Sept 2014 ibaw magazine

Best Practices

Sales Roundtable

September 19th

September 8th

SEPTEMBER 2014

“Wisconsin’s Workforce: Agony or Ecstasy?

Jonathan Berry & Scott Jansen State of Wisconsin

INSIDE THIS ISSUE: KEATING: SMALL BUSINESS POLICY INDEX: RANKING THE STATES ON POLICY MEASURES AND COSTS IMPACTING SMALL BUSINESS AND ENTREPRENEURSHIP

EO D I V SEN. JOHNSON: THE BUDGET: IT’S WORSE THAN YOU THINK

IBAW WHITE PAPERS: - NLRB FRANCHISE RULING - EXPORT / IMPORT BANK

Networking matters

At AT&T, we know that making connections is critical to success. In Wisconsin and across the nation, we link businesses with their customers and the world through our wireless network with access to the nation’s largest Wi-fi network. It’s just another way we help our customers stay connected.

AT&T is proud to support the Independent Business Association of Wisconsin.

© 2014 AT&T Intellectual Property. All rights reserved.

IBAW thanks AT&T for it’s continued sponsorship.

IBAW MEDIA LINK Executive Director Steve Kohlmann President John Weber Hypneumat Secretary Charles Fry Robert W. Baird & Co., Inc

Senator Ron Johnson’s talk on the Federal Budget.

“It’s worse than you think.”

President Elect 2014 Membership / Sponsorship Jim Leef ITU AbsorbTech VP. State & National Programs Jeff Hoffman Judson & Assoc.

To view, click here.

Treasurer Casey Malek Sikich Directors Bart Adams Sikich Ann Barry Hanneman Simandl Law Group S.C Heather Baylor Park Bank Richard Blomquist Blomquist Benefits Lisa Mauer Blackhawk Industrial Jason Kuwayama Godfrey & Kahn Tom Boelkow BSI Design, Build, Furnish

IBAW Mission: To advance business prosperity through insightful programming, executive networking and member-driven public policy and advocacy.

Craig Coursin MSI General Robert Gross Gross Automation

Business Education Series FIVE STAR Programing

September 19th Meeting “Wisconsin Workforce: Agony or Ecstasy” Jonathan Barry, Deputy Secretary, Department of Workforce Development

Scott Jansen, Director of the Office of Skills Development

There isn't an industry not impacted by the need to find good, qualified workers. The issues are almost always the same: • Unable to find workers who can pass a drug test.

• Workers lacking in the basic skills of reading & math.

• Workers that want to show up and actually work.

• Replacing an aging workforce.

What is the State of Wisconsin doing to help you, the small business owner, to change these frightening trends?

What short term and long term solutions are being looked at?

Learn about the demand driven training/grant programs for employers and talent development strategies for Wisconsin and what DWD is doing to address your concerns.

COST: IBAW Members....$32.00 Guests....$42.00 Includes high level networking and plated breakfast!

Attire: Business professional.

Registration now open! Click here.

LOCATION

THE WISCONSIN CLUB 900 W. WISCONSIN AVE. MILWAUKEE

7:00 AM

REGISTRATION & NETWORKING

7:30 AM

BREAKFAST & PROGRAM

9:00 AM

PROGRAM ENDS

Sympathy for the Devil Steve Kohlmann, IBAW Executive Director “I could never do sales, I couldn’t handle the pressure and rejection.” That comment, uttered in passing by my sister, was very eye opening. My sister, you see, was a HR executive who dealt with hardball union officials on employment, benefit issues, contract renewals. Everything nitpicked and hardcore. And she could’t handle the pressure and rejection of sales? Really? I’d much rather be in sales than battle over a union contract - even if it’s something you only have to do every few years.

Sales can be a tough job, always has been, always will be. It hasn’t been made easier by the Great Recession, new technology, competition (locally, nationally and globally) and a host of other reasons too numerous to fill this page. When we think of salespeople we generally think negatively: Car salesmen, insurance salesmen, the guy or gal who interrupts your day dropping in unannounced to sell you a new copier. Or the person who comes to your house just as you’re putting a dinner fork in your mouth wanting to give you a quote on a new roof because of that hailstorm that came through last month.

But sales is key for any business and dealing with salespeople is vital. They are the people who save you money, time and can make your business more efficient or make that impossible deadline somehow possible. Your internal sales people keep your employees working, your doors open, and represent your brand and reputation as an ambassador. But they can easily be misunderstood and be viewed by internal production people as “the devil” since anything brought in makes people work, and salespeople often push deadlines to meet the customer’s demands. And often, as in my own past experience, internal teams don’t fully understand what salespeople do. If a salesperson is in the office doing paper work or making follow up calls, worker bees question why they aren’t out making calls. And when they out making calls, they are probably screwing off, playing golf or having a two-hour lunch over cocktails after playing golf. Make calls on a sunny day or a Friday afternoon and comments such as “I suppose you’re taking the rest of the day off” arise. Truthfully, sales calls are made on days when the weather is nice and when it is -10 degrees in February with snow coming down sideways. While others head home to a warm house, salespeople are battling rush hour to get to a networking event downtown in hopes of meeting that right connection.

Both production people and middle management often believe sales can be turned on and off and regulated - sort of like turning the knob on a faucet. Need work? Turn the knob a little bit and let some sales come out. Oh, you don’t want to work overtime or we’re coming up to capacity? That’s OK, just turn the knob and cut off the flow, let me know when you’re ready for more. The reality is when you turn the knob it either comes out as a drip or the knob comes off in your hand and gushes out uncontrollably (HALLELUJAH!). Or the worst - not at all.

Business owners are more sympathetic towards sales people. They know nothing happens until a sale is made so a good sales team is vital for any business, especially these days when competition is fierce. It might also have something to do with the fact in their humble beginnings, business owners dealt in sales themselves. They know how tough it can be when you are out beating the bushes for work.

Love them or hate them, when it comes down to crunch time and a business is faltering, with layoffs looming, everyone turns to the salesperson to bail them out. “Sales cures all” I believe is the catchphrase. (Just a side note, if you have a crap product or crap service, sales won’t cure all for long.)

There’s a lot that goes into a sale - and your next sale, too. Everything from a salesperson actually showing up and making a call to pricing, marketing, and your reputation (or lack thereof), to your delivery guy’s attitude and even the person answering your phone.

Networking, making connections, how you dress, even what type of car you drive plays a role. I knew of one salesperson who wouldn’t take her fifteen year old BMW on calls for fear it would look like she didn’t need a sale. After all, she was driving a BMW. Sales people makes things happen and nothing moves until a sale is made. Yes, sales is often a tough, lonely job that’s often misunderstood.

Show a little sympathy for the devil. They need it more than you think.

HIGH VALUE WORKSHOP - Bring Your Marketing Team!

“Successful Websites & Online Catalogs for Manufacturers” Presented by: Patrick Bieser Founder, Northwoods

Thursday, September 11 ADMISSION: FREE!

In this workshop we’ll share best practices that increase website traffic, leads and sales. Learn to plan an effective strategy and the secrets of successful product catalogs and product detail pages.

WE’LL SHARE: • Ten rules of effective online catalogs & product detail pages • SEO & Social Media strategy • Content writing for the web • Dealer/rep locators • ERP integration • Using a PIM to manage graphics & data from multiple sources • Online tools & features that increase conversions • Mobile sites, responsive design, custom apps, & more WHO SHOULD ATTEND: • Manufacturing & distribution business owners, managers • Marketing directors & marketing teams • Website managers & staff

Location: SE Wisconsin Regional Planning Commission Hwy 164 north of I-94 on Rockwood Drive W239 N1812 Rockwood Drive, Waukesha

View Map

Schedule: 8:15am - 8:30am › Check-in / Coffee Selection 8:30am - 11:00am › Workshop / Q&A

Registration & More Info: LearnAtNorthwoods.com/mfg

SALES: Best Practices ROUNDTABLE

Monday, September 8th 7:30 AM - 9:00 AM.

This month we'll discuss 'Branding' and its influence in adding credibility to your sales tactics. What it is, how to utilize it and how to communicate it so you stand out. This is open to anyone in a business development role at an IBAW member company who would like to share their real world challenges and most successful strategies for growing business.

This Roundtable is meant to serve as a confidential means to learn from your peers in other industries and to help others learn from your experience – good and bad.

Location: Cost: Free - A benefit of IBAW membership.

CTaccess Conference Room (Registration is required) 740 Pilgrim Parkway, Suite L3 Elm Grove Registration is open! Click here.

Coffee provided by CTaccess, bagels provided by IBAW.

SBE Council Ranks the 50 States in “Small Business Policy Index 2013” The Small Business & Entrepreneurship Council (SBE Council) released its 18th annual “Small Business Policy Index 2013: Ranking the States on Policy Measures and Costs Impacting Small Business and Entrepreneurship.”

SBE Council has published the state Index for 18 years, which ranks the 50 states according to 47 different policy measures, including a wide array of tax, regulatory and government spending measurements.

The states that have the most entrepreneur-friendly policies under the “Small Business Policy Index 2013” are: 1) South Dakota, 2) Nevada, 3) Texas, 4) Wyoming, 5) Florida, 6) Washington, 7) Alabama, 8) Indiana, 9) Ohio, 10) Utah, 11) Michigan, 12) North Dakota, 13) Arizona, 14) Colorado, and 15) Virginia.

In contrast, the states with the least friendly policy environments for small businesses are: 40) Rhode Island, 41) Connecticut, 42) Oregon, 43) Iowa, 44) Maine, 45) Minnesota, 46) Hawaii, 47) New York, 48) Vermont, 49) New Jersey, and 50) California.

The “Small Business Policy Index 2013” can be read and downloaded here, with an interactive map and slide show on SBE Council’s website here.

SBE Council president and CEO Karen Kerrigan said: “Policy reforms that bolster small business startup and growth are mostly being implemented at the state level. Unfortunately, federal policy and uncertainty remains an overall negative for entrepreneurs and small businesses. But states vary widely in terms of their policy approaches. The top states on the Small Business Policy Index 2013 are streamlining government and lifting burdens like excessive taxation and regulation. They are passing responsible budgets, and living within their means. The worst ranked states keep treating small businesses and entrepreneurs as piggy banks to fund higher spending and bankrupt programs.”

Kerrigan added: “Governors and state leaders who are serious about improving their entrepreneurial ecosystems are aggressively working to change policies that are harming entrepreneurship and business growth. The White House needs to closely examine what the most successful states are doing to help entrepreneurs. These pro-growth policies, if

enacted at the federal level, would make a major difference for U.S. economic growth and competitiveness.”

Raymond J. Keating, SBE Council’s chief economist and author of the study, pointed out, “This study is straightforward and well documented. The Small Business Policy Index 2013 is built on sound, clear-cut economics, as understood in Economics 101 and evidenced by the many studies cited in the Index. Quite simply, the states are compared and ranked according to how state and local government policies impact costs and incentives for entrepreneurship and investment. In turn, such risk taking is critical to economic growth, income growth and job creation.”

Keating added, “Small business owners and business leaders need to look at the details for their respective states. The Small Business Policy Index 2013 is a valuable tool to let policymakers know where improvements are needed, so that entrepreneurs can do what they do best, that is, start up and build businesses, innovate, grow the state’s economy, and create jobs.”

EXPORT IMPORT BANK REAUTHORIZ ATION DEBATE The government run Export-Import Bank provides direct loans, loan guarantees and credit insurance to help foreign buyers purchase American-made products.

WHAT IS IT? The Export Import Bank (Ex-Im) was established in 1934 to provide working capital guarantees (pre-export financing); export credit insurance; and loan guarantees and direct loans (buyer financing) financed through US Treasury to assist US businesses with financing trade deals to international markets. While the Ex-Im reports that 90% of the 3,413 transactions they completed in 2013 were with “Small Business”, the actual monetary volume of deals is heavily concentrated with “Big Business” such as Boeing, GE, & Caterpillar. As an example; it is estimated that Boeing has financed $48 billion worth of deals over the past 5

Pros & Cons for Wisconsin Businesses: Pros:

•

worth of export deals from Wisconsin Companies.

•

Ex-Im deals have been estimated to impact 25,560 jobs in the State.

•

Wisconsin possesses a great depth of suppliers to companies such as Caterpillar, who routinely use the Bank to finance mega deals. This drives economic development for not only the Big Business but also for

WHAT IS THE SIZE OF EX-IM?

the Small Business suppliers who will benefit from the

The total operating budget of Ex-Im in 2013 was approximately

deals being transacted.

$90 million generally paid for by user fees. While user fees payer) and are covered if there is a default. Total loan

Out of the 177 exporters assisted in the State, 105 were classified as small businesses.

•

years through Ex-Im.

finance the program, the loans are backed by Treasury (tax

Since 2007 the Ex-Im bank has supported $4 billion

Cons:

•

While Ex-Im has been profitable to tax payers over the

authorizations in 2013 were $27 billion which supported $37.4

past 5 years, returning $1.6 billion in fees to the

billion of export sales. To put the deal volume in perspective, the

treasury, Ex-Im’s loan guarantee exposure (backed by

Chinese used their version of the Ex-Im to finance more than

the Tax Payer) has exploded from $57.4 billion in 2007

$100 billion worth of trade deals in 2013.

to $113.8 billion in 2013. The CBO recently estimated that if the bank used fair-value accounting the bank

WHAT IS THE ISSUE? The Ex-Im charter comes up for reauthorization on September

could lose $10 billion over the next decade.

•

The Ex-Im bank creates market distortions. For

30th, 2014 and congress must act to keep the program funded.

example, Delta Airlines has complained that Boeing has

Ex-Im has asked for a 5 year reauthorization with an increase in

been able to lower the cost of their goods with the

total exposure level to $160 billion. A program that is relatively

backing of the Ex-Im to deliver orders to Air India which

insignificant, compared to the scale of the federal government,

is a competitor of US based Delta. Air India can now

has become a lightning rod in the ongoing debate over the reach

pass the cost savings onto their customers which puts

and role of the federal government’s involvement with private enterprise.

Delta at a competitive disadvantage.

•

Crony Capitalism. Ex-Im is viewed as a tool for the politically connected to receive an artificial tax payer subsidy to lower their cost of operations while shifting risk to the tax payer.

This white paper compiled by IBAW Board Member, Jeff Hoffman, head of State & National Programs for the IBAW.

NLRB’s Suit Against McDonald's Expanding Joint Employer Liability Impacts Small Business

W H I T E PA P E R

The National Labor Relations Board ruling on McDonald's could damage a large share of the economy: the franchise industry.

NLRB’s Suit Against

control of employment practices and thereby solely responsible for any NLRA violations.

McDonald's Expanding Joint Employer Liability Impacts

The NLRB, however, advocates changing this standard to make

Small Business

proposed standard, also known as the industrial realities test,

the joint liability standard to be less restrictive.

The NLRB’s

would find joint employer status under a totality of the

On July 29, 2014, the National Labor Relations Board (NLRB) General Counsel Richard E. Griffin authorized filing a complaint against McDonald’s, USA, LLC along with the McDonald’s franchises where alleged violations of the National Labor Relations Act (NLRA) occurred. This authorization to sue both entities is a departure from how the joint employer doctrine has been applied in franchise situations involving NLRA violations and has sent a shock wave across industries where small business franchises are prevalent.

circumstances basis where the corporate entity “wields sufficient influence over the working conditions of the other entity’s employees such that meaningful bargaining could not occur in its absence.”

Under the industrial realities test as proposed, a

franchisor’s liability as a joint employer would include instances where the franchisor keeps track of data on sales, inventory, and labor costs; calculates the labor needs of the franchises; sets and polices employee work schedules; tracks franchisee wage reviews; tracks how long it takes for employees to fill customer orders; and screens applicants throughout the system.

This

expansion will have far reaching effects and will likely impact This issue of joint liability resulted from a series of complaints filed across the country. Since November 2012, the NLRB has received 181 cases involving McDonald’s arising from employees’ participation in protests for higher wages. Of those cases, 68 were determined to have no merit and 64 are still in investigation. During the course of discussions to settle the 43

many employment relationships long considered to be outside the scope of joint employment for liability purposes.

The

application of “sufficient influence” will be subject to interpretation and suggests that all aspects of the “running of the business” will be examined, going well beyond the issue of who makes the ultimate decisions affecting employees.

cases determined to have merit, the NLRB announced that it will issue a complaint against both the franchises as well as McDonald’s USA, if resolution cannot be reached.

In the cases involving McDonald’s, it is claimed that McDonald’s USA sufficiently influences the working conditions of the franchise employee and, therefore, should be jointly responsible

The NLRB has advocated for an expansion of joint employer liability and this recent announcement is a sign the NLRB is aggressively pursuing that expansion. In a recent “friend of the court” brief filed by the NLRB in June of this year, the NLRB argued that existing franchise owners may not be the sole employer of their business despite the contractual and understood arrangement with the franchise.

In this brief, the

NLRB argued in favor of a broader interpretation of joint employer liability.

Under the current standard, the “significant

control” standard, joint employer liability is found only when the employer at issue directly controls employment practices of the

for any resulting NLRA violations.

According to arguments by

the Fast Food Workers Committee, a group funded by Service Employees International Union, McDonald’s exceeded its bounds as franchisor through prevalent means of control on their franchises. The complaints specifically allege that McDonald’s provided strict rules regarding hiring, food, cleanliness and other employment practices and that McDonald’s USA actually owned many of the restaurants used by the franchises. The NLRB will likely take the position that these “means of control” are sufficient to hold McDonald’s liable for any NLRA violations that affect employees at franchise locations.

other company. The application of this standard acknowledges the franchisor-franchisee relationship in that franchisees retain the name and face of their corporate counterpart, but maintain extensive independence in administering wages, scheduling hours, retaining discretion on hiring, and controlling day-to-day operations. Under this standard, the franchisee is found to be legally independent for purposes of labor relations given its

The proposed extension of joint liability jeopardizes thirty years of established law governing the franchise model in the United States and threatens the economic viability of such business models and relationships. Businesses that use subcontractors or temp agencies, dry cleaners and car dealerships are just a few examples that may be encompassed by the scope of the

industrial realities test, as the joint employment concept is just not limited to franchise relationships. The NLRB’s decision to advance its agenda in expanding the joint employer liability standard will require all employers to carefully examine the way it does business, particularly small business who rely on other businesses. Just how far the NLRB will take this joint employer expansion remains to be seen and employers should keep abreast of further developments in this area. Significant developments in this area will likely make it easier for unions to organize and to collectively bargain, negotiating terms and conditions directly with the franchise.

The impact of the NLRB’s decision to sue McDonald’s will negatively affect small business owners, particularly those who have developed independent businesses in the franchise model, and will affect the overall growth of small

“The proposed extension of joint

business if the NLRB succeeds in applying this expanded joint employer

liability jeopardizes thirty years of

standard. The uncertainty as to who bears the responsibility for employment

established law governing the franchise model in the United States...”

decisions will necessarily deter the growth of such business models and relationships. Franchisers will have to become actively involved in the day-today operations to monitor and control legal exposure and franchisees will be restricted from independently making decisions that affect the profitability of their independent business. Given that small businesses have accounted for 60 percent of the net new jobs from mid-2009 to mid-2013 according to the SBA’s Office of Advocacy, this potential impediment will have to be monitored.

Consistent with IBAW’s mission to advance business prosperity, IBAW will continue to keep its members apprised of the developments on this joint employer issue and its impact upon Wisconsin businesses. ###

AUTHOR

Ann Barry Hanneman is a member of the IBAW Board of Directors and is a Principal at Simandl Law Group, S.C., a boutique law firm that represents www.IBAW.com

businesses in labor and employment matters.

If You Want to Build a Stronger Brand, Focus on Your Touch Points.

Scott Seroka, Seroka Branding

We’ve been beaten senseless with statistics on how many marketing messages we’re exposed to every day. The numbers range anywhere from 2,000 to as many as 12,000. The unfortunate fact is that we don’t even notice 95 percent (probably more) of these messages, making it that much more difficult for marketers to “capture” our attention and motivate us into making a purchase decision.

The popular argument is that more marketing boosts brand awareness and brand uniqueness, so that when customers are ready to buy, our brands will be strongly considered. By this simple rationale, the marketer with the largest marketing budget will consistently beat the odds and win. But this is not rational thinking. It is neither strategic nor accurate, for one reason: Pouring more dollars into marketing a fuzzy brand is like shining high beams in the fog. It simply highlights a brand’s lack of clarity, and at times, confuses customers even more.

The more strategic and effective approach to creating brand awareness and communicating brand differentiation, among many other metrics, is to define your brand promise, and then direct your focus on living and delivering that promise through your brand’s touch points. Touch points are those areas where buyers connect with your brand as they move through the sales process. They can be broken down into three categories: pre-purchase, purchase and post-purchase.

How is this done? Consider the example of a manufacturer promoting the following brand promise for its services division: Proven solutions for maximum uptimeSM. There are two primary messages to work with: solutions and maximum uptime. Below are several examples of how this manufacturer can live and communicate its brand promise through some primary touch points.

Pre-Purchase Online. Content could be created around the theme of solutions through a FAQ page and case studies exemplifying solutions to common problems. This manufacturer should also do whatever is possible to ensure that its site never goes down, as it would run completely contrary to “maximum uptime.”

Marketing/PR channels. Images and content should be consistent and representative of the brand promise. The company should provide examples and other evidence of how it is able to promise solutions and maximum uptime.

Plant tours. New scripts and guidelines should be created for tours focused on the brand theme.

Purchase Points Delivery and installation. When products are repaired and delivered, deliveries should always be on time, all the time, and the delivery team should be well schooled in proper installation, no matter what conditions or obstacles may be in the way. This would reinforce the “solutions” theme.

CSR experience. This department should be staffed with experienced, knowledgeable and creative people who know how to think on the fly. They should be able to offer ideas and solutions to even the most complex problems.

Delivery and training. There’s a lot to be said about reaffirmation of customer (purchase) decisions. When delivering the serviced product, the company rep will explain how the product was refurbished or rebuilt so that it does in fact provide maximum uptime.

Post-Purchase Points Customer appreciation. The company needs to think in terms of what can be done to show appreciation for its customers’ business. Whether it is an event or a visit, the brand promise needs to be creatively reinforced.

Responsiveness. Since part of the theme is focused on uptime, the company will need to have an exceptionally responsive team to handle calls, inquiries, etc.

Service experience. From the perspective of the customer, any service-related issue is a violation of the brand’s promise of maximum uptime. Service should be handled quickly with minimal interruption to the customer’s business.

Warranty. The warranty should be the best, or at least one of the best in the industry.

Your brand is your greatest asset – it’s your character, your integrity and everything you stand for. A tagline is not just something that is meant to be catchy or sound good. Your customers view it as your promise, and when they connect with your brand, it is an expectation. If customers don’t experience what your tagline and marketing led them to believe, your brand credibility will lose a lot of altitude.

Johnson, Kooyenga Reach Out to Small Business Owners Senator Ron Johnson and 14th District Representative Dale Kooyenga discuss a range of topics from Wisconsin’s workforce, manufacturing tax rates and charter schools during a feedback session August 22nd at QPS Employment Services in Brookfield.

BLS Releases Latest Private-Sector Job Creation Statistics

October 17, Chicago, IL The Strategic Sourcing Forum is the second Leadership Series event for 2014, that will focus squarely on the challenges facing SME importers from China. As we enter a new era where double-digit price reductions stemming from labor arbitrage are harder to find, SME’s must now aim at becoming more effective and efficient at managing Chinese suppliers if they are to avoid margin compression.

Click here for more information.

IBAW Legislative Priorities Online

State Legislative Priorities 2014 State Legislative Priorities

- Workforce Development / Technical College Benchmarks - Pro Growth Tax Reform - Address the Structural Deficit of WI DOT - Predictable Sand Mining Regulation

1- Workforce Development / Technical College Benchmarks 2 - Pro Growth Tax Reform 3 - Address the Structural Deficit of WI DOT 4 - Predictable Sand Mining Regulation

Click here to view.

Hi-Crush Partners LP

National Legislative Priorities - Delay of the Affordable Care Act - Support the Existing Level of the Federal Minimum Wage

2014 National Legislative Priorities

- National Energy Policy Capitalizing on our Strengths - Increase Access VISAS for Immigrants with Advanced Degrees & Start Ups

1- Delay of the Aordable Care Act 2 - Support the Existing Level of the Federal Minimum Wage 3 - National Energy Policy Capitalizing on our Strengths 4 - Pro Growth Tax Reform

Click here to view.

5 - Increase Access VISAS for Immigrants with Advanced Degrees & Start Ups

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