Ask The Experts

2009|2010

published by

V

ermont Business Magazine is proud to present the first biannual issue of Ask the Experts. Within the pages of this special issue are companies who are experts in their specific fields. They are represented here to share their expert advice for companies such as yours. In today’s difficult economic climate any advice can be useful to every business.

To that end, we are proud to publish articles on such topics as Data Networking from one of the leading companies on this subject, Systems Plus Computers. They discuss the need for better communication and success in the marketplace by simply installing a cost-effective server to manage your data. Cambium Group writes about the need for a Web site content management system. If you are a company or individual in Vermont looking to expand you office or build your new home there is an article on Green Building by the McKernon Group in Brandon. McKernon Group has given “Green” new meaning in the construction industry. In this Q&A formatted article they discuss the advantages of building green including the time you save on construction. Some other topics within these pages of Ask the Experts include Wealth Management, The Power of Branding, the Electronic Workplace, Financial Literacy and many more.

In all there are 17 companies represented in the following pages. We’re confident you’ll find insightful information useful to your own business. We also encourage our readers to contact these fine companies for further information and, by all means, Ask the Experts.

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Ask the Experts 2009 | vermontbiz.com

TABLE OF CONTENTS

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WEALTH MANAGEMENT

6

HEALTH EXERCISE PRACTICES

8

METRO AREA NETWORKING

10

Project Road Safe WORKPLACE SAFETY

24 COST EFFECTIVE COMPRESSED AIR SYSTEM

26 THE POWER OF BRANDING

28 DATA NETWORKING

WEB CONTENT MANAGEMENT

30

12

ELECTRONIC WORKPLACE

14 CUSTOMIZED BUSINESS SOFTWARE

16

BUILDING GREEN EFFICIENTLY

22

FINANCIAL LITERACY

TECHNOLOGY TRENDS

WORK OPPORTUNITIES

32 34

36

18 COLLEGE FINANCING

WORKPLACE CULTURE

20 SOCIALLY RESPONSIBLE INVESTMENTS

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WORKSHOPS AND GREEN INITIATIVES

WELLNESS PROGRAMS

8,000 Vermonters Participate in National Walk @ Lunch Day SM

Story provided by Blue Cross and Blue Shield of Vermont

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n April 30, Blue Cross and Blue Shield of Vermont joined its sister Blue plans across the country in hosting the second annual National Walk @ Lunch Day.SM National Walk @ Lunch Day, sponsored by the Blue Cross and Blue Shield Association, encourages people to take time during their lunch breaks to start walking toward better health. Vermont employers and school leaders hosted walks throughout the state and BCBSVT sponsored six community walks in Vermont cities and towns. About 8,000 Vermonters participated in the event, despite snow and low temperatures.

BCBSVT was proud this year to welcome support from the American Heart Association and the Vermont Education Health Initiative, or VEHI (the health plan covering educators and other school staff in Vermont).

The Heart Association lent support at a walk at the

Champlain Valley Office of Economic Opportunity in Burlington.

Vermont State House in Montpelier. VEHI helped get the word out to the teachers and students who walked at 39 schools across the state. “We work at different sites around the city and don’t see each other very often.”

“The entire school with faculty and staff walked one mile along “National Walk @ Lunch Day is designed to educate millions of the snowmobile trail that passes by the school,” said Genevra consumers about how their daily decisions can have an impact on Lavigne of the East Haven River School in East Haven, Vermont. their health and wellbeing,” said Don George, Vice President, “We greatly enjoyed walking in the cool weather, catching snowflakes Managed Health Systems and interim CEO of on our tongues. We have decided to have the school participate Blue Cross and Blue Shield of Vermont. “It also creates an regularly in this school-wide activity next year,” she reported. opportunity for employers to engage their employees in physical Most Americans’ schedules are built around their workdays, activity that promotes a healthier workplace environment, which so National Walk @ Lunch Day is designed to fit into — not helps control the rising cost of health care in our nation.” compete with — the average daily routine. More than 45 employers Blue Cross and Blue Shield of Vermont has developed in Vermont supported National Walk @ Lunch Day Blue HealthSolutionsSM — a suite of wellness and health by encouraging their workforces to participate.

“It was wonderful to do something together,” reported management programs designed to help members at all Peggy Treanor of the walk she took with her co-workers at the points in the health spectrum, including: s $ISCOUNTS ON HEALTH AND WELLNESS SERVICES AND SUPPLIES s 7ALKING MAPS POSTERS PEDOMETERS AND other supplies for walking programs s ! HOUR PHONE LINE THROUGH WHICH registered nurses offer help and support s /UR ONLINE WELLNESS CENTER WHICH OFFERS personalized health coaching with the click of a mouse s $ISEASE MANAGEMENT PROGRAMS THAT HELP MEMBERS WITH chronic illnesses get the treatment and support they need s /UR POPULAR "ETTER "EGINNINGS® program for expecting moms s 3UPPORT FOR MEMBERS WITH SERIOUS CONDITIONS THROUGH our team of specialty nurse case managers These programs and more show our commitment to a healthier Vermont.

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Ask the Experts 2009 | vermontbiz.com

METRO AREA NETWORKING

Manage business success with Metro Area Networking (MAN) Q

uite often, business success can lead to issues managing growth more than anything else. While there are many factors to be considered, the physical space issue can often be one of the most difficult to tackle.

For instance, let’s look at XYZ Company.

They are having their best year since inception, now employing over 20 people, gaining national recognition, riding a trend which promises to take the business to “the next level” and beyond.

Unfortunately, XYZ needs more warehouse space. Both the administrative and sales staffs are in need of additional bodies, yet there is no space left for them either. Management is concerned about what to do. Where do they put everyone? What about the additional inventory?

How will they continue to expand the business within the confines of the current space?

In the past, XYZ would have had some tough choices to make. They could either relocate the business to new facilities in town, or move altogether to a different town. But this goes against everything for which the business stands. Management believes that the

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essence of the business is that they are “one with the community” - it has been such for 10 years. They are certain that business identity and brand are so intertwined with the host city that moving, it is feared, would damage that image and alter the market’s perception of the company. As well, they recently renewed their lease for an additional seven years. Moving out of the existing space is not impossible, but it is not considered a viable option either.

XYZ is pleased to learn from their realtor that there is plenty of smaller, application specific locations available throughout the city that will suit their needs quite well. There is a great vacant warehouse space near the highway that has become available. And there is enough space at an office building less than a mile away to migrate existing administration and sales departments, both based on current and future needs. The terms of both leases are favorable and management thinks this is the best way to move forward.

The question remaining now is how XYZ can manage their voice and data communications needs across and between multiple sites?

Ask the Experts 2009 | vermontbiz.com

XYZ’s technical staff is concerned about adequately supporting users in multiple locations.

They state that using the traditional circuit based technologies offered by the phone company or using the Internet as a way to bridge its network connection to the new site(s) both have serious shortcomings.

They voice concerns about the poor performance / high cost of T1 or DS3 connections when using traditional circuit based solutions.

But they like the security of this type of private connection and the fact that they know exactly what the performance will City. (In fact, Burlington Telecom is one of 35 be day in and day out.

When contemplating using the Internet as the Certified Fiber to the Home service providers LAN bridge, their concerns are about the lack in the US.) This is all wonderful, think XYZ of reliable daily performance inherent with the principals, but what is the solution to the cost/ performance dilemma discussed earlier? private connection model.

Introducing Metro Area Networking(MAN).

While traditional circuits have always been This solution uses some of the simplest, most costly, both in terms of the network hardware needed and reoccurring monthly cost, using the proven networking technology available. The Internet is no more appealing. They know that foundation of MAN is Ethernet. If you have extending the network by using an Internet VPN computers in your office networked together, (virtual private network) may be moderately chances are you already know about Ethernet successful, depending upon what applications and how simple it is to setup.

With MAN, XYZ will receive unmatched XYZ would need to use. But the public Internet is not as reliable as a private network connec- data network speed and performance between tion, and ultimately, XYZ would be limited by the sites while keeping the simplicity of their existnature of the Internet, with its non-guaranteed ing network intact. They can connect directly performance. They also don’t want to manage to the high-speed LAN switches they already multiple firewalls and complain about the cost own, without needing to add routers and and amount of Internet bandwidth they could other peripheral equipment. Data traversing the MAN doesn’t have to go through multiple afford to purchase.

Fortunately, XYZ is located in Burlington, protocol changes, keeping latency minimized.

VT, which, like 35 other US municipali- The solution is surprising affordable given the ties, has invested in the local communica- performance, security, reliability and scalability tions infrastructure by building an extensive of this service.

Point-to-Point and Point-to-Multi-Point fiber optic network.

Beginning in 2002, the City of Burlington Ethernet circuits are new available and allow created an independent department to build businesses to create their own MAN by cona state-of-the-art fiber-to-the-home network. necting two or more sites together at speeds Initially this was for selfish reasons – the City of between 2Mbps and 1Gbps. Companies was experiencing the same issues as XYZ. There in communities such Burlington who are in were difficulties maintaining communications need additional space now have a practiservices for all users at reasonable cost to the cal, affordable solution with regards to impleCity. With some 35 locations, the City had menting communications connections between to look towards the future and build on the multiple sites.

Several organizations have taken this promise of technology. They decided on building a network using the “overbuild” mental- approach and are enjoying controlled, cost ity, running enough fiber to connect each and effective expansion without having to relocate every home and business customer with their – within Burlington or outside of the City limits. own, unique fiber optic network connection The benefits are many. This solution is possible due to the advent of MAN and a future-proof plus 20%.

This abundant fiber cable plant affords technology of fiber-to-the-premise overbuilding. businesses within the City with the ability to connect multiple sites at LAN speeds using the ubiquitous networking favorite, Ethernet.

The design model used is “fiber-to-the-premise”, passing nearly every business address in the

WEB CONTENT MANAGEMENT

Choosing a Web Site Content Management System – a Smart Investment for your Business.

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our company’s web site needs to accomplish three key things in order to be successful and profitable for your business. The first is to attract your target audience with a design that is compelling, sophisticated and easy to navigate. The second is to make sure your web site can easily be found on the internet and through search engines. The third and perhaps most important is keeping the web site up-to-date and timely once you’ve launched a successful design to reach your audience online.

A web site content management system (CMS) will give you tools to maintain the content on your web site including text, photos, news, events, products, pricing, inventory and much more. However, choosing a content management system can be one of the biggest challenges a company faces when building its online identity. The tools range from high-end corporate solutions that do all you could ask for a hefty price tag down to inexpensive and free tools you set up and maintain yourself. The needs and resources of each company are different.

Content management systems provide many benefits, including the ability for your business to: s -AKE CHANGES MORE QUICKLY AND LESS EXPENSIVELY s -AINTAIN BRAND AND A CONSISTENT STYLE THROUGHOUT THE SITE s $ELIVER CONTENT FASTER TO YOUR TARGET audience and customers s $ELEGATE SITE MAINTENANCE TO YOUR APPROPRIATE STAFF s 2ANK HIGHER IN SEARCH ENGINES WITH DYNAMIC CONTENT THAT you change regularly One fact is universal: the heart of every successful web site is its content management system. No matter how pretty the site looks to the user, the system that organizes the creation, editing, managing, and publishing of the content in a consistently organized fashion is essential to a lucrative company web site. As more and more commerce shifts online, businesses have realized they need greater control over what and when their content goes online and how it looks when it gets there. To maximize profitability and flexibility, a business needs to maintain complete control of its site.

Also important to consider with a content management system is the design of the site. You could choose an “off-the-shelf” solution and continually pay a web developer to customize that solution for your business. Or you could spend countless, nonprofitable hours using an inexpensive or free tool that provides a pre-designed template where you add your logo and photos, and once finished may look similar to hundreds of other web sites. A costly lesson may be learned here when “you get what you pay for”.

A template design produces a canned looking web site, which won’t capture site visitors’ attention and most often won’t be designed or programmed to be search engine friendly.

Although a content management system may be offered with inexpensive solutions, they are often limiting, allowing you to only manage certain areas of the site, are not easy to use, and don’t allow you to expand the site at your own pace. A more flexible and cost-effective solution is a content management system which may be tailored to your company’s specific needs.

Not a design that uses a template, but a custom design that extends your branding online, while giving you tools to add content and make changes in-house, eliminating the need for expensive outsourcing or information technology departments.

A well developed, customizable content management system

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should allow you to easily conduct ongoing maintenance of your web site. The best choice is one that offers the ability to update and change virtually everything on the site including text, photos, news, events, rates, products, job openings and the numerous areas of content important to your particular business. No matter how technically savvy or inept you or your staff may be, a great CMS should be easy to use but still allow for a wealth of options.

Expandability and sustainability must also be considered when it’s critical to provide advanced web technologies includING E COMMERCE VIDEO PODCASTS ONLINE CHAT BLOGS 233 FEEDS

surveys and email campaigns to your target audience. A robust CMS should allow integration of these technologies without the need to re-architect or re-build the entire web site design.

And if your business has the need for multiple sites such as a password-protected site for customers or board of directors, a mobile site for hand-held devices or a company intranet, a custom CMS will allow you to manage all sites within one system and share content among those sites if necessary.

Choosing an experienced web development company who offers a content management system and builds custom web site designs may be the most valuable investment you can make for your business. An experienced designer will begin the development process with the architecture, or site map, of the web site to fully understand the content of the site and then make recommendations on how best to manage that content.

The designer should then follow industry best practices and use proven design elements to build a custom design tailored to your target audience. The navigation and layout of the site should be user-friendly and intuitive while allowing you to add, modify, delete, sort and re-order pages through the CMS. The design should also balance graphics with text and provide

Ask the Experts 2009 | vermontbiz.com

points of interaction with the goal of encouraging visitors to take action.

While an impressive web site design and easy-to-use CMS is the foundation for your company’s online presence, it’s most beneficial to work with a web development company that can offer even more value for your investment. A fully integrated online strategy may consist of additional services from your web developer such as search engine marketing (natural search engine optimization (SEO), paid search engine marketing (payper-click) and local search), email marketing and social media marketing. Web site analytics software should also be offered to track the results of the web site and online campaigns. Analysis of web site performance in key areas to support online goals is critical to understand what is working well on the site, and where improvements may be necessary.

In a fast-paced marketplace, and with a challenging economy, your business web site needs to be fresh and current. And why not have complete control of all content at the same time?

A robust, flexible CMS could be the most valuable investment for your business – and may just be the smartest way to control your business online.

ELECTRONIC WORKPLACE

How To Manage The Electronic Workplace C

ell phones, e-mail, the internet: these tools streamline workplace tasks and enable employees to work more efficiently. Technology in the workplace, however, is not without its legal pitfalls. Employers should be aware of the potential legal consequences associated with the electronic workplace and devise a plan to address them.

WHAT ARE THE POTENTIAL ISSUES? E-MAIL s

Whether coordinating weekend plans, or conversing on the latest episode of “Survivor,” employees may abuse their e-mail access, spending an inordinate amount of work time exchanging personal messages.

An employee may send an e-mail with a double entendre or a joke about a priest, rabbi and minister (or worse). By sending inappropriate or offensive messages via e-mail, employees are exposing their employer to a potential discrimination or harassment claim.

Employees often write e-mails with a casualness similar to a verbal conversation. This lack of formality may cause problems for an employer when the e-mail is used as an exhibit in a subsequent lawsuit.

Employees may assume that deleted e-mails truly disappear. They don’t. In litigation, opposing counsel may retain a computer expert to search a company’s computer network and retrieve harmful e-mail messages presumably deleted from the system.

s

s

s

THE INTERNET s

s

Holiday shopping. Visiting news websites.

Employees surfing the web for non-work related reasons waste their employer’s money by reducing employee productivity.

Employees with access to the Internet in the workplace may view, download or pass along to their co-workers obscene or offensive information retrieved from cyberspace, and subject their employer to potential liability.

CELL PHONES s

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An employee, driving on company business, causes an accident because she is talking on a cell phone while driving. The employer may be liable for this accident, even if the cell phone conversation was unrelated to business.

An employee with a camera phone may jeopardize the security of an employer’s proprietary information.

WHAT CAN AN EMPLOYER DO? With all of the potential problems described above, an employer needs to be proactive and design a plan for addressing the areas of exposure.

There are three specific steps that an employer should take to manage the electronic workplace.

STEP 1: ADOPT WORKPLACE POLICIES Employers should create clear policies for the electronic workplace.

Any policy relating to use of the company

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computer systems and communications services should at a minimum include the following: s

a statement that the computer and communications systems are the property of the employer; s a statement that employees should have no expectation of privacy in connection with their use of the company computer and communications system; s a statement that the employer reserves the right to monitor employees’ electronic communications; s an explanation of the business related reasons for the monitoring; and s a prohibition on inappropriate use, including the display or transmission of discriminatory, harassing, and defamatory communications or company proprietary information.

By warning employees that monitoring will occur, and by explaining that any electronic media is the property of the employer, an employee cannot reasonably claim any expectation of privacy in their e-mail messages or internet use. As a result, an employee would have no justification to assert an invasion of privacy claim.

In addition, to further protect itself, an employer should reiterate the proper use of the e-mail system and the internet in its anti-discrimination/ anti-harassment policy.

Regarding cell phone usage, an employer should implement a policy instructing employees on the proper protocol for phone use while driving an automobile. While a complete ban on cell phone use is not practical, and likely to be ignored by employees for that reason, employers should consider the following: (1) recommend the use of hand-free devices; (2) if an employee receives a phone call while driving, instruct him to pull safely off the road to conclude the conversation; (3) completely ban phone conversations in hazardous driving conditions. Any cell phone policy should also prohibit employees from using a camera phone to photograph company proprietary information, unless there is a business justification for doing so.

An employer must effectively communicate its policies to the entire workforce. Employees should sign an acknowledgement form, indicating that they understand and agree to comply with the company policies. These policies should be discussed at hiring and incorporated into any formal orientation program, and they should be included in any training program, which brings us to the second step.

STEP 2: TRAIN All employees should receive training on the company policies related to the electronic

Ask the Experts 2009 | vermontbiz.com

workplace. Employees should clearly understand what they can and cannot do. Further, employers must make sure that employees are aware of the available reporting mechanism if they believe the policies are being violated, especially in connec-

inappropriate internet use, immediate action should be taken, including investigation of the alleged conduct, counseling the subject employee and imposition of disciplinary action appropriate to the circumstances.

tion with the display of offensive or provocative images and the transmission of insulting, offensive or harassing e-mail messages.

In addition, employers should educate supervisors about the litigation process. Employees, and especially managers need to be aware that any and all documentation, including electronic information (such as e-mails, back-up tapes, data stored on blackberries/PDAs/cell phones, internet cache files, instant and text messages, voice mail messages) may be revealed during the litigation process. Managers should understand that they should not include statements in their electronic documentation that they would later regret hearing read back to them in front of a jury.

But what about an employee’s right to privacy?

Generally, the law provides an employer with discretion to monitor its employees’ electronic communications, as long as the employer has a legitimate business purpose for its conduct. The federal Electronic Communications Privacy Act provides that an employer may monitor an employee’s email, without the employee’s consent, if it is done for a business-related reason, which can include: making sure the equipment is being used for a work-related purpose; preventing improper use; or insuring the protection of proprietary information.

The Act also permits monitoring of an employee’s electronic use and communications when you give employees notice of the monitoring and consent is obtained from the employees. The consent may be implied, such as when an employee is informed that all e-mails will be monitored. Finally, once an e-mail is stored in the employer’s computer, an employer may access the messages at any time without notifying the employee.

STEP 3: MONITOR Considering the list of potential legal issues, employers must enforce their policies. Monitoring employees’ use of computers and phones of all kinds is an important part of that enforcement.

Software exists which allow employers to track network internet and e-mail use, and employers should take advantage of it. Additionally, employers should encourage employees to report any observations of unacceptable use of the internet or e-mail. If an employer discovers that an employee is abusing the e-mail system or engaging in

BOTTOM LINE By taking the three steps outlined above, an employer can effectively manage the electronic workplace, and reduce the potential for any legal liability.

CUSTOMIZED BUSINESS SOFTWARE

How to Customize Software to Maximize Your Success I

n the current economic climate, your business needs to be as efficient as possible to survive and grow.

And as your business grows you reach a point where Excel spreadsheets, home grown databases, and filing cabinets can’t keep pace. How can you use technology to streamline and expand your business?

THE PROBLEM WITH SPREADSHEETS Spreadsheets are a great way to store small amounts of data and calculate math formulas. All too often, these spreadsheets are relied upon to maintain and analyze critical company data. For example you might have a spreadsheet to keep track of shipments for the month for a particular customer. The spreadsheet works well, so you add a new tab for each month, save with a different filename for each customer, and voila you have all the data you need. But what happens when you need to put together a report at the end of the year for all your shipments for each month? The data is in there, but in so many different files and tabs that it is next to impossible to analyze.

OFF-THE-SHELF SOFTWARE: ONE SIZE DOES NOT FIT ALL To solve the spreadsheet problem, organizations may be tempted to buy an “off-the-shelf” software product. These packages are often marketed to keep track of every aspect of your business, even aspects unrelated to what you do.

Another shortcoming is the inability to track information unique to your business. You may end up needing spreadsheets and home-grown databases to track the additional information, which is exactly what you are trying to avoid. You try to get your business to fit the software instead of the software to fit your business.

Off-the-shelf systems can often be prohibitively expensive. According to SAP, a leading provider of commercial packages, software for a business of 15 employees can cost up to $225,000. That is just the cost of installation and does not include the ongoing expense of a

devoted IT staff nor additional licensing fees as your business grows.

THE PERFECT FIT Fortunately there is a better solution for companies with fixed budgets. With a little bit of planning and a lot less money, you can have a custom software solution built to manage as much or as little of your business as you need. This allows you to maintain only the information you need and helps you analyze specific aspects of your core business without requiring you to adapt your business to fit the confines of “off-the-shelf” software or pay for components that don’t apply to your business.

A CUSTOM APPROACH STEP 1: CREATE A LIST OF GOALS The process of creating custom software requires you take a close look at how your business operates and where improved data collection, analysis and reporting can improve your bottom line. This exercise can be useful in identifying inefficiencies, repetition, and unnecessary workflows. A first step is to identify clear goals:

CASE STUDY IN MANUFACTURING Jim owns a small manufacturing firm that employs 35 full-time employees. Because of the nature of Jim’s product, it’s more cost-effective for him to ship his own products. He is also a government contractor which means his quality control needs are more complicated than an average manufacturing facility.

Until recently, Jim kept orders in an order management database and stored quality control data in individual spreadsheets, one for each job. The scheduling of his delivery trucks was done on a paper calendar. It was time consuming for Jim’s staff to connect order information with the delivery schedule and

delivery errors were starting to frustrate customers. The monthly quality control report took several hours to compile.

Jim needed help.

After several weeks of searching, Jim found a software package that would address some of his problems, but it didn’t address the quality control issues. It also included payroll and HR functions that Jim already outsourced to a local company.

Instead of purchasing the off-the-shelf system, Jim worked with a local software company to create a solution for his needs, manage customer relationships, orders, scheduling and quality control for his

s “I want to assess the delivery times of my vendors.” s “I need to identify ways to reduce wasted materials.” s “I want our office to be paper-free by third examples of their work and leverage their skills to fit your quarter 2009.” particular needs. Make sure you see samples of their s “I need to cut in half the time it takes to enter work, talk to other businesses who have worked with an order.” them, and be sure they agree to share the source code s “I need to allow my customers to track their with you when the project is done. Some companies order online.” won’t give you access to the code which limits your s “I need ‘reorder alerts’ to help manage options for growth and forces you to continuously rely inventory.” on their services.

Before designing your new softSTEP 2: FIND A CUSTOM ware solution make sure the software SOFTWARE DEVELOPMENT TEAM development company can import your existing data.

TO WORK WITH YOU A good software designer should be able to migrate After the dot-com bust, many software develop- information trapped in Excel spreadsheets, homement firms shut down. The companies that survived grown databases or legacy systems with good planning should have proven track records, be able to show you and design.

specific business.

Quality control reports are done automatically each week, allowing him to address problems sooner.

Customer orders are tracked from placement to delivery, giving him real-time analysis of order processing.

With delivery schedules tracked more efficiently, time to delivery is reduced, customers are happier and his fleet can be maintained on a more timely basis.

With these problems solved by the new software, Jim can focus on building his business and increasing sales.

STEP 3: WORK TOGETHER TO CREATE A CUSTOM SOLUTION TO ACHIEVE EACH GOAL Once you have identified the key goals and selected a software company, work together to create a solution to address your business needs. By creating the list of goals you can build the software incrementally and enjoy the flexibility of phased development. Identify the most mission critical processes in your business and focus on addressing those needs. Perhaps you start with the customer relationship module to manage customer interactions, orders, and sales. After that is in place, start planning additional modules and schedule them at a pace that makes sense for your company.

STEP 4: BE MORE EFFICIENT AND GROW YOUR BUSINESS Once the new software is in place, you should immediately see efficiency gains. According to Jason Chance of Exetechs, a local manufacturer replaced a paper timecard system with a touch-screen time clock and online time approvals. The system reduced the time it took to enter payroll information by almost 3.5 hours per week and greatly reduced accounting errors. Another package written for a large commercial orchard identified accounting errors and incorrect invoices, more than paying for the software within the first week of use.

It used to be the case that growth required hiring more people. However, with custom software driving your business and improving efficiency, you will get more out of the resources you currently have. You will free up valuable employee time to devote to building your business, have better and faster communication across teams, reduce the amount of rework and respond better to your customers.

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Ask the Experts 2009 | vermontbiz.com

BUILDING GREEN EFFICIENTLY

BUILDING GREEN AND BUILDING FASTER UILDING GREEN BAND BUILDING FASTER

How has the construction business changed during the years you’ve been in the building industry?

In today’s competitive 21st century savvy market, it is not enough to know how to put up a building with a solid foundation, straight walls and a sound roof. That is expected. Professionalism, speed and an awareness of the environment all come into play. There are high expectations from the clients who are looking for a money saving seamless process as well as a fast build with quality work. There are many new green products and technologies available, and it is the responsibility of the builder to educate the client. The successful contractor has to wear many hats, and must communicate his abilities to potential clients who can then make wise decisions based on personal preferences.

FAST BUILD What does it mean to “fast build”?

Many people associate the construction industry with missed deadlines, broken promises, cost overruns and slow progress. The McKernon Group, Inc. has changed that construction company image for several of our clients. We can build a custom home start to finish in less time than a conventional builder, passing on the savings to our clients.

Has your company done many fast builds?

We have had opportunities to build structures successfully within very demanding time frames.

When clients are ready to build, they want to get into their new place as soon as possible. If we can offer speed along with quality, that sets us apart from our competitors. The McKernon Group has been renovating and building custom homes and small commercial buildings for years, and completing them in less time than a conventional builder.

Our recent widely publicized build was with the ABC television show “Extreme Makeover: Home Edition” where the challenge was to build a home in 106 hours. That is our fastest build so far, and we are not looking to beat it!

How can you build faster without compromising quality?

McKernon has found ways to shave time off the construction process without taking away the

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quality of the build by aggressive in-house planning, scheduling, and ordering. The idea is to speed things up and drive out the defects. Faster means less expensive, and we can pass this on to the client. The home owner is in his house sooner, and our company is able to take on more projects during the year. The McKernon Group employs many full-time skilled craftsmen. We have designers, estimators, project managers, etc., and as a result, rely less on outside subcontractors. Zeroing in on reliable suppliers who will work closely with us, gives our company the advantage of team effort with great efficiency.

What are the most important ingredients that ensure the success of a fast build?

It takes creative thinking on the part of the management team who ask the right questions from the clients so all parts and pieces are on site when needed. We provide strong on-site project management, and the support of the skilled men in the field who know how to move things faster without compromising quality.

What can you do about the unplanned inevitable delays that occur on any job because of red tape, bad weather, etc.

Many construction delays happen long before the first nail gets hammered. Professional architectural guidance and an understanding of the preliminary processes of building allow projects to begin on schedule and to evolve smoothly. Knowing the needed permits and developing a good reputation and rapport with the local towns can speed up the necessary permitting process. Everything that is preliminary makes a difference in the build. With new technology and products, the weather-related inefficiencies and waiting games can be eliminated.

For example, we now have ICF house foundations that can be installed at a time when it is convenient for the owner and builder, rather than working around our Vermont weather!

Can technology help speed up the building process?

Design development software enables clients to view the end results with accuracy, red flagging potential problems and helping to eliminate change orders. Digital photography enables the long distance client to view progress and keep tabs on their project. We’ve sometimes set up live cameras on the project so the homeowner can

Ask the Experts 2009 | vermontbiz.com

view the progress on a regular basis.

Providing our employees with the best communication tools available is vital to the progress and management of any building project. We use phone, fax, broadband internet, 2 way radios, pagers and cell phones. We are able to have instant communication between clients, architects, project managers, field crews and suppliers.

BUILDING GREEN How can you tell one “green” construction company from another?

This is an overused term and “building green” has become a popular way to gain favor with conscientious clients that are looking to preserve the environment and cut fossil fuel costs. It is extremely important to be informed and to differentiate between those construction companies that make a few choices in that direction verses those that are truly committed to building responsibly with green technology and energy efficiency. Promoting is one thing, but actually carrying it out is another.

If you are aware of our company, you know that building green has always been a part of our building philosophy, long before energy prices skyrocketed, and the general public was aware of the harmful effects of fossil fuels. Most of the houses we build are energy star rated. We are constantly trying and testing products, and we know that we are making a difference in Vermont and NY by building with green products and techniques.

What is your company philosophy about building green?

In everything we do we try to live within the environment. We use the most energy-conserving products that make sense economically. I recommend situating the house for the best use of natural resources, energy efficient methods and water conservation. It is an approach we strongly recommend to all of our clients from both an efficiency and economic standpoint. We look at a house as an entire system with the goal of making the different parts work together to gain the most efficiency possible. Our ratings in energy efficiency come from design, construction, sys-

tems and products.

How do you decide which products and green building techniques to recommend?

Our staff is very aware of the products that are available through research and education. They share their ideas both formally and informally.

Lunch can be just as effective as official meetings.

They review the new green products and building methods that are emerging all the time, and incorporate them into our standard practices. Each build is different, every site is different and every set of circumstances is different. We work to find the best combination in each case. We have developed a McKernon “Green Brochure” which showcases several products that we’ve tried and have proven to be successful. This includes spray insulation, ICF foundations, wind turbines, electric thermal storage heaters, geothermal systems insulating shades, solar electric and hot water, thermal windows, recycled roofing materials and reclaimed wood. We first used ICFs on our own project in 1999 and have since been leaders in the use of foam forms that hold the concrete in place and serve as insulation for the foundation and walls of a building.

Why do you think you were chosen for the Extreme Makeover: Home Addition” build and why did you choose green products?

We like to think that we were chosen because of our reputation for fine building and our commitment to community. We do a good job with project management, and we have the skill and enthusiasm of our employees who support the challenges that we undertake. Our track record indicated that we could pull off this race against time in the required 106 hours, with successful results.

In terms of building “green”, this was our own stipulation. We wanted something practical for this family and chose to build the house as tight as we could. We are happy for this VT family, proud of their home and the Five Star Energy Rating. We believe the project represents Vermont as well as all that our company stands for.

EMPLOYEE WORKPLACE CULTURE

Creating a Culture of Safety

by Dan Cote, Senior Vice President, Loss Control and Safety

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or decades, workplace safety professionals have advised employers to “engineer out” risks to employees.

Have a machine with exposed moving parts? Put a guard on it. Does a job task require awkward lifting and twisting? Change the working environment to eliminate the lift and twist. Is the job physically difficult? Find an automated solution.

All of these valid and logical methods for reducing injuries have been underway for decades. And, yet, people get injured at work every day. Sure, there are fewer injuries and many of them are less severe but we still haven’t come close to solving root causes of workplace injuries.

It was none other than Albert Einstein who said: The problems we face today cannot be solved by the same level of thinking we were at when we created them.”

And, of course, that famous definition of insanity (doing the same thing over and over while expecting a different result) seems to be a mantra of many a workplace.

The truth is, engineering as it’s been known to safety professionals over the years has its limits. Today, study after study is finding that the way to a safer workplace is by integrating business and safety goals toward a congruent culture of safe productive work.

Not only does this culture help reduce injuries today, it creates sustainable change for the future.

The term “culture” often gets thrown around these days but what does it really mean? Better yet, can a culture really be created?

WORKPLACE C O

F

WHAT IS A SAFETY CULTURE?

HOW IS A SAFETY CULTURE CREATED? The culture component offers the greatest opportunity to reduce injuries and helps all of the other pieces to come together. Such a process requires a strategic plan as well as a means of measuring the spectrum of high achievements to lackluster performance. All too often the following phrases are used to justify the concept of improving safety efforts. We hear leaders say, “The safety of our people is paramount.” or “A safe workplace is a productive workplace.”

Although statements like these may be true, they do not produce tangible points of reference, such as a benchmark. They are easily treated as slogans, only to be forgotten.

As with any good business initiative, to know where you’re going, you need to know where you are. Start by benchmarking the organizational values, measuring your culture to find out where you stand and whether perceptions are shared across departments, shifts or at all levels.

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Ask the Experts 2009 | vermontbiz.com

N E AL MANAGEM

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The culture of a workplace (or of any place) is its unspoken characteristics.

Anthropologists might define culture as “the sum total of ways of living built up by a group of human beings and transmitted from one generation to another.” Workplaces are the same. Beliefs, values and ultimately behaviors are all part of culture. In a workplace culture includes how an organization goes about its work. How information passes from one level to the next How the organization handles stress such as busy times, or slowdowns. How does it reward employees? All of these and more make up a workplace culture.

Successful companies with strong cultures integrate safety with business goals. This balance makes certain that it permeates all parts of the organization, then safety, productivity, and quality should congruently mature in the same cultural direction.

A culture of safety means that each worker understands that the organization’s attitude and outlook inherently value safety. A culture is the shared sense of responsibility by each member of a team toward the whole. It requires an engaged management that will not shy away from benchmarking its values, measuring itself against those values, then setting strategic action steps to attain continuous improvement.

A good survey of an organization should find out where it stands on its commitment, balance between safety and productivity, integrity, responsibility, and visibility of safety, among others.

These results give you a starting point toward a safer culture.

From here, it’s a matter of choosing and delivering on the culture you want to create.

You’ll need buy-in from all levels but this often starts with senior management. Once in place, you’re ready to create programs and take steps toward a healthier, safer and more productive workplace culture.

SOCIALLY RESPONSIBLE INVESTMENTS

Socially Responsible Investing An Essential Element of a Diversified Portfolio T

here was a time, not too long ago, that if you wanted to clear a room all you had to do was strike up a discussion about socially responsible investing. “Isn’t that for bunny huggers?” Or, “don’t you have to forfeit performance?” The answer to both questions is a resounding NO. Whether you call it socially responsible investing (SRI), sustainable or green investing, one thing is for certain, it is growing faster than any other investment strategy and is expanding into the mainstream investment community. This article will help you navigate the ever-expanding sustainable and socially responsible investing landscape.

WHAT IS SOCIALLY RESPONSIBLE INVESTING (SRI)?

SRI helps investors minimize investment risk by incorporating environmental, social and corporate governance performance criteria into their investment decisions. There are three main building blocks of SRI: Investment screening Shareholder advocacy Community citizenship The screening process helps investment managers include securities in portfolios that meet specific fundamental and environmental, social and corporate governance criteria (ESG). Many fund managers apply both exclusionary and qualitative screens.

Exclusionary screens may eliminate companies that produce alcohol, tobacco, firearms and weapons of war; while qualitative screens seek to identify companies with positive business practices. These might include strong environmental or labor management policies and procedures; limited exposure to or instances of legal actions; companies with diverse management teams and positive reputations and ties in the communities where they operate.

Shareholder advocacy involves encouraging companies to improve corporate, social and environmental business practices.

Since there are no perfect companies, getting companies to change their business practices can take years. Engaging companies in a dialogue is often the staring point. If discussions stall or if a company is resistant to change, shareholders can file a proposal to be added to the proxy statement and have the issue brought to a vote during the annual meeting of shareholders.

This has become a widely used tool by SRI firms and institutional investors like state pension funds.

Some of the issues most frequently covered in shareholder proposals include: Requesting companies issue a sustainability report that address the potential business risks and opportunities posed by climate change.

Asking companies to disclose details on corporate political and non-profit contributions.

Seeking companies that discontinue using toxic ingredients in consumer products.

Community citizenship includes supporting development initiatives in low-income and underserved communities and/or developing countries. Access to capital is achieved through basic banking products like CDs, community credit unions, development foundations, community loan funds and micro-enterprise lenders.

THE SRI MARKET The market is expanding and the demand for SRI products is growing. According to the Social Investment Forum1, SRI investment assets have grown much faster than investment assets as a whole for more than a decade. Since 1995, the first year the organization began tracking socially screened investments, sustainable investing assets rose more than 324 percent from $639 billion to $2.71 trillion in 2007. Assets increased more than 18 percent versus a growth rate of less than 3 percent for the broader universe between 2005 and 2007. Today about one out of every nine dollars under professional management in the

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United States today is involved in socially responsible investing.

SRI is no longer a niche investment strategy. It has become an essential element for investors seeking to have a more broadly diversified portfolio, where a portion of their assets is invested in alignment with their individual values. Today’s socially responsible investors include individuals, state pension plans, universities, corporate retirement plan providers, churches, foundations and family trusts. Investors want to invest in companies whose operations they support, to influence companies that need to change and to help invigorate local communities. This is driving tremendous growth in the SRI market. Even President-elect Barack Obama and his wife have a portion of their portfolio invested in a socially responsible index fund. They made the switch when they learned that one of the funds they were invested in held the stock of a company that did business in Sudan, where genocide has taken the lives of millions.

The analysis and research that goes into SRI investments has made it possible for investors to incorporate their personal

A WIDE RANGE OF FUNDS

values, environmental and social concerns into their investment decisions, while serving as a source of competitive performance potential and enhanced risk management for their investment portfolios.

also can do some of your own research in advance to help make discussions with an advisor more productive.

As is the case with all investment decisions, be sure to read the prospectus carefully of any fund you are considering. It will provide very important information including the investment strategy, the investment risks, how to open and manage your account, as well as any fees and expenses,

FUND PERFORMANCE One of the most popular and long held myths is that investing in a sustainable or SRI strategy means sacrificing investment returns. A number of studies have been published that show a correlation exists between shareholder value and strong environmental, social and corporate governance performance.

For example, in the 2003 study Corporate Social and Financial Performance: A Meta-analysis, Marc Orlitzky, Frank L. Schmidt and Sara L. Rynes make three key points: “Theoretically, portraying managers’ choices with respect to Corporate Social Performance (CSP) and Corporate Financial Performance (CFP) as an either/or trade-off is not justified in light of 30 years of empirical data.”

“This meta-analysis has shown that (1) across studies, CSP is positively correlated with CFP, (2) the relationship tends to be bidirectional and simultaneous, (3) reputation appears to be an important mediator of the relationship, and (4) stakeholder mismatching, sampling error, and measurement error can explain between 15 percent and 100 percent of the cross-study variation in various subsets of CSP–CFP correlations.”

Corporate virtue in the form of social and, to a lesser extent, environmental responsibility is rewarding in more ways than one.

Another indicator supporting the position that you need not forfeit investment returns is the mainstreaming of sustainable or SRI strategies and investment research. In 2006, Derwall, Jeroen, and Kees Koedijk from Erasmus University in the Netherlands, noted in their working paper Socially Responsible Fixed-Income Funds, that “Goldman Sachs, UBS, Merrill Lynch, and the World Economic Forum, have joined with long-standing social investing firms in acknowledging the impact that environmental issues and corporate social responsibility can have on businesses in which they invest.”

Ask the Experts 2009 | vermontbiz.com

There are over 260 SRI funds available. The selection is diverse and includes domestic equity, international and global funds; large-cap, mid- and small-cap funds; index and fixed income funds, and ETFs. You also will find specialty funds, for instance, that only hold securities of renewable energy companies, or that only serve as community investing funds. Whatever your investment interests are, a sustainable or socially responsible fund to meet your needs probably exists.

GETTING STARTED Now that you have a better understanding of sustainable and socially responsible investing, adding the strategy to your portfolio should not be a daunting task. First, you may want to consider seeking assistance from an experienced financial advisor. He or she will have access to lots of information and research that can help inform your investment decisions. You

ABOUT SENTINEL INVESTMENTS For 75 years, Sentinel Investments has offered the sound, prudently managed strategies that are the foundation of any portfolio. We deliver a range of investment solutions managed by focused, dedicated teams of specialists. Though our teams have varying philosophies, they share our firm’s most basic values: a commitment to bottom-up, fundamental research; a desire for competitive returns during strong market environments and superior relative performance in down markets; and a commitment to results measured in years, rather than days, weeks or months. Dedicated teams, repeatable disciplines and a commitment to sustainable performance – at Sentinel, these are the essential elements of investing.

The Social Investment Forum is the national membership association dedicated to advancing the concept, practice, and growth of socially and environmentally responsible investing.

Data provided was sourced from the Forum’s 2007 Report on Socially Responsible Investing Trends in the Untied States.

WORKPLACE SAFETY AND WORKERS COMP

A Workplace Safety Mantra

by Patricia Moulton Powden, Commissioner, Vermont Department of Labor

FACT SHEET FOR EMPLOYERS

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orkers’ compensation insurance is mandatory for all Vermont employers. Most employers are aware of their coverage obligations and they know that it provides an injured worker with certain benefits. This fact sheet is intended to answer common employer questions and to provide information about the workers' compensation process, dispute resolution and other facts of interest. > Workers' compensation law is intended to provide for employees a speedy, no-fault remedy and for employers liability which is limited and determinate. > An injured worker may be entitled to one or more of these specific benefits: Medical care/ treatment that is reasonable and necessary to treat injury; Lost time if disabled due to work injury; roughly 2/3 of usual work wages; Permanent impairment only if injury results in permanent (MCMs) to assist in the development and impleimpairment; per AMA Guides to the Evaluation of mentation of a medical care plan for the injured Permanent Impairment Vocational rehabilitation employee. if unable to return to suitable employment; Death > Workers’ compensation insurance coverbenefits if evidence supports the death arose due age may be a large expense for an employer. The to work injury. best way to keep insurance premiums down is to > A work injury is an injury that arises out of develop and maintain a good safety record. and in the course of employment. > Employers must report all work injuries that WORKERS’ COMPENSATION result in either any medical attention or one lost INSURANCE – HOW IS IT FIGURED? day of work or more.

The workers’ compensation insurance premium > The insurance adjuster is responsible for is calculated by using a formula comprised of denying and adjusting the claim. payroll data, risk classification, and company (not > The employee has the burden of proving industry) experience to determine a “mod” rate. that they suffered a work injury. > Payroll is the total amount paid to workers. > A common dispute arises when an employee > Risk classification is what reflects how hazhas suffered a work injury in the past and now ardous an industry is – there are more than 600 suffers either an acceleration or exacerbation of an industry classifications. old injury or the return of symptoms following a > Experience is based on a company’s claim temporary remission. This is called an aggravation/ recurrence dispute. Either the employer/carrier from (primarily loss-time claims) experience. > Regardless of hazard classification, every the old injury or the current employer/carrier are company starts with a mod rate of 1, which is then responsible. adjusted down for good experience (filing only a > Once a claim is accepted by the insurance few injury claims) or up for bad experience (filing carrier, specific benefits may still be denied.. many injury claims). > In Vermont, the carrier may stop paying lost time benefits when the employee reaches medical end result, that is, when the employee has reached TIPS FOR A SUCCESSFUL INJURY PREVENTION PROGRAM a plateau in their recovery such that significant further improvement is not expected, regardless of 1. Keep “safety” visible and make it a core treatment. value at your business. > The insurance carrier may request that the 2. Talk about “safety” regularly. employee undergo an independent medical exami3. Employees need to know that working nation (IME). safely is as important as production deadlines. > The employees return to work is a logical 4. Supervisors and managers, by example, and desirable goal in workers' compensation. should ensure a safe workplace. > The employer is required by law to reinstate 5. Employees need to know the company cares the employee if s/he recovers within two years of about them and wants them to work safely. being disabled.

6. There should be no mixed messages on > When a work injury results in permanent “safety.” impairment, the employee is entitled to compensa7. Encourage employees to report any unsafe tion for that impairment, as rated by a medical conditions, no matter how small. provider.

8. Make sure the safety problems are corrected > By law, an employee with specific identified or addressed immediately. injuries (such as the loss of both hands) is entitled 9. If it can’t be fixed, tell the employees why. to permanent total disability (PTD) benefits.

10. Employees need to know they must report > Not all work injuries are covered under any injury to a supervisor as soon as possible. workers' compensation.

11. “Near misses” are very important to know > Employers may perform drug testing of to prevent possible injuries. employees and/or of applicants only under specific 12. Employees need not fear recrimination for conditions. reporting injuries or unsafe conditions. > Over recent years insurance carriers have 13. Understand that VOSHA regulations are increased their use of medical case managers only a minimum standard for safety.

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Ask the Experts 2009 | vermontbiz.com

14. Managers should praise employees safe work practices.

15. Include safe workplace practices in job descriptions and employee reviews.

16. Poor management leadership is one of the primary causes of workplace accidents.

SAFETY MANTRA 1) Be Involved: Everyone must be involved in the development and implementation of that plan. Management and labor must work together to succeed.

2) Be Pro-active: Employers need to commit to improving the company’s health and safety record.

Inform your employees that eliminating hazards and reducing injuries is a top priority.

3) Work together with your workers: Employees can help identify existing and/or potential hazards. They can help pay particular attention to those injuries most prevalent in your workplace and your industry. Employers should ask their employees, and the workers should ask their employers for help and assistance in workplace safety. Everyone is in this together.

4) Educate employees about workplace safety and workers’ compensation: Help your employees understand the link between workplace safety and workers’ compensation. It is important that your workers understand that a high number of workers’ compensation claims can lead to significantly higher costs for workers’ compensation insurance, which can impact profits, wages, and even the size of your workforce. A good safety record gives your business a competitive advantage, which is good for both employers and employees.

5) Learn from your experiences – good and bad: After a workplace injury has occurred, employers should make sure the hazard or the behavior that caused the injury is corrected. They should explore ways to prevent such workplace incidents from happening again. They can also review how they managed the claim so that they can learn about what needs improvement.

6) Don’t hesitate to ask for help: Many industry groups offer safety programs. Your workers’ compensation insurer can also help identify areas that need improvement. And we are here to help as well. Visit the Vermont Department of Labor website (www.labor.vermont.gov) for Project WorkSAFE, Project RoadSafe, or VOSHA’s Compliance Assistance Specialist. We are in this together to insure that everyone succeeds – busi-

nesses and their employees.

Over the past few years, many bills have been introduced in the Legislature to help relieve some of the high costs of workers' compensation. True workers’ compensation reform will require much more than a single bill to change certain laws.

True workers’ compensation reform is an ongoing process. While we may need to change some laws, and perhaps some rules, the Vermont business community -- every employer and employee should embrace the attitude that workplace safety is a top priority. We must create a culture of safety, not just in each individual workplace, but also in state government, and in the hearts and minds of every single Vermonter.

(The Vermont Department of Labor is the only department in state government that has a direct face to face relationship with both employees and employers. The Workers’ Compensation and Safety Division, the Unemployment Insurance & Wage Division, and the Workforce Development Division, each provide services directly to the Vermont business community and its workforce.)

WHAT EVERY EMPLOYER NEEDS TO KNOW ABOUT ROAD-WAY SAFETY Every Vermont employer has a crucial role to play in increasing the use of seat-belts in motor vehicles.

Government sources report that traffic crashes are the number one cause of death in the workplace. It is also documented that well more than half (62%) of everyone killed in a motor vehicle crash was not wearing a seatbelt at the time of the crash. In addition to the immense personal tragedy suffered by employees and their families, eachon-the-job crash can cost employers thousands of dollars. These costs reflect payments for medical care, workers' compensation rates, property damage, lost productivity, substitute labor, replacement transportation, delays in shipment of products, and third party damage and injury.

Employers need to know there is a direct connection between workers' compensation and roadway safety and that privately-owned vehicles have joined company-owned fleets as mobile workplaces. Employers also need to know that motor vehicle crashes are among the largest contributors to workers' compensation losses. Here in Vermont, according to statistics from 2007, there were 213 injuries from on-the-job motor vehicle crashes.

These crashes (@$73,750*/crash) cost $15.7 million. The private insurers paid out $7.85 million; the victims paid $3.9 million; third part cost was $2.4 million and the cost to Vermont taxpayers was $1.6 million.

Since our highways are considered, in some circles, as a “workplace,” businesses may have to become more influential in the decision-making process to make road-ways and motor vehicles safer. Businesses are required by law to provide a safe workplace for their employees. Enforced company policies concerning the use of safety devices in the workplace are essential to a company’s stance in a workers' compensation case.

It really is true that “safety is profitable.”

Reduce Risk – Reduce Cost IN YOUR WORKPLACE Whether your workplace is on a construction site, in a building or on the road — SAFETY ALWAYS WORKS FOR YOU! 802-828-4000 www.labor.vermont.gov

Alcohol & Drugs are life-threatening in the workplace Drinking and driving doesn’t only wreck cars. After one drink, we take much longer between seeing a problem and reacting to it. With vehicles traveling at 60 feet per second, fractions of a second in reaction time can make all the difference between death, injury or no injuries. How must it feel to lose a loved one either because they have been drinking and driving, or because they fell victim to a driver who just has “one-for-the-road�?

VOSHA

(Vermont Occupational Safety & Health Administration)

What you need to know t 8IP JT DPWFSFE CZ 704)" "MM FNQMPZFST UIBU have employees. t %P * OFFE B NJOJNVN OVNCFS PG FNQMPZFFT CFGPSF 704)" IBT KVSJTEJDUJPO *O NPTU DBTFT UIFSF JT OP NJOJNVN OVNCFS of employees (there is a minimum of ten in agriculture and certain non-hazardous industries. t *G 704)" GJOET B WJPMBUJPO JO NZ XPSLQMBDF XJMM UIFSF CF QFOBMUJFT *G UIF JOTQFDUPS GJOET TFSJPVT WJPMBUJPOT UIFSF DBO be a penalty of up to $7,000 for each violation. t $BO * BQQFBM UIF DJUBUJPOT :PV DBO BQQFBM UP 704)" BOE request an informal conference or you may appeal directly to UIF 704)" 3FWJFX #PBSE *O FJUIFS DBTF UIJT NVTU CF EPOF within 20 calendar days of your receipt of the citation. t .VTU * DPSSFDU BMM WJPMBUJPOT :FT BOE OPUJGZ 704)" JO XSJUing with proof that you have done so. t *T UIFSF IFMQ BWBJMBCMF GPS JEFOUJGZJOH BOE DPSSFDUJOH XPSLQMBDF IB[BSET BOE FNQMPZFF USBJOJOH :FT $BMM 4"'& :&4 PS HP UP XXX MBCPS WFSNPOU HPW BOE DMJDL PO 1SPKFDU 8PSL4"'& $POTVMUBUJPO 7JTJU 3FRVFTU GPSN Go to this website for other workplace safety information.

REDUCING COSTS IN A COMPRESSED AIR SYSTEM

How to Save Energy in a Compressed Air System S

o, you have an air compressor. It’s somewhere in the back of your facility and you hear it humming away, keeping your operation productive and profitable. You researched and found the most efficient compressor for the money, low in maintenance costs, virtually trouble-free. You think everything is fine.

Think again! The compressor is only one of many elements in your compressed air system. There are pipes, pipe joints, receivers (tanks), pneumatic cylinders, blow off applications, filters, regulators, lubricators, automatic drains just to name a few, and all of them can lead to a system that is inefficient and expensive to operate even when you have the most efficient air compressor on the market.

Here are some steps you can take to reduce the cost of operating a compressed air system.

FIX LEAKS When you consider that an orifice 1/8 diameter in a pressurized system at 150psi consumes about 10 horsepower-worth of air, you can quickly see where leaks can be expensive. How expensive? This 1/8 hole, left uncorrected, will cost you $8,736.00 annually based on current average energy costs in Vermont. (8,736 hours @ $0.11 KWH, NEMA B Motor). So, why don’t people get concerned over air leaks?

Air is odorless, colorless, and doesn’t leak a puddle on the floor, so they are ignored, at least until your compressor can’t keep up with the air demand (air used in operation and leaks).

Take this 1/8 hole again, and reduce the system pressure to 90psi and your loss of air is reduced to just over 5 horsepower-worth of air. This alone is a cost reduction of $4,192.00 per year, just by reducing your system pressure. You are still better off to fix the leak, but leaks happen any time and when they do, you will loose less air with reduced system pressures. Most pneumatic operations will run quite well with 90-100psi air pressure. In fact, lowering plant pressure reduces leak demand AND production equipment demand which is part of the artificial demand shown in the pie chart above. So, why don’t people lower their system pressure? Because they have one or two pieces of equipment that require the higher pressure, so they run all their equipment and leaks at the highest pressure required.

INSTALL PRESSURE DIFFERENTIAL STORAGE If you have a pneumatic operation that requires a large volume of air but only intermittently, it is best to have your air compressor build up pressure higher than the demand pressure in a large receiver (tank) and then regulate the air pressure out at the lower plant pressure. This difference in pressure builds storage in the air receiver that can be used when the large intermittent demand is activated. This is a way of isolating a large demand that might otherwise drain your entire air system and cause performance issues at other points in your facility.

Depending on your specific circumstances, it could save you from buying a larger compressor. (See figure 1)

CONVERT YOUR PARTIAL LOAD CONTROL METHOD

Cubic Feet of Air delivered

After all the above items have been considered and implemented, you then should assess how your air compressor adjusts to fluc-

tuating demand in your air system. Some part load controls are more efficient than others, and some compressors at part load consume almost 90% of the power at as low as 40% air output. You should contact your compressor provider to evaluate whether different controls, multiple compressor system or a variable speed drive compressor bests suits your situation.

WHERE DO I START? Some of the tools to help you evaluate your air system should be available from your air compressor provider. Some are offered on a fee basis. They include: s Ultrasonic Leak Detection (Fee-Based) ~ with a comprehensive reporting system that helps you prioritize the leaks and help you evaluate the potential cost savings. s Data Logging (Fee-Based) ~ with a comprehensive reporting system that helps identify time-of-day demands and recommends the best partial load control and/or compressor set up. This will also help identify unusual demands that would reveal the need for Pressure Differential Storage. (See figure 2) There are many partners that you can draw on to help you with a project such as this. s Efficiency Vermont ~ a valuable partner in the evaluation of your air system. They make it their mission to assist you in reducing your energy costs and have experienced staff to counsel you in your decision-making process. They can be reached @ 888-921-5990. s Local Compressor Supplier ~ a knowledgeable and dedicated supplier representing your interest to reduce operating costs will have many of the tools mentioned above to recommend the best compressor system to achieve maximum efficiency. This may mean even reducing the size of your compressor after the implementation of all of the other efficiency improvements mentioned above. A full-service, local Industrial Supplier will have many MRO products to help you repair leaks. When

Pull from Storage during peak demands

Figure 1

demand greater than supply demand less than supply

Fill Storage During Dwell

Time (minutes)

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Ask the Experts 2009 | vermontbiz.com

Total On-Line Compressor Capacity

LOWER SYSTEM PRESSURE AND REDUCE ARTIFICIAL DEMAND

choosing to “partner” with such a supplier you should look at their track record with other companies, their service department reliability, and the manufacturers they represent. A full-service, local Industrial Supplier will also have an interest in maximizing your overall bottom line with other manufacturing efficiency systems and processes, such as Vendor Managed Inventory, Lean Manufacturing. s Compressor Manufacturer Representatives ~ a reputable manufacturer with quality technical representatives who will assist in compressor selection and system improvements. They will have the same interest in achieving your goals as your local Compressor Supplier and will have a good working relationship with that Supplier.

So if you have read this far you may now be convinced that you can make improvements to your compressed air system that will save you money. Vermont has always been a leader in energy efficiency because frugality is in our roots – it’s a part of the Vermont history and landscape and one of the hallmarks of the Vermont mystique. When considering improving the efficiency of your compressed air system, not only are you taking steps to improved profitability, but also you are helping us all in Vermont and the United States to reduce our dependence on nonrenewable energy sources and our carbon footprint.

Figure 2

It’s the compressor for today, tomorrow, and the future.

When you have fluctuating demand, your compressor of choice is the Sullair S-energy VSD - a low-maintenance, efficient unit that can deliver high quality air at the lowest possible operating cost. Remember that your compressor purchase cost is only a small part of your total operating costs over 10years.

10-YEAR OPERATING COSTS

It is our commitment to help you make your compressed air delivery system the most efficient to fit your budget. If we can achieve this by reducing your air consumption though air-leak detection, point of use storage, artificial demand reduction or even convincing you to modify habits, we have done our job.

Let Reynolds and Son be your partner in achieving some substantial savings. Please give me a call to schedule a site visit and free consultation.

Bruce Seel, President.

800-639-2901

Winner

2008 SBA Jeffrey Butland Family-Owned Business Of The Year

47 Bridge Street So. Barre, VT 05670

www.reynoldsandson.com

Part of the Vermont landscape since 1874

THE POWER OF BRANDING

Are you promoting your company brand at every opportunity?

T

here’s more to your company’s brand than your logo, but it’s a start. Your company brand should create a positive first impression and never stop impressing customers. As an example, it’s important to strive for consistency. When you visit Starbuck’s, you always know what to expect… good coffee in a welcoming, friendly environment for a premium price.

“Your staff is your front line when it comes to brand image.”

YOU MUST ASK YOURSELF IF YOUR COMPANY IS LIVING UP TO ITS BRAND PERSONALITY EVERY DAY… Are your staff members dependable, trustworthy, smart and helpful?

That means ALL of your staff. Does your office team understand what it takes to effectively build the company brand? You and your team should be living the brand daily (See Branding Check List).

Branding Check List

Brand Personality is made up of the attributes you want customers to remember when your company name comes to mind.

Here are some suggestions of brand personality attributes: Creative (innovative) Dependable (consistent, reliable) Trustworthy (credible)

Smart (knowledgeable, intelligent) Helpful (supportive)

INCREASE CUSTOMER RETENTION AND BOOST EMPLOYEE MORALE Branded appreciation gifts will effectively keep your company name in front of customers and employees. With thousands of creative promotional products, one of them is certain to leave a lasting reminder of your products and services. Logo apparel, branded portfolios and personalized keepsakes also make great recognition gifts for employees.

YOU REPRESENT YOUR COMPANY EVERYDAY— DON’T’ MISS AN OPPORTUNITY! Consistently applying your company’s graphic standards, wearing company-branded apparel with your most current logo, using consistent business cards, letterhead and envelopes, and promoting your company name with all the promotional items you can afford will ensure that you’re creating awareness within the marketplace you’re trying to reach.

HOW TO WALK THE WALK… TALK THE TALK Tomorrow: Commit to your company brand today. Discuss these concepts with your team. Promote your company with all the marketing tools available to you to communicate effectively.

Everything from full-color brochures, promotional products and apparel can be branded… and should be!

Within 30 days: Update your marketing materials. Make sure your logo and company colors are featured prominently. Find a reputable printer with marketing expertise to help you create a consistent image.

Within 60 days: “Brand” your office, your reps/staff, your clothes, and your attitude!

Within 90 days: Evaluate yourself and your team on how well you communicate your brand personality now.

Situations pop up daily in which you can strengthen or weaken your brand. It’s up to you to take every opportunity to strengthen your brand using the Branding Check List. Everyone in the company must be held accountable for upholding its brand promise.

26

s !M ) WEARING COMPANY BRANDED business apparel every day? s !M ) USING OLD LETTERHEAD BUSINESS cards or sales collateral? Or, are my letterhead, business cards and brochures in compliance with the latest company standards? s !RE MY WRITTEN COMMUNICATIONS professional and consistent?

A COMPLETE, WELL THOUGHT-OUT MARKETING PLAN MAKES EFFECTIVE EXECUTIONS EASIER

s (AVE ) FULLY EMBRACED THE COMPANY brand and adopted logo standards launched most recently?

Reinforcing your brand on a regular basis is a challenge. When you understand the elements that must come together to create effective marketing, you can follow the steps to achieving greater awareness and increased sales.

s !M ) USING DIRECT MARKETING PROGRAMS as a constant customer reminder?

Do you think Lexus ever takes a break from thier marketing brand and creating awareness?

WHY SHOULD YOU CARE ABOUT BRANDING?

s 7HEN ) ANSWER THE PHONE AM ) HELPFUL

dependable and creative, and do I mention my company’s name throughout the conversation?

THE FIRST STEP If you don’t have a company logo, working with a reputable company to help you develop one is your first step toward establishing brand equity. A business partner like Safeguard of Vermont & New Hampshire can help guide you through the steps to creating a more meaningful, impactful brand.

Ask the Experts 2009 | vermontbiz.com

s $O CUSTOMERS TRUST MY COMPANY AND have confidence in my abilities as a provider?

DATA NETWORKING

Data Networking for Business

by William Daugherty

W

hile it is still possible to run a business with a few computers connected loosely on a peer network, increasingly smaller firms are finding the inclusion of a server to be a very cost-effective and powerful solution to their data management problems. The end result desired to help them achieve their core goals, better communications and success in the marketplace.

Ten years ago businesses with less than 10 employees rarely had any kind of server in their environments. Companies seldom hosted their own email and application servers (accounting, GIS and various other database-driven apps) were only found in large environments where the large number of users could justify the expense of these

costly systems. Over time the cost of the server hardware has come down dramatically. Also the ease of implementation has increased making it affordable for even businesses with just a few employees to leverage the many benefits of server-based networks.

One significant benefit of having a server is the fact that a firm can invest in a well-engineered, robust platform than can easily outlast the typical desktop computer even running 24/7. Most current servers include optional Redundant Disk Arrays (RAID) that allow for one or more individual disks in the set to fail and still continue to function. This allows time for the failed drive to be replaced with a new drive. The server then rebuilds the array in the background. All this takes place while the server is still functioning and most times users are unaware anything has happened.

Now that we have this robust core for the

28

network it is a natural step to not only store all critical data on it but to also let the server manage key functions such as user authentication, security, antivirus, spam filtering and of course backup.

Most of the major publishers of antivirus software have versions that are designed to run on both server and workstation. This allows the server to manage the download of new virus definitions rather than having each client going to the Internet for the same files. The server can also enforce policies requiring current definitions so that individual machines/users cannot circumvent the update process thereby putting everyone at risk. The same is true of spam and malware filtering of email. It is much simpler to have the server perform these steps than to require each workstation to do so.

Of course database applications have for many years run in client/server mode

allowing the server to perform much of the intensive disk input/output and even some of the number crunching of large data sets. This allows the workstation to handle the presentation of much of the business logic while still storing the actual data on that robust platform we keep discussing.

Finally, making backups is a key function of most modern servers.

Using a large tape drive and/or external hard disks is still the most common means of getting data onto secondary media. Both media types have their advantages. Tapes are relatively inexpensive and can be removed from the drive and either stored in a fire safe or taken off premises entirely. External drives have the advantage of speed but are usually not taken offsite as often if at all. Also they are much more expensive per megabyte.

A new means of backup has arisen in the last few years: offsite backup using the Internet as the transport medium. This of course is by definition offsite and is only limited by the service provider’s skill, resources and imagination. The downside is expense per megabyte and the time for backing up and restoring due to the relatively slow transfer rate. Most of the Internet backup providers use a delta-only model wherein after the initial backup is done (sometimes taking several days, depending on the amount of data) the following backups are highly optimized transfers of only the actual bits that have changed since the last backup. This means that rather than sending an entire file, only the part(s) that changed are sent. Many firms use Internet backup as an adjunct to the more traditional methods mentioned above.

Are servers right for every business? Probably not. Are they right for many small firms who wouldn’t have considered it in years past? Definitely.

William Daugherty is a Solutions Architect and Engineering Manager for Systems Plus Computers, Inc. in Lebanon and Hanover New Hampshire. Systems Plus has been in the IT business for over 20 years.

Ask the Experts 2009 | vermontbiz.com

One significant benefit of having a server is the fact that a firm can invest in a well-engineered, robust platform than can easily outlast the typical desktop computer even running 24/7.

FINANCIAL LITERACY

Financial Literacy Why versus What

by Randall S. Raner

O

n Thursday, November 27th, America gave pause from the financial events that occupied us and gave thanks; not for the health of our economy, nor the wisdom of our leaders. We gave thanks for the fabric of our lives. The values we have entrusted to our children and the hope that we see in the simple truths in life. America paused from their growing distrust of financial institutions, the media pundits who babble on 24 hour news stations in their relentless pursuit of ratings and from the political meandering of a $700 billion bailout package. On this day of Thanksgiving, Americans gathered to remind themselves that America is the greatest country on earth; that the line to get in has always been longer than the line to get out. This is not a prediction or prognostication, this is fact.

How does this relate to financial literacy? Values and behavior are paramount to financial literacy, awareness and planning. Values, behaviors and beliefs are at the core of active decision making. There can be no doubt that our current financial crisis resulted from a departure from those values and a lack of leadership within our financial system. So, how did we get here and how do we behave ourselves to financial freedom?

A historical perspective is necessary.

Let’s begin with the internet. Access to readily available information shifted the balance of power away from financial institutions into the hands of the consumers of financial products. This shift caused institutions to commoditize products and services. Financial institutions, prior to the internet, controlled the information flow. They decided what information was delivered, when, and through what portal of distribution; banks, brokers or insurance companies. As the consumer gained unfettered access to information, they no longer relied solely on these distribution portals.

They began to educate themselves. This created a massive “to do” for financial institutions; they had to retool from disseminating financial information to deciphering the mass of information that clients brought to the portals. Financial companies had a choice: 1) compete on price, return and the efficiency of a product (the “we are better” approach) or 2) compete on value, services and understanding the customer (the differentiation approach).

The “better” approach guarantees product obsolescence; price becomes the consumer’s primary buying motive. This process will not stop until corporate profitability is adversely affected, the law of diminishing marginal utility. The sale of the product is no longer profitable to the manufacturer. Better has a place in assessing financial viability of institutions, but I do not believe that a better price should dominate the financial literacy process. Want some proof? There has never been more institutions, products or platforms to put money into; thousands of mutual funds, hedge funds, stocks, bonds, and no less than ten 24 hour a day financial programs educating us on product

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and, yet, it is commonly known how abysmal the savings rate is in this Country. We do not need better priced products or options. We need to understand our behaviors around our money. The “why” we buy.

In my opinion, the “value” approach is the more appropriate option. This approach requires a deep understanding of what the client is hoping to accomplish with their

Mass No Boundaries™” 3) We promote process and how we interact with clients instead of the generic product approach. The “Critical Mass No Boundaries™” process seeks to provide clients with a consistent quality financial experience with predictable outcomes. We firmly believe that our clients work with us because of the “experience” they receive and our depth of understanding

cial institutions will deliver value to the consumer. Firms that “go green” with their values, philosophies and mission position themselves to help the greatest amount of people. We believe that there are certain financial decisions that come first and that these decisions have a logical progression toward financial freedom. Our process allows us to communicate the progression clearly and concisely.

Financial literacy is about knowing “why” you own a financial product, not about the features of the product. The purpose of owning a car is universal; transportation.

The reason why you choose that type of car is individual. They are custom reasons.

So here are my hopes, beliefs and some advice. It is my hope that Americans can financially behave themselves out of this crisis by getting back to their core values. I believe that Americans can lead themselves into financial freedom by accepting where they are without guilt, and committing to move forward with a purposeful plan. I believe that leadership transforms good intentions into positive action. I advise everyone to find a financial advocate; someone who gives a voice to those you love. Someone who will remind you of the critical importance you have to those who depend on you. I believe it is important to work with a Firm whose mission, values and principles you admire. Ask yourself “would I recommend my children to work there?” My advice is to begin now.

Regardless of what has happened in the market, the future begins tomorrow even if you are reluctant to acknowledge it.

I believe a rose is always a nice gift.

I believe it is the small things in life that have the most profound impact.

Randall S. Raner is a Registered Representative and Investment Advisor Representative of Equity Services, Inc. Securities and investment advisory services are offered solely by Equity Services, Inc., Member FINRA/SIPC, 354 Mountain View Drive, Ste. 200, Colchester, VT 05446 (802) 864-6819. The Vermont Agency is independent of Equity Services, Inc.

wealth. It begins with a discussion of a client’s mission, values, hopes and dreams.

Most people want to know how much you care, and then how much you know. Too often the financial industry has used their knowledge to run over the client. We, at The Vermont Agency, believe that a keen understanding of someone’s life path is essential.

Most financial institutions are sales organizations. This is also true of The Vermont Agency (the 150+ year old firm I shepherd). Our “differentiation” revolves around four components: 1) A clearly defined mission statement: “To Dramatically Impact the Lives of Others”. This does not explain what we do but why we do it.

It defines what we hope to accomplish. We are in the “personal accountability business”; we just happen to sell financial services products.

2) We lead with the values and principles of our firm. We remember our heritage as a Vermont company before we engage in any relationship. These values are shared during our trademarked and copyrighted process, “Critical

Ask the Experts 2009 | vermontbiz.com

of what they hope to accomplish. This process has two functions. First, is an understanding of values, resources and commitment. This is the foundation of financial literacy and behaviors.

These steps are what we call “Critical Mass™” because they are the foundation, like the foundation of a house. We start here instead of the roof. Second, is implementation and service. We believe thoughtful advice is meaningless without action and follow up. These are the “No Boundaries™” steps in our process and they assure that our commitments to you are enduring.

4) The fourth component is our “Shared Intellectual Property Model™”. The model was developed around the belief that a financial person cannot possess all the intellect and expertise required to solve all financial challenges and opportunities. The Vermont Agency prides itself on our breadth of expertise and our focus on bringing a team approach to our clients.

Process over product is the only way finan-

TC45274(1108)

The Vermont Agency 354 Mountain View Dr, Ste 200, Colchester, VT 05446 Ph: (802) 864-6819; Fx: (802) 864-0331 Mailing Address: P.O. Box 909, Burlington, VT 05402-0909

TECHNOLOGY TRENDS

Technology Trends for Business Optimization I

performance objectives of the MSP. One of the key components of Managed Services is they take a proactive approach to network management unlike the typical break-fix reactive mode. Most Managed Services include remote monitoring and maintenance of the customer’s network. This can include patch management and updates of operating systems and software applications, disk optimization, network monitoring, scheduled backups, and virus and anti-spam updates. Because the MSP uses remote monitoring capabilities they are able to proactively identify and correct network issues before they cause downtime.

Many of these activities are delivered remotely over a secure connection and can be scheduled to run when most convenient for the customer.

n today’s highly competitive “always on” business environment, successful organizations are utilizing new technologies and taking advantage of new service delivery methods from vendors to help them optimize their own business resources and enhance productivity. Many companies are choosing to implement new applications in order to become more productive and efficient, reduce and manage costs, and improve their service offerings to their customers. A few of the trends businesses are leveraging include Unified Communications strategies, Teleworker deployment and the adoption of Managed IT Services for the day to day management of a company’s voice and data network infrastructures.

UNIFIED COMMUNICATIONS ENABLE BUSINESS PROCESS IMPROVEMENT Unified Communications is the convergence of communications systems with business applications and devices. By implementing a Unified Communications platform a company can increase productivity, improve internal and external communications, enable teamwork and collaboration and provide mobility for their workforce.

The Unified Communications umbrella covers a number of applications that can help your business become more efficient and effective.

Unified Messaging allows users to utilize one message store for all of their Voicemail, Email and Fax messages. By integrating a company’s Email, Fax and Voicemail systems onto the same platform, employees can easily manage all message types. Whether an employee is in the office or away, messages are readily accessible and easy to manage. Messages can be accessed by phone, a personal computer via email, from a cell phone or PDA or via the internet. Many of today’s Unified Messaging solutions provide text to speech options, voice activated dialing, calendar functionality and mobility through twinning of cell phones and other land line phones with a user's office phone.

Mobility Applications combined with Presence Management allows for complete connectivity for remote employees and road warriors, regardless of location. By layering on Presence Management capabilities, a geographically dispersed workforce becomes seamless and transparent. Presence Management applications enable faster, more effective collaboration between employees and better overall communication between departments as well as with business partners and customers. Through a common instant messaging type interface Presence Management users can see whether their co-workers are online and available, on the phone, in a meeting or out of their office.

This enables staff to readily identify available individuals with the right skills to address the issue at hand. Conferencing and Collaboration applications provide a platform that encourages teamwork and allows for highly interactive online meetings, brainstorming sessions and presentations. Collaboration and conferencing tools allow employees to share files, presentations and their desktops with others, eliminating time and distance barriers.

"Be Anywhere!" Many Collaboration tools are web enabled. They can be utilized by anyone, anywhere with an internet browser and connection.

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TCO/ROI: THE BOTTOM LINE

This allows for these tools to be utilized not just by employees, but also, with customers, suppliers and vendors. By implementing Unified Communications strategies, organizations can achieve first call resolution for their customers. They provide customers and employees access to the right individuals and information, resulting in higher customer satisfaction and more productive employees.

TELECOMMUTING BRINGS WORK HOME AND BEYOND Thanks to the availability of broadband Internet connections and the convergence of Voice, Data and Video, Telecommuting is growing rapidly.

Small and mid-size businesses are leveraging the technology to reduce operating expenses, improve productivity, improve quality contact with customers, while providing a better “work-life” balance for employees.

Telecommuting is also a powerful tool in employee recruitment and retention. Teleworkers tend to be happier and more productive than their office bound co-workers. Additionally, the environmental benefits associated with Telecommuting, through reduced motorized transit, helps progressive companies achieve their green objectives by reducing their overall impact on the environment.

And, Telecommuting provides organizations with a disaster recovery and business continuity plan when workers are unable to get to work due to weather, natural disaster or other business impacting events.

Telecommuting, through a Virtual Private Network (VPN), affords telecommuters full access to all corporate resources, including their telephone, from any distant location. A Teleworker phone is any remotely located telephone that duplicates the user’s office desk phone. Teleworker phones make it possible to make and receive phone calls from the company’s PBX by connecting to it over a broadband Internet connection from a remote location. Traveling or remote workers can be con-

Ask the Experts 2009 | vermontbiz.com

nected to the corporate phone system as though they were sitting at their office desk. Soft phones offer the same functionality, except that the user’s phone resides on their laptop and is accessed through software and a headset. Many soft phones provide for additional functionality such as point and click dialing from an email address book or by highlighting a phone number on a webpage or email. Screen pops, linked to contact management software, back office applications, or, desktop video conferencing are also common soft phone features.

MANAGED IT SERVICES OFFER PEACE OF MIND Managed IT Services involve the outsourcing of day to day management and operations of a company’s data and voice networks to a Managed Service Provider (MSP). Managed Service Providers act as a virtual IT staff for businesses who would otherwise be unable to afford to employ workers with the skills required to manage today’s complex technologies. With Managed Services, an organization increases their ability to focus on their core competencies without the distraction of trying to manage their network infrastructure.

MSP’s typically deliver ongoing services on a retainer basis for an agreed monthly fee. An advantage of the MSP service delivery model is that the customer can plan technology expenditures and accurately budget for their network support. Along with predictable costs, Managed Service customers enjoy improved levels of service when accompanied by a Service Level Agreement (SLA). SLA’s detail the responsibilities and agreed upon

In any organization, it is key to fully understand the “total cost of ownership”. For instance, it is published

by Wilkofsky Gruen Associates, that the upfront cost of any system is 47% of the total cost over a 5 year period for all industries. Other components are software upgrades at 16%, add-ons at 21%, maintenance/ support at 8%, training and insurance both at 4%. TCO should also include an element for the value of money over time. Often times a monthly commitment makes more sense than an upfront purchase with all elements considered.

Return on investment (ROI) plays a key role as well. There are many opportunities in every business environment to find ways to re-tool and optimize systems/processes/services, etc. By doing a comprehensive optimization analysis during a business process improvement review, an average business can realize a significant improvement in continued efficiency as an organization.

In summary, many organizations are using technology to optimize their business processes and improve their bottom line. Through the use of Unified Communications, companies can be more responsive to their customers and deliver greater value by empowering their employees with a full suite of productivity enhancing resources.

Telecommuting offers reductions in operating expenses, enhances benefits the environment, creates greater employee satisfaction and improves customer interaction, from remote or geographically dispersed employees. Managed IT Services allow for cost management and planned budgets for maintaining and growing communications infrastructure by outsourcing day to day management, monitoring and optimization of a business network to a Managed Service Provider.

!"#$%&'&()!*+$,)-./ This is an exciting time for TwinState and we want take this opportunity to say &0'$1)23* to the Vermont community for your support over the years.

Over the last 40 years, TwinState has leveraged many technological advances to provide incredible benefits to our 2000 customers. From easy-to-use, feature-rich telephones to Voice over IP, unified messaging, presence management, teleworking and SIP; from wired and wireless networking to antivirus and desktop solutions to ISP/carrier services, we are continually affirming that technology is the chief driving force behind, and in front of, all types of business process improvements.

As far back as 1973…

“It was a lucky day for us when we met him [Chuck Currier, founder of TwinState]; we knew he would ‘go the extra mile’ for us…”

Written 10/24/08 by Richard C. Bartholomae, owner 1963-1978, Four Winds Motel, Manchester, VT; TwinState’s first Vermont hospitality customer. (Thank YOU Richard!)

So, if you’re in need of new business communications technology or just want to ask some questions, be sure to contact TwinState, your 40-year-old partner, at 4..546654....

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(c) 2008, TwinState/Voice.Data.Video.Inc. All rights reserved.

WORK OPPORTUNITIES

Workforce Matters!

by Patricia Moulton Powden, Commissioner, Vermont Department of Labor

T

he Vermont Department of Labor works with both employers and job seekers to better business in Vermont. We can help with staffing needs, training, regulatory information, labor market trends, workplace safety and more. The department administers a variety of state and federal programs including Unemployment Insurance, Worker’s Compensation, the state apprenticeship program, Next Generation Grant Funds, Project WorkSafe, VOSHA, and more. Our Labor Market Publications include Occupational Projections, monthly press releases, Current Employment Statistics, Economic and Travel Indicators, Licensed Occupations and many more. Included here is a brief overview of one of our grant opportunities, the Workforce Education and Training Fund, information about employees, and a tax credit program that could reduce your business costs.

Visit us online at http://labor.vermont.gov/ and www.vtLmi.info or come into one of our Career Resource Centers, which are listed on our website for help with any of your employment needs.

CUSTOMIZED TRAINING ASSISTANCE OPPORTUNITY! WORKFORCE EDUCATION & TRAINING FUND (WETF) If your company is facing skills training needs for your employees, this state funded program can support training initiatives for Vermont workers. Administered by the Vermont Department of Labor (VDOL), grants are available for employers and public or private training providers, in collaboration with employers to improve the skills of workers who are unemployed, under-employed, or at risk of becoming unemployed. Activities under this program must include occupational training/education. Projects may train for new or vacant jobs, or may train current workers for greater job security or upgrades. Below is a summary of some of the opportunities these funds can address. For more information contact your local Vermont Department of Labor office of visit our web site listed below.

All projects must: s (AVE CLEAR EMPLOYER INVOLVEMENT and lead directly to new or “upgraded� employment after training is completed. Upgraded employment means that workers will receive pay increases over and above routine wage adjustments, as a direct result of training. s 0ROVIDE ADDITIONAL SKILLS TRAINing that could open new markets or strengthen current markets for employers to avoid layoffs. s ,EAD TO JOBS PAYING AT LEAST 200% of current minimum wage, or 150% with benefits totaling 200%.

If wages will not meet these criteria, please contact your local VDOL representative to discuss possible exceptions. s $EMONSTRATE MATCHING CONTRIBUtions. Match may include cash or inkind contributions such as wages paid to employees while attending training.

The match must be from sources other than Vermont Training Program, Workforce Investment Act, or other public sources. s !PPLICATIONS ARE ACCEPTED ON A QUARTERLY BASIS &OR DETAILS GO to: www.labor.vermont.gov. Click on “Grant Information� in the left pane and then “Workforce Education Training Fund (WETF) Grant Introduction�.

Test

Description

Law under which the test has been applied by courts

ABC Test

Employment relationship exists unless the employer can demonstrate all three of the following are true: a) The worker is free from direction & control b) The services are either outside the usual course of the business or are outside all places of business of the entity for which they are performed c) The worker is customarily engaged in an independent trade, profession, or business providing services similar to those being tested.

Vermont Unemployment Compensation Act. (and many other states’ unemployment laws)

Common-law test (used by Internal Revenue Service)

Employment relationship exists if employer has right to control work process, as determined by evaluating totality of the circumstances and specific factors

Federal Insurance Contribution Act Federal Unemployment Tax Act Income Tax Withholding Employment Retirement & Income Security Act National Labor Relations Act Immigration Reform & Control Act

Right to control or nature of business test

Employment relationship exists if employer has right to control work process or the work being performed is integral to the employer’s business.

Vermont Workers’ Compensation Act

Economic realities test

Employment relationship exists if individual is economically dependent upon a business for continued employment

Fair Labor Standards Act Title VII Age Discrimination in Employment Act Americans with Disabilities Act Family & Medical Leave Act

Hybrid Test

Employment relationship is evaluated under both common-law and economic reality test factors, with focus on who has the right to control the means and manner of workers performance

Title VII Age Discrimination in Employment Act Americans with Disabilities Act

EMPLOYEE OR INDEPENDENT CONTRACTOR???

Determining the correct employer/employee relationship has distinct financial implications for employers. The recent increase in the use of independent contractors and other contingent workers is a reflection of employers trying to reduce their employment costs. &EDERAL LAW REQUIRES THAT EMPLOYERS PAY A SHARE OF EMPLOYMENT TAXES for employees, but not for independent contractors.

Vermont and most other states use the ABC test to determine whether or not the worker must be covered by unemployment insurance. Workers compensation uses the “right to control� and “nature of business� test. To the left is a table summarizing tests for determining whether or not a worker is an employee.

Failing to make the proper determination of a worker’s status CAN HAVE DIRE CONSEQUENCES INCLUDING HEFTY FINES

EMPLOYERS, DO YOU KNOW ABOUT THE WORK OPPORTUNITY TAX CREDIT? You can earn Federal Income Tax Credits for your company by taking advantage of this program, which rewards employers for hiring people most in need of employment. Your tax credit can be as much as: $2,400 for each new adult hired. $4,800 for each new disabled veteran hired. $1,200 for each new summer youth hired. $9,000 for each new long-term family assistance recipient hired.

You, as the employer make the hiring decisions. There is no limit to the NUMBER OF NEW HIRES WHO CAN QUALIFY AN EMPLOYER FOR THE TAX SAVINGS AND there is minimal paperwork for you to complete.

To earn these tax credits, employers must apply and receive certification from the Vermont Department of Labor assuring that their newly hired employee belongs to one of the target groups eligible for the Work Opportunity Tax Credit (WOTC) before claiming credit on their federal income tax return. Two forms, 8850, “Pre-Screening Notice and #ERTIFICATION 2EQUEST FOR 7ORK /PPORTUNITY AND 7ELFARE TO 7ORK #REDITSv and ETA-9061, “Individual Characteristics Form� must be completed and MAILED TO THE 6ERMONT $EPARTMENT OF ,ABOR TO ACQUIRE CERTIFICATION &OR details, please contact Cynthia Seckler, VT WOTC Coordinator, Cynthia.seckler@state.vt.us 802-828-5277.

WOTC helps both employers and targeted job seekers. Employers reduce their employment costs; job seekers gain valuable experience. When you are ready to hire, think about whether you can take advantage of the Work Opportunity Tax Credit!

THE VERMONT DEPARTMENT OF LABOR: BETTERS BUSINESS IN VERMONT 34

Ask the Experts 2009 | vermontbiz.com

COLLEGE FINANCING

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Ask the Experts 2009 | vermontbiz.com

WORKSHOPS AND GREEN INITIATIVES

The Center For Sustainable Practices at Vermont Tech Dedicated to applying emerging green and sustainable practices in the areas of energy, building, land use and agriculture

I

f you own or manage a Vermont-based business, Vermont Tech has probably contributed to your workforce. Since 1997, we have supplied hundreds of technically trained employees to Vermont employers. For more than 40 years we have been the place to go for the kind of hands-on technical education that provides the backbone of Vermont’s labor force.

Over the years, Vermont Tech has responded to the changing needs of Vermont’s business community by developing and implementing programs that prepare graduates for life – and success – in the real world.

As the state’s only Technical College, we take our mission – and commitment to Vermont – very seriously: Close to 90% of our students come from Vermont; Nearly 87% of our graduates remain in Vermont to work or pursue advanced degrees; Our graduates enjoy a consistent 98% job placement rate – a testament to their education, training and experience; and Most of our graduates live in Vermont; work in Vermont; pay taxes in Vermont; and raise their families in Vermont.

Vermont Tech plays a significant role in the success of Vermont business.

Over the past ten years, the Vermont economy has seen many changes. Most heavy and light manufacturing has been globally “outsourced”. Rising energy prices have all of us thinking about how we can live and work in a new, energy-challenged econo-

GIVE US A CALL AND LET US KNOW HOW WE CAN HELP YOU. The Center for Sustainable Practices Vermont Technical College P.O. Box 500, Randolph Center, VT 05061 csp.vtc.edu President, Dr. Ty J Handy, 802-728-1251 Interim Director, Phil Petty, 802-728-1208 my. And most of us agree that we need to find better ways to ensure that our future energy needs will be met in a sustainable way – independent, to the greatest extent possible, from the influences of other nations. Vermonters have a strong environmental ethic, and the business community understands the need to move in this direction for both environmental and long-term economic reasons.

To address these realities, Vermont Tech has introduced three new initiatives: A new bachelor’s degree program in Sustainable Design and Technology, which prepares graduates to evaluate, design, and permit environmentally responsible building sites, implement energy conservation and renewable energy strategies and design energy efficient “green” buildings.

A new bachelor’s degree programs in Diversified Agriculture (proposed for fall, 2009), which builds on our long and successful history of practical and hands-on agricultural education. The Diversified Ag program will bridge the gap between conventional and other forms of farming with an eye toward diversifying local food production. Business planning and management will be critical aspects of an education that will include dairy farming, vegetable, fruit and

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crop production, grass-fed meats, and production of value-added agricultural products.

The Center for Sustainable Practices (CSP).

Formed in 2007, the CSP serves as the bridge between Vermont Tech, its faculty and students, and the businesses and communities of Vermont. In its first year CSP has made significant progress. We have worked with state and federal agencies, several Vermont businesses and NGO partners to identify initial needs and funding. And we’ve begun to build a small institution that will help Vermonters apply technology to meet the challenges of today and tomorrow. A few examples of our first-year activities illustrate several of CSP’s approaches to practical, boots-on-the-ground action: on-campus demonstration facilities; education and training; and working with our local community.

RENEWABLE HEAT & POWER DEMONSTRATION & TRAINING FACILITY With funds provided by Senator Leahy through the Department of Energy, CSP with the Vermont Sustainable Jobs Fund, the Central Vermont Solid Waste Management District, and the Vermont Environmental Consortium are assessing the feasibility of heating and powering much of our Randolph Center campus with a manure and biomass anaerobic digester.

GREEN HISTORIC REHABILITATION DEMONSTRATION SITE Working with the Preservation Trust of Vermont, the National Trust for Historic Preservation, and the Vermont Office of Historic Preservation, CSP is planning the rehabilitation of the historic Allen House sited at the entrance our campus. Once renovated, the structure will serve as the home of the Center for Sustainable Practices, offering meeting space and a location for workshops and trainings.

The planned rehabilitation will demonstrate

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what can be done to make historical structures energy efficient.

ENERGY EFFICIENCY & RENEWABLE ENERGY WORKFORCE-TRAINING With generous support from the Vermont Office of Economic Opportunity, the Blittersdorf Foundation, the Vermont Community Foundation and the Northfield Savings Bank, CSP organized and implemented a 9-day, intensive Energy Auditor Training. This training served 11 Vermonters: students; weatherization workers; and faculty. With funding from Senator Leahy through the U.S. Department of Labor, CSP, Vermont Tech’s Technology Extension Division and the Vermont Office of Economic Opportunity are developing several weatherization workforce-training programs. We will deliver weatherization installer and weatherization crew chief trainings beginning in January of 2009.

RENEWABLE DISTRICT HEATING FOR OUR COMMUNITY With funding from the Clean Energy Development Fund, CSP is partnering with the Biomass Energy Resource Center and the Randolph Area Community Development Corporation to explore the feasibility of bringing a combined heat and power biomass-fired facility to Randolph. Local biomass would be used to generate electricity and heat for the hospital and village area of Randolph.

INCREASED OPPORTUNITY FOR LOCAL FOOD PRODUCERS This year, college staff, faculty and students expanded the size and scope of the college’s market garden. We held a Wednesday Night Farmer’s Market on campus with fourteen area vendors to offer the local community garden produce, meat, goat’s milk and goat’s milk products, homemade pickles and relishes, bread and other homemade products. Extra produce from the college garden was donated locally.

WE WANT YOUR INPUT! Over the past year Vermont Tech and CSP have begun to build the educational foundation to address technology needs in a sustainable society. We are now ready to work with the Vermont business community to play our part in addressing the future needs of Vermont business. We’d like to hear from you about how we can serve your needs and help you play your part in helping Vermont meet the challenges we all face.

WORKING TOGETHER, WE CAN MAKE A DIFFERENCE. VERMONT TECH AND CSP ARE GRATEFUL FOR THE HELP AND SUPPORT OF OUR PARTNERS: -Blittersdorf Foundation -Vermont Community Foundation -Northfield Savings Bank -National Trust for Historic Preservation -Preservation Trust of Vermont -Vermont Division of Historic Preservation -Lincoln Agrisource, LLC -Randolph Area Community Development Corporation -Biomass Energy Resource Center -Vermont Sustainable Jobs Fund -Central Vermont Solid Waste Management Center -Vermont Environmental Consortium -Agency of Agriculture, Food and Markets -Vermont Office of Economic Opportunity -Central Vermont Community Action -Technology Extension Division -Fourteen Farmers’ Market vendors