Edge March 2009 by Janet Rorholm

MARCH 2009

Culture Club

Businesses reach out to GLBT employees, customers

Dealing with Change

page 16

Help employees embrace, not resist change page 6

Going Global www.edgebusinessmagazine.com P.O. Box 511 â&#x2013; Cedar Rapids, IA 52406

Understanding cultures key in todayâ&#x20AC;&#x2122;s global economy page 10

Come together. At Alliant Energy, we are committed to diversity – not just in writing, but in our actions. We work diligently to attract, retain and develop a diverse workforce, and also to nurture rewarding community partnerships. Our involvement includes support of employee volunteering and the extensive use of diverse suppliers. Just how far can hard work, imagination and determination take you? It’s time to ﬁnd out! Visit us at alliantenergy.com to learn more about career opportunities. In addition to a wide range of professional and technical careers, Alliant Energy has a dynamic Supplier Diversity Program. Take part in our 2009 Supplier Diversity Symposium on April 24 in Dubuque. See alliantenergy.com for details.

MARCH 2009 ■ EdgeBusiness

CONTENTS

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About us VOLUME 5 ■ ISSUE 7 ■ MARCH 2009 Online: www.edgebusinessmagazine.com E-mail: theedge@gazcomm.com EdgeBusiness Magazine is a monthly magazine for business owners and executives in Iowa’s Technology Corridor and is published by Gazette Communications Inc.

Staff Editor: Janet Rorholm (319) 398-8469 Art director: Rachel Young Photography: Mark Tade Advertising: Mary Reeder (319) 368-8506 Contributing editors: George C. Ford

Permissions: The content of EdgeBusiness Magazine

may not be reprinted without written permission. If you have questions about reprinting The Edge content, call (319) 398-8328.

20 24

Cover story: Businesses

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Help employees embrace rather than resist change

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actively reaching out to GLBT employees, customers

Understanding cultural differences crucial in today’s economy Corridor makes progress in promoting diversity Business owner puts in rituals, gains efﬁciency

Departments 5 8 12 13 14 15 18 22 23 26 27 28 29 31

Toughest Decision Human Factor Accounting Corridor News Marketing on the Edge Newsmakers Legal Economic Development Book Review Improving Quality Barometers Calendar Digest Efﬁcient Workplace

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YOUR BUSINESS

SOLUTIONS

STARTED WITH CANON You probably have good reasons for choosing Canon. Maybe it’s our innovative

technology, which redefines document management. Or it could be our commitment to quality and value. Whatever your reasons, we are honored to serve your needs. Our network of Authorized Canon dealers is committed to providing the best sales, service and support of the Canon brand. And our flexible financing programs help you maintain solutions that fit your budget. Of course, we know you have other choices. But our job is to ensure you’ve made the right one. So we will continue to provide your business with the capabilities that make Canon the top-ranked brand in the overall copier market.* All the reasons you chose Canon for in the first place are here for you now and in the future.

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TO STAY WITH CANON Local Authorized Dealer: ADVANCED SYSTEMS ADVANCED SYSTEMS INC. 4330 Czech Lane, Cedar Rapids 319-832-2891 or 800-274-2047 www.asiowa.com Canon is a registered trademark of Canon Inc. in the United States and may also be a registered trademark or trademark in other countries. ©2008 Canon U.S.A., Inc. All rights reserved. *According to Gartner Dataquest database report titled "Printer, Copier and MFP Quarterly Statistics United States: Database" for laser copier market share position for 2003 through the third quarter of 2008, published in November 2008, by Gartner Analyst Federico de Silva and others.

EdgeBusiness ■ MARCH 2009

Advertisers

INDEX Connections Diamond V Mills Diversity Focus ESP International GE Commercial Finance Henry Russell Bruce Long-View Consulting Outlook Iowa City Rockwell Collins Ruth Consulting Group Schaus-Vorhies Cos. Tero International Inc. University of Northern Iowa Wits About You

Page 17 10 16, 20 10 17 7 7 17 16, 20 7 24 11 6 6

Editorial

INDEX

Page Advanced Systems 4 Alliant Energy 2 Americlean 19 AW Welt Ambrisco Insurance Inc. 19 Blank & McCune The Real Estate Co. 8 City of Iowa City Human Rights Commission8 Coldwell Banker 8 Delta Dental 18 Design Ranch 28 Diversity Focus 32 Farmers State Bank 11 Holmes Murphy 25 Honkamp Krueger & Co. 15 Kirkwood Center for Continuing Education16 Kirkwood Training & Outreach Services 21 Metro Studios Inc. 3 Mount Mercy College 9 Old Capital Screen Print 4 Pioneer Graphics 30 The Mansion 15 Toyota Scion of Iowa City 9 World Trend Financial 7

MARCH 2009 ■ EdgeBusiness

MY toughest

DECISION

s we begin our 12th year of Design Ranch Store in Iowa City, we are reflecting on our experiences over the years and attempting to forecast our plans for the future. First things first, our retail history is made up of exciting years filled with fun projects and amazing people. Design Ranch is an Iowa City retail store specializing in quality classic and contemporary furniture and gifts. We are considering whether a traditional, local retail business is a tenable arena to spend our professional careers and how our model might change to suit current shopping styles. Let’s be straightforward. Opening a retail store is risky business. Merchants who open their doors have an almost mystical belief that their products and services will impart something special to their customers’ lives. This year is projected to be a tough year in retail. With worldwide financial worries and everyone resolving to save rather than spend money, Design Ranch is facing its biggest challenge to date. As everyone who reads the news knows, the buying public no longer relies on shopping locally. Instead, many people have become virtual consumers, traveling the world via the Internet, shopping “Big Box” Internet providers for the best deals. We cannot fault consumers for trying to get the most from their resources. The Internet retail shift has been further bolstered by media stories. Journalists recommend that

Gary & Chris Gnade

Design Ranch Store smart shoppers surf the Web to find bottom-dollar prices. Has this resulted in a cultural shift away from locally based buying and reliance on personal relationships with local experts? Here are our core beliefs and practices that have structured our retail business, and why we believe personal buying relationships are so important. Regardless of how we update our business this year, these are values and actions to which we will remain steadfast in 2009: 1. A great design concept well implemented makes low-impact living easy. For example, rather than purchasing a poorly made sofa that might end up in a landfill, wasting both resources and precious time, a well-conceived sofa made of high-quality materials and by a reputable, responsible company can last a lifetime and even become an heirloom. 2. Being designers ourselves, we value the unique vision that an individual contributes to product development. If a single person or team brings their unique talents to the task and is willing to put their name and reputation on the line, the results will be far better than the anonymous designed-by-committee product. 3. We love being experts in our field, and in turn sharing our knowledge, so we often sponsor educational design events for the public. 4. We enjoy doing the legwork to find lasting, high-quality products from all over the world. 5. We love utilizing our relationships with manufacturers to bring a diversity of products and design aesthetics and solutions that would not otherwise be available in our community. 6. We provide a showroom to give our customers the opportunity to experience these special products firsthand. We get to know our customers so we can guide them to purchases that will serve them, and support traditional hometown-store values by providing cordial delivery and gracious service. 7. We know that local businesses provide healthy contributions to our community and local economy. The local jobs and tax revenue created supports our schools, roads, police force, and many other services and organizations.

Gary Gnade Age: 57 Title: Co-owner Hometown: Cedar Rapids Residence: Rural Johnson County

Chris Gnade Age: 61 Title: Co-owner Hometown: Bettendorf Residence: Rural Johnson County

For us, these values come together to support the goals of a sustainable lifestyle that respects the needs of the people, the environment, and the community as a whole. For us, it just makes sense to do business this way. Why can’t these traditional practices be successful in 2009? They can. They can because of our loyal shoppers who drop in after working out at the local gym, folks who reliably shop for the holidays, register their weddings and depend on us for that perfect gift. They can because of architects and interior designers who use us as a resource for their clients and international visitors who find their culture represented by one of our products. We appreciate our customers who daily thank us for providing the products they love and the unique atmosphere our store holds for them. We were delighted when our ambience was recently enhanced by the regional vocal quartet, “Indigo Blend,” who included us in their December holiday tour. As consumers ourselves, we participate and complete the circle by shopping locally. In this economy of 2009, our core beliefs remain. The big question is, will our customers continue to value and support the choice of purchasing products locally and value our knowledge and personal relationship? Will our shoppers agree that lasting, quality furniture and gifts are a good investment? As we evaluate our options for 2009 we’re keeping our fingers crossed that the public will recognize and care about our offerings and, as always, we’ll delight in serving them.

EdgeBusiness ■ MARCH 2009

with

DealingChange Help employees embrace rather than resist change

By Janet Rorholm

hange is pervasive today in many businesses, especially as the economy prompts layoffs and reorganizations. Not all changes are so dramatic, but any change can be difficult to navigate since change is usually viewed unfavorably. “It always comes back to fear. Fear of the unknown,” said Jayne Witte, associate professor of communication studies at the University of Northern Iowa and professional development coach with Wits About You. Because you can always expect some resistance to change, the key to making

change go as smoothly as possible is to get employees involved with the change, experts said. “The main thing is how do you get people on board with change,” Witte said. “Do you want to do the work on the front end or the back end? “My No. 1 suggestion is that you do the work on the front end because it’s a lot easier that way... If you just implement change, you will have to deal with the fall out and it’s going to be much worse because they are not prepared and they will feel betrayed,” she said. One reason why people don’t like change is that change usually means learning something new, Witte said. “People think they will not be able to cope or they don’t have the skills needed. People also don’t want to look like they are incompetent, ” she said. Helena Long, vice president of Ruth Consulting Group and principle at LongView Consulting in Cedar Rapids, said everyone has different attitudes toward change. Some people who find change difficult, might have trouble sleeping and focusing. They can become tense, stressed out and worry more. They might have nightmares and become depressed. Then there are others who like change. They can become excited, which can be distracting, too, Long said. Age can often determine how receptive we are to change, experts said. “As you grow older you start to get really comfortable with the way things are,” Witte said. Managers need to be watchful of signals that employees aren’t handling the changes well as productivity can suffer, experts say. It’s important for business owners and managers to Jayne Witte have a good plan when implementing any change because the more prepared you are, the more

MARCH 2009 ■ EdgeBusiness

confidence you exhibit, which can help ease people’s fears. “You do not want to feel like an organization is shooting from the hip,” Long said. And remember, managers may have been dealing with these changes for some time, so it’s easy for them to assume that everyone else knows about them, she said. Therefore, experts stress the importance of communication when making any changes in an organization. “Communicate, communicate, communicate with your employees. You can never over communicate in a time of change,” Long said. Long recommends managers communicate changes in as many ways as possible — in meetings, on posters, etc. — explaining what the change means to employees. So often people are so surprised or upset by the changes that they do not hear everything, so you have to tell them many times. The next time they will hear a little more, Long said. Experts recommend giving employees an opportunity to ask questions about the change. “People need a good reason to change. They are not going to change because you say so,” Witte said. “You need to explain the reasons why change is necessary. Let people ask questions and share their concerns.” Apache Hose & Belting Inc. in Cedar Rapids took that advice to heart when it underwent some major leadership Helena Long changes over the last six years that have transformed the company. Not only did new leadership put a sales and operations plan and a strategic plan in place, it adopted a Lean and safety program, said President and CEO Tom Pientok, who came on board in October 2007. The more structured business approach has helped the company’s bottom line and keep it competitive, but not everyone jumped on board the new way of doing business. “The first thing you’ve got to do is get the right people on the bus. If you don’t have the right people on the bus, they’ve got to get off,” Pientok said. He said Apache Hose & Belting lost

people directly and indirectly because of the changes. But to get employees on board with the changes, the company worked on improving its communication at all levels. It also worked to get everyone involved in making the changes to get buy-in, he said. “We believe Apache is doing a good job at communication. When people are doing a really good job and not so good, we share it. I think people appreciate knowing that there aren’t any secrets,” Pientok said. When Brian Carr, president of Henry Russell Bruce, sought to change the culture at the Cedar Rapids-based marketing company, he knew it wouldn’t be easy, but he believed everyone would benefit. His inspiration? The Pike Place Fish Market in Seattle, which is famous for its employees throwing fish. The “fish philosophy,” as it became known, was relatively simple: Choose your attitude; make work like play; make someone’s day; and practice being in the moment. Carr, who became known around the office as “the big fish monger,” said one of the most difficult tenants for him was to be in the moment because he was always multitasking, so giving someone or something his undivided attention was difficult. But trying to stay so positive was not easy for many people. “It’s just not human nature to be like that,” he said. The goal was to make sure to leave a positive impression with customers and to make HRB a fun place to work to help retain and attract employees. “That was a dramatic change at HRB. We never gave it that much emphasis before,” Carr said. But he said the change proved invaluable when the flood hit last year. He said employees remained optimistic even while working in temporary, cramped quarters. “If we hadn’t had this ingrained in us, I don’t know how well we would have reacted,” he said. Even if the changes turn out to be positive for a company, employees will almost always be skeptical, so be prepared, experts say. “As human beings we crave a certain amount of stability,” Witte said.

Brian Carr, president of Henry Russell Bruce in Cedar Rapids, stands in the HRB office space at 200 Fifth Ave. SE, that is undergoing renovations following the flood last sum-

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EdgeBusiness n March 2009

What is coworking, anyway?

s more businesses embrace the idea of allowing their employees to work remotely and independent contractors, small-business owners, entrepreneurs, freelancers and those between jobs take over coffee shops, better options are needed.

Theresa Bornbach

Human factor

Meet coworking — the here-to-stay trend for today’s workplace. At last, a no-strings-attached office space that comes with the resources and technology needed to successfully conduct business. A coworking environment offers an affordable alternative to the expensive traditional office, lonely home office or crowded and unprofessional coffee shop setting. It’s no surprise that the coworking concept

m o c . y t l a e r h b w w w. c

began in larger cities, where commuting time and costs forced the “work at home” movement to the forefront. Over time, the attraction for working in isolation, with interpersonal contact primarily by telephone and the dress code of sweat pants and a T-shirt has waned. We have recognized that the vast majority of us are social creatures that crave a balance of privacy and community. Once a novelty for young, technology-oriented or creative types, coworking has spread across the country to solve many workplace dilemmas. Coworking starts with a place — a professional setting where you can bring your laptop and work every day or part of a day or week. Along with space comes choices — do you simply want a cafe environment, where other like-minded business professionals abound, and some quiet space if and when you need it? Or your own reserved cubicle with locking space where you can leave files and other items? Options for a private office, complete with desk, office chair and guest space are also

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MARCH 2009 ■ EdgeBusiness

available. Conference rooms and huddle spaces for private phone or personal conversations are an important added benefit; some include video conferencing capabilities. A reading and lounge area, complete with business publications, daily newspapers, etc., offers a comfortable place to take a break from projects. But coworking goes far beyond a physical space. It is a different experience than renting an office room. Part of any workplace is an appropriate technology infrastructure. Coworking environments have offered everything from basic tethered and wireless Internet options to more advanced options for e-mail integration with your Blackberry/iPhone/PDA, backup of your laptop data and off-site redundancy for business continuity. Access to a high-powered customer relationship management database can be a great benefit, providing a resource you might not be able to fund or manage as an individual business. Printing, scanning, faxing and copying are available (and many times included in the price) on the premises. You don’t have to bother with purchasing basic office supplies like paper and coffee. And we can’t forget the people. In addition to being appropriate for customer meetings, a comprehensive coworking environment has a receptionist to receive guests, field phone calls, handle incoming or outgoing faxes and

maintain an orderly, professional environment. Beyond the front door, the colleagues in your workplace are invaluable. Having professional business owners work together and interact in a multiuse facility, creates a business community. And in a time when we rely so heavily on technology for establishing and maintaining business relationships, the interaction with colleagues freshens your perspective. Here again, choice is the buzzword, with an environment that supports interaction or privacy. Certain coworking venues include basic administrative functions: data entry for your expense receipts, balancing bank and credit card statements and ordering office supplies. Some do basic invoicing as well. Others provide additional services such as concierge, gift-wrapping and hand-addressed business correspondence. Advanced services, such as graphic arts, copywriting, presentation preparation, etc., are frequently available, usually with a fee. Weekly or monthly business discussion groups, focused on actionable and relevant business topics, may be offered to bring added value to the coworking experience. Because your colleagues are involved in a broad range of businesses, you learn from their diverse backgrounds and business practices. Many locations offer community business leaders as speakers and networking events for members.

All the while, you choose when you want a quiet reprieve, social interaction or a lively business debate. One often overlooked group is that of displaced employees in transition. The typical outplacement options pool together displaced individuals. That arrangement provides an excellent source of support and career advice. A coworking facility can take it to the next step, immersing them in an environment with business colleagues, where discussions help stimulate thinking. Once again, coworking means sharing a fresh perspective, as well as a place for work. So, check it out. Coworking is available here in the Corridor, and it offers a cost-effective, customer-friendly alternative.

Theresa Bornbach is CEO of the Corridor Institute and founder and CEO of Corridor CoWorks, a facility that opened last month in downtown Cedar Rapids. She can be reached at (319) 899-3434 or theresa@thecorridorinstitute.org

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EdgeBusiness ■ MARCH 2009

Going

Global Global Understanding cultural differences is crucial in today’s global economy

By Janet Rorholm

hen it comes to doing business overseas, what you don’t know can hurt you.

Mark Kujawa, vice president of international business development at Diamond V Mills in Cedar Rapids, said understanding cultural differences is a reality of doing business in today’s global economy. “First you need to understand that (differences) exist,” Kujawa said. “You’d be surprised at how many people don’t get that.” For example, in Thailand, pointing at someone is considered rude. And in countries like China and the Middle East, relationships are crucial, Kujawa said. “In the West we tend to trust quickly. We assume that a person is trustworthy until proven

different. In China, it is assumed you are not trustworthy,” he said. “It takes a long time to prove that first impression wrong. It takes years sometimes and, as anywhere, people do business with people they trust.” That’s why it can take anywhere from three to eight years to develop those relationships and gain a company foothold in some of these countries, he said. Over the last 40 years, Diamond V Mills, an animal nutrition company, has done business in nearly 40 countries, including Egypt and Thailand. Kujawa regularly travels to China, Southeast Asia and Bangkok. “It’s a very fast-growing part of our business. Diamond V Mills has been committed to international business for a long time and we are seeing continued growth as a result,” Kujawa said. Nearly 20 percent of the company’s revenue comes from its international business and that figure continues to grow every year, Kujawa

said. Kujawa said the company tries to hire people who are sensitive to other cultures. Knowing a second language also is a plus. “People who know a second language are often more sensitive to these differences,” he said. At ESP International in Cedar Rapids, employees use their diverse work force to learn about important cultural differences. But they also rely on advisers to help them navigate the differences in specific countries. “You really need someone who has done it before or who has lived there before that can help you with the differences. They can tell you what to watch out for and how to conduct business,” said Jeff Hamilton, president and CEO at ESP. Hamilton said in some countries, people won’t tell you “no” and will say “yes” without hesitation. That “save face” mentality can be costly because a business may tell you it can do something and not have the knowledge or

MARCH 2009 ■ EdgeBusiness

capacity and you find that out too late. “We’ve developed some procedures and detailed auditing as a result,” he said. Other cultural differences require work arounds. China’s New Year is so important that business often grinds to halt. “For about three weeks everything’s out of commission,” said Brien Whitford, president of ESP China. “It’s like our Christmas times 10,” he said. “So many employees work away from their homeland and that’s the one time of the year they go home and so they use their vacation time then, too. It really shuts things down. For a small driven company, that’s tough,” he said. “But it’s important to allow that vacation. That’s very specific of their culture.” Deborah Rinner, director of international protocol and corporate etiquette at Tero International Inc., in Des Moines, said cultural understanding and sensitivity can determine how successful a business is internationally. It also helps in dealing with an international work force, she said. Rinner teaches business culture classes at Tero that address five main tenets that business people should know. “We have to found there is a need to under-

stand not just what to do, but why you have to do it. That can help with other interactions,” she said. The five main tenets focus on cultural differences in following areas: Time How we view time differs and determines how it is used and oftentimes seen as misused cross-culturally or by generation. So if you set up a meeting for 9 a.m. and no one shows up, you can often make value judgments, based on that. In certain societies, times are not set in stone. Communication Styles The cultural differences in communication influence what gets said and whether things are spoken Jeff Hamilton in a way that promotes common understanding or creates conflict. Task vs. Relationship Task vs. relationship is a cultural driver that influences what and how things get done, and how effectively people complete work or work together. Equal Power vs. Hierarchy How power is perceived and addressed

varies around the globe and by age groups. Whether power is viewed as shared by all or given to a designated few determines how people operate. Individual vs. Group Orientation Whether we see the world through an individualistic lens or a group orientation affects how we are motivated and what responsibilities we will take. For example, when it comes to communication in the United States, people tend “to tell it like it is,” but elsewhere that directness is offensive, Rinner said. In some cultures, it is more about saving face. So if someone doesn’t want to do business with you they’ll tell you, “We’ll think about it,” or “We’ll consider it,” when they actually mean no. She said, often the key there is to pull a person aside, away from a group and ask them what they really mean. There’s always been a need for this understanding, but sometimes people don’t seek out that knowledge until something adverse has happened and they realized it really could have helped them, Rinner said. A misunderstood gesture, an ill-placed phrase, or uninformed judgment is all that is needed to lose big business internationally, she said.

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EdgeBusiness ■ MARCH 2009

Managing state, local taxes in uncertain times

COMPLIANCE IS AN UNAVOIDABLE CHALLENGE

Todd Hendricks

HUMAN FACTOR

n today’s uncertain economy, it is critical for businesses to save money and reduce expenses wherever possible in order to remain competitive. Many companies have been forced to make difﬁcult decisions pertaining to the structure of their businesses, including the elimination of jobs and product or service lines. The necessity to conserve liquidity and the difficult credit market are making strategies that require investment, such as developing new product or service offerings, or strategic mergers and acquisitions, more difficult. In this environment, a thorough review of a company’s overall state and local tax, or SALT, situation is an opportunity too many companies are failing to pursue. By exploring all available tax credits, refunds and incentives and examining nexus exposure for opportunities to concentrate tax obligations in low-tax jurisdictions, companies can save significant money without additional investments. SALT planning opportunities often are overlooked because many treat these taxes as a necessary cost of doing business. Yet SALT costs can and should be managed just like any other business expense. Some companies neglect to invest in SALT planning because they believe

Compliance is one aspect of a company’s SALT picture that it cannot ignore — and compliance becomes more challenging in a tight economy. State and local taxing jurisdictions are seeing tax revenues contract. Therefore, they are being more aggressive in pursuing tax revenue. Audit activity is increasing at every level. Companies that do not have their compliance processes and documentation in good order could face unnecessary additional tax expense. Taxing jurisdictions also are increasing efforts to identify non-filers, so companies must be sure that they have identified all jurisdictions in which they have a taxable presence and file the appropriate returns. If your company is claiming a credit or incentive based on certain financial, operational or employment metrics, this is a good time to check that you are in compliance. It is also important to document these credits and incentives, as taxing jurisdictions will be stepping up audit review activities in these areas as well. Some jurisdictions are eliminating various credits and incentives in order to boost tax revenue. As a result, this may be your last year to capitalize on such opportunities in many jurisdictions, so move quickly to identify such options. SALT FOOTPRINT ANALYSIS

From compliance and planning perspectives, the first step to an effective SALT strategy is to understand your SALT position. For companies with operations in multiple states and localities, a SALT footprint analysis is the right place to start. A footprint analysis helps to detail where a business has property, payroll and sales, all factors that may create a taxable presence in a state. This allows a company to identify areas of concern, and possibly areas to consolidate in order to reduce liability. The goal is to accurately show where a company is filing and whether it is properly filing and focusing on its effective state tax rate. After developing the footprint, companies then can benchmark their overall SALT performance against key competitors to assess their

competitive position. A footprint analysis also can show missed opportunities that could still be captured. A company can look back at past credits, exemptions or other decreased liability opportunities they could have received, and,

“

State and local taxes are a significant cost of doing business, but they can be managed like any other expense.

“

the effort does not justify the eventual savings. But in today’s environment, where every bit of revenue is critical and there is tremendous pressure on a company’s bottom line, any opportunity to uncover additional revenue should be explored.

– Todd Hendricks, RSM McGladrey, Cedar Rapids

in certain situations, retroactively claim such benefits. The sooner companies do this, the better, as these opportunities do expire. Past incentives are not available to be claimed if they are non-statutory, but looking back can help the company plan for future opportunities. Companies also should look at possible structural changes that could reduce SALT liabilities going forward. Many companies find opportunities to consolidate operations in lower tax jurisdictions, which can substantially reduce SALT liabilities. State and local taxes are a significant cost of doing business, but they can be managed like any other expense. There are considerable opportunities available for companies to successfully reduce their tax burden. Companies spend a great deal of time and effort looking at ways to reduce costs and increase revenue. With sales and profits seemingly shrinking on a daily basis, a reduction in state and local tax liability is an opportunity that should not be ignored. Move as quickly as possible as the amount of benefits and credits available to companies is likely to decrease in the near future. With tax revenues dwindling at all levels, officials are not as quick to distribute incentives as they have been over the last decade. If company executives are proactive, credits and benefits that are being considered for reductions or cancellations may be grandfathered in. This is a tenuous time for the economic well-being of businesses as well as state and local governments. While states and localities want to continue being generous with credits and incentives to encourage economic development, the window may be closing on some credits because of the substantial loss of tax revenue. Todd Hendricks is a state and local tax director at RSM McGladrey in Cedar Rapids. He can be reached at (319) 298-5333.

MARCH 2009 ■ EdgeBusiness

CORRIDOR NEWS CEDAR RAPIDS: Rockwell does layoffs, freezes raises — Rockwell Collins, the Cedar Rapids-based maker of aviation electronics, in early February announced layoffs along with its first-quarter earnings, which were flat. The layoffs are 3 percent of Rockwell Collins overall work force, which is the equivalent of 500 regular employees and 100 contract employees. Of those, about 200 of the regular employees and an undisclosed number of contract employees affected are located in Iowa. CEDAR RAPIDS: Labor council replaces longtime president — Jerry Nowadzky of Monticello was elected president of the Hawkeye Labor Council in January. Nowadzky is a member of Machinists Local 831, which represents workers at Schneider Electric/Square D. He replaces longtime President Justin Shields. CEDAR RAPIDS: Local-option sales tax put on ballot — Cedar Rapids voters will go to the polls March 3 to vote on a proposed 1 percent local-option sales tax as a way to raise money for flood recovery. Other jurisdictions in

Linn County also have lined up to vote on the measure. The tax would generate $18 million or more a year for a little more than five years for Cedar Rapids and as much as $29 million a year countywide for all jurisdictions. CEDAR RAPIDS: Survey finds many flooded businesses MIA — A startling 47 percent of Cedar Rapids small businesses affected by last summer’s flood are “missing in action,” according to a new survey released in mid-January. The inability of a survey team to find many of the 650 small businesses despite diligent efforts was a disturbing finding in the “Flood-Affected Small Business Survey” conducted for the Cedar Rapids Area Chamber of Commerce Small Business Task Force. They found that 266 had reopened, 17 had gone out of business and a startling 307 could not be found. The effort placed in question earlier indications from surveys that only 15 percent or 20 percent of the businesses flooded last June had gone out of business. CEDAR RAPIDS: Layoffs planned by 3 Corridor manufacturers — Three area manufacturers have announced layoffs totaling 131 employees in mid-January. Terex/Cedarapids laid off 58 at its plant in Cedar Rapids, while Whirlpool announced plans to lay off 54 next week at its Middle Amana operation. Layoffs at Midland Forge were expected to affect 19

MorningEdge The

workers. IOWA CITY: TMone expands to Des Moines — TMone, an Iowa City-based business process outsourcing company, announced plans in January to open its second customer contact center in Des Moines. The 150-seat center will be at 200 Army Post Road in south Des Moines. It will employ 100 in 2009 and 200 in 2010. CEDAR RAPIDS: Struggling Pier 1 to close store — Pier 1 Imports closed its 15-year-old store at 2445 Wiley Blvd. SW as the importer of home decor, gifts and furniture struggles with financial losses. CEDAR RAPIDS: Clipper Turbine cuts 90 workers — Clipper Turbine Works in Cedar Rapids laid off 90 of its 830 global employees in mid-January with a large portion of those employees cut from the company’s sole North American production facility on Bowling Street SW. The California-based company employed nearly 390 people at the plant, where it manufactures the 2.5-megawatt Liberty wind turbine. CEDAR RAPIDS: Kerndt Brothers bank enters market— Family Merchants Bank of 600 Boyson Road NE became the fifth branch of Kerndt Brothers Savings Bank of Lansing on Jan. 1, nine months after Kerndt Bank Services, the bank’s holding company, acquired the holding company of Family Merchants.

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EdgeBusiness ■ MARCH 2009

Marketing with video destined to capitalize on culture, provide diversity Though television continues to decline in influence and affordability, it is still a preferred medium to demonstrate a product and support a brand. Few will dispute that the combination of audio and video are the most powerful way ever discovered for quickly communicating and connecting marketing ideas with consumer emotions.

MARKETING ON THE EDGE

“

here might marketing ﬁt in an issue devoted to culture and diversity? Rather than address obvious market segmentation and market expansion opportunities, it would seem appropriate to address the ongoing marketing challenge of making your marketing messages relevant at an individual level. That requires moving from one-to-many messaging to the elusive promise of one-to-one marketing, which is proving much easier to embrace than to implement.

Online video is now predicted as the next big thing in marketing. Posting video on marketing Web sites has proved to have a positive impact on sales, lead generation, site traffic and customer relationships.

“

Dick Damrow

— Dick Damrow, Contract Marketing Resources

Long before television, Ben Franklin helped us understand its intrinsic appeal by saying, “Tell me and I will forget. Show me and I might remember. Involve me and I will understand.” Television came as close to involvement as any medium ... until the emergence of a new set of platforms and an evolving understanding of old ones. Online video is now predicted as the next big thing in marketing. Posting video on marketing Web sites has proved to have a positive impact on sales, lead generation, site traffic and customer relationships. That is because video does a better job of moving qualitative branding metrics like awareness and consideration than non-video advertising. Today, everyone is a media company. I am, you are, we all are. Publishers are marketers and marketers are publishers. The question is less about whether to use video and more about how to use it in ways that differentiate you from your competitors. This gets us back to the topic of culture and diversity. Our culture has been influenced by television for more than 50 years. We test video positive. Video production in today’s digital, multichannel environment allows marketers to benefit from the positives of television advertising — without the waste. Contrary to mass-media perception of television, tightly targeted video content available to Web site visitors is a quick and easy way to

provide lots of information and, more importantly, to build trust. Unless it is totally product focused, video allows you to humanize your company and to project a positive personality. As for diversity, Web sites with heterogeneous audiences are a harder sell to potential advertisers than targeted niche sites. If you try to serve too many diverse audiences with your Web site, you will lose contextual relevance ... and reduce response. By video marketing, we are not talking about the high-risk, high-reward gamble of viral video like you see on YouTube, MySpace, Hulu and Veoh. We are talking about simply stepping up to the challenge of making online video an easily accessible part of your marketing mix. The next wave of video marketing is destined to be distributed across the four screens of film, television, the Internet and mobile. The ultimate one-to-one marketing experience will be live-video conferencing — not just to reduce the cost and stress of business travel, but to build relationships and trust through collaboration — right from your desk. New desktop video conferencing applications will overcome the limitations of the free Web chat (where the lips and voice are seldom in sync) and provide an affordable alternative to the major telepresence corporate installations that often run well into six figures. Expect commercial-strength applications that allow you to collaborate, build relationships, increase customer service and retention for less than $50 a month, without the cost, hassle and inefficiency of traditional travel. Those with an integrated vision of sales and marketing will quickly recognize that real-time, live-video conferencing overcomes the marketing and communications barriers of phone (voice only), e-mail (text only), desktop sharing Web meeting applications like WebEx, GoToMeeting and Microsoft Live (impersonal PowerPoint with audio), and the escalating cost of personal sales and customer service calls. Not only will they come to view the technology as a better way to build relationships, reduce travel costs and simply get more done in less time, they will finally find an affordable answer to the elusive promise of one-to-one marketing in the form of one-person-to-oneperson marketing. Dick Damrow is founder of Contract Marketing Resources. He can be reached at (319) 294-8333.

MARCH 2009 ■ EdgeBusiness

Lamart Clay

Gerald Mohwinkle

Ralph Wasik

Milt Aunan

Pat Airy

Tammi Erb

Pope Yamada

NEWSMAKERS

Lynne DeVore

Beth Houlahan

Appointments and promotions in businesses around the Corridor Lamart Clay was named director of sales for U.S. Cellular in Iowa, where he will lead all sales activities. Clay most recently served as director of U.S. Cellular sales for Indiana. ■

Gerald Mohwinkle was promoted to president of Rapids Reproductions Inc. Mohwinkle will oversee the company’s operations in Cedar Rapids, Cedar Falls, Davenport and Urbandale. He started with Rapids Reproductions in 1988 as sales manager and later was promoted to vice president. Ralph Wasik will assume the position of chairman for Rapids Reproductions and Rapids Properties.

■

Milt Aunan has been named vice president and chief ﬁnancial ofﬁcer at St. Luke’s Hospital in Cedar Rapids. Previously Aunan worked at Wadley Health System in Texarkana, Texas, where he served in the same capacity.

■

■ Three local business leaders have joined the board of directors of the Iowa City Area Chamber of Commerce. They are Larry Meyers, (not pictured) Johnson County Board of Supervisors; Kate Minette, (not pictured) Pearson; and Craig Willis, (not pictured) Security Abstract Corp. ■ Goodwill of the Heartland has announced two recent promotions. Pat Airy was promoted to senior vice president for Contract Services, Human Resources and Rehabilitation Services in the North Region. Airy joined Goodwill as a job development specialist. Tammi Erb was promoted to senior vice president, chief ﬁnancial ofﬁcer. Erb has been with Goodwill for 23 years, having started as controller after working in public accounting.

Doug Banowetz (not pictured) was admitted as partner at Honkamp Krueger & Co. Banowetz has been with the ﬁrm since 1994 and is located at the Hiawatha ofﬁce.

■

Millhiser Smith Agency Inc. in Cedar Rapids recently appointed Lynne DeVore chief operating ofﬁcer. Devore was previously director of ﬁnance, human resources and administration. ■

Beth Houlahan was promoted to senior vice president of patient care services at Mercy Medical Center in Cedar Rapids. Houlahan was previously vice president of Nursing Excellence.

■

Ethical “I love working for a firm that’s respected and trusted by its clients. Here, we appreciate the trust our clients have in us to deliver confidential, ethical and effective services that grow their companies. It’s Honkamp Krueger’s job to deliver effective financial solutions for our clients, and it’s a responsibility we take seriously.” Doug Banowetz, CPA General Services Manager Hiawatha, Iowa

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EdgeBusiness ■ MARCH 2009

Culture Club Businesses reach out to GLBT employees, customers

By Janet Rorholm

ow do you deﬁne diversity? That’s a topic many diversity experts in the Corridor hope to tackle given that preliminary reports from a new diversity study show residents in the Corridor have a limited view of diversity.

Partners John Schafer and Brian Smith of Cedar Rapids are strong proponents of diversity and inclusion. Mark Tade photo/EdgeBusiness

“When people think about inclusion and diversity people think of race immediately. Then they may think of gender, but there really are eight dimensions of diversity,” said Hazel Pegues, executive director of Diversity Focus in Cedar Rapids. Those eight dimensions are race, culture, ethnicity, age, religion, social economic status, disabilities and sexual orientation or lifestyle. Karen Brown, director of Diversity Partnership at Rockwell Collins in Cedar Rapids, agrees that Hazel Pegues the Corridor has to better define diversity to residents. “I think the community as a whole has

MARCH 2009 ■ EdgeBusiness

Smith said. One reason many businesses are further ahead of the curve than society is that they

“

I think the community as a whole has made some baby steps in how a great number of people understand diversity and inclusion. I think we have raised the bar in what diversity is through Diversity Focus. It’s a strong and highly respectable brand and its image has given this area a lot of recognition.

“

made some baby steps in how a great number of people understand diversity and inclusion,” Brown said. “I think we have raised the bar in what diversity is through Diversity Focus. It’s a strong and highly respectable brand and its image has given this area a lot of recognition.” Pegues said the recent survey shows most people don’t think about gays and lesbians, bisexual and transgender groups, and people with disabilities were barely acknowledged. “Given that we are fighting two wars, more people are going to return home disabled,” Brown said. “Our question as an employer is how can we tap into that for talent.” Call it a matter of survival or an enlightened viewpoint, but while government continues to bicker about what rights gay and lesbian people should have, businesses and other organizations are taking the lead on these diversity and inclusivity issues. Organizations and businesses are beginning to understand there are other aspects of diversity than Karen Brown just race, ethnicity, gender and age, Brown said. Because so much discussion about diversity is about race, ethnicity and cultures, Brian Smith of Cedar Rapids, who is gay, was encouraged by his employer’s inclusion for gay, lesbian and bisexual and transgender employees (GLBT). “As a gay person it’s extremely important,” said Smith, who is manager of performance and development for GE Commercial Finance and chairman of the Cedar Rapids company’s diversity group, Inclusiversity. “One of the things we value is inclusiveness and GE stresses being inclusive,” he said. Every other month the group holds a book club where members read books from different cultures and then get together to talk about them. It also supports cultural diversity week which highlights difference cultures, like India where the company has employees and the Czeck and Slovak Republics to honor part of Cedar Rapids’ heritage, Smith said. Recently Smith and other members of GE’s Inclusiversity group went to GE’s annual affinity group conference that brings together employees of these different groups. Smith, who attended the GLBT event, called it a great experience. “We felt very empowered and engaged. We felt the company valued our diversity. It didn’t see it as a negative,” he said. GE’s openness has helped create dialogues. It also has offered same-sex partners benefits for about five years. “It’s all about looking at it from a business perspective. Can this person do the job? Yes. Does it matter if they are — whatever? No,”

— Karen Brown, director of Diversity Partnership at Rockwell Collins

need quality employees and welcoming, accepting and supporting these diverse groups can help attract the talent they need. But it also makes good business sense. “I think a lot of businesses see the buying power of the GLBT,” Smith said. “A lot of us don’t have children and so we spend a lot of money on our dogs or going out.” So whether its offering networking groups or sponsoring GLBT events, that support doesn’t go unnoticed. Support of GLBT issues is growing among businesses nationwide. The Human Rights CamCarlton paign Foundation’s State Blackburn of the Workplace report shows rapid expansion of protections for GLBT workers in the private sector in the past decade. About 35 percent, or 175, of the nation’s Fortune 500 businesses have gender identity protections, including 60 of the top 100 Fortune-ranked businesses. In 2000, just three of the Fortune 500 businesses had such protections. And 85 percent of the Fortune 500 businesses have protections based on sexual orientation, compared to 51 percent in 2000. “This report shows that the country’s largest and most competitive employers are most likely to have added protections based on gender identity and sexual orientation, setting consistent expectations of equal opportunity for their employees and job applicants regardless of where they work in the United States,” said Joe Solmonese, president of Human Rights Campaign Foundation.

Employers also have improved benefits to ensure fair treatment of GLBT employees and their families. Today, 57 percent, or 286, of the Fortune 500 companies offer domestic partner benefits. Removing discriminatory exclusions for medically necessary, transgender-specific treatment is a rapidly-emerging trend. Eighteen of the Fortune 100 provide transgender-inclusive health insurance, compared with one in 2001. In Iowa City, the more liberal end of the Corridor, support for GLBT community is much more prominent. Businesses have openly supported and catered to the GLBT community, throwing support to the four-year magazine Outlook, which caters to those who are gay and lesbian. Carlton Blackburn, founder of Connections, a networking group for GLBT and the Outlook resource guide, said selling ads for the magazine has been “real easy.” “Most of our sponsors of Outlook magazine are straight,” he said. Iowa City has a high percentage of gays and lesbians and businesses recognize it’s a good angle to support these people, Blackburn said. He estimates that 10 percent to 15 percent of Iowa City residents are gay or lesbian. Blackburn created Connections as a welcome magazine for new residents, many of whom are associated with the University of Iowa. Articles and features make up half of the magazine and the other half is a business guide. Gay and lesbian people wanted to know who could they go to, whether it be a physician or therapist. “It’s important to find people who are open to your life,” Blackburn said.

Eight Dimensions of Diversity

Race Culture

Ethnicity

Age Religion Social economic status

Disabilities Sexual orientation or lifestyle

EdgeBusiness ■ MARCH 2009

The ﬁght over same-sex marriage in Iowa

Patricia Kropf

LEGAL ANGLE

he deﬁnition of terms like marriage and spouse, under Iowa law, may be changing in the near future. On Dec. 9, the Iowa Supreme Court heard oral arguments in the case of Varnum, et al. v. Brien. The case, which was ﬁled three years ago by Lambda Legal on behalf of six samesex couples and their children, alleges that Iowa’s marriage statute, which provides “only a marriage between a male and a female is valid,” is unconstitutional.

In August 2007, the Iowa District Court for Polk County found for the plaintiffs and ruled that Iowa’s marriage statute violates the constitutional rights of gay and lesbian individuals to equal protection and due process. The District Court’s ruling declared that same-sex couples cannot be excluded from marriage under Iowa’s marriage statute based on the fact that both individuals are of the same sex if they otherwise qualify and properly apply for a marriage license. Following the District Court’s ruling, the defendant filed an appeal and the District Court granted a stay of its order. The stay prevents same-sex couples from marrying until the Iowa Supreme Court determines whether Iowa’s marriage statute is, in fact, unconstitutional. Since the Varnum case involves only issues of state law, the Iowa Supreme Court will be the final court to hear the case. As the residents of Iowa, and other individuals across the nation, await the Iowa Supreme Court’s ruling in the Varnum case, many

MARCH 2009 ■ EdgeBusiness

wonder what legal rights same-sex couples will gain if they are granted the right to marry. The

“

The District Court’s ruling declared that samesex couples cannot be excluded from marriage under Iowa’s marriage statute based on the fact that both individuals are of the same sex if they otherwise qualify and properly apply for a marriage license.

“

– Patricia Kropf, an attorney at Meardon, Sueppel & Downer PLC

District Court and the plaintiffs in the Varnum case articulated numerous legal rights and benefits that are afforded to married couples that are not available to unmarried couples. Presumably, all these legal rights and benefits will become available to same-sex couples in Iowa if they are granted the right to marry. These rights include: 1. The right to file a joint tax return, which

often reduces the tax liability for the married couple as a whole. 2. The automatic right to make important decisions relating to health care for a spouse when the spouse is unable to do so. 3. The right to file a lawsuit for wrongful death when a spouse is killed. 4. The right to receive workers’ compensation death benefits when a spouse is killed in an accident while at work. 5. The automatic right to make decisions regarding the disposition of a spouse’s remains when the spouse dies. 6. The right to have a child that is born during the marriage presumed to be the child of both spouses, even if conceived through donor insemination, allowing the non-biological parent to avoid the necessity and expense of adoption, in most cases. 7. The right to inherit at least a portion of the estate of a deceased spouse if the deceased spouse does not have a will. 8. The right to inherit at least a third of a deceased spouse’s estate, even if there is a will that leaves the surviving spouse less than a third of the estate. 9. The right to remain in the marital home after a spouse dies until the estate of the deceased spouse is settled. With all these rights and more involved, the

•

decision whether to grant same-sex couples the right to marry is not one that the Iowa Supreme Court is likely to take lightly. Furthermore, the fight for same-sex marriage is not one that proponents of same-sex marriage are likely to give up easily. In the event that the Iowa Supreme Court rules that same-sex couples do not have the right to marry under Iowa law, proponents of same-sex marriage may choose to focus more of their efforts on procuring a change of law from the Iowa Legislature. At this point, only time will tell. Patricia Kropf is an attorney at Meardon, Sueppel & Downer PLC. She can be reached at trishk@ meardonlaw.com

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EdgeBusiness ■ MARCH 2009

Value Added Corridor makes progress in promoting diversity

By Janet Rorholm

alling the Corridor’s lack of diversity an economic disadvantage, several employers in the area — concerned with their ability to attract and retain minority employees — joined forces to start the non-proﬁt Diversity Focus. The organization, funded with a donation of several million dollars, is intended to be a clearinghouse for programs aimed at enriching and promoting diversity. Among those leading the charge has been Rockwell Collins, the largest nonpublic employer in the Corridor. That was four years ago. Has that focus on diversity made a difference in the Corridor? Karen Brown, director of Diversity Partnership at Rockwell Collins in Cedar Rapids, thinks it has.

“I think the Corridor has made a lot of strides when it comes to diversity,” Brown said. “When I think of the corporate profit and notfor-profit organizations that created Diversity Focus, that to me is an indication of progress. They see a business need to advance this issue. “I do, however, think we have a long way to go to being more welcoming, but that is to be expected. When you go on a journey like this, you don’t get there overnight.” Patience, Brown said, is key. “That’s the hardest part of change. We as a community need to be very patient ... to allow the process to work,” she said. Hazel Pegues, executive director of Diversity Focus, applauded the Corridor for creating this unique organization. “There is no other organization — no freestanding organization — formed to promote diversity like it elsewhere,” she said. It was that uniqueness that impressed and eventually drew Pegues to the Corridor. Pegues joined Diversity Focus last summer as the floods hit. She replaced the organization’s original executive director Alfred Ramirez, who left in late 2007 to become principal consultant for Diversity Initiatives at ACT.

Diversity Focus was recently recognized by the State of Iowa, receiving the One Iowa Award in December for its work promoting diversity and improving the lives of minorities in Eastern Iowa. Lt. Gov. Patty Judge created the award to recognize groups and individuals “who have worked for greater inclusion and acceptance of all Iowans.” “There’s an incredible opportunity for this entire community to be an example of how to do diversity, how to do inclusion and how to change a community,” Pegues said. “Most of the work is in education. Most people need to know what to do and how to do it and then they take it from there.” Some of the things that Diversity Focus has started include a Spanish Conversation Circle, informal gatherings for people to talk in Spanish and network, and a Brown Bag Lecture Series, lunchtime forums led by community speakers on a variety of diversity topics. Diversity Focus also has offered several workshops where people have come together to watch the Oscar-winning movie “Crash” and discuss the prejudices highlighted in the movie. It also created an ambassador program that matches new employees with community mem-

MARCH 2009 ■ EdgeBusiness

Businesses and Diversity Focus seek to highlight the various diversity events in the Corridor. Left: Dancers Tiffany Dueker (left) and Lovar Davis Kidd with MOvMNT Dance Co. in Cedar Rapids rehearse for the Global Dance Fest 2008. Michael Barnes photo/EdgeBusiness Middle: Bud Belcher, adjunct professor at the University of San Francisco and a board advisor for the American Diversity Association, leads a leadership workshop during a 2007 Diversity Leadership Conference. Jim Slosiarek photo/EdgeBusiness Right: Mary Moscrip of Cedar Rapids at a Diversity Focus Spanish Conversation Circle last spring. Jeff Raasch photo/EdgeBusiness

bers who volunteer to help an individual and or family get acclimated and oriented to the area, access services and resources. Most recently it created FINDIT!, an online resource where new employees can find everything from local personal grooming providers to churches and lifestyle groups. Brown wishes more people would get involved in what Diversity Focus offers. “People just need to be engaged. A lot of people have gotten engaged and those who have been are seeing the value of that,” she

said. Brown said Rockwell will continue to make diversity a priority as a company and in the community, especially through Diversity Focus. “We’re still committed to its financial funding. We want it to succeed and we’ll always be there,” Brown said. Last fall Diversity Focus and Vernon Research Group joined forces to conduct a survey examining how people in the Corridor view diversity in order to figure out where Diversity

Focus needs to go next. “Now that we have people’s attention. We need to know where we are as a community and address the gaps we have,” Pegues said. Pegues, like Brown, still believes that the community has a long way to go toward making people who are different from them feel more welcome. “Some people do feel more welcome, but I think you chip away at that,” Pegues said. “I don’t think you change anything that ingrained in only three years.”

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EdgeBusiness ■ MARCH 2009

Some positive signs among the economic gloom

hey may be few and far between, but there have been some recent positive economic events amid Corridor layoffs and business slowdowns.

George C. Ford

ECONOMIC DEVELOPMENT

The June flood, which devastated portions of the business community at both ends of the Corridor, led to the birth of Cedar Crest Manufacturing. Doug Miskimen, formerly Norwood Souvenir’s general manager, and Dave Thalacker, former director of operations at Norwood, expect to begin supplying imprinted pens and pencils to the promotional products industry as early as late next month. The company will be leasing a 20,000-square-foot production facility at 200 50th Ave. SW and plans to employ about 20 people by the end of this year. Admittedly, Cedar Crest will not initially replace the 200 jobs lost when Norwood Souvenir decided not to reopen its flooded plant in northwest Cedar Rapids. But with an experienced management team, a pool of trained employees and solid contacts in the promotional products industry, Cedar Crest has a better-than-average chance of growing and thriving in future years. Another positive development was a decision by Jill Dahlstrom, owner of Yummy’s Gourmet Cakes in Fairfield, to keep a bakery operating in Coralville. Dahlstrom faced a tough decision after her original bakery on the Coralville Strip flooded in June. Although she did not lose equipment, the prospect of waiting for remodeling to be completed was a critical concern. In the end, Dahlstrom elected to move the bakery to a relatively new strip center just off Oakdale Boulevard in Coralville. Customers not only found Yummy’s new bakery, but pitched in to take product samples to potential business

clients in the area. Another positive for Yummy’s Gourmet Cakes was the willingness of Fareway to serve as a temporary location where Coralville and Iowa City brides could pick up their wedding cakes. Fareway’s driver agreed to work extended hours to handle Yummy’s deliveries as well as his regular deliveries. Just last month, two companies announced plans for a 192,000-square-foot contract packaging facility in Iowa City that will create about 100 new jobs in the Corridor. Alliance, a division of Norcross, Ga.-based RockTenn Co., and Quality Packaging Specialists International, based in Burlington, N.J., said employees of the new facility will inventory products, promotional packaging and retail display materials. They also will assemble, package and ship them to distribution centers and retailers. Alliance, which manages 15 similar distribution and fulfillment facilities, says the Iowa City operation will be a one-stop source for consumer packaging, display systems, contract packaging, order fulfillment and distribution services. And while consumer spending has slowed, Cedar Valley Habitat for Humanity’s ReStore in Hiawatha has experienced sales growth since July. While attributing some of the increase to those recovering from the June flood, Manager Julie Palmer Nelson says the recession also may have awakened Corridor residents to the idea that buying “new” is not necessary when you can purchase quality used items. More businesses also may realize tax advantages by donating unsold inventory to non-profit organizations like ReStore. Either way, it’s a best practice. George C. Ford is the ﬁnancial editor of The Gazette. He can be reached at (319) 398-8366 or george.ford@gazcomm.com

Nichole Szoboda, manager at Yummy’s Gourmet Cakes, decorates a birthday cake with trio dots in butter cream frosting at its old Coralville store. The store moved after the Floods of 2008 to a new strip mall off Oakdale Boulevard in Coralville. Laura Schmitt photo/EdgeBusiness

MARCH 2009 ■ EdgeBusiness

BOOK r • e • v • i • e •w

Best Seller Business Reads 1. “Outliers” by Malcolm Gladwell (Little, Brown) 2. “Hot, Flat, and Crowded” by Thomas L. Friedman (Farrar, Straus & Giroux) 3. “The Total Money Makeover” by Dave Ramsey (Thomas Nelson) 4. “The Ascent of Money” by Niall Ferguson (Penguin Press) 5. “The Return of Depression Economics and the Crisis of 2008” by Paul Krugman (Norton) 6. “The Great Depression Ahead” by Harry S. Dent Jr. (Free Press) 7. “The Snowball” by Alice Schroeder (Bantam) 8. “Strengths Based Leadership” by Tom Rath and Barry Conchie (Gallup) 9. “The Motley Fool Million Dollar Portfolio” by David and Tom Gardner (Collins Business) 10. “The 4-Hour Workweek” by Timothy Ferriss (Crown) Source: The New York Times best-seller hardcover business list based on January sales

“Strategy: Create and Implement the Best Strategy for Your Business” by Harvard Business Essentials Whether you’ve completed your strategic planning process for the year or are just getting started, the Harvard Business School has provided a brief, yet thorough, look at how to develop and implement the best strategy for your business. The book goes into great detail on multi-leveled SWOT Analysis. SWOT stands for strengths, weaknesses, opportunities and threats. This book does an excellent job of describing competitive analysis, market segmentation and price elasticity in a way almost any business owner can grasp. The authors take you from strategy to implementation, give guidance on formulation of action plans, discuss getting the right people on board and suggest methods for staying the course. There are useful charts, diagrams and interactive online tools available. This book is well worth the price for small business owners, non-profit leaders or corporate executives responsible for strategic planning. — Lisa Van Allen, owner of Van Allen & Associates.

“Road Rules” by Andrew J. Sherman Andrew Sherman gives readers 12 essential rules for navigating the road of life in his latest book “Road Rules.” He is the author of 17 business strategy books, so it was no surprise how well Sherman’s rules work for both personal and professional life. Using humor, song lyrics and profound quotations, Sherman teaches us how to “be the truck, not the squirrel.” In chapter one, Sherman quotes from the “Field Guide to Flattened Fauna” (aka roadkill), a study done by Roger Knutson of Decorah, to make his point that squirrels often do not see what was coming, react to threats with inertia, and lack the ability to escape their circumstances. On the other hand, truck drivers and leaders chart a clear path to their destination, stay focused for long periods of time, and understand that even the slightest mistake can cause significant harm. Truck drivers and leaders also take responsibility for important cargo, control the power of their vehicles and communicate effectively with others. The driving analogy works in “Road Rules,” and is a sure guide to both new and experienced “drivers.” Its simple message is inspirational and instructional. — Review by Lisa Van Allen, Van Allen & Associates

EdgeBusiness ■ MARCH 2009

This monthly feature shows how business experts have helped entrepreneurs address specific issues that face small businesses.

Business owner puts in rituals, gains efficiency By Janet Rorholm

oger Vorhies, president of Schaus-Vorhies Cos. in Fairﬁeld, said his business was doing well, but he knew it could be better so he turned to a business coach to help him. “I knew we lacked some structure in certain areas of the company,” Vorhies said. The company’s chief financial officer had given Vorhies a copy of the book “Mastering the Rockefeller Habits” by Verne Harnish, calling it “required reading,” Vorhies said. The book focuses on the foundational business strategies behind John D. Rockefeller’s success. Rockefeller founded Standard Oil Co. in 1870 and became a billionaire and philanthropist.

“The book really spoke to me,” Vorhies said. “It talks a lot about getting pulled into the business rather than stepping out of it and working on it. I wasn’t able to work on some larger, more important issues as a result.” So Vorhies sought the help of business coach Doug Wick, owner of Positioning Systems in Cedar Rapids, who is well versed in the Rockefeller habits, to help him put some of these strategies in place. “I couldn’t get my arms around the whole topic. I realized I needed some help,” Vorhies said. One of the habits that Schaus-Vorhies put in place was “rhythms,” daily, weekly, monthly or quarterly meetings that focus on specific goals. But adding more meetings was not what employees wanted to hear. “We saw a little bit of resistance and eye rolling, but I told them they’d see the benefits eventually,” Vorhies said. Vorhies said there are days when the meet-

ings are “bland,” but he’s convinced that the nine- to 15-minute meetings offer some good communication a couple of times a week. He said employees are asked to develop three goals each quarter and at the meetings they talk about how they are going and where they need help. “This leads to accountability with the group. You’re sort of embarrassed if you haven’t made any progress 10 days in a row,” Vorhies said. Wick said these rhythms or “huddles” help make sure everyone is on the same page. The Rockefeller habits are all about developing routines and rituals that help get things done. Some people don’t get things done unless they have these meetings because of the accountability associated with them, Wick said. Because the huddles are meant to focus on strategic goals, it also gives employees a purpose, he said. So many times managers take it for grant that employees know what’s expected of them, Wick said. That’s often because managers don’t just manage people. They often

Business partners Gus Schaus, left, and Roger Vorhies of Schaus-Vorhies Cos., in Fairfield stand in front of one of its projects, an office expansion project at Cambridge Investment Research Inc. in Fairfield. Mark Tade photo/EdgeBusiness

MARCH 2009 ■ EdgeBusiness

are doing tactical stuff themselves, so their attention is divided. Vorhies admitted that making sure employees had goals was a new concept that’s made everyone more productive. “If you have people working in your office that don’t have goals, that’s a problem,” Vorhies said. Vorhies also developed a one-page strategic plan for the business that defined the company’s core values and purpose. He said it wasn’t easy. “That’s where Doug really helps. He calls (the core values) a tool so ingrained in the company DNA that no one can talk you out of it,” he said. Wick said these core values are often what business owners are willing to sacrifice their business over. Establishing these values makes it easier to manage employees because it helps define what they should and shouldn’t be doing. “The essence of any great business ... is to have these core values that stay with the company,” Wick said. Vorhies said he and his business partner Gus Schaus had to look deep inside themselves to figure what their ideas were in starting the company and where they saw the company going in three to five years. The company’s core values now include safety first, honesty and integrity, respect for people, nurturing personal growth, reliability

and conservation. “Those core values won’t change if you’ve nailed them,” Vorhies said. The strategic plan, however, does change as goals are met. Vorhies said the company’s strategic plan has helped employees set their own goals. “You get a guideline and you shouldn’t have to ask anybody, ‘What should I be doing next,’ because these all guide you to a common goal,” Vorhies said. He said he and Schaus are working on creating their brand promise. Vorhies said the Rockefeller habits also have helped put metrics and dashboards in place that have made them much more efficient. Vorhies said the company established a bonus plan to reward employees meeting those goals as a result. “What we have found is that employees who are involved in the business or are engaged perform 40 percent greater than the average employee would,” Wick said. Vorhies said the company started working on the Rockefeller habits two years ago and are still working to apply them, but he said the company has made real progress. “It’s increased our cash flow. I see enough progress that I wouldn’t change course,” he said.

The business: Schaus-Vorhies Co. 609 West Grimes Ave. Fairﬁeld, IA (641) 472-8539

The consultant: Doug Wick Positioning Systems of Cedar Rapids douglaswick@positioningsystems. com www.positioningsystems.com

Leaders Acknowledge The Leader: HOLMES MURPHY

“We started with Holmes Murphy because of a favorable experience we had with their subsidiary, Employer Benefit Services, Ltd. The exceptional service carries through both organizations. Holmes Murphy has helped us out in trying times. Their depth of knowledge and diversity offer so much more than a typical insurance broker. Lonnie Schwartz President and COO J. E. Adams Industries, Ltd.

“Holmes Murphy helps us with one of the biggest challenges we face: managing the cost of insurance. They help us keep the cost of our health insurance, life, and disability program as low as possible while keeping our Employee Benefits competitive, so we can continue to attract quality employees.

insurance. They have a reputation for aggressively taking care of their clients. Holmes Murphy uses its buying power and diversity of lines to bring us options and cost alternatives. Their track record for results and their hard work are major reasons we chose Holmes Murphy.”

500 FIRST AVENUE NE, SUITE 300 CEDAR RAPIDS, IA 52401 319-364-0648 www.holmesmurphy.com

“Holmes Murphy works hard to earn and keep our business. They actively manage our Founded in 1972, J. E. Adams Industries, Ltd., manufactures vacuums and air machines used in the car-wash industry; cooling fans for industrial, agricultural and entertainment applications; and pressure-washer components for industrial and commercial applications.

EdgeBusiness ■ MARCH 2009

Governor recognizes organizations for performance excellence Dennis VanAuken and Gary Nesteby

IMPROVING QUALITY

othing helps a state’s economic development efforts more than cultivating successful organizations. That is one of the reasons many states have a performance excellence program that helps organizations evaluate their level of excellence and take action to reach an even higher level. In Iowa the program is called Iowa Recognition for Performance Excellence. Studies have shown that organizations following this path substantially outperform others and we want Iowa organizations to be consistently high-performing.

Gov. Chet Culver and the Executive Council of the Iowa Recognition for Performance Excellence recently announced the recipients of the 2008 Iowa Recognition for Performance Excellence Awards, Iowa’s premier award that recognizes high performance management principles. Six organizations received recognition this year. Five of those received awards at the Leadership level, demonstrating practices and achievement that reflect a high level of performance excellence based on the Malcolm Baldrige National Quality Award. Silver Award ● Guttenberg Municipal Hospital in Guttenberg — A Clayton County Critical Access Hospital that provides a wide range of inpatient and outpatient medical and surgical services, as well as many community services. ● Iowa State University, Facilities Planning and Management in Ames – A department of 440 employees that provides utilities, design and construction services and maintenance for buildings and grounds of the ISU campus. ● Wright Medical Center in Clarion — A 25-bed, Critical Access Hospital with 341 employees provides a wide range of inpatient, outpatient, and diagnostic services to residents of north-central Iowa. Bronze Award ● Cedar Rapids Community School District in Cedar Rapids — The district has the secondlargest enrollment in the state. It serves 17,600 students in 22 elementary schools, six middle schools and four high schools. ● Genesis Health System in Davenport — A health care system with more than 5,000 employees that provides services ranging from home health and ambulatory care to hospitalbased and long-term care. Other organizations receiving recognition for 2008 include: ● Veterans Memorial Hospital in Waukon — The hospital has served Allamakee County and surrounding communities for more than 50 years by providing a range of services including physical therapy services, cardiac rehabilitation services, radiology services and weekend clinics. Gov. Culver will present the awards at the annual Governor’s Recognition of Performance Excellence Celebration at noon on May 7 at the Hy-Vee Conference Center in West Des Moines. The Iowa Recognition for Performance

Excellence was established nine years ago to recognize businesses and organizations in the state that have completed a strenuous review and evaluation of their organizational performance management approaches and demonstrate improvement in delivery of value to their customers, organizational effectiveness and learning and engagement of their work force. The process is aligned with the Malcolm Baldrige National Quality Award, and the Criteria for Performance Excellence is used for the assessment. In the past nine years, there have been 68 applications for the performance excellence awards. Thirty-seven have been recognized for their achievement with two at the gold level, 14 at the silver level and 21 at the bronze level. There is no monetary award, but those who complete the process indicate it helps them identify strengths and opportunities for improvement within their companies, provides training for continuous improvement and leadership development, and assures customer focus, efficiency and work force engagement within their organizations. This process is a proven method for organizations to achieve their highest potential and become more competitive in the world marketplace. For this reason the process is used by 37 states to support their economic development efforts. Companies and organizations that complete the Iowa process are also better positioned to prepare for the Malcolm Baldrige National Quality Award. All types and sizes of Iowa organizations are eligible to apply to the Iowa process, including business and manufacturing, education, government, human services, nonprofit or health care. The Iowa Recognition for Performance Excellence process, awards and examiner training are coordinated by the Iowa Quality Center in Marion. For more information about the Iowa Recognition for Performance Excellence process and the May 7 celebration, contact the Iowa Quality Center, (319) 398-7101 or go to www.iowaqc.org

Dennis Van Auken is president of Positive Solutions in Cedar Rapids and Gary Nesteby is executive director of the Iowa Quality Center in Marion. They can be reached at dennis@positivesolutionsllc.com or gnesteby@iowaqc.org

MARCH 2009 ■ EdgeBusiness

BAROMETERS Salary plans

A helpful hand

Salary freeze

More U.S. employers are planning salary freezes or will trim pay increases to handle the pessimistic economic outlook. A look by the numbers:

A recent survey showed that 91 percent of small business owners are open to advising a recently laid off person on how to start a business. Why? Eight percent said that a lay off had played a role in their own decision to start a business. Others said they had a mentor that helped them along the way and like the idea of reciprocity. Some of their advice:

It appears as if more companies are planning to freeze employee salaries this year. Human resource ofﬁcials asked the question in February said:

25%

Plan to freeze salaries

50%

Number of organizations that plan to trim planned salary increases.

20% Are considering a salary freeze. 33%

Companies that are expected to hold salaries to 2008 levels.

3.2% Amount of base salary increase planned by 75% of companies planning an increase. 5%

The percentage of companies that planned to freeze salaries 12 to 18 months ago.

Source: Mercer survey

EdgeBusiness graphic

•Do research about your industry. •Enhance your customer service. •Control your growth. •Be frugal. •Think about ﬁnancing. •Distinguish yourself. •Get advice. •Be passionate. •Negotiate. •Hire carefully. •Obatin liability insurance.

Not sure. 4%

22% Not yet, but that could change.

Source: Society for Human Resource Management

Source: SurePayroll

Check out...

No. 22%

Yes. 52%

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EdgeBusiness ■ MARCH 2009

BUSINESS

e •v •e •n •t •s

MARCHCAL BUSINESS CALENDAR MONDAY 2 Creating More Effective Employ-

ees. As an employer, you are no doubt looking for ways to cut costs and increase your bottom line. Re-evaluating the methods of employees and implementing organization into company protocol is key to reaching company efﬁciency and success. This Kirkwood Training & Outreach Services class will be held from 6 to 8 p.m. at West High School, 2901 Melrose Ave., Iowa City. Cost is $19. To register, call (319) 398-1022 or visit www.kirkwood.edu/ce

2&4

MONDAY & WEDNESDAY Excellence in Service. We all know what bad service looks like, but do we know how to give excellent service? What do you do when the customer is angry or unreasonable? You can

keep your customer happy and satisfy business needs. In this course, you will gain the skills to address customer expectations, ﬁnd solutions in difﬁcult situations, communicate clearly and be empowered for excellence. This two-session class will be held from 5:30 to 8:30 p.m. at Kirkwood Training & Outreach Services, 3375 Armar Dr., Marion. Cost is $5. To register, call (319) 398-1022 or visit www.kirkwood.edu/ce

THURSDAY How Your International Attorney Can Make and Save You Money. This Cedar Rapids Area Chamber of Commerce Chamber Academy event will feature Steven Dickinson, shareholder at Fredrikson & Byron, sharing advice on international business transactions, including mergers and acquisitions, joint ventures, strategic alliances, foreign investment, outsourcing and offshoring and distribution arrangements. The event will be held from 11:30 a.m. to 1 p.m. at Cedar Rapids Bank & Trust, 500 First Ave NE, Cedar Rapids. Cost is $10 for chamber members and $25 for general admission. To register, contact Julie Stow at (319) 730-1409 or jstow@cedarrapids.org

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5&6

THURSDAY & FRIDAY Stepping Up to Leadership: Communication Skills Certiﬁcate. What does it take to be a successful supervisor or manager? How do you develop your leadership potential? Join Art Khaw in a

powerful two-day workshop, where you will learn techniques to motivate your employees to build win-win relationships, to give effective feedback, to address, resolve and prevent conﬂict and to position yourself for the next step up. This two-session seminar will be held from 8:30 a.m. to 3:30 p.m. at Kirkwood Center for Continuing Education, 6301 Kirkwood Blvd. SW, Cedar Rapids. Cost is $195. To register, call (319) 398-1022 or visit www.kirkwood. edu/ce

WEDNESDAY Effective Communications and Human Relations. Dale Carnegie Training brings you the opportunity to master the capabilities demanded in today’s tough business environment. Learn to strengthen interpersonal relationships, manage stress and handle fast-changing workplace conditions. This course will power you to move far beyond your comfort zone as you stretch for, and attain, ambitious new goals. The course is 12 consecutive weekly sessions held from 6 to 9:30 p.m. in Iowa City. Cost is $1,695. For more information, contact Michelle Gnida at (319) 390-3355.

TUESDAY Social Media Marketing: The New Frontier. Join Jeff McEachron, owner of Internet Marketing Group in Cedar Rapids, for this Morning Edge Seminar. McEachron will help you learn what social media marketing

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MARCH 2009 ■ EdgeBusiness

is and why businesses should be doing it and how to get started. This free seminar will be held from 7 to 8:30 a.m. at The Gazette’s Nile Kinnick Room, 500 Third Ave. SE. Please RSVP to theedge@gazcomm.com as space is limited.

WEDNESDAY Present Like a Pro. If you are someone who wants to have more impact when you speak, this program is for you. By following a few simple guidelines, you can expect immediate improvement in your speaking style. This seminar will be held from 8 a.m. to noon at Kirkwood Training & Outreach Services, 3375 Armar Dr., Marion. Cost is $119. To register, call (319) 398-1022 or visit www. kirkwood.edu/ce

WEDNESDAY Speed Networking. Speed Networking is a growing phenomenon among business groups and professional organizations focused on business relationship development. It is a well-organized, fast-paced program that allows participants to meet fellow business professionals, learn about other organizations and exchange business cards in a short period of time. This Iowa City Area Chamber of Commerce event will be held from 4 to 5:30 p.m. at Hills Bank & Trust Co., 1009 Second St., Coralville. Cost is $10. RSVP to rsvp@iowacityarea.com by March 11.

THURSDAY Mastering Critical Dialogue. Could a conversation be keeping you from getting what you need? Whatever the issue — from lack of teamwork to strained relationships — it’s likely that you’re experiencing the effects of a poorly held conversation or a conversation that needs to happen. Learn tools and techniques to take your conversations to the next level. This seminar, sponsored by the local International Association of Administrative Professionals chapter will feature Pat Bayles with Mercy Medical Center. The Networking will begin at 5:15 p.m. followed by dinner and the program at Kirkwood Center for Continuing Education, 7725 Kirkwood Blvd. SW, Cedar Rapids. Cost is $14 for members, $20 for non-members. To RSVP, contact CRIAAPRSVP@aol.com or call Sherri Hawkins at (319) 241-8482.

THURSDAY PM Exchange. This Cedar Rapids Area Chamber of Commerce networking event will be held from 5 to 7 p.m. at Involta, 5055 REC Dr., Marion.

19 & 20

THURSDAY & FRIDAY Beyond Rubies: A Women’s Conference. The conference features more than 80 workshops and these vibrant, captivating speakers: Julia Theisen, The Seven Habits of Happiness; Mary Kramer, retired U.S. Ambassador, Personal Leadership Skills — Not Magic, Just Practice; Jim Jelinske, You Can’t Be Serious! For a detailed brochure or to register, visit www.kirkwood.edu/rubies or call (319) 398-5529. The two-day conference will be held from 8 a.m. to 5 p.m. at Kirkwood Community College’s

Iowa Hall, 6301 Kirkwood Blvd. SW, Cedar Rapids. Cost is $95.

FRIDAY Legislative Brown Bag Lunch. This Cedar Rapids Area Chamber of Commerce member event will be held from noon to 1:30 p.m. at the chamber, 424 First Ave. NE, Cedar Rapids. Bring a lunch to meet with local legislators. There is no cost to attend, but registration is required. For more info, contact Sara Mentzer at (319) 730-1404. Cookies, soda and coffee will be provided.

WEDNESDAY Wealthy Woman Within: How Changing the Way You Think Can Make You Rich. The Eastern Iowa Women Business Owners Chapter presents Melanie Vick, a Professional Certified Leadership consultant, who will teach you how to think like someone with a millionaire mind. You will learn how your personal “money paradigm” determines your financial future. She will guide you through exercises that will enable you to identify and reset the way your subconscious mind influences your ability to make money. And she will empower you to believe that your future can be as rich as you dream it to be. The seminar is 5:30 to 7 p.m. at Kirkwood Center for Continuing Education, 7725 Kirkwood Blvd. SW, Cedar Rapids. Cost is $20 for members and $35 for non-members. To RSVP, call Pat Roland at (319) 981-7289 or e-mail rsvp@ nawbo-easterniowa.com by noon on March 20. Visit www.nawbo-easterniowa.com for more information.

THURSDAY Business PM. This Iowa City Area Chamber of Commerce networking event will be held from 4:30 to 6:30 p.m. at Toyota Scion of Iowa City, 1445 Hwy. 1 West, Iowa City. Cost is $5 for members and $7 for nonmembers.

TUESDAY How to Supervise People and Lead a Team. Learn techniques to deal with bad attitudes, incompetent or lazy employees, disciplining employees, ﬁring employees and avoiding legal pitfalls. You’ll also learn how to hire the right person for the job by improving your interviewing skills. Tuition is $149 through March 25 and $199 on March 26. The class will be held from 9 a.m. to 3 p.m. at Kirkwood Center for Continuing Education, 6301 Kirkwood Blvd. SW, Cedar Rapids. To register, call (319) 398-1022 or visit www. kirkwood.edu/ce

SOCIAL CALENDAR 20

FRIDAY Fences. Theatre Cedar Rapids presents this August Wilson’s Pulitzer Prizewinning drama about a 1950s father who is victimized by discrimination in pro sports. Other performance dates are March 21-22 and 27-29. Performances will be at 7:30 p.m. on

Thursday, Friday and Saturday and 2:30 p.m. on Sunday at TCR Lindale, 4444 First Ave. NE, Cedar Rapids. Tickets are $20 to $25 for adults. For more info, go to www.theatrecr.org

THURSDAY Side Street Strutters. The Community Concert Association brings this seven-piece ensemble to the U.S. Cellular Center in Cedar Rapids. The Side Street Strutters pay tribute to the great Big Bands of the 1930s and 1940s. Tickets are $10 for adults. For more information, go to www.uscellularcenter.com

DIGEST SBA Loans* Linn County

J & S Products LLC, Cedar Rapids, $58,000, two jobs created or retained.

●

J & S Products LLC, Cedar Rapids, $25,000, two jobs created or retained.

●

* Note: Information is based on approvals only and does not imply funds have been disbursed

Building Permits JOHNSON COUNTY 210 Second St., Coralville, restaurant remodel, $79,430, Lone Star Steak House. ●

● 4911 Morse Rd. NE, Iowa City, Cell Tower Equipment, $68,635, Southwest Co. Wireless. ● 1375 Highway 1, Iowa City, studio lab for art program, $150,000, University of Iowa. ● 2200 Lower Muscatine Ave., Iowa City, mezzanine extension, $300,000, Procter & Gamble. ● 2200 Lower Muscatine Rd., Iowa City, ofﬁce and restroom alteration, $295,000, Procter & Gamble. ● 1820 Boyrum St., Iowa City, hair salon tenant ﬁnish, $71,487, Textures Salon. ● 1861 Lower Muscatine, Iowa City, remodel, $67,826, McDonalds Corp. ● 2440 Mormon Trek Blvd., Iowa City, remodel, $66,923, McDonalds Corp. ● 2417 Heinz Rd., Iowa City, antenna and equipment building, $100,000, Iowa Wireless Services.

LINN COUNTY 1905 N. Center Point Rd., Hiawatha, warehouse addition, $761,736, Knapp Design Build. ●

1218 Dina Ct., Hiawatha, new ofﬁce building, $1,617,715, Rinderknecht Associates. ●

410 C Ave. NE, Cedar Rapids, industrial remodel, $150,000, Cargill.

●

EdgeBusiness ■ MARCH 2009

Understanding differences in learning styles can increase productivity

Becky Esker

EFFICIENT WORKPLACE

ftentimes, differences in the workplace create problems and slow down productivity. However, with appropriate understanding of the differences, effectiveness can be increased.

• • • •

The first step toward increased productivity is recognizing everyone has different learning styles. The three most common styles are visual, auditory and tactile. The majority of people are visual learners. Although there are different styles, one style is rarely used exclusively. In fact, there is a method of learning called Orton-Gillingham that incorporates several learning styles. This method is a multi-sensory approach to learning. New information is learned through hearing, speaking, seeing and writing. Although this method is primarily used in teaching reading and language to students, its concept is worth noting. Individuals who are visual learners easily understand and absorb written language, pictures, diagrams or videos. Auditory learners find participation in meetings and listening to lectures beneficial. Tactile learners prefer to experience learning through hands-on activities. Touching and feeling are important portals for tactile learners. Once you recognize that not everyone learns in the same manner, you can tailor your communication with employees and co-workers. This means written words like e-mail may not be the best choice for communicating new information to a co-worker or employee. If the recipient is an auditory learner, speak via telephone or meet one on one. Because most information is given visually or verbally, realize tactile learners may not get something perfect the first time. Anticipate and understand that they may need to experiment with the new task a couple of times before mastering it. They need an opportunity to touch

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and feel the process. In addition to the three most common styles, some people are also social learners. These individuals prefer to learn in a group setting or with a team. On the other hand, solitary learners prefer to work alone and thrive on self-study. The key to improving workplace learning and communication is to understand how your co-workers or employees learn and present the information in that manner. According to Learning-Styles-Online.com, you can identify a preferred learning style by paying attention to phrases used. Visual Learners: I see how this works. I can’t picture it. Let’s look at all perspectives. Auditory Learners: That sounds right. It’s clear as a bell. It’s music to my ears. Tactile Learners: That feels right. Stay in touch. That doesn’t sit right with me. Social Learners: We can work it out. Let’s pull some people together to discuss. Solitary Learners: I’d like some time to think it over. I will get back with you on that. If you take advantage of presenting information in the preferred learning format, the information will be received in the most effective manner. If you are unsure of the preferred method or are presenting to a group of individuals, take the time to use several of the styles. Understanding the differences in learning styles will not only increase productivity, it also will lend itself to happier employees. Becky Esker is the president and owner of Get Organized! LLC, Cedar Rapids. She can be reached at (319) 395-7477 or becky@getorganizedcr.com