Ameritrust Equity Ser vices
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High South Realty
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Bragg Financial Advisors
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Dilwor th Coffee
april 2009
YMCA
Servant Leader !"#$%&'!"()('*+,'-./($' -0"('12.3'40562351$7' -./($'.'4#88("(39(
James H. Morgan Chairman, President and CEO Krispy Kreme Doughnuts, Inc.
CHANGE SERVICE REQUESTED 5601 77 Center Dr., Ste. 250, Charlotte, N.C. 28217
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There is an advantage to getting communication solutions from people who focus on your business.
To help you better achieve your goals, we take a different approach to providing communication services. We make the needs of your business our top priority. You first. Our local representatives, who know the ins and outs of doing business in your community, work with you to understand your challenges. Next, we conduct a complete evaluation of your existing communication services.
The technology follows. Only then do we tailor our award-winning Internet, Phone and Cable TV solutions specifically for you — solutions that can help your company achieve greater productivity with low operating costs. Now that is reason to celebrate. Leaving you to focus on what matters most — the success of your business.
Call 1.866.TWC.4BIZ today for a FREE evaluation of your services INTERNET I PHONE I CABLE TV
Products and services not available in all areas. Some restrictions apply. Subject to change without notice. Call for details. ©2009 Time Warner Cable.
You first. The technology follows.
2009 You Are Invited TO BECOME AN EXCLUSIVE MEMBER OF THE HOOD HARGETT BREAKFAST CLUB IN 2009
HOOD HARGETT BREAKFAST CLUB The Premier Business Development Organization for Success-Minded Charlotte Business Owners.
2009 SPEAKER LINEUP April 3, 2009 Bobby Martin “Make it Count” Motivational Speaker
May 1, 2009
THE HOOD HARGETT BREAKFAST CLUB IS A ‘CATEGORY EXCLUSIVE’
Jim Nantz
BUSINESS DEVELOPMENT ORGANIZATION THAT DEVELOPS AND
Broadcaster CBS Sports
HOSTS SOME 36 EVENTS THROUGHOUT THE YEAR FOR ITS MEMBERS
AND GUESTS. THE GOAL OF THESE EVENTS: TO PROVIDE SUCCESS-
MINDED BUSINESS OWNERS WITH FIRST-CLASS VENUES TO
ENTERTAIN THEIR CLIENTS AND PROSPECTS.
HHBC
TAKES GREAT PRIDE IN CREATING A PRO-ACTIVE,
PROFESSIONAL-YET-CASUAL ENVIRONMENT THAT GIVES MEMBERS AND GUESTS THE CHANCE TO MEET AND LEARN MORE ABOUT EACH OTHER AND THEIR RESPECTIVE COMPANIES.
THESE OPPORTUNITIES
September 11, 2009 Dr. Ben Carson World-renowned Pediatric Neurosurgeon Johns Hopkins Children’s Center
TO DEVELOP NEW BUSINESS RELATIONSHIPS AND ENHANCE EXISTING ONES ARE KEY TO THE ONGOING SUCCESS OF HHBC.
October 9, 2009 Soledad O’Brien Special Correspondent CNN
November 13, 2009 General Hugh Shelton Former Chairman Joint Chiefs of Staff
in this issue
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cover story
Kripsy Kreme Doughnuts Many Carolinians know the story of Krispy Kreme. After six decades of building regional loyalty, it broke into national consciousness with success as sweet as its sugar-glazed confections. Although it has had its share of struggles since, recruited turnaround veteran Jim Morgan believes strongly in the company. His mission is to use the company’s brand to make a difference in the lives of people.
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Ameritrust Equity Services While market volatility has destabilized many mortgage firms, John Owens’ team seems to operate in a parallel universe of ringing phones and exploding laughter. How has he been able to remake his firm to match the marketplace and what are his secrets to success?
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Bragg Financial Advisors Despite trying economic times, the Bragg family sees the glass as more than half full and advises their clients accordingly. President Benton Bragg refers to a saying he often hears from his father, company founder Frank Bragg, “Life is good and getting better.”
!"#bizlife
High South Realty The beauty and tranquility of the High Country offers city dwellers the opportunity to escape the city and come home to privacy and peace of mind in addition to an abundance of outdoor activities and artistic attractions.
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departments publisher’spost
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workforcebiz
7
bizxperts
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bizoutlook
26
bizlife
28
employersbiz
36
biznetwork
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ontop
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bizbits
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on the cover:
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High South Realty
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Bragg Financial Advisors
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Dilwor th Coffee
april 2009
James H. Morgan Chairman, President and CEO Krispy Kreme Doughnuts, Inc.
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YMCA
Servant Leader
Dilworth Coffee Don Keen and Sandy May enjoy selecting from coffee beans around the world to hand-craft their gourmet coffees. Charlotte’s oldest independent roaster and wholesaler of coffee and coffee-related products continues to be a quality leader in the marketplace.
Ameritrust Equity Ser vices
!"#$%&'!"()('*+,'-./($' -0"('12.3'40562351$7' -./($'.'4#88("(39(
Photography by Wayne Morris
James H. Morgan Chairman, President and CEO Krispy Kreme Doughnuts, Inc.
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www.meetatharris.com 3216 CPCC Harris Campus Drive, Charlotte, NC 28208 704.330.4611 p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe
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[publisher’spost] 704-676-5850
Small Businesses Key to Economic Recovery The economy has shed 4.4 million jobs since the recession began in December 2007, with almost half of those losses occurring in the last three months alone. Pulling this economy out of recession will only be accomplished by creating jobs— the overwhelming majority of which will ultimately be created by small businesses across this country. As a nation, we must enable the small business community with the tools to turn this economy around. According to the most recent data, using the Small Business Administration’s definition of a small business as having fewer than 500 employees, small businesses represent 99.9 percent of the roughly 27 million total businesses. Small businesses are incredibly important to the U.S. economy. Two important facts: (1) Small businesses employ about half of all U.S. workers. (2) Since the mid-1990s, small businesses have created 979,102 net new jobs or 78.9 percent of net new jobs. Small businesses also: • Pay nearly 45 percent of total U.S. private payroll. • Create more than half of nonfarm private gross domestic product (GDP). • Hire 40 percent of high tech workers (such as scientists, engineers, and computer workers). • Are 52 percent home-based and 2 percent franchises. • Made up 97.3 percent of all identified exporters and produced 28.9 percent of the known export value in FY 2006. • Produce 13 times more patents per employee than large patenting firms; these patents are twice as likely as large firm patents to be among the one percent most cited. Market research also shows small businesses are primarily financed by commercial banks and other depository institutions which together account for almost 65 percent of total traditional credit available to them. With the U.S. economy in a tailspin, bank lending to small businesses has dwindled and even dried up in some regional markets. With higher lending standards, reduced property values and dramatically diminished secondary market lending, there is little wonder that small businesses are hurting and failing in greater numbers. Even in non-recessionary times, research from the last decade shows the survival rate of new employer establishments to be only 67 percent in the first two years; 44 percent at four years, and a mere 31 percent at seven years. Critical to any business survival is an ample supply of capital. In a recent announcement, President Obama promised $15 billion aimed at freeing the secondary credit market. That is NOT enough. That really is only priming the pumps because what is needed goes well beyond that figure. The president has also promised to eliminate the capital gains tax on small businesses. Thus far, his budget has postponed that action until 2014 given the economic crisis and growing budgetary deficits. It is necessary to implement this sooner. How do you get small businesses growing again? In the words of the movie Jerry Maguire, “Show me the money!” There must be rewards for the risk, the investments, the time and energy that small businesses require. Small businesses want a level playing field. They want to compete for quality workers, but hiring and retaining workers has become increasingly tough given the skyrocketing costs of health care, payroll taxes and pension plans. More often, larger firms can provide health care plans and pension programs at substantially lower costs than smaller businesses. And, increasingly, hiring workers is much less expensive in marketplaces outside the United States. Lowering employment costs will speed our economic recovery for the longer term. Thus far, the emphasis for recovery has been focused on the banking system. Banks must be repaired to become finance agents for businesses, but small businesses create jobs and build wealth. Business owners and entrepreneurs must see the incentives lined up for them to invest in new ideas and new jobs and new markets. It is essential that there be rewards for risk, investment and jobs. biz Sources: U.S. Dept. of Commerce, Bureau of the Census and International Trade Administration, U.S. Small Business Administration Office of Advocacy, Federal Procurement Data System, U.S. Dept. of Labor, Employment and Training Administration, Bureau of Labor Statistics
Let me know what you think - jgalles@greatercharlottebiz.com
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April 2009
Volume 10 • Issue 4 Publisher
John Paul Galles x102 jgalles@greatercharlottebiz.com
Associate Publisher/Editor
Maryl A. Lane x104 maryl.a.lane@greatercharlottebiz.com
Creative Director
Trevor Adams x103 tadams@greatercharlottebiz.com
Editorial & Sales Assistant
Janet Kropinak x109 jkropinak@greatercharlottebiz.com
Account Executives
All Advertising Inquiries x106 sales@greatercharlottebiz.com Marsha Bradford Sandra Ledbetter Dave Cartwright Bradley Jackson
Contributing Writers Ellison Clary Susanne Deitzel Casey Jacobus Janet Kropinak
Contributing Photographers Janet Kropinak Wayne Morris
Galles Communications Group, Inc. 5601 77 Center Drive • Suite 250 Charlotte, NC 28217-0737 704-676-5850 Phone • 704-676-5853 Fax www.greatercharlottebiz.com • Press releases and other news-related information: editor@greatercharlottebiz.com. • Editorial: maryl.a.lane@greatercharlottebiz.com. • Advertising: jgalles@greatercharlottebiz.com. • Subscription inquiries or change of address: subscriptions@greatercharlottebiz.com. • Other inquiries: please call or fax at the numbers above or visit our Web site www.greatercharlottebiz.com. © Copyright 2009 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. 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 or Galles Communications Group, Inc. No part of this publication may be reproduced or transmitted in any form or by any means without written permission from the publisher. For reprints call 704-676-5850 x102. Greater Charlotte Biz (ISSN 1554-6551) is published monthly by Galles Communications Group, Inc., 5601 77 Center Dr., Ste. 250, Charlotte, NC 28217-0737. Telephone: 704-676-5850. Fax: 704-676-5853. Subscription rate is $24 for one year. POSTMASTER: Send address changes to Greater Charlotte Biz, 5601 77 Center Dr., Ste. 250, Charlotte, NC 28217-0737.
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www.carolinasmedicalcenter.org
For the eleventh time, a survey of people who live in the Charlotte area named Carolinas Medical Center the preferred hospital in the region. Being awarded this honor by the National Research Corporation demonstrates the trust and respect earned by the thousands of physicians, clinical staff and other professionals who care for patients and their families. You named us your preferred hospital, which proves our goal of uncompromising excellence and commitment to care is more than a slogan. It’s a promise. And it’s who we are at Carolinas Medical Center.
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n s Thr ou gh E du ca ti o n C O R P O R AT E
L E A R N I N G
Solutions through
education Customized group training is available with on-site delivery options and scheduling flexibility. Visit our online library of courses to search and view content on hundreds of programs that can be tailored to your business model.
www.trainingmatrix.com/cpcc Contact a Corporate Learning advisor at 704.330.4660 or via email at: corporate.training@cpcc.edu
Work Force Training and Development
[workforcebiz]
Making Businesses Stronger, One Training Session at a Time Corporate Learning, Solutions Through Education
E
mployers want a more educated work force. Industry research shows business training can have a measurable impact on employee performance and a company’s bottom line. In fact, a National Centre for Vocational Education Research study concluded that individuals who received formal training were 230 percent more productive than untrained colleagues in the same role. As companies seek to keep up with technology and global competition, business leaders are recognizing the importance of training as a key to success. With a focus on work force development, community colleges are becoming known as the training resource for business owners and entrepreneurs across the country. Corporate Learning at Central Piedmont Community College (CPCC) is no exception. Working with Charlotte’s large and small companies, CPCC’s Corporate Learning Team provides programs in business skills, communication, computer training, leadership and management, manufacturing, construction and process improvement for more than 500 of the Queen City’s organizations each year. “The quality of the programs within CPCC has exceeded all of our expectations, and investing in our mid-level managers is already paying off. Through the leadership training programs, our managers now have the tools and the confidence to manage more effectively and efficiently, not only with knowledge gained in the classes, but with concrete action plans created in the programs,” says Tara McAlister of Charlotte Eye Ear Nose & Throat Associates. Helping businesses stay competitive Training that meets both staff and employer needs can help increase the quality and flexibility of a business’s services by fostering efficiency, improved safety practices and better customer service. By providing employees with the key knowledge and skills they need to perform their job, companies will see an immediate return on their investment through: !"Cost savings: It’s cheaper to train existing employees compared to recruiting new employees with the skills needed. !"Business output: Training increases employee productivity, creating an overall improvement in products, services and reputations. !" Employee retention: Training programs boost staff morale and satisfaction. Employees who feel confident in their jobs are less likely to seek employment elsewhere.
p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe
A trained employee is a happy employee Training employees is an essential activity for all organizations; however, it is often viewed as an expense rather than an investment. Not only will this philosophy hurt short-term profits, but it will also impact long-term progress.
A National Centre for Vocational Education Research study concluded that individuals who received formal training were 230 percent more productive than untrained colleagues in the same role. Instead, employers should focus on the goals of creating fellowship, learning and growth in the workplace. According to experts, training programs accomplish all of these goals. As the benefits of training trickle down throughout the company, employers will see improvement across all areas. Staff members will develop a sense of motivation as they learn new skills, report greater job satisfaction because they know what is expected of them, and feel valued because employers are investing in their professional development interests. Solutions through education More and more companies are turning to their local community college to craft programs that will meet their needs. In Charlotte, CPCC’s customized training options can be offered on-site or at any one of its six convenient campus locations throughout the county. “We have a very unique business. The instructor tailored the class around us and our talents that we offer to our clients. It was easy to stay focused because I felt the lesson was put together for us, not just for companies in general,” says Michelle Otto of Plant Partners. The Corporate Learning Team can also help you to connect to other resources such as state funding streams for training, interns/apprentices, and free job postings. Make the investment in employee training today. You’ll see its value as early as tomorrow. For more information on CPCC’s training programs, visit www.trainingmatrix.com/cpcc or contact Michelle Miller, director, Corporate Learning at 704-330-4778 or michelle.miller@cpcc.edu. biz This section is intended to highlight work force training and development programs and initiatives delivered by community colleges within the Charlotte region. Community colleges are invited to submit substantive content ideas to editor@greatercharlottebiz.com.
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[bizXperts]
Smart Salvos, Select Strategies and Succinct Solutions
"#$%&'()$!%*+%,
some business insights from those at the top… !
Being positive is critical in these uncertain times. At our Monday morning meetings we share “what went right last week.” This gives the entire team an opportunity to celebrate successes (e.g., 2 new clients) and discuss what they mean for the upcoming week. —Jay C., Richmond, Va. Use “Laser-Focused” marketing. Concentrate on short term targets with a high probability of success. Focus your company communications on: •Emphasizing your core business. Revisit/re-validate your value-proposition to make sure it is applicable to today’s changed marketplace. •Keeping your current clients happy. Increase your personal contact [NOT e-mails, faxes, voice mails] using these trying times as a conversation focal point. Recognize they are getting a lot of attention from your competition. •Developing a reduced set of success metrics that every employee understands and that can be updated frequently [as much as daily]. —TAB Board 312, Charlotte, N.C. Cut hours rather than people. Instead of cutting headcount, look to cut back hours for multiple people. Tell them it isn’t long-term, that there is a minimum time frame on it, with a set review date. For example, we had several CSR & Admin people cut a day each week—half take off Monday and other half take off Friday. The business
still has full coverage, but has cut payroll expenses 20 percent. Employees understand what is happening; they know that things are slower and would rather keep their job with fewer hours than have no job at all. Subsequently, we also arranged the days so they get a four-day weekend every other weekend.—Bill G., Charlotte, N.C. Stabilize an anxious team. Jeff Raynor You have a tremendous opportunity to impact attitudes during these uncertain times. Some pointers to help: •Talk to employees in group and individual meetings about updated plans, reassuring them that there are insightful leaders at the helm. •Create more opportunities for teamwork; lay ground rules for supportive team interaction. •Be the “rock,” providing steady, confident, support with excellent communications; stay even in temperament. •Resolve problems quickly; be fair and consistent following policies and labor laws. —Penny S., Mill Valley, Calif. Jeff Raynor, M.B.A., Certified TAB® Facilitator, heads The Alternative Board® - TAB Carolinas™, a global CEO peer group & executive coaching firm. Contact him at 704-554-6200 or visit www.TABCarolinas.com.
Providing Solutions Increased ROI Consultation Services Business Development Communication Solutions That Bring You Success Call George Glisan today. 1-800-HICKORY (442-5679) www.hickoryprinting.com 725 Reese Dr SW Conover, NC 28613
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Solutions to make your printed pieces bend over backwards w w w. g re a t e rc h a r l o t t e b i z . c o m
-$.+/
Smart Salvos, Select Strategies and Succinct Solutions
[bizXperts]
your company wants to file a lawsuit? think again… !
What if your company had reason to believe that its competitor had violated one or more of its trade secrets? Would you have the information needed to prove your claim? Would this information be stored electronically? What other types of information would you need to pursue your claim—would it be in your competitor’s possession? If so, how would you gain access to it? Filing suit may be necessary to halt the trade secret violation and to collect any damages your company has incurred. Additionally, filing suit may be necessary to protect the trade secret status of the information being unlawfully used by your competitor. However, filing a lawsuit is an expensive undertaking and in today’s electronically dependent world, it can be even more costly and complex than ever before.
Filing a lawsuit is an expensive undertaking and in today’s electronically dependent world, it can be even more costly and complex than ever before. To pursue your company’s claim, you will need to provide specific factual information to your attorney which relates to your claim. Your attorney will then draft, file and serve the complaint on your competitor. He or she should also send a litigation hold letter to your competitor to ensure that tangible information as well as electronically stored information (ESI), is preserved for the pending litigation. ESI has a broad definition under relevant procedural rules and typically includes all information which is electronically, magnetically or optically stored on your computer, voice mail, cell phone, and/or on any portable storage such as CD, DVD, thumb drive, etc. This definition typically includes e-mails, word processing documents, spreadsheets, online access data (e.g. temporary Internet files, history, cookies), back-up and archival files. Your competitor will then be required to preserve and maintain all ESI in its native format. Most parties to litigation are shocked to find that this duty of preservation may also extend to current and former computers, and other media devices including personal digital assistants, voice-messaging systems, online repositories, portable devices and media such as zip drives, thumb drives, and CDs or floppy disks; and cell phones. Under relevant procedural rules, adequate preservation of ESI may also require more than simply refraining from efforts to destroy or dispose of such evidence; parties have been required to take steps to prevent loss of ESI due to routine operations. Be careful—as a plaintiff,
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you too will be required to preserve ESI related to the pending litigation. As a result, you should also discuss your responsibilities vis-à-vis ESI with your attorney, who will undoubtedly immediately request a copy of your company’s document retention/destruction policy to ensure that no further potentially relevant data in your possession is destroyed. Bob Wishart Once your company has filed suit to protect its trade secret rights, your competitor will have an opportunity to answer and assert any claims it may have against you. The next litigation phase will be discovery; this phase permits both parties to serve questions, which must be responded to in a detailed fashion, as well as requests for documents. Discovery is a powerful fact finding tool because under current discovery rules, a litigant is permitted to gain access to information which is directly related to the lawsuit but also to information which may lead to discoverable information. This broad discovery standard, along with ESI and document retention/destruction policies, has changed the face of how discovery is conducted. While you as a plaintiff, will likely be able to gain access to information necessary to prove your case, if this information is ESI, it may take your attorney and his or her paralegals much longer to sift through the volumes of information provided by your competitor in response to your discovery requests—a classic case of being careful what you ask for. Additionally, if ESI is involved it may be necessary to retain computer experts to assess the ESI and determine whether it was been altered or whether vital information has been deleted or “scrubbed” from a computer with special software. All of these variables can and will drive up the costs of maintaining your company’s lawsuit against its competitor. Let’s put the shoe on the other foot and assume that your company is the one which has been sued for trade secret protection: how would you access e-mails related to this dispute and how many e-mails do you think you would find? Would these e-mails be saved on a server or individual computers or perhaps even both? Have any of these computers been repurposed or assigned to other employees? Please join us next month as we discuss the implications of ESI on your company, now a defendant in this lawsuit. Bob Wishart is a founding partner and head of litigation of Wishart, Norris, Henninger & Pittman, P.A., a law firm which focuses on helping business owners define and achieve their business and personal objectives. Contact him at 704-364-0010 or visit www.wnhplaw.com.
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[bizXperts]
Smart Salvos, Select Strategies and Succinct Solutions
0%%*&1'(1.!
what to do—audit, review or compilation? !
A frequent question of business owners is, “Should I have an audit?” The inevitable response is “It depends.” Before we get to an answer, we need to cover some background material. Background Almost every organization—whether it’s a privately held business, a publicly owned corporation, or a nonprofit organization—prepares financial statements reporting on its financial performance. Such statements help owners and managers make operating decisions, enable creditors to evaluate loan applications, and provide individuals with information to make investment decisions. Frequently, regulatory bodies, non-management owners, banks that provide loans, or other organizations that transact business with a company (such as suppliers that sell on credit or leasing companies) will request that an external certified public accountant (CPA) issue a report on an organization’s financial statements. The purpose of the CPA’s involvement is to add credibility and reliability to the organization’s financial statements. There are typically three levels of service that CPAs provide to organizations as part of this process. Below is a discussion of each of these levels. Audit—A CPA examines financial statements by obtaining an understanding of an organization and its environment, including internal controls, direct correspondence with outside parties, completing physical inspections and observations, applying inquiry and analytical procedures, and testing selected transactions by examining supporting documents. An audit provides the highest level of assurance that the financial statements fairly represent the organization’s financial position and results of operation in accordance with generally accepted accounting principles (GAAP). An audit is the most extensive (and expensive) of the three services provided by a CPA. An audit is appropriate for organizations that must offer a higher level of assurance to outside parties. An unqualified opinion or “clean” opinion from a CPA after an audit provides reasonable assurance to outside parties that the organization’s financial statements fairly present its financial position and results of operation in accordance with GAAP. An additional benefit of an audit is that the CPA performing the audit will identify and communicate significant weaknesses in internal controls of the organization identified during the performance of the audit. This first line of defense against fraud is the internal control environment of the organization. Any weaknesses in that line of defense represent opportunities for fraud to occur. Review—A CPA applies inquiry and analytical procedures to financial statements provided by management to determine if they are reasonable. A review provides limited assurance that no material changes need to be made to the
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financial statements for them to be in accordance with GAAP. A review is much less intensive than an audit and may be adequate for organizations that must report their financial performance to third parties, such as creditors or regulatory agencies. Reviewed financial statements may also be useful to business owners who are not actively involved in Steve Johnston managing their companies. Compilation—A CPA prepares financial statements from information provided by management. A compilation is the least expensive of the three types of reports discussed here and may be useful to small, privately held organizations that need help in
Talk to your accountant. They will be able to help you determine the best solution for you. After all, the real answer to this question is, “It depends.” preparing their financial statements. In a compilation, a CPA reads the financial statements and makes sure there are no obvious errors such as incorrect titles, etc. in the statements but provides no assurances that the information in the statements is reasonable. What to Do Okay, let’s get to the answer. First, you need to know if you are required to have one of these services by a regulatory body. Some examples of regulatory required audits include those required by the Securities and Exchange Commission (SEC) for publicly traded companies, audits required by the U.S. Department of Labor for pension plans, and audits, reviews or compilations required by the state for construction contractor licenses. If a service is required by a regulatory body, you normally don’t have a choice—you have to have that level of service. Next, consider your business needs. Would your organization benefit from the increased scrutiny of an audit? Would a review provide enough information for you or your management to make informed decisions? The third thing to consider are the requirements imposed by banks, outside investors and other third parties. Sometimes, these groups will require one level of service but you may be able to negotiate with them to reduce the level of service to a less expensive alternative. Finally, talk to your accountant. They will be able to help you determine the best solution for you. After all, the real answer to this question is, “It depends.” Steve Johnston is a partner at Blair, Bohlé & Whitsitt, PLLC, a CPA firm that provides accounting, assurance, tax compliance and planning services in addition to strategic planning and tax minimization strategies to privately held businesses. Contact him at 704-841-9800 or visit www.bbwpllc.com.
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Smart Salvos, Select Strategies and Succinct Solutions
2$3!4('$
[bizXperts]
customer interaction “on the go” !
Web interaction is quickly moving beyond the desktop. Through emerging mobile technologies, today’s Internet is almost always within arm’s reach, always accessible, delivering just-in-time content whenever and wherever it might be needed. The Apple iPhone, Blackberry, Google Android G1 and other wireless devices are dramatically expanding the reach of online communications, and savvy businesses are taking note. To get started, consider constructing a single “micro page,” perhaps specifically designed to serve the fast growing Apple iPhone audience. A micro page could encapsulate your customers’ most immediate and common communication activities. Think “MOBILE.” Consider how your customers will initially utilize your mobile micro page. Web-enabled mobile phones serve as constant travel companions, providing instant just-in-time access to information on an as-needed basis. Since the viewer is in transit, micro page interaction tends to be in brief bite-size bursts, requiring abbreviated keystroke data entry by the visitor and other time-saving short cuts. Take advantage of the unique features within the Web phone itself. Utilize the device’s built-in GPS capability to present convenient maps and directions that lead from the user’s current location. Post a “call now” button within the micro page that will automatically dial the user’s phone and quickly connect the call to your office. Offer onscreen live chat as an alternative method of
communication for the visitor. Provide a preset “buy now” button that allows established customers to more quickly place product or service orders directly over the Web phone, without the need to reenter payment and delivery information that may already be on file. Add an option to “e-mail a copy of this page,” so that the viewer may retain your content for future reference when later returning to Kip Cozart the desktop. Include an image upload tool or designated e-mail forwarding address so that customers may send you a descriptive photo snapshot taken with phone’s the built-in camera. Design considerations for your mobile Web site. Keep it simple, displaying information to be read with just a quick glance. Remember that content will be presented on a very small screen, so brevity is essential. List topics vertically, one item per line, presenting the most important content and links at the top of the screen. Limit image sizes to not larger than 60 x 120 pixels. Avoid use of Adobe Flash (Apple iPhone’s Safari browser does not support it) as well as cookies, frames, tables and other common page formatting techniques. Kip Cozart is CEO of CC Communications, a Web design, programming and Internet media company. Contact him at 704-543-1171. For additional information on iPhone micro page design tips and sample programming code, visit www.ccommunications.com/bizXperts.
The YMCA Honors... John R. Mott Award John R. Mott (18651955) was one of the great Christian leaders of the YMCA movement. He was known as a ‘citizen of the world’, served as Secretary General of the World Alliance of YMCAs, and received the Nobel Peace Prize in 1946. The name John R. Mott is respected globally as a shining example of servant leadership. Each year, the YMCA of Greater Charlotte presents an award in honor of John R. Mott. The 2009 recipient is James (Jim) H. Morgan. Prior John R. Mott Award honorees are: 2008 J. Frank Harrison III 2007 Steele Dewey 2006 The Dowd Family 2005 Russell M. Robinson II 2004 Malcolm (Mac) Everett 2003 Robert (Bob) King Jr. 2002 Graeme M. Keith 2001 H.C. (Smoky) Bissell
2000 1999 1998 1997 1996
Harry H. Brace Thomas M. Belk James J. Harris William M. Barnhardt Joseph W. Grier Jr.
George Williams Awards The original YMCA started in London in 1844 as 22-year-old George Williams and 11 friends came together for prayer and reflection. They were compelled to help other young men find what they felt: God’s grace. In recognition of George Williams’ leadership, each year YMCAs across the world recognize outstanding volunteers at their branches. This year, YMCA of Greater Charlotte branches honor… • Charles C. Ellison, YMCA Camp Thunderbird and YMCA Camp Harrison at Herring Ridge • Mark Decherd, Childress Klein YMCA • John Daniel, YMCA Community Development • Lat W. Purser III, Dowd YMCA • Bill DeLoache, Gateway Village YMCA • Michael Mayberry, Harris YMCA • Kathryn R. Colwell, Johnston YMCA
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• Louise Cashion, Lake Norman YMCA • William L. Heafner, Lincoln County YMCA • Terry Corriher, Lowe’s YMCA • Leroy Fields, McCrorey YMCA • Philip Summa, Morrison YMCA • David and Jo Clark, Sally’s Y • Eric Bailey, Simmons YMCA • David L. Foulk, Siskey YMCA • James W. Hovis, Steele Creek YMCA • Justin Little, Stratford Richardson YMCA • George T. Varghese, University City YMCA Willie J. Stratford Sr. Diversity Award In 1998, an award was established in recognition of Willie J. Stratford Sr., a devoted champion of diversity in the YMCA and community, for his faithful service and dedication to practicing John 17:21, “That they may all be one even as thou, Father, art in me and I in Thee, that they also may be in us; that the world may believe that Thou didst send me.” This award is given to someone who recognizes, leads and inspires others to help create a stronger community through valuing diversity. This year, the award honors… • Bridget-Anne Hampden
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John J. Owens CEO and President Ameritrust Equity Services
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by susanne deitzel
[bizprofile]
Strategic Balance Ameritrust Positioned for Strong Future
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These days, few industries change as rapidly as those in the world of finance. In the current economy, it’s no secret that the rules of the finance game are continuously shifting to accommodate a new vision for the national and global economy. This volatility has seriously destabilized many real estate, banking and mortgage companies. Insecurity, anxiety and a sense of the-tail-wagging-the-dog are pervasive; tense coworkers, finger-pointing, resignations and terminations have become the norm. Considering this, it makes it all that much more surprising to walk through the doors of mortgage company Ameritrust Equity Services and watch the activity—phones are ringing, people are laughing, and somebody is getting an impromptu massage in a cubicle. One of the loan officers walks in the door exploding with a giant “Whoop!” and on an easel in the team room rests one of those giant-sized Ed McMahon checks with lots of zeros on it. Didn’t these people get the memo? We are supposed to be hunkering down here. For the record, Ameritrust does not operate in a parallel universe. Its top-floor office in Ballantyne Corporate Park has several television screens that broadcast the same headlines and financial updates that you and I watch (although one of the screens is often tuned into ESPN). It is here that Ameritrust founder and CEO John Owens studiously tunes in to CNN coverage of TARP matters, and has carefully chosen an expert support team to stay abreast of breaking news in legislation, regulation and forecasts.
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He must be doing something right—Ameritrust remains one of the largest privatelyowned mortgage companies in Charlotte. Revenues for his company are up 230 percent from 2007. And, Owens leaves at 2:00 p.m. every day to coach youth baseball and volunteer. As you can imagine, a lot of people want to know Owens’ secret. The Entrepreneurial Experience Owens will be the first to tell you that it’s no secret—it’s hard-won experience. See, this isn’t Owens’ first lap around a downturn. He had built a successful business selling retail mortgages to customers in the late ’90s, when he experienced his first business setback. Owens had to lay off 90 percent of his staff and go 12 months without a personal paycheck. During that time, Owens switched the Ameritrust business lines from retail to wholesale mortgages. The new formula launched the company into a new playing field. By 2007, Ameritrust was on the Inc. 500 list, had grown to 183 employees and was occupying two floors of prime office #
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space in Ballantyne Corporate Park. Then the other shoe dropped—again. The lenders who partnered with companies like Ameritrust stopped offering the products that had been the meat and potatoes of the business. Like a bad dream, in March of 2007 Owens had to huddle his people and tell them Ameritrust was closed for business. “Hardest thing I have ever done,” says Owens. “I couldn’t even finish what I was trying to say.” Owens left the 4th floor in tears, and then did something important. He went home and watched his kids play. “I knew that what I chose to do at that point in my life was going to be an example for my kids. I asked myself what I would want for them if they were ever faced with a similar challenge. The choice became pretty easy after that,” he remembers. The choice was made, but the work was just beginning. Owens and his business partner and COO Tim Hilton spent months winding down the old business while constructing—again—a completely new business model.
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“By third quarter 2007, we had a plan in place,” says Hilton. “We invested money and concentrated our focus into the technology that would increase efficiency for our customers and expand our reach. We also started rebuilding our staff.” The chance to rebuild his team was bittersweet for Owens, as the new business model required a larger number of sales people, as opposed to the largely back-office staff of underwriters he had employed prior to the crash. Solemnly he says, “I still have people calling me up and saying, ‘When are we going to get the team back together?’”
! Play 1: When faced with a crash—look at the facts. See what it is, assess it, accept it, let it go. Owens explains, “The letting-go part can be tricky. Each time I had to stay apart from my ego and what I wanted for the business that used to be. If I got stuck in what didn’t happen or what I should have done differently, it would become impossible to see the opportunity being created in the void. If I couldn’t let go of my ideas based in what was, then I couldn’t build something completely new.” People in-the-know say this vantage is one of the things that separates a young versus a seasoned entrepreneur. “John is the classic entrepreneur. He has a passion for ideas, a commitment to people and proven resilience,” comments Bob Morgan, president of the Charlotte Chamber. “He is one of the people who has not only seen but demonstrated that new fortunes are created on the upside of seemingly negative events.” !"Play 2: Eliminate Distractions: FOCUS.
“The letting-go part can be tricky. Each time I had to stay apart from my ego and what I wanted for the business that used to be. If I got stuck in what didn’t happen or what I should have done differently, it would become impossible to see the opportunity being created in the void. If I couldn’t let go of my ideas based in what was, then I couldn’t build something completely new.” ~John Owens CEO and President
Playbook in a Downturn Because of his rollercoaster ride, Owens knows a thing or two about managing change. Lots of friends and neighbors have been calling him up and asking for advice. When asked to share a few of the most common themes that arise in those conversations, he boils them down to a few basic suggestions.
Says Owens, “The hardest part about starting up again was getting outside the negative chatter: the thinking around ‘being a failure’ and ‘what other people might think.’ It seems like a small thing, but I have found that negative self-talk amounts to little more than mental drama and getting stuck. When this happens I call on my athletic mindset to
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get focused and push through until the next benchmark. Then I have more steam for the next step.” Owens’ leadership and culture development coach Mike Whitehead weighs in: “John has done the introspection that many leaders find uncomfortable and has taken a close look at himself and what drives him. He does not take no, he doesn’t quit, and he loves life. As a result he inspires and motivates everyone around him.” !" Play 3: Innovate around your values and passion. Owens founded Ameritrust on a hallmark innovation: creating authentic, trusting relationships in what can be the intimidating and impersonal world of figures and paperwork. The distinguishing feature of his business was to create a company that can identify and address human needs with financial solutions. The result is a satisfying user experience that generates powerful word of mouth, glowing testimonials on the Ameritrust Web site, and high referral rates. “You can’t be successful with something you aren’t passionate about,” says Owens. “So all of the changes we make come back to our number one value: customer obsession.” When Ameritrust switched from a retail mortgage company to wholesale business model in 1998, the shift provided many new ways of looking at providing customer value. COO Tim Hilton says that Blue Ocean Strategy helped them find their sweet spot in the market. “Then and now we are moving ‘toward blue ocean’—away from the market frenzy and into a clear view of new market space.” When Ameritrust moved back into the retail mortgage market in 2007—this time it offered different products and new features. Ameritrust invested in Web-based technology to increase efficiency and access for customers and prospects. Owens and Hilton also leveraged the knowledge gained from their wholesale lenders to forge new practices and relationships. And they were methodical with planning and spending to create measured growth in the midst of these investments. In January of this year, Owens and Hilton began crafting a newly-systematized business process. Anticipating the tide of the Obama administration’s mortgage plans, these changes promise to improve Ameritrust’s hands-on service, lightning response time, and highly-efficient turnaround on closings. “These changes are designed to funnel the strengths of each team member to benefit the customer. Positions are more discrete and focused, which frees people up to do what
they excel at and redistributes tasks they don’t do naturally,” Hilton says. “This speeds up the process, creates a more rhythmic closing cycle, consistent revenue flow, and decreases training time and expense.” !"Play 4 –When Building or Rebuilding: Culture is Number One. When Owens set out to create a mortgage company, he was determined to do it differently than other companies. But to build and rebuild his business required finding and developing others who shared his vision. Owens says an investment in culture development was core to his success, “Company culture and a set of core values drive every major decision. They are the litmus test for all of our decisions from hiring to operations.” The Ameritrust culture is based on a model Owens calls CHIPP—Customer Obsession, High Trust, Integrity, Passion and Personal Growth. Ameritrust institutionalizes these principles with each hire, each transaction and each process, and as a result has created
COO Tim Hilton says that Blue Ocean Strategy helped them find their sweet spot in the market. “Then and now we are moving ‘toward blue ocean’—away from the market frenzy and into a clear view of new market space.” an enthusiastic network of customers, real estate and lending partners. Owens is serious about modeling the CHIPP values in his personal life as well. He is intentional about taking time for his family, coaching youth baseball, and taking care of his employees who call him “Coach.” “I have played sports all my life, and am a big believer in teams. My experience, and the example of mentors like UNC Charlotte Athletic Director Judy Rose, is that the people need to know that they matter,” explains Owens. “It is important to me that each team member knows that they make a difference, that what is going on in their life is important to others, and that they are a vital part of the machinery that makes things work.”
territory, Ameritrust continues to lead with a versatile and measured gait. With new refinancing guidelines, loan modification plans, a different set of mortgage products, regulation and legislation, Owens’s team is busy staying on top of information to deliver the best and most current options for customers. Owens is also investing in new hires. In the past several months he has added 25 new employees including new CFO David Oshan. “There are big opportunities out there,” comments Oshan. “And Ameritrust’s strategic balance of competition, accountability and empathy makes us well-positioned to find them and create a strong future.” But the more things change, the more some things remain the same. Owens personal and corporate vision will always include people. He is talking with members of the legislature about FHA guidelines and innovations to create optimal solutions for all types of homeowners. He continues to share his knowledge and experience with entrepreneurs, executives and people who seek him out for counsel. And then, he hits the baseball field and inspires the next generation how to give it all they’ve got. biz Susanne Deitzel is a Charlotte-based freelance writer.
Ameritrust Mortgage, Inc. dba
Ameritrust Equity Services 14045 Ballantyne Corporate Park Ste. 500 Charlotte, N.C. 28227 Phone: 704-909-5555; 866-318-8059 Principals: John J. Owens, President and CEO; Tim Hilton, COO Founded: 1995 Employees: 80 Territory: N.C., S.C., Fla., Ga., Mo.,Va., Ala. and Tenn. Awards: Inc. 500 Fastest-Growing Private Companies, 2005, 2006; Charlotte Chamber Entrepreneur of the Year Award; Forty under Forty, 2008 Top Places to Work, Charlotte Business Journal; Top Family Friendly Company, Carolina Parenting Magazine, 2004, 2005, 2006 Business: Privately and locally-owned retail residential mortgage company offering the latest in mortgage products and refinancing solutions; over 100 years of combined experience offering technological efficiency, trusted service and a “personal touch.” www.ameritrust.com
Going the Distance As the U.S. enters uncharted economic
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(l to r) Phillips M. Bragg Vice President, Retirement, Estate, and Charitable Planning J. Frank Bragg, Jr. Founder Steven H. Scruggs Director of Research, Senior Portfolio Manager and Member, Investment Committee Benton S. Bragg President and Investment Committee Chairman John F. Bragg, III Vice President, Corporate Retirement Plans Bragg Financial Advisors, Inc.
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by janet kropinak
[bizprofile]
Life is good and getting better
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lthough good news in the world of finance is hard to come by these days, the Bragg family sees the glass as more than half full and advises their clients at Bragg Financial Advisors accordingly. President Benton Bragg refers to a saying he often hears from his father, company founder Frank Bragg, “Life is good and getting better.” “This, of course, is a challenging market but we are working overtime guiding our clients through these uncertain times,” Benton explains. “Right now, we are focused on the sustainability of client portfolios and retirement income, and finding the best way to help our clients achieve this.” For some clients, this means having patience until things turn around. For others, this means making adjustments in their portfolio, and in some cases, in their lifestyles, but Benton remains confident that they will all weather the downturn. “It is human nature, but one of the biggest mistakes we can make right now is to react to short-term market performance,” says Benton.
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Good Stock in the Family Bragg Financial Advisors was built 43 years ago on the principles of hard work, honesty and doing the right thing—ideals that are still at the forefront of their business model today. #
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“We use an institutional method of investing to obtain diversification by asset class, sector representation and a mix of value and growth.” ~Benton Bragg President
Upon graduating from Wake Forest University (WFU) in 1961, Frank Bragg began his career in the insurance business. Having achieved some success, he decided to branch out as an independent sales representative and in 1966 he moved to Charlotte and launched his own firm specializing in employee benefit plans. Frank was a pioneer in the industry in that he was one of the first advisors to set up an employee self-directed mutual fund menu for a corporate plan. By the late ’80s, he expanded company offerings to include asset management and planning for individuals and families. In 1990, Frank recruited his oldest son John into the business. John, a WFU graduate and Certified Financial Planner (CFP), had previously worked for Hinrichs Financial. Today, Frank heads up the corporate advisory group at Bragg Financial. Three years later, Frank lured Benton, another WFU graduate, away from his position with
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Bank of America to join the firm. Benton earned an M.B.A. from Wake Forest and is a Chartered Financial Analyst (CFA) and CFP and serves as president of Bragg Financial and chairs the investment committee. “It has always impressed me how fiercely independent my dad was,” Benton recalls. “I saw how much he loved what he did and I wanted to be part of it.” Two years after Benton’s arrival, Frank’s youngest son Phillips, a WFU graduate like his father and brothers, left his position as a Wachovia Trust Officer to take his place alongside his family. Phillips is also a CFP and is responsible for the firm’s tax, estate and charitable planning group. Rounding out the principals is Steve Scruggs, who grew up with the Bragg brothers and later married their sister; he joined the firm in 2000. Steve earned an M.B.A from Wake Forest, is a Chartered Financial Analyst (CFA), and is the firm’s director of research and responsible for
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managing the Queens Road mutual funds. Benton notes that Bragg Financial’s “extended family” has over 75 years of combined experience in the industry. Among the firm’s advisors there are no less than 14 advanced degrees or designations creating a strong power base of professionals for a firm of its size. The firm even has a CPA on staff to provide in-depth tax advice and planning for their clients. Benton adds, “We treasure the people on our team and realize that they are truly our most valuable asset.” It is this family dynamic that sets Bragg Financial apart from its competitors. Each account and portfolio is truly managed by a team of professionals; which allows for continuity and a high level of personal service that is not always offered by larger firms. It also yields comprehensive financial advice, as each member of the Bragg Financial team offers unique expertise in his of her area of specialty developed through experience and education. Bragg Financial offers its clients disciplined investment management as well as estate planning, retirement cash flow planning, and advice on real estate, conservation easements, charitable
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planning, and income tax strategy. “It is unusual to have a financial situation with a client that we have not encountered within our own family,” Benton comments. “Real-life experiences are the best way to gain knowledge and to help our clients make wise decisions.” Benton is quick to credit his father’s leadership to much of the firm’s past and continued success. “He has done a great job managing the firm through its transition. He knows and appreciates when to be there and when not to be,” he comments. “We realize how fortunate we are that we enjoy working together. There is a high level of trust and commitment among the principals that is of great value.”
and maintaining a long-term focus adds tremendous value to client portfolios.” Bragg Financial adheres to a strict investment discipline in the construction of portfolios of stocks, bonds and mutual funds for its clients, which emphasizes diversification, long-term holding periods, fundamental analysis and riskadjusted returns. Benton explains: “We strive to manage money within the context of a client’s financial planning. We believe assets can only be appropriately managed with knowledge of a client’s estate, retirement and charitable objectives.” More simply, he states “the planning must
inform the investing,” which is why they devote substantial time and attention to each client with a careful evaluation of long-term objectives and risk profile. Once this process is complete and they have an understanding of the client’s needs and expectations, they determine a strategy that best suits an individual’s financial goals. When asked about the typical Bragg Financial client, Benton smiles and says they used to use $2 million as a benchmark, but these days, it is more appropriate to say they are looking for people who “used to have $2 million.” The Bragg team recognizes that sound investment management is a crucial means to secure #
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“Right now, we are focused on the sustainability of client portfolios and retirement income, and finding the best way to help our clients achieve this.” ~Benton Bragg President
A Portfolio to Bragg About Bragg Financial defines their role as helping their clients create, preserve and enjoy wealth. “We provide fee-based asset management, estate planning and financial planning for high net worth families, foundations and other institutions,” Benton explains. “We also have a corporate group that specializes in investment advisory services and employee communications for qualified plans.” The Bragg Financial investment philosophy is centered on the tenets of Modern Portfolio Theory, an academic body of research published Dr. Harry Markowitz over 50 years ago. “We use an institutional method of investing to obtain diversification by asset class, sector representation and a mix of value and growth,” Benton clarifies. “Our disciplined approach to regular rebalancing, managing for tax efficiency
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retirement. Retirement planning involves analysis of the retirement capital that is needed, design and implementation of a long-term investment plan, accumulation planning utilizing taxable savings, IRAs, Roth IRAs, and retirement accounts, and in-depth analysis of various withdrawal options for IRAs and retirement plan savings at retirement. A frequent question asked of clients is, “What good will you do with your wealth?”, which helps individuals plan for charitable giving through endowments, donor advised funds, charitable trusts, private foundations, and conservation easements.
In June 2002, Bragg Financial started two noload mutual funds, the Queens Road Value Fund and the Queens Road Small Cap Value Fund, both of which are managed by Steve Scruggs. Both funds have fared well in this difficult market and currently have a Morningstar four-star ranking. Benton credits the success of the funds to Scruggs’ management. Each has been listed in The Wall Street Journal’s Category Kings List, a list of the best performing funds in each category. Most recently, the Queens Road Small Cap Value made The Wall Street Journal’s Category Kings ranking as one of the top 10 best performing small value funds for 2008.
But Benton further notes that while the funds are attracting national attention and creating excitement for the firm, they represent only a small part of Bragg’s current business. Additionally, Bragg Financial’s services to corporate plan clients include consultation and plan design, RFP searches for appropriate plan service providers, preparation of the Investment Policy Statement, serving as a cofiduciary with regard to ERISA requirements related to investment manager selection and monitoring, and fully documenting all plan procedures and processes. Remaining Optimistic While Benton acknowledges that it can be easy to focus on the negative, especially these days, he explains that he and his team are instead looking for ways to make the most of the current economic situation. One upside to the downturn has been increased opportunity for communication with their clients. “We operate an open door policy with our clients and have certainly been in communication with them more frequently over the past few months,” Benton says. “We are using this difficult market as a means to build stronger client relationships.” In light of recent scandals within various financial sectors, Benton says their independence and size requires them to be accountable to their clients. “Because we own the company, we are reporting directly to the governing bodies,” he explains. “So we are not only accountable to the SEC and FINRA, but also to our clients.” He again refers to a saying by his father, “Do the right thing and you won’t have a problem,” and says it is this mantra that is behind their squeaky clean business, noting that their size and independence also means they can’t afford any missteps. “We are working in a controlled environment which allows us to offer highly customized services to our clients,” he adds. “At the same time, we are aware of the expectations put on us by our clients and strive hard to over deliver on those expectations.” In addition to assets under management, which are currently holding around $600 million, and performance of their mutual funds, Benton refers to client relationships as another gauge of the firm’s success. “Helping our clients achieve their financial goals is our goal and what makes the job worthwhile,” he comments. “If we are helping our clients do this, we are succeeding.” Benton sees this year as an opportunity to gain
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new business. “We are aggressively looking for new clients,” he explains. “There are a lot of people out there who have lost a lot of money and are looking for guidance and advice from high quality advisors.” At the same time, he continues, they plan to have very measured, deliberate growth with regard to new client relationships: “We have made significant commitments to our existing clients and therefore, we must be cautious about the number of new relationships that we can effectively manage without diminishing our highly personal level of service.” Like many family businesses, Bragg Financial desires to give back to those who helped contribute to their success and is very committed to serving their community. The company has been described by The Charlotte Observer as a “small company with a big heart,” and the firm was also recently recognized by the Mint Museum with its Spirit Award for contributions of time, talent and resources to the vitality of the arts. “We feel very fortunate to be part of this community,” Benton says sincerely. “We are humbled by the business opportunities our clients afford us and by their commitment in us as a firm.” Amidst uncertainty, the Bragg family remains optimistic, “We believe in this town, this state and this country and will continue to invest in their future.” biz
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Bragg Financial Advisors, Inc. 100 Queens Road Charlotte, N.C. 28204 Phone: 704-377-0261 Principals: J. Frank Bragg Jr., Founder; Benton S. Bragg, President and Investment Committee Chairman; Steven H. Scruggs, Director of Research and Senior Portfolio Manager; John F. Bragg III,Vice President, Corporate Retirement Plans; Phillips M. Bragg,Vice President, Retirement, Estate, and Charitable Planning Founded: 1966 Employees: 12 Assets Under Management: $600 million (as of 12/31/08) Mutual Funds: Queens Road Small Cap Value Fund and the Queens Road Value Fund Business: Provides fee-based asset management and planning for individuals, trusts, foundations and corporations. Institutional services include investment advisory services, corporate retirement plan consulting, fiduciary advice and asset management. www.braggfinancial.com
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Photo:Wayne Morris
James H. Morgan Chairman, President and CEO Krispy Kreme Doughnuts, Inc.
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by ellison clary
[bizprofile]
M
!
any Carolinians know the story of Krispy Kreme, the homegrown doughnut company. After six decades of building regional loyalty, it broke into national consciousness with success as sweet as its sugar-glazed confections. The Winston-Salem firm went public in 2000 and its stock sparkled. It split twice and was still selling at near $50 as it expanded into many states and several foreign countries. But almost as quickly, it fell flat as unleavened bread. Profits proved elusive, and shares plummeted below $2. Still, Chief Executive and President Jim Morgan believes strongly in the company. “Krispy Kreme has the potential to be one of the five or 10 most recognizable brands,” Morgan says simply. “As far as we know, we make doughnuts like nobody else,” he adds, as he professes his favorite is the Original Glazed treat the company started with in 1937. “I think we’ve got the best doughnut in the world,” he says with conviction. “Maybe we have the best sweet product in the world.” If that sounds a little like religious fervor, there’s a reason. Morgan leaves no doubt that faith drives every facet of his existence. It’s no accident that he’s talking about Krispy Kreme in a conference room at Charlotte’s Harris YMCA. Since he and wife Peggy moved to the Queen City in the mid-1980s, he’s strongly supported the YMCA of Greater Charlotte. The reason, he says, is that the “C” in the acronym for Young Men’s Christian Association is a capital letter and the word is a critical part of its mission. In May, the Charlotte Y will present Morgan with its John R. Mott Award, named for a man who championed the cause of displaced prisoners during both World Wars and who won the Nobel Peace Prize in 1946. The honor goes annually to a person who exemplifies Mott’s ideals through long service to the YMCA as well as adherence to its Christian mission. #
Morgan leaves no doubt that faith drives every facet of his existence.
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YMCA Servant Leader "#$%&'("#)*)(+,-(./0)%(.1#)( 23/4(51673462%8(./0)%(/(5$99)#)4:)
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“It’s very humbling,” Morgan says, “even more because of the people who have won it. To be on that list will be one of the great honors of my life.” Former Mott Award winner Russell Robinson, a founding partner of the Robinson, Bradshaw & Hinson law practice, calls Morgan “a superb choice.” “He puts his beliefs and values based on his faith foremost in all he does,” Robinson says. Morgan credits his father, Heyward Morgan, for setting his life’s course. “He helped me understand that your career is not the most important thing in your life,” Morgan says. “It’s your faith, your family and your friends.” At Krispy Kreme, Morgan has instituted extra holidays for employees, giving them occasional Fridays or Mondays off during the summer. Management’s only request is that they use the time for faith, family or community. After a year at the helm, Morgan names his concern for those Krispy Kreme employees as the hardest part of his job as he continues steering the company in a 180-degree arc toward profitability. “It’s their passion,” he says. “They’re loyal to a fault. We’ve got people who have been here for 20, 30 and 40 years. “I told them our mission is not to sell more doughnuts,” he adds. “Our mission is to use this incredible brand called Krispy Kreme to make a difference in the lives of people we touch. If we do that, we’ll sell a lot more doughnuts. Our shareholders will be happy and all the other constituents will be as well.” Morgan’s Mark: Basic Humanity Attorney Robinson says Morgan excels at turnarounds “because of his basic humanity and the way he treats people.” J. Frank Harrison III, chairman and chief executive of Coca-Cola Bottling Consolidated Company, is another Mott Award winner. He heaps praise on Morgan, who serves on his board. “When Jim provides
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Harris YMCA Chapel Windows The Young Men’s Christian Association was founded in London, England, by Sir George Williams in 1844. At the close of World War I, J. Dudley Forsyth of the Worshipful Company of Glaziers & Painters of Glass was commissioned to create a stained glass window honoring the efforts of the YMCA in England during the war. The window was dedicated in Westminster Abbey by Her Highness Princess Helena Victoria on November 14, 1921. The following inscription appears on the Westminster Abbey window: “To the glory of God and in memory of the service rendered through the Young Men’s Christian Association during the Great War 1914-1918; and to George Williams, its Founder.” The stained glass window in the Harris YMCA Chapel is an interpretation of part of the window hanging in Westminster Abbey. It was dedicated on January 5, 1998, in loving memory of James W. Coon.
leadership,” Harrison says, “he always does so with a servant’s heart.” Besides Christian leadership, Harrison says, he admires Morgan’s keen intellect, energy and work ethic. Morgan is working on the experience of visiting a Krispy Kreme store, with an eye on making it more compelling. The average customer visits Krispy Kreme six times a year. With a warm greeting and top service, that person might drop by twice as often, he thinks. Adding complimentary products such as Kool Kreme soft ice cream, served with access to a fruit topping bar, is bound to help, he says. The appeal of doughnuts is strongest in early mornings and in cooler weather, while ice cream attracts customers in afternoons and evenings, especially when temperatures rise. Baked goods are on the way, too, and these muffins and bagels will be distinctive enough to fit with the unique doughnut line, Morgan says. With elements like this, Morgan believes his plan for profitability and measured expansion will succeed, even in an unpredictable economy where raw material costs can gyrate dramatically. Growing up in Greenville, S.C., Morgan and a neighborhood playmate habitually stopped at a Krispy Kreme on trips uptown—to a YMCA facility. Back in the 1950s, he could get a doughnut, sometimes two, for 5 cents. Today, a dozen remains a reasonable $6 in most Krispy Kreme locations. “The economy doesn’t seem to be our enemy,” Morgan says. “We are an affordable indulgence. If you’ve had a bad day, maybe our doughnuts are a great way to treat your family without spending much money.” Yet the company whose board Morgan joined in 2000 fell precipitously far. Expansion-minded
chief executive Scott Livengood left under pressure and two star-quality turnaround artists—Stephen Cooper and Daryl Brewster—departed in the face of weak sales, fiscal losses and earnings revisions. Some franchisees declared bankruptcy. When Morgan took the helm in January 2008 and started commuting between his Charlotte home and an apartment in Winston-Salem, it was not his first experience with spiking sour performance. He’d steered regional investment banking and brokerage firm Interstate/Johnson Lane to a financial turnaround that led to its purchase by Wachovia Corporation in 1999.
“I’d love for Krispy Kreme to get to the point where helping others and making a difference in people’s lives becomes a visible and tangible part of our mission. In that sense, we’d be like the Y.” ~Jim Morgan Chairman, President and CEO
Company’s Decline A Classic Story Morgan calls Krispy Kreme’s dramatic decline a classic story. “With the wisdom of hindsight, it appears that they took on franchisees and grew too quickly,” he says. “There was even a time when they continued to do well in spite of themselves. Sales began to drop off and it became difficult to cover the fixed costs that had been built up in the aftermath of the successful openings.” Morgan joined the Krispy Kreme board a year after the company gained its listing on the New York Stock Exchange. Despite the fact that they had little choice at the time, he says, the firm probably never should have gone public because it’s much easier to run a company its size privately. So, at every opportunity, he’s operating Krispy Kreme as if it were a private company. “We’re trying to make decisions as if the
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only thing that matters is where we’re going to be years from now, not days, weeks or months,” he says. “We’re trying not to be a company that survives, but one that thrives and grows again.” Today’s Krispy Kreme still boasts a sizeable footprint. It’s in 37 states and 15 countries. The roughly 500 stores include about 90 that are run by the company, primarily in the southeastern United States. It has about the same number of domestic franchise stores. All its 250 international stores are franchised. Morgan wants to shrink the “footprint” of company-owned stores, but open additional stores under a new small store concept and continue growing franchisees in the United States and around the world. In 2009, Krispy Kreme will enter China, Malaysia and Turkey. Half of Krispy Kreme’s business is wholesale or, in company lingo, off-premises. This involves packaged products sold in groceries and convenience stores. The typical customer is a mom
“Our mission is to use this incredible brand called Krispy Kreme to make a difference in the lives of people we touch.” ~Jim Morgan Chairman, President and CEO
spots where the entire product is brought in from remote locations. These would fit best in places with high pedestrian traffic, such as Charlotte’s Overstreet Mall. buying for her family. For that market, Krispy Kreme is producing products with a longer shelflife, such as glazed honey buns. For the retail half, no profile fits. “Our typical customer is as diverse as you could imagine,” Morgan laughs. “All you’ve got to do is go to one of our stores and see who comes in. That’s part of the thing I love about it.” To help establish “world class” service, Krispy Kreme is setting up tools for franchisees to use in sharing best practices. These include special Web sites where they can communicate with each other and with management. Morgan hopes to see many more situations in which a 4,000-square-foot factory store, with doughnuts rolling off a cooking line, serves a growing number of nearby stores at 1,200 square feet or smaller. Most would still sport the red neon “Hot Now” sign that has become a Krispy Kreme signature. This small store concept is the cornerstone of the company’s longterm growth plans. A new innovation could be even smaller
Firm Operates In Unique Niche If Charlotte’s uptown did get a Krispy Kreme, it would be near a Dunkin’ Donuts shop in Fourth Ward. Morgan smiles as he explains why he feels little challenge from that chain. “Doughnuts are a small part of what Dunkin’ sells and a huge part of what we sell,” he says. “I look at Dunkin’ Donuts and Starbucks and McDonald’s as being in the coffee wars together. The beverage and various savory food items are the big draw.” Krispy Kreme has upgraded its coffee, he admits, but adds that he sees coffee as a complimentary product and not nearly the attraction of his company’s distinctive confections. “Nicely, we’ve got our own little niche,” he says. “I’m not sure we have a competitor.” Still, Krispy Kreme landed recently on an Internet list of 15 companies that might not survive 2009. Morgan’s eyes flash at that. “Nowhere does it say that we’ve paid off $40 million of debt in the last two years,” he says.
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“The last time we made a public statement, we had over $30 million in cash in the bank and the debt is only about $70 million now. “We were conspicuously silent as a result of that list,” he continues, adding that, “Over time our performance will speak for itself; I don’t think we’ll have to say a word.” That fits Morgan’s projection. He told the board his turnaround measures would take two years to produce tangible results. Now 61, he thinks he’d like to stay on after that happens, maybe until he’s 65. Until then, Morgan admits to another aspiration. It’s related to the 2002 shareholders meeting when the company was still riding high. Baseball Hall of Famer Hank Aaron visited that Winston-Salem session to celebrate the Krispy Kreme franchise he’d won for an economically challenged neighborhood in Atlanta. Aaron still has that store that provides employment—and role models—for its community. “I’d love for Krispy Kreme to get to the point where helping others and making a difference in people’s lives becomes a visible and tangible part of our mission,” Morgan says. “In that sense, we’d be like the Y. The company has a heart for that right now; it just doesn’t fully have the ability to do it yet.” biz Ellison Clary is a Charlotte-based freelance writer.
Krispy Kreme Doughnuts, Inc. 370 Knollwood St., Ste. 500 Winston-Salem, N.C. 27203 Phone: 336-725-2791 Principals: James (Jim) H. Morgan, Chairman, President and CEO; Douglas R. Muir, Executive V.P. and CFO NYSE: KKD Founded: 1937 Employees: Approximately 3,900 Revenues: $429.3 million (fiscal 2008; ended Feb. 3, 2008) Net Income: -$67.1 million (loss) (fiscal 2008; ended Feb. 3, 2008) Locations: Approximately 520 stores in the United States (primarily the Southeast) and 15 countries; of those approximately 90 stores are run by the company, all 250 international stores are franchised. Business: Branded retailer and wholesaler of more than 20 varieties of doughnuts including the hot Original Glazed doughnut. www.krispykreme.com
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[bizoutlook]
Regional Economic Analyses and Forecasts
North Carolina Could Begin Modest Recovery in Second Half of 2009 Credit Markets and Stimulus Package Critical Factors
N
orth Carolina may begin recovery from the economic recession as early as this summer, although the job front will remain bleak, according to UNC Charlotte economist John Connaughton. “We’re through the worst of it,” he says in his most recent economic forecast for North Carolina. “We’ve probably got another couple of months before it turns around.” The outlook is based on two critical factors: that banks begin making more John Connaughton, loans and the federal stimulus package puts more people to work. Ph.D. “The expectation is that the North Carolina economy should begin a modest recovery during the second half of 2009,” Connaughton maintains. “The recession, which began in January 2008, is expected to last at least six quarters. This would make the 2008-2009 recession the longest recession since the recession of 1982, which lasted 16 months.” 2008 GSP Review: The North Carolina Gross State Product (GSP) is expected to show a decline of 0.4 percent during 2008, which would follow a growth rate of 2.2 percent experienced during 2007 and bring to an end six years of steady economic growth in North Carolina. Annual Growth Rates In Real GSP 6 5 4 3 2
4.9
6.0
2.0
1 2005
2006
2007
-1.6
-0.4
2009f
2008
Year-End Seasonally Adjusted North Carolina Unemployment Rates 7 6 5 4 3 2 1
5.0 2005
4.7
5.0
2006
2007
8.8
8.1
2008
2009f
QUARTERLY GROWTH RATES IN Overall, the North Carolina economy is REAL GSP
expected to decline during three of the four 1 quarters in 2008. 1.0 0 -1.3 -1 “This recession, which-2.1 started in the resi-2 dential construction industry and spread to the -4.9 -3 financial sector has now spilled over to a num-4 ber of other sectors,” explains Connaughton, a 2008 I 2008 II 2008 III 2008 IVf professor of economics in the Belk College of Business. “Both manufacturing retail QUARTERLY GROWTH and RATES IN trade FORECASTED REAL GSP are feeling the effects of the overall slowdown, and 3have contributed to the state’s overall 2 decline and the significant drop in GSP during 1 2.0 1.8 the fourth quarter. 0 -0.7 -1 “Officially, -2.8 the recession began at the end of -2
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2009 III
2009 IV
December 2007 and is a direct result of both the mortgage meltdown and the dent in consumer pocketbooks caused by high gasoline prices during the first three quarters of the year,” Connaughton added. 2008 Employment Statistics: During 2008, the North Carolina economy lost 120,100 net jobs, a decrease of 2.9 percent over the employment level in December 2007. Nine of the state’s 10 nonagricultural sectors of the economy experienced employment declines during 2008. The sectors with the strongest employment declines in 2008 were durable goods at 8.9 percent, construction at 7.0 percent, and nondurable goods manufacturing at 5.7 percent. The unemployment rate in North Carolina for December 2008 was 8.1 percent, higher than the United States rate of 7.2 percent. 2009 GSP Forecast: For 2009, the North Carolina economy is expected to continue to decline, with real GSP dropping by 1.6 percent below the 2008 level. The declines in the first and second quarters of 2009 would combine with negative growth in the second half of 2008, for a total of four consecutive quarters of GSP decline. “The expectation is that the North Carolina economy should begin a modest recovery during the second half of 2009,” Connaughton said. “The recession, which began in January 2008, is expected to last at least six quarters. This would make the 2008-2009 recession the longest recession since the recession of 1982, which lasted 16 months. “The two most recent recessions were quite short,” he added. “Both the 1991 and 2001 recessions lasted only eight months each. We
are already in the 15th month of this recession.” TheAnnual outlookGrowth for a recovery the second Rates Induring Real GSP half6 of 2009 is based on two critical factors taking 5 place: the credit markets must begin to operate and4 money lending must take place, and the 6.0 3 4.9 fiscal 2 stimulus package must be quickly imple2.0 job losses that have 1 mented in order to stem -1.6 -0.4 plagued the economy since January of 2008. 2009f 2008For 2009, 2006 2005 2007 2009 Employment Outlook: North Carolina establishments are forecast to Year-End Seasonally Adjusted North Carolina lose 58,200 net jobs, a decrease of 1.4 percent Unemployment Rates below the 2008 level. In January 2009, the 7 6 North Carolina unemployment rate jumped to 5 9.74percent, well above the U.S.8.1rate of8.87.2 per3 5.0 cent. The5.0state unemployment rate is expected 4.7 2 1 to continue to increase during the first half of 2006year 2007 2009 2009 and2005 end the at more2008 than 10 percent. f QUARTERLY GROWTH RATES IN REAL GSP 1
1.0
0
-1.3
-1
-2.1
-2
-4.9
-3
-4 2008 I
2008 II
2008 III
2008 IVf
QUARTERLY GROWTH RATES IN FORECASTED REAL GSP 3 2
1 0
-1
-2
-2.8 2009 I
1.8
2.0
2009 III
2009 IV
-0.7
2009 II
Eight of the state’s 10 nonagricultural sectors of the economy are expected to experience employment declines during 2009. The sectors that are expected to display the greatest employment declines are mining, FIRE, and nondurable goods manufacturing. John Connaughton is professor of economics in the Belk College of Business at UNC Charlotte and director of the UNC Charlotte Economic Forecast published quarterly by the University of North Carolina at Charlotte since 1981. The full UNCC Economic Forecast (March 17, 2009) is available at www.belkcollege.uncc.edu/forecast.
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Photos: Sander Gibson
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by casey jacobus
[bizlife]
Coming Home
TO THE MOUNTAINS High South Realty Provides Scenic Retreat
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he beauty and tranquility of the North Carolina mountains appeals to many who spend their days in the stressful offices and on the crowded highways of the Charlotte metropolitan area. Whether they dream of spending their vacation in the cooler temperatures of the mountains or owning a second home, many city dwellers are looking north for the privacy and peace of mind that the mountain’s natural beauty and wooded seclusion can provide. While Asheville and Black have long been destinations for those wishing to escape the heat of a Piedmont summer, the area of Alleghany, Ashe, Avery and Watauga counties, collectively referred to as the High Country, has recently grown in popularity. “We have the same cool temperatures,” says Lisa Randolph, one of the owners of p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe
High South Realty and broker-in-charge of the Ashe County office. “But the prices are much more reasonable and the commuting time is shorter. You can get the same temperature for half the cost.” The High Country also rivals its better known destinations for both natural beauty and outdoor activities. Everything from fishing, biking, hiking, kayaking, whitewater rafting, canoeing, to skiing and golf can be found there and the Blue Ridge Parkway offers miles and miles of views of the beautiful Blue Ridge Mountains across North Carolina, Virginia and Tennessee. With a population of only 25,000 people, Ashe County offers privacy to those who seek it, while recent economic development in the area has brought more businesses, restaurants and arts activities to the charming downtown area of West Jefferson. # ap r i l 2 0 0 9
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Selling the High Country High South Realty is a growing company, manned by brokers experienced in mountain real estate and eager to help clients make their dream of owning “a bit of Paradise” come true. High South is dedicated to “bringing people home to the mountains.” Recognizing a need for cross-county access, the company is a member of the multiple listing services (MLS) of four counties in North Carolina and one in Virginia. It also has two brokers licensed in Tennessee. “We want to have a broad range of scope,” says Marketing Director Stacey Gibson. “We’re a one-stop shop for anyone looking for property in southwest Virginia or northwest North Carolina.” The company opened a second office in Damascus, Virginia, last summer, expanding its regional reach. This winter it began publishing a monthly High South Realty Magazine, which is distributed in six different counties. Intended as a resource for people living in the mountains or looking for property, it contains informational articles as well as photo and quote contests, event calendars, and area attractions. “We strive to do the best we can to promote the area in a positive way,” says Randolph. “We want to go ‘above and beyond’ to spread the word about what a wonderful place this is to live.” Randolph’s love affair with the High County began when she was a child and her grandparents bought a summer home there. After visiting from Florida, her parents moved to the mountains when Randolph was only seven. She grew up in Ashe County, leaving it to attend East Carolina University and then Queens College in Charlotte, but moved back in 1999. Randolph now resides in West Jefferson with her husband, Tim, and two young children. Growing up in Ashe County, Randolph developed a special love and appreciation for the area, the people and the community. “Outsiders are shocked at how nice people are up here,” Randolph asserts. “Everyone waves to each other and people go out of their way to be friendly. They look out for each other.” Randolph’s knowledge of the area, combined
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with her natural people skills, propelled her into a career in real estate. After working for Century 21, she accepted the role of broker-in-charge at High South Realty, attracted by the challenge of growing a new business. She believes the two characteristics that help make a great realtor are honesty and integrity. “With me, it’s not about doing whatever it takes to make a sale,” she says. “It’s about making sure my clients are comfortable and happy. If they are not happy, then I’m not happy.” Randolph is molding High South Realty into a company which emulates her dedication, professionalism and willingness to go above and beyond the expected. High South Realty’s number one focus is on residential property, although the company handles some commercial property as well. In addition, the company manages a thriving rental vacation business. Owning a Bit of Paradise Since taking the helm at High South, Randolph has focused on growing the rental program, believing that people who visit the area for a short time will want to return and buy a place of their own. High South has a listing of houses that rent either short-term or long-term, ranging from small one-bedroom cabins to large houses that sleep 12 or more. There are houses in town, on the top of mountains, or on the river. From time to time the company runs various specials to help attract renters. “When renters turn into prospective buyers, they have a lot of choices to make”, says Randolph. “Everyone says they want seclusion and privacy,” she adds, “but you have to get a feel for the type of seclusion they really want. How far do you want to be from a gas station? A grocery store? Do you get sick on winding roads? Do you own a 4-wheel drive? Do you want to be near skiing? On the water? Have a view?”
“We strive to do the best we can to promote the area in a positive way.We want to go ‘above and beyond’ to spread the word about what a wonderful place this is to live.” ~Lisa L. Randolph Co-owner and Broker-in-Charge
Tara and Teddy Coffey had to answer these questions when they began looking for a mountain retreat for their young family. As the Charlotte commercial banking director at Wachovia/ Wells Fargo, Tara works long stressful hours in Charlotte. Teddy has a background in land development and construction and is an avid hunter. They live in a popular subdivision in Huntersville with six-year old twin boys. “We wanted it all,” says Tara. “We wanted property that Teddy could hunt on; we wanted a long distance mountain view; we wanted water access; we didn’t want to be close to a road; we wanted topography we could build on; and we wanted to keep it affordable.” They quickly learned they had to make compromises. Being on the water usually meant sacrificing a long distance mountain view; spectacular views often came with building challenges; and the price range of property was somewhat bewildering. After looking all over North Carolina from Asheville to the Tennessee border, they found 30 acres with an unfinished log cabin in Ashe County. Two years later they are thrilled with their mountain home. “It’s a complete escape from the everyday world,” says Tara. “It’s so easy to go for a weekend; it’s a pretty, easy drive of two and a quarter hours. The house is small, so we really spend
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range views, picturesque log cabins and breath! taking pastoral settings. Opportunities abound to picnic, hike, and look Upper inset map shows for wildflowers. Birding is the area of North Carolina typically another favorite activity. referred to as the High In addition to all the Country, encompassing outdoor activities to enjoy the counties of Ashe, Alleghany, Avery and in Ashe County, visitors Watauga. The High often stop in at the Ashe Country extends into County Cheese Company adjoining states of Virginia and Tennessee, in West Jefferson or the as indicated by the map Todd General Store, or below, showing the take in the Churches of territory covered by High South Realty and the Frescoes. Ben Long, RUSSELL its two offices. Virginia an Italian-trained artist, SMYTH WASHINGTON SCOTT Damascus, VA painted three frescoes LEE GRAYSON Jefferson, NC ALLEGHANY at St. Mary’s Episcopal Tennessee ASHE Church in West Jefferson WATUGA North Carolina and another at Holy TrinAVERY ity Episcopal in Glendale Springs. quality family time there. I could not be happier; Two wineries offer tours and wine tasting: it’s fantastic for my family.” Thistle Meadow Winery in Laurel Springs, and While Tara believes Ashe County is “less the New River Winery in Lansing. More than discovered” than other mountain locations, she a dozen art galleries and specialty shops line says there are fun things to do in every season the streets of West Jefferson. Colorful wall-size and plenty to keep her family occupied. Many of murals are scattered throughout the downtown those activities center around the New River and West Jefferson area, in addition to the historic the Blue Ridge Parkway. Ashe Arts Center, which also functions as an art gallery. A Scenic Retreat Ashe County is located in northwestern “Outsiders are shocked at North Carolina among the Blue Ridge Mounhow nice people are up here. tains. It borders both Tennessee and Virginia. The New River forms in Ashe County and is Everyone waves to each other one of only 14 American Heritage Rivers in the and people go out of their way United States. In 1998 a 26.5 mile section of to be friendly. They look out the New River in Ashe County was designated a for each other.” National Scenic River. Formed before the uplifting of the Appala~Lisa L. Randolph chian Mountains, the New River is second only Co-owner and Broker-in-Charge to the Nile as the oldest river in the world and it also flows north. Because of shallow, gentle The Ashe County Arts Council has also waters, the New River is ideal for canoeing, brought together members of the community to kayaking and tubing, while the opportunity for design, paint and mount quilt block paintings occasional minor rapids adds a bit of excitement on barns throughout the county. The treasure to the trip. The New River is also recognized for hunt begins with help of a brochure pinpointing its sport fishing. Smallmouth and redeye bass the locations of the 17 barn quilts, available at swim in is waters and trout fishing is excellent in the Arts Center in West Jefferson. the smaller, faster tributaries. The Blue Ridge Parkway is one of the most Looking Ahead impressive national parks in the nation. Referred Although operating a realty company in to as “America’s Favorite Drive,” the Parkway is today’s economic downturn might sound like a one of only 23 roads nationwide to have earned risky proposition, Randolph believes the future All-America Road status. For more than 30 is promising. miles, the Blue Ridge Parkway crosses the ridges “We are promoting the area very aggresof Ashe County, showcasing spectacular long sively,” she says. “We are continuing to do a lot
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Sparta
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Jefferson
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McGrady
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21
18
Beech Mountain
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421
19E
321
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Burnsville
Spruce Pine
Love Valley
16
Taylorsville
Lenoir
Sawmills
shall
Morganton
Marion
64
Valdese
21
Stony Point
19
Weaverville
Yadkin
Wilkesboro
105
Newland
Bakersville
Elkin
Mulberry
Boone
60
40
Hickory
70
Asheville Black Mountain
L. Norman
16
74
77
321
18
220
13
85
77 7
15
158
258
95
158
Winston-Salem
109
158
32
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401
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85
Durham
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21
R.
301
311
oke
501
Roan
52
601
Rocky Mount
64
40
Raleigh
Cary
64
13
64
40
L. Norman
441
74
19
221
77
15
321
264
421
17
301
85
26
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23
Greenville
301
North Carolina
64
129
Gastonia
Charlotte
Neus
13
52
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401
70
95
276
258
64
Fayetteville
15
64
220
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74
12
601
Jacksonville
701
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40
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of regional advertising. And, our phones are ringing. People may not be in a position to buy now, but when they are, they will remember our name and the property they’ve seen.” In addition to regional advertising and the company’s own magazine, Randolph sees that High South Realty plays an active role in the community. The company has sponsored the local Relay for Life, and was a contributor to this year’s Triangle Heart Ball in Raleigh and supports the local Sharing Center with donations of food and blankets. This winter High South bought space heaters and donated them to families in need. It also sponsored 20 children at Christmas, providing gifts of toys and food. Randolph is a member of the Chamber of Commerce and works closely with the local Homebuilders Association. “You have to work twice as hard in this economy,” Randolph advises. “But, if we stay focused and take care of our clients, the hard work will pay off.” Within the near future, Randolph believes the economy will improve and High South Realty’s business will grow dramatically. “I see it exploding,” she asserts. “I expect we’ll open another office, perhaps in Tennessee, and our staff will double, or even triple. In this business, it’s all about reputation. Word of mouth is very important.” biz Casey Jacobus is a Charlotte-based freelance writer.
High South Realty, LLC 522 South Main Street P.O. Box 1443 Jefferson, N.C. 28640 Phone: 336-846-1818; 877-846-1818 Principals: Lisa L. Randolph (Jefferson), Norman and Linda Hughes (Damascus); Owners/ Brokers-in Charge Offices: Jefferson, N.C. and Damascus,Va. Territory: Ashe, Avery,Watauga, and Alleghany Counties in N.C.; Lee, Scott, Russell, Washington, Smyth and Grayson Counties in Va.; Johnson County in Tenn. Employees: 15; brokers are local with substantial experience and licensed in N.C.,Va. and Tenn. Business: Full-service realty company located in the scenic Blue Ridge Mountains specializing in mountain property; residential, land, commercial and investment properties, in addition to a vacation rental program; publishes monthly real estate magazine; has EcoBrokers specially licensed concerning environmental issues. www.highsouthrealty.com
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J. Donald Keen Founder and Co-owner Sanford (Sandy) May President Dilworth Coffee
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by janet kropinak
[bizprofile]
!"#$%&'"()*$
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Dilworth Coffee Brews Freshness and Familiarity
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t started with many bad cups of coffee. During college Don Keen had tried just about every brand, but in distaste and dissatisfaction he was left convinced that there should be more to it. It wasn’t until he traveled to Europe that he truly discovered coffee and what it was supposed to taste like. “I quickly found that it wasn’t coffee I didn’t like, it was how it was being brewed that didn’t appeal to me,” he explains. That revelation was the catalyst for the chemical engineer and international sales rep for Celanese Corporation (since retired) to launch Dilworth Coffee. From day one, Don and his wife Alyene made it their passion to be a quality provider of fresh roasted gourmet coffee in the Charlotte marketplace. Today, they are Charlotte’s oldest independent roaster and wholesaler of coffee and coffee products, operating two coffeehouses, and serving the area’s most discriminating coffee drinkers since 1989.
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Brewing a business Charlotte was a different city when Dilworth Coffee opened its doors 20 years ago. “For starters, there wasn’t a single Starbucks,” Keen, now 71, remembers. “People weren’t familiar with coffeehouses; they weren’t part of our culture they way they are today.” For some time, the Keens had toyed with the idea of opening a boutique coffeehouse that roasted its own beans. Then in 1988, a business opportunity presented itself when a local coffee shop, Coffee Exchange, began to struggle financially. Keen attributes it to a bad location uptown and business plan. “I got some great advice from a banker who said ‘Wait until they go out of business and buy their assets,’” he recalls. The advice paid off. “After we bought the company, the first thing we did was move the store to a better location,” remembers Keen. That location was East Boulevard in Dilworth. Although the neighborhood wasn’t nearly the community it is today, they saw it as a charming place with infinite potential. #
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In 1989 they roasted the first batch of Dilworth Coffee. “We were immediately embraced by the community,” Keen says. “So by the time Caribou Coffee opened a few years later, followed by Starbucks, we already had a strong customer base in place.” “We quickly learned that people were willing to pay a premium for hand-crafted beverages,” says Keen. “But that being said, they wanted only the freshest coffee.” A few years later the Keens seized an opportunity to open a second location uptown. Although the store was only in operation for five years, the experience showed Keen that there was indeed a market to expand the Dilworth Coffee brand. Ideas of expansion were made easier in 1993, when Sandy May, a regular to the coffeehouse, joined the Dilworth Coffee team. “I was fortunate to have an opportunity to learn all aspects of the business—from setting up a store—the retail and wholesale side of things—as well as the art of roasting,” May remembers. As Keen describes it, May “emerged as a leader” and began taking on larger responsibility within the company. Today he serves as president and has an ownership stake as well. In 2002, the Keens were approached by the Belks about opening a location in their store at SouthPark Mall; a year later the store opened
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to much success. Over the years business has expanded, with demand calling for more products than they could produce with the roaster at the East Boulevard store. So they moved their roasting operations to a warehouse in South End, which also became the corporate headquarters and training center. On a typical day, 1,000 pounds of coffee can be roasted, which is then distributed to stores and other customers. To maintain freshness, coffee is roasted every Monday through Thursday and distributed within hours.
“People trust our name as a provider of quality products,” explains Keen. “Having a trusted name behind a new business can help tremendously when breaking into the market.” Today, the company still owns the East Boulevard and SouthPark Mall locations, while the 12 other store locations are individually owned and licensed. In addition to supplying coffee for their stores, Dilworth Coffee sells its products to many neighborhood restaurants and shops, such as Amelie’s French Bakery in NoDa, Pike’s Old Fashioned Soda Shoppe, Nova Bakery in Plaza-Midwood, and Alice Jule’s Coffeehouse in Monroe. In total, they have over 150 wholesale clients.
“We quickly learned that people were willing to pay a premium for hand-crafted beverages. But that being said, they wanted only the freshest coffee.”
Taste is king When asked what makes their coffee different from that of their competitors, Keen answers quickly and resolutely, “Taste and quality.” “Our goal from the very beginning was to bring the quality of European coffee here to Charlotte,” he continues. “And I think we’ve succeeded in doing so.” Keen explains that he founded the company on the principles that freshness rules and taste is king and maintains that achieving superior taste is a science in itself. And this science he says “starts with the bean.” Keen and May strive hard to find the best beans on the market, which often involves traveling. Keen tells of trips to Mexico, South America, and Europe—all, which he says, were part of the learning process. “We’ve spent extensive time studying the different regions across the globe and the growing processes for different beans,” explains Keen. Dilworth Coffee is assisted in this process by special coffee brokers who bring them beans from different regions which they then test in-house. “We are looking for beans we can get the most out of,” Keen says. “Our goal is to roast every bean to peak flavor.” And how is this achieved? “Trial and error,” May says with a smile. “They only way to find the right coffee is taste evaluations. It can be a long process— but it’s a fun one.” Keen says over the years they’ve learned to match their coffee with what they feel best matches the Southeastern taste bud, which he describes as going for flavor above the burnt taste popular in areas like the Pacific Northwest. Dilworth’s coffee is high in flavor and intended to be drunk without any added extras, namely sweeteners. “You lose the purity of the coffee when you add to it,” May insists. When asked about a favorite flavor, May refers to the Morehead Estate, which he says is drinkable all day long. Keen also boasts about their
~Don Keen Founder and Co-owner
With the roaster and two locations, it became apparent to Keen that they could expand the wholesale side of the business, whereas they were limited in manpower on the retail side of the business. The answer: Keen, together with May, put together a licensing program for independent owners looking to become a Dilworth Coffee location. The program helps the business owners get operational and allows them to use the Dilworth Coffee brand as a launching pad for their business.
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Here is the coffee plant, an evergreen that prefers tropical climates, showing the coffee “cherries” in different stages of maturity. The darkest cherries are ready to be picked. Once picked, the peticarp (outside shell) is removed, producing a bean which appears cream colored.The beans are then fermented for a short period of time to remove a further layer termed parchment. Removing the parchment yields a jade-green bean, ready for roasting. Coffee flavor begins to deteriorate immediately following roasting, so it is important for the product to be distributed for use.
anniversary blend as “rich, complex, and balanced.” Adding to the unique experience and superior quality offered at Dilworth Coffee is the fact that each beverage is hand-crafted—meaning there are no super automatic buttons or machines in the shops. “We are following the traditions of espresso etiquette, which states a 25-second pour for each drink,” Keen says proudly. “We got serious about espresso about 10 years ago and have made it a large part of our business. Its success comes from our attention to the details.”
“The pressure is on to be really good—every cup. And that is what keeps us motivated to get it right, and to keep getting better. We are proud and passionate about the products we sell and we are conf ident that you can taste the difference.” ~Don Keen Founder and Co-owner
“It is the harder way to do things, but it forces us to be better,” May adds. “We are going the extra step and the market is responding.” Coffeehouse culture A visit to the neighborhood Dilworth Coffee shop is more than a freshly roasted cup of coffee; its a comfortable respite and a place of familiarity and neighborhood feel. Each shop has a loyal following with many customers working visits into their weekly and sometimes daily routines. All locations offer free Wi-Fi and some feature local acoustic musicians from time to time. “We’re a gathering place,” May offers. “And each store has its own feel, from the décor to their ability to customize for their particular neighborhood.” “But they all share the same guarantee for great quality,” Keen adds. At each location you will find a menu of core products, like the company’s signature flavors and blends, which May says accounts for 80 to 90 percent of the each store’s business. These days Dilworth Coffee’s menu features
20 to 25 small batch-roasted coffees. Additionally, they supply a full compliment of products such as syrups, powders and sauces needed to make the company’s core products. “We invite creativity from the store owners,” says May. “Although each store offers store specific specials, you can always rely on the quality behind the Dilworth Coffee brand and customers appreciate that.” “I was drawn to Dilworth Coffee because they were a local company,” remembers Colleen O’Grodnick, who has owned and operated the Mint Hill shop for three years. “The product is fresh and something I can get my hands on without worrying about shipping. I like what they stand for, and find that our philosophies align.” Upon becoming a Dilworth Coffee licensee, owners and employees undergo extensive training. “We make sure they are expert by the time their doors open,” says Keen. May and Keen work particularly with the baristas (coffeehouse jargon for those entrusted with the preparation of espresso-based coffee drinks), encouraging them to be craftsman as opposed to order takers. “We hold barista competitions along with public and private training sessions,” May describes. “These events help to elevate awareness and develop the barista culture.” Although the national chains seem to be struggling with the current economic downturn, Keen and May have noticed little more than a slowdown in new business startups and view it as an opportunity to expand market share. Unlike the contractions of their competitors, they’ve maintained their market presence, pointing to the newest Dilworth Coffeehouse which recently opened in Ballantyne Village. While they aren’t shy about growing the brand, May and Keen say the company will continue in its natural expansion. “We shoot for 10 percent annual sales growth,” discloses May. “And we are proud to say we’ve met that percentage growth 18 out of the past 20 years.” Currently, Dilworth Coffee can be found throughout North Carolina and South Carolina and recently expanded into Georgia. “North and South Carolina make sense for us because they are in our backyard,” May explains. “Eventually, we hope to expand the brand throughout much of the Southeast, and the way things are
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taking shape, we are well on our way.” Acknowledging the slowdown as offering with it certain challenges, May also says that it is giving them insight into what is most important to their customers—quality. “The marketplace is a little softer, but people are still coming in the door,” he explains. “We aren’t losing customers, but we are seeing customers trading down on the size of their orders. What we are learning is that people aren’t willing to give up that good cup of coffee.” “Which means that right now, the pressure is on to be really good—every cup,” Keen says. “And that is what keeps us motivated to get it right, and to keep getting better. We are proud and passionate about the products we sell and we are confident that you can taste the difference.” biz Janet Kropinak is a Charlotte-based freelance writer.
Just Coffee, Inc. dba
Dilworth Coffee Roastery,Training Center and Offices 2400 Distribution Street Charlotte, N.C. 28203 Phone: 704-554-7111 Principals: Donald J. and Alyene S. Keen, Founders and Co-owners; Sanford (Sandy) May, President (Minority Stockholder) Founded: 1989 Wholesale Accounts: Over 150 Operations: Roastery, warehouse, training center and offices on South Boulevard; retail location East Boulevard; retail location SouthPark Mall Licensees: 12 independently owned locations in North Carolina, South Carolina and Georgia Awards: “Charlotte’s Best Coffee,” 2008 Best of the Best Awards, Charlotte Magazine; Dilworth Coffeehouse East Boulevard named “Best Coffeehouse,” Creative Loafing Business: Charlotte’s oldest independent roaster and wholesaler of fresh roasted gourmet coffee and coffee-related products; operates two retail coffeehouses; certified organic roasting facility which sources select beans from around the world and small batch roasts to highlight each coffee’s natural flavor. www.dilworthcoffee.com
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[employersbiz]
Legislative and Regulatory Highlights for Area Employers
EMPLOYER ALERT:$ BCD-)$B",'A#1
Increasing employees’ take– home pay at no cost Employers can increase their employees’ take-home pay at no cost by giving eligible employees part of the Earned Income Credit (EIC) with their pay, and then subtracting those payments from their payroll taxes, through the Advance Earned Income Credit (Advanced EIC). The EIC is a refundable credit for certain qualified workers, intended to help offset some of the increases in living expenses and Social Security taxes. This credit reduces the amount of tax owed, and may result in a refund to the taxpayer. Eligible employees can receive part of their EIC in their paychecks instead of waiting until they file their tax returns. To be eligible for AEIC payments, an employee must expect to have a qualifying child and fall within certain income limits. (I.R.S. Publication 15, Circular E, Employer’s Tax Guide; I.R.S. Publication 596, Earned Income Credit; and I.R.S. Form W-5, Earned Income Credit Advance Payment Certificate.)
!
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Answers to TEA Hotline’s Most FAQs The Employers Association’s HR Advice Hotline receives calls from regional employers on a wide variety of topics. Some of them relate to the same or similar situations are experienced by numerous organizations. Below are the “stock” answers to some of the most frequently asked questions. •There is no federal law that requires private-sector employers to provide employees access to their personnel files. Some states have laws permitting access, but North and South Carolina do not. However, employees must be provided access to their medical file if requested. •The Pregnancy Disability Amendment Act of 1979 does not require an employer to grant a paid leave of absence to a pregnant female. It does require that her illness be treated “the same way” as all other illnesses or injuries. •Employment-at-will is still a widely recognized concept in employment law. Without a contract of employment, employers have the right to terminate an employee for any reason, or for no reason, assuming that there is no discrimination or public policy exception. Likewise, employees have the right to resign at any time, for any reason or for no reason. Employers should have a well-worded and widely communicated policy, should eliminate references to permanent employees, “just cause”
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terminations, and all other references that can be construed to imply an employment agreement. Employers are strongly advised not to use employment-at-will as a sole reason for termination. •All employers have the right to expect regular attendance and satisfactory performance from all employees and can enforce corrective and disciplinary measures if they so choose. Direction of the work force and establishment of policies and rules are functions of management that do not have to be negotiated with employees absent third-party representation. In addition, employers may dictate specific dates and times that employees must use paid vacation or paid-time-off. •There is no requirement to keep unsolicited resumes. However, if not disposed of, they must be maintained for the same length of time as those received through solicitation (at least one year). •A company’s liability for harassment in the workplace is not limited to just sexual harassment by employees. “Illegal” harassment includes disability, racial, religious, sexual, or any other harassment related to a “protected” characteristic and is pervasive as to prevent an employee from performing his or her job. Additionally, the company is responsible for the acts of visitors, vendors, applicants, customers, and suppliers in the workplace.
•There is no federal law that requires employers to provide a break or meal period. If breaks are provided, the Fair Labor Standards Act does provide guidelines on how they be paid. Break periods of 20 minutes or less should be paid. Meal periods need not be counted as time worked, provided the employee is completely relieved of his/her duties for at least 30 minutes. •The IRS-approved mileage allowance for work-related travel for 2009 is 55 cents per mile. There is no requirement that employers reimburse employees for workrelated mileage. •Even though someone is considered a salaried employee, they may not be exempt from overtime provisions of the Fair Labor Standards Act (FLSA). Determine whether an employee is exempt or nonexempt according to the Fair Labor Standards Act (FLSA.); salaried, nonexempt employees may not be docked and must be paid overtime. (TEA) The Employers Association provides comprehensive human resources and training services to a membership of over 865 companies in the greater Charlotte region. For more information, please call Laura Hampton at 704-522-8011 or visit www.employersassoc.com.
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Awards & Achievements Charlotte has been named the second ‘manliest’ city in the U.S., according to a study conducted by Sperling’s BestPlaces. Rankings were based on such criteria as the number of professional sports teams, popularity of tools and hardware, and frequency of monster truck rallies. The Bureau of Transportation has named Charlotte Douglas International Airport among the nation’s top 10 airports in passenger numbers. Passenger numbers from January-October 2008 moved CLT to the 9th spot, up from 14th in 2007. Advertising & Media Walker Marketing, Inc. has acquired Lynn Grayson as a senior public relations account manager. Karen Ponischil, founder and co-partner of Moonlight Creative Lynn Grayson Group, has been selected to chair the public relations committee for the 2010 North Carolina Quilt Symposium. Business & Professional The 2009 Law360 Litigation Almanac has identified the ERISA practice of Smith Moore Leatherwood LLP as one of the nation’s ten busiest. The 2009 listing of The Best Lawyers in America Lawyers of the Year includes attorney Larry B. Sitton, who was named Charlotte Best Lawyers Bet-the-Company Litigator of the Year. Russell M. Robinson II, founding partner of Robinson, Bradshaw & Hinson, has been named Charlotte Corporate Lawyer of the Year by Best Lawyers. Brent A. Torstrick, a commercial real estate attorney with the firm, has been named Charlotte Real Estate Lawyer of the Year. Russell Robinson Best Lawyers has named Parker Poe attorney Harvey L. Cosper Jr. Charlotte Best Lawyers Personal Injury Litigator of the Year for 2009. Cynthia Block-Taylor, a financial professional with the Charlotte branch of AXA Advisors, LLC, has earned the AXA Advisors Centurion Award for outstanding sales achieveCynthia Block-Taylor ments. Distribution Technology has received the Third-Party Distribution Center of the Year 2008 award for the second consecutive year from Sam’s Club. Littler Mendelson’s Charlotte office has elevated Angela Cummings to shareholder status. Coastal Federal Credit Union has promoted
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[ontop] Ken Mellette to Charlotte market executive. Cogdell Spencer Inc. has promoted Matthew Nurkin to president of the Mid-Atlantic region of Erdman. Ameritrust Mortgage has Matt Nurkin added David Oshan as chief financial officer. Steve Gatter has joined Charlotte-based LB4G Consulting, Inc. as vice president business development. Judith Ancelli has joined Steve Gatter professional coaching firm Rich Campe International, LLC as financial manager.
Sean DeLapp
Construction & Design Sean P. DeLapp has been promoted to vice president and principal at WGM Design, Inc. Benjamin Ward has joined BJAC as an intern architect.
Education & Staffing Dr. Zbigniew W. Ras, a full professor of computer science who has taught at UNC Charlotte since 1979, has been honored with the 2009 Harshini V. de Silva Dr. Zbigniew Ras Graduate Mentor Award. Christopher Dyer, a junior computer information systems major at Pfeiffer University, has earned the CompTIA A+ Certification. Chris Dyer CEO Inc. has been recognized as one of the top 50 diversity-owned businesses and one of the top 100 women-owned businesses in the state of North Carolina by DiversityBusiness. com. Phillip Van Poole has joined the company as government and business partnership collaboration executive. A. Michelle Fish, founder and CEO of Integra Staffing & Search, has been named by The Mecklenburg Times as one of Charlotte’s 50 Most Influential Women of 2009. The firm has also ranked No. 1158 on the Inc. 5000 list. Tiffany Randolph has been named general manager of the Kennedy Academic Learning Centers in Charlotte. Catawba College has hired Tiffany Randolph Lois Williams as vice president of enrollment.
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301 S. McDowell St., Ste. 502, Charlotte, NC 28204 704.371.5000 • www.danielratliff.com
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[ontop] Finance & Insurance Larry W. Carroll, CFP, CMFC and B. Kelly Graves, CFP, of Carroll Financial have been named on Barron’s listing of 1,000 great advisers in the U.S. A.M. Best has ranked Dixon Hughes 20th among top audit firms for the insurance industry. Matt Snow has been named managing member of the Charlotte office. Janette Jones of the Thompson Financial Group has been nominated for the firm’s Achievement Award. Kianga Coleman has received the firm’s 2008 Staff Award. Elliott Davis, LLC has promoted Kay Biscopink to principal, Edy Cail and Melanie Harmon to tax managers, Stephanie Atkins to audit manager, Caitlin Steelman to tax senior, and Annieka Philo to audit senior. Jeff Kendall has joined Karp Financial Strategies as a wealth advisor. Government & Nonprofit United Way of Central Carolinas has named Gene Pridgen, administrative partner with K&L Gates L.L.P., regional campaign cabinet chair and Curt Fochtmann, managing partner with Ernst & Young L.L.P., regional campaign cabinet vice-chair. Brad Howard will lead fund-raising efforts in the Mooresville-Lake Norman region; Jon Yancey will do so in Cabarrus County. Duke Energy Corporation, Concrete Supply Company, TIAA-CREF, and the YMCA of Greater Charlotte have been awarded Spirit of North Carolina for Campaign Excellence awards, the most prestigious award handed out by United Way North Carolina. The Boy Scouts of America’s Good Turn Scouting for Food drive collected a record 127,539 pounds of food. Scouting for Food Health Care Crystal Health Care Services has hired Felicia Bookert as office manager. Debra Plousha Moore has been appointed to the top human resources position at Carolinas HealthCare System.
Debra Moore
Real Estate Commercial/Residential Allen Tate Company has named Mike Ransom unit manager of its net relations division. Trinity Partners has hired Rhea DeJesus as an
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[ontop] office leasing agent. Rodney Arndt and Crystal Williams have joined the sales staff WEICHERT, REALTORS Rebhan & Associates. Retail & Sports & Entertainment Elaine Greenberg, owner of Ageless Remedies in SouthPark, has been nominated for the National Association of Women Business Owners Rising Star of the Year award in Charlotte. Park Inc. has ranked No. 3383 on the Inc. 5000 list of fastest growing private companies. Smith Turf & Irrigation has received the Distributor of Excellence award from The Toro Company; they were also recognized with the Best in Irrigation distributor award for 2008. Kimberlee Hughes has been promoted to general manager of Donald Haack Diamonds & Fine Gems. Dr. Patrick Connor, head Kimberlee Hughes team physician for the Carolina Panthers, has been named president of the NFL Physiciansâ&#x20AC;&#x2122; Society. Michael Byars has been named president and CEO of BI-LO, LLC.
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Technology WebsiteBiz has ranked 688th on the Inc. 5000 list of fastest growing private companies nationally. David Zimmerman has joined the David Zimmerman firm as campaign manager. Customer Connect Associates has named Matt Wittemann as its chief operating officer. Peak 10 Inc. has added Mark Whetstone to its management team. NouvEON has appointed Steve DeSutter as director of sales. Diona Kidd, vice president of Knowmad Technologies, has been selected to serve on the marketing committee for the board of directors of the Civic and Cultural Arts Center of Pineville. Tourism Henry Dennis, a AAA Vacations travel consultant in Charlotte, has earned the designation as a Private Jet Specialist by TCS Expeditions. biz To be considered for inclusion, please send your news releases and announcements in the body of an e-mail (only photos attached) to editor@ greatercharlottebiz.com, or fax them to 704-6765853, or post them to our business addressâ&#x20AC;&#x201D;at least 30 days prior to our publication date.
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[bizbits] RECESSION LESSONS
Common Management Mistakes
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Managing employees is never easy, but it poses a particular challenge when teams are lean and the economy is uncertain. Robert Half International’s recently released guide, The 30 Most Common Mistakes Managers Make in an Uncertain Economy, outlines prevalent pitfalls and how to avoid them. #Thinking your staff can’t handle the truth. Now is the time to treat employees like business partners. Talking openly about the effect of the downturn on your firm can help staff members feel they have some measure of control. #Blaming those at the top. If you’re inclined to tell employees that you would have done things differently, but the choice wasn’t yours, it sends the message that you are out of sync with the company’s leaders, which may be disconcerting to staff. Instead, present changes and the reasons behind them, including how your firm will persevere. #Feeling people are lucky just to have a job. It may be true that many employees feel fortunate to have a stable position, but this doesn’t mean managers can ignore staff members’ desire for positive recognition and career support. Top performers, in particular, require extra attention; not only are their contributions especially critical now, but they are always attractive targets for competitors. #Not asking for employees’ help in expanding client relationships. Ask staff members to think about things they can do to help achieve business goals without sacrificing productivity. #Making work “mission impossible.” Hiring freezes and tighter budgets may mean that less people are doing more of the work. Help your employees identify which projects are mission-critical. Outsource remaining tasks or put these items on hold. #Shifting the focus from the front lines. Client service matters even more when times are tough. Make sure your front-line professionals have the right attitude and send the right messages. #Waiting to try new things. Playing it safe can backfire. If you have a promising new service offering or client niche you want to pursue, take well-calculated risks. You can get a jump on competitors and possibly carve out an additional revenue stream. (Robert Half International: www.rhi.com)/30Mistakes)
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[bizbits] Strategies for Layoff Survivors Many professionals have felt the shock of layoffs during these difficult times—including those who have kept their jobs. According to administrative staffing firm OfficeTeam, employees who survive corporate downsizings often must manage heavier workloads and stay motivated while worrying that their jobs could be eliminated next. Layoff survivors often experience guilt about being the ones who stay while also working in an environment marked by uncertainty. Professionals who are spared from layoffs should not pretend it’s business as usual. Instead, they should work closely with their managers to ensure their workload reflects company priorities and try to stay positive. OfficeTeam offers these tips for rebounding after company layoffs: ! Make yourself indispensable. Focus your efforts on projects that help boost your firm’s bottom line. ! Build visibility. In uncertain times, it’s important to be noticed for the right reasons. ! Adapt to change. Managers appreciate employees who can roll with the punches and maintain productivity when faced with adversity. ! Conduct an audit. Now is the time to be nimble. Evaluate current processes and offer suggestions for cutting costs or saving your company time or resources. ! Avoid the rumor mill. While increased rumors are inevitable after layoffs, avoid contributing to the gossip and don’t believe everything you hear. ! Be generous with praise. After downsizing, employees may begin to doubt their abilities and question their own future with the company. ! Reach out. Offer assistance to those who have experienced a job loss by introducing them to your professional network and helping them with their job search. ! Look out for yourself. Layoff survivors often experience increased workloads, which can lead to burnout. Talk to your manager about setting priorities, delegating projects or bringing in temporary professionals. It is important that workers be aware of the realities of their organizations. Those who think their job may be in jeopardy should focus on reactivating their professional networks, taking stock of their skills and accomplishments, and putting together a strong resume. (OfficeTeam: www.officeteam.com)
©2008 Galles Communications Group, Inc.
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[bizbits] CHARLOTTE CFOs FORECAST INCREASE IN SECOND-QUARTER HIRING The hiring of full-time accounting and finance professionals in the Charlotte area is expected to increase in the second quarter of 2009, according to the most recent Robert Half International Financial Hiring Index. Seven percent of chief financial officers (CFOs) surveyed plan to add staff during the quarter and 6 percent anticipate reductions in personnel. The net 1 percent increase is up seven points from the areaâ&#x20AC;&#x2122;s first-quarter 2009 forecast and three points above the national average. The local results reflect a two-quarter rolling average based on interviews with 200 CFOs from a stratified random sample of companies in the Charlotte area with 20 or more employees; 1,400 CFOs were queried for the national data. (Robert Half International; www. rhi.com; www.roberthalf.com/PressRoom)
STAYING UP IN A DOWN ECONOMY
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In a recent interview, Chief Marketing Officer Barry Judge of Best Buy offered some insights on how the company plans to stay up in a down economy: Start by focusing your highest-value customers. Theyâ&#x20AC;&#x2122;re easy to segment, and their enthusiasm for your product or service means theyâ&#x20AC;&#x2122;re more likely to continue as a reliable source of revenue. At Best Buy, we can identify them through our database and loyalty programs, so we can target offers, communication, and investment directly to them. Then zero in on segments to which you can offer a strong value proposition for musthave items. In our industry, some products have become consumer necessities (e.g., cell phones, PCs) and therefore may be more resilient during times when consumers pull back their spending on more discretionary items. Finally, invest your efforts in areas with genuine growth potential. For example, unemployed workers tend to start up small businesses during a recession and create demand for small business IT products and support. The Point: Leading companies do not subscribe to the common misconception that marketing is a discretionary expense. They know that there is business opportunity during economic downturns, and marketing can lead the way: With smart marketing they stay on top and often capture more market share during a recession. (www.marketingprofs.com/small-business)
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Š 2009 NACE Marketing, New York, All Rights Reserved.
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