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CITY AND BUSINESS LEADERS TACKLE FOOD DESERT ISSUE

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BUSINESS USES FOR VIRTUAL REALITY ON THE RISE EDUCATION AND SETUP CAN STOP A CYBERSECURITY NIGHTMARE PALM SCANNER COULD SPEED BANK TRANSACTIONS Milwaukee Alderman Khalif Rainey and Sherrie Tussler, executive director of Hunger Task Force, at a food market in Raineyâ&#x20AC;&#x2122;s district.

PUBLICATION DATE

AUGUST 22, 2016

P R O U D LY P R E S E N T S

RESERVATION DEADLINE

FamilyBIZ WISCONSIN

A N N U A L

P U B L I C A T I O N

FOCUSING ON WISCONSIN’S FAMILY & CLOSELY HELD BUSINESSES There are more than 10 million family and closely held businesses in the U.S., from “mom and pop” shops to Fortune 500 companies. Their economic influence is enormous, producing an estimated 50 percent of the nation’s GDP and paying 65 percent of all wages. Wisconsin FamilyBiz will cover the issues facing those businesses, offering advice and strategies, along with “been there, done that” stories from business owners throughout the state. Organized into chapters focusing on Family Dynamics, Leadership, Legacy, Succession and Estate Planning, Wisconsin FamilyBiz delves into five key aspects of every family business. With distribution in metro Milwaukee, Green Bay, the Fox Valley and Madison, make this publication an important part of your marketing strategy and reach the decision-makers in the companies that are driving our state’s economy forward.

For advertising and sponsorship opportunities contact Linda Crawford at (414) 336-7112 or advertise@biztimes.com

JULY 15, 2016

inside

July 11 - 24, 2016 Now 4 Waukesha’s Great Lakes request approved.

Coffee Break

A conversation with Ryan Trost of Phoenix Investors LLC.

Book Review

‘Boss Life: Surviving My Own Small Business.’

On the Money

Focus on profits, not sales.

Biz News

Wisconsin cities court Milwaukee Bucks’ D-League team.

S TR ATE GIE S

Leadership Karen Vernal 23 Organizational Health 24 Susan Marshall

Generation Y

Aleta Norris 25

COV E R S T ORY BIZ CONNECTIONS

Feeding Milwaukee City and business leaders tackle food desert issue

S P E C I A L R E P O R T:

ON THE COVER: Milwaukee Alderman Khalif Rainey and Sherrie Tussler, executive director of Hunger Task Force, at a King’s food market in Rainey’s district. — photo by Troy Freund Photography

TE CHNOLOGY

Coverage includes a report on how area businesses are using virtual and augmented reality and expert insight on preventing cybersecurity breaches.

Biz Notes 26 Personnel File 27 Around Town 29 Commentary 30 The Last Word 31

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 8, July 11 - 24, 2016. BizTimes Milwaukee is published bi-weekly, except two consecutive weeks in December (the third and fourth weeks of December) by BizTimes Media LLC at 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120, USA. Basic annual subscription rate is $42.00. Single copy price is $3.25. Back issues are $5.00 each. Periodicals postage paid at Milwaukee, WI and additional mailing offices. POSTMASTER: Send all UAA to CFS. NON-POSTAL AND MILITARY FACILITIES: send address corrections to BizTimes Milwaukee, 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120. Entire contents copyright 2016 by BizTimes Media LLC. All rights reserved.

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leading edge NOW

Waukesha’s Great Lakes request approved

he City of Waukesha’s request to withdraw water from Lake Michigan was approved recently by representatives of the eight Great Lakes governors. The closely watched request was the first test of the 2008 Great Lakes Compact, which banned diversions of water to communities outside the Great Lakes basin. The compact included an exception for communities in counties that straddle the boundaries of the basin (the subcontinental divide). Waukesha is just a few miles to the west of the divide,

which cuts through the eastern portion of Waukesha County. “(The) vote is an enormous accomplishment for the people of Waukesha, after more than a decade of work,” said Waukesha Mayor Shawn Reilly. “The regional commitment to implementing the requirements of the Great Lakes Compact is also a victory for protecting this tremendous resource. We greatly appreciate the good faith (the Great Lakes governors) showed in focusing on the facts and science of our application.”

Waukesha will now be able to move forward with plans to withdraw up to 8.2 million gallons of water per day. The city plans to purchase the water from Oak Creek and transport it 27 miles by pipeline. Once used, the water will be treated and returned to the lake via the Root River. The city is under a court order to bring its water supply within federal standards for radium by June 2018. Even with approval, the city has said it won’t meet that time frame, since the design, planning and approvals for the more than $200 million infrastructure project to get the water to the city are expected to take plenty of time. And even with approval from the Great Lakes Compact Council, the potential for legal challenges remains. The exception to the ban on diversions requires a community to be without a reasonable alternative, but opponents of Waukesha’s application have argued the city does have other alternatives to using Lake Michigan water. “We continue to believe the Compact Council should have denied Waukesha’s proposal to divert Great Lakes water until the remaining areas of non-compliance were remedied,” the Compact Implementation Coalition, a group of

environmental organizations that has repeatedly spoken out against the diversion, said in a statement. Among the issues raised by the Coalition was a lack of a monitoring plan for the return flow. Opponents have also taken issue with the service area. The initial application included portions of the towns of Waukesha, Genesee and Delafield, along with part of the city of Pewaukee. Those communities were largely later eliminated from the service area, with many feeling the larger service area didn’t meet the definition of a community in a straddling county. The revised service area still includes small portions of the town of Waukesha, referred to as town islands (unincorporated areas surrounded by the city). Some opponents say they still shouldn’t have been considered part of the application. Racine Mayor John Dickert, meanwhile, has taken issue with the return flow going back to the lakes via the Root River. “There is clear evidence that Waukesha has reasonable alternatives to provide safe drinking water to its citizens, and I do not want to see their effluent contaminate the Root River in downtown Racine,” Dickert said.

——Arthur Thomas

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

Is influencer marketing right for you? As C-suite and marketing executives begin their 2017 planning, a new term is increasingly being discussed. For those who are unfamiliar, “influencer marketing” involves establishing relationships with popular online content generators to (hopefully) drive a brand’s message well beyond its core customer base. In fact, around 40 percent of respondents to a study by Twitter indicated they’ve purchased an item online after seeing influencer content on Instagram, Twitter, Vine or YouTube. There is a catch, however; this content is typically “sponsored” by the brand for fees that can be surprisingly large. So how do you determine if influencer marketing warrants a spot in your 2017 plan? Because of their non-traditional nature, 4

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analyzing these media entities (like blogs) is not always as straightforward as a cost per thousand calculation or other standard ad buying metric. Obviously, the starting point is to determine the size of the influencer’s audience, including its website traffic and social media reach.

A final point to consider is what other potential media exposure the influencer can bring to your brand. Some have a national presence or media platform. Occasionally these “bonus” exposure opportunities are a specified part of the agreement, but often they aren’t and simply happen spontaneously.

Beyond that, marketers should also look at where those numbers are coming from. If they are regional, does that geography match with your distribution? Which social platform is the influencer’s strongest and does that match your customers?

My advice? Segment out all the various aspects of the potential relationship and analyze them one by one. After that, a cumulative value will start to take shape and the decision on whether or not to engage will become clear.

It’s equally important to do a deep dive into the broad themes of the influencer’s content. Make sure your brand beliefs and identity sync with those of the influencer and his or her followers.

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——Katie Klein-Murphy is social media marketing manager at Milwaukeebased Boelter + Lincoln.

leading edge COFF E E B R E A K

P OLITIC AL BEAT

Audit critical of DNR’s water oversight BY MATT POMMER, special to BizTimes

What was the smartest thing your company did in the past year? “Relocating and expanding our headquarters to allow for the growth we’ve forecasted for 2016.”

What’s new at your company? “An in-house wellness suite complete with gym, yoga studio and massage rooms. Nearly everyone in our corporate headquarters uses our wellness facilities and it’s incredible how much it has impacted the energy in the office.”

Do you plan to hire any additional staff or make any significant capital investments in your company in the next year? “We are always hiring smart, talented people in every area of our company. With nearly 10 million square feet under ownership and aggressive plans to scale that number, our Phoenix family will continue to grow.”

What will be your company’s main challenges in the next year? “Unforeseen changes in the global economy and the industrial sectors in particular, as those directly impact our business model.”

From a business standpoint, who do you look up to? “Being a car enthusiast, I admire Elon Musk, CEO of Tesla Motors, for continuing to challenge automotive industry norms in nearly every way.”

What was the best advice you ever received? “A mentor of mine once told me, ‘Don’t be afraid to admit that you don’t know something.’ Here I had thought it was more important to never appear weak, when really I was handicapping my own professional growth.”

What’s the funniest thing that ever happened to you in your career? “The comradery in our office is amazing. I can’t think of a story appropriate for print, but between gag gifts and fake ‘bad news’ stories, I think I’ve tested the patience of just about everyone here at least once.”

What do you like to do in your free time?

What’s the hottest trend in your industry? “Big, beautiful new construction. Certainly it’s necessary for custom uses, but our experience has taught us that older infrastructure with modern mechanical updates is a perfect, low-cost solution for many of today’s industrial users.”

Do you have a business mantra? “I really like our corporate mantra,

A 124-page audit report has raised questions about regulation of the state’s water by the Department of Natural Resources. The audit assailed the DNR’s 10-year record of limited enforcement action against sewage plants and industries that exceeded limits. State Sen. Robert Cowles (R-Green Bay) said the audit’s findings were a surprise even to members of the DNR board. Its chair, Terry Hilgenberg, said the DNR staff had not told the board about the seriousness of the audit. Even more stunning was the DNR’s announcement that it is reducing its concern about the impact of high-capacity wells. It won’t consider the long-term cumulative impact of the wells on aquifers and streams in issuing well permits. More than half of the high-capacity wells are used for major agricultural operations. The move came without legislative approval. Environmental experts suggest the move will eventually end up in the conservative state Supreme Court. In the past, the high court has ruled the DNR is entrusted to protect citizens’ constitutional rights to freely navigate public waters. Who benefits from the DNR’s high-capacity well decision? Outdoor writer Patrick Durkin lists the Wisconsin Potato & Vegetable Growers Association, the Dairy Business Association and Wisconsin Manufacturers & Commerce. The potential losers are those who own waterfront property. Less water means smaller lakes and damage to fish populations. The property owners are of all political hues. Durkin notes that some small lakes and streams were struggling before the policy was changed. Cowles, a moderate Republican, suggested the Legislature act quickly to help the agency fund additional positions. One Cowles idea would allow the DNR to keep more fee revenue from polluters. But a spokesman for Gov. Scott Walker said there won’t be any changes in the financing of the DNR before next year. The latest state budget eliminated 90 DNR positions.

which is ‘Opportunity. Execution. Value Creation.’ Personally, it would have to be, ‘Ruthlessly compete with your own best self.’”

“I’ve been blessed to work for a few companies like Phoenix that back philanthropic organizations that are very close to my heart, including my role on the board of Rebuilding Together Greater Milwaukee. My wife and I are also animal lovers and support the Humane Society in various ways, including our adoption of three loving dogs over the past few years.”

Ryan Trost Senior vice president, finance Phoenix Investors LLC 401 E. Kilbourn Ave., Suite 201, Milwaukee www.phoenixinv.com Industry: Commercial real estate Employees: 105 Family: Wife, Ashleigh

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Matt Pommer is the “dean” of Capitol correspondents in Madison. His column is published with permission from the Wisconsin Newspaper Association, but does not reflect the views or opinions of the WNA or its member newspapers.

BY THE NU MBE RS

Wisconsin ranks 18th in the U.S. in private equity dollars invested in 2015, according to a new report from the American Investment Council, which found that $11.6 billion of capital was invested in Wisconsin companies last year. n

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leading edge ON TH E C ALEN D AR

MA DE I N M I LWA U K E E

Stratus Industries grows in many directions

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When a potential customer approaches Stratus Industries with a project, chances are Tom Daugherty and his team will say “yes,” especially if it is a unique, different or just generally cool product to work on. Stratus Industries, along with Gear Grove and Cleaning Supply Generics, the other business entities that operate out of the 30,000-square-foot space at 4720 N. 27th St. in Milwaukee, has a diverse line of products and services. The three companies all have slightly different ownership groups, but they are able to share resources and skills.

JUL

Contract manufacturing, unique products among offerings

ABOVE: Many of Stratus Industries’ projects reuse items like urban wood or logs from an 1890s cabin. BELOW: Stratus Industries makes products that include both metal and wood.

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

Stratus offers contract manufacturing, kitting and fulfillment, as well as its own brands of products. The company started in 2012 with Undercover Lights, a line of easy-toinstall LED lighting options intended for use on truck beds, trailers, truck boxes, boats, sheds and safes. The company also makes Gar-Box, a cigar humidor made from reclaimed 50 caliber ammunition boxes. Daugherty, Stratus Industries president, said the product was a pet project with a friend and it offers a good reason to go to fun events like cigar festivals. If LED lights and humidors were not a diverse enough set of product offerings, Stratus also has a line of work wipes. Branded as KickAss Work Wipes, they are designed to be tough yet gentle on skin. The lighting products still make up a large portion of the business, but Daugherty said the company has pushed more and more into contract manufacturing, packaging and fulfillment. Stratus’ capabilities include wood manufacturing, laser engraving and etching, CNC machining and some metal fabrication. Many of the projects have been customers with a unique need to have something built or needing a solution to a particular problem. “The first jobs came randomly and then it’s become something we’ve pushed and grown into,” he said. Many of Stratus’ projects come with their own story. Wood from urban trees sits on the shop floor waiting for a new use, an I-beam from a former foundry is destined to be a base for a shuffleboard table and logs from an 1890s cabin on Big Cedar Lake will eventually be repurposed as furniture. Having a wide range of products and offerings comes with its own problems. “We are very diverse in what we do,” Daugherty said, adding that while he likes to say “yes” to a lot of interesting projects, the challenge is figuring out the right projects to take on. “We definitely can’t do it all at once,” he said. While trying to figure out how to prioritize different ele-

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FUEL Milwaukee will host a Talent Attraction & Retention Workshop on SPEAR Strategic Thinking on Wednesday, July 13 at 7:30 a.m. at the Metropolitan Milwaukee Association of Commerce, 756 N. Milwaukee St., Suite 400 in Milwaukee. Darren Fischer, chief executive officer of Darren Fischer Consulting, will lead the workshop and instruct attendees on handling positive and negative aspects of employee engagement while maintaining confidence. The workshop will cover strategic thinking methods, goal-setting and planning. Cost is free for members or $10 for non-members. A light breakfast is included. For more information or to register, visit www.fuelmilwaukee.org/events.

BOOK REVIEW

‘Boss Life:

Surviving My Own Small Business’

Stratus Industries 4720 N. 27th St., Milwaukee Industry: Contract manufacturing Employees: 16 www.stratusindustries.com ments of the business, Daugherty is also planning to grow. Stratus currently has 16 employees and plans to add more in the coming months. Daugherty said it is challenging to find quality employees, but he feels lucky to have the current team. The company also has increased production and capabilities by adding a second CNC machine. To accommodate the increase in business, Daugherty said the company is reworking the layout of its equipment with an eye on easier production. Many of Stratus’ tables for production also have wheels, allowing for flexibility in how the space is used. Get the latest manufacturing news delivered to your inbox every Monday. Sign up for BizTimes’ Manufacturing Weekly at biztimes.com/subscribe.

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Paul Downs, an entrepreneur with an engineering degree, exposes the reality of starting and leading a small business in “Boss Life: Surviving My Own Small Business.” Downs opened his Pennsylvania-based custom furniture company, Paul Downs Cabinetmakers, in 1986. For the past 30 years, the company has specialized in manufacturing large conference tables and credenzas for commercial and residential clients and has outgrown five different work facilities. In his book, Downs authentically takes the reader through his experiences during 2012, a year that presented him with both business and familial challenges. He focuses on four main themes—sales, operations, money and power—to convey these experiences and to provide insight about growing and maintaining a successful company. Despite past failures or hardships as a business owner, Downs strongly believes people are the heart of every small business, no matter the product or service. “Boss Life” gives the term “boss” a new meaning as Downs gives honest accounts of the challenges that lead to ultimate success. “Boss Life” is available on 800ceoread.com for $21.56.

——Maredithe Meyer

leading edge NON P RO F IT N E W S

THE GOOD LIFE

ibMilwaukee opens medical clinic

Playing in a family band

Nonprofit office supply manufacturer Industries for the Blind Inc., or ibMilwaukee, which employs blind and visually impaired people, has opened a $350,000, 1,600-square-foot primary care clinic for employees attached to its facility in West Allis. The clinic was built over a period of 10 months. U.S. Sen. Ron Johnson speaks with a physician “So many of our employees find and medical assistant intern at ibMilwaukee’s it hard to get around and medical new medical clinic. appointments are really difficult for them,” said C.J. Lange, president and chief executive officer of ibMilwaukee. “They generally have to take an entire day off. Instead of losing work time, we thought, ‘Well, why don’t we just take some of our investments and (money) from the good years we’ve had in the past and invest it in a building for our people, who we insure anyway?’” The company hired an independent physician to be on-site for appointments with employees two full days and one half day each week. A medical assistant intern will also work out of the clinic, which includes space for physical therapy sessions. “They don’t have to lose work time, and if something happens right on the job we have a doctor right here,” Lange said.

——Ben Stanley

In Herzing University president Renée Herzing’s opinion, nothing—not even yoga—works better than listening to or playing music when trying to unwind after a long day.

Herzing University president Renée Herzing performs with her band, “Hell on Heels.”

When she’s not running the Menomonee Falls-based Herzing University system, which was founded by her parents in 1965, Herzing is singing and playing keytar in classic rock cover band “Hell on Heels.” “It’s a great counterbalance,” Herzing said. “Nothing takes you somewhere else like music does. It changes your mood; it makes you think differently. I do yoga as well, but I’d say music is even a step up for relaxation.” Herzing has been performing with Hell on Heels for the better part of two decades. When asked how she got involved with the band, she replied: “By falling in love with a guitar player.” “He’s fantastic and should be a studio musician,” Herzing said of her husband of almost 20 years, Rene. About 17 years ago, Rene was trying to put together a band in Milwaukee. Herzing, who had performed in musicals and sang for fun in the past, became the lead singer. Though Herzing and her husband’s first names are spelled differently, they’re pronounced the same. “We are Renée and Rene and we have a rock band together,” she laughed.

——Ben Stanley

2016 GIVING GUIDE

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leading edge O N T HE M ON E Y

BR EA K ING GR OUN D

Most companies are challenged to increase year-overyear profitability. Typically, the response is a singular emphasis on growing revenues. However, superior management teams do not wait for a recession or a crisis to address efficiency, internal costs and cash flow. By maintaining a consistent focus on maximizing profitability, the company achieves its full potential and reduces its vulnerability to economic cycles. The following may be items to consider: »» Analyze opportunities based upon gross profit contribution and/or gross profit percentage. Assure that time and resources are dedicated accordingly. »» Consider whether there is work completed in-house that could be contracted out at a lower cost without affecting quality or service, or vice versa. »» Bring the best practices of lean to the plant, the logistics and the office. »» Make sure to have timely collection of receivables, which provides additional cash flow and aids in identification of collection problems. »» Without affecting service to customers, adjust inventory levels to meet demand. »» Be strategic with accounts payable. Terms for payment should be a component of the sales process and price negotiation. »» Review all contracts of outside services and purchases for renegotiation, particularly if linked to commodities that have experienced recent deflation. »» Analyze unused or seldom utilized equipment for possible sale. Analyze utilization of floor space to reduce expenses. »» Assess current technology in order to increase efficiency. Assess talent within the organization. Prior to recruiting for an open position, consider whether two jobs can

MOLLY DILL

RED LIGHT RAMEN

Focus on profits, not sales

Red Light Ramen, chef Justin Carlisle’s popular East Side noodle restaurant, will be getting its own space at 1749 N. Farwell Ave. this month. The restaurant will be located next to Carlisle’s original restaurant, the upscale Ardent, 1751 N. Farwell Ave. Red Light Ramen has operated out of Ardent for several years from 11:30 p.m. to 1 a.m., after Ardent closes for the evening. The new location was formerly occupied by juice bar Juiced!, which moved to Walker’s Point. — Molly Dill be merged or an open position can be filled with a qualified part-time employee. »» Seek input from all employees on ways to reduce costs. If cultures and strategies align, consider acquiring or merging with a customer, supplier or competitor. Superior leaders surround themselves with superior management teams and superior outside professionals. Assure that all internal and external resources are engaged and committed to maximizing profitability. Consistently maintaining discipline around cost control and efficiency will assure that profitability is maximized on available sales.

——Gregory Larson is senior vice president and director of commercial banking at Brown Deer-based Bank Mutual Corp.

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Re: Wisconsin’s roads “As we work to build a world-class, thriving economy—not just in the region, but in the entire state—state policymakers must take a long, hard look at the future of our infrastructure needs and ensure we adequately invest in them.”

Wisconsin has 10 firms on the 2016 Fortune 500 list

— Waukesha County Executive Paul Farrow

Re: State’s economic development tools “Wisconsin lags in both startups and growth companies, so the state’s toolbox deserves a collection that ranges from micro-loans to grants to sufficient tax credits to accommodate growth.”

Summerfest plans to replace Marcus Amphitheater

— Tom Still, Wisconsin Technology Council

Section of Landmark mural temporarily removed for building renovation

Re: Character development in school 2016 TOP 10 AWARDS LUNCHEON The annual Top 10 Businesses of the Year program, presented by the Waukesha County Business Alliance and BizTimes Media, was held Thursday, June 23. Carrie Fix of M.E. Dey & Co., Suzanne Kelley of WCBA and Peggy Stoop of First Business BankMilwaukee network at the event.

“My conclusion: Our children will follow good behavior more closely than bad. I am always encouraged by the annual awards. Our state and country are not going to the dogs; quite the contrary. The challenge for every adult is to accept the responsibility of being a shining example to all children. Someday, those children will be adults.”

Weissgerber’s Gasthaus to close

— Richard Pieper, PPC Partners Inc.

The Waukesha County Business Alliance and BizTimes Media would like to congratulate the winners of the Top 10 Businesses of the Year. The awards luncheon was held on June 23rd at the Country Springs Hotel and recognized the 10 winning companies. Thank you to all who attended the luncheon and celebrated the success of these Waukesha County businesses.

2016 Top 10 Businesses of the Year: Best Version Media, LLC • Bruno Independent Living Aids, Inc. Century Fence Company • Felss Rotaform, LLC ITU AbsorbTech, Inc. • KS Energy Services, LLC Lakeland Supply, Inc. • Landmark Credit Union Price Engineering • Wisconsin Oven Corporation Community Distinction Award: Habitat for Humanity of Waukesha County

✰ 2016 #1 Business of the Year: ITU AbsorbTech, Inc. ✰ Sponsored by:

Presented by:

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biz news Wisconsin cities court Milwaukee Bucks’ Development League team

BY ALYSHA SCHERTZ, staff writer

ast month, The Milwaukee Bucks broke ground on a new $500 million arena while simultaneously solidifying the team’s commitment to the State of Wisconsin for the next 30 years. To sustain and maintain the growth that comes with that commitment, Bucks general manager John Hammond has publicly confirmed his desire to have a Bucks Development League team in place by fall 2017. At least six cities across the state have expressed some interest in hosting the Bucks’ future D-League team. Sheboygan, Oshkosh and La Crosse have submitted formal proposals to the Bucks. Green Bay economic development director Kevin Vonck confirmed that Green Bay did have interest in the team, but had not submitted a formal proposal at the time of this publication. And reports indicate there were, at the very least, conversations between the Bucks and the city of Racine and town of Grand Chute. Officials from Racine and Grand Chute did not return requests for comment. Sheboygan, La Crosse and Oshkosh were previously home to National Basketball League and Continental Basketball Association teams, further making the case for Wisconsin’s storied sports history and a returning fan base. Joe Wolf, Kohler native and former NBA player and Bucks assistant coach, is leading the initiative in Sheboygan as head of the Lakefront Jewel Group. Wolf Their plan is to renovate the 52,000-square-foot Sheboygan Armory, former home to the Sheboygan Red Skins NBL and NBA team. The Armory was constructed in 1942, but the bones of the structure are solid, and the renovations will once again make the virtually abandoned facility world-class, Wolf said. “The Armory is a special place,” he added. “There’s a lot of historic charm, and the lakefront and the community is a 10

The La Crosse Center, former home of the CBA Bobcats and Catbirds, could host the Bucks’ D-League team.

draw for a whole new generation of fans.” According to Wolf, the cost of the renovation is still being determined, but Lakefront Jewel Group is already in the process of raising the funds privately, through community members and corporations. Wolf estimates there is a population of approximately 1.4 million within 50 miles of Sheboygan the group could draw upon for a fan base. Similarly, the La Crosse Center, former home of the CBA Bobcats and Catbirds, has submitted a proposal for the team to anchor that pre-existing facility. “We’re confident we can deliver everything the Bucks are looking for,” said Art Fahey, director of the La Crosse Center. The Center is currently used for concerts, conventions, banquets, meetings and trade shows. The arena in the facility can seat 6,100 people, and the D-League team would be considered the anchor tenant of the facility, Fahey said. While the team can use the facility “as-is,” the Center is also on the verge of a $35 million facility upgrade. The renovations, funded with city, state and grant dollars, should be underway in about a year, he said. B i zT i m e s M i l w a u k e e

A rendering of the planned renovation of the Sheboygan Armory.

Windward Wealth Strategies is leading the initiative in Oshkosh, where its company Fox Valley Professional Basketball LLC’s proposal includes construction of a brand new multi-use facility for the team. According to Greg Pierce, president of Windward, the group has secured several potential site locations and has garnered letters of support from the City of Oshkosh, as well as “every major business” in the community. Windward plans Pierce to spend approximately $4 million of private funds to construct a 3,500-seat arena and practice facility, which would be available for community use as well.

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“We can be ready by November 2017,” Pierce said. “Once the Bucks make a decision, we can begin the process. If we’re moving dirt by March 2017 or before, we’re confident we can complete the construction before the 2017-’18 Development League season.” Windward has also “pre-sold” season tickets to a significant number of fans and submitted those numbers as part of its proposal. While it’s too early to tell what type of economic impact the Development League team would have on any one community, certainly jobs would be created and dollars would be spent. Sports and event travel is one of Wisconsin’s fastest-growing markets and plays ............................. BUCKS continued on page 13

innovations

Palm scanner could speed bank transactions Fiserv technology verifies account with vein pattern

n a few years, consumers may not need to carry a wallet to the bank. That’s a potential reality of a new biometric technology released by Brookfieldbased Fiserv Inc. for U.S. financial institutions called Verifast: Palm Authentication. The company developed the product in cooperation with Fujitsu Ltd. for its DNA core account processing platform. It uses infrared light to read the unique vein structure in a user’s MOLLY DILL, managing editor Email: molly.dill@biztimes.com Phone: (414) 336-7144 Twitter: @BizMolly

palms in a more efficient and secure authentication process. Fujitsu commercialized its PalmSecure technology in 2004 and it has been in use at Japanese banks since then, but this is the first integration of the technology into a banking platform in the U.S., said Chris Van Der Stad, senior vice president

and chief technology officer, Open Solutions at Fiserv. The technology promises to mitigate fraud, reduce transaction times and improve branch service delivery. Fiserv said it can increase authentication speed by 90 percent with Verifast because the consumer doesn’t need to find—and tellers don’t need to type in—identity verification information such as a driver’s license or account number. Deposit or withdrawal slips could be a relic of the past. The palm scan process has been better received than other biometric authentication technology, such as retina scans. Depending on their complexity, fingerprint scanners can be compromised easily, Van Der Stad said. “(Palm vein is) hygienic. You don’t have to touch something, you’re holding your hand over something,” Van Der Stad said. “What makes it so secure is the number of reference points in the actual scan of the image.” The Verifast scans five million reference points on the palm, and has added w w w.biztimes.com

security because those points are under the skin and can’t be easily copied, as with facial recognition software. Verifast was recently piloted at Gesa Credit Union in Richland, Washington. “We benchmarked our traditional process and found that it takes about 15 seconds for a member to authenticate themselves at a teller station,” said Karl Guynn, director of products at Gesa Credit Union. “Palm vein authentication takes about one second, so we’ve shaved 14 seconds off each transaction.” After an initial setup with the technology, the user’s account can be pre-loaded into the teller window by simply holding a palm over the scanner. The device takes an encrypted signature and matches it back to the photos taken when the customer enrolled. “We’re in an age of speed and fast and get in and out and so this really adds to that convenience,” he said. “In our space, where we’re trying to enable the teller to sell, to cross-sell to the consumer…this

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

Fiserv Inc. Brookfield Innovation: Verifast: Palm Authentication www.fiserv.com

enables them to be able to spend their time with the consumer in a different way than they normally would.” And there are other potential uses for the palm scan technology, Van Der Stad said. Fiserv is already working on a computer mouse embedded with the scanner to automatically verify a teller when he or she arrives at a work station. “When you think about the experience…it really is easier than pulling your phone out of your pocket,” he said. n Get the latest state business news headlines delivered to your inbox every morning. Sign up for BizTimes’ Morning Headlines at biztimes.com/subscribe.

CORRINNE HESS

real estate

Vacant land along I-43 in the town of Sheboygan.

ith record low unemployment and a potential housing crisis averted, the Sheboygan County Economic Development Corp. has shifted its focus to what residents perceive to be the region’s biggest weakness: a lack of retail. The group has been working with Tupelo, Mississippi-based The Retail Coach since April to attract either a mixed-use development or an outlet mall to the area around I-43 and Highway 42 in the Town of Sheboygan (just northwest CORRINNE HESS P: (414) 336-7116 E: corri.hess@biztimes.com Twitter: @CorriHess

of the city of Sheboygan). Sara Spicer, attraction marketing specialist with the EDC, said the town is committed to creating a tax incremental financing district or other financial incentives to get a retail development off the ground, once two retailers or two restaurants have signed on to a project. “Ideally, one developer will come in with a plan, or us and the town will develop this with the shops that are interested,” Spicer said. “We already have a few retailers interested and we’re going to do whatever we can to get them here, whether we 12

have a developer on the line or not.” If the project is a mixed-use development, Spicer would like to see a hotel and several mid- to large-box retailers and fast casual restaurants. Another option would be to create a walkable community like Drexel Town Square in Oak Creek, with a live, work and play feel, Spicer said. An outlet mall is another possibility. The region has two outlet malls, Johnson Creek Premium Outlets, centrally located between Milwaukee and Madison, and Pleasant Prairie Premium Outlets, located between Milwaukee and Chicago. If Sheboygan were to attract an outlet mall, it would be the central point between Milwaukee and Green Bay, which Spicer believes would appeal to many visitors. “We have a huge tourist population between the PGA, Ryder Cup (at Whistling Straits golf course in Kohler), Road America at Elkhart Lake and Blue Harbor,” Spicer said. “We want to make sure people have a place to eat and shop when they are here.” Sheboygan does have its fair share of retailers, including Kohl’s, Hobby Lobby, T.J. Maxx, Dress Barn, Target and Walmart. But the EDC has a long wish list for additional retailers that includes Babies“R”Us, a tween clothing store such as Justice, a DSW shoe store, Cabela’s and Trader Joe’s. B i zT i m e s M i l w a u k e e

Economic Development Corp. tries to attract retailers to Town of Sheboygan

A map of the Town of Sheboygan where I-43 intersects with Highway 42.

Retail real estate broker Don Zien, senior vice president of Colliers International Wisconsin, said if there is a significant enough retailer interested in locating in the Town of Sheboygan, a large mixeduse retail development could be possible. “It’s going to come down, to some extent, as to whether there are the roof-

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tops and leisure traffic to support it,” Zien said. “It’s a bit like Pabst Farms, where there has been hope for certain big-box and shopping developments but the demographics, and to some extent the zoning and interested users, didn’t allow it to happen—at least, not yet. There’s a reason IKEA didn’t go to Oconomowoc.”

The EDC has reached out to about 30 retailers based on suggestions from Retail Coach and has gotten interest from companies, Spicer said. Retail Coach representatives did not return phone calls. The town and the economic development corporation have a 99-acre parcel of land they are targeting for this development. Spicer said they are still in negotiations with the seller, who is “prodevelopment,” and wants to be part of the growing community. She would not say where the parcel is located, but said it is visible from I- 43. On July 14, the EDC will unveil its master plan to developers and real estate brokers. “We want to show people what this development could look like,” Spicer said. “If someone wants a bigger building, or to move a parking lot, we can do that. But we have a vision for this.” The initiative is taking place in the Town of Sheboygan because the infrastructure is already in place. The corridor has also had recent retail success with

Menards, Walmart, Texas Roadhouse and Culver’s. Construction will begin this summer on a 137,000-square-foot Sam’s Club that will open in a former Menards Self Storage Facility at the southeast corner of I-43 and County Road J in the town. The retail push comes after the Sheboygan County Economic Development Corp. spent two years working on a plan to combat the county’s housing shortage. Based on a market study, Sheboygan can accommodate 300 new units each year for the next nine years. Luxury Meadowland Villas Apartments, which are the first new apartments in Sheboygan County since 2009, recently opened. There is a less than 1 percent vacancy rate in the Sheboygan-area multifamily market. There are more than 700 new market rate or luxury apartments scheduled to open within the next year. Sheboygan County has been steadily creating 1,000 jobs per year, thanks to companies such as the Kohler Co., Sar-

2016 E D I T I O N

gento Foods Inc., Bemis Manufacturing Co. and Acuity Insurance. The county can accommodate 300 units every year for the next decade, Spicer said. There currently are three apartment developments underway in downtown Sheboygan, and Greenfield-based apartment developer Ener-Con Cos. is working on a market study to determine if it

should develop the former Optenberg Iron Works property at 1403 and 1435 S. Seventh St., just south of Blue Harbor Resort, into multi-family housing. “Now that the housing is all coming in, it’s time to move on to our next milestone, which is retail, and we won’t stop until we get what we want,” Spicer said. “That’s what the EDC is all about. We find ways to get this stuff done.” n

BUCKS........................................... from page 10

regarding the timeline for a decision, but did confirm the deadline for submitting new proposals had passed. “It is still early in the process and we are gathering all the facts necessary to make an informed decision about where this new team would be located,” Bucks officials said in a statement. “While there is no immediate timetable for an announcement, we are excited to learn more about the cities throughout the region that have expressed an interest in welcoming the Bucks’ D-League affiliate to their community.” n

an important role in Wisconsin’s tourism economy, said Stephanie Klett, secretary of the Wisconsin Department of Tourism. “We know from experience that sports marketing is successful in any economic environment because people are passionate about their teams,” she said. “Communities across Wisconsin are investing in sports travel, whether it’s hosting an amateur sporting event or building a stadium for a professional basketball team.” Bucks officials continue to be vague

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cover story

FEEDING

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

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MILWAUKEE

CITY AND BUSINESS LEADERS TACKLE FOOD DESERT ISSUE

BY CORRINNE HESS, staff writer

ost weeks, Kornisha Lymon buys her groceries

there are a lack of full service grocery stores with fresh and

at a corner market near her home at West

healthy food options. The U.S. Department of Agriculture

Chambers and North 14th streets in Milwaukee’s North

defines a food desert as a low-income area where at least

Division neighborhood.

one-third of residents live more than one mile from the

With $20, the 39-year-old mother of five is able to buy a loaf of bread, a package of bologna and a gallon of milk. Lymon would prefer to shop at the Pick ’n Save store on North 35th Street and West North Avenue, but with limited access to a car, she only gets there about once a month.

nearest full-service grocery store. But figuring out how to provide fresh food for all of Milwaukee’s residents is more complicated than a simple definition. Milwaukee has tried to tackle the food desert problem for years. With big-box and new food retailers opening

“I used to go to Lena’s, but they closed down,” Lymon

in the suburbs, including Meijer and Costco, there is

said, referring to the Lena’s Food Market at 4030 N.

a renewed interest by city officials and area business

Teutonia Ave. that closed recently. The grocery store

leaders in the issue.

operator also closed its market on West Oak Street, just

Technically, Lymon doesn’t live in a food desert. She

off West Fond du Lac Avenue, about 18 months ago. Its

lives about 10 blocks from Galst Foods, an 18,000-square-

location at Midtown Center is still open.

foot supermarket at 1622 W. North Ave.

Some areas of the City of Milwaukee, particularly on

But for various reasons, she doesn’t want to shop

the north and west sides, are in “food deserts,” where

there, instead choosing to buy $5 milk from a corner store.

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TROY FREUND PHOTOGRAPHY

cover story

Milwaukee Alderman Khalif Rainey and Sherrie Tussler, executive director of Hunger Task Force, at King’s Food Market in Rainey’s district.

LOCATION FACTORS Big-box retailers need density, large parking lots and easy access to the store. Often, that isn’t available in the central city. Retailers prefer areas with a higher median income and while low-income residents can buy food with food stamps, they lack disposable income to purchase non-essential items. If a store does open, it needs to sell its food quickly in order to make a profit. “There are about 100 different things that we look at when choosing a store, including demographics, density, education, in-home food habits, and then we lay them all on a map and certain areas glow like a beacon,” said Chris Sherrell, the chief executive officer of Fresh Thyme Farmers Market, which opened its first Wisconsin store June 8 near downtown Milwaukee and is planning stores 16

in Greenfield, Brookfield, Kenosha and Menomonee Falls. Once Sherrell has his map of glowing areas, he hires a local real estate broker to find the hot spots where a store would make the most sense. “The central city areas just don’t glow on the map,” Sherrell said. “They just don’t have the income or the population anymore. We’ve never been against it, but as a new company, we’re not up for the challenge at this point. Maybe if we open a couple hundred stores and become a billion dollar company, it would be something we could consider.” Grocery store chains have specific business models that drive volume and profit by selling products. In addition to selling the food, the stores are able to make even more money by agreeing to carry certain vendors’ products and placB i zT i m e s M i l w a u k e e

ing them in a certain areas of the store— typically called an “endcap.” “There is a lot of competition for that and in the past it was easier in the suburbs, where consumers have been more willing to buy products in the outer ring of the grocery store, where the perishables are,” said Stu Wangard, chairman and chief executive officer of Wauwatosa-based real estate development firm Wangard Partners Inc. “A lot of stores in the central city focus heavily on salty snacks and carbonated drinks.” At one time, Wangard Partners was Piggly Wiggly’s primary landlord. The company now manages six Wisconsin Piggly Wiggly stores, a Cub Foods in Minneapolis and Pick ’n Save stores in the Fox Valley, Oconomowoc, Kenosha and on the northwest side of Milwaukee. Wangard’s Freshwater Plaza development, currently under construction in Walker’s Point, will include a Cermak Fresh Market grocery store. Two chains that have been able to make it work in central cities are Aldi, the German-based global discount supermarket chain specializing in staple and household items and SuperValu, with its discount format, Save-a-Lot, Wangard said. Save-a-Lot currently has five stores in the metro Milwaukee area and is considering a sixth store in the former Lena’s at 2322 W. Oak St. The Milwaukee Common Council will consider those plans this summer. “We’re looking at two other grocery store chains, but it’s still too early to talk about,” Wangard said. “We’re not sure exactly where they are going to locate.”

CITY STRATEGY Alderman Khalif Rainey brought the food desert issue to the city’s attention last month when he directed city staff to develop an incentive to bring a large grocery store to the 7th District. Rainey’s district, which has 40,000 residents, stretches from North 20th Street to North 60th Street and from West Center Street to West Villard Avenue. The 7th District includes a Lena’s Food Market, but Rainey is hoping to attract something more transformative to anchor his community. Lena’s Teutonia location was cited by the Milwaukee Health Department seven times in 2010 for health code violations, including grease and grime on racks in the deli, meat and fish departments. In May 2015, the city documented a “severe

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rat problem” and “severe fly infestation” at the Oak Street location. Lena’s owners would not comment. “This is a humanitarian issue,” Rainey said. “I want to engage with retailers and find out what incentives it would take for them to locate in an underserved area. Whole Foods offers a program to locate a franchise in distressed areas. Let’s look at that. They’ve (provided incentives) in New York, they’ve done it in Chicago, why not here?” Working off of Rainey’s original recommendation, a Common Council committee has expanded his directive to include the entire city. Within the next three months, Milwaukee’s Department of City Development will come up with a Fresh Food Access Strategy for the Common Council to consider. The hope is to develop a plan that will increase access to affordable and fresh foods for residents across the entire city of Milwaukee by looking at food market data and trends and strategies currently being used by local and federal agencies. Incentives are a possibility, but before that is on the table, city officials have to wrap their heads around what retailers are looking for when choosing a location, said Martha Brown, deputy commissioner of the Department of City Development. “There are various initiatives around the country to attract and improve access to quality food,” Brown said. “We want to look at that and let it be a basis for our recommendations to the Common Council.” Near West Side Partners, a nonprofit organization made up of the business leaders from the largest companies located in the Menomonee Valley, has also hired Colliers International Wisconsin with the hope of attracting a grocery store to that area, as well as other commercial real estate investors.

CUSTOMER DATA In mid-June, Lymon and her 14-yearold son Larrenzo saw a truck parked outside the House of Peace Community Center at 17th and Walnut streets. Painted on the side of the truck was a logo reading “Fresh Picks Mobile Market.” They wandered inside and saw a mini grocery store. Brightly colored produce lined the front of the truck. Dairy and meat products, all priced under $6, were near the checkout counter. There were no canned items or processed foods on the truck. And thanks to a federal grant, the majority of

A map of Milwaukee County grocery stores provided by the Hunger Task Force. w w w.biztimes.com

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cover story the items were reduced by 25 percent. The Mobile Market, which is a partnership between Milwaukee anti-hunger nonprofit Hunger Task Force and the Pick ’n Save grocery store chain, makes 34 stops per month in the city’s food deserts. It has gained a following since launching in October 2015. Lymon has never seen it before. “Milk is $1.49,” Lymon says, shaking her head in disbelief as she gets off the truck. A dozen eggs cost 74 cents. The market takes food stamps, credit and debit cards. No cash is allowed. “I’m lovin’ it,” Lymon says to her son, explaining that they will come back. “The corner markets don’t have fresh produce. If they do have apples or or-

staples like ground beef, apples and bread—stuff a mom would buy for her two kids, Tussler said. They were able to get 70 percent of the items and paid 40 percent more than what they would have paid at a traditional grocery store. Next, she sent a bus to the neighborhood at 1 p.m. every Thursday throughout summer. The bus picked up residents – between six and 15 people every week. Riders were given a $10 gift card to Woodman’s in exchange for a peek at their grocery store receipt after they shopped. “They bought bottled water and candy bars and sold the items on the street,” Tussler said. “It’s entrepreneurship at its finest.” One Thursday, mid-summer, Tussler

In 1995, El Rey opened a warehouse on South 35th and West Burnham streets. As Milwaukee’s Hispanic population changed, the grocer began selling food from South America and the Caribbean. In 1999, El Rey Food Mart opened on South 13th Street and West Forest Home Avenue, and El Rey relocated the original warehouse to 1530 S. Muskego Ave. In 2007, the El Rey Super Mercado moved from its original location across the street to 916 S. Cesar E. Chavez Drive. The El Rey Family Market was opened at South 51st Street and West Oklahoma Avenue in 2011. “El Rey has always known what their customers want, which is critical for stores’ success,” Tussler said. “I mean, you

“ This is a humanitarian issue. I want to engage with retailers and find out what incentives it would take for them to locate in an underserved area.” — Alderman Khalif Rainey

anges, they’re only available in the morning,” Lymon says. “You’re better off saving money until the truck comes by.” Sherrie Tussler, executive director of the Hunger Task Force, is spearheading a campaign to collect data for city officials to use to combat Milwaukee’s food desert problem. Pick ’n Save supplies the food, Hunger Task Force the knowledge of the neighborhoods. Tussler has spent nearly 20 years at the Hunger Task Force. Before that, she worked at homeless shelters. Not much surprises her. Four years ago, Milwaukee’s Northwestern Mutual Foundation asked the Hunger Task Force to improve emergency food access to the worst food desert in the city, the Amani Neighborhood, which is bounded by 35th Street on the west, 15th Street on the east, Capitol Drive on the north and North Avenue on the south. “Most people have never been there because there is no reason to go,” Tussler said. “There are no goods or service there. No coffee shops, no stores, no library, no churches. What there is are boarded up houses, one of the city’s most failing schools and one institution.” The first thing she did was send staff members to the corner stores in the Amani neighborhood with a list of 40 things a household would need— 18

got on the bus. She needed more information. Nine people were on board and she told them it was their lucky day. She had $100 gift cards. With a little more money, Tussler could see what people would actually buy. Three young women pooled their gift cards and bought diapers and a curling iron. The majority of the others bought meat to grill and frozen meals to microwave. “Some bought fruits and vegetables, but no one has a refrigerator or stove, just a microwave and grill,” Tussler said. “This is the kind of information the Mobile Market can tell us. I know that we need five kinds of greens and smoked meat on the north side. And on the south side, not so much. Avocados, pork and chicken sell there.”

EXISTING MODELS South side residents have more access to grocery stores, thanks in large part to El Rey, a family-owned and -operated Hispanic grocery store. The original Super Mercado El Rey opened in 1978 at 1023 S. Cesar E. Chavez Drive to bring produce from Mexico to people in Milwaukee. The store was expanded three times in three years to serve the growing customer base and a warehouse was opened on South Fifth Street to make tortillas served at local restaurants. B i zT i m e s M i l w a u k e e

can be Meijer or whoever and say, ‘Here’s my food and it’s inexpensive and I’m enormous,’ or you can go, ‘I know how much to sell an avocado for and I know what my people eat.’” Two other innovative models taking their business to the north side to address the food desert issue are Outpost Natural Foods Co-Op and Pete’s Fruit Market. In October, Outpost opened a 675-square-foot pop-up store in the Innovation & Wellness Commons development at North 16th Street and West North Avenue. The tiny store is a new concept for Outpost, with owners vowing to explore a larger format store down the road if the co-op is well received by the community. In April, south side grocer Pete’s Fruit Market announced plans to open a north side location in a former 13,700-squarefoot Walgreen’s store at the northwest corner of Dr. Martin Luther King Jr. Drive and North Avenue in the city’s Bronzeville neighborhood. Juli Kaufmann, who developed the Innovation & Wellness Commons through her real estate company Fix Development, is hoping both Pete’s and Outpost will be a success because they are foregoing the old grocery store model. “Big box was predicated on huge parking lots, and of course you are never going to put that in a central city,” Kaufmann

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said. “What works in neighborhoods is a bodega, and we just don’t use that model because Milwaukee, historically, has not been dense enough.” Marquette University has been able to make people realize that two miles is too far for a grocery store, using students as an example, but there are families living on the near west side and near north side facing the same obstacles, Kaufmann said. “It all has to do with how you get your food source,” Kaufmann said. “If you live in the suburbs and you are five miles away, it’s not a desert. But if you are a mile away without a car, it’s a problem. Another thing is you have to be culturally dialed in. That is how El Rey, while more traditional, has been so successful.” Once Tussler has enough data collected from the Mobile Market, she plans to pound on the door of Milwaukee’s Department of City Development and give them the information. She believes there is great development opportunity in the central city for grocery stores – if the right model is used. “You need an entrepreneur and they will have to be able to get the food at the same pricing as Pick ’n Save,” Tussler said. “Is there a chain savvy enough to go micro? I don’t know. I would think if you want to make a pile of money, I can show you how.” Wangard believes the data will be invaluable for the city. “I don’t care if we’re talking about Kenosha, Oconomowoc or Metcalfe Park, one of the first questions I always get from someone is ‘Can you bring us a Trader Joe’s?’” Wangard said. “Each of these stores have a model and an area where their model is going to do its best. One of the chains that is the most nimble is Whole Foods, which has opened stores as small as 17,000 square feet or as large as 50,000 square feet.” Whole Foods opened an 18,000-square-foot store in Englewood, one of Chicago’s most economically depressed neighborhoods. “There are a lot of things that go into having a high-performing store. We have a Pick ’n Save store at 102nd Street and Silver Spring that has a produce area and a meat and fish area that is different than our store in Kenosha, the store in Neenah and the store in Oconomowoc—you fine tune them,” Wangard said. “And that store may be fine-tuned, too, when the demographics change. You have to keep changing the model to make it work.” n

special report

technology

Education and setup can stop a cybersecurity nightmare Wire transfer fraud a rising threat for businesses

here was a time when phishing emails were easily identifiable. Marked by broken English and an outlandish story, computer users could easily identify when someone was trying to scam them and hit the “delete” button instead. The problem for businesses now is that cybersecurity threats are becoming more sophisticated and the number of connected devices continues to rise. The threat of a cybersecurity attack is spread across all industries, from manufacturing, to retail, to health care, to banking. The best starting place for protection is to consider the unique risks for an individual business and work from there, said Mike Block, vice president, information security officer at Wauwatosa-based The Equitable Bank and president of the Information Systems Security Association’s Milwaukee chapter.

An education or training program is also a good place to start. “You have to have a knowledgeable workforce to be able to avoid some of the more common pitfalls,” Block said. Those pitfalls include ransomware, malware, phishing schemes, unpatched machines, a lack of segmentation, wire transfer fraud and stolen sensitive files. While some attacks are easier to defend against than others, Block and Mark Shelhart, Sikich LLP senior manager for incident response and forensics in security and compliance practice, say education and some basic steps can go a long way. Both said educational programs cannot be only an annual occurrence. Block said he holds them on a quarterly basis and Shelhart recommended holding them monthly. The simple advice these programs give w w w.biztimes.com

BY ARTHUR THOMAS, staff writer

users: Don’t click on links or email attachments when you’re not sure of the origin. Even that advice can fall short, though, as attackers have taken to stealing logos, spoofing email addresses and embedding links inside messages, Block said.

“Instead of trusting everything, you may have just a little edge of suspicion because you’ve seen what some of the bad stuff looks like,” Block said. Shelhart said being aware and paying attention to details are important. Even

“ Instead of trusting everything, you may have just a little edge of suspicion because you’ve seen what some of the bad stuff looks like” —Mike Block The Equitable Bank, Information Systems Security Association He recommends using real examples of scam attempts to show employees what the latest attacks look like.

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small subtleties in language can be a clue. In one case, a potential wire fraud case was stopped because the attacker, posing as an 19

Questions to consider:

• Are employees regularly educated on the latest cybersecurity threats? • Are machines serviced by outside vendors properly protected? • Should departments be segmented onto their own networks? • Are there proper protocols in place for wire transfers?

Resources:

• https://www.dhs.gov/stopthinkconnect • https://www.consumer.ftc.gov/ • https://www.us-cert.gov/ • http://www.krebsonsecurity.com/

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executive, used the word “please” and the accountant felt it was out of character and became suspicious, Shelhart said. Wire transfer fraud is among the growing cybersecurity threats, according to the FBI’s Internet Crime Complaint Center. The center says there have been more than 22,000 domestic and international victims of business email comprise, which often includes requests for wire transfers. Those victims have an exposed loss, either actual or attempted, of almost $3.1 billion, including $960.7 million for U.S. companies, between October 2013 and May 2016. The center says it has seen a 1,300 percent increase in identified exposed loses since January 2015 and victims range from small to large companies. These attacks, where a scammer poses as an executive or someone outside the company, involve a request for money to be transferred and often include some sense of urgency. In the past, the attacks involved smaller dollar amounts of less than $10,000, but Shelhart said scammers have increasingly gone after larger amounts. The best defense is to implement protocols that go outside the email chain, Shelhart said. That might involve a phone call between the parties involved or a passcode, which shouldn’t be shared via email. Shelhart said it might be best to avoid doing the wire transfer altogether, if possible. It may be inconvenient to drive 20 miles, he said, but the potential to save money and headaches is worth it. An educated and alert workforce can stop a lot of attacks, but Shelhart and Block also said the way a network is set up can go a long way in preventing problems. Block said that means having proper defensive techniques, like firewalls, and “constantly and effectively” patching operating systems. Shelhart said larger devices can pose

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a danger to a network because they aren’t always updated on a regular basis. These machines can include surgical robots, laser cutting machines, ticketing machines in a parking garage, a juke box in a bar, camera systems and card access systems. These machines are often updated and serviced by an outside vendor, according to Shelhart. It is important to build patching or updates into the contract when purchasing the device to make sure it will be handled. While the devices will often need a network connection, he said the answer isn’t to put it on the main network, but instead spend a small amount of money to set up its own network. Devices should be segmented across the organization. Shelhart said having a setup in which the accounting department and the factory floor are on the same network can cause problems. Employees may not realize they are all interconnected, but the malware or virus will be able to find its way from one area to another. Putting a firewall between different departments can help prevent and stop attacks. Shelhart said it is a lot like going to a hotel, university or large company and finding both corporate and guest WiFi networks. “You need to apply that to your (internal) network as well,” he said. Setting up slightly different networks for each department may seem like extra work, especially for smaller companies. Shelhart said smaller firms where responsibilities aren’t substantially divided up may be able to get away with not segmenting. “If you’re at the point where you’re subdividing where people sit, you should also be subdividing the firewall,” he said. At the same time, Shelhart said smaller and mid-size companies are often prime targets for attackers because they don’t have as many resources dedicated to security. n

technology

Oculus Rift is among the most expensive, but also most immersive, virtual reality devices on the market.

Business uses for virtual reality on the rise More content, cheaper viewers expected

BY ARTHUR THOMAS, staff writer

hen Quad/Graphics Inc. announced earlier this year it would be equipping 500,000 special newsstand versions of the Sports Illustrated swimsuit issue with virtual reality viewers, it may have seemed a little bit like a gimmick. But for Tim Fox, director of custom products at Quad/Graphics, the SI viewer was just a starting point. He sees potential for any number of the Sussex-based printer’s thousands of clients. In particular, he said Quad has received a lot of inquiries from clients tied to travel. Whether it is for resorts, hotels, national parks or communities, Fox said there is a lot of value in

allowing a user to be in the location before he or she travels there. A company like Milwaukee-based Harley-Davidson Inc. could use virtual reality to show how a motorcycle is made, bring potential buyers into a dealership from the comfort of their home or virtually take them along on a motorcycle ride. “You could have a virtual experience as if you were the gasoline moving through the engine,” he said. Fox also sees uses in health care, agriculture, real estate and education. Consulting firm Deloitte Global predicted virtual reality would have its first

billion dollar year in 2016. The company expects there to be multiple applications for both consumers and businesses in the long term, but cautioned that enterprise use in 2016 would likely be experimental. “Everybody is thinking a lot of great things about it,” said Kevin Wise, manager of solutions architects at Verizon, who is based in Milwaukee. The challenge is deployment of the new technology, Wise said. As equipment costs come down and the number of applications and examples grows, “that’s when you’re going to start seeing a jump in use,” he said.

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“I believe it’s going to get huge,” Wise said. “Marketing companies are going to be able to market to you as you walk through a virtual world.” Wise’s role has him working with companies on potential technology solutions. He said he’s asked about virtual reality, but the technology is “not used as much as you’d expect.” He sees potential training applications where a company can recreate a specific situation and put an employee or customer directly into it. Fox says that many companies are already shooting video for their marketing

Quality

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materials. Making the video into something that can be used for virtual reality is a natural extension, in his view. “Let it be a recruiting tool for you,” he said. The University of Wisconsin-Milwaukee College of Engineering and Applied Science is doing just that. The college partnered with virtual reality firm YouVisit to create a virtual tour that allows prospective students to see inside the university’s labs and classrooms. “We can’t just open our labs and go in, for a number of reasons,” said Sandra Nichols, the college’s associate dean and director of marketing, citing proprietary research taking place through business partnerships, along with safety and compliance issues. “This gives us an opportunity to make our labs accessible.” The college rolled out the virtual reality tour in late August 2015. There have been almost 3,000 uses of the tour. While the college is still gathering data on whether students have chosen the school because of the tour, Nichols said the college knows

it can be among the 20 to 40 interactions students use in making their decision. “We believe it’s really important for us to be at least testing new vehicles and new technologies,” she said. “We have to change with the times to be able to reach and communicate with the younger generation.” The process for putting together the virtual reality tour was similar to other promotional materials. YouVisit came to campus and took 360-degree photos of the labs over the course of two days. The company now handles the responsibility of hosting the tour. Fox believes producing content will only get easier in the coming years. With cameras already on the front and back of smartphones, he thinks it won’t be long until the cameras also shoot to the sides, up and down, potentially all at the same time. “You’ll have millions of people able to create content (for virtual reality),” he said. Both Fox and Wise see the improvement of virtual reality viewers and the lowering of costs increasing the adoption of virtual reality.

Right now, the viewers range in price from hundreds or thousands of dollars for complete systems like Oculus Rift, to $15 for holders like Google Cardboard, to Quad’s viewer, which can be inserted into magazines for a couple of dollars. The advantage to Quad’s system, Fox said, is that it can easily be sent through the mail and branding is also a possibility. Quad has already completed a second version of the viewer that assembles easier, Fox said, and he anticipates additional

Quad/Graphics worked with Sports Illustrated to include a branded viewer in 500,000 of the swimsuit issues sold on newsstands.

versions will be developed in the future. “Like any new products, you just continue to evolve them and develop them better,” he said of viewers. n

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strategies

Malcolm X photographs Muhammad Ali after his defeat of Sonny Liston.

Leadership lessons learned from Ali A fighter, in and out of the ring

t was the summer of 1996. My late husband, John Waldbauer, our son, Jonathan, and I traveled to Atlanta, Georgia for the Centennial Olympic Games. I was a reluctant participant, wishing for a beach vacation instead. And yet once there, I was lifted by the energy, the spirit and the sheer joy of being in a global community for three weeks, attending two athletic events each day in the presence of people who celebrated skill no matter the country. The opening ceremony held magic and wonder that mesmerized the audience with international song and dance, mime and acrobatic cyclists riding high above the crowd. Yet no spectacle in that arena will ever be remembered with such awe as the surprise lighting of the Olympic torch by Muhammad Ali. When the platform floor opened and he emerged dressed in the white uniform of the USA athletes, body shaking from his battle with Parkinson’s disease, the crowd erupted into a symphony of cheers. Many of us wept and collectively we held our breath as Ali took a few unsteady steps to have his torch lighted so that he, in turn, could light the universal Olympic light signaling the beginning of the Games. His

courage and determination fueled his ability to light the Olympic torch. Twenty years later, we recently witnessed the memorial service celebrating Muhammad Ali’s extraordinary life. The Olympic torch travelled through time and once again he lit up our spirits and our hearts, knowing the service he created would bring together our global community once again. One of Ali’s lessons for us is: “A man who views the world the same at 50 as he did at 20 has wasted 30 years of his life.” Muhammad Ali did not waste the years of his life. At age 12, his new bike was stolen. He was enraged and ready to fight. He reported the theft to a police officer, who managed a boxing ring. The officer took Ali under his wing and encouraged him to learn the sport of boxing. We know the story. Ali needed to fight. He needed a release. Boxing was an outlet that held discipline, focus and commitment. Ali was criticized for what was described as his arrogance. He often proclaimed that he was the greatest; that he was beautiful; that he was the champion. His voice was heard in the midst of impossible racism. The message that he w w w.biztimes.com

KAREN VERNAL LEADERSHIP received at that time in our history as a black child, adolescent and young adult was the message to all people of color: “You will never be equal; you are not beautiful; you cannot win.” Ali countered those voices with his own and then he lived into the message. In 1960, he won a gold medal in boxing at the Olympics in Rome. He went on to become the world champion. Ali did not waste the years of his life. His transformation included a name change, symbolic of his new faith life as a young adult. He let go of his birth name, Cassius Clay, to become Muhammad Ali in his conversion to Islam.

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As a conscientious objector to the Vietnam War, Ali refused to serve in the U.S. Armed Forces. He was sentenced to five years in prison, but remained free as the case was appealed to the U.S. Supreme Court, which overturned his conviction. During that dispute, Ali was stripped of his boxing license and world champion title. In 1974, he regained his world title and in 1981, he retired from boxing. Ali was tireless in his service to others. In the publication: “Look to the Stars: the World of Celebrity Giving,” Emma Pickford writes: “(Ali) devoted his life to helping promote world peace, civil rights, cross-cultural understanding, interfaith relations, humanitarianism, hunger relief and the commonality of basic human values. His work as an ambassador for peace began in 1985, when he flew to Lebanon to secure the release of four hostages. Ali also has made goodwill missions to Afghanistan and North Korea; delivered over $1 million in medical aid to Cuba; traveled to Iraq to secure the release of 15 United States hostages during the first Gulf War; and journeyed to South Africa to meet Nelson Mandela upon his release from prison. His recent attempt to free two American hikers held captive in Iran reinforces his tireless commitment to promoting freedom, tolerance and humanity around the world.” Ali lived the leadership message of his quote: “Service to others is the rent you pay for your room here on earth.” As his transformation continued, he lost his voice to Parkinson’s disease. From using his fists, to using his voice, to becoming a presence, Ali taught us that, “Impossible is just a big word thrown around by small men who find it easier to live in the world they’ve been given than to explore the power they have to change it. Impossible is not a fact. It’s an opinion. Impossible is not a declaration. It’s a dare. Impossible is potential. Impossible is temporary. Impossible is nothing.” Consider how these lessons and so many more from Muhammad Ali might inspire you to live more deeply, with courage and integrity. n Karen Vernal is the president of Vernal Management Consultants LLC, a Milwaukee-based leadership and organizational firm dedicated to “igniting the spirits and skills of leaders.” The company is one of two firms in the nation to be certified in Emotional Intelligence through the Institute for Health and Human Potential. For more information, visit www.vernalmgmt.com.

strategies

Are you a vitamin or a virus? Make sure your organization stays healthy

rganizational health has been a topic of close study for decades. An online search of the term yields more than 3 million results, ranging from information about why it is the ultimate competitive advantage, to methods of measurement, tips for improving organizational health, and of course, a slew of experts on the topic. With so much research and so many words written about organizational health, why are so many workplaces unhealthy? Part of the reason may be that when experts study large systems, theories emerge having to do with big picture variables like industry dynamics, changing demographics, emerging technologies and burgeoning regulation. All of these things impact organizational health, of course, but when the picture is so large, few feel responsible—or empowered—to do anything about it. Just as no snowflake in an avalanche ever feels responsible, it is easy for individuals to shrug off personal responsibil24

ity for the way their actions contribute to the working environment. What about you? When it comes to the health of your organization, are you a vitamin or a virus? Vitamins add nutrients to a system. In organizations, such vitamins might include clear thinking; straightforward communication; strategic vision; willingness and ability to give and receive feedback; a respect for differences; and having the ability to pick up the work pace when times demand it or slow down to allow others to absorb new information. Viruses make systems sick. They can be devilishly difficult to detect—remember the Stuxnet computer virus—while doing incredible damage. Organizational viruses come in many forms, from poor leadership to toxic team members to misaligned objectives to careless communication practices, including rudeness and grandstanding. Small irritants can be easy to ignore until suddenly, they create a crisis. There is a quick and simple way to B i zT i m e s M i l w a u k e e

SUSAN MARSHALL ORGANIZATIONAL HEALTH begin to understand the vitamins and viruses at work inside your organization. Listen to the conversation that surrounds you. What are the subjects being discussed? What tones of voice can you detect? Are people cutting each other off? Is there a lot of “Yes, but” rebuttal to ideas or points of view? Does gossip flow freely? When people talk about who did what to whom, who messed up, who is being

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favored or protected; when they complain about lousy equipment, lazy co-workers, nasty customers or uncooperative suppliers, viruses are at work. It is true that people do obnoxious things, make mistakes, and seek favor and protection. It is annoying when equipment malfunctions, co-workers miss deadlines, customers get testy and suppliers have priorities that sometimes differ from yours. That’s real life. But when conversations simply catalog these grievances without a corresponding discussion about how to alleviate them, viruses multiply. The organization becomes toxic. If you’re looking at a bigger picture, you can miss these sure signs of trouble. Conversely, when you hear people talking about customer interests, exploring new product or system ideas, investigating better ways to operate, encouraging risk-taking and offering constructive feedback, you know vitamins are in play. And these exchanges are not always gentle or patient in nature—some can be quite animated and even contentious. But listen closely. The focus is on improvement rather than blame. Individuals share what they know and accept that others have alternative viewpoints honed through different experience. They stay with discussions long enough to think and learn together. They admit to changing their minds when they receive new information. They push and shove one another intellectually to get to a better outcome. Listen to your organization over the next week. Notice the subjects discussed and the way people speak. Do you hear words that are clipped, signaling impatience or frustration? They may be spreading a virus of fear. Take note of the way your colleagues express their point of view. Where it creates tension, let them know. Where it serves to correct and encourage others in a positive way, thank them for doing so. As the world grows darker with the viruses of cynicism, violence and fear, our organizations need an infusion of nutrients. The way you show up and engage your co-workers has a lot to do with the health of your organization. Resolve to be a strong, powerful vitamin. 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.

strategies

You are the CEO of your life To millennials, work is more than just a job

hese are the words spoken by one millennial to another during what sounded very much like an encouraging coaching session. This conversation occurred at Starbucks, and I was close enough to two passionate young professionals to capture some of their thoughts. It seems Millennial B is unhappy and unfulfilled in her current role. Millennial A was just not hearing this. She said: »» “I worry about you. Life is so short, it’s valuable.” »» “Do not work for some micromanager who doesn’t understand you.” »» “This is not your company. It’s not your passion.” Millennial B said that when she joined this particular company, she intended to stay there for two years. Yet she was finding her current situation difficult. Millennial A encouraged her by saying, “Hey, we have connections all over. I can help you. We can find you something else.” She went on to say, “I’m not going to let people tell me how to live my life. You shouldn’t either.” As a side note, I also picked up from Millennial A that she loves what she is doing. She is very passionate and very willing to work hard. She also shared that she makes a lot of money. The one thing she appeared to not be willing to negotiate is flexibility in her schedule. It seems she has an event coming up. She is excited to celebrate her golden birthday in style… by taking three weeks off for a substantial trip. This is a big deal for her. She went on to share with her friend, “I will turn 30 only one time. I’m currently in a position to take time off to celebrate this. I do not have kids yet. Once I do, I will not be able to do this again.” She said that she went to her boss and essentially said, “I’m going to do this. You can grant me this opportunity or I’m prepared to turn in my two weeks’ notice.” She was very pleased to share with her friend that her boss responded with “I totally get it. We can do this.” Now, I’m obviously not privy to just how they worked this out. I do know, however, from listening to her recount

this scenario that she is very pleased. She went on to share with her friend, “I’m learning to be direct about what matters to me. We can always go somewhere else.” I realize that many baby boomers are struggling with this type of mindset. But this young professional’s leader seems to understand the importance of retaining a valued employee. On this same day, I was visiting with a prospective client and the owner of the company and the HR manager were talking about their desire to do some reinventing in their longstanding “policies.” The story: Recently, an employee was on a phone call while working on the line. The manager of this employee approached him to restate the cell phone policy. “You’ll have to put your cell phone in your locker until break.” Ten minutes later, the employee quit. The response of the business owner was spot on: “We have to revisit our cell phone policy because this is not going to go away. We have to find a way for our employees to keep their phones with them.” Another leader who understands the importance of retaining valued employees. I get asked this question often: “Are millennials really that different?” Yes. I just came across a fantastic report from Gallup titled “How Millennials Want to Work and Live.” I encourage you to look this report up. The chairman and chief executive officer of Gallup, Jim Clifton, said “Millennials will change the world more decisively than any other generation. Millennials are altering the very social fabric of America and the world. Defined by their lack of attachment to institutions and traditions, millennials change jobs more often than other generations – more than half say they’re currently looking for a new job.” The essence of this Gallup report is, w w w.biztimes.com

“The Six Big Changes Leaders Have to Make” 1. Millennials don’t just work for a paycheck—they want a purpose. 2. Millennials are not pursuing job satisfaction—they are pursuing development. 3. Millennials don’t want bosses—they want coaches. 4. Millennials don’t want annual reviews—they want ongoing conversations. 5. Millennials don’t want to fix their weaknesses—they want to develop their strengths. 6. And, one of the most important discoveries…“It’s not just my job— it’s my life.”

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A LETA N O R R IS GENERATION Y Organizations and leaders need to take action…do something with the information we are continuing to learn about this generation. Enjoy! n Aleta Norris is a co-founding partner of Brookfield-based Living As A Leader, a leadership training, coaching and consulting firm. You may send questions to her at anorris@livingasaleader.com. To read all of her columns, visit the knowledge portal at www.livingasaleader.com.

Call for Nominations! BizTimes Media presents the third annual awards program to salute southeastern Wisconsin’s best corporate citizens and most effective nonprofit organizations. The awards will shine a light on excellence in philanthropy and nonprofit leadership. The recipients of the awards will be saluted at a breakfast program on November 3rd, 2016. Nominate the people and for-profit organizations who are making a positive difference in the community by donating their time, talent and treasure. Nominate the nonprofit organizations that are making the region a better place to live, work and play. Self-nominations also are encouraged!

Nominate Today! www.biztimes.com/npawards

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biz connections CA L E NDAR

NONPROFIT DIRECTORY

The Metropolitan Milwaukee Association of Commerce and VISIT Milwaukee will host Business After Hours on Thursday, July 21 from 5 to 7 p.m. at the The Kimpton Journeyman Hotel, 310 E. Chicago St. in Milwaukee. Event attendees will enjoy complimentary hors d’oeuvres and a cash bar on the building’s rooftop, as well as a tour of the Third Ward’s new hotel. Cost is $10 for MMAC members and $20 for non-members. Registration and more information is available at web.mmac.org/events.

SPOTLIGHT

The ALS Association Wisconsin Chapter will host Fastball & Fanatics & Family: Brewers vs. Cubs vs. ALS on Friday, July 22 at 4:30 p.m. at Miller Park’s east parking lot. This is the association’s fifth annual Chasin’ a Cure tailgate event. Attendees can enjoy live music by Chasin’ Mason and food from local supporters before heading in to Miller Park for the Brewers vs. Cubs game. All proceeds go toward helping patients with ALS and their families cope with the disease. Cost is $60 for the tailgate and a general admission game ticket or $30 for a tailgate only ticket. Tickets and more information are available at www.alsawi.org. The U.S. Green Buildings Council of Wisconsin will host a Better Buildings Challenge Networking Breakfast on Thursday, July 28, from 8:30 to 10:30 a.m. at the 411 Building, 411 E. Wisconsin Ave. in Milwaukee. Susan Johnson and Susan Ertel from Riverview Realty Management Wisconsin and Rose Buss from the Milwaukee Environmental Collaboration Office will discuss the green building movement and Milwaukee’s role in the Better Buildings Challenge. The event includes breakfast. Cost is $15 to $25. Registration and more information is available at http://bit.ly/28S9OL0. North Shore Bank will host Taste of Lake Country on Friday, July 29 from 5 to 10:30 p.m. and Saturday, July 30 from 4 to10:30 p.m. at the Pewaukee lakefront, 161 W. Wisconsin Ave. in Pewaukee. Event attendees can enjoy music from headliners “The Toys” and “The See the complete calendar of Love Monkeys” and food from local Lake Country restaurants. upcoming events & meetings. The festival is free of charge. More information is available at tasteoflakecountry.com. www.biztimes.com

BIZ NO T ES Prasser-Kleczka Funeral Homes Jeff Kleczka, funeral director and owner of PrasserKleczka Funeral Homes, has been elected president of the Wisconsin Funeral Directors Association. The WFDA includes more than 350 Wisconsin funeral home members, 18 board members, and three fulltime employees. Sworn in as president on June 15, Kleczka will collaborate with the board to maintain the association and represent WFDA in political issues concerning the funeral profession. PrasserKleczka Funeral Homes are located on South Howell Avenue and South 27th Street in Milwaukee.

Diversified Insurance Solutions Matt Weimer, director of strategic solutions at Diversified Insurance Solutions in Brookfield, was recently named the 2016 Raymond ‘Skip’ Hanson Agent of the Year by the Independent Insurance Agents of Wisconsin and was honored with an “UBBIE award” as Partner Firm Staff Member of the Year by United Benefit Advisors. The Agent of the Year Award annually honors one insurance professional who is exceptionally committed to the insurance business, to IIAW and to the community. The Member of the Year Award honors an employee at a UBA partner firm who is dedicated to UBA’s collaborative efforts, while using UBA’s resources to better serve clients.

Medical College of Wisconsin Dr. Peter Frommelt, professor and interim chief of pediatrics in the division of cardiology at the Medi-

cal College of Wisconsin, was honored with the 2016 Steve Cullen Healthy Heart Scholar Award. The $25,000 award honors a junior MCW scientist committed to advanced cardiovascular research. The award will assist Frommelt in researching heart function in children during the time the heart is relaxed and filling with blood. Proceeds from the annual Steve Cullen Healthy Heart Club Run/Walk fund the award. The run/walk honors Steve Cullen, a former Milwaukee alderman who died of sudden cardiac arrhythmia at age 40.

Swimming Pool Services Inc. Pewaukee-based Swimming Pool Services Inc. was honored with a 2016 Guildmaster Award for the company’s commitment to service excellence, based on customer surveys by an independent rating agency. GuildQuality, a customer satisfaction surveying company, annually grants the Guildmaster Award to home building, remodeling and contracting companies that demonstrate service excellence. When determining award recipients, GuildQuality considered the percentage of customers who would recommend the business and the percentage of customers who responded to the survey. Swimming Pool Services’ recommendation rate from its customers exceeded 90 percent. The company specializes in building custom pools, spas and outdoor living areas and providing services and supplies to maintain clients’ facilities.

To have your business briefs published in a future issue of BizTimes Milwaukee send announcements to briefs@biztimes.com.

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United Way of Greater Milwaukee & Waukesha County 225 W. Vine St., Milwaukee (414) 263-8100 | www.UnitedWayGWMC.org Facebook: Facebook.com/UnitedWayGMWC Twitter: @UnitedWayGWMC LinkedIn: Linkedin.com/company/united-way-of-greater-milwaukee-&-waukesha-county Instagram: United Way GWMC

Year founded: 1909 Mission statement: United Way of Greater Milwaukee & Waukesha County changes lives and improves our community by mobilizing people and resources to drive strategic impact in education, income and health. Primary focus: United Way of Greater Milwaukee & Waukesha County fights for the education, income and health of every person in our four-county region. We have a stake in creating a healthy, prosperous community. After all, we all win when a child succeeds in school, when a neighborhood turns around, when families have good health and workers have solid jobs. Number of employees at this location: 84

»» Nicole Angresano, vice president, community impact »» Linda McFerrin, vice president, resource development »» Brian McKaig, vice president, marketing & communications »» Craig Nuechterlein, vice president, information technology & processing »» Jayne Thoma, vice president, volunteer engagement »» 2016 campaign leadership (co-chairs) »» Larry Blanton, senior vice president, MetalTek International »» Jacqueline Herd-Barber, community volunteer »» Richard Meeusen, chairman, president and CEO, Badger Meter Inc. »» Steven SaLoutos, executive vice president & division manager, U.S. Bank

Key donors: The following organizations support United Way at the $1 million-plus level: »» Johnson Controls Inc. »» Northwestern Mutual Life Insurance Co. »» Aurora Health Care »» Rockwell Automation Inc. »» Fiduciary Management Inc. »» We Energies »» BMO Harris Bank »» Robert W. Baird & Co. Inc. »» Harley-Davidson Inc. »» GE »» MillerCoors LLC

Ways the business community can help your nonprofit: When your business partners with United Way of Greater Milwaukee & Waukesha County, you instantly get access to numerous ways to connect your employees to the communities where they live and work. Whether your employees want to invest in their community through charitable giving or volunteerism, we have the experience and expertise to advise you in employee giving strategies. Let us help make connecting your employees with the local community easy. You can learn more by visiting: www.unitedwaygmwc.org/For-Companies

Executive leadership: »» Mary Lou Young, president and chief executive officer »» Filippo Carini, chief operating officer

Key fundraising events: »» Philanthropic 5 Awards, Thursday, Aug.18 »» United Way Campaign Kickoff, Wednesday, Aug. 31

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biz connections PER SO NNE L F I L E

■ Banking & Finance GSF Mortgage, Brookfield, hired Tim Lammers as a loan originator. Lammers has more than 16 years’ experience in the mortgage industry. First Bank Financial Centre, Oconomowoc, added Scott Wisniewski to its team as vice president, commercial lender. He has more than 21 years of industry experience and specializes in commercial real estate, commercial industrial, lines of credit, and helping to identify additional needs, such as cash management solutions to help businesses grow.

■ Building & Construction Jeremia Johnson, a third-generation construction industry worker, has joined Milwaukee-based Design Group Three Inc. as a project manager. He has several years of hands-on field experience and is also well-versed in computer aided drafting and online management software. Mortenson Construction’s Brookfield office hired several new employees for teams throughout the state. They include: Savannah Wehinger, estimator; Ashley Schmelzer, accounting support; Mary Ellen Resch, project administrative assistant; Bill Overton, superintendent; Jon Mortag, project manager; Kevin Ingalls, project engineer; Chris

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

Hernandez, superintendent; Ashley Frank, assistant project manager; and Dain Anderson, field engineer. VJS Construction Services, Pewaukee, hired Lizzy Frantl as a safety engineer.Prior to joining VJS, Frantl worked for a general contractor in Illinois.

■ Health Care

business development.

■ Manufacturing Macromatic Industrial Controls, Menomonee Falls, hired Jamie Bargenquast as national sales & marketing manager. Bargenquast has expertise in sales, marketing and product management.

Leslie Tector has been named vice president and general counsel for Children’s Hospital of Wisconsin, Wauwatosa. She has more than 20 years of experience providing legal counsel to health care entities and industry leaders. She comes to Children’s from Quarles & Brady LLP, and prior to that she worked with other law firms and health care organizations in the greater Milwaukee area.

■ Nonprofit Girl Scouts of Wisconsin Southeast announced

Carita Twinem,

community volunteer and former vice president of tax at Spectrum Brand Holdings Inc., has been elected chair of the 2016-’17 board of directors.

■ Professional Services

■ Legal Services Milwaukee plaintiff personal injury law firm Warshafsky, Rotter, Tarnoff & Bloch has added attorney Krista G. LaFave Rosolino as an associate. Mallery & Zimmerman S.C., Milwaukee, announced that Deb Krukowski has joined the firm as a shareholder. Krukowski will continue her practice of employment law and related litigation. Additionally, Jonathan Sacks has joined the firm as an associate. Sacks will add depth to the firm’s litigation team. He concentrates his practice on commercial and other civil litigation.

Betsy Smith, CPA, MST, has been promoted to vice president of finance at Association Acumen LLC, Menomonee Falls. She was previously executive director of finance. Also, Adam Snow has been promoted to director of meetings. Additionally, Beth Klipping, MBA, has been named the new executive director of Women in Ophthalmology, managed by Association Acumen, and Mike Mathy has been named executive director of the Federation of Clinical Immunology Societies, also managed by Association Acumen.

■ Public Relations & Marketing Trivera Interactive, Menomonee Falls, has added Christina Steder as vice president of client strategy. She has more than 15 years of experience in consumer product, professional service and nonprofit marketing, as well as brand strategy and client service. Steder previously served as president of Clear Verve Marketing.

■ Technology TLX Technologies, Pewaukee, hired Bottoni

Marina Oberholtzer as

Harlan

Lori Bottoni was recently named vice president of marketing, supply chain and business development at Pewaukee-based Enterforce Inc. She has overall responsibility for marketing and communication functions and oversees the organization’s supply chain, including supplier vetting, onboarding, contract negotiation and administration. Additionally, Randall Harlan was recently promoted to senior vice president, strategic solutions, marketing and

a marketing assistant. Oberholtzer has experience in both customer service and sales. Superior Support Resources, Brookfield, hired several new employees. They include: Lana Radewan, network operations manager;

Shruthi Routhu, Gurmeet Singh Kowshik Rachapudi, software engineers; and Brian Krug and Brian Drier, systems engineers.

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BIZTIMES AROUND TOWN n

biz connections

Bucks celebrate arena groundbreaking The Milwaukee Bucks, their fans, business leaders and numerous local and state politicians participated in a recent groundbreaking ceremony to celebrate the start of construction of a new arena in downtown Milwaukee for the NBA team. 1 Former Bucks owner and former U.S. Sen. Herb Kohl, Bucks mascot Bango and Bucks president Peter Feigin. 2 Bucks co-owner Jamie Dinan and Milwaukee Tool group president Steve Richman.

3 State Rep. Peter Barca, Kohl and state Assembly Speaker Robin Vos.

4 Bucks player Jabari Parker is interviewed by the local media. 5 Dinan, Wes Edens and Mike Fascitelli. 6 Tim Sheehy, president of the Metropolitan Milwaukee Association of Commerce and Milwaukee County Executive Chris Abele. 7 Fascitelli, Gov. Scott Walker and former Bucks player Junior Bridgeman, owner of Manna Inc. 8 Gale Klappa, non-executive chairman of WEC Energy Group, and Feigin. 9 Fans gather on the future arena site after the groundbreaking ceremony. Photos by Andrew Weiland

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

biz connections

n GLANCE AT YESTERYEAR VOLUME 22, NUMBER 8 JULY 11 - 24, 2016 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120 PHONE: 414-277-8181 FAX: 414-277-8191 WEBSITE: www.biztimes.com CIRCULATION E-MAIL: circulation@biztimes.com ADVERTISING E-MAIL: ads@biztimes.com EDITORIAL E-MAIL: andrew.weiland@biztimes.com REPRINTS: reprints@biztimes.com PUBLISHER / OWNER

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

Mary Ernst mary.ernst@biztimes.com DIRECTOR OF STRATEGIC INITIATIVES

Jon Anne Willow jonanne.willow@biztimes.com ADMINISTRATIVE ASSISTANT

Sarah Sinsky sarah.sinsky@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

The Pabst Theater

SALES & MARKETING DIRECTOR OF SALES

Linda Crawford linda.crawford@biztimes.com BUSINESS DEVELOPMENT EXECUTIVE

Maribeth Lynch mb.lynch@biztimes.com SENIOR ACCOUNT EXECUTIVE

Amber Stancer amber.stancer@biztimes.com ACCOUNT EXECUTIVE

Kevin Gaschk kevin.gaschk@biztimes.com ACCOUNT EXECUTIVE

Maggie Pinnt maggie.pinnt@biztimes.com ACCOUNT EXECUTIVE

Christie Ubl christie.ubl@biztimes.com

PRODUCTION & DESIGN GRAPHIC DESIGNER

Alex Schneider alex.schneider@biztimes.com ART DIRECTOR

Shelly Tabor shelly.tabor@biztimes.com

INTERN REPORTER

This photo, taken circa 1940, shows The Pabst Theater at North Water and West Wells Streets. The theater was built in 1895 by architect Otto Strack. Renovated on several occasions to both modernize the theater and preserve its historic elements, the Pabst is still a venue for concerts and performances today. —This photo is from the Milwaukee Public Museum’s Photo Archives collection. Additional images can be viewed online at www.mpm.edu.

Maredithe Meyer maredithe.meyer@biztimes.com

Independent & Locally Owned — Founded 1995 —

COMME NTA R Y

Waukesha water decision is big win for entire region

he decision by the Great Lakes governors to approve Waukesha’s request to tap Lake Michigan for its water supply is not only a big win for that city’s residents, but also a big victory for all of southeastern Wisconsin. The Flint, Michigan water crisis has demonANDREW WEILAND Editor BizTimes Milwaukee

strated that a city’s supply of quality water is not something to take for granted. With a population of 70,000 residents and a large number of employers, Waukesha is a vital part of the region’s economy. But the city’s water problems had cast a cloud over its future. Waukesha’s water has high levels of radium, which can increase the risk of getting cancer. The city is under a court 30

order to bring its water supply within federal standards. Waukesha made a compelling case that Lake Michigan water was the best option for its own water needs and for the environment. Drilling additional wells could have hurt area wetlands, like the Vernon Marsh, while using water from Lake Michigan will allow for rehydration of the deep aquifer, which itself draws water from the lake. Concerns about Waukesha’s proposal were overblown. Some said allowing Waukesha to use Lake Michigan water would open the door for Great Lakes water to be shipped to far-away dry areas, like Las Vegas. But that’s ridiculous and strictly forbidden under the 2008 Great Lakes Compact. That compact says Great Lakes water can only be used by communities within the Great Lakes basin. The only exception is for communities, like Waukesha, that lie outside the basin but within counties that straddle the subconB i zT i m e s M i l w a u k e e

tinental divide that serves as the boundary of the basin. To access Lake Michigan water, Waukesha had to go through a rigorous years-long review process. The community had to show it had no viable alternative. It will be difficult for any community to gain approval for a Great Lakes withdrawal. It sure wasn’t easy for Waukesha. Waukesha will return its treated wastewater to Lake Michigan via the Root River. Some Racine officials, including Mayor John Dickert, have complained, but it’s hard to understand how treated water could cause any significant problems. Now, Waukesha must get to work on planning the infrastructure to bring Lake Michigan water to its residents. The water will be piped to Waukesha from Oak Creek. That is a coup for Oak Creek, which will gain additional revenue from supplying water to Waukesha. It is also a huge missed opportunity for Milwaukee, which had a chance to be the water

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supplier but tried to play hardball with Waukesha and fumbled it. Oak Creek officials seized the opportunity. If the Great Lakes governors had denied Waukesha’s bid, it would have called into question why the Great Lakes Compact allowed communities like Waukesha to apply for Great Lakes water. Hopefully, opponents of the Waukesha bid refrain from taking legal action so cleaner water can flow through Waukesha faucets as soon as possible. n

ERICH SCHROEDER PHOTOGRAPHY

the last word

Technical college graduates can bring value to your company Kaylen Betzig is the president of Waukesha County Technical College in Pewaukee. Human resources departments can increase their candidate pool simply by being open to conversations about position requirements, she says. “Tens of thousands of college students across the state have recently graduated, including nearly 1,800 from Waukesha County Technical College. “As the economy improves, local employers are increasingly looking for highly-skilled workers who can hit the ground running on day one. Yet when I meet with employers, they maintain their difficulty filling positions in high-demand fields like information technology, health care and engineering. My first question to them is always, ‘Does your application require a four-year degree for this position?’ If the answer is yes, my follow-up is, ‘Why?’

More often than not, it’s a combination of ‘That’s really up to our human resources department’ and simply ‘Because it’s required.’ Week after week, I continue to have this same conversation with employers who haven’t yet discovered one of the best-kept secrets in the state: the power and value of Wisconsin Technical College graduates. “Our students are highly-skilled, engaged in our communities and loyal to our state—in fact, 98 percent of WCTC graduates stay in Wisconsin and 88 percent are employed in the Milwaukee-Waukesha metro area. Our curriculum is driven by employers through their service on our advisory committees, so you can be sure our graduates have the hands-on skills you need. “If you do require a four-year degree, know that WCTC graduates can transfer to several Milwaukeearea universities, like Marquette University, Milwaukee

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Kaylen Betzig President Waukesha County Technical College 800 Main St., Pewaukee Industry: Education Employees: 1,500 www.wctc.edu

School of Engineering, Cardinal Stritch University and several others. We encourage lifelong learning for our students—and you should, too, as their success translates to yours. “The secret’s out. This summer, hire a technical college graduate.” n

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

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