First Business Bank

Marketing: Pinterest becomes top traffic driver for retailers

Thu, 2 Feb 2012 06:00:00 GMT

Pinterest, a two-year-old social bookmarking site that lets users collect and share things they like on the web, is driving increasingly significant amounts of traffic to retailers' websites.

The service enables users to create online bulletin boards, or "pinboards," for popular categories such as home decor, food and wedding inspiration. Members can use Pinterest's "Pin It" bookmarklet tool and iPhone app to save things they see online and offline, and explore and repin the images their friends collect via their personal newsfeeds. The website is especially popular among women, who account for 58% of Pinterest's traffic, according to Experian Hitwise.

The site's popularity is quickly growing.

Finance: FOMC statements - side-by-side comparison

Thu, 26 Jan 2012 06:00:00 GMT

This is a side-by-side comparison of the January 25, 2012 to the December 13, 2011 FOMC statements.

Management: Culture eats strategy for lunch

Tue, 24 Jan 2012 06:00:00 GMT

Get on a Southwest flight to anywhere, buy shoes from Zappos.com, pants from Nordstrom, groceries from Whole Foods, anything from Costco, a Starbucks espresso, or a Double-Double from In N' Out, and you'll get a taste of these brands' vibrant cultures.

Culture is a balanced blend of human psychology, attitudes, actions, and beliefs that combined create either pleasure or pain, serious momentum or miserable stagnation. A strong culture flourishes with a clear set of values and norms that actively guide the way a company operates. Employees are actively and passionately engaged in the business, operating from a sense of confidence and empowerment rather than navigating their days through miserably extensive procedures and mind-numbing bureaucracy. Performance-oriented cultures possess statistically better financial growth, with high employee involvement, strong internal communication, and an acceptance of a healthy level of risk-taking in order to achieve new levels of innovation.

HR: A new way to buy health insurance: "exchanges"

Mon, 16 Jan 2012 06:00:00 GMT

On November 18 the US Department of Health and Human Services unveiled -- according to their press release -- an "unprecedented tool developed for small businesses to find and compare health insurance plans."

I was stunned. I had no idea after all these years flying under the radar, the unique abilities of health insurance agents and brokers were finally being recognized! I had to pinch myself and, in so doing, woke up to the reality I was in fact seeing what surely is the precursor to a federal health insurance "Exchange." Check it out for yourself: www.healthcare.gov. In particular, CRW readers will want to click on and view the three minute video located on the Home Page called the "Small Business Health Plan Finder."

Let's back up for a moment. A cornerstone of The Patient Protection and Affordable Care Act of 2010 (PPACA) is the creation of new purchasing pools -- "Exchanges" -- where individuals and small businesses can buy health insurance, beginning in 2014, with the federal government providing income based premium subsidies. States have the option of setting up and administering their own Exchanges and must demonstrate a readiness to do so by January 1, 2013.

How might health insurance sold through a Wisconsin Exchange differ from the small business plans being marketed today? (See "A Pool is a Pool is a Pool" from the July 2011 issue of CRW.) Of the many good ideas being circulated, if I was appointed Insurance Czar, here are just a few features I'd require:

Management: Five deadly business sins

Fri, 13 Jan 2012 06:00:00 GMT

Just how lethal are Peter Drucker's "five deadly business sins"? You might ask Eastman Kodak (EK), which has committed at least a couple of them and now finds itself on the verge of bankruptcy.

Word emerged last week that Kodak, founded in 1892 and for many decades widely celebrated as one of the world's greatest companies, may soon file for Chapter 11 protection if it can't raise enough cash by selling off pieces of its patent portfolio. The news was a sharp reminder of how incredibly challenging it is to sustain any organization, even the most iconic.

How did it come to this? In certain respects, Kodak has been on the defensive since it began facing heightened competition from its arch rival Fuji (8278:JP) some 30 years ago. But fundamentally the company has slipped because it fell prey to two of what Drucker identified in a 1993 essay as a quintet of "avoidable mistakes that will harm the mightiest business."

The first is a preoccupation with high profit margins. The second: "slaughtering tomorrow's opportunity on the altar of yesterday." (The three other deadly business sins, according to Drucker, are "mispricing a new product by charging `what the market will bear'; "cost-driven pricing" in which you merely add up your expenses and then stick a profit margin on top--a subject I've explored previously; and "feeding problems" while "starving opportunities."

HR: Five out-of-date job-search tactics

Fri, 13 Jan 2012 06:00:00 GMT

"Is it still correct to use `Dear Sir or Madam' in a cover letter?" a reader asked in an e-mail.

"That isn't such a great idea," I wrote back. "No one uses `Dear Sir or Madam' anymore, unless they're actually writing to a madam, such as Heidi Fleiss." I'm not sure my e-mail correspondent caught the joke.

It's not that using out-of-date job-search approaches brands you as older. Rather, it's that using no-longer-in-fashion job search techniques marks you as out of touch.

Employers pay us, in part, to be aware of trends and phenomena that affect the workplace. Working people (and job-seekers) should follow the news, keep a bead on our changing world, and stay abreast of changes in business, technology, politics, and cultural shifts. That isn't an unreasonable expectation. If a job-seeker isn't curious and perceptive enough to notice that the last time he saw "Dear Sir or Madam" on a letter was around the time Chevy Chase impersonated Gerald Ford falling down the stairs, how will he notice what's changing in his field?

Leadership: How great leaders inspire and transform

Thu, 12 Jan 2012 06:00:00 GMT

Several years before I came to Campbell I worked for the CEO of Nabisco as part of his executive team. He asked his direct reports to confidentially take a test designed to provide insight into our ways of thinking. The test results identified me as an "Idealist-Realist." I've used this term as a touchstone time and again over the years because it is such an apt description of my core leadership philosophy. Over my career, I have found that idealism and realism are the two leadership attributes that truly inspire and mobilize people. Separately, these qualities are limited and ineffective, but combined they create a powerful tool for engagement.

IT: The year's best hardware, software, and cloud services

Mon, 9 Jan 2012 06:00:00 GMT

Was it the philosopher George Santayana who said, "Those who don't remember the past are condemned to repeat it?" Did he offer any hints for those of us who want to repeat the past, especially the successes? We're beyond the teary elegies of 2011 and deep into making resolutions for 2012. If we're going to stand half a chance of creating something great this year, it only makes sense to pause and celebrate what went right in 2011.

Here is our list of 2012 Technology of the Year Award winners, given to the hardware and software we reviewed over the past year that make life better for the people who toil in service of the enterprises and, it only follows, for the customers who are served by them. We spent several weeks arguing over the list and, in the end, produced our annual collection of tools we want to celebrate. Not all of the choices were unanimous, but all of them made us look two or three times because there was something amazing.

IT: How to move a data center without having a heart attack

Mon, 9 Jan 2012 06:00:00 GMT

As the dust settles in the aftermath of a successful physical data center move, I'm nursing my bruised and cut hands, kicking back with a Scotch, and reflecting on what went right. I said "successful," but actually there's no such thing as a failed data center move: If something's going wrong, there's nothing you can do except keep working until everything's up and running.

But a successful data center move is no accident. Whether it's a data center relocation or new data center build-outs, detailed plans must be made months or even years in advance.

HR: How dysfunctional is your workplace?

Fri, 6 Jan 2012 06:00:00 GMT

People tell me crazy workplace stories all day long and ask me, "How bad is my situation, compared with other stories you hear?" Sometimes, they're middle-of-the-road scenarios (your boss and another manager hate each other, and you have to wiggle around the problem without making enemies) and sometimes they're truly heinous (your boss and another manager hate each other, and your boss told your whole team in a staff meeting to thwart and sabotage people in the rival's department).

You might be thinking about a job change in 2012 or just asking yourself the age-old workplace question, "Am I crazy, or is working around crazy people just making me feel that way?" Take our quiz to discover whether the level of dysfunction on your job is low, average, or reason for a speedy exit.

Things are looking...up?

Wed, 4 Jan 2012 06:00:00 GMT

I am an eternal optimist. I always try to look at things from the perspective that a positive response will lead to a positive outcome. The same can be said of the results for several economic indicators recently reported in Northeast Wisconsin.

First, the positive empirical evidence shows the economy is improving in Northeast Wisconsin.

The following results came from the NEW Manufacturing Alliance 2012 Manufacturing Vitality Index, a survey specifically of manufacturers in Northeast Wisconsin:

63% of those responding reported increased sales in 2011 and expect even higher sales growth in 2012.

Similar to last year, 21% of firms expect significant plant expansion and 36% of the firms surveyed were planning a plant modernization project. This is down from 48% a year ago.

43% of respondents anticipate hiring new personnel in the first quarter of 2012.

Positive indicators can also be found in the 2012 First Business Economic Survey of Northeast Wisconsin, a broader based survey of all businesses in Northeast Wisconsin:

The percentage of firms reporting increased sales revenues was 56% compared to 51% in 2010.The percentage reporting increased profitability stayed flat at 45%.

55% of firms reported increased pricing compared to 36% in 2010.

Capital expenditures were slightly up in 2011, though not significantly, with 38% of firms reporting increased capital expenditures in 2011 compared to 30% in 2010.

Wage and job growth were up slightly from 2010. However, for 2012, 37% of businesses project increased employment and 64% project increased wages.

Some of the drag on the improvement in Northeast Wisconsin can be found in the negative results of the same survey:

Over 62% of businesses reported an increase in their operating costs compared to 48% in 2010. 32% of businesses experienced a shortage of qualified technical school graduates. This shortage was most evident in the manufacturing industry.

I would interpret the results of these surveys and some possible positive outcomes in the following ways:

First, in both surveys, firms reporting revenue increases are up. This is good. Pushing more products out the door is what most businesses are around to do. I am not too concerned about the increase in operating costs (and therefore level profitability) as there was a significant amount of stress in the system as firms held off on increasing operating costs in prior periods, allowing more revenues to fall to the bottom line.

Second, firms feel that prices need to increase and many are pushing this increase out to their customers. Many firms reported increased sales revenues and it could be that part of this increase is coming through increased prices and not just increased volumes.

Third, firms are still hiring, and it appears that they are hiring as an investment in the future, since the profitability of firms remained flat year over year and capacity utilization actually declined. The inability of firms to find and attract qualified candidates is the most disconcerting indicator and is reflected in both surveys.

Anecdotally, I saw more people than ever this year at the NEW North Summit 2011. Many of the discussions that I participated in lead me to the following conclusions:

Regarding the workforce, noted as a challenge in both surveys, the labor pool is strengthening, largely due to some of the initiatives of the area technical colleges and workforce development entities. These groups are critical to improving the pool of talent that is needed to fill the jobs that will come online in the future.

Prices appear to be increasing and that's very positive. That indicates that there is confidence that customers are at the point of being willing to pay more for the goods and services they use.

Also, as expenses normalize, this will lead to better margins. I think all agree that business has been improving, despite some of the noise and distractions occurring in the region and nation on a political level.

So, call me optimistic, but I believe improvements will continue to be made as long as businesses share this optimism and feel confident that things will continue to improve.

Michael E. (Mickey) Noone is President - Northeast Region, First Business Bank, headquartered in Appleton

HR: Motivating employees - colleagues and customers can inspire creativity

Tue, 3 Jan 2012 06:00:00 GMT

Colleagues and Customers Can Inspire Creativity

From financial bonuses to extra time off, supervisors are always looking for ways to motivate employees to be more creative and share ideas with colleagues. Psychologist and business professor Adam Grant suggests an outside-the-box alternative: Find ways for your employees to grab face time with their customers and their colleagues in other departments.

An organizational psychologist and professor of management at the Wharton School of the University of Pennsylvania, Grant has done several studies aimed at figuring out what motivates employees to innovate and share ideas. His findings indicate that when workers meet and talk with customers and colleagues -- and subsequently realize that what they do actually benefits real people -- it serves as a strong catalyst for creative thinking.

Ironically, the isolation of workers from end users is largely efficiency driven, says Grant. Organizations generally discourage interaction between workers and end users, assuming it makes people and processes less efficient. In addition, modern technology increasingly minimizes face-to-face communication.

Strategy: Tips from a technophile - How apps can help your business

Sun, 1 Jan 2012 06:00:00 GMT

In case you've been away from civilization for a while, here's a scoop: Mobile apps are a big deal these days. Why? And why replace the excellent browser-based applications of today?

Mobile apps aren't here to "replace" anything, but rather to offer productivity, convenience and entertainment for a large array of users. According to a recent article in Information Week, 43 percent of cell phone users have apps on their smart phones - and use them regularly. This is big news if you're in marketing and would like to reach a potential market of a few hundred million people.

But what if you're the owner of a small business? Or the go-to technology person at a larger firm - the chief technology officer or chief information officer? Or "merely" a smart phone user?

Sales & Marketing: social media strategies - the science behind emotional connections

Tue, 20 Dec 2011 06:00:00 GMT

At the core of every healthy brand is a really good story. The world's greatest brands know how to deliver their stories in an ongoing and memorable manner. The job of brand storytelling as a part of a strategic content program is a challenging one requiring heaps of skill - and a dollop of science.

Below are three premises of the science of memory creation and retention that we can use to make our brand stories stick.

Technology: new ways to captcha bots

Tue, 20 Dec 2011 06:00:00 GMT

It's not your vision going bad: Those blurry words that some websites force you to retype when you log in are getting blurrier. They're known as captchas, and they're designed to stop malicious software from accessing a site and, say, using speedy algorithms to snatch up all the tickets to a concert in seconds. Computers have a hard time deciphering the wavy characters, but they are getting better, says Luis von Ahn, the Carnegie Mellon computer science professor who invented captchas in 2000. ReCaptcha, the company he founded and sold to Google (GOOG) in 2009, still provides more than half of the 280 million captchas solved each day and has had to steadily ratchet up the difficulty, von Ahn says. "It's tiny, tiny tweaks, making them harder over time."

Sales & Marketing: to sell more, answer these questions

Tue, 20 Dec 2011 06:00:00 GMT

The biggest problem small businesses have is selling, says Howard Stevenson, a serial entrepreneur, professor emeritus of entrepreneurship at Harvard Business School, and the author or editor of 11 books on entrepreneurship. "A lot of people are afraid of selling. I've tried to convince schools that selling is important, but try to find a course on sales management in a major university. It's a hole in everybody's practical education," Stevenson says. In his new book, Getting to Giving, Stevenson poses four questions that he thinks entrepreneurs should use to inform their sales strategy and improve it.

Technology: iPad may get 2 sizes, 2 debuts in 2012

Tue, 20 Dec 2011 06:00:00 GMT

A new report from Asia suggests that Apple Inc. may offer two iPad sizes in 2012: a full-size iPad 3 in the first quarter and a 7.85-inch version in the second half.

Technology: Google may launch own tablet within 6 months

Mon, 19 Dec 2011 06:00:00 GMT

Google Inc. Google Inc.

Latest from The Business Journals

Google, private equity firm make solar investments
Google may launch own tablet within 6 months
Google tablet could launch by mid 2012

Follow this company may launch a branded tablet device within six months, according to comments Chairman Eric Schmidt made to an Italian publication on Monday.

"In the next six months, we plan to market a tablet of the highest quality," Carriere Delia Sera quoted Schmidt as saying.

It's not entirely clear from that whether it will be a Google-branded device or an important new device built by a partner and powered by the Mountain company's Android operating system.

Finance: FOMC statements - side-by-side comparison

Wed, 14 Dec 2011 06:00:00 GMT

This is a side-by-side comparison of the December 13, 2011 to the November 2, 2011 FOMC statements.

Technology: most tablet owners go wi-fi only

Tue, 13 Dec 2011 06:00:00 GMT

Most owners of tablet computing devices like Apple Inc's iPad don't buy wireless service plans, a new report said on Tuesday.

Connected Intelligence, a service of The NPD Group, reported that 65 percent of tablet owners in October said they intended to go Wi-Fi only. That is up from 60 percent in April.

Strategic Leadership: Dalton's strategic growth lesson - stay the course!

Fri, 9 Dec 2011 06:00:00 GMT

I feel blessed to have been mentored and have partnered with such a balanced leader as George Dalton. He was strategic, focused, resilient and persistent; yet open, curious, collaborative and engaging, demonstrating both the power of strength and the power of vulnerability all in one leader.

I met George in late 2008, when introduced by Carla Rutley, outreach director for Ottawa University, and client Scott Haag, president of Moore Oil Company. Both knew that I did leadership and business development consulting and that I was considering a partner for my new business venture, BIZremedies, and believed George could potentially be my perfect partner.

Human Resources: manufacture talent

Fri, 9 Dec 2011 06:00:00 GMT

Faced with an acute talent shortage, employers continue to re-assess how to "manufacture" the talent they need to prosper.

For millions of job seekers, this is a frustrating conundrum. Job seekers want to work and have capabilities, but employers are becoming increasingly specific about the skills they want for employment.

ManpowerGroup's 2011 Talent Shortage Survey revealed that 52 percent of U.S. employers are having difficulty filling mission-critical positions, up from 14 percent in 2010. The top three jobs identified as the most challenging to fill include skilled trades, sales representatives and engineers.

The survey indicated that "old" skill requirements are not meeting the new job demands. To illustrate, the former criterion for hiring a sales representative included assertiveness, a thorough knowledge of product or service, a competitive nature and determination to achieve goals. Now, contrast these with the "new" sales representative competency requirements:

Business Strategy: design your business model to match your employees

Fri, 9 Dec 2011 06:00:00 GMT

At Nick's Pizza and Pub, in the Northwest Suburbs of Chicago, the young people who work in either of its two locations find the culture energizing. Nick, the owner, finds it intentional.

As 48-year-old Nick Sarillo contemplated further expansion a few years ago, he became determined to create a culture that would ensure success. This is precisely what he has done. Let me remind you of a key focus as we think about corporate cultures: attracting and retaining the workforce of today and of the future. Employees join companies, and they leave bosses and cultures.

Business Strategy: catering to the senior market - as the baby boomers age

Mon, 5 Dec 2011 06:00:00 GMT

"That's not for me, that's for some old person," quips the 60-something lady on the popular television ad for an emergency alert product. Like many baby boomers she defines, in a nutshell, her generation's approach to getting older: utter denial.

But those who are watching the boomers reach retirement age are finding new opportunities and insights into a niche market with growing possibilities. New wellness facilities, housing options, financial products, plastic surgery clinics and a host of other businesses are lining up to cater to boomers and those who will care for them as they age.

Risk Management: managing risk in the era of behavior

Sat, 3 Dec 2011 06:00:00 GMT

We are increasingly connected and interdependent. We live and work continents apart but are still in each other's backyards--that's why high-risk mortgages in Arizona and Nevada can destabilize Iceland's economy, for example. Meanwhile, our systems of corporate governance and controls have not kept pace; they're still figuring out past mistakes but failing to anticipate change or enable adaptability.

After years of perfecting business processes, squeezing productivity, and trying to commandeer compliance, the time has come to look for ways to unleash the very best and inspire people to come together, create change, reach across the table--and across borders--to tackle some of our biggest problems. This has substantial implications on how organizations and their leaders anticipate and assess both risks and opportunities.

Management: productivity's four sworn enemies

Fri, 2 Dec 2011 06:00:00 GMT

The biggest time-wasters in the workplace have nothing to do with online shopping.

Businesses earlier this week lost about $1 billion worth of productivity, by some estimates, as employees spent Cyber Monday using their workplace computers to do their holiday gift-buying instead of their jobs--the latest sign of the way that "e-commerce is creating a new and distinct boom," as Peter Drucker once put it.

In all, Cyber Monday saw $1.25 billion in spending over the Internet, up 22 percent from a year ago, marking the heaviest online shopping day in history, according to comScore, a provider of digital business analytics. People purchasing electronics, shoes, books, and all manner of other items from behind their desks accounted for more than half that total revenue.

Not everyone is happy about the trend. "Spending excessive time on nonbusiness activities while at work raises a red flag for employers," warns John Reed, executive director of IT-staffing supplier Robert Half Technology, which found that 60 percent of the chief information officers it surveyed say their companies now block access to online shopping sites.

No boss, after all, likes to see a bunch of employees goofing off. Yet Drucker, I suspect, would have found all the focus on these Cyber Monday shenanigans a bit silly. Rather, the real cause for concern among managers should be those time-wasters that dog their enterprises every day of the week, all year long.

Management: You're Probably a Micromanager

Tue, 29 Nov 2011 06:00:00 GMT

My recent post on why people micromanage triggered over 100 comments, stories, and suggestions -- many of them relating experiences on the receiving end of micromanagement. What was striking was that only two readers actually admitted to being micromanagers themselves. One said:

"I have been micromanaged and guess what? When I rose through the ranks I did the same. It's difficult to admit to yourself. I believe it's a part of the learning process."

The other reader noted:

"I am one of those control freaks you are talking about. I know I am doing it, but sometimes being like that has made me aware of some nasty situations before they turned into disasters. I can imagine that I am a complete nightmare to work for."

This disparity reinforces the curious paradox that I mentioned in the earlier post: While many people complain about being micromanaged, very few think of themselves as micromanagers. But if nobody is a micromanager, then who is doing all the micromanaging?

The answer is that it's all of us (or at least many of us). Let me share a personal confession...

Leadership: The Ambidextrous CEO

Wed, 23 Nov 2011 06:00:00 GMT

Leaders often find themselves struggling when making decisions about supporting the core business while also funding and nurturing the innovative projects on which the long-term future of the business depends. The battles over investment and talent often pit unit leaders against each other.

Hear Michael Tushman and Andrew Binn describe a framework for creating a balance between the old and the new that allows the organization to make the most of creative tension.

Human Resources: new strategies for new employees

Wed, 23 Nov 2011 06:00:00 GMT

Want to get the most out of your next new employee? Business consultant and writer Jeff Haden suggests that companies try something different and take their cues from an old Elvis Presley song: A little less conversation, a little more action.

In other words, Haden advocates that managers skip the traditional rounds of formal lunches, meet-and-greet sessions and dog-and-pony shows and focus instead on helping newbies hit the ground running.

"Everyone is rightly concerned about inclusion, diversity and making people feel comfortable and part of a team," says Haden, who spent 20 years in production management and has written more than 30 nonfiction books, including four that reached No. 1 on Amazon's best-seller list.

"That's all very positive. But I think things have shifted too far to that side," he continues.

That doesn't mean skipping introductions on new employees' behalf. Haden just prefers more emphasis on quickly become a contributing employee and less on building relationships. Managers have a narrow window of time to make a strong, lasting impression on new hires, so it behooves them to send a message that new employees are working for a performance-based organization that values results.

Productivity: Restore Yourself to Your Factory Default Settings

Tue, 22 Nov 2011 06:00:00 GMT

My wireless connection to the internet had suddenly stopped working. At first I was frustrated -- I had been in the middle of browsing some books on Amazon. But I quickly took it as a blessing. I had an article to write and the Amazon browsing was a distraction. I resisted the temptation to distract myself further by trying to fix it and got to work. I finished the article in record time.

That's a lesson in itself. But it's not the whole story.

Marketing: The Spark Plug Theory

Fri, 11 Nov 2011 06:00:00 GMT

Henry Ford was not a guitarist.

Consider that assertion for a moment. What do you suppose it means? That Ford was a pianist? That his musical tastes leaned more toward Big Band? That he was lacking in manual dexterity? Any (or all) of those explanations may be true, but in the context of the ad that my firm created for Pimentel, a small, family-owned guitar maker, it's a poetic way of pointing out that these handcrafted instruments of beauty don't roll off an assembly line. (You can take a look at the ad by clicking on the photo at the right of this column.)

It's not a big leap to come to that conclusion; anybody who knows about Henry Ford and his contribution to the Industrial Revolution would likely draw it. But as simple as interpreting the headline is, it does require involvement from the reader. That's what makes the ad work.

Voltaire once said, "The best way to be boring is to leave nothing out." That's one reason why ads tend to fall flat, at best, and annoy at worst--companies cram too much into them trying to make their case, or expect that they can open and close the sale in one fell swoop. But nobody wants to be told what to think. The best advertising is like a spark plug that leaves a small gap for the audience to fill in for themselves.

Leadership: Is It Better to Be Liked or Feared?

Fri, 11 Nov 2011 06:00:00 GMT

You've seen images of professional sports coaches screaming at slumped-over teams in locker rooms. Cut to the corporate boardroom, where you see a "terrible two" tantrum thrust upon employees.

Maybe you've experienced a mild case of power-mongering yourself, briefly believing that fear-based motivation would get things done. Then, feeling a bit remorseful, you did a 180 to overcompensate by offering an elaborate employee-appreciation breakfast, complete with chocolate croissants. A week later, you feel you've been taken advantage of, work is too relaxed, and you're losing support. Now you're questioning those French pastries. This yo-yoing between being a power player and a pushover-pleaser makes your perplexed staff wonder if you've fallen victim to pathological mood swings.

Human Resources: three types of people to fire immediately

Tue, 8 Nov 2011 06:00:00 GMT

I wanted a happy culture. So I fired all the unhappy people."
--A very successful CEO (who asked not to be named)

We (your authors) teach our children to work hard and never, ever give up. We teach them to be grateful, to be full of wonder, to expect good things to happen, and to search for literal and figurative treasure on every beach, in every room, and in every person.

But some day, when the treasure hunt is over, we'll also teach them to fire people. Why? After working with the most inventive people in the world for two decades, we've discovered the value of a certain item in the leadership toolbox: the pink slip.

FOMC Statements: Side-by-side

Mon, 7 Nov 2011 06:00:00 GMT

Corey Chambas, President & CEO of First Business Financial Services, Inc., posted the following article today. This is a side-by-side comparison of the November 2, 2011 to the September 21, 2011 FOMC statements.

Sales: How the Rift Between Sales and Marketing Undermines Reps

Mon, 7 Nov 2011 06:00:00 GMT

It's no secret that sales and marketing executives don't always see eye to eye.

In a recent Corporate Executive Board survey, sales executives' top terms for their marketing colleagues included "paper pushers," "academic," and perhaps worst of all, "irrelevant." On the other hand, marketing executives called out their sales counterparts as "simple minded," "cowboys," and flat out "incompetent." Strikingly, across several hundred sales and marketing responses, a full 87% were negative.

Management has long called for sales and marketing to bury the hatchet, but the requests often lack urgency and are generally met with indifference. That must change.

Operations: New Concealed Carry Law has Businesses Weighing Weapons Ban

Tue, 1 Nov 2011 05:00:00 GMT

On Nov. 1, Wisconsin's concealed weapons law went into effect, allowing individuals who passed a training course and cleared a background check to carry weapons with them at all times without breaking the law.

While the law does allow private businesses - as well as the state and municipalities - the right to ban concealed weapons from their properties, there are several rules businesses and organizations need to follow, says Bruce Deadman, an attorney with Davis & Kuelthau in Green Bay. For example, if a business decides to ban concealed weapons, it must post a sign clearly stating that. Businesses then also need to make sure they have policies in the event the rule is violated.

HR: Afloat in Files?

Mon, 31 Oct 2011 05:00:00 GMT

Information grows each day in every business department, particularly in human resources. With a steady stream of job applications, there's a good chance human resource staff is working extra hard to stay afloat in the sea of records and information.

To protect your business, proper records management is key. How do you keep up? What files do you keep? Should you do a mass file purge periodically to keep your office organized and stay sane?

HT: Promoting Employees Without Increasing Pay

Fri, 28 Oct 2011 05:00:00 GMT

What risks do small business owners run when promoting employees but not giving them raises? --L.C., La Canada, Calif.

Such a practice likely lowers morale and engenders resentment among employees who are asked to do more, or to take on more responsibility, for the same pay. You could also run into legal trouble if you're promoting someone with no pay raise and they're moving from an hourly position--where they are entitled to overtime pay--to a supervisory or management level where they get an annual salary. In most companies, a move up the ladder into management includes a pay raise, both to compensate for the added responsibility and to make up for the loss of overtime that might have been incurred when the employee clocked on and off the job.

Owners: What's my business worth?

Mon, 17 Oct 2011 05:00:00 GMT

Say you own a business. Maybe you're thinking of selling. Know what it's worth? Are you sure? Are you sure sure?

"Sixty-five percent of business owners don't know what their value is," says Scott Bushkie, president of Cornerstone Business Services in Green Bay. "I think that number is probably even low."

A number of factors contribute to why business owners don't often have a solid idea of how much their company is worth - including that they think they have the right information when they actually don't.

"Most businesses, smaller businesses and mid-market ones, are caught up in the day-to-day issues of growing, putting out fires, working in the business versus on the business," Bushkie says. "A lot of people have opinions about values and it's blown out of proportion. I think there's a lot of bad advice out there, and business owners don't spend the time or the money to bring in a specialist to give them an accurate picture."

Leadership: Strategic planning

Fri, 14 Oct 2011 05:00:00 GMT

For some time I subscribed to a magazine called "Bottom Line/Personal." This publication offers advice from experts in a wide spectrum of fields, from investments to relationships. Somehow, when I moved to Florida I failed to keep up with this helpful newsletter. I think I'll get back on their subscription list.

One Bottom Line article that I found in my files resulted from an interview of John Capozzi, who was then head of JMC Industries, an investment banking firm. The title of the article is "What Successful Executives Must Remember to Stay Successful."

His advice is neatly organized into four areas: managing, personal excellence, meetings, and positive thinking.

The article was published in l998, but nothing in it seems outdated. On the contrary, Capozzi's advice seems even more to the point now. Here are some of the key points in each area, along with my comments.

Managing
Your example is more important than your advice. Your employees watch you more than they listen, that's what I believe.

Owners: Fix a strained business partnership now

Sat, 1 Oct 2011 05:00:00 GMT

I'm a principal at a startup ad agency, working as creative lead and director of business development. My partner originally agreed--though not in writing--that I would get a 10 percent commission for finding clients. Now that I'm doing the work, he's suddenly concerned that my commission isn't fair because I'm a partner at the agency. His logic is that you're either a sales rep on commission or a partner who earns a salary. He wants an even division of monies, even though he's not doing an even division of the work. How can we resolve this fairly? --J.M.D., New York

Your question raises serious issues about the viability of your partnership, even before you've gotten your business off the ground.

The most fundamental misstep is failing to put your partnership agreement in writing. "Even if it's on a napkin, writing something down focuses attention on issues that must be discussed and crystallizes the relationship," says Los Angeles business lawyer C. Dickinson Hill. "Perfect foresight is rare, but everybody should recognize the need to address compensation issues upfront. If the partnership is to last, you should be able to discuss issues as they arise and each should be willing to do what is needed to keep the other partner involved. If not, perhaps this is not a good fit."

HR: Lower insurance costs with employee incentive programs

Wed, 28 Sep 2011 05:00:00 GMT

October 2011, Focus: Human Resources
Lower Insurance Costs with  Employee Incentive Programs
Wed, Sep 28, 2011

Done right, employee safety incentive programs can lower net insurance costs by keeping workers healthier through reductions in accidents and lost time injuries. Done wrong, such incentive programs can create peer pressure that discourages employees from reporting injuries.

In a review of OSHA mandatory injury reports from 2005-07, the Government Accountability Office (GAO) discovered widespread underreporting of workplace accidents. According to the report, 75 percent of health practitioners surveyed believe workers sometimes avoided reporting work-related injuries and illnesses because they didn't want to cause themselves or their co-workers to miss out on prizes. Conversely, 72 percent believe safety incentive programs motivate employees to work safer.

FOMC Statements: Side-by-Side Comparison

Thu, 22 Sep 2011 05:00:00 GMT

This is a side-by-side comparison of the September 21, 2011 to the August 9, 2011 FOMC statements.

Nominate Your Business for Madison's Best Places to Work 2012

Wed, 21 Sep 2011 05:00:00 GMT

Join Madison Magazine and WISC-TV for Madison's Best Places to Work 2012!

Any company, not-for-profit or government agency in Dane County and its surrounding counties is eligible to compete for the awards. The survey requires a minimal amount of company time. Overall scores for each award category will be based on employee responses to survey questions. Organizations with the highest overall scores in each category will be named as finalists. One overall winner will also be named as the "Best Place to Work."

Leadership: What should employees know about the company's finances?

Fri, 16 Sep 2011 05:00:00 GMT

You're the owner or senior manager of a small- to medium-sized privately-held business. One day, an employee asks you:

What are our annual revenues?

What are our gross profits?

What are our operating profits?

How much does the owner take out?

Oops. Are you ready for this? Do you have a company policy regarding financial disclosure? This month, I'll explain the pros and cons, and then leave the decision up to you. Among our TEC members, the pendulum swings from one end to the other on this issue. Here are some examples:

Sales: Frame your questions with context

Fri, 16 Sep 2011 05:00:00 GMT

Shortly after John Paul II became pope, he was interviewed by an Italian journalist, Vittorio Messori. That interview became the best-selling book, "Crossing the Threshold of Hope."

I read the book. It was memorable for many reasons. One in particular was the way in which the journalist asked his questions, or more accurately, "framed" them. His first question of the newly elected pontiff covered a page and a half...just the question! Salespeople could borrow a page from Messori's technique.

In the world of conducting sales interactions, questions should be framed, not simply asked. Why?

The information we're looking for is usually very different from the question we need to ask to get that information.

A point we want to communicate is often communicated more effectively if the point is not communicated verbatim.

We can sometimes leverage Seek Mode to tell the customer things about our company's expertise, experience, strengths, qualifications, etc. by communicating those things in the form of a question to the customer instead of a statement about us.

We can sometimes call attention to our competitor's weakness, deficiencies, lack of qualifications/expertise without ever mentioning them - directly or indirectly. In other words, the customer merely has to connect a few simple dots to draw the correct conclusion.

Framing is, simply, the art of adding context - and interest - to questions.

Here's a simple illustration.

Management: Blogging for business

Sat, 10 Sep 2011 05:00:00 GMT

Who knew that a blog post warning about the combustibility of oily rags could ignite a firestorm of web traffic -- on a corporate insurance blog? And yet the popularity of that 360-word article affirms the need that practical information is much needed in the marketplace, says Jean Van Den Brandt, vice president of marketing at SECURA Insurance.

"Especially in the insurance industry, which as a whole has not been an early adapter of social media," information matters, adds Van Den Brandt. "Before we started our blog, we needed to first know what our audience cared about and what they needed, so we used social media to listen first to what people are looking for and what they're sharing."

Last November, the Appleton-based insurance company launched its first business blog along with a social media strategy designed to help its agents feel comfortable sticking a toe in the social media waters. But rather than just roll out a new blog site, Van Den Brandt went to work creating step-by-step Webcast tutorials and invited agents at all 430-plus agencies to tune in and learn the ropes of social media.

HR: Social media in recruiting

Mon, 29 Aug 2011 05:00:00 GMT

Using social media like LinkedIn and Facebook to recruit employees is a lot like that big, button-laden TV remote control in your living room: You know there's a lot of capabilities at your fingertips, but it's tough to figure out how to use it effectively.

Enter Todd Nilson, the managing director of Social Syntax, a communications-consulting firm that helps companies integrate social media strategies into their marketing plans and other operations -- including employee recruitment.Nilson says there's no better time to hop aboard the social-media recruiting train. Many already do so; some statistics show that up to 72 percent of recruiters and hiring professionals use LinkedIn to recruit employees.

Sales: Call reports show what kind of salesperson you are

Wed, 17 Aug 2011 05:00:00 GMT

Regular readers of this column should understand by now my core mission: to turn the traditional vendor salesperson into a true business resource for prospective customers.

The difference between the two extends to everything you do at work. There's no clearer illustration than in how we approach sales call reports.

We may live in a paperless office today (hah!), but in whatever form they take - entered in a notebook, a tablet computer or from your smart phone - when we come back from our sales meeting we still have to fire off a report and send it up the chain.

And if we're operating as a business resource, that report will be about as different from a traditional sales report as an NFL team is from an elementary school flag football league.

The old way
The traditional sales call report is transactional and reactive. It mirrors the traditional sales mindset and traditional sales knowledge. Take a look:

HR: Ten tips to recruit the best grads

Tue, 16 Aug 2011 05:00:00 GMT

Struggling economy or not, filling an entry-level position with top talent can prove a challenge. Here, we offer 10 tips your organization can follow to attract and secure the best graduates in your field.

1) Know who you really want. Create a comprehensive wish list of attributes a successful candidate will possess. The list should include hard skills, such as academic degrees and work experience, as well as soft skills, such as style, personality traits, the ability to work in a fast-paced environment, and flexibility.

2) Get students interested early.

Management: Why Groupon lacks a viable business model

Tue, 16 Aug 2011 05:00:00 GMT

All right, you caught us. We're actually not making any money. In fact, we are really losing a lot of money."

This is the essence of Groupon's declaration last week that it will remove the controversial accounting metric called Adjusted Consolidated Segment Operating Income (ACSOI) from its financial statements. ACSOI essentially measures Groupon's profits before subtracting its subscriber-acquisition costs and stock option-based compensation. The metric was an attempt to put a thin veneer of respectability on what are extremely disconcerting profitability numbers for the company. In the first quarter of 2011, Groupon posted a net loss of $113.9 million. Yet, the company reported ASCOI of positive $80.1 million. In most recent quarter, Groupon's losses continued to mount as it begrudgingly abandoned the ACSOI metric amidst criticism and incredulity from the SEC.

Business owners: Saving for college or retirement - the new mid-life crisis

Mon, 1 Aug 2011 05:00:00 GMT

Like many, he spent his 20s, 30s and much of his 40s advancing his career and building businesses along the way. He put off having children until later in life so that he could provide more financial stability for his family.

In 2010, the crisis hit him. In this case, it wasn't about a fancy sports car or a sudden urge to make a career change. No, this was a crisis about the future -- a college education for his son, or a secure retirement for himself.

Moltz suspects this could be a new normal.

Leadership: Five ways to reinvent your business

Thu, 28 Jul 2011 05:00:00 GMT

No business can survive without undergoing change. Customer needs and wants change, and companies must keep pace with those changes.

This month I'm sharing the story of an international manufacturer headquartered in Janesville, Wisconsin. Its name is Hufcor. In 2009, I had the privilege of interviewing John E. Hough, former CEO, then age 90, who gave me a first-hand account of how the company became what it is today.

In 1900, John's father, Azel, founded Hough Shade Corporate in South Butler, New York. Its product, wood slat porch shades, made from basswood, was produced using equipment invented by Azel. In 1902, Azel moved his young company to Janesville where basswood was much more abundant. Azel's decision set the stage for a company culture that was versatile, pragmatically embraced and responsive to change.

Management: Project management involves focusing on the details

Fri, 8 Jul 2011 05:00:00 GMT

When Noah was directed by the Lord to build an ark, he was given a specific scope of work and detailed instructions on how to construct it.

This is not always true in business when you are required from time to time to submit a quote or respond to a RFP (request for price) or a RFQ (request for quote). Normally, the request details the work required and the timeline of the project. But in some cases the request is not at all specific.

Recently, I have spoken with local businesspeople in a number of industries about the challenges they face in quoting on the scope of work.

Technology: The right device and apps make the office wherever you happen to be

Fri, 1 Jul 2011 05:00:00 GMT

There is a lament about technology that usually begins with the anecdote "we put a man on the moon with less computing power than in today's digital wristwatch."

Just imagine what those engineers could have done with a smartphone - Houston, I think we have an app for that!

The workplace has seen the same kind of technological innovation, and there is no sign the pace of change will abate. In a little bit more than a decade, the phones have become a lot smaller and definitely a lot smarter; the apps are slicker and customizable; and the office is wherever you happen to have a combination of the two.

Need to run a meeting? No problem, grab your smartphone, tablet or laptop, fire up a couple of handy apps, and you can run the meeting. No one needs to know you are actually sitting in a beach chair in sunny Door County.

Survival in today's workplace means not whether you can meet those expectations, but how you will spend your dollars so that you can.

HR: How to make excellence an addiction

Tue, 28 Jun 2011 05:00:00 GMT

This is a new way to look at employee motivation, and it does not start with money.

It's great when employees know exactly what you want and have the persistence to stick with it until that goal has been met. When developing a culture of excellence, employers take a very different approach. They reward with praise all small steps in the right direction.

Decades of psychological research support this approach. Known as "operant conditioning," it uses positive reinforcement to shape thinking and behavior in the desired direction. The process must start with a CEO who has a clear vision, desire, and commitment to create a culture of excellence. Following are guidelines that organizations can use to make excellence a "positive addiction."

Sales: It's all in the presentation

Fri, 24 Jun 2011 05:00:00 GMT

Think about the last time you went to a movie. Or out to dinner. Here's one thing I can guarantee: You didn't call up the theater, ask what the price of their tickets were, and then pick a feature at random.

You didn't randomly quiz a restaurant hostess about the menu choices and then make a split-second decision to eat there.

Instead, your selection process may have looked a bit more like this. For a movie, perhaps you thought back to recent trailers you saw at the theater or on TV. You remembered some reviews. Or maybe you watched out for the new adaptation of that book you couldn't put down.

With a restaurant, you and your dinner companion probably thought about what kind of food you were in the mood for - steak? Asian fusion? Fish fry? Good old pizza? And you recalled the place your best friend was praising the other day.

The point is, even for just a two-hour investment of your life, you probably gave some real thought to the choice - and made a selection based on much more complex criteria than just the price of the meal or the show time at the multiplex.

Why should your customer be any different?

Presentations, not proposals
One of the core lessons I teach my clients is that, when it comes to selling the value of your organization to your prospective customer, the most important step isn't the proposal. It's the presentation.

FOMC Statements: Side-by-side Comparison

Thu, 23 Jun 2011 05:00:00 GMT

This is a side-by-side comparison of the June 22, 2011 to the April 27, 2011 FOMC statements.

Management: Resources available to help businesses expand overseas

Tue, 21 Jun 2011 05:00:00 GMT

For businesses looking to grow, Fred Monique has some simple advice: Look overseas.
More and more companies from across the New North are engaging in international trade and seeing results, says Monique, interim president of the Green Bay Area Chamber of Commerce and vice president of Advance, the chamber's economic development arm.

"Only 5 percent of the world's population lives in America. If you just stay domestic, you're not reaching a lot of potential customers," he says.

In 2010, Wisconsin companies recorded more than $19 billion in exports. Canada is the No. 1 country state firms export to, followed by Mexico. Wisconsin now ranks as the 18th largest exporting state, up from its 21st-largest rank in 2006.

"There's a market (overseas) for just about everything our area produces," says Monique, adding the top sectors are industrial machinery, electrical machinery, scientific instruments and medical devices.

Marketing: Beware of social media backfire

Mon, 20 Jun 2011 05:00:00 GMT

In 1986, I was a long-haired, bearded 22-year-old with a lousy job that paid irregularly. I was also engaged and preoccupied with becoming responsible, not to mention passing muster with my soon-to-be father-in-law. That meant, among other things, securing life insurance to take care of my bride if some tragedy were to befall her prince.

It was about then that an insurance agent named David was referred to me. At 27 or 28, David was a lot older. I remember being mystified as to why he would waste his time patiently explaining to a young kid with few prospects the difference between whole life and term. I didn't know anything about the insurance business. Based on the puny premiums I'd be paying, I knew David wasn't going to retire on such clients as me.

Fast-forward 25 years. David is still my insurance agent. The insurance portfolio he helped me--and many others like me--build over the years has become somewhat sizable. Over the past two decades he and I have played basketball together, our wives have volunteered together, and our daughters attended school and took ballet classes together. David and I once found ourselves whittling away the hours sharing driving duties in a 26-foot truck filled with props for a ballet performance.

Although my relationship with David is unique, our story is not. For all human history, business has been based on relationships. Buyers and sellers have followed a similar pattern of nurturing family and community ties as they traded. Commerce has always been based on proximity and goodwill.

Summer Reading: Five management classics

Fri, 17 Jun 2011 05:00:00 GMT

Although Peter Drucker was a self-described workaholic, he did take time off each summer to hike amid the peaks of Colorado, reflect on the previous year's successes and failures, and, of course, read.

As you head to the beach or the mountains with your own stack of books (or your Kindle, Nook, or iPad), keep in mind five classics about management and leadership that Drucker himself loved. All appeared before his own landmark The Practice of Management was published in 1954. "Every one of these books," Drucker noted, "laid firm and lasting foundations."

Management: How to catch a liar

Fri, 17 Jun 2011 05:00:00 GMT

In business, there is no shortage of lies. People tell them at all levels--sometimes to seek a payoff and other times to avoid responsibility, some lying with guilt and others lying with a habitual delight.

But the complexity of business makes lies hard to detect. In business settings, liars manipulate people and evade giving answers, so they easily fall under the radar. One way to deflect liars is to look for and understand their behavioral clues, or use what's called the entrapment defense, which is when the liar confirms a statement that the speaker merely assumes to be true.

Leadership: Focus on what you can control

Fri, 10 Jun 2011 05:00:00 GMT

"We live in an uncertain world." How many times have you heard that? Every time I hear it I wonder about a "certain" world - whenever did that exist? This line of thinking leads me to ponder related words, such as "trust" and "security."

Security is defined by Wikipedia as a degree of protection against danger, damage, loss and crime. It involves a separation created between the assets and the threat. (It is important to remember that word "degree" is in the definition.)

We have computer security, supposed protection against cracking, hacking and phreaking. Most of us spend money to buy this kind of security, yet few of us escape these threats altogether. I guess we comfort ourselves by believing that our hacking, cracking and phreaking experiences would be a lot worse if we didn't have those security systems. No way to know for sure, is there?

HR: Seek common ground

Fri, 10 Jun 2011 05:00:00 GMT

"My work group seems to be the always caught in the middle between other work groups. We provide operational support to a number of departments. As a result, we know what's going on (both good and bad) in a number or work areas. The problem is when we raise concerns about this or that issue or process, we get blamed! Sometimes it starts to get a little personal like, "Mind your own business." We get to clean up their messes and then they blame us for pointing out the problem? What am I missing here? Shouldn't they be thanking us?"

HR: Improving business emails

Wed, 1 Jun 2011 05:00:00 GMT

Three suggestions for improving business e-mails

Millions of people use e-mail at work and at home almost every day. But a funny thing happened on the business world's way to the information superhighway: It left etiquette standing by the side of the road.

This lack of "netiquette" is no small matter. According to a survey of 416 companies conducted by the American Management Association and the ePolicy Institute, 26 percent of employers have fired employees for abusing e-mail. And studies show that e-mail abuse conservatively costs U.S. companies millions of dollars a year in lost productivity, breaches in confidentiality and lawsuits.

Management: Five ways business owners cope with rising costs

Wed, 1 Jun 2011 05:00:00 GMT

If you build it, cook it, sew it, ship it, or import it, chances are your cost of business has spiked over the past two years. Even Internet entrepreneurs are feeling the sting of a weak dollar. "As we expand our coverage of hotels in Europe, we pay people in euros and pounds, but we make money and raise money in dollars," says Elie Seidman, chief executive of Oyster.com, a hotel research and booking website in New York with 40 employees. As commodity prices rise by double-digits and the greenback falls, business owners across industries are struggling.

Sales: What to Look for in Candidate Interviews

Fri, 13 May 2011 05:00:00 GMT

Not long ago in these pages I laid down my own commandments (as I referred to them) of sales leadership. One of them - hire wisely, not well - seemed to touch a particularly sensitive nerve among business owners and senior sales management. Let me take the topic a little deeper.

Sales leaders often attempt to hire "well" instead of wisely. In other words, they place too much stock in a candidate's claimed track record and number of customers and contacts that he or she will bring along into the new job. These claims virtually never pan out.

Management: Make Meetings Matter

Fri, 13 May 2011 05:00:00 GMT

How many times have you heard someone say, "I'd really love this job if I didn't have all of these meetings!"

The topic of time management came up during an appointment with a client who was struggling to "get it all done." Her average workweek tops 70 hours. She reluctantly admitted that she never eats lunch and only uses two of her five weeks of vacation. A quick evaluation of her typical week revealed that 40 percent of her time was allocated to recurring scheduled meetings. With that insight, I then asked her to:

Leadership: What Makes a Leader?

Thu, 28 Apr 2011 05:00:00 GMT

16 core qualities that successful leaders share

It goes without saying that CEOs are leaders, but how do you know you are truly leading? Thousands of pages have been written on the subject, more than anyone can find time to read. This article identifies 16 core qualities that characterize successful leaders.

1. Vision leaders know where they are going. They see the big picture, determine how their organization fits into it, and translate that knowledge to their personnel.

2. Trust. People follow those they trust. Managerial consistency and follow-through are essential for establishing trust.

Human Resources: This Time, it's Personal

Thu, 28 Apr 2011 05:00:00 GMT

Managers plagued by bad staff morale and sputtering productivity should go take a hike -- around the office.

With so many businesses hunkering down in belt-tightening mode, freezing salaries and even laying off workers, low employee morale and it's ugly step-cousin, reduced productivity, just might be unwelcome visitors lounging around your company. So what's a manager or supervisor to do?

Management consultant Drew Stevens says there's a simple solution: Put on some comfortable shoes, take a stroll around the office and get personal. "The key thing is getting to know staff -- be visible," says Stevens, who's been providing management and employee development advice for more than 20 years. "We call it management by walking around.

FOMC Statements: Side-by-side Comparison

Wed, 27 Apr 2011 05:00:00 GMT

This is a side-by-side comparison of the April 27, 2011 to the March 15, 2011 FOMC statements.

Sales: Build Rapport Quickly

Tue, 19 Apr 2011 05:00:00 GMT

To a small business owner, one negotiation with a prospect can make or break the company. With so much at stake, quick rapport-building becomes a critical skill. And what is rapport? In business, it's simply a framework for information transfer.

When you walk into that meeting, you need to know more about the people you're meeting with than they know about you. That knowledge is power and provides a distinct advantage. Everything you know about the people who are there to evaluate you will impact how you approach them. It will guide you in knowing when and how to cause stress--for example, to ratchet up the level of concern about a problem you can fix--and when and how to counter that stress.

Management: Spend Time with Your Staff

Mon, 18 Apr 2011 05:00:00 GMT

The most important thing you can do to empower your staff is give them a voice and listen to their ideas. As entrepreneurs, sometimes this can be hard as we are running 100 miles per hour and always thinking about the future. To ensure that people feel valued and you hear their ideas, I recommend scheduling formal, recurring meeting times with your staff every two to four weeks. A quick 15- to 30-minute one-on-one talk can keep you informed and keep your team members motivated. It helps us monitor (and continually improve) performance.

HR: Is an associate's degree the way to go in tough economic times?

Sun, 10 Apr 2011 05:00:00 GMT

In today's economic climate, more job seekers are pursuing technical college education. Attracted by projected salary stats, Amy Goebel found herself going back to Moraine Park Technical College two years ago. With her new associate degree in marketing, she now finds herself in high demand.

"I wanted more for myself and wanted a challenge. I know that if I wanted to expand in my professional life, I would also need to increase my education and earn the degree I had started earlier," says Goebel, a 28-year-old sales and customer service representative at Wright Brothers Paper Box Co. in Fond du Lac. "It was worth the many late nights and working long, full-time hours while attending school full-time."

Technology: Securing Computer and Office

Fri, 1 Apr 2011 05:00:00 GMT

You're on the verge of launching your business, and whether you have a home business or are leasing office space, you must take certain security measures for your computer and office facility. Two of the common mistakes made with either computer equipment or the data contained within is the failure to back up important files (when various vendors can make it easier) and the lack of technology savvy associated with putting bank account information (or Social Security numbers) in e-mail transmissions.

Such carelessness actually happens, which makes information technology yet another area that sole proprietors should not wade into alone. No matter how technically proficient they believe themselves to be, the all-important area of computer security should be treated like accounting or law. "A lot of entrepreneurs make the mistake of trying to do everything themselves," noted Bryan Chan, president and founder of SupraNet, "but computers and IT and Internet security are really no different than those other professions."

FOMC Statements: Side-by-Side Comparison

Tue, 15 Mar 2011 05:00:00 GMT

This is a side-by-side comparison of the March 15, 2011 to the January 26, 2011 FOMC statements.

Marketing: How to Use Daily Deal Sites to Drive Sales

Mon, 14 Mar 2011 05:00:00 GMT

What if there was a way to drive hundreds (or even thousands) of customers to your business, absolutely free or charge with no risk involved? This is the exact sort of advertising that deal of the day sites such as Groupon and LivingSocial are promising. These sites partner with small business to establish daily deals and coupons such $20 for $40 worth of food at a restaurant and then push out the deal to potential customers through their website and email list, all targeted towards customers in a specific area. Small businesses are seeing huge results from these daily deal sites as they continue to emerge.

Five Things to Consider About Your Current Banking Relationships

Mon, 14 Mar 2011 05:00:00 GMT

Surviving the Great Recession to this point is an achievement for any business. But now what? Can businesses rest easy knowing that the banks they have partnered with for the last 10 years are going to be there for them for the next 10 years? Banks are under increased scrutiny to reshape their overall portfolios, and that may mean not including certain businesses in their plans moving forward. Therefore, developers and business owners should consider the following when evaluating their current banking relationships.

Leadership: The Art of Decision Making

Fri, 4 Mar 2011 06:00:00 GMT

In a 2006 Teradata survey, 71 percent of 1,200 leaders stated that poor decision making is a serious problem. If leaders were asked in 2011, they would continue to say that decision making is a serious problem.

Effective leaders know that decision making is both art and skill. It includes selecting the method of decision making, preparation, process, and communication.

The method:
Before engaging in a decision making process, leaders need to define for themselves and for the organization the method of decision making they will use for any given issue.

This clarity speaks to the art of decision making. Leaders may utilize autocratic, consensus, democratic and consultative methods to address an issue. There are appropriate situations for each method with both advantages and disadvantages.

Technology: 'To the Cloud'

Fri, 4 Mar 2011 06:00:00 GMT

Because of a new concept, "cloud computing," the virtual office has just expanded. You can now access your computer system from anywhere in the world, while using project management, CRM (customer relationship management) and other software packages.

The cloud computing model has changed the rules of the game. All servers, networks, applications and other elements related to data centers are available via the Internet.

The cloud model differs from traditional outsourcers in that customers don't hand over their own IT resources to be managed. Instead they plug into the "cloud" for infrastructure services, platform (operating system) services, or software services, treating the "cloud" much as they would an internal data center or computer providing the same functions.

In a recent Oracle white paper, the NIST (National Institute for Standards) identified the five essential characteristics of cloud computing.

Marketing: Strategy Before Social Media

Sun, 20 Feb 2011 06:00:00 GMT

How can entrepreneurs use social media to increase their odds of survivability? Based on the advice of local experts, it comes down to first having a marketing and an e-business strategy, and then figuring out which social media tools -- Facebook, Twitter, Flickr, or any of the entrepreneurial networking sites like LinkedIn, Entrepreneur Connect, or Startup Nation -- can be used to execute your strategies.

While small businesses will continue to devote most of their resources to their websites and e-mail marketing, social media is more visible on their radar screens. But without first establishing a marketing and e-business strategy, which should be fundamental pieces of any modern business plan, social media tools will be misapplied. "Without a marketing strategy and then a concurrent e-marketing plan, you probably shouldn't jump into your social media strategy because you have to know what your content approach is going to be," advised Paul Gibler, the "Web Chef" behind ConnectingDots, LLC.

Management: How to decide to whom to give

Tue, 15 Feb 2011 06:00:00 GMT

Many nonprofit organizations depend on financial and manpower support from area businesses.

And many businesses find that giving back is an integral necessity for them as well.

"Our belief is that we need to be involved in the communities in which we work," says Diane Roundy, director of business development at Schenck in Appleton. "If one of our employees is involved [in a charitable activity], we support them, with time to be involved and financial support to that charity, if possible."

Roundy says Schenck looks at its corporate giving each year to determine where dollars and volunteer time will go.

"A lot of it has to do with what our clients are involved with," she says. "We try to patronize our clients and what they ask us to get involved in. It's very client-driven, along with the needs of the community. We encourage our employees to be involved and volunteer in the communities which we serve. We provide them time to be involved."

"Time to be involved" can include time during work hours or time during evenings and weekends. Each year, Schenck surveys its 500 employees to determine how many hours and where their employees are giving time to not-for-profit organizations.

"Our strategy is that where there are gaps, someone not volunteering, we try to find someone to get involved and represent Schenck," says Roundy. "It's very important to Schenck. We are very relationship-oriented, and this helps our people get out and get to know others in community."

Roundy says Schenck also helps its business clients with transition planning and year-end giving.

Management: The trials and triumphs of operating overseas

Tue, 15 Feb 2011 06:00:00 GMT

Nothing about establishing an overseas presence came easy to Hankscraft Inc. And with labor costs rising meteorically in the last few years in China, where the company employs 300 workers, company president Mark Blume knows he still faces some keen challenges.

But Blume, who spoke on "Strategies for Establishing and Managing Your Overseas Office" on Feb. 8 as part of the monthly Madison International Trade Association (MITA) meeting, says that China has definitely been a land of opportunity for his company, and he has more than a little advice for people looking to mimic his success.

High Tech: SWIB makes a move to support Midwest venture capital firms

Tue, 15 Feb 2011 06:00:00 GMT

Spurred by its own 2010 analysis of potential deals in Wisconsin and the Midwest, as well as changing fund-raising patters among some of the nation's top-performing venture capital firms, SWIB will commit $80 million to an investment portfolio designed to engage some of those "top 30" funds.

See page 21 of the following link.

Sustainability: Smart thing to do

Tue, 15 Feb 2011 06:00:00 GMT

It's "lights out" at Springs Window Fashions in Middleton, where intermittent darkness is a shining example of the company's commitment to being green.

The window treatment manufacturer recently installed motion-sensing lighting in their warehouse as part of an ongoing effort to maximize energy and resources.

See page 24 on the following link.

The Business Journal Book of Lists

Fri, 11 Feb 2011 06:00:00 GMT

The Milwaukee Business Journal released its 2011 Book of Lists. Access this online.

Marketing: Creation of perfect web page starts with smart use of tags and keywords

Thu, 10 Feb 2011 06:00:00 GMT

Yes, your pages should be written primarily for your site visitors; however, it's the search engines that you need to convince to help bring targeted traffic to your site.

See page 4 on the following link.

Human Resources: Use your 2011 strategic plan to chart a course for hiring

Thu, 10 Feb 2011 06:00:00 GMT

As a small business owner, you need to deal with many things, and one of hte most challenging can be human resources. When do you hire people? When do you invest in training, and when do you eliminate positions?

Management: Dad provided valuable lessons for business as well as life

Thu, 10 Feb 2011 06:00:00 GMT

Whatever my siblings and I craved, he woudl remind us that diligent hard work would likely provide it far faster than wishing and waiting.

See page 6.

Management: Numbers don't lie

Fri, 4 Feb 2011 06:00:00 GMT

Strip away emotion, use data to discuss performance

recently started working with a client to increase the effectiveness of its sales force. The main problem was that most team members were coasting and in maintenance mode. They weren't working hard enough to add clients and grow sales.

One salesperson in particular stood out: a 26-year old whom I'll call Kelly. Kelly is what's known in the sales world as a farmer. That is, she maintains relationships with existing clients and takes orders. In her position, the goal is to strengthen and deepen those existing client relationships, while bringing on new clients. But sales under Kelly hadn't budged from where they were before she joined the company (2.5 years earlier). Despite this fact, Kelly frequently complained about not making enough money.

As part of my work with this company, I sit in on weekly one-on-one meetings (as needed) between the sales manager and each sales rep. My role is to help move the sales ball forward, which is to say I am there to assist in helping develop and focus both the sales manager and the sales reps on the things that drive performance.

Going into this meeting I knew Kelly's performance was poor. I also knew she had a poor work ethic and a poor attitude (bad combo).

So imagine my surprise when Kelly turned to me and said, "Phil, I don't know if anyone's told you, but I need to make more money."

While I didn't expect her to bring up this topic at our first one-on-one, I was thrilled she did. This gave me the opportunity to model the behavior that I advocate for all of my clients and this sales manager in particular.

Human Resources: Communication is critical

Fri, 4 Feb 2011 06:00:00 GMT

Technical skills not enough for managers

Question:
"Many of my co-workers have engineering or other technical backgrounds. I've noticed that it's hard for some of them to make the move from independent contributor to manager because their communication skills don't seem to have kept pace with their technical skills. They seem more comfortable doing the work than helping others do the work. Now, this isn't true in every instance, but the tendency seems to be toward "black and white" messages, consistent with a strong facts orientation. I wonder if you could write about this issue."

Answer:
I'm sure many readers can resonate with this issue. Many organizations promote from within, using a process in which the best "doer" is tabbed to be the leader when a managerial vacancy occurs. Stating the obvious, "doing" and "leading" are different endeavors, requiring different approaches and competencies.

The best contributor does not always make the best leader, as we all know simply by looking at the history of top-flight athletes who have been given a shot at managing or coaching. The list of people who've successfully managed the transition is short. Pat Summit, the terrific women's basketball coach at the University of Tennessee comes quickly to mind.

Conversely, the list of unsuccessful transitions is lengthy, including some of the biggest names, including baseball players like Babe Ruth and Ted Williams, football players like Bart Starr and Herman Edwards, and basketball players like Isiah Thomas and Earvin "Magic" Johnson.

The Center for Creative Leadership (CCL) has documented that in terms of "rising star" leaders with whom they have worked who later became "plummeting comets," 80 percent of them share a common Achilles' heel: an "interpersonal flaw or deficit." So, this is a common, widespread challenge.

Think about it for a moment. Effective communication is a skill that can be used in many one-on-one or group conversations, discussions, etc. in the workplace, including:

FOMC Statements: Side-by-Side Comparison

Thu, 27 Jan 2011 06:00:00 GMT

This is a side-by-side comparison of the January 26, 2011 to the December 14, 2010 FOMC statements.

Sales: The 8 Buyer Personas & How to Sell to Them

Wed, 26 Jan 2011 06:00:00 GMT

A while ago at a conference I had dinner with two people. The first, (we'll call her Janine) I had known since we worked together six years earlier. The second person (Ed), Janine and I had just met.

Janine described a sales challenge she was facing. She'd been working with two prospects at two different organizations, one for over a year and one for almost two. The typical sales cycle is 6 to 9 months, and these were both well beyond. She felt she was nearing a sale with both, but for all she knew, "nearing" might mean a year or two to go.

This is a fairly common sales challenge: The sale looks good, but it's taking forever. Janine happened to be facing two at the same time.

As we talked, I asked Janine a number of questions. She believed that in both situations the buyers:

Strategies: Serious Steps to Save Paper

Mon, 10 Jan 2011 06:00:00 GMT

Remember the predictions just a few years ago that technology would turn us into a paperless society? It doesn't look like that will happen anytime soon. The American Forest and Paper Association reports that the average American uses approximately one 100-foot-tall Douglas fir tree in paper and wood products per year.

In the office, the average American worker uses 10,000 sheets of copy paper each year, according to the Lawrence Berkley National Laboratory. That's 4 million tons of copy paper used annually. In fact, the typical business will generate approximately two pounds of wastepaper per employee per day.

While some might argue that this is good news for a paper-making state like Wisconsin, the reality is that paper waste has a tremendous impact on office costs, productivity and our environment.
"Paper and paper usage is really a hiding place for huge amounts of time, effort, inefficiency and costs," says Greg Lake, president and CEO of The Lake Companies, a Green Bay-based company that helps manufacturers leverage technology in innovative ways to become more efficient and effective. "The right technology can produce dramatic reductions in paper use as well as saving time and hard dollars that are hiding behind that paper."

Sales: The Perfect Cold Call

Fri, 7 Jan 2011 06:00:00 GMT

"How are you?" A harmless enough phrase, right? Heck, without it, 80 percent of all phone calls would never get started.

It seems to work as an ice breaker when we call our friends, colleagues and others that we know, so why not use it as an ice breaker on a cold phone call? Apparently that's how most cold-calling salespeople think since that's how the vast majority of cold calls start...to utterly disastrous results.

Leadership: Generation Y

Fri, 7 Jan 2011 06:00:00 GMT

Over the summer, I had the privilege of working with two eager interns (hired by one of our clients), each wearing a flashing neon sign on their foreheads....the one we talk about with leaders we support: MMFI. If you don't already know....give it some thought. Make Me Feel.......I know, you've got it. Yes! IMPORTANT!

On the first day of their three-month job, the president of the company asked to meet with each of them, individually. His conversation was informal, focused on learning about them and on telling them a few things about himself. The impact was significant. These two interns were amazed that the president would take time to talk to them. The exact words of one of them, "I felt important when I was talking to him." If a first impression is a lasting impression, then they will remember how important they felt....for a long time.

Survey of Business Owners Shows Growing Optimism

Tue, 21 Dec 2010 06:00:00 GMT

When I am asked how the business outlook for Northeast Wisconsin is, I have trouble putting what I hear every day when meeting with clients and prospects into words. I am impressed with the resilience of Northeast Wisconsin business owners and their optimism regarding the future for their companies.

We set out a few years ago to survey business owners to find out what factors contribute to their outlook on the economy and which of those factors impact them the most.
The report, known as the First Business Economic Survey of Northeast Wisconsin, highlights the findings of the survey which was conducted by the University of Wisconsinfs A.C. Nielsen Center for Marketing Research in September and October of 2010. The survey was sent to 6,711businesses in Northeast Wisconsin that were reported to have one or more employees. It was addressed to the CEO, CFO, President, and/or business owner.
The survey asked respondents to evaluate the actual performance in 2010, and predict the future projected performance in 2011on eight key economic indicators: Sales Revenue, Profitability, Total Operating Costs as a Percentage of Revenue, Capital Expenditures, Number of Employees, Overall Wage Change, Change in Pricing, and Operating Capacity.

The 2010 survey identified the following key findings:

The percentage of firms reporting increased sales revenues jumped from 20% to 50% in 2010 and the percentage of firms reporting increased profitability increased 12.5% to approximately 45%. Northeast Wisconsin businesses are optimistic and project this upswing to continue into 2011.

As more businesses are reporting increased profitability, internal operations are improving with increased capital expenditures and job growth. Approximately 77% of businesses had unchanged or increased spending on capital expenditures in 2010, up from 62% in 2009. Similarly, over 75% of businesses indicated maintaining or increasing the number of employees in 2010 compared to 58% in 2009.

Although many key indicators are up from 2009, they do not exceed the pre]recession levels reported in 2008. Almost 43% of businesses did not meet their self]imposed expectations in 2010. Both sales revenue and profitability decreased by approximately 40% of Northeast Wisconsin businesses in 2010. On top of these difficulties, 43% of businesses reported increased wage costs and 48% reported increased operating costs as a percent of revenue.

Businesses self]reporting into the manufacturing industry reported the biggest change in performance year]over]year. Approximately 68% of manufacturing firms reported increased sales in 2010 compared to 17% in 2009. Profitability increased for 49% of manufacturing firms compared to 30% in 2009. As a result of increased performance, 37.5% of manufacturing firms reported an increased in employees in 2010 compared to 13% in 2009.

Businesses reported high capacity utilization, with 80% of businesses reporting that they are operating at 70% capacity or higher.

So what does this all mean?
Clearly there are still challenges out there in this economy, but the overwhelming attitude of the companies surveyed shows that the economic performance in 2010 makes them feel a lot better about their prospects for 2011.

As far as a holiday wish list of what still needs to happen to bring us back to prerecession levels of production, hopefully elves Johnson, Ribble and Walker can deliver:

An extension of the tax cuts for 2011? (sounds like a version of this is eminent as of this writing)

A further extension and reallocation of the improved SBA program enhancements for 2011 to help the small business owners get access to the necessary capital they need to run their businesses?

A reasonable level of regulation applied to banks so we can continue to lend to the small businesses that need our help?

And just to prove the season is not all about wants, some holiday thanks are in order for the companies that helped create the optimism the region holds onto. So thank you Oshkosh Corporation, Marinette Marine, Mercury Marine and every other company that has kept their work in Northeast Wisconsin to help make the region stronger.

Enlightened Leaders Leverage Creativity

Mon, 20 Dec 2010 06:00:00 GMT

I recently participated in two corporate strategic planning retreats. Both followed a conventional agenda - define the mission, vision, values, strategic goals, etc. - and each facilitator demonstrated appropriate sensitivity to our opinions, ensuring that all board members' voices were heard. Their differences emerged when roadblocks developed requiring creative-thought energy.

The first facilitator employed a traditional, five-step strategy including, 1) define the problem; 2) identify criteria; 3) gather and evaluate data; 4) list and evaluate options; and 5) select the best option. We progressed effortlessly through the first three steps and then stumbled when hitting step 4. The facilitator's response was to break us into smaller groups, charging us to brainstorm ideas and saying, "It's time to turn off your left brain and only use your right brain."

The second facilitator took a vastly different approach. We were asked more thought-provoking questions and our responses were captured in a matrix. The questions were simple:

What is your understanding about this situation?

What actions do you think are needed to succeed?

Who (person or company) has overcome a situation like this before?

What actions are needed to succeed?

Each answer was assigned a provisional meaning so that as new information surfaced, it was captured and recorded on the matrix and easily shared with the group.

Quick Response (QR) Codes

Mon, 20 Dec 2010 06:00:00 GMT

Visitors to FaceBooth Fox Cities in September saw an unusual sight in each exhibitor's displays.

At the back of each display was a black-and-white grid that looked like a crossword puzzle, or an elementary school maze worksheet.

Hold up a smartphone with the right software, however, and the mobile device can make a phone call or go to a web site.

Quick Response codes -- QR for short -- have been popular in Japan for about a decade, but are now appearing in this country. They are similar to bar codes or micr codes, but being two-dimensional can include more information.

"Signs and graphics work for you 24/7, even when you aren't there," says Larry Obermann, owner of Fastsigns in Green Bay. "They tell people who you are and what you do -- now, with QR codes, that effort is taken even further.

"There are many people who haven't even heard of QR codes, or don't have a smartphone themselves. Still, they want QR codes included on their signs and graphics to be able to generate interest and to reach their more tech-savvy customers -- potential and existing."

Mobile devices with QR code-scanning software can scan QR codes that tell the device what to do, including going to a Web site, making a telephone call, sending an email or text message, or encoding a Twitter tweet.

While color is used in some QR codes, most are black and white.

No Time Like Now for Team Building

Mon, 20 Dec 2010 06:00:00 GMT

Economic reality means many businesses no longer can afford traditional team-building outings. But can they afford not to? Steve Hirt has just learned that you can't put a price on investing in building personal relationships. The president of Optima, a De Pere-based consulting company, is smack in the middle of a difficult season that seemed to come out of nowhere.

"It hit fast and hard, and our heads are swimming" says Hirt, who just announced to his staff of 10 that it was necessary to temporarily reduce wages. At first, his voice sounds defeated. But as he talks about the team-building events that have created a close-knit family, there is a spark of hope.

"I am amazed at how our people are leaning on and supporting each other in a way that I believe is only possible because we intentionally built trust with our team."
Many companies like Optima may cut back on expensive team-building outings, but wouldn't dream of cutting out meaningful ways to build morale among staff.

Manufacturing is the bright spot in southeastern Wisconsin's economic outlook

Mon, 20 Dec 2010 06:00:00 GMT

A majority of manufacturers in southeastern Wisconsin have posted revenue gains in 2010 and most are optimistic about future gains next year, according to the 2010 First Business Economic Survey. The survey was conducted by First Business Financial Services Inc., the corporate parent of First Business Bank-Milwaukee.

FOMC Statements: Side-by-Side Comparison

Wed, 15 Dec 2010 06:00:00 GMT

This is a side-by-side comparison of the December 14, 2010 to the November 3, 2010 FOMC statements.

Employment Law: New Employment Laws you need to Know, and Comply with.

Tue, 14 Dec 2010 06:00:00 GMT

Ripping on a supervisor on your Facebook page, which led to the firing of a Connecticut woman and her subsequent complaint before the National Labor Relations Board, might well be next year's point of employment law. But there is plenty of new employment law created in 2010, and local attorneys Cynthia Van Bogaert of the Boardman Law Firm and Meg Vergeront of Stafford Rosenbaum, both well versed in employee benefit law, stepped up to offer their compliance advice.

Employers must make quick adjustments to respond to changes brought about by the Patient Protection and Affordable Care Act. According to Van Bogaert, employers are scrambling to identify the employee benefit plans that are subject to the new law, and that's not always straightforward. "Say you have a wellness benefit and you find that it is subject to health care reform, and you really didn't think of it as a benefit plan before," she explained. "There are other laws like ERISA and COBRA that you need to think about with respect to these plans."

In addition, there are employee notices and employer reporting requirements, including special enrollments and a new requirement to report the aggregate cost of employer-sponsored coverage on the W-2 form, among other record-keeping requirements.

Compliance: It's a good time to look at all health-related compliance issues, not just those linked to your major medical plan. Employers should properly identify the plans that are subject to various provisions and requirements in the new law. "It's really a provision-by-provision analysis," Van Bogaert said.

Also related to "Obama Care" requirements, there are certain notices that need to be sent out regarding things like the removal of caps on lifetime benefits, non-grandfathered health plans, and the like. Employers with fully insured plans need to work with their insurers to find out who is sending which notice. There are a couple of cases in which certain employees and their dependents are given the right to enroll, have a 30-day window to enroll, and the employer needs to figure out who is sending out that notice. "Are the insurers going to be sending out the notice?" Vergeront asked. "Are they going to be putting the notices in the plan document, itself?"

Compliance: Typically, the insurers make the notifications, but Vergeront said it doesn't matter which party fulfills the obligation, as long as someone fulfills it. "Typically, an employer is going to be responsible for doing what its plan is obligated to do," Vergeront noted, "so that is where the notice obligation comes from and that's why you want to coordinate, if you are fully insured, with the insurance company to see what notices they are going to do and what notices they are not going to do."

Employment Law: New Employment Laws you Need to Know, and Comply With

Sun, 12 Dec 2010 06:00:00 GMT

Book Review: "The Power Formula for LinkedIn Success: Kick-Start Your Business, Brand & Job Search"

Fri, 10 Dec 2010 06:00:00 GMT

Milwaukee businessman and passionate LinkedIn user Wayne Breitbarth has trained nearly 10,000 business people on how to effectively use LinkedIn to increase and grow their businesses. Now, after garnering the nickname "LinkedIn Guru" from many of those he has helped, Breitbarth has presented his knowledge in his new book: "The Power Formula for LinkedIn Success: Kick-Start Your Business, Brand and Job Search." In the book, Breitbarth explains why LinkedIn needs to be a part of every professional's networking arsenal. Readers will learn how to create a compelling profile, who to connect with, and the importance of using key words to increase the success of LinkedIn search tools. He also presents a short start-up and weekly maintenance plan for readers to deploy after reading the book. The book is available on Amazon.com for $16.95.

Dane County economy: Some businesses 'are holding their breath'

Fri, 10 Dec 2010 06:00:00 GMT

Local business leaders are bracing for another difficult year, the head of a prominent Madison insurance company told a forum at Monona Terrace on Thursday.

"I think 2010 is going to be really tough," said Mike Victorson, president and chief executive of M3 Insurance.

Human Resources: Training Wheels

Fri, 10 Dec 2010 06:00:00 GMT

Traditionally, companies invest in new technology, new products and services. But how many invest in training programs that pay immediate and long-term dividends?

The answer: not as many as it should be.

There are three training programs beyond the basics that every small and large company needs to add to their training portfolio. They are: ethics, sexual harassment and negotiation/conflict resolution. All three of these programs can reduce the potential of negligence claims and lawsuits.

Let's look at how each of these can improve your firm's working environment, morale and culture.

Golden Angels Network Director Sees Significant Uptick in Quantity & Quality of Strategic Buyers

Wed, 17 Nov 2010 06:00:00 GMT

Tim Keane is the Marquette University Entrepreneur in Residence, the director of the Golden Angels Network and a friend of the firm. Tim has bought and sold several companies and also works as an independent consultant with a special focus in business
intelligence, growth strategy and harvesting value.

Tim sent me a copy of his latest e-mail to members of the Golden Angels. I thought our clients would find it interesting, so I asked Tim if I could pass it along:

"I've seen a significant uptick in the quantity and quality of strategic buyers sniffing around portfolio companies - ours and others - in the last 30-45 days. I've taken the time to talk to several substantial VCs who confirm, in the words of one, that strategics are 'out in force across a broad industry spectrum' seeking to buy companies at an earlier stage and at a level he has not seen 'in at least ten years.' My own qualitative data suggests the same thing."

How You Do Business: Do you have a Code of Ethics?

Mon, 15 Nov 2010 06:00:00 GMT

Whatever the size of your business or how many employees you have -- even if it's just you -- it is important for a business to have a set policy in place regarding the ethics and conduct that will be the standard for that business, area professionals say.

"Your reputation as a small employer is one of the things that sets you apart from the some of the other employers who might be able to provide a product at a smaller cost," says Pam DeLeest, senior consultant in the Fox Cities Office of The HS Group. "How you deal with customers, and the quality of your response in handling complaints and problems, sets a small business apart from larger employers. You need to look at costs, but your reputation is everything.

"All businesses should have some type of code of ethics, but it's even more important that a small employer have one. It should not be implied, but it should be talked about with all employees and be followed by all employees from the top down."

Performance Reviews: Dreaded Conversations can be Productive Opportunities

Fri, 12 Nov 2010 06:00:00 GMT

It's that time of year when managers and supervisors sit down with their subordinates and have that annual dreaded conversation, the performance appraisal.

This conversation is made more difficult this year by the fact that there is less to go around in salary increases and bonuses. There cannot be a minimum increase to keep up with inflation, because there is no inflation to offset. In some cases, a company can provide some increase by returning a portion of the wages previously reduced in order to survive the recent economic downturn.

A question that needs to be pondered by management is what type of appraisal system we should use this year. Believe it or not, some employers are revisiting an old favorite, FDS. The forced distribution systems method is where the individuals being appraised are ranked into four categories: A, B, C and D. This method of performance appraisal gained fame and popularity based on the endorsement of former General Electric CEO, Jack Welch.

According to the Journal of Management, up to 20 percent of all U.S. business organizations and up to 25 percent of the Fortune 500 firms use some type of FDS. In recent years, Yahoo! Inc. has stripped away its performance labels in hopes that reviews would center more on substance and less on explaining away a grade. Yahoo also instituted a "stack-ranking" system to determine how compensation increases are distributed. It asks managers to rank employees within each unit, with raises and bonuses distributed accordingly.

Any structured approach to the performance appraisal process has positive and negative consequences. Let's look at both.

Innovate or Die: Don't Let Stagnation Turn Out your Lights

Fri, 12 Nov 2010 06:00:00 GMT

Remember we first learned about entrepreneurship when we studied that Thomas Edison invented the light bulb? We grew up with it. It helped change the life of Americans for generations. This iconic American invention will now disappear from the American landscape.

The Washington Post reported on Sept. 12 that the last major General Electric factory in Winchester, Va., that was making ordinary incandescent light bulbs in the United States is closing this month, marking a small, sad exit for a product and company that can trace their roots to Thomas Alva Edison's innovations in the 1870s.

The Post reports that "what made the plant here vulnerable is, in part, a 2007 energy conservation measure passed by Congress that set standards essentially banning ordinary incandescents by 2014. The law will force millions of American households to switch to more efficient bulbs," and the resulting savings in energy and greenhouse-gas emissions are expected to be immense.

What's ironic is that they will be replaced primarily with compact fluorescents (CFLs), and sadly, no American manufacturer produces CFL's. Why?

After the 1973 energy crisis, a GE engineer named Ed Hammer and others at the company's famed Nela Park research laboratories were tinkering with different methods of saving electricity with fluorescent lights. But GE decided not to develop and market CSLs. So, though they were first developed by American engineers in the 1970s, none of the major brands make CFLs in our country.

That torch will now pass to China. Why? Because as the reporter points out, Ellis Yan, a Chinese immigrant to the United States, who had started his own lighting business in China, in the early `90s, turned his attention to the possibilities of CFLs.

"Everybody in the industry stayed back and was watching me," he recalled. "No one else wanted to make the big investment for the next generation of technology."

The business prospered, and Yan's factories in China employ as many as 14,000.

This is a story of the failure of entrepreneurship at one of the world's leading American companies.

Leadership: How to Ensure Disaster in Four Easy Steps

Fri, 12 Nov 2010 06:00:00 GMT

I appreciate that there are many capable, well-intentioned people who work on both sides of the aisle in our political system and I mean them no disrespect. However, I think most people would agree that if our political system is not broken, it is at least in a state of serious disrepair. As a result, it's a great model for how not to lead.

If you want a strong, financially viable organization, do the opposite of these standard political behaviors:

Management Dilemma: The Rule of 98/2

Fri, 12 Nov 2010 06:00:00 GMT

I started to write this article some 22 years ago but never got around to finishing it. It involves a management dilemma I call the Rule of 98/2.

The dilemma boils down to this: Should top executives focus workplace policies on identifying and weeding out the 2 percent of employees who are unreliable, can't be trusted, and take joy in spreading their poison among fellow workers? Or should policies focus on the 98 percent of employees who day after day show up on time, do their jobs, work hard, try to do the right thing, and often generate the breakthroughs that advance the company's interests?

FOMC Statements: Side-by-Side Comparison

Thu, 4 Nov 2010 05:00:00 GMT

This is a side-by-side comparison of the November 3, 2010 to the September 21, 2010 FOMC statements.

Your Future Is on the Phone

Mon, 1 Nov 2010 05:00:00 GMT

Comcast (CMCSA). Redbox. Fandango. Amazon.com (AMZN). Bloomberg. WebMD. The Weather Channel. Runner's World. Chipotle (CMG). Starbucks (SBUX). ESPN. Southwest Airlines (LUV). Hertz (HTZ). A list of my favorite brands? Sure. But only a handful of several dozen apps I've downloaded to my iPhone in the two years I've owned it.

That makes me an above-average app user, although some people I know have downloaded literally hundreds more. According to Nielsen's App Playbook, the average smartphone user has downloaded 37 apps. Multiply that number by the 53 million (and counting) smartphones in the U.S. and you get into some significant opportunities for customer interaction.

Just think about all the things we can now do on our phones: take a picture, send a text, surf the Web, play a game, read the news, scan our e-mail, record a video, check the weather, play our music, watch a movie, and thousands and thousands of other activities. This has huge implications for marketers of every size, but most small companies have failed to consider the possibilities. Whether due to oversight or intimidation, that's a mistake.

Sweat the Details

Wed, 20 Oct 2010 05:00:00 GMT

People always say, "don't sweat the details," but I say for business success it's critical to sweat the details. The details are the difference between adequate service and exceptional service, between satisfied clients and loyal clients, and good and great companies.

I was recently at a luncheon where Troy Vincent, former Badger and NFL star, spoke. He talked about a new attitude that Barry Alvarez brought in when Barry took over the football program at Wisconsin. He took a losing team and program and made it a winner. One of the key phases that Troy said Barry emphasized over and over is: "detail in your work." He still remembers that phrase and uses it with his kids -- the idea being that you must really strive for perfection to be the best you can be. That holds true on the football field and in business.

The Five W's of Marketing

Fri, 15 Oct 2010 05:00:00 GMT

When developing a marketing program, it's not enough to know who, what, when, where, and why. You need to keep them in order, says Steve McKee.

You've heard of the Five W's: who, what, when, where, and why. They're the elements of information needed to get the full story, whether it's a journalist uncovering a scandal, a detective investigating a crime, or a customer service representative trying to resolve a complaint. There's even an old PR formula that uses the Five W's as a template for how to write a news release.

Most of the time it doesn't matter in what order the information is gathered, as long as all five W's are ultimately addressed. The customer service rep's story may begin with who was offended, while the journalist may follow a lead based on what happened. The detective may start with where a crime was committed while details of who and what (not to mention when and why) are still sketchy.

Entrepreneurs Need to Partner with Specialists to Complement Their Strengths

Fri, 15 Oct 2010 05:00:00 GMT

In my previous column, we got inside the heads of the entrepreneurial generalists. Now, let's find out what makes the specialists tick.

As an entrepreneur, see if you can identify with any of the personalities or behaviors described in this article.

As a group, the specialists are tactically and detail-oriented. They prefer stability and security and are responsible for their area of expertise and demonstrate risk-adverse behaviors. When measured by the researchers, their compliance factor was much greater than their dominance factor. This is in direct opposition to the generalists whose dominance factor is much greater than their compliance factor. This is the source of the generalist's need to win and the root of their belief that they are always right.

While the specialist does things by the book, follows rules and procedures, the generalist is more apt to assume a greater degree of risk. The identified personality types for the specialist are authority, collaborator and the diplomat.

As I mentioned in my previous article, Bill Wagner of Entrepreneurial Magazine looked at the many entrepreneurial personalities, emotional intelligence and their brain dominance. This article will concentrate on the personalities and behaviors of the specialists. As you will see by the information presented, in order to be successful. many of the identified entrepreneurial personalities need to find a business partner whose personality and skill sets complement theirs. Otherwise, they reduce their chances of being successful in the development or maintenance of an entrepreneurial enterprise.

The authority
This group of entrepreneurs is not usually the best one to start a business, but they know how to make the products correctly and provide their customers with a high level of service.

How to Get Buy-in for Big Changes

Fri, 15 Oct 2010 05:00:00 GMT

We are in the middle of a reorganizing effort. As the VP of human resources, I'm very involved in this project. Among other things, we've created a new executive-level position that is going to have several VP's reporting to it. These positions previously reported to the president. Needless to say, this is creating quite a stir. For example, one of the gentlemen involved is close to retirement. With only a few years to go, he doesn't want to get involved in a lot of change, new initiatives, etc. He's, "been there, done that." He actually went so far as to come into my office and tell me, "If I have to report to `John Doe' (i.e., the new executive), I'm leaving the company." This from a 30-year veteran! I'm concerned that this kind of feeling exists within the rest of the VP's and wonder about how this will affect morale within the executive team. Do you have any counsel for me?

Job Security, Benefits Highly Rated in Annual Job Satisfaction Survey

Tue, 12 Oct 2010 05:00:00 GMT

Research indicates, not surprisingly, that employees who are satisfied with their jobs are more likely to stay with their employers. If you don't do formal surveying or otherwise aren't sure what things may be most important to your employees, SHRM's recent survey should be of interest for you and your leadership team.

See pages 6 and 7 on the following link.

Figure Out What Everyone's Excited About, and That's Your Business Plan

Tue, 12 Oct 2010 05:00:00 GMT

Creating a plan is hard. That is why, according to a national survey conducted this year by 3GoodQuestions and B2BCFO, only 9.6 percent of American businesses have a written plan they follow. That's right, fewer than one in 10. So, for all the talk about strategy, 90 percent of American businesses really don't have a plan. How come? There are many obstacles to having a plan, but I'm going to focus on three.

See page 8 of the following link.

Make Sure to Read this Checklist before Launching your new Website

Tue, 12 Oct 2010 05:00:00 GMT

Your company has spent months redesigning your old website. Everyone is excited about the prospects a new website will bring to your company and you're eager to launch. One key question before you do is, "have we taken the steps necessary to ensure our site will be found online, especially by the search engines?"

See page 13 of the following link.

Making the Most of your Time 'is Simple - it Just isn't Easy'

Tue, 12 Oct 2010 05:00:00 GMT

Life is crazy, and it seems to get crazier every year. We work longer and harder than just about any other country in the world. Burnout, fatigue, turnover, diminished performance, and teetering work/life balance are increasingly important problems for many people.

"With many 'right-sizing' efforts occuring, remaining employees are being asked to do more, which reduces their ability to have the balance they need," said Jennifer Mead, owner of Mead Consulting Inc.

See pages 34-35 of the following link.

Capital Region Indicators

Tue, 12 Oct 2010 05:00:00 GMT
See pages 18-21 of the following link for these resources:

- Interest rate yield curve
- Wisconsin gasoline consumption and taxes
- Gas prices
- Wisconsin market index
- Hotel/motel occupancy
- Dane County Regional Airport passengers
- Consumer credit score
- New vehicle sales
- Capital Region county sales tax
- Dane County housing starts
- Home sales for South Central Wisconsin and Dane Co.
- Unemployement rates for region, state, and nation
- Earning flows and commuters

To Unlock Creativity, Learn from Steve Jobs

Tue, 12 Oct 2010 05:00:00 GMT
Author Carmine Gallo digs into how Apple's co-founder and chief executive comes up with novel business ideas, then offers advice on ways to spark big innovations of your own.

This column is adapted from The Innovation Secrets of Steve Jobs: Insanely Different Principles for Breakthrough Success (McGraw-Hill, October 2010).

The company name "Apple" fell from a tree, literally dropping right into Steve Jobs's vision of what a computer should be: simple and approachable. Although Jobs had dropped out of Reed College in Portland, he returned to Oregon periodically to share ideas with like-minded people in a Zen-influenced commune called the All-One Farm where they grew--you guessed it--apples.

Managing Generational Differences

Sun, 10 Oct 2010 05:00:00 GMT
In today's workplace, employees across the generations interact with one another at every level. Imagine needing to educate all of those employees about safety, technical skills or personal development. It can be a tall order, but as Terri Luebke, chief learning officer for Faith Technologies in Menasha told Insight News Editor MaryBeth Matzek, it can be done - it just takes time to foster understanding - and be flexible

I was at Schneider National in corporate training and was seeing a change in the type of people coming in and applying for jobs. At the same time, we were seeing changes in the office staff and how they wanted their training. That sparked something in me after I left and began my own firm, Inspired Training Institute. I earned my master's degree and my thesis focused on Generation X. It made me realize not only do people of different generations learn differently, they also work differently and employers need to recognize that or risk having their employees tune out. I joined Faith about 18 months ago and we've been doing a lot about generational diversity and sincerely tailoring the training.

Overcommitment: A Happiness Killer

Wed, 6 Oct 2010 05:00:00 GMT
We often say yes because we want to make others happy and are afraid to admit we aren't superhuman. Learn to say no, advises Marshall Goldsmith

What kills happiness? It's usually a series of simple little things, like saying yes too much when you really should say no. There is a saying, "If you want to get something done, ask a busy person." This makes sense; if you are a busy person, you are obviously organized and practiced at delivering results. Beware: There's a fine line between taking on a lot and taking on too much.

It's easy to see how people who are in corporate situations fall into the overcommitment trap. If you're good at what you do and like your job, everybody wants to rub up against you in some way. They want you in their meeting. They seek out your opinions on their ideas. They ask you to run a project for them. You get assaulted with opportunities. This happens at all levels, high and low. It's how junior employees advance more rapidly than their peers; their enthusiasm and ambition tempt bosses to pile on the work until the employees cry uncle, which they never do. "I can't handle it" is the last thing a young ambitious person wants to admit. Eventually, however, the quality of their work begins to falter in a predictable but vicious circle.

The Secret to Small Business Tech Support

Wed, 6 Oct 2010 05:00:00 GMT
Put down the golf club: You're the boss--so please behave like one when technology goes on the fritz.

Ever get that sinking feeling? That pit-of-the-stomach sensation when you know something's gone wrong. Business owners know what I'm talking about. We get it when that customer calls to complain about a job. Or when a supplier's key shipment doesn't arrive on time.

You're a business owner. You know this feeling. When is it the absolute worst? When it's a technology support issue. You come to work and your computer screen is not the way you left it the night before. When you arrive at your office this morning, you're not greeted by the typical desktop. Instead, the screen is frozen at "Windows is starting up." An update that automatically downloaded last night screwed something up. Your screen is black. And now so is your mood.

Employers can help Lessen Stress in Workplace

Mon, 4 Oct 2010 05:00:00 GMT
Stress is stress.

Clinically speaking, the negative health effects of stress haven't changed since the condition was first diagnosed as a health problem. But the amount of stress the average person carries -- and its causes -- have changed tremendously since the start of the Great Recession.

Its effects will become chronic conditions for millions of Americans, health experts say.

"Stress in the workplace has shifted from a focus on achieving and excelling to just surviving," said Nacie Carson, director of learning and development at Cleaver International, a management and consulting firm based in Sherborn, Mass.

The burden of keeping their jobs presents a dramatic shift in the causes of workplace stress, said Alex Lickerman, a primary care physician at the University of Chicago. The main causes of workplace stress these days are:

Managing Generational Differences

Fri, 1 Oct 2010 05:00:00 GMT
In today's workplace, employees across the generations interact with one another at every level. Imagine needing to educate all of those employees about safety, technical skills or personal development. It can be a tall order, but as Terri Luebke, chief learning officer for Faith Technologies in Menasha told Insight News Editor MaryBeth Matzek, it can be done - it just takes time to foster understanding - and be flexible

I was at Schneider National in corporate training and was seeing a change in the type of people coming in and applying for jobs. At the same time, we were seeing changes in the office staff and how they wanted their training. That sparked something in me after I left and began my own firm, Inspired Training Institute. I earned my master's degree and my thesis focused on Generation X. It made me realize not only do people of different generations learn differently, they also work differently and employers need to recognize that or risk having their employees tune out. I joined Faith about 18 months ago and we've been doing a lot about generational diversity and sincerely tailoring the training.

FOMC Statements: Side-by-side

Wed, 22 Sep 2010 05:00:00 GMT
Corey Chambas, President & CEO of First Business Financial Services, Inc., posted the following article today. This is a side-by-side comparison of the September 21, 2010 to the August 10, 2010 FOMC statements.

Patience is a Virtue ... But Maybe Not in Business

Tue, 21 Sep 2010 05:00:00 GMT
I was recently talking to a fellow business person about hobbies, and we discovered we both competed in triathlons. As we talked a bit more, I mentioned that my favorite hobby, however, is musky fishing. She said, "Boy, you must really be patient!"

Muskies are sometimes known as "the fish of 10,000 casts," and while that might be a bit of a stretch, most days on the water, you don't catch a fish. I chuckled at the irony, because if you ask my wife or the people I work with, they would all say I am very impatient. I started thinking about the phrase, "patience is a virtue." Is this true? Sometimes, but in the business world, I think it might be the opposite.

Bill Helping Small Businesses Inches Closer

Mon, 20 Sep 2010 05:00:00 GMT
BOSTON (TheStreet) -- The Senate yesterday passed a legislative package of small-business tax incentives and measures intended to improve access to capital.

The Small Business Jobs and Credit Act of 2010 creates a $30 billion fund to provide small banks (those with assets under $10 million) access to capital earmarked for small-business lending. Proponents of the bill say this pool of capital, coupled with government guarantees, will ease the credit crunch lenders have held to since the onset of the recession and could eventually leverage up to $300 billion in additional lending. Also included are roughly $12 billion in tax breaks and incentives.

The Senate bill, passed 61-38, overcame Republican opposition when two members -- George Voinovich of Ohio and George LeMieux of Florida -- broke ranks. It heads to the House next week, where an earlier version was approved, then onto the White House for ratification.

A key piece of the bill's tax incentives involves breaks related to the purchase and depreciation of qualified equipment and machinery. In 2008 and last year, businesses were allowed to immediately write off 50% of the cost of new equipment. The new bill extends that bonus depreciation through this year -- it was initially to expire at the end of last year -- and is retroactive to Jan. 1. Companies are also allowed to write off up to $500,000 in capital expenditures in tax years 2010 and 2011.

The bonus depreciation provision is the most expensive tax break in the Senate bill, with $5.4 billion spread over 10 years and an initial cost of $38 billion in its first two years, according to an analysis by CCH, a Wolters Kluwer firm providing tax, accounting and audit services.

Customer Service: An Opportunity, not a Problem

Fri, 17 Sep 2010 05:00:00 GMT
In these economic times, client acquisition and retention is job No. 1.

While this is an obvious conclusion, my own negative experiences tend to mirror yours, suggesting that not all organizations are walking the talk at a very high level along these lines.

What can organizations do to handle complaints better, in essence, turning lemons into lemonade? In our consulting practice, we like to explore these charged interactions where a customer is upset, frustrated, angry, etc., as moments of truth. We think that if they are well-handled, customer satisfaction can actually be heightened because the problem is resolved and corresponding trust has been built, as follows: You heard the customer's concern, you responded to it without becoming defensive or dismissive, and you took care of the situation to the customer's satisfaction.

To begin, let me make the following observations about customer complaints:

Psychology: The Entrepreneurial Brain

Fri, 17 Sep 2010 05:00:00 GMT
Did you ever wonder why some business people are successful and others are not, and yet they both call themselves entrepreneurs?

The answer often lies in how their brains are wired. Many successful business people have attention-deficit characteristics, qualities or tendencies.

"There's a very high incidence of ADD among CEOs in small companies," said Daniel Amen, M.D., a brain researcher and director of Amen Clinics Inc., a group of four brain-imaging centers in the United States. "These are people who take risks, need people to help them stay organized, don't like working for other people, have a lot of energy and are good at multitasking."

Psychologists tell us that our personality is influenced by both our genetic makeup and by the environments in which we live and do business. Over 1,500 entrepreneurs whose companies had sales of over $1 million dollars were studied for Entrepreneur Magazine. The researcher Bill Wagner looked at their personalities, emotional intelligence and brain dominance. His research yielded two major categories of entrepreneurs: the generalists and the specialists.

This article will concentrate on the generalists. In the next article, I will examine the personalities and behaviors of the specialists.

Yearly Survey Shows Employers Still Planning Salary Budget Increases

Tue, 14 Sep 2010 05:00:00 GMT
The past 30 months have presented economic challenges most of us have not seen in our lifetimes, much less our working lives.

During the past year, with many organizations continuing to struggle to survive or regain their footing and employees grateful for retaining their jobs, the question of pay increases hasn't been a front-burner decision for most companies.

However, the recent WorldatWork (formerly the American Compensation Association) "2010-2011 Salary Budget Increase Report" states that employers responding to their survey generally indicate a "slow recovery," with the total salary budget increase for 2011 predicted to be an average (median) of 3 percent for all pay groups across almost all industries.

See page 8 at the following link to read the full article.

'Creativity Pipeline' Can Help Encourage Ideas from Everyone

Tue, 14 Sep 2010 05:00:00 GMT
Would you prefer your staff came up with A) one $1,000,000 idea a year or B) a thousand $1,000 ideas?

I'd pick B. Hitting the grand slam feels great, but counting on it is hard on the nerves. Having a steady stream of good ideas is much better, but you have to manage the process, like the R&D department at Apple.

See page 10 at the following link to read the full article.

Commit to Succession Planning and Your Business Will Benefit

Tue, 14 Sep 2010 05:00:00 GMT
Organizational leadership is about driving growth, value and competitive advantage through your best leaders. Succession planning is one of the many choices you have to leverage the talent you have recruited, developed, and now need to manage effectively.

See page 11 of the following link to see the full article.

Tough Times for Sales Teams; Managers Must Make Adjustments

Tue, 14 Sep 2010 05:00:00 GMT
Every order and every new customer seems so much more precious now than a couple of years ago when busienss was more easily won. "There is plenty of business for everyone who is willing to work for it" was often the mantra.

See page 12 of the following link to read the full article.

Google Ramping up with Caffeine; Here's how to Make the Most of Changes

Tue, 14 Sep 2010 05:00:00 GMT
On June 8, Google announced the completion of a new web indexing system called Caffeine, which provides 50 percent fresher results for web searches than the previous Google index.

Caffeine allows Google to provide more current, and therefore more relevant, content to the searcher much sooner after it is published than was possible before. Certain aspects of the Caffeine update have been visible for several months and Goodle officially announced that the updates have been completed.

See page 15 of the following link to read the full article.

Boost Productivity with an Internal Website

Fri, 10 Sep 2010 05:00:00 GMT
There is a critical question facing many leaders in today's business world: How do I keep morale high while staff numbers are low?

All around the world, companies are doing more with less. Efficiency became all the rage as small businesses trimmed down to keep the lights on. Telecommuting boomed, and not because top brass bought into the idea of work-life balance, but because it helped the bottom line.

The irony is that companies have started making back profits, but aren't willing to hire. And why should they? Employees are willing to do more for less with the ever looming pink slip waiting around the corner. With this kind of news, it's staggering that so many businesses have raised productivity while staff numbers dwindled. Is it strictly fear-based productivity, or are companies becoming better businesses?

So, how do businesses stop the productivity "bubble" from popping?

Compromise Takes Science to be Artful

Fri, 10 Sep 2010 05:00:00 GMT
In dealing with complex give and take, remember that no one party can have it all. Two opposing sides can't afford to come up empty on certain issues. However, with cooperation and compromise from all parties, most things can be worked out.

Compromise is often looked upon as weakness. When President Harry Truman pursued a difficult program, he was asked whether he would settle for half a loaf. He said he would be willing to settle for one slice at a time.

Business requires constant compromise: negotiating contracts, hiring, closing sales. Certainly, there are times when you neither can nor should compromise -- on your principles, for example. Know what you need, what you are prepared to give up and on what issues you will never budge.

Obama To Back More Business Tax Breaks

Tue, 7 Sep 2010 05:00:00 GMT
WASHINGTON -- President Barack Obama will call on Congress to pass new tax breaks that would allow businesses to write off 100 percent of their new capital investments through 2011, the latest in a series of proposals the White House is rolling out in hopes of showing action on the economy ahead of the November elections.

An administration official said the tax breaks would save businesses $200 billion over two years, allowing companies to have more cash on hand. The president will outline the proposal during a speech on the economy in Cleveland Wednesday.

Business Fashion Tips for Generation Y (WHY?)

Tue, 7 Sep 2010 05:00:00 GMT
Hey, emerging leaders -- here's a story from a GenY writer on staff at IB to help you dress to impress at your next job interview!

You got your masters in Business from UW, worked with a company for a few years (where you perfected all those skills that now make you a great-versus-good hire) -- you're an accomplished communicator, you know how to work with a team, manage your time effectively, and set up a killer excel spreadsheet.

Think you're ready for your new job interview? Maybe, maybe not, and let's explore why.

AP Economic Stress Index: Measuring Financial Strain across the US

Tue, 7 Sep 2010 05:00:00 GMT
County-by-county data measuring unemployment, bankruptcies, foreclosures across the U.S.

Help! I need somebody. Help!

Tue, 7 Sep 2010 05:00:00 GMT
We recently hired a few new employees. As their supervisor walked them through our facility and introduced them to everyone, I was reminded of a process I follow with my own direct reports. On the first day, I sit down with the employee and basically say, "OK. You have the job. In our lengthy interview and hiring process, you may have fooled me and been able to oversell yourself a bit. If so, that's OK. At this point, you're hired and I am fully committed to making sure you are successful." I let the employee know that if there is ever anything that they need help with, don't understand, or if they are just in over their head, that they should come to me. That may seem a bit unusual but I believe a supervisor's main job is to help.

Peak Performance: The Middle-Aged Brain is in its Prime

Fri, 3 Sep 2010 05:00:00 GMT
While I was dining with several girlfriends, one of them asked, "Hey, do you ever wonder where your brain goes when you hit middle age?"

She went on to describe her most recent experience. "Last weekend, I was standing with the refrigerator door open wondering what happened to the eggs I thought I had just bought. I couldn't find them anywhere. So I hopped back in my car and headed to the grocery store to buy another dozen since I had planned to make cookies for my daughter's Sunday school class. Two days later my son says to me, `Mom, I didn't know you could freeze eggs in their shells?' I looked at him perplexed, `What are you talking about?' To which he replied, `There are a dozen eggs in the freezer.' Mystery solved!"

She continued, "I'm a business owner with 35 employees, I've bucked the economy, said `See ya!' to my banker and I can't remember where I put the eggs - go figure!"

Identity Crisis: To Differentiate Yourself, Avoid These Phrases

Fri, 3 Sep 2010 05:00:00 GMT
One sure way to get a unanimous non-show of hands from a group of salespeople is to ask this question: "Let's see a show of hands. How many of you, when you set your objectives for a customer meeting, have at the top of the list: `I want to come across to the customer like every other salesperson that customer met with in the last week?'

Truly, the very last thing every salesperson wants is to be like other salespeople. Can you name another profession where there is such a strong distaste for being like all of the others in the profession? I can't! Doctors? Engineers? Accountants?

I asked this very question at a talk I gave a few months ago and received the predictable hands-folded-on-the-lap response. After the talk one of the attendees was trying to get my attention. He'd wanted to express his wild agreement with my message (he appeared to be fishing for affirmation).

"In fact," he pointed out to me, "I always say to customers that `I don't want to sell you anything' so that I DON'T come across like other salespeople."

The irony was too much for me, and I shared that with him. The very words he uses to separate himself from other salespeople unwittingly - and unfortunately - do just the opposite. They define him as the salesperson archetype!

Here is the question for all salespeople to ask themselves: "Is it possible to be viewed differently by customers if we sound like every other salesperson?" Whenever I pose the question to salespeople I get a unanimous "no," and that's good.

If you take differentiating yourself seriously, here are 10 phrases that, whether we like it or not, have the unintended consequence of defining us as stereotypical salespeople. Please note, for many of these, there isn't a simple substitute phrase that doesn't define us as salespeople. My recommendation to salespeople is to start by just avoiding these. You will develop alternates on your own that work.

Is it Time to Re-engineer Family Biz?

Fri, 3 Sep 2010 05:00:00 GMT
If you've been waking up around 3:00 a.m. and lying there wondering how you're going to keep your family business on track, I can suggest an approach. It's called re-engineering, and in technical terms it means "examining and altering a system to reconstitute it in a new form and the subsequent implementation of the new form."

For a business-owning family, re-engineering works in three distinct but closely related sequential phases, and the process recognizes that the family, the business and the future are actually interdependent components of one whole system.

In Uncertainty, Leaders need Support

Fri, 3 Sep 2010 05:00:00 GMT
You're trying to drive a change into your organization. Your boss told you to take on the project, it is part of your job to do it and you just really believe it is important -- or some combination of those reasons. You've created the work plan, put together the team, engaged the vendors and consultants you need and even have a plan for how to communicate and train people.

The problem is that leaders aren't doing or saying the right things about your change. It might be the person who ordered the project to happen, your boss, your boss' peers or even the CEO.

Discovery Communications Crisis a Reminder to Review Emergency Plan

Thu, 2 Sep 2010 05:00:00 GMT
Workplace experts say the hostage crisis at Discovery Communications Inc. in Silver Spring should prompt all companies and building owners to review their emergency evacuation and continuity of operation plans -- or, if they don't have a plan, to make one.

Authorities praised Discovery for the way it handled the crisis and its evacuation plan, which was implemented after the Sept. 11, 2001, terrorist attacks and is updated annually.

How Social do you want your Media to be?

Thu, 2 Sep 2010 05:00:00 GMT
Twitter and tweets, fan pages and handles. Social media have rapidly changed the way individuals communicate with each other, and they have become a crucial component of how businesses communicate with clients, too.

Social media is being used in today's ever-changing world in nearly countless outlets, area experts say. Each outlet has its own special function, and each is designed to offer something "traditional" media has not -- immediate feedback and interactivity.

Banks Lending, but You Need to Find the Right One

Wed, 1 Sep 2010 05:00:00 GMT
There's a big myth out there that banks are not lending. Is it true? Yes and no.

The strong banks are still lending, and they're lending primarily to C&I (commercial and industrial) businesses. In Northeast Wisconsin, this is good news. Our C&I manufacturing base is strong. We build trucks, we build cranes, we build ships, we make paper products, we build stuff. And generally, these businesses have done pretty well in our area. This is great.

So why are people still getting the message that banks aren't lending? ...

Tom is Selling his Business: Now What?

Fri, 27 Aug 2010 05:00:00 GMT
I admit that sometimes I live in a fantasy world. I actually think that I'm getting a buzz from lite beer.

I have a friend named Tom who's looking to sell his equipment parts distribution business. Problem is he can't sell it. He's had more than a half-dozen potential buyers and they've all offered way less than what he was looking for.

What's the problem? Tom lives in his own fantasy world. He thinks his company is worth way more than it really is. That's almost as bad as thinking two cheeseburgers at McDonald's is healthier than a Big Mac (everyone knows it's the FRIES that'll kill you).

No time like the Present to Review the Rules of Networking

Fri, 27 Aug 2010 05:00:00 GMT
Have you ever been in crowded restaurant and wondered what all the businesspeople are discussing?

* Big deals?

* Expansion?

* Bonuses?

Unfortunately, these days it's likely many people are doing networking lunches - aka job hunting.

During the past month, I've had lunches with five job seekers - all with good chief financial officer experience and strong resumes. They've ranged from people I've done deals with, to friends of business colleagues, to acquaintances of cousins of the ex-girlfriend of someone who used to know someone I don't remember.

It's clear many people have exhausted their close networks. Anyone lucky enough to be employed is a potential networking partner. So, it might be helpful to review the "rules" for networking meetings:

Back to School!?!

Tue, 24 Aug 2010 05:00:00 GMT
Ah, it's the end of summer and the kids are going back to school. Some of us are prepping our own kids for this adventure and some of us have kids beyond this stage in life. Regardless of your situation, I'm guessing you have fond "back to school" memories from your childhood.

Sure, there was some anxiety. I personally dreaded not being able to sleep in like I managed to do in the summer. While we may have not been looking forward to homework and tests, it was always an exciting time. There were new teachers, new classrooms, and new classmates. As a kid you never realized it, but the most important thing was the learning process was starting up again.

Blogging with a Purpose Helps to Build Brand Awareness

Fri, 20 Aug 2010 05:00:00 GMT
When Greg Salsburg began blogging each week on media, marketing and current events, he knew it couldn't be an occasional activity.

He knew he'd have to blog consistently to build brand awareness among his readers and to optimize his rank among search engines.

So, Salsburg quickly made a process of blogging. Whenever he's reading a newspaper, magazine or online site, he clips and stashes articles in a folder he carries. He also jots notes in an idea binder he keeps nearby. He e-mails himself links to interesting articles.

Then, each Friday morning, he writes his blog post and e-mails it to an assistant who reviews it for spelling, grammar and general readability. By Sunday, Salsburg rereads the article with "a fresh set of eyes," approves it and sends it back to his assistant for posting to his BlogSpot site.

"It's become part of my routine," said Salsburg, principal with Miami-based marketing firm STIR-Communications. "This way, I make sure the blog is consistently out there."

FOMC Statements: Side-by-Side Comparison

Wed, 11 Aug 2010 05:00:00 GMT
Corey Chambas, President & CEO of First Business Financial Services, Inc., posted the following article today. This is a side-by-side comparison of the August 10, 2010 to the June 23, 2010 FOMC statements.

The Five C's of Sustainability Branding

Wed, 11 Aug 2010 05:00:00 GMT
At our request, Marc Stoiber, the vice-president for green innovation at Maddock Douglas and a veteran in the relatively young field of sustainability, sat down and created a list of what companies and marketers need to do to make "greenness" (consideration for the welfare of the planet) take hold within their firms and, more important, in the marketplace.

We have absolutely no doubt, as Daniel C. Esty and Andrew S. Winston pointed out in their book Green to Gold (Wiley, 2009), traditional green priorities (reduce, reuse, recycle) will be surpassed by the two new priorities of sustainable innovation: reimagine and redesign. But our question to Marc was, what could companies do to get in front of the curve?

With that by way of background, here are Marc's (with a little bit of help from us) Five C's of Sustainability Branding.

Farms Grow More than Vegetables

Tue, 10 Aug 2010 05:00:00 GMT
I feel very lucky to live in Madison. One of my favorite hobbies is cycling. I especially enjoy biking this time of year, because within minutes of leaving my house, I am riding through lush farm fields. My wife loves the farmers' market, and comes home every Saturday morning with all kinds of produce brimming from her basket (I never used to know that Sorrel, Rapini and Cardoons were even foods). Local farms are a great asset to our area -- not just for their beauty and for pleasing our taste buds, but also for our businesses. That's because farms don't just grow vegetables -- they grow great employees.

When you interview prospective employees, you can test for a lot of things -- intelligence, personality traits, technical skills -- but it's difficult to test for something I think is the backbone of the employee, their work ethic.

When Your Team Reverts to the Old Strategy

Tue, 10 Aug 2010 05:00:00 GMT
Repositioning your company can be an invigorating move--it's exciting to take a fresh approach and go after new opportunities. But change is also risky and over time, the momentum behind it can wane. When that happens, it's not uncommon for individuals, units, or entire organizations to default to the old strategy. If your team relapses, how can you get things back on track and people re-focused on the new direction?

Succession Planning a Priority at First Business Financial Services

Tue, 10 Aug 2010 05:00:00 GMT
Many organizations have put their strategic decisions and plans for growth on hold. Others believe there is little they can do, other than keep plugging away day-by-day. Still others not only manage day-to-day operations efficiently, but take time to plan for growth, and carefully select the leaders they need to succeed for years to come.

This is the story of First Business Financial Services, as told by Corey Chambas, president and CEO since 2007. See page 8 of the following link.

Want to Get to Know your Client? Go Beyond Traditional Meetings.

Tue, 10 Aug 2010 05:00:00 GMT
Getting to know our clients and prospects more personally enables us to identify what truly matters to them, on a much deeper level then simply understanding their life at work. And in building these stronger personanal connections, we strengthen our business ties. See page 11 of the following link.

White Collar Companies Go Lean

Tue, 10 Aug 2010 05:00:00 GMT
In the manufacturing world, lean principles reduce inventory and work-in--process. But you don't have to be a manufacturer to enjoy the benefits of lean. See pages 30-32 on the attached link.

Life's Most Simple Lessons are Often the Best

Sat, 7 Aug 2010 05:00:00 GMT
Gordon Dean was an American lawyer and prosecutor whose distinguished career was fairly typical for Washington types. He went to work for the Justice Department under President Franklin Roosevelt, taught in the law schools at Duke University and the University of Southern California. He was appointed as one of the original commissioners of the Atomic Energy Commission in 1949 by President Harry Truman, eventually becoming its chairman from 1950-53.

When Dean died in a plane crash in 1958, it's said that among his personal effects was an envelope with nine life lessons scribbled on the back. These lessons aren't about the law, or atomic energy, or foreign relations. Rather, they represent wisdom that should be shared and used by people everywhere.

Business Strategy: Top Ten Tips and Tactics for a Tough Economy

Fri, 6 Aug 2010 05:00:00 GMT
Whatever you call it, the rate of income growth across US businesses has slowed to a crawl, and that is scaring the pants off of a lot of people. Your own business may not be affected in any way, but the fact is many people are worried about their future. Very worried.

Bad news? In some ways, yes - obviously. Worried folks spend less money. They no longer buy on impulse, making each transaction, each sale, a little bit harder.

But for those of us with the right approach, there's hope. Hope and opportunity.

Why? Because when everyone else is selling with less vigor and determination, you can do the exact opposite. While timid business owners are pulling in their horns and "conserving cash" you can outmarket them. As the unemployment rate creeps up, you can acquire their staff more easily. And good businesses are for sale and can be bought on the cheap.

Here are a few business coaching tips and tactics that will definitely help when things get rough. These tips apply whenever your company needs a boost. You can think of them as turnaround tactics.

1. Sell Harder...

Sustainability can Contribute to Bottom Line

Fri, 6 Aug 2010 05:00:00 GMT
It's no longer a maybe. "Greening" for small businesses is here.
My thanks this month to Vistage member Frank Priznar, CEO of PRIZIM, Inc., for his thoughtful insights on this topic.
Perhaps one of the biggest misconceptions about greening is that while it's good for our environment, it's costly to the bottom line. Priznar offers these contrarian suggestions

Re-conceptualizing Performance Success

Fri, 6 Aug 2010 05:00:00 GMT
Two years ago, a local manufacturing company realized that its organizational structure was negatively impacting performance.

Decisions took forever, requiring trips up and back down the authority ladder. Collaboration happened only by accident, since it was not an everyday practice. Differences of opinion were taken personally rather than being viewed as part of the process for exploring new and better ways of doing business.

Customers were satisfied, but rarely appeared to be gung ho about the company.

Then a change in leadership occurred when retirement allowed a new leader to emerge. With the new leader came a new vision. His plan was leading edge, filled with potential, compelling, and simultaneously scary. It required a new organizational structure, one that eliminated the traditional pre-packaged hierarchy in favor of horizontal cross-functional collaboration (bye, bye silos).

Negotiating 101: 25 Lessons from 40 Years of Experience

Fri, 6 Aug 2010 05:00:00 GMT
If you ask me what one skill has made the biggest difference in my career, I would answer you, hands down, negotiating. It applies to selling, purchasing, hiring, firing, expanding, downsizing and every other phase of business you can name. It's part of the game that I am particularly fond of, and it's not just to see how much I can get the other person to give. I like to learn from the varied strategies that other people use.

Here are some of the lessons I have learned over a lifetime...

How to Convert Price Objections into Sales

Fri, 6 Aug 2010 05:00:00 GMT
Jim had just finished a fine presentation on the features of his state-of-the-art printers and the benefits his prospect would enjoy when he installed the system in his office.

The prospect acknowledged that it was a good product, but then uttered the phrase that salespeople hate to hear: "I can get the same for less money."

To which Jim responded, "I'm glad you brought that up."

Jim believed that, in the long run, agreement with the prospect would be more profitable than disagreement.

Deal with Common Objections Early in Process

Fri, 6 Aug 2010 05:00:00 GMT
You're lucky if buyers clearly voice objections, making it easier to respond. By far, the most difficult buyers are those who cloak their objections and fears under a shroud of silence. Their objections are unspoken and therefore never resolved.

Direct objections are the easiest to handle. The most prevalent reasons for direct objections are...

Inside Family Business, Behavior-wise

Fri, 6 Aug 2010 05:00:00 GMT
Some of my most valuable discoveries come while I'm looking for something else. Call it serendipity or call it dumb luck. If I want to locate my golf shoes on the first playable day of the fall, all I have to do is launch an intensive search for the December 1989 issue of National Geographic.

It happened again last week when I was doing some research for a book I'm writing. I was digging around for some thoughtful discourse on why families act the way they do when I came across an article in the scholarly journal Entrepreneurship Theory and Practice by Jess Chua, James Chrisman and Pramodita Sharma titled "Defining the Family Business by Behavior." The authors make some points that are just too good to keep to myself.

Let Top Performers Know They Are

Fri, 6 Aug 2010 05:00:00 GMT
What salespeople don't know can hurt them. Having a solid grasp on personal performance is necessary to gauge improvement.

There was a study published in 1999 by Justin Kruger and David Dunning on how people's perceived knowledge related to actual performance. Their research showed that individuals who fell within the bottom 25 percent of knowledge in a given topic still tended to place themselves in the "above average knowledge" category.

Simply put, the people who performed poorly in their humor, grammar, and logic tests felt that they would be above the 50th percentile.

Top performers whose scores were ranked as high as 85 percent to 90 percent of all participant scores, predicted they would only get as high as 72 percent to 74 percent of the participant scores. Top performers were overly modest.

So what does this have to do with sales? I have done some informal polling with groups of salespeople and this same trend appears.

No-shows don't have to be no-gos

Wed, 4 Aug 2010 05:00:00 GMT
Have you ever experienced a no-show for an appointment? The temptation is to lose your temper or just slink back to your office.

Losing your temper will alienate you from the client. Slinking away suggests that your time isn't valuable and it's acceptable for the client to be absent.

Either reaction doesn't move the opportunity forward. No-shows happen to all salespeople at one time or another, but they don't need to be disastrous. There are some simple rules to help you avoid the problem, and turn no-shows to your advantage when it crops up.

Companies decide whether LEED certification can justify cost

Sun, 1 Aug 2010 05:00:00 GMT
When Lawrence University in Appleton built its newest residence hall in 2003, it built to sustainable guidelines, but did not seek LEED certification. But by 2007, as it planned what has now become the Warch Campus Center, LEED certification was a part of the equation from the very beginning.
What changed? In large part, it was Lawrence's "Green Roots" initiative to integrate sustainable principles through educational policies, activities and eco-friendly behavior.

"Pursuing LEED certification is a statement about the value we place on making choices and decisions that are good for the university and our students," says Nancy Truesdell, vice president of student affairs and dean of students at Lawrence.

LEED, which stands for Leadership in Energy and Environmental Design, is a nationally accepted benchmark for the design, construction and operation of green buildings. More than 35,000 projects have been registered to follow LEED guidelines since they were established in 1998, and just over 5,000 of these have become certified.

Some companies opt for LEED certification because it's a broadly accepted standard, conducted by a third party. Others do so because they want the recognition certification brings or because government contracts require it.

Activity tracking is not a management tool, it's an exercise in babysitting

Fri, 30 Jul 2010 05:00:00 GMT
How does a manager properly measure the effectiveness of his/her sales people?

Most would point to level of productivity. Fair enough. What, exactly, does being "productive" mean for a sales person?

Does one measure productivity through activity or results?

Most managers measure activity. They equate productivity with demonstrated effort.

The logic here--"selling is a numbers game"--is that if enough activity is performed, acceptable results will follow.

They then establish effort-based weekly or monthly standards, such as making a minimum number of calls, having a minimum number of appointments, etc., and they monitor the amount of production in these categories.

In theory, this sounds like a good idea, but in practice it does not work very well. You see, selling is a skill, not simply a task.

So, the inherent flaw in measuring activity is that you are measuring work ethic, not ability.

When the (All) Stars Align

Tue, 27 Jul 2010 05:00:00 GMT
LeBron James, Dwyane Wade, and Chris Bosh. Whoever has the best team wins. Whether its basketball or business, it's always the time to be looking to improve your team. If you're in the service business, you are in the people business, and now might be the best time to add an all star or two to your lineup.

Yes, the economy is still in rough shape, and it can be scary to spend money. But where there's change, there's opportunity. Look at your industry. Has there been consolidation and/or downsizing? Have people experienced changes to their compensation, benefits, or job responsibilities? Is morale down at your competitors? There is a chance one of their star players would listen to your story, even if they never would before.

Well-crafted questionnaire can be salesperson's best power tool

Wed, 14 Jul 2010 05:00:00 GMT
Maybe you're feeling a bit ambitious this summer, building a terraced deck or getting the hands dirty with some designed landscaping, each adding texture and color to your home.

To create that neighborhood magnum opus, you'll need the appropriate tools to ensure the job is done right. If not, chances are your work won't stand out.

That's why I consistently ask business owners how they're putting their people -- all of the company's people -- in a position to win. If they show me effective tools that correlate directly with desired performance, it's usually a growing company. Conversely, if everyone is just winging it, there's usually smoke -- then fire.

Regarding sales tools, I'm not referring to the usual suspects such as CRM software or reporting mechanisms. Those aren't necessarily bad. It's just that management often abuses them, eroding the salesperson's most valuable asset: face time with the customer. Additionally, these tools tend to be a bit too reactive for my taste. I want tools that bring frequent rain -- frequent profitable rain. What we need to employ are tools that enable successful selling for the new millennium.

Mining the best way to new sales: client referrals

Wed, 14 Jul 2010 05:00:00 GMT
Asking for referrals is often easier and friendlier than cold calling to get sales leads. Yet, it is vastly underutilized. About 20 percent of your customers will offer a referral, another 20 percent never will and the remaining 60 percent need a push. The key to success is tapping into that 60 percent segment.

Begin by making a list of your customers, business contacts and friends. Next to each name, write how many people they could potentially introduce to you. With a good introduction, you should be able to close 50 percent of the time. In the world of sales, this is easy money.

Human Resources: Hail the introvert

Wed, 14 Jul 2010 05:00:00 GMT
Do you know someone who needs down time every day? Someone who connects well one-on-one but occasionally stumbles when communicating at a team meeting? Who can deliver a persuasive presentation to a large audience but experiences brain-freeze when making small talk at parties?

If you answered "yes" to these questions, it's likely that you know an introvert.

Contrary to common belief, introverts are creative, imaginative, intelligent and thoughtful people. They often possess an innate ability to process complex issues by synthesizing them into smaller, easier-to-understand concepts. Introverts usually make a profound impact without fanfare.

Creating a flow chart is first step toward improving process, efficiency

Wed, 14 Jul 2010 05:00:00 GMT
This probably won't surprise you: Most businesses don't really know how they work. For all of the daily conversations about getting things done, most managers couldn't accurately describe how their stuff gets out the door. Don't believe me? Update your flow charts and, dollars for doughnuts, someone will slap their head and say, "I didn't know we still did that!" Don't feel bad - that's an opportunity to save money and boost quality. Here's a few questions to get you started. (see page 10 on the following link)

For maximum benefit, take the 9-Box Tool to the next level

Wed, 14 Jul 2010 05:00:00 GMT
Last month, I introduced the 9-Box Tool and discussed how you could begin to leverage its use. Today, I follow that up with an example of how you can better coach your management team to higher levels of performance. (see page 11 at the following link)

Display advertising can pay dividends as part of overall marketing strategy

Wed, 14 Jul 2010 05:00:00 GMT
As companies struggle with where to put their limited advertising dollars, one often overlooked approach is display advertising, sometimes better known as banner advertising. (see page 15 at the following link)

Smart phones and other gadgets boost (hinder) productivity

Fri, 9 Jul 2010 05:00:00 GMT
Ever heard the expression "The more things change, the more they stay the same?" Not so in the world of technology. In fact, things change so fast it's hard to keep up. Just when you buy the latest and greatest gadget, something else comes along that outdates it, practically before you've taken it out of the box and figured out everything it does.

Technology is intended to make our lives easier and our work more productive and, in most cases it does. But there can be down sides to it, too. Take the smart phone, for example.

"Smart phones are great because you can be in constant communication with clients, but the down side is people rely on that," says Jim Higgins, owner of Higgins Technology in Neenah.

"And if it goes down for any period of time and you're without that, customers get upset."
But the advantages outweigh the disadvantages and as far as smart phones go, Higgins says the Blackberry is the "rock solid" business model.

"If you're looking to run your life support machine for your business on a smart phone, it's going to be on a Blackberry," he says. "The marketplace is changing though, and RIM (Research in Motion, which makes the Blackberry) is really going to have to step it up to compete with the Google Android phones."

Sales: No change, no progress

Fri, 9 Jul 2010 05:00:00 GMT
My company is in the business of making sales organizations better at selling. As such, executives and business owners approach me to explore the possibility of us doing just that for their companies.

Let me take you through the initial conversation I have with them, as we both size each other up, with the hope that it might help you think about how to approach your own efforts to improve the effectiveness of your sales force.

Why CEOs Need to Harness People Power

Fri, 9 Jul 2010 05:00:00 GMT
Do you have an idea to improve the way things are done in your company? Well, guess what--you're not alone. Ask your co-workers if they, too, have ideas. You will quickly discover that even in the best-run companies there are thousands of ideas that can improve the way things are done. In fact, in most large companies there are so many that it is difficult to manage and keep track of them.

My research and work with clients across many industries over the last decade show that a company has, on average, around one idea per employee to improve the way it operates. The real challenge is in effectively capturing these ideas and acting upon them. Before you begin to wonder why these ideas don't go anywhere, most company managers are not dumb. The reason these ideas for improving company performance have not been implemented is because of what I call "barriers"--organizational and human constraints that prevent them from being implemented.

Aha! Brandworks 2010 Reveals New Takes on Customer Engagement

Tue, 6 Jul 2010 05:00:00 GMT
"Don't drink alone, don't think alone."

Bill Winchester stopped short of calling it a company motto, but the creative director of Lindsay Stone & Briggs, after being light-heartedly admonished by his boss, Marsha Lindsay, insisted that it's an appropriate way of looking at design-thinking, a concept that was explored in depth at this year's Brandworks University conference in Madison.

Getting back into marketing

Tue, 6 Jul 2010 05:00:00 GMT
Many small businesses felt the need to pull back on their marketing budgets during the recent recession.

But at the same time, the economic downturn provided a golden opportunity for small businesses to examine the ways and means that they market their products and to refocus their efforts for higher efficiency and results, area specialists say.

"Actually, we have noticed a lot more interest in marketing since the economy began declining," says Kirk Howard, president of Kinziegreen Marketing Group in Wausau. "A lot of businesses are realizing they have to be proactive in growing their businesses during these tough times. They understand that when sales are declining, they need to employ consistent and effective marketing strategies to increase awareness and preference for their products and services.

"When sales are strong, it's sometimes tough to persuade a business that they should invest, but when sales slow down or decline, many businesses suddenly realize they have to do something to distinguish themselves from their competitors and to be more compelling to purchasers."

Tom Marks is president and managing partner of TMA+Peritus in Wausau, which specializes in the Web, branding and content marketing.

"When your marketing team or agency starts down the `best time to advertise is during a recession' road, ask them if the best time to buy a bathing suit is in the dead of winter?" he says. "Maybe it is, maybe it's not. The grim realities of operating a business when the economy is in the stinkpot is that all budgets need to be prepared for the carving knife; yet as marketers, we always feel our budget alone is sacred. You slice the marketing budget and you can count on a sliced share of the market -- oh, and by the way, it will take decades to reclaim the lost share points.

Generating, nurturing sales leads make biggest difference in growth

Fri, 2 Jul 2010 05:00:00 GMT
When it comes to leads, everyone wants qualified ones. But what qualified means from one person to the next often is different.

A common acronym used to describe a qualified lead is BANT: Budget, Authority, Need and Timeframe. Let's look at these one at a time:

Salespeople can double commissions by making right choices

Fri, 2 Jul 2010 05:00:00 GMT
One of the questions I hear most frequently is: "How do I earn more commissions?" The answer is simple. You just have to do one of three things:
1. Increase the number of prospects in your sales funnel.
2. Increase your average commission per sale.
3. Shorten your selling cycle.

Most salespeople pick choice No. 3, but few have a clue what a selling "cycle" is, let alone how to shorten it.

I would say No. 1 is probably the easiest route to take, but few have a system to getting prospects in the first place. And even if they do have a system, they lack the discipline to stick to it.

No. 2 wins the award for most simple, yet it is definitely the toughest to do.

Here is some insight into all three options.

How to Conduct an Interview for an Internal Candidate

Thu, 1 Jul 2010 05:00:00 GMT
Organizations spend the majority of their hiring resources on finding and screening external candidates. But when you need to fill a position, the most cost-effective and practical thing you can do is hire someone from within. In fact, most hiring in companies is done internally. Still, the internal interview is often thought of as something to check off on a hiring to-do list rather than a source of real information. If you already know the person, what else is there to learn, right? Wrong. When conducted well, internal interviews can provide valuable new insight into a known candidate.

Sincere, Positive Recognition - Pass it On!

Tue, 29 Jun 2010 05:00:00 GMT
"You better appreciate the people that are important to you before someone else does." -- Lou Holtz

In conversations with business owners, CEOs and managers in organizations both large and small, one of their top five "common headaches" usually relates to finding, keeping, nurturing and retaining qualified and self-motivated people.

With that headache facing them, it is also interesting how many of these same leaders do not regard targeted praise and recognition as a critical coaching tool. Reasons for not giving praise or recognition include:

- Takes too much time.
- Takes too much effort.
- If you do it all the time, it loses its meaning.
- I don't want to be accused of playing favorites.
- The employee could use this to their advantage at review time.

...and the list of excuses goes on.
Many basic, as well as advanced, leadership training programs highlight the power of positive recognition, both formal and informal, in the workplace. Unfortunately, the implementation is often left at the classroom door due to the type of barriers mentioned above.

Executive Coaching: Soundboard

Fri, 25 Jun 2010 05:00:00 GMT
Being an entrepreneur and business owner can be challenging, satisfying and sometimes scary. You are chief cook and bottle washer and the buck stops with you. You are faced with decisions on who to hire, when to hire and what they should be paid. You also need help managing your cash flow and inventories.

Who you gonna call? Ghostbusters? No. You need to talk it out with your board of directors.

Human Resources: Systems thinking

Fri, 25 Jun 2010 05:00:00 GMT
Question:"As the HR director at my company, I'm spending more time mediating conflicts between work areas. No one seems to see the big picture: that we are here to help one another so the company can meet the customers' needs. There's a lot of competition, blaming and accusing. What can I do to help people see we're all in this together?"

Answer:This is a very common concern. We work with clients to address these kinds of concerns every day. Organizations of all kinds and types are filled with barriers, turfs, territories, and silos. Employees who operate inside these boxes tend to adopt a defended and guarded perspective along the lines of, "We've got our act together ... the problem is over there, with those people ... they are the ones messing things up."

This kind of parochial thinking is, of course, misguided. The adage that, "A chain is only as strong as its weakest link" is applicable here. If Department A is going great-guns but Department B is spinning its wheels, then Department B's futility will dictate how the organization's processes ultimately perform.

Leadership: Have the courage to invite feedback

Fri, 25 Jun 2010 05:00:00 GMT
When was the last time that someone in your organization told you the truth about your leadership? How often do you invite feedback? How safe do others feel about telling you the truth? What do you think you might learn by asking the question?

As an individual rises to the highest levels of leadership, there are fewer and fewer people willing to tell him/her the truth. Marshall Goldsmith, author and executive coach suggests that there are only two problems successful people have with feedback: (1) "They don't want to hear it from us;" and (2) "We don't want to give it."

Employees quickly get the message that they are welcome to tell the boss only what the boss wants to hear.

Well-crafted questionnaire can be salesperson's best power tool

Fri, 25 Jun 2010 05:00:00 GMT
Maybe you're feeling a bit ambitious this summer, building a terraced deck or getting the hands dirty with some designed landscaping, each adding texture and color to your home.

To create that neighborhood magnum opus, you'll need the appropriate tools to ensure the job is done right. If not, chances are your work won't stand out.

Look beyond prices to create value for customers

Fri, 25 Jun 2010 05:00:00 GMT
There is a value perception that goes with price cutting. People often think that something has a greater value when it is priced higher.

I recommend that business owners need to focus on offering more value to the client that does not relate to price.

There are also options to partner with like businesses to offer a sample of another product or service.

FOMC Statements: Side-by-side

Thu, 24 Jun 2010 05:00:00 GMT
Corey Chambas, President & CEO of First Business Financial Services, Inc., posted the following article today. This is a side-by-side comparison of the June 23, 2010 to the April 28, 2010 FOMC statements.

Competitive Theory and Business Legitimacy

Tue, 22 Jun 2010 05:00:00 GMT
The Economist once called Michael Porter the "doyen of living management gurus." Porter is the guru of competitive strategy, the one who told companies that their route to success lay in competing not just against their direct competitors, but against their suppliers and customers as well. A great number of companies have spent the last 20 to 30 years doing just that.

So when Michael Porter says something new, it's worth noting, as with his recent piece for Businessweek.com, "How Big Business Can Regain Legitimacy." The idea of regaining legitimacy implies that legitimacy has been lost, which is precisely Porter's point. And the loss of business' legitimacy is a shame not just for business, but for society at large

Think and Act Like Your Customers

Mon, 21 Jun 2010 05:00:00 GMT
My colleague Alex Slawsby made an observation while we sat in the office of one of our clients the other day. "Look around," he said. "The room is full of products made by the company."

Doesn't seem so fascinating, does it? After all, any member of a "tribe" has markers to demonstrate their allegiance to the tribe. But Alex continued. "Don't you think instead this room should be bursting with products made by competitors? Or other solutions consumers turn to instead of the company's products?"

Understand Basics before Tapping Temporary Staffing

Sun, 20 Jun 2010 05:00:00 GMT
Those not familiar with staffing frequently ask the following questions: How do we work with a staffing firm? What are my obligations? What are the benefits versus us conducting our own search?

Once they learn the basics of staffing, they realize it is one of the best resources to help companies expand their staff with limited risks.

Staffing firms are dedicated to recruit and hire qualified candidates. They have a vast pool of candidates who have already completed the hiring process, with references checked, assessments conducted, and employment status verified. This immediate access to employees provides key advantages, such as a shorter hiring process, access to qualified candidates, and allows companies to "try before they buy." Many companies totally depend on staffing firms.

Considering Disadvantages of Hub & Spoke Management

Fri, 18 Jun 2010 05:00:00 GMT
In one global company, the chief operating officer had 18 direct reports from all aspects of his matrixed organization. He spent the vast majority of his time managing communications with each of them and acting as mediator of their disputes.

Was this a good use of his time? He didn't think so, but he didn't know how to shift this "hub & spoke" style. He lamented the fact he was not able to be as invested in the strategic conversation at the company simply because of how it was structured.

How to Conduct the Director Evaluation Process

Fri, 18 Jun 2010 05:00:00 GMT
Providing feedback to directors on their performance in the boardroom is not a new idea. The first time I conducted a director peer review was in 1997 for the board of the Bank of Montreal, one of the first major North American companies to undertake the process. More than a decade later, many boards are looking to implement a director evaluation process for the very first time. Others that have tried it have met with mixed success: Some boards have found it among their most useful practices; others, a waste of time. If this is an issue your board is wrestling with, here are four key factors to consider.

CFAA Can Help Companies Protect Against Tech-Savvy Ex-Employees

Tue, 15 Jun 2010 05:00:00 GMT
Gone are the days when a disloyal employee loads up his briefcase with customer lists, marketing strategies, customer pricing and other confidential information in the wee hours of the night before he quits his job to go work for a competitor or to go into business for himself.

These days, that same employee doesn't bother with a briefcase or hard copies; he brings a flash drive to work... (see page 8)

When an Opportunity Presents Itself, Don't Get Caught "Missing the Boat"

Tue, 15 Jun 2010 05:00:00 GMT
If you, as a business owner, have missed the boat, it could mean that an opportunity presented itself but you were late in responding and failed to take advantage. You need to have a process to follow...(see page 13)

Company Boards Must Assume Cyber Attacks Will Occur

Tue, 15 Jun 2010 05:00:00 GMT
Cyber attacks are now so common that corporate directors must assume that their companies' intellectual property will be stolen, according to experts at today's Bloomberg Link Boards & Risk Conference in Washington. "Boards can't keep hoping they won't be attacked because they will be," said Val Rahmani, chief executive of Atlanta-based security-consulting firm Damballa, Inc. My colleagues Peter Elstrom and Rochelle Garner wrote about corporate boards and cyber attacks in a story published today by Bloomberg News.

Security experts such as Patrick Morley, CEO of enterprise security firm Bit9 say that attacks are on the rise. Morley came to visit me last week in San Francisco after giving an educational seminar about how to stop malware. He predicts that security will move toward so-called white listing, the practice of defining the software that IT departments will let run on computers and mobile devices. Bit9 has created a global registry of known "good software" and offers a product that acts as a sentry, only letting employees download applications that aren't dangerous.

Performance: Personal branding

Fri, 11 Jun 2010 05:00:00 GMT
by Christine McMahon for BizTimes: You are always branding yourself. Everything you do and say as well as how you engage with others creates an impression and that impression, reinforced over time, becomes your personal brand (PB).

Whether you intentionally create your PB or not, be aware, you are making an impression.

Management: Exit Strategies

Fri, 11 Jun 2010 05:00:00 GMT
By Harry S. Dennis, III , for BizTimes: Vistage / TEC member Carol Coughlin has developed a set of tips for business owners who are positioning their company for sale. Her advice is practical and to the point.

The bottom line: make sure that your financial house is in order.

Tip 1: Your books should be closed by the 15th of each month. That will give you ample time to spot trends from month to month. One of the most common bookkeeping errors to watch for is duplicate entries of revenues or expenses.

Sales: Guard your Time

Fri, 11 Jun 2010 05:00:00 GMT
By Jerry Stapleton, for BizTimes: You've got a customer. In fact, it's a very profitable, long-standing customer that pays its bills and is just generally great to work with.

It's the kind of customer you wish you had more of.

This customer calls and makes a request that causes your company to jump through all kinds of hoops to respond to the request. But it's OK. They're a great account and you want to keep them happy. Heck, they've done this type of thing a few times before and it's always turned out good. So unless they're asking you to do something illegal or something that might send your company under, you're probably just going to comply without giving it too much thought. And that, in my opinion, would be the right thing to do.

A Practical Guide to Branding

Wed, 9 Jun 2010 05:00:00 GMT
Define your brand identity--your product's "personality"--before you spend a dime on advertising or marketing.

Talk to entrepreneurs about their marketing and communications efforts, and they'll often use the words "branding," "marketing," and "advertising" interchangeably. That reflects the pervasive confusion about the terms, says Gail Guge, managing partner of Wilkin Guge Marketing in Ontario, Calif.. "About 15 years ago, 'branding' became a buzzword in the business vernacular, and people still get the words mixed up all the time," she says.

That confusion is unfortunate, because understanding the concepts and how they mesh is vital to every company's bottom line. Studies show companies that market their products or services without first establishing their brand identities are not likely to achieve return on investment. "If you're spending money to advertise and market without being connected to a brand position, you might as well pile the money up and burn it," Guge says.

The Last Word: Ride out the storm

Fri, 4 Jun 2010 05:00:00 GMT
The Great Recession posed challenges for all industries, but the construction industry has been one of the hardest hit. Brookfield-based Hunzinger Construction Co. has been in business for more than 100 years and has constructed some of the Milwaukee area's most prominent buildings. President John Hunzinger reflects on how the industry and his firm are working through the severe economic downturn.

"Having been in the construction business for nearly 30 years, I thought I had seen it all. The back-to-back recessions of 1981 and 1982 posed the greatest challenge to our 100-plus-year-old company since The Great Depression of 1929.

Discover Your Leadership Blind Spots

Fri, 4 Jun 2010 05:00:00 GMT
Too often, leaders demonstrate behavior that sabotages their success and undermines both their team and their organization. To succeed as a manager, you need to learn how to recognize your blind spots and overcome them.

Let's not kid ourselves. We all have blind spots--unproductive behaviors that are invisible to us but glaring to everyone else. Our behavioral blind spots create dire and unintended consequences: They corrupt decision-making, reduce our scope of awareness, create enemies, silos, and camps, destroy careers, and sabotage business results.

In good times blind spots are annoying and frustrating; in tough times they can be lethal.

For Leaders, There Is No Off Switch

Fri, 4 Jun 2010 05:00:00 GMT
Does this mean that I have to watch what I say--and worry about how I act--in every meeting for the rest of my career?" Harry asked.

I had been asked by the present CEO, Jim, to coach his direct report, the potential CEO, Harry, who was an executive vice-president. As part of our coaching process, Harry was asked to seek feedback from all of his key stakeholders--including Jim.

Health Care Calculation for Businesses: Coverage Versus Paying the Penalty

Tue, 1 Jun 2010 05:00:00 GMT
Large and mid-sized businesses have some calculating to do regarding the recently enacted Patient Protection and Affordable Care Act, the federal health care law, but that calculation will not be entirely monetary, according to Dr. Craig Samitt.

Samitt, president and CEO of Dean Health System in Madison, said the comparison small and mid-sized businesses must begin to make is the respective cost of providing insurance versus the cost in penalties for not providing it. That final decision does not have to be made until January of 2014, but provisions clearly prescribe that employers will have this choice themselves. (Qualified small businesses would be able to purchase insurance for their employees through state-based Small Business Health Options Programs or SHOPs.)

Management: Employee engagement

Fri, 28 May 2010 05:00:00 GMT
Many businesses are leaner than ever, yet highly effective management is required to compete in today's world. It is imperative that effective management and management practices are consistent throughout your organization.

Without consistency in management, underperformance will be the norm.

It doesn't have to be this way, however. Many companies today are producing strong profits on flat revenues. They have found ways to increase efficiencies and create positive momentum.

How do they do it? You can bet that it involves engaging employees at every level of the organization. Let's look at one example of how this works.

How to Prevent Hiring Disasters

Thu, 27 May 2010 05:00:00 GMT
Hiring someone can be a time-consuming and nerve-wracking task. In an ideal situation, you find the perfect person for the position--someone who hits the ground running, increases your unit's performance, and eases your workload. In the worst-case scenario, your seemingly perfect hire turns out to be far from it and you spend months dealing with the aftermath, including finding a replacement. Either way, it can feel like a referendum on your judgment. So how can you be sure your experience is more like the former than the latter? If you outline and adhere to a disciplined process, you can greatly improve your chances.

Price of lumber and wood products on steep incline

Wed, 19 May 2010 05:00:00 GMT
Are you aware of the recent increase in the price of lumber and wood products? AccuVal closely follows the changing markets and pricing for a wide variety of commodities. You should be aware that the price of these products has been on a steep incline -- good news for lumber and wood product producers who should see some margin improvement and potentially some increased availability of working capital from a revolving credit facility on inventory. Prices have surged over the past several months from near modern lows to levels not seen in about 4 years. Here's a quick recap of some pricing trends we've been observing in the market...

Click here to learn more.

Source: AccuVal Associates, Incorporated

About Source: AccuVal is a global business valuation and consulting firm that helps companies "up" their success by providing a broad range of valuation, advisory and asset management solutions, including appraisals of the enterprise, shareholder equity, bonds, intangibles and intellectual property, machinery and equipment, inventory, real estate and accounts receivables in over 100 industries worldwide.

Time Management: Technique or Attitude?

Tue, 18 May 2010 05:00:00 GMT
Time management has been and always will be an oxymoron. We have all there is, yet none of us ever seem to have enough. At best we can learn to work with the never-ending passage of minutes and hours. No matter how often we say there are "never enough hours in a day," there will continue to be 24 just like yesterday, today and tomorrow. When business groups are asked if they have been to a time management seminar, at least 50% raise their hands. However, when these same people are asked if they are in control of their time, very few say "yes." So what can one do? Let's look at four techniques, and then discuss attitude.

Technique 1: Time Log

Taking the Temperature of Business Executives

Tue, 18 May 2010 05:00:00 GMT
As the Memorial Day turn approaches, and the warm summer weather arrives (in theory and in hope), IB conducted a survey to glean what area businesses are still worried about, and what makes them optimistic over the next six to 12 months.

Nationally, the economy appears to be turning a corner with three consecutive quarters of economic growth and two straight encouraging monthly jobs reports, but economists are still all over the map on the strength of the unfolding recovery. Skeptics cite the under-employment rate, the government's broader measure of unemployment, which actually increased slightly to 17.1% in April and will take time to whittle down.

Our recent survey, conducted via e-mail, reflects this lack of consensus.

The Last Word: Work-life balance

Fri, 14 May 2010 05:00:00 GMT
"The greatest struggle in my life the last 30 years has been balancing my work life and family life, striving to fulfill at the highest level my roles as employee, employer, leader, attorney, community contributor, mother, wife, daughter, sister and friend. What helped me most was to define my priority that the needs of the family come first, and that I would not deprive myself of the richness that comes from living a close family life.

Leadership: Overwhelmed?

Fri, 14 May 2010 05:00:00 GMT
These are indeed strange and turbulent times. Health care reform has ushered in a whole new generation of unknown government policy. Unemployment remains high and isn't likely to subside anytime soon.

Afghanistan can now be characterized as the longest offshore war other than "the real wars." Small businesses, which account for more than half of our country's GDP, can't really predict whether things will get better or worse.

So what can we do?

Business owners, senior execs, employees and even our families all want to know. Here are a few ideas that I've seen work over the past 40 years.

Southeastern Wisconsin Q1 2010 Industrial Market Report

Tue, 11 May 2010 05:00:00 GMT
The Dickman Company of Milwaukee released Southeastern Wisconsin industrial market statistics for the first quarter in 2010 and noted some interesting trends. For the eight county area of Southeastern Wisconsin, the overall vacancy rate increased from 8.7% in Quarter 4 of 2009 to 9.0% in Quarter 1 of 2010.

Click here to download the full report.

7 Steps to Effective Delegation

Mon, 10 May 2010 05:00:00 GMT
A working definition of effective delegation for an individual in a leadership role: "The extension of oneself through another person/group." When done well, the manager enhances coaching skills, helps others along their career paths, builds a sense of team accountability and, if done very well, finds time to actually address other priorities. At the same time, the individual gets the opportunity to learn and grow, feels he/she is a more critical part of the team, and gains skills that will make him/her more promotable.

Here are seven suggested steps...

Read full article at http://www.ibmadison.com/leadertoleader?id=364.

Leadership: Reboot your creativity with a retreat

Mon, 10 May 2010 05:00:00 GMT
In the April edition of the Harvard Business Review, authors Heike Bruch and Jochen I. Menges offer the results of a nine-year study which identifies the increasing phenomenon of organizational burnout.

They suggest that more organizations are falling into what they describe as the "Acceleration Trap."

The process begins when leaders ask organizations to rally around a particular initiative. Employees work extended hours, the pace of the project accelerates, goals are achieved and success is realized. Rather than appreciating that this pace works as an exception, the "Acceleration Trap" becomes institutionalized when this "exceptional burst of achievement" becomes the new normal.

Read full article at http://www.biztimes.com/news/2010/4/30/leadership-reboot-your-creativity-with-a-retreat.

FOMC Statements: Side-by-Side

Fri, 30 Apr 2010 05:00:00 GMT
Corey Chambas, President & CEO of First Business Financial Services, Inc., posted the following article today. This is a side-by-side comparison of the April 28, 2010 to the March 16, 2010 FOMC statements.

The article is posted at http://www.firstbusiness.com/data/linkedin/FOMC043010.pdf.

Communication: A healthy corporate culture

Fri, 30 Apr 2010 05:00:00 GMT
Question: "I manage a team of three supervisors. We've been having some difficulty getting the employees in our department to work together. We've also had some ups and downs with other departments. Our charge from top management is to do more with less. We're all feeling the pressure to step up the pace. I obviously want us to succeed but tensions are rising and I'm concerned. What's your advice for moving things forward?"

It seems to me that you might have been focusing more on the technical aspects of the situation and less on the interpersonal. That might be the reason why there is friction.

SBA Recovery Lending Extended Through May

Fri, 16 Apr 2010 05:00:00 GMT
WASHINGTON - President Barack Obama signed legislation yesterday providing $80 million in additional funding to continue important enhancements in the U.S. Small Business Administration's two key small business loan programs. The enhancements, first made available under the American Recovery and Reinvestment Act, include a higher guarantee on some SBA-backed loans and small business fee relief.

The SBA estimates the $80 million will support about $2.8 billion in small business lending under the 7(a) and 504 programs.

See full artilce at: http://www.sba.gov/news.

Tips & Techniques for Engaging Customers With Social Media

Tue, 6 Apr 2010 05:00:00 GMT
Many organizations have realized the importance of integrating social media tools into their online customer engagement armamentarium. Among the tools that are being adopted are Twitter Feeds, Blogs, RSS Feeds, Facebook Pages, Myspace Pages, LinkedIn Profiles & Groups, Google Buzz and YouTube Channels. Some organizations, especially in the consumer space, are experimenting with location-based mobile check-in tools like Gowalla or the increasingly popular Foursquare, for generating loyalty-based engagement including recognizing the "Mayor" or highest utilizer or consumer of your service. You can find out more about Foursquare here.

Selecting which tools to adopt is going to vary based on your industry, organizational culture, resources you're willing to invest, the nature of the target audience(s) you are pursuing and most importantly your goals. For some organizations, it will mean embracing many of these social media tools, while for others, it will be adoption on a more selective basis. If you're relatively new to this space, you're going to want to start small and experiment with a limited number of tools once you've identified your goals.

Money Managers Coax Tepid Investors Back into the Market

Tue, 30 Mar 2010 05:00:00 GMT
Don't let the stock market's comeback fool you, money managers say there still is a lot of wealth sitting on the sidelines due to a crisis of confidence in institutions like Wall Street and especially Congress.

The stock market hit a low of just above 7,000 in early 2009, losing nearly half its value in a two-year period, but it has steadily climbed back toward pre-recession levels despite boondoggles, recession, bailouts, and mounting government debt.

Financial planner Tom Carroll, senior vice president and branch manager for Robert Baird & Co. in Madison, and Joan Burke, president of First Business Trust & Investments, represent wealth management organizations that aren't too big to fail and that rejected the risky products that were symbolic of the now discredited "financial supermarket" model. As the economy struggles to gain some footing, they hope to bolster investor confidence through education, stock market history lessons, and timely due diligence.

Click here for the full story.

SBA Recovery Lending Extended Through April 30

Mon, 29 Mar 2010 05:00:00 GMT
President Barack Obama signed on Friday legislation extending through April the U.S. Small Business Administration's ability to provide enhancements in its two largest small business loan programs. The enhancements, first made available under the American Recovery and Reinvestment Act, include a higher guarantee on some SBA-backed loans and fee relief.

The SBA estimates the $40 million extension will support about $1.4 billion in small business lending.

See full artilce at: http://www.sba.gov/news.

FOMC Statements: Side-by-side

Wed, 17 Mar 2010 05:00:00 GMT
Corey Chambas, President & CEO of First Business Financial Services, Inc., posted the following article today. This is a side-by-side comparison of the March 16, 2010 to the January 27, 2010 FOMC statements.

The article is posted at http://www.firstbusiness.com/data/linkedin/FOMC031710.pdf

Lean and Green

Tue, 16 Mar 2010 05:00:00 GMT
The manufacturing industry has never had a glamorous public image, and to most people, it is not considered a "green" business category.

Historically, many large manufacturing operations have been large producers of pollutants - sending carbon dioxide, sulfur, mercury and other toxic chemicals into the environment.

However, most of the Wisconsin manufacturers that have survived the Great Recession have, by necessity, become leaner and greener companies, greatly reducing their carbon footprints and lowering their emissions of harmful materials, while generating significant cost savings.

Read full article at BizTimes.com.

Business inventory levels are kept low

Thu, 11 Mar 2010 06:00:00 GMT
Businesses trimmed inventories at the wholesale level again in January even though sales rose for a 10th consecutive month. The dip in inventories underscored that businesses remain cautious about restocking their depleted shelves. Read more at www.postcrescent.com.

Business Survey Shows Better Hiring Outlook

Wed, 10 Mar 2010 06:00:00 GMT
The outlook for hiring in the Madison area looks more promising for jobseekers, according to a recent survey of businesses.

Many businesses have been cutting back to shore up their bottom line, but on Wednesday a Manpower survey asking businesses about their employment plans shows more businesses in Madison are feeling positive about the future. See full article at Channel 3000.com.

Management: Thank your employees

Fri, 5 Mar 2010 06:00:00 GMT
During the 18th century, British sailors were rewarded with an extra ration of rum after a successful voyage. Now that your employee and management teams have successfully navigated the turbulent waters of the economic tsunami, how will you reward them? How will you maintain motivation, morale and reduce the anxiety associated with the recession?

At a recent COSBE (Council of Small Business Executives) meeting, members of the board shared success stories on how, with the assistance of their employees, they were able to navigate around the economic tsunami.

Read full article at: http://www.biztimes.com/news/2010/3/5/management-thank-your-employees.

Networking: Open your mind to social media

Fri, 19 Feb 2010 06:00:00 GMT
Are you tweeting, posting, linking in or blogging yet? If not, you're missing out on one of the most useful and inexpensive tools for expanding your business.

These (and other) social networks are having a more powerful impact for small business organizations than for huge ones. "Follow me on Twitter" signs are appearing on the windows of small businesses all over America and in many other countries as well.

I've talked to some business owners who have those signs on their windows. Some told me they were saving thousands of dollars a year by using these networking services and generating new sales leads.

FOMC Statements: Side-by-side

Thu, 28 Jan 2010 06:00:00 GMT
Corey Chambas, President & CEO of First Business Financial Services, Inc., posted the following article today. This is a side-by-side comparison of the January 27, 2010 to the December 16, 2009 FOMC statements.

The article is posted at http://www.firstbusiness.com/data/linkedin/FOMC012710.pdf

Raising Capital from Angel Investors & Venture Capitalists

Thu, 28 Jan 2010 06:00:00 GMT
Tim Keane, founder of the Golden Angels Network and Board Member of First Business Bank - Milwaukee, recently posted at his blog, Startups and angels: Along the way to success, some advice and thoughts for entrepreneurs negotiating funding rounds. Tim, a successful entrepreneur and investor, gives insight on what investors are thinking as they negotiate with entrepreneurs. The post includes a useful spreadsheet designed to help entrepreneurs understand key points to term sheet negotiations. Follow this link to the post.

About Wisconsin Angel Network
The mission of the Wisconsin Angel Network (WAN)is to build early-stage capital capacity throughout Wisconsin, increasing the number and amount of equity investments in Wisconsin's entrepreneurs. WAN was founded in January 2005 as an umbrella organization providing services and resources to the early-stage investing community. WAN does not operate a fund or make recommendations on potential investments. WAN is a public-private initiative rooted in Governor Jim Doyle's Grow Wisconsin plan and the Legislature's Act 255 initiative, it is operated by the Wisconsin Technology Council. Visit our Members' Page to learn more about the individuals and groups that comprise the Wisconsin Angel Network. To learn more about the Wisconsin Angel Network, download our most recent presentation or read our newsletters. Visit www.wisconsinangelnetwork.com/about/.

About First Business Bank - Milwaukee
First Business Bank - Milwaukee was established in 2000 to provide a full range of commercial banking services to Milwaukee-area businesses and business people. It is chartered as a unit bank with a CEO, not a branch president, and a board of directors rather than an advisory board. This structure allows it to understand Milwaukee-area businesses and respond quickly and proactively to their needs. For additional information, visit www.firstbusiness.com or call 262-792-1400.

80/20 -- The Big Picture for Great Big Pictures

Tue, 1 Dec 2009 06:00:00 GMT
Alice Torti knows that painful decisions are associated with it, but she would recommend the 80:20 principle to almost anyone. Torti, the COO of Great Big Pictures, a Madison printer that makes in-store graphics for large retailers, has not only seen profitability soar -- 58 times what it was -- after putting 80:20 into practice, but she also intends to use this tool to continually fine tune her printing business.

Read more at http://ibmadison.com/trends?id=311.

The New Banking Environment

Fri, 2 Oct 2009 05:00:00 GMT
A solid relationship with your banker is more important than ever before. Why is that?
With the current economic environment, surprises (for both the banker and client) are more stressful than ever to deal with. Having a solid relationship with your banker is now even more important in order to work together and get through difficult times. Submitting financial information on time, and delivering difficult news as early as possible, is important. Telling your banker upfront shows concern and a proactive approach on the client's part.

What is the most common misconception people have when talking to banks about financing?
Many clients feel that a banker is only interested in a company's numbers or performance. Although the numbers are very important, bankers also rely heavily on the strength of the management team, projections, and the company's business plan.

Read full article.

Reorganizations That Last

Tue, 23 Jun 2009 05:00:00 GMT
Four out of five organizations have gone through some type of redesign initiative over the past 12 months. This may not be big news since during the recession, many companies were quick to undertake reorganizations in order to reduce costs, improve efficiencies and increase the quality of service. However, you may be surprised to learn that more than half of these organizations expect to go through another major redesign over the next 12 months. Why? While companies have had relative success in hitting their cost cutting targets, the results might be masking a significant problem that's growing in the organization, and threatens to undermine overall organizational outcomes in the long term--the cost to employee performance as a result of these redesign initiatives.

Over the past year, the Corporate Leadership Council (CLC), a program of the Corporate Executive Board has interviewed more than 260 organizations around the world about more than 400 redesign initiatives they've undergone over the past 18 months. While 90 percent of those organizations reported hitting the cost-cutting targets after one year, only 60 percent hit the employee performance targets for their redesign initiatives. Many of these redesign efforts resulted in a work environment with unclear decision-making authority, reduced collaboration or poor alignment between an employee's interest and their new job. To address these challenges and improve employee performance, most companies have focused on change management activities such as improved communication or more coordinated implementation planning and decision making after a reorganization.

Certainly these are important activities yet, according to CLC analysis, they are not the real differentiators in improving employee performance. In fact, the companies that have been successful in not only achieving their cost-cutting goals but also their employee performance targets, have chosen to focus on two additional areas which can significantly impact the overall success of a company's redesign efforts: defining workflows and monitoring the success of organizational design.

The Customer Satisfaction Survey Snag

Fri, 19 Jun 2009 05:00:00 GMT
Customer satisfaction has been a major business buzz phrase for more than a decade. In his 2001 book, The Loyalty Effect, Fred Reichheld claimed that customer loyalty is a dominant determinant of success in business. He purported, for example, that a 5% improvement in customer retention for an advertising agency can create a 95% increase in average profit per customer over time. He claims similar (though less extreme) effects in most other industries.

To address the loyalty question, consultants often persuade companies to spend time and money trying to ensure that they know precisely how pleased their customers are. Theoretically, this is vitally important information. Empirically, however, it can be of little worth. In our experience, many large companies kid themselves about how accurate a picture they really get. So how do you get truly worthwhile feedback?

Managers Must be Decisive in Handling Problems

Mon, 12 Jan 2009 06:00:00 GMT
Good managers don't clean up messes caused by their staffs. They prevent messes from happening in the first place.

Division head Carl finally had to fix the problems in a department run by senior manager Brenda. He transferred one supervisor and three high-ranking staff members to other departments. He was satisfied: Once again, he showed that he could be decisive and clean house.

But Carl had consistently ignored advice that the department head was a problem, and didn't make the changes necessary to keep the problems from resurfacing later.

Looking Ahead

Thu, 1 Jan 2009 06:00:00 GMT
Optimism for 2009 Tempered by Economic Realities

Michael Noone sees better days ahead for the economy of Northeast Wisconsin. Given all that's occurred in 2008, from the housing market collapse to the financial freeze to creeping unemployment and finally the roller coaster that is Wall Street, it's hard to find much to be optimistic about. The country is now officially in recession that many predict won't end until 2010.

Yet, Noone is optimistic. So are a lot of people who do business in Northeast Wisconsin.

"I think that from any perspective, 2008 was not a good year," says Noone, president of First Business Bank - Northeast. "For 2009, people in this area are looking for a better year."

Noone's optimism is not just wishful thinking, but a reflection of the responses to a recent economic survey of the area commissioned by First Business Bank and conducted by the A.C. Nielsen Center for Marketing Research at the University of Wisconsin - Madison School of Business. The results were presented Dec. 18 at the First Business Bank Economic Event at Butte des Morts Country Club, sponsored by the bank, the University of Wisconsin - Oshkosh, and Insight magazine.

Conducted between September and October, the survey of CEOs, CFOs, presidents, and business owners found that many businesses had a flat or down year in 2008, with almost as many businesses - nearly 43 percent - reporting an increase in profitability in 2008 as there were reporting a decrease, also about 43 percent.

The optimism comes from looking at expectations for 2009, where more than 70 percent of those surveyed project they will at least do the same as 2008, if not better. The number of businesses forecasting a decline in profitability drops to slightly under 30 percent.

Noone says the results are a reflection of the regional economy.

"This is the Valley. The coasts have the problems first, and we don't usually see the problems as quickly or as extremely," he says. "This is a conservative area. We are still doing well from a manufacturing perspective."

Some of the optimism for the 2009 outlook is tempered by the reality of when the survey was conducted. The responses were collected just prior to the crises in the credit markets. While businesses had been facing recessionary pressures for some time, the extent of the problems nationally erupted into the public consciousness after the data was collected.

That can't be ignored when looking at the projections for 2009, says E. Alan Hartman, provost of the University of Wisconsin - Oshkosh, who led the panel presentation last month.

"The full impact of what has happened recently may not be reflected," Hartman says.

That may not be a bad thing, says Scott Converse, director of technology programs at the UW - Madison School of Business.

"There was a decline that had been occurring throughout that time span, but the volatility that we have felt and heard and seen daily through the news media was not present," says Converse, who led the panel discussion of the results for Dane County. "It gives us a more accurate estimate tool."

The results are consistent, and there does seem to be a mood of optimism heading into 2009 for the local economy.

Of course, some sectors see things more brightly than others. The technology sector reported results that were more negative than many other business sectors. It was the only category where more than 50 percent projected a decline in profitability in 2009. Yet, the sector is quite bullish on sales opportunities for 2009, with 71 percent reporting they expect sales to increase. Part of that anomaly may be the smaller number of responses by businesses in the technology category. About 2 percent of the businesses providing data for the survey classified themselves as technology companies.

For employees, 2009 is projected to look a lot like 2008. While there were some major layoffs in the region, most companies reported modest changes to both payroll and the number of employees.

Most changes in the number of employees and wages tended to be in the 1 to 3 percent increase range for 2008. For 2009 more than 85 percent of the companies surveyed reported no change or an increase in employees, while more than 95 percent see wages staying the same or increasing.

Overall, the survey shows most businesses have a moderate expectation for 2009. Most companies are projecting revenues to increase and few are expecting cost increases. How much the recent economic turbulence changes that outlook remains to be seen, Hartman says.

"I think you have to be careful when you frame the discussion, but you can also talk about the resiliency of Wisconsin," Noone says. "We tend to not have the highs and lows of other areas."

Key Results

The First Business Economic Survey was conducted in September and October of 2008 and was sent to 7,500 businesses in Northeast Wisconsin. A total of 690 responses were received. The survey asked questions regarding eight economic indicators: sales revenue, profitability, total operating costs as a percentage of revenue, capital expenditures, number of employees, wage changes, pricing, and operating capacity.

Sales Revenue

2008 Results
54.4% increase
8.6% no change
37.0% decrease

2009 Results
53.0% increase
17.6% no change
29.3% decrease

Profitability

2008 Results
41.8% increase
14.6% no change
42.6% decrease

2009 Results
44.9% increase
26.2% no change
29.4% decrease

Employment

2008 Results
25.6% increase
49.8% no change
24.6% decrease

2009 Results
23.3% increase
62.4% no change
14.3% decrease

Wage Change

2008 Results
69.1% increase
24.9% no change
6.1% decrease

2009 Results
62.1% increase
33.3% no change
4.6% decrease

Executive Q&A - Mark Meloy

Sat, 13 Dec 2008 06:00:00 GMT
Madison Bank Head Targets Niche Market

First Business Bank - Madison has no teller windows, just one office and fewer than 1,500 customers.

But the bank has $735 million in deposits locally and has the sixth-largest deposit market share in the Madison area. It has increased deposits by 84.5 percent over the past five years.

Founded in 1990 and part of the publicly traded First Business Financial Services of Madison, the bank has stuck to a purely business model instead of trying to expand into retail banking, said president and chief executive Mark Meloy.

First Business Financial Services has six subsidiaries including business banks in Madison, the Milwaukee area, and Oshkosh-Appleton, as well as First Business Trust & Investments, First Business Capital Corp., and First Business Equipment Finance.

Meloy grew up in Platteville and graduated from Loras College in Dubuque, Iowa. He came to First Business Financial Services after 17 years at what now is U.S. Bank, becoming head of the Madison bank in 2006.

Q: How is First Business Bank different from other banks and what has contributed to its success?

A: The obvious things that one would recognize right away are we don't have a multitude of branches. We have one location here in Madison, one location in the Milwaukee area, and one in Oshkosh and Appleton - sort of one per community.

The reason we do that is because we've carved out a very particular niche of the marketplace - small business and low end of the middle-market-type businesses. For that marketplace, the numbers of locations are less important because those types of bank clients get their deposits to the bank in a number of different ways and in mostly fairly high-tech ways, either electronically by ACH (Automatic Clearing House), wire transfer, or over the Web through our remote deposit product. In the pre-Web days, we had - and we still have - a courier service.

The second thing is the number of clients that we have. A bank our size would have about 20,000 to 25,000 account holders if we were a retail and commercial bank. With our business bank focus, we probably have 1,800 clients across our company. In Madison, we probably have 1,300 to 1,400 clients.

The comparison I like to draw is to think about the teacher-to-student ration in school systems. I sort of describe it as the banker-to-client ratio in our model, which is very much tilted to the advantage of our clients where they get a lot of personal attention that enables us to be very proactive in the relationship. It's frankly related to the growth we've been able to enjoy. As we bring on new business, we're not losing existing business out the back door because we are paying attention to who our clients are.

Q: Has the bank made any adjustments in lending or underwriting due to the struggling economy?

A: Some people have accused us of being conservative and I've quickly turned it around and said we're not conservative, we're consistent. I don't think we've made any significant changes in underwriting and I would emphasize that we look at lending the same way all the time. During the boom years, we were doing it the same way then as we did 10 years prior to that and the way we do it today. Did we refine things over time? Absolutely. Technology allows us to do that and information allows us to do that. But the basic tenets of underwriting we've tried to adhere to and have throughout our history.

Confidence plays a big part in credit on both sides. Certainly there are opportunities out there. We have looked at some very nice new opportunities in the last couple of months in the height of the bad financial news nationally where the prospects have been banking someplace else for an extended period of time and for whatever reason their relationship with their longtime previous provider has changed. That's created some discomfort for them and created an opportunity for us to show them our model.

We do have commercial real estate as part of our loan portfolio. That's a common characteristic of most Midwestern banks and Dane County area banks. Through the history of our company, we've had very good loan-quality experience.

Q: Do you think business banks will avoid the financial problems that have afflicted banks focused on home mortgages or do you think the impact has just been delayed?

A: There are other business-type banks across the country and we measure ourselves against some of those banks in key factors, particularly credit quality. We stack up very well against those other business banks. We've really taken the model probably further than other business banks because we're not trying to serve the mass market. We don't have teller lines. Other business banks have kind of tweaked into that area.

Just saying you're a business bank doesn't mean you're immune to national financial problems. We benefit from the Madison local economy. We're not immune to the economic woes, but we don't get the pendulum swings they do on the coasts. I think the purity of our model allows us to serve our clients better than other banks.

I don't think we're at the end of the national financial problems. I don't think we've bottomed out totally yet. In a Dane County economic survey we did recently, one of the telltale questions in looking forward to 2009 was that about 60 percent of the business owners projected 2009 to be better than 2008. This is the sixth year we've done that survey and it's the first year that's been under 80 percent. I think there's less confidence out there.

Q: What are the plans for First Business Bank over the next year regarding expansion or new products?

A: Over the past two years, we've invested in people and business units. Where we are now is a time to continue to leverage those investments. We put a bank in the Fox Valley a couple years ago. We've positioned our overall company to be nimble as far as what economic conditions present.

Mark Meloy is president and chief executive of First Business Bank - Madison at 401 Charmany Drive. The bank, which is part of First Business Financial Services, is a niche player in the Madison banking market.

Business Credit and Northeast Wisconsin

Tue, 2 Dec 2008 06:00:00 GMT
Credit Remains Available for the Creditworthy

Northeast Wisconsin is frequently said to be more level, economically speaking, than the East or West coasts -- the peaks are not as high, but the valleys are not as low.

If true, that appears to be a positive for Northeast Wisconsin businesses seeking credit. So far, according to area business lenders, the business credit freeze and the mortgage crisis that staggered the economy in the fall has had little effect here.

"The general environment is there continues to be available credit, I think, in the Valley for good solid creditworthy companies or projects, so I don't think that's changed," says Dave Coggins, president of the Business Lending Group, a consortium of four area credit unions.

"There's plenty of liquidity available for good customers," says Jim Wilson, president of The Business Bank in Appleton. "We still assess credit based on how they're doing."

"We haven't been touched by the mortgage debacle, so our situation is significantly different from our perspective," says Mickey Noone, president of First Business Bank-Northeast in Appleton. "From our eyes, it's all good; we don't have the problems retail banks currently have.
"From our eyes, it's a world of opportunity -- our competition is the big regional and national players, and it's our opinion that, when they make changes, it's at the top and it filters down so it's not reflective of the local situation."

Effects of the national credit crunch have been felt in certain business sectors and on the margin.

"I don't think that's necessarily affecting real firm institutions dramatically," says Coggins. "I think concerns about the economy, as they always do, mean a little less willingness to stretch on unproven projects." He adds that had the national economy been better, credit standards might be "a little less stringent," but that would be based on the economy.

"You need to focus on quality and keep your standards high," says Noone. "Here in Northeast Wisconsin, anyway, manufacturing is going quite strong; even in the commercial real estate market, there's still some opportunities, but it has slowed considerably."

Wilson says land development is "a difficult environment, and will be. It affects things depending on the ripple effect -- for instance, the subprime situation; it depends on what industry you have." Small manufacturers, however, are doing well now, he adds.
Wilson is not seeing payment problems among his customers, but "a precursor of our business to that is margin issues, profitability, but our delinquencies are pretty good."

Coggins believes underwriting standards are tightening on projects that are "not proven or a company that's trying to expand without a long track record -- the entrepreneurial ventures that need capacity but don't have a track record tend to get squeezed out at a time like this."

"You certainly can't rely on what you've done in the past," says Noone. "Certainly most banks have changed their standards, when it comes to policies and procedures, when it comes to due diligence; you have to look at it with both eyes open."

Another factor might be whether a financial institution is based in this area or is part of a larger national company.

"We've been able to take advantage of some of these situations and pick up some nice clients," says Noone.
"Locally owned financial institutions tend to be a lot more steady," says Coggins. "In times like this they tend to not be so driven by national macroeconomic conditions."

"There's a drive for liquidity for large banks -- most banks, if they're growing at all, use some wholesale," says Wilson. "There's plenty of money available, but it affects the price of money, which affects the customer."
One unknown is the impact of the consolidation of national banks as a result of the financial industry bailouts -- Bank of America's purchase of Merrill Lynch and JPMorgan Chase's purchase of Bear Stearns and Washington Mutual Inc.

"How that plays out and how that impacts local institutions is something of interest, but I don't know how to predict that," says Coggins.

Is the stereotype of lower highs and higher lows in Northeast Wisconsin true?
"Certain industries are always much more hard hit, but I think whether it's housing prices or economic impact, we don't get impacted as much by spikes and valleys," says Coggins.
Wilson says both the economy in general and housing in particular are "better" now in Northeast Wisconsin -- "We've never had the great highs or lows."

"The Midwest is not on either end of the spectrum, and most companies have felt this coming for some time," says Noone, pointing to changes in the paper industry.

While business credit appears at least somewhat immune to the national economy at the moment, that may not remain the case.

"The economy is weakening -- I don't think there's any question, especially on the retail side, and that's two-thirds of the economy, so that's going to definitely affect us," says Wilson. "To that extent, what happens in the nation affects us."

"The challenge for financial institutions is to be as steady as possible, not overly optimistic in good times and too restrictive in bad times, so they can have a steady, responsible financial source in good times and in bad," says Coggins.

Northeast Wisconsin bankers still seem optimistic that this area will do better than the nation as a whole. "What kind of people weather a storm like this? Conservative people," says Wilson. "A great deal of this problem was created by excessive leverage. Most of the people we deal with are conservative people with strong balance sheets, so they don't have as much leverage. It's not that they won't borrow, but they're not leveraged to the same extent as other parts of the country."

Noone predicts that 2009 will be "...relatively the same as they are today, but improving thereafter. We're not anticipating a drawn-out economic impact. There are still good clients out there that are operating successfully in most industries; you just have to find them."

Why Traditional Recession Tactics Are Doomed to Fail This Time

Tue, 21 Oct 2008 05:00:00 GMT
Boardrooms need to recognize that the macro crisis requires decision makers to confront fundamental transformation on three levels, argues Umair Haque.

How should boardrooms respond to the macro crisis? Is it just a case of recession-as-usual: budget-paring, personnel-slashing, and portfolio-trimming?

Not a chance. The tactics of recession-as-usual are neither necessary nor sufficient for firms to weather the global economic superstorm--because it's no ordinary squall, but a once-in-a-lifetime gale ripping up the very foundations of the global economic order. Rather, the macro crisis requires decision makers to confront fundamental transformation on three levels.

The first and simplest level is a change in global patterns of savings, investment, and consumption. For too long, the poor have financed the rich. China and other emerging markets have lent to the US so Americans could buy Hummers, McMansions, and Frappuccinos. But this never made sense--it was deeply unsustainable; the macroeconomic equivalent of a giant planetary fossil fuel engine. The days of export-led growth--and it's flipside, force-fed consumption--are numbered.

Commercial Real Estate Forecast for Dane County Warm to Partly Cloudy

Wed, 4 Jun 2008 05:00:00 GMT
The column below reflects the views of the author, and these opinions are neither endorsed nor supported by WisOpinion.com. This year's news headlines paint a cloudy picture for real estate in general. In fact, the residential real estate market across the country has seen some significant price declines. This is complicated by the sub-prime credit mess and a slowing economy. A quick recovery is unlikely.

What few people recognize is that the forecast for commercial real estate is not quite as cloudy. Commercial real estate includes office buildings, warehouse and manufacturing facilities, and retail space. Commercial markets are not facing the selling pressure of residential markets. With the exception of some retail spaces, most commercial markets are in equilibrium with vacancies running about 10 percent. When vacancies rise above 10 percent, owners are forced to give rent concessions. When they fall below 10 percent, demand exceeds supply leading to more building.

The strongest commercial properties are in the office building, warehouse, and manufacturing facilities. Lease rates are stable and growing modestly. Landlords should be able to increase rents in line with inflation. And unlike residential properties, values of commercial properties in these markets have not fallen.

On the other hand, retail spaces are facing some challenges due to a declining economy and falling consumer spending. The residential refinancing boom of a few years ago, fueled by rising residential real estate prices, fed a lot of consumer spending. Decreased home equity is now having the opposite effect. This puts pressure on retailers causing some to put expansion plans on hold, or worse, to close up altogether. As a result, we forecast fewer new retail leases and project that some existing leases may lapse.

Fortunately, Dane County continues to have a stable real estate market overall. The region has had a strong and growing economy. But a few years ago, we thought Madison real estate showed signs of being overpriced with building owners commanding prices that weren't supported by the cash flow, especially in the residential rental markets. Today, the overall market is more fairly priced. Commercial real estate prices in our market are rising at a slow but steady rate.

Commercial real estate investors may be surprised by the impact, or actually the lack of impact, of declining interest rates. While the Federal Reserve has dramatically reduced short-term interest rates, this has actually "reshaped" the yield curve into a more traditional upward slope with lower rates for short-term debt and higher rates for longer maturities. Prior to this year, the yield curve was actually inverted with some shorter-maturity debt commanding higher rates. For most commercial borrowers, this has meant mortgage rates have not declined, and in some cases, have even risen.

Going forward, with a few caveats such as the uncertainty in retail markets, we should continue to see a relatively healthy commercial real estate market. Prices should rise gradually, in line with inflation. If you are considering purchasing or refinancing commercial real estate, keep in mind the following tips:

1. Carefully consider whether you finance your purchase with fixed or variable rate debt. Fixed rate debt allows you to lock in an interest rate and create a predictable expense and more predictable cash flow, especially if you have strong tenants. On the flip side, some floating rate debt holders have benefited of late as interest rates have come back down. Choosing variable rate debt can be risky, but if rates stay low it may be a way to save on interest expense. Some businesses chose a combination of both fixed and floating debt.

2. Do a thorough analysis of your tenant mix and the underlying financial strength of your tenants. A tenant in default and vacancies are property owners' worst enemies. The foregone rent can never be replaced.

3. Cash is king. It is important to point out to a lender that you or your business has strong cash reserves allowing you as an owner to carry the property in troubled economic times.

4. If you don't have cash or the ability to come up with a 20 percent down payment, it does not mean you are out of luck. There are a number of local and national organizations who will provide financing to small businesses. An example locally is the Dane County Development Corporation. For a listing of development organizations in Dane County communities, visit this site.

While the current credit environment may make finding financing on some projects challenging, we believe lenders and borrowers alike are being prudent in today's economy. This is healthy for everyone.

-- Larson and Karnick both work for First Business Bank, Larson as a senior vice president and Karnick as an assistant vice president. For more information on various commercial lending strategies, visit the First Business Website .

The Indispensable Succession Plan

Thu, 29 Nov 2007 06:00:00 GMT
Now that the dust has settled on the recent tumult in the C-suites of Merrill Lynch and Citigroup (BusinessWeek.com, 11/27/07), one thing is clear: Boards need to have a credible, specific, and actionable chief executive officer succession plan in place at all times.

The lack of such a plan--which appears to have been the case at two of the world's highest-profile financial services firms--destroys credibility in the capital markets and erodes shareholder value. It also stirs anxiety inside the companies involved, making it difficult for people to stay focused and maintain momentum. Boards that fail to have a decisive succession plan at all times, whether it's for an emergency or planned retirement, run the serious risk of being judged negligent in the court of public opinion.

The problems at Merrill Lynch (MER), which had to scramble to find a successor to Stanley O'Neal, and at Citi (C), which is still searching for a new chief executive, make the point. But you can easily find other examples. Kmart (SHLD) and Apple (AAPL) (before Steve Jobs returned) each had four consecutive CEOs who failed. Harder, but not impossible, to find are examples of boards being prepared. (When health tragedies struck two consecutive CEOs of McDonald's (MCD) in 2004, the board's robust succession plan came through.)

Just a Minute With Dave Vetta President & CEO, First Business Bank - Milwaukee

Fri, 9 Nov 2007 06:00:00 GMT
Company address: 18500 W. Corporate Drive, Brookfield, WI 53045

Company Web site: www.firstbusiness.com

Industry: Banking

Number of employees: 20

Education: Certified Financial Planner; master's degree in business administration from the University of Wisconsin-Whitewater and a bachelor of science degree from Carroll College; additional advanced studies at Northwestern University and University of Virginia, Darden School of Business.

Family: "I am most proud of my family: my wife, Katy, and our three terrific daughters."

What was the smartest thing your company did in the past year?

"Investing in our Milwaukee team. We've been able to complement our core team and add five very experienced people in the last eight months."

What's new at your company?

"We have five new associates to complement our terrific team of people, bringing additional commercial real estate, manufacturing, investment management, and private banking expertise."

Do you plan to hire any additional staff or make any significant capital investments in your company in the next year?

"We are planning to continue to invest in our team with as many as four additional people next year. We intend to continue to grow at a rapid pace, while ensuring its prudent and sustainable growth. We seek growth and won't compromise our service model to our current clients."

What will be your company's main challenges in the next year?

"We want to continue to build on our seven-year legacy in metro Milwaukee. Our biggest opportunity is telling our story - over 90 percent of our clients tell us they are satisfied. So, our story for current and prospective clients is, `Try us and you'll enjoy our unique service model.'"

What's the hottest trend in your industry?

"An intense focus on small-business owners. We have always focused on the business owner. The business owner has needs related to the business finances and also to their own finances - they are closely linked. Both need to be considered when proposing solutions. Many banks say they are focused on the business owner, but that's been our company's distinction since inception 17 years ago. Among our clients, we're seeing more discussion about leadership and succession planning. We've added capabilities to help them address this."

Do you have a business mantra?

"Integrity in all you do. I strive - and I ask all our people - for an alignment of their personal and professional goals and passion. We need to strive for an alignment of the interests and values of our clients, shareholders and employees."

From a business standpoint, who do you look up to?

"Stephen Covey, who wrote `The Seven Habits of Highly Effective People." It has stood the test of time. Personally I look up to a former boss of mine who I had for 20 years at JP Morgan. He remains a mentor and a friend. I have learned a great deal from him."

What was the best advice you ever received?

"My parents impressed upon me to respect people, work hard, strive for balance, be humble, and have fun."

What's the funniest thing that ever happened to you in your career?

"We used to celebrate a lot when we hit milestones in the company. So we had a lot of fun playing roles and performing in skits. I have played Michael Jordan; some of it was caught on film. Only through the magic of video will I ever dunk a basketball."

What do you like to do in your free time?

"Reading, traveling, biking, and being a terrible piano student."

Taking Care of Business

Mon, 23 Jul 2007 05:00:00 GMT
As the area's first business-focused financial institution to offer cashless banking, First Business Bank - Northeast may be the perfect resource for your business - or it may not be.

And that is as intended.

"We're not trying to lure everybody in," said Mickey Noone, president of First Business Bank - Northeast. "It wouldn't allow us to service everybody the way we think they should be serviced. We're not trying to do everything. We have demonstrated capability, with products and services that support that capability."

As an enterprise based in Madison with a second location in Milwaukee, First Business Bank entered Northeastern Wisconsin last fall with a specific business model in mind, one based on what it has done successfully at locations that operated since 1990 and 2000, respectively.

It's aim was to provide clients primarily in the manufacturing, wholesale, distribution, and commercial real estate industries with convenience and one-stop, high-end services, making their banking experience more efficient and better for the bottom line.

However, its approach in this region is slightly different. "Our banks are typically set up as unit banks, which means they're separately chartered and have a separate board of directors and decision-making authority," Noone said. "We were pursuing that path up here as well until we came upon the automation that was available. Once we recognized that there was a lower cost of operation up here, we engaged it."

First Business Bank - Northeast did so by setting up as an LPO, or loan production office. It has its own regional board of directors hailing from communities from Fond du Lac to Green Bay, handles financing and similar services, but does not accept deposits face-to-face.

"When you walk into a bank, what do you see? You see a teller line," Noone said. Not so at First Business Bank - Northeast, currently operating on Oregon Street in Oshkosh and scheduled in October to open its main location in the building under construction in Appleton at Highways 41 and BB.

Instead, clients handle their transactions electronically using password-protected online banking, remote deposit appliances, and, soon, branch automation equipment that handles petty cash needs much like an ATM.

"We took a step out of the process and gave that to the client to control fully, and that allowed us to drop our costs significantly," Noone said. "That's the endgame of the efficiency created. It gets passed along to the client."

Eliminating the transactional element from its purview also allows First Business Bank - Northeast to focus its efforts where its expertise lies. "I think that's probably the most powerful thing we bring to the table," Noone said. "We're no longer talking about why a teller made a mistake on their deposit. We're talking about big issues, and so the quality of those contacts went up substantially."

Small to medium-sized clients tend to benefit most from a relationship with First Business Bank - Northeast, according to Noone. "In our minds, it's $1 million of need, whether that's commercial lending, treasury management, trust, or a combination of the three. That's how we're pursuing clients - clients that have multiple needs that want a high level of service.

"The business model is a team approach. We represent trust, leasing, asset-based and traditional commercial lending, and treasury management," Noone said. "We can get all five of those people in front of you in 15 minutes, so it's very easy for us to bring all those things to the table."

Thus far, First Business Bank - Northeast has attracted 15 to 20 clients accounting for about $40 million in commitments. "It's been a pretty rapid growth cycle," Noone said.

Influential in that growth is the asset base from which First Business Bank - Northeast is able to operate. "One of the great advantages is that we get to leverage the whole organization," Noone said. "If I'm starting a unit bank, my lending limit is a percentage of my capital. As an LPO, I get to lend based on Madison's capital which is a much bigger gun to hunt with."

Nearly $800 million big, as a matter of fact. Noone said, "We can lend $12 million to $14 million per client, whereas I'd only be able to lend about $1 million per client (as a separate unit bank). It's much more efficient."

Certain types of operations are notably absent among First Business Bank - Northeast's clients, mostly because the cashless approach it utilizes will not work for them. "The high cash needs people - a grocery store, a retail shop - are not going to be good clients of ours," Noone said. "While we can produce cash, it's not going to be in quantities that they're going to find acceptable."

"Our model is focused on critical mass. We want fewer, larger clients so we can produce the service we think they deserve rather than trying to be everything to everybody."

Noone admitted one disadvantage to the cashless system First Business Bank - Northeast employs - one he quickly turned into a positive.

"One of the biggest concerns we've had is that most people, when they went out and made the bank deposit, went and grabbed coffee or grabbed lunch. So, they don't get to do that anymore," he said. "I think they're shocked at how easy banking can be and how much more time they have to focus on their business, which is really the key."

What Makes a Business Leader Tick

Tue, 19 Jun 2007 05:00:00 GMT
Anthony Smith is an old friend who has written a new book called The Taboos of Leadership. I love the title. In this interview, Tony shares some of his thinking on leadership--and some insights from the executives he has met over the years. Here are edited excerpts of our conversation:

You have years of consulting experience. What is an observation about chief executive officers that might surprise our readers?

I am often astonished at how deeply CEOs really love their work.

Back to Work - On Their Own Terms

Sat, 12 May 2007 05:00:00 GMT
BROOKFIELD - Michael Gingras retired as vice president of M&I Bank in Brookfield at the end of January with the intent of taking 60 days to figure out what he wanted to do with the rest of his life.

But within less than two weeks, three different kinds of banks called him, asking him to come back on a part-time basis as an adviser or mentor to the company.

"It got me thinking maybe I should be reconsidering this whole process," Gingras said. "There is a crying need for people that have experience, that are seasoned veterans, at whatever level it would be, to help out the junior generation."

Gingras is part of growing number of workers who are being asked to come back in flexible, part-time advisory roles after retirement.

Scott Nissen, president of Waukesha staffing firm Nissen Staffing Continuum Inc., said the combination of a talent shortage with rising health care costs is forcing employers to search for senior workers who can have a tremendous impact during a shortened work week.

"The demographics are changing," said Nissen, a past president of the Wisconsin Association of Staffing Services. "More workers are leaving than coming in and employers are looking to create alternative staffing arrangements or plans."

Gingras decided to take a job as vice president of business development for First Business Bank of Brookfield, a Madison-based bank that primarily serves mid-sized businesses.

He was hired by First Business Bank of Brookfield President and CEO David Vetta, who also came back from retirement to run the company nine months ago.

"Many people in (Gingras') situation have worked hard and they don't want to just stop working," Vetta said. "I think people will be working into their 80s and not because they have to. But because they want to and I think that makes all the difference in the world."

Advisory Role

Nissen said hiring retired talent on a part-time basis is a concept that started about four years ago and really gained traction during the last two years.

He said acquiring and finding talent is difficult right now and hiring workers on a part-time basis saves employers the cost of benefits.

From a worker's standpoint, he said, many older workers need the supplemental income and with the overall increase in life expectancy, people are interested in staying active in the business world.

"Senior workers are willing to work part time for the extra income," Nissen said. "But for others, working fills a missing piece for them."

Michael Gingras, vice president of First Business Bank, discusses his business in a conference room at the Brookfield branch Thursday. Gingras is among a growing number of retired workers drawn back to work to serve in advisory roles.

Vetta said he was interested in Gingras because he knew his interests and curiosities align with the bank's overall philosophy.

With $800 million in assets, First Business Bank of Wisconsin has the largest market share of business clientele in Madison and is looking to grow its share in the Milwaukee area.

David Vetta, president and CEO of First Business Bank of Brookfield, said he hired Gingras because he knew Gingras' interests were aligned with the bank's philosophy. Vetta returned to work from retirement to run the bank nine months ago, he said.

"At this stage he very much is trying to and has a history of acting as an adviser and consultant to businesses that are new to that growth as we grow ourselves."

Gingras said he spends the majority of his day "out on the street trying to develop relationships with existing" companies but also wants to work with some of the bank's junior officers. "We do have some officers on the junior side that I am trying to get some of my thoughts through (to)," Gingras said. "More than anything else, (I show them) the way that didn't work for me so they don't make the same mistakes I did."

The Next 10 Years

Gingras said he works about 30 hours a week and is able to attend some meetings via telephone. For now, he enjoys focusing solely on the business client and business owner almost exclusively, while at the same time having the flexibility to explore other interests, he said.

"Retirement is overrated," Gingras said. "It is fun doing this three days a week. The bank makes it very flexible for people like me."

Nissen said the trend of hiring retired workers stretches across all industries and will likely continue.

Vetta said the bank has created a situation where Gingras should be able to work there happily for the next 10 years.

"People have choices," Vetta said. "And he found a choice that I think is a balance for him for quite some time to come that utilizes his skill sets, that piques his interest and curiosity and (allows him) to spend a good amount of time with his wife and his family."

First Business Bank Fills Gap with Mezzanine Financing

Fri, 11 May 2007 05:00:00 GMT
First Business Bank-Milwaukee is partnering with Chicago-based Aldine Capital Fund L.P. to offer mezzanine financing to clients in southeastern Wisconsin.

First Business Bank-Milwaukee claims to be the only Wisconsin-based bank offering mezzanine financing. It is an independent bank owned by First Business Financial Services Inc., which also owns First Business Bank-Madison and several other financial firms. The bank is based in Brookfield. It has about $118 million in assets and 15 employees.

Aldine Capital Fund typically invests in small to middle-market companies with between $10 and $150 million in revenues. The fund typically invests between $2 million and $8 million.

Mezzanine financing is a tool that can fill a financing gap between an investor's equity and a traditional bank loan. The tool is often used to help fund growth, a recapitalization, acquisition by strategic or private equity buyer or other ownership change.

The new service reflects First Business Bank's goal of serving the owners of privately held companies.

"We want to go deeper with our clients and client base," said David Vetta, president and chief executive officer of First Business Bank-Milwaukee. "We looked at the life cycles of our clients. We want to help them buy businesses or build them. And it made sense to partner with someone who has already built this solution."

Adding mezzanine financing through the partnership with Aldine gives First Business Bank-Milwaukee one more tool to differentiate the bank from its competitors, Vetta said.

"We want to be a consultant and advisor to our clients," he said. "We need to understand their objectives, then act. We can distinguish ourselves with products, services, and service levels. This is another added offering that we can bring to the table."

Mike Revord, managing partner with Aldine Capital Fund, said partnering with a business-focused bank in southeastern Wisconsin will help the fund gain access to businesses here.

"We're in the market for lower middle-market businesses," Revord said. "And we're in the same market that First Business Bank serves. Their laser-like focus of serving privately held middle-market businesses - Aldine targets those for investment."

One scenario where the bank might steer a client toward mezzanine financing is when the client is considering selling a minority share of the business to pull out some equity, said Frank Cheswick, partner at Aldine Capital.

"Mezzanine is a good use for that, when they want to take some of the chips off of the table," he said. "We're not a control investor - most private equity firms want to have a controlling block. We're a logical first stop when (business owners) are looking to sell a minority share." Offering its clients access to mezzanine financing is part of First Business Bank-Milwaukee's goal of being a one-stop shop for business owners.

"The name wouldn't necessarily infer the case that we care for their personal needs," Vetta said. "But we are a boutique for the business and business owner, and we need to be sure we address both ends of that."

Funding to Grow

Thu, 1 Feb 2007 06:00:00 GMT
Mezzanine funding now available in Wisconsin

Success requires growth. Growth requires funding. And funding requires resources.

For existing business owners looking to expand or potential business owners seeking an acquisition, it is a recipe for endless frustration. Well-heeled businesses that are for sale often carry an asking price in excess of the market value of the tangible assets. This premium, often called "blue sky" or the "air ball" in the purchase price, can be difficult for traditional bank financing to fully fund or finance. The seller asks for that premium because the business has a history of profitability as well as a unique product or name recognition in their industry.

Businesses typically sell for some multiple of profitability, plus non-cash expenses (i.e. depreciation) and interest expense that all together is commonly referred to as "cash flow;" it is also known as Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA). Whether you are attempting to purchase a competitor's company or navigate a transfer of ownership, if the current owner can show a history of solid cash flow, it is very likely that he or she can expect to realize a premium in the price of the business over and above the value of its assets.

For middle-market companies, making such a purchase - at such a premium price - can be difficult. Few middle-market businesses have the resources for major growth through acquisition, expansion, or product-line development without the support of a bank, and banks generally limit the available dollars borrowed based upon the value of the tangible assets available as collateral. However, if the purchasing business is a market leader with a solid management team and a strong track record, finding flexible growth funding may be easier than one thinks.

Mezzanine financing - a type of debt aptly named after the balcony between the first and second floors - helps middle-market businesses meet their full financial needs by filling the gap between equity capital and collateral-based debt. It's a crucial funding resource for thriving companies looking to expand; companies that until recently had very few options for meeting million-dollar investments.

What sounds counterintuitive is actually true: In Wisconsin, like many states, securing $25 million is often easier for business owners than obtaining $5 million. That is because smaller, community-based financial institutions rarely offer mezzanine financing, while national providers typically grant such unsecured debt to larger companies in larger denominations. But now some lenders are breaking with tradition.

Dane County's First Business Bank has partnered with Aldine Capital to provide mezzanine financing for businesses seeking $2 to $8 million, a first among Wisconsin-based banks. The collaboration places them at the head of a growing number of progressive financial institutions that recognize mezzanine financing's flexibility is uniquely suited to help medium-sized enterprises become big ones.

Mezzanine funding focuses on proven track records. Lenders look at a prospective company's long-term performance, market position, earning history, and cash-flow consistency. Does the company fill a certain market niche? Is it a part of an industry on the upswing? What are the company's long-term and short-term goals? These common considerations differentiate mezzanine financing from angel investments and venture capital, which are often based upon an idea, concept, or business strategy yet to be fully tested or proven.

For that reason, businesses that combine healthy balance sheets with quality management have the advantage in this funding arena, especially when their capital needs are clearly defined. Management buy-outs, acquisitions, expansions, and ownership changes are all customary reasons for a mezzanine capital search.

It is also an attractive alternative for entrepreneurs worried about losing ownership or autonomy. Because smaller amounts of equity are exchanged in mezzanine transactions than in venture capitalization, owners stay securely in charge.

While mezzanine financing is an invaluable capital resource for acquisitions, expansions, and product development, middle-market companies may find that their capital comes with an even greater advantage: the investor.

Most mezzanine financers are sophisticated, strategic investors, people, and institutions that can add valuable insight to your company. Plus, mezzanine financers aren't looking for a fast buck or a quick killing. They're long-haul investors who want to maximize a company's potential over years without taking control. Such an attitude can make them appreciative when things go well, yet flexible when the best laid business plans go awry.

To be successful, entrepreneurs interested in mezzanine funding should seek banks that demonstrate a strong commitment to small businesses in their community. When growing your business depends on gaining a financial partner, working with a bank that supports your business, understands your market, and believes in your potential can be the most important thing of all.

Mark Meloy is president of First Business Bank - Madison. He has over 20 years of banking experience, including specialized work in commercial lending and mergers and acquisitions.

Taking Care of Business: Corey Chambas

Tue, 1 Aug 2006 05:00:00 GMT
As CEO, Chambas has led First Business Bank on a path of record growth

Corey Chambas has worked in the commercial banking industry for 22 years, specializing in cash management and commercial lending. A graduate of the University of Wisconsin, he has also completed several advanced commercial lending programs including those of Darden (University of Virginia) and Kellogg (Northwestern University). In addition to his role as CEO at First Business Bank, he is also a director of First Business Capital Corp., a director of First Business Leasing, LLC, a board member of Mortenson, Matzelle and Meldrum, Inc., Business Advisory Board member of Bellbrook Labs, LLC, President of the board of the Foundation for Dane County Transition Schools, member of the Strategic Campaign Issues Committee for the United Way of Dane County, and a member of Madison Breakfast Rotary. In 2003, Chambas was presented with North*Western Financial Review's `Rising Star' award in recognition for his outstanding industry accomplishments and community involvement.

BW: Tell us a little bit about growing up in Milwaukee.

We lived in the central part of the city until fourth grade when we moved to Mequon. It's not the Mequon we know today - back then I could walk out our door and go pheasant hunting!

I had a great childhood. It's common to hear people talk about the traumatic things that happened to them growing up, and that almost makes me feel guilty. I had lots of fun. I didn't get into too much trouble. I played baseball, basketball, and football in high school, which was a blast.

My father was a factory worker for Evinrude. It was just assumed that I would go to college. He never liked his job. He did it to earn a living and support his family and he wanted me to have more than that.

BW: How did you manage your money when you were growing up?

I was a saver by nature. I worked all through high school. My first job was stocking shelves at a pharmacy. I knew I was going to be paying my way through college so I saved as much as I could.

BW: Did you have a strong desire to enter the world of banking?

Not at all! I started as a chemistry major at UW-Madison in 1980 because I'd been on an accelerated science track in high school. But I really didn't like my 7:45 a.m. chemistry lab or getting up that early in the morning. So I changed my major to wildlife ecology. Then I learned that to get a decent job in that field I would need at least a master's degree. That was disappointing news because my personal finances, including my two scholarships, would only get me through four years of school. One day I was talking about my situation with some graduate chemistry students. They started asking me what I was good at and what I wasn't good at and eventually determined I was "well balanced" enough to be a business major! So I marched up Bascom Hill and changed from wildlife ecology to business. Then I discovered there were lots of business majors to choose from - I liked the sound of finance, investing, and banking, so that became my major. I graduated in 1984 with a bachelor's degree in business administration.

I really knew very little about commercial lending when I graduated. During my interviews with banks they'd ask me if I wanted to be in commercial lending, and of course I said "sure!" I learned more about commercial lending through the interview process than I ever did in the classroom. I was invited to interview with First Chicago Bank and suddenly realized that if I took that job it would be the Bears on TV every Sunday, which made me realize I had to find a job in Wisconsin. M&I in Milwaukee hired me - by the time I graduated in 1984 my wife Kris and I had a newborn son and I really needed a job.

BW: How did you meet Kris?

In a nursing home! During the summers I was a maintenance man in a nursing home in Mequon. She was a nurse there. It was a reverse Cinderella story - the maintenance guy falling for the nurse. She was impressed by my floor waxing and buffing skills, I guess!

BW: You worked with M&A for nine years before making the switch to First Business Bank - how did that happen?

After working in commercial lending for six years in Milwaukee, I was transferred to Madison. It took me six years to establish my credibility and more high enough up the ladder to get the transfer. When I came to Madison in 1990, First Business Bank was just getting started. I was very interested because my experience was in commercial banking. I thought the idea of a locally managed bank dedicated to commercial banking made a lot of sense.

A few years later a friend of mine invited me to go fishing on Lake Wisconsin. The lilacs were blooming, which meant the crappies were biting. We ran into another friend of his - Jerry Smith (the founder of First Business Bank) - who wasn't supposed to be there, be he noticed the lilacs were blooming, too! Jerry invited us to fish off his dock. He was in jeans and a Wisconsin sweatshirt. I thought, "Wow, this guy's a bank president and he's wearing jeans!" My current employer was very formal - that's all I had known in my banking career. In fact, the bank I worked at had a policy that when you walked through the lobby you had to wear your suit coat.

Anyway, I got to know Jerry. Soon after that, there were six banks competing for the business of this top company in town. It came down to Jerry and me, and I won the business. I ran into Jerry at a conference a little later and he leaned over to be and said jokingly, "You can't go fishing at my place anymore."

Another opportunity arose in 1993 where again it came down to myself and First Business Bank, and I won the business. Then Jerry said, "I think we need to talk." He wanted to hire me. It was a great opportunity for me to make a bigger impact with a smaller bank. So I took the job.

BW: How is First Business doing?

Very well. What started out as a bank has now expanded. Our holding company, First Business Financial Services, now includes two banks, First Business Bank - Madison and First Business Bank - Milwaukee (individually chartered banks, not branches); a trust and investment company, First Business Trust & Investments; an equipment leasing company, First Business Leasing, LLC; and an asset-based lending company, First Business Capital Corp. This breadth of services is very unique for a company our size.

Our Madison bank has significant market share, especially among small and medium-size firms. Over 16 years we have grown our assets to $550 million. Only a few of our 1300 business clients are startups, so that means more than 1200 have switched to First Business Bank from somewhere else.

Because we only do business banking, we are very focused. We don't have to worry about kid's clubs and drive-up tellers, for example. And a traditional bank our size would have 30,000 or more accounts. Because of this, we can provide a higher level of attention and personal service. I spend all my time with business clients. Since we are headquartered in Madison, all the decision-makers are here. It is very easy to assemble a loan committee at the drop of a hat - we can turn around decisions very quickly.

Our model is also different. As I mentioned, we really pay up on client deposits, so combining that with very competitive loan rates, we have a skinny net interest margin. Most banks are at about 4% and we're at about 3%. This works for us, however, our operating expenses are about 1% less than a traditional bank, so we get to the same bottom line, but our clients benefit from the better loan, and especially, deposit rates.

We also worked with the UW School of Business to put together the first annual Dane County Economic Survey. Our clients were telling us there was no local economic data they could rely on for budgeting and planning. Our presentation of the report was very well received with more than 100 business leaders attending. And we've continued to offer this service to the business community every year since. First Business also presents eight seminars a year for our clients that deal with key business issues.

Finally, the skills, quality, and integrity of our staff is unparalleled. Our culture is very team-oriented. People enjoy working here - it's almost like a club. We are very particular about who we hire. We want to continue to feel small and be unique, even as we grow. We have a healthy fear of losing our culture as our success drives our growth.

BW: Why did First Business go public?

The trigger was going over 500 shareholders - when that happens you must register as a public company. There are ways to reduce the number of shareholders, such as buying back shares, but we didn't want to do that. Many of our shareholders are clients and employees--we're friends and they wouldn't want to be bought out, and we wouldn't want to buy them out.

A company also has to be registered with the SEC to be listed on the stock exchange. We wanted to be listed so we could have access to equity capital, which will help with our future growth plans. Before, when we needed equity capital, we went out and sold shares. We did it ourselves, but it's not one of our core competencies. Both Jerry and I are sales-oriented and client-oriented. We are good at bringing in new clients and retaining our existing clients, which results in growth.

BW: Right now you are president and COO of First Business Financial Services and CEO of First Business Bank. Jerry Smith will be stepping down as CEO of First Business Financial Services toward the end of the year and you will be taking over that role as well. Sounds like you're going to be busy.

I currently have our operating entity presidents reporting to me, as well as heads of human resources, finance, and marketing. As CEO, I will need to have our corporate secretary and the internal audit function reporting to me, as well as increased corporate strategy execution responsibilities.

BW: What is your typical day like?

I'm up at 5:45, at the office by 7:00 a.m, and leave work at 6:00 in the evening. Usually I will bring some reading home with me. I also work out most days--somehow I manage to get it in. Working out is a great stress reliever. In fact, I get a lot of good ideas when I run, bike, or swim, so it is a very productive time, as well as therapeutic.

BW: What are your some of your immediate challenges?

The biggest challenge is keeping up with all the opportunities--this is an exciting time. I will also have more responsibility toward the end of the year when I move into the CEO position.

BW: What is your best piece of business advice?

Try to help make your boss successful and don't worry about yourself. And if you are a supervisor or manager, make sure the people who work for you are as successful as they can be. This means being team-oriented.

Bio

Who: Corey Chambas

Education: UW-Madison, Business

Family: Wife Kris, son Matt, daughter Ally

Favorite local restaurant: Restaurant Muramoto

Favorite movie: Snatch

Hobbies/activities: Musky fishing, triathlon training

Most recent book: Angels and Demons by Dan Brown

Most important career experience: Going fishing for crappies

Best-kept secret in Madison: UW Arboretum

Favorite Wisconsin getaway: North Woods

Most admired person: My mom

Scanners will save time? Check

Thu, 16 Feb 2006 06:00:00 GMT
Local banks eager to unveil new technology

As computer technology has steadily eroded the effort needed for office clerical tasks, Joe Gastel figured the old-fashioned paper-checking system was taking up too much time.

As controller for the Madison insurance agency Mortenson, Matzelle and Meldrum, Gastel estimates employees spent from three to five hours a week doing nothing more than sending checks to First Business Bank, filing them, and preparing them for couriers.

But not anymore.

The agency is one of the bank's three early clients using its new remote deposit system. The system scans images of paper checks and delivers them via the Internet to the bank, without the time or travel.

"It's freed up our people to focus on better things than clerical work," Gastel said. "We can focus on our operation and other ways we can save money in our processes."

Banks throughout the Madison area are scurrying to get the technology up and running, and some, such as First Business and Rockford, Ill.-based Amcore Bank, are already accepting the images from business clients.

Many others are close to unveiling the product, including the State Bank of Cross Plains, which said Wednesday its product will be available within the month.

The "Check 21" law that went into effect in 2004 paved the way by making electronic duplicates of checks legal documents. Sensing the huge business upside for such a tool, banks have aggressively pursued development of the technology.

The efficiency of eliminating paper copies is clear throughout the industry, but for smaller banks like First Business, the benefits are particularly attractive: It can dramatically expand the base of potential deposit customers, said president Michael Losenegger.

"Clearly the clients benefit, but the bank benefits because we now can have deposit accounts where we might not have had them before," Losenegger said Monday.

First Business will demonstrate the technology - which consists of a small scanner connected to a computer - today at 2:30 and 4 p.m. at its offices in University Research Park at 401 Charmany Drive.

Local banks with only a single location see the technology as a way to compete better with much larger, geographically extended competitors.

"We keep pushing the envelope of what we consider our markets," said Brad Schroeder, first vice president of the DMB Community Bank in DeForest, who said borrowers will one day benefit from his bank being able to accept deposits from farther away.

Betty Noon, vice president of the State Bank of Cross Plains, said there is an urgency in offering remote deposits, as some of her bank's customers have been wooed by larger banks that have the technology.

Consumer advocates have raised concerns about remote deposits, arguing the technology will eliminate the "float" that shoestring budgeters rely on. That is, writing a bad check, waiting several days for it to be processed, and depositing money in the meantime to cover it.

But local bankers say that day is still several years away. Only when the technology becomes universal will check be processed instantaneously, said Todd Conkey, a vice president for Amcore, which unveiled the technology in January.

In the meantime, customers are beginning to understand that the float - never a financially responsible practice in the first place - will soon become a thing of the past, experts say.

Paying Employees Cash for New Hires

Thu, 1 Sep 2005 05:00:00 GMT
Ever wonder how you can recruit valuable new employees without spending a large portion of your marketing dollars?

If you haven't turned to your own employees for referrals, you may be missing the boat. Here's a look at three area companies that find employee referral programs to be a valuable recruitment tool.

Building the Program

Jodi Chandler, vice president of HR with First Business Financial Services, Inc., says the company's employee referral program has been in existence for about 10 years. "It started out at a $100 referral fee and now is at $250," says says. Ninety days after an employee's referral is hired, the employee who made the referral receives $250. The offer is good across the entire company, so it doesn't matter what subsidiary the new employee is hired for," Chandler explains.

At Conney Safety Products, LLC, Marcy Mahone, HR manager, notes all employees are eligible for the employee referral program, which as been part of the company for over five years. "After a person is hired, the referring employee receives $350 once that person completes their 90th day at Conney," she says.

Mahone notes referred employees go through the same process as other candidates. Interviews do not guarantee that the referred candidate will be hired. "They still must meet the qualifications and expectations that we have in place," she says.

Between June 2004 and June 2005 Conney hired six people through employee referrals. Five are still employed by the company.

At National Guardian Life Insurance Co., Kathy A. Johnson, director of HR, indicates the company's talent scout program awards cash bonuses if full-time candidates are referred by an active employee. "This bonus is on the active payroll when payment is due," Johnson says.

For nonexempt positions, the bonus pays $150 immediately upon hiring. An additional $150 referral bonus is paid when the employee completes six months of satisfactory service. On exempt (salaried) positions, a bonus of $250 is paid immediately upon hiring, with an additional $250 after the employee completes six months of satisfactory employment.

Any downside to paying referring employees? "No downside," says Mahone. "But we did have to find a way to identify referrals before someone is hired. The application works well for this - otherwise we don't recognize unless they're identified up front."

Recruitment Results

At First Business Financial Services, employees like the fact that they are offered a reward for recruiting others, but there's more to it than that. "People like working here," Chandler says. "They feel good about recruiting people to an environment that they enjoy."

The bank has a rigorous hiring practice. Still, employee recruitment results are strong. In 2003, 45% of new hires were referred by employees. Last year, 40% of new hires came from employees. "This year, at the end of July, we were a t 35%," Chandler says.

Promotion Helps

Conney pays its employees for their help in a very visual way. "In order to make a big impact, about two years ago we began paying the referral in cash. We actually walk up to employees in front of their coworkers and give them $350 in cash," says Mahone. "We think that makes a bigger impact than just adding money to their paycheck."

Keeping Your Business Credit Strong

Sun, 1 May 2005 05:00:00 GMT
One of the most challenging parts of running a business (especially in an uncertain economy) is maintaining the sometimes delicate balance between cash flow and debt - making enough to expand the business and also pay down (or pay off) company debt. Having good business credit is critical for getting the money you need to weather the storms that always seem to be on the horizon.

On the surface it seems simple enough. "For businesses to maintain their ability to borrow, they must keep payments current, not overextend, and keep up a good cash flow," says Eric Johnson, vice president with Johnson Bank. "For maintaining a good balance sheet, it's important to be well capitalized and not overleveraged."

That means having sound financial management processes in place. "It's imperative that the business owner understands how to use financial statements and projections to help manage the firm's credit needs," says Neil Lerner, director of UW's Small Business Development Center. "Monthly or quarterly cash flow history and projects are useful for understanding which months of the year additional cash is needed."

Credit problems often start when companies don't take their business plans seriously enough. "A surprising number of business people don't fully understand their business plan, analyze the market, or set goals," says Connie Kilmark, a financial counselor and owner of Kilmark and Associated, LLC. "Or they have someone else write the plan, and then they take it to the lender, only to disconnect with the plan once they've received their loan. The lender views the business plan as a serious committment - if the goals aren't being met, that undercuts the owner's credibility tremendously."

Kilmark also points out that some owners who work 24/7 feel that their hard work alone excuses them from making prompt payments. "They almost feel that vendors and creditors are being unfair if they expect payment on time," says Kilmark. "One of the worst things a business can do is share the risk of its ups and downs with its vendors and creditors, because that portrays the business as high risk."

Communicate with Your Lender

"Submitting financial information on a timely basis is very important," says Michael Losenegger, president of First Business Bank. "If the banker is just receiving December statements in May, that's not a good sign. Bankers don't like negative surprises."

Johnson advises having one or two key contact people at the bank who know you well, and understand your company's needs. "If it's just numbers, it's not a relationship and that's all you'll have if hard times strike," says Johnson. "But if you have a real relationship with a person, and your business has a bad month, or cash flow problems arise because receivables spiked, it can be worked out. You just need open lines of communication."

Banks know that it's much easier to retain current clients than it is to find new ones. "If lenders still believe the management team and business plan are sound," says Losenegger, "they'll work with the client to come up with a solution. They might revisit the business model to see if something has changed in the market. The solution might be granting additional credit for more financing. If it's a temporary cash flow problem, they might stretch the amortization schedule from five to seven or ten years. Or for a certain length of time the owner may only have to pay interest, instead of interest and principal."

Another Pitfall

Early-stage businesses sometimes fall into the trap of using credit card debt in lieu of bank credit. Credit cards should be used as a convenience for business expenses that can be paid off every month. "The problem with using credit cards for longer-term expenses is that the interest rates are expensive and it's what I call 'undisciplined money,'" says Lerner. "Typically the user has no plan or timeline for paying off this credit card debt and interest charges can be 18% or higher, which is more than twice that for bank financing."

Communication is critical in every credit/debit relationship. "If there is a large downturn, or a client leaves, communicate that immediately to your lender," says Kilmark. "Deliver any bad news as early as possible - that timing could be important to your lender, too. Telling your banker up front shows a concern on your part. Don't delay until your lender has to deal with your problem in crisis mode."

E-Banking Saves Time and Money

Tue, 1 Feb 2005 06:00:00 GMT
E-banking is being used by more businesses as banks continue to provide a greater range of e-technologies, and market them more aggressively to the business community.

Kenneth D. Thompson president and CEO of Capitol Bank, says roughly 20 to 25 percent of his customers use online banking. "Almost all new customers ask about online banking right away," he says.

"In the 2004 survey by the Independent Community Bankers of American and inFinet Resources, 77% of responding banks offered electronic bill payment, 62% provided electronic updating of account information, and 51% offered check imaging," says Karen Virnoche, ibank manager for Oak Bank. Other services banks provide electronically include applying for loans and credit cards, opening deposit accounts, online brokerage, and aggregating financial information from other Internet sites.

"E-banking allows for payroll processing and transferring funds within the bank, as well as externally to and from other financial institutions," says Theresa Wiese, senior vice president of First Business Financial Services Inc. "This service is also used for consolidating funds, accounts payable processing, loan payments and advances, accounts reconciliation, electronic processing of tax payments, and positive pay."

Positive pay can also be used with ACH payments (automated clearing house), which are commonly used for direct deposit of payroll. "Setting up an ACH transaction to recur is efficient and ensures the timeliness of payment or collection," says Laura J. Peterson, business banking officer at Monona State Bank.

Two of the most popular services are payroll cards and check imaging. Payroll cards allow employees without bank accounts to be paid via direct deposit, which improves personal security for those without bank accounts because they don't have to carry large amounts of cash.

Check imaging allows canceled check images to be stored in a fraction of the space that an actual check would occupy. "These images can be accessed via personal computer and the Internet," says Sandy Bruhn, vice president of cash management for Johnson Bank. "In the future, images will be able to be taken at the business location and sent as a file to the bank, which will eliminate location as a factor in choosing a business bank."

Making Banking Easy

The convenience of performing various banking transactions online saves energy, money, and physical space. "For example," says Peterson, "the QuickBooks download saves the user time reconciling their account and compiling financial reports. The bill payment feature enables the user to pay bills and invoices electronically, eliminating the need to address envelopes and purchase stamps."

E-banking does not require special software either. Businesses can bank online from personal computers by logging on to a secure website with a username and password. Businesses can also arrange the password capability for multiple users.

Such customization is key when choosing an e-banker. "A good e-banking service can be customized for the specific needs of your business," says Peterson. "You can use an e-banking package that offers only the features that best meet the cash management needs of your business. A good business banker should offer resources that will help you become comfortable with your e-banking service and features, as well as provide an e-banking customer support line for your convenience."

Security

Security challenges are ever-present on the Internet. Virnoche urges businesses to be aware of phishing, "an online form of identity theft that uses spoofed e-mailed designed to lure recipients to fraudulent sites that attempt to trick them into divulging personal financial data."

Virnoche says the best defense is to "react with caution" to suspicious e-mail offers. "Bypass links in any e-mail, no matter how official it looks," she says. "Instead, open the banking website directly, as you would do if unprompted by an e-mail."

In contrast, the security benefits of e-banking also prevent internal employee fraud. "Positive pay allows matching of check numbers and amounts to prevent fraudulent items and altered amounts," says Bruhn. "And new imaging technology will make it possible to also match the payee, giving added protection."

Taking the Mystery out of Commercial Loan Underwriting

Mon, 1 Nov 2004 06:00:00 GMT
If you're looking for a new commercial loan, first recognize that commercial lending is different than consumer lending. In commercial lending, there are no hard rules or ratios that make a loan either acceptable or unacceptable.

Commercial lending is a bit more art than science. However, the underwriting process is not the mystery it may seem to be. It is simply a process of information gathering (or due diligence), financial analysis, and the making of informed judgments.

Repayment Sources

Repayment sources are usually from cash flow, collateral, and guarantors. The bank starts its analysis process by getting to know and understand the prospective borrower by meeting with company management. General information is gathered about ownership, management, products and markets, financial, and promotional information.

Collected Information

Lenders typically collect year-end balance sheets and income statements for the past three years, the most recent interim financials, corresponding interim statements from the prior year, the annual budget, business tax returns (if year-end statements are unaudited), accounts receivable aging, and possibly accounts payable aging.

If your business is privately held, the owner(s) usually guarantee the debt, so current personal financial statements and personal tax returns are also collected. At least one meeting is held at the business location so a tour of the facilities can be conducted.

Written Analysis

If the lender determines that the above information is favorable, a written analysis is done by the loan officer using the information gathered. It will be reviewed by the loan committee or used to document the lender's individual loan approval.

The analysis includes a history of the business, management, products and markets, loan purpose, financial analysis of the business, collateral analysis, and financial analysis of any guarantors. The goal is to reasonably assess the likelihood of the company's continuing success.

Differentiation Factor

Lenders need to understand how the company positions itself in the marketplace and differentiates itself from its competitors. Is the company positioned as a low cost provider or do they provide higher quality, better services, or faster turnaround? Who are the major competitors? Are there barriers for new competitors? Is there a major concentration risk? How are sales generated? Are revenues cyclical with the general economy or are they seasonal?

Purpose of Loan

The purpose of the loan determines the appropriate credit structure. For example, working capital needs caused by growth should be funded by a line of credit with interest-only payments required, while an amortized term loan better matches the life of longer-term assets such as equipment or real estate.

Financial Statements

Banks look for trends and significant changes while using financial ratios for analysis. Major items examined include liquidity, the ability to meet current obligations, using the current ratio (current assets divided by current liabilities) or working capital (current assets minus current liabilities); and leverage, the company's net worth position relative to its liabilities, using a debt-to-worth ratio (total liabilities divided by net worth). An acceptable current ratio or debt-to-worth ration depends on the industry and the life cycle of the company.

Income Statement

Typically, lenders analyze items beyond just sales and net-income growth or compression. For example, gross profit margins and operating expense levels are compared to industry averages and examined for trends. Changes need to be explained relative to business strategies.

Sources of Repayment

Cash flow is the primary source of debt repayment and vitally important in most loan situations. Cash flow is different from earnings, in that noncash items such as depreciation from the income statement, balance sheet changes such as growing receivables and inventory levels, and other debt payments need to be factored in.

The analysis calculates cash flow using both the income statement results and balance sheet changes. The lender analyzes historical, current, and projected ability to service the debt, as well as capital expenditure requirements, which need to be financed either through borrowing or using available cash.

Collateral analysis is a basic part of any loan analysis in that it provides a secondary source of repayment should the expected future cash flow not come to fruition. The bank applies a discount factor to the value of assets that serve as collateral for the loan to determine a probable liquidation value.

The "science" is the process outlined above - the "art"of the deal is the approval or denial of the loan. Rarely is it a clear-cut situation.

Want to Find Out What Employees Really Think? Third- Party Surveys Are the Way to Go

Thu, 1 Jul 2004 05:00:00 GMT
Want to know what "hot buttons" employees are talking about over lunch? Or why you're not attracting the caliber of employees you want and expect? Then consider conducting employee surveys to better grow your operation.

First Business Bank has been conducting employee surveys since the bank opened 14 years ago. The survey costs about $3,500, which includes all summary reports with comparative data.

"In the beginning, the employee survey was conducted every other year," reports Jodi Chandler, vice president of HR of First Business Financial Services. "However, as the number of employees and entities within the First Business family have grown, we have conducted the survey on an annual basis for the past three years."

Chandler says the participation rate is extremely high. "The expectation to participate was first communicated in 1990, when the bank opened," Chandler continues. "Our culture centers around open and honest communication and this survey is one of the tools that helps support that."

Survey responses are collected anonymously and confidentially. Employees now can complete the survey on-line. "We block off 30 minutes of company time and ask everyone to complete the survey at the same time," notes Chandler. "I believe we get such high participation because of the pre-scheduled time to complete the survey."

In keeping with a culture of open communication, the results are shared with employees. "We present the results to all of our employees at an employee meeting." Says Chandler. "The results show how we compare to our own prior years' results as well as how we compare to our peer group."

Additionally, management discusses the survey results during the annual fall planning session. "Goals and strategies are put into place for various managers to correct any areas where we feel we are deficient, as well as maintain the high level of satisfaction we have in many areas," Chandler says.

Value and Benefits

"We have the ability to compare our responses to the industry rankings to see where we have room for improvement, and also to see where we are doing things well," indicates Joan Burke, president of First Business Trust & Investment Services.

"Our surveys give us information at the company, division, and department levels, if desired. This can be helpful in evaluating division and department leadership, strengths, and shortfalls."

Benefits gained from using outside firms for surveys are higher participation rates, comparative data, identifying employee and employer trends, understanding employee desires for changes in employee benefits and 'quality of work life' issues, assessing morale, and gauging how change is affecting the organization.

Internal Surveys

Suby Von Hayden & Associates gets employee feedback on a variety of issues including social events, wellness programs, and employee benefits. The company, with about 375 employees in five locations, periodically conducts on-line surveys. "Surveys help us define what our employees want and need," says HR director Sherry Gustafson.

Every two years employees are sent a survey pertaining to benefits. "we want to know if we're wasting our time offering certain benefits, or are there other benefits employees are more interested in?" says Gustafson. About 50% of all employees respond. The marketing department sends out the survey and tabulates the results, which are sometimes shared with employees.

Hiring Surveys

Creative Financial Staffing (CFS), a company affiliate of Virchow Krause & Co. LLP, finds temporary and permanent employees for clients. CFS does a follow-up with clients and employees (those who have been subsequently hired full-time) through its "Creative Financial Staffing Motivation and Retention Survey."

In a recent survey, 14,000 letters and e-mailed surveys were sent out, with a response rate of about 14%. Mailing costs were $3000. Some questions included: Did you hire a person who was previously a temporary employee? If so, why? What's the more important thing you're looking for in a staff member? For employees, a key question was "What are the most important factors in accepting a job?"

"For the last two years, the most important job factor has been meaningful and interesting work," says marketing coordinator Kathy Black. "The second-ranked factor was salary and benefits. Probably the most important thing about surveys, from an internal perspective, is that they keep employers aware of what the hot buttons are, what people are looking for. Knowing this is critical for maintaining a competitive edge in the market."

Loaning Money to Employees: Is It a Good Employee Benefit?

Mon, 1 Mar 2004 06:00:00 GMT
Do your employees reap the benefits of a loan program? Some companies find that offering low or no-interest loans is a surefire way to reward people and create a buzz.

Joan Gillman, director of special industry for the UW-Madison School of Business and executive director of the U.S. Association for Small Business Entrepreneurship, advises to "be careful loaning money to employees - the situation is not dissimilar to lending money to family members."

As an employer, you may have access to employees' credit reports. There's something else to consider, too. "If you saw the TV show The Restaurant last year," says Gillman, "you saw how jealous and angry employees become when they learned the owner lured back an employee who quit by offering her a new bike." Moral of the story: If you're going to lend money to one employee, you have to be willing to lend money to all employees. "You have to be able to prove that your loans are unbiased and fair," Gillman stresses.

Loans for Computers

First Business Bank sees making loans to employees (for new computer purchases) as an added benefit. "It's another way to attract and retain good employees," points out senior vice president Michael Losenegger.

The successful loan program for home computers has been in place for eight years. "The program gives employees greater flexibility," says Losenegger. "employees who are more flexible are generally happier." Bank employees like the idea because they can access business files, check their e-mail, and do other work as need be from home.

Penny Byrne, vice president and manager of the bank's loan processing department, adds that "the loan program enabled me to purchase a new computer with no money down and a zero percent loan. Having a computer at home gives me flexibility in my work schedule."

It also helps her stay in the look when unexpected situations arise. "If my children are sick, I can stay home with them but still connect to the bank and get work done," says Byrne. "Many employees have benefited from this program over the years."

First Business Bank makes loans up to $5,000 at zero percent interest to employees who have been with the company for a year. The money must be used to buy computers for home use. Employees repay the loan over a three-year period. "We finance 100% of the purchase price of the new computer system," Losenegger says. (Employees who are with the bank less than a year pay 10% of the purchase price.)

From the Legal Perspective

Drew Cochrane, attorney with Stafford Rosenbaum LLP, believes that, while employer loans can be a good way to recruit and retain employees, employers should fully understand the ramifications of loan agreements. "Loaning money may be considered discriminatory, depending on how the requirements are structured," Cochrane explains. "The program may or may not be 'color blind' and should be looked at to make sure it's not potentially discriminatory."

Tax implications are another possible concern. For example, if five years after the loan origination the employer forgives the principal of the loan, the loan would be considered taxable income by the IRS for both the employer and employee. "And if you don't pay taxes on it, you may be assessed fines and penalties," says Cochrane.

The practice of employer loans raises other questions. "What if you've been employed for four years and 11 months - would you still be eligible for the five-year waiver of principal?" asks Cochrane. "The Employee Retirement Income Security Act (which states that you can't fire employees close to a retirement date to avoid paying anticipated benefits) probably applies here," Cochrane notes.

Other questions: Would loan programs draw people just because of low-interest loans? How will employees pay their employers back? "In Wisconsin," says Cochrane, "if you deduct the loan payments from their paychecks you must have written permission to do so."

For most employers, offering loans to employees is uncharted territory. How should employers proceed?

Cochrane advises to have an attorney draft the agreement so you comply with state and federal regulations. "Employers want their investment to create a buzz and reward eligible employees, but the program has to be set up carefully so the experience is a win-win situation," concludes Cochrane.

Behind the Scenes of Internet Banking

Thu, 1 Jan 2004 06:00:00 GMT
Not long ago bank customers could only dream of keeping track of loan and checking accounts on-line or making on-line bill payments, stop payments, and wire transfers. Today, customers have the availability of banking anywhere, anytime.

Multiple Functions

Customers at First Business Bank will soon have access to Internet check imaging, allowing customers to see the front and back of cleared checks.

"Another valuable service," says Michael Losenegger, senior vice president, "is repetitive wire service. Once it's set up you can make multiple transfers of funds to the same party very quickly and easily."

Losenegger says e-banking makes the check reconciliation process easier. Customers can export information from the Internet and load it to a spreadsheet.

E-banking provides more immediate access to information which helps deflect check fraud. Customers can access their accounts anytime, wherever they are. And a variety of security levels can be set up within a company. "Through passwords and log-in information we can set up the sustem so employees have different levels of access," Losenegger says.

How has e-banking changed the way banks and customers do business today? "Customers have faster and more efficient ways to manage their money," Losenegger says. "It increases productivity-they don't have to call us to inquire about information like what checks have cleared. They can easily find out with a click of a button."

Sophisticated Packages

Ken Thompson, president of Capitol Bank, indicates the bank offers free e-banking for personal customers and two levels for businesses. The basic e-banking level is $15 a month while the premium package, based on usage, runs $25 a month.

What's the return of investment from the bank's perspective? "It's a loss leader for us," Thompson says. "But we recognize that instant on-line access makes it easier for the customer with less impact to the bank." He estimates about 25% of the bank's total customer base uses e-banking.

Capitol Bank promotes e-banking benefits both internally and externally. "Those who use it love it, plus we want our investment utilized," explains Ann Hlavin, the bank's assistant vice president.

Customer Persuasion

Kim Preston, assistant vice president of cash management with First Business Bank, indicates that customers tell her that Internet banking saves them a lot of time. While the bank recognizes that some customers use Internet banking, those who are 'on the fence' need to be persuaded. "It's why we offer three months of free Internet banking - we want customers to discover the benefits firsthand," Preston says.

Judy Olson of the Bank of Verona agrees with the "try it, you'll like it" concept. "There's an education curve involved with Internet banking. But once customers try it, they use it all the time."