Greater Charlotte Biz 2011.02

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legalbiz

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consultingbiz

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webbiz

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bizprophet

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accountingbiz

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employersbiz

february 2011

for the

! ! ! Red Moon Marketing ! ! ! NouvEON ! ! ! Van Hoy, Reutlinger,

Adams & Dunn, PLLC

BE TT ER BCBSNC Leads in Health Care Reform

! ! ! Integra Staffing ! ! ! AAA Carolinas

Scan to view greatercharlottebiz.com

J. Bradley Wilson President and CEO Blue Cross and Blue Shield of North Carolina

CHANGE SERVICE REQUESTED 7300 Carmel Executive Park Dr., Ste. 115, Charlotte, N.C. 28226-1310

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Offer available to new subscribers who purchase one line of Business Class Phone and 7Mbpsx768Kbps Internet. Minimum two-year term agreement required. Offer includes up to 10 free email addresses. Standard installation rates apply. All Internet access tiers may not be available in all service areas. Standard construction rates (if applicable) apply. Offer applies to the unlimited local and long-distance calling plan only. Additional Business Class Phone lines are available at standard rates. Subscription to Internet access service required to receive Business Class Mobile service at $50 per month. Otherwise, standard Business Class Mobile rates apply. Business Class Mobile offer valid for customers in Business Class Mobile serviceable areas. Additional charges apply for taxes, fees, Directory Assistance, Operator Services and calls to international locations. Business Class Phone does not include backup power, and should there be a power outage, Business Class Phone, including the ability to access 911 services, may not be available. Offer valid for business customers in Business Class Phone serviceable areas. Early termination fee may apply. Expires 3/31/2011. Time Warner Cable Business Class is a trademark of Time Warner Inc. Used under license. ©2011 Time Warner Cable. All Rights Reserved.

in this issue

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cover story

Blue Cross and Blue Shield of North Carolina

“Before March 23, 2010, we were on an unsustainable path,” asserts Brad Wilson, president and CEO of Blue Cross and Blue Shield of North Carolina. “We were a train wreck waiting to happen. Now we are on the brink of an historic opportunity. If we seize the moment and act collaboratively, we can lead the country in showing how we can improve health care…We are a major player in health care reform—we’re fully engaged in trying to make it work.”

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departments

Red Moon Marketing With these thoughts on his mind, Bailey looked up at his office…He had left the light on, and through its glow he could see, in one corner of the window, the giant red Coca-Cola button that hung on his wall. It looked like a large red moon illuminating the inside of his office. The future was full of opportunity…

#$ NouvEON It is no longer sufficient to get ahead of the curve. Our dynamic and global business culture implores companies to find the best ways to optimize business value, executing their developed strategies while integrating people, process, and technology effectiveness. To break away from the pack, you have to provide value every day.

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legalbiz

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Transforming the Business of Law to Meet the Needs of Business

consultingbiz

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Managing and Delivering Change to Optimize Business Value

webbiz

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bizprophet

8

New Media Strategies, Secrets and Solutions

Engaging and Inspiring Thought Leadership in the New Millennium

accountingbiz

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Accounting, Tax and Consulting Solutions

employersbiz

21

Legislative and Regulatory Highlights for Area Employers

biznetwork

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on the cover: J. Bradley Wilson President and CEO Blue Cross and Blue Shield of North Carolina

Van Hoy, Reutlinger, Adams & Dunn, PLLC

legalbiz

|

consultingbiz

|

webbiz

|

bizprophet

|

accountingbiz

|

employersbiz

february 2011

for the

! ! ! Red Moon Marketing ! ! ! NouvEON ! ! ! Van Hoy, Reutlinger,

Adams & Dunn, PLLC

BETTER BCBSNC Leads in Health Care Reform

! ! ! Integra Staffing ! ! ! AAA Carolinas

Because their employment and health care legal practice is based on focused expertise, high-level client care and attention, and sustainable growth, all the partners agree that the future is unlikely to hold major surprises for them…and they try to ensure just as few surprises for their clients.

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publisher’spost

Scan to view greatercharlottebiz.com

Photography by Wayne Morris

J. Bradley Wilson President and CEO Blue Cross and Blue Shield of North Carolina

!"

"%

Michelle Fish says her award-winning recruitment and staffing firm has thrived because, “We are ‘intertwined’ with our clients. We know and understand their culture as well as they do. They do not have to continue to train us on the intangibles that it takes to make a specific person successful in their company.”

“At the end of the day, it’s not about selling. AAA Carolinas offers world-class service and a commitment to build a lifetime relationship with our customers so they will choose to come to us when they need the services we have to offer,” says Dave Parsons, president and CEO.

Integra Staffing

AAA Carolinas

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bcbsnc.com

Health Care Reform. It’s here.

But what does it mean for you? Find out what health care reform means for you — today — and in the years ahead. + For employers and employees + For health care providers + For all North Carolinians Visit nchealthreform.com

An independent licensee of the Blue Cross and Blue Shield Association. U7369, 9/10

[publisher’spost] That Damn “Individual Mandate� One of the most confounding and frustrating elements of the Patient Protection and Affordable Care Act, also known as “Obamacare,� is the “individual mandate� to acquire health care coverage from a private insurer of choice. No one wants to be required to purchase health care coverage, especially in light of the cost of coverage and the annual increases that continue to skyrocket. Why is this requirement necessary? John Paul Galles We all know that you cannot purchase home insurance when your house is on fire. Without having been paid insurance premiums, no insurance company would have the funds to provide coverage once a house was blazing away. The health insurance situation is analogous. No insurance company can provide health care coverage to individuals without having been funded by at least some premiums and being able to charge premiums sufficient to cover the health care costs of those individuals. However, the insurance companies did agree to the new law which included that they would no longer be allowed to deny coverage or to charge higher rates to applicants with pre-existing conditions. In so doing, they demanded that almost every American would be required to purchase coverage—i.e. to fund the pool. They anticipated offsetting the increased costs of immediately covering everyone with the substantial increase in revenue from the number of people paying premiums. Currently, about 80 percent of Americans have health insurance; about 59 million do not. The law stipulates that Americans who do not purchase coverage will be subject to withholding of tax refunds and penalties amounting to as much as $695 per adult and up to 2.5 percent of household income. Since the act was signed into law, more than 20 states have joined efforts challenging the constitutionality of the requirement to purchase insurance or the “individual mandate.� It is likely the issue will be hotly debated in many forums before being ultimately decided by the U.S. Supreme Court. Supporters hold that the mandate falls under the “Necessary and Proper Clause� of the Commerce Clause and/or under Congress’ power to tax. Opponents declare that the mandate is nothing less than a “commandeering� of the people and so is an unconstitutional attempt to force Americans to buy a product heavily regulated by government. Other scholars speak to the long history of Americans participating in social insurance, including income tax and Social Security and its pension and retirement features. Interestingly, in July 1798, Congress (including many of our founding fathers at the time) passed, and President John Adams signed into law, “An Act for the Relief of Sick and Disabled Seamen,� authorizing the creation of a government-operated hospital service, and mandating privately employed sailors to purchase health care insurance. The legislation also created America’s first payroll tax, as a ship’s owner was required to deduct 20 cents from each sailor’s monthly pay and forward those receipts to the service, which in turn provided injured sailors hospital care. As America grew, this system was expanded, eventually becoming our Public Health Service (the main division of HHS), led by the Surgeon General. That was coverage provided by the government out of funds collected by the government. The current individual mandate interjects private enterprise in the provision of coverage, forcing people to buy private health care insurance. It is an interesting piece of history to consider. It was prompted by our founders’ realization that a healthy maritime work force was essential to the nation’s economic health and growth. Perhaps in light of our increasingly competitive global economy, we should view today’s health insurance issue through the same lens. A healthy work force is more productive. We have enough disadvantages as we compete in the global economy without having to bear the costly burden of a health care system that is itself unhealthy. We’re draining resources and attention from other more productive areas of our economy. We need to determine what is fair and appropriate within the basket of reforms that encompass health care insurance and coverage. We cannot undo one without undoing the other. Democracy is not a stagnant condition, but an experience over time shaped by people and laws that change. Hopefully, we learn and choose to improve our experience from the lessons of our past. We need to get this right. biz

Let me know what you think - jgalles@greatercharlottebiz.com

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February 2011 6OLUME s )SSUE Publisher *OHN 0AUL 'ALLES X JGALLES GREATERCHARLOTTEBIZ COM

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Contributing Writers :ENDA $OUGLAS Carol Gifford (EATHER (EAD Casey Jacobus

Contributing Photographers 4REVOR !DAMS 7AYNE -ORRIS Galles Communications Group, Inc. #ARMEL %XECUTIVE 0ARK $R 3TE #HARLOTTE .# 0HONE s &AX www.greatercharlottebiz.com s 0RESS RELEASES AND OTHER NEWS RELATED information: editor@greatercharlottebiz.com. s %DITORIAL MLANE GREATERCHARLOTTEBIZ COM s !DVERTISING JGALLES GREATERCHARLOTTEBIZ COM s 3UBSCRIPTION INQUIRIES OR CHANGE OF ADDRESS subscriptions@greatercharlottebiz.com. s /THER INQUIRIES PLEASE CALL OR FAX AT THE NUMBERS ABOVE OR VISIT OUR WEBSITE www.greatercharlottebiz.com. Š Copyright 2011 by Galles Communications Group, Inc. !LL RIGHTS RESERVED 4HE INFORMATION CONTAINED HEREIN HAS BEEN OBTAINED FROM SOURCES BELIEVED TO BE RELIABLE (OW EVER 'ALLES #OMMUNICATIONS 'ROUP )NC 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 6IEWS EXPRESSED HEREIN ARE NOT necessarily those of Greater Charlotte Biz or Galles Com munications 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 X Greater Charlotte Biz )33. IS PUBLISHED monthly by Galles Communications Group, Inc., 7300 Carmel %XECUTIVE 0ARK $R 3TE #HARLOTTE .# 4ELEPHONE &AX 3UBSCRIPTION RATE IS FOR ONE YEAR 0/34-!34%2 3END ADDRESS CHANGES TO Greater Charlotte Biz, #ARMEL %XECUTIVE 0ARK $R 3TE #HARLOTTE .#

w w w. g re a t e rc h a r l o t t e b i z . c o m

7ISHART .ORRIS (ENNINGER 0ITTMAN 0 !

[legalbiz]

Transforming the Business of Law to Meet the Needs of Business

Dress Codes a Lawyer Would Love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

#Be Careful When You Fire When you are making a decision to terminate an employee’s employment, you must always be certain your decision does not violate the employee’s legal rights. More importantly, when you fire an employee, you must be very careful to not discuss why you are firing the employee. What you say in the conversation can hurt you. In Alabama, an employee repeatedly left work without approval and did not come back to work as a result of his seeking medical treatment for an on-the-job injury. When the HR manager discussed the problem with the employee, the employee, allegedly, told her to kiss a certain part of his body. The employee’s employment was terminated for both the comments and the violations of the employer’s attendance policies according to the employer. However, the employee was only told he was fired for leaving work early without permission. The employee sued the employer and won a $50,000 verdict for the termination of employment. While

the employee’s comments would have been enough to warrant termination of employment, the employer did not appear to make its decision based on that conduct. In another case, an employee sued his employer for age discrimination and retaliation for terminating his employment after he complained about his supervisor. The employer offered different reasons for the employee’s firing at the time of the firing, however, the employer lost its case. When you decide to terminate an employee, carefully consider why you are terminating the employee and how you will handle the termination. It is always a good idea to have two supervisors present during the discussions with the employee and to document your file with regard to any issues or problems with the employee as they happen. If you decide to tell the employee the reasons for the termination, be sure to also provide a letter to the employee including exactly what you discuss. Don’t get off track, and don’t let your emotions affect you during the meeting.

C O N S T R U C T I VE C A T A LY S T FO R C RE A T I VE C O N S C I O U S N E S S

#Rental Property = More Tax Reporting As discussed previously, businesses have to track, report and issue Form 1099s to any vendor receiving $600 or more from the business beginning in 2011. Previously, Form 1099s were not required to be issued to corporations. For any business owner (or any staff person involved in bookkeeping or accounting for a business), this means a lot more work and cost each year. If you own a property that you rent, you are now “conducting a trade or business� that must issue Form 1099s. Prior to 2011, the reporting requirement applied to larger rental property owners, but it did not apply to owners of just one property or owners who simply held a few rental properties for investment. Now, all owners, even if you own only one property as a small side investment, must comply with the reporting requirements. This means if you spend at least $600 with any vendor, you must collect certain information from them and issue a Form 1099 to them. Keep those receipts!

#Tax Law Changes You have probably been overwhelmed by the amount of news and discussions surrounding the new tax law that was passed in December. The biggest question facing most business owners involves what to do in light of this new law. Here are a few things you should know: ! This new law only applies in certain instances to 2011 or 2012. Make sure you know which benefits apply to which years so that you don’t miss some savings. !" This law does not provide a “permanent� solution. Most likely, there will be another frantic push at the end of 2012 to address what the law in 2013 will be. !" Married couples have the ability to transfer up to $10 million of property without federal gift tax. Individuals can transfer up to $5 million without federal gift tax. The amount you can transfer to grandchildren (better known as “generation skipping transfers�) free of the generation skipping transfer tax has also been increased to the $5 million per individual. Make those big gifts now! !"Because of the gift tax credit, estate planning that uses life insurance owned by trusts should be considered by anyone who has or expects to have more than $1 million in net worth. !"Bonus depreciation and accelerated expensing for certain assets make 2011 a great time to buy! !"For 2011 only, employees get a payroll tax break of 2 percent (up to $2,136 per person). !"Consider using a C corporation for a new business and have the opportunity to sell the stock in the future with no federal income tax due (subject to certain limitations)! !"If you own a corporation that converted from a C corporation to an S corporation, consider how the continued 15 percent dividend tax rate may help you plan. Likewise, if you own a C corporation, consider how that rate may help you plan.

~Gary Smith, Partner Content provided by Wishart, Norris, Henninger & Pittman, P.A., which 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, contact Robert Norris at 704-364-0010 or visit www.wnhplaw.com.

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[consultingbiz]

.OUV%/. 4ECHNOLOGY 0ARTNERS )NC Managing and Delivering Change to Optimize Business Value

Organizational Change Management in a Merger Integration Environment

I

ntegrating organizational cultures, both from the institutional standpoint and at the individual level, creates some of the greatest challenges posed by a merger or acquisition. In a post-merger environment, the challenge is always to bring different cultures together to build a coherent new whole. Successful implementation of these complex business transformations is increased by the proven track record of change management. Merger Integrations will greatly benefit from the creation and implementation of a well-structured end-to-end Change Management program because it bolsters the success criteria of complex organizational change. Successful organizational change requires that organizations anticipate the changes required in systems, processes and procedures in an ever-changing and unstable market. This will play out through many executives altering the way they think and act when making decisions and managing risk. For example, the economies of scale that have driven consolidation in many industries require continuing investments in computer and communications technology. Until now, when faced with large-scale change, hiring managers would first look to Project, Program or Portfolio Management resources to manage a program or project and the associated budget and resources, which are essential components to any initiative. However, failure to strategically place competent and experienced Change Management resources in leadership positions during a Merger Integration has resulted in significant organizational and process-related gaps, communication challenges, low employee-morale, attrition, pervasive inefficiencies, and many missed opportunities to recognize the full benefits of the change. Change Management programs focus on the people side of change, effectively aligning the people, processes, and technology elements required to transform current delivery and operations to a new paradigm.

Change Management in Action Change Management programs begin with an assessment of the anticipated impacts to associates, customers, and suppliers. Additionally, the assessment identifies items, which could create unnecessary risk or adversely impact user adoption, timing, or the quality of the delivered solution. Change Management programs utilize a number of tools to complete these assessments and planning, including: !Stakeholder analysis !Organizational design !Learning needs assessment and training !Communications plans !User readiness and Steve Bindrich, impact assessments Senior Consultant, Organizational Change !Transition management Management Research has identified the number one obstacle to

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successful change management as employee resistance and ineffective peopleside program management. To minimize user resistance, effective and targeted communications are critical. Change Management programs can support Merger Integration programs in several key ways: ! How fast—impacts the speed of change adoption U How fast employees buy-in to the need for change and participate in the new solution U How fast employees acclimate to the new organizational culture and adopt the go forward model ! How many—affects the utilization rate U How many employees “opt out� of the solution ! How effective—impacts the proficiency of employees with new changes U What is the cumulative improvement of each employee who will do their job differently as a result of the changes U Improves time to target effectiveness !"How much—reduces the impact of “failure� U How many employees commit to the newly combined organization U Reduces cost of supporting dual systems, fines, and noncompliance costs Merger Integration programs offer firms an excellent opportunity to manage their organizational load as well as develop new relationships with their customers and expand their client base. Internally, these initiatives offer the opportunity to revisit and revise key business processes, increasing efficiency and effectiveness. However, the programs are complex and not an automatic success. To succeed, firms must carefully assess organizational impacts and carefully retool many business processes. By utilizing change management tools within this approach, organizations can plan to realize the potential benefits of mergers and acquisitions. To effectively manage and deliver change, it’s critical to understand the stakeholders—how will they be impacted, how are they rewarded, what will they gain by the change, and what will they lose. These answers help identify resistance issues to build a profile of each stakeholder. This information is critical to the development of change initiatives because one of the most successful and effective means to manage and deliver change is to use targeted communications and training to address resistance issues proactively, while mitigating the rumor mill. A strong analysis of your stakeholders will guide you in the development of targeted strategies designed to inform, influence and prepare for the adoption of change. Content contributed by NouvEON, a management consulting firm. For more information, visit www.nouveon.com. To contact NouvEON’s Organizational Change Management expert, e-mail him at sbindrich@nouveon.com or follow on Twitter@NouvEON.

w w w. g re a t e rc h a r l o t t e b i z . c o m

CC Communications, Inc.

[webbiz]

New Media Strategies, Secrets and Solutions

!!!

WORK Technology Group – #Southeastern Unique Selling Position Pop quiz—What makes your company, product or service unique? Hurry now. You typically have 10 seconds or less to communicate your unique selling position to your website or landing page visitors. If your site does not clearly define and differentiate your services, you risk losing visitors and business to competitors with better sites. The new website for Southeastern Technology Group offers great unique selling positions. In just a few seconds, visitors to the Southeastern home page at SoutheasternInc.com know that Southeastern is a top source for VDI, technical consulting, IT migration and unified communications. The About Us page also does a great job of boiling down and presenting key points regarding their targeted IT infrastructure consulting services.

QUESTION

&

ANSWER Q:

Which website content management tool should I use? ~Charlotte, NC

A:

Good question. Understanding your needs a little better can help you arrive at the right answer. How many people contribute content to your website? What type of content do they contribute? If editing needs are basic, such as page text, calendar of events items, press releases or blogs, then off the shelf tools like DotNetNuke (DNN), WordPress or Joomla are probably sufficient. More complex content management needs involving items like RSS feeds, graphics, image rotations and custom applications require a more advanced solution, such as SiteFinity CMS. Open source, Web-based tools like these offer flexibility and ease of editing and building content. They can be incorporated during website design, redesign, or even integrated into an existing website.

Have a question about Web design or online marketing? Submit your question to www.greatercharlottebiz.com/webbiz. Questions & Answers may be reprinted here in upcoming editions of Greater Charlotte Biz! Content provided by CC Communications, a Web design, programming and Internet media company providing a full array of services to businesses and organizations to enhance and produce effective Web, e-mail, multimedia marketing initiatives and business process improvements. For more information, contact Kip Cozart at 704-543-1171 or visit www.cccommunications.com/resources_articles.cfm.

C O N S T R U C T I VE C A T A LY S T FO R C RE A T I VE C O N S C I O U S N E S S

Ring...Ring The Web is Calling 7EB CONNECTED SMART PHONES HAD A BIG IMPACT ON IN STORE CONSUMER SHOPPING BEHAV IOR THIS PAST HOLIDAY SEASON !CCORDING TO A SURVEY JUST RELEASED BY -OTOROLA -OTOROLA 3OLUTIONS OF SHOPPERS ACCESSED INFORMATION ON THEIR MOBILE PHONES WHILE ON LOCATION WHICH INmUENCED THEIR DECISION TO WALK OUT OF THE STORE AND COMPLETE THEIR PURCHASE ELSEWHERE OF THOSE SHOPPERS DIRECTLY COMPARED THE PRICING OF OTHER RETAILERS AND CHECKED AVAILABLE PRODUCT INVENTORY AT OTHER NEARBY OUTLETS 4HIS MEANS #USTOMERS ARE NOW EQUIPPED AND CONDITIONED TO ACCESS ONLINE INFOR mation and to compare your offerings to that of your competitors anytime and ANYWHERE &OR BUSINESS TO CONSUMER AND BUSINESS TO BUSINESS ENTERPRISES ALIKE THE IMPACT OF IMMEDIATE ON DEMAND 7EB CONTENT IS A SIGNIlCANT SALES hGAME CHANGER v $OES YOUR COMPANY S 7EB STRATEGY STACK UP )T S TIME TO STRENGTHEN your mobile Web channel. Think “Mobile Maximization.â€? The race is on‌ 4HE SPEED AND ACCESSIBILITY OF YOUR 7EB CONTENT IS BECOMING increasingly important to the mobile user. If critical information cannot be found EASILY AND ALMOST IMMEDIATELY THE VISITOR WILL SIMPLY JUMP OVER TO ANOTHER COM PETITOR S WEBSITE AND KEEP SEARCHING 3TREAMLINE YOUR PRESENTATION CONVEYING THE MOST COMPELLING CUSTOMER BENElT lRST WHILE PROVIDING SECONDARY SELLING POINTS A FEW CLICKS LATER 3IMPLIFY THE TOUCH SCREEN CONTROLS IN THE PAGE OFFERING JUST A FEW CLICK POINT CHOICES WITHIN ANY SCREEN VIEW )NCLUDE A SIMPLE KEYWORD SEARCH TO JUMP CUSTOMERS DIRECTLY TO DESIRED CONTENT MORE QUICKLY Managing on-demand price comparisons‌ 7ITH THE RISE OF ON SITE COM PARATIVE SHOPPING MOBILE 7EB SHOPPERS EXPECT GREATER PRICE TRANSPARENCY FROM VENDOR TO VENDOR ONLINE 4HIS POSES A DILEMMA FOR MANY BUSINESSES THAT DIFFERENTI ATE THEIR PRODUCTS WITH QUALITIES OTHER THAN PRICE OR MUST PROVIDE CUSTOMIZED QUOTES DUE TO THE NATURE OF THEIR BUSINESS (OWEVER IF YOU OFFER NO SPECIlC PRICING IT IS LIKELY THAT potential customers will pass you by as they search for OTHER COMPARATIVE PRICING )F YOU CHOOSE TO POST PRICING on your site, position it predominantly on the page. If you choose not to post pricing, then your mobile content has to WORK HARDER TO ENGAGE THE CUSTOMER IN OTHER WAYS The key is engagement‌ Consider these approaches: ! !DD A hCLICK TO CALLv OPTION ENCOURAGING VISITORS TO hCALL NOW v PROMISING IMMEDIATE ASSISTANCE IN A NON PRESSURE ENVIRONMENT -AKE SURE THAT YOU HAVE STAFF AVAILABLE TO RECEIVE CALLS WHEN CUSTOMERS ARE MOST LIKELY SHOPPING FOR YOUR SERVICES !"/FFER A hTEXT RESPONSEv OPTION THAT DELIVERS THE REQUESTED information right to the customer’s cell phone within moments OF THE ORIGINAL REQUEST 4HIS ALLOWS YOU TO QUICKLY PRESENT SEN SITIVE INFORMATION THAT IS NOT OTHERWISE POSTED ON YOUR PUBLIC WEBSITE SUCH AS PRICING PAYMENT OPTIONS AND UNIQUE VALUE STATEMENTS 3-3 SHORT MESSAGE SERVICE TEXT RESPONSES CAN BE AUTOMATED DELIVERING PREWRITTEN RESPONSES MATCHING A MENU OF FREQUENTLY ASKED QUESTIONS 5SE FOLLOW UP TEXTING TO EXTEND THE SALES CONVERSATION AND solidify the opportunity. !" /FFER EXCLUSIVE INCENTIVES TO THE MOBILE SHOP PER WHO MAKES THE EXTRA EFFORT TO COMMUNICATE WITH YOU /FFER A hFREE CONSULTINGv SESSION A NON PUBLISHED discount if the prospect contacts you within the NEXT MINUTES ~Kip Cozart

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[bizprophet]

4HE 0ERFORMANCE 'ROUP ,TD Engaging and Inspiring Thought Leadership in the New Millennium

Capital is one of the core elements of your business model. You know that. Capital is a foundation of every successful enterprise. Like every foundation, it needs to be reliable and strong. The winds have blown so long and hard and the ground has shifted enough that it’s time to make sure there’s no structural damage to that foundation. Enterprise leaders who are still standing can feel pretty good about our ability to fight the good fight. We’ve managed to stay on top of our obligations. We still have customers or clients knocking on our door—or at least answering the door when we knock. Maybe we’ve launched an innovation or two that captured the market’s attention. Our cash management strategy is still allowing liquidity and buying time. And we’ve trimmed a few pounds off the company’s waistline. In modern-day capital circles, we’re called survivors. We may not quite be on Easy Street, but we’ve still got our shingle out on Main Street. But if you’re like me, you’re also sensing something in the air, some telltale sign that we need to pay attention. Like parents, founding owners have a sixth sense about vulnerability or exposure. Our gut knows when something is going on and right now, I have an uneasy feeling. Here’s what it is: Our capital sources are unusually uncertain and testy. When Capital becomes testy, we’d better be stirring, too.

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In recent months, I’ve made it a point to seek out and listen to capitalists. I’ve been trying to understand what’s on the mind of Capital and what that’s going to mean for private enterprise owners in 2011. My quick takeaways: ! Capital is skittish. !"Capital wants limited exposure and back doors. !"Capital wants it fast. !"Capital is pent up. Nothing revolutionary here. Capital has always liked to minimize risk and maximize return. Capital has always been opportunistic and pragmatic. But today, Capital is feeling as thwarted by economic uncertainty as you and I. What’s intensified in this season is the frustration on both sides. Capitalists are testy because they can’t find healthy deals that satisfy their low risk-tolerance and their high expectations. Entrepreneurs are testy when they miss opportunities because they can’t get their hands on the capital they need to manage their risks, to create opportunities, to innovate. The most significant imperative of 2011 for enterprise leaders is this: Keep your eyes on Capital—its health, its availability and its fluidity. Owners who don’t pay attention to the stability of their relationship with their capital partners may be shocked to realize, sooner rather than later, that their capital partners have folded their tents and gone home.

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the performance group

You know the Golden Rule of Business: The one who has the gold makes the rules. Owners who play successfully by this Golden Rule learn to think like a capitalist. When we understand the capitalist’s world view, the playing field becomes more level. ! Fundamentals lower the risk. Capitalists want to know that we have a healthy respect for the lifeblood resources of the business. Lifeblood fundamentals lower the risk. !"Think big pay-off. What Capital wants today is next to impossible. It’s afraid of missing the next Facebook but it doesn’t feel bold enough to speculate on the unproven. Offer both caution and the potential for exponential growth. ! Fluidity beats innovation. Although Capital is risk averse, it still wants to know you aren’t static and have an eye for the future. When courting Capital, we must speak the language of fluidity and flexibility, while retaining the innovation and creativity that allows continuous adaptation. !"Make it quick. Capital is more shortsighted than ever. Investors are no longer investing for 10 years; it’s closer to three years, with a way out. Bankers who once looked at three years are now thinking six months and proof of the pudding. !"Visionaries are out, survivalists are in. Too much vision comes across as a mirage. Capital wants proven performance. Execution trumps vision. !"No start-ups, no turnarounds. There are always exceptions. But don’t hold your breath for angels to arrive. !"Capitalists pick their own charities. If they’re investing, they want a return. When they’re ready to give their money away, they’ll pick their own charity. And it’s not likely to be my business or yours.

Some Words of Encouragement… For years, I’ve talked to business owners about the need to become the capitalist to their own business by putting in place a capital strategy that drives liquidity out of their penny stock and onto their private balance sheet. Owners who built their strength as capitalists to their own business during the boom years have more options today. In fact, I see bankers and investors knocking on their doors. The owners who didn’t build their balance

sheet outside their enterprise, well, they’ve either already left the dance floor or they’re wearing themselves out trying to keep up with the music. Talking about a capital strategy may sound futile for business owners struggling with the tyranny of landing business or making payroll. But a business that intends to survive should be paying attention to its capital strategy now. It’s not over till it’s over and anything an

owner does to address capital issues could buy the time needed to stay in the game. And we all know the secret is to stay in the game. Content provided by Sam Frowine, founder and owner of The Performance Group, which works with business owners to build the value of their business asset, and Performance Capital Group, a boutique investment bank. For a complimentary copy of Enterprise Capital 2011 about implementing a successful capital strategy, contact him at 704-597-5156 or sam@ theperformancegroupusa.com.

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[accountingbiz]

%LLIOTT $AVIS 0,,# Accounting, Tax and Consulting Solutions

""""""What Will the Tax Relief Act Do for Your Business in 2011?

Dan Warren, CPA, Managing Shareholder

Your business planning for 2011 is in full swing, plus it’s tax time. What impact will the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 have on this process? Likely, it will be a positive one. The Tax Relief Act extends, renews or enhances a large number of business tax incentives. Highlighted below are some key business tax incentives in the new law.

Bonus depreciation To help ignite business spending, the new law provides for 100 percent bonus depreciation for qualified property acquired after September 8, 2010 and before January 1, 2012 and placed in service before January 1, 2012 (or before January 1, 2013 for Richard Battle, CPA, certain longer-lived and transportaTax Shareholder tion property). Qualified property is defined as a new property (original use commences with taxpayer) that either has a MACRS recovery period of less than 20 years, computer software, water utility property, or qualified leasehold improvement property. Additionally, 50 percent bonus depreciation is available for qualified property placed in service in 2012. In addition, certain corporations may be Business planning for able to elect to accelerate any alternative minimum tax (AMT) credit in lieu of bonus 2011 is in full swing; depreciation.

what impact will the new Tax Relief Act have on this process? Likely, it will be a positive one.

Code Sec. 179 expensing

The new law extends enhanced Code Sec. 179 expensing for 2012 but not at the 2010 and 2011 dollar and investment limits. For 2010 and 2011, the Code Sec. 179 dollar limit is $500,000 and the investment limit is $2 million. The new law makes no changes to these limits for 2010 and 2011. However, the dollar limit will fall to $125,000 (indexed for inflation) and the investment limit will fall to $500,000 (indexed for inflation) for tax years beginning in 2012 (and sunsetting after December 31, 2012). The 2012 amounts, while reduced from 2010 and 2011, are still above the amounts that would have been in place for 2012 absent the new law ($25,000/$200,000 respectively).

Payroll tax cut The new law reduces an employee’s share of Social Security taxes (the OASDI portion) from 6.2 percent to 4.2 percent up to the taxable maximum amount of $106,800 for calendar year 2011. The new law does not reduce the employer’s share, which remains at 6.2 percent for 2011. Self-employed individuals, including independent contractors with which a business may contract, are also entitled to a two percentage point reduction in payroll taxes, from 12.4 percent to 10.4 percent. The IRS has instructed employers to start using new withholding tables and reducing the amount of Social Security tax withheld no later than January 31, 2011. The IRS also instructed employers to make any offsetting adjustments in an employee’s pay for Social Security overwithheld no later than March 31, 2011.

Tax brackets Businesses owners, such as sole proprietors, who are taxed at the individual tax rates will benefit from an extension of reduced individual tax rates. The new law extends for two years (2011 and 2012) the current individual tax rates of 10, 15, 25, 28, 33, and 35 percent. Without the new legislation, all of the rates would have risen with the top two rates increasing from 33 and 35 percent to 36 and 39.6 percent respectively.

Estate tax Under the new law, the federal estate tax will again apply to the estates of decedents passing after December 31, 2009. The new law sets a maximum estate tax rate of 35 percent with a $5 million exclusion ($10 million for married couples). Additionally, executors of estates of individuals who died in 2010 can elect out of the estate tax (and apply modified carryover basis rules) or can elect to have the estate tax apply.

Research tax credit While not permanent, the new law renews the credit, which expired at the end of 2009, for 2010 and 2011.

Work Opportunity Tax Credit Aimed at rewarding employers who hire economically-disadvantaged individuals—and individuals from groups with historically high rates of unemployment, the Work Opportunity Tax Credit (WOTC) has been extended through the end of 2011. However, the new law does not extend two groups who were added to the credit in 2009 (unemployed veterans and disconnected youth).

Qualified real property For 2010 and 2011, special rules apply to qualified real property. Taxpayers can elect up to $250,000 of the $500,000 dollar limit for qualified leasehold improvement property, qualified restaurant property and qualified retail improvement property. The new law does not extend these special rules beyond 2011. The new law does renew a 15-year recovery period for qualified leasehold improvement property, qualified restaurant property and qualified retail improvement property for 2010 and 2011.

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Energy In order to encourage the development and production of alternative fuels, the new law extends, renews or enhances some of temporary incentives we have seen recently in the tax code, including: ! Grants for certain alternative energy property in lieu of tax credits !"Tax credits for biodiesel and renewable diesel fuel !"Tax credit for refined coal facilities

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! Percentage depletion for oil and gas from marginal wells !" Special tax incentives for builders of energyefficient homes

Business tax extenders A slew of business tax incentives, known as extenders, were renewed by the new law. They include: ! Differential wage credit !"New Markets Tax Credit (with modifications) !"Brownfields remediation !" Tax treatment of certain dividends of RICs and certain investments of RICs !" Active financing exception/look-through treatment for CFCs !" Tax incentives for empowerment zones and the District of Columbia !"Indian employment credit !"Railroad track maintenance credit !"Mine rescue training credit !"Code Sec. 199 deduction for Puerto Rico !"Five-year write-off of farm machinery !"Accelerated depreciation for business property on an Indian reservation

Exclusions Despite consideration, the new law did not: !"Repeal a controversial expansion of information reporting. The Patient Protection and Affordable Care Act of 2010 requires businesses to report payments for property and payments to corporations aggregating $600 or more in a calendar year made after December 31, 2011. Congress may revisit this requirement before the effective date. !"Lower the corporate tax rate.

Contact your tax advisor These provisions may not apply to all businesses or individuals. It is best to seek advice from a tax professional to determine how these incentives factor into your business plan or specific situation. Content contributed by the Charlotte office of Elliott Davis, PLLC, an accounting, tax and consulting services firm providing clients the solutions needed to achieve their objectives in 10 offices throughout the Southeast. For more information, contact Dan Warren at dwarren@elliottdavis.com or Richard Battle at rbattle@elliottdavis.com or visit www.elliottdavis.com.

IMPACT ON INDIVIDUALS Tax Relief Act

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 also impacts individuals in a number of ways, among the most far-reaching being reduced individual income tax rates and an across-theboard payroll tax cut for 2011. Here are some general highlights:

through 2012 s Extension of the enhancements to the student loan interest deduction through 2012 s Extension of the $2,000 Coverdell Education Savings Account contribution limit and other enhancements through 2012

General: s New two-percentage-point payroll tax cut for employees in 2011 s Extension of the lower ordinary income tax rates for all tax brackets through 2012 s Extension of marriage penalty relief through 2012 s Extension of the elimination of itemized deduction and personal exemption phaseouts through 2012 s Extension of the deduction for state and local sales taxes in lieu of state and local income taxes through 2011 s Extension of the increased alternative minimum tax (AMT) exemptions through 2011 (the so-called “AMT patch”) s Extension of the ability to offset AMT liability with certain nonrefundable personal credits through 2011

Charitable giving: s Extension of the ability to exclude from income direct contributions from IRAs to qualified charities (up to $100,000 annually) through 2011 s Extension of the ability to take a larger deduction for donations of long-term capital gains real property for conservation purposes through 2011

Investing: s Extension of the lower long-term capital gains rates through 2012 s Extension of the lower qualified dividend tax rates through 2012 s Extension of the 100 percent gain exclusion on certain qualified small business stock to stock acquired through 2011 Children and education: s Extension of the $1,000 child credit and other enhancements of the credit through 2012 s Extension of the higher adoption credit and income exclusion for employer-provided adoption assistance through 2012 s Extension of the higher dependent care credit through 2012 s Extension of the American Opportunity education credit through 2012 s Extension of the above-the-line tuition and fees deduction through 2011 s Extension of the income exclusion for employer-provided education assistance

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Estate planning: s Reinstatement of the estate tax for 2010 with a top rate of 35 percent and a $5 million exemption (compared to 45 percent and $3.5 million for 2009) s Option for estates of taxpayers who died in 2010 to elect to follow the pre-Tax Relief Act regime—no estate tax but limits on step-up in basis for transferred assets s Reinstatement of the generation-skipping transfer (GST) tax for 2010 at a 0 percent rate with a $5 million exemption (compared to 45 percent and $3.5 million for 2009) s Decrease in the top estate and gift tax rates and the GST tax rate to 35 percent for 2011 and 2012 s Increase in the estate, GST and gift tax exemptions to $5 million for 2011, indexed for inflation in 2012 s Ability of the estate of a taxpayer who dies in 2011 or 2012 to elect to allow the surviving spouse to use the deceased’s unused estate tax exemption

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Everyone has a window of opportunity Your time is now! So set your sights high…

Shoot for the Moon!

With these thoughts on his mind, Bailey looked up at his office…He had left the light on, and through its glow he could see, in one corner of the window, the giant red Coca-Cola button that hung on his wall. It looked like a large red moon illuminating the inside of his office. The future was full of opportunity… In that moment was born the idea for a company that would remain grounded in the Coca-Cola culture…that would eventually spread its glow over many other endeavors—a diverse and dynamic business that would illuminate the market with lively events backed by a full complement of marketing and PR services. And that company would be named Red Moon Marketing.

by heather head

ne night, when Jim Bailey walked out of his office on the third floor of the Coca-Cola Consolidated office building in SouthPark, he knew his time with the company was coming to an end. With mixed emotions he exited the building into the moonlit night, and walked to his car. The future was full of opportunity, and he knew he’d be taking some of Coke’s marketing experience with him, but it would be hard to let go of the fierce brand loyalty he had developed over the nearly 20 years he had invested in the brand. With these thoughts on his mind, Bailey looked up at his office from the parking lot. He had left the light on, and through its glow he could see, in one corner of the window, the giant red Coca-Cola button that hung on his wall. It looked like a large red moon illuminating the inside of his office. In that moment was born the idea for a company that would

[bizPROlLE]

Bailey, “people heard that I was out and about, and we had a wonderful chance to start doing some work for other folks.” At first, the company was a one-man show. But he wasn’t alone, really. An old friend, Greg Mercer, came to join him. Then came Shyloe Cummings, Greg Luehrs and Jimmy Harte, who had all worked with him at Coca-Cola. He couldn’t afford to pay large salaries, though; they all drove vehicles themselves and helped with events. In 2003, he was able to bring Cummings into the company as a full-time paid employee. As word spread that Red Moon was the go-to company for branding events, Bailey was soon able to hire Luehrs, Mercer and Harte as well. “Once these folks showed up,” says Bailey, “we grew exponentially. I would say if it wasn’t for these four people, we wouldn’t be anywhere near as successful as we are right now.” First the Coca-Cola / Winn-Dixie account team, then the Coca-Cola / Eckerd account team, then Harris Teeter hired

shoot for the Moon Red Moon Marketing Opens Your Window of Opportunity

remain grounded in the Coca-Cola culture, even maintaining offices inside a Coke building, but that would eventually spread its glow over many other endeavors—a diverse and dynamic business that would illuminate the market with lively events backed by a full complement of marketing and PR services. And that company would be named Red Moon Marketing. First Phase When the Coca-Cola System reorganized Bailey’s department in 2002, a good segment of his responsibilities were moved to the parent company in Atlanta. But Bailey had three children in school in Charlotte and didn’t want to uproot them. “So I talked to Frank Harrison, chairman of Consolidated and a good friend of mine,” remembers Bailey. “He gave me some great advice about how to go out on my own while still helping Coke during their transition.” “A couple months after the Coca-Cola re-organization,” says

C O N S T R U C T I VE C A T A LY S T FO R C RE A T I VE C O N S C I O U S N E S S

Red Moon. The business grew quickly the early years were exhilarating, but they were not easy. The event marketing industry is challenging to employees because it requires a large amount of travel and unusual working hours. Additionally, the Red Moon team was determined to hire new employees carefully, and that takes time. Frequently, the need for a new employee arose many months before the right person could be identified for the position. So at first, Bailey, and his key friends and employees, ran both the business and the vehicles. The hours were grueling, but the team were like family. And because of their care in hiring, new employees become like family too. Now, at 18 employees, Red Moon Marketing continues to be tight-knit. The company specializes in designing and implementing brand-building events, including a wide array of traveling exhibits for companies like Harris Teeter, Jack Daniel’s, and Fetzer Vineyards. $

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Jack Daniel’s Experience, a “distillery on wheels�

Harris Teeter

(l to r) back: James E. Bailey, President and CEO; Greg Luehrs, 3ENIOR 6ICE 0RESIDENT Front: Jimmy Harte 6ICE 0RESIDENT Shyloe Cummings 3ENIOR 6ICE 0RESIDENT

Coca-Cola

The company specializes in designing and implementing brand-building events, including a wide array of traveling exhibits for companies like Harris Teeter, Jack Daniel’s, and Fetzer Vineyards. Harris Teeter was one of their first major clients. The grocery chain enjoys a strong presence in Charlotte, and in the early 2000s they were looking to expand their footprint. They turned to Red Moon to pave the way. The first step was to promote their Together in Education program, which allows parents and educators to earn money for their schools when they purchase Harris Teeter brand products and use their VIC cards. To build awareness and participation in the program, Red Moon drove a bus to schools in the targeted area and implemented

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fun, educational programs for the students, encouraging them to have their parents sign up for the program so their school could receive the funds, and then drove to a nearby store to encourage shoppers to sign up. “So we took that little bus all over,� remembers Cummings, “and that was what started our relationship with Harris Teeter. We were then able to grow our business with them.� Red Moon now additionally manages the Harris Teeter Rancher truck, several ice cream trucks and the e-VIC mobile, plus a Red Moon employee works on-site at Harris Teeter corporate to help coordinate their mobile marketing and sports marketing efforts. Full Moon The lobby of Red Moon marketing is decorated, predictably, in shades of red. It boasts trophies and trinkets from various successful endeavors. On one shelf rests a NASCAR helmet emblazoned with the words, “Drink Responsibly.� Luehrs recalls that’s when they began working with Jack Daniel’s. NASCAR had just repealed the rules that had banned spirit companies from sponsoring teams, and Jack Daniel’s was eager to get into the game. The brand’s parent company, Brown-Forman, hired Red Moon to help interview teams (they chose Richard Childress Racing), activate the sponsorship, and execute a mobile marketing experience for NASCAR events. The partnership escalated Red Moon’s reach and allowed

them to add significant staff. Red Moon merchandised the Jack Daniel’s Experience, a “distillery on wheels� inside a tractor trailer, which is driven to events and opened for public tours. Visitors see how the product is made, learn a little bit about Mr. Jack, view demonstrations, and talk to representatives. What they don’t get are any free samples. (Sorry, fans!) That fact highlights an important aspect of the Jack Daniel’s branding effort. NASCAR requires spirit brands to devote at least 25 percent of advertising space to messages about responsibility. It’s a commitment both Jack Daniel’s and Red Moon take seriously. In fact, Red Moon has its own strict policy regarding drinking: “Enjoy the first one, sip the second, decline the third,� says Bailey. For Red Moon, responsibility goes beyond simply not drinking and driving. Their commitment to doing right by their clients, by the public in general, and by the environment, resonates in everything they do. For instance, they have an office policy of delivering documents electronically when possible (at the bottom of every company e-mail: “Please don’t print this unless you really need to�). More significantly, many of their customer events center on environmentally friendly activities and healthy lifestyles. The Red Moon team volunteered to convert used Coca-Cola syrup barrels into recycling bins for schools. A comment under a Facebook photo says: “All 38 CMS middle schools now have recycling barrels thanks to Coca-Cola.� One particularly successful recycling project, that has been picked up and expanded into additional cities, began with Coke’s commitment to improve their image as a good community citizen. The project, called “Recycle and Win,� involved stickers and instructions to more than 260,000 Mecklenburg County residents, encouraging proper recycling behaviors.

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“In my wildest imagination I would never have believed that we could keep the integrity of people and the fun family atmosphere going the way we have. It doesn’t really matter how much money we make or what big accounts we get, if we can leave a positive impression on customers, vendors and partners the way our people are doing right now‌ that’s just a joy to watch.â€? ~James E. Bailey President and CEO “If you want to participate,â€? explains Harte, “you stick the sticker on your recycling bin. Then our Prize Patrol rides around looking for stickers.â€? Residents who have the sticker and are recycling properly, receive a $100 Harris Teeter gift card. “We wanted people to know that Coke cares about the same things that they care about,â€? says Harte. The program was so successful that Raleigh, and soon other cities, began requesting it in their municipalities too. The Red Moon Way Combined, Red Moon boasts many decades of event marketing expertise, but they are not resting on their laurels. In fact, the leadership team agrees that the one thing setting them apart is a strong commitment to constant improvement. “There isn’t anybody in this room that can’t be better tomorrow than they are today,â€? says Bailey. “And very frankly, if you’re aggressively and creatively trying to solve problems, and come up with good innovative business building solutions, you’re going to make a few mistakes.â€? At Red Moon, all feedback—good, bad and neutral—is considered positive feedback. Their commitment to learning from every experience expresses itself in the evaluation documents created for every event. Each evaluation includes an overview of the event’s goals, related events, measurable results, outline of any challenges or negative events, photographs, and both a Red Moon and a customer rating of the event. Evaluations are developed by the activation team from each event. The Red Moon culture is so committed to delivering them in a timely fashion that an activation team may return from an event late into the night and still show up to the office first thing the next morning to prepare the evaluation. A theme that runs through much of what Red Moon does is partnership. A sense of family and working together pervades the company, even outside the circumstance of two

of its principals (Cummings and Luehrs) being married. Having traveled extensively together and putting so much heart into all their endeavors, everyone tends to look out for each other. Perhaps their own sense of partnership is what makes the company so good at fostering relationships among businesses and governments. They connect schools and community organizations with companies that can help them financially while benefitting from the accompanying positive brand associations, and they partner businesses that can help each other increase sales and brand recognition. Most of this partnership ends up benefitting the community considerably. For instance, they partnered Coca-Cola with PAL (the Police Activities League) to refurbish a basketball court, so officers can play basketball with atrisk youth while helping them learn the skills they need to stay in school and succeed in life. The Next Phase Like most companies, Red Moon has taken a few hits from the economy. Jack Daniel’s discontinued the NASCAR program, and several clients either went out of business or reduced the number of their activities. But the company has not had to lay anyone off and, in fact, they may be hiring again soon. “Right now we’re seeing a lot of people looking to get back into the event world,� says Luehrs. “They may not be as big a project as NASCAR, like we were used to a couple years ago, but it’s project by project, and I think we will continue to see that grow.� Red Moon expects to expand its other marketing services, especially graphic design and social media. They have experience in bringing products from nothing to multi-million dollar brands, and it’s an area they’d like to grow. “As our activation team members get married and want to have kids, and maybe aren’t wanting to be on the road all the time anymore,� says Cummings, “I think it would be great to have a home for them here, because they’re already familiar with the Red Moon

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way.â€? Growing the non-event marketing services are opening up those opportunities. Whatever the next five years bring, Bailey is looking forward to it. “In my wildest imagination,â€? he says, “I would never have believed that we could keep the integrity of people and the fun family atmosphere going the way we have. “It doesn’t really matter how much money we make or what big accounts we get, if we can leave a positive impression on customers, vendors and partners the way our people are doing right now‌ that’s just a joy to watch.â€? biz Heather Head is a Charlotte-based freelance writer.

Red Moon Marketing, LLC 4100 Coca-Cola Plaza, Ste. 215 Charlotte, N.C. 28211 Phone: 704-366-1147 Principals: James E. Bailey, President and #%/ 'REG -ERCER 3ENIOR 6ICE 0RESIDENT !CCOUNT 3ERVICES 3HYLOE #UMMINGS 3ENIOR 6ICE 0RESIDENT 'REG ,UEHRS 3ENIOR 6ICE 0RESIDENT *IMMY (ARTE 6ICE 0RESIDENT %DDIE "URKLIN #&/ Employees: In Business: YEARS Business: 3PECIALIZES IN DESIGNING AND ACTIVATING BRAND BUILDING EVENTS INCLUDING A WIDE ARRAY OF TRAVELING EXHIBITS ALL BACKED BY A FULL COMPLEMENT OF MARKETING AND 02 SERVICES Recognition: Charlotte Business Journal Best 0LACES TO 7ORK AND &ASTEST 'ROWING 0RIVATE #OMPANIES 3MALL "USINESS #OMMERCE !SSOCIATION S "EST OF "USINESS !WARD www.redmoonmkt.com

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[bizPROlLE]

by zenda douglas

curve GETTING AHEAD of the

Is Not Enough

NouvEON Helps Companies

N

ouvEON was founded in 2003 by two former Big Five consulting firm executives experienced in program and change management, and Internet technology. Now in their eighth year at the helm of the management consulting firm, T.J. Eberle, president and CEO, and Jeff Hobensack, vice president, finance and administration, enjoy annual revenues in excess of $20M with more than 110 employees. T.J. is the risk taker, Jeff is the conservative, the two agree. They balance each other for the benefit of the company and its employees. They’ve had plenty of time to work it out. Yes, they’ve been partners for eight years, but they’ve been best friends since the fourth grade. Evidence of their team building and leadership abilities is reflected in the phenomenal growth of their company, registering an astonishing 129 percent in 2010, reporting 42 consecutive months of profitability. For the third year in a row, NouvEON has been ranked on the prestigious Inc. 5000 list of fastest growing private companies. It has been ranked 16th in the Charlotte Business Journal’s FAST 50 Awards and 9th among its Top 25 largest technology-consulting firms. “We started as a local and regional consulting firm offering three broad services: strategic management solutions, e-solutions, and contract and placement solutions,” explains Eberle. “Eighty percent of our work was in and around information technology; only 20 percent in business.” Today that situation is reversed. Over the years, the firm has refined its business model, eventually dropping staff augmentation services altogether. And last August NouvEON acquired InCentric Solutions LLC, an integrated information technology solutions provider based in Raleigh. P&L Practices “About two years ago, we made a fundamental shift in our business,” says Eberle. “We used to be just one P&L for the overall enterprise. Now we’ve created practices that are individual P&Ls.” 16

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“It is no longer sufficient to just get ahead of the curve. The dynamic and global business culture of today implores companies to find the best ways to optimize business value, executing their developed strategies while integrating people, process, and technology effectiveness.” ~T.J. Eberle President and CEO

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organizational change

process excellence

!"#$"%&'

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"#"$%&"!'($%)*+$',( delivery management

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The firm operates five practices now; two that are industry-based (energy and utility and financial services) and national in scope, one that is technology-based (Technology Solutions), and two that are geographically-based, with offices in Charlotte and Raleigh, which are primarily leading the market with the firm’s core services. “Each practice has achieved very high growth,” attests Hobensack. NouvEON’s strategy in the old days was to go into a new city, and try to build a local consulting practice. Having tried that in Richmond, Va., and Jacksonville, Fla., and not succeeded, “We learned not to go into new geographic markets without some kind of client base,” says Eberle. “I’ve had to promise that I won’t open any more geographies unless the industry practices have

brought us there,” says Eberle, as Hobensack chuckles at the ‘risk-taker.’ In the present structure, the national practices that are leading from an industry perspective become the growth arms for new geographies; i.e., the firm follows its clients. “We’ve got clients and projects in Philadelphia, Baltimore, St. Louis, Washington D.C., Houston and Minneapolis,” shares Eberle. He points out that eight NouvEON professionals are currently working on a project in Philadelphia. “We’ve already established a presence there and are starting to build a local brand. With a couple more projects,” he says, “we may have enough people—along with some local hires— to open a Philadelphia office. We have to first have some level of revenue being generated and

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relationships there. Thus, our national, industrybased practices drive our new geographies.” It also works in reverse. NouvEON has also started to build clusters around certain industries in their geographic offices, including retail, health care, manufacturing, telecommunications and hi-tech. “We’re doing work with several retail clients here in Charlotte. We could develop a retail vertical that we could then take national. In this way, our geographical practices drive our next industries.”

Growth Strategy; the BVO Model Inspiration for NouvEON’s new growth structure came out of a study presented at a meeting of Vistage, an international CEO group of which $ Eberle is a member. The study revealed inherent

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roadblocks having to do with infrastructure at different growth milestones. More than 90 percent of corporations in the U.S. are generally able to grow to about 10 to 15 people and $1M in revenue, but have a struggle moving beyond that. Another cluster is around the $10M mark with the need to have 50 to 100 people at the next level of management. Smaller companies have difficulty building that management structure. A third cluster is around $50M and another is around the $200M level.

“You’ve got to have a vision and a plan and drivers to where you’re going from a strategy perspective, but you’ve also got to make sure that it’s executable. You can’t just blue-sky something without figuring out how to get from point A to point B.” ~T.J. Eberle President and CEO By year two, NouvEON had surpassed the $1M mark, according to Eberle. Between the $1M and $10M, the firm used what they had learned to make changes in their infrastructure in terms of people, process and technology—not only to get to the $10M level, but also to prepare for the next $50M. “I’m very happy to say that our strategy has worked very well for us,” says Eberle enthusiastically. “We’ve blown through the $10M ‘barrier’ and are flying towards the $50M mark.” Revenue is not the only measure of success. From the beginning, NouvEON has striven to achieve 100 percent “referenceability” with their clients, which include the major Carolinas’ companies in energy, banking, retail, manufacturing, and healthcare. Eberle says that over 90 percent of their clients are repeat customers. “We manage and deliver change for large Fortune 1000 companies where we are often using technology to enable that change,” says Eberle. “Our ultimate goal is to optimize business value.” In developing their Business Value Optimization (BVO) Model, the firm identified five primary dimensions that come into play, called knowledge domains. NouvEON services are broken down across these dimensions: organizational change, process excellence, strategy, systems integration, and delivery management. The BVO model seeks to strike a balance between strategy and execution. “You’ve got to have a vision and a plan and drivers to where you’re

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going from a strategy perspective, but you’ve also got to make sure that it’s executable. You can’t just blue-sky something without figuring out how to get from point A to point B,” says Eberle. Following the model, consultants also look at the relationships between people, process and technology. “In any kind of change effort focused to drive business value, you’re going to have people, process or technology implications. We haven’t found anybody to break Our BVO model yet,” says Eberle with a smile. “In today’s business environment, it is no longer sufficient to just get ahead of the curve,” Eberle continues adamantly. “The dynamic and global business culture of today implores companies to find the best ways to optimize business value, executing their developed strategies while integrating people, process, and technology effectiveness. It is critical for today’s companies to manage and deliver these changes across these critical domains.” “In order to break away from the pack,” Hobensack continues, “you have to provide value every day to every client you serve 100 percent of the time. This philosophy is core to our employees. If you don’t, you won’t be able to keep and grow within your clients. As everyone knows, it is much less costly to keep a client than to acquire a new one.”

In The Spotlight Numerous scenarios are catalysts for change management such as new leadership, regulations or technology; changes in the industry itself; new products or markets; and mergers and acquisitions among other change drivers. Work last year included completion of two major initiatives for a leading national utility. NouvEON helped the utility achieve compliance with new and complex government work hour regulations impacting nuclear power plants. It also deployed an improved software application to provide an online dashboard for real-time power generation. As part of this work, NouvEON received the prestigious Silver Anvil Award from the Public Relations Society of America (PRSA) for its campaign, Achieving Fatigue Rule Compliance Right On Time, in the internal communications category. The Silver Anvil recognizes outstanding achievement in strategic public relations planning and implementation. NouvEON, which is incorporated as an S corporation, is employee-owned through a value incentive plan that represents a shadow stock plan based on title, tenure and performance. The firm’s name, standing for a new era [in consulting], also reflects that it is an T.J. Eberle President and CEO Jeff Hobensack 6ICE 0RESIDENT &INANCE AND !DMINISTRATION NouvEON

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“Employee Owned Network.” The NouvEON environment is very entrepreneurial and its workers very experienced. Eighty-five percent of NouvEON’s consultants have a Big Four background and bring an average of eighteen years of experience. “We have depth of expertise in the service areas as well as industry expertise,” says Eberle. “We’re in what I call a ‘spotlight culture,’” says Eberle. “The light is shining on our employee owners because what they do makes a difference for us and our clients everyday.” Eberle explains that the spotlight is also used to see if someone is struggling with something and needs help. “We’re very team-focused.”

THE NEW NORMAL... Are you working harder? Are you working smarter? Is your company vital?

Has the way you see things, feel about things, and think about things changed in response to the New Normal? The New Normal for a lot of businesses means working harder, doing more with less. How is your company responding? If you have a good story to tell, we want to hear about it.

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E-mail us at jgalles@greatercharlottebiz.com with Potential Biz Profile in the Subject line and tell us why!

“In order to break away from the pack, you have to provide value every day to every client you serve 100 percent of the time. This philosophy is core to our employees. If you don’t, you won’t be able to keep and grow within your clients.” ~Jeff Hobensack Vice President, Finance and Administration Eberle likes to use that spotlight to highlight the quality of his leadership team and employee owners. He describes the firm’s employees as a network of qualified business professionals who are highly knowledgeable and respected in their fields of expertise. In addition to Eberle and Hobensack, the leadership team is made up of practice leaders. “We see that quality in the value we are creating for our clients and in turn, see that in our growth.” Forming an Alliance Eberle entered into management consulting right after earning his degree in industrial engineering from Virginia Tech. He joined Andersen Consulting and then moved to Charlotte 20 years ago with what became PricewaterhouseCoopers. After a stint in industry, he became the first employee of Ballantyne Consulting Group where he discovered his entrepreneurial spirit. In 2003, $ he felt the time was right to start his own

www.greatercharlottebiz.com

Global markets, co-dependent economies, technologies that truly change the way business is done all of these and more are offering challenges of a magnitude we haven t faced before. Business as usual won t get the job done.

2011 is the Year for Business-Savvy Innovators to Revive and Thrive! Join Us!

“INNOVATE” isn t just a buzz-word, it s a mandate! The 2011 season of BSI will focus on new ideas, new ways of doing business, and new technologies these will drive your future success.

February 22 | Economy-driven decisions offer new opportunities for those who are paying attention!

April 26 | The life cycle of an idea, from idea to market;

understand what it takes to encourage and embrace innovation!

June 28 | Techno-transactions offer new ways to bring buyers and sellers together; from QR codes to mobile phone apps, the way you connect is changing drastically!

August 23 | Joining forces; leverage is critical in this fast-changing world—partner for greater success and explore strategic partnership ideas!

October 25 | Risks, rules and regulations; find out how changes in technology, privacy issues, and on-going legislative changes impact your business and the risks you face! BSI is an organization designed for business owners. Members meet !ve times each year to address problems and opportunities speci!c to closely-held businesses. They receive insight, information and encouragement as they address their companies challenges.

For times, locations and membership information visit www.business-success-institute.com or call Denise Altman at 704-315-9090

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Front row (l to r): Shawn Shillington $IRECTOR %NERGY AND 5TILITIES T.J. Eberle, President and CEO; and Challen Bonar 0RACTICE -ANAGER #HARLOTTE Back row (l to r): Mark Milam $IRECTOR 4ECHNOLOGY 3OLUTIONS R.J. Fabian $IRECTOR 1UALITY 0ROCESSES AND 3OLUTIONS Jeff Hobensack 6ICE 0RESIDENT &INANCE AND !DMINISTRATION AND Hal Hawisher, 6ICE 0RESIDENT 3ALES AND 2EGIONAL /PERATIONS

business. Shortly thereafter, he made a call to Atlanta and his old friend Jeff. Eberle and Hobensack go back a long way to the days of American Legion baseball in West Chester, Pa., outside of Philadelphia. They remained close friends through the years while pursuing marriage, children and career opportunities. After graduating with a degree in mechanical engineering from Lehigh University, Jeff’s career began in sales for Westinghouse and then he switched to information technology in Atlanta, where he had been for five years when Eberle called.

“I want to be part of that,� Hobensack remembers replying to Eberle’s entreaty. Eberle laughs. “The first thing I asked was how much money he had.� Hobensack’s job has changed many times since the formation of the company. At first, finance and recruiting. Then, human resources and sales. He was responsible for the Raleigh office for a period of time, and now is heading up finance and administration. One might wonder why huge corporations find it necessary to hire consultants; surely they

NAVIGATING THE SEA OF TECHNOLOGY

have a powerhouse of talent already on board. Eberle explains: “The biggest use of management consulting comes about because there is certain expertise that they’re missing. They may know their processes very well and their industry’s processes very well, but they may not know, or be aware of, best practices in process excellence, in managing change, or in the newest technology.� Eberle goes on to say that most companies have an operations management approach versus a project management approach and that different skills are required. Another issue is capacity. Many firms prefer to keep their permanent head count around normal operations and use consulting expertise for capacity to cover peak periods such as when there is a major project underway. NouvEON is actively involved in community and social organizations such as the Arts and Science Council, United Way of Central Carolinas and NPower, a non-profit consulting firm serving non-profits. Eberle sits on its board. One Friday each month, employees are on hand at Crisis Assistance Ministries to pass out biscuits and orange juice to the folks waiting in line. “A healthy community from a social aspect creates a healthy business environment as well,� says Eberle. At the end of the day, NouvEON uses its Business Value Optimization model to drive business, stock prices, profits and bonuses. In the not-too-distant future, expect to see NouvEON involved in more industries and established in more geographic places. biz Zenda Douglas is a Charlotte-based freelance writer.

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NouvEON 6100 Fairview Rd., Ste. 560 Charlotte, N.C. 28210 Phone: 704-944-3155 Principals: 4HOMAS * 4 * %BERLE Jr., President and CEO; Jeffrey (OBENSACK 6ICE 0RESIDENT &INANCE AND !DMINISTRATION Additional Office: 2ALEIGH . # Established: 2003 Employees: 110+ Revenue: - Inc. 5000 fastest GROWING PRIVATE COMPANIES TH IN the Charlotte Business Journal’s &!34 !WARDS AND TH AMONG ITS 4OP LARGEST TECHNOLOGY CONSULTING lRMS Business: %MPLOYEE OWNED MANAGEMENT CONSULTING lRM WHICH SPECIALIZES IN DELIVERING HIGH VALUE SOLUTIONS TO MID MARKET AND Fortune 1000 companies. www.nouveon.com

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THE EMPLOYERS ASSOCIATION

4HE %MPLOYERS !SSOCIATION

Trusted HR Advice, Tools & Training

%

[employersbiz]

Legislative and Regulatory Highlights for Area Employers

WORKPLACE ROMANCES LEAD TO INCREASED RETALIATION CLAIMS AND CONCERNS

About 40% of employees have been involved in a workplace romance at some point in their careers, according to the Workplace Romance report by CareerJournal.com, The Wall Street Journal’s executive career site. The negative stigma that was once associated with workplace romance seems to be fading as only 4% of HR professionals and 14% of employees feel that romance shouldn’t be permitted at work. The survey found that more than 70% of organizations don’t have policies on workplace romance, and of those that do, the vast majority discourage dating rather than forbid it. Only 9% of organizations prohibit dating in the workplace entirely, especially between subordinates and supervisors. It seems HR professionals have shifted their concerns about problems stemming from workplace romance during the past few years: sexual harassment concerns dropped to 77% from 95% in a previous 2001 CareerJournal. com survey, while retaliation concerns jumped dramatically to 67% from 12%. As opposed to sexual harassment claims, retaliation claims are not one based on race, or sex, or disability, or even age. Rather, they allege that the claimant was treated differently for exercising rights under one or more of the various discrimination statutes. “Unlawful retaliation” claims are skyrocketing. According to EEOC data, retaliation claims have increased by approximately 100% during the period 1992-2006! Indeed, retaliation claims now comprise 30% of the total charges filed. (CCH)

What is a Retaliation Claim? Employees who believe they have been unlawfully discriminated against

(or harassed) can either use their company’s internal complaint system or file a charge with the EEOC. Recognizing that employees might be reluctant to file charges knowing their jobs could be at stake, Congress made “retaliation” by employers unlawful. The law of retaliation is fairly complex, but generally, employees have federal rights not to suffer adverse consequences merely for complaining about an unlawful employment practice (such as by filing a charge of discrimination) or participating in the complaint process (such as being a witness for another employee’s complaint). There are several factors at work behind the increase in retaliation claims. First, the recession and resultant surge in layoffs has led to the rise in discrimination charges. As more workers become unemployed, rather than easily changing jobs, they challenge their employers’ decisions and seek compensation and/or reinstatement. Second, employees and plaintiffs’ attorneys have begun to learn that retaliation claims are often easier to prove than the discrimination and harassment claims they allege gave rise to the retaliation in the first place. Third, the U.S. Supreme Court recently issued rulings expanding the reach of retaliation claims. Fourth, as a practical matter, it is often difficult for an employer to avoid negatively affecting a complaining employee’s situation, in the normal course of managing the workforce. Employees are laid off, disciplined, demoted, transferred or passed over for promotion regularly, and some of them are bound to “claim,” rightly or wrongly, they have been the subject of retaliation. (www.diversityinc.com)

#All New Employees Must Be Reported!

All employers are required to report newly hired and re-hired employees to the state within 20 days of the employee’s start date. No one is exempt from this law! State law requires this reporting because it helps with collection of child support. New hire information can also be used to detect and prevent fraudulent payment of unemployment compensation and workers’ compensation benefits. (North Carolina State Law, G.S. 110-129.2; Federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA))

Who must be reported? ! New employees: Employers must report all new employees who reside or work in the state— even if they work only one day and are terminated. ! Re-hires or re-called employees: Employers must report re-hires, or employees who return to work after being laid off, furloughed, granted a leave without pay, or terminated from employment. Employers must also report any employee who remains on the payroll during a break in service or gap in pay and then returns to work, including seasonal workers and substitute workers. ! Temporary employees: Temporary agencies are responsible for reporting any employee they hire to report for an assignment. Employees need to be reported only once; they do not need to be rereported each time they report to a new client. They do need to be reported as a rehire if the worker has a break in service or gap in wages from your company. Independent contractors (receiving Form1099s) do not have to be reported. Information that must be reported includes

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the employer’s FEIN, name and address and the employees name, address, SSN and date of hire. There are a variety of ways to report new hires: complete the online form at http://newhire-reporting.com/nc-newhire/default.aspx, transmit files electronically, or send information by fax or mail. If you use a payroll or accounting service, consider asking the service to report your new hires for you. If you have never reported new hires, begin by reporting any new employees you have hired within the last 180 days. Then, continue by reporting any new hires within 20 days of their hire date. For more information, call the New Hire Reporting Center toll-free at 1-888-514-4568 or visit their website at http://newhire-reporting.com/NC-Newhire/ default.aspx. (Source: FUBA, October 2010) Content provided The Employers Association, providing comprehensive human resources and training ser vices to a membership of over 860 companies in the greater Charlotte region. For more information, contact Laura Hampton at 704-522-8011 or visit www.employersassoc.com.

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photo: Wayne Morris

“Before March 23, 2010, we were on an unsustainable path.We were a train wreck, waiting to happen. Now we are on the brink of a historic opportunity. If we seize the moment and act collaboratively, we can lead the country in showing how we can improve health care.”

J. Bradley Wilson President and CEO Blue Cross and Blue Shield of North Carolina

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[bizPROlLE]

by casey jacobus

for the

BE TT ER BCBSNC Leads in Health Care Reform

fter decades of failed attempts and a year of bitter partisan debate, health care reform became a reality when President Obama signed legislation on March 23, 2010. The new law is designed to overhaul the nation’s health care system and guarantee insurance for tens of millions of Americans. Despite the continuing debate over its implications and method of application, the legislation marks an historic turning point for the health industry, which faces a crisis caused by soaring costs and increasing consumer dissatisfaction. “Before March 23rd, we were on an unsustainable path,� asserts Brad Wilson, president and CEO of Blue Cross and Blue Shield of North Carolina (BCBSNC). “We were a train wreck waiting to happen. Now we are on the brink of an historic opportunity. If we seize the moment and act collaboratively, we can lead the country in showing how we can improve health care.� Wilson is in a strategic position to provide leadership for health care reform. He heads North Carolina’s largest health insurance company. BCBSNC serves more than 3.7 million customers. Its network of health care providers includes 92 percent of the state’s medical doctors and 99 percent of its hospitals. BCBSNC has operated for 77 years and its health plans have earned the highest level of accreditation from the National Committee for Quality Assurance. Further, they boast an elite rank nationally for meeting or exceeding NCQA’s rigorous requirements for consumer protection and quality control. “We are a major player in health care reform,� states Wilson. “We’re fully engaged in trying to make it work.� Staying on Course Wilson brings to BCBSNC extensive business experience, public policy expertise and a strong record of community involvement. He is a native of Watauga County and was the first person in his family to attend college. He holds a B.A. from Appalachian State University, a Juris Doctor from the Wake Forest University School of Law, and a Master of Arts from Duke University. His career and public service focus have included the practice of law as well as work on government and legislative issues, higher education, regulatory affairs and business. Wilson joined BCBSNC in 1996, serving in a variety of senior leadership roles, including executive vice president, chief operating officer, general counsel and corporate secretary, before becoming president in 2010. Wilson’s commitment to serving North Carolina and its people has earned him the Order of the Long Leaf $ Pine, the highest civilian honor a Tar Heel governor can bestow.

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OVEMBER S MID TERM ELECTIONS HAVE RAISED NEW CONCERNS ABOUT THE FATE OF HEALTH CARE REFORM $ESPITE THE SUCCESS OF THE 2EPUBLICANS WHO MADE OPPOSI tion to health care a central campaign theme, most OBSERVERS AGREE THAT DIRECT REPEAL OF THE LEGISLATION IS UNLIKELY SINCE $EMOCRATS MAINTAIN CONTROL OF THE 5 3 3ENATE AND 0RESIDENT /BAMA RETAINS HIS VETO POWERS (OWEVER THE 2EPUBLICAN GAINS MAY AFFECT HOW THE health care legislation is implemented. /NE OF THE LEGISLATION S PROVISIONS THAT HAS COME UNDER HEAVIEST lRE IS THE INDIVIDUAL MANDATE WHICH REQUIRES MOST !MERICANS TO BUY HEALTH INSURANCE BY 2014 or pay a penalty for not buying it. Wilson characterizes this as the law’s most crucial element. h4HE ONLY WAY THE REFORM WORKS IS TO HAVE A LARGE pool of insurees,� says Wilson. “It is Economics 101: %VERYONE HAS TO HAVE IT 9OU APPLY FOR INSURANCE YOU GET IT 4HERE IS NO LIFETIME MAX NO PRE EXISTING CONDI TIONS )F THE INDIVIDUAL MANDATE ISN T STRONG ENOUGH IT WON T WORK v

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Despite taking the helm of the state’s largest health insurance company in the midst of a troubled economy and the uncertainty surrounding health reform, Wilson has kept BCBSNC on course. The company has continued to enjoy stability in its customer base and financial performance. The Triangle-based health insurer is by far the largest in the state, taking in nearly 70 percent of all dollars spent on health insurance premiums in North Carolina in 2008. United Health Care, the nation’s largest health insurer, is a distant second with 12 percent and WellPath Select is third with a 3.7 percent. BCBSNC is the 28th largest health insurer in the nation, according to the National Association of Insurance Commissioners. BCBSNC’s numbers for total premiums do not include the $2.2 billion State Employee Health Plan. BCBSNC administers the plan but does not collect premiums from the state, which is self-insured. In 2009, BCBSNC had a profit margin of 2.1 percent, or just 2.1 cents for each dollar of revenue. That is below the company’s target range of 3.5 to 4.5 percent. The company’s consolidated net income in 2009 was $107.3 million with total revenue at $5.2 billion. Profitability was affected by higher medical costs and slower membership growth because of the growing level of unemployment. In 2010, BCBSNC was on track to meet its target net income ratio of 3.5 percent. In addition, the company attempts to maintain a 3- to 6-month claims reserve. It currently holds a 4-month cushion. “We have enjoyed relatively good growth,” says Wilson. “During this down economy, when many insurers have lost customers, Blue Cross is holding its own. At the same time, we’re doing everything we can to become more efficient by lowering administrative costs and increasing productivity.” Streamlining for Better Health Currently, 13 cents of every premium dollar goes to administrative costs, while 87 cents pays medical costs. BCBSNC plans to reduce operating costs by 20 percent by 2014. A recent decision to outsource some claims data entry work should result in an annual savings of approximately $2 million, eliminating about 90 BCBSNC jobs. In addition, an early retirement program initiated last fall shaved about 400 positions. Since health care legislation’s passage, BCBSNC has instituted other changes to both improve the quality of its service and lower prices. It recently announced a new product with comparatively low premiums and streamlined benefits, called Blue Advantage Saver. There are three plan designs to choose from and they all cover preventive care at 100 percent with no cost sharing. BCBSNC is also employing technology to

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“During this down economy, when many insurers have lost customers, Blue Cross is holding its own. At the same time, we’re doing everything we can to become more efficient by lowering administrative costs and increasing productivity.” ~J. Bradley Wilson President and CEO

both increase efficiency and reduce costs. Members who have an iPod or iPhone can take advantage of a new iPhone application that helps compare drug costs, locate urgent care centers and reach customer service representatives. Members can now pay their premiums with automatic bank draft transactions. BCBSNC is also encouraging physicians and pharmacies to practice electronic prescribing. Since it began its ePrescribe program in 2006, more than 2,000 N.C. doctors and 87 percent of the state’s pharmacies have adopted electronic prescribing. The program allows physicians instant access to a patient’s medical and drug history so they can avoid drug interactions. They can also view the patient’s health plan so they can discuss costs of drug choices. Wooing New Customers BCBSNC’s major challenge is to expand service quality while lowering prices and expanding coverage. One opportunity for growth is in the small business market. Companies in this sector play a crucial role in North Carolina’s economy, providing nearly 50 percent of all private sector employment and contributing half of the state’s private non-farm gross product. U.S. Department of Commerce statistics show small businesses make up 98 percent of North Carolina’s total number of firms. They account for 49 percent of paid employees and 43 percent of total annual payroll. What’s more, small businesses are heavily impacted by the health care reform legislation. Starting this year, businesses that employ fewer than 25 workers, pay average annual wages of less than $50,000, and shoulder most of their employees’ health coverage can claim a tax credit worth up to 35 percent of health expenses. That will increase to 50 percent in 2014. The Congressional Budget Office estimates the tax credit will save small businesses $40 billion by 2014. “Small business owners are doing the math,” says Wilson. “They want us to help them figure this out. They know a healthy work force is a happy work force.”

“Health care is a defining issue of our time. BCBSNC is an innovator in finding ways to better serve the most people with the best options for living healthy and productive lives.” ~Ellison Clary Director of Charlotte Community Relations

Recognizing that affordability is a key deterrent for small business employers when they consider the prospect of offering health insurance to their employees, BCBSNC is running ads about the new tax credits and recently placed an interactive calculator on its website to show small business owners the benefits of the cuts. Employers can also receive updates related to health care reform and small businesses. BCBSNC hopes to win new customers among business owners who previously didn’t provide health coverage as well as to help educate and inform business owners about new regulations. Since the small business campaign began last June, there have been 6,500 total visits to the website, resulting in 260 requests for quotes. “Small businesses are heavily impacted by health care reform,” says Wilson. “I hope all North Carolina small business owners will take advantage of these resources to ensure they receive the maximum benefits from this law.”

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Collaboration for Better Success BCBSNC started the ePrescribe program in partnership with Community Care of North Carolina and North Carolina Medicare to boost prescription accuracy and increase patient safety. It is just one of many programs, including Bridges to Excellence and Blue Quality Physician Program, where BCBSNC has worked in collaboration with physicians, hospitals and other health care providers. Wilson believes that collaboration is essential to solving health industry problems. “All of us get it,” says Wilson. “We have got to change. We can’t keep replicating the same level of behavior. We are committed to talking collaboration.” BCBSNC already partners with a number of organizations working toward a healthier North Carolina. In December, it helped The National Association of Free Clinics bring a one-day free medical clinic to Charlotte. More than 100 BCBSNC employees volunteered at the event. BCBSNC collaborated with the Food Bank of Central and Eastern North Carolina to expand the Kids Cafe program into 34 eastern North Carolina counties. Kids Cafe is an afterschool program that offers tutoring, nutrition, mentoring and nutritious meals to children at $ risk of hunger.

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“Small businesses are heavily impacted by health care reform. I hope all North Carolina small business owners will take advantage of these resources to ensure they receive the maximum benefits from this law.� ~J. Bradley Wilson President and CEO

In 2009, BCBSNC and its employees contributed $925,000 to state United Way drives, much of which was designated for the Community Care Fund. BCBSNC also donated $165,000 to the United Way’s Teaming for Technology Program,

which provides home computers to low-income families with children and individuals with disabilities in North Carolina. The company was honored as the United Way of the Greater Triangle’s 2010 Community Technology Partner of Excellence.

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BCBSNC instituted the BCBSNC Foundation in 2000. In its 10-year history, the Foundation has invested more than $67 million to improving the health and well-being of North Carolinians through more than 450 grants. The Foundation has committed in excess of $22 million to support free medical clinics, helping the NAFC network grow from 59 operations seven years ago to 79 today. It is the largest free clinic network in the country. In addition to forging new collaborations, BCBSNC recently appointed business professional Ellison Clary as director of Charlotte community relations, a new position designed to raise the company’s profile through community involvement and to strengthen its presence in the largest market in the state. Clary, who previously operated Ellison Clary Comprehensive Public Relations, said he was delighted to be associated with BCBSNC and is happy to know BCBSNC is paying more attention to the Charlotte community. “Health care is a defining issue of our time,� says Clary. “BCBSNC is an innovator in finding ways to better serve the most people with the best options for living healthy and productive lives.� biz Casey Jacobus is a Charlotte-based freelance writer.

Blue Cross and Blue Shield of North Carolina Corporate Headquarters 5901 Chapel Hill Road Durham, N.C. 27707 Phone: 919-765-4600 Principal: * "RADLEY "RAD 7ILSON President and CEO Founded: Operations: $URHAM . # AND 7INSTON 3ALEM . # Employees: Business: .OT FOR PROlT FULLY TAXED COMPANY LARGEST HEALTH INSURER IN THE STATE SERVING more than 3.7 million customers. Recognition: (IGHEST LEVEL OF ACCREDITATION FROM THE NATIONAL #OMMITTEE FOR 1UALITY !SSURANCE FOR ITS (-/ 0OINT OF 3ERVICE AND 00/ HEALTH PLANS !!20 "EST #OMPANIES FOR 7ORKERS /VER $IVERSITY Journal: .OTEWORTHY #OMPANIES .ATIONAL !SSOCIATION FOR &EMALE %XECUTIVES 4OP #OMPANIES FOR %XECUTIVE 7OMEN .ATIONAL "USINESS 'ROUP ON (EALTH "EST %MPLOYERS FOR (EALTHY ,IFESTYLES 'OLD !WARD 0HARMACY "ENElT -ANAGEMENT )NSTITUTE 2X "ENElT )NNOVATION !WARD www.bcbsnc.com

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2011 SPEAKER LINEUP Join us at Hood Hargett Breakfast Club for Charlotte s premier networking experience NEXT MEETING Carmel Country Club by invitation only

FEB

11 2011

The Hood Hargett Breakfast Club

is a ‘category exclusive’ business development organization that develops and hosts some 36 events throughout the year for its members and guests. The goal of these events: to provide success-minded business owners with first-class venues to entertain clients and prospects.

“Common Ground� Bob Beckel & Cal Thomas of USA Today’s Common Ground Column

Mar. 11, 2011

Erik Qualman Author of Socialnomics andSocial Media and Technology Expert

Apr. 8, 2011

WELCOME NEW MEMBERS CPI Security Compass Group Conrad Trosch & Kemmy, P.A. Griffin Brothers Companies

J. Bradley (Brad) Wilson President and CEO Blue Cross and Blue Shield of North Carolina

"

Wes Moore Youth Advocate and Author of The Other Wes Moore

May 13, 2011

Tobin Smith Fox Business Analyst and Co-host of FNCs “Bulls and Bears�

Oct. 14, 2011

Jerry Richardson

Matt Eversmann

Owner Carolina Panthers

Hero of Black Hawk Down and the Battle of Mogadishu

Sept. 9, 2011

Nov. 11, 2011

“Every year since we’ve been a member of the Hood Hargett Breakfast Club, we’ve been able to recoup our investment—not only through new business that we’ve developed, but also existing business that continues to renew. What Hood Hargett Breakfast Club brings to the table are decision-makers, and those are the individuals that we are trying to get in touch with.� ~Lee Summey Business Wise, Inc.

“We’ve been a member of Hood Hargett Breakfast Club for nearly 10 years now and we especially appreciate the great speakers and the opportunity to entertain business decision-makers at quality events.� ~John P. Galles Greater Charlotte Biz

Accepting New Members (( "** *3!"- / 4 &"** %++!% -$"// +) !222 %++!% -$"// -" '# ./ C O N S T R U C T I VE C A T A LY S T FO R C RE A T I VE C O N S C I O U S N E S S FE B R U A R(0 Y +)

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[bizprolLE]

by heather head

Small Firm,

BIG DEFENSE for Employers

VAN HOY, REUTLINGER, ADAMS & DUNN = EMPLOYMENT LAW THAT WORKS

P

hilip Van Hoy and his wife spent the summer of 1983 drawing charts filled with plusses and minuses. They were about to make a decision that would change the course of their lives and define Van Hoy’s entire career. By Labor Day, the plusses column had grown long enough that the choice was clear. Van Hoy gave notice to his employer, and struck out alone. The decision had been coming for a long time. A former U.S. Army soldier, Van Hoy spent the early part of his career as an in-house attorney for Duke Energy. The experience was valuable, but he knew he could do better financially in private practice. So when a private law firm out of Hartford approached him in 1979 to help open an office in Charlotte, he seized the opportunity. The company had sent a partner from Boston to join him. The other lawyer was senior within the firm, but “he was shy,” says Van Hoy. “So I became the business developer.” Before long, however, Van Hoy became frustrated that, although he was bringing in most of the firm’s Charlotte business, the other lawyer was receiving most of the compensation. He approached the firm, and asked them to compensate him at least on a level with the other lawyer, but they weren’t willing to do that. And that is when he and his wife began drawing up their charts. Because he had developed most of the business for the Hartford firm, Van Hoy took most of his clientele with him into his new practice. Nevertheless, he recalls, “the next two or three years were filled with terror.” Like most new business owners, he found himself constantly juggling the need to develop new business with the need to care for existing clients, and finding that there was never enough time for both. “Eventually,” he recalls, “I figured that logically, if I had more to do than I could manage, I shouldn’t worry about where the next work was coming from.” The logic worked for him, and he reports that the company never saw a bad year. “Through client referrals and reputationbuilding, the book of business has gotten steadily bigger and bigger.” Discovering Partnership In the early years, Van Hoy shared an office and expenses with another person, but it was six years before Van Hoy had a partner in the firm. He missed the collegial atmosphere of a larger firm. But he did have some friends to talk about issues with and bounce ideas off on. One of them was Craig Reutlinger, general counsel at what was then called the Charlotte$ Mecklenburg Hospital Authority (now the Carolinas HealthCare System).

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VAN HOY, REUTLINGER, ADAMS & DUNN

DOES

NOT TRY TO BE ALL THINGS TO ALL PEOPLE.

BY

MAINTAINING A TIGHT FOCUS, WE ARE ABLE TO KEEP UP WITH THE LATEST DEVELOPMENTS IN EMPLOYMENT AND HEALTH CARE LAW.

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Like Van Hoy, Reutlinger had a military background, having served in the Air Force as a judge advocate and medical legal consultant. They met through Van Hoy’s father who was a surgeon at the Hospital Authority, found they had a lot of values and interests in common, and became good friends. By 1989, Reutlinger had grown tired of working for a single client, and wanted the greater variety that a smaller practice would afford. He also liked the idea of fewer administrative meetings and the bureaucratic headaches that accompany work in a large organization. So, shortly after he left the Hospital Authority, he and Van Hoy joined up. His background in health care law, including health care employment issues, was a strong complement to Van Hoy’s emphasis on employment law, and although Reutlinger had to build his own client base from the ground up, he never regretted the step. Over the next seven years, the pair added another partner, Paul Taylor, who later moved to Asheville where he practices law and enjoys the mountain lifestyle. During those seven years, the trio steadily grew the business and in 1996, they hired their first summer intern, Stephen Dunn. Dunn also had a military background as the son of an Air Force officer. But at the time that he accepted the summer internship, he says, “I was ambivalent about law as a career and I wasn’t even sure I would finish law school.” He also loved art, beach music, theater, and photography. Still, the internship seemed like a good idea, so he took it. “Working with Phil, Craig, and Paul showed me it was possible to practice law at the highest level of competence and professionalism, while maintaining a healthy work-life balance, and having fun,” he says. For their part, the partners in the firm knew they needed Dunn. “He had a cosmopolitan view of the world,” says Van Hoy. “And he had the polish to deal with older people, plus style, intellect for the business, and he is a great wordsmith.” Dunn joined the firm as an associate as soon as he graduated in 1998, and became a partner in the firm four years later in 2002. In the meantime, Van Hoy had met Bryan Adams while serving as opposing counsel in a discrimination case. While defending his client against Adams’s client, Van Hoy got to see him in action, saying, “He made a very good impression.” Adams at the time was a partner in a firm handling a wide variety of business litigation including employment litigation. He had, however, always wanted to narrow his focus to defense-side employment law. His father had owned a mid-sized printing company when he was growing up in Charlotte,

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!"!

Q;-8)(67/-,3(*'(R0,(S*)9(T-+37/,C-89(F.0:1(U(V+,,(8-6-/;-1(35-( '+77(033-,3/*,(*'(0(,0:-.(<083,-8=((W-(:0@-(0(<*/,3(*'(<8*:<37)( 8-3+8,/,C(<5*,-(60771(0,.(-:0/719(0,.(4-(C/;-(*+8(67/-,31( /,'*8:03/*,(35-)(60,(+1-=((X+8(033*8,-)1(08-(*'3-,(027-(3*(0,14-8( 6*:<7-D(-:<7*):-,3(J+-13/*,1(/,(0(15*83(<5*,-(6077=((X+8(0.;/6-( /1(30/7*8-.(3*(0;*/.(7-C07(./1<+3-1(45-8-;-8(<*11/27-9(0,.(3*(-,1+8-( *+8(67/-,31(08-(4-77(<*1/3/*,-.(45-,(7/3/C03/*,(/1(,-6-1108)=(( where he says he “learned how excessive government regulation can distract a business owner from running the business, and can complicate necessary personnel decisions.” He was eager to help other businesses protect their interests. So when Taylor moved to Asheville in 2000, and word went around that Van Hoy and Reutlinger were looking for another partner, Adams stepped up. “I knew the firm had a reputation for being an outstanding labor and employment boutique firm, and an aggressive advocate for corporate clients,” remembers Adams, “and I wanted to be a part of that.” The firm’s focus was a perfect fit, and the firm had more than enough work to share. “I asked Phil if the firm had enough work to keep me busy,” chuckles Adams, “and he burst out laughing. I knew that was a good sign.” The four partners have remained together ever since, operating with only two other employees, legal assistants Carolyn Brooks and Sara Gillenwater. Boutique Counsel All six members of the Van Hoy, Reutlinger, Adams & Dunn team prefer the small size of their firm over larger environments in which they have worked. Both the small size and the tightness of the firm’s focus provide multiple benefits to clients as well. Though elegant and well-appointed, the company’s 100-year-old plantation-style building on East Boulevard boasts significantly lower overhead compared to the more ostentatious digs of uptown firms. Perhaps more importantly, the smaller staff size eliminates the need for frequent or lengthy staff meetings, and makes it easier to keep track of potential conflicts, reducing (l to r) Philip M.Van Hoy, G. Bryan Adams, Stephen J. Dunn, Craig A. Reutlinger; Partners Van Hoy, Reutlinger, Adams & Dunn, PLLC

the amount of time and resources devoted to research before a client can even be accepted into the practice. As a result, Van Hoy, Reutlinger, Adams & Dunn is able to offer clients a highly effective, boutique level of service at a cost well below that of many competing firms. Clients know that when they hire this firm, they will receive the full attention of a named partner. Additionally, because the firm focuses exclusively on employment and healthcare law, they offer a level of expertise unparalleled by larger companies whose employment law department may not be a core competency. Other lawyers are comfortable referring employment and health care matters to the firm, since the firm will only handle what is referred, due to the firm’s focused, specific areas of practice.

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“At Van Hoy, Reutlinger, Adams & Dunn, the emphasis is on minimizing the intrusion of laws and government agencies on to the decisionmaking of our clients in regard to employment matters.”

?

~Philip M. Van Hoy Partner

Big Representation Employment law constitutes an array of services, from helping develop contracts and employee manuals, to dispute resolution and litigation. At Van Hoy, Reutlinger, Adams & Dunn, says Van Hoy, their emphasis is on “minimizing the intrusion of laws and government agencies on to the decision-making of our clients in regard to employment matters.” Because of that emphasis, a large portion of their business involves consultative services. Clients learn to trust the firm and they bring questions and ideas to the firm before embarking on new employment endeavors. Van Hoy, Reutlinger, Adams & Dunn consult on everything from whether a non-compete agreement is enforce$ able to how best to lay off employees without

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704-540-2255

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running into legal trouble. “About 40 to 50 percent of our work,� says Van Hoy, “is defending discrimination cases, where someone alleges that they were treated unfairly due to race, sex, national origin, religion, disability, or age.� This work is one reason the firm’s business model is virtually recession-proof. He explains that during a recession, people are far more likely to fight lay-offs with discrimination cases. The defending companies have no choice but to hire counsel, and since Van Hoy, Reutlinger, Adams & Dunn is lower cost than many larger firms, they are the natural choice. Another significant portion of the firm’s business

involves non-compete agreements—writing, enforcing, and sometimes trying to break them. Because there is a business on both sides of the case, this is one area of law where they are frequently called in on the plaintiff’s behalf. They also handle wage and hour cases, OSHA work, and many aspects of health care law. For instance, Reutlinger helps medical practices organize themselves, write employment agreements, work through the legal ramifications of the dissolution of a practice, and deal with professional violations cases. Testifying for the Future The field of employment law changes constantly, as do all fields of law, with new regulations, rulings, and laws frequently coming into (and out of) effect. But the business of employment law remains steady, even during recessions like the current one. “I’ve been practicing long enough to have been through several recessions,� says Van Hoy, “And our business has always remained steady,

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though the mix of business changes.� All four partners agree that in this respect, the near future is unlikely to bring very much change to their firm. Likewise, they don’t anticipate adding new attorneys nor does anyone expect to move or retire. But they do expect some trends in employment law to gradually change. Based on current trends, Dunn expects noncompete contracts, confidentiality agreements, and protecting trade secrets to become a larger element of employment law. He also expects to grow the mediation end of his practice. Adams expects the entire area of practice to continue becoming increasingly complex due to increased government regulations and radical expansion of existing employment laws such as the Americans with Disabilities Act and the Family and Medical Leave Act. Reutlinger looks for trends of consolidation among law firms to continue in the near future, with an eventual backlash. “The larger and larger firms get, the more risk is involved and ultimately, you get a meltdown.� Eventually, he expects more and more professionals to move into boutique firms like theirs, with tightly focused areas of expertise. Van Hoy concurs, adding that major corporations that have “reflexively� hired big law firms in the past are considering other options as a way of saving cost and obtaining greater expertise. Because the Van Hoy, Reutlinger, Adams & Dunn business model is based on focused expertise, high-level client care and attention, and sustainable growth, all the partners agree that the future is unlikely to hold major surprises for them. They strive in every client relationship to provide a level of service that ensures that the future holds just as few employment surprises for their clients as well. biz Heather Head is a Charlotte-based freelance writer.

Van Hoy, Reutlinger, Adams & Dunn, PLLC , A  & D 737 East Boulevard V  H , R Charlotte, N.C. 28203 Phone: Principals: 0HILIP - 6AN (OY #RAIG ! 2EUTLINGER ' "RYAN !DAMS 3TEPHEN * $UNN Founded: Employees: INCLUDING THE FOUR PRINCIPALS Business: ,AW lRM REPRESENTING EMPLOY ERS EXECUTIVES AND HEALTH CARE PROVIDERS IN employment law and health care law. www.vradlaw.com AN

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Michelle Fish CEO Integra Staffing, LLC

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by carol gifford

[bizPROlLE]

(((3(4.,5 In Water !"#$%&'()#'*+"%(!,( )-.//."0(12,#&$'/

or Michelle Fish, CEO of Integra Staffing and Bankston Partners, and founder of the Diversity Forum, “My work is my family.” Fish and husband, Robert Fish, who is president of the company, have involved their children, Kylie Makenna, 8, and Samuel Bankston, 4, in the company since it was founded in 2002. Fish believes that her family and workplace can function together—and she exposes her children to her work as much as she can. They visit the office, go to work-related social functions, and travel with her, when possible. Named one of the “Best Places to Work” in Charlotte for two years in a row, Integra offers employees a place where they don’t have to separate their family from the workplace. “People who have to compartmentalize their lives are not having much fun,” she says. “I believe in a fun, inclusive work environment. If it’s not fun, I don’t want to do it. “Instead of compartmentalizing, I have a very supportive infrastructure. You have to decide what your time is worth. If it’s not an activity you have expertise in or want to spend time on, then hire someone else to do it.”

“Michelle is a strong, intelligent businesswoman who has some powerful connections in Charlotte,” says Joe Machicote, vice president of organizational development at Snyder’s-Lance, Inc. “She’s got an extremely big heart and she gets the most out of her people and her connections.” Integra Staffing’s logo was designed around Fish, her husband, and daughter. Guests at a recent award dinner may have been a bit surprised to find they were seated at a table sponsored and hosted by Kylie Fish, 8. Another time, Fish took her daughter to an awards ceremony. Her daughter pulled on Fish’s arm to whisper, “Mommy, are you getting an award?” She answered no,

C O N S T R U C T I VE C A T A LY S T FO R C RE A T I VE C O N S C I O U S N E S S

and her daughter asked, “Then why are we here?” It was a teachable moment, says Fish. “My clients have embraced it. They ask me if she’s coming along,” says Fish, who has noticed other people are bringing their children along to after-hour work events. “I understand there are adult events but I try to bring Kylie along because I want her to experience what I do in work and in the community. A Fish in Water Fish started Integra eight years ago, when her daughter was just six months old. $

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“She sat in her carrier on plenty of conference tables from here to Lake Norman while we looked around for office space,” says Fish. Then, when she added a specialized recruiting and consulting firm in 2008, she named it Bankston Partners, after her son. Fish’s mantra is, “First understand the culture of a company, because most companies hire for skills and end up firing when there is not a good culture fit.” Her culture is to “build new things,” or to be an entrepreneur. Fish’s latest progenies are Integra, Bankston, and the Diversity Forum, established in 2009. “I want to build it, hire people smarter than me, and then let them build it,” explains Fish. “It’s important to know your strengths and weaknesses—and to be able to recognize others’ unique abilities. Empowering others is the number one thing you can do to build a successful, thriving organization.” Fish first worked at a staffing company where she rose to regional vice president of sales and operations, responsible for 14 offices, nurturing her Carolinas’ division into the largest and most profitable region. Then she started her own. “I worked my way up the ladder and learned many right ways to do things,” says Fish, “but I also recognized there were other ways of doing things.” It was a valuable insight. Today, Integra has grown from four to more than 400 employees in the Charlotte metro area, and is the third largest contingency executive search firm and second largest staffing agency in Charlotte. It’s also the second largest femaleowned company in Charlotte. “I met Michelle and she represented the company very well,” says Doug Meyer-Cuno, president of Carolina Ingredients, a seasoning blend manufacturer with a facility in Rock Hill. “We’ve used an executive recruiter from Bankston Partners to help us find a controller, a quality control manager and a plant manager. The plant manager search was a process where we were looking for a candidate within our industry and so it required a lot of talent research throughout the U.S. Integra Staffing was able to find the right candidate and the process from start to relocation was complete in two months. That’s a win-win situation for us since time is a precious commodity.” Swimmin’ Upstream Integra has a solid record of profitability in the $70 billion staffing and executive search industry, experiencing only one negative growth year in 2009, when other companies were also feeling the effects of the recession. In 2010, Integra and Bankston combined, achieving 27

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percent growth over the previous year. The privately-owned company has no debt, has been named to the Inc. 5000 Fastest-Growing Company list in 2008 and 2009, and is often named as a fast-growing company in state and regional rankings. Integra and Bankston currently have candidates placed in over 30 states. Integra has more than 2,000 successful placements. It helps Fortune 500 companies locate qualified candidates to fill jobs at all levels. Clients include major banks and health care systems across the country. In fact, Integra has a separate division for clinical and clerical health care, Integra Rx Solutions, to better meet the needs of health care clients. Integra Rx Solutions has experienced tremendous growth recently with the addition of new contracts and additional recruiters. Bankston Partners, the arm that specializes in the accounting and finance, information technology, project management and sales and marketing fields, opened in 2008. Fish’s companies have thrived, she believes, because of her emphasis on getting outside the bubble and becoming immersed in the client’s workplace culture. “We are ‘entangled’ with our clients. We know and understand their culture as well as they do. They do not have to continue to train us on the intangibles that it takes to make a specific person successful in their company.” “When you meet the people at Integra, they’re different,” says Dwayne Black, senior vice president of operations for a company with a manufacturing site in Charlotte. “They actually listen to what we’re looking for and they’ve had the ability to recruit some really good talent for us.” Black has used Bankston to hire engineers, upper level managers, product managers and

HW-(08-(Y/,3-834/,-.L(4/35( *+8(67/-,31=(W-(@,*4(0,.( +,.-8130,.(35-/8(6+73+8-(01( 4-77(01(35-)(.*=(>5-)(.*(,*3( 50;-(3*(6*,3/,+-(3*(380/,(+1( *,(35-(/,30,C/27-1(3503(/3(30@-1( -0&!"4*&"&26*7$'7&6*+20(& 1+66-11'+7(/,(35-/8(6*:<0,)=I ~Michelle Fish CEO

supply chain professionals. He says he “doesn’t have the time to spend on the phone with 20 different candidates” and that “Integra weeds out the deadwood.” “I have pretty high expectations and it’s usually a challenge for people to meet them, but the people I’ve worked with at Bankston are really dedicated to what they do,” he continues. “They understand the needs of the customer and the marketplace. It’s a personal touch and feel that is different from other recruiting companies where it’s all business,” says Black. Outside the Bubble The world is a global marketplace and Fish believes it is essential to understand not only her international client’s needs but to continue to further her personal education by extensive travel and immersion into other cultures. This $

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5. Magazine readership in the 18 to 34 segment is growing. (MRI) 6. Since Facebook was founded, magazines gained more than one million young adult readers. (MRI) 7. The average reader spends 43 minutes reading each issue. (MRI) 8. Magazines are the No. 1 medium of engagement—across all dimensions measured. Simmons’ Multi-Media Engagement Study find magazines continue to score significantly higher than TV or the Internet in ad receptivity and all of the other engagement dimensions, including “trustworthy” and “inspirational.” (Simmons Multi-Media Engagement Study)

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9. Magazines and magazine ads garner the most attention: studies show that when consumers read magazines they are much less likely to engage with other media or to take part in non-media activities compared to the users of TV, radio or the Internet. (BIGresearch Simultaneous Media Usage Study) 10. Magazines outperform other media in driving positive shifts in purchase consideration/intent. (Dynamic Logic) 11. Magazines rank No. 1 at influencing consumers to start a search online – higher than newer media options. (BIGresearch Simultaneous Media Usage Study) The “Magazines, The Power of Print” campaign was created by Y&R NY in conjunction with Condé Nast, Hearst Magazines, Meredith Corporation, Time Inc. and Wenner Media, with the full support of the Magazine Publishers of America (MPA).

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year alone her travels outside the U.S. included Mumbai, Goa, Hong Kong and London. She recalls the massive call centers in Mumbai, where she said the city opens up around 11 p.m. for call center workers to shop, go to the gym or visit the vendors selling food and clothing on the streets. “I watched them at work in the call centers. Their English was as good as mine. Once they become familiar with the areas (Southern versus Northern states), you could hear the different dialects they picked up,� says Fish. Traveling with her family is another way to expand her knowledge base. Fish takes her daughter Kylie on a mother-daughter trip each spring. They pick out the location together by looking at maps or a globe. So far, they’ve visited Disney World, New York City, Las Vegas and New Orleans. “It’s harder to think outside the bubble if you never leave the bubble,� Fish says. In 2009, Fish moved one step further outside of the workplace. A group of MBA students from Montreat College had studied her company to look at diversity issues, writing a thesis on how well diversity is acknowledged and accepted in recruiting and consulting firms. They were investigating the fact that Fortune companies had a better track record retaining diverse candidates as opposed to mid-sized companies. “We realized the need to offer diversity and inclusion training to all mid-sized companies that we served, and that this training could benefit more than just our clients,� says Fish.� Responding to this need led Fish to the startup of the Diversity Forum, a non-profit organization providing Fortune companies and trained professionals the platform to educate business leaders on how diversity and inclusion can spur business innovation and create sustainable growth opportunities. “The Diversity Forum,� explains Machicote, who is chair of the Diversity Forum advisors, “brings together the top minds in business and the community to educate the public about specific issues and talk about best practices.� The advisory board he chairs meets quarterly to discuss the hot topics in the community and consider forum topics for the public events held during the year. He says there are a number of well-respected diversity organizations in Charlotte, but there’s always room for more

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allow all willing participants to leave the world a better place.�

H&(0:(<011/*,03-(02*+3( ./;-81/3)(0,.(/,67+1/*,( 0,.(/3L1(1*:-35/,C(3503( 501(1</77-.(*;-8(/,3*(:)( 6*::+,/3)(0,.(:)('0:/7)= K*49(&(8-07/Z-(4503(0(7-C06)( /1[/3L1(02*+3(68-03/,C(0( ;-5/67-(3503(60,(077*4(077( 4/77/,C(<083/6/<0,31(3*(7-0;-( 35-(4*87.(0(2-33-8(<706-=I ~Michelle Fish CEO

discussion of the issues. “Charlotte’s a great town but there are still a lot of challenges and opportunities around diversity,â€? Machicote says. “People are nice and very polite about the issues, but may not want to tackle issues upfront. We lag behind other cities in this area.â€? “I want the Diversity Forum to be the organization that starts the conversations about these sensitive issues that will flow back to the workplace and in the community,â€? says Fish. “I am passionate about diversity and inclusion and it’s something that has spilled over into my community and my family,â€? says Fish. “Now, I realize what a legacy is‌it’s about creating a vehicle that can

Transparency Growing her company and new ventures is a straightforward proposition for Fish. “If you want to know something, ask me,� she says. “You can get bogged down with your own thoughts, with worrying about your competition, and you can drive yourself crazy. I’m not like that—what you see is what you get. I’m focused on our family of companies, our clients and our community!� Fish says it’s a new, different world today and competition is everywhere. Companies need to be open to opportunities and to collaboration. “Open up and don’t be afraid to show your cards,� says Fish. “Just because you’ve shown your cards doesn’t mean someone else can duplicate them. Share your weaknesses just as easy as your strengths, and doing this will create a safe environment to allow others to do the same!� Her advice for business owners, gleaned from The E-Myth, is: “Stop working in the business and start working on the business. Don’t be your best employee or buy yourself a job by being an entrepreneur! You should always make sure the sum of the parts is greater than the whole!� biz Carol Gifford is a Charlotte-based freelance writer.

Integra Staffing, LLC 4601 Charlotte Park Dr., Ste. 150 Charlotte, N.C. 28217 Phone: 704 527-9191 Principals: ! -ICHELLE &ISH #%/ 2OBERT &ISH 0RESIDENT 2OB 2EYES %XECUTIVE 6ICE President Established: 2002 Employees: )NTEGRA AND PARTNERS Divisions: )NTEGRA 2X 3OLUTIONS CLINICAL AND CLERICAL HEALTH CARE RECRUITING AND STAFlNG "ANKSTON 0ARTNERS RECRUITING AND CONSULTING IN !CCOUNTING AND &INANCE )NFORMATION 4ECHNOLOGY 0ROJECT -ANAGEMENT AND 3ALES AND -ARKETING $IVERSITY &ORUM NON PROlT connecting community and business leaders TO EXCHANGE IDEAS ON HOW DIVERSITY AND INCLUSION CAN SPUR BUSINESS INNOVATION AND create sustainable growth opportunities Business: !WARD WINNING RECRUITMENT AND STAFlNG lRM THAT HELPS Fortune 500 and COMPANIES THROUGHOUT THE 5 3 LOCATE HIRE AND RETAIN HIGH QUALITY PROFESSIONALS BY streamlining the recruitment and candidate selection process. www.thediversityforum.org www.bankstonpartners.com www.integrastaffing.com

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Instant Marketing with QR Codes

QR Codes (Quick Response Codes, QRCs) are a relatively new, 2-dimensional form of barcodes. Already very popular in Europe and Japan, businesses and consumers throughout the U.S. are discovering hundreds of exciting uses for this flexible, convenient (and free) information connection. How QR Codes Work… QR Codes can be displayed almost anywhere. They can be found on printed literature, business cards, highway billboards, product packaging, advertising banners and more. They can be inserted into digital signage and even screen printed onto apparel. QR Codes include embedded text information, web page links and simple programming commands that directly connect customers to timely information about you, your business, and your products or services. Using a mobile “smart phone,” equipped with a built-in camera, customers simply snap a digital photo of the code symbol. Then a free, downloadable QRC “reader” interprets the code and initiates one or more actions, such as accessing a Web page or online map using the phone’s Web browser, displaying onscreen text information, opening an e-mail delivery (mailto) form, sending a (SMS) text message, dialing a phone call or other actions. What QR Codes Can Do for Your Business… QR Codes can be your on-demand sales and customer service representatives. Display text messages, exchange vCard information, initiate a phone call, link to prerecorded audio or video, collect customer “loyalty points,” facilitate online purchases like e-tickets, and easily perform other customer interactions. You can specify a limited date range to convey your content or provide ongoing access to your information. And, each customer connection can be tracked by your organization. Further, you can update and personalize information provided at the point of the exchange. Messages can be updated manually or programmed to change automatically based on the time of day, day of week, weather conditions, etc. Many QRC readers can utilize the mobile phone’s built-in GPS locator and customize information based on the customer’s current proximity. Content can be changed by the business any time to take advantage of current weather or business conditions.

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[bizPROlLE]

carol gifford

AAA

Is There with Car Care and so much more

HN*,1+:-81(@,*4( 35-)(60,(38+13(35-(FFF( 280,.=(W-(.*(4503-;-8( 4-(60,(3*(<8-1-8;-( 3503(38+13\(/3(/1(35-( @-)(3*(*+8(1+66-11=== F3(35-(-,.(*'(35-(.0)9( /3L1(,*3(02*+3(1-77/,C=( FFF(N08*7/,01(*''-81( 4*87.E67011(1-8;/6-(0,.( 0(6*::/3:-,3(3*(2+/7.( 0(7/'-3/:-(8-703/*,15/<( 4/35(*+8(6+13*:-81(1*( 35-)(4/77(65**1-(3*(6*:-( 3*(+1(45-,(35-)(,--.(35-( 1-8;/6-1(4-(*''-8=I( ~Dave Parsons President and CEO

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merica’s love affair with cars is going through a revival. After the government bailout of the auto industry car sales slumped, only to pick up again when American carmakers unveiled new models, designs and features engineered to compete and beat foreign competitors. That’s good news for AAA Carolinas and its emerging car care business. More cars per household, more expensive cars, and consumers keeping their cars longer, all add up to more demand for car maintenance and repair services, says Dusty Holcomb, recently named president of AAA Car Care Centers. With over 1.8 million members in the two Carolinas, it is one of the fastest growing AAA affiliates in the country over the last 20 years. With AAA Carolinas’ hefty customer base and the number of car owners in the Carolinas, the market opportunity is huge. The AAA Brand If you think that AAA Carolinas’ Car Care Centers are cropping up everywhere, it’s not your imagination. “With the downturn in the economy and the availability of affordable real estate, we took advantage of it,” says Holcomb. “We see continued opportunities for growth this year and beyond in our car care business.” The number of AAA “superstores” are also increasing to meet the demand. The two most recent additions, one in Ballantyne and the other in Steele Creek, bring the number of Car Care Centers to 30, including 10 additions in 2009 and two in 2010. Six more are scheduled to open this year. “Our superstores are anchored by the Car Care Centers,” says Holcomb. “Previously, we located our membership/travel/insurance offices in strip centers but today we combine our entire offering under one roof. This has reduced our cost of occupancy and given us the opportunity to co-locate the new superstores in higher-traffic retail areas, such as the corner of Ballantyne Commons Parkway and North Community House.” “With their combined offerings, superstores offer access to car care and other services in a clean, upscale setting where customers can relax, get coffee, watch television, connect to free Wi-Fi, and watch their children play in a play area,” continues Holcomb. Dave Parsons, president and CEO of AAA Carolinas since 1991, explains their growth strategy: “It’s about growing membership to achieve scale, and offering those services which we feel both provide added value to our members and take advantage of markets that are underserved.” He points to the Car Care Centers, first offered in 2001, which offer customers a trustworthy name in automotive maintenance $ and repair and fit hand-in-glove with the other AAA businesses. automotive

+

travel

+

insurance

David E. Parsons President and CEO AAA Carolinas

C O N S T R U C T I VE C A T A LY S T FO R C RE A T I VE C O N S C I O U S N E S S

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“Consumers know they can trust the AAA brand. We do whatever we can to preserve that trust; it is the key to our success,” says Parsons, humbly. Largest Travel Agency in the Carolinas AAA Carolina’s most well-known retail business is travel services. “Our leisure travel agency is the largest in the Carolinas,” says Parsons, noting that travel’s gross revenues are around $240 million annually, which gives customers access to tremendous travel deals. “Whether you’re taking a short drive to Charleston or booking a dream cruise to the Mediterranean, AAA Carolinas can help with the trip,” says Parsons, “and likely will save you money and avoid problems over booking it yourself.” “Travel was hit hard by the recession. Both leisure and business travel decreased and people waited to see what was going to happen with the economy before making any plans,” acknowledges Parsons. “We had a down travel year in 2009, but then things picked up last year. There was a pent-up demand in the travel market that was released by significant price cutting and some tremendous values,” he continues. “We saw a 26 percent increase in travel from 2009 to 2010.” No Ducks, No Lizards, Just Great Insurance !Travel Insurance services are also available through licensed insurance agents at the AAA superstores. Agents offer insurance quotes through a number of carriers to give customers more options and better rates. AAA Carolinas offers a portfolio of insurance products through national insurance carriers or can provide auto coverage through The Members Insurance Co., or TMIC, its wholly owned insurance subsidiary. Those AAA Members who qualify can receive discounts for mature operators, multiple car policies, auto and home policies and clean driving records. Insurance is a fastgrowing business for the company, growing by 25 percent year over year for the past few years,

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according to Parsons, with annual premiums of nearly $100 million. Traditional Automotive Servicing AAA is most often thought of in terms of its original purpose, offering assistance to motorists who have vehicle breakdowns. No doubt, most people associate AAA with tow trucks and roadside assistance. In 2010, AAA ran over 850,000 road service calls in the Carolinas. In addition, maps, tour books, Triptiks, and drive vacation planning is also available to members. AAA membership, available at six different levels, begins at $49 a year. All tiers include roadside service calls but the !Automotive number of miles your car can be towed for free changes per membership tier. With a Premier membership, you can be towed 200 miles and a free rental car is also provided. “Show Your Card and Save is a great member service which, when taken advantage of, will more than pay for the cost of your membership, Parsons points out. “Discounts on travel, hotels and many national and regional products, services and entertainment are available. You can save money on clothing, phone services, restaurants, Dish satellite service, satellite radio, eye glasses, pets, and prescription services.” “Our discounts range from national retail services to local events,” says Parsons. “One recent deal, available to members during the Queen’s Feast restaurant event in Charlotte, allowed people to purchase a $25 coupon that could be redeemed for $50 at any participating restaurant.” Car Care Front and Center Automotive maintenance and repair services build on the legendary mainstay of AAA—roadside assistance. “We receive 2.4 million telephone calls in our call center each year,” says Holcomb, who first came to AAA Carolinas in 2000 from banking to lead the transfer of the call center from Charlotte to Roanoke Rapids. “We dispatch tow trucks to service over 850,000 members each year. “By including automotive repair in our product offering, !Insurance we can offer more solutions to

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members whose cars have broken down,” says Holcomb. “We can tow the disabled vehicle to one of our Car Care Centers and offer a total solution to their automotive problem.” Another reason Car Care Centers are growing is that demand is up. Consumers in today’s economy are trying to save money and hold down expenses, which means keeping their cars longer. At the same time, consumers are buying more cars to better accommodate busy lifestyles. Families may purchase a car for each member old enough to drive; many homes have three or four cars in the driveway.

“It’s about growing membership to achieve scale, and offering those services which we feel both provide added value to our members and take advantage of markets that are underserved.” ~Dave Parsons President and CEO

CANON BUSINESS SOLUTIONS TERECK Inc.

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Beth Simms, a AAA Carolinas member in Mt. Pleasant, S.C., recently took her car in for a maintenance check at a AAA Car Care Center nearby. “I get my 3,000 mile maintenance and oil change service through the Car Care Centers,” says Simms. “I also recently had my brakes replaced as well as my timing belt which became defective due to an antifreeze leak. “The technicians were helpful and informative throughout the process,” she says. “As a women, I know that matters of the car are things we normally shy away from, but the techs went so far as to draw diagrams to explain what had gone wrong, and they took me out in the garage to show me how they would fix it.” Building a Lifetime Relationship “The increased demand for car care services goes along with our mission statement to offer members value, safety and total peace of mind in all things automotive, travel and insurance,” says Holcomb. “It really resonates with our customers. “We carried the AAA brand to our Car Care Centers,” says Holcomb. “Our motto is: One Time, On Time, Courteous, Honest Service. Customer service distinguishes our Car Care Centers. We don’t manufacture or sell auto parts; what we offer is world-class service.” In general, says Steven Knooihuizen, Car Care Center regional manager, customers should bring their vehicles in for maintenance/service checks every 3,000 miles or at a minimum two or $ three times a year. All car brands are serviced

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at Car Care Centers, chemically measure he says, so a family how much “life� is can bring three or left in a fluid, he four different cars to says, so a customer the same place. could find out if the “One of the things transmission fluid done differently at is near the end of Car Care Centers,� its useful life. says Knooihuizen, “We focus on $AVE 0ARSONS AND $USTY (OLCOMB STANDING BESIDE A “is that we follow the maintenance,� VINTAGE !!! TOW TRUCK ON DISPLAY AT THE HEADQUARTERS car manufacturer’s says Knooihuizen, recommended service intervals for the vehicle “because we want to keep your car on the road instead of making our own maintenance/service as long as possible. Most of our car care busicheck-off sheet to fit all vehicles.� ness, 73 percent, is maintenance-related, the remainder is repair. “When your vehicle is properly maintained, you aren’t likely to break down on the side of the HW-(6088/-.(35-(FFF(280,.( road with an overheated car or a dead battery,� 3*(*+8(N08(N08-(N-,3-81=X+8( he says. “And, when you’re making car payments :*33*(/1](X,-(>/:-9(X,(>/:-9( for five to seven years—when you’re making that N*+83-*+19(S*,-13(?-8;/6-=( kind of investment—you want to be sure your N+13*:-8(1-8;/6-(./13/,C+/15-1( vehicle lasts to 200K.� AAA members receive a 10 percent discount *+8(N08(N08-(N-,3-81=(W-( on labor for automotive repairs and a 24-month, .*,L3(:0,+'063+8-(*8(1-77(0+3*( 24,000-mile warranty on all repairs—double what <0831\(4503(4-(*''-8(/1(4*87.E is offered by most dealers and auto repair shops, says Holcomb. In addition, they receive discount 67011(1-8;/6-=I coupons for oil changes and specials such as brake ~Dusty Holcomb repairs or winter or summer tune-ups. President of AAA Car Care Centers “At the end of the day, it’s not about selling. AAA Carolinas offers world-class service and a com“Our goal is to help customers make their mitment to build a lifetime relationship with our cars last longer. If vehicles are serviced accordcustomers so they will choose to come to us when ing to the manufacturer’s designated guidelines, they need the services we offer,� says Parsons. biz there’s no reason a car can’t last to 200,000 miles Carol Gifford is a Charlotte-based freelance writer. and beyond,� says Holcomb. “We offer a special program to get it there: ‘On Your Way to 200K’, a one-year preventive service package.� Carolina Motor Club, Inc. dba When it is time to replace a vehicle AAA also AAA Carolinas offers its members and customers an Auto Sales 6600 AAA Drive service designed to seek below-market prices for Charlotte, N.C. 28229 new and used cars. “AAA’s consumer specialists Phone: 800-888-3262 can find specific vehicles and sales are often Principals: $AVE 0ARSONS 0RESIDENT AND completed over the phone and the vehicle is then #%/ 3ARAH (ENSHALL 6ICE 0RESIDENT 4RAVEL delivered to the home or office of the purchaser, *IM -C#AFFERTY 6ICE 0RESIDENT )NSURANCE $USTY (OLCOMB 6ICE 0RESIDENT !UTOMOTIVE eliminating dealership sales hassles and bureau3ERVICES cratic paperwork,� said Holcomb. Additionally, Established: all pre-owned vehicles purchased through AAA Employees: 1,400 come with the On Your Way to 200K package. Business: .OT FOR PROlT CORPORATION THAT Most people think car maintenance means PROVIDES SPECIALIZED SERVICES TO MEMBERS an oil change every so often, but maintenance WHICH INCLUDES EMERGENCY ROAD SERVICE encompasses transmission services, proper fluids TRAVEL AND AUTO TOURING SERVICES ACCESS TO DISCOUNTS INSURANCE SERVICES AUTOMOTIVE and filters, and tires. At the Car Care Centers, MAINTENANCE AND REPAIR AND WORKS TO it includes TLC, or Total Lubrication Care, a IMPROVE MOTORING AND TRAVEL 30-point booklet that explains the condition of safety in the Carolinas. the vehicles, the fluid levels, and air pressure. www.aaa.com “We give it to our customers so they can see what’s needed, not just hear us tell them,� says Knooihuizen. It includes strip tests that

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