.
“We hope to hire about 10 to 12 people as welders through this program,” Jorgensen said.
“It is a nice opportunity for us and them.”
May 1998 Small Business Times, Milwaukee

Does yours provide all the benefits it could?
Recruiting is arguably the most basic HR function. And the employment application form is certainly the most basic recruiting tool. Therefore, it seems logical to make sure your application form enhances the hiring process.
However, if you’re like many business owners (or HR people) with “to-do” lists that are already too long, it’s been quite awhile since you revised or even reviewed your company’s application form.
As with many employment-related matters, there are two aspects to consider – legal compliance, and potential benefits that enhance HR effectiveness and therefore organizational success.
Legal compliance
No law dictates what an employment application form must look like. But numerous laws make it illegal to use the answers to any potentially discriminatory questions.
It’s therefore risky to include such questions on an application form, since courts and administrative agencies are likely to presumé that you’ll use all the information solicited.
If discriminatory hiring activity is alleged, the burden is overwhelmingly on the employer (and it’s very difficult) to prove that non-job-related questions on an application form were truly not used to discriminate.
The best rule to follow is to include only questions that will provide job-related information.
Enhancing the effectiveness
of the hiring process
It’s a good practice to require all applicants to complete an application, even if they’ve submitted a resumé. Remember, a resumé is written to present an individual in the best possible light. A well-designed application form provides valuable information that is rarely included on a resumé:

Emotions are often basis of purchase decisions
Ask a car dealer, and many will tell you that their customers buy the looks, the color, the style of a car first, then support their decision with logic, like gasoline mileage, warranty and affordable payment plans.
Dale Carnegie said, “When dealing with people, remember you are not dealing with creatures of logic, but with creatures of emotion.”
Whether we’re buying a car, a house, a bulldozer or breadsticks, our buying decisions are driven by emotional factors, then backed up with facts. The salesperson who recognizes this will close more sales and forge stronger customer relationships.
This is yet another reason why the questions you ask up front are so critical.
Too often we make a few, quick queries about current usage and needs, then launch into a lengthy lecture on why ours is faster, cheaper and better.
You can’t blame the prospect who then says “I’ll let you know,” and stops returning your voicemail messages.
Emotional reasons for buying are as individual as your customers. While price is always mentioned as a buying requirement, we all know that the lowest price doesn’t always win.
In fact, most buying decisions are made on other criteria. Will your product or service require special training for an already over-worked office staff? Will buying from you require the prospect’s accounting department to make changes, all for the sake of a few cents per item?
Are relationships already formed with competitors? Most important, does doing business with you help to fulfill the job satisfaction needs of your customer? These are far more likely reasons than price, and every one of them can be overcome – if you uncover them.
Even buyers who appear to focus only on the logic of the sale do so because they take pride in making a wise decision which, in itself, is the emotion factor.
Understanding the buyer and that person’s business will help you to help the client. With so much information available at our fingertips, nobody
… buying decisions are driven by emotional factors …
should make a sales call without knowing something about that industry, current trends, or even the company itself. When meeting face-to-face, find the prospect’s personal buying triggers.
Ask what he or she likes best and least about current vendors. Ask who in the company would actually use the product or service you’re selling, and how your company can be of assistance.
Is that price-only buyer you’re working with more interested in protecting a budget, or demonstrating accountability to superiors? In either case, once you find out, you can help.
Ask more questions, uncover more wants and needs, and sell benefits, not just facts. You’ll end up selling more. Lots more.
Joe Guertin is president of Joseph Guertin & Associates, an Oak Creek-based speaking, training and coaching firm. Your comments are invited at 762-2450, or jguertin@tcccom.net
May 1998 Small Business Times, Milwaukee

Anticipate problems when switching computers
When I was a kid, my dad purchased a new car every two years, always an Oldsmobile and always the auto that our family doctor was trading in on a new model.
I was reminded of that the other day when I got my new laptop. As a pseudo techno-geek, I have the enviable position of working for an early-adapter super techno-geek. That not only allows me to see and play with the latest and greatest technology, it also means that I get the chance to purchase the hand-me-downs.
The hand-me-down that was the latest object of my desire is a 150mhz MMX, 32mb, active screen, 10 spin CD-ROM, laptop.
I was somewhat comforted in taking on this used machine knowing that buying used enabled me to obtain more horsepower and a much nicer interior than I would have been able to afford if I had purchased new.
Like any recently purchased used auto, or computer, there were a few minor maintenance issues to be resolved before I could go zooming down the information highway. In my case, it was a Lithium Ion battery that brought me to my knees and made me realize how much of my life is now contained on a computer hard drive.
The machine worked fine as a computer, but as a laptop it was worthless. My battery would not take a charge.
Prior to purchasing my first laptop I was a hardcore desktop user. I believed that the screen real estate that one had to sacrifice in order to be mobile was not worth the convenience. Also, at the time laptops were not as powerful as the current state of the art.
The greatest challenge I had with this belief was that as I like to work at home as well as the office, the desktop solution was less than efficient. While I could copy documents onto a floppy or some other removable media to stay mobile I still always seemed to have left the document I most needed on the machine in the location other than the one where I had to do the computing.
A power-user friend of mine convinced me that switching to a laptop would solve my problems. He also said that once I switched to a laptop I would never want to go back to a desktop. I have found that to be true, as I cannot think of a reason why I would ever want to once again own a desktop computer. Except maybe that my aforementioned battery was not charging, thank goodness I had planned my move in advance.
If you have not changed computers for a while, let me tell you that it takes some careful planning before upgrading. If you have any meaningful interaction with a CPU – in other words, if you are doing any more than the most basic data entry – you have to think carefully about what you are about before your impending move.
Document management pays great dividends in these situations. I keep all my documents in the Windows 95 folder called “My Documents.” I never save a document to the root of “C.” This greatly narrows down my searches for mistitled docs as I at least know they are in the “my document” folder on one of the sub folders I have created in My Documents.
When I was preparing my move to the new machine I all I had to do was copy the “My Documents” folder onto Zip disks and transfer them onto my new machine.
It is the small utilities and helper applications that can be the wild card. For example, I have quite an extensive collection of well organized URL bookmarks inside my browser which I needed to move as well as a couple of older shareware applications which I would be lost without.
Don’t forget to search around the data files for your scheduling and e-mail applications. Most current applications will not allow you to simply transfer the application from one system to another, you must use the installation program to properly set up the application.
If you have used the application for some time, there may be some historical or back-up data files which you may need in the future, so think carefully about all the applications you most frequently use.
I tend to customize the menus in the office applications I use most frequently. It is amazing how accustomed one becomes in the appearance of one’s screen and how difficult is to recall were one went to perform the original customization.
Those are the most basic planning procedures one must go through when contemplating a move to a new system. The Nick Card rule of thumb states that when migrating to a new computer, expect a 30-day lag in optimum operator performance while the user tweaks the applications.
I was without my primary machine for about a week. Being homeless in cyberspace is not fun. I practically live in e-mail and my electronic calendar is my guidepost. I had to plan my day around using “vacant” PCs while their primary users were out of the office.
Luckily, being a techno-geek helped as I keep my contacts and calendar on a Pilot. I had the contacts I needed. The biggest challenge turned out to be making sure my Palmtop and my desktop schedules stayed in sync as I could not use the auto sync function with out my laptop.
So the moral of the story is three-fold: First, before migrating to a new machine plan carefully to make sure you get all the documents and data files you need to get your job done. Second, make sure that even if you are not contemplating a move that you back up your data files, you never know. And third, try to work for a techno-geek, like Paul Simon said “One man’s ceiling is another man’s floor.”
Nick Card is a pseudonym for an employee of Allied Computer Group in Milwaukee. Nick can be contacted via e-mail at nick@alliedcg.com.
May 1998 Small Business Times, Milwaukee

Communication helps balance employee’s and company’s needs
It was noon on a work day when my 12-year-old son’s doctor referred him to the cancer clinic at Children’s Hospital for testing.
Of course, I left the office immediately. It was the first of many times I was absent from work – physically and mentally – during Todd’s diagnosis and the ensuing nine months of chemotherapy.
No parent can imagine the turmoil that comes when a child falls seriously ill. In the same vein, no policy manual can account for the disruption in the workplace when an employee must attend to a sick child. Absences are not just frequent but unpredictable in timing and duration. Schedules have to be juggled, meetings canceled, trips postponed, work reassigned.
All that can be especially trying for small business owners without the backup staff and other resources available in large corporations. It can be equally trying for small business employees who may not have large-company benefits such as cumulative sick leave and coverage under family-leave laws.
It may seem cold-hearted during such a crisis to talk about balancing work and family – naturally the child’s needs come first. Still, a balance must be struck, and the key to that is communication.
Roger, a government affairs specialist with a Wisconsin company whose college-age daughter is in remission after cancer treatment, came to an early and productive agreement with his supervisor.
“My first estimate of how the illness would affect my job fell far short of what actually occurred,” said Roger. “It worked out because when I learned my daughter’s diagnosis, I sat down and had a frank discussion with my boss. We basically agreed that she
A balance must be struck, and the key to that is communication.
would throw out the policy manual as long as I never made her regret it.”
Edward, a marketing executive at a graphics firm whose 3-year-old son was cured of cancer through surgery, addressed the illness and its impact in written message to his boss and the company’s human resources department.
“They were very gracious,” he recalled. “They told me to do whatever I had to do,” said Edward.
While companies typically give such leeway to parents caring for a sick child, parents should not simply assume that others in the workplace understand their situation. Even when bosses treat the situation sensitively, some co-workers may not.
Thomas, an employee of a delivery service whose teenage daughter has completed a successful cancer treatment, had an empathetic supervisor who gave him complete flexibility during the illness and arranged for others to fill in when he was gone. While his peers were also mostly supportive, Thomas heard the occasional gripe about his absences.
“When I heard the complaints, I would ask the person, ‘Would you care to trade places?'” Thomas said.
Communication can prevent such difficulties with peers and supervisors alike. The parent of a sick child should start the dialogue, rather than wait for management to do so. Unless bosses and co-workers have been through something similar, they may wonder:

The women in my cross-cultural workshops always ask, “What kinds of problems will I have as an American woman working with Asians?”
It’s a fair question, since the role of women in Asian countries does seem to be restricted compared to the opportunities for women in the US.
My answer usually surprises people when I say that most US female managers I know have had very few problems working with Asian men. There are exceptions, but there are good reasons for the effectiveness of US women in those cultures.
There is, however, one group of managers from the US that tends to have a great deal of difficulty in Asia; that group is comprised of young males. An incident at a recent conference which dealt with business in India exemplifies that point.
During that conference, a young man in attendance asked, “How do you get projects started? It always seems that they’re waiting for the blue hair to show up to sign on the dotted line.”
At first I didn’t know what he was getting at. The young man went on to explain that he was involved in trying to source a number of parts in India. He explained that he was running the family-owned business for his father, and that he was having difficulty making any progress in his discussions with Indian companies.
I told him that what he was experiencing was not atypical for a young American manager trying to accomplish something in Asia. There were three things that he should do: he needed to have his father write a letter of authorization for him using British-style titles; he needed to stop using slang and show respect and deference to those older than he when meeting people in India; and he needed to be patient, because impatience is a sign of incompetence in most Asian countries. Since it would take longer for him to demonstrate to Indian managers that he was a reliable business partner, he needed to stay patient while he worked the process.
That was not the response he was looking for. He said he needed his projects to proceed and that there must be some other ways to speed the process.
I gave him additional tips on how to speed up the process, but I reinforced the importance of maintaining patience in all his business dealings. The other members of the class with more experience in India echoed what I had said.
The workshop continued to explore the numerous problems in dealing with India that the participants had experienced, but I could tell that my young friend was basically unhappy with the workshop since we hadn’t dealt with his problem in a way that he wanted.
Later in the afternoon, since this workshop was being done just before the World Affairs Conference, I was fortunate to have as my guests T. P. Sreenivasan, deputy chief of mission
from the Embassy of India in Washington, D.C., and Dr. Pankaj, the consul from the Consulate of India in Chicago. The questions and discussion that evolved were fascinating until the young manager again raised his hand.
“How do you get projects started? It always seems that they’re waiting for the blue hair to show up to sign on the dotted line.”
The young man had repeated his earlier question with a lot of impatience. Sreenivasan answered his question very well. Again he stressed the importance of patience. After the workshop was over, Pankaj made an interesting comment to the young manager:
“About the time you begin to realize that your father might be smarter than you thought, your own children are beginning to question your wisdom. That is why age is respected in India.”
I was embarrassed that one of my workshop participants exhibited behavior that would not lead to success anywhere in Asia. However, I relate this story because it illustrates two points.
Age is respected in Asia. Therefore, a young manager will need time to build the credibility that an older man would have simply due to his age.
Some of the very characteristics of style that make young men successful in the US can be counterproductive in an Asian setting. The impatience that connotes eagerness and commitment to accomplishing the task in our culture actually sends a message of incompetence in the cultures of Asia.
Why, then, do women managers have fewer problems when trying to work in what appears to be very male chauvinist societies?
A look at the basic business styles that American women tend to exhibit are more in line with the business styles of Asia. The way US women negotiate, communicate, come to decisions, deal with time, context, and a number of other areas tend to be more like the styles found in the business environments of a number of Asian countries.
Also, women tend to make a greater effort to follow the rules of etiquette that they observe in the countries that they visit.
Whenever business styles are discussed, it is important to realize that there are wide variations in how different people act, and there are exceptions to every rule. Some Asian business men and women will act more like US citizens than the average US citizen. Also, there are US women who have adopted the business styles that are similar to their male counterparts.
The ability to understand and operate within the expectations of your business partners is key in any culture but more important when in cross-cultural situations. The characteristics that allow young men to be successful in climbing the corporate ladder in our culture tend to be counter to the success strategies of business men in other parts of the world.
Joe Geck is president of Accelerated Solutions Consulting in Waukesha.
May 1998 Small Business Times, Milwaukee

Nancy Bush’s personal attention revives office tower
It won’t be a difficult job,” real-estate developer/broker George Bockl assured his new executive manager in early 1994. “Just collect rents, lease suites and keep an eye on things – you know, manage the building.”
For the veteran builder and renovator of residential and commercial properties in the Milwaukee area, this was the third time around for his pet namesake – the Bockl Building at 2040 W. Wisconsin Ave.
In 1957, Bockl built the seven-story, 180,000-square-foot “modern” office building, then sold it in 1964, only to reclaim it 13 years later. The same scenario repeated itself in 1979 in yet another ill-fated land contract deal, this time with Hatch Farms Ltd. of Chicago.
By 1994, Bockl sensed the building was in default. It pained him to see his prized project deteriorate further. So, he did what he had to do – he bought it back yet again.
Then he hired Nancy Bush as his executive manager. Her first reaction was shock.
“Oh, my God!” she exclaimed on her first visit. “It was filthy – the carpeting, the common areas, bathrooms, elevators, the lobby – all of it. There was graffiti. In some hallways, fluorescent tubes were burned out.”
There were many unpaid bills from disgruntled repairmen and creditors. Utilities were in arrears. The delivery of heating fuel was sporadic, or nonexistent. Worse, the parking structure was in danger of collapsing. What a mess.
Undaunted, Bush set to work. Occupancy at the time hovered around 40%.
Not to worry. Armed with a notepad and a cheery disposition, she resolutely made the rounds, visiting all the remaining tenants in a week’s time.
Not a moment too soon. She tried charm, she wooed them. No dice. Most were either angry or bitter; others had stopped paying rent. She suspected a few wanted to strangle her.
“I knew I had to gain back their confidence and respect,” Bush recalls.
She made modest promises and took a deep breath. And then the renaissance began. To date, almost $2 million dollars have been spent upgrading 2040 W. Wisconsin Ave., restoring it to its original splendor when it was the only modern, centrally air-conditioned office building in town.
Overnight, Bush became “Ms. Fix-it,” a Gal Friday, decorator, leasing agent, mediator extraordinaire and eternal house sergeant supervising over a dozen building staff who worked in maintenance, security and cleaning. It was instant, on-the-job training, a sink-or-swim proposition – and she pulled it off.
On occasion, Bush pitched in herself, painting in a pinch, unplugging a clogged sink or toilet, or mopping up after floods. She even helped clean the dock area and fill in parking lot potholes. (The staff calls her “Hazel” – as in the comic strip maid.)
“I never ask them to do anything I wouldn’t do,” she offers.
Today she is knowledgeable about maintenance and has learned a bit about heating and cooling systems. Moreover, she can handle any emergency, defuse any situation.
Bush never lost a tenant during all the turmoil. Incredibly, a year later she had turned things around – aided, by a generous and sentimental owner. Occupancy has now more than doubled.
The tenants in the Bockl Building are a mix of commercial and medical arts specialists. It houses some 48 doctors and physicians, many from Third World countries and most of them US-trained. It has five medical labs, a half-dozen social service agencies, three counseling centers, a pharmacy, two salons – hair and nails – an optical shop and nine or so attorneys, to name a few. There are also a few start-up businesses and various entrepreneurs.
To more than 350 people each day it is “the office.” Another thousand clients daily troop through it for various appointments or medical treatments. It offers moderate rentals, valet parking and 24-hour security – weekends too, among other amenities. The challenge now is to balance the variety of tenants and services.
Nancy Bush grew up in Milwaukee and attended the old Spencerian College business school (now part of Concordia University), earning an associate arts degree and majoring in a business and medical assistant program. She also attended UW-Madison for two years.
At one point she wanted in the worst way to be an X-ray technician, working for doctors. It didn’t pan out.
In the early 1960s, she was a corporate secretary at The Milwaukee Journal. For a while, she even served as secretary to Robert Uihlein Jr., president of Jos. E. Schlitz Brewing. Then came a remarkable 26-year, all-encompassing stint with Manpower Inc. – along with two successive owners of MBTI , the business school division.
Initially she taught secretarial skills, then corporately administered and managed. She also developed educational programs; in 1969 she set up a business school in San Juan, P.R. for Manpower. It was seen as a potentially advantageous entry into the lucrative South American temporary help market.
Looking back, she considers herself “quite lucky” in her somewhat disparate but extraordinary career. As for the ubiquitous glass ceiling, she says it was never a factor, not even at Manpower.
“It’s up to the individual. If you want to sacrifice and work hard, you too can make it,” she says.
There are not many individual female commercial leasing managers today – mostly it’s handled by large firms or management teams. And few offer such a unique, hands-on schedule.
George Bockl calls her a savior for “saving” his building at 20th and Wisconsin. In the past Bockl & Co. ads have touted its “caring management.” With Nancy Bush running things, perhaps the word “nurturing” is a better fit or description.
For relaxation, Bush tends a flower garden and cooks. She also sits on the boards of the MACC Fund and the Avenues West Association. She is also involved in a dozen other groups, including a City Charter Schools task force and a favorite, the Milwaukee Police Department Auxiliary.
May 1998 Small Business Times, Milwaukee

Are your internal controls out of control?
by michaeleen hinca
As a business grows, so does its need to maintain controls. Accounting rules clearly dictate what “good control” looks and feels like. And when a company processes its data manually, internal controls are easily implemented and clearly monitored.
Add an automated accounting or business system and that same level of control is more difficult to maintain. No doubt, new systems bring greater efficiency for the smaller business that’s eager for growth. While it could be the best way to maximize the strengths of your people, it could also be a red carpet for abuse of power and theft.
Part of the problem is a lack of cross-training or little management overview, but mostly it is the result of the increased efficiency realized by automating the processing. What used to be a two- or three-person job can sometimes be done by one person with the help of an automated system. Managers have to consider how much access each individual involved in the processing of critical data should have.
Consider this case where a person was allowed too much access:
A small construction firm was run by a husband and wife team who processed all the accounting and job costing data manually. After deciding to automate their business, these owners hired a bookkeeper to handle the accounting functions while they focused on keeping their jobs profitable.
The new person appeared to work out well. He was smart, learned the system easily and seemed to enjoy working on his own.
One day, the bookkeeper called in sick. This same day the bank statement arrived. The bookkeeper usually balanced the account but the owner was concerned that the new employee might fall behind. To help, the owner decided to do the reconciliation.
During the analysis, checks were found that were written to the bookkeeper. The owners realized that in two months this employee helped himself to thousands of dollars simply by writing checks to himself, signing them, and cashing them. Later, he would alter the accounting files to bury the fraud and ensure that the accounts would balance.
That extremely painful and costly mistake happened because there were literally no accounting controls in place to protect the company. One person, in this case the bookkeeper, had access to all aspects of processing this company’s data.
To reduce their risk, companies can easily protect themselves in a couple main areas.
Accounts Payable – Good control means that one person writes the checks and another signs them and reconciles the bank statement. To reduce the risk even further, an owner or person with fiduciary interest in the company should reconcile the bank account each month. Also, have canceled checks returned by the bank rather than getting a detailed list of activity. This way the physical documents can be examined.
Accounts Receivable – To control the cash that comes into the business, use pre-numbered invoices or let the system number the invoices automatically. This way, any missing invoices would be easily identifiable. Cash sale transactions can be especially vulnerable. Be sure that all transactions have some sort of corresponding documentation.
General Ledger – Make sure that transactions cannot be changed or deleted. Require credit or debit memos to adjust invoices. For other transactions, insist the users prepare general journal entries with complete descriptions of why the transaction was adjusted.
Inventory Purchases – Most inventory systems have a “preferred vendor” field in the setup screen of each item. While this makes purchasing efficient because the vendor is pre-selected, it does not eliminate the need to “shop around” occasionally to be sure you’re getting the best value for your investment.
Because automation has made it easier for companies to do so much more processing, compiling and manipulating of data, all procedures should be periodically reviewed for deteriorating – or, as in the case of the construction firm, nonexistent controls. To identify where your company could benefit from better internal controls, map out your current processing routines. Then, review your findings with your business advisor or CPA. The important thing is that you take steps today to protect your bottom line.
Michaeleen Hinca is president of AccountNET, an independent consulting firm in Pewaukee that specializes in software evaluation. Sherry Koenig, president of Buy the Numbers Accounting Services in Hartland, assisted with the above article.
May 1998 Small Business Times, Milwaukee

Seven strategies to enhance your sales force
In an earlier edition, I wrote about how fundamental changes in corporate America were eliminating the need for the traditional salesperson. A similar fate awaits the traditional route sales manager.
You can easily spot a route sales manager, whether you’re an executive or a business owner, or you are the sales manager yourself. Is her time dedicated to “administrivia” – shuffling paper, auditing expense reports, writing fictional forecasts to show senior management just how well things are going in the field? How much of her time and energy is dedicated to – no, wasted on – quota enforcement?
And if those are the top two priorities, mentoring salespeople probably runs a distant third. That may be just as well; most companies promote the superstar salesperson, hoping to create clones. That strategy is as disastrous as it is pervasive. The qualities that make a superstar salesperson are typically incompatible with being a superstar sales manager.
Like the route salesperson, the route sales manager functions in selling’s old paradigm: as a vendor or problem-solver. But if you want your sales managers to function in selling’s new paradigm – the sales force as a business resource to customers – there are seven responsibilities that should make up their job description.

1. Remove internal obstacles: Most corporate cultures are hostile toward the sales force. Not deliberately or maliciously – it’s just the way they are. To create a world-class sales force, hire the best raw material, develop them with training and support, and create a friendly environment for them to succeed.
A good sales manager needs polish and organizational savvy to fight the internal battles – over compensation, technical support, conflicts over sales channels and cross-territory sales, to name just a few examples – freeing the sales force to do its job.
2. Develop and implement a system of accountability: We used to equate accountability in sales solely with numbers. The problem with that was exemplified by a sales manager who told me she was going to promote one rep who was blowing the doors off the numbers and put on notice another who was performing below quota. Having seen both at work, I was puzzled: I viewed the rep about to be put on notice as more effective than the one designated for promotion.
A closer look at the data showed a territory discrepancy: The quota-buster had been around for a while and had inherited a gold-mine territory with large, producing accounts that required scant selling ability.
The under-performer’s territory was filled with promising, yet underdeveloped accounts.
The “over-achiever” called on purchasing agents and merely went in and picked up orders, while the “under-achiever” was doing all of the right things, including getting to senior levels of management.
Measuring numbers isn’t enough to hold a sales force accountable. You also have to consider the quality of their day-to-day activities. But don’t get trapped into trying to quantify all they do, or you’ll end up with a staff that fills out weekly reports on how many brochures they’ve left in a customer’s lobby and how many phone calls they’ve made.
3. Reinforce a common sales methodology and sales message: The rules and language, steps and milestones of the sales process should be common throughout the sales organization.
Too many sales forces suffer from anarchy. A common methodology helps salespeople learn from each other and ensures consistency in positioning your product.
Customers and prospects can rarely make objective judgments about what we sell. Instead, they’re making judgments more on how we sell, and how we position what we sell.
It’s senior management’s responsibility to develop your company’s core positioning message, and the responsibility of the sales force to take convey that message consistently out in the marketplace, thus strengthening the company’s brand. Otherwise you risk making the same mistake as a technology company I consulted with. While some reps sold strategic technology solutions, hardware and consulting to senior executives, others were more comfortable selling tactical hardware-only solutions to lower level individuals. This unintended strategy meant the company was selling two different messages, damaging its brand.
4. Create realistic account bases: Salespeople want the solar system for their territory, while senior management would prefer they focus on the eastern half of Elm Street.
Remember my client who was going to promote the wrong guy because of disparate territories? A good sales manager must be familiar with the geography and accounts into which the company is selling so that they get distributed equitably – all the while fighting off the constant toadying of salespeople coveting plumb assignments.
A sales manager with the best interests of the company in mind must not allow salespeople too many opportunities to cherry-pick – and at the same time, needs to work against corporate America’s unfortunate tendency to penalize successful, hardworking salespeople by cutting their territories or raising their quotas excessively. In short, one more internal obstacle to navigate.
5. Provide the sales force with market and competitive data and qualified leads: It frustrates me no end to see highly paid salespeople sitting at their desks paging through a manufacturer’s guide in search of prospects. That is just plain crazy, and a horrible waste of the salesperson’s time.
It is the responsibility of the selling company and the sales manager to provide reasonably qualified leads – an easier task today with so many sources of information. Sales managers also must take responsibility for arming the sales force with good information about competitors. How else can we justify telling salespeople that, in order for them to win, they have to be able to make a competitor lose?
6. Be a conduit for best practices: One of selling’s dirty little secrets is that even salespeople on the same team are not naturally disposed to help one another. They’re driven more by recognition than by financial reward.
When Mary cracks the code on selling a particular solution or acing out a wily competitor, she’s likely to share at most only part of what worked. Again, there’s no malice; it’s not even conscious. It’s just the nature of salespeople: They want to win, and that’s always just a little harder when their peers are as successful as they are.
A good sales manager can work closely with salespeople to extract and share best practices. One way is to hold monthly best-practices meetings, with salespeople required to contribute to the discussion in an environment that is at once friendly and competitive, giving salespeople recognition for their contributions.
7. Take responsibility for mentoring and personal development: When you promote a salesperson to manager, evaluate closely that person’s skills and attributes. Does he or she have what it takes to mentor others?
Too often superstars promoted to manager don’t mentor or coach at all – they simply take over the sale. The consummate manager is able to draw out a salesperson’s own ability to develop and execute the strategy – and repeats that to ensure the entire sales force implements the same process.
Jerry Stapleton is president of The IBS Group, a large-account sales consulting firm based in Brookfield.
May 1998 Small Business Times, Milwaukee

In today’s global marketplace, strategic decisions about outsourcing, marketing and new product innovation can make or break a small Wisconsin manufacturer. Just ask Don Frantz. Frantz founded DuraSafe Lock Inc. in 2000, when he decided he wanted to sell a product line made by his first successful business venture, Frantz Machine Products Inc. of New Berlin.
However, Frantz quickly realized it was the wrong time to start a second company, because his lock manufacturing competition was outsourcing production to nations with cheaper labor costs, enabling them to sell their products for $5 less than his American-made product.
Then came the 2001 recession.
“It was impossible for us to continue with where we were and be successful at it,” recalled Cathy Kraatz, Frantz’s daughter and marketing manager for DuraSafe.
Frantz decided to partner with a manufacturer in China to save his company, and at the same time he attempted to design and develop different types of locks that his larger competitors were not producing.
“When we found that there was so much competition with the locks we were manufacturing at the time, we went to the drawing board and came up with some new innovative products that nobody had,” Kraatz said.
The launch of three new products within the last year has not only enabled DuraSafe to be noticed in the market, but it enabled the company to win a national award for innovation. Most importantly, the new locks have helped the company increase its sales by 200 percent.
Frantz’s strategy of selective outsourcing, marketing and new product innovation is paying off with a remarkable corporate turnaround for Durasafe.
“These three new products have completely carried the company to the next level, and with the attention we are getting from all over the world with our patented products, the company has completely turned around,” Kraatz said.
DuraSafe first bought the distribution rights and launched a product developed in Australia called the Couple-Mate last fall. The Couple-Mate is a winged guide that enables boaters to align their trailer hitch with their hitch ball in half the time.
“People have a hard time seeing where they are going when backing up their trailer, so this helps them guide the coupler directly over the ball. It has been a really good seller for us,” Kraatz said.
The Couple-Mate, although not DuraSafe’s own invention, fits well within the line of problem-solving products DuraSafe wants to be known for, Kraatz said.
In March and June, DuraSafe introduced its two new patented products, a line of Marine Electronics Locks to secure fish-finders, depth-finders and global positioning systems (GPS) on the deck of a boat, and the T-Rex Transom Saver with Prop Lock, a combination transom saver and propeller lock.
Frantz and Kraatz have even changed their mindset about locks, from planning ways to beat the competition at their own game to planning their next consumer-friendly invention.
“We create products that we know customers have a need for,” Kraatz said. “For instance, their GPS or fish-finders are getting stolen, or their propellers are getting stolen. We like to come up with problem-solvers, and people are taking notice. When they invest in an expensive propeller, they want to ensure that it is not stolen from them.”
The T-Rex, a combination transom saver and propeller lock, was actually suggested to DuraSafe by a dealer. According to Kraatz, the dealer mentioned that propellers can cost up to $800 and are stolen frequently.
Instead of adding an extra lock to a trailer or boat, DuraSafe came up with a two-in-one solution that is easy to use and costs between $59 and $69.
Kraatz said most consumers who tow their boats already have a transom saver to protect the outboard motor and to stabilize the transom while the trailer is towed. By adding a propeller lock to the typical transom saver, DuraSafe is providing consumers with insurance against theft of both the propeller and the transom.
DuraSafe’s most popular product is the Marine Electronics Lock. The company has sold 15,000 electronics locks since March. They retail at $14.99 to $16.99 per lock.
“The Marine Electronics Lock is a worldwide patent pending product that replaces one factory knob on either side of an electronics unit such as fish-finders, GPS units or very high frequency (VHF) radios,” Kraatz said. “You screw it in like you would the factory knob, turn the key, and it spins freely in the locked position.”
“Every time the fish-finder customers go to a marina, they have to take all of their equipment off of the boat deck, tuck it down in the galley, lock it up. Sooner or later, the plug is going to wear out from constantly taking it in and out,” Frantz said. “That is why the electronics lock is so popular, because it is what consumers are looking for.”
DuraSafe is in the final stages of development for electronics locks for VHF radios, which Frantz suspects will become a top seller because of radio requirements for boaters.
With all of DuraSafe’s recent success, Frantz and Kraatz are now able to plan for the future growth of the company and are finally making a profit.
“Business is a lot different for us now than in the past because everyone wants our products,” Kraatz said. “In the past, we were competing with existing products, trying to get the business while offering nothing new. The distributors already had similar products, so why should they change? Now, these new products are getting our foot in the door.”
Frantz and Kraatz saw the marine industry’s reaction to their products firsthand when they attended their first trade show. The Marine Aftermarket Accessories Trade Show (MAATS), an annual event presented by the National Marine Manufacturers Association (NMMA), was held in Las Vegas in July.
Frantz said he did not walk out of any meeting at the show without a buyer purchasing something. Many took at least three products made by DuraSafe, he said.
The NMMA awarded DuraSafe with the 2004 Product Innovation Award for the Couple-Mate self-aligning trailer hitch guide. The Marine Electronics Locks line has been featured in seven trade magazines.
“We learned a lot from the MAATS show and have had such great feedback from that show that we will definitely be there next year,” Kraatz said. “We will not concentrate on the marine industry, but it has consumed so much of our time that it is the direction we are currently going. There is so much potential outside the U.S. that we have no idea how much the business can grow.”
Frantz said the fact that to compete in the lock industry means that he must outsource his production still bothers him, but it is a necessary evil to enable him to stay in business.
Although they would rather sell American-made products, Frantz and Kraatz said because the competition is outsourcing to save money on production, the price difference would deter consumers from choosing DuraSafe over a competitor’s brands.
“There was somewhat of a price difference for products being made in the U.S. vs. outsourcing and importing them,” Kraatz said. “Basically, when we got to market, we found that if we couldn’t meet or beat the price, there was really no interest, regardless if it was made in the U.S.”
If the outsourcing trend is reversed in the future by tax breaks and other incentives for companies to keep their manufacturing operations in the United States, Frantz said he would consider starting up the machines at Frantz Machine again.
Until that equation changes, American manufacturers will continue outsourcing their production to China to reduce their costs for production, employee wages, health care insurance and environmental compliance, Frantz said.
For now, Frantz instead is focused on next year’s MAATS event, where DuraSafe has already signed up and doubled its booth space.
“We already have four new ideas. Three are patent-able,” Frantz said. “It is hard to say if we can continue to keep up with innovative ideas and produce an innovative product, but that is our goal. We want to keep inventing or coming up with something that is not out there, or something that is out there, only we are going to make it better or lockable.”
Frantz and Kraatz currently have three other employees at DuraSafe who help with product development, testing and design.
DuraSafe operates within the Frantz Machine building at 1785 N. Johnson Road in New Berlin, but Frantz said he is in negotiation for 2,500 square feet of additional warehouse space nearby.
He wants DuraSafe to have its own location, which may be sooner than either Frantz or Kraatz could have expected a couple of years ago.
“Every day, there is great news,” Kraatz said. “When we started in 2000 as a lock business, we hit a wall when we realized we couldn’t make our products in the U.S. or at Frantz Machine. Now, with our new products, we have had interest from France, Italy, New Zealand, England. We have already shipped to Australia and just received a call from distributors in Canada and South Africa.”
Frantz said he decided to make locks because the receiver locks for trailers were something his machine shop could easily produce on the side and would allow DuraSafe to be a separate company.
Since innovation became the answer to DuraSafe’s shortcomings, convenience and peace-of-mind for his customers are now Frantz’s top priorities.
“If you can stop products from being stolen from consumers, especially when they are on vacation, that is a problem-solver in itself, and it is helping the person,” Frantz said. “If you get your fish-finder stolen, it ruins your fishing trip, or even worse your boat or trailer, or your propeller.”
The success of the new products also is increasing sales for the receiver locks that DuraSafe originally tried to sell to distributors. Kraatz said the rust-resistant stainless steel receiver locks that DuraSafe produces are becoming more popular because of their ability to cross over from the boating industry to the automobile and towing industry.
When the company maximizes its potential in the marine industry, Frantz hopes to create locks for other applications. DuraSafe already has a motorcycle lock line with locks for helmets, jackets and wheel discs.
“We are basically targeting the marine, hunting, fishing and automotive industries,” Frantz said. “But we can branch out. I mean, we can make a lock that locks anything. We have the research and development capabilities at Frantz Machine. Show us what you want locked, and we will lock it.”
New products
DuraSafe Locks Inc. launched three new and innovative lock products within the last year that resulted in a national award and a 200 percent growth spurt for the company.
Couple-Mate Self-Aligning Trailer Hitch Guide
Launched by DuraSafe last fall, the Couple-Mate was developed in Australia by Impulse Marine. Customers can back their trailer coupler directly over their hitch ball by placing the winged guide around the ball. No more scratches or getting out of the tow vehicle to make sure everything is aligned. The product has a retail price of $39 to $49.
T-Rex Transom Saver
with Prop Lock
The T-Rex was launched in June. The device is a combination transom saver and propeller lock that stabilizes the outboard while a boat is being towed and prevents theft of both the propeller and transom saver. The T-Rex was developed by DuraSafe and is the only transom saver that is available with a propeller lock. Don Frantz, president of DuraSafe, developed and obtained the patent for the product, which has a retail price of $59 to $69.
Marine Electronics Lock
DuraSafe launched the Marine Electronics Lock in March. The lock replaces the factory knob on brackets for electronics such as fish-finders, global positioning systems (GPS) and depth-finders to deter theft. The lock acts as a knob, but when locked,
spins freely. Because screw lengths and widths for electronics vary by manufacturer, DuraSafe offers nine different sizes. DuraSafe is preparing to launch a Marine Electronics Locks line for very high frequency (VHF) marine radios in three different sizes. The system was developed and patented by Frantz. The product has a retail price of $14.99 to $16.99.
August 20, 2004, Small Business Times, Milwaukee, WI