fxyerierw:E BrooGbancl
As a result of your vote of confidence, we have been awarded the 2004 Conswner Choice #1 Award from the National Research Corporation for the seventh year in a row. W.:: humbly thank you for your confidence in our ability to provice the finest healthcare in the region. Our thanks also to the hundreds of specialists, physicians,
nurses, technologistsar_d ~ppon,5tc.ff:o ..A-::> proY-'ide un_:;::ualleled service to our pari e. ts. When you chooEe an.. of th e IT: c -u ::oli:rus ::di.::a._ Center hospitals, yoL recti.re nati.: rd.y -=·g:n.i::cd = . Bur then you alre3dy b1ew rb.t - ;cvon y= in a re-v.: Why would you go ;:nyw.::ere else'
~=~ Carolinas Medical Center www.carolinashealthcare.org CAROLINAS MEDICAL CENTER • CAROLINAS MEDICAL CHITE ~J\1ERCc • CAROLINAS MEDICAL CENTER-PINEVILLE • CAROLINAS MEDIC<\.L ::::ENTER-lfl'.vT~S T:'
f
a
e
22
r
u
t
s
e
cover story
Southern Shows, Inc. Joan Zmmenman recalls, "When we began this adventure, we had no money. r o
~· =.roa-,d
no experi-
ence. But, we did offer a unique opportunity to connect businesses with an inere:led a..Jdience." From humble beginnings, Southern Shows has become one of the most prestrEio.Js •:on; _ne - show producers in the nation.The company has grown exponentially; the family behind f: hcs e~<erc=d its reach to twelve different cities encompassing twenty different shows. Its sphere of consume - n-luence has yet to be rivaled on the trade show :ircuit.
16 Poyne r & Sp ruill The Charlotte office of this firm has grown
with some surprising twists, allowing its team of 36 lawyers to develop and forge their own
·•
identity Being responsive to client needs has resulted in a remarkable depth in a number of specialties, while its resources allow it to handle a wide variety of legal matters, including all things pertaning to closely held businesses.
28 PRstore Entrepreneur magazine calls it one of the year's hottest new franchises; PR Week put them on the front page. PRstore combines big services, little prices, and a dedication to small business in providing retail PR services. Mike Butler points out, "The small business owner is not longer an afterthought; he is the reason we exist."
publisher's post
4
employers biz
6
Legislative and Regulatmy High-igb.:.s for AEa Employers
on top
8
biz digest
biz outlook
42
Social Security: Future Benefits, Present Costs
biz resource gu ide
34
14
The Role of Preventive Services _n Controlling Health Care Cc5ts
44
NouvEON Technology Partners
c ·.
~
.J..
NowEON represents a"new era" in consulting servces, taking pride in having consultants who work so well that they can't be distinguished from the client's employees. Proof of their success lies in their profitability as well as their"referenceability"- whether they are 40 or 400 employees. the mindset of their employee-owned network is fundamental.
fer::· ruary 2005
on t:he cover:
Dc:vid]. Zimmerman, President; joan H. Zimmerman, CEO; Robert Zimmerman, Chairman; of Southern Shows, Inc.
38 WXNC-AM 1060 This transfonmed radio station, self-dubbed the ''Conversation Staton;' intends to compete with talk radio stations around the area that focus on politics, policy and comedy It is exactly what the Chariotte market was missing in the Geddings' words,' We're trying to give people infonmaton that's really relevant to everycay life, and not just talk politiCS:'
Photography by Way ne Morris.
cliareateriotte
iz
www.greate rch ax Ictte biz. com
One employee benefit
that benefits everyone.
orth Carolina's National College Savings Progra m is a tate-sponsored 529 plan that makes saving for college easy for everyone. With no set-up fee:s and Lttle effort, you can add va lue to your employee benefits without adding administrative cos-s fo your company. To learn more, please visit our website at CFf~C.org/Savings or call 800-600-3453.
ŠCollege Foundation, Inc. 2005
Helping You Plan, Apply, and Pay for College
[publisher's
stJ
Kudos to Those Who Have Made Charlotte 4th!
clraflotte
WI
IZ
February 2005
In the seventh annual"America's 50 Hottest Cities" ranking pub-
Volume 6 • Issue 2
lished in the January 2005 edition of Expansion Management
Publisher
magazine, the Charlotte region was ranked the fourth "hottest city"
John Paul Galles jgalles@greatercharlottebiz.com
for executives of compa nies actively looking to expand or relocate their facilities within the next one to three years. The ranking was based on a survey of site co nsultants whose busine ss it is to help companies select the best locations for future expansions taking
Associate Publisher/Editor Mary! A La ne
into consideration such factors as business climate, work fo rce qual-
maryl.a.lane@greatercharlottebiz.com
ity, operating costs, incentive programs, and the ease of working
Contributing Editor
with local political and economic development officials.
Susanne Deitzel
The survey points up the Hot Cities that have a built-in advantage when companies look to site a new manufacturing or distribution facility or headquarters operation, being well-prepared to
Creative Director/ Asst. Editor
attract and reta in businesses because they have "logistical advantages, a high quality of life, available workforce, and a favorable tax and political climate." It is a well-deserved tes:ament to our economic development efforts on many levels!
Sean Farrow sfarrow@greatercharlottebiz.com
Kudos to the Charlotte Regional Partnership which, since 1992, has had the main objective of attracting busine ss expansions and relocations into the region, and kudos to their "Ch3rlotte
Account Executives
USA" brand ing ca mpaign . Being ranked so highly by promin ent relocation specialists is ce rtainly
Bill Lee blee@greatercharlottebiz.com
one indicator that they are getting their point across! Kudos to the economic development thinkers for identifying the importance of growth from with in our market clusters- building on those resources that are already somewhat strong in our
Amy Jo Robinson arobinson@greatercharlottebiz.com
region, and that have been determined to be increasingly important to our economy, both nation-
Contributing Writers
ally and internationally. Such clusters include financial services, textiles, automotive, machine
Ellison Clary Susanne Deitzel Heather Head Lindsay LeCorchick
manufacturing, medical equipment manufacturing, plastics and pharmaceutical manufacturing. And kudos to those that are concerned with sufficient resources to encourage entrepreneurialism within area enterprises, as well as to support start-ups and growing businesses within the region. Oftentimes, these "homegrown" entities have symbiotic relationships with the larger busi ness attracted to the region, supplying parts or performing necessary manufacturing services, and
Contributing Photographer
are therefore impacted indirectly by the success or failure of higher level economic development
Wayne Morris
activities. These entities need sufficient support to rework product lines and manufacturing and retrain employees to adjust to the changing needs of the economy. We are fortunate in the Charlotte region to have a wealth of vehicles through which to perform economic development activity. In addition to the larger focus of the Charlotte Regional Partnersh ip, we have the more targeted resources of UNC Charlotte, the UNCC Research Institute, CPCC, the new BizHub and area chambers and economic developers. The breadth of these entities reflects different focuses and mechanisms for directing resources toward econom ic development in a fairly sophisticated fashion, rather than relying on a cookie-cutter approach . It has not been easy to stay focused on growth, especially during these past few periods of economic slowdown when concerns turn more to business survival and job security. The natural
Galles Communications Group, Inc. 560 I 77 Center Drive • Suite 250 Charlotte, NC 28217-0736 704-676-5850 Phone • 704-676-5853 Fax www.greatercharlottebiz.com Press releases and other news-related information, please
fax
to the attention of"Editor" or e-mail:
editor@greatercharlottebiz.com .
Editorial or advertising inquiries, please call or fax at the numbers above or e-mail: info@greatercharlottebiz.com .
Subscription inquiries or change of address, please call
or fax at the numbers above or visit our Web site: www.greatercharlottebiz..com.
inclination is to become more fiscally conservative and less likely to risk. Initiatives that enhance future development and economic incentives fall from favor. Success in economic development, though, requires a certain level of investment and a continued commitment to entrepreneurial initiatives and ince ntives, mostly through not-so-com-
© Copyright 2005 by Galles Communications Group. Inc. All rights reserved. The information contained herein has been obtained from sources believed to be reliable. However, Galles Communications Group. Inc. makes no warranty to the accuracy or reliability of this information .
fortable times. It requires a certain measure of risk-taking, at least to the extent that economic development efforts are not immediately gratifying or necessarily proportional to the resources
Products named in these pages are trade names or trademarks of their respective companies.Views expressed herein are not necessarily those of
Greater Charlotte Biz
expended. It is important for that reason to effectively track the value of our investments and
or Galles Communications Group. Inc. No part of this
measure their success.
publication may be reproduced or transmitted in any form or by any means without written permission from
If this national ranking is any indicator, we must be doing something right. It reaffirms the value of the different organizations we have in place to focus on our economic development needs. It reminds us that, in addition to being critical of our apportionment of economic development resources, we need to be just as celebratory of our achievements in that regard . We have a great many vehicles and resources to focus on the attraction of new business, the development of market clusters and the support of entrepreneurial activities here in the Charlotte region. Let's get busy on making Charlotte really hot!
4
february 2005
iz
the publisher. For reprints call704-676-5850 x l 02. Greater Charlotte Biz ( ISSN pending) is published monthly by Galles Communications Group. Inc., 560 I 77 Center Dr., Ste. 250, Charlotte, NC 28217-0736.Telephone: 704-676-5850. Fax: 704-676-5853 . Subscription rate is $24 for one year. Periodicals postage pending at Charlotte. N .C., and additional mailing offices. POSTMASTER: Send address changes to Greater Charlotte Biz, 560 I 77 Center Dr.,
Ste. 2SO. Charlotte, NC 28217-0736 .
www.g r e ate r c h a r Iott e b i z . c o m
In the marketplace, keeping your business "top-of-mind" is the most important thing you can do... The Queen's Cup Steeplechase provides a unique opportunity for you to do just that - in a most-unforgettable way. No other sporting event offers you a day of more variety or quality of entertainment. Reserve a Corporate Tent, a Lawn Box or even sponsor a race yourself and spread your banner across the entire race course. For more information, please call
YEARS
(704) 843-7070 or visit our website,
www.queenscup.org. In addition to the five thundering thoroughbred steeplechase horse races, you will enjoy... • Jack Russell Terrier Races • Hat Contest • Tailgate Contest • After the Last Race, the Fun Continues with the Hotwalk Party and Live Band • Children's Pony Rides • Charity Raffle with Valuable Prizes
,
Join us for all the fun and exdtement at the tenth annual running of The Queen's Cup Steeplechase, April 30, 2005.
•
.
.
lS lS suoli«:_J!!Jufar event we seJ
out ;en; quid/j.5 o:Jfease, resefT/8
Races RunExclusivelyfor theBenefitof
~CATAWBA
your cjent, £awn13ox or;P5£ toclay! ,....~~~-~S~~!!\! RACE
PARTNERS
Presented by:
SONITROL TH£ V£RiflEO l.EAO(R tN EUCTitONIC SECURITY
~A--....,
VISA.
-.,~?
WE ARE PROFESSIONA L GR ADE:
·------· BRIGADO O N
ComnkHttty. Tetevision..
Legislative and Regulatory Highlights for Area Employees Five Myths About Social Security
With so much discussion in the news about the solvency of the Social Security program , and what reforms may be necessary, it is helpful to identify some common myths about Social Security Myth #I: There is no Social Security trust fund.
People have heard this assertion so often that they will be surprised to learn that there really is a Social Security uust fund that collects our payroll taxes and invests the surplus. Its called the Old-Age and Survivors Insurance and Disability Insurance Trust Fund. Three-quarters of the money that is collected in Social Security taxes goes right out the door again in the fonn of benefits to Social Security recipients. The surplus that isn't needed to pay benefits is loaned to the federal government to pay for other programs. In return for this loan, the trust fund gets LOUs in the form of special-issue, interest-paying Treasury bonds. The interest is not paid in cash, however; the Treasury department issues the fund additional bonds for the interest amount. Last year, the fund was credited with $80 billion in interest; the total value of the securities is about $1.5 trillion. Critics often deride these bonds as "a bookkeeping entry" or a fiction, but they're real obligations of the U.S. government, according to Steve Goss, Social Securitys chief actuary In the past, they've been cashed in when Social Security or its sister program, Medicare, temporarily ran low on funds. The last time was in the early 1980s. The problem, of course, is that the government now owes the trust fund so much money, and relies on its surplus so heavily, that real problems will be created when it comes Lime to cash in those IOUs. Uncle Sam is going to need to find another source of income to replace the surplus, plus come up with cash to pay the bonds it has already issued. 6
february 2005
Myth #2: Congress doesn't pay into Social Security, so it doesn't care about fixing the crisis.
&fore 1984, U.S. rep rese ntati v~s and senators like all other federal empl oye~ were not covered by Social Securi ty and did not have to pay into the system. Congress p.1ssecl a law in 1983 that took effect the following year requiring all federal employees hired after 1984 to participate in the system. The myth is often accompanied by the assertion that Congress participates in a private pension scheme that pays them their salaries for the rest of their lives. ln fact, the Civil Service Retirement System, which covered federal employees in earlier decades, was closed to new participants after 1983. The pensions available under this old system depend on the federal workers pay and tenure with the government, but by law cannot exceed 80 percent of the final years pay &nefits paid under the system are reduced by the amount of Social Security the participant receives. Myth #3: Age 65 was picked as the retirement age because when Social Security was started in the 1930s, most people were dead by then.
It is true that infant and child mortality rates were high during the 1930s; iowever people who survived childhood had an average life expectancy rate of at least 67 to 70 years. In fact, about half of the 30 state pension plans that existed in 1935, and many of the private pension plans, used 65 as a retirement age. Most of the others used .1ge 70. Social Securitys creators thought 65 was the more reasonable age and believed the system could be self-sustaining if they chose that age. Myth #4: Social Security will run out of money in 2042.
Social Security will still be receiving payroll taxes from workers in 2042. What may have disappeared by then are the assets in the Social Security trust fund. Even that isn't definite, however. In june 2004, the Congressional Budget Office (CBO)
projected that the trust fund wouldn't city up until 10 years later, in 2052. The CBO used different assumptions than those used by the Social Security Administration , projecting faster growth in worker earnings, higher interest rates and lower inflation. Heres how the Social Security Administration projects the timeline: >- ln 2018, Social Security will begin paying out more than it takes in. For the first time, it will have to use the interest being paid on the securities it holds in order to meet its obligations. >- In 2028, Social Security would have to start redeeming the securities themselves. >- By 2042 , Social Security would have cashed in the last security, and the system would have enough revenue to pay out only 73 per ent of promised benefits. That percentage would drop over time if Congress failed to act. Myth #5: Social Security would not be having problems if foreigners weren't able to claim Social Security benefits.
The number of checks sent overseas in 2002 totaled 404,640, a tiny fraction of the 53 million or so checks Social Secmity issues annually Many of those folks may well be Americans who retired abroad; Social Security doesn't break down the overseas checks by citizenship. ln any case foreign workers who live in the United States have to work and pay taxes into the system for at least lO years to qualify for Social Security benefits, just as U.S. citizens do. What will really hurt Social Security are two factors: demographics and the scope of Americans who are covered. In 1950, there were 16 workers for every person receiving Social Security benefits . By 2015 , there will be only three workers for each beneficiary Fifteen years after that, the ratio will be clown to 2.2 to l. Even that demographic shift wouldn't be such a disaster if Social Security hadn't expanded far beyond its Original mandate of providing retirement benefits for workers.
www.greate rch arl otteb iz. com
About 30 percent of Social Security's total benefits are paid to retirees' dependents and survivors and to disabled workers. Here's a summary of the add-ons over the years: • In 1939, five years after Social Security began, Congress added payments for the families of workers who died, and for retirees' dependents (such as stay-at-home spouses). • In 1956, Congress added disability benefits for workers. • In 1965, Congress established Medicare to pay healthcare costs for seniors. • In 1974, Supplemental Security Income (SSl) was established as a welfare program for low-income seniors and people with disabilities. Of these ad d-ons, however, only the first two, payments to dependents, widows and orphans and disability benefits actually affect Social Securitys bottom line. SSI benefits are paid out of the federal governments general revenues. Medicare is paid for with its own tax and has its own trust fund. Like Medicare, the disability insurance program also has its own tax and its own trust fund. But the disability funds results are combined with that of the retirement system when Social Security insolvency projections are made, according to Goss, and account for $700 billion of the $3.7 trillion unfounded liability If the disabled, the dependent and the survivors were booted out of the system, Social Security could pay for itself assuming tax levels remained the same. "The system would be more than adequately funded," Goss indicates, "if only retirees were receiving benefits." However, that is not a solution that Goss or anyone else could endorse. Even if it were morally viable, kicking out all the widows, orphans, disabled and stay-at-home spouses is politically untenable. So we are back to choosing from the same controversial list of options: cutting benefits, raising taxes, privatizing some or all of the system. What we choose, though, should be based on the realities of the system, not the myths. O..iz Pulliam Weston- MSN Money)
greater charlotte biz
Health Center Settles English-First Dispute
A healthcare center in Boston has agreed to a settlement with Hispanic employees who opposed a policy that urged them to speak English when greeting patients and at other times on the job according to the Boston Globe. The healthcare center agreed to amend its customer service policy and strike disciplinary warnings from the personnel files of employees who refused to stop speaking Spanish to one another. In settling the dispute, the company denied any wrongdoing. The U.S. Equal Employment Opportunity Commission (EEOC) and the National Labor Relations Board (NLRB) mediated the settlement. The company said the English-first policy at the center of the dispute was prompted by complaints from patients. The amended policy states that patients should be greeted in English unless the client prefers another language. The revised policy reminds workers to keep personal conversations to a minimum when working where patients are present, but workers can use languages other than English whenever necessary when no patients are present, the newspaper reports. (Business Legal Reports) Workplace Trends for 2005
Susan R. Meisinger, SPHR, president and CEO of the Society of Human Resource Management (SHRM), recently spoke about emerging trends in Human Resources (HR) and HRs role in organizational success, as a part of Aurora Universitys Distinguished Speakers Series. Using information gathered from SHRMs annual Workforce Outlook, Meisinger identified several key areas on which HR professionals must concentrate: • HR must identify and execute health care cost reduction strategies appropriate for their organization. • HR must think strategically to keep enough talented people in the pipeline. • HR must identify costs and benefits of
different sourcing strategies. • HR must help organizations make the best decisions, not just the most popular. • Employers have to embrace diversity, showing respect and flexibility • HR must play a role in skills development inside and outside their organizations. • No matter who you are or where you are, your HR practices will be influenced by global events. Meisinger also provided a look at the five competencies that a recent study by SHRM, the University of Michigan and the Global Consulting Alliance identified as crucial to success of any HR executive. Those competencies are: • Strategic Contribution- Fifty percent of an HR departments Lime should be spent on strategic issues contributing to organizational success. • Business Acumen - Understand what the business of the organization is; its no longer a goal to "have a seat at the table," but rather participating at the table that counts. • Personal credibility - Do what you say you will do and when you say you will do it. • HR Delivery - Ensure that the basic HR functions such as payroll, benefits and employee relations happen. • HR Technology - Understand all that technology has to offer and wisely take advantage of it. Throughout each of the competencies, Meisinger stressed that anticipating and managing change is paramount to overall success. (The Management Association of fllinois) biz The Employers Association is a nonprofit Charlotte organization providing comprehensive human resources and training services. Founded in 1958, the Association maintains a broadbased membership of over 700 companies from all industries in the greater Charlotte region. The above excerpts were taken from The Management Report, the Association's monthly newsletter. For more information, please call Laura Hampton at 704-5 22-80 I I or visit their Web site at wwwemployersassoc.com.
february 2005
7
WHYWE EXIST. We are passionate about advising closely held businesses and their owners in defining and ach ieving their objectives. Let us do the same for you .
WI S H ART NOR.RI S H ENN IN GER. & PITTMA N ATTORNEYS AND COUNSELLORS AT L AW
Burlington 336.584.3388
Charlotte
704.364.0010
M e ban e 9 19.304.42 00
www.w nhpla w.com
RALEIGH/DURHAM/RTP 919.314.1001 CHARLOTTE 704.357.7900 CORPORATE 800.849.8266
8
february 2005
â&#x20AC;˘
GREENSBORO WINSTON SALEM www.atcombts.com
336.663.9294 336.721 .1207
Awards & Achievements The Institute for Social Capita l at The Foundation of UNC Charlotte, Inc. has recently received grants totaling $245,000 from the ]ohn S. and james L. Knight Foundation and the Charlotte Mecklenburg Community Foundation, an affiliate of Foundation For The Carolinas. Advertising & Media The Marketing Consortium, a fullservice marketing communications firm, has received five awards at the Business Marketing Association of the Carolinas 2004 ProAd Awards event. Christie Sears , account supervisor for Walker Marketing, Advertising & Public Relations, Inc., has been designated a Certified Business Communicator by the Business Marketing Association. Business and Professional Services Next Generation Consulting has been hired by The City Committee to lead its Hot jobs/Cool Communities initiative, a plan to study workforce trends in the city. Grant Thornton L.L.P., the nations fifth largest accounting firm , has ranked highest among accounting firms managing audits with clients with less than $1 billion in revenue in the ].D. Power and Associates 2004 Audit Firm Performance Study and placed second in a separate study of major tax firms. The firm has also reported that its revenues climbed 23 percent in fiscal year 2004 to $565 million and that its revenues have increased 54 percent over the past two years. Robinson, Bradshaw & Hinson has announced that 22 of the firm's lawyers have been named in Business North Ca rolina magazine's annual edition of "The Legal Elite. " Twelve lawyers from Poy ner & Spruill LLP have been selected by their peers for inclusion in The Best Lawyers in America 2005-2006. Eleven of the firm's attorneys have also been ranked among Business North Carolina magazine's "Legal Elite." Cadwalader, Wickersham & Taft LLP has appointed je.ffrey ]. Lee as a partner in the Real Estate Finance department and Robert L. Ug hetta as a partner in the Capital Markets department. KPMG has elected Michael E. Collins and Douglas L. Hassman to the firms U.S . partnership.
vvvvvv.gre ate rc h ar Iotte biz. com
Randy Mitchell of The Entrepreneur's Source has facilitated the purchase of the Discovery Maps franchise by Becky Case lla of Matthews. Randy Mit chell Roby n and Bill Crigge r, CEO and president, respectively, of Compass Career Management Solutions, have announced the formation of the Plant Closing Solutions Consortium to assist senior management of companies with plant closings and downsizings. T he North Carolina State Bar Board of Legal Specialization has certified Amy Berry of Crumley & Associates, PC, as a specialist in workers' Amy Berry compensation law. Crumley and Associates , P.C. has also promoted Elizabeth Crane to controller, and Susan Z. Martin has joined as community development representative.
Construction & Design Simonini Builders has won four national sales and marketing Silver Awards for their Heydon Hall community, site of HomeArama 2004 , and three additional national Silver Awards in Best Product Design categories and for Best Website By A Builder. Batson-Cook has started construction on the $26.7 million renovation of the Wachovia main building in downtown Charlotte. Mulkey Engineers & Consultants has added two transportation professionals to the Charlotte branch office, Thomas Harj ung, PE, as transportation services manager, and Heather Harken rider, as transportation designer. Shea Homes has added the following new employees to its team: j oel Kincaid as assistant superintendent, Sco ttie Hopper as superintendent, and Barbara Graham as accounts payable clerk. Skan ska USA Building Inc. has announced that Lynn E. Wenger has joine::l the company as scheduler and ]. Chris Sclwderbe/1 has joined as project manager SFCS Inc. , an architecture, engineering, planning and interior design group, has announced plans to move its Charlotte office from Park South Drive to the Design Center of the Carolinas' Courtyard Building in the South End Design District.
>-
greater charlotte biz
Sarbanes-Oxley has resu lted in an extensive compliance checklist affecting your entire organization. The value to be derived comes fro m t he integration of IT governance and controls into your business processes. As an executive today, managi ng risk and achieving com pliance are your most critical concerns. Let NouvEON Technology Partners be your risk management and com pliance partner in transforming your business functio ns into effi cient, repeatable processes.
~echnolo g !::J p ar~ ne r s
Share in the value of the "New Era" by becoming the rext partner in NouvEON 's 100% referenceable client base! Strategic Management Solutions
e-Solutions
A "NEWERAâ&#x20AC;˘â&#x20AC;˘ OF CONSULTING SERVICES Contract & Placement Solutions
For more information, please contact (704) 944-3155 or sales@nouveon.com
Tired Of
C~ AOU~Il Look Beyond The Resume/Interview Process To Find The Best Employees Determine wrich applicants will have long-term success wit in your organization. We have helped companies go from 14% to 85 % effectiveness witr their hiring process by using our proven as~essment techniques. Contact Scholz &Associates today!
lEADERSHIP DEVElOPMENT
704-987-0195
w w w .Improve Your Hiring Pro c e
55.
com
february 2005
q
Education/Staffing ettai.n group, a technology staffing company, :1as arnounced the opening of its fc路unh east coast office in Washington, D.C. CEO Inc. has promoted
Amy Canterbury LO HR consultant and has hired Brenda Curry as a new HR consultanL; the company has also hired Courtney Langdon as senior consultant for the comWiese pany's Health Care Services Division and Sarah Wi ese as office assistant. Financial & Insurance Carl E. Rogers Jr. , a securities and investment advisor represeming Equity Services, Inc., has achieved accreditation as an Estate Planner from the National Association of Es tate Planners & Councils . Tom Mustante has been elected vice president at First Citizens Bank. Gwen
CarrerasHaniss and Sonja Todd have been elected officers at the bank.
It may surprise you to know that :Jur color copier/printers are more affordable than most personal printers. Thats because the cartridges in those printers are costly to replace. And a color copier/printer isn't all you get from us. You get the seNices of specialists in our Color Division who can help you determine the equipment thats right for you. We have a Training Division. too. for your employees. and Appli:ation Specialists who can help you customize your nevv equipment to meet the needs of your workflow. 1\1/ this and the added benefit of certified seNice technicians. So itS no wonder we're the lar~est independent cifice equipment dealer around. w1t great names like Canon. Sharp. and Konica Minolta. 路 . us a ca II an d start ge:tmg G1ve th e k.1nd o f co 1or you've always dreamed of. at a price you can afford.
CHARLOTTE COP~
DATA ~ oFFICEAUlOMATION '7
INFORMATION
OATA~erwoAKING
MANAGEMENl
svsTeMs
4404-ASUJartNdrewBJUIEVard. 704 523 3333 FAX 704 525 1506 W\NWchariottecoiJ'fCJC..a com
THE AREA'S LARGEST INDEPEN'OENT DEALER OF COMPLETE OFFICE SOLliTIONS
10
february 2005
Government/Non-Profit jewell D. Hoover has been named vice president of the Diversity Council of th e Carolinas. T he Charl otte Museum of History has appoimed D. Jewell D. Hoover Steven Beam, Scott C. Bortz,
Natalie Cohen, and Mark P. Henriques to its new boa rd of directors. T he Arts & Science Council board of di::-ectors has approved funding of $ll9, 759 to 19 non-profit organizations LO support arts, science or history neighborhood projects tkough the Community Cultural Connection - grant program. The organization has also selected Anna Spangler Ne lson
www.greate rc h a rl otte biz. com
and Thomas C. Nelson to co-chair its 2005 Annual Fund Drive. Center City Partners has announced that Charlotte's 'Downtown Countdown' Ama Spar~•r New Year's celebration Nelsor attracted between 40,000 and 45,000 people, and that its Continental Tire Bowl Pep Rally attracted between 13,000 and 14,000 people. HSBC , one of the largest banking and financial servThomas c. ices organizati ons in the Nelsor world, has partnered with Jur..ior Ac'lievement of Centra l Carolinas to :.ea.:h loci! students the "economics of life," a pc1;ram to educate youth about :es"Jonsib e: consumerism. Health Core Arl Vw. Moore Jr., MD, FACR , was -ecently nr1::d vice chairman of the '\rr_erican College of Radiology Board of : h;mcell•: s at its Slst annual meeting and =hapter ~dership Conference. Richard B. Reiling, M.D. , FACS , medical director of Presbyterian Cancer Center, has received the American College of Surgeons 2004 Distinguished Service Award . Richard B Reiling Gerald M. Aronoff, MD, has authored The Hand-
book on Pharmacological Management of Chronic Pain, a new h andbook assisting medical professionals to evaluate and address Cerald ,.._ their patients' chronic pain. Aronoff Dave Turpin , certified rersonal nc: iner and president of Desk J:xl:ey Fi:~ ss , has recently been certified l•y tl1e Corrective High-performance Exercise a Ki n esiology Institute as rn Exercise CJach. Commerc ai/Resid e ntial Real Estate LandA-.erica Financial Group , Inc. , a provider of real estate transaction services, has appointed L. Hunter Meacham]r. vice president and state manager for North Carolina . The Charlotte Region L. Hunter Commercial Board of )>Meacham .r
greater charlotte biz
WHO DO YOU CALL? Are our salaries competitive?
The 2004 Wage and Salary S~nev • The best resrur ce fc ::;- arlotte regiona l cor : em:c-ti::n d::ta • Covers salarv dat3 ·c- oJer 285 benchmark :Ds iors \'ith 251 compan1es • Average/ 1/VE:ig,: ed .•:.:..€C3ge/ Percentile/ P=y ::;arp 8:atistics • 11dustry, cJunt'y E 1: : : fllJany size breakoLI:s
Th e
EM
A S S 0
SeOing Your BusineSJ /sOur Business
Specializing in companies starting at St,ooo,ooo in annual revenue. We provide independent appraisals of businesses, equipment and machinery for: sales, divorce, minority partner disputes, estate planning, etc. Representing: Privately Held Companies Manufacturing • Distribution Factory Dealers • Restaurants Service Businesses • Convenience Stores • Retail Stores • Print Shops Tavems • Fast Food • Automotive Service Stations • Gift Shops Liquor Stores • Coffee Shops
All consultations are confidential and at no cost to you If you've ever considered selling your business, call us today!
february 2005
II
REALTORS has announced the 2004 winners of the CRCBR Industry and Service Awards: jim Palemw received the "Cornerstone Award," john Barker Sr. won t:le "REALTOR of the Year Award," Chris Berry won the "President's Award," Rob Pressley won the "Committee Chair of the Year Award," and Robby Lowe won the "Corporate Associate of the Year Award." Lincoln Harris has announced Regions Bank as its newest tenant; the mid-Atlantic headquarters for Regions Bank will occupy approxi mately 20,000 square feet in One Morro raft Centre, part of the three building Morrocroft Center complex. Steve Slattery has announced the formation of SMS Real Estate Investment Services, Inc., specializing in commercial real estate in No rth and South Carolina. KIRCO , a Charlotte real estate, development and construction company, has announced plans to develop and construct two new medical office buildings in The Summit, a 69-acre Class A office park located adjacent to Gaston Memorial Hospital. The Women's Council of the Home Builders Association has named Hila ry Watson "Woman of the Year" for her service to the council, the community and the home building industry. First Co lony Corporation has announced the groundbreaking of its the eighth and final First Colony Corporation building at Belle Grove at the Arboretum created for upscale office and medical condominiums. Lauth Property Group has added Flint McNaughton as a regional Flint McNaughton partner. Retail/Sports/Entertainment
Classical 89.9 WDAV, a public radio service of Davidson College, has annou nced the hiring of Paul David Parhs as director of development. C-SET (Carolinas Sports Entertainment Television), the regional sports and entertainment network, has named john Halpin as director of marketing and comm unications.
12
february 2005
www.greate rc har l otte biz. com
~
Charlotte Bobcats forward Emeka Okafor has earned the NBA's got Milk? Rookie of the Month award for the second time and has won the organization's firstever league award. Starwood Hotels & Resorts Worldwide, Inc. has announced that The Ballantyne Resort , a first-class urban luxury retreat, will join Starwood's Luxury Collection of prestigious hotels and resorts. Charlotte-based Cutters Productions and North Carolina's statewide public television network UNC-TV have received the "Most Successful Pledge Program" award from American Public Television for the special,
f~usiness Success Institute Chapters in Charlotte • Mooresville • Matthews Our members come from a variety of industries, including engineering, m arketing, manufacturing, service and construction. Company sizes range from one employee to dozens of employees. The thing these companies have in common is the owners' desire to work smarter instead of just working harder.
Don't Miss A Moment Of Our 2005 Schedule February April June August October
Kids Concoctions with john and Denita Thomas. Harris Teeter has reported that its customers donated over 27 tons of food for Somh-eastern Food Banks in its annual Harvest Feast Food Drive . john L. Crawford has been appointed executive vice president and general manager of Charlotte Van John L. Crawford and Storage Co. Inc.
Technology Peak 10, a data center and managed services provider, has announced a multiyear partnership with the North Carolina Blumenthal Performing Arts Center. Peak 10 will host and manage the Center's critical information technology infrastructure and make a financial commitment of $30,000 to support the Center's operations. Market Central, Inc. , a global technology management company, has announced plans to relocate its headquarters to Charlotte from jacksonville, Fla. Atlantic Software Alliance has been named to the Best Software's President's Circle for 2004, an award recognizing the highest sales revenue during the previous fiscal year. Tourism & Travel Hickory Metro Convention Center was presented with ConventionSouth magazine's inaugural Readers' Choice Award. biz
-
"nme-Your Most Precious Resource!" "Accountability Is A Must!" "Hot Topics To Help You Grow!" "You're Fired! " "Keeping Your Team Intact! "
Members share experiences and concerns at the m eetings. They discu ss issues that are relevant and learn about pertinent issues from speakers and sponsors. The meetings get ra ve reviews. For specific dates, times, locations and membership information visit our Web site at www.business-success-institute.com or call Den ise Altman at (704) 708-6700.
design
advertising
marketing
public relations
full service adve•1isng agency www. wehaveideas . com Corne liu s, North Caro li na
{ w e
h a v e }
To be considered for inclusion, please send your news releases and announcements in the body of an e-mail (only color photos attached) to editor@greatercharlottebiz.com, or fax them to 704-676-5853, or post them to our business address - at least 30 days prior to our publication date.
greater charlotte biz
februar y 2005
13
The Role of Preventive Services in Controlling Health Care Costs ore companies in 2005 will look to promote prevention and healthy lifestyles such as cholesterol, obesity and blood pressure screenings to retain a healthier workplace and control rising health care costs according to the National Business Group on Health (Business Group), an organization whose large employer
costliest health conditions in terms of direct medical claims. 'There is substantial clinical evidence documenting that appropriate
M
services can maintain good health," says Carolyn M. Clancy, M.D., Director, P.HRQ. "Using the Task Force recommendations, the Employer's Guide can help companies educate employees and their families on the
members- primarily FortLme 500 companies- collectively represent more than 50 million U.S. workers, retirees and their families. The organization has recently released a new Employers Guide to Health Improvement and
screenings they should receive regularly from their clinicians to live healthier and more productive lives." While more than 90 percent of large companies offer employees some form of health promotion or prevention programs, a survey of Business
Preventive Services to help more companies foster healthier workplaces and control health care costs. Based on evidence-based recommendations from the U.S. Preventive Services Task Force (Task Force), the Employers Guide translates the science of clinical preventive services into accessible tools and materials for employers. The Task Force, sponsored by the Agency for Healthcare Research and Quality (AHRQ), is the leading independent panel of pri-
Group members found that fewer than 30 percent of employees used the preventive services offered in their health plans.
The new Guide is a comprehensive resource that includes the following tools: • Strategies for assessing prevention needs • Aframework for selecting high quality preventive services • Tips on securing the participation of internal and external audiences • Tools for evaluation • Translations of recommendations from the Task Force • A series of promotional materials for employees with health and prevention messages
vate-sector experts in prevention and primary care and conducts rigorous, impartial assessments of the scientific evidence for a broad range of preventive services. Its recommendations are considered the "gold standard" for clinical preventive services. "Data show that employers find a potential3 to l return on investment, or $300 for every $100 spent per employee, on implementing preventive services and health improvement programs. Those savings are significant, and as a result, we expect to see employers turning to preventive services to improve quality of life and to contain future healthcare costs," according to Helen Darling, president of the Business Group. In a survey of members last year conducted by the Business Group, companies cited preventable conditions, including heart disease, cancer, low back pain, diabetes mellitus and pregnancy complications, as the
More Companies Offering Wellness Programs for Employees U.S. corporations are doing more to promote wellness among employees, according to the American Management Associations (AMA) 2004 Survey on Corporate Health and Wellness Programs. The number of companies offering educational programs on self-care topics is up in all seven categories surveyed, including smoking cessation, exercise and fitness, and cholesterol management. Recently the AMA surveyed its members and customers about the well ness programs they o!Ter to their employees. According to the results, 80 percent of executives feel that corporate America has a responsibility to promote wellness, up from 7l percent last year. And companies are taking action. Twenty-seven per-
14
february 2005
"Investments in preventive services can significantly im prove the return on investments in health care," affirms Darling. "Promoting good health is a win-win situation for employers and employees." The Employers Guide, funded through a grant from The Robert Wood johnson Foundation , is available at no charge on the Business Groups Web site at www.businessgrouphealth.org.
cent of those surveyed say they are offering more programs this year than in 2003: 2004
Wellness Programs
2003
55%
Exercise and fitness
47%
49%
Smoking cessation
41 %
49%
Blood pressure mgmt.
36%
47%
Weight mgmt.
34%
46%
Stress mgmt.
33%
43%
Cholesterol mgmt.
27%
39%
Nutrition
25%
Nearly three out of four (72 percent) respondents say they attend the well ness programs when their company sponsors them, up from 63 percent in 2003. But only 35 percent of those companies that offer the programs extend some incentive for employees to participate.
Forty-five percent of the companies surveyed offer discounts or corporate memberships to health clubs for their employees, and 22 percent have exercise facilities available on the company$ premises. Another 56 percent of respondents said their organizations participate in community- or corporate-sponsored athletic activities, such as softball leagues, bowling teams or fundraiser walks/runs Thirty percent of respondents say their companies have cafeterias that provide or sell meals for employees, and 69 percent say that the selections offered are healthy, including fruits , vegetables and low-fat entrees. Thirty-six percent of companies offer corporate-sponsored , comprehensive annual physicals: 18 percent say they are extended to
www.greate rch arl otte biz. com
executives only and 18 percent indicate they are
More Findings
and 43 percent ex:)ect to do it in 2005;
for all starr members. Nearly three out of four
The survey also found that:
(74 percent) companies that responded provide
• 79 percent of employers increased their
nu shots, but 79 percent of those companies
retirees' contributions for premiums in the past
had cancelled or postponed the program due to
year, and 85 percent expect to do it in 2005;
the current shortage of the vaccine. For more
information, visit www.amanet.org.
Many Companies Drop Retiree Health Coverage in 2004, More Plan To Do So in 2005
• 53 percent increased prescription drug
• 29 percent raised out-of-pocket limits on retirees' obligations in 2004, and 37 percent expect to do it in L.005; and • l3 percent changed their policies in 2004 to offer retirees access to pooled bendits that
copays or coinsurance in 2004, and 49 percent
they pay for entirely themselves, and 18 percent
expect to do it in 2005;
expect to offer such policies in 2005. For more
• 37 percent raised deductibles in 2004,
information, visit kaisemetwork.org. biz
Transform your career!
Many employers this year asked retirees to share more of the rising cost of health benefits,
Derrick Boone
and some plan to do so again in 2005, accord-
WAKE FOREST MBA Aswciate Professor of Marketing
ing to a survey recently released by the Kaiser Family Foundation and Hewitt Associates that shows the "continued erosion of retiree health benefits among large employers," and reported by The New York Times, The Washington Post and
The Wall Street]oumal. The companies surveyed comprise 20 percent of the Fortune 500 firms and provide health bendits to 4.9 million retirees and their spouses. According to the survey, among companies with 200 or more employees, 36 percent oiTered retiree health benefits in 2004, compared with 66 percent in 1988. Eight percent of companies said they eliminated health benefits for future retirees in 2004, and 11 percent said in 2005 they will likely eliminate benefits only for future retirees. In addition, 1 percent said they will likely eliminate benefits for current retirees in 2005.
Company, Retiree Costs The survey found that firms oiTering retiree health benefits experienced a 12.7 percent increase in health costs in 2004, with employers and retirees sharing the cost increase at most firms. The companies expect to pay more than $17 billion in retiree health costs in 2004. The survey also found that workers under age 65 who retired in 2004 typically would pay $2,244 annually in premiums, a 27 percent increase from employees who retired in 2003. This group typically would pay $4,644 a year for spousal coverage. Medicare-eligible workers who retired in 2004 would pay $1,212 annually in premiums, a 24 percent increase from 2003 retirees. Spousal coverage would cost the
Nationally and internationally ranked
MBA pro gram .
typical worker in this group $2,508 year.
greater charlotte biz
february 2005
IS
a t erc h ar ottec <: .c olT
h h The Poyner & Spruill aw firm represents client5 in 2 9 areas of practice, yet its Charlotte office specializes in a half-dozen disciplines. As the office here has grown to 36 lawyers,
Client needs drive firm specialties _ _ _ _ _ _ _ _ __,
the firm has allowed the Charlotte team to develop and forge its own identity, with some surprising twists. "You start with o::1e client and develop expertise and become known in the industry," says Charlotte partner Frank Bryant, desc:-ibing the gradual process that leads to becoming a standout in specific areas. Charlotte senior partner Marc Harris concurs. "We are a full-service la'A firm filling the needs of our cjents," he says. "Still, we l-_ave several areas I think are particularly outstanding for us. " > 7
greater charlc路tte biz
february 2005
17
The firm rep-esents clients in financial ~rvices, real e Late, construction, transJ:o-ration, health care, and manufacturing. lt handles all kinds of litigation, including defen e of malpractice claims for profes~ion als. Also among the firms key clients arc closely held companies, cred itors, and ll.qet..:J-mid-sized employers. To start the surprises, theres the rela i•e newness of the Charloue office. Among tle ~taLes oldest and largest practices with JOJ womeys, Poyner&: Spmill is headquar::cr:::l i.n Raleigh and maintains an office in Rc::l.:y
tv cum. Ih:mgh the firms ort:t c:arolina wets ca .e L:> 1883, the Charlotce presence b~:;an ir l98E. The -im1s counts finarcial s~r-vi::es a-r:ong LS sp~cialties and , althougl- not LL~Jsu ::.l in a city that is a major firn.ncial co:::1.ter. Li.e ::>anks on the Lrm's client list are re-'erthdess impressive, i:Jcluding RBC Cotu::a., BB&T and Lexington Sta.e Bank. F= fiLncial institutions, Poyner & Spmill cl::es lerding, collections, foreclosues, secuQes an.:l lnisation. Hams reckons the firms Cl-_arloue bank-
mptcy and creditors' rights group is the regions largest and he praises Judy Thompson, the partner who leads it. Thompson is a board member for the Ame1ican Bankruptcy lnstitute and Harris clubs her a "big business generator." From across the country, firms needing bankruptcy services seek out Thompson, Harris says, to take advantage of her expertise and her national contacts. The fim1 also handles a high volume of foreclosures for its banking clients. Th1s brings up another unexpected twist. The in-house IT department has developed a revolutionary Web-based automated process for completing foreclosures, from the initial document production to sale of the property by a broker. The program dramatically reduces the Lime it takes banks to get their money out of foreclosed property. "Eventually this technology will be used for other purposes as well, and we're seeking patent protection for it," Harris says. With harloue claim ing the headquarters of eight Fortune 500 companies, perhaps its surprising that Poyner&: Spru ill concentrates on serving closely held businesses. Bryant, whose specialty is advi ing closely held firms, explains that Charloue has become a national banking center in only the last two decades, but the region always has boasted a vibrant business community made up mainly of small and closely held firms. Bryant recalls an observation shared by fonner Bank of America executive vice presidem Ed Dolby a couple of years ago as he was ending his term as president of the Charlotte Chamber. "Dolby said the banks in this community employ 30,000 people," Bryam remembers. "The small and middle market companies here employ over 300,000. The point is that the economy is being driven by those smaller companies. That is our market. Thats who we look to support our continued growth ." Closely Held Businesses
Soo. 849 . ~0oS "70 .•• ~~).Rooo
lq.6)26
;;IX
u•wu•. knt~ujfJ.Js. com
18
february 2005
Closely held businesses can be as large as $500 million in annual revenue, Bryant cautions, but most are considerably smaller. He estimates that the Charlotte office serves more than 150 small businesses. "The typical small business executive
www.greaterc h arl otte biz. com
comes in on Monday morning and hes got an employment issue , or a letter from the IRS, or a cash now problem, or an adult child that's coming along who may or may not be capable. Our role ," continues Bryant, "is to help this business person with those problems so he can do what he does bestrun the company. We've filled every imaginable role, from contracts to mergers and acquisitions, financings and succession planning." Quick with her praise of Bryant is joni juba, whose family-ownedjuba Aluminum Products Company fashions the outside "skin" for high-rise office towers throughout the southeast. Husbandjohnjuba founded the Concord firm that employs 22, and serves as its president. Two of the couples three daughters also work there. joni juba credits Bryant for helping her understand the dynamics of running a business when she signed on as chief executive three years ago. Bryant and his as ociates continue to help her run board meetings and retreats, draw up contracts and work on estate planning, she says. Bryant was instrumental in gettingjuba Aluminum Products a membership in the nascent Charlotte operation of the Family Business Center, a program of Wake Forest University$ Babcock Graduate School of Management. joni juba says her company wouldn't have known about the program any other way and praises the advice it has provided. Poyner & Spruill is a sponsor of the Charlotte campus of the Family Business Center, which helps members grapple with a wide range of challenges, from compensation to succession planning. During its first half-year in Charlotte, it operated from space in Poyner & Spruill$ office before finding a pem1anent home in SouthPark about a year ago. Bryant calls the Center "a wonderful idea," but adds that Poyner & Spruill wishes it had more visibility. "Its kind of a well-kept secret," he says Meanwhile, Poyner & Spruill helps smaller and mid-sized businesses by hosting it own periodic roundtable discussions to which the Charlotte office invites clients and prospective clients. The luncheons feature a speaker, either from the firm or from outside, on a topic important to closely held
greater char lo tte biz
''Our role is to help this business person with those problems so he can do what he does best- run the company., - FrankL. Bryant, Partner businesses. Participants enjoy picking each o_hers brains, not to mention the free legal advice. Bryant got a surprise of his own when he asked regular participants if they were tiring of the sessions and might want a treak. "There was an uproar," Harris dmckles. "They said ' o way you're going w stop this. "' Poyner & Spruill now runs three different roundtable groups in Charlotte, and also holds regular seminars for area <'Ccountants, generally from smaller firms. -=-he sessions are designed to get the CPAs up to date on legal issues that could affect them and their clients, Bryant says. Vigorous Client Representation
The litigation specialty brings another surprise in that Poyner & Sprui ll places a high value on trial experience, even among :;ounger attorneys.
Harris says the firm trains new attorneys in courtroom strategy, and actively works to ensure alllitigators get a chance to work on major cases. The result is a pool of seasoned attorneys who arc apable of handling a variety of cases ranging from the most complex litigation to the simple liability claim. Poyners clients benefit from this approach because younger attorneys' time is usually less costly, yet these lawyers have the training and experience to properly handle the clients case. "We have really good litigators in all three offices," says Harris, adding that they often handle insurance cases for clients such as the Delhaize Group. The parent of Food Lion supermarkets is among the firms top lO clients. "&ing able to settle satisfactorily for your client prior to trial is always a good thing," he says. "We always try to do that. Sometimes, however, it's just in the clients
>
OFFERING...
0 0 0 0
Professional Broker/Consultant services Long-term strategic approach to benefits management Combined 80+ Years of HR/Benefits experience Value added services, including personalized benefit statements 0 FSA, HRA, HSA plan administration The
EMPlOYERS
ASSOCIATION
Your Trusted Resource with 725 Local Members Providing Comprehensive Human Resources and Training Services 3020 West ArroiMJOd Road â&#x20AC;˘ Olarlotte, NC 28273 704-522-8011 â&#x20AC;˘ www.employersassoc.com
february 2005
19
best interests to go to trial." Lawyer's Mutual Liability Company of orth Carolina, the malpractice insurance fi rm for lawyers, also calls upon the firm. Poyner & Spruill is among several firms approved to work with that compan y to represent its insured lawyers across the state. "We handle many of their significant cases," Harris says. 'j erry Parnell is a past state bar president and is our main contact for this client. He's here in the Charlotte office." Rounding out the Poyner & Spruill areas of emphasis are health care law, employment law, and employee benefits. The firm represents such high profile clients as Pitt County Memorial Hospital, the largest medical facility in eastern North Carolina, and WakeMed Healthcare in Raleigh. One of the fim1 's major Charlotte clients is The Sanger Clinic, whose 65 doctors specialize in cardiovascular care. Stephen Wagne r, Sanger's senior administrator, says the reason is simple. 'They just are very good at creatively handling various legal matters," Wagner says. "They have e>qx ns in all different areas, which is really nice because sometimes you don't know what you need exactly." Though Poyner & Spruill is not the counsel of record for Charlotte's Carolinas Health Care System, it does much of the system's employee benefits work. Harris chairs the Carolinas College of Health Sciences board . In that capacity, he periodically hands out diplomas to nursing graduates.
"That's one of the most fun things 1 do," he says, smilir.g. Such ci>ic involvemenl3 are important to Poyner & ~]J rui ll . The connections of the attorneys ir its Charlotte oTice range fro m the board of the Elizabeth Neighborhood Association to the Charloue Regional Sports Commissio• to the board of the Children's Law Center Both Harris and Brya n say they and others- eep strong community ties from a sense of airuism. "It's the right thng to do," Harris sta le~- simply. "l found when l joined this firm ," Bryant says, "there was a high leve: of professional skill, comm_tment to the cc mmunity, and just fi ne pecple. l have found there are not many firms ..vhere you can say that you truly enjoy being with the people with whom you practice law. The attorneys here have a genuine commi..mem to the community, their clients, and ~ac h other." Auractin s quality people who are seasoned in the profession has meam slow but steady growth for the Charlotte office and for Poyner & Srruill overall, ac::ording to Harris, who joined lhe firm in Charloue ll years ago . Firm wile, attorneys numbered in the mid-80s then and the finn has grown, somewhat delibentely, to today's 100. "lf we need an associate who's got two or three years o- litigation experience, that's who we go after," says Harris, who adds that he amicipates P·Jyner & Spruill will grow statewide, as well as in Charlotte. Bryant co:tcurs, predicti r.g the firm will grow faster, tut not just for growth's sake.
"We're not looking to add areas of expertise. We want to attract more depth in areas that are strong for us," he says. "This is an integrated law firm . All fo r one and one for all ... biz Ellison Clary is a Charlotte-based (reefance wnter.
POYNER SPRU I LL .,.
Poyner & Spruill LLP One Wachovia Center 30 I South College St., Ste. 2300 Charlotte, N.C. 28202 Phone: 704-342-5250 Other offices: Raleigh, N.C. (headquarters); Rocky Mount, N.C. Attorneys: 36 in Charlotte; I00 in all three offices Principals: Cecil W Harrison Jr., Managing Partner; C. Marcus Harris, Senior Partner, Charlotte Office; Frank L. Bryant, Partner, Charlotte Office Office Inception: Charlotte office opened in 1988 by Mark Edwards and Richard Thigpen Jr., then president of the N.C. Bar Association Practice Areas: Charlotte office emphasis on financial services, bankruptcy and creditors' rights, closely held businesses, litigation, employment law, employee benefits, lawyer malpractice and health care law. Origins: Poyner & Spruill was formed January I, 1986 by the merger of two of North Carolina's oldest and most respected law fi rms: Poyner, Geraghty, Hartsfield & Townsend of Raleigh (est'd 1946) and Spruill & Spruill of Rocky Mount and Raleigh (est'd 1883). www.poynerspruill.com
GVfsit Charlotte's Most Beautiful Office Furniture Galleries! • Multi-million dollar inventory of brand name office furniture for the best selection and quick delivery
Introducing M~cThrift 's Brand ew Charlotte Showroom featuring Galleries by: r=~=~~-~-~---------~----~~----------~
Allsteel
• Lowest prices in North Carolina ... GUARANTEED ! • Statewide delivery and installation • Open office panel systems • Professional interior design service
.ft® Office Furniture 800 Clanton Road at 1-77 (at The Waterford Center)
:::o
feb r u a r y 2005
523-6220 Mon.-Fri. 8:30-5:30 w w w.g re a te rc h ar l otte b iz . c om
Expande Tu Mente, Extiende Tu Negocio E:;:p=-nd Your Mir:d, Expand )~:)U r Bminess
·:oT munica1e better with your em :>ky3es and cJstollers. :us:om ized Commanc Spani3h-M a gLa£e trcrin ng Evai lable -'or rnedicaJ &: dental, constructior & landscaping, business & co erce .. h:>spitality. irdustry & manufacturing and more.
70-+.3::0.4€·6( or Vv~.cpcc.edu/trc: i n in g
Corporate & Continuing Education
fe ~ruary
2005
21
e t~ing can be said abo
-oda 's retai ctmcspher:: it is ll:Ye cor p2tith::= tha 1 Ever. \.Vitr end'~)
·sJper:;tcre3
'e)cr:cs'
t ets' sJffixi..,9 c:lrr·J:;t Ever~/ rraj::r
S:orefr:)r-=. :.ometirte5 t ~rest
and
fJr t .... e tre~s . .,..
i~.
rar:; to Se€ th::
But every Jnce in a while, there is a vision
N.C. State Fair at the time and for 路.vhom
attract the exhibitors, selling the show to
created out o( something other than raw
Dorton Arena in Raleigh is named), came
garden clubs, horticulture associations, nurs-
materialism. 5ay, curiosity, or adventure, or
into the office complaining that his wife hcd
erymen - all the ones who made the show
whatever that motor is that drives new cre-
to go to New York for garden shov..s, whEr
successful. joan did the organization and
orth Carolina seemed like a much better
setting up the calls and Robert booked the
ations from old habits. Take for ir_stance, Southern Shows, lnc.
location for such a show."
participants that made the show a success.
One of the largest consumer show producers
Says Zimmerman, "l was immediately-
in the country, its concept was born in 1959,
enamored with the idea, but john had so
Zimmermans' first show took nine months to
and embracec by joan Zimmerman.
much on his plate at that time, he said, '1-
organize. While Joan confesses to having a
Zimmerman, 3t the time worked for john
you want to do this, I'll provide yo.1 with Llt
'black' thumb, for her, the first garden show
Harden, now nne of the most celebrated PR
support. But you are going to do it."' joar.'s
was an extremely exciting idea. "Both Robert
husband Robert very quickly enter::d the
and l are just naturally curious, and always
:::onsultants ir state history. As she tell; it, "Doc Dorton, (who ran the
scene, using his immense sales talents to
From concept to execution the
looking to see just how much we might be able to accomplish. We enjoy work and, because of the way we Southerners love our homes and gardens, we thought this concept might just have potential, and decided we should sec what was out there." Since then , Southern Shows has become one of the most prestigious consumer show producers in the nation. Founder of the Southern Spnng Home and Garden Show, the Southern ideal Home Show, the Southern Farm Show, the Southern Christmas Show and its now ubiquitous Southern Women's Shows, its reach has extended to twelve different cities and culminated in twenty different shows. From its newest addition in West Palm Beach, to its northernmost show in Detroit, and back toiLS home in Raleigh, Southern haws has a sphere of consumer influence that has yet to be rivaled on the trade show circuit. Recalls Zimmerman, "When we began this adventure, we had no money, no plan and no experience. But, we did offer a unique opportunity to connect businesses with an interested audience. While the first show didn't make a profit, it was well received and established a positive first impression . Plus, john Harden's extraordinary talent for PR established a powerful presence. Those two factors combined laid a firm foundation for what would follow. " Since then the company has grown exponentially. Masses of regional and national trades' people showcase their wares, and the shows are now supported by several major corporate sponsors. All the shows combined attract approximately 10,000 exhibitors a year. Exhibition space runs about $800 to $900 for a 10-foot by 10-foot square area, and sponsorships begin at $5,000. While the greatest draw is still the Southern Christmas Show in Charlotte with
24
february 2005
www.greate rch arl otte b i z.co m
South:rn Spring Home & Garden S1C'V held !'larch 2-6, 2005.
h ~ ld
appm<Imatel:. 140,000 visitors, the ·:orr..pany's grou"J of Scuthem Wome 's She NS ile provic.e a steady a."ld flexible forum to ~et exhib i ors face lirre with consumers
each spring in Charlotte; this year's show will be
drive better products,'' Zimmerman comments. She says another significant change in the shows is the available technology for produc-
s
ing them. "When l think of the days when
limite.lto a fe'..: ~eks. but the Warrens
we had manual typewriters, and when we
easollal show" li.b:e Christmas or sp-ir ar.Sho~
:1ren't subjccttc scheduling conltc "·
The Wo:nc-t's chows, a ccnsortium Jf
didn't have two-way radios to contact one another across an exhibit hall, it is rather
home ~ood, bhion, health, beauty an-_
dizzying. These days with e-mail and cell
shoppng d1sp ays, were launched in 1,SL.
phones, we're obviously able to be a lot more efficient."
when. acco~d..ng t.:J Zim:nermc.n, "Peope ."EEd just begun to realize tha: women marle80 percent of the pur:has:ng decisions for tile fam il y Then,'· :he adds, "they realized
But the Southern Show team hasn't replaced the need to be constantly in front of exhibitors and in front of attendees to get
women actua]y hJd some of their owr
feedback and suggestions on the shows. "We
mone->: The fo-mLla for the Women's Sh·J'•\'3
tell all our folks working at the shows, 'lf
addre!.sed t1e 11a1ket perfecLy"
your feet aren't aching and your face doesn't
Making a Shaw of It
hun from smiling all day, you are not doing your job."'
Sirce its bqpn"Lings, the content Jf he various shows has been determined Jy soli:iting bput frc:n an advisory group, wl- ch
There's No People Like Show People
joan and her husband Robert have been
now c::msists af e>.hibitors and commwuy
partners in Southern Shows since its incep-
leadeG. And throLgh survey, the compn} consta-.tly c.sks fo input from the gene -a:
tion. Son David is now president of the
public.. The cc11pany also relies on a vs bank of deocgrarhic ard psyc.hc·grapl:Ic infom.ation tt -t keeps them abreast of :consumer trends. " •nsumer cu Lure has definitely People are beuer eci.ucated ad
chang~d.
expectlluch
on:. We embrace this,
becau:oe it not Jnl; keeps us at the wp o ~ o'Jr game. b ut in the end, gEater expectaticns
greater c-arlotte biz
company and oversees al l operations. Says joan, "David has improved the bouom line a whole lot! He is a brilliant numbers man and guru of organization." She adds, "Between he and Robert, who still serves as the company's visionary, the company is well set to keep growing." The rest of the staff is carefull y selected through what Zimmerman calls "a rather unusual interviewing process." Prospective ~
'
p 704 3 7( 244( f 704 3 7C 292E
p 7 0 4 333 2200 f 70<. 332 )100
vvww. ::::r.stnre.biz rAar-'<eting Smal 3L siness A -nerica "M
25
employees first meet with the person they eventually might replace. "This way," says Zimmerman, "They learn the good , -:he bad and the ugly of the job, and determine if it would be a fit for them. " The prospect then meets the people they would work with, then senior managers, then the principals. The screening concludes with a meeting between all parties to determine the candidates viability The Zimmermans could not be more pleased with the results of their hiring. "We look for the ability to organize, to be creative, to sell, to absorb and retain a lot of i:liormation , to be able to work one on one, or with a group - we really believe that every •J ne of our managers is equipped to do any-.hing
Southern Ideal Home Show held in the fall in Charlotte; this year's event to be held September 16-18, 2005.
they desire." While a college degree is not required to work as a Southern Show
(CCVB)), has been very wonderful to work
employee, a flair for commitment and prob-
with. As 1 used to chair the organization severa
lem solving is a necessity
years ago, I know what the job entails, and I
"We have been incredibly fortunate with our staff. We wouldn't trade one of them. just
has a real genuine interest in the success of our business. We hCJJe 15 different business entities, and we could not have
organizations with which Zimmerman has
of people, huge amounts of work - and after
been involved. She currently serves on seven
just a couple shows we send them off and say
boards, and throughout her career has chaired
- 'Go do it! ' They come back to us only when
the Charlotte branch of the Federal Reserve
they need our help with something."
Bank of Richmond and been on the board of
and recycling their successful formula, the Zimmermans have the show circuit down to a science. Firmly established planning, logistics, marketing, selling, execution, and analysis practices are adhered to, and tweaked as needed , for a continually improving product. Zimmerman says that the company also has the luxury of an ethical and hard working contractor base that helps set up the shows. "Once we move into a city, it is very
Daniel, Ratliff & Company's help."
good relationships and depend on our serv-
rare for us to lose a contractor. We e:tjoy very ice contractors a lot."
,;r;;/y
A Group Production
K & M Tzre GmpliYly
Leadership of the host cities for www.danielraUiff.com 301 S. McDo·oli!ll Street Suite 512 <llarlotte, NC 23204
125 EPlaza Drive Suite 101 Mooresville, NC 28115
704.371.00110
704.663.0193
Southerns shows also work extensively with the productions. Says Zimmerman, "We try to work with each city to attract not just people who want to go to the show, but groups that will take advantage of other sitG and attractions as well. For example, Charlotte
it all Adds up.
the United Way and the Arts and Science
arduous at first, but after finding, revising
mc.naged them without
'-//;/nr
The former CCVB is only one of many
think of it- the huge spaces, huge amounts
The process of setting up a show was
"I think Daniel, Ratliff & Company
can say they do a wonderful job for this city "
Southern Shows, Inc.
~ ~
Southern Shows_
81 0 Baxter Street Charlotte, N.C. 28236 Phone: 704-376-6594 o r 800-849-0248 Principals: Joan Zimmerman, CEO; Robert Zimmerman, Chairman; David J. Zimmerman, President Started: 1959; and still fam ily owned and operated. Employees: 40 Business: Producer of 20 separate shows including the Southern Ideal Home Show, Southern Farm Show, Southern Spri ng Home & Garden Show, Southern Women's Shows and Southern Christmas Show. Combined audited attendance of over 600,000 guests.A single year's exhibitor base is more than I0,000. Markets: Charlotte, Raleigh, Greensboro, Birmingham, Nashville, Memphis, Richmond, Orlando,Jacksonville, Savannah, Detroit and West Palm Beach. www.southernshows.com
Regional Visitors Authority (formerly the Charlotte Convention and Visitors Bureau
26
february 2005
www .greate rch arl otte biz. com
Council; the Lst n.:mble:: th:oug-1 cbzens of importart: o~ izatic•ns and is a.so follovr::d by dozerE ofb1s~ness and citiznshp awards. Son C:l\-i d has ITI£jo: non-profitcommtments to -::-he ~lvati::n Arrr.y, Char o~te Rotary an:! o :he~s. as well as ser-i.ns as 3 :lirector c·- Th:: Scotli5h Bank. Raba t has ::ontribu!1'd t: mu tij: le : > rganiza:.io<s o•;e:r the years bu now pP-fe:rs to wo-k n norboard cap3.ciri<S \ th th..: nurs~r.s !lssociaticn~, ?Zrden du.: s nd _;ullica:JC~. Comre:1 ~ Da\ic. ''Eeing idlE. is sorr.e:hing tha do~;n't co~e ::asily toJ a nJ of us. We are fir:n belie•;crs tlut evei)'V='ho·e ·;.;e r,o -the city. _he: ..:X::libitors the visi or~ have ;a.ll 3iven so mud to us- ·..~-e must nate;; -::c·n::erted eff.:rt to gi•;c b-lck So at uery sho"' :here is U'i..lally a pre\-ie"-' eveni~ v-he:c tile ~xoceedsgc c: a localcbrity" While :onpetirion IS stiff anc gnting 3tiffer (m;~..nl; in ti-e br:n of heme -mpro ~ -nent sup-.:rst~s >W1d tiE like) .)out..lerr. )hows h~ erj::yec a enacious g-ip on its mdience . '\l.r:: .1a·v_ to s·.ay on to:> d wl:-.a~ :he big re.::~ile:rs are dc•i:l3, which is meres -
::ng becac.se sev::~al of them are .::ur spon:;or.: as well w~ ja·;e the abilitr .c put their :>rocuct in l-or_ Jf more peop.e .n one day iliat ::me lootim e\·er could, an.: they pro"'".de us wit!- thE. latest and great3t offerings ~J a=ract vi::itots to the show. It :E 3 healthy, tierdly am.:ngenent," comme:t£ David The sloV" eC•)no::ny has not 1311ly illec:ed Sol.l.he-n Shows' succe~. -'we have I:eerr fortumte, because we reel~ c.ren't Jfec..ed by c.. dovm economy -lings are tight=r for the CJ::lSumer, they .He stilllookI:tg :Jr an aEorcable source of tn t<': tainme:u <rtd attend in Ia:-~ numbers; C thL'1gs are pn:nperous, they eeoc and ~en:l more mooey Either wa); 1c exhibitor ge.s g-ear exposure." The ZiiTL-ne 11aos have a ten::ency to r:::a. t: eve:yd1in.-?, look and sou< easy, and i_3 obvioc.s they love: what they u . David ~ys, "Unlik: m~ny family busirEsses, we vor:o- extremely->well together, Tluarily beca1se we : ach have our spedo. grengths od 5kills w1icl- complement e<~:.h other. " biz
r
: Jsar~e
Visit ww w.re o-clea n.com Or call 704-391 -9696 888-39 1-9696
Charlotte U.S. To ll Free
B. De.:zel is o Char/otte-basec 'Tee/once writer
Success begins with a solid foundation. The Bclk College MHA ar UNC Charlonc offers:
Flexibiti,_. .. • MBA program designed for working professionals • classes on rhe main campus and in upw wn Charlorrc • evening classes t:har meer once a week • adaprablc course loads Facttl,_... • 68 graduarc faculf)' wit:h PhDs • l a rgc.~r faculry of any Charlorrc MBA program Cmmmmity Co11nectiom. .. • MBA smdems represcming 200 + companies • executive guesr speakers sharing managcmcm experience • ncrworking o pporrunirics wit:h alumni and business leaders
AACSB Accrcditatitm . .. • m ost prL-stigious national and internati ona l accrcdita don • held by o nly onc-rh..ird of all business schools
The Belk College MBA hosts monthly information sessions for prospective students and accepts applications for admission year-rmmd.
For a schedule of upcoming programs, visit www.mba. uncc.edu or call 704-687-2569. Infonn ation sessions are held both in the U njversirv City area and U ptown. ' N ew smdenrs may begi n the program in August, January or May. BE.LK COLLE.GE. M B A OF BUSINESS
lNC(}IARLDTIE Vi•ir us on rhc web ar mba.uncc.cdu
_sreater cn rlotte biz
february 2005
27
~N franc
ff
ses.
page next to so e d th
establ hed companies.One of
finr's fuunders
eaFair, ya d eat .. says wmâ&#x20AC;˘rev-
sP
ol
t he g rea er e t-a 1<:1:
E
b1z
,an.- 's based
sow er. etnary .t.OOS
29
Kathy Butler, a partner in the fr:mchise company PRS Franchise Systems, LLC, and Mike Butler, owner of the Charlo tt~ PRstore, explai n that before they started their business, small business owners needing marketing and public relations help had only two options: the big box PR firm or the freelance contractor. Large PR firms tend to be expensive and "typically don't cater to small businesses," says Mike. "They like the bigger clients, the bigger the better." As a result, "they don't really pay that much attention to the small business client." On the other end of the spectrum , the freelance writer or designer might offer personalized service and affordable p~icing , but in order to get a complete product or all the necessary services, a small business owner might have to hire two or more freelancers; and when the business owner requires more products and services, the freelance professionals may not be in a position to delive r. But now small business owners have a third choice: the store with big services, little prices, and dedication to small business. Customers can step into PRstore at any time during regular business hours and meet immed iately with aPR professional , no appointment necessary. PRstore offers a free one-hour consultation, during which they endeavor to learn as much as possible about the customer's business and marketing needs. A 10-step system makes the process easy and consistent for business owners, ensuring all their marketing needs are met and their budget respected. The process begins with corporate branding and identity - a customized and characteristic look for the customer; namely, a logo. PRstore offers three levels of branding to fit the varying budgets of business owners starting at $650 and ranging up to $3 ,500 for a top-of-the-line logo with custom typeface and distinctive mark. In keeping with the retail approach of PRstore, each step of the process offers an array of standard products available for customization, each with its owr_ trademarked name. So, for instance, at the "corporate information" step, PRstore provides business owners a selection of brochure styles including the Jumpstart, a
30
febru:tn l.OO:'
single-page single-fold full-color piece including custom text, stock photography and quality printing, designed for the new business with a modest budget. At the other end of the spectrum in terms of customizati on and price, is the Executive Elite, a 12-page piece with all the features of the jumpstart plus space for charts, graphs, product specs, photos and maps. But PRstore's services and products are not limited to the more than 50 standard trademarked products. Kathy Butler laughs, "There's always going to be the guy who needs the 3-0 house built for a tradeshow " Plus, they expect so me of their small business walk-in clients to grow into fullservice accounts, where they provide the same level of service that a large PR firm would. This is al ready happening at several of the franchises, faster even than they predicted. Getting Started The idea for PRstore grew out of Mike and Kathy Butler's experiences working for,
PRS Franchise Systems, LLC and PRstore, LLC Two Charlotte Locations: Atherton Lofts 21 08 South Blvd., Ste. I07 Charlotte, N.C. 28203 Phone: 704-333-2200 [Franchise and DesignCentral, the creative center that provides all the marketing products for all of the franchises] Independence Center 101 N.Tryon Street Charlotte, N.C. 28246 Phone: 704-370-2440 Principals: Kathy Butler, Partner; PRS Franchise Systems; Michael Butler, Owner, PRstore (franchise in Charlotte) Tagline: "Wha' Cha Need?" Employees: Four full-time in Charlotte; additional at franchise locations in Detroit and Grand Rapids, Michigan Business: Providing marketing and PR products and services in a retail environment to the small business owner. www.prstore.biz
www.greaterch arl otte biz. com
and owning, big box PR firms. When the two met, Mike was serving on the board of
uWe're very passio n ate about this. I feel like
a company for which Kathy was handling the marketing. Kathy had spent her career primari ly in retail marketing, while Mike's
we have an opp::>rtunity to change the way an industry does busine3s.
we're moving in the right direction to make
background was in government, corporate and agency public relations. Their personal
PRstore a hous3hold name for small business
compatibility combined with their complementary backgrounds made for a perfect fit
owners all across the country." - Mike Butler, Owner
when they decided to open their first PR and marketing firm together. While working together, they both noticed and regretted that their small business clients simply weren't getting the service they wanted and needed. "What we kept seeing was the small business guy come in and need something," says Mike, "but he really didn't get treated very well in terms of priority and attention." Adds Kathy, "I just didn't think that was fair. "
[WJe really feel like
But Kathy's idea - and her
per~istence
-
won out , and they opened their f.-st PRstore in downtovm Charlotte in August of 2001. The timing proved to be inauspicious. Barely three wee.<s later, New York's twin towers fell, along ·.vith thousmds of lives and most of th:: U.S. economy "Basically everything just shut down," recalls Mike. "For about three mmths after
So, according to Mike, Kathy had the idea to start offering the marketing and PR
9-ll , there weren't even very maLy people on the street; you just didn't see a lot of people out walking around. " For 1 com-
services in a retail environment. The idea was so novel that even Mike was dubious: "I didn't rea ll y see how that would work
pany whose busine~s model relief on foot traffic, it could easily have spellec disaster. "We had a period there where it \Pas really
necessarily"
touch-and-go ," rem::mbers Mike. "Nobody
knew what was going to happen, what was going on. So we just had to wait it out. " But even in those bleak post-attack months, the concept started to take root. "Almost as soon as we opened, we started getting inquiries from people from different pans of the country," says Mike. "They would come into the store and they real!}' liked the idea and wanted to talk about doing the same thing in their market. " Cloning Themselves So although their original plan called only for the opening of company-owned stores in the Charlotte area , almost immediately they began to look at franchising the ~
Make your mark! Ready to earn your graduate degree? Pfeiffer University's School of Graduate Studies is the perfect spot. We make it easy for you to balance caree r, family and life's othe r com mitments with a flexible curriculum, conven ient hours, the choice of on-campus or online learning opporw nities, and the full support of a caring faculty and administrat ion . So go ahead ... put you rself in the picture . And make your mark!
pfeiffer.ed u/i nfo Putting Full Fait h In Yo ur Future
"Accepting Applications for Summer Semester" greater char lotte biz
Charlotte Campus 470 I Park Road 704-521-9116
• MBA- Master of Business Administration • MHA- Master of Health Administration • MSL - Master of Science in Organizational Change & Leadership • Dual Degrees- MBA/MSL or MBA/MHA
february 2005
31
up, anxious to know when they would be open so he could start using their services. The Butlers return the love. "1 feel like 1 have love affairs around the country with small businesses," Kathy beams. "1 like the embracing." Mike concurs: "We're very passionate about this. 1 feel like we have an opportunity lO change the way an industry does business. It's exciting, it's interesting, it's challenging, and we really feel like we're moving in the right direction to make PRstore a household name for small business owners all across the country" As the first to market with the retail concept, PRstore is poised to take advantage of a grateful -and enormousmarket. But they do expect competition and, says Mike, "We welcome them. Our plan is to be the very best we can be and to be the market leader. " PRstore currently employs four fulltime staff, with additional talent available on a freelance basis. Their plan calls for more than 300 employees within the next five years, mostly creative professionalswriters and designers- plus two market-
PRsto re
: ho:<. ful : f
!
: re~ ~ :Yld
colc-r-JI bran c~. n~a rketing and
~~l~ s
n' t: ras a r d ide3s .
ing professionals to staff each of the planned four Charlotte area stores.
concept lor wi·:2- ;TJ"::J.icuion_ By _U; lOC::. . ~-Jl .n the ID.iddl~ of the terroris·- 1duc:: ~ -.::e::;s rr.. PR:wre had be.~n fu."l·2hiiT-..?
d-.t PF..stor='s :ra:rh sE agr~mEn1 ism:)le g~nErous than most., md ::-.oc l:.c::·s ;::trrc.ct ::J.~"¥ CM'Ile~s
-:Dj;:;y t:-e: cao:;nny -r:::;
sold a ::t:c..~ of d st::m:s, two cl wh:h art Jpera:i~
:md :he --e:tai.nC.~~
sd:eduif.::
10
L
too
The structure of the PRstore operation calls for a central creative center that provides the marketing products for the
\Vth seve::-al r;~w frand:.i3~ ~:£E'lll?Lt~
franchises. So, although the stores will be
=l·.e ,,·orlzs and :>f3l£lre'sc ;ecood. Chc.r:crre
franchised all over the United States, most
"..::ca:ion ope:1ed a. tb( be§Imi-.; ·Jf t}is
of the jobs wi ll stay right here in Charlotte
open :l\cr t-1.: Text fev yea:;.
::::o.r the future :c..Jb :•rig:-.: fu-tbe :.o:r:-
at DesignCentral, located in the Atherton
Also in tie wo-~ c..re io<:e:-s. :o[ cdcitiona..
?'"1'::"- and br busi::e::s o-..TeG ,..;ho cl,.-
Lofts.
frar chioc=>, mosJ.:' .n the :V&voe:.::t, inch.£-
o-:. t·1e:i::- scrvice".
~ ng
at le:a.i:.ten
:~
J-
Nhich atr:
For -<.=.y m;u~21ing prd~S.c•r.ds ar.d Jtl:.~r en:J::: ::>re~= ;...ho v.:.sh 10 srart
a
market~ :s.nd ?~ """Uir.ess, :lJGD::-e is
a
mc;tch r:- .:dz in ·-.?:r".en.. Y.J~:.:1 c. some
r:1 :-~2 ting
Although not from Charlotte them-
"-V\e have solv::d a pro:· em
:::lncago.
j
u
ca~Lt.l,
:x ~cles backsr::J_u.:i, and
:he right uslO-..l.C .:crvi:~ a:tin.ce, new franchi'c. :·Nncs c.= l ·akc ai,·nrag~ of 3. :he inf:-.Etr Jcture ~d tr.a..ning o.·~1lJb l e from an g::Jbl~ "E:f c:>mpar.;, V""i::.Le stakmg a claim o:- he ;:::::•rnxms.sma _ ::usiness
:::o:- s-nell
b·.:;im:~s
ownersc,' s::ty; ..1i<e "Tb= L:ill.§ d- n v.e've scrn coos ~ltl; s h.e app-e:~~
vibrancy, the energy of the small business
ti"i~
market here. This town really seemed to
res?onsE that -we·~ g:· ten trcn:: tl:.e
be a place that encouraged business
i= •eo bngu an c.~rthmgtt; :1~ s th~ rrnS<::on ;vo_ exist.'.
opportunity here to demonstrate the con-
Eu ;ine's ;:; dJ~,
owr.e~s ::ue
so
3tat~ ~J , :(<~: I]
t!E:Sff~C }C>U e-mails. ti-e; co::-e J? =1-I:rr )'Cll co: SJD.ethin~ for -~n. th::-y red!::' c. pee:.:bat ·'they SBl:.
Jffil - CAVC3 ,
sa~
ts_l.).. 01.c a. tr.mchise
tr
f-m.:::]- .;c Toces"
begms \,ith pl;;;:-_n_r.s ,_nd
r.~g(ltic.Leon,
fol-
]ov:ed \;;' ""3intr§ Dd su?::n:l.. S:l:;s Kafr..,
32
h= J r u ::.rt
~ 0 C5
growth, and we felt there was a lot of cept. We wanted to show that this could be done. " Proving the concept is enough for Mike, who plans to stay with the company until retirement. But Kathy says this is not
"\1\'e.re ·..ery d- ·~ vii: I-. c_ r c•vmers a this poi -·,.
business, says Mike, "because of the
pe<Jplc we serve- tiE smaL ·:::L&r ~so cv..T.o:r
muket i:- lleir •:"7"1 l-C:g·cn..
ow11er i:; ":: 1oso:n '
selves, the Butlers chose our city for their
FR3tme's vei;' IiGt ~ust:.me~. v,h .J Wlti-:J~s to L!Se PR>•or='sc pm::uct:;.a-td scrv:ccs, v.as so c te::::l ab::•Ll t1::.=:: sL:rc'"
C· p ~ ning
L t::
the final note in her career. "I want to be the first woman to own an she grins.
BA team ,"
biz
lrat ~e w::dJ..ed in Je :~ ~lE urr,~
v.as e"'en aso.:::rr.b ed oc.c t:-:..= o-iEIJ ?nt
Heather Head is a Charlotte-based freelance
write~
www.greate rc har Iotte biz. com
THERE'S NOW ABREATH OF FRESH AIR ON
AM 1
~
The Wall Street Journal Radio Network
~
Good Morning Carolina with Kevin and Kris Geddings
~
Dr. laura (Returns to Charlotte!)
~
Dr. Joy Browne (Positive Relationship advice)
~
Dave Ramsey (the "Dr. Phil of Charlotte Rad io")
~
It's That Mike Stiles Guy
~
News at the top of every hour.
local News, Weather and Traffic all day long
Bu ild your business by advertising with us! We have show sponsorships available with special new station inaugural rates! Call 704-537-9322 or visit www.1 060radio.com
1060 am---• NXNC
The Conversation Stat1on
© 2005 Geddings & Phillips Broadcasting Corporation is a local, family-owned business and an equal opportunity employer.
headquarters of Meineke Car Care Centers,
since its seventh month . In 2004, working
what Eberle calls "solutions." They are
attests to the effectiveness of the NouvEON
with 16 clients and 20 full-time employees,
strategic management solu tions, e-solutions
approach. "You don't get a lot of boilerp_ate stuff
revenue .
NouvEON offers three broad services, or
and contract and placement solutions. Strategic management brings oversight
when you ask NouvEON to come in,"
NouvEON came in just shy of $2 million in The company is anticipating the
for multiple initiatives that occu r simulta-
Meeks says. "It's really down to the nuts
Charlotte Chamber Technology Council's
neously, helps with fashioning business
and bolts and th ey quickly pick up on what
Blue Diamond Awards in March. It is a
processes and identifies outsourcing needs.
we need. They come back with a proposal
finalist in the "Diamond in the Rough"
that's right on th e mark the first time."
competition that recognizes performance
E-solutions offers experts to help with technology upgrades. It includes applica-
ouvEON is helping Meineke migrate
tion development and also systems
from legacy technology into what Meeks
integration and design, such as Web and
refers to as a "Web-based, total Microso ft
brand integration.
environment. " It's a big technology project,
Contract an d placement provides tar-
placement. NouvEON makes any combination of these services available through its unique approach known as "Resource Optimization." According to Eberle, this process blends the firm's internal resources with those that it can provi de with contract workers. That means NouvEON never taiconfiguration; rather it assembles resources
preface is short for the French "nouveau" or new. When in print, the company tints it green. EON, printed in black , is an era or a ge nerations, signifying a new era in consulting services. EON is capitalized because it also stands for "employee-owned network. " The goal is that each employee will own a portion of the company and the management team is working on a plan to
"Everything we do, if we don't have a
positive reference
fifth grade, is director of operations and a pan owner. So is Carl Johns, director of client solutions, along with a silent partner.
at the end of the engagement, it's not worth doing." T.]. Eberle, President and CEO
ings from its delivery mechanisms. So its
Occidental Life Insurance Co ., The Timken Company, and Premier, the alliance of notfor-profit hospitals and health care systems. NouvEON plans a spring move from cramped quarters at Fairview Road and Barclay Downs Drive to 5,000 square feet in another SouthPark location. It's also in Richmond , Virginia. In five years, Eberle hopes NouvEON will have expanded into 10 cities along the southeast coast. Potential targets include Raleigh, Greenville-Spartanburg, Orlando, Jacksonville, Tampa and Nashville. He projects small offices wi ll generate $2 million to $5 million in annual revenue and larger ones might produce in the $10 million $15 million range .
to
Helping NouvEON grow, Eberle feels , is its combination of strategic management, esolutions and staffin g. "We' re unique in that we have the three und er the same umbrella
he says. Meeks praises No uvEON's personal
and that we're ab le to deliver consistently,"
touch: "T.j. [Eberl e[ is very invo l路<ed in the
he says.
account. He und erstan ds the business very well. "
In People We Trust
From its start in February 2003, Eberle says, NouvEON separated its service offer-
Royal & SunAlliance, the Transamerica Reinsurance division of Transamerica
opening its first satellite office this month,
accomplish th at. Currently, Eberle is the majority owner. Jeff Hobensack, his close friend since the
The company's favorite market segments are insurance and financial services, manuBesides Meineke, larger clients include
lors a solution to fit its own employee appropriate to its clients' needs. So what about that name7 The "Nouv"
years old.
facturing, health care and franchise retail.
geted staffing on a variety of employment plans, from contract workers to permanent
among businesses that are less than three
Another reason for NouvEON's growth " I00 Percent Referenceability" And Meeks brings up a phrase coined when he says it provides
to make sure you surround yourself with
by how a client needs them delivered. The
"100 percent referenceability" "That's our number one phrase," Eberle
I've done that with Jeff [Hobensack] and
delivery could be project-based , contract-
says. "Everything we do, if we don 't have a
Carl Uohns]."
based, contract-to-permanent or permanent
positive reference at the end of the engage-
placement. Jim Meeks, vice president of informa-
ment, it's not worth doing. " Proof th at referenceability is wo rking
Eberle and Hobensack played American Legion baseball together growing up in
tion technology at the Charlotte
lies in No uvEON's record of profitability
strategic management solutions, e-solutions and con tract and placement soluti ons vary
36
february 2005
NouvEO
is associating with quality people, Eberle adds. "When you stan a business, you want people you can trust," he says. "Certainly,
Pennsylvania and th e long-time pals maintained contact as they attended college,
www.greate rch arl otteb iz. com
pursued their careers and began families.
before joining technology-oriented
a second-Ooor conference room with a win-
Eberle, his wife Missie and their two chil-
Ballantyne Consulting Group, which whet-
dow overlooking SouthPark Mall, they sa;
dren periodically visited and vacationed
ted his appetite for entrepreneurship.
they believe they can handle their biggest
with Hobensack, his wife Karen and their pair of kids. So when Eberle telephoned Hobensack
Eberle also goes back a way with johns,
challenges, which they lump into two cate-
the other top officer and part -owner of
gories- both concern finding the right
NouvEON. Eberle was working a
people- internally and externally. "Our biggest challenge has been capac-
in Atlanta in early 2003 to tell him his
PricewaterhouseCoopers project at Springs
plans for starting NouvEON, he wasn't sur-
Industries when he ran across johns, a
ity with a limited number of employees ar_d
prised at Hobensack's reply. "Well, you're
fresh-faced intern and recent computer sci-
contractors," says Eberle.
not doing it without me," Eberle recalls
ence graduate of the University of South
Hobensack saying.
Carolina. Eberle took johns with him to
nology and staffing skills in the market,
Ballantyne Consulting and both he and
adds Hobensack, and the experience that
"It was a 10-minute conversation with my wi.fe," Hobensack says. "She said 'Let's do it. ' The move has been fabulous for my fami ly. Charlotte is an outgoing community."
Hobensack convinced johns to join them at ouvEO Now johns is prominently involved with NouvEON projects at Royal &
There's no shortage of people with tech-
he and Eberle have built up helps them identify the best of them: "You just have to take the time to qualify them, make sure they're the right people."
Hobensack fashioned an information
SunAlliance in Charlotte, where the firm is
technology career after graduating from
helping the insurance giant deal with enor-
company that people want to work for,"
Lehigh University with a mechanical engi-
mous change that results from transitioning
Eberle maintains, and that is helping them
neering degree. He had been in Atlanta
various lines of business.
delivery on big-name accounts such as BeliSouth and Coca-Cola. Eberle graduated from Virginia Tech with a degree in industrial engineering and operations research. After working with Andersen Consulting, he joined what is now PricewaterhouseCoopers and came to Charlotte with them l3 years ago. He also worked for Sea-Land Services in Charlotte
NouvEON Technology Partners, Inc.
4118 technolog~
partners
620 I Fairview Rd., Ste.200 Charlotte, N.C. 2821 0 Phone: 704-944-31 55 Principals: Thomas J. (f.J.) Eberle Jr., President and CEO;Jeff Hobensack, Director, Operations; Carl Johns, Director, Client Solutions Founded: February 2003 Employees: 20 Business: Management consulting; technology consulting; staffing Re presentative Clients: Meineke Car Care Centers, Royal & SunAIIiance, Transamerica Reinsurance,The Timken Company, Premier Inc. www.nouveon.com
greater charlotte biz
find top talent. Eberle points to an unsolicited e-mail of praise from a client's chief
since 1995, working for Siemens Business Services and lnacom managing service
"We have established ourselves as a
Good Fit with Clients NouvEON prides itself in having consultants who work so well that they can't be distinguished from the lient's employees, so Eberle says he was pleased when one of his consultants was invited by Royal & SunAlliance to play on a company softball team. But the NouvEON consu ltant let a Oy ball elude his glove and smash into his face. Eberle shakes his head at the consultant's resulting broken nose and double black eyes, which kept him from blending in for a while. Then he praises the consultant's dedication, adding that he stayed on the Royal & SunAlliance project and finished the season with the softball team. That kind of dedication will help ensure growth, says Hobensack , particularly when it is coupled with the NouvEON business model that was planned from the start to embrace both the consulting and staffing disciplines. "We thought it was easier to begin with a plan in mind and one business model," Hobensack says, "rather than starting exclusively with either one of the two areas and evolve through acquisition . In this day and age, the way the market is, you really need both consulting and staffing." As they sit casually in slacks and opencollared shirts, Hobensack and Eberle seem confident in the future of NouvEON. From
risk officer. The officer wrote that a course charted by
ouvEON produced "one of
those rare instances when you can say witn 100 percent certainty that a decision and actions taken delivered benefit to the organization and avoided severe costs," he paraphrases. That leads Eberle to the second challenge: finding the right people externally. "It's getting in front of the right people to get our message out," he says. "We're just on the edge of getting enough marketing, branding and name recognition out there for a larger audience. "The great thing is, when we get in front of people, we actually have a very good success rate ," Eberle says, adding that references are a big help. "We very much belie·•e in references," Eberle adds, reinforcing hio emphasis on that coined word, "referenceability." Then Eberle pauses and brings his growth projections in line with the 100 percent referenceability credo. "Five years from now, we may be at 40 employees or we may be at 400," he says. "The culture has got to be the same; the 100 percent referenceability still has to be there. The mindset of our employee-owned network is fundamental regardless of how we grow." biz Ellison Clary is a Charlotte-based freelance writer.
february 2005
37
THE CONVERSATION STATION A REFRESHING BREATH FOR CHARLOTTE RADIO E ALL HAVE THEM. The acquaintances that make everyone uneasy. The abrasive co-worker always looking to push his views on you at the water cooler. The corny uncle with the bad jokes. The dry neighbor who wants to talk politics.
grea t er charlotte biz
february 2005
39
it. We're trying to give people information
ferent format, talk radio, and moved their stu-
is your answe r to all these acquaintances on
that's really relevant to everyday life, and not
dios to Charlotte. They increased the
the airwaves. The "Conversation Station,"
just talk politics "
transmitter strength to 5,000 watts to bring a
The new WXNC-AM 1060 radio station
wh ich came on the air the first of this year,
Their target demographic is clear:
stronger signal to the greater Charlotte area
intends to compete with talk radio stations
"Affluent men and women 25 and up who
around the area that focus on politics, policy
watch Oprah, Dr. Phil, The TODAY Show and
holding company, Geddings and Phillips
and comedy It is exactly what the Charlotte
Dateline when they're home, listen to us
Broadcasting Corporation, also owns
market was missing, bringing back to the
when they are driving to work," says Kris.
WKMT-AM 1220, a radio station in Gaston
Oprah and Dr. Phil certainly ha¡;e their
County that will simulcast most ofWXNC's
area national radio hosts such as Dr. Laura Schlessinger and Dr. Joy Browne- hosts that
followings, and, by appealing to the same
cater mostly to women and issues they may
audience, AM 1060 is well on their way to
be facing.
finding theirs.
ln addition to these two radio giants, on
While the station and idea may be brand
and parts of surrounding counties. Their
programming. Now, this new chapter for AM 1060 \vill place the couple right where they want to be -in the midst of an environment with which
any given weekday, you may catch station
new, the owners behind the business are
they are familiar, a community of concerned
owners Kris and Kevin Geddings hosting
anything but rookies to this game. The
citizens and parents, looking for a change.
their live local call-in show during the morn-
Geddings know what they are talking about.
A Mom and Pop Operation
ing commute. While much of the station's
Forty-year-old Kevin has been in radio since
programming is syndicated, the morning
he was a high school student in Sumter,
and evening drive-time shows are broadcast
S.C., and 45-year-old Kris has experience in
live from WXNC's Independence Boulevard
television reporting as well as writing, pro-
market is, in itself, a big deal in this day and
studio, as are some of the weekend broad-
ducing and hosting a syndicated radio show
age. The Conversation Station's competition is
casts. The brightly lit, cheery office space
in her hometown of Chicago and in
formidable- a couple of radio stations owned
wi th a view of the uptown skyline is the per-
Washington, D.C.
fect setting for upbeat conversation about the city and what goes on within its limits. Also featured on AM 1060 is the nationally syndicated Dave Ramsey with a mid-day
"We've always been around this, but we haven't been 'inside' a working radio station until we bought this one a couple years ago," Kevin says.
call-in show focusing on money matters.
air by 9:30 every night, but before the day at AM 1060 is wrapped up, listeners can tune in to "Chick Chat," an hour-long program
market, more than 100,000 by the Geddings' research.
tackling concerns and questions for men and women.
For a homegrown radio operati<Jn, business was booming for the newly formed
who encourages listeners to call in and "shoot the breeze." The station goes off the
The Geddings decided on this format when they realized this is exactly what the Charlotte radio market was missing. For such a large city, there was really only one talk radio option, compared with four or five
team is trying to make an impact in the radio
by Jefferson Pilot, a communicati ons giant that owns media outlets throughout the southern states. "This really is a David versus Goliath situation, because radio has obviously evolved to the point where really mom and pop opera-
Se Habla Espanol? The Geddings originally purch' sed the Monroe-based station WKRE in April2003, and transforn1ed it into a Spanish-language station to tap into the area's booming Latino
Afternoon drive-time listeners are treated to another local show, hosted by Mike Stiles,
The simple fact that a husband-and-wife
Spanish station. But the Geddings are as savvy as business owners as they are passionate about their jobs, and they realized th ere was only so far they could go with
talk stations in markets like Tampa, says
WKRE. "From a business perspective, the
Kevin Geddings. Because Charlotte's one talk
Spanish format was doing pretty well. It had
tions were pretty much bought up in the eighties and nineties," says Kevin.
Geddings & Phillips Broadcasting Corporation d/b/a
1060
-WXNC ~ .â&#x20AC;˘
WXNC-AM I 060 I WKMT-AM 1220 480 I Independence Blvd., Ste.803 Charlotte, NC 28212 Phone: 704-537-9322
station is very politics-centered , the
only been Spanish for a year and a half, it
Principals: Kevin L. Geddings and Kris Phillips Geddings, Owners Tagline:The " Conversation Station"
Geddings are doing many listeners a favor
was generating profit, it had a good growth
Employees: 7
by offering non-political conversation about
curve to it, but neither one of us speak
In Business: Since A pril of 2003
issues that hit close to home.
Spanish," Kevin explains. "We're not part of
Business: Charlotte's newest talk radio option, offering non-political, non-sports local and nationally syndicated shows that appeal to men and women over 25 years old.
'There's nothing wrong with political
that culture. Part of this is business and you
talk, but you sort of get done hearing it, and that's it. There's nothing about it that really
want to make money, but you also want to
changes your life or makes you look at
fun with and be a pan of."
things much differently," says Kris Geddings. "We felt like if we are going to make this format change, let's do something positive with 40
february 2005
make money doing something you can have Feeling that the station had reached a
www. l 060radio.com
plateau, the Geddings decided a change was in order. They decided on a compbely dif-
www.greate rch arl otteb i z. com
Kevil ' nd
< is intzniew ;::
·epresentativ= rY c..1arlc.tte Parent magazine, current ; ;a.r:ner with -che sta ion. on th e AM I060 -norning program.
"P:uticol;a.-i:' rr l:igger ::.:ks; l thick si.l e•i>t in ~:uLer a:rnmunities," c::nric.1es K-is. :::~ de~p te iG illtal1 tc:v:n charm, Cl::.z:::-l:tte is J.C lon5c:r a sr:uJ communi~y, an:l :le Ged.::.::Jg> have tle:.: work cut out fm the1. L'J.er tho: s~mles.:: switch fmrr tre ~ par..i.;:t fOITlat, b~:~use d .1e language arrl C1LrJQ. b~r-r-rr. tho; Geddin~ now prorrme thci.- ~ew st=.lic•n ihE o:d-G.=hioned, comrrJ.nity-bcsed ·;;.-ay Tho; :'"a mil_ ·.ran has becarr.::: a.1. <d~..ni.cem~nt Xl. wheels, after the cau~ e fot..rd .1 c~::.n~ ·who con:.:.. emblazon :he stocb log•J .md :XJ.¥amoi!:.g information on Ll.c doer~ and ·.d:J.dow:;. ··:t'> a ccrv~r:a.ic::1 stancr," laughs Kris. "; h:.= ccurles ~ .-year-o .c. ;;on and nineye:or-od dc.~h~ r ~c also ~~rt of the team ad-;cti3in§ e£.:xt TI:-ei: pu1:nts often recrrt thE~ o pass c•..tt s.gns and :;:?ark the ward :>f mclLI- att:::n·ion :r. ~v::-.ich 1.:-.ey hope to rel:. Tre fac.ily e To-.: b ro; fres~-iq;, and havir:g li-Jc- n .tolLill:ec~ 'le:ps tre :•udget, as ~ll WhLe C·Jope:ito-5 c.m d rot= seemingly cn:.les; :~nourt:: - f t:l:.lrleY on c.:fvertising, W:<:-J( w:ll. grc;.. :hanks D loyalliste:1ers qu c-:l> jur.:p::-Jg en Joard Ai.erti;ing i; L.oJl the crl~ thing pie~ :ttc brl5et th3t ~ lO b:: ::J.easured carefd y: T1e Ge:ICings' ·:orpo:-.-.e competitcrs ha-e s.Jdios [u[ .::J top-of-tb::-line equipmen _c.1d rr..or.c:y tc 5t=are :ar updates and reprr~ . Th:: .:::;-::::d ngs are taking baby scp:::, th~;-
g~::!3::er
cr 2.r
:>tte
t
iz
investing in equipment wise : a.:- d with an eye to the future. just recent ~-~ thy spen~ 536,000 on a system upgracl::.. ·When asked about the o~r,,.helming aspe::ts of the start-up proce:;;, c.opecially from the self-proclaimed "Dz-if' position the Geddings smile, cht.:ckle .md admit tmt they weren't overwhelmed at a..L It is clearly the attitude of confident bus 1.~ owners 'Vl:-.o love what they do. The Geddings are involvE ~,. th many groups around the area :hat 7'illJ.elp to recruit listeners, guests and a ctisers. ~evin is involved with tE-le C- IJOtte Rotary, Charlotte Advocates for Edw:r.::n, the tAayor's International C~bi.net. L-:.adership Charlotte, and many other g-·ni=-5. Kris is busy handling the ,..:..ildren and meir activities, as well as get~ nvolved vith their respective schools .~.:-~oi she believes that involvement wi ·1 ~r kids 5ehoJls will also be beneficia.. :::1 Jusiness, as r:u.:ch of AM 1060's program:::::Lq is geared tJward parents. During this critical time d gr.JWth for the s.ation, interest in such persc-:.1 issues as rarenting also serves as adve-:i.:.t::nent. Char 1otte Parent is a current p:.rtrer with t:1e :;:ation, and representatives f-:-r the publi::atio::~ make guest appe~ranc:::; Col. various s:tows such as the morning r-cgram "Go:x i Heming Carolina! " to ir.itiatc moversatior Y<ith local parents.
Talking About the, Future
Kevin and Kris :£ddings are a refreshing bre:~k from corpora~ America. No strangers to ruming a b·Jsiness hey have had their own public relations firn. out of Washington, D.C. for years. However. 'Vhen asked about the gaoe plan for the C1mversation Station, they lau3h and say t.:ley vould like to sell an ad. <\II joking aside. the advertisers will come. Their holding comp:my is currently in the b.ack, thanl<s to thE ::ash flow of the recent accp.1isition ofWlO.lT. ln the near future, the Geddings wJuld ltl-E to develop this station evn more. With scn.e of WXNC's shows alreiidy being simubst across the Catawba &v~r, their listener l::ase should expand rapk.l}- west of the city '\little farther d J.Nil the road another acq.1isition may be 3. goal; perhaps a station to tr e north ::>f Charb:te to expand even more. For now, thoug~1., tl-.E Geddings are working on .Jeveloping the.r own studio, where a team of engineers is c.lwa.,s at hand troubleshooting proJlems th.1t arise Trying to cut d::MTI the 14-hour workday should probably be a future goal, but ym:: won't hear any complaints from the Geddings. Their wmn demeanor coupled wifl. aggressive worl:. ethic will keep them b·J"Y, and keep the ::Jnversation going, as Olc.rlotte tunes in. biz Lind~
LeCort:hick 's a a arlotte-based freelance wnter.
fe:Jruary 2005
41
Social Security: Future Benefits, Present Costs Commentary provided by John E. Silvia, Ph.D., Chief Economist, Wachovia Corporation The Problem
ow much should present c ts of Social Security be altered to insure some set of future benefits? With the baby boomers just one presidential election away from retirement, the Social Security issue has become center stage for households planning retirement and workers and businesses that pay the tax to finance it. For financial markets, the under funded retirement program as well as the unfunded liabilities of Medicare suggest potentially larger federal deficits and questions the ability to finance deficits at current interest rates. Moreover, the growth of Social Security and health care entitlements is expected to outpace the growth of the economy over the next ten years. To close the gap between benefits and revenues strictly through higher payroll taxes would require a significant increase in the payroll tax. Meanwhile, productivity gains, economic growth and/or immigration are not likely to solve the gap problem by themselves. Benefit cuts are therefore likely to be part of the solution. Raising the retirement age and indexing that age for life expectancy might also help reduce the funding gap. Indexing beneficiaries' wage history for inflation rather than wages would also slow the increase in benefit payments.
H
The Plan
At present, Plan 2 of the Presidents Commission to Strengthen Social Security appears to be the base for any proposal this year. Three elements are key to this plan. First, workers may (not must) voluntarily di vert four percentage points of payroll taxes (up to $1,000) to an individual account. Second, Social Security benefits will be reduced by the amount redirected compounded at the Treasury rate less one percent. Third , indexing will switch to price indexing from wage indexing of initial benefits. Private accounts alone will not destroy Social Security as we l'Tlow it, despite clai ms
42
february 2005
Social Security, Medicare, and Medicaid Spending as a % of GOP 30
25 20 15 10 5 0
Note: Social Security and Medicare projections based on the intermediate assumptions of the 2004 Trustees' Reports. Medicaid projections based on CBO's January 2004 short-term Medicaid estimates and CBO's December 2003 long-term Medicaid projections under mid-range assumptions. Source: GAO analysis based on data from the Office of the Chief Actuary, Social Security Administration, Office of the Actuary, Centers for Medicare and Medicaid Services, and the Congressional Budget Office.
from some. But private accounts alone won't save Social Security either, despite claims from others. Social Security, Growth and National Saving
America is a savings-short society as investment spending continues to outpace saving. Therefore, one aspect of Social Security change is the expectation that any change would increase national savings and thereby better support our need to finance capital spending. One aspect of the President's expected proposal will allow workers to divert some payroll taxes to private accounts that these workers would own and control. This ownership in longtenn financial assets will create the base of savings for real investment. However, these private accounts would leave Social Security short of money to pay benefits to current retirees. To overcome this shortage the federal government would borrow money Private accounts and federal borrowing on the surface may or may not alter the national saving rate. The increase in gov-
ernment debt may be offset by the increase in workers' assets in their accounts. The challenge is to determine how household behavior may change with changes in the law. The process is dynamic and not to be determined a priori to the acting out of the saving process. There is also an intertemporal issue on how well projected tax receipts match promised Social Security benefits over time. Compared to the original background of Social Security legislation there are two key dynamics. First, health care and personal habits have led to a lengthening of life spans. Life expectancy for men who reach age 65 in the U.S. is 16.4 years. For women, it's 19. 4 years. Second , the retirement and level of expectations of the big baby-boom generation will require greater contributions to the system and/or less benefits being paid out. To address this balance of contributions and benefits the expected plan offered by the President will offer worke rs private accounts in exchange for reducing benefits they'll eventually draw from Social Security In addition, the indexing of benefits and the (Co ntin ued on page 44)
www .grea t e r c h ar Io tte b iz . co m
f.~~ETT 'LJ ~,fCft4 ~
Aa.wte.twiCA
Breakfast Club America is a business development company headquarted in Charlotte, NC. We have worked with hundreds of businesses over the years helping them develop new business and new business relationships .
-----w
7 0 4 . 5 5 6 . 7 3 3 0
or
8 0 3 . 5 4 7 . 7 8 4 1
w w . b r e a k f a s t c I u b a m e r i c a . c o m-....
greater char lotte biz
february 2005
43
(Continued from page 42) retirement age will also likely be changed. There are also proposals to increase payroll taxes or pump general revenues into Social Security that also may become part of the President's proposal. The final proposal will utilize some or all of these elements. The net impact on national savings wi ll onl y be determined as the program is played out. Another key economic element in the mix is the expected growth of the economy and productivity. Greater productivity will raise the growth rate of the economy and real incomes that will increase revenues. Productivity, in turn, reflects the investment/ savings mix as well . All this forecasting suggests a substantial degree of uncertainty for growth, savings and therefore tax receipts and benefits payments. Therefore any change in the current system is likely to be limited by economic realities as well as partisan politics. However, change is inevitable because, in my opinion, the current system
is unsustainable for both political and economic reasons. Finally, the U.S. is not alone in having a Social Security system on the brink of disaster. Western democracies such as Germany, France, Italy and japan all have public retirement systems that are seriously under funded relative to the demographic demands on the horizon. On the other hand, Chile has managed a reform plan since 1980 based upon mandatory savings that will likely be pan of any proposal put forth by this administration. In a similar way, Australia started its reform program in 1992, where employers make mandatory payments of nine percent of employee salaries into a privately managed fund. Currently, employers select the fund but, starting next year, workers vvi ll be able to choose among a variety of funds. Workers also have tax incentives to make addi tional, vol untary pension contributions. Two points are worth noting. First, Social
Security reform is not impossible. econd, other systems appear to have a three-track program, includ ing a sol id component of private contributions and a track to provide a minimal safety net. Finally, let's not forget the vol untary individual saving programs in private pension funds, 40l(k)s individual savings. All three tracks should provide the flexibility to create an improved level of living and greater certainty of sustainability of pension funding going forward. biz Dr. John SilviO IS ch1ef econom1st for Wachovia Corporation. Prior to JOining Wachov1a, Silv1a worked on Cap1tol Hill as semor economiSt for the Senate Jo~nt Econom1c Committee and ch1ef economist for the Senate Bank~ng, Housing and Urban Development Affairs Comm1ttee. He had formerly been ch1ef econom1st of Kemper Funds and manag~ng dl(ector of Scudder Kemper Investments, Inc. Silvia holds a B.A. and Ph.D. in Economics from Northeastern University and a Master's 1n Economics from Brown University.
bizresource guide Take advantage of these products and servrces from Charlotte's leading business-to-busrness suppliers.
r:
LandAmerica. More Than Just Title Insurance. LandAmerica offers a comprehensive suite of services to keep every commercial transaction on track. You only need to make one call, to one person, to facilitate the ordering of numerous products. ~ Title Insurance ~ 1031 Exchange ~ Valuations ~ Environmental and Engineering Assessments ~ Construction Monitoring ~ ucc Insurance Let LandAmerica save you time on your next transaction with a single point of contact, and the resources of a nationwide, real estate services leader. LandAmerica Commercial Services - Your solution for real estate transaction services.
IrA.~ -
landAmerica Commercial Services
To find out more, contact: John McDermitt
Hunter Meacham Vice President - N.C. State Manager Vice President E-mail: hmeacham@landam.com E-mail: jmcdermitt@landam.com Phone: (800) 868-6529 4:)2005 landAmenca is a regiStered trademark of landAmerica f<nanoal Group, Inc.
44
february 2005
AT COM Audi of Charlotte Breakfast Club America Business Success Institute Carolinas Medical Center Charlotte Copy Data CPCC Corporate & Cant Ed Daniel, Ratliff & Company Dilworth Hair Co. Employers Assoc-Benefits Employers Association Ginger Griffin Advertising Knauff Insurance LandAmerica Commercial Services MacThrift Office Furniture Mecklenburg County Recycling National College Savings NouvEON Technology Partners Pfeiffer University MBA PAstore Queen 's Cup Steeplechase Regency Alliance Group REO-Clean Scholz & Associates Scott Jaguar Tathwell Printing Time Warner RR Business Class UNCC - MBA Belk College UNCC Continuing Education Verizon Wireless Amphitheater WFU - MBA Babcock School WFU - Family Business Center Wishart Norris WXNC-AM 1060
pg. 8 BC pg. 43 pg. 13 pg. 1 pg. 10 pg . 21 pg.26 pg. 12 pg . 19 pg . 11 pg . 13 pg. 18 pg . 44 pg . 20 pg. 12 pg. 3 pg. 9 pg . 31 pg. 25 pg. 5 pg. 11 pg. 27 pg. 9 pg. 21 pg. 43 IFC pg. 27 pg. 30 pg. 24 pg. 15 IBC pg. 8 pg. 33
www .greate rcharl otteb i z. com
Do you know how many family businesses make it to the next generation? 1 out of 3 succeeds . . . 2 out of 3 don't. Which will you be?
Wake Forest MBA Family Business Center ,.. Charlotte Metro ,.. can help your company and family To find out how, contact us: 704.366.0540 or www.mba.wfu.edu/fbc
WAKE FOREST I UNIVERSITY BABCOCK GRADUATE SCHOOL
of MANAGEMENT
Never Follovv audiusa.com
Introdu cing the all-new 2005 Audi A6. With a 255 hp FSI Direct Injection V6 engine, or a roaring 335 hp VB. Road -gripping quattro~ all-wheel drive. And the Multi Media Interface (MMI"'), a highly intuitive system that puts countless controls at your filgertips. Get behind the wheel of its luxurious, driver-oriented cockpit and you ' ll discovEr why Auto Week said , "Everything Audi has done to raise the bar on interior design continues with this A6."
"Audi;' "quattro;路 "A 6;' " FSI " and th e four rin gs em blem are registered tradem arks and " MMI ' is a tradem ark of AUDI AG. " Never Fo ll ow" is a reg iste red trade m ark of A udi of Am erica, Inc. 漏 2004 Aud i of Am eri ca, Inc. To find out more about Audi see yo ur deal er, ca ll 1-800-FOR-AUDI o r vis it us at aud iu sa.co m.