MBJ_June13_2014

INSIDE — Lawrence County lands first out-of-state business in more than a decade

35

Natchez Brewing Co. renovating historic downtown building

YEARS

1979

www.msbusiness.com

2014

June 13, 2014 • Vol. 36, No. 24 • $1 • 20 pages

GOVERNMENT

TRANSPORTATION

CHRISTMAS IN JULY

» Lisa and Pat Miller have begun work on their new craft beer brewery, dubbed the Natchez Brewing Co.

» Department of Revenue workers moving from tin shed into modern new home over the 4th Weekend

More, P 8

By TED CARTER I STAFF WRITER ted.carter@msbusiness.com

From Mississippi {P 3} » DSU alum David Abney credits ‘willingness to do more than asked’ for his rise to CEO of UPS Strictly Biz {P 9} » Voters view casinos more favorably, poll shows

VAYA CON DIOS,

SOUTHWEST MBJ Focus {P 10}

» LAW & ACCOUNTING List {P 12-14} » OLDEST LAW FIRMS

Jackson airport’s regional draw, role in feeder system seen as strengths after Southwest loss » Page 2

Perhaps never in the history of Mississippi government will saying goodbye to a longtime home be as joyful as the July 4th weekend departure of the state Department of Revenue from its tin warehouse off Springridge Road in Raymond.

Snakes and birds, soot from a long ago fire and rain water from below walls and down from the ceilings – even an exploding toilet – were all features of the 17-year exile that is about to end for the Revenue Department.

The 500 or so DOR workers will trade an over-sized shed designed to store Mississippi Power Co. equipment for Class A office space just up Springridge Road at SouthPointe Business Park, the former home of telecom giant WorldCom just off Interstate 20. The late March 2013 news of the SouthPointe selection brought spontaneous cheers and applause from the workers, a few of whom were part of what was suppose to be a 2year relocation to Raymond from downtown Jackson's Woolfolk building.

The celebratory vibes have only increased with the closeness of moving day. “Hallelujah!

Seriously, we are so anxious to go,” said Kathy Waterbury, the DOR's communications chief who was among those moved out of the Woolfolk.

See DOR, Page 4

http://msbusiness.com/events/health-care-heroes-nomination-form/

2 I Mississippi Business Journal I June 13 2014 TRANSPORTATION

Jackson airport’s regional draw, role in feeder system seen as strengths after Southwest loss » Aviation consultants says remaining carriers showing passenger loads of more than 80 percent

By TED CARTER I STAFF WRITER ted.carter@msbusiness.com

Southwest Airlines’ final take off from Jackson- Medgar Wiley Evers International Airport in Jackson Saturday left local passengers without the option of a low-cost, no-frills carrier they have relied on for 17 years.

For the airport, the departure left marketing and revenue challenges to overcome.

To start, executives at Mississippi’s largest airport must confront the distinction of having a destination-limited airport that is now even more limited in its destinations. They as well must sell carriers on a secondary-market airport that is the first to lose Southwest Airlines’ service.

The only other two service closings occurred in the major metro markets of Denver and Detroit, though in 1973 — early in Southwest’s life as a Texas commuter airline — it ceased service to Beaumont, spokesman Brad Hawkins said.

Southwest included shutdowns of service to Branson, Mo., and Key West, Fla., in its December announcement on Jackson, though the airline took over those small markets just a few months previous through its acquisition of AirTran.

Hawkins attributed the decision to leave Jackson to the airport’s failure to meet passenger load expectations over a several-year period. Southwest offered four flights with direct service to Chicago, Houston and Orlando.

On the revenue side, Fitch Ratings Service this spring downgraded the Jackson Municipal Airport Authority’s rat-

ing on $39.4 million of revenue bonds to “BBB+” from “A”, forcing year-long delays in upgrades for airport security checkpoints, improvements to the terminal building and the relocation of a facility to service rental cars.

In its downgrade announcement, Fitch noted the pending loss of Southwest led to an 18 percent increase in landing fees to remaining carriers and an 8 percent jump in parking fees.

Medgar Evers International also was to implement another 15 percent landing fee increase in May to offset future declines in revenue caused by Southwest’s departure.

Today’s circumstances leave the airport minus two key assets marketers say increase an airport’s competitiveness: Low fees and a modern terminal.

So why is commercial aviation consultant Michael Boyd bullish on Jackson-Edgar Wiley Evers International?

To start, Boyd said, the airport’s current carriers are not too bothered by the series of fee increases, and are encouraged by passenger load factors that surpass 80 percent.

“They understand that to get the traffic that Jackson delivers, there are airport costs,” said Boyd, principal of Evergreen, Colo.-based Boyd Group International.

Boyd, who is familiar with the airport through previous work for the Jackson Municipal Airport Authority, said rising costs forced Southwest out of Jackson. Absent increased expenses, it could have continued at Medgar Evers International with its load factors of 65 percent to 70 percent, he said. “Remember that the Southwest decision was made due to issues at the carrier, not at Jackson.”

Recent developments have increased Jackson’s importance to the Mississippi air access picture, Boyd added. “Tupelo, Meridian, and Hattiesburg now have essentially no viable scheduled air service. The Silver Airways flights simSee

STRENGTHS, Page 4

RIZON HO E TH ON BE D UL CO O ND LA OR TO E IC RV AIR SE

By TED CARTER I STAFF WRITER ted.carter@msbusiness.com Airlines’ departure if airport officials receive a U.S. l Airport to Orlando could resume after Southwest ationa Intern Evers dgar n-Me Jackso from e servic Direct are confident of getting.

Department of Transportation grant they say they d service to New York City. gaine t airpor the which by one same the The grant is e could resume soon through a helping hand ture of Southwest Airlines from Jackson. But servic depar s ay’ Mond The direct service to Orlando ceases with rity spokesman Gene Moore. from USDOT, said Jackson Municipal Airport Autho he said. “These grants have various Air Service Development Grants later this summer, unity Comm Small the for appy will rity Autho rt The Airpo program is opened for this year, we do not have any ble, and where they can be expended so until the stipulations related to the total amount of funds availa further details to provide,” Moore said in an email.

York market, so we feel fairly confident that we will a similar grant in support of new service to the New “JMAA was successful in applying for and receiving be equally successful this year.” carriers are adding flights.

Meanwhile, Medgar Ever International’s remaining Delta Airlines is introducing larger scale aircraft to their hubs in Chicago and Houston, Moore said. flights onal additi United Airlines has already scheduled to offer additional services, he added. ” Once that merger is complete, we expect that their planned merger to become the “New American. leting comp are ys Airwa US and s Airline ican Amer ting, Moore said. they are serving and the type of aircraft they are opera New American will do an assessment of the cities esentatives from the New American have made “Repr d. behin leaves west South space t airpor the of some for ant occup new a to lead That merger could currently held by Southwest,” Moore said.

Eagle and US Airways operations in the leasehold inquiries about consolidating the existing American

Aviation marketers give their Rx for Jackson airport

By TED CARTER I STAFF WRITER ted.carter@msbusiness.com A pair of New York commercial aviation marketing specialists shared their thoughts on how executives at Jackson-Medgar Wiley Evers International Airport can strengthen the airport’s role as Central Mississippi’s main aviation draw.

Rocco Cipriano, president of Westchester-N.Y.-based Aviation Marketing, said a good first step is to break down the kinds of travel for which fliers use the Jackson airport. Next, he said, find “how many of those are frequent fliers or travelers and the impediments” they encounter in using the airport.

“Is it convenient? How is it comparing to other” airports that its passengers could use? Cipriano said.

Airport executives should also be extensively involved in economic development efforts, he said. “If it (the region) doesn’t have an economic development program in place, why would business” fliers want to come there?

The effort should include land-use policies and regulations conducive to attracting aviation-related businesses to the airport and the areas surrounding it, Cipriano advised.

“So much really depends on the underlying economic dynamics of the area,” he noted, and listed steps such as establishing economic zones around the airport with zoning to accommodate new businesses and prevent residential encroachment.”You can renovate the terminal, create a marketing campaign, create a great new logo. But if the underlying economics are not conducive to attracting travelers, it is – like they say – putting lipstick on a pig,” Cipriano added.

Enhancing the airport’s general aviation operations would be a positive step, according to Cipriano, who said he believes a well-run general aviation component “can make an airport vibrant.”

The Jackson Municipal Airport Authority offers general aviation service for privately owned aircraft at both Medgar Evers International and Hawkins Field. At the Jackson airport, general aviation passengers are accommodated at Atlantic Aviation and cargo is handled at the Mississippi Air Cargo Logistics Center. Aero Jackson services Hawkins Field general aviation customers.

Jamie A. Myer, president & CEO of Syracuse-based Perfect Landing Media, said Jackson’s airport should market its strengths.

Here are some ideas he provided:

» Jackson Medger-Evers International Airport ... we'll get you where you need to go.

With three of the industry's finest carriers — American Airlines, Delta Airlines and United Airlines — air travelers from throughout Central Mississippi are well-served by the Jackson Medger-Evers International Airport. Offering all the amenities of a larger airport, with the smooth, stress free experience of flying in or out of a smaller airport, Jackson-Evers is the best of both worlds.

See

MARKETERS, Page 8

June 13, 2014

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Mississippi Business Journal

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3

MISSISSIPPIAN IN THE NEWS

Yesterday the loading dock, today the top spot at UPS » DSU alum and Greenwood native David Abney credits ‘willingness to do more than asked’ for rise to CEO

By TED CARTER I STAFF WRITER ted.carter@msbusiness.com It takes a lot of right turns to go from the Mississippi Delta to the top executive suite at United Parcel Service’s Sandy Spring, Ga., headquarters.

Right turns are among the top commandments handed to new drivers for the world’s largest package delivery service. They constitute the safest and fastest way to go from Point A to Point B, according to the company gospel.

David Abney started his right turns as a UPS delivery driver in Pascagoula after graduating from Delta State University with a business degree.

Elevation to driver came after working nights on a UPS loading dock in his hometown of Greenwood while in college. He followed his stint as a driver with five years in the packing end of the operation.

By 1980, his right turns took him to the company’s Georgia HQ and a career tract that has the 58-year-old executive slated to take over as CEO of the $53 billion global logistics and package delivery operation on Sept. 1. Abney, who has been COO the past seven years, replaces the retiring Scott Davis.

Davis, in a press statement on the announcement of Abney’s promotion, cited the Delta native’s ability to anticipate global trends and identify both risks and opportunities. Those attributes have proven invaluable as the company “navigated through challenging economic recovery periods during my tenure as CEO,” said Scott, who will become non-executive chairman after Sept. 1.

Abney does not have a lengthy list of things he thinks led to the increasingly important roles he took on at UPS, including the presidency of UPS International and before that the presidency of SonicAir, a same-day delivery service that signaled UPS’s move into the service parts sector, In short, the executive rise came through “a willingness to do much more than I was asked to do,” Abney said in an interview just before catching a flight out of Atlanta Tuesday morning.

“Early on, some of my managers recognized something in me. They did a great job putting me in good positions, where I worked with and for a lot of good people.”

Today, he’s following the lead of the execs who recognized and supported his potential, he said. “I think I’m leading good people,” Abney said. “I give them support and training and get out of their way and let them do their jobs.”

Abney said he takes a lot of pride in the technological strides UPS has made, including ORION, or On-Road-Integrated Optimization and Navigation.

The late 2013 rollout of the new system is designed to optimize 10,000 delivery routes by the end of this year, reducing miles driven and reinforcing UPS’s sustainability efforts, the company says.

The sophisticated ORION software combines customers’ shipping requirements with customized map data the company has compiled to provide UPS drivers with optimized routing instructions, UPS says.

The company expects to save 1.5 million gallons of fuel a year and reduce carbon dioxide emissions by more than 14,000 metric tons. “A reduction of just one

mile each day per driver over the course of a year saves the company up to $50 million annually,” UPS said in a press statement.

Noted Abney: “If you have 80,000 to 90,000 drivers and you save just one mile from each, you can see the big savings that will follow.”

Further, ORION gives the customer more control of

the delivery, including when and where the delivery is to be made even as it is en route to its original destination. “We’re using technology in a way that our competitors can’t match,” Abney said.

He said through his role as COO and previous to that president of UPS International, he gained an appreciation for the immensity of global trade and the

Abney tremendous potential for U.S. companies in general and UPPS in particular to participate in it. He is especially excited about the potential for UPS serving businesses in

See

ABNEY, Page 9

Congratulations

2014 class of Best Places to Work honorees from the

This magazine will profile all AWARD RECIPIENTS and pay tribute to their excellence in business and community achievements.

Adams and Reese, LLP All American Check Cashing Atmos Energy Corporation Baker Donelson Business Communications Inc. Camellia Healthcare CF Industries Inc. Community Bank Fast Enterprises, LLC Gilmore Memorial Regional Medical Center

Haddox Reid Eubank Betts, PLLC Harrah’s Gulf Coast Hol-Mac Corporation Jackson Municipal Airport Authority KeyStaff Source May & Company, LLP Metropolitian Bank Navigator Credit Union NewSouth NeuroSpine Ross & Yerger Insurance Inc.

Rushing & Guice, PLLC Southern Pipe & Supply Company Inc. State Street Group, LLC Synergetics Diversified Computer Services Inc. Tempstaff Inc. Think Anew, LLC Tower Loan Venture Technologies Viking Range, LLC

2014 SPONSORS

For more information on Best Places to Work and other events please visit www.msbusiness.com/events or call Tami Jones at (601) 364-1011

4 I Mississippi Business Journal I June 13 2014 Photo courtesy of DOR

DOR

Continued from Page 1

At left, DOR’s new facility in Clinton.

A series of circumstances After the Woolfolk's renovation, state officials decided to move workers from the nearby Walter Sillers building into the Woolfolk while Sillers underwent renovation. Those workers, however, remained at the Woolfolk permanently. With Sillers' space insufficient for the DOR, the revenue agency's stay in the Raymond warehouse became permanent.

Hopes for getting out died with arrival of the Great Recession and accompanying state budget cuts near the end of the last decade “When we came out of the recession, we started saying it was our turn. This has gone on long enough,” Waterbury said.

Even after getting the go-ahead from the state, finding a suitable site and deciding whether to build new or buy or lease an existing building took another several years. The pending July 2014 end to the lease on the Raymond warehouse finally forced a decision: the DOR would take a longterm lease on slightly more than 200,000 square feet covering seven floors in two buildings at SouthPointe.

Revenue Commissioner Ed Morgan's patience got plenty of testing during the wait for a green light to start the hunt and through the hunt itself. “It started off as a very long and very frustrating process,” Morgan said in an interview last week.

Although it was a long wait, it was a fair process, Morgan said, alluding to the feelings of some downtown Jackson proponents that provincial politics led to selection of SouthPointe in Clinton, home of House Speaker Philip Gunn, over the vacant Landmark Center a few blocks from the Capitol.

While the Landmark's price had been cut nearly in half from an original price of $14 million, leasing SouthPointe proved the better fit, according to Morgan. “Financially, it was a good investment. It met our operational needs,” he said.

“Wherever we went, we wanted to be a in a facility that would offer efficiency and the ability to serve the public.”

Morgan, a former state senator and 12-year mayor of Hattiesburg, took over as tax commissioner on Jan. 1, 2009 on an appointment from Gov. Haley Barbour to fill an unexpired 1 1/2-year term of predecessor Joseph Blount. Barbour reappointed Morgan to a full 6-year term in 2010.

He's glad to put the massive storage shed behind him but noted he is even more pleased to see DOR workers finally get suitable quarters. “After 17 years in a less-than-desirable facility and having to deal with the summer high temperatures and leaky roofs, employees are in a hallelujah mode.”

Hiring and keeping staffers has been difficult throughout the extended stay, Morgan noted, and said he looks forward to showing future staff prospects around the DOR's new modern and attractive SouthPointe offices.

STRENGTHS

Continued from Page 2

ply could not offer access to the rest of the world, and with just two to three flights a day, the drive to Jackson still could mean less travel time, rather than wait for an inconvenient departure time and poor connectivity at Atlanta.”

Regardless of what carrier might replace Silver in Greenville, Hattiesburg, Meridian and Tupelo, Jackson will still be the air gateway for those regions, Boyd said in an email.

Fort Lauderdale, Fla.-based Silver filed a 90-day service termination notice with the U.S. Department of Transportation in April. Silver began providing connections service to the four Mississippi airports in October 2012, stepping into the void left

by Delta Air Lines 2011 elimination of 24 routes in smaller markets across the nation.

Silver was awarded the routes as the Es-

Further, the new home is well equipped to meet the revenue agency's operational needs, he added. “We have a lot of requirements for auditors and CPAs” the warehouse building has been unable to meet.

Morale among DOR workers is shooting way up, according to Morgan. In turn, he said, productivity expectations have been raised. “This is an opportunity to continue to raise the bar on what our expectations are from our people. I think you'll see a marked increase in productivity.”

Security for data and records will be greatly enhanced as well, Morgan said.

Accommodating the visiting public will also be easier, he said.

Workers are completing a separate entrance for the public next to Building Two at the south end of the SouthPointe complex. A parking lot exclusively for the public has also been added.

Lastly, Morgan will breathe easier once everyone is out of the building at 1577 Springridge Road. “We took over a building designed to store equipment. It was not made for people.”

Nor was it made to withstand the force of a tornado. Emergency preparedness officials emphasized that point during a visit a while back.

“They suggested that for tornado warnings, we should move everyone to the front of the building,” Morgan said.

“That would make it easier for them to find the bodies,” he said they told him.

Fire and rain — and wildlife The DOR's tin warehouse was a refuge of sorts for birds that nested in its ceiling and for snakes seeking relief from Mississippi's summer heat.

Visqueen has long covered the tops of cubicles to keep out bird droppings and other things that could fall from the ceiling.

Waterbury related in an interview a couple of years ago encountering a

sential Air Service subsidy jumped from about $1.4 million annually to about $2.9 million, the Associated Press reported.

For now, overall load factors and a “very strong” feeder system have Medgar Evers International’s remaining carriers sitting pretty, Boyd noted.

“In the fourth quarter of 2013, Jackson delivered over 90,000 passengers to and from other Delta flights at Atlanta. Ninety percent of Delta Jackson passengers toand-from Atlanta are connecting to other Delta flights. “The figure is over 72 percent for American’s service to DFW (DallasFort Worth),” he said. “The point is that Jackson is a strong revenue contributor to its incumbent carriers.”

Based on an assumption that more flights equal more passengers, Boyd said he expects the airport’s passenger numbers will rise in the third quarter as United and Delta add more seats.

Officials at the Jackson airport say

snake slithering down the hallway outside her office.

She said she reacted by jumping atop her desk and was grateful that a staff lawyer across the hall grabbed the snake and escorted it outside the building.

More recently, workers packing for the SouthPointe move found a three-foot live cottonmouth inside one of the moving boxes. “They're coming in from the wooded area behind the building,” Waterbury said.

“They're just waltzing in.”

Preparations for moving have also brought back memories of the 2003 Memorial Day weekend fire inside the building as staffers cleared away soot that has remained. A battery pack too close to a cubicle caused the fire, Waterbury said. “It lit the cubicle on fire and the whole row of cubicles went with it.”

Soot – the hard to clean plastic variety – covered much of the building when workers returned the Tuesday after Memorial Day. “My office was 40 yards away [from the fire] and I had three inches of soot on top of my desk,” Waterbury said.

In all, soot covered 160,000 square feet of open space. “Everything had to be taken out and scrubbed and brought back in,” she said.

Still, the circa 2003 soot has very much been in evidence as workers have cleared out cubicle areas in recent days, according to Waterbury. “Have you ever dealt with soot from a plastic-based fire?”

It doesn't go away easily, she said.

Back in 1997, the state bought “the smallest and cheapest” cubicle furnishings available, figuring the fixtures would only be used for a couple of years, Waterbury said.

“Seventeen years later they are literally falling a part and are covered with soot,” she added, attributing further damage to the furnishings to storm water that has seeped in from the outside and fallen from the ceiling.

The exploding toilet?

Blame that on a water-pressure backup one winter day several years back, Waterbury said.

“I'm so glad we're going to a place without exploding toilets,” she said.

“We'll have normal size cubicles that are clean, that don't have soot in them, that aren't falling apart and don't have walls that are leaning.”

And we don't have to worry about birds flying over our heads, Waterbury added.

United has already scheduled additional flights to its hubs in Chicago and Houston.

Further, Delta is introducing larger scale aircraft to offer additional services, they say.

At this time, American Airlines and US Airways are completing their planned merger to become the “New American.” Once American Airlines and US Airways merge, airport officials expect that the “New American” will assess the cities it serves and the type of aircraft it is operating.

Both American and US Airways now serve the Jackson airport.

The merger could help Medgar Evers International fill the space vacated by Southwest, according to Gene Moore, airport spokesman. “Representatives from the New American have made inquiries about consolidating the existing American Eagle and US Airways operations in the leasehold currently held by Southwest,” he said last week.

Meanwhile, Jackson is not an attractive candidate for a new airline, according to Boyd. “There are no magic ‘strategies’ to lure more airlines,” he said.

No additional airlines have strategies that fit Jackson, he added.

“This is typical of communities such as Jackson – carriers such as Spirit, JetBlue, Frontier, Virgin America, Alaska all have strategies that do not focus on markets such as Jackson. But the current service is solid.”

Boyd, whose firm does an annual assessment of the U.S. commercial airline sector, said nationally 200 fewer jets will be in service by the end of the year compared to last year.

“That means not only are there fewer airlines in the sky, there are fewer airplanes, too. What is taking place is ‘regionalization’ of air service access – Jackson will continue to be the access point for much of Mississippi,” he said.

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Website: www.msbusiness.com June 13, 2014 Volume 36, Number 24

ALAN TURNER Publisher alan.turner@msbusiness.com • 364-1021 ROSS REILY Editor ross.reily@msbusiness.com • 364-1018 WALLY NORTHWAY Senior Writer wally.northway@msbusiness.com • 364-1016 FRANK BROWN Staff Writer/Special Projects frank.brown@msbusiness.com • 364-1022 TED CARTER Staff Writer ted.carter@msbusiness.com • 364-1017 LISA MONTI Contributing Writer mbj@msbusiness.com • 364-1018

MBJPERSPECTIVE June 13, 2014 • www.msbusiness.com • Page 5

OTHER VIEWS

Bridge maintenance rises as state, national problem

M

ississippians take for granted the safety of the roads and bridges on which they travel, often with daily use, and the need for replacements, upgrades and reconstruction aren’t always readily apparent.

Thousands of structures, however, are deficient, and Mississippians travel across them an average of 1.2 million times per day.

The Mississippi Department of Transportation, which maintains 29,000 miles of highways and more than 5,000 bridges, has been unable to persuade the Legislature of its urgent need to spend substantially on replac-

ing thousands of bridges already labeled for some kind of deficiency. Many of the bridges, not to mention roadways, are simply wearing out from age and use.

It’s instructive to remember that the state’s landmark four-lane highway program was enacted 27 years ago. Some of the surfaces and bridges in that system of corridor roads are worn out. Even more replacements are needed for many other highways and bridges.

MDOT on Monday released a summary of information from a nationwide study, a report of the 2013 National Bridge Inventory showing 13 percent of more than 5,000 bridges maintained by MDOT need re-

placement.

Our state is ranked 10th nationally in the number of structurally deficient bridges and 14th in all kinds of deficient bridges.

The release notes MDOT’s maintenance expenditures: $450 million annually in routine roadway maintenance projects on 135 miles of roadway, sealed on 674 lane miles, reshaping 5,740 miles of unpaved shoulders, applying 3,184 miles of striping, mowing 298,320 acres of right-of-way grass, and removing 9,259 cubic yards of litter.

See VIEW, Page 6

BOBBY HARRISON Contributing Writer mbj@msbusiness.com • 364-1018 TAMI JONES Advertising Director tami.jones@msbusiness.com • 364-1011

» THE OUTSIDE WORLD

» FROM MISSISSIPPI

Chris McDaniel: Mississippi’s next four-decade senator

MELISSA KILLINGSWORTH Sr. Account Executive

melissa.harrison@msbusiness.com • 364-1030 VIRGINIA HODGES Account Executive virginia.hodges@msbusiness.com • 364-1012 TACY RAYBURN Production Manager tacy.rayburn@msbusiness.com • 364-1019 CHARINA RHODES Circulation Manager charina.rhodes@msbusiness.com • 364-1045

By David Dallas

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worked for the Republican Steering Committee in Washington, D.C., during the final throes of the George Herbert Walker Bush presidency after he had broken his no-newtaxes promise. No matter how you read his lips, George the First had betrayed the Reagan Revolution.

He had compromised with Democrats and, now-extinct, liberal Republicans to save the country from the brink of bankruptcy. As a result, the Reagan base did not bother to turn out to vote in 1992 to give him a second term.

A similar group of Republicans, Tea Party Patriots still raising Reagan’s ghost, have chosen not to support Mississippi Sen. Thad Cochran for much the same reason. As that incessant radio commercial asks, “What happened to his Mississippi values?” — suggesting that Cochran has betrayed real conservative values with his compromising support of highway bills and farm bills designed to bring evil government money into our very poor state.

Now, I’ve never been much of a Thad fan, but watching him run yet again for the future of his party, Mississippi and its people, when he could have packed it in and gone home, is probably one of the more courageous moments I have ever witnessed in Mississippi politics. He’s old and he’s tired. That is evident.

Yet, he has fought on in spite of vicious opposition and his own poorly managed campaign.

Certainly, his loved ones would be more than happy for him to come home and simply be appreciated for a successful political career and a job well done.

Cochran has done a good job for our state and our See DALLAS, Page 6

PERSPECTIVE

6 I Mississippi Business Journal I June 13, 2014 » RICKY NOBILE

DALLAS

»BUSINESS AND POLITICS

Most earmarks are hurtful to Mississippi’s economy

F

or me, the U.S. Senate primary (and now runoff on June 24) are a referendum on spending, deficits, debt and earmarks. One side argues that most earmarks are wasteful and have created a culture in Washington of spending and debt (which I agree has been the case), and the other side argues that federal earmarks are good and necessary for Mississippi to get its morethan-fair share of the federal pie, and that earmarks are good for Mississippi’s economy.

But are earmarks really good for Mississippi’s economy?

According to in-depth scientific research, pork barrel spending does not actually help the overall economies where it is sent. Rather, it distorts local economies, stifles competition and reduces the number of jobs offered by private businesses.

A study published in 2011 by Harvard University and the National Bureau of Economic Research examined the performance of private firms after an increase in federal earmarks to a particular state. The data, collected from 1967 to 2008, shows “strong and widespread evidence of corporate retrenchment” in states with a sizable increase in earmarks. Even worse, they concluded that federal dollars “directly supplant private sector activity.”

The study found that while chairmanships of powerful committees do bring increases of earmark spending of around 40-50 percent to the chairman’s home state, the average private business in that state actually “cuts back capital expenditures by roughly 15 percent” and that behavior continues until the member no longer holds that position.

Not only are most earmarks harmful, but with every dollar that a member of Congress earmarks, they trade off their ability to stand up against other wasteful spending. While many Republican members in Washington have taken a stand against earmarks and excessive government spending, unfortunately, too many have allowed, encouraged and even cham-

Joel Bomgar

pioned this continued culture of spending, which has run up our national debt from less than $500 billion a few decades ago to over $17 trillion today. It is hard for someone to turn off the spending spigot if they need to keep it going wide open to allow their earmarks to keep going through. America is drowning in debt and it is time to rein in spending if we are going to preserve America’s great-

ness.

Most earmarks are not just wasteful and harmful, they are also distracting. While a few conservatives were loudly standing up against initial passage of Obamacare in 2010, too many of their colleagues were distracted with home-state projects to be actively involved in the opposition. Wouldn’t Mississippi be better off today if the singular focus of every Republican in 2009 and 2010 was stopping initial passage of Obamacare rather than earmarking projects? If the Republicans had used their time and energy to persuade even a single Senate Democrat to break ranks and vote against Obamacare that would have prevented the Obamacare train wreck even before it happened. And what helped get the votes to pass Obamacare when it came to a final vote? You guessed it … earmarks!

It is time for Mississippians and all Americans to stand up against deficits and debt if we want to preserve America’s greatness. I don’t want to leave our children with an insurmountable mountain of debt and the dependency and lack of self-determination that go with it. I hope you will join me in voting for a future of less spending, less debt, and the financial prudence that will preserve and enhance the freedom, liberty, and prosperity of all Americans. » Joel Bomgar is chairman of the board for Bomgar Corp.

Continued from Page 5

country. But after 36 years, this could very well be the end of the line for the Grand Ole Patron.

Some argue the Tea Party hit its high water mark with its turnout for the June 3 primary. However, they have not yet begun to fight. The negative ads will keep coming, more money will pour into his challenger’s coffers and Chris McDaniel will become the darling of the Koch Brothers and Fox News. Thad Cochran will be decried as all that is wrong with Washington, D.C., and Mississippians will be seeing a lot more of Sarah Palin.

More importantly, the Republican establishment will have to be more cautious now after McDaniel’s strong primary showing. They cannot afford to make him a pariah. Haley Barbour and his lobbying firm will start hedging their bets in preparation for the beginning of the Tea Party takeover of Mississippi’s GOP. It’s a seed Haley helped to sow, and as one of D.C.’s highest paid lobbyists, he will want to remain in the best position to reap.

In the interest of reaping a bit myself, I would like to offer some campaign slogan suggestions to the McDaniel juggernaut as they bring home the victory on June 24. » Vote Chris McDaniel: Because Ted Cruz Needs a Drinking Buddy » Vote Chris McDaniel: We Don’t Need No Stinkin’ Government Money » Vote Chris McDaniel: Sarah Palin Can See He’s an Ass from her Front Porch » Vote Chris McDaniel: The Senator Mississippi Deserves I’ve got a million of them, and my fee is minimal by our new over-priced political campaign standards.

Business groups like the National Chamber of Commerce and National Association of Realtors spent a lot of money trying to defeat McDaniel before the primary. They may have believed he was bad for business before he pulled more votes than Thad, but they will See SENATE, Page 9

VIEWS

Continued from Page 5

MDOT allotted more than $64 million to fund the replacement of 14 structurally deficient bridges across the state, another $3.6 million was used on routine bridge maintenance and $1.1 million was spent on bridge repairs due to vehicle crashes.

MDOT Executive Director Melinda McGrath said, “All of the state’s roads and bridges that were constructed as a result of the 1987 four-lane highway program have a shelf life. With the current level of funding for roadway and bridge maintenance, conditions will get worse before they get better.”

MDOT has not endorsed a particular fix, but the release notes that Secretary of Transportation Anthony Foxx will submit legislation calling for $302 billion in federal spending.

It’s possible some of the proposed fixes will include tax reforms, which usually mean some kind of tax increase in some way, and given the situation, that may be necessary.

The news release doesn’t propose specific solutions, but it offers a reminder that the continued playing of games about spending on bridges and highways is folly and invites serious consequences.

— Northeast Mississippi Daily Journal

June 13 2014

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Mississippi Business Journal

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AROUND MISSISSIPPI

Small step, big victory » Lawrence County lands first out-of-state business in more than a decade

BY WALLY NORTHWAY I STAFF WRITER wally.northway@msbusiness.com

Since taking over as Lawrence County’s economic development officer in March 2013, Jared Evans has been writing letters — thousands of them — trying to lure new business and industry to the South Mississippi county.

“It’s an old-school approach, but it’s the only way I know to do it,” Evans said.

Over the last 15 months, Evans has gotten plenty of rejections, which he expected. But, he also expected the rural county to eventually “land a gold nugget,” and he has not been disappointed.

Last month, Bonaventure Company Inc., a Louisiana-based fire truck and equipment industry supplier, announced it was expanding into Mississippi with a new service/repair and refurbishment center to be located in a pre-existing building in Monticello.

“To better serve our loyal and future customers in Mississippi, Bonaventure is opening a new facility in Monticello. We are excited about our move into Mississippi,” said Nolan LeBlanc, president of Bonaventure, which has been in operation for 20plus years.

Initially, the new operation in Monticello will employ five workers, but that number could double depending on future sales, and the quality of the jobs Bonaventure is offering is important, Evans said.

“The jobs will be well-paying, technical jobs and their sales, service and training aspects will not only be an asset to our community, but it will also promote our town and county on all that they do within our state. People will come here who have barely heard of our town, much less have been here, as a result,” Evans said.

For Lawrence County, that is the issue — to get prospects to at least look at it as a potential site for future business. Making even the long list of prospects has proven a significant challenge.

“I’m 33 years old, and grew up here,” Evans said. “There hasn’t been any new companies like Bonaventure coming into this area in more than a decade. We hope this puts us on the map.”

Lawrence County’s issues are ones commonly seen in rural areas. It lacks the infrastructure and assets to compete with larger communities. The county seat and only

FILE / The Mississippi Business Journal

Last month, Bonaventure Company Inc., a Louisiana-based fire truck and equipment industry supplier, announced it was expanding into Mississippi with a new service/repair and refurbishment center to be located in a pre-existing building in Monticello. town of any size, Monticello, has a population of merely 1,500 or so residents, leaving the county little to offer large companies in terms of potential employees.

It isn’t that Lawrence County leaders haven’t tried to create new jobs, at least on a grassroots level. In fact, Evans is the grandson of Frank C. Allen, a local banker who served along with other local leaders as the area’s quasi-economic development organization. Early efforts resulted in the landing of Georgia-Pacific, which today is Lawrence County’s largest employer.

However, over time the county lost many of its businesses, draining its leadership.

With the exception of Atlas Manufacturing Company Inc., a maker of material handling equipment that is based in Monticello, Lawrence County’s economy today is almost entirely dependent of wood-related businesses such as Georgia-Pacific.

The lack of local employment opportunities has led many higher-skilled workers away from the county.

“There is a perception that we don’t have trained workers here, but I don’t know if that is true,” said Evans, the son of State Rep. Bob Evans (District 91). “We have a lot of folks who work offshore or at places such as the Nissan plant in Canton.” He added that he hopes Bonaventure’s arrival with its above-average jobs will boost the county’s profile among prospective businesses in terms of available skilled workers.

While he is using “snail mail” to pitch prospects, Evans knows the county has to bring a modern effort to job creation. Evans called the county’s old website “horrible,” and the Mississippi State University Exten-

sion Service is currently developing a new

site that should be up and running in a month or so. He is also looking to retool the county’s promotional materials.

While it hasn’t always been easy to swallow all of the rejections, Evans remains upbeat. He pointed out that Bonaventure was looking at putting its new facility on the Coast until Lawrence County came knocking. So, he can laugh at the defeats.

“I wrote a letter to (a company on the East Coast), and not long after that my phone rang,” Evans remembered. “I saw the company on my caller ID, so I got my pen ready to write. But, they were only calling to ask that they be removed from my mailing list.”

Interestingly, one of the “nos” he received gave him encouragement — even vindication for all of his efforts. Not long ago, Evans wrote three gun manufacturers in the hopes of getting them to consider Lawrence County. Only one responded.

“They didn’t just reject Lawrence County, they rejected the whole state, saying they had decided against coming to Mississippi,” Evans said. “So, I called them up to see why.

When I asked them what other economic development organizations in Mississippi had contacted them, they said we were the only one.

“So, we will continue to work at it. I feel like if we can just get people here, see the area and its people, we will be successful.”

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8 I Mississippi Business Journal I June 13 2014 ECONOMIC DEVELOPMENT Courtesy of Natchez Brewery

Crafting a brewery

Husband-and-wife entrepreneurs (pictured left to right, Lisa and Pat Miller) have begun work on their new craft beer brewery, dubbed the Natchez Brewing Co.

Âť Natchez Brewing Co. renovating historic downtown building

BY WALLY NORTHWAY I STAFF WRITER wally.northway@msbusiness.com

If their schedule holds, Pat and Lisa Miller will finally be able to take the word “home� out of the description of their brew before the summer ends.

The husband-and-wife entrepreneurs have begun work on their new craft beer brewery, dubbed the Natchez Brewing Co., in an historic building in downtown Natchez. Renovations on the building at 413 Franklin St. have just begun, but the work is not extensive and the Millers hope to have the brewery in operation in approximately two months. “The building’s interior has exposed wood and bricks, and we want to keep that,� Pat said. “We want our company to pay homage to Natchez’s history as well as be a part of the area’s tourism — help bring more visitors downtown. We probably could have put this in some ware-

2014

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house on the outskirts of town, but we wanted to be here.�

While the Millers are new at entrepreneurship, they are veteran brewers. Pat is a Natchez native who left the area when he was 18 years old for the U.S. Marine Corps.

He subsequently became a military police officer, providing security on Marine One, the presidential helicopter. After his service, he continued his law enforcement career in Washington, D.C., for many until he joined the National Park Service and was transferred to Asheville, N.C. A native of Plymouth, England, Lisa and Pat met in 1998 while he was still in the Marines. After losing touch, they were reacquainted in 2010. Lisa then moved to Asheville in 2012 where Pat introduced her to craft beer, and together they shared the passion to create something that was their own. Soon thereafter, they were married and moved back to Natchez in the summer of 2012 to be closer to family and raise their

three daughters.

Back in Natchez, Pat was surprised to find very little craft beer available, and the couple was thrilled to see the passage of a new state law in July 2012 that raised the legal alcohol content level in beer.

Working from their home, the Millers started brewing, eventually landing on four beers they wanted to bring to market. They are: Bluff City Blonde; Silver Street Pale Ale; Old Capital IPA (India pale ale); and Revival Coffee Porter, made from local Steampunk Coffee Roasters’ “El Pecan� blend of fresh-roasted coffee.

The Millers have since taken their beer to the public, and Pat said they were pleased with the response. Natchez Brewing Co. participated in April at the Hattiesburg Craft Beer Festival, where they rolled out their Revival Coffee Porter, and held a tasting/video presentation at Fat Mama’s Tamales in Natchez last month.

However, it is the response from sales calls that have the Millers optimistic. “When we started this thing, I really worried that we wouldn't get enough accounts,� Pat said with a laugh. “But practically every restaurant and bar around here wants our beer. Now, I'm worried about meeting the orders.�

Still, they face start-up financing issues.

Lack of capital to build out the Franklin

Street building, which dates back to the 1800s, was a major hurdle. The Millers, who spent a year looking for a site before choosing Franklin Street, have funded all work to date out of their own pockets, but they need more funding and don’t want to accrue excessive personal debt.

So, they have turned to Kickstarter, a funding platform for creative projects. The Millers set their Kickstarter campaign goal at $25,000.

The campaign is set to end this week. At press time, the campaign had netted $7,000. However, Pat said he didn’t expect to hit the $25,000 goal, and doesn’t see missing the mark as a lack of support for the Natchez Brewing Co. “I think it is more of a lack of understanding of exactly what Kickstarter is. It’s new, and I feel people have been hesitant to contribute,� Pat said. “I told my own family about it, and they were still confused.�

Undismayed, the Millers are pressing forward, overseeing the renovations and planning for their opening. They are planning on a full-time staff of four with seasonal, part-time help added when needed.

In addition to brewing, Natchez Brewing Co. will offer tastings onsite as well as merchandise.

For more on Natchez Brewing Co., visit www.natchezbrew.com.

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MARKETERS

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 Save time and money Now more than ever, with our busy schedules, hectic lifestyles, and the rising cost of everyday living, we're all looking for ways to enjoy life more while spending less. Gas is expensive. Time is a precious commodity. Congestion and construction on the highway can be a hassle. Why drive all the way to New Orleans, Memphis or Birmingham to catch a ight, when you can save valuable time and money,

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June 13, 2014

ECONOMIC DEVELOPMENT

State trade mission set for trip to Southeast Asia JACKSON — The Mississippi Development Authority will lead a delegation of Mississippi companies on a business development mission to Southeast Asia from Aug. 25-29.

MDA officials say in a news release that the trip will include stops in the Philippines, Singapore and Vietnam.

MDA executive director Brent Christensen says opportunities exist in the region for Mississippi businesses in a variety of sectors, including information technology, agricultural products, medical equipment and more.

MDA works with potential buyers, distributors and businesses from Southeast Asia before meeting with members of the state delegation.

The Small Business Administration-funded Mississippi State Trade Export Promotion program reimburses eligible businesses up to 50 percent of their travel costs and provides interpretation services.

The deadline to register is June 27.

ENERGY

Entergy seeks a new rate plan in Mississippi JACKSON — Entergy Corp. asked Mississippi regulators Tuesday to overhaul the power provider's entire rate structure in a proposal that would generate an estimated $49 million increase in annual revenue.

"This is the first general rate case filing we've had with the Mississippi Public Service Commission in 12 years," CEO Haley Fisackerly told The Associated Press. "Every so often, when you go through a lot of changes, you have to reset."

Changes are likely as the separate Public Utilities Staff evaluates the plan before sending it to the three-member Public Service Commission. The commission must approve the proposal, with Entergy looking to complete that process by January.

— from staff reports and MBJ wire services

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GAMING

Voters view casinos more favorably, industry poll shows » The AGA says the bottom line in the survey is that casinos should not be treated differently than other businesses

By FRANK BROWN I STAFF WRITER frank.brown@msbusiness.com In an attempt to find national political support for the gaming industry, the American Gaming Association Tuesday released highlights of a poll that it says shows voters view gaming more favorably than in previous years.

According to the poll, more Americans embrace gaming, and more Americans believe casinos create jobs and strengthen local communities. It also says a portrait of today’s gambler would look much like that of the average American.

The AGA says the bottom line in the survey is that casinos should not be treated differently than other businesses. In many states casino tax rates are more than 50 percent of their revenues. Geoff Freeman, president and CEO of the American Gaming Association, refers to the high rate as the “tax and torture method” – a combination of punitive gaming taxes and outdated regulations that threaten the industry as competition increases.

Mississippi’s 8 percent state tax and 4 percent local tax are among the lowest rates of the 23 states that have legalized casino gaming.

“Voters recognize that casinos are a mainstream form of entertainment and an economic driver that supports jobs and boosts growth in communities like Biloxi and across the nation,” Freeman said upon the release of the poll numbers. “Casino visitors are a portrait of the American electorate, and voters

ABNEY

applaud Mississippi policymakers for treating casinos like any other business.”

The spread of competition nationwide has contributed to Mississippi’s drop in gross gaming revenues — the money left over when payouts are deducted from wagers — over the last five-toseven years. While the Gulf Coast has shown indications that the market is becoming more stable, the Tunica area — once one of the nation’s top three gaming destinations — remains in a freefall. Harrah’s Tunica, with its three hotels and golf course, closed last week.

Despite the friendly tax rate for casino owners, Gov. Phil Bryant indicated earlier this year that casinos should not expect any additional help from the state. “I don’t see anything more we can do,” he told The Clarion-Ledger last March. “There’s political resistance, so it’s unlikely we can do more than that. It’s a market that moves with the economy and with competition.”

The poll highlights show that American voters view casino gaming favorably by a 2-to-1 margin, that more than 70 percent recognize that casinos create jobs, nearly 60 percent know casinos boost local economies and a majority says casinos should pay more taxes than other businesses.

The poll says the average casino visitor is a homeowner and earns between $60,000 and $99,000 annually. Half are college graduates, twothirds attend church regularly and most fall in the 21-59 age group.

When asked during Tuesday’s conference call

Continued from Page 3

emerging markets such as China, Vietnam and India and becoming a logistical partner in trade that develops between the emerging markets.

“We’re connecting customers anywhere in the world,” he said, predicting an explosion in the growth of middle-income earners over the next 20 years in emerging-market countries.

Abney said he is unsettled, however, by growing support for trade

Continued from Page 6

not run the risk of alienating him further before a run off.

Would they send money his way? McDaniel has likely cashed the check already.

To be fair, young Chris McDaniel might get up to Washington and grow on the job, become a fine Senator, the Tea Party Flag Bearer saving our state and nation from imminent peril. Political races have always been urgent, ugly and tough. The key is to get elected since the work of the government in some form, big or small, must go on.

Contrary to what those Chicken-Little Republicans may scream, the sky is not falling: a victory by McDaniel on June 24 does not give Travis Childers any more of a chance to win. There is little danger of Childers becoming our first Democrat in the U.S. Senate since John Stennis, no matter how many guns he totes. This is a Red State

to break down wide-ranging age group, pollsters said 37 percent of visitors fall in the coveted 21-39 age group.

Convincing younger casino players to play slot machines, which are more profitable to casinos than table games, is an issue confronting casino operators.

Nearly two-thirds of survey respondents said they visit casinos for the same reasons they enjoy other entertainment, like shopping, going to a ball game, or attending a concert: to “have fun and socialize with friends and family.” Nearly threefourths of visitors set a budget before they walk in the door, the poll found.

“When people in Mississippi visit a casino, they set a budget — whether they’re gambling, shopping, eating at a restaurant, or taking advantage of one of the other mainstream forms of entertainment our casinos offer,” State Rep. Bobby Moak, D-Bogue Chitto, the first chairman of the House Gaming Committee, wrote in a statement.

“Our residents are hardworking, people who maintain a retirement savings account and serve on their children’s Parent Teacher Association or coach their Little League team — and they also have a little fun at our casinos, too.”

The national telephone survey was conducted May 17-22 by Democratic pollster Mark Mellman, CEO of the Mellman Group, and Republican pollster Glen Bolger, founder and partner of Public Opinion Strategies. It included a national telephone survey of 1,000 registered voters (with margin of error of 3.1 percent), and an oversample of up to 560 of those who have attended a casino in the past year (margin of error of 4.1 percent).

protectionism in the United States and the government’s hesitancy to enact new free trade agreements.. “People are trying to protect jobs,” he conceded, but added: “A message that we have in Washington is that the United States is only 5 percent of the world’s population. If we start putting in protective measures, then we are limiting our markets.

“Can we reach these emerging markets and the emerging middle class? These trade agreements are so important” to ensuring that happens, he said.

It is “such a worry,” Abney added, “that our government is not looking at the value of global trade.”

and, as McDaniel’s victory indicates, turning Blood Red by the minute.

It is a shame that the GOP establishment did not encourage others to consider running in this vitally important election or, at the very least, ensure that Cochran was ready to run a rough campaign. Even Haley Barbour, who is not helping Cochran for free, admitted in an interview with the Huffington Post, that Cochran did not have “an active political operation” and that they were “trying to ramp something up.” Haley excused himself, “you can’t just get to 30,000 feet over night. It takes time.” Well, he’s got three weeks left.

Haley, of course, would have won this Senate seat handily, regardless of how many prisoners he’s freed. Why he didn’t run is vexing.

Our current Secretary of State is our best candidate for the U.S. Senate, but he also decided not to run. Delbert Hosemann is a Republican even a Yellow Dog Democrat

could vote for. Thoughtful and deliberate, Hosemann speaks more like a genuine public servant than a political grandstander. While he has served mostly in executive capacities, Hosemann has the makings of a true Statesman, reminiscent of another of our State’s more soft-spoken and thoughtful executives, former Gov. William Winter.

Winter lost out on his only bid for the United States Senate, defeated in 1984 by Thad Cochran who had already served a six-year term.

If McDaniel wins on June 24, the Tea Party will gain the foothold it needs and he will become the establishment candidate. We can all hope he performs well and for the benefit of the entire state. No doubt, he will be there for quite some time. » David Dallas is a political writer. He worked for former U.S. Sen. John Stennis and authored Barking Dawgs and A Gentleman from Mississippi.

June 13, 2014 • MISSISSIPPI BUSINESS JOURNAL • www.msbusiness.com

AN MBJ FOCUS:

LAW & ACCOUNTING

Building on the cutting edge

Baker Donelson’s is expected to break ground in July on its new five-story building in the District at Eastover.

Drawing courtesy of Baker Donelson

» Law firm’s new offices are expected to reflect company’s mission, image

By BECKY GILLETTE I CONTRIBUTOR mbj@msbusiness.com

The Baker Donelson law firm expects to break ground in July on its new buiding in the District at Eastwood, not far from where the firm is presently located in northeast Jackson.

“We have a great space now in two buildings that are connected by a walkway,” said Bill Painter, managing shareholder of the Jackson office of Baker Donelson.

“But we wanted all the attorneys in one building together. Additionally, working with Holder Properties, the developer of our new building, One Eastover Center, we Painter were able to participate in the design of the building to be as efficient as possible and to accommodate a floor plan that will provide the flexibility and cost effectiveness required for the law firm of tomorrow.”

Ground breaking is anticipated in July for the five-story building in Eastover that will have the top three floors devoted to Baker Donelson.

“Our goal here is to build the law offices of the 21st century using a contemporary law office design,” Painter said. “There will be a lot more technology, more focus on the individual environment, more interior light and less emphasis on traditional law firm features such as wood walls, long corridors and multiple office sizes.”

Those concepts mirror the company’s mission and image since it has begun operation in Jackson and the way the company has operated in Jackson and in 20 other Baker Donelson offices across the country. The way it has pioneered the management of legal proj- Rueff ects has also been adopted at law firms throughout the country.

“We are on the cutting edge in the legal profession in a number of areas, including legal project management,” said Painter.

“We are one of the leaders in the profession in this area. The head of our office of legal project management, David Rueff, has co-authored the definitive book on this

issue for the American Bar Association.

We have a patent pending system for legal project management we call BakerManage.

The whole idea is to be more efficient and cost effective in the delivery of legal services using traditional project management principles applied to what lawyers do.”

Painter said BakerManage is a much more disciplined way of undertaking a legal engagement that involves being more efficient delivering legal services through highly effective communication with a client, tracking the budget and managing the process in a much more Smith proactive way.

“For a lot of lawyers, this is new stuff, but more and more law firms are getting interested in it,” Painter said. “We started to look at this issue four years ago. Now we are basically training other law firms in these techniques. David teaches this at the Mississippi School of Law, and speaks about it around the country.”

Rueff, a shareholder and the firm’s proj-

ect manager for the Jackson office of Baker Donelson, co-authored with Susan Raridon Lambreth the book, The Power of Legal Project Management, A Practical Guide, published by the ABA in 2014.

“In 2008 to 2010, there was a big shift in the marketplace,” Rueff said. “Corporate clients were feeling budgeting pressures, and those pressures trickled downhill to counsel. Corporations were looking for ways to get better predictability such as alternative fees.

Our firm identified legal practice management as a way for us to better estimate the cost of legal services by doing a much more thorough analysis, developing relative budgets for alternative fees and then managing to that budget.”

At the time, there were no tools or guidelines for implementing legal practice management in law firm environments. So, in 2010, they did an analysis of traditional project management in construction to see See

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A job you can count on? » Employment outlook appears good for Mississippi accounting graduates

By LYNN LOFTON I CONTRIBUTOR mbj@msbusiness.com

School’s out and accounting graduates — like all graduates — are looking for employment. What’s the status of the accounting job scene? Three accounting professionals from different backgrounds are optimistic about accounting jobs.

Beth Burgess, CEO of the Burgess Group and current president of the Mississippi Society of Certified Public Accountants, has spent her career in public accounting since age 20.

“I think the market is good. I am being contacted more frequently by businesses with job openings for accountants,” she said. “More firms and companies seem to be hiring accountants this year. The great thing about an accounting degree is the flexibility offered with career choices.

Many graduates go into public accounting but there are also opportunities in other areas with large and small businesses, education, banking and government. Everyone needs an accountant. Even if a graduate wanted to start their own business, having an accounting degree is invaluable.”

Karen C. Moody, a CPA for 30 years, is director of accounting for Lampton-Love, Inc. and will begin a term as president of the MSCPA on July 1. She worked in public accounting eight years and says they were exceptional years. “I recommend that career path to accounting graduates as it allows them to explore and discover their true interests and make business contacts,” she said. “I was fortunate to be

BAKER

Continued from Page 10

how it would work in the legal world.

“We realized we had to come up with something unique for legal practice management, so we came up with a process called BakerManage,” Rueff said. “In 2011 Baker Donelson was the first firm in the U.S. to create and implement legal practice management principles. As we went through that process, we realized that it should be used not just in fixed fee arrangement where the firm’s dollar was at risk, but that it also needed to be implemented in hourly billed rates to be more efficient.”

Rueff said BakerManage helps the firm create resources that allow their attorneys to do a better job practicing law.

“It involves a much more thorough plan of the case that is verified with the client and legal team,” he said. “That evolves into a budget for the case and then that budget

offered the position with Lampton-Love, Inc., one of my clients, and the past 25 years here have also been exceptional and fulfilling.”

Steve Jackson, Ph.D., CPA, is an associate professor in the School of Accountancy, College of Moody Business at the University of Southern Mississippi.

“I think this year is one of the best we have had for placement of our accounting grads,” he said. “Over the last few years we have seen an increase in the number of students finding jobs.”

He sees more options available. On the Coast these positions include accounting work with casinos and growth industries such as ship building. “Accounting degrees are flexible in that managerial traineetrack-type positions also look at accounting graduates,” he added.

When Burgess graduated, it was basically engrained that the only “real” accountants were the ones who worked in public accounting. “Obviously, that is not true and Mississippi is blessed with thousands of CPAs working in all facets of business,” she said. “I think the best change that has been made in the last 30 years is the flexibility offered with accounting positions. In 1980, everyone was expected to work the hours that were set. Very little or no flexibility existed with how and when these hours could be worked. Part time accountants were treated as second class citizens.

“Now, men and women alike are given the flexibility to spend time with their families and get their work done around family activities and responsibilities. The job demands are certainly still there but there are more options Burgess for how and when the work is done.”

Burgess feels technology has allowed great advancement of how and when work is completed. “Many firms and offices allow telecommuting which allows employers to retain valuable employees who work too far to commute on a daily basis or need to care for children or elderly parents at home,” she said. “My firm is composed of all women. All of my six employees work a reduced schedule to fit their personal or family needs. Thankfully, they are all professional enough to get their work done timely.”

Moody agrees that the accounting field is more diverse now in public and industry practice. “I understand the universities are pleased with the placements of their accounting graduates this year,” she said.

“Those graduating with Masters degrees have fulfilled the requirement of 150 additional course hours to sit for the CPA exam. They have secured jobs at national, regional and local firms. Industry hires will lag as business owners continue to evaluate the economic recovery and the effects of new legislation.”

Asked about the most lucrative positions for accounting majors, Moody said, “In today’s environment, I think working in industry allows more opportunity to fulfill lifestyle demands.”

Jackson has been a CPA 41 years. He practiced with a large international firm in Seattle and privately in Montana and Alaska before entering higher education.

“Most of the feedback from our alumni is very encouraging. They are getting promoted and some are moving into other fields and seem to be doing well,” he said. “We have worked hard to increase the quality of our accounting graduates in the last five to seven years and are now seeing more interest in our students from firms that were not looking at our graduates in the past. We also have an active internship program which has opened more possibilities.”

Burgess recently spoke to a group of students who were about to graduate.

“I told them two main things: one, you can’t have it all. There will be sacrifices made on every level of your career. Make sure to choose wisely,” she said. “Two, success can be defined in many ways. Each person’s success is different. For me, it’s not all about the money but more about the satisfaction I receive for doing a good job and helping others.”

Moody says it’s important for Mississippi firms and businesses to be competitive in the hiring market to retain these accounting graduates. “They are our future.

Many of this year’s graduates have taken jobs out of state,” she said.

gives clients an expectation of what their spend is going to be. Attorneys have been doing budgets for years, but have not had the tools to manage those budgets.

Rueff worked with the firm’s technology management office to develop the technology used to implement BakerManage. Microsoft Sharepoint is the platform they built it on.

In 2012, the International Legal Technology Association gave Baker Donelson a Project of the Year award for the implementation of a legal project management office and development of BakerManage.

Rueff said it is highly significant that Baker Donelson is able to provide this service without any cost to the client.

“Additionally, the costs for Microsoft Sharepoint are also not charged to the client,” Rueff said.

“I think that is very innovative and a huge credit to the firm’s management to provide tools to improve communication and man-

agement of the case without charging clients for it.”

Lawyers for the past 40 years have billed principally by the hour.

“But we are finding many of our clients want alternative pricing strategies, such as fixed fee engagements, or blended fee engagements or other types of pricing structures,” Painter said. “We have an entire pricing team working on alternative pricing to be more efficient and cost effective for our clients. It also requires that we be more efficient. I compare alternative pricing for legal services to building a house. You go to a contractor and tell him you want to build a house. Do you cost plus? A fixed fee? A not to exceed price? Or some other kind of approach? It doesn’t matter to us. We will build this house to your plans.”

Baker Donelson is the 110th largest law firm in the country, and the largest firm in Mississippi regarding the total number of attorneys in the firm, 700, and the second

largest in the state based on number of lawyers in the state, 80. There are 160 support staff in Jackson, as well. Fortune magazine has named the firm one of the Top 100 Places to Work in the country. Only three law firms are on that list and Baker Donelson is the top law firm.

Tricia Stevens Smith, Jackson office administrator, said there are many factors that go into the firm wide award as one of the Top 100 Places To Work. Smith said one factor is that employees focus on supporting each other and working together to reach the goal of giving the best service they can to their clients.

The Jackson office of Baker Donelson does public policy work including representing state and local governmental authorities and agencies. It is involved in a lot of bond financing activity. It also does extensive work in tax law, health care, transportation, environment, white-collar crime, construction and anti-trust work.

12 I Mississippi Business Journal I June 13, 2014

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NEWSMAKERS

16 I Mississippi Business Journal I June 13, 2014

Firm welcomes McLaughlin Turnage made partner

Ramey welcomes new-hires

MCUA elects board, presents awards

Baker Donelson has added Matthew P. McLaughlin to the Jackson office. McLaughlin joins as of counsel and a member of Baker Donelson’s Corporate/Mergers & Acquisitions Group.

A 2002 graduate of the Mississippi College of Law, McLaughlin also received his master of laws in taxation from the University of Florida FredMcLaughlin eric G. Levin School of Law in 2003. He has been recognized in Mid-South Super Lawyers as a “Rising Star” since 2009 and has been listed in The Best Lawyers in America since 2013 in the area of economic development law.

McLaughlin serves on the board of directors for the Greenwood Cemetery Association and for Team Jackson, and is co-chair for Attorneys for the Cure 2014. He is a member of the Hinds County, Mississippi and American Bar Associations and of the Mississippi Creative Economy Task Force.

The Ramey Agency recently welcomed new-hires Katherine Capocelli, Emily Cutrer and Joshua McCrary. Capocelli, originally from Richmond, Va., earned her bachelor’s degree in mass communications/business and master’s degree in brand management at Virginia Commonwealth University. Before joining Ramey, she worked at Moroch and AKQA. She has joined Ramey as an account supervisor.

Capocelli Cutrer is from Gulfport and graduated from the University of Mississippi with a degree in marketing communications and public relations. She interned at Calvin Klein and worked at Alison Brod Public Relations, both in New York City. She now holds the position of associate account executive at Ramey.

McCrary is a native of Cutrer Huntsville, Ala. He attended the University of North Alabama and the Miami Ad School. Prior to working at Ramey, he was a creative intern at Digitas San Francisco, MRY New York and Greenlight Media and Marketing Los Angeles. He is now the associate art director at Ramey.

Capocelli, Cutrer and McCrary will be located at Ramey’s Jack- McCrary son office in Fondren.

During its annual meeting, the Mississippi Credit Union Association announced its new board and credit union awards and recognitions were presented.

Four MSCUA directors were re-elected to three-year terms. They are: Billy Bridges, Mutual CU; Steve Pollman, Magnolia FCU; Elmer Dickens, Gulf Coast Community FCU; and Brig Gen Richard Moss (Retired), Keesler FCU. Elected to fill un-expired terms were Chris Hammond, Central Sunbelt FCU (twoyear term) and Kathy Scarbrough, Navigator CU (one-year term).

The MSCUA board officers are: chairman James B. Smith Jr., Singing River FCU; vice chairman Billy Bridges, Mutual CU; treasurer Ray Scott, USM FCU; and past Chairman John Gibbons, Triangle FCU During the event, four individuals were given the state’s highest honor, induction into the Mississippi Credit Union Hall of Fame. They are: Lonnie Boykins, director, Mutual Credit Union (38 years of service); James Dewey, director, Gulf Coast Community FCU (41 years of service); Charles McNair, director, Magnolia Federal Credit Union (38 years of service); and James Ware, director, Gulf Coast Community FCU (41 years of service). Recognized for being nominated for Mississippi Credit Union Hall of Fame induction consideration are: Lionel Blum, Gulf Coast Community FCU; Dennis Florreich, Meridian Mutual FCU; Joe Krebs, Navigator CU; and H.C. “Bunky” Partridge, Meridian Mutual FCU. Kaye Ray, Central Sunbelt FCU, was recognized for her service on the MSCUA board of directors.

Tricia McMullen, MSCUA executive assistant, was recognized for 15 years of service with the association.

Elizabeth Edmondson, credit union development specialist, was recognized for seven years of service with the association.

William Bynum, Hope FCU CEO, was recognized for his 2014 induction into the Credit Union House Hall of Leaders.

Alcorn makes appointments Alcorn State University has appointed Dr. Donzell Lee as interim provost and vice president for academic affairs and Dr. John Igwebuike as interim associate vice president for academic affairs. Lee began his career as an instructor of music in the Department of Fine Arts and progressed quickly through the professional ranks, distinguishing himself as a professor and scholar, earning the rank of tenured professor early in his career. In 2006, he was appointed interim vice president for Academic Affairs and most recently, he served as vice provost for Academic Affairs and Graduate Studies.

Igwebuike joined Alcorn in 2001 as an assistant professor in the School of Business. He played an important role in the institution’s attainment of three major milestones: SACS Reaffirmation (2011) as coassistant to Lee; NCAA Recertification (2012) as NCAA Faculty Athletics representative; and ACBSP Accreditation (2013) as associate dean of the School of Business.

Also, Alcorn has selected Emanuel Barnes Sr. to lead the Division of Student Affairs as its newly appointed vice president. Barnes began his Alcorn career in 1975 as a residence hall director in the Division of Student Affairs. In 1985, he served as an admission counselor/recruiter and was promoted to associate dean of students in 1988 and dean of students in 1989.

In 1993, he held the position of director of admissions and recruiting and most recently, served as the deputy provost for student services. Barnes earned both his bachelor of science and master of science in education from Alcorn. He is married to the former Sandra L. Williams, and they have five children.

Trustees choose Montgomery The board of trustees of Chamberlain-Hunt Academy has appointed Jim Montgomery as president of the school. A resident of Memphis, Tenn., and graduate of the University of Alabama, Montgomery has also served as president of Memphis-based Telelink Inc. He and his wife, Beverly, will be relocating to Port Gibson.

Edward “Trey” Turnage III has been elected partner in BKD’s Jackson office. Turnage was one of 14 people elected to the firm’s partnership and the only new partner in BKD’s Jackson office.

Turnage has more than a decade of experience assisting public and private financial institutions with audit and attestation services, directors’ examinations, internal audit Turnage procedures, loan reviews and consulting services. He is a member of the American Institute of CPAs and Mississippi Society of Certified Public Accountants.

Turnage is a 1995 graduate of the University of Mississippi with a B.S. degree in accounting and an M.Acc. degree.

Coleman dies at 84 Retired Circuit Judge William F. Coleman, 84, died May 31 at his Madison home. Although he retired from the Hinds County Circuit Court bench 18 years ago, Coleman continued to hear cases as a senior status judge, accepting appointments from the Supreme Court to cases in which local judges recused themselves.

Coleman served for 20 years as a circuit court judge of the Seventh Judicial District. Former Gov. Cliff Finch appointed him to the bench on Oct. 1, 1976.

He was senior judge of the four-judge district at the time he retired in 1996. In addition to handling a crowded docket and numerous high-profile cases, he was instrumental in creating a public defender office for Hinds County, and he supported a statewide court administrator system. He oversaw the remodeling of the Hinds County Courthouse in Jackson.

Coleman was born Sept. 19, 1929. He attended Millsaps College and Mississippi State University. He earned a law degree from the University of Mississippi in 1952, and was admitted to the Bar that same year. He practiced law in Jackson from 1960 until his appointment to the bench.

Garner joins board Metropolitan Bancgroup Inc. has added E. Jackson Garner to its board of directors. Garner, a native of Grenada who currently resides in Jackson, served as CEO and chairman of the board of Union Planters Bank–Central Mississippi and previously held the same positions with Sunburst Bank after moving from Grenada to Jackson in 1990. Garner retired from his 30-year banking career to join The Ramey Agency, a brand strategy and marketing communications firm, as its president in 2001.

Garner currently serves as a trustee of the Mississippi Department of Archives and History, the Mississippi Humanities Council and the Mississippi Museum of Art. He is a former chairman of the Mississippi Symphony Orchestra Association, United Way of the Capital Area and Mississippi Museum of Art. He was president of the Grenada County Chamber of Commerce and trustee and member of the board of the Grenada Municipal Separate School District.

He was in the inaugural class of Leadership Mississippi and was also a member and trustee of Leadership Jackson. He is a graduate of the University of Mississippi and the Harvard University School for Senior Bank Officers.

Telapax selects McBride Telapex Inc. has named Chuck McBride as its senior vice president-legal and general counsel for Telapex and C Spire. McBride serves as the company’s chief legal counsel. Prior to joining C Spire, McBride was in private law practice for more than 22 years and was a partner at the Jackson law firm of Brunini, Grantham, Grower & Hewes, PLLC, where he also served as a member of the firm’s board of directors as well as chairman of McBride the Litigation Department.

McBride is admitted to practice in the state of Mississippi, United States Courts of Appeal for the Fifth Circuit and Second Circuit, United States Tax Court and the United States Supreme Court. He has been recognized in Best Lawyers in America in the areas of communication law, commercial litigation and litigation-intellectual property, Peer Rating of AV Preeminent for Ethical Standards and Legal Ability by Martindale-Hubbell and recognized as a 2013 IP Star by Managing Intellectual Property Magazine.

A native of Louisville, Ky., McBride served on active duty with the U.S. Army as first lieutenant, ordnance from 1985-1988. He is a graduate of the University of Mississippi School of Law, where he received his J.D., magna cum laude, and Mississippi State University, holding a B.S. in industrial engineering. He is a member of the Mississippi Bar Association, Bar Association of the Fifth Federal Circuit, Defense Research Institute, Mississippi Defense Lawyers Association and American Bar Association.

McBride volunteers with the Rotary Club of North Jackson and Mission Mississippi, Madison County. He is married to Mary Allen McBride and they have three children.

Ammann elected to board Dennis Ammann, CEO and president of Peoples Bank, has been elected to the board of directors of the Mississippi Bankers Association. A Mendenhall resident with 15 years of banking experience, Ammann worked with the Federal Deposit Insurance Corporation in Memphis, Tenn., from 1991-1999. He came back to work as vice president at Peoples Bank in 1999., and was promoted Ammann to CEO/president in 2010.

Ammann graduated from the University of Mississippi with a bachelors in business administration) as well as the Graduate School of Banking at LSU and Academy of Professional Banking.

He serves on the board of Simpson County Economic Development District, and is past president and director of Simpson County Development Foundation.

He also serves on the board of the Mendenhall Sports Club and is a deacon at First Baptist Church.

Ammann and his wife, Sharon, have two sons — Steven, 13, and Seth, 10.

For announcements in Newsmakers; Contact: Wally Northway (601) 364-1016 • wally.northway@msbusiness.com

June 13 2014

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Mississippi Business Journal

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17

» MISSISSIPPI LEADERS by Martin Willoughby

Challenged, inspired by our leaders

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n the last five years that I have been writing this column on leaders, I have had the incredible opportunity to visit with leaders from around the state of Mississippi. I have been challenged and inspired by their stories. Each week I try to pass along the tips and wisdom I learn from these leaders. As readers have probably noted, I try to focus on at least one big idea that came from the interview.

When I talk with prospective interviewees, I emphasize that the purpose of this column is to inspire and motivate other leaders around the state. I do this because I believe leadership matters – in a big way. It is hard to understate the importance of leadership in an organization. Unfortunately, we talk about leadership so much in the business community we can sometimes take it for granted. However, as Dr. John Maxwell said, “Everything rises and falls with leadership.” The longer I live, the more I believe this to be true. Below are just a few of the big ideas that I have seen as recurring themes in my study of outstanding leaders.

Leaders lead While this is stating the obvious, the point is that leaders take initiative. They don’t wait for a title. They see a need and act on it.

When the call goes out for help, they are the first to raise their hand. Leadership is about serving. There are countless ways in every organization to step up and serve.

True leaders are servant leaders and are not in it for their own glory. For those wanting to rise in their leadership, I encourage you to begin today by seeking ways to contribute and add value. Titles will follow – leadership can begin immediately.

Leaders know themselves The ancient Greeks used to emphasize the importance to “Know Thyself.” One of the key aspects I have noticed about effective leaders is that they know who they are.

They are comfortable in their own skin and have a quiet confidence. They know their strengths and weaknesses and know how to play to their strengths and minimize their

weaknesses. They are self-aware. Effective leaders don’t waste time trying to be something they are not. Authentic leadership comes from the heart. People follow that kind of leader.

Leaders lead themselves Former IBM Chairman and CEO Thomas J. Watson Sr. noted, “Nothing so conclusively proves a man’s ability to lead others as what he does from day to day to lead himself.” Similarly, Dr. Maxwell pointed out, “Learning to lead yourself well is one of the most important things you’ll ever do as a leader.” It is easy to think about leadership in terms of leading others.

While that is certainly important, true leaders begin by effectively leading themselves. They realize that they must continually be growing as a leader if they are to be effective. True leaders know they need to take care of themselves physically, emotionally, intellectually, and spiritually. They are continual learners. Allowing yourself to become burned out does not help the

cause of your organization. I believe that leaders who develop a lifelong commitment to growth and proper boundaries are the best suited to make a difference for the long haul.

Martin Willoughby I hope a few of these leadership lessons I have learned from my interviews will be an encouragement to you in your own leadership journey. Leadership is a journey, not a destination. May your journey continue to be a great one! I will continue to share leadership insights from outstanding leaders as we continue this journey together.

Martin Willoughby is a business consultant and regular contributing columnist for the Mississippi Business Journal. He serves as Chief Operating Officer of Butler Snow Advisory Services, LLC and can be reached at martin.willoughby@ butlersnow.com.

“Everything rises and falls with leadership.”

— Dr. John Maxwell

Stories of entrepreneurial Mississippians are inspirational

M

» Mississippi Entrepreneurs

By Polly Dement University Press of Mississippi $37.00 cloth back

ississippi Entrepreneurs could be classified as a coffee table book since it's bound with cloth and has a beautiful Mississippi River scene photo on the dust cover, and has content suitable for browsing. However, it's more than a coffee table book. It's something of a history of business in Mississippi and, more importantly, full of inspiring stories of 72 people from every region of the state and all manner of endeavors.

“We wanted every part of the state to be represented,” said author Polly Dement.

“It also includes entrepreneurs in creative and social issues; not just business people.”

These stories draw attention to the tenacious and courageous journeys of Mississippi men and women who risk fortune and futures to create successful enterprises.

Most tell “how they did it” in their own words, bringing to life their entrepreneurial spirits. Family members and former colleagues pick up the story line for legendary entrepreneurs who have died, recalling vividly the characteristics that set them apart from the competition.

The stories illustrate common traits, including plentiful vision, fierce drive, willingness to take risks and change for a better way, the ability to innovate, solve problems, and turn luck to advantage. Photos also help tell the stories.

The first story in the book begins literally at the southernmost tip of Mississippi with Biloxi's Victor Mavar, Sr. whose parents immigrated from Croatia to establish themselves in the Coast's seafood industry. Island View Casino owner Rick Carter, builders Roy Anderson, Jr. and Bill Yates, Jr., produce growers Allen and Janice Eubanks, Billy and Linda Howard of Howard Industries, John Palmer and Joel Bomgar, Hartley and

Mary Peavey, and the late Choctaw Chief Phillip Martin are among the varied entrepreneurs whose stories are included.

Independent bookstore owners John Evans and Richard Howorth are included, along with chef Robert St. John, restauranteur and arts patron Malcolm White, and artists Erin Hayne and Nuno Goncalves Ferreira. Social and cultural entrepreneurs include Martha Bergmark, who focused on social justice, Aaron Shirley who focused on access to health care, and Jack Reed, Sr. who focused on public education.

The author, Polly Dement, was reared in Vicksburg and graduated from Millsaps College. She worked in Washington, D.C., for many years, including work writing profiles of the witnesses who testified before the Senate Watergate Committee. She now lives in Santa Fe, N.M. Seetha Srinivasan, former executive director of University Press of Mississippi, served as book project director.

— Lynn Lofton, mbj@msbusiness.com

18 I Mississippi Business Journal I June 13 2014 THE SPIN CYCLE

Time – Like other media outlets in our digital world – blurs line between news and advertising nother media outlet has bitten the dust, and blurred that time-honored line between the news and advertising side of journalism – featuring ads on the front page/front cover.

Time Inc., the nation’s largest magazine publisher, is now running Verizon Wireless ads on the cover of two of its most iconic titles, Time and Sports Illustrated. The ads are tiny, but their arrival puts a big crack in the longstanding tradition that kept ads off magazine covers.

The industry’s major players have until now almost entirely resisted pressure to sell cover ads, despite a strong need for new revenue in recent years. That’s partly because ads on covers violate widely-observed guidelines from the American Society of MagaTodd Smith zine Editors, but also because most editors believed in those guidelines, which are meant to emphasize and protect editorial independence from marketers.

The Time and Sports Illustrated cover ads, which are likely to both arouse consternation and encourage others to follow, come soon before Time Inc. begins trading on the New York Stock Exchange as a public company, spun off from Time Warner, to fend for itself.

They were originally scheduled to run in early May on Time’s annual Time 100 double issue, which featured Beyonce on the cover, but complications with that plan delayed them until the May 27 issue. Sports Illustrated hit with cover ads on June 2.

For now the area devoted to the ads is very small: subscribers may notice a Verizon logo in the mailing label area, next to the words “For Best Results Use Verizon” and a page number for a traditional ad. Newsstand copies will print the ad by the bar code, although there won’t even be room there for the page number of the interior ad, according to a Time Inc. spokeswoman.

But, Time Inc. has pitched media buyers on ads that would run across the bottom of its magazines’ covers, according to people who have seen mockups. The company is also shopping around a “native placement” ad for the table of contents. As editorial territory, the table of contents is also usually considered off-limits to ads.

Other magazines have experimented with ads that involved covers to varying degrees. Conde Nast, for instance, attached full-page promotions for Microsoft’s Windows 8 to covers of 14 titles in 2012. The company claimed they weren’t paid ads for Windows 8, but unpaid promos for Windows 8 content that were merely “coordinated” with a massive paid campaign.

And Scholastic Parent & Child began selling ads directly on its covers in 2009, promoting brands such as Juicy Juice, SunnyD Smoothies and PediaSure. But a publishing company of Time Inc.’s size and stature hasn’t previously sold ads directly on its covers.

Time executives spent time recently on a road show to drum up interest among investors. Their pitch involved showing that Time Inc. – which has seen revenue declines

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Image from SI 6/2/2014 cover

consistent with the print industry – is willing to experiment with new advertising products.

Cover ads will likely be listed on Time Inc. rate cards, which give the stated cost of various ads in the company’s magazines.

First-quarter ad revenue at Time Inc. was essentially flat at $390 million, with overall revenue climbing 1 percent from the quarter a year prior to $745 million. But much of For now the area devoted to the ads is very small: subscribers the growth stemmed from its acquisition last year of Amer- may notice a Verizon logo in the mailing label area, next to the words “For ican Express Publishing, which includes the luxury titles Best Results Use Verizon” and a page number for a traditional ad.

Travel + Leisure and Food & Wine. Minus the additional cash from those titles, revenue would have fallen 5 percent, with in technology, but Cisco’s chief technology officer is all ad sales down 7 percent. about the arts in her social efforts, from Banksy to biker jackets to – well, binary code. (Two out of three ain’t bad.)

Fortune Social Register Ranks Most 10. Tim O’Reily: If you’re in the technology business, it feels Influential Executives On Social Media as if the O’Reilly Media CEO is always watching. And he is.

Fortune has launched its inaugural annual Social Register, Follow him for measured thoughts on business models, inpicking the most experienced, active, influential, and fol- dustry culture, and alpha geekery. lowed members of the business community. Call them socialites; call them social butterflies. Here’s the Top 10: 1. Bill Gates: The Microsoft co-founder has always been a Golden Mic | GM CEO Mary Barra, technophile, and it’s no surprise that he’s an active Twitter Owning Up To Auto Maker Crisis Stepping forward to publicly address faults in ignition user. But he shines when tweeting figures about the philswitches that were linked to 12 deaths when GM car enanthropic issues that are near to his heart, from rural gines and power suddenly switched off, CEO Mary Barra poverty to urban education.

2. Oprah Winfrey: Chief executive of the cable television has earned solid reviews from peers and management exnetwork that bears her name, Winfrey demonstrates that perts. She held a press conference and met with reporters to she can excite her community without the need for a day- apologize, is cooperating with regulatory authorities, and is trying to manage reactions from GM employees, customers time talk show. Call it a #lifeclass in staying relevant.

3. Richard Branson: It comes as no surprise that the social and shareholders.

Having been in her CEO role only since Jan. 15, Barra has accounts of free-spirit Virgin Group co-founder Richard pledged to fix the faulty ignition switches and launch an inBranson are filled with spaceship riding, deep-sea diving, vestigation to explain why the automaker failed to correct a and – wait, was that a picture of him kite-surfing with a problem that it knew existed for 10 years. model on his back?

Companies that are not being open and taking responsi4. Russell Simmons: They called comedian Henny Young- bility are a big reason for public distrust of corporate Amerman “King of the One-Liners.” You could call the Def Jam ica. Conversely, “by being proactive and open, Barra co-founder the same for his meditative tweets. “Needing generates goodwill for GM and is also setting part of the nothing attracts everything,” he writes. With more than 3 narrative,” which is what a CEO should do during a crisis, million followers, he’s right. said David E. Johnson, CEO of Strategic Vision crisis com5. Martha Stewart: There’s only one person on this list who munications agency. can credibly tweet out a photo of a mushroom to wide ac“The old GM would have tried to distance itself from claim. Whether on the farm or backstage waiting for her cue, this,” said Jim Olson, former head of U.S. public relations the Martha Stewart Living Omnimedia chairwoman knows for Toyota and now a professor at Winthrop University. But her audience. “you have to embrace problems to learn from them — not 6. Vijay Mallya: The UB Group chairman lives life in the try to bury them,” he said. fast lane – literally. He’s principal of the Sahara Force India For stepping up to the plate on this crisis, Barra can now Formula 1 racing team, and his social channels track his step up to the stage and take this week’s Golden Mic! team’s progress in and out of the pit. All that’s missing is the Each week, The Spin Cycle will bestow a Golden Mic burning rubber.

Award to the person, group or company in the court of pub7. Arianna Huffington: According to the president and ed- lic opinion that best exemplifies the tenets of solid PR, itor-in-chief of AOL’s Huffington Post Media Group, there marketing and advertising – and those who don’t. Stay are better ways to sleep, eat, work, converse, and vacation. tuned – and step-up to the mic! And remember … Amplify Follow Huffington and you’ll get plenty of advice on how to Your Brand! live the good life.

8. Mark Cuban: Three words: Pulls. No. Punches. The Todd Smith is president and chief communications officer of AXS TV chief executive, Dallas Mavericks owner, and se- Deane, Smith & Partners, a full-service branding, PR, marketing and adverrial entrepreneur has no problem sharing his opinions (and tising firm with offices in Jackson. The firm — based in Nashville, Tenn. — the successes of his myriad companies) with the masses. is also affiliated with Mad Genius. Contact him at todd@deanesmithpart9. Padmasree Warrior: She’s known for her prominent role ners.com, and follow him @spinsurgeon.

SALES MOVES

June 13, 2014

I

Mississippi Business Journal

I

19

» JEFFREY GITOMER

Salespeople have questions; Jeffrey has answers

I

get a ton of emails from people seeking insight or asking me to solve their sales dilemmas.

Here are a few that may relate to your job, your life, and (most important) your sales thought process right now.

Jeffrey, Years ago I took your advice to get into Twitter for my business. What do you think of only paid clients having access to tweets through an approved followers account? Mike Mike, If you do it that way you need two accounts. One that you give to everybody in the world and one that you give just to an elite group of people. And if you do the elite group of people, notate on your Twitter page that, “This is for my clients only. All others, if you're looking for this great advice, you have to become a client of mine. Here's how…” And use it as a lead source.

Best regards, Jeffrey Jeffrey, Do you think it's a waste of time to call a guest that has just checked out of my hotel to thank him or her for staying with us? What would be the best way to gain their repeat business? Evangeline Evangeline, If you're going to call a customer after they've stayed in your hotel, first of all, you better make it short and sweet. Second of all, the value must be for them. Don't ask something like “How was your stay?” because they're going to say, “Fine.” I want to know what the best thing about their stay at the hotel was. Did the hotel accomplish their goals? Oh, that's cool. On a scale of 1-10, how was the food? On a scale of 1-10, how was the shower? On a scale of 1-10, what was the quality of your room like? On a scale of 1-10, how fast was the Internet? Those are the things that bug customers.

I'm in hotels 250 nights a year. They're the ones that bug me. So get those things. Get their opinion, based on a scale, or based on some words, not just “How was it? It was fine.” Don't pat people on the

head and ask a bunch of stupid questions. Get them engaged. And then you can say, “Well when are you coming back?” That's all you need. Jeffrey Jeffrey, When I send out quotes and proposals, clients seem to take their time reviewing the information and completely disregard the respond by date on the quote. I feel clients don't respect this time frame and, in addition, I feel that we, as salespeople, end up on the defensive explaining why we're following up. I feel clients today want everything for nothing, expect the best from a company, and yet, they just do not seem to care about the value of what they've requested. How do you know when to just give up on a client like that and move on? Aaron Aaron, Clients want everything? Give them everything! Clients want value in the proposal? Put value in the proposal! Leave your prices out of the proposal so they have to call you to get it. “Oh, prices? Yea, you have to call me for those.” Come on, use your head. You're not sending a quote out, you're building a relationship and the quote is basically something that confirms the sale. What are you doing with your time? And don't cast yourself with a bunch of other salespeople. This is you. Don't be defensive when you're following up. Do you know what a total waste of time that is and you look like a jerk, literally. Be offensive. Explain more reasons why they should buy. Talk about their motive. Talk about their value. You don't even know why they want to buy. You're just sending out a proposal on a wing and a prayer and hoping. Not good. Best regards, Jeffrey Jeffrey, I've recently moved into cruise sales. I find that customers in the travel industry shop for prices but after the prices are given the customer will disappear before any real discussion takes place.

How can I turn these prospects into a sale? Ben Ben, The first thing you want to do is get to a real discussion before you give the price. Find out why

they want to take a cruise. Is it a honeymoon? Is it a 10year anniversary? Is it just for the heck of it? What are they trying to do? At the end of the cruise what do they want to have happen? What do they want the outcome Jeffrey Gitomer of that cruise to be? That's their emotional trigger for buying. And I want to know about the best cruise they've ever been on? I want to know if this is their first cruise or their 100th cruise.

I want to assure them my cruise may not be the actual lowest price but it's always the best value, because when people get off a cruise, they're going to remember three things: 1. What happened? Did anything go wrong?

2. How was the food?

3. What did they do? How was the view like if they went by the mountains? What were the ports like if they were adventurous?

So Ben, your job in this process is to uncover all their stuff before you give the price and set a firm meeting – I mean a firm meeting, a day and a time, not like early next week; Monday at 1:30PM – to talk

to them after you give the price so you can reconnect. Got it? Best regards, Jeffrey Jeffrey Gitomer is the author of “The Sales Bible”, “Customer Satisfaction is Worthless” “Customer Loyalty is Priceless”, “The Little Red Book of Selling”, “The Little Red Book of Sales Answers”, “The Little Black Book of Connections”, “The Little Gold Book of YES! Attitude”, “The Little Green Book of Getting Your Way”, “The Little Platinum Book of ChaChing”, “The Little Teal Book of Trust”, “The Little Book of Leadership”, and “Social BOOM!” His website, www.gitomer.com, will lead you to more information about training and seminars, or email him personally at salesman@gitomer.com.

http://www.msbusiness.com

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INTERNET SERVICES Q Comcast Business .......................................................................................... www.comcast.com Q TEC ..................................................................................................................................www.TEC.com

LAW FIRMS Q Victor W. Carmody, Jr. P.A. .............................................................. www.mississippidui.com

PUBLIC UNIVERSITIES Q Delta State University................................................................................... www.deltastate.edu

The Nature Conservancy, the largest conservation organization in the US and the world, seeks a full-time Operations Manager for the Mississippi Chapter. The Operations Manager will be responsible for managing the day-to-day office administration services for the Mississippi chapter. In addition to administration, this position will be involved in assisting in the development and production of fundraising materials for the philanthropy department, as well as, supporting our work with Trustees. This position will also provide Executive Support to the Associate State Director. Excellent verbal skills, written skills, and the ability to multi-task will be necessary.

For more information and to apply, please visit www.nature.org/careers and search for job ID# 42205 in the keyword search. Deadline to apply is June 24, 2014.

The Nature Conservancy is an Equal Opportunity Employer.

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