In Business - September 2011

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IN BUSINESS • SEPTEMBER 2011

Inside In Business:

COVER STORY: WOMEN IN BUSINESS

Women in Business: • Lori Brakke continues to expand her business, White Sail in Clear Lake/Story on this page.

• KIMT’s Jaime Copley (right) is living her dream job/ Page 5.

• Longtime quilting partners thread their way to success at Country Threads/Page 7.

Behind These Walls: • Stellar Industries: Innovation.

Expansion/Page 9.

News You Can Use: • Older workers present opportunities and challenges for employers/Page 12.

• Maintaining a visual storefront will help your business grow/Page 14.

• Finance column: Avoid costly payroll mistakes/Page 17.

• Commentary: Time to transform our regional economy is now/Page 18.

• Think big things: 12 steps to achieving them/Page 20.

• Dealing with smartphones, other mobile devices on the job/Page 21.

• The battles of cybersecurity/Page 24.

On the Cover: Lori Brakke, a 1991 Clear Lake High School graduate, has used patience, filling a niche and good customer service to help her open White Sail stores in Clear Lake and Mason City. Her story is on this page.

In Business: Vol. 9, No. 3, September 2011 Publisher: Howard Query 641-421-0500 howard.query@globegazette.com Managing Editor: Jane Reynolds 641-421-0564 jane.reynolds@globegazette.com Design Editor: Tom Thoma 641-421-0566 tom.thoma @globegazette.com Associate Editor: Bob Steenson 641-421-0530

bob.steenson@globegazette.com Advertising and Circulation: Greg Wilderman 641-421-0545 greg.wilderman@globegazette.com

••• In Business is a quarterly publication of the Globe Gazette.

Reach us at Box 271, Mason City, IA 50402-0271 or by e-mail at news@globegazette.com.

Taking the plunge again and again Lori Brakke opened White Sail in Clear Lake and has since expanded there and into Mason City

By LAURA BIRD laura.bird@globegazette.com

hen Lori Brakke was in high school she began working selling cosmetics at Bergo’s department store in Mason City.

It was then that she realized what she wanted to do with the rest of her life.

“That’s what really got me interested in it,” Brakke said. “I really liked teaching people about skin care and makeup.”

Today the 1991 Clear Lake High School graduate owns White Sail stores in Clear Lake and Mason City.

Helping Brakke get to where she is have been patience, filling a niche, good customer service and other qualities, she said.

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AFTER GRADUATING from high school Brakke went to cosmetology school and then moved to Scottsdale, Ariz., not thinking North Iowa could support her.

“At the time, facials were unheard of around here,” Brakke said.

After arriving in Arizona, instead of looking for open positions she asked people where the best day spa in the area was.

“I knew that’s where I wanted to work,” Brakke said.

She worked there for about eight years and then ventured out on her own.

Her time at the day spa helped her become familiar with the business and what works and doesn’t work.

Brakke owned her own day spa in Arizona for five years before

LAURA BIRD/The Globe Gazette

Lori Brakke moved White Sail to its current, larger location in 2008. It is located 306 First Ave. N. in Clear Lake. selling it and moving back to Iowa.

She decided to come back to Clear Lake because all of her family was still in the area and while visiting she had noticed few spas and estheticians.

“I thought why not try it here,” Brakke said.

When she came back to Clear Lake she worked in the back room of a salon but quickly outgrew it.

“I really filled a need,” Brakke said. “To be honest I didn’t really know if I’d be able to completely support myself.”

She did, then quickly bought a little building on Buddy Holly Place, Clear Lake.

“Within two years I outgrew that building,” Brakke said. “I was getting calls all the time and I could not meet their needs.”

She said finding her niche and stressing customer service helped her grow quickly.

“Your best advertising is a happy customer,” Brakke said.

“Once they come in they’re going to tell their family and friends.

Word of mouth is the best advertising.”

IN 2008 she took the plunge again by expanding into a larger building, located at 306 First Ave. N., Clear Lake.

Brakke remains there and has added services over the years.

Starting out small has been one of her keys to success.

“I think some people make the mistake of starting out really large and not knowing what they’re getting into,” she said.

Even a business of her size is time-consuming.

“It definitely isn’t a 9 to 5 job,” Brakke said. “You have to be willing to work seven days a week.”

She does, which has allowed the Clear Lake store to offer facials, pedicures, massages, a fitness room, relaxation room, men’s and women’s steam rooms See BRAKKE, Page 4

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IN BUSINESS • SEPTEMBER 2011

Finding quality volunteers ear Professor Bruce: We run a growing charity called Moms Who Kick, and we raise money for breast cancer research and women’s health. We are looking for volunteers, including smallbusiness owners to help us grow. How do we explain the benefits for their small business?

Answer: Educate small businesses on the benefits of collaborative efforts, otherwise known as cause marketing. It is an extremely powerful way for any business to show its brand personality to the world.

Laney Liner, marketing director for Moms Who Kick Inc., suggests ways to introduce your charity and illustrate the benefits of aligning with

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your cause: • Create a plan that identifies what businesses you will contact — and why and when.

“Why” is vital Bruce Freeman because it Small-Business will supProfessor port why small business should help you.

• Research. Make sure you properly research small businesses that you believe share your charity’s same core values.

• Create a presentation. Customize it based on each small business you wish to contact.

• Ask for referrals.

Reach Bruce Freeman, the Small Busi ness Professor, at Bruce@SmallBusi -

BRAKKE: Expanded onto plaza in downtown Mason City From Page 2 and retail items such as skin care products.

BRAKKE SAID the retail items are examples of how she tries to think outside of the box and listen to what customers want.

“I feel like when people come in here and shop it is hard-to-find items that are available,” she said.

“I’m just trying to fill a need in the community. Very few spas have retail space.”

Listening to customers is part of what has made Brakke successful.

Another key to success for White Sail has been having a website and Facebook page.

Maintaining both pages can take up time but Brakke said it’s a must in today’s digital world.

While Brakke has been successful, it hasn’t been without its challenges including hiring quality employees “The biggest challenge in being in a small community is finding qualified employees,” Brakke said.

Finding the right person is so important that she went 1-1/2 years without offering pedicures because

she couldn’t find a quality employee to fill the position.

Brakke has also learned over the years not to feel obligated to hire family and friends.

“Hire someone you have a good feeling about,” she said.

ANOTHER CHALLENGE has been a woman owning her own business.

“I’ve had men come into my spa and ask who owns the business,” Brakke said.

She tells them it’s her, but sometimes they don’t believe her or think she must have a husband helping her.

While some people have been skeptical of a single woman owning her own business, Brakke hasn’t it stop her.

She recently expanded again by opening a second White Sail location, on the plaza in downtown Mason City.

The store includes retails items and will eventually offer services such as facials.

“I have been thinking about open-

Lori Brakke’s Tips for Success • Start small. Brakke said its better to start off small instead of being in over your head right away.

• Form a good support system. Talk to people who really know the business and find people who are going to support you.

• Don’t feel obligated to hire family and friends. It could ruin a relationship if it doesn’t work out. Instead, employers should hire someone who is qualified and that they have a good feeling about.

• Create and maintain a website and Facebook page. Both are extremely important in today’s digital world.

• Try to think outside of the box.

This and listening to what customers want will help fill needs.

• Have excellent customers service.

If someone has a good experience at your business, they are going to tell other people. Brakke said word-ofmouth is the best advertising.

— Laura Bird ing a second location in Mason City but had no idea where,” Brakke said.

She decided on the plaza because of the nearby Historic Park Inn. Ironically the building she is renting is owned by Pat Bergo.

IN BUSINESS • SEPTEMBER 2011

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WOMEN IN BUSINESS

Copley living her dream Moves up KIMT ladder to news director and all the responsibilities that come with it

By JULIE BIRKEDAL For In Business MASON CITY

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aime Copley of KIMT News 3 takes challenges and changes in stride.

During her 12 years at the Mason City TV station, Copley, 34, has worn many hats. She started as a reporter and has since anchored all the newscasts, run the assignment desk and served as executive producer.

In July, Copley was promoted to news director.

“There’s just not a dull moment and the days just fly by,” she said. “I thought they did before, when I was anchoring.”

A native of Clear Lake, Copley remembers watchSee COPLEY, Page 6 Jaime Copley (right) works with Sarah Danik as she edits video for a KIMT newscast.

JULIE BIRKEDAL/For In Business

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COPLEY: Focus in new job is on news product, fairness, balance and budget

IN BUSINESS • SEPTEMBER 2011

ized she sounded young and didn’t necessarily have what many would consider a voice for news. She focused on being approachable, caring and genuine.

Mitch, 22, is a Forest City police officer.

From Page 5 The opportunity as news ing KIMT News 3 growing spotlight but gives her education, crime, economy, director arose at such the up. She told her parents increasing responsibility. technology, family and right time that Copley when she was 12 that she “This is my dream job but environment. doesn’t believe it was coinwanted to work there. that was really cool,” she Pete Hjelmstad, now a cidence. Faith is important “I wanted to stay in the said of anchoring. “That field service coordinator for WHILE LEARNING new to her whole family, she community,” she said. “I was a fun job that changed the Iowa Department of work duties, like dealing said. really do love this station from day to day.”

Transportation, was an with the budgetary aspects “God is always the conand feel like it is home away anchor at KIMT when Cop- of running the newsroom, stant,” she said.

TODAY, COPLEY’S from home . … Just because ley arrived at the station.

Copley and her husband, Formerly a regular volunit’s a small market doesn’t focus continues to be on the “I remember when she Stephen Bartleson, share teer at Community Kitchen mean it doesn’t come with station’s news product, its started she wanted to be a the joys of parenting a of North Iowa, Copley has lots of challenges.” fairness and balance, as well news director some day,” daughter, Gabrielle Faith, also taught dancing to young Copley studied electron- as the budget.

Hjelmstad said. “It’s really born March 15. children at Dancing His ic media communications “I want to do a good job. I rewarding to see somebody They are blessed to at last Praises in Clear Lake. and journalism at Universi- want to put out a good news like Jaime achieve her goals.” share similar work hours.

“She’s an amazing person ty of Northern Iowa. Durproduct,” she said.

Hjelmstad described When Copley was anchor- and she’s a very strong pering those years, she worked Her office reflects her Copley as “a hard worker, ing, she would work from 2 son, professionally, personin production at KWWL focus on business. Aside driven and loyal.” to 11 p.m. Her husband, who ally and spiritually,” said News 7 and edited the col- from a couple of small famiAnd she was someone is a mason, works days.

NIACC instructor Sethanne lege newspaper. ly photos it’s all about news. who made the newsroom “He always is the one DeGabriele, who met CopWorking at KIMT she There’s a large desk, a table fun, he said. that cooks dinner. I can’t ley at UNI. ” She’s very dedsoon learned to prepare the for meetings with staff and It’s important to keep stand to cook,” Copley said, icated in all of those areas, content for the daily 5, 6 several monitors high on gaining new skills and but adds they are a good which I think is rare, and and 10 p.m. newscasts as one wall. One of the more knowledge and to rely on team. she never gives up on anywell as for website updates. notable elements is the others, Copley said.

Copley also has two step- thing whether it is a specific “You adapt; you just do. board reminding reporters “I’m never done learning. children. Paige, 20, is job she wants or something There’s no choice,” she said. pitching stories to remem- I’m never done trying,” she studying at the University she wants for her family or Moving from her former ber that the station likes to said. of Northern Iowa this fall. friends.” position as executive profocus on multi-faceted stoBack when Copley the ducer and anchor at 6 and 10 ries. Target topics listed reporter had an eye on p.m.takes Copley out of the include consumers, health, being an anchor, she real-

Jaime Copley’s tips for success: 1. If you can, start at the ground level and work your way up. It gives you the chance to learn what each position entails and that gives you a great advantage as a manager.

2. Be patient. Don’t come into a job looking to jump into a management position. Work hard, keep your ego in check and doors will open for you.

3. Believe in yourself and in your company. That confidence will show and will impact everyone you work with.

4. Maintain a strong work ethic.

5. Change is the only constant. Be OK with stepping outside of your comfort zone. Embrace the change, especially if it will help you advance in your career.

— Julie Birkedal

IN BUSINESS • SEPTEMBER 2011

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WOMEN IN BUSINESS

JULIE BIRKEDAL/For In Business

Mary Etherington (left) points out quilt patterns at Country Threads. Connie Tesene (right) reminisces about the early days of the business in the barn loft classroom.

THREADS of SUCCESS Longtime quilting partners have made Country Threads popular nationwide

By JULIE BIRKEDAL For In Business GARNER

ountry Threads has been stitched together over the past 28 years.

“We have spent the majority of our adult lives doing this,” said Mary Etherington, co-owner of the pattern company and quilt shop with Connie Tesene, 58, of Garner.

“That’s almost an oddity any more,” Tesene said, noting many people change jobs every five years.

“It’s by the seat of our pants still,” said

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Etherington, 63, whose farm is home to the business.

They talk about retiring but don’t make any concrete plans.

The two longtime friends and business partners shared a passion for quilting when they first met during a quilting demonstration at the Armstrong House in Britt in 1980.

At the time, Tesene was making country crafts at her Garner home. Etherington worked in Mason City but taught quilting classes at home.

“I’ve always wanted to sew but my mother was a baker. She was a farm wife,” said Etherington, who grew up north of Britt. “She hated to sew, so I kind of had to teach myself.”

See COUNTRY THREADS, Page 8

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Taking the quilt shop to the customers is among changes at Country Threads

IN BUSINESS • SEPTEMBER 2011

GARNER — Changes in the economy have brought changes to Country Threads, located at 2345 Palm Ave. “Nearly every woman works.

That has changed over the years but it also allows her to have her own money,” said Connie Tesene, who co-owns the business with

Mary Etherington.

The Internet poses both a challenge and a benefit. Many people don’t go to the store any more, especially in rural Iowa during winter.

“But you want people in the physical store,” Tesene said.

During winter, staff members

remain busy getting ready for quilt shows in April and May. “We have to take the quilt shop to the customer where 15 years ago they were flocking here,” said Etherington, whose farm is home to the business.

Country Threads takes quilt patterns and kits, rag rug kits and

punch needle embroidery kits to shows in Des Moines, Houston and Columbus, Ohio, Etherington said.

They take a 16-foot moving truck. When they get there, they set up a store within a 20-by-20foot booth.

“And make it look like us,” Tesene said.

COUNTRY THREADS: Published hundreds of books with thousands of patterns From Page 7 At one point, Etherington said her mother gave her a set of pots and pans for a gift. She took them back and traded them for a Singer sewing machine.

“My mother let us play with the sewing machine,” Tesene said.

Originally from Hanlontown, she took every home economics class that she could but she didn’t make her first quilt until 1976.

It was all hand-sewn, created through a quilt class offered in Iowa City during that bicentennial year.

“I liked that it could fit a bed and it didn’t have to fit me,” she said.

hard to find 100 percent cotton,” Tesene said.

fort and eclectic whimsy to the rural farm quilt shop.

Several rescue dogs or even WHEN THEY started a special cat may keep out, each contributed $300 shoppers company as they to the business. They’ve make selections. had lean years in terms of SAMANTHA LUND, salary but never added more personal funds to the who taught in San Diego initial investment, Ether- for six years, discovered the ington said. They borshop after moving to Garrowed money once, for a ner a year ago and becombuilding expansion. ing a stay-at-home mom.

Designing quilts on She’s was back in the graph paper rather than classroom as a student at computer, drawing on quilt camp this summer. imagination and experi“I actually like to sew ence, continues to be now,” Lund said. “EveryTesene’s favorite aspect of one is just really friendly.” the business. She and In the barn loft, there Etherington talk about are about nine tables covdesign and colors regardered by bright, reding their works in progress. checked table cloths.

WHEN THEY decided “We’ve branded ourThere, Country Threads to launch their business, selves over the years,” hosts quilt camps for up to they came up with four Etherington said.

25 women in the spring or patterns and four quilt Country Threads is fall. A beginning camp is models. A Minneapolis known for darker, muted usually held in June. quilt shop decided to offer colors.

Groups of friends from all one of the patterns at quilt “We like traditional over the country and some market. quilt patterns,” Tesene mothers and daughters “That kind of got us our said. return year after year, foot in the door,” EtheringThere is a whole buildEtherington said. ton said. ing devoted to reproduc“We have a great office Country Threads started tion fabric from the Civil manager in Mary Baker,” in the house in 1983 and War era, said Val Carolus, Tesene said. “We can go then moved to a 1950s who lives south of home and sew and create chicken house they Klemme. on our own.” remodeled. Since then, Carolus, who estimates The business remains a they’ve published hunshe has made 150 quilts, partnership. Etherington dreds of books with thou- took her first class from prepares the newsletters sands of patterns.

Tesene in 1991. She has and is chief groundskeeper The first few years they visited quilt shops around while Tesene pays the bills. may have created six patthe country on vacation, In addition to Baker, the terns a year. Now, they but none beat Country business employs eight might do 20 to 25 patterns. Threads with its scrappy, others part-time.

The shop helps. country feel.

“I try to sew something “We didn’t have it at “Quilting is a hobby that every day,” Tesene said. first. We had to drive to I do for myself,” she said.

“The shop can suck you in Minneapolis to get fabric,” “I’m out there probably and keep you there for Etherington said. once a week.” hours without you knowIn those days, “It was There’s a homey coming it.”

Tips for Success from Mary Etherington and Connie Tesene of Country Threads: 1. Plan for success.

2. Surround yourself with good, upbeat people.

3. Work in partnership that includes each individual’s strengths.

4. Add a dog or a cat.

— Julie Birkedal

JULIE BIRKEDAL/For In Business

A barn quilt in the garden at Country Threads.

IN BUSINESS • SEPTEMBER 2011

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BEHIND THOSE WALLS

Stellar: Innovation. Expansion.

Each new endeavor considered closely to determine value to growing company

By TIM ACKARMAN For The Globe Gazette GARNER

rancis Zrostlik took a leap of faith in 1990 when he founded Stellar Industries in Garner along with Gary Bomstad and Jim Vlaanderen.

The fledgling company did not have a final product design or an established customer base.

What the team did have was a complementary set of skills — Zrostlik in sales and contracting, Bomstad in production and Vlaanderen in design engineering — as well as a vision.

Their first product was a hook-lift, a device that

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TIM ACKARMAN/For In Business

David Zrostlik shows a Stellar 7621 Telescopic Mechanic Crane. The hexagonal boom adds strength and stability, Zrostlik noted. He said perhaps the biggest driver of the company’s expansion was the 1996 decision to begin producing cranes. allows one truck chassis to accommodate interchangeable bodies and

said Stellar’s employee ownership and profit sharing Stellar Industries has contribute to both. “Our enjoyed strong growth employees learn if we do recently despite a generally things right the first time sluggish economy. Some there’s a reward at the end. reasons suggested by com- It’s their company, and they pany officials include: take a lot of pride in that.”

1. Strong customer ser 3. Commitment to innovice: vation and marketing: “We are out there listenStellar remained commiting to our customers,” Steve ted to a strong sales force and Schnieders said. research and development “Our customers like work- during tougher times. ing with us,” David Zrostlik “We added more engisaid.“They notice the cleanli- neering to develop new prodness of our factories and the ucts and kept sales people in friendliness of our people.” the field,” Zrostlik said.“We 2. Quality products and wanted to keep people aware satisfied employees: of us in the marketplace. It These might seem like seems to have paid off.” separate items, but Zrostlik — Tim Ackarman

Stellar Tips for Success:

thus perform multiple functions. The men were confident the device,

already popular in Europe, would fill a need in the U.S.

The gamble paid off with commercial success and almost steady growth.

Today Stellar employs about 260 workers using 185,000 square feet of building space to manufacture service trucks, lifts, cranes, tool drawers, compressors and other accessories.

Francis Zrostlik died in 2000. His son, David, Zrostlik, oversees day-today operations as company president although he quickly points out that, “Mom (Barbara Beyer) is still chairman of the board.”

Stellar has grown through both internal expansion and key acquisitions, according to Zrostlik.

The pattern began in 1993 when the company acquired the Collins Equipment division of

David Manufacturing, which offered a line of custom service vehicles.

Stellar introduced its American Eagle product line in 2002 when the company acquired the compressor assets of a failing supplier. American Eagle also began producing tool drawers when officials at Stellar became dissatisfied with service from its original manufacturer.

Zrostlik said perhaps the biggest driver of expansion was the 1996 decision to begin producing cranes.

“Once we started building our own cranes the growth really started accelerating.”

Each new endeavor has been carefully considered to make sure it brings value to the company and its customers, Zrostlik said.

He cites the 1999 decision See STELLAR, Page 11

IN BUSINESS • SEPTEMBER 2011

PAGE 11

three opportunities to pass.

“We’ve had a few people fail,” Popp-Bruesewitz to begin producing a tions for others, said said. mechanic service crane as Operations Manager Steve Given the significant an example.

Schnieders. training investment, offi“If we’re going to do “If one of our customers cials with Stellar work this,” he sees somerecalls saything that’s ing, “it going to needs to be help them sufficiently out, different, chances are offer more it’s going to features and help the do more entire PoppSchnieders things than industry.”

Bruesewitz any other The care put into prodcrane on the market.” uct design is carried over “We’ve never entered the to the manufacturing market with a ‘me-too’ process, Zrostlik and product,” said Donna Popp- Schnieders noted.

Bruesewitz, communicaStellar has its own comtions manager at Stellar. prehensive welder-trainMany innovations at ing program including Stellar have been sparked classroom and practical by inquiries from cuscomponents. tomers, Zrostlik said.

Every new welder must “In most cases we have complete the training a customer base we’re regardless of previous already familiar with,” experience.

Zrostlik said. “They bring “We teach the science of a need to us and we’re able welding,” Schnieders said. to fill it with a product “We haven’t had a guy go redesign of some sort.” through (the program) and While Stellar is able to say he didn’t learn somecustom-accessorize its thing.” products, innovations The training culminates developed for one cuswith a rigorous welding tomer often have applica- test. Employees are given

STELLAR: Many innovations sparked by inquiries from customers From Page 9

TIM ACKARMAN/For In Business

Dylan Crosser of Garner welds a main boom for a telescopic crane. Crosser trained at Stellar throughout his senior year as part of a cooperative program with Garner-Hayfield High School begun last year.“It worked out well for us and I think for the students as well,” Operations Manager Steve Schnieders said.

hard to retain employees by giving them a stake in the company.

“Most every employee has at least some partial ownership,” Zrostlik said.

Stellar also makes every See STELLAR, Page 12

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IN BUSINESS • SEPTEMBER 2011

toolbox/HR

OLDER A WORKERS Many boomers choosing to remain on the job, presenting opportunities and challenges to employers

By TIM ACKARMAN For In Business

n aging workforce presents opportunities and challenges to today’s employers.

The first members of the Baby Boom generation, born from 1946 to 1964, are approaching traditional retirement age. Many are choosing to remain in the work force.

Some do so because they find their jobs stimulating. For others, longer life expectancies, declining return on savings and investments, and stagnant Social Security payments have made work a financial necessity.

A recent Iowa Workforce Development and U.S. Census Bureau collabo-

rative report estimates there are more than 285,000 Iowa workers 55 or older.

The size of this age group increased by 25 percent from 2004 to 2009, with older workers constituting nearly 20 percent of the overall work force. Continued growth is expected.

Conventional wisdom holds that older employees may become less productive, be more prone to injury, have higher rates of absenteeism and increase a company’s health care costs.

Business researchers say many of these concerns are overblown.

Older workers’ increased experience often more than makes up for any physical decline, noted professor Peter Cappelli with the Center for Human

Resources at the University of Pennsylvania’s Wharton School of Business.

While older workers are more likely to have medical conditions, they are less likely to have small children. This decreases both absenteeism and total family health care costs, Wharton researchers noted.

While health insurance costs are greater for older workers, the disparity is not as large as many assume, according to researchers at the Sloan Center for Aging and Work at Boston College.

Insurance mandates for services such as infertility treatments, mental health care and substance abuse treatment used more frequently by younger See OLDER WORKERS, Page 13

STELLAR: Service center expected to open this fall in Mason City From Page 11 effort to provide a modern, safe, clean and comfortable work environment, according to Schnieders.

“We’re one of the few manufacturing facilities around with a climatecontrolled weld shop.”

That commitment to employees was put to the test when the economic downturn affected demand severely in 2009.

Layoffs were considered but the company instead took advantage of the Voluntary Work Share program in which many fulltime employees worked 24 hours per week while receiving unemployment for the other 16.

“We really saved a lot of jobs with Stellar through that program,” Zrostlik said. “To be able to keep all those long-term employees and have them ready to go when the economy came back was good for us.”

Share in February 2010. By April employees were working overtime, and by June the company was hiring new employees.

“We’ve added 60 people since the first of the year, and we’re still hiring,” Zrostlik said.

To meet the increased demand and accommodate those new hires, Stellar is just completing a 10,000square-foot addition.

to purchase its assets in May. Kiefer Manufacturing, now a wholly owned subsidiary of Stellar, provides 70 highly skilled workers and another 130,000 square feet of manufacturing space in Kanawha. A smaller plant in Sneedville, Tenn., employs 20.

Zrostlik said Stellar hopes to maintain Kiefer’s original product line as well as expand production of StelIN ANOTHER effort to lar components. The comboost production, Stellar pany is investing in modturned to Kiefer Built in ernization and increased Kanawha. The trailer man- efficiency at the plant. ufacturer was still strugA TRIP to Mason City gling with the economy, so Stellar approached comled Zrostlik to initiate pany officials about outanother major new project sourcing some of their this year. On the way home excess work. from his son’s basketball “They did a lot of weld- game at Newman Catholic ing and had a good paint High School, he noted the facility,” Zrostlik said in former United Rental explaining the decision. building was for sale.

“We weld a lot, and we “We always have a chalpaint a lot.” lenge when a customer WHILE ECONOMIC Despite the influx of wants a truck repaired,” recovery has been sluggish work from Stellar, Kiefer Zrostlik explained. “We at many companies, Stellar continued to struggle with don’t mind doing the work has seen demand increase it’s own product line. The but it’s disruptive to our greatly. The company dis- company was in danger of new truck production.” continued Voluntary Work closing, prompting Stellar Zrostlik had long con-

sidered establishing a separate sales and service center.

“It’s been in the back of my mind for 20 years,” he said. “What pushed it this year was how busy our shop is. To find a good building in a prime location, everything fell together at the right time.”

Although it has “taken a back seat to Kiefer” for much of the year, Stellar is now putting a lot of effort into the service center.

Zrostlik expects the facility to open early this fall.

EXPANDING QUICKLY but intelligently to meet growing needs is the top priority for Stellar in the near term, according to Zrostlik and Schnieders.

“The challenge is keeping up with demand,” Schnieders said. “We’re always planning towards the future.”

Other challenges involve integrating the latest technology into Stellar products, according to Engineering Manager Matt Schroeder.

Computers have

changed the industry significantly in the past decade, Schroeder said.

“Where we used to use a lot of hardware and handwiring, now it’s done with software.”

Schroeder Many of Stellar’s mechanical and industrial engineers have been taking classes on computer programming to keep up, Schroeder noted.

Innovations in the truck industry also impact Stel-

lar, Schroeder said. New emission-control devices, hybrid electric vehicles and trucks powered by compressed natural gas all present new challenges.

“We have to design around the innovations.”

After the lean times of 2009, Stellar officials are pleased to be “struggling” with the need to produce a greater number of more advanced products in the face of growing demand.

“Things are going great here,” Schnieders said.

“It’s sunny and 70 degrees at Stellar Industries.”

IN BUSINESS • SEPTEMBER 2011

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OLDER WORKERS: Productivity, training ability

see various departments.

Tips on Hiring, Managing Older Workers: “They’re very key people,” Sukup said.

From Page 12 • Carefully consider the skills and abilities of each While some of these leaders are older workers, Sukup workers are closing the cost gap with older employees, employee or potential employee without preconceived noted older employees do not automatically possess researchers pointed out. notions, advises Charles Sukup of Sukup Manufacturing. better leadership skills or a stronger work ethic than The economic downturn led many employers to lay “You can’t make generalizations based on age.” younger colleagues. off workers or cut back on hiring. Older workers are • Personality is at least as important as qualifications “It’s more a case of personality type,” he said. “We see increasingly finding themselves back in the job market, more variation between people within a generation than regardless of age, Sukup noted. “People get hired because often after decades of stable employment. of what they can do … They get fired because they can’t get between generations.” along with other people.”

For the most part, he said, older workers deal well with OLDER WORKERS’ higher level of experience and • “Don’t view (experienced workers) as overqualified,” younger supervisors. training can actually be a concern for some business said Holly Eichmann, manager of the staffing agency “Some people are more suited (for) and comfortable professionals hiring new employees, according to Holly (with) being leaders,” Sukup said. “Others say, ‘Just tell Express Employment Professionals in Mason City. “They Eichmann, manager of the possess very valuable skills you can tap into.” me what you need done and staffing agency Express • “Call us with openings,” advised Carole Lemon, employI’ll get it done for you.’ ” Employment Professionals ment and training coordinator for Experience Works. “The Many aspects of manu(www. expresspros.com) in facturing are physically people in the Experience Works program are here because Some people Very few peoMason City. demanding. Sukup noted they want and need to work.” are ple are Business owners and some positions are less — Tim Ackarman worry skilled strenuous than others, more looking managers employees may see lowerallowing options for those Works (www.experienceworks.org), a national suited employees whose strength Experience to jump level positions only as a non-profit organization dedicated to helping older people short-term option, Eichand stamina wane over time. through training, community service and employment. (for) ship mann said.

The largest Experience Works program is the Senior and “More of our customers these INNOVATIONS SUCH Community Employment Program. This initiative, are concerned about as robotics and computeri- funded primarily under the Older Americans Act, offers comdays.” overqualification. They zation have altered the job training at government agencies or qualifying nonsay, ‘I won’t be able to fort— Holly Eichmann manufacturing process. profit organizations to eligible persons 55 and older. challenge them, I won’t be Express Employment Younger people may be able with being leadable to pay them.’ ” Professionals more familiar with these EXPERIENCE WORKS serves 17 counties through its Eichmann tells cusers. Others say,‘Just technologies, Sukup said. offices in Mason City and Garner. tomers that while reten“Certainly the ones just “There’s a good flow of people 55 years and older tell me what you tion can be an issue with any age group, the tight econoout of school are more looking for employment,” said Carole Lemon, employmy has left employees with less inclination and fewer used to using computers,” ment and training coordinator for the region. She noted need done and I’ll opportunities to job-hop. “Very few people are looking he said. more than 100 workers are enrolled and at least 40 peoget it done for you.” to jump ship these days.”

Most vendors of new ple are on a waiting list.

Some older workers may also welcome the opportucomputer systems and — Charles Sukup Host agencies help enrollees develop abilities in areas nity to have less responsibility or fewer hours as they manufacturing equipment including computer skills, customer service, mainteSukup Manufacturing transition slowly towards full retirement. offer training courses for nance, retail, office skills and entry-level medical ser“Not everyone wants to be back to the same level they their customers. While vices. “It’s such a huge variety,” Lemon said. were,” Eichmann said. older employees may have a bit more to absorb, workers A small percentage of participants take permanent posiof any age who are willing to learn can become profitions with their host agencies. Most others eventually seek “I DON’T AGREE that anyone is overqualified,” cient with most technologies, Sukup said. full- or part-time employment in the private sector. Lemon Not all companies can offer such extensive on-thesaid Charles Sukup, president of Sukup Manufacturnoted she has a number of qualified job candidates with a job training, however. ing (www. sukup.com) in Sheffield. “If someone is variety of skills, particularly clerical and custodial.

“We do have some companies that say, ‘I don’t have willing and eager to do the job, we’ll try to fit them In addition to pre-employment training, she said, time to train,’ ” Eichmann noted. in.”

Experience Works can in many cases partner with The strong ag economy as well as the company’s employers to provide ongoing training after a particiWHILE MORE EXPERIENCED applicants can be a commitment to introducing new and innovative grain pant is hired. good fit for these companies, Eichmann said older job handling and storage products has led to vigorous “We can offer employers on-the-job experience growth over the past two years. Employment, which was seekers are sometimes less proficient with computers where we pay wages for a certain amount of time. We than their younger counterparts. near 400 early in 2010, stands at about 560. can also assist with the cost of additional classroom For those with basic skills who just need to brush up Company leaders pride themselves on treating training if needed after hire,” she said. or to learn a new system, Express Services offers an employees well, according to Sukup, and have enjoyed Lemon encourages business leaders who consistently array of training modules. strong retention as a result. struggle with filling certain positions to contact Experi“We have complete training and evaluation software on ence Works. She said the organization can sometimes every major computer system out there,” Eichmann said. gear training toward the employer’s needs and can direct DENNIS FOSS, the first employee hired by founder Such training helps prospective employees start a Eugene Sukup, still works for the firm (as purchasing participants with appropriate skills, employment needs new position with confidence while assuring employers or personality types toward businesses where they manager) after 46 years. About 28 percent of the would be a good fit. employees have been with the company 10 or more years. their new hires will have appropriate skills, she said.

Some older workers require more extensive training.

Matching an older worker with the right employer for These longtime employees are valuable both for their North Iowa Area Community College offers a number of the benefit of both is the most satisfying aspect of her own productivity and their ability to help train newer job, Lemon said. resources for employers seeking to hire skilled workers workers, according to Sukup. “The older person “It really makes my week when I get that call: ‘Hey, I or retrain current employees. becomes a real mentor to the younger person.” got a job!’ ” Another good source of skilled older employees is The company uses foremen and supervisors to over-

“

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PAGE 14

IN BUSINESS • SEPTEMBER 2011

toolbox/TECHNOLOGY

WIRED to GROW Maintaining your visual storefront

By TIM ACKARMAN For In Business

hings change quickly on the Internet. Is your business keeping up?

Brad Barber and wife Angie opened Cabin Coffee, a coffee house and eatery in downtown Clear Lake, in December 2002. Although the online world was still relatively new to many, the Barbers made the Internet part of their business strategy from the beginning.

CLtel was just introducing high-speed Internet and was anxious to show its advantages to the community.

The Clear Lake communications firm connected Cabin Coffee to the service and placed Internet jacks strategically throughout the store.

“We had those blue cables behind the counter we could check out to customers,” Barber recalled.

The company also started a website (www.cabincoffeecompany.com) “because people told us we needed a website,” Barber said.

Although the Barbers still own and operate their Clear See TECHNOLOGY, Page 15

T

Social Media Tips: • Don’t underestimate the importance of the Internet, says Eddie May, CEO of Advantage Business Solutions based in Fertile.

• Update online information frequently to attract repeat visitors.

• Maintain a balance between freshness and consistency. Eric Guth, Epsilon Productions in Forest City, advises clients to redesign their websites every three to five years to keep them fresh.

• Be respectful of customers’ time when using text messages or other direct-toconsumer marketing.

— Tim Ackarman

TIM ACKARMAN/For In Business

Eric Guth (right) with Epsilon Productions has helped Brad Barber update the online presence of his Cabin Coffee franchise. Guth said his first task was to freshen the Cabin Coffee website, noting the problem with most small-business websites is they’re out of date.

IN BUSINESS • SEPTEMBER 2011

PAGE 15

TECHNOLOGY: Website needs to be eye-catching, easy to use and create a brand for the business From Page 14 Lake store, they knew early on they had larger ambitions for Cabin Coffee.

“You’ve always got to think of how you’re going to grow,” Barber said.

Within two years the Barbers had opened a second store in Mason City and were nurturing the idea of making Cabin Coffee a franchise.

“A lot of people know how to run a business but they don’t know how to start a business,” Barber said.

Cabin Coffee now has six locations in three states and more than 70 employees. It also offers its fresh-roasted coffee beans and other products online.

other media services.

Guth began by updating the Cabin Coffee website.

“It was time to freshen it up a bit,” he said. “The biggest problem with most small-business websites is they’re not up to date.”

In addition to containing accurate information, Guth said a website needs to be “eyecatching and easy to use.”

Working in conjunction with Webspec Design, a Des Moinesbased company, Guth modernized the website to make it more user-friendly and to better reflect the feel of a Cabin Coffee store.

“You really need to create that brand for whatever your business is,” Barber said.

WHILE GROWING the business has been fun for Barber, updating the company’s online presence to keep pace with that growth has not.

“It was a headache,” Barber said. “We didn’t know much about it. We needed someone who knew what they were doing.”

About a year and a half ago Barber consulted Eric Guth of Epsilon Productions (www.epsilonproductions.com) in Forest City. The company specializes in Web design and

WITH THE INCREASING popularity of smartphones and other mobile devices, a website is now only one aspect of a company’s online presence, according to Guth.

Using GPS technology, many smartphones are able to determine their user’s location in real time. Some Internet search engines, most notably Google, can combine this information with its database of businesses to create a map showing phone users what products and services are available in their area.

TIM ACKARMAN/For In Business

Eddie May, CEO of Advantage Business Solutions (www.absadvantage.com), says website design is important given the increased popularity of mobile devices.

Many company profiles also include online reviews and other information obtained from third-party sources.

While this can help steer customers to a company, Guth noted, a business is at a disadvantage if its information is unavailable, inaccurate or incomplete. Guth is working with Cabin Coffee to be sure

Google offers appropriate information about all of its stores.

FACEBOOK, the social networking site, recently began offering Facebook Places, which takes the GPS concept a step further. By “checking in” with their mobile phones, Facebook users can instantly alert all of their online friends as to their

present location as well as post comments and photos.

Knowing a friend is pleased with a product or service makes it more likely another person will try it, Guth noted.

“There’s that element of trust that carries through from one friend to another,” he said.

The real-time location aspect offers a particular advantage to restaurants, bars and other businesses that serve as gathering places. If friends are already there, others may choose to join them.

Facebook Places also represents a new challenge for businesses, Guth said.

Facebook depends heavily on owners or patrons to provide information about businesses.

When a company has not created a Facebook Place page, entries provided by others are the only thing available on the site.

Again, such information could potentially be inaccurate or incomplete.

“If there are pages out there like that for your business, it’s really not doing you any favors,” Guth said.

UNTIL RECENTLY, Cabin Coffee had a single Facebook See TECHNOLOGY, Page 16

PAGE 16

IN BUSINESS • SEPTEMBER 2011

TECHNOLOGY: Design with mobile phone in mind From 15 page for the entire franchise.

Growth has rendered this strategy obsolete, according to Guth.

He noted the biggest news for the franchise is the recent opening of a new location in La Crosse, Wis. Yet detailed information about the new store isn’t necessarily relevant to every customer.

“People in Iowa and Minnesota might not care,” Guth said.

“The benefit of Facebook is it can be very localized and targeted.”

Cabin Coffee now has a Facebook page for each location as well as for its online store.

“It allows each store to cater to its own local crowd more,” Guth said.

While maintaining a Facebook page may seem like just another thing to do for many owners, Guth pointed out the service is free and is designed to allow information to be updated quickly and easily.

He also noted it’s possible to embed a feed of messages from

Facebook or other social media on a traditional website.

“If you have something exciting going on, you can post it on Facebook or Twitter (a social medium in which users type frequent short messages) and you don’t have to edit your website,” he said.

EDDIE MAY is the CEO of Advantage Business Solutions (www.abs-advantage.com) based in Fertile. The company offers a variety of services to help businesses, including accounting, marketing, human resources, information technology and software design.

While his largest market is for his QuickBooks-compatible ecommerce and municipal billing software packages, May said Web design and mobile marketing solutions are also a big part of his business.

Like Guth, May stresses the importance of keeping a website

up to date. He agrees a Facebook feed can be a useful tool, but also believes website design is important, given the increased popularity of mobile devices.

A design that looks appealing and operates efficiently on a desktop or laptop computer might not work as well on the small screen of a smartphone or other hand-held device, May said.

Technology exists to allow a website to sense what type of device is accessing the site and respond appropriately, but the website must be designed to use this technology.

“You almost make two versions of a website,” May said.

“One should be set up for your large screen and one set up for your mobile device.”

For companies already heavily invested in their large-screen websites, May can often create a comparable platform for mobile devices. It is easier, however, to start with a website suitable for mobile devices and make it look good on a larger screen as well.

“With new websites we really

business, and an action to take.”

May anticipates growth in mobile applications — “apps.”

Many apps already are used as business tools. Examples include spreadsheet apps allowing for inthe-field data entry, medical apps offering physicians handheld access to laboratory data and apps working in conjunction with bar TEXT MESSAGE marketing code scanners to collect credit card information. allows businesses to connect Companies are now beginning with these users, according to to provide apps geared toward May. Companies can use this patrons. service to advise customers “Businesses can build apps about new products, sales or disspecifically targeted for their counts, and other information. customers and offer them Customers can sign up to through their websites,” May receive these marketing messages and can choose to opt out, said.

Whatever online strategies a May explained.

When offering this service, business may utilize, Guth and May encourages clients to keep May encourage business owners their messages focused, relevant to keep them current. and reasonably infrequent.

“You have to maintain a web“You really want to be careful site just like a car, a house or not to overuse it,” he said. anything else,” Guth said.

Messages should always con“You maintain your physical tain something of specific value storefront,” May said. “You need to the customer, May said. “Give to maintain your virtual storethem information about your front.” design it with the mobile phone in mind,” May said.

Text messaging is another popular use for mobile phones.

For many, particularly younger, people, texting has taken the place of phone conversations or email as the preferred means of communication.

IN BUSINESS • SEPTEMBER 2011

PAGE 17

commentaryFINANCE

Avoid these costly payroll errors • Treating employees as contract workers: BusiRSM McGladrey Inc. nesses may decide to pay ne area of governan employee as a “contract ment employment worker” to save payroll that has not taxes and benefit expenses decreased during our cur- such as Unemployment rent economic softness is and Workers the number of investigaCompensators employed by the U.S. tion InsurDepartment of Labor ance.

(DOL) Wage and Hour BusinessDivision. es may conThese investigators are tract with very busy conducting Wage current and Hour audits of busiemployees Davis nesses that may have vioto clean lated (often unknowingly) offices, care for the lawn, one or more employee pay clear the snow or perform requirements for hourly some other regular task in (non-exempt) employees addition to his regular job. under the Fair Labor Stan- In almost all instances dards Act (FLSA). these employees will not Some of the more com- meet the contract labor mon violations are the fol- requirements under FLSA lowing: because they do not have a • Incomplete and inac - legitimate outside business curate payroll records: providing similar services Businesses are required to to other companies, and keep accurate records of they don’t determine their the daily and weekly hours own hours or provide their worked by hourly paid own tools and supplies. employees. These are the As a result, they are subcompany’s proof that each ject to an hourly rate of pay employee is being paid his for this contract work and base rate for every hour for overtime pay if the total worked and being paid 1.5 hours worked from their times the base hourly rate regular job and their extra for all time worked beyond 40 hours during sevenday work weeks.

DOL investigators usually review payroll records for the most recent 24month period and can go back 36 months.

Wage and Hour investigations are stressful and time-consuming to payroll staff, and they most often result in extensive additional pay to any improperly paid employee who worked for the business during the past two years.

By RANDY DAVIS and KEN VIGGERS

O

job combined is more than 40 hours in a work week.

• Not paying for time worked: The DOL considers it worked time when employees voluntarily come to work before their regular start time to get organized, work after their regular quit time to finish a task or stay at their work Viggers station during their lunch break to answer the phone. Travel time when it crosses the employee’s regular scheduled hours of work is worked time even though the employee may be just a passenger. “Voluntary” training time encouraged or provided by the company before or after regularly scheduled hours and related to company business is considered worked time.

• Treating non-exempt employees as though they are exempt: Paying an employee a salary does not make the employee exempt under the FLSA. Neither does giving the employee a

title like office manager or shift supervisor.

Positions are considered exempt under the FLSA due to the nature of the job.

Positions qualify for exempt status only if they are considered highly trained professionals, outside sales persons, managers with hiring and firing authority over two or more individuals, high-level administrators and officers of the business who are primarily involved in nonproduction activities using independent judgment and discretion or are paid more than $100,000 annually. A written job description is the best method for documenting that a particular position meets the exemption requirements.

• Final pay: Most states, including Iowa, require employers to pay employees for all hours worked through their last day of employment and additionally to pay employees for

any previously granted or accrued paid time off (PTO, vacation, personal days, etc.) in a timely manner.

However, sometimes employers decide to not pay for such previously earned paid time off or they may decide to use the final paycheck to deduct amounts due for training expenses, clothing and purchases made through the employer. Such deductions are in violation of the Wage and

Hour pay requirements unless the employer has a previously signed payroll deduction authorization from the employee.

In order to avoid audits it is best to treat employees fairly and to avoid these costly payroll errors.

• Randy Davis is a director and the location leader of the Mason City office of McGladrey.

Contact him at randy.davis @mcgladrey.com.

• Ken Viggers, SPHR, is a director in McGladrey’s performance improvement consult ing group. For more information contact him at ken.viggers @mcgladrey.com.

PAGE 18

IN BUSINESS • SEPTEMBER 2011

commentary/ECONOMIC DEVELOPMENT

Time to transform our regional economy is now

By BRENT WILLETT

improving its economic station in life.

For better or for worse, Editor’s note: Following we don’t have a lot of hisare portions excerpted by toric precedence to direct the author from his our approach relative to address to the Corridor’s other annual meeting July 15: industries efining economic and development — endeavors. whether we are refAs Ed Morerencing that of our globrison of al, national, state or Purdue regional economy — is, it University’s seems so often, the funcCenter for Willett tional equivalent nailing Regional that proverbial Jell-O to a Development points out wall. in his article “What do we Ambiguous and broad- know about ‘how to create based, you could ask 10 a job’?” (2011; edmorrispeople for their definition son.com), the economic of the term and you would development industry is likely receive 10 disparate young and has undergone answers. uneven change at best It’s business attraction. since its birth.

It’s business retention. It’s business expansion. It’s THE FIRST school of workforce development. economic development, It’s site development. It’s which took root in the infrastructure. It’s policy- south in the 1930s, making. It’s advocacy. It’s included industrial develsmall-business consulta- opers who recruited firms. tion. It’s government. It’s The second school of business. focused in the 1960s upon The list stretches into the brokerage of federal perpetuity, it seems, programs and the funneldepending on who is ing of funding to urban doing the defining. districts and blighted neighborhoods.

SO HOW does a regionThe third school al economic development emerged in the 1970s and organization like the caught the moniker North Iowa Corridor Eco- “technology-based economic Development Corp. nomic development” effectively seek, define (whatever that means), and deliver upon a miswhich was supported and sion which corresponds depended on regent and with the needs of the subsequently community communities for which it college talent and pursues development resources. opportunities?

I apologize for the hisWe appreciate and tory lesson, but I have a embrace successes of the point. The three schools past, learn from our mis- of economic development takes and chart a course just outlined — industrial which boldly reorients a recruitment, the leveragregion’s approach to ing of public funding for Executive Director, North Iowa Corridor Economic Development Corp.

D

private projects and asking our higher education institutions to generate jobs out of thin air — are old and mostly irrelevant.

The latest one petered out 30 years ago and we haven’t, as an industry, fully coalesced around a new model.

As a result many leaders, board members, voters, even economic developers in the field clutch these old-line practices to our chest at night and promise to never let them go.

WE HAVE to let them go, especially here and now.

The game of recruitment when fueled primarily or exclusively by incentives — that definition so many cling to like grim death when discussing economic development — is increasingly outmoded, largely unproductive and expensive.

This is not to say we at the Corridor should ignore business attraction pursuits; quite the contrary. It is to say we must conduct such pursuits with wisdom and a plan which corresponds with a comprehensive regional strategy which targets sector-specific opportunities.

But we have had the luxury of slow, stagnant innovation in the definition and pursuit of economic development in many respects because so many of us have rightful license to opine on how best to administer it.

ECONOMIC DEVEL OPMENT means nothing and everything to every-

one at once. Each of you in this room possesses at least some morsel of unique perspective on how jobs ought to best be created in North Iowa that is different than anyone else’s.

Your perspectives are the product of individual life, work and volunteer experiences, external stimuli like media and scholarship, and your personal value system.

On its face your definition of economic development and how to do it seems as impersonal a pursuit as can be, but upon further analysis as we recognize that we are talking about ensuring community progress through individual growth and investment, it is as highly a personal endeavor as political self-identity in a bicameral system.

And as an at once a public and private endeavor, you have license to question, inspire and seek to improve the administration of economic development in North Iowa.

here into a comprehensive regional strategy.

You see, economic developers like me have had both the burden of an endless avalanche of opinion on how best to do the job and the luxury of cherry-picking ideas from thousands of community members and groups and floating like a feather in the wind from one idea or initiative to another, too often influenced by funding, political and lookbusy-to-the-board priorities.

SO WHAT do we do?

We have to commit. Our approach must combine — to borrow another term from Morrison — publicly led, privately supported investments with privately led, publicly supported investments in innovation, marketing and community, business and workforce development.

And to do it we have to foster unremitting collaboration between public and private entities that, candidly, only exist in pockets now.

CORRESPONDINGLY, We cannot keep doing I don’t have a glimmer of a what we have always done and expect different notion on how best to administer automated ecommerce solutions for the financial sector, another professional endeavor under way in North Iowa; and those folks wouldn’t — and shouldn’t — listen to them if I had them. But in the business of the North Iowa Corridor — to our success or our peril — it is incumbent upon us to listen, distill and organize the barrage of thoughts and ideas that come to us about how to create jobs

results. No one in this room is satisfied with North Iowa’s economy today. So we must together begin the complexityladen transformation of our regional economy.

We have got to promote 21st-century skills development here. Support innovation and entrepreneurism and the transfer of ideas into wealth here.

Leverage investments in technology and infrastructure here. Strengthen our leadership programming and regional governance here. To take risks here.

And we have got to create a new narrative about ourselves for the rest of the world.

I know it gets cold in the winter and the cement plant closed, but if we don’t believe in ourselves and restructure the way we discuss our challenges and opportunities, transform ourselves and recast our economy, no one else is going to do it, or worse, someone else will.

I’m looking forward to working for and with each of you.

For more information visit www. northiowacorridor.com.

PAGE 20

IN BUSINESS • SEPTEMBER 2011

toolbox/ADVICE

BIG THINGS: 12 steps to achieving them

By VICKIE MILAZZO, RN, MSN Special to In Business

n today’s world, we’re constantly sabotaged by nonproductive energy- wasters.

There are emails to read.

Facebook statuses to update. Receipts to locate for that already-late expense report. Files to be organized. And on, and on, and on.

These are the easy, albeit often unproductive, tasks that make us feel good.

They may not get you any closer to accomplishing your greater goals, but at least you’ve checked a couple of things off your to-do list.

Unfortunately, this addiction comes at a high price because that cheap checkmark high is guaranteed to frustrate, overwhelm and stress you out in the long term. You feel busier than ever but are accomplishing less of real value.

Working for two hours on a huge project that won’t get finished doesn’t release the same amount of endorphins as cleaning out your inbox. But Are these feel-good tasks the best use of our time?

No, and they often snowball until an entire workday is behind you.

One email leads to two.

After all, it only takes two minutes to fire off an email. Then there are calls to be returned. Two minutes turn into 20 as one item leads to another.

Even if you set them aside once you put your attention to them, these small tasks buzz around in your head and have the

I

potential to distract you for hours. Before you know it, quitting time arrives and you haven’t accomplished a single step toward your most important goals.

By majoring in minor things, we never get to our big commitments. What you engage and focus on is where you will yield results.

Once you’re engaged in accomplishing the “Big Things,” you’ll approach routine matters with lasersharp focus, quickly deleting, delegating and experiencing fewer distractions.

More important, your creativity and productivity catch fire, and the momentum keeps you pumped. You’ll glide through your day full of confidence and satisfaction from achieving significant milestones.

Here are 12 easy steps to help you stop doing what feels good and start doing what matters: 1. Define three Big Things. Identify three Big Things that connect to your passionate vision, then choose one to schedule your day around.

For example, your Big Things might be to get promoted or achieve financial security. So today you might agree to take on a high-profile work project in order to put you in the running for that promotion.

2. Set a target date for each of your Big Things and begin working steadi ly toward achieving each of them.

Challenge your plan of action. Often, we take a tiny step toward achieving a Big Thing to save us from having to make a big commitment and to ward off feeling guilty about not going after our passions.

Constantly ask yourself: Am I really going for my goal all the way? Or if it’s too tough, will I quit?

Make sure your plan of action is doable. Assess each step when you are taking it and make sure it’s the right thing for you to be engaged in at that time.”

3. Turn off cyberspace.

There’s no greater blow to productivity than breaking your concentration to reply to an email as soon as it hits your inbox. Remember, no award will be handed out at the end of the day for the person who responded to the most emails the fastest. If you’re doing nothing but responding to emails, you’re bouncing around like a pinball.

It’s also important to keep in mind that the purpose of email is not to generate more email. Unless a

response is necessary in order for the sender to move ahead on a task or project, it’s OK to let them have the last word.

If you can’t bring yourself to close your email box, at least turn off the sound alert and pop-ups so you won’t have the annoying sound and flash notification every time a potential time-waster drops out of cyberspace and into your mental space.

4. Turn off the TV. Every hour you sit in front of the TV you’re accomplishing nothing. Every second of that time is irretrievably lost. If you’re struggling to let go of this feel-good addiction, start by turning your TV off one day or one hour a week.

Instead, spend that time working on your Big Thing.

5. Tame the social media beast. Social media can be just as time consuming as watching TV. It’s fun to read the details of associates’ lives and to see the photos they’ve posted on Facebook. It

makes us feel good when they “like” something we’ve posted or when we’re tagged in one of their photos. That’s one reason social media is so addicting — it’s like experiencing human hugs all day long.

Now that you understand why you like it, it’s time to tame the beast.

Social media can quickly move from a social communication to an obsessive compulsive disorder. You can get caught up in all of the things to do there — the games and other ancillary applications.

Let’s face it, clicking your mouse to get points to

build a hen house for your farm or sending someone virtual hugs, flowers or groceries seems like a crazy waste of time.

Does “I got a new llama for my herd today” really sound better to you than “I made three sales calls on new clients”?

Social media is a great thing and can be a valuable tool. It’s changing the way we connect and communicate. Just make sure you’re using it to advance relationships and meaningful engagement.

6. Set aside sacred See BIG THINGS, Page 21

IN BUSINESS • SEPTEMBER 2011

PAGE 21

toolbox/ADVICE

Dealing with smartphones, other mobile devices at work

By DEBORAH M. TODD

book or even peeking at Xrated sites just about anywhere. s smartphones, iPads and Including at work. other portable devices A survey on employees’ allow consumers to liter- Web-surfing habits found 52 ally join themselves at the hip percent of the 2,500 people to the Internet, it’s increasingly queried were pretty sure others common to catch people use their personal devices to checking email, updating Face- look for new jobs and 42 perScripps Howard News Service

A

cent thought people use them to look at porn.

Only 3 percent admitted to watching porn themselves while at work, but 43 percent had watched online videos such as sports events, viral videos and even full-length feature films, according to the survey

conducted by Harris Interactive on behalf of video streaming company Qumu of San Bruno, Calif.

Considering that 63 million Americans were smartphone users as of February — a 60 percent increase over 12 months, according to digital

marketing research company comScore — the problem is only poised to grow.

With a new understanding of mobile technologies as weapons of mass distraction, corporate leaders are rushing to update employee policy manuSee SMARTPHONES, Page 24

BIG THINGS: Successful people make big commitments and don’t settle for small-time achievements From Page 20 “momentum time.” Momentum time is the only way you can stop being a slave to petty distractions. It’s the precious time you are able to set aside for yourself each day to work uninterrupted toward achieving one of your Big Things. To carve out time, examine every activity and decide how to eliminate it, delegate it, hire it out or do it faster.

If part of your day is rarely interrupted (such as early morning or late evening), reserve it for momentum time. Keep your momentum time sacred. Use phrases such as, “I’ll be available in one hour.

What time after that works best?”

Start your day with a two-hour uninterrupted chunk, then gradually add more two-hour momentum sessions each day.

Claim your momentum time and you’ll find those lost hours you’ve been looking for.”

rupt the interrupter, you’ll get a whole lot more done.

8. Alternate momentum time with “weed pulling.” Miscellaneous routine tasks are like weeds in your garden: we all have them and no matter how often we get rid of them they never go away. Yet they do have to be handled, and pulling a few weeds can provide a restorative break from more intensive work.

Separate tasks into two categories— “Big Things” and “Weeds.” After each momentum session, devote 15-30 minutes to weed pulling — handling email, phone calls, and other minor tasks.

Don’t try to tackle all your weeds at once. Prioritize. Set aside a three-hour block periodically to do the deep weeding and organizing. But if you just need a five-minute break from your Big Thing, don’t tackle the weeds. They will only 7. Interrupt the interrupters. Statisti- distract. Use those five minutes to refresh cally, you’re interrupted every seven min- your energy with a stretch or a bit of utes in the workplace. Today we’re bom- nourishment, raw nuts or a cup of barded by a plethora of interruptions that healthy green tea we invite into our mental space — email 9. Focus on one Big Thing at a time. popup notifications, Facebook postings, When you engage in too much at once, text messages, Twitter streams and you risk finishing nothing. blinking message lights.

There’s only one person responsible for 10 . Use technology to your advantage. interrupting the work you’re doing and With the advancements in smartphones keeping you from getting to your Big Thing. That person is probably responsi- and the development of iPads and miniature-sized laptops, we can stay connectble for more interruptions than anyone ed and work from almost anywhere. The else in your home or office. Who is the responsible party? That’s right — you. It’s trick is recognizing when you are using these technologies to your advantage and more important than ever to work with focus and a consciousness about whether when they are distracting you from better things. you’re on or off focus. If you can inter-

11. Let go of bad ideas. Successful women can be successful at many things, so it is tempting to go after all kinds of ideas, even ones that are not so great.

goals. Surround yourself with friends, family and peers who support your vision.

Successful people make big commitments. They go after big goals. As I like to 12. Safeguard your momentum. Accept say, they engage big. They don’t settle for that you won’t please everyone. Someone the small-time achievements that lead to is bound to be unhappy about the the feel-good addiction. They go after changes you make to focus on your Big their Big Things.

Things.

Put that to-do list away and start A friend might get upset because you thinking about the Big Things you want can no longer meet for lunch on Wednes- to achieve.” days. Your spouse might complain About the Author: Vickie Milazzo, RN, MSN, JD, is author of “Wicked because you won’t run his errands on a Success Is Inside Every Woman (Wiley, 2011, $21.95, weekday.

WickedSuccess.com). She owns Vickie Milazzo Institute, an education company she founded in 1982.

They’ll get over it. Stay true to your

IN BUSINESS • SEPTEMBER 2011

PAGE 23

toolbox/TRENDS

Small-business owners are getting more pessimistic

By JOYCE M. ROSENBERG

piled from a survey of small business owners. Fewer survey participants hen the country recovered said their sales were rising, and more from recessions in the past, said sales were falling, compared small businesses were usu- with July. ally the first companies to start hirThe outlook for the future isn’t ing. But smaller companies are so good. Thirty-four percent of owners pessimistic now that they’re not surveyed said they expect their sales taking on their historical leadership to fall in the next three months. position.

Twenty-one percent expected sales The National Federation of Inde- to rise and 45 percent expected them pendent Business, which issues a to be unchanged. monthly report on small business Those aren’t the kind of numbers optimism, said “confidence in the that inspire confidence. William future of the economy crashed in Dunkelberg, the NFIB’s chief econoAugust.” The group’s optimism mist, noted that employers are index — which it wryly called the unlikely to hire if they’re unsure that Small Business Pessimism index — they’ll have the sales to justify a was down for the sixth straight larger staff. month.

“As long as you can expect the “The small business half of the new employee to pay for him or hereconomy is still in the ‘tank’,” the self, you’ll hire them,” Dunkelberg NFIB said in its report. said in an interview.

The government’s report that THE BIGGEST PROBLEM: SALES employers added no new jobs in The NFIB optimism index is com- August shows that small businesses AP Business Writer

W

are hesitant to take chances. About 40 percent of the companies surveyed for the government’s monthly job creation report have fewer than 20 employees. And Dunkelberg noted that the Commerce Department reported that retail sales were unchanged during August. Numbers like that also won’t encourage small businesses to hire.

MODEST HIRING PLANS — BUT NOT ENOUGH TO HELP The NFIB said 11 percent of the owners it surveyed in August planned to create jobs in the next three months. Twelve percent plan to cut jobs, and 77 plan no changes.

The group said those readings are at the low levels seen during a recession. The group predicted that the “unemployment rate could ease a fraction or remain unchanged” at 9.1 percent.

The government’s weekly count of the number of people who applied

for unemployment benefits also points to little change in the unemployment rate. The number rose to 428,000 in the week ended Sept. 10. That was the highest level in three months. Economists believe the number of applications needs to fall to around 375,000 and stay there before the unemployment rate can drop significantly.

See PESSIMISM, Page 24

PAGE 24

IN BUSINESS • SEPTEMBER 2011

toolbox/ TECH

PESSIMISM: Lacking confidence in government

Cybersecurity battles complicated

By DEBORAH M. TODD

May, purging the names, account numbers and email addresses of irst they came for the video 360,000 Citibank customers. games, launching an attack in They came for the government April that siphoned millions organizations in June, attacking the of users’ personal information from U.S. Senate and the International Sony’s PlayStation Network that Monetary Fund over the course of a shut it down for weeks. single week.

Then they came for the banks in The question is: Are hackers Scripps Howard News Service

F

coming for your organization’s system next? If they haven’t already gained access, security experts say, there’s no doubt they’re trying.

“There’s certainly a fair amount of consternation and fear,” said Kevin Richards, president of the Information Systems Security See CYBERSECURITY, Page 27

SMARTPHONES: Monitor mobile devices to avoid liability From Page 21 als as tech firms scramble to lead innovation in mobile-filtering software.

Companies that long ago invested in blocking and firewall technologies for personal computers will likely seek out similar protections for mobile technologies soon, according to Martin Giglio, communications practice leader for the Pittsburgh office of human resources consulting firm Buck Consultants.

“The growth of personal devices, especially things like smartphones increasing in numbers, has basically become a fact of life.

Iphones and iPads are issued by companies to help employees do their jobs better, and it’s reasonable to expect they’re also using them for nonworkrelated actions to some extent,” he said.

One immediate concern that corporations will address is decreased bandwidth, he said. Lost productivity while an employee watches cat videos on YouTube is one thing, but companies can see a decline in overall productivity if an individual’s surfing affects bandwidth in an entire office.

ContentWatch Inc., a Salt Lake City-based company specializing in online

at porn, I just don’t want them doing it at work,’ ” he said. “It comes down to if The growth of personal devices, espean employer has a sense of how often employees cially things like smartphones increasing in waste time.” numbers, has basically become a fact of life.”

But beyond use of time, employers should monitor — Martin Giglio mobile devices for content Buck Consultants, a human resources consulting firm to avoid liability in the event of illegal activity, he content filtering and drop restrictions on said. parental control software devices at the end of the “Imagine if I buy an such as NetNanny, is workday. employee an iPad and working on technology Despite the increase in (he’s) on a plane watching that allows corporations to mobile devices in the work- child pornography. That’s control mobile devices as place, not all businesses are a felony. You’ve provided a easily as they control office focused on the issue. person with a device to desktops.

Warner, who has spoken commit a felony,” he said.

The company is set to to several companies, said “I don’t know where unveil a mobile security only “conscientious that’s going to go in the suite and Internet filtering employers” had shown future, but companies are for mobile devices during interest in the technology going to want to take the International Cellular so far. action for liability reaTelecommunications “I’ve heard some comsons.”

Industry Association’s pany leaders say, ‘I don’t Reach Deborah M. Todd at dtodd@postgazette.com.

Wireless trade show in care if my employees look May 2012.

ContentWatch CEO Russ Warner said the goal is to allow companies to apply content filters similar to those used in corporate networks to Android and iOS mobile devices distributed to employees.

In addition to restricting sites, the technology will block access to certain mobile applications, restrict the time an employee uses a certain site and can even be set to

“

From Page 23 WHAT’S BEHIND IT ALL? The crash in the housing market, which eventually set off the 2008 financial crisis, was seen as the biggest cause of the recession. Dunkelberg said the problem now is a lack of confidence in government.

When Standard & Poor’s lowered the government’s credit rating in early August, it cited what it believed to be the inability of Congress to work on cutting the federal budget and deficit.

Dunkelberg said consumers, who ultimately drive sales, have lost their confidence in the government as well. He noted that nine out of 10 people have jobs — but

they’re saving rather money than spending it because they’re worried about the future.

“If Washington did something that made those nine out of 10 confident, they’d spend more,” he said, and noted that “it’s not just the economy, it’s government” that worries people.

Business owners also appear to be lacking in confidence in the government. According to the NFIB survey, only 7 percent of owners expect business conditions to be better six months from now. Forty-one percent expect them to be worse, and 52 percent expect them to be unchanged.

IN BUSINESS • SEPTEMBER 2011

PAGE 25

Bad bosses often lack training, trust, resources

By PETER COUTURE Scripps Howard News Service

ayne Hochwarter was 20 and working in a Chicago grocery store, where it seemed the bosses never lasted too long. A seed was planted.

Now Hochwarter is the Florida State University’s Jim Moran Professor of Business Administration, and he’s made a career of studying the relationship between supervisor and employee: interpersonal dynamics.

His latest research shows that employees — at least those of us fortunate enough to have jobs — aren’t happy with our bosses. We may not be plotting to kill them like the schemers in the movie “Horrible Bosses,” but a lot of us wouldn’t go out of our way to be friendly to them, either.

Hochwarter surveyed more than 400 mid-level employees from various industries.

Among his findings: 42 percent said their boss was concerned more with saving his or her job than with employee development. Run into the boss outside the office? More than 40 percent said they wouldn’t say hello.

“The real rub on a lot of this stuff is that people can’t leave — I mean, they’ve got nowhere to go,” Hochwarter said of the

W

Adjusting to a friend becoming your boss Marty’s your best buddy at work. Suddenly, management announces a big promotion in your unit: Surprise! Marty’s now your boss.

You think, “I’m just as qualified as Marty. And I’ve been here longer. Why didn’t I get the promotion? Besides, I’ve lost my best work friend.”

What to do?

First, take a few moments to realize that you’re not the only one affected. It’s a big adjustment for the entire group.

Second, how is Marty acting? Is he still the same friendly, easy-to-talk-to guy he was before, or is he so busy he doesn’t have time to even say “hi”? Has the newfound power gone to his head? Does he have new work friends now based on his position?

Is he caught up in some political jockeying that you don’t know about? Any of these situations are possible, and how you react can save both your job and your friendship. Here are some tips to help you economic reality facing unhappy workers.

Hochwarter wants people to consider something else: The boss doesn’t always have the best tools. Often, bosses haven’t been trained how to manage people, or those they do supervise aren’t great employees, either.

“We take people and we put them in these situations and we give them the employee handbook, and they learn how many vacation days Tony can have, and they need to know what happens when Sally gets

through: • Give yourself some time to grieve. Even if Marty goes out of his way to remain friendly and approachable, your workplace relationship has changed. You’ll never have that peer-to-peer, relaxed, can-tell-him-anything feeling with Marty again. It will be a different type of friendship.

• Think about the situation from Marty’s point of view. The promotion is probably a big opportunity for him. Let him enjoy his success and show your support by congratulating him. Also, Marty’s no fool. He knows the work vibe has changed. Take a while and see how he handles relationships with you.

• Be respectful. Yes, he is now your superior.

• Keep your eyes open for opportunities to advance your career on any new project Marty may be initiating. He knows you well. If you remain in his good graces, you may have a place on his new team.

— Scripps Howard News Service

pregnant, but the whole notion of humanity ... we don’t teach managers that,” he said.

The “Horrible Bosses” film, Hochwarter said, “is not anything I’m particularly pleased about. ... I feel that most bosses are pretty darn good and they’re trying hard in an environment that’s not as warm and fuzzy as it used to be.

“Another twist on this: A lot of bosses don’t have much to work with. You know the resources they have left, the people they have left, are fewer. And in many cases, the

employees they have are not as good as they used to be — for a lot of different reasons.”

Hochwarter shared other observations in a Q-and-A: Q. What’s a good boss? A bad boss?

A. You could list a thousand things that are important, and of course they’re different for every person. Some people want a boss who’s hands-on.

Other people like a boss who gets lost. ...

There are two real drivers in a lot of these (employeremployee) relationships: com-

munications and trust. People like to know what’s going on.

They like to know news. They like to have information as a resource available and deal with things good or bad. And the trust part is you kind of have this assumption that the person who is responsible for a lot of your work life ... is going to take care of you to the extent that he or she can.

Q. When you see portrayals of bosses in movies and TV shows — “The Office,” for example — how much realism do you see there?

A. That kind of stuff, or course, tends to be exaggerated. ... However, what we are seeing, not in my research, but there’s some harsh crap — bullying — more of that kind of stuff going on. ...

Q. You say the current environment is also tougher on bosses. Are bosses being forced into being the bad guy?

A. I don’t think it’s quite that bad. I think they have considerable input into how a person does a job; how well they do a job; the resources they have to do their job; the level of competency. ... Some of the layoff things are just the way it is. ... Maybe their whole unit got caught or it’s the last person in — that kind of stuff.

It’s not always performancerelated.

IN BUSINESS • SEPTEMBER 2011

he Consumer Federation of America offers 10 tips for protecting yourself from getting ripped off: 1. Before buying from unfamiliar companies, check with state or local consumer agencies, the Better Business Bureau and online complaint forums to see if other people have reported problems.

2. When hiring contractors or other professionals, ask your state or local consumer agency if they must be licensed or registered and

T 10 TIPS ... ... to protect yourself from scams

PAGE 27

how you can confirm that they have complied.

3. Pay with a credit card so you can dispute the charges if you don’t get what you were promised.

4. Use gift cards, gift certificates and coupons promptly.

5. Don’t pay in full upfront. If you are asked for a deposit, pay a small amount.

6. Recognize the danger signs of fraud, such as requests to wire money, pressure to act immediately, promises that you can win or make

money easily if you pay a fee in advance and offers to recover money that you’ve lost to scammers, for a fee.

7. Get all promises in writing.

Oral agreements are hard to prove.

8. If you are struggling to pay bills, try to work out a solution directly with your creditors. If you need help, a nonprofit credit counseling service can advise you. To find one, contact the National Foundation for Credit Counseling at www.nfcc.org or 800-388-2227.

9. Debt collectors must follow state and federal laws which prohibit them from making calls during certain hours or with annoying frequency. For more information on debtors’ rights, visit www.ftc.gov and click “Debt Collection” under the “Quick Finder” section of the home page.

10. If you aren’t sure what your rights are or you think that something sounds fishy, ask your state or local consumer agency for advice.

— Scripps Howard News Service

CYBERSECURITY: Even most comprehensive network security will be hacked at some point From Page 24 Association International, headquartered in Portland, Ore. “This is something that’s a very real economic issue, and organizations are struggling with that.”

A recent study of security professionals by the Ponemon Institute in Michigan said 90 percent of professionals at large companies in the United States, Britain, France and Germany had seen at least one breach in the past year and that 59 percent had two or more, according to a New York Times report.

ERIC IRVIN, a Houston-based security analyst with Alert Logic Inc., said it’s time to fight fire with fire when it comes to cyberattacks.

He theorizes that security experts are held back from catching the bad guys by ethical obligations imposed by security certification organizations such as ISSA, in addition to being bound by laws and their own moral reservations.

He presented his idea under the provocative title, “Nice Guys Finish Last — Why Doing the Right Thing Sucks,” at last month’s BSidesPittsburgh computer security conference in Pittsburgh.

Richards defended the security association’s sixpoint code of ethics, which

tells professionals to comply with the law, conduct duties with diligence and honesty, promote current best practices, maintain confidentiality, avoid conflicts of interest and avoid intentionally damaging an individual or company’s reputation.

“We would never say it’s OK to break laws,” he said.

“That’s talk of vigilantism, which has never worked in any construct. ” He added security experts should focus on containing the problem, collecting evidence and turning it over to law enforcement agents to push for prosecution.

EVEN IF cybersecurity were as simple as hacking the hackers, Irvin noted that innocent bystanders would most likely take the hits because hackers use other people’s systems to do their dirty work.

Marty Lindner, principal engineer for the Cert Program at Carnegie Mellon University in Pittsburgh, said there were roadblocks to catching hackers internationally.

Last month’s arrest of a British teenager linked to the group Lulz Security — which claimed responsibility for hacking the U.S. Senate and Arizona’s Department of Public Safety — resulted from a

joint effort between the FBI and Scotland Yard. But prosecution could hit a dead end if the source was in a country without clear cyberlaws.

“Other countries don’t have laws like we do,” Lindner said, and hacking is “not a crime. If it’s not a crime, then there’s nothing we can do about it.”

countries as well as the United States, Canada and other countries — is the closest thing to a cohesive international law.

“The problem is the law dates back to the ’80s and only deals with a limited number of attacks and exploits. It’s not a complete legal response,” Baker said.

STEWART BAKER, former National Security Agency general counsel and partner at the law firm Steptoe & Johnson, said most cybercrimes are committed on compromised machines inside the United States but that many attacks come from China and some Eastern European countries.

He said the Council of Europe’s Convention on Cybercrime — which applies a single cyberlaw to all Council of Europe

BEYOND HACKING the hackers or waiting for international laws to adapt to the changing times, security experts should encourage organizations to reinforce and update their current security methods, regularly monitor for suspicious activities and purge their systems and servers of unnecessary software applications, Richards said.

“When people enter my network, what applications and technologies am

I expecting them to see? Is my network configured with that environment to allow only that kind of transaction? Start weaning out things you don’t need,” he said.

But even the most comprehensive network security available today will be hacked at some point, said Karl Vokman, chief tech-

nology officer of Chicagobased information technology company SRV Network Inc. “It doesn’t matter that we’re making our best effort,” Vokman said. “It’s like Fort Knox. Someone’s going to break into it eventually.”

Reach Deborah M. Todd at dtodd@postgazette.com.