BizTimes Milwaukee | May 1, 2017 by BizTimes Media

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

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

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Additional speakers, plus information-packed roundtable sessions round out the event. Roundtable sessions include these topics and more: • • • • • •

Transitioning to the Next Generation Labor and Employment Issues Funding and Financing Growth How to Organize Your Family Meetings Leadership Development Wealth Preservation & Leaving a Legacy

• • • • • •

Establishing the Family Business Culture Crucial Conversations and Accountability Exit strategy - ESOPs, Private Equity, Strategic Buyers Compensation & Incentive plan best practices Incorporating Non-Family member leadership Innovation and Growth Strategies for long-term success

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Attendee comments from 2016: “Found the keynote speaker to be excellent, the panel was also appropriately sized, diverse, and of good quality.”

“The keynote speaker was interesting. I very much enjoyed the format of the roundtables and break out sessions.”

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inside

May 1 - 14, 2017 HIGHLIGHT S Now 4 Aurora plans three big projects in region.

Coffee Break

A conversation with Tim Wallen, chief executive officer of MLG Capital.

Made in Milwaukee

Power Test keeps the focus on customers.

WHAT WILL

KEEP THE

The Good Life

CONSTRUCTION

Julia Taylor explores a new palette.

Innovations 10

BOOM GOING

Dynamic Solutions attracts mosquitoes so you don’t have to.

S TR ATE GIE S Sales Christine McMahon 26 Innovation Dan Steininger 27 Management Susan Wehrley 28

BIZ CONNECTIONS

C OV E R S T O RY A N D S P E C I A L R E P O R T:

BUILDING S & CON S TR U C TION

In addition to the cover story, coverage includes a report on record high housing starts and a discussion with Mandel Group about its office development strategy.

Biz Notes Personnel File SBA Loans BizTimes Around Town The Last Word

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Founded in 1995, BizTimes Milwaukee provides news and operational insights for CEOs, presidents, owners and other top level executives at companies in southeastern Wisconsin (Milwaukee, Waukesha, Ozaukee, Washington, Racine, Kenosha, Walworth and Sheboygan counties). Subscription Customer Service: BizTimes Milwaukee, 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120, USA, Phone (414) 277-8181, Fax (414) 277-8191, circulation@biztimes.com, www.biztimes.com

BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 23, Number 3, May 1 - 14, 2017. BizTimes Milwaukee is published bi-weekly, except two consecutive weeks in December (the second and third weeks of December) by BizTimes Media LLC at 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120, USA. Basic annual subscription rate is $42.00. Single copy price is $3.25. Back issues are $5.00 each. Periodicals postage paid at Milwaukee, WI and additional mailing offices. POSTMASTER: Send all UAA to CFS. NON-POSTAL AND MILITARY FACILITIES: send address corrections to BizTimes Milwaukee, 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120. Entire contents copyright 2017 by BizTimes Media LLC. All rights reserved.

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leading edge NOW

Aurora plans three big projects in region

ilwaukee-based Aurora Health Care is planning three major facility projects in southeastern Wisconsin. Aurora recently announced it plans to build a new, $324 million hospital in Kohler. The hospital, which would replace the Aurora Sheboygan Memorial Medical Center, would be built on a 56-acre site northwest of Union Avenue (County Road TT) and South Taylor Drive, between the University of Wisconsin-Sheboygan campus and the Acuity corporate headquarters, along I-43. The site is owned by Kohler Co. Aurora announced it has signed a letter of intent with Kohler Co. to lease the property. Aurora plans to build a hospital, outpatient surgery center and medical office building on the site. It plans to open the facility in 2021. Aurora has been planning to replace the Sheboygan Memorial Medical Center at 2629 N. Seventh St. in Sheboygan for years, but the project has evolved, gotten bigger and been relocated. “The greater Sheboygan community deserves the best, and we’re committed to delivering just that – high-quality, cost-effective care,” said Carrie Killoran,

executive vice president of Aurora’s central region, which includes all of Sheboygan County. “We’ve been listening to the community and, with this new site, we hope to have an opportunity to provide state-of-the-art health care in a convenient, central location. We thank the Kohler Co. for making this parcel of land available, and we also look forward to working with the Village of Kohler and City of Sheboygan to help ensure the health care needs of both communities are met for generations to come.” Aurora also is planning a $130 million medical office building and an outpatient care center west of I-94 in Kenosha. The project would include a 100,000-square-foot outpatient care center and a 100,000-square-foot, threestory medical office building. The outpatient center would include primary care, outpatient surgery, rehabilitation services, imaging, laboratory services, occupational health, specialty care and a pharmacy. The development is planned for five adjacent parcels along the frontage road west of I-94, between 60th (Highway K) and 71st streets. Doug Koch, president of Aurora’s Racine, Kenosha and northern Illinois

The Aurora Sheboygan Memorial Medical Center would be replaced by a new hospital in Kohler.

patient service market, said the system has a growing number of patients in the Kenosha area, which is why it wants to build the new facilities west of the interstate. Finally, Aurora recently announced it will build a $55.5 million ambulatory surgery center and medical office building at the 84South mixed use development west of South 84th Street,

between I-894 and West Layton Avenue, in Greenfield. The 130,000-square-foot, multi-story facility will include general surgery, orthopedics, pediatrics, GI, pain management and urology. An outpatient imaging center, sports health and rehabilitation, specialty physician clinic and dispensary pharmacy also are planned.

——Andrew Weiland and Corrinne Hess

SOCI AL M E D I A S T R AT E GI ES

The future of social automation Automation is an evolving part of our daily lives. From direct deposit to robotic vacuums to thermostat control via smartphone, automation helps make our lives easier and more efficient. The same concept applies to social media. Social automation at its simplest includes scheduling posts to go out at a certain time. But, there’s so much more to it than that. The future of social automation embraces the rise of a type of artificial intelligence that can have a conversation with someone, also known as chat bots. Facebook rolled out chat bots for its Messenger platform in April 2016 and it’s time for brands to jump on board. Facebook bots were introduced as an automated subscription that can provide content like weather and traffic updates, customized communication like receipts and shipping notifications, and 4

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live automated messages, all through Facebook Messenger. Consumers are communicating with businesses directly via Messenger more than a billion times each month. As this is becoming a standard form of communication, automated messages and chat bots can be a great resource for businesses. Chat bots can enhance a company’s customer service. One-third of people prefer social media over a phone call for customer service. Facebook Messenger provides another avenue for people to ask questions and get answers quickly on their mobile device, on a more personal level. Additionally, businesses can send out news updates, alerts, new blog posts and important information to the people who already like or subscribe to their page. Taking it a step further, M ay 1 - 14, 2 017

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chat bots can be designed to send new updates to people who engage with a company’s Facebook page by commenting on or liking a post or ad, as a way to garner new fans and potentially new business. Setting up a basic Facebook chat bot is free and simple with a chat bot creation tool. As with any form of marketing, social automation needs to make sense for your business. Throwing a standard ad into Facebook Messenger will not yield the same results as having a well thought-out automation campaign. So take note: the future of social automation is upon us and it’s time to determine if your business can benefit.

——Amanda Wambold is social media strategist at Milwaukee-based Hoffman York.

leading edge COFF E E B R E A K

POLITIC AL BEAT

Ryan says House in ‘concepts stage’ of new health care bill BY WISPOLITICS.COM

What was the smartest thing your company has ever done? “In some ways, the private commercial real estate industry is dysfunctional. People take money out of a diversified stock portfolio and invest into one to two real estate assets. The concept of diversification is usually ignored when investing in private real estate. In MLG’s private real estate funds for investors, we have a unique strategy that allows investors to be diversified by asset class and geography.”

What’s new at your company in 2017? “We recently introduced our third diversified MLG Private Real Estate Fund, with $150 million of equity. Fund III targets quarterly distributions to investors with targeted net returns of 13 percent to 15 percent per year.”

What are your company’s main challenges? “It’s really hard to find great investments. We’ve addressed this challenge by having a dual sourcing strategy that includes MLG’s historic acquisition markets of Wisconsin, Texas and Florida and our private equity strategy focusing on real estate investments in about 15 more states. We’ve generated a great amount of deal flow to selectively consider 50 to 55 deals per month, on average.”

What’s the hottest trend in your industry? “The growth and development of real estate crowdfunding. While access has become common and easy, investors should be aware of the risks of these crowdfunding platforms. What due diligence is

being done on these investments? What is the business deal with investors? Are fair fees being charged? Are the assumptions reasonable? Is the debt excessive and risky?”

Do you plan to hire any additional staff or make any significant capital investments in your company in the next year? “Selectively hiring top talent is critical to our business. For example, we’ve added over 100 employees in our Brookfield and Dallas offices in the last three years. With the launch of our latest fund, we will target investing into $300 million of real estate investments this year.”

What’s the funniest thing that ever happened to you in your career? “We once had a large 150-foot-high top soil pile. My partner Mike Mooney and I got the bright idea we could drive the company suburban over the top of it. Needless to say, it got stuck at the top and we had to call AAA to give us a tow.”

What do you like to do in your free time?

Tim Wallen Chief executive officer MLG Capital 13400 Bishop’s Lane, Suite 270, Brookfield www.mlgcapital.com Industry: Private real estate investments Employees: 37 w w w.biztimes.com

“I actively spend time with my family. My wife, Julie, and I have been blessed with eight children (four biological and four adopted), so we are involved in their lives. We also have a passion to serve the needs of kids at risk. I am on the board of Lifesong for Orphans, which provides orphan care for over 5,700 kids in 11 countries. I’m also on the board of Positive Programs for Families, which serves the needs of kids and families in Milwaukee. I enjoy golfing, skiing and a good glass of wine.” n

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House Speaker Paul Ryan (R-Janesville) acknowledged that Republicans’ efforts to undo the Affordable Care Act are stalled for now. “We’re all at the concepts stage right now – but productive conversations” are occurring, Ryan told a WisPolitics. Ryan com audience in Washington, D.C. “It’s all about, ‘How do we get there?’” Ryan said the conservative Freedom Caucus, moderate Tuesday Group and the rest of the Republicans who make up the House Republican Conference are almost in agreement on a plan. “On that bill, we’re basically 90 percent of the way there,” Ryan said. “To pass a bill we need to be 95 percent of the way there. Sometimes, you go to the floor when you’re at 90 hoping you’ll get to 95. But that’s why I pulled the bill (on March 24), because I want us to keep talking.” Ryan insisted that although he originally envisioned passing an ACA repeal bill by April, the House is “not really” under the gun. “We’re not going to put some sort of artificial deadline, especially when we don’t have to… to get it right,” he said. Republicans’ inability to quickly coalesce on a plan is a symptom of not controlling the White House for eight years, Ryan said. “We are going through the inevitable growing pains that we must go through to convert from being a 10-year opposition party to being a governing party within the span of four months,” Ryan said. “And so, did I ever think it would go perfectly? No, of course not. Two-thirds of our members have never served with a Republican president before.” Ryan dismissed the conventional wisdom that Republicans have to pass health care legislation before moving on to other priorities, such as tax reform, or even necessities like keeping the federal government funded and not allowing the U.S. to default on its debts. Wispolitics.com is a media partner of BizTimes Milwaukee.

BY TH E NU MBERS

312.2

million

Five Milwaukee area television stations will receive a total of $312.2 million from a Federal Communications Commission broadcast spectrum auction.

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BizExpo Power Test Inc. N60 W22700 Silver Spring Drive, Sussex Industry: Engine testing equipment Employees: 75 www.powertestdyno.com

Power Test has developed a portable test cell that is intended for military applications and other customers seeking flexibility.

Power Test keeps the focus on customers Pat Koppa has his 2017 business plan diagramed on a whiteboard in his office; but instead of featuring sales goals or new business opportunities, the president of Sussex-based Power Test Inc. has the Lombardi sweep marked out in Xs and Os. “One of my biggest challenges is focus. We’ve got a lot of irons in the fire,” Koppa said. “We’re a creative company, which leads to passionate ideas and an appetite to do things.” The idea of a simple play executed extremely well, as Vince Lombardi’s Green Bay Packers did with the power sweep in

ARTHUR THOMAS (414) 336-7123 | Twitter: @arthur8823 arthur.thomas@biztimes.com

the 1960s, is meant to remind Koppa and his team to remain focused on fundamentals, the blocking and tackling, while they also pursue new initiatives. For Power Test, a maker of dynamometers and other engine testing equipment, those initiatives can be aimed at many groups, including customers, employees and the wider community. Building dynamometers, which measure the power output of an engine, means customers aren’t likely to return to purchase the same equipment. They may add different sizes, or transmission or hydraulic testing equipment, but most customers are only going to buy one dynamometer in their lifetime. Power Test is actually in the process of replacing the first dynamometer it built 40 years ago, not because it doesn’t work but because the customer is moving to a new facility and has the budget for an upgrade. “The big thing is we’ve got to have customer loyalty and we do that through great customer service, because we know how important that is,” Koppa said. “You’ve got to be there for them when they have a problem.” Serving customers requires hiring and retaining the right people, and Koppa said the company’s culture has enabled it to attract quality employees.

“A lot of times it’s not because we’re the highest paying – we’re competitive – but what we want to do and what we want to accomplish resonates with them,” he said. In practice, the culture includes things like paying employees to work out at an on-site fitness center with a trainer, fitness testing through which employees can earn up to $1,000 and Friday company cookouts in the summer that this year will feature Koppa cooking for the winners of a fitness challenge. The emphasis on exercise helps keep employees healthy, active and productive, but it also has the added benefit of holding down insurance costs. The culture also extends to the wider community. Power Test, which commits a percentage of its revenue each year to charity, offers employees eight hours of time off each year to go work at a charity and works with customers to donate money to a charity of their choice. While those things all contribute to Power Test’s culture, they don’t directly impact the actual product the company produces. Customers may not purchase and install engine test cells on a regular basis, so Power Test seeks to leverage its expertise with design and installation services. For customers looking for a more flexible option, Power Test offers a portable test cell that features all the equipment needed for testing in two 40-foot containers. “There are some customers for which flexibility and mobility are important and we have a proven history with this product,” Koppa said, noting it was initially developed for the military. Other developments have included a standalone hydraulic test stand, fully automated hydraulic test center and chassis dynamometers with improved safety features. “We try for incremental improvements, continuously looking at how we make things and listening to our customers’ feedback, but we also come up with innovations that are new,” Koppa said. Listening to customers has been an important focus as Power Test has had to manage through downturns in industries like mining and oil and gas in recent years. “Our focus has been on maintaining the relationships with our customers that we’ve had, continue to provide outstanding support,” Koppa said. “In the meantime, we are also finding new customers.”

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BizTimes Media will host the 2017 BizExpo on Wednesday, May 24, from 7 a.m. to 7 p.m. at Potawatomi Hotel & Casino, 1721 W. Canal St. in Milwaukee. Attendees at the 13th annual BizExpo can connect with hundreds of businesses, meet thousands of other professionals and learn from the area’s top business leaders. The day also includes the Women in Business breakfast, the Bravo/I.Q. Awards luncheon and the BizBash Cocktail Reception. Register in advance for free admission to the show floor and seminars. For more information or to register, visit www.biztimes.com/bizexpo.

BOOK REVIEW

‘Doughnut Economics: Seven Ways to Think Like a 21st Century Economist’ In her book, “Doughnut Economics: Seven Ways to Think Like a 21st Century Economist,” self-proclaimed “renegade” economist Kate Raworth sets out seven key ways to reframe our understanding of what economics is and does. Raworth, who is a senior visiting research associate at Oxford University’s Environmental Change Institute, writes that breaking the universal addiction to growth and redesigning money, finance and business to serve people will create an economy that is regenerative by design. “Doughnut Economics” offers a new compass for guiding global development, government policy and corporate strategy, and sets new standards for what economic success looks like. Raworth studies ecological, behavioral, feminist and institutional economics to address this question: How can we turn economies that need to grow, whether or not they make us thrive, into economies that make us thrive, whether or not they grow? “Doughnut Economics” offers an analysis and inspiration for a new generation of economic thinkers. It is available at www.800ceoread.com for $22.40.

leading edge NON P RO F IT N E W S

THE GOOD LIFE

Former Kohl’s exec pledges $8 million to Children’s Hospital The Herma Heart Center at Children’s Hospital of Wisconsin has received an $8 million challenge gift from former Kohl’s Corp. executive and board member John Herma and his wife, Susan. The Hermas will match up to $8 million in gifts designated to the Children’s Hospital heart program through Dec. 30. Money from the challenge gift will be used to support research and clinical innovation, with a focus on congenital heart conditions and programs to improve quality of life for heart patients, according to Maryanne Kessel, who works on fundraising for the center. Kessel began her career as a pediatric nurse and was on the team that helped treat the Hermas’ daughter, Leigh, in the 1980s. Leigh was diagnosed with hypoplastic left heart syndrome, in which several structures on the left side of the heart form incorrectly. At the time, nearly 90 percent of patients with the condition didn’t survive and Leigh passed away before reaching 3 months of age. By 2001, all of the patients who had surgery for the condition at Children’s were able to go home.

——Arthur Thomas

Exploring a new palette When Julia Taylor, president of the Greater Milwaukee Committee, took a watercolor class while on vacation last October, she did not expect the activity to become a lifelong hobby. Taylor has always enjoyed art. Growing up, she drew portraits at county fairs in Indiana and created illustrations for local newspapers. She even graduated from college with a minor in art. “But I mostly was interested in drawing and sketching,” she said. “I had never tried watercoloring before.” Seven months after the class and after studying the technique through videos and books, Taylor displayed and sold her watercolor paintings at her first art show – “The Occasional Artist Series” at the North Point Lighthouse. Her second and most recent show, “Watercolor Now,” was on display at the Hudson Business Lounge from January to March. She describes her work – mostly depicting animals, flowers and nature scenes – as “representational, with a loose style.” Watercolor painting also has given Taylor a way to relieve day-to-day stress. “I think the great thing about creating any piece of art is that it is the only thing you can think about while you’re doing it,” she said. “And when it’s done, it’s done. You can do a watercolor painting in 20 minutes or a week.” Taylor plans to practice and learn about watercolor

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One of Taylor's watercolors. Taylor for the rest of her life. She currently takes a Korean brush painting class at the Milwaukee Institute of Art & Design and will spend time this summer at Ox-Bow School of Art in Saugatuck, Michigan, enrolled in the School of the Art Institute of Chicago’s summer program. “I like having people get to know me in a different way,” Taylor said. “Seeing people get to know me as an artist has been really fun.”

——Maredithe Meyer

BRIDGE TO BUSINESS — FOR PEOPLE WHO CAN ACTUALLY BUILD ONE. Connecting engineers with business know-how.

Bridge to Business for Engineers is an immersive, 14-day experience to give early-career engineers business fundamentals. The course is offered by Marquette University’s Opus College of Engineering and College of Business Administration and sponsored by Milwaukee-based manufacturer Rexnord.

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Students receive a blend of classroom and real-world interactive learning opportunities, and study the integration of business disciplines — accounting, finance, information systems, legal/regulatory, marketing, management, and supply chain management — all with an engineering overlay. Register now for one of two sessions: Session 1 begins May 22. Session 2 begins June 26. Learn more at go.mu.edu/bridge2biz. Phone: 414.288.EXEC (3932) Email: biz@marquette.edu

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leading edge G ET T I NG TH E R E

BR EA K ING G ROUN D

Amanda Bandkowski Luther Manor 4545 N. 92nd St., Wauwatosa Age: 29 Hometown: Wauwatosa Education: Associate degree in occupational therapy assistant from Milwaukee Area Technical College Current position: Manager of adult day programs Previous position: Program manager of adult day program, Milwaukee Center for Independence

»» What are your job responsibilities? “I oversee two adult day programs: Wauwatosa, the main campus, and also a location in a church in Grafton – St. John’s Lutheran Church. It’s the day-to-day operations, so it’s overseeing my staff at both locations, helping to get clients in the door, doing biannual reviews of each client just checking up on their goals, meeting with the care team, spending time with staff, make sure we’re following all of our state regulations.” »» Who takes advantage of adult day programs? “Individuals living in their home that just need a little bit of extra care or just need time getting out of their home and interacting with others. They meet other people, socialize, do activities, go on outings, get out of the house.”

Fowler Lake Condos A $35 million condominium project will break ground near Fowler Lake in Oconomowoc in July or August. The 50-unit condominium building, to be called Fowler Lake Village, is planned east of city hall. Jeff Seymour is developing the project, and Milwaukee-based KORB + Associates Architects and Pewaukee-based VJS Construction Services also are part of the development team.

——Corrinne Hess

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Re: United Airlines “This industry insider said she would not fly United because ‘Unhappy people make mistakes.’” — Dennis Ellmaurer, Central File Inc.

Re: The Great Lakes “If business and economics prevailed, as opposed to politics and resistance to change, the (St. Lawrence) Seaway would be closed forthwith.” — John Torinus, Serigraph

Re: Mass transit and poverty

Should the government ban airlines from overbooking flights?

Yes: 54%

No: 46%

“There is a huge gap between the haves and the have nots. The industrial and manufacturing jobs are being created beyond the limits of the city and its ability to provide transportation.” — Rev. Willie E. Brisco, Milwaukee Innercity Congregations Allied for Hope

Traffic was busy at The Corners of Brookfield, which attracted about 15,000 shoppers on its opening weekend.

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innovations Dynamic Solutions attracts mosquitoes so you don’t

t is part of summer in Wisconsin: At some point, a stretch of wet weather will be followed by a few hot and humid days. Before long, peaceful evenings on the back patio are routinely interrupted by the need to swat mosquitoes away. That is, unless you are ARTHUR THOMAS (414) 336-7123 arthur.thomas@biztimes.com Twitter: @arthur8823

in the backyard of James Hunter, chairman of Milwaukee-based Dynamic Solutions Worldwide LLC. Hunter joked that with the four DynaTrap mosquito traps he has, his neighbor probably doesn’t

have any mosquitoes either. DynaTrap is Dynamic Solutions’ flagship product. It is a mosquito trap that uses ultraviolet light at a specific spectrum, titanium dioxide-coated materials and naturally occurring carbon. The combination creates carbon dioxide through a photocatalytic reaction and, along with heat and moisture, mimics the factors that attract female mosquitoes to humans. Instead of landing on your arm and drawing blood, a fan sucks the mosquitoes into a basket, where they dehydrate and die. It’s a product Hunter and Dynamic Solutions acquired from Racine-based manufacturer Dynaseal Inc. in 2010. Dynaseal owner Juan Rocha had found the technology behind DynaTrap in South

Korea and has since joined Dynamic Solutions as president and a partner in the business, Hunter said. The initial DynaTrap model could cover a roughly half-acre area. An updated model now covers a 1-acre area. “We found that we could increase the size of the trap and increase the reach,” Hunter said. The bigger trap has a higher wattage bulb that generates more light and heat, a larger fan and, of course, a big basket to hold more mosquitoes. “The basic technology has stayed the same,” Hunter said. The 1-acre model has become the company’s most popular and sells for $209. There are also smaller outdoor and

Dynamic Solutions Worldwide Milwaukee Innovation: DynaTrap mosquito trap www.dynatrap.com

indoor models. DynaTrap is sold online, at mass retailers like Ace Hardware, Sam’s Club, Costco and Menards, and also through QVC. The devices are manufactured in China and then shipped directly to retailers or a third-party logistics firm in Menomonee Falls. Hunter said the goal is for Dynamic Solutions to have its own

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3/29/2017 9:48:42 AM

warehouse and possibly manufacturing capability, too. Selling mosquito traps is an admittedly seasonal business and that has created a roadblock to Dynamic Solutions expanding its own facilities. “If we got to the point where we would have more uniform sales throughout the year, it would probably be more economical for us to have our own distribution warehouse and possibly our own manufacturing,” Hunter said. Flattening the seasonality would require finding products to counter the peak sales season of DynaTrap or expanding sales of the flagship product into the southern hemisphere, Hunter said. In the meantime, the company is looking to grow DynaTrap sales, investing in marketing, including social media, search and radio, especially in the lead up to recently being featured on QVC. Hunter said the majority of new customers are attracted through word-of-mouth. “If people buy the product or somehow acquire the product and use it, a very, very high percentage are pleased,” he said.

But Hunter also acknowledged the company has discovered a need to educate consumers about how to use the traps. “There are some people that no matter what we do, we can’t please them because they expect to put the trap up today and all the mosquitoes will be gone tomorrow; that isn’t the way it works,” he said. The trap works by killing female mosquitoes before they can lay eggs, thinning out the population in the area over time. Some users only turn the trap on at night, Hunter said, meaning mosquitoes born during the day could easily be missed. He also recommends users set traps up at least 20 feet from where they’ll be sitting to avoid attracting mosquitoes and having it off the ground to prevent other animals from interfering. “There’s some technique in how you abate the mosquito population,” he said. Even with his four traps, Hunter can still occasionally have problems with mosquitoes. He once was walking to his garden hose when he was bit. He looked down and saw a small amount of stand-

DynaTrap uses UV light and titanium dioxide to attract mosquitoes.

ing water in a tray on the hose reel, just enough for a mosquito to lay eggs in. “It may even just take a bottle cap

turned upside down,” he said, noting users have to deal with standing water for traps to work their best. n

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special report

real estate

& development

WHAT WILL

KEEP THE

CONSTRUCTION

BOOM GOING ?

outheastern Wisconsin has sustained a construction boom for the past five years, particularly with multifamily housing developments being built in and near downtown Milwaukee. And while there are signs the market may be maturing as some developers and banks are putting the brakes on future projects, development and construction industry experts are confident the industry has not hit its peak as other areas, including senior living and industrial, continue to grow.

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cover story

JON ELLIOTT OF MKE DRONES LLC

❱

Left: In the foreground, construction continues on Northwestern Mutual's 34-story apartment tower. Behind the site is the new Northwestern Mutual office tower. Right: The new arena for the Milwaukee Bucks is under construction downtown.

BY CORRINNE HESS, staff writer

“We are still seeing growth, but it is a more strategic, thought-out process,” said Ben Goetter, general manager and director of projects for M.A. Mortenson Co.’s Brookfield office. “No one is jumping into the ground with a shovel. Now it is (based on) what makes sense to the market and to corporate budgets.” Over the past 18 months, the diversity of Minneapolis-based Mortenson’s portfolio has broadened, Goetter said. The company, which was selected last year to manage the construction of the new $524 million Milwaukee Bucks arena, continues to have a robust health care and corporate business, but also has expanded its senior living and industrial business. Mortenson currently is working on a 192,000-square-foot expansion project at the St. Camillus campus in Wauwatosa that will add 72 units and a Jesuit residential facility with 48 units to the senior and long-term care complex. Over the past two years, Mortenson also has completed a conference center and a 1.1 w w w.biztimes.com

million-square-foot distribution center for Uline in Pleasant Prairie. “I think the key is to stay nimble,” Goetter said. “Apartment construction has slowed down, but I think there is still plenty of opportunity to bring housing downtown. Right now, we are seeing an upswing in senior and industrial projects, but the energy is downtown, and people want to live by that energy.” The local construction boom took off in Ben Goetter 2013, when Northwestern Mutual Life Insurance Co. announced it would construct a $450 million, 32-story tower at its headquarters campus in downtown Milwaukee, triggering confidence in both the city’s development and business communities. What has followed has been an unprecedented number of building projects either underway or planned in downtown Milwaukee and much of southeastern Wisconsin. Those projects include the Bucks arena, which is leading to the complete development of the Park East Corridor; a downtown streetcar; the Couture, a 44-story apartment tower that will break ground in December; The Corners of Brookfield, an outdoor shopping mall and mixed-use development; and other mixed-use and “urban lifestyle” developments in the suburbs.

RETHINKING THE APARTMENT MARKET The same year Northwestern Mutual began construction on its downtown Milwaukee headquarters, developers began building apartments, filling a void left in the market by the 2002 to 2008 condominium boom, followed by five years of no multifamily building, said Robert Monnat, a partner at Mandel Group Inc., one of the city’s most prominent apartment builders. One of the staples of this apartment boom has been high-end apartments in downtown Milwaukee targeted at millennials. In just five years, the stretch from South Kinnickinnic Avenue in Bay View to North Water Street in downtown Milwaukee has gone from barren to booming, with five- and six-story apartment buildings lining the street. Inside, the complexes could be described as expensive adult dorm rooms. Only instead of shared bathrooms, millennials are sharing rooftop terraces, pet spas and theater rooms. Of course, granite countertops, stainless steel appliances and balconies overlooking the Milwaukee River come at a price – especially as construction costs continue to rise for developers. Since 2012, construction costs, which comprise about 70 percent of the

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real estate

JON ELLIOTT OF MKE DRONES LLC

& development

Several apartment buildings have sprung up on North Water Street in recent years, including Mandel Group's North End development (left side of street) and The Rhythm (background) by New Land Enterprises.

cost of a development, have increased 40 percent, according to Monnat. The cost of raw materials has increased, on a year-to-year basis, between 5.5 percent for cement and 35 percent for diesel fuel, according to recent data from the Bureau of Labor Statistics compiled by The Concord Group, a Chicago-based construction consulting firm. “We’ve gotten smoked in terms of our ability to afford the construction costs we’re being asked to pay," Monnat said. Higher construction costs, compounded with creeping interest rates and commercial banks becoming more selective and enforcing stricter guidelines for multifamily real estate loans following concerns about overbuilding, have made it necessary for developers to charge high rents. A one-bedroom apartment at Mandel’s The North End development on North Water Street ranges from about $1,100 to $1,600 a month. Across the street at The Rhythm, one of Milwaukee’s newer apartment build18

ings developed by New Land Enterprises, rents start at $1,315 for a 405-square-foot studio and go up to $1,795 for a one-bedroom apartment. Gokhman built most of Rhythm’s 140 apartments as micro-sized

meaningful,” said Ian Martin, vice president of development at Mandel Group. “Rent elasticity in the baby boomer market is different. When you are downsizing out of a 3,000-square-foot house in Fox

“It used to be biking downhill. At some point, you hit the bottom and you have to start pedaling again to get where you are going, and that is where we are.” — Robert Monnat, Mandel Group

units to keep the costs down. About three years ago, Mandel Group concluded that these types of rents could not be sustained by millennials and decided to shift its focus to baby boomers who no longer want the hassle of homeownership. “For a millennial, the difference between a $1,000 rent and a $1,500 rent is B i zT i m e s M i l w a u k e e

Point or Whitefish Bay, the difference between a $2,000 to $2,500 a month rent is not as meaningful.” Mandel’s Beaumont Place, an 88-unit luxury apartment complex in Whitefish Bay, was 100 percent leased by baby boomers before it was built. Rents range from $1,522 to $3,148. According to Monnat, demand has

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never been higher for apartments, but high-end apartments for millennials have been overbuilt. “The market is beginning to exhibit normal characteristics where you have to think about what you are doing again,” Monnat said. “It used to be biking downhill. At some point, you hit the bottom and you have to start pedaling again to get where you are going, and that is where we are.”

THE DEMAND FOR SENIOR HOUSING Baby boomers are now between 50 and 70 years old, and everything from luxurystyle apartments targeted toward empty nesters to memory care units are being built for them in the city and suburbs. Waukesha-based Capri Communities LLC, which owns and operates 11 senior living facilities in southeastern Wisconsin, purchased a campus in Port Washington in January and announced it would spend $20 million to expand the independent living and memory care space at the facility.

❱

cover story

M.A. Mortenson is working on the expansion project at St. Camillus in Wauwatosa.

The following month, Capri announced it would invest $21 million in its Gables of Germantown facility with additional independent living, assisted living and memory care residences across from its existing campus. Senior living facilities offering the full spectrum of independent care to memory care are planned across the suburbs and the city. Saint John’s on The Lake on Milwaukee’s East Side is planning a third tower on the corner of North Prospect Avenue and East Kane Place that will serve the 74 residents living in the skilled nursing assisted living portion of the community. Senior living projects also are planned in Franklin, Sussex, Brown Deer, Brookfield, Glendale and Muskego. Even Drexel Town Square, the mixeduse development in Oak Creek that boasts restaurants, retail and high-end apartments, has carved out a space for seniors. Minnesota-based senior living apartment developer The Waters Senior Living LLC purchased 2.5 acres in the development to build a senior living facility there with up to 140 apartments. Brian Schack, associate developer for The Waters, said the company, which has developed and operates seven senior communities in the Twin Cities metropolitan area and Rochester, Minnesota, had been looking at the Milwaukee area for more than a year and is considering other locations in the area.

EVOLVING ECONOMY The industrial real estate market continues to grow in southeastern Wisconsin. More than 2.2 million square feet of industrial space currently is under construction in the area, according to the latest data released by the Commercial Association of Realtors Wisconsin and Xceligent. In recent years, 350,000 square feet of retail space in the Milwaukee area has

been repurposed for other uses. Many of those uses have been industrial space. Fox Point-based real estate firm General Capital Group LLC has taken two vacant retail properties on the north side of Milwaukee off the market recently. The company is planning to redevelop a 118,461-square-foot former Target store on West Brown Deer Road in Milwaukee and market it to potential industrial tenants. General Capital Group also purchased the 138,480-square-foot former Sam’s Club at 7701 W. Calumet Road to convert it to industrial space and lease it to Sellars Absorbent Materials Inc., a local paper towel and wet wipe distributor. Mark Henschel, vice president of commercial lending at Milwaukee-based Park Bank, said since Jan. 1, he has seen a broader scope of commercial real estate loan requests, including more applications for senior housing developments and warehouse acquisitions or industrial developments. Park Bank still is adding multifamily loans to its portfolio, but Henschel said the applications have slowed down. Multifamily developers are having a more difficult time securing loans. In 2015, new regulations went into effect forcing multifamily borrowers to contribute at least 15 percent of the real estate’s appraised as completed value prior to the advancement of funds by the bank. This has driven up the cost for developers. “I think a lot of banks are on pause for a bit to monitor absorption and see how the rents line up,” Henschel said. “There is also a crossover between apartment development and senior housing, where people are beginning to blur the lines between creating developments for empty nesters and an independent living facility.” Mandel Group’s plan to develop 105 high-end apartments in Fox Point at the former Dunwood Elementary School w w w.biztimes.com

Deep Experience. Insightful Counsel. With the largest real estate practice of any law firm in Wisconsin, our attorneys help clients successfully navigate today's most important commercial real estate issues by delivering innovative, cost-effective solutions expertly matched to each client's unique needs.

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Technology

Contractors • Developers

Institutional

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B i zT i m e s M i l w a u k e e

Office

262-513-3750 19

real estate

& development

cover story JON ELLIOTT OF MKE DRONES LLC

❱

The 84South development in Greenfield is one of several mixed-use projects in the Milwaukee area.

site also includes an 80-bed assisted living facility. “Projects are going to continue to get built, but they are going to get built only if there is true demand,” Monnat said. “We’re acclimating back to normal now

and as we do, it’s going to be very challenging to get projects done.”

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B i zT i m e s M i l w a u k e e

costs and tighter banking regulations, finding skilled labor also has been a struggle for contractors, particularly with so many large projects currently underway. According to the Associated General Contractors of America, construction employment is at its highest level since 2008, with 6.8 million people working in the field. At the same time, skilled labor availability continues to put pressure on construction costs as a whole. John Hunzinger, president of Brookfield-based Hunzinger Construction Co., said the Milwaukee market is luckier than most because it was able to retain many very good specialty contracting companies through the Great Recession. Still, the cost of labor continues to steadily increase, contributing to the rising costs of construction projects, Hunzinger said. “When you start to compare building costs today to what they were during the recession, you see some impressive gains,” Hunzinger said. “I think there was a pent-up demand. Labor contracts that had multi-year agreements have been negotiated and supply and demand are driving up material prices. That is all moving in lockstep.” According to The Concord Group, construction costs will continue to rise 3 to 4 percent in 2017 and all major contractors and subcontractors are reporting a significant amount of work booked through the year, which suggests demand is continuing to rise. As far as Milwaukee’s construction “boom” continuing, Hunzinger said it depends when you ask the question. The

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market ebbs and flows, he said. “We’re seeing growth opportunities in every sector,” Hunzinger said. “Some are just more dynamic than others. Multi-family is still hot, even if some projects have pulled back a bit. I think we’ll still see other projects announced. I don’t pretend to know about absorption rates, but there doesn’t seem to be a lack of interest.” Rick Schmidt, president and chief executive officer of Milwaukee-based C.G. Schmidt Inc., agreed that the workload is still very strong. “Over the next couple of years, I believe it will continue to be strong and the opportunities will still be there,” Schmidt said. School building projects also will keep contractors busy. On April 4, Wisconsin voters approved $700 million in school referendums for new building projects in numerous districts all over the state, including Grafton, Verona and Green Bay. Schmidt believes his company will continue to see growth in its corporate industrial, senior living and education business in the coming years. Still, that growth likely will be less than in previous years. C.G. Schmidt experienced a 25 percent revenue increase from 2015 to 2016. Schmidt is anticipating a 15 percent jump this year over 2016. “To me, it doesn’t feel like we are nearing the end of the boom. Next year and the year after, we have a very solid pipeline of construction projects in the markets where we operate,” Schmidt said. “They may not be really huge, sexy projects coming up, but there is a lot of work.” n

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real estate

& development

A rendering of Mandel Group’s “Overlook” building at its planned office development in Walker’s Point.

A rendering of Mandel Group’s “Vista” building at the office development.

Mandel Group explores office development, says no to condos

n December, Milwaukee-based Mandel Group Inc. released plans for a three-building, 275,000-square-foot development along the Milwaukee River in Walker’s Point. The renderings were slick. They showed a lot of glass, riverfront views and CORRINNE HESS P: (414) 336-7116 E: corri.hess@biztimes.com Twitter: @CorriHess

40-foot ceiling heights. What came as a bit of a shock was that Mandel, one of the city’s most prolific apartment builders, was not planning an apartment development at the site, which happens to be across the river from the firm’s DoMus apartment project that is currently under construction. The renderings were for office space. Mandel’s original plan for the site was 175 apartments, said Robert Monnat, a partner at Mandel Group Inc., but the firm thought the project would 22

not attract the target demographic it has been going after the past few years. Luxury apartments in the Historic Third Ward and Walker’s Point typically attract millennials. While apartments are still in high demand, that sliver of the market has been overbuilt, Monnat said. Mandel Group decided about three years ago to shift its focus to baby boomers and empty nesters. With the exception of the fifth phase of the North End development on North Water Street, Mandel Group has pulled back on its developments targeted to millennials. So instead, the firm decided to revisit the Walker’s Point site and create a plan for waterfront office space. “We were finding anecdotally and through our own search for office space, there are no office buildings that will support a larger, single floor plate for companies in the 25,000- to 50,000-squarefoot range,” Monnat said. Mandel Group is planning to move from its current office at 301 E. Erie St., to make room for HGA Architects at B i zT i m e s M i l w a u k e e

333 E. Erie St. to expand. Mandel looked at about 15 spaces downtown before deciding it could build its own office space and also attract suburban office users who want to come downtown, but have not found the right space. The proposal repurposes a warehouse building on a 7-acre site near East Florida and South Water streets, including the former Wisconsin Cold Storage Co. property. It also requires the demolition of the 12-story dormant grain elevator at the southern end of the development site. In the end, there would be two new buildings. “Vista” would be a 100,000-square-foot office building that includes a 65,000-square-foot main floor and a 35,000-square-foot mezzanine. A second structure where the grain elevator now stands, named “Overlook,” would be a seven-story mixed-use building with parking, first-floor commercial space and four floors of office, each containing 15,000 square feet. And a third

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mixed-use building is planned on the adjoining former Wisconsin Cold Storage Co. property, combining repurposed portions of the existing historic buildings with new construction. Monnat said without marketing the project, he has gotten a lot of calls from interested tenants, including one person who believes he can consolidate his space from 50,000 square feet to 35,000 square feet because of the floor plates. “I don’t know where all of this will go – talk is talk – but I think we have definitely hit a nerve,” Monnat said. “We’re not getting into the office business; we were interested in this. If an opportunity comes up in office or retail space, we have the latitude and the bench strength here.” Another area Mandel Group continues to be asked about is the condominium market. While the company has increased its focus on baby boomers, many of those people are looking to lease or purchase a three-bedroom unit in downtown Milwaukee. Three-bedroom rentals currently

Findorff Builds wisconsin’s workforce.

are in short supply. The problem is, they only want to spend $300 per square foot to purchase a condo, and it would cost $400 to $475 per square foot to build and develop a condo, Monnat said. “And that is only if a developer could secure a loan and control all of the complexities of a condominium development,” he said. “It is the complexity of building a single family home, but building an entire neighborhood of single family homes at once and satisfying every neighbor as to their custom requirements.” For now, condo development is best left to the large single-family builders, Monnat said. David Belman, president of Belman Homes, currently is working on Woodland Hills, a side-by-side ranch-style condo project in Waukesha. The project has drawn a lot of interest from baby boomers looking to stay in their communities but leave behind the hassles of homeownership. Still, Belman, who is president of the Metropolitan Builders Association, has heard from other home builders who never want to get back into condo development because of the complexity of the work. “It is more challenging, but the good thing is you are not competing as much as you are with single family,” he said. n

Build your career with Findorff. Our talented crew of professionals understand the importance of community and are excited to be a part of the teams that are helping to shape and grow Wisconsin. Findorff employs nearly 1,000 tradespeople including over 100 apprentices. We are always seeking the best and brightest to add to our Company. Visit us online to learn how you can join our growing workforce.

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real estate

& development

Housing starts hit 10-year first quarter high But regulatory and labor costs still hamper builders

BY CORRINNE HESS, staff writer

he residential housing market has been plagued for more than a year with low inventory, which has affected home sales and driven up prices. But the tide seems to be slowly turning. With 332 housing starts in the greater Milwaukee area during the first quarter of 2017, homebuilding in the metro area is stronger than it has been since 2007, according to the Metropolitan Builders Association. “It has been slowly going up for a while and we anticipate we will be in slow growth mode for the next couple of years,” said Kristine Hillmer, executive director of the MBA, which covers Waukesha, Washington, Ozaukee, Jefferson and Milwaukee counties. Any sign of growth is welcome.

New housing starts in the greater Milwaukee area were up 7.4 percent during the first quarter of 2017, compared to the same period the previous year. This is coming off of 2016, when housing starts were up 15 percent over 2015. The three communities with the most housing starts during the first quarter were Menomonee Falls Belman Homes currently is building additional homes in the Rolling Oaks subdivision in the Town of Waukesha. with 46, Mequon with 31 and Pewaukee with 23. For the first quarter of the year, there the first quarter of 2015, according to the Mike Ruzicka, president of GMAR. “Job were 3,325 homes sold in the greater Mil- Greater Milwaukee Association of Realtors. security and prospects look good, and waukee area, up 3.9 percent from the same “Market conditions are ripe for a interest rates continue to hover around time last year and up 7.7 percent from strong spring and summer market,” said historic lows. The biggest cloud on the

Understands. Choosing a law firm is no easy task. When you partner with us, you’ll quickly see that our industry experience is an invaluable asset – but our client relationships are our highest priority. Our deep knowledge of your industry helps us resolve day-to-day concerns and identify opportunities to provide the support you need.

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Washington, D.C.

Wisconsin

Greater Milwaukee single family and duplex permits of its “Smart Start” homes for under $300,000. The lots are located farther north and west from the metro Milwaukee area, on land that was developed prior to the recession. The Smart Start homes typically are located in western Waukesha County, northern Washington County or in Ozaukee County. “The lot pricing has driven affordability,” O’Brien said. So far, the Smart Start homes have been a popular sell, he said. “We continue to refine the strategy and are looking to target the move-up, first build buyer,” O’Brien said. David Belman, president of Waukesha-based Belman Homes and MBA pres-

n Number of permits

SOURCE: MTD MARKETING SERVICES LLC

horizon is the supply of homes, both existing and new construction.” Housing inventory has been tight for more than a year on existing homes, which is why the new housing starts are so important. The new homes being built typically cost at least $300,000 and are purchased by people moving out of starter homes, which are needed for first-time home buyers. In March, inventory was 4.4 months. The ideal housing market has six months of inventory, which leads to a balanced market. When inventory is tight, it is a sellers’ market and homes become overpriced. Despite the increase in housing starts, Hillmer said there are a few factors that will continue to give builders pause. Increasing labor costs are the biggest concern, with carpenters being among the most difficult to find skilled tradesmen, Hillmer said. The MBA and six builders will host Building Career Day on May 19 for more than 200 high school students at one of the Parade of Homes sites in Menomonee Falls to talk about careers in the building trades. “This is the first time we are doing this and we are over-the-moon excited,” Hillmer said. A 2016 National Association of Home Builders report found that on average, local and state regulatory costs total $84,671 per home built. Those fees also have slowed down the pace of home building. That, coupled with the cost of land, make it difficult to build a house for less than $350,000, Hillmer said. The average home being built in the metro Milwaukee area costs $376,629 and is 3,047 square feet, according to the MBA. “It is economically not viable to build a smaller starter house,” Hillmer said. “Three-fourths of the costs are borne on the development side. Until the regulatory burden is under control, there is no way inventory in the new market will be in the starter home range.” Tim O’Brien of Pewaukee- and Madison-based Tim O’Brien Homes, does about 14 to 16 housing starts per month in the Milwaukee area and another six to eight in Madison. O’Brien said he looks for supplier or trade partners to lower the cost of doing business and also tries to work with vendors to find different products to mitigate costs. Tim O’Brien Homes also has been able to offer home and lot packages as part

ident, currently is adding homes to the Rolling Oaks subdivision in the Town of Waukesha, which will consist of 45 homes when complete. The company also is building Woodland Hills, which consists of side-by-side ranch-style condominiums in Waukesha. Belman said the cost of lumber and metal have gone up significantly since the

beginning of the year. “The icing on the cake is labor costs,” he said. “We lost half our workforce from the Great Recession, so we are trying to do more with less, which puts pressure on labor prices as well. That being said, it’s a good time to build because the existing homes are selling so quickly, they rise very well in value.” n

N115 W18500 Edison Drive Germantown, WI 53022

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strategies The art of prospecting How to build a robust sales pipeline

star doesn’t produce results, the right action does. Let’s examine how to plan your activity by dissecting the numbers. For illustration purposes, let’s assume that your annual sales goal is $4 million, your average sale is $100,000 and your close rate is 20 percent.

hen I was in high school, Peter and Kitty Carruthers, a brother and sister figure skating team, wanted to compete in the Winter Olympics. Their schedule involved getting up at 4:30 a.m. each day to practice in their backyard skating rink, followed by lessons at an indoor ice rink after school for several more hours. Weekends were consumed with competitions, lessons, family time and homework. There was little opportunity to do teenage stuff; but that was the price they paid for success. In the 1984 Winter Olympics, they took home the silver medal. They taught me that if you want to be the best at anything, discipline and rigor are required. For most sales professionals, prospecting is a “have to do” activity, not a “want to do,” because strikeouts are more common than home runs. Let’s face it, prospecting is not fun; but every job is comprised of the 80 percent of the activities you enjoy and 20 percent that you do because “you have to.” If you follow these simple steps, prospecting can become a fun game of numbers, especially when they shift in your favor and your sales pipeline is bubbling with opportunities.

From experience, you know that it takes 100 initial calls or emails to connect with seven people, and of those seven connections, five will agree to meet with you. If your close ratio is 20 percent, that means you will generate one sale from those five connections. To achieve $4 million in sales, you will need to generate 40 orders for $100,000 each. This means you will need to make 4,000 initial contacts this year; broken out into actionable steps, it means you need to make 85 contacts each week, or 17 per day. Each call/email takes less than a minute,

Know your numbers. Wishing on a

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For the best results, master these five disciplines: 1. Be prepared »» Research your prospects. Use LinkedIn, Google, the company website, etc. so you craft a compelling message that is tailored to the prospect. »» Practice. Write out your call script and practice saying it out loud so it sounds conversational, not scripted. Record it, and play it back so you hear what you sound like. Change what doesn’t resonate with you. »» Prepare the day before. Never conduct research and make calls or send emails on the same day. Be fresh. Separate those responsibilities. 2. Quantify results »» When crafting your call script or email, be sure to quantify the results you have helped other clients achieve. Don’t tell the whole story; instead, highlight in a sentence or two the results you’ve helped them achieve.

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When is the best time to prospect? The golden rule I follow is if you are contacting high-level decision-makers, reach out with a call or email before 8 a.m. or after 5:30 p.m. Some sales professionals spread their luck out over the week by making eight contacts every morning before 8 a.m., followed up by six more after 6 p.m. Decide what works best for you and then block time to make that happen.

Plan your success

WEB:

which means that in less than 30 minutes a day, you can become a star performer. A mere 30 minutes a day to rank among the top 1 percent of top performers – isn’t that compelling?

3. Be succinct »» Your call script should not exceed 35 seconds. Anything longer and the prospect will cut you off or delete your voice message.

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CHRISTINE McMAHON SALES 4. Be professional »» Never leave the same voice message or send the same email to a prospect. Develop a campaign with different messages; I often start with five, and then if I strike out and need more, I develop them. »» If the prospect hangs up on you, shake it off and move on to the next in line. Never take it personally – you never know what they are dealing with on the other end. 5. Track your success »» Record your activity and results. Be sure to keep a log that captures when you called, the voice message you left and your results. This will help you to identify when you were the most successful. Was it the time of day? The message? The title? Time is money and prospecting is as much a science as it is an art. Become your own expert. »» Pay yourself first. Block time each week to prospect. Make that time non-negotiable. You will be thrilled with the results! Prospecting is a long-distance event; but unlike a marathon, when you cross the finish line exhausted, a robust pipeline enables you to crush your numbers and be among the top 1 percent of sales professionals. What one action can you take today to improve your prospecting success? n Christine McMahon provides strategic sales and leadership coaching and training. She is the co-founder of the Leadership Institute at Waukesha County Technical College’s Center for Business Performance Solutions, and can be reached at (844) 369-2133 or ccm@ christinemcmahon.com.

strategies

6. Promise the board your team will

evaluate all the ideas at future management meetings and let it know the course of action your team chooses. 7. Capture all of those ideas and bring them to a management meeting to start the process of evaluating the ideas through the use of an evaluation matrix. 8. After that, you can start testing on a small scale some of the ideas to find out what actually works and discard those that don’t. Some will be greenlighted; some will be given a blue light for more study; and some will be given a red light and are thrown out early. 9. At future board meetings, you can report back on the ideas that were adopted and the results.

Innovate or die

Can a board of directors help your company be innovative?

n 1985, the board of directors of Apple Computer summarily forced co-founder and chairman Steve Jobs out of the company and sent him packing. That brings to mind an oft-quoted piece of advice about a board of directors: “They are a lot like mushrooms; you keep them in the dark and spread manure on them.” But there’s another view that a board of directors can be a great source of creative thinking as you wrestle with some of the daunting problems facing your business. As a “recovering lawyer,” I can state the legal theory behind having a board of directors is that it has a fiduciary duty to be the “conscience of the corporation.” With that said, nobody has quite figured out how that responsibility should be exercised. Boards often are accused of acting as micromanagers in making the life of management miserable. But some have been ac-

cused of being too hands-off and overlooking egregious crimes within a corporation, such as what happened at Enron Corp. I believe there’s a happy medium in a way that can benefit your company. The model I suggest was learned when I was a law student at Boston University. We used the case method to learn the law. I had numerous friends at the Harvard Business School, and they also used the case method to teach business. How does this work? Here’s the drill and what I call the “secret sauce” to getting maximum benefit from a board of directors: 1. Have your management team carefully define its biggest challenge or problem in advance of any given board meeting. If you don’t have any problems, then you’re living on another planet! 2. Once that’s agreed to, create a brief describing the genesis of the problem w w w.biztimes.com

DAN STEINING ER INNOVATION and why it keeps you and your team up at night. It should read like a good novel, with all the ups and downs you’ve experienced on the issue. 3. That brief should be sent to the board several weeks in advance of a meeting. 4. In the cover email to the board, ask the directors to bring their most creative ideas to solve the problem identified in the brief. 5. At the meeting, capture their ideas and suggestions in writing on flipcharts that can be hung around the board room. One study by the Harvard Business School suggests that the more ideas listed, the better the chances of producing quality ideas at the end of the process.

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The advantage of this approach is it makes maximum use of the experience of the board members, without allowing them to force management to take up a specific course of action. Let’s face it: most board members want their ideas implemented, but that can be dangerous because they don’t work in the business; consequently their ability to really understand the challenges of execution and the intricacies of what you face is not easily translated into sensible advice. So this approach has the advantage of utilizing the board’s talent and brainpower, as the directors will feel valued when you get back to them on which of the ideas you chose to implement. They will love it! They will no longer be required to sit and listen to management as it proposes resolutions for their approval. Rather, this requires the board to be actively engaged, which makes a board meeting far more lively and more interesting, and it will attract other quality directors when they hear about this approach. This is worth a try. And if you need help in writing those briefs, feel free to reach out to me, as I did it in my youth as a lawyer. n Dan Steininger is the president and founder of BizStarts, and the president of Steininger & Associates LLC, which helps companies drive new revenues through innovation. He can be reached at Dan@BizStarts.com.

strategies

Get your employees to work smart, not hard Seven steps to align them to your goals

ou’ve heard the drill: “We are not making our goals this quarter, so we need to …!” The pressure felt at the top can often cause the senior executive team to dictate direction when results are not occurring as expected. While most leaders understand employee engagement is important, they do not realize how this knee-jerk reaction completely sabotages efforts toward aligning employees to the vision and goals. There are seven steps to align employees to your goals to achieve results, including: Sell the vision; engage employees in goal-setting; align department goals and initiatives; create individual action plans; maximize transparency and accountability; communicate, coach and celebrate; and renew quarterly plans.

Engage employees in goal-setting

Sell the vision

Now that you have built the company goals and key initiatives, it is time for department leaders to determine their department goals and initiatives by collaborating with their employees. Keep in mind: It is important for each department to add value to each company goal, even when it is not an obvious alignment. For example, accounting can have impact on revenue by creating innovative ways to qualify prospects, get financing, and by creating online methods to pay invoices quickly.

When we properly align employees to our company’s vision, we do more than just put a plaque on the conference wall. In order for the vision to be a powerful guiding force, employees must understand the big picture and feel the desired customer benefit. This immediately creates a customer-focused culture with a strong purpose. Aligning the vision statement with the goals and important initiatives needs to be an ongoing process for it to be understood.

Engaging employees in the vision works best when it is a collaborative process. Who better to determine the “how” to get to the vision than the people who carry out the execution? Engage your key talent in a company and department S.W.O.T. analysis to identify strengths, weaknesses, opportunities and threats. Not only will their input be helpful, but it also will get your talent to think like a business owner. From this input, you are able to not only build more meaningful goals, but also create key initiatives to address the weaknesses, opportunities and threats.

Align department goals and initiatives

Create individual action plans Most often, employees need coaching on how to create an effective plan that aligns to the department and company goals, even when the initiatives are clearly defined. When leaders facilitate an action plan discovery conversation, employees can create a quarterly plan of action that outlines exactly how they will impact goals. It is important that their plans have clearly defined deadlines and milestones. Collaborating in advance on these plans will assist employees in being more proactive, instead of reactive to daily demands.

Maximize transparency and accountability Daily alignment is most likely to occur when there is a transparent system that tracks progress. While a project management system or an excel spreadsheet can help, oftentimes these systems are difficult to update or do not remind employees of important deadlines. Without reminders, employees begin to forget “why” they are doing what they are doing, and the purpose and deadlines are lost.

Communicate, coach and celebrate Leaders who let go of micro-managing can focus on the continual communication of the vision and goals, and achieve greater

S US A N W EH R LEY MANAGEMENT success. Coaching and strategizing with employees helps them to work smart, not hard toward the goals. However, while process improvement is important in creating continual alignment, so is celebration of the milestones met. To make celebration meaningful, asking employees how they like to be recognized helps leaders to understand meaningful ways to celebrate progress.

Renew quarterly plans Renewing action plans on a quarterly basis will keep your plan in focus. Having quarterly updates also ensures accountability and realignment will occur. Leaders can review the action steps from the previous quarter and discuss the next quarter’s priorities. Nothing is more motivating for an employee than to know how they add value. And nothing is more valuable for a leader than to know employees’ actions are aligned to his or her goals. n Susan K. Wehrley is the founder and chief executive officer of BIZremedies. She can be reached at 414-581-0449 or info@BIZremedies.com, or view the website at www. BIZremedies.com.

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biz connections CA L E NDAR

NONPROFIT DIRECTORY

The Adler Group and HNI Risk Services will host Stop Recruiting One-Hit Wonders on Tuesday, May 9, from 9 a.m. to 3:30 p.m. at The Journeyman Hotel, 310 E. Chicago St. in Milwaukee. Bryan Johanson and Lou Adler will discuss the fact that candidate presentation doesn’t predict performance. They will share their proven performance-based recruiting and hiring process – which they use to train leaders at GE, LinkedIn and Snapchat. Cost is $350 for one person or $450 for two, which includes a copy of Lou’s book, lunch and workshop materials. For more information or to register, visit hni.com/talent.

SPOTLIGHT

The Business Health Care Group will host How Cancer Care is Being Revolutionized on Tuesday, May 9, from 8 to 10:30 a.m. at BMO Institute for Learning, 395 N. Executive Drive in Brookfield. BHCG’s informed decision-making vendor, Best Doctors, and IBM Watson Health will detail their new and unique collaboration, “Oncology Insight: Combining IBM Watson’s Cognitive Technology and Best Doctors’ Clinical Expertise to Revolutionize Cancer Care,” at the free event. For more information or to register, visit bhcgwi.org/events/bhcg-community-event-oncology-insight-with-watson/. The Metropolitan Milwaukee Association of Commerce’s World Trade Association will host its Wisconsin International Trade Conference on Thursday, May 11, from 7:30 a.m. to 5 p.m. at the Wisconsin Center, 400 W. Wisconsin Ave. in Milwaukee. Speakers at the 53rd annual conference will include Gov. Scott Walker and Lt. Gov. Rebecca Kleefisch. The event attracts about 500 attendees and also includes the Governor’s Export Awards. Cost is $175 for WTA/MMAC members, $200 for non-members and $65 for breakfast or lunch only. The Greater Union Grove Area Chamber will host Emotional Intelligence & Business Networking on Tuesday, May 16, from 7:30 to 11:30 a.m. at Ironwood Chophouse Saloon, 20715 Durand Ave. in Union Grove. Russ Kinkade, who holds a doctorate in clinical psychology, will evaluate not just as making as many connections in a short time as possible, but using emotional intelligence to make amazing connections. Cost is $12 and includes continental See the complete calendar of breakfast. For more information or to register, visit upcoming events & meetings. http://conta.cc/2ozCI7y.

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BIZ NO T ES Financial Solutions Group Wealth & Risk Management Services Milwaukee-based Financial Solutions Group Wealth & Risk Management Services LLC, a general agency of Massachusetts Mutual Life Insurance Company (MassMutual), recently earned recognition for America’s Council Qualifiers for 2016. America’s Council is the highest recognition a former MetLife Premier Client Group firm can receive. Recognition is based on overall performance of sales, product mix, profitability, recruiting and leadership throughout the transition to MassMutual Financial Group. Financial Solutions Group Wealth & Risk Management Services LLC offers a broad array of financial products and services for individuals, families and business owners, including life and disability income insurance; annuities; and investment products.

Bake Street Café Jeff DeSmidt, owner and baker at Bake Street Café in Brookfield, won “Hottest New Hybrid” in the doughnut category at the Wisconsin Bakers Association competition at the 2017 Wisconsin Restaurant Expo. DeSmidt won with Bake Street’s signature “Cruffin,” which is its popular morning bun. Professionals from around the state participated in six baking competitions at the Pastry Studio during the Expo. DeSmidt’s “cruffin” is a combination of a croissant and muffin, and is made fresh each morning with Wisconsin butter. Bake Street

Café opened in the Galleria West shopping center in January 2016, and serves breakfast sandwiches and assorted cruffins, sandwiches and wraps, salads and an assortment of smoothies, along with coffee and teas. It also has a growing catering business for corporate events, and uses locally sourced ingredients and products when possible.

Cornerstone Development of S.E. WI LLC Sussex-based Cornerstone Development of S.E. WI LLC, an Epcon Communities franchise builder, is no stranger to awards. Its community, The Glen at Seven Stones, received the 2015 Metropolitan Builders Association’s Achievement Award for Best Development of the Year. And this year, the company was recognized by GuildQuality with the prestigious 2017 Guildmaster Award. The Guildmaster Award recognizes companies within GuildQuality’s community of quality that consistently deliver exceptional customer experiences. In order to be recognized as a Guildmaster Award winner, a Guildmember must achieve a recommendation rate of 90 percent, as well as a certain response rate based on volume. Cornerstone develops ranch-style active adult communities, and currently is developing another Epcon Community, The Glen of Oconomowoc.

ProShip Brookfield-based ProShip Inc.’s CVP-500, an au-

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Neu-Life Community Development

2014 W. North Ave., Milwaukee (414) 933-3924 | www.neu-life.org Facebook: facebook.com/neulifeyouth | Twitter: @neulifeCD Year founded: 2000 Mission statement: To empower children and youth with skills and strategies to make better life choices. Primary focus: Youth development Other focuses: Youth programs that focus on the key areas of arts education, academic enrichment and life skills, health and wellness, service learning and entrepreneurship, community action projects, and workforce development. Number of employees at this location: Seven Key donors: »» Bader Philanthropies »» Impact 100 Greater Milwaukee »» The Lynde and Harry Bradley Foundation »» United Way of Greater Milwaukee and Waukesha County – Healthy Girls Program »» Zilber Family Foundation »» Zonta Club of Milwaukee Executive leadership: »» Joann Harris-Comodore, founder and chief executive officer »» Jody Rhodes, executive director

tomated packing system, was selected from more than 150 entries as the winner of the prestigious 2017 MHI Innovation Award in the Best New Innovation category. MHI is an international trade association that has represented the material handling, logistics and supply chain industry since 1945. The MHI Innovation Award serves to educate and provide valuable insights on the latest manufacturing and supply chain products and services to Pro-

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Board of directors: »» Rev. William Robbins, Bethel Baptist Church »» Ernestine Hill, nurse »» Glennie Pickett, business owner »» Cordelia Taylor, nonprofit administrator »» Denise Wooten, community member »» Joann Harris-Comodore, business owner »» Willie Simmons, retired Ways the business community can help your nonprofit: »» Backpacks and school supplies »» Christmas gift donations »» Volunteers and in-kind donations »» Pay It Forward – Landscaping and repair service projects with teens in July »» Career Fair – Career field presentations and networking with professionals in August »» FarmFork – Urban agriculture, culinary training (kitchen equipment donations) »» CommArts – Design software, art supplies, digital SLR camera donations »» Committee participation – especially professionals with marketing expertise »» Internship opportunities for youth – design, health/wellness, social services »» Financial donations Key fundraising events: Upcoming fundraising events include the Youth Art Show Luncheon on May 13 from 11 a.m. to 1 p.m., the Rock Bottom Brewery Fundraiser on June 1 and the FarmFork Feast in mid-October. Mat attendees. ProMat is the largest international material handling, logistics and supply chain show and conference held in North America and South America. ProMat 2017 exhibitors were called to submit a new product, product line, technology or service, or new application of existing products or technology that create quantifiable and sustainable results in terms of ROI, cost savings, customer satisfaction, etc.

biz connections PER SO NNE L F I L E

■ Accounting Edita Rimalovsky joined Schenck SC as a manager in the Milwaukee office. She will provide tax planning, consulting and compliance services to individuals, with a special focus on estate and gift taxation, estate administration and trust accounting.

■ Architecture

Arena

Submit new hire and promotion announcements to www.biztimes.com/submit/the-bubbler

II; Kathleen Vignali, project manager; Brian Tobiczyk, senior design phase manager I; Mike Texley, superintendent I; Scott Simpson, estimator III; Laura Rudolph, project manager II; Josh Rudolph, scheduling manager; Mike Marley, project manager I; Dan Kuepper, engineer I; Angie Helfert, project manager II; Chris Guido, superintendent I; Tony Erickson, senior project manager; Ross Bunchek, estimator II; Maggie Bork, project manager I; and Erin Bertocchi, project manager I.

Margis

Makouske

Brookfield-based GSF Mortgage Corp. has named Leo Spanuello director of third-party origination. He has more than 12 years of TPO development experience throughout Wisconsin. He will be responsible for establishing partnerships with banks, credit unions, mortgage bankers and brokers, and servicing their loans. Spanuello has worked in every facet of the mortgage industry over the past 25 years. Securant Bank & Trust, Menomonee Falls, named Ben Becker senior vice president and market manager. He has more than 15 years of commercial banking experience.

■ Building & Construction Mortenson Construction’s Brookfield office promoted several members of its team, including: Savannah Wehinger, estimator

Algiers

Chemistry in Place, Shorewood, promoted Dan Makouske to architectural and multimedia designer. The company also hired Olivia Algiers as its new logistics and Muehl marketing coordinator and Emily Muehl as its new director of marketing and business development.

■ Banking & Finance

■ Hospitality & Entertainment

■ Design

Milwaukee-based Engberg Anderson Architects hired architects Mariana Arena and Steven Margis. Additionally, Janine Kolbeck was hired to the comKolbeck pany’s marketing and business development team.

Ostap previously was the director of advancement at GCE Lab School in Chicago, where he was responsible for building relationships with key stakeholders and Ostap developing capital campaigns. Prior to GCE Lab School, he served as principal of Carmel Catholic High School in Mundelein, Illinois.

Diane Petfalski returned to Creative Business Interiors, West Allis, as director of business developmentMilwaukee. She has a degree in interior design from the University of Wisconsin-Madison and originally joined Creative Business Interiors in 1992 as an account executive.

Jessica Moore joins Waukesha-based Corporate Design Interiors as project coordinator. Moore comes with experience within the industry, having spent the past 14 years within commercial furniture dealerships, where she helped maintain numerous large corporate accounts, and an additional four years in customer service prior to that.

■ Education Mark Ostap has been named principal of

Parr

Huether

Taborski

Simms

Saz’s State House, Wauwatosa, named Jenna Parr graphic designer; Jennifer Huether general manager; and Brian Taborski and David Simms as its new executive chefs.

Marketing & ■ Public Relations RyTech LLC, Milwaukee, hired Sam Kessenich as a search engine optimization specialist in the digital marketing firm’s Third Ward office. Kessenich joins RyTech to manage and execute search engine optimization strategies amid continued growth in client deliverables in this service area.

The Sleep Wellness Institute, West Allis, has named Angela Monzon nurse practitioner; Jill Michaud patient care manager; Belle Eykmans marketing coordinator, and Bruce Bautch director of finance. The Waukesha County Business Alliance promoted Mervyn Byrd to vice president of sales and leadership development. Prior to joining the Alliance in 2014, Byrd was a commercial banker with various Milwaukee-area banking institutions, and worked with a payroll and HR solutions firm. G4S Secure Solutions USA and Milwaukee Downtown BID #21 have hired Stephen Basting as the organization’s new public service ambassador director. Known as downtown Milwaukee’s walking concierges, the public service ambassadors canvas more than 150 square blocks of the central business district, maintaining the district’s clean, safe and friendly mission. Prior to his start at Milwaukee Downtown BID #21, Basting served 27 years with the Milwaukee Police Department.

■ Professional Services Watertech of America, Greenfield, has announced the promotion of Jon Tiegs to vice president. He has more than 17 years of industry experience, including nine years serving as Watertech’s general manager.

■ Senior Living

■ Nonprofit Helen Boomsma has been named executive director at Schlitz Audubon Nature Center, Bayside. She will lead a staff of 55 at this education and conservation organization located on Lake Michigan.

Pius XI Catholic High School in Milwaukee. B i zT i m e s M i l w a u k e e

■ Professional Organizations

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Robertson

Doney

Luther Manor, Wauwatosa, has named Michelle Robertson campus-wide director of life enrichment and Wayne Doney director and general manager of dining services.

biz connections SBA L O ANS

The U.S. Small Business Administration approved the following loan guarantees in March:

Jefferson County Pidder Padder Paws LLC, 320A Summit Ave., Watertown, $40,000, Bank of Lake Mills; Ruzga & Son LLC, 1 N7924 Tamarack Ct., Ixonia, $330,000, U.S. National Bank;

Kenosha County A&M Restoration LLC, 1000 E. Lotus Drive, Suite 6, Silver Lake, $230,000, U.S. Bank; A&M Restoration LLC, 1000 E. Lotus Drive, Suite 6, Silver Lake, $25,000, U.S. Bank; Enova Investments LLC, 5718 52nd St., Kenosha, $690,000, The Bancorp Bank; National Materials Transport LLC, 6011 29th Ave., Kenosha, $876,000, United Community Bank; Strategic Electronic Solutions LLC, 4622 68th Ave., Kenosha, $100,000, Southport Bank; Valeo’s Pizza Kitchen II LLC, 9755 76th St., Pleasant Prairie, $615,000, State Bank of the Lakes;

Milwaukee County Action Heating and Cooling, 933 W. Somers St., Milwaukee, $493,000, Wisconsin Business Development Financial Corp.; Apple Steel Rule Die Co. Inc., 7817 W. Clinton Ave., Milwaukee, $600,000, The Huntington National Bank; Apple Steel Rule Die Co. Inc., 7817 W. Clinton Ave., Milwaukee, $2 million, The Huntington National Bank; Baldwin Trade LLC, 815 E. Brady St., Milwaukee, $190,000, Byline Bank; Barre District Pleasant Prairie LLC, 7929 S. Howell Ave., Oak Creek, $75,000, Cornerstone Community Bank; Denta-Med Healthcare LLC, 3900 W. Brown Deer Road, Brown Deer, $5,000, Wells Fargo Bank; Hair Man Dan LLC, 2222 S. Kinnickinnic Ave., Milwaukee, $50,000, Spring Bank; Ladeka Holdings LLC, 3861-63 N. 35th St., Milwaukee, $202,000, Milwaukee Economic Development Corp.; M&M Cage Co. LLC, 5365 N. 107th St., Milwaukee, $25,000, BMO Harris Bank; PSAB Enterprises Inc., 600 N. Broadway, Suite 200, Milwaukee, $4.2 million, Byline Bank; Retrospekt LLC, 1134 S. First St., Milwaukee, $300,000, Johnson Bank; Skywalk Pharmacy, 9000 W. Wisconsin Ave., Milwaukee, $350,000, Live Oak Banking Co.; Statewide Roofing Group LLC, 6055 N. Flint Road, Unit 5, Glendale, $50,000, Associated Bank; The Tinners Shoppe LLC, 3914 W. Vliet St., Milwaukee, $72,500, First Bank Financial Centre; The Wooden Nest Inc., 4454 S. 108th St., Milwaukee, $30,000, Tri City National Bank; VP Investors LLC, 1020 E. Land Place, Milwaukee, $119,000, Wisconsin Business Development Corp.;

Ozaukee County Advanced Spine Center S.C., North Buntrock Avenue, Mequon, $150,000, First Bank Financial Center; Junior Enterprises LLC, 766 County Road NN, Cedarburg, $25,000, U.S. Bank;

Midas Grafton, 2055 Wisconsin Ave., Grafton, $235,000, First Bank Financial Center; Milwaukee Ale House – Grafton, 1208 13th Ave., Grafton, $850,000, Wisconsin Business Development Financial Corp.; Motus Car Washes LLC, 948 W. Silver Beach Road, Belgium, $1 million, Byline Bank; TLS Property Group LLC, 2055 Wisconsin Ave., Grafton, $505,100, First Bank Financial Centre;

Racine County Capelli Skating Inc., 637 S. Kane St., Burlington, $498,900, U.S. Bank; ClearCom Inc., 1443 27th St., Caledonia, $25,000, Educators Credit Union; Halbach’s Heavy Haulers LLC, 31601 High Drive, Burlington, $30,300, Community State Bank; Racine Heat Treat, 1215 Eighth St., Racine, $489,000, Racine County Business Development Corp.; Tangles Salon Studio LLC, Main Street, Racine, $25,000, Wisconsin Women’s Business Initiative Corp.;

Sheboygan County Legacy Architecture Inc., 605 Erie Ave., Sheboygan, $75,000, Kohler Credit Union;

Walworth County Lake House Lifestyle LLC, N7588 W. Lakeshore Drive, Whitewater, $50,000, First Citizens State Bank; Marseo and Sons LLC, 1950 N. Wisconsin St., Elkhorn, $308,000, Waukesha State Bank;

Washington County American Exchanger Services Inc., 1950 Innovation Way, Hartford, $350,000, U.S. Bank; Ivy Manor of West Bend LLC, 365 S. Forest Ave., West Bend, $937,000, Wisconsin Business Development Finance Corp.; Kettle Moraine Egg Ranch LLC, Wescott Road, Kewaskum, $150,000, 1st National Bank of Berlin; Komassa Builders LLC, 1624 Concord Lane, West Bend, $10,000, U.S. Bank; World Care Transit Service LLC, N173 W21450 Northwest Passage, Jackson, $145,400, Educators Credit Union; World Care Transit Service LLC, N173 W21450 Northwest Passage, Jackson, $145,400, Educators Credit Union;

$821,000, Wisconsin Business Development Finance Corp.; Dornbrook Construction Inc., N91 W20980 Hillview Drive, Menomonee Falls, $18,600, Landmark Credit Union; Eco-Latch Systems LLC, N225 W4014 N. Duplainville Road, Pewaukee, $150,000, Celtic Bank; Environmental Resources Inc., W278 N2968 Rocky Point Road, Pewaukee, $250,000, JPMorgan Chase Bank. Frontier Title and Closing Services LLC, 1130 James Drive, Suite 101, Hartland, $150,000, First Bank Financial Centre; Haven Salon + Day Spa Inc., 15155 W. National Ave., New Berlin, $250,000, National Exchange Bank and Trust; Hawthorn Hills Landscape Contractors, N274 S4640 Saylesville Road, Waukesha, $150,000, Celtic Bank; K&B Rescue LLC, N92 W16135 Falls Parkway, Menomonee Falls, $350,000, Byline Bank; LeFever Roofing LLC, 675 Industrial Court, Suite G, Hartland, $75,000, First Bank Financial Centre; Majic Productions Inc., 21635 Gateway Court, Suite 10, Brookfield, $1 million, Town Bank; Michael Brown, N50 W16043 Honeysuckle Lane, Menomonee Falls, $133,300, Associated Bank;

Pete’s Main Street Headliners LLC, N88 W16616 Main St., Menomonee Falls, $8,000, Landmark Credit Union; Platypus Advertising and Design Inc., N29 W23810 Woodgate Court West, Suite 100, Pewaukee, $150,000, First Bank Financial Centre; Relany LLC, West National Avenue, New Berlin, $150,000, Wisconsin Women’s Business Initiative Corp.; SWS Services LLC, 1110 S. West Ave., Waukesha, $375,500, Waukesha State Bank; TC Marketing Acquisitions Inc., 139 E. North St., Waukesha, $1.4 million, The Huntington National Bank; TC Marketing Acquisitions Inc., 139 E. North St., Waukesha, $50,000, The Huntington National Bank; The Crafty Cow LLC, 153 E. Wisconsin Ave., Oconomowoc, $120,000, First Bank Financial Centre; The Crafty Cow LLC, 153 E. Wisconsin Ave., Oconomowoc, $120,000, First Bank Financial Centre; The Pickled Peanut LLC, 72 Happy Hollow Lane, Oconomowoc, $100,000, First Home Bank; Therm-Tech of Waukesha Inc., 1511 Pearl St., Waukesha, $718,000, Wisconsin Business Development Finance Corp.; Wirth Tool & Die Inc., W212 N7250 Dudovick Drive, Lannon, $50,000, Cornerstone Community Bank.

Construction Matters. We specialize in interiors – delivering your project on time and on budget.

Waukesha County Affinity Chiropractic & Wellness LLC, 259 South St., Waukesha, $50,000, Waukesha State Bank; Anchor Moving Systems, W144 N5800 Shawn Circle, Menomonee Falls, $150,000, First Bank Financial Centre; Aqua Hair Studio LLC, W279 N2221 Prospect Ave., Pewaukee, $1.1 million, First Bank Financial Centre; Blue-Sky Products LLC, N6 W30870 Cherokee Trail, Waukesha, $150,000, U.S. Bank; Century Landscaping Co. Inc., N77 W31086 W. Hartman Court, Hartland, $60,000, Landmark Credit Union; CSS1 LLC, 1201 Commerce St., Oconomowoc, w w w.biztimes.com

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biz connections

123@5 networking Ovation Leadership held a 123@5 networking event at the Tripoli Shrine Center in Milwaukee on April 12. 1 Lindsay Galan-Skinner of Thinking Tree Massage and Tom Kiernan of Northwestern Mutual Life Insurance Co. 2 Linda Wenzel of Northwestern Mutual, Milly Strong of Elm Grove Public Library, Linda Halpin of Halpin Personnel and Christy Miceli of Professional Imprints. 3 Doris Appelbaum of Appelbaumâ&#x20AC;&#x2122;s Resume Professionals Inc., Greg Reiner of First Associated Insurance and Sheila Buechel of Lawrence, Allen & Kolbe.

4 Ellie Mixter-Keller, self-employed career coach, and Dennis Majewski of MRA.

5 Richard Longabaugh of Vistage and Joellen Fritchen, customer service specialist. 6 Carla Ernst of CarlaAnne Communications, Steven Riege of Ovation Leadership and Rick Carlson of Kelly OCG Management Consulting. 7 Trevor Kurth of Fischer Wealth Management and Michael Hough of Frontier Title & Closing Services. 8 Dick and Mary Tillmar of Tillmar Connect LLC. 9 About 60 people attended the event at the historic Tripoli Shrine Center. Photos by Maredithe Meyer

You can see these photos and other business people in the news by clicking Multimedia on the navigation bar at â&#x20AC;Ś

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B i zT i m e s M i l w a u k e e

biz connections

n GLANCE AT YESTERYEAR VOLUME 23, NUMBER 3 MAY 1 - 14, 2017 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120 PHONE: 414-277-8181 FAX: 414-277-8191 WEBSITE: www.biztimes.com CIRCULATION E-MAIL: circulation@biztimes.com ADVERTISING E-MAIL: ads@biztimes.com EDITORIAL E-MAIL: andrew.weiland@biztimes.com REPRINTS: reprints@biztimes.com PUBLISHER / OWNER

Dan Meyer dan.meyer@biztimes.com DIRECTOR OF OPERATIONS

Mary Ernst mary.ernst@biztimes.com

EDITORIAL EDITOR

Andrew Weiland andrew.weiland@biztimes.com MANAGING EDITOR

Molly Dill molly.dill@biztimes.com REPORTER

Corrinne Hess corri.hess@biztimes.com REPORTER

Arthur Thomas arthur.thomas@biztimes.com INTERN REPORTER

Maredithe Meyer maredithe.meyer@biztimes.com

SALES & MARKETING DIRECTOR OF SALES

Linda Crawford linda.crawford@biztimes.com ACCOUNT EXECUTIVE

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PRODUCTION & DESIGN GRAPHIC DESIGNER

Alex Schneider alex.schneider@biztimes.com ART DIRECTOR

Success of Melbourne

Shelly Tabor shelly.tabor@biztimes.com

This photo shows the prison ship Success of Melbourne on the Milwaukee River. The Success was an Australian prison ship later converted to a floating museum that toured in the U.S. from about 1912 to 1945. Here, it is docked in front of 101 W. Wisconsin Ave., which was home to Gimbel’s department store and now houses a Planet Fitness gym. — This photo is from the Milwaukee Public Museum’s Photo Archives collection. Additional images can be viewed online at www.mpm.edu.

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COMME NTA R Y

United Airlines passenger mistreatment strikes a nerve

ne of the most-read recent articles on BizTimes.com was a short blog written by Dennis Ellmaurer, president of Milwaukee-based Central File Inc. and a TEC chair. In his piece, “Industry insider refused to fly on United Airlines,” Ellmaurer told the story of hosting PeopleInk president Ann Rhoades, a former airline industry executive, who was speaking to his TEC group. During her visit, Rhoades mentioned having trouble booking a flight out of Milwaukee. Her choices were limited, and the only airline providing direct service to her next destination was United Airlines. Rhoades said she refused to fly United because “unhappy people make mistakes.” “It appears Ms. Rhoades was on to something,” Ellmaurer wrote. Indeed. Unless you have been living under a rock, you no doubt have heard all about the now-infamous United flight from Chicago to Louisville. United had some crew members who needed to get on 34

the flight. Volunteers were sought to get off the plane, in exchange for cash. Lacking enough volunteers, one passenger was selected at random to be removed from the flight. The passenger refused and was dragged off the plane by airport security. Videos of the incident, shot by other passengers, went viral. Massive outrage was expressed by the public, reflecting just how frustrated many are with the customer service experience during commercial air travel. Making matters even worse were statements from United Airlines chief executive officer Oscar Munoz. In his initial statement, Munoz said, “I apologize for having to re-accommodate these customers.” The public reaction to that was widespread ridicule. Then, in a statement sent to employees, Munoz said, “our employees followed established procedures for dealing with situations like this.” That’s a terrifying admission. Finally, two days after the incident, B i zT i m e s M i l w a u k e e

his tone changed. “We take full responsibility and we will work to make it right…I have committed to our customers and our employees that we are going to fix what’s broken so this never happens again,” Munoz said. Since then, Munoz has continued to apologize and promise to improve procedures. That’s great, but something is missing. Nobody is promising to stop the practice of overbooking flights. I realize that it is very expensive to fly an airplane across the country. Airlines need to generate as much revenue as possible for their business to be viable. When seats are left open, even though the ticket was sold, it’s a missed revenue opportunity. I’m sure the airlines will say if they stopped overbooking flights, they would have to raise the ticket prices to make up for that lost revenue. Nevertheless, there has to be a better way. People traveling on airlines have

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w w w.biztimes.com

ANDREW WEILAND Editor BizTimes Milwaukee

made plans and asking them to get off the plane, even if they are well compensated, is a major inconvenience and is really a turn-off for the travel experience. That’s not how you want customers to feel, but the airlines keep doing this. This incident reminds me of the “Seinfeld” episode in which Jerry reserves a rental car, but when he goes to pick it up, the car isn’t there. “Unfortunately, we ran out of cars,” the agent tells him. “But the reservation keeps the car here,” Jerry says. “That’s why you have the reservation.” “I know why we have reservations,” says the agent. “I don’t think you do,” says Jerry. “If you did, I’d have a car.” n

ERICH SCHROEDER PHOTOGRAPHY

the last word

Collaboration: One of the best ways to find opportunity and achieve growth Dr. Asif Naseem is president and CEO of Paragon Development Systems. He says collaborating with industry experts and academia allows companies to innovate. “One of the quickest ways to accelerate innovation is through collaboration among experts from multiple disciplines. At Paragon Development Systems, we’re constantly striving to find new technology solutions to existing and emerging challenges in the enterprise, government, education and health care industries. “No matter the industry, identifying opportunities to build collaborative relationships among businesses and academia is one of the surest ways to address critical unmet needs in the marketplace. “It is often the intersection where different industries identify a mutual interest in filling a market need that leads to the initial sparks of innovation. From that point,

it’s a matter of identifying the course of action that will result in innovative solutions. “In our experience, we have found that partnering with an academic center of excellence – Massachusetts Institute of Technology – has opened the door to collaborative opportunities. We have built partnerships with thought leaders from different industries and academia to perform translational work identifying and implementing new ways to develop intellectual property and accelerate its path to commercialization. “The work being undertaken by these collaborations is opening the door to new opportunities within the markets we serve.

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Asif Naseem President and chief executive officer Paragon Development Systems 13400 Bishops Way, #190, Brookfield Industry: Information technology Employees: 300

“Change is a constant factor, no matter the business or industry sector, and it requires openness to new ideas and approaches. An organization is best positioned for growth when its leadership seeks appropriate collaborative opportunities that can accelerate innovative solutions.” n

B i zT i m e s M i l w a u k e e

The hours are long and the jobs aren’t always glamorous, but you work for you, and you will do whatever it takes to make your dream business a success. At American Family Insurance, we understand protecting your dreams goes beyond protecting the business itself. Find an agent today at Amfam.com/business to get just the right insurance for your small business.