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Profile S t r a t e g i e s f o r I n d u s t r y L e a d e r s

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j a n u a r y / f e b r u a r y 2 0 1 1 2:6

Faux pas in global business p. 56 A nonprofit that’s saved lives p. 73 The age of the craft brewery p. 26

Evolution of the Entrepreneur Young entrepreneurs, like Trigger’s Jason Yim, define the newest breed of business leaders. p.44 jan/feb 2011

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The Markets We Serve

Trans Transportation

Const Construction

Muni Municipal

Dev

Development


The Services We Provide

EN

Environmental

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LA

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Surveying

Electrical

3D

GS

PL

WS

Natural Resources

Data Prep & Modeling

Planning

Site Design

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EL

GIS

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Browse through Green Business Quarterly online versions, explore advertising options, and sign up for your FREE subscription on our website: www.greenbusinessquarterly.com GREEN BUSINESS QUARTERLY JAN/FEB 2011

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CONTENTS features

44

gen(i)us species

Evolving from paper routes to Internet start-ups, the new breed of young entrepreneurs is changing the workplace and redefining corporate culture. Smartphones, constant access to all business partners and subsidiaries, remarkably fast expansion, and a philanthropic focus define the entrepreneurs of the 21st century—and they're out to change the world for the better.

56

shut up, shake hands, chill out

What's the best way to greet the head of a Mexican company? Should you clean your plate at a business meeting in China? When, exactly, should you make eye contact with others? Experts answer these questions and more in Profile's exclusive foray into international business etiquette.

jan/feb 2011

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CONTENTS

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Business travel has become an industry of its own. Learn about the billions spent and the miles covered each year by executives and companies doing remote business.

26

D.L. Geary Brewing Co. brews 12 unique beers as a craft brewery specializing in British-style ales in the U.S.

EXPERTISE

ALLIANCE

[24] MADE IN CHINA, MANAGED IN AMERICA Q&A with Dr. Richard Lee, Phil Kelsey, and Torsten Nilson of Amsino International Inc.

[30] THE VOICE OF THE INDEPENDENT PHARMACY If your pharmacist knows you by name, you must be at a Middleport Family Health Center operation.

[26] THE NEW BREW CREW Q&A with David Geary of D.L. Geary Brewing Co. [28] ON PUBLIC DISPLAY Q&A with Leo Galey of KC Fixtures & Display

16 Trying to access your business contacts on the go? A new LinkedIn app could be the solution you're looking for. Check it out—plus other business-savvy apps—in The Toolbox.

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[32] TURNING TRASH INTO TREASURE Warehouse1 reconditions used products for cost-effective, sustainable solutions in materialshandling and storage equipment.

PRODUCTS & SERVICES [34] ALL THE EARTH THAT’S FIT TO PRINT When it comes to the printing business, Greenerprinter does well by doing good. [38] EPIDERMIS FRIENDLY Cosmetic Solutions caters to a conscientious consumer with natural skincare products. [40] INVADING THE AIRWAYS If it's manmade and flies in the sky, it’s likely made from Abrams Airborne Manufacturing, Inc.’s sheet-metal products.

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66

Craig Zoberis of manufacturer Fusion Systems knows the importance of handpicking employees and prepping a future generation.

STRATEGY [66] INVESTING IN YOUR WORKFORCE with Craig Zoberis of Fusion Systems [68] ADVANCING THE HVAC INDUSTRY with Nathan Rothman of Optimum Energy [70] TREATING BUSINESS LIKE BASEBALL with Phillip Ufkes of UEC Electronics, LLC

COMMUNITY DEVELOPMENT [73] REDEFINING (DIS)ABILITY Exceptional Persons, Inc. transforms the lives of disadvantaged individuals and families in need. [75] GIVE, INVEST, VOLUNTEER, ENGAGE, SERVE HUB International Limited is an international insurance broker with local attachments. [77] IN THE HANDS OF THE PEOPLE Kapur & Associates shares its success with employees by giving them partial ownership.

+ PLUS [9] EDITOR’S NOTE [12] RECOMMENDED READING [13] EXECUTIVE Q&A [14] facts & figures

75

HUB International's HUB GIVES program encourages local development, volunteerism, and long-term sustainable support on behalf of the insurance company.

[16] THE TOOLBOX [18] in the workplace [22] FIVE THINGS TO KNOW [82] GLOBE•TROTTING

[80] UNLOCKING THE POTENTIAL Price Engineering mentors up-and-coming students and puts family values first.

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®

Ed itor ia l editor-in-chief

Christopher Howe managing editor

Kathy Kidwell kathy@bgandh.com features editor

Punam Patel punam@bgandh.com associate editor

Leslie Price leslie@bgandh.com correspondents

Cristina Adams, Matt Alderton, Chris Allsop, Thalia Aurinko-Mostow, Zach Baliva, Sally Deering, Tricia Despres, Shawn Drury, Sheena Harrison, Catey Hill, Stewart Lytle, Kelly Matlock, Aaron Mays, Patrick Winegar

Art creative director

W E N

Karin Bolliger designer

Daniel Walden senior photo editor

INTRODUCING THE ALL-NEW

Zach Huelsing associate photo editors

Samantha Hunter Courtney Weber

PROFILEMAGAZINEONLINE.COM Research

View the latest issue of Profile in a full-sized readable format Be inspired by the success stories of featured executives and businesses Discover what’s in store for upcoming issues, and how you can get involved Find out what events the Profile staff will be attending

and more!

director of editorial research

Jeff Powell jeff@bgandh.com editorial research managers

Dawn Collins Carolyn Marx editorial researchers

Emily Bowman, Liz Boyd, Jessica Lewis, John McDonough, Brian Panezich, Issa Rizkallah, Tom Swierczewski, Natalie Taylor editorial research assistant

Justin Davis


editor’s note

C

hange is here. In the past year, we refreshed our look, our content, even the feel of our pages. But as I flipped through past issues and reviewed the changes in Profile, I began to think about what’s stayed the same. Our tagline, for one—Strategies for Industry Leaders—is something we stick by. And what about our mission? I’ve been contemplating for the past couple of months over whether even I knew the direct mission of the magazine, and I came to realize—there isn’t one single, direct mission. After going through a couple of cycles with this publication, I’ve discovered that Profile aims to do so many things: inspire, engage, educate, even enlighten and entertain. With our cover story on the newest strain of young entrepreneurs—the "gen(i)us species," if you will (p. 44)—we outline an intriguing trend that is blanketing the business world. I think you’ll find this story to be one of our most interesting to date, featuring fascinating young entrepreneurs like Jason Yim. We all know that a younger generation must always take over as time goes by, but what in particular about today’s Millennials and Gen-Xers is so different than ages past? I almost believe this tech-pro group of business warriors were bred to succeed, in a world that armed them with the skills to create their own futures—and a certain incredible instinct for knowing a good idea and running with it that may never be explained. One of our goals for Profile is to inform our business readership on a global scale. Our built-in guide on international business etiquette (p. 56) will equip you with the necessary tools to make sure you don’t offend when interacting with clients overseas. Learn when to shut up, shake hands, and chill out, and it will hopefully keep you out of trouble and slide you into a successful deal. Finally, as a print loyalist, I’ve always believed in the entertaining and enlightening qualities of a good story that you can hold in your hands. We’re constantly working to create fresh and appealing layouts, but we also know you want to read something of interest. In this issue, Profile talked to D.L. Geary Brewing Co.’s David Geary (p. 26) about the strong presence of craft beer in today’s market. Learn how this Portland, Maine, brewery with English roots is quenching thirsts and exciting palates across the nation. So flip through and learn from the network of expertise we’ve gathered here—and, most of all, simply enjoy!

Punam Patel Features Editor


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[ recommended reading ]

Bloggers are the new brand reps Yelp.com, Citysearch, Facebook? The world of social media can be sticky for the average entrepreneur. Here are some much-needed tips authored by those who have been there. Citizen Marketers: When People Are the Message 224 pages, $25.00 In their newest book, Citizen Marketers: When People are the Message, authors Ben McConnell and Jackie Huba prove the ultimate power of the ever-evolving Internet. Discarding the corporate advertising being spewed left and right, business owners are beginning to instead rely on the consumer to represent and get the message out about their companies. And what better way to do this than to look to social-networking sites, podcasts, and blogs? Customer feedback reigns supreme in business, so McConnell and Huba reveal the world of these citizen marketers—who are no ordinary citizens at all, but online warriors, armed with the tools that can either make or break a business. The book explores the effects of social media on the worlds of business and culture and gives companies insight into this new breed of influentials.

Also by these Authors Creating Customer Evangelists: How Loyal Customers Become a Volunteer Sales Force 240 pages, price varies Jackie Huba and Ben McConnell set the stage for Citizen Marketers with their book, Creating Customer Evangelists: How Loyal Customers Become a Volunteer Sales Force. In this book, the authors present a how-to on transforming loyal clientele into crusaders for your brand. They offer up six basic principles: continuously gather customer feedback; make it a point to share knowledge freely; expertly build word-of-mouth net-

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About the Authors works; encourage communities of customers to meet and share; devise specialized, smaller offerings to get customers to bite; and focus on making the world, or your industry, better. Using the likes of Southwest Airlines, IBM, Krispy Kreme Doughnuts, and The Dallas Mavericks as examples, the authors illustrate how organizations weave customers into their targeted marketing campaigns, creating throngs of followers that will voluntarily promote their brand.

Ben McConnell and Jackie Huba wear the hats of authors, consultants, and principals of management-consulting firm Ant’s Eye View. They have co-authored two books together and know the ins and outs of social media, brand marketing, and consumer evangelists. Both were named some of the most influential online marketers (McConnell in the top 50 and Huba in the top 10) and also co-author popular business blog, Church of the Customer, wrangling in more than 121,000 readers every day. The cofounders of the Society for Word of Mouth currently reside in Austin, Texas.

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[ executive Q&A ]

Howie Hodges

Vice President of External Affairs, Time Warner Cable Time Warner Cable serves more than 14 million customers today, and Howie Hodges is at the forefront of the company. After taking over as vice president of external affairs last July, Hodges is now responsible for collaborating with inter-governmental groups, the civil-rights community, diversity organizations, and others to create and promote TWC’s policy agenda. Here, we get personal with Hodges on his work—and his play.

Dream job growing up: Entertainment agent/lawyer Worst job I have ever had: In high school, my summer job was working at the largest Pepsi-Cola bottling plant in Buffalo, New York, as a bottle sorter. I worked 8 hours a day in the recycled-bottle return section of the plant where I had to hand sort, pack, and stack on 5’ x 5’ pallets the dirty soda-pop bottles (Sprite, Dr. Pepper, Pepsi, Vernors Ginger Ale). It was a grinding job but it helped me pay for college expenses. In my second summer at the plant, I got promoted from the “recycling pit” to driving a forklift then to fill-in delivery driver.

The best part of my job:

Policy briefings—helping various policy-interest groups, members of Congress, understand business implications of legislation and administrative rulings on cable and broadband issues

Career highlight:

Being a senior Presidential political appointee and co-leading a series of international business trade “matchmaking” missions

Favorite apps:

Navigator–GPS and SprintTV (so I can watch TV on my Blackberry)

My reaction to my new position at TWC:

Fan-dam-tastic!

My mobile phone:

(2) Blackberrys Hours a day spent on the phone:

4–6

Three qualities that make a good partnership:

Capacity, effectiveness, impact

Biggest career obstacle:

Finding a job that I liked directly out of law school. The economy was is recession, similar to the economic times of today, and there was a lot of competition and experienced job hunters searching for jobs along with me and other recent graduates. I was fortunate to get offered a job in the legal department of a bank that I had successfully worked for during the summer as an intern. Lesson learned:

Internships really pay big dividends!! Apparentely the managers I had worked for liked my work ethic and decided to take a chance on me and hired me full time after graduation. On my DVR:

True Blood, Treme, and old episodes of Boston Legal Favorite TV channel:

Channel 4, NBC

TV watched per week:

15 hours—mostly on weekends, the Sunday-morning talk shows, and evening news

Website I visit almost every day:

Favorite TV show:

HBO series: The Sopranos, Six Feet Under, True Blood, and Treme. Also, American Chopper

iTunes

How I unwind at the end of the day: Gym workout—or riding my Harley

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[ facts & figures ]

Effects of a Jet Setter Whether going cross-country or globetrotting, businesses have a huge impact on the travel industry.

$243

Riding the Recessions According to the National Business Travel Association’s research arm, the NBTA Foundation, while the world experienced the worst economic recession in 2008–2009 since World War II, the decline in global business travel was worse in the recession of 2001 (as a result of 9/11).

billion

Projected business-travel spending in 2010

+6.2%

Projected increase in business travel in 2010

54%

–8.8%

of total airline revenue in 2009 was from business travelers

Business travel decline in 2009

$359 billion

The amount business travelers spent in 2009 on hotel, food, and beverage

14%

+2%

Business travel increase in 2002

–11.5%

Business travel decline in 2001

of total global hotel and restaurant sales in 2009 was from business travelers

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[ facts & figures ]

The Aftershock of Iceland's Volcanic Eruption

$367 million

+

The cost companies incurred in business-travel expenses

Eruption Effects Iceland’s volcanic eruption in April 2010 was “a natural disaster for the record books, and one the travel industry will remember and learn from for years to come,” says Michael W. McCormick, NBTA’s executive director and COO.

310,000 business travelers experienced travel disruptions

$200,000 The average business-travel cost per affected company

5,600 scheduled corporate meetings were canceled (among NBTA member companies)

Source: The NBTA Foundation

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[ the toolbox ]

An App-y Medium Top Business Applications for Executives

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LinkedIn Mobile

FlightView

ADAM NASH VP of Search, Platform & Mobile Products for LinkedIn Phones: iPhone, BlackBerry, Palm Offerings: With LinkedIn’s smartphone app, you can connect to more than 70 million professionals worldwide—one of which might be the client sitting in front of you. The app can link with your BlackBerry contacts, calendar, and messaging or invite your networks directly from your Palm address book. Cost: Free linkedin.com/mobile

MIKE BENJAMIN CEO of FlightView Phones: Android, BlackBerry, iPhone, Palm Offerings: Don’t let travel panic get the best of you. The FlightView app features flight tracking by flight number or route; a multiday flight search; in-air flight, gate, and baggage details; flight-status/airport-delay checks; calendarintegration options; tracking maps and delay maps with current radar weather, and more. Cost: Free–99 cents (Android), $1.99 (iPhone), $4.99 (BlackBerry, Palm) flightview.com

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[ the toolbox ]

Iconosys DriveReply

DYMO CardScan Mobile

WAYNE IRVING II CEO & Founder of Iconosys, Inc. Phones: Google Android, Windows Phone Offerings: This app can literally save your life. With distraction-free driving, it allows your phone to auto reply to incoming calls and messages and also features enhanced spam and shortcode filtering, a No-Reply List for those excluded from your autoreply list who do not receive an automated response, and self SMS notifications that let you know which functions are in use. And it’s all with a user-friendly interface—a single click identifies whether you are the driver or a passenger. Cost: $4.95 drivereply.mobi

LISA VANZANT & KOSMAS KARADIMITRIOU Co-creators, DYMO CardScan Phones: iPhone, BlackBerry Offerings: Life’s tough when you’re a power networker. Use DYMO’s CardScan Mobile app to track all the connections you make. Use your Smartphone camera to take a picture of any business card, and CardScan will automatically take all the information from the card and relocate it to the proper positions in your phone’s contact list. Thank co-creators Vanzant and Karadimitrious—plus other team members Long Pan and Doug Knowles—for this one. Cost: $9.99 dymo.com

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[in the workplace]

Root Learning Filled with more than just coffee and water-cooler gossip, Root Learning's offices in Sylvania, Ohio, make the company an ideal fit for its creative, analytical, passionate staff. The inspiration behind the design of Root Learning’s office space was to recreate the feeling you get when you visit a family member’s home for dinner. The place was to be welcoming, refreshing, communal, and comfortable—sparking creativity and allowing individuals to do their best thinking. These traits are certainly apparent in Root's Watercooler Café (below), which was designed to replicate a kitchen—the heart of a home—inspiring a sense of community, and giving individuals a space to share what’s on their minds. The café is so inviting it even draws people who want a good a cup of coffee from the streets of its Sylvania, Ohio, location. The space hosts numerous staff meetings as well as casual morning and lunch gatherings daily. Conveniently located outside of the café is an outdoor patio and grill, similar to a porch that you would find attached to a home, where employees can relax and spend parts of their day working beside a fresh, free-flowing creek.

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[in the workplace]

As you leave the café, you are quickly greeted by the Root family tree (above). The tree was designed to mimic the feel of children’s refrigerator art. Across from the family tree hangs the Root client tree, which is sculpted directly into the wall with real branches that hang from the ceiling. This client tree is Root’s guestbook, and each leaf represents a past or present client. Some clients simply sign the leaves, but often clients will take their leaves back to work to decorate. Some examples include a Swarovskicrystal-covered leaf and a leaf decorated with a light switch and screws from Lowe's. jan/feb 2011

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[in the workplace]

To reflect the vibe of its surroundings, Root’s building is in a park-like setting, with a nature trail for break-time walks, and employees—called "Rootizens"—can access a nearby workout facility for free. Root’s office space is an expression of its brand (with enough bells and whistles for functionality), but is creative and expressive enough to allow people to breathe, relax, and think clearly. Last year, the Wall Street Journal and Winning Workplaces named Root as as one of the nation's top 15 small workplaces. It has a relaxed dress code, flexible schedules, an “open-door policy," and annual stipends for employees for “personal-development” classes.

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The Face of Root Learning Jim Haudan is a different kind OF CEO. He has a passion that goes beyond building his own successful company, Root Learning. For the past 20 years, he has been helping organizations and individuals unleash hidden potential by fully engaging them in their work. Starting as a coach and school administrator, it’s not surprising that the company he cofounded focuses on workforce education—the kind that produces significant results by engaging people to deliver on strategies. Headquartered in a small town in northwest Ohio, Root’s team, just 100 people strong, partners with senior teams at major companies worldwide to build creative ways to execute corporate strategies and goals. The team draws people into its clients' businesses by tapping into basic human curiosity and intelligence. Haudan believes that business results don’t come from creating a great strategy, but from meaningfully connecting all of the people in the company to bring that strategy to life. And the Root team agrees—resulting in five straight years of making the list of the Best Small and Medium Companies to work for in America by the Great Place to Work Institute. Haudan leads a group of creative, analytical people who combine art and dialogue in innovative ways. Root's clients include some of the biggest names in business: Starbucks, IBM, Dow Chemical, Pepsi, FirstEnergy, Bank of America, and Hilton Hotels—more than 500 companies and tens of millions of people. In 2008, Jim wrote a

Jim Haudan

book in response to the impact that the Root method has had on such a great number of people. The Art of Engagement: Bridging the Gap Between People and Possibilities reflects two decades of Haudan's lessons learned in consulting with senior teams at some of the largest companies in the world. A frequent speaker on leadership alignment, strategy deployment, employee engagement, and accelerated learning, Jim has contributed to numerous business publications. He lives in Sylvania, Ohio, with his wife, Michelle. They have three children: Brad, Brooke, and Blake. When he’s not traveling the globe visiting clients, he enjoys relaxing with his family at their lake cottage, playing golf, and going to Jimmy Buffett concerts.

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[ five things to know ]

Hiring a Virtual Employee Most people know the benefits of hiring a virtual employee (who telecommutes instead of working in-house). When done correctly, you get to delegate time-consuming tasks, leverage other people, and create more hours in your day. On the other hand, if you’re not sure how to hire properly, you can end up with a huge headache. Rachel Rofe knows all about the stress in hiring a virtual employee. As the owner of outsourcing company Burn Your To Do List, she’s screened through thousands of candidates for the top people to work with. Here, she shares five tried-and-true tactics you can use to ensure you find the best possible virtual employee.

1

Make prospects prove themselves. There are thousands of freelancers vying for work. Some of them send out cover letters for every job they see without even looking at the descriptions. Using a test eliminates 70 percent of people from the start and allows you to immediately look at the highestquality candidates. In your job description, tell people everything you want them to do: submit a résumé, outline their skills, etc. Also include a nonsense direction such as, “Make sure to include the phrase ‘yellow monkey’ at the beginning of your cover letter.” This is a great way to gauge how good a prospect is with details. It’s also very powerful in getting a grasp on how your prospects can follow instructions. You'll be shocked at the amount of people this eliminates from the start.

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2

Ask for samples that apply directly to YOU. Some people overpromise even though they might not have real skills. Other people might offer “onehit wonder” samples (such as a great article they wrote way back when), while others may even give false samples. Before even thinking of hiring someone, ask for a sample that is relevant to you. For example, if you want someone to write articles for you, ask for a 200-word sample article about your industry. If you want them to answer e-mails, give them a few test questions to see how they would respond.

3

Find out what hours they're available. This can be very crucial— especially if you’re hiring people around the world. If you’re hiring a virtual assistant, for example, look at when you would need them to be around. If you want them to answer e-mails, make phone calls, take notes on conference calls, etc., you would likely need them to be around during business hours. If you’re hiring someone for something else, it might be important to you to have at least an hour overlap every day where you can confer on project details. Assess your needs and make sure the person you’re thinking about hiring can work with them.

4

Don't overcommit yet. Always start off small. Let people you hire know that you want to do a small project (or 30-day trial) before committing to anything longterm so you can both evaluate how you like working with each other. Not committing to anything is great because the person you’re working with knows they’re not guaranteed anything. They’re not relying on your income long-term. If you give people full-time jobs right away, it’s a lot harder to let them go if they don’t do a good job—you may have formed emotional bonds, or you may feel responsible for their livelihood.

5

Run a Google search. A simple Google search can show a wealth of information. By just typing in someone’s name, you can potentially find their personal blogs, their social-networking accounts, or posts they make on forums. All of these things can be incredibly helpful in deciding if you want to work with someone. Check out how your prospect talks with other people. Is he negative? Does she come up with solutions? Does he seem happy? How does she relate to people? This quick query can save you loads of frustration—or reinforce your gut feeling that he or she is a great fit.

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P N UY G I S ODA T


expertise expertise

24 amsino international inc. 26 D. L. Geary Brewing Co. 28 KC Fixtures & Display

Made in China, Managed in America Q&A with Dr. Richard Lee, Phil Kelsey, and Torsten Nilson of Amsino International Inc. Topics Discussed:

• Globalization • The power of outsourcing to China • A recession-resistant medical-device industry

BY THE NUMBERS

24

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by Matt Alderton

T

he “Great Recession” sent many its Pomona, California, headquarters but companies into a downward spiral outsources its manufacturing operations characterized by job loss, sales de- to three company-owned plants in China. cline, and down-to-the-bones budget cuts. The result is a business model that simulHowever, it also sent one company—Am- taneously embraces and resists the influsino International Inc.—into an unprecence of globalization in pursuit of efficienedented two-year growth phase in which cy. Amsino’s founder, Dr. Richard Lee; it doubled its US business. A medicalits executive vice president, Phil Kelsey; device manufacturer whose products are and its president of contract manufacturdistributed in 30 countries worldwide, ing, Torsten Nilson, share their secrets for Amsino handles administration, engibuilding a company that thrives—both in neering, design, sales, and marketing from good times and bad.

3: number of wholly owned manufacturing plants that Amsino has in China • 74%: percentage of Amsino’s total sales made in the United States • 10%: percentage of Amsino’s total sales made in China • 30: number of countries where Amsino distributes its products • 50%: approximate percentage of Amsino’s total business that’s private label • 36: number of US-based Amsino employees, out of more than 1,500 total employees

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expertise

What has enabled Amsino to grow when many companies feel lucky just to survive? Dr. Richard Lee: I believe our business model is unique and strong. We were one of the first US companies to set up medical-device manufacturing operations in China in the early 1990s to bring products back to the US market. Over the years, we have built vertically integrated and low-cost manufacturing capabilities that allow us to offer high-quality products at a competitive cost. Phil Kelsey: One of the things that’s enabled us to thrive is the economy. Companies are trying to maximize same-customer profitability. How do you do that? It’s hard to raise prices in this market, so you lower your manufacturing costs. People come to somebody like us to be in a lower-cost position. Do you attribute your success to your market or your business model? RL: I would say both. I consider the medical and pharmaceutical industries to be recession-resistant— although not recession-proof. We’re very fortunate to be in this industry. The demand for healthcare is still out there, and the elasticity of demand is small. Torsten Nilson: Our success is based on our core knowledge of medical-device manufacturing and also on our robust platform in China, offering an attractive solution for our customers to improve their margin by working with Amsino. As we move from recession to recovery, what are Amsino’s greatest challenges? RL: Chinese labor cost has been increasing—although it is still very competitive globally—and Chinese currency is on the upward trend. PK: Last year, the cost of freight and logistics from China to the United States dropped tremendously because there was so much capacity; the retail markets were down, so the freight companies had excess capacity and prices were cheaper. Now those same freight companies have taken boats out of the water and reduced capacity. So, the price is back up.

over the years 1993: Founded Revalidation

Planning

2003: Celebrated its 10-year anniver-

sary; by its 15th anniversary, Amsino will have three factories in China employing approximately 1,500 people Process Control & Mgmt

Process Validation Cycle

Performance Qualification

Installation Qualification

Operational Qualification

2008: Reorganized its business into

three distinct units, focusing on global sales, contract manufacturing, and greater China 2009: Certified as a Minority Owned Business Enterprise (MBE) by the Southern California Minority Business Development Council 2010: Planned an IPO to raise money

the highest possible standard: Amsino

allocates significant resources to quality assurance, incorporating quality systems (outlined above) into every facet of its manufacturing processes.

Currently, 75 percent of Amsino’s customers are American. Will your operations in China make the country a future target? RL: Yes, we consider China a strategic market for us—it presents a major growth opportunity, both on the top line and on the bottom line. Our sales in China are doing well. China is on its way to becoming the second-largest market for medical devices, next to the United States. We have many years of experience in that market, three manufacturing plants in the country, and an extensive product portfolio to offer that separates us from local manufacturers.

It seems Amsino owes a lot of its success to its “dual citizenship” in China and the United States. How do you successfully run a global business? RL: It is quite a challenge. Four key elements are important: quality, research & development, cost, and leadership.

What’s next for Amsino? RL: Contract manufacturing is a major business unit for Amsino, and we see more opportunities ahead that could tremendously drive growth. Also, we still have many countries and regions untouched and will set up more distributors globally. Finally, we are planning an IPO to raise money to invest in manufacturing-facility expansion, R&D, building and expanding distribution channels in China.

TN: Manufacturing is, in principle, the same, and the key to success is leadership. In China, we take advantage of the lower labor cost, but we also need to do automation to secure good quality and low cost. In both the US and China, medical-device manufacturing requires very stringent work instruction.

TN: Our focus is patient safety, and we constantly develop new medical devices in the field of safety products, infection control, and antimicrobial coatings. We have developed strategic technology partners we work with for new products. This gives us a special niche, which attracts strategic customers. [P]

that it will invest in infrastructure expansion, research and development, mergers and acquisitions, and new Chinese distribution channels

strategy to share

keep a solid base when outsourcing Although it’s effective, outsourcing isn’t easy. Based on his experience successfully managing Amsino’s international operations, CEO Dr. Richard Lee recommends that companies invest not only in infrastructure, but also in talent. “A strong management team is required to develop and drive strategies and plans to grow the company,” he says.

PROMOTE WHAT MAKES YOUR BUSINESS UNIQUE Executive vice president Phil Kelsey, who is also president of global sales for Amsino, advises companies to focus on their key differentiators. “In sales and marketing, you always want to look for points of differentiation,” he says. “One of our key differentiators is that we are a US company with US management.”

jan/feb 2011

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expertise

the early years February 1984:

Geary travels to Britain for four months to learn the trade June 1984: He returns to the Unites States, creates a business plan, and sets about raising capital October 1984: Geary

incorporates D.L. Geary Brewing Co. 1986: Production

begins December 1986: The

first pints of Geary’s Pale Ale sold

strategy to share

The New Brew Crew

Q&A with David Geary of D. L. Geary Brewing Co. Topics Discussed:

by Chris Allsop

• The American beer-scape • Tastelessness • Baby boomers in Florida • Automation • Microbreweries

eer is back—though D.L. Geary Brewing Company knows it never really left. A Portland, Maine-based craft brewery specializing in British-style ales, D.L. Geary uses traditional ingredients and methods of production to create 12 beers. A member of the Brewers Association, D.L. Geary currently distributes its beers in New England, the Mid-Atlantic, and the East Coast. Here, president David Geary explores the panorama of American microbreweries and what really pleases our palates.

BY THE NUMBERS

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FOCUS, FOCUS, FOCUS "Never take your eyes off the prize. Never blink. Plan your work and work your plan."

Can you explain why is there so much bad beer sloshing around America? Let’s not conflate tastelessness with bad beer. The fact is that the large commercial brewers—Budweiser, MillerCoors—all make technically perfect beers. They’re flawless. It’s just that the style doesn’t appeal to about 10–14 percent of the population, and that’s where we come in. Are people more aware of microbreweries? Absolutely. Craft beers are currently the only growth segment in the industry. But it depends on the region; in Florida, the growth is not even 1 percent, whereas in Portland, Maine, it’s probably closer to 20 percent.

1983: incorporated • 12: number of beers brewed • 30: employees 8–10%: growth per year • 25,000: square footage of production plant

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expertise

Has the increased consciousness regarding wine tasting had an impact on the beer industry? I think it has elevated beer’s profile among consumers. We do dinners throughout the year where we pair beer and food. Additionally, having descriptive beer lists is having an effect; 25 years ago, these things didn’t exist. You still use traditional methods to brew your beer—is this difficult to maintain against breweries using cheaper, more-modern methods? There are certainly more-modern methods that deal with automation and clean-in-place systems, but it isn’t cheaper. Automation is great if you can afford it; if you’re brewing on a very large scale, then you do need automation because no one could physically handle all the ingredients on the scale that we’re talking about. Our process, which is very similar to the system predominant in Yorkshire, England, involves a lot of manual work—cleaning, bags of this, pallets of that—and it’s hard physical labor. However, our bottling line, filler, and labeler are state-of-theart. In order to package successfully, you really need to spend the money on the equipment. With 8–10 percent growth per year and plans to expand your plant from 25,000 to 50,000 square feet, are you apprehensive about outgrowing your microbrewery status? We’re a regional craft brewer, and we’ve got plenty of market to work, plenty of people to sell beer to. I’m not interested in moving beyond the core 15 states that we’re in. And the plan for the next five years? We are currently working our two most promising markets, Massachusetts and New York, with an aggressive sales-and-marketing strategy, and we're getting good results. Also, after ignoring it for a long time, we’re going into Florida. This state tends to be a wasteland for craft beers, but something is happening demographically that I believe is going to change that: the baby boomers are starting to retire. Twenty-five years ago, the baby boomers were the heart of our market. So they’re retiring, moving to Florida, and taking their beer preferences with them. Is there a beer in the world that you look up to and consider the pinnacle of brewing perfection? That would be all of mine. Modesty aside! As far as lagers go, Pilsner Urquell is a delightful beer. In London, John Smith makes some wonderful real ales, while one of my favorite medium-sized breweries in East Anglia is Greene King. They make some superb beers. [P]

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expertise

Now, the company reaches beyond its home in Kansas City, Missouri, to serve customers in all 50 states and in Canada, Mexico, Europe, and Asia. Looking back on it all, Galey has no regrets on taking the entrepreneurial route. What prompted you to start KC Fixtures & Display? In high school, I worked for Wal-Mart, and my bosses wanted to me go into the company's management program, but I decided to go college to be an attorney. Instead of being an attorney, I got into retail-store fixtures. One summer, I was looking for a job and ran across a company that was in the retail-store-fixture business. I was hired on the spot, and that’s how I got my start in this industry. I began KC Fixtures & Display in the basement of my house in 1994. Within the first six months, the company made about $500,000 and it took off from there.

On Public Display

Q&A with Leo Galey of KC Fixtures & Display Topics Discussed: • High-school employment • A change of plans • A distaste for automated voicemail systems • The employee as number one • Amusement parks

BY THE NUMBERS

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by Aaron Mays

I

n his undergraduate years, Leo Galey pictured himself writing legal briefs and delivering opening arguments. But once he discovered a passion for retail and store design, he changed his path. He researched the industry, drafted a business plan, created his own venture, and, in 1994, launched KC Fixtures & Display, which supplies retail stores with display fixtures. Shortly after, he jumpstarted the company’s profits by securing his first major contract with local amusement park Worlds of Fun.

How did you expand the company and build its customer base beyond Kansas City? The uniqueness of the products and displays we feature online is one reason why we have picked up business overseas. As you know, the Internet is a very powerful marketing tool, and we utilize it. We get about 50–100 new customers each day through our website. We try to offer the best price and to have the largest inventory so we're able to get products out the door. We also go to a national trade show in Las Vegas called GlobalShop, which is the largest trade show for store fixtures for retailers in the country. Another unique aspect to KC Fixtures is that we don’t have a minimum purchase requirement; you can spend $1 or $500,000 with us. It doesn’t matter to us because we’re going to take care of you no matter if you’re a big or small company. One of my philosophies is that you take care of the customer no matter what. When they call, they have a need, and we satisfy that need no matter what. We always have a personal touch to our business. We don’t have an automated voicemail system. When you call us, you’re going to get a real person. How have you managed the company’s growth? For me, it’s the personnel or the associates that we have in-house. My philosophy is different than a lot of other places. I don’t look at my customers as number one. The people within my house are number one. Number two is the customer. And if I am taking care of people in the house, then the

1994: founded • 830: largest rollout of new stores • 45: employees • 150,000: accounts

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expertise

over the years 1994: Leo Galey founds KC Fixtures

& Display 1995: KC lands its first major contract with Worlds of Fun 1997: Launches website, increasing

the firm's visibility 2000: Opens new headquarters,

which doubled the company’s inventory capability 2004: Expands business overseas 2010: Secures a contract with a New custom creation: A display by KC Fixtures for ExactMats.

customer becomes number one without anyone thinking about it. What makes your company stand out above the rest? The biggest thing is that when a customer has a problem, we take care of it. We don’t run from it. We look at it from the aspect that things happen. We are not perfect. We don’t make all the right decisions. And if it’s our fault, we pay, or if it’s the freight carrier’s fault, the carrier pays. And sometimes the customers make a mistake, and they pay. But we work it out. We take care of that problem whatever it might be.

Jersey-based retailer to design fixtures for 830 stores

strategy to share

EMPLOYEE PRIORITY "Take care of the people who are inhouse first, and in turn, they will take care of the customers."

What’s a major hurdle you overcame while starting KC Fixtures? When starting the business, I was very fortunate to be able to get a contract with a local company called Worlds of Fun. We contracted with Worlds of Fun to do eight retail stores within the first six months of starting my business. That was a huge challenge. We were brand new, right out of the ground, working with designers from California. We literally stayed up night and day for a couple weeks. But we got the job done. We’ve continued our relationship with Worlds of Fun, and we do a lot of support fixtures for corporate offices and other theme parks, as well. How has the recession affected KC Fixtures? The beauty of our business is that a good retailer is going to remodel its store. It’s our job to help them to make different remodels or visual displays to attract more customers. So in a recession, we will still be able to grow because a good retailer has to change—and we want them to call us. [P]

LASER SHARP: KC Fixtures designed and built this custom, solid-wood display, which features laser-etched branding and custom-made crown molding.

jan/feb 2011

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alliance 30 Middleport Family Health Center 32 Warehouse1

The Voice of the Independent Pharmacy If your pharmacist knows you by name, you must be at a Middleport Family Health Center operation by Stewart Lytle The image of a familyowned business is usually that of a second- or even third-generation owner following in the footsteps of an older patriarch who built the business. The Middleport Family Health Center, five other drug stores, and two medical-supply companies are family-owned businesses in northern New York State, but owners Steve

Giroux and Jim Miles hardly fit the image of deceased or elderly patriarchs. They are first-generation entrepreneurs who have created successful businesses. Giroux is the first member of his family to become a pharmacist. Born to a family of musicians, he describes himself as “the black sheep of the family.” In the future, the pharmacy

empire may include his son, Thackery, who is considering going to pharmacy school. The business started in 1983, two years after Giroux graduated from pharmacy school. Having grown up working in a drug store, the wellmentored Giroux bought a lowvolume store in Snyder, New York, and turned it into his highest-vol-

ume store. He continued to acquire stores throughout the 1980s and 1990s, until he and Miles became partners and bought the first Rosenkrans Drug Store in Medina, New York. Miles has two sons and two daughters-in-law who are pharmacists. He and Giroux acquired an Oakfield, New York, pharmacy that Miles’ son

strategy to share

EMPLOYEE SNAPSHOT

A PERSONAL TOUCH GOES A LONG WAY "We are in the wellness business, so it is critical that we know all of our customers, not just by their names, but by what their wellness issues are," Giroux says. "We encourage our pharmacists to reach out to customers to make sure they are taking their medicines. We work with doctors to make sure the drugs they are prescribing are the most affordable. To reach this goal, we empower every employee to be creative and solve our customers’ issues. We strive to make every experience with us pleasant."

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Name Title

Why do you like working for Middleport?

BY THE NUMBERS

jan/feb 2011

Carol Amber

Ruth Verrati

Lawrence vonEuw

Tammy Haselet

Manager, Barker Store

CFO/HR, Middleport Family Health Center

Manager, Lockport Home Medical

Pharmacy Technician, Middleport Family Health Center

"Steve gives me total control over my employees and my store. I wanted to add a hardware section to the store, he said 'go for it.' He is always behind me, and he supports our fundraising efforts for the American Cancer Society."

"I like working at Middleport because the store takes pride in being involved in the community. Because we are a small store, I am given a lot of tasks, which makes my job interesting. Steve gives you a lot of room to be creative."

"Working for Lockport gives me an opportunity to work with people who have disabilities and help them regain their freedom to get around. It is very fulfilling and at times overwhelming. I get to be so involved with clients."

"I love working here because it is a great community where everybody knows everyone else’s name. The company is a family-oriented business, and Steve is the greatest boss. He does so much for his employees."

6: total number of pharmacies owned by company • 2: company’s medical-supply stores 75: employees • $20 million: revenues • $10: cost of filling a generic prescription • 27: years in business

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GreensAd_PRESSREADY3.pdf

1

8/24/10

12:55 PM

Parata Salutes

In Giroux’s ideal world, doctors would diagnose a patient’s condition and then turn that diagnosis over to the pharmacists to prescribe the correct and most affordable drugs.

Middleport Family Health Center

Steve Giroux, Co-Owner, Middleport Family Health Center

C

John operates. They then purchased a drugstore in Hilton, New York, that Miles’ other son Peter runs. With revenues of $20 million and 75 employees, Giroux is not concerned about competition from the big-box drug stores. “We can beat them all day long,” he says. Their key to success is building strong relationships with the customers. He rejects the old adage, “If your pharmacist knows you by name, you must be really sick.” Giroux trains his employees to know all of the customers by name, but that is just the beginning. “We are in the wellness business,” he says. For that reason, his pharmacists not only know the customers by name, but they often know what medicines the customers are taking without looking up their records. “Our experience with customers is always pleasant,” Giroux says. Giroux is taking that positive relationship with customers a step further and setting what may be a new standard for the pharmacy business. He and his daughter are working with the University of Buffalo’s pharmacy school to develop a residency program. The additional training will help pharmacists be more proactive, even calling their customers to make sure they are taking their medicine. In Giroux’s ideal world, doctors would diagnose a patient’s condition and then turn that diagnosis over to the pharmacists to prescribe

the correct and most affordable drugs. More importantly, Giroux says that doctors should spend one semester learning pharmacology, compared with four years for a pharmacist.

M

Y

CM

MY

The competitive challenges that Giroux sees for independent pharmacies come from bigbox stores like Wal-Mart offering cheap generic drugs and from the unregulated Pharmacy Benefit Management Companies (PBMs). He explains that a generic drug costs about $10 to fill. When Wal-Mart offers the same prescription for $4, it is trying to generate traffic in the store. “Maybe while you are there getting your prescription, you will buy a television set,” he says. However, by selling prescriptions below cost, Wal-Mart “diminishes the value of the product and demeans the profession,” Giroux says. He is even more alarmed about the practices of the PBMs, like CVS’s Caremark, which have built networks of retail pharmacies to control the delivery of prescriptions. Giroux and others believe that the PBMs are engaging in predatory practices that are detrimental to customers. “We hear all the time from people that they would like to shop with us, but their company’s health plan won’t let them,” he says. As president of the state and national community pharmacists associations, Giroux hopes to persuade the Federal Trade Commission, Congress, and state legislatures to incite change and create a level playing field for independent pharmacies. A noble mission for a local advocate. [P]

CY

CMY

K

Committed to helping people with their medication needs with exceptional care and service, enabled by Parata’s next-generation pharmacy automation.

www.parata.com (888) 727-2821 jan/feb 2011

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alliance

Turning Trash into Treasure

Warehouse1 reconditions used products for cost-effective, sustainable solutions in materials-handling and storage equipment

by Patrick Winegar In 1986, Warehouse1 owner Mary Lou Jacoby built the foundation for her enterprise with junk. “I was attending a lot of commercial auctions... and I was probably the only person there without overalls and a cigar in my mouth,” Jacoby says of buying and selling scrap materials throughout the Kansas City, Missouri, area. A business associate would soon lend her the use of a warehouse containing leftovers from these auctions, and within 90 days, Jacoby would turn a profit,

pay off the building, and set the stage for one of the region's premier materials-handling and storage-equipment firms—aptly dubbed Warehouse1. Without a bank loan, Jacoby built and expanded her business with its own cash flow. Over the years, the company has adapted to meet the changing needs of its consumer base. “I look at a business like a child, like a kid growing up,” Jacoby says, “and it grew with our customers, which was fortunate. As they became more

sophisticated and demanded more services, that required us to grow and learn and become more proficient at what we do.” The company provides materials-handling equipment and services, such as conveyors, industrial shelving, pallet racks, and warehouse layout and installation. Much of Warehouse1’s business developed through the restoration of used storage equipment. Through reconditioning products, it’s able to minimize costs as well as engage in sustain-

able environmental practices. “We are in the business of finding value in things that other people don't see,” Jacoby says. By combining an inventory of restored, traded, and new industrial equipment, the company is able to produce the most cost-effective solutions for its customers. Warehouse1 prides itself on its high standards of customer service, with over 80 percent of its business derived from referrals. “I’d say that the one term our customers use about us more often than any other is that we’re

EMPLOYEE SNAPSHOT

strategy to share

Nurture your Relationships "The reason the company is successful is because of its associates and its relationships with customers. Because of this company culture, Warehouse1 has developed a fantastic reputation in customer service," Jacoby says, advising, "above all, create sustainable success and improve the lives and happiness of every person or organization associated with the company."

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Name

Myra Struchtemeyer

Kirk Nielsen

Shiloh Young

Francisco Radillo

Title

Accounts Receivable

Government Project Coordinator

Administrative Assistant

Fabrication Supervisor

18

10

3

15

"Mary Lou is a wonderul mentor, and she helps you gain your self-confidence and self-worth. I'm confident in my ability to get the job done."

"I go way back with this company. I was one of the top 10 customers. I knew that I could depend on them to have stuff in stock and delivered in a timely fashion."

"I like the people I work with. People say work is your second family, and that's how I feel. I spend a lot of time with the people here, and I enjoy it."

"When I first started here, I didn't know how to weld. Now, I'm in charge of the welding shop. I've been learning a lot. What I like is that you can climb the ladder."

Years at Warehouse1 Why do you like working at Warehouse1?

jan/feb 2011

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“We are in the business of finding value in things that other people don't see.” Mary Lou Jacoby, Founder

We want to congratulate Mary Lou Jacoby & Warehouse 1 on all of their success

Employee Benefits Financial Services Commercial Insurance Personal Insurance friendly people,” Jacoby says. The company has also produced a congenial, family atmosphere among the workforce, establishing a unique corporate culture built on the Midwestern values of hard work, friendliness, and fair play. By cultivating this positive workplace environment and offering a comprehensive benefits package, including tuition, Warehouse1 retains its employees, with associates having an average tenure of eight-and-a-half years. From its beginning, the company has been active in supporting community development. Centered in a once economically challenged area of Kansas City, Warehouse1 has provided not only charitable donations in hundreds of thousands of dollars worth of material to local nonprofits, but jobs and infrastructure for the surrounding area. Its environmentally friendly business practice of product restoration has also kept thousands of tons of waste from landfills. “It's about creating success for everybody associated with you and your company,” Jacoby says, “Leave the world better than you found it.”

Warehouse1 benefits greatly from its relationships with business associations. Through the Helzberg Entrepreneurial Mentoring Program, National Association of Women Business Owners, and the Women's Business Enterprise National Council (WBENC), Jacoby built a network of peers and advisers that helped her company to expand. After getting her firm certified with WBENC in 2002, Jacoby and her staff began to seek out contracts from the General Services Administration and the Department of Defense. To this day, government contracts compose an integral part of Warehouse1's business strategy. Warehouse1 has shown remarkable growth from its founding in 1988. Throughout the company's progress, it has been guided by the principles of sustainable success, community development, and the joy to be found in a hard day's work. “We care about each other, and we like each other,” Jacoby says, “We like what we do and find pleasure and fulfillment in doing a good job.” [P]

Steve Metzler Mark Simcosky Gary Morgan Beth Peterson Brian Whitaker Cheryl Daily Alan Corbet John Ritter 1201 Walnut, Suite 1400 Kansas City, MO 64106 (816) 421-6116 www.metzlerbros.com jan/feb 2011

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products & services 34 Greenerprinter 38 cosmetic solutions 40 Abrams airborne manufacturing, inc.

All the Earth that’s Fit to Print

When it comes to the printing business, Greenerprinter does well by doing good

GREETINGS FROM NATURE: Greenerprinter reflects its eco-friendly products and practices in the photography it chooses for its greeting cards.

by Shawn Drury

M

ario Assadi has never been the kind of person who waits for opportunity to come knocking on his door. As the owner of Greenerprinter in Berkeley, California, Assadi seeks out the curve only so he can stay ahead of it. This is never a bad philosophy for any business owner, but in the ever-

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changing world of commercial printing, forward thinking can be the difference between barely getting by and profitability. Assadi has been one step ahead of the game since his family moved to the United States from Iran in the mid-1970s. Landing in Chicago, the Midwestern winters took some getting used to. Then, Assadi visited Berkeley during Chicago’s Blizzard

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MARIO ASSADI, Owner Mario Assadi has the sort of biography that gives hope to immigrants everywhere. After arriving in the United States as a young man from Iran, Assadi received his degree in mechanical engineering from San Jose State University in 1985. He worked briefly for a large corporation, before deciding that he wanted to go it alone and do things his way. In 1988, he started Tulip Graphics, and he hasn’t looked back. Assadi has helped his company weather many changes over the years, including growing concerns about pollution and waste in the print industry. Inspired by the birth of his first son and a passion for the environment, Assadi took an early interest in trying to make printing more sustainable. In 2004, he launched Greenerprinter, which has become an industry leader in green printing.

of ’79 and was sold. “I love northern California,” Assadi says. “It’s the epicenter of creativity and innovation, and the great weather is a bonus.” After graduating from San Jose State in 1985 with a degree in mechanical engineering, Assadi went to work for a large company. After a few years, he decided to start his own business. “I wanted to be in charge of my own destiny,” he says. “I wanted to do it my way.” In the late 1980s, desktop publishing was revolutionizing the printing industry. Sensing an opportunity, Assadi founded Tulip Graphics, Inc. and immediately found himself on the cutting edge. Technologies that are now commonplace— such as PostScript and page-layout software— were still in their infancies. Assadi started with straightforward black-and-white imaging, but within a year made the leap into high-end, digital color reproduction, offering high-resolution scanning, proofing, and color separations.

Introducing the new Fujifilm Digital Inkjet J Press 720 and featuring the Xerox® Color 800 Press, the latest innovations in digital printing. Promising unsurpassed quality and tremendous flexibility – all at the speed of your business. Only with Fujifilm.

Graph Expo 2010 • Oct. 3-6 • Booth #627 & #1469 FUJIFILM North America Corporation, Graphic Systems Division Phone: 800.877.0555 • Email: contact@fujifilmgs.com • Web: www.fujifilmgs.com jan/feb 2011

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products & services

Notable Products & Services Greenerprinter offers a full range of personaland commercial-printing products. Marketing manager Steve Kozel says that the company has made significant inroads in the green holiday-card market, much as it has in the market for green wedding stationery. The company continues to expand its “smart printing” concept, a process that capitalizes on variable data-printing technology to create a single, unique, printed piece for each recipient. This type of targeted marketing boasts higher response rates, fewer over-runs, and faster production—all of which make it, by definition, green. These services, combined with Greenerprinter’s core business products and green signage products, will be the staples of the company’s product line in 2011.

In the 1990s, change was again on the wind as digital-printing technologies began to emerge. Assadi made the jump to digital printing in 1997. It was a risky decision, which required a significant investment in machinery. Customers, sensing that early digital presses were unable to match the precision of offset processes, were slow to adapt. Easing them through the transition was a challenge, but Tulip emerged a stronger, more-confident company with a loyal customer base.

his paternal instincts asking tough questions of his conscience as a business owner: “What kind of world will my children grow up in? How is my business contributing to that world?” He didn't like the answers. Assadi saw a global environment under great duress, and he had to admit that printing—with all the trees that are felled, the toxicity of inks, and the waste of the industry in general—was among the biggest contributors to the problem.

By 2001, under Assadi’s leadership, Tulip had added offset printing to its range of services and was a full-fledged commercial printer. In less than 15 years, Assadi had brought Tulip from a fledgling start-up in one of the most dynamic industries in the country to a market leader.

Assadi decided that his business was going to be different, and he formed Greenerprinter. Becoming a sustainable printer meant overhauling the company’s operations entirely, from the paper and ink it used to the equipment it purchased to the way it maintained its facility. The company put its carbon footprint in the same sentence as its profit margin.

A lot of CEOs would have been tempted to put up their feet and take a deep breath or two. However, having recently become a father, Assadi found

“From materials handling, how we organize different stocks, the chemicals we use, the ink—it’s all designed to use the least amount of resources

ECOSPACE: In addition to ts sustainable printing practices, Greenerprinter also constructed its environmentally friendly office space in 2004.

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possible,” Assadi says. “We do not want any virgin paper; it is all 100-percent recycled paper.” Such a commitment comes with a cost, but it is one Assadi is willing to make. While some might think the decision to go green in the middle of a deep recession is a not risk worth taking, Assadi sees the opposite. And given his track record, those instincts are well worth trusting. [P]

Assadi saw a global environment under great duress, and he had to admit that printing—with all the trees that are felled, the toxicity of inks, and the waste of the industry in general—was among the biggest contributors to the problem.

PRODUCT OFFERINGS: Though Assadi had to overhaul his

processes and materials to become environmentally friendly, his high standards for product excellence remain unchanged, as seen in these (clockwish from top) business cards, brochure examples, and eight-page booklet.

SMART PRINTING: (right) Greenerprinter's printing process takes adavantage of variable data-printing technologies to produce a single printed piece for each recipient.

jan/feb 2011

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products & services

Epidermis Friendly

Cosmetic Solutions caters to a conscientious consumer with natural skincare products

by Cristina Adams

F

rom facial cleansers and anti-aging creams to acne remedies and sunblock, skincare is big business. Worldwide, it generates nearly $50 billion in annual sales; in the United States, experts predict that it will enjoy a compound annual growth rate of 5.6 percent through 2014. Although, if post-recession conditions prevail, that number could top 11 percent. Economic doldrums notwithstanding, people are eager to lay their hands on products that promise to pamper, heal, or protect their largest organ: their skin. As the population ages, the market grows, making skincare a commercial

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arena ripe with possibilities and profits for companies with the right ideas, scientific know-how, and marketing savvy. Companies like Cosmetic Solutions are thriving in the new skincare market. Founded in 1992 by two brothers, Dr. Hilton Becker and Mervyn Becker, Cosmetic Solutions formulates, manufactures, and markets private-label natural-skincare products for the medical community— particularly plastic surgeons and dermatologists—and aesthetic-skincare businesses. Its product lines range from cleansers, toners, exfoliants, and moisturizers to sun protection, antioxidant creams and serums, eye and lip products, masks, a men’s line, specialized products, and more.

The company’s products are available in more than 30 countries; the United States currently accounts for its biggest market, followed closely by Asia, Europe, and the Middle East. Growth, too, has been robust. In 2009, sales were $6.5 million, and sales for 2010 were slated to come in at around $7 million. From 2006 to 2009, Cosmetic Solutions grew an eye-popping 112 percent, earning itself a place on the Inc. 500 list of the fastest-growing private companies in the United States for the second time. None of this would be possible if a patient of Dr. Becker’s had not reacted badly to a skincare product and contracted dermatitis. According to his brother, it was all the motivation the world-famous

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plastic surgeon and South Africa native needed to develop his own natural alternatives. “His mission was to create products using natural ingredients that had also been scientifically documented to have a beneficial effect on the skin,” Mervyn says. “He wanted to eliminate the allergic reactions that occur from the chemicals, preservatives, fragrances, and other ingredients used in traditional products to make them smell, feel, and look good.”

Mervyn Becker, Founder A native of Johannesburg, South Africa, Mervyn attended the University of the Witwatersrand, where he received both a bachelor’s and master’s degree in accounting. In 1985, he emigrated to the United States, where he worked as a financial controller in New York City before going on to manage his brother’s medical practice and eventually cofound Cosmetic Solutions in 1992. Married with three grown children, Mervyn lives in Florida, where, in his spare time, he takes advantage of the abundant beachfront by windsurfing, sailing, and paddle boarding.

notable Products Extensive research, development, and testing go into creating Cosmetic Solutions’ skincare formulas. The company’s broad range of products includes cleansers and toners, exfoliants, and moisturizers. The company has a multitude of products for younger-looking skin, which include antioxidant treatments, corrective masks, sun protection, and pigment correction. The company also produces specialized products to treat problem skin, stretch marks, scars, cellulite, and more. In addition, Cosmetic Solutions has begun making spa products and a line of men’s products.

So the surgeon researched, created, and tested the formulas, and Mervyn, an accountant, began manufacturing them. The company’s Professional Solutions house brand included certain products, such as in-office chemical peels and compounding products, which are only available to medical professionals. As such, plastic surgeons were the company’s primary clients. However, as rave reviews stacked up, the telephone started ringing. Retailers, direct-sales companies, multilevel marketers, even Internet businesses—all wanted in on the action. And they wanted to sell it under their own labels. And that’s exactly what happened. Today, Cosmetic Solutions boasts an entire library of unique formulas that cover the full gamut of skin types, even taking into account factors like climate and geography. None of the company’s products are tested on animals, nor do they contain any raw materials from animal sources. In addition, the formulas are available as serums, gels, ointments, foam, creams, masks, cleansers, and other forms to suit a customer’s needs. In 2006, the company, which now boasts 30 full-time employees and another 30 temporary employees during busy times, moved into a custom-built facility in Pompano Beach, Florida. It’s there, in the onsite laboratory, that chemists research and develop products, and quality-control specialists ensure the product is up to par. As Becker points out, that lab is the central focus of Cosmetic Solutions’ current and future success, saying, “It’s where we are innovating new products on a daily basis.” As the recession has forced some sectors into hard times, business at Cosmetic Solutions has actually grown. While it’s true that some competitors have folded, it’s also the case that people are pinching their pennies. And that has been a boon for the company. “While larger-cost, medical cosmetic procedures have slowed down, patients still maintain their skincare regimes,” Mervyn explains. “So they’ve been looking to lessexpensive alternatives to surgery, such as injectables, and to skincare.” [P]

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Invading the Airways If it's manmade and flies in the sky, it’s likely made from Abrams Airborne Manufacturing, Inc.’s sheet-metal products

by Tricia Despres

I

t was 1965, and the hearts and minds of many Americans were on the US Space program. Harold L. “Bud” Abrams was one of those Americans, and he found a way to take his love for aviation and turn it into a profession as a sheet-metal manufacturer. His son, Gary, shared his passion for aviation, and the business became a family affair. “I remember coming home from football practice,

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and Dad would be out there building parts. My mom was handling all the secretarial duties of the business,” Gary explains. “My dad and I shared a love for aviation, and, overall, the business was certainly interesting for my sister and I—and a good learning experience. I remember, after high school, sitting there with my dad, trying to figure out if I wanted to continue on the family business. My dad left it up to me.” He decided to continue the family business, and is now the current president and CEO

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of Abrams Airborne Manufacturing, Inc. These days, Tucson, Arizona-based Abrams Airborne Manufacturing is a precision sheet-metal manufacturer and fabricator of commercial, military, and aerospace assemblies. Whether orbiting the planet on International Space Station Alpha or on board with American troops on naval ships, tanks, and military aircraft, the fruits of Abrams Manufacturing’s labor have made a difference in the history of the United States. Yet, the economic turmoil

of the past few years has had an effect on the family-owned business.

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“In order to survive, it’s always been crucial for us to branch out into a number of different marketplaces through the years,” explains Abrams, who currently oversees 210 employees. “We started off doing a lot of rocket and missile work, and then it eventually developed into the aerospace parts. Years later, we got heavy into computer and Internet controllers. After 9/11,

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MSC Profile Ad_Layout 1 6/24/10 11:26 AM Page 1

we then got more involved in the small-arms industry.“

Notable Products & Services Not only does Abrams Airborne offer various sheet-metal manufacturing, machining, and welding services, it also offers some services that may seem foreign to an industry layperson, including dip brazing, plating, and deburring.

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The company also provides betterknown metal services. Painting, silkscreening, marking, and engraving make up its design specialties while quality control, CAD/CAM, and assembly round out its service offerings.

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Gary Abrams, PRESIDENT As a lifelong pilot, Gary Abrams’ passion for flying and his drive for business enabled him to establish two companies in the field of aviation. He is the president of Pima Aviation, which acts as the long-term lease holder of the Marana Regional Airport, as well as the president of an FBO at Marana Regional Airport, titled Tucson Aeroservice Center. Abrams continues to be an active member in the aviation industry, military, and community through the various businesses. He has inspired youth through flight programs at Tucson Aeroservice Center and Pima Aviation. His other companies, Milkor USA and Vltor Weapon Systems, serve as a voice for Gary’s immense support for the nation’s armed forces.

The company specializes in precision sheetmetal fabrication, CNC machining, aluminum dip brazing, and other related processes. “Diversification is a huge key,” Abrams says. “Back in ’65, it was easy to start up a new business. But these days, small businesses that are dependent on a single product often fail. For us, if one industry is down, another one is up, which has helped greatly. It’s those kinds of layers that help you to survive. It’s also helped having people who can take on many different tasks.” In recent years, sales have been relatively flat at just over $23 million. However, Abrams says he hopes for sales to rise to $28 million this year, thanks to a recent contract with a Marine Corps supplier for a multishot grenade device. “We are currently crunching out the initial deliveries on this,” he explains. “I would love to be out there building things, but I don’t have the luxury of doing that anymore.” With so many companies going out of the country for their manufacturing needs, Abrams hopes his values continue to create a successful business. “I like to say we do business the old fashioned way, and handshakes really do mean something in this company,” he says. “We focus on honesty and integrity. So many companies are moving their stuff to China and Taiwan— the Motorolas of the world are making those sorts of decisions in board-level meetings, which are just outside my scope of doing business. I am the eternal optimist and a gambler at the same time. I always say they can kill you, but they can’t eat you.” On top of the manufacturing business, Abrams also owns his own airport, restaurant, flight school, farm that grows and sells several products, including soybeans, and ranch that breeds cattle and horses. “I am old and tired,” Abrams laughs. “I have two gorgeous boys and a family I never had before. I would love to give all of this to them. I have a lot of cousins and nieces and nephews who are currently part of the company, and, of course, I would love to keep it in the family. Through the years, there have been plenty of opportunities to sell it out, and my father certainly had that option many times, but I always wanted to hang on and leave some sort of legacy.” [P]

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gen(i)us species the evolution of the young entrepreneur

by Shawn Drury

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There was a time, not too long ago, when a young person seeking to earn some extra money opened a lemonade stand or started a newspaper route.

Times have changed.


While it is true that each generation has its pioneers and outliers, the trendsetters among the Millennials have a learning curve and set of expectations that are wholly unique.

N

owadays, young people who start their own businesses often do so with the idea of making a lot more than pocket change. Furthermore, making money and providing a quality product or service is not enough; they want to change the world, too. Such are the ambitions of today’s youngest entrepreneurs, many of whom are Millennials, the moniker given to the generation that came of age as the 20 th century became the 21st. Each generation, whether Baby Boomers or Gen X-ers, has distinctive characteristics that separate it from the ones who came before. Early on, however, experts noticed that the Millennials were distinguishing themselves at earlier ages than their predecessors. While it is true that each generation has its pioneers and outliers, the trendsetters among the Millennials have a learning curve and set of expectations that are wholly unique. Digital Natives The oldest of the Millennials are 29, meaning that they have never known a world that did not have ESPN, MTV, or CNN. They have lived in a digital age their entire lives and have grown used to getting what they want—whether it is sports’ highlights, a music video, or the latest news—on demand. A wide-ranging study released from the Pew Research Center in February 2010 shows that four out of five Millennials sleep with a cell phone at or near their bedsides. It's a given that Millenni-

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als, especially the business leaders among them, expect to be connected 24/7, with the ability to access and distribute all manners of information, preferably by text message or e-mail. Technology and entrepreneurship have always gone hand in hand. Every generation has had its Henry Fords and Bill Gates. However, the newest generation of entrepreneurs views technology as a way to solve the problems of several aspects of a business, from supply chain to customer service. Technology is seen as the starting point for solutions to every imaginable business need. An entrepreneur in 2011 seeks to not only invent the assembly line, as Ford did, but to synergize it with the marketing department. Rob Salkowitz, an author and specialist in nextgeneration workforce and new technology, studied young entrepreneurs for his book Young World Rising. He believes that the approach they have to business is no accident. “When you grow up marinated in digital technology and have seen the power it had on you as an individual, you cannot help but apply that to the business world,” Salkowitz says. “Previously, people looked at business challenges and asked how new technology would fit existing processes. This generation understands the technology first and uses that understanding to inform the way they address the market. They simply don’t see boundaries the way their parents and grandparents did, and a lack of boundaries is very useful in business.”

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Learned Leaders For as much as the Millennials are hard-wired for being wired, the last 10 years have seen an explosion of classes for entrepreneurs at the university level. And it is not just the Ivies or schools like Stanford and Duke that are offering such courses. Salkowitz reports seeing entrepreneurship classes offered at community colleges. Rieva Lesonsky, CEO of GrowBiz Media, has been following Millennials for some time. “Education has been very enabling,” she says. “Even down to the elementary-school level with the scouting programs. This generation has been introduced to entrepreneurship at a very early stage.” Salkowitz concurs, noting that, “In the 1980s, school curricula started to become more collaborative and team-oriented. It’s no surprise that their businesses have so much of a social component.” Jordan Wirsz, however, is critical of the effect of formal programs. He started his first business while still a teen. He later sold an aviation company before turning 20. By 25, he had founded and sold a niche financial firm. He never went to college. “I think education is critical obviously for people who are going into careers where that is necessary,” Wirsz says. “But a lot of people think they need an MBA—and getting one is great, but it does not guarantee success. “I believe in mentorship,” he continues. “Because I benefited from that myself.” Wirsz’s first mentor was an orthodontist who lived down the street from him in Garden Terrace, California. The young Wirsz visited with his neighbor, Dr. Chase, for hours at a time. They talked about building a customer base, hiring personnel, and handling finances and insurance. While that sort of knowledge is certainly available in textbooks, there is something to be said for the personal touch of learning at someone’s knee. Wirsz, who authored Become Incredible in 2010, has continued the example set for him by Dr. Chase, and established mentor programs of his own. Doing Well by Doing Good In addition to technological know-how, the current crop of entrepreneurs distinguishes themselves through their belief that the way they do business can truly make a difference in people’s lives. Wirsz’s mentorship programs are a perfect example. The Millenials have seen the toll that all work and no play can have on lives, and they are undoubtedly inspired by those who came before them. However, they have also seen the downside of single-mindedness on the micro and macro levels. They saw half of their parents’ marriages end in divorce and watched as the environment was rav-

aged. “They kind of feel the older people messed some things up,” Lesonsky explains. Certainly, high divorce rates and environmental peril cannot solely be dropped at the doorstep of the profit motive, but to some Millennials, there is a correlation. So, many of them are putting off marriage until their professional lives are in order. They are far more interested in global issues and the impact that business has on the environment than Generation X or the Baby Boomers. “This generation of entrepreneurs believes they can and will institute social change.” Lesonsky says. Short on Funds, Long on Inspiration The past few years have proved formidable to even the most experienced businessperson, and starting a business in the recent economic climate was hardly an enviable task. Salkowitz believes that many entrepreneurs became business owners when they could not get the type of job they were hoping for upon college graduation; or, they could not get a job at all—which is perfectly normal for those who are inexperienced in a workforce with double-digit unemployment. Once they did decide to fend for themselves, they discovered it was remarkably easy to get started. “It really is true that all you need is a computer, an idea, and a good work ethic,” Wirsz says. However, even the smallest companies need some capital, and when banks are being stingier than usual, young entrepreneurs can find themselves left out in the cold. “These are hard times for financing, that’s for sure,” Lesonsky says. “But I think there is a fair amount of peer lending going on.” In some cases, however, even one’s peers cannot be counted on for help. That is when some ingenuity is required. The owners of Duto, a company based in the mountains of Colombia which Salkowitz featured in Young World Rising, are a prime example. Three college students created a process that allows visually impaired students to read through touch-screen technology. They took their fundraising efforts global and won contests sponsored by the Inter-American Development Bank and TICAmericas, among others. The entrepreneurs at Duto are the quintessential 21st century company: young, socially conscious, global in reach, but commercial in their approach to the market. Old Values, New Means In some respect, times may not have changed as much as some people think; lemonade is still a popular drink. But if a young person were to start selling it, their potential customers would reach around the world instead of just around the corner. And as far as newspaper routes go? Alerts via text-message are preferred.

The Millenials have seen the toll that all work and no play can have on lives, and they are undoubtedly inspired by those who came before them. However, they have also seen the downside of single-mindedness on the micro and macro levels. They saw half of their parents’ marriages end in divorce and watched as the environment was ravaged.

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The Artist's T-shirt Shop Jake Nickell of Threadless.com As told to Chris Allsop

Name, Title: Jake Nickell, Founder & CSO Age: 29 Company: Skinnycorp, parent company of Threadless.com Industry: Arts & Retail Founded: 2000 T-shirts sold: "Millions" Originally, Threadless.com wasn’t intended to make money. I was at school studying web design, doing some web developing on the side. It all started on Dreamless, an online art forum where I was a very active participant, posting designs and collaborating with the other members. There was a T-shirt competition held on Dreamless; I entered, won, and thought that this is something that should always be happening. About an hour later, I posted a new thread on Dreamless asking for designs to be posted, and we’d print the best onto T-shirts and send them to people who want them. After we printed our first six designs or so, we decided to set up a whole separate website for the project in spring of 2001, and started allowing people to submit designs directly to that site. But it was still a side project; although, by that time, I had set up a bank account for all of the earnings, which were then put back into printing more T-shirts and to further the project in other areas. I quit my job after about two years in, in summer 2003, when it came to a point where I needed to put more time than I had into Threadless to keep it running. That’s when it became a business. Crowdsourcing is a term first coined by Jeff Howe of Wired magazine. We were identified as a leading exponent of this model after being invited to speak about Threadless at MIT in 2004. It essentially involves outsourcing certain elements of a business to a community, such as taking user submissions and printing the best ones, as we do. We had some accounting and legal issues early on. We didn’t keep the accounts properly, and ended up owing FedEx $50,000 when we were only bringing in $120,000 a year. Also, competitions are a legal minefield. We’ve got it all sorted out now. My relative youth didn’t cause too many problems starting the company. Our current screen printer, who prints all of our tees, wouldn’t have anything to do with us early on. That may have been the youth, or may have been because we were just too small-fry. Now that I’m a little older, it’s no trouble, but when I was 21, it was a little harder to establish credibility. We have to keep listening to our community, and be able to change our direction based on what the community wants. The plan is to make sure we don’t get wrapped up in a plan, as we live and die by our community. If all the artists stop sending designs in, then we’re dead, so we want to make sure that we’re growing the way our community wants us to grow, to make them happy. I have no plans to leave. It’s been 10 years, and I think it can be hard for founders to stick with companies they started. But I’m now focused on maintaining our smallness in our increasingly large company. When you’re less than 30 people, everyone gets it, and you don’t really have to do anything to preserve the culture. But now we’re at this size where new people come in and they have no idea what Threadless is about. So I see my role now as keeping that culture intact, and I’m learning a lot and finding it really fun. I’ve just read Delivering Happiness by Tony Hsieh, and Drive by Dan Pink. My motivation, and what I’m excited about, is in continuing to learn new things, work towards a purpose, and I’m able to do that here by learning about how to grow a company.

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" I think of myself as

an entrepreneur now, but in the beginning I was a hobbyist. Today, I think about Threadless from an entrepreneurial, business perspective.�

by / IN THE HANDS OF THE CONSUMER: Threadless' T-

shirts (modeled above) feature designs from artists around the world, with new apparel released for purchase every week.

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A Digital Recipe for the Traditional Bake Sale Emily Dubner of Baking for Good As told to Tricia Despres

Name, Title: Emily Dubner, Founder & CEO Age: 26 Company: Baking for Good Industry: Online, all-natural baked-goods sales Founded: September 2009 Projected 2010 donations (15% of each purchase): $20,000+ I remember making these very intricate sugar cookies to share with my second-grade class on my birthday. I was hoping that they would make some sort of lasting impression on my classmates. Even as a little kid, the kitchen has always been the safest place for me—a relaxing place where nothing could go wrong, where I could follow an exact recipe and things would turn out okay. I have always been one of those people who loves the exact process of a recipe, while my mom is much more natural and doesn’t feel the need to measure everything (in both the kitchen and in life). In school, I always had my eye on modest but worthwhile business ideas. Whether it was selling tote bags on campus or handing out handmade friendship bracelets, I was always out there finding ways to raise money for a variety of school organizations. Even when I went off to Harvard to pursue a degree in social studies along with a citation in Mandarin Chinese, I kept right on baking. After I graduated and started working in New York City, I was still looking for ways to translate my passions into a business. Two years ago, I ended up leaving my job as a management consultant for Katzenbach Partners in New York to pursue my dreams right from my cozy Manhattan kitchen. I always focused on the fundraising concept of my idea. I began to visualize a fundraising baked-goods sale of sorts, and how that would translate online. At the same time, I began testing different recipes and started focusing more on gift giving and how that could be tied to fundraising. After much hard work, Baking for Good officially debuted in September 2009. Oftentimes, people want to connect to a charity that they can really relate to. For example, if someone recently passed away from cancer, a customer will connect her purchase to benefit the American Cancer Society. We have also had a number of pet owners connect to the ASPCA. I hope to connect with more educational institutions in the future, along with more corporate entities that can co-brand with our company to do more events together and therefore reach a larger audience. All along the way, there have been milestones and challenges. I remember when we had only been up and running for a few days, and [online style guide] Daily Candy picked us up. Before we knew it, we were getting orders from all across the country. It was a bit overwhelming at the time, but it was this sort of social marketing and word of mouth that helped us get more repeat customers. I don’t personally bake as much anymore, but I do enjoy interacting with our customers via social media. They have so many wonderful ideas that will only help us expand and grow into the future.

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" Even when I went off to Harvard to pursue a degree in social studies along with a citation in Mandarin Chinese, I kept right on baking.�

THE POWER OF SUGAR: Baking for Good adds a little extra

something to each sweet treat it sells by donating 15 percent of each purchase to the charity of your choice.

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Off the Cuff

Tom Patterson of Tommy John As told to Sheena Harrison

Name, Title: Tom Patterson, Founder & CEO Age: 31 Company: Tommy John, based in Los Angeles Industry: Men's underwear & apparel Founded: 2005 Projected 2010 sales: $2 million+ I worked in medical-device sales for seven years before starting Tommy John. One day, I had to do a presentation at a hospital. When I got out of my car, my undershirt had ridden up and it had already come untucked. That's kind of when the light bulb went off. I thought maybe there's a better way to make men's undershirts. I went to the garment district in Los Angeles, and I spent $100 on fabric that didn't shrink and was lightweight, breathable, and soft. It solved all of my problems with current undershirts on the market that shrink, turn yellow quickly, and have tags. I took my sketch to a tailor at a local dry cleaner, who actually sewed the prototypes together. I sent 15 shirts to some friends to test the market, and they called me a week later to ask for more. From there, I used my personal savings to make 200 more shirts, and I sold those in about a week. I used those profits to make 500 more shirts and start Tommy John's website. I had lawn-mowing businesses from the time I was eight years old through the end of high school, and I always liked owning my own business. My philosophy after I graduated from college was that I wanted to work for a Fortune 500 company so I could use that skill set to start my own company. I always felt some idea for a business would come to me, even though men's underwear is the last thing I thought I would ever get into. About six months after starting Tommy John, I was laid off of my medical-device job during the 2008 financial crisis. Every one was telling me to play it safe by getting a new job so I could have a 401(k) and have some stability, but I did the opposite. I cashed out my 401(k), and I ran up my credit cards. I wanted to give Tommy John 100 percent of my efforts, because I didn't want to be a “coulda, woulda, shoulda” guy 20 years from now. It was a great time to take a risk, so I kind of put all the chips on the table and took a gamble. Our biggest retailers are Neiman Marcus and Nordstrom, which are two of the most prestigious department stores in the United States. Those buyers field anywhere from 20–50 phone calls a week from different brands trying to pitch their products, and it can take six or seven years for most brands to get in. So it was really exciting for Tommy John to be placed in their stores after less than a year in business. We feel very blessed to be in the position we're in right now. Tommy John is sold through our website and at about 130 retailers nationwide. We're relocating to New York City, and we're going to hire three or four more employees who have apparel experience to support our strategic growth. We're in the position now where we need to hire and recruit the best talent. So we feel New York is where we need to go to compete with the bigger brands and come out with new, innovative products for the men's underwear category.

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" I had lawn-mowing

businesses from the time I was eight years old through the end of high school, and I always liked owning my own business.�

STUCK ON YOU: Tommy John sells underwear and undershirts equipped

with Tailored Stretch Technology™, including stretchy fabric, longer lengths, and tailored structures that contour to your torso and lower body.

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Trigger-Happy Movie Marketing Jason Yim of Trigger As told to Zach Baliva

Name, Title: Jason Yim, President & Creative Director Age: 37 Company: Trigger Industry: Digital Marketing Founded: 2005 2009 Sales: $5 million Employees: 65 I graduated from UCLA in 1995 as a graphic-design major and started a little company with four friends. We worked in an apartment and landed a first job creating screen savers for Independence Day. We eventually did a web campaign for Chain Reaction. Even in the mid ’90s, it was interactive— we were trying to engage people from day one with campaigns that featured game components. I left that company in 2005 to start Trigger. We are a digital-marketing agency that’s 90-percent focused on films. We have 65 employees split between offices in Los Angeles and Shanghai. Basically, we handle domestic and international marketing for big summer blockbusters with services ranging from typical websites in 13 languages to Flashbased online games, social-media campaigns, and smartphone and tablet apps. We do a lot in-house with internal 3-D artists, iPhone programmers, etc. That’s rare for a creative shop. We also do Augmented Reality stuff, where someone can take a graphic on a Red Bull box and hold it up to a webcam to initiate an interactive experience where we make it look like a hologram or something. Our goal there is to draw a user who is not into the digital world, into the digital world. From there, we take them to a website that has relevant information. We tie this into Facebook with published scores or by pulling users’ photos to totally personalize the experience. New trends will be location based and more Augmented Reality. We’re approaching full-circle digital marketing, where people can receive texts and content on their phones while they’re in a theater. Maybe they can hold their phones in front of a movie poster, and their cameras will recognize the poster. Marketing continues from there so they receive ammo to use in a game, or a 3-D character steps out from the picture and into their phone. This is all in the very near future. I’ve worked with a lot of our core team for a very long time so we’ve built trust. I was taught that to win more business, you just need to be more creative than the next guy; however, that is a smaller truth than you’d expect. Clients want more—they want an ongoing relationship with someone who can deliver consistency. Any agency can do a website; as soon as there is another component involved, then we are on a much shorter list because of our technical strength and reliability. Spiderman has always been a favorite. We did the official sites for the first two movies at our previous company and the third here at Trigger. Now we’re doing an Evil Dead iPhone game with Sam Raimi, the director of the trilogy, and Ghost House. More recently, we did District 9, which involved an alternate-reality game, Augmented Reality, and an online game. It used the full scope of our creative abilities, and the digital campaign won a Webbie award. We have a program called Trigger Change, which is our charity component. It’s really been a big driver for our success because our whole company participates. If we’re financially successful, they know where their money is going, besides in our pockets. Over the past five years, we’ve funded seven international construction projects that help communities and wildlife in less-fortunate countries. We look forward to the end of the fiscal year when we can look and see how much cash we’ve squirreled away to be investing in something a bit more lasting than just marketing. [P]

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"I was taught that to win more business, you just needed to be more creative than the next guy; however, that is a smaller truth than you’d expect. Clients want more."

AUGMENTED REALITY: Trigger's digital-marketing campaigns

feature interactive websites and Augmented Reality experiences for blockbusters like District 9 and The Karate Kid.

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When to Shut Up, Shake Hands, and Chill Out In the Global Market by Kelly Matlock Suppressing the on-the-go, high-speed culture ingrained in most American executives is a monumental task for those doing business abroad—but the rewards are only as limited as your passport

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HELLO!

PHONETIC PRONUNCIATION

MARRHHABA!

( mahrr-hhah-bah ) ARABIC

NAMASTE!

( nah-mass-tay ) HINDI

“Entice the tiger to leave its mountain lair.” This old Chinese proverb could greatly relieve a sweating American executive’s anxiety while he sits in a room full of clients in Beijing hoping to close a long anticipated deal—if only he knew it. “If a person is the tiger, you have to get them out of their comfort zone,” explains Handel Jones, founder, owner, and CEO of International Business Strategies Inc., a market and strategyconsulting and analysis company in Los Gatos, California. “Quite often, you don’t know who the tiger is. Younger [Chinese employees] will speak, but they don’t have any decision-making power.” So while the American salesman may be spewing his pitch in rapid fire to the young, outspoken Chinese men and women in the group, the Chinese man in the back scratching his chin and remaining silent may be the one deciding whether or not to sign on the dotted line. Most likely, his silence is intentional. “This is to protect themselves so they don’t get into a discussion where they have to commit,” says Jones, who also authored the recently published book CHINAMERICA. It’s tips like these that prove crucial for Americans doing business overseas. It’s not just a matter of geography and language—you’re entering into an entirely different culture.

Shut Up and Listen Since silence is golden in Asian culture, people will rarely interrupt their colleagues and clients. “[Asian business execs] find it disquieting when we fill up air space,” explains Terri Morrison, author of the book Kiss, Bow or Shake Hands: The Bestselling Guide to Doing Business in More Than 60 Countries. “In the United States, if 10 or 15 seconds go by, it feels like an eternity. But in China or Japan, silence can be a form of respect; it shows they’re listening. The worst things the US exec can do is assume the translation wasn’t right, lower the price, or repeat what he said.” Silence can also be a negotiation tactic in Asia, since Asians are aware that many Americans are uncomfortable with silence. “The American

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manager—uncomfortable with the silence— thinks he needs to lower the price, so he lowers it $100,000. But the Japanese know this, and they use it to their advantage,” Jerry Vastano, a Connecticut-based consultant for Itim International Culture & Management Consultancy, explains. Sometimes, patience pays off. Many cultures don’t expect to get everything accomplished in one meeting. Jones notes that in China, the first meeting should be getting to know you to see if they want to work with you. With such different goals, initial meetings can quickly go awry when one becomes rushed. Written communications and phone calls from one country to another can also create communication gaps. “America is a low-context culture, and we are very terse and telegraphic, but in a high-context culture, there are more than words. There is context, there are relationships and body gestures,” he continues. The low-context American manager—when communicating with a person from a high-context culture—should ask open-ended questions like “What would happen if we ran a test next week?” and then reply with something like, “It sounds like you need more time; would it be helpful to have 10 more days?” People in high-context cultures tend not to give direct verbal responses— their answers are non-verbally coded. How people approach tasks in collective societies like Latin America, Asia, and India, versus individualistic societies like the United States and the United Kingdom, may also influence the outcome of business meetings. “The English language is the only language where ‘I’ is capitalized and is used as a pronoun. In India and China, people say ‘we,’” Vastano says.

Recognize Your Role And though every country—and company, for that matter—has some sort of hierarchy in place, the higher value of hierarchies and respect for authority in countries like China and Japan may be explained by delving into Asian history. This may also be why managers in Asian cultures must al-

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"Some people in [India] are rich, some are extremely rich, but they treat you like you are the most important person in the world.” —Fede Teran

Destination: Middle East & India Fede Teran CEO of FEDE DESIGN What he does: Graphic design, advertising, marketing, and interior design, specializing in high-end condos and million-dollar homes

His home base: Miami, FL Languages he speaks: Spanish, English, some French His business reach: The Bahamas, Mexico, Venezuela, Colombia, Morocco,

Dubai, and India

His slogan: Why live simple when you can live fantastic? What he knows about working in India: Fede Teran recently took a business trip to India to visit clients in New Delhi, for whom he is designing the interior of a 15,000-square-foot home. “It was a challenge for me because I had to learn the culture and what types of things they wanted, what types of colors, because they are religious,” Teran explains. “They didn’t want a typical home. They wanted modern and contemporary but with Indian feeling. I had to learn their fabrics and textures. I met with many suppliers so we could recreate our vision.” Although Teran went to New Delhi on business, he had the time of his life. “It was amazing,” he says. “This Indian family was extremely welcoming. They also have a house in Miami and friends of theirs referred them to me. From the first time we met, we automatically clicked.” In addition to observing how friendly and hospitable his clients were, Teran also noticed something else about the people of India—they were all very happy. “Everyone is smiling. It’s so incredible,” he recalls. “They are smiling whether they have money or not. Some people in the country are rich, some are extremely rich, but they treat you like you are the most important person in the world.” In addition to staying positive and open-minded like those he encountered in India, Teran advises American execs to keep the lines of communication open. “Our company has very good lines of communication [with our international clients]. If you don’t communicate well, something will not turn out properly.” In fact, the company frequently sends its clients updates via e-mail with 3-D images of what they have designed for the project, displaying the furniture, accessories, and curtains. “We make it 3-D so the client or architect overseas can see exactly how the finished product will look, and it is 99 percent accurate in how it will actually look in the end,” Teran says.

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Shut Up, Shake Hands, Chill Out

SPAIN DO opt for a face-to-face meeting over a phone call or fax for initial communication. DON’T make dinner reservations until after 9 p.m. for business associates. Source: international-business-center.com

MEXICO DO begin a meeting with small talk, particularly about family. Other safe topics: weather and Mexican landscapes. DON’T be offended by tardiness. Time is flexible in Mexico. Source: Mexperience

CHILE DO exchange business cards right off the bat. DON’T pour wine with your left hand. Wines, especially white wines, are a national treasure. Source: international-business-center.com

SOUTH AFRICA DO feel free to hold business meetings over lunch or dinner in a good restaurant. DON’T make appointments before 9 a.m. Source: international-business-center.com

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CHINA & JAPAN DO allow 10–15 second pauses in the conversation. DON’T try to fill the silence—it’s a negotiation tactic in many Asian countries.

ABU DHABI DO remember that many Muslims avoid alcohol and pork. DON’T show the soles of your feet or shoes or make a gesture with one finger pointing up. It’s considered rude. Source: Bayt.com, Inc.

AUSTRALIA DO make eye contact. DON’T stand any closer than an arm’s length away from the person you’re talking to. Source: Associated Content, Inc.

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HELLO!

PHONETIC PRONUNCIATION

JOU SAHN!

( joh sahn )

CHINA/Cantonese

NI HAO!

( nee how )

CHINA/Mandarin

ways have an answer and never rely on their subordinates for answers. “In the United States, we are very open to interaction and interdependency with managers,” Vastano explains. “Managers come to us and ask for opinions and vice versa; however, in high-power distance cultures with more hierarchy, the manager will lose credibility by saying, ‘I don’t know; I’ll get back to you.’” The importance of business titles and hierarchy for Asian cultures is also reflected by where and how people sit in meetings—they oftentimes plan ahead to associate placement with position of power.

Value First Impressions Since presentation weighs so heavily, American execs should dress the part when traveling. “You have to look your level in high-power distance cultures like China, France, and Belgium,” Vastano explains. “The last thing an American manager should do is show up wearing Dockers, pulling out a Holiday Inn pen. They should have the dark suit, Louis Vuitton bag, and the expensive watch. Look your role to be credible.” American execs should also be aware of how they introduce themselves and how they address their clients. In Germany, it’s customary to use the person’s title and last name, not the first name, during business transactions. And Morrison notes that the same goes for the American; don’t introduce yourself with just your first name. When greeted at the airport or at an office in a foreign city, Americans may be caught off guard by the unique greetings in each region of the world. Greetings received in the Middle East may be quite different. “[An observant Muslim will not necessarily] touch the opposite gender. So if you go to the Middle East, and they don’t shake hands, they may be observant Muslims, or, in Israel, Orthodox Jews. Ask your associates before you arrive,” Morrison advises.

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trips than Americans. “In a collective culture [like Abu Dhabi], people do business with people, so the relationship is more important than the task,” Vastano explains. Because of this, he says, it’s common for a client in Abu Dhabi to meet the American at the airport and tell him he has a game of golf planned followed by a spa appointment followed by a lavish dinner. “The American freaks out and needs to talk about the contract, and the [client] says he’ll get to it,” Vastano says. “Individualistic societies like the United States and Canada want to focus on the task first. The deal is ratified and then they’re out of there.” However, 80 percent of the world has a collective culture, whereas only 20 percent is individualistic and task-oriented, like the United States. “Many multinational firms in America are trying to do business with a world that is very hierarchical, collective, and high on uncertainty avoidance,” Vastano says. Understanding uncertainty avoidance is key for sales and marketing managers trying to expand their global presence, since cultures with low uncertainty avoidance are more likely to jump on a venture that carries a lot of risk, while a country with high uncertainty avoidance requires thorough planning and research before deciding to invest or do business with anyone. The psychology of advertising in a high-uncertainty culture is also different than in the United States. “Toothpaste [in a high uncertainty culture] is sold in commercials by a man in a white lab coat explaining toothpaste ingredients and why it’s important. It is very empirical. While in the United States, a low-uncertainty-avoidance culture, Colgate Total is advertised by someone [with] a bright white smile because it makes him attractive,” Vastano explains. Because of this, the American or British manager going to do business in a high-uncertainty-avoidance culture needs to have empirical proof and evidence.

Know When To Chill Out

Do Your Homework

In addition to unique greetings, Middle Easterners may also have different agendas for business

It’s important for American executives to understand these cultural differences when doing

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products & services

Destination: China Norbert Sporns CEO of HQ Sustainable

What he does: Runs an aquaculture operation with operations in China that sustainably harvest farm-raised tilapia

His end product: Lillian’s Healthy Gourmet, a gluten-free, low-sodium, organic meal complete with lean tilapia, sauces, vegetables, and pasta

How long he’s been working in China: 10 years His home base: Seattle, WA His business reach: China

"Shangai airport is inundated with taxi drivers, and, at times, there was no one there to greet me except complete strangers.” —Norbert Sporns

What he’s learned about doing business in China: Norbert Sporns feels China is all about the “eating and toasting and greetings as if you’re intimate or long-term friends—then you slowly begin a business relationship.” Because of this, gift-giving, especially in business situations, is common. One gift that stands out to Sporns in the traditional mooncake. “There is an annual mooncake festival, and it’s been a tradition for hundreds of years. They are these expensive little cakes in beautiful containers. It’s very common to reach out to business associates and give them.” Although, Sporns admits he can’t always finish them. “When you’ve eaten one or two, you’ve had enough,” he explains. “When you get 100, you don’t know what do with them all.” Aside from the greetings and pleasantries, Sporns says a common mistake American executives make when doing business in China is feeling overly confident when walking away from meetings. “Often, when they say, ‘Yes, I understand,’ it doesn’t mean they agree, it means they understand,” he explains. Some business travelers may also be overwhelmed when they first arrive at the airport in China. “Shanghai airport is inundated with taxi drivers, and, at times, there was no one there to greet me except complete strangers,” Sporns explains. When first doing business in China, Sporns also experienced roadblocks to licensing and business approvals. He recalls, “You are very conscious of the role government plays in everything you do [in China]. There was more licensing and more government approvals involved when [the company] first incorporated. There was a feasibility study, proof of capital investment was required, and [there were also] corporate laws applicable at the time, but things have changed. They are less interventionist now.” Another governmental challenge has been dealing with unexpected legislative changes over the years. “The legislative changes have a huge impact on your business and are unannounced and don’t involve draft legislation; there is no advance warning,” he says. “I remember when we used to have two currencies: one for foreigners coming to China, the FEC, and the regular RMB. Foreigners could only pay with FEC, and there was a different exchange rate. Overnight, it was abolished; so if you were holding FEC, you had two weeks to get rid of them. And you were suddenly holding RMB, but all your accounts were in FEC. It became a huge challenge.” Although Sporns understands that censorship and policies are a problem for many foreign businesses trying to expand to China, he says looking at the bigger picture emphasizes what the Chinese government has accomplished. “Have healthy skepticism, and be critical without being antagonistic,” he advises. “[The US] system has not been an easy one either, and there have been many steps along the way. We forget that it’s not black and white. It’s a continuum of progress.”

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KONNICHIWA! ( ko-nee-chee-wah )

GOD DAG! ( goo dah )

ZDRAVSTVUYTE! ( zdrah-stvwee-tchyeh )

JAMBO! ( jahm-bo )

HALLO! ( ha loh )

business overseas. Many times, execs traveling abroad for business will check the weather report so they know what to pack, but they don’t take time to study the area’s culture or language. This is a big mistake. As Vastano explains, Americans need to practice what are called “soft factors,” like interpersonal effectiveness and active listening. “While properly managing diversity is a key factor in getting things done effectively on a global basis, companies are usually more adept at managing the various financial, legal, and logistical considerations—the ‘hard’ factors—when conducting business outside of their borders,” he says. “However, it is often the softer cultural factors that can thwart, impede, or lead to the failure of international ventures,

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alliances, or other cross-border projects and business propositions.” No matter how much an exec studies a culture’s values, it may take a few business trips to gain the knowledge and insight needed, as there is really no substitute for experience. Still, it’s imperative to constantly be aware of cultural differences that may affect behaviors during business interactions. “All of us have this indelible pattern of behaviors that has been programmed into us for the first 10–12 years of our lives, and we say, ‘My way is the only way,’” Vastano explains. “But the fierce tiger is inferior to the local worm. Be aware of cultural dimensions and use them as a tool to understand how a culture may operate.” [P]

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JAPANESE

NETHERLANDS/ DUTCH

SWEDISH

AFRICA/ SWAHILI

RUSSIAN

products & services

Destination: Latin and South America Monique Skruzny Cofounder & Partner of MBS Value Partners What she does: Heads a capital-markets advisory firm How long she’s been doing business overseas: Since 1987 Her business reach: Every major country in Latin America Select clients abroad: Gafisa, a low- to high-income homebuilder that is the only

Brazilian real-estate company traded on the New York Stock Exchange; OGX, Brazil’s largest private-sector oil and gas company

Languages she speaks: Spanish, Portuguese, English What she learned about working in Latin America: Monique Skruzny’s years of experience traveling and living in Latin America help her in her business interactions. “I’ve done my homework,” she says. “I speak Spanish and Portuguese, I’m passionate about Latin America, and I incorporate it into not only my business but my philanthropy. I sit on the board of a leading Latin American microfinance organization, Pro Mujer, and I am committed to reducing poverty and improving overall development of the region and learning the languages.” While Skruzny says that it is important to understand South and Latin American business preferences, she gives the Brazilians credit for their ability to adapt to other cultures when doing business. “What I have found to be wonderful in terms of working with Brazilians is they are very open minded,” she says. “The expectation for a meeting [in the United States] is that if you have half an hour, I want to know in the first two minutes why I should pay attention to you for the remaining 28 minutes, and I need four reasons why I should invest in your company, which should be on slide one or two. In Brazil, that may be on page 10, but Brazilians are very aware that they need to adapt.” Skruzny advises other American executives to show an interest in the culture when doing business in Latin America. “People that are most successful doing business here are the ones who have demonstrated interest in the country and language. Even if you bother to learn ‘Good morning.’ Everybody speaks English in Brazil, but that little nugget is important. [It’s about] understanding things about their culture and things that are important to them.”

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strategy

STRATEGY 66 FUSION systems 68 OPTIMUM ENERGY 70 UEC ELECTRONICS, LLC

Craig Zoberis of Fusion Systems on…

Investing in your workforce by Kelly Matlock

looking ahead... "One of our long-term goals is to help educate the younger generation now preparing to enter the workforce," Zoberis says. "Many young people have been influenced away from choosing careers in manufacturing and engineering due to the media’s inaccurate portrayal of manufacturing as a dying industry. There are so many talented young people coming to the age where they need to start making choices about their future, and we want to show them the opportunities that exist in manufacturing. We want to change people’s perceptions and get them excited about the industry again."

I

t’s hard to believe that Craig Zoberis, president of Illinois-based manufacturer Fusion Systems, started his company out of his own garage less than 10 years ago. Back then, he and his wife had some heated debates about joining forces with a prospective partner to get Fusion off the ground. Zoberis explains, “We had some pretty insane conversations almost every day for months until I finally realized what she was trying to tell me: I could do it on my own.” He finally complied and launched the company by himself; a decision he never regretted. Zoberis’ wife gave wise advice, considering Fusion saw a 691-percent increase in revenue, from $670,534 in 2005 to $5.3 million in 2008. Still, Zoberis is impressively humble as he talks about how far he’s come. Fusion is a low-volume, domestic contract manufacturer that works with original equipment manufacturers (OEMs) who are frustrated with rising costs of internal work but cannot afford to outsource overseas. One

of the company’s current projects: a foot scanner for podiatrists. “Normally, you’d see a podiatrist, step your foot in a mold, they’d take an impression, and then the mold would be sent to a factory in Central Illinois,” Zoberis explains. “Now, podiatrists will be able to scan a patient’s foot in the office and it takes days instead of weeks.” The company‘s handpicked workforce, hired mainly from within and through referrals, is responsible for final products like these. “Focus on the ‘who’ not the ‘what,’” Zoberis explains, “because the ‘what’ is always going to change. The ‘who’s’ will be able to adapt to the changes. As long as I have the right people, it doesn’t matter what we do. We’ll always be successful.” Zoberis also puts a lot of stock in continuous learning. “Not just academic,” explains Zoberis, who received a bachelor’s degree in mechanical

Industry Pulse

"The media has long portrayed manufacturing in the United States as a dying industry, which isn’t true. The demand for domestic manufacturing is on the rise, and, unfortunately, we are having a hard time finding young technical talent to fill open positions as members of the older generation near retirement," Zoberis says. "The media has influenced the younger generation now entering the workforce away from careers in engineering and manufacturing, which is going to be very troublesome for our industry in the near future."

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Goal Setter: President Craig Zoberis facilitates teamwork by sharing Fuson's BHAGs—Big, Hairy, Audacious Goals—with all employees.

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Fusion saw a 691-percent increase in revenue, from $670,534 in 2005 to $5.3 million in 2008. Still, Zoberis is impressively humble as he talks about how far he’s come.

Panasonic Electric Works - Your Partner for Automation Solutions

Panasonic Electric Works Corporation of America Automation Control Systems Division http://pewa.panasonic.com/acsd 1.800.228.2350

engineering and a master’s in business. “There’s a business philosopher, Jim Rohn, who said, ‘A formal education will make you a living, but self education will make you a fortune.’…I grew up working in my father’s business [in high school and college], and I don’t think I’d have the confidence I do today as a business owner if I hadn’t.” Because that apprenticeship proved so valuable for Zoberis, he offers employees similar opportunities. After attending seminars and lectures held by business leaders, he passes the “CliffsNotes” versions on to his key people at Fusion. Zoberis also mentors other entrepreneurs with businesses making more than $250,000 but less than $1 million through a program called The Accelerator— sponsored by the Entrepreneurs Organization. Although Zoberis helps others achieve their business goals, Fusion still has lofty goals of its own, which the employees call BHAGs (Big Hairy Audacious Goals)—they post them on 11" x 17" sheets of paper in their cubicles along with their core values, beliefs, and purposes. “Our people know what we do, but it’s why we do it that they lose touch of,” Zoberis says. The BHAGs remind them. One of its top BHAGs: a system to show clients the progress they are making on a project. “A lot of contract manufacturers don’t want people in their facilities until there’s a finished product,” Zoberis says. “We don’t believe that’s the best way of doing business.” Thus, the company has created transparency in an industry where there is little. Fusion also implemented an Open Book Pricing Program, where it provides the client all costs and margins in a comprehensive pricing report. “It’s kind of cheesy, but when I named our company Fusion, I was referring to the idea of fusing our manufacturing processes with our customers,’” Zoberis explains. “But if we don’t disclose this, we’re not really fusing…until you disclose how much you make off your partner, you’re not in a true partnership.” The company’s other BHAGs? To increase the number of products it’s building. Oh, and to reach $7.1 million in revenue by the end of the year, Zoberis says. No biggie. [P]

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Nathan Rothman of Optimum Energy on…

Advancing the HVAC industry

by Chris Allsop

looking ahead... "We have timelines in place to develop five additional products over the next couple of years," Rothman says. "Our offering is staying focused on HVAC and enabling clients to turn their HVAC cost from a fixed to a managed expense. We hope to become the standard of operation, and view ourselves as the innovators and enablers in this industry."

N

athan Rothman, CEO of Optimum Energy, describes himself as a “serial entrepreneur.” His latest venture, which is revolutionizing how HVAC systems work within commercial properties, follows experience in such varied areas as sailing, retail, and process manufacturing. The idea for Optimum Energy came out of the latter. “Process manufacturing is very competitive, and every penny counts,” Rothman says. “So I’ve always been interested in energy and efficiency.” While developing a leather tannery that needed to be entirely cooled for Nike in Thailand in 2004, a new technology caught Rothman’s eye. Developed by Tom Hartman, a stalwart of the commercial HVAC industry who had consistently beat the drum for a more efficient method of HVAC control, the technology was what Rothman needed. He convinced Hartman to license the technology to him, and Optimum Energy was born in 2005. The fledgling company was immediately faced with an uphill battle. The industry it was entering was traditionalist rather than innovative, and had been using the same design, build, and control processes for 40 years. This involved proprietary control code being written for each individual HVAC system. Controls were designed to turn

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the HVAC system on and off based on predetermined parameters. Optimum Energy’s offering was different. “First off, this is a radical technology for the market,” Rothman says. “It’s not about turning it on or off, it’s about running it slowly all the time. Second, instead of writing code every time—a process that can take two to three months—we made it plug and play.” At this stage, Optimum Energy was not receiving much publicity; the company was, as Rothman puts it, “just four people up in Seattle.” In order to push the acceptance of this new operating procedure and delivery approach, Rothman’s initial marketing strategy was to locate a couple of key accounts that had the cache to convince the marketplace. “We went after these key accounts and got them,” Rothman says. “First, it was the City of San Diego and a couple of biotech firms that are based there. Then, a project for Qualcomm and the Irvine Company.” Now, Optimum Energy is 75 customers and growing. These include hospitals, universities, airports, and convention centers, among other vertical markets, and buildings averaging 100,000 square feet and higher. Rothman reports

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Industry Pulse

"Everybody wants to be green. It’s a wonderful trend, and we’re now seeing this systemic change in how we operate buildings," Rothman says. "There’s new legislation all over the country, but business is business and ROI is everything. America’s innovative spirit is kicking in, innovation is everywhere, and solutions are being found."

that the company is also developing products for smaller buildings. “Our focus is very customer oriented, and one of our key concerns is that every customer is satisfied,” Rothman says. To this end, Optimum Energy has a policy where clients cannot purchase the company’s product unless they allow it to measure and verify its progress over a 12-month period. “I come from manufacturing where you measure everything all of the time,” Rothman says. “In this industry, they looked at the system occasionally, but as long as there were no complaints, it was left alone. But I asked: are we operating as efficiently as we can be? And if we aren’t measuring it continually, how can we know?” Hence, Rothman created Optimum Measurement, Verification, and Management (MVM), which allows clients to have their system efficiency measured over the Web in real time. Rothman’s company converts all the data into graphs and charts and makes it simple to analyze specific problems, allowing them to react quickly when there’s a problem. Optimum MVM is also intended to take away the need for unnecessary scheduled maintenance, as the system identifies problems as they happen.

AMBITIOUS DESIGN WITH AN EYE FOR RESULTS McBreen Design is a branding and design agency, specializing in helping companies find their voice with a highly collaborative visual approach to creating and sustaining a cohesive brand strategy. Working across all media, we create visual solutions that inspire and engage.

“Coming from New York City, my wife jokes that I don’t know the difference between a telephone pole or a tree,” Rothman says, “but I’ve always had an interest in sustainability and the environment, and it’s great to be able to play a part.” [P] a message from mcbreen design McBreen Design is a full-service branding and design agency. Working across all media, we have experience creating strategic forms of design for websites, collateral, advertising, and logo ID. We’ve developed many solid working relationships with valued clients, such as Optimum Energy, and are proud to be one of their preferred vendors.

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Pursuing excellence by design...

Philip Ufkes of UEC Electronics, LLC on…

Treating engineering design and manufacturing like baseball by Sally Deering

• system integration looking ahead... • building automation The Upper Room, Inc. has future • combustion control plans that include an international • industrial automation center for spirituality, which will draw together people from + much more around the world. It also recently launched a new book series for church leaders, aimed at helping pastors and other leaders become more effective spiritual guides for those in Controlco’s Professional Services their care. “We are also continually beginning new Emmaus communiTeam provides a host of solutions ties in various countries, in addition customized to your specific to new communities forming here in needs. the United States,” Mary Lou Controlco can assume Redding adds. full responsibility for project

INSTANT REPLAY: Philip Ufkes (left) assists technician Nick Sorise with the final functional test of an airborne RF communications amplifier.

management, implementation, application support and software upgrades, preventive maintenance and emergency service on your building automation systems. Our expertise and working knowledge includes both commercial and industrial sectors and all building applications, types and makes of systems.

For more information, please visit our website at

www.controlco.com

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looking ahead... UEC Electronics strives to stay market diversified by pursuing military, commercial, and entrepreneurial contracts. Being involved in a wide range of products and markets gives the company a diverse client base and visibility to various technologies and best practices.

P

hilip Ufkes, vice president and chief engineer of UEC Electronics, LLC, compares the company’s manufacturing capabilities to a baseball diamond; each base symbolizes a different market, and each has its own unique level of customer expectations and requirements. For the $20 million engineering-design and product-realization firm in Hanahan, South Carolina, first base represents computers, cell phones, and various other disposable, high-volume-manufactured products. Second base represents automotive and industrial products as well as military systems, vehicles, and vessels. Third base addresses aerospace, flight hardware, missiles, and medical equipment, where the stakes and compliance criteria are even higher. Home plate is reserved for satellites, space vehicles, and nuclear components—where expectations are the greatest and 100-percent compliance and precision are critical to the safety of individuals as well as to national defense. “Our four-year strategy was to play shortstop, moving seamlessly and cost-effectively between second- and third-base customers and products,” Ufkes says. “We have achieved this goal after receiving our AS9100 aerospace quality certification to build ‘third-base’ products and successfully landing and executing contracts in this market.” In addition, UEC has recently built

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SUCCESS!

strategy

Industry Pulse

"I am not optimistic that high-volume 'first-base' manufacturing will ever recover from where we are now in this country, as the trend has been to go offshore for so long now," Ufkes says. "I think we will continue to see a slow decline in many 'first- and second-base' markets; however, there are many mainstream and entrepreneurial opportunities where innovative and responsive manufacturers will do well in this environment. Low- to mid-volume manufacturing still exists; however, it is very competitive. When we’re competing for business, we’re often bidding against four, five, or six companies. Keeping costs under control is critical."

From bare metal to the toughest Mil Spec finishes ...

We’ve enjoyed supporting UEC Electronics and Automation in their success and congratulate the entire UEC Team on their phenomenal accomplishments.

a facility that incorporates the latest surfacemount circuit-card-assembly technology. The technology is capable of performing “Class 3” work, in addition to many other process, quality, and technological improvements. A full-service products and solutions provider, UEC has a proven track record of delivering the highest-quality engineering, integration, and manufacturing services. The company also specializes in product development, rapid prototyping, test and evaluation, integration, and turnkey complex assemblies. In the 15 years since Ufkes and his wife Rebecca founded the company, UEC’s client list has expanded to include Space and Naval Warfare Systems Center Atlantic, Raytheon, Stanley Associates, Science Application International Corporation, Marine Corps Systems Command, Warner Robins AFB, BAE Systems, Boeing, Parker Aerospace, Cummins Engine Company, Cummins Turbo Technologies, ITT Power Solutions, and United Technologies Corporation. The company's military experience includes

7220 Highway 544 Myrtle Beach, SC 29588

(843) 236-5800 Phone (843) 236-5804 Fax cmd@sccoast.net jan/feb 2011

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ELECTRONICS 340 Deming Way Summerville, SC 29483 Phone: 843-402-0999 Fax: 843-402-0270 www.metalworxinc.com

SERVICES Contract Manufacturing CNC Machining Manual Machining Assembly Job Shop Services Manual fabrication Laser Cutting

UEC Electronics is a full life-cycle provider of complex products, systems and solutions to military, aerospace, medical and commercial clients. Our talented and experienced team responds to our customers’ needs and is committed to delivering results that yield long-term mutual success.

Specializing in: • comprehensive product realization • engineering & design

INDUSTRIES SERVED Medical Military Aerospace

Industrial Alternative Energy Automotive

• rapid-prototyping & testing • lean manufacturing • multi-rack systems, complex assemblies, cca, wire harnesses • after market service & support

SERVICES Powder and Liquid Coatings Manual and Robotic Applications Chemical Agent Resistant Coating(CARA) Paint Complete Pretreatment Operation 260 Thorpe Road, Summerville SC 29483 Phone: 843-285-7888 Fax: 843-285-2695 www.pro-coatfinishing.com 72

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Find out more at

www.uec-electronics.com UEC Electronics, LLC | (843) 552-8682 5914 Howard St. | Hanahan, SC 29410 ISO 9001 & AS 9100 certified

the design, prototype, and manufacturing of an MRAP-vehicle electrical system and the design and production of the AC & DC electrical-power distribution, interior lighting, troop seating, cabling, and mechanical subassemblies for the Marine Corps amphibious-assault-vehicle command-and-control upgrade. UEC Electronics also manufactures RF amplifiers and cockpit-panel assemblies for US-military rotary-wing aircraft and performs highly complex assembly and integration of missilesystem components and test equipment. Providing both the engineering-design and the manufacturing capability is a key strategy to UEC Electronics’ success. Being involved in the client’s complete product lifecycle from conception to finished product allows the company continuous involvement and continuity during rapid prototyping and volume manufacturing. If UEC engineers decipher a product or manufacturability glitch, they can remedy the problem in real-time, which expedites and optimizes the manufacturing process, ultimately saving the customer cost and schedule. “There’s an intermediate step between design and manufacturing where you verify and validate the design as well as [decide] how you are going to produce it,” Ufkes says. “The design could be perfect, but you could introduce a flaw by the way you are putting it together. For example, if you lay out a printed circuit card and find that there are problems during the manufacturing phase—the components are too tall, too fat, spaced too tightly—because it is all occurring within our company, our engineers are right there understanding the problems and making the necessary changes and improvements. If we didn’t have this capability, we wouldn’t know about or ever encounter the manufacturing issues. We continue to develop lessons and retain this very important knowledge for future projects.” [P] a message from custom machine & design, inc. Custom Machine and Design, Inc. has been a supplier of high-quality, custom metalwork for more than 35 years—serving the aerospace, military, marine, and medical markets. We offer services ranging from prototype development to production and finishing. If you have a special metalwork project requirement, or simply want to enlist the aid of a quality-conscious supplier, contact us at cmd@ sccoast.net.

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community development

community development

73 Exceptional Persons, Inc. 75 HUB international limited 77 kapur & associates 80 price engineering

Redefining (Dis)Ability Exceptional Persons, Inc. transforms the lives of disadvantaged individuals and families in need by Catey Hill

I Chris Sparks, Executive Director

“We are focused people. As we carry out our mission, we provide support when people need it most and help improve quality of life. Not everyone gets to do that.” Chris Sparks, Executive Director

BY THE NUMBERS

t’s a situation you wouldn’t wish upon your worst enemy: 21 men working long hours in a harsh meatpacking plant for as little as 44 cents per hour. On top of that, the men have developmental disabilities, and the company houses them in a substandard building that has been shut down by the fire marshal. It’s a situation many organizations would feel overwhelmed by: how do you find new jobs for these men once you free them from the plant? Where do you house them? How do you deal with the psychological stress inflicted upon them?

Luckily, for this group of men, and for thousands of others, there’s Exceptional Persons, Inc. EPI is a nonprofit, charitable organization that offers community-based services that positively affect the lives of people with disabilities and families with childcare needs. On any given day, it serves more than 600 individuals with disabilities, and throughout the course of a year, it helps more than 2,000 families through its childcare resource and referral services. The Iowa-based organization recruits and trains hundreds of staff members on how to help these individuals and their families successfully deal with the challenges in their lives. The organization offers employment, transportation and children’s respite, referrals, and other services and encourages active community participation among individuals and families. EPI changed the lives of those 21 men working in a meatpacking plant. Within 72 hours of being notified of the situation, the organization transported them to another location, saw to their immediate medical needs, and found them housing and day activities. The long-term results of EPI’s intervention are even

more impressive: nearly a year later, 14 of those 21 men are still living in the community and the remaining men are in their family members’ care. “They smile now; they are healthier,” says Katie Slade, EPI’s communications and development director. A class of its own It’s success stories like this one that have made EPI a leader in its field. The company started in 1957—a time when there were few community organizations helping people with disabilities—with only two employees. Today, it has more than 400 employees and a budget of $19 million. In the past 10 years alone, its staff has grown by about 40 percent, and its budget has increased by about $13 million. Even though EPI mainly reaches out to those with intellectual and developmental disabilities, brain injuries, or mental illness and their families, the company doesn’t restrict whom it will help. EPI also helps disadvantaged individuals who don’t fit into its specific mission, as well as all parents in the community (not just the ones who have children

1957: founded • 405: employees • $19 million+: 2009 revenue • 600+: individuals with disabilities served on any given day 2,000+: families served through the year through childcare resource and referral services

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COMMUNITY REACH: Staff and individuals served by EPI take part in a local parade.

SINCE 1916 Your Insurance Specialist Under One Roof Insurance Services Commercial Personal Auto Home Flood Life/Health

PDCM Insurance 3927 University Ave Waterloo, IA 50701

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with disabilities). In fact, the company actively looks for new groups that its services might help. Furthermore, EPI is a strong, stable company. Since it’s inception, EPI has had only three executive directors, and the last one stayed at the company for 32 years. In a time when many similar organizations have had trouble recruiting board members, EPI has a loyal, steady board of directors. It’s this internal stability, combined with an outreach program that includes highly trained staff and a track record of success, that puts EPI in a class of it’s own. How to make a difference From offering meaningful services for disabled individuals and families with childcare needs to fostering a sense of community among these groups, EPI makes a difference in the community it serves. It creates an inclusive community where people with disabilities can participate, give back, and become active members of their community. In addition, EPI delivers top-of-the line services for people with disabilities and families with childcare needs, including employment services, respite services for families, and residential services for people with disabilities. EPI is also a strong financial contributor to the local economy as it helps individuals with disabilities find jobs and employs more than 400 people. EPI’s community involvement helps ensure that the community has enough quality childcare services, such as childcare referrals for all families, with its childcare-provider recruitment and training program. Although the organization has spent over 60 years nourishing Iowa’s communities, it knows that its work is not done—but in EPI’s hands, the future looks bright. [P] a message from pdcm insurance PDCM Insurance is a proud supporter of Exceptional Persons, Inc. EPI and PDCM share common goals of excellence for the community, clients, and staff. As a long-time partner with EPI, PDCM has insured Exceptional Persons' growth for over 35 years. Thank you, EPI, for the hard work and opportunity you provide for the Cedar Valley!

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strategy to share

CONSTANTLY IMPROVE YOUR ORGANIZATION EPI strives to provide high-quality, community-based services for individuals with disabilities and their families, as well as for families with childcare needs. At the same time, the organization tries to increase cost effectiveness while maintaining the high quality of its services. It also works to find new areas for service expansion in areas of high need.

Charitable Endeavors Exceptional Persons, Inc. is a nonprofit, charitable organization that makes a positive difference in the lives of people with disabilities and families with childcare needs. The Iowa-based organization recruits and trains hundreds of volunteers who provide residential, employment, resource, and referral services for these groups. Not only is EPI a charitable nonprofit organization, its employees continue to give back to the community in the form of United Way contributions and fundraisers, as well as organizing a “Giving Tree” during the holidays, which ensures that the individuals EPI serves have a bright holiday, even though their families may not have the ability to provide for them.

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community development

Give, Invest, Volunteer, Engage, Serve HUB International Limited, an international insurance broker with local attachments by Patrick Winegar

B

“We want you to have a life outside of work. I believe that people that have balance in their life end up being the best employees you could have.” Marty Hughes, Chairman & CEO

elieving they were taking part in a routine team-building exercise, hundreds of employees at an international insurance brokerage were hunkered down in a ballroom in Albuquerque, New Mexico, piecing together nearly 150 bicycles for a local charity. After hours of work, the employees were surprised to see the wide eyes and happy faces of dozens of children. “What they didn't know was that we then had the kids coming in to actually get their bikes,” says Marty Hughes, chairman and CEO of HUB International, “I've never seen so many adults with tears in their eyes. The kids were just overwhelmed with the fact that they were getting a brand new bike.” Formed by the merger of 11 Canadian brokerages in 1998, HUB International has grown to be the 11th largest insurance broker in the world. Now based in Chicago, HUB provides services in corporate risk management and insurance, personal insurance, and employee benefits, with a focus on middle-market firms. The company has made over 200 acquisitions since its founding, yet through its vibrant corporate culture and extensive investment in the community, it has maintained a high level of morale among its employees, as well as the gratitude of the people affected by its contributions and volunteer work. From its business strategy to its charitable programs, HUB executes a community-based approach. “You walk a fine line between offering all of those services...and yet keeping the entrepreneurial spirit alive,” Hughes says, “So we focus like heck on making sure that everything that touches the client remains local.” By combining the wide breadth of resources of a large company with strategies unique to the needs of each office, HUB concentrates on providing its clients with cost-effective solutions while serving the demands of the local market. The company enacts a similar policy with regard to its charity and giving programs. Field offices

BY THE NUMBERS

are encouraged to find organizations that affect the community needs around them, and their efforts are financially supported by the corporation. Everyone, from CEO to staff, devotes money or time to groups such as the American Red Cross, Meals on Wheels, and the Jane Addams Hull House Association, where Hughes serves on the Board of Trustees. The selection of organizations and execution of charitable activity is based on the HUB GIVES (Give, Invest, Volunteer, Engage, Serve) program, a policy that emphasizes local development, hands-on volunteer service, and broad, long-term sustainable support on behalf of the company. “This is not a quid pro quo.” Hughes says, “You do it because you care about the organization; it's something that you personally embrace and you can freely give of your time and talent.” Through HUB GIVES, the company has supported programs such as the Keogh Health Connection in Phoenix, Arizona. The nonprofit was cofounded by Karlene Keogh, a HUB employee, and provides families living in poverty with vital assistance in applying for public-health and nutrition benefits as

1998: founded • 4,500: employees • 11th: rank in size among insurance brokers worldwide • 210: acquisitions to date • 230: offices in North America

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community development

LIBERTY MUTUAL

Experience. Strength. Responsibility.

strategy to share

CHARITY PAYS

HUB GIVES: More than 40 underprivileged New Mexico children received bicycles assembled by HUB executives during the company’s annual recognition event for top sales producers.

Success in this industry depends upon retaining clients and drawing in quality employees. By engaging in local service projects, a business not only develops the community around it, but allows the workforce to have a balanced lifestyle outside of the office. In turn, talented people are attracted to organizations that offer employees these opportunities for personal growth. While giving back to the community is always its own reward, it has the added benefit of improving morale and promoting a healthy corporate culture.

WORKERS COMPENSATION GENERAL LIABILITY | PROPERTY UMBRELLA | COMMERCIAL AUTO

Liberty Mutual is pleased to partner with Hub International to provide broad commercial property and casualty insurance coverage, common sense loss control programs, and responsive claims services that help our clients achieve superior outcomes. That’s our policy.

www.libertymutualgroup.com

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well as connecting them to the area’s free clinics and affordable community health centers. HUB plans to expand the program to other cities where it has regional offices. Hughes says that while giving back is its own reward, giving employees the opportunity to invest in their community provides a substantial benefit to the company. Allowing the staff to personally engage in meaningful charitable causes provides not only a morale boost but establishes a driven, well-rounded workforce. “We want you to have a life outside of work,” Hughes says. “I believe that people that have balance in their life end up being the best employees you could have.” [P]

a message from liberty mutual At Liberty Mutual, we make it our responsibility to provide superior service and solutions to our agents, brokers, and policyholders. Whether it’s offering flexible and competitive products, responding quickly to inquiries and requests, achieving better claims outcomes, or providing high value for the price, we are committed to delivering meaningful results and surpassing expectations. With nearly 100 years of experience, we understand the importance of collaborating with our agents and brokers to address the challenges faced by our customers. Together, we possess the resources and expertise to help protect their businesses—because building long-term, mutually beneficial relationships is our policy.

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community development

In the Hands of the People How Ramesh Kapur shares his success with employees by giving them partial ownership by Sally Deering

R

amesh Kapur immigrated to the United States from India with six dollars in his pocket. He drove taxis and toiled as a laborer while earning two master’s degrees in engineering. Then, in 1981 in Milwaukee, Wisconsin, Kapur started his own firm—with one engineer on staff—and built Kapur & Associates into a multimillion-dollar, multidiscipline consulting and engineering firm with a business philosophy that will live on long after Kapur retires: treat your employees fairly, and be a man of your word to your clients.

Kapur & Associates has grown to a staff of 125 who have gone far beyond the small jobs they took on in the early 1980s when Kapur sought work for his company—pounding Milwaukee’s pavement day and night, networking, attending local municipal meetings, and building his business one job at a time. “The main thing was living up to my word,” CEO Kapur says. “We were new, and people didn’t know us, so we didn’t have too much room to make mistakes. But whatever I committed to the clients, no matter what, we lived up to it.” To better serve the clients in key markets, Kapur opened branches in Burlington, Green Bay, and Wausau, Wisconsin, and in Chicago. As business expanded, so did Kapur and his staff’s technical knowledge and expertise. Today, the firm boasts a stellar reputation in architectural engineering and construction, 3-D data modeling, surveying, construction management, landscape architecture, natural-resources planning, and site design. Completed projects include the Blue Sky Green Field Wind Energy Center, the Marquette Interchange, the Dan Ryan Expressway, O’Hare Water Retention Basin, Glacier Hills Wind Park, and the Holtwood Power Plant Expansion in Pennsylvania. One project in progress is the Zoo Interchange, where Kapur and his staff are helping rebuild the busiest major interchange in Wisconsin—from preliminary design to construction— that will take 10 years to complete.

BY THE NUMBERS

Engineers, Planners, and Surveyors for Municipalities, Developers and the Wisconsin DOT Van Henkelum, Lynch & Associates is proud to have been an engineering partner of Kapur & Associates for more than 30 years.

ramesh kapur, ceo

strategy to share

VALUE YOUR STAFF "Treat your staff well and treat your people fairly. They are the ones making it happen for you."

Jodi M. Lynch, President Paul Van Henkelum, Principal

W232 S7530 Big Bend Drive Big Bend, Wisconsin 53103 Tel: 262-662-4292 Fax: 262-662-0113 Email: jlynch@vla-engineering.com www.vla-engineering.com

1981: founded • $6: amount Ramesh Kapur had when he immigrated to the United States • 1: employees on staff when firm started • 125: current employees 5: office locations • 25+: transportation-design professionals on staff

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Ansay & Associates

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community development

HELPING HANDS Along with building structures, Ramesh Kapur and his staff build relationships in the community. The company raises money for The United Way through the Hunger Task Force, leads Toys for Tots toy drives, and participates in Adopt a Soldier, where the staff sends encouraging correspondence to men and women overseas. For the past 15 years, the employees have also donated their time working with elementary, highschool, and college students, offering resources and expertise to help advance their engineering interests.

www.spannllc.com "Offering innovative solutions to tomorrow's growing infrastructure needs."

“That’s a big job and we’re looking forward to making that happen,” Kapur says. “It’s a nice job for the community and the people who work on it. We are partnered with two other companies on the Zoo Interchange, and each company is bringing their expertise. It’s like putting a big puzzle together.” Collaboration has always been important to Kapur, who prefers to give his staff the credit for the company’s accomplishments. Along with kudos for a job well done, Kapur has provided a legacy for his staff when they retire. Kapur & Associates is partially employee-owned through the Employee Stock Ownership Program (ESOP)—an incentive Kapur put in place for the employees to take over the company, thereby passing ownership to them when he retires.

“I am so indebted to the staff we have,” Kapur says. “I could have sold the company many times to outsiders, but the company is going to the employees. If you want to take all the credit, you take it. My credit goes to the employees. I did my part; they did their part.” Looking ahead, Kapur says that economic times are very tough for small businesses that are trying to stay afloat. Without the help of the banks that lend money to business owners, he says that the next few years will be challenging. “Business owners don’t know if their business is going to be there long or short term,” Kapur says. “The banks should be lending money and giving tax breaks to businesses. If businesses don’t get the money, how will they create the jobs?” [P]

Spann & Associates, LLC is a privately held civil engineering design and construction management services to both the public and private sector. Our commitment through performance is to provide service with integrity and technical excellence as we seek to provide innovative solutions to today's infrastructure for the clients and communities we serve. 1850 North Dr. Martin Luther King Jr. Drive Ste 203 | Milwaukee, WI 53212 Phone: 414.265.4803 | Fax: 414.265.7214 jan/feb 2011

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community development

Unlocking the Potential Price Engineering mentors up-and-coming students and puts family values first by Kelly Matlock

I

t isn’t always easy for companies to make charity and community involvement a business priority, but Tom Price Jr., owner of Wisconsin-based Price Engineering, has learned firsthand why focusing on family and community, and maintaining a workplace that embraces those values, is so important.

tom price jr., president & ceo

strategy to share

FLEX WITH CLIENT NEEDS "Creating value for our clients in today’s business environment demands a renewed process and business model," Price says. "With more than 50 years of experience, Price Engineering understands this challenge and has developed a collaborative approach to discover the unmet needs and help customers unlock value in their businesses. We are creating unique partnerships and leveraging technology to empower users and seed their future business opportunities."

BY THE NUMBERS

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When Price graduated with a mechanical-engineering degree from University of Wisconsin in 1981, he got a job offer from Ingersoll-Rand (I-R) as an applications engineer in the air-compressor division. He accepted the offer and moved his family to Los Angeles for the position. “I knew I wanted to prove myself in a profession and company outside of the family business,” Price explains. “Three years later, I accepted a position with I-R in Virginia and covered a three-state area including West Virginia and North Carolina. I enjoyed a very successful career with I-R, but after six years, I had reached a point where I needed to make a career decision: move up the corporate ladder or go learn the family business.” Judging by where Price sits now, as president and second-generation owner of Price Engineering, it’s pretty clear the decision he made, but it wasn’t such a simple choice at the time. “I decided to move my family back [to Wisconsin],” Price says. “With a cut in pay and losing the company car, it wasn’t necessarily an easy decision.” Mentored by his father and uncle when he first joined the company as an engineering manager in 2004, Price acquired some powerful skills and gained unique insight that he would be able to apply as he furthered his career within the company. “My uncle Jim was a legend in the industry, and I spent most of my early years at the company learning the technical side of the business,” Price says. “Later on, I worked with my father and learned a

great deal about the sales side of the business and the importance of customer service.” Now, with approximately 5,000 customers served across three divisions, Price Engineering continues to value quality customer service, high standards of ethics, and acquired knowledge and expertise— which may explain the company’s 90-percent customer-retention rate and how it doubled its revenue from 2003 to 2008, reaching $50 million in annual sales and expecting 25-percent revenue growth in 2010. The engineering-design firm offers mobile, industrial, and service solutions to a range of clientele. Perhaps the company’s growth and success are products of its dedicated employees who value Price’s family-style workplace—evident in its “hire for life” philosophy and in the workforce where over 35 percent of employees have been with the company for more than 10 years. Needless to say, employees appreciate the positive environment and job security, especially in the current recession. “There is a unique difference between a family-owned business and a large corporation or public company,” Price says. “Different decisions are made based upon the commitment I have for the employees and their families. We are very aware and concerned about the need for a stimulating work environment as well as helping them prepare for the future.” Extending that commitment to developing and preparing people for the future, in 2000, the company

90: employees • 73%: percentage of top 100 customers from 2009 who have purchased from Price • 50 million: annual sales 25%+: expected 2010 revenue growth • 35%: percentage of employees that have been with company for 10 years or more 5,000: customers

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community development

A GRAND ADVENTURE: Tom Price Jr. takes a swim in Wisconsin's Bark River on a January day—a swim that earned $1,000 for Rotary International.

became part of a unique program called FIRST (For Inspiration and Recognition of Science and Technology), the brainchild of self-made millionaire, inventor, and entrepreneur Dean Kamen, president of DEKA Research and Development. The program is a creative way to get kids excited about science and technology, fulfilling Kamen’s vision of society’s possibilities, including the transformation of culture both to increase awareness of the power of engineering and invention, and to increase the appreciation and value placed on science, math, and technology by young people. As part of the program, the FIRST Robotics Competition was established as one way to accomplish the vision. Prior to his involvement in FIRST, Price says he was looking for a way he could help develop and inspire kids and students about the world of engineering and the career opportunities waiting for engineers. “Through my experience as vocational chairman with the Rotary Club and as advisory board member of the local technical college, I was personally concerned about the lack of focus on engineering with our young people,” Price says. “When I learned about FIRST, I dedicated myself and my company to bringing this program to our local Arrowhead High School.” When the company became involved in the program 10 years ago, 20–30 students would arrive at the office every day for 6 weeks to work on and be mentored

on projects. Today, over 300 students from Arrowhead High School have participated in FIRST. “It is not uncommon for me to see or hear about how these students have flourished in college and industry,” Price says. “I am very proud of the students who have participated in this program and what it has meant to them in carving out their future. Now, we are working on making it a part of the school’s technical curricula, not just another school club.” In addition to the time and resources given to the FIRST program, Price Engineering also gives back to the community in other ways. Through Price’s active membership in the Lake Country Rotary chapter, the company contributes to Christmas toy drives; collects and distributes books, videos, computers, eyeglasses, and emergency items for New Orleans; and internationally donates the shipment and logistics for many Rotary projects in Haiti and throughout the world. At the end of the day, Price and the employees at Price Engineering can feel good about not only serving their own customers, but serving the community as well. Price hopes that his efforts with FIRST and other charitable involvements will help shape tomorrow’s leaders and inventors. As he says, “A new kind of hero needs to be celebrated—the individual who uses his life to improve all our lives by solving the problems we face in our society through insightful use of science and technology.” [P]

FIRST Program For Inspiration and Recognition of Science and Technology This student-mentoring program, created by Dean Kamen, president of DEKA Research and Development, provides hands-on learning that excites kids about science and technology. Price Engineering brought FIRST to Arrowhead High School 10 years ago. For its first three years, 20–30 students came to Price each day for six weeks to learn about engineering projects as part of the program. Today, more than 300 students from Arrowhead have participated in the program.

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Globe

trotting

Entrepreneurs and CEOs doing business around the world

Michael H. Evans CEO & Cofounder of The Vines of Mendoza Location: Mendoza, Argentina Industry: Wine/Vineyard Development, Real-Estate Management Years in Wine Industry: 6 On starting his business: I have always been passionate about wine and spent a great deal of time in the Napa Valley and other vineyards worldwide. In Mendoza, I was inspired by the quality of the wines and the wonderful people, and intrigued by the culture. But also frustrated—it wasn’t so easy to get access to all the vineyards at the time. My business partner, Pablo Gimenez Riili, is a third-generation Argentine winemaker and the biggest motivating force behind our founding The Vines of Mendoza. His family’s legacy and reputation in Argentina’s wine industry as well as his acute knowledge of the region have been critical to our success. Together, we set out to develop a worldclass, high-quality, tourist-friendly wine destination and enterprise in Mendoza. On the business climate in Argentina: There are tremendous business opportunities. Mendoza and its wine industry are a proven tourist destination, and have grown tremendously in recent years. The value of land is unparalleled, particularly compared to Napa Valley. Vineyards are around $160,000 per hectare ($60,000 per acre) as opposed to Napa’s $720,000 per hectare. Wines from Argentina are more popular than ever. Shipments of Argentine Malbec to the U.S. have quintupled in the last 5 years to nearly 3.15 million cases in 2009 from about 628,000 cases in 2005. In addition, Argentine wine has benefited from the strength of the dollar against the Argentine peso. With prices remaining stable, many Americans see Argentine wines as great values.

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Mikael Gummerus CEO & Founder of Frosmo Location: Helsinki, Finland Industry: Internet/Social-Media Services Years in Industry: 3 On starting his business: I've always felt that I should have my own company and that it would be great to be an entrepreneur. In Finland, business schools taught us that becoming an entrepreneur is too risky (yep, really), so it took several years to get enough courage to branch out on my own. It all came to the point where I felt it was the right time to jump into the start-up life. It’s risky jumping in alone, but luckily, I had built an incredible network of fellow entrepreneurs and successful business people that helped push me into the water. On the business climate in Finland: Being an entrepreneur in Finland is actually pretty great. We have really good support systems with government grants—especially for high-tech companies and businesses that want to go international. That, combined with our free healthcare system, makes it actually really low risk to become an entrepreneur. Finland is a pretty small home market, and competition might not be that tough here. The upside is that it forces you to grow internationally. The Finnish economy is recovering pretty nicely, although almost everyone is still hesitant about the future. The economy has affected more traditional businesses like the foresting and industrial-materials industries, but the information and communication technology (ICT) sector continues to be advancing pretty strong. For start-ups and new entrepreneurs, the general feeling is positive—probably because you have to be truly optimistic to work in this business.

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Innovations & Performance For Our Mobile World Solutions & Products for Mobile, Industrial & Wind Turbine Industries.

MOBILE SOLUTIONS : NOT LIMITED TO WHEELS OR TRACKS! Price Engineering has the tools necessary to produce innovative solutions to maximize your performance. Whether it be winch, crane, sail or thruster controls we have the knowledge to make it all work.

1175 Cottonwood Avenue, Hartland, WI 53029-8309 tel 262 369-3700 fax 262 369-3711 www.priceeng.com


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Senior-Program Manager Life Sciences & Medical Products Solutions

• Is the continuous pain caused by the lack of value for your insurance dollar and unnecessarily high premiums keeping you up at night? • Are you suffering from slow response and /or poor advice from your broker? • Ever wake up to discover that your policy doesn’t provide you with the necessary coverage after you had a loss and then have to deal with the stress, pain, and restless nights as you triage all of your company financial resources to pay out of pocket? • Why allow a loss you didn’t intend to self insure to CUT into your bottom line…

EXPERIENCE TRULY LIBERATING, LONG-TERM RELIEF FROM THESE CONDITIONS AND 602-707-1917 MANY OTHERS BY TALKING WITH THE SPECIALISTS AT ALLIANT INSURANCE TODAY. We have an unmatched ability to holistically diagnose and cure your company’s known and unknown insurance, risk management, and employee benefit conditions with truly cost-effective solutions. Ranking among the 15 largest brokerage firms in the US, with an extensive global portfolio of Life Science and Medical Product Industry manufacturers and distributors as clients, we have a proven record of delivering the specialized products, programs, resources, and intellectual capital for your pain-free insurance future.


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