BizTimes Milwaukee | May 29, 2017 by BizTimes Media

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W RI D

REV UP: WANTABLE 10

VIBETECH COULD HELP ASTRONAUTS 25

FIGHTING PINKY FATIGUE 27

– TO – ATTRACT

S R E

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May 29 - Jun 11, 2017 » $3.25

SHIFTS GEARS

R TE IS G RE

Presents:

! AY D TO

Wednesday, July 12, 2017 7:00 AM - 11:30 AM | Potawatomi Hotel & Casino

Transitioning Your Wisdom and Your Wealth Join BizTimes and a distinguished group of family business owners and leaders for a morning of inspiration and hands-on learning to help you embrace the next generation of change in your business. Our speakers and roundtable sessions will spur new thinking and expand on existing ideas around culture, growth, transition, sustainability and legacy. Author and family business expert Tom Deans will again kick-off the program with a keynote address. He will share insights from his best-selling book, “Willing Wisdom: 7 Questions Successful Families Ask.” All attendees will receive a copy of “Willing Wisdom.”

DEANS

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KEN RIESCH

Following the family business presentation, the program continues with four- twenty-five minute roundtable discussions, which include the following topics: • Rewarding Your Key Management: Bonus Plans • Value Determination and Improvement Strategies • Life after Sale: what can you realistically expect after you exchange your business for cash? • Borrowing to Build: Grow Your Business, Build Your Legacy • Family Business Can Be Complicated – Retiring from it Doesn’t Have to Be • Are You Prepared to Live the Retirement and Leave the Legacy You’ve Always Wanted? • Planning for Transition in Your Family Business • Managing Your Workforce – Legally • Secure Your Secrets, Button Up Your Brands, and Patent to Protect Your Profits • The Family Retreat- The Shully Family discusses how getting

away helps them plan better • ESOP, A great succession plan but not for JACK RIESCH every business • Is a family meeting right for me? • Re-Defining Roles and Creating Guiding Principles • The Greatest Untapped Potential of the Family Business - Healthy organizational and family dynamics • Strategic Acquisitions–The Playbook of Successful Acquirers, including the Seller’s Prospective • If you’re failing to plan, then plan to fail • Family Philanthropy – How Families Carry on Their Values through Charitable Giving

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» MAY 29–JUN 11, 2017

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BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 23, Number 5, May 29 – June 11, 2017. BizTimes Milwaukee is published bi-weekly, except two consecutive weeks in December (the second and third weeks of December) by BizTimes Media LLC at 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120, USA. Basic annual subscription rate is $42. Single copy price is $3.25. Back issues are $5 each. Periodicals postage paid at Milwaukee, WI and additional mailing offices. POSTMASTER: Send all UAA to CFS. NON-POSTAL AND MILITARY FACILITIES: Send address corrections to BizTimes Milwaukee, 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120. Entire contents copyright 2017 by BizTimes Media LLC. All rights reserved.

Contents

4 Leading Edge 4 PUBLISHER’S LETTER 5 BEHIND THE SCENES 6 QUOTE/UNQUOTE 7 IN THE NEIGHBORHOOD 8 BIZTRAVELER 9 COFFEE BREAK 10 REV UP 11 BIZ POLL WHO’S ON THE BOARD?

12 News 14 MADE IN MILWAUKEE

16 Real Estate 25 Startups & Innovation 48 Strategies 48 ETHICS Cary Silverstein 49 FAMILY BUSINESS David Borst 50 LEADERSHIP Phil Hauck 51 TIP SHEET 52 A BRIEF CASE

COVER STORY

Harley shifts gears to attract new riders

Applause!

29 Meet the winners of the Bravo! Entrepreneur and I.Q. (Innovation Quotient) Awards, the Woman Executive of the Year and the Lifetime Achievement Award winner.

54 Biz Connections 54 AROUND TOWN 55 PERSONNEL FILE 56 NONPROFIT 58 GLANCE AT YESTERYEAR COMMENTARY 59 5 MINUTES WITH… Nick Turkal, Aurora Health Care

Bringing you GAME CHANGING merchant service solutions. Learn more about North Shore Bank’s business products at NorthShoreBank.com/business or call 800.270.7956. Member FDIC

biztimes.com / 3

Dan Meyer

EVOLVING TO HELP YOU GROW

BizTimes Media 126 N. Jefferson St., Suite 403 Milwaukee w w w. b i z t i m e s . c o m Founded: 1995

WELCOME TO THE NEW BIZTIMES MILWAUKEE! As you can see, we have made many exciting changes. This most recent redesign is one of several that have occurred since I founded BizTimes Media in April 1995. We have continuously adapted our content and delivery to provide the best possible product for our readers. Our goal with this new design is to provide a dynamic reader experience with a fresh, colorful, modern layout; impactful graphics and photos to effectively tell stories; and a convenient magazine-size publication. We’ve added a number of new features and tools to help you grow your business and get to know other business leaders better. For example, the leaders of REV Group, Fiserv Inc. and Actuant Corp. discuss creating an entrepreneurial culture in A Brief Case on page 52, and Jalem Getz

BY THE NUMBERS

discusses his fast-growing startup, Wantable Inc., in Rev Up on page 10. The cover story delves into Milwaukee institution Harley-Davidson Inc.’s plan to position its business for the future. The other exciting part of the magazine redesign is that while there will be a consistency in the look, there will be unique features in each issue. You won’t want to miss an edition! Our reader surveys continue to show you look to our printed pages for this insight. Story subjects frequently want to make sure the story in which they are featured is in print. BizTimes Milwaukee engages its readers by digging deeper into business trends and providing a thorough analysis. What makes a BizTimes story? Does it help you to be a better, more informed current or emerging business leader, owner or corporate citizen? Does it provide relevant news and insights

W I S C ON S I N ranks as the

10th BEST STATE for business in the annual rankings by Chief Executive magazine.

4 / BizTimes Milwaukee MAY 29, 2017

that inspire thought-provoking conversation at your company? Does it ultimately drive economic development by helping you grow your business? Like most of your companies, BizTimes is locally owned, and we are here for you as a champion of local business, big and small. We are here to be the innovative, authentic and experienced voice of the entire metropolitan Milwaukee business community. The magazine redesign is a complement to the redesign of our website, BizTimes.com, which was launched 18 months ago. The website is now more user-friendly and interactive, with more timely and relevant content. Since relaunch, I’m proud to say that our traffic on BizTimes.com has more than doubled. Our online news coverage is second to none in the market. Like your business, BizTimes continues to evolve. We are here to tell your story. Please contact me at dan.meyer@biztimes.com if you have news or insights to share, or feedback about BizTimes Milwaukee or anything at BizTimes Media. Best wishes for continued success in your business.

Dan Meyer Founder & publisher

Rare Steakhouse

adison-based Noble Chef Hospitality opened its first Milwaukee restaurant, Rare Steakhouse, last June on the ground floor of Irgens’ 17-story office tower at 833 E. Michigan St. in downtown Milwaukee. Noble president and CEO Jack Sosnowski wanted to create an experience for guests, and he started with wine. Rare has more than 1,000 types on hand in its cellar. For food-focused guests who want a quick lunch, the normal menu offers many options. And for those who want to linger longer, a hand-carved prime rib cart rolls through the restaurant daily. The kitchen staff ensures each cut of meat is served exactly right, whether diners prefer it rare or well done. And steaks are dry aged in a state-ofthe-art dry-aging room located below the restaurant for several weeks to enhance the taste. n -Corrinne Hess

An 8-ounce filet mignon being seasoned in the Rare kitchen. To season the meat, the Rare culinary team keeps it simple and uses kosher salt and ground black pepper.

To cook the steaks, the Rare team uses a Montague broiler that’s set at 1,800 degrees.

Most of the restaurant’s vegetables come from V. Marchese

2 3

4 Inc. in Milwaukee.

A member of Rare’s culinary staff prepares a meal. Lunch entrees range from $19 for pan-seared Scottish salmon to $62 for a 22-ounce, dry-aged prime bone-in

ribeye. A 28-ounce wetaged double bone-in Frenched filet for $120 is on the menu for dinner. Rare also serves Wagyu or Kobe beef. During dinner, guests can choose three types, including a 34-ounce domestic A3 Tomahawk for $120 or

5 a 5-ounce Japanese A5 Mishima Strip Loin for $135.

Rare’s dry-aging room, located below the restaurant. The meat is dry-aged to perfection for 38 to 40 days. biztimes.com / 5

Leading Edge

BIZTIMESMEDIA – Like us

“ QUOTE

unQUOTE

A J I TA R A J E N D R A

”

C H A I R M A N A N D C H I EF E X ECU T I V E O FFI C ER | A .O. S M I T H CO R P. Ajita Rajendra, chairman and chief executive officer of Milwaukee-based global water heater manufacturing firm A.O. Smith Corp., was the keynote speaker at the 2017 BizTimes M&A Forum. Rajendra described how he and other leaders at A.O. Smith have transformed the company over the past 20 years through divestitures and acquisitions. n

“Aquasana brings the skillset of selling directly to consumers online. We need to be able to merchandise on this (smartphone) screen.”

“A wonderful thing about the water heater market is about 90 percent of it is replacement, and it works – people take one cold shower and then they replace their water heater. And it doesn’t matter what the economic conditions are.”

“We are obsessive about our customers and understanding what they want and responding to them.”

“For our longterm health, we want to be in businesses and markets that are growing.”

“If a customer calls me, I return the call before the sun goes down.”

C R E AT E D TO B E

W I SCO N S I N ’S BA N K F O R B U S I N E SS™ As a company built for this area, we see things differently. We don’t worry about what other companies are doing in other places, because we know firsthand what our area and businesses need to succeed. This is because we’re a proud local business too. It makes all the difference when a bank understands your community and supports your business goals. That’s why we’re honored to call ourselves Wisconsin’s Bank.

6 / BizTimes Milwaukee MAY 29, 2017

4 1 4 - 2 7 3 - 3 5 0 7 | w w w. t o w n b a n k . u s

IN THE NEIGHBORHOOD

KASHOU CARPETS 2169 N. Farwell Ave., Milwaukee NEIGHBORHOOD: East Side FOUNDED: 1910 OWNER: Robert Kashou EMPLOYEES: 10 PRODUCT: Carpets, rugs and flooring

How has the changing nature of brick-and-mortar retail impacted the business? Robert Kashou: “We remain old school. To enter the e-commerce business is quite a challenging task in and of itself. I don’t know that anybody in this town has done well in e-commerce. You have to do it on a large scale. A good portion of the rugs that are ordered online are returned. It’s very difficult for people to judge color and texture and quality online. We have pricing guarantees – you won’t find it cheaper online.”

What sets your business apart from competitors? Robert Kashou: “Some of the other stores just carry traditional oriental rugs. We carry traditional and transitional rugs. Any of the broadloom carpeting can

be made into area rugs in any size you like, or they can be installed wall-to-wall. We have a very large designer clientele that sources their rugs through us. Our inventory does skew to the quality, highend stuff. ” n

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For more information, visit cuw.edu/biztimes2017 biztimes.com / 7

Leading Edge

BIZTIMES – Connect

B I Z T R AV E L E R : SYDNEY

DOUG N YSSE Principal, Arrival Partners LLC

Doug Nysse works on the development of hotels and mixed-use projects. He travels extensively for work and leisure and every few years, he travels back to his homeland of New Zealand with his family. Sydney, Australia is a popular and convenient stopover on the way there or back, so he offers these suggestions.

T R A N S P O R TAT I O N : “Sydney is a short, three-hour flight from New Zealand or 15 hours from the U.S. west coast. Don’t worry, it’s an easy flight – movies, food and sleep. Flights from the U.S. usually arrive early to mid-morning in Sydney. I suggest you book your hotel stay to begin from the night before you arrive so your room is ready when you get there in the morning.”

E XC U R S I O N S: “If you want great views of the city, you can climb Sydney Harbour Bridge. Unfortunately, you can’t take your own camera up there or anything else that you might drop. So for a more convenient and much less expensive trek with similar views (cameras allowed!) walk up the southeast pylon of the bridge.”

ACCO M M O DAT I O N S AND FOOD: “Expect to pay a premium for guestroom views of Sydney Harbour Bridge and the Sydney Opera House. The Four Seasons, Shangri-La and Park Hyatt hotels offer some of the best views. If your work is in the central business district, the Westin, Hilton and others are convenient and just a short walk to Circular Quay and Darling Harbour. Australian foods worth trying include Pavlova, a dessert, and Vegemite, a delicious treat.”

Olga Kashubin/Shutterstock.com

T R AV E L T I P : “Do you want to see koalas, kangaroos and wallabies? One option is Taronga Zoo, which overlooks Sydney Harbour. It’s a scenic ferry ride from Circular Quay. However, if you want to get even closer to the animals, I recommend you head to Featherdale Wildlife Park in the western suburb of Doonside.”

8 / BizTimes Milwaukee MAY 29, 2017

COFFEE BREAK WITH...

Tina Chovanec

President and owner | Image Makers Advertising Inc. 139 E. North St., Waukesha | i m a g e m a ke r s a d v.c o m INDUSTRY: Marketing | EMPLOYEES: 14 •

She wooed them with Lean Cuisine. At 26, Chovanec was hired as the director of marketing at the company that owns the Chancery restaurants. She delivered a prepared freezer meal with her resume to demonstrate that she was passionate about food, but her services were affordable. “I went on an interview … and was surprised that I actually landed the job. I worked my way into their hearts with that Lean Cuisine.”

•

At her first agency, Chovanec named a breakfast that’s still on the menu at George Webb: the Double Webb.

•

Food is a common thread. Chovanec later founded her own marketing firm, Eat Cake Communications, with the tagline: “Have professional marketing and afford it, too.” “If I hadn’t gone into marketing, I would have been a chef. I love to cook.” Her favorite dish: Her mother’s Italian red sauce and meatballs.

•

Communication is everything. “There isn’t anything good, solid clear communication can’t solve, whether it’s a relationships or advertising and marketing.”

•

Mentorship is important to her. “I think sometimes professional women can be very hard on each other and it’s my desire to be the opposite.” Chovanec

advanced quickly to leadership roles, and is thankful for the mentors who boosted her there. “If

you want to be successful, you definitely have to be grateful for every opportunity you’ve been given.” n

You have a business to run. We can help. As the #1 SBA lender in Wisconsin*, the Byline Small Business Capital team specializes in finding ways to improve your cash flow—to help you run your business. Our loans offer longer terms and the credit structure you need to improve your bottom line. Let’s build yours, together. Get started with a local lender today. Call (262) 333-0113.

biztimes.com / 9

Leading Edge

@BIZTIMESMEDIA – Real time news

REV UP

WANTABLE

LEADERSHIP: Jalem Getz, president and CEO A D D R E S S: 112 E. Mineral St. WEBSITE: www.wantable.com W H AT T H E Y D O: Deliver personalized makeup, accessories and apparel F O U N D E D: 2012 N U M B E R O F E M P L OY E E S: 100 N E X T G O A L S: Continuing to improve categories and customer experience, while establishing organization for future growth.

Wantable prepares for its next growth spurt By Arthur Thomas, staff writer

10 / BizTimes Milwaukee MAY 29, 2017

Haircare was going to be Wantable Inc.’s third product category. The research was done and the company started talking to customers and vendors about what they wanted and what the category would look like. But president and chief executive officer Jalem Getz decided to pull the plug on the idea after realizing the company couldn’t deliver on what customers wanted. Wantable’s main focus is on meeting and exceeding customer expectations, Getz says. “For many months afterwards, a lot of people thought that (decision) was a mistake,” Getz said. “It was not a mistake because we launched our largest category, which is women’s fitness, instead.” Milwaukee-based Wantable is one of hundreds of entrants to the subscription apparel market in recent years. Customers pay a monthly fee and stylists send five to seven handpicked items to try on. The customer sends back the items she doesn’t like and pays for what she keeps. The company has been among Milwaukee’s fastest-growing startups, repeatedly outgrowing its available space, hiring 100 people and raising more than $4 million in investments. Getz, who founded the company and was also the founder of New Berlin-based Buyseasons Inc., doesn’t reveal revenue figures, but said the company has been doubling its revenues each year, posted

its first profit in 2016 and has hundreds, if not thousands, of customers in most states. The company has had 18 consecutive quarters of growth, according to a news release. Wantable’s focus has turned from, “Where’s our meal going to come from tomorrow?” to setting itself up for the next chapter, Getz said. He’s developing a stronger management structure and narrowing roles and responsibilities. The company hired its first human resources director and Getz also is spending a large portion of his time, around 20 percent, focused on recruiting top talent. “We are an apparel company that is extremely mindful of the importance of technology not only in our model, because we pick products for customers, but also just in generally doing business,” Getz said, noting the technology and purchasing staff are about the same size. Adjusting to the market while keeping the customer front of mind will help Wantable survive a potential shakeout of an industry that has seen an influx of new competitors in recent years, he said. “You’re going to see a lot of companies fail this year,” Getz said. “We’re not out of the woods, but we’re certainly much closer to being out of the woods than a lot of the competitors, because we never entered this space with the starry-eyed notion of getting rich quick; that was never the plan.” n

Whoâ&#x20AC;&#x2122;s on the Board?

BIZ POLL

WILL

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MANPOWERGROUP

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Jonas Prising, chairman and chief executive officer, ManpowerGroup Gina Boswell, general manager, Unilever U.K. & Ireland Cari Dominguez, president, Dominguez & Associates William Downe, CEO, BMO Financial Group John Ferraro, former global chief operating officer, Ernst & Young Patricia A. Hemingway Hall, former CEO and president, Health Care Services Corp. Julie Howard, chairman and

CEO, Navigant Consulting Inc. Robert Mendoza, senior managing director, Atlas Advisors LLC Ulice Payne, Jr., president, Addison-Clifton LLC Paul Read, former president and COO, Ingram Micro Inc. Libby Sartain, independent HR advisor and consultant John R. Walter, former non-executive chairman, InnerWorkings Inc. Edward Zore, former chairman and CEO, Northwestern Mutual Life Insurance Co.

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Real Estate

@BIZTIMESMEDIA – Real time news

Phase one of the State Street Station apartments will open in June.

State Street Station adds to Tosa’s apartment boom

IN LATE 2009, Brookfield-based HSI Properties LLC began planning The Enclave apartment development in Wauwatosa. The Great Recession was winding down and HSI was one of the few developers beginning to experiment with multi-family rental properties. Wauwatosa had not had an apartment complex built since The Reserve opened on State Street in 2001. “No lender was willing to provide financing for an apartment on spec,” said Ryan Schultz, co-founder of HSI Properties. “We put that deal together

because we felt confident in the lack of new product that was available in and around the Wauwatosa area.” The $25 million gamble worked and the 192-unit Enclave, which is located at North 62nd and West State streets, quickly was leased, largely by employees of the nearby Milwaukee Regional Medical Center. The success prompted HSI to begin scouting for another property in Wauwatosa. In June, residents will begin moving into phase one of State Street Station, HSI’s four-story mixed-use development in the

Wauwatosa Village area, at 7400 W. State St. The project includes 140 market-rate apartments and about 20,000 square feet of retail. “What the Village has is a unique charm; a built-in amenity that is tough to put a price tag on,” Schultz said. “We are huge believers in Wauwatosa, and even bigger believers in The Village. It’s a suburb, but so close and convenient to downtown that it is a great alternative if you are not into downtown living.” Other apartment developers also have realized the potential Wauwatosa brings, with its proximity to downtown Milwaukee and its central location that is accessible to many of Milwaukee’s largest employers, including Kohl’s Corp., MillerCoors LLC and Harley-Davidson Inc.–not to mention the Milwaukee Regional Medical Center, which employs 15,000 people, according to VISIT Wauwatosa. Since the recession ended, the city has made a concerted effort to attract more multi-family developments, like State Street Station, to Wauwatosa. In the past eight years, more than 1,500 new apartment units either have opened or been approved, and city officials would like to see more. Nearly every project, with the exception of the 24-unit Pasadena Apartments at 803 E. State St. and Mandel Group Inc.’s upcoming project at Milwaukee County Research Park, has received city funds through tax increment financing or another mechanism. Paulette Enders, Wauwatosa’s director of development, said

FEATURED DEAL: C R E E L I G H T I N G ADDRESS: 8505 100th St., Pleasant Prairie LESSEE: Cree Inc. BROKER: CenterPoint Properties Corp. and CBRE Inc CLOSING DATE: Early May

16 / BizTimes Milwaukee MAY 29, 2017

LED LIGHTING MANUFACTURER CREE INC. is relocating its distribution facility from Yorkville in Racine County to Pleasant Prairie. The company signed a seven-year lease at 8505 100th St. and will occupy 147,877 square feet of the 256,240-square-foot warehouse, leaving room for future growth, said Karl Wiedenman of CBRE, who represented Cree in the transaction. The new location will be used as a distribution center for finished goods, replacing its 80,000-square-foot facility in Yorkville. About 35 people will work at the location. The building was rehabbed in 2010 and features 239 parking spaces. “We are excited to add Cree to our existing list of tenants and look forward to a long partnership together for years to come,” said Jim Shields, vice president and regional manager at CenterPoint Properties.

WAUWATOSA APARTMENTS BUILT OR PLANNED SINCE 2009 THE ENCLAVE, 1200 N. 62nd St.; 192 units; HSI Properties LLC* STATE STREET STATION, 7400 W. State St.; 140 units, 20,000 square feet of retail; HSI Properties PASADENA APARTMENTS, 803-811 E. State St.; 24 units; Cardinal Capital Management Inc.* THE REEF, 1215 N. 62nd St.; 180 units; Wangard Partners Inc.* THE 2100, 2100 N. Mayfair Road; 99 units; John Czarnecki THE RESERVE at Mayfair, 11011 W. North Ave.; 236 units; Atlantic Realty Partners LLC and Campbell Capital Group LLC* HARMONEE SQUARE, 1463 Underwood Ave.; 30 units, 7,500 square feet of commercial; Luther Group and Horizon Development MILWAUKEE COUNTY RESEARCH PARK APARTMENTS; 100 units; Mandel Group Inc. ECHELON APARTMENTS AT INNOVATION CAMPUS, 9810 Echelon Lane; 188 Units; Mandel Group* SYNERGY AT THE DISTRICT, 11500 W. Burleigh St.; 268 Units; Fiduciary Real Estate Development Inc. THE ELMS AT RIVERS BEND SENIOR APARTMENTS, 1535 Rivers Bend; 100 units; Horizon Development Group Inc. TOTAL: 1,557 * Denotes completed projects

the money typically pays for the project’s parking or environmental clean-up to allow for more density. “We run them through a rigorous analysis process and feel comfortable when it comes out that we are not giving them anything more than what they absolutely need,” Enders said. And while it may seem as though Wauwatosa has exploded with apartments in recent years, there is a need for more, in part to free up some of the single-family housing needs, Enders said. “We are a major employment center, so not only do individuals working at the Regional Medical Center and Research Park want

to live here, but there are also empty nesters who are looking for a change,” Enders said. “That frees up our single-family homes for young people starting families who want to live in Wauwatosa.” Enders said a recent housing study showed a need for affordable housing, workforce housing, condominiums and accessible housing. The city has had discussions with developers about this need and the developers are researching it, but so far, no plans have been submitted, Enders said. Meanwhile, market-rate apartment projects are continuing to move forward. Harmonee Square in The Village; Synergy at The District, at the Mayfair Collection; and Mandel Group’s project at Milwaukee County Research Park all are expected to break ground this year. This will be Milwaukee-based Mandel’s second apartment project on the west side of Wauwatosa. It is expected to be similar to the company’s 188- unit Echelon Apartments on the nearby Innovation Campus, which took about 14 months to fully lease. “Our Wauwatosa strategy is centered around the Regional Medical Center and Research Park because it is the largest employment base outside of downtown Milwaukee,” said Phillip Aiello, senior vice president of development for Mandel. “Wauwatosa has various pockets, including The Village, East Tosa, the Mayfair area, and they all have a real vitality which is attractive, and people have really discovered what a great place Wauwatosa is to live.” n

CGS PREMIER TO DOUBLE SIZE WITH NEW MUSKEGO LOCATION New Berlin-based manufacturer CGS Premier Inc. is planning to relocate to a new facility in Muskego that would be twice the size of its current facility. CGS Premier, a maker of mobile exhibits and displays, is working with HSI Properties LLC of Brookfield on a 65,000-square-foot building at the east end of Commerce Center Parkway, east of Moorland Road in the Muskego Business Park. The building would be owned by an affiliate of HSI Properties. The company is hoping to break ground in early June, said Greg Peterson, president of CGS. CGS currently leases about 36,000 square feet at 5786 S. Westridge Drive in New Berlin. DEVELOPER: HSI Properties LLC of Brookfield SIZE: 65,000 square feet GROUNDBREAKING: June 2017

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CORRINNE HESS Reporter

P / 414-336-7116 E / corri.hess@biztimes.com T / @CorriHess

1-888-571-7878 www.warehouse-lighting.com info@warehouse-lighting.com 2805 South 160th Street New Berlin, WI 53151

biztimes.com / 17

o t s r a e g s t f i h s y e l s Har r e d i r w e n t c a r t t a r Th By Arthu

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18 / BizTimes Milwaukee MAY 29, 2017

ERIC SCHROEDER PHOTOGRAPHY

Matt Levatich, CEO of Harley Davidson Inc.

Moakley’s guess is that group rides will become more attractive to younger riders as they age. The bigger question of how Harley-Davidson’s brand will translate to future generations is certainly an open one. The baby-boom generation helped fuel year after year of double-digit growth in Harley’s sales and motorcycle shipments throughout the ’90s and early 2000s. The youngest of that generation will turn 53 this year and the oldest will reach 71, an age at which heading out on the open road, or at least investing in a new motorcycle, may not be as appealing as it once was. “As boomers age, Harley can either add new riders or see its brand wear thin, like your goto biker chaps,” a recent Robert W. Baird & Co. Inc. research report noted. Among the many challenges Harley faces is meeting the needs and wants of its current customers while also expanding its offering into new areas that help attract younger generations. It’s certainly a balancing act the company is aware of, disclosing it as a risk factor in its securities filings. Harley also unveiled a new 10-year strategy earlier this year, with the goal of “building the next generation of riders, globally.” The plan calls for creating 2 million new riders in

the United States, growing the international portion of the business to 50 percent of the total, launching 100 new “high-impact” models, providing return on invested capital in the top 25 percent of the S&P 500 and doing it all without increasing the company’s environmental impact. The plan is the result of a lot of work Harley has done in recent years to improve its manufacturing efficiency and its product development, but it is also a response to increasing challenges from a variety of corners and a shift toward focusing on driving demand. Levatich took over as chief executive officer in May 2015, and the past two years have presented him and Harley with outside challenges that have required tough decisions. The strengthening of the U.S. dollar in late 2014 made it more difficult for Harley to sell motorcycles overseas profitably and made it easier for non-U.S. players to compete on Harley’s home turf. Polaris Industries Inc. also has been able to grow sales in its motorcycle business from almost $220 million in 2013, when the Indian Motorcycle brand was relaunched, to $708.5 million last year. The Minnesota-based company will be able to invest more in Indian now, after announcing the wind down of Victory Motorcycles earlier this year. A refocused domestic competitor combined with relatively more favorable conditions for international competitors is one thing, but Levatich said many of Harley’s competitors came out of the economic downturn “with their feet under them on new biztimes.com / 19

product development,” making an already challenging situation more difficult. “I like what we were set up to do to face that. I wish we had seen it, acted and amended sooner, but we built some great fundamental capabilities coming out of the downturn,” Levatich said. “We had worked on core strengths and we were prepared in a way that we might not have otherwise been prepared to do what we did next, which was to pivot our efforts as a company toward driving demand.” The pivot toward driving demand started in late 2015, with the announcement of an additional

inventory than we wanted to have at a critical time in the year,” Levatich said. Harley was forced to hold back on shipments at the beginning of 2017 and instead help dealers sell through their 2016 model year motorcycles. “It was a difficult couple of years, but in a way, a really fruitful couple of years, because it sharpened our capabilities and sharpened our focus about what we have to do in the next decade,” Levatich said. The experience shows how “business in gener-

“I think it’s an issue for us as a people, as a society. How do we get good at living in a dynamic world? How does it not create anxiety, but excitement? These are issues many companies will soon be dealing with in a major way.” — Matt Levatich

$70 million in spending on product development and consumer-facing marketing. Harley started 2016 with a new emphasis on driving demand for its motorcycles and was working on the development of its new Milwaukee Eight engine. Then, in the middle of the second quarter, the industry took a downturn. Weakness in oil-dependent regions, combined with uncertainty from the presidential election, likely contributed. The result was elevated levels of model year 2016 motorcycles at dealerships just as the company shipped 2017 models with a brand new, upgraded engine. “We in no way expected or predicted the market to sort of shut off and we were left with more 20 / BizTimes Milwaukee MAY 29, 2017

al has to be quicker on its feet than it’s ever had to be,” Levatich said. “We just don’t live in a world anymore that is predictable, as predictable as most people in business are accustomed,” he said, noting the constant change plays into every decision, from where to deploy capital to what kind of talent to hire. “I think it’s an issue for us as a people, as a society,” Levatich said. “How do we get good at living in a dynamic world? How does it not create anxiety, but excitement? These are issues many companies will soon be dealing with in a major way.” Levatich isn’t one to back away from a challenge. When he talks about his approach to busi-

ness, it is almost as if he’s describing the feeling of riding a Harley. “My objective has always been learning, growth, exposure, challenge,” he said. “I like the feeling of being as close to the edge as possible and being really challenged in that, and I find that the learning is most fulfilling there.” Levatich grew up riding dirt bikes in central New York and while he loved to ride, he never aspired to work at Harley-Davidson. His career passion was more about manufacturing, and Levatich realized he had more to learn as he became involved in the business of the industry. That led him to the business school at Northwestern University and eventually, an interview with Harley. The opportunity with Harley combined his love of riding with his interest in design and fascination with brands. The company he joined in 1994 looked a lot different than the one he leads today. At that time, Harley had a transportation vehicles segment that sold Holiday Rambler RVs, Utilimaster commercial vehicles and even some office furniture. The company shipped 95,811 motorcycles and was in the midst of a three-year effort to produce 100,000 motorcycles in a single year by 1996. Harley shipped 262,221 motorcycles last year, down about 3 percent from two years ago and 25 percent from nearly 350,000 when shipments peaked in 2006. It is probably a good thing for Harley that Levatich is so willing to embrace a challenge. From growing new riders and building the brand internationally, to developing new models and confronting increased competition, Harley is

Harley riders prepare taking on an ambitious set of tasks in the coming year. “Competition, to me, is exciting; it’s welcome. I’m loving what I’m seeing from the organization in our response,” Levatich said. “I absolutely, firmly (believe) our best years are in front of us.” If Levatich is right, the coming years could be quite profitable for Harley and its shareholders, considering the company is starting from a much different place than when its growth took off in the ’90s.

GROWING RIDERS Sam Petre checks many of the boxes Harley talks about when it comes to bringing new people to its brand. The self-described motorcycle addict is 35 years old and lives in Wauwatosa. He last owned a motorcycle in 2009 and was saving for another one until children came along and those resources were pushed in another direction. Even without a motorcycle of his own, Petre, director of Milwaukee-based gener8tor’s gBETA Beloit, has continued to follow the motorcycle industry. If he were to buy a bike now, it probably wouldn’t be a Harley. “The ones that are most intriguing to me are just a little bit more raw,” Petre said. Of course, he comes from a different part of the motorcycle world, having been a sport bike rider most of his life. Petre acknowledged having a very negative perception of Harley when he lived in other parts of the country. “I just knew that it was a bunch of old, fat white guys who didn’t know how to turn,” he said.

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A job as a staff designer at former Harley subsidiary Buell Motorcycle Co. brought him to Wisconsin, where a combination of rolling country roads and the HarleyDavidson Museum helped him gain an appreciation for the brand. “It wasn’t until I moved to Wisconsin that I understood the allure of Harley,” Petre said. He pointed out one of the biggest challenges for the motorcycle industry in the U.S. is there is no real incentive to buy one. While much of the rest of the world uses smaller motorcycles for transportation, the U.S. is much more car-centric. Some people may grow up riding dirt bikes or mini bikes, but many have no exposure to the sport. “There’s no clear funnel for them from an early customer attraction standpoint,” Petre said. The 2 million new riders Harley hopes to attract over the next 10 years isn’t a goal pulled out of thin air. It’s the product of $6 million invested in consumer research last year, along with other insights the company has developed. Harley estimates there are currently 2.4 million riders who own a competitor’s motorcycle but have interest in buying a Harley in the next three years. Another group of 15 million, classified as motorcycle intenders, are planning to purchase a motorcycle in the next three years and have an interest in Harley. Some of those in that group are part of the 7.8 million the company estimates have a motorcycle license but no bike. The reality is around 3 percent of U.S. adults ride motorcycles. Levatich isn’t looking to grow

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that figure to 10 percent, he just wants to be able to walk into a gathering and have three out of 100 people raise their hands as motorcycle riders. “I don’t think it is cool if 10 hands of 100 go up,” he said. “This is something for people that actually are making a statement about who they are and how they want to live and be.” But even if Levatich isn’t looking to more than triple the sport of motorcycling in the U.S., Harley’s success does depend on shifting the company’s focus toward building riders. “We need riders. That’s sort of a simple idea; I’m not saying it’s a simple solution, but the fact of the matter is we need to shift our attention as a company, in particular in the United States, from ‘we build motorcycles’ to ‘we build riders,’” Levatich said. “When we build riders, motorcycles will sell. If you just build motorcycles, you may not sell them.” Focusing on demand means all kinds of things. From increased advertising in targeted markets to sponsoring flat track racing at the X Games, Harley is increasing its consumer-facing marketing. Advertising expenses have been up double digits each of the past four years, from $81 million in 2012 to $137 million last year. The company is also refining its approach to its Rider Academy, seeking to increase the number of people who buy a motorcycle after completing the class. Chief financial officer John Olin acknowledged on a recent earnings call that the company biztimes.com / 21

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would be making changes after offering the program free to military, police, fire and first responders last year. “One of the learnings is when you offer things free, some people don’t – they go to have something to do,” Olin said. Moakley said about 16 or 18 percent of the people who take the class end up buying a motorcycle. His internal goal is to reach 20 percent and eventually, 25 percent. He plans on investing about $1 million to build a training range at his dealership.

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counted for 71 percent of the 563,000 Harleys that changed owners last year. Prices for used motorcycles have softened over the past year, and Baird’s research reports note more used motorcycles will hit the market as baby boomers exit their riding years, potentially offering a more affordable avenue for new riders. “You could make the statement that used Harleys are the biggest competitor to Harley-Davidson’s new sales in the United States,” Levatich said “I’d rather think it’s the biggest asset we have to

“This is something for people that actually are making a statement about who they are and how they want to live and be.”

— Matt Levatich

Riding in a parking lot is one thing, but going out on the road is another, so Harley executives have talked about adding some additional programming to bridge the gap. The challenge is also figuring out how to help people go from learning to ride to having the confidence to buy a motorcycle of their own. The least expensive model, the Street 500, starts at $6,849, but some used motorcycles can be had for less than that. Sales of used motorcycles ac22 / BizTimes Milwaukee MAY 29, 2017

bring new riders into the sport.” The company also hopes to grow new riders by strengthening its U.S. dealer network. That will include facility upgrades, an enhanced retail experience and sharing of best practices. Many dealers regularly hold events at their dealerships that can help draw new people to the sport. “I think the events are sort of demystifying Harley-Davidson, because at the core, they’re all good people and I think people that don’t ride or

aren’t familiar with the lifestyle, they can get a flavor for it at those events,” Moakley said. He added dealerships increasingly need to have people on their sales floor who are personable, knowledgeable and approachable. “I think that’s something the dealerships didn’t do well, the approachable part, in the distant past,” Moakley said. “When there was a waitlist for a bike, it didn’t really challenge your skills as a salesperson; you sold every bike that came through the door. We still sell every bike that comes through the door, it’s just (now) you have to be able to connect with the customer.” Harley is also looking to its current customers to bring new people into the sport, using terms like “activate the base” or “enlist the army.” Levatich said that means encouraging new riders to try the sport and getting existing riders out on the road. “When I’m riding on my bike or I’m at a gas station on my bike, someone’s saying, ‘Hey, look at that cool bike; I want to ride.’ If I’m there in my pickup truck, the person isn’t having that thought,” he said. When Levatich’s sons were growing up, he didn’t want to push motorcycling on them, opting to allow them to pursue their own interests instead. So even though there were always bikes around, neither gravitated to the sport. It wasn’t until

his older son went off to college and a roommate from Japan found out his dad worked at Harley that the interest sparked. His son returned home from freshman year and told his dad he wanted to learn to ride. Levatich’s other son followed a similar pattern, and now both seek out their dad’s advice in gaining experience. They’re able to ride in front of Levatich and he can teach them through helmet-to-helmet communications. He called it an “awesome discovery” that his sons wanted his input and responded to his teaching. “It is very gratifying to a passionate motorcyclist when someone else picks up the baton and wants to run with it and wants your help,” he said. “This is a father-son example, but it plays out all the time.”

NEW MODELS Harley has already increased its investment in research and development by 25 percent in the past two years. At $172.3 million, 2016 R&D spending was at its highest level since 2007. The company plans to continue to invest as it develops 100 new models in the coming years. When Levatich talks about Harley’s product development plans, he’s quick to downplay the importance of the specific number. Instead, he puts the emphasis on the need for “high-impact” new models. “We aim to reinvent product segments where we’re strong and offer alternatives in adjacent segments,” Levatich said at the company’s annual meeting. “Our new bikes will be designed to bridge the desires of riders of different ages, genders and cultures.” He said not every new model will appeal to every rider. Harley’s targets include its core domestic customers, outreach customers in the U.S. and international riders in emerging and developed markets. Each new model is intended for at least two of those targets. For example, the Street platform is primarily targeted toward growth opportunities in Asia, but it also helps with outreach in the U.S. The company also plans to broaden the customer needs its motorcycles fulfill. Some riders may be looking for laid-back cruising; others want tucked-in speed and adrenaline. Some might be riding on city streets; others want to head out on long journeys. “Not every one that we do will appeal to everybody, and that’s actually important, not just to acknowledge that, but to actually embrace that,” Levatich said. “We’re not going to create a motorcycle that everybody is going to love.” Moakley said the company is increasingly realizing everyone is a potential customer and that will be good in the long-run. “I think there used to be, I don’t want to say a fear, but at least a hesitation, to do things that they thought might have alienated their core customers. I think they’ve gotten rid of that,” he said. Levatich said Livewire, Harley’s electric motorcycle that has yet to be introduced as a production model, will likely appeal to both passionate riders and people who have never been on a motorcycle.

biztimes.com / 23

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“As an investment in a product, it’s not singularly about people that have never ridden before, nor is it singularly about people that have always ridden, but it probably is more about getting new people on two wheels,” he said. While Harley executives have spoken a lot in recent months about product development plans, those statements haven’t gone into great detail on specific segments or projects. Livewire,

GROWING INTERNATIONAL MARKETS Harley’s latest investor presentation features a slide with a pie chart showing the total number of motorcycles in the world. A small black sliver represents the roughly 8 million on the road in the U.S. A slightly larger slice represents the developed markets of Europe, Canada, Japan and Australia. Finally, a large orange piece covering more than

“We aim to reinvent product segments where we’re strong and offer alternatives in adjacent segments. Our new bikes will be designed to bridge the desires of riders of different ages, genders and cultures.”

– Matt Levatich

which was first introduced as a concept in 2014, is no different. “All I can say is the electric bike is a project that is active on that lifecycle plan,” Levatich said at the annual meeting. “We don’t typically commit to the timing of products because there’s a lot of work in development that can influence the timing. It is an active project in our portfolio and we expect it to come to market.” Levatich said Livewire is the most exciting automotive-related product he’s ever experienced and is easier to ride than a bicycle. 24 / BizTimes Milwaukee MAY 29, 2017

three-quarters of the chart represents motorcycles used in China, India and southeast Asia. Levatich said no one is spending enough time thinking about that large orange portion. He pointed to Vietnam, which he said is the fourth largest motorcycle market in the world, with 42 million motorcycles on the road. Granted, most of those motorcycles are small displacement and oriented toward transportation, but Levatich pointed out a few decades ago, those motorcycles were bicycles. “This is the arch of a developing economy,”

he said. “As that economy continues to grow over time, the market for larger, more leisure-oriented motorcycles, more sport-oriented motorcycling, will continue to grow. Will it be 42 million? No, it won’t. But the point is that it is tremendous growth potential for Harley-Davidson.” There are just a few Harley dealerships in Vietnam now. The company plans to add 150 to 200 international dealerships between 2016 and 2020. Forty new dealers were added last year, including in Vietnam, the Philippines, Belgium, Italy, Norway, Croatia and New Zealand, and the company is on pace to add another 50 this year. While international markets hold great potential, Levatich said some of those with the greatest potential also have high duties or tariffs on motorcycles. “What that means is we can’t be profitable being priced competitively. So to be profitable in someplace like Indonesia, we have to be priced way above the alternatives for our customer. That limits our growth,” he said. International trade challenges were a main topic of the company’s recent meeting with President Donald Trump, and Harley has had to deal with barriers to international markets before. Despite some legal and cultural difference, Levatich said Harley’s brand transfers well to international markets. “The ideals, which we put under the umbrella of personal freedom, the core ideals of freedom, strength, independence (and) self-expression, are universal human qualities and desires,” Levatich said. “They cross borders, cultures, generations through time; this is what humans yearn toward, right? Those values are embedded in the HarleyDavidson brand.” n

Special Report STARTUPS & INNOVATION

Ovation Chai Point resident Edith Silverstein uses VibeTech One with Alvin Arzaga.

VibeTech could help astronauts Sheboygan startup has found physical therapy success By Molly Dill, staff writer

LAST MONTH, astronaut Col. Jeff Williams came to Spaceport Sheboygan to test a device that could help prevent muscle atrophy and keep bones strong in space. The device, VibeTech One, is made by Sheboygan startup VibeTech Inc. It works by exercising a seated user’s leg muscles to exhaustion in a process called strength training vibration therapy. “He loved it,” said Jeff Leismer, founder and chief executive officer of VibeTech, about Williams’ experience with the device. “One of the biggest problems astronauts have is the ability to even get a workout for their fast twitch muscle fibers, which are the fibers used for strength and posture. “It’s a new space that we’re in. We really try to capture the whole concept of providing effort-free treatments to provide the exercise response to the body.” VibeTech is actually a NASA spinoff company, developed using NASA data, but it still has to go through the usual channels to convince the agency to use its product. VibeTech is in the sixth of seven stages to demonstrate its countermeasure to disuse atrophy. Next up is the simulated microgravity component. “If you can design something for astronauts and keep them strong in space, that’s wonderful,” Leismer said. “I look at that as a great test bed for developing things here on Earth.”

Founded in 2010, VibeTech now has four issued and nine pending patents on its proprietary technology. The units can be used in space, but also in several applications closer to Earth, such as physical therapy and the prevention of muscle atrophy and osteoporosis. The VibeTech One unit already has found success in impaired physical mobility therapy applications in senior living communities, Leismer said. The company produced five units in its first production run, two of which are being used for research. Among the company’s direct users are Ovation Communities in Milwaukee and Rocky Knoll Health Care Center in Plymouth. Ovation has two first generation VibeTech units, and they’re in use daily, said Badieh Widmer, director of rehab at the organization. “We use them on probably 75 percent of our rehab folks and probably 60 percent on our outpatient,” Widmer said. “We use it for orthopedic cases, for pain management, and then we also use it on our Alzheimer’s/dementia patients for calming.” Widmer said using the VibeTech creates a noticeable, reportable change in patients. “I think you don’t realize it at the time; it’s afterwards that the benefits are felt,” she said. VibeTech is about to roll out its second-generation VibeTech One unit, which Leismer described as a vibrating robotic leg press machine biztimes.com / 25

with three times the resistance and more range of motion than the first generation. “The last system gave you 10 inches of travel back and forth. The new one gives you 15 inches of travel,” Leismer said. The second generation of VibeTech One is web-enabled, opening up new avenues. A key feature is the ability to do patient assessments right on the machine, versus through a subjective manual muscle test admitted by the health care professional. And patient diagnostic codes, billing codes and medical history can be included in the analysis, so the cost of care is predictable – a big plus in today’s health care market. With a web-enabled unit, VibeTech can do remote trainings for users, and the video screen can show a sort of virtual reality experience for the patient. VibeTech has just two full-time employees and works with a handful of key vendors to engineer and manufacture its products. Those who have tested the second generation VibeTech One have demonstrated 10 to 40 percent improved range of motion, Leismer said. “Anybody who gets less physical activity now than they did before, their bodies are in a state of disuse,” Leismer said. “Even sitting in front of a computer typing away, we’re not getting the physical activity we need.”

VibeTech has just switched to a rental model, in which health care providers pay-per-treatment for VibeTech sessions. VibeTech installs the unit at a facility and provides ongoing maintenance. The company using the unit pays VibeTech based on usage. “Basically, it comes down to it’s a revenue sharing model that allows for a facility to start making money right from the get-go,” he said. “It allows for them not to have that large barrier to entry that they would have to absorb if they had a large purchase price. There are hefty margins built in for the facilities in order for them to start generating a good profit right away.” The startup has raised a total of $2 million from investors over the course of several years. It has not yet reached break-even, but hopes to generate more revenue from the rental model. “We’re going to raise a significant round of funding here that will allow us to build out fairly large quantities of products and start our pay-per-

The Spaceport Sheboygan team with astronaut Jeff Williams.

treatment model,” he said. “Facilities will be able to make money right from day one. The only problem is these machines are expensive to create.” Sheboygan’s Alaark Tooling and Automation Inc. manufactures the VibeTech machines. The software is created by QuickSilver Controls Inc. in San Dimas, California. “This is for anybody that’s moving less now than they used to,” Leismer said. “It could be due to aging, disability, general disuse. “Exercise is the best medicine for everything. Now that we’ve figured out how to deliver exercise to everyone, let’s give access to everyone.” n

EXPERIENCE WITH PERSPECTIVE At First Business, we boast our years of experience all the time. But it isn’t just bragging. Experience is what allows us to do everything from navigating clients toward success, to helping local universities produce business-savvy graduates ready to shape the future of our community. And no matter what issues your business faces today, you can be confident knowing you have a partner who’s faced it down a time, or two, (or a hundred), before. DAVE VETTA

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Special Report STARTUPS & INNOVATION

Fighting pinky fatigue

The GripTab adheres to the back of a smartphone and can be extended to assist with holding larger models.

Smartphone accessory inventors embark on product development By Molly Dill, staff writer

IF YOU USE A SMARTPHONE, you may be familiar with “pinky fatigue,” since the pinky holds the heaviest weight of the device at the bottom. The latest generation of smartphones has screen sizes approaching six inches, creeping ever closer to tablet dimensions. While this makes for better video-watching, it can also make the devices tough to hold with one hand. Danin Jensen wanted to give pinkies a break, so he came up with GripTab. It’s a curved resting place that takes pressure off the littlest finger. The plastic device adheres to the back of a phone with 3M semi-permanent tape, and the user can press a button to pop a tab out at the bottom as needed. “Ever since I had upgraded to an iPhone 6, all of a sudden it was too big to use with just one hand,” Jensen said. “It’s when I first started thinking there was a problem with how I was holding my phone, and where I was placing my pinky on the bottom of it was really uncomfortable.” That was in May 2015. He worked up a prototype with the help of Muskego’s LBJ Product Solutions LLC, and by December, Jensen had a provisional patent on GripTab. “After I came up with it, then I started going online just to make sure that nobody else had the exact same thing,” he said. PopSockets and iRing have slightly different approaches to the problem, but there’s nothing identical to GripTab. Their existence and success, though, show Jensen there’s a market for the GripTab. “For me, it’s more comfortable to hold, it’s more professional looking and it’s definitely more durable,” Jensen said of his product. “I’ve had interest from Otterbox,” he said. “They have a modular case called a Universe Case where you can attach different attachments to the back of the phone and they said

they would be interested in selling the product for use with their case.” But first, GripTab must make its first production run. While he has only created prototypes so far, Jensen is determined to manufacture the product as close to home as possible. He’s finalizing his business plan and hopes to raise $200,000 from investors to produce the first batch of the product. When he’s not inventing smartphone accessories, Jensen is a road construction foreman for Menomonee Falls-based Pavement Maintenance Inc.

I had a yearning to develop some products that I thought would be useful in the marketplace. It’s really just driven by a passion and love of developing products. – Chad Buchanan BiKASE owner

“I’m always modifying construction equipment, making it better, more useful for us, but never thought I would be filing a patent,” Jensen said. “I can’t use my phone without this

thing on here now, so I’m going to do everything I can to help other people have the same benefit.” Mequon startup BiKASE also aims to make users’ lives easier with its smartphone accessories. The company just completed its third successful Kickstarter campaign, raising about $7,500 through the crowdfunding site for its Uni Car Mount, a universal magnetic smartphone mount that clips into the air vent in any car. Its previous Kickstarter effort was even more successful; BiKASE raised more than $27,000 from nearly 600 funders last year for its Super Band, a polycarbonate and rubber band which holds small items in place on a bicycle. “Our goal really with the Kickstarter was to use the Kickstarter platform as advertising,” said Kevin Troyanek, sales manager for BiKASE. “This is a product that people want and there’s a demand for it. The Kickstarter paid for the first production run.” And it got the word out. BiKASE sold 6,000 more Super Bands from July 1 to the end of 2016. Founded in 2011 and with just three employees, BiKASE has created about 70 products. Troyanek and owner Chad Buchanan design and develop the products, and then they are manufactured in Taiwan. BiKASE’s first product was called the Handy Andy. It’s a phone case with a clear front that straps to the center of the handlebars and biztimes.com / 27

allows a bicyclist to see who is calling. “I’ve done a lot of product development for other companies,” said Buchanan, who has a day job developing products for manufacturers. “In 2010, I was riding my bike and every time someone would call, I would have my phone in the back of my seat pouch. By the time I pulled over, the call went to voicemail or it was a sales call or some kind of call I didn’t want to take. Having a family, you never know (when) someone needs something.” The Handy Andy took off when customers found it could be useful for playing Pokemon Go or other mobile games on a bike. But BiKASE didn’t have such an easy go of it at first. “At the time, I was only thinking about one product,” Buchanan said. “There was really no product out there like it that I knew of. Even after I got my first thousand made, a lot of bike shops around the country didn’t think it was a good idea.” BiKASE products, most of which are bike accessories, are now sold at bike stores nationwide. Among the first stores to sell them were Extreme Ski and Bike in Thiensville and Wheel & Sprocket, which has four area stores. The Uni Car Mount is BiKASE’s first foray into the automotive smartphone accessory market.

“With the car mount, we basically looked at the car mounts in the marketplace and thought, ‘Gosh, we’ve come up with a better system that fits into the car vent,” Troyanek said. “Our bracket basically fit into a vent without pulling out as you took your phone off the car mount.” “It’s got a patent pending way in which it attaches to the car vent,” Buchanan said. While the smartphone accessory market is competitive, BiKASE sets itself apart by offering an affordable product and emphasizing customer service, Troyanek said. “They’re not super high-end; they’re not low-end. We think they’re economical. And they’re usable,” Troyanek said. BiKASE is now pulling in about $1 million in

BiKASE got its start with the Handy Andy, a clearfront phone case that mounts to a bike’s handlebars.

revenue. So far in 2017, its revenue is up 40 percent over last year. “Most of the ideas are when I feel like there’s a need in the marketplace,” Buchanan said, such as the adjustable water bottle holder that can fit both his disposable water bottle and his daughter’s reusable water bottle. “I had a yearning to develop some products that I thought would be useful in the marketplace,” Buchanan said. “It’s really just driven by a passion and love of developing products.” n

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Br a v o ! E n t r epr ene u r Aw a r d s 30 Lifetime Achievement Award: Carol Ann Schneider

33 Regional Spirit Award: Impact100

Wom en in Busines s 34 Women in Business panelists traveled varied paths to ownership

38 Baumann increases access to entrepreneurship

Br a v o ! E n t r epr ene u r W i n n e r s 40 Ben Caya

Bravo! Entrepreneur Event Sponsors: Bravo! Entrepreneur Lifetime Achievement Award winner: Carol Ann Schneider

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BRAVO ! EN TR EP R EN EU R L I F E T I M E A C H I E V E M E N T AWA R D WI N N E R

Carol Ann Schneider

SEEK’s Schneider continually raises the bar BY MARYBETH MATZEK, for BizTimes Carol Ann Schneider believes in goal-setting and working hard until it’s done. It’s that kind of tenacity that propelled her to

start what is now SEEK Careers/ Staffing Inc. 46 years ago with a neighbor and keep it going and growing through two recessions

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and industry changes. “I set a goal and when I reach it, I set another one. Goalsetting is a part of our culture here at SEEK,” said Schneider, who remains the company’s chief executive officer. “We set those goals and then we believe we can achieve them.” Schneider is the recipient of the 2017 BizTimes Lifetime Achievement Award, presented at the May 24 Bravo! Entrepreneur and I.Q. (Innovation Quotient) Awards Luncheon during BizExpo at Potawatomi Hotel & Casino. SEEK provides temporary office, accounting, skilled and light industrial workers to a variety of businesses while another branch, SEEK Professionals, focuses on filling direct-hire positions. Headquartered in Grafton, SEEK has 15 offices in Wisconsin and one in Minnesota. Schneider began SEEK in her neighbor’s bedroom while

waiting to hear if she had a teaching job at Milwaukee Area Technical College’s North campus in Mequon. “I had three children under 4 and I had to do something,” she said. Schneider got the idea to launch a temp agency while in college. She was a temp herself, and one day she saw the invoice for her services. “I couldn’t believe the difference between what the company paid the temp agency and what I was paid. I knew then that if I ever started a business, it would be a temp agency,” she said. Getting started was easier said than done. Most businesses in Ozaukee County were unfamiliar with temp agencies and what they did. “I had a lot of people say to me, ‘You want me to hire you to do what?’ I would explain to them

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that if their secretary called in sick, I could help them out or provide them with a couple of workers if a big project came in,” Schneider said. “People eventually got it.” When Schneider did not get a position at MATC, where she had been working informally for years, she left the technical college. “I was sitting on the floor talking to my partner and didn’t know what to do next and she said, ‘buy me out,’ so I did,” Schneider said. “Suddenly, I had this whole business to myself.” Joel Schneider, SEEK’s president and Carol’s son, said his mother is driven to succeed. “She is constantly taking chances to move the company and industry forward,” he said. “She is always reading and is very astute about what’s going on in business and how that may affect the industry.” For example, in the early 1980s as the economy slowed,

Carol Schneider realized SEEK needed to change. “I called businesses looking for permanent workers and said to them, ‘How many applications do you get each time you place an ad? What if I went through them for you and gave you the top candidates for a fee?’” Schneider said. “Companies thought it was a great idea and the whole direct hire side of my business was born.” When word processing began replacing typewriters and people wanted to learn how to use word processors, Schneider offered classes and helped area businesses looking to hire people who knew the skill. “It is always about responding to what the market and customer wants,” she said. SEEK’s most challenging time was the Great Reecession. Schneider took a 50 percent pay cut and asked senior managers to take a 20 percent pay cut, but

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she still had to lay off employees. “That was painful,” she said. “But when business is bad, hiring temp workers is the first expense cut.” The firm’s business came back as the economy started to rebound and companies were wary to bring on permanent workers, which created a lot of opportunities. “Businesses have learned that there’s an average number of workers they are comfortable with, but that you can vacillate up and down as needed using temporary workers,” Schneider said. Today’s tight labor market increased the demand for SEEK’s direct hire program as businesses struggle to fill their open skilled positions. “The trick now is finding the right people,” Schneider said. Joel Schneider called his mother a “worker bee.” “Her leadership style is to do

what it takes to get results, but don’t compromise your values,” he said. “She has a wonderful ability to engage people who normally wouldn’t be engaged. She really believes in people.” Community service is a vital part of SEEK, Carol Schneider said, adding that service is included in employees’ job descriptions. “Our business is people and the best way to meet people is being active in the community,” she said. Ever the goal-setter, Schneider wants to continue adding more offices and also expand SEEK Professionals, which specializes in professional career services and the identification, including the placement, of professionals in manufacturing and large services. “That’s my new challenge. I have a goal of hiring 25 recruiters and I am up to eight,” she said. “Once I do that, there will be another goal.” n

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Impact100 receives Regional Spirit Award for collective model BY ALYSHA SCHERTZ, for BizTimes

When Anne Trunzo heard about what Impact100 was doing in other parts of the country, she knew she had to bring it to southeast Wisconsin. Impact100 is a 501(c)3 organization focused on bringing together women to collectively support local causes and organizations. “The collective giving model really resonates with a lot of women,” Trunzo said. “It allows us to come together, raise awareness, and be a part of something bigger than we could individually.” Impact100 Greater Milwaukee is the recipient of the 2017 BizTimes Regional Spirit Award, presented at the May 24 Bravo! Entrepreneur and I.Q. (Innovation Quotient) Awards Luncheon during BizExpo at Potawatomi Hotel & Casino. There are 43 Impact100 chapters in the United States and Australia, with 14 more in development, Trunzo said. In each chapter, at least 100 members – women, for most of the chapters – donate $1,100 annually and earn a vote toward the distribution of $100,000 grants to local organizations. Grants are chosen and awarded via a competitive process that culminates at an event in June. Impact100 Greater Milwaukee,

founded in May 2015, was the 28th chapter to form in the U.S., and exceeded its membership goal in its first year. In June 2016, Impact100 Greater Milwaukee awarded two $100,000 grants. Literacy Services of Wisconsin was awarded a grant to develop a new high school equivalency program to help students meet the needs of today’s employers, and Neu-Life Community Development Center earned a grant to expand after-school, summer, and youth-development programs in Milwaukee’s Lindsay Heights neighborhood. Adaptive Community Approach Program, Rebuilding Together Greater Milwaukee and Zachariah’s Acres each received $6,000 merit grants in the first year, as well. “It’s so rewarding to be a part of something that creates meaningful change in the community,” said Cynthia Harris, Impact100 Greater Milwaukee co-founder. There’s no requirement to volunteer, and members can be as involved as they want to beyond their monetary donation, Harris said. Approximately 90 members take part in the grant review process, which includes a deep

application and finance review, as well as site visits. To date, there are 308 members of Impact100 Greater Milwaukee. The organization is reviewing grants for 2017 and will select five local nonprofits as finalists to present at the annual gathering on June 7. Finalists are selected from one of five main cause areas, including: arts and culture, education, environment, family, and health and wellness. Each contributing member gets one vote; this year, three organizations will be awarded a $100,000 grant.

The remaining organizations split the residual funds as merit grants that can be used for any purpose. After the grants are awarded this year, Impact100 Greater Milwaukee will have awarded $526,000 to organizations throughout southeastern Wisconsin. Collectively, Impact100 organizations throughout the world have donated more than $45 million since 2001. “Our focus is really to be an open invitation to give,” Harris said. “So much of this is about learning and awareness and creating exposure for organizations in our community, as well. Many of our members stay on to support these organizations in other ways after the grant review process; it’s truly rewarding.” Membership is open to any woman age 21 or older from June through December each year, Trunzo said. n

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W O M EN I N BU S I N ES S

Crystal Miller

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Women in Business panelists traveled varied paths to ownership BY MARYBETH MATZEK, for BizTimes Dawn Vogelsang never imagined owning a business. Now president and owner of Waukeshabased Hamacher Resource Group Inc., she was looking for the right job out of college when she met the company’s founder, Dave Hamacher. She joined the drugstore category management and marketing services company, rising

through the ranks as the company grew, eventually becoming vice president of operations. “When I started, Hamacher was a small company, so I learned every aspect of the business,” she said. When Hamacher sold the business in 2000 to an out-of-state firm, Vogelsang became the general manager of the local operation.

“I didn’t like where the (parent) company was going and I knew I had to do something,” Vogelsang said. “I talked with the other members of the local senior management team and worked out a plan to purchase Hamacher back, with me as a majority owner. By the end of 2001, I was a business owner.” Hamacher is one of more

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than 9.4 million U.S. companies owned by women, which employ nearly 7.9 million people and generated $1.5 trillion in sales as of 2015, according to the National Association of Women Business Owners. Vogelsang joined three other women business owners on May 24 at the BizTimes Women in Business breakfast panel at BizExpo to discuss the role women-owned businesses play in shaping the economy. The discussion was moderated by Kimberly Kane, founder of Kane Communications Group. While Vogelsang admitted to being a bit out of her comfort zone in taking on the title of owner, Crystal Miller always wanted to run a successful business. The president of Frontida Assisted Living, Miller got into the industry in 2009 when she purchased several area assisted living homes with her husband. “It turned out the homes were in rough shape, so I worked my tail

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off so we could keep the business going,” Miller said. “Our path to success was focusing on our employees, since they are on the frontlines providing care to our residents. We want to provide them with a great working environment.” Miller succeeded in doing just that. Frontida Assisted Living

“I’m an entrepreneur at heart and also believe you should never be afraid of asking questions.” Linda Katz has seen her career go full circle. After watching her father run a plastics injection molding business while growing up, and working there during high school and college, she is

working in manufacturing. “I loved the camaraderie, loyalty and tenacity of my fellow manufacturing employees,” she said. After working at large businesses like GE and Cummins Engine Co., Katz preferred the personal connections at smaller

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won a Milwaukee Journal Sentinel Top Workplace award for the past two years. The company has 140 employees, with women making up 95 percent of that total. Now with eight assisted living homes, Miller found success focusing on an underserved market: older adults with mental illnesses. “As a business owner, you need to find your way,” she said.

now chief executive officer of Molded Dimensions Inc. in Port Washington. Katz became majority owner of the company in 2001, with the remaining ownership shared by employees through an employee stock ownership plan. Katz, who earned an engineering degree at Duke University and an MBA with a general management focus at Harvard University, always enjoyed

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businesses. Since she respected and admired her father’s company, Katz decided to look for a small molder or stamper to purchase in Wisconsin with her husband. Molded Dimensions fit the bill. Katz is impressed with the number of women now working in manufacturing – very different from when she was the only woman in her mechanical engineering track at Duke.

IT.

“Manufacturing is basically a huge team of diverse people working hard together to accomplish a challenging goal. Essentially, we are a very highfunctioning family,” she said. “Many women are very wellsuited to this work if they are great communicators, team players and nurturers.” Holly Ritz purchased Milwaukee children’s book distributor The Penworthy Co. in May 2016 after a friend called her out of the blue. Ritz had been working as vice president of wellness sales at fast-growing Chicago health care startup Higi. There’s never a “right” time to take the leap into entrepreneurship, she said. While Vogelsang initially was unsure about owning a business, there are no doubts now. “I had such a drive to not have things fall apart for Hamacher and its customers that I just had to take action” to buy the company, she said. n

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W O M EN I N BU S I N ES S W O M A N E X E C U T I V E O F T H E Y E A R

Baumann increases access to entrepreneurship BY ALYSHA SCHERTZ, for BizTimes Wendy Baumann, president and chief visionary officer of the Wisconsin Women’s Business Initiative Corp., is the recipient of the 2017 BizTimes Woman Executive of the Year Award. She was presented with the

award at the Women in Business breakfast at BizExpo on May 24 at Potawatomi Hotel & Casino. Baumann started her career with WWBIC 24 years ago. Under her leadership, the Milwaukee-based organization

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has grown from a $200,000 budget and a staff of two to a $5.7 million budget with a staff of 50, four regional offices and three rural satellite offices. “We’ve really grown our statewide presence,” Baumann said. “We have some presence in almost all 72 Wisconsin counties, and we’ve remained very focused on our mission work.” Baumann previously served as the director of small business development at Milwaukee Area Technical College, and was familiar with the work WWBIC was doing to help entrepreneurs in the region. “I had known about WWBIC since its inception, and was excited about the opportunity to become more involved,” she said. For Baumann it was the “magic” of WWBIC’s business model that drew her in initially. WWBIC, which is celebrating its 30th anniversary in 2017, is a 501(c)3 nonprofit organization that helps entrepreneurs in Wisconsin who want to start or expand a business, but face barriers in accessing traditional financing or resources.

end of 2017. The next strategic plan will be, according to Baumann, more global in nature. “Our goal is to focus on expanding our services to the bilingual and Spanish-speaking communities, as well as the rural communities, throughout Wisconsin,” she said. WWBIC has focused on recruitment of more bilingual loan officers and has developed a Spanish version of its website, as well. “Wendy brings an unmatched energy to her position at WWBIC,” said Michael McDonagh, shareholder at Mallery & Zimmerman S.C. in Milwaukee and board chair of WWBIC. “She is completely devoted to the mission; and so is the team she leads. A lot of organizations don’t have the extra ‘extra’ that WWBIC has, and that is directly attributable to Wendy.” In addition to her work for WWBIC, Baumann led the team that launched Milwaukee as a Kiva City, was involved in the development of the Milwaukee Public Market, co-founded

She is completely devoted to the mission; and so is the team she leads.” — Michael McDonagh, WWBIC board chair

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The organization not only provides capital assistance in the form of micro loans, but also provides one-onone assistance and business education to its clients. Since its incorporation in 1987, WWBIC has loaned $53.2 million, helped 4,385 entrepreneurs in Wisconsin create and retain 9,884 jobs and assisted 57,405 clients, Baumann said. The organization still is focused on providing evening and weekend business education components to its members, but also has added an online component that Baumann plans to continue to grow. WWBIC will finish up its threeyear strategic plan, which primarily focused on infrastructure, at the

the national Association of Women’s Business Centers, coformed the Invest in Wisconsin community development financial institutions partnership, and currently sits on numerous regional and national boards. She has spoken at national and international forums, including the global Microcredit Summit and the United Nations, with an emphasis on her expertise in women’s entrepreneurship and inclusive microcredit practices. “This is an amazing honor,” Baumann said. “This organization and this mission means so much. We have an incredible team of people in place here – some who have been here 10, even 15 years. I feel so lucky to be a part of this team and the work we’re doing.” n

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BEN CAYA President, Spike Brewing Milwaukee www.spikebrewing.com Employees: 11 Milwaukee-based Spike Brewing has become one of the top three homebrewing equipment companies in the country, and it’s all thanks to president Ben Caya and the company’s innovative welding and manufacturing process. Caya founded Spike Brewing in 2012 while still in college at the University of Wisconsin-Milwaukee. He financed the entire operation on his own and in five years, has not taken on an investor. Customer feedback has helped

TAMI GEMMELL Owner, Azana Salon and Spa Brookfield www.azanaspa.com Employees: 68 Tami Gemmell opened Azana Salon and Spa in March 2000. Today, the 9,000-squarefoot facility is the largest full-service salon and day spa in the Brookfield area. This October marks five years since Gemmell and the employees at Azana Salon and Spa suffered an unspeakable tragedy when a lone gunman, Radcliffe Haughton, entered the salon and opened fire. The incident killed three women – Zina Daniel, Maelyn Lind and Cary Robuck – and injured four others.

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Mark Grosskopf loves to lead, and has never been one to turn down responsibility. As president, chief executive officer and owner of Milwaukee-based New Resources Consulting and its parent company, New Resources Companies, Grosskopf has demonstrated that. Since the company’s inception in 2003, it has grown tenfold and has been fully committed to growth, investment and diversification, Grosskopf said.

For Gemmell, it was never a question of whether or not she’d reopen the salon; she owed that to her Azana family. Today, the salon is thriving. “Tami’s persistence, positivity, support of her loyal employees, motivational leadership and unmatched industry competitiveness make her a true entrepreneurial anomaly,” said longtime employee and spa director Julie Gemignani. Gemmell rebuilt and renewed the business. “She established an unparalleled social media marketing presence in the salon and spa industry and at the same time was available to every past and present employee for support and motivation,” Gemignani said. “The positive atmosphere of Azana Salon and Spa is undeniable and our success mirrors our fierce leader’s vision, diligence and persistence.” Gemmell employs a diverse team of more than 65 salon and spa professionals. “She led her employees and their families out of the ashes in the face of tragedy, indescribable loss and grief,” Gemignani said. “She supported past and present employees selflessly while denying her own needs. She persistently and diligently faced negativity with positivity and unrelenting motivational leadership.”

“We like to believe our growth is due to the hard work we’ve done to gain client trust, and then continuing to not take it for granted,” he said. NRC, according to Grosskopf, is dedicated to technology solutions and services that drive bottom line results for its clients. Specialties include enterprise application implementation and integration, data science strategies, program and project management, and application development consulting services. New Resources Consulting has served more than 250 organizations in a wide variety of industries from its three locations, in Milwaukee, Kansas City and Winston-Salem, N.C. Grosskopf also serves as president, CEO and owner of additional New Resources companies, including Clinical Path Consulting, which helps health care providers take advantage of technology to make operations more efficient, meet regulatory requirements and improve the quality of patient care; and Inflection Point Solutions, which works with water and wastewater treatment agencies across the United States to implement industry best practices and make better use of technology to improve operations. Grosskopf credits his success partly to the team he’s surrounded himself with, and the peer groups he’s been able to collaborate and learn from over the years.

ERIC HABERICHTER CEO and co-founder, Access HealthNet Milwaukee www.accesshealthnet.com Employees: 40 In three short years, Access HealthNet has moved offices four times to accommodate its growth. Most recently, it moved from 3,000 square feet of space in The Shops of Grand Avenue to a 14,000-square-foot space on the 10th floor of 105 W. Michigan St. in Milwaukee. The company also plans to hire an additional 50 people in 2017. Eric Haberichter founded Access HealthNet on the principle of connecting health care providers and self-funded entities through

a technology-enabled service platform. He champions the vision of the company by participating in nearly every aspect of the business. Haberichter and his co-founder, Leslie Kolowith, provided 100 percent of the company’s initial operating capital and work effort, which included brand, intellectual property and business case development. Access HealthNet hired its first employee in 2015, and now employs more than 40 people. The company set out to meet the needs of all stakeholders in the health care process by creating a platform that could support shopping for services and the efficient satisfaction of claims. Access HealthNet works with both employers and health care providers to create bundled health care procedures that are offered for a flat rate. The company also completes the billing and collection on behalf of the provider. Providers and employers using the service have more predictability for their businesses, and employees receive the added benefit of knowing how much their health care procedures will cost. Access HealthNet has about 4,000 providers under contract nationally and has priced out about 900 health care services.

THOMASINA IVY President and CEO, TMI Consulting LLC Milwaukee www.tmiconsulting.org Employees: 42 Thomasina Ivy started her career in the corporate world, and was told it would take several years before she’d be considered for an executive position. She rejected that notion, and in 2000 founded TMI Consulting LLC as a one-person firm in Milwaukee. Since its inception, Ivy has grown the firm into a national consulting organization with 42 employees and a projected $6 million in revenue for 2017. The company also has offices in

Washington, D.C., and in Fairfax, Virginia and currently serves a wide variety of clients in federal, state and local governments, including the U.S. Department of the Treasury, the State of Wisconsin and several commercial companies. TMI was founded on and remains committed to three basic pillars: its employees, its community and its clients, Ivy said. Ivy is committed to hiring a diverse workforce, and invests heavily in her and her employees’ education and professional development. Recently, the company began an internal mentorship program that pairs soon-to-be retirees with new, younger, more tech-savvy employees. Ivy, a Milwaukee native, has a strong commitment to job creation and opportunities for disadvantaged populations in Milwaukee and throughout the country. In its first year, TMI Consulting applied for the Historically Underutilized Business Zones program, which helps small businesses in certain urban and rural communities gain preferential access to federal procurement opportunities. The goal of the program is to promote economic development and employment growth in distressed areas. Under Ivy’s leadership, TMI Consulting has developed programs to train and hire employees from HUB Zones across the country.

TMI Consulting, LLC is a Professional Services Company providing innovative information technology and management consulting solutions to the federal, state and local governments and commercial clients. We bring together experienced professionals with state of the art technology tool, best practices, and products to support our customer’s mission. Our Services Include: Business Process Reengineering Financial Management Support IT Infrastructure Project and Program Management Security Services

CONGRATULATIONS! TMI Consulting, LLC is proud to congratulate its founder and CEO, Thomasina M. Ivy, along with all of the other BizTimes’ 2017 Bravo! Entrepreneur Award Winners.

1845 N Farwell Avenue Suite 209, Milwaukee, WI 53202 biztimes.com / 41

BRAVO ! EN TR EP R EN EU R AWA R D WI N N E R S

MICHAEL JURKEN President, Majic Productions Waukesha www.majicpro.com Employees: 35 Michael Jurken started his company at the age of 12, and he named it then, too. Majic: (M)ichael (A)ndrew (J)urken (i)s (c)ool. At the time, he had a boombox and cassette tapes and started booking DJ “gigs” with local friends and family. That was 15 years ago. He transferred to the University of Wisconsin-Madison after his freshman year of college in Miami to focus on

42 / BizTimes Milwaukee MAY 29, 2017

the company and has been growing it ever since. Over the past six years, Jurken has grown Majic to the full-scale production company it is today. Majic has experienced more than 50 percent growth year-over-year for the past four years and, in 2016, moved into a new, larger facility to accommodate the growing staff and inventory. The company recently increased its scope and opened a new branch of business focused on audiovisual installations. Majic has secured AV production jobs all over the country, producing events for presidential and vice presidential candidates, corporate conferences and parties. Jurken credits the success of the company to empowering and trusting his employees, encouraging creativity, and investing in top-of-the-line products and custom pieces. Jurken expects Majic to continue its rapid growth, and plans to bring additional jobs to the community. “Michael’s door is always open,” said Jessica Olson, business development manager at Majic Productions. “He is at work every day, not only leading the team, but also encouraging and empowering each and every one of us to work together to grow the business.”

NEIL KAROLEK President, TLX Technologies LLC Pewaukee www.tlxtech.com Employees: 48 In 1996, Neil Karolek and his team started TLX Technologies with the goal of bringing several new, high-speed digital valves to market for the automotive industry. The advanced development was designed to keep children from being injured in the event of airbag deployment in a vehicle collision. The company utilizes proportional, high speed, high temperature and latching technologies to custom design electromagnetic solenoid products to meet customers’ specific needs.

Since the initial application, TLX has grown and adapted the technology for additional applications in the automotive and power sport industries, including safety, fuel efficiency, fire protection and high-volume industrial applications. TLX has been named to the Inc. 5000 list three times, and in 2015 opened a wholly-owned subsidiary in Changshu, China that manufactures and services automotive and industrial markets in Asia. The company also recently finished $1 million in equipment upgrades for its Pewaukee facility, which has been approved for full-scale production of a solenoid valve component for an additional Tier 1 automotive supplier. Karolek currently employs approximately 48 people, and remains focused on creating a company culture that emphasizes community and work-life balance. TLX is dedicated to providing a safe work environment; fosters employee participation and teamwork; and strives to provide employees with the tools, training and support needed to achieve success. Karolek also is a regular supporter of the national effort to promote jobs in manufacturing and hosts approximately 300 students each year for Manufacturing Day.

JOHN MCWILLIAM Owner, Scathain Milwaukee www.scathain.com Employees: 25 From a 45,000-square-foot Walker’s Point warehouse, John McWilliam and his team of designers at Scathain create one-of-a-kind pieces of art and furniture for businesses, celebrities and recognized designers all over the world. Scathain (pronounced skuhthayne) is a Gaelic word for “mirrors” or “smooth reflective surface.” McWilliam started the company as a

one-man show in 2005, refurbishing a set of bar stools for the Iron Horse Hotel in Milwaukee. He had no partners and no investors. Since that time, the company has grown to more than $2 million in revenue and 25 employees. New inquiries, both national and international, have quadrupled over the past six months and the company continues to grow, doubling its gross revenue annually. Scathain employees strive to craft artistic furnishings and functional accents using metal, wood and mirror that last longer than a lifetime. “John had a vision, and he made it come to life,” said Jackie McWilliam, John’s wife. “He kept his eye on the big picture and now employs a team of individuals each composed of their own high-level ingenuity and skills, yet always learning and expanding their talents under John’s encouraging eye.” Scathain’s products have gained international attention. According to Jackie, John’s leadership and faith in his employees have created an atmosphere in which people come to work and honestly care about the success of the company. It’s reflected in their work, she said. “Each piece created is part of them,” Jackie said.

DIANE OMDAHL President and CEO, i65 Mequon www.i65.com Employees: 6 More than 3.5 million Americans turn 65 each year. Most of those people will take advantage of health insurance through the government provided Medicare program, but only if they can navigate the system. Anyone who’s familiar with Medicare knows that can be challenging. But not for Diane Omdahl. She gets it. Omdahl is a serial entrepreneur familiar with providing help. After years in the home health business, Omdahl founded

Congratulations! from the strategic partners behind

65 Inc. to assist those turning 65 with Medicare education and consultation. “Anyone who’s turned 65 or helped someone knows what a confusing maze Medicare can be,” said David Glyzewski, partner at i65 LLC. “There is a lot of information, and it’s way too easy to make major mistakes. (Diane) launched 65 Inc. to provide guidance to those individuals.” Omdahl has worked with clients in 44 states and recently helped launch i65 Medicare enrollment software, in October 2016. i65 provides expert Medicare guidance. Through a series of questions, the tool sifts through hundreds of Medicare rules and regulations and develops an individual-specific roadmap with action steps and education. For Omdahl, education is the key to success. She has started three companies, each addressing a need for education and resources that was either nonexistent or inadequate. In 1987, Omdahl started Beacon Health, an educational resource company for the home health industry. She developed an extensive library of training videos, manuals and newsletters for home care nurses and agencies, including training courses and Medicare compliance modules. Much of her material still is used in training today.

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I . Q . [I N N O VATI O N Q U O TI E N T ] AWA R D WI N N E R S

David Swanson

BRAISE RESTAURANT SUPPORTED AGRICULTURE Milwaukee www.braiselocalfood.com/rsa Innovation: Sustainable farm-to-table program When David Swanson launched his Milwaukee restaurant, Braise, in 2006, he did so with a motive to return to slow natural foods and bring awareness to where food comes from. Swanson knew there was a disconnect between the chefs in the community who wanted fresh ingredients and the local farmers supplying them. He set out to change that. In 2008, Swanson formed the Braise Restaurant Supported Agriculture program.

The RSA uses a custom online ordering program with weekly delivery and flexible options for restaurants and consumers. It addresses the obstacles that have prohibited restaurants from using local products in the past, primarily time and cost. Braise RSA is free for farmers, and member restaurants pay a nominal fee to have access to locally-sourced produce. Braise purchases products directly from farmers and producers and then resells them to members of Braise RSA and Braise on the Go, the consumer retail side of the business. Farmers are able to use a centrally-located food hub to drop off all their produce. The RSA has three dedicated employees and two trucks it uses to pick up, package and deliver the products to area restaurants and consumers. Braise is working on developing several more food hubs, and plans to have those operational by summer. Braise RSA has relationships with more than 400 farms in Wisconsin, using 120 to 140 on a continual basis to provide a wide variety of seasonal vegetables, fruits, dairy, meats, cheeses and dried goods. Producers are able to set the prices, and chefs will purchase the food at a markup to support Braise RSA’s facilitation of the sale.

Willow Macy and Alana Platt

CLASSMUNITY Milwaukee www.classmunity.com Innovation: K-12 fundraising software If you have children, or you know anyone who has children, you’ve probably been asked to buy something for a school fundraiser. Historically, these fundraisers are product-based: pizza, cookie dough, wrapping paper, etc. After paying suppliers, schools typically only net between 40 and 50 percent of the proceeds. Alana Platt, co-founder and chief executive officer of Classmunity, wanted to change that. Classmunity is a fundraising management platform designed to help K-12 schools

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Jim Meissner

COLOR INK INC. Sussex www.colorink.com Innovation: Creative displays, signs and 3D toy and craft products

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More than 25 years ago, Sussex-based Color Ink Inc., showed off its innovative approach to print with the launch of its popular “Cow of a Different Color” campaign. Since that time, the company has continued to grow, and still offers creative, eye-catching displays, signs and other fun products to existing and new customers alike. Jim Meissner founded Color Ink in 1984

fundraise more efficiently, and help them monitor and reduce fraud. Classmunity returns a minimum of 91 percent to schools. Wisconsin has 426 public school districts and more than 850,000 students in approximately 2,300 schools. Public schools today are funded at a rate approximately 14 percent lower than they were in 2008. Districts are faced with teacher layoffs, school closings, and the reduction and elimination of after-school activities and arts programs. Fundraising has become an inevitable part of public school education. Wisconsin is not alone; states across the country are having the same struggles. Classmunity allows schools to personally brand an online fundraising campaign. There is no drain on the teacher, no classroom time wasted and no hassle of paperwork, money or products. Because all the money is secured online, the software also safeguards against fraud. Launched in May 2016, Classmunity has been installed in eight Wisconsin public schools and has helped them raise and manage more than $1.5 million. The company is positioned for major expansion in Wisconsin and plans to enter markets in Michigan, Missouri and Minnesota in the next 12 to 18 months.

with the intent of using his experience in commercial art and advertising to provide a unique service to his clients. The company has expanded far beyond traditional commercial printing. It has invested in state-of-the-art technology and has shifted its focus to more specialized products, custom pop-up displays, wide format printing and innovative signs. Today, Color Ink employs more than 75 people, operates in 100,000 square feet of space in Sussex and remains completely family-owned and -operated. In 2012, Color Ink established FunDeco LLC, a consumer products division that creates and sells sustainable products for the children’s toy industry. The products include roleplaying accessories like pop-up play houses, lemonade stands, games, craft accessories, DIY projects and home décor, such as the popular cardboard No Cuckoo, Cuckoo Clocks. FunDeco partners with several online retailers, including Walmart.com, Fab.com, Wayfair and Zulilly, and also opened a retail store adjacent to its Sussex headquarters that is open to the public. The printing industry is one that requires innovation, and Color Ink’s commitment to technological investment and innovation has allowed the company to reach new demographics of customers and experience continued financial growth.

James Hunter

DYNAMIC SOLUTIONS WORLDWIDE LLC Milwaukee www.dynatrap.com Innovation: Dynatrap insect trap The World Health Organization calls the mosquito “the greatest menace” when it comes to spreading insect-borne diseases like malaria, dengue fever, yellow fever and most recently, Zika. Milwaukee-based Dynamic Solutions Worldwide LLC is doing its part to eradicate the menace with the creation of its patented Dynatrap insect trap. The trap uses UV light and CO2 to lure mosquitos and other predatory insects into the trap. Once inside, the insects are vacuumed into the retaining cage,

where they eventually dry up and die. As the prevalence of Zika expanded to more areas of the world, Dynamic Solutions Worldwide continued to see an increase in demand for its product. The company has doubled its revenue each year for the past six years. The trap is chemical-free, making it safe to install around pets and children, and it starts working instantly to disrupt the mosquito life cycle. Maximum impact is achieved in six to eight weeks, said Darcy Johnson, controller at Dynamic Solutions. The Dynatrap extends beyond just mosquitoes and can trap other pesky insects, including black flies, moths, horse flies, deer flies, sand flies, yellow jackets, Asian beetles and Japanese beetles. The trap does not attract honeybees and other beneficial insects like dragonflies. Users empty the retaining cage every one to two weeks, and only need to replace the UV light bulb every four months. Currently, Dynatrap is sold in the U.S. at retailers like Costco, Sam’s Club, Bed Bath and Beyond, Walmart, Ace Hardware, The Home Depot, Amazon and others; as well as in Canada, the Caribbean, Mexico, and Central and South America.

Jessica Bell

HALOVINO Whitefish Bay www.halovino.com Innovation: Shatterproof, stackable, stemless wine glass There are more than 100 million wine drinkers in the U.S. Like Jessica Bell, these wine drinkers have somewhat limited options when it comes to drinking their favorite red or white at non-glass venues like stadiums, theaters, fairs and festivals. Bell used her knowledge and experience to design and produce HaloVino, the first shatterproof, stackable, stemless wine glass on the market. Launched in 2016, the company addresses

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B r a v o ! E n t r epr eneu r Aw a r ds 30

Lifetime Achievement Award: Carol Ann Schneider

Regional Spirit Award: Impact100

Wom en in B usiness 34

Women in Business panelists traveled varied paths to ownership

Baumann increases access to entrepreneurship

B r a v o ! E n t r epr eneu r W in ner s 40

Ben Caya Tami Gemmell Mark Grosskopf

Eric Haberichter Thomasina Ivy

Michael Jurken Neil Karolek

John McWilliam Diane Omdahl

I . Q . ( I n no v a t ion Q uo t ien t ) W in ner s

Congrats on your award. Your strategic partners - Joel, Erin, and Todd.

Braise Restaurant Supported Agriculture Classmunity Color Ink Inc.

Dynamic Solutions Worldwide LLC Halovino

Lynch & Associates Engineering Consultants LLC OnkÖl Stormwater Solutions Engineering LLC True Process Inc.

Bravo! and I.Q. Awards winner profiles by: Alysha Schertz and Marybeth Matzek

Photos by: Paul Gaertner, White Dog Photography

SVA CER TI F IE D P U B L IC A C C OU N T A N TS

problems associated with large-scale wine consumption in non-glass venues, she said. Bell currently has the plastic wine glasses manufactured at a facility in Sussex. They come in two pieces and are recyclable, reusable, dishwasher-safe and BPA-free. Bell previously served as a sommelier in New York City, worked at a winery in Spain and owned a wine school in Milwaukee and Chicago for 10 years. In less than a year, HaloVino wine glasses are already used at Miller Park, the BMO Harris Bradley Center, Wisconsin State Fair, Milwaukee Repertory Theater, and several other retailers and wineries across the country. According to Bell, the size and shape of the wine glass enhances the smell and taste of the wine. Venues across the country are losing out on valuable concession dollars by either not serving the wine drinking community at all, or by depreciating the quality and taste of the wine by serving it in the wrong glasses, she said. HaloVino’s innovative geometry, a narrow rim and a wide body, makes the wine taste better and prevents spills. The goal is to provide venues a costeffective solution for serving wine drinkers without sacrificing taste or quality.

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I . Q . [I N N O VATI O N Q U O TI E N T ] AWA R D WI N N E R S The as-built records reflect any changes the contractor made throughout the building process. Historically, construction observation would be completed with paper and electronic documents, hand drafting of as-built Gary Randle II drawings and GIS transfer of CAD files. The Bison solution eliminates those asLYNCH & ASSOCIATES - built drawings and transfer of files, and allows ENGINEERING CONSULTANTS LLC anyone involved in the project to access those New Berlin documents in real-time from any mobile device. www.lynch-engineering.com and Contractors, civil engineers and www.bisongeo.com construction managers are using the solution to track where work is happening, Innovation: Bison Construction personnel activities, production, as-built Solution dashboard photos and videos. In addition, companies New Berlin-based Lynch & Associates and municipalities with infrastructure assets Engineering Consultants LLC is on the cutting can use the solution to track and monitor edge of technology. Clients are lining up where all the assets are located, where new to work with the company and its patentassets are being installed, and any repairs or pending Bison Construction Solution. service work being done on those assets. The Bison Construction Solution combines a According to Tim Lynch, supervisor, project dashboard with geographic information the new process can create significant cost system mapping on a real-time basis. savings and allow for instantaneous as-built Owners, contractors and engineers on a project records – unusual in the industry. Currently, can observe the construction project as it’s being clients have to wait months or even years for built from any personal or handheld device. competitors to update the GIS records, he said. On the job site, assets are recorded with Lynch & Associates is growing at a geo-spatial referencing and as-built records 50 percent rate, and the Bison solution are updated as the work progresses. is driving that growth, Lynch said.

Carrie Bristoll-Groll

STORMWATER SOLUTIONS ENGINEERING LLC Milwaukee www.stormguarden.com Innovation: StormGUARDen stormwater management device According to the Milwaukee Metropolitan Sewerage District, one inch of rainfall in the metro Milwaukee area is equivalent to 1.5 billion gallons of excess water. Carrie Bristoll-Groll, a stormwater engineer for more than 25 years, knew there had to be a better way to conserve that water and eliminate pollutants from the waterways – particularly for smaller sites interested in water conservation and sustainability. 46 / BizTimes Milwaukee MAY 29, 2017

Bristoll-Groll combined multiple stormwater engineering practices with weather resistant material to produce StormGUARDen, the first stormwater management system that combines a rain garden and a rain barrel in one eco-friendly system. The StormGUARDen is a composite material planter placed at the end of an outside downspout that can reduce the potential for overflows to basements that can occur with rain barrels by holding 6.5 times more water. It is modular and removable, and designed for easy maintenance. Not only does the system prevent runoff, but it also grows a garden and protects local waterways from stormwater pollution. In the system, rooftop rainwater flows through a downspout into a stone-filled trough; water spills over into planting containers, where special soil filters contaminants and excess water from the containers flows to the bottom reservoir before being released into the ground. The StormGUARDen has the capacity to store 6.5 rain barrels of water, while also growing a variety of plants, including fruits and vegetables, and removing bacteria and rooftop pollutants before releasing the water back into the ground. Polluted stormwater is the top cause of stream impairment in urban areas and runoff can cause flooding and erosion that wash away wildlife habitats.

or a different emergency arises. The small box feeds data from one device to another, but goes beyond the familiar emergency pendant. ONKÖL can be programmed to remind seniors to take medications and can send notifications to caregivers if any dosages are missed. It can link directly via Bluetooth or USB with health monitors that track blood pressure, glucose, Marc Cayle pulse and weight. ONKÖL also can connect with home devices such as smoke and carbon ONKÖL monoxide detectors and motion sensors, and Milwaukee alarms in case windows or doors are left open. www.onkol.net In addition, ONKÖL uses caller ID to keep track of who’s calling and can also Innovation: Connected monitoring device be programmed to contact a staffed 24Few products on the market today can utilize hour call center or emergency line in the connectivity in a way that is robust, accurate event a family member cannot respond. and still simple to use. ONKÖL has created a ONKÖL hub owners are charged a monthly simple-to-use invention that seamlessly and fee for cellular access. The startup is contracted to easily connects the lives of elderly individuals piggyback off the cell towers of multiple carriers. with their loved ones and caregivers. ONKÖL released the device at the Consumer The company aims to help keep senior Electronics Show in January 2015. Since then, citizens in their homes, while also offering the company has won several awards, including family members peace of mind by monitoring the CES Editors’ Choice Award, the Top Ten of CES how their loved one is doing in their home. Award from TPN and the Edison Award. ONKÖL The ONKÖL device has the ability to was recently nominated for an Innovation in notify designated family members via text Health in the Connected Life category at the 22nd or email if vital signs become irregular annual Global Mobile Awards in Barcelona, Spain.

The True Process Inc. team

TRUE PROCESS INC. Milwaukee www.trueprocess.com Innovation: ViNES medical device connectivity platform Milwaukee-based True Process Inc. has spent the past three years building a unique and innovative medical device platform known as ViNES. The platform allows medical facilities to capture and store high-resolution medical data from virtually any connected device. Data can be translated into a vendorneutral format and then delivered on demand for the purpose of research and analysis – not just record-keeping. Clinicians and researchers can obtain data and measurements for a patient’s entire physiological history, allowing them to review it retrospectively. The data could also be used for predictive analysis, allowing them to identify subtle

shifts in a patient’s parameters that could be used to predict stability, the onset of infection or susceptibility to shock, as well as the correlation of precise medication delivery. In the past year, True Process has installed ViNES at research hospitals throughout the country, including: The Hospital for Sick Children in Toronto, Le Bonheur Children’s Hospital in Memphis, and McMaster Children’s Hospital in Hamilton, Ontario. The company also partnered with IBM to have ViNES support its Streams Healthcare Analytics Platform, and ViNES is used to power other analytical data platforms for Etiometry and other companies. As the Internet of Things continues to expand to more areas, including the medical field, True Process leaders believe the company is poised for significant growth. Data analysis and predictive analytics are the future of the health care industry, company leaders say, and they expect ViNES to grow to be the market leader.

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Strategies ETHICS

Do the right thing Show customers their safety is more important than your company’s profits

“It is time to reinvest in quality control procedures, and review your current testing standards.”

48 / BizTimes Milwaukee MAY 29, 2017

“While driving your car, are you concerned that your airbag will work properly? Will it get the advertised miles per gallon and meet Environmental Protection Agency standards? Until a few years ago, the answer to these questions was “Yes.” Today, the answer is, “I am not sure.” In the 1960s, a young Ralph Nader penned “Unsafe at Any Speed.” Little did he know, he was ushering in the era of the product recall. If it wasn’t the Chevrolet Corvair, it was Ford’s Pinto and the exploding gas tank that triggered another recall and lawsuits against members of the automobile industry. These examples raise a basic ethical question: Where is the corporate conscience when these companies permit their products to enter the stream of commerce? Takata Corp. knew their airbags were defective. Volkswagen knew the EPA standards were not being met. And yet, both companies distributed their products to the ultimate consumer. How does a company restore confidence in its brand after a major recall or buyback? The only times you see a Ford Pinto or Chevrolet Corvair are in a car show or auction. These brands were negatively impacted and became case studies in business school curriculum. It is time to reinvest in quality control procedures, and review your current testing standards. Gain an independent opinion by engaging a firm that specializes in quality control and testing. Have the firm review your company’s procedures and make recommendations that would reduce the potential for recalls. Install a process that audits your procedures to ensure they are being followed by your employees at all of your locations. Your suppliers also should be subjected to an audit to ensure your company is being provided with the highest quality components. These steps will help reduce your company’s exposure to recalls and potential claims of negligence, while maintaining its reputation among customers. In the past two years, major car manufacturer Volkswagen has been found to have altered its performance statistics to meet EPA standards. If your airbag was manufactured by Takata, it could be defective and potentially injure or even kill you. What has happened to corporate responsibility

and the desire to take care of the customer? In January, VW announced it would replace its head of integrity and legal affairs, Christine Hohmann-Dennhardt. The company’s decision was “due to differences in their understanding of responsibilities… .” In late October 2016, the U.S. District Court in San Francisco approved a plan for VW to spend $10 billion to buy back these vehicles. VW has promised to buy back the affected car and sport utility models. Already, 400,000 out of 500,000 owners have filed for the buyback. In the case against Takata, the airbag manufacturer, it was determined that 34 million cars were impacted by the recall. In May 2015, Takata admitted the airbags malfunctioned. Earlier, it denied these facts for more than a decade, even as motorists were being killed by exploding airbags. Both VW and Takata were reactive when confronted by the government. Responsible companies need to be proactive and demonstrate to consumers that their safety is placed above the profitability of the company. In today’s world of instant communication, your brand can be immediately damaged by just one Instagram, Facebook or Twitter post that goes viral. Once that happens, your reputation and image are diminished. n

CARY SILVERSTEIN Cary Silverstein, MBA, is a writer, speaker and community volunteer who splits his time between Scottsdale, Arizona and Fox Point. He is the co-author of the book “Overcoming Your NegotiaPhobia,” and can be reached at (414) 403-2942.

FAMILY BUSINESS

Keep the faith Some family businesses report connection between faith and success There is an old saying, “The family that prays together stays together.” But is it true? “The factor that enables family businesses to rise to the top is trust,” Henry Hutcheson, a family business advisor and author of “Dirty Little Secrets of Family Business,” told Forbes in 2014. While this might be true, how is that trust built? Research indicates it is faith; faith in a higher power, greater than oneself. And which specific faith does not seem to matter, as Christian, Jewish and Muslim family business owners all report the same thing. Further, outsiders and customers also report they trust family businesses far more than non-family businesses. Locally, I asked several owners of successful family businesses rooted in faith what makes their business different. Jeff Horwath of Jeff Horwath Family Builders Inc. said, “First, I don’t worry about it financially, since it’s God’s company, not mine. A little effort, plus God, equals endless potential.” So, how does this translate into the company’s work? “We have a small Christian fish symbol in much of our advertising, because we’re happy to have people know that Jesus Christ is important to us,” Horwath said. Another local business owner who is not shy about his faith is Vince Schmidt of Lakeland Supply Inc. As Schmidt puts it, “God, family, Lakeland.” He continues, “God is faithful, and I feel if we conduct ourselves in a manner that honors Him, with some hard work and smart decisions, all will be good.” With the announcement recently that Lakeland Supply will be expanding, it would appear

God is shining down on the company. But, can the God card be played too much? Can the faith issue be talked about so much that it comes across as being fake or forced? Well, the beauty of capitalism is we can take our business elsewhere if we don’t like the message being given. Evidence suggests, however, that more are drawn to a company that proclaims its faith, rather than runs from it. But the real issue might not be in the custom-

“84 percent of people believe that business can make a profit while also delivering value to society.” — Richard Edelman, Edelman

er exchange, but in the internal dynamic of how a family works together. If trust is central to a successful firm, it is much easier to have trust when all members believe in the same thing…in this case, God. Walking into the Lakeland Supply facility, visitors are greeted by small crosses in a bowl in the waiting area, in a place reserved, at most firms, for candy. The cross accompanies a small saying, and the guest I was visiting with that day placed both in his pocket. Message served. No, we did not pray before the meeting, but that would not be foreign as I have seen that done in other businesses. What is clear for both Horwath and Schmidt is they are unapologetic and unashamed about their faith commitment. It is central to their business’ core and that message is passed along to family and others. Lakeland’s mission statement, for example, includes: “leaving all we meet better than they were before.” From Chicago-based public relations firm Edelman comes a barometer that actually demonstrates this further. CEO Richard Edelman, in a talk about leading a Jewish family business, said

“Consider the results of the (2014) Edelman Trust Barometer: 84 percent of people believe that business can make a profit while also delivering value to society.” The word “value” in his quote can be taken two ways, as in providing value to the customer and promoting values that elevate society. So while evidence suggests active and robust faith leads to better business, the reality in the pew, temple or mosque paints a very different picture. While 40 percent of individuals self-report regular faith adherence, further studies indicate the truth is closer to 20 percent. People have a tendency to over-report socially positive activities, such as church attendance, and under-report less socially accepted behaviors, such as drinking – unless in Wisconsin, where this habit is reported quite proudly. But the evidence is clear: While businesses, and especially family businesses, report a connection between faith and business success, society as a whole seems to be turning away from active faith participation. Would it not be ironic if business led a renaissance return to faith at a time when our world needs faith the most? n

DAVID BORST David Borst, Ed.D., is executive director and chief operating officer of the Family Business Legacy Institute, a regional resource hub for family business. He can be reached at davidb@fbli-usa.com biztimes.com / 49

Strategies LEADERSHIP

Grow your managers Six steps to develop leaders Creating a leadership development process isn’t so hard if you know what to do. That’s why so few companies don’t have a legitimate one, even though they say they do. “Yes, we send people to the first-line supervisor course at the technical college.” But the CEO is overworked just keeping the company going. “Yes, I know I should have a good process, but I don’t know how and don’t have the time.”

HERE’S WHAT TO DO: Step 1. Make a list of about a half dozen of your direct reports. Next to their names, write the names of their backups, the people who will be ready to step into their jobs within two years. See a lot of blanks? That should worry you. Having a leadership development process is a requirement for two reasons, no matter how small your organization. First, good people don’t want to work for a company that isn’t developing their expertise and giving them more responsibility. Second, the ability to grow is directly related to the degree of advanced leadership skills in your organization. Step 2. For each position, develop a list of leadership competencies; those that are unique to success in that position. Start with your senior leaders. They already have competencies like problem-solving, conflict resolution, influencing others and project management – skills that were required when they were first-time, first-line supervisors. And they’re already good at such middle management competencies as managing and measuring work, setting 50 / BizTimes Milwaukee MAY 29, 2017

priorities, planning, hiring and staffing, getting results and building teams. Senior leaders need to be able to deal with ambiguity; develop and motivate with purpose and vision; stimulate innovation; possess political savvy; understand process development; manage change; and more. You need a list of competencies developed by experts. Go to Amazon and order “For Your Improvement: A Guide for Development and Coaching,” by Michael Lombardo and Robert Eichinger. It includes more than 60 competencies. Each explains why it’s important and how to recognize when it’s done well or overused, and includes a long list of things a leader can do to improve. Develop a list of eight to 10 competencies for each position, including yours. Step 3. On a scale of 1 to 10, assess the leader on each competency. Step 4. Review the competencies and your assessment with the leader, and suggest your own ideas and those from the book on how the leader can improve. Step 5. Both of you should choose three or four initiatives the leader will work on this year. These are a key part of the leader’s annual development plan, leading to the year-end “development review” that replaces the performance review. Step 6: Each leader must have a coach and be a coach. Coaching is not mentoring. Mentors offer guidance from their own experience and don’t necessarily help their protégés think better. That’s what coaching does. It’s the process of understanding what leaders want to accomplish, asking questions that help them understand what is and isn’t working, and helping them decide what to do to improve. CEOs of large companies have organizational development experts who are certified in helping to develop leaders. Smaller companies don’t have that luxury and can benefit from this simple-to-use, six-step system. It requires a lot of your attention. You’ll learn new traits around competencies and coaching, and it will help you fulfill one of the most important jobs of a CEO: developing leaders.

QUOTES ON COACHING Here’s what leadership experts say about coaching: “Coaching done well may be the most effective intervention designed for human performance.” – Atul Gawande, author, surgeon and public health researcher. “It’s helping them to learn, rather than teaching them.” – Tim Gallwey, author. “Very few people achieve lasting, positive change without ongoing follow-up.” – Marshall Goldsmith, author. “All coaching is, is taking a person where he can’t take himself.” – former University of Colorado football coach Bill McCartney. If you’re looking for another resource, buy the book “Developing World Class Leaders: The Ultimate Guide to Leadership Development” by Rick Tiemann, an executive coach and expert in assessment tools. For two decades, he has helped companies develop these processes. We might not need world-class leaders. But we need effective leaders who are always striving to improve in our own little worlds. n

PHIL HAUCK Phil Hauck is chair of three TEC CEO Groups in the Green Bay/Fox Valley area. Contact him at PHauck1@gmail.com.

How to manage business credit

TIPET S HE

anaging the books is an important part of running a business. With attention to a few details, an owner can ensure the business’ credit is in excellent shape. The U.S. Small Business Administration recommends a few specific strategies:

According to Dun & Bradstreet, credit scores can fall sharply

CREATE A BUSINESS CREDIT FILE Dun & Bradstreet should have a record of a business’ credit file. It can be reviewed or established at iupdate.dnb.com. Review and update the file periodically so lenders, vendors and suppliers have all the information needed to make an informed decision. Key points are revenue, location, headcount and any lawsuits. ESTABLISH A BUSINESS CREDIT HISTORY New businesses may be funded with personal credit, but they should establish business credit as quickly as possible to build a history. This can include operating a commercial bank account and attributing expenses to the business. KEEP CURRENT ON BILLS A key factor in obtaining a positive credit rating is consistently paying

bills when they are due. Entrepreneurs should be cautious about overleveraging the company or using every last bit of credit. A credit rating is determined through many factors, though, including industry and employee count. STAY ON TOP OF YOUR CREDIT FILE According to Dun & Bradstreet, credit scores can fall sharply, with about one-third of businesses experiencing this over just a threemonth span. It’s best to know your credit score has changed before a customer or lender does. MONITOR CUSTOMERS’ AND VENDORS’ CREDIT While a company should be concerned about its own credit, it should also consider how much credit to extend to its customers and vendors. D&B can also be used to view other companies’ credit files. n

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Strategies A BRIEF CASE

How do I create a more innovative or entrepreneurial culture? Randy Baker, President and CEO, Actuant Corp. “There is no magic bullet for creating an innovative spirit in a company, but I believe there are three basic elements present in the most successfully innovative organizations. “The first element is an atmosphere of continuous improvement, where everything we do is on a constant course to be better. Simply put, ‘knowing we are never perfect.’ The improvement spirit and employees who demonstrate this behavior must be rewarded. It includes everything from daily processes to capturing market share, since an organization that is consistently seen as ‘best in class’ becomes very proud of its team’s success. “The second element present is a customer-centric culture. We strive to constantly look for a better solution to help customers improve their performance. Henry Ford once said, ‘If I asked my customers what they wanted, they would have asked for a faster horse.’ This is a great example of seeing beyond the current market environment and having an organization willing to take on risk. “Finally, the organization must be all-in, meaning personally and emotionally invested in the company’s mission, and share in the results of its success. For leaders, it is imperative that they live these cultural values and be willing to invest in the right people. When you put all of these factors together, you have the recipe for an innovative, growing and successful company.”

52 / BizTimes Milwaukee MAY 29, 2017

Tim Sullivan, CEO REV Group Inc. “Creating an innovative and entrepreneurial culture, although related, are actually somewhat mutually exclusive concepts that, if managed properly, achieve exemplary results. “First and foremost, you must clearly state that being the innovator in the industry you serve is part of your purpose. Customers and employees must know that this is not only a key strategy, but it is what is expected. Everyone must know that achieving a ‘me, too’ solution is unacceptable. The drive to differentiate is in the heart and soul of the company. We believe that innovation is doing everything we do every day different than everybody else, whether it be with products or processes. “An entrepreneurial culture is driven by the right corporate structure, which will not only drive innovation, but it will also move the company forward at a very fast pace. At REV, we have a matrix management structure which drives decision-making throughout the company by challenging people to make informed decisions. We are a $2 billion revenue company and we have approximately 200 people that make critical decisions daily. These individuals have five mentors that assist them with their thought processes, but they do not make the decisions. “Stating that innovation is of paramount importance, and expanding decision-making throughout the organization, drives innovation through an entrepreneurial culture that is rewarded monetarily and publicly celebrated throughout the entire company and the industries we serve.”

Jeffery Yabuki, President and CEO Fiserv Inc. “Culture is a complicated idea. Remodeling a culture is far more difficult than building from scratch, yet the need to change is paramount in today’s world. For Fiserv, our mission is centered on enabling success for our clients – and helping them best serve their customers. That notion anchors our efforts around innovation and empowerment. The world is moving fast and we need to move with it. “Innovation is an important part of what we do. We introduced a program last year called FIN (Fiserv Innovation Network) to connect our focus on innovation with the great work happening across our 23,000 associates. Over time, FIN will serve as a wrapper for the innovations we create, manage, drive and promote every day. It highlights these activities and allows us to tap into our collective creativity to support the best ideas – and fail fast when ideas may not fit the market opportunities. “It is also important to define innovation broadly so all can participate. Innovation can be a new idea, process or technology. Creative ideas can, and will, come from everywhere within an organization. By encouraging our associates to see, understand and contribute to these efforts, confidence will be built. And organizations can do magical things when they believe. “Be patient, persistent and know that over time the change will come. Anything worth having is worth working for – and the right culture matters more than anything else.” n

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BizConnections AROUND TOWN BizTimes Mediaâ&#x20AC;&#x2122;s 2017 M&A Forum at the Milwaukee Marriott Downtown hotel.

ANN HANNA of Schenck SC and SCOTT HAPP of Optimal Blue.

JOE BROWN of Gordon Aluminum and BILL BURNETT of Manufacturing PAR Excellence.

TAMMY HALFMANN and KARIN GALE, both of Schenck.

SCOTT SCHUMACHER of Wipfli LLP and ANDREW NARRAI of Reinhart Boerner Van Deuren S.C.

JON TERAOKA of W.I.S. Logistics and ANTHONY LEACH of BMO Harris Bank.

MICHAEL SCHROEDER of Schenck and KEVIN KRUG of Rite-Hite.

ERIC DECKER of WMEP and DOUG MARCONNET of Bridgewood Advisors Inc.

ANDREA WOLF of Bank Mutual Corp. moderates a panel discussion on life after the sale.

AJITA RAJENDRA of A.O. Smith Corp. gave the keynote address. Photos by Paul Gaertner

Two-Fifty Office Tower - Grand Reopening 10. The grand reopening of the TWO-FIFTY OFFICE TOWER in downtown Milwaukee was held April 27. (Photo by Martin Moore, Jr. )

11. MARNIE NOEL, vice president of JLL. (Photo by Martin Moore, Jr.)

12. CHAD GRISWOLD and MATT RINKA of Rinka Chung Architecture and ROCKY MARCOUX, commissioner for the Department of City Development. (Photo by Corrinne Hess)

13. More than 250 people attended the event. (Photo by Martin Moore, Jr.)

14 54 / BizTimes Milwaukee MAY 29, 2017

14. NED PURTELL of RFP Commercial and DAN JESSUP of JLL. (Photo by Corrinne Hess)

PERSONNEL FILE BANKING & FINANCE

Port Washington State Bank, Port Washington

and private organizations. He has extensive experience in strategic planning, accounting, budgeting, contract negotiations, mergers and acquisitions.

HEALTH CARE

The Roberts Group, Waukesha Dykstra

Schumacher

Port Washington State Bank has promoted Joel Dykstra to the position of vice president-senior business lender. In Gold addition, the bank hired John P. Schumacher and Brian C. Gold to the positions of vice president-business banking.

BUILDING & CONSTRUCTION

McGuire Contractors Inc., Sussex Mary Krist has been promoted to the position of operations manager at McGuire Contractors Inc., Sussex.

EDUCATION

Cardinal Stritch University, Milwaukee Cardinal Stritch University, Milwaukee, has named James Loftus vice president for undergraduate Mantilla enrollment and Tonya Mantilla vice president for university advancement.

HEALTH CARE

Medical College of Wisconsin, Wauwatosa Earlier this year, Barclay Ferguson was named chief financial officer for Wauwatosa-based Medical College of Wisconsin. Ferguson has more than 20 years of experience in growing enterprise value for large public

Julia Hansch was recently promoted to executive vice president at The Roberts Group, Waukesha. She will continue to guide and lead the account services team, and will be heading up the new business team, along with a variety of other agency initiatives and campaigns.

INSURANCE

HNI Risk Services, New Berlin Nicole Kimminau joined the New Berlin-based HNI Risk Services benefits team as an account associate. She will be responsible for the day-to-day processing of new business and renewal business.

LEGAL

NONPROFIT & VOLUNTEER

McNally Peterson S.C., Milwaukee

Lutheran Home and Harwood Place, Wauwatosa

Robert (Rock) Theine Pledl has joined McNally Peterson S.C., Milwaukee. He has represented persons with disabilities for more than 30 years and will continue his practice in all aspects of disability and civil rights law and special needs planning, as well as federal and state court litigation.

LEGAL

PROFESSIONAL SERVICES

DeWitt Ross & Stevens S.C., Brookfield

Hastings Air Energy Control, New Berlin

The Wisconsinbased law firm of DeWitt Ross & Stevens S.C. and its Minneapolis affiliate, DeWitt Mackall Crounse & Moore S.C., recently announced attorney Shannon Allen has joined the DeWitt Ross & Stevens Brookfield Office.

John Lesch has joined Hastings Air Energy Control, New Berlin, as a service technician. Lesch has a broad technical background in electrical safety, HVAC and industrial machine setup, service and repair. At Hastings, he will focus on installation, service and preventative maintenance for industrial air cleaning and energy management equipment.

MARKETING

Trivera Interactive, Menomonee Falls

PROFESSIONAL SERVICES

INSURANCE

Balestrieri Environmental, Elkhorn

Robertson Ryan & Associates, Milwaukee Ed Feriance has joined Robertson Ryan & Associates, Milwaukee. Feriance is a licensed insurance agent and specializes in tow truck operations in California and Nevada, in addition to other areas. He was most recently an agent with a large California-based insurance broker. Over the past five years, Feriance has developed a sizable client group of tow truck operators.

Submit new hire and promotion announcements to: www.biztimes.com/personnel

Sonja Williams will serve on the board of directorsâ&#x20AC;&#x2122; human resources committee at Wauwatosa-based Lutheran Home and Harwood Place. She has 20 years of talent management and organizational development experience.

Seenchal

Truntz

Trivera Interactive, Menomonee Falls, has hired Stephanie Seenchal as a new web designer and front-end developer and Chelsea Truntz as a new account manager.

Brunner

Ruenz

Riley

Conrad

MARKETING

EPIC Creative, West Bend West Bend-based EPIC Creative has promoted Joe Schultz to project manager. He was previously an account coordinator. He will work on the Schiller brands (Ryan, Steiner & BobCat), working closely with Jim Becker and Jessica Gumieny.

Balestrieri Environmental, Elkhorn, recently hired Breanna Brunner as a project coordinator and promoted Michael Ruenz to project manager, Emily Riley to project team coordinator and Cody Conrad to accounting technician.

biztimes.com / 55

BizConnections NONPROFIT NEWS

news OREGON, WISCONSIN-BASED DEVELOPER GORMAN & CO. is planning to build up to 36 tiny homes near East Capitol Drive and North Humboldt Boulevard to serve teens aging out of the Milwaukee County foster care system. Gorman is working in partnership with Pathfinders Milwaukee Inc. and the state Department of Children and Families on the project. The company also has come to a conceptual agreement with the Milwaukee Area Technical College board of directors to lease an underutilized portion of land owned by MATC at 4200 N. Humboldt Blvd. as a site for the tiny homes, which will provide

temporary, transitional housing for young adults ages 18 to 25, who are homeless or at risk of being homeless, said MATC president Vicki Martin. Each of the homes will be approximately 500 square feet. “The MATC board of directors and administration recognize the need to help this population and sees this as an opportunity for community outreach in keeping with the college’s mission,” Martin said. “The MATC board of directors will make a final decision on approving a ground lease agreement when project plans have been finalized.” -Corrinne Hess

c alendar Neu-Life Community Development will host a fundraiser on Thursday, June 1, from 5:30 to 7:30 p.m. at Rock Bottom Brewery, 740 N. Plankinton Ave. in Milwaukee. Drink specials will be offered and proceeds will benefit Neu-Life’s youth programs. For more information, visit neu-life.org. The National Parkinson Foundation will host its first annual Moving Day Milwaukee on Saturday, June 10, at 9 a.m. at Hart Park, 7201 W. State St. in Wauwatosa. The 2-mile walk starts at 10:30 a.m. on the Oak Leaf Trail. The event also will feature entertainment, children’s activities and a Movement Pavilion with Parkinson’s-friendly exercise demonstrations. Registration is free and fundraising for the National Parkinson Foundation is encouraged. For more information or to register, visit www.MovingDayMilwaukee.org. Brews for Autism is hosting a homebrew competition to benefit Autism Solutions Pieces on Saturday, June 10, at 4 p.m. at Mulligans Irish Pub, 8923 S. 27th St. in Franklin. The public is invited to attend to sample and vote for the winning beer crafted by local homebrewers. For more information, visit www.brewsforautism.org.

D O N AT I O N R O U N D U P Marquette University Law School will establish the Lubar Center for Public Policy Research and Civic Education following a $5.5 million gift from Sheldon and Marianne Lubar | The Vince Lombardi Cancer Foundation Board is giving a $540,967 gift to the Aurora Health Care Foundation to support new technology for cancer treatments | The Northwestern Mutual Life Foundation announced more than $700,000 in grants that will support nine nonprofits providing cultural opportunities | Mukwonagobased Citizens Bank this year will donate a total of $125,000 to various efforts through corporate donations, community support and sponsorships, and individual giveaways

56 / BizTimes Milwaukee MAY 29, 2017

nonprofit

SPOTLIGHT

PEARLS FOR TEEN GIRLS INC. 1805 N. Martin Luther King, Jr. Drive, Milwaukee 414.265.7555 | www.pearlsforteengirls.com

facebook.com/pearlsforteengirls/ | YouTube: PEARLS4TeenGirls

YEAR FOUNDED: 1993 MISSION STATEMENT: PEARLS for Teen Girls is improving quality of life and strengthening our community one girl at a time by empowering young women with self-development tools, guidance and support to strive for better, brighter futures by living out the PEARLS values: personal responsibility, empathy, awareness, respect, leadership and support. PRIMARY FOCUS: PEARLS is a unique leadership development program serving girls in middle school through high school, and beyond, in Milwaukee. OTHER FOCUSES: College and career readiness. EMPLOYEES AT THIS LOCATION: 31 KEY DONORS: United Way of Greater Milwaukee & Waukesha County EXECUTIVE LEADERSHIP: Gerry Howze, executive director Christy Miller, director of development Mary Robyn Peotter, director of finance and operations BOARD OF DIRECTORS: Laura Arnow, Arnow & Associates Meg Brzyski Nelson, Children’s Hospital of Wisconsin Foundation

Deirdra Copeland, BMO Harris Bank Denise Greathouse, Michael Best & Friedrich LLP Michelle D. Green, Johnson Controls International plc Tawanna Jackson, MillerCoors LLC Kadie Jelenchick, Foley & Lardner LLP Luke Kasten, PNC Wealth Management Mark Ketterhagen, Milwaukee College Prep-Lloyd Street Christie Krugler Lisa Long, PwC LLP Ninveh J. Neuman, Rockwell Automation Inc. Tori Termaat, Harley-Davidson Motor Co. IS YOUR ORGANIZATION ACTIVELY SEEKING BOARD MEMBERS FOR THE UPCOMING TERM? Yes. WHAT ROLES ARE YOU LOOKING TO FILL? Open. WAYS THE BUSINESS COMMUNITY CAN HELP YOUR NONPROFIT: Employee resource group volunteering, foundation grant support, hosting events. KEY FUNDRAISING EVENTS: Women Inspired to Lead (First Thursday of every March) n

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PHILANTHR

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ITIES

“ WE RISE BY L I F T I N G OT HERS.” — ROBERT INGERSOLL

Now accepting reservations! BOYS & GIRLS CLUBS OF GREATER MILWAUKEE

WHO’SWATCHING WATCHINGOUR OURKIDS KIDSAFTER AFTERSCHOOL? SCHOOL? WHO’S

2017 EDITION MISSION The mission of Boys & Girls Clubs of Greater Milwaukee is to inspire and empower all young people, especially those who need us most, to realize their full potential as productive, responsible and caring citizens.

1558 N. 6th Street Milwaukee, WI 53212 (414) 267-8100

boysgirlsclubs.org facebook.com/bgcmilwaukee @bgcmilwaukee

750 $26,808,482 1887

TOTAL EMPLOYEES: ANNUAL REVENUE:

YEAR ESTABLISHED:

SERVICE AREA Boys & Girls Clubs of Greater Milwaukee has 44 locations in the area with more than 43,000 members and serves more than 5,000 kids every day.

FUNDING SOURCES

Publication Date: November 13, 2017

 Contributions ..........................................................44%  Grants ........................................................................42%  United Way ..................................................................5%  Investment Distribution .........................................5%  Service & Rental Fees ............................................4%

EXECUTIVE LEADERSHIP

FUNDRAISING/EVENTS

Our vision is to build the community’s social and economic fabric by ensuring the academic and career success of every child that walks through our doors. With the help of community partners, volunteers, generous donors and committed staff, Boys & Girls Clubs of Greater Milwaukee provides after-school and summer programming to more than 43,000 children and teens at 44 locations. Within the safety of the Clubs, children and teens receive academic support, free meals, characterbuilding programs and access to role models. Every child deserves a future of unlimited possibilities.

Boys & Girls Clubs of Greater Milwaukee hosts special events throughout the year to engage the public in our mission and raise funds to support our programming. Events include but aren’t limited to our Annual MVP Gala in May, Celebrating G.I.R.L.S in November, YP Prom, and Lumberjack Brunch at Camp Whitcomb/Mason. All events have ticket and sponsorship opportunities, for more information please visit our website.

VOLUNTEER OPPORTUNITIES

GIVING OPPORTUNITIES

The Clubs have a role for skilled and committed volunteers. Our needs are ongoing, and we are always looking to expand our volunteer roster. We offer one-time and recurring opportunities with projects ranging from Club beautification to literacy activities with Club youth. If you are interested in volunteering or creating a one-time opportunity for your company, please complete the Volunteer Inquiry Form on our website or contact our Volunteer Coordinator at (414) 267-8111.

Making a financial gift, attending a special event, volunteering and including the Clubs in estate plans are just a few of the ways individuals can help give Club members the resources they need to work toward productive futures. Your investment will create a ripple effect in the community as today’s young people become tomorrow’s leaders.

BOARD OF DIRECTORS Christopher S. Abele Barry K. Allen Bevan K. Baker James T. Barry, III

Vincent Lyles President & CEO

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Susan Ela Board Chair

★ DENOTES EXECUTIVE LEADERSHIP

Jack A. Enea

Jerome M. Janzer

Richard R. Pieper, Sr.

John W. Splude

Peter Feigin

Jeffrey A. Joerres

James R. Popp

Mary Ellen Stanek

Edward A. Flynn

Craig Jorgensen

Robert B. Pyles

Mara Swan

William Fitzhugh Fox ★

Tracey Joubert

David F. Radtke

Alfonzo Thurman

David A. Baumgarten

Alexander P. Fraser

Sarah Wright Kimball

Kristine A. Rappé

Harris Turer

David L. Bechthold ★

John Galanis

Michael Lappin

Bethany M. Rodenhuis

John Utz

Thomas H. Bentley, III

Nan Gardetto

Steven L. Laughlin

Mark Sabljak

Gordon J. Weber

Linda Benfield

David Gay

Keith R. Mardak

Richard C. Schlesinger

Gregory Wesley

William R. Bertha

Charles B. Groeschell

Maureen A. McGinnity

Allan H. Selig

Arthur W. Wigchers

Thomas M. Bolger

Bronson J. Haase

Daniel F. McKeithan, Jr.

John S. Shiely

James B. Wigdale

Elizabeth Brenner

William C. Hansen

Robert L. Mikulay ★

Thelma A. Sias

Brian Cadwallader

Thomas J. Hauske, Jr.

Brian Morello ★

Patrick Sinks

Madonna Williams Scott Wrobbel ★

Daniel Sinykin

James L. Ziemer

Guy W. Smith

Anne Zizzo

G. Spencer Coggs

Katherine Hust

Wayne C. Oldenburg

Judson Snyder

Diane Zore

Russell M. Darrow, Jr.

Charles V. James

Guy A. Osborn

Thomas L. Spero

Tonit Calaway

Jack Herbert

Cory L. Nettles

Tina M. Chang

Renée Herzing

Keith D. Nosbusch

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BizConnections VOLUME 23, NUMBER 4 | MAY 29, 2017

GLANCE AT YESTERYEAR

126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120 PHONE: 414-277-8181 FAX: 414-277-8191 WEBSITE: www.biztimes.com CIRCULATION: 414-336-7100 | circulation@biztimes.com ADVERTISING: 414-336-7112 | ads@biztimes.com EDITORIAL: 414-336-7120 | andrew.weiland@biztimes.com REPRINTS: 414-336-7128 | reprints@biztimes.com PUBLISHER / OWNER Dan Meyer dan.meyer@biztimes.com DIRECTOR OF OPERATIONS Mary Ernst mary.ernst@biztimes.com

EDITORIAL EDITOR Andrew Weiland andrew.weiland@biztimes.com MANAGING EDITOR Molly Dill molly.dill@biztimes.com REPORTER Lauren Anderson lauren.anderson@biztimes.com REPORTER Corrinne Hess corri.hess@biztimes.com REPORTER Arthur Thomas arthur.thomas@biztimes.com INTERN REPORTER Maredithe Meyer maredithe.meyer@biztimes.com

Federal courthouse This photo, taken by James Conklin circa 1936, shows downtown Milwaukee looking east. The U.S. Federal Building and Courthouse can be seen, with its distinctive pointed granite tower, in the center of the photo. Constructed from 1892-1899 in the Romanesque Revival style, the building at 515-519 E. Wisconsin Ave. is listed on the National Register of Historic Places. Today, it houses the U.S. District Court and Bankruptcy Court for the Eastern District of Wisconsin. This photo is from the Milwaukee Public Museum’s Photo Archives collection. Additional images can be viewed online at www.mpm.edu.

End the ‘dark store’ property tax dodge LET’S SAY YOU ARE A real estate investor. You are planning to purchase a commercial building. You are considering two. They are about the same in size, physical condition and architecture, and are in similar locations. The biggest difference between the two buildings is one has been vacant for a couple of years, while the other is fully occupied by a tenant with 10 years left on the lease. Which building would you be willing to pay more for? Which is more valuable in the marketplace? The answer is obvious. The building that is occupied by a tenant is clearly more valuable than the similar but vacant building. However, for the purposes of property taxes, retail chains with stores in Wisconsin have been arguing that their buildings should be assessed as if they were vacant. Those retailers say the value of the property should be based only on the bricks, mortar and the dirt is sits on, and not on whether or not there is a tenant; nevermind the fact that having a tenant in place 58 / BizTimes Milwaukee MAY 29, 2017

clearly makes the property more valuable. Since a 2008 Wisconsin Supreme Court case won by Walgreen Co., chain retailers such as Walgreen, Menards Inc. and Target Corp. have used this so-called “dark store argument” to successfully challenge their property assessments, getting those assessments, and therefore their property taxes, lowered. Guess what happens when retailers are able to make this argument and have their properties assessed lower, at a below-market value, as if they were vacant? The property tax burden is shifted onto everybody else, including homeowners. Some municipalities have cried foul about this and fortunately, some in Madison are listening. Bills sponsored by state Rep. Rob Brooks (R-Saukville), Sen. Roger Roth (R-Appleton) and Sen. Duey Stroebel (R-Cedarburg) would end the “dark store” assessment argument and require assessments to be done based on market value, which is the way it should be. But Wisconsin Manufacturers & Commerce, which has considerable influence, is taking the side of the chain retailers and opposing the legislation. WMC wants to support business, which is great. But in this instance it is wrongheadedly supporting a practice that unfairly

SALES & MARKETING DIRECTOR OF SALES Linda Crawford linda.crawford@biztimes.com ACCOUNT EXECUTIVE Molly Lawrence molly.lawrence@biztimes.com ACCOUNT EXECUTIVE David Pinkus david.pinkus@biztimes.com ACCOUNT EXECUTIVE Maggie Pinnt maggie.pinnt@biztimes.com ACCOUNT EXECUTIVE Christie Ubl christie.ubl@biztimes.com ACCOUNT EXECUTIVE Lena Tomaszek lena.tomaszek@biztimes.com SALES INTER Salimah Muhammad salesintern@biztimes.com

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shifts the property tax burden. Property taxes are already too high for homeowners in Wisconsin. WMC says some assessors are overly aggressive in seeking higher assessments for commercial property. Assessments should obviously be done fairly, and property owners have every right to challenge them. But it can’t be ignored that an occupied commercial property has more value than a vacant one, and the assessment ought to reflect that. I know brick-and-mortar retailers are struggling to compete in the increasingly digital retail environment, but they still need to pay their fair share of property taxes. They are trying to take advantage of the “dark store argument” to get a property tax break. End the “dark store argument” and assess all property in the state fairly, based on what it is worth in the marketplace. n

ANDREW WEILAND EDITOR

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5 MINUTES WITH…

DR. NICK TURKAL President and CEO, Aurora Health Care Inc.

AURORA HEALTH CARE is working on plans for three new facilities in southeastern Wisconsin, including: a $324 million hospital in Kohler (to replace the Aurora Sheboygan Memorial Medical Center); a $130 million medical office building and outpatient care center in Kenosha; and a $55 million ambulatory surgery center and medical office building at the 84South development in Greenfield. In a recent conversation with BizTimes Milwaukee editor Andrew Weiland, Turkal explained the rationale behind the projects.

KOHLER HOSPITAL “(Sheboygan Memorial Medical Center is) a building that has reached the end of its useful life. It was built about 100 years ago. As we now look at how we design operating rooms, how we design privacy for patients around entry and transportation within the hospital setting, we are in a very different place than we were 100 years ago, or even 15 years ago. As we looked to the future, it was really clear we needed a new and efficient hospital.”

KENOSHA “We have a hospital in Kenosha that is very busy and at capacity. That was part of the reason for our cancer and outpatient center that we constructed a couple of years ago (in Kenosha). That is also now at capacity. What we are creating now in Kenosha is a sizable project near I-94 that includes general surgery, orthopedics, urology, pediatrics. If you look at what has happened since we built the hospital, Kenosha has undergone an explosion of businesses and population. But then in addition to that, we have physicians and offices south of there just into northern Illinois, and we draw quite a number of people from Illinois to our Kenosha facilities. We keep outgrowing the facilities we have. This is based on patient demand.”

GREENFIELD “We have such a large presence on the south side with Aurora St. Luke’s. We have more demand for our services than we have space for. We’re trying to make access easier for our patients and our providers. This allows another access point. (The Greenfield facility is) going to include a surgery center, so we will be doing general surgery, things like orthopedics, there. So much of orthopedics has moved to an outpatient setting. We will have a large pediatric presence there, pain management, things like that. We need more space for it. (The facility will) enable us to do more of what we want to do at St. Luke’s, the very highest level of surgery and acute care. The things that are more routine, or outpatient based, we would like to get onto campuses that are very easy for patients to get in and out of.” n biztimes.com / 59