Greater Charlotte Biz 2011.08 by CLT.biz & Charlotte Biz & Greater Charlotte Biz

legalbiz

bizview

consultingbiz

webbiz

accountingbiz

employersbiz

august 2011

iconic southern

southern belk

rebranding

emphasizes heritage

(l to r) Jonathan K. Pollack Executive V.P. of Sales Promotion, Marketing and E-commerce Kathryn Bufano President and Chief Merchandising Officer Belk, Inc.

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in this issue

cover story

Belk

The Belk name is iconic for southern style. From its modest beginnings as a leased store on the corner of Monroe’s Main and Morgan, to its present 304 stores in 16 southern states, Belk, Inc. is currently the largest privately owned department store in the nation. And with the rebranding initiative they kicked off in October 2010, their first major rebranding since 1967, Belk’s focus is clearly set on the future.

12 CHS Carolinas Corporate Health & Wellness

For the past 25 years, Carolinas Corporate Health & Wellness has been providing one of the most extensive and respected corporate health programs in the Charlotte region. Their broad range of services available to employers includes occupational medicine, wellness services, health fairs and on-site clinics.

departments publisher’spost

legalbiz

Transforming the Business of Law to Meet the Needs of Business

16 Hotel Sierra Charlotte

bizview

This brand new upscale, boutique hotel is situated on prime real estate in a high-barrier-to-entry marketplace. “Our location is a great selling point,” says General Manager Don Lockhart.” And so it is, as Hyatt Hotels announced its acquisition of the property to expand its presence in the extended stay market.

Managing and Delivering Change to Optimize Business Value

Center City/Hyatt

28 Killingsworth Environmental Owners Mike and Debbie Rogers have built a brand around Killingsworth Environmental, providing the most effective and innovative pest control and home care solutions available—solutions that often follow unconventional, but remarkably successful paths. Mike and Debbie expect their company to continue growing steadily and sustainably.

34 Simile Imaging Solutions “It’s really not that complicated!” says Mark Gasior, echoing Peter Morici in the current Kyocera marketing campaign emphasizing the supply and service savings of Kyocera’s line of multifunction machines. He credits much of his company’s success to being persistent, staying focused, and being committed to the marketplace.

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Vanguard Vision

consultingbiz

webbiz

New Media Strategies, Secrets and Solutions

accountingbiz

Accounting, Tax and Consulting Solutions

employersbiz

Legislative and Regulatory Highlights for Area Employers

biznetwork

on the cover: Jonathan K. Pollack Executive V.P. of Sales Promotion, Marketing and E-commerce Kathryn Bufano President and Chief Merchandising Officer Belk, Inc. Photo by Wayne Morris

legalbiz

bizview

consultingbiz

webbiz

accountingbiz

employersbiz

august 2011

iconic

southern BELK

REBRANDING

EMPHASIZES HERITAGE

  CHS Carolinas Corporate  Health & Wellness Hotel Sierra Charlotte    Center City/Hyatt   Killingsworth Environmental  Simile Imaging Solutions    Scan to view greatercharlottebiz.com (l to r) Jonathan K. Pollack Executive V.P. of Sales Promotion, Marketing and E-commerce Kathryn Bufano President and Chief Merchandising Officer Belk, Inc.

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Insurers

Hospitals

Pharmaceuticals

Individuals

Doctors

Attorneys

Let’s stop looking for scapegoats and start talking. It’s time for an open discussion about rising medical costs. Join the conversation at LetsTalkCost.com

[publisher’spost] 704-676-5850

The Real Impact of Health Care Reform “The shift away from employer-provided health insurance will be vastly greater than expected and will make sense for many companies and lower-income workers alike.” ~McKinsey Quarterly, June 2011 Skip Knauff of Knauff Insurance was kind enough to send me a copy John Paul Galles of the McKinsey & Company Quarterly dated June 2011. On its cover was the quotation shown above. Its portent is rather sobering to those who sell employerprovided coverage, but it should also be sobering to employers and employees alike. Passage of the Affordable Care Act of 2010 sets in motion the most significant reform of our health care system since the provisions allowing employer-provided coverage without taxation were enacted during World War II. Wages had been frozen, so employers were allowed to attract workers with health care coverage without the cost of that coverage being taxed as income. Indeed, what has passed is not just bits and pieces of reform, but systemic reform that fundamentally changes the way health care is delivered and paid for in the United States. Most of the act’s provisions take effect in 2014. As employers discover the new economic and social incentives in the law as well as the option to restructure benefits beyond dropping them or keeping them, many will choose to make substantial changes. In an early 2011 survey of more than 1,300 employers across a scientific sample of businesses, it was found that reform will provoke a number of responses, including: • 30 percent of employers will definitely or probably stop offering employer-sponsored insurance (ESI) in the years after 2014. • Among employers with a high awareness of reform, this proportion increases to more than 50 percent and upward of 60 percent will pursue some alternative to traditional ESI. • At least 30 percent of employers would gain economically from dropping coverage even if they completely compensated employees for the change through other benefit offerings or higher salaries. • Contrary to what many employers assume, more than 85 percent of employees would remain at their jobs even if their employer stopped offering ESI, although about 60 percent would expect increased compensation. The end result is not clear except that ESI will be radically different from today. With the new law’s guarantee that individuals will have the right to health insurance regardless of medical status, the social contract between the employer and employee is radically altered. The “moral obligation” of the employer is minimized. At the same time, the mandate on individuals to obtain coverage turns the responsibility on to the employee and away from the employer. Corporate tax advantages will be retained except for high-premium insurance plans. Income-indexed premiums and out-of-pocket subsidies will be offered to people to make it affordable to all. Higher subsidies will go to lowest-income workers. Decisions about providing ESI will become strictly business decisions. Many other provisions of the law will affect benefit plans and will be guided by incentives and/or penalties. To continue to attract and retain their better employees, employers will have to be increasingly sharper about meeting the needs of their employees through the plans that they offer. Desirable products and services will likely win out over individual coverage that may be more cumbersome and unattractive. What is most important for this new health care system to succeed is for employers and employees to be more engaged as consumers of health care. It is important that this new system be consumer-centric. As individuals become more involved in selecting coverage and choosing health care services, costs will be contained and in some cases reduced. The direct interaction between payers and providers will encourage healthier living and lifestyles. Systemic reform requires substantial change and that is about to occur in the next three years. It will not be painless; it will not be easy; and we will not know if it is better until we have operated under the new system of health care and had a chance to evaluate its impact. Stay tuned. More to come. biz

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

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August 2011 Volume 12 • Issue 08 Publisher John Paul Galles x102 jgalles@greatercharlottebiz.com

Associate Publisher/Editor Maryl A. Lane x104 mlane@greatercharlottebiz.com

Creative Director Trevor Adams x107 tadams@greatercharlottebiz.com

Sales Manager Chris Sessions x106 cell: 704.816.0605 csessions@greatercharlottebiz.com

partners CC Communications, Inc. Central Piedmont Community College hiSoft Technology International Limited Potter & Company, P.A. The Employers Association Wishart, Norris, Henninger & Pittman, P.A.

Contributing Writers Zenda Douglas Barbara Fagan Carol Gifford Heather Head Casey Jacobus

Contributing Photographers Trevor Adams Wayne Morris Galles Communications Group, Inc. 7300 Carmel Executive Park Dr., Ste. 115 Charlotte, NC 28226-1310 704-676-5850 Phone • 704-676-5853 Fax www.greatercharlottebiz.com • Press releases and other news-related information: editor@greatercharlottebiz.com. • Editorial: mlane@greatercharlottebiz.com. • Advertising: jgalles@greatercharlottebiz.com. • Subscription inquiries or change of address: subscriptions@greatercharlottebiz.com. • Other inquiries: please call or fax at the numbers above or visit our website www.greatercharlottebiz.com. © Copyright 2011 by Galles Communications Group, Inc. All rights reserved. The information contained herein has been obtained from sources believed to be reliable. However, Galles Communications Group, Inc. makes no warranty to the accuracy or reliability of this information. Products named in these pages are trade names or trademarks of their respective companies. Views expressed herein are not necessarily those of Greater Charlotte Biz or Galles Communications Group, Inc. No part of this publication may be reproduced or transmitted in any form or by any means without written permission from the publisher. For reprints call 704-676-5850 x102. Greater Charlotte Biz (ISSN 1554-6551) is published monthly by Galles Communications Group, Inc., 7300 Carmel Executive Park Dr., Ste. 115, Charlotte, NC 28226-1310. Telephone: 704-676-5850. Fax: 704-676-5853. Subscription rate is $24 for one year. POSTMASTER: Send address changes to Greater Charlotte Biz, 7300 Carmel Executive Park Dr., Ste. 115, Charlotte, NC 28226-1310.

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[legalbiz]

he North Carolina Court of Appeals recently upheld a ruling where a former employee was entitled to unemployment benefits even though the employment was terminated because the employee was in jail for four months. In this case, the employee worked at a fast food restaurant. When the employee was released from jail after a four-month incarceration, his employer said he no longer had a job. The employee then filed an unemployment claim. The employer contested the claim on the grounds that the employee had “left town,” and the Employment Security Commission (ESC) investigator agreed with the employer. The investigator found the employee left his employment without good cause attributable to the employer. The employee appealed. The employer did not participate in the appeal hearing conducted by telephone. The appeals referee rejected the employee’s claim, but for a different reason than the employee leaving without good cause. The appeals referee found the employment was terminated as a result

of the employee being in jail and classified that as misconduct related to work. The employee then appealed to the full ESC. The full ESC and every court through the Court of Appeals reversed the decision of the appeals referee. The employee got unemployment benefits. Why? In short, because the employer didn’t show up for the appeal. The case changed from the employee leaving work without good cause to the employee being fired for cause as a result of the appeals referee’s findings. The employer did not present any evidence at the appeal that supported a termination for cause because the employer wasn’t there. In addition to emphasizing the need for employers to participate in all steps of the ESC process, the Court of Appeals also showed that simply being in jail does not, by itself, show that you have “cause” to terminate employment. You must be able to show that the incarceration in fact violates your workplace conduct rules. The burden is on the employer to show why the employee should not get benefits. Make sure you can.

›Retaliation Can Be Timeless Imagine you have an employee who does not like your response to his complaints and quits his job with you. Two years later, this same person applies for a job with you, and you don’t hire him. Was your decision to not rehire him retaliation against him? According to the Fourth Circuit Court of Appeals, it could be. An employee of First Tennessee Bank quit her job after she complained of sexual harassment and did not believe that management in the bank properly handled her complaint to remedy the harassment and prevent future harassment/retaliation. Two years later, she applied for a job with the bank. She was not

rehired because she had “issues with management.” The Court of Appeals decided that, even though two years had passed, the bank’s decision could qualify as retaliation. It was the first time the bank had to retaliate against her since she quit her job two years prior. (It is important to note that this decision only meant that the former employee could continue with her lawsuit; it did not mean she would win once all of the facts were known.) As a result of this case, you should review your policies about rehiring former employees. The number of claims being brought by former employees who are not rehired is increasing.

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

Almost every business has confidential proprietary information. The information can include customer lists, credit information, financial information, pricing policies, internal manuals or “the secret formula.” Confidential information has economic value to your business because it is confidential, and your business could suffer if someone took that information and used it or disclosed it. In most businesses, the owner cannot protect this information by simply not telling anyone else. Your employees will have to know enough of the information to be able to do their jobs well. It is up to you to maintain the necessary protections on the information you share with employees. First, when dealing with information that you want to keep confidential, you must keep it confidential! You cannot leave the information lying around for all to see, even if it is just lying around your office. If you allow open access to information to all of your employees, whether they need to know the information or not, or if you are not careful to keep information from being accessible to all of your employees, you may lose the ability to claim the information is confidential. Second, have confidentiality policies and agreements that your employees acknowledge and sign. Maintain active policies and procedures for handling confidential information so that only those people who need to know the information actually know it. These procedures include how the information is stored and shared with others. If you do not take adequate precautions when handling your confidential information, you may not be able to stop that ex-employee who discloses it. Also, it might be published in a British tabloid.

Content contributed 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 Gary Smith at 704-364-0010 or visit www.wnhplaw.com.

august 2011

[bizview]

John S. Kreighbaum Vanguard Vision

Unique Approach:

High-tech, High-touch

hen Carolina Premier Bank opened its doors a little over three years ago, no one imagined the financial turmoil that would affect local, national and global economies and the resultant impact of regulatory reform and, more importantly, the survivability of community banking…and a bank like ours. For many who trade in securities of financial institutions, for example, the year 2008 is seared in the consciousness with the fierceness of a cattle brand. Investors who celebrated the New Year with robust portfolios found themselves 12 months later considerably diminished. Along the way many well-known institutions simply disappeared from the landscape. The Federal Housing Finance Agency put Fannie Mae and Freddie Mac into government conservatorship and finally short selling in all financial stocks to try and slow the free-fall was banned. In spite of these challenges, Carolina Premier Bank was putting a uniquely new operating culture into practice. Fast forward, this operating culture has not only survived but prospered during the most challenging times in banking history.

Since opening, our board has not deviated from our disciplined plan. Rather, they have tightened our procedures to make Carolina Premier Bank a profitable going concern with a sterling reputation, scalable and strategically positioned with strategy and flexibility. I don’t have to tell you that times have changed in the banking sector, in the national economy and in Charlotte. You know from the headlines that Charlotte has the highest unemployment and worst metropolitan real estate market in the state. Notwithstanding these and other considerations, it is our belief that a bright window of opportunity exists for wellpositioned bank holding companies like our recently approved Premara Financial, Inc. There are strong predictions of massive consolidations in our industry. Some say as many as 4,000 banks will consolidate over the next five years...that’s almost half of the banks now. From our early beginnings, I have advanced John S. Kreighbaum, President and CEO the firm position that we would not embrace a

We have something that many banks don’t have. We have a unique approach to banking, the high-tech, high-touch approach that combines the latest in technology with old-fashioned customer and community service. follow-the-leader operating mentality, nor plagiarize one of the canned versions of strategic plans that are out there, nor seek unproductive longterm value actions such as following the antiquated mentality of building branches that will become unnecessary burdens as technological integration continues to be embraced by customers. And most importantly, our directors have worked prudently through the process of understanding the state of our market today, given considerable thought to where the bank should be strategically, and defined it clearly through a formalized detailed plan that will take us through the coming years. Since opening, our board has not deviated from our disciplined plan. Rather, they have tightened our procedures to make Carolina Premier Bank a profitable going concern with a sterling reputation, scalable and strategically positioned with strategy and flexibility. We have something that many banks don’t have. We have a unique approach to banking, the high-tech, high-touch approach that combines the latest in technology with old-fashioned customer and community service. We have tweaked and refined this approach, and road-tested it with Carolina Premier Bank. Our method of running a bank works and we have the results to prove it.

So here is where we are today: ■ We have a bank unlike anything in this or any other community. ■ We are positioned for both organic and acquisition-strategic growth. ■ We have a bold plan for continuing our unique and successful way of doing business. Our experience over the last three to four years has highlighted the need to build a bank which has both geographic and customer diversification in order to build a franchise which is sustainable in volatile markets and to achieve a high valuation for the benefit of shareholders. Content contributed by John S. Kreighbaum, President and CEO of Carolina Premier Bank and Premara Financial, Inc.The views expressed herein are those of the contributor and not necessarily those of the publication. Contact John Kreighbaum at kreighbaum@ carolinapremierbank.com or 704-752-9292, or visit www.carolinapremierbank.com.

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hiSoft Technology International Limited

[consultingbiz]

Global Partner for Success

EFFECTIVE CUSTOMER PROFITABILITY ANALYSIS

rofound changes are occurring across today’s corporate landscape. After years of record earnings, major U.S. banks find their future projected revenue stream flat due to increased government regulation. Conversely, energy companies and utilities are grappling with deregulation and transforming themselves into more competitive entities. Manufacturing and retail firms continue to face increased competition from global competitors. Now, more than at any time in recent history, U.S. companies need to understand the economics of their business model that drive the fundamental creation of profit. To this end, many firms have developed robust models to determine the profitability of individual customers, either as in-house proprietary IT models or expensive off-the-shelf software programs, that have delivered less than the value promised and been difficult to develop and implement. However, with a pragmatic approach and the right team, profitability analysis can be executed effectively. Most firms attempt to model profitability by developing Activity Based Costing (ABC) models to assign costs to individual clients or products. This technique, originally developed and refined at Harvard Business School in the 1980s, has fallen in and out of vogue over the last couple of decades. Unfortunately, the reality of implementing ABC models can be far more difficult than the academic theories sound when taught at business school. It is unfortunate that so many firms abandon their efforts. What is often misunderstood in these initiatives is that, in addition to having a team well grounded in finance and cost accounting, successful implementation also requires strong organizational change management, project management, and interpersonal communications skills. In addition, the team should have an aptitude and fundamentally sound understanding of technology applications to drive effective automation of such an effort. Profitability Analysis is truly one of the most cross-functional projects any organization can undertake, and despite the underlying financial analysis that goes into the modeling, the effort is very much an organization change management initiative and it is important the right individuals lead such an effort to ensure success. Here are some key points the management team should consider when embarking on developing a more robust financial model to understand which customers, or products, drive profit:

■ ABC is usually enabled as an IT tool, but it is not an IT project! Often operations managers are not adequately involved in the development of the financial models. From front-line managers, to the C-suite, operational managers must be involved in ABC modeling to make it work. ■ Ensure the information is transparent! The finance team, IT organization, and consultants should not create a “black box” that is not clearly understood by the operational consumers of this information. ■ The model will never be 100% accurate. This is not a realistic, or necessarily desirable, outcome. It is often said in this sort of modeling that it is better to be “Approximately right then precisely wrong!” The reality is not every cost center’s activities can be discretely measured and assigned to a product or client, generally because many cost centers spend time servicing clients, but that specific time is not recorded by any IT work flow system. It is best to find proxy measurements that best fit the situation for these cost centers and finish building out a basic model. ■ Don’t model every cost Mark Pieper, hiSoft center! One general rule out Managing Consultant there is that if a cost center has less than 5 FTE’s, or

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

$500K in annual spending, there is no appreciable gain in business performance by spending an inordinate amount of time modeling how to assign that expense to specific customer or product consumption. ■ Automate to the extent possible by leveraging existing IT systems. Initial ABC modeling efforts are often abandoned by a business because they rely on too many manual processes to feed their models. The allocation of time spent on feeding a model by valuable FTE resources begins to outweigh the benefit of the information provided and a business decision is made that it is no longer worth the effort. ■ GET GOING!! If left unchecked by the Project Manager, these sorts of projects suffer from “analysis paralysis.” Start with a small proof-ofconcept model and build on the momentum. Don’t try to model an entire business unit right off the bat. Look at a particular location, or specific shared service center, such as IT or HR. Show some value from the project within the first 90 days to demonstrate value to the business that substantiates the effort on the project. Understanding the customer or product profitability is vital for an enterprise to define how to orient their business. If a company lacks this sort of basic understanding of their business, how can they begin to ask themselves which customers they need to attract, which customers they may be better off without, and which internal transactional processes need to be improved to reduce costs? To successfully execute such a project the executive team needs to ensure they have the right types of individuals, with the right skills and aptitude, to make it a successful project. In addition, the executive team and the project team, whether they are external consultants or internal project team members, should carefully consider the issues outlined above as they deploy such a project. Content contributed by hiSoft Technology International Limited, a consulting ser vices firm. For more information, contact Managing Consultant Mark Pieper at mark.pieper@hisoft.com or 704-944-3155, or download a complimentar y copy of this white paper at www.hisoft.com/resources. Effective July 8, 2011, NouvEON has been acquired by hiSoft Technology International Limited and will operate under the hiSoft brand as the management and delivery platform for all U.S. IT Services. In addition to increasing our highvalue solutions, the move will solidify hiSoft’s presence in the United States. Since 1996, hiSoft has delivered world-class Information Technology, Research and Development, and Business Process Outsourcing services to clients globally.

august 2011

CC Communications, Inc.

[webbiz]

New Media Strategies, Secrets and Solutions

QUESTION Building a smarter, more productive online strategy can pay huge dividends to your business in more ways than one. Reinforcing customer loyalty, gathering critical marketplace feedback, and portraying your company as an industry leader are as critical as the direct pursuit of new leads and immediate sales through your website. Here are a few more suggestions to help energize your Web marketing process. Think more “Power Boosters.” Invite participation and remove obstacles… Think of your website as a virtual and ongoing, face-to-face conversation with customers and prospects, where their input carries equal weight as the information that you hope to convey. Embed brief visitor polling questions within the sidebar of key Web pages. Create a customer “user group” providing an open-ended “discussion forum” that invites frank comments, questions, ideas and suggestions about your services. Demonstrate your commitment to customer satisfaction by clearly publishing a direct email address inviting clients to freely correspond personally with the company’s president. Generate more positive responses from your website by removing annoying features that can turn off visitors. Replace poor quality or outdated graphics and layouts. Remove Under Construction pages and pop-up screens that can irritate and derail the communication exchange. Consider dropping “captcha” visual validation requirements from your interactive forms, which can inadvertently turn away just as many real customers as malicious spambots. Deactivate extraneous background music players and instant loading video content.Avoid the use of tiny font sizes, slow loading images, overly complex dropdown navigation and other features requiring extra patience or unnecessary effort by your intended audience. Keep it fresh, new and exciting… Frequent contact can promote and strengthen relationships with your customers, so give them reasons to return and interact with you. Repeat visits solidify customer loyalty and open the door to upsell opportunities. Blogs are particularly helpful in this regard. By adding regular updates to blog posts, readers experience something new during each session. Customers who respond with comments provide insight that can lead to future sales. There are numerous ways to maintain a fresh appearance for your website. Regularly replacing inserted images within your pages extends the life of surrounding text content. Making periodic site-wide color changes to your website’s style sheet (CSS) coding is another quick and inexpensive way to keep your content looking new.Also, change your website’s background image or texture on a monthly basis to maintain a fresh look and feel. Say it like you mean it… Too often, too little time is devoted to the actual written words that appear in a website.When communicating online, substance matters, while the sizzle will usually just get in the way. Present text in a concise and informative manner, composed in a friendly, approachable style. Avoid the use of technical jargon, abbreviations, slang, and obscure references that could confuse a novice customer. Avoid the overuse of capitalization, excessive punctuation, and multi-colored or overly styled fonts. Formatting is also important, along with the strategic use of headlines, text captions and sidebar notes that guide the reader towards your desired course of action. Providing extensive and complex content is still okay, but don’t expect the first time visitor to slog through it all just to gain a sense of your product’s unique value. Get to the point quickly, posting optional supplemental content in the form of downloadable whitepapers, specifications tables, footnotes, and links to other detailed resources. The written word is also critical to search engine recognition that drives customers to your door. Inclusion of clear, pertinent, keyword-oriented phrasing is the leading criteria used by Google,Yahoo! and Bing for connecting visitors to your website. If you do not have an experienced Web content writer in ~Kip Cozart your organization, consider an outside consultant.

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ANSWER I have a Q: Should Smartphone?

~Rock Hill, S.C.

That’s a very popular question right now. Recent statistics released by Pew Internet Project indicate that 35% of all U.S. adults own a smartphone. Nielsen and comScore report that 33% to 38% of U.S. mobile phones are smartphones. Pew also found that 87% of smartphone users go online or get email and that almost 70% do so daily. Pew also asserts that 25% of smartphone owners already prefer their smartphone for Internet access over their PC. And that number is only projected to grow. As soon as 2013, Gartner predicts that usage of smartphones and other browser-enabled devices will surpass the utilization of traditional computers. While the final decision is still influenced by need and budget, the real question may be, “Why don’t I have a smartphone?”

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!

work Performance Website the Way ›LBPaves A well-paved roadway is one of life’s greatest pleasures. Windows down, radio on, we cruise without a care in the world. Often we whisper a silent thank you to the paving crews who did such a great job. These crews rely heavily on the capability, performance and reliability of their awesome paving equipment. In many cases, that equipment carries the renowned Blaw-Knox brand, represented by LB Performance and its network of equipment dealers. LB Performance emphasizes the manufacturer-dealer-customer relationship through their distinctive website located at www.LBPerformancePaving. com. Here customers can easily review commercial paving products and find local dealers. And authorized dealers can register equipment warranties, make warranty claims, track claims status, and more. Its easy-to-use interface and smooth functionality pave the way for the paving professional.

Content contributed 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, email, 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.

august 2011

ettain group is a nationally renowned IT solutions company that’s been headquartered in the Design Center for more than a decade. ettain needed additional office space, but didn’t want to leave their uniquely inspiring work environment, so we created 3,000 square feet of additional, customized space to meet their needs. We have a community of thriving businesses like ettain at the Design Center. If you’re interested in exploring Charlotte’s most unique address, call Meredith Dickerson at 704-971-6517.

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Potter & Company, P.A.

[accountingbiz]

Accounting, Tax and Consulting Solutions

Enhancing the Value of Your Business

very business shares at least one business objective: wealth creation for the owner(s). Every business has goals, stated or unstated, but all business owners want to be rewarded for their risk of investment. Business owners may be compensated for their work but they also desire to earn a return on their investment. What separates an owner from an employee is the risk of invested capital. Every privately owned business will eventually encounter one of the following succession transactions. ■ Selling the business; ■ Passing the business to a family member; or ■ Winding down and liquidating the business. Business owners should begin implementing strategies well in advance (5 years or more) of the succession event. Understanding business value It is critical to understand what generates business value and how to position the business for maximum value. Business values are often discussed in the terms of a multiple of cash flows. The multiple is simply the price paid for the business divided by the operating cash flow generated by the business. Many factors influence the value of a business, cash flow is just one. Many businesses that seem very similar in nature, trade for very different multiples, as evidenced by price earnings ratio (P/E ratios) of similar, publically traded companies. There are many factors that influence business value including strength of product line, strength of distribution channels, depth of key personnel, and exclusive and/or geographic coverage. Business owners should consider two initial steps. First, carefully review the operating characteristics of the business to identify those areas where the business generates profits and how well the business stands against competition. This process is often an in-depth SWOT analysis (strength, weaknesses, opportunities, and threats) to understand where strategies are needed to improve and capitalize upon business operations. Secondly, the business owner should compare the characteristics of their business to similar businesses that have been sold to determine what factors drove business value. A great deal of information of recent private company sales is available in free and subscribed data basis systems. Strategies to increase business value Sustainable trends will help to increase business value. The investor in your business will want to be able to project the potential of future profits and cash flows. There are a few fundamental ways to make a company more profitable and thereby increase its value. ›Increase Sales Consider an in depth review of the business marketing plan, product packaging and delivery, and customer service activities. Many times a company can promote product Bucky W. Glover CPA, CVA, Partner or service superiority to differentiate themselves in the marketplace.

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Consider raising prices. Fear of competition and current economic conditions often makes companies hesitant to raise prices. A small price increase is not likely to be so significant to drive customers away, but will help to avoid larger price increases later just to keep pace with cost of living increases. Review your sales reports, determine how much your largest customers purchase in a year then consider new ways to obtain longer term supply agreements with your customers such as price discounts for multiple year supply commitments. Take steps to increase sales distribution channels. Distribution is all about getting products/services to customers in a timely fashion with consideration for profit and effectiveness. Evaluate how your end-users need to buy, and match your end-user needs to a distribution strategy.

›Improve the quality of your assets Stay up to date with accounts receivable collection efforts. Track key performance indicators such as the number of days sales in accounts receivable. Consider allowing early pay discounts to customers or finance charges to those who pay late. A buyer of your company would not want to deal with constant collection issues. Pay close attention to inventory turnover performance indicators. If your business turns over its inventory (converts inventory to sales) better than your competitors, your business will be more valuable to the potential buyer. Many businesses make the mistake of becoming too conservative as the succession event approaches, such as deciding to put a hold on new capital equipment purchases. Aging equipment and/or service fleets will distract from the business value. It is the same concept of estimating the cost of repairing or updating a house when offering a price for the purchase of a new home. If the business buyer will have to incur capital equipment costs soon after the purchase, it will distract from the amount they are willing to pay. Purchasing new equipment should also increase productivity. Increasing productivity—making more with less—is a key way to increase profits and business value. Streamline processes, and where possible, centralize similar tasks and have standardized procedures.

Conclusion Whether or not you have a clear goal to transition your business in the future, increasing your company’s value is a smart way to achieve improved business results. By working ON your business and not just IN your business, you can generate a larger return on the time and the capital you have invested in the business. By focusing on business improvements to increase your company’s value, you will directly benefit from a company that gives you greater returns. Content contributed by Potter & Company, a locally based certified public accounting firm offering core services of professional accounting, business consulting, and financial analysis. For more information, contact Bucky Glover at 704-283-8189 or visit www.gotopotter.com.

august 2011

[bizprofile]

by zenda douglas

Carolinas Corporate Health & Wellness improves health, reduces costs Employers and employees work together for health and a better bottom line

yunghee Chun attended the Johnson & Wales University Mind, Body and Soul Health Fair last September out of an immediate concern over her health. While she had a vague awareness that diabetes ran on her father’s side of the family, she had no symptoms. “It was so convenient that I thought I might as well go,” says Chun. She stopped by the Carolinas HealthCare System (CHS) biometric screening station and was surprised to learn that her blood glucose level was a whopping 471. Since she had eaten recently, the nurse had her wait for a second check which revealed a still alarming 280. (Blood glucose numbers between 90 and 100 are considered normal.) The health fair wake-up call led Chun to work with student health services and her primary care physician to become an active participant in her healthcare. She embarked on a low-calorie weight-loss program and learned techniques for stress management. Today, the culinary arts student, who is looking forward to working as a chef and managing her own restaurant, is 30 pounds lighter and managing her diabetes without medication. “They are truly saving lives,” says Chun. Chun’s story is but one example of the many ways in which CHS Carolinas Corporate Health & Wellness is working to have a positive impact on healthcare. “They are already invited back to the 2012 fair,” says Karen Hiney, Johnson & Wales’ health and counseling services director.

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Betsy Hayden Director CHS Carolinas Corporate Health & Wellness

“You would be surprised how many employees do not have a primary care physician. Health insurance is there, but it’s not convenient. We’re taking it to them through on-site physician scheduling services.” ~Betsy Hayden Director

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reaching toout our community The need for wellness For the past 25 years, Carolinas Corporate Health & Wellness has been providing one of the most extensive and respected corporate health programs in the Charlotte region. Their broad range of services available to employers includes occupational medicine, wellness services, health fairs and on-site clinics. A department of Carolinas HealthCare System, Carolinas Corporate Health & Wellness operates within a 13-county area. Services are performed by knowledgeable staff, health educators, nurses and other medical staff, including physicians. The occupational health network is comprised of approximately 50 facilities such as

urgent care centers, family practice offices and emergency departments to provide 24-hour medical resources for employers. Additionally, CHS operates 13 on-site clinics. While most employers claim as their first priority the health and well-being of their employees, there are also other benefits including reduction of employee absenteeism, improved employee retention, and increased productivity—with a reduction in healthcare costs. Healthier employees contribute to a financially healthier workplace. Carolinas Corporate Health & Wellness is headed up by Director Betsy Hayden, who has been involved since the beginning of the program.

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“For all these years, I’ve been knocking on doors and building relationships. It started with occupational health, and then expanded into a health promotions department, says Hayden. “Then, employers wanted us to come on-site and provide interactive services.” Originally from Timmonsville, S.C., Hayden started out in occupational medicine by registering injured employees in an urgent care setting. Although her mother, sister and niece are all nurses, Hayden says, “I’m rightfully situated in the sales arena; I can’t even look at a wound.” Dr. Larry Raymond, medical director of Carolinas Corporate Health & Wellness, is one of two physicians board-certified in ➤ occupational medicine within Carolinas

august 2011

HealthCare System. Occupational medicine is focused on safety, prevention and the treatment of injuries or illness that happen in the workplace. “We provide a service for many employers who need to be compliant with government mandates through the Department of Labor, Department of Transportation, and the Occupational Safety and Health Administration,” says Hayden. “Carolinas HealthCare System understands occupational medicine better than anyone else,” declares Danny Reece, safety and training specialist with Dole Fresh Vegetables out of Bessemer City. Reece, who has spent his career in manufacturing, says he has influenced a number of companies to switch to Carolinas Corporate Health & Wellness and now works with them on behalf of Dole employees. “They save us money and help to keep our employees working,” says Reece, who explains: “If an employee tells the nurse or doctor that they can’t run a particular job, most programs will put them out. Maybe what they mean is that they can’t lift 50 pounds—something that is part of the job only twice per day and can be handled by someone else. Carolinas Healthcare looks deeper. By acknowledging that the employee can do the majority of the job, they allow the employee to stay on the job and help to lower reportable injuries, which can increase insurance premiums.” Dole has had three reportable injuries this year, down from six last year. Long-time client, Time Warner Cable, headquartered in Morrisville, N.C., utilizes Carolinas Corporate Health & Wellness in the Charlotte region. “We use Carolinas Healthcare because they care about our employees,” says Louis Caraballo, manager, Risk Management & EHS Services. TWC technicians are out in the field on a daily basis doing installations and repairs. Often going into difficult spaces or climbing ladders, injuries can happen. “If the employee feels that they are taken care of, they want to return to work,” says Caraballo. Carolinas Corporate Health & Wellness also handles Department of Transportation exams for TWC. A choice of healthcare approaches Carolinas Corporate Health & Wellness has close to 2,000 clients ranging from one to 10,000 employees. “A client with only one employee may only need a drug screen,” explains Hayden. Clients come from diverse settings within manufacturing, food services, retail, transportation and government. “Every employer is different,” says Hayden.

“We’re working with employees who don’t take care of themselves as well as they should. Like everybody, our health insurance claims are up and we are trying to reduce them to keep our insurance premiums under control.” ~Deborah Jolly Director of Human Resources, City of Shelby

“Some want injury or acute care treatment, physicals for employees or HazMat care; others want wellness education programs, flu and pneumonia shots, or help with managing chronic conditions through an on-site clinic. We customize a program for each client according to their needs.” Charlotte Pipe and Foundry, a client since 1993, established an on-site clinic with Carolinas Corporate Health & Wellness in 2004 to give their employees access to a mid-level health provider (a nurse practitioner or a physician assistant) without having to leave work. The company now has on-site clinics in each of their two manufacturing plants and their corporate office in the Charlotte region. “They treat acute conditions such as sinus/ allergies and the common cold,” says Brett Henderson, associate benefits manager. “Now it has evolved into health coaching and counseling for chronic conditions.” Henderson explains that the Foundry is a dangerous place and the labor, very manual. The company makes cast

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iron soil pipe and fittings for the plumbing industry. There is significant physical demand. There are occupational nurses who focus on safety departments. Carolinas Corporate Health & Wellness also offers employers an Employee Assistance Program, which covers an array of issues such as mental health counseling, financial concerns or transportation. “We have an excellent relationship with Carolinas HealthCare System; they are a great partner,’ says Henderson. Radiator Specialty also offers employees an on-site clinic staffed by Carolinas Corporate Health & Wellness which attends to a variety of problems such as earaches, sore throats and prescription refills. “We don’t rush employees through. And we help them avoid the costs of taking off work to go to the doctor,” says Ronald Weiner, vice president of human resources of the Indian Trail company that batches and ships formulas of cleaners, degreasers, lubricants and functional fluids. Like many companies, Radiator Specialty is focusing more and more on wellness issues and the management of chronic disease such as hypertension, according to Weiner. Treatment is good; prevention is better When Premier Healthcare Alliance began

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offering biometric screening to their employees, some were very surprised by the outcomes. Most of those took immediate action, according to Allison Golding, senior director, Total Rewards. This is exactly the response companies and Carolinas Corporate Health & Wellness hope for. “We’re working with employees who don’t take care of themselves as well as they should,” says Deborah Jolly, director of human resources for the City of Shelby, speaking of the City’s 77 percent male-majority staff. “Like everybody, our health insurance claims are up and we are trying to reduce them to keep our insurance premiums under control.” The City utilizes Carolinas Corporate Health & Wellness’ services and, more recently, on-site health coaching. Each year, baseline screening is done for employees which includes measures for blood pressure, blood glucose levels, cholesterol and triglycerides, weight and waist circumference. Employees are then broken out by the number of health risks identified and scheduled for appropriate coaching. “Prevention is key,” says Jolly. “Just one or two employees experiencing major hospitalizations would make a huge impact on premiums.” During Radiator Specialty’s health fair this past June, 140 associates were screened. Nineteen of them were referred for specific action follow-up, according to Weiner. Two out of 78 had indications of peripheral vascular disease; out of 100 screened for blood pressure, 44 were above normal. Of the 45 screened for blood sugar, one was above normal range, and that one, and three others were referred to a primary care physician or diabetes center. “There is no dispute that wellness efforts comprise the most constructive investment we can make to curb the cost of health care,” stresses Weiner. “Each year we try to do something a little different,” says Ben Nice, GE Capital’s commercial marketing manager. “For this year’s health fair, we added mobile mammograms.” The company, whose staff is a call-center population, also focuses on ergonomics. Smoking cessation and weight management programs are givens for most corporate clients. Charlotte Pipe and Foundry’s Henderson reports that an employee was successfully treated for prostate cancer after a health fair PSA test returned positive. “There have been people who have been on the verge of a stroke. We were able to ward those off plus the nurses have gotten numerous

“We use Carolinas Healthcare because they care about our employees. If the employee feels that they are taken care of, they want to return to work.” ~Louis Caraballo Manager, Risk Management & EHS Services Time Warner Cable

people to be compliant with their medications for blood pressure and cholesterol.” “You would be surprised how many employees do not have a primary care physician,” says Hayden. “Health insurance is there, but it’s not convenient,” she continues, citing scheduling and waiting for appointments as deterrents to regular doctor visits. “We’re taking it to them through on-site physician scheduling services.” Tony Austin, production supervisor with McLean Power, likes to tell his story to encourage others. He knows firsthand how participating in an employee health program can be life-saving. “I started work at McLean Power wearing size 56 pants; my belt was 74 inches long.” Carolinas’ Nurse Practitioner Heather Shiflett helped him realize the risk he was in. “She told me things my family doctor hadn’t told me—about the fat build-up in my liver. She recommended the low-carb/high protein diet and plenty of water.” Austin went on to become the winner of the company’s Biggest Loser Contest, slimming down to a size 36 pants and losing 65

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pounds. Then, with a 90 percent blockage in his right coronary artery, he had a heart attack. “My doctor said that if I had still been carrying the weight, I would not have made it.” Austin has now lost a total of 160 pounds. Now, life is easier, according to Austin. “When it’s hot, I don’t get out of breath. My abilities have increased and that is reflected in my job.” Participation in wellness services can have a favorable impact on an individual’s healthcare costs as well, due to company incentives. The City of Shelby offers a $360 discount on health insurance for employees who go through screening and follow up with health coaching. Charlotte Pipe and Foundry uses a results-based incentive program. Employees can save up to $800 per year in healthcare premiums. “At the end of the day, employees understand that we’re all in this together and with the rising cost of healthcare, about the only thing we can do is have people accountable for their health,” says Henderson. Return on investment for a company is difficult to calculate. “I can’t prove the heart attack that did not happen,” says Weiner. One or two bad claims will drive higher premiums, but that doesn’t mean you didn’t have a successful wellness program.” Jolly agrees, “I like to think it will eventually allow us to break even on the cost. In the beginning, cost may actually increase because of problems being identified and treated, but we’ll have healthier employees and our employers are the most important of what we’ve got.” biz Zenda Douglas is a Charlotte-based freelance writer.

Carolinas HealthCare System (CHS) Carolinas Corporate Health & Wellness P. O. Box 32861 Charlotte, N.C. 28232 Phone: 704-446-8400 Principal: Betsy Hayden, Director Established: 1996 Employees: Administrative and support staff, health educators, RNs, sales associates and physician Clients: Close to 2,000 Business: Provides one point of contact for employers to access the full range of services available through CHS for solutions to their healthcare needs; services include occupational medicine, health fairs, wellness programs, and on-site medical clinics encouraging employee health, morale and well-being with proven profitability gains to employers. www.carolinashealthcare.org

august 2011

The hotel offers both business and leisure travelers a cuttingedge and contemporary retreat for short or lengthy stays coupled with intuitive value-added amenities, a smart fashionforward design, and unsurpassed service.

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by carol gifford

[bizprofile]

Hotel Sierra Charlotte Center City Becomes a Hyatt Boutique CHARLOTTE, N.C. (July 14, 2011) – Hyatt Hotels Corp., with its eye on expanding its select-service properties, has acquired a portfolio of assets from LodgeWorks, L.P. The $802 million cash acquisition includes Hotel Sierra Charlotte Center City, which will join the Hyatt Summerfield Suites portfolio.

he newest jewel in the Charlotte skyline is an upscale, boutique hotel situated on prime real estate in a culturally advantaged city and vibrant marketplace. Adjacent to the Time Warner Cable Arena, it’s so close that sitting outside on the seventh-floor terrace you can almost touch the side of the arena. And if windows were located on that section of the Arena, you could see inside them. Its outside terrace is a balcony to the city’s towering offices. “Our location is a great selling point,” says Charlotte’s Hotel Sierra General Manager Don Lockhart. “Hotel Sierra Charlotte Center City is in the right location, a great spot for people doing business or attending events uptown. We’re close to the home of the Bobcats, the Panthers’ stadium, the EpiCentre, NASCAR Hall of Fame, NC Music Factory, Blumenthal Performing Arts Center, Concord Mills, the airport, and lots of businesses.” And a great selling point it was, too, when Hyatt Hotels Corp. recently announced its acquisition of Hotel Sierra Charlotte Center City as part of a portfolio of assets from LodgeWorks, L.P. Described as a “key asset” in a strategic, high barrier-to-entry market, the Hotel Sierra Charlotte Center City is scheduled to be rebranded as a Hyatt boutique in the fall. “This is a significant expansion of our presence in the United States and enhances our extended stay representation with a great collection of high quality hotels,” states Mark S. Hoplamazian, president and CEO of Hyatt Hotels Corp. Indeed, the Hotel Sierra collection exemplifies the elite in extended stay and suite hotels. It ushers in a dynamic new hospitality brand, offering special touches of luxury and fresh design that allow the modern traveler to live their life while away from home. And Charlotte’s Hotel Sierra certainly looks the part. Only a few months open, its décor looks right out of the pages of a glossy architectural magazine, offering a palette of warm grays creatively paired with crisp ebony and alabaster accents, splashes of rich eggplant, apple green and hints of burnt orange, providing a complementary and welcoming ➤ contrast to its modern and interactive space.

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The hotel has an arresting urban and urbane design coupled with sleek social spaces, including the city’s only Rooftop Terrace replete with refreshing lounge pool, crackling fireplace and conversational seating. The Timing is Right “Hotel Sierra Charlotte Center City has taken travel to the next level and is poised to become the destination among travelers headed to the region,” affirms Lockhart. “It was our parent company, LodgeWorks, which was a trailblazer of the suite hotel concept starting with the origination of Residence Inn in the early ’80s to its recent launch of AVIA Hotels boutique collection. So it only seems natural that they would be on the cutting edge of the hospitality evolution.” The new hotel was undertaken as a joint venture between Lodgeworks, Hotel Sierra’s parent company, and the city of Charlotte. The area is zoned mixed usage, says Lockhart, which allowed for development of either condominiums or a hotel on the site. “Our company decided it was a good time to build here because Charlotte is still a growing market,” he explains, noting that the company carefully picks its sites, choosing to build the right product in the right market. “The economic downturn made it a better opportunity for development right now,” says Lockhart. “Construction costs were down, making it more profitable.” It was also a good time to open up—just in time for the upswing in the region’s hotel industry occupancy rate, which soared to 66.1 percent in May, the highest rate in three years, according to the Charlotte Regional Visitors Authority (CRVA). Released figures show the Charlotte area’s occupancy rate for the first five months of the year at 61 percent, compared with 58 percent in peer cities, and the revenue per room in Charlotte at $51, compared with $53 in peer cities. There were 664,309 hotel rooms sold in May in the Charlotte region, the most since October 2007, according to the CRVA, building on the upswing that began in the winter and spring of 2010. With an average occupancy per month of greater than 50 percent and continued growth of five percent each month since its March opening, the Hotel Sierra is part of that upswing and growing as expected, says Lockhart. The hotel started building its customer base early on, offering online specials to introduce its new concept lodging. Monthly reports on occupancy and average daily rate found 65 percent of its business guests already belong to a travel rewards program and still choose Hotel Sierra, and 35 percent of its leisure travelers book their accommodations through an online service. Hotel Sierra seeks to blur the lines between life

Don Lockhart General Manager Hotel Sierra

The 163 sophisticated guestrooms, studios and one-bedroom suites look as if they’ve been plucked from the pages of some glossy architectural magazine with thoughtful floor plans that are more lifestyle-oriented. at home and life on the road, offering guests larger rooms and more amenities and service to help them feel more comfortable and “at home” during their stay, says Lockhart. The hotel is a contemporary brand in select locations—Charlotte’s being the 15th Hotel Sierra—offering a holistic lifestyle experience integrated with design and fashion, says Lockhart. Each Hotel Sierra is decorated and furnished to fit its location; the Charlotte modern décor in ebony, charcoal and eggplant colors is muted, but distinctive. Dynamic New Hospitality Brand Lockhart describes the Hotel Sierra brand as offering select amenities that effortlessly bridge the gap between domesticated pleasures with that of life on the open road. Charlotte’s 17-floor hotel’s amenities include larger 400-square-foot rooms and stainless steel kitchens with granite countertops and full-size refrigerators for extended stays. Kitchens in the rooms are fully-stocked with dishes and utensils and include a stove, microwave and dishwasher. Bathrooms have walk-in showers with frosted glass doors, and rooms include a 42-in. flat-screen TV.

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“Each room has full windows offering a stunning nighttime view,” says Lockhart. “Rooms are furnished with larger-size California king beds.” This accommodation allows the hotel to comfortably host visiting NBA teams. Athletes, celebrities or other VIPs might choose to stay in one of the three specialty suites, with 12-foot ceilings, wet bars, 55-in. flat-screen televisions and outdoor balconies. A complimentary bistro-style breakfast— anchored by a made-to-order omelet station along with hot biscuits, eggs, sausage, bacon, potatoes, French toast, fresh fruit, and basic items like bagels, muffins and beverages—and a deluxe fitness center help guests maintain a healthy regimen. Free Wi-Fi, flat-screen televisions with expanded cable, a fully-equipped business center, and the weekday edition of USA Today help guests stay connected. Unexpected indulgences include clock radios with iPod docking stations to keep personal playlists on cue, waffle terry robes for those who have a hankering to lounge a bit longer, Starbucks-brewed coffee, guest valet, laundry and dry cleaning service plus a 24-hour onsite market. Local artwork from Charlotte is displayed in individual guest rooms, in hallways, in the lounge and in meeting spaces. Paintings with brightly-colored accents stand out against the dark background. The H lounge on the first floor serves as a full-scale restaurant, sports bar and breakfast area. The 2,200 square feet of meeting space includes the seventh-floor terrace with an outdoor pool and inside rooms splashed with accent purple sofas, bright artwork and accessories, and large floor-toceiling windows framing the Charlotte skyline. “It’s so refreshing to see a modern décor that’s upscale and chic,” says Hannah Roth, one of the hotel’s first customers with her wedding reception. “Some of the older, more typical choices have that ‘hotel look’ with dingy carpet. The Hotel Sierra in Charlotte is new. It offers reasonable prices and has a staff that greets you with warm, welcoming, Southern hospitality.” She and her husband wanted a downtown venue for their reception. Their 90-guest wedding party stayed at the hotel, and their reception was held on the seventh-floor flowing from the outdoor terrace with the swimming pool covered by an acrylic dance floor and an outdoor bar, to the indoor tables and food stations with fresh crab cakes cooked to order and a stir-fry station, all done by the hotel’s chef and “absolutely amazing.” “We live in NoDa, so we’re kind of

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downtown already,” says Roth. “The location was great for what I envisioned for my wedding and for my guests. Being so close to the EpiCentre and other restaurants, bars and museums gave them a lot of options for things to do without having to drive anywhere.

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“We really wanted the downtown feel with the city lights from the Bank of America tower and the lights from the pool shining through the cover,” says Roth. A Guest-Driven Experience Hotel Sierra places an incredible emphasis on unsurpassable service. The professional staff are proven leaders in their fields skilled at anticipating guests’ needs at every junction. The corporate playbook has been abandoned empowering each staff member to make decisions based on real-time circumstance rather than governed by a remote board of directors or big box bureaucracy. Customer service is, as they say, a “guest-driven experience.” Yvette Borrack is a regional sales manager with a Tampa-based company that has a sales office in uptown Charlotte with a need to hold meetings ➤ and house business visitors.

Canon Business Solutions, offering award-winning equipment and support, has expanded our operations in the Charlotte area. Call us today to find out how our unique business analysis can substantially reduce your overall costs!

Multifunction Copiers Production Systems Wide Format Printers HP Printers Document Management Supplies and Media

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august 2011

The simplistic, yet soothing palette of warm grays are creatively paired with crisp ebony and alabaster accents, splashes of rich eggplant, apple green and hints of burnt orange, which provide a complementary and welcoming contrast to the hotel’s modern and interactive space.

Borrack first stayed at the Hotel Sierra Charlotte Center City in June when she chose it “because our meeting was last-minute and it was the only hotel in the uptown area that could accommodate our team.” One meeting sealed the deal. “Our entire team was so impressed that we negotiated a group rate with the hotel so that we could make it our destination hotel whenever anyone from our team travels to Charlotte,” she says. “Everyone on the staff seems genuinely concerned about your satisfaction with your stay,” Borrack continues. “When I checked in at the front

desk, the attendant noted that I was going to be there for three nights and upgraded me since I was a multi-day guest.” When she met Don Lockhart on the elevator, Borrack says he greeted her spontaneously with, “Good morning. How did you sleep? Are we exceeding your expectations?” “We are very proud of our hotels and our teams,” says LodgeWorks founder, chairman and CEO Rolf E. Ruhfus of the newly refreshed collection Hotel Sierra (formerly Sierra Suites Hotel), emphasizing their selective blend of unexpected details and pampering with authentic, comfortable lifestyle elements.

SPECIALISTS IN VOICE NETWORKS FOR 32 YEARS.

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“It is exciting to build a portfolio that brings value to our investors and teams and now to an industry-leading Hyatt. We respect the Hyatt heritage and culture and are very pleased to contribute to its growth,” continues Ruhfus. Indeed, Hyatt seems to have procured a remarkable asset in Hotel Sierra Charlotte Center City, as posited by one market analyst, “By expanding its reach domestically in the extended-stay category, we see positive longerterm implications as Hyatt looks to capture loyalty of emerging market travelers who would otherwise not be an addressable customer for its luxury and upper-upscale brands.”

As for the rest of us, and certainly for Hyatt Hotels, Charlotte’s Hotel Sierra sparkles like a jewel in the Queen City’s crown. biz Carol Gifford is a Charlotte-based freelance writer.

Hotel Sierra Charlotte Center City/Hyatt 435 E.Trade Street Charlotte, N.C. 28202 Phone: 704-373-9700 *Parent: LodgeWorks, L.P.; as of July 14, 2011, Hyatt Hotels Corp. has announced its acquisition of the Hotel Sierra Charlotte Center City from LodgeWorks, L.P. Principals: Rolf Ruhfus, LodgeWorks CEO; Tony Isaac, LodgeWorks President; Don Lockhart, Hotel General Manager Employees: 41 Established: March 4, 2011 Amenities: 17 floors offering 163 suite living and 30 standard-size guest rooms; suites with fully-stocked stainless steel kitchens, large flat-screen TVs, larger California king-sized beds, walk-in showers with frosted glass doors, and a seventhfloor terrace pool with an outdoor patio area—including a fire pit—available for receptions and events. Business: Upscale, boutique hotel in a prime location in center city Charlotte seeking to be the preferred brand among extended stay guests. www.hotel-sierra.com

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THE EMPLOYERS ASSOCIATION

The Employers Association

Trusted HR Advice, Tools & Training

[employersbiz]

Legislative and Regulatory Highlights for Area Employers

FOR NORTH CAROLINA

EMPLOYERS A new state law in North Carolina will require all cities, counties, and businesses with 25 or more employees to start using E-Verify. E-Verify is a free Internet-based system that compares information from an employee’s I-9 form to data from the Department of Homeland Security and Social Security Administration to confirm an employee’s eligibility to legally work in the United States. With this new law, North Carolina will join 16 other states (including South Carolina) that have some form of E-Verify requirements. Businesses with fewer than 25 employees, or those that employ seasonal workers who work fewer than 90 days in a year, will be exempt. The law will be phased in for different types and sizes of employers: ■ October 1, 2012—Employers with 500 or more employees ■ January 1, 2013—Employers with 100 or more, but less than 500 employees ■ July 1, 2013—Employers with 25 or more, but less than 100 employees

SOUTH CAROLINA GOVERNOR

Signs TOUGH IMMIGRATION LAW

South Carolina Governor Nikki Haley has signed into law legislation that gives police the power grant to check whether persons detained for other reasons are illegal immigrants. The new law requires South Carolina’s law enforcement officers to call federal immigration officials if someone is suspected of being in the country illegally. In addition, the law requires businesses to use the federal E-Verify system to determine whether job applicants are legal residents. Under the law, the South Carolina Department of Employment and Workforce

will give technical advice to private employers, along with electronic access to the E-Verify federal work authorization program’s website, in order to facilitate the employer’s registration and participation in the program. Even if the employee only works for an employer for three days, the employer would still be required to submit that employee’s name for verification; employers are not allowed to continue to employ individuals whose work authorization has not been verified. Violations of the law may result in the suspension or revocation of an employer’s business license. (CCH)

IRS INCREASES MILEAGE RATE TO 55.5 CENTS PER MILE The Internal Revenue Service has announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes. The rate has increased to 55.5 cents a mile for all business miles driven effective July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51-cent

rate in effect for the first six months of 2011. The new six-month rate for computing deductible medical or moving expenses will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. (CCH)

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NC WORKERS’ COMPENSATION REFORM BILL PASSED North Carolina HB 709, Protect and Put NC Back to Work, has been enacted into law, focusing on reform of the North Carolina workers’ compensation system. The Employers Coalition of North Carolina (ECNC) is a lobbying organization made up of members from TEA and our sister employers associations in Raleigh and Asheville. ECNC has been working on meaningful workers’ compensation reform for more than eight years. The goal has been to bring our state back in line with other neighboring states, as the N.C. cost per claim is 44% higher than the median of several other states. The legislation will result in significant changes that return the system closer to its original intent of providing compensation and medical benefits for injured employees, regardless of fault or cause, and in return, limit liability for employers. Here is a brief summary of the most significant changes. The bill: • Defines “suitable employment” to encourage getting employees to return to regular or modified work • Removes other roadblocks to help get employees back to work • Prevents claims by employees who commit fraud on prehire questionnaires • Revises the second opinion and doctor replacement processes with objective standards • Provides for real employer access to health care providers for needed information • Caps temporary total disability (TTD) at 500 weeks of wages (previously no cap) • Caps temporary partial disability (TPD) at 500 weeks (previously 300 weeks) • Increases burial benefits to $10K and death benefits to 500 weeks The bill also helps balance the makeup of the Industrial Commission and hopefully improve the consistency of their decisions. It modifies the Industrial Commission from six to seven members and limits them to two six-year terms each. They will be subject to gubernatorial appointments with legislative confirmation. Their rulemaking will also now be required to comply with the Administrative Procedures Act, like other state agencies.

Content contributed by The Employers Association, providing comprehensive human resources and training services to a membership of over 860 companies in the greater Charlotte region. For more information, contact Laura Hampton at 704522-8011 or visit www.employersassoc.com.

august 2011

Photo: Wayne Morris

(l to r) Kathryn Bufano President and Chief Merchandising Officer Jonathan K. Pollack Executive V.P. of Sales Promotion, Marketing and E-commerce Belk, Inc.

“We are committed to fulfilling our promise to our customer; delivering modern, Southern style,” Bufano says, “and giving her the fashion she desires and the value she deserves. Our branding journey is to please our loyal customer and to attract the thousands of new customers who are moving into our footprint. Our branding journey is all about embracing change.” ~Kathryn Bufano President and Chief Merchandising Officer

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by barbara fagan

[bizprofile]

style

iconic

southern

Belk Rebranding Emphasizes Heritage

he Belk name is iconic for southern style and firmly entrenched in the bedrock of Charlotte history. The department store business that bears the family name of its founder, William Henry Belk, opened in 1888 in Monroe, N.C., as The New York Racket, serving local farm families. Since that time, the philanthropy and public service of subsequent generations has yielded a mayor and many Charlotte institutions graced with the Belk name including, to name just a few, a freeway, a theatre and the School of Business at UNC Charlotte. But along with its rightful place in history, Belk is also very much a part of the present. From its modest beginnings as a leased store on the corner of Monroe’s Main and Morgan, to its present 304 stores in 16 southern states, Belk is currently the largest privately owned department store in the nation. And with the rebranding initiative they kicked off in October 2010, their first major rebranding since 1967, Belk’s focus is clearly set on the future. “It was time,” states Jon Pollack, executive vice president of sales promotion, marketing and e-commerce for Belk. “So many things had already changed or were in the process of changing. In response to our customers needs, we’d modernized our assortments, changed the way we buy and how we advertise, we’d updated stores—the way they look and feel— and made huge investments in IT and e-commerce. Everything had changed except our face to the world.” Embracing change is a theme for Belk and its importance is reflected in the first of its six core values: be encouraging of growth and change. In its 123 year history, Belk has evolved from a bargain store to a fashion retailer and successfully made the move from traditional downtown locations to suburban shopping malls; even partnering with a competitor to purchase land that became SouthPark, Charlotte’s first regional shopping mall, ➤ when developers had little interest in the project.

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Monitoring and managing change is also a core Belk merchandising practice. Every two and a half years, Belk’s research area commissions a comprehensive survey to assess key customer information. Data gathered in these efforts was a factor in prompting the rebranding. But changing the face of a company, especially in tough economic times, is risky. Rebranding lore has many tales of failure, some massive and memorable. If that isn’t enough to dissuade the faint of heart, rebranding is also expensive, often counted in the millions, if not tens of millions of dollars. A Purposeful Journey For Belk, Inc., the journey of a $70 million rebranding effort started simply enough. “It all began with a series of conversations,” explains President and Chief Merchandising Officer Kathy Bufano. Bufano joined Belk in 2008 as president of merchandising and marketing and was promoted to her present office in 2010. Prior to Belk, she was CEO of Vanity Shops and has held key positions in several well known retailers. During her tenure at Macy’s and Lord & Taylor, both companies underwent large mergers, and Bufano was at Sears during their acquisition of Land’s End. But Belk would be her first rebranding. She was surprisingly enthusiastic.

“The ability to accept and be a champion for change is a foundation block for success,” she explains. “The ability to embrace ‘the new’ is very important.” With this positive attitude, she and Pollack, a Belk veteran since 1985, started talking with Belk Chairman and CEO Tim Belk about updating the mission statement, core values and “face” of Belk in 2009. “The South has changed so much since 1967,” notes Pollack. “So many people have moved into our 16-state region. We needed to let them know who we are.” According to Bufano and Pollack, the Belk family has always had the courage to invest in the future. “Tim thought it was great from the beginning,”

the belk logo: a history Belk’s earliest logos were created by founder William Henry Belk who used a star design with each point indicating a store location and a slogan, “Carolinas’ largest distributors of reliable merchandise.” As the company grew, so did the number of points on the star and the slogan eventually changed to “The South’s largest distributors of reliable merchandise.” The company’s early decentralized organizational structure encompassed hundreds of separate corporations and operating units, many of which had double-names such as Matthews-Belk, Hudson-Belk, BelkTyler and Belk-Leggett. A variety of styles and designs were used for store signs, advertising and other branding elements which was sometimes confusing to customers. In 1967, Belk hired New York marketing firm Lippincott and Margulies to help it create a new brand identity featuring a “Big B” logo that would unify the company’s image and reflect its transition from older downtown stores to modern fashion-oriented stores in new malls and shopping centers throughout the South. Our newest logo, shown at the top of the page, was created for Belk by Ologie, a Columbus, Ohio-based branding firm.

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But Tim was insistent that it wasn’t just a physical change of logo. It had to be a philosophical change on every level; that every associate understood it and embraced it.” ~Kathryn Bufano President and Chief Merchandising Officer

remembers Pollack, adding that it was Tim Belk who suggested changing the logo. “But Tim was insistent that it not be a mere physical change of logo; it had to be a philosophical change on every level so that every associate understood it and embraced it.” The Belk logo has its own history, originating ➤ with a star design created by founder William

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august 2011

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Streiner ner

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consolidate into one entity, Belk, Inc. the go-ahead and as Bufano puts it, “We were Henry Belk with each point of the star indicating More changes followed with 13 operating off to the races.” A rebranding working commita store location. But the unique practice of growdivisions merging into four divisions in 1999, the tee formed in Augustmail, 2009, but themedia, process wasrelations ing the company by setting up partnerships with mail, social social media, a public a public relations launch of Belk’s e-commerce online shopping and anything but a race. campaign managers and opening new stores under both the campaign andand in-store in-store visuals. visuals. mail, social m NewNew exterior exterior logologo signs signs will will be be the opening of a state-of-the-art distribution center Belk name and the managers’ names led to a conunveiled unveiled simultaneously simultaneously with with fanfare fanfare in 2001. And in 2004, the transfer of leaderfusing assortment of stores. campaign a on store on store fronts fronts in Charlotte, in Charlotte, N.C.N.C. at at ship to the third generation of the Belk Hudson-Belk, Belk-Matthews, Belk-Tyler New ext SouthPark SouthPark Mall, Mall, Raleigh, Raleigh, N.C. N.C. at at giting aspects aspects ofand Belk’s of Belk’s cards, cards, associate associate handbook, handbook, orientation orientation programs, programs, online onlineJr., year-long year-long family; Thomas M. “Tim” Belk Belk-Leggett stores, all with different logo Crabtree Crabtree Valley Valley Mall; Mall; Birmingham, Birmingham, Ala. Ala. resources, resources, newsletters newsletters andand ViewView Magazine. Magazine. In October, In October, a a roduction introduction of aof new a new logologo andand unveiled sim “In rebranding,at ifThe aSummit new logo John R. “Johnny” Belk and H.W. styles and designs, dotted many Southern cities at The Summit andand Atlanta, Atlanta, Ga. Ga. at at newly-designed newly-designed BelkBelk charge charge cardcard will will be distributed be distributed to Elite to Elite esigned ned to reflect to reflect the the BelkBelk brand brand on store Phipps Phipps Place Place on Tuesday, on Tuesday, Oct.Oct. 12. 12. fron McKay sons of the late and towns. The adoption of the B” logo in gets a 60 percent acceptance, and“Big and Premier Premier customers, customers, and and a comprehensive aBelk, comprehensive advertising advertising marketplace. he marketplace. Approximately Approximately 60 stores 60 stores are are scheduled scheduled to have to have new new exterior exterior M Thomas M.Belk Belk and nephews the rebranding effort of 1967campaign sought to SouthPark campaign will unify will introduce introduce the the newnew Belk brand brand identity identity to the to the areiner, Streiner, vicevice president president of creative of creative you’ve done well. This logo got cards, associate handbook, orientation programs, online logologo signs signs installed installed thisthis fall and fall and newnew signs signs will will be installed be installed in in public public through through television, television, magazine, magazine, and and circulars circulars ads, ads, direct direct ustomers s customers in three in three segments segments — — of the late John M. Belk. the many partnerships under one logo as well as Crabtree Va all locations all locations by November by November 2011. 2011. 80 percent.” resources, newsletters and View Magazine. In October, a ndy. “We’re “We’re devoted devoted our tocompany’ our customers customers All of these developments reflecttothe s updated image for that era. The The new new image image advertising advertising campaign campaign will will roll roll out out in in at The Summ aditional onal styles styles andand we’ve we’ve responded responded ~Jonathan K. Pollack Belk charge cardThe will be distributed to Elite modern, The modern, rounded rounded style styleupdates factored together with Thenewly-designed partnership era of Belk The came a dramatic conjunction conjunction withwith the the BelkBelk Days Days event event Oct.Oct. 13–15. 13–15. petal Theto petal icon icon comes comes endy trendy looks. looks. However, However, whatwhat of theofletters the letters nod to nod the to the Executive V.P. of Sales Promotion, Phipps Plac fromfrom the fact theExchange that fact there that there to word: stores and merchandise “Our“Our television television adsads will will showcase showcase scenarios scenarios that that support support end in they 1998 when the Securities and and Premier customers, and a comprehensive advertising word: Fashionable. Fashionable. gh esearch research is that is that they would would shop shop are flowers are flowers in bloom in bloom all all The lower The lower casecase “b” and “b” and Marketing and E-commerce the the southern southern lifestyle lifestyle and and will will use use the the petal petal element element as an as an ripe for Approximately 60 stores are sched Commission approved Belk’s 7,358-page dhad more more modern modern assortments assortments andand year year in theinSouth the request South and is and a is a selection made the time tiltedtilted “e” express “e” express the the campaign will introduce the new Belk brand identity to the ve iconic iconic thread thread throughout,” throughout,” saidsaid Streiner. Streiner. “Print “Print adsads will will feature feature to nod the toword: the word: Southern. Southern. “friendly” “friendly” nature nature of theof the eodern modern has has been identified identified as the as rebranding. Tim Belk gave thatbeen all remaining 112the separatenod store corporations logo signs installed this fall and ne

What’s What’s InIn AA Brand? Brand? New New Logo Logo and and Visual Visual Identity Identity Reflect Reflect the the Essence Essence ofof Belk Belk A Brand? New Logo and Visual

flect the Essence of Belk

through television, magazine, and circulars ads, direct ping a modern a modern looklook for public our for our logologo aligns aligns bal strategy.” strategy.” mers aike personal a personal handshake handshake withwith ded r.grabs “It grabs customers’ customers’ attention, attention, The modern, rounded style The petal icon comes nd s and feelings feelings about about the the company company of the letters nod to the cognizable.” nizable.” from the fact that there word: Fashionable. p – ine Modern. – Modern. Southern. Southern. Style. Style. – is – in is bloom all The lower case “b” and are flowers the brand brand identity. identity. “This “This statement statement nd tilted “e” express the year in the South and is a ssion mission andand the the promise promise itto makes itthe makes “friendly” nature of the nod word: Southern. he einer. Streiner. “It’s“It’s our our company company mantra mantra brand’s personality. Shades Shades of blue of blue are used are used in the in icon the icon because because Belk Belk has built has built equity equity in thein the strive e to deliver to deliver on each on each day.”day.” gns the company the company fromfrom the competition. the competition. colorcolor over over the years the years and itand differentiates it differentiates will be woven be woven intointo all company all company The color The color blue blue also also supports supports Belk’sBelk’s “colorful” “colorful” personality. personality. The three The three shades shades such ral such as Belk’s as Belk’s letterhead, letterhead, business business of blue of blue on the onpetals the petals represent represent the multiple the multiple generations generations of Belk of Belk leadership. leadership. brand’s brand’s personality. personality.

t s Shades of blue are used in the icon because Belk has built equity in the color over the years and it differentiates the company from the competition. The color blue also supports Belk’s “colorful” personality. The three shades of blue on the petals represent the multiple generations of Belk leadership.

ness

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a new a new selection selection of models of models shotshot in locations in locations thatthat customers customers will will recognize recognize as as regional. TheThe campaign campaign alsoalso includes includes a a allregional. locations by November 2011. larger larger thanthan normal normal direct direct mailmail advertising advertising piece piece thatthat presents presents The new image advertising cam all the all the newnew branding branding changes changes at Belk, at Belk, highlights highlights the the merchanmerchandisedise brands brands we’re we’re most most proud proud of,with and of, and even even offers offers a few a few eve conjunction the Belk Days surprise surprise brands that that customers may may not not have have seen seen at Belk “Webrands didn’t rush“Our it,”customers Bufano says. “We knew it at Belk television ads will showca before.” before.” would be a very big undertaking. From Day One Streiner Streiner says says shesouthern she wants wants associates associates andand customers customers to be to be t the lifestyle and will use we“wowed” knewbywe to look. hire an outside “wowed” the bywanted the newnew look. “I want “I want them them toconsulting feel to feel like like it makes it makes iconic throughout,” said Stre agency. They gave a thread framework. WeI want had aour lotour of customer sense, sense, and and to be to excited beusexcited andand inspired. inspired. I want customer topeople relate to relate to the to the modern, modern, southern, southern, style style message message and and say say to to a new selection of models shot in l involved in the rebranding process.” herself, herself, ‘Yes, ‘Yes, that’s that’s what what I want I want to be.’” to be.’” A lot of people might be an understatement.

will recognize as regional. The cam

According to Bufano and Pollack, everyone larger than normal direct mail adve from Tim Belk and Johnny Belk (President and all the new branding changes at Be COO) to store sales associates played a part. brands we’re most proud of, a They reacheddise out for input from all 16 states, conducted a surprise third party brands survey of that 37,000customers cusma tomers, performed extensive focus group testing before.” and involved key vendors, even reaching out to Streiner says she wants associa partners in Asia for support. “wowed” thethey new look. “I want th Pollack tells the story by of how gathered management sense, from all stores meeting, broke and inspir and intoa be excited them into groups and asked to createsouthern, s to relate toeach thegroup modern, a mood board to reflect who Belk was. Each herself, ‘Yes, that’s what I want to b group was given a variety of images and words they could use so some difference in opinion was expected; expected but not realized. Surprisingly, the images and words chosen by the groups were

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Unified Communications In conjunction with modernizing their product, Belk also modernized their marketing. Ad changes preceded the logo launch. “We wanted to show customers the new modern, Southern style even before they knew what it was,” says Pollack. Ads now have a lifestyle photography feel with new backgrounds and models. Belk also changed their media mix, investing heavily in cable, network TV and Internet ads. remarkably consistent. In many cases, the identical words and pictures popped up on mood board after mood board. Feedback from a cross section of the company proved consistent as well. “The core values bubbled up from within the company,” says Pollack. “We were striving for authenticity. We weren’t making up what Belk should be.” All of this led to Belk’s new mission statement: “To satisfy the modern Southern lifestyle like no one else, so that our customers get the fashion they desire and the value they deserve.”

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Modern. Southern. Style. Logo and tagline changes were given equal, thoughtful consideration. “We went through lots of different logo designs and several taglines,” ➤ Pollack admits. “But when it came down to

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“Belk’s customer overwhelmingly views herself as modern. She’s a fashion customer, married, family-oriented and often works outside the home. She socializes regularly with friends and looks for occasions to bring her family together. She’s feminine, colorful and is the decision-maker for family purchases.” ~Jonathan K. Pollack Executive V.P. of Sales Promotion, Marketing and E-commerce

the final choices, we decided quickly.” Belk’s new rounded lowercase logo is a big departure from its curlicue predecessor, and the three petals in the new logo are not just a nod to the blooms of the South, but also reflect the three generations of the Belk family who’ve led the company. “In rebranding, if a new logo gets a 60 percent acceptance, you’ve done well. This logo got 80 percent,” Pollack says.

The right tagline was essential. “The words were chosen carefully,” notes Pollack. “We wanted to be clear about who we are.” Several taglines were considered before “Modern. Southern. Style.” evolved as the winner. The actual modernization of Belk began well before the rebranding. Pollack heads up Belk’s marketing research. “Belk’s customer overwhelmingly views herself as modern,” he says. “She’s a

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fashion customer, married, family-oriented and often works outside the home. She socializes regularly with friends and looks for occasions to bring her family together. She’s feminine, colorful and is the decision-maker for family purchases.” In order to better serve the modern customer, Belk had already updated merchandise categories of woman’s’ apparel, shoes, handbags and jewelry. Changes continue under the rebranding. Customers will find expanded and newly updated collections of Calvin Klein, Michael Kors and Anne Klein and the launch of two new private label brands: TheVia Neroli line of womens’ shoes and the ND Weekend line of womens’ sportswear. In conjunction with modernizing their

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product, Belk also modernized their marketing. Ad changes preceded the logo launch. “We wanted to show customers the new modern, Southern style even before they knew what it was,” says Pollack. Ads now have a lifestyle photography feel with new backgrounds and models. Belk also changed their media mix, investing heavily in cable, network TV and Internet ads. Use of social media was another major initiative. Belk can now be found on Facebook, YouTube and Twitter. “Our fashion director, Arlene Goldstein, sends tweets about what’s going on in fashion from buying trips in New York and runway shows in Europe,” explains Pollack. “Belk even has its own blog.” Even with all the changes, Belk made sure it never lost sight of its roots. “Southern” is part of its new tagline for a reason. “The South is a state of mind, not just a place,” explains Bufano, who while a Northerner, could easily be mistaken for a Southerner in her friendly, charming manner. “Many of the people working at headquarters are from the North and we comment on how our lifestyle has changed since we had the good fortune to move here.” “There’s a different feel to being in the South,” adds Pollack, “how we treat each other, how we greet each other, our connection to the outdoors, devotion to religion and family. It’s very event-oriented. Going to a college football game is different in the South.” When asked whether this regional focus limits them in other markets, Bufano shakes her head. “We’ve shipped to all 50 states,” she says. “Over 25 percent of our online business is outside of our 16-state footprint. I think the Southern lifestyle is attractive to other regions.” From the beginning of the rebranding effort, Belk was mindful that all this change might be disconcerting to their longtime customers. “We wanted to strike a good balance between attracting new customers while still keeping our loyal Belk customer happy. We didn’t want to alienate our traditional customer,” Bufano says. Belk handled this challenge in a unique way. “We spent as much time communicating internally with our associates as we did in planning the rebranding,” Pollack explains. “Our sales associates have a close relationship with our customers. The first person a customer will ask about the changes is the sales associate. The associates were involved in the rebranding, understood where Belk was going and why, and could answer their questions. “Loyal customers could also see that Belk was a ➤ vibrant, healthy enterprise that was investing

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in the future. That resonated with our customer.” So far, feedback on the rebranding has been positive from both the modern and traditional customer, Bufano reports. Fabric of the Community While Belk is a regional department store, that region is not necessarily homogeneous. “One of the strengths of Belk is that we’re adaptive to the communities we serve,” says Pollack. “Some companies may put the same merchandise in each store, but that’s not what we do. We give the customer what they want, not what we think they should have.” Bufano agrees, “We are in different neighborhoods with different demographics. We don’t do a cookie cutter approach.” She explains that Project Impact, a significant expansion in their planning department, goes even further to ensure that each store receives the proper merchandise for their demographic.

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A $150 million investment in their merchandising, planning and point of sale systems over the next three years, will give them even better tools, allowing them to better connect with their customers. But Belk’s emphasis on community doesn’t end at merchandise allocation. “One of our core values is to be involved in our communities,” says Bufano. “Our associates are brand ambassadors and we have grass roots events in each store’s community. Those connections to community didn’t change with the new logo. It’s part of our company DNA.” Belk stores host over 400 community appreciation days annually and proceeds from Belk Charity Days go directly to local charities. Belk associates also donate to causes such as the United

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Way, Classroom Central and the Good Neighbor Program. The Belk company donates millions to several causes, and The Belk Foundation, a private family foundation, has supported youth education since 1928. The less well-known stories, however, are the ones that best demonstrate Belk’s commitment to community.

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We spent as much time communicating internally with our associates as we did in planning the rebranding. Our sales associates have a close relationship with our customers. The first person a customer will ask about the changes is the sales associate. The associates were involved in the rebranding, understood where Belk was going and why, and could answer their questions.”

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august 2011

to account for every employee.” Tim Belk arrived within 48 hours and a Belk ‘Truck of Hope’ carrying clothes, diapers, pet food and other relief supplies was sent to Tuscaloosa within days. “We were there before FEMA,” he notes. The Unveiling Belk’s new logo was kept a secret until its official unveiling last October at a celebration dinner with over a thousand associates in the Charlotte Convention Center. Country music recording artist Kellie Pickler made a special appearance and in honor of one of her songs, she was awarded a pair of red high heels.

“There was so much excitement,” says Bufano, “but my favorite part was the Sentiment Wall.” Pollack explains how during the rebranding process all 22,000 associates were given cards and asked to write what they would do to support the brand change. The 22,000 cards were then turned into a gigantic and impressive rendition of the new logo. The Sentiment Wall now hangs in corporate as an iconic reminder of everyone’s contribution to the new Belk. Another big celebration is in the near future for Belk when the company celebrates its 125th anniversary in 2013. When asked about plans for that, Pollack smiles.

“It’s big,” is all he’ll say. In the meantime, Belk is looking forward to New Year’s Eve 2011 when they take over title sponsorship of what was The Meineke Car Care Bowl. The Belk Bowl is a new addition to their sports marketing campaign and a “great fit” with the rebranding campaign according to Tim Belk. So what is the verdict on the rebranding? All signs indicate it’s a success. Sales for fiscal 2012 are planned up 3.3 percent and Belk reports that they are currently exceeding the planned sales target by a significant margin. They also note growth in both total customers and in new Belk proprietary credit card customers. “We are committed to fulfilling our promise to our customer; delivering modern, Southern style,” Bufano says, “and giving her the fashion she desires and the value she deserves. Our branding journey is to please our loyal customer and to attract the thousands of new customers who are moving into our footprint. Our branding journey is all about embracing change.” “But I’m not sure

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But I’m not sure the job is ever finished. Rebranding is ongoing. We listen to the customer and the customer is always telling us something else they’d like. Belk has a philosophy of changing before we have to and that’s what’s always kept us ahead.” ~Jonathan K. Pollack Executive V.P. of Sales Promotion, Marketing and E-commerce

the job is ever finished,” Pollack says with a smile. “Rebranding is ongoing. We listen to the customer and the customer is always telling us something else they’d like. Belk has a philosophy of changing before we have to and that’s what’s always kept us ahead.” biz Barbara Fagan is a Charlotte-based freelance writer.

Belk, Inc. 2801 West Tyvola Road Charlotte, N.C. 28217 Phone: 704-357-1000 Principals: Thomas M. (Tim) Belk Jr., Chairman and CEO; John R. (Johnny) Belk, President and COO; H.W. McKay Belk,Vice Chairman; Kathryn Bufano, President and Chief Merchandising Officer; Brian T. Marley, Exec.V.P. and CFO; and Jon Pollack, Exec.V.P. of Sales Promotion, Marketing and E-commerce Employees: 1,505 in Charlotte; 24,000 associates in stores, corporate and division offices and distribution centers In Business: Founded in 1888 by William Henry Belk and Dr. John M. Belk; incorporated in 1891 as Belk Brothers Company; second generation leadership by the late Thomas M. Belk and John Belk (sons of founder William Henry Belk) among other family members; in 1998, Belk, Inc. is formed from 112 existing Belk companies Locations: Headquarters in Charlotte, N.C.; 304 fashion department stores in 16 contiguous Southern states Revenues: $3.5 billion (FY ended Jan. 29, 2011) Business: Nation’s largest privately owned mainline department store company, under its third generation of family leadership, seeking to provide superior service and merchandise that meets customers’ needs for fashion, value and quality. www.belk.com

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august 2011

[bizprofile]

by heather head

“the big green K” A

fter decades of freedom, the United States is once again being subjugated by a tiny, ancient parasite that pierces our skin and feeds on our blood while we sleep. Denizen of bedtime rhymes, the bed bug, is back. And it’s no wonder the pest is spreading. Each female is capable of producing 500 offspring in her lifetime, each of which reaches breeding age in just over a month’s time. The tiny, flat, red insects hide out in folds of fabric, furniture joints, and tiny depressions, and they rom ed ugs to can live as long as seven months without a meal. But this time around, the bed bug has awn aintenance Killingsworth Environmental to contend with. illingsworth Owners Mike and Debbie Rogers have built a brand around providing the most effective and innovative pest nvironmental ffers control and home care solutions available—solutions that utstanding ervice often follow unconventional, but remarkably successful paths. While not so good news for its customers, bed bugs have been a significant boon to Killingsworth Environmental’s business.

F L

E O

B M

Bed Bug Solution Begins with Dog Mike explains: “If you and I go into a bakery, we smell bread. When the dog goes into the bakery, the dog smells milk, eggs, flour, sugar, yeast, and the perfume that the baker is wearing. You can train the dog to alert on any one of those smells, because he can separate it all out. Likewise, dogs can sniff out explosives, drugs, smoke—and the chemical pheromones insects use to communicate.” The Florida Canine Academy rescues dogs from pounds and humane societies, and puts those exquisite sniffers to work alerting for bed bugs. Once fully trained, each detection dog sells for about $10,000 and must be matched with a dedicated, full-time handler who flies to Florida to train with the dog. Mike laughs when he talks about making the decision to invest in their first dog, Mr. K: “We were at a convention and I walked up to Debbie and said, ‘I’m fixing to spend $10,000 on a dog.’ She said, ‘You’ve got to be out of your mind.’” ➤

➤

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Debbra E. Rogers Vice President Michael A. Rogers President Killingsworth Environmental of the Carolinas, LLC

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So they moved north and opened an office out of their laundry room, where a cranky dryer provided heat in the winter. The branch had no customers to begin with, and Mike says that’s where his marketing and advertising background came in. They talked to family, friends, beat on doors, made phone calls, and purchased advertising. Mike approached builders offering to pre-treat their houses and put termite warranties on them. Before long, the branch moved into a real office (with heat) and began hiring employees. Fourteen years later, Killingsworth was a well-known brand in Charlotte and the Rogers wanted to call it their own. So in 1993, they purchased the North and South Carolina offices. Now their company boasts 10 branch offices, 100 employees, 80 vehicles, and a listing among Pest Control Technology magazine’s Top 100 companies based on gross revenue. But Mr. K paid for himself in nine business days. The company now owns four detection dogs, and they stay busy all the time. “Ordinarily, finding the bedbugs is the hard part,” explains Debbie. “But with the dogs, you don’t have to go in and destroy somebody’s home to try to find the problem. You take the dog in, and they’re going to sniff it out.” The value of this becomes especially apparent when applied in a hotel setting. Debbie mentions a prominent Asheville hotel where the dogs recently found bed bugs in three rooms. Once identified, the hotel can treat only those rooms rather than the entire establishment. Treatment, too, has been traditionally difficult. Throughout history, bedding fashions have evolved to stay a step ahead of bed bugs. Homesteaders preferred straw ticks that could be tossed on a fire and burned when the bed bugs became intolerable. Iron bed steads became popular in part because they provide fewer hiding places than wood. But because more than a dozen bed bugs can hide in a space as small as the head of a screw, physical methods of removal are partial at best. The advent of modern pesticides helped briefly, leading to the virtual eradication of bed bugs in the U.S. in 1940. But between chemical resistance among insects and the fact that many chemicals used to control them have since been banned in the U.S., bed bugs made their return about three years ago. So the Rogers sought out and implemented a treatment regimen that is quick, non-toxic, and avoids the potential for pest resistance: Heat. Bed bugs and eggs die at 115 degrees, so Killingsworth employs a system that heats a room to 130 degrees Fahrenheit and maintains it for several hours. Once the treatment is complete, a dog returns to the room and tests to ensure it’s clear. Once completely cleaned up, the hotel can claim “Mr. K Certified” status.

“If you and I go into a bakery, we smell bread. When the dog goes into the bakery, the dog smells milk, eggs, flour, sugar, yeast, and the perfume that the baker is wearing. You can train the dog to alert on any one of those smells, because he can separate it all out. Likewise, dogs can sniff out explosives, drugs, smoke— and the chemical pheromones insects use to communicate.” ~Mike Rogers President

Bug-Busting Outside the Box Debbie credits Mike with a strong propensity for thinking outside the box. “A lot of times he’ll come up with things and we’ll just look at him and say, ‘What in the world made you think of that?” she laughs. “But he’ll do his research, and we’ll sit down with a plan, and it always works.” That skill comes in handy in pest control, where the challenges are constantly changing as pests and home technologies evolve. For instance, a few years ago Mike uncovered a unique method for treating mold in crawl spaces. He had found out that when you blow frozen CO2 pellets into wood, it knocks the mold out while simultaneously killing it. Nobody in Charlotte was offering the service, so ➤

Crawling to Success Although Mr. K’s picture is quickly becoming a recognized icon around Charlotte, bed bugs and sniffing dogs are a relatively new offering in the company’s diverse repertoire. From termites and roaches, to mold remediation and lawn care, Killingsworth offers a panoply of homeowner services in convenient packages. Unlike many similar local services, the company’s leadership hasn’t always been in pest control. For years, Mike sold yellow pages ads for Bellsouth in Pensacola, Florida, honing his marketing and salesmanship skills, and developing relationships with business owners. By 1993, he had developed a close working relationship with his largest advertiser, Killingsworth Pest Control. At the time, he and Debbie both had family in Charlotte and were eager to move here. So they took an idea to Killingsworth’s owner: Why not open a Killingsworth branch in Charlotte and let them run it?

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Killingsworth purchased a CO2 blaster, and keeps it cleaning out crawl spaces. Thinking outside the box also comes in handy in a recession. When the home building industry fell through the floor, Killingsworth suffered a blow from the loss of that market. But where many companies responded to the recession by cutting sales staff and simply tightening their belts, Killingsworth also took a variety of unconventional measures. Mike says they looked at the business and saw that there were some staffing changes that could be made, letting go of bottom performers and duplicate job descriptions. But he also saw that the best way to survive and thrive in the new economy was by thinking outside the box. So they increased marketing and sales expenditures, and built up their sales staff. They added new lines of service, such as lawn care and mold remediation, and trained the staff to cross-sell. Then they instituted a key change that cascaded into a laundry list of benefits: They assigned technicians and sales people to branch offices and required them to work leads and jobs only inside their own area. The change led to significant savings in fuel, time, and fleet maintenance. But it also increased sales. Sales people began to get to know their area, becoming friends with customers and leads. They also got to know their own technicians well and began working off of leads generated by the technicians.

“We have a certified entomologist on staff. She continually trains our technicians, inside customer service reps, everybody in the company. Everyone is trained so that whoever you talk to in the company, you can always get answers to your questions.” ~Debbie Rogers Vice President

As a result, Killingsworth has, as Debbie puts it, “simply not participated in the recession.” The company has posted growth every year of the recession, including a 19 percent gain last year. Infested with Customer Service Another way that Killingsworth sets itself apart is in how they handle maintenance service visits. Mike says that most companies do quarterly

“We have a culture in our company of world-class customer service. And we don’t accept anything less. If you can’t buy into that, you have no chance of surviving here.” ~Mike Rogers President

check-ups where the technician comes to the site, does his work, and leaves a note on the customer’s door. At Killingsworth, scheduled check-ups occur only once a year. But at each check-up, the technician meets with the customer and spends a full hour and a half at the site, answering questions, performing inspections, caulking gaps where insects might enter, performing maintenance treatments, and assuring the customer that they can call Killingsworth any time for follow-up or to address specific concerns. The approach is part of Killingsworth’s customer service ethic: “We have a culture in our company of world-class customer service,” says Mike. “And we don’t accept anything less. If you can’t buy into that, you have no chance of surviving here.” The service begins with the receptionist who is helpful and friendly, and extends to the knowledge training that every employee participates in at every level. “We have a certified entomologist on staff,” Debbie explains. “She continually trains our technicians, inside customer service reps, everybody in the company. Everyone is trained so that whoever you talk to in the company, you can always get answers to your questions.” Furthermore, every vehicle is expected to always be immaculately clean, and technicians to arrive on time without exception. Mike says the

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recession has made this aspect of the job easier, because they are able to hire people who buy into that ethic and stick with it. This customer service approach has made it easier for Killingsworth to retain customers in a down economy. Debbie explains that when people are looking for ways to trim their budgets, it’s easy to fire a company that leaves a note on your door once a quarter. It’s a lot harder to let go of a relationship with a technician who knows your kids and dogs, who spends time with you, and who has been taking care of your home for several years. Furthermore, that personal touch is perhaps the company’s greatest sales tool. In page after page of customer testimonials, customers mention their technicians by name, and thank the company for their help. For example: “I just want to commend Fred and his partner for an excellent job. They were friendly and informative… and left the crawlspace cleaner than some of the homes I’ve been in! I will be your number one PR guy in this neighborhood.” Mike and Debbie expect their company to continue growing steadily and sustainably. In the next five years, they hope to open two new branches and add more detection dogs to the staff. They also want to expand their already diverse portfolio of services to include water damage restoration, carpet cleaning, and possibly other services as they identify needs. With a diverse customer base including companies like Dale Earnhardt Inc., numerous hotels, and individual households throughout the Carolinas, the company is poised to come out of the recession stronger than ever. Good news, Charlotte. Bad news, bed bugs! biz Heather Head is a Charlotte-based freelance writer.

Killingsworth Environmental of the Carolinas, LLC 206 Park Road East Indian Trail, N.C. 28079 Phone: 877-281-0006; 800-391-3071 Principals: Michael A. Rogers, President; Debbra E. Rogers,Vice President In Business: 18 years Branches: 10 in North and South Carolina serving Charlotte, Wilson, Raleigh and the surrounding areas Gross Revenue: $10 million Employees: 100 Customers: Over 40,000 Business: Property maintenance services: termite and pest control, mold remediation, and lawn care. www.thebiggreenk.com Termite - Pest - Mold - Lawn

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Gartner Research has revealed that 10 to 15% of company revenue is invested in the production, management and distribution of documents; 1% to 3% is related to printing and copying. Experience has shown that you can achieve cost savings of up to 36% in document production.

Mark Gasior President Simile Imaging Solutions, Inc.

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by casey jacobus

[bizprofile]

“It’s really not that

complicated!” Simile Imaging Solutions Offers Smart Choices and Simple Solutions

hen Mark Gasior started Simile Imaging Solutions in 2002, he had accumulated 15 years of experience working for Kyocera Corporation, a Fortune 500 company, in their Document Solutions Group. As regional area manager for Kyocera, he handled the mid-Atlantic territory, developing the dealer network throughout the Southeast. “I truly loved my position with Kyocera and the successes that came with my job,” says Gasior. “I got to travel the world.” But Gasior was also tired of spending 100 or more nights a year on the road and away from his growing family. Having worked closely with independent dealer owners, he decided to join forces with the company he had worked for, starting Simile Imaging Solutions Inc. as an exclusive provider of Kyocera office products and document solutions in the Charlotte area. “This is a capital-intense industry,” says Gasior. “Working for a big company, I was smart enough to take advantage of every opportunity to save money, so, after 15 years, I had the capital to invest in the business.” In addition to his own investments, Gasior secured a loan from Wachovia and, in April 2002, Simile Imaging Solutions opened its doors. Gasior chose the name “Simile” to distinguish his company from other office equipment companies, many of which had standard names like “Jones Office Products” or “Smith Copy Products.” “Simile was unique—one word and memorable,” explains Gasior. “It was also descriptive of our business. ‘Simile’ is a comparison using ‘like’ or ‘as’ just as a copy, scan, fax or print is ‘like’ or ‘as’ the original.” Gasior also designed his company’s logo carefully. He chose the color green because it represents being environmentally responsible and also stands for financial growth. “We love the pattern of the green and black dots,” says Gasior. “They seemed to be moving and, in our minds, represented energy and purpose, traits we encourage and promote throughout our company.” Simile Imaging Solutions began life in the midst of the recession that followed the 9/11 terrorist attacks. However, the company was able to survive and thrive despite the economic times by attracting the business of some Fortune 500 companies and several of Charlotte’s largest law firms, many of whom are still clients today. As Gasior attests, “We are successful because we are persistent, we stay focused, ➤ and we are committed to the marketplace.”

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yocera’s new advertising campaign acknowledges that we’re in a new world where people really have to watch what they’re doing in terms of controlling costs. Their spokesman—economist Peter Morici—is particularly credible to tout the financial benefits of owning a Kyocera. “As an economist, I frequently speak with business leaders,” Morici says at the onset of the spot. “And I’m shocked—no—outraged at how some companies manage their printing. No one tracking service costs. No idea how much they pay for supplies. No idea how much they can save.” By bringing in Kyocera, companies can manage their printing more efficiently and effectively. “It’s really not that complicated,” Morici concludes. In a second commercial, Morici explains that many

“Technology is a great place to be. Over the next 20 years, technology is going to continue to transform the way we do business.” ~Mark Gasior President

However, Simile Imaging Solutions has also thrived because of Gasior’s vision for the company and the leadership he provides. In addition to keeping abreast of the latest technology in a quickly growing industry, Gasior has led his team of employees by example. From the beginning to this day, he goes out in the field, on sales calls, meeting prospective clients and catching up with current customers. As a result, Simile Imaging Solutions’ revenues have increased every year by double digit figures.

Document and Customer Management With computers came the promise of a “paperless age,” but it hasn’t worked out that way. Instead of doing away with “hard copies,” computers seem to have increased the amount of paper we produce. Businesses today struggle with the large amounts of paper that circulate around an office, hand-routed, mailed, stored, and even lost. Some estimates put the amount of time businesses spend looking for documents as high as 50 percent and estimate that 7 to 10 percent of a company’s revenue is spent on manual document management. But with today’s multi-function devices, the paper crunch can be conquered. The standard office copier has been reborn as a networkcompatible scanner and a document distribution center that can transform the way critical business documents are shared, sent and stored. Using the latest in technology, hard copy documents can be converted to various digital formats and archived in a central repository. Flexible document indexing allows for easy retrieval of any document. Multiple employees in different locations are able to view the same document at the same time. Using copiers like Kyocera’s TASKalfa multifunctional products, businesses can save time and money by reducing the need for costly storage space, increasing productivity, and eliminating the loss and misfiling of hard copy documents. By scanning documents directly to email, they can reduce fax, overnight delivery, and document storage costs. And they can improve customer satisfaction by providing instant access to the client’s documents. Gasior points out that document management can also help in the area of regulatory compliance. The Health Insurance Portability and Accountability Act of 1996 and the Fair and Accurate Credit Transactions Act of 2005 require medical and financial organizations to keep confidential information private. “The largest part of compliance is related to record keeping,” explains Gasior. “While any

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companies buy inexpensive printers and then wind up paying more for services and supplies. “Bad fiscal policy,” he chides, explaining that the key is the total cost of ownership, so that when you look at the cost over five or 10 years, buyers can save dramatic money over a period of time with Kyocera. A good narrative for an economist!

office can benefit from document management, medical and financial firms can see an immediate return on their investment.” How can a small company, like Simile Imaging Solutions compete with the giants of the industry—the Xeroxs, the Ikons, the Canons or Ricohs? Gasior says the answer lies in flexibility; “A locally-owned company is more flexible and easier to deal with than the branch offices of national corporations. Decisions can be made quickly and problems can be resolved rapidly, without having to consult someone at national headquarters.” “A locally-owned company can react to a situation on the spot,” continues Gasior. “There is much less red tape for a locally-owned company, allowing for a wider range of options when a situation arises.” From its very beginning, Simile Imaging Solutions has been focused on customer service. Its mission is “to provide an exceptional customer experience through technology, ecology, and lasting personal relationships.” “Every day we practice and celebrate the lost art of ‘personal service’,” states Gasior. “We bend over backward to serve our customers. When you call us, a live person answers the phone— someone who will get your issues resolved immediately.” Simile Imaging Solutions employees talk about customer service every week in their staff meetings and Gasior meets with the service manager every Monday to review any service issues. “Our average response time is 2.3 hours,” says Gasior. “That’s got to be the best in Charlotte.” Duplicating Green Corporate environmental responsibility is a bedrock principle for Simile Imaging Solutions. The company is committed to reducing waste and the consumption of energy/natural resources. “We seek out products and services—ways of doing business, that are environmentally driven,” says Gasior. “We are always looking for ways to reduce waste.”

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Simile Imaging Solutions’ manufacturing partner, Kyocera, is an industry leader in environmental stewardship. Kyocera established an environmental charter in 1991 under which Kyocera commits to environmental preservation on a daily basis. Kyocera has received accreditation from numerous conservation organizations including the Green Seal in the U.S., Blue Angel in Europe, and the Ecomark in Japan. Simile Imaging Solutions has its own green initiatives. In addition to partnering with Waste Management to recycle all cardboard packaging, plastics, glass and aluminum, Simile Imaging Solutions recycles packaging materials and toner drums and uses bio-degradable packing material itself. It even strips down trade-ins of office machines to steel frames for recycling. Kyocera’s multifunctional products are Energy Star compliant. Energy Star products use less energy to perform regular tasks, and when not in use, automatically switch to lower-power modes. In fact, Kyocera products are IS 14001:2004 Certified. This voluntary certification, verified through an independent audit, acknowledges Kyocera for effective resource management and environmentally friendly practices. The newest office printers, like Kyocera’s award winning ECOSYS printers, are both environmentally friendly and highly economical. Traditional laser office printer cartridges contain 65 components, which are replaced each time the toner runs out. By making them permanent components, Kyocera greatly reduces the amount of waste generated by its printers, as well as cutting the cost of consumables. In addition to its commitment to environmental responsibility, Simile Imaging Solutions demonstrates a corporate responsibility to its Charlotte community. It supports a number of nonprofit organizations with donations and volunteer time. “Our employees live in the Charlotte community,” says Gasior. “We use its schools, attend its churches, exercise at its YMCA’s and shop in its stores. As soon as Simile Imaging Solutions was on its feet financially, we began giving back to the local community.” Among the organizations that have benefited from Simile Imaging Solutions’ contributions of time and money are Harris YMCA Community Outreach Program, Charlotte Catholic High School Foundation, Make-a-Wish Foundation, Susan G. Komen Race for the Cure, Liz Murray Scholarship Fund, CMS Student Athlete of the Month Scholarship Fund, Carolina Waterfowl Rescue, Charlotte Mecklenburg Police Foundation and Trout Unlimited. Trout Unlimited is Gasior’s pet organization. ➤ He has a passion for fly fishing and when

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august 2011

“A locally-owned company is more flexible and easier to deal with than the branch offices of national corporations. Decisions can be made quickly and problems can be resolved rapidly, without having to consult someone at national headquarters.” ~Mark Gasior President he’s not working or spending time with his family, he is most likely at his fishing club in the mountains. Scanning the Future Simile Imaging Solutions is now firmly entrenched in the Charlotte community. Gasior belongs to the Board of Advisors for the Charlotte Chamber of Commerce, the Association of Legal Administrators, the Hospitality Tourism Association, the Charlotte Regional Partnership, and the Hood Hargett Breakfast Club. In 2007 Simile Imaging Solutions partnered with The Pater Group, which is one of the nation’s largest independent dealers groups. With offices in Charlotte, Houston, Austin, Miami, Fort Lauderdale, and West Palm Beach, the Pater Group has over 150 employees and annual revenues of over $30 million. Having survived its first recession while still in its infancy, Simile Imaging Solutions was well positioned to survive and thrive again during the most recent economic downturn. In the height of this second and more serious recession, companies were not investing in new office technology. In other words, they were holding on to their current devices. “In 2008, five out of 10 deals were being turned down by the banks,” says Gasior. “We were able to provide some internal financing to help our clients over the hump, but it was a struggle.” That situation, according to Gasior has eased. The rate of credit acceptance is currently around

85 percent. That is just one indicator that the local economy is improving. Gasior says sales figures are way up, as customers who have been holding on to older equipment are now rushing to update their technology. “They are trading in older machines and replacing them with the latest multifunctional products,” says Gasior, who sees a bright future for the industry. Technology plays a big role in that future. New applications for the multi-function devices, which include printing and scanning from mobile devices, as well as new document management programs and more print services are making business lives easier and less costly and Gasior says there are more technological advances to come. “Color is more affordable than ever,” he asserts. “Eight out of 10 multifunctional devices placed are doing color at virtually the same price as black and white devices.” Greater security is also a hallmark of the future. The Kyocera Card Authentication Solution is a convenient security option for its multifunctional products. The security system utilizes employee ID badges. With a simple swipe of a badge, users gain immediate access to their Kyocera MFP, authorizing them to use features specific to their job function. With the card authentication solution installed, corporate network resources and information can be secured, preventing unauthorized access. The system also enables administrators to track usage for reporting and accounting purposes. “Technology is a great place to be,” says Gasior. “Over the next 20 years, technology is going to continue to transform the way we do business.” biz Casey Jacobus is a Charlotte-based freelance writer.

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Simile Imaging Solutions, Inc. 3400 International Airport Dr., Ste. 900 Charlotte, N.C. 28208 Phone: 704-423-0100 Principal: Mark Gasior, President Founded: 2002 Employees: 15 Business: Managed print services company offering affordable and highly reliable document imaging and management solutions; exclusive provider of Kyocera office products and document solutions in the greater Charlotte area. www.simileimaging.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

09 2011

SEPT

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.

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

Jerry Richardson Owner Carolina Panthers

Sept. 9, 2011

Accepting New Members

Oct. 14, 2011

Matt Eversmann Hero of Black Hawk Down and the Battle of Mogadishu

Nov. 11, 2011

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

“Prime-time is the best word that describes Hood Hargett Breakfast Club. It’s a networking and business development group that puts you at the right place, at the right time, every time. Run by quality leadership, the members of the group are all top quality people and businesses.” ~Daryl Larner, Larner’s Office Furniture Outlet

“The Hood Hargett Breakfast Club is the premier business development group in Charlotte. They helped me launch my business when I came to Charlotte and continue to help me grow it through access to and relationships with top Charlotte business leaders.” ~ Lou Amico, L.A. Management Company, LLC

“Hood Hargett Breakfast Club has been instrumental in developing new business relationships and strengthening existing ones. It is respected among business leaders and serves as a valuable resource for philanthropic initiatives throughout the community.” ~ Gary LaBrosse, LaBrosse/Byerley Group, Merrill Lynch

Call For More Information Call Jenn Snyder at 704-602-9529 • jenn@hoodhargett.com www.hoodhargettbreakfastclub.com

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