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2017 EDITION
inside
February 20 - March 5, 2017 HIGHLIGHT S Coffee Break
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A conversation with Eric Tillich, president and CEO of the Wisconsin Conservatory of Music.
Political Beat
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Walker wants $649 million boost to K-12 education.
Made in Milwaukee
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Process precision helps Pindel go global.
Innovations 10 RokkinCat’s Hack & Tell sets software developers free.
Real Estate Spotlight
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Mukwonago officials say village is open for business.
S TR ATE GIE S Innovation Dan Steininger 26 Coaching Susan Marshall 27 Family Business David Borst 28
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S P E C I A L R E P O R T:
COV E R S T ORY
Wisconsin companies must cope with a SHRINKING WORKFORCE
BA NK ING & F IN A NCE 20 Coverage includes a look at different approaches when selling a business, an analysis of the growing P2P payment market and advice for business owners on asset allocation.
BIZ CONNECTIONS Biz Notes 29 Nonprofit Spotlight 29 Personnel File 30 Glance at Yesteryear 32 BizTimes Around Town 33
V I S I T B I Z T I M E S . C O M F O R A D D I T I O N A L S T O R I E S , D A I LY U P D AT E S & E - N E W S L E T T E R S Editorial . . . . . . . . . . . . 414-336-7120 Advertising . . . . . . . . . 414-336-7112 Subscriptions . . . . . . . 414-277-8181 Reprints . . . . . . . . . . . . 414-277-8181
Founded in 1995, BizTimes Milwaukee provides news and operational insights for CEOs, presidents, owners and other top level executives at companies in southeastern Wisconsin (Milwaukee, Waukesha, Ozaukee, Washington, Racine, Kenosha, Walworth and Sheboygan counties). Subscription Customer Service: BizTimes Milwaukee, 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120, USA, Phone (414) 277-8181, Fax (414) 277-8191, circulation@biztimes.com, www.biztimes.com
BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 22, Number 24, February 20 - March 5, 2017. BizTimes Milwaukee is published bi-weekly, except two consecutive weeks in December (the second and third weeks of December) by BizTimes Media LLC at 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120, USA. Basic annual subscription rate is $42.00. Single copy price is $3.25. Back issues are $5.00 each. Periodicals postage paid at Milwaukee, WI and additional mailing offices. POSTMASTER: Send all UAA to CFS. NON-POSTAL AND MILITARY FACILITIES: send address corrections to BizTimes Milwaukee, 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120. Entire contents copyright 2017 by BizTimes Media LLC. All rights reserved.
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leading edge NOW
Harley CEO promises ‘new era’ of product development
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ilwaukee-based Harley-Davidson Inc. plans to introduce 50 new motorcycles over the next five years, with president and chief executive officer Matt Levatich promising “a new era of product development.” “I’ve never been more excited about our product pipeline in my 22 years here at Harley-Davidson,” Levatich said. Harley has invested in refining its product development process over the past several years and things like Project LiveWire, Rushmore, the MilwaukeeEight engine and a new suspension system represent the leading edge of the new products to come. “If people were excited about the projects I just named, they haven’t seen anything yet,” Levatich said, although he did not get into specifics, except to say Harley would reinvent existing product segments and push into new ones. He added that the company plans to continue its efforts to attract new riders and also will seek to embrace the used motorcycle market as an opportunity to bolster those efforts. “We’re called to preserve the sport by engaging and inspiring new riders,”
Levatich said, cautioning that the ambitious goals are a long-term play that will provide value in the years to come. The company forecasted retail sales would be flat to slightly down in 2017, including the sale of 66,000 to 71,000 bikes in the first quarter. Harley shipped more than 83,000 in the first quarter of 2016. Harley entered 2016 having introduced a host of new initiatives aimed at increasing demand and drawing new people to motorcycles both internationally and in the U.S. Levatich said the company had opened 40 new dealerships internationally and trained 65,000 new riders through its rider academies. “While we made great progress, our demand-driving efforts only partially offset the impact of the down U.S. market,” he said, adding that the company’s long-term plans reflect a “new normal” for the U.S. market. Chief financial officer John Olin said the industry in the U.S. was fairly stable through May, but then began to experience a number of challenges. Olin said the company’s dealerships exited 2016 with too many model year 2016 motorcycles and Harley will help
dealers sell those models. He also said launching new products like the Milwaukee-Eight added costs in 2016, and there would be startup costs for new 2018 models that will likely hamper margins this year, as well. Harley was pleased with its performance internationally and Olin suggested those markets would become a bigger part of the mix going forward. Levatich also said the company will work to engage with the used motorcycle market more, citing company research that showed nine in 10 riders purchasing a used Harley plan to buy another from the company and 90 percent of those would consider buying new. “We have timeless, classic, durable, awesome motorcycles,” Levatich said. “The simple idea here is just to wrap our
arms around that.” The company is still working through how that embrace will be put into practice. Levatich also said the company needs to do more to convert the 65,000 riders who went through the rider academies into owners. He noted his 17-year-old son recently completed the academy and the instructor reminded the students at the end that they were qualified to ride in a parking lot. “There’s a lot more learning that has to go on to be confident,” Levatich said.
——Arthur Thomas
SOCI AL M E D I A S T R AT E GI ES
Want to build some hype for your next trade show? You can effectively hone in on your target audience without spending a ton of your marketing budget. While organic posts can help, these Facebook ad tactics will be more effective. Leading up to the event, consider promoting your booth in two ways. First, see if the trade show brand or the organization that runs the show is an available interest group you can target. Layer on the appropriate location and demographic targets to start building pre-show awareness. The second consideration is to use attendee contact information you may receive from the show ahead of time. Custom audience lists can be created in Facebook with email addresses or phone numbers. The audience size might not be big, but it will be extremely relevant, giving you the best bang for the buck. When your audience targeting is set, create ad content promoting your 4
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appearance at the show and what you’ll be showcasing. Facebook’s Local Awareness ads are my No. 1 recommendation. While the trade show is going on, you can target ads to users who are physically within a mile of the convention center by dropping a pin on the location (consider a wider radius to capture nearby hotels). Facebook advertisers can then set an ad schedule, as well as layer on more targets, like the interests discussed earlier, to make the campaign as focused as possible. Finally, create ad content to promote your booth number, showcase any swag you’re giving away or just promote why attendees need to check you out. Since you’re only running these ads for limited hours to a hyper-focused audience, you won’t break the bank promoting your booth.
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RONNACHAI PALAS / SHUTTERSTOCK, INC.
Using Facebook ads to promote trade shows
It doesn’t take a big budget to drive traffic to your booth, no matter how large the convention. Consider using Facebook ads to build awareness, both before and during your show. If you find the right audience, you could be the envy of all the other vendors around you.
——Joe Martinez is senior manager, paid media and community at Milwaukee-based Granular.
leading edge COFF E E B R E A K
POLITIC AL BEAT
Walker wants $649 million boost to K-12 education BY WISPOLITICS.COM
What attracted you to the Wisconsin Conservatory of Music? “The Conservatory has a rich tradition of serving the entire region and creating great music. I love music, and it is wonderful to be surrounded by so many terrific musicians. I was also very attracted to the Conservatory’s mission to provide the finest musical education to aspiring professional performers, as well as to children and adults who desire cultural enrichment or musical self-fulfillment. It’s a joy to see people succeed in learning their instruments and creating beautiful sounds. In addition, I love Milwaukee. I grew up in the Sherman Park neighborhood and love the unique culture here. And it’s amazing to see the progress the city has made, especially in the downtown. Milwaukee is like no other place in the country.”
What are the Conservatory’s greatest challenges? “We have some capital needs at our Prospect Avenue campus, but our biggest challenge is to allow greater growth in the number of students we serve. We’re very interested in serving a larger proportion of children who have had no experience with a musical instrument. We already serve thousands, but I’d like to see the number increase dramatically.”
Who has had the greatest influence on your career? “That would be Don Cahill. Don was a mentor, colleague and friend. He taught me how to take challenges head-on, the value of
Rolling out a key plank of his budget, Gov. Scott Walker called for a $649 million boost to K-12 education as part of a plan that would increase per-pupil funding statewide while also targeting more money to Milwaukee Public Schools and rural districts. Walker said the proposal, included in his two-year budget, is part of an overall effort to better prepare Wisconsin’s Walker workforce. He also said it would result in a property tax bill on the average home that is lower in 2018 than it was before he took office in 2011, while pushing state aid for K-12 to an all-time high of $11.5 billion. “We’re investing in our priorities, and priority No. 1 is education,” Walker said. The plan would represent a dramatic uptick in state aid for K-12 education after years of Walker getting hammered by Democrats, who have accused him of funding school choice at the expense of public schools. Assembly minority leader Peter Barca (D-Kenosha) and Senate minority leader Jennifer Shilling (D-La Crosse) knocked Walker, saying he has cut more than $1 billion from public schools since 2011. Shilling said anything “short of a full refund will continue to hurt hardworking families,” while criticizing the state aid going to vouchers. Walker said under state law, the vouchers would see a similar bump in per-pupil aid as what public schools would receive. Barca said he was still looking for details and questioned whether the plan would result in schools “struggling to keep the lights on” getting a smaller increase per student than voucher schools. “Every child in Wisconsin deserves and our economy needs quality education,” Barca said. “We need a budget to support that.” Walker’s proposal almost meets the full amount state superintendent Tony Evers had included in his budget request, though it would divvy up the money differently.
listening to donors and staff, and he gave me the ability to succeed and learn from failure. But I would say my parents had the greatest influence. They taught me how to be a straight shooter and how to remain cool in tough situations.”
What’s the most important lesson you’ve learned in your career? “I know it’s a cliché, but don’t sweat about things, big or small. If you can lead a highly competent staff, and if you’re sure of your own leadership, everything will be just fine. I think that applies to life in general, not just the nonprofit sector.”
What do you like to do in your free time? “I’m a big sports fan, from the Brewers to the Packers to the Bucks and Badgers. I always enjoy catching a game. I also referee WIAA basketball games; you can find me on the basketball court at least twice a week. I also love to watch my favorite basketball player – my son, Jackson Tillich.”
What is the best advice you could give someone working in the nonprofit field? “Fall in love with the mission of your organization. You have to believe in the organization you’re working for in order to be successful. You really have to love it and be excited about it or you won’t get other people to share that enthusiasm.”
Eric Tillich President and CEO Wisconsin Conservatory of Music 1584 N. Prospect Ave., Milwaukee Website: www.wcmusic.org Industry: Music and education Employees: 18 full-time, 65 part-time Family: Terri (wife), Julia (daughter), Jackson (son) w w w.biztimes.com
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Wispolitics.com is a media partner of BizTimes Milwaukee.
BY TH E NU MBERS
Racine-based S.C. Johnson & Son Inc. and its chief executive officer, Fisk Johnson, recently donated a combined total of $150 million to Cornell University in Ithaca, New York.
“I want to be surrounded by excellence, and I’m driven by the idea that the right people can bring success to any organization.” F ebr ua r y 2 0 - M a r ch 5, 2 017
$150 million
What drives you to succeed?
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leading edge ON TH E C ALEN D AR
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Voices of Leadership Pindel Global Precision 2505 S. 170th St., New Berlin Industry: Precision machined components Employees: 75 www.pindel.com
This part used to be produced with four operations at Pindel and another manufacturer. It’s now completed in just one operation.
Process precision helps Pindel go global Pindel Global Precision was known for years as A.S. Pindel Corp., until the company rebranded at the start of this year to communicate its international ambitions. “One of the beautiful things about the kind of parts that we make is that they’re very shippable, so really the globe is our opportunity set,” said Bill Berrien, chief executive officer at Pindel. Berrien acquired Pindel in 2012, but Mark Pindel, the former owner, stayed on as president. The New Berlin-based company operates from a 40,000-square-foot plant just
ARTHUR THOMAS (414) 336-7123 | Twitter: @arthur8823 arthur.thomas@biztimes.com
south of West Lincoln Avenue. Berrien said the firm provides complex machined parts at medium volume for a variety of markets, including hydraulics, motion controls, industrial controls, automation, power distribution, heat transfer, firearms, some recreational markets and some light trucks. The company also is looking to launch a sales team in Mexico with the goal of bringing some precision-related work back to Wisconsin. “There are other folks, here, globally, that supply a more basic part; we like the ones with a little bit of challenge to them,” Berrien said. Pindel focuses on parts with multiple features, close tolerances and other unique challenges. While the company will partner with customers on design for manufacturability, much of Pindel’s engineering focuses on how to produce parts internally. “We like the opportunities of a high-mix environment. What we want to try to optimize is switchovers between
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the runs that need to be done,” Berrien said. Historically, the company produced parts through multiple machining processes, but new investments in advanced CNC and CNC Swiss machines cut down on the number of steps. “If you can get (parts) coming off complete in the machines, it’s really a game-changer,” Berrien said. Berrien’s history doesn’t immediately suggest he would own and run a precision machine shop. He spent nine years as a Navy SEAL before joining GE Healthcare. He left GE and became chief operating officer at a friend’s startup that set up dialysis clinics. His next stop was Milwaukee investment management firm Artisan Partners, before he decided to use the proceeds from his startup equity to buy a company of his own. But Berrien said he does see a lot of similarity between his time in the Navy SEALs and running the company, particularly when it comes to elements of leadership in smaller organizations. He said in both cases, he’s relying on people who are deeply experienced in different areas. “People need to have the ability to contribute based on their experience and their insights and it’s definitely not topdown directed,” he said. Berrien described Pindel’s organizational structure as a series of concentric circles with the production team at the core and other functions supporting the team and removing obstacles. “They’re the ones creating the most direct value in solving the customer problems,” he said. To rely on the production team means Pindel needs to have the right staff in place. “Without a doubt, it is a talent business so the burden is on us to identify, recruit, train and retain skill. And skill that wants to stay here, skill that wants to grow with us,” Berrien said. Pindel tries to do its part in preparing future manufacturing talent for the region. The company was named a friend of education by the School District of New Berlin, routinely hosts two or three GPS Education Partners students, has part-time positions for high school students and offers internships to engineering students from state universities.
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The Voices of Leadership breakfast event will be held at Mount Mary University on Tuesday, March 28, from 7:30 to 10 a.m. The featured speaker will be Shiza Shahid, co-founder of The Malala Fund, who led a global campaign tapping into the power of Malala Yousafzai’s courage to stand up to the Taliban. She will present on the topic of overcoming fear and developing courage to lead change, followed by a Q&A session. Tickets are $35 each, and can be purchased online or at the door. For more information, visit http://bit.ly/2jDMBjO.
For a complete listing of all area events, visit the event section of our website.
www.biztimes.com/events
BOOK REVIEW
‘Playing Through the Fence’ Milwaukee business executive Mary Dowell has released a book featuring the stories of 19 women, including 17 from the Milwaukee area, who challenged barriers on their path to success. The book, “Playing Through the Fence,” is part memoir and part selfhelp guide for emerging leaders or anyone facing inspiration on his or her career journey. Dowell, who retired from Johnson Controls in 1996 as director of corporate human resources, shares her own story and the stories of others, including Milwaukee business leaders like Cristy Garcia-Thomas, Maria Monreal-Cameron and Tina Chang. The “fence” is a metaphor for the barriers each of the women has faced and how the struggle meets opportunity. The stories are snapshots of times they chose a path of opportunity, reminding the reader she is not alone. “Playing Through the Fence” is available at www.800ceoread.com for $15.16.
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leading edge NON P RO F IT N E W S
THE GOOD LIFE
Greater Milwaukee Foundation gives out record $60 million The Greater Milwaukee Foundation gave out $60 million in grants in 2016, shattering the foundation’s previous grantmaking record of $44.9 million set in 2015. Here’s how the grant money was awarded: »» Community development: $21.46 million »» Education: $8.27 million »» Human services: $6.46 million »» Health: $6.39 million »» Arts and culture: $5.46 million »» Environment: $4.27 million »» Child/youth/family: $2.47 million »» Employment and training: $1.62 million »» Other: $3.72 million Prior to 2015, the largest grant total the GMF had reached in a given year was $39 million in 2013. More than 87 percent of the $60 million in grants awarded by the GMF in 2016 was issued through donor-advised funds and other mechanisms that rely on donor recommendations.
When Lindsey Kriete is off the clock, she’s on the stopwatch. For years, Kriete, vice president of human resources for Lutheran Home & Hardwood Place senior living facility in Wauwatosa, has been competing in several sports. Her list of hobbies includes running, swimming, biking, alpine skiing and — ever since she moved back to Wisconsin in 2002 — cross-country skiing. “I suppose I just had some natural talents in the area, and turned it into quite a lifestyle for myself,” Kriete said, laughing. Though she grew up in Wisconsin, Kriete moved to Vermont for college and lived there for years before moving back to the Dairy State. She was a runner in college and had a background in competitive sports. Once she got started on her career in human resources, she wanted to maintain an athletic outlet to relieve stress and keep her motivated. First, she started running competitively. Then, she moved on to triathlons. She soon made it to the Ironman World Championship in Hawaii – which for most people is a lifetime goal – and thought to herself: What next? Now, Kriete primarily splits her time between training for the American Birkebeiner – which is held annually in Wisconsin and is one of the world’s premier cross-country skiing events – and captaining the Hollander/Benelux women’s competitive cycling team. That is, when she’s not working her 40- to 50-hour-per-week job or volunteering with Canine
Kriete (third from right) poses with fellow competitors in the American Birkebeiner cross-country ski race.
Cupids, a West Allis-based dog rescue organization. “I think I have a pretty demanding job and my bike rides or skis are absolutely my time to decompress and think about things and process things and plan,” Kriete said. “I think I live a pretty efficient lifestyle. One thing people definitely tease me for is I don’t watch TV. I don’t have one at my house and I don’t watch it ever. That’s a lot of extra time I have that I can focus on other things. I work really hard, work out really hard and spend a lot of time with my foster dogs. I have a very, very full schedule. That’s for sure.”
——Ben Stanley
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——Ben Stanley
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leading edge G ET T I NG TH E R E
BR EA K ING G ROUN D
Anisha Jambhekar, DVM Wisconsin Veterinary Referral Center 360 Bluemound Road, Waukesha (other locations in Grafton and Racine) Age: 29 Education: Bachelor’s in biomedical sciences, Texas A&M University; doctor of veterinary medicine, Texas A&M; rotating small animal medicine/surgery internship, completed June 2013, Louisiana State University; small animal internal medicine residency, completed July 2016, University of Illinois at Urbana-Champaign New position: Internal medicine specialist as of August 2016
»» What is your average day like? “My average day is busy. In the mornings, we go over cases with the overnight doctors just to go over care to make sure we’re all on the same page. From 9 a.m. to 3 p.m., I’m taking in new appointments (and re-check appointments) and assessing them. Usually, we’ll do endoscopies as well.” »» Do you have mentors? “I don’t really have formal mentorship, but I work closely with the other internal medicine specialists who have been here for a couple years. They’ll guide me with procedures that I’m a little newer at or guide me with cases. It’s a really supportive environment.”
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Froedtert Hospital expansion Froedtert Hospital is planning a four-floor expansion on top of its 12-story, 613,000-square-foot Center for Advanced Care in Wauwatosa. The new floors would add about 165,000 square feet of space to the center, which opened in October 2015. Project plans are being reviewed by the Wauwatosa Design Review Board. If approved, construction would begin this spring.
——Ben Stanley
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ON LIN E POLL
Re: Tax incremental financing “TIF is one of the most important, and in many cases the only, tool local municipalities have to directly engage in economic development.” - Jim Villa, NAIOP Wisconsin
Re: President Donald Trump and the media “If they start taking more hits from President Trump and a running war really ensues, I am on the side of the reporters. I’ll get a far straighter story from them than him.” - John Torinus, Serigraph Inc.
Re: Occupational licenses “If so many experts agree over-regulation is costing the economy and making it harder for entrepreneurs to start businesses, why are there so many licensure requirements in place?” - Tom Still, Wisconsin Technology Council
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BMO Harris Bank’s 200 Fountain visited the BMO Harris Bradley Center to celebrate the company’s bicentennial.
MAY 24, 2017 POTAWATOMI HOTEL & CASINO PRESENTED BY:
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What is the most important project to revitalize West Wisconsin Avenue in downtown Milwaukee? Redevelopment of the Shops of Grand Avenue.
44%
Transformation of Warner Grand Theatre into home of Milwaukee Symphony Orchestra.
21%
Hotel development for the Fourth and Wisconsin site. Expansion of the Wisconsin Center.
19% 16%
Expand your perspectives. Optimize your decisions. Exchange ideas with other CEOs and business leaders. See renowned speaker and author Patrick Lencioni address the untapped advantage of organizational health. He’ll dive into the 4 steps to achieving long-term success with a special focus on executive team cohesion and alignment.
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innovations RokkinCat’s Hack & Tell sets software developers free
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ne by one, the presenters got up in front of the crowd gathered in the Ward4 space in Milwaukee. They discussed what they accomplished during the day; some worked on their own versions of chess, others on software development tools, others on projects related to their day jobs. ARTHUR THOMAS (414) 336-7123 arthur.thomas@biztimes.com Twitter: @arthur8823
More than 90 people showed up on a recent Saturday for the latest Hack & Tell, an event aimed at helping to increase the
level of comfort between Milwaukee’s software developers and the city’s startups. The event is produced quarterly by RokkinCat, a Milwaukee startup that serves as a technology partner for businesses, and the focus of Hack & Tell is on spending the day building something, not on whether there is a business model behind the idea. Nick Gartmann, one of the company’s founding partners, said he’d gone to other hackathon events where the focus was on a particular technology or on the business plan. The result was often an event at which there were 60 to 70 entrepreneurs, a few designers and maybe 10 to 15 programmers. “It made it very difficult for anybody
to build a product or a prototype,” he said. The typical ratio of entrepreneurs to software developers also made programmers more hesitant to come to similar events in the future. “Showing up and getting swarmed by 60 entrepreneurs who were looking for a developer was kind of intimidating,” Gartmann said. RokkinCat has been running Hack & Tells over the past two years with a focus on people building things. Participants own the intellectual property for anything they build, there are no restrictions on what the project involves and the prizes at the end of the day are mostly low-value items. Gartmann said the last two years have
been about building trust for the event within the developer community. Starting with the first event this year, the company
Bold Leaders. Bright Ideas. Apply Today. It is time to nominate for the
13th annual Bravo!/I.Q. awards!
Ideal Bravo! Entrepreneur nominees are individuals who demonstrate the best traits of entrepreneurship, including willingness to take risk, drive, perseverance, and more! Ideal I.Q. (innovation quotient) nominees are companies who develop innovative products or services, or those with notably unique and innovative processes, operational structures and/or market strategies.
To submit your nomination visit www.biztimes.com/bravo Past Bravo! lifetime achievement award winners have included: George and Julie Mosher, Gary Grunau, Michael Cudahy, Sheldon Lubar, Fritz and Debra Usinger, Stephen Marcus, George Dalton, Robert Kern, Joseph Zibler & Harry Quadracci Past IQ award winners have included: Agro-Biosciences Inc., Astronautics Corp. of America, Brew City Promotions Inc., Briggs & Stratton Corp., Connected Technology Solutions, Fiserv Inc., Millennium Forms LLC, PKWARE, Seiva Technologies, Wellntel Inc. Presented By:
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of Growing Businesses
Forecasting Economic Trends Plan for growth and improve your odds in uncertain times
Wednesday, March 8, 2017
Harley Davidson Museum - 500 W. Canal St. | 7:30 -10 AM
Hack & Tell attendees present a game that alters the rules of chess.
sought to add more sponsors and has brought on a number of them, including Wantable, gener8tor, Bright Cellars, Ward4 and GitHub. The goal is also to make the events a better place for software developers and startups to interact, Gartmann said. “There’s a stigma in the Midwest about working for a startup,” said Gartmann, noting that most developers are more interested in working at a larger company and startups have to compete with the job benefits those bigger companies can offer. The idea is for Hack & Tell to be a place where people can meet and work on what interests them. An attendee once built a web store for his wife’s jewelry business. Others have come to learn to code, taking advantage of the chance to ask programmers for advice. People have done video animations, written songs, worked on screenplays and even quilted. Some people continue to work on the same projects each time, allowing attendees to see their growth. Casey Sobrilsky, IT director at Wantable, attended his first Hack & Tell in January and said he was somewhat surprised by the number of non-technology projects. He came to the event with a specific purpose – working on an application to help Wantable track packages. It worked well for him because it helped create an eight-hour window in which he could sit down and code. “I like that it doesn’t have to be like
RokkinCat Milwaukee Innovation: Software developerfocused hackathon www.rokkincat.com
that,” he said, referring to Hack & Tell’s open-ended approach to projects; people can come to learn something new or improve. He also said it was a benefit for Wantable that he could stand up in front of a room full of software developers and tell them about what the company does. “We have a really hard time finding developers because we’re using platforms that aren’t super common to the area,” he said. Sobrilsky brought most of his team from Wantable and they came away with some new ideas of how to address challenges. January’s event was the best-attended Hack & Tell to date. Gartmann said more than 120 people signed up for the event, blowing away the previous high of 88. The hope is to continue using the events to build comfort, collaboration and community among Milwaukee software developers. Gartmann said the team that started RokkinCat has a very entrepreneurial focus and Hack & Tell is one way of contributing to the city’s startup scene. “From our perspective, there’s just not enough people starting things to have a healthy ecosystem,” Gartmann said. n w w w.biztimes.com
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Featuring Brian Beaulieu, CEO of ITR Economics Gain a competitive edge by understanding what comes next. Hear from one of the country’s most informed economists - Brian Beaulieu – who will dissect major economic trends and indicators so you can capitalize on opportunities and avoid pitfalls. His team has a long-term 94.7% accuracy rating when forecasting economic events. The discussion will include: • 2017 – What does the short game look like? • Economics of the coming labor shortage • Changes for China and Europe and the impact on the U.S. • Indicators that spell a great depression for 2030 • What WI business can expect and which trends to capitalize on Member: $97 Non-Member: $127 Table of 10: $900 Fee includes parking and breakfast
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real estate Mukwonago officials say village is open for business oping to take advantage of its prime location along I-43 and Highway 83, the Village of Mukwonago has set its sights on more industrial development and an overall growth plan that welcomes business. It seems like a simple enough strategy: invite business to the community; but Mukwonago officials say the tactic has not always been commonplace in the oncesleepy village. CORRINNE HESS P: (414) 336-7116 E: corri.hess@biztimes.com Twitter: @CorriHess
The change began about six years ago, when 40-year police veteran Fred Winchowky was elected village president. Prior to the election, Winchowky attended dozens of municipal meetings over the 11 years he served as Mukwonago’s police chief. And he didn’t like what he saw. “When developers came here, they were not greeted properly,” Winchowky said. “Different barriers were put up. We’ve eliminated much of the restrictions. Now we give (developers) ideas about how projects can work better.” One of the first orders of business was negotiating a land purchase with the Dick Greenwald family for a 10-acre parcel southwest of Highway 83 and East Wolf Run that resulted in the relocation of Gearbox Express. The Mukwonago-based manufacturer rebuilds gearboxes for wind turbines. It moved from a 43,000-square-foot building at 909 Perkins Drive to a new 75,000-square-foot industrial building on the Greenwald site in 2015. Mukwonago officials are hoping the entire 40-acre site becomes a full-fledged industrial park; however, the rest of the land is still owned by the Greenwald family. In the meantime, the village is in the process of acquiring another piece of land, known as the Sugden property. The 115-acre parcel, less than a mile south of where Gearbox is located, could become 12
the site of a light industrial business park that will be marketed to end users, said Steve Anderson, president and chief executive officer of Greenfieldbased Anderson Commercial Group, which has been working for the village for about two years to market key sites. A third property, a more than 250-acre farm owned by the Schuett family, connects the Greenwald and Sugden pieces. The village has made it clear that if the Schuett family is ever in the market to sell, the village is in the market to purchase, said John Weidl, village administrator. “We’ve met with the family, but we also don’t want to change anyone’s plans,” Weidl said. “They can farm until the end of time; however, if at some point there is an opportunity, we have made our intent clear.” At the end of November, the village adopted an updated comprehensive plan that will carry the municipality through 2035. It focuses on
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A map of the Village of Mukwonago and the development projects currently planned or underway. B i zT i m e s M i l w a u k e e
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continuing its recent momentum, but also on revitalizing its downtown and vacant buildings while attracting more jobs to the community. “We’ve broken down the barriers, we’ve put the policies into place and now we want to be partners with business,” Weidl said. In addition to the planned industrial park, there are several other parcels on which the village is focused. An unnamed development group is planning a retail development on 16 acres at the intersection of Highway 83 and the newly built Chapman Farms Boulevard, across from Kwik Trip on the north side of the village. The village owns 6 acres of land and the Chapman family owns the remaining 10 adjacent acres. An undisclosed medical office user has been identified for 3 acres, Weidl said. Anderson said there is room on the site for an additional 25,000 square feet of retail and restaurant space. “It will definitely cap off the north end of town,” Anderson said. “There are a
lot of good things going on over there already with the Culver’s and the Kwik Trip, but it is in need of some new restaurants and retail.” Another major development planned is on a 4.5-acre site owned by the village along Phantom Lake, where the Lynch car dealership was formerly located. Four developers have submitted plans for a mixed-use development at the site, with up to 90 apartments or condominiums and up to 10,000 square feet of commercial space proposed. Weidl is hoping to have the village board review the proposals by the end of the month and choose a plan by March. “We’re looking for this project to be the crown jewel of the village,” Weidl said. “This is our first entrance into the realm of really having an active hand in our own economic development and we’re very conscious of the shift in mentality here. We are looking forward to a development that the entire community can be proud of.” Adjacent to the 115-acre Sugden par-
cel is another 100 acres of land, just north of Highway 83, that is under contract with a development group for big box retail, according to Anderson Commercial Group. Anderson Commercial also has 105 acres adjacent to ProHealth Care’s Mukwonago clinic at 240 Maple Ave., currently under contract for development. Anderson believes the village’s pro-
active attitude and geography will make it successful in its pursuit of more retail, housing and industrial. “The market is definitely heating up as far as development users across the board and industrial is going to be the next hot area,” Anderson said. “Mukwonago is a great community and they are hitting it at the right time.” n
biz news Wisconsin solar industry jobs up 45% since 2015 Wisconsin’s solar industry employs 2,813 workers across installation, manufacturing, sales and distribution, project development, and related sector employment, according to The Solar Foundation, which released the national and state-by-state results of its annual “Solar Jobs Census.” The Census reported 45 percent growth in Wisconsin solar jobs over 2015 numbers (1,941 jobs), after showing little growth between 2014 and 2015.
Nationally, the industry saw 25 percent growth in solar jobs last year, with more than 260,000 Americans now working in the solar sector, up from 208,859 in 2015. It was the fourth consecutive year with more than 20 percent growth. Wisconsin’s rankings among all states were largely unchanged. Wisconsin placed 26th nationally for both the number of solar jobs in the state (same as 2015), and 26th nationally in solar jobs per capita (up one spot from 27th last year).
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cover story
WISCONSIN COMPANIES MUST COPE WITH A
SHRINKING WORKFORCE
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BY ARTHUR THOMAS, staff writer
MAGINE IF YOU LOOKED UP ONE DAY and a quarter of the employees at your company were suddenly gone. They weren’t laid off and the business was still in good shape financially, but one of every four workers was no longer on the staff. How would that change the way work gets done? How would you keep up with demand? How long would the business remain healthy? Businesses in almost every industry across Wisconsin are facing the possibility of losing large numbers of employees to retirement in the coming years and in many cases, the departures have already started. More than 23 percent of the state’s workforce is older than 55, a figure that’s more than doubled in the past 20 years and reaches as high as 30 percent in some sectors. The departure of that many people from the workforce will create plenty of challenges for employers as they seek to find their next generation of talent. At the same time, technology continues to place greater demands on the required skill levels of those workers. The conversation around workforce has been shifting from just building up the state’s current labor pool to now also attracting new talent to the state. Tricia Braun, chief operating officer of the Wisconsin Economic Development Corp., said there’s been growing demand in the economic development community to address talent attraction at a state level. Department of Workforce Development secretary Ray Allen put it a little differently. “Workforce is the new economic development,” he said. Buckley Brinkman, executive director and CEO of the Wisconsin Center for Manufacturing and Productivity, said the optimistic forecast is for the state workforce to be flat over the next 15 years, while the pessimistic version shows it could be down by 40 percent. Either way, there are examples of companies turning away work because they don’t have the workforce they need, Brinkman said. “That might be fine for an individual company, but when you start adding those companies together, you have an economy that’s not growing,” he said. There are plenty of efforts to bring more people into the workforce, whether they’re convicted criminals reentering society after serving their sentences, individuals with disabilities or people from high unemployment areas. However, “we can bring all those people into the workforce and the arithmetic still doesn’t work,” Brinkman said. He’s also skeptical efforts to attract more residents to the state will be enough. “You’re bucking a North versus South trend we’ve been losing since the invention of air conditioners,” Brinkman said. Brinkman sees investments in new technology as
the way for manufacturers in particular to overcome their workforce challenges. But he’s concerned that many small and medium manufacturers aren’t making those investments. At the same time, businesses and local organizations are doing the best they can to attract new employees and retain the ones they have. That means engaging with the community, partnering with schools, offering unique perks, opening satellite offices, utilizing remote work, providing flexible scheduling and leveraging technology.
PREPARING FOR THE FUTURE The looming demographic challenges were among the main reasons organizations in Sheboygan County launched the “Someplace Better” campaign, said Dane Checolinski, director of the Sheboygan County Economic Development Corp. The campaign aims to attract more people to live and work in Sheboygan County. It deliberately plays up opportunities in the area, like quality schools and outdoor recreation, while downplaying ideas of a rural or wintry location. Checolinski said the feedback has been positive in the first year of Someplace Better. Most of the traffic on the campaign’s website goes to the job board, which he said gets more than 100 hits per day, with about 40 percent from outside the county. Sheboygan County is emblematic of the looming workforce challenges. The proportion of its workforce older than 55 is slightly higher than the state as a whole; it
stay ahead of that as much as we can,” she said. The company is working with technical colleges and high schools to make sure training is aligned with company needs. It also opened new offices in Milwaukee and Chicago to expand the pool of administrative and professional talent. “Not everybody needs to be here (in Kohler) all the time,” she said. Kohler already had some flexible work arrangements, but 2016 marked the implementation of an actual policy related to those situations. It came with guidance and training for managers on dealing with remote employees. Zinkel said whether someone is successful in that environment often comes down to communication and their results. Just a few miles away from Kohler, at Acuity Insurance, the solution to today’s workforce needs began almost accidentally 18 years ago by supporting a spelling bee. Besides generating goodwill in the community, sponsoring events like spelling bees, chess tournaments, math competitions and Junior Achievement gives the company a chance to expose students to the world of insurance and Acuity itself, said Ben Salzmann, president and CEO of Acuity. “We want the kids coming here when they’re in the second grade, third grade, fourth grade (and so on),” he said. Salzmann said about a year-and-a-half ago, a young woman was interviewing for a job at Acuity. Asked why she wanted to work there, she pulled out a T-shirt from an Acuity-sponsored spelling bee and described how the
“You’re bucking a North versus South trend we’ve been losing since the invention of air conditioners.” — Buckley Brinkman, Wisconsin Center for Manufacturing and Productivity had an unemployment rate of 3.1 percent in December; and major employers like Acuity Insurance and Kohler Co. have been growing. Sheboygan-area companies have been investing resources into the education system, raising millions for new manufacturing and engineering education space at the Sheboygan high schools and providing training opportunities for students. Checolinski said the number of youth apprenticeship participants has gone from around 30 five years ago to nearly 130 today. Cassie Zinkel, senior manager of talent sourcing at Kohler, said looking at staffing needs over the next year is a weekly conversation for the company’s recruiting teams. “We’re really taking a proactive approach in trying to
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event helped to shape her interests along the way. “Now we have this pipeline where we have these people coming in,” Salzmann said. “You show up at a college campus, it’s too late.” That doesn’t mean Acuity doesn’t recruit on college campuses. The insurer recently piloted a program in which one of its fleet vehicles was wrapped in its latest ad campaign and sent to a handful of Wisconsin campuses. The team cooked bacon to draw the attention of students and then guaranteed anyone who submitted a resume a phone interview. Acuity has been doing plenty of hiring, adding roughly 700 new people in the past five years, many of them new college graduates. Salzmann believes starting
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cover story the demands on the health care system. George Quinn, executive director of the Wisconsin Council on Medical Education and Workforce, said telemedicine will help leverage limited resources for physicians in all specialties, while efficiency gained through consumer use of e-health, changes in workflow and increased use of remote care are expected to moderate the demand for physician services and ease the expected shortage. Quinn said the rising use of technology means physicians need to be more adept at using it. Medical schools and residency programs already are incorporating technology throughout their curriculum. It helps that the youngest generations have grown up with technology.
3 4
IMPROVING ATTRACTION AND RETENTION
1 2 1 Acuity installed a climbing wall in its Sheboygan headquarters as a perk to help with employee retention. 2 A Ferris wheel in Acutiy’s headquarters serves as a memorable feature for students visiting the company and for community groups holding fundraisers. 3 Pingpong tables are among the amenities at Acuity’s headquarters. 4 Acuity employees have access to a workout room at the company headquarters.
with increased community involvement almost two decades ago helped the company find enough talent. Salzmann noted the insurance industry has particularly stringent job requirements, with the need for licensed accountants, actuaries and high-level computer programmers. “There are unforgiving skill requirements we have to have,” he said, adding that technology has driven the skill requirements of the industry higher. At the same time, Salzmann said experts expect half of the insurance industry to retire in the next five to 10 years. “We can’t hire experienced insurance people; they ain’t there,” he said. Instead, the company has to turn to new graduates and so far, has been able to fill its needs mostly from within Wisconsin. “There is a real talent drain out of the state, so we’re always competing to keep 16
people in Wisconsin,” Salzmann said. Just as Acuity is reaching out to the state’s universities, Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association, said community banks are increasing their outreach to technical colleges and four-year schools to find talent. Like many industries, technology has changed the way banking is done. But unlike manufacturing, where workforce challenges and productivity pressures have pushed the adoption of new technologies, banking has seen consumer preferences and new technologies drive workforce changes. Options like remote deposit for both businesses and consumers mean fewer tellers working behind the counter. Backroom operations have changed, too, shifting away from employees processing checks to automation. “It’s changing the mix of employees B i zT i m e s M i l w a u k e e
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that we have,” said Oswald Poels, noting banks have had to staff up in areas like compliance and information technology. But there’s still a need for banks to serve as counselors to their customers and that means “technology cannot replace every human position.” “It’s very much a trusted relationship that bankers have with their customers,” she said. “We still are very much a servicefocused business.” Keeping that service focus means having the right people in place, and Oswald Poels said there are concerns about finding talent in the future. Like banking, technology is changing the workforce needs of the health care industry. Advances in technology have made outpatient procedures out of conditions that used to require an inpatient stay, said Eric Borgerding, president and CEO of the Wisconsin Hospital Association. The aging population provides an additional burden on the health care industry in the state. It not only takes away from the health care workforce, more than one-third of Wisconsin nurses are over the age of 55–it also also adds to
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Keeping students and residents in Wisconsin is a challenge for the entire state, not just one company or industry. Between 2005 and 2015, Wisconsin experienced a net loss of more than 61,000 residents to other states, according to U.S. Census Bureau estimates. Wisconsin’s top net loss states from 2005-’15 include Florida, Arizona, Texas and Georgia. Wisconsin had a net loss of more than 100,000 residents to those states over that time. Retaining residents in Wisconsin and attracting new ones is at the center of the new “Think. Make. Happen.” initiative launched by the WEDC. “Even if we retained every single person … we would still need to recruit,” Braun said. WEDC surveys show Wisconsin needs to change perceptions about opportunities available in the state. “The low-hanging fruit is obviously the Midwest population centers,” Braun said, noting those areas share a number of industries and a similar work ethic. The agency’s research found 49 percent of millennials in surrounding states would consider moving to Wisconsin. She also said the state could tap into the alumni networks of its universities and specific companies know there are areas with surplus talent they can target. The initiative is still gathering partners from around the state and one of the early findings is people don’t want the state to hide from its history in agriculture and manufacturing. “If we are going to be successful with this, we have to be honest with who we are
and we don’t want to shy away from it,” she said. “But we’re also a place where innovation happens every day.” Braun noted the hard work of actually recruiting new residents is still to come and there will be competition. “We’re not the only state having this challenge,” she said. If Midwest population centers are the target, there’s already plenty of migration happening between Wisconsin and states like Illinois and Minnesota. Wisconsin had a net gain of more than 99,600 residents from Illinois between 2005 and 2015. Migration to and from Minnesota and Wisconsin essentially balanced out over that period, but an estimated 392,000 made the move one way or the other. Braun and others say the state’s universities represent one of the best vehicles for attracting new residents. University of Wisconsin-Milwaukee chancellor Mark Mone and Mike Knetter, chief executive officer of the University of Wisconsin Foundation, both said recruitment of students is important at their schools as the number of high school graduates in Wisconsin declines. “We have put additional resources into recruitment,” Mone said, noting some of those resources are specifically targeted in Illinois “because their education system is so challenged right now.” About 90 percent of UWM’s students are Wisconsin residents, while 5 percent are international and 5 percent come from other states, primarily in the Midwest. Mone doesn’t see UWM reaching a point where 20 or 25 percent of students are from out of state, but there are growth opportunities. At UW-Madison, about two-thirds of the undergraduates are from Wiscon-
5 5 Kohler Co. and other Sheboygan County manufacturers have invested millions in high school and technical college facilities to help prepare their future workforce. 6 Kohler Co. expects its manufacturing process will continue to incorporate more advanced machines and robotics, resulting in the need for a higher skill level among employees.
sin. Knetter said the university recently launched a program called Wisconsin PRIME, which targets state high school seniors through personalized outreach by the chancellor, deans and faculty. Whether they’re from the state or not, once students are at a Wisconsin university, their chances of staying are increased if they connect with Wisconsin companies through internships. Allen said the DWD is working on the development of an internship portal, similar to the Job Center of Wisconsin, where students can see internship opportunities and upload their resumes. Knetter said about 70 percent of the internships UW students complete are with Wisconsin companies. Mone, who was in charge of internship placements when he was in the business school, said it is important to get
students into the world 6 of work “as soon as they can.” He also stressed the role of partnerships with companies like Snap-on Inc., GE Healthcare, Rockwell Automation Inc. and Johnson Controls International PLC on new products or other research. “Those partnerships provide students with the opportunities to see how innovation makes such a difference,” he said. Partnerships between industry and education aren’t just happening at the university level – they’ve also played an important role at technical colleges and in the K-12 system. Allen said the majority of businesses “fully understand” the need to be involved in shaping the state’s future workforce. DWD and the state have had great part-
ners in the Wisconsin Manufacturers & Commerce and local chambers, he said. “From our standpoint, the private sector has engaged with us in a very collaborative effort,” Allen said.
PARTNERING WITH EDUCATION One executive who has been particularly involved in collaborating with the education system is Eric Isbister, CEO of Mequon-based metal fabricator GenMet. Even though the skills gap has been a frequent point of discussion at manufacturing events for years, he said there still is a need for more involvement throughout the industry.
Wisconsin state-to-state migration 2005 - 2015
+ + + + + + + + + + +
SOURCE: U.S. CENSUS BUREAU
- - - - - - - - - - -
Minnesota
INTO WISCONSIN 1 Illinois 2 Michigan
Indiana
-61,449
5,218 net gain 2,969 net gain
4 Ohio
2,633 net gain 2,425 net gain
-7,743
Wisconsin
99,659 net gain
3 Puerto Rico 5 New York
717
(net gain)
(net loss)
(net loss)
Iowa
-2,368 (net loss)
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OUT OF WISCONSIN 47 Colorado
-14,786 net loss
48 Georgia
-16,868 net loss
49 Texas
-22,319 net loss
50 Arizona
-27,131 net loss
51 Florida
-33,976 net loss 17
cover story “Quite frankly and bluntly, if manufacturers don’t get off their ass and start talking to young people and getting young people excited about going into this, then it’s not going to happen,” he said. “Manufacturing is going to happen and if we don’t do it, somebody else will.” Along with his wife, Mary (the company’s president), Isbister has been among the most vocal advocates raising awareness about the skills gap and exposing middle and high school students to careers in manufacturing. For Eric, it started by looking at a graph of the age of his workforce. He could see the wave of retirements coming. The retirements are now becoming reality, evidenced by the company uniforms hanging on the wall at GenMet like retired jersey numbers hanging from the rafters of an arena. Knowing the demographic shift was coming helped push Isbister to get involved with schools. More than 2,220 students have toured his facility, scrap material often is sent to high schools for
Distribution of Wisconsin workforce Comparing the age distribution of Wisconsin workers in 1996 and 2016.
SOURCE: U.S. CENSUS BUREAU
students to use, employees know they’re expected to be ambassadors for the industry and the company fabricates studentdesigned parts for robotics competitions. Isbister planned to attend three career fairs in February and part of his message
to students was the number of careers available to them in manufacturing, noting the need for engineers and IT professionals. He’ll often ask a group of students how many like shopping; when many of the girls raise their hands, he points out he
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has someone on staff in charge of millions of dollars in purchases every year. He also points out all six of the manufacturers on his street off Donges Bay Road have the same talent needs. As a metal fabricator, GenMet faces plenty of competition from others in the region. That competition means prices are pretty close and lead times become a determining factor, which is pushing the growth of automation and more advanced machines, Isbister said. “The goal would be to automate more so that you can bring your parts-per-hour up and quote down and therefore, we’re more competitive,” he said. Advancing machine capabilities is nothing new. After Isbister bought GenMet in 1999, he invested in a new, more productive laser cutting system. At the time, the company had a journeyman fabricator who felt the system was a threat to his job and made his feelings known in the shop. “The business was a $3 million business at the time, and if we were going to stay a $3 million business and we were
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Made to fit Wisconsin’s future. And yours. The University of Wisconsin System is more than a collection of world-renowned colleges and universities. It’s the leading edge of higher learning in our state and beyond, committed to developing smart, future-focused programs that give everyone The work uniforms of retired GenMet employees hang over the shop floor like retired basketball jerseys in an arena.
going to automate, sure, (the journeyman fabricator) was right – don’t need the people, don’t need the overtime – but we quadrupled the size of the business,” Isbister said. “Unfortunately, he continued with that attitude and he had to leave.” There are plenty of examples in manufacturing of companies using automation to become more productive and competitive. David Gazzo, CEO of Felss Rotaform LLC, said at a recent Waukesha County Business Alliance luncheon that in 2010, his company paid out $1.4 million in wages to 44 employees and did about $10 million in sales. By 2015, sales had doubled to $20 million and wages were $3.1 million, but there were just 49 employees. “It was through automation and through efficiencies that we could increase the sales without really increasing the number of employees, but what we really increased was the pay,” he said. Not only did Felss invest in higher wages, but also in retaining its employees. It starts with competitive wages and includes profit-sharing and a 401(k) match, but the other perks, including trips to Green Bay Packers games and other company celebrations, make the company stand out. “We have almost like a department of entertainment in our company; it’s like a circus,” Gazzo said. He’s often told he does too much, but feels the company needs to do more to attract and retain employees, because it is still difficult to find second- and thirdshift workers. At Fairchild Equipment, a Green Baybased distributor of material handling equipment, training and transparency are at the heart of employee attraction and re-
tention. Van Clarkson, Fairchild southern region president, said the company is expecting a quarter of its field staff to retire in the next five years. Clarkson’s challenge is that he’s replacing 30-year veterans with millennial employees who could not be more different from those exiting the business, with a greater emphasis on flexible hours and clearly defined career paths. Fairchild seeks to allow technicians to control their own pay by tying it to training, with three levels of pay – $15 to $19.99 per hour; $20 to $24.99; and $25plus – based on training completed. Employees then have the chance to move into new or aftermarket sales, and eventually into management. New hires also work with a mentor for 90 days to help them identify deficiencies. Clarkson said training new technicians and making them feel comfortable within the company has resulted in almost zero turnover. “We need to do the same thing everywhere,” he said, suggesting every position would have a similar structure in the near future. Retention also is bolstered by being transparent with financial performance, allowing employees to see topline results, costs and profits, Clarkson said. “You start educating people and treating them like they’re business people, they’re bought in,” he said. Even with the number of retirements increasing, Clarkson said he’s not interested in hiring just anyone or in drawing employees from other firms. “I will take my time to find the right employees as opposed to just plugging them in,” he said. n w w w.biztimes.com
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When it’s time to sell Experts recommend different approaches
O
ver the years, John Lauber has been approached by several firms and individuals interested in buying the successful Milwaukee company he built, LauberCFOs. Each time, he declined to sell. “While there were things that were attractive about Lauber each of those opportunities, I felt I had the time to look and find the right fit,” Lauber said. “I wasn’t in any hurry to sell.” Lauber, 66, founded the part-time chief financial officer placement firm in 1986. Recently, he found an interested buyer, Mark Wiesman, through a mutual colleague and knew it was the right fit. “It was really kind of a vetting process, a dating process, if you will,” Lauber said. “I believe that he will carry on the same culture, care and concern for providing real value to our customers, a focus on providing a good work environment for our employees, and his interest in providing me a meaningful, ongoing role.” 20
BY MOLLY DILL, staff writer
Wiesman, who had looked at about 300 companies over a four-year period and made a dozen purchase offers, put together an initial term sheet. The two, both of whom have financial backgrounds, hashed out the final sale agreement together. The vast majorWiesman ity of businesses are sold through these kind of negotiated sales, not as fully marketed businesses, said Vicki Fox, managing director at investment bank Eisen Fox & Co. LLC in Milwaukee. That could be because sellers already have an idea of who their buyers would be, such as a competitor, or they want to keep the sale private. Many law firms in town make introductions among their clients, for example, if they think the companies would be a complementary fit, Fox said. Most of them bill those clients at an hourly rate. “I think that’s great—if they can make an introduction and it’s going to be a solid price…that’s the way most deals B i zT i m e s M i l w a u k e e
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get done,” she said. “Sellers always kind of know; they have an idea of what they think (their company is) worth or what they want for the business and as long as they get what they want…it is a hassle to go through the whole marketing process.” The Milwaukee Fox office of general practice law firm Husch Blackwell, which was formerly Whyte Hirschboeck Dudek S.C., frequently makes matches for its clients. And recently, it started offering a financial analytics model and providing investment banking resources to help complete the sales. “There’s a constant drive from our clients to provide richer solutions and more value at the same or less cost,” said Eric Lenzen, who leads the financial services and capital markets team for the firm. “What we’re trying to do is make ourselves a better, more comprehensive resource to our clients.” Clients generally have an idea of what
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they think their business is worth, and Husch Blackwell’s team can help them determine whether an unsolicited offer, for example, is in the range of reasonableness, he said. The firm recently brought on two investment banking Lenzen professionals to offer this expertise. “This is not a goal to replace our clients’ investment bank,” Lenzen said. “We think the evolution of the practice necessitates the addition of financial advising and investment banking capabilities and we’ve taken that leap. We constantly try to innovate and serve those clients better.” Husch Blackwell regularly refers its clients to investment bankers or other professionals as needed in a transaction. But if a client is ready to sell and already has two strategic channel partners lined up, the marketing process is not always necessary, he said. However, some experts advise business owners get an outside opinion – or several – before going through with a sale. Fox recommends business owners gather a team when they decide to sell the company: a tax advisor, a legal advisor, an investment banker and a wealth manager. In the end, the only way to be absolutely sure the business gets the best possible price is by marketing it to a wide national audience, as an investment banker would, she said. Tammie Miller, managing director at Milwaukee Miller investment bank TKO Miller LLC, agreed business owners should put together a team instead of using just one professional, so several perspectives and interests are represented. An investment banker is trying to find the best price, while an attorney is looking over the legal documents in the client’s best interest and doesn’t have an incentive to make sure the transaction is completed. “(The practice of engaging only a law firm to sell a business) doesn’t happen anywhere else in the entire United States,” said Miller, who has been doing investment banking transactions across the country for 26 years. “What happens in Wisconsin, I think, is we’re frugal and this
is not the place to be frugal. This is like being frugal with your heart surgery or your Lasik surgery. At best, you leave millions on the table. At worst you leave millions on the table and you’re at risk because of bad contract terms and conditions.” Law firms need to be careful about completing an entire transaction, including a success fee, because it may present a conflict of interest, Miller said. Husch Blackwell does not take a success fee, Lenzen said. It prices its cradleto-grave M&A services with clients ahead of time, so it shares in the upside or the downside of a transaction. So if a transaction fails, Husch Blackwell would charge something like 75 percent of its costs. And if the sale goes through, it might charge 125 percent of costs. “It’s up to the attorney and their client, but it should never be contingent on a transaction happening,” Miller said. Under Wisconsin ethics rules, an attorney is allowed to practice law and another occupation as long as the two are clearly separated or the client is informed
in writing of the terms of the transaction and the lawyer’s financial interest in the transaction up front, said Aviva Kaiser, assistant ethics counsel at the State Bar of Wisconsin. “It is permitted. There’s no per se prohibition,” she Kaiser said. “When lawyers start offering other services, it can confuse the client. If it’s in the same suite of offices, make really clear that it’s not part of the law practice. Either way, there’s a number of precautions lawyers need to take, but they can do it as long as they comply with the rules.” Husch Blackwell added investment banking professionals to help it better meet the needs of its clients, Lenzen said. “This is what our clients want. This is what our clients asked us for,” he said. “Innovation is nothing more than trying to modernize and evolve to serve the demands of your clients.” n
BR IEFS
Consolidation could leave Wisconsin with no small banks by 2025
al trend. Over the past 30 years, there has been a 65 percent reduction in the number of banks in Feldman’s Federal Reserve district, which includes part of Wisconsin.
Based on the current pace of consolidation among Wisconsin’s community banks, there will be zero banks with less than $50 million in assets by 2025, according to a projection by the Federal Reserve Bank of Minneapolis.
Wipfli acquires third company this year
Ron Feldman, executive vice president and senior policy advisor at the Minneapolis Fed, presented the finding, along with several other Wisconsin banking trends, at the Wisconsin Bankers Association Executives Conference held recently at The Pfister Hotel in downtown Milwaukee. From 1985 to 2016, the number of banks and thrifts chartered in Wisconsin declined from 575 to 227. In that same time period, the percentage of banks with less than $50 million in assets has dropped from 68 percent to 6 percent of the state’s institutions. By 2025, this smallest size of bank will have gone extinct and there will be just 96 banks chartered in the state, Feldman said. This consolidation, mainly driven by mergers and acquisitions among community banks, is a nation-
Wauwatosa-based Wipfli LLP has acquired Minneapolis-based Barefoot Technologies. This is the third company Wipfli has acquired in 2017. Barefoot is a niche IT consulting firm founded in 2012 that offers development, integration, implementation, consulting and support for a platform called NetSuite. Wipfli offers accounting and business consulting services, including for the NetSuite platform. With the addition of Barefoot, it will expand its expertise in the area. The Barefoot team will be rebranded as Wipfli and its three employees will move into Wipfli’s Minneapolis office. Wipfli has more than 1,800 employees at 44 offices in the U.S. and India. The company has been expanding rapidly over the past few years, mainly by acquisition.
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banking & finance
Do you Venmo?
P2P payment popularity on the rise BY MOLLY DILL, staff writer
T
he Hartland Hawks U10 select baseball team raised more than $1,000 selling kringles for its annual fundraiser over the holidays. Ordinarily, each team member would collect cash and checks, and the parents might front the money to the team before the orders were delivered to customers. But Robyn Ludtke, whose nineyear-old son Mason plays on the team, used a new tool for handling payments this year: Venmo. Venmo is one of Ludtke several person-toperson payment mobile apps that have been gaining in popularity as consumers
use their smartphones for more and more of their daily tasks. A user plugs her bank account information into the app, and can directly transfer money to friends and family with the touch of a button. “My son alone, he sold over $400 worth of kringle,” said Ludtke, 35, talent and education manager at the Waukesha County Business Alliance. “We weren’t taking the money out of our pockets and turning around and writing the baseball organization a check and then waiting for the money from the people who ordered from us. It was instant.” “Venmo I use for paying people personally, if people in our family want to pay each other with money for something,” said Jane Trenchard-Backes, membership development at the Metropolitan Milwau-
kee Association of Commerce. “When you buy things online, like two hotel rooms or airfare or tickets, it’s much easier to reimburse people through Venmo.” About one-third of U.S. consumers made a P2P payment in 2016, to the tune of about $500 billion. Half of us are projected to use the technology by 2021, according to Javelin Research. And by 2019, about $174 billion of those P2P payments will flow through mobile devices, according to PayPal. While the concept of P2P payments isn’t new – PayPal has been around since 1998 – the use of smartphones to make the payments is fresh. Millennials like Ludtke have taken up the mantle of the cashless mobile payment, often carrying no cash and using Venmo to split the
check or the electric bill with friends. Many financial institutions have had P2P payment products for years, but the ability to transfer money to friends who bank elsewhere has not always been available. Banks have been slower to get on the P2P bandwagon, but will have to make it a priority as customers get younger, said Jack Vonder Heide, president of Technology Briefing Centers Inc., which advises banks on emerging digital technologies. “The exercise Vonder Heide that banks are going through now is they’re looking at account activity,” specifically how much
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P2P money is moving in and out of its accounts and via which services, Vonder Heide said. “How much money could our bank make on fee income based on the volume that we see?” In a 2015 Aite Group LLC survey of 1,724 U.S. consumers, 20 percent had used mobile banking to make a P2P payment in 2014, while 16 percent had used Venmo, Square or another mobile service. And 49 percent had used PayPal, though it wasn’t broken out by desktop and mobile. That’s not to say banks lost out – 71 percent of those respondents had used cash for P2P, 56 percent had used checks and 35 percent had used a debit card. A new effort being undertaken by many of the largest U.S. banks would rebrand their services under one cohesive name – the Zelle Network. It’s being launched through a partnership between Brookfield-based Fiserv Inc. and Early Warning, both financial technology developers. Fiserv provides P2P payment technology to more than 2,400 financial institutions, including 14 of the country’s top
Google Wallet is one of several person-to-person payment mobile apps gaining in popularity.
30 banks, said Mark Ernst, executive vice president and chief operating officer at Fiserv. It started offering its Popmoney P2P product in 2012.
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Ernst contended banks are completing a larger volume of P2P payments than financial technology companies and that’s not entirely clear to consumers. The goal of
.................................. P2P continued on page 25
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banking & finance
Business should factor into owners’ overall asset allocation plans Remaining portfolio can be balanced against risk
F
or most business owners, the company itself is their largest asset. But in many instances, these executives are not including the business in their overall asset allocation plan, wealth managers say. Partly, this is because the business owner is so busy running the day-today of the business, he or she doesn’t have time to look at the big picture, said Morse Bill Morse, senior vice president, branch manager and financial advisor at B.C. Ziegler and Co.’s
Mequon office. “Frankly, many business owners don’t do financial planning because their time is so absorbed into running the business, their baby, that all their energy and their time and their money is tied up in that business,” Morse said. “That business is a member of the family, practically, so they’re enraptured Walker by it and they’re so close to it that it hasn’t occurred to them to step back and say ‘This is an asset and
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where does it fall in the spectrum and especially where does it fall in the spectrum of risk?’ That’s what, in my opinion, it’s very important to consider,” said Sara Walker, senior vice president, senior port-
a company is a pharmacy, he would limit the rest of the portfolio’s exposure to health care. “Look to invest in assets that perform differently than the business does,” Didier
“Look to invest in assets that perform differently than the business does.” — Christopher Didier, Robert W. Baird & Co. Inc. folio manager and chief economist at Associated Bank in Milwaukee. A company could go under, which is a major risk to consider, even if it is uncomfortable, she said. “Whether you’re owning an individual stock or a business, don’t fall in love with it because it’s not in love with you,” Morse said. “Intellectually, if this business fails, how is it going to impact our lives and how do we plan around that? Have money in cash and bonds and stocks, so if something goes wrong with the business, you’ve got other things you can rely on.” Many business owners think they’re more diversified than they are, because they’re not considering the industry and niche of the business and weighting other investments against it, said Christopher Didier, managing director with the FamDidier ily Wealth Group at Robert W. Baird & Co. Inc. in Milwaukee. “The key thing is just No. 1, that business owners realize the business itself is risky and that they don’t overestimate what the diversification they have right now is,” Didier said. For example, if the company owns its building, Morse would avoid real estate investments in the rest of the owner’s portfolio, since so much of his or her net worth is already tied up in real estate. If
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said. So if the business correlates closely with the economy, look at assets in another area. Another risk factor is that business owners are susceptible to reaching for returns that are not available, Didier said. “Business owners oftentimes have a very high return expectation because they generally get very high returns in the businesses they operate and they also are not always aware of the risks they’re taking,” he said. “When they go into financial markets, then those are risks that they may not be all that familiar with, plus they see it moving up and down on a daily basis, whereas they don’t value their business on a daily basis.” Even if they’re not planning to exit their business anytime soon, business owners should consider many years ahead of time what–if any–value they can expect from the company down the road, Walker said. Among the questions she asks clients to consider are: What is the end game of the business? Do you see a sale on the horizon? Do you see a transfer of ownership to your family at a discount or at market value? “The succession one is a key question that helps a portfolio manager distinguish between a hobby and a going concern or an asset,” Walker said. “A lot of businesses are successful because they’re spinning off enough cash flow that they’re giving us a nice living,” Morse said.
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Of course, things like the value of the business and markets’ performance will change over time. “Can I tell you what the stock market’s going to be 20 years from now? Well, we can’t,” Morse said. “What’s critical about planning is it’s not a one-time gig. It’s a living plan.” Once the owner has determined what kind of exit he or she plans to make, the investment portfolio can be molded around it. “If they’re taking on all that risk over in their business, their investable assets should compensate for that and be more conservative and perhaps have more of a fixed income allocation than someone else would have who has a regular kind of 8-to-5 type of job,” Walker said. “If the business owner still wants to participate in the stock market with their investable assets…you build a portfolio that doesn’t perhaps have as much small cap exposure, but has more in large caps and large companies that can pay dividends.” Morse recommends companies take
their cash reserves, which are often in money markets, and reallocate it into a “CD ladder,” in which one-quarter remains liquid in the money markets, onequarter goes into a one-year CD, another quarter goes into a two-year CD and the last quarter goes into a three-year CD. When the one-year CD comes due, if the owner doesn’t need the money, she could reinvest it in a three-year CD and continue the cycle. Despite a penalty that may be incurred when the money is needed, it still may be a better investment than leaving the money sitting in money markets, he said. “It hits both your liquidity and gives you a little bit better yield,” Morse said. Didier in 2008 co-wrote a whitepaper highlighting the tendency for business owners to overlook their most significant asset, and what they can do to avoid some of the pitfalls. “You can always hold (the business) on part of your balance sheet as something that’s there,” he said. “It’s something that’s visible to you that you’re thinking about.” n
P2P................................................ from page 23
Banking team at Godfrey & Kahn S.C. in Milwaukee. “The issue with a lot of fintech companies is there’s so many of them popping up it’s really hard to know who you’re dealing with, whereas the banks are a known entity to people and they have more robust security measures.” The speed at which fintech firms have been forming has put the more strictly regulated banks at a disadvantage, said Robert Zondag, CFO of The American Deposit Management Co. in Delafield, which handles both bank and fintech transactions. Among consumers over the past decade, Zondag has tracked a shift of about 60 percent from writing and depositing checks to making mobile payments. “It’s really the point of contact with the consumer that needs to be looked at,” Zondag said. “The whole premise that banks and fintechs are trying to both capture is that share of the customer’s transactions or wallet. And the less that a consumer depends on their bank for Zondag that process, the less opportunities the bank has to provide other services.” n
ning their network inside their bank under their brand name, consumers don’t know that network extends beyond the brand outside their bank,” he said. Another reason banks have been slower to embrace P2P networks: they can be expensive. “Venmo loses money on every transaction and they’re struggling to figure out how they will eventually make money off this large base of users,” Ernst said. “It’s got to be part and parcel of the entire relationship rather than being treated as if it’s got to be a standalone profit center in and of itself.” Zelle will offer two advantages over fintech applications: It’s offered by the bank itself, adding a level of trust for consumers; and the funds transfer will happen in real-time, rather than after the 24-hour lag most fintech P2P services require, Ernst said. “What the banks are really in the best position to do is to Murphy capitalize on their already existing customer relationships,” said Patrick Murphy, a shareholder on the
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strategies
Innovate or Die
Tips on hiring people with a creative and innovative mindset
I
f you want to run a company that drives new revenue from innovation, the source of most new revenues, then you have to hire creative individuals with an innovative mindset. How do you do that? Katherine Power, chief executive officer of Clique Media Group, a media and marketing agency, held forth in a recent interview in the New York Times explaining how she attempts to identify innovative hires. Her insights include: »» If the candidate wrote for XYZ publication, did he produce articles which suggested new ways of getting revenue? »» She asks the candidates when they go home at night, what would they describe as having had a great day? »» What have they done to create their own experiences, such as a new blog or initiatives within their prior companies which demonstrated the willingness to try something new and unusual, and what was that? »» She will even ask them how they saved their company money in a creative fashion. Here’s what some of our local leaders 26
have to say about what they do to look for individuals they consider creative or innovative when they bring on talent: Cynthia LaConte, CEO of Dohmen, a highly successful life sciences company in the Third Ward, says: “At Dohmen, we’re always looking for people that are inherently curious and can perceive the world in different ways. That’s what keeps our business fresh and relevant. But there’s a fine line between creativity and chaos. A company is a living system – a collective of individuals that navigate as a unit. So you need to establish whether candidates can connect to your company’s purpose. I always ask interview questions that explore whether there’s a match to our vision and values. Remember – “Culture eats strategy for breakfast!’” She’s a leader who gets it and that’s why her company is going places no other company has gone. Mike Lovell, former chancellor of University of Wisconsin-Milwaukee and now president of Marquette University, is known for hiring outstanding talent. He says: “Our best candidates and most frequent hires are those who go beyond having great ideas; they also talk passionately B i zT i m e s M i l w a u k e e
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about how they’ve made their ideas happen elsewhere.” The law firm Husch Blackwell has 1,500 employees (partners and staff) located in 19 cities around the country. Paul Eberle, a successful entrepreneur in his early career, is now a deputy CEO for the firm, which acquired Milwaukee-based Whyte Hirschboeck Dudek last year. Eberle says he looks for “a number of qualities that are expected in everyone we hire: creativity, intelligence, drive and passion, to name a few. The real challenge is to find leaders, problem-solvers, people who own the issue and can take any challenge to a successful resolution – while making everyone on the team better along the way.” Paul Jones has been a successful entrepreneur in his own right leading innovative companies and now is a coach to startups and runs a very successful angel network to finance startups. He has a very interesting take: “For founders – the folks with the big, outside-the-envelope vision – you look for fire in the belly coupled with an ability to explain their vision in a way that not only challenges, but respects the less visionary folks they need to inspire (think investors, employees, customers).”
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DA N S TEIN IN GER INNOVATION In Jones’ experience “arrogant knowit-alls don’t get very far unless they have done it before. For the push-the-envelope innovators…you look for fire in the belly, again, but this time in the context of just knowing they can find and use the available tools to accomplish the vision.” In Texas, they would say avoid hiring those individuals who are: “All hat and no cattle.” Avoid slick talkers. Look for prior results. Clearly, there’s no simple one-sizefits-all formula. My suggestion is that you deliberately build in questions that challenge the candidate to describe and document their previous creative and innovative accomplishments in both their business and personal lives. n Dan Steininger is the president of Biz Starts and of Steininger & Associates LLC, which helps companies drive new revenues through innovation. He can be reached at Dan@BizStarts.com.
strategies
Grow up
No matter your circumstance, don’t make excuses for failure
A
fter attending a lovely Martin Luther King, Jr. luncheon recently and reflecting on a variety of conversations since the beginning of this most contentious year, it occurred to me that if we have any hope of bridging differences and solving some of our most intractable problems, it is essential for every person to grow up. Adulthood is not a picnic. It is difficult, uncomfortable, even downright annoying at times. Peter Pan is a popular story – and a social disorder – caused by our reluctance to let go of childhood in order to embrace the demands of adulthood. We talk a lot about the growing disparity of haves and have nots, while throwing invectives at one another and pointing to the inequality and injustice of economic and social conditions. Racial tension simmers as a result of our resentments – and our unwillingness or inability to accept life’s truths. Privilege and adversity begin at birth. If you had two parents who were married; a home that was owned, not rented; and adequate household income to provide food, clothing, a good education and some exposure to cultural events, consider yourself privileged. If your parents planned early to send you to college, you are especially privileged. If, on the other hand, your early life lacked one or several of those conditions, consider yourself underprivileged in this context. That some are born privileged
while others are born underprivileged is a fact. It has become an accepted platform for prolonged grievance and, for some, a terminal excuse for failure. As children, we have an exceedingly limited view of life. Our families and communities determine our reality. Expectations are set. Our young minds have no means of seeing or understanding
controllable has been done to you, that it is unfair and that you have no ability to overcome your circumstances – you develop a fearful, angry and sometimes aggressive stance toward life. This, by the way has no inherent racial or socioeconomic root. There are people of great wealth and grave poverty who refuse to learn, grow
“Stories of triumph over adversity can be found in every culture and community across the globe.” any other reality. We want what we want within the context of these limitations and when others deny or threaten to take away what we want, we grow indignant. Observe a toddler at a grocery store or on an airplane for classic examples. Over time, if you have instruction, correction and patient guidance, you gradually come to understand that others have different experiences, desires and methods of obtaining what they want. These differences are not caused by you, nor are they yours to correct. Learning to understand them, however, is an important part of growing up. Developing this understanding might also be cast as privilege. When you remain stuck in a childlike view of the world – that something un-
and take necessary action to improve their circumstances. The traps may be different and the interpretation of difficulty may vary greatly, but the response to distress is the same. Similarly, stories of triumph over adversity can be found in every culture and community across the globe. What’s the difference? I suppose we could cite a million variables, but at the foundation of all is evidence of a growing, maturing individual whose childish understanding is gradually replaced with broader experience, deeper reasoning and a growing awareness of capacity. This development results in a shift. Awareness of one’s capability tends to fuel determination. It rejects messages
S US A N M A R S H A LL COACHING of doom and the inevitability of failure and seeks instead to learn, to do more, to strive for a better life. Another aspect of growing up is gaining the ability to make a proper assessment of life’s difficulties. Bad luck happens to everyone. Good luck does, too. Hard work and a refusal to take setback personally don’t prevent bad luck, but they do tend to open the door for good luck to find you. Additionally, as you begin to see reality more clearly, you learn to sort disappointment from danger and act accordingly. Not every unkind word is a threat, but evil is real. If you aspire to greatness or have a yearning to be more than you currently are, grow up. That is not an insult, it is an invitation. Take time to go beyond your current state. Learn. Experience. Think. Evaluate. Assimilate lessons. Your future depends on it. n Susan A. Marshall is an author, speaker and the founder of Backbone Institute. (www.backboneinstitute.com). She can be reached at (262) 567-5983 or susan@backboneinstitute.com.
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strategies
The kitchen at Baker's Quality Pizza Crusts Inc. in Waukesha.
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Consider your décor
Space designs set the tone for employees and customers
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uick check…no, you are not reading Better Homes and Gardens. But we would be doing a disservice to family businesses everywhere if we didn’t point out that family business décor is paramount to their success as a business. Take Baker’s Quality Pizza Crusts Inc., located in Waukesha. The Miller family has a factory, but between the factory and the offices is a kitchen that looks better than the one in my home. This is for all of the workers, not just family. It is comfortable, cozy even, and makes you feel part of the family…the family business. I recently had the opportunity to visit A Branovan Co. on Calumet Road in Milwaukee. A warehouse at the end of an industrial road is hardly the place one would expect this showroom/man cave. Owners David and Marie Branovan have designed their business like they would their home, with a bar, pool table and kitchen, among other things. And how can you miss the Harley parked in the warehouse/showroom? Being a family business doesn’t begin and end with children. It is important to carry that family theme to those who are not family or are honorary family. Perhaps these home furnishings are what led the trend toward more businesses adding things to the work environment that you see at home. When you enter non-family business Zywave in Wauwatosa, you can’t help but notice the workout facility, fully stocked bar, and games like Pingpong and video games on every floor. This is to appeal B i zT i m e s M i l w a u k e e
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to the heavy millennial population it employs, but also to create an image – a brand the company wishes the public to see. Spectrum Investment Advisors in Mequon has taken this homey feel to a whole different level. Fireplaces greet you upon entry and the community room is filled with high-end equipment, including a coffee-making system Starbucks would envy. Owner Jim Marshall has frequent community guests; not customers, but guests. Oh sure, he hopes they become customers, but his coffee roundtables are famous in the community and wellattended. If it feels like home, people will want to join you and work there. How sad that most businesses think working in a cube is attractive. Family businesses have figured out the secret sauce to successful businesses is making everyone feel like they are family. That doesn’t mean coming to work in your pajamas, although that might be a good future article, but it does mean a sense of comfort. Businesses taking the time to tap into the senses of the worker makes the worker feel important and more likely to be retained in the business. Better retention leads to fewer training costs. Historically, family businesses retain workers at a far higher rate than nonfamily businesses, and this cost control is attractive to those businesses. Making someone outside the family feel like a family member is also paramount to the
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DAVID B O R S T FAMILY BUSINESS
success of the family business. The design of your facility also has a lot to say to your customers about how much you value them. Recently, I was in a doctor’s office where the waiting room and the reception area were co-mingled. I learned more about the other patients and their problems, just sitting there waiting for the doctor, than I cared to. So much for privacy and patients’ rights. The room was an assembly line. This may have worked for Ford, but not for a cancer patient. Can design go too far? Yes! Check out some of the bank facades and the opulent interiors of some. They must be making lots of money...oh wait, that would be off of me, their customer. Interiors must create an image, a mood, but should not be so far over the top that they discourage customers or employees. Family firms frequently have the right amount of permanence and comfort. All businesses can learn something from their success. n David Borst, Ed.D., is executive director and chief operating officer of the Family Business Legacy Institute, a regional resource hub for family business. He can be reached at davidb@fbli-usa.com.
biz connections CA L E NDAR
NONPROFIT DIRECTORY
The Mequon-Thiensville Chamber of Commerce and other Ozaukee County chambers will host a ONCE Networking Luncheon on Wednesday, Feb. 22, from 11:30 a.m. to 1 p.m. at The Wisconsin Museum of Quilts & Fiber Arts, N50 W5050 Portland Road in Cedarburg. The event will include lunch, networking, 30-second business introductions and chamber announcements. Cost is $20 for chamber members and $30 for non-members. For more information or to register, visit www. mtchamber.org/events.
SPOTLIGHT
Racine Area Manufacturers and Commerce, University of Wisconsin-Parkside, Gateway Technical College and Herzing University will together host a Business Blender on Thursday, Feb. 23, from 5 to 7 p.m. at the UW-Parkside ballroom, 900 Wood Road in Somers. Professionals will have the opportunity to expand their network and business reach, and learn about the adult education opportunities at local higher education institutions. For more information or to register, visit business. racinechamber.com/events. The Metropolitan Milwaukee Association of Commerce will host Forecasting Economic Trends – Plan for growth, improve your odds in uncertain times on Wednesday, March 8, from 7:30 to 10 a.m. at the Harley-Davidson Museum and Motor Bar and Restaurant, 500 W. Canal St. in Milwaukee. The event, presented by CEOs of Growing Businesses, will feature an economic presentation and Q&A session by economist Brian Beaulieu. Cost is $97 for MMAC members and $127 for nonmembers. For more information or to register, visit web.mmac.org/events. BizTimes Media is a sponsor of the event. The Waukesha County Business Alliance will host a Professional Women’s Development Network Luncheon on Thursday, March 16 at The Delafield Hotel, 415 Genesee St. in Delafield. The event will include networking, lunch and a program. Cost is $30 for members; non-members should call to register. For more information, visit www.waukesha.org/events. See the complete calendar of upcoming events & meetings.
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BIZ NO T ES Third Space Brewing Milwaukee-based Third Space Brewing has been named 2016’s Best New Brewer in Wisconsin by beer rating site RateBeer. RateBeer Best, an annual online competition in its 15th year, summarizes millions of reviews of more than 470,000 beers from the world’s most avid beer enthusiasts, some with more than 40,000 reviews. Fewer than one percent of all brewers are awarded RateBeer honors. This year’s Top Wisconsin Brewer, according to RateBeer, was New Glarus Brewing Co., while the Top Wisconsin Beer was Central Waters Ardea Insignis Imperial Stout. This is the first award for Third Space, which opened in September 2016. The brewer offers brewery tours and a tap room with eight beers on tap. The company also self-distributes its beer to more than 80 locations throughout the Milwaukee area.
Rockwell Automation Inc. Milwaukee-based Rockwell Automation Inc. has received a 2017 Catalyst Award, which honors innovative organizational approaches that address the recruitment, development and advancement of women and have led to proven, measurable results. Catalyst is a nonprofit organization that seeks to accelerate progress for women through workplace inclusion. Rockwell received the award because it demonstrated that the Culture of Inclusion approach contributed to the advancement of women across businesses
and functions at the company. Between 2008 and 2016, the company’s female representation in the U.S. increased from 11.9 percent to 23.5 percent among vice presidents, from 14.7 percent to 23.2 percent among directors, and from 19.3 percent to 24.3 percent at the middlemanager level. At the most senior leadership levels, women’s representation doubled, increasing from 11.1 percent to 25 percent among the CEO’s direct reports and from 11.1 percent to 20 percent on the board of directors.
OnKöl Milwaukee-based startup OnKöl has been nominated for an international award given out by the Mobile World Congress that recognizes a company that has pioneered innovation in health care using mobile technology. OnKöl is based out of the Direct Supply Technology Center at the Milwaukee School of Engineering. The company began mass producing its flagship product, the OnKöl hub, in early 2016. The device links a variety of home and health monitoring sensors to data platforms using mobile networks so that the monitoring data can be accessed by both health care professionals and the family members of people who own them. The award, called the Innovation in Health award in the event’s Connected Life category, is one of 39 that was given out during the annual Global Mobile Awards put on by the Mobile World Congress in Barcelona, Spain.
NAMI Greater Milwaukee 3200 S. Third St., Milwaukee 414-344-0447 | www.namigrm.org Facebook: NAMI Greater Milwaukee Year founded: 1979 Mission statement: The National Alliance on Mental Illness Greater Milwaukee is a nonprofit, community-based, self-help, support, education and advocacy organization dedicated to improving the lives of those with mental illness, their families and those touched by mental illness. Primary focus: Support, education and advocacy for families and individuals affected by mental illness. Other focuses: Mental health system change, crisis intervention team training, criminal justice, housing and suicide prevention.
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Board members: »» Kelly Armstrong, Easter Seals »» Barbara Beckert, Milwaukee office director, Disability Rights Wisconsin »» Clarence Chou, child/adolescent psychiatrist, Milwaukee County Behavioral Health Division »» Benjamin Fendrich, CLASP supervisor, La Causa »» Rochelle Landingham, Milwaukee County Wraparound »» Arleen Michor, retired court commissioner »» Thomas Reed, Public Defender’s Office
Employees at this location: 8
»» Katie Rose, University of WisconsinMilwaukee University Housing
Key donors: Individuals, Greater Milwaukee Foundation, Charles E. Kubly Foundation, Bader Philanthropies, Stackner Family Foundation, Milwaukee County, local mental health providers and private sector businesses.
»» Katina Shaw, senior director-community relations, Milwaukee Brewers
Executive leadership: Peter Hoeffel, executive director Board of directors: Executive committee: »» Patrice Baker, president, Milwaukee County Probate court commissioner »» Thomas Donegan, vice president, retired Milwaukee County judge »» Catherine Mclane, treasurer, Johnson Controls Inc. »» Ann Diliberti, secretary, retired school teacher
To have your business briefs published in a future issue of BizTimes Milwaukee send announcements to briefs@biztimes.com. w w w.biztimes.com
»» Patricia Curley, president emeritus, judge, Court of Appeals, District I
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»» Diana Vang-Brostoff, clinical social worker, VA Medical Center Is your organization actively seeking board members for the upcoming term? Yes. What roles are you looking to fill? Private sector business leadership, Latino community leadership, technology. Ways the business community can help your nonprofit: Financial support through sponsorships of our special events. Venues for education and outreach. Key fundraising events: NAMI Walk, Saturday, May 20. Annual Awards Dinner, Wednesday, Oct. 4.
Get the latest nonprofit news delivered in your inbox every Friday. Sign up for BizTimes' Nonprofit Wekly at biztimes.com/subscribe n
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biz connections PER SO NNE L F I L E
■ Accounting Daniel Glomski has joined SVA Certified Public Accountants S.C. as a principal and member of the Business Advisory Services group in the firm’s Brookfield office. He has more than 25 years of experience in the accounting field, with expertise in business valuations, tax planning and strategy, and general business consulting across a wide variety of industries.
Submit new hire and promotion announcements to www.biztimes.com/submit/the-bubbler
design and construction elements of the project by creating site logistic plans, fourdimensional models and virtual mockups.
and account reconciliation.
■ Legal
■ Engineering GRAEF, Milwaukee, has named Steve Rech the leader of its Milwaukee Structural Group. Rech has a background in steel-framed building design and most recently served as a structural
Wenger Lehn and a unique mix of field work and management skills. Delsman
engineer associate.
■ Banking & Finance
York
Nuesse
Citizens Bank, Mukwonago, has announced its 2017 promotions. They include: Jill York, assistant vice president, branch manager; Lowell Nuesse, Bonesteel assistant vice president, consumer lending; and Stefanie Bonesteel, assistant vice president, marketing.
■ Building & Construction Mariya Sorensen joined Mortenson Construction’s Brookfield office as an integrated construction coordinator on the project team for a construction project at the Froedtert & the Medical College of Wisconsin campus. Sorensen will develop and manage the virtual
Spahn Godfrey & Kahn S.C., Milwaukee, has elected
Shane Delsman, Brian Spahn and Peter Wilder as shareholders
■ Health Care Medical College Physicians, the Medical College of Wisconsin’s adult patient care practice, announced the appointment of Dr. John Schreiber as chief executive officer of MCP and senior associate dean for Clinical Affairs – Adult Practice.
in the firm. Wilder is a member of Godfrey & Kahn’s banking and Wilder financial institutions practice group, Spahn is a member of the firm’s litigation practice group and Delsman is a member of the firm’s intellectual property and litigation practice groups.
■ Manufacturing Kickhaefer Manufacturing Co., Port Washington, as vice president of sales. Scallon comes to KMC with a wide range of strategic sales experience and will lead KMC’s business development efforts.
Nieman Commons Saz’s Hospitality Group, Milwaukee, has promoted Angie Nieman to sales and events manager and has hired Kellie Commons as office manager and billing specialist. Commons will manage office operations and procedures, including billing
Saint John’s On The Lake, Milwaukee, has named Mike Lingle its director of facilities. In his new role at Saint John’s, Lingle is responsible for all aspects of maintenance, grounds and buildings on campus. In addition, he will serve as a member of the organization’s leadership team and will be instrumental in the development of Saint John’s future renovation plans.
■ Staffing
Bill Scallon joined
■ Hospitality
■ Senior Living
■ Professional Services Lemberg Signs & Lighting, Brookfield, has hired Zach Wenger as project manager in its Sign and Lighting division and Tom Lehn as installation manager. Lehn comes to the role with 21 years of sign industry experience
Germantown-based JellTech has hired Mark Boeder as senior technical and executive recruiter, Mike Bonk as manager of strategic talent solutions and Erv Raasch as senior development manager.
■ Transportation GO Riteway Transportation Group, Oak Creek, has hired Steve McKinnon to its safety team as the new regional safety manager.
Real Estate & Development
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biz connections
n GLANCE AT YESTERYEAR VOLUME 22, NUMBER 24 FEBRUARY 20 - MARCH 5, 2017 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120 PHONE: 414-277-8181 Fax: 414-277-8191 WEBSITE: www.biztimes.com CIRCULATION E-MAIL: circulation@biztimes.com ADVERTISING E-MAIL: ads@biztimes.com EDITORIAL E-MAIL: andrew.weiland@biztimes.com REPRINTS: reprints@biztimes.com PUBLISHER / OWNER
Dan Meyer dan.meyer@biztimes.com DIRECTOR OF OPERATIONS
Mary Ernst mary.ernst@biztimes.com DIRECTOR OF STRATEGIC INITIATIVES
Jon Anne Willow jonanne.willow@biztimes.com
EDITORIAL EDITOR
Andrew Weiland andrew.weiland@biztimes.com MANAGING EDITOR
Molly Dill molly.dill@biztimes.com REPORTER
Corrinne Hess corri.hess@biztimes.com REPORTER
Arthur Thomas arthur.thomas@biztimes.com REPORTER
Ben Stanley ben.stanley@biztimes.com INTERN REPORTER
Maredithe Meyer maredithe.meyer@biztimes.com
Wisconsin Theater
SALES & MARKETING DIRECTOR OF SALES
Linda Crawford linda.crawford@biztimes.com BUSINESS DEVELOPMENT EXECUTIVE
Maribeth Lynch mb.lynch@biztimes.com ACCOUNT EXECUTIVE
Molly Lawrence molly.lawrence@biztimes.com ACCOUNT EXECUTIVE
Maggie Pinnt maggie.pinnt@biztimes.com ACCOUNT EXECUTIVE
Christie Ubl christie.ubl@biztimes.com ACCOUNT EXECUTIVE
Lena Tomaszek lena.tomaszek@biztimes.com SALES INTERN
Salimah Muhammad salimah.muhammad@biztimes.com
PRODUCTION & DESIGN GRAPHIC DESIGNER
Alex Schneider alex.schneider@biztimes.com ART DIRECTOR
Shelly Tabor shelly.tabor@biztimes.com
This photo, taken circa 1922, shows the Wisconsin Theater under construction on what was then Grand Avenue in downtown Milwaukee. The movie theater, which was the largest in the state at 3,275 seats, operated from 1924 to 1986 at Sixth Street and Wisconsin Avenue and was then torn down. The site now houses the Wisconsin Center. —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
Think summer…fest!
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’ve lived in Wisconsin all of my life, but have never gotten used to winter. By this point of the year, I’ve had it. To cope, my thoughts turn to summer. And a big part of summer in Milwaukee, of course, is Summerfest. This year will be the 50th edition of Summerfest, which has come a long way from its early days of stages that consisted of wooden platforms raised on concrete blocks. Milwaukee World Festival Inc., the nonprofit organization that runs Summerfest, has done a great job of improving Henry Maier Festival Park over the years. And now, the organization is working on three huge improvement projects. Most notably, MWF officials announced recently their plan to replace the 23,000-seat, 30-year-old Marcus Amphitheater, at a cost of between $30 million and $35 million. Construction is expected 32
to begin in 2019. Under a new sponsorship deal with Madison-based American Family Insurance, the amphitheater will be called the American Family Insurance Amphitheater and the festival will be renamed Summerfest presented by American Family Insurance. Also included in the deal is a new North Gate community plaza, to be completed next year. Further details of the 10-year sponsorship agreement were not provided, but clearly it is a multimillion dollar deal and huge for Summerfest. It is interesting to see a Madison-based company sponsoring one of Milwaukee’s greatest cultural institutions. Clearly, American Family wants to bolster its brand in the Milwaukee area. Another big project is well under construction. Major renovations are being done at the Miller Lite Oasis, and B i zT i m e s M i l w a u k e e
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will be complete this year. The stage will have a new design with improved sight lines, video screen upgrades, a new bar, upgrades to other bar areas, a hospitality deck expansion, a new elevated viewing deck, and a reconfigured marketplace and retail store. The project is part of the renewal of a sponsorship agreement with Chicago-based MillerCoors, which remains a major supporter of Summerfest and the Milwaukee community. The third big project planned at the festival grounds is a new U.S. Cellular stage. The new stage will seat 9,000 fans and also will have a larger performance area, a 25-foot LED video screen and a redesigned bar area. It will be built in time for Summerfest 2018. Most of the costs will be footed by Chicago-based U.S. Cellular. These are just the latest big improve-
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ANDREW WEILAND Editor BizTimes Milwaukee
ments to the festival grounds. Milwaukee World Festival has completed $65 million in improvements to its facilities, primarily on the southern end of the grounds, since 2004, including a two-phase, $35 million project from 2010-’12 on the South Gate and box office, the Briggs & Stratton Big Backyard stage and the waterfront BMO Harris Pavilion stage. All of this investment, combined with the lakefront setting, is making the festival grounds into a world-class facility. What’s next? Milwaukee World Festival officials should be working on plans to upgrade the Uline Warehouse stage on the far north end of the festival grounds. n
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biz connections
Professional Development Bootcamp FUEL Milwaukee hosted a five-day Professional Development Bootcamp that featured 15 events focusing on leadership strategies, workplace relationships and individual career growth. Among the events were “Secrets of Successful Negotiations,” hosted at Johnson Controls and “Healing Dysfunctional Meeting Disorders,” hosted at Rockwell Automation Inc.
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Sherry Gajeski of Mortgage Guaranty Insurance Corp., Dana Kiblawi of The Rauser Agency Inc. and Elizabeth Krier of Rockwell Automation.
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Erin Umhoefer of Mortenson Construction and Adam Martin of Aurora Health Care.
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Cheryl Gross, Nicole Roost and Roxanne Meier of
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Premier Medical Staffing Services LLC. 4
Lianna Bishop of the Urban Ecology Center, Joanna Marker of Northwestern Mutual Life Insurance Co. and Mark Volz of Guardian Credit Union.
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Christine McMahon of Christine McMahon & Associates addresses event attendees at “Secrets of Successful Negotiations.”
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Lisa Kigas and Ashley Reyes of Rockwell Automation.
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Kaelyn Wilke of Millipore Sigma, Tyler Slove of GE Healthcare, Mark Rye of Fearing’s Audio Video Security and Toby Canapa of Rockwell Automation.
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Kelly Candotti of American Cancer Society, Stephany Ruiz of GE Healthcare and Daniel Enghofer of GE Healthcare.
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Christine Hill of Future Milwaukee addresses event attendees at “Healing Dysfunctional Meeting Disorders.”
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ERICH SCHROEDER PHOTOGRAPHY
the last word
Kill ‘busy’ to focus on what matters Jackie Steinmetz founded Milwaukee-based Accelity Marketing in 2013. Leaders’ tendency to take on too much can prevent them from taking advantage of opportunities, she says. “Leaders today wear being busy like a badge of honor. We spread ourselves too thin. We spend too much time doing what we’ve always done or accepting the way things work instead of evaluating what’s important (and what’s not). “When I started Accelity Marketing four years ago, I was so guilty of wearing the busy badge. I was killing myself to grow, getting little sleep and running my business on others’ terms. It took me a few years to realize the value of my own time; then, everything changed. “Today, I teach my team to value their time to the ex34
treme. Pretend that an hour of your time is worth $1,000. Is the meeting you just scheduled worthwhile, or can this question be resolved via email? Does the call need to be 30 minutes, or can it be 15? Accelity’s culture is one of extreme efficiency. We protect our time fiercely. This allows us to enjoy the work-life balance employees at other small businesses only dream of. “Refusing to be busy is by far the most valuable leadership lesson I’ve ever learned. Free up time to do the things that other ‘busy’ leaders don’t: connect with the local business community, volunteer, say yes to network-
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Jackie Steinmetz Chief executive officer Accelity Marketing 229 E. Wisconsin Ave., Suite 400, Milwaukee Industry: Marketing Employees: 8 www.accelitymarketing.com
ing coffees, mentor a new entrepreneur. “And when you’re thanked profusely for ‘taking time out of your busy schedule,’ smile graciously, knowing you’re exactly where you want to be because you killed ‘busy.’” n
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Agenda 7:00 - 7:30 | Registration and Networking
WELLNESS SUMMIT HEALTH CARE SAVINGS
BOTTOM LINE GAINS
Presented By:
WELLNESS SUMMIT HEALTH CARE SAVINGS
7:30 - 9:30 | Breakfast and Program 9:30 - 11:00 | Roundtable Discussions During breaks | Interactive Wellness Fair Speakers • Eliz Greene Job Stress Researcher/Motivational Wellness Speaker (1) • Jerry L. Halverson, MD, DFAPA, Medical Director, Rogers Memorial Hospital-Oconomowoc and FOCUS Adult Mood Disorders Program (2) • Dr. John Brill Director of Medical Operations, The Aurora Network (3)
BOTTOM LINE GAINS
THE HAPPINESS FACTOR Why employee wellbeing boosts the bottom line
(1)
Friday, March 17, 2016 | 7:00 – 11:00 AM Potawatomi Hotel & Casino How can your company boost performance through happier employees? Join BizTimes as we present insights and learning around this important subject. Area experts will share challenges and success stories, then roll up your sleeves for three short roundtable sessions where you’ll gain actionable ideas to start or improve your own successful wellness program.
WELLNESS SUMMIT HEALTH CARE SAVINGS
BOTTOM LINE GAINS
REGISTER TODAY www.biztimes.com/wellness
WELLNESS SUMMIT (2)
HEALTH CARE SAVINGS
(3)
BOTTOM LINE GAINS
Following the presentations, roundtable sessions will include topics such as: • • • • • • • • • •
Financial Health Wellness 2.0—wellness program best practices Health Insurance in the Age of Repeal and Replace Building a Healthy Workplace Culture while Improving Your Bottom Line Beyond Meditation-Handling Stress Movement at Work-walking desks, fitness classes, and more How to pursue a happy, healthy life—simple ways to slow down and reconnect The latest in Ergonomics Drug testing policies and procedures HR updates