BizTimes MILWAUKEE
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COMPETITION ALSO IN THIS ISSUE:
MKE FELLOWS PROGRAM EXPANDS WORKFORCE SOLUTIONS COLLABORATIVE PUSHING TO LAUNCH USBLN CHAPTER VOLLEYBALL CLUB FINALLY FINDS HOME IN FORMER KOHL’S WAREHOUSE Nick Reistad and Scott Kelley of Raised Grain Brewing Co.
MORE FROTH FANATICS TRY TO MAKE IT IN BREW CITY
inside
January 11 - 24, 2016 HIGHLIGHT S Now 4 Mass layoffs in Wisconsin up 60 percent in 2015.
Coffee Break
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A conversation with Buckley Brinkman of the Wisconsin Center for Manufacturing and Productivity.
Book Review
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“The Giving Way to Happiness: Stories and Science Behind the Life-Changing Power of Giving”
Made in Milwaukee
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Racine Metal-Fab increasing automation and employees.
Nonprofit News
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Star of ‘The Profit’ to donate up to $300,000 to Marquette.
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S TR ATE GIE S Family Business David Borst 25 Human Resources 26 Daniel Schroeder
Generation Y
Aleta Norris 27
COV E R S T ORY
Craft competition
S P E C I A L R E P O R T:
More froth fanatics try to make it in Brew City
WOR K FORCE DE V E LOPME NT 21
ON THE COVER: Nick Reistad and Scott Kelley of Raised Grain Brewing Co. — photos by Troy Freund Photography
Coverage includes reports on the expansion of the MKE Fellows Program and a workforce solutions collaborative pushing to launch a USBLN chapter.
BIZ CONNECTIONS Calendar 28 Nonprofit Spotlight 28 Commentary 32 BizTimes Around Town 33 The Last Word 34
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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
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BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 21, Number 21, January 11 - 24, 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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isconsin entered the end of 2015 with an unemployment rate below the national average and down a full percentage point from the same time last year. But the year wasn’t all good news on the employment front, as the number of plant closings and mass layoffs, and the number of workers affected by them, increased over 2014. When Manitowoc Cranes informed state and local officials in mid-December of plans to close its Port Washington facility and move operations to Manitowoc, it was just the latest in a growing list of plant closures. Through Dec. 15, there were a total of 100 mass layoff notices provided to the state, according to Department of Workforce Development data. In 2014, a total of 83 notices were provided. The number of workers affected by those decisions was up more than 60 percent, from 6,186 in 2014 to 10,081 in 2015. The figures come from the department’s listings of Worker Adjustment and Retraining Notification, or WARN, notices. These notices are required under Wisconsin law for companies employing 50 or more people in the state when they plan to shut down a facility or lay off a large number of workers. Companies are also encouraged by the state to provide notice even in situations that may not technically meet the requirements for a notice. Not every company goes through with the plans after providing notice, and in some cases
the amount of layoffs is reduced. While the number of workers affected in 2015 was the highest total in the past five years, it was still well behind the figures from 2008 and 2009, when roughly 18,000 were affected on average each year by new closings and layoffs. Asked about the increase in workers affected in 2015, Department of Workforce Development spokesman Ethan Schuh said those looking for jobs “are benefiting from a robust job market.” “In Wisconsin we have seen that there are far more examples of gaining jobs than losing jobs year over year, as indicated by the monthly job numbers,” Schuh said. He added that November’s 4.2 percent unemployment rate was a 14-year low and the state added 33,400 jobs from November 2014 to November 2015. He also noted the number of new business fillings was up 3.6 percent. The 2015 layoff figures were driven up by two notices in particular, Schuh noted. In March, Wells Fargo announced plans to close its Milwaukee servicing office, citing an improving economy and reduced delinquencies and demand from customers who need help staying in their homes. The company provided notice in May for 839 affected workers. In June, Assurant Health announced plans to exit the health insurance market, leading to the layoff of 1,200 people in Mil-
Wisconsin workers impacted by mass layoffs
waukee over 18 months. But there were several other high-profile closures announced in 2015, including the planned closure of the Oscar Meyer plant in Madison, eliminating 1,000 jobs. GE announced plans to stop manufacturing engines in Waukesha, moving operations to Canada. The company initially cited Congress’ failure to reauthorize the Export-Import Bank, but later indicated it wouldn’t reconsider the move when the bank was reauthorized. Joy Global, dealing with what a spokes-
woman called “the toughest market conditions our business and our customers have ever seen” announced a number of layoffs and closures, including the temporary closure of its Original Equipment department and the closure of its Orchard Street plant in Milwaukee. Schuh said that it isn’t uncommon for other employers to reach out to the department “as workers affected by dislocations often have highly marketable skills for openings that employers have available today.”
——Arthur Thomas
SOCI AL M E D I A S T R AT E GI ES
Change is constant The ancient Greek philosopher Heraclitus of Ephesus may not have had today’s social media landscape in mind, but his words certainly apply: “The only constant is change.” The year 2016 promises to be another year of constant change. Previously unknown social platforms, functionalities and technologies will continue to emerge, and these are the broad trends we believe social brands should anticipate.
It’s not what you have, it’s who you are Having a good product is a good start, but it’s only a start. Brands with resonating stories and values to share will win not only consumers’ eyes and ears, but also their hearts 4
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and minds. Conveyance of a strong and embraceable culture will triumph over tired product postings pushing sales. Think about how you will identify with your fans and would-be fans on a more personal level, both online and in the real world.
Give them what they want Periscope, Snapchat and Instagram rose to great popularity last year, and brands began to take note. The power of on-the-go, in-the-moment apps and the authentic look at brands they can provide are game-changing. Consider how you can draw your audience closer to your brand with instant updates, and embrace the fact that they don’t allow for the staging, planning and massaging of years past.
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A picture is worth a thousand words The visual apps above, along with the popularity of video content and Pinterest’s continuing content diversification support the old adage: images convey what words cannot (and often to greater effect). Up your investment in graphics and videos in 2016, and don’t neglect innovative forms, such as cinemagraphs, carousel ads, and stop-motion videos. The new year is sure to bring change, and as they say, change is good. Here’s wishing you a very social new year!
——Jeanette Pham (@j_sosh) is chief operating officer at Sosh ¯ in Milwaukee.
SOURCE: WISCONSIN DEPARTMENT OF WORKFORCE DEVELOPMENT
Mass layoffs in Wisconsin up 60 percent in 2015
leading edge COFF E E B R E A K
POLITIC AL BEAT
Wisconsin vs. Minnesota BY MATT POMMER, special to BizTimes
What was the smartest thing your company did in the past year? “We continued to push manufacturers in Wisconsin to cooperate and share their resources for the common good. There are many issues that require bilateral approaches that no one organization can provide. Our state understands how complicated the modern industrial world has become and is putting together cutting-edge approaches to keep Wisconsin the top manufacturing state in the country.”
What’s new at your company?
“This has been a momentous year for our organization. We made significant changes to strengthen the Manufacturing Extension Partnership resources in Wisconsin. Our two centers (the Wisconsin Manufacturing Extension Partnership and the Manufacturing Outreach Center at the University of Wisconsin-Stout) won a $16 million grant to develop a statewide model that combines their best resources, all the while building on our past successes.”
What will be your company’s main challenges in the next year?
“Our biggest challenge will be engaging our new combined resources and maintaining the high rate of return for our investors. Our teams focus on the results they deliver for our clients and we want to make sure those results continue – especially with the new opportunities that face us this year.”
What’s the hottest trend in your industry?
“The transformative technology that is changing the entire makeup of the industry. First, there’s the ongoing advances in additive manufacturing that make new designs, approaches, and techniques possible, transforming the way manufacturers satisfy their customers’ demands. In many cases, this technology improves our
ability to compete in world markets. “Second, connected devices increase our ability to compete even more. These connections can improve device performance, extend and deepen customer relationships, and broaden manufacturers’ participation in markets.”
Do you have a business mantra? “The team can do it better than me.”
From a business standpoint, who do you look up to?
“I look up to the hundreds of people who work behind the scenes and give their own time to make the manufacturing community stronger and more effective. One of those people just retired. Mary Baer (former vice president of community engagement at the Waukesha County Business Alliance) made a huge impact for Waukesha County with her tireless efforts to connect community leaders, local schools and students, and manufacturers in order to open doors to new opportunities for everyone.”
What was the best advice you ever received? “No cash, no mission.”
What’s the funniest thing that ever happened to you in your career?
“I was a newly minted MBA sent to a nearly century-old paper mill to turn it around. Breakdowns were fairly frequent and often occurred in the middle of the night. During one of these episodes, I was sitting by the paper machine at 2 a.m., totally exhausted, with absolutely no clue of how to fix the problem. Suddenly, two of my millwrights appeared and saw me holding my head in my hands in utter despair. ‘How’s that MBA working for you now?’ they asked. The value of book learning in the real world became immediately clear. Twenty-five years later, the episode still makes me chuckle.”
Buckley Brinkman Executive director and chief executive officer Wisconsin Center for Manufacturing and Productivity (which oversees the Wisconsin Manufacturing Extension Partnership and its offices in Milwaukee, Madison and the Fox Valley) 145 Crossroads Drive, Madison www.wmep.org Industry: Public-private partnership serving small and medium-size manufacturers Employees: 35 Family: Wife, Karen w w w.biztimes.com
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Gov. Scott Walker is annoyed with the media. He says reporters and editors are paying too much attention to news of companies closing or laying off workers. Walker wants more people to be talking about the state’s 4.2 percent unemployment rate, which is below the national rate of 5.0 percent. Meanwhile, the non-partisan Wisconsin Taxpayers Alliance reported that Wisconsin currently trails Minnesota by 8.5 percent in per capita income. By comparison, Wisconsin had a 5 percent lead over Minnesota in the period ending back in 1966, the WTA report said. Wisconsin still has 5.5 percent more tax filers than Minnesota, but the number of those earning $200,000 or more is 43.6 percent higher in Minnesota. The WTA said one factor is that there are more jobs in the Minneapolis-St. Paul metropolitan area than in the fourcounty Milwaukee metropolitan area. Minnesota’s corporate headquarters tend to be in the Twin Cities metro area, while just half of Wisconsin’s corporate headquarters are in the Milwaukee metro area. Having a larger number of corporate headquarters in an area helps provide a “vibrant and fluid labor market” with a pool of seasoned individuals who can easily move to other companies, the WTA added. Attracting and retaining a quality corporate workforce has long been a topic among Milwaukee business and government leaders. A poll sponsored by the Public Policy Forum of nearly 500 millennials working in the Milwaukee area provided a new focus on the question. The top issue for them is the crime rate, followed by the economy. Taxes were not a key issue in the poll of Milwaukee-area millennials. Lowering income taxes has long been a part of the Wisconsin Republican approach for economic development. Someone is sure to note that Minnesota has higher income tax rates than Wisconsin. Matt Pommer is the “dean” of Capitol correspondents in Madison. His column is published with permission from the Wisconsin Newspaper Association, but does not reflect the views or opinions of the WNA or its members newspapers.
BY TH E NU MBERS
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Manitowoc Cranes will lay off 80 employees when it closes its Port Washington plant later this year. Some might be offered jobs in Manitowoc.
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leading edge ON TH E C ALEN D AR
MA DE I N M I LWA U K E E
Racine Metal-Fab increasing automation and employees
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While it’s increasing the level of automation at its 75,000-square-foot Sturtevant facility, Racine Metal-Fab doesn’t plan to decrease the number of employees. In fact, it will be adding about 20 new employees over the next two years and training them on the automation skills needed to run and maintain the new machinery. “We’ve been able to grow and we’re implementing a lot of new equipment,” said president Scott Lucas. “People have got to be able to program robots and set these machines up and run them.” The new equipment will include an automated laser machine, brake presses, punch presses, welding and assembly machines, Lucas said. The company invested about $500,000 in the equipment, which will be installed this month. “It’s all about taking on new business and we have a lot of pressure right now with new business coming in to do things faster,” he said. “I think we’re just getting known for our capabilities.” Racine Metal-Fab planned for its growth. It built its $7 million plant, which it opened in February 2012, on 14 acres to allow room for another 225,000 square feet of expansion. The company manufactures light-gauge metal fabrication components or sub-assemblies that are then assembled into final products by its customers. Racine Metal-Fab specializes in aesthetic parts, so its facility is kept spotless and many of its parts have reflective coatings or plastic sheets that can be peeled off by the customer upon assembly to keep the surface pristine. Sometimes, employees wear white gloves while handling a part to ensure it is kept clean. “They can’t have scratches. They can’t have fingerprints,” Lucas said. “When people have those kind of parts, they need more attention to detail and that’s what we have.” Among its parts are reflectors and other parts for LED lights, many of which go to the Cree Inc. (formerly Ruud Lighting) plant just down the road in Sturtevant. It also makes medical equipment and appliance parts, such as Sub-Zero ice maker components. The company starts with rolls of sheet metal, usually made of aluminum, which it punches, forms, welds and laser cuts into parts. Lucas has focused on grouping machines into cells and making the manufacturing process as team-based and efficient as possible, which he said has helped customers get their products to market faster and keep them on the market longer. Employees are cross-trained on each machine in their cell so they can move to where they’re needed. “When you’re all split up, you’re doing your own thing, you don’t have common goals,” Lucas said. “Manufacturing would like to move slow and steady, but that’s not what (customers) need.” One efficiency technique the company has implemented is clearly identifying machines that are not part of one cell and can be rolled to other areas by painting them light pink. They stand out among the other machines, which are
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City Birthday Party
ABOVE: Mark Derderian stacks reflector parts next to a laser machine that is cutting them out. BELOW: Antonio Boyd (left) and Randy Edwards bend the lip onto a painted steel light component.
The Milwaukee Press Club will host the City of Milwaukee’s 170th Birthday Party on Thursday, Jan. 28, from 5:30 to 8 p.m. at The Grain Exchange, 225 E. Michigan St. in Milwaukee. This year’s event is themed “Savoring our City,” and will feature the winners of an online competition among Milwaukee’s best culinary offerings. Cost is $35. For more information or to register, visit www.milwaukeepressclub.org/events.
For a complete listing of all area events, visit the event section of our website.
www.biztimes.com/events
BOOK REVIEW
“The Giving Way to Happiness”
Racine Metal-Fab Ltd. 1520 Grandview Parkway, Sturtevant Industry: Metal fabrication Employees: 70 www.rm-f.com mostly gray and blue. Racine Metal-Fab starts a new part on its small-run manually operated machines, eventually moving it to more automated machines for medium runs, and finally to roll formers when the part is in high volume to keep the manufacturing process inexpensive and keep up with demand, Lucas said. The company’s employees regularly participate in Kaizen continuous improvement sessions to implement rapid change in a production line to improve efficiency. Any employee can offer an idea to improve processes at all-staff meetings once a month, Lucas said.
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In “The Giving Way to Happiness: The Life-Changing Power of Giving,” author Jenny Santi shares how the act of giving actually improves our own lives, as well as helps people in need. Whether we give in the form of money, expertise, time or love, giving can help people from all walks of life find purpose and joy. Drawing on the wisdom of past and present, as well as scientific research, Santi makes a case that the key to happiness lies in helping those around us. The book uses real world examples from actress Goldie Hawn, Nobel Peace Prize winner Muhammad Yunus, Teach for America founder Wendy Kopp, philanthropist Richard Rockefeller, environmentalist Philippe Cousteau and many others. Santi turns conventional wisdom about what it takes to be happy upside down and reveals the surprising reasons that have led so many people to live lives full of meaning, purpose and happiness. “The Giving Way to Happiness” is available on www.800ceoread.com for $20.76.
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——Corrinne Hess
leading edge NON P RO F IT N E W S
THE GOOD LIFE
Star of ‘The Profit’ to donate up to $300,000 to Marquette Marcus Lemonis, the chairman and chief executive officer of Bowling Green, Ky.-based Camping World and the star of the CNBC show “The Profit,” says he will donate up to $300,000 to Marquette University as part of a $1 million university giving challenge that began on Jan. 5 and will Lemonis run through March 12. Lemonis is a 1995 alumnus of Marquette’s Helen Way Klingler College of Arts and Sciences. Lemonis will donate $100,000 for every $250,000 the university raises, with a personal cap of $300,000. There is no minimum donation for individuals who contribute as part of the $1 million challenge. The maximum donation for individuals is $5,000. Camping World claims to be the nation’s largest RV and outdoor retailer. It has nearly 3,600 employees and serves more than 4 million RV enthusiasts at more than 100 retail locations, with revenues exceeding $1.7 billion annually, according to the company’s website. On “The Profit,” Lemonis assists struggling businesses around the country from a variety of industries.
——Andrew Weiland
2016 GIVING GUIDE
A born bowhunter By the time Steve Marcinkowski hit his toddler years, he had built his first bow out of a curved stick and a piece of elastic from his mother’s sewing kit. Marcinkowski, an agent at Rural Mutual Insurance and a resident of Sturtevant, spent much of his childhood shadowing his father, Mark Marcinkowski, who is an avid bowhunter and passed on a passion for the sport to him. Steve got his first compound bow for Christmas while in elementary school and by age 12 began hunting. He grew up venturing out on bowhunting shoots on Sunday mornings right beside his father. Nearly every year since age 12, Steve has hunted. During bow season, he typically hunts every other Marcinkowski has been weekend, often with his dad and often in search of bowhunting since he was12. deer and wild turkey. The pair belong to the Wisconsin He usually hunts deer and Bowhunters Association, which allows them to parwild turkey. ticipate in open shoots in the area. They also hunt on private land north of Wisconsin Dells. and I guess watch the world how it normally Steve has hunted with guns but prefers bowhunting, as it behaves,” Steve said. allows him to watch wildlife in its natural state, he said. While gunshots can easily scare away animals, bowhunting gives He aims to continue passing on the family passion for him a chance to see animals in a more peaceful setting. bowhunting as he begins to coach his 11-year-old son, Connor, with a bow and eventually train his son Gavin, who is His time spent bowhunting also opens up an outlet of still just a toddler. stress relief. “It’s my time to decompress and get away and just relax ——Erica Breunlin
Smart Enough to Know... It doesn’t have to be lonely at the top
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leading edge O N T HE M ON E Y
BR EA K ING GR OUN D
Cash flow repays loans, not income
BY JEANNE ZESKE, for BizTimes
The title seems obvious, yet many businesses and even financial institutions focus more on income than on cash flow when assessing the strength of a business. Income is one component of financial strength, but understanding and assessing operating cash flow is the key to determining a company’s ability to meet payment obligations. There are several key considerations to assessing operating cash flow: »» Quantify the amount of internally generated cash (defined as EBITDA– Earnings Before Interest, Taxes, Depreciation and Amortization–adjusted for one-off items). »» Subtract primary payments (i.e., interest, taxes and scheduled debt payments) to get cash from operations. »» Analyze the effect of changes to Adjusted Working Capital for information regarding cash management efficiency and reliance on debt. • For example, is the business turning accounts receivable and inventory in line with industry standards? If not, why not? The slower the turns, the less cash flow the company generates. • Are payables paid in a timely manner? If not, why not? »» Evaluate spending for capital expenditures versus requirements. »» Evaluate truly discretionary spending, such as shareholder dividends, to determine if these were appropriately funded (i.e., through internally generated cash or using borrowed money?).
Taking the Lead! February 24th - 25th, 2016 Hyatt Regency Hotel, Milwaukee
TRACKS INCLUDE:
KEYNOTE SPEAKER
Giacomo Fallucca President & CEO Palermo’s Pizza
——Corrinne Hess Working capital changes, capital expenditures and owner’s withdrawals do not impact the income statement, but all can significantly impact the business’ cash flow and its ability to repay debt. Once the business’ cash flow is understood, a business owner can 140120 better plan for future needs and manage his or her business. This understanding also MAC Ad allows the lender to structure credit facilities that 3best serve the needs of the business.
4.6875” x 5.5” banking at Brown Deer-based ——Jeanne Zeske is vice president of commercial Bank Mutual.
Network:
NET-work, v., to cultivate productive relationships, as in
The Milwaukee Athletic Club Imagine talking to one of the titans of Wisconsin industry on the next treadmill. Or playing basketball with professionals who can help you advance your career. The MAC Mentor Program fosters relationships between those who have made it, and those who will. Round Table Groups put you at the same table with decision makers, the kind of people you want to know.
Growing your Business C-Suite Essentials Wisconsin Manufacturing Environment Cost & Efficiency Transformation & Change Pre-conference workshops on February 24th: Lean Product Development HACCP Certification Quick Response Manufacturing
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Construction is underway on a 120-unit upscale apartment development in Milwaukee’s Walker’s Point neighborhood. The project is being developed by Tim Gokhman, who is planning three five-story buildings at 1029 S. First St., north of West Washington Street, between South First and South Second streets. The buildings will be completed in summer 2016.
Workforce & Culture
Mr. Fallucca will share his perspectives on the Milwaukee and Wisconsin manufacturing environments, the FaB initiative, and how Palermo’s commitment to innovation and employee engagement has contributed to the ongoing success of his company.
ManufacturingMatters.org
WALKER’S POINT APARTMENTS
macwi.org 877.856.8588 ∙ WMEP.org
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ON LIN E POLL Who do you plan to vote for in the presidential primary? Bernie Sanders
22.6%
Hillary Clinton
18.3%
Re: Positive trends
Marco Rubio
15.3%
“Yes, there may be a lot of violence and change, but it is counterbalanced by many life-affirming, hopeful events as well.”
Donald Trump
14.6%
Ted Cruz
9.6%
Re: Fighting inequality
Rand Paul
4.3%
“We should never stop trying to level the playing field by ensuring everyone has access to education and opportunity to reach their fullest potential.”
Jeb Bush
3%
Ben Carson
3%
John Kasich
3%
Carly Fiorina
2%
— Richard Pieper, Sr., PPC Partners Inc.
— Tim Sheehy, MMAC
The Waukesha County Business Alliance recently hosted “Key Industries for Wisconsin in 2016 and Beyond” at the Country Springs Hotel in Pewaukee. Brad Zepecki of SafeNet Consulting and Jim Zaiser of Hydro-Thermal spoke on the panel.
Re: Single moms, poverty and contraceptives “Reducing births to single moms is not only a social issue; it is also an economic development issue.” — John Torinus, Serigraph Inc.
Chris Christie
1.7%
Somebody else
2.7%
What does success look like to you?
WELLNESS SUMMIT HEALTH CARE SAVINGS
BOTTOM LINE GAINS
Save the Date! Friday, March 18th, 2016 The annual Wellness Summit, presented by BizTimes Media, provides company leaders, including HR personnel, information and advice on keeping a healthy workforce.
Tom and Jerry Kelly of Kelmann Restoration – customers since 1973 Member FDIC
For Jerry Kelly, success is passing along a legacy built on sound principles to his son, Tom. Over 40 years ago, Jerry started a business out of his garage to provide disaster recovery services to local families and businesses in times of need. Park Bank stood behind his vision, has supported him every step of the way and helped make it a reality. Today, we see that Jerry and Tom share the same passion and values, and we are excited to be their partner for another generation. Learn more about their story at ParkBankOnline.com/success.
To learn more, visit
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innovations App gauges algae levels in lakes
Tool can predict future algae growth
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hen conditions are just right for toxic algae to bloom in a lake, the body of water not only begins to smell, but also can asphyxiate fish, induce rashes and vomiting in people, and in extreme cases kill pets and children. Those consequences – cited by Derek Riley, Ph.D., assistant professor of computer science at the University of Wisconsin-Parkside – could be more easily prevented with a mobile application recently developed by UW-Parkside ERICA BREUNLIN P: (414) 336-7121 E: erica.breunlin@biztimes.com Twitter: @EricaBreunlin
students in partnership with an international mix of other students. The Algae Estimator app, a free app available on Android devices, gives lakeside homeowners and lake managers a tool to measure algae and toxic algae levels in a particular body of water. The app can also predict what a lake’s algae levels will look like in the future. Regular algae, also known as green algae, and toxic algae, known as blue-green algae, thrive under different conditions – primarily different nutrient levels in lakes, according to Riley. In general, algae grows in shallow waters and needs plenty of light and warm temperatures, Riley said. Algae Estimator is designed to educate people about indicators that point to water quality, according to Riley, who is also codirector of UW-Parkside’s App Factory. Those indicators include temperature of water, nutrient concentration, water depth and water clarity. In order to understand water quality and measure algae levels in lakes, people have traditionally had to collect a sample of water, send it off to a laboratory and wait to hear back about results – a process that can take several days. “But (with the Algae Estimator) even just a homeowner can take some basic 10
measurements and get a sense of whether the algae is at a concerning level,” Riley said. To evaluate a lake’s nutrient concentration – primarily its concentration of phosphate – an individual can use fish tank test strips, according to Riley. To assess the clarity of a lake, an individual can test it with a tool known as a Secchi disk, which gauges how deep one can see into the water, he said. Once an app user plugs each measurement into the Algae Estimator app, the tool reveals the estimated amount of algae currently in the lake, as well as a prediction of future growth. If algae levels appear to sit at an alarming level, the app user then knows to send a water sample in to a lab for further evaluation. Algae Estimator’s ability to project future levels of algae is unique to the app, according to Riley. “We’re kind of applying weather forecasting to algae growth, which has never been done before to my knowledge,” he said. Development of the app emerged out of an exchange program between UWParkside and Ostfalia University of Applied Sciences in Germany. Nearly two years ago, Riley traveled to the German school with UW-Parkside students to teach a course on biochemical systems modeling. The class pushed students to create and test a model for algae growth with help from Ostfalia faculty knowledgeable about algae and toxic algae patterns. After collecting water samples in lakes in Germany and studying the algae in those lakes, students analyzed their findings and data in the classroom and devised a mathematical model to convey how fast algae grows. That mathematical model was then applied to lakes in southeastern Wisconsin as German students in classes at UWParkside tested the model and developed an app for it. The initial app development project involved a cross-sector of students from comB i zT i m e s M i l w a u k e e
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University of WisconsinParkside App Factory LEFT: The app can be used to create a graph. RIGHT: Students perform experiments to test the model in the Algae App.
Kenosha Innovation: Algae Estimator App www.appfactory.uwp.edu
puter sciences, geosciences and biology. In addition to German students and American students, app development incorporated input from Mexican and Indian students also studying at UW-Parkside through an exchange program. As faculty and students have prepared to release the second version of the app, they have improved their mathematical model for algae growth and improved data collection methods. App developers have also started to apply crowdsourcing to the app so that when a user enters his or her algae data, it anonymously travels to a database. The hub of information will begin to produce a picture of algae growth across the world and help illuminate pat-
terns in growth, Riley said. As another cohort of students venture to Germany in May, they will work to continue enhancing the process of evaluating algae samples. The students are slated to create a remote sampling device that will complete water sampling and communicate back results, potentially through texting, according to Riley. Students’ front and center role in the Algae Estimator is among the components that have impressed him about its development. “Most of the great innovations that exist in the app came because a student thought, ‘Hey, this would be nice to have,’” Riley said. n
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Thank You! You Did It! In truly great communities people help one another. Your selfless contributions – reaching an unprecedented
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Alex A. Molinaroli Johnson Controls, Inc.
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Special Thanks to our 2015 Community Campaign Co-chairs
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real estate
LEFT: Shelly Dowler, director of operations, Milwaukee Sting, Michael Coakley, managing partner of C.H. Coakley & Co. and Jenny Hahn, executive director of the Junior Volleyball Association. ABOVE: The warehouse has 28-foot ceilings that the Milwaukee Sting will be able to use for 10 volleyball courts. RIGHT: Entrance to the new Milwaukee Sting facility at N54 W13901 Woodale Drive in Menomonee Falls.
Volleyball club finally finds home in former Kohl’s warehouse
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long the fence outside of the former Kohl’s Corp. distribution center in Menomonee Falls, there are signs that say “rally point 1” and “rally point 2.” Rally points just happen to be how volleyball is scored. Shelly Dowler, director of operations for the MilCORRINNE HESS P: (414) 336-7116 E: corri.hess@biztimes.com Twitter: @CorriHess
waukee Sting, took that as a good sign. The Sting had been fundraising and looking at potential properties to purchase or lease for its volleyball club for nearly a decade. On Dec. 1, the group signed a 10year lease, with the option to extend, for 53,500 square feet from C.H. Coakley & Co. at N54 W13901 Woodale Drive. 12
“We were trying to find the right fit for so long and had to walk away from a couple of other projects that just were not going to meet all of our needs,” said Jenny Hahn, Sting board member and executive director of the Junior Volleyball Association. “We fell on this, and it’s just perfect.” Coakley recently purchased the 388,000-square-foot warehouse from the Village of Menomonee Falls for $7.2 million. Michael Coakley, managing partner of C.H. Coakley & Co., said the moving company plans to use about 200,000 square feet of the building for data and information storage. The Sting and Coakley are planning to invest $1 million in the property to improve the building and turn the Sting’s portion into a state-of-the-art volleyball club that can host regional and state tournaments. B i zT i m e s M i l w a u k e e
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The Sting would also like to eventually build a tiki bar (outside concessions, Hahn joked) and outdoor sand volleyball courts where the Kohl’s Corp. loading docks once were, so volleyball can be played at the facility year-round. Club volleyball is played from June through October. A future bar and possibly outdoor courts – particularly the lighting – would require village approval. The Sting had been leasing space at four locations in two counties: Center Court Sports Complex in Waukesha, Waukesha County Technical College, West Allis Central High School and West Milwaukee Middle School. The club was looking for a space with high enough ceilings, concessions and adequate parking and restrooms. The Coakley property has it all, Hahn said. The space the Sting is leasing has
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28-foot ceilings and there is more than enough parking to host club members and visitors during tournaments. The club also has access to an 18-stall women’s restroom and large men’s restroom. In addition to leasing the 53,500 square feet, the Sting is leasing a kitchen and cafeteria area, three offices and a mezzanine area for storage. There are more than 320 10- to 18-year-olds in the Sting’s club program. The Sting also offers a youth clinic for children as young as 3 and a camp that drew 715 children last year during its eight sessions, said Shelly Dowler, director of operations. Those programs will likely all be extended with the new facility, as could the reach of where the youth are coming from. Dowler is hoping to attract more people from the north shore with the new location. “We were limited where we were because we could only lease certain time slots and space was limited,” Dowler said. “Having the equipment, people and personnel all in one spot will be amazing.” Construction is currently underway on 10 volleyball courts – eight tour-
nament-grade courts and two practice courts. The floors will feature teraflex, which is the same material used at international events and the Olympics, Dowler said. The Sting is hoping to move into the building in February. The first tournaments are scheduled for April. Last year’s Badger State AAU competition was held over two weekends and included 100 teams, with 10 people on each team. “When you do the math, a lot of people are in town for these tournaments,” Dowler said. Menomonee Falls village manager Mark Fitzgerald said he’s pleased to see the warehouse is being rehabbed and reutilized. The village had owned the building since 2011, when it obtained it from Kohl’s Corp. in exchange for a building in the Woodland Prime business park in Menomonee Falls. Kohl’s had been leasing back space until the end of October. The company no longer needs the space since expanding its headquarters in Menomonee Falls.
The Milwaukee Sting is hopes to build outdoor volleyball courts on the property so the club can offer sand volleyball.
In June, the Kohl’s Innovation Center opened in a 366,000-square-foot converted factory warehouse. “The Sting has a great national reputation,” Fitzgerald said. “This is a great use for the building. We’re excited about this. People will be traveling into the village for games and practices and spending money at our restaurants and retail.” Coakley is also planning to lease be-
tween 35,000 and 90,000 square feet to Lamplight. The Menomonee Falls-based outdoor torch and citronella candle manufacturer has its headquarters in Menomonee Falls at W140 N4900 Lilly Road, but plans to move its warehouse and distribution from Pewaukee to Coakley’s building, Michael Coakley said. Coakley is also negotiating with other prospective tenants for space in
the building. C.H. Coakley has 10 warehouses and this one is the second in Menomonee Falls. The other is on Commerce Drive. “My operations guys love this area because they are fishing out of here for labor,” Coakley said. “This is our second launch into Menomonee Falls and it’s a good thing for the village. We’re not just a warehouse; we are part of the community.” n
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cover story
Nick Reistad and Scott Kelley of Raised Grain Brewing Co. in Waukesha.
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CRAFT
COMPETITION More froth fanatics try to make it in Brew City
BY CORRINNE HESS, staff writer
O
ver Labor Day weekend, a former member of the U.S. cycling team, two physicians and a seasoned entrepreneur took a leap that many wort
worshipers before them have taken and moved their best beer recipes from the kitchen to a public tap room. Located in a 1,500-square-foot strip mall in Waukesha, Raised Grain Brewing Co. is one of southeastern Wisconsin’s newest craft breweries, but certainly not its last. Several new craft breweries have opened recently, or plan to open soon, in the region. The small operation brews its 10 types of beer on site, with the capacity to make 750 barrels per year. Nick Reistad, one of the company’s four partners, said in the four months since Raised Grain opened, the brewery has
TROY FREUND PHOTOGRAPHY
made about 125 barrels.
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“So far, the response by both the community and the craft beer community has been outstanding,” Reistad said. “We are a startup company with limited resources and a lot of capital invested, so we have to be smart about what we do so we don’t spread ourselves too thin.”
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TROY FREUND PHOTOGRAPHY
Raised Grain Brewing Co. opened in Waukesha over Labor Day weekend. It is one of 121 craft breweries in Wisconsin.
MillerCoors may still be king on the local scene when it comes to size and volume, but with 121 craft breweries in the state, Wisconsin ranks 13th overall for the number of craft breweries in the country. In 2014, Wisconsin’s craft breweries employed just more than 14,100 people and had a $1.7 billion impact on the state’s economy, according to the Brewers Association, a trade group for craft brewers. And while Wisconsin may rank fourth-slowest for growth in the number of craft breweries, according to the Brewers Association, that doesn’t mean the industry is slowing down here. Far from it. 16
“It’s only natural that you would grow slower than states with more potential room for growth,” said Bart Watson, chief economist with the Brewers Association. “Wisconsin is traditionally a strong brewing state with a history of major brew presences. Not only do you have a good beer culture, but you have a great pool of talent.” The Brewers Association classifies a small brewer as one that has an annual production of 6 million barrels of beer or fewer. A regional brewer is one that produces at least 15,000 barrels annually, such as Milwaukee-based Lakefront Brewery Inc. or Sprecher Brewing Co. in Glendale. B i zT i m e s M i l w a u k e e
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Raised Grain has a 70-seat tasting room at 2244 W. Bluemound Road and is also available at one of the five locations the company recently signed agreements with: Bernie’s Tap Room in Waukesha; Draft and Vessel in Shorewood; Champps Americana in Brookfield; and World of Beer and The Malt Shoppe, both in Wauwatosa. Other members of the Raised Grain team include brewmasters Dr. Scott Kelley, a dermatopathologist with Quest Diagnostics and Dr. James Gosset, an internist with Froedtert & The Medical College of Wisconsin, and former entrepreneur Kevin Brandenburg.
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Reistad was a professional cyclist and worked in advertising before giving up his day job to work for the brewery. He acknowledged the business has its challenges, particularly raising awareness of the new brand, but said once people learn about the beer, it’s an easy sell. “We’re competing to grow the pie – to get people to experience different types of beer who maybe only drink wine or macro brews – we’re not fighting for shares of the smaller pie,” Reistad said. Long before craft brewers began opening their doors, the region was viewed as the beer capital of the United
in the state. “I think it’s a lot harder to start now because there is no time for a learning period,” Pauly said. “At this point, there are so many great options that if the first batches are not exceptional, you are probably not going to get someone to come back and try a second beer.” With so many new craft breweries open in the area, not all of them will experience great success in an increasingly competitive marketplace. Jeff Garwood spent 21 years working in a variety of roles at MillerCoors before
opening Big Bay Brewing Co., a tasting room and brewery at 4517 N. Oakland Ave., in Shorewood, in 2011 with a business partner. By April 2014, Garwood and his partner had parted ways and he revamped his business model, closing the tasting room and scaling back production from 1,500 to 2,000 barrels a year, to 120 to 150 barrels a year. He also found a day job, making brewing more of a hobby than a career. “The overall vision and plans didn’t work out and I needed to make a finan-
cial decision,” Garwood said. “It’s a much smaller scale and I self-distribute now. It may not be big, but it’s a lot more fun.” Garwood still has relationships with several retailers, including Otto’s Wine & Spirits, which has three locations in the Milwaukee area, Ray’s Liquor and The Malt Shoppe in Wauwatosa, and Sendik’s. “I like to shop craft beer and I like going out and finding something I haven’t seen before – so do other craft beer drinkers,” Garwood said. “I think small craft brewers are going to have a very difficult time maintaining a business. I found a
WISCONSIN CRAFT BEER SALES STATISTICS
1.75
$
420.2
billion Economic impact
Impact per capita
(RANKS 11 )
(RANKS 8TH)
TH
ECONOMIC IMPACT
121
850,874
CRAFT BREWERIES
6.3
Barrels of craft beer produced per year
Gallons per 21+ adult
(RANKS 9TH)
(RANKS 9TH)
PRODUCTION
(RANK 13TH)
2.3
BREWERIES PER CAPITA* (RANK 13TH) *PER 100,000 21+ ADULTS
NUMBER OF BREWERIES PER YEAR 100 ———————————————————————————————————— 90 ———————————————————————————————————— 80 ———————————————————————————————————— 70 ———————————————————————————————————— 2011 2012 2013 2014 CREDIT: Brewers Association
States. Milwaukee was once home to the Jos. Schlitz Brewing Co., which closed its Milwaukee brewery in 1982, and Pabst Brewing Co., which closed its Milwaukee brewery in 1996. Miller Brewing Co. parent company SABMiller and Denverbased Molson Coors Brewing Co. entered into a joint venture in 2008 and became MillerCoors LLC, which is now headquartered in Chicago, but still brews much of its beer in Milwaukee. With the closing of the macro breweries and the formation of Sprecher Brewing Co. in 1985 and Lakefront Brewery in 1987, Milwaukee was left with one major brewer and newer options. According to public filings, MillerCoors has seen its sales volume decrease close to 10 million barrels since the joint venture formed due, in large part, to increased competition from many smaller independent breweries that have expanded consumer choice. The total number of U.S. breweries reached a record level in 2015, according to a year-end review from the Brewers Association. There are now 4,144 breweries in the country, topping the historic high of 4,131 breweries in 1873. In 1996, there were 1,000 breweries. When Russ Klisch started Lakefront Brewery 28 years ago, he set out to revive the brewing industry in this country. Today, his brewery distributes Lakefront products to 35 states, Israel and Canada. Lakefront produced 46,000 barrels of beer in 2015, an 8 percent increase over 2014. Klisch said he recognizes that there is a lot more competition in the market than when he started, but he views it as good competition. “If you work hard and do the job you are supposed to do, you are going to have enough customers,” Klisch said. “It’s not too much different than being in a band; you can’t just sit there and hope there is only going to be one.” 3 Sheeps Brewing Co. in Sheboygan has found great success in its first three years of operation. Since opening in April 2012, the brewery has gone from 560 barrels the first year to 4,000 in 2015. 3 Sheeps is relocating to a former Coca-Cola distribution plant in Sheboygan early this year to expand its operations. The new location will allow the brewery to increase production to up to 80,000 barrels a year, expand distribution and feature experimental beers. Founder and brewmaster Grant Pauly believes he opened his business right before the surge of craft breweries began
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Raised Grain brews 10 types of beer, which are served at its 70-seat tasting room.
way for this to be fun and sustainable.” Since 1980, 51.5 percent of the brewpubs and 76 percent of the microbreweries that have opened are still open, according to the Brewers Association. Comparatively, about 40 percent of new restaurants are still open after the first three years. Jim McCabe, who opened the Milwaukee Ale House in the Third Ward in 1997 and is now producing 13,000 barrels of beer annually with Milwaukee Brewing Co., said one of the biggest challenges of being a craft brewer is staying relevant. “What a great time to be a beer drinker – there are so many choices,” McCabe said. “When you are a brewer, it’s tricky to build brand loyalty.” As McCabe was speaking, his fellow 18
brewers were experimenting with the Sheepshead Stout, creating a possible raspberry or cocoa stout. Knowing that IPAs are the biggest selling craft beer, Milwaukee Brewing is planning to offer a year-round seasonal citrus IPA and four different seasonal IPAs, in addition to its regular seasonal beers, in 2016. “It’s challenging and it’s truly a lot of constant screwing around,” McCabe said. “We’re lucky because we started with the Ale House so we have some built-in brand loyalty, but right now every home brewer seems to be rushing to the table like musical chairs.” McCabe has seen exceptional growth over the last few years and says he has outgrown the 15,000 square feet the Walker’s B i zT i m e s M i l w a u k e e
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Point brewery is in at 613 S. Second St. Milwaukee Brewing Co. also has another 10,000-square-foot building for storage in the Walker’s Point neighborhood, but space is tight there, too, McCabe said. “We’re looking at our options,” he said. “We’re committed to staying in Milwaukee.” McCabe said he believes that only a small handful of the new craft breweries that are opening will make it, if they are well capitalized and know how to sell. He said beer consumers will not be patient while brewers are trying to figure out their recipes. “I do wish them well,” he said. “Some people will hit it on all cylinders, others won’t. Overall, the pie is going to keep
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growing and the thirst is going to continue.” McCabe will be one of the speakers during Milwaukee’s first brewery incubator program, which is being hosted by brewery resource provider The Crafter Space. The 10-week program, Barley to Barrel, begins Feb. 2 at Company Brewing in Milwaukee’s Riverwest neighborhood. The purpose is to provide beer enthusiasts with training on everything from business plans to beer brewing. “We’re seeing the craft bubble building and think it will pop,” said Michael Anderson, co-founder of Crafter Space. “You could have a great beer and bad marketing, or awesome marketing and not so great beer. We want to find a way to put that together. And at the end of the
day, Milwaukee should be the Napa Valley of craft beer.” Kevin Wright is one of two brewers planning to open a craft brewery in the Menomonee Valley in Milwaukee this year. Wright has invested $1.8 million to open Third Space Brewing at 1505 W. St. Paul Ave., on the site of the old Geuder, Paeschke & Frey manufacturing facility in the Menomonee Valley. He and his business partners are leasing about 15,000 square feet for a tasting room and outdoor beer garden. Third Space will start with six beers and rotate in new seasonal beers. It will have equipment to brew up to 3,500 barrels per year.
For the past six years, the Thiensville native has been head brewer and director of brewing for a 40,000-barrel-per-year operation at Hangar 24 Craft Brewery in Redlands, Calif. Wright knows the industry is competitive, but believes Third Space will be successful. “We’re creating a brand, a brewery and a beer people can respond to,” Wright said. “Our quality will be a big differentiator. The formal training and education I have, plus my experience, will set us apart.” The second Menomonee Valley craft brewery in the works is City Lights Brewing Co., which is renovating the former Milwaukee Gas Light Co. red brick water tower
to use as a brew house and tasting room. The company is spending about $1 million on equipment and another $750,000 to $1 million to build out the five-story tower. City Lights started in 2012 as 4 Brothers Blended Beer Co. in Waukesha, contract-brewing its beer at Sand Creek Brewing Co. in Black River Falls. The long-term goal was to develop relationships with distributors and develop a financial history before starting a craft brewery of their own, said Jimmy Goshman, co-owner of City Lights. City Lights is now working with St. Paul, Minn.-based Johnson Brothers Liquor Co. to distribute its beer.
Goshman anticipates brewing 7,000 barrels by the end of the first fiscal year and eventually brewing 15,000 barrels. “We want to get demand up in the state and then our distributor will move us into Minneapolis,” Goshman said. What will set them apart and how will they try to succeed? “We’re only going to be available in cans,” Goshman said. “We’re also as prepared as we can be. That’s one advantage of starting out as a contract brewer – we were able to make mistakes but on a smaller, less expensive scale,” Goshman said. “I’m not saying we won’t make mistakes in the future, but hopefully not as many.” n
STATE LAW HURTS WISCONSIN CRAFT BREWERY INDUSTRY BY CORRINNE HESS, staff writer On a tourism website for Asheville, N.C., there are many ways to plan a “Beercation Getaway.” From a three-hour Brews Cruise bus tour through the city to a stop at The Hop Ice Cream Café, the mid-sized southern town is attempting to secure its place as Beer City USA.
While Wisconsin ranks 13th in the nation with 121 craft breweries and 2.3 breweries per 100,000 drinking-age adults, North Carolina is hot on our heels. The state has 101 craft breweries and 1.4 breweries per 100,000 drinking-age adults, according to the Brewers Association, a national brewer trade association. Some believe the reason is North Carolina’s commitment to the industry. “Asheville went after the craft brew industry and now this sleepy tourist town is producing millions of gallons of beer,” said Jim McCabe, owner of the Milwaukee Ale House in the Third Ward and Milwaukee Brewing Co. in Walker’s Point. “Small towns across the country are creating breweries that are the size
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of Lakefront Brewery and they are able to produce and export. But there are some real hurdles to brewing beer in Wisconsin.” The major hurdle McCabe is referring to is a provision in the 2011 state budget that made Wisconsin one of 32 states to prohibit anyone who has a liquor license, or operates a retail liquor business, from obtaining a permit for a brewery. Because of the law, McCabe had to sell his second Milwaukee Ale House location in Grafton. The Third Ward location was exempt because McCabe also brews beer on the premises. McCabe pointed to a number of breweries across the country that have been successful, in part, because of their ability to also operate a restaurant. Elysian Brewing Co. in Seattle operates four restaurants in the city. Since opening in 1996, Elysian has brewed more than 350 craft beers. “That model is not possible in Wisconsin and it’s a great way to get your brand out and entrenched in an area,” McCabe said. When Justin Aprahamian, chef and owner of Sanford Restaurant in Milwaukee, and business part-
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ner John Lavelle wanted to open Like Minds Brewery in mid-2015, they looked at dozens of sites in Milwaukee but were unable to close the deal because of the current law. Aprahamian and Lavelle ended up opening Like Minds in Chicago. State Rep. Dale Kooyenga , R-Brookfield, said after hearing about Like Minds, he has been working with the Wisconsin Department of Revenue to try to change the policy. He believes this provision will be an issue that will be addressed in the next legislative session. “The bottom line is there are a lot of crazy laws around this industry that are a remnant of prohibition,” Kooyenga said. “There are ways we could peel some of it back, in a reasonable way, to accommodate entrepreneurship without blowing up the whole system.” McCabe believes if people knew how complicated the law was, they would encourage change. “What’s great about Wisconsin is there is so much history here with the big brewers, people do care about us having a beer culture,” he said. “We are a tourism state – craft beer could be a great part of destination tourism.”
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workforce development
MKE Fellows Program expands
Internship component aims to attract diverse talent to Milwaukee BY ERICA BREUNLIN, staff writer
U
pon acceptance into the MKE Fellows Program, Devon Kidd attended a signing day in his high school’s library, similar to the kind of signing day colleges and professional sports teams hold for promising athletes. Kidd, a 2012 graduate of Rufus King International School, recalls then-Milwaukee Public Schools superintendent Gregory Thornton nodding to the event as the first at which he’d seen young black men drafted into a program based on academics, not sports. Athletic agility in young black males isn’t an issue, Kidd said. “But we need to see variety in black men,” he said, from academic strength to talents in acting, singing and drawing. Helping young black men groom those kinds of talents and chart a pathway through college is at the center of the MKE Fellows Program. The college pipeline program, which recently rebranded, launched in 2011 to give talented area students the opportunity and full tuition support to enroll in the all-male, historically black Morehouse College. The Atlanta school has educated leading figures like Dr. Martin Luther King, Jr., as well as Spike Lee and Samuel L. Jackson. With a surge of interest from students, the MKE Fellows Program expanded in 2014 to include other historically black institutions. Program organizers also built out an internship component last summer in order to expose students to
Milwaukee’s business community and help them realize their potential to pursue a career in the city. That internship program’s capacity will more than double for 2016 as organizers aim to provide job experience to about 40 college students across 20 to 25 employers. The program is also casting a wider net among schools, as students from schools that are not historically black are eligible to apply – schools such as Mar- ABOVE: Devon Kidd with Alison Ligon of Morehouse College as she presented him with the Dr. Pickens Award for being the quette University, top English major in his class. TOP RIGHT: Openning remarks to MKE Fellows at the Greater Milwaukee Foundation. BOTTOM along with the Uni- RIGHT: Morehouse College student Devon Kidd presenting the final findings of his Legacy Bequest Project to the MKE Fellows versity of Wisconsin at a luncheon at the Greater Milwaukee Foundation. at Milwaukee, Oshkosh and Platteville. The program caters to who molded the College and sending additional students students from Milwaukee or Madison as it MKE Fellows Proeach year, according to Daniels. The works to give them a feel for what it would gram after being team of executives initially collected be like to plant a career in Milwaukee. approached to raise about $1 million to benefit students. Demand for the program is “enor- college scholarship The first wave of students backed by mous,” said John Daniels, Jr., chairman funds for a group of those scholarship dollars will graduate emeritus of Milwaukee-based Quarles & area students, most from Morehouse College this May – inBrady LLP and one of the leading coordi- of whom belonged cluding Kidd, who will likely return to Daniels nators of the MKE Fellows Program. to Milwaukee PubMilwaukee to work for a few years before Daniels was part of the original lic Schools. The goal pivoted around applying to New York University to purteam of prominent business leaders sending those students to Morehouse sue a graduate degree in dramatic writing.
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Kidd’s interest in the MKE Fellows Program piqued as he wanted to surround himself with other black men in “a fast-paced educational environment,” he said. Minority students of all backgrounds often don’t have an opportunity to see minority leaders in action, according to Kidd. “When you grow up in those types of minority groups, you oftentimes don’t see those kinds of people in power, whether it be in your community or on a media basis,” he said. The idea of attending Morehouse College and seeing so many black men approach education so “vigorously” and “rigorously” attracted him to the scholarship program. As a MKE Fellows student, Kidd interned at the Greater Milwaukee Foundation last summer. Within the foundation, Kidd found a family environment and co-workers who cared about him as both a student and a person. Much of his time was dispensed to a legacy project in which he tracked how donors had allocated their funds so he could
project how future donations might be invested. By the end of the summer, Kidd had tracked about $200 million. In addition to learning hard job skills, he polished a variety of soft skills, including the importance of developing strong partnerships with colleagues and making individuals feel appreciated by thanking them for their specific contributions to a project or cause, he said. Other interns spent their summer days at settings in health care, engineering, sales and marketing, and law. Among the dozen workplace participants were Harley-Davidson Inc. and Johnson Controls Inc., as well as the Milwaukee Bucks and Quarles & Brady. Beyond their full-time internship experiences, MKE Fellows students attended professional development seminars, explored offices through lunch-and-learn sessions hosted by a variety of businesses, and checked out Milwaukee amenities like the Milwaukee County Zoo. Next year, the program will likely include an element of community service to further
extend students’ ties to Milwaukee. To the best of Daniels’ knowledge, no other program like MKE Fellows exists in the country. Milwaukee is “setting the pace” with developing talent among young black male students and connecting individuals to careers in the city, he said. The MKE Fellows Program is still recruiting employers for next summer’s internship cycle, which will run at least eight weeks. An advisory committee composed of 15 professionals from area companies is currently helping structure the internship program to make it as appealing to college students as possible.
W OR K FOR CE BRIEFS
Unemployment rates decrease across southeastern Wisconsin The Milwaukee-Waukesha-West Allis metropolitan area saw its unemployment rate decrease from 5.3 percent to 4.4 percent over the 12 month period ending in November, according to preliminary unadjusted data from the U.S. Bureau of Labor Statistics. There were 43,800 unemployed in the Milwaukee metro area in November 2014, compared with just 36,400 in November 2015.
It all starts with leadership...
In the Racine metropolitan area, 5,700 were unemployed in November 2014, compared with 4,800 in November 2015. The unemployment rate in Racine decreased from 5.8 percent to 4.9 percent during the 12-month period. In the Sheboygan metropolitan area, 2,400 were unemployed in November 2014, and 2,100 were unemployed in November 2015. The unemployment rate in Sheboygan decreased from 3.9 percent to 3.3 percent during the year. Wisconsin as a whole saw its unemployment rate decrease from 4.7 percent to 4 percent in the November 2014 to November 2015 time period.
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Within the MKE Fellows Program, the Greater Milwaukee Committee matches students with internship opportunities and the employers behind those opportunities compensate their student workers. The program offers the city’s cadre of employers “a great talent resource,” Daniels said, as the business community’s success hinges on its ability to draw talent from diverse groups. “I think one of the keys here is to recognize that if we can keep building this momentum, we can create an incredible talent base that has been untapped to date in Milwaukee,” Daniels said. n
In November 2014, there were 146,300 unemployed Wisconsin residents, and by November 2015, that figure had decreased to 123,900.
MilwaukeeJobs.com to expand, add up to 100 employees Job search site MilwaukeeJobs.com plans to nearly double its office space in downtown Milwaukee and add up to 100 employees over the next two years. The Milwaukee-based company currently has 65 employees in Milwaukee and another 15 employees at its Washington, D.C., and Minneapolis
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offices, said Liz Dotson, vice president. It occupies 22,000 square feet on the 11th floor of the 1000 North Water building in downtown Milwaukee, and in the first quarter of 2016 will expand to the 12th floor as well, for a total of 40,000 square feet. “The last few years we have started offering government compliance services for our employers, and that has helped us grow tremendously,” Dotson said. The government compliance services connect federal contractor employers with community organizations to hire veterans and people with disabilities. MilwaukeeJobs also helps employers offer veteran priority referral by cross-posting their positions to state job banks, she said. MilwaukeeJobs.com plans to hire 50 to 100 employees over the next two years to accommodate its growth, mostly in sales positions, as well as in marketing, IT and compliance. The company has a network of job search sites around the country and 5,000 employer clients nationwide, 2,000 of which are in Wisconsin. It’s the largest local employment site in the state.
Milwaukee ranks 90th in best cities for millennials Milwaukee ranked as only the 90th best city in the nation for millennials to live in, according to the website niche.com. Niche.com ranked 217 cities of 100,000 or more residents. Each city was graded on “key millennial-centered factors,” the website says, including access to bars, restaurants, affordability and job opportunities. Other factors that were considered included crime and safety, median rent, and the number of residents in a city that are 25 to 34 years old. Two other Wisconsin cities fared better in the rankings than Milwaukee. Madison ranked 17th best in the nation for millennials and Green Bay ranked 81st.
workforce development
Workforce solutions collaborative pushing to launch USBLN chapter
Organization would coach employers on hiring, training individuals with disabilities
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ear of following the wrong hiring procedure often deters employers from moving forward with job candidates who have disabilities, according to Lynn Kirkbride, director of affiliate relations for the U.S. Business Leadership Network. Employers also hesitate to hire individuals with disabilities as they believe they must first know everything about every disability, Kirkbride said. Kirkbride “Fear continues to be the number one barrier to getting people employed,” she said. A workforce solutions collaborative comprised of local nonprofit agencies is hoping to quell workplace fear as it advocates for the development of a USBLN chapter in the greater Milwaukee area. USBLN operates as a national nonprofit organization that touts disability inclusion in the workplace in order to spur business performance and growth. The organization, which has close to 40 sites across 26 states, invites businesses into the conversation on hiring employees with disabilities and provides them a safe place to openly address their concerns and questions about the hiring and training process. “Until businesses feel more comfortable and understand how to recruit, hire, retain, accommodate and those kinds of things for people with disabilities, they’re not going to hire them,” Kirkbride said. At the heart of affiliate USBLN organizations is a mission to coach employers on best practices surrounding hiring and training individuals with disabilities. USBLN organizations facilitate a variety of programming to meet the needs of participating businesses and employees. While some organizations feature a mentoring component, others hold awards and recognition events, run businessto-business trainings, and bring in guest speakers to educate business executives
BY ERICA BREUNLIN, staff writer
about specific disabilities or accommodations to be made in the workplace. Some USBLN chapters partner with other organizations to run career and resource fairs. Select chapters also offer onsite training for employers so they fully understand the hiring and training process of staff members with disabilities. On a national level, USBLN holds an annual conference during which members of different affiliates can exchange best practices, businesses can learn how to better reach out to consumers with disabilities, and professionals with disabilities can learn how to advance their career paths. Bob Glowacki, president and chief executive officer of Easter Seals Southeast Wisconsin, has been a leading force behind the push to introduce a USBLN organization to the region. “From my personal experience in talking with various employers, many of them want to do the right thing in a sense in hiring individuals with disabilities and special needs,” Glowacki said. Challenges, fears and myths of employing job candidates with disabiliGlowacki ties stand in the way of hiring progress. USBLN can “help an employer overcome some of those obstacles or get answers to their questions so that they can do what they want to do,” Glowacki said, adding that what employers want to do is fill positions currently open. Glowacki and his colleagues within the workforce solutions collaborative are now focused on assembling a steering committee of six business champions who can guide the start-up of a local USBLN organization that tailors its functions to the needs of local employers. None of the six leaders have been secured, according to Glowacki, but a number of employers have been interw w w.biztimes.com
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ested in the idea. In forming the structure of the organization, the steering committee could pursue one of two options. The committee could start an independent 501(c)(3) organization or collaborate with an association or nonprofit that would serve as the fiscal agent and house the organization until it is ready to launch on its own. The organization would be membership driven, and membership support would back its growth. The steering committee would find the best way forward for Milwaukee in creating a USBLN affiliate, Glowacki said, but first and foremost is a priority to gather likeminded people together to discuss the right steps to follow. Glowacki aims to pull together six champions by the end of the first quarter. Along with other members of the workforce solutions collaborative, he is tapping other USBLN affiliates to learn about their process of building an organization and talking to companies engaged with USBLN’s national efforts – companies such as AT&T and Walgreens. From Glowacki’s perspective, diversifying a workforce with individuals with disabilities has layers of benefits. “There’s the tangibles of longer loyalty, filling those entry level positions, and the customer being very positive about
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your organization,” Glowacki said. Those can be “market differentiators” when the public looks at a company and its commitment to the community, he added. Incorporating staff members with disabilities can also boost a company’s employee culture and its bottom line, according to Kirkbride. “It’s not only the right thing to do, but it makes good business sense and it impacts the bottom line in a positive way,” she said. Services provided by a local USBLN chapter could be particularly useful for federal contractors and subcontractors who, under Section 503 of the Rehabilitation Act of 1973, must comply with recently enforced, rigid affirmative action goals focused on individuals with disabilities. Across industries, employment prospects for individuals with disabilities will not improve until businesses take a more active role in the dialogue on inclusive workforces, according to Kirkbride. “Until you have business at the table, you’re not going to increase the employment rate of people with disabilities,” she said, adding that that rate has essentially stagnated throughout the last two decades. In 2014, 17.1 percent of people with disabilities were employed, according to statistics from the U.S. Bureau of Labor Statistics. n 23
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Why Participate: • Drive business development efforts • Employment recruitment • Highlight your organization - your team and history • Economic development tool • Public relations and branding • Show your pride for doing business in Wisconsin Showcase your commitment to business growth in Wisconsin by participating in the only statewide resource guide fostering economic growth in the state.
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strategies Robbing the family till Don’t be too trusting
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he names have been changed in this story to protect the guilty – and innocent – but the story is true. I received a call late one evening at home. It was Janelle. I had advised her in her career, and saw her advance quickly in the ranks at her family business. Janelle had just been arrested and she was calling to give me a jailhouse confession of sorts, to tell me how she had let me down and had let herself down. She was recently married and had a baby on board. She had the money from the family business by including a deceased relative on the payroll whose account she oversaw as executor. She used the money to pay for her wedding,
her nails, her new car. Then she shared the most striking thing: “I asked my uncle to walk me down the aisle on my wedding, and he
family business, it stings far worse. In this case, she stole $40,000 in six months. Some went up the nose of her co-
“ Having an independent person, like an accountant, look over your books insures independent oversight and offers reassurance.” had no idea his money was paying for the whole wedding.” Fraud and theft occur in many businesses, but when the crime occurs in a
caine-addicted husband, but the vast majority went to the wedding. The breach was not just a breaking of the law, but a blow to the family busi-
BIZ B R I E F S
Arthur Thomas joins BizTimes as reporter BizTimes Media has hired Arthur Thomas as a reporter who will cover manufacturing and technology for the BizTimes Milwaukee magazine and BizTimes.com.
Thomas
Previously, Thomas was the managing editor of the Waukesha Freeman. He started working for the Freeman in mid-2013 as a reporter covering multiple beats, including several communities, education and politics. In April of 2014 he was promoted to managing editor of the Freeman. Prior to joining the Freeman, Thomas was an intern for WisPolitics.com and an education reporting intern at the Milwaukee Journal Sentinel. Thomas graduated from Carroll University with a journalism degree in 2011 and has made significant progress toward a master’s degree in journalism at Marquette University. “We are very excited to have Arthur join the BizTimes editorial team. He is a talented young journalist that already has a broad base of reporting experience and has hit the ground running here,” said Dan Meyer, publisher and owner of BizTimes Media. “I’m grateful for the opportunity to contribute to the great products BizTimes already offers,” Thomas said. “Readers should expect quality,
well-sourced reporting from me and I will work hard to be their go-to source for manufacturing and technology news in southeastern Wisconsin.” Thomas is also a nationally certified men’s gymnastics judge and spends weekends in the winter judging meets throughout southeastern Wisconsin. Follow Thomas on Twitter @arthur8823.
Foreclosure rates improve locally and nationally Foreclosure rates and mortgage delinquency rates are improving locally, statewide and nationally as the housing market continues its long comeback from the meltdown during the Great Recession. Foreclosure rates in the metro Milwaukee area, Wisconsin and the nation decreased in October compared to the same month last year, according to the latest data from Irvine, Calf.based CoreLogic Inc. The rate of foreclosures in the metro Milwaukee area among outstanding mortgage loans was 0.88 percent for October 2015, a decrease of 0.07 percentage points compared with October 2014, when the rate was 0.95 percent, according to the CoreLogic data. Foreclosure activity in the metro Milwaukee area was lower than the national foreclosure rate, which was 1.20 percent for October 2015, an improvement from 1.53 percent in October 2014. The state of Wisconsin had a 0.65 percent foreclosure rate in October, down from 0.73 percent in October 2014. w w w.biztimes.com
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The mortgage delinquency rate also decreased locally and nationally in October, according to the CoreLogic data. In the metro Milwaukee area, 2.87 percent of mortgage loans were 90 days or more delinquent in October, compared with 3.40 percent for the same period last year, representing a decrease of 0.53 percentage points. In Wisconsin, the mortgage delinquency rate was 2.07 percent in October, an improvement from 2.54 percent a year ago. Nationally, the mortgage delinquency rate in October was 3.35 percent, an improvement from 4.13 percent a year ago.
Area manufacturing continues contraction in December Manufacturing activity in the Milwaukee area continued to contract in December as the Marquette-ISM report registered a seasonally adjusted 48.53, an improvement from November and October, when the index was 45.34 and 46.66 respectively. But the reading puts the index in negative territory for a ninth straight month. A reading below 50 indicates the industry is contracting, while a reading above 50 indicates growth. The index has been above 50 for 18 of the past 28 months. Respondents to the survey were generally mixed in their expectations for the next six months. Half said they expect the same conditions, while roughly 42 percent said they expect things to improve. The percentage expecting worse conditions dropped from 17 percent in November to 8 percent.
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DAVID B O R S T FAMILY BUSINESS
ness. It was a business that was based on trust. Family members did not check on family members because, after all, they are family. Sadly, this makes it easier to dip into the family coffers to raid the till. With no checks and balances, no oversight from a third party, this sort of crime against the family can easily occur. We would like to think that certain things are sacrosanct, but they are not. Church poor boxes, the red kettle of the Salvation Army and family treasuries should be, but the truth is because of the veil of trust, these thefts are made easier. Many families in business eschew very simple things that can assist in detecting or preventing these situations: Double signatures on checks, yearly audits, even mandatory vacations of longer than a week for everyone involved in the accounting areas. Crimes can be perpetuated much easier if that person is in the office every day and can catch things before anyone else knows about what just transpired. Signatories should ask questions and should not just blindly sign things. And yes, while an audit is not free, having an independent person, like an accountant, look over your books insures independent oversight and offers reassurance. Better yet, it offers deterrence from robbing the family till. What makes family businesses so great is being able to trust people because they are blood. When one person succeeds, the whole family succeeds. People work harder when it is for them – for the family. When your name goes on the door, you just care more. That care should extend to watching the family till. n Dr. David Borst is executive director and chief operating officer of the Family Business Legacy Institute, a hub for all things family business related. He can be heard every Saturday at 6:20 a.m. on WTMJ radio’s “All Business.”
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strategies
Glass ceiling is alive and well
Why mentoring for women is so important Question:
“Some colleagues and I (all women) are exploring starting a mentoring program at our company. All of us have worked hard to climb the ladder here. Now that we are starting to look down the road toward retirement, we want to help the women that follow us so that they can have an easier and, hopefully, even more successful path. Do you have any suggestions for how we can sell this idea to the top leaders (all of whom are men!) so that this becomes something more than a ‘book club for the girls?’ We want to build a serious and significant program. Where do we start?”
Answer: Unfortunately, the employment state of affairs for many women is still cause for concern. Historically, women have reported having a more difficult time finding mentors than men. According to a 2010 World Economic Forum report, 59 percent of companies surveyed globally reported having mentoring programs; 28 26
percent had women-specific programs. Women are forecasted to account for 51 percent of the increase in total growth in the U.S. workforce by 2018, according to the U.S. Department of Labor. According to a 2013 report by McKinsey Research, women claim 53 percent of entry-level management jobs, but only 37 percent of mid-manager jobs, and only 26 percent of VP jobs and up. The “glass ceiling” is alive and well, as women still only make 75 percent of what men earn for comparable work. Women, when they do hold senior leadership roles, often are in “soft” assignments such as HR; it is tougher for them to land “C-suite” assignments. The reader specifically talks about a mentoring program for women. She is spot on in terms of identifying an issue for which most organizations’ performance is absolutely awful. Many, many women simply have never had the chance to work with a mentor. In 2011, LinkedIn found that 80 percent of women reported never having had a mentor at work. A 2000 study by the American Psychological AsB i zT i m e s M i l w a u k e e
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DANIEL SCHROEDER HUMAN RESOURCES sociation found that younger female psychologists wanted most to emulate women who were both leaders and had family responsibilities…but these busy women were the ones with the least amount of time to serve as a mentor! Ninety-five percent of young women are afraid to ask for a mentor, according to the women’s networking organization Levo League. There is also the brutal reality that men typically benefit more from mentoring than do women. This has to do with the fact that men often gain advantages because of the nature of the mentoring relationships they establish. A 2010 study by Catalyst found that mentors benefitted men more than women because men tend to secure mentors in more senior positions. In 2010, Harvard Business Review suggested that women are “over-mentored” and “under-sponsored.” So, what are the implications of the
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studies I have referenced so far? Well, first of all, the glass ceiling still exists in all too many organizations (i.e., women can only go so far before they bump into barriers established by the “good old boys club”). Secondly, if they want to have the mentoring really give them a career boost, women should choose wisely when selecting a mentor (i.e., choose a person who is an “influencer” or “connector”). Third, and perhaps most importantly, for mentoring to be most effective, senior male leaders must actively support the program. From where I sit, this issue is a strategic concern, not just a feminist or human resources concern. Securing and retaining top talent, no matter the specific demographic group, is a key ingredient, perhaps the most critical ingredient, to promote ongoing organizational effectiveness. What can the reader do to work with her colleagues to craft a mentoring program for women at her company? »» First, using the data from this column and other sources, including specific data from her company, she needs to make the clear-cut business case that developing talent (all talent, including women!) is a strategic business imperative! Because women will increasingly populate the workforce (and eventually the leadership ranks), developing an organization-specific mechanism by which high potential women are identified and developed is an increasingly urgent concern. »» Second, the reader can make the case that mentoring is a proven and powerful approach that builds relationship capital across the organization (i.e., people who get involved forge strongly positive relationships). »» Third, she can appeal to the leadership legacy concerns of the top leaders as she sells her concept. Mentoring is a way for leaders to pay back the organization, consistent with a servant leadership approach and the concept of building a sustainable leadership legacy. Do the top leaders want to set up the organization for even greater success in the future? Or, do they want to ride into the sunset and let somebody else worry about the leadership void they left behind? n Daniel Schroeder, Ph.D., is president of Brookfieldbased Organization Development Consultants Inc. (www. OD-Consultants.com). He can be reached at (262) 8271901 or Dan.Schroeder@OD-Consultants.com.
strategies would like to schedule time to have a conversation with you about 2015. I’d like to hear your perspective about how things went for you.” At this point, schedule time (preferably one to two weeks out) and give them the list of questions to prepare. Ask them to invest focused time preparing for this conversation. Let them know in advance that you will share your perspective, as well. Step three: Have the conversation. Going into this conversation, a few reminders for you: »» For each question you discuss, have your employee speak first. Remember, this was his or her experience. »» As the employee shares reflections, you will want to delve deeper: • “Tell me more about that.” • “Can you share a couple of examples?” • “How did that make you feel?” • “What was the impact of that?” »» After he or she has shared: • Acknowledge his or her perspective, particularly where you have noted agreement. • Add your perspective. • Avoid the phrase, “Now, let me tell you what I think.” • Instead, use the phrase “Let me add a few things that you didn’t mention (or that I see differently).”
Have these conversations
Millennials appreciate opportunity to give feedback
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anuary is often a time of new resolutions. This is a good time for leaders AND employees to plan for a highperformance, high-satisfaction year. One part of your planning for the upcoming year (with EACH of your millennial employees) should include an opportunity to reflect on 2015. Millennials are interested in intentional leaders; leaders who have a vested interest in their work experience. They are less inclined than generations who preceded them to stick around if they work for an unimpressive boss. Almost universally, we are hearing organizations voice struggles with retaining their millennials. If you’re interested in retention, do not underestimate the power of conversation. Many young employees are feeling ignored, even invisible. They want time for informal conversations with their leaders. The launch of a new year can mark the time for a traditional conversation. Leaders, if you have not done this already with your employees, have a conversation about how the year went. If you
conduct formal performance reviews, you will want to follow this type of process to ensure a participative conversation. If you do not conduct formal reviews, you can use this same process to chat about the year more informally. Either way, the key here is CONVERSATION. While you, as a leader, are ultimately responsible for the performance of your team, each member of your team has a fairly solid opinion about how things are going. Employees want to be involved in the conversation, especially as it pertains to them. Step one: Prepare a list of questions you would like to incorporate into your conversation. You may consider questions like: »» In general, how did the year go for you? • What did you feel particularly good about? • What did not go particularly well for you? »» In what ways did you grow over the past year? w w w.biztimes.com
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ALETA NORRIS GENERATION Y »» Where did you experience missed opportunities or disappointments? »» If you were to rank your areas of responsibility by preference (No. 1 is your favorite), what would the order look like? »» Category by category (work performance, quality of work, team collaboration, demonstration of company values, etc.) • What went well for you in this area of responsibility? • What didn’t go as well as you would have liked? Step two: Reach out to your employee to schedule time for this conversation. You might say something like: “I
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Step four: Shift to a conversation about 2016. You can informally ask, “So as you look ahead to 2016, what kinds of things would you like to continue, and what might you like to see done differently in comparison to 2015?” At this point, it will be beneficial for you to remain in a mode of listening and curiosity. Ask questions, take notes, dig for more detail….particularly when you see something differently than the employee does. You can schedule another conversation to revisit planning for 2016. As our client leaders have these kinds of conversations with their employees, the consistent response from the employee is GRATITUDE. And…grateful employees often stay where they are! n Aleta Norris is a co-founding partner of Brookfield-based Living As A Leader, a leadership training, coaching and consulting firm. You may send questions to her at anorris@livingasaleader.com. To read all of her columns, visit the knowledge portal at www.livingasaleader.com.
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biz connections CA L E NDAR
NONPROFIT DIRECTORY
SCORE SE Wisconsin will host How to Get Endless Referrals on Saturday, Jan. 16, from 9 a.m. to noon at Ottawa University, 245 S. Executive Drive, #110, in Brookfield. The seminar will discuss developing a continuous stream of referrals through networking, including the best techniques for working a crowd and tips for the follow-up process. Cost is $35. For more information or to register, visit www.scoresewisconsin.org.
SPOTLIGHT
The Wisconsin Women’s Business Initiative Corp. will host Strong Women Strong Coffee on Wednesday, Feb. 3, from 7:30 to 9 a.m. at WWBIC Milwaukee, 1533 Rivercenter Drive in Milwaukee. The event encourages female business professionals and entrepreneurs to build meaningful connections, and will include a female leader’s “espresso-monial.” Cost is $10, and includes coffee and refreshments. For more information or to register, visit https://www.wwbic.com/classes/class/1007/. The Waukesha County Business Alliance will host a Professional Women’s Development Network Breakfast on Tuesday, Feb. 9, from 7:45 to 9:15 a.m. at Western Lakes Golf Club, W287 N1963 Oakton Road in Pewaukee. Wisconsin Lt. Gov. Rebecca Kleefisch will address attendees over breakfast. Cost is $30 for members. For more information or to register, visit www.waukesha.org/events. The Metropolitan Milwaukee Association of Commerce will host Lunch with MMAC president Tim Sheehy on Friday, Feb. 12, from noon to 1 p.m. at its offices, 756 N. Milwaukee St. in Milwaukee. The event offers members the opportunity to have an informal conversation with Sheehy about business priorities and get more information about MMAC’s key initiatives. Cost is $10. For more information or to register, visit web.mmac.org/events. See the complete calendar of upcoming events & meetings.
BIZ NO T ES Kondex Corp. Lomira-based Kondex Corp. has been named a Partner level supplier for 2015 in the John Deere Achieving Excellence Program. The Partner level is the highest rating afforded to a John Deere supplier. Kondex, which manufactures wear parts and components for John Deere’s Ag and Turf division, was recognized for its continuous improvements and its commitment to delivering top quality products and service. Like other Achieving Excellence participants, Kondex is reviewed annually in the areas of quality, cost management, delivery, technical support and responsiveness. The program was started by John Deere in 1991 to promote continuous improvement. Kondex manufactures cutting and wear-resistant components that have mostly agricultural applications.
PRSA Southeastern Wisconsin
Inc., treasurer; Phill Trewyn, Mueller Communications, secretary; Tim Olsen, APR, Froedtert Health, membership officer; Karren Jeske, APR, Standard Process Inc., ethics office; Meg Hemmelgarn, STIR Advertising & Integrated Messaging, director at large; Don Klein, Aurora Health Care, director at large; Kelly Savage, APR, State Farm, director at large; Matt Wisla, Marquette University, director at large; Emily Bultman, Wisconsin Dental Association, assembly delegate; W. Patrick McSweeney, APR, Laughlin Constable, assembly delegate; Audra Jacobs, Bader Rutter, assembly delegate.
The Bon-Ton Stores Inc. Kathryn Bufano, president and chief executive officer of The Bon-Ton Stores Inc., has received the National Human Relations Award from the AJC. AJC is a global Jewish advocacy organization. It honored Bufano at its 2015 Fashion Dinner on Dec. 14 in New York.
The Public Relations Society of America Southeastern Wisconsin Chapter, a trade group for public relations and communications professionals across the Milwaukee region, has named its 2016 board of directors.
Bufano received the award for demonstrating “exceptional social concern” through her efforts to lead Bon-Ton’s corporate social responsibility and community partnership programs. It was presented as a leather-bound copy of the book “Statecraft,” signed by its author, Margaret Thatcher.
The board members are: Heidi Fendos, Fendos PR, president; Sara Rude, Nelson-Schmidt, president-elect; Bill Bussler, Kohler, immediate past president; Annie Gentil, Standard Process
Bon-Ton has dual headquarters in Milwaukee and York, Pa. It operates 270 stores under the names Bon-Ton, Bergner’s, Carson’s, Elder-Beerman, Boston Store, Herberger’s and Younkers.
To have your business briefs published in a future issue of BizTimes Milwaukee send announcements to briefs@biztimes.com.
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African American Chamber of Commerce of Wisconsin
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633 W. Wisconsin Ave., Suite 603, Milwaukee 414-462-9450 | www.aaccmke.org Social media channels: Facebook and Twitter Year founded: 1993 Mission statement: To grow and sustain African American owned businesses Primary focus of your nonprofit organization: The 4 Pillars of Service 1. Access to Capital · Revolving Loan Fund · Kiva Zip Trustee 2. Advocacy · Economic Development · Public Policy · Research 3. Business Development · Professional Workshops · Industry Support Clusters · Business Fellows Program 4. Community Engagement · Building Milwaukee · Women In Business · Pipeline Connections Number of employees at this location: 3 Key donors: »» BMO Harris Bank »» Mandel Group Inc. »» Barrett Visionary Development LLC
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»» Johnson Controls Inc. »» Tri-City Bank Executive leadership: »» Dr. Eve M. Hall, president and chief executive officer Board of directors: »» Dr. Eve M. Hall, AACCW »» Jim Milner, Urban Strategies, chairman »» Clifton Phelps, JCP Construction, first vice chairman »» Shirley McFarlane, Northwestern Mutual Financial Network – The Blevons Group, second vice chairman »» Wanda Montgomery, Children’s Hospital and Health System, secretary »» Randy Crump, Prism Technical Management and Marketing Services, director »» Avery Goodrich, Jr., FW Consultants LLC, director Ways the business community can help your nonprofit: We are seeking strategic alliances and collaborations with individuals, groups and organizations across the city, county and state to develop new services and programs. Key fundraising events: African American Chamber of Commerce of Wisconsin’s First Annual CEO Breakfast Forum Tuesday, May 3, 2016 (7 - 9:30 a.m.) The Pfister Hotel 424 East Wisconsin Ave., Milwaukee
biz connections PER SO NNE L F I L E
Advertising & ■ Public Relations Boelter + Lincoln Marketing Communications added
Stephanie Schrandt
as an account supervisor. In her new role, Schrandt will work with clients such as the Door County Visitor Bureau. Zizzo Group added Tony Seaman as vice president and creative director. Seaman oversees the best creative work for ZG’s clients, as well as general creative functions of the agency. Teaming with ZG’s executive leaders, Seaman assists in developing ideas, pitching concepts and determining creative strategies for a variety of clients. In addition, he leads ZG’s team of designers and writers in the collaborative creative process. With more than 16 years of agency experience, Seaman has worked on some of Wisconsin’s most recognizable brands, including Noah’s Ark Waterpark, Marcus Corp., Bastille Days and Door County Visitor Bureau. Mueller Communications LLC recently announced that Katie Newcomb has joined the firm as a senior account executive. Her responsibilities include creating public relations plans, executing public awareness campaigns for community-based organizations, and managing a variety of internal
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teams to make projects run smoothly and cohesively. Prior to joining Mueller, Newcomb held numerous marketing and public relations positions in Milwaukee, including with the Betty Brinn Children’s Museum, Milwaukee Chamber Theatre, the Milwaukee Brewers and the Milwaukee Public Museum. In 2006, she launched her own freelance marketing company, Giving Tree Events LLC, where her business philosophy included giving a portion of all profits to local charities. Newcomb also served as a community blogger for Milwaukee Magazine from 2011-’13 and contributor to MetroParent Magazine.
■ Architecture
Gilles
Meyer Jackie Gilles has joined Eppstein Uhen Architects as a project manager in the Learning Environments Studio. Gilles has a diverse background with professional experience in K-12 learning environments, senior living and health care. She will continue specializing in K-12 design at EUA. Phil Meyer has also joined the Eppstein Uhen Architects’ Workplace Studio as project architect, relocating from Washington, D.C., to Milwaukee. Meyer has experience working with a variety of clients on a diverse range of project types.
■ Banking & Finance First Bank Financial Centre has added V.J. Scully as a mortgage lender. Scully has been
providing mortgage lending expertise to eager homebuyers for more than 20 years. His knowledge and experience with construction loans, lake home and jumbo Scully financing, and working with first time homebuyers helps his buyers make informed decisions. U.S. Bank Wealth Management appointed Jon Donahue as private banker for The Private Client Reserve of U.S. Bank in Milwaukee. In his new position, Donahue will provide personalized services and sophisticated banking strategies for clients. He will oversee specialized lending and deposit services for individuals and corporate clients, drawing on the expertise and experience of key team members and the full range of resources available through The Private Client Reserve.
■ Distribution Monroe Equipment, a heating and cooling products HVAC distributor headquartered in Menomonee Falls, announced the appointment of Joseph Scala as commercial sales and marketing manager. In his role as key contact for commercial sales, Scala will work with large mechanical contractors, construction companies, architects, engineering firms and developers to build business and business relationships, and to develop and execute marketing programs to expand
company awareness and visibility in key target markets in Wisconsin. He has a wide range of business-to-business and consumer products experience with a wide range of customers during a more than 25-year sales and marketing management career.
■ Education
Rhyner Goeman The University of Wisconsin-Milwaukee School of Continuing Education hired Paula Rhyner as the deputy to the provost for continuing education and outreach. Rhyner came to UWM in 1983, recently serving as interim dean of the College of Health Sciences, where she was also an associate dean for eight years. The UWM School of Continuing Education also recently selected Patricia Goeman as the new assistant director of College for Kids/College for Teens. Previously, Goeman ran several pre-college programs on the UWM campus, including mini-courses. She also coordinated Department of Public Instruction scholarships for UWM.
■ Legal Services The law firm of Whyte Hirschboeck Dudek S.C. recently announced that Lydia Chartre has been granted membership in the College of Community Association Lawyers, making her one of fewer than 160 attorneys nationwide to
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biz connections PER SO NNE L F I L E be admitted to the organization. Fellows of CCAL are regarded as the most respected community association attorneys in the country and are recognized for committing themselves to high standards of professional and ethical conduct. Chartre joins WHD’s Daniel Miske as the only two Wisconsin members of CCAL.
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Wojciechowski as interactive marketing specialist, Paul Aldrich as associate application developer, Ashley Remington as account coordinator and Kristin Demet as senior project manager.
■ Nonprofit Organization
■ Marketing
Howze Wojciechowski
responsibility for setting the vision and long-term strategy and communicating these outcomes to all stakeholders; and provides community advocacy and influences public policy to support the mission. Howze was PEARLS’ first program coordinator and first director of program services. PEARLS has also named Christy Miller development director, Tamara Key director of program services and Mary Robyn Peotter director of finance and operations.
■ Real Estate CBRE Inc. announced that Eric Mouton has joined the firm as an associate within its retail brokerage group based in the Milwaukee office. Mouton will be responsible for landlord and tenant representation of retail properties, as well as assist a variety of tenants with lease negotiations and site selection. Additionally, he will be part of new business development.
■ Technology
Miller
Aldrich
Remington Demet Ascedia, of Milwaukee, hired Luanne
Key Peotter PEARLS for Teen Girls Inc. appointed Gerry Howze executive director. In this leadership position, Howze advocates and promotes the organization’s mission and goals; has primary
BIZ B R I E F S
Inlanta Mortgage moves branch office to Greenfield Brookfield-based Inlanta Mortgage Inc. recently moved its Brookfield West office to Greenfield. The new Greenfield office is located at 9910 W. Layton Ave., Suite 2. Kip Warzon is the branch manager for the office. Inlanta now has 37 branches in 16 states, including 17 branch offices in Wisconsin. Besides the Greenfield office, the only other Milwaukee County location for Inlanta
Mortgage is in Hales Corners. Other Inlanta offices in southeastern Wisconsin are located in Brookfield, Burlington, Oconomowoc and Pewaukee. The firm offers Fannie Mae/Freddie Mac agency products, as well as jumbo portfolio programs. Send news tips and story ideas to www.biztimes.com/submit/news-tip-story-idea
Kriete Saeed Lutheran Home & Harwood Place named Lindsey Kriete HR and corporate director. In her new position, Kriete will be responsible for personnel and budget management and adherence to all facility policies and human resource procedures. Kriete has more than 14 years of business management, employee development and executive recruitment experience. Her past experience includes human resources manager for Fabick Cat, vice president for Core Business Solutions, and human resources and corporate director for the Kriete Group. Kriete served on the Lutheran Home Foundation board from 2014 to 2015. The Lutheran Home also added Dr. Kashif Saeed as a staff physiatrist. Saeed will diagnose and treat orthopedic neurologic and musculoskeletal conditions and address rehab and pain concerns with patients, therapy staff and family. He also serves as an associate physician for Integrated Rehab Consultants, a nationwide group of physiatrists practicing sub-acute rehabilitation.
McElroy Coker Racine-based CCB Technology added Scott McElroy to its sales team as a nonprofit account manager. In his new role, McElroy will focus on building relationships with new and existing nonprofit entities in order to deliver custom IT solutions and services to help them reach their goals. McElroy has a background in customer service. The company has also added Jason Coker as a field account executive on its sales team. Coker will concentrate on helping businesses in the financial and legal industries in the Kenosha market meet their IT needs through CCB’s services and solutions. He worked for more than 10 years in the financial industry, helping clients with large investments, in previous roles as a senior residential lender and branch partner and also as a banking, finance and wealth management recruiter.
Banking & Finance
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biz connections
n GLANCE AT YESTERYEAR VOLUME 21, NUMBER 21 JANUARY 11 - 24, 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
Dan Meyer dan.meyer@biztimes.com DIRECTOR OF OPERATIONS
Mary Ernst mary.ernst@biztimes.com ADMINISTRATIVE ASSISTANT
Sarah Sinsky sarah.sinsky@biztimes.com
SALES & MARKETING DIRECTOR OF SALES
Linda Crawford linda.crawford@biztimes.com PROJECT MANAGER
Jon Anne Willow jonanne.willow@biztimes.com MANAGER OF STRATEGIC INITIATIVES
EDITORIAL
Robert Bahillo robert.bahillo@biztimes.com
EDITOR
ACCOUNT EXECUTIVE
Andrew Weiland andrew.weiland@biztimes.com
Kevin Gaschk kevin.gaschk@biztimes.com
MANAGING EDITOR
BUSINESS DEVELOPMENT EXECUTIVE
Molly Dill molly.dill@biztimes.com REPORTER
Corrinne Hess corri.hess@biztimes.com REPORTER
Maribeth Lynch mb.lynch@biztimes.com ACCOUNT EXECUTIVE
Maggie Pinnt maggie.pinnt@biztimes.com
Arthur Thomas arthur.thomas@biztimes.com
SENIOR ACCOUNT EXECUTIVE
PRODUCTION & DESIGN
ACCOUNT EXECUTIVE
GRAPHIC DESIGNER
Christie Ubl christie.ubl@biztimes.com
Alex Schneider alex.schneider@biztimes.com
Amber Stancer amber.stancer@biztimes.com
ART DIRECTOR
Shelly Tabor shelly.tabor@biztimes.com
Federal courthouse This photo, taken circa 1935, shows the U.S. Post Office and Federal Building in downtown Milwaukee. The building, located at 517 E. Wisconsin Ave. in Milwaukee, was completed in 1899 and still serves as a U.S. District and U.S. Bankruptcy court for the Eastern District of Wisconsin. It is listed on the National Register of Historic Places. — This photo is from the Milwaukee Public Museum’s Photo Archives collection. Additional images can be viewed online at www.mpm.edu.
Independent & Locally Owned — Founded 1995 —
COMME NTA R Y
Workplaces still many years away from gender equality
W
hile workplace gender parity is on the horizon, it may not come about for 21 years, according to a survey conducted recently by Milwaukee-based ManpowerGroup, a global workforce solutions and staffing firm. That’s according to members of the millennial generation worldwide who were surveyed. A whopping 97 percent of them said they will be the first generation to achieve equality for women in the workplace. But it’s not going to happen overnight, apparently. Maybe in 2037. Ask an established male leader, on the other hand, and the playing field will be leveled closer to 14 years from now. Perhaps things look rosier from the top. After all, the report points out, 95 percent of Fortune 500 CEOs are men. 32
That really gets to the crux of the problem: a number of male leaders don’t recognize the size and depth of the disparity, or just how long it will take to even the odds. The fact is, the odds are not in women’s favor. Particularly in male-dominated industries, the patriarchal succession plan is alive and well. A culture can be a difficult thing to change, and without guidance and advocacy, it can be tough for a woman, however hardworking, to rise to the top. In total, the survey included 222 established and emerging leaders ages 28 to 59, of both genders, from 25 countries. It resulted in a report, “Seven Steps to Conscious Inclusion: A Practical Guide to Accelerating More Women into Leadership,” aimed at guiding the expected changes at a quicker pace. B i zT i m e s M i l w a u k e e
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Among the report’s insights is the acknowledgment across the board that men rule C-suites and it needs to change. That’s encouraging to hear from both sides. About 59 percent of respondents said creating a gender-neutral culture is the most important step to advancing women into leadership roles, especially if it’s coming from the CEO. And 42 percent said flexible work arrangements are key to accommodating women’s leadership. A growing number of business thought leaders are championing the flexible workplace and the potential benefits it can hold when structured properly. Instead of making sure butts are in seats, leaders could measure employees’ performance by their output, wherever and whenever it gets done. For mothers who are fulfilling the main caretaker role
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MOLLY DILL Managing editor BizTimes Milwaukee
for their children, as they so often do, this kind of arrangement could mean the difference between quitting and being promoted. Of course, this wouldn’t work in every situation, but it’s one solution offered by ManpowerGroup to take action on the ongoing problem. Other solutions offered by respondents are also worth considering. Mentorship, training, communicating about commitment and focusing on outcomes are among the top suggestions to bridge the gap. It’s time to take action on the gender inequality issue. We’ve been talking about the glass ceiling for decades – let’s not wait two more to make it right. n
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Health Care Heroes BizTimes Media recently hosted its 2015 Health Care Heroes Awards breakfast at Potawatomi Hotel & Casino in Milwaukee. The annual 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. 1
Bob Olson, Mike Ingrilli and John Hopkins, all of The Herrington-McBride Alumni Association.
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Victor Miranda of GE Healthcare.
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Anne Stern, Robert Ramerez and Julie Means of Columbia St. Mary’s.
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Carrie Fiebig, Andy Mattes, Alexa Mattes, Jane Nawrocki and Samantha Vick of Madison Medical Affiliates. Tiffany Cvikota and Beth Dolan of Children’s Hospital of Wisconsin.
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Margaret Bilicki, Betsy Evans and Elizabeth Krzwyda of the Medical College of Wisconsin.
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Co-workers, families and friends supported Health Care Heroes at the event.
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Melinda Davenport of WISN 12 News, a media partner of BizTimes Milwaukee, emceed the awards program.
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Jim Sawaya, Scott Larrivee, Paul Nobile, Christy Neuber and Amy O’Donnell of Anthem Blue Cross and Blue Shield. Photos by Paul Gaertner, White Dog Photography
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the last word What I have learned in business As co-founder of successful Milwaukee coffee chain Colectivo Coffee, Lincoln Fowler has learned a few things about how to thrive in business. Here, he shares what he’s gleaned over the years.
Failure is critical to success. “My first business failed. It taught me a number of valuable lessons, among the most important of which was the value of hard work and knowing I could work a problem to death. The second lesson was frugality. When my partners Ward and Paul and I applied for our first line of credit for Colectivo, the bankers had us fill out personal financial statements and couldn’t figure out how we lived on so little. Frugality had been burned into us.
Do your best work. “You can take frugality too far, though. When we were building our first café and the expenses were reeling out, Ward and I were getting a bit concerned. Paul sat us down and reminded us that, ‘We’re building this to be successful…not because we’re going to fail. We have to do our best work!’ We’ve tried to be true to that for the last 20 years.
Lincoln Fowler Co-founder Colectivo Coffee 2999 N. Humboldt Blvd., Milwaukee Industry: Coffee roasting and retail Employees: 500 www.colectivocoffee.com
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“There is an unofficial saying at Colectivo: ‘We’ve never met an idea we couldn’t complicate.’ Our original intent was to build a simple café, but we realized we needed to roast coffee as well to ensure freshness and quality. When the cafes needed pastries to accompany the coffee, we decided that opening a from-scratch bakery would be a great idea. When our interiors needed lights, why buy stock when you can custom make them? Outdoor furniture? Sure, let’s make that, too. It is not complication for its own sake… it keeps it interesting for our customers and our staff (and for me, too!). We want our workplace to celebrate the artisanal city it was born in … plus, all that extra attention keeps it fun.” n
ERICH SCHROEDER PHOTOGRAPHY
Complicated is fun.
GIVING GUIDE Didn’t make it in this year?
Reserve your space for the 2017 Giving Guide!
Check out the new digital edition:
biztimes.com/giving
E A S T E R
S E A L S
S O U T H E A S T
W I S C O N S I N
MISSION Easter Seals Southeast Wisconsin provides exceptional services to ensure that all people with disabilities or special needs and their families have equal opportunities to live, learn, work and play in their communities.
Connecting Individuals with Disabilities to a World of Possibilities
2222 S. 114th Street West Allis, WI 53227 (414) 449-4444 eastersealswise.com GOALS facebook.com/eastersealswise @ESSoutheastWI
To change the way the world defines, views and treats disabilities so that every person can achieve their full potential. To provide exceptional services to ensure that all people with disabilities or special needs and their families have equal opportunities to live, learn, work, play and engage in their communities.
220 REVENUE: $10,412,379 YEAR ESTABLISHED: 1934 TOTAL EMPLOYEES:
Live: Hands-on, comprehensive, vital services and support to help people reach their full potential—regardless of challenges, needs or disabilities.
SERVICE AREA Easter Seals Southeast Wisconsin serves six counties: Milwaukee, Waukesha, Washington, Ozaukee, Kenosha and Racine.
Learn: Programs designed to help children and adults learn—and often re-learn—basic functions, master skills needed to develop and thrive, and be sharp and active as they age.
FUNDING SOURCES
Work: A range of training, placement and related services that help people prepare for the workforce—because meaningful work is often the key to overcoming challenges and having a good life.
FUNDRAISING/EVENTS We hold two annual fundraising events that offer opportunities for individuals and corporations to get connected: • Walk With Me – Wednesday, June 29th at the Milwaukee County Zoo. A family event to walk together to raise funds and awareness for individuals with disabilities. Be a corporate sponsor or form a walk team. Registration begins in January at www.walkwithme.org/milwaukee • Autism Awareness Month – April. Through this cause marketing campaign, you can align your business with Easter Seals to help spread the word and raise needed funds to provide scholarships to families that are on the therapy waiting list for early intervention support services.
Play: Fun, healthy programs for children and adults and caregivers to relax, connect with friends and engage in constructive activities—all so necessary to living the best life possible.
Program Fees .................................... 62% Government Contracts ........................ 18% Commercial Sales ................................ 9% Donations ........................................... 7% Other Income ...................................... 4%
Act: Our vibrant community of friends and supporters stands with those who face challenges by volunteering, advocating, donating and participating in events that inspire us all and sustain our cause.
Dale Van Dam (Chair) ★ Peggy Niemer (Vice Chair) ★ Kenwood & Wells, LLC
Jim McMullen (Secretary) ★ PNC Bank
Nancy Creuziger (Treasurer) ★ Robert Glowacki CEO
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Michelle Schaefer COO
Easter Seals knows the personal impact your gifts make is of great importance to you. There are many ways to make a difference: Volunteer or leadership at the Board level; corporate volunteer days; tailored event sponsorships; individual gifts; in-kind gifts; or through your United Way Giving Campaign. A bequest gift allows you to combine your personal financial objectives with your charitable giving goals to establish a lasting legacy.
BOARD OF DIRECTORS M3 Insurance Solutions
Robert Ranus Retired, Roundy’s
David Glazer
David Glazer Real Estate, LLC
Bill Hughes
Sue Pierman
Pierman Communications
Daniel O’Callaghan
Harley-Davidson Motor Co.
Massage Envy
Sara Walker
Tari Emerson
2016 GIVING GUIDE | www.biztimes.com/giving
Tom Kelly
Kelmann Restoration
Jean Schramka
Patina Solutions
Roger Schaus
Associated Bank
Jeff Squire
ProHealth Care
Tom Gagliano Morgan Stanley
ManpowerGroup
Retired, Generac
Take advantage of the opportunity for your organization to be seen by the Region’s Business and Philanthropic Leaders all year long.
★ DENOTES EXECUTIVE LEADERSHIP
Frank Windt
Schenck Business Solutions
Your involvement in this annual publication includes an in-depth profile, plus several advertising elements in BizTimes Milwaukee magazine, BizTimes Nonprofit Weekly enewsletter and BizTimes.com.
GIVING OPPORTUNITIES
VOLUNTEER OPPORTUNITIES Our dedicated volunteers play an essential role in positively impacting the lives of those that we serve. We have a variety of opportunities throughout the week and weekend to fit your availability and interests. Learn how you can make a difference through volunteering at www.eastersealswise.com.
EXECUTIVE LEADERSHIP
Publication Date: November 14, 2016
www.eastersealswise.com
Charter Steel
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