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WITHOUT RACING, ‘AMERICA’S LEGENDARY OVAL’ BECOMES CONCRETE WASTELAND

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WHEN PUSH COMES TO SHOVE, COMPANIES ARE INVESTING IN EQUIPMENT WHAT TO EXPECT IF YOUR BANK IS ACQUIRED SEEKING YIELD IN A LOW-INTEREST, SLOW-GROWTH ECONOMY

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Save the Date: November 3, 2016

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2016

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.

Corporate Citizenship Award Categories Nominate the for-profit organizations and people who are making a positive difference in the community by donating their time, talent and treasure. Self-nominations also encouraged! • • • • •

Corporate Citizen of the Year Next Generation Leadership In-Kind Supporter Corporate Volunteer of the Year Lifetime Achievement

Nonprofit Organizations, Leadership & Support Team Award Categories Nominate the nonprofit organizations that are making the region a better place to live, work and play. Self-nominations also encouraged! • • • •

Nonprofit organization of the year (Small & Large Categories) Nonprofit Collaboration of the year award Nonprofit Executive of the Year Social Enterprise

Nominate Today! | www.biztimes.com/npawards | Nomination Deadline Closing Soon!

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inside

September 5 - 18, 2016 S P E C I A L R E P O R T:

BA NK ING & F IN A NCE 19 Coverage includes expert insight about where the smart money is invested right now, information about what to do when your bank is acquired and an update on equipment lending trends.

HIGHLIGHT S Political Beat

Trump reaches out to African-Americans.

Made in Milwaukee

Design Fugitives combines art and architecture.

Book Review

‘Parachuting Cats Into Borneo: And Other Lessons from the Change Café.’

Nonprofit News

Bader Philanthropies chief hopes new HQ sparks development on north side.

5 Minutes With…

Roland Wikstrom, the new president and COO of Smart Choice MRI.

S TR ATE GIE S Family Business David Borst 23 Generation Y Aleta Norris 24 Leadership Karen Vernal 25

COV E R S T ORY

Milwaukee’s Empty Mile

BIZ CONNECTIONS Nonprofit Directory Spotlight 26 Personnel File 27 BizTimes Around Town 29 Commentary 30 The Last Word 31

Without racing, ‘America’s Legendary Oval’ becomes concrete wasteland ON THE COVER: The Milwaukee Mile on the grounds of Wisconsin State Fair Park in West Allis. — photo by Troy Freund Photography

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 12, September 5 - 18, 2016. BizTimes Milwaukee is published bi-weekly, except two consecutive weeks in December (the third and fourth weeks of December) by BizTimes Media LLC at 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120, USA. Basic annual subscription rate is $42.00. Single copy price is $3.25. Back issues are $5.00 each. Periodicals postage paid at Milwaukee, WI and additional mailing offices. POSTMASTER: Send all UAA to CFS. NON-POSTAL AND MILITARY FACILITIES: send address corrections to BizTimes Milwaukee, 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120. Entire contents copyright 2016 by BizTimes Media LLC. All rights reserved.

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lthough shareholders of both Glendale-based Johnson Controls Inc. and Cork, Ireland-based Tyco International PLC voted to approve the $16 billion merger of the companies, Johnson Controls shareholders voted to oppose the “golden parachute” compensation for the company’s executives if they are terminated following the merger. About 64 percent of Johnson Controls shareholders who voted on an advisory basis opposed the compensation plan for the company’s named executive officers. The golden parachute compensation would only be paid if the executive officer experienced a Johnson Controls qualifying termination immediately following the completion of the merger. The amounts would be paid in a lump sum severance payment of three times the executive’s annual cash compensation, plus pro rata performance bonuses and the payout of additional pension and retirement benefits they would have accrued over the two-year period following the merger. According to the company’s most recent proxy statement, chief executive officer Alex Molinaroli would be in line for $74.2 million in total compensation, $43.4 million of which would be in cash, if he were terminated after the merger. Molinaroli already is receiving a

$20 million payout in cash and stock as a result of the merger under his change of control agreement. And that’s not to mention his usual salary. Molinaroli’s base salary for 2016 is set at $1.6 million. Last year, his total compensation was $21.7 million with stock awards and bonuses. Brian Stief, executive vice president and chief financial officer, would get $19.2 million if terminated post-merger. He will retain his role in the new organization. William Jackson would get $24.4 million in compensation in a golden parachute. He will serve as executive vice president and president of Building Efficiency for the new company. Bruce McDonald is in line for a $19.2 million golden parachute, $1 million of which would be in cash. McDonald’s cash severance benefit is one year of base salary as of the termination date. He has been named chief executive officer of Johnson Controls’ automotive seating spinoff, Adient. Beda Bolzenius, who was scheduled to serve as chief operating officer for Adient but left Johnson Controls in March, is not entitled to compensation or benefits related to the merger. Shareholders voted on whether the compensation laid out in the proxy should be paid or become payable to the

SHELLY TABOR

Shareholders oppose Johnson Controls’ golden parachutes

Johnson Controls complex in Glendale.

named executive officers. “The proposal gives Johnson Controls’ shareholders the opportunity to express their views on the merger-related compensation of Johnson Controls’ named executive officers,” according to the proxy statement. Johnson Controls spokesman Fraser Engerman did not answer questions about whether the company would change the compensation plan as a result of the opposition vote by shareholders. “The compensation proposal is similar to other deals of this size,” he said. “Many of the compensation features were already in place before the merger negotiations started. The compensation elements were just one of many factors considered by the board and were part and parcel of this

transformative deal for shareholders.” According to the proxy, “Consummation of the merger is not conditioned on approval of the Johnson Controls advisory compensation proposal. Because the vote is advisory in nature only, it will not be binding on either Johnson Controls or the combined company. Accordingly, to the extent Johnson Controls or the combined company is contractually obligated to pay the compensation, the compensation will be payable to the Johnson Controls named executive officers, subject only to the conditions applicable thereto, if the merger agreement is approved and adopted and the merger consummated, regardless of the outcome of the advisory vote.”

——Molly Dill

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

Facebook Ads: Being there Facebook recently announced that, along with even greater control over ad preferences, it will begin showing ads on desktop to those using ad blockers – a strong indication of Facebook’s dedication to relevant ads. Now is a good time to examine your dedication to your own ads by considering two basic questions.

When are they there? To answer this, you might look at Facebook Insights to see when the majority of your fans are online. However, you don’t always want to advertise to your current audience, or even people like them. If you’re looking to expand your market, look beyond the status quo. Use a service like Sumorank.com for insights about competitors that appeal to your desired 4

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

demographic, including which days and times see the best engagement. Always inspect posting habits and content, but if you find people chat most about related products on Thursdays at 8 p.m., try testing your ad in that timeslot.

When are you there? Ads are an investment, so be available to reply to those you’ve paid to reach, including after hours. This is especially important for new products and less familiar services that invite questions or skepticism. If necessary, consider adding a weekend community manager or running multiple, short campaigns rather than leaving long-running ads unattended. An ad with “no one home” sacrifices the unique social opportunity of

S eptember 5 - 18, 2 016

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Facebook, and unaddressed comments serve as a shorthand vetting mechanism. An aging list of comments without replies may be all your prospect needs to see before deciding to pass. Conversely, timely, informative replies build brand confidence and positively affect purchasing decisions. Improve your Facebook outcomes by considering the basics of “being there,” both by reaching people when they are most open to your messaging and by being purposefully present once you’ve initiated contact with your relevant ad.

——Jeanette Pham (@jeanettepham) is an independent social marketing & engagement specialist in Milwaukee.

leading edge COFF E E B R E A K

POLITIC AL BEAT

Trump reaches out to African-Americans What was the smartest thing your company did in the past year? “Partnering with Colliers International on funding the Public Policy Forum’s report ‘My Generation: Surveying the Views of Millennials in Metro Milwaukee.’ “This new workforce is driving change in all aspects of the workplace – from the actual design of the interiors to creating a culture that is attractive to top talent. What was especially great about this study was that it focused on millennials in southeastern Wisconsin, making it a great tool to share with the companies we serve. Additionally, this process has been an excellent learning opportunity for our team. Having ‘lived’ the research, we can help companies make smart decisions about their office design to attract top talent from this new workforce.”

What’s new at your company? “We are transitioning our marketing strategy to better showcase Schroeder Solutions’ services. While this is still in the developmental stage, it’s something I’m very excited about as the marketing director. We have historically presented our services in four distinct capabilities categories. We have introduced new services over the last several years based on our clients’ needs, but our marketing has not really reflected that in a concise way. Starting in the fourth quarter of 2016 we will be revamping our marketing material to showcase three divisions – interiors (design/ office furniture), service (move management/facility maintenance) and logistics (coordination of furniture, fixtures and equipment projects nationwide).”

industry in order to educate our clients and partners. Companies want to know: Will a new office design really have a positive effect on my employees/business? Each company has specific nuances that need to be taken into consideration when answering this question and our challenge is to help our clients understand what will work best for their environment and then lead them through the process.”

What’s the hottest trend in your industry? “The biggest trend I see happening in our industry within southeastern Wisconsin right now is one that has been building over the last few years – a focus on mobility in the office. More than ever, companies are adding height-adjustable capabilities to their workstations and private offices. From incorporating sit-to-stand workspaces in their remodel and adding desk-top solutions to existing furniture, to creating community treadmill workstations – companies are seeing the value in creating healthy workplaces.” “Another trend that I personally love is office furniture that is less ‘office-like’ and more residential in nature. One of the products in this category is Teknion’s Upstage, which has a refined design that emulates high-end residential furnishings and allows for user personalization.”

Do you have a business mantra? “I don’t know if it’s a mantra, but I am a people person much more than a business person. I feel that if employees are happy in their position at a company, they will perform at their best – so my focus is on creating the best company culture possible, knowing that the rest will fall in line when employees have fewer obstacles.”

Do you plan to hire any additional staff or make any significant capital investments in the next year? “We plan to add to our design and sales teams in the near future.”

What will be your company’s main challenges in the next year? “I see our main challenge as continuing to stay on top of the trends in our

U.S. Republican presidential nominee Donald Trump, at a recent rally in West Bend, delivered his most aggressive call yet to woo African-American voters, vowing to restore law and order only days after a fatal police shooting of a black man in Milwaukee sparked violence in the city’s Sherman Park neighborhood. Trump accused his Democratic rival, Hillary Clinton, of “bigotry” and vowed to protect the jobs of minorities from immigrants. “I’m asking for the vote for every African-American citizen struggling in our society today who wants a different and much better future,” Trump said. “Jobs, safety, opportunity, fair and equal representation: We reject the bigotry of Hillary Clinton which panders to, and talks down to, communities of color and sees them only as votes – that’s all they care about – not as individual human beings worthy of a better future.” Trump held three events in Milwaukee. Then he traveled 45 minutes outside of Milwaukee, which is 40 percent black, to deliver his appeal to African-American voters in West Bend, a community that is 95 percent white. He spoke before an almost entirely white audience. “A vote for her (Clinton) is a vote for another generation of poverty, high crime and lost opportunities,” Trump said. “With each passing Trump attack, it becomes clearer that his strategy is just to say about Hillary Clinton what’s true of himself,” Clinton spokeswoman Jennifer Palmieri said. Trump said critics of police “share in the responsibility for the unrest in Milwaukee and other places in our country.” “The war on our police must end and it must end now,” Trump said. “The war on police is a war against all peaceful citizens.”

From a business standpoint, who do you look up to? “I follow a lot of female entrepreneurs on Instagram – two of note are the founders of Nena & Co. and Freshly Picked. It is incredibly encouraging and inspirational to see how these women created amazing and powerful brands while juggling their family/personal life, as well.”

Amanda Stein Director of marketing Schroeder Solutions 1920 S. Calhoun Road, New Berlin www.schroedersolutions.com Industry: Commercial interiors Employees: 60 Family: Husband, Steve Stein; Son, Holden (5); Stepson, Ethan (19) w w w.biztimes.com

S eptember 5 - 18, 2 016

BY TH E NU MBERS

22 . 5 million

The State of Wisconsin could award up to $22.5 million in tax credits to Milwaukee-based Direct Supply Inc., which is planning to expand its headquarters and hire 800 employees over the next seven years.

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JSTONE / SHUTTERSTOCK.COM

BY GINGER GIBSON, of Reuters

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MA DE I N M I LWA U K E E

Design Fugitives combines art and architecture

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

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Multi-Chamber Networking

ABOVE: A grouping of copper tubes lit with LED strips hang in the atrium of the 833 East building.

The Waukesha County Business Alliance will host a Multi-Chamber Networking Program on Thursday, Sept. 29, from 4:30 p.m. to 7 p.m. at the Sheraton Milwaukee Brookfield Hotel, 375 S. Moorland Road in Brookfield. The once-a-year program draws businesses from chambers around Waukesha County and allows them to network with each other. Cost is $15. For more information or to register, visit www.waukesha.org/events.

BELOW: The copper tubes were fabricated with hundreds of pieces cut out.

based Design Fugitives pitched to Irgens for the building was intended to be a counter to the sometimes seemingly random elements of life. “Life is complex, yet in many ways is knowable,” the project statement said. Had circumstances been different, it is possible Paul Mattek and his partners at Design Fugitives would have been coming up with plans for buildings like 833 East, not creating works of art to hang in its atrium. But when Mattek and the six other original partners in the company were coming out of architecture school in the middle of the Great Recession, their options were limited. Those limitations, however, ultimately freed the group to pursue other lines of work that capitalized on their design skills and their desire to create things. “We wanted to set up a hybrid practice,” Mattek said. The group wanted to design and build things, while also bringing comprehensive special and product thinking to projects. They didn’t want their work to just be a piece of art; they wanted it to be a part of the building, Mattek said. The reality of the first few years as a company wasn’t quite as glamorous, though. Mattek said the group did graphic design, web design, rough carpentry, tiling and pretty much whatever they could to stay afloat. The group started to grow around 2011 and now has pieces throughout southeastern Wisconsin, the Midwest, and even in Hong Kong. Design Fugitives also is bidding on projects in Washington, D.C. and Kuwait City. Some partners left, new employees joined and in the past year the company has added five employees. Mattek said more will probably be added in the near future as the workload continues to grow. Design Fugitives found its way through experimentation, building its own tools, like a CNC router or plasma cutter, from a variety of components. One of the company’s specialties is using architectural software to create rule-based geometric patterns on paneling. The result can be one continuous pattern spread over a 30-by-40-foot wall. As a result, Design Fugitives does a lot of work for atriums and hospitality settings. Design Fugitives works with wood, metal and plastic. A lot of processes are completed in-house but sometimes, like when 300 copper tubes need to be fabricated with a

SEP

Walk in the main entrance of the new 833 East office building in downtown Milwaukee and you’ll be greeted by 300 copper tubes with LED lights held together by steel cables in a way that’s meant to seem random, yet very organized. “It kind of reminds me of the business process that we go through in real estate development, which is chaos until it isn’t,” said Mark Irgens, chief executive officer of development firm Irgens, which developed the 833 East building. The piece the team at Milwaukee-

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‘Parachuting Cats Into Borneo And Other Lessons from the Change Café ’ Design Fugitives 160 S. Second St., Milwaukee Industry: Commercial art Employees: 10 www.designfugitives.com complex series of cuts, the team looks elsewhere. With time, the company has been able to refine its practice, learning how to experiment and build new tools. Mattek said Justin White, another partner in the business, is “an encyclopedia of how to make things” while Twan Tran, a third partner, heads up efforts in digital fabrication and leveraging computers as tools for design. Design Fugitives also looks to push its technical capabilities whenever possible. “Our clients are coming to us more and more with more technically challenging design problems where it makes sense to have something like a robotic arm,” White said. He said the group hopes to be in a bigger facility within a few years. While the company is growing, the partners said they don’t want to lose the entrepreneurial spirit that got them where they are. “Keeping that studio feel, I think, means we’re going to stay a certain size,” Mattek said.

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

S eptember 5 - 18, 2 016

In recent years, business leaders have been given countless tools to make change in business and social settings, yet two out of every three change efforts fail to achieve their desired result. Named after a classic tale of unintended consequences, Parachuting Cats into Borneo, change management experts Axel Klimek and Alan Atkisson offer crisp, concise and targeted advice for success. The authors help readers move away from agonizing over immediate problems toward taking action, identifying collaborators, focusing at the right level for their cause, and aiding others in pursuing their change. Klimek and Atkisson draw from their decades of helping corporations, networks, governments, and NGOs reach their change goals to demonstrate how to use system-based change tools to their maximum advantage. “Parachuting Cats Into Borneo” is available at https://800ceoread.com for $19.96.

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THE GOOD LIFE

Roland Wikstrom

A passion for wine

the new president and COO of Mequonbased Smart Choice MRI, which has built a clinic network on a flat fee model, in which it provides an outpatient MRI for $600 or less.

When he was 24, Jason Wedner, general manager of Rare Steakhouse in Milwaukee, tasted a wine that changed his life: a 1983 Bertani Amarone. Now 40, he can still recall the flavors. “It’s so beautiful,” he said. “It’s so rich and decadent. It’s like a deep, garnet-red in color. The aromas are cherries, sour cherries, vanilla, a little bit of spice; it’s definitely a dry, full-bodied wine. The lush, velvet tannin. Brown sugar, a little bit of fig, maybe. It was just so well put together. Acidity, tannins, really just balanced well. One of the most enjoyable wines even to this day I’ve ever had.” Until that point in his life, Wedner had been a fan of wine. It was a part of his family culture. On his mom’s side, his grandparents were from Italy, and on his dad’s side they were from Poland. He started tasting small sips of wine at a young age. But after he tasted the Bertani Amarone, wine became his passion. Wedner is a certified sommelier through the Court of Master Sommeliers, an organization formed to improve beverage service standards, particularly when it comes to pairing wines with foods. Wedner is on the second of four levels of wine expertise with the organization and plans to obtain certification as an advanced sommelier this spring, on his way to one day becoming a master sommelier. It’s a distinction only 230 people have achieved since the organization was formed in 1977. When Wedner is not helping restaurant patrons find the perfect wine to pair with their meal at Rare, he’s tasting his own wine at home. Wedner has amassed 200 bottles in his private cellar.

What has made Smart Choice MRI’s model so successful? “I think about it in two ways: We’re living in an age of the informed consumer. People are really demanding to know what costs, quality and conveniences are available to them for medical services. We here at Smart Choice are leading this trend in retail medicine, providing transparency and an exceptional consumer experience.” “More importantly is, why that works is we’ve got an unwavering focus on the patient experience. We’re focusing on what we do and what we do exceptionally well is the patient experience. That is the real differentiator – it’s not the price point, it’s the patient experience.”

——Ben Stanley

Wedner

You put your

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Bader Philanthropies chief hopes new HQ sparks development in Harambee Bader Philanthropies, one of southeastern Wisconsin’s largest foundations, announced it will move its headquarters from the Historic Third Ward to King Drive in Milwaukee’s Harambee neighborhood. The new headquarters will be in a central city neighA rendering of Bader Philanthropies’ planned headquarters. borhood west of Riverwest and south of Williamsburg Heights in which Bader Philanthropies has already invested nearly $20 million over the years in the form of grants and program-related investments. The organization plans to renovate a two-story building built in 1927 at 3318 N. Martin Luther King Jr. Drive, build a small addition and move into the new facility by the summer of 2018. In an interview with BizTimes, Bader Philanthropies president and chief executive officer Dan Bader explained the philosophy behind the move. “I think the idea of locating in neighborhoods that we serve and we fund is really important for philanthropy,” Bader said. “I think it’s something more foundations should certainly consider, not only here in Milwaukee, but around the country, as well.” Bader said the organization is hoping the project will become a catalyst for future projects in the area, where development has been sparse and slow, even as cranes rise

Port Washington State Bank

Port Washington State Bank plans to open a new branch in Thiensville in May 2017. The Port Washington-based company will build a 3,650-square-foot building for the branch at the corner of Main and Spring streets. Construction will begin in October.

——Corrinne Hess over downtown in the distance. He said the organization, which has invested heavily in workforce development programs, will use the construction project as an opportunity to create jobs for neighborhood residents. “Hopefully we’ll be able to bring more people into the area and spark development … keeping in mind very much that people live there; people are happy living there,” Bader said. “We want to be a good neighbor. They should have a strong say in what they want their neighborhood to become.”

——Ben Stanley

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innovations Aurora’s Hepatitis screenings could become new preventative care model

Aurora Health Care

Program uses electronic medical records to target high-risk patients

ittle was known about the insidious liver virus before the early 1990s, but for years it was spread through blood transfusions and organ transplants. In 2014, Dr. Ajay Sahajpal, a transplant surgeon who oversees the Abdominal Transplant Program at Aurora St. Luke’s Medical Center in Milwaukee, saw its devastating effect on the livers of two recently-retired patients.

but before widespread screening of blood transfusions and organ transplants began in 1992, it often worked its way into the veins of unsusSahajpal pecting members of the baby-boom generation who were receiving medical treatment. It is now a leading cause of liver diseases and the most common reason behind liver transplants among baby boomers. Sahajpal, who emigrated to the U.S. from Canada, began working for Aurora in 2008 after completing a fellowship at the prestigious Mayo Clinic in Rochester, Minnesota. He wanted a way to identify the disease in patients earlier so he could treat them before it became terminal. With his two liver cancer patients in mind, he developed an innovative screening program using the hospital network’s electronic medical records system that is now being adapted to screen other conditions and could become a model for the future as the industry shifts toward preventative care. Since it launched in December 2014, Aurora doctors and nurses have tested around 35,000 patients for the disease, many of whom didn’t know they were

BEN STANLEY (414) 336-7121 ben.stanley@biztimes.com Twitter: @BizTimesBen

“They were diagnosed with cancer and I couldn’t do much about it,” he said. “They were too far gone.” The cause of their liver cancer: Hepatitis C. It’s a liver virus that, without treatment, can cause severe damage to the organ over many years, eventually resulting in cirrhosis, failure or cancer. Since most people who have it don’t show any symptoms — the Centers for Disease Control and Prevention estimates between 70 and 80 percent of those infected are asymptomatic — it often goes untreated until it’s too late. Today the virus is often spread among drug users who share needles or syringes,

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at risk. More than 600 have tested positive. They are now receiving treatment. Aurora is adapting the screening model internally. A program based off the Hepatitis C screening protocol was launched this summer to screen patients for abdominal aortic aneurysm, a bulge on the wall of the body’s main blood vessel that, like a ticking time bomb, eventually will burst. Within two months, it has already diagnosed several patients with the condition. “A lot of stars aligned at once when we came up with this program,” Sahajpal said. A few different factors were at play. Aurora had recently installed a new medical records system — from Veronabased Epic Systems Corp. — that Sahajpal knew could be used to identify patients in the Aurora network who were at high risk for Hepatitis C. At around the same time, new medications started hitting the market that were far more effective than previous treatments, which meant diagnosing the disease early could make a substantial difference in a patient’s future. To cap it off, Aurora’s leaders had been discussing moving toward a preventative care model in the wake of the Affordable Care Act. The idea clicked while Sahajpal was walking to a meeting with St. Luke’s vice president of operations, Bradley Kruger, and Aurora’s vice president of strategic collaboration, Laura Spurr, to discuss the transplant program. He pitched the idea to them, and they quickly set him up with a project team to develop the program. “An idea that I floated out there off the cuff at a meeting in September of 2014 was operational in December of 2014,” he said. Here’s how it works: If a patient is at high risk for the disease, meaning he or she meets certain criteria set out by the CDC, then the pa-

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Milwaukee Innovation: Screening patients for diseases using electronic medical records www.aurorahealthcare.com

tient’s electronic health record is flagged. The next time that patient goes in for an annual checkup or routine appointment with his or her primary care doctor, an alert will pop up on the doctor’s computer screen that the patient is at high risk for the disease. The doctor will then recommend the patient get screened. If the patient tests positive and is asymptomatic, he or she will be hooked up with specialists to treat the virus and get a liver evaluation. If the damage caused by the disease is severe, the patient may start looking into transplant or cancer treatment options. “Given the changes this country is facing with health care, where we have to have a shift toward population health and preventative medicine, this stuff is the kind of thing that will help,” Sahajpal said. “The more patients (for whom) we can prevent the disease process from progressing or getting to the point where they need complex health care, the better it is for everyone. This is the wave of the future.” Aurora has begun implementing its Hepatitis C screening protocol at its partner community organizations around the city, including 16th Street Community Health Centers, the Aids Resource Center of Wisconsin, The Milwaukee Health Department and Walker’s Point Community Clinic. Sahajpal spoke about the model at the American Medical Group Association’s Institute for Quality Leadership conference in 2015. n

real estate

The Kimpton Journeyman Hotel opened in the Third Ward on June 29.

A rendering of the Westin Hotel being built in downtown Milwaukee.

Downtown market continues to add hotel rooms, fueling oversupply concerns

ne of the most highly underutilized office towers on one of the busiest corners in downtown Milwaukee has been sold to Drury Southwest Inc. and is expected to be converted into a 200-room hotel. The fact that that the Missouri-based company is considering opening a luxury property at the First Financial Centre, 700 N. Water St., is another sign the city’s hotel market is booming. Milwaukee welcomed San Francisco-based Kimpton to the Third Ward in June. CORRINNE HESS P: (414) 336-7116 E: corri.hess@biztimes.com Twitter: @CorriHess

But it also has some people questioning when the downtown area might reach too much supply for the city’s hotel room demand. Drury Southwest plans on evaluating the market for a few years before deciding if it should move forward. But if it does, the Drury, along with the three other new

hotels planned in downtown Milwaukee, would add a total of 624 more rooms to the neighborhood. Since 2012, 730 hotel rooms have been added to downtown Milwaukee. Increase that number to 1,111 rooms if you count the 381-room hotel at Potawatomi Hotel & Casino that opened in 2014 in the nearby Menomonee Valley. A 200-room Westin Hotel is currently being built just west of the 833 East Michigan building and Bear Development recently began work to convert the Button Block building at 500 N. Water St. into a 94-room Homewood Suites by Hilton hotel. Choice Hotels International Inc. purchased a parking lot at 503-521 N. Plankinton Ave. in January, and is planning a Cambria Hotels & Suites on the property, which is typically about 110 rooms. A company spokesman would not return emails asking when construction would begin or if that project is still planned. With the opening of the 158-room Kimpton Journeyman Hotel on June 29, there are 4,930 rooms downtown, up w w w.biztimes.com

from 3,951 in 2010. Despite the additional rooms, the occupancy rate has not taken a hit. In fact, through June 2016, the occupancy rate at the 29 hotels downtown was 66.1 percent, up 4.3 percent from the first six months of 2015, according to data compiled by hotel market data firm STR Inc., based in Hendersonville, Tennessee. The average daily rate also has increased 3.8 percent, from $126.97 per day during the first six months of 2015 to $131.77 per day through June 2016. SpringHill Suites by Marriott opened a 150-room hotel at the corner of Fourth and Wells streets on July 5. However, those rooms were not included in the data compiled by STR. As of right now, the Milwaukee hotel market is doing very well, but if the downtown area continues to add hotels at this pace and does not retire any of the older properties, the occupancy rate will begin to falter, said hotel industry analyst Greg Hanis, president of New Berlin-based Hospitality Marketers International Inc. One of the indicators of a hotel’s mar-

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ket performance is its absorption rate, or how fast a property begins to make money once it opens. Normally, the maximum amount of time should be three years, Hanis said. The absorption rate in the Milwaukee market from 2010 to 2014 was 7.3 months. Over the past two years, the absorption rate has doubled, to 15 months. Working the numbers, Hanis added 624 more rooms to the mix (if the Drury, Westin, Homewood Suites and Cambria Hotels & Suites all are built) and found the absorption rate becomes two years and nine months. “Most of the time, developers start to get skeptical when you reach just over two years,” Hanis said. “Once you reach the three year threshold, you start seeing an impact on occupancy and it has a tendency to pull down rate increases and has an overall effect on the market.” The older hotels in the city will be hit the hardest if the market hits oversaturation, Hanis said. Newer properties, including the Kimpton, The Iron Horse Hotel in Walker’s Point and the Milwau11

real estate kee Marriott Downtown would fare better, he said. “This is a unique market because across the United States, we’re seeing more prudent development (in other cities) where people are backing off and lenders are more cautious about going into markets that are getting overbuilt,” Hanis said. What could serve Milwaukee better than four new hotels is one large hotel, Hanis said. The city’s largest hotel is the Hilton Milwaukee City Center with 729 rooms, owned by Milwaukee-based The Marcus Corp. Marcus also owns The Pfister and the InterContinental, both in downtown Milwaukee. With a combined 1,257 rooms in the market, the company has the most supply and has been vocal in recent years in opposing subsidies for new hotels downtown. Joseph Khairallah, chief operating officer for Marcus Hotels, said that while additional supply has been absorbed by the market to date, continued supply

growth will depend on continued economic growth for the area. “We are concerned that any additional hotel supply will be challenging without additional demand drivers for the market,” Khairallah said. “We are also in agreement with many of our community leaders for the need of an expanded convention center capable of handling larger citywide conferences. These conferences would benefit our community as they would translate into increased local spending and additional tax dollars.” The average size of Milwaukee’s hotels is 170 rooms, which Hanis said is small for a downtown urban center and limits diversity in the market. “Milwaukee needs a 750- to 1,000room headquarter hotel to attract large conventions,” Hanis said. “The city has good air service and the (room) rates are not oppressive. Milwaukee could be very competitive to go after the group travel market, but you just don’t have the diversity (in downtown hotel size) to bring in a 3,000- to 4,000-person conference.” n

2016 E D I T I O N

SpringHill Suites by Marriott opened a 150-room hotel at the corner of Fourth and Wells streets on July 5.

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cover story

Milwaukee Mile

WITHOUT RACING, ‘AMERICA’S LEGENDARY OVAL’ BECOMES CONCRETE WASTELAND BY CORRINNE HESS, staff writer

he roar of Indy cars once thrilled young and old at the Milwaukee Mile, but these days the only thing capturing anyone’s attention is the amount of money still owed on the now quiet West Allis track.

The Mile’s storied history made “America’s Legendary Oval” an institution on southeastern Wisconsin’s sports and

cultural scene for more than 100 years. But lawsuits and debt, fallouts with promoters and the overall decline of racing itself has left the Mile without a major racing event this year and nothing on the books for 2017. Although some have not given up hope, there is no sign that racing will ever return to the track. The last organized race at the Mile, which once hosted racing legends Mario Andretti, Rusty Wallace and A.J. Foyt, was the now defunct Milwaukee IndyFest in July 2015. w w w.biztimes.com

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cover story

ABOVE: The Milwaukee Mile from West Greenfield Avenue and South 79th Street looking north. LEFT: A rendering of West Allis' redevelopment vision for the Mile, from the same view, at West Greenfield Avenue and South 79th Street, looking north over a re-opened Honey Creek. RIGHT: A rendering of West Allis' redevelopment vision for part of State Fair Park, including the Milwaukee Mile, from I-94, looking south.

“Racing is dead (at the Milwaukee Mile), but everyone is afraid to say it because talk radio will kill you,” said John Stibal, West Allis community development director. Vacant land is precious in landlocked West Allis, where the 56-acre racetrack and grandstand sits, encompassing more than one-quarter of the 190-acre Wisconsin State Fair Park. To the north of the Mile, along I-94, sits a parcel of the most highly visible land in Milwaukee County just east of the busiest freeway interchange in the state. During the 11 days of the Wisconsin State Fair, that concrete stretch is used for parking and the midway. In the fall, a temporary Halloween store in a giant inflated pumpkin sits on the site and faces the freeway, with 148,000 cars passing by it daily. The rest of the year, the site along the freeway is an ocean of unused concrete, other than the eastern portion that is used as an RV Park, which provided $401,568 to State Fair Park in revenue last fiscal year. The portion of the State Fair property along the freeway lies in the city of Milwaukee, while the rest of the fairgrounds is within West Allis. The underutilized land along the freeway and the lack of racing at the 14

Milwaukee Mile raises questions about the future of those sites. There are at least three competing visions for the future of the Mile and the State Fair Park land along the freeway. The city of West Allis included a “grand vision” for State Fair Park in its 2030 comprehensive plan. The bold project includes working with the city of Milwaukee to redevelop 127.5 acres of the park, including the Milwaukee Mile site, into a mixed-use development that would include a public plaza, 390,000 square feet of retail, 1.9 million square feet of office and 200,000 square feet of destination entertainment. The city of Milwaukee would like to see a plan in place for the parcel along the interstate in its jurisdiction, so if a development opportunity presents itself, the necessary parties are prepared. Popular Swedish furniture retailer IKEA hoped to open its first Wisconsin store on the site and spent more than a year negotiating with representatives from the state, the fair, Milwaukee and West Allis in 2014 and 2015 before ultimately walking away from the deal. Instead, IKEA announced in May it would open a store in Oak Creek (see sidebar on page 18). The Wisconsin State Fair Park board, still saddled with nearly $12 million in B i zT i m e s M i l w a u k e e

debt from the $19.1 million addition and renovation to the Milwaukee Mile’s grandstand in 2002, is hoping to bring racing back to the track. The oval opened as a private horseracing track in 1876 and was later purchased by the Agricultural Society of the State of Wisconsin to create the permanent Wisconsin State Fair Park site. The Mile hosted its first dirt-track automobile race in 1903, designating it the oldest operating motor speedway in the world. By the 1930s, the track was hosting open-wheeled races and by 1947, it became a tradition to race there on the weekend immediately following the Indianapolis 500. NASCAR began racing at the Mile in 1984, and by 2002, it became clear the track needed upgrades to continue to attract NASCAR races. NASCAR’s truck series and minor league stock car circuit held races at the Mile. From the get-go, the $19.1 million grandstand renovation project appeared to be doomed. Two days before the start of the 2003 racing season, the State Fair Park board announced it was terminating its racing contract so the Milwaukee Mile could be managed and promoted internally. A private consulting firm hired in

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2000 by State Fair Park projected the new grandstand would generate a net loss of $197,500 in the first year of operation but would report a net gain of $363,000 by the second year, which would increase to $722,400 by the ninth year. Those assumptions were based on selling the naming rights for the grandstand for $10 million, hosting six major events each year and collecting concession revenue averaging $25 per person at each event. The naming rights were never sold. According to a financial audit of State Fair Park conducted in September 2003 by the state Legislative Audit Bureau, the six major events per year goal had been difficult to achieve. The industry average for concession revenue is only $6 to $13 per person, according to the report. State Fair Park incurred a net loss of more than $341,700 in the 2002 racing season. During fiscal year 2015-’16, State Fair Park generated $346,733 on race track events by renting out the track and 35,000-seat facility, $78,267 less than it budgeted. That year, State Fair Park paid the state $3.2 million in debt service on the Mile and the 200,000-square-foot Wisconsin Exposition Center, which was built for $37.8 million in 2002 and still has

about $13.1 million in debt on it. The Expo Center generated $3 million in revenue for the fair in 2015-’16, bringing in the second highest amount of revenue for State Fair Park, behind the actual 11-day event, which netted $19.87 million in fiscal 2015-’16. Total State Fair Park revenue in fiscal 2015-’16 was $25.2 million. In March, the State Fair Park board sold section YY of the Milwaukee Mile bleachers on the government surplus auction website GovDeals, removing about 1,100 seats at the end of the track. Former State Fair Park executive director Rick Frenette, said he would have liked to see the racetrack removed and the space used for expanded fair operations, but the political ramifications were too difficult to overcome. “Politicians convinced other politicians this would make millions of dollars but that didn’t happen,” Frenette said. “This is an old tradition and there are a few thousand diehard race fans left. No one is going to be the one to step up and say, ‘Tear it down.’ In the corporate world, this would be an easy thing. You just have to look at how much money you are losing and give up. But in the political world, that doesn’t happen.” Frenette ran the Wisconsin State Fair

for six years before being fired by the State Fair Park board of directors in May for giving about 30 employees pay increases. John Yingling, Wisconsin State Fair Park board chairman, said the decision to tear down the Mile or use the land for something other than racing is not as easy as many people imagine. If State Fair Park destroys the track, the

beginning in 2025. Yingling recently formed three committees to look at specific issues regarding the fair: land and property, racing and auctions. He is serving on both the land and property committee and the racing committee. Yingling believes there is a good chance the Milwaukee Mile can attract

(the racetrack).” Racing hasn’t just slowed down at the Milwaukee Mile. Other races across the country have seen attendance decline. NASCAR stopped releasing attendance figures in 2012. That year about 140,000 people attended the Daytona 500, down from 182,200 in 2011. IndyCar racing has also had to fight to stay relevant with de-

“Politicians convinced other politicians this would make millions of dollars but that didn’t happen.” — Rick Frenette, former State Fair Park executive director

debt owed to the state to build the grandstand must be paid back in full, and without another revenue option in the pipeline, that isn’t feasible, Yingling said. The debt on the Mile will be paid off by 2030. Payments fluctuate slightly, but between 2017 and 2023, the State Fair will make an annual payment to the state of $1.94 million on the grandstand. Payments decrease substantially for the final seven years of debt service, to less than $100,000 w w w.biztimes.com

races in the Xfinity Series or Menards ARCA Racing Series, which are minor league NASCAR racing series. “We lost a race this year. We thought we’d have Andretti (Sports Marketing as a promoter), but Indyfest ended,” Yingling said. “It’s a little over $1 million to get (an IndyCar race). It’s pay to play. We know we’re behind the eight ball, but there is history here, and the debt. The thing about it is, we’re not going to retire

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clining television ratings and decreasing sponsorship. Tim Osterbeck, organizer of Save the Mile, a group of about 1,200 people formed in 2008 to bring attention to the track, said there is still some optimism regarding the Mile because the property is state-owned. “For good or bad, that offers some level of protection,” Osterbeck said. “The problem is, the State Fair board is just lost 15

cover story

HISTORY OF THE MILWAUKEE MILE 2002 1891 1876 A one-mile oval track is built for horse-track racing.

The Agricultural Society of the State of Wisconsin purchases the land to create Wisconsin State Fair Park.

in the woods because they are fair people and successful business people who don’t know much about racing. Auto racing is a specific breed.” Another issue is the differing opinions on what is best for the Mile and grandstand itself, Osterbeck said. NASCAR doesn’t want to race at a venue that doesn’t have a garage nearby where pit crews can fix the cars. The Mile doesn’t have a garage. “This goes back to the 1980s,” Osterbeck said. “(Former Wisconsin Gov.) Tommy Thompson said we’re going to com16

1903 The Milwaukee Mile begins hosting auto races.

1930s

1929-1967

Grandstand is rebuilt, replacing original grandstand built in 1914.

Tom Marchese promotes races at the Mile and the track prospers.

pletely rebuild the facility and do all of this amazing stuff, but over time, everything withered away. That’s still how it has been, even this year; something could have been done to save the IndyCar race for 2016. It’s just a lot of missed opportunities.” Gov. Scott Walker declined to comment on the future of the state-owned Milwaukee Mile. Walker’s spokesman referred all questions regarding the Mile to the Department of Administration. “The grounds just hosted another successful Fair and for the fourth consecutive year drew more than 1 million people,” B i zT i m e s M i l w a u k e e

1980

1984

The first race sanctioned by Championship Auto Racing Teams is held at the track.

NASCAR makes its debut in Milwaukee with the Busch Late Model Sportsman series.

said Steve Michels, spokesman for the department. “For 165 years, the State Fair has been a celebrated Wisconsin tradition and the state will continue to work with the Fair to ensure its growth and success in the future.” Michels declined to comment on the future of the Milwaukee Mile specifically. Stibal doesn’t buy the argument that the track needs to be preserved until the debt is paid off. “That’s a procedural issue between the State Fair and the state. If there isn’t anybody sitting in those seats to generate rev-

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$19.1 million in upgrades begin at the track and are completed in time for the 2003 Centennial Season. The new grandstand holds nearly 40,000 people.

enue, the best they can do is sell the land to get some cash to pay back the loan,” Stibal said. West Allis officials believe they have just the plan to do so. Five years ago, the city floated a proposal to redevelop 127.5 acres of State Fair Park land, 85 of which are located within West Allis. The centerpiece of the plan removes the Milwaukee Mile and activates Honey Creek, which is currently channeled underground, and to create a riverwalk along the creek. “We didn’t want racing to officially be declared dead with no plan,” Stibal said.

TROY FREUND PHOTOGRAPHY

2009 2006-2008 2003-2005 State Fair Park takes over race promotion at the Mile.

Milwaukee Mile Holdings serves as promoter, losing between $1.2 and $2.1 million per year.

2008 Save the Mile website launches.

Wisconsin Motorsports LLC serves as promoter; NASCAR leaves at the end of the year. Indy Car goes to Road America in Elkhart Lake.

2010 First year that no races are scheduled at the track.

2011

2012-2015

AB Promotions takes over “weekend rental” for IndyCar Milwaukee 225.

Andretti Sports Marketing hosts Milwaukee IndyFest weekend.

2016 No races scheduled at track. SOURCE: SAVE THE MILE

“So that’s what we did, created a plan that was bold, exciting and massive. We don’t want to see the land sold to Kmart.” The first phase of the West Allis plan would be the development of two mixeduse buildings and a public plaza along Greenfield Avenue, just south of the newly-created riverwalk. The plan, which envisions development occurring over 20 to 30 years, would be similar to Bayshore Town Center, the Historic Third Ward and the Milwaukee Regional Medical Center, according to West Allis officials.

“This highly valuable site, which could contain over $1.2 billion in development value, has the potential to accommodate nearly 8 million square feet of future improvements, with inviting public open space that could bring life to the area yearround,” according to the city’s plans. The plans, however, were never widely publicized. City officials presented them to the State Fair Park board and were met with resistance. “How does West Allis get to put together a development plan for our property?” Frenette said. “They’re convinced w w w.biztimes.com

the track won’t be there. We park 3,000 cars a day there (during the fair), plus there is a stage (in front of the grandstand for the fair’s concerts).” Stibal said he was surprised State Fair Park hasn’t been willing to explore its options for the Mile site. However, he did acknowledge the loss of parking revenue would be one major impediment. “Like any good business deal, we could structure that into the transaction,” Stibal said. “We can’t afford to build a parking structure for 11 days (of the Fair), but everyone has to be made whole. No one has

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sat down to structure the deal, because we never got that far, but there are great minds out there and it could be done.” Stibal also knows that a redevelopment of 127 acres of State Fair Park land might not be feasible. He would like State Fair Park to identify its plan for the highest and best use of its land. And then he is hoping the board and the city of West Allis could meet to see if there is a way to collaborate. “We’re not saying what should be done, we’re saying this is what our vision is, and it is pretty massive. Now, let’s see a counter,” Stibal said. “We can make any17

thing in our city but land. The visibility there is huge, and the type of high-end jobs and high-end development we could bring would be absolutely phenomenal.” Rocky Marcoux, commissioner of Milwaukee’s Department of City Development, knows the benefits development of the site along the freeway could have, but also realizes the city is at the mercy of the state. “There is tremendous freeway access and that piece of land could have some potential benefits for development if done in concert with State Fair’s longterm plans, as well as the city of West Allis,” Marcoux said. “We’re cognizant that the land (along the freeway) is in the city of Milwaukee and we want to continue to have discussions with (State Fair and West Allis) so if development could occur, we are ready for it.” For now, Yingling is focused on the things he believes he and his board can control at the Fair Park. He would like his land and property committee to take a look at possibly reconfiguring the Westside Marketplace, which he believes is underutilized, and the Swine Barn, both located along 84th Street. Also on his wish list: a second Coliseum. The current Coliseum is used so much during the fair that if a show gets behind schedule on weekends, draft horses are still being shown at 12:30 a.m., Yingling said. There are also other options now that a portion of the grandstand has been sold, including moving the children’s rides to that area of the fair to separate them from the adult midway. These decisions have to be made by the end of September if State Fair Park wants to be included in the state’s 2017’19 biennial budget. Any capital expense more than $761,000 has to be approved by the state Legislature. The State Fair Park board has until the end of the month to decide whether or not to make a capital budget request. If they don’t, they are out of the game again until 2019-’21. What State Fair Park isn’t planning, Yingling said, is a request to remove the Milwaukee Mile. “Racing used to be five stock car events and two Indy races (at the Mile each year). That will never happen again,” Yingling said. “People say just take it out, it’s just concrete. But state government is not going to let you tear up and destroy something that has debt on it.” n 18

TROY FREUND PHOTOGRAPHY

cover story

IKEA considered building a store on this site along the freeway at State Fair Park before choosing a site in Oak Creek instead.

IKEA CONSIDERED STATE FAIR PARK SITE BEFORE CHOOSING OAK CREEK BY CORRINNE HESS, staff writer Before deciding to build its first Wisconsin store in Oak Creek, popular Swedish furniture retailer IKEA spent more than a year in discussions with the state Department of Administration about purchasing 26 acres of land at State Fair Park to open a store along I-94 in the city of Milwaukee.

purchase a site in terms of a real estate transaction,” Roth said. “But there can also be physical constraints of a site, including hiking trails and infrastructure. Many of the sites we were looking at included a lot of other obstacles. And some came with extraordinary costs that could have fallen on us.”

In spring 2014, IKEA contacted the DOA, State Fair Park and officials in the cities of West Allis and Milwaukee to begin discussions about building a store in Milwaukee, said John Yingling, chairman of the State Fair Park board of directors.

Jerry Janzer, chief executive officer of Reinhart Boerner Van Deuren s.c., sent several emails between January and May 2015 on behalf of IKEA and local real estate broker Max Rasansky of CBRE, asking the state to investigate relocating the Hank Aaron State Trail, the Park and Ride lot at I-94 and 76th Street and the State Fair RV Park to make room for the store. Those emails were later obtained by BizTimes through an open records request.

“We were certainly willing to listen, but there were a lot of complexities with the fair,” Yingling said. “When a person owns a piece of land, the seller has two choices: yes or no. But state government does not work that way.” In order for state property to be sold, it has to be deemed surplus by the DOA. Once that happens, the State Building Commission and Joint Finance Committee must agree to the sale. Then a request for proposal is issued. IKEA would not have been guaranteed the land in that process, Yingling said. Prior to committing to Oak Creek, IKEA spent 10 years considering various privately- and publicly-owned sites along I-94 in Milwaukee County, including State Fair Park, said Joseph Roth, U.S. expansion and property public affairs manager for IKEA. Roth would not say which other area sites IKEA considered. “With many sites, there can be some obstacles that are too hard, or too long to overcome, whenever you are trying to

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Janzer and Rasansky would not respond to interview requests. The DOA hired Kansas City-based architectural firm Populous to conduct a study showing the impacts of moving the main entrance of State Fair Park, the midway and parking spaces to accommodate IKEA. The $60,000 study showed five options, ranging from a low of a $4.2 million to $4.8 million project to move the midway and parking to the Milwaukee Mile site, and add fairgrounds entrance gates, to a high of $158 million to $212 million to relocate the entire fairgrounds to somewhere else in the state. Others involved in the meetings, who spoke on condition of anonymity because of confidentiality agreements, said the deal with IKEA at State Fair Park might have gone through if Gov. Scott Walker had pushed for it, but he

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did not want the political ramifications associated with ending racing at the historic Milwaukee Mile. Walker announced he was running for president in July 2015. The talks with IKEA ended in late October or early November of 2015, Yingling said. Walker declined to comment on the meetings with IKEA and the possibility of the store being located in the city of Milwaukee. Yingling said Walker knew about the negotiations with IKEA, but did not have a strong opinion. “(Walker) was trying to get IKEA in Milwaukee County (ever) since he was the county executive,” Yingling said. “Is IKEA coming to Milwaukee County? Yes. Was he ultimately successful? Yes.” On May 5, IKEA announced it would build a 295,000-square-foot store on 29 acres at I-94 and Drexel Avenue in Oak Creek. Walker was notified that day by IKEA and asked if he would attend the official groundbreaking. The store will employ 250 people. Yingling said the meetings with IKEA showed the State Fair Park board two things: the fair is constrained both landand budget-wise, and it needs to be very methodical in what it chooses to do next with its real estate (see main story). “I will say, if you’re a land use planner, a parking lot is not the best use of the property,” Yingling said. “But if you think about it, that store was going to use most of that space for parking too. If (the State Fair Park land along the freeway) is going to be developed, well then that’s a whole different story.”

special report

banking&finance

Seeking yield in a low-interest, slow-growth economy Local investment advisors take different approaches

hile some investors were panicking or making investment changes in the days following Britain’s historic vote to exit the European Union, Dr. Janice Miller was sleeping soundly. Miller retired last summer from her role as associate dean of the Lubar School of Business at the University of Wisconsin-Milwaukee and moved to Phoenix. The move, as well as what to do in a market correction like Brexit, were all part of the plan she developed with her financial advisor, Jim Cantrell. Cantrell, CFP, founder and owner of Financial Strategies Inc. in Brookfield, takes a steady long-term approach to investing, she said.

BY MOLLY DILL, staff writer

“When they had the Brexit and people were going crazy, I thought, ‘Over the years with Jim, I’ve seen things happen and he has confidence things will turn around, and they always do,’” Miller said. “Some of it can be pretty alarming, but I think what I got from Jim Cantrell is we developed a strategy and there was solid reasoning behind it and we stuck to it and I was confident in the rationale that my portfolio would be OK.” Cantrell calls his approach his “sleep at w w w.biztimes.com

night policy,” he said. He advises clients to have seven years worth of income on the safer side of their portfolio so they have plenty of room to wait out downturns instead of selling in a down market. “If investing for longer term, ours is a non-market timing strategy,” Cantrell Ellenbecker said. “Rather, we use time to try to insulate ourselves from the risk of the markets.” But what if an investor is seeking yield more quickly in this slow growth, low interest rate environment?

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Karen Ellenbecker, founder and senior wealth advisor at Ellenbecker Investment Group Inc. in Pewaukee, says the drive to get some interest or earnings from their portfolios is top of mind for her clients, many of whom are approaching retirement. She takes the approach of splitting the portfolio in half. One half is put into a mutual fund that’s available as liquidity or income. The other half Ellenbecker invests in individual equities. Ellenbecker targets the highest quality, large cap, dividend-paying stocks she can. Names like Texas Instruments Inc., Kellogg Co., ExxonMobil, Microsoft Corp. and Lowe’s Companies Inc. “A lot of people are searching for income and they go out and they look for a stock not based on the quality of the stock, but based on what dividend they’re paying. The higher the dividend, the more risk in the stock,” she cautioned. The average dividend in Ellenbecker’s portfolios is 2.3 percent. These type of stocks, while not paying the highest dividend, assure a dependable income. There’s also more certainty than riskier mutual funds, in which the buyers are changing the content day-to-day, she said. “In a market where we are now where there isn’t a lot of easy to understand income options, people tend to run at what they see is the highest payout and they don’t consider the risk,” she said. “If the government is saying, basically, ‘There’s no value to money right now; it’s at zero,’ and someone’s paying 6 (percent), what does that say?” If there’s any sign of trouble in these individual stocks, Ellenbecker sells them right away. “I think that people still should have a balanced portfolio, because no one wants to see their portfolio go down,” she said. “Look to some high-quality mutual funds that have low internal expenses.” When seeking yield, business development companies are one good option right now, said Jim MarMarshall shall, president and founder of Spectrum Investment Advisors in Mequon. They pay a return of 7 or 8 percent, but are usually limited to investors that have a minimum of $500,000 in liquid as19

sets because they’re not liquid daily, Marshall said. He recommends putting 10 to 15 percent of clients’ money into BDCs. Outside of that asset class, Marshall chooses balanced mutual funds for value, rather than growth, investing. He is particularly liking dividend-paying energy and financial stocks at the moment for long-term returns. “Once interest rates start climbing, that’s when you’re going to see financial stocks do better,” Marshall said. For younger clients, he advises putting 70 to 80 percent of an investment portfolio in stocks, and for those nearing retirement, putting 50 to 60 percent in stocks. “What we like to do, especially in this market, is to leave some of your powder dry, because you never know when the next correction is around the corner,” Marshall said. “By having some of your powder dry, you can take advantage of something like Brexit.” By having cash on hand, clients can buy in during a market downturn and gain on it when the market recovers.

“A plodding economy is usually good for stocks,” Marshall said. “But the downside with stocks, because we have a Dow of 18,000, we’re not crazy about just jumping in and putting everything into stocks, because stocks are getting expensive.” But if an investor is just starting out, it’s a good idea to pick a mutual fund rather than individual stocks. “I would say the average investor is better off buying a fund than they are buying individual stocks,” Marshall said. “It’s so hard for the average investor to pick individual stocks.” Cantrell said there’s a risk junk bonds may default or dividend rates may go down dramatically if there’s a strong market correction like in 2008. “If money is needed in the short-term, then we almost have to ignore the low rates of return and just invest for stability and safety,” Cantrell said. That’s when he advises CDs, savings accounts, money markets and very shortterm, high-quality bonds. n

Banking & Finance Briefs Wipfli to acquire Weltman Bernfield Wauwatosa-based Wipfli LLP announced it will acquire Buffalo Grove, Illinois-based Weltman Bernfield LLC on Sept. 1. The terms of the transaction were not disclosed. The public accounting and business consulting firms will combine, with 45 Weltman Bernfield employees, nine of whom are partners, joining Wipfli. They will continue to work out of the same office. Wipfli offers assurance, accounting, tax and consulting services to both public and private companies. The combined firm will have more than 1,700 employees, more than 200 of whom are partners, at 39 offices in the U.S. and India. Four of the offices will be in the Chicago area. “We are pleased to welcome Weltman Bernfield’s highly skilled professionals to the firm,” said Rick Dreher, managing partner of Wipfli. “The services that Weltman Bernfield provides to their clients complement Wipfli’s core services, so this combination will deepen our resources and further strengthen Wipfli’s geographic presence in the Chicago market. Joining forces with Weltman Bernfield represents another significant step in positioning us as a major player in a strategically key market for Wipfli.” Wipfli continues to grow strategically. The firm also in January acquired Northbrook, Illinoisbased accounting firm Steinberg Advisors Ltd. and earlier this month acquired California health care consulting firm HFS Consultants. The Weltman Bernfield deal, combined with the Steinberg Advisors deal, makes Wipfli one of the largest CPA firms in Chicago, said Allan Koltin, chief executive officer of Chicago-based Koltin Consulting Group, who advised both firms on the transaction. “This merger is huge for Wipfli as it really solidifies their position in Chicago as a major player amongst CPA firms,” Koltin said. “I wouldn’t be surprised to still see Wipfli do another merger in downtown Chicago in the next year or two to round out their strategy.”

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banking & finance

What to expect if your bank is acquired Banks work to communicate changes in consolidated companies

ank mergers are becoming increasingly common in Wisconsin these days, and with a merger comes some inevitable changes. What should a customer expect when his or her bank is acquired? The bank merger process is a different animal than the usual private business merger. It requires both state and federal regulatory approval, as well as approval from both companies’ boards and shareholders, said Rose Oswald Poels, president and chief executive officer of the Wisconsin Bankers Association. Regulators examine the impact of the transaction on the community, as well as other factors, such as their troubled loan portfolios. That process can take between two months and two years, depending on whether both banks are financially healthy and whether regulators have any concerns, said Peter Wilder, an attorney in the banking and financial institutions practice group at Godfrey & Kahn Wilder S.C. in Milwaukee. “From either the business or consumer side, often you’re going to be part of a larger institution that could mean you’re going to have access to different or more products and services,” Wilder said. “Oftentimes it’s … actually a good thing because now these folks have access to treasury management services or now they have mobile banking when they didn’t have it before.” “Certainly in the last eight years, merger activities are very closely scrutinized to make sure that it is in the best interest of both organizations,” Oswald Poels said. The branch and ATM network available to a customer may expand, as well. While banks may complete their Oswald Poels legal mergers on one

BY MOLLY DILL, staff writer

date, it can take longer to integrate their systems and implement bankwide policies, depending on the scale of the transaction, Wilder said. Banking customers should watch for changes—in depositside account fees especially—and also be aware of when any new branches or ATMs become available to them through systems integration. “You always get a notice of what those kinds of changes are and it’s a good idea to, you know, read them,” Wilder said. “The key is, 99 out of 100 cases, the acquiring institution, they want to keep you as a customer so it doesn’t really (benefit) them to jack your rates to an astronomical level because they know they’ll lose a customer if they do something like that.” Eric Korbitz, CFA, CFP, owner of Korbitz Financial Planning LLC in Glendale, said it’s important to watch bank communications and pay attention to any account fees or minimum balance requirements, particularly in such a low interest rate environment, where Korbitz fees loom large. “I’ve seen plenty of cases where a given bank account type was grandfathered into a new institution and some years later, they decide they are going to standardize things and get rid of these certain account types,” Korbitz said. “Certainly from the companies and the consultants that work with banks, there’s definitely a lot of time and thought put into the messaging of a merger and the announcements of merger transactions,” Oswald Poels said. “I think many customers really see little change when a merger happens, certainly at least in the initial period of time.” Hartland-based Town Bank and its parent company, Wintrust Financial Corp., in March acquired the parent company of Pewaukee-based Foundations Bank, Generations Bancorp Inc. It recently closed its existing Pewaukee office and moved those operations to Foundations’ w w w.biztimes.com

Pewaukee branch. Town Bank and Wintrust also in 2014 acquired Talmer Bancorp.’s 11 Wisconsin Talmer Bank and Trust branches and integrated them into the Town Bank network. Jay Mack, chief executive officer of Town Bank, has put in place a new employee training program and a detailed communication strategy for new cusMack tomers. As a result of the Talmer acquisition, he started a concierge banking group in a call center with extended hours to assist customers.

was BMO Harris Bank operator Bank of Montreal’s acquisition of Marshall & Ilsley Corp., parent company of M&I Bank. Chris Winkler, owner of intermodal and logistics firm Aim Transfer & Storage in Oak Creek, was previously getting his business loans through the now-defunct M&I Bank. When Marshall & Illsley was acquired, Winkler noticed some differences. For one, the lending standards tightened, he said. “M&I lost what relationships were about,” Winkler said. Winkler said he didn’t like the larger corporate feel and approval process at BMO. “They weren’t there to work with you, they weren’t there to take a risk with you

BMO Harris Bank parent Bank of Montreal’s acquisition of M&I Bank parent Marshall & Ilsley Corp. was one of the largest bank mergers in Wisconsin over the past five years.

Town Bank sends all new customers a letter which announces the deal, lays out a roadmap for the integration and explains the value proposition for the customer, such as new services available to them. “No matter how hard you try, there’s naturally going to be a skepticism about now having to be banking with a different financial institution,” he said. “We’re at risk of losing them at that point. We need to work hard not to have that happen.” One of the largest bank mergers in the Milwaukee market in the past five years

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and they weren’t there to partner with you like they did in the past,” he said. Winkler switched to Green Bay-based Associated Bank, where he said he found a lender that took a more personal approach. “This one individual’s comments are not reflective of who we are as an organization and what our company stands for,” said Patrick O’Herlihy, a spokesman for BMO Harris. “Relationships are what we’re all about: relationships with the community, relationships with our customers and relationships with our employees.” n 21

banking & finance

When push comes to shove, companies are investing in equipment But still cautious about economic environment

BY MOLLY DILL, staff writer

n order to compete with foreign foundries that can offer lower labor costs, Bremer Manufacturing Co. Inc. has kept its machines updated with the latest technology. While the manufacturing industry is sluggish and the political climate uncertain, the Elkhart Lake-based aluminum foundry recently made a big investment. It laid out $110,000 for a new Haas machining center, said president Tom Dolack. The company, which has 76 employees, already has five similar machining centers, but they’re older models. It uses them to make aluminum parts often used in diesel engines. “This particular machine has the ability to check the dimensions on the part while the part is in the machine. You know right away whether the part is going to work or not,” Dolack said. “So by using the technology on this new piece of equipment, we can get out more quality parts in less time, which makes us more efficient and more competitive.” Bremer used an equipment loan to make the investment and assured its clients would stay onboard instead of looking for that capability elsewhere, he said. It’s leasing the equipment back through Brookfield-based First Business BankMilwaukee. “We’re able to match our monthly cost with monthly sales,” Dolack said. “We don’t have to come up with $110,000 and figure out how we’re going to pay for it or save up the $110,000 and then buy it. We can use the machine now.” First Business Bank-Milwaukee has seen equipment lending increase slightly over last year, said Tom Rude, first vice president of Equipment Finance at First Business. “There’s been a little softness in the economic conditions here throughout 2016, but the performance of the portfolio is still strong,” Rude said. “There’s a cautiousness, there’s still uncertainty, but there comes a point when companies need to make the investments in their business 22

Bremer Manufacturing recently invested in this machining center so it could stay competitive in the marketplace.

to stay current with technologies, to stay current with productivity.” Automation can help businesses become more efficient and deploy human capital elsewhere, he said. There’s been increased activity in the metal and plastic manufacturing sectors this year, as well as niche printing and packaging. “There are a lot of companies that are looking to acquire equipment to be more efficient, quicker, faster,” Rude said. “The types of deals we’re doing, we’re pretty much looking at companies that are acquiring core revenue-producing equipment. We facilitate financing or leasing for equipment that they’re going to want to keep well beyond the lease term.” Equipment lending has been down the past couple of years at Green Baybased Associated Banc-Corp, said Mike Cornell, senior vice president of Commercial Banking. “I think what we’re seeing is manufacturers are not expanding and some of them have been deferring replacing B i zT i m e s M i l w a u k e e

equipment,” Cornell said. “A lot of those that are buying equipment are, quite frankly, heavy with cash and they’re buying with cash.” The slow growth economy, coupled with a mixed and cautious tone among business owners, has caused a number of companies to rein in spending, he said. “If equipment has to be replaced, yes they’ll push it, but they’re not going to be doing any kind of expansion,” Cornell said. Automotive and recreation products such as RVs and boats are strong right now, as are manufacturers selling into the food and beverage space and health care equipment manufacturers. Agriculture, mining and oil and gas have been down over the past few years, he said. “We have a lot of manufacturers that have struggled to grow the top line if they’re selling into those industries,” Cornell said. “Most recently, trucking has definitely seen a decline since the third quarter of last year.” Port Washington State Bank has seen a

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number of dental practices and some manufacturers, such as a cabinet shop, buying equipment, said James Schowalter, senior vice president and chief credit officer. And while equipment lending is up at Port Washington, borrowers are more cautious overall about equipment purchases, he said. “They’re just at a point where they need to make decisions,” Schowalter said. “These are operators who don’t want to fall back into having too much equipment and not enough work—they’re not going to speculate,” said Steven Schowalter, president and chief executive officer at Port Washington. West Bend-based Westbury Bank has seen steady equipment lending, but most borrowers are seeking to reduce their debt loads, said Kirk Emerich, executive vice president of Investor Relations and chief financial officer at Westbury. “Certainly we’re seeing customers trying to pay off debt as quickly as they can,” he said. n

strategies

The family shame

Embrace the challenges your children face

e used to hide our family shame. I live near the county grounds in Wauwatosa, which used to be the home of many a family shame. The teenage daughter who got pregnant got shipped out to the country to “visit family.” The child with mental illness permanently stayed out of the family’s way as a ward of the state. Even the old soccer field my kids used to play on – it was determined to be an unmarked cemetery for the destitute who died in the county without a family to bury them. One needs not look any further than the vaunted Kennedy clan and Rose Marie (Rosemary), their daughter who was born with cognitive issues and was sent away to live here in Wisconsin, far from the family. We hid or buried our shame. After all, these failures in the genetic strain must be our fault – no? The mistakes from a passion unbridled and out of wedlock had to be hidden to prevent tarnishing the family reputation. And when a family is in business together, having developed a legacy, the effort to hide the truth from others often alienates and strains, exacerbating the family shame. But what of the family that doesn’t look upon mental illness, physical abnormalities or errors in judgment as something to be covered up? What of the

families that love and embrace all the family regardless of the challenges? The human capital expended to keep a family secret quiet is enormous, to say nothing of the financial largess required to cover tracks. So why do we do it? In my studies of families and family businesses, I have learned it isn’t to hide the entity from others as much as it is to protect the ego from a constant reminder. When a child is born with a defect, all too often the first thought is: “What did I do wrong?” The answer, quite often, is nothing. Regardless, the same part of the brain that pushed our children to excel at things, not for them, but for our own ego, is the part of the brain that is bruised when that child faces challenges. The Centers for Disease Control and Prevention published in November of 2015 a missive declaring autism is on the rise and they don’t know why. Having worked in a university, it was curious to me that so many of our professors and administrators had children with some form of broad spectrum autism. In my own family, the instances of ADD or ADHD are statistically more than the norm. So what do we do? Embrace it! Years ago, I was talking with well-known Jesuit priest Father w w w.biztimes.com

DAVID B ORST FAMILY BUSINESS

Gene Jakubek. He told me once, and most emphatically, that when faced with these challenges, I should pray “for a stronger back, not a lighter cross!” Reflecting on the challenges those around me have with children that are not “normal,” I wonder if these children were given to these families because they had the means and

knowledge to handle the challenge? If that is true, then we really do a disservice to that child to dismiss him or her summarily. Most children, regardless of their cognitive challenges, can learn to do things, and this includes in the family business. There are community services available to assist families in need – one such service being The Threshold in West Bend – from which I have personally seen some amazing results. Integration into the family, rather than being ostracized, seems to be the balm which is needed. Tell me – which family is better? The family that has a daughter who gets pregnant and can’t physically or financially care for that child, and after adoption the parents of the birth mother maintain ties to the child with the approval of the adoptive family; or the family that has a son with depression issues, and sends that child out of state because they can’t handle him any longer? The family that boldly circles the wagons and embraces the challenges is the one most likely to end up with success and frankly, external affirmation. Rather than seeing our children as an extension of our ego, we need to view them as a vitally important and necessary part of the whole. The family and family business which embraces the challenge and vows to stay together through thick and thin – that is the family to be heralded. It isn’t easy and sometimes it is impossible. But the family that keeps all the members in the frame is the one that rises above any shame. n David Borst, Ed.D., is executive director and chief operating officer of the Family Business Legacy Institute, a regional resource hub for family business. He can be reached at davidb@fbli-usa.com.

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strategies

The high-performing millennial Employers need to be proactive to retain them

ver the years, a common complaint about the emerging workforce is they want too much, too fast. This is true. Well, another way to say this is, “They want to do meaningful work and important work….sooner rather than later.” In addition, they want to know they have the opportunity to get ahead. And this is a good thing. Well, if you’re willing for it to be a good thing. I would like to introduce you to a 27-year-old millennial I talked with recently. I will call her Sarah. She asked to remain anonymous because I want to share her story and do some bragging about her. »» Sarah is 27 years old. »» She has worked for three companies

since she graduated from college in 2010. »» Sarah has been with her current employer for three years and still hasn’t decided how long she will stay. For now, she appreciates her situation and will likely not make a change. Nonetheless, she pays attention to stories of her friends and their career situations. »» While here, Sarah has enjoyed two promotions, each with the opportunity to earn higher compensation for higher performance. She is currently in the top 5 to 10 percent of wage earners in the country. »» Sarah has described her job situation as highly flexible, paired with high expectations for performance. She

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Sarah’s formative years As Sarah was growing up, she had more than her parents had when they were young. This did not prevent her from working hard to pave her own way, and today she does not carry any sense of entitlement. »» She held her first job at the age of 15 and has worked ever since. Between the age of 15 and the time she had her first professional job, Sarah had held more than 10 part-time high school and college jobs (bagging groceries, serving in fast food restaurants, hostessing in high-end restaurants, bartending, internships, to name a few). Her work ethic has been solid. »» Sarah started paying for her cell phone and car insurance at the age of 16. She is still on her parents’ cell phone plan because of the cost savings of a family plan. Sarah autopays them each month for her portion. »» She paid for a good portion of her college and has paid off all of her student loans. »» Sarah bought a nice used vehicle after college and paid it off in two years. »» She contributes 10 percent to her 401(K) and has additional money sitting in a savings account. »» And finally, Sarah has just purchased her first home.

The millennial leader

To nominate a hero, visit biztimes.com/hero 24

has met her quota two years in a row, even with a hearty increase moving into year two. Sarah has freedom to schedule her work as she wishes and she is mindful of not abusing this. »» While here, she has worked for a few leaders – some whose style supported her preference for autonomy and one, in particular, who micromanaged her to the degree that it was very difficult and unfulfilling. Sarah is glad to no longer be working for this individual.

Most recently, Sarah was promoted into a leadership role, leading the team that collectively manages the 30 top national accounts of the firm. She person-

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A LETA N O R R IS GENERATION Y ally manages eight of the accounts, and she leads three others who manage the remaining 22 between them. Sarah came into the role and immediately observed, “We do not have systems and assurances in place for taking care of these important accounts. This has been my first area of focus.” Secondly, Sarah realized immediately that one member of the team was performing at a much lower level than her two counterparts. For example, two of the reps were making upwards of 200 calls per week to her 25. Sarah shared, “I really had to think about this. I wanted to approach her about this in a way that would not be discouraging to her, especially because I am such a new leader. I need her to get on board.” Sarah went on to share, “I talked with her about it and asked her what was going on. We had a good discussion. Then I turned her loose with clear expectations about call metrics, only to realize a week later that she did not have a measurably better week. So, I turned to another approach: I suggested we meet daily. We set expectations for each day, then had a conversation at the end of the day. This did the trick. She is like a different person.” Sarah added, “With my new team, I want to be involved in the things they’re doing, to the degree that they appreciate my involvement. I want them to know that I care about their success.” Sarah is a high-performing millennial. And the good news for all of us is that she has company. Any firm with emerging professionals like Sarah will be wise to be very proactive in the attempt to retain them. 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.

strategies

The emerging practice of small group coaching

A unique opportunity for managers and high performers

ndividual executive/leadership coaching has enjoyed a long, evolving history. According to Dr. Earl R. Smith II in his article titled: “A Brief History of Executive Coaching,” “the earliest form of actual business coaching was called developmental counseling to support apprenticeships within organizations.” Coaching has its roots in humanistic psychology, focusing on a person’s dignity and intrinsic value. Smith tells us that “From 1980 to 1994, the field of coaching underwent rapid growth and quickly expanded into different directions, such as life coaching, leadership coaching, career coaching, success coaching, etc.” And “Since 1995, the need for executive and other workforce coaching continues to grow.” “Champions have coaches” is the mantra of good friend and colleague of mine, Cheryl Juech. We have had the privilege in our work to witness the development of leaders through executive coaching.

How do you measure/assess whether or not a leader has made changes in his/her leadership behaviors as a result of coaching? In our practice, and in the practice of many consultants, a leader engaging in leadership/executive coaching begins with an assessment of current state competencies. Often, the assessment is a 360 Leadership Assessment, providing the opportunity for a number of raters to offer feedback about the leader’s competencies, such as: communication, collaboration, authenticity, adaptability and flexibility, etc. The feedback from an assessment tool or individual interviews provides a leader with an understanding of where others perceive his/her strengths and opportunities for growth and development to be. Utilizing the feedback, the individual leader, with his/her coach, identifies specific developmental goals. Those goals become the focus of the coaching work, which typically will last six months to a year.

At the completion of a coaching process, a modified 360 Assessment may be initiated to determine progress toward goals. As an example, our team had the privilege of coaching 33 leaders in a manufacturing firm. We began with a 360 Assessment; worked with the leaders for a period of six months; and then three months after the coaching relationship ended, another 360 Leadership Assessment was initiated. The results? A 60 percent increase in leadership competencies. With consistent success in accelerating

small group coaching experience, individual EI 360 Leadership Assessments are conducted. »» Our coach meets individually with participants to review their EI 360 reports and provide guidance in identifying development goals and an action plan. Participants then review their plans with their managers, who provide internal feedback and support. They are also instructed to gain additional support by sharing coaching goals with co-workers and others.

KA R EN VER NA L LEADERSHIP We are learning that small group coaching offers a unique opportunity for managers and high performers to enhance their self-awareness; develop effective leadership skills; and build peer relationships and support that last long beyond the formal small group coaching sessions. One of the participants in a recent small group coaching experience writes, “I would tell others to embrace the experience. Jump in with both feet and take everything you can from it as it will help immensely in your leadership development.” And from June Kriviskey, VMC colleague and pioneer facilitator for our small group coaching model: “It has been a privilege to witness the growth that has happened over time with the managers in the group. Their support for one another and desire to become more effective leaders is inspiring. It’s also a lot of fun!” n

“ Small group coaching offers a unique opportunity for managers and high performers.” leadership competencies through individual coaching, our team developed a small group coaching model, with the intention of expanding the development opportunities for a greater number of managers/ leaders both within an organization, and for managers at the same level in different organizations.

Small group coaching: How it works “If we are willing to embrace the challenge of becoming whole, we cannot embrace it alone—at least, not for long: we need trustworthy relationships to sustain us, tenacious communities of support, to sustain the journey toward an undivided life.” — Parker Palmer, “A Hidden Wholeness” In our small group coaching model: »» Participants are selected through identification by a senior leader. Each small group is comprised of a minimum of four and a maximum of six participants. »» Following an initial meeting in which participants get acquainted, receive an introduction to Emotional Intelligence and gain an overview of the w w w.biztimes.com

»» In a series of small group sessions, participants discuss their “wins,” challenges and commitments in relationship to their established development goals. Peer coaching is encouraged. »» Our coach facilitates the conversation and offers “teachable moments” within the context of the discussion. »» Between sessions, participants seek each other out for peer feedback and support. »» Articles and other supplemental resource materials are provided.

Karen Vernal is the president of Vernal Management Consultants LLC, a Milwaukee-based leadership and organizational firm. The company is one of two firms in the nation to be certified in Emotional Intelligence through the Institute of Health and Human Potential. For more information, visit www.vernalmgmt.com.

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The South Suburban Chamber of Commerce will host a Chamber Networking Breakfast on Wednesday, Sept. 14, from 7 a.m. to 9 a.m. at The Cornerstone of Oak Creek, 155 W. Sunnyview Drive in Oak Creek. The event offers an opportunity to network with other chamber members and share information about your business with others. Cost is $15. For more information or to register, visit business. southsuburbanchamber.com/events.

SPOTLIGHT

The Greater Brookfield Chamber of Commerce will host Active Business Leads Exchange on Wednesday, Sept. 14, from 7 a.m. to 8:30 a.m. at Dave and Busters, 2201 N. Mayfair Road in Wauwatosa. The breakfast event allows members of the Brookfield, Wauwatosa and West Allis chambers to network and develop leads. Cost is $14 in advance or $18 at the door. For more information or to register, visit business.brookfieldchamber.com/events. FUEL Milwaukee will host Purely Social on Tuesday, Sept. 20, from 6 p.m. to 9 p.m. at Good City Brewing, 2108 N. Farwell Ave. in Milwaukee. The event will include networking, socializing, appetizers and beer with young professionals. The event is free. For more information or to register, visit fuelmilwaukee. org/events. The Metropolitan Milwaukee Association of Commerce’s Council of Small Business Executives will host the 2016 Future 50 Awards luncheon from 11:30 a.m. to 1:30 p.m. on Friday, Sept. 23, at the Hyatt Regency Milwaukee, 333 W. Kilbourn Ave. in Milwaukee. The Future 50 Program recognizes privately-owned companies in the seven-county region that have been in business for at least three years and have shown significant revenue and employment growth. BizTimes Media is the media partner of the event. Luncheon cost is $60. For more information or to register, visit See the complete calendar of www.mmac.org/future-50-awards.html. upcoming events & meetings.

BIZ NO T ES

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R.A. Smith National

Marquette University

R.A. Smith National, Inc. was selected as one of Zweig Group’s Best Civil Engineering Firms to Work For for the fourth consecutive year. The firm ranked No. 21 out of 40 in the civil engineering category. This list recognizes the top civil engineering firms in the United States and Canada based on their workplace practices, employee benefits, employee retention rates and more. R.A. Smith National has been recognized eight times as a Best Firms to Work For by Zweig Group.

Marquette University has launched the third round of its Enterprise Seed Fund program. Funded by the Wisconsin Economic Development Corp. and administered by the Marquette Office of Research and Innovation, the Enterprise Seed Fund is accepting applications to fund student and faculty entrepreneurship projects. It is open to current students, faculty and staff who have established a legal business entity in Wisconsin. The deadline is Oct. 14.The goal of the Seed Fund is to accelerate new business development at the Milwaukee university. Six businesses will be selected to receive $50,000 each in seed capital, as well as mentorship and programming sessions held by the Kohler Center for Entrepreneurship.

United Way The United Way of Greater Milwaukee & Waukesha County honored five local community leaders, and one local youth leader, for their commitment to philanthropic efforts in the Milwaukee area at South Second in Walker’s Point. The United Way’s Emerging Leaders Council puts on the “Philanthropic 5” awards each year to recognize five individuals in their 20s, 30s and 40s who donate, volunteer and advocate for change in the local nonprofit community. The Philanthropic Youth award recognizes a community leader under the age of 21. The Philanthropic 5 awards went to Grady Crosby, vice president of public affairs and chief diversity officer at Johnson Controls; Catherine Draeger-Pederson, executive director of Friedens Community Ministries; Molly Hogan, vice president of customer experience at BMO Harris Bank; Katie Maloney Perhach, managing partner of Quarles & Brady LLP’s Milwaukee office; and Matt Walker, regional partner at Thrivent Financial. The Philanthropic Youth award winner was Megan Sai Dogra.

Eppstein Uhen Architects Milwaukee-based Eppstein Uhen Architects has been ranked 42nd on the Giants 300 Architecture list of nationally surveyed exclusively architectural firms in a report released by Building Design + Construction, with $31.8 million in revenue. The annual report ranks the largest architecture, engineering and construction firms for building-type revenue, green building work, building information modeling revenue and more. EUA was also ranked 23 out of the Giants 300 K-12 Schools Architecture Firms list. These rankings are an increase from the 2015 lists ranks of 50 and 32 respectively. EUA also saw a rise in the ranks from 41 up to 34 in the Giants 300 Multifamily Architecture Firms list and from 52 up to 48 in the Giants 300 Healthcare Architecture Firms list.

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

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Life Navigators

7203 W. Center St., Wauwatosa 414-774-6255 | www.lifenavigators.org Social media channels: Facebook, Twitter, LinkedIn Year founded: 1949 Mission statement: The mission of Life Navigators is to improve the quality of life for individuals with developmental and related disabilities, their families and the community through information, education, advocacy and life planning services. Primary focus: Supporting kids and adults with disabilities and their families to live, work and fully participate in our community. Employees at this location: 24 and growing. We recently purchased the building next door to almost double our space. This expansion will allow us to meet the growing need for disability services. Key donors: To see a complete list of our generous donors and friends, visit www.LifeNavigators.org. Executive leadership: Vicki Wachniak, executive director Board of directors: »» President: Nick Curran, president, Executive Search Partners; »» Vice president: Adam Keller, financial representative, Northwestern Mutual Life Insurance Co.; »» Treasurer: James Phillips, partner, Godfrey & Kahn S.C.; »» Secretary: Mike Dover, president, Scan-Pac Manufacturing; »» Past president: Chip Doering III, president, Doering Leasing Co.; »» Dan Autey, vice president and general manager, U.S. and Canada Aftermarket, Johnson Controls Inc. – Power Solutions; »» Cindy Bentley, executive director, People First Wisconsin; »» Christina Wilson Berger, community volunteer;

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»» Greg Block, vice president of Private Banking, Private Client Reserve of U.S. Bank; »» Maggie Butterfield, director of Patient Amenities & Family Services, Children’s Hospital of Wisconsin; »» Christine Culver, assistant vice president of Development and Member Relations, United Performing Arts Fund; »» Darryll Fortune, president, SmallFortune PR & Marketing LLC; »» John “Chin” Klein, special education teacher, South Milwaukee High School; »» Susan Pickering, senior vice president and regional manager, Private Client & Institutional Services, Associated Bank; »» Cindy Schaus, special education teacher, Franklin Public Schools (retired); »» Lisa Voisin, director of public finance, Robert W. Baird & Co. Inc.; »» Kerry Wolfe, senior vice president of Programming, iHeartMedia. Is your organization actively seeking board members for the upcoming term? Yes, we are looking to fill committee roles. What roles are you looking to fill? Marketing Advisory Committee; Resource Development Committee Ways the business community can help your nonprofit: We enjoy creating new community partnerships. Here are a few ways the business community can assist: Participate in our Soap Suds Drive, collecting shampoo, conditioner and soap for kids and adults with disabilities; Name Life Navigators as your Charity of the Month or Jeans Day recipient. Key fundraising events: 33rd Annual Challenger Event Honoring Dave, Carol & Dan Anderson on Monday, Sept.19, at Blue Mound Golf & Country Club. The event is sold out!

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law. He also is a certified public accountant, and is a graduate of the University of Wisconsin Law School.

as a staff scientist.

■ Accounting The public accounting and business advisory firm of Vrakas S.C., Brookfield, has hired Kayla Kakonis as the firm’s first marketing coordinator. Her primary responsibilities include managing all social media, the firm newsletter, and its website, media releases and event coordination.

■ Banking & Finance Waukesha State Bank has made several new hires and promotions. Bob Meidenbauer was hired as vice president – commercial banking officer. Rick Zawacki and Kyle Matyas were hired as mortgage consultants. Aaron Frank was promoted to assistant vice president – bank manager, Pewaukee branch; Carla Bodway to assistant vice president – bank manager, Delafield branch; and Patricia Willadsen to mortgage consultant. Prairie Financial Group, a division of Waukesha State Bank, recently promoted Theresa Guthrie to senior retirement officer. Guthrie started with Prairie Financial Group as an intern in 2000. Brian Cayon was also hired as manager of investment services.

■ Education Rev. Elizabeth E.P. McCord has been named chaplain and director of spiritual life at Carroll University in Waukesha. She will provide the entire Carroll community with a spiritual presence and program leadership, and will be responsible for building and maintaining relationships with local congregations and nonprofit organizations through service projects.

Dr. Mora Anderson has joined Capitol West Academy, a K4-8th grade public charter school on Milwaukee’s northwest side, as coordinator of Student & Family Services. This is her 24th year as an educational professional, both as an MPS teacher and administrator and most recently, as associate principal at Nicolet Union High School.

■ Engineering The Sigma Group, Milwaukee, has hired

Steven Kikkert, David Zdvorak, Conner Tennessen and Sarah Fernholz as staff engineers. Joshua Zaharias has joined Sigma

■ Health Care Sandy Kiehnau is the new vice president, network management for UnitedHealth Group in Wisconsin. In this role, Kiehnau will be accountable for all network and provider relations and activities, across all lines of business in Wisconsin, out of the company’s Wauwatosa office.

Jeffrey Kluever was recently hired as the new executive director of the Business Health Care Group, Franklin.

Simandl Law Group S.C., Waukesha, recently hired Daniel Simandl as an associate attorney. His primary focus will be on employee benefits, labor and employment counseling. Daniel earned his undergraduate degree from the University of Minnesota and graduated from Marquette University Law School.

■ Manufacturing

Schwalbenberg

Johnson Paloma Resort Properties, Lake Geneva, has named Richard (Dick) Schwalbenberg as the new general manager of The Cove of Lake Geneva, a 222-suite condo-hotel just off the shores of Geneva Lake. Leslie Johnson was also hired as its new vice president of sales and marketing. Johnson brings nearly 20 years’ industry experience to this vital role directing sales and marketing strategies for the resort’s growing portfolio.

Nadolski

Macromatic Industrial Controls, Menomonee Falls, has added Rick Behnke to its staff as a product design engineer. His knowledge of embedded layout, hardware and firmware design, as well as customer service skills, make him a valuable asset to the Macromatic team. Additionally, Dave Nadolski has been hired as controller. He is responsible for all aspects of accounting and finance, focusing on the success of the organization as a whole.

■ Nonprofit Nancy Bonniwell of Weiss Berzowski LLP, Milwaukee, has been re-appointed for her third term on the board of directors of the Waukesha County Board of Adjustment.

■ Legal Services Lindner & Marsack S.C., Milwaukee, has added Sally Piefer to the firm’s growing team of leading labor and employment attorneys. Piefer specializes broadly in all aspects of employment law. Before joining Lindner & Marsack, Piefer spent 17 years with a small Waukesha-based firm. Weiss Berzowski LLP, Milwaukee, has appointed Peter White to the board of directors of the Milwaukee Young Lawyers Association. At Weiss Berzowski, White’s practice focuses on business and tax w w w.biztimes.com

Mike Schwieters is the new director of development and public relations at Grand Avenue Club Inc., Milwaukee. He is heading up the “Campaign for GAC” which is focused on increasing communitybased opportunities for more than 400 adults who face the challenge of mental illness. Federal Defender Services of Wisconsin Inc., Milwaukee, has named Craig Albee executive director. Albee has been with FDSW for

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Mary Pat Beals has been appointed chief development officer for Girl Scouts of Wisconsin Southeast. Beals will provide strategic leadership for philanthropic initiatives, including donor cultivation and stewardship. Formerly, she served as vice president of fund development for Girl Scouts of Northeast Kansas and Northwest Missouri.

■ Professional Services

■ Hospitality

Behnke

five years, previously serving as its senior trial lawyer. He has more than 25 years of experience in criminal defense.

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

Weather-Tek Design Center, Waukesha, has added Mike Klotz, commercial sales representative, to its team. He has more than 12 years of field experience in the construction industry, with a strong emphasis on windows and doors.

Sara Lubus has been hired as office manager at American Tree Experts, a third-generation professional tree care company in New Berlin.

Dave Simon has joined H&S Protection Systems, Pewaukee, as director of business development. Simon has served in the security industry for 12 years in the Dallas-Ft. Worth area. He brings social media, sales, marketing and communications experience to his new role, which involves cultivating clients’ security needs in southeastern Wisconsin.

■ Technology Ian Stumpe has been hired as a test engineer by Pewaukee-based TLX Technologies, a manufacturer of electromagnetic solutions. Stumpe has a background in electrical engineering and mathematics, and has experience in electrical, environmental, mechanical and electromagnetic testing.

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BIZTIMES AROUND TOWN n

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COSBE Golf Outing The Metropolitan Milwaukee Association of Commerceâ&#x20AC;&#x2122;s Council of Small Business Executives hosted its 26th Executive Roundtable Golf Outing on Aug. 8 at Westmoor Country Club in Brookfield. 1 Tom Nelson of Nelson Container Corp., Dan Meyer of sponsor BizTimes Media, Chris Shult of Bevco Engineering Co. and Alan Petelinsek of Power Test Inc. 2 Mark Schwei and Hollie Raab of sponsor Consolidated Construction. 3 Penny Bergerud and Chris Manske of cart sponsor Keller Inc.

4 Duane Maas of MC Services, John Mueller of Dana Investments, Dave Kliber of Kliber & Associates and Dick Hensley of eagle sponsor American Bank/National Exchange Bank & Trust.

5 Amy Lynch and Jessica Meng of eagle sponsor American Bank/National Exchange Bank & Trust.

PHOTOS CONTRIBUTED BY COSBE.

6 Theretha King (center) and Deb Auer (right) of sponsor Express Drug Screening award the second winning foursome golfers, Eric Zoromski of Vx Group (left), Brad Gador of ER Wagner, Jeff Van Straten of Bentley World Packaging and Joe Simo of VX Group (not pictured). 7 Jayne Swick and Gary Swick of sponsor SWICKtech, Taj Jordan of Music on the Move Plus and Bunny Jordan of Park Bank. 8 Sandy Swan of sponsor SVA Certified Public Accountants, Chad Ritterbusch of The Ritterbusch Group, Robert Bartel of Wisconsin Underground Contractors Association Inc. and Greg Gardetto of WM Sprinkman. 9 Ron Jahnke of sponsor Associated Bank, Gina Natoli of Beauchamp Maleki Group, Richie Burke of GOGEDDIT and Mike Mangold of Mangold Creative.

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n GLANCE AT YESTERYEAR VOLUME 22, NUMBER 12 SEPTEMBER 5 - 18, 2016 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120 PHONE: 414-277-8181 FAX: 414-277-8191 WEBSITE: www.biztimes.com CIRCULATION E-MAIL: circulation@biztimes.com ADVERTISING E-MAIL: ads@biztimes.com EDITORIAL E-MAIL: andrew.weiland@biztimes.com REPRINTS: reprints@biztimes.com PUBLISHER / OWNER

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

St. Mary’s Hospital This photo, taken by W.D. Kline circa 1928, shows St. Mary’s Hospital in Milwaukee. St. Mary’s, Wisconsin’s first private hospital, was founded by the Daughters of Charity in 1848. It joined with Columbia Hospital in 1995 to form what is today known as Columbia St. Mary’s. — This photo is from the Milwaukee Public Museum’s Photo Archives collection. Additional images can be viewed online at www.mpm.edu.

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

SALES & MARKETING DIRECTOR OF SALES

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

Maribeth Lynch mb.lynch@biztimes.com ACCOUNT EXECUTIVE

Kevin Gaschk kevin.gaschk@biztimes.com ACCOUNT EXECUTIVE

Molly Lawrence molly.lawrence@biztimes.com ACCOUNT EXECUTIVE

Maggie Pinnt maggie.pinnt@biztimes.com ACCOUNT EXECUTIVE

Christie Ubl christie.ubl@biztimes.com

PRODUCTION & DESIGN GRAPHIC DESIGNER

Alex Schneider alex.schneider@biztimes.com ART DIRECTOR

Shelly Tabor shelly.tabor@biztimes.com

Independent & Locally Owned — Founded 1995 —

COMME NTA R Y

Business as usual not good enough

bout a year ago, I wrote in this space about “The Two Milwaukees,” observing the stark differences between the booming downtown area and the central city that is plagued with crime and poverty. The dramatic differences between those two Milwaukees has rarely been more evident than during, and shortly after, the violent unrest in the city’s Sherman Park neighborhood in mid-August. I received a news alert on my phone on Aug. 13 about the police shooting of Sylville Smith and I worried what the reaction would be. That night, I was at the Brewers game with one of my oldest and best friends and our sons, blissfully unaware of what was going on just four miles to the north. That is, until I got home and watched the news with horror late into the night. Several businesses, which provide desperately needed employment opportunities 30

in that part of the city, were burned. Then on Sunday, more violence – this time directed at police – as rocks and bricks were thrown at officers. Despite the violence in Sherman Park, it was business as usual Monday morning downtown. People seemed to go about their days as they normally would. But business as usual won’t cut it for Milwaukee. The violent behaviors obviously can’t be tolerated, and hopefully those responsible for the fires and worst of the unrest are prosecuted. And officials need to be transparent with information about the shooting of Smith. The violence that occurred in Sherman Park is more than just a reaction to the police shooting. It is largely people stuck in a cycle of poverty, bad family situations and lack of education that are lashing out. The problem is complex and lacks B i zT i m e s M i l w a u k e e

an easy answer; otherwise, it would have been solved long ago. City, county and state leaders need to step up, more than ever, to come up with plans to improve the central city by somehow attracting more businesses, reducing crime and improving educational opportunities. Again, there are no easy answers. But different sides of the debate need to talk to each other and listen to each other, rather than playing the blame game, which is what typically occurs. What is absolutely clear is new approaches are needed and leaders need to be open to new ideas. Trying the same old approach that has been taken for decades obviously is not working. Businesses have a role to play and can make a huge difference. Just two days after the violent unrest in Sherman Park, representatives from 50 Milwaukee businesses and nonprofit organizations announced their “draft selections”

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ANDREW WEILAND Editor BizTimes Milwaukee

at Cristo Rey Jesuit High School in West Milwaukee. At the event, 237 students were “drafted” to work as interns one day a week during the school year. Cristo Rey has a diverse student body and many of the students come from low-income families. This is a great opportunity for them. Then there is the Joseph Project, a faith-based initiative that connects individuals in Milwaukee who need jobs with employers, typically in Sheboygan County, that need workers. Those job opportunities can change people’s lives. Of course there are other programs, but Milwaukee needs even more initiatives like these and they need to be scaled up dramatically to address the huge need to create opportunity in the city. n

ERICH SCHROEDER PHOTOGRAPHY

the last word

Diverse workforce adds value to a business Haitham Salawdeh is owner of Corporate Technology Solutions. He says diversity in a workforce can help solve problems and increase access to global markets. “As a business owner, I have always sought to diversify my workforce. The diversity I seek is more than racial or gender diversity, but also dozens of other ways people can be different, such as economic backgrounds, religions and sexual orientations. One of my main reasons for promoting diversity is it enhances problem-solving. Having a multitude of perspectives helps greatly in solving problems, leading to better products. For example, I had a designer show me what she thought was a perfect

Haitham Salawdeh

design for an application only to tell her that, as a color blind user, I would never be able to use it. “Additionally, having a culturally diverse workforce helps greatly in communication with our worldwide customers. Today, the main barrier to success in the global market is communication. Although technological advances such as Google Translate have been made, computers cannot begin to replace us in the area of culture, as it is purely human and is essential to the success of any company in today’s global economy. “Finally, a workforce that is multi-generational benefits from the blending of ideas from the more experienced employees and the new ones that are coming in

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Owner Corporate Technology Solutions 7119 W. North Ave., Wauwatosa Employees: 20 Industry: Information technology www.consult-cts.com

with brand new ideas. “Like many things in life, diversity presents opportunities and challenges. But when managed well, a diverse workforce will add value to your business. In some fields where the employment rate is in negative territory, diversity is not even an option, but rather the only way.” n

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

Present:

Thursday, October 6, 2016 | 7:00AM - 10:45AM Quad/Graphics - Sussex, WI

Tomorrow: Today

Panelists:

The future belongs to the prepared – will you be ready? A recent Manufacturing Performance Institute study reveals that fewer than half of manufacturers are investing in the strategies now that will allow them to prosper in the future .

Alan Antoniewicz President/COO Spancrete Group, Inc.

Join us to learn from successful company leaders who are planning for tomorrow today. Bring your questions and your best ideas, this event is a must-attend for manufacturing leaders ready to embrace key Next Generation Manufacturing strategies at a world-class level.

Joel Quadracci Following the panel discussion, there will be roundtable sessions focused on these important topics: • • • • • • •

Driving Profitable Growth in Your Company Risk Management – Supply Chain Strategy Growing Your Talent Pipeline Through Career-Based Learning Growth Through Exports Protecting Your Company From Cyber Security Threats Working Capital Guarantee Programs for Global Trade Finance The Art of the Deal: Be a Process Setter, Not a Process Taker to Achieve Success in Negotiations • Closely Held Businesses: Achieving Next-Generation Innovation • Sales: Prospecting & Closing • Operational Excellence • Strategic Growth Through Tax Incentives • Workforce Health • Optimizing your Talent Management Investment: Best Practices for Recruitment and Retention • Inspirational Leadership & Creating a Culture of Growth & Continuous Improvement • Business Succession Planning; Is an ESOP Right for You? • Design for Additive Manufacturing (DFAM): Is it Achievable With Today’s CAD Systems? And more

Sponsors:

Chairman, President & CEO Quad/Graphics

Michael Reader President Precision Plus

Moderator: Joseph Weitzer, Ph.D Dean, Center for Business Performance Solutions, Waukesha County Technical College

Learn more: biztimes.com/mfg