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VALLEY OF DEATH Young companies bridge challenging chasm between seed and series A funding AL SO IN THIS ISSUE:
WISCONSIN BANKS HOPEFUL ABOUT PROPOSED DODD-FRANK ROLLBACKS COMPANY VALUATIONS MAY HAVE REACHED A PEAK MEET THE HEALTH CARE HEROES
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What’s next? How a Trump presidency could shape the economy The U.S. economy is headed for uncharted territory, with a new president-elect who is a political outsider challenging the status quo politically and economically. What policy changes lie ahead? How will they impact the global, national and state economies? Economist Michael Knetter Ph.D. and leading industry experts will provide their perspectives and answers to these questions and more at the 16th annual Northern Trust Economic Trends breakfast on January 26th. Seating is limited - register today at biztimes.com/trends.
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December 12 - 18, 2016 HIGHLIGHT S Now 4 Weiss Berzowski joins von Briesen.
Political Beat
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GOP gerrymandering ruled unconstitutional.
Made in Milwaukee
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Wisconsin Pharmacal stays on top of changing consumer spending habits. S P E C I A L R E P O R T:
BA NK ING & F IN A NCE
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In addition to the cover story, coverage includes expert insight on the potential peak of company valuations and feedback from Wisconsin banks on the proposed DoddFrank rollbacks.
News 10 Filling the workforce pipeline.
Innovations 11 Health Payment Systems eyes national expansion.
S TR ATE GIE S
14
Women in business
37
Daniel Schroeder
Family Business David Borst 38 Management Joan Lloyd 39
COV E R S T ORY
Crossing the valley of death Young companies bridge challenging chasm between seed and series A funding
BIZ CONNECTIONS Biz Notes 42
SPECIAL SECTION :
HE A LTH CA R E HE ROE S AWA R DS
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Meet the winners of the 2016 Health Care Heroes Awards, which include organizations and individuals making a difference in our community on the front lines of health care.
Nonprofit Spotlight Personnel File
42 43
BizTimes Around Town 45 Commentary 46
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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 22, Number 19, December 12 - 18, 2016. BizTimes Milwaukee is published bi-weekly, except two consecutive weeks in December (the third and fourth 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 2016 by BizTimes Media LLC. All rights reserved.
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Weiss Berzowski joins von Briesen
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ilwaukee-based general practice law firm von Briesen & Roper S.C. recently absorbed Milwaukee-based business law firm Weiss Berzowski LLP. Substantially all of the attorneys of Weiss Berzowski joined von Briesen at the end of November. They focus on representing businesses and executives in corporate law, real estate, estate planning and tax. “Weiss Berzowski will not continue to exist,” said David Roettgers, managing partner at Weiss Berzowski. “We’ve always admired the von Briesen success, certainly. We were looking at options and frankly, we’ve been getting approached by firms for a long, long time to add to their firms and add in their depth and none of them worked quite as well as the von Briesen relationship will.” About 14 of Weiss Berzowski’s attorneys and about 15 members of its administrative staff joined von Briesen,
Roettgers said. Those who did not come along will retire or continue practicing at other firms. Four attorneys, including founding partner Michael Berzowski, will retire. Partner Sandy Swartzberg is one of two attorneys joining other firms. “All the lawyers that we’re hiring are going to office here in our von Briesen offices,” said Randall Crocker, president and chief executive officer of von Crocker Briesen. “In 2012, we took three floors in the 411 Building, all of nine, 10 and 11. When we did that, we did it with the idea that we would grow and we had room for growth.” Crocker said von Briesen will remain in the 411 Building in downtown Milwaukee for the foreseeable future, and is always open to hiring good lawyers to grow its team.
von Briesen, founded in 1904, offers a full range of legal services to businesses, institutions and individuals. It has 153 attorneys at offices in Milwaukee, Brookfield, Mequon, Elm Grove, Delafield, Madison, Oshkosh, Appleton and Green Bay. It is the sixth-largest Wisconsin law firm. Weiss Berzowski was founded in 1953 by Marquette University Law School graduates Harold Frauendorfer and George Lorinczi as the Frauendorfer & Lorinczi law firm. The name has changed over the years as partners have joined and left the firm, and until recently it was called Weiss Berzowski Brady. It had 21 attorneys at offices in Milwaukee and Delafield. “von Briesen is a dynamic law firm, a platform for legal innovation and a leader in client service,” Roettgers said. “The philosophy of clients first, last and always mirrors our longstanding commitment to the businesses, individuals
and industries that we serve. Being part of a statewide, larger law firm will expand the services we offer and allow us to grow our practices with both existing and new clients. The lawyers joining von Briesen are excited about this opportunity and our new colleagues.” “The addition of these fine lawyers to our core practice areas enhances our proven level of expertise and cements our Wisconsin roots,” Crocker said. “With these lawyers, we will continue our traditions of value-added, cost-effective service focusing on a common sense approach to problem solving and to the practice of law. Today’s complicated business environment requires effective, practical, timely and result-oriented legal representation and advocacy and we are here to deliver this level of service. I have admired the work of these lawyers for many years and I am so pleased that they are a part of von Briesen.”
——Molly Dill
SOCI AL M E D I A S T R AT E GI ES
Let your employees build your brand The Internet is a “choose your own adventure” endeavor. We see what we want. We curate our own digital experience. People will follow your company on social media – and, ultimately, purchase from you – if they identify a shared value. The audience has a choice, and once they’ve chosen you, you can leverage social media to build your brand through those shared values. That is precisely why you should embrace the opportunity to let your employees build your brand with you through social media. Here are four basics you should buy into and start planning for.
Be brave. Set guidelines. Allow – even ask – your employees to get social. You may not realize it, but they are checking in on Facebook. They are making groups. They are talking to each other. Take a look, get involved and connect the dots by engaging with them. That’s not to say a company should get all ‘Big Brother,’ but strategically participating in the B i zT i m e s M i l w a u k e e
Shine the light Focus on your people. You have amazing stories inside your walls. Tell them! Get great photography. Use video. Shine a light on the good your employees do for your business, your customers and in their communities.
Make the sausage
Develop internal programs
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way people communicate will make enriching connections with your employees and company to build your brand.
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Show the process. Chop it into digestible bits of content to tell a story. Build a narrative. A short video of a manufacturing process won’t sell your secrets, but it may build pride among your employees.
Stand for something Expose your values; build connections with
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your audience. Be proud of what you do as a business. Discover your role in your community and create partnerships that build and serve. Empower your employees to make it known through social media. Stand together, make a difference and give more people a chance to identify those shared values so you can build your business.
——Colin Deval is PR/social media strategist at Milwaukee-based Core Creative.
leading edge COFF E E B R E A K
POLITIC AL BEAT
GOP gerrymandering ruled unconstitutional
What was the smartest thing your company did in the past year?
clients of all sizes.”
“We’ve invested a lot of time and effort in infrastructure enhancements that will help us better serve our clients and support our continued growth. We have greatly expanded our technology capabilities across portfolio management, investment research, client reporting, the ability to connect with clients remotely and more. We just finished remodeling and enlarging our offices.”
Do you plan to hire any additional staff or make any significant capital investments in your company in the next year? “We’re always ready to add exceptional talent to the team. We look for people with a great mindset, technical expertise and the passion, compassion and integrity to do what is right. We will continue investing in all areas of the business, with a keen focus on integrating technology to help us effectively and efficiently support our clients.”
What will be your company’s main challenges in the next year?
Do you have a business mantra? “We’re all in this together.”
From a business standpoint, who do you look up to? “My father showed me that a healthy work-life balance is the key to happiness.” “I also look up to Kurt Rozman, the president of Freedom Wealth Alliance. He is passionate about supporting our team. He does whatever it takes to make sure that we all succeed – both in supporting our clients and in enhancing our personal lives.”
What was the best advice you ever received? “‘Follow your passions and the rest will fall into place.’ I enjoy this profession so much that I feel like I haven’t worked a day since I started in this industry.”
What’s the funniest thing that ever happened to you in your career? “I was at an investment conference and was wearing a walking boot cast due to a toe injury. It was the topic of conversation wherever I went ... until a gentleman arrived wearing a neck brace. We laughed and everyone agreed that he won the award for ‘best injury.’”
“Regulatory issues are always challenging in the financial services industry. We are fortunate to have a dedicated compliance officer on the team.”
What’s the hottest trend in your industry? “There is a dichotomy, where larger wealth management firms focus on the largest clients and mid- to smaller-sized clients are left on their own to grow and preserve their wealth. We believe that everyone should have access to quality wealth management services and have built the infrastructure necessary to support
(Reuters) – Republicans in Wisconsin tilted district maps in their favor in order to hamper Democrats and ultimately win state elections in 2012 and 2014, a federal court ruled in a case that could influence future rulings on gerrymandering. The United States District Court for the Western District of Wisconsin decided 2-1 that Act 43, a redrawing of districts approved by the state’s Republican-led Legislature in 2012, violated the U.S. Constitution, court documents showed. “We find that the discriminatory effect is not explained by the political geography of Wisconsin, nor is it justified by a legitimate state interest,” the court wrote in its ruling. The case has no bearing on Republican Donald Trump’s victory in Wisconsin in the presidential election on Nov. 8, in which he defeated Democrat Hillary Clinton. Wisconsin Attorney General Brad Schimel said in a statement that he planned to appeal, which would send the case to the U.S. Supreme Court. A ruling there on gerrymandering – the practice of manipulating electoral boundaries for political advantage – could have wide implications across the country as similar cases in Maryland and North Carolina work their way through lower courts. “This is a big victory for those who want to see courts rein in partisan gerrymandering. But it is anybody’s guess what happens to this when it gets to the Supreme Court,” wrote Richard Hasen, an elections law expert at the University of California, Irvine, on his blog. Since 2010, Republicans have more than doubled their control of state legislatures. They now control both legislative chambers in a record 32 states, The New York Times reported. “Republicans win elections because we have better candidates and a better message that continues to resonate with the voters,” said Republican State Assembly Speaker Robin Vos in a statement.
What do you like to do in your free time? “I am happily married with three young children. I’m actively involved with my kids’ sports, scouts and school activities. We also live in a neighborhood with a lot of great friends, so there’s no shortage of things to do.
Eric Kulwicki Senior portfolio manager Freedom Wealth Alliance 675 N. Barker Road, Brookfield freedomwealthalliance.com Industry: Financial services Employees: 13 Family: Married to Amy. Daughter, Mya. Sons, Elliott and Ethan. w w w.biztimes.com
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BY TH E NU MBERS
$45 million
The First-Ring Industrial Redevelopment Enterprise Inc. recently received $45 million in federal New Markets Tax Credits. FIRE issues its tax credits to help finance developments in low-income areas throughout southeastern Wisconsin.
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Transcending Classroom Walls Wisconsin Pharmacal produces and packages a wide range of products using both automation and manual labor.
Wisconsin Pharmacal stays on top of changing consumer spending habits Jackson-based Wisconsin Pharmacal Co. LLC has been through a lot of changes over the years. The company traces its roots back to a pharmacy co-op started in Milwaukee in the late 1800s. The modern incarnation got its start when John Wundrock acquired it in 1970. Over the years, Wisconsin Pharmacal transitioned to an outdoor health and wellness company. Today, following a number of divestitures and acquisitions, the company makes a wide range of products led by Coleman-brand insect repellents. It also
ARTHUR THOMAS (414) 336-7123 | Twitter: @arthur8823 arthur.thomas@biztimes.com
manufactures water purification tablets, fish attractants and treatments for eczema and psoriasis, as well as feminine hygiene products under its Lake Consumer Products subsidiary. The company counts Walmart, Bass Pro Shops, Cabela’s, Walgreens, CVS, Rite Aid and many other store brands among its customers. With so many retail and drug store customers, Wisconsin Pharmacal finds itself paying close attention to the demands of both its customers and their consumers. “The consumer buying habits are strange, they’re finicky (and) you have to be on top of that,” said Andrew Wundrock, vice president of sales. Wundrock said the landscape in both retail and drug stores has evolved over the past 10 to 15 years, but the shift has been particularly noticeable in the last five. While the drug stores are increasingly focused on offering their own brands, other national retailers are leaning toward brands with proven track records. Wisconsin Pharmacal is able to take advantage of both sides of that trend. The company licenses the Coleman brand for a number of categories, which gives it the credibility to get its other smaller brands into stores. “We look for smaller segments that either don’t have a brand leader or have a brand leader that’s really taken their
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Wisconsin Pharmacal Co. LLC 1 Pharmacal Way, Jackson Industry: Consumer goods Employees: 65 www.pharmacalway.com
The Alverno College School of Business and the Wisconsin Women’s Business Initiative Corp. will host Transcending Classroom Walls on Tuesday, Dec. 13, from 5:30 p.m. to 8 p.m. at Tu Casa Mexican Restaurant, 3710 W. Lincoln Ave. in Milwaukee. The organizations have been working together to promote and enhance small business development in southeastern Wisconsin. The celebration event will allow Alverno business students to present projects they have been working on with five local startups. For more information or to register, contact Mary Tews at Mary.Tews@Alverno.edu.
BOOK REVIEW eyes off the business,” Wundrock said. In segments where the company doesn’t have its own product, Wisconsin Pharmacal produces products for chains like CVS. Expanding into businesses beyond insect repellant has taken some seasonality out of the business, but employment still fluctuates from a base of about 65 full-time employees to more than 100 early in the year to accommodate increased production of insect repellant. With a broad range of products, the company’s manufacturing activities include liquid filling, tablet pressing and suppository production. Items are packaged in a wide variety of containers, including bottles, tubes and non-aerosol pumps. Aerosol and citronella products are the only Wisconsin Pharmacal products not packaged in Jackson. Wundrock said those processes require specialized equipment, so the liquids are formulated in Jackson and sent to a firm in Middleton for packaging. Production is completed through a mix of automation and manual labor. Wundrock said finding a workforce to fill those needs doesn’t present as much of a challenge as finding the sales staff to get it into stores. “You have to be able to get these products placed at retail and then you have to be able to make sure that they perform,” he said. With either the U.S. Food and Drug Administration or the U.S. Environmental Protection Agency regulating most products, every company Wisconsin Pharmacal competes with has great products, Wundrock said, adding that companies also have become skilled at obtaining and keeping placement in stores. Those stores are increasingly less likely to take one product out to put something else in because of the amount of work involved. “It’s one thing to be able to get a product into a chain; it’s an entire other thing to make it sell,” Wundrock said.
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‘Peace through Entrepreneurship’ In “Peace through Entrepreneurship: Investing in Startup Culture for Security and Development,” Steven Koltai, former senior advisor for entrepreneurship in Secretary Hillary Clinton’s State Department and a 30-year veteran in the field, makes the case that joblessness is the root cause of the global unrest threatening American security and fostering entrepreneurship is the remedy. From 9/11 and the Arab Spring to the selfproclaimed Islamic caliphate, instability and terror breed where young people cannot find jobs, Koltai contends, while presenting readers with evidence to show that joblessness, not religious or cultural conflicts, is the root cause of the unrest that vexes American foreign policy and threatens international security. “Peace through Entrepreneurship” argues for the significant elevation of entrepreneurship in the service of foreign policy; not rural microfinance or mercantile trading, but the scalable stuff of Silicon Valley and Sam Walton, generating the vast majority of new jobs in economies large and small. “Peace through Entrepreneurship” is available at www.800ceoread.com for $19.20.
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leading edge NON P RO F IT N E W S
THE GOOD LIFE
Kathy’s House to build $7 million facility
Cultivating a healthy lifestyle
Kathy's House, a nonprofit that provides housing to hospital patients and their family members who have traveled to Milwaukee to receive treatment, is planning to build a $7 million facility with help from Froedtert & the Medical Kathy's House College of Wisconsin. The organization currently leases a building at the St. Camillus Health Center, a retirement community in Wauwatosa. But its lease ends in 2021 and St. Camillus, which is undergoing a series of construction and expansion projects, informed Kathy's House the lease would not be renewed after 2021, according to a statement by Kathy's House executive director Patty Metropulos published in the organization’s November newsletter. Metropulos wrote that Kathy's House is searching for a two- to three-acre parcel of land that costs around $600,000 near Froedtert & MCW on which to build the facility. “While we don't know the specific date a site will be selected, the board has two parcels of land it is pursuing,” Metropulos wrote. Plans for the new facility include 24 guest rooms, with some designed specifically for long-term care patients who are receiving treatments such as bone marrow transplants.
For the past year, Edward Bryant, director of lending at Northwest Side Community Development Corp., has been cultivating local small businesses by connecting them with financing they need to grow. But he’s spent his whole life cultivating a healthy lifestyle. Bryant considers his primary hobby to be staying healthy, but that hobby includes a lot of different activities. As a board member of the Fondy Food Center, he’s been actively involved in the Fondy Farmers Market on Fond du Lac Avenue in Milwaukee for the past several years. “I grew up in Mississippi and my family owned farms,” Bryant said. “We ate from the land, so this whole ‘farm-to-table’ thing wasn’t new for me. For the most part, it was part of my upbringing. But as I got older, I just saw how certain foods were pushed on people that were considered healthy, but might have had negative effects.” He said he lost both of his parents at a young age due to health conditions he believes may have been cured through better eating habits and healthier lifestyles. So he’s been trying to spread his knowledge of healthy living while maintaining a health-oriented lifestyle himself.
——Ben Stanley
Bryant Bryant, who lives in Milwaukee with his wife and three daughters, is a self-described “gym rat” who focuses on bodybuilding and regularly incorporates yoga into his workouts. “Just start somewhere, even if you start small,” he said of getting healthy. “Even if you walk for five minutes, that’s five minutes more than you have done in the past. Start small and dream big. Start with your physician and read your food labels. There’s definitely a ton of information out there.”
——Ben Stanley
EXPERIENCE WITH PERSPECTIVE At First Business, we boast our years of experience all the time. But it isn’t just bragging. Experience is what allows us to do everything from navigating clients toward success, to helping local universities produce business-savvy graduates ready to shape the future of our community. And no matter what issues your business faces today, you can be confident knowing you have a partner who’s faced it down a time, or two, (or a hundred), before. DAVE VETTA President & CEO, First Business Bank - Milwaukee
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Rachele Voigt Keller Williams Realty Inc. 205 E. Silver Spring Drive, Whitefish Bay Age: 24 Education: Bachelor’s in human resources management, University of Wisconsin-Milwaukee Current position: Licensed realtor Years at company: Less than one Previous position: Campus relations manager, Robert W. Baird & Co. Inc.
»» Why did you make the switch from human resources to real estate? “I found myself looking at my own future and where I would go. I didn’t think I could go anywhere in human resources and I didn’t love any of the other job opportunities. I knew I wanted to do sales, I just didn’t know what that was. I think what I was yearning for was being my own boss. I really just wanted to work for myself… and I needed that very drastic change from where I was.” »» What is your next career goal? “My next goal in terms of my career is I want to be in some way shape or form an inspirational or motivational speaker. My favorite part of my old job was when I was on campus with 50 or 60 students, helping them make the next step in their career. My career goal is in hopefully five to 10 years is experience enough things and reach my own goals so that I can inspire other people to do that as well.”
Live Block The Milwaukee Bucks recently submitted plans to the City of Milwaukee for the “Live Block,” portion of the downtown arena district development. The block, which will span North Fourth Street between West Highland Avenue and West Juneau Avenue, is one of the central elements of the Bucks’ plans for the new arena and will feature a mix of dining, entertainment and retail.
——Corrinne Hess
Presents:
On Thursday, November 17, nearly 350 area business leaders gathered to hear Marquette University’s Dr. Mark Eppli and an expert panel debunk common commercial real estate myths at the 14th annual BizTimes Commercial Real Estate and Development Conference. The panel addressed common assumptions such as that the Milwaukee hotel market is overbuilt, the industrial market is stagnant due to outsourcing and that millennials are the driving force behind the booming apartment market. BizTimes would like to thank everyone who attended. Sponsors:
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Re: Health care “Republicans and Democrats alike, and their policy advisors, cite high premiums and incomplete access as major issues, but fail to make the connection between costs and prices, and then high prices and poor access. The higher the costs/prices, the lower the access.”
- John Torinus, Serigraph Inc.
Re: Investment in early stage companies “The investment climate in Madison for early stage companies is relatively strong, as a number of investors noted during the Early Stage Symposium. The same is not true in Milwaukee, where much of the early stage money is clustered at the angel network or small fund end of the spectrum. Most national venture investors have yet to find their way to Milwaukee.”
How will the Trump administration impact the U.S. economy?
I’m bullish. Trump will improve the economy.
- Tom Still, Wisconsin Technology Council
Re: Donald Trump and trade
Wisconsin Commercial Real Estate Women hosted its 16th annual Showcase Awards to honor commercial real estate development and redevelopment projects in the community.
I’m bearish. Trump’s policies will hurt the economy. 33%
“(Trump’s) gift for reversing field and getting away with inconsistency could be useful on trade issues. He will learn shortly that he is playing with the possibility of triggering a trade war and a subsequent recession. A recession would be an ugly way to start a presidency.”
Trump will have no impact on the U.S. economy.
- John Torinus, Serigraph Inc.
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We provide solutions. To learn more about Davis & Kuelthau’s breadth of related services, contact James Braza, Construction Industry Team Chair, at 414.225.1421 or jbraza@dkattorneys.com or Daniel Kaminsky, Real Estate Team Chair, at 414.225.1431 or dkaminsky@dkattorneys.com.
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biz news Filling the workforce pipeline
Efforts seek to boost education levels of central city residents
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BY ARTHUR THOMAS, staff writer
Educa&onal a+ainment Educational attainment
Level
s he talked through the efforts to connect the Milwaukee community to jobs, former Alderman Willie or Prefessional degree Graduate orGraduate professional degree Wade made it a point to stress the relationship between his current employer, Bachelor degree Bachelor degree Employ Milwaukee, and Milwaukee Public Schools. Associate degree Associate degree If more students are able to connect with the workforce, there will be fewer Some college, no degree Some college, no degree adults with barriers to employment later High schoolor diploma or equivalency in life, said Wade, vice president High of comschool diploma equivalency munity relations at Employ Milwaukee. 9th tono 12th, no diploma If working with students before they 9th to 12th, diploma face additional barriers to employment Less9th than grade 9th grade Less than is part of solving Milwaukee’s inner city jobs puzzle, it is also a key part of filling n Wisconsin the workforce needs of employers, many 0% n Area around 30th Street Industrial corridor* of whom have lamented their inability to *Includes 53205, 53206, 53208, 53210 and 53216 ZIP codes | find skilled workers. Andy Hepburn, chief innovation of- ality is many high school students won’t ficer at Butler-based GPS Education Part- even consider the possibility of college beners, pointed out that in fields that go cause they think they can’t afford it. beyond entry level, there are two schools The offer of the MATC Promise proof thought for businesses. Some choose to gram was enough to attract 3,100 apengage and partner with their local cham- plicants in the first year, Martin said. A bers and schools; others feel it is entirely total of 1,200 actually registered for the on high schools or technical colleges to program and in the end, fewer than 400 prepare students. qualified. The program mandates onOf those businesses that don’t en- time high school graduation from a high gage, “I think that group that’s in that school within MATC’s district, a minispace is going to continue to struggle,” mum score of 16 on the ACT, 90 percent Hepburn said. attendance, a 2.0 grade point average durThere was a time when a high school ing senior year of high school and attenddiploma alone was a ticket into the work- ing MATC full-time. force, but over the years job requirements Martin said the school learned in the have trended toward postsecondary edu- first year that getting students and their cation. A 2013 Georgetown University re- families to complete the federal finanport estimated 65 percent of the job open- cial aid forms was among the most chalings available by 2020 would require some lenging aspects of the program. She said amount of education after high school. MATC plans to extend its work to reach That idea, combined with declining younger students, hoping that over time enrollment as the economy improved, more students will develop the expectaprompted Milwaukee Area Technical tion of going to college. College to launch its MATC Promise proAbout 21 percent of MPS graduates gram in 2015. The program, targeted at surveyed in 2015 said they planned to low-income students, offers those who go to a technical or vocational school qualify an opportunity to attend school at after graduation, on par with statewide no cost. figures, according to data from the WisMATC Promise is a last-dollar schol- consin Department of Public Instrucarship program that covers the gap be- tion. Roughly 36 percent of MPS gradutween what financial aid and a family can ates planned to go to a four-year school, contribute and the total tuition. Vicki compared with 52 percent statewide. Martin, president of MATC, said the re- About 14 percent of the Milwaukee 10
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30%
30%
Area around corridor*
students either had a job lined up after graduation or planned to seek employment. Statewide, that figure dropped to 8 percent. Making sure MPS students graduate with a plan and the opportunity to have choices is a task that falls to John Hill, MPS’ director of college and career readiness. That means they have both the academic and the social and emotional foundation to be successful, he said. Hill pointed out that for previous generations of students, there wasn’t a concerted effort by educators to expose them to all their career possibilities. Beginning next year, academic and career plans required by state law will have students developing a roadmap as early as sixth grade. “The idea is that kids start at an early age,” Hill said. The plans also help students match their interests and talents with potential career opportunities. They’re able to see salaries, recommended courses and degree requirements. In the five zip codes surrounding the 30th Street Industrial Corridor, more than 20 percent of residents older than 25 do not have a high school diploma or equivalency, according to U.S. Census data. That’s more than double the percentage statewide. The percentage of residents in that area that only have a high school diplo-
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25%
35%
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ma or equivalency is roughly the same, at about 33 percent, as statewide. The percentage of individuals with college experience, including up to a graduate degree, is 58 percent statewide. For residents in the zip codes near the 30th Street Industrial Corridor, it’s closer to 47 percent. Hill said he and his team are aware of the importance of their work. “Our work can really have a positive impact on the city and the state,” he said. The work is made more complicated by the fact that there are so many students to prepare. “To me, that’s the biggest challenge that I wrestle with every day,” Hill said. He also said partnerships with the business community make the work better, exposing students to potential careers. He highlighted members of the Metropolitan Milwaukee Association of Commerce Council of Small Business Executives welcoming tours for seventh graders. The program is in its third year, and the goal is to have every seventh grader tour a business in its fourth year. The other program Hill pointed to was ProStart, a two-year culinary program that exposes students to professional chefs. “It’s such a positive when we’re talking with them and they’re talking with us,” Hill said of the business community. n
innovations
Employers who adopt HPS send their employees a SuperEOB, a credit card-like statement, each month charges are incurred. The SuperEOB takes a family’s charges for the month and aggregates them into one bill.
Health Payment Systems eyes national expansion
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he health care system itself can be complicated enough. On the medical side alone, there are enough doctors, tests and facilities to make your head spin. Things don’t get any more straightforward once the care is complete. Sorting through the paperwork, reviewing explanations of benefits and dealing with insurance companies can sometimes seem like a big enough challenge to send you right back to the hospital. Enter Health Payment Systems Inc., a Milwaukee-based technology company that operates ARTHUR THOMAS (414) 336-7123 arthur.thomas@biztimes.com Twitter: @arthur8823
between the health care providers and the insurance companies, converting all the information into a monthly statement for
the consumer with its SuperEOB billing product. “We’re really just helping to simplify it from a consumer prospective,” said Terry Rowinski, Health Payment Systems president. The company makes it happen through a mix of people and process, but Rowinski says it’s the fact that HPS is accepting data from both sides that the parties already have in place that “really makes the magic happen.” Health Payment Systems works with self-funded and private commercial insurance products. To date, it hasn’t extended its technology to operate in the government-run space that includes Medicare and Medicaid. The journey to perfect the product has taken place over more than 10 years and now Rowinski, newly named to his position, has his eyes on expanding the company’s reach. w w w.biztimes.com
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Health Payment Systems Inc. Milwaukee Innovation: SuperEOB www.hps.md
“We are really evolving now into a technology product company,” he said, noting the company was founded to be just that, but the Great Recession Rowinski forced some changes. Health Payment Systems has 75 employees at its offices in downtown Milwaukee, plus contractors the firm works with regularly. Rowinski said he can see the headcount growing to more than 100 in the next couple years. Part of that growth will be fueled by
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a national expansion. Rowinski plans to launch that effort early next year. Expanding into other states will require more work and Rowinski said the company is focused on growing in a controlled fashion. Expanding will come with challenges of increased scale, all while keeping safety and security at the forefront of its work. More states also means paying attention to different regulations at the local, state and federal levels. It might seem the potential repeal of the Affordable Care Act could throw a wrench in those expansion plans, but Rowinski said any changes are likely to be felt more by the providers and insurers, although he acknowledged there may be some trickle down effects. Rowinski joined Health Payment Systems in 2014, although before that he was more likely to help you find a Halloween costume than handle insurance payments. After helping to launch Kohls. com, Rowinski eventually landed at New Berlin-based BuySeasons Inc. It was at BuySeasons where he got his first taste of Health Payment Systems as a consumer. “I had seen the positives of what (Health Payment Systems) was doing for the population that was taking (BuySeasons’) health care,” he said, adding he also saw the challenges return when BuySeasons went in a different direction. When it came to joining Health Payment Systems, Rowinski said the company’s board and senior management were looking for someone who knew nothing about health care or health care technology. Not having that background allowed Rowinksi to come in with a fresh perspective. He said the reality is regulations and industry standards for handling health care data and moving money make some of the basic mechanics of how the company’s products work almost an entry-level requirement. The differentiator comes from the customer experience. BuySeasons was built to be customer-centric, Rowinski said, and that’s the same focus Health Payment Systems takes today. He said the company regularly studies both its paper and electronic experience, continuously making improvements along the way. “They just need to have somebody help make the mess less confusing and that’s what we end up doing,” Rowinski said of consumers. n 11
real estate
A rendering of Atelier
HKS Holdings partners succeed on taking chances
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yler Hawley was a freshman in college when his mom bought one of the first condominiums in the Third Ward. The year was 1998 and the neighborhood was a ghost town of abandoned warehouses and outdated factories. “She was an interior designer at Engberg Anderson (Architects) and bought a studio,” said Hawley, co-owner of HKS Holdings LLC, a Milwaukeebased development company. “She lived there one year and then she sold it, CORRINNE HESS P: (414) 336-7116 E: corri.hess@biztimes.com Twitter: @CorriHess
doubling her money.” The neighborhood and its potential stuck with Hawley. After moving back to Milwaukee after 12
college in 2004, Hawley’s first deal with business partner Kyle Strigenz was in the Third Ward. The two worked with developer Doug Weas on a $13 million rehab project to convert the building at 311 E. Chicago St. into a mixed use office, retail and residential building. Today, nearly 20 years after his mother purchased that condo, Hawley, Strigenz and their third partner, Joe Klein, plan to convert the former Julien Shade Shop building at 338-340 N. Milwaukee St. into high-end apartments. The 109-year-old building, to be called Atelier, will include 31 apartments with commercial space on the first floor, which faces Milwaukee Street and St. Paul Avenue. A rooftop penthouse is planned that would include four additional apartments. Rents will start at $1,600 and range up to $4,000 for the penthouse. “At some point, there is not going to be B i zT i m e s M i l w a u k e e
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a lot of real estate left (in the Third Ward); this is all filled in and you can see these side streets are starting to go, too,” Klein said, pointing down Chicago Street while sitting at a table at Tre Rivali inside the Kimpton Journeyman Hotel, which HKS Holdings developed and opened in June. “We develop places we would want to live, places we would want to stay or shop,” he said. “As long as Milwaukee is still growing and vibrant, there will still be opportunities for us.” After working for the global real estate team at Lehman Brothers and then traveling the world following the company’s crash, Klein returned home and joined Hawley and Strigenz in 2009. Having been raised in a real estate family (his father is Dennis Klein, formerly of KBS Construction Inc.), the younger Klein was familiar with the deals with which Hawley and Strigenz were involved.
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The elder Klein helped finance the Aloft Milwaukee Downtown hotel, which HKS completed in 2009, shortly before Joe joined the team. Strigenz also has a background in real estate finance, having worked with Milwaukee-based FirstPathway Partners LLC. He said the three of them coming together made sense given their backgrounds and desire to create something that hadn’t been done before in Milwaukee. “We’ve all traveled extensively across the world, done projects in other parts of the country and after doing our own projects in Portland, Miami or New York, came together and said, ‘Why can’t we do this in Milwaukee?” Strigenz said. “We don’t mind being the first mover on something. In fact, we like that.” The first project the trio worked on together was in Bay View. Hawley and Strigenz had been accumulating parcels for several years, but the economy had taken a turn and obtaining financing was difficult. In late 2009, the three of them came up with the idea for Dwell Bay View, an apartment building that includes retail and parking. The $13 million project was financed with New Markets Tax Credits, Wisconsin Housing and Economic Development Authority bonds and a brownfield loan from the City of Milwaukee. From there, they developed Junior House, a 50-unit loft apartment development in Walker’s Point. The group in 2015 converted the Posner Building, at 725 N. Plankinton Ave. in downtown Milwaukee, to 105 high-end apartments called MKE Lofts, which includes 21,000 square feet of retail space. “The apartments we’ve done are unique,” Klein said. “If you had seen the MKE Lofts building two years ago, you would have thought we were nuts. But we have transformed that couple block radius into the most beautiful rental district in the neighborhood.” During their work on the Aloft, Strigenz and Hawley got to know Rich Meeusen, chief executive officer of Brown Deer-based Badger Meter Inc., who was an investor in the hotel project and is cochair of The Water Council. Meeusen’s excitement about The Water Council piqued the HKS partners’ interest. They wanted to find a way to capitalize, from a development standpoint, on the companies being lured to Milwaukee. So they developed the Global Water Center building at 247 W. Freshwater
The Kimpton Journeyman Hotel opened in June in Milwaukee’s Historic Third Ward.
The Global Water Center building in Walker’s Point.
Way, which now has more than 40 tenants who are a mix of entrepreneurs, water researchers and engineers. Meeusen said the Water Center building has been a beehive to attract water technology companies to build their business in Milwaukee. “You can go to Paris and tell people it’s a center for art, but until you take them to The Louvre, you’re not really proving it,” Meeusen said. “Our building really demonstrates we are a center for
one project.” HKS Holdings will begin 2017 with two large projects on deck: the Julien Shade apartment conversion and Global Water Center II, at 326-332 Florida St. in Walker’s Point, which will be used for graduates of The Water Council’s business accelerator programs and new industry cluster participants. There are other projects on deck too, but HKS Holdings principals are only saying they involve “neighborhoods.”
water technology.” Strigenz said he knew the Global Water Center would be a success because of the stakeholders who are involved with the project. And by extension, its success has benefitted the nearby Junior House Lofts and improved all of Walker’s Point, he said. “This is how our business is going to sustain itself,” Klein added. “Job growth, a good local economy, a strong hotel market. As the city improves, our business improves. The Global Water Center is just
“I think the best thing that could happen to us is to have our friends, family and visitors come up and say, ‘Thank you for putting this in our neighborhood,’ or ‘Thank you for bringing this to Milwaukee,’” Hawley said. “And it happens all of the time.” n
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special report
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finance & M&A
CROSSING THE
VALLEY OF DEATH Young companies bridge challenging chasm between seed and series A BY MOLLY DILL, staff writer
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lana Platt waits in a line at the back of an auditorium at the Monona Terrace convention center in Madison. When it’s her turn, Platt takes her place in the spotlight, in front of a red curtain, and presents the Whitefish
Bay-based company she’s been working on for the past year-and-a-half—a fundraising management tool for school districts called Classmunity. There are 50.4 million students in the U.S. and it takes about $11,600 per year to educate each one. Many schools have to fundraise to meet these costs, but fundraising is disjointed and prone to fraud, she says. “If you can think of a fundraiser, Classmunity can help the school manage it,” Platt says. “We bring modern financial technology to a sector that has been doing things pretty much the same way for decades.” She presents the company’s growth path and then she gets to the reason she’s making this five-minute pitch: “We’re looking to raise $500,000 to bring on more full-time staff members to help accelerate the growth of our platform and bring on more customers.”
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Walking the tightrope Classmunity is raising its seed funding round, the first institutional capital the company has sought out since its foundation. It is just moving beyond friends, family and grants into real cash. Once the company gets its seed round and grows larger, it will face the monumental challenge of raising an even larger sum – usually $2 million to $6 million – from venture capitalists for the series A round. Several Wisconsin entrepreneurship experts call the gap between seed capital and venture capital the “valley of death” because crossing it successfully can be so taxing. The “valley of death” is a particularly big problem for Wisconsin’s economy. Milwaukee ranks 39th among the 40 largest metropolitan areas in the country when it comes to startup activity, a set of economic indicators measuring new business creation, while Wisconsin ranks dead last among the 25 largest states, according to the latest Kauffman Index of Startup Activity from the Ewing Marion Kauffman Foundation. Startups are a vital source of new job creation. And the state’s lack of new business formation could translate to a less active venture capital community. There are only a handful of venture capital investors in the state, and three major names pop up again and again: Mequon-based Capital Midwest Fund, Baird Capital (with offices in Milwaukee and Chicago), and Madison-based Venture Investors. The East and West Coasts have the lion’s share of venture capital investment in the country. California had $33.9 billion in venture capital investment in 2015, according to the National Venture Capital Association. Wisconsin, on the other hand, only attracted $88.9 million in venture capital investment last year. However, some cities in the middle of the country, like Chicago and Dallas, have managed to put themselves on the map, according to a study by the University of Toronto’s Martin Prosperity Institute. “There needs to be more venture capital than currently exists in Wisconsin in order to compete in the knowledge economy,” said Joe Kirgues, managing director of Milwaukee-based startup accelerator gener8tor. “We need more engineers building more products and we lack the infrastructure that facilitates people taking the leap into entrepreneurship. In my opinion, venture capital is a lagging w w w.biztimes.com
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indicator. The leading indicator will be the number of angels in Milwaukee and the broader region.” “We lack that add-on capital,” said Dan Steininger, president of Milwaukeebased entrepreneurship assistance organization BizStarts Inc. “There’s just not enough for us, no question about it. We don’t even have enough angel capital, let alone add-on capital.” “We can use more capital, not just on the angel side, but between that angel and that later stage, there is a huge gap,” said Todd Sobotka, investment manager at BrightStar Wisconsin Foundation Inc., a Milwaukee-based venture philanthropy firm. “Wisconsin as a whole needs more capital and that was the focus of BrightStar. It’s not for lack of wealth. We do have a lot of wealth here but it’s just our culture – we just don’t invest in early stage companies.” “Obviously we have a lot of opportunity for growth, whether it comes to entrepreneurship or investment,” said Bram Daelemans, director of investor networks at the Wisconsin Technology Council. “It’s even something we put in our presentations and refer to as the ‘valley of death,’ but I think it’s getting better. If you look at the Badger Fund of Funds and some other funds that are getting started, I think people are making an effort to bridge that gap.” Classmunity was one of five Milwaukee-area companies pitching themselves at the Wisconsin Technology Council’s 2016 Early Stage Symposium. Startups from across the state and nation each got a five-minute window to tell investors about the company, what it does, its addressable market, the investment opportunity, how much it has raised so far and its customers. They practiced and honed their pitches with the WTC to get them ready for an audience of investors from Wisconsin and the wider Midwest. The other southeastern Wisconsin firms were Menomonee Falls-based NewOz Big Data Analytics, which created a system to decrease logistics costs for corporations; Milwaukee-based Metria, which innovated a single-camera 3D optical motion tracking technology; Waukesha-based Intellivisit, which developed an artificial intelligence that integrates health care with daily life; and West Bend-based Spaulding Medical, which aims to improve cardiac care accessibility. Making the pitches were entrepreneurs and early employees at these fledg15
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Alana Platt presents her Whitefish Bay company, Classmunity, to potential investors at the 2016 Early Stage Symposium.
ling firms, most of which are working on their series A funding rounds. Intellivisit, founded in 2014, has tested its virtual health care technology on more than 1,000 patients and has brought two physician groups on board as customers. The company has grown to eight employees and has raised a total of $2 million from two angel capital rounds. It’s time to raise a series A round, so it can scale and deploy its technology to other provider groups, hire more employees and move faster, said Drew Palin, chief medical officer. Intellivisit is currently crossing the valley of death. “We need the money. VCs want a good investment,” said Palin, who has helped start four companies. “So you try to work to get to a common ground. It’s risky for them if they go too early and it’s hard for us to grow if we go too late.” Intellivisit is aiming to raise between $4 million and $6 million, and is just getting started pitching venture capitalists. Its founders have drawn upon their networks and narrowed down a few investment firms to pitch. One or two are in Milwaukee, four or five are in Chicago and a few are on the East and West Coasts. “Our experience is the Midwest, it’s a little more thoughtful, a little more friendly, a little more Midwest nice,” Palin 16
said. “But you still have to hit the right milestones, have the right market opportunities, present the right team to get anybody’s interest.” It could be challenging to raise up to $6 million from Wisconsin investors, though, since angel groups aren’t set up to give that amount of money. The state’s entrepreneurship ecosystem has adjusted as more angel groups entered the scene over the past 10 years, Palin said. “Angels and angel groups have kind of taken the place of venture capital,” he said. “They’re doing the earlier, high-risk investments. And the VCs have moved up the chain to kind of be more like private equity, where they’re doing later investments.” If some of the companies getting seed capital from the angel networks achieve successful exits, that could attract and drive additional venture capital investments in the state, Palin said.
Risky business When a new company is formed, the founder usually first raises money from friends and family, crowdfunding or a private investor. After that initial seed capital, the company moves on to the institutional investors. Among those are angel investors, groups of wealthy individuals who make B i zT i m e s M i l w a u k e e
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small investments of about $1 million to $2 million to help new companies develop their products, find customers and move the product to market. Once the product is selling and the company is generating revenue and has a “story to tell,” it looks for venture capital, said Steininger. This is when it can begin raising a series A round. The space between angel capital and venture capital can feel like a yawning canyon, especially in Wisconsin. Venture capital is invested in companies with high growth potential and frequently jumpstarts job creation and economic growth. The Wisconsin Technology Council helped facilitate 380 meetings between investors and startups during a “speed dating” event at the Early Stage Symposium. “I know this is kind of a small sample and a small snapshot, but 70 companies had at least one meeting,” Daelemans said. “There’s a lot of excitement and there’s a lot of activity in the state and investors are looking for that next investment opportunity. So if it doesn’t happen, is it because we’re not connecting the right investors to the right entrepreneurs or is it because the ideas aren’t that good?” Part of the reason the valley of death is such a big problem in Wisconsin is the
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state’s conservative cultural roots, Sobotka said. “We’d like to see Milwaukee step up more,” he said. “It’s old German culture: we’re risk averse, frugal, don’t necessarily do things that we’re not comfortable with, and stay inside the box.” “What’s happening in default (without enough venture capital) is we go back to the angel investors and say, ‘Hey, we’ve got a million dollars in; we need to raise another million,’” said John Torinus, a general partner in Milwaukee-based Wisconsin Super Angel Fund. “It’s looking good. Would you double down? That’s a little tough to do because this could be a round for $2 million, $3 million, and it’s pretty hard to get that kind of money out of angels.” Torinus’ angel fund invests mainly in Wisconsin businesses, since it has the proximity to connect those companies to investors, banks, customers, professional services providers and other resources, he said. There is also plenty of opportunity to get in on the ground floor of Wisconsin businesses. “It’s sort of a paradox,” he said. “Because there’s so few players here, it’s a good place for the players who are here. We don’t go priding ourselves on how many deals we turn down. We like to do deals and we like to do Wisconsin deals. “I wouldn’t feel too comfortable starting a company in Indianapolis. We’re touching and feeling and we’re interacting with these guys every week. Local money, in a way, is better than far away money.”
Seeding growth In September, Milwaukee entrepreneur Bryant Randall wrote a LinkedIn post titled “Why Milwaukee sucks for startups.” Randall doesn’t pull any punches while telling the story of his unsuccessful attempts to raise seed and angel capital. He talked to accelerators, he pitched a private bank, he jumped through hoops at government lenders, he presented to angel investors. But no one would give him a dime for his startup, Northern Elements, which sells modern, bioethanol fuel-burning furniture online. Randall previously started an audio/ video resequencing agency called Reverse Enginears out of his Milwaukee bedroom. He worked with companies like Google, Showtime and Microsoft. But this is the first time he’s had to raise money. “It’s been really bad,” he said. “I used to
work out west a lot with Disney and Pixar, a lot of movies, and I’ve never seen a city so much in its own way as Milwaukee. My honest advice to any young entrepreneur would be: ‘leave.’” Most disconcerting was that Randall, who is African-American, would email investors and get immediate interest, but once they met him face-to-face, they weren’t as engaged. “I think it’s the investment community. Our conservative culture, bundled together with our propensity to make everything about race,” Randall said. “They would always call us back, sometimes the same day. But the minute that they saw our face, it always was so many excuses.” But when Randall emailed West Coast flash sale retailer TouchofModern.com, he quickly got a placement on the company’s site and had sold $10,000 worth of product in five days. No paperwork or protracted process required. Northern Elements is now working to get crowdfunding through a Kickstarter campaign, which was 10 percent funded after its first week, Randall said. “It’s just super conservative and all this talk happens and quite frankly, especially with millennials, (Wisconsin investors are) getting left behind,” he said. “They’re not keeping up with the speed of business. The new business economy is completely antithetical to the slow Wisconsin glad-handing…this old boys’ network. You don’t become successful because of Milwaukee, you become successful in spite of Milwaukee.” Platt, the co-founder and chief executive officer of Classmunity, has only just started raising seed funds, but has had the opposite experience. “This is my first startup company, so I don’t really have a lot to compare it to,” she said. “The biggest thing that I’ve been seized with so far is how supportive different groups have been. In Wisconsin, there seems to be a real emphasis on paying it forward and trying to help each other.” Platt pitched her startup, a fundraising platform for school districts founded in 2015, for the first time at the Early Stage Symposium. “We had been previously contacted by some investors, so we chatted with them and got a sense for what they’re looking for, but that was kind of our kickoff,” Platt said. Classmunity has two employees, plus five founders, and has six school districts paying for its service as of May.
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Paul Royal, founder of Menomonee Falls startup NewOz Big Data Analytics, presenting to potential investors at the Early Stage Symposium.
So far, Classmunity has operated on a few hundred dollars from each founder and a two-part Ideadvance seed grant totaling $75,000 from the University of Wisconsin-Extension. Since its Early Stage pitch, Classmunity has received interest from a number of different investors and is setting up meetings to tell them more. Platt has thought ahead to the series A round and knows Classmunity will have to prove its concept further before it can get to that level. “Everything that we’re looking to do, it’s all based around customer acquisition and growth because we know that we need that as a company and we know that is going to make us desirable for a series A round,” she said. “We were warned to expect Midwest investors to expect your idea to be further along. Here, people expect you to have revenue, and your cost of customer acquisition is less than what you’re bringing in, and you actually have a product that people are willing to pay for.”
Good ideas attract money Tim Keane, director of Brookfieldbased Golden Angels Investors LLC, says it shouldn’t matter if Wisconsin has enough home-grown venture capital, when the best startup ideas will attract w w w.biztimes.com
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funds from afar. If out-of-state venture capitalists want to invest in a Wisconsin company, state lines aren’t stopping them, Sobotka said. Money finds good deals, wherever they are. Wisconsin may have a lower risk appetite than other regions, Keane said. Culturally, Boston or Chicago might have more risk takers. Probably, startups need more customer proof here than in California. “There’s a lot of money around that’s just more comfortable being in the stock market or being in real estate rather than startups. Startups are risky. We lose 50 percent of the time,” Keane said. “It kind of depends on who you ask,” Daelemans said. “If you talk to investors, they’ll say they don’t have enough good companies to invest in; if you talk to entrepreneurs, they’ll say there’s not enough money available.” “Where you stand depends on where you sit,” said Cory Nettles, managing director of Milwaukee-based Generation Growth Capital Inc. “The investment community feels there is enough (venture capital). The entrepreneur who’s told ‘no’ doesn’t. “It’s always nice to have more capital, but all the capital in the world without the ideas and the entrepreneurs and the ecosystem to support it doesn’t really move
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the needle.” Not every investment starts with an entrepreneur and a venture; existing businesses with the infrastructure and reputation to succeed are a less risky investment, and some investors are attracted to that, he said. Like Nettles, Jerry Jendusa, co-founder of Wauwatosa-based consulting and investing firm Stuck Inc., is one of those more cautious investors. He prefers to acquire or invest in a more established company and then use traditional strategic methods to help it grow. “In our particular case…we’re believers in the management team and the tools, their current customers, and creating ‘aha’ moments that could help a company grow,” Jendusa said. “It’s just a different thought process. We can be a patient investor, not expecting a big return really quickly.” Entrepreneurs have a stake in whether they get funded, Kirgues said. They need to convince venture capitalists that they’ll get a good return on their investment. And that happens by creating scalable business models and products that are fundable. Kirgues said universities could do more to help students create new companies, forming a funnel of entrepreneurship that could attract venture capital. 17
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Tom Still, president of the Wisconsin Technology Council, introduces investors to startups seeking their series A round funding at the Early Stage Symposium.
“I don’t think there’s enough accountability about where the community’s investing resources to facilitate more startup creation and the outcomes those organizations are achieving,” he said. “I think everyone who takes economic development dollars related to startups should be accountable to one metric, which is how many of your startups receive angel and venture financing.”
other Milwaukee entrepreneurs who have done it for themselves, bootstrapping their ideas into major names in the Wisconsin business world. “They created thousands of jobs and you know what they all have in common?” Steinger asked. “They all have in common that they built profitable businesses right from the get-go.”
Other options
Torinus has been brainstorming with a group including the Wisconsin Economic Development Corp. and the Milwaukee 7 regional economic development partnership to determine how to build up a better venture capital pool for Milwaukee’s entrepreneurs. Among the ideas that have been proposed by stakeholders across the state: »» Offering loan guarantees like those obtainable from the U.S. Small Business Administration or the Wisconsin Housing and Economic Development Authority, which could help a business obtain bank financing. »» Big companies could invest in smaller counterparts that are coming up with innovative industry solutions, and could eventually be strategic acquisition targets. »» Foundations could designate that their investment portfolios’ alternative investments go to Wisconsin startups.
“If you don’t get that next stage, things get ugly,” Steininger said, which is why startups should think ahead on funding. “Long before you start your business, you have to think about: What are you going to do after angel?” There are other pathways to funding that are often overlooked, Steininger said. Beyond the traditional funding rounds, early stage companies can seek capital from crowdfunding, contests and business grants, credit or a loan, an incubator, a corporate investor, an interested distributor, a barter deal or a customer grant. “That’s the problem. There’s too many entrepreneurs starting companies thinking about making a boatload and exiting. They don’t think about profit. They think about investor capital because that’s where they want to get their money and get out. That’s sad,” Steininger said. He pointed to Joe Bartolotta, Barry Mandel, Sue Marks, George Mosher and 18
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»» Raising the limits on early-stage business investment credits, which can be claimed by those who invest angel or venture capital in a young Wisconsin company that meets certain criteria and has the potential for significant economic impact and job growth. And while there is a need for additional venture capital to help grow Wisconsin’s early stage companies, the state’s startup scene has come a long way from just 15 years ago. At that time, there were no incubators, accelerators or campus entrepreneurship programs, Torinus said. “Entrepreneurs need two things— they need a support system and they need capital,” he said. “Today, there’s a very nice support system across the state. “When I hear dearth (of available venture capital), I don’t like that word because we’re so much better than we used to be. That doesn’t mean we couldn’t use more capital. We could use 10 more of my fund.”
Series A seekers “The ‘valley of death’ seems to be going on forever today,” Steininger said. “Twitter has never had a profitable day in its life. It’s still living on investor cash. It’s a problem in Milwaukee; it’s a problem nationally.” In Wisconsin, part of the reason for the long-lasting valley of death is the difficulty of obtaining bank capital in the tight regulatory environment, Torinus said. Even if a company has receivables, collateral and equipment, it’s a tough sell. “Theoretically, you become bankable,” he said. “The truth of the matter is it’s not in the current mission or business space the banks want to be in. It’s especially hard because the regulators at state and federal levels are being especially scrupulous, maybe overly scrupulous, about any deal that has some hair on it, some risk.” Torinus has vouched for companies his angel fund has invested in as they seek to get to the next level by obtaining bank or venture financing. With revenue, a proven market and some customers, many companies are growing quickly and could use some operating capital to help them expand. “Every entrepreneur that comes in shows you his hockey stick,” Torinus said. “They’re zero today and they’re going to be $900 million in three years. We only have a few companies that have met their original hockey stick.
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“Every one of them’s different but they’re generally at the point where they’re starting to expand. You’d love to get debt capital versus equity capital because it’s less expensive and it’s not dilutive.”
Badger battle In 2015, 128 Wisconsin companies received some kind of seed or series A funding, according to Daelemans, who tracks Form D filings, investor surveys and announcements. Of the 128, 70 of them are in the greater Madison area, while 36 are in southeast Wisconsin. In 2016, Daelemans has so far tracked 64 companies receiving funding, 44 of which are in Madison and 18 of which are in southeast Wisconsin. “There’s a large gap between Madison and Milwaukee, maybe not in dollars invested, but in the number of startups,” Daelemans said. Madison’s startups are spread throughout the metropolitan area, while most of Milwaukee’s startup activity is concentrated in the Historic Third Ward and in Walker’s Point, he said. That could contribute to the less prominent entrepreneurship ecosystem in Milwaukee, he said. “It seems that the states around us, the states that we’re sort of ‘competing with’ or that we’re measuring ourselves against, it’s hard, in my opinion,” Daelemans said. “If you add Milwaukee and Madison together, we’d still be a small city compared to Chicago or Minneapolis-St. Paul or Detroit. Having that separation (between Milwaukee and Madison) doesn’t really make it easier.” “Milwaukee desperately needs better community leadership around entrepreneurship activities,” Keane said. “We have too many people trying to do their own thing and not enough proven expertise. It’s like talking to a neurosurgeon about dermatology.” “Madison has a good chance of being a health care IT hub over the next decade, with Epic being there,” Sobotka said. “There’s just no way around that. Madison does have a little better vibe right now. It ebbs and flows. Is there greater activity right now, so it seems, in the Madison area? Yeah.” “I don’t think there is any Milwaukee and Madison (competition),” Keane said. “Nobody that I’ve ever met said, ‘We will fund your company if you move down the road to Madison.’” n
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Company valuations may have reached a peak Some experts expect bubble to burst
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ompany valuations have been steadily increasing over the past several years and a seller’s market has taken a strong hold. Now, there are signs this cycle has reached its peak, and some experts think EBITDA multiples have become inflated and the bubble could burst when the economy hits turbulence. “We’re starting to see different structures and prices that defy logic a little bit,” said Chris Riegg, partner at investment bank Promontory Point Capital in Milwaukee. “When you see a Riegg time when you have high multiples and money chasing deals,
BY MOLLY DILL, staff writer
typically when you’re trying to get as much return as you can, you’re going to put a lot of leverage on it,” said Bill Penkwitz, also a partner at Promontory Point. For one recent deal Promontory Point completed, New Berlin-based Pieper Electric Inc.’s June acquisition of Green Bay-based HiTech Controls and Manufacturing Solutions, the firm had to vet more than 100 companies to find one that was a good strategic fit, a good value for the seller and a great return for the buyer, Penkwitz said. There were many Penkwitz potential acquisitions on which the multiples were too w w w.biztimes.com
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high to make sense. PPC helped Pieper reduce the list to 16 potential targets and then three, said Rick Parra, president and chief operating officer of Pieper. The primary consideration was assuring the company culture was a fit and the firms would integrate well, but then financials came into the mix. “The other two that made up the (top) three were a little bit smaller and a little bit less mature, I’ll say, in their business life cycle, so HiTech, clearly the cultural was the closest fit to begin with,” Parra said. “When it came to valuation, looking at HiTech, it was a combination of meeting our needs and the needs of the seller.” Even if a recession hits, Parra feels confident in the final choice Pieper made
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and its future prospects in the automation market. “We’re very comfortable that we made a good decision here,” he said. “It was a strategic move for us to go there and we think that market will grow at a pace different from our core business and that’s why we focused on that industry.” Most experts agree that valuations are especially high at the moment, but some are hesitant to call them unwarranted. “Bubble’s a hard word to use until it pops, and then you can call it a bubKintis ble,” said Tom Kintis, president of CGK M&A Advisors in 19
Waukesha. “In my experience over the years, private company valuations track with public company valuations and the fact that we’re Emory Jr. over Dow 19,000, really all you need to know is that private company values are very high, probably at all-time highs, just like the public company values,” said John Emory, Jr., president of investment bank Emory & Co. LLC in Milwaukee. As far as leverage, most deals are still appropriately structured, he said. “I am seeing more aggressive lending currently than in the past, but not a higher proportion of debt, because the overall price is higher,” Emory said. “I’m not seeing reckless lending. Lenders are still being disciplined, but are stretching a little more than they may have the last few years.” Of the four deals he’s recently closed, Kintis said none of the buyers were borrowing more than 2.5 times EBITDA for the purchase. When debt makes up 3 or 4 times EBITDA, then it becomes cause for worry about overleveraging the transaction, he said. “People are certainly using leverage, but I wouldn’t say that it’s overleveraged,” said Victoria Fox, managing director at MilwauFox kee investment bank Eisen Fox & Co. LLC. “The difference that we see is that buyers are putting in more equity.” A combination of low interest rates and a competitive market, in which strategic buyers and private equity firms alike have excess capital to invest, has contributed to high valuations and unique deal structures. “There’s so much money out there, you can actually put more equity into the deal rather than borrowing money from the bank,” Kintis said. “Not only does private equity have a ton of money, banks have so much money they don’t know what to do with it.” “Interest rates are still and have been very low, which helps companies take on larger amounts of debt at lower cost,” Emory said. 20
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When a company does sell, particularly on larger deals, multiples are at what some consider record levels. “I’ve seen stuff that used to go for five now going for six times (EBITDA). Do I think it’s a little high? Yes, especially if we’re going to hit a recession soon,” Kintis said. “I’ve been doing this since ’87 and I’ve never seen multiples, on a consistent basis for companies, this high.” But Fox thinks valuations could rise even higher, at least in her niche. “For the deals we do, kind of the lower middle market, the values I think are still on the high end, but we’re not seeing crazy multiples like some of the larger deals are seeing,” she said. “While it’s a good valuation market…it’s hard to say if you’re at the peak or not, but we’re certainly at a high point.” “I’m not sure that multiples are necessarily record high, public company multiples aren’t, but values are and that’s because earnings are high,” Emory said. “Private equity groups largely think we are in a pricing bubble, that prices and multiples are unsustainably high, so they’re trying to sell and have been selling for the last few years any companies that are positioned appropriately in their life cycle to sell.” Most experts don’t expect the good times to end in the near future unless there is a recession or major tax change. But several cautioned it’s difficult to predict when a peak will become a valley. “There’s nothing out there that I see that will change this,” Fox said. “Multiples have been up in this range for a while.” “The multiples are still solid as a rock,” Kintis said. “We’re still at that high level.” “I’ve never had this many calls from private company owners wanting to start a sale process as right after this election,” Emory said. “You need to expect that this strong selling environment is going to last a substantial amount of time when you start a sale process. If you start to get nervous that we might have a recession in two years, then you need to start now.” “The likely cause of a recession would be triggered by international tension,” he continued “If we end up in a heated situation with a major foreign power, the stock market could go down, which could trigger a real recession. That’s something you just can’t know. When the door shuts, sometimes it shuts hard and fast for these owners.” n
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Wisconsin banks hopeful about proposed Dodd-Frank rollbacks
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BY MOLLY DILL, staff writer
resident-elect Donald Trump has promised to eliminate the DoddFrank Wall Street Reform and Consumer Protection Act implemented in 2010 to atone for the banking industry’s role in the Great Recession. If he succeeds, what would that mean for the Wisconsin banks that have been dealing with the regulations, hiring new employees to manage them and completing mergers to keep up with them? According to the Wisconsin Bankers Association, there have been 20 Wisconsin bank mergers announced in 2016, almost double the 12 announced in 2015 – and 2015 was a record year. Many of the mergers were among community banks,
and a commonly cited reason was the increased cost of complying with heightened regulations. While a mix of factors led to Brookfield-based North Shore Bank’s recent acquisition of West Allis-based Layton Park Financial Group Inc., parent McKenna company of Layton State Bank, the smaller bank’s regulatory burden was one of them, said Jay McKenna, president and chief operating officer of North Shore Bank. Many banks have increased hiring in
their compliance departments as DoddFrank has rolled out. Green Bay-based Associated Banc-Corp, for example, has hired about 150 compliance employees just over the last couple of years to keep up with increased regulations. Since 2010, the most significant increase Walker in hiring at the bank, which has a total of 4,477 employees, has been in the compliance area, said Sara Walker, senior vice president, senior portfolio manager and chief economist at Associated Bank.
“Not specifically related to DoddFrank itself, but (due to) a lot of the regulations that came forth from the regulatory environment, yes, we’ve definitely added to our compliance staff over the years,” McKenna said. “I think what the banking industry Oswald Poels has been looking for really since Dodd-Frank was enacted is some regulatory relief from it,” said Rose Oswald Poels, president and chief executive officer of the Wisconsin Bankers Association. “There are…still regulations
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that have not been written yet. It’s taken a long time to phase it in.” But phasing it out might be just as painful—and difficult to accomplish politically. “Today, what the banking industry is really hoping for is some continued tiered regulation and regulatory relief, and I don’t know that we’re necessarily looking for an entire repeal,” Oswald Poels said. “(Dodd-Frank) covers big banks and big banks are still a target,” Walker said. “Politicians who could be tainted as supporting the big evil banks may not want to take that risk.” “I’m not sure a complete repeal is practical under the political situation, so I think a reopening of Dodd-Frank, given the lessons that we’ve learned since it’s been passed, would be very helpful,” McKenna said. He described it as “re-regulation” rather than “de-regulation.” A piece of legislation awaiting action in the U.S. House of Representatives called the Financial Choice Act would tweak the existing Dodd-Frank regulations to require
regulators to tailor their rules based on the risk profile of the banks, he said. “Dodd-Frank took sort of a one-sizefits-all approach, where JPMorgan Chase is regulated in the same way as North Shore Bank,” McKenna said. Some of the clunkiest regulations for local banks have been related to lending, such as the increase in disclosure documents a bank must give customers at a home closing. The WBA maintains Dodd-Frank should be rolled back a little for community banks and enforced in a tiered approach, based on a bank’s complexity and risk. “I think a very thoughtful approach is necessary to reviewing regulations and look for areas where there is too much burden, where we can look to reduce it,” Oswald Poels said. Several bank leaders have criticized the role of the Consumer Financial Protection Bureau, which was created to write and enforce Dodd-Frank rules, but which some have accused of going too far
and operating with little oversight. “I would imagine there’s a review of the Consumer Financial Protection (Bureau),” Walker said. “It’s had full reign. It has no one to report to and just working for a bank, I can tell you the impact and the friction … that adds to the economy, and friction doesn’t help the economy.” Proposed Home Mortgage Disclosure Act rules pending with the CFPB, for example, would add more data collection work for banks. It could slow down the pace and efficiency of mortgage loan closures, Oswald Poels said. “There’s going to be a lot more data points, over twice the number that we collect today,” she said. “We don’t believe that much data collection is even necessary and…some of what’s going to be mandated wasn’t even required by Dodd-Frank.” Several banking experts have described banking regulations as a pendulum that has swung too far in one direction. “The whole mortgage lending area, because of what happened in the Great Recession where housing was a big part of
the crisis, caused the government to kind of swing in the direction of overregulating mortgage lending,” Oswald Poels said. “We do believe in reasonable regulation.” “I think the regulations and the regulatory environment that came out of Dodd-Frank have had a very negative impact on the community banking sector, so to the extent there is relief from that, it should benefit the community banking sector,” McKenna said. “At the end of the day, burdensome regulation ends up costing the consumer, so to the extent there would be relief for the community banking industry, it should come back to the consumer in things like it should be easier to get a mortgage.” n
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Join us as we salute excellence, encourage innovation and recognize these deserving heroes!
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The annual BizTimes Media Health Care Heroes Awards salute the impact and accomplishments of people and organizations that are making a positive difference in the community on the front lines of health care. A breakfast awards program was held in their honor on Dec. 8. In this special section, we share their stories to call attention to their efforts and innovations. The Health Care Heroes Awards profile stories were written by Alysha Schertz. The photos were shot by Troy Freund Photography and Paul Gaertner of White Dog Photography.
Presented by:
Sponsored by:
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Table of contents
Advancements in Health Care
Corporate Achievement in Health Care
DR. KULWINDER DUA 26 Froedtert & the Medical College of Wisconsin
KENALL MANUFACTURING
Executive Leadership
Behavioral Health 26 27
AURORA HEALTH CARE GRAND AVENUE CLUB
Community Service AMBERLEA CHILDS DEREK MOSLEY AND JOANN EIRING ASCENSION COLUMBIA ST. MARY’S – STRONG BABY SANCTUARY
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DR. KEITH OLDHAM Children’s Hospital of Wisconsin
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Nurse WENDY BECKETT Independent home health care nurse
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DAVID BANDOMIR West Allis Fire Department
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Congratulations to Laurie Nowak and all of the Health Care Heroes for your tireless dedication to providing quality care and services.
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DR. DAVID MARGOLIS 34 Medical College of Wisconsin and Children’s Hospital of Wisconsin DR. AJAY SAHAJPAL Aurora Health Care
BECKY GILLING-KRAMSKY 35 ABCD: After Breast Cancer Diagnosis
MARK HOGAN 36 Children’s Hospital of Wisconsin LORRAINE KOFLER Kathy’s House
Thanks to our employment partners who provide our members with great jobs:
600 East Cafe BILTRITE Furniture Colectivo Colour Palate Derco Aerospace First Baptist Church of West Allis Foley & Lardner LLP Milwaukee County Division of Housing Outpost Natural Foods Redeemer Lutheran Church Renaissance Child Development Center RitzHolman CPA’s United Way of Greater Milwaukee & Waukesha Counties Join them by filling a position with a hard working individual, the best support available and an employment guarantee.
3939 S. 92nd St. • Greenfield, Wis. • 414.546.7367 clementmanor.com
www.grandavenueclub.org 414-727-3373 n
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Volunteer
These are our HEROES!
Sponsored by the School Sisters of St. Francis
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KAREN BIALAS 33 Aurora Medical Center in Washington County ROSEMARY WHITE-TRAUT Children’s Hospital of Wisconsin
lement Manor has been serving the Milwaukee area for more than 30 years. Our vision is to be a Life-Enriched Community – a place where every person is supported and encouraged to be their best.
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JACQUELYN FREDRICK BloodCenter of Wisconsin
First Responder
Physician
JENNIFER EGGERT Milwaukee Center for Independence LAURIE NOWAK Clement Manor
LIFE ENRICHED
Laurie Nowak, Clement Manor Adult Day Services and Brain Stretch Club Manager and Volunteer Coordinator
Health Care Staff
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Saluting those on the front lines s BizTimes Media completes another rewarding year of serving Milwaukee’s business community, it is our great privilege to conclude our annual event lineup with our Health Care Heroes Awards program. The winners of the Health Care Heroes Awards are heartwarming reminders of the great work being done in our community to save and improve lives in southeastern Wisconsin. It’s our pleasuree to shine the spotlight on these Health Care Heroes, who are doing things like: »» Conducting a breakthrough liver transplant. »» Repairing an esophagus while it was still inside the patient. »» Helping to build the largest family
justice center in the country. »» Making discoveries to improve outcomes for premature babies. »» Investing millions of dollars to improve behavioral health facilities and services. »» Educating people about breast health. »» Helping people with mental illnesses get jobs. »» Leading a national task force to create benchmarks to evaluate the ability of health care facilities to perform pediatric surgeries. »» Finding ways to uplift children who are fighting cancer. »» Combining blood and organ donation organizations. »» Creating a special kind of light to kill bacteria in health care settings.
»» Leading an effort to teach people r about how to perform hands-free ye Me CPR. n Da »» Helping patients unable to eat on their own. »» Spending extensive time to help about organ transplants. breast cancer patients. »» Working to reduce Milwaukee’s in»» Going the extra mile to serve families fant mortality rate. of patients receiving home health care. »» Training and managing volunteers to It is an honor to recognize these inserve retirement community residents. spirational individuals and organiza»» Overseeing a nursing staff, while tions in the spirit of the holiday season. also working on the front lines of Please take a few moments to read their health care. stories here. And if you meet them, be »» Volunteering, at age 85, for an orga- sure to thank them for their service. They nization that provides housing for deserve it! patients and caregivers. »» Donating a kidney, then working Dan Meyer with the recipient to raise awareness Publisher, BizTimes Media
Building Things That Matter It’s our business to help people with the medical devices and services we create; but it’s our compassion that drives us to believe in community service. GE Healthcare employees contribute thousands of volunteer hours every year in southeastern Wisconsin. We’re focused on making personal connections and delivering a brighter outlook for future generations through our involvement in education, health, community building and innovation.
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advancements in health care: Dr. Kulwinder Dua Professor of medicine, Medical College of Wisconsin Gastroenterologist and director, Froedtert Hospital Dr .K
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oday, a 33-year-old man can eat and swallow normally thanks to years of work conducted by gastroenterologist Dr. Kulwinder Dua and his team at Froedtert Hospital. For the first time ever, Dua and his team successfully repaired a seriously damaged organ, in this case an esophagus, through regeneration while it was still inside the patient. The successful operation has the potential to change the way throat maladies caused by cancer, birth defects or trauma are treated in the future.
“Our aim was to regenerate the esophagus in the body, and the outcome was full-thickness regeneration,” Dua said. “This is a first-in-human operation and one that we undertook as a lifesaving measure once we had exhausted all other options.” Dua also is director of the advanced endoscopy program at Froedtert and a professor of medicine at the Medical College of Wisconsin. In 2007, a 24-year-old patient was admitted to Froedtert with an inability to swallow due to a life-threatening infection in his esophagus. An earlier car accident, which left him partially paralyzed, caused the infection. The infec-
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tion resulted in a severely disrupted upper esophagus, which made it difficult for the patient to swallow or eat. Historically, surgery to remove a cancerous or infected esophagus would require pulling the stomach into the chest to re-establish the patient’s gastrointestinal tract, a procedure that causes many significant and lifelong side effects. Dua treated the damaged organ by stimulating regeneration. He used FDA-approved self-expanding metal stents to bridge the damaged segment of the esophagus. The stents acted as “scaffolding” for donated human skin regenerative tissue, muscle
and plasma produced from the patient’s own blood that helped stimulate growth and promote healing and regeneration. After four years, the stents were removed and Dua found the esophagus had regenerated. “The approach we used is novel because we used commercially available products which are already approved for use in the human body and don’t require complex tissue engineering,” Dua said. As regenerative medicine continues to advance, led in part by Dr. Dua and his team at Froedtert, regeneration of the esophagus has a promising future as an alternative treatment for some patients. n
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Behavioral Health: Aurora Health Care 750 W. Virginia St., Milwaukee
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hysicians at Aurora Health Care recognize the growing need for behavioral health care services in the community. In fact, 63 percent of physicians report seeing behavioral health issues in their practice each and every day. That is why Aurora Health Care has invested heavily in inpatient, residential and outpatient behavioral health services. In 2015, the company announced a $35 million project to improve the Aurora Psychiatric Hospital Campus in Wauwatosa. The project, which will be completed in 2018, will include renova-
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tion of the hospital to increase capacity for additional patients and staff, a new parking structure, and replacement of the Dewey Center, Aurora’s aging residential substance abuse and rehabilitation facility. The project will also include replacement of the aging Alumni House, which is used as a short-term sober living facility. Additionally, Aurora wants to deliver behavioral health care to more people. The company recently launched partialhospitalization and intensive outpatient behavioral health programs in Sheboygan and Glendale. Aurora is taking steps to change the culture of the health care space as it reB i zT i m e s M i l w a u k e e
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lates to behavioral health. With an expanded focus on behavioral health services, Aurora hopes it will become more integrated into primary care services. Whenever possible, primary care physicians at Aurora work with patients experiencing mild to moderate behavioral health issues that manifest in symptoms like panic attacks and shortness of breath. Doing this allows specialists to focus on more acute behavioral health cases. In 2015, Aurora provided $6.6 million in grants through its Better Together Fund to AIDS Resource Center of Wisconsin, the Benedict Center, Bread of Healing Clinic, Lake Area Free Clinic, Outreach Community Health Centers,
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Penfield Children’s Center, the Salvation Army and other health centers and free clinics throughout the state. The funds helped community-based providers improve access to primary care and behavioral health services. A new round of Better Together funds will be announced again this year. Aurora knows behavioral health care is a critical component to the overall wellbeing of individuals and communities. The company is committed to furthering the conversation, reducing stigma, and helping community and government leaders address issues associated with behavioral health and substance abuse. n
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Behavioral Health: Grand Avenue Club 210 E. Michigan St., Milwaukee
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ne in every five people will struggle with mental illness, loss of confidence and isolation at some point in their lives. The Grand Avenue Club in Milwaukee offers those living with a mental illness a place to come and actively participate as part of a community. The Grand Avenue Club is open 365 days a year, including all major holidays, and strives to help members become productive, contributing members of not only the club, but also society. “Because of GAC programming, people with mental illness move away from social isolation, marginality, fatalism and despair, and the sense that life
has little meaning,” said Rachel Forman, executive director. “The club provides Milwaukeeans who have been derailed by mental illness with opportunities that are key to recovery, and a life that is satisfying and vocationally productive.” Club members receive stimulation, support and opportunities at no cost to them, their families or their public or private health insurance plans. Members voluntarily work alongside a small Grand Avenue Club staff to maintain operations of the club yearround. They do light maintenance, run a lending library, clean, assist with financial management, remove snow, serve as board members, prepare lunch and
breakfast, publish newsletters, enter data, give tours to visitors and prospective members and conduct orientations, Forman said. Additionally, the club has established relationships with local employers like Foley & Lardner, Outpost Natural Foods, Derco Aerospace Inc. and Pick ’n Save, and educational institutions including Milwaukee Area Technical College and the University of Wisconsin-Milwaukee, where members with an increased sense of self-confidence and purpose can go for transitional jobs or to pursue additional education. The unemployment rate for adults with mental illness is approximately 80
percent. The Grand Avenue Club continues to prove these individuals can become self-sufficient and valued employees in the local community. “We are proud that GAC contributes to the enhancement of the Milwaukee community,” Forman said. “GAC members continue to value work and self-sufficiency as a means to standing tall among others. Our members are not only fully integrated into the workforces of our employment partners, but are earning more than $1 million in taxable revenue and have good attendance track records.” n
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2017 EDITION
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Community Service: Amberlea Childs Program manager, Kohl's Conversations for the Cure Susan G. Komen Southeast Wisconsin Am
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years in a full-time capacity as program manager for Susan G. Komen Southeast Wisconsin’s Kohl’s Conversations for the Cure. She travels to schools, churches, businesses, community centers and health fairs throughout southeastern Wisconsin to educate women and men on becoming active participants in their health and the importance of getting screened. She works to dispel myths about breast cancer, recruits and trains volunteer breast health educators, and has formed several new partnerships with community organizations to reach new
mberlea Childs was just 28 when she participated in her first Susan G. Komen three-day walk event. The walk ignited her passion for the organization and she would eventually go on to volunteer as a breast health educator, but what she didn’t know is that at the age of 36 she would be diagnosed with breast cancer herself. Childs has been educating the greater Milwaukee community about breast health and screening recommendations for nearly 15 years, first as a volunteer breast health educator, and the past five
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audiences. At the time of her own diagnosis, Childs had been a breast health educator for almost 10 years, talking to people in the community about knowing their bodies, knowing the symptoms and getting screened. When she was diagnosed, “I was very aware that something was very wrong,” Childs said. One in every eight women will get breast cancer in her lifetime. Kohl’s Conversations for the Cure, a partnership between Komen Southeast Wisconsin and Kohl’s Cares, has educated more than
15,000 people in southeastern Wisconsin. Childs has personally impacted more than 4,000 individuals through her work. At least a third of those people have gone on to get a breast cancer screening, many of whom were actually diagnosed with breast cancer earlier than they would have been without Childs and the outreach services they received from Conversations for the Cure. Today, Childs is happy and healthy and feels much more in control of her life, she said. Her personal breast cancer story has helped her reach out to others in similar situations. n
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Community Service: Judge Derek Mosley & Judge JoAnn Eiring
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Milwaukee Municipal Court Judge Town of Brookfield Municipal Court Judge
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unicipal court judges Derek Mosley and JoAnn Eiring are heroes not just to each other, but also to the thousands of people throughout the country waiting for an organ transplant. Mosley and Eiring met at a judicial seminar in 2003 and became instant friends. In the years following that first meeting, their friendship grew. Their families became friends; they spent holidays and birthdays together, and ultimately grew to consider each other family. In September 2014, Mosley was diag-
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nosed with kidney failure. Mosley’s father and grandmother passed away from kidney failure, so it runs in the family. For the next two years, Mosley received dialysis for 10 hours every night. He slept on his back and worked during the day, he said. A transplant was his only option for survival. He was on the organ transplant list, but was told the wait could be up to six years. Approximately 122,000 people in the U.S. are awaiting a life-saving organ transplant. Approximately 101,800 of those people need a kidney. Mosley’s family and many friends B i zT i m e s M i l w a u k e e
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were tested, but nobody was a match. Until Eiring. Despite being almost complete physical opposites – Mosley a largeframed African-American man and Eiring a small-framed Caucasian woman – it was determined Eiring was a match. On July 20, the kidney transplant took place, saving Mosley’s life. Dr. Michael Zimmerman, kidney transplant program director at Froedtert & the Medical College of Wisconsin, performed the surgery. Milwaukee Mayor Tom Barrett named July 20, 2016, “JoAnn Eiring Day” for her selflessness. But it’s the story be-
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hind the story that has really impacted both Eiring and Mosley. At a time when divisiveness and negativity permeate so much of daily life, the two have made it their mission to bring people together and promote the importance of organ donation. The pair has used its story to raise awareness for organ, tissue and eye donation. Organs are not matched by ethnicity or gender and a greater diversity of donors can potentially increase access to transplantation for everyone. Zimmerman said he hoped this case would give hope to others in search of donors. n
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Community Service: Strong Baby Sanctuary/Ascension-Columbia St. Mary’s
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he infant mortality rate in this region is worse than 62 other countries around the world. African-American babies die before their first birthday at a rate three times higher than Caucasian babies. That’s why the work of the Ascension-Columbia St. Mary’s Strong Baby Sanctuary is so important. The Strong Baby Sanctuary recruits community churches to serve as sanctuaries for expectant mothers and their families. Serving primarily the African-American community, the sanctuaries work to provide resources to prevent premature and low-weight births and unsafe sleep-
ing conditions–both significant factors in infant deaths. Through the Blankets of Love program, the sanctuaries offer prenatal and parenting education, educate church volunteers and staff to help assist women, and coordinate needed supplies like Pack ‘n Play portable cribs, car seats and baby clothes for families in need. The sanctuary pantry also offers food and equipment for expectant mothers and occasionally hosts community baby showers to collect needed supplies for expectant mothers in the community. Penelope Stewart is the community outreach coordinator for the
Strong Baby Sanctuary program and, in collaboration with CSM Community Health Ministry nurse Julia Means, has helped grow the program since its formation. Stewart and Means help identify churches and partners for the program. The organization has grown from 10 churches in 2015 to 24 churches in 2016 and will reach more than 7,500 people this year with information and services. Additionally, Ascension-Columbia St. Mary’s, in partnership with Urban Church Wellness program, the City of Milwaukee Health Department, the March of Dimes Wisconsin Chapter,
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and the Milwaukee Lifecourse Initiative for Healthy Families, also sponsor the “Strong Baby Sabbath,” a day on which clergy members throughout the community deliver messages to their congregations that raise awareness about preventable causes of infant death, including premature births and unsafe sleeping environments. In 2015, 25 ministers and 85 churches participated in the Strong Baby Sabbath and reached more than 18,000 people with the message. n
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e, d Cliff Yahnk
Corporate Achievement in Health Care: Kenall Manufacturing 10200 55th St., Kenosha
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early one in every 25 U.S. hospital patients will contract an infection in a health care setting. In response to the need to address the increasing risk of hospital-acquired infections, Kenosha-based Kenall Manufacturing developed a new line of Indigo-Clean light fixtures specifically designed for operating rooms and other health care settings. Operating rooms represent a challenging sterile space because of the procedures being performed, the frequent use of the rooms and the compromised
immune systems of the patients. The Indigo-Clean fixtures can be installed into the ceiling of any room and provide bright, high-quality white light to illuminate the surgical field while a narrow spectrum of indigo-colored light also is emitted to disinfect the space. Unlike UV light, Indigo-Clean uses safe, visible light to kill harmful bacteria in the air and on hard and soft surfaces, The indigo color uses a wavelength of 405 nanometers to automatically, safely and continuously disinfect the air and all hard and soft surfaces in the room. Molecules within bacteria absorb the indigo light, which creates a chemical
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reaction that kills the bacteria from the inside. When the room is not in use the light fixtures can be switched to indigoonly mode, which provides a higher degree of safe disinfection. Froedtert Hospital, one of IndigoClean’s clinical partners, recently documented a 70 percent reduction in the number of bacteria living on surfaces in a trial of a room lit with Indigo-Clean fixtures. Additionally, the ECRI Institute included Indigo-Clean on its list of the top 10 technologies health care executives should watch in 2016. “Visible light disinfection has the
potential to completely change the way the health care industry battles hospitalacquired infections by providing continuous, safe disinfection of the air and hard/soft surfaces,” said Jim Hawkins, chief executive officer and chairman of Kenall Manufacturing. The light fixtures bolster the health care facility’s cleaning efforts and eliminate human error by continuously disinfecting as long as the light is on. There is no special or additional training required, the light is safe for patients and caregivers, and the room doesn’t need to be taken out of service in order to clean it. n
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Executive Leadership: Jacquelyn Fredrick President & CEO BloodCenter of Wisconsin
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or the past 15 years, Jacquelyn Fredrick has served as president and chief executive officer of the BloodCenter of Wisconsin. Under her leadership, the organization has grown tremendously. In addition to supplying much needed blood for the State of Wisconsin, she has worked to help expand the BloodCenter’s research and scientific capabilities, and has also grown its organ and tissue donation operations. “The BloodCenter will be 70 years old next year,” Fredrick said. “Our founders
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set out to serve every man, woman and child who could benefit from the services we provide. That is still what drives us. For us, it’s all about advanced patient care.” Today, the BloodCenter provides blood to 56 hospitals throughout 29 Wisconsin counties and offers needed services to underserved populations throughout the state. Fredrick also helped establish and served as president and CEO of Versiti, a strategic affiliation of four Midwest health care organizations that seeks to better meet the needs of BloodCenter of Wisconsin’s hospital partners. Versiti, a nonprofit holding company, is made of up of the BloodCenter of Wisconsin, Heartland Blood Centers B i zT i m e s M i l w a u k e e
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in Aurora, Illinois; Michigan Blood in Grand Rapids and Indiana Blood Center in Indianapolis. The Versiti affiliates serve more than 200 hospitals with blood and bloodrelated services. Versiti products, services and expertise often result in better patient outcomes and higher quality of services at a reduced cost. Additionally, Fredrick has been instrumental in the expansion and advancement of the BloodCenter’s Blood Research Institute – a premier center for the research and investigation of bloodrelated diseases and conditions, like sickle cell disease and hemophilia. Since its formation, the Blood Research Institute has made scientific breakthroughs for patients with heart
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disease, cancer, immune system disorders and blood diseases. She also worked hard to bring the Wisconsin Donor Network and the Wisconsin Tissue Bank under the umbrella of the BloodCenter. As a result, the BloodCenter of Wisconsin facilitates nearly 200 organ transplants annually and remains committed to providing safe and adequate blood supply to the region. Through her 15 years of leadership, Frederick has navigated an ever-changing and complex health care system. Her primary goal from the beginning has been to advance patient care by delivering life-saving solutions and expertise. In May, Frederick announced she would retire in early 2017. n
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Surgeon-in-chief Children’s Hospital of Wisconsin
Executive Leadership: Keith Oldham
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ach year, more than 5 million infants and children undergo surgery in the United States. Regardless of the type of surgery, research has shown there are fewer complications, better survival rates and shorter hospital stays when the surgeries are performed in a pediatric hospital. Thanks to Dr. Keith Oldham, surgeon-in-chief at Children’s Hospital of Wisconsin, families now have a way to check if a hospital is properly equipped to handle pediatric surgeries. Oldham led a national task force of
the American College of Surgeons that created national benchmarks and a process for hospitals to receive designation. Children’s Hospital of Wisconsin was one of the first two in the country to achieve the highest designation, Level I. This means the hospital can perform all types of procedures on the entire age range from newborns to young adults, including those with the most severe health conditions and birth defects. Pediatric surgery deaths and complication rates continue to be higher than for adult surgeries due to the complexi-
ties involved in operating on growing bones and bodies that metabolize anesthesia differently than other patients. Despite the risks, more than half of all pediatric surgeries take place at hospitals that do not focus on treating children. Oldham believes children in the U.S. should receive the surgical care they need in an environment matched to that their medical, emotional and social needs. Oldham joined Children’s Hospital of Wisconsin in 1998 and has helped grow and maintain Children’s as one of the leading pediatric hospitals in the country.
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“Wisconsin residents are fortunate to have a world-class medical center for children because of individuals like Dr. Oldham,” said Marc Gorelick, chief operating officer and executive vice president of Children’s Hospital of Wisconsin. “We should be equally proud that the success here in Wisconsin contributed to a process that will benefit families across the country. In the past year, I can think of no one else who has impacted quality care at such a high level or who has led a more important collaboration.” n
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First Responder: David Bandomir
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Fire captain West Allis Fire Department
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ccording to the American Heart Association, approximately 40 people go into cardiac arrest each hour outside of a hospital. Nine out of 10 of those patients will not survive. A person’s chances of survival are doubled if hands-only CPR is performed immediately, and fire captain David Bandomir of the West Allis Fire Department has made it his mission to raise the bystander CPR rate in Wisconsin through training and education. Hands-only CPR has been found to be equally as effective as traditional mouthto-mouth and bystanders are likely to feel
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more comfortable performing it. To perform hands-only CPR, a rescuer should push hard and fast in the center of the person’s chest, sinking in at least two inches at a rate of 100 to 120 compressions per minute. Bandomir routinely volunteers his time and energy in the community to spread the message and to train in hands-only CPR. He was instrumental in establishing the Milwaukee County Hands-Only CPR Initiative, which works to increase the availability of CPR training in the community. w w w.biztimes.com
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In February 2016, the initiative delivered CPR training bins that included a locally-produced training DVD, training mannequins and an automated external defibrillator trainer to firehouses and public buildings throughout Milwaukee County. The kits allowed for free, self-directed basic compression-only CPR training in the comfort of individual homes. Bandomir also saw a huge opportunity to reach people at the Wisconsin State Fair. In 2016, he put together a committee of local partners and was able to host a hands-only CPR training class every day
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of the Wisconsin State Fair. Together, the West Allis Professional Firefighters Association; Milwaukee County fire departments; the Milwaukee County Office of Emergency Management; Froedtert & the Medical College of Wisconsin; Anthem Blue Cross and Blue Shield Foundation; American Heart Association; and Project ADAM, which is based out of Children's Hospital of Wisconsin, provided training for more than 1,440 fairgoers, who are now equipped with the potential life-saving knowledge of CPR. n
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Health Care Staff: Jennifer Eggert Speech pathologist Milwaukee Center for Independence- Children’s Center
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he learns, socializes and even drinks chocolate milk with other children. “When we started with him, he could barely tolerate being in the same room with food,” she said. “He developed negative feelings about eating.” Turner started receiving services through MCFI’s Pediatric Skilled Nursing program, a service for children with profound medical conditions. Thanks to Eggert’s work, Turner can now attend the School for Early Development and Achievement, a public charter school through the University of Wisconsin-Milwaukee that welcomes
octors told seven-year-old Joshua Turner that he would never be able to eat on his own. He was diagnosed with eosinophilic esophagitis when he was just four. The disease manifests when food allergies and acid reflux cause a buildup of white blood cells in the esophagus, making it difficult to eat or even swallow. With the help of Jennifer Eggert, a children’s speech-language therapist at Milwaukee Center for Independence, Turner has made great progress and is now attending MCFI’s School for Early Development and Achievement, where
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students with and without special needs in a fully inclusive environment. Eggert worked with Turner and a medical team to first determine which foods he could tolerate and then gradually conditioned him to first touch and then taste the foods. They introduced new foods by having Turner talk about food, identify the smell of certain foods, and paint with foods like applesauce or pudding. Now he touches and tastes food on his own and is learning how to bite and chew as Eggert works with him on strengthening his jaw and tongue.
They are on track to add more foods back into his diet. Eggert is one of only five speech pathologists in the Milwaukee area certified to use VitalStim therapy. The process uses electrical currents to stimulate muscles that facilitate swallowing Turner is just one of many children with speech impairments and swallowing disorders whom Eggert has helped throughout her career at MCFI. In 2013, the Wisconsin Speech-Language Pathology and Audiology Association named her the Speech-Language Pathologist of the year. n
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Health Care Staff: Laurie Nowak
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or 11 years, Laurie Nowak has worked tirelessly to improve the lives of others through care and initiative at Greenfield-based Clement Manor. Clement Manor is a nonprofit organization and retirement community that offers a full continuum of services to promote the healthy aging of its clients throughout the community Like many, Nowak wears multiple hats, serving as the manager of the Adult Day Center and as volunteer coordinator for the organization. As manager, she supervises a staff of
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nine individuals who plan and implement daily enrichment activities that minimize isolation and improve cognition. Activities include chair exercises, table games, intergenerational music, lunch, snacks, socialization and other cognition-boosting activities. Through her work, Nowak fosters creativity and expression. As volunteer coordinator, Nowak trains and manages 230 volunteers who lend a hand with activities, group outings, the gift shop and transporting residents around campus to meals, chapel and physical therapy. She also oversees the Brain Stretch B i zT i m e s M i l w a u k e e
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Club, a program she developed for those recently diagnosed with dementia. With a focus on early intervention and a goal of keeping individuals in their homes as long as possible, the curriculum Nowak created uses art, meditation and sign language to stimulate new learning and enhance cognitive abilities by supporting the social, educational and emotional needs of the residents. A typical day in the Brain Stretch program involves time for socializing, current events, memory recall, creative writing, physical exercise, art therapy and stress reduction techniques. Nowak is teaching residents at Clem-
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ent Manor computer skills, and also devised a walking program that supports nutrition and physical exercise. In addition, she has created a Care Partner Respite program, an Early Memory Loss Support Group and a new Maintain the Brain class. “With every hat she wears, Laurie improves lives by helping aging individuals stay productive and happy while supporting them and their families through the stages of dementia,” said Dennis Ferger, chief executive officer of Clement Manor. “Her team leadership, personal attention, resourcefulness and compassion make her a health care hero every day.” n
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Nurse: Wendy Beckett Wen
Independent in-home health care nurse
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endy Beckett is a nurse. She’s also a wife, mother, sister, neighbor, community advocate and to those who know her, a hero. Beckett works part-time as a pediatrics nurse in Waukesha, and also works as an in-home health care nurse for two families whose children have serious medical conditions. According to her sister, Lori Schubring, Beckett works six days a week, often volunteers to take on extra shifts, and then drives to take care of her in-home patients. “She truly loves her patients and her
work,” Schubring said. “Despite her demanding schedule, she never complains.” Home care nurses typically provide medical and personal care to individuals who are chronically ill, disabled or suffering from cognitive impairments. They offer companionship, administer medication, monitor vital signs, and support patients and their families. Beckett regularly goes above and beyond those services for her patients and their families. As an in-home nurse for a family with a child who has special medical needs, Beckett has offered to watch the other
children on occasion so the parents can enjoy a rare night out. She also has helped children make gifts for their parents, and helped a family raise money through a rummage sale, bake sale and raffle so the parents could purchase a special swing for their child that was not covered by insurance. She’s in the process of organizing another fundraiser for her current patient. Along those same lines, Beckett took the initiative to contact Special Spaces Wisconsin, an organization dedicated to creating dream bedrooms for children with life-threatening medical illnesses.
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The organization remodeled the bedroom of one of Beckett’s former patients, and is also looking to do the same for a patient she currently cares for. The renovations will help accommodate the children’s medical needs, while also creating one-of-a-kind dream spaces for them. For Beckett, it’s about much more than just caring for her patients’ medical needs. For her it’s about love, it’s about friendship and it’s about genuine compassion. n
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Nurse: Karen Bialas
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aren Bialas has been a valuable member of the region’s nursing community for more than two decades. Today, Bialas is a respected voice among nursing leaders at Aurora Health Care through her role as director of nursing at Aurora Medical Center in Washington County. She is committed to the system’s principle of shared governance and is focused on delivering the very best care
to her patients “I count on her voice, experience and enthusiasm every day,” said Terry Kabitzke-Groth, vice president of nursing at Aurora Medical Center in Grafton. Bialas serves as a preceptor for new managers, and Aurora’s commitment to quality patient care is at the center of everything she does. Bialas helps them learn the ropes and does so w w w.biztimes.com
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with patience and wisdom, KabitzkeGroth said. “She takes the time to be sure each new manager walks away with the core knowledge and skills he or she will need to do great work,” she said. Despite being the director of nursing, Bialas can often be found in patients’ rooms, helping out the nurses on her staff. She has led Aurora’s service commit-
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ment to be kind, respectful and courteous, and if she’s in charge of a project, you know it’s going to be quality, Kabitzke-Groth said. “Karen is respected and trusted by the nursing staff, by her leadership peers and by the doctors she works with,” Kabitzke-Groth added. “She is her own brand. She makes the hospital come alive with her effort, her engagement and her dedication.” n
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Nurse: Rosemary White-Traut Director of nursing research Children’s Hospital of Wisconsin Ro
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medicine, and other organizations. White-Traut has conducted more than 25 studies and shared her work in more than 200 presentations and 90 publications. Her research seeks solutions to clinical problems and as a nurse, her experiences allow her to identify gaps in care more easily than a traditional researcher. In one recent study, White-Traut addressed mother-baby interaction in a neonatal care unit. She studied the mother-baby interaction and created an intervention method in which mothers talk, touch, rock and make eye contact with their babies. The study showed the method improved feeding and growth in pre-term
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or 30 years, Rosemary White-Traut has dedicated her time and talent to making a difference for pediatric patients and families around the world. White-Traut, a nurse scientist and director of nursing research at Children’s Hospital of Wisconsin, has designed and implemented several studies and made discoveries to improve care and outcomes for premature babies and newborns. She regularly collaborates with physicians and interdisciplinary clinical teams, universities and schools of nursing and
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infants when they reached six weeks of age and shortened hospital stays, with fewer follow-up doctor visits. Premature infants are vulnerable to health complications including lung, heart, vision and neurological problems. Studies like White-Traut’s continue to expand the knowledge base and improve the quality of care these infants receive. She also has investigated other topics, including pain relief in newborns, infant feeding issues, newborn stressors and the effects of multisensory intervention on babies’ growth. Currently, White-Traut is investigating ways to prevent infections in infants who have undergone surgery.
Her work is a large part of the reason Children’s Hospital of Wisconsin has been named a magnet facility by the American Nurses Credentialing Center for three consecutive four-year terms. Her contributions have empowered nurses in the system to deliver the best and safest pediatric care. “Dr. White-Traut has a passion for nursing that is undeniable,” said Stacee Lerret, pediatric nurse practitioner at Children’s Hospital. “She is an exceptional role model for nurses and is committed to supporting nurse scientists. Her expertise and knowledge for advancing nursing research has been instrumental to me as I work to build my research career.” n
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Physician: Dr. David Margolis
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Professor of pediatrics, Medical College of Wisconsin Section chief, hematology-oncology transplant, Children’s Hospital of Wisconsin
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octor” is a title David Margolis holds dearly. He also is known as son, brother, husband, father and teacher. Margolis is a professor of pediatrics and associate chair of pediatrics at the Medical College of Wisconsin, as well as interim section chief for hematology-oncology transplant and head of the bone marrow program at Children’s Hospital of Wisconsin. He is a nationally known oncology physician, a mentor, a consummate professional and a tireless patient advocate. “He is fiercely loyal to his patients
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and his fellow caregivers, who hold him in the highest regard,” said John Cary, executive director of the MACC Fund, an organization with which Margolis also is heavily involved. Margolis has the ability to communicate effectively with all types of people, including doctors and oncologists all over the country, devastated parents and his patients. Many families have moved to the region specifically to be treated by Dr. Margolis and his team. He takes the time to answer emails from inquiring parents with personal phone calls. B i zT i m e s M i l w a u k e e
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He often provides counsel and advice, and sometimes a second opinion for parents and patients all over the country. At Children’s Hospital, his patients are some of the sickest children in the hospital, and yet Margolis knows attitude is everything. He gets to know his patients on a personal level, knows what keeps them motivated and makes it a point to engage regularly, despite his busy schedule. Recently, Margolis entered a Chicago Cubs fan’s room with a “W” flag and sang “Go Cubs Go” to make good on a bet. He’s also let patients color his hair when
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the Milwaukee Bucks made the playoffs, and he recently brought Pokemon Go to Children’s Hospital as a way for kids to get out of their rooms to exercise. Those experiences lets kids be kids, Margolis said. But it also helps with the healing process. Children who are up chasing Pokemon are not necessarily focused on the exhaustion or the recovery pain. They don’t realize they are walking laps or strengthening their muscles. The kindness and compassion he has for his patients and their families is unmatched. n
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he Centers for Disease Control and Prevention estimates there are approximately 3.2 million people in the United States living with chronic hepatitis C. The infection causes severe inflammation and damage to the liver over time. Patients living with chronic hepatitis C typically end up needing a liver transplant. The innovative and cutting-edge approach to treatment from Dr. Ajay Sahajpal, transplant surgeon and medical director of abdominal transplant at Aurora St. Luke’s Medical Center, is helping people all over the world. “The Economist” has recognized Sahajpal as a global Hepatitis C
Medical director, abdominal transplant Aurora St. Luke’s Medical Center
Physician: Dr. Ajay Sahajpal
Change Maker. He was the first surgeon in the U.S. to utilize a technique known as “En Bloc” or “together, at the same time” in which the kidney and liver are stitched together and then transplanted into the patient with a singular incision to the patient’s upper abdomen. The organs are transplanted as a single implant, versus the traditional technique in which each organ is implanted through a separate incision Historically, an abdominal surgery of this nature would come with an increased risk of complications, longer surgeries and a longer recovery time. The new En Bloc procedure allows
organs to better adapt to the patient’s body, while also allowing for faster recovery because of the single incision and the less invasive technique. “The Aurora St. Luke’s Transplant program is solely focused on providing the best outcomes possible for people in need of organs,” Sahajpal said. “We are constantly looking at how to improve the care we provide through innovation and better processes.” The procedure has been published in the American Journal of Transplantation and is having a ripple effect on the medical community. The Abdominal Transplant program at Aurora St. Luke’s Medical Center
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performs roughly 40 liver transplants each year. Surgeons across the nation and in Europe have been trained on the En Bloc procedure. The Economist’s The Path to Zero website and campaign, through which Sahajpal was named a Change Maker, recognized him as one of 18 global leaders who meet the program’s criteria for efforts that are innovative, replicable, scalable and financially feasible, and make a meaningful impact on the total elimination of Hepatitis C. n
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Volunteer: Becky Gilling-Kramsky
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ecky Gilling-Kramsky has only volunteered with ABCD: After Breast Cancer Diagnosis since June, but her impact has been swift and deep. She is more than dedicated – a truly special player, said Ginny Finn, executive director of ABCD. Gilling-Kramsky works for the organization faithfully three full days of the week. She has played an integral role in assuring ABCD delivers timely, top-quality peer support and peer
mentor services. Gilling-Kramsky offers client satisfaction follow-up, identifies new needed resources for those served by ABCD and also provides data analysis so upgrades to the organization’s services can be based on measured outcomes. According to Finn, Gilling-Kramsky’s volunteer work is not just tasks. “She augments the personalized services ABCD offers by spending extensive time engaged in supportive conversaw w w.biztimes.com
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tion and practical assistance with breast cancer patients and their loved ones,” Finn said. Gilling-Kramsky is a retired ICU nurse, and she approaches her volunteer work with the same sensitivity and professionalism she would have on the job. “This is no easy role for anyone, especially a volunteer,” Finn said. “Her impact reflects not only uncommon sensitivity, but a commitment of time and energy that is distinctive.”
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ABCD founded its mission on training and supporting a volunteer corps of peer mentors. It has been doing this work for the past 17 years. In her short tenure with the organization, Gilling-Kramsky has lifted the quality of services and provided muchneeded support to ABCD staff. “She exemplifies what we call a hero,” Finn said. “She’s reliable, thoughtful and someone who can change the whole dynamic. All she needs is a cape!” n
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Volunteer: Mark Hogan Board member Children’s Hospital of Wisconsin Ma
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tegic plan, the “care closer to home” initiative, its efforts in population health, the introduction of electronic medical records, and even the establishment of the new collaborative Sojourner Family Peace Center. “Mark was there, providing invaluable vision and leadership, always encouraging everyone to think bigger and do better,” said Peggy Troy, president and chief executive officer of Children’s Hospital. In 2013, Hogan helped Children’s obtain a $10.6 million tax credit for Sojourner Family Peace Center, which allowed it to build the new 72,000-squarefoot-facility in Milwaukee, the largest
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he future of Children’s Hospital of Wisconsin is bright. It will continue to provide compassionate, expert care to children all over the country in large thanks to Mark Hogan, secretary and chief executive officer of the Wisconsin Economic Development Corp. and longtime board member at Children’s Hospital. Hogan has played a role in almost every significant accomplishment Children’s has made during the past decade, including: the development and implementation of its first formal stra-
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family justice center in the country. The Sojourner Family Peace Center is Wisconsin’s largest nonprofit dedicated to domestic violence prevention and intervention. Nearly 10,000 victims of family violence are helped by the center each year. “Without Mark’s financial expertise and guidance, this invaluable community resource would not have become a reality,” Troy said. He has held various roles on Children’s board, including the strategic planning committee, the finance committee and the quality committee. Regardless of the position, Hogan brings the same dedication, passion and
relentless pursuit of improvement. “He is a respected catalyst for change who was never satisfied with ‘good enough,’” Troy said. Hogan believes Children’s Hospital – and the services it provides – is one of the most important assets in this community, and his work reflects that belief. His term on the board will expire at the end of this year, but his legacy and his relationship with the organization will continue. “For more than a decade, Mark has dedicated his time, talent and treasure to not only Children’s Hospital, but to all children,” Troy said. “That work will continue.” n
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Volunteer: Lorraine Kofler
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ive years ago, Lorraine Kofler was walking through her neighborhood when she stopped by Kathy’s House to see what it was about. The next week she started volunteering and hasn’t looked back. Kathy’s House is a nonprofit organization that provides housing for patients and caregivers visiting Milwaukee-area hospitals. Lorraine comes in at least two days a week. She checks guests in and out of the house, answers the phones and talks to guests. She does office work, cooks,
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cleans, does laundry and fundraises. “‘Volunteer extraordinaire’ is how we describe Lorraine,” said Patty Metropulos, executive director of Kathy’s House. “She has a graciousness and kindness to her that she extends to everyone at Kathy’s House – the staff, the guests, even the delivery people.” Kofler is 85 years old. She has involved her entire family, the residents of the San Camillo retirement community where she lives, and her alumni group from St. Michael Parish School to be part of the Kathy’s House community. This Thanksgiving, Kofler and her B i zT i m e s M i l w a u k e e
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entire family, along with other volunteers, prepared dinner for all the guests at Kathy’s House. “I talk to my family and friends about Kathy’s House all the time,” Kofler said. “And when they hear how much it means to me, they get involved.” In addition to her day-to-day volunteer work, Kofler volunteers at every Kathy’s House event, including the gala, golf outing, hosting an annual paper drive at San Camillo, and assisting guests during arts and crafts night. “I love being there, especially helping people who are going through a tough
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time,” she said. “We work really hard. We laugh, and cry sometimes, too, when a guest receives bad news. I’m sometimes exhausted when I go home, but it is a good exhaustion.” Kofler is an integral part in creating the “community” that is Kathy’s house, Metropulos said. “Lorraine adds caring concern and just the right touch to any situation she is in and to every person at Kathy’s House, making her one of our favorite people on Earth, as well as one of our favorite volunteers and a community treasure,” she added. n
strategies 2016 in review
Lessons learned on women in the workplace
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his column marks my final contribution to BizTimes Milwaukee for 2016. Readers who have followed my columns this year will have noticed I wrote solely about issues confronted by women in the workplace and the importance of implementing talent acquisition and development (emphasizing mentoring) programs for women. In my last column, I also raised some troubling statistics associated with educational and employment trends for men, especially young men. In this culminating column for 2016, I will offer some summary themes, based on my columns, as we look ahead to 2017. Looking back at this year’s columns, several themes emerge:
Feminist, masculinist, humanist . . . ? The response to my 2016 columns was interesting. Much of the feedback directed my way questioned why a late-career Caucasian male was spending his time stumping on behalf of women. People who asked that question, unfortunately, missed the point. I was not advocating solely for women; I was advocating for developing all employees, making the evidence-based argument based on labor statistics that focusing on women is a particularly wise idea, given that women are going to be the majority entrants to the workforce over the next few years. 2017 resolution: Fine-tune and augment your organization’s talent acquisition, management and development practices, with an emphasis on women!
Changing workforce demographics Related to the first theme, my 2016 focus on women was not simply to advance a personal agenda. The fact of the matter is that Wisconsin employers face a “brutal reality” regarding the changing composition of our workforce. This is not a new observation; we have known about this for a long time. Wisconsin has an aging workforce (i.e., a very high percentage of soon-to-exit baby boomers), we are a
“brain drain” state (i.e., young people, especially young women, take their degrees and get jobs elsewhere) and we lag behind the national average in terms of educational attainment (i.e., the percentage of our workforce holding a bachelor’s degree is lower than the percentage in the workforce of the U.S.). 2017 resolution: Embrace new entrants to the workforce by actively and positively assimilating the millennials, especially women!
A leadership challenge In light of the first two themes, leadership development and succession planning emerge as increasingly important priorities. Organizations must define and coordinate processes for identifying
for the human resources department to undertake to keep busy. Hiring, retaining, managing and developing employees to the fullest creates a competitive advantage. It involves coordinated collaboration among leaders throughout the organization. Top leaders must serve as effective sponsors of such initiatives (i.e., link them with organizational goals and provide resources). Human resources leaders must operate as effective program architects and implementers (i.e., design solid programs). Functional leaders must operate as catalyzing “career coaches” (i.e., fill the key roles of assessor, information resource, referral agent, mentor and evaluator). Finally, employees must act as “owners” of their development (i.e., adopt a proactive approach).
DANIEL SCHROEDER WOMEN IN BUSINESS ingly, America’s colleges and universities are examining their assessment practices, broadening them within the paradigm of competency-based education. A competency-based approach is the key; it is the vital link to viewing 21st century learners as “whole people” who are (or will very soon be) 21st century workers. 2017 resolution: Take a page from Jamie Merisotis’ book, “America Needs Talent,” and investigate the formulation of learning partnerships with area colleges
“ Hiring, retaining, managing and developing employees to the fullest creates a competitive advantage.” and developing individuals with leadership potential. Moving forward, succession planning (i.e., proactively deciding about successors, transitions, etc.) becomes more critical. Organizations must develop focused practices related to talent assessment, talent development and ongoing evaluation of results, all with an organization-specific focus (i.e., the focus should be on “this company,” “this culture,” and so on). 2017 resolution: Develop an organization-specific leadership development and succession planning model, emphasizing women!
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2017 resolution: Equip employees at all levels with the necessary knowledge, resources and mechanisms to operate as dynamic developmental partners!
Linking learning with the workplace Ultimately, my 2016 columns and the feedback I have received about them lead me to conclude that now, more than ever, stronger links must be made between the educational and employment sectors. A recent survey by the Association of American Colleges and Universities found that America’s employers want more than a college major when they hire an employee. They want broad skills (i.e., competencies), a mix of theory-based and applied learning and students who have had some “real time” experience (i.e., internships and applied learning projects). Increas-
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and universities. This certainly was an interesting year for me. I learned a lot along the way, particularly regarding some of the very real challenges that still exist for women in organizational settings and the need for organizations to offer more robust and dynamic developmental programming along those lines. I hope that in some small way, I was able to shed some light on this very important and significant matter, even if only to generate a discussion about the state of the situation and what actions might be taken moving forward. Best wishes for much success in 2017! n Daniel Schroeder, Ph.D. is president and chief executive officer of Brookfield-based Organization Development Consultants Inc. (www.od-consultants.com). He can be reached at (888) 827-1901 or Dan.Schroeder@OD-Consultants.com.
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strategies
Beware of an implosion Biggest threats may come from within
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he high seas of business have a breed of pirate known as the corporate raider. Active in the ’80s, these carnivores still prowl some 35 years later. Public entities have fortified their cannons with poison pill strategies and prayers for the white knight. Piracy was business as usual during the first globalization, the push westward to new lands and territory. During this second globalization, it is alive and well, not just near Somalia, but in the corporate boardroom. This column is not about publicly traded companies, although family businesses can be public companies. It is about the family business, usually devoid of the external attacks that are common in the rest of the corporate landscape. Family businesses are usually attacked from within their own ranks – by family or trusted advisors. Family businesses are susceptible to implosion. So what is an implosion? It’s an in38
sidious cancer from within and usually from an unsuspecting source. Family members are busy running the business and wearing many hats while they do. They sometimes fail or forget to check on those closest to them. The harmless gambling habit started by the son; the drinking dad, self-medicating the anxiety of the responsibility; the daughter with access to money who develops a heroin addiction. These implosions could be fairly nuclear and often, sadly lethal, not only to the person involved but also to the family and the business. As family businesses are usually measured in decades rather than years, the implosion can come from a ticking time bomb such as a petty family squabble. Sibling rivalries, personality differences, even arguments over who someone will marry all have brought down the family B i zT i m e s M i l w a u k e e
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DAVID B ORST FAMILY BUSINESS
company from inside. After years of working with family businesses, I am convinced one of the largest internal challenges comes from having money, which gives access to selfdestructing resources. Perhaps when you read this you will ask yourself, “Why would anyone want to go into a family business? This column is always so dire.” Fair critique and issue. The truth is that family businesses are more susceptible to internal challenges, while being far more capable of rebuffing external challenges due to the control they exercise. But the internal flares must
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be managed. Giving junior a gold card at a young age is not smart, even if the company can afford it. It is normal for family businesses to expect more and set a higher bar for their own kid and kin. Loyalty is not a birthright and needs to be won by earning it. This is one reason so many successful family businesses won’t allow generation next to hold a job within the family firm until after they have proven themselves externally first, for a non-family business. There is the family who had a child with a cocaine habit (gender and details omitted to protect the family). The child, with access to cash, nearly brought down the multi-generational family business. To defend against this internal predator, the family basically disowned its own child – both emotionally and legally. Cutting off the cash flow was not enough, as desperation leads to reckless decisions. Remember that with a family business, there is a family name and while many things can be withheld and removed, the name can’t be expunged. This is why so many family businesses work so feverishly to protect the family name. They work behind the scenes to keep things out of the press and the mainstream discussion. Who can blame them? There is much more riding on a family member than just that individual – there is the family, the family business and all those who rely on it for sustenance. But this is not a column of despair. Family businesses must pay attention to the internal forces at work. Hold quarterly meetings; go away on family retreats; laugh, work and play together. Menomonee Falls-based Glenroy Inc. has mastered this tactic, and it is a good one used by so many successful family businesses. I also have found that families who pray together, regardless of what that faith might be, are less likely to have internal strife. Take stock of the people around you, especially those closest to you. Encourage communication with them and others more removed. Listen to what others have to say; don’t dismiss or think, “My son would never do that.” The truth is your business is likely to fail because you failed to manage the internal factors, leading to an implosion. n David Borst, Ed.D., is executive director and chief operating officer of the Family Business Legacy Institute, a regional resource hub for family business. He can be reached at davidb@fbli-usa.com.
strategies
Examining how you treat people Do you treat your colleagues with respect?
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ne of the most interesting things about being a consultant is that I have the opportunity to see a wide variety of people and cultures firsthand. I see what motivates people and what doesn’t; I hear about what people really want from their companies and what organizations want in return. I also get a close-up look at what causes poor morale, turnover and dissatisfaction. And when one common theme keeps reappearing nearly everywhere I go, I take notice. Let’s see if you can guess one of the things I hear about most often. How would you answer this question, “In your organization, how do you want to be treated?” Would you say, “With respect”? I suspect that it would be one of your first responses, because it’s a hot topic these days. And although everyone seems to want it, why is there such a lack of it in so many organizations? Organizations reflect the basic beliefs of the people in them. And like so many things, it starts at the top. Inevitably, senior managers’ behavior trickles down and seeps into the core of the culture. However, whether a manager or not, each person can contribute to a healthier work environment. Why not examine your own beliefs and ask yourself, “How do I treat people?” »» Do you believe that every person deserves to be treated with respect, regardless of level or status?
Do you think that your assistant or coworkers deserve the same time and attention when they ask you a question as you give to your customers? Or is it your belief that they are less important and therefore not as deserving of your time or interest? »» Do you believe that business strategy and financial information should be shared with all employees? Do you think that employees need the information to better understand how the business works and how their contribution fits in? Or are you of the opinion that this high-level information is really over the heads of the masses and that you shouldn’t have to waste your time trying to educate them because they wouldn’t get it anyway?
Or would you rather make decisions for them, since you have a broader view and know more than they do? »» Do you give honest feedback to employees? Do you step in quickly and let someone know when he’s getting off track or doing something that is hurting his career, even when that feedback is difficult to give? Or, would you rather just let her figure it out, even if it means she fails, because you feel uncomfortable telling her the bad news? »» Do you look down at certain groups of people and feel you are superior? Do you encourage diversity of people, ideas and opinions? Or, do you only seek out those who are like you and put
“ Do you step in quickly and let someone know when he’s getting off track or doing something that is hurting his career, even when that feedback is difficult to give?” »» Do you ask for input and really listen to it? Do you think it’s important to solicit input from employees at all levels when a decision will have an impact on them?
down or ignore anyone who looks, acts or sounds different than you do? »» Do you speak with the same tone and use the same body language with
Workforce Development
JOA N LLOYD MANAGEMENT all of your co-workers, regardless of what position they hold? If you saw a video of yourself talking to the president of your company and then saw another tape of a typical conversation with a clerk in the front office or the janitor, would your demeanor be the same? Or, would you see a smiling, gracious, considerate person in the first scenario and an arrogant or abrupt person in the second? If you agreed with the first sentence in each of the descriptions, you are probably treating your fellow workers with respect and dignity. If enough people in your organization feel the same way, chances are your organization is a good place to work. Seems like common sense, doesn’t it? Too bad common sense isn’t very common. n
Joan Lloyd is a Milwaukee-based executive coach and organizational and leadership development strategist. Joan Lloyd & Associates specializes in leadership development, organizational change and teambuilding, providing: executive and executive team coaching, 360-degree feedback processes, customized training (presentation skills, internal consulting skills and facilitation skills), and retreat facilitation. Contact Joan Lloyd & Associates at (800) 348-1944, info@joanlloyd.com or www.JoanLloyd.com.
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biz connections CA L E NDAR
NONPROFIT DIRECTORY
The South Suburban Chamber of Commerce will host a Networking Breakfast on Wednesday, Dec. 14, from 7 a.m. to 9 a.m. at the Polish Center, 6941 S. 68th St. in Franklin. The event offers chamber members an opportunity to network and introduce their businesses to each other. Cost is $15. For more information or to register, visit business.southsuburbanchamber.com/events.
SPOTLIGHT
The South Suburban Chamber of Commerce will host its 2016 Annual After Hours Holiday Party on Wednesday, Dec. 14, from 5 p.m. to 7:30 p.m. at The Cornerstone, 155 W. Sunnyview Drive, Oak Creek. The event is free to SSCC members, who are asked to contribute a raffle gift or a small stocking stuffer for each attendee. For more information or to register, visit business.southsuburbanchamber.com/events. The Sheboygan County Chamber will host Business After Hours: Sheboygan County Historical Society Museum Holiday Memories on Thursday, Dec. 15, from 5 p.m. to 7 p.m. at the Sheboygan County Historical Society Museum at 3110 Erie Ave. in Sheboygan. Business professionals will have an opportunity to network in a relaxed setting. The event cost is included in chamber membership. For more information or to register, visit business.sheboygan.org/events. The Metropolitan Milwaukee Association of Commerce’s World Trade Association will host A Night in Indonesia on Wednesday, Jan. 18, from 4:30 p.m. to 7:30 p.m. at Husch Blackwell LLP, 555 E. Wells St., Suite 1900, in Milwaukee. The WTA will take attendees on a “tour” of Indonesia, with authentic food, dance, fashion and music. The Indonesian Trade Promotion Center and the Indonesian Consul General of Chicago also will present. Cost is $30 for members and $45 for non-members. For more information or to register, visit web.mmac.org/events. See the complete calendar of upcoming events & meetings.
www.biztimes.com
BIZ NO T ES R.A. Smith National R.A. Smith National received a 2016 Excellence in Wisconsin Structural Engineering Award for the Highland Manor Community Safe Room, in the projects less than $5 million in construction costs category, from the Structural Engineers Association of Wisconsin. This project challenged R.A. Smith National’s structural engineers with finding a solution for the 450 residents of the Highland Manor Mobile Home Community in Madison, who lacked safe shelter during severe weather events such as tornadoes. Working collaboratively with precast engineers at Spancrete, the team designed a safe room meeting strict standards that resist extreme wind pressures associated with a tornado event. The design team’s creativity and teamwork in overcoming significant design challenges resulted in the largest freestanding safe room in Wisconsin that serves as a model for future shelters and safe rooms.
Lexus, Goose Island Beer and Visit Denmark.
Buelow Vetter Buikema Olson & Vliet Buelow Vetter Buikema Olson & Vliet attorney Nancy Pirkey was recently recognized during the Wisconsin School Attorneys Association membership meeting and named a recipient of the 2016 George Tipler Award. The Tipler Award honors the efforts of former Wisconsin Association of School Boards executive director George Tipler, who initiated the founding of the WSAA and was a long serving advocate for the boys and girls in Wisconsin. Pirkey was nominated by school officials and member attorneys to receive this year’s Tipler Award because of her demonstration of high achievement and dedication to the representation of school districts in the state, and her receipt of this honor comes a few months after concluding her practice of law.
Verlo Mattress
We Energies
Milwaukee-based Verlo Mattress has been honored with four awards for its website from the 2016 W3 Awards, an annual award program that honors online creativity. Verlo Mattress and Candorem, the strategic web design, user experience and online marketing agency that led the web redesign, received the following four W3 Awards: Gold for General Website, Marketing; Gold for Visual Appeal; Silver for Consumer Goods; and Silver for User Experience. Now in its 11th year, the W3 Awards, which are sanctioned and judged by the prestigious Academy of Interactive and Visual Arts, recognize international brands, agencies and Fortune 500 companies in the following categories: websites, online marketing, mobile sites and apps, web video and social media. Verlo’s redesigned website was honored alongside heavy hitters like CBS News,
For the sixth year in a row, We Energies has received the ReliabilityOne Award in the Midwest for the superior reliability of its electric system. This also marks the ninth time in the past 11 years the company has been recognized as the most reliable utility in the region. The award, which is based on performance for 2015, is presented annually by PA Consulting Group to utilities that have achieved outstanding reliability performance and have excelled in delivering the most reliable electric service to their customers. PA Consulting also honored We Energies with an award for Outstanding Customer Reliability Experience. This award is presented to a ReliabilityOne recipient who has recognized that the communication of real-time and accurate information is a key driver to a positive customer reliability experience and
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Startup Milwaukee Email: matt@startupmke.org Website: StartupMKE.org Twitter: @StartupMKE Facebook: facebook.com/StartupMKE Year founded: 2011 Primary focus: Building a more vibrant startup community in southeast Wisconsin. Number of employees at this location: 100 percent part-time, volunteer staff Key donors: Successful entrepreneurs, Wisconsin Economic Development Corp., Wisconsin Housing and Economic Development Authority, Meissner Tierney Fisher & Nichols S.C. Executive leadership: Matthew J. Cordio, co-founder and chief executive officer Advisory board members: »» Matthew J. Cordio, Skills Pipeline, Startup Milwaukee and Milwaukee Startup Week »» Alicia Boknevitz, Crescendo Collective »» Joe Poeschl, The Commons »» Ed Javier, Milwaukee Startup Week »» Tim Grove, Northern Ground »» Nathan Hammons, Marquette University Law & Entrepreneurship Clinic Is your organization actively seeking board members for the upcoming term? Yes, we are always looking for successful
entrepreneurs, corporate executives and community leaders to join our advisory board. What roles are you looking to fill? We are looking for successful entrepreneurs and corporate executives who are willing to invest their time, capital or other resources in growing Milwaukee’s high-growth startup scene. Milwaukee’s future rests in having a more robust startup community, and we are looking for people who are passionate about helping our allvolunteer team advance our mission. Ways the business community can help your nonprofit: We want to help connect local startups with local corporations interested in purchasing products, partnering or investing in them. We are also looking to connect successful entrepreneurs, established corporations and charitable foundations interested in investing in the growth of the local startup community with startups and programs that will help them advance their goals. Key fundraising events: Milwaukee Startup Week
Get the latest nonprofit news delivered to your inbox every Friday. Sign up for BizTimes' Nonprofit Weekly at biztimes.com/subscribe has taken steps to engage with its customers by providing real-time access to information across various channels.
University of Wisconsin-Milwaukee The League of American Bicyclists has named University of Wisconsin-Milwaukee a Gold Bicycle Friendly University. The top ranking comes just three years after the campus was named a bronze-level campus by the league. With the an-
nouncement, UWM joins a cutting-edge group of colleges and universities across the United States that are transforming their campuses and the communities around them. There are now 164 Bicycle Friendly Universities in 44 states and Washington, D.C. Other universities in Wisconsin rated as bicycle-friendly are University of WisconsinMadison, with a gold rating, and several at bronze: Carroll University and UW System campuses in La Crosse, Eau Claire and Stout.
To have your business briefs published in a future issue of BizTimes Milwaukee send announcements to briefs@biztimes.com.
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biz connections PER SO NNE L F I L E
■ Banking & Finance
Submit new hire and promotion announcements to www.biztimes.com/submit/the-bubbler
Mortenson’s Wisconsin operations.
■ Design
Deaton
Cayo
Fink
Schroeder Solutions, New Berlin, has added Kelly Cayo and AJ Fink to its team of workplace consultants. Cayo has a background in sales, management and service operations. He is a certified relocation professional with more than 18 years of experience. Fink has more than 19 years of operations and sales experience.
■ Education Zabler
Rea
Waukesha State Bank has promoted Josh Zabler to bank manager of its West Sunset Drive office in Waukesha and Jennifer Rea to bank manager of its Muskego Walkowiak office. In addition, Waukesha State Bank has hired Denise Walkowiak as bank manager of its New Berlin office. Walkowiak comes to Waukesha State Bank from PyraMax Bank, where she was the assistant vice president–branch executive officer. She has more than 25 years of retail bank management experience, Inlanta Mortgage Inc., Pewaukee, has named Chad Gomoll senior vice president of business development. Gomoll comes to Inlanta Mortgage with more than 20 years of experience in the area of mortgage lending and financial services. As senior vice president, he will drive and oversee new growth for the company.
■ Building & Construction Mortensen, Milwaukee, has hired Dave Merrick as a development executive. In his new role, Merrick will advance the strategic vision for development opportunities for
Franciscan Healthcare Foundation.
Patricia Fabian has joined Curative Care,
The Greater Brookfield Chamber of Commerce recently held its 59th Annual Meeting. Elected to the board of directors were: board chair – Lori Choinski, Gerald Nell Inc.; past Choinski board chair – Bob Suycott, Willis Towers Watson; Derek Berube, First Bank Financial Centre; Lynn Braden, Winter, Kloman, Moter & Repp S.C.; Spence Mather, Securant Bank; Tiffany Mitchell-Detvan, Edward Jones Investments; Gjeret Stein, Sensible Gurus; Anthony Calvino, FedEx Ground; Matt Geik, G&G Juice Co.; and Joe Weitzer, WCTC Center for Business Performance Solutions.
Milwaukee, as director of adult day operations, overseeing the Adult Day and Senior Services programs. Curative Care improves the function and quality of life for persons with disabilities or limiting conditions through care and services in southeastern Wisconsin.
Evans
Pewaukee-based Ellenbecker Investment Group has hired Heather Deaton as a wealth advisor associate and Lauren Evans as an operational specialist.
enhancing the excellence of senior leadership and the entire workforce relating to diversity and inclusion.
Seth M. Siegel has been appointed the Daniel M. Soref Senior Water Policy Fellow at the University of Wisconsin-Milwaukee’s School of Freshwater Sciences. Siegel is the author of The New York Times best seller, “Let There Be Water: Israel’s Solution for a Water-Starved World.” The appointment will enable Siegel to conduct research for a new book on water policy in the United States.
■ Engineering Eric Sorensen has been named vice president of Midwest transportation operations at Eau Clairebased Ayres Associates. Sorensen will oversee transportation and traffic engineering and construction services in Ayres’ Waukesha, Madison, Green Bay and Eau Claire offices.
■ Health Care C. Greer Jordan has joined the Medical College of Wisconsin, Wauwatosa, as chief diversity and inclusion officer. In this role, Jordan will provide strategic leadership, including vision, management and strategic planning, for institution-wide diversity and inclusion initiatives, and will be responsible for developing a broad-reaching approach to w w w.biztimes.com
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■ Hospitality & Entertainment Israel Lugo III has joined MKE Sports & Entertainment, Milwaukee, as a corporate account representative. MKE Sports & Entertainment is the ownership group of the Milwaukee Wave, The Rock Sports Complex, Ballpark Commons and other entities in Wisconsin, Indiana and New York. Mason Street Grill, Milwaukee, has appointed Ramsés Alvaréz executive chef. In his new position, Alvaréz will oversee the entire culinary operation of Mason Street Grill. Alvaréz joins Mason Street Grill from Water Street Brewery, where he served as corporate chef of the company’s four gastro pubs since 2011.
■ Marketing & Public Relations The Racine Theatre Guild has hired Joycelyn Fish as director of marketing and development.
■ Nonprofit Milwaukee-based Junior Achievement of Wisconsin has named Hannah Rankin development manager. At JA, Rankin will be responsible for managing events, ensuring budgets are adhered to and making sure net revenue goals are met. Rankin has more than four years of experience in the development field. She comes to JA from Wheaton Franciscan Healthcare, where she spent two years as a philanthropy associate for the Wheaton
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■ Professional Organizations
■ Real Estate Christian Hunter has joined CBRE Wisconsin as a research analyst. Hunter compiles statistical data for commercial real estate in southeastern Wisconsin, gathering ownership and property information and tracking comparable sales and lease data. He is responsible for CBRE’s market reports and regional thought leadership, with a focus on the retail and industrial markets. Prior to his current role, Hunter was part of CBRE Research in St. Louis, where he built a retail database, covered retail and tech industry trends and helped launch the rollout of Tableau data visualization software for the St. Louis market.
■ Technology Gerry Schaefer has joined PC LAN Services, Milwaukee, as vice president of business development. He has more than 30 years of experience in areas of consultative sales, marketing, customer service and management, along with professionalism and a passion for developing lasting business relationships and providing solutions. Newport Network Solutions Inc., Menomonee Falls, has hired William Frahm II as security division manager. Frahm has more than 10 years of access control, video surveillance and intrusion system management experience.
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biz connections
Commercial Real Estate and Development Conference BizTimes Media, the Marquette University Center for Real Estate and the Commercial Association of Realtors Wisconsin presented the 2016 Commercial Real Estate and Development Conference on Thursday, Nov. 17 at Potawatomi Hotel & Casino. Real estate experts debunked common myths about the Milwaukee region related to office, retail, industrial, hospitality and multi-family real estate.
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Steve Phillips and Djuro Rodic of Warehouse Lighting.
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Shane Faulkner-Nelsen, Marquette University student, and Joe Popalisky of Acoustech Supply Inc.
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Nate Franke of Zilber Property Group, Paul Galbraith of Irgens and Lynn Scherbert of Ayres Associates Inc.
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Tara Kessenich of Johnson Bank and Jenny Olson of Paul Davis Restoration & Remodeling.
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Connie Roethel of Gibb Building Maintenance, Benjamin Schmitt of CBRE Inc. and Nathan Winkel of NAI MLG Commercial.
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Roy Wagner of von Briesen & Roper s.c. and Joaquin Altoro of Town Bank.
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Troy Mleziva of Kwik Trip and Jay Henrichs of Big Bend Development.
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Joseph Jursenas of Briohn Building Corp., Patrick Dedering of Phoenix Investors LLC and Jeff Hoffman of Cushman & Wakefield | Boerke.
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Dr. Mark Eppli of Marquette University introduced each expert. Doug Nysse of Arrival Partners, William Bonifas of CBRE, James T. Barry III of The Barry Co., Robert Monnat of Mandel Group Inc. and Bruce Westling of NAI MLG Commercial presented. Photos by Paul Gaertner, White Dog Photography
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biz connections
n GLANCE AT YESTERYEAR VOLUME 22, NUMBER 19 DECEMBER 12 - 18, 2016 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
Garbage incinerator This photo, taken circa 1923, shows the Milwaukee garbage incinerator at the foot of Erie Street. The incinerator was built around 1900. The site is now occupied by Erie Street Plaza, a Riverwalk park next to the Sail Loft restaurant and along the Milwaukee River in the Historic Third Ward. —This photo is from the Milwaukee Public Museum’s Photo Archives collection. Additional images can be viewed online at www.mpm.edu.
Dan Meyer dan.meyer@biztimes.com DIRECTOR OF OPERATIONS
Mary Ernst mary.ernst@biztimes.com DIRECTOR OF STRATEGIC INITIATIVES
Jon Anne Willow jonanne.willow@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 REPORTER
Ben Stanley ben.stanley@biztimes.com
SALES & MARKETING DIRECTOR OF SALES
Linda Crawford linda.crawford@biztimes.com BUSINESS DEVELOPMENT EXECUTIVE
Maribeth Lynch mb.lynch@biztimes.com ACCOUNT EXECUTIVE
Molly Lawrence molly.lawrence@biztimes.com ACCOUNT EXECUTIVE
Maggie Pinnt maggie.pinnt@biztimes.com ACCOUNT EXECUTIVE
Christie Ubl christie.ubl@biztimes.com
PRODUCTION & DESIGN GRAPHIC DESIGNER
Alex Schneider alex.schneider@biztimes.com ART DIRECTOR
Shelly Tabor shelly.tabor@biztimes.com
Independent & Locally Owned — Founded 1995 —
COMME NTA R Y
Future of Milwaukee’s cultural assets still needs to be addressed
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t is exciting to see the progress on construction of the new arena in downtown Milwaukee. Structural steel is now rising out of the ground for the project, which will be complete in 2018. The arena, and the other development planned around it, will bring new life to what had been a dead part of downtown Milwaukee. It will ensure the future of the Bucks in Milwaukee, give the Marquette men’s basketball team a top flight facility to show off to recruits and hopefully attract more concerts and other events than the BMO Harris Bradley Center has been able to. With the arena project moving forward, it’s time to turn our attention to Milwaukee’s other key cultural assets that are in need of investment in order to preserve them for future generations and maintain the region’s quality of life. This is going to be a huge challenge. The cost to maintain our cultural institutions will be significant. 46
The future of the Mitchell Park Conservatory Domes is in serious doubt. The Domes were closed earlier this year because of falling chunks of concrete. The county made repairs to the Domes and they have been re-opened, but this is seen as just a temporary fix. A task force was assigned to recommend a long-term plan for The Domes, built in 1967. The recommendations range from a new $15 million conservatory to a $75 million full restoration of the iconic Domes. A mix of public and private funds would be necessary. The Domes are nice to have in our community, but their attendance pales in comparison to major sports or other more popular cultural institutions in Milwaukee. Is this really where we want to invest public and private dollars? Bigger picture, last year a task force convened by the Metropolitan Milwaukee Association of Commerce concluded that additional public funding is needed B i zT i m e s M i l w a u k e e
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to preserve and protect the region’s signature cultural and entertainment assets, including the Milwaukee Art Museum, the Milwaukee Public Museum, the Marcus Center for the Performing Arts and the Milwaukee County Zoo. These are the iconic quality of life cultural institutions of this community, but they were built decades ago and are showing their age. The MMAC is pushing the need to maintain the region’s cultural and entertainment assets as a key strategy to compete with other regions, nationally and globally, for top talent. But where is the funding going to come from? A Milwaukee County sales tax increase might be the best bet. Although these are regional attractions enjoyed by many from outlying suburban counties, you can be sure any attempt for a regional cultural amenity tax would be met by huge pushback from the WOW counties. It’s probably a non-starter.
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ANDREW WEILAND Editor BizTimes Milwaukee
Milwaukee would do well to follow the lead of Oklahoma City, which has made numerous community improvements with sales taxes collected through its Metropolitan Area Projects Plan. OKC has used the program for numerous projects, including: renovation of a performing arts center, a minor league ballpark, an arena, renovations to its fairgrounds, renovations to its convention center, a new library and numerous school improvements. Future projects planned in Oklahoma City include a streetcar system, a downtown park and a new convention center. That’s not unlike Milwaukee, which needs to expand its convention center, is planning a major lakefront park project and has started building a downtown streetcar system. n
ERICH SCHROEDER PHOTOGRAPHY
the last word
Innovation drives growth, insight drives success Aaron Jagdfeld is president and chief executive officer of Generac Power Systems Inc. He says innovation comes from throughout a company. “To be successful in any marketplace requires three things: innovation in products and services; the implementation of key insights; and a workforce that can sustain momentum. “Innovation drives growth. From our humble beginnings in a barn in Wales, Wisconsin, Generac has been a pioneer in the generator industry for more than 50 years. Our industry-leading products now address nearly every situation requiring backup electrical power generation, and our commitment to innovation will ensure that the
company continues to grow well into the future. “A keen awareness of the external factors that affect any business is critical for future success. The pace at which change now occurs in markets is dramatic – entire industries can be impacted in very short periods of time. Developing unique insights into customer needs plays an important role in staying ahead of the market. These insights, coupled with a commitment to innovation, position businesses to quickly adjust to forces outside of their control. “It’s the innovation that comes from employees that fuels a company’s growth. From the salesperson who is able to listen and hear the needs of the customer, to the engineer who designs a unique way to solve that customer’s need, to the marketer who creatively tells the world
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Aaron Jagdfeld President and CEO Generac Power Systems Inc. S45 W29290 Highway 59, Waukesha Industry: Power generation equipment Employees: 1,500 www.generac.com
about that solution, to the manufacturing employee who skillfully turns the solution into a physical product. Every employee contributes to the overall ability to innovate, and it’s our job to recognize and nurture their strengths.” n
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What is your commitment to improvement?
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oday’s business leaders have been among the most challenged in all of history. They have experienced significant disruptions and uncertainty as a result of the economic recession and the challenges associated with rebuilding and recovery. At the same time, they’re operating in a time of political divisiveness, civil unrest, an aging workforce, a shrinking pool of skilled workers, foreign market pressures and trade inequity, cyber threats, and practices that have called fundamental business ethics into question. Despite the environment, many of the most successful organizations have discovered how to stay their course. They are characterized not by their product or service but by their commitment to remain focused on optimizing value through enhanced performance. Leaders of these organizations often seek to understand trends and opportunities, but then utilize the information to adjust deployment strategies rather than shift strategic focus or tamper with the core of their business success. An organization’s resiliency is characterized by its power or ability to recover from difficulties. Fundamental to that resiliency is a clear understanding of mission, vision and values and leadership committed to the organization’s “true north” vision for the future.
In all cases, that future vision is one that requires a shared sense of urgency among all members of the organization to continuously improve.
Sustainable high performance relies on incremental improvement Sustainable practices are characterized by a clear understanding of the goal and consistent, timely access to the tools necessary to execute on initiatives. When it comes to establishing and enhancing a culture dedicated to continuous improvement, there are few options that have demonstrated the value, impact, reliability, and sustainability over time as those in the Lean Six Sigma tool kit.
both—as well as save time, cut costs, improve customer satisfaction, enhance work culture and empower an engaged workforce.
Lean Six Sigma is a business strategy that complements an organization’s existing quality initiatives and supports a culture of continuous improvement. It is specifically designed to empower teams to assess situations, identify problems, disruptions and opportunities in work processes and then develop the most cost-effective strategy to reduce variation and eliminate defects and other forms of waste. While Six Sigma was originally developed to improve quality, and Lean to reduce waste, the combination of these approaches provides a powerful set of tools to do
The Center for Business Performance Solutions supports manufacturing, healthcare, education, government, business services, finance and other organizations in their continuous improvement transformation utilizing Lean Six Sigma methodology. CBPS’ distinctive approach has proven to be an accelerator for establishing and enhancing a culture of continuous improvement. In addition to being cost effective, CBPS’ approach has consistently provided an immediate return-on-investment, and additive fiscal impact over time.
CBPS will host a free informational breakfast on Friday, January 13, 2017 from 8:00 a.m. to 10:30 a.m. This session is open to leaders who wish to learn more about fostering a culture of continuous improvement. Register at wctc.edu/cbps-LSS, or by email at cbps.info@wctc.edu and indicate your interest in attending the LSS Executive Overview
For more information on supply chain management, logistics and related courses offered by Waukesha County Technical College, go to www.wctc.edu/cbps