TK Business Magazine Spring 2014 by E2 Communications & Publishing

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TK Business magazine

Winter 2013

From the publisher

Spring 2014 Contributors

Tara Dimick

I'll start tomorrow... That’s my little “diet joke” every day when I enjoy an unhealthy meal or indulge in a dessert (or two). Many of us use this same statement in our own businesses, company departments, or even our personal quality of work when we run out of time or energy to be strategic or innovative. We use it until we discover at some point we longer need that excuse. Not because we’ve actually started doing something, but because we’ve pushed off thinking about innovation and strategy for so long, it’s not even worth lying to ourselves to say, “I’ll start tomorrow…” But when we stop moving forward and land in that place of shortterm “comfort” we find the beginning of the end. Spring awakens our spirits. So NOW is the time to develop that strategy. NOW is the time to rejuvenate the innovation process within your company. Need some help? David Sollars, dean of the Washburn School of Business, offers his advice on strategic planning on page 54. You’ll also find innovation strategy advice on page 60t with Thomas Underwood and Doug VonFeldt. So… did you just say to yourself, “I’ll start tomorrow…?” STOP! Be inspired by the great work of the JA’s Business Hall of Fame Laureates: Jack McGivern, Mary Turkington, Lonnie Williams and the late Terry Bettis, on page 44. Stop the cycle of mediocrity. Make 2014 what you want it to be. Be a better employee, be a better boss, develop a new product or service, eliminate waste, improve efficiencies, and/or develop a strategic plan and follow it. Dedicate the time now or your business or job may not be there later to “…start tomorrow…”

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spring 2014

Tk Business magazine

Publisher

Tara Dimick

Editor-in-Chief Lisa Loewen

Designer David Vincent

Photographer Rachel Lock

Contributing Writers Melissa Brunner Michael Hooper Lisa Loewen Karen Ridder

Contributing Experts Creative Business Solutions Tim Kolling David Sollars Allan Towle Thomas Underwood Doug Von Feldt

Publishing Company E2 Communications PO Box 67272 Topeka, KS 66667 785.217.4836

2014 TK Business Magazine is published by E2 Communications, Inc. Reproduction or use of this publication in any manner without written permission of the publisher is prohibited. Every effort was made to ensure accuracy of the information in this publication as of press time. The publisher assumes no responsibility of any part for the content of any advertisement in this publication, including any errors and omissions therein. E2 Communications, Inc. makes no endorsement, representation or warranty regarding any goods or services advertised or listed in this publication. Listings and advertisements are provided by the subject company. E2 Communications, Inc. shall not be responsible or liable for any inaccuracy, omission or infringement of any third party's right therein, or for personal injury or any other damage or injury whatsoever. By placing an order for an advertisement, the advertiser agrees to indemnify the publisher against any claims relating to the advertisement.

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TK Business magazine

Spring 2014

Family ties are woven throughout Topeka’s business community. Many of these family businesses have been around for generations and, today, generations work side by side to create a solid foundation upon which the next generation may build. Building for the future is a common thread among the businesses profiled on the following pages. Greg DeBacker is proud to carry on the legacy of his father’s heating and cooling business, and Greg’s children are driven to do 10

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the same for him. Frank Sabatini loves to see his four sons working together on the board of directors for Capital City Bank, and they’re hopeful the family spirit will continue into the future. Patti Bossert’s employment services business is young by comparison, but her children are proud to work alongside their mother in the company she’s built from the ground up. Read on to see how these businesses are using the strength of family to build professional success. ►

Capital City Bank

Frank Sabatini with sons Dan, Matt, and Marc. Not pictured: Mike Sabatini

For all his family’s success in the decidedly grounded world of banking, Matt Sabatini grew up with his head in the clouds. The Chairman of the Board for Capital City Bank developed a fascination with flying while watching the comings and goings at Forbes Field from his childhood home. It led to flying lessons at the age of 14, a summer job at MidAmerica Aviation and, eventually, college at Embry Riddle Aeronautical School in Arizona. Still, he says, landing at the family business with his father, Frank, 28 years ago isn't the drastic deviation in flight plan that one might think. In flying as in finances, he says, "you have to focus and be precise in following the rules, but also adjust. If a storm's coming, you have to divert."

Dreams of A Father

Frank Sabatini, University of Kansas School of Law graduate, went into the pizza business with Wint Winter, a former KU football teammate. Frank says he and Winter often traveled together and talked pizza, but, when Winter purchased the bank in Ottawa, the talk turned to finances. As such, Frank says he told his friend, "if banking was all he was going to talk about, then I was going to have to buy a bank so I had something to talk about, too."

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Tk Business magazine

Enter Georgia Neese Gray, whose family owned Capital City Bank. Frank came to know her, both through personal financial dealings and doing some of her legal work. Neese Gray mentioned selling the bank as early as 1972, Franks says. However, she already made a commitment to another buyer. Frank honed his knowledge of the industry, even serving on the board for Fidelity Bank. When Capital City came up for sale again in 1979, Frank made a successful bid. "I had always wanted a business of my own that I could pass on to my family," he said.

A Family Affair

Among Frank’s first moves was putting all four of his sons on the bank’s board of directors. “This would allow them to continue their own careers yet still be a part of the bank organization,” Frank said. Matt says convincing him to come on board in a more hands-on, daily capacity was simple economics—unable to find a position as a pilot for a freight carrier and with a child on the way, he needed a job. The entrepreneurial aspect of a small business and the chance to help his parents tipped the scales. He started brokering the sale of office space in the structure his father was building next to the bank building. From there, he moved through the bank’s various departments, starting as a

"I had always wanted a business of my own that I could pass on to my family." - Frank Sabatini, chairman emeritus teller and moving on through collections and lending. “That’s the way you do it – you learn everything,” Matt said. “You can’t just throw someone in.” Along the way, Matt says, consulting with his brothers Marc, Mike and Dan as board members has been an added bonus. He says all have different personalities, but, when it comes to the business, all share the same vision. “It’s just a great environment,” Matt said. “It’s kind of like having a Christmas holiday all the time.”

Community First

Frank also places a high priority on serving the community. In fact, he says, it has been a guiding principle of his business. “I had a philosophy that, to make a loan, I had to be able to drive to the collateral in an hour and that was my circle of people I would loan money to,” he said. Matt says it is a philosophy that extends beyond business decisions. “Giving back is huge,” he said. “That’s been a lot of the success of this bank. It goes back to Georgia Neese Gray and my father. Banking 101 is to spur and drive the community you’re in.”

George Mayfield

Flying Toward The Future

&“Light in the Other Room” Artists March 7 – April 25, 2014

Today, Frank serves as Capital City Bank’s Chairman Emeritus while Matt is Chairman of the Board. From two locations and 17 associates in 1979 to 10 locations with 110 associates now, Frank believes he has built a foundation that will allow his family to soar. He says he emulated his uncle, who owned a construction company in Chicago. “I learned how he would get a job but then he would turn it over to my dad and his children to get a job done. That develops a strong organization and that is the technique I used to grow the bank,” Frank said. “You get to see family members becoming successful and see the strength they have developed through the years.” As for who will develop their strengths in banking next, Matt says there is plenty of time. He and his brothers have nine children between them, ranging from elementary school to college age. “It would be nice to carry on the tradition,” Matt said. “We would welcome their involvement but understand that they must decide the career path that is best for them.” ►

John Coltrane

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George Mayfield

3074 SW 29th Street • Topeka, Kansas • 785.273.5994 Gallery Hours: M-F, 10-6; Sat, 10-4

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Spring 2014

DeBacker's Inc.

Dan, Flora, Greg, & Kelsey Debacker

Greg DeBacker jokes he went to work the day after he was born. He says that's just the way it works when mom and dad are both involved in running a family business. "If you're born, they will find stuff for you to do!" he said.

History

Greg says his father, John "Jack" DeBacker, started in the heating business while in high school. Jack needed a part-time job, so he would help his uncle working on the old coal furnaces. In 1949, Jack founded DeBacker's, Inc. Today, the company does heating and cooling work for both new construction and replacement systems. Greg's corporate training ground was at home, where his mother, Flora, handled much of the bookwork. "We would help–staple this, file that—basic book work," Greg said. He would go on to enter the company full time out of high school, starting in new construction, then working into the service and repair aspects. It was a route that serves him well today. "I'm fairly well-rounded in all aspects of the company," he said.

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Tk Business magazine

Tradition

Greg says that, on the one hand, he felt it was expected he would join the family business but, on the other, he wouldn't have stayed if he didn't enjoy it. "We have good people down here. That's why I continue the tradition," he said. He also says he cherishes the time spent working with his father, who passed away in 2012. Two of Greg's own four children work with him now and he hopes they feel the same way. "It's enjoyable to work with them," Greg said, then adds, "Sometimes they might not think it's enjoyable to work around me!”

The Next Generation

Greg's daughter, Kelsey, insists that's not the case. "My father and I have always been close, so working beside him every day feels normal to me," she said. Kelsey helped out around the office during the summer while in high school then worked in the child care field before returning to the company full time three years ago as an office assistant. Her brother Dan also works for the company as an installation technician. They are joined by Kelsey's fiancé, who is

"Dad put in a lot of time . It was his baby. It was his life ." - Greg debacker, owner a service technician and, while they do not have a daily role with the company, Greg's other two sons, Chris and A.J., serve on the board of directors. Greg says his mother Flora continues to keep an eye on things from afar. Kelsey says the company holds many memories for all of them. "I have known all the workers here since I was a little girl. I have memories of painting my fingernails with the secretary here at the time and making artwork for the employees," she said. "It was always an adventure coming down to the shop." Dan agrees, sharing his own sweet memory. “I remember our grandpa always letting us into his secret candy stash!” he said.

Leaving a Legacy

Greg says he tries not to put any pressure on his children, but from experience, knows it is probably there. "You feel like you have to prove yourself more. I felt that way," he said. As the bridge between the first generation and the next, he understands. "Dad put in a lot of time. It was his baby. It was his life," Greg said. And now he hopes to carry on that legacy by leaving the company in a good situation for Kelsey and Dan. "I'd like to turn it over to them and say, 'Have at it!'" Greg said. Dan says that pressure, real or perceived, is the only downside he has seen in working for the family business. “The only concerns I have are trying to live up to the name and expectations that go with it,” he said. Dan says being younger allows him to bring a fresh perspective on the marketplace and a better understanding of new technology to the table. He’d like to expand the business someday—a goal his sister shares. Kelsey says her father continues to do an excellent job, but she admits she feels a certain responsibility as the youngest of the upcoming generation. "I know how important this business was to my grandpa and how important it is to my father," Kelsey said. "With that in mind, I will do whatever I can to help our family business. I'm constantly thinking of the future so I try and learn as much as I can." ►

Julie C. Swift, DDS, MS Offering a full range of periodontal services, including maintenance, surgical, esthetic and implant procedures. www.topekaperio.com

TK Business magazine

Spring 2014

key staffing & Premier Employment Solutions

Paul Bossert, Patti Bossert and Jamie Stafford

Not long after Patti Bossert launched Key Staffing, she brought her three young children to the office and had to smile when she discovered them on the phone making "calls" to employees, telling them they needed to get to work. "We grew up playing in the supply room," said Patti's son, Paul Bossert. It was perhaps a glimpse at the future for Paul and his sister, Jamie Stafford, who now work for their mother. But, they say, it was far from a future that was preordained.

Infancy

Patti Bossert founded the first arm of her business, Key Staffing, in 1989. She had experience in the employment industry and wanted to explore her "entrepreneurial drive" to venture out on her own. "The goal was to provide myself an income that I could control," she said. "I could control my success or failure and be rewarded in a positive way for hard work." Key Staffing is an employment service for clerical and light industrial temporary workers. She followed her success in this area by founding Premier Employment Solutions in 1998. Premier provides executive recruiting and consulting services in fields such as marketing, accounting and information technology. Patti credits participating in programs such as 4-H in her youth with shaping her desire to compete and be successful. She fostered the same ideals in her children, encouraging their participation in such organizations as well. It also instilled in her a sense of community, which is why she encourages her employees to participate in programs such as Meals on Wheels,

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Tk Business magazine

Rotary, Junior Leader Readers and more. "I feel like I always get back more than I give, so it's easy to give," Patti said. When the time came for Paul to choose his career path, his first step was to hit the road.

Growing Up

Paul Bossert was working as a graphic designer at Neiman Marcus in Dallas when he was approached with a unique opportunity. Would he be willing to start over in a new city at a family-owned company with potential for advancement to the highest level of management? He reviewed his current situation, where endless competition for the same few positions made moving up the ladder a slow prospect, not necessarily guaranteed. He visited the company for two weeks on a trial basis before he took the leap - landing back in Topeka, working for his mom. Paul admits that part of what tipped the scales was a desire to see what his mother had built. "I felt like it was important to keep it a family business and I wanted to be a part of helping it grow," he said. That doesn't mean he started out at the top, however. "He had to start at the bottom and prove his worth," Patti said. "You have to do that in a family business so people don't resent the family member." "We didn't jump levels," Paul agrees. "I moved up as others have left. I had to prove to people who had been here a while that I could do it the same or better." Jamie, too, explored other options before joining the family business. While she did temp work for the agency during

"The goal was to provide myself an income that I could control ." - patti bossert, owner

"It's easier for me to just do things myself because I know how to do it, but I need to sit back and say, 'Paul can do that,'" she said. "As a parent, you feel like you want to protect your kids and do things for them. It's hard to let them fail when you see what they're doing isn't going to work out. Sometimes, you have to let them learn on their own."

Family Ties school breaks in college, she chose to manage a restaurant after graduation. She came to Premier for good when the company needed a receptionist. "I just kind of stuck (after that)," she said. "There is continual growth opportunity. It's always something new and challenging."

Don't Be Mom

For Patti, one of the biggest concerns in having her children join the company is making sure they want to be there. Especially when Paul was successfully established in a large company, she "didn't want him to make a career change he'd regret later." She also strives to treat them just as she would any other employee. All three admit the challenge is actually whether mom is tougher on her kids rather than letting them slide. "We're held to a higher standard than other employees," Jamie explains. "She knows how we were raised so she expects more (from us)." Part of that may come from having an eye to the future. Patti knows Paul and Jamie will take over one day and she wants to ensure she gives them the tools to do so successfully. To that end, she says she finds herself having to consciously scale back her involvement in their work.

At the same time, knowing each other so well offers some distinct advantages. "They brought a strong sense of responsibility and loyalty and ethics," Pattie says of Paul and Jamie. "Those are traits harder to measure in someone who's not a family member. We all have the same gut instinct, and that's the most important thing in business." Does she have to deal with any sibling rivalry? Patti says no. She says each child has different strengths which means they are not competing for the same roles in the company. "She's good at recognizing what I am interested in," Jamie said. "She's good at finding things that fit my niche." Of course, working together means it can be tough to turn off the business talk at family gatherings. "You don't leave problems at work because you need to get them solved," Paul said. It's different, though, because you want to be part of the solution for your family. Jamie points to a recent crisis when water pipes burst in a neighboring space, flooding their offices. "It's not just the boss calling me in at two in the morning. It's 'mom needs help,'" Jamie said. "You have a different attitude." Patti agrees. In life and in business, she says, "During times of adversity, family stands out." TK

TK Business magazine

Spring 2014

rules for Mixing Business with Family

by melissa brunner It's been said that people should avoid mixing professional life with personal life. Clearly, this is not a hard and fast rule for many businesses.   Studies have shown approximately 35 percent of Fortune 500 companies are family-controlled. In addition, a Bloomberg Business Week report found family businesses account for half of the U.S. gross domestic product, generate 60 percent of the country's employment, and account for more than threequarters of all new job creation. While family ties can bind business success, business consultant Lori Keegan says the old adage about mixing the two should serve as a warning of potentially treacherous waters ahead. Keegan's company, Transition by Design, specializes in resolving situational and relationship dilemmas impacting productivity, profitability or overall well-being of organizations.   "An ounce of prevention costs far less than a pound of cure," Keegan said. "These family business decisions—even "small" ones—can have tremendous ramifications."  Deciding to go into business with family members brings unique considerations. Despite that, Keegan says, when entered into with eyes open, it also brings intangibles that can put you ahead of the game. The biggest invisible dynamic that families miss is that relationships MUST change to succeed.   "Relationships with high emotional intelligence and good business sense will save the day for you most every day," she said. To that end, she offers these "5 Rules for Mixing Business with Family."

Separate family decisions from business decisions.

1. 2.

This is especially important in the early stages of the endeavor to assess if what you have in mind could work and HOW it could work if it's a justifiable idea.

Make sure family members are qualified for their professional roles.

Is their help really needed in that official and/or legal role? And is this person really qualified for the job? If not, is the business prepared to train unqualified candidates? The practices adopted should apply to family and non-family members alike, or you risk breeding resentment from other employees.

Clearly define if family members are ownership partners and/or participating employees.

If not implemented correctly or with the correct people, the situation could get messy and harm not only the business, but the family as well.

Lori Keegan Owner of transitions by design

Consider the invisible people in the room.

Continue to ask the tough questions.

Doing business with family inevitably will mean dealing with spouses, in-laws and children, and some of them might be obstacles to achieving your objectives. In laying the ground rules, consider precedents set for family members you absolutely need to say "NO!" to as employees, but in a fair, reasonable manner.

Continuing to ask the RIGHT (tough) questions will guide you to the wisest course of action and/or modifications. Do not prematurely seek answers until you have sought the right questions. The appropriately matched answers will come shortly thereafter. Remember to seek guidance outside the family circle. A business strategist and business attorney should both be key weapons in your dilemma resolution arsenal. TK

TK Business magazine

Spring 2014

It’s a new day... Every day. It’s a new opportunity. That’s the way we look at it.

It’s a new day means we’re here for you, doing what we do best. And we’re proud of that. Serving you is our tradition. And our future. More innovation. More dedication to our community. Everything we do, every day, is to make sure you have what you need, when you need it.

I t ’s a new day. E ver y day.

TK Business magazine

Spring 2014

“[Michael Kiley has] built a foundation for the future of the company that is rock solid.” - Cody Foster, co-founder of Advisors Excel

Clockwise: Jackie Fox, Security Benefit Vice President and Chief Administrative Officer Michael Kiley, Security Benefit Chief Executive Officer Doug Wolff, President of Security Benefit Life InsuranceCompany

Guggenheim Partners-led investor group purchased Security Benefit in 2010. New leadership, including Chief Executive Officer Michael Kiley, re-engineered the company to focus on product innovation and developing new distribution channels. Kiley partnered with independent marketing organizations such as Advisors Excel in Topeka to distribute fixed index annuities. “He’s built a foundation for the future of the company that is rock solid,” said Cody Foster, co-founder of Advisors Excel in Topeka. “They were at death’s door. Now they have a very bright future.” Security Benefit has been through many ups and downs since it was founded in 1892, but probably none more trying than the financial crisis of 2008-09. Hard Times Former CEO Kris Robbins sought to diversify the company with the purchase of mutual fund company Rydex Funds in 2007. Security Benefit took out a $700 million loan from its General Account to buy Rydex during the top of the stock market and arguably paid too much for the company. Interest on the note was to be paid by income from Rydex, but income dropped dramatically when the stock market crashed in 200809. To make matters worse, Security Benefit’s General Account held collateralized debt obligations that lost significant value. Security Benefit cut staff to reduce expenses, but needed more capital; however the credit markets had dried up. Ratings agencies downgraded Security Benefit’s financial strength and sales slowed. Guggenheim was brought in as an advisor to help with the General Account.

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Tk Business magazine

Guggenheim viewed Security Benefit as a good business with great potential. Guggenheim worked with management and the Kansas Insurance Department in late 2009, which led to capital infusions starting in early 2010. A Guggenheimled investor group bought Security Benefit in summer 2010 for $400 million. Security Benefit paid off the loan for the Rydex acquisition with the help of capital from the Guggenheim investor group. Broadening the Market Kiley said Security Benefit was an early entrant into the retirement business in the 1960s, but was narrowly focused on serving public employees and teachers. He looked for ways to broaden the business by focusing on retirement products for Baby Boomers. He said Baby Boomers saw their retirement funds take a hit in the stock market crash of 2000-01 and again in 2008-09. Security Benefit created several fixed index annuities that provide steady income for life and possible upside if the stock market is positive. Now Security Benefit has two of the top selling annuity products in this space nationwide. “The intersection of demographics, investor experience and low interest rates have combined to make these products as appropriate as anything in the financial landscape today,” Kiley said. Doug Kinsinger, president and CEO of the Greater Topeka Chamber of Commerce, said, “Security Benefit and its

executive leadership have not only been a star in our community for creating so many new jobs, they have also garnered the attention of the financial services industry across our nation. They strategically developed new products that were innovative in their industry and then set up significant new channels for distribution and sales. Their growth in sales and employment in our community has been phenomenal!” A Key Partnership Kiley said he was impressed with Advisors Excel’s business model and its three founders. “They are the most creative and naturally talented marketers I’ve ever known,” Kiley said. Advisors Excel and Security Benefit worked together to launch a proprietary product called Secure Income Annuity. Security Benefit’s subsidiary se2 would handle administration. Foster, who was involved in the pitch to Kiley, said this was a revolutionary idea. “He immediately got it,” Foster recalled. “Mike said, ‘this makes perfect sense.’” When they launched Secure Income Annuity, Advisors Excel had hoped to sell $150 million through its 700-advisor network in 12 months. In the first nine months they sold $1 billion – at record speed. Since then a total of about $4.5 billion has been sold. Security Benefit followed that success with the introduction of the Total Value Annuity, partnering with Advisors Excel and three other independent marketing organizations. The Total Value Annuity has been the No. 1 selling annuity for most of the past two years. Security Benefit’s relationship with Advisors Excel has been great for both companies. Advisors Excel has grown to 230 employees and is one of the fastest growing IMOs in the country. Advisors Excel moved last summer into the former Marling’s Furniture building to accommodate growth. “They made a bet on us at the same time Guggeheim was making a bet on Security Benefit,” Kiley said. Kiley said the Guggeheim-led investors that purchased Security Benefit are “savvy long-term investors with a value orientation. They were the ones who put up the capital to right this ship.” “In fact the first day we began putting capital in, a significant investment bank called and said they wanted to buy se2 from us at a pretty good price,” Kiley said. “We had the wisdom to say no. Since then other companies have called to buy it from us. We view it as a real market leader for process outsourcing, and their growth over the last three years is a testament to that.” ► TK Business magazine

Spring 2014

Dave Keith, se2 Chief Executive Officer Cody Foster, Advisors Excel Co-Founder

Outsourcing Giant: se² Security Benefit launched se2 in the early 2000s. David Keith has been se2 CEO since 2006. se2 has about 480 employees, most located in the main Security Benefit building in Topeka. The company’s clients include about 35 insurance companies, including Security Benefit Life. When an insurer brings out a new product, the insurer hires se2 to handle administration of the product. This way, the insurance company can cut costs up to 30 to 40 percent. Cost savings allows insurance companies to achieve greater returns. se2 management recently moved into the former Advisors Excel building at 1300 S.W. Arrowhead. Fifty employees are located there, but se2 expects that number to grow to 150 by year-end. Kiley said the retirement business is ratings sensitive. Ratings agencies are battling to get their credibility back because they had rated many mortgage back securities as A credit during the housing run-up, but later issued downgrades after discovering they were really subprime. Ratings agencies are slow to give upgrades, but ratings agencies have issued multiple upgrades to Security Benefit in recent years, due in part to assets doubling in three years to $26.4 billion at year-end 2013. Capital and surplus stand at an all-time record of nearly $1 billion. Security Benefit Life’s credit ratings were upgraded to bbb from bb+ in August 2013 by A.M. Best Co. Standard & Poors upgraded Security Benefit to A-. “I think Guggenheim and our investment team in our General Account get us better returns than the average insurance company,” Kiley said. “I know we have built highly differentiated products. We also built a new distribution model that is leaner and lower cost, less manpower intensive. I know by having se2 doing my administration, I am 30 to 40 percent lower cost administration.” Jackie Fox, Security Benefit vice president and chief administrative officer, said she expects 2014 to be another good year for Security Benefit. “We’re expecting continued success across all of our distribution channels,” Fox said. TK Michael Hooper is a freelance writer based in Topeka, KS. He can be reached at hoopervisor2@yahoo.com

Winter 2013

Tk Business magazine

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TK Business magazine

Spring 2014

Topeka has heard talk about improving downtown for the past several decades. We have commissioned studies, held meetings, hired consultants and engaged in spirited debate. Plans and proposals have cropped up periodically, but nothing ever materialized. Those plans were filed away and forgotten. Now once again, we hear about a new plan to revitalize downtown Topeka. So what makes this time any different? The most significant difference is the influx of private capital into the equation. While the city has agreed to pick up the $5.8 million price tag for infrastructure improvements to S. Kansas Avenue between 6th and 10th Street, nongovernmental organizations have pledged more than $2.1 million to enhance the esthetic appearance above ground.

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Tk Business magazine

Vince Frye, president and chief executive director of Downtown Topeka Inc., said the combination of public and private funding makes perfect sense. “The infrastructure must be replaced anyway,” Frye said. “Why not take advantage of those repairs and make it look pretty as well.” According to Doug Whitacre, Public Works Director, Kansas Avenue is in dire need of repairs. From a streetscape standpoint it hasn’t been updated since the 1980s and the utilities under the street haven’t been updated for more than 100 years. “This project will bring positive benefits in the form of economic development, public-private partnership and making our downtown an inviting destination spot for pedestrians,” Whitacre said.

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Spring 2014

Winter 2013

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TK Business magazine

Winter 2013

Hills Pocket Park The water, sewer, gas and electric utilities below ground in the four-block area of S. Kansas Avenue will be replaced and conduit for high-speed fiber will be installed. Above ground, new lighting will illuminate the new threelane street with 11-foot sidewalks on each side. Private funds will pay for decorative arches across the street and a series of eight pocket parks to visually enhance the pedestrian areas and provide pavilions where people can relax. Bartlett & West is funding one of those pocket parks even though their offices are not located downtown. Keith Warta, president, says the company wants to be part of transforming downtown because it is the heart of Topeka and our community needs a vibrant downtown to be healthy. “As an area employer, it is a mission-critical challenge to get the right resources on board,” Warta said. “Research shows that a dynamic downtown can be the swing factor when talented, in-demand people consider their futures.”

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Tk Business magazine

Warta says they want their pocket park to be memorable. They want to create a unique experience, with distinctive art, which is integrated into lighting technology in a hands-on interactive way that represents Kansas. “Our park will incorporate a lighting sequence that will mimic the changing colors of a Kansas sunset and will have varying topography and native grasses consistent with the Kansas Flint Hills,” Warta said.

Future Expectations Frye says the excitement about the downtown revitalization is already reaping rewards. “Within the last year, nine buildings have been purchased on Kansas Avenue by people who see investment potential,” Frye said. “Some of these buildings have not been used in years.”

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Spring 2014

I want to get a loan for my business. What do banks consider when making a decision? Scan the QR code to watch INTRUST commercial banker Scott Griffith answer this question.

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Spring 2014

TK Business magazine

Spring 2014

“In construction you learn to act on opportunities as they come. You can’t just make the market, you simply respond to the market,” - Mike McGivern, Senne Company President

George Senne built his business in the right place at the right time. The construction company he founded in 1914 flourished through building booms and survived during busts. It had a hand in some of the most memorable places in Topeka and the surrounding area. As Senne Company celebrates 100 years, it continues to work on cutting-edge projects that help define the community. Senne began his career as a carpenter doing residential work around town including houses in the Potwin area. During World War I, he was called to build much of Camp Funston, a U.S. army training camp at Fort Riley. He expanded into commercial work after the war, helping develop the face of Kansas Avenue and building the Christ’s Hospital, which the current Stormont-Vail HealthCare has been expanded around.

Senne Company President Mike McGivern says George survived the early years of the company because he adjusted to the times. Senne was even able to keep the company open and all workers employed during the depression because he owned and leased some buildings. That flexibility has served the company well. “In construction you learn to act on opportunities as they come. You can’t just make the market, you simply respond to the market,” McGivern said. During World War II, Senne’s experience and resources earned him a government project to build a POW camp in Arkansas. That project was the equivalent of a $40-million deal in today’s dollars. It required more than 1,000 carpenters, the construction of an on-site sawmill, and a tent city that could feed and house the workers—all of which had to be completed in three months. “It was an enormous project given the timeframe and the circumstances,” McGivern said. McGivern says the kind of dedication and reliability that Senne put into projects a century ago is the same type of service that keeps the company in business today. They view each job as a means to earn the

Front Row L-R: Debby Witthar, Mike McGivern, Kim Kirk, Mike Maas Middle Row L-R: Anita Brooks, Cindy Hill, Paul Moseley Back Row L-R: Randy Haas, Mike Sullivant, Judy Row, Ray Wall

next job, so little jobs are just as important to their bottom line as the big ones. “We try to treat the customers like we would like to be treated ourselves,” McGivern said. “I think the companies that do that generally make it through hard times and carry through a long time.” The Senne Company specializes in three areas: general contractors, industrial millwright contractors, and commercial interior contractors. While most of their customers are local, they have worked on projects all over the world. A recent project has been the multiphase redesign and relocation of the Helping Hands Humane Society. It is work that McGivern says puts Topeka on the cutting edge of care for modern animal shelters. The company has also continued with government contracts, including recent rehabilitation work on two hangers at Forbes Field and a major remodel on the headquarters for the 190th Air Refueling Wing of the Kansas Air National Guard. Owned by McGivern and three other members of his family, the Senne Company has been family owned for three-generations. ►

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TK Business magazine

Spring 2014

“We are always looking for different ways to provide services instead of continuing to provide it the same old way that we’ve always done it.” - Deb McGlohon, Berberich Trahan & Co. COO

Flexibility has been the name of the game for more than 100 years at Berberich Trahan & Co. After spending the last year celebrating a century of service, the company is forging a path for the future with innovation and attitude. The accounting firm began in 1913 as a branch of Washington, Henry & Co. Federal Tax Consultants and Public Accountants in direct response to the development of the Internal Revenue Code. Through the past 10 decades, the firm has changed names or affiliations more than a dozen times, but has been Berberich Trahan & Co. since 1989. The firm primarily focuses on audit work but also does consulting as well as tax and accounting solutions.

Accounting may not seem exciting, but at Berberich Trahan & Co. they do their best not to be the stereotypical “boring” accountants. “We love accounting. We love doing what we’re doing,” Tax Director Alisa Snavely said. “The bottom line is that we try to be unique and have fun, and not be the stodgy old bean counter.” The company encourages all employees to tackle each day with a positive and energetic attitude and find new and creative ways to serve clients. “We are always looking for different ways to provide services instead of continuing to provide it the same old way that we’ve always done it,” Deb McGlohon, chief operating officer, said. The company’s willingness to adapt has allowed it to survive the changing times. As it begins its next hundred years, the firm expects flexibility will be key to thriving in the future. With tax issues becoming more global, business has also become more complicated for the company’s clients. Karen Linn, managing director, says

Photo includes: Jan Glidewell, Tammy Schrenk, Mark Bernal, Chana Nord, Sarah Guesby, StaceyHammond, Brad Koehn, Sherry Baker, Karen Linn, Alisa Snavely, Cynthia Darting, Gary Knoll, Deb McGlohon, Ann Fletcher, Stephanie West, Rebecca Shaw, Hannah Peterson, Dusty Wagoner, and Brett Yingling

Winter 2013

Tk Business magazine

staying on top of the new standard and constantly looking at new ways to provide added-value to clients is a top priority. “It’s clear that there are a lot of things dramatically changing in the accounting industry and the world,” she said. In 2013, Berberich Trahan & Co.’s 35 employees celebrated the century mark with a year of giving back to the community. They donated time, money or supplies to a different charity each month of the year. In addition to continuing some longheld traditions, such as volunteering at the TARC Winter Wonderland and serving as cashiers at the annual Topeka Shawnee County Library Used Book Sale, they also added several other charities, where they found themselves gathering a wide variety of items from back-packs and baby wipes to pet toys and Christmas presents. “There was a lot of enthusiasm for it,” Linn said. It is that kind of enthusiasm that Berberich Trahan & Co employees believe will keep their company strong in the future. TK

TK Business magazine

Spring 2014

topeka business

Hall of fame by lisa Loewen

This year's Junior Achievement Business Hall of Fame Laureates join an elite group of the most accomplished Topeka business leaders of all time. They represent a variety of industries, and each is uniquely distinguished, but they also have much in common. Each one of the these individuals has improved Topeka's business landscape. Each one has been a leader, a community advocate and a source of inspiration. â&#x2013;ş

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Help today’s students become tomorrow’s success stories. Volunteer with Junior Achievement of Kansas today! For details, visit www.kansasja.org , email alice@kansasja.org or call 785.235.3700. TK Business magazine

Spring 2014

mary

Turkington

First Lady of Trucking

Mary Turkington doesn’t look like a trucker. She doesn’t talk like one either. But she proudly holds the title of “first lady of trucking”—a title she earned through her more than five decades of service to the Kansas Motor Carriers Association (KMCA). As a member of the first class to graduate from the William Allen White School of Journalism, Turkington planned to be a journalist. Three days after completing her degree at the University of Kansas, Turkington began her career with KMCA as editor of the association’s newly published trade magazine, The Kansas Transporter. Responsible for both content and advertising sales throughout the state, Turkington found herself on the road two weeks out of a month. Within six months, the association had to reduce her commission rate because she was earning more than the manager. “I think I surprised them,” Mary recalled. “I didn’t surprise myself though. I knew I had it in me.”

Member of the Third House

She remembers those early days fondly because that time on the road taught her not only about the trucking industry, but

spring 2014

Tk Business magazine

also more about the state of Kansas. That knowledge served her well when the association sent her to represent their policies before the Kansas Legislature in 1951. She spent the next 45 years lobbying to improve the lives of KMCA truckers and their families, researching bills and working closely with elected representatives. “Some of the finest men and women in the state served in the Kansas Legislature,” Turkington said.

Breaking the Glass Ceiling

When Turkington was named Managing Director of KMCA in 1968, she was only one of two women in the country to hold such a state position. She humbly attributes her success as a woman in a man’s world to her upbringing. One of four children (the only girl) growing up on a farm, she knew the value of hard work by both men and women. “My mom worked as hard as my dad did,” Turkington said. “They were equal partners in everything.” She took that lesson into her own career. “I found truckers to be a lot like my mom and dad,” she said. “The mom answered the phone and kept the books; the dad drove the truck. It took both to make a successful business.”

Still Trucking

After her retirement from KMCA in 1997, Gov. Bill Graves appointed Turkington to the Kansas Turnpike Authority, where she served 16 years. She served as Chair for 12 of those years. “That was a pure pleasurable 16 years,” Turkington beamed. “It was an agency on which you could serve with confidence.” In addition to her years of service with KMCA, Turkington was active in numerous organizations: • National Chair of the American Trucking Association’s Highway Policy Committee • Chair of Transportation 2000 Committee • Chair of the Greater Topeka Chamber of Commerce • Chair of Kids Voting Kansas • President of the State Chapter of the American Society of Association Executives • President of the Public Relations Society of America State Chapter • President of the Topeka Capitals Baseball Club • Board Member of Kansas Historical Foundation

Award-winning Performance

Turkington’s service to Kansas has not gone unnoticed:

• In October of 1996, Turkington was awarded the S. Earl Dove Award, the American Trucking Association’s most distinguished honor.

• Jan. 17, 1997 was declared Mary E. Turkington Day in Topeka, Kan.

• In 2011, Turkington was awarded an honorary membership in the International Bridge Tunnel & Turnpike organization. An honor usually reserved for past presidents of that organization. ►

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TK Business magazine

Spring 2014

lonnie WILLIAMS

People say the key to success in business is to be passionate about what you do for a living. While Lonnie Williams is successful, he isn’t passionate about trash. But he is passionate about people. Lonnie Williams, along with his family, owns L&J Building Maintenance Services, LLC, a Topeka-based company that provides building maintenance, mechanical construction and sanitation services across five states. His people skills and ability to manage others, however, are a result of a 30-year career with the State of Kansas Juvenile Justice System, mentoring troubled youth.

Business on a Whim

Williams’ building maintenance business actually began on a whim. Williams was talking with a friend over a pizza and a beer in 1986, when his friend mentioned he needed someone to clean his office building. Williams replied, “I can do that.” The next day he and

spring 2014

Tk Business magazine

his brother showed up to clean the building, and the rest was history. Lonnie kept his job at the state for the next two years and worked part time cleaning the office building. With the help of his wife, Jill, who has a PhD in Social Welfare, he slowly began to add more cleaning jobs to his schedule.

“Playing” in Business

Williams kept working the two jobs until one day a business owner he respected gently accused him of just “playing” in business. So when a friend asked for his help on a federal maintenance contract in Omaha, Neb., Williams decided to stop “playing” and jump into the business with everything he had. He quit his job with the State and spent the next six months in Omaha helping turn the operation around. “It was during one of the largest snowstorms on record,” Williams recalled. “I stood at the window and watched as one snowplow would

push the snow one direction and another snowplow would push it right back where it started. It was like watching the Keystone Cops. I went down and fired them on the spot.” That job led to six more months in Wichita, where he helped save another federal maintenance contract on the U.S. Courthouse. At that point, Williams’ reputation for running a tight ship caught the attention of the U.S. General Service Administration. They asked him to bid on the federal contract to maintain the Charles Evans Whitaker U.S. Courthouse in Kansas City, Mo.

A Family Business

With 44 employees providing services across five states, almost all of L&J’s business is on federal contract. The company provides janitorial and building maintenance services to numerous U.S. Federal Courthouses in Kansas, Nebraska and Missouri. In 2004, a joint venture created L & J Building Co., which provides mechanical construction services to Veteran Administration Medical Centers within the region. In 2008, the company expanded into sanitation services at three United States Army Military Bases, including Fort Bragg in North Carolina. Williams mentors other small business owners and is involved in numerous joint ventures. “I am always looking for investment opportunities in undervalued businesses,” he said. “I will probably be stay in business until they throw the dirt in my face." ►

TK Business magazine

Spring 2014

jack

Mcgivern

Walk into the office of Jack McGivern, and you see walls that are covered in beautiful pieces of art. Porcelain clowns greet you from various nooks and crannies, and a remarkably life-like statue of an old woman is sitting in the “parlor.” Looking around you get the impression that McGivern loves color—more specifically paint.

Preparing the Canvas

McGivern grew up in the painting business, working for his father who started JF McGivern, Inc. in 1947. He remembers helping his father mix paint in their home driveway on the weekends so that the crew would have the paint they needed to get to work on Monday. “We mixed the lead, turpentine and linseed oil, and then strained it through women’s nylons,” he said. McGivern and his sister took over the business in 1960. She

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Tk Business magazine

managed the office; he managed the paint crews, and together they turned that small company into a big success. “If I deserve this honor, so does my sister,” McGivern said.

Laying Down the Foundation

McGivern took over a company in a highly competitive industry. Improved materials and advanced technology allowed amateur painters to enter the marketplace. “We were competing with professional painters, college students and even every home owner,” he said. “Anyone with a paint brush was potential competition.” In spite of that competition, JF McGivern soon gained a reputation as the commercial painting company of choice in Topeka. The company invested significant capital in equipment, such as under bridge trucks, high reach trucks, man lifts and large sand blasting pots. They also believed in outworking the competition.

“We started on time, did good quality work and didn’t quit before the bell rang,” McGivern said. “We didn’t make promises we couldn’t keep. We either did the work right or we didn’t do it.”

Using Broad Strokes

Doing the work right kept repeat customers coming back and brought new customers in the door. A stellar reputation combined with commercial equipment that could handle enormous projects soon had McGivern bidding jobs all over the country. Jumping on the company airplane to manage offices in Texas, Connecticut, Florida and Tennessee became a regular routine. McGivern recalls one of his most memorable jobs in terms of risk—repainting the Dallas Convention Center in preparation for the re-nomination of President Reagan. While it was an impressive task, it came with a serious degree of liability. “It had to be completed on time and done exactly to specifications, or there would be hell to pay,” McGivern recalled. Working 20 hours a day, seven days a week, the crew actually finished ahead of schedule. Successfully executing those types of complex painting jobs opened up even more opportunities for the business. “I was fortunate to have a few companies that gave me the opportunity—more like forced me—to take on jobs above my experience level,” McGivern said with a chuckle. “We got paid to learn.”

Revealing the Masterpiece

Jack McGivern sold the family business to his oldest son, John, 13 years ago, but he didn’t simply walk away. In fact, when he isn’t off on consulting jobs, you will find him in the office giving advice or just harassing Lois. McGivern takes a humble view of his accomplishments, claiming his success isn’t out of the ordinary. But by most measures, a man who builds a multimillion-dollar business while raising 11 children is anything but ordinary. ►

The McGivern Family

TK Business magazine

Spring 2014

terry

Bettis

Ask most successful businessmen the secret to their success and you will get answers such as a good education, hard work or tenacity. For Terry Bettis, that secret has always been sports—or more specifically, the focus that comes with being an athlete.

Play Ball!

To say that Bettis grew up in a family of baseball enthusiasts would be a gross understatement; it was more like baseball fanatics. His parents played a key role in establishing Shawnee County Amateur Baseball Association, and he practically grew up on the baseball diamonds there at the lake. Needless to say, baseball was in his blood, but it wasn’t the only sport he loved. Bettis was the starting quarterback for two years at Topeka West as well as a varsity basketball player. He went on to play baseball for Washburn University and then signed with the Montreal Expos in 1969, where he played both “A” and “AA” ball for a few years before hurting his arm.

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Tk Business magazine

Finding a New Playbook

That injury brought out the practical side of Bettis. He had a degree in business and decided it was time to put that education to good use. Bettis and his wife, Karen (his high school sweetheart) moved back to Topeka, where he went to work for John Hankamer, who taught him the asphalt business. Then in 1979, under the guidance of Bob Douglas, owner of Douglas Construction Co., he opened the doors of Bettis Asphalt. Bettis used the same drive and focus that made him a great athlete to build a successful business. Karen Bettis says it was always obvious that he enjoyed the asphalt business because he had his hands in every aspect of the business. “He enjoyed working,” Karen said. He enjoyed the competition of bidding and completing different projects each year, supporting his family, and doing his best work every time.” That dedication to quality work earned him a reputation in the community. Soon he was winning bids on larger projects such

as Westridge Mall and Topeka Boulevard. Topeka was in a growth stage at the time, so business was booming for Bettis Asphalt.

Facing the Curve Ball

Everything was running smoothly for Bettis. He was in his 50s—in the prime of his life. His business had a solid foundation, his children were grown and beginning lives of their own. And then life threw him a curve ball. Diagnosed with Alzheimer’s, his family had to face the grim reality of his deteriorating health. He continued operating the business with the help of family and long-time employees until 2006, when Bettis’ condition made it impossible for him to remain.

Hitting it out of the park

As most close-knit families do, the Bettis family pulled together in their time of tragedy. All three of Bettis’ children have taken over the family business and have expanded it to add more plants and broaden the customer base. That expansion, Karen Bettis says, is all possible because their father left them a financially strong company with a solid customer base. “Terry should be so proud of what his children have done with the business,” Karen Bettis said. “After all, they got their strong work ethic and business sense from their dad.” TK Terry Bettis passed away February 11, 2014.

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TK Business magazine

Spring 2014

The Art of the General From the Professor

Companies are looking to their leaders to set and execute effective strategy.

Elements of a Good Strategy

BY DAVID SOLLARS Businesses go bankrupt. Notfor-profit service providers flounder. Government agencies fail to deliver value in return for the tax dollar. These failures are pinned on poor leadership, poor organization and changes in the external environment. Often, these reasons are just symptoms of a larger problem, namely the lack of a coherent and properly executed strategy for the organization. What is strategy? Our strategy “is to lower prices” or “increase service levels” or “change our marketing.” These serious sounding examples however, are not strategy. My favorite strategy definition is “a careful plan or method for achieving a particular goal, usually over a long period of time.” Born in ancient military activities, some definitions describe strategy as the “art of the general.” A leader must, like a general, be able to set and execute the strategy for an entire organization. Do leaders “do strategy” alone? Of course not. Each of the organization’s parts and its people must contribute to and understand strategy. But the leader alone is responsible for strategy.

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Tk Business magazine

Forward Thinking. Aware.

Strategy is forward thinking, aware of the environment.

Think of a chess-master, thinking several moves ahead. Chess is the quintessential game of strategy. Want a less cerebral example? How about a speedy point-guard leading a fast-break, aware of the movement of his teammates and opponents, and deciding to pass the ball to a better aligned teammate for a slam-dunk. Successful leaders/organizations spend little time worrying about today and or the past. They instead learn from the past, try to understand today, but focus on the future because strategy is future-focused.

Focused.

Strategy is focused action.

The successful Washburn University School of Business where I work has focused on “offering high-quality education,” not chasing every opportunity to be all things to all people. Even successful organizations lose sight of where they are heading. Example: the 1970 and 80s cookie cutter General Motors rust-buckets—you could have roughly the same car as a Chevrolet, a Buick, an Oldsmobile or even Cadillac. The focus was on permutations of past success. However, economy of a common platform were soon surpassed by the burgeoning costs of supporting multiple dealer networks and everexploding inventory costs. GM was caught flat-footed in the eyes of consumers who wanted smaller, reliable, fuel-efficient cars, not a Chevy Cavalier with a Cadillac Cimarron badge. Honda and Toyota offered fewer models, but met the needs of the buyer. There is that old saying that the hedgehog outsmarts the fox because the hedgehog only focuses on one thing and does it well, while the fox has all kinds of gimmicks. Where can you be successful? Focus there.

Leverage.

Strategy is leverage against larger competition.

In antiquity the Carthaginians defeated an overwhelmingly superior Roman army at Cannae. Hannibal leveraged knowledge of the Roman legions’ tendency to rush head-long into battle. Hannibal’s army set the trap, absorbed his enemy’s initial surge, and then surrounded and destroyed the Romans. Not a history buff? Ever catch the movie Roadhouse? (Admit it, you have!) Patrick Swayze plays a short, svelte bar bouncer, able to take on bigger, tougher guys by leveraging his knowledge of their weak point (the knee joint) that he can exploit in a physical altercation (ouch!). Own a small business with larger competitors? Your strategy should exploit your nimbleness while attacking their weaknesses. A growing local firm like Advisors Excel is a good example of a David beating Goliath.

TK Business magazine

Spring 2014

Strategy is a Process. Define your mission.

Why does your organization exist? Who do you serve? Often, the best way to get at this mission thing is by asking: If we didn’t exist, who would miss us and why? These are your customers or constituents. Then you can ask another question. If we closed tomorrow, who would fill the void? Now you have identified your competition.

Define the measurable objectives and goals.

That which is measured gets done. If you, as leader, fail to define and measure what it is you are trying to accomplish, should you be surprised that your employees, partners, customers or investors won’t know either? Remember, no “striving” is allowed. No “planning to.” Be clear, consistent.

Develop a strategy that moves your organization from where it is today to where you achieve your goals and objectives.

What will it take to close the gap? What are the constraints and obstacles? How will you get there? What staging is required? Lots of moving parts here, lots of unknowns. Good strategy is hard. Money, people, technology, relationships. If you follow the process, you will be able to explore many strategies and figure out which one you want to follow. Solutions require analysis and patience. Leaders often fall into the trap of selecting the “most obvious” solution before completing an analysis of the alternatives. The Civil War army of General Sherman didn’t attack the forces of Robert E. Lee in a frontal assault. Instead, his 60,000-man army took months to make a destructive path through Georgia and the Carolinas, not only cutting the Confederates’ supply lines, but also driving a dagger into the southern will to fight, thereby helping to end the war. Upon rejoining Apple in 1996, CEO Steve Jobs severely reduced Apple’s product offerings, closed retail stores, and as he put it, “waited for the next big thing.” The ubiquitous iPod (and then iPhone) was soon born. Time is money, but making a quick wrong choice can doom your enterprise.

Execute.

A football team with a great game plan still loses if it doesn’t tackle, or fumbles the ball on the last drive. You must execute your strategy. Yes, you may have to make some adjustments along the way as you learn new things; but being confident with your strategy and executing it is key. So, if you do all of these things you will be successful, right? No. The market place is tough and unsympathetic. Good leaders and great organizations with good strategies get overwhelmed by new technologies and consumer whims. Your opponents will also have a strategy. But by focusing on your strategy you will increase the odds that your organization will reach its goals. That is what leadership is all about. TK

spring 2014

Tk Business magazine

Common Strategy Mistakes Bafflegab.

Committees devour hours of time. Organizations hire expensive consultants, have month-long processes, and do other slick things, which lead to organizational strategies that are as substantive as cotton candy. Self-congratulatory platitudes, marketing taglines or so-very-inclusive mission statements are not strategy.

Confusing goals and objectives with strategy. “Our strategy is to increase sales by 20 percent” or “increase our load by 200 cases next year.” Both of these statements are goal statements, not strategy. It tells us nothing about how one will get there. Even worse are declarations to “strive,” “work harder” or “focus more.” Maybe you need to do these things, but they are not strategy.

Being incoherent or inconsistent.

Some of the best turnaround artists I know of have told me that they keep the strategy simple and clear, and then stay on message. Both Burger King and Ford Motor Company (led through a turnaround by Kansans, btw) had strategic plans that could fit on one piece of paper.

Thinking that charismatic leadership is required. Jim Collin’s Good to Great books point out that many of the most successful corporate leaders are not household names. Instead, they tend to fly under the radar. Great strategic leaders can also be very charismatic, but they don’t have to be. For every Winston Churchill, there is George C. Marshall—the architect responsible for rebuilding a war-torn world after WWII. For every Steve Jobs there is Tim Cook—the current Apple CEO who most of us couldn’t pick out of a line-up. Charisma is not required. Leadership is. TK

David Sollars Professor of Economics/Dean Washburn University School of Business

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Spring 2014

Expert: Advertising

TIM KOLLING, Marketing Consultant WIBW Radio

How do I maximize my advertising dollars? A: Q:

“What would you do if you were us?” From mom and pop businesses to multimillion dollar national companies, that is the question I have heard the most in 21 years in the advertising industry. First, figure out how to tell your story, but remember you are telling this story to a consumer who wants to know what your product or service will do for them. This is how you build your brand and eventually build a relationship with your customer. Next, think about today’s society. All of us are busy, busy, busy. We are all on the go with careers, kids, social activities, civic groups, church activities, networking events, etc., and therefore, we get our information and entertainment on the go. Look to media that people relate to and can consume while they are doing other things and going to and from their countless commitments. Associate your advertising with media that has a local connection. Consumers like to do business with people they trust and placing your advertising with media that has the strength of local personalities can give you credibility and an advantage.

spring 2014

Understand your customer and then find out which media outlets are talking to your target. Start small and find an audience or a medium that you can dominate. Remember it’s better to convince 10 percent of the people 100 percent of the way than to convince 100 percent of the people only 10 percent of the way. Don’t try to be in every media outlet that talks to your target if your budget won’t allow. Pick one and stay consistent there. Once your business grows, your advertising budget will grow, and then you can expand and introduce yourself to new audiences. Remember, people do not respond immediately to ads. They only respond when they have the need for the product or service. Your goal is to be top of mind with your customer so that when they need your product or service, they will know about you and choose you. TK

Tk Business magazine

ADVERTISING PLAN REMINDERS • Define who you are to the customer. • Develop your brand based on what the customer wants. • Select an advertising medium that fits your target. • Build a relationship with potential customers. • Don’t try to be everything to everyone. • Evaluate your advertising by overall traffic and sales over time. • Be involved with social media but be cautious. Monitor it constantly. • Ask for help. Good advertising consultants will help you find the right places to be.

Sometimes hospice patients and their families need a home away from home. By lifting the burden of care, we give families time with each other to share treasured stories. The House at Midland Care: • Registered nursing care 24/7 • Physicians certified in pain and symptom management • Personal care attendants, social worker and ecumenical chaplain • CHAP accredited

785.232.2044 www.midlandcare.org The community not-for-profit hospice that families have turned to for more than 30 years.

TK Business magazine

Spring 2014

Expert: Innovation

Q: A:

Where does an INNOVATION STRATEGY fit into an OVERALL ORGANIZATIONAL FRAMEWORK?

Continuous improvement and innovation are not mutually exclusive and the skills and structure that are in place for continuous improvement provide a great building block for innovation. As you start to think about becoming more innovative, there are two major areas to consider: 1. Your strategy for innovation. 2. Your processes for innovation. Lean Six Sigma has developed a framework called the “Continuous Innovation Framework” to help guide an organization as it develops and sustains innovation and improvements. A Continuous Innovation Framework is focused on creating value along the organization’s business processes by understanding how to create, manage and improve products, process and services in a life cycle approach. As you focus on a Continuous Innovation Framework, the culture is changed from an inward-focused company to a company that is outward focused, customer-centric, and future oriented. People will take more pride in their work knowing that they can truly make a difference even if their job does not directly impact end customers. They can focus on innovating and improving their own work and areas. They can also become more involved in providing value outside of their traditional department by making use of collaboration and teamfocused work rather than thinking that they should just do their job. All of this will lead to a company that is "future proof " for the changes that are coming in this increasingly complex global world.

spring 2014

THOMAS UNDERWOOD, Assistant Dean of Academic Outreach, Washburn University DOUG VON FELDT, Innovation and Continuous Improvement Leader and Certified Lean Six Sigma Master Black Belt, Crimson Corporation and Washburn University CONTINUOUS INNOVATION FRAMEWORK I3 Innovation Process Innovation Framework

Innovation Framework

Identify

Innovate

Implement

Create Strategy

Identify Unmet Needs

Discover and Select Solution

Verify and Move to Production

Monitor and Improve

Identify Strategic Focus

Identify Need

Discover Solutions

Finalize Solution

Identify Strategic Focus

Create Innovation Goals

Identify Ideas

Select Solution

Validate/Verify Production Solution

Create CI Goals

Create/Implement Innovation Framework

Create Business Case

Optimize Solution

Transition to Operations

Create/Implement CI Framework

Is your company innovative?

Questions to help you consider if your innovation initiative is on track.

Tk Business magazine

• Do you understand your competitive and unique competencies as an organization? • Do you have a common definition of innovation across the organization? • Have you determined what areas along the organizational processes or value stream are ripe for innovation? • Have you created a strategy around product portfolios to minimize risk but still maximize growth? • Have you created an innovation pipeline process that includes all stakeholders? • Can you clearly articulate your innovation process?

TK Business magazine

Winter 2013

Tk Business magazine

Expert: Business Plan WHERE

Where will you be locating your business? Where you locate may make or break your success. How your customers will access your business is very important. For a retail business location you need to be easy to find and convenient for your customers; however, if you are an online business, the physical location is not as important as having the technology that people can access.

WHEN

ALLAN P. TOWLE, President Fidelity State Bank and Trust Co.

I need a loan to grow my business. What does the bank want to see in my business plan?

The best place to start is to make sure you know what it will take for your business idea or expansion to be successful. Remember the What, Who, Why, Where and When.

if there will be enough demand for your product or service. If your product only appeals to a small customer base, will that be enough to get a return for your efforts?

WHAT

Why will you be better than the competition? This is a critical element of success. Someone is always looking at how to do what you do better. You should document what makes your business able to compete and create an acceptable return for your efforts, which will allow you to stay focused and remain competitive. Just being best at customer service is not enough. You must add value to the customer to set yourself apart.

What is it that you want to do? This is an explanation of the business starting with a general description and followed by more detail of the business.

WHO

Who are your customers? This is who will buy your product or service, or who will rent your space. Identifying the ideal customer is critical in determining

RECOMMENDATIONS FROM THE BANKER

WHY

â&#x20AC;˘ Many business plan models and other sources of information can help you complete a business plan. I highly recommend the Washburn University Small Business Center for support and guidance.

When will you see a return for your efforts? This is the financial information. You should make projections based on conservative yet realistic information to determine if you can be successful. Three-year projections can be helpful. The first year of a new business or an expansion is likely not going to look like the next year. Even the first year of owning a building or rental property is likely to have higher costs and less income than future years. You will also need to create reserves for unexpected or large infrequent expenses, such as a new roof on your building, or new equipment. After you have taken into account all the operating expenses and reserves, you will look at how much income you expect to earn. You will want to create enough income to cover all the above costs, plus pay the cost of financing and have additional funds left for you. You should also plan to leave some income in the business to keep the business financially strong. A strong business plan allows you to know if you can be successful. This business plan plus some past financial information will allow you to be confident and prepared to talk to a banker about financing the great things you could do.

â&#x20AC;˘ Every small business should have a banker, accountant and attorney on their team. The better they understand your particular business, the better they can assist in your success.

TK Business magazine

Spring 2014

Expert: Human Resources Management KRISTINA DIETRICK, PHR, President and Owner JOHN DIETRICK, CEO, General Counsel GAIL HERMESCH, HR Consultant MARCIA BLAIR, Executive Assistant DEBRA BUSH, HR Advisor DESIREE OUTERSKY, HR Advisor CHELSEA RENYER, HR Advisor LARRY BEAM, HR Consultant

Creative Business Solutions

Why does a business need an Employee Handbook?

Although a company is not legally required to distribute an employee handbook, it is a good business practice to follow. Not only does an employee handbook provide employees general information regarding company policies,

HR DOCUMENT: THE JOB DESCRIPTION Job descriptions provide many benefits to both the employee and employer. Major elements of a job description include: • Fair Labor Standards Act (FLSA) status (exempt or non-exempt) • Physical requirements of the position • Responsibilities of the position and the minimum qualifications required to perform the job duties. Job descriptions may also include: • Direct report supervisor • Work schedule • Acknowledgement of understanding requiring the employee’s signature. Not only do job descriptions provide specific information to employees regarding their position, they may also be utilized during performance evaluations to measure overall

procedures and benefits, it also outlines company expectations and provides information related to company culture. Creating and enforcing a well-written employee handbook provides a solid foundation so employees have a reference

performance outcomes specifically tied to the responsibilities of the position. A good job description is a win-win for both the employer and the employee.

HR DOCUMENT "MUST HAVES" CHECKLIST The required documents may vary from one company to another. Various forms employers should always provide to employees for completion include, but are not limited to: o Offer letter o Employee data and emergency contact information o Job description acknowledgement form o Employee handbook acknowledgement form o Benefit enrollment and/or waiver form o Required employer model notice under the Affordable Care Act o W-4 o K-4 o Direct deposit or required payroll information o Federal I-9 form with required forms of employee identification

point for important employment information. The most critical component of an employee handbook is an acknowledgement form for employees to sign and confirm their understanding of the information within the handbook.

PRIVATE

My personnel files are a mess! How and what do I need to file?

Each employee should have a general personnel file and a confidential personnel file. The general personnel file should contain performance evaluations and disciplinary documents—filed by date with the most recent information located on top in a secure location at all times. Only a select few should have access to an employee's personnel file. All documents containing protected and/or non-job related information (date of birth, marital status, SSN’s, medical information, immigration status, race, gender, sexual orientation, criminal history, financial history, etc.) should be filed separately in a confidential personnel file. The HR department and the CEO should be the only individuals who have access to a confidential personnel file.

Also available at 900 N. Ks Ave

TK Business magazine

Spring 2014

spring 2014

Tk Business magazine

SCene about town

Greater Topeka Chamber of Commerce Annual Meeting Ramada Downtown Hotel and Convention Center January 13, 2014 PHOTO 1

Eric Fitzmorris, Jean Smith, Ernie Boehner, Dylan Woods, Kim Carlson, Kim Brabits, Dan Sheehan and Jodi Bolivar, Catholic Charities of Kansas

PHOTO 2

Greg Herrs, Jim Schmank, Emily Marquart, Errol Williams, Mary Anne Durall, Frank Rosa, Paula Dell and Dave Keith, se2

PHOTO 3

Ashley Charest and Bill Yanek, Centric Management and Consulting; Cathy Gregg, WIBW TV; Stacy Ricks and Kathi Flowers, Blue Cross Blue Shield

PHOTO 4

Rick Jackson and Carl Ricketts, Capitol Federal Savings; Brent Boles, Schendel Pest; Gary Yager, Vision Bank

PHOTO 5

Brian Bookwalter, Dan Billen and Gary Jones, jones huyett Partners

PHOTO 6

Debra Bush, Desiree Outersky, Kristina Dietrick, Chelsea Renyer, Marcia Blair, Creative Business Solutions

PHOTO 7

Chris McGee, Wells Fargo Advisors, Brett Klausman, Midwest Health; Jeff Hiestand, Core First; Mark Rezac, KS Commercial

PHOTO 8

Allyson Shove, Educational Credit Union; Eric Claspill, Waddell & Reed; Jennifer Kirmse, Educational Credit Union

PHOTO 9

Cacy Klumpp, Feel Good Nutrition; Vince Frye, Downtown Topeka, Inc.; Glenda Washington, Entrepreneurial & Minority Business Development

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Winter 2013

Tk Business magazine

SCene about town

Downtown Topeka, Inc. Annual Meeting Jayhawk Tower Thursday, January 16, 2014 PHOTO 1

Greg Fox, RowHouse Restaurant; Ryan Wenrich, Quiznos and Dickies BBQ; Eddie Smith, Stephen Smith Images and Downtown Topeka, Inc.

PHOTO 2

Brendan Jensen, Jensen Communications; Mark Kossler, Fidelity Bank & Trust; Marsha Oliver and Stephanie Luke, Mize Houser & Company

PHOTO 3

Jim Rinner, JE Dunn Construction; Ryan Wenrich, Quiznos and Dickies BBQ; Scott Griffith, INTRUST Bank

PHOTO 4

Jim Driggers, The Computer Store; Pat Michaelis, Midwest Housing; Ryan Mohwinkle, State Farm Insurance

PHOTO 5

Vince Frye, Downtown Topeka, Inc; Marsha Sheahan, Greater Topeka Chamber of Commerce; Mitch Miller and Phil Tysinger, Dynamic Computer Solutions

PHOTO 6

Tina Pfiefer, New Century Credit Union; Abby Araiza, Cumulus

SCene about town

Topeka Independent Business Association Meeting February 12, 2014 Lawyers Title of Topeka PHOTO 1

Michael Driver, Scott Hollomon, CPA; Dave Lesperance, Heritage Bank; David Lippe, MACI Publishing; Ernie Beaudet, Heritage Bank

PHOTO 2

Nicole Schings, Kansas Association of Insurance Agents; Tim Kolling, WIBW Radio; Joan Sutton, Kansas Association of Insurance Agents

PHOTO 3

Joe Gigous, Model One, Inc.; Karl Klein, Washburn Small Business Development Center; Gina Ochsner, Century Health

PHOTO 4

Jim Driggers, The Computer Store; Stan Martindale, Topeka Electric Motor; Keith Richards, Meridian Roofing Solutions; Lee Hartman, Topeka Metro Voice

PHOTO 5

Ira Stamm, Ph.D.; Hayden and Chris St. John, Lawyers Title; Todd Manning, Manning Music; Mike Falley, Corporate Plan Management; Jennifer Kirmse, Educational Credit Union; Bob Evenson, RW Evenson

PHOTO 6

Tara Dimick, E2 Communications; Ty Hysten, Century Health