BizTimes Milwaukee | February 4, 2019

plus WAVE OF POKÉ RESTAURANTS WASHES OVER MILWAUKEE 11 THE INTERVIEW: DICK PALMERSHEIM OF PERLICK CORP. 13 WHAT IF THERE’S NO ONE TO TAKE OVER THE FAMILY BUSINESS? 28

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HOW TO HANDLE KIN CONFLICT IN BUSINESS

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BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 24, Number 20, February 4, 2019 – February 17, 2019. BizTimes Milwaukee is published bi-weekly, except monthly in January, July and 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 2018 by BizTimes Media LLC. All rights reserved.

Contents

4 Leading Edge 4 NOW

BY THE NUMBERS 5 INNOVATIONS 6 JUMP START 7 BIZ LUNCH 8 STYLE 9 PUBLIC RECORD 10 BIZ POLL COFFEE BREAK

11 Biz News 11 A WAVE OF POKÉ WASHES OVER MILWAUKEE. 13 THE INTERVIEW

14 Real Estate 31 Strategies HOW TO HANDLE KIN CONFLICT IN BUSINESS

Special Report

COVER STORY

20

20 Wealth Management & Estate Planning In addition to the cover story, coverage includes insights into planning the succession of a business to the next generation.

31 FAMILY BUSINESS David Borst 32 INNOVATION Dan Steininger 33 A BRIEF CASE

35 Biz Connections 35 PAY IT FORWARD 36 PERSONNEL FILE 37 AROUND TOWN 38 GLANCE AT YESTERYEAR COMMENTARY 39 THE LAST WORD

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BIZTIMES DAILY – The day’s most significant news → biztimes.com/subscribe

NOW

Miller Park will get a new name in 2021

By BizTimes staff Known as Miller Park since it opened in 2001, the home of the Milwaukee Brewers will get a new name in 2021.

The Brewers announced recently that the new naming rights sponsor for the stadium will be Madison-based American Family Insurance. The 15-year deal will run through 2036. The new

name for the stadium is yet to be determined. The agreement also calls for the Brewers and American Family to collaboratively fund community projects, likely in the area of education, and one focused specifically on refurbishing youth and high school baseball fields.

The $40 million Brewers stadium naming rights deal with

BY THE NUMBERS The Wisconsin Department of Transportation stripped Milwaukee auto wholesaler Cuzco Auto Mart of its license after an investigation determined it shaved more than

miles off the odometers of 136 vehicles.

4 / BizTimes Milwaukee FEBRUARY 4, 2019

MillerCoors LLC expires after the 2020 season.

Financial terms of the new deal with American Family were not disclosed. A statement from Chicago-based MillerCoors said American Family made the Brewers “an incredibly rich offer for the future naming rights of Miller Park.”

MillerCoors products will continue to be served throughout the stadium even after its name is removed from the building.

“We appreciate the historical commitment of MillerCoors and Miller Brewing Co. to Milwaukee, our city, and to our team, and while the naming rights will pass in 2021, we know our relationship with MillerCoors is strong,” said Brewers chief operating officer Rick Schlesinger. “We look forward to the next two years with MillerCoors and we look forward to strengthening our relationship for years to come.”

With the end of the MillerCoors sponsorship agreement nearing, the Brewers approached American Family last summer to discuss the possibility of being the naming rights sponsor for the ballpark, American Family chairman and chief executive officer Jack Salzwedel said.

The stadium naming rights deal is part of American Family Insurance’s plans to dramatically expand its presence in Milwau-

kee, Salzwedel said. In 2017, the company became the title sponsor for Summerfest and the naming rights sponsor for the main stage amphitheater at Henry Maier Festival Park.

The company also plans to have an office building in downtown Milwaukee in two to three years, Salzwedel said. Multiple sites are being considered for the firm’s Milwaukee office, which could be in a new or existing building, he said. “(The naming rights for the Brewers’ ballpark) fits with an overall Milwaukee strategy that we have been working on for probably about a year,” Salzwedel said.

“It involves building a fairly large building down in the core of the city, and a strategy that includes more jobs, and jobs in the software engineering and data science area.

We’ve been working very closely with the mayor to try and look at different sites and opportunities for us in the City of Milwaukee. We announced to our leadership group… that we are committed to building a building, or having a building, in downtown Milwaukee…This (Brewers stadium naming rights deal) is just part of an overall strategy that includes a building, includes employees, jobs, it includes the (ballpark) naming rights, it includes (the) Summerfest (sponsorship).

Our commitment to Milwaukee has never been stronger.” n

INN Johnson Controls launches highend smart thermostat

Johnson Controls International plc Glendale

INNOVATION: GLAS smart thermostat FOUNDER: Warren Johnson FOUNDED: 1885 johnsoncontrols.com

VAT I TO SAY JOHNSON CONTROLS International plc has a long history with thermostats is a bit of an understatement. Warren Johnson, the company’s founder, patented the “electric tele-thermoscope” in 1883. The device became known as the electric room thermostat and helped launch an industry.

So as smart devices become more ubiquitous in everyday life, it only makes sense that Johnson Controls would have an offering in the growing smart thermostat market.

“It’s our heritage and our birthmark,” said Don Albinger, who recently retired as vice president and general manager of global controls for JCI. “We believe we had a rightful place and a birthright.”

The GLAS smart thermostat that JCI unveiled in early 2018 uses Windows 10 IoT Core, Microsoft Azure and the Qualcomm Snapdragon 410E platform. Albinger said the level of processing power included in the product had not previously been put in a thermostat.

“The technology in there is like a cell phone,” he said Johnson Controls began shipping GLAS units in late August.

At $319, it is more expensive than some of the other models available from competitors, many of which range from $150 to $250.

“When you look at the embedded technology of all the sensors that we have … there’s value there,” Albinger said.

In addition to temperature, GLAS has sensors for total volatile organic compounds and equivalent carbon dioxide, allowing it to provide real-time indoor air quality reporting. It also provides outdoor air quality information, including allergens, UV index and air pollution.

And the device is designed with Microsoft Cortana voice assistant and can work with Amazon Al-

NS

exa and Google Assistant.

Getting to the point at which the company could launch a premium product that goes beyond a wall thermostat took some time.

Albinger said about two years elapsed from the initial ideation for GLAS to final product develThe GLAS thermostat introduced by Johnson Controls. opment. He called that a reasonably fast timeline, but also acknowledged Milwaukee-area operations, while the challenges of product develalso drawing on the company’s opment in a crowded space with global design centers. rapidly advancing technology.

“It wasn’t just a bunch of therOne of the key initial decisions mostat engineers figuring this out, was deciding on an operating sysbelieve me,” he said. tem for the device. JCI went with Johnson’s original device used Windows 10 IoT Core in part bean electrical circuit with one end cause of existing relationships the in a small pool of mercury. As the company has with Microsoft, along temperature rose and fell, the wire with the system’s voice recognition moved in and out of the mercury, and cybersecurity capabilities. controlling the electrical circuit “We had to make that foundaand the room damper. tional decision,” Albinger said.

Translucent screens, connected GLAS, however, is also capable sensors and voice controls are a of working with other smart home long way from that initial invention. systems, like Google Assistant “It is truly the most modern and Alexa. Albinger said those thermostat or wall device in the offerings were important to avoid world,” Albinger said. n the product being segmented into a smaller market.

“It’s a big world out there from a connectivity perspective,” he said. “We always knew that we had to connect into the ecosystem.”

In addition to its features, JCI’s consumer research suggested appearance and aesthetics were areas where GLAS could be differentiated from competitor products. That led to softer lines and the creation of a translucent OLED ARTHUR THOMAS screen that helps the device blend Reporter into walls, whether they are brick, P / 414-336-7123 painted or covered in wallpaper.

E / arthur.thomas@biztimes.com Albinger said the development T / @arthur8823 of GLAS was mostly driven by JCI’s biztimes.com / 5

Leading Edge

BIZTIMES MEDIA – Like us

SOURCINGUSA INC. LOCATION: Milwaukee FOUNDERS: Chris Hoppe, Mark Cors, Paul Sanchez FOUNDED: 2014 SERVICE: Online manufacturing directory WEBSITE: sourcingusa.com EMPLOYEES: Five GOAL: Create product development and manufacturing community.

LILA ARYAN PHOTOGRAPHY

EXPERIENCE: Each founder has 10 to 25 years of product or software development experience.

Chris Hoppe

SourcingUSA building more efficient search for manufacturers

By Arthur Thomas, staff writer

6 / BizTimes Milwaukee FEBRUARY 4, 2019

HAVING WORKED in product development for years, Chris Hoppe found it frustrating that he could not easily find manufacturers to produce short-run projects. In one case, he only found a laser cutting firm with the right capabilities by chance on a trip to see a friend in Appleton.

“You can find somebody in China to make a couple parts for you pretty cheap or pretty quickly,” Hoppe said. “I thought I should be able to find somebody I can go shake hands with and see their operations and know who I’m working with much easier.”

Hoppe said the existing systems for finding vendors were not set up for what he felt product development professionals needed.

“Their business models are hinged on large manufacturers paying them a lot of money to skew rankings and that just wasted my time and wasted a lot of the manufacturers’ time,” he said. “I thought that was really inefficient and, frankly, disrespectful to both parties.”

So in 2014, along with co-founders Mark Cors and Paul Sanchez, Hoppe started SourcingUSA Inc., an online directory that allows users to find manufacturers based on their capabilities and location.

“I wanted to allow small to mid-sized man-

ufacturers to play on an even playing field,” Hoppe said.

SourcingUSA uses a freemium model, meaning users can search for free and manufacturers can have a profile listing general capabilities. Companies then pay to list more specific capabilities and access data analytics.

Having more detailed and specific capability information is part of how SourcingUSA is trying to stand out. The company also uses an algorithm to provide fallback search if there are no initial results for users.

“Nobody else in the market is providing that kind of granularity of search,” Hoppe said.

He added that manufacturers can also use data from searches to see what kind of capabilities local users are searching for, allowing the company to make more strategic decisions when it comes to capital investments.

“What we really want to do is eventually evolve into a product development and manufacturing community where we can share best practices and product developers and manufacturers can find each other and work together more efficiently,” Hoppe said.

For now, the company is focused on working toward a major revision of its website, which Hoppe said will launch in the coming months. n

1

BIZ LUNCH

Lunch

Biz

2

FAUNTLEROY

A D D R E S S: 316 N. Milwaukee St, Milwaukee WEBSITE: fauntleroymke.com CUISINE: French fare C H E F S: Dan Jacobs and Dan Van Rite M O O D: Playful surroundings in a modern French setting PRICING: Lunch entrees, $12-26; Dinner entrees, $18-30 The two veteran chefs behind DanDan, Dan Jacobs and Dan Van Rite, recently opened a French cuisine restaurant in Milwaukee’s Historic Third Ward. Classic and modern flavors are showcased through a variety of hors d’oeuvre, small plates, salads and entrees. One of the most popular items on the menu is the signature Duck à l’Orange for two. The food is crafted with French technique and farm fresh ingredients. Other popular menu items include the duck confit, chicken liver éclair, grilled beet, and the lyonnaise salad.

Though the restaurant has an elegant setting, there is décor influenced by the 1970s rock era in the dining room. The playful and vibrant room is often used for special occasions. Casual lunches and dinners can also be enjoyed in the bar area.

Fauntleroy is open for lunch Tuesday through Friday from 11 a.m. to 2 p.m. and for dinner Tuesday through Saturday from 5 p.m. to 10 p.m. Happy Hour is Tuesday through Friday from 4 p.m. to 6 p.m. Fauntleroy suggests making a reservation if you have a group of eight or more. 

3

1 2 3

Lyonnaise salad: This salad is an option for a business lunch. Arranged are pork belly, frisee and croutons. To top it off is an egg, with a shallot vinaigrette.

Duck à l’Orange: This dish is made for two. It is a duck breast with an orange sauce and foie gras. A grilled heart salad with leg confit and lentils are included.

Interior: Fauntleroy has an offbeat take on a traditional French restaurant. Its décor mingles European elegance with 1970s rock. biztimes.com / 7

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@BIZTIMESMEDIA – Real-time news

w inter b o ots

YSYCLA FAUX FUR LEATHER WINTER BOOTS $200 at Aldo, Glendale These boots can be worn either as casual brown leather boots or pulled down to reveal faux fur for an extra touch to your outfit. These round-toe, knee-high boots are perfect for both warmth and comfort. They feature a zipper closure, block heel, rubber sole, and a decorative buckle.

SOREL EXPLORER JOAN BOOT $140 at Uncle Dan’s Outdoor Stores, Glendale These sneaker-fit winter boots are crafted for warmth with a faux fur collar. Equipped with a microfleece lining, they also include waterproof leather and suede. You can wear these in the cold on the way to work, while still looking stylish at a business meeting. They come in four colors: black dark stone, quarry black, camel brown ancient fossil or rich wine ancient fossil.

ALDEN 403 INDY BOOT BROWN ANILINE $557 at Milworks, Milwaukee These Alden boots are authentic, with supple glove leather linings.

With robust Horween leather, they guarantee all-day comfort, from a snowstorm to a business meeting. Fun fact: They are called the Indy Boot because they are the boots Indiana Jones wore.

DANNER JAG WOOL $140 at Moda3, Milwaukee Stay dry and comfortable this winter with these leather and wool boots. Perfect for around town and at work, these boots are lightweight and waterproof. The waffle outsole is designed to adapt to multiple environments, like the sidewalk or a snowy, icy trail.

8 / BizTimes Milwaukee FEBRUARY 4, 2019

THE

PUBLIC

RECORD The cost of in-store music and messages

By Arthur Thomas, staff writer Ever wonder how retail stores like Kohl’s manage the music and messages shoppers hear while browsing for sales on shoes, clothes or home décor? A lawsuit filed last year in the U.S. District Court for Eastern Wisconsin shines some light on the decade-long relationship between Menomonee Falls-based Kohl’s Corp. and California-based Disc Marketing LLC, or DMI, the retailer’s vendor for those services.

$43,428

A BR CT ID:S TASF W T EORRBKRI ENAGS T CI NA NECDEURC AT D I IAOGNN O S I S

The monthly payment Kohl’s made to DMI for in-store music and messaging services. From Aug. 1, 2015 to July 31, 2018, Kohl’s paid $36.38 per month per location, plus sales taxes, for the service.

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ABCD: After Breast Canceryouth Diagnosis hope andwith restores Our mission is to provide in thenurtures Milwaukee area arts confidence inprograms all thosetoaffected byhuman breast potential, cancer. We providelearning free, enrichment enhance advance personalized and cultivate information community. and one-to-one support to patients, families and friends affected by breast cancer, from the newly diagnosed to those in treatment and on into survivorship.

Kohl’s ended the contract as of July 31, but DMI says Kohl’s owes it around $390,000 to cover services through the end of April 2019.

DMI says the contract requires those payments, but Kohl’s said it has substantially fulfilled its contractual obligations.

12 months The contract required 12 months of notice before either side ended the contract. DMI claims Kohl’s provided notice in April 2018 while Kohl’s said it issued a request for proposals for music and messaging vendors more than a year before the end of the deal. DMI participated in the RFP, but Kohl’s selected another vendor.

2019 GIVING GUIDE F EATURED NONPROF I T

14 days DMI provided Kohl’s with a list and samples of each song to be included in its music services. Kohl’s was then given 14 days to notify DMI of any songs it did not want played in its stores. n

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125 messages The agreement between Kohl’s and DMI included 12 professionally produced messages per month. Additional messages could be recorded for $250 per hour of studio time. DMI provided 125 message insertions per month, following directions from Kohl’s. Additional insertions were $10 per occurrence.

To learn more, visit biztimes.com/giving

PHONE: (414) 390-5437 WEB: bbcmkids.org The Museum provides evidence-based learning opportunities that prepare children to become capable students and responsible adults. Museum experiences help children build fundamental skills while providing guidance for adults about the influence of early learning on achievement in later years. The Museum offers free/subsidized admission, parenting education, memberships, field trips, transportation assistance, programs and events to ensure that all families can benefit from our mission of “learning by doing” and our commitment to quality early education.

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A recent survey of BizTimes.com readers.

Do you support a sales tax increase to pay for numerous Milwaukee County capital projects, including the Milwaukee Public Museum, Mitchell Park Domes, parks and others?

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NO:

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Ryan Frohmader Chief financial officer Colliers International | Wisconsin

833 E. Michigan St., Suite 500, Milwaukee INDUSTRY: Commercial real estate EMPLOYEES: 150

• Frohmader is more than a year into his role as Colliers International | Wisconsin’s first CFO. • A swimming scholarship at the University of WisconsinMilwaukee led him to the area from Madison, his hometown.

• His longtime interest in math and business led him to earn a bachelor’s degree in accounting and a master’s degree in taxation, and to begin his career as a certified public accountant at Baker

Tilly Virchow Krause LLP.

Share your opinion! Visit biztimes.com/bizpoll to cast your vote in the next Biz Poll.

• Frohmader’s career choice was also inspired by his dad, who was an accountant himself.

• Switching from working for an accounting firm that serves multiple companies to handling finances as a member of a specific company has allowed him to be involved with that company’s day-to-day operations. “My desire was to be part of a business and help

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• Frohmader is energized by the resurgence of development in downtown Milwaukee and throughout southeastern Wisconsin. “It’s not just the big marquee stuff, it’s the ripple effect that it has on the community, housing, retail – it’s all-encompassing.”

• When he is not working, Frohmader spends time with family, staying busy at home with his three- and five-year-old sons and his black lab. He also enjoys all things outdoors.

• He values relationship building, both personally and professionally, and has found it helpful throughout his career. Mentorship is also important: “It’s amazing how a lot of industry veterans are willing and able and cherish the opportunity to impart their knowledge.”

• He takes his coffee black, “with a shot of espresso if I’m moving slow.” n JA KE HILL

MAKE IT HAPPEN

make business decisions.”

POKÉWORKS

BizNews FEATURE

Wave of poké restaurants washes over Milwaukee

By Maredithe Meyer, staff writer A NEW FOOD TREND that first hit Milwaukee a couple years ago has some local diners hooked and restaurant owners wanting a piece of the action.

The name of the game is poké (pronounced poh-kay), a Hawaiian seafood dish that has spurred a wave of new fast-casual concepts throughout the country within the past five years.

Poké is raw fish – usually tuna or salmon – popularly served bowl-style with other ingredients, including seaweed, avocado, edamame and cucumber, over rice, leafy greens or other grains. The word poké, itself, means to slice or cut into pieces, which is telling of how the fish is prepared.

Because of its origin, poké gained mainland popularity in California and throughout the west coast before the trend was picked up by cities such as New York, Chicago and Denver and, later, by Milwaukee.

Locally, the craze hasn’t died down. The number of local and chain poké concepts that have popped up throughout the Milwaukee area since 2017 is approaching 10. They include Milwaukee-based FreshFin Poké; Chicago-based Aloha Poké Co.; Chicago-based Fusion Poke; Irvine, California-based Pokéworks; and Wauwatosa-based R&R Poké.

Another, called Fuji Poke Inc., was proposed last month for Bay View.

“Poké delivers clean, whole-ingredient, healthy food for consumers, and that’s really where food trends overall are going,” said Nate Arkush, co-founder of FreshFin Poké.

The business was first-to-market in the area when it opened its flagship restaurant in January 2017 on Milwaukee’s East Side. It has since grown to operate three additional locations, in the Historic Third Ward, at The Corners of Brookfield shopping center and

in Madison, plus a vendor stand at Fiserv Forum in downtown Milwaukee.

FreshFin serves seven signature bowls and a build-your-own option. The Mango Tango and Spicy Tuna, made with salmon and ahi tuna, are among the more traditional poké bowls on the menu, but for diners who haven’t developed a taste for raw fish, there is always the Cilantro Chicken, Kalua Pork or the vegan Zen Bowl.

Those alternative options have helped FreshFin set itself apart from its fast-growing competition, Arkush said.

“The poké consumer who is looking for raw fish is still our bread and butter and our main focus, but we also recognize that there are a lot of other consumers who may not be into the raw fish, but are into the healthy, flavorful, affordable and quick bowls, and we’re trying to balance the two,” he said.

Before launching FreshFin, Arkush had wanted to open a fast-casual, health-focused restaurant. After researching the poké trend and touring several poké restaurants in Los Angeles, he had made up his mind.

“It was love at first bite,” he said.

Arkush said Milwaukee’s consumer market holds great potential for the trend to continue. He believes a large segment of local diners have not even tried poké yet, but once they do, they will be hooked.

In Arkush’s case, a major draw to the dish was its similarity to another trend-setting food he loves: sushi.

“It gives you all the benefits of sushi, but it’s much quicker, much more affordable, customizable and healthy,” he said.

The advantages of patronizing a counter service poké shop rather than a sit-down sushi restaurant could provide an explanation for the craze.

Irvine, California-based Pokéworks operates 30 locations throughout the U.S.

“It’s easier for consumers,” said Ren Zhang, owner of R&R Poké.

“You don’t have to sit and wait for your food, and while you will likely pay about $20 for your meal at a sushi restaurant, you’ll only pay $10 at a poké restaurant.”

Zhang and his wife, Rachel Zhao, opened up their restaurant last fall in the Wauwatosa Village.

Similar to FreshFin, R&R offers a build-your-own bowl on its menu, but when it comes to its selection of signature bowls, traditional poké is the mainstay, with six types of fish to choose from.

Organic tofu and chicken are also available, but overall, tuna is its best-selling protein, Zhang said.

Zhang entered the poké world with a background in sushi, starting out as a sushi chef and later owning a restaurant. Prior to opening R&R, he worked at a poké shop

for one year, which was enough time to realize the business model was more efficient than that of his previous work.

The typical poké concept is operated like a fast-food restaurant – it employs a minimal amount of employees, utilizes basic equipment and doesn’t require a large space – so from an operator’s perspective, it’s much easier to start.

Jongsoo Kim, who owns sushi restaurants Kanpai in the Third Ward and Kanpai 2 on Milwaukee’s East Side, agrees, but says he will not enter the poke market because he is interested in focusing on highend dining that appeals to high-income diners. Poké appeals heavily to the lunchtime crowd, but not enough to dinnertime diners, which is where the money is, Kim said.

While some poké restaurant owners choose to start from scratch, biztimes.com / 11

others prefer to buy in to one of the many poké franchises that have launched throughout the country.

Andy Wick, a Milwaukee native, recently brought Pokéworks to the area, opening the company’s first Wisconsin location in Brookfield.

Wick recently moved back to his hometown after three years living in Denver, which is where he was first introduced to poké.

Since its 2015 founding, Pokéworks has grown to operate more than 30 locations throughout the country, with an equal amount projected to open by the end of 2020, according to its website.

The new Brookfield location celebrated its grand opening last month with an event that attracted more than 550 people, Wick said.

The restaurant ran out of ahi tuna – using the five cases it had ordered – and served almost 600 bowls throughout the day.

Wick said being a part of a

larger company with an established brand has made the opening process more seamless. It also helps ensure the fish being served at the restaurant is sustainably sourced and safe for consumption, he said.

“That was another part of pairing with a franchise that I took very seriously, because as just a single person, trying to source all these different types of fish properly would be very difficult,” Wick said.

Regardless of the restaurant’s footprint, sourcing and food safety is a major concern when dealing with fresh, raw fish that has the potential to spoil—especially when it is being shipped halfway across the country.

FreshFin, which sources its salmon directly from the Bay of Fundy between Nova Scotia and New Brunswick, places multiple orders each week to make sure the fish is served no more than 48

FRESHFIN POKÉ

BizNews

Poké bowls served at FreshFin Poké.

hours after it is caught.

During the shipping process, the fish are refrigerated and kept on ice. Thermostats monitor the temperature of the fish, allowing the supplier to maintain a required range during transit.

“If something were to go wrong, they would be able to tell

that it wasn’t within the thermostat window that’s acceptable, and they would destroy the product before it even gets to us,” Arkush said.

Once the fish arrives at the restaurant, it is handled and stored carefully so it maintains its freshness and taste until it is sliced and served. n

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the

Interview

DICK PALMERSHEIM was named chief executive officer of Milwaukee-based

Perlick Corp., a family-owned manufacturer of custom bar and refrigeration equipment, in October. BizTimes Milwaukee reporter Arthur Thomas sat down with Palmersheim, a former executive at S.C. Johnson, Bombardier Recreational Products, Broan-NuTone and ASQ, to find out more about his new role, his background and running a family company.

What attracted you to the position? “… It’s in its fifth generation now of ownership and management engagement of the company. Having worked for family companies in the past with most of my career spent at S.C. Johnson, I’ve come to realize the unique and very special advantages and benefits that a family company offers versus other types of companies. Family companies, they manage from generation to generation, whereas public companies manage from quarter to quarter. That gives a family company, in my view, a lot of unique advantages that are leverage-able in the marketplace, so that was a very key factor that was attractive to me. The family culture and family values that the Molinari and the Bergum families (part of the Perlick family tree) continue to infuse within the organization are very attractive and make this a special place to work.”

Did you feel like your background fit well with Perlick?

“Yes, it absolutely did. My background has been largely with family companies but also with public companies, but the common denominator across those experiences has been companies that have grown based on the strength of their brands, the strength of their products and the ability to innovate within their channels. The values of the company that drive passionate employees and engaged employees, those are all common denominators of my background experience, so as I looked at the Perlick opportunity, I looked at it as a great fit to leverage those background experiences to the future success of Perlick.”

What are the biggest challenges for Perlick to overcome moving forward? “… In the near-term … the tariff situation and what that is doing to our product costs. We have in our product lines, as you can imagine in a bar environment or a refrigerator-type of appliance, there’s a lot of stainless steel in those products. … So that’s a key area, headwind, that we’re working through right now in terms of how to mitigate those risks and how to maintain a profitable business moving forward, but it’s presenting its own set of very significant challenges that we’re grappling with over the next six to 12 months.”

JAKE HILL

Do you feel an extra sense of responsibility managing a family company on top of the economic realities?

Dick Palmersheim Chief executive officer, Perlick Corp.

8300 Good Hope Road, Milwaukee Employees: 370 perlick.com

“I’m a big believer in servant leadership and that’s what’s guided me and motivated me and caused me to want to get into roles like I am now with Perlick. In that, I and my team have a responsibility to the employees of Perlick and to the family, to the employees to ensure that Perlick remains a great place to work and a place that their families can feel confident will represent an opportunity for them to have the jobs that will allow them to live the lifestyles that they want to live. And obviously to the (Perlick) family, the family is moving now into the fifth generation and is intending to keep this a family company for generations beyond. It creates an added sense of responsibility that is very, very consistent with what motivates me as a servant leader.” n biztimes.com / 13

Real Estate

REAL ESTATE WEEKLY – The week’s most significant real estate news → biztimes.com/subscribe

There have been a number of ideas to redevelop the former Le Rendez-vous at the Point restaurant in Oconomowoc, but none have moved forward so far.

Okauchee zoning district aims to spur development

IN A PRIME LOCATION on West Lake Drive in the town of Oconomowoc community known as Okauchee sits the site of the former Le Rendez-vous at the Point restaurant. Since the French restaurant closed its doors in late 2017, there have been several proposals for redevelopment, said Amy Barrows, senior planner with the Waukesha County Department of Parks and Land Use. The closed restaurant’s current

owner, Lannon-based 3rd Rock Development LLC, bought the site last year and unveiled plans that called for the development of luxury condos. Due to issues with current zoning provisions, those plans haven’t gone anywhere, Barrows said.

This is just one of several stories told of what could be in the area. It was the desire by local officials to revitalize downtown Okauchee that led to the creation of the Downtown Okauchee Advisory Committee last year.

“We’re modifying code language that’s currently reflective of a rural environment in order to accommodate a more vibrant downtown,” Barrows said.

The group, which consists of town and county officials as well as business and community leaders, late last year came up with a set of recommendations. The area of the proposed 83-acre downtown district lies just north of Highway 16, and includes corridors along Wisconsin Avenue and Lake Drive.

Specifically, the advisory committee’s recommendations would: • Allow for mixed uses and increased residential densities.

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An affiliate of Milwaukee-based J. Jeffers & Co. recently purchased both a three-story, 6,400-square-foot building and a two-story, 14,400-square-foot building near the northwest corner of South Sixth Street and West National Avenue in Milwaukee’s Walker’s Point neighborhood.

The developer said it would lease back one of the buildings to former owner and longtime anchor the Council for the Spanish Speaking. It also said it would soon unveil redevelopment plans for the entire site.

The purchase comes at a time when J. Jeffers & Co. president and chief executive officer Josh Jeffers has taken on more and more development projects. For instance, he plans to break ground this spring on the Broadway Connection, an 11-story office and retail building downtown into which law firm Husch Blackwell plans to move its Milwaukee office.

• Modify dimensional standards including road setback, offset, height, number of stories, minimum floor area and building footprint to better accommodate a downtown environment.

• Update signage and parking regulations.

• Apply unique building design and site requirements to mixed-use, commercial, public/institutional and multi-family projects.

Bob Hultquist, chairman of the town of Oconomowoc, said the 13-member Downtown Okauchee Advisory Committee had good ideas for what it would like to see happen in downtown Okauchee. He noted some ideas thrown around included more living areas, a hotel, and increased public access to the lake for recreational activities.

“It became a very interesting committee,” he said. “All these people (on the committee) were volunteering their time and efforts.”

The advisory committee’s recommendations are being shared with the community, including through a newsletter written by Hultquist and at an open house scheduled for late January.

Following that, the plan is to hold a public hearing in February before bringing the recommendation before various committees in the spring. If all goes according to schedule, the Waukesha County Board would consider the proposal on April 23.

Lorna Mueller, a real estate broker and area resident, said she joined the advisory committee because she wanted to see that area revitalized.

“I want to see the best in our community,” she said.

Mueller also has personal experience with the difficulties of getting developments moving in the area. She has listed 12 acres of land for sale on County Highway P for about two years now “We’ve had multiple offers, but we haven’t gotten anywhere,” she said.

At issue is the need for more sewer requisitions, Mueller said.

Without sewer, the only other capability of new buildings with toilets would be septic systems, though there are strict rules on how many of those systems can be on each acre.

“That wouldn’t be the highest and best use for that land,” she said.

This could indeed be a sticking point with the whole zoning district proposal, however. Hultquist said almost all plans the advisory committee has proposed are based on the condition that the area have sewer service. And the town is a sewer customer of the City of Oconomowoc, which controls the sewer treatment plant.

“In my opinion, the whole project is not going anywhere unless the city relinquishes some of the sewer recs that we need to revitalize Okauchee,” he said.

City officials, however, have been reluctant to do that without the town, in turn, giving up property in order for the city to expand.

The town board has so far not cut such a deal, Hultquist said.

Barrows said the county has offered to participate in conversations between the two municipalities regarding sewer capacity as needed.

At least one project, the planned redevelopment of the former Le Rendez-vous property into condos, is on hold while talks continue on the downtown zoning district. In an email, Tammy Ristow of 3rd Rock Development said the company is awaiting the revisions to current zoning provisions before approaching the town board with its proposal.

But for now, the building on the site sits vacant. n

UGLY BUILDING: FORMER RC’S BEER GARDEN The former RC’s Beer Garden, 1530 E. North Ave., Milwaukee, was purchased in May 2018 by Welcome East Side LLC, which is registered to Harjeet “Rick” Walia. He and his brother Ajit “Jay” Walia operate several Milwaukee-area gas stations and convenience stores and are the former owners of the Park East Hotel.

The former RC’s has sat vacant since then. Walia couldn’t be reached for comment, but John Kesselman, who is the leasing agent on the property, said the owner would like to redevelop it.

“We’re looking at options,” he said.

An issue impeding redevelopment is that other buildings on the same block are in similar condition, Kesselman said. He added he has received more than 50 inquiries on the building, but it would need significant upgrades if someone were to reopen it as a restaurant or bar.

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• Building a Lead Generation System: Consult Operations, DVIRC

12:30pm – 4:30pm Building a Lead Generation System

8:30am – 9:30am Keynote Speaker: ChrisAguila Scafario, Vice President, Dr. Bill Mitchell, - a Foxconn Company

8:30am – 4:30pm HACCP Certification

9:30am – 3:15pm Sessions

• Directors’ Reception at the Hyatt Regency’ 3:15pm – Network Reception

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SESSIONS:

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Workforce Excellence »» Attracting & Retaining Talent - The Role of Messaging »» Optimizing your Employee Experience »» Winning the War for Talent

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Improving Productivity »» Productivity Through Leadership Development »» Doing More with Fewer Employees »» Transforming Softly for High Impact Results

Leveraging Sustainability »» Green Masters – Assessing & Recognizing Your Sustainability Performance »» The Sustainable Supplier »» Water Risk and Your Bottom Line

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m anu fact u r ingm at t e r s.o r g

Improving Productivity Track at MM! to focus on increasing revenue per full-time employee A PAIR OF RELATED TRENDS are leading economists and manufacturers to look at productivity in a new light.

A troubling shortage of workers is making it difficult for manufacturers to fill open positions, while the nation’s Gross Domestic Product growth rate is slowing due to fewer people entering the workforce.

Worker shortages are limiting manufacturers’ ability to grow and are leading manufacturers to focus on ways to improve the productivity of their existing workforces. Amber Laurent, market principal for ManpowerGroup in Wisconsin, reported that 46 percent of employers across the country are having trouble finding workers. This trend is expected to continue.

U.S. manufacturing sector productivity increased 0.5 percent over the last five years, which the U.S Bureau of Labor Statistics

notes is well below the growth rate of 3.2 percent from the previous 20 years. Leading economists and academics are advocating for productivity enhancement as a means of shoring up GDP growth.

A solution to ongoing worker shortage and slowing GDP growth is to increase worker productivity, or increasing a company’s revenue per full-time employee. What is needed to solve these problems aren’t just incremental improvements, but transformational ones.

A group of Wisconsin manufacturing industry stakeholders joined together to form the Transformational Productivity Initiative (TPI) to proactively work on a solution to these challenges. TPI collaborators include the Wisconsin Manufacturing Extension Partnership, the Wisconsin Economic Development Corporation, the Milwaukee 7, the University

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of Wisconsin-Madison, and the University of Wisconsin-Stout’s Manufacturing Outreach Center.

The resulting TPI model presumes that productivity gains of 40 percent or more are both possible and necessary for manufacturers that are committed and willing to invest the time and resources required to transform all aspects of production.

Transformational productivity methods and results are based on extensive research.

“Helping manufacturers be more productive and grow is the core mission of this initiative,” WMEP Executive Director and Chief Executive Officer Tim Wiora said. “TPI is all about getting small and medium-size manufacturers productively participating and thriving in the rapidly changing industrial landscape.”

The TPI process recognizes that there are no silver bullets and improvements are required in all aspects of the business, including planning and execution; human capital management and engagement; operational and enterprise excellence; finding and exploiting a company’s niche;

and the use of automation, robotics and digital technologies.

More than a dozen Wisconsin manufacturers have completed, or are in the process of utilizing, the TPI process and are already reporting significant success. The upcoming 2019 Manufacturing Matters! conference will feature “Improving Productivity” and “Industry 4.0/Technology” tracks that will explore several ways Wisconsin manufacturers have significantly improved productivity and thrived in this most challenging labor environment.

The conference will be held at the Hyatt Regency Hotel in Milwaukee on Feb. 21.

The “Improving Productivity” track is new to this year’s conference and will include sessions that focus on engaging and working with an existing workforce to realize productivity gains. Sessions include: • “Improving Productivity Through Leadership Development” – As companies experience retirements and turnover, the role of first-line supervisors is becoming increasingly important, as these leaders can influence employee

engagement and retention and continuous improvement efforts that drive productivity.

• “Doing More with Fewer Employees” – This session highlights the efforts of two companies, J&R Machine and Racine Metal Fab, to increase their productivity and grow revenues and profits through Key Performance Indicators, improved processes and technology.

• “Transforming Softly for High Impact Results” – In this session, JARP Industries shares its journey to having highly engaged employees who are creating superior value.

The “Industry 4.0/Technology” track focuses on technological solutions, from digital design to automation that improves productivity. Sessions include: • “Industry 4.0 - The Digital Thread” highlights two Wisconsin manufacturers, WB Manufacturing and JB Systems, and their successful efforts to digitize the value chain from the initial customer experience through production.

• “Lessons from DevOps: Mixing Development and Production” will explain how to utilize information systems that measure and drive productivity improvement.

• “Automation Assessment – Finding the Right Path for your Organization,” presented by Neff Automation, will present smart automation solutions for manufacturers and how to assess which solutions, if any, are right for your organization.

Randy Bertram, WMEP’s Director of Sustainability and Operational Excellence Services, describes the changes taking place in manufacturing and the opportunities that accompany it. “We have clearly entered a new stage of industrial production,” said Bertram. “It is often referred to as the fourth industrial revolution, or industry 4.0. The promise is higher productivity and economic growth. Conference attendees will learn how to integrate best practices, automation and technology to realize significantly more output per employee.” n

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Manufacturing Matters! 2019 adds focus on Sustainability MANUFACTURERS ARE INCREASING their focus on sustainability as they realize that there is a strong business case that comes with the commitment. A primary contributor, from a financial perspective, is from improved resource utilization, which boosts overall productivity and profitability.

A commitment to sustainability also often leads to product and service innovations that extend beyond their impact on an environmental footprint, such as 3-D printing and digital design. In addition, major retailers, such as Walmart, and leading manufacturers, like Oshkosh Corp., are proactively measuring and evaluating their sustainability impacts and requiring the same of their suppliers.

Just as important, employees, especially millennials, are much more aware of and interested in a company’s sustainability efforts and consider this factor in their career decisions.

Two organizations viewed as pioneers in this space, the Wisconsin Sustainable Business Council and the Wisconsin Manufacturing Extension Partnership recently joined forces to leverage their efforts at advancing sustainable business practices.

The Council is a network of Wisconsin businesses and organizations that are interested and actively engaged in the challenge of sustainability. It provides businesses with the tools they need to understand their sustainability progress and help them strive for continuous improvement. With direction from the business community, the council developed and oversees the Green Masters Program, the state’s largest and most visible sustainability assessment and recognition program. Each year, nearly 200 businesses apply to the Green Masters program, with the top scoring businesses recognized at the Council’s annual conference.

The WMEP, through its Profitable Sustainability program and other related services, helps organizations identify and realize improvements that drive profits while also reducing environmental impacts.

“Sustainability is the right thing to do, and it is good for business,” said Tim Wiora, CEO of the Wisconsin Manufacturing Extension Partnership, a nonprofit consulting special event coverage

company that has helped 154 businesses save about $20 million through sustainability practices while saving about 85 million kilowatt-hours of electricity use and the consumption of 193 million gallons of water.

Those same businesses generated $22 million in new revenue from green products.

When the Council’s founder and executive director Tom Eggert announced his retirement earlier this year, he contacted Randy Bertram, WMEP’s Director of Sustainability and Operational Excellence services, to discuss the potential of hosting the Council’s Bertram work at the WMEP. The two organizations made it official at the Council’s recent Sustainability Conference while announcing that the WMEP’s marquee manufacturing event, Manufacturing Matters! would be offering a full track on sustainability.

“Environmental stewardship, resource efficiency and productivity go hand in hand,” Bertram said. “Linking the council with Manufacturing Matters! solidifies this linkage, helping attendees develop an integrated comprehensive strategy in response to an ever- expanding list of stakeholder interests.”

Jessy Servi Ortiz has been appointed to serve as the Council’s new managing director.

“The Council is excited to have a presence at ManufacturServi Ortiz ing Matters! this year to engage the manufacturing community in the conversation about sustainable business practices and continuous improvement.

This synergy can help advance conference attendees’ understanding, programming and results in sustainability across business functions. It’s beneficial all around.”

The sustainability track is called “Leveraging Sustainability” and consists of three breakout sessions focused on topics of interest to Wisconsin manufacturers and other

WSBC’s Tom Eggert and WMEP’s Tim Wiora at the contract signing.

businesses. The tracks are: • “Green Masters: Assessing and Recognizing Your Sustainability Performance,” describes the Council’s highly successful Green Masters program and highlights the sustainability work of Kohler Co. that led to its Green Masters designation.

• “The Sustainable Supplier,” features presentations by Oshkosh Corp. and MillerCoors that share how investors’ and key stakeholders’ sustainability expectations are translating into supplier requirements downstream.

• A final session will focus on the emerging water risk many companies are facing as water shortages are exRandy Bertram and Tim Tumanic. pected to intensify across the country. By 2025. financial water risk is expected to affect Hotel in Milwaukee on February 21st $145 trillion in business assets. This “The WMEP is committed to assuring session, which features presentations the legacy of the Wisconsin Sustainable

by Butter Buds, Grande Cheese, and Business Council as it continues to grow and Matt Howard, Director of the Alliance thrive, and we are honored to have been for Water Stewardship North America, selected by the WSBC to carry this legacy will discuss how to manage water risk forward,” Wiora said. “The WMEP has been and understand water opportunities. a national leader in developing profitable sustainability solutions for manufacturers The WMEP and the Council will present and we look forward to the expansion of the these sessions at the 2019 Manufacturing Council and the sustainability ecosystem in Matters! Conference at the Hyatt Regency Wisconsin.” n biztimes.com / 19

STORY COVER

Common themes in family business MONEY DIVORCE EGO

HOW TO HANDLE KIN CONFLICT IN B

BY ARTHUR THOMAS, staff writer

20 / BizTimes Milwaukee FEBRUARY 4, 2019

disputes

USINESS

rank and Dominic Giuffre started their business relationship in 1965 with a handshake in front of their parents.

More than 50 years later, the brothers found themselves in a court fight over how to divide and untangle their business interests, including Milwaukee-based Giuffre Bros.

Cranes Inc., a marina in Florida and a number of real estate holdings. Dominic sued Frank in June and while court records say the two sides are engaging in settlement talks, the complaint filed by Dominic makes clear just how far things have come since that initial handshake.

The complaint, filed in Milwaukee County Circuit Court, accuses Frank of “increasingly oppressive and at times illegal and fraudulent” business conduct. It alleges he committed or tolerated the wasting of company resources, paid himself disproportionate amounts of profits and used the business as an ATM. Frank allegedly backtracked on an agreement to pay a bonus to Dominic’s daughter, fired Dominic Jr. on Dominic’s birthday, cancelled once weekly company meetings and restricted access to company financials.

Dominic sought a temporary restraining order in June to block any additional actions. Attorneys for Frank argued such an action would cause challenges for the business and contended the two sides could have continued negotiations. They said the outstanding issues included the value of the businesses, capital account imbalances and resolving loans to shareholders.

“He has built his entire life around this company and this company around his life,” John Finerty Jr., an attorney for Frank, said of his client at the hearing. “It bears his name. And his brother just decided to air this poor family’s dirty laundry for the whole world to see.”

Disagreements happen in all business settings, but fights in a family business have a unique way of spreading beyond the office. When people reach their wits’ end in an average business, one person might be forced to leave. Maybe the person is fired, maybe he resigns, or maybe she leaves with a nice severance package and goes her own way.

In a family business, the fights always threaten to creep into the conversation at daily dinners, and losing a business partner can also mean splitting a family apart. Family or not, disagreements between owners can be complicated and sometimes, they may end up in court. Before long, long-simmering disputes end up as allegations in public records, immortalized in a way they were not before. biztimes.com / 21

STORY COVER

SEVILLE FLEXPACK Take the case of the Yakich family and Seville Flexpack Corp., an Oak Creek-based flexible packaging manufacturer founded by Walter Yakich.

Less than six months after Yakich died in 2014, his heirs found themselves in Milwaukee County probate court, with one daughter seeking to remove the other as the executor of the estate.

There were disputes over how to handle a Volkswagen Phaeton that Walter had owned, along with a Navy chest, a German mug and a professional-grade lawn mower.

Jan Drzewiecki, one of Yakich’s daughters, was also accused by her siblings of giving herself a substantial raise after taking over operations at the business.

Drzewiecki countered that the raise was the same one all employees at the company received and argued the allegations against her were the result of misunderstandings and resentment that she was chosen by her father to run the business.

Nearly four years after the initial court filings, the family and attorneys continued to sort out Walter’s affairs, but not before family members were jailed on contempt of court charges and the company was ultimately sold to the German firm Sudpack.

PAYNE & DOLAN COUSINS SUBS Another family feud involved the near sale of Menomonee Falls-based Cousins Submarines Inc. to the British firm Crosslane Ltd. Co-founders and cousins James Sheppard and William Specht were negotiating a potential sale of the Cousins Subs sandwich chain operator to Crosslane in 2007 when Sheppard died.

According to Wisconsin appeals court records, the duo had a memorandum of understanding in place to sell their stock to Crosslane for $12 million in cash and debt. After Sheppard’s death, the deal fell apart. Sheppard’s estate alleged Specht unilaterally ended the deal with an eye toward buying the estate out and then selling the company himself. Specht contended, in court filings, he did not like the way Crosslane was negotiating and felt he could not trust their offers. He also had second thoughts about selling a company he had founded and was rejuvenated by not having to deal with conflicts with Sheppard that prompted the cousins to consider a sale in the first place.

Specht did offer to buy the estate’s shares for around $3.2 million by the end of 2007. The estate countered with $6.9 million. When negotiations stalled out a few months later with the two sides a little more than $500,000 apart, Sheppard’s estate went to court. After more than four years of litigation, a state appeals court in 2013 upheld a court-ordered appraisal and sale, valuing the estate’s stock at $2.6 million.

In an ongoing case, Nancy and John Dewey are suing Walbec Group Inc., which includes Waukesha-based paving and asphalt company Payne & Dolan Inc., along with Kurt and David Bechthold, over what the Deweys call “a classic freeze-out/ squeeze-out oppression formula.”

The company and the Bechtholds say John and Nancy “have been at war with their fellow shareholders since 2012,” according to a motion to dismiss filed in mid-January.

Nancy is one of three children to whom Walter Bechthold passed his ownership interests equally, along with Ned Bechthold and Ellen Bechthold.

Nancy and Ned have both passed some of their ownership interests to their children, including John in Nancy’s case, and Kurt and David in Ned’s case.

John and Nancy claim the companies are hiding the value of the shares through rapid depreciation of assets and concealing real estate holdings.

They also object to the use of “book value” to determine the value of their shares and claim Kurt controls a majority of the shares, using his power to freeze them out of the business.

In its filings, the Walbec Group says Kurt owns between 3 and 12 percent of the entities involved and, like every other family member, is a minority shareholder.

“This is not fraud or oppression; it is shareholder democracy,” the filing says.

The Walbec filing also points out Nancy was on the company board when the “book value” valuation method was adopted. It is part of a right-of-refusal provision in the bylaws intended to prevent the destruction of “the family character of the business,” the filing says.

ARTHUR THOMAS

Cousins Submarines co-founder William Specht and the estate of co-founder James Sheppard engaged in a four-year legal battle over the sale of the estate’s shares in the business to Specht.

22 / BizTimes Milwaukee FEBRUARY 4, 2019

ARTHUR THOMAS

The sign outside of the corporate office for Walbec Group, which includes Payne & Dolan, in Waukesha.

The current case, filed in the U.S. District Court for Eastern Wisconsin, follows an earlier lawsuit John filed in Waukesha County Circuit Court in 2013 that was ultimately dismissed. In a statement,

Walbec spokeswoman Summer Strand said “these latest bogus claims sound like a broken record that has been heard and rejected before.”

“The Walbec Group and its affiliated compa-

nies have been successful for more than 85 years, and a scurrilous lawsuit with trumped up falsehoods won’t change that,” Strand said.

Attorneys and representatives for those involved

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STORY COVER in other cases in this story either did not respond to requests or declined to comment on their cases.

PRE-PLANNING AND COMMUNICATION In the Giuffre case, Milwaukee County Circuit Court Judge William Sosnay ultimately denied the motion for a temporary restraining order, but he also urged the principals in the case to use available settlement options, noting it would be less expensive than litigation.

“The principals themselves are not necessarily the sole cause of why we’re here today,” Sosnay said at the hearing. “They have relatives and those relatives I’m sure are pushing buttons which are pushing the principals and further separating them from achieving the ultimate goal that perhaps both of them want to see happen.”

Family fights, particularly those that end up in court, can drag on for years and drain value from a family-owned business. But family businesses also have advantages. They can offer some financial stability and independence for owners, along with the ability to create a legacy.

Family businesses also have an edge in recruiting workers, with 54 percent of respondents globally

saying they would prefer to work in a family business, according to a 2017 Edelman survey. The same survey found people – by a 45 point margin – are willing to pay more for products or services when they know they are buying from a family business.

“When it’s your name on that door, there is a tremendous amount of responsibility that goes with that,” said David Borst, executive director and chief operating officer of Family Business Leadership Partners.

How, then, do families avoid reaching a point where their fights spill into the public eye? When does a simple handshake agreement built on loyalty and trust need to turn into a formal set of policies and procedures? How can one generation ensure the next generation will follow its wishes? As families grow, what does it mean to treat everyone fairly? How does a family welcome in a new spouse while protecting a legacy?

The answers to those questions are as simple and as complex as communication and prior planning, experts say. While many families might think they are close-knit and, as a result, won’t have to worry about conflict, Borst says they should expect the opposite.

“It will happen to your family, regardless. I have seen literally fights over a nickel,” Borst said.

“Expect that there is going to be a problem,” Borst added. “If there isn’t, it’s probably an indica-

tion that you’ve done a good job of pre-planning and getting your ducks in a row and having the right conversations with the right people.”

Brad Herda, a certified FocalPoint business coach based in Sussex, said it is important to have planning conversations when family members are in good health and relationships are strong.

“Waiting until the primary equity owner doesn’t have a voice is always very, very dangerous,” Herda said.

“There’s lots of ways to do it,” Herda added.

“Without a plan, though, and when you’re not in good health or in good relationships, it becomes really, really ugly when you’re starting to talk about potentially hundreds of thousands or even millions of dollars.”

HOW THINGS GO WRONG While there may be plenty of ways to set up a family business or manage the transition from one generation to the next, there are also plenty of ways for things to go wrong.

Herda said many of the conflicts he sees involve family members not understanding the differences in compensation for those working in the business and those who simply own part of the business. Other challenges include dealing with changes in the business value or having clearly defined buy-sell agreements.

Borst said he’d like to think most families would be challenged by the intricacies of succes-

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ARTHUR THOMAS

sion planning or how the business is structured.

But in reality, he said many families are confronted with personal issues like a father approaching retirement but refusing to share financials with the next generation.

“It’s those kinds of interpersonal conflict issues that really, I think, are more difficult to overcome because it involves ego,” Borst said.

He added that many of the conflicts he sees involve an older generation trying to stay on too long or a younger generation trying to take control too soon.

“That creates tremendous interpersonal conflict,” Borst said.

The reality is in many cases, particularly for founders, the older generation has put decades into building a company. The business has become the founder’s largest asset and represents future financial security, either through a buyout or some other system. Borst said older generations have also watched the next generation grow up. They know about their children’s strengths, but they also know about their faults and mistakes.

“They come and they say, ‘I’m ready to take control of your company.’ You have to really trust that they are prepared and that they are confident that they can do the job, because in a lot of situations your future, financially, is going to rest in their hands,” Borst said.

Founders may be right to have some concerns.

A 2018 survey of global family businesses by PwC

The Giuffre Bros. headquarters in Milwaukee.

found 42 percent of first-generation firms were experiencing double-digit sales growth, compared to 32 percent in the second generation and 27 percent in the third generation.

At the same time, the next generation can bring new ideas and direction to the business, particularly in the area of technology, Borst said.

“That new generation brings in a newness, lots of possibilities and a lot of hope,” he said.

Herda and Borst both emphasized the impor-

tance of planning ahead. Herda said it provides everyone certainty on what they will do when the business arrives at certain transitions or milestones.

“Pre-planning, it gets you about 85, 90 percent of the way,” Borst said. “Then as you really kind of close in on the last six months before the handover takes place, then there are some other changes that are dependent on the times we’re living in.”

He pointed out that things like changes in the tax code can mean a planned transfer of an asset

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day,’ and they don’t think about the ownership piece,” he said.

STORY COVER

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MAKING THINGS RIGHT

German firm Sudpack acquired Oak Creek-based Seville Flexpack Corp. Family members fought over the estate of the company’s founder.

should be handled differently. It’s important for business owners to continually review their plans to adapt to changes in regulations and in the business, Herda said. Both recommended business owners utilize a team of service providers, including lawyers, accountants, bankers and insurance agents. Borst said it is important to turn to those with experience working with family firms.

“There are some businesses that simply just

don’t understand the nuances of family businesses,” he said.

Herda said there are many business owners who do not consider those nuances themselves. The founder assumes the title of president and focuses on day-to-day operations without paying attention to return expectations or succession planning.

“Many family business owners go to work every day saying, ‘I’ve just got to go to work every

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With or without a long-term plan, more communication among family members can help de-escalate a situation when conflict begins to emerge.

“It’s simple to say, hard to do,” Herda said.

Consider a family business in which four people – a father, son, daughter and uncle – each own a 25 percent stake in the company. The father and son are the only ones working in the business and grow it from a $4 million to a $15 million valuation.

Should everyone’s stake still be worth the same given the time and effort the father and son put into the business?

“That’s where the resentment piece starts to come in,” Herda said. “Having clarity as to what happens when that increased value comes about and how that’s split, that’s very, very crucial to have that conversation.”

Herda said families also need to understand the differences between payroll compensation from the business and ownership compensation.

“They’re really two different things and then that’s when things get messy, when you start taking it out to the family members who aren’t working for the business, but they’re expecting compensation,” he said.

“One of the biggest problems we have in family businesses is people like getting the div-

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idend checks, but there’s also a whole group of people that are getting the dividend checks and are actually working in the organization,” Borst said. “Those are some distinctions that need to be made.”

Money and the emotions of family relationships can be a spark for conflict. Absent regular communication and planning, families could be forced to jump into the deep end when issues emerge. Borst said he recommends families hold an annual retreat to have important conversations. The retreat can include fun and recreation, but should also have time set aside for a business meeting. Having a planned time for tough conversations, after all, is a much better venue for them than waiting for an issue to pop up at the dinner table on Christmas Eve. Particularly for larger families, Borst also recommends a monthly or quarterly update to share the latest happenings in an honest, open forum. He said it is easier to keep communication going when there are one or two children and both work in the business. Communication across large groups and multiple generations becomes more difficult.

IN-LAWS AND THE NEXT GENERATION Passing the business to the next generation also presents the potential for conflict.

“There’s an assumption that a lot of people make

that just because mom and dad own a family business that it’s mine, too, just because I was born from them,” Borst said. “That’s not necessarily the case.”

A business might eventually be passed on by inheritance or some other method, but Borst said there is no requirement to do so and that should not be an expectation. He suggests letting children experience the business as young as six or seven years old, even if it is just taking the garbage out or coming to visit. In high school and college, parents should have more serious conversations about the future and make plans accordingly.

Introducing children to the business presents one challenge, but the prospect of adding spouses to the ownership picture is even more fraught with potential conflict. Borst said he recommends prenuptial agreements to protect families, noting that nearly half of marriages end in divorce and it is not worth the risk to the family business.

“That’s a very awkward situation because typically the young person doesn’t want to tell their loved one that, ‘Well, we’re going to start our relationship on the basis of mistrust,’” Borst said.

An in-law can also present an opportunity to pass the business to the next generation, but Borst said owners “need to be darn sure they understand the values and everything that’s gone into the business.”

Whether the business will transition to an inlaw or someone else in the family, Borst said he recommends owners record an ethical will to con-

vey the values of the business. He said making a video provides a more visual reminder for future generations and can include ethical policies or specific acts, like an annual Christmas bonus.

As families grow and ownership of the company expands, both Herda and Borst said it’s important to note dividing things fairly does not necessarily mean making the division equal.

“Maybe it’s a straight split of the shares, but maybe it’s not all voting, because you don’t necessarily want your dentist brother making decisions on an injection molding business because he doesn’t know anything about it,” Herda said.

He added that it’s important to set expectations for everyone on the company board or in ownership, calling it an “underplayed” area of family businesses.

Depending on the conflict and existing relationships, Borst said it is OK if a business owner decides it is necessary to cut off or distance the operation from a family member.

“You may have to do that,” he said. “It may be in the family business’ best interest.”

As a business grows, more people beyond the family count on it, including customers, vendors and employees, Borst said.

“You have to keep in mind that when you’re in business together, it’s not just about the family; it’s about others, as well,” he said. “That’s what you sign up for. That’s the tough calls that you have to make when you have a family business.” n

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Special Report WEALTH MANAGEMENT & ESTATE PLANNING

What happens when there’s no one to take over the family business?

By Lauren Anderson, staff writer IN LATE NOVEMBER, 83-year-old Peter Gerasopoulos closed the doors of Cobbler Shoe Service on Milwaukee’s south side after 62 years of business.

Over the course of six decades – during which the business moved from Bay View to the Point Loomis shopping center and ultimately to a storefront on West Oklahoma Avenue – Peter won a loyal customer base, repairing shoes alongside his wife, Judy, who worked at the shop counter for more than 50 years.

“He took care of a lot of people, and a lot of good people came through our life,” Judy said.

“A lot of those customers weren’t just customers; they became friends.”

When the couple decided it was time to retire last year, there wasn’t a clear path for the future of the business.

Both of their children, now 51 and 48 years old, chose to pursue other career paths outside

the family business. Meanwhile, none of the interested buyers had a sufficient understanding of the intricacies of shoe repair, according to Judy.

“We tried for eight months to sell the shop,” she said. “We had people coming in, but they had no knowledge of shoe repair. Their big question was how much goes into the register, but in order to get money in the register, you have to have skills to fix the shoes. We could find no one. So we just had to decide to close it up and walk away.”

When it came time to retire, Peter and Judy faced a challenge common to small business owners: the absence of a family member successor.

According to the Family Business Alliance, about 30 percent of all family-owned businesses survive into the second generation; 12 percent are still viable into the third generation;

and 3 percent operate in the fourth generation and beyond.

“There are two miracles that happen in any transition from one generation to the next in a family business: the miracle of ownership SLIGH succession and miracle of leadership succession,” said Rob Sligh, a consultant with The Family Business Consulting Group. “On the leadership side, it has to do with owners or top leaders willing to let go and the next generation being willing or interested in grabbing on. Each kid in a family has their own interests that need to be nurtured and developed and expressed.

Sometimes those match the family business.

Sometimes they don’t.”

Tina Kambouris took over ownership of Mykonos, a Greek restaurant in Milwaukee’s Yankee Hill neighborhood, from her brother and his wife in 2003 following a career in banking. During certain seasons, most of the restaurant’s employees were family members,

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Mykonos, a Greek restaurant on Milwaukee’s East Side, recently closed after 24 years.

Family members were offered an opportunity to take on the business, but they wanted to pursue other careers. Her daughter, who studied fashion at Mount Mary University in Milwaukee, went on to work for Kohl’s Corp. in Menomonee Falls.

“They all saw how hard it was to run a restaurant,” Kambouris said. “The restaurant industry is very labor intensive and even though you’re very passionate about it, it’s difficult to never have downtime. You miss out on many family events. It demands that you are there in order to be successful.”

Sligh said it is a best practice for family business owners to let their children work at the business when they are kids and teenagers to get acquainted with the operation, but then encourage them to work outside of it when they are older.

“Having teenagers work at the business during summers and school vacations helps them get a feel for what it’s like in the business and it also helps the kids meet and make friends with people in the business,” Sligh said.

“But after completing whatever their schooling is, it’s good to go somewhere else so they can

O N S I N 2019 including her brother’s children and her daughter, who worked there throughout high school and college.

Although the restaurant enjoyed a loyal customer base – 90 percent of patrons, she estimated, were repeat customers – Kambouris decided to close the business when her lease expired at the end of 2018.

earn their own promotions and gain their own credibility, gain confidence and perspective in their own abilities and interests. Then, if there is a match between interests and skills and demonstrated abilities, that’s a great time for the next generation to come into the business.”

Judy and Peter Gerasopoulos’ children grew up at their parents’ business.

“As soon as they came home from the hospital, I was back at work and they were there,” Judy said. “They used to sleep in the stroller and play in playpens in the front of the store.

They worked in the store in grade school and high school, taking in shoes, doing shoe shines, counter work, any jobs that we could give them to do. Everybody knew them.”

Peter’s work paved the way for his children to attend college, during which they continued to work at the store, but both ended up diverging from the family business. Their son went on to move to Colorado, initially working for a steel company, while their daughter became a corporate event planner.

“When they saw their father leaving at 7 in the morning and getting home at 9 at night, five days a week, and a shorter day on Saturday,

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Special Report WEALTH MANAGEMENT & ESTATE PLANNING I don’t think they were interested in that. There had to be an easier way to make a living than that,” Judy said. “ … There are many businesses that can be passed on but I don’t think they are in labor as much. Being in shoe repair, it’s a lot of labor.”

Sligh said it’s wise for business owners to begin having conversations early on with their children about the family business, but the tone of those conversations also matters.

“A very early age is none too soon to be telling stories about the business and getting them involved experientially,” he said. “One of the things that business owners need to remind themselves of is to not go home and feel free to just complain about the stress of the business. If we’re, in essence, educating the next generation of what it’s like to be in a family business, we’ll want to have at least as many stories around the dining room table about the good things happening in business as we have about worrying about the problems.”

Chiappetta Shoes is in rare company among family businesses, now operated by its fourth generation. Founded in 1921 by Italian immigrant Pasquale Chiappetta, Chiappetta Shoes

in Kenosha is now owned by the family’s third generation, Fred Chiappetta and his wife, Lori; and run by the family’s fourth generation, Tony (chief executive officer) and Nick (chief operating officer) Chiappetta.

From a very young age, Tony said he and his brother helped out around the shop, breaking down cardboard and setting up window displays.

He never felt forced to take on the business, but both Tony and Nick chose to officially join the company after graduating from the University of Wisconsin-Milwaukee in 2008 and 2010, respectively.

During college, Tony worked part time at a liquor store, in addition to the shoe store.

By the time he graduated, he was excited about returning to the family business full time to modernize the back-of-store processes.

Chiappetta has since launched an e-commerce website to encourage online sales. While competition is high amid online retail giants like Amazon and Zappos, Tony sees the longevity of his family’s business as an asset.

“I have a fantastic foundation to work off of,” he said. “It gives me a great opportunity to build on something.”

Chiappetta Shoes is owned by the third generation and run by the fourth generation of the Chiappetta family.

The father of two young boys, ages 1 and 3, Tony said he doesn’t plan to apply pressure on them to carry on the business.

“I’ll never push them into being a part of the business,” he said. “But it’s something I take great pride in; not many people can say they’re fifth generation. It’s something to be proud of and build on. My great-grandfather came here with nothing and started a business and I’ve always been proud of something that has had such a long run.” n

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Strategies FAMILY BUSINESS

Unstated pride Let your kids know how you feel about them

“ The missing ingredient, the secret sauce, of most family businesses is pride.

Invariably it is missing, at least in stated terms.”

STICK WITH ME ON THIS. It really does have something to do with family business…and is quite profound.

As a garage band lead singer for more than five years myself, I was and remain fascinated with the story of Freddie Mercury and his band, Queen.

The recent biopic “Bohemian Rhapsody” did nothing to dispel that interest.

Mercury, born Farrokh Bulsara in Tanzania of Indian immigrant parents, became Freddie Mercury after joining up with mates from another rock band and formed the iconic band Queen.

Farrokh was teased mercilessly as a child for his extreme overbite, a blessing which went a long way to explain his ability to bridge four octaves, but a curse as the four extra teeth created fodder

for the callous gristmill of critics.

The movie reviewed his relationships with his fiancé, and eventually the hundreds of alleged bisexual partners with which he engaged in recreational sex. All of this from the backdrop of a strict and conservative Zoroastrian (think three wise men of the Bible) religious background and a father that did not want his son going into the profession of music. The movie could really be viewed as a tragedy, as the hero dies from complications of AIDS. At this point I am sure you are asking about the family business angle…hang in there.

There is another tragedy in this film and it is one that family businesses know all too well. Alienation. Farrokh’s father wanted him to be a doctor, not a lead singer. Freddie eschewed this direction and even went so far as to change his name. He lived with the name Freddie Bulsara until he just couldn’t live with that image.

There was clear alienation between the father and the son, and this played out through the movie until one of the last scenes prior to Queen’s iconic explosion at Live Aid, where Mercury brings home his new partner to meet his parents and sister.

The family joins them for tea, and the father asks who this man is that Freddie has brought into the house. “He is my friend,” was the response. Freddie gets up to leave, expecting some negative response, and instead gets a loving embrace from his father.

This embrace was not a fiat on the lifestyle choices that Freddie made, but on the pride of father to son.

That’s it – pride.

The missing ingredient, the secret sauce, of most family businesses is pride. Invariably it is missing, at least in stated terms. Usually, but not always, this involves a failure of the father to tell his son or daughter, “I am proud of you.”

Those five words are unstated and this leads to hurt, anger and often, alienation. What child doesn’t need to hear of his or her father’s pride?

So why does this pride all too often get withheld? Why does it go unstated? I don’t know.

I can only offer conjecture, which includes everything from ego to masculinity and a myriad of issues in between. I have come to find that parents often end up competing with their

kids, and if that involves a family business, that competition can be brought into the workplace.

Kids, in return, are jealous of their parents and are eager to show them how much better the company will be under their leadership. Pride also seems to be an elusive emotion – again, especially for men.

It is demonstrated by many men in their pushing their child in sports, but that pride can often be rather selfish – living vicariously through the child and missed glory for the parent.

After the movie, I wrote a note to all three of my children telling them how proud I am of them.

I need to practice what I preach. Perhaps the kids thought this was Dad being sappy, but far be it that I depart this world without telling my kids a very basic belief: I am proud of them.

That doesn’t mean, like Mr. Bulsara, that I approve of everything they do or have done. But what it does mean is that I recognize that they have turned out to be good people and that I am happy for that.

As you turn over the keys of the company to the next generation, shouldn’t they know that you are proud of them, too? Your legacy really is in their hands when they take over that firm. And besides, who wouldn’t want a Queen in the family? n

DAVID BORST David Borst, Ed.D., is executive director and chief operating officer of Family Business Leadership Partners, a regional resource hub for family business. He can be reached at david@cuw.edu. biztimes.com / 31

Strategies INNOVATION

Innovate or Die Sellars brothers’ creativity drives problem-solving innovations COULD YOU HAVE EVER GUESSED that when you are using a Bravo kitchen paper towel or Toolbox shop towels that they were manufactured right here in Milwaukee by Sellars Absorbent Materials Inc.?

Sellars was started in 1985 by its president and founder, John Sellars, in his Milwaukee home. John was soon joined by his brother Bill as vice president of technology and manufacturing and later by his sister, Kathy Huntsinger, as human resources director. His brother Tom; wife, Liz; and parents, Bob and Libby, provided financial support and guidance.

After a successful career as a managing director of Piper Jaffray in Minneapolis and the co-founder and chair of the nonprofit Concerts for the Environment, Tom moved back in 1999 to help grow the family business, serving as chief executive officer and chairman.

The Sellars brothers have been creative forces in driving ongoing innovation, which has enabled the business to grow much faster than its competitors. The company’s “Green Innovation” technologies utilize sustainable manufacturing, which includes the use of recycled materials in the manufacturing of its high-quality products, with unique dispensing innovations that compete with virgin material-based products.

With innovations led by John and Bill, Sellars has 24 U.S. patents and 23 international patents, in addition to many trade secrets.

The Sellars brothers are hard-wired to be both entrepreneurial and creative. But what if you do not have such a creative background, and still want 32 / BizTimes Milwaukee FEBRUARY 4, 2019

to lead an innovative company? There are a number of practices you can imbed into your company’s culture to ensure it makes creative decisions.

An article in the November issue of the Harvard Business Review identified several ways true creativity and innovation can be achieved in new product innovation: 1. CHANGE YOUR PERSPECTIVE: We all suffer from “functional fixedness” (i.e., the beliefs and habits that we acquire in our professional discipline). Tom could see the opportunity in a segment of the paper products market primarily because he was an outsider.

2. STEP BACKWARD: We all love to be a Monday morning quarterback. But looking backward has its advantages. So take time out to take a hard look at what you have been doing and ask if there are alternative ways to approach the problem you’re trying to solve.

The famous chef Ferran Adria would often close his restaurant for months to reflect on new approaches to his culinary creations.

We don’t all have that luxury, but we can reduce the speed-to-market and take the time to test, reflect on and improve what we will be offering to our customers.

3. SMARTER TESTING, NOT FASTER: It’s far better to roll out products that are “just good enough,” rather than more ambitious solutions that require detailed and often final prototypes. It’s far better to develop a modest prototype or use digital tools to simulate how a product or service would work; or even a video demo, which is almost as effective in testing with customers as an actual prototype, which often gets very expensive.

4. SPEND TIME UNDERSTANDING THE PROBLEM TO UNCOVER NEW SOLUTIONS: I spent two years in the Peace Corps in Kenya. Most of my students and their families had no access to bank accounts and that forced them into an entirely cash economy.

Needless to say, that was a great barrier to

the growth of small businesses. Fast forward to 2017, when James Mwangi, founder of the Equity Bank, concluded that his bank’s very purpose was to solve a social problem – “lack of access to financial services.” His solution was first to create many small bank branches and put them in the back of Land Rovers that drove from village to village. That enabled more than 30,000 small retail outlets across the country to accept deposits and disburse cash. When cell phone technology became prevalent in sub-Saharan Africa, he introduced secure mobile payments. There are now 122 million active mobile money accounts in sub-Saharan Africa – more than any other region in the world!

The Sellars brothers and their team many times used their core strength to identify a product that could better solve a problem. They created “Green Innovations” with their paper and nonwoven materials and their dispensing, and they are an industry leader in e-commerce, with same day shipping.

If through innovation, dedication and teamwork, the Sellars brothers can build an internationally successful startup out of a garage in Milwaukee, then that is inspiration for all of us! n

DAN STEININGER Dan Steininger is president of Milwaukeebased Steininger & Associates LLC, which helps companies drive new revenues through innovation. His new book on innovation and creativity, “Moving Mountains Every Day” can be purchased on Amazon.

He can be reached at Dan@BizStarts .com.

A BRIEF CASE

How do I retain our best people?

Paul Eberle Chief executive officer Husch Blackwell LLP “Retention is something we spend a lot of time trying to understand and improve. In our industry, over 50 percent of the attorneys hired out of law school are no longer working at their firms after five years. This is a troubling statistic, and one that hasn’t really changed over the years.

“Focusing solely on this metric, however, doesn’t solve the problem. By this I mean, 100 percent retention at the five-year mark may not be the right goal. It’s okay to acknowledge that this industry – and our firm – is not the right place for everyone who starts here. Law firms are challenging and demanding places to work. For those who like the challenge, it can be a rewarding place to work. For some, after a few years, they conclude they would be a better fit in a different role. Some go in-house to join our clients’ legal departments, others go to work in government or nonprofits.

Helping our people find a better fit for their talents, temperament and career goals is a win – even if it hurts our retention metrics.

“That said, we have a lot of work to do to retain our best people, particularly women and diverse attorneys. We pay well; provide good benefits, including a recent improvement of our parental leave policy; we have nice offices; and we offer frequent free lunches. This isn’t enough. People want to feel valued, connected, respected, and work with people who share their goals and values. We retain our best people by building a better culture – something we focus on every day.”

John Kissinger President and chief executive officer GRAEF-USA Inc. “The No. 1 thing is to create a career path that is exciting. This means the work is professionally challenging, it is not repetitive or monotonous, and it has the potential to grow. Ideally, it will also require a high degree of creativity.

“This requires a conscious decision to pursue certain types of work, avoid other types, and not specialize in one or two areas. This decision has ramifications on how the firm is perceived, and how success is measured internally. I am not saying that a firm cannot provide successful career paths or retain people if it is more specialized, it just won’t generally motivate people who fit our culture.

“Once you provide the types of career paths that attract and motivate the people you want, you must continuously work on making the workplace fun. Not fun like a concert or a vacation, but fun enough that you really want to go there when you get up. Most people spend an incredible amount of time at work. If it is not challenging and fun, why do it? You create a fun environment by encouraging social interaction among employees. By allowing them to be individuals. By listening to them. By doing things in the community that let them know their company is making a difference. By making fun of yourself sometimes. Don’t get me wrong… work is serious business, and we are not at the office to play. That does not mean that we can’t be serious and have fun, too.”

Leslie Montemurro Owner and co-founder MojoFuco Inc. “Creating a consistent culture in our restaurants is essential to success, and the retention of great team members is a key component. While competitive salaries and quality of life is important, fostering a workplace environment where we all want to be is key. We strive to create a respectful, positive and family-like environment. Our management teams desire consistent messaging from us, as well as open and honest communication and transparency about their issues and concerns.

“We give management tons of support and training, but the real name of the game is giving them autonomy and the room to get out there and do their job. They know they can have a positive impact on the business, because they have been taught how. We have absolute transparency with financials, and that drives them to be efficient and hit their targets. They know their ideas will be heard.

“Allowing managers and staff to have a healthy amount of creative freedom and ability to express their individuality is also important. We tend to be pretty innovative and we believe people should ‘be as you are,’ free to express their individualism at work – within reason, of course.

“Getting to know our management staff is really important to us. We want to know what they are passionate about, what drives them. We then inspire our managers to do the same with their people. Get to know everyone, from the dish pit to the office. Caring about staff’s interests and who they are as people goes a long way in creating engagement and driving retention.” n biztimes.com / 33

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BizConnections PAY IT FORWARD

Brzezinski helps make Kathy’s House a home away from home Abby Brzezinski Principal Red Sky Partners LLC

JAKE HILL PHOTOGRAPHY

Nonprofit served: Kathy’s House Inc. Service: Volunteer and board member ABBY BRZEZINSKI, principal of Waukesha-based Red Sky Partners LLC, was on the hunt for a new volunteer opportunity when she happened upon an advertisement for Kathy’s House in 2017.

Immediately drawn to the mission of the Wauwatosa-based guest house for hospital patients and their families, Brzezinksi began pitching in to help the organization run smoothly.

“She was willing to do whatever was needed – cleaning, office support and event support – and got to know all aspects of Kathy’s House,” said Patty Metropulos, president and chief executive officer of Kathy’s House.

Aimed at alleviating the financial burden of traveling long distance for medical care, Kathy’s House provides affordable lodging for patients and their families at its 18-bed house, located at 600 N. 103rd St., near the Milwaukee Regional Medical Center campus.

“I, like most people, have experienced cancer within my friends and family,” Brzezinski said. “I’ve had a family member pass away from cancer. My brother-in-law just went through cancer within the last year. That’s what the vast majority of people (at Kathy’s House) are going through. So it hits home. I really feel for people who don’t have the means to stay somewhere nearby. Kathy’s House is an amazing resource for people.”

Brzezinski has since joined the Kathy’s House board of directors and its philanthropy committee, looking to increase her involvement at a critical time for the organization. Kathy’s House is in

the middle of a multi-year capital campaign – led by a $6 million gift from Froedtert & the Medical College of Wisconsin – to fund the construction of a new 31,000-square-foot, 36-room facility. The new house will double the capacity of the current building, which the organization leases at the St. Camillus Health Center.

Brzezinski has drawn from her property management background, along with her volunteer experience, to help guide the organization.

“It’s such an exciting time for Kathy’s House,” Brzezinski said. “I’m learning a lot and trying to contribute where I can. I think it’s been really valuable to have seen some of the ins and outs of how the house works, to be able to give input on board decisions and decisions for the new house going forward.”

“The more awareness we can bring to Kathy’s House and the services that the staff provides, the better,” she added. “It’s an amazing organization, seeing people receiving critical treatments that they might not otherwise be able to receive.” n

LAUREN ANDERSON Reporter

P / 414-336-7121 E / lauren.anderson@biztimes.com T / @Biz_Lauren

biztimes.com / 35

BizConnections PERSONNEL FILE CONSTRUCTION

CONSTRUCTION

MANUFACTURING

REAL ESTATE

Greenfire Management Services, Milwaukee

MSI General Corp., Oconomowoc

A. O Smith Corp., Milwaukee

Irgens Partners LLC, Milwaukee

Greenfire Management Services hired Pepi Randolph as vice president of business development. He will focus on maintaining and expanding relationships with new and existing customers in the commercial real estate industry and on developing Greenfire’s business and community leadership opportunities throughout Wisconsin and the Midwest.

Ken Krahe has been promoted to president of MSI General Corp.

Krahe joined the company in 2001.

He has played roles in the company’s entire design-build construction process. His hands-on experience and collaborative approach will guide the day-today and long-term leadership and growth of the company.

A. O Smith Corp. recently named Charles Lauber chief financial officer. In this role, Lauber will be responsible for all financial functions of the company, including financial reporting, treasury, investor relations, capital structure, risk management and capital allocation.

Irgens named Mark Nicholson the general manager of the BMO Tower, which is under construction in downtown Milwaukee. He will also serve as general manager for the current BMO office building.

Nicholson will serve as the point of contact for both buildings.

CONSTRUCTION

MSI General Corp., Oconomowoc John Kutz was recently named vice presidentsales & estimating for MSI General Corp. Kutz leads the sales and estimating team, driving strong partnerships with clients and contracting companies. He is responsible for business development and project management of the bidding, approvals and construction of projects generated and sold.

36 / BizTimes Milwaukee FEBRUARY 4, 2019

EDUCATION

Lutheran Urban Mission Initiative Schools, Milwaukee LUMIN Schools has named Shaun Luehring president and chief executive officer.

He is responsible for guiding the future strategic growth of LUMIN Schools while ensuring consistency in culture, academic rigor and strong enrollment throughout its network of schools. Luehring has more than 20 years of leadership experience in education and actively trains the next generation of leaders as an adjunct professor at Wisconsin Lutheran College and as a leadership coach for the Center for Urban Teaching.

MANUFACTURING

SOCIAL SERVICES

Kohler Co., Kohler

IndependenceFirst, Milwaukee

Kohler Co. recently named Natalie Maciolek vice president-general counsel and corporate secretary. In her new role, Maciolek manages and oversees all legal matters of Kohler Co., and has global responsibility for all company attorneys, legal IP, internal audit and corporate governance. She also participates on Kohler’s corporate operating committee and executive management teams and assumes board of director administration responsibilities as corporate secretary.

The IndependenceFirst board of directors has named Marcia Boucher president and chief executive officer.

Boucher attended Purdue University’s School of Philanthropy and is a certified fund raising manager. She was named Philanthropist of the Year by the Association of Fundraising Professionals for helping to raise more than $35 million to feed the hungry, house the poor, and help people with disabilities live a life of self-sufficiency.

Health Care Heroes

AROUND TOWN

BizTimes Media recently held its annual Health Care Heroes Awards event at the Italian Community Center in downtown Milwaukee.

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LISA GOUTHRO, ROBERT GOUTHRO and K.C. GOUTHRO, all of the Medical College of Wisconsin.

2.

JEROME GOTTSCHALL and PETER ZIEGLER, both of Versiti.

3.

SARAH PECOR of Concordia University and KAREN SCHAEFER of Aurora Health Care.

4.

FAY SPANO and LYNNE BRIGGS, both of Versiti.

5.

ADAM KINDRED of Elevate Inc. and KEN HARTENSTEIN of Rogers Behavioral Health.

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MELISSA UGLAND of Ugland Associates and KATIE SPARKS of Kathy’s House.

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BETSY STONE of Foley & Lardner LLP and MARY ALICE HOUGHTON of Grand Avenue Club Inc.

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WILLIAM PANFIL of Aurora Health Care, DAWN PANFIL of Hair and Body Solutions Salon and Spa, and ROBIN KOUTECKY of Aurora Health Care.

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KATIE SPARKS, PATTY METROPULOS, JUDY VOGEL and LAURA VOGEL WOODS, all of Kathy’s House.

Photos by Jake Hill Photography

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Hispanic Collaborative Local business and community leaders recently launched the Hispanic Collaborative, an initiative to improve economic opportunities and representation among Latinos in the region, at the University Club in downtown Milwaukee.

10. GENYNE EDWARDS of P3 Development Group and MARIA MONREALCAMERON, retired CEO of the Hispanic Chamber of Commerce of Wisconsin.

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11. GIL LLANAS of the Milwaukee Area Workforce Funding Alliance and PATTY CADORIN of BMO Harris Bank.

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12. NELSON SOLER of Multicultural Entrepreneurial Institute Inc.; GENO VALDES of Maglio Companies; ANDY NARRAI of Reinhart Boerner Van Deuren; and IVAN GAMBOA of Tri City National Bank.

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13. GLADYS MANZANET of Northwestern Mutual Life Insurance Co. and JOAQUIN ALTORO of Town Bank.

14. SANDRA DEMPSEY of Telemundo Wisconsin and KEVIN TURNERESPINOZA of Journey House.

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15. YVONNE BRODSKY of GE Healthcare and MARC ANDRACA of Johnson Controls International plc.

Photos by Lauren Anderson biztimes.com / 37

BizConnections VOLUME 24, NUMBER 20 | FEB 4, 2019

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 | advertising@biztimes.com EDITORIAL: 414-336-7120 | andrew.weiland@biztimes.com REPRINTS: 414-336-7100 | reprints@biztimes.com PUBLISHER / OWNER Dan Meyer dan.meyer@biztimes.com

SALES & MARKETING

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 Maredithe Meyer maredithe.meyer@biztimes.com REPORTER Arthur Thomas arthur.thomas@biztimes.com

— This photo is from the Milwaukee Public Museum’s Photo Archives collection.

COMMENTARY

Brewers doing what they have to do IS NOTHING SACRED ANYMORE? I guess not. Not even for America’s national pastime.

For the second year in a row, the Milwaukee Brewers have stunned their fans with plans for an iconic name change at the ballpark.

Last year it was the Famous Racing Sausages. The Brewers surprised many when they announced Milwaukee-based Klement Sausage Co., the longtime sponsor of the sausage mascots and their in-game race, was being replaced by Sheboygan Falls-based Johnsonville Sausage, a larger company that evidently offered the Brewers a deal they could not refuse.

Many fans were upset with the switch and felt the Brewers were being disloyal to Klement’s.

But that was nothing. The Brewers recently announced a much bigger sponsorship change.

Miller Park, the home of the team since 2001, will get a new name in 2021. The stadium naming rights sponsorship with MillerCoors 38 / BizTimes Milwaukee FEBRUARY 4, 2019

ends after 2020, and the new sponsor will be Madison-based American Family Insurance.

The new name for the ballpark has yet to be determined. How does American Family Field sound?

A lot of Brewers fans are upset that the place where they enjoyed watching their favorite team play for almost 20 years will soon be called something else. Fans have an emotional attachment to their team’s home park, and its name is all part of that. Change is hard, especially for a cherished tradition. The link between the Brewers and Miller made so much sense.

Financial terms of the deal were not disclosed, but it’s safe to assume American Family offered the Brewers much more than MillerCoors, or anyone else, was willing to. The current naming rights deal for Miller Park was worth $40 million over 20 years. In a statement, MillerCoors said American Family made an “incredibly rich offer” to the Brewers.

Despite the disappointment fans feel about the stadium name change, the Brewers are doing the right thing.

Milwaukee is the smallest market in Major League Baseball. That puts the Brewers at a serious competitive disadvantage with the other teams. The biggest challenge is local television

ACCOUNT EXECUTIVE Maggie Pinnt maggie.pinnt@biztimes.com ACCOUNT EXECUTIVE Christie Ubl christie.ubl@biztimes.com INSIDE ACCOUNT EXECUTIVE Amanda Bruening amanda.bruening@biztimes.com SALES INTERN Tess Romans tess.romans@biztimes.com

ADMINISTRATIVE COORDINATOR Sue Herzog sue.herzog@biztimes.com

PRODUCTION & DESIGN

INTERN REPORTER Madison Goldbeck madison.goldbeck@biztimes.com

This photo, taken circa 1930, shows 124 E. Wells St. in Milwaukee. Several businesses can be seen, including T.W. Barto Cigars & Tobacco, a tailor, and Main Express & Storage Co. An advertisement encourages residents to re-elect Louis M. Kotecki city comptroller. The site is now the Trammell Crow Pavilion entrance to The Milwaukee Repertory Theater.

ACCOUNT EXECUTIVE Molly Lawrence molly.lawrence@biztimes.com

ADMINISTRATION

REPORTER Alex Zank alex.zank@biztimes.com

T.W. Barto

DIRECTOR OF SALES Linda Crawford linda.crawford@biztimes.com

GRAPHIC DESIGNER Alex Schneider alex.schneider@biztimes.com ART DIRECTOR Shelly Tabor shelly.tabor@biztimes.com

Independent & Locally Owned — Founded 1995 —

revenue. Based simply on population, teams in much bigger markets are able to bring in a lot more revenue in their local television contracts than the Brewers can.

In order to have the financial resources to field a team that can compete with the Chicago Cubs, Los Angeles Dodgers and others, the Brewers need to take advantage of every revenue opportunity they can. Miller Park’s retractable dome is a big help in boosting attendance, which has benefitted the Brewers tremendously.

But that’s not enough. The Brewers can’t afford to maintain the status quo and pass up opportunities to increase sponsorship revenues.

Fans grow attached to the names of the mascots and the ballpark. But these corporate sponsorships are about money, period. And, like it or not, teams need money to compete in professional sports. n

ANDREW WEILAND EDITOR

P / 414-336-7120 E / andrew.weiland@biztimes.com T / @AndrewWeiland

LILA ARYAN PHOTOGRAPHY

the LASTWORD

GREG L ARSON |

PRESIDENT

Teach students to build something Greg Larson is president of Waukesha-based Wildeck Inc., a manufacturer of industrial mezzanines, guard rail and material handling equipment. It’s important to get kids interested in manufacturing, he says.

“Manufacturing is the backbone of the American economy, responsible for producing more than 18 percent of the world’s goods. Despite this substantial market share, industry executives across the nation are facing a dilemma that threatens this stronghold: attracting and retaining qualified talent.

“Across the country, high schools are under an increasing amount of pressure to cut costs. As a result, investments in trade and shop classes are sacrificed and students are deprived of the satisfaction that comes from creating something tangible with their hands.

“How do we as executives, managers and leaders bridge this widening skills gap?

“I believe that the first step starts with challenging pervasive misconceptions. The upcoming workforce desperately needs to experience the pride that comes from transforming materials into a finished, usable product. They need to know that skilled, innovative employees are wanted to support the new technologies (i.e., 3D printing, robotics, predictive analytics) rapidly changing the manufacturing landscape. Factory tours, speaking engagements, school partnerships and internships provide irrefutable evidence that exciting and rewarding careers exist in manufacturing.

“Additionally, paid on-the-job training programs and continuing education opportunities

Wildeck Inc. Waukesha Industry: Manufacturing Employees: 215 wildeck.com communicate an invaluable message to prospective and current employees: you are both wanted and needed here. In a world that increasingly trends toward segmentation and isolation, a sense of community and belonging is a novelty.

In a competitive employment market, initiatives of this kind shine a spotlight on an organization.

“The future is never certain, but there will always be a need for those that can build and create.” n biztimes.com / 39

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