This issue marks the beginning of our fourth year of publishing Small Business Times. We fondly recall those first few months in business, confident that southeastern Wisconsin would accept a publication such as this, but at the same time, feeling a bit of the anxiety common to any entrepreneurial venture.
The anxieties soon abated as you, our fellow business owners, welcomed each month’s package of small business success stories, advice from business professionals, opportunities listings and other information which we hope helps make your business more profitable.
The formula for Small Business Times proved so successful that as a business, the paper grew rapidly and faced the same growth issues and challenges faced by many of the businesses we feature each month.
One of those challenges has been establishing our place in the market and identifying the audience we serve. We often hear comments from people afraid of the term “small business.” We, on the other hand, embrace the term. To us, small business represents the dynamism of the American economy.
Small business means innovation, job creation, flexibility, determination, vision and an understanding of the power of the individual.
Each day as we go about our business in southeastern Wisconsin, we see those attributes among the 97% of all companies which bear the title “small business.”
We’re glad to be among the legion which is carrying America into the next millennium.
And we feel fortunate to be in southeastern Wisconsin – an area written off back in the ’70s as part of the Rust Belt, but today an area boasting of such a strong economy that there is virtual total employment. It’s also an area with a bright future thanks to such projects as Miller Park, the Midwest Express Center convention center, the Milwaukee War Memorial/Art Museum addition, and revitalized downtowns throughout the area.
The power of small business has been a major factor in making the picture so bright. We at Small Business Times, in this anniversary issue, renew our commitment to bringing you the best information to help your business maintain its momentum into the next millennium.
At this time, we offer a special thanks to our advertisers who have placed their trust in Small Business Times and who have thus made this business viable. And we say “thanks” to the nearly 100,000 people who read the paper each month, and to all the business owners who have allowed us to share their stories with others.
— The publishers of Small Business Times
April 1998 Small Business Times, Milwaukee

The following loan guarantees have been approved through the Milwaukee office of the U.S. Small Business Administration during February:
All Metal, 102 North St., Sharon 53585, $56,500;
A’Loire Salon, 730 E. Washington St., Slinger 53086, $30,000, First Bank of Oconomowoc;
Artword Advertising, Inc., 933 N. Mayfair Rd., Wauwatosa 53226, $100,000, Ridgestone Bank;
Culver’s of Muskego, $150,000, Firstar Bank Wisconsin;
Culver’s of Hales Corners, 6101A. S. 108th St., Hales Corners 53130, $400,000, Firstar Bank Wisconsin;
Damage Control & Restoration, 3303 W. National Ave., Milwaukee 53215, $80,700, Layton State Bank;
Diacar Products Co., 6814 S. 112th St., Franklin 53132, $70,000, Firstar Bank Milwaukee;
Doucette Donegan & Russell Insurance, 159 W. Garland St., Jefferson 53549, $137,000, Jefferson County Bank;
Imme Transport, Inc., 7132 Peterson Ct., Waterford 53185, $300,000, Bank One Wisconsin;
Interstate Cryogenics, Inc., 3502 66th St., Kenosha 53142, $72,500, State Bank of St. Cloud;
Marshall’s Gas-N-Goods, Inc., 209 Madison Ave., Cascade 53011, $375,000, Firstar Bank Wisconsin;
Nelson Transfer, Inc., 7769 105th Ave., Kenosha 53142, $100,000, M&I Bank of Racine;
Novels Country Inn, 229 E. Main St., Eagle 53156, $170,000, Waukesha State Bank;
Tinder Box, 479 Main St., Saukville 53080, $268,900, Grafton State Bank;
Whitewater Subway, 1185 W. Main St., Whitewater 53190, $182,250, The First Citizens State Bank of Whitewater.
April 1998 Small Business Times, Milwaukee

More and more organizations are discovering that while their current accounting system has served them well, it’s time to put their old system out to pasture.
They hope to extend the boundaries of their financial systems, integrating the accounting department with other critical operational areas.
With the advent of Windows-based open architecture accounting, that can finally become a reality.
Many organizations prefer the reliability of DOS-based accounting products simply because the maturity of those systems means they have relatively few bugs.
The market for DOS-based products is shrinking as software manufacturers focus on Windows-based multi-user, or “open architecture system,” products now.
Hardware capabilities have outpaced the limitations of DOS-based financial software, while new Windows-based multi-user products are harnessing this extra power, exceeding the accounting functionality of their DOS predecessors.
It’s time for change.
The most natural progression your company can take in meeting the demand for change is upgrading to a new financial software package, allowing you the same mobility as your continually progressing corporate mission.
If you want to continue the “built-in” quality of your accounting department and enjoy its effect on your bottom line, you cannot afford to lose the years you already have invested in a staff which knows your operations and can assist in reaching those corporate goals.
If the employees are going to buy into the new system, it is of high importance to get them involved at ground level. Actively present the idea that this is their system, not just yours.
The following outline is helpful in stepping through the search and evaluation process.
? Define the business requirements. This critical first step is often overlooked or under-scrutinized. Decide what the system should accomplish. In surveying all system users, analyze the old system and decide what operational elements should be retained, such as data entry and profile information screens, reports and lists.
A good financial package will allow you the ability to customize the out-of-the-box software to fit your basic needs.
? Determine the data you would like transferred to the new system, such as vendor data, customer files and account history. Many companies are frightened at the thought of switching to a new system because they think it means the loss of historical information. Not true for a quality financial software application.
? Review your business processes to determine if they can be made more efficient. Part of the planning process involves gathering information from the correct internal sources, including all levels of staff and perhaps even customers.
Requesting input from these people will not only provide key information, but will heighten their interest in the project and, ultimately, assist in acceptance.
? Locate potential vendors in accounting and financial management journals. Attend industry trade shows and seminars. Talk to nondirect competitors and consultants who specialize in accounting and financial system solutions. Check out Web sites and use online software search services that can be found on most national bulletin boards or the Internet.
?Issue a Request for Information (RFI). An RFI is a document you prepare that states the basic requirements of your desired system and solicits information from vendors. This document is a derivative of information gathered in Step 1.
Send an RFI to different vendors, asking them to respond by a specified date. This is a relatively quick method of identifying which vendors might meet your needs, as well as identifying unresponsive vendors.
? Evaluate potential systems. Review the information gathered from the RFI to narrow the field of potential vendors. This would be a good time to schedule system demonstrations with the potential vendors.
? Check references. Before you actually view a demonstration, request references from vendors. References should include organizations of similar size that have similar needs to yours. Those organizations should be receiving vendor support and service from the same office where your support and service will be provided. It also helps to have a list of all users in your area. When you contact references, have a checklist of questions.
? When possible, visit the site of current software installations. You’ll gain lots of good information to factor into your decision.
? Check the vendor’s stability. Dun & Bradstreet may provide you with some answer to the vendor’s financial situation. Make it clear to the vendor that you seek a long-term relationship with them and regard this information as critical to your decision-making process.
? View the system demonstrations. Structure the demonstration so that you see the features you are most interested in. Do not let the sales representative control the demonstration by only showing you the bells and whistles. Include staff at the demonstrations.
One of the most beneficial elements in a smooth transition is to have your staff behind the change.
? Request a proposal from the vendor. This document from the vendor outlines what services and products they will provide at what cost. Make sure it is an all-inclusive quote; insist on having an acceptance time period. Do not pay in advance.
Jeffrey Morin is a financial software consultant with SVA Consulting, Inc., an information systems solution provider with offices in Milwaukee, Madison and Rockford.
April 1998 Small Business Times, Milwaukee

In a recent column I pointed out the need for salespeople to constantly ask themselves three basic questions about any opportunity:

Should I pursue it? Can I win it? Will it be good business for my company? The criteria I offered focused more on the first two questions.

This month’s topic – whether or not a particular large account prospect will, in the end, be a good customer – falls under the framework of “philosophical alignment.”

If you think the term is just academic fluff, consider the story of Matthew, a salesman for a technology-based company and client of my firm. Matthew suggested he had an account that would be perfect for a “partnership” relationship with his firm: “Alpha Corp.,” a major manufacturer of hand tools and hardware, that had been a prospect of his for more than a year.

Matthew had an excellent contact at Alpha, a true “coach” named Sean, on whom the two of us made a Knowledge Call. But when Sean greeted us in the lobby and took us to a nearby vendor-meeting room rather than to his office, I became a little suspicious.

Meanwhile, Matthew positioned our Knowledge Call with all the right sound bites: “Sean, it’s our philosophy that the better we understand your business, the more value we can bring to you,” he said. “We’re on a homework mission here.”

“That sounds fine,” Sean replied.

One of my first steps in a Knowledge Call is to get a thorough understanding of both the formal and informal organizational structure of the customer. As I often do, I put a copy of our hand-drawn organization chart in front of Sean and solicited his help in filling it in.

Sean froze up. Rather than dodge the issue, I asked him if he was comfortable with the direction in which we were going.

“Well, I guess I’d be comfortable with it,” he replied. “But we have a corporate policy against sharing information about our company with suppliers, including information about who reports to whom.”

This call lasted all of 15 minutes, including 10 minutes of warm-up. In the car after the call, Matthew looked at me both embarrassed and puzzled. “What the heck was that all about?” he asked.

Welcome to the world of philosophical alignment. It was an especially useful lesson for Matthew. When I introduced the term at our kick-off seminar with this client’s sales force, it was Matthew who responded, “It sounds like you’re saying that if our customer’s building is brown, we should be saying to the customer, ‘Gosh, your building is brown Mr. Customer, and so is ours, therefore, our two companies should do business together and have a partnership.'”

Of course, that’s not what it is at all. Philosophical alignment is a way of measuring the quality of a potential relationship between two companies – in short, whether this opportunity is going to be good business.

To establish how philosophically aligned a particular prospect is with your own company, consider the following characteristics:

Information Sharing: How openly does this company share strategic information about itself with suppliers? This, of course, was at the heart of the philosophical misalignment between Alpha and Matthew’s company. You’d be surprised at how many companies talk about partnerships with suppliers, yet refuse to share information. For them “partnership” is just a euphemism for getting the lowest price.

Core Competency Focus: Is this company attempting to focus only on what it does best, or does it try to do everything internally? How much is it currently outsourcing? One very large and successful Wisconsin company – a favorite target for salespeople – is philosophically misaligned for partnerships with almost any prospective supplier. It has a “company store” mentality. This manufacturer has its own doctors and nurses and pharmacists, even its own interior design department for designing office layouts. Those aren’t the trademarks of a company looking for true supplier partnerships.

Purchasing Philosophy: Does the company focus on unit price or total value? A unit price company simply compares the cost of Red Widgets from several suppliers, figuring that all Red Widgets are created equal. At the other end of the spectrum are companies that measure the total value of supplier relationships. They understand that the purchasing process itself costs money. So does maintaining relationships with several suppliers. Thus, I also look at whether the prospect is attempting to reduce its supplier base – an increasingly popular trend in corporate America. On a Knowledge Call a client and I learned that a very large corporation was cutting down from more than 30,000 suppliers to a stunning 1,900. That’s a pretty partnerable company.

Senior Management Involvement: If a target account’s senior executives never meet with suppliers, they probably view them simply as vendors – not partners. Companies whose senior executives take the time to meet with suppliers send a message that they value supplier relationships.

Centralized Structure: Partnering with suppliers is a relatively new concept, yet the practice is most successful when the customer company has a more traditional, centralized structure instead of one of those newfangled “matrix” organizations – most likely because it takes clear lines of authority to transmit the cultural change that partnering requires.

Technology Leadership: Companies that attempt to be leaders in adopting new technology seem to be more interested in partnerships. Evidently they’ve developed a greater willingness to trust suppliers. So look among your prospects for companies that adopt new technology quickly.

Customer Philosophy: A prospective customer that’s a prime candidate for partnership with suppliers is attempting and successfully establishing partnerships with its own customers. If it isn’t, that’s a red flag.

One word of caution: As you try to assess philosophical alignment, make sure you’re getting the perspective of the company and its senior management – not just that of your own contact.

Chasing bad relationships is just too expensive. Ask your salespeople to explain the philosophical alignment between your own company and the target. If you get a blank stare, explain these criteria and ask them to assess how the account measures up. It’s a quick test that could save your company a fortune in money and time.

Jerry Stapleton is president of The IBS Group, based in Brookfield.

April 1998 Small Business Times, Milwaukee

One of the factors driving growth in Kenosha County has been the availability of high-quality industrial parks for businesses to locate in the area. Jerry Franke, vice president of WISPARK Corp., a wholly-owned subsidiary of Wisconsin Energy Corp., sees a strong market for developers in the Kenosha area.
WISPARK recently completed development of the Radisson Hotel and Conference Center with an attached Chancery Restaurant. Until its opening in January, Kenosha did not have a full-service, business-class hotel. It is a 120-room hotel that can accommodate meetings of up to 500 people.
WISPARK is also the developer of LakeView Corporate Park, a 1,500-acre mixed-use real estate development located in Pleasant Prairie, west of Kenosha. It is on Interstate 94 within one mile of the Illinois/Wisconsin border. The development includes a 1,344-acre business park, a 170-acre office park and a 425-acre nature conservancy area on the Des Plaines River floodplain. Its transportation linkages include two railways and proximity to the interstate highway system.
Of the 54 companies in the park so far, more than half of them are from Illinois.
“Our attraction to Illinois businesses is that we have lower priced land – less than half the cost of competitors in Illinois,” Franke says.
LakeView still has approximately 600 more acres to develop, and is geared toward manufacturing, unlike some industrial parks that want offices and light industry.
“We insist on quality buildings, which appreciate in value,” Franke says. “When businesses are located in a positive setting, with green space and pleasant surroundings, it helps them sell their products and services to their customers. The building speaks volumes about a business, and LakeView speaks high quality.”
LakeView Corporate Park received an outstanding compliment when the National Association of Industrial and Office Parks gave it the Award of Excellence for commercial real estate in 1996.
“This was an award to the Chicago chapter honoring a Kenosha industrial park,” Franke says. “It was the ultimate compliment that we were recognized for our positive attributes.”
WISPARK is also the developer of the Business Park of Kenosha, a 140-acre municipal industrial park on state Highway 158, less than one mile east of I-94. Those 2- to 15-acre lots are zoned for heavy industry, with full service utilities. The Business Park of Kenosha is developed as a public/private partnership between WISPARK, Kenosha Area Business Alliance and the City of Kenosha.
“We work closely with industrial brokers in Chicago and Milwaukee to attract people to our locations,” Franke says. “Our great location, good working relationship with the community, and low costs are attracting businesses from all over to locate in Kenosha.”
April 1998 Small Business Times, Milwaukee

It’s been referred to as the “Good Housekeeping Seal of Approval” for the Internet.

And Randall Hoth hopes it catches on.

It’s BBBOnLine, a program aimed at helping assure consumers of the reliability of commercial Websites.

“The marketing volume on the Internet increases each day, yet no one had developed a method of separating the legitimate online offers from the dubious ones,” says Hoth, president of the Better Business Bureau of Wisconsin, based in Milwaukee.

BBBOnLine is the solution, he believes.

“Our new service will provide online marketers with the means to inform consumers about their commitment to ethical business and advertising practices.”

Companies that commit to the BBBOnLine program standards will be authorized to display a BBBOnLine seal on their Website and in the Website advertising.

Included in the review process is an onsite visit to the company.

“This onsite visit to the company’s physical premises is designed to ascertain that the Web site is supported by a functioning business and is not simply a façade,” Hoth said. “Furthermore, BBB will be monitoring advertising and use of the seal by BBBOnLine participants in our service area.”

A click on the BBBOnLine seal will take the Web browser to a confirmation page demonstrating that the company is an authorized participant in the program. For the business, the seal offers a mark of reliability, Hoth says.

“BBBOnLine also benefits businesses seeking to portray reliability and promote consumer confidence in the Web shopping venue,” he says, noting that the BBB name is well-known and respected among consumers.

Hoth sees the service as a way that businesses can self-regulate their Web-based operations.

“All companies should share an interest in demonstrating to consumers, regulatory authorities and the public that the business community can effectively self-regulate this new marketplace,” Hoth says. “If honest competitors do not quickly demonstrate that the online market is reliable, many consumers could be reluctant to try this new technology and the lost business opportunities could be staggering.”

Additional information on BBBOnLine is available at the Better Business Bureau of Wisconsin online site at www.wisconsin.bbb.org.

April 1998 Small Business Times, Milwaukee

Video surveillance of employees could bring on lawsuit
Employers using video surveillance to monitor their employees’ activities in the workplace need to proceed with caution, according to a Milwaukee labor and employment attorney.
Current estimates are that nearly one quarter of the nation’s work force is currently subject to video surveillance.
“Under the Electronic Communications and Privacy Act, the federal law which regulates the interception of electronic and oral communication, an employee may sue his or her employer for intercepting any wire or oral communication by that employee,” says Timothy L. Stewart, a labor and employment attorney at Davis & Kuelthau law firm.
Some Courts have held that an employer may be able to avoid liability under that law by using video surveillance systems that do not include audio recording devices, Stewart said.
Built-in exceptions to liability under the law include:
? The prior consent exception. If one of the parties to the conversation recorded has consented to the recording of the conversation, then there is no liability for interception or recording of the conversation.
? Reasonable expectation of non-interception exception (for oral communications). In order to be able to sue his employer, the employee must be able to show that he had a reasonable expectation of non-interception. The best way for an employer to defeat this expectation is to give a blanket notice to its employees that they are being monitored. The more specific the notice is about the monitoring, the more likely an employee would not have a reasonable expectation of non-interception. For example, the notice might contain the exact location of all recording devices.
“Public employers may be at greater risk when using video surveillance equipment because of the constitutional implications involved,” said Stewart.
“Generally, the public employer is prohibited from violating its employees “reasonable expectation of privacy,” which is mandated by the Fourth Amendment of the U.S. Constitution.”
A 1997 federal court case held, however, that the use of soundless video surveillance equipment by a quasi-public corporation (a telephone company) to monitor the workplace did not infringe on its employees’rights.
Whether the use of video surveillance equipment is a mandatory subject of bargaining in a unionized workplace remains in question. The National Labor Relations Board recently held that the use of hidden video surveillance equipment was indeed a mandatory subject of bargaining. However, the federal Court of Appeals with jurisdiction over Wisconsin held in 1993 that electronic surveillance was a management right.
Because of the inconsistency of arbitration decisions, it is difficult to predict whether video surveillance is a mandatory subject of bargaining. However, it seems clear that concealed video surveillance without notice to employees is more susceptible to abuse by the employer and therefore, may give an arbitrator or court more reason to rule that it should be a subject of bargaining.
April 1998 Small Business Times, Milwaukee

SBT editor
While the year 2000 computer bug issue may pose gloom and doom for millions of businesses, it’s comforting to know that those of us in the publishing business are pretty much immune from the problem – at least the majority of us who rely on Apple computers.
Apple computers will not die when the clock strikes midnight on Dec. 31, 1999. The company’s Macintosh computers have always had the ability to transition past the year 2000, Apple reports.
Apple says its Mac operating systems can correctly represent dates through the year 2040, and that its date-and-time utility covers dates to the year 29,940.
Owners of some older, non-Macintosh Apple II models who use old operating systems, however, will have to update their operating systems.
A further advantage of Apple computers is their ability to recognize that Feb. 29, 2000 does exist. The year 2000 is a leap year and, apparently, many computers aren’t programmed to accept Feb. 29 that year as a valid date.
While the Mac operating systems are basically free of the year 2000 problem, some software Mac operators use may be affected. Those include the popular Microsoft Word and Excel programs. Excel, for example, doesn’t realize that Feb. 29, 2000 exists. And, depending on the version of Word being used, that software could force your computer to lock up or fail to locate files dated beyond Dec. 31, 1999.
One of Microsoft Websites, at www.microsoft.com/CIO/articles/Y2K_issues&solutions.htm, has more on the problems and what to do to correct them.

Old-line managers are out of touch
Roadblock:
Morale in the company remains consistently low. People complain about their work, their coworkers, the other departments, and especially about management. Some are very open about saying the better-than-average pay scale is the only thing keeping them there. The owners and managers of the firm can’t understand what the problem is. For decades profits have been excellent and their employees have been generously compensated. The company has grown, as has its reputation with both customers and competitors.
Problem:
The culture of the company is rooted in the past. While the leaders are able to point with pride at their success, new managers and leaders are not being developed to help the firm maintain and build on that success. Existing managers remain focused on assigning tasks and monitoring results rather than on supporting and developing their people. Communication is from the top
New managers must become tomorrow’s leaders.
down and employees are valued most for doing just what they are told to do. Competition between departments is evident, especially between production and sales. The leadership believes that money is the primary motivator and is unaware of the other factors that create job satisfaction. This autocratic style worked in another day and time but is out of sync with today’s working environment.
Solution:
Over time, the leadership must shift the culture of the company and develop a participatory and collaborative environment. New managers must be groomed to become tomorrow’s leaders and current managers must change their leadership style. Employees want and need the opportunity to share both responsibility and accountability. It’s time for management to relinquish some of its control.
As managers become coaches and mentors, their relationships with the employees will strengthen. Morale will rise and complaints diminish when communication becomes a two-way street and people are valued for their ideas as well as for the work they do. With an open, participatory environment where everyone feels a significant part of the team, this long-established company will be in the best position for continued growth and profitability.
Solutions to Roadblocks are provided by The Performance Group Inc, of Brookfield. Small Business Times readers who would like to see a “roadblock” addressed in this column can contact the company at 784-2922 or via e-mail at perfgrp@execpc.com.
April 1998 Small Business Times, Milwaukee

Program helps students develop critical thinking

Employees at Firstar’s New Berlin bank thought it would be a worthwhile endeavor to help schoolchildren gain insight into the work world through New Berlin’s “Adopt-a-School” program.

They accomplished that, and more.

When a group of 21 students from the Glen Park Elementary School showed up at the bank last month, the seven Firstar employees who participated gained insight into their own jobs, as well.

“At one point, I told one young man my title,” recalls Mike Simmer, senior vice president with Firstar’s Retail Financial Group. “He responded politely, letting me know that was all well and good, but he wanted to know what I really did. These kids were positively inspiring.”

The New Berlin Chamber of Commerce was instrumental in getting Firstar and Glen Park together in 1997. Through the “Habits of the Mind” program, students learn what it takes to make it in the business world.

“This was much more than your basic ‘see-the-vault-and-here’s-how-we-count-coins tour,'” Simmer says. “I was amazed at the thought that went into the students’ questions. They focused on the kind of life skills – the qualities and skills required to do an important job in any field.”

The Adopt-A-School program was the result of hearing from many businesses in the community that they are having trouble finding workers with the proper skills, says Rick Eckart, executive director of the New Berlin Chamber.

“This has been a fantastic program – well-received by the students, administrators, parents, and the employees of the bank,” Eckart says. “They’re learning a lot about the way they think and approach their jobs through helping the kids in this program. I was very impressed by how articulate and bright these students were and how eager they were to participate and learn. The employees and officials at the bank were also impressed with the program – definitely a win-win.”

The New Berlin program is part of Firstar’s commitment to support young people and education, says Firstar’s Randy Duke. Over the course of 1997, representatives of the bank and members of Glen Park’s faculty met a number of times to study the “Habits of the Mind” concept. They developed a plan which incorporated pertinent discussion and activities into the school’s curriculum during the first two months of this year, leading up to a March 10 visit at the school.

“Habits of the Mind” is an element of a program called “Dimensions of the Mind,” originally developed at the Mid-Continent Regional Educational Laboratory in Aurora, Col.

The students’ interviews centered on how the bank employees themselves use “Habits of the Mind” thinking, which includes critical thinking which encompasses accuracy, clarity, open-mindedness, respect and restraint, creative thinking, and evaluating feedback.

Robin Talbott, office manager at Firstar’s Waukesha office on Silvernail Road, was an enthusiastic participant in the program.

“I thought it was awesome,” Talbott said. “I think if every school would begin teaching Habits of the Mind, when the kids enter the workforce it would make a real difference. I was amazed at how focused they were when we met with them.”

Talbott would like to mirror the New Berlin program in the Waukesha area. Talbott was impressed with how the students asked questions about how a given job relates to a person’s life.

“It was most definitely a great refresher for all of us and how we relate planning, for example, to our everyday lives,” Talbott says. “I’ve never felt so good about a school program. It’s the first time I ever walked away feeling it was definitely something that can have a positive impact not only on me in my life but on my staff as well.

“A 6th-grader asked me about evaluation and what kind of feedback I give to my employees,” Talbott recalls. “That floored me.”

Firstar provided the students with professionals to interview regarding how they use Habits of the Mind-type thinking every day in their jobs or even in their personal lives.

“They’re not teaching the students what to think, but how to process their thoughts,” says Robert Figueroa, Firstar-New Berlin’s office manager.

April 1998 Small Business Times, Milwaukee

Making a company Year 2000-compliant involves auditing each and every computer program used by the company – a labor-intensive process which can take anywhere from six to 18 months. Every line of programming has to be checked. Some of it is written in computer languages no longer used or understood.
How did we get into this mess in the first place?
Back in the 1960s, ’70s and ’80s, storage space on mainframe computers was valuable, and it was cheaper to skip two digits in the standard date field: MM/DD/YY. The date “19” was assumed. Programmers carried the concept over to personal computers, which received a boost in performance by carrying the two-digit date field.
According to Year 2000 guru Peter de Jager, the problem is largely software-related. Current estimates are that as much as 90% of software code is potentially infected by the Year 2000 problem.
Here’s what Jeff Ray, vice president of emerging technologies for Detroit-based Compuware, says businesses need to think about when it comes to a Y2K fix:
Step 1 – Identifying the problem
First of all, assume you have a problem no matter how small your business. Next, develop some kind of strategy for remedying the problem. If you have one, your information technology specialist needs to come up with a plan.
Make a technical case that states how he/she intends to go about finding the problem. There are many products available that scan and look for these infections. One such product is called JumpStart 2000. Keep in mind that you’re going to get a lot of hits for things that won’t fail. These are called “false positives.”
Step 2 – Fixing it
There are three common ways for fixing the Y2K faults.
The most permanent way, and the most expensive, is to turn two digits into four. But once it’s fixed, it’s fixed for good.
Next is the most commonly recommended approach called “windowing.” This method tricks the computer into thinking it’s dealing with the proper century.
“We recommend to our clients that they use windowing because it is reasonable in cost, and manageable,” Ray says. “The only problem, potentially, is that you might have a problem 50-60 years down the road, because you haven’t permanently fixed it. But by then, the odds are that computer language will have changed.”
Windowing is like a sliding window: when you get evidence of infected date, say the number is “90” and the computer doesn’t know if it is 1890, 1990, 2090. So, take a pivot date, such as 1970; this embeds a little bit of logic in the computer. If the two-digit number is greater than 90, it points it toward the proper century.
“We think it is the preferred strategy because it means we don’t have to expand the date fields in our files,” says Jim Bloom of Milwaukee Public Schools.
If you run an insurance company and you are dealing with calculations that span backwards, you could have some problems with the windowing method, Ray says.
The third way is to use a sub-routine.
Another way to fix it is to replace the code.
Step 3 – Testing it
You’ve gone through and identified the bugs and performed your fix. But, you won’t know whether it is fixed until you test it with future dates to see if you get the right answer.
“Companies in our industry have never done a good job of software testing,” Ray says. The challenge with testing is you’re dealing with floating rules; the rules don’t stay constant. It’s very easy to test for getting the same answer, Rays says. You have to be very clever in time-dimensional testing. The hard part is: How do you test when the rules change? The most important part of testing is to involve the end user.
“You have to involve the guy who uses the actual table, the Subject Matter User (SMU),” Ray says. “You cannot test for stuff you don’t know the answers to. Begin the testing discussions before you start altering the code. Capture a snapshot of all the answers the system has today before you mess with your code.”
Anyone who relies on outside suppliers or e-commerce should be concerned with this, Ray adds. About nine months ago, auto companies woke up to that fact because they rely on outside suppliers. It’s not enough to say, OK, fine, we’re sound. You need to validate through your providers and suppliers that they are compliant. The auto industry is going through this process, as is the securities industry.
“The Street Test” is a massive undertaking which will take place on Wall Street this summer.
Finally, don’t let the weeds grow back. Make sure that the outside contractor who comes in to work on your system when the tax code changes must be made is aware that he’s dealing with a Y2K-compliant system. If someone is coming in, make sure that those changes will not corrupt the Year 2000 compliant system.
April 1998 Small Business Times, Milwaukee

Answer of Kit Vernon, Blue Horse, Milwaukee: Selecting the right agency is no different from successful performance in your company’s other operations. Yet few executives do it often enough to achieve even minimum competence. However, some simple, common-sense approaches will help you do it efficiently.
Identify the specific attributes you seek in priority order. Build the rest of the process around finding the agency which matches up best.
Agencies will claim they’re skilled at a wide range of activities. Some are; none is equally adept at everything. Make sure agencies prove their expertise through recent client work, and provide client references.
Which agency attributes are most important?
Your first reaction will probably be “creative.” But what’s most important varies from company to company. Perhaps you value strong marketing and strategic skills, or specific market experience. For others, media negotiating or media planning may be at the top of the list. Or you might favor integration of a full range of communications activities.
The person with the most agency contact should be charged with culling agencies to a reasonable number, distributing information to them, and facilitating the selection process. The weight of each person’s vote will vary from company to company, but the people who’ll work with the agency on a frequent basis should have an important voice in the decision.
It’s finally time to start talking. Make the first call to your current agency. Tell that agency you’re conducting a review and why. If the current agency will be seriously considered, tell it. If not, thank the owners and tell them you’ll be naming a new agency. Don’t do the firm the “courtesy” of involving it unless it has a real chance. Don’t try to hide the review. Chances are it will find out anyway.
Most companies interview too many agencies. They think saying “We reviewed questionnaire responses from 42 agencies” makes them look thorough and important. In fact, a “cattle call” is an almost certain sign of an amateur who hasn’t done the necessary homework or someone looking to impress management.
Well-managed reviews rarely include more than six to eight agencies. Do your homework and narrow the field before serious conversations. Visit Websites. Ask knowledgeable friends, colleagues, media reps and vendors for their suggestions.
If some names pop up repeatedly, give that firm a closer look. Informal discussions with more agencies is okay, but limit RFPs or questionnaires to serious contenders.
RFPs often take dozens to hundreds of hours to answer. Don’t waste the agency’s time, or yours, unless there’s a fair chance the agency might be selected.
Invite the select few in for an exhaustive interview. Before the meeting, tell them precisely what you expect from them, in qualifications and in the meeting. Make sure your questions really work at finding who meets your priorities.
Your team’s chemistry with the agency is important. Before a good relationship can occur, you must like and trust the agency and want to work with them. Never hire an agency you aren’t excited about, just because they scored highest on a scale. If you don’t like it now, you probably won’t like it any better in a year.
Many clients ask for speculative creative presentations. In most cases, it’s a waste of time. It’s extremely rare that agencies get enough background to produce meaningful work. “Spec work” is scarcely ever produced. But agencies generally feel they have to do it, if asked.
The selection of an agency is a grueling, expensive process, for both agency and client. Don’t subject yourself or a group of agencies to it unless you truly seek a partner for the long-term. If you need only short-term project help, you can find an agency to help you. But the process, and your expectations of agencies, should be much different.
Make a commitment to the agency you hire. The cost, the learning curve and the disruption of your program make this absolutely necessary. Good client/agency relationships are like a good marriage. They require respect and effort from both sides. the right advertising agency?e right advertising agency?
Answer of Todd Robert Murphy, Todd Robert Murphy Communications, Milwaukee: Running a small business is what you do best. Whether you intend to grow your company or keep it small, you’re in business to make a profit. You need customers. You need to advertise.
As a small business owner, you may have no idea how to do that. That’s why you need an ad agency. The advertising industry is changing rapidly. No longer are agencies accessible only to large companies. Smart agencies are positioning themselves to meet the needs of small businesses like yours.
An advertising/public relations agency is, first and foremost, a consultant and advisor for all of your advertising, marketing, promotional and public relations needs. You should use your agency as you would your other professional consultants, such as your attorney or your accountant.
Your ad budget will depend on the type of business you’re in, the size of your company, your competitive situation, the media consumption habits of your potential customers, their buying season and many other factors.
Your agency can help you decide on an appropriate, cost-effective campaign. Advertising is something that , if done right, pays for itself.
A true full-service agency is a one-stop shop, providing strategic planning, marketing plans, creative and production services, media strategy, and placement for all types of print, electronic and other paid advertising, as well as collateral (brochure) design and production, public relations, media relations and public affairs.
A good agency handle both small projects and large campaigns – and treats them with the same respect.
What if an ad rep says you don’t need an advertising agency?
Think about it. A salesperson representing a single media outlet has a vested interest in getting control of as much of your advertising budget as possible. It’s called a sales commission. Advertising agencies make money on media commissions, too, but they have no vested interest in recommending one station over another, or one media over another. The agency’s commission is the same regardless of which media outlets it recommends.
Your business is your business. If dealing with advertising reps is wasting critical time you could be devoting to something else, you need to turn it over. A good agency will save you time and money while reaching more of your target audience.
The key to a good agency is that they can do it faster, better and cheaper than you could do it yourself.