Wu r t h Wo o d G ro u p
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L . A . M a n a g e m e n t C o m p a ny
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Wo r k i n g S i m p l y
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Capital Guardian
january 2010
Clear
VISION UNC Charlotte Stakes Its Claim
Philip L. Dubois Chancellor University of North Carolina at Charlotte
CHANGE SERVICE REQUESTED 5601 77 Center Dr., Ste. 250, Charlotte, N.C. 28217
PRSRT STD U.S. Postage PAID Permit No. 505 Charlotte, NC
in this issue
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u
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cover story
University of North Carolina at Charlotte
UNC Charlotte’s “Stake Your Claim” branding campaign makes clear its value and emphasizes its vision to be the state’s urban research university. Chancellor Phil Dubois has a host of academic enhancements he’d like to achieve as part of a UNC Tomorrow blueprint of System President Erskine Bowles. He’s enthusiastic about what the school is and what he believes it will become.
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Würth Wood Group
His considers his customers cowboys and he likes his own independence, but Roger Debnam also is a people person, nurturing employees and encouraging them to advance. Perhaps that’s the secret to success not only for him, but for the Charlotte-based woodworking company he leads as president.
16
L.A. Management Company
Lou Amico’s company is known for its video and event production, Web development and Internet marketing. He and his partner Joe Zammit can do as much today with $15,000 of hardware, camera equipment and software as a commercial New York production— and do it faster and less expensively.
!"
Working Simply
Carson Tate is building a powerful reputation as a change agent in our increasingly chaotic business and personal lives. She revolutionizes organizational efficiency by assessing, analyzing and reengineering process flow, organizing and optimizing physical space, and providing time and task management solutions.
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departments publisher’spost legalbiz
4 5
bizhealth
7
bizxperts
8
Transforming the Business of Law to Meet the Needs of Business Making Healthy Work and Lifestyle Choices Smart Salvos, Select Strategies and Succinct Solutions
bizmarketing
10
employersbiz
11
bizoutlook
39
bizbits biznetwork
40 43
Maximize Marketing; Magnify Impact Legislative and Regulatory Highlights for Area Employers Regional Economical Analyses and Forecasts
on the cover:
•
L . A . M a n a g e m e n t C o m p a ny
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Wo r k i n g S i m p l y
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Capital Guardian
january 2010
Phillip L. Dubois Chancellor University of North Carolina at Charlotte
Clear
VISION
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Philip L. Dubois Chancellor University of North Carolina at Charlotte
Capital Guardian
This Belmont-based Southeastern investment brokerage and wealth management firm has no proprietary products, but prides itself on its “open architecture,” allowing investment advisors the freedom to do business upon an unlimited platform with the benefit for the investor as its only driving force.
Wu r t h Wo o d G ro u p
Photography by Wayne Morris
UNC Charlotte Stakes Its Claim
YEARS
2000 - 2010
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[publisher’spost] 704-676-5850
Making the Most of the Next Decade The first decade of the 21st century was not one of the most productive or stellar 10 years in the short history of the United States. While we witnessed the rapid technological transformation of our economy, we also experienced the bursting of the irrational exuberance of the stock market, the dot-com bubble, and the housing bubble. We were shocked by the events of 9/11 and the corporate scanJohn Paul Galles dals, as well as the collapse of our banking system and the Great Recession. And, on top of all that, we declared war on terrorism and find our country still engaged in wars in Iraq and Afghanistan. It was not a good start for the next century. While we cannot take a mulligan as we might on the golf course, we can and must learn from our experiences and do better. The next 10 years will offer us many new opportunities, and we are quite capable of creating our own opportunities at the same time. In fact, the greater Charlotte region is well positioned to take maximum advantage of economic growth in the next decade. Most immediately in 2010, the United States undertakes a census of its population. The results of that census will dramatically affect the greater Charlotte region, as well as the states of North and South Carolina, as political boundaries are shifted or added to recognize population growth. For the first time in the history of North Carolina, a majority of legislators will reside in just 14 counties while less than half of our legislators will reside in the other 86 counties. As a result, urban priorities will become more important and rural priorities will become less important. Over the next decade, the University of North Carolina at Charlotte student population will grow from 24,000 students this year to over 35,000 students in 2020. As North Carolina’s major urban research university, UNC Charlotte will play a significant role in support of area economic development and business advancement. It will deliver more degrees at the bachelor, graduate and doctoral level than ever before. Chancellor Dubois and the UNCC staff and faculty are doing all they can to develop talent for our economic recovery and growth. We are also blessed with many other universities supporting our future development. The Research Park in Kannapolis and the Research Institute on the UNCC campus are poised to lead business advancements well into the future. Our community colleges have also grown exponentially with the ever-increasing number of displaced workers especially in this great economic recession. President Zeiss and the faculty at CPCC and neighboring community colleges are stretched in many different directions to prepare workers for their next jobs or careers. Bank of America and Wells Fargo/Wachovia as well as BB&T, SunTrust, Fifth Third and our independent banks are increasingly competing for business opportunities in this region. That is good for business. Duke Energy and the growing energy cluster establish the Charlotte region as a leader and a catalyst for energy and technology advancements. Highly efficient, low-cost energy is an essential and important factor in attracting and growing business opportunities in this region and the Carolinas. Our airport with its third runway, the completion of the I-485 beltway and the expansion of our light rail system will make Charlotte even more attractive to companies seeking to relocate or expand into this region. And if you want to relax and enjoy life, Charlotte offers easy access to the mountains and to the oceanfront in addition to four seasons and blue skies, great whitewater and nature activities, and an unusually robust array of cultural and arts experiences. Charlotte is more attractive than ever for business growth and development. Let’s take full, purposeful and responsible advantage of the next decade and make our future rewarding and bright. biz
Let me know what you think - jgalles@greatercharlottebiz.com
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January 2010 Volume 11 • Issue 01 Publisher John Paul Galles x102 jgalles@greatercharlottebiz.com
Associate Publisher/Editor Maryl A. Lane x104 mlane@greatercharlottebiz.com
Creative Director Trevor Adams x103 tadams@greatercharlottebiz.com
Account Executives sales@greatercharlottebiz.com Marsha Bradford x106 Dave Cartwright x107 Bradley Jackson x107 Sandra Ledbetter x106
Contributing Writers Ellison Clary Susanne Deitzel Zenda Douglas Casey Jacobus
Contributing Photographers Wayne Morris Trevor Adams 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 2010 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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Wishart Norris Henninger & Pittman
Wishart, Norris, Henninger & Pittman, P.A.
AT T O R N E Y S AT L AW
[legalbiz]
Transforming the Business of Law to Meet the Needs of Business
[
]
If you sell gift cards or certificates. . .
New rules regarding prepaid products (like gift cards) have been proposed by the Federal Reserve. The rules are not effective yet, but they should become law at some point in 2010. The rules propose limits and require disclosures with regard to any fees or expiration dates on prepaid products. Also, these rules will represent only the minimum requirements you must meet. Each state may have stricter standards. For example, both North Carolina and South Carolina have laws already in place with regard to required disclosures, fees and expiration dates. The rules may catch you by surprise if you do not specifically address expiration dates and any other rules about how the gift card or gift certificate may be used. For details, you should consult your legal advisor.
Smoking NO Rules in January Remember, effective January of 2010 in North Carolina, smoking in enclosed areas is prohibited in restaurants and bars (with an exception for “cigar bars”).
SMOKING
!COLLEGE FOOTBALL PLAYOFF ACT OF 2009 Are you tired of arguing the pros and cons of the current Bowl Championship Series (BCS) methodology for crowning a national champion? Help may be on the way! A bill was introduced in the U.S. House of Representatives last January to prohibit the use of the term “championship or national championship game” unless the game was the result of a single elimination playoff system. The bill finally made it out of subcommittee in December and is up for a full committee vote. Stay tuned!
!I know you’re eating, but. . . It happens. You don’t have time to grab some lunch on your break because you have to take care of “it.” Whatever “it” is—from being available to answer the phone, to continuing to work the line, to meeting that last-minute deadline—you have worked through lunch to do it. But, were you paid for it? When dealing with overtime issues, employers must be able to track employees’ breaks to be sure that those breaks are not time spent working. Under the Fair Labor Standards Act, for an employee to be on break and not be paid, the employee must be completely relieved of any and all work duties. If the employee is not completely relieved of his or her work duties, even if the employee did not do any work but had to be available to do work (like answering the phone if needed), the time spent “on break” is time for which the employee must be paid. Employers must be cautious as working through breaks can create overtime for employees with “normal” 40 hour workweeks. Train your employees and supervisors how to track working time so you do not get surprised later in a government audit.
Can you believe they did that at the party?
! Your business had a stressful, but still profit-
able, year. You chose to have a small holiday party in December outside the office as a reward for the employees and a chance for them to let off some steam. The facility served alcohol and inhibitions lowered. Although the party did not get out of hand for most of the crowd, many employees noticed Bill and Barb getting especially “friendly” and behaving inappropriately toward each other for a work-related setting. Bill is married, but not to Barb. Barb is Bill’s indirect supervisor. Now the water cooler is awash in rumors and speculation. Ears are burning this January. Neither Bill nor Barb has made any complaint to anyone. In fact, they have not spoken about the party. They have also never before expressed any inappropriate behavior toward each other and have behaved appropriately since the party. Unfortunately, many holiday parties and work settings in general can result in these types of dilemmas for management. In this case, your business conceivably has a sexual
harassment issue or claim, but no one has made a formal or even informal complaint. If you do nothing about it, you could be seen as condoning the behavior. If you do something about it, others may accuse you of blowing it out of proportion and creating problems. Also, the rumor mill can be difficult to stop. As the boss, should you do anything? The short answer in most cases is that inappropriate behavior and misconduct of any sort must be addressed by management. Failing to address misconduct of any kind increases the likelihood of it happening again. It also increases the potential liability of the employer for such behavior, especially when a supervisor is behaving inappropriately toward a subordinate. In possible sexual harassment issues, management may have a duty imposed by applicable federal and state laws to investigate and address the issue. Failing in such duty can result in significant liability for the business should a harassment, discrimination or other claim be filed at a later date. The real issue for management is not whether to address the misconduct, but to determine the
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
~Eric Bass
appropriate response. Is an investigation warranted? Should a verbal or written warning be given? Should an employee be fired? Should training or counseling be required for the employees involved? Should the entire office receive training? The response will depend heavily on the facts of the situation. If you, as a manager, have one of these situations, please seek guidance from your attorney or human resources counsel. In any case, you MUST have a written anti-sexual and other unlawful harassment policy published to your employees. You should also provide some training on the policy to your employees and review the policy for needed updates on a regular basis. Most importantly, the policy should be enforced when needed. Otherwise, the employer loses all the benefit of having such a policy. And the rumor mill continues. Wishart, Norris, Henninger & Pittman, P.A. partners with owners of closely-held businesses to provide comprehensive legal services in all areas of business, tax, estate planning, succession planning, purchases and sales of businesses, real estate, family law, and litigation. For more information, please call Robert Norris at 704-364-0010 or visit www.wnhplaw.com.
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5
[bizhealth]
[
!ORAL & CARDIOVASCULAR HEALTH Fact: People with gum disease are twice as likely to have a heart attack or stroke. Numerous studies have shown that a link exists between heart disease and periodontal disease. The common denominator is that both are inflammatory diseases. One possible explanation is oral bacteria attaching to fatty plaques in the heart blood vessels resulting in the possible formation blood clots. Blood clots restrict the heart from functioning properly by impeding the flow of blood which can lead to a heart attack or stroke.
!COLORBLINDNESS Colorblindness is described is as the inability to distinguish between colors such as red and green or blue and yellow. " In most cases, colorblindness is hereditary
!GOING GREEN: GREEN TEA’S HEALTH BENEFITS
" 7 percent of American males are colorblind
It has long been said that green tea is useful in protecting against certain types of cancer. Made from unfermented leaves, green tea contains an abundance of polyphenols which is a type of antioxidant. These polyphenols hunt for agents known as free radicals that can damage or alter cells and can possibly lead to the development of cancer.
" There is no treatment or cure for inherited colorblindness
There are many scientific studies that indicate green tea is also helpful in fighting against other ailments such as atherosclerosis, diabetes and high cholesterol. There are even claims that green tea aids in weight loss, though this particular proclamation lacks substantiating medical evidence. Despite this fact, many consumers and health professionals can agree that there is little harm in having a cup of green tea.
" Cataracts can cause color deficiency " Some countries prohibit people with colorblindness from driving
!"#$%&'(&)* !FAD DIETING $ Overweight?
$ Need to get in shape and lose weight? $ Want to do it quickly?
TRY A FAD DIET… WRONG!
Unfortunately many Americans turn to fad dieting to get the results they want quickly, desiring a fast fix to a problem that takes years to create. People want an easy solution to fix a difficult problem. Unfortunately, there is not a healthy way to lose weight quickly. The answer to losing weight is to eat less and work out more. What does that mean? In order to lose weight, the calories you burn per day needs to exceed the calories you take in. Your daily expenditure of calories (i.e., walking, talking, exercise) has to be more than what you put in (i.e. breakfast, lunch, dinner). It sounds relatively easy; the hard part relies on the fact that you must do this in a healthy fashion. Not eating and over-exercising is detrimental to your health, so it is important to avoid both these extreme measures. You have to strike the right balance of adequate nutrition and a healthy active lifestyle. Fad diets are a “cookbook” for weight loss and people are driven to fad dieting for its relative ease. Unfortunately, the results that can be achieved with it are limited to say the least. Even though fad dieting can lead to sudden weight loss, it is difficult to maintain. In fact, it is relatively impossible to stay within this “cookbook” diet over time. Once the diet plan is abandoned, the weight gain is sometimes more than the original weight.
The solution is to make a lifestyle choice for overall wellness. A healthy lifestyle puts you in charge of your own health. Not only do you decrease the likelihood of acquiring multiple diseases such as high blood pressure, diabetes and obesity, but you will also feel better and increase your energy level. Here are some tips to put you on track towards a healthy lifestyle.
Healthy Eating: "#Incorporate fruits, vegetables and whole grains into your meals. Fruits and vegetables are rich in vitamins and minerals that are important for proper growth and development and warding off illnesses. "#Bake rather than fry your lean meats, poultry or fish. Baked food items are low in fat content. "#Drink plenty of water. Not only does water keep you hydrated but it has many health benefits including ridding the body of waste and regulating your overall body temperature.
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
"#Avoid skipping meals. Not eating not only slows down your metabolism, but it deprives your body of the nutrients it needs to function properly.
Exercise: "#Try walking at least 20-30 minutes per day "#Sign up for a water aerobics class "#Ride a bike "#Do muscle strengthening activities such as lifting weights, push ups or sit ups The amount of exercise needed depends on the individual and it is best to consult your doctor before beginning any exercise regimen, especially if you have a medical condition. Once the decision has been made to change your lifestyle, you must form a strategy that is appropriate for your current state of health. With the appropriate consultation, this strategy can lead to a new way of life that will allow you to maintain appropriate health and wellness for a lifetime. And thus, the weight loss that is achieved is maintained forever. This is not a fast cure to the problem, but an easy one that is permanent. The first step is to make the plunge, put yourself in charge of your own health, and make the lifestyle choice for overall wellness. Good health is sure to follow. ~Dr. Bill Kortesis, The Hunstad Center CharlotteDrs.com facilitates the active sharing of information between consumers and doctors by providing comprehensive health and wellness resources including: research on health and wellness topics, articles written by local experts, online forums and discussions, and community events and career listings. Become an advocate for your own health and visit www.CharlotteDrs.com.
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7
[bizXperts]
()
Smart Salvos, Select Strategies and Succinct Solutions
six tips for crucial conversations !
Crucial conversations are those that you have from time-to-time with employees, family members, vendors, suppliers, and friends. Substitute the word “confrontational” and you get an entirely different perspective. Many of us tend to avoid confrontational conversations for many reasons: lack of time; lack of resources (no easy place to have them); lack of skill or training (to have the Bill Crigger conversation); and the most common reason, fear. When we think about these awkward conversations, our mouth gets dry, our eyes hurt, and we get a headache, sweaty palms and feel sick to our stomach. To prepare yourself for crucial, confrontational conversations, consider the following questions and tips: Know thyself first. What is your purpose for the conversation? What is working or not working? Which expectation is not being met? And what should the outcome look like when you have finished the conversation? Check your ego and feelings at the door. What are your personal issues, prejudices and biases that may get in the way of a non-emotional, candid conversation? We all have hot buttons. Know the confront-ee. Put yourself in his/her shoes. How will he/she react? What excuses may come up? What are his/her circumstances? What are his/ her needs and fears? Does he/she tend to behave in a confrontational style?
"#$!%&'#
Move away from confrontation. How could the problem have been avoided? What role did others play? Were expectations clearly defined and by who? Have you contributed to the problem in any way? Are there any common concerns and/or areas of commonality? Determine the approach. Determine the approach or style of the conversation. Common approaches include: Inquiry: wanting to learn what is known by the parties and their reaction to the situation; Response: you understand the issue, their position; explain to them your expectations, your positions and how they can help. Clarification: Both sides have expressed their positions; clarify your position by summarizing what they have told you (reflective listening) and how you can see their position and how the issues may be addressed. Problem Solving: solicit ideas and suggestions for improvement or change; look for feasible and realistic compromises. There is no simplistic approach to confrontation conversations. These conversations should never be easy. But a well thought out approach and plan, that is practiced before it goes to real time, will minimize your butterflies, sweaty palms and fears. Bill Crigger is president of Compass Career Management Solutions, a career transition and human resource consulting firm. Contact him at bcrigger@ compasscareer.com or visit www.compasscareer.com to learn more about crucial confrontational conversations.
new online technologies for 2010 !
New online technologies will play increasingly important sales and marketing roles for businesses and retailers in the coming year. With more prevalent adoption of advanced mobile phones, eBooks, wireless notebooks and intelligent GPS devices, users now remain constantly connected to the Internet regardless of time or location. To keep up and take advantage of this new level of Kip Cozart connectivity in the marketplace, leading businesses are adding innovative new communication tools to their day-to-day marketing strategies. Think “Marketing On-the-Go.” On-Demand Coupons… Big changes are on the way for traditional coupon distribution and redemption. Businesses will be able to promote and capture last-minute, impulse buying opportunities by offering digital coupons available for immediate download right inside the store. Mobile phone web browsers and plug-in applications allow customers to retrieve verbal passcodes or scan-compatible barcode images for quick, convenient redemption whenever needed. The same methodology applies to administering “reward card” programs, granting customers the ability to carry an unlimited number of electronic redemption cards without the need to carry numerous plastic cards. Online coupons can also be restricted for single-use distribution using QR (Quick Response) barcode technology that generates unique identification patterns for each coupon and deactivates the individual coupon once the specific pattern is scanned. Further, Web-based
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discount offers can be automated, anticipating shifting demand based on the time of day, day of the week, GPS location, current weather conditions and other factors. Voice Command Interaction… Voice-activated search, as featured on Apple iPhone and Google Android phone, is rapidly expanding how and when customers locate and exchange information online. Many browser-based applications “read” printed text out loud and support basic speech-oriented commands such as “yes/no,” “next,” “send” and “call.” No longer tethered to a visual display, touch screen, mouse or keyboard, users may more easily access and purchase services while they are on the move. This will impact how information is presented within your Web site. Consider adding a pre-recorded narrative or an audio/visual blog to help promote your products. Promotional Text Messaging… Text messaging is going “commercial.” Bypassing traditional e-mail clutter, smart businesses are also offering to push critical information to consumers using basic text messaging. Usually, broadcast texting campaigns have a better chance of being read and will reach consumers more quickly. While businesses must first secure permission from recipients, text messages drive higher customer response rates. Consider offering customers the option to receive ongoing service alerts, exclusive discount offers, and breaking news directly through their texting devices. Kip Cozart is CEO of CC Communications, a Web design, programming and Internet media company. Contact him at 704-543-1171 or visit www.cccommunications.com/bizXperts for more information about emerging online technologies.
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]
locks have their limits !
Employees are one of the most important factors to your business’s success. Without competent and motivated employees your businesses would not exist. Essentially, this requires you to believe that your employees are individuals of integrity who are inherently truthful and honest. Luckily most people are hard-working individuals who deserve your trust and it goes without saying that you would not deliberately hire an employee who was dishonest.
The adage, “Locks are meant to keep honest people honest,” captures a significant dilemma associated with employees—establishing the appropriate mix of oversight and trust. But the adage, “Locks are meant to keep honest people honest,” captures a significant dilemma associated with employees—establishing the appropriate mix of oversight and trust. The Association of Certified Fraud Examiners’ 2004 Report to the Nation on Occupational Fraud and Abuse estimated that the average organization loses about 6 percent of annual revenues to occupational fraud, which translates into approximately $660 billion in annual fraud losses, if multiplied by the 2003 U.S. Gross Domestic Product. The Association identified three types of occupational fraud and abuse. The first type is asset misappropriation (theft or misuse of assets), i.e. theft of cash, inventory and other assets, submitting false invoices, abuse of leave. The second type is corruption, where an employee wrongfully uses influence in a business transaction to procure some benefit for himself or herself or another, contrary to their duty to their employer (includes conflicts of interest, bribery, and economic extortion). The final type of fraud and abuse is fraudulent financial reporting. Additionally, studies have identified three elements that are usually present when an employee commits fraud: the individual perpetrating a fraud has an incentive or is experiencing actual or perceived pressure to commit it, he or she is presented with the opportunity to commit it, and he or she adopts an attitude rationalizing it. It is possible then, given current economic conditions, that an increased number of employees could be experiencing actual or perceived pressures that motivate them to justify “dipping into the till.” So, instituting reasonable measures to ensure that your employees perform their tasks in accordance with policies and procedures that assure your company’s success are necessary and prudent. Internal controls are those activities meant to ensure your business operates efficiently and effectively, safeguards its assets, produces reliable
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
financial reporting and complies with applicable laws and regulations. Studies have determined that maintaining strong internal controls is the best deterrent to employment fraud. However, establishing the specific type or number of controls to impleJohn Blair Steve Johnston ment to safeguard your company’s assets, unfortunately, is as much art as science. A few controls are self evident. For example, you would not leave substantial amounts of cash unattended on your desk when, a simple but effective control for cash is to limit access to it by storing it in safe to which one or two individuals have the combination. Of course if you wanted to make it more secure, you could encase the cash in a block of concrete and drop it in the Marianas Trench in the Pacific Ocean. Understandably, not many people would go to the trouble of retrieving the cash. Yet it would be equally difficult for you to use that cash in your business. The art of internal controls then is selecting those controls that provide reasonable protection of your assets while allowing you to carry on your business. Fortunately, you don’t have to start from scratch in designing internal controls. An integrated framework has been developed for establishing internal controls for your business by the Committee of Sponsoring Organizations (COSO), a voluntary private-sector organization. In addition, most CPA firms have a thorough understanding of this framework and also have the expertise to help you develop an appropriate system of internal controls for your business. It is important to note that the COSO framework emphasizes the importance of creating a control environment based on the integrity, ethical standards and competence of the business owner; it points out that doing so sets the tone of your organization, influences the control consciousness of your people, and is the foundation for all other components of internal control. Rarely do employees receive guidance as to what is expectable at work exclusively from a policies and procedures manual. Most often, the conduct of others and especially the business owner influence an employee’s conduct while on the job. So, be mindful that your ethical standards disproportionately influence your employees’ behavior and accordingly being an ethical individual is important to the success of your business; because locks have their limits. Steve J. Johnston is an assurance partner and John D. Blair Sr. is a managing partner at Blair Bohlé & Whitsitt, PLLC., a CPA firm that provides accounting, assurance, tax compliance and planning services, strategic planning and tax minimization strategies to privately held business in addition to assurance and consulting services to governmental and nonprofit entities. Contact them at 704-841-9800 or visit www.bbwpllc.com.
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[bizmarketing]
Maximize Marketing; Magnify Impact
A bo w o r To C Something
ut Actions Readers Took or Plan to Take as a Result of Exposure to Specific Magazine Ads Consider purchasing the advertised product or service
ACCOUNTABILITY: MAGAZINES GET RESULTS Magazine Advertising and Editorial Get Readers to Act !More than half—56%— of readers took action on magazine ads or had a more favorable opinion about the advertiser because of magazine advertising, according to the latest research from Affinity’s VISTA Print Effectiveness Rating Service. !An analysis of Affinity data over the past four years shows magazine advertising recall and action-taking have increased during this time. !Similarly, more than two out of three—68%—readers took action based on editorial content. The research shows that magazine engagement goes far beyond just “feeling”—it prompts consumers to act.
12
Gather more information about advertised product or service
12
Visit the advertiser’s website
11
Visit a store, dealer or other location
9
Purchase the advertised product or service
8
Save the ad for future reference
7
Recommend the product or service to a friend, colleague or family member 5 Took any action (net)
Saved article for future reference
29%
Passed article along to someone
24
Gathered more information about the topic
15
Visited a related website
12
Took any action (net)
68
Source: Affinity’s VISTA Print Effectiveness Rating Service, 2008
Actions Taken or Plan to Take in Response to Magazine Advertising nonpaid
by percent pass-along
total readers
Consider purchasing the advertised product or service
21%
19%
20%
21%
Have a more favorable opinion about the advertiser
12
11
11
12
Gather more information about product or service
12
12
12
12
Visit the advertiser’s website
12
10
11
11
Visit a store, dealer or other location
9
8
8
9
Purchase the advertised product or service
9
7
8
8
Save the ad for future reference
7
6
7
7
Recommend the product or service Took any action (net)
56
Actions Taken as a Result of Reading Specific Features/Articles
Readers Value and Respond to Magazines Regardless of How They Acquire the Magazine
paid
21%
Have a more favorable opinion about the advertiser
5
5
6
5
57
55
56
56
Base: Actions taken based on respondents recalling specific ads Source: Affinity's VISTA Print Effectiveness Rating Service, 2008
Magazine Advertising Recall
Magazine Ad Effectiveness Continues to Grow !Magazine effectiveness hit an all-time high in 2008. !Two measures of ad effectiveness for magazines—ad recall and actions taken as a result of seeing an ad—both continue to grow, according to Affinity’s VISTA Print Effectiveness Rating Service. !Ad recall has increased by 6% over the past four years !Action-taking (based on readers recalling specific ads) increased by 10%.
2005
53% 100
2006
53% 100
2007
55% 104
2008
56% 106
Magazine Advertising Actions Taken 2005
51% 100
2006
51% 100
2007
54% 106
2008
The Magazine Handbook 2009/10 is a comprehensive guide compiled by the Magazine Publishers of America concerning magazine readership statistics, trends, and comparative analyses to other media. More information at: www.magazine.org/handbook.
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56% 110
Note: Actions taken based on readers recalling specific ads. Source: Affinity’s VISTA Print Effectiveness Rating Service, 2005 – 2008
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THE EMPLOYERS ASSOCIATION Trusted HR Advice, Tools & Training
• •• Laid-off •••
Legislative and Regulatory Highlights for Area Employers
Workers' Health Care Coverage COBRA Subsidies
As of this past December 1, many of the millions of laid-off workers and dependents who received federal subsidies to help pay for health care coverage lost those subsidies and likely joined the ranks of the uninsured, according to a recent report issued by the consumer health organization Families USA. Those subsidies—which were started last March by the American Recovery and Reinvestment Act (ARRA) but were made available for only nine months—enabled millions of laid-off workers and dependents to afford so-called COBRA premiums needed to continue health coverage from their previous employer. Under the ARRA, the federal subsidies paid 65 percent of the cost of COBRA premiums. Nationwide, the federal subsidies for COBRA family coverage average $722 per month. Without subsidies, the report finds, nationwide COBRA premiums for family health coverage will cost laid-off workers, on average, $1,111 per month—83.4 percent of the average ($1,333) monthly Unemployment Insurance (UI) checks they receive. For the first recipients, who began receiving subsidies in March 2009, the subsidies expired on November 30, 2009. For those who started receiving subsidies after March, the expiration is nine months after their start-up date. “When workers lose their jobs, they often lose their health coverage as well,” explains Ron
Cell Phone / Driving Policy
[employersbiz]
Pollack, executive director of Families USA. “For millions of laid-off workers and their families, the federal COBRA subsidies have been a healthcoverage lifeline. It is essential, therefore, that new jobs legislation extends those subsidies.” Pollack notes the pending health reform legislation that would enable laid-off workers and their families to obtain health coverage through a newly created marketplace, called an “exchange,” and families with low incomes would receive tax-credit subsidies to help pay the premiums.
According to the Families USA report, average monthly family COBRA premiums vary quite significantly from one state to another—ranging from $979 in Idaho and $989 in Iowa to $1,232 in Minnesota. The report also indicates that average monthly UI checks vary substantially from one state to another. The two states with the lowest average UI benefits are Mississippi ($839) and Alabama ($903), and the two states with highest benefits are Washington ($1,826) and Hawaii ($1,808). In nine states, the average family COBRA
premium exceeds the average UI benefit. In Mississippi, for example, the average monthly unsubsidized family COBRA premium is 22.4 percent higher than the average monthly UI check: The average family COBRA premium in the state is $1,027, while the average monthly UI check is $839. The eight other states in which the average family COBRA premium exceeds the average UI check are: Alabama ($1,005 vs. $903); Alaska ($1,209 vs. $1,032); Arizona ($1,111 vs. $941); Delaware ($1,209 vs. $1,125); Florida ($1,147 vs. $1,010); Louisiana ($1,013 vs. $968); South Carolina ($1,090 vs. $1,061); and Tennessee ($1,112 vs. $975). “Extending the federal COBRA subsidy is a critical, immediate measure to protect recently laid-off workers and their families,” emphasizes Pollack. “For the future peace of mind of working families, however, it is important to pass health care reform so that nobody has health coverage taken away when he or she switches jobs.” Any extension of the COBRA subsidy program will also likely make the subsidies available to newly-unemployed individuals. Under the current program, people who lost their jobs after December 31, 2009, do not qualify for the subsidy. The Congressional Budget Office and Joint Tax Committee estimated that approximately 7 million adults and dependent children would receive the COBRA subsidy in 2009. The Treasury Department is compiling data about how many workers received the subsidy, but a count of the people benefiting from the subsidy is not yet available. (Families USA; www.familiesusa.org)
Effective December 1, 2009, it became unlawful for any motor vehicle operator to text message while driving. Employers should alert their employees who drive of this change in the law and update their cell phone/driving policy along the following lines:
Driving While inTEXTicated
SAMPLE CELL PHONE POLICY If you are driving a vehicle (personal or company vehicle) on company business, you MUST use a headset (or other hands-free device) while using your cell phone. Calls made while using hands-free devices should be made only when necessary and kept as brief as possible. If use of a hands-free device is not possible, you are expected to pull off of the road to a safe area before using your cell phone / radio. It is unlawful for any motor vehicle operator to text message while driving. Employees who travel for business are obligated to learn and
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comply with any laws restricting cellular phone use while driving in the states where they travel. Compliance with all local, state, and federal laws is required. Any ticket or citation received while operating a company vehicle will be sole responsibility of the employee. Team members found at fault in a collision may be required to pay all or a portion of the cost of repair and/or subject to disciplinary action including termination. The Employers Association provides comprehensive human resources and training ser vices 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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Roger H. Debnam President Würth Wood Group Inc.
H
is customers can be what he calls cowboys and he likes his independence, but the president of Würth Wood Group also is a people person, nurturing employees and encouraging them to advance. He’s also hypercompetitive. Perhaps that’s the secret to success not only for Roger Debnam, but for the Charlotte-based woodworking company he leads as president. It certainly helped him climb the corporate ladder, from a territory salesman to the company’s sales manager. Then, when Charlotte Hardwood Center sold to German conglomerate Würth Group in 1999, Debnam became vice president of the newest American acquisition, Würth Wood Group Inc., and eventually president. “My philosophy is that we talk to our employees about running the company like it’s their own business,” says the straight-forward Debnam.
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“We are very transparent,” he continues. “We share our financials with management at all our locations. And we are very competitive. We look for that spirited drive in every hire.” “I don’t believe in organization charts,” he adds. “In my mind, a chart says ‘I’m the guy.’ Quite honestly, our people are ‘the guys’. My job is to support them. That’s how we run the business. “We roll up our sleeves and do whatever needs to be done. I’ve driven a truck a forklift and I’ve cleaned the toilets” he says. “I want our people to see what I do and I want to understand their challenges firsthand.” It’s an approach that has worked for the supplier of lumber and plywood, surfacing products, finishes and specialty hardware. From Baltimore to Ft. Lauderdale, Würth Wood Group is a leader in distribution of raw materials to manufacturers of custom cabinets, furniture, store fixtures, and millwork.
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by ellison clary
[bizprofile]
NURTURING LEADER Würth Wood Chief Listens To And Helps Employees
“Our industry is what I call the last bastion of cowboys. There are a lot of people who are entrepreneurs and don’t like working in an office. They like doing things with their hands. It’s kind of a dying breed.” ~Roger Debnam
President
The company serves commercial customers that may be building bank teller counters or grocery store checkout islands. Just as likely a customer is a subcontractor building custom cabinets for a homebuilder or a high-rise office developer. Or Würth Wood might supply those constructing a hospital expansion. Further, at its 14 locations in seven states it maintains retail centers, or pickup stores, that cater to woodworking enthusiasts. These are frequented mostly by craftsmen—people doing small woodworking projects or maybe even more complicated remodeling work in their home. Though relatively few people are aware of these centers, they are pulling their weight in the financial slowdown. Marketing manager Scott Sittler is determined to enhance their profile and increase their share of this business.
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The Last Bastion of Cowboys “Our industry is what I call the last bastion of cowboys,” Debnam says. “There are a lot of people who are entrepreneurs and don’t like working in an office. They like doing things with their hands. It’s kind of a dying breed.” “Our value proposition,” Debnam says, “is that pretty much from soup to nuts, you can buy everything you need to do your project from our company.” Verifying that is Keely Grice, owner of Grice Showcase and Display Manufacturing, Inc., also based on Charlotte’s west side. He’s known Debnam for 20 years and counts him as a friend. Grice’s company performs commercial and retail upfits and is big in store planning and design for jewelers. %
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As the Debnams nurtured a family that grew to two daughters and a son, he progressed through several companies, owning part of one. They were always related to the construction industry.
“The company itself is phenomenal,” Grice says of Würth Wood Group. “We couldn’t have a better business relationship. And it’s not just the quality of the product, but also the talent of the staff.” That speaks to Debnam’s concentration on culture. “Our people are fantastic,” Debnam says of the 60-plus employees in Charlotte and the 269 system wide. “They’re good at sharing their ideas, which I think is key for growth. We don’t want management that is always pushing down. I challenge our people to push back. “Some of the best ideas I’ve gotten have come from our people,” he acknowledges with a smile. Debnam was born in Raleigh and also lived in Atlanta and St. Augustine, Fla., while growing up. He studied engineering at the University of North Carolina at Charlotte and, at 6 feet 6 inches, thought of walking on to the basketball team. Unfortunately for him, it was the year that Cedric Maxwell started leading the nucleus of a squad that, a few seasons later, made it to the NCAA Final Four. But Debnam did meet wife Dreda at UNC Charlotte and they married in 1975, the same year he started work at the family roofing and sheet metal business.
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Business a Natural Fit Now 54 and soon to be a grandfather, Debnam reckons he’s a bit like some of his customers. “I think I’m a lot like our customers. I like to build things.” Debnam says. “And I’m not a ‘typical’ corporate kind of guy. I don’t like to sit behind a desk. I like to be out in the open with our employees. So the business is kind of a natural fit for my skill set.” By 1993, Debnam was general manager of a wholesale distribution company that still operates in Union County. But he was unhappy. “I made a decision many years ago that when I was not having fun, I would find something different to do,” Debnam says simply. Good friend David Mashburn, who had started Charlotte Hardwood Center in 1983, along with Robert Stolz, brought Debnam on board in 1993. They were operating on land in Third Ward that they had gotten from Stolz’ father-in-law. It was the last significant tract needed for what has become Bank of America Stadium, home of the Carolina Panthers. Through a swap, the company arrived at its current site on Golf Acres Drive. Debnam acknowledges he benefited from a close association with Stolz and Mashburn, as well as with Kris Lynch, long-time vice president.
“I’m probably the motivational guy,” says Debnam. “But sometimes I get tunnel vision. David listens better than I do and he picks up nuances. Kris is my financial arm and helps me through an area where I’m not strong. And Robert is just a great leader. He’s the consummate politician.” Together the group’s unique chemistry created a strong platform that helped fuel the growth of their business. In 1999, the company sold to The Würth Group of Künzelsau, Germany, a $10 billion operation which operates worldwide with 400 companies in 84 countries and about 58,000 employees. Four years later, Stolz joined the board of the company. Stolz’ appointment opened the presidency at The Hardwood Group and Debnam stepped in, with Stolz’ strong backing. The Hardwood Group officially changed its name to Würth Wood Group in 2006, but the parent company allows a great deal of latitude, Debnam says. However, Debnam oversees an extensive reporting structure that keeps German management close to the operation. He meets with that management typically three times a year, both in Germany and in Charlotte. Though Stolz is executive vice president for North America, his office remains at the Charlotte location, making him a constant advisor to Debnam. Stolz answers to chief executive Robert Friedmann and chairwoman Bettina Würth, daughter of founder Dr. Professor Reinhold Würth. At 75, Reinhold Würth is chair of the supervisory board of the Würth Group’s Family Trusts. Going Back to Basics Debnam likes the way the elder Würth built his behemoth from scratch. Whereas Debnam finds many European business people “very stodgy,” he admires the Würth track record because it is one of entrepreneurial innovation. “He was always cutting-edge,” Debnam says of Dr. Reinhold Würth. “Since the 1990s,
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they’ve grown very rapidly into a worldwide organization.” The Charlotte-based operation was building business by double-digit percentages annually until the economy turned sour in late 2008. Debnam has cut the work force by about one-third. “While positioning the company to remain strong has been an exciting management challenge, the hardest thing I had to do was let some people go,” Debnam says solemnly. “Those were people who were friends and family.” Debnam believes he’s found a way to return to strong growth. He’s going back to basics. He thinks the company got off track, spending far too much energy on trying to stay profitable while losing sight of the importance of selling. He’s refocused on selling and predicts that 2010 will be better.
“We roll up our sleeves and do whatever needs to be done. I’ve driven a truck a forklift and I’ve cleaned the toilets. I want our people to see what I do and I want to understand their challenges firsthand.” ~Roger Debnam
President
He’s seen some recent signs the economy is improving but admits it’s still uncertain. “One of our customers laid off his entire work force recently,” he says. “Other guys have got some business, but not what they used to have. And the jobs are smaller and getting them is much more competitive.” For his own competition, Debnam says he doesn’t directly vie with the big box stores. Their woodworking product lines aren’t nearly as extensive as his.
“Nobody really does quite what we do,” he says. “We are soup to nuts, so we have different competitors in various parts of our business.” “Our opportunity for our customers is to spend less time in the acquisition of the product and more time on developing their business,” he explains. So even in hard times, Würth Wood Group harbors expansion plans. “We’re looking at some internal expansion of product lines,” Debnam says. “We do a lot in hardwood lumber but we see an opportunity to grow. We’ve never really gone after the truckload business. So we see huge potential growth just in a product line we’ve already got.” For geographic expansion, Debnam points to a wide separation between the firm’s Atlanta presence and its operation in Miami. He’d like to fill that either through startup or by acquisition. Other areas the company is eyeing include Tennessee, Alabama and Louisiana. Outside of spending time with his family, Debnam works with a physical trainer his wife insists he see once a week and he pursues his passion as a private pilot. He owns a Cessna 182 with business partners Mashburn and Lynch. At work, the challenges of building the business and expansion promise to keep Debnam busy with his love for engaging his employees. “I coached athletics a lot when I was younger,” says the one-time basketball player whose sports-related injuries forced him to abandon the game. “This is like a big coaching job,” he says. “To me, it’s just the greatest experience in the world to see somebody who might not have had an opportunity get a chance and then succeed.” He smiles and adds: “The owners have allowed me to do what I wanted to do. I’ve enjoyed every part of this experience.” biz
Würth Wood Group Inc. A division of The Würth Group, Künselsau, Germany
4250 Golf Acres Drive Charlotte, N.C. 28202 Phone: 704-887-7951 Principals: Bettina Würth, Chair; Robert Friedmann, Chief Executive; Robert Stolz, Executive Vice President, North America; Roger H. Debnam, President Established: 1983 as Charlotte Hardwood Center; sold to The Würth Group in 1999; became Würth Wood Group in 2006 Employees: 269 Locations: Charlotte; Raleigh and Greensboro, N.C.; Greenville and Charleston, S.C.; Norfolk, Richmond and Roanoke,Va.; Baltimore, Md.;Atlanta, Ga.; Chattanooga,Tenn., Tampa, Ft. Lauderdale and Miami, Fla. Business: Offers custom cabinet shops, furniture, store fixtures, millwork and casework manufacturers the highest quality materials, brands and product range from lumber and plywood to surfacing products, tools, finishes and specialty hardware. www.wurthwoodgroup.com
Ellison Clary is a Charlotte-based freelance writer.
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(l to r) Joe Zammit V.P., Multimedia Specialist Lou Amico President L.A. Management Company, LLC
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by casey jacobus
[bizprofile]
Digital Communication At L.A. Management Marketing and Communications Make Sense
L
ou Amico grew up on Long Island and spent twenty-five years in the New York corporate world before moving to Lake Norman in 2004. He brought with him 25 years of experience in marketing and managing small businesses, founding L.A. Management Company, LLC to offer strategic marketing, video production, Web development, Internet marketing and event production for small businesses in the Charlotte area and across the country. “I know how to run a business and market it,” says Amico. “I can look at what a company needs strategically and help optimize its business growth.”
Accumulating Experience While attending college in Pennsylvania, Amico worked on a horse farm. The owner liked his work ethic and later hired him to manage one of his medical offices in New York. Amico founded his first company in 1982 to provide marketing and management services to the medical industry. Over the years, Amico used his acquired skills in advertising, graphic design and copy writing to create informational brochures, newsletters, magazine and newspaper ads for clients. As the world of information technology grew during the 1990s, Amico’s services also expanded. He launched several successful national and regional television campaigns for cosmetic and medical services. He eventually began producing long-form infomercials for broadcast TV. By the end of the decade, Amico was brought on as president to run a successful video production company in New York. Then the planes hit the World Trade Center towers and business in New York came to a standstill. %
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“Scale is no limitation. With broadband, we are able to communicate with our clients anywhere in the country, present or review projects, train staff and deliver media. Our network of contractors allows us to expand our capacity instantly if the project requires more than we can do in-house. The key is having the knowledge to manage it.” ~Lou Amico
President
“For at least six months after 9/11, a lot of the biggest companies we worked with were terrified to communicate,” says Amico. “Everything just stopped. Companies weren’t starting any new initiatives or planning any corporate events. Meanwhile, we were carrying a large facility with big equipment and personnel costs.” The hiatus provided by 9/11 gave Amico an opportunity to take a hard look at his own life and career. He knew that broadband Internet made it possible for him to work anywhere in the world. He also realized that he wanted to do more than video production work. As he approached his 50th birthday, he began to understand that he wanted to have a larger role in the strategic decisions and marketing planning of his future clients. It was time for a change. Amico met Joe Zammit doing video production work in New York. Zammit, a musician and audio engineer, was doing programming
Lou Amico preparing Jenn Snyder for a Hood Hargett Breakfast Club video; Joe Zammit setting up the camera.
technology, corporate staging and camera work. He complemented Amico’s skills well. “I’m the storyteller,” says Amico, “and Joe makes our productions look pretty. He is the real talent behind our video production work.” Fortuitously, both Amico and Zammit had ties to the Charlotte area. So when Zammit was also willing to move south, Amico left the production company and their 10,000-square-foot facility in New York with his $150,000 editing suites and $85,000 DigiBeta cameras to build a home/office on property he already owned in Westport on Lake Norman. Today, he and Zammit can do as much with $15,000 of hardware, camera equipment and software, and do it faster, than they could in New York and save their clients money at the same time. “Scale is no limitation,” asserts Amico. “With broadband, we are able to communicate with our clients anywhere in the country, present or
review projects, train staff and deliver media. Our network of contractors allows us to expand our capacity instantly if the project requires more than we can do in-house. The key is having the knowledge to manage it.” Building Alliances The Charlotte business community embraced L.A. Management. Amico’s style meshes perfectly with the open and welcoming business environment in the Charlotte area. He has always been willing to put the effort into building relationships in a community that demands hard work and genuine communications. “We all love Lou,” declares Patricia Golden, president of My Team of Experts, Inc. “He puts forth 200 percent effort and does a perfect job every time.” Amico began by joining the Charlotte Chamber of Commerce and the Hood Hargett
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Breakfast Club. He seized every opportunity to make himself as visible as possible. He interviewed 25 CEO’s of Information Technology companies in two weeks to produce the Blue Diamond Awards nominations videos for the Charlotte Chamber. He worked with the Make-A-Wish Foundation of Central and Western North Carolina, the Girl Scouts Hornets’ Nest Council and UNC Charlotte’s Continuing Education programs. It didn’t matter whether it was a local nonprofit agency or a medical client in California, Amico was willing to get involved with his clients and to provide them with valuable services. “I never did anything for free,” reports Amico, “but I was always open to trade or other opportunities that would get us exposure.”
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“your business development advisors”
Amico was also looking for opportunities that would go beyond the marketing aspects of a job. In this second opportunity to make his career, he wanted to dig deeper and make more of an impact on his clients’ businesses. “We decided early on that we wanted to be a value company rather than a product company. When we work with a client, our approach is that we are a partner. We analyze the client’s needs the way we would if we owned their company. We don’t sell products like videos or Web sites; we provide solutions based on the specific client needs and budget.” L.A. Management has built a relationship with Charlotte-based CoaLogix that exemplifies Amico’s vision. CoaLogix, a leader in catalyst regeneration and other environmentally friendly technologies for coal-fired power plants, needed a video for a trade show. In an online search for video production companies, CoaLogix found and contacted Amico. L.A. Management produced the video and then revamped CoaLogix’s Web site. “Our approach is to ask: Why do you want to produce a video? How will it be delivered? %
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trust+strategy+integrity+planning+insight+experience
it all adds up!
Daniel, Ratliff & Company
301 S. McDowell St., Ste. 502, Charlotte, NC 28204 704.371.5000 • www.danielratliff.com j a nu a r y 2 0 1 0
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How can we maximize its investment and distribution? These questions lead us to a more in-depth conversation about their goals and challenges.” In September, CoalLogix was chosen as one of the GoingGreen Top 100 Winners by AlwaysOn for major developments in the creation of new business opportunities in the green technology industries. In addition to Web site development, L.A. Management offers clients, including CoaLogix, SEO marketing, or Search Engine Optimization. This is the process of optimizing a Web site to rank higher in the major search engines like Google, Yahoo and Bing. From a marketing perspective, Web sites are more valuable if they appear on page one of the search engine’s listings, where customers can find them most easily. L.A. Management has developed programs to strategically raise a company’s Web site visibility to its target audience. A partial list of the clients with which L.A. Management works in the region illustrates the diversity of industries and projects the company handles. L.A. Management has produced videos and events for La Noticia, Charlotte’s Spanish language newspaper, and the Charlotte International Cabinet, the Charlotte region’s leading resource for promoting international business and international communities. It has produced a promotional trade show video for High Point-based AppleRock Displays, a company which itself produces trade show displays. It has produced a driver safety video for AAA Carolinas, a process efficiency video for Lumberton-based Global Packaging, and promotional and how-to videos for Charlottebased Bonsal American, a leading manufacturer of packaged building materials and pavement maintenance products for both commercial and residential construction. L.A. Management has done Web development, SEO marketing development and e-mail marketing for Hood Hargett & Associates, an independent insurance agency in Charlotte, as well as e-mail marketing for the local franchise of Massage Envy and Web site development and SEO for Automated Shredding, a Charlotte-based company providing mobile document shredding services. It has produced trade show videos for Matthews-based International Construction Equipment, the largest manufacturer of pile driving and drilling equipment in North America, and videos for the Web site of Sitetec Construction Company, a Charlotte-based commercial construction company specializing in multi-family interior and exterior renovation and fire restoration. Additionally, L.A. Management serves clients
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L.A. Management won four Telly Awards at the 2009 judging of the annual best in local, regional and national commercials and video and film productions, bringing its total to 10 Tellys earned in the past three years.
across the country, including NASA in Houston, producing an award-winning video for the Kennedy Launch Academy Simulation System (KLASS). A significant portion of L.A. Management’s clients are medical practices, several of which Amico has helped from start-up to successful practice. These include Charlotte-based Piedmont Plastic Surgery and Dermatology; Chester County (Pennsylvania) Otolaryngology and Allergy Associates; Milwaukee-based Clinic of Cosmetic Surgery; Austin, Texas-based McGrath Medical and McGrath Cosmetic; and Dr. Sara Wasserbauer, who provides medical hair restoration services in Walnut Creek, California. Establishing Credibility L.A. Management won four Telly Awards at the 2009 judging of the annual best in local, regional and national commercials and video and film productions, bringing its total to 10 Tellys earned in the past three years. This year’s awards were for its NASA video, as well as videos produced for Piedmont Plastic Surgery & Dermatology and The Charlotte Chamber. The fourth award was a Multimedia Award for their Demo Reel CD-Rom. People sometimes mistake the “LA” in L.A. Management as standing for Los Angeles, but of course it stands for Lou Amico. And, the company reflects Amico’s personal style of doing business. Amico claims to have never made a single “cold call.” Instead, he has built his young company on networking and referrals. Eighty percent of L.A. Management’s business is in ongoing support for existing clients. Amico particularly enjoys developing relationships with Charlotte’s corporate leaders. Bob Korkos, president of Automated
Shredding, started his new company in Charlotte a few years ago and credits L.A. Management for positioning his company Web site on page one for most of the major keywords. “Lou Amico is so well connected here in Charlotte; he really helped introduce us to the right people when we first came to town. Our business has grown through relationships and the Internet and L.A. Management has been an integral part of our success,” says Korkos Amico enjoys the Lake Norman lifestyle. Since Zammit also lives on the lake in Mooresville, Amico often commutes to Zammit’s home on his boat to edit video projects. He also entertains clients on the lake, taking them to lunch on the water. Amico expects L.A. Management to thrive over the next few years. In fact, he expects to be able to keep his home and office under one roof for only another year or two. He anticipates more employees, more clients and expanded services. “You have to grow; you can’t not grow,” he says. “The Internet is an ever expanding opportunity and we are helping our clients transition from traditional media. We work very hard to support all aspects of our clients’ online initiatives.” And, being Amico, he looks forward to the next step. He’s eager to nurture future employees to become project managers, freeing him to expand the company’s services. biz Casey Jacobus is a Charlotte-based freelance writer.
LA Management Marketing & Communications, LLC dba
L.A. Management Company, LLC 8131 Bay Pointe Drive Denver, N.C. 28037 Phone: 800-651-7818 Principals: Lou Amico, President; Joe Zammit,Vice President, Multimedia Specialist In Business: 5 years Employees: 6 Awards: 10 Telly Awards, one of the most prestigious awards in advertising, film and video production; selected as one of Top 100 Small Businesses in North Carolina in 2009; Lou Amico named an Impact Business Leader and 2000 Mover and Shaker and also honored as a 2007 Charlotte Chamber Entrepreneur of the Year Award finalist. Business: Specializes in strategic marketing, video production, Web development, Internet marketing, social media promotion and event production. www.lamanagementco.com
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!February 24, 2010 4pm-6pm DISSOLVE FEAR & CREATE CONFIDENCE Deborah Millhouse CEO, Inc.
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“During the last decade or two, we have focused on building infrastructure, adding new academic programs and growing our research capacity. The ‘Stake Your Claim’ branding campaign makes clear the immense value that UNC Charlotte brings to the Charlotte region and the vision we have for the future.” ~Philip Dubois
Photo:Wayne Morris
Chancellor
Philip L. Dubois Chancellor University of North Carolina at Charlotte
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UNC Charlotte serves as the only doctoral research university in the dynamic Charlotte area of more than 2 million people. Seven academic colleges and the Graduate School offer 92 bachelor’s, 59 master’s, and 18 doctoral programs. The 950-acre campus includes seven new academic buildings completed within the last six years, a state-of-the-art library, and a new student union that opened in 2009.
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by ellison clary
Clear
[bizprofile]
Vision
unc charlotte stakes its claim
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earing five years as chancellor, Phil Dubois keeps tabs on plenty of projects at the University of North Carolina at Charlotte. Besides academics, these range from starting a football program to guarding campus safety. Yet his vision remains in focus. “I think it’s the same vision Jim Woodward had,” says Dubois, naming his predecessor who is widely praised for his 16-year tenure. “That is to build a major urban research university.” UNC Charlotte’s new mission statement declares it is exactly that—the state’s urban research university—and the board of governors of the 17-campus University of North Carolina system recently approved that document. Dubois quickly lists a host of academic enhancements he’d like to achieve as part of a UNC Tomorrow blueprint of System President Erskine Bowles. He speaks easily and in detail about the campus he returned to in summer 2005 after eight years as president of the University of Wyoming. From 1991 to 1997, he had served UNC Charlotte as a professor of Political Science, provost and vice chancellor for academic affairs. He’s enthusiastic about what the school is and what he believes it will become. Taking Initiative After official installment in early 2006, Dubois started 55 initiatives. They were aimed at strengthening the institution academically, administratively and in its relations with the greater Charlotte community.
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He elaborates of progress in four important areas: increasing visibility, establishing a center city Charlotte showplace, advocating for a campus light rail stop and creating an energy production center. For visibility, he says, “the common refrain was that we were the best-kept secret in Charlotte, if not North Carolina.” Mitigating that is the newest division—university relations and community affairs—and its efforts in stronger branding as well as a beefed-up Web site. “The decision to construct a center city building was critical,” Dubois says. Woodward had acquired the First Ward land near the light rail tracks, but Dubois made a distinctive structure his top legislative priority and he won support from Bowles. Construction is underway on the 12-story, cantilevered design that will house the university’s MBA program in 2011. Dubois also advocated for a northern extension of Charlotte’s light rail, with a stop near the newly completed student union. “Long-term, long after I am chancellor, it will turn out to be a very important decision,” he predicts. Then there is the push to create EPIC, the Energy Production and Infrastructure Center. Engineering Dean Bob Johnson envisions it as an increasingly vital work force development tool as Charlotte develops a budding energy sector. With legislative funding and the university system’s blessing, construction has started for a 200,000-square-foot, $76 million building. “EPIC is designed to train engineers in all kinds of power generation, including nuclear, traditional, biofuels and alternative,” Dubois says. %
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Then he switches to health care, which he says is already larger in this region than the vaunted financial services industry. “Inevitable” is how he characterizes UNC Charlotte’s prospects to start a medical school, although he adds “daunting” to describe nearterm funding initiatives. For now, the school will continue a collaborative research relationship with Carolinas HealthCare System and will help the Chapel Hill campus expand its third- and fourth-year classes in Charlotte. The eventual goal is to involve Charlotte with first- and second-year students, as well. “It won’t be long,” Dubois adds, “before we will make an argument to have a school of public health care. It would be out of our College of Health and Human Services. The degree would be in Public Health.” For the next five years, Dubois has more goals. For starters, he wants to strengthen the newly created College of Arts + Architecture and enhance the university’s offerings in the fine and performing arts. But that isn’t nearly all. To the school’s 92 bachelor’s, 59 master’s and 18 doctoral programs, Dubois wants to add 15 bachelor’s, 15 master’s and 12 doctoral paths. Not all will win approval, and UNCC couldn’t implement them all even if they did, he admits.
Chancellor Dubois on the Board of Trustees “I feel very good about the membership in our board of trustees,” says UNC Charlotte Chancellor Phil Dubois. He singles out each member for praise, but he turns initially to Ruth Shaw, the first woman board chair. The recent retiree from Duke Energy continues to serve that firm as an executive advisor. “Ruth has been as effective as anyone could ever be in the role of trustees chair,” Dubois says. “She is a consensus builder and a leader and has been a very good advisor for me. “I am in my 13th year of being a university president and there have been times when I thought I knew it all,” Dubois smiles. “But the more I am around Ruth, I know I don’t.” Other members of the board of trustees are: Norm Cohen, vice chair, president and chief executive of Unitec Inc.; Gene Johnson, secretary, recently retired chairman and chief executive of Fairpoint Communications; Jim Babb, executive vice president, television, Bahakel Communications; Joseph Lemons, president of the student body, University of North Carolina at Charlotte; Dale Halton, retired president and chief executive of Pepsi Cola Bottling Company of Charlotte; Bob Hull, executive vice president and chief financial officer of Lowe’s Companies; Jeff Kane, retired senior vice president in charge, Charlotte branch, Federal Reserve Bank; Dave Hauser, former chief financial officer of Duke Energy and current chairman and chief executive of Fairpoint Communications; Karen Popp, partner with Sidley Austin LLP; Joe Price, chief financial officer of Bank of America; Laura Schulte, president, community bank, eastern region, Wells Fargo; and Bert Scott, executive vice president, TIAA-CREF.
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Still, he wants to establish momentum. Robyn Massey, UNCC Alumni Association president, gives Dubois high marks. “He did a tremendous job of taking the vision that Chancellor Woodward had and continuing to develop it,” says Massey, a 1981 mathematics graduate. “He’s the right man at the right time,” continues the project manager for IBM in Charlotte. “We need somebody who will allow us to get the notoriety that we’ve been so long deserving of.” A Diverse Campus Surprisingly for many, UNC Charlotte’s campus enrollment is nearing 25,000, 80 percent of whom are full-time students. The school has about 1,000 faculty and 2,500 staff. Students come from almost all 50 states and from about 100 countries. A bit more than 52 percent are female. Fifteen percent are AfricanAmerican and another 10 percent represent other minority groups. “We are actually the most diverse campus in the system,” Dubois says. Once identified as a commuter school, about 25 percent of students now live on campus. Two-thirds of them work and about the same number receive financial aid. Around 40 percent are first-generation collegians but, at 55 percent, the graduation rate is higher than many would surmise for that mix. More than half the students live on campus or within a mile of campus. The school is putting more classes online, but Dubois adds a caveat. “Over the past 10 years, we have become a pretty traditional-oriented undergraduate population and that still requires certain face-to-face time with faculty.” Dubois admits that concern for student safety is an enormous, ongoing consideration. “We are not a dangerous campus, but it’s a dangerous world and we have very porous borders,” he says. “We rehearse disaster preparedness regularly.” To serve an increase of 10,000 students anticipated by 2020, Dubois says, “We’re going to need some additional buildings,” naming a new $120 million science structure as the next priority. The $65 million student union was just completed last fall. “Students have been jamming it,” Dubois smiles. “I think it already is affecting traffic patterns on campus because the students are spending a lot more time there—and spending more time on the weekends at UNC Charlotte.” Dubois admits to realizing his most fun through working on capital development. “That’s a tangible, visible, touchable mark of progress,” he says. “When we saw the students go into the student union the first time, it was a very gratifying moment.”
Hitting the Big-Time Many students dream of a big-time football program. A veteran of a Division 1A pigskin operation in Wyoming, Dubois is convinced the sport is necessary here.
“There is a considerable sentiment among a vast majority of board of trustees members to move forward and try to find a way to pay for football through a combination of student fees and private donations, including seat license sales,” he says. For construction of a stadium, he cites recessionary interest rates that are low enough that “this is a moment that we won’t see again.” Football was probably the last issue Dubois wanted to deal with, chuckles Dennis Bunker, who was alumni president during the chancellor’s first year. With a 1981 economics degree, he now owns
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David Dunn, who presides over community relations and academic affairs and is campus liaison to the General Assembly; Art Jackson in student affairs; chief information officer Jay Dominic; Steve Moser, vice chancellor for research and federal relations; and David Broome, general counsel.
“We are a well-funded institution by comparison with many places in higher education. Faculty salaries have become more competitive, during the Bowles years in particular, and we are getting our first choices for faculty when we hire.” ~Philip Dubois
Chancellor
Bunker Land Group in Charlotte. He praised what he calls Dubois’ “range,” his ease in dozens of different settings. “For the football issue,” Bunker says, “he analyzed that opportunity and distilled it to its simplest form, which is, ‘Can we pursue this or not?’” When the football team kicks off, its players will be called Charlotte 49ers, a shortened moniker the school’s athletics teams use. While he acknowledges the name works for sports, Dubois professes his firm belief that the institution must remain the University of North Carolina at Charlotte. “There is considerable brand equity in that name,” he says simply. “We have 80,000 alumni with degrees from the University of North Carolina at Charlotte and they have to be considered.” Dubois praises his cabinet of direct reports. It includes Beth Hardin, vice chancellor for business affairs; Joan Lorden, provost and chief academic officer; Judy Rose, athletic director; Niles Sorenson, director of development and alumni relations;
He lauds the initiatives of special entities such as the Charlotte Research Institute, the UNC Charlotte Urban Institute and the Institute for Social Capital. Additionally, he feels the university is interfacing strongly with David Murdock’s North Carolina Research Institute in Kannapolis. He likes the interaction the school enjoys with area leadership, taking particular pride in recognition from the Charlotte Regional Partnership. That group honored the university for promoting economic development. Some feel the school doesn’t receive proper financial rewards. They fault a university system funding formula that has not always been kind. Dubois admits the funding mechanisms don’t recognize all the needs of a rapidly changing school such as UNC Charlotte, but cites strong support and advice from President Bowles on capital projects. “I told our people I don’t expect these formulas to change and we are not going to whine about it,” Dubois says forcefully. “We are a well-funded institution by comparison with many places in higher education,” he adds. “Faculty salaries have become more competitive, during the Bowles years in particular, and we are getting our first choices for faculty when we hire.” Indeed, Dubois voices certainty that other institutions regularly try to raid his campus. “One of the great things about UNC Charlotte is that we have been able to hold onto people,” he smiles. “They enjoy the working environment here and they like the excitement that we are building something.” Promoting campus growth coupled with that of the region is what faculty president Alan Freitag calls a strength of Dubois. But the associate
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professor in the Department of Communication Studies, who has held faculty leadership since April, says Dubois should be more visible. “As a public relations advisor,” Freitag explains, “I would say he needs to get engaged in the faculty community and the student community and let everyone see how committed he is to this university’s continued greatness.” Dubois hosts many social events at the chancellor’s on-campus residence. Often presiding over these is UNC Charlotte’s first lady Lisa Dubois. Her parties have won a reputation for creative spark and enticing menus. Dubois grins about Lisa’s social prowess. “She comes by it through having had a very creative mother and grandmother,” he says. “She’s awfully good at being a hostess for university events. It’s a lot of work that sometimes doesn’t get recognized.” At 59, Dubois hopes he and Lisa will remain at the university until retirement. But he points out that Bowles is widely expected to step down in fall 2011. “Obviously, I’ve got to be able to work with his successor,” Dubois says. “But I certainly came back to Charlotte with every intention of staying here.” biz Ellison Clary is a Charlotte-based freelance writer. UNCC Photos: Wade Bruton
The University of North Carolina at Charlotte 9201 University City Boulevard Charlotte, N.C. 28223 Phone: 704-687-2201 Principals: Erskine Bowles, President, N.C. University System; Philip L. Dubois, Chancellor Founded: 1946 Enrollment: 24,701, including 5,300 graduate students Enrollment by 2020: 35,000 Faculty/Staff: 1,000/2,500 Campus: 1,000 acres with 75 structures Financial Support: Recent significant private support includes $9.3 million over 10 years from Leon and Sandra Levine for a merit scholarship program to develop community leaders; recent significant university system support: funding for 12-story structure in Charlotte’s center city About: Fourth largest of the 17 institutions within the University of North Carolina system. Now a research-intensive university, it comprises seven professional colleges and offers 18 doctoral programs, 59 master’s disciplines and 92 bachelor’s pursuits. www.uncc.edu
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Carson Tate President Working Simply
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by susanne deitzel
[bizprofile]
Simply Working Work/Life Organization Strategy Simply Works ccording to The Wall Street Journal, white collar workers waste an average of 40 percent of their workday, not because they aren’t smart, but because they were never taught organizational skills to cope with the increasing workloads and demands. Another source estimates a full 85 percent of the information businesses need to operate exists in content such as e-mail, graphics or video (Document Magazine, October 2003), with employees spending 25 to 35 percent of their time looking for the information they need to do their jobs. Sources peg 30 percent of all employees’ time as spent trying to find lost documents (Jane M. Von Bergen, The Boston Globe 3/21/2006), estimate that executives waste six weeks per year searching for lost documents (Fast Company Magazine 8/2004), indicate that a full 59 percent miss important information almost every day because it exists within the company but they cannot find it (Accenture, The Wall Street Journal 5/14/2007), and this, despite the fact that workers spend 41 percent of their time in e-mail management alone (Radicati Group, Palo Alto, 2007). As a result, sources estimate Americans waste more than two hours a day at work, costing companies $759 billion a year (Salary.com), and spend a full 80 percent of the average workday on things that have “little” or “no” value (Balancetime. com). That same source calculates that, in the last 20 years,
working time has increased by 15 percent and leisure time has decreased by 33 percent. You’re not surprised? And none of these is a current, realtime statistic! Got Chaos? The ever-increasing pace of change brought about largely by the ease of enhanced communications has brought with it more for us to do, more for us to know, and more for us to keep track of. Combined with heightened competition from an increasingly globalized economy, most businesses and individuals would be hard-pressed to deny that they need all the organizational help they can get, sometimes just to survive. Forward-looking companies, as well as individuals who work but also have responsibilities outside of work, are innovating, streamlining, and taking a new look at their game plan. Many experts say that taking charge of this sea change is very smart and very necessary—but also to expect a lot of chaos in the meantime. This is where Carson Tate comes in. President and founder of Working Simply, LLC, Tate is building a powerful reputation as a change agent on both the business and consumer levels. Tate revolutionizes organizational efficiency by assessing, analyzing and reengineering process flow, organizing and optimizing physical space, and providing time and task management solutions. %
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WorkingSimply “These tactical methods to optimize processes. Now she Seminar to creating and implementis in demand by organizations Group Work Session ing change are ‘unsexy’,” Tate seeking systemic efficiencies admits. They usually involve and higher productivity. laser focus upon things like Tate debunks the notion paper flow, e-mail and calendar that disorganization is a charmanagement, and task lists. acter flaw. She says that in “But while these features of our many instances her clients daily existence aren’t glamorare high achievers who bury ous, lack of attention to them themselves in commitments can hit the bottom line harder until they are forced to review than a poor strategy.” how they are organizing the Carson Tate presents to Coca-Cola Bottling Co. Consolidated employees. “Technology has exponenstructures around them. It is tially increased the tide of digital easy to apply the same logic communication, so there is more information and She did research, held an apprenticeto what many businesses are experiencing while less time,” she explains, citing one report by the ship, received her CPO (Certified Professional trying to do more with less. It is also easier to see Gartner Group estimating that U.S. businesses Organizer) designation, and was almost immedideficiencies in leaner times. spend $360 billion a year turning information on ately invited into people’s homes and then their Tate explains: “A classic example is front line the documents they receive every day into someoffices to make their daily lives more efficient, sales and sales fulfillment. There is often a disconthing they can use to run their businesses. more productive and more enjoyable. The businect between these two groups that is directly And because many companies have reduced ness grew fast, and in a few years spawned her related to how they pass along information. What staff, employees are increasingly overwhelmed by business unit, Working Simply. might look like routine paperwork can be the additional and unfamiliar duties that don’t necesClients say that Tate’s professionalism, preshidden source of delays, customer complaints, sarily jibe with their other job functions. Schedules ence and sense of ease sets the tone for objectivity and lost sales. By optimizing that process and are overloaded. Stress makes it harder to concenand fact-finding. Foundation for the Carolinas’ aligning internal staff, a business can quickly and trate and communicate. Mistakes happen. Holly Welch Stubbing engaged Working Simply profoundly influence its bottom line.” In addition to this, companies are creating after she returned from maternity leave. Tate says that this economic environment has new strategies that require a fresh look at the most “I have a very tight meeting schedule so I need placed an incredible amount of stress on business direct, highest-yield path from point A to point B. to be as efficient as possible. Carson provided systems. “Not only are companies deciding that Keeping things crisp and efficient is essential. expert ways to delegate tasks, coordinate my daily processes need to be reviewed and restructured, but they are requiring that new systems be flexible and adaptable, and contract and expand to constant change.” Another common need is reviewing how “If your physical space is cluttered, or unused, then there physical space is used. Businesses are looking to is something that isn’t working as well as it could. And for a streamline, optimize and eliminate unnecessary business, that means lost opportunity in terms of revenue.” overhead, and in some cases reconfigure existing space into revenue-generating assets. ~Carson Tate “If your physical space is cluttered, or unused, Working Simply then there is something that isn’t working as well as it could. And for a business, that means lost opportunity in terms of revenue,” says Tate. Design & Detail calendar, capture takeaways from meetings, and She also makes a distinction between activity Tate, like a lot of entrepreneurs, bumped into manage the enormous amounts of paper that I coland productivity: “A common problem is outthe recognition of her unique skill set. As a sales rep lect between meetings,” attests Stubbing. dated reporting structures. We are finding that for a pharmaceutical company and working fairly After working with individuals in their office companies have new strategic goals, but are still constantly out of her car, associates would ask her environments for a few years, it became very clear using old sales reports. There is an incredible how she managed to keep her schedule, her office, to Tate that her talents weren’t limited to the domain amount of human resources being channeled into her car, her life, so organized. of organizing. She started to hear feedback from cligenerating and assembling data that isn’t relevant “I didn’t realize these things didn’t come intuients like Spark Publications President Fabi Preslar: and no one is reading.” tively to everybody. But once I started hearing it over “Carson helped me find a system that has made me Globalization also presents productivity chaland over again, something clicked and I thought much more focused and created even more efficient lenges. Different cultural mindsets affect sense of ‘Maybe I have something here,’” she remembers. and profitable ways to run my company.” And she urgency, team and individual dynamics, and other She danced with the idea of starting her own expanded her service offerings accordingly. factors that influence the decision-making process. business for a full year before taking the leap. Then “The success of an intervention is contingent in 2003, she said goodbye to her job (and her Structures & Success on a solution that is appropriate for the users, the company car, cell phone and computer) and began Gradually, Working Simply evolved from culture, and the stakeholders,” comments Tate. building Simplicity, a business providing organizaone-on-one work with senior executives and “By taking cultural variations into account, we can tional solutions to consumers. entrepreneurs to advising teams and departments integrate these factors into the solutions we create.” 28
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Why work like this... Process & Productivity Not surprisingly, Working Simply has a highlystructured, yet customized process for service delivery. An initial phone call determines if the client and Working Simply are a good fit. Generally, this means that the individual, leader or team is open to suggestions and amenable to change. “We want to provide the highest value to everyone, and sometimes this includes explaining that investing in something they aren’t completely committed to isn’t a good use of their resources.” Tate adds, “We have found that a client must realize that the cost of the status quo has to be higher than the cost of investing in the solution.” The most frequent costs include decreased morale and productivity, sagging sales, and lost opportunities, but can also lead to gross negligence resulting in costly errors, regulatory or legal violations. After the initial phone conversation, a faceto-face meeting with the leader, team, owner, or HR department is scheduled to determine the presenting problems and ascertain details concerning the scope of the project. This meeting also creates a foundation for Working Simply and the client to align on goals and success measures. Tate explains that measurement is an integral part of the process. “We have developed very specific questions to determine what success looks like for each client. We want to know what outcome is important to the company—is it reduced absenteeism, higher production figures, increased sales metrics, decreased cost figures, better customer satisfaction scores? Because change itself can be a process, it is important to determine these measures and establish markers in time to see improvement,” explains Tate.
WorkingSimply “Since we tailor solutions to fit client needs, we build sustainability into the solution. However, we like the client to test drive and tweak the process. We are completely happy when we have worked our way out of a job.” Individual coaching engagements usually range from 3 to 6 months. Organizational projects generally range anywhere from 30 days to 6 to 9 months. They include a contractual
!Before
When you could be working like this... !After Working Simply’s proprietary assessment devices. From this data, a recommendation is offered. The organization is then free to take the recommendation to execute on its own, or can choose to enter into Working Simply’s implementation phase. Sweet Spot Working Simply’s sweet spot is comprehending a company’s big picture and translating it into tasks as detailed as managing an inbox or paper flow, designing a form, or a delegation process. Tate is careful to add, “When a project enters into an area of specialization, we refer that item to one of our carefully selected subject-matter experts.” “For example,” she says, “an accounting client and I might identify gaps between needs and fulfillment from a particular software program; however, finding the particular fix for that issue would be referred to someone fluent in those products.” Similarly, she may help a client identify the skill sets and abilities needed for an employee
“People in an expansion mindset are looking at ways to not only innovate their products, but innovate their systems, which is very exciting.” ~Carson Tate Working Simply
The process then moves into assessment, which can include interviews, shadowing, and
position, but does not perform the recruiting. She adds that the process of integrating a specialist into a project is seamless for the client and the relationships are trusted, enduring and share values and standards in service delivery. Any engagement is followed by an evaluation of the project, and a follow up 30 to 60 days later to determine its efficiency and sustainability.
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provision for confidentiality which Tate says is a cornerstone to developing the trust that yields real results. While the majority of clients are seeking streamlining and optimization as the result of economic contraction, Tate says she is beginning to see people thinking about how to expand again. “People in an expansion mindset are looking at ways to not only innovate their products, but innovate their systems, which is very exciting.” While she stays very busy, Tate practices what she preaches. Her schedule includes two blossoming businesses, a thriving peer network, and community service as an elder at Myers Park Presbyterian Church and board member of Girls on The Run Charlotte. The Boston Marathoner also regularly works running into her calendar, is pursuing her master’s degree in Organizational Development at Queens University, is a seminar speaker, and makes sure she has plenty of time to spend with her husband and two dogs. Her secret to success? “Prioritize, schedule, see it through,” Tate summarized, “If it’s not on your calendar, it’s not in your life.” biz Susanne Deitzel is a Charlotte-based freelance writer.
Working Simply, LLC 1227 Coddington Place Charlotte, N.C. 28211 WorkingSimply Phone: 704-362-1526 Principal: Carson Tate, Founder and President Founded: 2003 Employees: 4 Business: Business solutions, process engineering, productivity consulting, for businesses; residential and personal organizing solutionsfor consumers. www.workingsimply.com www.simplicity-organizers.com R
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(l to r) David W. McMahan, MBA Alan Boyer, CFA, CPA Michael E. Fayed, MBA, CPA, CFP Managing Directors Capital Guardian
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Wealth Management Investment Solutions
w w w. g re a t e rc h a r l o t t e b i z . c o m
by zenda douglas
[bizprofile]
INVESTMENT
FREEDOM Capital Guardian Creates a Business Model
T
hree executive partners, three friends, sit comfortably around the conference table in an office they own together on Park Street in Belmont. Their easygoing natures and the confidence they exude as they talk about their business, their plans, is inspirational. Advisors from around the country, mostly informed by word-of-mouth testimonials, are reaching out to Capital Guardian, LLC, and its new model for doing business. The regional investment brokerage and wealth management firm, headquartered in Belmont, serves the eastern United States with 16 offices between North Carolina and Florida and advisors offshore in Ecuador and Brazil. Managing partners David McMahan, Michael Fayed and Alan Boyer have known each other for years going back to college, early employment and basketball days. Capital Guardian has its roots in I.P.S. Financial Services Corporation, a firm founded by David McMahan’s father, Michael “Mick” McMahan, in 1984. IPS started out as Investment Planning Services of Gastonia, Inc., operating as a branch of the Raymond James & Associates brokerage house. “David and I went to work for his dad on the same day in 1999,” remembers Fayed. In 2003 they recruited friend Alan Boyer. Three years later, in 2006, the three started under a new name, severed ties with Raymond James and replaced them with the Pershing, LLC investment clearing firm, and Capital Guardian LLC was up and running. An Opportunity is Made Capital Guardian’s success is proof that opportunity is where you make it. While longstanding financial institutions around the country, indeed world, were faltering as a result of the worst economic downturn since the Great Depression, Capital Guardian was able to capitalize on the dynamics inside the industry. As financial firms unraveled or required government assistance to survive, advisor layoffs and defections were rampant. Instability and uncertainly became the workplace standard and many advisors looked for new companies and new platforms for themselves and their investors. “This growth incentive fell into our lap around December 2008,” Fayed offers. “We cracked the door open for new advisors with a platform and they kicked the door in. Now we have a really strong platform for people to do business in.” %
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Rejecting the confinements of traditional wirehouse investment houses—large firms usually with proprietary investment products and limited investment platforms—Capital Guardian is an independent firm whose mantra is “open architecture.” It is committed to allowing its investment advisors the freedom to do business upon an unlimited platform with the benefit for the investor as its only driving force. “Most investment advisors invest in what management tells them to,” says McMahan. “Most large firms offer their own financial products and investment tools. Advisors are trained to use them by a commission structure that favors those
investments.” Capital Guardian has no proprietary products. “We don’t have a horse in the race by way of product and that makes our investment platform more open, better,” continues Boyer. “We wanted to build the firm we wanted to work for,” explains Fayed, who continues to serve his own investment clients. McMahan adds, “We’re affected by the same things as our client advisors. This helps when transitioning an advisor and a book of business into the firm. We know the challenges; we understand.” The rapid growth and success that the principals have experienced could knock lesser players off their game but they are forging onward—not
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“We cracked the door open for new advisors with a platform and they kicked the door in. Now we have a really strong platform for people to do business in.” ~Michael Fayed Managing Director afraid to say yes nor timid about saying no. Out of more than 220 advisors that have been interviewed, only 70 have gotten past the leadership of Capital Guardian. Capital Guardian wants to draw seasoned, established advisors with their investors in tow. The challenge of such remarkable growth is running the business day-to-day, agree the three principals. “We were a small, one-office operation, now we’re a legitimate east coast, and international broker/dealer,” reflects Boyer. “It’s a lot different operating today than two years ago,” he says. The firm’s strategic partnership with Pershing has provided scalability to Capital Guardian’s growth. Pershing, an affiliate of the Bank of New York Mellon Corp., is an investment clearing firm which provides support to broker/dealers by way of technology, human resources, business solutions and practice management. “We have a close relationship with those folks,” reveals Boyer, referring to the Pershing employees in Jersey City, New Jersey, and in Lake Mary, Florida. “Obviously, we could not run all of these offices with just our home office staff.”
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He explains, too, the benefit for Pershing of doing business with Capital Guardian: “Most firms are either stagnating or shrinking with major capital issues. We’re going the other way. Pershing needs firms like ours to support growth.” Pershing clears over 900 investment firms. Its trademark, “Your Business Without Limits,” fits well with Capital Guardian’s mission to liberate and empower investors and advisors. “In a coordinated effort with Jersey City, we’ve just transitioned a West Palm Beach, Florida, firm that opened this past November,” says Boyer, who expresses a desire to set up additional offices with the same model.
ESCAPE THE ORDINARY
Not the Traditional Model “Our focus is on all types and kinds of families and people across the age spectrum and the issues and challenges they face over time,” says Director Paul Vattiato. The firm’s model represents a departure from traditional wealth management and financial planning, reflecting a more holistic approach to investing as preparation and %
Capital Guardian is an independent firm whose mantra is “open architecture.” It is committed to allowing its investment advisors the freedom to do business upon an unlimited platform with the benefit for the investor as its only driving force.
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response to life situations. Those could include tax and legal issues, care giving, special needs family members, government benefits and many other life scenarios. Vattiato reports that he and his two partners felt a good match with Capital Guardian who was looking for a new model—a family model— in which the planning side and the quality of relationships were different than the norm in the industry. These advisors were previously with a large wirehouse firm whose culture became divergent with national financial issues. “Advisors don’t usually move around,” says Vattiato. “It can be scary and disruptive but we wanted the ability to do the work we wanted to do. We got a strong sense of Capital Guardian’s expertise; they were well aware of the difficulties from both the advisor perspective and the client perspective. They inundated us with resources so that nothing fell through in the process and it
“We don’t have a horse in the race by way of product and that makes our investment platform more open, better.” ~Alan Boyer Managing Director went very smoothly.” Management does not help advisors target clients. According to McMahan, each branch office has its own niche. “In South Florida, they do a lot with eldercare; working to protect sustainable cash during final years. Other advisors work with young professionals. There are many different groups of investors.” McMahan says Capital Guardian, with $1.2
billion in asset holdings, has recently developed a strategic partnership with Alliance Bank & Trust of Gastonia, N.C. The agreement calls for three major areas of collaboration: Capital Guardian will refer its deposit relationships to Alliance Bank & Trust; Capital Guardian will serve as the wealth management arm of the bank; and together they will develop commercial insurance business. Boyer explains the mutual benefit of the partnership: “Alliance will become our preferred provider of cash management solutions. This will grow the bank’s deposit base and, in turn, increase its ability to develop and provide additional banking services to our clients.” This is important to Capital Guardian whose advisors, coming from other financial services firms, are accustomed to having a suite of cash management products to rely on. “We feel very good about the Alliance
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producer or the $1,000,000 producer? Advisors are looking for solid footing, mostly with independent firms. When this movement settles down, the partners expect to have a big enough base to continue to grow.” “We have enough people out there to get the word out. We don’t want to be too large,” says Boyer, meaning it. McMahan, Boyer and Fayed also have plans to establish a foundation to support charitable giving. Capital Guardian investment advisors will have an opportunity to contribute to the foundation and to give input as to what causes it will benefit. The firm’s continued growth will be carefully scaled. After the expected leveling off of advisor defections and the opening of planned offices along the east coast, the principals of Capital Guardian will be ready to develop a new master plan for the company. Together with new offices and more locations in the Southeast, four commitments are bound to be included: a presence in Gaston and Mecklenburg Counties, an open architecture for its advisors, a place where advisors want to work, and first priority for clients. In the end, Fayed calmly assures, “Our professional success is measured only by client success.” biz Zenda Douglas is a Charlotte-based freelance writer.
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[bizoutlook]
Regional Economic Analyses and Forecast
North Carolina Economy Begins Modest Recovery Gains in second half of the year begin to chip away at declines over the past six quarters
T
he North Carolina economy is expected to decline by 3.6 percent during 2009, UNC Charlotte economist John E. Connaughton reports in his economic forecast for the state. This follows the decline of 0.6 percent experienced during 2008. Overall, the North Carolina economy is expected to decline during the first two John Connaughton, quarters of 2009, but to grow in the second half of the year. In the first quarter, Gross Ph.D. State Product (GSP) decreased by an annualized real growth rate of 7.3 percent. During the second quarter, GSP again declined, this time by an annualized real rate of 7.6 percent. In the third quarter of 2009, however, GSP is expected to grow for the first time in six quarters at an annualized real rate of 3.0 percent. For the fourth quarter, North Carolina GSP is expected to continue the recovery and expand by an annualized real rate of 3.8 percent. “There continue to be very mixed signals concerning the strength of the recovery,” Connaughton cautions. “The most troubling problem remains the financial sector. Excess reserves, which 16 months ago were less than $2 billion, now stand at nearly $1 trillion. As a result the banking sector, which is critical to recovery, remains troubled. Those enormous reserves represent money that is not being lent out to facilitate the recovery.” Annual Growth Rates In Real GSP 6 4 2
6.5
0
1.3
-0.6
-3.6
2.8
2007
2008
2009f
2010f
-2 -4
2006
Year-End Seasonally Adjusted North Carolina Unemployment Rates 14 12 10 8 6 4 2
4.7
5.0
2006
2007
8.1 2008
11.0
2009 f
10.5
2010f
2009 QUARTERLY Sector Analysis andRATES Employment GROWTH IN GSP Outlook: Nine of REAL the state’ s 11 economic sectors4 are expected to experience declines during 3.8 3.0 2 2009. 0 Only two of the state’s economic sectors are -2 expected to experience growth during 2009. These -7.3 -7.6 -4 sectors are: -6 • Government, with a projected real growth I 2009 rate of 7.22009 percent; andII 2009 III f 2009 IVf • Transportation, Warehousing, Utilities and QUARTERLY GROWTH RATES IN InformationFORECASTED (TWUI), with aREAL projected GSPreal growth 4 0.2 percent. rate of For 2009, North Carolina establishments are 3 expected to3.6lose 124,100 net jobs, 3.8 a decrease of 2 3.8 3.1 3.1 percent over the 2008 level. 1 The North Carolina seasonally adjusted unem0 ployment2010 rateI began atIII9.72010 percent, more 2010 IV 2010 II2009 than two percentage points higher than the United
States rate. By October 2009, the North Carolina rate had risen to 11.0 percent, while the United States rate was at 10.2 percent. Both the national and state unemployment rates are expected to continue to rise throughout the year, and by December 2009 the North Carolina unemployment rate is expected to remain at 11.0 percent. 2010 Economic Forecast: For 2010, Connaughton forecasts that North Carolina’s real GSP will increase by 2.8 percent over the 2009 level. First quarter GSP is expected to increase by an annualized real rate of 3.6 percent. During the second quarter, GSP should again increase by an annualized real rate of 3.8 percent. In the third quarter, GSP is expected to slip slightly, but still record an annualized real growth rate of 3.1 percent. In the fourth quarter of 2010, GSP is also expected to grow at an annualized real rate of 3.8 percent. 2010 Sector Outlook and Employment Outlook: Six of the state’s 11 economic sectors are forecast to experience output increases during 2010. The sectors with the strongest expected growth are: • Construction, with a projected real increase of 5.2 percent; • Services, with a projected real increase of 5.1 percent; • Government, with a projected real increase of 4.6 percent; • Retail Trade, with a projected real increase of 3.1 percent; • Finance, Insurance and Real Estate (FIRE), with a projected real increase of 2.9 percent; and • Transportation, Warehousing, Utilities and
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
Information (TWUI), with a projected real increase of 2.1 percent. For 2010, North Carolina establishments are expected to gain 32,800 net jobs. Job growth should begin once again in December 2009, ending 22 months of decline. Seven of the state’s ten nonagricultural sectors of the economy are expected to experience employment increases during 2010. The sectors with the strongest employment in Annual Growth Rates In Realincreases GSP 2010 are: 6 • Wholesale Trade at 5.4 percent, 4 6.5 2• Construction at 3.4 percent and 2.8 -3.6 -0.6 1.3 0• Services at 2.7 percent. -2 “The expectation is that the North Carolina -4 economy should begin a modest recovery during 2010f 2009f 2007 2006 2008 the second half of 2009,” Connaughton says. “The recession, which began in December 2007, is Year-End Seasonally Adjusted North Carolina expected to last at least six quarters. Unemployment Rates This would make 14 the 2008-2009 recession the longest since 12 the101982 recession, which lasted 16 months. The two8 most recent recessions were quite short; both 10.5 11.0 the 641991 and 2001 recessions lasted only eight 8.1 5.0 4.7 This 2 months each. recession is likely to be 17 or 18 2006 2007 2008 2009 f 2010f months in length.” QUARTERLY GROWTH RATES IN REAL GSP 4
3.0
2
3.8
0
-2
-4
-7.3
-7.6
2009 I
2009 II
-6
4
2009 III f
2009 IVf
QUARTERLY GROWTH RATES IN FORECASTED REAL GSP
3 2
3.6
3.8
3.1
3.8
2010 I
2010 II
2010 III
2010 IV
1 0
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 (December 10, 2009) is available at www.belkcollege.uncc.edu/forecast.
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[bizbits]
SHORTCHANGED BY MEDICAL DEBT Medical Debt Is a Problem for Almost Everyone A recent survey released by Families USA compiles some sobering statistics on the real cost of rising health care costs. On the Uninsured… " Nearly half (45 percent) of uninsured adults did not fill a prescription in the last year, and six in 10 (60 percent) had medical problems but did not see a doctor or visit a clinic in the last year. " Nearly three-quarters (71 percent) of uninsured adults said they experienced a problem with access to medical care. " One in five uninsured adults (20 percent) had $8,000 or more in medical debt.
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On the Underinsured… " One study found that 25.2 million adults under the age of 65 with continuous coverage for the entire year were actually underinsured. " Another study found that more than two in five adults (43 percent) who had insurance all year but who were underinsured reported not being able to pay their medical bills. " Nearly half of underinsured adults (46 percent) did not fill a prescription in the last year, and 42 percent had medical problems but did not see a doctor or visit a clinic in the past year. " Six in 10 underinsured adults (60 percent) had experienced some problem with access to medical care. On the Low-Income… " More than three out of five people (63 percent) in families that will spend more than 25 percent of their pre-tax income on health care in 2009 are from families that earn less than $30,000 a year. " The percentage of working-age adults with incomes below $20,000 with medical bill problems or accrued medical debt increased from 43 percent in 2005 to 53 percent in 2007.
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[bizbits] On the Middle-Classâ&#x20AC;Ś " More than one-third of people (37 percent) in families that will spend more than 25 percent of their pre-tax income on health care in 2009 are from families that earn more than $30,000 a year. " The share of moderate-income ($20,000$39,999), working-age adults with medical bill problems or accrued medical debt increased from 48 percent in 2005 to 56 percent in 2007 " The share of middle-income ($40,000$59,999), working-age adults with medical bill problems or accrued medical debt increased from 32 percent in 2005 to 39 percent in 2007.
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The Consequences of Medical Debt Postpone or Forgo Care " Nearly half (45 percent) of adults in 2007 reported having problems obtaining necessary medical care because of cost, an increase of 16 percentage points from 2001. " Medical debt poses barriers to access. Privately insured adults with medical debt are nearly five times as likely as privately insured adults without medical debt to postpone medical care due to cost (28 percent versus 6 percent). " Privately insured adults with medical debt are nearly three times as likely as those without medical debt to go without a needed prescription (24 percent versus 9 percent).
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Inability to Pay Other Expenses One survey of American households found that, due to high medical bills: " 13 percent had difficulty paying other bills, " 13 percent had used up all or most of their savings trying to pay off medical bills, and " 7 percent were unable to pay for basic necessities such as food, heat, or housing. Contributes to Credit Card Debt " Nearly one-third (29 percent) reported that medical expenses contributed to their current level of credit card debt. " Overall, 20 percent reported having major medical expenses in the past three years that contributed to their current level of debt. The study called these people â&#x20AC;&#x153;medically indebted.â&#x20AC;?
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" Average credit card debt was 46 percent higher for medically indebted families than it was for non-medically indebted families ($11,623 versus $7,964). Average credit card debt was 32 percent higher for medically indebted uninsured households than it was for medically indebted households with insurance ($14,512 versus $10,973). Causes Bankruptcy " The share of all bankruptcies that were related to medical problems increased by 50 percent between 2001 and 2007. " Nearly two-thirds of bankruptcies (62 percent) filed are now linked to medical reasons. " Patients whose illness contributed to bankruptcy faced high out-of-pocket expenses. Hospital bills were the largest expense for nearly half of patients (48 percent), while prescription drugs were the largest expense for nearly one in five (18.6 percent). Undermines Housing Security " One study found that 5.7 percent of homeowners who were filing for bankruptcy had mortgaged their homes to pay medical bills. " A study of low-income tax filers in eight U.S. cities found that more than one-quarter of respondents (27 percent) experienced housing problems, which included being unable to qualify for a mortgage, being unable to pay their rent or mortgage, or being turned down from renting a home, that resulted from medical debt. " In those cities, more than half of people (52 percent) with medical debt of at least $5,000 reported having a housing problem. Even relatively small amounts of medical debt can lead to housing problems: A substantial share of people (12 percent) with debt of less than $500 also reported having housing problems because of that debt. " A different study found that nearly half of home foreclosures (49 percent) in four states were caused, at least in part, by financial issues stemming from a medical problem, such as illness or injury, medical bills that were beyond the person’s ability to pay, or lost work because of their own medical problems or those of a family member. (www.familiesusa.org)
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