March/April 2016
Back to the Capitol State Legislators And the Task Ahead Manufacturing The Path to Recovery Blue Cross Executives On Health Care Changes Parks & Tourism Leader: ‘I’m a Lucky Man’ Governor’s Cup The Annual Competition Treatsie Delivers Via Sweet Technology
Bumpers, Clinton & Pryor A Golden Age of Arkansas Politics
www.talkbusiness.net
Contents March/April 2016 5 Publisher’s Letter Commentary
7 Greg Kaza
The Anatomy of Efficiency
9 Kathy Deck
20
Economic Altitude
14
Profiles Kane Webb Tourism’s New Chief
20 Treatsie
Delicious Front-Door Delivery
24 Cadron Creek Capital
Changing the Startup Landscape
14 44
28 Surplus Scott
State Rep Finds Supplies For Needs Back Home
PHOTO COURTESY OF KATE JOHNSON, CLINTON HOUSE MUSEUM
23, 27 Insights Industry
40 Startup
The Governor’s Cup Competition
44 Manufacturing
A Path to Recovery
48 Transportation
30
2015 by Road, River, Rail and Air Leadership
60 Sixth Sense:
Future Leaders On Time Management
62
Executive Q&A Stephanie McCratic Founder of Acorn: An Influence Company
66 Back Talk
30 Cover Story: The Golden Age of Arkansas Politics John Brummett recounts the rise and dominance of Dale Bumpers, David Pryor and Bill Clinton in Arkansas politics.
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Features Legislative Preview 2016 A fiscal session and two special sessions could shape the state’s financial future and Gov. Asa Hutchinson’s legacy.
54 Health Care Transition The state’s largest health insurance carrier, Arkansas Blue Cross and Blue Shield, begins its transition at the top. COVER ILLUSTRATION BY SHAFALI ANAND
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TALK BUSINESS & POLITICS | MARCH/APRIL 2016
eptember/October 2014
Marlon
kwell
ECTURE & LIFE
focused on rm is the result ire. With a e areas, the newly t respected and
Wire) and their ompany in the tical news, includconomic sectors.
ay mornings at n 3,000 business hich airs on NPR tent partners r fields.
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the state and is at all levels of ers receive an nt d policy strategies.
From the Publisher September/October 2014
Coming of Age in the ’70s
I have snapshots in my mind of politics in the 1970s. I was on my grade school through junior high school Talk Business & Politics is owned by Marlon trek during those years and the formative commercials, Blackwell Natural State Media and is published six OUR news programs and newspapers of the day were where I times a year.VOICE For additional copies, to be Talk Business & Politics is a multi-media news organization focused on includedbusiness in our mailing list, or for information cut my early teeth on politics. and politics in Arkansas. Our new statewide platform is the result about advertising, contact Daniels of a merger between Talk BusinessKatherine & Politics and The City Wire. With a I liked Jim Guy Tucker when he ran for the U.S. at katherine@talkbusiness.net. combined 24 years of being news leaders in their respective areas, the newly Senate in 1978 because he had a nice smile and I once merged Talk Business & Politics brand has become the most respected and resourcedMarch/April media in the industry.2016 saw him in downtown Little Rock and thought that was cool. My apologies to David Pryor. It would be years & and CEO Content isPublisher driven by Roby Brock Michael Tilley (The City Wire) and their later before I was introduced to the former governor Roby Brock team of veterans. The recent merger created the only media company in the state offering multi-platforms dedicated to business and political news, includroby@talkbusiness.net and senator who earned my admiration. ing niche regional coverage and insights into Arkansas’ top economic sectors. At the age of 5, I met Dale Bumpers on the 1970 camArt Director Brock isPistole, the host of Talk Business & Politics, which airs Sunday morningspaign at Bryan DesignMatters LLC trail at the Clay County Fairgrounds – I believe 9:30 a.m. on KATV Channel 7, having interviewed more than 3,000 business bryan@designmattersllc.com it was Piggott on Independence Day. I’m certain of the OUR AUDIENCE and political leaders. He also moderates a radio program which airs on NPR Our audience leadssure with CEOs, and primary of affiliates statewide. Supporting staff, contributors, and content partners place, but not so of presidents the season. I executives was nudged to Executive Editor companies statewide. In addition, business owners of $2.5+ million in represent the most knowledgeable and experienced in their fields. Michael Tilley the front of a crowd and encouraged to shake his hand sales revenue, elected officials at all levels, trade association executives michael@talkbusiness.net higher education also receive our publication Digital platforms such as Talkbusiness.net, daily and weekly E-Newsletters, becauseand“he’s gonnarepresentatives be the next governor. ” and products. Facebook, Twitter, LinkedIn, YouTube and iTunes allow news and Bill Clinton came to a groundbreaking of my father’s new business. Years later in college, Editor information from around the state to be made accessible as it Billkeeps Paddack of our readers the newsD’ makers driving busiis happening and those most affected in the know. ClintonMany bought meandaviewers beerareatalsoPizza Action in Stifft’s Station after a campaign rally. How bill@talkbusiness.net ness and political headlines in Arkansas, nationally and internationally. could I not be beholden? The magazine edition reaches affluent decision-makers across the state and is Contributing Writers All of these political legends came to prominence in the 1970s, a decade of incredible soan essential resource guide for new entrepreneurs and leaders at all levels of Brawner government.Steve With a dedicated 12,000 copies bi-monthly, readers receive ancietal change. My connection with them had nothing to do with their politics or the politics Brown in-depth lookWesley at business and political profiles, the most current of the day. It was all personal. A handshake, an encounter, a social beverage. These natural developments in key regions and industries, plus corporate and policy strategies. John Brummett Kerri Jackson Case and intimate meetings are what make Arkansas politics so special. Todd Jones After Dale Bumpers’ death on New Year’s Day, I knew we needed to honor his life and Rex Nelson legacy. In discussing the story angle with the indomitable John Brummett, it became apparCasey Penn TELEVISION RADIO PRINT ONLINE E-NEWSLETTERS PODCASTS SOCIAL Jamie Smith ent that the tale of Dale Bumpers was really the tale of the decade that produced the “Big Kim Souza 3” – Bumpers, Pryor and Clinton – as well as many others who rose to prominence in this Michael Wilkey Golden Age of Arkansas politics. Photographers Who better to recall and add the proper context to this era than the guy who cut his teeth Stephanie Dunn during the day? Of all the stories John Brummett has written for this publication over the dunnmsteph09@yahoo.com years – and there have been some great ones – this is my all-time favorite. I hope you enjoy Tim Rand reading it as much as John enjoyed writing it. He tells me it was effortless. pix@trand.com I also hope you like our cover art on this magazine issue. I asked our world-famous Bob Ocken illustrator Shafali Anand to take a compilation of several interesting campaign photos we bob@ockenphotography.com found through the years and to create something new and timeless and inspirational to the Kat Wilson generations who grew up and matured with Dale, David and Bill. With no intimate knowlkatographic@gmail.com edge of these three men other than what their photos convey, I think she’s perfectly captured their spirit and camaraderie. Vice President Sales & Marketing Katherine Daniels Enjoy this cover story and the rest of our fantastic publication. It’s a pleasure providing katherine@talkbusiness.net this content to you and, as always, we value your feedback and thoughts. And while you’re at it, get to know some of the politicians of today. You never know what the future has in store. Business Manager Story Topic Story Topic Story Topic Story Topic Story Topic Story Topic
ON ARCHITECTURE & LIFE
Daelene Brown daelene@talkbusiness.net
OUR AUDIENCE
Our audience leads with CEOs, presidents and primary executives of Printer companies statewide. In addition, business owners of $2.5+ million in Democrat Printing & Litho sales revenue, elected officials at all levels, trade association executives and higher education representatives also receive our publication and Natural State Media products.
Sincerely,
5111 Rogers Ave., Suite 600
Fort 72908 Many of our readers andSmith, viewers areAR also the news makers driving busi479-242-2800 ness and political headlines in Arkansas, nationally and internationally.
Roby Brock Publisher & CEO
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5
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TALK BUSINESS & POLITICS | MARCH/APRIL 2016
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Commentary
Government Efficiency Project Seeks to Identify Cost Savings By Greg Kaza Greg Kaza is executive director of the Arkansas Policy Foundation, a nonprofit think tank founded in 1995 in Little Rock.
E
fficiency is the process of accomplishing a task in a competent manner with minimal waste of time and resources. Customers are unlikely to enjoy waiting in line to purchase an inferior product. Efficiency can also be applied to state government. State services should be delivered to taxpayers and other customers in a timely manner that does not waste scarce economic resources. The search for efficiencies is an analytical process that includes identifying systems for delivering state services, and uncovering any bottlenecks that may impede delivery. The process starts with organizational charts and mission statements, and advances to interviews with senior staff. These clarify how departments view efficiency and whether any internal or external barriers exist. Some staff have acted to make their departments more efficient, while others may need assistance or specialized information about initiatives in other states.
The project is nonpartisan and will allow an independent group of citizens to volunteer to improve the operation of state government.
MEASURING RESULTS Performance measures are important to this process. “A good performance measurement system possesses several important characteristics,” a 1998 Policy Foundation report notes. “Performance measures should be based on program goals and objectives that tie to a statement of program mission or purpose. They should measure program results or accomplishments and provide for comparisons over time. In measuring both efficiency and effectiveness, performance measures should be reliable, verifiable, and understandable. They should be reported internally and publicly. They require monitoring and should be used in decision-making processes. Finally, performance measures should be limited in numbers and complexity so that they provide an efficient and meaningful way to assess the effectiveness and efficiency of key programs.” Customers that use services and civil servants involved in their delivery have key insights. Research efforts that identify government waste
oftentimes start with a tip from a concerned citizen. The state also operates an Employee Suggestion System that rewards employees for “creativity” and “involvement.” The system seeks state employee “suggestions that provide tangible monetary savings.” FINANCIAL INTEGRITY Gov. Asa Hutchinson announced an Efficiency Project on Dec. 17 during an event commemorating our organization’s 20th anniversary. “Transparency, accountability and efficiency promote the people’s faith in good government,” Hutchinson said. “The citizens of Arkansas deserve a critical evaluation of their state government to ensure the cost-effective delivery of services and to ensure that state employees have every possible means necessary to maximize their effectiveness.” One idea: the project has the potential to preserve and protect the financial integrity of the State of Arkansas. The Efficiency Project is supported by leading Arkansas business people and professionals. One goal is to review state government. Another is to develop recommendations to make state government more cost-effective. The project is nonpartisan, and will allow an independent group of citizens to volunteer to improve the operation of state government. The project will also include analysts with specialized knowledge. Findings and recommendations will be publicly reported when the Efficiency Project completes its work later this year. EARLIER ACCOMPLISHMENTS Other Arkansas governors have advanced the idea of efficiency. Republican Winthrop Rockefeller (1967-1971) proposed a state government reorganization. His ideas advanced under his successor, Democrat Dale Bumpers (1971-75), according to the Encyclopedia of Arkansas. An entry notes, “Much of Rockefeller’s legislative agenda was adopted by Bumpers, including the plan to reorganize state government management from hundreds of disparate agencies into a small group of departments.” Bumpers’ entry notes, “He gained legislative approval of several major reforms that Rockefeller had championed but had been unable to convince the Democrat-controlled state legislature to enact.” The Efficiency Project seeks to identify potential cost savings in state government with the help of citizens, state employees, analysts and other stakeholders committed to Arkansas’ future. www.talkbusiness.net
7
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Commentary
The Arkansas Economy Reaches Cruising Altitude By Katherine A. Deck Katherine A. Deck is the director of the Center for Business and Economic Research in the Sam M. Walton College of Business at the University of Arkansas.
T
he year 2015 was a good one for the Arkansas economy, with trends that portend more success into 2016. The most recent estimates suggest that the state gained 19,500 jobs from December 2014 to December 2015. Even better news is that the job growth was well-distributed among the construction and service sectors, with many different industries experiencing gains. The only sectors of the Arkansas economy that had less employment at the end of the year were manufacturing, logging and mining, and local government, while much of the decline in the manufacturing and logging and mining sectors was related to the downturn in global energy prices. Jonesboro, Northwest Arkansas and Central Arkansas were the regional economies that drove much of the state’s economic success in 2015. Unsurprisingly, these were also the metropolitan areas that saw the largest gains in their service sectors. The fastest pace of job growth was in Jonesboro, where employment grew by 3.1% from 54,800 in December 2014 to 56,500 in December 2015. The Jonesboro economy has been a consistent outperformer within Arkansas, accounting for 23% of net employment growth in the state over the past 10 years even though the area’s labor force represents less than 5% of the state total. The job growth in Jonesboro has come despite downward forces on manufacturing employment – services now account for more than 84% of nonfarm jobs.
The state’s economy is still subject to economic shocks due to global or domestic imbalances, but the fundamental trajectory of employment and income trends is positive.
NORTHWEST ARKANSAS’ SUCCESS The steady increase in employment in Northwest Arkansas also continues to support overall economic success in the state. The region gained
4,800 jobs over the past year, despite well-publicized restructuring at the Walmart and Sam’s Club headquarters and consolidation among some suppliers. Investments in tourism infrastructure, highways and the Razorback Greenway – along with the realization of planned growth in downtown amenities and residential and commercial real estate – kept the regional economy humming even as growth in its biggest employment sectors (trade and professional and business services) slowed. Additional construction projects for multi-family housing, arts and athletics will come to fruition in 2016 and beyond. Finally, the most notable development in the Northwest Arkansas economy was the substantial per capita personal income growth in the region since 2010, putting the area at a standard of living better than the national average for the first time and further improving confidence in the area. The year 2015 was a standout for the Central Arkansas economy. Gaining 3,800 nonfarm jobs, the Little Rock-North Little Rock-Conway metro area had its best year of employment growth since before the Great Recession. Increases in leisure and hospitality, construction and health services jobs led the way. The state’s largest metropolitan area ended the year 2015 with an unemployment rate of 4%, even as the region’s labor force grew at a brisk 2.8% and was at its highest recorded level during the year. Central Arkansas represents more than a quarter of the state’s labor force, so even modest growth in the region is often the difference between economic progress and regress within the state. FAVORABLE CONDITIONS FOR 2016 With these three economic engines in good working order, the overall economic situation in Arkansas is quite favorable for a healthy 2016. Investments in workforce education and training, health care, and physical infrastructure that have been made or are being made will continue to drive incremental improvements in prosperity. The state’s economy is still subject to economic shocks due to global or domestic imbalances, but the fundamental trajectory of employment and income trends is positive. Continuing to identify sectors of strength and funding the strategic investments that keep them viable is the key for a nice, smooth ride. www.talkbusiness.net
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Feature
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TALK BUSINESS & POLITICS | MARCH/APRIL 2016
LEGISL ATIVE PREVIEW:
HEALTH CARE, HIGHWAYS & HUTCHINSON The months ahead are crucial for all three. By Steve Brawner
www.talkbusiness.net
11
Feature: Legislative Preview
I
n some ways, this even-numbered year when the state Legislature isn’t in regular session will be more consequential than the odd-numbered years when it is. That’s because, starting April 6, legislators will meet in a health-care session and then in a fiscal session that, together, will determine the immediate future of health care in Arkansas. Then, as planned, they’ll meet in a third session to discuss Gov. Asa Hutchinson’s proposals to increase highway funding without increasing taxes. What’s driving this busy legislative season is Hutchinson’s efforts to continue the private option in its new form that he is calling Arkansas Works. The private option is the state’s program created in 2013 after the U.S. Supreme Court ruled that states had the option of expanding Medicaid to more beneficiaries under the Affordable Care Act, aka Obamacare. Many Republican-leaning states said no to the money. Arkansas created the private option, which uses federal Medicaid dollars to purchase private insurance for adults with incomes up to 138% of the federal poverty level. The private option has been controversial since it was created. It provides insurance for, at last count, 212,301 Arkansans; has allowed the state to lead the nation in reducing the state’s uninsured population from 22.5% in 2013 to 9.1% in the first half of 2015, according to Gallup; and has reduced the uncompensated care provided by hospitals. However, while it currently is funded almost entirely by the federal government, the state becomes responsible for 5% starting in 2017, which rises to 10% by 2020. Opponents say it’s unaffordable, that it creates a new entitlement, that it allows the federal government to dictate policy to Arkansas, and that it adds to the national debt. And of course, it’s part of Obamacare. To survive, it requires a three-fourths majority in the Legislature, though Hutchinson told the Arkansas Democrat-Gazette Feb. 19 that his administration is exploring if a twothirds majority is enough. It barely passed in 2013 and survived the 2014 session only after much political horse trading. GOVERNOR DEFENDS PROGRAM Hutchinson supports it – with increasing
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outward passion. A lot of what he’s trying to do as governor hinges on Arkansas Works existing. In a press conference Feb. 16 and in an address to legislators Feb. 17, he defended himself and the program that was created under his predecessor, Gov. Mike Beebe. He says he opposes Obamacare but can’t help that it exists, so Arkansas might as well work within that system. Getting rid of it would only hurt Arkansas, force a lot of people to lose their health insurance, and result in a $100 million state budget deficit that would force painful cuts or tax increases, he says. In 2015, Hutchinson persuaded all but the diehard opponents to fund the program through this year, when it ends, while a
Hutchinson has said the highway plan depends on Arkansas Works. Health Reform Legislative Task Force was created to consider a replacement in the context of overall health-care reform. While the task force has been holding hearings, Hutchinson has created Arkansas Works, which is similar to the private option with the following changes. First, it would require adults with access to insurance through their employer to take advantage of that benefit rather than stay on the program. The state would provide assistance in paying the premiums. Second, the state would mandate that able-bodied individuals with no income be referred to job training and job search programs. Third, it would require enrollees with incomes above 100% of the fed-
TALK BUSINESS & POLITICS | MARCH/APRIL 2016
eral poverty line to pay premiums of $19 per month, with those who fail to pay incurring a debt to the state. Finally, Arkansas Works would eliminate a current provision where medical costs can be covered retroactively 90 days prior to enrollment. Instead, costs would be covered only upon enrollment. Hutchinson met with U.S. Health and Human Services Secretary Sylvia Burwell Feb. 1 to discuss the federal waiver the state will need to change the private option to Arkansas Works. On Feb. 17, he described that meeting to legislators by saying that, despite philosophical differences, Burwell supports the framework for Arkansas Works. “I see it as a means of moving up the economic ladder,” he said. “This administration sees it as a permanent status. And so we butted heads. We had a difference of opinion. At the same time, she has some roots in West Virginia and Arkansas. She’s a very practical lady, very cordial lady, and we both realize the differences of opinion and the limitations on each of our positions.” PENDING POLITICAL FIRESTORM So that brings us to today. The special session is to begin April 6, with Hutchinson’s legislative package to be ready a couple of weeks prior. The task force was to vote on its own recommendations March 7, with legislation perhaps ready by March 29. The fiscal session this year begins April 13, instead of in February as a result of legislation passed in 2015 that moved Arkansas’ primary elections to March 1. The authorizing legislation requires a majority vote in the special session, which won’t be a problem for supporters. The big argument will occur in the fiscal session, when a three-fourths majority likely will be required, unless Hutchinson and legislative supporters determine that two-thirds is enough – but, boy, that would create a political firestorm. Remember a couple of paragraphs ago when it was mentioned that these sessions will occur after the primary elections, not before? That’s kind of important. Had the primary elections occurred in May as usual, then Republican legislators would have had to vote on Arkansas Works and then face private option opponents who would
have told voters that they had voted for Obamacare. As it is, it’s a defining issue in three contested Senate primaries and about that many House primaries. When all it takes is nine senators to kill the program, that’s a lot of votes. One other thing: It’s called the “Health Reform” Legislative Task Force, not the “Private Option” Legislative Task Force. At the same time legislators are arguing about the private option, they’re also considering whether parts of the entire Medicaid system should be based on a managed care model. That’s where a private company would run certain programs with financial risks and rewards based on how efficiently they control costs. Hutchinson supports that model. The Task Force’s hired consultant, The Stephen Group, said it could save $1.5 billion over five years. But a group of legislators on the Task Force, most of them Republicans and most of them connected to health care in their private lives, don’t trust that model. At their prompting, The Stephen Group preAAD Ad, Jan 2016.ai 1 12/21/2015 1:59:24 PM sented a package of reforms that could save
about $1 billion through a “managed fee for service model” – basically, an improved version of what we have. FUNDING HIGHWAYS After the fiscal session, Hutchinson expects to call legislators into a special session to discuss his highway funding plan. The state needs to find about $50 million a year to be eligible for $200 million annually in federal funding under the recently passed Fixing America’s Surface Transportation Act. The primary means of funding highways at the state and federal levels is the motor fuels tax, but increasing gas taxes is a political nonstarter. So on Jan. 19, Hutchinson announced a plan that would find that money through a variety of means that typically would be controversial but will seem tame compared to the Arkansas Works brouhaha. Among them, he wants to transfer to highways up to $25 million from the state’s general revenue fund from taxes raised from the purchase of new and used vehicles. General revenue
funds have never been used for highways, so other state interests funded that way – public schools, higher education, human services providers, etc. – will raise a hue and cry. Hutchinson said in announcing the plan that he would offset costs by finding efficiencies in government. Later, he said one possibility would be a cut in the Arkansas Economic Development Commission’s InvestArk program, which provides sales tax rebates for current in-state manufacturers who make capital investments in their plants. Beneficiaries include large, powerful employers such as Tyson Foods. They’re opposed, naturally. Hutchinson has said the highway plan depends on Arkansas Works. Without it, the state faces a $100 million budget deficit, which would make it impossible to increase money for highways without raising taxes, which isn’t going to happen. So what happens to the highway session if legislators reject Arkansas Works? We’ll cross that taxpayer-funded bridge if we come to it.
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Profiles Service PHOTO: BOB OCKEN
During his first few months on the job, Arkansas Parks & Tourism Executive Director Kane Webb, shown at Pinnacle Mountain State Park, has checked out many of the parks that he now helps oversee.
The Tourism Department’s New King of the Mountain Longtime Arkansas communicator Kane Webb tackles his new role with energy, enthusiasm and a broad knowledge of the state he loves. He’s obviously well-suited to it. By Rex Nelson 14
TALK BUSINESS & POLITICS | MARCH/APRIL 2016
I
t has been 30 years, but I vividly remember that interview in 1986. The student from the University of Missouri was an Arkansas native and had a knack for the written word. He was back in Little Rock during his spring break, and he needed a job with a May graduation looming. The newspaper business was still robust, and we had plenty of applicants in those days at the Arkansas Democrat, where I served as the 26-year-old assistant sports editor. This particular writer’s stories stood out. He clearly had a future in the newspaper business, and I recommended that he be hired. He came on board late that summer, but I didn’t get to work with him. The newspaper’s mercurial managing editor, John Robert Starr, informed me that I would be headed to the East Coast to serve as the Washington correspondent. I spent the next four years living on Capitol Hill, finally returning to Arkansas for good with a wife I had met in the nation’s capital. The new sportswriter was named Kane Webb, and he flourished at the Democrat. When I was editor of Arkansas Business, I wound up hiring him away from the Arkansas Gazette as the end neared for that newspaper in 1991. Webb’s long-form writing skills were a major reason that Arkansas Business was named in 1992 as the best business publication in any market of 1 million or fewer people by the Alliance of Area Business Publishers. Last October, a lot of Arkansans were surprised when Gov. Asa Hutchinson announced that a former journalist would replace the beloved Richard Davies as executive director of the Arkansas Department of Parks & Tourism. Davies was retiring after having worked for the department for 42 years, serving under eight governors. Few people lasted longer in state government than Davies. And few people in state government were more popular. Now, the avuncular Davies was being replaced by former sportswriter Kane Webb. ‘OUTSTANDING COMMUNICATOR’ “I’ve known Kane for almost 20 years, and I’ve gotten to know him especially well since he joined our team,” Hutchinson explained. “He has a deep and abiding passion for Arkansas. He has written about more people, places and events in this state than I can
count, and he understands how important parks and tourism are to Arkansans. … He’s an outstanding communicator, and I’m grateful for the work he has done as one of my senior advisers.” Like Webb, Davies was a journalism major in college. He graduated from the University of Arkansas, served in the U.S. Army and was looking for work. Bill Henderson, who headed the department at the time, also had been a journalism major. Henderson hired Davies as a writer. “That was in the days when Gov. Dale Bumpers had put a lot of money into state parks in places like DeGray and Toltec and the Ozark Folk Center, and those places were just coming online,” Davies said. “So I was writing about what the department
“Tourism is no longer the toy department of state government. It’s economic development.” – Kane Webb, Executive Director, Department of Parks & Tourism
was doing, and it became more and more administrative and less and less writing. I ended up over at the state parks division for 14 years and back here for another 25.” The first state park was established atop Petit Jean Mountain in 1923 after the Legislature authorized the commissioner of state lands to accept land donations for parks. In 1927, the Legislature established a seven-member State Parks Commission that had the power to acquire tax-delinquent lands for parks. That’s what happened in the case of the state’s second state park atop Mount Nebo.
Later legislative changes would occur – a revised Arkansas State Park Commission was established in 1937, the State Forestry and Parks Commission was launched in 1953, the State Publicity and Parks Commission was created in 1955 and the current state Parks, Recreation and Travel Commission was formed in 1969. The current state Department of Parks and Tourism was created in 1971 during Bumpers’ first year in office. A LOVE OF READING Earlier this year, Webb and I met for a burger at a place where we’ve shared stories many times through the years, the venerable Town Pump in the Riverdale area of Little Rock. I had never asked him why he initially wanted to be a sportswriter. This time, I did. “Like every other boy who liked the Razorbacks back in those days, I grew up reading Orville Henry in the Gazette,” he said. “I decided that’s what I wanted to do.” He recalls grabbing the Gazette at the family breakfast table in 1976 on the morning when Henry broke the story that Frank Broyles would be retiring as head football coach at the University of Arkansas and devoting all of his time to his job as athletic director. Webb was born at Hot Springs, where his dad taught English, but he spent most of his formative years in Sherwood. He attended Catholic schools – Good Counsel in Little Rock in the first grade, Immaculate Conception in North Little Rock from the second through the eighth grades and Catholic High School in Little Rock from the ninth grade through graduation. He inherited a love of sports from his father, who would run over to Oaklawn Park during his lunch breaks back in the Hot Springs days and place bets for fellow teachers. Floyd Webb also loved baseball. He had been a talented knuckleballer for the famed American Legion team known as the Little Rock Doughboys. The team, which played at Lamar Porter Field and was sponsored by the M.M. Eberts Post of the American Legion, existed from the late 1920s until the 1950s. It was the national American Legion runner-up in 1947, losing to a team from Cincinnati. Floyd Webb came along a few years prior to a Doughboy named Brooks Robinson, who would go on to become a www.talkbusiness.net
15
Profiles: Webb
legendary player for the Baltimore Orioles. Floyd Webb decided he could make more money for his family selling college textbooks. The family lived for a time in Tennessee at Nashville and Memphis before settling in Central Arkansas. Kane Webb lived for one year on Little Rock’s Fair Park
Boulevard before the family built a home in Sherwood. In addition to a love of sports, Floyd Webb instilled a love of reading in his son. The teachers at Catholic High also helped inspire him to read and write. Each afternoon after school when there wasn’t a sports practice, Kane Webb could be found at a place called Publisher’s Bookstore, walking the aisles and looking for new books to purchase. “I went to the counselor’s office at Catholic one day and told him I wanted to be a sportswriter,” Webb said. “I asked him where I should go. He said I should go to Missouri.
It was that simple. It was the only school to which I applied, and I never set foot on campus until the first day of my freshman year.” EARLY DAYS Webb joined the staff of an alternative newspaper on campus as a freshman and began cranking out copy. He said: “I wrote pretty much every day for the next 30 years.” Webb remembers his first day of work at the Democrat: Aug. 6, 1986. His first out-oftown assignment was an American Legion baseball tournament at Memphis. He got the final score wrong in his story. He figured that might be the end of his newspaper career, but no one said anything. In those days, as the Little Rock newspaper war was heating up and both newspapers had large amounts of space to fill, just getting out the paper each night was the goal. “Being in the sports department at the Democrat was kind of like being in a fraternity,” Webb said. “We were young, and most of us didn’t have families to worry about.
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TALK BUSINESS & POLITICS | MARCH/APRIL 2016
Greers Ferry Lake
Friday nights during high school football season were spent drinking beer on the parking lot after we got the city edition out. We would rush to the box in the middle of the night to buy a Gazette and then count to see if we had more high school scores. It was a war, and we thrived on that. I can remember once going straight from the parking lot to the airport to fly to a Razorback game. I never went to bed. I realize now how lucky I was to come along when newspaper work was still fun.” In the fall of 1990, Webb was offered a raise from $20,000 a year to $28,500 to jump to the Gazette. He made the switch. “I was going to get married, and I needed the money,” Webb said. “In hindsight, it was a stupid decision. It was all about the money. By about May 1991, some of us realized the Gazette wasn’t going to survive.” Webb moved to Arkansas Business shortly before the Gazette closed in October 1991. He married Fran Jansen of Little Rock the following month. “Going to Arkansas Business was a key
point in my career because it got me out of sports and allowed me to write about other things,” Webb said. ANOTHER MOVE We had desks that faced each other, and we didn’t mind working long hours. Those were exciting times, Webb visits with personnel at the Pinnacle Mountain State Park gift shop. and there seemed and coordinating the coverage of Clinton’s to be big stories every week – the Gazette presidential campaign. I accepted the job, closed, Bill Clinton was running for presiand Webb succeeded me as editor of Arkandent, Witt Stephens died, Sam Walton died. sas Business. During the early summer of 1992, I was In 1994, Webb interviewed with Paul contacted by the Arkansas Democrat-GaGreenberg, the Pulitzer Prize-winning edizette and asked if I would be interested in torial page editor of the Democrat-Gazette. filling the new position of political editor
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Profiles: Webb Greenberg hired Webb as his deputy. “I knew of him, of course, but I had never met him,” Webb said. “It was amazing how much freedom he gave me.” Webb lived for a short time in Minneapolis, where his wife’s brother resided, and survived what he called “the worst winter of my life.” He also spent a brief time in New Orleans, one of his favorite cities, writing for the Times-Picayune. The vast majority of his career, though, has been in Arkansas. At the Democrat-Gazette, he spent more than a decade writing daily editorials, a weekly column and features for the Sunday Perspective section, which he edited. By 2009, Webb decided that the newspaper business was no longer fun. His father died in May 2009, and Webb said he “lost my ballast.” Webb did some freelance writing after leaving the newspaper and also accepted an invitation from his friend Steve Straessle to teach journalism, creative writing, American literature, music survey and religion at Catholic High. By 2010, the Democrat-Gazette was calling again, asking Webb to serve
as the editorial director of its special publications – Arkansas Life monthly magazine, Sync Weekly and three zoned editions. He set the editorial direction and tone for those publications and supervised a staff of more than two dozen employees. “I once had been told that I was a magazine writer trapped in a newspaper writer’s body,” Webb said. “I was just a duck to water when it came to magazines. I loved every part of it – writing, editing, managing the staff. I wanted Arkansas Life to be for Arkansas what Texas Monthly was for Texas.” When Webb became concerned that he and the Democrat-Gazette management didn’t share the same vision for the magazine, he accepted an invitation to interview for the job of editor of Louisville magazine. Because of his love of thoroughbred racing, Louisville – the home of Churchill Downs and the Kentucky Derby – was to Webb a bit like Mecca is to a Muslin pilgrim. Webb hit it off with the magazine’s owner, Dan Crutcher. He said of Crutcher: “Dan told me he bought the magazine because he wanted
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to be able to write longer stories. How can you not love that? My mother and sister had moved to Bella Vista after my dad died. I needed a change of scenery. I just needed to get out of Arkansas.” BACK TO ARKANSAS Webb transformed the magazine, winning praise from readers and seeing Louisville nominated for national awards. But his father-in-law had died, his mother-in-law was aging and his wife and daughter missed Little Rock. So Webb returned to Arkansas once more in the spring of 2014. He began reworking a novel his father had written under the name of F. Spider Webb in 2005. It’s titled “Pool Halls, Parlors and Pawn Shops” and focuses heavily on thoroughbred racing. Webb also did freelance writing, wrote a column for the website Sporting Life Arkansas, edited a book on the Kentucky Derby and helped out a couple of public relations firms. The week before Christmas in 2014, Webb received a text from a number he didn’t recognize. It said: “Do you want a job?”
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He asked, “Who is this?” It was outgoing Second District Congressman and incoming Lt. Gov. Tim Griffin, who informed him that Gov.-elect Asa Hutchinson needed a strong writer on staff. Webb, who had covered several governors as a writer, was intrigued. He began work on Jan. 5, 2015. He and Hutchinson hit it off immediately. “I was kind of the older guy with gray hair on a relatively young staff,” Webb said. “There was the inauguration, and then we went directly into the legislative session. We were working seven days a week, but I didn’t mind. It was pretty heady stuff for an old sportswriter. During the summer, the governor promoted me to senior adviser, and I began working on projects beyond writing for him. One of those projects was to find a replacement for Richard Davies. We looked outside the state and inside the state. I kept going back to something Chuck Magill at the Capital Hotel in Little Rock told me. He said: ‘This is such a peculiar state, and I mean that in a good way. You need someone who knows it well. It would be even better if
it were someone who lived somewhere else and then came back to Arkansas.’” Davies mentioned that Webb himself might be a good fit for the job. Two interviews that Webb had planned with potential directors were called off, and Webb wrote the governor a memo explaining that he had reached a dead end. Hutchinson called him in and said, “You’re going to get the job, and I want to announce it right away.” Webb said the governor “trusted me and knew how much I love Arkansas. I enjoyed my brief time working in the governor’s office. I didn’t mind the hours or the pressure. I’m crazy enough that I want to do it all.” OFF TO A GOOD START Webb shadowed Davies for six weeks until Davies’ retirement took effect at the end of November. Like the reporter he once was, he took copious notes on a daily basis. “It was kind of Richard’s farewell tour as we went to state parks and tourism attractions across the state,” Webb said. “His generous endorsement of me at every stop
went a long way in helping me get off to a good start. My first goal is to do no harm because I didn’t inherit an agency that’s broken. Tourism revenue is at an all-time high in our state. I’ve walked into an excellent situation. I think we have the best system of state parks in the country, but there’s always room for improvement. For instance, we need to attract more outside investors in our private-sector tourism facilities. We need to convince more people to relocate to Arkansas. We need to have more of a national effort to sell Arkansas to groups such as motorcyclists and mountain bikers. Tourism is no longer the toy department of state government. It’s economic development.” So how does the writer I first interviewed three decades ago sum up the whirlwind of recent months? “I’m a lucky man,” Webb said. “I love the fact that old sportswriters are able to do things like this. I like it that I’m the third journalism major to head this department. You know, I’ve always been a sportswriter at heart.”
Be inspired by the Kinsey Collection See the nationally acclaimed Kinsey Collection, including rare art, artifacts, books and more, at the Mosaic Templars Cultural Center. This fascinating exhibit showcasing an authentic and amazing story of the black experience in America is not to be missed. The museum is free and open to the public. The Kinsey Collection is on display April 8 – July 2.
501 W. 9th St., Little Rock, Ark. • MosaicTemplarsCenter.com An Agency of the Department of Arkansas Heritage
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Profiles Service PHOTOS: BOB OCKEN
Treatsie’s co-founders, Keith Hoelzeman (left) and Jamie Walden are friends who have turned an idea into a tasty success.
Treatsie: Connecting Sweet to Sweet Tooth Every Month Artisan Candy Company Delivering Via Sweet Technology By Casey L. Penn
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his January, Huffington Post included Treatsie.com in its list of luxurious winter treats and trends. Last December, InStyle Magazine named Treatsie one of “11 Best Food Subscription Boxes (That Make Awesome Last Minute Gifts).” Despite its relatively short history, Treatsie.com has made the pages of a number of local, regional and national press outlets including Forbes, USA Today, Candy Industry Magazine, Arkansas Life, Little Rock Soiree and others. “It feels good when a stylish publication picks you up to promote you,” said Jamie Walden, a Treatsie co-founder who serves as the company’s chief marketing officer and creative director. A former business writer, Walden understands the power – and message – of a positive business feature. “It’s nice to know that they’re interpreting our products the way we see them and market them.” THE MAIN IDEA Co-founded in 2013 in part through a Kickstarter campaign, Treatsie.com is a subscription commerce company that has grown from two men filling orders out of a living room into a lucrative and still-growing business venture. The Treatsie subscription box, the company’s staple product, is a monthly assortment of artisan sweets carefully chosen from a select group of independent vendors like Carla Hall, Lillie Belle Farms and other brands of small-batch candy bars, cookies, popcorns, taffy and much more. The idea for the box came from a simple case of too many choices. Like many great concepts, it was born out of a moment of frustration. While searching for treats for his wife, co-founder and Chief Executive Officer Keith Hoelzeman became overwhelmed with Google search results – so much so that he made no purchase at all. While he didn’t score sweets for his sweetie that day, the entrepreneurial Hoelzeman found inspiration to create a better way – namely, easier access (with fewer decisions) to purchasing high-end sweets. Having grown up in an entrepreneurial family, Hoelzeman had a history of bringing ideas to fruition. “From a young age, I was thinking out concepts,” he recalls. “In college, I discovered that I could sell regional soft drinks through online marketplaces and make a
nice profit. I’ve been hooked [on entrepreneurship] since. It’s about taking risks to do things that you believe you can do better than anyone else.” Three years later, Hoelzeman’s risks are paying off as Treatsie.com has made the hunt for treats easier for shoppers in a number of satisfying ways. In addition to delivering a cutely packaged box of surprise sweets to consumers’ doors each month, Treatsie is an e-commerce marketplace. From Treatsie.com, customers can repurchase their favorite box items, as well as seasonal and limited run items (such as a deluxe s’mores kit). Custom business gift boxes are available, too (call 888-544-3032 for information). “We use all available data to learn what
“I’ve yet to meet an entrepreneur whose goal was to build the second-best solution to the problem.” – Treatsie co-founder
Keith Hoelzeman customers want so we can put it in front of them,” says Hoelzeman. “We work hard to stay on top of customer taste preferences and purchase behaviors, and from that point, we have a team that seeks out and tries many samples before finding the right products. We say ‘no’ to a lot more than we say ‘yes’ to.” Treatsie is tech savvy. Yes, there is innovative technology at work behind those fun, monthly boxes and the company’s posh, appetizing emails. The company’s study of behavior patterns, buying patterns and purchase activity is enabling them to match each sweet, if you will, to its rightful tooth. Along those lines, Hoelzeman and Walden are developing solution-oriented market research capabilities that, in the future, may lead to new Treatsie products. Again, it’s a search for a better way. New products, Hoelzeman describes, are
traditionally created and marketed along a trajectory that can be cumbersome and includes an idea phase, focus panels, feedback sessions, test markets, more development, retail test markets and repeats as necessary to figure out what will sell. “There are a lot of flaws in that model,” he says. “Instead, we find early adopters in different states who will sign up for our service. We send them – the actual consumer – a test product to offer feedback on. Through actual consumer behaviors, we can see what products customers truly want. It’s not, do they say they’ll buy it, it’s do they buy it.” Based on the subscriber data they are gathering, Hoelzeman and Walden are excited to be in the early stages of bringing the company into the consumer packaged goods (CPGs) industry. “The CPG industry is beginning to understand the power of a company such as Treatsie that can match taste preferences, customer feedback and customer purchase behavior with national and regional market needs,” adds Walden. “Treatsie will be uniquely positioned to provide these products based on the data that we’re able to assemble. As for our own data, we don’t sell it to anybody else. We use it for refining and making our products better.” THE MARKETING TEAM As company reach has expanded, so has customer expectations – and the need for more square footage. Since first fulfilling orders out of Keith’s home and church, Treatsie is now pushing full capacity in its 5,000-square-foot downtown Little Rock location. “It’s hard to describe all the changes,” reflects Hoelzeman. “It is surreal. We try to stay lean to be able to move fast, but by year’s end, we may outgrow our current space as well.” With all of that square footage, the company’s team has also grown and now includes eight full-time professionals. Around 80% of the company’s marketing is Webbased and includes pay-per-click marketing, Facebook advertising and Google ads. Treatsie relies most heavily on one primary component to promote its products – fantastic content and photography that people want to consume and share. “There aren’t really any tricks anymore,” says Walden. “You have to create quality content and then use proper channels to www.talkbusiness.net
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Profiles: Treatsie distribute that content … once you create a great piece of content and it is shared around the Internet, it is evergreen. You’ll continue to have inbound traffic from that piece, whereas your ads with Facebook, Instagram, etc., are transient. We see Search Engine Optimization (SEO) as a real way to diversify our marketing this year.” To help Treatsie create ideal content, the company recently hired Kelli Marks, former head of Sweet Love Bakery and former copywriter for CJRW. “Kelli can write and create amazing pieces, and we’ve put her in charge of our social engagement aspect,” praised Walden. Other talented team members include Kelsey Felberg, graphic designer, and Tim Luff, the company’s email marketing manager who hones in on hard data and consumer behavior patterns.
others about their business ideas. “When we first tried to do Facebook marketing, it didn’t work for us,” says
THE BUSINESS OF LEARNING As Treatsie continues to grow, Hoelzeman and Walden encourage others to pursue their own sweet ideas. They recommend that young entrepreneurs get out and talk to
– Treatsie co-founder
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“The joy of an entrepreneur is not in that which is built, but in the building.” Jamie Walden
TALK BUSINESS & POLITICS | MARCH/APRIL 2016
Walden, giving a case in point of how the two learned from others. “We were shooting in the dark until we talked to people who knew a lot more about it than we did. Since then, it has quickly became our number one marketing channel.” As for where and when to network, Arkansas has a growing number of options. “The Startup Arkansas Conference was a big help to us in the beginning,” says Hoelzeman. “Places like the Little Rock Chamber of Commerce, Venture Center, the Innovation Hub, and Innovate Arkansas are great sources of information. Arkansas loves to cheer on its own. People are willing to help you if you are willing to get out and try to make it happen.” Making it happen for your own business can be a tasty reward, but it takes hard work and time. “You have to stay focused every day,” says Hoelzeman. “Guard your time. Little distractions can derail you in a big way.” That’s not to say an occasional treat – or Google search – is always a waste of time.
Insights
UA Alum Weishaar Wins WWI Memorial Design Competition Joseph Weishaar, a 2013 graduate of the Fay Jones School of Architecture and Design and the Honors College at the University of Arkansas, has won the international competition to design a World War I memorial in Washington, D.C. Weishaar, originally from Fayetteville, is currently a project architect with Brininstool+Lynch in Chicago. It is hoped that the memorial, “The Weight of Sacrifice,” will be ready in November 2018, to mark the 100-year anniversary of the end of World War I. The finished project is expected to cost $30 million to $35 million and will be located in Pershing Park, a 1.8-acre park on Pennsylvania Avenue in the nation’s capital. Weishaar designed “The Weight of Sacrifice” with Sabin Howard, a sculptor in New York. The full professional team needed to implement the design concept includes the Baltimore architectural firm GWWO Inc.; Phoebe Lickwar, an assistant professor of landscape architecture at the University of Arkansas; and engineering consultants Henry Adams LLC, Keast & Hood and VBH. The design was one of more than 350 submissions in the competition for the project, commissioned by the United States World War One Centennial Commission.
Created in 1955 by the Arkansas Legislature...
the Institute for Economic Advancement (IEA) is Arkansas’ only University-based organization with a mission and mandate to UALR Selected Ag Hall Plans to Induct Six provide statewide community economic development, research, The Arkansas Agriculture Hall of Fame will induct six new members at a March 4 luncheon. The newest class includes For Initiative technical assistance, and the training. late agri-businessman W.H. (Bill) Caldwell of Rose Bud, the late educator Hank Chamberlin of Monticello, poultry
To Help FirstIn this capacity, IEA serves as the state’s United States Census Data Year and Students Center the statewide Economic Development Administration
executive Gary C. George of Springdale, rice farmer David Hillman of Almyra, longtime Cooperative Extension rice specialist Bobby Huey of Newport and cattleman John Frank Pendergrass of Charleston. UALR has announced its selection by the American Caldwell had his hand in many agricultural Association of State Colleges and Universities (AASCU) endeavors, including his feed mill, Caldwell to participate in the three-year “Re-Imagining the First Milling, which grew to more than 100 employees Year of College” (RFY) and seven locations around the state. Chamberlin project, an initiative founded what is now the School of Forestry and Caldwell Chamberlin aimed at transforming Natural Resources at the University of Arkansas the first year of college at Monticello. George is chairman of the board of to enhance students’ Georges Inc., leading a family poultry business success in their understarted in the 1920s by his late grandfather, C.L. graduate years and in George. the future workplace. a rice farmer and currently state AR 72204-1099 2801 South University Hillman, Avenue, Little Rock The first year of college has emerged as a critical representative for District 13, is a former president Phone: (501) 569-8519 FAX (501) 569-8538 barrier to student success, the point at which underof the Arkansas Farm Bureau. Huey spent 33 graduate institutions experience the greatest loss of years with the University of Arkansas Division of George Hillman students. The objective of the RFY project is to help Agriculture, including 20 years as a rice specialist at project participants – and ultimately the broader AASthe organization’s experiment station in Stuttgart. CU membership of 420 state colleges and universities Pendergrass is a fifth-generation cattle farmer and – to implement changes that enhance the first-year as president of Pendergrass Cattle Co. he has built student experience and increase student retention one of the top beef herds in the state. IEA_UALR_AD_06162015_600dpi.indd 1 6/16/2015 10:16:58 AM and graduation rates, particularly among historically The mission of the Arkansas Agriculture Hall of underserved populations. Fame is to build public awareness of agriculture As part of AASCU’s RFY project, UALR will select and and to formally recognize and honor individuals implement proven, innovative strategies and programs, whose efforts have led to the prosperity of local Huey Pendergrass adapting them to the campus’ environment and needs. communities and the state.
University Center.
Contact For More Information
iea.ualr.edu
Insights is compiled by Talk Business & Politics Editor Bill Paddack. Possible items for inclusion can be sent to him at wbp17@comcast.net. www.talkbusiness.net
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Profiles Service PHOTO COURTESY OF CADRON CREEK
The co-founders of Cadron Creek Capital include (from left) Jeff Standridge, Kenny Kinley and David Grimes.
Conway’s Cadron Creek Seeks to Change Startup Landscape By Todd Jones
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ome 50 years ago, various businesses and residents in Conway were able to see new possibilities with the soon-to-be constructed Interstate 40. They developed the Conway Development Corp. to begin buying land along the proposed route. The corporation launched in 1959, seven years before the interstate began construction. The result was that several areas near the interstate were developed, helping attract and establish companies such as Kimberly-Clark, Tokusen, Conway Industrial Park, Acxiom, the Conway Airport and many more. The effects of this strategic development changed the city’s landscape for business and industry for more than 50 years. In 2015, Cadron Creek Capital had the same epiphany for what could be a techbased, startup hub of activity in Conway. On Dec. 31, Cadron Creek Capital announced it had closed its first round of funding with more than $1,525,000. The investors and the fund hope to change the landscape of Conway moving forward, making the city a major player among startups in Arkansas. THE BEGINNINGS The Startup Conway Steering Team formed in 2013, according to Cadron Creek Capital co-founder Jeff Standridge. Its first foray into the startup space was with the Startup Launchpad in 2014 during Toad Suck Daze. Steering committee members had more in mind than just an event. They wanted to know what entrepreneurs needed to be successful. Over a six-month period, the committee met with and interviewed entrepreneurs, investors and startup advisers to find out the things that startups need. Standridge said they learned that most entrepreneurs need three basic things: • access to expertise in the form of programs, mentors, advisers, etc.; • access to capital in the form of seedstage venture funding; and • access to the startup ecosystem “and an opportunity to connect and network with other startup founders.” With that as guidance, they began the process of putting Conway on the startup map. During the April 2015 annual meeting of the Conway Area Chamber of Com-
merce, Standridge announced the pending formation of Cadron Creek Capital to help fulfill these needs. “Well, there’s nothing like the accountability that comes along with announcing in a room full of 1,000 people that you’re going to do something,” Standridge said. Co-founders of the fund include Kenny Kinley of Edafio Technologies and David Grimes, CFO of American Management Corp. By August, the fund had invested in its first startups. STARTUP FUNDING IN STATE Startup funding has changed in the past 10 years, according to venture capitalist
“Well, there’s nothing like the accountability that comes along with announcing in a room full of 1,000 people that you’re going to do something.” – Jeff Standridge co-founder of Cadron Creek Capital
Kristian Andersen, who has invested in several Arkansas-based companies, including Pathagility of Conway. “There has been a change in the economics of starting up a technology-based company. Starting a startup requires a fraction of the capital that was required eight, 10 years ago,” he said. Andersen said starting a tech-based company a decade ago would require five to 10 times as much capital as it does today. He also said entrepreneurship has become a
viable career path. “Tech entrepreneurship has become a truly viable career path, and an entrepreneur can launch from anywhere in the country. There has been a significant shift in the culture of risk, and now, tech entrepreneurship has become a credible profession,” he explained. This dynamic, according to Andersen, has allowed more regional based funds to have a significant impact in tech startups. Andersen also is the co-founder of Gravity Ventures in Central Arkansas. He said Cadron Creek Capital is an early stage seed fund like Gravity Ventures. Other Arkansas seed funds include Tonic Fund, The Torch Fund, Hayseed Ventures and Fund for Arkansas’ Future. According to Andersen, the difference between a seed fund and an angel group is that the seed fund will make investment decisions at the fund level, as opposed to angel groups, which are comprised of individual investors that make autonomous investment decisions. For Cadron Creek investments, an interested startup is generally vetted by the co-founders prior to pitching to the entire fund membership, Standridge said. Following the pitch, a vote is taken by the membership as to whether to take the next steps – due diligence – in the investment consideration process. This includes reviewing financials and the business plan. The ultimate decision to invest is made by a majority vote of the full membership following due diligence. The fund meets on the first Tuesday of each month. According to Standridge, there are three main objectives to meet before investing: • the deal must generate a significant return for investors; • it must elevate the overall investment acumen in the community; and • it should create local jobs by encouraging startup companies to launch and/or settle in the area. Spencer Jones is the CEO and co-founder of LineGard Med, and his company is one of the first investments of Cadron Creek Capital. Jones said the fund was a valuable part of his company’s strategy in addition to the funding support. “Finding local capital for a seed round is difficult, and finding true value-add inveswww.talkbusiness.net
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Profiles: Cadron Creek tors is even harder. Cadron Creek’s versatile membership brought strategic insight right into my hometown of Conway,” Jones said. “From the start to finish, their diligence was efficient and founder friendly, and their members immediately began providing expert support. CCC really is a huge asset for Central Arkansas, and a perfect complement to the entrepreneurial initiatives taking place in the state.” Jones’ is one of the several companies already in the CCC portfolio. Others include Live Anew, Broadband Development Group, DivvyHQ, Apptegy and Hayseed Ventures. ENVIRONMENT AND PARTNERS Standridge said the qualities Conway has for startups include higher education available (three colleges), a progressive downtown environment and the “technological DNA” of such companies as Acxiom, HP, Rock-Pond Solutions and Metova, all who have a presence or headquarters in Conway.
In addition, Cadron Creek Capital is working with University of Central Arkan-
“Tech entrepreneurship has become a truly viable career path, and an entrepreneur can launch from anywhere in the country.” – Kristian Andersen venture capitalist
sas College of Business and the Innovation and Entrepreneurship program. Dr. Michael Hargis, dean of the UCA College of Business, said Cadron Creek is playing a vital role in promoting a startup ecosystem. “Access to capital and effective mentor networks encourage and attract entrepreneurs,” Hargis said. “In addition, it is necessary to build a talent pool to staff these growing businesses and contribute to the innovation pipeline – this system includes relevant academic programs, conferences, events and other skill-building activities. Access to capital (both human and financial) leads to long-term economic development and strengthens communities.” UCA’s innovation and entrepreneurship major and minor programs are designed to provide a consistent pipeline of talent to the emerging startup ecosystem. Several UCA students in recent years have started businesses locally while others have moved on to start innovative businesses in other areas of the country.
Driving Our Lives Forward Our schools, healthcare providers, businesses, families and our communities depend on us. There are families to be fed, critical business goals to be met. There is commerce to advance and local and national economies to grow. In short, there are lives to be lived. Everywhere. Every day. The fact is, 87% of Arkansas’ communities depend solely on trucking for delivery of their essential goods and life’s necessities. The 83,000 men and women of the Arkansas trucking industry are proud to drive our communities, our state and our nation forward.
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arkansastrucking.com
Drivers Legal Plan Drivers Legal Plan
TALK BUSINESS & POLITICS | MARCH/APRIL 2016
Insights
Brand New
State Launches Arkansas Inc. On Feb. 4, Gov. Asa Hutchinson and Arkansas Economic Development Commission Executive Director Mike Preston unveiled the state’s new brand direction for its economic development efforts: “Arkansas Inc. When you’re in Arkansas, you’re in good company.” Hutchinson made the announcement at the 2016 Joint Winter Conference of the Arkansas Economic Developers and the Arkansas State Chamber of Commerce Executives. “I like the message,” he said. “It is the right message. ‘When you’re in Arkansas, you’re in good company.’ … That’s a simple message that communicates everything that we’re trying to accomplish in this state.” “When it comes down to it, the State of Arkansas operates like a business, and ‘Arkansas Inc.’ better reflects that,” Preston said. “Businesses operate leaner, faster and more focused – because they have to. If we want to grow business in Arkansas, we need to tell businesses we understand their needs and can address those needs quickly and decisively. That’s what Gov. Hutchinson is striving to do as the chief executive officer of Arkansas and what AEDC is aiming to communicate as we revise executive job titles from government agency descriptions like deputy director to more business-minded roles like executive vice president. And these are precisely the key messages we will be striving to convey through ‘Arkansas Inc.’ ”
Warren Stephens: 30 Years at the Helm PHOTO COURTESY ARKANSAS STATE UNIVERSITY
ASU Boasts Strong Spring Enrollment Arkansas State University has reported its highest spring semester enrollment since the current admission standards were put in place. The current 13,082 student count is the most for a spring semester since 2012. It represents a 4.3 percent increase at ASU over last year’s 11th day count with 540 more students than spring 2015. A key driver in the more than 13,000 enrolled was a record 92 percent of first-time, full-time new students returning from fall 2015 to spring 2016. “We have reallocated resources from administration to student success and are starting to see the positive results,” Chancellor Tim Hudson said. “For example, we have invested in software that provides an early warning system for freshmen who may be having difficulty with certain classes allowing us to provide timely support.”
On Feb. 18, Stephens Inc. Chairman and CEO Warren Stephens celebrated his 30th year at the helm of the renowned investment banking and private equity firm that bears his family’s name. The Little Rock-based global company has grown from around 100 employees to an even more diversified firm of nearly 900 workers in 2016. He became CEO at age 29 on Feb. 18, 1986. Stephens Inc. put together a five-minute video (available for viewing on TalkBusiness.net) that recaps the past 30 years. In it, other Stephens executives and family members as well as a number of Arkansas business leaders talk about Warren Stephens’ leadership as the company has grown and gone through changes. COO Curt Bradbury said Stephens has been “the embodiment of that change.” And Brad Eichler, executive vice president and head of investment banking, praised Stephens’ guidance. “He always does the right thing,” Eichler said.
State Entrepreneur Is National Finalist Springdale’s Anna Daily, with Ascendant DX, has been named a top 10 finalist in the U.S. Small Business Administration’s 2016 InnovateHER Business Challenge for her work to use proteins in tears to detect cancer. Daily and Ascendant DX will compete with the other finalists for the top three awards and prizes totaling $70,000 provided by Microsoft. The 10 finalists will attend the National InnovateHER: Innovating for Women Business Challenge in Washington D.C. in March – during Women’s History Month. At the event they will pitch their ideas to a panel of judges. Winners will be announced March 17. “SBA has turned the spotlight on an Arkansas entrepreneur who is helping transform society and impacting women’s health,” SBA South Central Region Administrator Yolanda Garcia Olivarez said. “Finding and rewarding these visionaries is the message of InnovateHER. Entrepreneurship makes anything possible.” www.talkbusiness.net
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Profiles Service PHOTO: BOB OCKEN • INSET PHOTOS COURTESY OF SCOTT BALTZ
State Rep. Scott Baltz has been able to find everything from bar lights for emergency vehicles to spike strips for police departments to Humvees at the state and federal surplus centers he frequents on behalf of entities back in his district. Examples of smaller items that have been put to use are lamps formerly used at the Governor’s Mansion that are now part of the lighting at the Imperial Dinner Theater in Pocahontas.
Another Kind of Surplus Can Be a Very Good Thing By Michael Wilkey
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tate Rep. Scott Baltz, D-Pocahontas, says his 30 years of work with the Pocahontas Fire Department taught him the need for good equipment. That’s why Baltz says he visits the federal surplus center at the North Little Rock Airport and the Arkansas Marketing and Redistribution Center in Little Rock on a weekly basis. Both places have equipment for sale to police departments, fire departments, and city and county government as well as 501(c)3 tax exempt groups, Baltz said. The lawmaker estimated that he has been able to save the cities and counties in his district close to $2 million over the past several years due to the work. STATE, FEDERAL PROGRAMS According to the Arkansas Department of Finance and Administration website, the groups can go to the state center on weekdays from 8 a.m. to 3 p.m. to look over equipment. The state’s surplus program “oversees the redistribution and the sale of state surplus property between state agencies, tax supported entities and the general public,” the website noted. Online auctions, on location sales and public auctions are held throughout the year to sell the equipment. The auctions take cash, check or credit card. A group can fill out a surplus disposal form online to have the equipment delivered or to pick it up at the Little Rock office. The website also noted that vehicles, four-wheelers, canoes, mowers, tractors, office furniture, exercise equipment, computers, computer servers and video/audio equipment are also up for auction. The federal surplus program, which is administered through the Arkansas Department of Emergency Management, has furniture and office supplies, vehicles, generators and construction equipment among other items for sale, the ADEM website noted. ADEM also brings about 175 semi-truck loads each year of federal property back to Arkansas, officials said on their website. Baltz said a group can put a five-day hold on federal surplus property or a 10-day hold on state property before having to pick it up. Also, the price can be dropped by half if an
item is not bought within 90 days. Baltz said the Randolph County transfer station was in need of garbage trucks. “They haul garbage to Paragould,” Baltz said, noting the older trucks can have between 500,000 and 600,000 miles on them. The newer trucks, Federal Freightliners with about 60,000 miles on them and typically cost about $40,000 each, were bought for about $6,500 a piece, Baltz said. Baltz said he has been able to find everything from bar lights for emergency vehicles to spike strips for police departments. A brush truck, which normally costs thousands of dollars, was found for about $2,500 while a 100-kilowatt generator was found for $1,250, Baltz said. A $30,000 sewer pump for the city of
Randolph County town has been able to benefit from the program. “We recently purchased a dump truck for about one-quarter of what we would have paid in the private sector,” Story said. Most cities and counties face a constant worry over their budget, Story said, noting officials often look for ways to save money. “Everyone is searching for pennies,” Story said. The city also bought a golf cart for the city parks department. Story said the golf cart helps city employees get around town quickly as well as running errands. Both Baltz and Fulton County Judge Darrell Zimmer said the surplus program has been beneficial in Fulton County. Zimmer said many of the local fire
“We are down there to help our districts. ” – State Rep. Scott Baltz Pocahontas was purchased for $1,250 as well as six large truck tires for the Glencoe Fire Department. “It is kind of sad that the surplus is there,” Baltz said of the equipment that is discarded by federal or state agencies. Also, six Humvees were bought for departments around his district. “A one-ton truck won’t go where a Humvee goes. It helps with getting around during flooding,” Baltz said. “You have to go through hoops to get it but it is worth every penny.” Other items like skip loaders, bullet proof vests and underwater breathing apparatuses are also available, Baltz said. “We found a 40-foot by 100-foot tent for $500, 1,000 feet of conduit for $75, a swing set and bleachers,” Baltz said. SEARCHING FOR PENNIES Pocahontas Mayor Kary Story said the
departments, especially in rural areas, have been able to buy new equipment and replace trucks as well as tires. The newer equipment can help reduce the county’s ISO rating as well as helping firefighters in training, Zimmer said. “It helps with the rural fire departments. The cost is only the fraction of what it would cost,” Zimmer said. A new generator was also bought for the Fulton County Hospital. “It definitely would have cost more to replace (through the private sector),” Zimmer said. Baltz said the money saved through the process can help the bottom line of a city’s budget; and that he will drive a truck to Little Rock once a week to help bring items back. “Whatever they need me to help with, I will do. We are down there to help our districts,” Baltz said of lawmakers. www.talkbusiness.net
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Cover Story
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Happy Hours and High Times in Arkansas Politics
By John Brummett The author of this article is a regular columnist for the Arkansas Democrat-Gazette. ILLUSTRATION BY SHAFALI ANAND
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he New Year’s Day passing of 90-yearold Dale Bumpers set off a flurry of nostalgia about the vibrant political time in Arkansas that gave rise to him. Tributes to Bumpers and the era he essentially launched inspired Talk Business & Politics to take a look at the 1970s in Arkansas politics.
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Cover Story: Ode to the 1970s A decade known nationally for Watergate, disco, bell-bottoms and leisure suits was maybe the most notable in Arkansas political history. It was uncommonly eventful, competitive, reform-spirited, dramatic and transformative. It was rich with a new kind of political talent – young, moderate, well-educated, modernizing and progressive on race. This new kind replaced the fading kind – conservatively populist, segregationist, sometimes irascible and demagogic and often, but not always, anti-intellectual. The decade changed the state as surely and substantially as the newly in-charge Republicans are changing it now – more, actually, since the Republicans are just getting started. Consider this timeline: 1970: The governor entering the decade is a transplanted and liberal New York Republican multi-millionaire, Winthrop Rockefeller. He seeks to enlighten the state on race and to modernize its politics from the segregationist and machine era of Orval Faubus. But the state Legislature, almost exclusively Democratic and resentful of the threat that Rockefeller’s money posed to their re-elections, resists. He does manage to get enacted a law per-
mitting mixed drinks by local option in wet counties, which will allow state government to be graced in the early ’70s with a new and important gathering place – T. G. I. Friday’s at Markham and Victory, a block or so from
“Maybe I am and maybe I’m not.” – Former U.S. Senator and Governor
Dale Bumpers, responding to the charge that he was wishy-washy on the issues.
the legislative chambers. Happy hour fun will be had there. Political relationships will be formed there. New-age policies will be advanced there. The state considers and eventually rejects a new state constitution that had been draft-
ed by a constitutional convention the year before at Rockefeller’s behest. BUMPERS WINS HANDILY The charismatic and oratorically gifted Bumpers, who’d gone to law school at Northwestern, rises from near-universal anonymity as a small-town lawyer in Charleston. He announces for governor in June, and, three months later, wins the Democratic nomination. Then he wins the governorship two months after that. It’s safe to say there is no more politically transformative five-month period in the state’s history than this June-to-November romance of Bumpers and Arkansas. The 44-year-old Bumpers came from the West Arkansas legal community, where he was admired for his courtroom skill, and the statewide organization of young and rising community leaders called the Jaycees, for Junior Chamber of Commerce. Saying his father had taught him that public service was a noble profession, and refusing stubbornly to criticize his opponents even when people told him they wouldn’t support him unless he did, Bumpers, a new kind of Democrat, doesn’t merely defeat both Faubus and Rockefeller. He routs them. PHOTO COURTESY OF KUAR
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Cover Story: Ode to the 1970s He launches an era that won’t fully end until and now teaching law at the University of a child of it, Mike Beebe, is term-limited as Arkansas in Fayetteville – challenges Repubgovernor in 2014 and replaced by Republilican U.S. Rep. John Paul Hammerschmidt can Asa Hutchinson. in the Republican hills. Because of Clinton’s 1972: David Pryor, a 38-year-old uncommon political talent and a post-Wacongressman who had been an anti-Fautergate backlash against incumbency and bus reformer and so-called “Young Turk” Republicans, Clinton gets to 47 percent from election as a state representative in a loss that amounted to a win in that it from Camden at the age of 25 in COURTESY GARLAND CO. DEMOCRATS 1960, mounts a bold Democratic primary challenge to the veteran U.S. Senate fixture and legendary appropriator, John McClellan, then 76. Pryor seems to have McClellan on the ropes until, in a televised debate during a runoff, McClellan scoffs at Pryor’s reference to campaign funds he’s received from regular folks dipping into their cookie jars. McClellan, the ailing and fading old pol with a prosecutor’s style, rallies himself to hammer the young challenger with a bass-voiced enumeration of big out-of-state labor contributions Pryor has received. McClellan wins the runoff, 52-48. Pryor learns lessons. He’ll be back. 1973: Bumpers appoints to the Arkansas State University Board of Trustees, effective in 1974, a young man not long graduated from that college, a 27-year-old Searcy lawyer named Beebe. Bumpers gets talked into the appointment by his nephew and trusted executive secretary, 26-year-old Archie Schaffer, a medical school dropout who had befriended Beebe at A-State, where Beebe had been his pledge trainer. 1974: Bumpers challenges U.S. Sen. J. William Fulbright in the Democratic primary, and drubs the world-respected opponent of PHOTO COURTESY OF DAVID PRYOR the Vietnam War. Pryor gets elected governor, defeating, among others, Faubus. propelled him along a road to world history. On the campaign trail, Bumpers meets CLINTON’S FIRST RUN the young Clinton, who had worked for A 27-year-old Northwest Arkansas Fulbright and who tells Bumpers he can’t phenomenon by the name of Bill Clinton – support him in his challenge to such a great just back to his home state from working in senator. Bumpers tells Clinton that if he ever the George McGovern campaign in Texas, became vulnerable to defeat by an unde-
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sirable opponent, he hoped young Clinton would run against him to keep the seat from going to an undesirable challenger. “Man, he’s good,” Clinton recalled thinking of Bumpers on that occasion when he eulogized the departed senator a few weeks ago. As it happened, Clinton would consider running against Bumpers in 1986, when Bumpers would defeat a young Republican lawyer named Asa Hutchinson. That aforementioned Bumpers-Clinton conversation actually takes place at a traditional primary-season rally in Russellville sponsored by the Pope County Democratic Women. The late U.S. Senator Robert Byrd of West Virginia appears there and plays the fiddle to support his friend Fulbright against this presumptuous challenge from Bumpers. Eventually, years later, Sens. Bumpers and Byrd would make their peace. 1975: Hillary Rodham, from suburban Chicago and Yale Law School and staff work for the House Judiciary Committee that returned articles of impeachment against Richard Nixon, marries Clinton in Fayetteville, joins the UA Law School faculty and becomes an unlikely Arkansan. Pryor, as governor, pushes a radical plan to reduce the state tax base and permit local homerule taxation by city and county governments. The Legislature rejects the plan and dilutes it beyond recognition, largely because education forces don’t want to lose the state money and because local government officials don’t want to be at the mercy of tax enactments at home. Famously, Pryor says his plan will allow local people to decide whether they want to pay a tax or buy a coon dog. Thus his ill-fated initiative becomes known, mostly derisively, as the “coon dog” plan. Meantime, Pryor, long possessed of a reform-minded interest in a new state constitution, pushes for a “limited consti-
tutional convention” that the voters would not be required to call by election and which would be restricted to a consideration of revisions in a few articles. By 4-to-3, the Arkansas Supreme Court says he can’t legally avoid an election and limit the agenda pre-emptively in that way. 1976: Clinton gets elected attorney general and heads the Jimmy Carter presidential campaign in the state. Carter carries Arkansas by 65-35. Only his home state, Georgia, gives him a better vote, at 66-34. Plainly, the ’70s in Arkansas belong to Democrats.
Constitution, this time at the reform initiative of Pryor as governor. This proposed constitution gets rejected by voters, probably because of the conservative mood of the Ronald Reagan national landslide as well as concern, as in 1970, about making it easier for state and local governments to raise taxes. That makes three failed attempts at a new state constitution in the decade. The state hasn’t tried since. Oh, and by the way: Clinton gets beat for re-election as governor by Republican Frank White in an epic upset that Clinton would reverse in 1982. The takeaway from that timeline is that Arkansans with an interest in politics should have had to buy tickets to the 1970s.
A RARE SENATE OPENING 1978: Because of McClellan’s death at 81, a rare U.S. Senate opening exists, and three of the state’s most prominent rising DemoPHOTO COURTESY OF KATE JOHNSON, CLINTON HOUSE MUSEUM crats – Pryor, U.S. Rep. Pryor, Chip Carter, and Clinton Jim Guy Tucker and U.S. Rep. Ray Thornton, the latter having voted for the articles of impeachment of Richard Nixon as a member of the House Judiciary Committee – wage an epic battle in the primary. Absent issue differences among these like-thinking and new-generation moderate Democrats, the race is a personality contest – a split personality contest, you might say. PRYOR ON THOSE TIMES Bumpers’ nephew and former top aide, Clearly there are three main characters in Schaffer, manages Thornton’s campaign. this ’70s Arkansas political saga – Bumpers, You will notice that the decade’s big races Pryor and Clinton. The one among them were Democratic primaries arising from actually making the most appearances in the simple opportunities, not so much from timeline is, at 81, still spry and sharp and issues or philosophical differences. ever-willing to chat about the old days. By rounded numbers, leaving off the Pryor reminisced recently at a conference decimal points: Pryor gets 34 percent, table in an elegantly restored home on Izard Tucker 33 and Thornton 32. Pryor wins the Street that he shares as an office with his runoff over Tucker, 54-46. wife and son, the former U.S. Sen. Mark Meantime, Clinton, at 32, gets elected the Pryor, a victim of the new Republican era. nation’s youngest governor. In fact, the state The Pryors have decorated the office’s elects the nation’s youngest attorney general, walls as a veritable museum of Arkansas in Steve Clark, and youngest secretary of political history, and the first order of state, in Paul Riviere – both Democrats, of business for any visit is Pryor’s “two-minute course. tour,” which lasts longer. 1980, marking the decade’s end: The Pryor said Arkansas in the 1970s was state has another convention to write a new still putting its primary premium on “retail
politics,” meaning the personal kind encompassing old-fashioned glad-handing and stump-speaking. He retrieved a photograph of Bumpers giving a stump speech with Pryor beside him – astride a donkey. Television, much less the obsession on big money for advertising in the Citizens United era that Pryor now laments with near-anguish, wasn’t yet the main element of the game. “Think about it,” Pryor said. “The first case of a televised debate making a difference wasn’t until 1960 with Kennedy and Nixon.” And think about something else: The first case of a televised debate making a difference in Arkansas politics wasn’t until 1972 with Pryor and McClellan. The effect wasn’t good for Pryor. Retail politics still dominated, but that Sunday evening televised debate was a seismic occasion. Pryor recalled it this way: He came back to Little Rock on a late Saturday afternoon in June from the Pink Tomato Festival, long a mandatory retail-politics appearance until, by way of introducing a new era, Tom Cotton blew it off in 2014 to attend a Koch brothers’ retreat in California, and won big anyway. The televised debate would be Sunday night. Pryor had not yet prepped a whit for the debate. There had been no cram sessions with aides on policy or debate style. There had been no rehearsals with a stand-in for McClellan. A single aide and advisor, his trusted friend Don Harrell, went with Pryor to a room at Howard Johnson’s on South University that Saturday evening for a little privacy to get ready for the event only 24 hours away. “My strategic error,” Pryor recalled, “was that I decided I needed to appear respectful and even deferential to the veteran senator.” That’s understandable. Just two years before, Bumpers had blazed from that 1 percent name recognition in June to an www.talkbusiness.net
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Cover Story: Ode to the 1970s early-September runoff routing of Faubus by running a famously “positive campaign.” Schaffer remembers that one of the first persons to walk into the Bumpers headquarters the morning after he squeezed into a runoff against Faubus was the late liberal lioness of Little Rock, Brownie Ledbetter. She had previously told Bumpers that she would not support him in the eight-man primary unless he attacked the machine politics and record of Faubus. Bumpers simply would not do it, and, in time, his smile-and-shoeshine campaign would offer Ledbetter and other reformers their only – and best – Democratic option. But one thing about Arkansas politics in the 1970s or any other time is that it will defy consistency and contradict itself. What worked for Bumpers didn’t work for Pryor. THAT ‘COOKIE JARS’ LINE “What I came to realize,” Pryor said, “is that, when people tune in to a televised political debate, it’s like going to a prize fight. They’re not looking for two guys to dance
around. They want blood on the canvas.” They got some, and it was young David’s. “At some point during my preparations with Don,” Pryor recalled, “we decided it would be good for me to say, if the opportunity arose, that my support came from people around the state dipping into their cookie jars.” So Pryor said it. And suddenly the gruff old incumbent senator got young again. McClellan responded: Cookie jars? How about this national union and another one, and another, and another? McClellan relentlessly ran through the names of powerful unions sending money to use this pliable and ambitious young man to try to take out a senator who’d fought their corruption. These weren’t hard-working Arkansas people scraping the bottoms of their cookie jars. These were big, bad, alien forces. The truth was that Pryor didn’t have a particularly compelling reason to make the race against McClellan. His “Young Turk” reform fight had been more state-based against Faubus than nationally based against
McClellan. The fact, he said, was that, in six years as a congressman representing southern Arkansas, “I was bored to death.” Pryor said he’d asked a staff member to estimate how long it would take him to rise from his membership on the House Appropriations Committee to the chairmanship. The best estimate was 35 years. That was not how he wanted to spend his political life. Beyond that, Pryor said, he had pretty much alienated himself from any help for his career from the Southern Democratic political establishment in Washington. He’d done that in 1968 by voting to seat the black delegation from Mississippi at the national convention. One thing you’ll consistently be reminded of when considering Pryor’s history is that, notwithstanding his eventual reputation for an aw-shucks finesse of tough issues, he came up early as one of the state’s bravest and brashest liberal reformers. Pryor would bounce immediately back from his narrow loss to McClellan to get
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elected governor in 1974, as Bumpers defeated Fulbright for the U.S. Senate. Bumpers did it again with the decidedly positive campaign that wouldn’t work for Pryor against McClellan. Bumpers was not critical in his lone televised debate with Fulbright, which was aired nationally as a “joint appearance” on a Sunday news show on ABC called “Issues and Answers.” The national interest was owing to Fulbright’s prominence in foreign policy and Bumpers’ rising status. At one point during the program Fulbright exasperatedly told the moderator, “You’re seeing how hard it is to get this man to answer a question.” Indeed, Bumpers had once been asked at a news conference as governor how he would respond to the charge that he was wishy-washy on the issues. And Bumpers said, “Maybe I am and maybe I’m not.” RATING THE GOVERNORS Through it all, the steady theme of the ’70s in Arkansas was reform, moderation, modernizing and racial progress.
Arkansas historians and political scientists have rated Bumpers the state’s best governor of the 20th Century, which, in effect, means greatest ever. He raised income taxes, reorganized state government, created community colleges and advanced free textbooks and universal childhood immunization. And he did it as an absolute political novice with, as his key executive aide, that 23-year-old nephew, Schaffer, who modestly credits whatever success he had to his ability to negotiate happy hour at T.G.I. Friday’s. But Bumpers had some other uncommonly strong staff help, including that of the late Brad Jesson, his beloved friend and Fort Smith lawyer who, poignantly, died during Bumpers’ funeral in Charleston. Bumpers had first wanted Jesson as his executive secretary. But Jesson couldn’t afford to leave his law practice full-time. He did agree, though, to come to Little Rock during legislative sessions to head the liaisons whipping the Legislature for Bumpers’ agenda. Bumpers also had on that legislative team
an uncommonly cerebral young lawyer named Richard Arnold, whom Clinton still laments not being able to nominate to the U.S. Supreme Court. That was owing to Arnold’s health and concern that Republicans might get to fill the seat before any legacy could be realized. Clinton was rated third and Rockefeller fourth among Arkansas governors of the 20th Century – Clinton for education reforms, mainly in the early ’80s, and Rockefeller for his transitional value in the late ’60s in defeating Faubus and advancing a strong reform agenda that Bumpers would later get enacted. Still, the fact remains that three of the top-rated governors of Arkansas in the 20th Century served in one decade, this greatest decade, the 1970s. The other, second-ranked George Donaghey, served from 1909 to 1913 and advanced the creation of public colleges and a system of public health regulation. THE ARKANSAS PLAN Missing among those highest-rated
Winthrop Rockefeller came to a mountain and changed the world around him. We invite others to do the same. Learn more at www.rockefellerinstitute.org.
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Cover Story: Ode to the 1970s governors is that fourth progressive chief executive of the ’70s – Pryor, the earliest reformer whose governorship from 1975 to 1979 was not as eventful or transformative. Nor was it as favored with historic opportunity and money as Bumpers’. And it was not as dramatic or marked by fateful political ambition as Clinton’s. “So we did more symbolic things, I guess you could say,” Pryor said. He couldn’t get constitutional reform done. And what became the central policy initiative of his fouryear governorship, the home-rule Arkansas Plan, was . . . well, let’s allow Pryor himself to assess it: “Some days I think it was radical and some days I think it may have been pretty smart,” but, as to the question of whether he’d do it again, “no, I don’t think so.” Pryor recalled sitting down with his smartest aides to brief his best legislative ally, the late and colorful and homespun state Rep. Lloyd George of Danville, on the
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PHOTO COURTESY OF DAVID PRYOR
Arkansas Plan. Pryor said it probably was telling that, after the explanation, the farmer George declared, “I don’t understand a word of it, but I’m all for it.” The failure of that policy aside, there may have been broader significance – indeed a microcosm – in that humorous moment.
TALK BUSINESS & POLITICS | MARCH/APRIL 2016
What happened generally in Arkansas politics and government in the ’70s is that moderate, modernizing, new-generation governors possessed of uncommon political and personal skills – Bumpers, Pryor and Clinton – melded with enough of the crazy-like-a-fox good ol’ boys from the hinterlands to move a backwater place forward. The effect was to distance the state from the school integration disgrace of 1957 and transform it to a place that could produce in 1992 a president of the United States. You could say, as someone did, that Bumpers was preceded in death by the Arkansas political era he launched – by 14 months, the time between the completion of the Republican takeover in November 2014 and his death in January 2016. The new era pales in comparison in terms of personality and drama and eventfulness, but is young yet.
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Industry PHOTOS COURTESY ARKANSAS ECONOMIC ACCELERATION FOUNDATION
Mike Preston, executive director of the Arkansas Economic Development Commission, emceed the 2015 Governor’s Cup event in Little Rock.
The University of Arkansas’ Carol Reeves with Arkansas Capital CEO Rush Deacon, following Reeves’ team winning at the 2015 Tri-State competition.
Agricultural Innovations’ Joshua Baker delivers the winning elevator pitch during competition at the 2015 Tri-State awards dinner in May 2015 in Las Vegas. TIRE, a team from Harding University, won first place in the undergraduate track in 2015.
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Fostering Entrepreneurship In Arkansas With $154,000 in prize money, the annual Donald W. Reynolds Governor’s Cup Collegiate Business Plan Competition engages would-be entrepreneurs. By Casey L. Penn
C
an you define entrepreneurship? Who better to answer this question than Sam Walls III, president and chief operating officer of Arkansas Capital Corp., a company with an “Entrepreneur’s Toolkit” on its website and the organization in charge of the Governor’s Cup Collegiate Business Plan Competition that is underway now for the 16th year here in Arkansas. “The debate goes [like this],” explains Walls. “Is an entrepreneur someone who goes to his garage and starts Hewlett Packard? Of course. OK, is the person who goes out and starts her own sewing business an entrepreneur as well? “There’s some debate about the answer to that question, but we [at Arkansas Capital] would submit that both scenarios are valid and vital to the state’s economy. We need the high-profit, high-tech stories, but if we’re talking about drivers of job creation in Arkansas, we also need the little sewing shops, the welding shops and the like. If you‘re someone who is willing to stand up and say, ‘I’m going to take this on,’ and deal with paperwork, hiring, business plans and all things business, that puts you in the club.” A handful of undergraduate and graduate students from universities and colleges around the state are stepping up to take their practice run at the entrepreneurial “club” as contestants in this year’s Governor’s Cup. The Governor’s Cup began in 2001, during a time when Arkansas struggled with how to promote entrepreneurship. “We were part of that conversation,” Walls remembers. His father’s ideas around the topic led to the state’s first business collegiate competition. Company CEO at that time, Sam Walls, Jr., envisioned ways to stimulate the next generation of venture capitalists. “He wanted
to know, ‘How can we foster, in people, the spirit to become the next Dillard’s, the next Walmart, and the list goes on?’ How do you keep those great stories of Arkansas entrepreneurship going?” In answer, the elder Walls determined that one way to encourage that spirit was to work with students at the college level. “In that setting,” explains Walls, “you talk to them about the value of entrepreneurship
“The idea behind the Governor’s Cup, then and now, is the promotion of Arkansas’ entrepreneurial legacy and the belief that new generations, too, can be successful.” – Sam Walls III Arkansas Capital Corp.
and the idea that, rather than take a job, you can make a job. That’s where it came from. The idea behind the Governor’s Cup, then and now, is the promotion of Arkansas’ entrepreneurial legacy and the belief that new generations, too, can be successful.” THE COMPETITION The competition is managed by the Arkansas Capital affiliate, Arkansas Economic Acceleration Foundation (AEAF). It has two main tracks – graduate and undergraduate.
Each track produces an overall business plan winner as well as winners in secondary divisions (Innovation, Agriculture and Elevator Pitch). This year, Arkansas Capital has received intents to compete from 45 teams representing 13 colleges and universities across the state. Teams are to be judged on the strength of their business concept and, specifically, its associated business plan. They compete for a chance to win a share of the $154,000 prize pool. “The cash prize pool for the Donald W. Reynolds Governor’s Cup is one of the largest in the United States,” says Marie Bruno, executive director of AEAF. “Undergraduate and graduate business plan winners [can] win up to $25,000. Winners spend cash awards at their discretion – they are rewarded for going through the rigor of the business planning and entrepreneurial education process.” First- and second-place winners in each track in Arkansas move on to compete against teams from the other Governor’s Cup participant states – Nevada and Oklahoma. The Tri-State Competition is held, fittingly, in Las Vegas near the Donald W. Reynolds headquarters. There, finalists compete for the Donald W. Reynolds Tri-State Award. Arkansas winners are announced amid much ceremony at the Governor’s Cup Awards Luncheon. This year on April 19 at the Wally Allen Ballroom of the Statehouse Convention Center, Arkansas Capital will host more than 800 business leaders, students, educators and supporters from across the state. Joshua Baker, team leader for the 2015 team, “Agricultural Innovations” of Arkansas State University was a big winner in last www.talkbusiness.net
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Industry: Governor’s Cup year’s graduate contest, taking the overall business plan award as well as the Graduate Delta Plastics Innovation Award and the Agriculture Award. At the state level, the team won more than $30,000 overall, and was sent to compete at TriState. They did not win as a team in Vegas; however, Baker won the individual “Elevator Pitch” competition there, which requires selling your product in 90-seconds or less. Since competing, Baker and his team members have stayed busy with post-college careers. They have remained in touch and still have plans for future development of their Governor’s Cup product. Called Wells Vision, the winning product is a sensor-driven, solar-powered automated irrigation system that would allow farmers to remotely monitor and control the watering of their fields. “The money and the knowledge from this contest will enable us to move forward when we are ready,” assures Baker, a new father who works full-time as a crop consultant out of Lake City. Baker and fellow Agricultural Innova-
tions members Kenneth Rains, Dirk Tanner, Justin Bagley and Franklin Kelley worked on their product under the advisement of Professor Erick Chang, Ph.D., of ASU. Of the contest, Baker stresses, “It’s a
“It’s a tough competition, but one of great value.” – Carol Reeves
University of Arkansas once-in-a lifetime opportunity for college students. Building a business plan not only helps you strengthen areas in which you’re strong, but also identifies and pushes you to improve in weaker areas. “The individuals at Arkansas Capital and
AEAF were genuinely interested in our success and providing the means for us to succeed. The Governor’s Cup provided me with knowledge to start my own business and improved my chance of success.” CHANGES COMING Currently funded in large part by a grant from the Donald W. Reynolds Foundation, the Governor’s Cup is gearing for change as the foundation prepares to expend its money and cease operations within the coming 12 to 24 months. “When the Reynolds Foundation took an interest in the Governor’s Cup competition, it was such a complement,” says Walls, adding that to that point, Reynolds had mostly funded brick-and-mortar projects. “Mr. Reynolds personified entrepreneurship, and our focus on that caught their eye, and it has worked out really well.” Once Reynolds Foundation funding runs out, it’s not yet clear where the bulk of the funding will come from. Oklahoma and Nevada are searching for their next source
The Clinton Presidential Center’s newest temporary exhibit includes photographs, film, and memorabilia from dozens of American Olympic athletes, and significant material related to American Presidents, just in time for the Rio 2016 Olympic Games.
March 12 – September 11, 2016
www.clintonfoundation.org/AmericanChampions 1200 President Clinton Avenue • Little Rock, AR 72201 Photo: Clinton Presidential Library
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TALK BUSINESS & POLITICS | MARCH/APRIL 2016
of capital, according to Walls, as is Arkansas. “We feel it must keep going here in Arkansas, but we don’t have an exact answer yet. We’ve reached out to some entities that we would think might want to step up
Reeves’ years as an adviser have positioned her to watch the competition mature. She has been impressed with the level of competition over the years. “The level of preparation required is significant. It’s a
“It’s a once-in-a lifetime opportunity for college students. Building a business plan not only helps you strengthen areas in which you’re strong, but also identifies and pushes you to improve in weaker areas.” – Past winner
Joshua Baker and keep this going, but we’re not tied to anything yet. Our door is open to speak to groups who want to step into the position that Reynolds has been in,” he said. For businesses and investors interested in helping this competition continue in Arkansas, there are a number of ways to become a sponsor: helping with competition costs, providing cash pool prizes, or, yes, even succeeding the Reynolds Foundation. FOR STUDENTS, FOR THE STATE The value of the contest to students and to Arkansas is unparalleled, according to Carol Reeves, associate vice provost for entrepreneurship at the University of Arkansas. Reeves has five teams competing this year alone. “My teams this year have already been accepted to a national business plan competition, which is quite an achievement. They are working on significant problems – bladder cancer, hearing damage, appointment cancellations in clinics, depression and PTSD, and sport-specific training – and have developed innovative approaches to addressing them.” Since 2002, Reeves has advised 64 teams (60 graduate, four undergraduate) and has watched 13 of them go on to start their companies in earnest in Arkansas. Movista (www.movista.com), one of many examples, competed in 2008 as MerchantEyes. It now employs more than 30 Arkansans in highwage jobs.
tough competition, but one of great value. Successful teams today must show a significant market opportunity and proprietary technology to address that market. Almost all of the finalist teams today are candidates for private investment.” “Some of my students found out that the company concepts they competed with were not viable,” Reeves said. “Rather than pursuing a business that was likely to fail, they used the skills and knowledge gained through the Governor’s Cup to pursue more viable ventures. “Regardless of whether students pursue businesses, they have developed skills that employers crave … they know how to work hard, have strong analytical skills and can communicate. I think Northwest Arkansas is a different place for startups now than it was 10 years ago, and much of the new energy here has derived from the Governor’s Cup.” Stuart McLendon, CFO Network and Governor’s Cup judge, adds to the discussion of the state as a whole. “We’ve had a lot of great companies come out of this state, disproportionate to our size,” says McLendon. “The competition continues to foster that environment and give students that are wrapping up their academic careers the opportunity to interface with business leaders and executives from all different walks of life. It gives them real-world experience … They’re having other people who have been there and done it before kick the tires
of their ideas and their execution, and that puts them in a much stronger place to be able to succeed in the future.” According to Walls, the message to students looking at this competition – or those looking to invest in it – is the same today as it was when the contest started. “It’s about keeping business in Arkansas. We’ve had an incredible history of entrepreneurship of all types, and we still do,” he said. “Like Tyson, like Walmart, like Jane Doe at the coffee shop, you can have the resources here, the people who can support you here, and the capital here, to be the next incredible success story. You don’t have to go somewhere else. You can do it here in Arkansas.” For more information, check these websites: dwrgovernorscup.org and www.arcapital.com.
Participating Colleges & Universities This year, the Arkansas Capital Corp. has received intents to compete from 45 teams representing these 13 colleges and universities: Arkansas Baptist College Arkansas State University-Jonesboro Arkansas State University-Beebe Arkansas Tech University Harding University Henderson State University Hendrix College John Brown University Ouachita Baptist University Southern Arkansas University University of Arkansas-Fayetteville University of Arkansas-Little Rock University of Central Arkansas www.talkbusiness.net
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Industry PHOTO COURTESY OF NATIONAL PARK COLLEGE
Berry Plastics employees John Altimus and Araceli Barajas operate the mechanical systems trainer in the National Park College industrial technology lab.
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The Path to Recovery State’s manufacturing sector navigates the industry headwinds and retools in the midst of a technology paradigm shift. By Wesley Brown
A
lthough Arkansas’ travails in the manufacturing sector are well-known, several initiatives by state workforce and higher education officials and top employers are starting to gain traction in the highly competitive global marketplace to retain and attract better-paying factory jobs. The result, experts say, will likely mean that the state’s manufacturing workforce of the future will be leaner and consist of highly-skilled and technology-savvy workers who are able to produce more goods and bring products to market quicker. The next-generation manufacturing plants, they say, will stand in stark comparison to traditional assembly line-type factories that dramatically grew Arkansas’ middle class in the years between the Rockefeller and Clinton administrations. That paradigm shift was recently highlighted in an ongoing “Next Manufacturing” series by PricewaterhouseCoopers (PwC) that tracks the key issues and potential disruptions facing manufacturers – from contract job shops to large diversified multinationals – as they reinvent themselves. The series of reports builds on the premise that in the last several years a lot has changed for manufacturers. “Shifting economic alignments, changing customer expectations and new (and cheaper) technology beg a new look at old assumptions and a view to new tipping points of transformation on the horizon,” the report states. In PwC’s recent 2016 Industrial Manufacturing trends, consultants Stephen Pillsbury and Robert Bono point out that despite market uncertainty, manufacturers must weather the risk that comes with embracing new technologies. “Manufacturing may be facing some headwinds, but it’s undeniably in the midst of a technological renaissance that is trans-
forming the look, systems and processes of the modern factory. Despite the risks – and despite recent history – industrial manufacturing companies cannot afford to ignore these advances,” the report states. “By embracing them now, they can improve productivity in their own plants, compete against rivals and maintain an edge with customers who are seeking their own gains from innovation.”
“Manufacturing may be facing some headwinds, but it’s undeniably in the midst of a technological renaissance that is transforming the look, systems and processes of the modern factory.” – From a PricewaterhouseCoopers report on manufacturing trends. ADMINISTRATION’S GOALS Still, the rapid decline in the number of manufacturing jobs in Arkansas and across the U.S. since the Great Recession has created enough alarm in recent years that the Obama administration and industry trade groups have developed programs and campaigns to maintain the industry that many consider to be the backbone of the U.S. economy. According to data from the U.S. Bureau of Labor statistics, U.S. manufacturing employ-
ment has declined since its peak in 1979, with moderate losses through the late 1990s, mostly caused by higher manufacturing productivity relative to the rest of the economy. In the 2000s, however, with the rise of China and the new globalization, U.S. manufacturing employment experienced a decade of unprecedented losses, shedding 5.8 million jobs, or about a third of the workforce, according to a January 2015 report by the Information Technology and Innovation Foundation. Recognizing that the U.S. was losing ground in the fiercely competitive global marketplace, President Obama announced the National Network for Manufacturing Innovation (NNMI) in March 2012 to build a network of up to 15 Institutes for manufacturing innovation around the country, serving as regional hubs of excellence to make U.S. manufacturers more competitive and encourage investment. At the time, the president set a goal of creating 1 million new manufacturing jobs in his second term. Since then, with a budget of $1 billion, NNMI has rolled out seven new manufacturing institutes across the country, bringing together manufacturers, universities, community colleges, federal agencies and state organizations with the goal of bridging the gap between basic research and product development. Two more are in the works. “Our new institutes will build on the success of the existing seven, and for the first time, the topic areas have not been chosen in advance but will depend on industry interests and input. Together, our growing network of institutes will ensure America remains on the leading edge of the 21st century economy,” said U.S. Secretary of Commerce Penny Pritzker. More recently, the Commerce Department’s National Institute of Standards and www.talkbusiness.net
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Industry: Path to Recovery Technology (NIST) opened competition in February to award new cooperative funding agreements for its Hollings Manufacturing Extension Partnership (MEP) centers in Arkansas, 11 other states and Puerto Rico. Arkansas Manufacturing Solutions (AMS), a program of the Arkansas Economic Development Commission, serves as the NIST-MEP center in the state and is eligible for $4.856 million in the five-year program. MANUFACTURING EVENTS As the federal government has become more engaged in reinventing and reinvigorating the nation’s manufacturing base, industry groups have also stepped up to the plate in recent years with national campaigns and other events promoting the declining sector. The biggest event has been National Manufacturing Day each fall, which seeks to improve public perception of manufacturing in America by coordinating awareness-raising activities at a variety of locations across the country. In 2015, there were nearly two dozen events in Arkansas that observed the national day to honor local manufacturers. Nationwide, there were 1,400 events held where the public and private sectors came together to address challenges and concerns for U.S. manufacturers while also celebrating the industry. Earlier this month, the National Association of Manufacturers (NAM) kicked off its “Power of the Small” campaign as part
of a nationwide manufacturing tour that showcases modern U.S. factories across the U.S. The nation’s largest manufacturing trade group’s new campaign is aimed at highlighting the critical role small- and medium-sized manufacturers play in fueling the broader U.S. economy. “America was made great by small manufacturers with big dreams,” NAM President and CEO Jay Timmons said. “Our success as a country depends on these companies.” In Arkansas, there are also a number of workforce, education and industry initiatives aimed at bolstering the blue col-
“At Lockheed Martin, we are engineering – and building – a better tomorrow. And to get there we need a deep bench of skilled employees with a passion for continuous improvement and innovation.” – Colin Sterling, director of operations for Lockheed Martin at Camden. PHOTO COURTESY OF NATIONAL PARK COLLEGE
Angelia Taylor and Michael Bennett, both employees of Berry Plastics, operate the industrial controls trainer in the industrial technology lab at National Park College at Hot Springs.
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lar-friendly sector that only a decade ago was the state’s top job-producing sector. However, post-recession, the state lost about 14% of its industrial employment between September 2007 and September 2013, with a blip of a slight gain of 645 jobs between that period and the end of 2014. Between January 2015 and September 2015, Arkansas shed another 1,354 industrial jobs, continuing the post-recession slump that has shrunk the number of factory-related jobs across the state since 2007, according to Manufacturers’ News, Inc., a respected industrial database and directory. “While many states have seen strong post-recession growth, Arkansas has struggled to come back from the downturn,” said Tom Dubin, president of Manufacturers’ News. “Although the state’s low cost of doing business and abundant natural resources has appealed to many companies, a shortage of skilled workers as well as a stronger dollar has put a dent in growth.” WORKFORCE INITIATIVES Despite those gloomy statistics, Gov. Asa Hutchinson kicked off a sweeping economic development initiative at the beginning of his administration that he said represented a fundamental shift in the state’s workforce development efforts. In April 2015, he signed three workforce development bills that he called the foundation of his efforts to retool state job recruitment endeavors. The governor’s initiative received a big boost in October 2015 when the state Department of Workforce Services (DWS) announced more than $4 million in awards to Arkansas Community Colleges (formerly the Arkansas Association of Two-Year Colleges) as part of its Arkansas Sector Partnership program. “The goal of the Arkansas Sector Partnership initiative is to leverage partnerships and align state and local resources to deliver sector-based training programs that meet the workforce needs of key industries in Arkansas’ regional labor markets,” DWS Director Daryl Bassett said. Meanwhile, one of the community colleges that has taken the lead in promoting the state’s manufacturing sector is National Park College (NPC) in Hot Springs, which
has hosted a number of activities in the past year aimed at highlighting the sector. In June 2015, NPC, the Hot Springs Metro Partnership and AMS hosted the Spring Manufacturing Summit at the local community college. NPC’s president, Dr. John Hogan, said the event allowed area manufacturers an opportunity to learn more about each other and define some common challenges. NPC hosted the Young Manufacturer’s Academy for 22 area middle school students in August 2015, which included a LEAN manufacturing simulation with AMS and an introduction to mechanical design through a bridge-building game. Hogan said future discussions will allow regional partnerships to form and provide an opportunity for employers to identify emerging trends in workforce development, supply chain and other industry-wide challenges. He also noted NPC offers a number of two-year programs that provides students with the necessary skills to find good-paying manufacturing jobs in aerospace and industrial technology, engineering, computer programming, biochemistry and robotics. “Manufacturing is a vital part of the workforce and economic development for Garland County,” he said. “At NPC, we see our role as helping business and industry educate the workforce through programs we teach every day and also through customized workforce development programming.” EMPLOYERS’ EFFORTS But the biggest investment into Arkansas’ declining manufacturing base has come from many of the state’s largest employers, which highlight the work of Arkansas’ labor pool in the competitive global workplace. For example, Japan-based auto parts giant Denso Corp. has developed a robotics subsidiary in Long Beach, Calif., and has ramped up marketing of the company’s robotics systems that are used for precision assembly, manufacturing, product testing and quality assurance by manufacturers across the globe. According to Denso, more than 77,000 of the company’s robots are used by companies worldwide, including those at the company’s 224,000-square foot manufacturing
operation in Osceola that produces heating, ventilating and air conditioning (HVAC) assemblies and modular radiators. In Fort Smith, Baldor Electric officials say
students and guide them into technical degree programs, company spokesman William Sudlow said. Sudlow added that Lockheed Martin’s PHOTO COURTESY OF LOCKHEED MARTIN
A Lockheed Martin quality inspector verifies final torque requirements on a PAC-3 missile. Lockheed Martin’s Camden Operations facility maintains a high workforce retention rate through a culture of training and career development that keeps employees engaged.
the key role robots play in the company’s manufacturing process is improving safety, productivity and quality costs. Chris Hoyle, general product manager at Baldor, said at a manufacturing summit last year that the company’s electric motor division implemented robotics across most of its entire electric motor operations, which includes the 1,150-employee manufacturing plant in the city. Doyle said robots are mainly used in the Fort Smith operations for “moving and lifting” heavy motor parts from one location to the next. “It has been a huge benefit to us for a variety of reasons,” Doyle said. “We are more efficient and safe, and our quality is a whole lot better because of robotics.” In South Arkansas, defense giant Lockheed Martin has also introduced some advanced manufacturing innovations at its sprawling missile production plant in East Camden. According to company officials, their Camden operations have a robust outreach program to support STEM (Science, Technology, Engineering and Math) development. In the short term, the company is working to increase the number of college freshmen entering Lockheed Martin target degree programs. The long-term goal is to build pipelines from kindergarten to 12th grade that identify and support promising
highly competitive salary and benefits package, combined with a commitment to employee development, education and training, has positioned its Camden operations as a highly desirable employer and enhances its ability to retain a skilled workforce. For example, the defense giant’s Camden operations recently implemented new “millennial” training that focuses on the changing dynamics of millennials entering the workforce. The training is structured to two audiences: new millennial employees to help them understand the different generational styles of their peers, and existing employees to help them understand the leadership skills that will help retain millennials. “At Lockheed Martin, we are engineering – and building – a better tomorrow. And to get there we need a deep bench of skilled employees with a passion for continuous improvement and innovation,” said Colin Sterling, director of operations for Lockheed Martin at Camden. “We want to fill our talent pipeline with local candidates, and to that end we are encouraging students from kindergarten on to consider high-tech careers. Our STEM outreach to area schools is centered on exciting the imagination of a future engineer or encouraging a student to pursue a high-tech production career.” www.talkbusiness.net
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Industry PHOTOS: DOLLARPHOTOCLUB
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Our es Forward
thcare providers, businesses, communities depend on us.
s to be fed, critical business There is commerce to advance tional economies to grow.
e lives to be lived. y day.
Sponsored by:
f Arkansas’ communities trucking for delivery of their nd life’s necessities.
and women of the Arkansas are proud to drive our r state and our nation arkansastrucking.com
Drivers Legal Plan
Inaugural report shows broad declines in train, plane and river traffic, Drivers Legal Plan with trucking industry watchers nervous about 2016. By Talk Business & Politics Staff Editor’s Note: Featuring trends and data impacting one of the state’s most important industry sectors, this report by the Talk Business & Politics staff is presented through underwriting by the Arkansas Trucking Association and the Arkansas State Chamber of Commerce/Associated Industries of Arkansas. This compilation of data and news regarding the trucking, railroad, airline and river barge industries offers unique insights into the current state of the economy.
30% from the 1.003 million tons in December 2014. The biggest hit in 2015 was with outbound shipments. Shipments from ports along the Arkansas River to areas out of the river totaled 3.216 million tons, down 28% compared to 2014. Inbound shipments totaled 4.436 million, down 5% compared to 2014. Shipments to and from ports on the river system (internal) totaled 2.309 million in 2015, down 11% compared to 2014.
RIVER TRAFFIC DOWN Thanks to unusual amounts of rainfall in 2015, tonnage on the Arkansas River was down 15% compared to 2014, and fell below 10 million tons for the first time in at least four years. Information from the U.S. Corps of Engineers shows that 9.962 million tons were shipped in 2015. Tonnage totaled 11.719 million tons in 2014, down from the 12.139 million in 2013 but better than the 11.687 million in 2012 and the 10.6 million in 2011. The Arkansas River system is 445 miles long and stretches from the confluence of the Mississippi River to the Port of Catoosa near Tulsa, Okla. The controlled waterway has 18 locks and dams, with 13 in Arkansas and five in Oklahoma. The river also has five ports: Pine Bluff, Little Rock, Fort Smith, Muskogee, Okla., and the Port of Catoosa. December tonnage was 702,640 tons, down
ATA AND CASS Reports are mixed on activity in the national shipping industry at the end of December, but market watchers are not optimistic about the sector getting off to a good start in 2016. The American Trucking Associations’ Truck Tonnage Index was up 1% in December following a 0.9% dip in November. For all of 2015, the seasonally adjusted tonnage was up 2.6% compared to 2014. The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 132.7 in December, 2.9% above the previous month. “Tonnage ended 2015 on a strong note, but it was not strong for the year as a whole,” ATA Chief Economist Bob Costello noted in his report. “With year-over-year gains averaging just 1.2% over the last four months, there was a clear deceleration in
truck tonnage.” Costello also reiterated his concern about high inventory levels. “At the expense of sounding like a broken record, I remain concerned about the high level of inventories throughout the supply chain. The total business inventory-to-sales record is at the highest level in over a decade, excluding the Great Recession period. This will have a negative impact on truck freight volumes over the next few months at least. And, this inventory cycle is overriding any strength from consumer spending and housing at the moment.” Trucking serves as a barometer of the U.S. economy, representing 68.8% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled just under 10 billion tons of freight in 2014. Motor carriers collected $700.4 billion, or 80.3% of total revenue earned by all transport modes. The Cass Freight Index showed shipments in December were down 3.7% compared to December 2014 and down 4.9% from November. Shipment costs were down 5.2% compared to December 2014 and down 2.7% compared to November. Rosalyn Wilson, a supply chain expert and senior business analyst with Pasadena, Calif.-based Parsons, who provides economic analysis for the Cass Freight Index, said the national shipping industry in 2015 was not as robust as it was in 2014. www.talkbusiness.net
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TALK BUSINESS & POLITICS | MARCH/APRIL 2016 MPI 3737
Industry: Transportation Report “The declines are not unusual for December, but they capped off a second quarter of decline. In retrospect, 2015 did not even begin to reach the heights we reached in 2014. By the end of 2015, both shipment volume and expenditures fell back to 2013 levels. Expenditures for freight transportation were 5.2 percent lower than at the end of 2014 and shipment volume was down 3.7 percent,” Wilson said in her report. Cass uses data from $26 billion in annual freight transactions to create the Index. The data comes from a Cass client base of more than 350 large shippers. Wilson said issues that caused declines in 2015 are not likely to abate in early 2016. “With manufacturing slowing, inventories high, companies rationalizing employees and a six‐month slide in freight volume and expenditures, 2016 will get off to a slow start,” she noted. CARS, CHEMICALS ON CARGO RISE Railcar traffic in January totaled 968,042 carloads, down 16.6% from January 2015 thanks to double-digit declines in energyrelated commodities shipped, according to the Association of American Railroads (AAR). U.S. railroads also originated 1,039,621 containers and trailers in January 2016, up 3.4% or 34,523 units from the same month last year. For January 2016, combined U.S. carload and intermodal originations were 2,007,663 down 7.3% or 158,224 carloads and intermodal units from January 2015. In January 2016, four of the 20 carload commodity categories tracked by the AAR each month saw carload gains compared with January 2015. This included: • miscellaneous carloads, up 45.2% or 7,409 carloads; • chemicals, up 2.1% or 2,615 carloads; and • motor vehicles and parts, up 3.9% or 2,435 carloads. Commodities that saw declines in January 2016 from January 2015 included: • coal, down 33.3% or 150,658 carloads; • petroleum and petroleum products, down 19.4% or 12,037 carloads; and • crushed stone, gravel, and sand, down 10.3% or 8,475 carloads.
Following are tonnage numbers for the largest categories of items shipped on the river: Sand/gravel/rock 2015: 2.732 million tons 2014: 3.094 million tons
down 14%
Chemicals/fertilizer 2015: 2.135 million tons 2014: 2.389 million tons
down 11%
Iron and steel 2015: 1.475 million tons 2014: 1.659 million tons
down 11%
Soybeans 2015: 1.218 million tons 2014: 1.289 million tons
down 6%
Arkansas River Tonnage 2015: 9.962 million tons 2012: 11.687 million tons 2014: 11.719 million tons 2011: 10.58 million tons 2013: 12.139 million tons
January 2016 North American rail and intermodal traffic compared to January 2015 U.S.
Railcar:
down 16.6%
Intermodal:
up 3.4%
Canada
Railcar and intermodal:
Mexico
Railcar and intermodal:
down 6.5% up 1.3%% www.talkbusiness.net
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Industry: Transportation Report Excluding coal, carloads were down 5.9%, or 42,089 carloads, from January 2015. Canadian railroads reported total January rail traffic volume of 513,716 carloads, containers and trailers, down 6.5% from January 2015. Total January volume on Mexican railroads for the first four weeks of 2016 was 109,401 carloads and intermodal containers and trailers, up 1.3% compared to January 2015. “Intermodal was solid in January, but carload volumes weren’t what railroads were hoping for,” AAR Senior Vice President of Policy and Economics John Gray said in a statement. “By all accounts, rail service right now is excellent, but volume just isn’t there. At some point, the problems currently plaguing the energy and manufacturing
sectors – low oil prices, a strong dollar, uncertainties in emerging markets – will sort themselves out. When that happens, railroads will be positioned to provide safe, reliable service.” The month did not end on a high note for the rail industry in North America. Total U.S. weekly rail traffic for the week ending Jan. 30, 2016, was 512,746 carloads and intermodal units, down 6.5% compared with the same week in January 2015. Carload traffic was down 16.6%, with intermodal volume up 5.5%. Canadian railroads reported 69,901 carloads for the week, down 12.4%, and 61,982 intermodal units, up 0.8% compared with the same week in 2015. Mexican railroads reported 16,855 carloads for the week,
ENPLANEMENT HISTORY (Clinton National Airport-Little Rock) 2015: 2014: 2013: 2012: 2011: 2010:
996,837 1.038 million 1.085 million 1.147 million 1.103 million 1.124 million
2015:
996,837
ENPLANEMENT HISTORY
(Northwest Arkansas Regional Airport) 2015: 643,320 2014: 640,537 2013: 581,487 2012: 565,045 2011: 562,747 2010: 570,625
2015:
643,320
ENPLANEMENT HISTORY (Fort Smith Regional Airport) 2015: 86,704 2014: 92,869 2013: 84,520 2012: 86,653 2011: 86,234 2010: 86,129
2015:
86,704
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up 0.7%, and 11,141 intermodal units, down 3.2%. XNA SETS TRAFFIC RECORD It was a mixed bag for Arkansas’ three largest airports in 2015. Clinton National Airport in Little Rock fell below a million enplanements, the Northwest Arkansas Regional Airport (XNA) for the second consecutive year set a new record for traffic and the Fort Smith Regional Airport saw traffic fall more than 7%. After three months of increases, Clinton National Airport in Little Rock saw a decrease in passengers in December. Officials cited weather-related cancellations at destination airports for the majority of the monthly decrease. For 2015 on the whole, enplanements totaled 996,837, down 4.29%. Roughly 1.9 million people flew in and out of Little Rock last year. That’s approximately 89,000 fewer than 2014. Enplanements were below 1 million, the first time enplanements dropped below the million mark since 1991. Much of that falloff is attributed to the consolidation of airlines, and by extension their hubs, as well as the repeal of the Wright Amendment, which forced planes from Love Field to fly only in Texas or an adjoining state. Northwest Arkansas Regional Airport was also down in total travelers for December 1.21%. However, for 2015 the airport had 643,320 enplanements, up 1.09% for the year. A total of 1.29 million people flew in or out of XNA last year. Enplanements were up nearly 2,800 passengers. A third of the traffic at XNA was on American Eagle (32.75%). United Express (13%) and US Air (9%) were a distant second and third in passenger count. XNA’s first full year of traffic was 1999, and the airport posted eight consecutive years of enplanement gains before seeing a decline in 2008. Enplanements at the smaller Fort Smith Regional Airport totaled 86,704 in 2015, down 7.1% compared to 2014. The 2014 traffic was 92,869, the first time the airport had topped the 90,000 mark since 2007. December enplanements in Fort Smith were 6,315, down from 7,409 in December 2014.
Spring Trainings
Visit: www.MFGSolutions.org/calendar.asp for more info ISO 9001:2015 and Baldrige: The Integration of Quality Management Systems and Processes
Learn how to leverage the new ISO 9001:2015 accreditation process to a higher level of organization excellence. Insights from Baldrige Excellence provided at this workshop will help manufacturers move from minimal compliance to realizing the benefits of an overall strategy for excellence. March 2-3, 2016 - World Trade Center - Rogers, AR - Cost: $199 March 29-30,2016 - ASU Delta Center - Jonesboro, AR - Cost: $199
Lean 101 - Principles of Manufacturing with Simulation
Lecture and hands-on simulations introduce Lean Tools and techniques that improve productivity, quality at the source, service, and workforce practices. March 2, 2016 - ASU Delta Center - Jonesboro, AR - Cost: $250
Foundations of Industrial Energy Efficiency
This training program is intended to provide facilities personnel, energy managers, engineers, and utility representatives with both basic and intermediate understanding the latest energy efficiency methods, procedures, and best practices. March 2, 2016 - UA Fayetteville - Fayetteville, AR - Cost: $30
Toyota Kata with Simulation
Participants will leave this workshop with a functional knowledge of the principles of Toyota Kata, the next evolution of Lean Enterprise Transformation, being utilized by high performance firms around the world. April 13, 2016 - ASU Delta Center - Jonesboro, AR - Cost: $300
Training Within Industry (TWI) Overview
TWI was used in Japan during post World War II rebuilding. It is still in widespread use, most notably as part of the Toyota Production System. May 11, 2016 - ASU Delta Center - Jonesboro, AR - Cost: $250
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Arkansas Blue Cross and Blue Shield executives Mark White (left) and Curtis Barnett share their thoughts on changes in the health-care industry.
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TALK BUSINESS & POLITICS | MARCH/APRIL 2016
Feature
A conversation with Arkansas Blue Cross and Blue Shield CEO Mark White and CEOelect Curtis Barnett. By Steve Brawner PHOTOS: BOB OCKEN
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urtis Barnett was announced as Arkansas Blue Cross and Blue Shield CEO-elect in December and will be mentored this year by current CEO Mark White, who is retiring at the end of 2016. Barnett will gain experience in dealing with external constituencies, including the Blue Cross and Blue Shield Association and elected officials – the same areas where White lacked experience when he was named CEO-elect in January 2008 and spent a year in training.
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Feature: Health Care Barnett previously has served as senior vice president of internal operations, where he has managed claims administration, customer service and other core administrative services. Of the company’s 2,800 employees, half have reported to him. Talk Business & Politics interviewed both executives Jan. 14. Among the takeaways: If the state opts for a managed care model for part of its Medicaid processes, Blue
Cross intends to compete for that business. Answers are edited for space and clarity. TB&P: Mark, what did you learn when you were CEO-elect? White: You know, the internal things I knew pretty well, and my predecessor, Bob Shoptaw, and I officed next to each other for years, but the external pieces were really the things that I wasn’t that familiar with. …
Associate Professor and Primary Care Doctor, Tobias “Toby” Vancil, M.D. (second from left) in clinic with student and patient
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/APRIL 2016 1 TALK BUSINESS & POLITICS | MARCH 56U768-040249-03_Academic_TalkBus_Vs3.indd
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Those are probably the keys. Barnett: It’s kind of like if you had a Y axis, you know, it goes to a 100%. Mark starting out the year is here, and I’m down here, and over the course of the year, I’ll ramp up and he’ll not ramp down, but certainly will defer to me in a lot of cases to take the lead on different issues. And so, probably some time as Mark was saying, it would probably be in a year or so, that especially those decisions that extend out beyond Jan. 1, 2017, I’ll take the lead on those. Mark will be there available to me to be a sounding board and give advice and guidance, and really what we’re trying to accomplish is by Jan. 1, 2017, we’ve had a smooth transition, we’ve not missed a beat. TB&P: How will Blue Cross look different in five years? White: Directionally, I think. Curtis, if you think about some of the tools we’re wanting to build as far as outreach so you can take your smartphone and connect and find a doctor, can schedule appointments, can get results of your lab tests, can get referrals. So we’re engaged in building consumer outreach capability, which to me will make a different experience. Traditionally, we were more focused on the group contact. I guess our group benefits administrator was our principal customer. Barnett: Exactly. White: Now, the shift is toward the individual. … You’ve probably heard about medical homes, and we’ve been engaged with that for three or four years now – first in some prototypes, and now to a broader rollout. But back in the ’90s, I guess, when HMOs were kind of becoming mainstream, every individual had to select a primary care physician, and there was some backlash on that and a backlash on managing care, and we’ve moved away from that, not only as an organization but as an industry. And now we’re going back to, you need to select a primary care physician who’s really going to be your quarterback for managing your care relationship whether you’re a healthy individual or an individual with multiple morbidities. So medical homes are around that. … We want to push information to the customer, (and) we also
want to push information to your physician in that medical home to enable them to provide better care and a better care experience. TB&P: How will health care change in the next five to 10 years? Barnett: Moving more toward an individual or consumer-based market. I think that’s going to occur, and it is occurring, and it will continue to occur. While we haven’t seen it happen dramatically in this state, the decline in the small group market, with employers of size 50 and below, we’ve seen some markets around the country where that’s declined significantly. We think there’s a good chance that will eventually happen in Arkansas as well, and (those individuals will) move to the exchanges, for example, to purchase health insurance. So we think that really the growth of the consumer, the individual market, will continue to happen going forward. We think that the large account, or the large group market, will continue to be viable going forward as well. Then certainly the government, or government-sponsored programs – that would be Medicare Advantage or the Medi-Pak supplement-type products. And so those will be three of the major market segments that we see in the future that are likely to emerge, and we’ll certainly be responding to that market, those market conditions, and changing our company in order to do that successfully. TB&P: If the system becomes more consumer-driven, how do you feed information to a patient? If I’m in the doctor’s office in a gown and the doctor says he’s sending me somewhere, how do I say I need to check and see if somewhere else is cheaper? Barnett: That goes back exactly to what I was mentioning a moment ago, when I said our focus is on making sure that experience is simple, positive, and so what can we continue to do … to push information out to our customers and to our members in ways that they want to see it, and they feel comfortable accessing that? And so some of that will be digital, some of that will be through the Web, that provides them with
the tools that they need, and we’re constantly working to make sure that it’s very understandable, very relevant to them. But then that does have to be backed up by a team of people who are experts, who are knowledgeable and that people can trust and be that trusted source to help them out through the process. And a big part of that is those people also have to be empathetic and care about the people that they’re serving.
TB&P: What do you hope happens with the private option-Arkansas Works debate? White: Let me take the first shot, and I would say that we think that the private option program has been a positive for the state from the standpoint of 200-plus thousand individuals who have insurance coverage or access to care that they didn’t have before. … The other thing that it’s done, it’s made a significant impact on
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Feature: Health Care uncompensated care in hospitals and in physicians’ offices where they had a number of their customers who weren’t able to pay for services regardless of the price. So to me, that’s a positive move. … We think it’s been positive from a standpoint of our organization. We had 150,000 members last year between the private option and the regular (Affordable Care Act) market. That provides some scale, and we think we’ve represented those customers
well in helping them identify the health care system, connect with the health care system, get the services they need and be sure that their service needs and their claims are handled appropriately. So from that perspective, I believe it’s good. Now the challenge, of course, is political and financial. I know one side of the debate is that, how are we going to afford the private option as a state longer term when it’s not fully funded by federal dollars? My
view of that is that it’s going to be around a billion dollars a year, I think, total funding for all individuals in there. It is going to cost the state at some point in time 10% of that number. If you think about the positives, Mark White
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you think about moving the health status of individuals long term, you think about the economics around that billion dollars flowing into our economy, I believe that’s going to create enough outcome from that or enough engine from that to help the state afford that 10% share. Barnett: Generally, we’re very supportive of what the governor’s proposing. I think from our perspective, I think where we have maybe a concern is there is the devil in the details with regard to the policy changes that come out of the work that he and his staff will do with (the federal Centers for Medicare and Medicaid Services). We think it’s going to be critical to have a public-private collaboration, a partnership approach to implementing the changes that do come out of the program. … TB&P: But your view would be to get rid of it and have nothing in its place would be bad? Barnett: Yes. White: Absolutely.
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TALK BUSINESS & POLITICS | MARCH/APRIL 2016
TB&P: What do you think about the debate over whether or not Medicaid should have a private managed care provider administer some services? Barnett: That’s something that we’ve
watched closely throughout the process and are very interested in. And we do see that that special needs population that’s been identified needs to have probably stronger intensive care coordination than they currently have through the process. Now one way of achieving that is through the expansion of the patient-centered medical homes, and we’ve been a big part of that and supportive of that as well. But I think as an organization as we’ve looked at this and watched this, we feel that if the state does want to move toward managed care for that population, then we certainly intend to be fully involved with that. TB&P: So you all might actually try to … Barnett: Compete for that business, yeah. TB&P: Wow. Have you done that before? Barnett: We’ve not, but we’ve looked at relationships, arrangements, with other Blue Cross Blue Shield plans who are in that space today and who do that very sucAHCA ad half page horizontal.pdf 1 cessfully. And we would look at joining in a
partnership approach with them to provide that service. We think a lot of the things that we do here in the state and do very well with our provider relationships and our partners and some of the payment programs we already have in place would dovetail to some of the managed care programs. So we feel we’d be very successful at this if we got into it. TB&P: The health-care industry is in such flux. How do you plan? White: Well, you know, Yogi Berra said, if there’s a fork in the road, you take it, and we just plan for both forks in the road and try to anticipate that. If you think about the likelihood of repeal of Obamacare, to me, I think that’s not as likely as maybe some of the candidates would say. I believe that there would be a thoughtful review of that, and it would be more likely a modification of it that political leaders would say, “I don’t like these pieces of it. Let’s change those. I like these pieces of it. We’re going to keep 08/20/15 9:55 AM those, or we’re going to modify those.” So
Arkansas nursing homes provide round-the-clock quality care for 35,000 patients and residents in over 229 skilled nursing facilities throughout our state. What’s more, nursing home organizations create and support 22,929 jobs statewide, providing a direct
I’m thinking that’s probably a more likely scenario going forward. Barnett: The other thing you have to do as a company is, you have to build agility into your way of thinking, and recognizing just Curtis Barnett
what you said, that change, and some of it unforeseen change, could be right around the corner.
Quality care for
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Leadership
Sixth Sense:
Time Management Tools Since we seem to receive way too many emails, distractions and temptations, we’re always looking for great tips on time management. So – hoping our future leaders can bring us up to date – we decided to ask six busy college students what technologies and methods they’re using to expedite the process of keeping a schedule. Here are their suggestions. By Bill Paddack
Matthew Seiter
Jayla Wilson
Tanner Bone
College has shown me that it is very easy to overload yourself with responsibilities. There’s class of course, but I also have a 25hour workweek along with many organizations in which I’m involved. With so many obligations, I find it’s necessary to keep myself organized. Several smartphone apps are useful. One is Remind, an app that streamlines communication between a teacher and his or her students, which helps me greatly. For dates and file sharing, you can’t beat Google’s group of apps – Google Calendar, Drive, Docs, Sheets and Slides. You can create a group with whoever you want as long as they all have a Google email and share information across all of their apps. This helps you all be on the same page by allowing access to information to everyone. But my most useful planning device isn’t on my phone. I rely on a planner for most of my organization. Writing things down with pen to paper helps it stick in my mind. I keep it with me at all times. Even with all the technology we have available, I’ve found the old school method to be the most effective.
When I first began school, upperclassman told me that there were three S’s associated with college, and I would only have time for two. The three S’s are studying, socializing and sleeping. I valued all three way too much to let one fall to the wayside. Therefore, I had to find ways to manage my time. I’m also very forgetful, so I set alarms and reminders for everything. I don’t find writing things in a planner very beneficial because you can easily lose the planner, and unlike the reminders on my phone it won’t ring 15 minutes before it’s time for me to go somewhere. I also have my reminders connected to all my smart devices, so in the unlikely occasion that I lose my phone I can still keep my schedule on my iPad. Two apps that also save me time are Dropbox and Google sheets. With these documents I can upload homework assignments, create and send meeting agendas, and sign up to volunteer all while on the go. I rarely ever have to stop and use a desktop or laptop because I always have access to my documents.
Technology is certainly a big part of how many college students stay organized. One thing that has helped me tremendously is making sure all of my devices can communicate to one another. Apps like Evernote make this very easy. For example, if I am in a meeting, I can use Evernote to take notes on my phone or iPad. Simultaneously, my notes will be available on my laptop, making the transition seamless. This is particularly helpful as I update my calendar after meetings. It is also great to record contact information, save important details, balance schoolwork, etc. All of my devices are Apple products, which works for me as I can ensure that I have all of the information I need regarding class work, extracurricular activities and more no matter where I am or what device I have near me.
President, Student Government Association University of Arkansas at Fort Smith Hometown: Greenwood
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President, Black Student Association Arkansas State University Hometown: Little Rock
TALK BUSINESS & POLITICS | MARCH/APRIL 2016
President, Associated Student Government University of Arkansas Hometown: Jefferson City, Mo.
Sean Alexander
Hannah Aldridge
Alex F. Flemister
The various tactics I use to keep organized are a mix between old and new technologies. At the start of each semester, I enter the various commitments I have made – class, work and committee meetings – into my computer’s calendar application. Like many, this calendar forms the foundation of my schedule. From there, I add items to my calendar as needed, using Web-based applications like Doodle, Google Docs and Dropbox to share content between co-workers. However, unlike most of my friends, I do not use a planner. Instead, I keep a simple pocket notebook that is with me always. Every Sunday afternoon, I write all the items I have to accomplish during that upcoming week into my notebook. Then, before going to bed each night, I make a daily checklist to keep track of assignments and tasks that I must complete in the upcoming day. By keeping my notebook always on my person, I can accomplish my daily tasks within the constraints of my regular commitments.
Having to balance schoolwork, extracurricular activities and a job is a lot to keep track of for a 20-year-old college student. But I have found some of the best apps and programs for staying organized. A program that I rely on everyday is Google Calendar. It allows me to quickly add events on my iPhone, iPad or laptop. It has many helpful features, including the capability to send email notifications for events. A helpful app that prevents plagiarism in papers is called RefME. This app checks for possible plagiarism and helps to cite appropriately. Another app that I use on a regular basis is My Fitness Pal. This app allows me to track food I eat, exercise and weight, and it allows me to connect with my friends to help me stay motivated! One last app that I use is called Printer Pro. It allows me to print homework, emails and papers directly from my iPhone. There would be no way that I could stay as organized as I am without today’s technology.
In a world of constant communication and technology, organization is key. Between your smartphone, tablet, laptop, desktop and even smart watch, you have an abundance of avenues for information to be brought to your attention. Technological devices are a great resource, but in order for you to effectively use your devices and have a productive way of managing your schedule and documents, you must first filter how the information comes to you. Separate what goes where. Then, don’t forget where you put it! Have this process set up before you start to organize your online filing cabinet. Continuity between devices and applications are a great way to start organizing your schedule as well as important documents and emails. If you can open it on your computer, then you should try and set it up where you can open it on your smartphone or tablet. For me, some critical applications and software are Gmail, Google Drive, iCloud, Notes, Reminders, 1Password, Mint Bills, iCal, Blackboard and, last but not least, Siri. The three that allow me to have the most productive day possible are Google Drive/ Email, Mint Bills and iCal.
VP, Student Senate; Marshall Scholar Hendrix College Hometown: Little Rock
PR Director, Student Government Association Arkansas State University Hometown: Jonesboro
President, Sigma Alpha Epsilon Fraternity University of Arkansas Hometown: Little Rock
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Executive Q&A PHOTO COURTESY OF STEPHANIE MCCRATIC
Stephanie McCratic sees 2016 as a transformative year in public relations and marketing. “We’re at another one of those spots in history,” she says. “We’re changing the way it all happens.”
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Stephanie McCratic The Acorn founder explains the difference between social media marketing and influencer marketing. By Kerri Jackson Case
S
tephanie McCratic founded Acorn: An Influence Company in 2014. The Bentonville-based venture currently employs 12 people and works with more than 700 contractors through social media. The company works as a kind of match-making service between brands and people with marketing influence online. It’s the latest iteration of old-fashioned word of mouth marketing and public relations, but in the current highly quantifiable digital age. She spoke to Talk Business & Politics about her company, career advice and what inspires her. TB&P: Briefly describe Acorn. McCratic: We are in the influencer activation business. We identify, vet and recruit digital influencers (think Instagram, bloggers, SnapChat, YouTube, etc.) for advertising, PR and marketing campaigns. Sometimes this is 150 food bloggers making holiday party trays out of little sausages on Pinterest and Instagram, and sometimes it’s one elite beauty blogger creating a custom video for a retail .com product page. It all depends on the campaign goals. TB&P: Influencer marketing can sound like Internet voodoo to some people. How do you explain what you do and how you do it for the uninitiated? McCratic: Depending on the audience, I have two clear illustrations. Illustration A: This one is for those who are trying to understand the difference between social media marketing and influencer marketing. Social media marketing is
like a guy walking into ladies night at a bar, standing on the table and shouting “Hey everybody! I’m really really good looking, drive a nice car, have a great job, plus my mom is delightful.” Influencer marketing is like having an army of advocates in the bar who are charismatic and engaging, each
“I believe every bit of my journey has led me right where I’m supposed to be.” – Acorn founder
Stephanie McCratic telling a small group of people about their “amazing friend who just happens to be single.” Your brand is the eligible bachelor. Illustration B: It’s like staffing for word of mouth marketing. We find the people, quantify their influence using algorithms (so, basically voodoo), identify their interest and level of experience and then hire the
right people with the right audience for campaigns. From there, we manage them and our clients using our proprietary Acorn campaign execution process and deliver a tidy package of reports to our clients showing metrics (such as reach and organic engagements), benchmarks and stand out content. TB&P: There is a fairly well-documented gender gap in the tech industry. Why does it matter if women are represented in tech companies or learn to code? McCratic: The most important part of technology is UX/UI (user experience/user interface). There are so many amazing ideas, but if the end user doesn’t feel compelled to engage – it’s meaningless. Women bring a unique perspective to UX/UI because our buying behavior is very different from men’s. We love the hunt and the discovery. Men want to type in exactly what they already know they want. Also of note and not to be discounted, women spend 80% of the retail dollars in the U.S., so having our perspective at the table and in the code is wise for every company. There are also some incredible statistics around having women on boards. I’m kind of lonely in the startup/venture capital scene here in Arkansas. I’d love to encourage more women to found companies, seek funding or make their talents available for local boards. TB&P: Acorn is a fairly young company. What trends do you see for the next two to three years in tech, social media and influencer marketing? How do you plan to capitalize on those trends to grow your company? www.talkbusiness.net
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Executive Q&A: McCratic McCratic: I believe 2016 will be the year for Influencer Marketing. This niche will emerge as the new PR. Remember 2012? The year that Social Media Marketing really took hold? Just about that same time “digital” was upending “traditional” advertising. We’re at another one of those spots in history. We’re changing the way it all happens. Acorn has grown insanely fast, but we have stayed true to our core values. That dedication to the content creators and to client ROI will help us stay focused through this major growth period. Last year our revenue grew by 10 times the previous year, and this year we’re on track to grow by an additional five times last year. I’m so dang proud of the work my team is doing.
You are single with no kids, so travel more. The people you spend time with matter, so please quit hanging out with potheads. Let me also say, though, that I believe every bit of my journey has led me right where I’m supposed to be. Sheryl Sandberg has said that careers these days are more like jungle gyms than ladders, and I completely agree. It all matters. TB&P: Who inspires you? McCratic: Audrey Kinsman. She’s a partner at Kayne Anderson Capital Partners. That may not sound sexy, but she is whip smart and a lot of fun. She’s a woman in a man’s world and is Kayne’s top fundraiser. She reminds me that being a woman in this world is different, and that’s OK. We just have to work a little harder for what we want. Ann Bordelon, who just retired as CFO from Walmart at the age of 48. She’s become
TB&P: What advice would you give yourself 15 years ago in your career? McCratic: Think bigger. Break the rules.
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TALK BUSINESS & POLITICS | MARCH/APRIL 2016
a great friend and I admire her tough-asnails style. Oprah, because she said, “‘No’ is a complete sentence,” and because her Super Soul Sunday on OWN has a powerful impact on me every single week. Sounds cheesy, but it’s legit. My dad. He’s 87 years old and ran his own concrete business for decades. He is actually my grandfather, and he didn’t have to raise me, but he did. I watched him manage people, work hard, be a dedicated friend and sing (albeit off key) loudly in church every Sunday. He’s the salt of the earth. TB&P: What books are on your nightstand right now? McCratic: “Why Not Me” by Mindy Kaling. “Rich Bitch” (think Dave Ramsey, but without praise hands). “Big Little Lies” by Liane Moriarty (fiction washes my brain).
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“We are witnessing today too many of the same A collection of recent quotes challenges and apathy that existed almost 50 years by Arkansas newsmakers. ago. Even today there are those who would create policy to keep Arkansans from voting. The right to quality health care is still being used as a political football. … Food, clothing and shelter are still elusive dreams for far too many living in the We are committed to investing wealthiest and most powerful nation in the world.” – State Sen. Linda Pondexter Chesterfield in our associates and to in a Martin Luther King, Jr. Day message. continuing to simplify our business. When we do so, there is no limit to what our is never an easy decision, associates can accomplish.” but it is necessary to keep the company strong
“Closing stores and positioned for the future.”
– Judith McKenna, chief operating officer for Walmart U.S. on pay raises and expanded benefits for workers.
“I don’t think I would ask anyone for anything unless and until I could say that we’re spending every dime that we get wisely and effectively.” – Little Rock Interim School Superintendent Baker Kurrus
– Wal-Mart CEO Doug McMillon, on the retailer’s announcement in January that it would close 269 stores across the world, including 154 in the U.S., 11 of which are in Arkansas.
“
As governor, I am constantly looking for ways to share our incredible story with the rest of the world. This visit provides another chance for us to do just that – on the world's largest stage – while promoting our state's economic development opportunities, tourism and quality of life."
when asked if he expected a millage increase for the district.
“His view was really the old school with civility, collegiality … and those were more important to him in the practice of law than just about anything.” – U.S. District Judge Tim Brooks, on the passing of former Supreme Court Chief Justice Brad Jesson.
“The day’s coming when consumers, individuals and businesses will be able to go online to look at the quality and price of their health-care services. Five years ago, this transparency seemed impossible.
Now, it’s law.”
– CHI-St. Vincent CEO Chad Aduddell 66
TALK BUSINESS & POLITICS | MARCH/APRIL 2016
– Gov. Asa Hutchinson
on Wall Street in January ringing the opening bell of the New York Stock Exchange and meeting with several company leaders.
“Since 1995 we have occupied and then outgrown three different corporate headquarters in Little Rock. We expect continued growth for many years to come, and that implies continued growth in our workforce.”
– Bank of the Ozarks CEO George Gleason,
announcing a new corporate headquarters.
“It would be a colossal failure of common sense.” – Arkansas State Chamber of Commerce President Randy Zook,
if Arkansas were to end its Medicaid expansion funding.
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