September/October 2017 by Connect Business Magazine

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Unleashed Bob is the leader of a growing Southern Minnesota company. When I met with him, he had some concerns about IT, but he was also curious to know what he didn’t know about how their IT stacked up with others. His situation is like many of the business leaders I meet with each week. It doesn’t really matter if they have internal or outsourced IT, there always seem to be frustrations and worries that never go away. Often times they think that because no one has found solutions to their issues that they just have to live with things as they are. In Bob’s case, they recently had a ransomware incident and he had concerns about security. His people were frustrated when their computers would mysteriously slowdown throughout the workday. He was also curious if they could be more efficient if they took better advantage of all the functionality in their main line of business application. Bob really wished that he had someone who could help him improve the way the business used technology. Other people had given him suggestions, but he was never 100% confident that they could make big changes with success.

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Contents

THE MAGAZINE FOR GROWING BUSINESSES IN SOUTHERN MINNESOTA

STAFF & CONTRIBUTORS Publisher: Concept & Design Incorporated

COVER STORY

Editor: Lisa Cownie

Classic Tales

Art Director/Staff Photographer: Kris Kathmann

Contributing Photographers: Art Sidner

Tucked into an unassuming, vintage home on South Broad Street in Mankato, an international player in the publishing world is quietly and beautifully going about business. As the third generation to run The Creative Company, Tom Peterson shares with us the key to the publishing company’s long history.

Contributing Writers: Shane Bowyer, Carlienne Frisch, Pete Matejcek Production: Becky Wagner Circulation: Becky Wagner Printing: Corporate Graphics, N. Mankato Mailing: Midwest Mailing, Mankato

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Fashion forward and family first, Randy Appel and Karissa Baukol talk about how they are keeping their internationally-known brand of apparel local.

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CIRCULATION 9,400 for September/October 2017 Published bimonthly

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The fruits of the Harbo family labors are in full bloom this time of year. Their business enterprises include Welsh Heritage Farms, Cheese and Pie Mongers and Harbo Hard Cider. It all adds up to sweet success.

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EDITOR’S LETTER

The Power of Words For as far back as I can remember, I have always loved having a book in my hand. I never cease to marvel at how black and white words on a page can bring me to tears or make my heart race with anticipation or put a smile on my face. Words are truly powerful. Perhaps few understand that more than our cover feature, Tom Peterson, third generation owner of The Creative Company based in Mankato. Peterson has a knack, though, for surrounding words with beautiful illustrations to really bring the stories to life. His story is one to read and I hope you enjoy it! Also in this issue, two family-owned businesses that epitomize what that term actually means. Randy Appel and his daughter Karissa Baukol running an international apparel company and a local retail clothing store. And the Harbo family! You gotta meet these folks. You can catch them this time of year at Welsh Heritage Farms in Lake Crystal or their new shop Cheese and Pie Mongers in St. Peter. Food, fashion and fun (in the form of a book!), we’ve got it all covered this issue! Happy reading, and hopefully, learning!

Lisa Cownie Editor

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By Lisa Cownie Photo by Kris Kathmann

Tom Peterson’s family built a publishing business over three generations by adapting to changes and staying true to their belief in the power of the written word.

In 1932, the United States was in the throes of the Great Depression. Unemployment hit 24%. Franklin D. Roosevelt was elected President of the United States. Al Capone was convicted for Income Tax evasion. Indeed, these are historical events that would shape the future of our country. Events that would go down in the history books. And chances are, some of those books would be published in Mankato, Minnesota. By one of the last remaining independent publishing companies in the United States, The Creative Company. “We’ve been around a long time, but our mission remains much the same,” says President Tom Peterson. “The heart of our publishing program are nonfiction books, that support the curriculum of schools and interests of the students. We cover almost every topic imaginable. In science if the teacher needs carefully researched information on the lifespan of a tiger, we’ll have that. If a student has an interest in the American Revolution, we’ll likely have also published a title on that topic as well.” The history of what we now know as The Creative Company began in 1932, as two friends saw a niche they could fill right from their hometown. A visionary named George Peterson, along with his close friend, Jim Mackin, started The Creative Educational Society. The duo produced maps and diagrams for use in classrooms. Items included such educational tools as chalk game sets called Pla-boards and their best seller; a boxed set of more than 500 rubber stamps called the Creative Pictured Printer. In fact, Peterson keeps an original stamp set in its beautifully ornate box in Creative’s editorial offices. A reminder to him of how the company began. “Much has changed about our company in the last 84 years, but the most important things remain the same,” says Peterson. “We are still in Mankato. We still use the images of our original rubber stamps on our envelopes. We still publish books and produce materials that teach and inspire. And we still care deeply about the items we produce.” continued > 8

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SEPTEMBER/OCTOBER 2017

Tom Peterson in The Creative Companyâ&#x20AC;&#x2122;s North Mankato offices.

Classic Tales

“My grandfather created and sold the rubber stamp and other educational sets for about 8 or 9 years, but then the U.S. joined the World War II effort,” explains Tom. “As a result, my grandfather could no longer obtain the rubber needed to produce the stamps. The rubber was needed for the war.” The evolution from rubber stamps to the supplementary reading books Creative publishes today was really born out of necessity. “My grandfather created and sold the rubber stamp and other educational sets for about 8 or 9 years, but then the U.S. joined the World War II effort,” explains Tom. “As a result, my grandfather could no longer obtain the rubber needed to produce the stamps. The rubber was needed for the war—for tanks, planes, and any other items needing rubber. My grandfather’s business had to change and change fast.” Not to be deterred, George Peterson and his partner quickly diversified but chose to stay with the school market because they already had built relationships. That’s when they started producing textbooks on topics that ranged from science to sports.

In the 1960s, George Peterson Jr. joined the company and continued the transformation that eventually paved the way to making Creative a leading children’s publisher in the United States and around the world. “My dad really changed the nature and the format of our content. From textbooks meant for classroom use to library books used for recreational reading and report writing, my dad created the road that we still travel today. He broadened the offerings, he changed the package, he created a new editorial direction, and ultimately he found a new customer within the school building—the librarian,” says Tom. “My dad’s books in the late 60s through the mid-80s ran the gamut of the curriculum. Like our publishing program today, there really wasn’t a topic he didn’t cover.” But perhaps that wasn’t

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The Creative Company | Mankato

One of The Creative Company’s first products, a rubber stamp set.

“My dad really changed the nature and the format of our content. From textbooks meant for classroom use to library books used for recreational reading and report writing, my dad created the road that we still travel today.” the most important thing he did for Creative. His curiosity went beyond the schools and libraries in the United States and he was bold enough to believe that a small, independent publisher from Mankato, Minnesota might be able to find interest in their books well beyond this nation’s borders.

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Classic Tales

“I’ve actually never been much of a goal setter in my life,” he says. “I just kind of figured if I kept my head down and worked hard every day good things would follow. I’m lucky and blessed that’s been the case.” Jay Weir

Some thirty years later, Creative’s books reach every continent of the world and have been published in more than 35 languages. From the Faroe Islands to China the content and design of Creative’s books have found readers and admirers the world over. The books Tom publishes are world renowned for their beauty, illustration, editorial edge, and enduring educational value. But whereas the company’s history is well illustrated, the future is a blank page. “I’ve actually never been much of a goal setter in my life,” he says. “I just kind of figured if I kept my head down and worked hard every day good things would follow. I’m lucky and blessed that’s been the

Mike Donohoe Classic Tales

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Peterson Gets Personal When not in the office, Peterson enjoys spending time with his four children. “They keep me busy,” he says. “One lives in New York, one in Boston and two in Minneapolis. So visiting them involves travel!” Samantha is 26 years old, Madeline is 25, Anna is 22 and John is 21 and a student at St. Thomas University. Peterson seems to have balanced personal interests including arts and sports. “I stay active as much as I can. I play golf, ride bikes, and I certainly enjoy attending sporting events,” he says. “But I am also a music fan. I love to go to live music events. So my interests vary. I don’t have one strong passion, but rather a lot of varied interests.”

The Creative Company | Mankato

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The leap from those original chalk sets and rubber stamps to beautifully illustrated and well written books though, did take vision. As George Peterson, then George Peterson Jr., and now the third generation, Tom have all managed to do is stick to their foundation and ride out the ups and downs of the industry, technology advances, and evolving formats and tastes of their customers. “We really are becoming more and more of an anomaly as each year passes,” says Tom. From Amazon to Simon & Schuster the large publishers dominate the book publishing business – not unlike most other industries. Through our relationships with authors and illustrators across the world, however, we found a way to create books that are unique. Books that reflect our deep love for high-quality design, beautiful production, and intelligent texts.” By placing quality first, by trusting the talents of those they work with, Peterson says the rest is relatively straightforward. “Truth is, I have a lot of great people that work with me. Without their help and talent and skills, this place wouldn’t exist. Great people with great skills that have a dedication to publishing the books that we love; having the faith that if we do what we love, to publish the content we believe in–not so much what the customers are asking for–that SEPTEMBER/OCTOBER 2017

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Classic Tales

there will be enough people out there that share our passion to keep our little world revolving.” That passion, and always working on the belief that kids are smart, has proven to be a good business plan. In the more than eight decades since the company began it has experienced name changes, personnel changes and market changes. It has endured its share of hurdles, but it has also embraced opportunities. Operating as The Creative Company today, it has almost 2,000 books in print and over 5,000 to its credit. Working quietly from editorial offices in a beautiful vintage home on South Broad Street, Tom talks about the evolution of the company and how they stay relevant in the digital age. Was it always in your plan to follow in your grandfather and father’s footsteps? Not at all! In 1985 I graduated from college and was going to do a brief stop in Mankato on my way to law school. I started working here that summer and when school started in August I tried to get out the front door but it was locked from the outside! And I haven’t been allowed to leave since. When I started in ‘85, it was my dad, a long-time assistant, and me. Today, we employ 60 people in two different locations in Mankato and North Mankato. It’s grown beyond my wildest dreams. But it

Classic Tales

Four Distinct Imprints As The Creative Company evolved, it developed four distinct imprints from which to operate. Creative Education is their nonfiction division that keeps the company connected to its roots. Creative Editions, founded in 1992, publishes picture books that are world renowned for their beauty and innovation. Creative Paperbacks focuses on soft cover versions of nonfiction and fiction titles. It was founded in 2000. And finally there is the youngest imprint, Creative Digital, which features a collection of ebooks. No matter which imprint is represented, The Creative Company maintains its longstanding dedication to publishing innovative and beautiful books.

The Creative Company | Mankato

“When I started in ‘85, it was my dad, a long-time assistant, and me. Today, we employ 60 people in two different locations in Mankato and North Mankato. It’s grown beyond my wildest dreams.” was never part of a plan or intention. Even today I look around and wonder where all these people, the buildings came from—it must be some kind of April Fool’s Day prank! When did you buy the company? I had the honor to purchase the company from my dad in 1999. The company has changed a lot since then – more books, more people, more markets. We have surrounded our core educational

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Classic Tales

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“Carefully edited, easily read, the information, these different worlds are immediately at your fingertips. And best of all no electricity, no batteries, no power cords are needed. Easily taken to the beach, to the park, anywhere you want and the book is easily carried and easily used – no instructions necessary, virus tainted upgrades to come!” product with more retail-related books, primarily picture books. But, nonfiction and educational books remain the foundation of the company.

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How do you know what titles to publish each year? By the eclectic nature of our list one might think it was determined by the direction of the wind, but primarily it is dictated by state educational curriculums. Anything a student would study in school, we are likely to have a book on that topic. Experience also plays a role as does what kids like to read. If a child, if a student is given books they enjoy reading at an early age, studies show that they are more likely to develop a love of reading. And although I may be extremely biased whether you are a writer, a doctor, a scientist or any other profession an individual’s education and much of their success is based upon their ability to read and comprehend the written word – even in today’s digital age.

Has increased digital competition and ebooks had much of an impact on The Creative Company? The internet and digital content has certainly changed the landscape of our entire lives, and that’s true of the educational market as well. As far as the book industry is concerned, I believe ebooks, in particular, were a solution looking for a problem. While there was a great push for ebooks three or four years ago, it’s waned considerably now. The internet, of course, has made a much more dramatic impact, but even there Creative has been insulated a bit. Most of our books are for children ages 5 to 10, grades K-4, and students' use of the internet for research purposes at that age is limited; books are still the trusted standard. But there’s also, in my opinion, a real digital divide not only in the educational system but in America too. Here in our region most of us are lucky enough to have access to computers and relatively easy and affordable Wi-Fi connections. Unfortunately, that is not true in some parts of our country. Some homes don’t have computers, even more do not have internet access; that is a significant challenge the digital age has not been able to overcome yet. To that point, I heard a National Public Radio editorial recently that said if the ‘book’ were invented today it would be the greatest invention of our time. In 24, 32, 80, 200 pages or more, it is a myriad of information, an imagination's worth of fantasy, on any subject you could imagine. Carefully edited, easily read, the information, these different worlds are immediately at your fingertips. And best of all no electricity, no batteries, no power cords are needed. Easily taken to the beach, to the park, anywhere you want and the book is easily carried and easily used – no instructions necessary, virus tainted upgrades to come! So despite the digital threat, your demand continues to increase? I don’t think demand has necessarily increased. If anything it has decreased as school budgets have been consistently cut for books. When I started in the 80s not only did every school have a library, but

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Classic Tales

A workspace in The Creative Company’s North Mankato location.

“I like to think we publish books at Creative a little differently than most publishers. We publish highend content for people who love and appreciate the printed word, people who expect to be challenged, entertained, and educated all at the same time.” every school had a librarian. The library was the heart of the school. Today schools are very different. For example, there may be one librarian for an entire school district. And when a school loses their librarian, well, it has a dramatic impact. Librarians, as much as anyone in a school building, are a champion for the written word, a champion of imagination, of learning. Take that focal point away and education changes. Many schools, many school districts have lost that focal point, the attention to the written word is diverted. As a result the librarian role gets filtered into the classroom, spread across a multitude of teachers, administrators, and volunteers, who while 18

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talented and concerned, have many other important responsibilities as well. It is a challenging situation. I know for you, meeting that challenge does not mean lowering your standards. The positive side of digital advances is that it has made producing books much less expensive than it was twenty years ago. So the ability to produce our printed material much more efficiently, more cost effective helps balance out the loss of school budget monies. And just as importantly it has allowed us to maintain our high production and quality standards.

SEPTEMBER/OCTOBER 2017

I like to think we publish books at Creative a little differently than most publishers. We publish high-end content for people who love and appreciate the printed word, people who expect to be challenged, entertained, and educated all at the same time. That is not the publishing model for most, it does not work for everyone, but we are fortunate it has and it continues to work for Creative. Much of the publishing world has been what I call “Disneyfied,” producing content that is often inexpensive and takes the rough edges off almost any experience in life. Disney, in particular, has done it with amazing success and to the enjoyment of generations. But the last

The Creative Company | Mankato

“We need to be unique, we need to provide a different perspective, we need to respect and challenge the intelligence of young readers – they are able to learn and appreciate so much more than we adults often give them credit for.” thing, in my opinion, that the publishing world needs is a small publisher trying to copy what a large publisher already does so well. We need to be unique, we need to provide a different perspective, we need to respect and challenge the intelligence of young readers – they are able to learn and appreciate so much more than we adults often give them credit for. Please walk us through the process. So, we have two realms here; an educational catalog of work and a retail catalog. The process for each is a little different.

For the educational/school market side, the catalog (Creative Education) is full of nonfiction books. The ideas for these books are developed in house and then we have a network of freelance authors who specialize in not only the content, but writing for children. These books are imagined, formatted, and created almost entirely by Creative’s editorial and design team. These talented people determine everything from the word count, to page count, to the design, and illustrations needed. The retail side of our publishing program is different. Books published for

that imprint are (Creative Editions) picture books. The development of these titles is almost entirely driven by the author and/ or illustrator of the book. These individuals may live in Mankato or they may live in Madrid. The origin of the idea matter not, only the quality of the message. Over the past thirty years now, we have been fortunate to work with some of the best children’s authors and illustrators working in the world. Individuals with remarkable talents, fantastic ideas, and a passion for children and books that I have been blessed to be around. The opportunity to work

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Classic Tales

The Creative Company’s North Mankato warehouse stocks some 2,000 titles.

Classic Tales

Recent Accolades

While the list of awards and accolades is too long for this publication, here are some of the more recent recognition The Creative Company has received.

THE GREAT NORTH WOODS © 2016: 2016 Best Book in Children’s Literature, Adirondack Center for Writing AREA 51 © 2015: Top 10 Series Nonfiction, Booklist A GLASS © 2013: Illustrators 56 Silver Medal, Society of Illustrators DOLPHINS © 2011: 2012 Maryland Blue Crab Young Reader Award for Transitional Nonfiction, Maryland Library Association AND THE SOLDIERS SANG © 2011: Honor Picture Book, Boston Globe Horn Book Award for Excellence in Children’s Literature, 2012 20

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NCTE 2015 Notable Poetry List, National Council of Teachers of English Best Children’s Book of the Year, The Children’s Book Committee of the Bank Street College of Education 2015 Notable Children’s Book, Association for Library Service to Children Top 10 Multicultural Nonfiction for Youth: 2015, Booklist Best Illustrated Books Award for 2014, The New York Times 2014 Silver Medal, Society of Illustrators Notable Book for a Global Society, International Reading Association

The Creative Company | Mankato

“Our role in the creation of these books is really only to be a guiding hand, a supportive voice. The best thing I can do with these books is to get out of the creators' way and let their talents shine through.” with people who are the best in the world at what they do has been an unbelievably rewarding experience for me. Our role in the creation of these books is really only to be a guiding hand, a supportive voice. The best thing I can do with these books is to get out of the creators' way and let their talents shine through. Creative Editions is a very exclusive publishing list, known amongst publishers, illustrators, and authors the world over. We’ve published books in 35 different languages, in the past 25 years. The international market has become a very important part of what we do. I’m

very proud of that. The educational side remains your base. Yes, the educational market is the foundation of any economic, publishing success we might have. Without the successes in the educational market, the retail market would not exist for us. Education is our business, picture books is our passion. You have two locations here? Our editorial offices are on Broad Street in Mankato and we have a distribution

center in North Mankato. The facilities are home to Creative and the other important publishing various imprints we’ve developed over the last 10 to15 years. Those imprints include Amicus, Black Rabbit Books, and RiverStream. Each imprint has its own niche and is critically important to the overall success of The Creative Company. We would not be who we are today without the strength of each of those publishing imprints. Ever think of moving? No. We’ve never been tempted to move

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Classic Tales

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The Creative Company | Mankato

the company. Mankato is home. It will be home as long as Iâ&#x20AC;&#x2122;m involved. With the colleges here, Minnesota State, Gustavus, Bethany and South Central, we have great access to people with editorial, design, and management skills. With a multitude of resources like this Iâ&#x20AC;&#x2122;ve never had thoughts of leaving the area. My grandfather and father set us up well! How many employees? We have 10 people here in the editorial offices and 50 in the North Mankato building. How many books do you typically publish in a year? We publish approximately 450 books a year. The print quantity typically ranges from 1,000 to 20,000 depending on title and audience. In rare occasions weâ&#x20AC;&#x2122;ve had books print over 200,000 copies and in as many as 17 languages at one time.

Where do you print? We print the majority of our books in North Mankato with CG Books, a division of Taylor Company. We keep our printing local as much as we can. When printing for other companies worldwide, however, printing in places such as Italy and China has become important.

THE ESSENTIALS

The Creative Company Address: PO Box 227 Mankato, Minnesota Phone: (800) 445-6209 Fax: (507) 388-2746 Facebook: The Creative Company Web: thecreativecompany.us

Sales and Marketing? Our sales force is spread out and varied. We have independent reps, we have telemarketers, and we have an inside sales and marketing team. Our telemarketing division is run in partnership with a Canadian company (Saunders Book Company) and reached schools throughout North America. For retail sales, we partner with a publishing company out of San Francisco called, Chronicle Books. They are known for their unique and beautiful publishing program, but also distribute several small publishers like ourselves.

I know you donâ&#x20AC;&#x2122;t like to look too far ahead, but any changes anticipated? No specific plans, no definitive changes. Perhaps my children will someday be interested in carrying on their grandfatherâ&#x20AC;&#x2122;s and great grandfatherâ&#x20AC;&#x2122;s legacy, but only time will tell that. For now, the company is stuck with me and with some luck and hard work hopefully we can continue to move the company forward â&#x20AC;&#x201C; one step at a time. Lisa Cownie writes from Mankato.

Celebrating 15 years in business! /'*&1 7*&1 * 89&9* , 74:5 .8 (*1*'7&9.3, >*&78 .3 ':8. 3*88 8*7;.(.3, 2&30&94 9-* 8:774:3).3, (422:3.9.*8 .3 84:9-*73 2.33*849& 8.3(* .98 '*,.33.3, .3 8.3(* 9-*3 <* -&;* ,74<3 94 4;*7 & )4?*3 &,*398 &3) -&;* -&) 9-* 51*&8 :7* 4+ <470.3, <.9- 9-4:8&3)8 4+ (1.*398 <.9- & 89743, '*1.*+ . 3 + & 2 . 1 > <* & 7 * & - & 7 ) < 4 7 0 . 3 , 8 * 7 ; . ( * 47 . * 3 9 * ) (148* 03.9 9*&2 <-4 +**1 9-&9 94,*9-*7 <* (&3 &((4251.8- 247*

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By Lisa Cownie Photo by Kris Kathmann

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SEPTEMBER/OCTOBER 2017

Randy Appel and Karissa Baukol stitch together family and fashion to build two locally-owned businesses.

Neck ties are how Randy Appel made his mark in the apparel world. Family ties, though, make up the fabric of his being. “I do all of this for the family,” reflects Appel, as he looks around at the rows and rows of ties, shirts and sweaters that will soon be shipped out to destinations all around the world from his 12,000sf distribution center in North Mankato. Appel owns F/X Fusion, an international apparel designer, manufacturer and distributor. Appel has seamlessly turned a passion into a thriving business. “I started in the men’s apparel business in retail when I was 15 years old,” says Appel. “I walked into the store in the little town in Iowa where I lived, I knew the owner, and told him I wanted a job. He hired me on the spot. I went on to work for him and stayed with that job all the way through high school and college. I worked my way up and eventually started doing a lot of the buying for his store. It was a great learning experience and it meant trips to LA buying shows when it fit in with my college schedule. I went on the road as an apparel rep for many, many years. I learned a lot about the whole sale side of the business by being on the road.” That road eventually led him to Minnesota where he met his wife, Patty, and her two young daughters. Knowing Mankato was their home, he committed to a commute and took a position as National Sales Manager with a Minneapolis-area company in 1997. “A few years into that, in 2001, I knew I was ready to do something on my own,” says Appel. “Ready as far as knowing the business, but it was a big decision. I had a good paying job, I had just married Patty, we had two daughters. So I had to make sure it was right." continued >

Karissa Baukol and Randy Appel at their Graif Clothing store in Mankato.

SEPTEMBER/OCTOBER 2017

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Fashion Sense

“So far it’s worked out,” he smiles. “At the time it was hard to leave something that was very secure but I had great mentors that pushed me and I had the support of Patty and the girls.” He started F/X Fusion in his basement and he started by focusing on one item: neck ties. His “work crew” at the time; his family. “I remember I was 12 and in middle school,” recalls Karissa Baukol, “The ties used to come in plastic bags without the tie riders on them to hang them on the hooks, so he would pay us to put tie riders on all these ties...hundreds of them. So we would be watching TV putting the riders on. I was involved in the business at a pretty young age.” As the business has grown, so has Karissa’s role. As Chief Financial Officer, she now handles all of the back office duties for F/X Fusion. She is fully entrenched in the operation, which quickly outgrew that basement in Mankato.

Fashion Sense

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“While attending a trade show in Las Vegas in the mid 2000s, I met a factory owner from China that I felt I could really work with. So I went over there on a whim,” says Appel. “One day I just got on a plane and flew there. I didn’t really know where I was going or what I was doing,” he laughs. “It was actually a little scary the first time I went over there. I didn’t really know anyone. I hadn’t talked to the factory owner since the trade show and we had only exchanged a few emails. But it seemed like the thing to do at the time. They met me at the Shanghai airport, then we drove 3½ to 4 hours to get to the factory. It was really quite the experience.” His whim paid off, as that relationship has been one of his longest standing and has led to other key partnerships. “I didn’t really go over there with a big agenda or anything,” says Appel. “But he was my first real international contact. He had a neck tie factory. He introduced me to a shirt factory and things just started growing from there. It was a bit of a leap of faith, but I wanted to make it happen.”

F/X Fusion | Mankato

F/X Fusion’s North Mankato offices and warehouse.

“Then business got really hot. I remember at one point we rented a semi and we were literally pulling orders out of the back of a semi. That’s when we knew, we just needed the space.” —Karissa “By the time I was in college it had really grown,” says Baukol. “So during college I would come help on weekends or at night. Then business got really hot. I remember at one point we rented a semi and we were literally pulling orders out of the back of a semi. That’s when we knew, we just needed the space.” The company has been housed in a couple of different locations over the years, but Appel says it was really never a question of moving out of Mankato. “I choose to stay here because of family,” he says. “Most apparel distributors are on the East and West coast. There are some in the Midwest, particularly Minneapolis and St. Louis, but not a lot

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Fashion Sense

“We have a nice-sized company,” says Appel. “It’s not huge, it’s not small. We sell to probably upwards of 2,000 stores in the United States, Canada, Dubai, and England.”

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compared to the coasts where distribution is a bit easier internationally. But we will stay here, this is home.” And “here” is about to expand. Appel recently purchased the lot next to his current facility on Webster Avenue in lower North Mankato. “We have plans to expand here,” he says. “We have the land and will do it sometime in the future, we are just looking at timing. Which may have to wait until after our ‘busy’ time!” The busy time of the year is now. Shipping hits its height in July through September. Then the busy season turns to attending apparel shows, and already he is starting the design process for Fall of 2018. “We have to work that far ahead to know what to buy from factories, who will need the time to make it, and have samples ready, etc. The whole process takes months from getting the product designed, to sales to the different markets then on to manufacturing and distributing. In total each season is a six-month process.” Depending on the time of year, F/X Fusion has up to 20 employees, along with a 10-person sales force scattered throughout the country. “We have a nice-sized company,” says Appel. “It’s not huge, it’s not small. We sell to probably upwards of 2,000 stores in the United States, Canada, Dubai, and England.”

Fashion Sense

Randy Out Of The Office Married for 20 years now, Randy and his wife Patty embrace the community. Patty recently retired after 32 years of teaching in the Mankato school system. Both love to be on the lake, with of course, their family. “Truly it seems I’m always thinking business. Its hard not to when you have multiple companies and you are responsible for employees. That makes it hard to check out. But I do enjoy fishing, and hanging out with grandkids.”

F/X Fusion | Mankato

Graif Clothing in Mankato.

Fashion Sense

Karissa Up Close Karissa acknowledges she had an urge to start working and making money early on. She graduated from Minnesota State, Mankato with an accounting degree in three years. And without PSEO credits even! After graduation, Karissa worked for Eide Bailly doing taxes and then eventually landed in their bank compliance department. After a couple of years there gaining real world experience she was ready to answer Randy’s call for help. “I asked her to come on board full time. It’s good because I don’t have to worry when I leave for trade shows or other business trips. I feel good knowing she is here watching all of the back end stuff. She plays a very important role.” She also plays a big role at home. Karissa is a mother of four and a wife to Chris Baukol with the Mankato Department of Public Safety. Her oldest son Beau is 7, Brooks is 6, Bryanna is 4 and Braxton is 2. “Work is my break!” jokes Karissa. “It is sometimes easier to come to work than it is to manage the chaos at home. On Sunday my husband and I will look at each other and say ‘is it Monday yet?’” But Karissa does find time to do things she enjoys. “I love gardening, that’s my outlet. Otherwise, watch sports!”

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Fashion Sense

Then about five years ago, with F/X Fusion well on its way, Randy saw a new opportunity. “I always had in the back of my mind that I wanted to get back into the retail business and things just sort of fell into place,” he says. “I was talking to Gary Kratzke and he said he wanted to sell his apparel store, Graif Clothing. So I said, well, I’ll buy it! So we started negotiations and during that time Karissa came to me and said ‘how about if I buy in with you?’ And I said, ‘perfect!’ The purchase of Graif Clothing, allows Appel to test and hone his own designs. “It just makes a lot of sense for us to have our product in there locally along with a lot of other products,” he continues. “It’s a good way for us to keep an eye on what’s going on as far as trends and styles and colors. It makes both companies stronger and better.” Another move that made the iconic Graif Clothing Store stronger, was a

“It just makes a lot of sense for us to have our product in [Graif Clothing] locally along with a lot of other products,” he continues. “It’s a good way for us to keep an eye on what’s going on as far as trends and styles and colors. It makes both companies stronger and better.” change of scenery. It would be a bold move, as the Graif Clothing store had been a part of Mankato’s history on Hickory Street for decades. But soon after Appel and Baukol purchased the store, the Civic Center located across the street announced its expansion plans. They were notified the street in front of the store would be closed for a year and a half, maybe longer. “That could have been the death of us really,” says Baukol. “It probably would have been over. No one realized we had

a back door! So we knew we had to move or it was done.” So the duo started scouting locations. One thing they had learned in their short time as owners of Graif was that people went to the store for a specific reason, there really wasn’t much foot traffic. Plus, on Hickory Street there wasn’t enough parking. They found a property that fit the bill on North Riverfront Drive. “Its all about location,” Appel says. “19,000 cars a day drive by us on Riverfront, so when this location became available at

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THE ESSENTIALS

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the end of Madison Avenue, it was perfect.” Karissa confirms, the move has been a good one. “It’s incredible. Business was steadily growing downtown,” she says. “And since we’ve moved it’s been even better. So it’s really been a fantastic move for us as a company.” Location is one thing, Randy’s business sense helped out too. “We had a vision. We knew we had to change the direction of the store,” he says. “We were looking for ways to attract a younger client base while keeping our older clientele. I think it’s working. We are now more of a regional destination.” And both are quick to point out that location and vision mean nothing, if you don’t have the right people by your side. ‘We have great employees,” Appel says. “That’s the whole premise of our companies, customer service. It’s what sets us apart. I mean there are a lot of places to shop, both retail and wholesale companies that stores can buy from, so in the end it’s all service. That’s the thing that is going to set us apart. We like to make it a customer experience for both companies. For example at Graif, we have an on-site tailor. A lot of stores don’t offer that, they just sell you a product and out the door you go! Whereas we want it to fit properly so the customer can look great.” As the years go by and their family and their business grows, Appel says they just continue to look forward. “It’s exciting to see how much we’ve grown, but it’s more exciting to see the potential and how far we can take it.”

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“We are fortunate to have Minnesota State Mankato right here,” says vice president of operations Joe Kolb. “Right now we have six interns from Minnesota State Mankato that are a great part of what we do here; two in design engineering, two in manufacturing engineering, and two in

“Right now we have six interns from Minnesota State Mankato that are a great part of what we do here; two in design engineering, two in manufacturing engineering, and two in human resources/supply chain.” - Joe Kolb, TBEI Vice President of Operations

human resources/supply chain. This has been an ongoing partnership between us and the University to give the students experience and at the same time it helps us to accomplish what we need for our business.” With 185 employees in Lake Crystal, JaDee Pals, human resources manager, says having access to quality interns and graduates coming from Minnesota State Mankato is critical to TBEI.

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“We are very appreciative to have the University close by with the many opportunities it affords us,” she says. “It is a great help with staffing our many positions. By having them as interns first, it gives us a chance to check out their talents and see if they are a good fit for the culture of our company here. We have always been very pleased with the caliber of students we get from Minnesota State Mankato.” Kolb echoes that sentiment. “For instance, the engineering interns have been here only a month so far, and the overwhelming feedback from their supervisors is that they are ‘killin it’. They’ve just been a huge benefit for us.” As the partnership continues, Kolb feels there is a lot of opportunity that TBEI and Minnesota State Mankato have yet to tap. “We definitely want to continue the relationship,” says Kolb. “This is the most we have utilized the internship process and it’s been great. I hope to do it on an ongoing basis. Particularly in the engineering program. Hopefully the students that come through here will have such a great experience that the internship program will become well-known. Perhaps students will attend Minnesota State Mankato because of it and request to come here. It’s a great place to learn good old American manufacturing.”

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A DAY IN THE LIFE

A Day In The Life There are self-help books, motivational blogs and leadership symposiums to help the business and entrepreneurial-minded make the most of each day to maximize productivity. Connect Business Magazine, though, recognizes we have great resources right in our own communities. So we are going right to local business leaders to give all of you a glimpse into how they manage their days. The goal is that readers may be able to take away little tidbits to incorporate into their own lives to be at their best in and out of the office!

Margaret Dillard

What do you like best about your job? My favorite part of being President of the Fairmont Area Chamber is that we work well with partners who share the desire to enhance our communities. I know that I can reach out to others and receive support.

Fairmont Area Chamber of Commerce Margaret Dillard is one busy lady. As President of the Fairmont Area Chamber of Commerce, she leads the efforts to promote Fairmont’s healthy business climate through leadership, communication and education for its members in the greater Fairmont area. It’s a tall order, and it’s one Margaret Dillard takes to heart. She is successfully leading the Chamber into its ninth decade! How does she do it? Well, here’s a glimpse into her day. What time does your day usually begin? Any morning routines that help you get ready for the day? Weekdays, I’m up at 5:15 with a pen, notepad and a cup of coffee. I’m at my best when I begin my to-do list and notes for the day before I leave for work. What is the first thing you do when you get to the office? Upon entering my office, I unpack my laptop and place cell phones on their desk stands so schedule reminders and communications are easily accessible. Answering emails and making notes for the day’s communication with staff and members comes next.

Ben Ellingson Partner, Eide Bailly – Mankato As the manager of an 80-person accounting firm in Mankato, Ben is used to working with numbers. The most notable numbers he faces each day are how to get the number of things on his to-do list each day, done in 36

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What do you do throughout the day to stay connected with those you lead? Every Monday morning begins with a staff meeting. I like things to be documented, so I encourage follow up emails even when we discuss details in person. What are some “typical” things you might do in a day? Planning and preparation are involved almost every day. Often, I am planning months and sometimes a year or more into the future. Daily work includes scheduling meetings with partners to set up programs, projects and events. Processing incoming communications like emails, phone calls and mail.

24 hours. As he leads the Mankato region for Eide Bailly, we caught up with him as he multi tasked; driving to Fargo on business and talking to Connect Business Magazine. Is there one specific thing you do each morning to get set for the day? The first thing I do when I wake up is

SEPTEMBER/OCTOBER 2017

How do you wind down after work? We are fortunate in Southern Minnesota to have a resort-like atmosphere. I enjoy being outside when I can. Sometimes that means a lakeside picnic, evening bonfire in the backyard or listening to live music at one of the local restaurants. Weekends usually involve a roadtrip to a winery, park or local event.

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check my calendar because each day is always unique. Each day I may have to go to a different part of the state, I may have a board meeting or two. So wrapping my head around the schedule first thing is important. And I am actually a new coffee addict. I just started drinking it not long ago and

now I love it. So if there is one ritual I have in the morning, it’s to stop and get coffee. What is the first thing you do when you get to the office? When I get to the office, I try to visit with one person each morning. Just take some time to catch up with what’s going on in their lives. We have 80 people in the office, so it’s hard to stay connected with everybody. But having those conversations as I am cruising through the office helps.

What do you do outside of work to unwind? Weekends are often spent fishing or hunting with my 8-year old son Carter. The whole family often heads up north to our cabin in Park Rapids. Tuesday nights are daddy/daughter nights with my 9-year old daughter, Kiersten. We have dinner, and then maybe go to Barnes & Noble for a new book. Those are times I treasure. Also, we have great neighbors, so we spend a lot of time in our backyards, just hanging out. NOT talking about work! To other business leaders reading this, what is the key to being a good leader in the workplace? I try to make sure I treat everyone I interact with the same. I don’t like titles. Everybody in our office, and in our firm frankly, has a role that is needed to accomplish our end objective. I do not like the hierarchy piece. So trust, respect, support, those are the things needed in business.

Do you have routines or “must do” things each day to help be at your best? I have a rule to never eat lunch by myself. I go with someone from the office or a business connection or a client but I always try to get out of office for lunch. This is important for many reasons. It’s a great opportunity to connect outside of work but it also gives me the mental break I need because the minute I get up each day, its go, go, go. Relaxing at lunch and having those casual conversations is a great, and much needed break in the middle of the day. I talked about multi-tasking in the intro, with all of the travel you do, I’m sure that is a necessary skill for you. What I am a recent sucker for is podcasts! I can listen to them as I am traveling. I admit, sometimes it’s personal stuff like true crime dramas. But I also use podcasts for business to try to stay a little bit relevant and stay in touch with what is going on. There are some great ones with leadership tips.

BIZ BRIEF ●● Eide Bailly CPAs and Business Advisors ●● 1911 Excel Drive Mankato, Minnesota 56001 ●● (507) 387-6031 ●● About: With a service center in Mankato, Eide Bailly’s office is located in Eastwood Industrial Centre in the city’s growing hilltop area. Seventy Eide Bailly partners and staff members serve clients locally, as well as throughout the region.

Who do you admire? Is there a business leader in your community whose brain you'd like to pick regarding their best practices? Please give us your suggestions! Email a name or even just a business to Lisa Cownie at editor@ connectbiz.com.

Insurance strategies, like children, continually grow and change.

At Brown & Brown we always strive to stay ahead of these changes, making sure your plan meets your evolving needs at the best possible price.

530 West Pleasant Street, Mankato, MN 56001 | www.brownmn.com SEPTEMBER/OCTOBER 2017

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The Madison Lake Fire Department has taken delivery of a new chest compression system designed to provide life-sustaining circulation to victims of a heart attack. The LUCAS™ chest compression system has been shown to result in higher blood flow to the heart and brain compared to manual chest compressions. “Performing manual chest compressions on a heart attack victim can be difficult and tiring,” says Kevin Kennedy, Chief of the Madison Lake Fire Department. “This automated system provides standardized, consistent compressions; which frees up our responders to focus on other lifesaving tasks”. Total cost of this technology is $16,000, and the purchase was made possible through the generosity of American Legion Post 269 in Madison Lake. While many ambulance services currently utilize the LUCAS™ system, Madison Lake is the first Fire Department in the region to acquire the technology.

Mankato Consolidated Communications Holdings, Inc. has completed its acquisition of FairPoint Communications, Inc., an allstock transaction valued at approximately $1.3 billion including debt and based on present equity value. The merger further positions the company as a leading broadband and business service provider across a 24-state service area. Edina Realty, a Berkshire Hathaway affiliate and the largest residential real estate company in Minnesota and western Wisconsin, announced that it is expanding into the Mankato market with an office located at 313 North Riverfront Drive. Edina Realty president and CEO Greg Mason said the company has been looking for the right opportunity to open an office in the Mankato area for more than 38

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MANKATO

JBeal Real Estate Group JBeal Real Estate Group, is celebrating 15 years in business in September! The premier real estate firm located in Mankato serves surrounding communities in Southern Minnesota. Since launching in 2002, JBeal has grown to over a dozen agents and have had the pleasure of working with thousands of clients.

a year. “Mankato is a growing area, and we’ve had our eye on it for some time,” said Mason. “We’re confident that we’ve found the right fit and are pleased to welcome Vonda Herding, who will be managing broker of the location, and her agents, formerly with Real Living Home to Home Realty, to the Edina Realty family,” Mason said. ISG, a multi-disciplinary architecture, engineering, environmental, and planning firm, landed its first spot on the Star Tribune’s 2017 Top Workplace list, ranking #33 in the mid-size company category. The firm, which started in Mankato over 43 years ago and is now 100% owned by employees, has grown to eight offices in three states with clients nationwide. Ayan Musse has been appointed to the Minnesota Emerging Entrepreneur Board by Governor Mark Dayton. Musse will serve a two year term from July 31, 2017 to January 7, 2019. Musse is replacing Jackie Cherryhomes on the board. Musse, along with her husband, Nagi Obeyd, owns KATO Trucking LLC, and serves as the Operations Manager. She is also employed by the YWCA Mankato, working to establish racial justice workshops for local businesses and organizations. “I am very honored and excited to

Emergency & Scheduled represent the greater Mankato business community and our state! I will bring my experience as a new American and business owner to the table to ensure an inclusive community where everyone has the opportunity to succeed as an entrepreneur,” said Musse. Freedom Home Care, a locally owned group providing non-medical home care services, is pleased to announce the acquisition of Elder Care Services. The operations of Elder Care Services will be immediately merged into Freedom Home Care’s with Sharon Chader, founder and owner of Elder Care Services, joining the staff and leading Freedom Home Care’s new Case Management service line. “The concept of providing both Case Management and traditional Home Care services within our agency has been a vision from the very beginning of Freedom Home Care,” says Chris Mihm, co-owner of Freedom Home Care. “We believe this model will allow us to serve more clients, and most importantly to make sure their needs are being fully met.” Elder Care’s staff brings a breadth of experience to Freedom Home Care. A well-regarded leader in providing exceptional care, Elder Care Services was founded in 1996. The Mankato Area Foundation (MAF) announces grant recipients for the first funding cycle in 2017. A total of $57,283 was awarded to area nonprofit organizations to support local projects and programs. Community Grants include: Feeding Our Communities Partners – Strategic Plan, $6,650; Mankato Area Youth Symphony – Education Outreach with the

MANKATO

Edward Jones Financial Edward Jones Financial advisors rate the firm highest in overall employee advisor satisfaction, according to a recent J.D. Power survey.

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Pioneer Bank Pioneer Bank announces the addition of key bankers to their team. Nate Newhouse has joined as a Business banker, Heather Bottin has joined in St. James as a Mortgage and Personal Banker and David Gullixson has been named a Business Banker.

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Minnesota Opera, $1,200; MSU College of Science Engineering and Technology – Scholarships, $5,000; MSU College of Science Engineering and Technology – Automotive Engineering: Formula Car Ethanol Research & Competition, $5,000; MSU Center for Engineering and Manufacturing Excellence – Let’s Explore Science, Engineering, and Mathematics (STEM) Summer Program, $5,000; Twin River Council for the Arts – Emy Frentz Arts Guild Acoustic Panels, $4,433. A special grant was awarded from the Senior Fund in the amount of $30,000 to VINE Faith in Action towards finishing the 5th Floor of the VINE Adult Community Center.

Call Karla VanEman today! (507) 345-4040

Lime Valley Advertising is pleased to announce the promotion of Casey Christenson to Art Director. Angie VanEman-Riley of American Way Realty has been ranked #3 on REAL Trend’s list ‘America’s Best Real Estate Agents’ in the state of Minnesota, and as the top female real estate agent in Minnesota for 2017. Additionally, VanEmanRiley was honored in The Wall Street Journal by REAL Trends on ‘The Thousand’ – a nationally ranked list of the top 1000 agents in the United States - she made the list at #119! VanEman-Riley has been named as one of the ‘100 Most Influential Real Estate Agents in Minnesota 2017’ by Real Estate Executives Magazine. Most recently, Angie was voted Mankato’s Best Real Estate Agent 2017 by Mankato Magazine for the 3rd year running!

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Stinson Leonard Street LLP is pleased to announce that Michael Jacobs has been named the Managing Partner of the firm’s Mankato office.

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Commercial Industrial Agricultural Properties

Twin Rivers Council for the Arts announces local writer, Pat Ryan as the 2017 Playwright in Residence. Ryan was selected for the program, now in its second year, and will begin in his appointment in August. Funding for the Playwright in Residence is provided by an Arts and Cultural Heritage grant from Prairie Lakes Regional Arts Council. For more information on the Playwright in Residence Program schedule, visit twinriversarts.org/playwrightin-residence. Rene’ F. Maes Jr. has been named the executive director of Camp Sweet Life Adventures, Inc (CSL), the only camp for youth with Type 1 Diabetes (T1D) in Minnesota. Executive Director. Rene’ will bring leadership and creativity to CSL’s programs and a deep sense of commitment. Rene’ has served various non-profits at all program, fundraising, executive and leadership levels, and has a breadth of perspective and experience.

NEW ULM AREA CHAMBER OF COMMERCE Supporting the businesses who make us a special place to visit for a weekend, or a lifetime. See our historical downtown, do some shopping – open your own business! We’ll help you make it your home.

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PrairieCare Medical Group – Mankato is opening a new facility for school aged kids (ages 5-18) struggling with behavioral or psychiatric issues. Based out of the Twin Cities metro area, PrairieCare has a state of the art psychiatric hospital for kids and has had great clinical outcomes with their Partial Hospitalization Programs (PHPs) and Intensive Outpatient Programs (IOPs). The Mankato facility will be under the leadership of Dr. Chris Wall, formerly a physician in Mayo Clinic Department of Psychiatry and Psychology for fourteen years, and Kate Cox, LICSW, a clinical social worker with seventeen years of experience at Mayo. More than 1,000 volunteers are needed for the 2017 Mankato Marathon, presented by Mayo Clinic Health System, to make the weekend run smoothly for the anticipated 5,000 runners. There are many ways to volunteer including handing out water at a water stop, interacting with people in the Kidz Zone and marshalling along the course. Volunteers will receive a volunteer tshirt, snacks and gloves from MTU Onsite Energy, the official volunteer sponsor for the Mankato Marathon. The Mankato Marathon is October 21 and 22, 2017. To become a Mankato Marathon volunteer, sign up online at mankatomarathon. com/volunteer/volunteer. Neutral Path Communications, the Midwest’s premier carrier neutral fiber transport facilities provider, announced it is now offering lit services to Chicago, IL.

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The new link runs from Neutral Path’s main line at the 511 Building in Minneapolis, MN, to one of the world’s largest data centers at 350 E Cermak in downtown Chicago, IL. Gather in the GreenSeam is a new fall event that celebrates the entire spectrum of people, organizations and businesses that make this area the most special agricultural region in the country. This new annual event will be Sept. 8 through Oct. 29 in the GreenSeam region, primarily Greater Mankato. Each weekend of Gather in the GreenSeam will follow a fun theme. Family favorite fall festivities like hay bale mazes, corn pits and tractor shows abound, with more non-traditional ag-related activities featured at local wineries and breweries. Community partners will provide an

MANKATO

Weichert RealtorsCommunity Group Weichert Realtors-Community Group is proud to announce that realtors Jerry Lynch and Mitch Klinkner have joined their team. Lynch and Klinkner will be assisting home buyers and sellers in the greater Mankato and Redwood Falls area with all of their real estate needs.

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New Ulm Economic Development Corporation

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ag-related special, activity, service or educational component for visitors to take part in an array of experiences from farm tours to wine tastings with a bunch of entertainment in between. For more information, go to gatherinthegreenseam.com. Gather in the GreenSeam is possible in part through a grant from Explore Minnesota Tourism’s new event grant program. It is the first grant of its kind to be given in the Mankato community with the hopes of driving visitor traffic to the state. Visit Mankato is looking for more businesses and organizations to be included in the weekend event promotions. Anyone or any business interested in being a partner should contact Joelle Baumann at jbaumann@visitmankatomn.com or (507) 385-6679.

New Ulm Ted Marti, president of August Schell Brewing Company, has been inducted into the MN Business Hall of Fame. Each year, Twin Cities Business Magazine recognizes the accomplishments of Minnesota executives who have made lifetime contributions to the state’s economy and to our greater community. According to Twin Cities Business, “Ted Marti leads Minnesota’s oldest brewery, August Schell in New Ulm. Schell’s could have disappeared in the 1970s, as most small regional breweries did. Instead, Marti kept the family business alive and thriving by embracing the nascent interest in craft beers while holding fast to Schell’s longtime core market of traditional German-style beers. Marti’s acquisition of the Grain Belt brand in 2002 made this once small, rural brewery the state’s largest beer producer.” Thriveon, an IT Strategy and Management company, has hired David Lauseng as Project Engineer. As part of the project team, Dave collaborates with clients and their Thriveon vCIO to design and implement technology systems to help companies meet their goals such as those for increased sales, productivity and growth. Dave has more than 25 years of experience in different industries with configuring and maintaining networks and servers, along

with PC setup and user support.

St. James From the Chamber: The City of St. James now offers kayaks and paddle boards for rent on St. James Lake. G&M Runge Inc. is honored with the Silver Award from Great West Casualty Company, as part of its annual National Safety Awards Program. Mark Johnson has been appointed to the St. James Economic Development Authority. We welcome a new business, St. James Pallets, to our community.

St. Peter River’s Edge Hospital & Clinic was awarded the Best Hospital Workplace in the small hospital category for the second consecutive year by the Minnesota Hospital Association (MHA) for its work in enhancing the interviewing and onboarding experience for staff and working with department leaders to identify reasons for turnover and implementing best practices for retention. “The staff at River’s Edge are the best and provide excellent patient care,” said Jackie Kimmet, Chief Human Resource Officer. “It is an honor to work with such a dedicated group of individuals.”

Waseca New members to the Waseca Chamber of Commerce are Caleb Erickson Memorial, Simply Storage, LLC., Johnson, Doerhoefer & Miner P.A., and County Wide Directory, LLC. United Prairie Bank-Waseca branch, welcomes Doug Lago new Market President. New business coming soon to Waseca: Burger King. The Chamber Ambassadors presented two Roots awards to two long standing businesses: ReMax Masters and Waseca Agency. Roots is an award given to a business that has been in business for over 30 years or more in the community.

SEPTEMBER/OCTOBER 2017

CONNECT Business Magazine

COWNIE CONNECTION

Bullying Is Bad For Business I like to read. Pretty much anything I can get my hands on. More and more these days, I find myself reading an assortment of business publications and blogs, and one issue is sticking out to me more and more. Workplace bullying is taking an enormous toll on business. In fact, studies show that more than half of all U.S. workers are affected by workplace bullying and up to one fifth of the typical workforce is subjected to bullying at any one time. I don’t think these are statistics sent out just to be dramatic. And we should be clear, we are not talking about the type of bullying associated with a schoolyard. School-age bullying may tend to be more physical, whereas workplace bullying tends to be more psychological and verbal in nature. It is defined as abusive conduct that is threatening, humiliating, or intimidating. The Workplace Bullying Institute (WBI) says it is any behavior that can be considered sabotage or prevents work from getting done. Also, according to WBI, bullying is four times more common than either sexual harassment or racial discrimination on the job. Bosses may perceive “bullying” behaviors they witness as just “personality conflicts” but if left unchecked, these behaviors can hurt the bottom line. According to the Bureau of National Affairs, American businesses spend $5 to $6 million per year on workplace bullying. Consequences include high absenteeism and turnover, declined mental and physical health, reduced productivity, internal communication breakdown and risk of bad reputation in the community. ➤➤ It is estimated that 20 percent of employees say workplace bullying cost them upwards of seven hours a week. ➤➤ Every target of a bully may lose up to 200 hours of productivity annually. If that targeted employee takes sick or vacation time, it may be a total of 400 hours of lost production to the employer. 42

CONNECT Business Magazine

So, if you are not p ay ing attent ion to this, maybe you should start! Because what makes a bad situation worse, is that often it is the victim of the bullying that will Lisa Cownie leave the company. Editor And often the victim is one of your best employees. From the materials I have read, here is what I have come to understand: the targets of workplace bullying are not the weakest players, as is sometimes the assumption when it comes to bullying. In fact, studies find these victims are often the strongest employees. Studies show that people may become targets because they are more skilled, more technically proficient, or people just like them better. These are triggers for bullys, who try to create the perception that they are strong by putting down and blaming others. The WBI says often the boss of the bully knows the bully is “disliked” but makes “allowances.” Again, the bullying is framed as a “personality conflict.” Still not convinced this is something you

SEPTEMBER/OCTOBER 2017

should look into? Here are some more startling stats for you to chew on (sources: brandongaille.com and business.com): ➤➤ 72 percent of the adult America public is familiar with instances of workplace bullying ➤➤ 65.6 million people are affected by bullying, including targets and witnesses ➤➤ Targets lose their jobs at a significantly higher rate than perpetrators (82 percent vs. 18 percent) ➤➤ 61 percent of all targets of bullying end up losing their job ➤➤ The percentage of bullies who have been after a specific target for a minimum of 1 year: 89 percent. ➤➤ 54 percent of bullies have been bullying for more than 5 years ➤➤ 80 percent of bullies have a negative effect on 5 or more co-workers ➤➤ Bosses make up the majority of bullies. ➤➤ Co-workers rarely help the targets of bullying.

➤➤ 51percent of employees say their company has a policy for dealing with bullies, but only 7 percent who are aware of a policy against bullying know of anyone who has ever used it ➤➤ Women [53 percent] are more likely to be bullies in the workplace than men [47 percent]. ➤➤ 62 percent saw sabotaging of others’ work or reputations as the primary form of bullying in the workplace ➤➤ The statistics aren’t much better when monitoring the response by co-workers. ➤➤ Less than 20 percent of employers will help a bullied target.

InnovatIve optIons for buIldIng exterIors

➤➤ Most bullying targets are seen by co-workers as kind, cooperative, and agreeable people. ➤➤ 23.5 percent of those who indicated they had been bullied stated that the bully did not act alone and that there were others involved. Workplace bullying is getting the attention of lawmakers as well who are efforting protection from workplace bullying. Currently, 29 states and two U.S. territories have introduced a version of The Healthy Workplace Bill (HWB), which is aimed at precisely defining an “abusive work environment,” providing specific rights for victims and protecting employers who take action against workplace bullies. So you want to increase productivity at your company? Make sure bullying is not the underlying issue for performance issues. Create a culture of caring. When co-workers get along, production rates are higher. Bullying is not just a schoolyard problem anymore. And it isn’t an employee problem, it’s an employer problem.

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More resources on workplace bullying: ➤➤ Workplace Bullying Institute www.workplacebullying.org ➤➤ Job Accommodations Network www.askjan.org ➤➤ Employer Assistance and Resource Network www.askearn.org

Visit us online at www.fnbmn.com Mankato 507.625.1121

St. Peter 507.931.4000 SEPTEMBER/OCTOBER 2017

Gaylord 507.237.5521 CONNECT Business Magazine

CHAMBER CONNECTION

Fairmont

Mankato

Stephanie Busiahn, Fairmont CVB

Julie Nelson, Small Business Development Center

We are thrilled to have the opportunity to host the 2017 4-H Shooting Sports and Wildlife Invitational, September 8-10, at the Martin County Fairgrounds and the Fairmont Trap Club! Approximately 800 young people will gather at this annual event to compete in a broad range of shooting sports, from archery and muzzle loading to air rifle and trap. We want to welcome the contestants, their families and their instructors as they visit our community!

As an SBDC client, you get much more than no-cost, customized assistance and training events. You have access to additional benefits and resources including: a 30% discount on QuickBooks Pro, QuickBooks Premier, and QuickBooks online; up to a 25% discount on Constant Contact’s email marketing program; industry profiles and financial data; and market research through SBDC’s exclusive national information clearinghouse. Apply for services at myminnesotabusiness.com and let us help you grow and succeed.

Blue Earth Cindy Lyon, Blue Earth Chamber

Region Nine Nicole Griensewic-Mickelson, Dev. Com.

The Chamber and CVB welcomes thousands of visitors to the Giant Statue annually. This summer has been giant as all the roads leading to and from are open. To date our volunteers report over 2,500 registered in the guest book and every state except Ohio and Mississippi have been represented. Countries represented are South Africa, UK, France, Canada: Nova Scotia, Ontario, BC, Alberta, Quebec and Manitoba, Switzerland, Hungary, Italy, Norway, Australia and Argentina.

New Ulm is asking residents to come together for a conversation on race. It’s Time to Talk: Forums on Race is a YWCA trademarked facilitation process utilizing trained facilitators to lead small table discussions on race. This free public event will take place on September 18 from 4:00 to 6:00 p.m. The forum will be held at the New Ulm Middle School. Register at www.newulm.k12.mn.us/ community-ed/. Region Nine is able to organize this event through support from the Blandin Foundation and BCBS of MN Foundation.

Fairmont Margaret Dillard, Fairmont Area Chamber

New Ulm Sarah Warmka, New Ulm Chamber/CVB

The Business Education Committee of the Fairmont Area Chamber will host their annual Teacher Recognition Banquet on Tuesday, October 24. This event is held each year to welcome new teachers to our community by providing them an opportunity to dine with and meet area residents and business people and aligns with the Fairmont Area Life project that encourages professionals to relocate and supports them once they do. Visit FairmontAreaLife.com to learn more.

Mankato Rosi Back, Greater Mankato Growth Greater Mankato Growth, Inc. and GreenSeam have partnered with MN Job Match and RealTime Talent to host Greater Mankato Jobs and the GreenSeam Talent Exchange. Both utilize a cutting-edge matching technology that is transforming the candidate recruitment process and streamlining how employers and candidates connect with each other during the job and internship search process–think “Indeed meets eHarmony”. Find your perfect match at: greatermankatojobs.com or greenseam.org/jobs.

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SEPTEMBER/OCTOBER 2017

The New Ulm Area Chamber of Commerce welcomes these new members: New Ulm Community Market & Co-op, CRUSH 80/20, Kiesling House Association, Bailey Creek Boutique, and Shoe Sensation (opening in late October). The Chamber board held a planning session in late July to determine the direction of the 2016-17 year. Network New Ulm, the Chamber’s leadership program, begins in September with a full class. September and October events include Modenschau Fashion Show (September 21), New Ulm Area Wedding Show (October 1) and Oktoberfest (October 6-7 and 14-15).

Nicollet Alesia Slater, Nicollet Chamber As summer comes to an end and families are taking their final vacations before the big first day of school arrives, take time to enjoy these last few days of summer. Keep a watchful eye out for the fall harvest machinery and school buses as they hit the roads. Fall sports will begin soon at the area schools. Come out and support your local talent. The Chamber is busy planning for Trunk or Treat,

Local Chamber & Economic Development News

Waseca

Le Sueur

Kim Foels, Waseca Chamber

Julie Boyland, Le Sueur Chamber

The Waseca Area Chamber’s 45th annual Business and Industry Recognition event will be held October 26th. The event recognizes local business and industry as a dynamic part of Waseca area’s economy. The Business of the Year recipient is recognized annually at this event. The Business of the Year nomination criteria is based on the timeliness and significant milestone events, longevity of the business, employee impact, successfulness, management philosophy and community impact. Check out the new Business & Community video on wasecachamber.com.

The 7th Annual Le Sueur County Senior Expo is set for Thursday, October 19th, 9:00-11:00 am at Le Sueur Henderson Middle/ High School Commons Area. This event is sponsored by the Le Sueur Parks & Recreation, Le Sueur-Henderson Community Education and the Le Sueur Chamber of Commerce. It features local vendors, guest speakers, health screenings, refreshments, and fun. Admission is free. Parent caregivers are strongly encouraged to attend. Please contact the Le Sueur Chamber office at 507-665-2501 for more information.

Hometown Holiday events. Continue to follow all our happenings at nicollet.org.

Lots that do not meet any of the above criteria will be sold at the assessed value.

St. James Jamie Scheffer, St. James EDA

St. Peter Emily Peck, St. Peter Chamber

We are pleased to announce the unveiling of St. James Artwalk, a new Billboard on Highway 60, a new community website, and watersports for rent! The Artwalk features new sculptures, planters and utility box art. The billboard on Highway 60 lets motorists know of events in our community and displays our new website, discoverstjamesmn. com. The City of St. James now offers kayaks and paddle boards for rent on St. James Lake during our Outdoor Pool hours.

Splashy events coming up at the St. Peter Chamber include Girls Night Out on October 5 and the Snowflake Celebration on November 18. We celebrated recently with ribbon cuttings at Hair Thairhappy, Diamond Dust Bakery and Harmon Agency– American Family Insurance. The Lavender and Linen Flower Shop and Gifts will open in the former Mom and Pop’s building in September. Rock Bend Folk Festival is September 9 and 10. Octoberfest is September 28 to 30.

St. James Joe McCabe, St. James Area Chamber Welcome to new business, St. James Pallets. The owner Tim Marsh and his family are restoring and renovating pallets which are resold statewide. Mid-September the first Mini-roundabouts on Highway 4, along with one block of parking in the business district will be open for local traffic. The two mini-roundabouts are being funded in part by the Federal Highway Innovative Grant program. The second phase of the Highway 4 project through St. James should be completed by November 1.

Sibley County Amy Newsom, Community Development The City of Green Isle has 9 lots available in their Industrial Park. Commercial Lots will be sold for $1 per lot when the business meets the following criteria: will create at least 2 full-time equivalent (FTE) positions based in the City of Green Isle. Commercial Lots will be sold for $5,000 when the business meets the following criteria: will create at least 2 full-time equivalent (FTE) positions. Commercial

Waseca Gary Sandholm, Waseca EDA Study shows potential for another hotel in Waseca – there is demand to be filled according to a recently released study for the EDA. See ci.waseca.mn.us/wp-content/uploads/2014/03/ Waseca-Hotel-Report.pdf. Waseca 2030 has been holding public input sessions for the community vision which will be released November 1st at the BEST Fall Business Summit.

Waseca Gary Sandholm, Discover Waseca Tourism As the summer heat fades with hints of fall color emerging, there are still a lot of things happening in Waseca. Farmamerica Fall Festival is September 9. Beer & Brats is October 5 at participating establishments. Farmamerica Haunted Corn Maze & Mill is on October 20, 21, 27 and 28. Treats & Streets takes place October 26, 5:00 to 7:00 PM. Looking farther out, planning for Sleigh & Cutter next February and SSQ throughout the year is ramping up.

SEPTEMBER/OCTOBER 2017

CONNECT Business Magazine

By Carlienne A Frisch Photo by Kris Kathmann

When you peel back the layers of their business enterprises, you find a family passionate about what they do. And about sharing it with others. The story behind the creation of Welsh Heritage Farms is, well, a juicy one. It was not Larry and Pam Harbos’ idea to start an orchard 36 years ago. The credit for the enterprise goes to Pam’s mother, Edythe Davis Peterson. Pam explains, “I grew up in Lake Crystal, and Larry grew up on a farm near Hanska. We were teachers; I taught in an elementary school in Prior Lake, and Larry taught high school in Jordan. My mother wanted us and our three children to return to this area, so she planted the seed in Larry’s mind that he could begin an apple orchard on one of the Davis family farms.” The invitation appealed to Larry. He says, “The idea behind the orchard business had a lot to do with going back to our heritage and to the land. Pam’s mother was 100 percent Welsh, hence the name Welsh Heritage Farms. The name Harbo is Danish.” Turns out picking the name was the easy part, getting apples ready to pick was a different story. Larry’s first responsibility was preparing the soil. “Some of the land used for the orchard was cropland, which made planting a bit more straightforward. The portions that were previously untilled got worked up to break up the turf layer. Rows were made with 15-foot tree spacing, and we drilled holes to plant the trees,” he says. By 1982, Larry and Pam had planted trees on six acres, with their older children cavorting about, while the youngest Tim was strapped to one or the other of his parents’ backs. (“I was too young to remember it,” he says.) Because the first apple crop was not ready that year, Larry imported apples from Le Crescent and tried selling them from an old tenant house he had converted to an apple stand on the farm site. The idea didn’t work, so the first sales continued > had to be made from the back of Larry’s truck.

CONNECT Business Magazine

SEPTEMBER/OCTOBER 2017

The husband and wife team of Tim Harbo and Libby Warren currently operate Welsh Heritage Farms and St. Peterâ&#x20AC;&#x2122;s Cheese and Pie Mongers.

Sweet Success

Larry and Pam Harbo with son Tim Harbo and wife Libby Warren.

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“We had 50 bushels of apples not readily accessible to the public (on Blue Earth County Road 115, off of Minnesota Hwy. 60),” Larry says. “So I went out to the highway and sold apples from the back of my pickup truck. We maintained a cash flow by having other jobs. Farming takes revenue. The first year I worked the orchard and Pam continued teaching in Prior Lake. The following year, I also farmed my home place near Hanska, growing corn and soybeans. Pam sold ads for a local publication, and she later sold typewriters and computers.” Even as the orchard led to expanded marketing of Welsh Heritage Farms apples and apple products, the Harbos continued to have flexible occupations away from the orchard, Pam as an insurance agent, Larry as an environmental consultant. Over the last nearly four decades, though, the Harbos found themselves fully engaged in and growing their business enterprises. To meet customer demand for pies, the Harbos arranged to have apple pies made in a licensed

Welsh Heritage Farms | Lake Crystal

“It offers an opportunity for families to enjoy themselves outdoors. It’s also a story of family commitment by two generations, hard work, and a passion for staying close to the land.” Mankato facility and then frozen. They sold the pies at the apple stand, a location that now drew customers, thanks to Larry’s promotion of it through radio commercials, newsprint maps and flyers. In 2004, the onsite licensed bakery was constructed and now employs several bakers. They opened a retail store in St. Peter in 2014. Welsh Heritage Farms, in rural Lake Crystal, and the Cheese and Pie Mongers, at 317 South Minnesota Avenue in St. Peter, are both Harbo family businesses, closely connected with each other. They are part of

the 28 million small businesses in America that account for 54 percent of all sales in the United States, according to the U.S. Small Business Administration. The SBA’s figures show that small businesses, which have increased 49 percent over the past 35 years, provide 55 percent of jobs in this country and occupy one third to one half of commercial spaces. The Harbo enterprises also have experienced growth, increasing by about 20 percent in sales annually, according to Larry Harbo. He says, “Welsh Heritage Farms produce a

specialty crop, it’s a specialty business and it’s a seasonal destination business. It offers an opportunity for families to enjoy themselves outdoors.” It’s also a story of family commitment by two generations, hard work, and a passion for staying close to the land. The store at Welsh Heritage Farms specializes, of course, in orchard-fresh Minnesota-grown apples and apple products, including pies, doughnuts, and cider— both sweet, unpasteurized cider and hard cider. They also offer a variety of mostly locally made or locally sourced products, including jams, jellies, honey and popcorn, as well as various other pies and cheeses. The man behind the hard cider addition is Tim Harbo, Larry and Pam’s youngest offspring. (Tim’s older siblings, who also grew up in the apple business, are engaged in other pursuits.) Tim and his wife, Liberty Warren (who prefers to be called “Libby”),

Sweet Success

Easier Picking With The New Trellis System The Harbos are in the process of converting the majority of the orchards from a more historically standard orchard configuration of apple trees on semi-dwarfing rootstock to a fully dwarfing rootstock on a trellis system. What this means is an increase from about 250 trees per acre to around 1,000 trees per acre and easier picking during the apple season. “The semi-dwarfing trees generally range from the 15’ to 25’ trees that are self supporting and planted in rows around 15 feet on center between trees,” Tim Harbo says. “They are a more vigorous tree for growth and have a strong root system that allows for not having irrigation. But they do require more work when it comes to maintaining them–with pruning in the winter and more ladder work for apples in the fall, because we can’t reach any of the upper areas of the tree without a ladder. “The fully dwarfing trees that we are putting in are planted in rows with three feet between trees, but because of their weaker root system, they need support and irrigation to thrive,” he says. “Our trellis system is a tall spindle style of trellis with

large poles spaced out along the row, with angled end posts vertically about every 30 inches up, to support the tree as it grows. You end up with about a nine-foot tree that should be producing apples within three years of planting. “The fact that these trees are smaller also allows for greater ease when it comes to pruning during the winter,” he says. “You’re looking at a far lesser number of cuts and, thus, less wood to be removed from the orchard in the spring. This also allows for much easier picking during the apple season, as most of the work can be done from the ground and one side of the tree. The less labor intensive we can make the orchard, the better. The idea is that as I get older, I’m hoping to make the work somewhat easier. “It has been an exciting new learning experience for us,” he says, “with the orchard transitioning and changing from one generation to the next in harmony with the rest of the business. It’s that fine balance of maintaining the past as we move into the future that we hope keeps people coming out to see us at Welsh Heritage Farms.” SEPTEMBER/OCTOBER 2017

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Tim has been managing the apple trees for three years, a natural direction for him to take. “Growing up in the business, it’s all I’ve ever done since I was a kid. My jobs were always in the orchards." have been moving the dual business forward since 2014. Libby says, “Tim and I live this. It’s 100 hours a week for each of us. We’re passionate about it. We opened the Cheese and Pie Mongers to have expanded locations, including a year-round pie and cheese selection for customers.” (Readers of historical fiction may know that a monger is a dealer, broker, or trader in a specific commodity, a common example being a fishmonger.) With the founders now retired, the businesses are run year-round by part owner Libby. Tim continues to handle the advertising and marketing content creation for both businesses and, like his father, as an environmental consultant–that is when he isn’t working in the orchard’s cider house

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At the Core Favorite high school classes? Tim: “Mythology. I also liked English and math.” Libby: “Art, because I like creating things.” What do you wish you had studied? Tim: “Accounting and other business classes.” Libby: “I have a BS degree in philosophy, with a minor in law enforcement, and an Associate Degree in horticulture. I think studying philosophy taught me critical thinking in decision making, not to have preconceived ideas. That is useful in the apple orchard, where there are so many variables. A bad storm can change the entire season.” To what community organizations do you belong? Tim: “We are Chamber of Commerce members in both cities–Lake Crystal and St. Peter.” 50

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Welsh Heritage Farms | Lake Crystal

or contemplating the next tasty business expansion. Tim has been managing the apple trees for three years, a natural direction for him to take. “Growing up in the business, it’s all I’ve ever done since I was a kid. My jobs were always in the orchards. At age seven, I picked strawberries and led ‘you pick’ groups, working together with my sister, who was 10, and my brother, 14. We had only ‘you pick’ strawberries back then, as we picked all the apples ourselves for retailing at the store,” he says. Tim’s current responsibilities include spraying the orchards and managing the picking, which is done by a seasonal crew of three or four part-time employees. He also spends about eight hours a week coring, slicing, peeling and quartering apples for pies and other baked products and for making cider. Together with Libby, he decides on new varieties of apples to be planted. His degree in journalism and public relations from Minnesota State University, Mankato prepared him to handle all advertising and marketing for both businesses. You might hear his voice in radio and television commercials that invite the public to Welsh Heritage Farms and the Cheese and Pie Mongers. In addition, Tim advertises both businesses in area newspapers, on Facebook and with other social media. The six-acre orchard now boasts 2,400 trees that include 18 apple varieties. Fifty recently planted trees, called “First Kiss” (and officially named Minnesota 55), should produce a crop in three years. Tim describes the orchard’s varieties “We have early-season varieties, like

Paula Red and Beacon, that we pick in early August. We also have Heirloom varieties, such as Wealthy (which are in high demand for pies), we have Fireside, Regent, Honeygold—and so on. Of course, we have Honeycrisp and SweeTango, some varieties, like Honeygold, are hard to find in stores because they’re not good for shipping. We pick them gently. Then there are the crisp, tart varieties, such as Haralson, a harder, firmer apple that has density. A softer apple, such as Paula Red and Macintosh, may soften after picking. The early varieties tend to soften quickly.”

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Sweet Success

“Quality produce is a market you don’t get on the internet. Small shops, with locally produced, fresh pies, are a trend. We sell 12,000 to 15,000 pies annually. Our holiday sales on Thanksgiving, Christmas, Easter and National Pie Day (January 23) are huge,” Tim explains. The orchard is a family-friendly destination, especially from late August until the end of November, or until there are no apples left on the trees. A typical weekday during the season generates 75 customer transactions, with 500 transactions taking place on a weekend. People are drawn to Welsh Heritage Farms, not only for apple picking, but for other events as well. Libby explains, “People come out here for a day of activities. We have events on September and October weekends—horse rides, face painting and crafting, such as making stepping stones and fairy doors. We also have tours behind the scenes, with Larry doing the orchard tours, which involves showing people the packing house, where the apples are washed, sized, stored, peeled, cored, etc. People enjoy seeing the cider pressing. Of course, we have school classes visiting and preschool tours, especially in September.” Adjacent to the packing house, where employees clean, sort and bag apples for sale, is the Cider House, one of the newer buildings on the farm property. It’s a separate business, with licensing for alcohol 52

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sales, open weekends in September and October. The Cider House has both alcoholic and non-alcoholic ciders available, along with cheese and crackers. Customers can relax on an attached deck and enjoy a view of the orchards. Libby says, “We’ve entertained Red Hatter clubs as well as groups from assisted living facilities. We offer samples—cheese and crackers, pie, cider—for them to enjoy. We also have indoor seating and picnic tables on the terrace. And we retail cheese blocks here. Cheese and apples are happy friends; they go together.” Although Libby and Tim know the concept of pairing cheese and pie is not unique, they said that their idea of having a store exclusive to the two foods is unique. Libby explained, “When we travel, I look at pie shops, but we haven’t come across one that also has cheese. We have visited many cheese shops in Wisconsin, but none had pies.” Adjacent to the Cider House is the apple stand, with the retail store, bakery and packing house nearby. Pies, made on site in the licensed commercial kitchen,

SEPTEMBER/OCTOBER 2017

include not only apple, but also strawberryrhubarb, peach, cherry and strawberry. Fresh peaches, imported from Missouri, are available in July and early August. Another treat is apple cider doughnuts, which are available throughout the season. The pie selection is much larger at the Cheese and Pie Mongers, where the menu offers more than 40 kinds of pies, including sour cream and raisin, bumbleberry, grasshopper pie, rhuzaberry, push-up pop pie, lazy day razzmonade pie—and the list goes on. The 150 varieties of cheeses include some unusual choices, such as Pesto Jack, Hook’s Blue Paradise, Big Woods Blue and Portobello Mushroom Abergele, as well as the more common mild and aged cheddar and baby and aged Swiss. All of the pies are made on the premises by a team of bakers, including Sheryl Utter, the primary baker, who also is the manager. Her credentials include having baked pies at Welsh Heritage Farms and claiming Larry Harbo as a cousin. The Cheese and Pie Mongers operation fits the current consumer trend of shopping for locally-produced items.

Welsh Heritage Farms | Lake Crystal

St. Peter retail space because I grew up in St. Peter. But this building, which was rebuilt around the 1940s, does not offer us the space for seating. Our vision was a place where customers could buy some cheese and a pie to take home to share with friends and family. If we ever get to the point where we would move into a larger facility, seating is definitely something we might consider,” she says. Although Libby handles the financial and administrative tasks for both locations, she spends a bit more time at the orchard from July through November, and at the Mongers the remainder of the year. She relies on Utter to manage the three part-time, multipurpose employees who bake pies and who wait on customers. Libby says, “When you come in to the Mongers, you’ll be talking with the person who made your pie.” In Lake Crystal, Libby orders supplies for the orchards and oversees the bakery and the packing house. She also trains and

manages seasonal employees. “Since we remodeled the bakery here, we can bake 30 pies at a time,” she says. Libby sees unlimited growth potential for the Cheese and Pie Mongers. “I’m glad we didn’t listen to people who were definitely skeptical about us opening this shop. When we started, the goal was to retail year-round and to expand the cheese and pie selection, using dual advertising and promotion for the businesses. Both businesses have been growing each year. Over the past twoand-one-half years, we have seen a yearly growth of 10 to 15 percent. We definitely have seen customers from the orchards here in St. Peter, and some have asked me to bring apple doughnuts from the orchard store. Here at the Cheese and Pie Mongers, I also promote the weekend events we have in Lake Crystal. But as much as we try to talk about both places, some people don’t yet make the connection. “Our goals with both businesses are to

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Welsh Heritage Farms | Lake Crystal

Sweet Success

THE ESSENTIALS

Welsh Heritage Farms Mankato: 20758 528th Avenue Lake Crystal, Minnesota Phone: (507) 726-6562 Web: welshheritagefarm.com Facebook: Welsh Heritage Farms

continue growing,” Libby continues, “and we are open to moving, perhaps opening in an additional location. We are open to the ideas of doing community events and farmers’ markets. We’ve always been willing to take risks, but we are into conservative growth, perhaps starting with producing all of the pies in one location. Unfortunately–or fortunately–nothing truly prepares you for running your own business. It’s really a matter of hard work and passion.” Carlienne Frisch writes from Mankato.

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CONNECTING BACK

5 YEARS AGO

SEPTEMBER/OCTOBER 2012 Five years ago entrepreneurs Kevin and Kathy Finstad of New Ulm graced our cover. Together, the duo was steering the way for River View Sanitation. Feature stories at that time were on Compart Family Farms in Nicollet. President Jim Compart referred to his Compart Duroc branded pork as the Black Angus of Pork. Also featured was Powder Werks. 10 YEARS AGO

SEPTEMBER/OCTOBER 2007 A decade ago we featured a man that has made great strides in our community since that interview, Mike Drummer, greater Mankato land developer and small business owner. Dr. Linda Nussbaumer of Lake Crystal was also featured. And we talked to the folks at Jubaâ&#x20AC;&#x2122;s SuperValu in Blue Earth. At that time they were considered the last of a dying breed, an independent, friendly small-town grocery outlet battling off the encroachment of superpowers like Walmart. 15 YEARS AGO

SEPTEMBER/OCTOBER 2002 Fifteen years ago Mark Davis was our cover story. Featured profiles that issue were New Ulm Furniture and Najwaâ&#x20AC;&#x2122;s Catering of Mankato, a company that started with a simple sandwich, the now famous Schwarma! 20 YEARS AGO

SEPTEMBER/OCTOBER 1997 In 1997 our cover featured Bob Wettergren, also known as Mister St. Peter. A long-time active member of the St. Peter community, Wettergren at one time worked at Wettergren Dairy and ran the St. Peter Chamber of Commerce for many years. Other companies featured this issue were The Ryter Corp. and Crown Fixtures, Inc which was owned by attorney Herb Kahler.

Read the entire articles at connectbiz.com

COLLABORATION CONNECTION: SPECIAL REPORT

Racial Justice Training How One Local Nonprofit Is Helping Businesses Embrace A Changing Population By Lisa Cownie

When Kurt Brauman found out Walmart was transferring him to Mankato, Minnesota from Mount Pleasant, Iowa to work logistics at the new distribution center, well, he wasn’t sure what to expect. Mankato would be a community much bigger than where he came from. “I am from a small, tight-knit community in Southeast Iowa and there is not much diversity,” says Brauman. “So I brought that small-town mentality to Mankato. But, honestly, it was so refreshing to come here and see all of the diversity!”

the root causes of racism rather than merely its symptoms, has led YWCA Mankato to become a valued resource in helping the growing business community in our region seize on the diverse, and often untapped, sources of talent in our area. “Today’s bottom line is that the world is changing, and our community is changing right along with it,” says YWCA Mankato Executive Director Barb Dorn. “We need to be prepared for more diversity in our workforce, and to become better at attracting, recruiting, and retaining people who

Refreshing to Brauman, but he could clearly see that in order to do his job most effectively, he needed to have a greater understanding of the diversity he found. “Walmart is such a diverse company, it’s important for us to educate all of our associates in regard to diversity training,” he says. He found the resources he needed at YWCA Mankato, an organization that has made it its mission to go beyond traditional diversity training with its Racial Justice programming. Bringing this approach to Greater Mankato, focusing on addressing

look different than the majority population here. If we don’t prepare for these changing demographics, and if we don’t begin to see increasing racial diversity as an asset, then I believe we will miss a tremendous opportunity to build our workforce and to strengthen our community economically, socially, and culturally. I don’t want to see Greater Mankato miss that opportunity, and I also don’t think we can afford to do so.” YWCA Mankato’s cultural competency trainings lay the foundation for this work by addressing the invisible and subtle

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differences between cultures, and helping provide cross-cultural understanding. These trainings focus on identifying stereotypes, differentiating between bias/ discrimination/racism, discussing the difference between refugees and immigrants, and heightening awareness of cultural differences. The YWCA then carries this work forward with three additional offerings: “It’s Time to Talk: Forums on Race,” a trademarked racial dialogue facilitation process that involves trained facilitators leading small dialogue circles about race and racial justice; “Confronting Racism: Minnesota Style” workshops designed for those who want to acquire skills in dealing with racism as it occurs in their personal lives; and customized training sessions, as YWCA Mankato recognizes that nuances often exist within organizations, and therefore tailor sessions depending upon the need and circumstances of each organization. Brauman was one of the first to jump on the opportunity for Racial Justice training not only for his employer, but for himself. “I took this on personally,” he says. “We have a big Somali presence in our workforce, particularly in the warehouse. I could see there was some misunderstanding going on. So I brought in the YWCA to do a customized training session. We had placed a two-hour time limit on it, but the overwhelming feedback from my managers was that it was so impactful, it could have even gone on longer. They just had so many questions. That’s a sign it is needed.” And Brauman wanted more. So he attended another workshop offered by YWCA Mankato. “One of the best things about their workshops is the open forum,” he explains. “I attended one with two of my employees. We got to hear first-hand experiences

with racial tensions in our community. It was just good to hear those different perspectives and understand how to handle different situations. Forums allow people to talk in a setting where they didn’t have to be afraid to talk about it.” Dorn says that is one key to the YWCA’s Racial Justice training, as it can be customized to make sure each business participating is comfortable. “Context for these conversations is so important,” says Dorn. “Oftentimes the first step is simply to help people become more comfortable with being uncomfortable. Make no mistake about it: conversations about race make people uncomfortable, and that’s a very good thing. It’s how we grow, change, and become better equipped to move forward. It makes us stronger, both as individuals and also as a community.” It is an issue top of mind for our business community. So much so, that Minnesota State University, Mankato College of Business sees the value in making sure their students, our future workforce, are exposed to it early. “We held an “It’s Time to Talk” session in order to prepare our faculty and staff to help all students be successful,” explains Dean of the College of Business Brenda Flannery. “We’re also starting to do more things with our curriculum in order to address opportunity gaps between white students and students of color. We feel very strongly about supporting and welcoming all students into the College of Business, and seeing all students succeed.” The YWCA is really just getting started with its Racial Justice programming. Its first event in December of 2015 led to increased demand for more racial justice programs and training, and this work has been growing extensively ever since for the organization. “We recognize that racial justice work is complicated, particularly in a predominantly-white community,” stresses Dorn. “But if you look at the definition of justice it clearly aligns with YWCA’s mission to eliminate racism and empower women. As an organization dedicated to this mission, of course it’s the right thing to do. But racial justice is also an economic imperative, increasingly and dramatically so, and YWCA Mankato is committed to helping

create the racial and economic vibrancy which is so often synonymous with a successful community. I believe that would be the ultimate outcome for YWCA’s racial justice programming: an indisputably successful Greater Mankato for all.” Brauman couldn’t agree more and encourages others in the business community to follow Walmart’s lead, no matter their size or industry.

Brauman says, “I would absolutely encourage other businesses to engage in this type of training. And we are so fortunate to have resources to carry it out right here in our community. There is no reason businesses should not be taking advantage of this.” For more information on how you can get this training in your business or attend the next “It’s Time to Talk” event on December 5, please email executivedirector@ywcamankato.org or visit mankatoywca.org.

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SPECIAL TO CONNECT: NEW SOLUTIONS TO WORKFORCE CRISIS

Finding Workforce Solutions By Dr. Shane Bowyer When I sat down to start writing about talent and workforce, my thoughts went so many directions. Jobs. People. Recruitment. Retention. Training. Education. Most of my career has been in education so that would be the easy place to start; however, the workforce situation in Greater Mankato is far from easy. Demographic studies of Greater Mankato predict a looming shortage of people to fulfill the available jobs. Employers are struggling to find people to fill positions now and further agonize over the numbers that show we will be 3,000 people short by 2020 and that number is projected to double by 2025. To make matters worse, Greater Mankato is not alone in this problem as workforce shortages are predicted across the state and midwest. The Twin Cities 16-county metro is predicted to be more than 100,000 people short while southeast Minnesota estimates their number at 45,000. Businesses, nonprofit organizations, education institutions and governments in Mankato/North Mankato have been taking steps to address the workforce shortage issue. This past January, Greater Mankato Growth convened more than 160 community members for the first of two Talent Summits to bring people together to tackle the workforce issue. Out of the Summits five workgroups were formed: Demographics, Workforce Talent Preparation, Competitive Compensation & Benefits, Innovative Recruitment & Retention Initiatives and Public Policy. Those five workgroups recently presented to a newly-formed Executive Talent Council which will help guide and prioritize their innovative ideas. The workgroups showed passion, dedication and a true desire to strengthen our community by confronting the workforce issue head on with creative ideas. I have been fortunate to assist GMG in supporting the workgroups as they move forward and saw first-hand all their hard work. Two ideas that came forward through this 58

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process were a one-stop place for jobs and a website supported by a complementary marketing campaign showcasing the incredible communities in which we live, work and play. Thus, greatermankatojobs.com and the Kato eXperience were created. Greatermankatojobs.com was launched in June and is gaining traction as a portal for jobs in our community, but is also connected to a larger network across Minnesota and other states. The portal is a modernized job-matching tool that connects job seekers to employers – think Monster meet eHarmony. The portal goes beyond just posting jobs as it matches candidates to positions through a series of profile questions. I encourage you as a business professional, either looking for employees or looking for a new position, to check out the site. Businesses have been asking for this tool for several years. It is now available and our communities need to embrace the portal to populate it with both job-seekers and employers as GMG will soon be launching a marketing campaign outside of the region to attract people to our area. A few weeks ago, I was with some classmates from our Mankato High School and we talked about the jobs issue in Mankato. Of the six friends playing cards that night, all had moved away from Mankato and five eventually moved back for various reasons. My family moved back from St. Louis to be closer to relatives after our first child was born. The others returned to Mankato/ North Mankato for reasons such as a better place to raise kids and quality education system, a professional career move and even to start a business. We don’t see each other that often because of the busyness of our lives – which is generated by the numerous entertainment events, youth activities and outdoor experiences in the community. One of those friends has a onehour commute, similar to many metropolitan commuters. But unlike the big city folk, he passes 50 miles of beautiful landscape at 60 mph instead of reading license plates

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going 10 mph. Another one of my card buddies flies nationally or internationally almost every week and getting to the MSP airport is an easy drive. But many people have never looked at it in that manner. I could go on and on about the great aspects of our community – the intangibles we all experience on a daily basis. Even though my friends and I observed many of the same things growing up here, we moved away; not for greener grass, but for brighter lights. Soon the bright lights dimmed and we missed the green grass where we could raise our kids in a warm and inviting community that also offered us a place to be fulfilled professionally. We found that right here in Greater Mankato. In November I will tell you how Greater Mankato is planning to showcase our community to other regions to attract talent to confront the workforce shortage. The Kato eXperience, launching in October, will be an innovative portrayal of our community through virtual reality, 3-D videos, picturesque photos and ambassador videos. Dr. Shane Bowyer is the Talent Initiative Consultant for Greater Mankato Growth and Assistant Professor in the College of Business at Minnesota State Mankato. He can be reached at greatermankatotalent@gmail.com.

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Very New or Re-formed Businesses or Professionals New To Our Reading Area

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Connect The Grey

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Janie Hanson’s story begins on her family’s corn and soybean farm in Southern Minnesota. But each chapter in her life since then, from pursuing an MBA at Columbia University, to working at GE, to opening an art gallery in New York’s lower east side, has built to the climax of her life’s story: starting a company that brings creative perspectives into the business world. Hanson founded Connect the Grey to help professionals and organizations learn the creative practices that lead to innovation. “We strive to draw from art, science, business, and community to help businesses navigate complex issues,” says Hanson. “Our services currently focus on talent, culture, and story: finding and training the people who help you succeed; creating an environment that engages employees and cultivates innovation; and communicating successes and challenges along the way.” Connect The Grey opened an office in Mankato earlier this year. “Through conversations with community leaders, we have experienced the Mankato community’s strengths and opportunities, and we see that the city is ripe for creative problem-solving,” says Hanson. “Mankato’s rapid growth, workforce shortages, and changing demographics will require new thinking about recruiting and retaining talent, and about building engaging workplace cultures.” As the company has grown, it has added two longtime Mankato community members to the team: Katie Boone, who

founded the collaborative and entrepreneurial space Envision Lab and regularly works with community groups as a consultant and facilitator; and Pam Coughlan, who has worked in health and wellness for more than 30 years and has been involved in several local organizations. The name, Hanson says, reflects the core of what they do. “In our brains, information is stored in the grey matter, but new ideas and learning come from the white matter: the connections between the grey. Connect the Grey activates unexpected intersections to help people step outside their comfort zones, learn, and practice new skills,” she says. CONNECT THE GREY Phone: (612) 355-1599 Address: 1515 North Broad Street Website: connectthegrey.com

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South Creek HR LLC Crystal Hanson is a patient woman. While she always entertained the idea of owning her own firm, she spent more than a decade honing her skills in various corporate human resources roles before making that leap. “Throughout my time in Corporate, I often wondered how small and midsized businesses handled the increasingly challenging environment of keeping up with changing state and federal laws and how they navigated complex employee situations,” says Hanson. Hanson felt she was at the point of being able to help. “While I very much enjoyed my role as HR Manager at the 3M Plant in Fairmont (the role I had before launching South Creek HR) and loved working with my peers there, I kept coming back to this long-term vision of entering the world of HR consulting, specifically to serve small and mid-sized businesses where I perceived there was a need,” she says. So in the summer of 2016, she put some feelers out. She quickly had a company come on board as a client, and South Creek HR was born. Based in Fairmont, she primarily serves the agricultural and manufacturing industries. Although she says her company is ideal for any business that has from 20 to 100 employees. South Creek HR can either act as a Human Resources Department or support existing departments in a business. “Many small and mid-sized businesses have internal resources doing HR work, but those resources may not necessarily have the background or expertise to confidently know if the

HR work they’re doing is in compliance with the various state and federal laws. And that’s where South Creek HR comes in,” says Hanson. “There’s a lot more to human resources than hiring and firing. There’s also coaching, discipline, policy development and interpretation, reward, recognition, performance management, training and development, compensation, employee relations, conflict resolution, employee satisfaction, company culture, attendance management, anticipating issues before they happen, design of HR systems, protecting the company, and more. And you must make sure you’re doing all that in compliance with state and federal laws.” She primarily serves South-central Minnesota and Northern Iowa. SOUTH CREEK HR LLC Telephone: (507) 951-6059 Website: southcreekhr.com

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Schell’s Starkeller Brewery

ART SIDNER

It’s been a labor of love for Jace Marti. Many years ago he so enjoyed the taste of “sour beers” he knew he wanted to try it himself. So he began quietly laboring away, making sure to do it right. “The Starkeller began with just a single tank inside the brewery,” explains Marti. “Every beer in our sour beer line is aged in one of our original, cypress wood lagering tanks that were built inside the brewery in 1936. We started restoring the first tank in 2008, and brewed the first beer in 2012.” And Schell’s Starkeller Brewery was born, Minnesota’s first sour-only brewery. After the first beer was released in 2013, Marti started restoring another identical tank he found in the brewery. The innovative “sour beer” has proven to take on with Schell’s regulars and new market too perhaps. “As the popularity of the series continued to grow, we decided to build a place entirely dedicated to the sour program, and with that, we pulled the remaining 8 tanks out of storage and moved them to what is now the Starkeller,” he says. “We now have a dedicated production space and a very unique and functional taproom/fermentation cellar, where people can sit and enjoy our sour beers alongside the wooden tanks.” Opening in March of 2017, Schell’s Starkeller Brewery is also unique in that the décor is like a walk through history, with many mementos from Schell’s long history in New Ulm. No

doubt about it though, Starkeller is focused on the future. A unique name for a unique beer. “The name for our line of sour beers is the Noble Star Collection, and the place where those beers are made is called the Starkeller. ‘Keller’ in German means ‘cellar,’ so literally Star –Cellar, but Germans like to combine their words into longer ones, hence ‘Starkeller’. Starkeller is open every weekend. SCHELL'S STARKELLER BREWERY Address: 2215 N Garden St Phone: (507) 359-7827 Web: schellsbrewery.com

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